[Congressional Record (Bound Edition), Volume 148 (2002), Part 14]
[House]
[Pages 19904-20168]
[From the U.S. Government Publishing Office, www.gpo.gov]




 CONFERENCE REPORT ON H.R. 5010, DEPARTMENT OF DEFENSE APPROPRIATIONS 
                               ACT, 2003

  Mr. LEWIS of California, submitted the following conference report 
and statement on the bill (H.R. 5010) making appropriations for the 
Department of Defense for the fiscal year ending September 30, 2003, 
and for other purposes:

                    Conference Report (H.R. 107-732)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     5010) ``making appropriations for the Department of Defense 
     for the fiscal year ending September 30, 2003, 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, 2003, 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, $26,855,017,000.

                        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, $21,927,628,000.

[[Page 19905]]



                    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, 
     $8,501,087,000.

                     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, $21,981,277,000.

                        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, 
     $3,374,355,000.

                        Reserve Personnel, Navy

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Navy 
     Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Reserve Officers' Training Corps, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund, $1,907,552,000.

                    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, $553,983,000.

                      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, 
     $1,236,904,000.

                     National Guard Personnel, Army

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     National Guard while on duty under section 10211, 10302, or 
     12402 of title 10 or section 708 of title 32, United States 
     Code, or while serving on duty under section 12301(d) of 
     title 10 or section 502(f) of title 32, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund, $5,114,588,000.

                  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, $2,125,161,000.

                                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 $10,818,000 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, $23,992,082,000: 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 
     the 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 $4,415,000 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, 
     $29,331,526,000.

                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, $3,585,759,000.

                  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 $7,902,000 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, $27,339,533,000: 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: Provided further, That of the amount 
     provided under this heading, $2,000,000 may be obligated for 
     the deployment of Air Force active and Reserve aircrews that 
     perform combat search and rescue operations to operate and 
     evaluate the United Kingdom's Royal Air Force EH-101 
     helicopter, to receive training using that helicopter, and to 
     exchange operational techniques and procedures regarding that 
     helicopter.

                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, $14,773,506,000, of which not to exceed 
     $25,000,000 may be available for the CINC initiative fund 
     account; and of which not to exceed $34,500,000 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, $750,000 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 $4,675,000, 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, 
     $1,970,180,000.

                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

[[Page 19906]]

     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications, 
     $1,236,809,000.

            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, $187,532,000.

              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, $2,163,104,000.

             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), $4,261,707,000.

             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, $4,117,585,000.

            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, $9,614,000, 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, $395,900,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Army, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

                    Environmental Restoration, Navy


                     (including transfer of funds)

       For the Department of the Navy, $256,948,000, 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, $389,773,000, 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, $23,498,000, 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, $246,102,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris at 
     sites formerly used by the Department of Defense, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

             Overseas Humanitarian, Disaster, and Civic Aid

       For expenses relating to the Overseas Humanitarian, 
     Disaster, and Civic Aid programs of the Department of Defense 
     (consisting of the programs provided under sections 401, 402, 
     404, 2547, and 2551 of title 10, United States Code), 
     $58,400,000, to remain available until September 30, 2004.

                  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, $416,700,000, to remain 
     available until September 30, 2005: 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 and submarine reactor components in the 
     Russian Far East.

        Support for International Sporting Competitions, Defense

       For logistical and security support for international 
     sporting competitions (including pay and non-travel related 
     allowances only for members of the Reserve Components of the 
     Armed Forces of the United States called or ordered to active 
     duty in connection with providing such support), $19,000,000, 
     to remain available until expended.

[[Page 19907]]



                               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, 
     $2,285,574,000, to remain available for obligation until 
     September 30, 2005: Provided, That of the funds made 
     available under this heading, $39,100,000 shall be available 
     only to support a restructured CH-47F helicopter upgrade 
     program for the full fleet to facilitate increases in the 
     planned production rate to an economically optimal rate by 
     fiscal year 2005: Provided further, That funds in the 
     immediately preceding proviso shall not be made available 
     until the Secretary of the Army has certified to the 
     congressional defense committees that the Army intends to 
     budget for the upgrade of the entire CH-47 fleet required for 
     the Objective Force at economically optimal production rates 
     in order to complete this program within ten years after it 
     is initiated.

                       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, 
     $1,096,548,000, to remain available for obligation until 
     September 30, 2005.

        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, $2,266,508,000, to remain available for 
     obligation until September 30, 2005.

                    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, 
     $1,253,099,000, to remain available for obligation until 
     September 30, 2005.

                        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 6 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, 
     $5,874,674,000, to remain available for obligation until 
     September 30, 2005.

                       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, $8,812,855,000, to remain available 
     for obligation until September 30, 2005.

                       Weapons Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of missiles, torpedoes, other weapons, and 
     related support equipment including spare parts, and 
     accessories therefor; expansion of public and private plants, 
     including the land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and contractor-owned equipment layaway, 
     $1,868,517,000, to remain available for obligation until 
     September 30, 2005.

            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, 
     $1,165,730,000, to remain available for obligation until 
     September 30, 2005.

                   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, $90,000,000;
       Carrier Replacement Program (AP), $403,703,000;
       NSSN, $1,499,152,000;
       NSSN (AP), $645,209,000;
       SSGN, $404,305,000;
       SSGN (AP), $421,000,000;
       CVN Refuelings (AP), $221,781,000;
       Submarine Refuelings, $435,792,000;
       Submarine Refuelings (AP), $64,000,000;
       DDG-51 Destroyer, $2,321,502,000;
       LPD-17, $596,492,000;
       LHD-8, $243,000,000;
       LCAC Landing Craft Air Cushion, $89,638,000;
       Mine Hunter SWATH, $7,000,000;
       Prior year shipbuilding costs, $1,279,899,000;
       Service Craft, $9,756,000; and
       For outfitting, post delivery, conversions, and first 
     destination transportation, $300,608,000;
       In all: $9,032,837,000, to remain available for obligation 
     until September 30, 2007: Provided, That additional 
     obligations may be incurred after September 30, 2007, 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 3 
     vehicles required for physical security of personnel, 
     notwithstanding price limitations applicable to passenger 
     vehicles but not to exceed $240,000 per unit for one unit and 
     not to exceed $125,000 per unit for the remaining two units; 
     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, $4,612,910,000, to remain available 
     for obligation until September 30, 2005.

                       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

[[Page 19908]]

     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, 
     $1,388,583,000, to remain available for obligation until 
     September 30, 2005.

                    Aircraft Procurement, Air Force

       For construction, procurement, lease, 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, $13,137,255,000, to remain 
     available for obligation until September 30, 2005: Provided, 
     That amounts provided under this heading shall be used for 
     the advance procurement of 15 C-17 aircraft.

                     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, 
     $3,174,739,000, to remain available for obligation until 
     September 30, 2005.

                  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, 
     $1,288,164,000, to remain available for obligation until 
     September 30, 2005.

                      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 2 vehicles required for physical 
     security of personnel, notwithstanding price limitations 
     applicable to passenger vehicles but not to exceed $232,000 
     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, $10,672,712,000, to remain available for obligation 
     until September 30, 2005.

                       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; the purchase of 4 vehicles required for 
     physical security of personnel, notwithstanding price 
     limitations applicable to passenger vehicles but not to 
     exceed $250,000 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, $3,444,455,000, to remain 
     available for obligation until September 30, 2005.

                  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, $100,000,000, 
     to remain available for obligation until September 30, 2005: 
     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), 
     $73,057,000, to remain available until expended, of which, 
     $5,000,000 may be used for a Processable Rigid-Rod Polymeric 
     Material Supplier Initiative under title III of the Defense 
     Production Act of 1950 (50 U.S.C. App. 2091 et seq.) to 
     develop affordable production methods and a domestic supplier 
     for military and commercial processable rigid-rod polymeric 
     materials.

                                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, $7,669,656,000, to remain available 
     for obligation until September 30, 2004.

            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, $13,946,085,000, to remain 
     available for obligation until September 30, 2004: 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.

         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, $18,822,569,000, to remain 
     available for obligation until September 30, 2004.

        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, $17,924,642,000, to 
     remain available for obligation until September 30, 2004.

                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, $245,554,000, to remain available for obligation 
     until September 30, 2004.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       For the Defense Working Capital Funds, $1,784,956,000: 
     Provided, That during fiscal year 2003, funds in the Defense 
     Working Capital Funds may be used for the purchase of not to 
     exceed 315 passenger carrying motor vehicles for replacement 
     only for the Defense Security Service, and the purchase of 
     not to exceed 7 vehicles for replacement only for the Defense 
     Logistics Agency.

                     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, $942,629,000, 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, $8,500,000 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.

[[Page 19909]]



                                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, $14,843,542,000, of which $14,100,386,000 
     shall be for Operation and maintenance, of which not to 
     exceed 2 percent shall remain available until September 30, 
     2004; of which $284,242,000, to remain available for 
     obligation until September 30, 2005, shall be for 
     Procurement; of which $458,914,000, to remain available for 
     obligation until September 30, 2004, shall be for Research, 
     development, test and evaluation, and of which not less than 
     $7,000,000 shall be available for HIV prevention educational 
     activities undertaken in connection with U.S. military 
     training, exercises, and humanitarian assistance activities 
     conducted primarily in African nations.

            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, $1,490,199,000, of which $974,238,000 shall 
     be for Operation and maintenance to remain available until 
     September 30, 2004, $213,278,000 shall be for Procurement to 
     remain available until September 30, 2005, and $302,683,000 
     shall be for Research, development, test and evaluation to 
     remain available until September 30, 2004.

         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, $881,907,000: 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, $157,165,000, of which 
     $155,165,000 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 $2,000,000 to 
     remain available until September 30, 2005, 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, 
     $222,500,000.

               Intelligence Community Management Account


                     (including transfer of funds)

       For necessary expenses of the Intelligence Community 
     Management Account, $163,479,000, of which $24,252,000 for 
     the Advanced Research and Development Committee shall remain 
     available until September 30, 2004: Provided, That of the 
     funds appropriated under this heading, $34,100,000 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, 2005 and $1,000,000 for 
     Research, development, test and evaluation shall remain 
     available until September 30, 2004: 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, 
     $75,000,000, 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 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 $2,000,000,000 of working 
     capital funds of the Department of Defense or funds made 
     available in this Act to the Department of Defense for 
     military functions (except military construction) between 
     such appropriations or funds or any subdivision thereof, to 
     be merged with and to be available for the same purposes, and 
     for the same time period, as the appropriation or fund to 
     which transferred: Provided, That such authority to transfer 
     may not be used unless for higher priority items, based on 
     unforeseen military requirements, than those for which 
     originally appropriated and in no case where the item for 
     which funds are requested has been denied by 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 May 
     31, 2003: Provided further, That section 8005 of the 
     Department of Defense Appropriations Act, 2002 (Public Law 
     107-117) is amended by striking ``$2,000,000,000'', and 
     inserting ``$2,500,000,000''.


                          (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

[[Page 19910]]

     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:
       C-130 aircraft;
       FMTV; and
       F/A-18E and F engine.
       Sec. 8009. Within the funds appropriated for the operation 
     and maintenance of the Armed Forces, funds are hereby 
     appropriated pursuant to section 401 of title 10, United 
     States Code, for humanitarian and civic assistance costs 
     under chapter 20 of title 10, United States Code. Such funds 
     may also be obligated for humanitarian and civic assistance 
     costs incidental to authorized operations and pursuant to 
     authority granted in section 401 of chapter 20 of title 10, 
     United States Code, and these obligations shall be reported 
     to the Congress as of September 30 of each year: Provided, 
     That funds available for operation and maintenance shall be 
     available for providing humanitarian and similar assistance 
     by using Civic Action Teams in the Trust Territories of the 
     Pacific Islands and freely associated states of Micronesia, 
     pursuant to the Compact of Free Association as authorized by 
     Public Law 99-239: Provided further, That upon a 
     determination by the Secretary of the Army that such action 
     is beneficial for graduate medical education programs 
     conducted at Army medical facilities located in Hawaii, the 
     Secretary of the Army may authorize the provision of medical 
     services at such facilities and transportation to such 
     facilities, on a nonreimbursable basis, for civilian patients 
     from American Samoa, the Commonwealth of the Northern Mariana 
     Islands, the Marshall Islands, the Federated States of 
     Micronesia, Palau, and Guam.
       Sec. 8010. (a) During fiscal year 2003, 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 2004 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2004 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 2004.
       (c) Nothing in this section shall be construed to apply to 
     military (civilian) technicians.
       Sec. 8011. Notwithstanding any other provision of law, none 
     of the funds made available by this Act shall be used by the 
     Department of Defense to exceed, outside the 50 United 
     States, its territories, and the District of Columbia, 
     125,000 civilian workyears: Provided, That workyears shall be 
     applied as defined in the Federal Personnel Manual: Provided 
     further, That workyears expended in dependent student hiring 
     programs for disadvantaged youths shall not be included in 
     this workyear limitation.
       Sec. 8012. None of the funds made available by this Act 
     shall be used in any way, directly or indirectly, to 
     influence congressional action on any legislation or 
     appropriation matters pending before the Congress.
       Sec. 8013. None of the funds appropriated by this Act shall 
     be available for the basic pay and allowances of any member 
     of the Army participating as a full-time student and 
     receiving benefits paid by the Secretary of Veterans Affairs 
     from the Department of Defense Education Benefits Fund when 
     time spent as a full-time student is credited toward 
     completion of a service commitment: Provided, That this 
     subsection shall not apply to those members who have 
     reenlisted with this option prior to October 1, 1987: 
     Provided further, That this subsection applies only to active 
     components of the Army.
       Sec. 8014. None of the funds appropriated by this Act shall 
     be available to convert to contractor performance an activity 
     or function of the Department of Defense that, on or after 
     the date of the enactment of this Act, is performed by more 
     than 10 Department of Defense civilian employees until a most 
     efficient and cost-effective organization analysis is 
     completed on such activity or function and certification of 
     the analysis is made to the Committees on Appropriations of 
     the House of Representatives and the Senate: Provided, That 
     this section and subsections (a), (b), and (c) of 10 U.S.C. 
     2461 shall not apply to a commercial or industrial type 
     function of the Department of Defense that: (1) is included 
     on the procurement list established pursuant to section 2 of 
     the Act of June 25, 1938 (41 U.S.C. 47), popularly referred 
     to as the Javits-Wagner-O'Day Act; (2) is planned to be 
     converted to performance by a qualified nonprofit agency for 
     the blind or by a qualified nonprofit agency for other 
     severely handicapped individuals in accordance with that Act; 
     or (3) is planned to be converted to performance by a 
     qualified firm under 51 percent ownership by an Indian tribe, 
     as defined in section 450b(e) of title 25, United States 
     Code, or a Native Hawaiian organization, as defined in 
     section 637(a)(15) of title 15, United States Code.


                          (transfer of funds)

       Sec. 8015. Funds appropriated in title III of this Act for 
     the Department of Defense Pilot Mentor-Protege Program may be 
     transferred to any other appropriation contained in this Act 
     solely for the purpose of implementing a Mentor-Protege 
     Program developmental assistance agreement pursuant to 
     section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 note), 
     as amended, under the authority of this provision or any 
     other transfer authority contained in this Act.
       Sec. 8016. None of the funds in this Act may be available 
     for the purchase by the Department of Defense (and its 
     departments and agencies) of welded shipboard anchor and 
     mooring chain 4 inches in diameter and under unless the 
     anchor and mooring chain are manufactured in the United 
     States from components which are substantially manufactured 
     in the United States: Provided, That for the purpose of this 
     section manufactured will include cutting, heat treating, 
     quality control, testing of chain and welding (including the 
     forging and shot blasting process): Provided further, That 
     for the purpose of this section substantially all of the 
     components of anchor and mooring chain shall be considered to 
     be produced or manufactured in the United States if the 
     aggregate cost of the components produced or manufactured in 
     the United States exceeds the aggregate cost of the 
     components produced or manufactured outside the United 
     States: Provided further, That when adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis, the Secretary of the service 
     responsible for the procurement may waive this restriction on 
     a case-by-case basis by certifying in writing to the 
     Committees on Appropriations that such an acquisition must be 
     made in order to acquire capability for national security 
     purposes.
       Sec. 8017. None of the funds appropriated by this Act 
     available for the Civilian Health and Medical Program of the 
     Uniformed Services (CHAMPUS) 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 2004 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

[[Page 19911]]

     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 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. Sec. 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. Sec. 1544 or a 
     small business owned and controlled by an individual defined 
     under 25 U.S.C. 4221(9).
       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 48 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, qualified nonprofit 
     agencies for the blind or other severely handicapped shall be 
     afforded the maximum practicable opportunity to participate 
     as subcontractors and suppliers in the performance of 
     contracts let by the Department of Defense.
       (b) During the current fiscal year, a business concern 
     which has negotiated with a military service or defense 
     agency a subcontracting plan for the participation by small 
     business concerns pursuant to section 8(d) of the Small 
     Business Act (15 U.S.C. 637(d)) shall be given credit toward 
     meeting that subcontracting goal for any purchases made from 
     qualified nonprofit agencies for the blind or other severely 
     handicapped.
       (c) For the purpose of this section, the phrase ``qualified 
     nonprofit agency for the blind or other severely 
     handicapped'' means a nonprofit agency for the blind or other 
     severely handicapped that has been approved by the Committee 
     for the Purchase from the Blind and Other Severely 
     Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
     48).
       Sec. 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.
       Sec. 8028. Of the funds made available in this Act, not 
     less than $21,188,000 shall be available for the Civil Air 
     Patrol Corporation, of which $19,688,000 shall be available 
     for Civil Air Patrol Corporation operation and maintenance to 
     support readiness activities which includes $1,500,000 for 
     the Civil Air Patrol counterdrug program: Provided, That 
     funds identified for ``Civil Air Patrol'' under this section 
     are intended for and shall be for the exclusive use of the 
     Civil Air Patrol Corporation and not for the Air Force or any 
     unit thereof.
       Sec. 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.
       (c) Notwithstanding any other provision of law, none of the 
     funds available to the department from any source during 
     fiscal year 2003 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 2003, 
     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 2004 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 2003. 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. 485(h)(2) 
     and to the special account established under 10 U.S.C.

[[Page 19912]]

     2667(d)(1) are appropriated and shall be available until 
     transferred by the Secretary of Defense to current applicable 
     appropriations or funds of the Department of Defense under 
     the terms and conditions specified by 40 U.S.C. 485(h)(2)(A) 
     and (B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to 
     be available for the same time period and the same purposes 
     as the appropriation to which transferred.
       Sec. 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 
     $100,000.
       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 2004 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2004 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 2004 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, 2004: 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 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, 2004.
       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.
       Sec. 8045. Of the funds made available in this Act, not 
     less than $68,900,000 shall be available to maintain an 
     attrition reserve force of 18 B-52 aircraft, of which 
     $3,700,000 shall be available from ``Military Personnel, Air 
     Force'', $40,000,000 shall be available from ``Operation and 
     Maintenance, Air Force'', and $25,200,000 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 2003: Provided further, That the Secretary 
     of Defense shall include in the Air Force budget request for 
     fiscal year 2004 amounts sufficient to maintain a B-52 force 
     totaling 94 aircraft.
       Sec. 8046. (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. 8047. 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. 8048. (a) Except as provided in subsections (b) and 
     (c), none of the funds made available by this Act may be 
     used--
       (1) to establish a field operating agency; or
       (2) to pay the basic pay of a member of the Armed Forces or 
     civilian employee of the department who is transferred or 
     reassigned from a headquarters activity if the member or 
     employee's place of duty remains at the location of that 
     headquarters.
       (b) The Secretary of Defense or Secretary of a military 
     department may waive the limitations in subsection (a), on a 
     case-by-case basis, if the Secretary determines, and 
     certifies to the Committees on Appropriations of the House of 
     Representatives and Senate that the granting of the waiver 
     will reduce the personnel requirements or the financial 
     requirements of the department.
       (c) This section does not apply to field operating agencies 
     funded within the National Foreign Intelligence Program.
       Sec. 8049. 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. 8050. 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:
       ``Procurement of Weapons and Tracked Combat Vehicles, Army, 
     2001/2003'', $9,500,000;
       ``Procurement of Ammunition, Army, 2001/2003'', $4,000,000;
       ``Other Procurement, Army, 2001/2003'', $8,000,000;
       ``Other Procurement, Navy, 2001/2003'', $5,000,000;

[[Page 19913]]

       ``Missile Procurement, Air Force, 2001/2003'', $93,600,000;
       ``Missile Procurement, Army, 2002/2004'', $37,650,000;
       ``Procurement of Ammunition, Army, 2002/2004'', 
     $19,000,000;
       ``Other Procurement, Army, 2002/2004'', $21,200,000;
       ``Missile Procurement, Air Force, 2002/2004'', 
     $114,600,000;
       ``Research, Development, Test and Evaluation, Navy, 2002/
     2003'', $1,700,000;
       ``Research, Development, Test and Evaluation, Air Force, 
     2002/2003'', $69,000,000; and
       ``Research, Development, Test and Evaluation, Defense-Wide, 
     2002/2003'', $19,500,000.
       Sec. 8051. 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. 8052. 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. 8053. 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. 8054. 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. 8055. 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. 8056. (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. 8057. 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. 8058. (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. 8059. 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. 8060. None of the funds appropriated by this Act may 
     be used for the procurement of ball and roller bearings other 
     than those produced by a domestic source and of domestic 
     origin: Provided, That the Secretary of the military 
     department responsible for such procurement may waive this 
     restriction on a case-by-case basis by certifying in writing 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate, that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes: 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. 8061. 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. 8062. 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. 8063. Notwithstanding any other provision of law, the 
     Naval shipyards of the United States shall be eligible to 
     participate in any manufacturing extension program financed 
     by funds appropriated in this or any other Act.
       Sec. 8064. 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. 8065. (a) 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.
       (b) None of the funds in this or any other Act may be used 
     to dismantle national memorials commemorating United States 
     participation in World War I.
       Sec. 8066. (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)

[[Page 19914]]

     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. 8067. 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. 8068. 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. 8069. (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. 8070. 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. 8071. 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. 8072. 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 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. 8073. During the current fiscal year and hereafter, 
     the Secretary of Defense may waive reimbursement of the cost 
     of conferences, seminars, courses of instruction, or similar 
     educational activities of the Asia-Pacific Center for 
     Security Studies for military officers and civilian officials 
     of foreign nations if the Secretary determines that 
     attendance by such personnel, without reimbursement, is in 
     the national security interest of the United States: 
     Provided, That costs for which reimbursement is waived 
     pursuant to this section shall be paid from appropriations 
     available for the Asia-Pacific Center.
       Sec. 8074. (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. 8075. Using funds available by this Act or any other 
     Act, the Secretary of the Air Force, pursuant to a 
     determination under section 2690 of title 10, United States 
     Code, may implement cost-effective agreements for required 
     heating facility modernization in the Kaiserslautern Military 
     Community in the Federal Republic of Germany: Provided, That 
     in the City of Kaiserslautern such agreements will include 
     the use of United States anthracite as the base load energy 
     for municipal district heat to the United States Defense 
     installations: Provided further, That at Landstuhl Army 
     Regional Medical Center and Ramstein Air Base, furnished heat 
     may be obtained from private, regional or municipal services, 
     if provisions are included for the consideration of United 
     States coal as an energy source.
       Sec. 8076. 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. 8077. 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. 8078. (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. 8079. Funds made available to the Civil Air Patrol in 
     this Act under the heading ``Drug Interdiction and Counter-
     Drug Activities, Defense'' may be used for the Civil Air 
     Patrol Corporation's counterdrug program, including its 
     demand reduction program involving youth programs, as well as 
     operational and training drug

[[Page 19915]]

     reconnaissance missions for Federal, State, and local 
     government agencies; and for equipment needed for mission 
     support or performance: Provided, That the Department of the 
     Air Force should waive reimbursement from the Federal, State, 
     and local government agencies for the use of these funds.
       Sec. 8080. (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. 8081. 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. 8082. The total amount appropriated in this Act is 
     hereby reduced by $338,000,000 to reflect savings from 
     favorable foreign currency fluctuations, to be derived as 
     follows:
       ``Military Personnel, Army'', $80,000,000;
       ``Military Personnel, Navy'', $6,500,000;
       ``Military Personnel, Marine Corps'', $11,000,000;
       ``Military Personnel, Air Force'', $29,000,000;
       ``Operation and Maintenance, Army'', $102,000,000;
       ``Operation and Maintenance, Navy'', $21,500,000;
       ``Operation and Maintenance, Marine Corps'', $2,000,000;
       ``Operation and Maintenance, Air Force'', $46,000,000; and
       ``Operation and Maintenance, Defense-Wide'', $40,000,000.
       Sec. 8083. 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. 8084. 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. 8085. 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 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. 8086. Notwithstanding any other provision of law, for 
     the purpose of establishing all Department of Defense 
     policies governing the provision of care provided by and 
     financed under the military health care system's case 
     management program under 10 U.S.C. 1079(a)(17), the term 
     ``custodial care'' shall be defined as care designed 
     essentially to assist an individual in meeting the activities 
     of daily living and which does not require the supervision of 
     trained medical, nursing, paramedical or other specially 
     trained individuals: Provided, That the case management 
     program shall provide that members and retired members of the 
     military services, and their dependents and survivors, have 
     access to all medically necessary health care through the 
     health care delivery system of the military services 
     regardless of the health care status of the person seeking 
     the health care: Provided further, That the case management 
     program shall be the primary obligor for payment of medically 
     necessary services and shall not be considered as secondarily 
     liable to title XIX of the Social Security Act, other welfare 
     programs or charity based care.
       Sec. 8087. 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. 8088. (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 
     major automated information system 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).
       (3) The term ``major automated information system'' has the 
     meaning given that term in Department of Defense Directive 
     5000.1.
       Sec. 8089. 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. 8090. 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 ``armor-piercing 
     incendiary-tracer (API-T)'', except to an entity performing 
     demilitarization

[[Page 19916]]

     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. 8091. 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. 8092. 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. 8093. During the current fiscal year and hereafter, 
     under regulations prescribed by the Secretary of Defense, the 
     Center of Excellence for Disaster Management and Humanitarian 
     Assistance may also pay, or authorize payment for, the 
     expenses of providing or facilitating education and training 
     for appropriate military and civilian personnel of foreign 
     countries in disaster management, peace operations, and 
     humanitarian assistance.
       Sec. 8094. (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.


                     (including transfer of funds)

       Sec. 8095. Of the amounts appropriated in this Act under 
     the heading ``Research, Development, Test and Evaluation, 
     Defense-Wide'', $136,000,000 shall be made available for the 
     Arrow missile defense program: Provided, That of this amount, 
     $66,000,000 shall be available for the purpose of continuing 
     the Arrow System Improvement Program (ASIP), and $70,000,000 
     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.
       Sec. 8096. 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. 8097. Of the amounts appropriated in this Act under 
     the heading, ``Operation and Maintenance, Defense-Wide'', 
     $68,000,000 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.
       Sec. 8098. 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 2003.
       Sec. 8099. In addition to amounts provided in this Act, 
     $1,700,000 is hereby appropriated for ``Defense Health 
     Program'', to remain available for obligation until expended: 
     Provided, That notwithstanding any other provision of law, 
     these funds 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.
       Sec. 8100. Notwithstanding any other provision of this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $850,000,000, to reflect savings to be achieved from 
     business process reforms, management efficiencies, and 
     procurement of administrative and management support, to be 
     distributed as follows:
       ``Operation and Maintenance, Army'', $26,000,000;
       ``Operation and Maintenance, Navy'', $60,300,000;
       ``Operation and Maintenance, Marine Corps'', $8,400,000;
       ``Operation and Maintenance, Air Force'', $91,200,000;
       ``Operation and Maintenance, Defense-Wide'', $199,000,000;
       ``Operation and Maintenance, Army Reserve'', $5,900,000;
       ``Operation and Maintenance, Marine Corps Reserve'', 
     $900,000;
       ``Operation and Maintenance, Air Force Reserve'', 
     $1,000,000;
       ``Operation and Maintenance, Army National Guard'', 
     $4,300,000;
       ``Operation and Maintenance, Air National Guard'', 
     $2,600,000;
       ``Aircraft Procurement, Army'', $3,700,000;
       ``Missile Procurement, Army'', $1,100,000;
       ``Procurement of Weapons and Tracked Combat Vehicles, 
     Army'', $3,100,000;
       ``Other Procurement, Army'', $17,700,000;
       ``Aircraft Procurement, Navy'', $22,800,000;
       ``Weapons Procurement, Navy'', $4,800,000;
       ``Procurement of Ammunition, Navy and Marine Corps'', 
     $1,000,000;
       ``Shipbuilding and Conversion, Navy'', $15,700,000;
       ``Other Procurement, Navy'', $7,200,000;
       ``Procurement, Marine Corps'', $2,600,000;
       ``Aircraft Procurement, Air Force'', $9,700,000;
       ``Missile Procurement, Air Force'', $6,200,000;
       ``Other Procurement, Air Force'', $6,200,000;
       ``Procurement, Defense-Wide'', $1,200,000;
       ``Research, Development, Test and Evaluation, Army'', 
     $23,500,000;
       ``Research, Development, Test and Evaluation, Navy'', 
     $55,700,000;
       ``Research, Development, Test and Evaluation, Air Force'', 
     $66,200,000;
       ``Research, Development, Test and Evaluation, Defense-
     Wide'', $154,000,000;
       ``Operational Test and Evaluation, Defense'', $5,000,000;
       ``National Defense Sealift Fund'', $1,000,000;
       ``Defense Health Program'', $12,000,000;
       ``Chemical Agents and Munitions Destruction, Army'', 
     $20,000,000; and
       ``Drug Interdiction and Counter-Drug Activities, Defense'', 
     $10,000,000:

     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 appropriation account: Provided further, That 
     none of the funds provided in this Act may be used for 
     consulting and advisory services for legislative affairs and 
     legislative liaison functions.


                     (including transfer of funds)

       Sec. 8101. Of the amounts appropriated in this Act under 
     the heading ``Shipbuilding and Conversion, Navy'', 
     $1,279,899,000 shall be available until September 30, 2003, 
     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, 
     1996/03'':
       LPD-17 Amphibious Transport Dock Ship Program, 
     $300,681,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1998/03'':
       DDG-51 Destroyer Program, $76,100,000;
       New SSN, $190,882,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1999/03'':
       DDG-51 Destroyer Program, $93,736,000;
       LPD-17 Amphibious Transport Dock Ship Program, $82,000,000;
       New SSN, $135,800,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2000/03'':
       DDG-51 Destroyer Program, $51,724,000;
       LPD-17 Amphibious Transport Dock Ship Program, 
     $187,000,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2001/03'':
       DDG-51 Destroyer Program, $63,976,000; and
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2002/03'':
       DDG-51 Destroyer Program, $98,000,000.

[[Page 19917]]

       Sec. 8102. 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. 8103. The total amount appropriated in title II of 
     this Act is hereby reduced by $97,000,000, to reflect savings 
     attributable to improved supervision in determining 
     appropriate purchases to be made using the Government 
     purchase card, to be derived as follows:
       ``Operation and Maintenance, Army'', $24,000,000;
       ``Operation and Maintenance, Navy'', $29,000,000;
       ``Operation and Maintenance, Marine Corps'', $3,000,000;
       ``Operation and Maintenance, Air Force'', $27,000,000; and
       ``Operation and Maintenance, Defense-Wide'', $14,000,000.
       Sec. 8104. Funds provided for the current fiscal year or 
     hereafter for Operation and maintenance for the Armed Forces 
     may be used, notwithstanding any other provision of law, for 
     the purchase of ultralightweight camouflage net systems as 
     unit spares.


                     (including transfer of funds)

       Sec. 8105. During the current fiscal year and for fiscal 
     years 2004 and 2005, notwithstanding any other provision of 
     law, the Secretary of Defense may transfer not more than 
     $20,000,000 of unobligated balances remaining in a Research, 
     Development, Test and Evaluation, Army appropriation account 
     during the last fiscal year before the account closes under 
     section 1552 of title 31 United States Code, to a current 
     Research, Development, Test and Evaluation, Army 
     appropriation account to be used only for the continuation of 
     the Venture Capital Fund demonstration, as originally 
     approved in Section 8150 of Public Law 107-117, to pursue 
     high payoff technology and innovations in science and 
     technology: Provided, That any such transfer shall be made 
     not later than July 31 of each year: Provided further, That 
     funds so transferred shall be merged with and shall be 
     available for the same purposes and for the same time period 
     as the appropriation to which transferred: Provided further, 
     That the transfer authority provided in this section is in 
     addition to any other transfer authority available to the 
     Department of Defense: Provided further, That no funds for 
     programs, projects, or activities designated as special 
     congressional interest items in DD Form 1414 shall be 
     eligible for transfer under the authority of this section: 
     Provided further, That any unobligated balances transferred 
     under this authority may be restored to the original 
     appropriation if required to cover unexpected upward 
     adjustments: Provided further, That the Secretary of the Army 
     shall provide an annual report to the House and Senate 
     Appropriations Committees no later than 15 days prior to the 
     annual transfer of funds under authority of this section 
     describing the sources and amounts of funds proposed to be 
     transfered, summarizing the projects funded under this 
     demonstration program (including the name and location of 
     project sponsors) to date, a description of the major program 
     accomplishments to date, and an overall assessment of the 
     benefits of this demonstration program compared to the goals 
     expressed in the legislative history accompanying Section 
     8150 of Public Law 107-117.
       Sec. 8106. 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. 8107. 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 of 1947 (50 U.S.C. 414) during fiscal 
     year 2003 until the enactment of the Intelligence 
     Authorization Act for fiscal year 2003.
       Sec. 8108. In addition to funds made available elsewhere in 
     this Act $7,750,000 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: Provided further, That $2,750,000 shall 
     be available for a grant to the Central Kitsap School 
     District, Washington.
       Sec. 8109. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $400,000,000, to reduce cost growth in information 
     technology development, to be distributed as follows:
       ``Operation and Maintenance, Defense-Wide'', $19,500,000;
       ``Other Procurement, Army'', $53,200,000;
       ``Other Procurement, Navy'', $20,600,000;
       ``Procurement, Marine Corps'', $3,400,000;
       ``Other Procurement, Air Force'', $12,000,000;
       ``Procurement, Defense-Wide'', $3,500,000;
       ``Research, Development, Test and Evaluation, Army'', 
     $17,700,000;
       ``Research, Development, Test and Evaluation, Navy'', 
     $25,600,000;
       ``Research, Development, Test and Evaluation, Air Force'', 
     $27,200,000;
       ``Research, Development, Test and Evaluation, Defense-
     Wide'', $36,600,000;
       ``Defense Working Capital Funds'', $148,600,000; and
       ``Defense Health Program'', $32,100,000:
     Provided, That these reductions shall be applied 
     proportionally to each budget activity, activity group and 
     subactivity group and each program, project, and activity 
     within each appropriation account.
       Sec. 8110. Notwithstanding section 1116(c) of title 10, 
     United States Code, payments into the Department of Defense 
     Medicare-Eligible Retiree Health Care Fund for fiscal year 
     2003 under section 1116(a) of such title shall be made from 
     funds available in this Act for the pay of military 
     personnel.
       Sec. 8111. 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. 8112. The amount appropriated in title II of this Act 
     is hereby reduced by $120,000,000, to reflect Working Capital 
     Fund cash balance and rate stabilization adjustments, to be 
     derived as follows:
       ``Operation and Maintenance, Navy'', $120,000,000.
       Sec. 8113. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $48,000,000, to reduce excess funded carryover, to be 
     derived as follows:
       ``Operation and Maintenance, Army'', $48,000,000.
       Sec. 8114. Of the amounts appropriated in title II of the 
     Act, not less than $1,000,000,000 is available for operations 
     of the Department of Defense to prosecute the war on 
     terrorism.
       Sec. 8115. (a) In addition to the amounts provided 
     elsewhere in this Act, the amount of $3,400,000 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 $3,400,000 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. 8116. (a) During the current fiscal year, funds 
     available to the Secretary of a military department for 
     Operation and Maintenance may be used for the purposes stated 
     in subsection (b) to support chaplain-led programs to assist 
     members of the Armed Forces and their immediate family 
     members in building and maintaining a strong family 
     structure.
       (b) The purposes referred to in subsection (a) are costs of 
     transportation, food, lodging, supplies, fees, and training 
     materials for members of the Armed Forces and their family 
     members while participating in such programs, including 
     participation at retreats and conferences.
       Sec. 8117. Section 8159 of the Department of Defense 
     Appropriations Act, 2002 (division A of Public Law 107-117; 
     115 Stat. 2284), is revised as follows:
       (1) in subsection (c) by inserting at the end of paragraph 
     (1) the following new sentence: ``Notwithstanding the 
     provisions of Section 3324 of Title 31, United States Code, 
     payment for the acquisition of leasehold interests under this 
     section may be made for each annual term up to one year in 
     advance.''
       (2) by adding the following paragraph (g):
       ``(g) Notwithstanding any other provision of law, any 
     payments required for a lease entered into under this 
     Section, or any payments made pursuant to subsection (c)(3) 
     above, may be made from appropriations available for 
     operation and maintenance or for lease or procurement of 
     aircraft at the time that the lease takes effect; 
     appropriations available for operation and maintenance or for 
     lease or procurement of aircraft at the time that the payment 
     is due; or funds appropriated for those payments.''.

[[Page 19918]]

       Sec. 8118. (a) Limitation on Additional NMCI Contract Work 
     Stations.--Notwithstanding section 814 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-215) 
     or any other provision of law, the total number of work 
     stations provided under the Navy-Marine Corps Intranet 
     contract (as defined in subsection (i) of such section 814) 
     may not exceed 160,000 work stations until the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics and the Chief Information Officer of the Department 
     of Defense certify to the congressional defense committees 
     that all of the conditions specified in subsection (b) have 
     been satisfied.
       (b) Conditions.--The conditions referred to in subsection 
     (a) are the following:
       (1) The Commander of the Navy Operational Test and 
     Evaluation Force conducts an operational assessment of the 
     work stations that have been fully transitioned to the Navy-
     Marine Corps Intranet, as defined in the Test and Evaluation 
     Strategy Plan for the Navy-Marine Corps Intranet approved on 
     September 4, 2002.
       (2) The results of the assessment are submitted to the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics and the Chief Information Officer of the Department 
     of Defense, and they determine that the results of the 
     assessment are acceptable.
       Sec. 8119. None of the funds in this Act, excluding funds 
     provided for advance procurement of fiscal year 2004 
     aircraft, may be obligated for acquisition of more than 16 F-
     22 aircraft until the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics has provided to the 
     congressional defense committees:
       (a) A formal risk assessment which identifies and 
     characterizes the potential cost, technical, schedule or 
     other significant risks resulting from increasing the F-22 
     procurement quantities prior to the conclusion of Dedicated 
     Initial Operational Test and Evaluation (DIOT&E) of the 
     aircraft: Provided, That such risk assessment shall evaluate, 
     based on the best available current information: (1) the 
     range of potential additional program costs (compared to the 
     program costs assumed in the President's fiscal year 2003 
     budget) that could result from retrofit modifications to F-22 
     production aircraft that are placed under contract or 
     delivered to the government prior to the conclusion of 
     DIOT&E and (2) a cost-benefit analysis comparing, in terms 
     of unit cost and total program cost, the cost advantages of 
     increasing aircraft production at this time to the potential 
     cost of retrofitting production aircraft once DIOT&E has been 
     completed; and
       (b) Certification that increasing the F-22 production 
     quantity for fiscal year 2003 beyond 16 airplanes involves 
     lower risk and lower total program cost than staying at that 
     quantity, or he submits a revised production plan, funding 
     plan and test schedule.


                     (including transfer of funds)

       Sec. 8120. Section 305(a) of the Emergency Supplemental 
     Act, 2002 (division B of Public Law 107-117; 115 Stat. 2300), 
     is amended by adding at the end the following new sentences: 
     ``From amounts transferred to the Pentagon Reservation 
     Maintenance Revolving Fund pursuant to the preceding 
     sentence, not to exceed $305,000,000 may be transferred to 
     the Defense Emergency Response Fund, but only in amounts 
     necessary to reimburse that fund (and the category of that 
     fund designated as `Pentagon Repair/Upgrade') for expenses 
     charged to that fund (and that category) between September 
     11, 2001, and February 19, 2002, for reconstruction costs of 
     the Pentagon Reservation. Funds transferred to the Defense 
     Emergency Response Fund pursuant to this section shall be 
     available only for reconstruction, recovery, force 
     protection, or security enhancements for the Pentagon 
     Reservation.''.
       Sec. 8121. 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. 8122. (a) Management of Chemical Demilitarization 
     Activities at Bluegrass Army Depot, Kentucky.--If a 
     technology other than the baseline incineration program is 
     selected for the destruction of lethal chemical munitions 
     pursuant to section 142 of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 (Public Law 
     105-261; 50 U.S.C. 1521 note), the program manager for the 
     Assembled Chemical Weapons Assessment shall be responsible 
     for management of the construction, operation, and closure, 
     and any contracting relating thereto, of chemical 
     demilitarization activities at Bluegrass Army Depot, 
     Kentucky, including management of the pilot-scale facility 
     phase of the alternative technology.
       (b) Management of Chemical Demilitarization Activities at 
     Pueblo Depot, Colorado.--The program manager for the 
     Assembled Chemical Weapons Assessment shall be responsible 
     for management of the construction, operation, and closure, 
     and any contracting relating thereto, of chemical 
     demilitarization activities at Pueblo Army Depot, Colorado, 
     including management of the pilot-scale facility phase of the 
     alternative technology selected for the destruction of lethal 
     chemical munitions.
       Sec. 8123. Of the total amount appropriated pursuant to 
     this Act for any selected component of the Department of 
     Defense that the Director of the Office of Management and 
     Budget determines shall require audited financial statements 
     under subsection (c) of section 3515 of title 31, United 
     States Code, not more than 99 percent may be expended until 
     the Inspector General of the Department of Defense certifies 
     to the Congress of the United States that the head of the 
     affected agency has made a formal decision as to whether to 
     audit vouchers of the agency pursuant to section 3521(b) of 
     title 31, United States Code: Provided, That such 
     certification shall include a written assessment of the 
     agency head's decision by the Inspector General.
       Sec. 8124. 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.


                          (transfer of funds)

       Sec. 8125. Upon enactment of this Act, the Secretary of the 
     Navy shall make the following transfers of funds: Provided, 
     That the amounts transferred shall be available for the same 
     purpose as the appropriations to which transferred, and for 
     the same time period as the appropriation from which 
     transferred: Provided further, That the amounts shall be 
     transferred between the following appropriations in the 
     amount specified:
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1994/2003'':
       DDG-51 Destroyer program, $7,900,000;
       LHD-1 Amphibious Assault Ship program, $6,500,000;
       Oceanographic Ship program, $3,416,000;
       Craft, outfitting, post delivery, first destination 
     transportation, $1,800,000;
       Mine warfare command and control ship, $604,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1999/2003'':
       LPD-17 Amphibious Transport Dock Ship program, $20,220,000.
       Sec. 8126. 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. 8127. 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 
     critical to base operations.
       Sec. 8128. Of the total amount appropriated by this Act 
     under the heading ``Operation and Maintenance, Defense-
     Wide'', $3,000,000 may be available for payments under 
     section 363 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-77).
       Sec. 8129. In addition to the amounts appropriated or 
     otherwise made available in this Act, $8,100,000, to remain 
     available until September 30, 2003, is hereby appropriated to 
     the Department of Defense: Provided, That the Secretary of 
     Defense shall make grants in the amount of $2,800,000 to the 
     American Red Cross for Armed Forces Emergency Services; 
     $2,800,000 to the United Service Organizations, Incorporated; 
     and $2,500,000 to the Intrepid Sea-Air-Space Foundation.
       Sec. 8130. None of the funds appropriated in this Act under 
     the heading ``Overseas Contingency Operations Transfer Fund'' 
     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 
     Fund'': 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. 8131. For purposes of section 1553(b) of title 31, 
     United States Code, any subdivision of appropriations made in 
     this Act under the heading ``Shipbuilding and Conversion, 
     Navy'' shall be considered to be for the same purpose as any 
     subdivision under the heading ``Shipbuilding and Conversion, 
     Navy'' appropriations in any prior year, and the 1 percent 
     limitation shall apply to the total amount of the 
     appropriation.
       Sec. 8132. The budget of the President for fiscal year 2004 
     submitted to the Congress pursuant to section 1105 of title 
     31, United States Code, and each annual budget request 
     thereafter, shall include separate budget justification 
     documents for costs of United States Armed Forces' 
     participation in contingency operations for the Military 
     Personnel accounts, the Overseas Contingency Operations 
     Transfer Fund, the Operation and Maintenance accounts, and 
     the Procurement accounts: Provided, That these budget 
     justification documents shall include a description of the 
     funding requested for each anticipated contingency operation, 
     for each military service, to include active duty and Guard 
     and Reserve components, and for each appropriation account: 
     Provided further, That

[[Page 19919]]

     these documents shall include estimated costs for each 
     element of expense or object class, a reconciliation of 
     increases and decreases for ongoing contingency operations, 
     and programmatic data including, but not limited to troop 
     strength for each active duty and Guard 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 the Overseas Contingency 
     Operations Transfer Fund for fiscal years 2002 and 2003.
       Sec. 8133. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $59,260,000, to reduce cost growth in travel, to be 
     distributed as follows:
       ``Operation and Maintenance, Army'', $14,000,000;
       ``Operation and Maintenance, Navy'', $9,000,000;
       ``Operation and Maintenance, Marine Corps'', $10,000,000;
       ``Operation and Maintenance, Air Force'', $15,000,000; and
       ``Operation and Maintenance, Defense-Wide'', $11,260,000.
       Sec. 8134. 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.


                        (INCLUDING RESCISSIONS)

       Sec. 8135. (a) The total amount appropriated or otherwise 
     made available in titles II, III, and IV of this Act is 
     hereby reduced by $1,374,000,000 to reflect revised economic 
     assumptions: Provided, That 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 further, That appropriations 
     made available in this Act for the pay and benefits of 
     military personnel are exempt from reductions under this 
     provision.
       (b) Of the funds provided in the Department of Defense 
     Appropriations Act, 2002, (division A of Public Law 107-117), 
     $300,000,000 are rescinded from amounts made available under 
     titles III and IV of that Act: Provided, That the Secretary 
     of Defense shall allocate this rescission proportionately by 
     program, project, and activity.
       Sec. 8136. 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. 8137. None of the funds appropriated by this Act may 
     be used to convert the 939th Combat Search and Rescue Wing of 
     the Air Force Reserve until the Secretary of the Air Force 
     certifies to the Congress the following: (a) that a 
     functionally comparable search and rescue capability is 
     available in the 939th Search and Rescue Wing's area of 
     responsibility; (b) that any new aircraft assigned to the 
     unit will comply with local environmental and noise 
     standards; and (c) that the Air Force has developed a plan 
     for the transition of personnel and manpower billets 
     currently assigned to this unit.
       Sec. 8138. Navy Dry-Dock AFDL-47 (a) Requirement for 
     Sale.--Notwithstanding any other provision of law, the 
     Secretary of the Navy shall sell the Navy Dry-dock AFDL-47, 
     located in Charleston, South Carolina, to Detyens Shipyards, 
     Inc., the current lessee of the dry-dock from the Navy.
       (b) Consideration.--As consideration for the sale of the 
     dry-dock under subsection (a), the Secretary shall receive an 
     amount equal to the fair market value of the dry-dock at the 
     time of the sale, as determined by the Secretary, taking into 
     account amounts paid by, or due and owing from, the lessee.
       Sec. 8139. From funds made available in this Act for the 
     Office of Economic Adjustment under the heading ``Operation 
     and Maintenance, Defense-Wide'', $100,000 shall be available 
     for the elimination of asbestos at former Battery 204, 
     Odiorne Point, New Hampshire.
       Sec. 8140. The Secretary of Defense may, using amounts 
     appropriated or otherwise made available by this Act, make a 
     grant to the National D-Day Museum in the amount of 
     $3,000,000.
       Sec. 8141. (a) Preliminary Study and Analysis Required.--
     The Secretary of the Army shall carry out a preliminary 
     engineering study and environmental analysis regarding the 
     establishment of a connector road between United States Route 
     1 and Telegraph Road in the vicinity of Fort Belvoir, 
     Virginia.
       (b) Funding.--Of the amount appropriated by title II under 
     the heading ``Operation and Maintenance, Army'', up to 
     $5,000,000 may be available for the preliminary study and 
     analysis required by subsection (a).
       Sec. 8142. Of the amount appropriated by title V under the 
     heading ``National Defense Sealift Fund'', up to $10,000,000 
     may be available for implementing the recommendations 
     resulting from the Navy's Non-Self Deployable Watercraft 
     (NDSW) Study and the Joint Chiefs of Staff Focused Logistics 
     Study, which are to determine the requirements of the Navy 
     for providing lift support for mine warfare ships and other 
     vessels.
       Sec. 8143. (a) Congress finds that--
       (1) the Medal of Honor is the highest award for valor in 
     action against an enemy force which can be bestowed upon an 
     individual serving in the Armed Forces of the United States;
       (2) the Medal of Honor was established by Congress during 
     the Civil War to recognize soldiers who had distinguished 
     themselves by gallantry in action;
       (3) the Medal of Honor was conceived by Senator James 
     Grimes of the State of Iowa in 1861; and
       (4) the Medal of Honor is the Nation's highest military 
     honor, awarded for acts of personal bravery or self-sacrifice 
     above and beyond the call of duty.
       (b)(1) Chapter 9 of title 36, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 903. Designation of Medal of Honor Flag

       ``(a) Designation.--The Secretary of Defense shall design 
     and designate a flag as the Medal of Honor Flag. In selecting 
     the design for the flag, the Secretary shall consider designs 
     submitted by the general public.
       ``(b) Presentation.--The Medal of Honor Flag shall be 
     presented as specified in sections 3755, 6257, and 8755 of 
     title 10 and section 505 of title 14.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``903. Designation of Medal of Honor Flag.''.

       (c)(1)(A) Chapter 357 of title 10, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 3755. Medal of honor: presentation of Medal of Honor 
       Flag

       ``The President shall provide for the presentation of the 
     Medal of Honor Flag designated under section 903 of title 36 
     to each person to whom a medal of honor is awarded under 
     section 3741 of this title after the date of the enactment of 
     this section. Presentation of the flag shall be made at the 
     same time as the presentation of the medal under section 3741 
     or 3752(a) of this title.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``3755. Medal of honor: presentation of Medal of Honor Flag.''.

       (2)(A) Chapter 567 of such title is amended by adding at 
     the end the following new section:

     ``Sec. 6257. Medal of honor: presentation of Medal of Honor 
       Flag

       ``The President shall provide for the presentation of the 
     Medal of Honor Flag designated under section 903 of title 36 
     to each person to whom a medal of honor is awarded under 
     section 6241 of this title after the date of the enactment of 
     this section. Presentation of the flag shall be made at the 
     same time as the presentation of the medal under section 6241 
     or 6250 of this title.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``6257. Medal of honor: presentation of Medal of Honor Flag.''.

       (3)(A) Chapter 857 of title 10, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 8755. Medal of honor: presentation of Medal of Honor 
       Flag

       ``The President shall provide for the presentation of the 
     Medal of Honor Flag designated under section 903 of title 36 
     to each person to whom a medal of honor is awarded under 
     section 8741 of this title after the date of the enactment of 
     this section. Presentation of the flag shall be made at the 
     same time as the presentation of the medal under section 8741 
     or 8752(a) of this title.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``8755. Medal of honor: presentation of Medal of Honor Flag.''.

       (4)(A) Chapter 13 of title 14, United States Code, is 
     amended by inserting after section 504 the following new 
     section:

     ``Sec. 505. Medal of honor: presentation of Medal of Honor 
       Flag

       ``The President shall provide for the presentation of the 
     Medal of Honor Flag designated under section 903 of title 36 
     to each person to whom a medal of honor is awarded under 
     section 491 of this title after the date of the enactment of 
     this section. Presentation of the flag shall be made at the 
     same time as the presentation of the medal under section 491 
     or 498 of this title.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     504 the following new item:

``505. Medal of honor: presentation of Medal of Honor Flag.''.

       (d) The President shall provide for the presentation of the 
     Medal of Honor Flag designated under section 903 of title 36, 
     United States Code, as added by subsection (b), to each 
     person awarded the Medal of Honor before the date of 
     enactment of this Act who is living as of that date. Such 
     presentation shall be made as expeditiously as possible after 
     the date of the designation of the Medal of Honor Flag by the 
     Secretary of Defense under such section.
       Sec. 8144. (a) The conditions described in section 1305 of 
     the National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 22 U.S.C. 5952 note) shall not apply to 
     the obligation and expenditure of funds for fiscal years

[[Page 19920]]

     2000, 2001, 2002 and 2003 for the planning, design, or 
     construction of a chemical weapons destruction facility in 
     Russia if the President submits to Congress a written 
     certification that includes--
       (1) a statement as to why waiving the conditions is 
     important to the national security interests of the United 
     States;
       (2) a full and complete justification for exercising this 
     waiver; and
       (3) a plan to promote a full and accurate disclosure by 
     Russia regarding the size, content, status, and location of 
     its chemical weapons stockpile.
       (b) Expiration of Authority.--The authority under paragraph 
     (a) shall expire on September 30, 2003.
       Sec. 8145. Effecitve as of August 2, 2002, the 2002 
     Supplemental Appropriations Act for Further Recovery From and 
     Response To Terrorist Attacks on United States (Public Law 
     107-206) is amended--
       (1) in section 305(a) (116 Stat. 840), by striking ``fiscal 
     year 2002'' and inserting ``fiscal years 2002 and 2003''; and
       (2) in section 309 (116 Stat. 841), by striking ``of'' 
     after ``instead''.
       Sec. 8146. The Secretary of Defense may modify the grant 
     made to the State of Maine pursuant to section 310 of the 
     2002 Supplemental Appropriations Act for Further Recovery 
     From and Response To Terrorist Attacks on the United States 
     (Public Law 107-206) such that the modified grant is for 
     purposes of supporting community adjustment activities 
     relating to the closure of the Naval Security Group Activity, 
     Winter Harbor, Maine (the naval base on Schoodic Point, 
     within Acadia National Park), and the reuse of such Activity, 
     including reuse as a research and education center the 
     activities of which may be consistent with the purposes of 
     Acadia National Park, as determined by the Secretary of the 
     Interior. The grant may be so modified not later than 60 days 
     after the date of the enactment of this Act.
       Sec. 8147. None of the funds appropriated by this Act may 
     be used for leasing of transport/VIP aircraft under any 
     contract entered into under any procurement procedures other 
     than pursuant to the Competition and Contracting Act.
       Sec. 8148. (a) Funds appropriated by title II under the 
     heading ``Operation and Maintenance, Defense-Wide'' may be 
     used by the Military Community and Family Policy Office of 
     the Department of Defense for the operation of 
     multidisciplinary, impartial domestic violence fatality 
     review teams of the Department of Defense that operate on a 
     confidential basis.
       (b) Of the total amount appropriated by title II under the 
     heading ``Operation and Maintenance, Defense-Wide'', 
     $5,000,000 may be used for an advocate of victims of domestic 
     violence to provide confidential assistance to victims of 
     domestic violence at military installations.
       (c) Not later than June 30, 2003, the Secretary of Defense 
     shall submit to the Congress a report on the implementation 
     of the recommendations included in the reports submitted to 
     the Secretary by the Defense Task Force on Domestic Violence.
       Sec. 8149. (a) Limitation on Number of Government Charge 
     Card Accounts during Fiscal Year 2003.--The total number of 
     accounts for government purchase charge cards and government 
     travel charge cards for Department of Defense personnel 
     during fiscal year 2003 may not exceed 1,500,000 accounts.
       (b) Requirement for Creditworthiness for Issuance of 
     Government Charge Card.--(1) The Secretary of Defense shall 
     evaluate the creditworthiness of an individual before issuing 
     the individual a government purchase charge card or 
     government travel charge card.
       (2) An individual may not be issued a government purchase 
     charge card or government travel charge card if the 
     individual is found not credit worthy as a result of the 
     evaluation under paragraph (1).
       (c) Disciplinary Action for Misuse of Government Charge 
     Card.--(1) The Secretary shall establish guidelines and 
     procedures for disciplinary actions to be taken against 
     Department personnel for improper, fraudulent, or abusive use 
     of government purchase charge cards and government travel 
     charge cards.
       (2) The guidelines and procedures under this subsection 
     shall include appropriate disciplinary actions for use of 
     charge cards for purposes, and at establishments, that are 
     inconsistent with the official business of the Department or 
     with applicable standards of conduct.
       (3) The disciplinary actions under this subsection may 
     include--
       (A) the review of the security clearance of the individual 
     involved; and
       (B) the modification or revocation of such security 
     clearance in light of the review.
       (4) The guidelines and procedures under this subsection 
     shall apply uniformly among the Armed Forces and among the 
     elements of the Department.
       (d) Report.--Not later than June 30, 2003, the Secretary 
     shall submit to the congressional defense committees a report 
     on the implementation of the requirements and limitations in 
     this section, including the guidelines and procedures 
     established under subsection (c).
       Sec. 8150. Notwithstanding any provision of the Defense 
     Base Closure and Realignment Act of 1990 (part A of title 
     XXIX of Public Law 101-510; 10 U.S.C. 2687 note) or any other 
     provision of law, the Secretary of the Navy shall transfer 
     administrative jurisdiction of the portion of the former 
     Charleston Naval Base, South Carolina, comprising a law 
     enforcement training facility of the Department of Justice, 
     together with any improvements thereon, to the head of the 
     department of the Federal Government having jurisdiction of 
     the Border Patrol as of the date of the transfer under this 
     section.

         TITLE IX--COMMERCIAL REUSABLE IN-SPACE TRANSPORTATION

     SEC. 901. SHORT TITLE.

       This title may be cited as the ``Commercial Reusable In-
     Space Transportation Act of 2002''.

     SEC. 902. FINDINGS.

       Congress makes the following findings:
       (1) It is in the national interest to encourage the 
     production of cost-effective, in-space transportation 
     systems, which would be built and operated by the private 
     sector on a commercial basis.
       (2) The use of reusable in-space transportation systems 
     will enhance performance levels of in-space operations, 
     enhance efficient and safe disposal of satellites at the end 
     of their useful lives, and increase the capability and 
     reliability of existing ground-to-space launch vehicles.
       (3) Commercial reusable in-space transportation systems 
     will enhance the economic well-being and national security of 
     the United States by reducing space operations costs for 
     commercial and national space programs and by adding new 
     space capabilities to space operations.
       (4) Commercial reusable in-space transportation systems 
     will provide new cost-effective space capabilities (including 
     orbital transfers from low altitude orbits to high altitude 
     orbits and return, the correction of erroneous satellite 
     orbits, and the recovery, refurbishment, and refueling of 
     satellites) and the provision of upper stage functions to 
     increase ground-to-orbit launch vehicle payloads to 
     geostationary and other high energy orbits.
       (5) Commercial reusable in-space transportation systems can 
     enhance and enable the space exploration of the United States 
     by providing lower cost trajectory injection from earth 
     orbit, transit trajectory control, and planet arrival 
     deceleration to support potential National Aeronautics and 
     Space Administration missions to Mars, Pluto, and other 
     planets.
       (6) Satellites stranded in erroneous earth orbit due to 
     deficiencies in their launch represent substantial economic 
     loss to the United States and present substantial concerns 
     for the current backlog of national space assets.
       (7) Commercial reusable in-space transportation systems can 
     provide new options for alternative planning approaches and 
     risk management to enhance the mission assurance of national 
     space assets.
       (8) Commercial reusable in-space transportation systems 
     developed by the private sector can provide in-space 
     transportation services to the National Aeronautics and Space 
     Administration, the Department of Defense, the National 
     Reconnaissance Office, and other agencies without the need 
     for the United States to bear the cost of production of such 
     systems.
       (9) The availability of loan guarantees, with the cost of 
     credit risk to the United States paid by the private-sector, 
     is an effective means by which the United States can help 
     qualifying private-sector companies secure otherwise 
     unattainable private financing for the production of 
     commercial reusable in-space transportation systems, while at 
     the same time minimizing Government commitment and 
     involvement in the development of such systems.

     SEC. 903. LOAN GUARANTEES FOR PRODUCTION OF COMMERCIAL 
                   REUSABLE IN-SPACE TRANSPORTATION.

       (a) Authority To Make Loan Guarantees.--The Secretary may 
     guarantee loans made to eligible United States commercial 
     providers for purposes of producing commercial reusable in-
     space transportation services or systems.
       (b) Eligible United States Commercial Providers.--The 
     Secretary shall prescribe requirements for the eligibility of 
     United States commercial providers for loan guarantees under 
     this section. Such requirements shall ensure that eligible 
     providers are financially capable of undertaking a loan 
     guaranteed under this section.
       (c) Limitation on Loans Guaranteed.--The Secretary may not 
     guarantee a loan for a United States commercial provider 
     under this section unless the Secretary determines that 
     credit would not otherwise be reasonably available at the 
     time of the guarantee for the commercial reusable in-space 
     transportation service or system to be produced utilizing the 
     proceeds of the loan.
       (d) Credit Subsidy.--
       (1) Collection required.--The Secretary shall collect from 
     each United States commercial provider receiving a loan 
     guarantee under this section an amount equal to the amount, 
     as determined by the Secretary, to cover the cost, as defined 
     in section 502(5) of the Federal Credit Reform Act of 1990, 
     of the loan guarantee.
       (2) Periodic disbursements.--In the case of a loan 
     guarantee in which proceeds of the loan are disbursed over 
     time, the Secretary shall collect the amount required under 
     this subsection on a pro rata basis, as determined by the 
     Secretary, at the time of each disbursement.
       (e) Other Terms and Conditions.--
       (1) Prohibition on subordination.--A loan guaranteed under 
     this section may not be subordinated to another debt 
     contracted by the United States commercial provider 
     concerned, or to any other claims against such provider.
       (2) Restriction on income.--A loan guaranteed under this 
     section may not--
       (A) provide income which is excluded from gross income for 
     purposes of chapter 1 of the Internal Revenue Code of 1986; 
     or
       (B) provide significant collateral or security, as 
     determined by the Secretary, for other obligations the income 
     from which is so excluded.

[[Page 19921]]

       (3) Treatment of guarantee.--The guarantee of a loan under 
     this section shall be conclusive evidence of the following:
       (A) That the guarantee has been properly obtained.
       (B) That the loan qualifies for the guarantee.
       (C) That, but for fraud or material misrepresentation by 
     the holder of the loan, the guarantee is valid, legal, and 
     enforceable.
       (4) Other terms and conditions.--The Secretary may 
     establish any other terms and conditions for a guarantee of a 
     loan under this section, as the Secretary considers 
     appropriate to protect the financial interests of the United 
     States.
       (f) Enforcement of Rights.--
       (1) In general.--The Attorney General may take any action 
     the Attorney General considers appropriate to enforce any 
     right accruing to the United States under a loan guarantee 
     under this section.
       (2) Forbearance.--The Attorney General may, with the 
     approval of the parties concerned, forebear from enforcing 
     any right of the United States under a loan guaranteed under 
     this section for the benefit of a United States commercial 
     provider if such forbearance will not result in any cost, as 
     defined in section 502(5) of the Federal Credit Reform Act of 
     1990, to the United States.
       (3) Utilization of property.--Notwithstanding any other 
     provision of law and subject to the terms of a loan 
     guaranteed under this section, upon the default of a United 
     States commercial provider under the loan, the Secretary may, 
     at the election of the Secretary--
       (A) assume control of the physical asset financed by the 
     loan; and
       (B) complete, recondition, reconstruct, renovate, repair, 
     maintain, operate, or sell the physical asset.
       (g) Credit Instruments.--
       (1) Authority to issue instruments.--Notwithstanding any 
     other provision of law, the Secretary may, subject to such 
     terms and conditions as the Secretary considers appropriate, 
     issue credit instruments to United States commercial 
     providers of in-space transportation services or system, with 
     the aggregate cost (as determined under the provisions of the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)) of 
     such instruments not to exceed $1,500,000,000, but only to 
     the extent that new budget authority to cover such costs is 
     provided in subsequent appropriations Acts or authority is 
     otherwise provided in subsequent appropriations Acts.
       (2) Credit subsidy.--The Secretary shall provide a credit 
     subsidy for any credit instrument issued under this 
     subsection in accordance with the provisions of the Federal 
     Credit Reform Act of 1990.
       (3) Construction.--The eligibility of a United States 
     commercial provider of in-space transportation services or 
     systems for a credit instrument under this subsection is in 
     addition to any eligibility of such provider for a loan 
     guarantee under other provisions of this section.

     SEC. 904. DEFINITIONS.

       In this title:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Defense.
       (2) Commercial provider.--The term ``commercial provider'' 
     means any person or entity providing commercial reusable in-
     orbit space transportation services or systems, primary 
     control of which is held by persons other than the Federal 
     Government, a State or local government, or a foreign 
     government.
       (3) In-space transportation services.--The term ``in-space 
     transportation services'' means operations and activities 
     involved in the direct transportation or attempted 
     transportation of a payload or object from one orbit to 
     another by means of an in-space transportation vehicle.
       (4) In-space transportation system.--The term ``in-space 
     transportation system'' means the space and ground elements, 
     including in-space transportation vehicles and support space 
     systems, and ground administration and control facilities and 
     associated equipment, necessary for the provision of in-space 
     transportation services.
       (5) In-space transportation vehicle.--The term ``in-space 
     transportation vehicle'' means a vehicle designed--
       (A) to be based and operated in space;
       (B) to transport various payloads or objects from one orbit 
     to another orbit; and
       (C) to be reusable and refueled in space.
       (6) United states commercial provider.--The term ``United 
     States commercial provider'' means any commercial provider 
     organized under the laws of the United States that is more 
     than 50 percent owned by United States nationals.
       This Act may be cited as the ``Department of Defense 
     Appropriations Act, 2003''.
       And the Senate agree to the same.

     Jerry Lewis,
     Bill Young,
     Joe Skeen,
     Dave L. Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Randy ``Duke'' Cunningham,
     Rodney P. Frelinghuysen,
     Todd Tiahrt,
     John P. Murtha,
     Norman D. Dicks,
     Martin Olav Sabo,
     Peter J. Visclosky,
     James P. Moran,
     Dave R. Obey
       (Except for sec. 8149 relating to corporate expatriates),
                                Managers on the Part of the House.

     Daniel K. Inouye,
     Ernest F. Hollings,
     Robert C. Byrd,
     Patrick J. Leahy,
     Tom Harkin,
     Byron L. Dorgan,
     Richard J. Durbin,
     Harry Reid,
     Dianne Feinstein,
     Herb Kohl,
     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete V. Domenici,
     Christopher S. Bond,
     Mitch McConnell,
     Richard C. Shelby,
     Judd Gregg,
     Kay Bailey Hutchinson,
                               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. 5010), making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 2003, 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, 2003, incorporates some of the provisions 
     of both the House and Senate versions of the bill. The 
     language and allocations set forth in House Report 107-532 
     and Senate Report 107-213 should be complied with unless 
     specifically addressed in the accompanying bill and statement 
     of the managers to the contrary.
       Senate Amendment: The Senate deleted the entire House bill 
     after the enacting clause and inserted the Senate bill. The 
     conference agreement includes a revised bill.

              Definition of Program, Project, and Activity

       The conferees agree that for the purposes of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (Public Law 
     99-177) as amended by the Balanced Budget and Emergency 
     Deficit Control Reaffirmation Act of 1987 (Public Law 100-
     119) and by the Budget Enforcement Act of 1990 (Public Law 
     101-508), the term program, project, and activity for 
     appropriations contained in this Act shall be defined as the 
     most specific level of budget items identified in the 
     Department of Defense Appropriations Act, 2003, 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 2004, 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 
     2004.

                         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.

                            Classified Annex

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

[[Page 19922]]

     
     


[[Page 19923]]

                        Force Structure Changes

       The conferees recommend a total of $110,100,000 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.....................................        2,600       28,000       17,700       48,300
Army Reserve Full-Time Support..............................       11,400        4,000  ...........       15,400
Army National Guard Full-Time Support.......................       35,100       11,300  ...........       46,400
----------------------------------------------------------------------------------------------------------------


                                               ACTIVE END STRENGTH
                                               [Fiscal Year 2003]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Conference vs.
                                                                      Budget        Conference        budget
----------------------------------------------------------------------------------------------------------------
Army............................................................         480,000         480,000  ..............
Navy............................................................         375,700         375,700  ..............
Marine Corps....................................................         175,000         175,000  ..............
Air Force.......................................................         359,000         359,000  ..............
                                                                 -----------------------------------------------
  Total, Active Personnel.......................................       1,389,700       1,389,700  ..............
----------------------------------------------------------------------------------------------------------------


[[Page 19924]]




[[Page 19925]]


[[Page 19926]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Pay and Allowances of Officers:
  600  Separation Pay/$30,000 Lump Sum Bonus....................-26,000
Budget Activity 2: Pay and Allowances of Enlisted Personnel:
  800  Basic Pay/CT-FP DERF Transfer--CINC Protective Services Detai963
  825  Retired Pay Accrual/CT-FP DERF Transfer--CINC Protective 
    Services Detail.................................................264
  1100  Special Pays/Enlistment Bonuses.........................-24,000
  1100  Special Pays/Selective Reenlistment Bonus...............-13,000
  1200  Separation Pays/$30,000 Lump Sum Bonus...................-3,000
  1250  Social Security Tax/CT-FP DERF Transfer--CINC Protective 
    Services Detail..................................................73
Budget Activity 6: Other Military Personnel Costs:
  2450  Unemployment Benefits....................................-5,375
Other Adjustments:
  2780  DHP Accrual Reestimate.................................-110,700
  2790  Unobligated Balances....................................-50,000
  2800  Adopted Legislative Proposals.............................6,400

                  Selective Reenlistment Bonus Program

       The conferees direct the Army to transfer $13,000,000 from 
     Selective Reenlistment Bonus initial payments to anniversary 
     payments to cover the anticipated shortfall in anniversary 
     payments during fiscal year 2003.

[[Page 19927]]

     
     


[[Page 19928]]



[[Page 19929]]



[[Page 19930]]



[[Page 19931]]



[[Page 19932]]



[[Page 19933]]



[[Page 19934]]



[[Page 19935]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Pay and Allowances of Officers:
  8750  Special Pays/High Deployment Per Diem Allowances...........-383
  8750  Special Pays/Critical Skills Accession Bonus............-18,300
  8750  Special Pays/Critical Skills Retention Bonus............-20,000
  8850  Separation Pay/$30,000 Lump Sum Bonus...................-32,000
Budget Activity 2: Pay and Allowances of Enlisted Personnel:
  9350  Special Pays/High Deployment Per Diem Allowances.........-1,898
  9350  Special Pays/Selective Reenlistment Bonus................-5,000
  9450  Separation Pay/$30,000 Lump Sum Bonus....................-1,000
Budget Activity 6: Other Military Personnel Costs:
  10700  Unemployment Benefits...................................-6,747
Other Adjustments:
  10980  B-52 Force Structure.....................................2,600
  11080  DHP Accrual Reestimate.................................-82,800
  11090  Adopted Legislative Proposals............................4,220

                   National Guard and Reserve Forces

       The conferees agree to provide $14,312,543,000 in Reserve 
     personnel appropriations, $13,936,917,000 in Reserve 
     operation and maintenance appropriations, and $100,000,000 in 
     the National Guard and Reserve Equipment appropriation. These 
     funds support a Selected Reserve end strength of 864,558 as 
     shown below.

                                          Selected Reserve End Strength
                                               [Fiscal Year 2003]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Conference vs.
                                                                      Budget        Conference        budget
----------------------------------------------------------------------------------------------------------------
Selected Reserve:
    Army Reserve................................................         205,000         205,000  ..............
    Navy Reserve................................................          87,800          87,800  ..............
    Marine Corps Reserve........................................          39,558          39,558  ..............
    Air Force Reserve...........................................          75,600          75,600  ..............
    Army National Guard.........................................         350,000         350,000  ..............
    Air National Guard..........................................         106,600         106,600  ..............
                                                                 -----------------------------------------------
      Total.....................................................         864,558         864,558         864,558
                                                                 ===============================================
AGR/TARS:
    Army Reserve................................................          13,588          13,888            +300
    Navy Reserve................................................          14,572          14,572  ..............
    Marine Corps Reserve........................................           2,261           2,261  ..............
    Air Force Reserve...........................................           1,498           1,498  ..............
    Army National Guard.........................................          23,768          24,662            +894
    Air National Guard..........................................          11,697          11,727             +30
                                                                 -----------------------------------------------
      Total.....................................................          67,384          68,608          +1,224
                                                                 ===============================================
Technicians:
    Army Reserve................................................           7,344           7,594            +250
    Air Force Reserve...........................................           9,911           9,911  ..............
    Army National Guard.........................................          25,215          25,702            +487
    Air National Guard..........................................          22,845          22,845  ..............
                                                                 -----------------------------------------------
      Total.....................................................          65,315          66,052            +737
----------------------------------------------------------------------------------------------------------------


[[Page 19936]]




[[Page 19937]]


[[Page 19938]]


[[Page 19939]]


[[Page 19940]]


[[Page 19941]]


[[Page 19942]]


[[Page 19943]]


[[Page 19944]]


[[Page 19945]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Unit and Individual Training:
  14800  Pay Group A Training/AT Participation Rates............-18,000
Other Adjustments:
  15370  Emergency Spill Response Program...........................600
  15390  Additional Full-Time Support............................35,100
  15400  DHP Accrual Reestimated................................-34,200
  15420  Adopted Legislative Proposals...........................$2,100

                   Active Guard and Reserve Personnel

       The conferees recommend a total of $35,100,000 for 
     additional Active Guard and Reserve (AGR) personnel, instead 
     of $28,400,000 as proposed by the House and Senate. The 
     additional $6,700,000, offset by a reduction in Research, 
     Development, Test and Evaluation, Defense-Wide, line 74, will 
     provide 52 AGRs for security at the Missile Defense Agency 
     Test Bed site at Fort Greely, Alaska and 33 AGRs for 
     emergency defensive operations at Fort Greely, Alaska and 
     Colorado Springs, Colorado.

[[Page 19946]]

     
     


[[Page 19947]]



[[Page 19948]]



[[Page 19949]]

                        Management Reserve Funds

       Each service headquarters retains a portion of its 
     operation and maintenance appropriation as a reserve to meet 
     emergent needs. From fiscal year 1999 through fiscal year 
     2002, the services set aside the following amounts in 
     management reserve funds: Army, $278,000,000; Navy, 
     $466,000,000; Air Force, $200,000,000; and, Marine Corps, 
     $96,000,000. In fiscal year 2002 alone, the Army set aside 
     $128,000,000; the Navy, $150,000,000; the Air Force, 
     $50,000,000; and, the Marines, $30,000,000. These funds are 
     used at the discretion of the service chiefs or service 
     secretaries and, since fiscal year 1999, have been used for 
     projects ranging in cost from $5,000 to $40,100,000.
       The amount retained by the Army in the management reserve 
     fund grew from $50,000,000 in fiscal year 2001 to 
     $128,000,000 in fiscal year 2002. The Navy increased its 
     management reserve from $81,000,000 in fiscal year 1999 to 
     $150,000,000 in fiscal year 2002. The Marine Corps' 
     management reserve historically has been between $30,000,000, 
     and $40,000,000, significantly higher than the Army, Navy, 
     and Air Force reserve funds when considered as a percentage 
     of the operation and maintenance funding provided for each 
     service. The Air Force management reserve fund has remained 
     constant at $50,000,000 per year. The services have applied 
     the reserve funds to address a broad range of requirements, 
     ranging from employment kiosks at minority institutions, to 
     funding for a North Atlantic Treaty Organization Meeting, to 
     ship and aircraft depot maintenance.
       The conferees acknowledge the utility of retaining a small 
     amount of the operation and maintenance funds appropriate for 
     each service in the service headquarters to address emergent 
     requirements. the conferees are concerned, however, with the 
     recent growth in the amounts retained in the management 
     reserve funds. Further, the growing amounts that the service 
     chiefs and service secretaries have chosen to withhold from 
     distribution to field activities call into question the 
     validity of the budget justification process.
       The conferees direct that not more than the following 
     amounts may be used for service chief/service secretary 
     reserve funds:

Operation and Maintenance, Army.............................$50,000,000
Operation and Maintenance, Navy..............................50,000,000
Operation and Maintenance, Marine Corps......................10,000,000
Operation and Maintenance, Air Force.........................50,000,000

       Additionally, the conferees direct that not later than 60 
     days after the end of fiscal year 2003, the Secretary of the 
     Army, the Secretary of the Navy, and the Secretary of the Air 
     Force shall each submit to the congressional defense 
     committees a report detailing service chief/service secretary 
     reserve fund expenditures during the fiscal year.

                            Midway Airfield

       The conferees are aware of the continuing efforts to forge 
     a long term solution for the operation and maintenance of the 
     Midway Island airfield, and are aware that Department of 
     Defense aircraft used the Midway facility 17 times in fiscal 
     year 2002. The conferees encourage the Department of Defense, 
     in conjunction with the Department of the Interior, to 
     identify a long-term contracting solution to continue the 
     availability of this airfield in a manner which meets the 
     refueling and emergency divert airfield requirements of 
     military aircraft.

[[Page 19950]]

     
     


[[Page 19951]]



[[Page 19952]]



[[Page 19953]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  250  All Terrain Military Utility Vehicles......................2,900
  250  Hydration on the Move System, Including Chem/Bio Sys.......1,000
  250  Modular Lightweight Load-Carrying Equipment (MOLLE)........3,600
  250  Modular General Purpose Tent System (MGPTS)................1,200
  250  Expendable Light Air Mobility Shelter......................2,500
  450  Camera Assisted Monitoring System (CAMS)...................4,000
  450  SBCT Implementation.......................................42,500
  550  Continuity of Operations DERF--Alt Nat Cmd Ctr............44,000
  550  CT/FP DERF--Physical Security Equipment...................76,900
  550  CT/FP DERF--Physical Security Equipment trans to OPA.....-76,900
  550  ITAM Program at Army NTC...................................1,000
  550  Corrosion Prevention and Control Program at CCAD and Fort H1,500
  600  Studies, analysis and headquarters growth................-10,000
  750  USARSO headquarters growth................................-1,000
  750  Other Contracts, unjustified program growth...............-5,000
  750  Training and Support Facilities--Continue Ft. Irwin facility and 
    road improvements.............................................6,000
  800  Airborne Barracks--Ft. Benning, Georgia....................2,000
  800  Ft. Lewis SRM, Vancouver Barracks preservation.............3,700
  850  USARPAC C41 PACMERS........................................4,300
  850  USARPAC C4 shortfalls......................................5,100
  850  Management and Operational Headquarters, unjustified program 
    growth.......................................................-2,000
  900  DERF transfer--CINC AT/FP staff............................9,400
  900  Hunter UAV.................................................6,000
  950  Nuclear Posture Review DERF--Info Systems Security........15,000
Budget Activity 3: Training and Recruiting:
  1650  SROTC--Air Battle Captain Program.........................1,400
  1850  Sec, Comms & Info Opns DERF--Army Lang Pgm TIARA.........19,500
  1850  Sec, Comms & Info Opns DERF--Contr Linguists TIARA........9,400
  1850  Sec, Comms & Info Opns DERF--Contract Linguists Interrogat5,000
  1850  Military Police MCTFT joint training......................1,700
  1850  SCOLA language training...................................1,000
  2000  Defense Language Institute (DLI) LandNet..................1,000
  2000  TRADOC Transformation, unjustified program increase.....-15,000
  2000  Ft. Knox Distance Learning................................2,100
  2050  DoD Monterey Bay Center furniture and equipment...........1,000
  2100  Restoration and modernization of dining facilities........2,300
  2200  Contract Recruiting Companies............................-5,000
  2350  Online Technology Training Pilot Program Ft. Lewis........1,000
  2450  Sec, Comms & Info Opns DERF--PE0135197....................2,300
Budget Activity 4: Administration and Servicewide Activities:
  2650  Continuity of Operations DERF--CONUS Support..............2,000
  2650  Sec, Comms & Info Opns DERF--Battle Space Character.......2,000
  2650  Sec, Comms & Info Opns DERF--Sec & Invest backlog........10,000
  2650  Sec, Comms & Info Opns DERF--Information Dominance........1,000
  2750  Second Destination Transportation, unjustified pgm growt-18,000
  2750  MTMC DRMEC demo project including RAPID...................2,000
  2800  Pulse Technology--Army Battery Management Program.........3,200
  2850  AIT/RFID Program at Sierra Army Depot.....................1,000
  2850  Electronic Maintenance System (EMS)/Point-to-Point Wiring and 
    Signal Tracing................................................1,000
  2850  Logistics and Technology Program..........................1,000
  3000  Sec, Comms & Info Opns DERF--Crit Infr Protect (CIP)........600
  3000  Administration..........................................-17,000
  3000  Biometrics Support........................................9,500
  3050  Continuity of Operations DERF--JMIP CONUS Support.........5,000
  3050  Sec, Comms & Info Opns DERF--Collaboration Planning/Enable2,500
  3050  Sec, Comms & Info Opns DERF--CONUS Support, CIP.............500
  3050  Servicewide Communications..............................-22,000
  3050  Army Information Systems.................................-6,000
  3050  Army Enterprise Architecture.............................-6,000
  3100  Manpower Management......................................-3,000
  3150  Chaplain--Building Strong and Ready Families Pgm..........1,000
  3200  Other Service Support...................................-10,000
  3200  Army Conservation and Ecosystem Management................3,400
  3300  Real Estate Management--underexecution...................-2,000
  3350  Worker Safety Pilot Program at Fort Bragg, NC and Watervliet, 
    NY expansion..................................................2,500
  3350  Innovative Safety Management..............................2,500
  3400  Army Chapel Renovation Matching Funds Program.............3,400
  3400  Rock Island Bridge Repairs................................1,700
  3400  Yukon training infrastructure and access upgrades.........1,700
  3400  Ft. Richardson Bldg. 802 repairs..........................3,900
  3400  Ft. Wainwright utilidors..................................8,500
  3400  Tanana River bridge study.................................1,275
Undistributed:
  3710  Classified Programs......................................42,153
  3720  Memorial Events.............................................800
  3730  Repairs at Fort Baker.....................................2,500
  3960  FECA Surcharge...........................................-8,799
  3970  Un-obligated Balance....................................-50,000
  3980  CONOPS Costs............................................-50,000
  4035  Anti-corrosion programs...................................1,000
  4037  Utilities privatization..................................-9,000
  4045  PACOM Infrastructure Modernization Program--transfer To -41,800
  4050  EUSA command and control--transfer to OPA................-4,700
  4055  USARPAC Comms equipment fielding--transfer to OPA........-3,200
  4060  PACOM Infrastructure Modernization Program--transfer To OPA-620

                  Army Budget Justification Materials

       The conferees recognize the importance of the budgetary 
     management improvement process undertaken by the Under 
     Secretary of the Army to provide more meaningful budget 
     justification materials for future budget submissions. The 
     conferees strongly encourage further efforts to ensure 
     programmatic accountability, integrity, management, and 
     oversight, which may continue to benefit from an independent 
     third party experienced in federal assurance services to 
     mitigate program and operational risk, and to ensure quality.

  Soldier Equipment--Organizational Clothing and Individual Equipment

       The conferees are aware that experience in Afghanistan 
     showed once again that while the Army is continuing to invest 
     significant sums in developing better soldier equipment, the 
     system to get that equipment to soldiers still has major 
     shortcomings. Consequently, the Army now estimates that its 
     soldiers spend on average about $300 per year out of pocket 
     to buy additional necessary equipment ranging from hydration 
     systems to GPS receivers. Equipment shortages reported by 
     American soldiers in Afghanistan and elsewhere include modern 
     knee and elbow pads, hydration systems to replace canteens, 
     GPS receivers, lensatic compasses, sunglasses, helmet pads, 
     polypropylene underwear, assault packs, close combat optics,

[[Page 19954]]

     soldier intercoms, viper binoculars, black fleece and ``bear 
     suits'', thermal weapons sights, body armor, and other 
     important basic gear. In Afghanistan, some soldiers reported 
     the loss of circulation in their arms in situations where 
     they had to wear the new Interceptor Body Armor with the 
     ALICE rucksack frame or the current Load Bearing Vest instead 
     of the MOLLE pack for which it was designed. Many Reserve 
     Components have a far worse equipment situation. For example, 
     soldiers from the 1-151st Infantry of the Indiana Army 
     National Guard personally purchased radios from local 
     discount department stores to serve as soldier intercoms for 
     their deployment to Bosnia. With the expected increased 
     OPTEMPO of both active and reserve forces to sustain the war 
     on terrorism, this problem is becoming evermore acute and 
     unacceptable.
       The conferees believe the Army leadership must take a fresh 
     look at the entire system for issuing soldier equipment. It 
     is unacceptable for American soldiers--both active and 
     reserve--to be deployed with anything but the best equipment 
     the Army has developed, and it must be a priority objective 
     to dramatically improve the situation where soldiers deploy 
     with lower quality gear that could cost their lives. In the 
     short term this will require more investment in the Soldier 
     Enhancement Program, the Centralized Funding and Fielding 
     activity, and other accounts whose purpose is to field new 
     equipment to soldiers expeditiously. In the long term, the 
     Army must retool its practices and procedures for equipping 
     its soldiers, in order to field the most advanced gear faster 
     and to more soldiers. The Secretary of the Army is directed 
     to submit a report to the congressional defense committees by 
     May 1, 2003 assessing and identifying the major soldier 
     equipment shortages in all major active and reserve component 
     units, identifying the highest priority Army-wide soldier 
     equipment items that require higher procurement rates and 
     faster distribution, and explaining how the Army plans to 
     address those needs. This report shall also present the 
     Army's plan and timetable for transforming its practices and 
     procedures for procuring and distributing soldier equipment 
     in order to dramatically improve the distribution of modern 
     soldier equipment across the board to all units--both active 
     and reserve.

               NationaL Memorial Cemetery of the Pacific

       The conferees are pleased that the Department of the Army 
     has been able to accomplish the necessary research and 
     coordination with the Department of Veterans Affairs in order 
     to bring about the remarking of 178 graves at the National 
     Memorial Cemetery of the Pacific, to properly denote service 
     members killed on December 7, 1941 on United States Ships 
     Oklahoma, West Virginia, California, Utah, Nevada, and 
     Curtis, as well as Hickam Air Field. The Conferees understand 
     that the new grave markers will be provided to the National 
     Cemetery in Hawaii by approximately November 20, 2002 with 
     the goal of replacing the 178 grave markers by December 7, 
     2002.

                         Internet Access Korea

       The conferees direct that of the funds provided in 
     Operation and Maintenance, Army, $2,500,000 shall be 
     available only to accelerate the Army Knowledge Online pilot 
     program to full implementation in order to provide access to 
     internet and electronic mail services for soldiers stationed 
     in the Republic of Korea.

                               Fort Baker

       The conference agreement provides an additional $2,500,000 
     to continue infrastructure repairs at Fort Baker. The 
     accompanying bill provides authority to transfer these funds 
     under the same terms and conditions and to the same federal 
     recipient as specified under Operation and Maintenance, Army, 
     in P.L. 107-117

                          Lowry Bombing Range

       The Conferees are aware of the unique environmental clean-
     up measures needed at the former Lowry Bombing and Gunnery 
     Range, and recognize the importance of expediting restoration 
     and containment activities to permit planned development in 
     the surrounding area to proceed without delay. The conferees 
     encourage the Corps of Engineers to provide sufficient 
     resources, and select appropriate clean-up and containment 
     methodologies, in a timely manner, to ensure that the Jeep 
     demolition range and the 20-millimeter range areas are safe 
     for future economic, educational and recreational activities.

               Sustainment, Restoration and Modernization

       The conferees direct that facilities sustainment, 
     restoration and modernization funds recommended in this bill 
     shall provide the following program baseline in fiscal year 
     2003. Any adjustments directed in the bill shall be applied 
     to this baseline:

                       [In thousands of dollars]

AMC.............................................................126,000
ATEC.............................................................71,888
COE...............................................................8,050
EUSA............................................................128,000
FORSCOM.........................................................400,206
MDW..............................................................57,674
MEDCOM...........................................................28,000
MTMC.............................................................22,229
OSA..............................................................14,275
TRADOC..........................................................358,430
USAREUR.........................................................332,702
USARPAC.........................................................207,420
USARSO............................................................9,659
USMA.............................................................57,102
Site R............................................................3,010
                                                       ________________
                                                       
    Total.....................................................1,823,945

                        Broadway Armory Project

       The conferees direct the Secretary of the Army to provide 
     funding, from within available funds under Operation and 
     Maintenance, Army, for the Chicago Park District's Broadway 
     Armory project, consistent with Section 8161 of Public Law 
     107-117.

[[Page 19955]]

     
     


[[Page 19956]]



[[Page 19957]]



[[Page 19958]]



[[Page 19959]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  4500  Sea Sparrow Test Set Upgrade..............................4,300
  4900  Continuity of Operations DERF, software licenses CNSG.....5,000
  4900  Sec, Comms & Info Opns DERF--Cryptologic Direct Support...2,000
  5050  Apprentice, Engineering Technician and CO-OP Program NUWC 
    Keyport.......................................................1,400
  5050  Apprentice, Engineering Technician and CO-OP Program IMF Ban700
  5050  Improved Engineering Design Process.......................4,000
  5050  Shipyard Apprentice Program..............................10,000
  5050  PHNSY SRM................................................13,800
  5400  Warfare Tactics PMRF.....................................17,000
  5450  Hydrographic Center of Excellence.........................2,500
  5500  Continuity of Operations DERF--Office of Navy Intelligence Data 
    Backup........................................................2,000
  5500  Sec, Comms & Info Opns DERF--Classified...................1,000
  5500  Sec, Comms & Info Opns DERF--Analysts.....................3,000
  5500  Sec, Comms & Info Opns DERF--SCI GCCS I3..................3,800
  5500  Sec, Comms & Info Opns DERF--GENSER GCCS I3...............5,400
  5500  Sec, Comms & Info Opns DERF--JDIS/LOCE/CENTRIX............5,300
  5500  Sec, Comms & Info Opns DERF--CMMA.........................1,500
  5500  Sec, Comms & Info Opns DERF--CMMA........................17,000
  5500  Sec, Comms & Info Opns DERF--JWICS Connectivity...........5,500
  5500  Center of Excellence for Disaster Management and Humanitarian 
    Assistance....................................................4,300
  5550  MROD testing, repair and replacement......................1,000
  5550  Central Command deployable HQ spares & tech supt..........2,500
  5850  CT/FP DERF--Strat Security Forces & Technicians...........7,000
  5900  In-service Weapons Systems Support, underexecution.......-3,000
  5950  Sec, Comms & Info Opns DERF--Pioneer......................6,000
  5950  Mark-45 Gun, 5" Depot Overhauls..........................10,500
  5950  Mark-245 Decoys...........................................1,000
  6210  CT/FP DERF--Site Improvement, SRM.......................219,200
  6210  Homeland Security--Guantanamo Bay Operations..............2,500
  6210  NAS North Island CNAF Facility Renovation Projects........2,600
  6220  CT/FP DERF--Security Forces and Technicians.............143,096
  6220  CT/FP DERF--Law Enforcement..............................32,573
  6220  CT/FP DERF--Management and Planning.......................1,712
  6220  CT/FP DERF--Shipyard Security Forces and Tech............28,000
  6220  Homeland Security DERF--Base Supt Svcs--Guantanamo.......38,500
  6220  Critical Asset Vulnerability Assessment, Navy Region NW...1,100
  6220  Northwest Environmental Resource Centers..................4,200
  6220  Combating Terrorism Data Base Sys (CDTS) Remote Data Repos1,200
  6220  Earle Naval Weapons Station, NJ...........................1,250
Budget Activity 2: Mobilization:
  6500  Ex-Oriskany Remediation, Demil and Disposal...............2,800
  6500  Ship Disposal Project.....................................3,500
  6500  Ship Disposal Program--James River.......................20,000
  6600  Homeland Security--Medical Operations--Guantanamo.........4,000
Budget Activity 3: Training and Recruiting:
  7000  ROTC Unit Operating Costs.................................2,000
  7200  Sec, Comms & Info Opns DERF--Pre-deploy Training..........1,000
  7200  Sec, Comms & Info Opns DERF--Imagery Training Init........1,000
  7300  NPS unjustified program growth...........................-2,000
  7350  Center for Civil-Military Relations at NPS................1,000
  7350  CNET Distance Learning....................................3,400
  7350  Prototype System for Embedded Training and Performance Supt--
    CNET..........................................................1,000
  7350  Navy Learning Network Program CNET........................2,600
  7600  Continuing Education Distance Learning....................1,000
  7700  Naval Sea Cadet Corps.....................................1,000
  7820  CT/FP DERF--Site Improvement.............................42,000
  7830  CT/FP DERF--Security Forces and Tech......................1,500
  7830  Fire Fighter Protective Equipment Maintenance Pilot, Puget 
    Sound Federal Fire Dept, NW Region..............................500
Budget Activity 4: Administration and Servicewide Activities:
  8000  CT/FP DERF--HQ Management and Planning....................1,600
  8000  Administration Unsupported Growth........................-6,000
  8000  Navy-wide PVCS Enterprise license.........................2,500
  8250  Continuity of Opns DERF--Various/ONI Data Backup..........3,000
  8250  CT/FP DERF--HQ Management and Planning....................3,920
  8250  Sec, Comms & Info Opns DERF--Computer Network Def.........3,800
  8250  Sec, Comms & Info Opns DERF--Enclave Boundary.............1,200
  8250  Sec, Comms & Info Opns DERF--Intrusion Detection..........1,140
  8250  Servicewide Communications..............................-12,000
  8250  Critical Infrastructure Protection Program................5,100
  8500  Servicewide Transportation...............................-1,000
  8550  Stainless Steel Sanitary Space System.....................2,500
  8550  Planning, Engineering and Design........................-15,000
  8600  Sec, Comms & Info Opns DERF--Acquisition and PM...........5,500
  8600  Acquisition and Program Management......................-16,000
  8600  Space and Naval Warfare Info Tech Center (SITC)...........1,500
  8600  Naval Armory Inventory and Custody Tracking.................800
  8650  Air Systems Support......................................-8,000
  8650  Configuration Management Info System (CMIS)...............2,800
  8700  Advanced Technical Information Support....................1,800
  8700  Flash Detection System......................................900
  8800  Sec, Comms & Info Opns DERF--Carryon Cryptologic Sys........500
  9000  Continuity of Operations DERF--Various/Navy Criminal 
    Investigations................................................2,000
  9000  CT/FP DERF--Intel Security & Invest Matters...............3,500
  9000  Sec, Comms & Info Opns DERF--HUMINT.......................3,700
  9000  Sec, Comms & Info Opns DERF--Counter Surveillance and Law 
    Enforcement...................................................5,000
  9220  CT/FP DERF--Site Improvement--SRM........................13,000
  9230  NAS Jacksonville and NAS Mayport Anti-Corrosion Init......1,000
Undistributed:
  9280  Classified Programs......................................41,664
  9400  Legislative Proposals Not Adopted........................-2,100
  9410  Non-NMCI IT Savings.....................................-20,000
  9430  FECA Surcharge..........................................-14,764
  9440  Un-obligated Balance....................................-82,000
  9510  Anti-corrosion programs...................................1,000
  9530  CINCPACFLT Ultra-thin Client Pilot Program................5,000

                          Ex-Oriskany Disposal

       The conferees recommend an additional $2,800,000 in 
     Operation and Maintenance,

[[Page 19960]]

     Navy for the remediation, demilitarization and disposal of 
     the Ex-Oriskany in the manner determined by the Secretary of 
     the Navy to be most advantageous.

                   Naval Shipyard Apprentice Program

       The conferees agree to provide an increase of $10,000,000 
     for the Shipyard Apprentice program. The conferees direct 
     that during fiscal year 2003 the Navy shall induct classes of 
     no fewer than 125 apprentices, respectively, at each of the 
     Naval Shipyards. The conferees further direct the Navy to 
     include the costs of the fiscal year 2004 class of 
     apprentices in the budget request.

                 Navy Pilot Human Resources Call Center

       The conferees direct that of the funds provided in 
     Operation and Maintenance, Navy, not less than $1,000,000 
     shall be made available for the Navy Pilot Human Resources 
     Call Center, Cutler, Maine.

                     Casualty Care Research Center

       The conferees recommend $4,300,000 for the Center of 
     Excellence for Disaster Management and Humanitarian 
     Assistance (COE), of which $600,000 shall be made available 
     for the Casualty Care Research Center.

                         Central Kitsap School

       The conferees included a general provision, Section 8108, 
     that includes $2,700,000 for a grant to the Central Kitsap 
     School District for the construction and outfitting of the 
     Central Kitsap School special needs learning center, to meet 
     the needs of Department of Defense special needs students at 
     Submarine Base Bangor, Washington.

                       Classification of Vessels

       The American Bureau of Shipping has been expressly 
     designated in 46 U.S.C. 3316(a) as the chosen instrument of 
     the United States Government in classifying all vessels owned 
     by the United States Government (including those leased or 
     bareboat chartered) and in matters related to classification. 
     The conferees therefore note with approval Military Sealift 
     Command's compliance with those requirements in its recent 
     request for proposal for a high speed vessel and expect 
     continued compliance in all subsequent procurements, 
     excluding experimental or service unique vessels, theater-
     assigned assets, or as designated by the service secretary. 
     Congress designated the American Bureau of Shipping for those 
     purposes in furtherance of the national interest in a strong 
     merchant marine and industrial base, and the conferees expect 
     all government agencies to comply with 46 USC 3316(a).

                       Navy Marine Corps Intranet

       The conferees believe that the Navy has made significant 
     progress in establishing an adequate test plan for the Navy 
     Marine Corps Intranet. Accordingly, the conferees have 
     included a general provision requiring that the next NMCI 
     decision point include an evaluation of the Operational 
     Assessment and a certification to the congressional defense 
     committees that the results of the assessment are acceptable 
     for additional seat orders.
       The conferees remain concerned, however, about the legacy 
     application challenges the program faces and believe that 
     greater attention must be paid to innovative, commercially 
     available secure technologies and solutions to address this 
     problem. In an NMCI Stakeholders' Council Issue Paper dated 
     more than one year ago, CINCPACFLT proposed the exploration 
     of using ultra thin clients as a solution to both the 
     security and software incompatibilities certain legacy 
     applications present to the NMCI network. To date, these 
     recommendations have not been acted on. The conferees 
     recommend $5,000,000 to conduct a pilot program at CINCPACFLT 
     using ultra thin clients integrated with a network security 
     solution previously evaluated by the National Security Agency 
     at a Level of Trust not less than B2, and currently at a 
     minimum Common Criteria Evaluation Assurance Level (EAL) of 
     not less than 4.

[[Page 19961]]

     
     


[[Page 19962]]



[[Page 19963]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  10050  Continuity of Operations DERF--Continuity of Intel.......1,000
  10050  Sec, Comms & Info Opns DERF--I-SURSS.......................700
  10050  Sec, Comms & Info Opns DERF--TRSS........................1,000
  10050  Sec, Comms & Info Opns DERF--TCAC..........................500
  10050  Sec, Comms & Info Opns DERF--RREP..........................200
  10050  Sec, Comms & Info Opns DERF--TPC...........................700
  10050  Sec, Comms & Info Opns DERF--MCIA Analytic Supt..........2,400
  10050  Sec, Comms & Info Opns DERF--TEG.........................1,000
  10050  Sec, Comms & Info Opns DERF--TROJAN Lite.................1,500
  10050  Sec, Comms & Info Opns DERF--ISR.........................2,900
  10050  Sec, Comms & Info Opns DERF--FLAMES/CESAS................2,000
  10050  Sec, Comms & Info Opns DERF--Computer Network Def........2,000
  10050  Sec, Comms & Info Opns DERF--Secure Wireless...............800
  10050  Sec, Comms & Info Opns DERF--Deployed Security Interdiction 
    Devices.........................................................700
  10050  Modular General Purpose Tent System (MGPTS)..............4,200
  10050  Joint Service NBC Defense Equipment Surveillance.........2,400
  10050  Polar Fleece shirts......................................1,000
  10150  Depot Maintenance of Radar Systems.......................4,300
  10200  CT/FP DERF--Physical Security Equipment................228,000
  10200  CT/FP DERF--CINC AT/FP Staffs............................3,200
  10200  CT/FP DERF--Physical Security Upgrades..................10,000
  10200  Training and Support Facilities.........................12,000
Budget Activity 4: Administration and Servicewide Support:
  11800  Continuity of Operations DERF--Site R....................1,000
Undistributed:
  12000  FECA Surcharge..........................................-1,283
  12100  Un-obligated Balance....................................-8,000
  12020  Anti-corrosion programs..................................1,000

                    Training and Support Facilities

       The conferees recommend an additional $12,000,000 in 
     Operation and Maintenance, Marine Corps of which $7,500,000 
     is provided only for mission critical requirements at the 
     Marine Air-Ground Task Force Training Center, and $4,500,000 
     is provided only for the seismic retrofit of buildings at 
     Barstow Marine Corps Logistics Base.

[[Page 19964]]

     
     


[[Page 19965]]



[[Page 19966]]



[[Page 19967]]



[[Page 19968]]

                    Adjustments to Budget Activities

       Adjustments to budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  12600  CONUS Combat Air Patrol DERF--Changed Alert Posture....380,000
  12600  Unmanned Aerial Vehicles DERF--Predator O&M..............9,000
  12600  F-16 Distributed Mission Training System.................8,500
  12600  B-52 Attrition Reserve..................................28,000
  12600  B-1 Bomber modifications.................................7,700
  12600  B-52 Engine Modification Study...........................3,000
  12775  Oklahoma City Air Logistics Center.......................1,400
  12800  AFSAA HQ program growth.................................-4,000
  12850  CT/FP DERF--AEF Force Prot Certification Tng............10,200
  12850  CT/FP DERF--WMD 1st Responder...........................46,000
  12850  PACAF server consolidation...............................6,800
  12900  CT/FP DERF--AT/FP Facilities Upgrades...................99,585
  12900  Wright-Patterson AFB Dormitory Renovation................1,800
  12900  11th AF Range upgrades--fiber optics and power...........6,800
  13000  CT/FP DERF--Geo Reach/Geo Base..........................25,800
  13000  Nuclear Posture Review DERF--Info Warfare Support........5,000
  13000  Sec, Comms & Info Opps DERF--Defense Recon Supt.........68,630
  13000  Sec, Comms & Info Opns DERF--Defense Recon Trans.......-68,630
  13050  University Partnership for Operational Support...........3,400
  13100  Continuity of Ops DERF--Nat'l Abn Cmd Ctr...............10,000
  13100  Continuity of Ops DERF--Aircraft Comms Mods..............3,600
  13100  Continuity of Ops DERF--UH-1 Support, NCR..................700
  13100  Continuity of Ops DERF--Comms Sys Operators Tng............500
  13100  Sec, Comms & Info Opns DERF--Commercial Imagery..........2,000
  13200  CT/FP DERF--CENTCOM PSD and Forward HQ.....................700
  13200  CT/FP DERF--CINC AT/FP Staff.............................5,500
  13200  Nuclear Posture Review DERF--Mgt HQ STRATCOM.............1,250
  13200  Nuclear Posture Review DERF--Info Warfare Supt...........4,000
  13200  Nuclear Posture Review DERF--Tactical Deception..........1,000
  13200  Sec, Comms & Info Opns DERF--Critical Infrastructure 
    Protection......................................................400
  13200  Management Supt for Air Force Battle Labs................4,300
  13250  Continuity of Ops DERF--Combat Air Intel Sys.............2,300
  13250  Continuity of Ops DERF--Special Purpose Comms............2,000
  13250  Continuity of Ops DERF--Tactical Info Program............5,000
  13250  Sec, Comms & Info Opps DERF--SEP classified..............1,200
  13250  Sec, Comms & Info Opns DERF--DCGS Architecture...........3,000
  13250  Sec, Comms & Info Opns DERF--Integrated Broadcast Service..100
  13250  Sec, Comms & Info Opns DERF--IBS Smart Pull Tech...........100
  13450  Space Control Systems, underexecution...................-5,000
  13500  Satellite Systems, underexecution.......................-2,000
  13550  Continuity of Ops DERF--Recon Supt Activities...........10,000
  13550  Other Space Operations, headquarters growth.............-5,000
Budget Activity 2: Mobilization:
  13900  Sec, Comms & Info Opns DERF--Critical Infrastructure 
    Protection....................................................1,800
  14000  Transportation Business Area, program growth..........-115,657
  14050  CT/FP DERF--AEF Force Protection Certification Training..4,800
  14050  CT/FP DERF--WMD 1st Responder...........................21,850
  14050  Combined Air Crew System Tester (CAST)...................2,500
  14100  CT/FP DERF--AT/FP Facility Upgrades.....................57,254
  14100  PACAF strategic airlift..................................2,600
Budget Activity 3: Training and Recruiting:
  14500  CT/FP DERF--AT/FP Facility Upgrades.....................16,341
  14650  MBU-20/P Oxygen Mask.....................................2,800
  14650  AWACS Modeling and Simulation System.......................500
  14700  Professional Development Education--underexecution, 
    unjustified growth in other costs............................-5,000
  14800  CT/FP DERF--WMD 1st Responder............................1,150
  15100  Workforce Shaping--civilian manpower mispricing.........-2,000
Budget Activity 4: Administration and Servicewide Activities:
  15400  Technical support activities--unjustified growth in other 
    contracts....................................................-4,000
  15450  Servicewide Transportation..............................-2,000
  15500  CT/FP DERF--AEF Force Protection Certification Training..2,900
  15500  CT/FP DERF--WMD 1st Responder............................4,600
  15500  Hickam AFB Alternative Fuel Vehicle Program..............1,000
  15500  Eielson AFB Utilidors....................................8,500
  15550  CT/FP DERF--AT/FP Facilities Upgrades....................3,976
  15650  Tanker Lease Pilot Program...............................3,000
  15650  Administration.........................................-10,000
  15700  Sec, Comms & Info Opns DERF--Modernization, Sustainment and 
    Dev...........................................................4,900
  15700  Sec, Comms & Info Opns DERF--Modernization, Sustainment and 
    Dev...........................................................1,700
  15700  Sec, Comms & Info Opns DERF--Intrusion Detect Sys........1,500
  15700  Servicewide Communications..............................-9,000
  15700  ALCOM Wide Mobile Radio Network............................421
  15750  Personnel Programs......................................-5,000
  15900  Arms control, underexecution............................-1,000
  15950  Other Servicewide Activities...........................-16,500
  15950  Range residue recycling program..........................2,600
  16100  William Lehman Aviation Center.............................750
  16150  NAIC Foreign Materials Exploitation Facility.............1,000
  16150  Conformable Lithography System AFIT Wright-Patterson AFB.1,000
  16250  Nuclear Posture Review DERF--Security and Investigative 
    Activities/on-line threat collection..........................2,000
  16250  Sec, Comms & Info Opns DERF--Def Security Service........5,000
Undistributed:
  16410  Classified Programs.....................................27,462
  16480  MTAPP....................................................4,200
  16580  FECA Surcharge..........................................-8,717
  16590  Aeronautical System Center Enterprise Infostructure Proto4,600
  16600  Threat Representation and Validation (TR&V)..............1,000
  16610  Classified NAIC operationalizing MASINT..................3,200
  16620  Information Assurance Initiative for Air Force Material 
    Command.......................................................1,100
  16630  Un-obligated Balance...................................-33,000
  16640  CONOPS Costs...........................................-50,000
  16685  Anti-corrosion programs..................................1,000
  16690  Utilities..............................................-55,000

                     Eglin AFB BOS Simulation Model

       The conferees recommend that of the funds provided in 
     Operation and Maintenance, Air

[[Page 19969]]

     Force, $1,000,000 shall be made available for the Eglin Air 
     Force Base, Base Operations and Support simulation model.

                Combat Search And Rescue (CSAR) Platform

       The accompanying bill provides that of the funds made 
     available in Operation and Maintenance, Air Force, $2,000,000 
     may be obligated for the deployment of Air Force active duty 
     and Reserve CSAR air crews to the United Kingdom to 
     participate in an Inter-fly program to train, operate, 
     evaluate and exchange operational techniques and procedures 
     on the EH-101. The Air Force has identified mission 
     deficiencies with the current CSAR platform for future 
     requirements, which include mission reaction time, inadequate 
     range, insufficient cabin space, poor survivability, 
     insufficient situational awareness, and inadequate adverse 
     weather capability. Following the Inter-fly program, the 
     Secretary of the Air Force shall report to the congressional 
     defense committees on the suitability of this aircraft as the 
     future CSAR platform.

[[Page 19970]]

     
     


[[Page 19971]]



[[Page 19972]]

                    Adjustments to Budget Activities

       The adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  17050  (TJS--Combating Terrorism Readiness Initiative Fund (Transfer 
    from DERF)...................................................12,000
  17050  (TJS--JCS Exercise Program..............................-5,000
  17100  SOCOM--Hydration on the Move (Camel Bak).................1,000
  17100  SOCOM--SPECWARCOM Mission Support Center.................1,700
Budget Activity 3: Training and Recruiting:
  17400  Classified Programs.....................................-6,869
  17460  DAU--DCMS/IT Organizational Composition Research.........1,000
  17460  DAU--Distance Learning and Performance...................2,975
  17480  DHRA--DLAMP............................................-19,155
  17480  DHRA--JRAP.............................................-24,250
  17480  DHRA--Joint Military Education Venture Forum...............500
Budget Activity 4: Administration and Servicewide Activities:
  17750  Civil Military Program--Innovative Readiness Training....8,500
  17750  Civil Military Program--Challenge Program................1,250
  17775  Classified Programs....................................385,072
  17850  DFAS--Financial Operations (Transfer from DERF)..........5,900
  17875  DHRA--Critical Infrastructure Protection (Transfer from DER500
  17875  DHRA--Civilian Personnel Data System...................-20,000
  17900  DISA--Secure Voice Teleconferencing System (Transfer from 
    DERF).........................................................2,500
  17900  DISA--Defense Conferencing Enhancement Program (Transfer from 
    DERF).........................................................8,900
  17900  DISA--DISA Continuity of Operations (Transfer from DERF).2,500
  17900  DISA--Bandwidth Expansion (Transfer from DERF)...........7,600
  17900  DISA--IA, Intell/Coalition Encrp (CWAN) (Transfer from DE5,000
  17900  DISA--IA, Intell/Coalition Encrp (CFBL) (Transfer from DE1,600
  17900  DISA--IA Computer Network Defense (Transfer from DERF)...3,500
  17900  DISA--On-site administrators for primary sites (Transfer from 
    DERF).........................................................3,000
  17900  DISA--White House Communications (Transfer from DERF)....3,000
  17900  DISA--Wireless Priority Service Program................-73,000
  17900  DISA--Travel Program Growth.............................-1,000
  17900  DISA--CWIN Contract Savings.............................-1,000
  17900  DISA--DISA Tier One and DERF Reductions................-10,000
  17925  DLA--Critical Infrastructure Protection (Transfer from DERF600
  17925  DLA--Information Technology Network Consolidation......-10,000
  17925  DLA--PTAP................................................3,500
  17975  DODEA--Enhanced Force Protection (Transfer from DERF)...24,200
  17975  DODEA--GAVRT Project Expansion...........................2,550
  17975  DODEA--Lewis Center for Educational Research.............3,440
  17975  DODEA--Family Support Services...........................2,500
  17975  DODEA--UNI Math Teacher Leadership.......................1,000
  17975  DODEA--Galena IDEA.......................................4,250
  18000  DSCA--Program Growth....................................-2,000
  18050  DSS--Critical Infrastructure Protection (Transfer from DERF500
  18075  DTRA--Chemical & Biological Defense Capabilities Assessme1,000
  18075  DTRA--Unconventional Nuclear Threat.....................34,000
  18100  OEA--George AFB..........................................2,125
  18100  OEA--Norton AFB..........................................2,550
  18100  OEA--Bayonne Military Ocean Terminal.....................2,500
  18100  OEA--Philadelphia Naval Business Center..................3,500
  18100  OEA--Cecil Field.........................................2,500
  18100  OEA--Charles Melvin Price Support Center.................1,000
  18100  OEA--East Bay Conversion and Reinvestment Commission Pilo1,000
  18100  OEA--CCAT................................................2,000
  18100  OEA--Hunters Point NSY...................................1,400
  18100  OEA--Relocate Barrow Landfill............................4,000
  18100  OEA--Fitzsimmons Army Hospital...........................6,000
  18100  OEA--Port of Anchorage Intermodal Marine Facility Program5,000
  18100  OEA--Security Lighting for Platt Bridge....................600
  18100  OEA--Commonwealth of Pennsylvania--Reimbursement of 
    extraordinary Quecreek Mine disaster rescue/recovery expenses.2,000
  18125  OSD--OSD Continuity of Operations (COOP) (Transfer from 18,000
  18125  OSD--NCR COOP (Transfer from DERF)......................10,500
  18125  OSD--NICP Reserve Support (Transfer from DERF)...........4,000
  18125  OSD--Hard and Deeply Buried Targets (Transfer from DERF).3,050
  18125  OSD--CIP--Biological Agent Security (Transfer from DERF).2,000
  18125  OSD--CIP--Nuclear Security Command and Control (Transfer from 
    DERF)...........................................................400
  18125  OSD--CIP Technology & Consequence Management (Transfer from 
    DERF).........................................................6,600
  18125  OSD--Information Operations (Transfer from DERF).........1,500
  18125  OSD--Horizontal Fusion Analysis (Transfer from DERF).....2,000
  18125  OSD--CENTRIX (Transfer from DERF).......................14,000
  18125  OSD--Classified (Transfer from DERF).....................9,500
  18125  OSD--Classified Programs (Change to DERF)...............52,600
  18125  OSD--Program Growth....................................-17,000
  18125  OSD--Management Headquarters...........................-11,600
  18125  OSD--Information Technology Network Consolidation......-10,000
  18125  OSD--Legacy--CSS Alabama...................................600
  18125  OSD--Middle East Regional Security Issues Program........1,500
  18125  OSD--ADUSD (MPP&R) Wearable Computers--Existing Program..3,400
  18125  OSD--Commercial Technologies for Maintenance Activities (5,750
  18125  OSD--Clara Barton Center.................................3,000
  18125  OSD--Pacific Command Regional Initiative.................5,100
  18125  OSD--National Dedicated Fiber Optic Network Feasibility S1,250
  18125  OSD--Studies and Analysis, SECDEF Study Fund............-1,200
  18125  OSD--PA&E Long Range Planning...........................-5,300
  18125  OSD--Logistics Systems Modernization....................-2,000
  18125  OSD--C31 Mission Analysis Fund..........................-4,894
  18125  OSD--Intelligence Fusion Study continuation..............4,250
  18125  OSD--Command Information Superior Architectures..........2,800
  18150  SOCOM--Combat Development Activities (Transfer to DERF)..7,000
  18150  SOCOM--Combat Development Activities--Classified (Change to 
    DERF)........................................................16,000
  18200  TJS--Critical Infrastructure Protection (Transfer from DERF300

[[Page 19973]]

  18200  TJS--CINC for Homeland Security (Transfer from DERF)....41,000
  18200  TJS--Other Combating Terrorism Initiatives (Transfer from 
    DERF).........................................................1,459
  18200  TJS--Vulnerability Assessments, AT/FP requirements (Transfer 
    from DERF)......................................................400
  18200  TJS--Program Growth....................................-12,000
  18200  TJS--Counter Terrorism Analysis Method for Adaptive Threa1,000
  18200  TJS--NDU XXI.............................................3,400
  18225  WHS--Classified Program (Transfer from DERF)............28,000
  18225  WHS--Information Technology Network Consolidation......-10,000
Undistributed:
  19000  Legacy...................................................8,400
  19010  Impact Aid..............................................30,000
  19015  Impact Aid for Children with Disabilities................3,000
  19210  FECA Reduction..........................................-6,455
  19220  Un-obligated Balance...................................-25,000
  19245  Operation Walking Shield.................................3,500
  19250  NIMA Commercial Imagery.................................15,000

                                 Legacy

       The conference agreement provides $8,400,000 for 
     continuation of the Legacy program. From within these funds, 
     the conferees direct the Department to continue naval 
     archaeology programs in the Lake Champlain basin. Of equal 
     importance to the conferees are the reclamation of the C.S.S. 
     Alabama, the recovery and preservation of the U.S.S. Monitor, 
     the U.S.S. Constitution Museum, the Graveyard of the Atlantic 
     Museum, the U.S.S. Massachusetts and other naval vessels of 
     Battleship Cove, the preservation of the cruiser Olympia of 
     the Independence Seaport Museum, the preservation of the LST 
     325 in the Port of Mobile and restoration of the Lincoln 
     Cottage of the Armed Forces Retirement Home. The 
     Undersecretary of Defense (Comptroller) shall report to the 
     Appropriations Committees no later than March 15, 2003, on 
     the allocation of Legacy funding, and the status of the 
     projects named above.

                    Motor Vehicle Safety Initiatives

       The conferees are aware of Department of Defense data 
     showing that the leading cause of death and serious injury 
     for all military personnel is motor vehicle crashes as 
     opposed to training accidents or combat. Between fiscal year 
     2001 and the first 10 months of fiscal year 2002, Department 
     of Defense data show fatalities among military personnel in 
     motor vehicle crashes have increased by 35 percent--from 191 
     to 258. Fiscal year 2002 would appear to be the highest motor 
     vehicle fatality rate for military personnel in at least four 
     years, with the Marine Corps experiencing an especially high 
     death rate compared to the other services. The Marine Corps 
     reports that of the 25 Marines killed in motor vehicle 
     crashes in fiscal year 2001 and 46 killed in fiscal year 
     2002, well over half were not wearing seat belts. During the 
     Thanksgiving holiday period, law enforcement officials across 
     the nation will conduct special seat belt enforcement 
     activities as part of the U.S. Department of Transportation 
     Click It Or Ticket program. The conferees strongly encourage 
     the Secretary of Defense to direct all services to join the 
     Marine Corps in actively participating in this program and 
     other similar seat belt usage efforts throughout the year. 
     The Secretary is directed to submit a report to the 
     congressional defense committees within 90 days of enactment 
     of this Act summarizing personal motor vehicle safety 
     statistics of each service for the last five fiscal years and 
     outlining the plans of each service to increase efforts to 
     reduce the level of deaths and injuries suffered by its 
     personnel from motor vehicle accidents.

                                 DLAMP

       The conferees remain concerned about the focus and 
     management of the Defense Leadership and Management Program 
     (DLAMP). Though during fiscal year 2002 DLAMP restructured, 
     the outcome of the restructure is unclear and the full costs 
     of the program are poorly defined. The Department needs to 
     ensure that the restructured program is more mission-
     oriented, focused, efficient, and effective. Additionally, 
     the conferees direct that any reductions to this program 
     cannot be applied to the leased facility in Southbridge, 
     Massachusetts.

                                STARBASE

       The conferees are aware of the high demand and strong 
     support for the STARBASE civil-military program that has 
     reached over 200,000 youths and their families at 39 
     locations. The conferees urge the Department to strengthen 
     its management of this program in line with the 
     recommendations made in the STARBASE program annual report. 
     The conferees direct the Secretary of Defense to provide a 
     report to the congressional defense committees by no later 
     than March 1, 2003 summarizing the status of implementing 
     program improvements in the areas of systematic assessment, 
     core curriculum, host service component regulations, STARBASE 
     resource/training center, startup program standardization, 
     and quality control.

[[Page 19974]]

     
     


[[Page 19975]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  19530  Division Forces/ECWCS....................................2,800
  19640  Forces Readiness Operations Support/Controlled Humidity 
    Preservation..................................................2,000
  19650  Land Forces System Readiness/Homeland Security DERF Transfer--
    Enhanced Secure Communications................................5,900
  19650  Land Forces System Readiness/Homeland Security DERF Transfer--
    Enhanced Secure Communications...............................25,600
  19650  Land Forces System Readiness/Information Operations 
    Sustainment...................................................1,500
  19680  Base Support/CT-FP DERF Transfer--Access Control Program20,000
  19680  Base Support/Homeland Security DERF Transfer--Enhanced Secure 
    Communications...............................................30,700
  19680  Base Support/Salute our Services Pilot Project.............170
Budget Activity 4: Administration and Servicewide Activities:
  19980  Administration/Headquarters Program Growth..............-5,000
  19990  Servicewide Communications/Homeland Security DERF Transfer--
    Enhanced Secure Communications................................2,400
Other Adjustments:
  20160  Additional Military Technicians..........................4,000

                       Secure Wireless Technology

       The conferees recommend that of the funds requested in the 
     Defense Emergency Response Fund and transferred to Operation 
     and Maintenance, Army Reserve, for enhanced secure 
     communications, $4,500,000 may be available to increase the 
     availability of current generation NSA-approved secure 
     nationwide digital cell phones to meet urgent service needs. 
     Furthermore, the conferees believe that significant 
     development opportunities have arisen in this area since the 
     submission of the budget request. An accelerated research and 
     development investment strategy could realize advancements 
     that would greatly benefit all defense community users of 
     this technology. The conferees direct the Department to 
     consider accelerating the National Security Agency's 
     continued development of secure cellular wireless technology 
     and multi-band functionality. To accomplish this the 
     conferees would be supportive of a reprogramming of 
     $10,000,000 to support development of a more robust secure 
     nationwide cellular capability with multi-band functionality.

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[[Page 19985]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  26180  Divisions/ECWCS..........................................4,200
  26180  Divisions/Homeland Security Training, Camp Gruber........2,900
  26200  Corps Combat Forces/Unjustified Growth for Other Purchas-3,000
  26360  Azure Blue Cannon Bore Cleaning System...................1,000
  26420  Base Operations Support/Homeland Security DERF Transfer--Long-
    Haul Communications..........................................86,200
  26420  Base Operations Support/Homeland Security DERF Transfer--
    General Communications.......................................48,500
  26440  Facilities Sustainment, Restoration and Modernization/1st Bn, 
    118th Infantry Brigade Rifle Range............................3,000
  26480  Miscellaneous Activities/Distributed Battle Simulation Program 
    Support.........................................................895
Budget Activity 4: Administration and Servicewide Activities:
  26680  Information Management/Interoperable Automation Continuity of 
    Operations....................................................1,000
  26680  Information Management/Information Operations............4,200
Other Adjustments:
  26820  Angel Gate Academy.......................................2,500
  26830  National Emergency and Disaster Information Center.......2,600
  26840  Emergency Spill Response...................................500
  26850  Distributed Learning Project............................30,000
  26890  Joint Training and Experimentation Program...............3,400
  26940  Rural Access to Broadband Technology.....................2,100
  26960  Additional Military Technicians.........................11,300
  26970  National Guard Global Education Project....................500
  26980  All Terrain Military Utility Vehicle.....................2,170
  26990  Northeast Center for Homeland Security Feasibility Study.1,000
  27000  Courseware to Educate IT Managers........................1,700
  27010  Information Assurance....................................1,275
  27030  WMD Response Element Advanced Laboratory Integrated Training 
    and Indoctrination............................................1,700
  27050  Cold Weather Clothing......................................300
  27057  Southeast Regional Terrorism Training....................1,200
  27070  Communicator Emergency Notification Center...............1,000

                         Information Assurance

       The conferees recommend $1,275,000 for information 
     assurance only for a local community education agency in a 
     collaborative information effort with the Software 
     Engineering Institute.

                 Secure Wireless Technology Capability

       The conferees remain concerned that the Army National Guard 
     lacks a near-term capability or plan to ensure a secure 
     cellular phone capability for use in the event of a domestic 
     emergency. Accordingly, the conferees direct the Director of 
     the Army National Guard to report to the congressional 
     defense committees within 30 days of enactment of this 
     legislation on its plans to achieve that objective and would 
     be supportive of a reprogramming to increase this capability.

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[[Page 19987]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  27650  Aircraft Operations/ECWCS................................2,800
  27800  Facilities, Sustainment, Restoration and Modernization/CT-FP 
    DERF Transfer--Facility Upgrades.............................38,015
  27800  Facilities, Sustainment, Restoration and Modernization/Key 
    Field Facility Renovation.....................................1,000
  27850  Depot Maintenance........................................2,500
Budget Activity 4: Administration and Servicewide Activities:
  28050  Administration/Information Operations....................3,500
Other Adjustments:
  28160  National Guard State Partnership Program.................1,000
  28170  Project Alert............................................1,375
  28215  Defense Support Evaluation Group.........................2,800
  28250  Surveying Training Systems...............................1,000
  28260  Instrument Landing System at Rickenbacker ANG Base.........500
  28270  Cold Weather Clothing......................................300
  28280  Medical Equipment..........................................350

             Overseas Contingency Operations Transfer Fund

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

          United States Court of Appeals for the Armed Forces

       The conference agreement provides $9,614,000 for the United 
     States Court of Appeals for the Armed Forces.

                    Environmental Restoration, Army

       The conference agreement provides $395,900,000 for 
     Environmental Restoration, Army.

                    Environmental Restoration, Navy

       The conference agreement provides $256,948,000 for 
     Environmental Restoration, Navy.

                  Environmental Restoration, Air Force

       The conference agreement provides $389,773,000 for 
     Environmental Restoration, Air Force.

                Environmental Restoration, Defense-Wide

       The conference agreement provides $23,489,000 for 
     Environmental Restoration, Defense-Wide.

         Environmental Restoration, Formerly Used Defense Sites

       The conference agreement provides $246,102,000 for 
     Environmental Restoration, Formerly Used Defense Sites, 
     instead of $212,102,000 as proposed by the House and 
     $252,102,000 as proposed by the Senate.

             Overseas Humanitarian, Disaster, and Civic Aid

       The conference agreement provides $58,400,000 for Overseas 
     Humanitarian, Disaster, and Civic Aid.

                  Former Soviet Union Threat Reduction

       The conference agreement provides $416,700,000 for the 
     Former Soviet Union Threat Reduction program.

        Support for International Sporting Competitions, Defense

       The conference agreement provides $19,000,000 for the 
     Support for International Sporting Competitions, Defense 
     account.

                    Defense Emergency Response Fund

       The conference agreement provides amounts approved for 
     those items requested in the Defense Emergency Response Fund 
     in the appropriation accounts and line items identified by 
     the Department.

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[[Page 19989]]

                    Procurement of Security Vehicles

       The conferees are concerned about the justification 
     provided for the procurement of physical security vehicles. 
     The services' budget requests provide little explanation for 
     the number of vehicles requested or the fluctuation in costs 
     from one year to the next. In fact, the current budget 
     request presents a disparity in costs by service ranging from 
     $180,000 to $250,000 per physical security vehicle. The 
     conferees believe that a better presentation of the request 
     for procurement of these vehicles is necessary. Accordingly, 
     the conferees direct the Under Secretary of Defense 
     (Comptroller) to be the central coordinator of all budget 
     justification material for physical security vehicle 
     procurement. The Under Secretary shall submit to the 
     congressional defense committees a separate consolidated 
     justification that clearly explains each service's 
     requirement and the maximum purchase cost authority 
     requested.

               National Imagery and Mapping Agency (NIMA)


                        NFIP/JMIP CONSOLIDATION

       The House included language directing that all NIMA funding 
     be consolidated within the National Foreign Intelligence 
     Program (NFIP) account. The Senate did not include such 
     language. In response to the House direction, the Secretary 
     of Defense stated that he is working with the Director of 
     Central Intelligence (DCI) to determine that most efficient 
     resource strategy for NIMA and is committed to revising the 
     NIMA budget appropriately in the fiscal year 2004 President's 
     Budget Request. The conferees appreciate the commitment of 
     the Secretary of Defense on this matter, and on the basis of 
     this commitment, the House recedes.


                       SUPPORT TO SMALL BUSINESS

       The conferees recognize the importance of small business to 
     the Department's procurement chain. In order to effectively 
     compete in federal procurement processes, small businesses 
     require proficiency in electronic commerce and electronic 
     business practices. As such, the conferees recommend the 
     Department seek innovative methods for providing support to 
     small business supply providers in these areas and full 
     funding of the Supply Chain Management program.

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                      UH-60 Blackhawk Helicopters

       The conference agreement includes $269,916,000 to procure 
     19 UH-60 Blackhawk helicopters. This is an increase of 
     $116,555,000, providing for an additional seven aircraft. Of 
     the additional aircraft in the conference agreement, two UH-
     60L aircraft are available only for the Army Reserve as 
     described in House Report 107-532. Of the additional 
     aircraft, three shall be HH-60L Medical Evacuation (MEDEVAC) 
     models available only for units of the Army National Guard, 
     and two aircraft shall be UH-60L models available only for 
     units of the Army National Guard.

                  CH-47F Upgrade Program Restructuring

       The conferees agree to provide an additional $39,100,000 to 
     facilitate the restructuring of the CH-47F Chinook helicopter 
     upgrade program. Given the critical importance of this 
     improved helicopter to the Army's Objective Force, these 
     funds should be used to facilitate a program restructuring in 
     order to upgrade the full fleet of helicopters (which is 
     currently 465) at the most efficient economic rate, which the 
     conferees believe is between 36 and 48 helicopters per year. 
     The Army is directed to ensure that out-year budgetary and 
     program plans are implemented to meet 100 percent of the 
     Army's CH-47F Objective Force helicopter requirement by no 
     later than 2016.

                                 ATIRCM

       The conferees agree not to rescind $3,000,000 for ATIRCM as 
     recommended by the House. These funds should have been 
     reprogrammed to USSOCOM when responsibility for this program 
     was moved to USSOCOM. The conferees direct the Army to 
     expeditiously submit a reprogramming to the Congress in order 
     to properly realign these funds to Procurement, Defense-Wide.

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                        Continuity of Operations

       The budget request included $215,000,000 in funding under 
     the Defense Emergency Response Fund for activities associated 
     with upgrades and improvements to alternate relocation sites. 
     The conferees have provided $120,000,000 for these 
     activities. The conferees note that the Army, which is the 
     executive agent, has provided little justification for these 
     funds, no plan for their execution, has not coordinated 
     military construction requirements at the sites, and has not 
     demonstrated a commitment to support funding for these 
     activities in subsequent years. For these reasons, the 
     conferees direct that none of the funds provided for 
     alternate relocation sites may be obligated until 30 days 
     after the Secretary of the Army provides a report to the 
     congressional defense committees which provides, in detail, 
     the proposed use of funding, a timeline for execution, a 
     review of necessary improvements to infrastructure, and a 
     plan for funding in subsequent years.

                      Stryker Brigade Combat Teams

       In order to enhance the Army's transformation initiatives, 
     the conferees provide an additional $59,500,000 for fielding 
     of the Stryker Brigade Combat Teams (SBAT). Of this amount, 
     $42,500,000 is provided in the ``Operation and Maintenance, 
     Army'' appropriation and $17,000,000 in the ``Other 
     Procurement, Army'' appropriation. The conferees direct that 
     the additional operation and maintenance funding be made 
     available to the Army Materiel Command Transformation Support 
     Office, specifically to support the fielding of the six 
     brigade teams.

                               Generators

       The conference agreement provides $79,180,000, as provided 
     in the budget request, for generators and associated 
     equipment. Of this amount, the conferees direct that no less 
     than $2,400,000 shall be available only for the procurement 
     of 2kW Military Tactical Generators, as proposed in the 
     budget request.

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                 CVN-77 Integrated Warfare System (IWS)

       The conferees agree to provide $90,000,000 for the CVN-77 
     Integrated Warfare System (IWS) instead of $250,000,000 as 
     proposed by the House and no funding as proposed by the 
     Senate. The conferees do not agree to the House restriction 
     on the obligation of funds for the CVN-77 IWS contract data 
     package.
       It is the sense of the conferees that every opportunity 
     should be taken to include potentially transformational 
     technologies on the CVN-77 as it is being constructed. This 
     will not only provide enhanced warfighting and defensive 
     capabilities in the near-term, but also lay a cornerstone for 
     risk and cost reduction on the CVN(X) program which is also 
     strongly supported by the conferees.
       To that end, the conferees direct that the additional funds 
     provided are only for transformational technologies and 
     initiatives for other CVN-77 IWS to include: (1) design and 
     development of a common flexible island, (2) full service 
     integrated networks to include data, voice, sensor, and HM&E 
     monitoring and control, (3) multi-modal display workstation 
     concepts using middleware and open system architectures, and 
     (4) integrated advanced strike and mission planning 
     capabilities for both the ship and embarked airwings.
       The conferees also direct the Assistant Secretary of the 
     Navy for Research, Development, and Acquisition to provide, 
     no later than March 15, 2003, a revised program acquisition 
     strategy for the CVN-77 which incorporates these 
     transformational initiatives and establishes a foundation for 
     regular technology refresh and product improvements during 
     the life cycle of the ship.

                           Ropeless Elevator

       The conferees understand the Department of the Navy is 
     working on design concepts for ropeless elevator systems in 
     aircraft carriers. The conferees support this effort and 
     encourages the Navy to continue this development in future 
     defense budgets.

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                                  F-22

       The conferees agree with the language in the House and 
     Senate reports regarding the F-22 program. In addition, the 
     conferees agree, with some modification, to a general 
     provision included in the House bill related to the F-22 
     testing program. Finally, of the amounts provided for the F-
     22, the conferees designate $207,000,000, requested for the 
     producibility improvement program, as a special interest 
     item. If the Air Force believes it is necessary to use these 
     funds for an alternative purpose, the Department must submit 
     a prior approval reprogramming.

                             C-17 Aircraft

       In the Department of Defense's fiscal year 2003 budget 
     submission, the Air Force did not request a sufficient amount 
     to fully fund the purchase of 15 C-17 cargo aircraft per 
     year. Instead, it requested only the amount of funds it 
     expected to obligate each year to start production of 15 
     aircraft, and financed the remaining costs in later years. 
     This financing scheme runs counter to the ``full funding'' 
     principles which guide Federal government procurement 
     practice, and thereby creates a future liability for the Air 
     Force and Congress. For this reason, the conferees disapprove 
     the Air Force's C-17 financing proposal. As such, the 
     conference agreement includes an increase of $585,900,000 
     over the budget request to fully fund the purchase of 15 C-17 
     aircraft in fiscal year 2003. Additionally, the conferees 
     agree to retain House language which directs that funds made 
     available within the ``Aircraft Procurement, Air Force'' 
     account be used for advance procurement of 15 aircraft.

                               NATO AWACS

       Not later than 60 days after the enactment of this Act, the 
     Commander in Chief of the United States European Command 
     shall submit a plan to the congressional defense committees 
     that provides for the refurbishment and re-engining of the 
     NATO AWACS aircraft fleet. This report should reflect the 
     significant contribution made by the NATO AWACS fleet in 
     response to the attack on the United States on September 11, 
     2001, and the invocation of Article V of the North Atlantic 
     Treaty. The plan shall also describe any necessary memorandum 
     of agreement between the United States and NATO for the 
     refurbishment and re-engining of these aircraft.

   Application of Berry Amendment to Multi-Year Aircraft Lease Pilot 
                                Program

       Due to the special circumstances surrounding the Multi-Year 
     Aircraft Lease Pilot Program authorized in fiscal year 2002, 
     Congress enacted Section 308 of P.L. 107-206 to clarify Berry 
     Amendment restrictions on the use of foreign sourced 
     specialty metals in commercial aircraft to be leased under 
     this program. In this case, the Congress concurred with views 
     expressed by Air Force officials that the unique financial 
     and time-sensitive requirements of the aircraft lease 
     arrangements and the administrative complexity involved in 
     making Berry Amendment determinations on a plane-by-plane 
     basis for over 100 aircraft built under commercial practices 
     instead of under military acquisition procedures would add so 
     much cost and delay that the entire program would be 
     undermined. Enactment of Section 308 was intended to provide 
     the opportunity to ensure that the Air Force would be able to 
     economically procure air refueling tanker replacement 
     aircraft necessary to the national security while maintaining 
     the overall integrity of the Berry Amendment for future 
     application.
       The conferees note the assertion expressed by some industry 
     officials that if the aircraft manufacturer for this lease 
     program were allowed to calculate Berry Amendment 
     requirements on a system-level basis for the entire fleet of 
     aircraft, it could demonstrate that these aircraft contain a 
     very high percentage content of domestically produced 
     specialty metals such as titanium. The conferees believe this 
     data could be useful in future deliberations about this 
     program. The Secretary of the Air Force is therefore directed 
     to provide the congressional defense committees with 
     estimates of the amount, value, and overall percentage of 
     foreign and domestic-sourced specialty metals (under the 
     definitions of the Berry Amendment) to be used in the fleet 
     of leased aircraft under this program and how this compares 
     to the specialty metal content of military aircraft that have 
     been procured by the Air Force over the last five years. The 
     Secretary shall use such methodology as he determines will 
     provide the most accurate estimates at a reasonable cost 
     after consultations with the specialty metals and aircraft 
     manufacturing industries. This report shall be submitted to 
     Congress no later than six months after enactment of this 
     Act.

                 Predator Unmanned Aerial Vehicle (UAV)

       The conferees agree to provide an additional $26,000,000 
     for the acquisition of not less than three Predator B 
     turboprop aircraft, including spares. Should the program 
     office determine there are additional costs for aircraft, 
     spares, support equipment, sensors, and prductionization 
     efforts which cannot be accommodated within the amount 
     appropriated, the Air Force should consider submitting to 
     Congress the appropriate reprogramming request to fund these 
     requirements.
       The conferees agree to provide an additional $68,000,000 in 
     transfer from the Defense Emergency Response Fund for the 
     acquisition of Predator A UAVs. This among, when added to the 
     request of $23,068,000, is for the acquisition of 22 air 
     vehicles.

                Defense Airborne Reconnaissance Program

       The conferees agree to reduce funding for the RIVET JOINT 
     Quick Reaction Capability (QRC) by $12,700,000 instead of 
     $15,000,000 as proposed by the House and no reduction as 
     proposed by the Senate.
       The conferees are aware the Air Force preferred to have 
     these funds transferred to a different line in the Aircraft 
     Procurement, Air Force account to fund the same QRC on the 
     COMPASS CALL platform. The conferees agree that should the 
     Air Force determine that it wishes to proceed with putting 
     this QRC on the COMPASS CALL aircraft, it should submit a 
     request to reprogram funds and justify the requirement for 
     expanding the program.

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                        miscellaneous equipment

       The conferees agree that the Chiefs of the Reserve and 
     National Guard components could exercise control of 
     modernization funds provided in this account. The conferees 
     further agree that separate submissions of a detailed 
     assessment of its modernization priorities by the component 
     commanders is required to be submitted to the defense 
     committees. The conferees expect the component commanders to 
     give priority consideration to the following items: HMMWV, 
     Family of Medium Tactical Vehicles, Commercial Construction 
     Equipment, AN/TMQ-41A Meteorological Measuring Sets, 
     Bladefold Kits for Apache Helicopters, Combat Arms Training 
     Systems, Firefinder Systems, the National Guard Lightway 
     Project and the Paul Revere Portal, Next Generation Small 
     Loader, Modern Burner unit, APN-21 beacon radar, P4RC+(P5) 
     airborne combat training pods, APN-241 radar, F-16 Re-
     engining, Abrams Full-crew Interactive Skills Trainer, 
     Cockpit Air Bag System, and Deployable Force-on-Force 
     Integrated Range System.

                    Defense Production Act Purchases

       The conferees agree to provide a total of $73,057,000 for 
     the Defense Production Act Purchases, the amount of the 
     budget request.

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                      Magneto Inductive Initiator

       The President's budget request includes $3,000,000 to be 
     used for Engineering and Manufacturing Development of the 
     Magneto Inductive Initiator. The conferees support the rapid 
     fielding of this capability which will allow for U.S. forces 
     to have a remote precision demolition capability that is 
     highly reliable in hardened structures, bunkers, caves, 
     buildings, and in the littoral surf zone. The conferees ask 
     to be kept apprised of the progress of this important 
     program.

                           Solid State Lasers

       There has been substantial technical progress in the 
     ongoing solid state laser development efforts, and the need 
     to continue rapid progress toward developing an Army tactical 
     laser weapons capability for the Objective Force. Therefore, 
     the conferees urge the Army to allocate $11,200,000, as 
     proposed in the fiscal year 2003 budget request, for High 
     Energy Laster Technology to the current Solid State Heat 
     Capacity Laser program.

 Brilliant Anti-Armor Technology (BAT) and BAT P3I Submunition Program

       The conferees agree with the recommendations found in both 
     the House and Senate reports to terminate the BAT program, 
     and accordingly, include a reduction of $145,293,000 to this 
     program. The conference agreement also provides $45,000,000 
     of the funds requested for this program for the purpose of 
     developing and testing a multi-mode seeker technology. In 
     addition, the conferees direct the Army establish a new 
     project code for the seeker development to distinguish this 
     work from the base BAT and BAT P3I programs.

              Loitering Attack Missile Requirements Review

       The conferees direct the Secretary of the Army to submit a 
     report to the congressional defense committees by no later 
     than March 31, 2003, comparing and contrasting the cost, 
     technical risk, schedule risk, and combat capability of 
     replacing the planned Loitering Attack Missile (LAM) with a 
     comparable capability centered on the use of Unmanned Aerial 
     Vehicles (UAV) with a smart seeker munition. This report 
     shall assess whether a UAV with a smart seeker munition can 
     provide equal or better combat capability within the same or 
     a shorter timeframe compared to use of the LAM under the 
     existing Army Objective Force Transformation plan. This 
     report shall also include an analysis of the relative 
     capabilities of each system to discern friend or foe in real 
     time and to limit collateral damage. It shall also assess 
     whether a UAV/smart munition option provides better value and 
     greater overall combat effectiveness to the Army when 
     considering the added potential of combining surveillance and 
     strike capability on the same platform.

            Future Combat System And Intelligent Minefields

       The conferees agree to provide an additional $105,000,000 
     for the Army's next generation warfighting capability, the 
     Future Combat System. The conferees also agree with the 
     Senate's language that encourages the Army to invest part of 
     this additional funding into a development program for a next 
     generation intelligent minefield. The conferees direct that 
     the Army clearly define the requirements for a next 
     generation intelligent minefield and ensure compliance with 
     the Ottawa Treaty, and report back to the House and Senate 
     Appropriations Committee with detailed plans for such a 
     system. The conferees understand that the Army has already 
     begun this process with plans to incorporate the Intelligent 
     Munitions System (IMS) into the Future Combat System. The 
     conferees urge that the Army consider using a portion of this 
     additional funding to begin development of the IMS. Funds for 
     the intelligent minefield may be obligated before the 
     Milestone B decision for the Future Combat System program, 
     for demonstration and validation of technologies as 
     appropriate.

                      Future Testing Requirements

       The conferees agree with the House report language 
     requiring the Secretary of Defense to provide a report on 
     Future Testing Requirements. The Senate did not address this 
     matter. The conferees direct the Secretary of Defense to 
     submit this report to the congressional defense committees 
     not later than May 1, 2003. The report should provide an 
     analysis of the capabilities of the test ranges, including 
     the need for investment in new equipment; the capabilities of 
     current modeling and simulation techniques used in testing 
     and evaluation; recommend a means of using modeling and 
     simulation techniques to make the testing of weapons systems 
     more efficient and effective; and propose a five-year plan of 
     integrated investment for both ranges and modeling and 
     simulation techniques.

                    Non-Line Of Sight (NLOS) Cannon

       The conferees agree to align the funding proposed in the 
     Crusader budget amendment of the Non-Line of Sight (NLOS) 
     Cannon to the Artillery Systems-Demonstration/Validation 
     program to ensure that the experienced Army staff who were 
     developing the Crusader will lead the effort to migrate these 
     technologies, and to develop the NLOS cannon. The conferees, 
     therefore, have included a total of $368,500,000, for the 
     Non-Line of Sight Cannon and Resupply Vehicle Program in 
     Artillery Systems Demonstration/Validation, to develop a Non-
     Line of Sight Cannon. This amount is an increase of 
     $173,000,000 above the President's budget request. The 
     conferees direct that this additional funding be used to 
     integrate cannon technologies with a suitable platform and 
     munitions to ensure that this NLOS Cannon can be delivered in 
     the 2008 timeframe. Finally, the conferees direct the NLOS 
     Cannon program office to closely coordinate its program with 
     the Army's Future Combat Systems program office.

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[[Page 20104]]

              Combat Support Hospital-Mobile Surgical Unit

       The conferees understand that the Army is working to 
     develop a replacement system to the deployable medical 
     hospital. Accordingly, $2,500,000 is provided to the U.S. 
     Army Medical Research and Materiel Command, Ft. Detrick, MD, 
     to prototype a 44-bed Combat Support Hospital consistent with 
     the concept design of the U.S. Army Medical Center and 
     School's ICT report on the Future Medical Support System.

             M934 Mortar--Low Cost Course Correction Module

       The conferees are aware of recently concluded tests 
     sponsored by Army PM-Mortar which support further 
     demonstration and evaluation of the Low Cost Course 
     Correction (LCCC) module for the M934 Mortar. The conferees 
     also note the positive performance of the LCCC module as 
     reported by the Army and encourage the Secretary of the Army 
     to address future funding requirements for the LCCC module 
     and future testing requirements.

                Army Assault Rifle Early Transformation

       The conferees are aware of significant Army progress in 
     developing the XM-8 assault rifle as a stand-alone module of 
     the XM-29 assault weapon program. The XM-8 appears to offer 
     significant improvements over the current M-4 assault rifle 
     and may be worthy of fielding on an expedited basis. The 
     conferees direct the Secretary of the Army to review the 
     costs, benefits and feasibility of accelerating replacement 
     of the M-4 with the XM-8. The Secretary shall submit a report 
     to the congressional defense committees by no later than 
     April 1, 2003, comparing and contrasting the cost, weapon 
     performance/capabilities, technical risk, schedule risk, and 
     improvements in overall combat capability of fielding the XM-
     8 assault rifle module of the XM-29 assault weapon under an 
     initial block development approach compared to the current 
     fielding plan. This report shall specifically assess the 
     benefits of an early block development fielding of the XM-8 
     in providing equal or better combat capability in a shorter 
     timeframe, and the overall benefits to soldier effectiveness 
     and survivability, compared to waiting for final development 
     of the XM-29 under the existing Army Objective Force 
     Transformation Plan.

                        Pseudofolliculitis Barbe

       The Conferees agree that Pseudofolliculitis Barbe (PFB) is 
     a serious condition that impacts many African American 
     military personnel and deserves additional attention. The 
     conferees strongly encourage the Department of Defense to act 
     quickly on a plan of action to initiate research into more 
     effective treatments and control of this problem.

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                                FORCEnet

       The conferees agree to provide an appropriation of 
     $13,000,000 for the Navy's FORCEnet program instead of 
     $20,000,000 as proposed by the House and no appropriation as 
     proposed by the Senate.
       Despite the conferees interest in the goals of FORCEnet, a 
     program the Chief of Naval Operations considers a key 
     transformation enabler for the 21st Century Navy, concerns 
     remain about the lack of specificity and documentation 
     provided thus far by the Navy. While a solid organizational 
     structure for the development of FORCEnet requirements has 
     been established, the Navy must now refine the program's plan 
     and scope. To ensure continued oversight of this important 
     program, the conferees direct that the Secretary of the Navy 
     submit, by May 1, 2003, a detailed report on the FORCEnet 
     program. At a minimum, the report shall identify the five-
     year estimated cost of the program, describe the long term 
     and short term program objectives, define requirements, 
     detail the spiral development and testing milestone plan, and 
     indicate how each existing system will be integrated into the 
     FORCEnet approach.

           Joint Strike Fighter--F136 Interchangeable Engine

       The conferees have included an additional $29,750,000 for 
     the Joint Strike Fighter Interchangeable Engine Program only 
     to continue the current effort to develop and maintain two, 
     competing, interchangeable engine programs for the Joint 
     Strike Fighter.

                        Unmanned Aerial Vehicles

       The conferees agree to provide a total of $262,459,000 for 
     the Navy's tactical unmanned aerial vehicles program.
       Broad Area Maritime Surveillance (BAMS): The conferees 
     agree to provide an additional $42,300,000 for the Navy BAMS 
     UAV. Of this amount, $28,300,000 is a transfer from the 
     Defense Emergency Response Fund and shall only be used for 
     the projects and activities as described in justification 
     material submitted by the Navy and detailed in House Report 
     107-532; $7,000,000 is to determine the requirement for 
     utilizing existing infrastructure resident in the Tactical 
     Support Centers (TSCs) at P-3/EP-3 bases for hosting the BAMS 
     mission planning and control and to initiate equipment 
     upgrades as necessary; and $7,000,000 is for Global Hawk 
     HAEUAV producibility initiatives such as tooling enhancements 
     and improvements and special test equipment, an effort which 
     the Navy shall coordinate with the Air Force.
       The conferees believe the Navy should initiate a technology 
     program to improve maritime ISR, including space-time 
     processing algorithms from electro-optical data.
       The conferees agree with the reporting requirements 
     contained in House Report 107-532 with respect to the BAMS 
     UAV.
       VTOL UAV Operational Testing: The conferees agree to reduce 
     by $4,000,000 the Navy's request for operational testing of 
     the Vertical Take Off and Landing UAV instead of $9,000,000 
     as proposed by the House. This reduction is taken without 
     prejudice and may be applied as a general reduction to the 
     program.
       USMC Pioneer upgrades: The conferees agree to provide a 
     total of $16,000,000 for upgrades to the Pioneer UAV used in 
     support of the Marine Corps; $7,000,000 is provided in the 
     Research, Development, Test and Evaluation, Navy 
     appropriation and $9,000,000 is provided in the Weapons 
     Procurement, Navy appropriation. The conferees direct that 
     these funds, and any additional funds as required, shall be 
     used only to upgrade the Pioneer UAV in support of the Marine 
     Corps.
       VTOL UAV Rescission: The conferees agree not to rescind 
     $2,000,000 from the $5,000,000 appropriated to the Research, 
     Development, Test and Evaluation, Navy account in fiscal year 
     2002 as proposed by the House. The conferees agree that these 
     funds are excess to the requirement for which originally 
     appropriated and therefore direct that these funds instead be 
     used by the Navy to establish a Joint Program Office with the 
     Air Force for the Predator B and Global Hawk UAVs. To the 
     extent that there may be similar vehicle and sensor 
     requirements for the Navy and the Air Force, the Joint 
     Program Office could facilitate the development of 
     requirements, program management, acquisition support, 
     testing and training.
       Joint Operational Test Bed (JOTBS): The conferees further 
     agree to provide an additional $4,100,000 for the Joint 
     Operational Test Bed System (JOTBS) project. The conferees 
     further agree to the language contained in House Report 107-
     532 with respect to designation of the Deputy Chief of Naval 
     Operations for Warfare Requirements and Programs (N7/N78), as 
     the program sponsor. The conferees direct the Navy to 
     evaluate the JOTBS prototype to determine if the system 
     adequately addresses Service requirements and if so initiate 
     the development of the necessary documentation of 
     requirements.

                          Naval Fires Network

       The conferees agree to provide an additional $7,5000,000 in 
     the Land Attack Technology program for Naval Fires Network 
     (NFN), of which $2,500,000 is for the tactical dissemination 
     module. The conferees agree that remaining funds shall be 
     used to continue architecture design for NFN, to study and 
     initiate a design for the Joint Fires Center, improve 
     training devices, and support major Fleet exercises.
       The conferees have also provided an additional $1,300,000 
     in the Distributed Common Ground Station line to continue 
     development of an open architecture and sustain modernization 
     and enhancement of precision strike capabilities for NFN.

                Treatment of Radiation Sickness Research

       The conference agreement provides $3.4 million for the 
     establishment of a blood bank for the purpose of treating 
     patients exposed to high doses of radiation. The conferees 
     agree that these funds are to establish a blood bank with an 
     entity that has a demonstrated track record in this specific 
     area.

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                            B-1 DSUP Program

       Despite development problems which have plagued the Air 
     Force's B-1 Defense System Upgrade Program (DSUP), the 
     conferees agree to provide the fiscal year 2003 funding 
     requested for this program. Concerned, however, by the need 
     to continue modernizing the B-1 bomber so the aircraft can 
     undertake combat missions in various threat environments, the 
     conferees direct the Air Force to use these funds to explore 
     alternative towed decoy and defensive systems other than the 
     ALE-55 towed decoy included in the Department of Defense's 
     original request. The Secretary of the Air Force shall report 
     to the congressional defense committees on the allocation of 
     these funds not later than January 1, 2003. Finally, the 
     conferees approve a rescission totaling $45,500,000 of prior 
     year funds in excess to the Air Force's DSUP requirements.

                                  MC2C

       The conference agreement provides a total of $338,089,000 
     for the Multi-sensor Command and Control Constellation (MC2C) 
     program. This level is more than sufficient to fully fund all 
     planned MP-RTIP design and platform adaption activities for 
     the coming year. Given the reported technical difficulties 
     this program recently experienced in initial testing, the 
     conferees strongly urge the Air Force to use any remaining 
     funds for sensor and command and control system integration 
     development efforts.

                       Space Surveillance (MSSS)

       The conference agreement includes funding of $48,472,000 
     for the MSSS program. Of this amount, $13,000,000 shall be 
     used to continue the Panoramic Survey Telescope and Rapid 
     Response System. In addition, $2,000,000 shall be used only 
     to fund the High Accuracy Network Determination System. The 
     conferees are aware of security and electromagnetic 
     interference concerns from antennas located near the site, 
     and recommend allocating up to $5,000,000 for assisting in 
     the relocation of the antennas. The remaining research funds 
     should be allocated by on-site officials to programs which 
     offer the greatest potential return. The conferees expect the 
     officials to consider the following programs for funding: 
     MATRIX, NEAT, and HSN.

                       Advanced Power Technology

       To improve technology transition and the incorporation of 
     advanced power concepts into vehicles and facilities, the 
     conferees direct the Secretary of the Air Force to prepare a 
     plan for establishing an Advanced Power Technology office to 
     support the program manager for support equipment, ground 
     vehicles, and bare base. The plan should be provided to the 
     House and Senate Appropriations Committees with the 
     submission of the Department of Defense fiscal year 2004 
     budget request.

                   Endurance Unmanned Aerial Vehicles

       The conferees agree to provide a total of $352,743,000 for 
     the Air Force's endurance unmanned aerial vehicles program, 
     including an additional $31,000,000 for the continued 
     development and testing of the Global Hawk endurance UAV 
     system and sensor requirements.
       Global Hawk Defensive System: The conferees do not agree to 
     the Budget request for an additional $30,000,000 for the 
     development of a U-2 like defensive system for the Global 
     Hawk UAV.
       Global Hawk SIGINT Sensor Development: The conferees agree 
     to transfer $59,000,000 requested for Global Hawk SIGINT 
     sensor development, and the development efforts these funds 
     were requested to support, into a new line entitled Global 
     Hawk Advanced Payload Development and Support.
       Global Hawk Advanced Payload Development and Support: The 
     conferees agree to provide a total of $84,000,000 in this new 
     line, of which $59,000,000 is a transfer from the SIGINT 
     Sensor Development line, including the High Band Subsystem 
     development effort, and $15,775,000 is a transfer from the 
     Airborne Reconnaissance Systems Sensor Development line. It 
     is the intent of the conferees that the Air Force work with 
     the Navy and the Army to identify new and existing sensor 
     technologies for a high altitude UAV, including a day/night 
     hyperspectral sensor system developed by an Air Force 
     laboratory, and use the funds appropriated to develop, test 
     and demonstrate payload options to enhance Global Hawk UAV 
     mission capabilities. The conferees directed the Air Force to 
     submit by January 15, 2003, a plan for expenditure of these 
     funds.
       The conferees support the Air Force's Airborne Signals 
     Intelligence Payload (ASIP) program, a common high altitude 
     SIGINT sensor based on the ongoing HBSS program and a new low 
     band effort based on existing technology. The ASIP program is 
     the Office of Secretary of Defense approved program designed 
     to replace the failed Joint SIGINT Avionics Family (JSAF) 
     program. The fiscal year 2003 estimated cost for ASIP is 
     $31,400,000, of which $17,900,000 shall be funded from Global 
     Hawk SIGINT sensor development (Advanced Payload Development 
     and Support) and $13,500,000 from funds provided in a 
     separate line for U-2 SIGINT systems. The conferees direct 
     the Navy to evaluate its requirements and participate in the 
     ASIP effort as appropriate.

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                    Chemical and Biological Defense

       The conferees agree to establish a ``Chem-bio Defense 
     Initiatives Fund'' within the Department of Defense's 
     Chemical and Biological Defense program, and provide an 
     increase of $25,000,000 for this purpose. The Secretary of 
     Defense is directed to allocate these funds among the program 
     proposals listed below in a manner which yields the greatest 
     gain in our chem-bio defensive posture. The program proposals 
     to be considered are:
       The National Center for Biodefense;
       Chem-bio Threat Mitigation technologies;
       Global Pathogen Science Portal;
       Advanced Sensors for Chem-bio Agents;
       Rapid Sensitive Biowarfare Protection;
       Diagnostic Tool for Biowarfare;
       Ultra-High Field Instrumentation;
       Urban Security Initiative;
       Chemical Imaging Biothreat Detection;
       Biological Agent Sensor/Detection System;
       Chem-bio Air Filtration System;
       Food Safety and Security Sensors;
       Bioinformatics;
       Phylogenetic- and PCR-based Detector System
       Field Portable Nucleic Acid Bioterrorism Detection;
       LISA-Inspector Transportable Chem-bio Detection System;
       Distributed Chemical Agent Sensing and Transmission;
       Wide-Area Standoff Chem-bio Agent Detection System;
       Air Purification for Protection System;
       Rapid Antibody-based Countermeasures;
       Oral Anthrax Antibiotic;
       Plant Vaccine Development;
       Rapid Response Sensor Networking for Multiple Applications; 
     and
       Chemical Biological Incident Response Force (CBIRF).

                  Anthrax Vaccine Supply Preparedness

       The conferees are concerned about the adequacy of the 
     supply and production capacity for the only FDA-licensed 
     anthrax vaccine currently available in the U.S. to protect 
     our military and civilian defense personnel from the 
     demonstrated and potential future threat of anthrax. The 
     Secretary of Defense is directed to provide a report which 
     assesses the immediate and short-term preparedness and 
     potential future total biowarfare defense need for the FDA-
     licensed anthrax vaccine, the potential need for expanded 
     production capacity to mitigate risks of an event which could 
     result in a halt to current vaccine production. The Secretary 
     shall submit this report to the congressional defense 
     committees within 90 days after enactment of this Act.

                    Chronic Multi-symptom Illnesses

       The conferees have provided $5,200,000 to extend research 
     on chronic multi-symptom illnesses with a special focus on 
     the relationship between Gulf War Illnesses and other 
     diseases, fibromyalgia, chronic fatigue syndrome, and 
     multiple chemical sensitivity. Within this amount up to 
     $2,000,000 may be made available for research in the Upper 
     Great Plains Region.

                      Medical Free Electron Laser

       The conferees agree that the work the universities are 
     doing in conjunction with the Department of Defense to 
     develop the medical free electron laser is vital to address a 
     wide variety of research problems that are important to 
     military personnel and civilian populations. The conferees 
     provide $12,000,000 to continue research within the 
     Department of Defense for this program and expect that these 
     funds, along with any associated outyear funding, be retained 
     within the Department of Defense.

                       Ballistic Missile Defense

       The conferees agree to provide a total of $7,387,856,000 
     for ballistic missile defense research and development and 
     related procurement activities. This reflects a reduction of 
     $14,400,000 from the President's request and transfers to 
     other accounts totaling $28,700,000.
       Last year the conferees provided guidance in the Statement 
     of Managers accompanying the Department of Defense 
     Appropriations Act, 2002 regarding special interest projects, 
     budget justification material and reprogrammings. The 
     conferees agree to sustain that guidance and, unless 
     exceptions to the countrary are provided explicitly, expect 
     the Department to continue abiding by this guidance in the 
     future.

                             Radar Research

       The conferees agree to transfer $22,00,000 from the Missile 
     Defense Agency's sea-based midcourse program to the Navy (PE 
     0604307N) only for the development of Solid State S-Band 
     radar. In addition, the conferees agree that $10,000,000 in 
     sea-based midcourse funds shall be made available for radar 
     development, the exact technology to be decided by the agency 
     after a careful consideration of relevant radar options.

                         Sea-Based X-Band Radar

       Subsequent to submission of the budget for fiscal year 
     2003, the Missile Defense Agency proposed acquisition of a 
     sea-based X-band radar, in lieu of the land based concept 
     previously funded by Congress. At this juncture, the 
     conferees have little insight about the technical and cost 
     feasibility of this initiative, or about the impact of this 
     change on the schedule and test plan for the ground based 
     mid-course segment. On that basis, the conferees direct that 
     none of the funds provided for the ground based mid-course 
     segment program may be obligated to acquire the proposed, 
     foreign built sea-based platform until 30 days after the 
     Director of the Missile Defense Agency provides a report to 
     the congressional defense committees on the cost and schedule 
     impact of this approach, including a comparison to the cost 
     and capability of the previously proposed land based site and 
     the technical criteria used to determine that a sea/based 
     platform will provide effective test and operational 
     performance for the missile defense system.

                     Technology Transition Programs

       The conferees agree to provide $25,430,000 for technology 
     transition efforts, including the Challenge program, the 
     Quick Reaction Special Projects program, and the Technology 
     Transition Initiative. Of this amount, $12,800,000 shall be 
     used only to fund the Challenge program. The remainder shall 
     be allocate between the other listed programs, at the 
     discretion of the Secretary of Defense. The Secretary is 
     directed to provide to the congressional defense committees a 
     report detailing his funding allocation decisions with the 
     submission of the fiscal year 2004 Defense budget request.

          Historically Black Colleges and Universities Science

       The conferees direct the Department of Defense to evaluate 
     the programmatic impact of combining funding and 
     administration for the Historically Black Colleges and 
     Universities Science program, the Hispanic Serving 
     Institutions program, and American Indian Tribal Colleges 
     program under a new program element.
       The Department shall provide a report to the congressional 
     defense committees on the results of this evaluation within 
     120 days of enactment of this legislation.

                     Advanced Semiconductor Devices

       The conferees recommend that the Department of defense 
     conduct a study to examine the long-term DoD acquisition 
     model for advanced semiconductor devices used in military and 
     intelligence applications. This study should address whether 
     a consolidated U.S. semiconductor foundry could offer the 
     U.S. Government a solution to the impending advanced 
     technology procurement challenge. The Department is 
     encouraged to make this study a high priority so that a 
     preliminary assessment can be available by December 2002.

                             Joint Robotics

       Based on reports received from the Department of Defense 
     and U.S. military field commanders, the conferees agree the 
     Department should proceed expeditiously to test, produce, and 
     field technologically mature robots and other unmanned 
     vehicles for use in combat. As such, the conferees recommend 
     a total increase of $24,000,000 for the Joint Robotics 
     program. Further, the conferees strongly encourage the 
     Department to retain oversight of this program under the 
     Office of the Secretary of Defense, given the applicability 
     of robots to numerous joint and combined combat missions.

                   Stratetic Capability Modernization

       The conference agreement includes $20,000,000 to fund the 
     Department of Defense Strategic Capability Modernization 
     program. The Department shall give priority to upgrading 
     command and control systems and related Strategic Command 
     communication systems in the use of these funds.

                    Information Systems Engineering

       The conferees remain interested in the Department of 
     Defense providing a greater focus on its information systems 
     engineering (ISE) effort. This effort is important to 
     enabling the engineering of large-scale information systems 
     for transformation to network-centric operations. Thus, the 
     conferees direct DARPA to continue its efforts to pursue and 
     support ISE research. The conferees urge that the expertise 
     of ICICX and others be used to assist in developing and 
     implementing new management strategies, consistent with the 
     recommendations of the President's Information Technology 
     Advisory Committee.

   Homeland Security Command and Control Advanced Concept Technology 
                             demonstration

       The conferees recommend $3,000,000 for the Homeland 
     Security Command and Control Advanced Concept Technology 
     Demonstration for upgrades to communication and display 
     equipment, and subsequent demonstrations and spiral 
     development at the C2 nodes in Louisiana.

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                TITLE V--REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       The conference agreement provides $1,784,956,000 for 
     Defense Working Capital Funds, instead of $1,832,956,000 as 
     proposed by the House.

                     National Defense Sealift Fund

       The conferees agree to provide $942,629,000 for the 
     National Defense Sealift Fund, an increase of $8,500,000 to 
     the budget request. The conferees also agree that the 
     additional funds provided are only to finance the cost of 
     constructing additional sealift capacity.

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                      DHP Reprogramming Procedures

       The conferees share the concerns expressed in the report 
     accompanying the House version of the Department of Defense 
     Appropriations bill for fiscal year 2003 regarding the 
     diversion 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 
     agree that the Department of Defense shall follow prior 
     approval reprogramming procedures for transfers with a 
     cumulative value in excess of $25,000,000 into the Private 
     Sector Care activity group.
       In addition, the conferees agree that the Department of 
     Defense shall provide budget execution data for all of the 
     Defense Health Program accounts. Such budget execution data 
     shall be provided quarterly to the congressional defense 
     committees through the DD-COMP(M) 1002.

                 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: acellular matrix research 
     for military orthopedic trauma; alcoholism research; 
     amyotrophic lateral sclerosis; and anti-diarrhea supplement; 
     Army nutrition research; augmented care in the chain of 
     stroke survival (ACCESS); blood-related cancer research; 
     bone-related disease research; cell response to anti-cancer 
     agents; Mt. Sinai cancer research program; casualty care 
     research center; chiropractic care; epilepsy; infectious 
     disease tracking system; interstitial cystitis research; low 
     vision research; medical digital assistance; miniature renal 
     assist devices; natural toxin detection technology; 
     neuroscience research; Paget's disease; personal intelligent 
     medical assistant; Providence cancer center; respiratory 
     research; smoking cessation; social work research; and Volume 
     Angio CAT (VAC) research.

            Chemical Agents and Munitions Destruction, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY CHEM                    974,238      974,238      974,238      974,238
 DEMILITARIZATION--O&M......................................
CHEM DEMILITARIZATION--PROC.................................      213,278      213,278      213,278      213,278
CHEM DEMILITARIZATION--RDTE.................................      302,683      302,683      302,683      302,683
                                                             ---------------------------------------------------
      TOTAL, CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY......    1,490,199    1,490,199    1,490,199    1,490,199
----------------------------------------------------------------------------------------------------------------

         Drug Interdiction and Counter-Drug Activities Defense

       The conference agreement includes $881,907,000 for ``Drug 
     Interdiction and Counter-drug Activities, Defense'' as 
     opposed to $859,907,000 as proposed by the House and 
     $916,107,000 as proposed by the Senate. Adjustments to the 
     budget request are as follows:

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                        [In thousands of dollars]
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Recommended Increases:
    SOUTHCOM Reconnaissance UAV         15,100  ...........            0
     Counter-drug Initiative.....
    National Counter-narcotics           1,000  ...........        1,000
     Training Center, Hammer.....
    Indiana National Guard               1,000  ...........        1,000
     Counter-drug Activities.....
    Nevada National Guard CD RAID        2,000  ...........        1,000
     Counter-drug Program........
    Florida National Guard               2,500  ...........        2,100
     Counter-drug Port Initiative
    Southwest Border Fence.......        6,700  ...........        4,700
    Multi-jurisdictional Counter-        5,000  ...........        4,300
     drug Task Force Training....
    Southwest Anti-drug Border           5,000  ...........        4,300
     States Initiative...........
    Tethered Aerostat Radar              4,000  ...........        2,200
     System at Morgan City, LA...
    C-26 Counter-drug Electro            6,200  ...........        5,200
     Optical Sensor Upgrades.....
    Young Marines Program........        1,500        2,500        1,500
    Kentucky National Guard              1,000        3,600        2,600
     Counter-drug Activities.....
    Northeast Counter-drug               8,000        5,000        6,800
     Training Center.............
    Tennessee National Guard             1,000        1,000        1,000
     Counter-drug Activities.....
    National Guard Counter-drug    ...........       35,000       20,000
     Support.....................
    OH-58 RAID EO/IR upgrades;     ...........        4,000        2,400
     ANG.........................
    Alaska National Guard Counter- ...........        3,000        2,700
     drug Program................
    West Virginia National Guard   ...........        3,500        3,000
     Counter-drug Program........
    Regional Counter-drug          ...........        2,000        1,400
     Training Academy,
     Mississippi.................
    Hawaii Counter-drug            ...........        3,000        2,700
     Activities..................
    NGB-Counter-drug Technology    ...........        2,600        1,800
     Consortium..................
    P-3 Counter-drug EO/IR         ...........        2,000        1,000
     Upgrades....................
    Midwest Regional Counter-drug  ...........        5,000        3,500
     Training....................
Recommended Reductions:
    Tethered Aerostat Radar             -5,000       -5,000       -5,000
     System Procurement..........
    DEA Support..................       -1,300  ...........       -1,300
    Transit Zone Maritime Patrol        -9,000  ...........       -4,000
     Aircraft....................
    Riverine Training Deployments       -1,000  ...........       -1,000
    TAC OPS Support..............       -1,800  ...........       -1,000
    T-AGOS.......................      -13,000  ...........      -13,000
    Classified...................      -17,900  ...........      -17,900
------------------------------------------------------------------------

                    Office of the Inspector General

       The conferees agree to provide $157,165,000, as proposed by 
     both the House and Senate, for the Office of the Inspector 
     General. Of this amount $155,165,000 shall be for operation 
     and maintenance, and $2,000,000 shall be for procurement.

                      TITLE VII--RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

       The conferees agree to provide $222,500,000 for CIARDS 
     instead of $212,000,000 as proposed by both the House and 
     Senate.

               Intelligence Community Management Account

       The conferees agree to provide $163,479,000, of which 
     $34,100,000 is for transfer to the Department of Justice, 
     instead of 162,254,000 as proposed by the House and 
     $122,754,000 as proposed by the Senate.

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

       The conference agreement provides $75,000,000 for payment 
     to the Kaho'olawa Island Conveyance, Remediation, and 
     Environmental Restoration Fund, instead of $25,000,000 as 
     proposed by the House and $80,000,000 as proposed by the 
     Senate.

                 National Security Education Trust Fund

       The conferees agree to provide $8,000,000 as proposed by 
     both the House and the Senate.

                     TITLE VII--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 8005) 
     which amends lanaguage providing transfer authority of 
     $2,000,000,000; requires a request for multiple reprogramming 
     to be made prior to May 31, 2003; and provides additional 
     fiscal year 2002 transfer authority.
       The conferees included a general provision (Section 8021) 
     which amends language to clarify the original intent that 
     incentives authorized in the Indian Financing Act be applied 
     broadly. The conferees expect these adjustments will be 
     implemented expeditiously by the publication of an interim 
     final rule.
       The conferees included a general provision (Section 8029) 
     which amends language directing that not more than 6,321 
     staff years may be funded, and reduces the amount 
     appropriated for defense FFRDCs by $74,200,000.
       The conferees included a general provision (Section 8050) 
     that amends lanaguage recommending rescissions. The 
     recissions agreed to are:


                                                          (Rescissions)
Fiscal Year 2001:
  Procurement of Weapons and Tracked Combat Vehicles, Army C2$9,500,000
  Procurement of Ammunition, Army: WAM........................4,000,000
  Other Procurement, Army: Semitrailers, Tankers..............8,000,000
  Other Procurement, Navy: JTCTS..............................5,000,000
  Missile Procurement, Air Force: Titan......................93,600,000
Fiscal Year 2002:
                                             Missile Procurement, Army:
    Stinger...................................................5,150,000
    Avenger Mods.............................................10,000,000
    TOW Fire and Forget......................................13,200,000
    LOSAT.....................................................9,300,000
  Procurement of Ammunition, Army: RADAM.....................19,000,000
                                               Other Procurement, Army:
    Combat Identification Program............................11,000,000
    Spares--EHF Terminal.....................................10,200,000
                                        Missile Procurement, Air Force:
    MALD......................................................8,900,000
    JSOW-B...................................................18,000,000
    Titan....................................................87,700,000

[[Page 20167]]

                      Research, Development, Test and Evaluation, Navy:
    Naval T&E Airborne Telemetry System.......................1,700,000
                 Research, Development, Test and Evaluation, Air Force:
    B-1B DSUP................................................45,500,000
    B-2 EHF SATCOM...........................................23,500,000
              Research, Development, Test and Evaluation, Defense-Wide:
    Towed Decoy...............................................3,000,000
    Combat Development Activities.............................4,000,000
    VSWMMCM-SAHRV.............................................1,500,000
    Passive RW Survivability..................................1,000,000
    Chemical and Biological Defense Program..................10,000,000
       (Note: The conferees agree to rescind Titan funding in 
     fiscal year 2001 and fiscal year 2002 budgeted for program 
     closeout and facilities shutdown. The conferees note that 
     launch delays have deferred the last Titan launch to fiscal 
     year 2005. The conferees believe it is more appropriate to 
     budget for these activities in the year of performance. The 
     conferees have made no adjustments to funds budgeted for 
     special termination costs.)
       The conferees included a general provision (Section 8065) 
     which amends language limiting the use of funds. The amended 
     provision includes a government-wide appropriations 
     limitation intended by the conferees to protect the status of 
     a national memorial established under Section 8137 of Public 
     Law 107-117.
       The conferees included a general provision (Section 8095) 
     which amends language making funds available for the Arrow 
     Missile Defense Program.
       The conferees included a general provision (Section 8099) 
     which amends House language providing $1,700,000 for the 
     Fisher House Foundation, Inc.
       The conferees included a new general provision (Section 
     8100) which amends Senate language which reduces funds 
     available by $850,000,000 to reflect savings to be achieved 
     from efficiencies in the procurement of advisory and 
     assistance services.
       The conferees included a general provision (Section 8101) 
     which amends language which allows the Secretary of Defense 
     to transfer $1,279,899,000 to fund increases in the cost of 
     prior year shipbuilding programs.
       The conferees included a general provision (Section 8105) 
     which restores and amends a fiscal year 2002 provision which, 
     for the period of fiscal years 2003 through 2005, provides 
     the authority to transfer $20,000,000 of unobligated balances 
     in ``Research, Development, Test and Evaluation, Army'' to a 
     current year account only for the continuation of the Army 
     Venture Capital Fund demonstration.
       The conferees included a general provision (Section 8108) 
     which amends Senate language appropriating $7,750,000 to 
     provide assistance by grant or otherwise to public schools 
     that have unusually high concentrations of special needs 
     military dependents enrolled.
       The conferees included a new general provision (Section 
     8109) which amends Senate language which reduces funds 
     available by $400,000,000 for cost growth in information 
     technology development.
       The conferees included a new general provision (section 
     8112) which amends House language reducing funds available in 
     operation and maintenance accounts by $120,000,000 for 
     Working Capital Fund cash balance and rate stabilization 
     adjustments.
       The conferees included a new general provision (Section 
     8113) which amends House language reducing funds available in 
     operation and maintenance accounts by $48,000,000 for excess 
     funded carryover.
       The conferees included a new general provision (Section 
     8114) which amends Senate language providing funds for 
     combating terrorism. The conferees note that the conference 
     agreement includes funds in title II, Operation and 
     Maintenance, above those requested by the President for the 
     service, Defense-Wide, and Reserve component operation and 
     maintenance appropriations. This includes funds specifically 
     requested in the Defense Emergency Response Fund for 
     combating terrorism and related activities, which in this 
     conference agreement have been provided in the operation and 
     maintenance appropriations for proper execution. The 
     provision provides that not less than $1,000,000,000 of these 
     funds are available for operations of the Department of 
     Defense to prosecute the war on terrorism. The conferees 
     direct that these funds be executed as specifically 
     delineated elsewhere in this statement.
       The conferees included a new general provision (Section 
     8115) that amends House language which provides $3,400,000 in 
     ``Operation and Maintenance, Army National Guard'' funds for 
     a grant to the Center for Military Recruitment, Assessment 
     and Veterans Employment.
       The conferees included a new general provision (Section 
     8117) that amends Senate language amending Section 8159 of 
     Public Law 107-117.
       The conferees included a new general provision (Section 
     8118) that amends House language placing limitations on 
     additional NMCI contract work stations until an Operational 
     Assessment has been conducted and certified as acceptable to 
     the congressional defense committees.
       The conferees included a new general provision (Section 
     8119) which amends House language which prohibits acquisition 
     of more than 16 F-22 aircraft until the Under Secretary of 
     Defense for Acquisition, Technology, and Logistics provides a 
     risk assessment to the congressional defense committees.
       The conferees included a new general provision (Section 
     8120) which amends House language that allows for the 
     transfer of funds from the Pentagon Reservation Maintenance 
     Revolving Fund to the Defense Emergency Response Fund.
       The conferees included a new general provision (Section 
     8121) which amends House language concerning development of 
     the Non-Line of Sight (NLOS) Objective Force cannon and 
     resupply vehicle program. Language directs the Army to 
     implement an interim capability before complete fielding of 
     the Objective Force, and ensure that budgetary and 
     programmatic plans will provide for no fewer than six Stryker 
     Brigade Combat Teams.
       The conferees included a new general provision (Section 
     8123) which amends House language that limits expenditure of 
     funds until certain audit decisions have been made.
       The conferees included a general provisions (Section 8126) 
     which amends Senate language making funds available from 
     amounts appropriated in Public Law 107-206 under the heading 
     ``DEFENSE EMERGENCY RESPONSE FUND'', for 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.
       The conferees included a general provision (Section 8128) 
     which amends Senate language providing $3,000,000 of 
     ``Operation and Maintenance, Defense-Wide'' funds for impact 
     aid for children with severe disabilities.
       The conferees included a general provision (Section 8129) 
     which amends Senate language appropriating $8,100,000 for 
     grants to the American Red Cross, the United Service 
     Organizations, Inc., and the Intrepid Sea-Air-Space 
     Foundation.
       The conferees included a new general provision (Section 
     8135) that amends Senate language which reduces available 
     funds by $1,674,000,000 to reflect savings from revised 
     economic assumptions.
       The conferees included a new general provision (Section 
     8140) which amends Senate language which earmarks $3,000,000 
     of funds available in this Act for a grant to the National D-
     Day Museum.
       The conferees included a new general provision (Section 
     8144) which amends Senate language authorizing that up to 
     September 30, 2003, the President may waive conditions 
     described in section 1305 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 22 
     U.S.C. 5952 note) if the President submits to Congress a 
     written certification meeting several criteria.
       The conferees included a new general provision (Section 
     8145) which amends Senate language amending sections 305 and 
     309 of the Supplemental Appropriations Act for Fiscal year 
     2002 (Public Law 107-206).
       The conferees included a new general provision (Section 
     8146) which amends Senate language amending section 310 of 
     the Supplemental Appropriations Act for Fiscal Year 2002 
     (Public Law 107-206) modifying a grant for the purpose of 
     supporting community adjustment activities relating to the 
     closure of a Naval Security Group Activity.
       The conferees included a general provision (Section 8148) 
     which amends Senate language which provides $5,000,000 of 
     ``Operation and Maintenance, Defense-Wide'' funds for 
     operation of domestic violence fatality review teams.
       The conferees included a general provision (Section 8149) 
     which limits the issuance of government purchase and travel 
     charge cards for Department of Defense personnel. The 
     provision requires the Secretary of Defense to conduct a 
     credit check before issuing to an individual a charge card, 
     and prohibits the issuance of a charge card to an individual 
     who is not found credit worthy. The conferees understand that 
     this provision allows an individual with no credit history to 
     be issued a restricted-use charge, debit, or stored value 
     card.
       The conferees included a new general provision (Section 
     8150) which amends Senate language directing the Secretary of 
     the Navy to transfer administrative jurisdiction of the law 
     enforcement training facility at the former Charleston Naval 
     Base.
       The conferees included a new title IX which provides the 
     Secretary of Defense the authority to make loan guarantees to 
     eligible U.S. commercial providers for the purpose of 
     producing commercial reusable inspace transportation services 
     or systems.

                   CONFERENCE TOTAL--WITH COMPARISONS

       The total new budget (obligational) authority for the 
     fiscal year 2003 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 2002 amount, the 2003 
     budget estimates, and the House and Senate bills for 2003 
     follow:

[[Page 20168]]

                       [In thousands of dollars]

New budget (obligational) authority, fiscal year 2002......$334,239,062
Budget estiimates of new (obligational) authority, fiscal ye366,671,630
House bill, fiscal year 2003................................354,712,914
Senate bill, fiscal year 2003...............................355,405,941
Conference agreement, fiscal year 2003......................355,107,380
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 2002.....+20,868,318
  Budget estimates of new (obligational) authority, fiscal y-11,564,250
  House bill, fiscal year 2003.................................+394,466
  Senate bill, fiscal year 2003................................-298,561

     Jerry Lewis,
     Bill Young,
     Joe Skeen,
     Dave Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Randy ``Duke'' Cunningham,
     Rodney P. Frelinghuysen,
     Todd Tiahrt,
     John P. Murtha,
     Norman D. Dicks,
     Martin Olav Sabo,
     Peter J. Visclosky,
     James P. Moran,
     Dave R. Obey
       (Except for sec. 8149 relating to corporate expatriates),
                                Managers on the Part of the House.

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

                          ____________________