[Congressional Record Volume 149, Number 132 (Wednesday, September 24, 2003)]
[House]
[Pages H8500-H8784]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONFERENCE REPORT ON H.R. 2658, DEPARTMENT OF DEFENSE APPROPRIATIONS 
                               ACT, 2004

  Mr. Lewis of California (during consideration of H. Res. 374) 
submitted the following conference report and statement on the bill 
(H.R. 2658) making appropriations for the Department of Defense for the 
fiscal year ending September 30, 2004, and for other purposes:

                  Conference Report (H. Rept. 108-283)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2658) ``making appropriations for the Department of Defense 
     for the fiscal year ending September 30, 2004, 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, 2004, 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), and to the Department of Defense Military 
     Retirement Fund, $28,247,667,000.

                        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), and to the Department of Defense Military Retirement 
     Fund, $23,217,298,000.

                    Military Personnel, Marine Corps

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Marine Corps on 
     active duty (except members of the Reserve provided for 
     elsewhere); and for payments pursuant to section 156 of 
     Public Law 97-377, as amended (42 U.S.C. 402 note), and to 
     the Department of Defense Military Retirement Fund, 
     $8,971,897,000.

                     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), and to the Department of Defense Military 
     Retirement Fund, $22,910,868,000.

                        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, 
     $3,568,725,000.

                        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, $2,002,727,000.

                    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, $571,444,000.

                      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, 
     $1,288,088,000.

                     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,

[[Page H8501]]

     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, $5,500,369,000.

                  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, $2,174,598,000.

                                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 $11,034,000 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, $25,029,346,000: 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: Provided further, That of 
     funds made available under this heading, $2,500,000 shall be 
     available for Fort Baker, in accordance with the terms and 
     conditions as provided under the heading ``Operation and 
     Maintenance, Army'', in Public Law 107-117.

                    Operation and Maintenance, Navy

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Navy and the Marine Corps, 
     as authorized by law; and not to exceed $4,463,000 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, 
     $28,146,658,000.

                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, $3,440,323,000.

                  Operation and Maintenance, Air Force

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Air Force, as authorized by 
     law; and not to exceed $7,801,000 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, $26,904,731,000: Provided, That 
     notwithstanding any other provision of law, that of the funds 
     available under this heading, $750,000 shall only be 
     available to the Secretary of the Air Force for a grant to 
     Florida Memorial College for the purpose of funding 
     minority aviation training.

                Operation and Maintenance, Defense-Wide


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of activities and agencies of the 
     Department of Defense (other than the military departments), 
     as authorized by law, $16,226,841,000, of which not to exceed 
     $30,000,000 may be available for the CINC initiative fund; 
     and of which not to exceed $40,000,000 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 
     notwithstanding any other provision of law, of the funds 
     provided in this Act for Civil Military programs under this 
     heading, $500,000 shall be available for a grant for Outdoor 
     Odyssey, Roaring Run, Pennsylvania, to support the Youth 
     Development and Leadership program and Department of Defense 
     STARBASE program: Provided further, That none of the funds 
     appropriated or otherwise made available by this Act may be 
     used to plan or implement the consolidation of a budget or 
     appropriations liaison office of the Office of the Secretary 
     of Defense, the office of the Secretary of a military 
     department, or the service headquarters of one of the Armed 
     Forces into a legislative affairs or legislative liaison 
     office: Provided further, That $4,700,000, to remain 
     available until expended, is available only for expenses 
     relating to certain classified activities, and may be 
     transferred as necessary by the Secretary to operation and 
     maintenance appropriations or research, development, test and 
     evaluation appropriations, to be merged with and to be 
     available for the same time period as the appropriations to 
     which transferred: Provided further, That any ceiling on the 
     investment item unit cost of items that may be purchased with 
     operation and maintenance funds shall not apply to the funds 
     described in the preceding proviso: Provided further, That 
     the transfer authority provided under this heading is in 
     addition to any other transfer authority provided elsewhere 
     in this Act.

                Operation and Maintenance, Army Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Army Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications, 
     $1,998,609,000.

                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, 
     $1,172,921,000.

            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, $173,952,000.

              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, $2,179,388,000.

             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), $4,340,581,000.

             Operation and Maintenance, Air National Guard

       For operation and maintenance of the Air National Guard, 
     including medical and hospital treatment and related expenses 
     in non-Federal hospitals; maintenance, operation, repair, and 
     other necessary expenses of facilities for the training and 
     administration of the Air National Guard, including repair of 
     facilities, maintenance, operation, and modification of 
     aircraft; transportation of things, hire of passenger motor 
     vehicles; supplies, materials, and equipment, as authorized 
     by law for the Air National 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, $4,431,216,000.

            Overseas Contingency Operations Transfer Account


                     (including transfer of funds)

       For expenses directly relating to Overseas Contingency 
     Operations by United States military forces, $5,000,000, to 
     remain available until expended: Provided, That the Secretary 
     of Defense may transfer these funds only to military 
     personnel accounts; operation and maintenance accounts within 
     this title; the Defense Health Program appropriation; 
     procurement accounts; research, development, test and 
     evaluation accounts; 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 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 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, $10,333,000, 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, $396,018,000, 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

[[Page H8502]]

     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, Navy


                     (including transfer of funds)

       For the Department of the Navy, $256,153,000, 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, $384,307,000, 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, $24,081,000, 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, $284,619,000, 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 2561 of title 10, United States Code), 
     $59,000,000, to remain available until September 30, 2005.

                  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, and for 
     defense and military contacts, $450,800,000, to remain 
     available until September 30, 2006: Provided, That of the 
     amounts provided under this heading, $10,000,000 shall be 
     available only to support the dismantling and disposal of 
     nuclear submarines, submarine reactor components, and 
     warheads in the Russian Far East.

                               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, 
     $2,154,035,000, to remain available for obligation until 
     September 30, 2006.

                       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, 
     $1,505,462,000, to remain available for obligation until 
     September 30, 2006.

        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, $1,857,054,000, to remain available for 
     obligation until September 30, 2006: Provided, That of the 
     funds made available under this heading, $35,000,000 shall be 
     available only for advance procurement items for the fifth 
     and sixth Stryker Brigade Combat Teams.

                    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, 
     $1,387,759,000, to remain available for obligation until 
     September 30, 2006.

                        Other Procurement, Army

       For construction, procurement, production, and modification 
     of vehicles, including tactical, support, and non-tracked 
     combat vehicles; the purchase of passenger motor vehicles for 
     replacement only; and the purchase of 4 vehicles required for 
     physical security of personnel, notwithstanding price 
     limitations applicable to passenger vehicles but not to 
     exceed $180,000 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, 
     $4,774,452,000, to remain available for obligation until 
     September 30, 2006.

                       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, $9,110,848,000, to remain available 
     for obligation until September 30, 2006.

                       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, 
     $2,095,784,000, to remain available for obligation until 
     September 30, 2006.

[[Page H8503]]

            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, 
     $934,905,000, to remain available for obligation until 
     September 30, 2006.

                   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:
       Carrier Replacement Program (AP), $1,186,564,000;
       NSSN, $1,511,935,000;
       NSSN (AP), $827,172,000;
       SSGN, $930,700,000;
       SSGN (AP), $236,600,000;
       CVN Refuelings (AP), $232,832,000;
       SSN Submarine Refuelings, $450,000,000;
       SSN Submarine Refuelings (AP), $10,351,000;
       SSBN Submarine Refuelings (AP), $105,800,000;
       DDG-51 Destroyer, $3,218,311,000;
       LPD-17, $1,192,034,000;
       LPD-17 (AP), $135,000,000;
       LHD-8, $355,006,000;
       LCAC Landing Craft Air Cushion, $73,087,000;
       Mine Hunter SWATH, $4,500,000;
       Prior year shipbuilding costs, $635,502,000;
       Service Craft, $23,480,000; and
       For outfitting, post delivery, conversions, and first 
     destination transportation, $338,749,000.
       In all: $11,467,623,000, to remain available for obligation 
     until September 30, 2008: Provided, That additional 
     obligations may be incurred after September 30, 2008, 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 passenger 
     motor vehicles for replacement only, and the purchase of 7 
     vehicles required for physical security of personnel, 
     notwithstanding price limitations applicable to passenger 
     vehicles but not to exceed $200,000 per vehicle; expansion of 
     public and private plants, including the land necessary 
     therefor, and such lands and interests therein, may be 
     acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway, $4,941,098,000, to remain available 
     for obligation until September 30, 2006.

                       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 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, 
     $1,165,727,000, to remain available for obligation until 
     September 30, 2006.

                    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, 
     $12,086,201,000, to remain available for obligation until 
     September 30, 2006.

                     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, 
     $4,165,633,000, to remain available for obligation until 
     September 30, 2006.

                  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, 
     $1,262,725,000, to remain available for obligation until 
     September 30, 2006.

                      Other Procurement, Air Force

       For procurement and modification of equipment (including 
     ground guidance and electronic control equipment, and ground 
     electronic and communication equipment), and supplies, 
     materials, and spare parts therefor, not otherwise provided 
     for; the purchase of passenger motor vehicles for replacement 
     only, and the purchase of 1 vehicle required for physical 
     security of personnel, notwithstanding price limitations 
     applicable to passenger vehicles but not to exceed $200,000 
     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, $11,558,799,000, to remain available for obligation 
     until September 30, 2006.

                       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 passenger motor vehicles for 
     replacement only, including not to exceed 3 passenger motor 
     vehicles for the Defense Security Service; the purchase of 4 
     vehicles required for physical security of personnel, 
     notwithstanding price limitations applicable to passenger 
     vehicles but not to exceed $200,000 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, $3,709,926,000, to remain available for obligation 
     until September 30, 2006.

                  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, $400,000,000, 
     to remain available for obligation until September 30, 2006: 
     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.

                    Defense Production Act Purchases

       For activities by the Department of Defense pursuant to 
     sections 108, 301, 302, and 303 of the Defense Production Act 
     of 1950 (50 U.S.C. App. 2078, 2091, 2092, and 2093), 
     $78,016,000, to remain available until expended.

                                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, $10,363,941,000, to remain 
     available for obligation until September 30, 2005: Provided, 
     That of the amounts provided under this heading, $8,500,000 
     for Molecular Genetics and Musculoskeletal Research in 
     program element 0602787A, shall remain available until 
     expended.

            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, $15,146,383,000, to remain 
     available for obligation until September 30, 2005: Provided, 
     That funds appropriated in this paragraph which are available 
     for the V-22 may be used to meet unique operational 
     requirements of the Special Operations Forces: Provided 
     further, That funds

[[Page H8504]]

     appropriated in this paragraph shall be available for the 
     Cobra Judy program.

         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, $20,500,984,000, to remain 
     available for obligation until September 30, 2005.

        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, $18,900,715,000, to 
     remain available for obligation until September 30, 2005.

                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, $305,861,000, to remain available for obligation 
     until September 30, 2005.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       For the Defense Working Capital Funds, $1,641,507,000.

                     National Defense Sealift Fund

       For National Defense Sealift Fund programs, projects, and 
     activities, and for expenses of the National Defense Reserve 
     Fleet, as established by section 11 of the Merchant Ship 
     Sales Act of 1946 (50 U.S.C. App. 1744), and for the 
     necessary expenses to maintain and preserve a U.S.-flag 
     merchant fleet to serve the national security needs of the 
     United States, $1,066,462,000, to remain available until 
     expended: Provided, That none of the funds provided in this 
     paragraph shall be used to award a new contract that provides 
     for the acquisition of any of the following major components 
     unless such components are manufactured in the United States: 
     auxiliary equipment, including pumps, for all shipboard 
     services; propulsion system components (that is; engines, 
     reduction gears, and propellers); shipboard cranes; and 
     spreaders for shipboard cranes: Provided further, That the 
     exercise of an option in a contract awarded through the 
     obligation of previously appropriated funds shall not be 
     considered to be the award of a new contract: Provided 
     further, That the Secretary of the military department 
     responsible for such procurement may waive 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: Provided further, That, notwithstanding 
     any other provision of law, $6,500,000 of the funds available 
     under this heading shall be available in addition to other 
     amounts otherwise available, only to finance the cost of 
     constructing additional sealift capacity.

                                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, $15,730,013,000, of which $14,914,816,000 
     shall be for Operation and maintenance, of which not to 
     exceed 2 percent shall remain available until September 30, 
     2005, and of which $7,420,972,000 shall be available for 
     contracts entered into under the TRICARE program; of which 
     $328,826,000, to remain available for obligation until 
     September 30, 2006, shall be for Procurement; and of which 
     $486,371,000, to remain available for obligation until 
     September 30, 2005, shall be for Research, development, test 
     and evaluation.

            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, $1,500,261,000, of which $1,169,168,000 
     shall be for Operation and maintenance to remain available 
     until September 30, 2005; $79,212,000 shall be for 
     Procurement to remain available until September 30, 2006; 
     $251,881,000 shall be for Research, development, test and 
     evaluation to remain available until September 30, 2005; and 
     no less than $132,677,000 may be for the Chemical Stockpile 
     Emergency Preparedness Program, of which $44,168,000 shall be 
     for activities on military installations and $88,509,000 
     shall be to assist State and local governments: Provided, 
     That notwithstanding any other provision of law, $10,000,000 
     of the funds available under this heading shall be expended 
     only to fund Chemical Stockpile Emergency Preparedness 
     Program evacuation route improvements in Calhoun County, 
     Alabama.

         Drug Interdiction and Counter-Drug Activities, Defense


                     (including transfer of funds)

       For drug interdiction and counter-drug activities of the 
     Department of Defense, for transfer to appropriations 
     available to the Department of Defense for military personnel 
     of the reserve components serving under the provisions of 
     title 10 and title 32, United States Code; for Operation and 
     maintenance; for Procurement; and for Research, development, 
     test and evaluation, $835,616,000: 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 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 the 
     transfer authority provided under this heading is in addition 
     to any other 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, $162,449,000, of which 
     $160,049,000 shall be for Operation and maintenance, of which 
     not to exceed $700,000 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 the Inspector General's certificate of necessity for 
     confidential military purposes; and of which $300,000, to 
     remain available until September 30, 2005, shall be for 
     Research, development, test and evaluation; and of which 
     $2,100,000, to remain available until September 30, 2006, 
     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 the proper funding 
     level for continuing the operation of the Central 
     Intelligence Agency Retirement and Disability System, 
     $226,400,000.

               Intelligence Community Management Account


                     (including transfer of funds)

       For necessary expenses of the Intelligence Community 
     Management Account, $175,113,000, of which $26,081,000 for 
     the Advanced Research and Development Committee shall remain 
     available until September 30, 2005: Provided, That of the 
     funds appropriated under this heading, $44,300,000 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, 2006 and $1,000,000 for 
     Research, development, test and evaluation shall remain 
     available until September 30, 2005: Provided further, That 
     the National Drug Intelligence Center shall maintain the 
     personnel and technical resources to provide timely support 
     to law enforcement authorities and the intelligence community 
     by conducting document and computer exploitation of materials 
     collected in Federal, State, and local law enforcement 
     activity associated with counter-drug, counter-terrorism, and 
     national security investigations and operations.

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, 
     $18,430,000, to remain available until expended.

                 National Security Education Trust Fund

       For the purposes of title VIII of Public Law 102-183, 
     $8,000,000, 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 percent of the appropriations in 
     this Act which are limited for

[[Page H8505]]

     obligation during the current fiscal year shall be obligated 
     during the last 2 months of the fiscal year: Provided, That 
     this section shall not apply to obligations for support of 
     active duty training of reserve components or summer camp 
     training of the Reserve Officers' Training Corps.


                          (transfer of funds)

       Sec. 8005. Upon determination by the Secretary of Defense 
     that such action is necessary in the national interest, he 
     may, with the approval of the Office of Management and 
     Budget, transfer not to exceed $2,100,000,000 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 the Congress: 
     Provided further, That the Secretary of Defense shall 
     notify the Congress promptly of all transfers made 
     pursuant to this authority or any other authority in this 
     Act: Provided further, That no part of the funds in this 
     Act shall be available to prepare or present a request to 
     the Committees on Appropriations for reprogramming of 
     funds, unless for higher priority items, based on 
     unforeseen military requirements, than those for which 
     originally appropriated and in no case where the item for 
     which reprogramming is requested has been denied by the 
     Congress: Provided further, That a request for multiple 
     reprogrammings of funds using authority provided in this 
     section must be made prior to June 30, 2004.


                          (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 1 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 1 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:
       F/A-18 aircraft;
       E-2C aircraft;
       Tactical Tomahawk missile; and
       Virginia Class submarine:
     Provided, That the Secretary of the Navy may not enter into a 
     multiyear contract for the procurement of more than one 
     Virginia Class submarine per year.
       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 
     as required by section 401(d) of title 10, United States 
     Code: 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 2004, 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 2005 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2005 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 2005.
       (c) Nothing in this section shall be construed to apply to 
     military (civilian) technicians.
       Sec. 8011. None of the funds appropriated in this or any 
     other Act may be used to initiate a new installation overseas 
     without 30-day advance notification to the Committees on 
     Appropriations.
       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. 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. (a) Limitation on Conversion to Contractor 
     Performance.--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 the enactment of this Act, is performed by 
     more than 10 Department of Defense civilian employees 
     unless--
       (1) the conversion is based on the result of a public-
     private competition that includes a most efficient and cost 
     effective organization plan developed by such activity or 
     function; and
       (2) the Competitive Sourcing Official determines that, over 
     all performance periods stated in the solicitation of offers 
     for performance of the activity or function, the cost of 
     performance of the activity or function by a contractor would 
     be less costly to the Department of Defense by an amount that 
     equals or exceeds the lesser of--
       (A) 10 percent of the most efficient organization's 
     personnel-related costs for performance of that activity or 
     function by Federal employees; or
       (B) $10,000,000.
       (b) Exceptions.--(1) This section and subsections (a), (b), 
     and (c) of section 2461 of title 10, United States Code, 
     shall not apply to a commercial or industrial type function 
     of the Department of Defense that--
       (A) is included on the procurement list established 
     pursuant to section 2 of the Javits-Wagner-O'Day Act (41 
     U.S.C. 47);
       (B) 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
       (C) is planned to be converted to performance by a 
     qualified firm under at least 51 percent ownership by an 
     Indian tribe, as defined in section 4(e) of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     450b(e)), or a Native Hawaiian Organization, as defined in 
     section 8(a)(15) of the Small Business Act (15 U.S.C. 
     637(a)(15)).
       (2) This section shall not apply to depot contracts or 
     contracts for depot maintenance as provided in sections 2469 
     and 2474 of title 10, United States Code.
       (c) Treatment of Conversion.--The conversion of any 
     activity or function of the Department of Defense under the 
     authority provided by this section shall be credited toward 
     any competitive or outsourcing goal, target, or measurement 
     that may be established by statute, regulation, or policy and 
     is deemed to be awarded under the authority of, and in 
     compliance with, subsection (h) of section 2304 of title 10, 
     United States Code, for the competition or outsourcing of 
     commercial activities.


                          (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

[[Page H8506]]

     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) or TRICARE 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 persons with 
     disabilities 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. 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 2005 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. 8019. 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. 8020. 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. 8021. 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 a prime 
     contractor or a subcontractor at any tier that makes a 
     subcontract award to any subcontractor or supplier as defined 
     in 25 U.S.C. 1544 or a small business owned and controlled by 
     an individual or individuals defined under 25 U.S.C. 4221(9) 
     shall be considered a contractor for the purposes of being 
     allowed additional compensation under section 504 of the 
     Indian Financing Act of 1974 (25 U.S.C. 1544) whenever the 
     prime contract or subcontract amount is over $500,000 and 
     involves the expenditure of funds appropriated by an Act 
     making Appropriations for the Department of Defense with 
     respect to any fiscal year: Provided further, That 
     notwithstanding 41 U.S.C. 430, this section shall be 
     applicable to any Department of Defense acquisition of 
     supplies or services, including any contract and any 
     subcontract at any tier for acquisition of commercial items 
     produced or manufactured, in whole or in part by any 
     subcontractor or supplier defined in 25 U.S.C. 1544 or a 
     small business owned and controlled by an individual or 
     individuals defined under 25 U.S.C. 4221(9): Provided 
     further, That businesses certified as 8(a) by the Small 
     Business Administration pursuant to section 8(a)(15) of 
     Public Law 85-536, as amended, shall have the same status as 
     other program participants under section 602 of Public Law 
     100-656, 102 Stat. 3825 (Business Opportunity Development 
     Reform Act of 1988) for purposes of contracting with agencies 
     of the Department of Defense.
       Sec. 8022. 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 30 months after 
     initiation of such study for a multi-function activity.
       Sec. 8023. 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. 8024. 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. 8025. (a) Of the funds for the procurement of supplies 
     or services appropriated by this Act and hereafter, 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 and hereafter, 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. 8026. 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. 8027. 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.


                     (including transfer of funds)

       Sec. 8028. (a) Of the funds made available in this Act, not 
     less than $32,758,000 shall be available for the Civil Air 
     Patrol Corporation, of which--
       (1) $21,432,000 shall be available from ``Operation and 
     Maintenance, Air Force'' to support Civil Air Patrol 
     Corporation operation and maintenance, readiness, counterdrug 
     activities, and drug demand reduction activities involving 
     youth programs;
       (2) $10,540,000 shall be available from ``Aircraft 
     Procurement, Air Force''; and
       (3) $786,000 shall be available from ``Other Procurement, 
     Air Force'' for vehicle procurement.
       (b) Notwithstanding section 9445 of title 10, United States 
     Code, or any other provision of law, of the funds made 
     available to the Civil Air Patrol Corporation in this Act 
     under the heading ``Aircraft Procurement, Air Force'', not 
     more than $770,000 may be transferred by the Secretary of the 
     Air Force to the ``Operation and Maintenance, Air Force'' 
     appropriation to be merged with and to be available for 
     administrative expenses incurred by the Air Force in the 
     administration of Civil Air Patrol Corporation. Funds so 
     transferred shall be available for the same period as the 
     appropriation to which transferred.
       (c) The Secretary of the Air Force should waive 
     reimbursement for any funds used by the Civil Air Patrol for 
     counter-drug activities in support of Federal, State, and 
     local government agencies.
       Sec. 8029. (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) 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.

[[Page H8507]]

       (c) Notwithstanding any other provision of law, none of the 
     funds available to the department from any source during 
     fiscal year 2004 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 2004, 
     not more than 6,321 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 1,050 staff years may be funded for 
     the defense studies and analysis FFRDCs.
       (e) The Secretary of Defense shall, with the submission of 
     the department's fiscal year 2005 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.
       (f) Notwithstanding any other provision of this Act, the 
     total amount appropriated in this Act for FFRDCs is hereby 
     reduced by $74,200,000.
       Sec. 8030. 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 the enactment of this Act.
       Sec. 8031. For the purposes of this Act, the term 
     ``congressional defense committees'' means the Armed Services 
     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 Defense of the Committee on Appropriations of 
     the House of Representatives.
       Sec. 8032. 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. 8033. (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 the Congress a 
     report on the amount of Department of Defense purchases from 
     foreign entities in fiscal year 2004. Such report shall 
     separately indicate the dollar value of items for which the 
     Buy American Act was waived pursuant to any agreement 
     described in subsection (a)(2), the Trade Agreement Act of 
     1979 (19 U.S.C. 2501 et seq.), or any international agreement 
     to which the United States is a party.
       (c) For purposes of this section, the term ``Buy American 
     Act'' means title III of the Act entitled ``An Act making 
     appropriations for the Treasury and Post Office Departments 
     for the fiscal year ending June 30, 1934, and for other 
     purposes'', approved March 3, 1933 (41 U.S.C. 10a et seq.).
       Sec. 8034. 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. 8035. Amounts deposited during the current fiscal year 
     to the special account established under 40 U.S.C. 
     572(b)(5)(A) 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. 
     572(b)(5)(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. 8036. 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. 8037. Notwithstanding any other provision of law, 
     funds available for ``Drug Interdiction and Counter-Drug 
     Activities, Defense'' may be obligated for the Young Marines 
     program.


                     (including transfer of funds)

       Sec. 8038. During the current fiscal year, amounts 
     contained in the Department of Defense Overseas Military 
     Facility Investment Recovery Account established by section 
     2921(c)(1) of the National Defense Authorization Act of 1991 
     (Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
     until expended for the payments specified by section 
     2921(c)(2) of that Act.
       Sec. 8039. (a) In General.--Notwithstanding any other 
     provision of law, the Secretary of the Air Force may convey 
     at no cost to the Air Force, without consideration, to Indian 
     tribes located in the States of North Dakota, South Dakota, 
     Montana, and Minnesota relocatable military housing units 
     located at Grand Forks Air Force Base and Minot Air Force 
     Base that are excess to the needs of the Air Force.
       (b) Processing of Requests.--The Secretary of the Air Force 
     shall convey, at no cost to the Air Force, military housing 
     units under subsection (a) in accordance with the request for 
     such units that are submitted to the Secretary by the 
     Operation Walking Shield Program on behalf of Indian tribes 
     located in the States of North Dakota, South Dakota, Montana, 
     and Minnesota.
       (c) Resolution of Housing Unit Conflicts.--The Operation 
     Walking Shield program shall resolve any conflicts among 
     requests of Indian tribes for housing units under subsection 
     (a) before submitting requests to the Secretary of the Air 
     Force under subsection (b).
       (d) 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 Act of 1994 (Public Law 103-454; 108 Stat. 4792; 25 
     U.S.C. 479a-1).
       Sec. 8040. 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 
     $250,000.
       Sec. 8041. (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 2005 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2005 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 2005 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. 8042. 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, 2005: 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: 
     Provided further, That any funds appropriated or transferred 
     to the Central Intelligence Agency for advanced research and 
     development acquisition, for agent operations, and for covert 
     action programs authorized by the President under section 503 
     of the National Security Act of 1947, as amended, shall 
     remain available until September 30, 2005.
       Sec. 8043. 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. 8044. Of the funds appropriated to the Department of 
     Defense under the heading ``Operation and Maintenance, 
     Defense-Wide'', not less than $10,000,000 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.

[[Page H8508]]

       Sec. 8045. (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. 8046. 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. 8047. (a) Except as provided in subsection (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. 8048. 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.


                             (rescissions)

       Sec. 8049. Of the funds appropriated in Department of 
     Defense Appropriations Acts, the following funds are hereby 
     rescinded from the following accounts and programs in the 
     specified amounts:
       ``Shipbuilding and Conversion, Navy, 2001/2005'', 
     $3,835,000;
       ``Shipbuilding and Conversion, Navy, 2002/2006'', 
     $9,336,000;
       ``Aircraft Procurement, Army, 2003/2005'', $47,100,000;
       ``Weapons and Tracked Combat Vehicles, Army, 2003/2005'', 
     $30,000,000;
       ``Procurement of Ammunition, Army, 2003/2005'', 
     $36,000,000;
       ``Other Procurement, Army, 2003/2005'', $8,000,000;
       ``Other Procurement, Air Force, 2003/2005'', $10,000,000;
       ``Procurement, Defense-Wide, 2003/2005'', $48,000,000;
       ``Research, Development, Test and Evaluation, Army, 2003/
     2004'', $2,989,000;
       ``Research, Development, Test and Evaluation, Defense-Wide, 
     2003/2004'', $25,000,000; and
       ``National Defense Sealift Fund'', $105,300,000.
       Sec. 8050. 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. 8051. 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. 8052. 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. 8053. Funds appropriated in this Act for operation and 
     maintenance of the Military Departments, Combatant 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 
     Combatant 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. 8054. 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, 2002 
     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.
       Sec. 8055. (a) Limitation on Pentagon Renovation Costs.--
     Not later than the date each year on which the President 
     submits to Congress the budget under section 1105 of title 
     31, United States Code, the Secretary of Defense shall submit 
     to Congress a certification that the total cost for the 
     planning, design, construction, and installation of equipment 
     for the renovation of wedges 2 through 5 of the Pentagon 
     Reservation, cumulatively, will not exceed four times the 
     total cost for the planning, design, construction, and 
     installation of equipment for the renovation of wedge 1.
       (b) Annual Adjustment.--For purposes of applying the 
     limitation in subsection (a), the Secretary shall adjust the 
     cost for the renovation of wedge 1 by any increase or 
     decrease in costs attributable to economic inflation, based 
     on the most recent economic assumptions issued by the Office 
     of Management and Budget for use in preparation of the budget 
     of the United States under section 1104 of title 31, United 
     States Code.
       (c) Exclusion of Certain Costs.--For purposes of 
     calculating the limitation in subsection (a), the total cost 
     for wedges 2 through 5 shall not include--
       (1) any repair or reconstruction cost incurred as a result 
     of the terrorist attack on the Pentagon that occurred on 
     September 11, 2001;
       (2) any increase in costs for wedges 2 through 5 
     attributable to compliance with new requirements of Federal, 
     State, or local laws; and
       (3) any increase in costs attributable to additional 
     security requirements that the Secretary of Defense considers 
     essential to provide a safe and secure working environment.
       (d) Certification Cost Reports.--As part of the annual 
     certification under subsection (a), the Secretary shall 
     report the projected cost (as of the time of the 
     certification) for--
       (1) the renovation of each wedge, including the amount 
     adjusted or otherwise excluded for such wedge under the 
     authority of paragraphs (2) and (3) of subsection (c) for the 
     period covered by the certification; and
       (2) the repair and reconstruction of wedges 1 and 2 in 
     response to the terrorist attack on the Pentagon that 
     occurred on September 11, 2001.
       (e) Duration of Certification Requirement.--The requirement 
     to make an annual certification under subsection (a) shall 
     apply until the Secretary certifies to Congress that the 
     renovation of the Pentagon Reservation is completed.
       Sec. 8056. Notwithstanding any other provision of law, that 
     not more than 35 percent of funds provided in this Act for 
     environmental remediation may be obligated under indefinite 
     delivery/indefinite quantity contracts with a total contract 
     value of $130,000,000 or higher.
       Sec. 8057. (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. 8058. 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. 8059. None of the funds appropriated by this Act may 
     be used for the procurement of ball

[[Page H8509]]

     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: Provided further, That this 
     restriction shall not apply to the purchase of ``commercial 
     items'', as defined by section 4(12) of the Office of Federal 
     Procurement Policy Act, except that the restriction shall 
     apply to ball or roller bearings purchased as end items.
       Sec. 8060. 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, and 
     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. 8061. 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. 8062. 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 or hereafter 
     in any other Act.
       Sec. 8063. 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 (as defined in section 381(d) of 
     title 10, United States Code) 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. 8064. None of the funds made available in this or any 
     other Act may be used to pay the salary of any officer or 
     employee of the Department of Defense who approves or 
     implements the transfer of administrative responsibilities or 
     budgetary resources of any program, project, or activity 
     financed by this Act to the jurisdiction of another Federal 
     agency not financed by this Act without the express 
     authorization of Congress: Provided, That this limitation 
     shall not apply to transfers of funds expressly provided for 
     in Defense Appropriations Acts, or provisions of Acts 
     providing supplemental appropriations for the Department of 
     Defense.
       Sec. 8065. (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. 8066. To the extent authorized by subchapter VI of 
     chapter 148 of title 10, United States Code, the Secretary of 
     Defense may 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, Armed Services, 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, United States Code.
       Sec. 8067. 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. 8068. (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.


                     (including transfer of funds)

       Sec. 8069. During the current fiscal year, no more than 
     $30,000,000 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. 8070. 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.
       Sec. 8071. Funds appropriated in title II of this Act and 
     for the Defense Health Program in title VI of this Act for 
     supervision and administration costs for facilities 
     maintenance and repair, minor construction, or design 
     projects, or any planning studies, environmental assessments, 
     or similar activities related to installation support 
     functions, 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. 8072. (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. 8073. 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.

[[Page H8510]]

       Sec. 8074. 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. 8075. 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. 8076. (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. 8077. (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 the unit has 
     committed a gross violation of human rights, unless all 
     necessary corrective steps have been taken.
       (b) Monitoring.--The Secretary of Defense, in consultation 
     with the Secretary of State, shall ensure that prior to a 
     decision to conduct any training program referred to in 
     subsection (a), full consideration is given to all credible 
     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. 8078. 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))).
       Sec. 8079. None of the funds appropriated or made available 
     in this Act to the Department of the Navy shall be used to 
     develop, lease or procure the T-AKE class of ships unless the 
     main propulsion diesel engines and propulsors are 
     manufactured in the United States by a domestically operated 
     entity: Provided, That the Secretary of Defense may waive 
     this restriction on a case-by-case basis by certifying in 
     writing to the Committees on Appropriations of the House of 
     Representatives and the Senate that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes or there exists a significant cost or 
     quality difference.
       Sec. 8080. None of the funds appropriated or otherwise made 
     available by this or other Department of Defense 
     Appropriations Acts may be obligated or expended for the 
     purpose of performing repairs or maintenance to military 
     family housing units of the Department of Defense, including 
     areas in such military family housing units that may be used 
     for the purpose of conducting official Department of Defense 
     business.
       Sec. 8081. Notwithstanding any other provision of law, 
     funds appropriated in this Act under the heading ``Research, 
     Development, Test and Evaluation, Defense-Wide'' for any 
     advanced concept technology demonstration project may only be 
     obligated 30 days after a report, including a description of 
     the project, the planned acquisition and transition strategy 
     and its estimated annual and total cost, has been provided in 
     writing to the congressional defense committees: Provided, 
     That the Secretary of Defense may waive this restriction on a 
     case-by-case basis by certifying to the congressional defense 
     committees that it is in the national interest to do so.
       Sec. 8082. The Secretary of Defense shall provide a 
     classified quarterly report, beginning December 15, 2003, to 
     the House and Senate Appropriations Committees, Subcommittees 
     on Defense on certain matters as directed in the classified 
     annex accompanying this Act.
       Sec. 8083. During the current fiscal year, refunds 
     attributable to the use of the Government travel card, 
     refunds attributable to the use of the Government Purchase 
     Card 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. 8084. (a) Registering Financial Management Information 
     Technology Systems With DOD Chief Information Officer.--None 
     of the funds appropriated in this Act may be used for a 
     mission critical or mission essential financial management 
     information technology system (including a system funded by 
     the defense working capital fund) that is not registered with 
     the Chief Information Officer of the Department of Defense. A 
     system shall be considered to be registered with that officer 
     upon the furnishing to that officer of notice of the system, 
     together with such information concerning the system as the 
     Secretary of Defense may prescribe. A financial management 
     information technology system shall be considered a mission 
     critical or mission essential information technology system 
     as defined by the Under Secretary of Defense (Comptroller).
       (b) Certifications as to Compliance With Financial 
     Management Modernization Plan.--
       (1) During the current fiscal year, a financial management 
     automated information system, a mixed information system 
     supporting financial and non-financial systems, or a system 
     improvement of more than $1,000,000 may not receive Milestone 
     A approval, Milestone B approval, or full rate production, or 
     their equivalent, within the Department of Defense until the 
     Under Secretary of Defense (Comptroller) certifies, with 
     respect to that milestone, that the system is being developed 
     and managed in accordance with the Department's Financial 
     Management Modernization Plan. The Under Secretary of Defense 
     (Comptroller) may require additional certifications, as 
     appropriate, with respect to any such system.
       (2) The Chief Information Officer shall provide the 
     congressional defense committees timely notification of 
     certifications under paragraph (1).
       (c) Certifications as to Compliance With Clinger-Cohen 
     Act.--
       (1) During the current fiscal year, a major automated 
     information system may not receive Milestone A approval, 
     Milestone B approval, or full rate production approval, or 
     their equivalent, within the Department of Defense until the 
     Chief Information Officer certifies, with respect to that 
     milestone, that the system is being developed in accordance 
     with the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.). 
     The Chief Information Officer may require additional 
     certifications, as appropriate, with respect to any such 
     system.
       (2) The Chief Information Officer shall provide the 
     congressional defense committees timely notification of 
     certifications under paragraph (1). Each such notification 
     shall include, at a minimum, the funding baseline and 
     milestone schedule for each system covered by such a 
     certification and confirmation that the following steps have 
     been taken with respect to the system:
       (A) Business process reengineering.
       (B) An analysis of alternatives.
       (C) An economic analysis that includes a calculation of the 
     return on investment.
       (D) Performance measures.
       (E) An information assurance strategy consistent with the 
     Department's Global Information Grid.
       (d) Definitions.--For purposes of this section:
       (1) The term ``Chief Information Officer'' means the senior 
     official of the Department of Defense designated by the 
     Secretary of Defense pursuant to section 3506 of title 44, 
     United States Code.
       (2) The term ``information technology system'' has the 
     meaning given the term ``information technology'' in section 
     5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
       Sec. 8085. During the current fiscal year, none of the 
     funds available to the Department of Defense may be used to 
     provide support to another department or agency of the United 
     States if such department or agency is more than 90 days in 
     arrears in making payment to the Department of Defense for 
     goods or services previously provided to such department or 
     agency on a reimbursable basis: Provided, That this 
     restriction shall not apply if the department is authorized 
     by law to provide support to such department or agency on a 
     nonreimbursable basis, and is providing the requested support 
     pursuant to such authority: 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. 8086. None of the funds provided in this Act may be 
     used to transfer to any nongovernmental entity ammunition 
     held by the Department of Defense that has a center-fire 
     cartridge and a United States military nomenclature 
     designation of ``armor penetrator'', ``armor piercing (AP)'', 
     ``armor piercing incendiary (API)'', or

[[Page H8511]]

     ``armor-piercing incendiary-tracer (API-T)'', except to an 
     entity performing demilitarization services for the 
     Department of Defense under a contract that requires the 
     entity to demonstrate to the satisfaction of the Department 
     of Defense that armor piercing projectiles are either: (1) 
     rendered incapable of reuse by the demilitarization process; 
     or (2) used to manufacture ammunition pursuant to a contract 
     with the Department of Defense or the manufacture of 
     ammunition for export pursuant to a License for Permanent 
     Export of Unclassified Military Articles issued by the 
     Department of State.
       Sec. 8087. Notwithstanding any other provision of law, the 
     Chief of the National Guard Bureau, or his designee, may 
     waive payment of all or part of the consideration that 
     otherwise would be required under 10 U.S.C. 2667, in the case 
     of a lease of personal property for a period not in excess of 
     1 year to any organization specified in 32 U.S.C. 508(d), or 
     any other youth, social, or fraternal non-profit organization 
     as may be approved by the Chief of the National Guard Bureau, 
     or his designee, on a case-by-case basis.
       Sec. 8088. None of the funds appropriated by this Act shall 
     be used for the support of any nonappropriated funds activity 
     of the Department of Defense that procures malt beverages and 
     wine with nonappropriated funds for resale (including such 
     alcoholic beverages sold by the drink) on a military 
     installation located in the United States unless such malt 
     beverages and wine are procured within that State, or in the 
     case of the District of Columbia, within the District of 
     Columbia, in which the military installation is located: 
     Provided, That in a case in which the military installation 
     is located in more than one State, purchases may be made in 
     any State in which the installation is located: Provided 
     further, That such local procurement requirements for malt 
     beverages and wine shall apply to all alcoholic beverages 
     only for military installations in States which are not 
     contiguous with another State: Provided further, That 
     alcoholic beverages other than wine and malt beverages, in 
     contiguous States and the District of Columbia shall be 
     procured from the most competitive source, price and other 
     factors considered.
       Sec. 8089. (a) The Department of Defense is authorized to 
     enter into agreements with the Department of Veterans Affairs 
     and federally-funded health agencies providing services to 
     Native Hawaiians for the purpose of establishing a 
     partnership similar to the Alaska Federal Health Care 
     Partnership, in order to maximize Federal resources in the 
     provision of health care services by federally-funded health 
     agencies, applying telemedicine technologies. For the purpose 
     of this partnership, Native Hawaiians shall have the same 
     status as other Native Americans who are eligible for the 
     health care services provided by the Indian Health Service.
       (b) The Department of Defense is authorized to develop a 
     consultation policy, consistent with Executive Order No. 
     13084 (issued May 14, 1998), with Native Hawaiians for the 
     purpose of assuring maximum Native Hawaiian participation in 
     the direction and administration of governmental services so 
     as to render those services more responsive to the needs of 
     the Native Hawaiian community.
       (c) For purposes of this section, the term ``Native 
     Hawaiian'' means any individual who is a descendant of the 
     aboriginal people who, prior to 1778, occupied and exercised 
     sovereignty in the area that now comprises the State of 
     Hawaii.
       Sec. 8090. Funds available to the Department of Defense for 
     the Global Positioning System during the current fiscal year 
     may be used to fund civil requirements associated with the 
     satellite and ground control segments of such system's 
     modernization program.


                     (including transfer of funds)

       Sec. 8091. (a) Of the amounts appropriated in this Act 
     under the heading, ``Research, Development, Test and 
     Evaluation, Defense-Wide'', $48,000,000 shall remain 
     available until expended: Provided, That notwithstanding any 
     other provision of law, the Secretary of Defense is 
     authorized to transfer such funds to other activities of the 
     Federal Government.
       (b) Of the amounts appropriated in this Act under the 
     heading, ``Operation and Maintenance, Army'', $177,000,000 
     shall remain available until expended: Provided, That 
     notwithstanding any other provision of law, the Secretary of 
     Defense is authorized to transfer such funds to other 
     activities of the Federal Government: Provided further, That 
     the Secretary of Defense is authorized to enter into and 
     carry out contracts for the acquisition of real property, 
     construction, personal services, and operations related to 
     projects described in further detail in the Classified Annex 
     accompanying the Department of Defense Appropriations Act, 
     2004, consistent with the terms and conditions set forth 
     therein: Provided further, That contracts entered into under 
     the authority of this section may provide for such 
     indemnification as the Secretary determines to be necessary: 
     Provided further, That projects authorized by this section 
     shall comply with applicable Federal, State, and local law to 
     the maximum extent consistent with the national security, as 
     determined by the Secretary of Defense.
       Sec. 8092. Section 8106 of the Department of Defense 
     Appropriations Act, 1997 (titles I through VIII of the matter 
     under subsection 101(b) of Public Law 104-208; 110 Stat. 
     3009-111; 10 U.S.C. 113 note) shall continue in effect to 
     apply to disbursements that are made by the Department of 
     Defense in fiscal year 2004.
       Sec. 8093. In addition to amounts provided elsewhere in 
     this Act, $3,800,000 is hereby appropriated for ``Defense 
     Health Program'', to remain available for obligation until 
     expended: Provided, That notwithstanding any other provision 
     of law, $2,000,000 shall be available only for a grant to the 
     Fisher House Foundation, Inc., only for the construction and 
     furnishing of additional Fisher Houses to meet the needs of 
     military family members when confronted with the illness or 
     hospitalization of an eligible military beneficiary, and 
     notwithstanding any other provision of law, $1,800,000 shall 
     be available only for deposit into the Army, Navy, and Air 
     Force Fisher House Non-appropriated Fund Instrumentalities 
     and shall be used in support and upkeep of existing Fisher 
     Houses.
       Sec. 8094. Amounts appropriated in titles II and IV are 
     hereby reduced by $504,500,000 to reflect savings 
     attributable to improvements in the management of 
     professional support services, surveys and analysis, and 
     contracted engineering and technical support, and to limit 
     excessive growth in the procurement of advisory and 
     assistance services, to be distributed as follows:
       (1) From ``Operation and Maintenance, Army'', $48,500,000;
       (2) From ``Operation and Maintenance, Navy'', $84,400,000;
       (3) From ``Operation and Maintenance, Marine Corps'', 
     $4,300,000;
       (4) From ``Operation and Maintenance, Air Force'', 
     $196,300,000;
       (5) From ``Operation and Maintenance, Defense-Wide'', 
     $91,000,000;
       (6) From ``Research, Development, Test and Evaluation, 
     Navy'', $40,000,000; and
       (7) From ``Research, Development, Test and Evaluation, 
     Defense-Wide'', $40,000,000:

     Provided, That these reductions shall be applied 
     proportionally to each budget activity, activity group and 
     subactivity group and each program, project and activity 
     within each appropriations account.


                     (including transfer of funds)

       Sec. 8095. Of the amounts appropriated in this Act under 
     the heading ``Research, Development, Test and Evaluation, 
     Defense-Wide'', $144,803,000 shall be made available for the 
     Arrow missile defense program: Provided, That of this amount, 
     $80,000,000 shall be available for the purpose of producing 
     Arrow missile components in the United States and Arrow 
     missile components and missiles in Israel to meet Israel's 
     defense requirements, consistent with each nation's laws, 
     regulations and procedures: Provided further, That funds made 
     available under this provision for production of missiles and 
     missile components may be transferred to appropriations 
     available for the procurement of weapons and equipment, to be 
     merged with and to be available for the same time period and 
     the same purposes as the appropriation to which transferred: 
     Provided further, That the transfer authority provided under 
     this provision is in addition to any other transfer authority 
     contained in this Act.


                     (including transfer of funds)

       Sec. 8096. In addition to amounts provided elsewhere in 
     this Act, $60,000,000 is hereby appropriated for ``Aircraft 
     Procurement, Navy'': Provided, That these funds shall be 
     available only for transfer to the Coast Guard for mission 
     essential equipment for Coast Guard HC-130J aircraft.


                     (including transfer of funds)

       Sec. 8097. Of the amounts appropriated in this Act under 
     the heading ``Shipbuilding and Conversion, Navy'', 
     $635,502,000 shall be available until September 30, 2004, to 
     fund prior year shipbuilding cost increases: Provided, That 
     upon enactment of this Act, the Secretary of the Navy shall 
     transfer such funds to the following appropriations in the 
     amounts specified: Provided further, That the amounts 
     transferred shall be merged with and be available for the 
     same purposes as the appropriations to which transferred:
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1996/04'':
       LPD-17 Amphibious Transport Dock Ship Program, $95,300,000.
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1998/04'':
       New SSN, $81,060,000.
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1999/04'':
       DDG-51 Destroyer Program, $44,420,000;
       New SSN, $156,978,000;
       LPD-17 Amphibious Transport Dock Ship Program, $51,100,000.
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2000/04'':
       DDG-51 Destroyer Program, $24,510,000;
       LPD-17 Amphibious Transport Dock Ship Program, 
     $112,778,000.
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2001/04'':
       DDG-51 Destroyer Program, $6,984,000;
       New SSN, $62,372,000.
       Sec. 8098. The Secretary of the Navy may settle, or 
     compromise, and pay any and all admiralty claims under 10 
     U.S.C. 7622 arising out of the collision involving the U.S.S. 
     GREENEVILLE and the EHIME MARU, in any amount and without 
     regard to the monetary limitations in subsections (a) and (b) 
     of that section: Provided, That such payments shall be made 
     from funds available to the Department of the Navy for 
     operation and maintenance.
       Sec. 8099. Notwithstanding any other provision of law or 
     regulation, the Secretary of Defense may exercise the 
     provisions of 38 U.S.C. 7403(g) for occupations listed in 38 
     U.S.C. 7403(a)(2) as well as the following:
       Pharmacists, Audiologists, and Dental Hygienists.
       (A) The requirements of 38 U.S.C. 7403(g)(1)(A) shall 
     apply.
       (B) The limitations of 38 U.S.C. 7403(g)(1)(B) shall not 
     apply.
       Sec. 8100. Funds appropriated by this Act, or made 
     available by the transfer of funds in this Act, for 
     intelligence activities are deemed to be specifically 
     authorized by the Congress for purposes of section 504 of the 
     National Security Act

[[Page H8512]]

     of 1947 (50 U.S.C. 414) during fiscal year 2004 until the 
     enactment of the Intelligence Authorization Act for fiscal 
     year 2004.
       Sec. 8101. The total amount appropriated in title II is 
     hereby reduced by $200,000,000 to reduce cost growth in 
     information technology development, to be derived as follows:
       (1) From ``Operation and Maintenance, Army'', $40,000,000.
       (2) From ``Operation and Maintenance, Navy'', $60,000,000.
       (3) From ``Operation and Maintenance, Air Force'', 
     $60,000,000.
       (4) From ``Operation and Maintenance, Defense-Wide'', 
     $40,000,000.
       Sec. 8102. In addition to funds made available elsewhere in 
     this Act $5,500,000 is hereby appropriated and shall remain 
     available until expended to provide assistance, by grant or 
     otherwise (such as, but not limited to, the provision of 
     funds for repairs, maintenance, construction, and/or for the 
     purchase of information technology, text books, teaching 
     resources), to public schools that have unusually high 
     concentrations of special needs military dependents enrolled: 
     Provided, That in selecting school systems to receive such 
     assistance, special consideration shall be given to school 
     systems in States that are considered overseas assignments, 
     and all schools within these school systems shall be eligible 
     for assistance: Provided further, That up to $2,000,000 shall 
     be available for the Department of Defense to establish a 
     non-profit trust fund to assist in the public-private funding 
     of public school repair and maintenance projects, or provide 
     directly to non-profit organizations who in return will use 
     these monies to provide assistance in the form of repair, 
     maintenance, or renovation to public school systems that have 
     high concentrations of special needs military dependents and 
     are located in States that are considered overseas 
     assignments, and of which 2 percent shall be available to 
     support the administration and execution of the funds: 
     Provided further, That to the extent a federal agency 
     provides this assistance, by contract, grant, or otherwise, 
     it may accept and expend non-federal funds in combination 
     with these federal funds to provide assistance for the 
     authorized purpose, if the non-federal entity requests such 
     assistance and the non-federal funds are provided on a 
     reimbursable basis.
       Sec. 8103. None of the funds in this Act may be used to 
     initiate a new start program without prior notification to 
     the Office of Secretary of Defense and the congressional 
     defense committees.
       Sec. 8104. The amounts appropriated in title II are hereby 
     reduced by $372,000,000 to reflect cash balance and rate 
     stabilization adjustments in Department of Defense Working 
     Capital Funds, as follows:
       (1) From ``Operation and Maintenance, Army'', $107,000,000.
       (2) From ``Operation and Maintenance, Navy'', $45,000,000.
       (3) From ``Operation and Maintenance, Air Force'', 
     $220,000,000.
       Sec. 8105. The amount appropriated in title II for 
     ``Operation and Maintenance, Navy'' is hereby reduced by 
     $44,000,000 to reduce excess funded carryover.
       Sec. 8106. (a) In addition to the amounts provided 
     elsewhere in this Act, the amount of $5,500,000 is hereby 
     appropriated to the Department of Defense for ``Operation and 
     Maintenance, Army National Guard''. Such amount shall be made 
     available to the Secretary of the Army only to make a grant 
     in the amount of $5,500,000 to the entity specified in 
     subsection (b) to facilitate access by veterans to 
     opportunities for skilled employment in the construction 
     industry.
       (b) The entity referred to in subsection (a) is the Center 
     for Military Recruitment, Assessment and Veterans Employment, 
     a nonprofit labor-management co-operation committee provided 
     for by section 302(c)(9) of the Labor-Management Relations 
     Act, 1947 (29 U.S.C. 186(c)(9)), for the purposes set forth 
     in section 6(b) of the Labor Management Cooperation Act of 
     1978 (29 U.S.C. 175a note).
       Sec. 8107. Financing and Fielding of Key Army 
     Capabilities.--The Department of Defense and the Department 
     of the Army shall make future budgetary and programming plans 
     to fully finance the Non-Line of Sight (NLOS) Objective Force 
     cannon and resupply vehicle program in order to field this 
     system in the 2008 timeframe. As an interim capability to 
     enhance Army lethality, survivability, and mobility for 
     light and medium forces before complete fielding of the 
     Objective Force, the Army shall ensure that budgetary and 
     programmatic plans will provide for no fewer than six 
     Stryker Brigade Combat Teams to be fielded between 2003 
     and 2008.
       Sec. 8108. Of the funds made available in this Act, not 
     less than $40,600,000 shall be available to maintain an 
     attrition reserve force of 18 B-52 aircraft, of which 
     $3,800,000 shall be available from ``Military Personnel, Air 
     Force'', $25,100,000 shall be available from ``Operation and 
     Maintenance, Air Force'', and $11,700,000 shall be available 
     from ``Aircraft Procurement, Air Force'': Provided, That the 
     Secretary of the Air Force shall maintain a total force of 94 
     B-52 aircraft, including 18 attrition reserve aircraft, 
     during fiscal year 2004: Provided further, That the Secretary 
     of Defense shall include in the Air Force budget request for 
     fiscal year 2005 amounts sufficient to maintain a B-52 force 
     totaling 94 aircraft.
       Sec. 8109. Of the funds made available under the heading 
     ``Operation and Maintenance, Air Force'', $8,000,000 shall be 
     available to realign railroad track on Elmendorf Air Force 
     Base and Fort Richardson: Provided, That the Secretary of the 
     Air Force is authorized, using funds available under the 
     heading ``Operation and Maintenance, Air Force'', to complete 
     a phased repair project, which repairs may include upgrades 
     and additions, to the infrastructure of the operational 
     ranges managed by the Air Force in Alaska. The total cost of 
     such phased projects shall not exceed $26,000,000.


                          (Transfer of Funds)

       Sec. 8110. Of the amounts appropriated in Public Law 107-
     206 under the heading ``Defense Emergency Response Fund'', an 
     amount up to the fair market value of the leasehold interest 
     in adjacent properties necessary for the force protection 
     requirements of Tooele Army Depot, Utah, may be made 
     available to resolve any property disputes associated with 
     Tooele Army Depot, Utah, and to acquire such leasehold 
     interest as required: Provided, That none of these funds may 
     be used to acquire fee title to the properties.
       Sec. 8111. Up to $3,000,000 of the funds appropriated under 
     the heading ``Operation and Maintenance, Navy'' in this Act 
     for the Pacific Missile Range Facility may be made available 
     to contract for the repair, maintenance, and operation of 
     adjacent off-base water, drainage, and flood control systems, 
     electrical upgrade to support additional missions critical to 
     base operations, and support for a range footprint expansion 
     to further guard against encroachment.
       Sec. 8112. In addition to the amounts appropriated or 
     otherwise made available in this Act, $34,950,000 is hereby 
     appropriated to the Department of Defense: Provided, That the 
     Secretary of Defense shall make grants in the amount of 
     $8,500,000 to the Fort Benning Infantry Museum; $6,000,000 to 
     the University of South Florida for establishment and 
     operation of the Joint Military Science Leadership Program; 
     $5,000,000 to the American Red Cross for Armed Forces 
     Emergency Services; $3,500,000 to the National D-Day Museum; 
     $3,000,000 to the Chicago Park District for renovation of the 
     Broadway Armory; $2,100,000 to the National Guard Youth 
     Foundation; $2,100,000 to the Intrepid Sea-Air-Space 
     Foundation; $2,000,000 to the Army Museum of the Southwest at 
     Fort Sill, Oklahoma; $1,500,000 to the Tredegar National 
     Civil War Center; $1,000,000 to the Philadelphia Korean War 
     Memorial; and $250,000 to the CSS Alabama Association.
       Sec. 8113. None of the funds appropriated in this Act under 
     the heading ``Overseas Contingency Operations Transfer 
     Account'' may be transferred or obligated for Department of 
     Defense expenses not directly related to the conduct of 
     overseas contingencies: Provided, That the Secretary of 
     Defense shall submit a report no later than 30 days after the 
     end of each fiscal quarter to the Committees on 
     Appropriations of the Senate and House of Representatives 
     that details any transfer of funds from the ``Overseas 
     Contingency Operations Transfer Account'': Provided further, 
     That the report shall explain any transfer for the 
     maintenance of real property, pay of civilian personnel, base 
     operations support, and weapon, vehicle or equipment 
     maintenance.
       Sec. 8114. 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 fiscal year, and the 1 
     percent limitation shall apply to the total amount of the 
     appropriation.
       Sec. 8115. The budget of the President for fiscal year 2005 
     submitted to the Congress pursuant to section 1105 of title 
     31, United States Code shall include separate budget 
     justification documents for costs of United States Armed 
     Forces' participation in contingency operations for the 
     Military Personnel accounts, the Operation and Maintenance 
     accounts, and the Procurement accounts: Provided, That these 
     documents shall include a description of the funding 
     requested for each contingency operation, for each military 
     service, to include all Active and Reserve components, and 
     for each appropriations account: Provided further, That these 
     documents shall include estimated costs for each element of 
     expense or object class, a reconciliation of increases and 
     decreases for each contingency operation, and programmatic 
     data including, but not limited to, troop strength for each 
     Active and Reserve component, and estimates of the major 
     weapons systems deployed in support of each contingency: 
     Provided further, That these documents shall include budget 
     exhibits OP-5 and OP-32 (as defined in the Department of 
     Defense Financial Management Regulation) for all contingency 
     operations for the budget year and the two preceding fiscal 
     years.
       Sec. 8116. None of the funds in this Act may be used for 
     research, development, test, evaluation, procurement or 
     deployment of nuclear armed interceptors of a missile defense 
     system.


                          (transfer of funds)

       Sec. 8117. Of the amounts appropriated in this Act under 
     the headings ``Research, Development, Test and Evaluation, 
     Navy'' and ``Operation and Maintenance, Defense-Wide'' 
     $56,200,000 shall be transferred to such appropriations 
     available to the Department of Defense as may be required to 
     carry out the intent of Congress as expressed in the 
     Classified Annex accompanying the Department of Defense 
     Appropriations Act, 2004, and amounts so transferred shall be 
     available for the same purposes and for the same time 
     period as the appropriations to which transferred.
       Sec. 8118. During the current fiscal year, section 2533a(f) 
     of Title 10, United States Code, shall not apply to any fish, 
     shellfish, or seafood product. This section is applicable to 
     contracts and subcontracts for the procurement of commercial 
     items notwithstanding section 34 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 430).
       Sec. 8119. Notwithstanding section 2465 of title 10 U.S.C., 
     the Secretary of the Navy may

[[Page H8513]]

     use funds appropriated in title II of this Act under the 
     heading, ``Operation and Maintenance, Navy'', to liquidate 
     the expenses incurred for private security guard services 
     performed at the Naval Support Unit, Saratoga Springs, New 
     York by Burns International Security Services, Albany, New 
     York in the amount of $29,323.35, plus accrued interest, if 
     any.
       Sec. 8120. Of the amounts provided in title II of this Act 
     under the heading, ``Operation and Maintenance, Defense-
     Wide'', $20,000,000 is available for the Regional Defense 
     Counter-terrorism Fellowship Program, to fund the education 
     and training of foreign military officers, ministry of 
     defense civilians, and other foreign security officials, to 
     include United States military officers and civilian 
     officials whose participation directly contributes to the 
     education and training of these foreign students.
       Sec. 8121. (a) Exchange Required.--In exchange for the 
     private property described in subsection (b), the Secretary 
     of the Interior shall convey to the Veterans Home of 
     California--Barstow, Veterans of Foreign Wars Post #385E (in 
     this section referred to as the ``recipient''), all right, 
     title, and interest of the United States in and to a parcel 
     of real property consisting of approximately one acre in the 
     Mojave National Preserve and designated (by section 8137 of 
     the Department of Defense Appropriations Act, 2002 (Public 
     Law 107-117; 115 Stat. 2278)) as a national memorial 
     commemorating United States participation in World War I and 
     honoring the American veterans of that war. Notwithstanding 
     the conveyance of the property under this subsection, the 
     Secretary shall continue to carry out the responsibilities of 
     the Secretary under such section 8137.
       (b) Consideration.--As consideration for the property to be 
     conveyed by the Secretary under subsection (a), Mr. and Mrs. 
     Henry Sandoz of Mountain Pass, California, have agreed to 
     convey to the Secretary a parcel of real property consisting 
     of approximately five acres, identified as parcel APN 569-
     051-44, and located in the west \1/2\ of the northeast \1/4\ 
     of the northwest \1/4\ of the northwest \1/4\ of section 11, 
     township 14 north, range 15 east, San Bernardino base and 
     meridian.
       (c) Equal Value Exchange; Appraisal.--The values of the 
     properties to be exchanged under this section shall be equal 
     or equalized as provided in subsection (d). The value of the 
     properties shall be determined through an appraisal performed 
     by a qualified appraiser in conformance with the Uniform 
     Appraisal Standards for Federal Land Acquisitions (Department 
     of Justice, December 2000).
       (d) Cash Equalization.--Any difference in the value of the 
     properties to be exchanged under this section shall be 
     equalized through the making of a cash equalization payment. 
     The Secretary shall deposit any cash equalization payment 
     received by the Secretary under this subsection in the Land 
     and Water Conservation Fund.
       (e) Reversionary Clause.--The conveyance under subsection 
     (a) shall be subject to the condition that the recipient 
     maintain the conveyed property as a memorial commemorating 
     United States participation in World War I and honoring the 
     American veterans of that war. If the Secretary determines 
     that the conveyed property is no longer being maintained as a 
     war memorial, the property shall revert to the ownership of 
     the United States.
       (f) Boundary Adjustment; Administration of Acquired Land.--
     The boundaries of the Mojave National Preserve shall be 
     adjusted to reflect the land exchange required by this 
     section. The property acquired by the Secretary under this 
     section shall become part of the Mojave National Preserve and 
     be administered in accordance with the laws, rules, and 
     regulations generally applicable to the Mojave National 
     Preserve.
       Sec. 8122. 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: Provided, That the Air Force shall allow the 53rd 
     Weather Reconnaissance Squadron to perform other missions in 
     support of national defense requirements during the non-
     hurricane season.
       Sec. 8123. The Secretary of the Air Force shall convey, 
     without consideration, to the Inland Valley Development 
     Agency all right, title, and interest of the United States in 
     and to certain parcels of real property, including 
     improvements thereon, located in San Bernardino, California, 
     that consist of approximately 39 acres and are leased, as of 
     June 1, 2003, by the Secretary to the Defense Finance and 
     Accounting Service. The conveyance shall be subject to the 
     condition that the Inland Valley Development Agency and the 
     Director of the Defense Finance and Accounting Service enter 
     into a lease-back agreement, acceptable to the Director, for 
     premises required by the Director for support operations 
     conducted by the Defense Finance and Accounting Service.
       Sec. 8124. Notwithstanding the provisions of section 2401 
     of title 10, United States Code, the Secretary of the Navy is 
     authorized to enter into a contract for the charter for a 
     period through fiscal year 2008, of the vessel, RV CORY 
     CHOUEST (United States Official Number 933435) in support of 
     the Surveillance Towed Array Sensor (SURTASS) program: 
     Provided, That funding for this lease shall be from within 
     funds provided in this Act and future appropriations Acts.
       Sec. 8125. In addition to the amounts appropriated or 
     otherwise made available elsewhere in this Act, and 
     notwithstanding any other provision of law, $17,000,000 is 
     hereby appropriated to ``Operation and Maintenance, Army'', 
     to remain available until September 30, 2004, to be available 
     only for a grant in the amount of $17,000,000 to the Silver 
     Valley Unified School District, Silver Valley, California, 
     for the purpose of school construction at Fort Irwin, 
     California.
       Sec. 8126. (a) The total amount appropriated or otherwise 
     made available in titles II, III, and IV of this Act is 
     hereby reduced by $1,662,000,000 to reflect savings from 
     outsourcing, management efficiencies, and revised economic 
     assumptions, to be distributed as follows:
       ``Title II'', $554,000,000;
       ``Title III'', $554,000,000; and
       ``Title IV'', $554,000,000.
       (b) The Secretary of Defense shall allocate this reduction 
     proportionately to each budget activity, activity group, 
     subactivity group, and each program, project, and activity 
     within each applicable appropriation account: Provided, That 
     appropriations made available in this Act for the pay and 
     benefits of military personnel are exempt from reductions 
     under this provision.


                     (including transfer of funds)

       Sec. 8127. (a) The amount appropriated in title II for 
     ``Operation and Maintenance, Air Force'' is hereby reduced by 
     $451,000,000 to reflect cash balance and rate stabilization 
     adjustments in the Department of Defense Transportation 
     Working Capital Fund.
       (b) Not later than 60 days after the date of the enactment 
     of this Act, the Secretary of Defense shall transfer 
     $451,000,000 from the Department of Defense Transportation 
     Working Capital Fund to ``Operation and Maintenance, Air 
     Force'' to offset the reduction made by subsection (a). The 
     transfer required by this subsection is in addition to any 
     other transfer authority provided to the Department of 
     Defense.


                              (rescission)

       Sec. 8128. Of the funds made available in chapter 3 of 
     title I of the Emergency Wartime Supplemental Appropriations 
     Act, 2003 (Public Law 108-11), under the heading ``Iraq 
     Freedom Fund'', $3,490,000,000 are hereby rescinded.
       Sec. 8129. Of the total amount appropriated by this Act 
     under the heading ``Operation and Maintenance, Defense-
     Wide'', the Secretary of Defense may use up to $855,566 to 
     make additional payment under section 363 of the Floyd D. 
     Spence National Defense Authorization Act for Fiscal Year 
     2001 (20 U.S.C. 7703a) to those local educational agencies 
     whose percentage reduction in the payment amount for fiscal 
     year 2002 was in excess of the reduction otherwise imposed 
     under subsection (d) of such section for that fiscal year. 
     The Secretary of Defense may waive collection of any 
     overpayment made to local educational agencies under such 
     section for fiscal year 2002.
       Sec. 8130. None of the funds appropriated or otherwise made 
     available by this Act may be used to implement any amendment 
     or revision of, or cancel, the Department of Defense 
     Directive 1344.7, ``Personal Commercial Solicitation on DoD 
     Installations'', until 90 days following the date the 
     Secretary of Defense submits to Congress notice of the 
     amendment, revision or cancellation, and the reasons 
     therefore.
       Sec. 8131. (a) Notwithstanding any other provision of law, 
     none of the funds appropriated or otherwise made available in 
     this or any other Act may be obligated for the Terrorism 
     Information Awareness Program: Provided, That this limitation 
     shall not apply to the program hereby authorized for 
     Processing, analysis, and collaboration tools for 
     counterterrorism foreign intelligence, as described in the 
     Classified Annex accompanying the Department of Defense 
     Appropriations Act, 2004, for which funds are expressly 
     provided in the National Foreign Intelligence Program for 
     counterterrorism foreign intelligence purposes.
       (b) None of the funds provided for Processing, analysis, 
     and collaboration tools for counterterrorism foreign 
     intelligence shall be available for deployment or 
     implementation except for:
       (1) lawful military operations of the United States 
     conducted outside the United States; or
       (2) lawful foreign intelligence activities conducted wholly 
     overseas, or wholly against non-United States citizens.
       (c) In this section, the term ``Terrorism Information 
     Awareness Program'' means the program known either as 
     Terrorism Information Awareness or Total Information 
     Awareness, or any successor program, funded by the Defense 
     Advanced Research Projects Agency, or any other Department or 
     element of the Federal Government, including the individual 
     components of such Program developed by the Defense Advanced 
     Research Projects Agency.
       Sec. 8132. (a) Closure of Naval Station Roosevelt Roads, 
     Puerto Rico.--Notwithstanding any other provision of law, the 
     Secretary of the Navy shall close Naval Station Roosevelt 
     Roads, Puerto Rico, no later than 6 months after enactment of 
     this Act.
       (b) Implementation.--The closure provided for in subsection 
     (a), and subsequent disposal, shall be carried out in 
     accordance with the procedures and authorities contained in 
     the Defense Base Closure and Realignment Act of 1990 (title 
     XXIX of Public Law 101-510; 10 U.S.C. 2687 note).
       (c) Office of Economic Adjustment Activities.--
     Notwithstanding any other provision of law, the Office of 
     Economic Adjustment of the Department of Defense may make 
     grants and supplement other Federal funds using funds made 
     available by this Act under the heading ``Operation and 
     Maintenance, Defense-Wide'', and the projects so supported 
     shall be considered to be authorized by law.
       Sec. 8133. Up to $2,000,000 of the funds appropriated by 
     this Act under the heading, ``Operation and Maintenance, 
     Army'', may be made available to contract for services 
     required to solicit non-Federal donations to support 
     construction and operation of the United States Army Museum 
     at Fort Belvoir, Virginia: Provided, That notwithstanding any 
     other provision of

[[Page H8514]]

     law, the Army is authorized to receive future payments in 
     this or the subsequent fiscal year from any non-profit 
     organization chartered to support the United States Army 
     Museum to reimburse amounts expended by the Army pursuant to 
     this section: Provided further, That any reimbursements 
     received pursuant to this section shall be merged with 
     ``Operation and Maintenance, Army'' and shall be made 
     available for the same purposes and for the same time period 
     as that appropriation account.
       Sec. 8134. Designation of America's National World War II 
     Museum. (a) Findings.--Congress makes the following findings:
       (1) The National D-Day Museum, operated in New Orleans, 
     Louisiana by an educational foundation, has been established 
     with the vision ``to celebrate the American Spirit''.
       (2) The National D-Day Museum is the only museum in the 
     United States that exists for the exclusive purpose of 
     interpreting the American experience during the World War II 
     years (1939-1945) on both the battlefront and the home front 
     and, in doing so, covers all of the branches of the Armed 
     Forces and the Merchant Marine.
       (3) The National D-Day Museum was founded by the preeminent 
     American historian, Stephen E. Ambrose, as a result of a 
     conversation with President Dwight D. Eisenhower in 1963, 
     when the President and former Supreme Commander, Allied 
     Expeditionary Forces in Europe, credited Andrew Jackson 
     Higgins, the chief executive officer of Higgins Industries in 
     New Orleans, as the ``man who won the war for us'' because 
     the 12,000 landing craft designed by Higgins Industries made 
     possible all of the amphibious invasions of World War II and 
     carried American soldiers into every theatre of the war.
       (4) The National D-Day Museum, since its grand opening on 
     June 6, 2000, the 56th anniversary of the D-Day invasion of 
     Normandy, has attracted nearly 1,000,000 visitors from around 
     the world, 85 percent of whom have been Americans from across 
     the country.
       (5) American World War II veterans, called the ``greatest 
     generation'' of the Nation, are dying at the rapid rate of 
     more than 1,200 veterans each day, creating an urgent need to 
     preserve the stories, artifacts, and heroic achievements of 
     that generation.
       (6) The United States has a need to preserve forever the 
     knowledge and history of the Nation's most decisive 
     achievement in the 20th century and to portray that history 
     to citizens, visitors, and school children for centuries to 
     come.
       (7) Congress, recognizing the need to preserve this 
     knowledge and history, appropriated funds in 1992 to 
     authorize the design and construction of The National D-Day 
     Museum in New Orleans to commemorate the epic 1944 Normandy 
     invasion, and subsequently appropriated additional funds in 
     1998, 2000, 2001, 2002, and 2003 to help expand the exhibits 
     in the museum to include the D-Day invasions in the Pacific 
     Theatre of Operations and the other campaigns of World War 
     II.
       (8) The State of Louisiana and thousands of donors and 
     foundations across the country have contributed millions of 
     dollars to help build this national institution.
       (9) The Board of Trustees of The National D-Day Museum is 
     national in scope and diverse in its makeup.
       (10) The World War II Memorial now under construction on 
     the National Mall in Washington, the District of Columbia, 
     will always be the memorial in our Nation where people come 
     to remember America's sacrifices in World War II, while The 
     National D-Day Museum will always be the museum of the 
     American experience in the World War II years (1939-1945), 
     where people come to learn about Americans' experiences 
     during that critical period, as well as a place where the 
     history of our Nation's monumental struggle against worldwide 
     aggression by would-be oppressors is preserved so that future 
     generations can understand the role the United States played 
     in the preservation and advancement of democracy and freedom 
     in the middle of the 20th century.
       (11) The National D-Day Museum seeks to educate a diverse 
     group of audiences through its collection of artifacts, 
     photographs, letters, documents, and first-hand personal 
     accounts of the participants in the war and on the home front 
     during one of history's darkest hours.
       (12) The National D-Day Museum is devoted to the combat 
     experience of United States citizen soldiers in all of the 
     theatres of World War II and to the heroic efforts of the men 
     and women on the home front who worked tirelessly to support 
     the troops and the war effort.
       (13) The National D-Day Museum continues to add to and 
     maintain one of the largest personal history collections in 
     the United States of the men and women who fought in World 
     War II and who served on the home front.
       (14) No other museum describes as well the volunteer spirit 
     that arose throughout the United States and united the 
     country during the World War II years.
       (15) The National D-Day Museum is engaged in a 250,000 
     square foot expansion to include the Center for the Study of 
     the American Spirit, an advanced format theatre, and a new 
     United States pavilion.
       (16) The planned ``We're All in this Together'' exhibit 
     will describe the role every State, commonwealth, and 
     territory played in World War II, and the computer database 
     and software of The National D-Day Museum's educational 
     program will be made available to the teachers and school 
     children of every State, commonwealth, and territory.
       (17) The National D-Day Museum is an official Smithsonian 
     affiliate institution with a formal agreement to borrow 
     Smithsonian artifacts for future exhibitions.
       (18) Le Memorial de Caen in Normandy, France has formally 
     recognized The National D-Day Museum as its official partner 
     in a Patriotic Alliance signed on October 16, 2002, by both 
     museums.
       (19) The official Battle of the Bulge museums in Luxembourg 
     and the American Battlefield Monuments Commission are already 
     collaborating with The National D-Day Museum on World War II 
     exhibitions.
       (20) For all of these reasons, it is appropriate to 
     designate The National D-Day Museum as ``America's National 
     World War II Museum''.
       (b) Purposes.--The purposes of this section are, through 
     the designation of The National D-Day Museum as ``America's 
     National World War II Museum'', to express the United States 
     Government's support for--
       (1) the continuing preservation, maintenance, and 
     interpretation of the artifacts, documents, images, and 
     history collected by the museum;
       (2) the education of the American people as to the American 
     experience in combat and on the home front during the World 
     War II years, including the conduct of educational outreach 
     programs for teachers and students throughout the United 
     States;
       (3) the operation of a premier facility for the public 
     display of artifacts, photographs, letters, documents, and 
     personal histories from the World War II years (1939-1945);
       (4) the further expansion of the current European and 
     Pacific campaign exhibits in the museum, including the Center 
     for the Study of the American Spirit for education; and
       (5) ensuring the understanding by all future generations of 
     the magnitude of the American contribution to the Allied 
     victory in World War II, the sacrifices made to preserve 
     freedom and democracy, and the benefits of peace for all 
     future generations in the 21st century and beyond.
       (c) Designation of ``America's National World War II 
     Museum''.--The National D-Day Museum, New Orleans, Louisiana, 
     is designated as ``America's National World War II Museum''.
       Sec. 8135. Native American Veteran Housing Loans. (a) Title 
     I of Division K of the Consolidated Appropriations 
     Resolution, 2003 (Public Law 108-7) is amended by striking 
     out ``expenses: Provided, That no new loans in excess of 
     $5,000,000 may be made in fiscal year 2003.'' from the 
     paragraph under the heading ``Native American Veteran Housing 
     Loan Program Account'' and inserting in lieu thereof 
     ``expenses.''.
       (b) The amendment made by subsection (a) of this section is 
     effective on the date of the enactment of Public Law 108-7, 
     February 20, 2003.
       Sec. 8136. None of the funds appropriated in this Act shall 
     be used to study, demonstrate, or implement any plans 
     privatizing, divesting or transferring of any Civil Works 
     missions, functions, or responsibilities for the United 
     States Army Corps of Engineers to other government agencies 
     without specific direction in a subsequent Act of Congress.
       Sec. 8137. None of the funds provided in this Act may be 
     used to pay any fee charged by the Department of State for 
     the purpose of constructing new United States diplomatic 
     facilities.
       Sec. 8138. (a) The Secretary of Defense--
       (1) shall review--
       (A) contractual offset arrangements to which the policy 
     established under section 2532 of title 10, United States 
     Code, applies that are in effect on the date of the enactment 
     of this Act;
       (B) memoranda of understanding and related agreements to 
     which the limitation in section 2531(c) of such title applies 
     that have been entered into with a country with respect to 
     which such contractual offset arrangements have been entered 
     into and are in effect on such date; and
       (C) waivers granted with respect to a foreign country under 
     section 2534(d)(3) of title 10, United States Code, that are 
     in effect on such date; and
       (2) shall determine the effects of the use of such 
     arrangements, memoranda of understanding, agreements, and 
     waivers on the national technology and industrial base.
       (b) The Secretary shall submit a report on the results of 
     the review under subsection (a) to Congress not later than 
     March 1, 2005. The report shall include a discussion of each 
     of the following:
       (1) The effects of the contractual offset arrangements on 
     specific subsectors of the industrial base of the United 
     States and what actions have been taken to prevent or 
     ameliorate any serious adverse effects on such subsectors.
       (2) The extent, if any, to which the contractual offset 
     arrangements and memoranda of understanding and related 
     agreements have provided for technology transfer that would 
     significantly and adversely affect the national technology 
     and industrial base.
       (3) The extent to which the use of such contractual offset 
     arrangements is consistent with--
       (A) the limitation in section 2531(c) of title 10, United 
     States Code, that prohibits implementation of a memorandum of 
     understanding and related agreements if the President, taking 
     into consideration the results of the interagency review, 
     determines that such memorandum of understanding or a related 
     agreement has or is likely to have a significant adverse 
     effect on United States industry that outweighs the benefits 
     of entering into or implementing such memorandum or 
     agreement; and
       (B) the requirements under section 2534(d) of such title 
     that--
       (i) a waiver granted under such section not impede 
     cooperative programs entered into between the Department of 
     Defense and a foreign country and not impede the reciprocal 
     procurement of defense items that is entered into in 
     accordance with section 2531 of such title; and
       (ii) the country with respect to which the waiver is 
     granted not discriminate against defense items produced in 
     the United States to a greater degree than the United States 
     discriminates against defense items produced in that country.

[[Page H8515]]

       (c) The Secretary shall submit to the President any 
     recommendations regarding the use or administration of 
     contractual offset arrangements and memoranda of 
     understanding and related agreements referred to in 
     subsection (a) that the Secretary considers an appropriate 
     response to the findings resulting from the Secretary's 
     review.
       Sec. 8139. It is the sense of the Senate that--
       (1) any request for funds for a fiscal year for an ongoing 
     overseas military operation, including operations in 
     Afghanistan and Iraq, should be included in the annual budget 
     of the President for such fiscal year as submitted to 
     Congress under section 1105(a) of title 31, United States 
     Code; and
       (2) any funds provided for such fiscal year for such a 
     military operation should be provided in appropriations Acts 
     for such fiscal year through appropriations to specific 
     accounts set forth in such Acts.
       Sec.  8140. Study Regarding Mail Delivery in the Middle 
     East. (a) Study.--The Comptroller General of the United 
     States shall conduct a review of the delivery of mail to 
     troops in the Middle East and the study should:
       (1) Determine delivery times, reliability, and losses for 
     mail and parcels to and from troops stationed in the Middle 
     East.
       (2) Identify and analyze mail and parcel delivery service 
     efficiency issues during Operations Desert Shield/Desert 
     Storm, compared to such services which occurred during 
     Operation Iraqi Freedom.
       (3) Identify cost efficiencies and benefits of alternative 
     delivery systems or modifications to existing delivery 
     systems to improve the delivery times of mail and parcels.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit a report to the congressional defense 
     committees on their findings and recommendations.
       Sec. 8141. (a) Limitation on Use of Funds.--Notwithstanding 
     any other provision of law, no funds appropriated or 
     otherwise made available by this Act may be obligated or 
     expended to decommission a Naval or Marine Corps Reserve 
     aviation squadron until the report required by subsection (b) 
     is submitted to the committees of Congress referred to in 
     that subsection.
       (b) Report on Navy and Marine Corps Tactical Aviation 
     Requirements.--
       (1) Not later than February 1, 2004, the Comptroller 
     General of the United States shall submit to the 
     congressional defense committees a report on the requirements 
     of the Navy and the Marine Corps for tactical aviation, 
     including mission requirements, recapitalization 
     requirements, and the role of Naval and Marine Corps Reserve 
     assets in meeting such requirements.
       (2) The report shall include the recommendations of the 
     Comptroller General on an appropriate force structure for the 
     active and reserve aviation units of the Navy and the Marine 
     Corps, and related personnel requirements, for the 10-year 
     period beginning on the date of the report.
       Sec. 8142. The Secretary of the Air Force, in consultation 
     with the Chief of Air Force Reserve, shall study the mission 
     of the 932nd Airlift Wing, Scott Air Force Base, Illinois, 
     and evaluate whether it would be appropriate to substitute 
     for that mission a mixed mission of transporting patients, 
     passengers, and cargo that would increase the airlift 
     capability of the Air Force while continuing the use and 
     training of aeromedical evacuation personnel. The Secretary 
     shall submit a report on the results of the study and 
     evaluation to the congressional defense committees not later 
     than January 16, 2004.
       Sec. 8143. Reports on Safety Issues Due to Defective Parts. 
     (a) Report from the Secretary.--The Secretary shall by March 
     31, 2004, examine and report back to the congressional 
     defense committees on--
       (1) how to implement a system for tracking safety-critical 
     parts so that parts discovered to be defective, including due 
     to faulty or fraudulent work by a contractor or 
     subcontractor, can be identified and found;
       (2) appropriate standards and procedures to ensure timely 
     notification of contracting agencies and contractors about 
     safety issues including parts that may be defective, and 
     whether the Government Industry Data Exchange Program should 
     be made mandatory;
       (3) efforts to find and test airplane parts that have been 
     heat treated by companies alleged to have done so improperly; 
     and
       (4) whether contracting agencies and contractors have been 
     notified about alleged improper heat treatment of airplane 
     parts.
       (b) Report from the Comptroller General.--The Comptroller 
     General shall examine and report back to the congressional 
     defense committees on--
       (1) the oversight of subcontractors by prime contractors, 
     and testing and quality assurance of the work of the 
     subcontractors; and
       (2) the oversight of prime contractors by the Department, 
     the accountability of prime contractors for overseeing 
     subcontractors, and the use of enforcement mechanisms by the 
     Department.
       Sec. 8144. Section 8149(b) of the Department of Defense 
     Appropriations Act, 2003 (Public Law 107-248; 116 Stat. 1572) 
     is amended by adding at the end the following new paragraph:
       ``(3) This subsection shall remain in effect for fiscal 
     year 2004.''.
       Sec. 8145. (a) The Secretary of the Navy shall transfer by 
     gift under section 7306 of title 10, United States Code, the 
     Sturgeon Class submarine NARWHAL (SSN-671) to the National 
     Submarine Science Discovery Center, Newport, Kentucky, upon 
     receipt of an application for donation of such vessel to the 
     Center that is satisfactory to the Secretary.
       (b) Before transferring the submarine as required under 
     subsection (a), the Secretary shall remove the nuclear 
     reactor compartment and the other classified or otherwise 
     sensitive military equipment of the submarine.
       (c) Subsection (c) of section 7306 of title 10, United 
     States Code, does not apply to the cost of carrying out 
     subsection (b) of this section, any other cost of dismantling 
     the submarine, and the cost of any recycling or disposal of 
     equipment and materiel removed from the submarine before 
     transfer.
       (d) Subsection (d) of section 7306 of title 10, United 
     States Code, does not apply to the transfer required under 
     subsection (a).
       Sec. 8146. Fiscal Year 2004 Exemption for Certain Members 
     of the Armed Forces From Requirement to Pay Subsistence 
     Charges While Hospitalized. (a) In General.--Section 1075 of 
     title 10, United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``When''; and
       (2) by striking the second sentence and inserting the 
     following:
       ``(b) Exceptions.--Subsection (a) shall not apply to any of 
     the following:
       ``(1) An enlisted member, or former enlisted member, of a 
     uniformed service who is entitled to retired or retainer pay 
     or equivalent pay.
       ``(2) An officer or former officer of a uniformed service, 
     or an enlisted member or former enlisted member of a 
     uniformed service not described in paragraph (1), who is 
     hospitalized under section 1074 because of an injury incurred 
     (as determined under criteria prescribed by the Secretary of 
     Defense)--
       ``(A) as a direct result of armed conflict;
       ``(B) while engaged in hazardous service;
       ``(C) in the performance of duty under conditions 
     simulating war; or
       ``(D) through an instrumentality of war.
       ``(c) Applicability.--The exception provided in paragraph 
     (2) of subsection (b) shall apply only during fiscal year 
     2004.''.
       (b) Effective Date.--Subsections (b) and (c) of section 
     1075 of title 10, United States Code, as added by subsection 
     (a), shall take effect on October 1, 2003, and apply with 
     respect to injuries incurred before, on, or after that date.
       This Act may be cited as the ``Department of Defense 
     Appropriations Act, 2004''.
       And the Senate agree to the same.

     Jerry Lewis,
     C. W. Bill Young,
     David L. Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Randy ``Duke'' Cunningham,
     Rodney P. Frelinghuysen,
     Todd Tiahrt,
     Roger F. Wicker,
     John P. Murtha,
     Norman D. Dicks,
     Martin Olav Sabo,
     Peter J. Visclosky,
     James P. Moran,
     David R. Obey,
                                Managers on the Part of the House.

     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete V. Domenici,
     Christopher S. Bond,
     Mitch McConnell,
     Richard C. Shelby,
     Judd Gregg,
     Kay Bailey Hutchison,
     Conrad Burns,
     Daniel K. Inouye,
     Ernest F. Hollings,
     Robert C. Byrd,
     Patrick J. Leahy,
     Tom Harkin,
     Byron L. Dorgan,
     Richard J. Durbin,
     Harry Reid,
     Dianne Feinstein,
                               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. 2658), making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 2004, 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, 2004, incorporates some of the provisions 
     of both the House and Senate versions of the bill. The 
     language and allocations set forth in House Report 108-187 
     and Senate Report 108-87 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

[[Page H8516]]

     items identified in the Department of Defense Appropriations 
     Act, 2004, 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 2005, 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 military personnel and operation and maintenance in any 
     budget request, or amended budget request, for fiscal year 
     2005.

                         Special Interest Items

       Items for which additional funds have been provided as 
     shown in the project level adjustment tables or items 
     identified in paragraphs using the phrase ``only for'' or 
     ``only to'' in this Statement, are congressional interest 
     items for the purpose of the Base for Reprogramming (DD 
     1414). Each of these items must be carried on the DD Form 
     1414 at the stated amount, or a revised amount if changed 
     during the conference or if otherwise specifically addressed 
     in the conference report. These items remain special interest 
     items whether or not they are repeated in a subsequent 
     conference report or Statement.

                         Reprogramming Guidance

       The conferees note that the conference report accompanying 
     Public Law 108-7 provided a temporary increase in the 
     thresholds for the prior approval reprogramming of funds for 
     the procurement and research, development, test and 
     evaluation accounts of the Department of Defense. The 
     conferees wish to emphasize that this revision was intended 
     to effect only the execution of funds available for fiscal 
     year 2003.
       The conferees are aware that the Department of Defense 
     believes a greater degree of latitude is needed to best 
     utilize the resources appropriated by the Congress. The 
     conferees have long held that better management and budget 
     preparation is the solution to DoD's needs, not greater 
     fiscal flexibility which would result in less accountability 
     to America's taxpayers. It is true that the effect of 
     inflation has diluted the value of numerical below threshold 
     limits. The conferees, therefore, agree to continue the 
     temporary reprogramming threshold increases, approved for 
     fiscal year 2003, for procurement and research, development, 
     test and evaluation funds provided in this Act for fiscal 
     year 2004. The conferees believe the Defense Department needs 
     to provide more convincing arguments if it expects the 
     Committees to approve this change permanently. The conferees 
     also want to be clear that the approved below threshold 
     reprogramming limitations are the specific dollar threshold 
     allowed for fiscal year 2003, or 20 percent of any specific 
     line item, which ever is less.
       The conferees direct that the Secretary of Defense provide 
     guidance to this effect to the military Services and Defense-
     Wide activities within 15 days of enactment of this Act and 
     provide the congressional defense committees with a copy of 
     this guidance.

              Timeliness of Budget Justification Materials

       The conferees concur with Senate Report 108-87 regarding 
     the timeliness of budget justification materials received 
     from the Department of Defense, and expect the problem to be 
     resolved with the fiscal year 2005 budget estimate.

                            Classified Annex

       Adjustments to classified programs are addressed in the 
     classified annex accompanying this report.

[[Page H8517]]

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[[Page H8518]]

                        Accuracy of Obligations

       The conferees recommend a reduction of $115,000,000 to the 
     budget request, based on a General Accounting Office (GAO) 
     review of prior year unobligated and unexpended military 
     personnel account balances. The Services certify the accuracy 
     of present and prior year obligation balances annually; 
     however, not all of the funds obligated are expended, and 
     those unexpended balances are not always identified in the 
     annual review certification process. Because the Services 
     account data continue to show a pattern of underspending 
     their appropriated funds, the conferees believe that the 
     fiscal year 2004 military personnel budget request is 
     overstated and can be reduced.
       The conferees believe the Services can improve their 
     appropriation balance review below the budget activity to 
     ensure that funds are properly obligated and expended. The 
     conferees direct the Secretary of Defense to ensure that the 
     Services strengthen the annual review process by including a 
     review of the accuracy of prior year appropriations below the 
     budget activity level. To facilitate this review, the 
     financial management improvement initiative should include 
     financial decision-making processes that provide transparency 
     of disbursements at the same level as the budget submission.

          Family Separation Allowance and Imminent Danger Pay

       The conferees recommend $128,000,000 above the budget 
     request for Family Separation Allowance and Imminent Danger 
     Pay instead of $210,205,000 as proposed by the Senate. These 
     funds are provided for increases in Family Separation 
     Allowance and Imminent Danger Pay as authorized in Public Law 
     108-11.

                        Force Structure Changes

       The conferees recommend a total of $147,100,000 in the 
     military personnel, operation and maintenance, and 
     procurement accounts for force structure that was not 
     included in the budget request, as follows:

                        [In thousands of dollars]
------------------------------------------------------------------------
                               Milpers      O&M       Proc.      Total
------------------------------------------------------------------------
Air Force B-52 aircraft.....     $3,800     25,100    $11,700     40,600
National Guard Full-Time
 Support:
    ARNG Civil Support Teams     18,000     39,300     26,900     88,200
     AGRs...................
    ANG Civil Support Teams       4,000  .........  .........      4,000
     AGRs...................
    Ground-Based Midcourse       14,300  .........  .........     14,300
     Missile Defense Program
     AGRs...................
------------------------------------------------------------------------


                           ACTIVE END STRENGTH
                           [Fiscal year 2004]
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. budget
------------------------------------------------------------------------
Army.............................      480,000      480,000  ...........
Navy.............................      373,800      373,800  ...........
Marine Corps.....................      175,000      175,000  ...........
Air Force........................      359,300      359,300  ...........
                                  --------------------------------------
    Total, Active Personnel......    1,388,100    1,388,100  ...........
------------------------------------------------------------------------


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[[Page H8520]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.003


[[Page H8521]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.004


[[Page H8522]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.005


[[Page H8523]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [in thousands of dollars]

Budget Activity 2: Pay and Allowances of Enlisted Personnel:
  1050  Special Pays/Selective Reenlistment Bonuses.............-16,500
Other Adjustments:
  3020  ONW/OSW/ODS CONOPS......................................-74,169
  3200  Unobligated Balances....................................-32,500
  3255  Increase in Death Gratuity................................3,400
  3260  Increase in FSA/IDP......................................79,000

[[Page H8524]]

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[[Page H8525]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.007



[[Page H8526]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.008



[[Page H8527]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [in thousands of dollars]

Budget Activity 2: Pay and Allowances of Enlisted Personnel:
  7350  Special Pays/Selective Reenlistment Bonuses.............-20,300
  7450  Separation Pay..........................................-26,000
Other Adjustments:
  9420  ONW/OSW/ODS CONOPS.......................................-1,203
  9550  Unobligated Balances....................................-11,000
  9610  Increase in Death Gratuity................................1,500
  9620  Increase in FSA/IDP......................................20,000

[[Page H8528]]

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[[Page H8529]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.010



[[Page H8530]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.011



[[Page H8531]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [in thousands of dollars]

Budget Activity 2: Pay and Allowances of Enlisted Personnel:
  12400  Special Pays/Selective Reenlistment Bonuses.............-1,800
Other Adjustments:
  14320  ONW/OSW/ODS CONOPS........................................-300
  14560  Unobligated Balances....................................-8,000
  14570  Increase in Death Gratuity...............................1,000
  14575  Increase in FSA/IDP......................................9,000

[[Page H8532]]

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[[Page H8533]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.013



[[Page H8534]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.014



[[Page H8535]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.015



[[Page H8536]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Other Adjustments:
  19255  ONW/OSW/ODS CONOPS....................................-235,436
  19620  Unobligated Balances...................................-40,000
  19625  B-52 attrition reserve...................................3,800
  19630  Increase in Death Gratuity...............................1,500
  19635  Increase in FSA/IDP.....................................20,000

                   National Guard and Reserve Forces

       The conferees agree to provide $15,105,951,000 in Reserve 
     personnel appropriations, $14,296,667,000 in Reserve 
     operation and maintenance appropriations, and $400,000,000 in 
     the National Guard and Reserve Equipment appropriation. These 
     funds support a Selected Reserve end strength of 863,300 as 
     shown below.

                      SELECTED RESERVE END STRENGTH
                           [Fiscal year 2004]
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
Selected Reserve:
  Army Reserve...................      205,000      205,000  ...........
  Navy Reserve...................       85,900       85,900  ...........
  Marine Corps Reserve...........       39,600       39,600  ...........
  Air Force Reserve..............       75,800       75,800  ...........
  Army National Guard............      350,000      350,000  ...........
  Air National Guard.............      107,000      107,000  ...........
                                  --------------------------------------
        Total....................      863,300      863,300  ...........
AGR/TARS:
  Army Reserve...................       14,374       14,374  ...........
  Navy Reserve...................       14,384       14,384  ...........
  Marine Corps Reserve...........        2,261        2,261  ...........
  Air Force Reserve..............        1,660        1,660  ...........
  Army National Guard............       25,386       25,597         +211
  Air National Guard.............       12,140       12,193          +53
                                  --------------------------------------
        Total....................       70,205       70,469         +264
Technicans:
  Army Reserve...................        7,594        7,594  ...........
  Air Force Reserve..............       10,081       10,081  ...........
  Army National Guard............       26,189       26,189  ...........
  Air National Guard.............       23,156       23,156  ...........
                                  --------------------------------------
        Total....................       67,020       67,020  ...........
------------------------------------------------------------------------


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[[Page H8538]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Other Adjustments:
  23900 Unobligated Balances.....................................-5,000
  23950 Reserves Cost Avoidance.................................-10,000
  23955 Increase in Death Gratuity..................................100

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[[Page H8540]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Other Adjustments:
  25060 ONW/OSW/ODS CONOPS.........................................-826
  25300 Unobligated Balances.....................................-5,000
  25370 Reserves Cost Avoidance.................................-20,000
  25380 Increase in Death Gratuity..................................400

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[GRAPHIC] [TIFF OMITTED] TH24SE03.018



[[Page H8542]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Other Adjustments:
  26600 Unobligated Balances.....................................-2,000
  26650 Reserves Cost Avoidance.................................-14,000

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[[Page H8544]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Other Adjustments:
  27900  Unobligated Balances....................................-4,000
  27910  Reserves Cost Avoidance................................-40,000
  27920  Increase in Death Gratuity.................................200

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[GRAPHIC] [TIFF OMITTED] TH24SE03.020



[[Page H8546]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 2: Other Training and Support
  28800  Administration and Support/Full Time Manning for AGRs...37,800
  28800  Administration and Support/Civil Support Teams AGRs.....18,000
  28800  Administration and Support/Ground-Based Midcourse Missile 
    Defense AGRs.................................................14,300
Other Adjustments:
  29350  Unobligated Balances....................................-5,000
  29410  Reserves Cost Avoidance................................-50,000
  29430  Mobilized AGRs.........................................-30,000
  29435  Lewis and Clark Bicentennial Activities....................750
  29440  Increase in Death Gratuity.................................200

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[GRAPHIC] [TIFF OMITTED] TH24SE03.021



[[Page H8548]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 2: Other Training and Support
  30150  Administration and Support/Civil Support Teams AGRs......4,000
Other Adjustments:
  30550  Unobligated Balances....................................-2,500
  30600  Reserves Cost Avoidance................................-50,000

[[Page H8549]]

[GRAPHIC] [TIFF OMITTED] TH24SE03.022



[[Page H8550]]

                     Travel of Military Dependents

       The conferees are concerned that spouses and dependents of 
     deployed military personnel often do not have the financial 
     means to visit their family members. Such travel could help 
     ease the difficult burden of managing a household. The 
     conferees direct the Secretary of Defense to submit a 
     proposal for a program that would provide travel assistance 
     to spouses and dependents of deployed military personnel. 
     This proposal is to be submitted to the congressional defense 
     committees before presentation of the fiscal year 2005 budget 
     estimate.

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[[Page H8552]]

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[[Page H8553]]

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[[Page H8554]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  250  Modular Lightweight Load-Carrying Equipment (MOLLE)........1,800
  250  Hydration on the Move System Basic/Chemical/Biological.....1,000
  250  Expandable Light Air Mobility Shelters.....................5,100
  250  Clear Water Rinse Facility.................................2,000
  250  Extended Cold Weather Clothing System (ECWCS)..............3,000
  250  Fort Riley Readiness.......................................1,800
  450  SBCT Implementation.......................................30,000
  550  C4I O&M requirements transferred from OPA.................22,262
  550  Enhance Urbanized Training at Fort Irwin and Support JNTC 
    Initiatives...................................................3,000
  750  Training and Support Facilities............................6,800
  750  Army Worker Safety Program Expansion.......................5,100
  750  Feasibility Study for Homeland Defense and National Security 
    Applications at Watervliet Arsenal..............................450
  750  Fort Knox University of Mounted Warfare Campus Area Network 
    infrastructure................................................1,200
  750  Repave Road to Ammo Facility at Fort Benning...............3,000
  750  Realign BOS/FSRM resources to BA-1........................80,110
  750  Realign BOS/FSRM resources to BA-1.......................819,604
  750  Realign BOS/FSRM resources to BA-1.......................238,993
  750  Realign BOS/FSRM resources to BA-1.....................1,194,134
  800  Army Chapel Renovation Matching Funds Program..............1,200
  800  Realign BOS/FSRM resources to BA-1.........................6,933
  800  Realign BOS/FSRM resources to BA-1........................61,096
  800  Realign BOS/FSRM resources to BA-1.......................392,550
  800  Realign BOS/FSRM resources to BA-1.......................260,288
  850  Deployable C4ISR...........................................1,000
  850  Network and IT Infrastructure Capabilities.................7,900
  850  PACMERS....................................................5,800
  950  Joint POW/MIA Accounting Command (JPAC) (transferred to O-26,600
  950  Northern Edge Realignment of funds (transferred to OMN)...-2,000
Budget Activity 2: Mobilization:
  1200  Quadrangle Containers.....................................2,800
  1325  Realign BOS/FSRM resources to BA-1.......................-6,933
Budget Activity 3: Training and Recruiting:
  1650  Air Battle Captain Program................................1,500
  1700  Realign BOS/FSRM resources to BA-1......................-80,110
  1700  Realign BOS/FSRM resources to BA-1......................-61,096
  1850  Gauntlet Training and Instrumentation Facility Upgrade, Fort 
    Knox..........................................................1,000
  1850  U.S. Army Engineer School.................................2,800
  1850  Military Police MCTFT Joint Training......................1,000
  1850  Satellite Communications for Learning (SCOLA) Language Tra2,000
  1900  Army Aviation Transformation Training Initiatives (Flight 
    School XXI)...................................................2,500
  1950  Civil Rights Education and History........................2,000
  2000  Defense Language Institute (DLI) LangNet Project..........1,000
  2000  Military Distance Learning Demonstration..................1,000
  2000  Fort Knox University of Mounted Warfare Classroom Automation 
    Resources.....................................................1,000
  2000  Online Technology Training Pilot Program in USARAK........2,500
  2050  Realign BOS/FSRM resources to BA-1.....................-819,604
  2050  Realign BOS/FSRM resources to BA-1.....................-392,550
  2300  Shakespeare in American Military Communities..............1,000
  2350  Online Technology Training Pilot Program at Fort Lewis....1,400
  2450  Realign BOS/FSRM resources to BA-1.....................-238,993
Budget Activity 4: Administration and Service wide Activities:
  2650  Classified...............................................15,375
  2800  Army Military Vehicle Batteries...........................1,400
  2800  Pulse Technology--Army Battery Management Program.........3,500
  2800  TACOM electronic Maintenance System.......................1,000
  2850  Integrated Digital Environments (IDE) Information Portal..1,000
  2850  Corrosion Prevention and Control Program..................4,800
  2850  Field Pack-Up (FPU) System................................1,800
  2850  Skidsteer Loaders.........................................6,000
  2850  Regional Agile Port Intermodal Distribution (RAPID).......1,000
  3050  C4I O&M Requirements (transferred from OPA).................671
  3050  Army Knowledge Online.....................................3,500
  3050  Army Knowledge Online Labs in Korea.........................500
  3150  Servicemembers Benefit Analysis Online (SMBAOnline).......3,500
  3200  Army Conservation and Ecosystem Management................3,000
  3200  Centralized Range Residue Recycling Facility (CRRRF)......1,500
  3200  Fort Wainwright CHPP Renovation..........................18,700
  3200  Fort Wainwright Utilidor Repair...........................9,000
  3200  Rock Island Arsenal Bridge Repairs........................2,450
  3200  Tanana Flats Training Area Cleanup Program..................500
  3350  Realign BOS/FSRM resources to BA-1...................-1,194,134
  3400  Realign BOS/FSRM resources to BA-1.....................-260,288
Undistributed:
  3710  Classified Programs.....................................177,000
  3720  Memorial Events.............................................400
  3970  Un-obligated Balance  ..................................-51,500
  4090  Southwest Asia CONOPS Costs............................-200,304
  4100  Administration and Service wide Activities..............-33,000
  4110  Civilian Pay Overstatement..............................-21,900
  4120  WMD Civil Support Teams..................................23,300

      Realignment of Base Operations Support (BOS) and Facilities 
      Sustainment, Restoration and Modernization (FSRM) Resources

       The conferees concur with Senate Report 108-87 regarding 
     the realignment of BOS and FSRM resources, which will allow 
     for more careful management of installation resources and 
     better oversight. However, rather than create a new budget 
     activity, the conferees have consolidated Army BOS and FSRM 
     resources in budget activity one, as detailed in the table 
     above.

          Servicemembers Benefit Analysis Online (SMBA Online)

       The conferees have provided an additional $3,500,000 in 
     Operation and Maintenance, Army for a pilot program to 
     implement and evaluate this unique benefit analysis system. 
     The conferees direct the Assistant Secretary of Defense 
     (Force Management Policy) to report on the implementation and 
     benefits of this pilot program, and submit this report to the 
     congressional defense committees before presentation of the 
     fiscal year 2005 budget.

           Stryker Brigade Combat Team (SBCT) Implementation

       The conferees have included an additional $30,000,000 only 
     to provide equipment and fielding of SBCTs, with appropriate 
     consideration given to entities that are located in the same 
     geographical region as the fielded SBCT, to include 
     analytical and logistics support.

                       Recruiting and Advertising

       The conferees direct that no less than $6,000,000 of the 
     funds provided for Operation and Maintenance, Army be used to 
     maintain existing production efforts directed toward certain 
     audiences, including Hispanic recruits.

                  Army Worker Safety Program Expansion

       The conferees are pleased with the progress of the Army's 
     safety initiative underway at Fort Bragg and at the 
     Watervliet Arsenal, and encourage the Secretary of the Army 
     to expand the initiative to other Army installations. The 
     conference agreement provides an additional $5,100,000 in 
     Operation and Maintenance, Army to enhance and expand the 
     current safety initiative for U.S. Army civilian and military 
     personnel.

           Integrated Digital Environments Information Portal

       The conference agreement provides an additional $500,000 in 
     Operation and Maintenance, Army only for the program 
     Executive Officer (PEO) Ground Combat Systems at TACOM to 
     expand the use of the eBusiness Portal IDE's among all their 
     weapon program managers and the Army's Research and

[[Page H8555]]

     Development command structure. The conference agreement also 
     provides an additional $500,000 in Operation and Maintenance, 
     Army only for AMCOM's Prototype Integration Facility to 
     expand an IDE environment in order to streamline rapid 
     prototyping and the airworthiness qualification and release 
     process. The Secretary of the Army shall provide a report to 
     the congressional defense committees no later than March 31, 
     2004, evaluating the effectiveness of IDEs as weapon program 
     management tools and the advantages they may provide to 
     weapon program stakeholders throughout the life cycle.

     Enhance Urbanized Training at Fort Irwin and Support for JNTC 
                              Initiatives

       The conference agreement provides an additional $3,000,000 
     in Operation and Maintenance, Army only to improve training 
     at the National Training Center, as follows: $750,000 for NTC 
     MOUT training; $750,000 for NTC training; and $1,500,000 for 
     NTC anti-terrorism training.

                            Tacony Warehouse

       The conferees agree that of the funds made available in 
     Operation and Maintenance, Army, $10,000,000 be used only to 
     demolish the Army's Tacony Warehouse. The conferees further 
     instruct the Secretary of the Army to ensure that the reuse 
     of the Tacony Warehouse site its consistent with proposals 
     outlined in the City of Philadelphia's North Delaware 
     Riverfront Redevelopment Plan.

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[[Page H8560]]

                    ADJUSTMENTS TO BUDGET ACTIVITIES

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  4400  CAST 70 Tester............................................1,000
  4650  Navy Depot Production Processes Cycle Time Improvement....1,000
  4650  Simulation Modeling Analytical Support System (SMASS).....1,200
  4650  Computer Automatic Tester and Radar Communication Automatic 
    Test Equipment (CAT&RAD COM)..................................5,100
  4650  Vertical Lift.............................................1,000
  4850  Photonic Sensor Marine Gas Turbine Engine Condition Based 
    Maintenance...................................................3,500
  5000  Cruiser Modernization (transferred from SCN)..............8,200
  5050  Apprentice, Engineering Technician and CO-OP Program IMF B1,100
  5050  Apprentice, Engineering Technician and CO-OP Program NUWC 
    Keyport.......................................................1,400
  5050  Naval Shipyard Apprenticeship Program.....................1,700
  5050  PHNSY Support............................................10,000
  5250  Collaborative Information Warfare Network SPAWAR Charlesto2,500
  5250  Manufacturing Technical Assistance and Production Program 
    (MTAPP).......................................................2,100
  5400  Warfare Tactics unjustified growth.......................-3,000
  5400  Northern Edge Realignment of funds (transferred from OMA, 2,800
  5500  Combat Support Forces unjustified growth................-21,700
  5500  Hydration on the Move System Basic/Chemical/Biological....1,000
  5500  Center of Excellence for Disaster Management and Humanitarian 
    Assistance....................................................4,300
  5550  Manual Reverse Osmosis Desalinator (MROD) Testing, Repair and 
    Replacement...................................................1,400
  5950  Mark-45 5'' Gun Depot Overhauls..........................12,000
  6210  Pier 3 Restoration at Puget Sound Naval Shipyard..........6,000
  6210  Realign BOS/FSRM resources to BA-1......................201,993
  6210  Realign BOS/FSRM resources to BA-1.......................98,108
  6210  Toledo Shipyard Improvement Plan..........................1,000
  6220  Critical Asset Vulnerability Assessment, Navy Region NW...1,400
  6220  Northwest Environmental Resource Center...................4,900
  6220  Realign BOS/FSRM resources to BA-1......................373,377
  6220  Realign BOS/FSRM resources to BA-1......................253,344
  6220  Integrated Safety Management System Expansion.............2,800
  6220  Combating Terrorism Database System (CTDS)................1,000
Budget Activity 2: Mobilization:
  6350  Ship Prepositioning and Surge unjustified growth........-10,000
  6350  Deployment/Mobilization Hub Study, New Orleans NAS/JRB......300
  6500  Ship Disposal Program.....................................7,000
Budget Activity 3: Training and Recruiting:
  7200  Specialized Skill Training unjustified growth...........-10,000
  7200  Blended Learning Initiative/Specialized Skill Training....2,800
  7200  Pier-Side Tactical and Simulation Training................1,000
  7350  Training Support unjustified growth.....................-15,000
  7350  Prototype System for Embedded Training and Performance 
    Support--CNET...................................................300
  7350  Naval Post Graduate Institute for Service to America......4,300
  7350  Center for Defense Technology and Education for the Military 
    Services......................................................4,000
  7550  Vital Learning Recruitment/Retention Screening Test Progra1,000
  7600  Continuing Education Distance Learning....................1,000
  7700  Naval Sea Cadet Corps.....................................1,500
  7820  Realign BOS/FSRM resources to BA-1.....................-201,993
  7830  Realign BOS/FSRM resources to BA-1.....................-373,377
Budget Activity 4: Administration and Servicewide Activities:
  8200  Joint POW/MIA Accounting Command (JPAC) (transferred from26,600
  8250  Mobile UHF DAMA Training Program..........................1,000
  8250  Configuration Management Information System (CMIS)........6,500
  8250  Navy Critical Infrastructure Protection...................2,200
  8250  SPAWAR Information Technology Center......................2,400
  8550  Planning, Engineering and Design unjustified growth.....-11,000
  8700  Advanced Technical Information Support (ATIS).............1,000
  8700  Flame Contaminant Detection System (FCDS).................1,500
  9000  Classified...............................................10,460
  9220  Realign BOS/FSRM resources to BA-1......................-98,108
  9230  Realign BOS/FSRM resources to BA-1.....................-253,344
Undistributed:
  9440  Un-obligated Balance....................................-99,000
  9540  Southwest Asia CONOPS Costs.............................-75,592
  9550  Administration and Servicewide Activities...............-52,000
  9560  PACOM Theater Joint C4 Capability.........................3,000

      Realignment of Base Operations Support (BOS) and Facilities 
      Sustainment, Restoration and Modernization (FSRM) Resources

       The conferees concur with Senate Report 108-87 regarding 
     the realignment of BOS and FSRM resources, which will allow 
     for more careful management of installation resources and 
     better oversight. However, rather than create a new budget 
     activity, the conferees have consolidated Navy BOS and FSRM 
     resources in budget activity one, as detailed in the table 
     above.

                   Naval Shipyard Apprentice Program

       The conferees have included an additional $1,700,000 in 
     Operation and Maintenance, Navy for the Naval Shipyard 
     Apprentice Program, bringing total funding for that program 
     to $30,580,000. The conferees direct the Navy to induct 
     classes of no fewer than 125 apprentices, at each of the 
     naval shipyards during fiscal year 2004. The conferees 
     further direct the Navy to include the costs of the fiscal 
     year 2005 class of apprentices in the FY 2005 budget 
     request.

         Blended Learning Initiative/Specialized Skill Training

       The conferees agree to provide an additional $2,800,000 
     only for the Blended Learning Initiative to build multi-
     purpose electronic classrooms capable of delivering 
     Integrated Learning Environment content for the United States 
     Navy. Classrooms will incorporate traditional platform 
     instruction, synchronous and asynchronous video, 
     teletraining/video, teleconferencing, and web-based training.

                   Northern Edge Realignment of Funds

       The conferees concur with Senate Report 108-87 regarding 
     the funds for Exercise Northern Edge, and recommend a 
     realignment of funds into Operation and Maintenance, Navy. 
     After this realignment, a total of $4,700,000 is available in 
     Operation and Maintenance, Navy to support Exercise Northern 
     Edge. For fiscal year 2005 and subsequent years, the 
     conferees direct the Secretary of Defense to provide funds in 
     a similar fashion.

              Configuration Management Information System

       The conferees provided an additional $6,500,000 in 
     Operation and Maintenance, Navy only for the Configuration 
     Management Information System (CMIS). The funding should be 
     used to further develop a knowledge management approach to 
     maintenance planning processes using Configuration Management 
     Information System data.

                      Alameda Point Naval Station

       The conferees are aware that the former Alameda Point Naval 
     Station is currently being considered as a candidate for 
     early transfer, based on the pending agreement between the 
     Navy and the City of Alameda for reuse, development, and 
     property preservation. The conferees are further aware that 
     the Administrator of the EPA must approve the deferral of the 
     CERCLA covenant. The conferees believe that early transfer of 
     the land and associated facilities to the City of Alameda 
     could serve as a model for military base conversion in an 
     urban environment. Accordingly, the conferees expect the 
     Secretary of the Navy and the Administrator of the 
     Environmental Protection Agency to work cooperatively to 
     achieve this early transfer in the most expeditious manner 
     possible.

                Repair of Military Sealift Command Ships

       The conferees are concerned that a disproportionate number 
     of Military Sealift

[[Page H8561]]

     Command (MSC) ships are being repaired in foreign shipyards. 
     The Secretary of the Navy is directed to provide a report to 
     the congressional defense committees which describes the 
     Navy's policy for repairing MSC ships in foreign shipyards, 
     analyzes trends in funding for and level of repair work done 
     on MSC ships in foreign and domestic yards, and reviews the 
     consequences of reallocating MSC ship repair work to domestic 
     shipyards. The report should be submitted no later than April 
     15, 2004.

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[[Page H8564]]

                    Adjustments of Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  10050  Modular General Purpose Tent System (MGPTS)..............1,800
  10050  Hydration on the Move System Basic/Chemical/Biological...1,000
  10050  Marine Corps U.S. Made Bayonets..........................3,000
  10050  All Purpose Environmental Clothing System (APECS)........3,000
  10050  Chem Bio Incident Response Force (CBIRF).................1,400
  10050  Mountain/Cold Weather Clothing and Equipment Program (MCW1,400
  10100  Corrosion Prevention and Control Program.................2,500
  10100  Lightweight Maintenance Enclosure........................1,000
  10100  USMC Albany, MATCOM Life Cycle Management................1,000
  10100  Depot Maintenance of Radar Systems.......................4,300
  10200  Training and Support Facilities..........................9,400
  10250  Adobe Road Twentynine Palms..............................3,800
Budget Activity 3: Training and Recruiting:
  11000  Training Support unjusified growth......................-3,000
  11300  Marine Corps Junior ROTC Operating Costs...................500
Budget Activity 4: Administration and Servicewide Activities:
  11800 USMC COOP.................................................6,800
Undistributed:
  12010  Un-obligated Balance....................................-5,700
  12020  Anti-Corrison Programs...................................2,000
  12040  Southwest Asia CONOPS Costs...............................-533

                 Marine Corps Logistics System Upgrades

       The conferees direct that of the funds made available in 
     Operation and Maintenance, Marine Corps, $3,000,000 be used 
     only for upgrades to Marine Corps Logistics Systems.

Marine Corps Tactical Systems Support Activity (MCTSSA) Combat Service 
                            Support Element

       The conferees direct that of the funds made available in 
     Operation and Maintenance, Marine Corps, $3,000,000 be used 
     only for the continuing efforts of the Marine Corps Tactical 
     System Support Activity (MCTSSA) to build out the combat 
     service support element of the System Integration 
     Environment.

                              HMMWV Tires

       The conferees direct that of the funds made available in 
     Operation and Maintenance, Marine Corps, $3,000,000 be used 
     only for the purchase of HMMWV tires.

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[[Page H8569]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  12600  Extended Cold Weather Clothing System (transferred to OM,ANG)0
  12600  Hydration on the Move System Basic/Chemical/Biological...1,000
  12600  F-16 Distributed Mission Training: Night Vision Goggle 
    Enhancement...................................................4,300
  12600  B-52 Attrition Reserve..................................25,100
  12750  Air Operations Training efficiencies in contract suppor-10,000
  12750  F-16 Simulator Motion Upgrade Program....................1,000
  12900  Aircraft Defect Detection and Performance Management 
    Application.....................................................250
  12800  11th Air Force Server Consolidation......................1,000
  12900  Super Typhoon Pongsona Recovery..........................2,000
  12900  Replace Fire Alarm System Base-wide, Columbus AFB (transferred 
    to OPAF)..........................................................0
  13000  Eagle Vision Program.....................................1,000
  13050  University Partnership for Operational Support (UPOS)....2,500
  13150  Northern Edge realignment of funds (transferred to OMN)...-800
  13200  Management Support for Air Force Battle Labs.............4,300
  13200  Langley AFB Visitor Center...............................1,400
  13550  Other Space Operations--limit growth in management 
    headquarters................................................-10,000
Budget Activity 3: Training and Recruiting:
  14500  Repair Airfield Pavement, Auxiliary Field, Columbus AFB..3,400
  14500  Sanitary Sewer System Repair, Phase 3 Columbus AFB.......1,000
  14700  Professional Development Education unjustified growth...-3,000
  14700  Western Governors University.............................1,000
  14750  Simulations Training for Integrating DoD WMD and Civilian 
    Response Systems..............................................2,800
  15100  Civilian Education and Training unjustified growth......-4,000
Budget Activity 4: Administration and Servicewide Activities:
  15350  Logistics-Systems Management and Retrieval Technology (L-
    SMART) Information System.....................................2,500
  15400  Air Force Operational Test and Evaluation Center (AFOTEC) IT 
    Infrastructure and Training...................................1,000
  15400  Wear Debris Data Repository..............................4,250
  15450  Hickman AFB Alternative Fuel Vehicle Program.............2,600
  15650  Eielson AFB Utilidor Repairs.............................9,000
  15650  Nikolski Power House Clean-up............................1,700
  15750  Elmendorf AFB Community Center Enhancements................500
  15800  Joint Combined Aircrew Tester............................1,000
  15800  MBU-20/P Oxygen Mask.....................................2,100
  16100  William Lehman Aviation Center.............................750
  16250  Security Programs.......................................-4,000
Undistributed:
  16600  Threat Representation and Validation (TR&V)..............1,100
  16620  Information Assurance Initiative for Air Force Materiel 
    Command.......................................................1,100
  16630  Un-obligated Balances..................................-17,600
  16700  Southwest Asia CONOPS Costs...........................-707,550
  16710  Administration and Servicewide Activities..............-30,000
  16720  Base Operations Support...............................-150,000
  16730  Civilian Pay Overstatement.............................-37,600
  16740  Demonstration Projects for Contractors Employing Persons with 
    Disabilities..................................................1,400
  16750  Joint Personnel Recovery Agency..........................2,800
  16760  Feasibility Study of Biennial International Air-Trade Sho1,000
  16770  People Movers..............................................500

       Feasibility Study of Biennial International Air-Trade Show

       The conference agreement provides an additional $1,000,000 
     in Operation and Maintenance, Air Force only to provide 
     assistance to a community, to be selected by the Secretary of 
     Defense, for expenses of a study by that community of the 
     feasibility of the establishment and operation of a biennial 
     international air-trade show in the area of the community, 
     and to support initial implementation of the international 
     air-trade show. The conferees expect that a competitive 
     process will be used to select the community, and that 
     preference will be given to communities that already sponsor 
     an air show, have demonstrated a history of supporting air 
     shows with local resources, and have a significant role in 
     the aerospace community.

                 F-16 Simulator Motion Upgrade Program

       The conferees have provided an additional $1,000,000 in 
     Operation and Maintenance, Air Force, to be used only for 
     phase 1 integration and testing of a pneumatic tactical 
     motion control system for the ACES II ejection seat in the F-
     16 Mission Training Center.

                             People Movers

       The conferees have provided an additional $500,000 in 
     Operation and Maintenance, Air Force, to be used only to 
     purchase 50 self-balancing, non-tandem, wheeled individual 
     transportation devices to evaluate military utility of such 
     devices at Tinker Air Force Base for a variety of military 
     functions.

                   Contaminant Air Processing Systems

       The conferees commend the Air Force for standardizing 
     mission critical equipment that allows Air Force personnel to 
     be effectively processed after contact with biological, 
     chemical or nuclear agents. The conferees encourage the 
     Secretary of the Air Force to purchase contaminant air 
     processing systems and related components to ensure all Air 
     Force installations are standardized in this methodology and 
     equipment.

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[[Page H8572]]

                    Adjustments to Budget Activities

       The adjustments to the budget activities for Operation and 
     Maintenance, Defense-Wide are shown below:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  17050  TJS--Combating Terrorism Readiness Initiative Fund......-5,000
  17100  SOCOM--Hydration on the Move System 
    Basic/Chemical/Biological.....................................1,000
  17100  SOCOM--Knowledge Superiority for Transitional Warfighter 
    Project (continuation only)...................................1,700
  17100  SOCOM--COCOM's TSOCs and CENTCOM CRE....................15,406
  17100  SOCOM--ONW/OSW/ODS Conops..............................-15,406
  17100  SOCOM--SOCOM Flying Hour Program........................23,466
Budget Activity 3: Training and Recruiting:
  17460  DAU--Distance Learning and Performance...................2,600
  17480  DHRA--Joint Advertising Market Research and Studies Progr7,500
Budget Activity 4: Administration and Servicewide Activities:
  17750  CMP--Challenge/Starbase..................................5,000
  17750  CMP--Innovative Readiness Training Program...............5,000
  17775  Classified Programs...................................-101,832
  17800  DISA--ONW/OSW/ODS Conops...............................-57,105
  17800  DISA--Excessive Growth.................................-35,000
  17925  DLA--Defense Policy Analysis Office....................-15,700
  17925  DLA--Theater Support Center Feasibility Study............1,000
  17975  DODEA--Jason Foundation....................................800
  17975  DODEA--I-Safe............................................1,000
  17975  DODEA--Lewis Center for Educational Research.............3,000
  17975  DODEA--Family Advocacy Program..........................22,000
  17975  DODEA--Technology Training in Military Schools (only to 
    provide DODEA teachers and administrators professional development 
    training in classroom technology)...............................500
  17975  DODEA--Professional Development Project for DoDEA (only for 
    improving instruction for students with Dyslexia).............1,200
  17975  DODEA--DoDEA Mathematics and Technology Teachers Developm1,000
  17975  DODEA--Galena IDEA Distance Learning Program.............5,000
  18025  DSCA--Counterterrorism Training and Equipment.........-200,000
  18050  DSS--Program Justification.............................-12,500
  18075  DTRA--ONW/OSW/ODS Conops................................-1,056
  18100  OEA--George AFB..........................................3,400
  18100  OEA--Norton AFB..........................................3,400
  18100  OEA--Bayonne Military Ocean Terminal.....................4,200
  18100  OEA--Cecil Field.........................................1,200
  18100  OEA--Charles Melvin Price Support Center.................1,000
  18100  OEA--CCAT................................................4,500
  18100  OEA--March Joint Powers Authority--Arnold Heights Reuse 
    Project.......................................................1,000
  18100  OEA--Hunters Point Naval Shipyard........................2,200
  18100  OEA--Asbestos Removal at Eaker AFB.........................250
  18100  OEA--UCHSC--DCH Fitzsimons Medical Center................6,000
  18100  OEA--Hangar Renovation at Griffis AFB......................500
  18100  OEA--McClellan AFB Remediation...........................4,900
  18100  OEA--Port of Anchorage Intermodal Marine Facility Project5,000
  18100  OEA--Environmental Study of the former NIKE Missile Site...250
  18100  OEA--David's Island Fort Slocum Remediation..............1,500
  18100  OEA--Fibers Cleanup at Front Royal.......................6,000
  18100  OEA--Knollwood Special Care Unit.........................1,500
  18125  OSD--Public Affairs....................................-10,000
  18125  OSD--Information Support to SO/LIC.....................-13,000
  18125  OSD--Net Assessment.....................................-5,000
  18125  OSD--Office of Force Transformation.....................-1,200
  18125  OSD--OSD Contract and Support..........................-10,000
  18125  OSD--PA&E Long Range Planning...........................-2,579
  18125  OSD--Base Information System...........................-10,000
  18125  OSD--C4I Program Growth................................-30,000
  18125  OSD--AT&L Program Growth...............................-30,000
  18125  OSD--Middle East Regional Security Program...............1,400
  18125  OSD--Study on Internet and wireless Technology...........1,000
  18125  OSD--Arctic Military Environmental Cooperation Program...2,500
  18125  OSD--Command Information Superiority Architectures.......1,000
  18125  OSD--Export Control Information to Foreign Countries.....1,400
  18125  OSD--Young Patriots Program (National Flag Foundation to 
    expand the Young Patriots Program to include a video which promotes 
    the significance of National Patriotic Holidays)..............1,000
  18125  OSD--Asia--Pacific Regional Initiative..................14,000
  18125  OSD--Employer Support of the Guard and Reserve (ESGR)....2,000
  18125  OSD--Information Assurance Scholarship Program...........2,100
  18125  OSD--Dedicated Fiber Optic Network.......................1,500
  18125  OSD--OSD/CSIS Beyond Goldwater-Nichols Study.............1,000
  18200  TJS--NDU XXI.............................................2,500
  18200  TJS--NDU Technology Pilot Program........................1,000
Undistributed:
  19010  Impact Aid..............................................30,000
  19015  Impact Aid for Children with Disabilities................5,000

                        Family Advocacy Program

       The conferees agree to provide an additional $22,000,000 
     for the Department's Family Advocacy Program (FAP). These 
     funds are to be used for the activities described under this 
     heading in House Report 108-187. Of the additional amount 
     provided for FAP, the conferees direct that $900,000 be 
     available to initiate the National Domestic Violence Hotline 
     Awareness, Intervention, and Prevention Campaign in the 
     military services.

                     Beyond Goldwater-Nichols Study

       The conferees agree to provide $1,000,000 to the Office of 
     the Secretary of Defense to support the comprehensive review 
     of the management organization and procedures of the 
     Department of Defense, to include the interagency process for 
     pre- and post-conflict coordination, otherwise known as the 
     ``Beyond Goldwater-Nichols'' study.

                  Women in Military Service in America

       The conferees urge that $500,000 of the funds under the 
     heading ``Operation and Maintenance, Defense-Wide'', be made 
     available for the Women in Military Service for America 
     Memorial Foundation.

                     Office of Economic Adjustment

       The conferees have transferred Environmental Study of 
     Former NIKE Missile Site, David's Island Fort Slocum 
     Remediation and Fibers Clean-up Front Royal to the OEA 
     account within Operation and Maintenance, Defense-Wide.

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[[Page H8575]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  19530  Extended Cold Weather Clothing System....................4,200
  19570  All Terrain Military Utility Vehicles....................4,000
  19570  Equipment Storage Site Initial Operation.................1,000
  19680  Base Support/Unfunded Requirements......................40,000
Other Adjustments:
  20190  Military Technicians Cost Avoidance.....................-7,000
  20200  Controlled Humidity Protection...........................3,400
  20210  Software Engineering Institute...........................1,000

                     Controlled Humidity Protection

       The conferees recommend $3,400,000 above the budget request 
     for implementation of the Controlled Humidity Protection 
     program for critical equipment storage. Of the funds 
     provided, $1,700,000 is only for the U.S. Army Reserve 9th 
     Regional Support Command.

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[[Page H8578]]

         
         
         
         

                    Adjustments to Budget Activities

       Adjustment to the budget activities is as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  21800  Littoral Surveillance System SCIF........................1,000
  
  
  
  

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[[Page H8581]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Other Adjustments:
  25660  Military Technicians Cost Avoidance....................-12,000
  25665  932nd Airlift Wing Operations and Training..............12,200

                          Aerial Spray System

       The conferees recommend $1,000,000 from funds available for 
     Operation and Maintenance, Air Force Reserve only for Aerial 
     Spray System enhancements for the Youngstown, Ohio Air 
     Station.

                           932nd Airlift Wing

       The conferees recommend $12,200,000 above the budget 
     request for operations at the 932nd Airlift Wing, Scott Air 
     Force Base, during fiscal year 2004. Of this amount, 
     $10,200,000 is to continue operations of C-9 aeromedical 
     evacuation aircraft and $2,000,000 is for aircrew training in 
     support of a successor mission/airframe (such as the C-40). 
     The conferees also recommend a general provision, section 
     8142, which directs the Secretary of the Air Force to study 
     the current mission of this airlift wing, and evaluate the 
     possibility of a mixed mission of transporting patients, 
     passengers and cargo.

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[[Page H8584]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  26180  Extended Cold Weather Clothing System....................3,000
  26260  Military Vehicle Tires...................................1,000
  26320  Cannon Bore Cleaning.....................................1,000
  26320  Communicator-Automated Emergency Notification System.....1,100
  26320  Ethan Allen Range Improvements.............................500
  26420  Base Operations Support/Unfunded Requirements...........30,000
  26480  Sustain Fiscal Year 2003 Increase in Military Technician25,000
Budget Activity 4: Administration and Servicewide Activities:
  26680  Information Operations Training and Operations...........2,800
  26680  Advanced Information Technology Services (AITS).........12,800
  26680  Multimedia Security Technology...........................3,000
Other Adjustments:
  26820  Angel Gate Academy.......................................3,400
  26830  National Emergency and Disaster Information Center.......2,500
  26890  Joint Training and Experimentation Program...............4,200
  26490  Rural Access to Broadband Technology.....................3,400
  26970  National Guard Global Education Project....................500
  27010  Information Assurance....................................1,700
  27057  Southeast Regional Terrorism Training....................3,400
  27090  National Response Center WMD Facility....................1,500
  27100  Advance Emergency Medical Response Training Program......1,500
  27110  Homeland Operational Planning System.....................2,000
  27130  Information Technology Leadership Program................1,700
  27140  Advanced Information Technology Services C4ISR...........1,400
  27150  Expandable Light Air Mobility Shelters (ELAMS)...........1,300
  27160  Gas Chromatograph-Mass Spectrometers.......................300
  27170  Domestic Emergency and Terrorist Response Information....1,700
  27180  Northeast Counter-Drug Training Center...................5,100
  27190  Integrated Emergency Operations Center...................3,400
  27200  Weapons of Mass Destruction Education and Training.......1,700
  27310  Military Technician Cost Avoidance.....................-13,000
  27320  Construction Transition Program..........................1,400
  27330  Lewis and Clark Bicentennial Activities....................250
  27335  WMD Civil Support Teams.................................16,000
  27340  Salute Our Services......................................2,000
  27341  National Guard Tracking System...........................1,700

                 Northeast Counter Drug Training Center

       The conferees recommend $5,100,000 above the budget request 
     for the Northeast Counter Drug Training Center only to 
     continue in-service evaluation of the CL-415 multi-mission 
     aircraft.

                          Civil Support Teams

       The conferees agree to provide funding for 12 additional 
     National Guard Weapons of Mass Destruction Civil Support 
     Teams (WMD-CST). The conferees believe that, as the National 
     Guard begins establishing these new civil support teams, 
     priority should be given to states facing significant port 
     security and other coastal security challenges.

                        National Response Center

       The conferees applaud the success of the National Response 
     Center WMD Consequence Management and Counter-Terrorism 
     facility, which provides a unique training and equipment 
     testing venue for local, state and federal agencies 
     responsible for responding to WMD emergencies.

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[[Page H8586]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  27650  Defense Systems Evaluation Joint Test Support Program....1,000
  27700  Surveying Systems........................................1,000
  27700  All Terrain Military Utility Vehicles....................1,400
  27700  Extended Cold Weather Clothing System....................1,400
  27750  Base Support/Unfunded Requirements......................30,000
  27800  Facilities Sustainment, Restoration and Modernization/
    Rickenbacker Air National Guard Base..........................1,400
Budget Activity 4: Administration and Servicewide Activities:     2,100
  28050  Information Assurance Activities.........................2,100
  28050  IT Consolidation/Storage Area Network....................2,100
Other Adjustments:
  28160  National Guard State Partnership Program.................2,100
  28170  Project Alert............................................1,970
  28290  Military Technicians Cost Avoidance....................-18,000
  28310  IT Consolidation.........................................2,100

                        Jefferson Proving Ground

       The conferees direct the Departments of the Army and the 
     Air Force to finalize the real property instruments that 
     would provide the Indiana Air National Guard the immediate 
     use of the 50-acre laser bombing range located at Jefferson 
     Proving Ground in southeastern Indiana.

            Overseas Contingency Operations Transfer Account

       The conference agreement provides $5,000,000 for the 
     Overseas Contingency Operations Transfer Account.

          United States Court of Appeals for the Armed Forces

       The conference agreement provides $10,333,000 for the 
     United States Court of Appeals for the Armed Forces.

                    Environmental Restoration, Army

       The conference agreement provides $396,018,000 for 
     Environmental Restoration, Army.

                    Environmental Restoration, Navy

       The conference agreement provides $256,153,000 for 
     Environmental Restoration, Navy.

                    Walker River Paiute Tribal Lands

       Not later than September 30, 2004, the Secretary of the 
     Navy shall report to the congressional defense committees on 
     the impact of naval aircraft live ordnance training on the 
     lands of Walker River Paiute Tribe in Nevada since the 
     establishment of the training area currently known as Bravo 
     19 in support of Fallon Naval Air Station. The report should 
     also include the estimated fair market value and remediation 
     costs associated with the environmental impact to the tribal 
     lands.

                  Environmental Restoration, Air Force

       The conference agreement provides $384,307,000 for 
     Environmental Restoration, Air Force.

                Environmental Restoration, Defense-Wide

       The conference agreement provides $24,081,000 for 
     Environmental Restoration, Defense-Wide.

         Environmental Restoration, Formerly Used Defense Sites

       The conference agreement provides $284,619,000 for 
     Environmental Restoration, Formerly Used Defense Sites, 
     instead of $221,369,000 as proposed by the House and 
     $312,619,000 as proposed by the Senate.

             Overseas Humanitarian, Disaster, and Civic Aid

       The conference agreement provides $59,000,000 for Overseas 
     Humanitarian, Disaster, and Civic Aid.

                  Former Soviet Union Threat Reduction

       The conference agreement provides that $10,000,000 of the 
     funds appropriated under this heading shall be available only 
     to support the dismantling and disposal of nuclear 
     submarines, submarine reactor components, and warheads in the 
     Russian Far East, as proposed by the Senate. The House bill 
     did not address this matter.
       The House report provided that $39,400,000 requested for 
     the Proliferation Prevention Initiative (PPI) be redirected 
     for the elimination of strategic nuclear delivery systems and 
     for the establishment of on-site management offices. The 
     Senate report did not address this matter. The managers 
     direct that not to exceed $29,400,000 be made available for 
     the PPI, and that the remaining funds be allocated as 
     indicated in the House report. In addition, the managers 
     direct that no funds shall be obligated for the Proliferation 
     Prevention Initiative (PPI) until 15 days after the Under 
     Secretary of Defense (Comptroller) reports in writing to the 
     congressional defense committees on the following: (1) the 
     degree to which the PPI is fully consistent with the 
     authorization for, and core functions of, the Cooperative 
     Threat Reduction (CRT) program; and (2) an explanation of how 
     each proposed PPI country program leverages, rather than 
     duplicates or replaces, other U.S. government programs.

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[[Page H8588]]

                         Lead System Integrator

       The conferees direct the Undersecretary of Defense for 
     Acquisition, Logistics, and Technology to submit a report to 
     the congressional defense committees within 120-days of 
     enactment of the fiscal year 2004 Defense Appropriations Act 
     on steps the Department of Defense has taken to ensure that 
     the Lead Systems Integrator (LSI) contracting mechanism 
     maintains adequate safeguards. The report should include a 
     thorough review of how the Department intends to assure that 
     adequate firewalls exist between the parent company and the 
     LSI entity on active contracts.

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                      Stryker Brigade Combat Team

       In order to enhance Army transformation, the conferees 
     agree to provide an additional $35,000,000 to ensure fielding 
     of the fifth and sixth Stryker Brigade Combat Teams (SBCT). 
     The conferees direct that funding be made available 
     specifically for the advanced procurement for the fifth SBCT, 
     2/25 Infantry Division and sixth SBCT, 56th ARNG Brigade. The 
     Department of Defense shall ensure that future budgetary and 
     programmatic plans provide for fielding no fewer than six 
     SBCTs by 2008.

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                  Stryker Brigade Fielding Initiative

       The conferees have included $85,000,000 for the 
     acceleration and successful fielding of the Army's Stryker 
     Brigades, beginning with the 3rd SBCT. This increased funding 
     shall provide necessary equipment, logistics and other 
     procurement items to ensure an on-time and adequately 
     equipped fielding of the Army's SBCTs. The conferees direct 
     the Secretary of the Army to submit a report to the 
     Committees on Appropriations within 120 days of enactment of 
     the fiscal year 2004 Defense Appropriations Act on the Army's 
     plan to implement this funding guidance.

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[[Page H8623]]

                     E-2C Aerodynamic Improvements

       The conferees are aware that the Navy has investigated the 
     use of aerodynamic improvements such as strakes to obtain 
     improvements in handling characteristics and wind-over-deck 
     requirements of the E-2C thereby improving the safety and 
     performance of this platform. The conferees urge the Navy to 
     test and install boundary layer flow modifications to the E-
     2C using aerodynamic strakes.

                      USMC CH-46 Armor Replacement

       The conferees agree to provide $6,000,000 to procure 
     lightweight armor for the CH-46. Replacing the existing steel 
     armor with Kevlar will reduce the weight of the CH-46 by 
     almost 400 pounds, enabling the aircraft to carry two 
     additional combat loaded troops without degrading protection.

                                  V-22

       The conferees urge the Department of the Navy to set aside 
     funds available in this Act for the V-22 Osprey aircraft 
     procurement program for cost reduction measures, consistent 
     with past practices and levels.

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[[Page H8627]]

                           Tactical Tomahawk

       The conferees agree to provide a total of $355,288,000 
     instead of $485,588,000 as proposed by the House and 
     $272,288,000 as proposed by the Senate. In addition, the 
     conferees agree that the Navy may procure 350 missiles with 
     these funds instead of the 450 missiles recommended by the 
     House and the 267 missiles recommended by the Senate.
       The conferees do not agree to provide the $25,000,000 as 
     proposed by the House for tooling and testing equipment, 
     understanding that this requirement will be accommodated from 
     within funds previously made available to the Department of 
     Defense as part of the Emergency Wartime Supplemental 
     Appropriations Act (Public Law 108-11).
       Multi-year procurement contracting authority. The conferees 
     agree to approve the request for contracting authority for a 
     multi-year procurement of the Tactical Tomahawk missile as 
     proposed by the House.

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[[Page H8634]]

                        Virginia Class Submarine

       The conferees agree to provide a total of $1,511,935,000 as 
     requested for full funding of the fiscal year 2004 Virginia 
     Class submarine program as requested and proposed by the 
     Senate instead of $1,236,935,000 as proposed by the House. In 
     addition, the conferees agree to provide a total of 
     $827,172,000 for the advance procurement of the future 
     Virginia Class submarine program as proposed by the Senate 
     instead of $886,286,000 as proposed by the House. The 
     recommendation for advance procurement assumes a reduction of 
     $59,000,000 for the fiscal year 2005 program as proposed by 
     the senate and a reduction of $65,000,000 for each of the 
     fiscal year 2007 and 2008 programs as proposed by the Senate.
       The conferees agree with the views expressed by both the 
     House and the Senate with respect to the Navy's request for 
     the Virginia Class submarine.
       Multi-year procurement contracting authority. The conferees 
     agree with the Senate's proposal, approving multi-year 
     procurement contract authority for one Virginia Class 
     submarine per year for the term of the five-years. The Navy's 
     request to procure more than one submarine in fiscal year 
     2007 and 2008 is denied and the funds requested for advance 
     procurement of materials for these additional submarines have 
     not been appropriated.
       The conferees did not lightly agree to the Navy's request 
     for multi-year procurement for this program. The Navy's 
     request for multi-year procurement in this instance is a 
     significant departure from established practices and policies 
     of the Department of Defense. The House and Senate Committees 
     on Appropriations have maintained that multi-year procurement 
     authority should be granted in situations in which the 
     Service has accepted a fully tested and proven system and a 
     production capability has been fully established. In the case 
     of this system, the lead ship, christened August 16, 2003, 
     has not been fully tested and will not be delivered to the 
     Navy until late 2004.
       In addition, multi-year procurement authority should be 
     applied in situations in which the program management and 
     costs have stabilized and significant (at least 10 percent) 
     cost savings are guaranteed with approval of such authority. 
     The conferees agree that the increasing costs (31 percent 
     increase over the previous year's estimate) and limited cost 
     savings (approximately 4 percent) for this program, would 
     under customary rules, not allow for its consideration for 
     multi-year procurement authority.
       The conferees agree to deviate from traditional policy with 
     respect to multi-year procurement authority in the case of 
     the Virginia Class submarine with the expectation that such 
     approval will serve to stabilize the program and reduce the 
     overall costs to the government. Furthermore, the conferees 
     agree that a multi-year contract for five submarines, or one 
     per year, is in the best interests of the taxpayer. It is for 
     these reasons that the conferees have provided multi-year 
     procurement authority for the Virginia Class submarine. The 
     Navy should note that the Committees on Appropriations will 
     continue to closely monitor this program and may re-examine 
     the decision to grant multi-year procurement authority if 
     program milestones are not met or costs escalate.
       Current contractual agreement. The conferees find that the 
     current contractual agreement for the Virginia Class 
     submarine that the Navy awarded in August 2003, referred to 
     as the ``block buy agreement,'' includes positive and 
     negative aspects.
       The signing of the block buy agreement committed the Navy 
     to purchasing six submarines over five years, two to be 
     purchased in fiscal year 2007, which is a clear violation of 
     both the House and Senate fiscal year 2004 Department of 
     Defense Appropriations bills (H.R. 2658 and S. 1382). Neither 
     of these bills approved the procurement of two submarines in 
     fiscal year 2007 or 2008. Further, while the block grant 
     agreement is subject to appropriations, should Congress not 
     provide an appropriation for two submarines in 2007, the 
     agreement allows for a drastic increase in overhead rates at 
     the affected shipyards, causing a significant retroactive 
     cost increase to the four previously purchased vessels.
       The conferees believe it was inappropriate for the Navy to 
     enter into an agreement that disregarded Congressional views 
     and subject taxpayers to additional costs should a future 
     Congress choose not to purchase more than one submarine in 
     2007.
       The conferees are pleased however, that the block grant 
     agreement includes incentives for both the Navy and the 
     commercial shipyards to meet schedule milestones and cost 
     limitations. The conferees believe that the incentives 
     included in the block grant buy agreement should be the 
     beginning point in any future contract negotiations for 
     construction, overhaul, and maintenance of Navy vessels. The 
     conferees strongly encourage the Navy to continue pursuing 
     contractual arrangements that maintain cost and schedule 
     milestones, understanding that these contracts also require 
     the Navy to enforce discipline in its requirements process to 
     ensure that requests for workload increases do not jeopardize 
     agreed to cost and schedule milestones.
       Information provided to Congress. The conferees agree with 
     the Senate that the Navy must provide Congress with complete 
     financial and program information on the Virginia Class 
     submarine program.

                         Cruiser Modernization

       The conferees agree to provide $102,700,000 for the purpose 
     of initiating a program to modernize and upgrade 22 
     Ticonderoga Class AEGIS Cruisers. The funds provided for the 
     program have been transferred from the Shipbuilding and 
     Conversion, Navy account to the Weapons Procurement, Other 
     Procurement and Operation and Maintenance, Navy 
     appropriations.
       The conferees are pleased that the Navy has recently 
     formalized the requirements and acquisition strategy for this 
     program, but concur with the concerns expressed in the Senate 
     report regarding upgrading, CG 71, one of the newest and most 
     modern Cruisers in the fleet before upgrading legacy assets. 
     The conferees agree the Navy should pursue a plan that would 
     modernize the Baseline II or legacy fleet assets at a point 
     earlier than the current strategy allows. Therefore, while 
     the conference agreement includes funding for CG 71 to be the 
     first vessel of the program, the conferees direct the Navy to 
     revise its strategy to provide for an earlier modernization 
     of the legacy Baseline II vessels and fully fund this revised 
     strategy within the fiscal year 2005 budget request.

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[[Page H8645]]

                     Thermal Imaging Sensor System

       The conferees are pleased with the progress that has been 
     made on upgrading the Thermal Imaging Sensor System (TISS), 
     which can provide significant increases in force protection. 
     The conferees request the Navy consider increasing funds for 
     TISS beyond the $4,400,000 provided in this Act.

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[[Page H8655]]

                    Transport Aircraft Requirements

       The conferees direct that not later than 180 days after 
     enactment of this legislation, the Secretary of the Air Force 
     shall provide a report to the congressional defense 
     committees detailing a proposed approach for addressing 
     official air travel requirements and prioritization of 
     aircraft use associated with Special Air Missions. The report 
     shall include the current retirement schedule of existing 
     aircraft, preferred replacement aircraft types, quantities, 
     acquisition alternatives for both new and used aircraft, 
     corresponding total cost of operation, and base(s) of 
     assignment.

             U-2 Advanced Synthetic Aperture Radar (ASARS)

       The conferees agree with the concerns expressed by the 
     House with respect to the ASARS program, amending to January 
     15, 2004, the date for which the requested report is due.

                Predator B Unmanned Aerial Vehicle (UAV)

       The conferees agree that the Air Force shall submit no 
     later than December 1, 2003, a report that addresses the 
     operational requirement for the Predator B UAV and a 
     development and acquisition plan for achieving that 
     operational requirement with a steady production rate by 
     2006.

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[[Page H8667]]

                         Combat Training Ranges

       The conferees have reduced the requests for Combat Training 
     Ranges by $4,200,000. Funding for this program has been 
     reduced due to historically slow execution of program funds 
     included in the request. The conferees expect that this 
     reduction will be applied proportionately among the various 
     non-Congressional interest items and activities within this 
     program element.

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[[Page H8673]]

                  Advanced Seal Delivery System (ASDS)

       The House provided the funds as requested for advance 
     procurement for long lead items associated with the second 
     ASDS, but directed that none of the funds be obligated before 
     the first ASDS satisfactorily passes operational evaluation 
     and before the Milestone C decision assessing affordability 
     and effectiveness is completed. The Senate transferred the 
     funds requested to Research, Development, Test & Evaluation, 
     Defense-Wide. The conferees agree to provide the budget 
     request for advance procurement and concur with the direction 
     of the House. The conferees further direct that none of the 
     funds provided may be obligated or expended until 15 days 
     after the Secretary of the Navy notifies the defense 
     committees in writing of the Milestone C decision and 
     provides a detailed report on the program's revised cost 
     estimate and future budget requirements as validated by the 
     Cost Analysis and Improvement Group.

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[[Page H8675]]

                           Air National Guard

       The Senate recommended a specific increase of $20,000,000 
     for F-15 Engine Kits within the amounts provided to the Air 
     National Guard. The House concurs and the conferees agree to 
     provide $20,000,000 for F-15 Engine Kits.

                       Items of Special Interest

       The conferees agree that the National Guard and Reserve 
     equipment program shall be executed by the heads of the Guard 
     and Reserve components with priority consideration for 
     miscellaneous equipment appropriations given to the following 
     items: Air National Guard Threat Emitter, Handheld Standoff 
     Mine Detection System, Lightweight Maintenance Enclosure, 
     Intelligence Infrastructure, Improved Target Acquisition 
     System, F-16 Block 42 Re-engining Program, RAID Helicopter 
     Electro-Optical Sensor Upgrade, Common Bridge Transporter, 
     Extended Cold Weather Clothing System, F-16 and A-10 LITENING 
     AT Targeting Pod, M-COFT XXI, Theater Airborne Reconnaissance 
     System, Expandable Light Air Mobility Shelters, Movement 
     Tracking System, Laser Marksmanship Training System, 
     Bladefold Kits for Apache Helicopters, Engineer Mission 
     Modules for PLS, Tactical Firefighting Equipment, HMMWV, Up-
     Armored HMMWV, Construction Equipment SLEP, AN/PVS-7, AN/PVS-
     14, LITENING II, A-FIST XXI Simulation Trainers, A-FIST, AB/
     FIST Simulation Trainers, F-16 TARS/SAR, DFIRST, Abrams 
     Sidecar, Sidecar Embedded Diagnostic Systems for M1A1 tanks, 
     Combined Support Function Module Replacment Test Equipment 
     for DSESTS (CSFM), Self-Loading Trailer, M-109A6 Paladin 
     Rebuild, EST 2000, AF Reserve Command and Control 
     Communications Systems Upgrade, JSTARs NRE for procurement of 
     Re-engining, and FMTV.

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[[Page H8678]]

                       Joint Strike Fighter (JSF)

       The conferees agree to provide a total of $4,322,623,000 
     for continued development and testing of the F-35, Joint 
     Strike Fighter (JSF). This recommended level is $43,200,000 
     below the budget request, $88,800,000 above the level 
     recommended by the House, and $60,000,000 below the level 
     recommended by the Senate.
       The conferees agree to a reduction of $54,000,000 for 
     excessive management support, as proposed by the House, a 
     reduction of $56,000,000 and an increase of $52,800,000, as 
     proposed by the Senate, based on the inappropriate 
     application of inflation adjustments, and an increase of 
     $14,000,000 for risk reduction on the F-136 interchangeable 
     engine. The conference agreement to reverse the decision of 
     the JSF program office with respect to the application of 
     inflation adjustments, is based on the understanding that the 
     ``across the board inflationary adjustment'' was applied 
     disproportionately to the F-136 interchangeable engine 
     development, resulting in a $56,000,000 reduction to this 
     development effort. The conference agreement redistributes 
     this inflation adjustment to the entire program and restores 
     $52,800,000 to the engine development program, as proposed by 
     the Senate.

            Withholding of Research and Development Funding

       The conferees are concerned with the practice of 
     withholding a percentage of research and development funding 
     from programs, projects and activities. The conferees are 
     also concerned that many Department of Defense organizations 
     are charging ``taxes'' on funds that are appropriated to or 
     pass through the control of the organization, and that the 
     practices of withholding and ``taxing'' appropriated funds 
     appears widespread throughout the research and development 
     community, including headquarters, laboratories, and other 
     research entities.
       The conferees believe that the practice of altering the 
     level of appropriated funds via administrative ``withholds'' 
     or the administration of ``taxes'' without specific direction 
     from the Congress, violates the intent of Congress.
       The conferees, therefore, direct the Comptroller General to 
     review all of the research and development appropriation 
     accounts, at all levels, and submit a report to the House and 
     Senate Committees on Appropriations, no later than March 1, 
     2004, that details what fiscal year 2003 and 2004 programs, 
     projects and activities have been subject to administrative 
     withholds and ``taxes'' and the programs, projects and 
     activities to which these amounts were applied.

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[[Page H8706]]

                          Future Combat System

       The conferees share the view expressed in the reports 
     accompanying both the House- and Senate-passed versions of 
     the fiscal year 2004 Department of Defense Appropriations 
     bill that the Army must improve the structure of the budget 
     estimates in support of the Future Combat System (FCS). 
     Adding detail to the budget justification materials is 
     essential to justify the requested level of funding which 
     totals $1,701,331,000 in fiscal year 2004 and $13,243,904,000 
     over the Future Years Defense Plan (FYDP).
       Accordingly, the conferees direct that the Army establish 
     two separate program elements for the purpose of supporting 
     the FCS budget estimates. One program element shall include 
     funding estimates for the Non-Line of Sight Cannon and 
     resupply vehicle (NLOS-C). For fiscal year 2004, the 
     conferees direct that $353,242,000 of the funds requested for 
     the FCS program be made available only for NLOS-C. The 
     conferees recognize that NLOS-C is an element of the FCS 
     system of systems and that development of NLOS-C must be 
     coordinated with other elements of the FCS program. The 
     conferees further direct that this program is a special 
     interest item subject to prior approval reprogramming 
     procedures for the cumulative value of transfers in excess of 
     $20,000,000. In addition, the conferees direct the Secretary 
     of the Army to provide financial execution data on the NLOS-C 
     element of FCS including, but not limited to: obligations, 
     disbursements, and transfers.
       The balance of the funding requested for fiscal year 2004, 
     $1,348,089,000, shall be divided into the following projects 
     within a separate program element:

                       [In thousands of dollars]

Non-Line of Sight (NLOS) Launch system..........................102,971
Reconnaissance Platforms and Sensors............................284,925
Unmanned Ground Vehicles........................................186,768
Unattended Sensors...............................................17,432
Sustainment.....................................................139,239
Command and Control.............................................334,730
Manned Ground Vehicles..........................................282,024

       The conferees direct the Secretary of Defense to provide 30 
     days prior notification to the congressional defense 
     committees on the cumulative value of transfers in excess of 
     $20,000,000 into or out of these projects. In addition, the 
     conferees direct the Secretary of the Army to provide 
     quarterly financial reports to the congressional defense 
     committees that include, but are not limited to obligations, 
     disbursements, and transfers for each of these projects.

          Defense Language Institute Research and Development

       The conferees note that the Defense Language Institute 
     (DLI) is funded primarily through the Operation and 
     Maintenance, Army account. However, the conferees are aware 
     that DLI often undertakes research and development work on 
     technologies related to language, language learning, and 
     curriculum development. Accordingly, the conferees urge the 
     Secretary of the Army to establish a new program element code 
     within the Research, Development, Test and Evaluation, Army 
     account for the purpose of funding research and development 
     efforts at DLI. The conferees also recommend that the Army 
     provide a reasonable level of funding to support this effort 
     from the resources provided in this Act.

                Army MEMS-GPS/INS Technology Development

       The conferees agree to provide an additional $8,500,000 to 
     continue development and testing essential to achieve a low-
     cost inertial guidance system using high-g MEMS technology 
     and producing an anti-jam ``ultra-deeply coupled GPS/INS 
     hardware/software system'' from funding included for the 
     Excalibur artillery program. The conferees expect this joint 
     Army-Navy effort to be robustly funded in the fiscal year 
     2005 budget request and in the Future Years' Defense Program.

                      Objective Force Cost Module

       In fiscal year 2003, the conferees provided $3,600,000 to 
     fund the initial development phase of the Objective Force 
     Cost Module (OFCM), a cost analysis and estimating tool 
     critical to the on-time and on-budget deployment of the 
     Future Combat System (FCS). Given the positive development of 
     the OFCM tool to date and continuing concerns that the FCS 
     program keep its deployment and budget schedule, the 
     conferees encourage to Army to continue fiscal year 2004 
     funding of the OFCM program with available FCS funds.

         Neurotoxin Exposure Treatment Research Program (NETRP)

       The conferees are aware that the United States Army Medical 
     Research and Materiel Command is conducting excellent 
     research in investigating the underlying biologic mechanisms 
     and therapeutic interventions of neurodegenerative effects 
     caused by deployment, environmental and occupational 
     exposures. Therefore, the conferees recommend $26,000,000 for 
     the continuation of this research into Parkinsons and other 
     neurological disorders. The conferees note the success of the 
     collaborative work between the military, a non-profit 
     organization and an academic laboratory with distinguished 
     scientific credentials in this field that has helped 
     accelerate NETRP research and would urge the Army to continue 
     its support of this effort.

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[[Page H8736]]

                Anti-Submarine Warfare (ASW) Master Plan

       The conferees agree with the House position on the Navy's 
     development of the Anti-Submarine Warfare (ASW) Master Plan. 
     The conferees request the Navy provide the House and Senate 
     Committees on Appropriations with a full report of the 
     results and recommendations of ``Task Force ASW'' as well as 
     its plan for implementing the recommendations.

                            ``S'' Band Radar

       The conferees have agreed to fund the Navy's ``S'' Band 
     radar development as part of the DD(X) effort, as opposed to 
     a separate development effort as proposed by the House. The 
     conferees make this recommendation based on the Navy's 
     decision to choose the ``S'' Band radar over its original 
     recommendation of the ``L'' Band radar for DD(X).

                Cooperative Engagement Capability (CEC)

       The conferees understand that the Navy is potentially 
     pursuing a new strategy for Cooperative Engagement Capability 
     (CEC) development and system configuration. The conferees 
     understand that no decision has yet been made to change the 
     strategy as presented in the fiscal year 2004 budget request 
     which calls for spiral development of hardware and software 
     to a Block 2 configuration. The conferees understand that the 
     Navy may potentially alter the development and acquisition 
     strategy in such a manner as to affect the Block 2 program 
     presented in the fiscal year 2004 budget request.
       The conferees agree that should the Navy determine an 
     alternative strategy for CEC, the additional funds provided 
     in this Act for CEC Block 2 may be merged with and be 
     available for purposes similar to the purposes for which 
     appropriated. The conferees further agree that the Navy shall 
     ensure the House and Senate Committees on Appropriations are 
     fully apprised of the Navy's plans relative to changes in the 
     CEC acquisition strategy.

          Tac Air Directed Infra-Red Counter-Measure (TADIRCM)

       The conferees agree with the House position with respect to 
     the development of Tac Air Directed Infra-Red Counter-Measure 
     (TADIRCM) and direct that an initial suitability assessment 
     obtained through the Early Operational Assessment (EOA) be 
     submitted to the House and Senate Committees on 
     Appropriations within 60 days of completion of the EOA.

          Tactical Control System for Unmanned Aerial Vehicles

       The conferees agree with the House position that the fiscal 
     year 2004 request for the multi-Service Tactical Control 
     System (TCS) for multi-Service UAV control, is focused on 
     Navy-centric UAV systems that are neither multi-Service nor 
     interoperable with other UAV programs. The conferees also 
     agree the Navy has a requirement for a single system that 
     will support the operation of multiple UAVs from both fixed 
     and moving platforms and understand that the FireScout and 
     Global Hawk Maritime Demonstration platforms, the focus of 
     the 2004 TCS efforts, meet current Navy needs.
       Therefore, the conferees direct the Navy to restructure the 
     existing TCS program to focus on its requirements. The 
     conferees agree to provide $25,000,000 to support the 
     continued development of the Navy's TCS program required to 
     achieve this critical capability. The conferees direct that 
     no fiscal year 2004 funds may be obligated or expended for 
     TCS until the Navy submits a report to the House and Senate 
     Committees on Appropriations, which details its plan for this 
     restructured program. At a minimum, the report shall include 
     the Navy's requirement for the TCS system, a plan to meet 
     standards based on interoperability, and the Navy's UAV 
     roadmap that justifies the requirement for TCS.

                           Helios Replacement

       The conferees encourage the Office of Naval Research to 
     examine developing a high altitude, long endurance unmanned 
     aerial vehicle to replace the Helios in order to increase 
     capabilities for high data rate communications and remote 
     sensing.

              Future SIGINT Requirements/Joint ACS Program

       The conferees are pleased that in reviewing its future 
     SIGINT requirements, the Navy is pursuing a partnership with 
     the Army in the development, testing, and procurement of a 
     Joint multi-intelligence sensor and platform, the Aerial 
     Common Sensor (ACS).
       The conferees have provided $4,000,000 for the Navy to 
     initiate and pursue the development and fielding of this 
     Joint ACS program. The conferees direct the Navy to report to 
     the House and Senate Committees on Appropriations by March 1, 
     2004, on its requirements and future acquisition plans for 
     this program.

                  Uniformed Services UAV Requirements

       The development and use of Unmanned Aerial Vehicles (UAVs) 
     has become integral to each of the Uniformed Services 
     warfighting and operational plans. In many instances, there 
     are common requirements for these systems and similar 
     technologies that can meet these requirements.
       The conferees direct the Under Secretary of Defense for 
     Acquisition, Technology and Logistics, in consultation with 
     the Chief of Naval Operations, the Commandant of the Marine 
     Corps, the Chief of Staff of the Army, the Chief of Staff of 
     the Air Force, and the Commandant of the Coast Guard, to 
     submit a report, no later than April 1, 2004, to the House 
     and Senate Committees on Appropriations, which details the 
     common UAV requirements for each of the Uniformed Services.

                          Littoral Combat Ship

       The conferees have included $168,071,000 for continued 
     research and development of the Littoral Combat Ship (LCS), 
     the amount recommended by the House and $10,000,000 above the 
     amount recommended by the Senate.
       The conferees agree with the House language regarding the 
     need to refine the Navy's concept of operations in the 
     littoral battlespace to ensure that there is no duplication 
     of effort between LCS and other platforms. To this end, the 
     conferees direct the Navy to provide a report to the House 
     and Senate Committees on Appropriations, no later than March 
     1, 2004 that details the missions LCS will conduct in the 
     littoral battle space, which platforms and systems currently 
     conduct these missions, and what changes, if any, will be 
     made to future years' budgets to eliminate any duplication of 
     effort.
       In addition, in order to maintain focus on the LCS' mission 
     module development and integration, the conferees agree that 
     $51,000,000 of the funds provided for LCS is available only 
     for these efforts.

 Unforeseen Impact of Base Operations Funding on Future Naval Research 
                         Laboratory Activities

       The conferees are concerned about changes in the management 
     of base operations funding and its potential to adversely 
     impact ongoing and emergent research activities. The 
     conferees urge the Navy to be sensitive to the special nature 
     of such research activities and to ensure sufficient 
     flexibility to accommodate unforeseen research needs.

        Use of Research and Development Funding for Shipbuilding

       The conferees agree with the Senate concerning the Navy's 
     plans to fund the purchase of ships--DD(X) and LCS--in fiscal 
     year 2005 within the Research, Development, Test and 
     Evaluation (RDT&E) appropriation. The conferees believe that 
     the use of research and development funding to procure first 
     ships of a class is not in keeping with budgetary guidelines 
     regarding full-funding. The conferees agree that should the 
     fiscal year 2005 request include these ships--DD(X) and LCS--
     within RDT&E, all research and development acquisition rules 
     shall apply, including technology readiness reviews, 
     milestone decisions, and test and evaluation before these 
     ships may transition to procurement.

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[[Page H8754]]

                   Electronic Warfare Transition Plan

       The Senate included report language on the Air Force's 
     electronic warfare transition plan. The conferees remain 
     concerned about this issue and expect the Air Force to work 
     with the House and Senate Appropriations Committees to 
     address the concerns raised in the Senate report.

                            F-15E Squadrons

       The conferees have reduced funding for F-15E Squadrons by 
     $9,000,000. Activities in this program have continually had 
     schedule delays of up to 2 quarters, and the account is a 
     frequent source for reprogrammings and higher Air Force 
     priorities. The conferees note that this reduction is taken 
     only for the reasons stated and without prejudice against 
     efforts to field Operational Flight Program Suite 5, which 
     the conferees deem to be a high priority.

                         Next Generation Bomber

       The conferees have included $45,000,000 for acceleration of 
     a program to develop a next generation long-range strike 
     bomber. Many technologies needed for development of a next 
     generation bomber can also be demonstrated and incorporated 
     in the existing bomber fleet. The conferees urge that from 
     the funds provided for next generation bomber development, 
     the Air Force give consideration to the design and 
     demonstration of a data collection capability as an upgrade 
     to the Defense Management System on the B-2 bomber.

            Low Bandwidth Rural Telemedicine (Lbrts) System

       The conferees encourage the Air Force to accelerate the 
     deployment and integration of the Low Bandwidth Rural 
     Telemedicine (LBRTS) System from seven years to three years 
     to enhance the Air Force's telemedicine infrastructure. Any 
     funding for this program shall be made available from program 
     element 0602202F.

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[[Page H8771]]

                       Technology Venture Center

       The conferees agree to provide $1,600,000 for the 
     Technology Venture Center in Montana and for an 
     entrepreneurial training/virtual business incubator in Alaska 
     using science and technology.

                Spray Cooling Manufacturing Engineering

       The conferees are aware of the major contributions that 
     DMEA's spray cooling program has made to a number of defense 
     programs through its ability to allow commercial electronics 
     to operate successfully in harsh military environments while 
     reducing size and weight. The conferees urge the department 
     to standardize spray cooling technology components and 
     products to facilitate their migration to other military 
     programs. Accordingly, the conferees have added funding above 
     the president's request to continue its efforts to 
     standardize this important technology. The conferees also 
     encourage DMEA to continue its work with the services to 
     increase service familiarity with this advanced technology.

                 Terrorism Information Awareness (TIA)

       The conferees agree with the Senate position which 
     eliminates funding for the Terrorism Information Awareness 
     (TIA) program within the Defense Advanced Research Projects 
     Agency (DARPA). The conferees are concerned about the 
     activities of the Information Awareness Office and direct 
     that the Office be terminated immediately. The only research 
     projects previously under the jurisdiction of the Information 
     Awareness Office that may continue under DARPA are: Bio-Event 
     Advanced Leading Indicator Recognition Technology, Rapid 
     Analytic Wargaming, Wargaming the Asymmetric Environment, and 
     Automated Speech and Text Exploitation in Multiple Languages 
     (including Babylon and Symphony). The conferees find these 
     programs are not components of TIA for the purposes of 
     section 8131. The conference agreement does not restrict the 
     National Foreign Intelligence Program from using processing, 
     analysis and collaboration tools for counterterrorism foreign 
     intelligence purposes.

               Chemical Imaging for Food and Water Safety

       The conferees are aware of recent research which rapidly 
     measures the presence of pathogens in food and water by 
     chemical imaging. Successful implementation of this 
     technology will have a significant impact on the soldier in 
     the field and can be applied to commercial uses as well. The 
     conferees encourage the Department to consider further 
     research in this field.

                Chemical and Biological Defense Program

       Within funds provided for the Chem-Bio Defense Initiatives 
     Fund, the conferees recommend the creation of an end-to-end 
     point of care based diagnostic network to combat terrorism. 
     Funds should be distributed to partnerships that combine 
     universities and non-profit institutes with industrial 
     partners to insure rapid translation into clinical use.

                     Ground-Based Midcourse Defense

       Additional funding is provided to the Ground-based 
     Midcourse Defense program to procure additional Ground Based 
     Interceptors at Fort Greely; to enhance security measures to 
     protect this strategic facility; and to accelerate 
     installation of communications at Eareckson Air Station. The 
     conferees direct the Director of the Missile Defense Agency 
     to submit a report to the Committees on Appropriations within 
     120-days of enactment of the fiscal year 2004 Defense 
     Appropriations Act on the Department's plan to implement this 
     funding guidance.

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[[Page H8774]]

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       The conferees recommend an appropriation of $1,641,507,000 
     for the Defense Working Capital Funds instead of 
     $1,712,507,000 as proposed by the House or $1,449,007,000 as 
     proposed by the Senate.

                Defense Working Capital Fund Reductions

       The conferees concur with Senate Report 108-87 regarding 
     the adequacy of budget justifications for the Defense Working 
     Capital Funds. The conferees recommend a reduction of 
     $80,000,000 to the budget estimate, to be distributed only as 
     follows:

Working Capital Fund, Defense-Wide.........................-$40,000,000
Working Capital Fund, Air Force............................-$40,000,000

                  Meals Ready-to-Eat (MRE) Inventories

       The conferees are concerned that the current MRE inventory 
     does not provide adequate stock levels to meet documented war 
     reserve requirements. While the Department has identified a 
     war reserve requirement of 6.0 million cases of MRE's, 
     current inventory is only 3.4 million cases. The conferees 
     applaud the Defense Logistics Agency for identifying a higher 
     MRE war reserve requirement to improve the Department's long-
     term MRE war reserve requirement to improve the Department's 
     long-term sustainment posture. The conferees direct the 
     Secretary of Defense to fund that increase requirement in the 
     Department's fiscal year 2005 budget submission, with the 
     goal of a full war reserve inventory of MREs by fiscal year 
     2006.

                     National Defense Sealift Fund

       The conferees agree to provide $1,066,462,000 for the 
     National Defense Sealift Fund, $3,700,000 above the budget 
     request for the conversion of a former Naval vessel into a 
     training ship for the Great Lakes Maritime Academy. The 
     conferees further agree that within funds made available in 
     the National Defense Sealift Fund, $6,500,000 is available 
     only for the construction of additional sealift capacity.
       The conference agreement fully funds the construction of 
     the T-AKE program as requested.

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[[Page H8779]]

                      DHP Reprogramming Procedures

       The conferees remain concerned regarding the transfer of 
     funds from DoD military medical treatment facilities (MTFs) 
     to pay for contractor-provided medical care. To limit such 
     transfers within the Defense Health Program operation and 
     maintenance account, the conferees have included bill 
     language designating Private Sector Care under the TRICARE 
     program as a separate sub-appropriation within the Defense 
     Health Program. Any transfer of funds into or out of the 
     Private Sector Care sub-appropriation will require the 
     Department of Defense to follow prior approval reprogramming 
     procedures.

                 Myeloproliferative Disorders Research

       The conferees recommend $4,250,000 for research into the 
     specific chronic myeloproliferative disorders of the 
     polycythemia vera, idiopathic myelofibrosis, and essential 
     thrombocytosis. These disorders of the bone marrow are 
     malignant diseases that offer great research promise with 
     respect to the behavior of human blood cells. The conferees 
     direct that the Secretary of Defense, in conjunction with the 
     service Surgeons General, select basic or translational 
     medical research projects of clear scientific merit and of 
     direct relevance to military health.

                 Peer Reviewed Medical Research Program

       The Senate recommended $50,000,000 for a Peer Reviewed 
     Medical Research program. The conferees agree to provide 
     $50,000,000 for this program, and recommend the following 
     projects as candidates for study: amyotrophic lateral 
     sclerosis; alcoholism research; anti-diarrhea supplement; 
     blood-related cancer research; childhood asthma; chronic pain 
     research; epilepsy research; geneware rapid vaccine 
     development; interventional cardiovascular magnetic resonance 
     imaging technologies; muscle function research; Malaria 
     vaccine initiative [SBRI]; Muscular Dystrophy; osteoporosis 
     and bone related disease research; Padget's disease; 
     providence cancer research project; post traumatic stress 
     disorders; social work research; interstitial cystitis; 
     military medical informatics research; limb loss and 
     paralysis research; and Reserve component medical training 
     program.
       The conferees direct the Department to provide a report by 
     March 1, 2004, on the status of this Peer Reviewed Medical 
     Research Program.

               Cost Sharing for Medical Research Programs

       The conferees commend the Department for its management of 
     the peer reviewed medical research and cancer research 
     programs, but note with concern the challenge of funding 
     increases to these programs within the resources available 
     for military spending. Therefore, the conferees direct the 
     Assistant Secretary of Defense (Health Affairs), in 
     consultation with the service Surgeons General and the 
     Institute of Medicine, to investigate alternative funding 
     sources, including private sector and non-Federal 
     contributions, that can best be used to leverage appropriated 
     funds without biasing the peer review selection process. The 
     Department should report their findings and recommendations 
     when submitting their annual report on the status of the Peer 
     Review Medical Research Program, due on March 1, 2004.

                   Chropractic Health Care Initiative

       The Congress appropriated $750,000 in the Department of 
     Defense Appropriations Act 2003 (Pubic Law 107-248) under the 
     heading ``Defense Health Program'' for operation and 
     maintenance for the Chiropractic Initiative. The conferees 
     agree and direct the Department to make available from any 
     available balances, $750,000 to develop and carry out a joint 
     chiropractic health care initiative with the Texas 
     Chiropractic College.

                         Betances Health Center

       The Congress appropriated $500,000 in the Department of 
     Defense Appropriations Act 2003 (Public Law 107-248) under 
     the heading ``Defense Health Program'' for operation and 
     maintenance for the Betances Health Center. The conferees 
     agree and direct the Department to make available from any 
     available balances $500,000 to the Betances Health Center to 
     support the restoration of health care services.

                HealthForces/Outcomes Management Program

       The conferees agree with the Senate position on the Walter 
     Reed Army Medical Center's HealthForces/Outcomes Management 
     Program and note that a portion of the funds may be used for 
     collaborative projects for chronic disease management in 
     medically underserved, rural areas.

                        Disposable Toothbrushes

       The conferees encourage the Army to consider looking at the 
     viability of adding disposable toothbrushes to sundry packs.

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[[Page H8781]]

                           Sierra Army Depot

       The conferees have provided funding for the Sierra Army 
     Depot Cryofracture/Plasma Arc Demilitarization Program within 
     Research, Development, Test and Evaluation, Army as opposed 
     to the funding provided in the House bill.

         Drug Interdiction and Counter-Drug Activities, Defense

       The conference agreement includes $835,616,000 for ``Drug 
     Interdiction and Counter-drug Activities, Defense'' as 
     opposed to $817,371,000 as proposed by the House and 
     $832,371,000 as proposed by the Senate. Adjustments to the 
     budget request are as follows:

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[[Page H8783]]

                            Northern Command

       The Senate included report language expressing concern 
     about plans to consolidate some existing functions and 
     personnel currently residing with the regional Commands at 
     the newly created Northern Command and adjusted the budget 
     accordingly. The House shares these concerns. While the 
     conferees agree that Northern Command has a tremendous 
     responsibility for protecting the continental United States 
     from many threats to include those associated with counter-
     narcotics and fully support their requirements, they also 
     fully support the missions and expertise that reside with the 
     existing regional commands, most notably the United States 
     Pacific and Southern Commands. The conferees direct that none 
     of the resources or personnel to include those of the reserve 
     components currently assigned to Pacific Command or Southern 
     Command shall be diverted to Northern Command without 15 days 
     prior notification of the congressional defense committees. 
     The conferees have adjusted the budget to support their 
     recommendation.

                    Office of the Inspector General

       The conferees agree to provide $162,449,000, as proposed by 
     both the House and Senate, for the Office of the Inspector 
     General.

                      TITLE VII--RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

       The conference agreement appropriates $226,400,000 for 
     payment to the Central Intelligence Agency Retirement and 
     Disability System Fund, as proposed by both the House and the 
     Senate.

               Intelligence Community management Account


                     (including transfer of funds)

       The conference agreement appropriates $175,113,000 instead 
     of $170,640,000 as proposed by the House and $165,390,000 as 
     proposed by the Senate.
       The conference agreement provides for a transfer of 
     $44,300,000 to the Department of Justice for the National 
     Intelligence Center to support the Department of Defense's 
     counter-drug intelligence responsibilities, instead of 
     $46,100,000 as proposed by the House and $34,100,000 as 
     proposed by the Senate.

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

       The conference agreement provides $18,430,000 for the 
     Kaho'olawe Island Conveyance, Remediation, and Environmental 
     Restoration Fund as proposed by the Senate.

                 National Security Education Trust Fund

       The conference agreement appropriates $8,000,000 for the 
     purposes of title VIII of Public Law 102-183, to be derived 
     from the National Security Education Trust Fund, as proposed 
     by both the House and the Senate.

                     TITLE VIII--GENERAL PROVISIONS

       The conference agreement incorporated 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 8008) 
     which amends language recommended by the House and the Senate 
     with respect to the programs granted multi-year procurement 
     authority.
       The conferees included a general provision (Section 8014) 
     which amends House language regarding converting functions of 
     the Department of Defense to contractor performance, by 
     adding cost differential criteria; crediting conversions 
     toward outsourcing goals, and excluding depot contracts and 
     depot maintenance contracts.
       The conferees included a general provision (Section 8018) 
     which amends Senate language to require that the Department 
     of Defense budget submission for fiscal year 2005 shall 
     identify anticipated residual value settlements.
       The conferees included a general provision (Section 8049) 
     which amends House and Senate language recommending 
     rescissions. The rescissions agreed to are:


                             (Rescissions)

Fiscal Year 2001:
  Shipbuilding and Conversion, Navy: Auxiliaries Craft and Prior Year 
    Program Costs............................................$3,835,000
Fiscal Year 2002:
  Shipbuilding and Conversion, Navy: Auxiliaries Craft and Prior Year 
    Program Costs.............................................9,336,000
Fiscal Year 2003:
                                            Aircraft Procurement, Army:
    Chinook..................................................39,100,000
    A2C2S.....................................................8,000,000
  Weapons and Tracked Combat Vehicles, Army: M1A2............30,000,000
  Procurement of Ammunition, Army: CTG, 40MM, All Types......36,000,000
  Other Procurement, Army: Advanced Aviation Instrumentation Training 
    Simulator.................................................8,000,000
  Other Procurement, Air Force: Classified...................10,000,000
                                             Procurement, Defense-Wide:
    EC-130J Upgrades.........................................15,000,000
    DIRCM Laser..............................................33,000,000
                      Research, Development, Test and Evaluation, Army:
    Environmental Medical Unit................................1,650,000
    Classified Program........................................1,339,000
  Research, Development, Test and Evaluation, Defense-Wide: SOF 
    Tactical Systems.........................................25,000,000
  National Defense Sealift Fund: Unobligated Balance........105,300,000

       The conferees included a general provision (Section 8082) 
     which amends Senate language regarding the Under Secretary of 
     Defense for Intelligence. The conference agreement requires a 
     quarterly report from the Secretary of Defense, the contents 
     of which are discussed in the classified annex accompanying 
     the conference report.
       The conferees included a general provision (Section 8083) 
     which amends Senate language providing that government travel 
     card and purchase card refunds may be credited to operation 
     and maintenance accounts for fiscal year 2005.
       The conferees included a general provision (Section 8091) 
     which amends language recommended by the House and Senate to 
     make funds available for transfer to other activities of the 
     Federal Government, and provides funds for certain classified 
     activities.
       The conferees included a general provision (Section 8093) 
     which amends House language which provides $2,000,000 for 
     construction and furnishing of additional Fisher Houses to 
     meet the needs of military family members when confronted 
     with the illness or hospitalization of an eligible military 
     beneficiary. The Senate recedes. The conferees are aware that 
     the nonappropriated fund instrumentalities (NAFI) which were 
     established by law to help defray the operating costs of 
     Fisher Houses have decreased in value due to poor financial 
     market performance. The conferees are also aware that the 
     costs to manage many Fisher Houses are much higher than 
     planned due to an influx of patients at military treatment 
     facilities as a result of casualties suffered during 
     operations IRAQI FREEDOM and ENDURING FREEDOM. The conferees 
     provide $1,800,000 in the Defense Health Program to help 
     mitigate any deficit, which will occur in fiscal year 2004. 
     The conferees direct the Secretary of Defense to analyze the 
     financial condition of the Fisher House operating accounts 
     and submit with the fiscal year 2005 budget a plan to ensure 
     their solvency without increasing the current service fee 
     paid by military family members.
       The conferees included a general provision (Section 8094) 
     which amends House language regarding funds reduced from 
     certain operation and maintenance and research, development, 
     test and evaluation accounts for savings or excessive growth 
     in advisory assistance services, support services, analysis, 
     engineering and technical support contracted by the military 
     departments and defense agencies.
       The conferees included a general provision (Section 8095) 
     which amends Senate language making $80,000,000 available for 
     component coproduction for the Arrow Missile Defense Program.
       The conferees included a general provision (Section 8096) 
     which amends Senate language to provide funds only for 
     transfer to the Coast Guard for mission essential equipment 
     for HC-130J aircraft.
       The conferees included a general provision (Section 8101) 
     which amends House language which reduces $200,000,000 of 
     operation and maintenance funds for cost growth information 
     technology development.
       The conferees included a general provision (Section 8104) 
     which amends House language on the amounts reduced from 
     working capital fund excess cash balances.
       The conferees included a general provision (Section 8105) 
     which amends House language regarding the amount reduced in 
     ``Operation and Maintenance, Navy'' for excess funded 
     carryover.
       The conferees included a general provision (Section 8108) 
     which amends Senate language to retain a total of 94 B-52 
     aircraft by providing a total funding amount of $40,600,000.
       The conferees included a general provision (Section 8109) 
     which amends Senate language that restores a fiscal year 2003 
     provision which makes $8,000,000 available in ``Operation and 
     Maintenance, Air Force'' for railroad tack realignment by 
     adding a provision which makes $26,000,000 from funds 
     available in ``Operation and Maintenance, Air Force'' for 
     phased infrastructure repairs for Air Force managed ranges in 
     Alaska.
       The conferees included a general provision (Section 8112) 
     which amends House and Senate language which provides for 
     grants to various organizations.
       The conferees included a general provision (Section 8115) 
     which amends Senate language specifying certain budget 
     justification documents required for overseas contingency 
     operations.
       The conferees included a general provision (Section 8117) 
     which amends Senate language making classified transfer of 
     funds.
       The conferees included a general provision (Section 8122) 
     which amends House language to prohibit the disestablishment 
     of the 53rd Weather Reconnaissance Squadron of the Air Force 
     Reserve and which allows the Squadron to perform other 
     missions in support of national defense requirements during 
     the non-hurricane season.
       The conferees included a general provision (Section 8125) 
     which amends House language which provides for $17,000,000 in 
     ``Operation

[[Page H8784]]

     and Maintenance, Army'' only for a grant to the Silver Valley 
     Unified School District for the purpose of school 
     construction at Fort Irwin, California.
       The conferees included a general provision (Section 8126) 
     which amends House language reducing certain accounts in 
     Operation and Maintenance for efficiencies in management, 
     outsourcing, and improved economic assumptions.
       The conferees included a general provision (Section 8127) 
     which amends House language that reduces the amount available 
     in ``Operation and Maintenance, Air Force'' for excess cash 
     in the Transportation Working Capital Fund.
       The conferees included a general provision (Section 8128) 
     which amends Senate language to rescind funds available in 
     the ``Iraq Freedom Fund'' provided in Public Law 108-11.
       The conferees included a general provision (Section 8129) 
     which amends House language to allow the Secretary of Defense 
     to make additional payments to those local educational 
     agencies who have children with severe disabilities.
       The conferees included a general provision (Section 8131) 
     which amends Senate language concerning the Terrorism 
     Information Awareness Program.
       The conferees included a general provision (Section 8132) 
     which amends House Language that directs the Secretary of the 
     Navy to close Naval Station Roosevelt Roads, Puerto Rico. The 
     closure and disposal of Naval Station Roosevelt Roads (NSRR) 
     is a logical step in the process of relocating Naval training 
     activities and training support from the NSRR area to other 
     training facilities along the Gulf and Atlantic coasts. The 
     conferees recognize the record of high quality service and 
     support established by the military personnel, federal 
     civilian employees and local contractors at NSRR. The 
     conferees encourage the Navy to take great care in relocating 
     military personnel and families, in assisting civilian 
     employees with relocation and outplacement and in performing 
     environmental cleanup. The conferees strongly encourage the 
     Department of the Navy to work with the Department of Defense 
     Education Activity (DoDEA) to ensure the operation of base 
     schools through completion of the 2003 to 2004 academic year. 
     The accompanying bill establishes a process for property 
     closure and disposal in accordance with the Defense Base 
     Closure and Realignment Act of 1990 (title XXIX of Public Law 
     101-510; U.S.C. 2687 note).
       The conferees included a general provision (Section 8138) 
     which amends Senate language regarding a report from the 
     Secretary of Defense on contractual offset agreements with 
     foreign countries.
       The conferees included a general provision (Section 8141) 
     which amends Senate language to prohibit funds to be 
     obligated or expended on the decommissioning of a Naval or 
     Marine Corps Reserve aviation squadron until the Comptroller 
     General of the United States submits a report on the 
     requirements for Navy and Marine Corps tactical aviation and 
     the role of Reserve assets in those mission requirements.
       The conferees concur with the intent of Senate section 8169 
     and direct that not later than 30 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the Committees on Appropriations of the House and the 
     Senate, a report on contracts for reconstruction and other 
     services in Iraq that are funded in whole or in part with 
     funds available to the Department of Defense. The report 
     shall detail:
       (1) The process and standards for designing and awarding 
     such contracts, including assistance or consulting services 
     provided by contractors in that process;
       (2) The process and standards for awarding limited or sole-
     source contracts, including the criteria for justifying the 
     awarding of such contracts;
       (3) Any policies that the Secretary has implemented or 
     plans to implement to provide for independent oversight of 
     the performance by a contractor of services in designing and 
     awarding such contracts;
       (4) Any policies that the Secretary has implemented or 
     plans to implement to identify, assess, and prevent any 
     conflict of interest relating to such contracts for 
     reconstruction;
       (5) Any policies that the Secretary has implemented or 
     plans to implement to ensure public accountability of 
     contractors and to identify any fraud, waste, or abuse 
     relating to such contracts for reconstruction;
       (6) The process and criteria used to determine the 
     percentage of profit allowed on cost-plus-a-fixed-fee 
     contracts for reconstruction or other services in Iraq; and
       (7) A good faith estimate of the expected costs and 
     duration of all contracts for reconstruction or other 
     services in Iraq.
       The conferees included a new general provision (Section 
     8145) which provides for the transfer of the Sturgeon Class 
     submarine NARWHAL (SSN-671) to the National Submarine Science 
     Discovery Center, Newport, Kentucky.
       The conferees included a new general provision (Section 
     8146) which allows the Department of Defense to waive 
     subsistence costs for those military personnel who are 
     hospitalized during fiscal year 2004 for combat injuries.

                   CONFERENCE TOTAL--WITH COMPARISONS

       The total new budget (obligational) authority for the 
     fiscal year 2004 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 2003 amount, the 2004 
     budget estimates, and the House and Senate bills for 2004 
     follow:

                       [In thousands of dollars]

New budget (obligational) authority, fiscal year 2003......$426,989,434
Budget estimates of new (obligational) authority, fiscal yea372,346,314
House bill, fiscal year 2004................................369,190,239
Senate bill, fiscal year 2004...............................369,165,293
Conference agreement, fiscal year 2004......................368,711,561
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 2003.....-58,277,873
  Budget estimates of new (obligational) authority, fiscal ye-3,634,753
  House bill, fiscal year 2004.................................-478,678
  Senate bill, fiscal year 2004................................-453,732

     Jerry Lewis,
     C. W. Bill Young,
     David L. Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Randy ``Duke'' Cunningham,
     Rodney P. Frelinghuysen,
     Todd Tiahrt,
     Roger F. Wicker,
     John P. Murtha,
     Norman D. Dicks,
     Martin Olav Sabo,
     Peter J. Visclosky,
     James P. Moran,
     David R. Obey,
                                Managers on the Part of the House.

     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete V. Domenici,
     Christopher S. Bond,
     Mitch McConnell,
     Richard C. Shelby,
     Judd Gregg,
     Kay Bailey Hutchison,
     Conrad Burns,
     Daniel K. Inouye,
     Ernest F. Hollings,
     Robert C. Byrd,
     Patrick J. Leahy,
     Tom Harkin,
     Byron L. Dorgan,
     Richard J. Durbin,
     Harry Reid,
     Dianne Feinstein,
     Managers on the Part of the Senate.

                          ____________________