[Congressional Record (Bound Edition), Volume 150 (2004), Part 12]
[House]
[Pages 16403-16720]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     CONFERENCE REPORT ON H.R. 4613

  Mr. LEWIS of California submitted the following conference report and 
statement on the bill (H.R. 4613) ``making appropriations for the 
Department of Defense for the fiscal year ending September 30, 2005, 
and for other purposes'':

                  Conference Report (H. Rept. 108-622)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4613) ``making appropriations for the Department of Defense 
     for the fiscal year ending September 30, 2005, 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, 2005, 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, $29,381,422,000.

[[Page 16404]]



                        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, $24,347,807,000.

                    Military Personnel, Marine Corps

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Marine Corps on 
     active duty (except members of the Reserve provided for 
     elsewhere); and for payments pursuant to section 156 of 
     Public Law 97-377, as amended (42 U.S.C. 402 note), and to 
     the Department of Defense Military Retirement Fund, 
     $9,581,102,000.

                     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, $24,155,911,000.

                        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, 
     $3,663,890,000.

                        Reserve Personnel, Navy

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Navy 
     Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Reserve Officers' Training Corps, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund, $2,084,032,000.

                    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, $623,073,000.

                      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, 
     $1,451,950,000.

                     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, $5,901,729,000.

                  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, $2,540,242,000.

                                TITLE II

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army


                     (INCLUDING TRANSFER OF FUNDS)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Army, as authorized by law; 
     and not to exceed $11,144,000 can be used for emergencies and 
     extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Army, and payments may be 
     made on his certificate of necessity for confidential 
     military purposes, $25,764,634,000: Provided, That of funds 
     made available under this heading, $1,900,000 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 $4,525,000 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, 
     $29,687,245,000.

                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, $3,629,901,000.

                  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 $7,699,000 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, $28,113,533,000: 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.

                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, $17,449,619,000: Provided, That not 
     more than $25,000,000 may be used for the Combatant Commander 
     Initiative Fund authorized under section 166a of title 10, 
     United States Code, and of which not to exceed $32,000,000 
     can be used for emergencies and extraordinary expenses, to be 
     expended on the approval or authority of the Secretary of 
     Defense, and payments may be made on his certificate of 
     necessity for confidential military purposes: Provided 
     further, That notwithstanding any other provision of law, of 
     the funds provided in this Act for Civil Military programs 
     under this heading, $500,000 shall be available for a grant 
     for Outdoor Odyssey, Roaring Run, Pennsylvania, to support 
     the Youth Development and Leadership program and Department 
     of Defense STARBASE program: Provided further, That of the 
     funds made available under this heading, $2,550,000 shall be 
     available only for a Washington-based internship and 
     immersion program to allow U.S. Asian-American Pacific 
     Islander undergraduate college and university students from 
     economically disadvantaged backgrounds to participate in 
     academic and educational programs in the Department of 
     Defense and related Federal defense agencies: Provided 
     further, That notwithstanding any other provision of law, the 
     Office of Economic Adjustment of the Department of Defense 
     may make grants and supplement other Federal funds using 
     funds made available by this Act under this heading in 
     accordance with the guidance provided in the Joint 
     Explanatory Statement of the Committee of the Conference for 
     the Conference Report to accompany H.R. 4613 and these 
     projects shall hereafter be considered to be authorized by 
     law: Provided further, That of the funds provided under this 
     heading that are available for commercial imagery purchases, 
     $500,000 shall be used by the National Geospatial-
     Intelligence Agency to pay for imagery and high-resolution 
     terrain data collected in 2003 in support of the California 
     wildfires: Provided further, That of the funds provided under 
     this heading not less than $27,000,000 shall be made 
     available for the Procurement Technical Assistance 
     Cooperative Agreement Program, of which not less than 
     $3,600,000 shall be available for centers defined in 10 
     U.S.C. 2411(1)(D): 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

[[Page 16405]]

     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 $4,000,000, 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, 
     $1,991,128,000.

                Operation and Maintenance, Navy Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Navy Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications, 
     $1,237,638,000.

            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, $187,196,000.

              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, $2,242,590,000.

             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), $4,442,386,000.

             Operation and Maintenance, Air National Guard

       For expenses of training, organizing, and administering the 
     Air National Guard, including medical and hospital treatment 
     and related expenses in non-Federal hospitals; maintenance, 
     operation, and repairs to structures and facilities; 
     transportation of things, hire of passenger motor vehicles; 
     supplying and equipping the Air National Guard, as authorized 
     by law; expenses for repair, modification, maintenance, and 
     issue of supplies and equipment, including those 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, $4,472,738,000.

            Overseas Contingency Operations Transfer Account


                     (including transfer of funds)

       For expenses directly relating to Overseas Contingency 
     Operations by United States military forces, $10,000,000, to 
     remain available until expended: Provided, That the Secretary 
     of Defense may transfer these funds only to military 
     personnel accounts; operation and maintenance accounts within 
     this title; the Defense Health Program appropriation; 
     procurement accounts; research, development, test and 
     evaluation accounts; and to working capital funds: Provided 
     further, That the funds transferred shall be merged with and 
     shall be available for the same purposes and for the same 
     time period, as the appropriation to which transferred: 
     Provided further, That upon a determination that all or part 
     of the funds transferred from this appropriation are not 
     necessary for the purposes provided herein, such amounts may 
     be transferred back to this appropriation: Provided further, 
     That the transfer authority provided in this paragraph is in 
     addition to any other transfer authority contained elsewhere 
     in this Act.

          United States Court of Appeals for the Armed Forces

       For salaries and expenses necessary for the United States 
     Court of Appeals for the Armed Forces, $10,825,000, of which 
     not to exceed $5,000 may be used for official representation 
     purposes.

                    Environmental Restoration, Army


                     (including transfer of funds)

       For the Department of the Army, $400,948,000, 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, $266,820,000, 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, $397,368,000, 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, $23,684,000, 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, $266,516,000, 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, 2557, and 2561 of title 10, United States Code), 
     $59,000,000, to remain available until September 30, 2006.

[[Page 16406]]



              Former Soviet Union Threat Reduction Account

       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, $409,200,000, to remain 
     available until September 30, 2007: Provided, That of the 
     amounts provided under this heading, $15,000,000 shall be 
     available only to support the dismantling and disposal of 
     nuclear submarines, submarine reactor components, and 
     security enhancements for transport and storage of nuclear 
     warheads in the Russian Far East.

                               TITLE III

                              PROCUREMENT

                       Aircraft Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $2,854,541,000, to remain available for obligation until 
     September 30, 2007.

                       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, 
     $1,307,000,000, to remain available for obligation until 
     September 30, 2007.

        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, $2,467,495,000, to remain available for 
     obligation until September 30, 2007.

                    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, 
     $1,590,952,000, to remain available for obligation until 
     September 30, 2007.

                        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 1 vehicle required for 
     physical security of personnel, notwithstanding price 
     limitations applicable to passenger vehicles but not to 
     exceed $200,000 per vehicle; communications and electronic 
     equipment; other support equipment; spare parts, ordnance, 
     and accessories therefor; specialized equipment and training 
     devices; expansion of public and private plants, including 
     the land necessary therefor, for the foregoing purposes, and 
     such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes, 
     $4,955,296,000, to remain available for obligation until 
     September 30, 2007.

                       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, $8,912,042,000, to remain available 
     for obligation until September 30, 2007.

                       Weapons Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of missiles, torpedoes, other weapons, and 
     related support equipment including spare parts, and 
     accessories therefor; expansion of public and private plants, 
     including the land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and contractor-owned equipment layaway, 
     $2,114,720,000, to remain available for obligation until 
     September 30, 2007.

            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, 
     $888,340,000, to remain available for obligation until 
     September 30, 2007.

                   Shipbuilding and Conversion, Navy

       For expenses necessary for the construction, acquisition, 
     or conversion of vessels as authorized by law, including 
     armor and armament thereof, plant equipment, appliances, and 
     machine tools and installation thereof in public and private 
     plants; reserve plant and Government and contractor-owned 
     equipment layaway; procurement of critical, long leadtime 
     components and designs for vessels to be constructed or 
     converted in the future; and expansion of public and private 
     plants, including land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title, as follows:
       Carrier Replacement Program (AP), $626,084,000;
       NSSN, $1,581,143,000;
       NSSN (AP), $871,864,000;
       SSGN, $469,226,000;
       SSGN (AP), $48,000,000;
       CVN Refuelings (AP), $333,061,000;
       SSN Submarine Refuelings (AP), $19,368,000;
       SSBN Submarine Refuelings, $262,229,000;
       SSBN Submarine Refuelings (AP), $63,971,000;
       DDG-51 Destroyer, $3,444,950,000;
       DD(X) (AP), $305,516,000;
       DDG-51 Destroyer Modernization, $50,000,000;
       LPD-17, $966,559,000;
       LHD-8, $236,018,000;
       LHA-R (AP), $150,000,000;
       LCU (X), $25,048,000;
       LCAC Landing Craft Air Cushion, $90,490,000;
       Prior year shipbuilding costs, $484,390,000;
       Service Craft, $36,899,000;
       Power Unit Assembly Facility, $11,300,000; and
       For outfitting, post delivery, conversions, and first 
     destination transportation, $351,327,000.
       In all: $10,427,443,000, to remain available for obligation 
     until September 30, 2009: Provided, That additional 
     obligations may be incurred after September 30, 2009, 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 9 
     vehicles required for physical security of personnel, 
     notwithstanding price limitations applicable to passenger 
     vehicles but not to exceed $200,000 per vehicle; expansion of 
     public and private plants, including the land necessary 
     therefor, and such lands and interests therein, may be 
     acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway, $4,875,786,000, to remain available 
     for obligation until September 30, 2007: Provided, That funds

[[Page 16407]]

     available in this appropriation may be used for TRIDENT 
     modifications associated with force protection and security 
     requirements.

                       Procurement, Marine Corps

       For expenses necessary for the procurement, manufacture, 
     and modification of missiles, armament, military equipment, 
     spare parts, and accessories therefor; plant equipment, 
     appliances, and machine tools, and installation thereof in 
     public and private plants; reserve plant and Government and 
     contractor-owned equipment layaway; vehicles for the Marine 
     Corps, including the purchase of passenger motor vehicles for 
     replacement only; and expansion of public and private plants, 
     including land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title, 
     $1,432,203,000, to remain available for obligation until 
     September 30, 2007.

                    Aircraft Procurement, Air Force

       For construction, procurement, and modification of aircraft 
     and equipment, including armor and armament, specialized 
     ground handling equipment, and training devices, spare parts, 
     and accessories therefor; specialized equipment; expansion of 
     public and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things, 
     $13,648,304,000, to remain available for obligation until 
     September 30, 2007: Provided, That amounts provided under 
     this heading shall be used for the procurement of 15 C-17 
     aircraft: Provided further, That amounts provided under this 
     heading shall be used for the advance procurement of not less 
     than 15 C-17 aircraft: Provided further, That the Secretary 
     of the Air Force shall fully fund the procurement of not less 
     than 15 C-17 aircraft in fiscal year 2006: Provided further, 
     That the Secretary of the Air Force shall allocate a 
     reduction of $158,600,000 proportionately to each budget 
     activity, activity group, subactivity group, and each 
     program, project, and activity funded by this appropriation.

                     Missile Procurement, Air Force

       For construction, procurement, and modification of 
     missiles, spacecraft, rockets, and related equipment, 
     including spare parts and accessories therefor, ground 
     handling equipment, and training devices; expansion of public 
     and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things, 
     $4,458,113,000, to remain available for obligation until 
     September 30, 2007.

                  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, 
     $1,327,459,000, to remain available for obligation until 
     September 30, 2007.

                      Other Procurement, Air Force

       For procurement and modification of equipment (including 
     ground guidance and electronic control equipment, and ground 
     electronic and communication equipment), and supplies, 
     materials, and spare parts therefor, not otherwise provided 
     for; the purchase of passenger motor vehicles for replacement 
     only, and the purchase of 1 vehicle required for physical 
     security of personnel, notwithstanding price limitations 
     applicable to passenger vehicles but not to exceed $200,000 
     per vehicle; lease of passenger motor vehicles; and expansion 
     of public and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon, prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway, $13,071,297,000, to remain available for obligation 
     until September 30, 2007.

                       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; 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, $2,956,047,000, to remain 
     available for obligation until September 30, 2007.

                  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, $350,000,000, 
     to remain available for obligation until September 30, 2007: 
     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), 
     $42,765,000, to remain available until expended.

                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, $10,698,989,000, to remain 
     available for obligation until September 30, 2006: Provided, 
     That of the amounts provided under this heading, $11,500,000 
     for Molecular Genetics and Musculoskeletal Research in 
     program element 0602787A shall remain available until 
     expended.

            Research, Development, Test and Evaluation, Navy

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, $17,043,812,000, to remain 
     available for obligation until September 30, 2006: Provided, 
     That funds appropriated in this paragraph which are available 
     for the V-22 may be used to meet unique operational 
     requirements of the Special Operations Forces: Provided 
     further, That funds appropriated in this paragraph shall be 
     available for the Cobra Judy program.

         Research, Development, Test and Evaluation, Air Force

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, $20,890,922,000, to remain 
     available for obligation until September 30, 2006.

        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, $20,983,624,000, to 
     remain available for obligation until September 30, 2006.

                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, $314,835,000, to remain available for obligation 
     until September 30, 2006.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       For the Defense Working Capital Funds, $1,174,210,000.

                     National Defense Sealift Fund

       For National Defense Sealift Fund programs, projects, and 
     activities, and for expenses of the National Defense Reserve 
     Fleet, as established by section 11 of the Merchant Ship 
     Sales Act of 1946 (50 U.S.C. App. 1744), and for the 
     necessary expenses to maintain and preserve a U.S.-flag 
     merchant fleet to serve the national security needs of the 
     United States, $1,204,626,000, 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

[[Page 16408]]

     not available to meet Department of Defense requirements on a 
     timely basis and that such an acquisition must be made in 
     order to acquire capability for national security purposes.

                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For expenses, not otherwise provided for, for medical and 
     health care programs of the Department of Defense, as 
     authorized by law, $18,171,436,000, of which $17,297,419,000 
     shall be for Operation and maintenance, of which not to 
     exceed 2 percent shall remain available until September 30, 
     2006, and of which up to $8,953,494,000 may be available for 
     contracts entered into under the TRICARE program; of which 
     $367,035,000, to remain available for obligation until 
     September 30, 2007, shall be for Procurement; and of which 
     $506,982,000, to remain available for obligation until 
     September 30, 2006, shall be for Research, development, test 
     and evaluation: Provided, That notwithstanding any other 
     provision of law, of the amount made available under this 
     heading for Operation and maintenance, $9,500,000 shall 
     remain available until expended, and shall be available only 
     for deposit into the Army Fisher House Non-Appropriated Fund 
     Instrumentality and shall be used in support and upkeep of 
     existing Fisher Houses managed by the Army: Provided further, 
     That notwithstanding any other provision of law, of the 
     amount made available under this heading for Research, 
     development, test and evaluation, not less than $7,500,000 
     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: Provided further, That Title VI 
     of the Department of Defense Appropriations Act, 2004, in the 
     appropriation for the Defense Health Program, is amended by 
     adding before the period a comma and the following: ``and of 
     which not less than $4,250,000 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, $1,372,990,000, of which $1,088,801,000 
     shall be for Operation and maintenance; $78,980,000 shall be 
     for Procurement to remain available until September 30, 2007; 
     $205,209,000 shall be for Research, development, test and 
     evaluation to remain available until September 30, 2006; and 
     no less than $137,404,000 may be for the Chemical Stockpile 
     Emergency Preparedness Program, of which $44,631,000 shall be 
     for activities on military installations and $92,773,000 
     shall be to assist State and local governments.

         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, $906,522,000: 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, $204,562,000, of which 
     $202,362,000 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 $2,100,000, to 
     remain available until September 30, 2007, shall be for 
     Procurement; and of which $100,000, to remain available until 
     September 30, 2006, shall be for Research, development, test 
     and evaluation.

                               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, 
     $239,400,000.

               Intelligence Community Management Account


                     (including transfer of funds)

       For necessary expenses of the Intelligence Community 
     Management Account, $310,466,000, of which $26,953,000 for 
     the Advanced Research and Development Committee shall remain 
     available until September 30, 2006: Provided, That of the 
     funds appropriated under this heading, $39,422,000 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, 2007 and $1,000,000 for 
     Research, development, test and evaluation shall remain 
     available until September 30, 2006: 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.

                 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 $3,500,000,000 of working 
     capital funds of the Department of Defense or funds made 
     available in this Act to the Department of Defense for 
     military functions (except military construction) between 
     such appropriations or funds or any subdivision thereof, to 
     be merged with and to be available for the same purposes, and 
     for the same time period, as the appropriation or fund to 
     which transferred: Provided, That such authority to transfer 
     may not be used unless for higher priority items, based on 
     unforeseen military requirements, than those for which 
     originally appropriated and in no case where the item for 
     which funds are requested has been denied by the Congress: 
     Provided further, That the Secretary of Defense shall notify 
     the Congress promptly of all transfers made pursuant to this 
     authority or any other authority in this Act: Provided 
     further, That no part of the funds in this Act shall be 
     available to prepare or present a request to the Committees 
     on Appropriations for reprogramming of funds, unless for 
     higher priority items, based on unforeseen military 
     requirements, than those for which originally appropriated 
     and in no case where the item for which reprogramming is 
     requested has been denied by the Congress: Provided further, 
     That a request for multiple reprogrammings of funds using 
     authority provided in this section must be made prior to June 
     30, 2005: Provided further, That transfers among military 
     personnel appropriations shall not be taken into account for 
     purposes of the limitation on the amount of funds that may be 
     transferred under this section.


                          (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

[[Page 16409]]

     accounts in such amounts as may be determined by the 
     Secretary of Defense, with the approval of the Office of 
     Management and Budget, except that such transfers may not be 
     made unless the Secretary of Defense has notified the 
     Congress of the proposed transfer. Except in amounts equal to 
     the amounts appropriated to working capital funds in this 
     Act, no obligations may be made against a working capital 
     fund to procure or increase the value of war reserve material 
     inventory, unless the Secretary of Defense has notified the 
     Congress prior to any such obligation.
       Sec. 8007. Funds appropriated by this Act may not be used 
     to initiate a special access program without prior 
     notification 30 calendar days in session in advance to the 
     congressional defense committees.
       Sec. 8008. None of the funds provided in this Act shall be 
     available to initiate: (1) a multiyear contract that employs 
     economic order quantity procurement in excess of $20,000,000 
     in any 1 year of the contract or that includes an unfunded 
     contingent liability in excess of $20,000,000; or (2) a 
     contract for advance procurement leading to a multiyear 
     contract that employs economic order quantity procurement in 
     excess of $20,000,000 in any 1 year, unless the congressional 
     defense committees have been notified at least 30 days in 
     advance of the proposed contract award: Provided, That no 
     part of any appropriation contained in this Act shall be 
     available to initiate a multiyear contract for which the 
     economic order quantity advance procurement is not funded at 
     least to the limits of the Government's liability: Provided 
     further, That no part of any appropriation contained in this 
     Act shall be available to initiate multiyear procurement 
     contracts for any systems or component thereof if the value 
     of the multiyear contract would exceed $500,000,000 unless 
     specifically provided in this Act: Provided further, That no 
     multiyear procurement contract can be terminated without 10-
     day prior notification to the congressional defense 
     committees: Provided further, That the execution of multiyear 
     authority shall require the use of a present value analysis 
     to determine lowest cost compared to an annual procurement: 
     Provided further, That none of the funds provided in this Act 
     may be used for a multiyear contract executed after the date 
     of the enactment of this Act unless in the case of any such 
     contract--
       (1) the Secretary of Defense has submitted to Congress a 
     budget request for full funding of units to be procured 
     through the contract;
       (2) cancellation provisions in the contract do not include 
     consideration of recurring manufacturing costs of the 
     contractor associated with the production of unfunded units 
     to be delivered under the contract;
       (3) the contract provides that payments to the contractor 
     under the contract shall not be made in advance of incurred 
     costs on funded units; and
       (4) the contract does not provide for a price adjustment 
     based on a failure to award a follow-on contract.
       Funds appropriated in title III of this Act may be used for 
     a multiyear procurement contract as follows:
       Lightweight 155mm Howitzer.
       Sec. 8009. Within the funds appropriated for the operation 
     and maintenance of the Armed Forces, funds are hereby 
     appropriated pursuant to section 401 of title 10, United 
     States Code, for humanitarian and civic assistance costs 
     under chapter 20 of title 10, United States Code. Such funds 
     may also be obligated for humanitarian and civic assistance 
     costs incidental to authorized operations and pursuant to 
     authority granted in section 401 of chapter 20 of title 10, 
     United States Code, and these obligations shall be reported 
     as required by section 401(d) of title 10, United States 
     Code: Provided, That funds available for operation and 
     maintenance shall be available for providing humanitarian and 
     similar assistance by using Civic Action Teams in the Trust 
     Territories of the Pacific Islands and freely associated 
     states of Micronesia, pursuant to the Compact of Free 
     Association as authorized by Public Law 99-239: Provided 
     further, That upon a determination by the Secretary of the 
     Army that such action is beneficial for graduate medical 
     education programs conducted at Army medical facilities 
     located in Hawaii, the Secretary of the Army may authorize 
     the provision of medical services at such facilities and 
     transportation to such facilities, on a nonreimbursable 
     basis, for civilian patients from American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Marshall 
     Islands, the Federated States of Micronesia, Palau, and Guam.
       Sec. 8010. (a) During fiscal year 2005, 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 2006 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2006 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 2006.
       (c) Nothing in this section shall be construed to apply to 
     military (civilian) technicians.
       Sec. 8011. None of the funds appropriated in this or any 
     other Act may be used to initiate a new installation overseas 
     without 30-day advance notification to the Committees on 
     Appropriations.
       Sec. 8012. None of the funds made available by this Act 
     shall be used in any way, directly or indirectly, to 
     influence congressional action on any legislation or 
     appropriation matters pending before the Congress.
       Sec. 8013. None of the funds appropriated by this Act shall 
     be available for the basic pay and allowances of any member 
     of the Army participating as a full-time student and 
     receiving benefits paid by the Secretary of Veterans Affairs 
     from the Department of Defense Education Benefits Fund when 
     time spent as a full-time student is credited toward 
     completion of a service commitment: Provided, That this 
     subsection shall not apply to those members who have 
     reenlisted with this option prior to October 1, 1987: 
     Provided further, That this subsection applies only to active 
     components of the Army.
       Sec. 8014. (a) Limitation on Conversion to Contractor 
     Performance.--None of the funds appropriated by this Act 
     shall be available to convert to contractor performance an 
     activity or function of the Department of Defense that, on or 
     after the date of the enactment of this Act, is performed by 
     more than 10 Department of Defense civilian employees 
     unless--
       (1) the conversion is based on the result of a public-
     private competition that includes a most efficient and cost 
     effective organization plan developed by such activity or 
     function;
       (2) the Competitive Sourcing Official determines that, over 
     all performance periods stated in the solicitation of offers 
     for performance of the activity or function, the cost of 
     performance of the activity or function by a contractor would 
     be less costly to the Department of Defense by an amount that 
     equals or exceeds the lesser of--
       (A) 10 percent of the most efficient organization's 
     personnel-related costs for performance of that activity or 
     function by Federal employees; or
       (B) $10,000,000; and
       (3) the contractor does not receive an advantage for a 
     proposal that would reduce costs for the Department of 
     Defense by--
       (A) not making an employer-sponsored health insurance plan 
     available to the workers who are to be employed in the 
     performance of that activity or function under the contract; 
     or
       (B) offering to such workers an employer-sponsored health 
     benefits plan that requires the employer to contribute less 
     towards the premium or subscription share than the amount 
     that is paid by the Department of Defense for health benefits 
     for civilian employees under chapter 89 of title 5, United 
     States Code.
       (b) Exceptions.--
       (1) The Department of Defense, without regard to subsection 
     (a) of this section or subsections (a), (b), or (c) of 
     section 2461 of title 10, United States Code, and 
     notwithstanding any administrative regulation, requirement, 
     or policy to the contrary shall have full authority to enter 
     into a contract for the performance of any commercial or 
     industrial type function of the Department of Defense that--
       (A) is included on the procurement list established 
     pursuant to section 2 of the Javits-Wagner-O'Day Act (41 
     U.S.C. 47);
       (B) is planned to be converted to performance by a 
     qualified nonprofit agency for the blind or by a qualified 
     nonprofit agency for other severely handicapped individuals 
     in accordance with that Act; or
       (C) is planned to be converted to performance by a 
     qualified firm under at least 51 percent ownership by an 
     Indian tribe, as defined in section 4(e) of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     450b(e)), or a Native Hawaiian Organization, as defined in 
     section 8(a)(15) of the Small Business Act (15 U.S.C. 
     637(a)(15)).
       (2) This section shall not apply to depot contracts or 
     contracts for depot maintenance as provided in sections 2469 
     and 2474 of title 10, United States Code.
       (c) Treatment of Conversion.--The conversion of any 
     activity or function of the Department of Defense under the 
     authority provided by this section shall be credited toward 
     any competitive or outsourcing goal, target, or measurement 
     that may be established by statute, regulation, or policy and 
     is deemed to be awarded under the authority of, and in 
     compliance with, subsection (h) of section 2304 of title 10, 
     United States Code, for the competition or outsourcing of 
     commercial activities.


                          (transfer of funds)

       Sec. 8015. Funds appropriated in title III of this Act for 
     the Department of Defense Pilot Mentor-Protege Program may be 
     transferred to any other appropriation contained in this Act 
     solely for the purpose of implementing a Mentor-Protege 
     Program developmental assistance agreement pursuant to 
     section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2302 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

[[Page 16410]]

     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 and hereafter, 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 subsequent fiscal years shall identify such 
     sums anticipated in residual value settlements, and identify 
     such construction, real property maintenance or base 
     operating costs that shall be funded by the host nation 
     through such credits: Provided further, That all military 
     construction projects to be executed from such accounts must 
     be previously approved in a prior Act of Congress: Provided 
     further, That each such executive agreement with a NATO 
     member host nation shall be reported to the congressional 
     defense committees, the Committee on International Relations 
     of the House of Representatives and the Committee on Foreign 
     Relations of the Senate 30 days prior to the conclusion and 
     endorsement of any such agreement established under this 
     provision.
       Sec. 8019. None of the funds available to the Department of 
     Defense may be used to demilitarize or dispose of M-1 
     Carbines, M-1 Garand rifles, M-14 rifles, .22 caliber rifles, 
     .30 caliber rifles, or M-1911 pistols.
       Sec. 8020. No more than $500,000 of the funds appropriated 
     or made available in this Act shall be used during a single 
     fiscal year for any single relocation of an organization, 
     unit, activity or function of the Department of Defense into 
     or within the National Capital Region: Provided, That the 
     Secretary of Defense may waive this restriction on a case-by-
     case basis by certifying in writing to the congressional 
     defense committees that such a relocation is required in the 
     best interest of the Government.
       Sec. 8021. In addition to the funds provided elsewhere in 
     this Act, $8,000,000 is appropriated only for incentive 
     payments authorized by section 504 of the Indian Financing 
     Act of 1974 (25 U.S.C. 1544): Provided, That a prime 
     contractor or a subcontractor at any tier that makes a 
     subcontract award to any subcontractor or supplier as defined 
     in 25 U.S.C. 1544 or a small business owned and controlled by 
     an individual or individuals defined under 25 U.S.C. 4221(9) 
     shall be considered a contractor for the purposes of being 
     allowed additional compensation under section 504 of the 
     Indian Financing Act of 1974 (25 U.S.C. 1544) whenever the 
     prime contract or subcontract amount is over $500,000 and 
     involves the expenditure of funds appropriated by an Act 
     making Appropriations for the Department of Defense with 
     respect to any fiscal year: Provided further, That 
     notwithstanding 41 U.S.C. 430, this section shall be 
     applicable to any Department of Defense acquisition of 
     supplies or services, including any contract and any 
     subcontract at any tier for acquisition of commercial items 
     produced or manufactured, in whole or in part by any 
     subcontractor or supplier defined in 25 U.S.C. 1544 or a 
     small business owned and controlled by an individual or 
     individuals defined under 25 U.S.C. 4221(9): Provided 
     further, That businesses certified as 8(a) by the Small 
     Business Administration pursuant to section 8(a)(15) of 
     Public Law 85-536, as amended, shall have the same status as 
     other program participants under section 602 of Public Law 
     100-656, 102 Stat. 3825 (Business Opportunity Development 
     Reform Act of 1988) for purposes of contracting with agencies 
     of the Department of Defense.
       Sec. 8022. None of the funds appropriated by this Act shall 
     be available to perform any cost study pursuant to the 
     provisions of OMB Circular A-76 if the study being performed 
     exceeds a period of 24 months after initiation of such study 
     with respect to a single function activity or 30 months after 
     initiation of such study for a multi-function activity.
       Sec. 8023. Funds appropriated by this Act for the American 
     Forces Information Service shall not be used for any national 
     or international political or psychological activities.
       Sec. 8024. Notwithstanding any other provision of law or 
     regulation, the Secretary of Defense may adjust wage rates 
     for civilian employees hired for certain health care 
     occupations as authorized for the Secretary of Veterans 
     Affairs by section 7455 of title 38, United States Code.
       Sec. 8025. (a) Of the amount appropriated by title II under 
     the heading ``Operation and Maintenance, Air Force'', up to 
     $2,500,000 may be used for the acquisition of Native 
     Allotment F-14589 by the Secretary of the Air Force in 
     accordance with this section (including for the appraisal 
     under this section), and for fully compensating the owners of 
     such allotment for the damages caused to such owners by Air 
     Force occupancy of property comprising that allotment.
       (b) The acquisition under this section may be made only 
     with the consent of the owners of Native Allotment F-14589 
     and only for the appraised fair marked value of that 
     allotment, as determined by the appraiser under subsection 
     (c).
       (c) Not later than 60 days after the date of the enactment 
     of this Act, the Secretary of the Air Force shall select, 
     jointly with the owners of Native Allotment F-14589, and 
     retain a qualified appraiser to appraise the fair market 
     value of that allotment. The appraiser shall be an appraiser 
     who is independent of the Department of the Air Force and the 
     owners of the allotment. The Secretary shall ensure that the 
     appraiser completes the appraisal not later than 180 days 
     after the date of the enactment of this Act. The Secretary 
     shall pay the costs of the appraisal.
       (d) The Secretary of the Air Force shall complete the 
     acquisition of Native Allotment F-14589 not later than 
     September 30, 2005, subject to the conditions set forth in 
     subsection (b).
       Sec. 8026. During the current fiscal year, the Department 
     of Defense is authorized to incur obligations of not to 
     exceed $350,000,000 for purposes specified in section 
     2350j(c) of title 10, United States Code, in anticipation of 
     receipt of contributions, only from the Government of Kuwait, 
     under that section: Provided, That upon receipt, such 
     contributions from the Government of Kuwait shall be credited 
     to the appropriations or fund which incurred such 
     obligations.


                     (including transfer of funds)

       Sec. 8027. (a) Of the funds made available in this Act, not 
     less than $24,971,000 shall be available for the Civil Air 
     Patrol Corporation, of which--
       (1) $21,588,000 shall be available from ``Operation and 
     Maintenance, Air Force'' to support Civil Air Patrol 
     Corporation operation and maintenance, readiness, counterdrug 
     activities, and drug demand reduction activities involving 
     youth programs;
       (2) $2,581,000 shall be available from ``Aircraft 
     Procurement, Air Force''; and
       (3) $802,000 shall be available from ``Other Procurement, 
     Air Force'' for vehicle procurement.
       (b) The Secretary of the Air Force should waive 
     reimbursement for any funds used by the Civil Air Patrol for 
     counter-drug activities in support of Federal, State, and 
     local government agencies.
       Sec. 8028. (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 2005 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 2005, 
     not more than 5,400 staff years of technical effort (staff 
     years) may be funded for defense FFRDCs: Provided, That of 
     the specific amount referred to previously in this

[[Page 16411]]

     subsection, not more than 1,050 staff years may be funded for 
     the defense studies and analysis FFRDCs: Provided further, 
     That this subsection shall not apply to staff years funded in 
     the National Foreign Intelligence Program (NFIP).
       (e) The Secretary of Defense shall, with the submission of 
     the department's fiscal year 2006 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 $125,000,000.
       Sec. 8029. 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. 8030. 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. 8031. 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. 8032. (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 2005. 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. 8033. Appropriations contained in this Act that remain 
     available at the end of the current fiscal year, and at the 
     end of each fiscal year hereafter, 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. 8034. Amounts deposited during the current fiscal year 
     and hereafter to the special account established under 40 
     U.S.C. 572(b)(5)(A) and to the special account established 
     under 10 U.S.C. 2667(d)(1) are appropriated and shall be 
     available until transferred by the Secretary of Defense to 
     current applicable appropriations or funds of the Department 
     of Defense under the terms and conditions specified by 40 
     U.S.C. 572(b)(5)(B) and 10 U.S.C. 2667(d)(1)(B), to be merged 
     with and to be available for the same time period and the 
     same purposes as the appropriation to which transferred.
       Sec. 8035. None of the funds appropriated in this Act shall 
     be used to study, demonstrate, or implement any plans 
     privatizing, divesting or transferring of any Civil Works 
     missions, functions, or responsibilities for the United 
     States Army Corps of Engineers to other government agencies 
     without specific direction in a subsequent Act of Congress.
       Sec. 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 during the current fiscal year and hereafter 
     for ``Drug Interdiction and Counter-Drug Activities, 
     Defense'' may be obligated for the Young Marines program.


                     (including transfer of funds)

       Sec. 8038. During the current fiscal year, amounts 
     contained in the Department of Defense Overseas Military 
     Facility Investment Recovery Account established by section 
     2921(c)(1) of the National Defense Authorization Act of 1991 
     (Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
     until expended for the payments specified by section 
     2921(c)(2) of that Act.
       Sec. 8039. (a) In General.--Notwithstanding any other 
     provision of law, the Secretary of the Air Force may convey 
     at no cost to the Air Force, without consideration, to Indian 
     tribes located in the States of North Dakota, South Dakota, 
     Montana, and Minnesota relocatable military housing units 
     located at Grand Forks Air Force Base and Minot Air Force 
     Base that are excess to the needs of the Air Force.
       (b) Processing of Requests.--The Secretary of the Air Force 
     shall convey, at no cost to the Air Force, military housing 
     units under subsection (a) in accordance with the request for 
     such units that are submitted to the Secretary by the 
     Operation Walking Shield Program on behalf of Indian tribes 
     located in the States of North Dakota, South Dakota, Montana, 
     and Minnesota.
       (c) Resolution of Housing Unit Conflicts.--The Operation 
     Walking Shield Program shall resolve any conflicts among 
     requests of Indian tribes for housing units under subsection 
     (a) before submitting requests to the Secretary of the Air 
     Force under subsection (b).
       (d) Indian Tribe Defined.--In this section, the term 
     ``Indian tribe'' means any recognized Indian tribe included 
     on the current list published by the Secretary of the 
     Interior under section 104 of the Federally Recognized Indian 
     Tribe Act of 1994 (Public Law 103-454; 108 Stat. 4792; 25 
     U.S.C. 479a-1).
       Sec. 8040. During the current fiscal year, appropriations 
     which are available to the Department of Defense for 
     operation and maintenance may be used to purchase items 
     having an investment item unit cost of not more than 
     $250,000.
       Sec. 8041. (a) During the current fiscal year, none of the 
     appropriations or funds available to the Department of 
     Defense Working Capital Funds shall be used for the purchase 
     of an investment item for the purpose of acquiring a new 
     inventory item for sale or anticipated sale during the 
     current fiscal year or a subsequent fiscal year to customers 
     of the Department of Defense Working Capital Funds if such an 
     item would not have been chargeable to the Department of 
     Defense Business Operations Fund during fiscal year 1994 and 
     if the purchase of such an investment item would be 
     chargeable during the current fiscal year to appropriations 
     made to the Department of Defense for procurement.
       (b) The fiscal year 2006 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2006 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 2006 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, 2006: Provided, That funds appropriated, transferred, or 
     otherwise credited to the Central Intelligence Agency Central 
     Services Working Capital Fund during this or any prior or 
     subsequent fiscal year shall remain available until expended: 
     Provided further, That any funds appropriated or transferred 
     to the Central Intelligence Agency for advanced research and 
     development acquisition, for agent operations, and for covert 
     action programs authorized by the President under section 503 
     of the National Security Act of 1947, as amended, shall 
     remain available until September 30, 2006.
       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

[[Page 16412]]

     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. (a) None of the funds appropriated in this Act 
     may be expended by an entity of the Department of Defense 
     unless the entity, in expending the funds, complies with the 
     Buy American Act. For purposes of this subsection, the term 
     ``Buy American Act'' means title III of the Act entitled ``An 
     Act making appropriations for the Treasury and Post Office 
     Departments for the fiscal year ending June 30, 1934, and for 
     other purposes'', approved March 3, 1933 (41 U.S.C. 10a et 
     seq.).
       (b) If the Secretary of Defense determines that a person 
     has been convicted of intentionally affixing a label bearing 
     a ``Made in America'' inscription to any product sold in or 
     shipped to the United States that is not made in America, the 
     Secretary shall determine, in accordance with section 2410f 
     of title 10, United States Code, whether the person should be 
     debarred from contracting with the Department of Defense.
       (c) In the case of any equipment or products purchased with 
     appropriations provided under this Act, it is the sense of 
     the Congress that any entity of the Department of Defense, in 
     expending the appropriation, purchase only American-made 
     equipment and products, provided that American-made equipment 
     and products are cost-competitive, quality-competitive, and 
     available in a timely fashion.
       Sec. 8046. None of the funds appropriated by this Act shall 
     be available for a contract for studies, analysis, or 
     consulting services entered into without competition on the 
     basis of an unsolicited proposal unless the head of the 
     activity responsible for the procurement determines--
       (1) as a result of thorough technical evaluation, only one 
     source is found fully qualified to perform the proposed work;
       (2) the purpose of the contract is to explore an 
     unsolicited proposal which offers significant scientific or 
     technological promise, represents the product of original 
     thinking, and was submitted in confidence by one source; or
       (3) the purpose of the contract is to take advantage of 
     unique and significant industrial accomplishment by a 
     specific concern, or to insure that a new product or idea of 
     a specific concern is given financial support: Provided, That 
     this limitation shall not apply to contracts in an amount of 
     less than $25,000, contracts related to improvements of 
     equipment that is in development or production, or contracts 
     as to which a civilian official of the Department of Defense, 
     who has been confirmed by the Senate, determines that the 
     award of such contract is in the interest of the national 
     defense.
       Sec. 8047. (a) Except as provided in subsection (b) and 
     (c), none of the funds made available by this Act may be 
     used--
       (1) to establish a field operating agency; or
       (2) to pay the basic pay of a member of the Armed Forces or 
     civilian employee of the department who is transferred or 
     reassigned from a headquarters activity if the member or 
     employee's place of duty remains at the location of that 
     headquarters.
       (b) The Secretary of Defense or Secretary of a military 
     department may waive the limitations in subsection (a), on a 
     case-by-case basis, if the Secretary determines, and 
     certifies to the Committees on Appropriations of the House of 
     Representatives and Senate that the granting of the waiver 
     will reduce the personnel requirements or the financial 
     requirements of the department.
       (c) This section does not apply to field operating agencies 
     funded within the National Foreign Intelligence Program.


                     (including transfer of funds)

       Sec. 8048. (a) Upon a determination by the Secretary of the 
     Navy that the vessel USNS Capable (T-AGOS 16) is no longer 
     needed by the Navy, the Secretary shall transfer such vessel 
     to the National Oceanic and Atmospheric Administration as an 
     exploration and research ship.
       (b) Upon a transfer of the vessel USNS Capable (T-AGOS 16) 
     under subsection (a), the Secretary of the Navy shall 
     transfer to the Secretary of Commerce $18,000,000 out of 
     funds appropriated by title IV under the heading ``Research, 
     Development, Test and Evaluation, Navy''. The amount so 
     transferred shall be available to the National Oceanographic 
     and Atmospheric Administration for the conversion of the 
     vessel for use as an exploration and research ship.


                             (rescissions)

       Sec. 8049. Of the funds appropriated in Department of 
     Defense Appropriations Acts, the following funds are hereby 
     rescinded from the following accounts and programs in the 
     specified amounts:
       ``Shipbuilding and Conversion, Navy, 2002/2006'', 
     $14,000,000;
       ``Former Soviet Union Threat Reduction, 2003/2005'', 
     $50,000,000;
       ``Aircraft Procurement, Navy, 2003/2005'', $50,000,000;
       ``Aircraft Procurement, Air Force, 2003/2005'', 
     $50,000,000;
       ``Other Procurement, Army, 2004/2006'', $16,000,000;
       ``Aircraft Procurement, Navy, 2004/2006'', $32,800,000;
       ``Shipbuilding and Conversion, Navy, 2004/2008'', 
     $10,300,000;
       ``Weapons Procurement, Navy, 2004/2006'', $25,200,000;
       ``Other Procurement, Navy, 2004/2006'', $41,700,000;
       ``Procurement, Marine Corps, 2004/2006'', $40,200,000;
       ``Other Procurement, Air Force, 2004/2006'', $100,000,000;
       ``Procurement, Defense-Wide, 2004/2006'', $34,571,000;
       ``Research, Development, Test and Evaluation, Army, 2004/
     2005'', $30,000,000;
       ``Research, Development, Test and Evaluation, Navy, 2004/
     2005'', $148,500,000;
       ``Research, Development, Test and Evaluation, Air Force, 
     2004/2005'', $57,666,000; and
       ``Research, Development, Test and Evaluation, Defense-Wide, 
     2004/2005'', $78,700,000.
       Sec. 8050. None of the funds available in this Act may be 
     used to reduce the authorized positions for military 
     (civilian) technicians of the Army National Guard, the Air 
     National Guard, Army Reserve and Air Force Reserve for the 
     purpose of applying any administratively imposed civilian 
     personnel ceiling, freeze, or reduction on military 
     (civilian) technicians, unless such reductions are a direct 
     result of a reduction in military force structure.
       Sec. 8051. None of the funds appropriated or otherwise made 
     available in this Act may be obligated or expended for 
     assistance to the Democratic People's Republic of North Korea 
     unless specifically appropriated for that purpose.
       Sec. 8052. During the current fiscal year and hereafter, 
     funds appropriated in this Act are available to compensate 
     members of the National Guard for duty performed pursuant to 
     a plan submitted by a Governor of a State and approved by the 
     Secretary of Defense under section 112 of title 32, United 
     States Code: Provided, That during the performance of such 
     duty, the members of the National Guard shall be under State 
     command and control: Provided further, That such duty shall 
     be treated as full-time National Guard duty for purposes of 
     sections 12602(a)(2) and (b)(2) of title 10, United States 
     Code.
       Sec. 8053. Funds appropriated in this Act for operation and 
     maintenance of the Military Departments, Combatant Commands 
     and Defense Agencies shall be available for reimbursement of 
     pay, allowances and other expenses which would otherwise be 
     incurred against appropriations for the National Guard and 
     Reserve when members of the National Guard and Reserve 
     provide intelligence or counterintelligence support to 
     Combatant Commands, Defense Agencies and Joint Intelligence 
     Activities, including the activities and programs included 
     within the National Foreign Intelligence Program (NFIP), the 
     Joint Military Intelligence Program (JMIP), and the Tactical 
     Intelligence and Related Activities (TIARA) aggregate: 
     Provided, That nothing in this section authorizes deviation 
     from established Reserve and National Guard personnel and 
     training procedures.
       Sec. 8054. During the current fiscal year, none of the 
     funds appropriated in this Act may be used to reduce the 
     civilian medical and medical support personnel assigned to 
     military treatment facilities below the September 30, 2003 
     level: Provided, That the Service Surgeons General may waive 
     this section by certifying to the congressional defense 
     committees that the beneficiary population is declining in 
     some catchment areas and civilian strength reductions may be 
     consistent with responsible resource stewardship and 
     capitation-based budgeting.
       Sec. 8055. (a) Limitation on Pentagon Renovation Costs.--
     Not later than the date each year on which the President 
     submits to Congress the budget under section 1105 of title 
     31, United States Code, the Secretary of Defense shall submit 
     to Congress a certification that the total cost for the 
     planning, design, construction, and installation of equipment 
     for the renovation of wedges 2 through 5 of the Pentagon 
     Reservation, cumulatively, will not exceed four times the 
     total cost for the planning, design, construction, and 
     installation of equipment for the renovation of wedge 1.
       (b) Annual Adjustment.--For purposes of applying the 
     limitation in subsection (a), the Secretary shall adjust the 
     cost for the renovation of wedge 1 by any increase or 
     decrease in costs attributable to economic inflation, based 
     on the most recent economic assumptions issued by the Office 
     of Management and Budget for use in preparation of the budget 
     of the United States under section 1104 of title 31, United 
     States Code.
       (c) Exclusion of Certain Costs.--For purposes of 
     calculating the limitation in subsection (a), the total cost 
     for wedges 2 through 5 shall not include--
       (1) any repair or reconstruction cost incurred as a result 
     of the terrorist attack on the Pentagon that occurred on 
     September 11, 2001;
       (2) any increase in costs for wedges 2 through 5 
     attributable to compliance with new requirements of Federal, 
     State, or local laws; and
       (3) any increase in costs attributable to additional 
     security requirements that the Secretary of Defense considers 
     essential to provide a safe and secure working environment.
       (d) Certification Cost Reports.--As part of the annual 
     certification under subsection (a), the Secretary shall 
     report the projected cost (as of the time of the 
     certification) for--
       (1) the renovation of each wedge, including the amount 
     adjusted or otherwise excluded for such wedge under the 
     authority of paragraphs (2) and (3) of subsection (c) for the 
     period covered by the certification; and
       (2) the repair and reconstruction of wedges 1 and 2 in 
     response to the terrorist attack on the Pentagon that 
     occurred on September 11, 2001.
       (e) Duration of Certification Requirement.--The requirement 
     to make an annual certification under subsection (a) shall 
     apply until the Secretary certifies to Congress that the 
     renovation of the Pentagon Reservation is completed.

[[Page 16413]]

       Sec. 8056. Notwithstanding any other provision of law, that 
     not more than 35 percent of funds provided in this Act for 
     environmental remediation may be obligated under indefinite 
     delivery/indefinite quantity contracts with a total contract 
     value of $130,000,000 or higher.
       Sec. 8057. (a) None of the funds available to the 
     Department of Defense for any fiscal year for drug 
     interdiction or counter-drug activities may be transferred to 
     any other department or agency of the United States except as 
     specifically provided in an appropriations law.
       (b) None of the funds available to the Central Intelligence 
     Agency for any fiscal year for drug interdiction and counter-
     drug activities may be transferred to any other department or 
     agency of the United States except as specifically provided 
     in an appropriations law.


                          (transfer of funds)

       Sec. 8058. Appropriations available under the heading 
     ``Operation and Maintenance, Defense-Wide'' for the current 
     fiscal year and hereafter for increasing energy and water 
     efficiency in Federal buildings may, during their period of 
     availability, be transferred to other appropriations or funds 
     of the Department of Defense for projects related to 
     increasing energy and water efficiency, to be merged with and 
     to be available for the same general purposes, and for the 
     same time period, as the appropriation or fund to which 
     transferred.
       Sec. 8059. None of the funds appropriated by this Act may 
     be used for the procurement of ball and roller bearings other 
     than those produced by a domestic source and of domestic 
     origin: Provided, That the Secretary of the military 
     department responsible for such procurement may waive this 
     restriction on a case-by-case basis by certifying in writing 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate, that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes: Provided further, That this restriction 
     shall not apply to the purchase of ``commercial items'', as 
     defined by section 4(12) of the Office of Federal Procurement 
     Policy Act, except that the restriction shall apply to ball 
     or roller bearings purchased as end items.
       Sec. 8060. Notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to American Samoa, and 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to the Indian Health 
     Service when it is in conjunction with a civil-military 
     project.
       Sec. 8061. None of the funds in this Act may be used to 
     purchase any supercomputer which is not manufactured in the 
     United States, unless the Secretary of Defense certifies to 
     the congressional defense committees that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes that is not available from United States 
     manufacturers.
       Sec. 8062. Notwithstanding any other provision of law, 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. 8063. None of the funds made available in this or any 
     other Act may be used to pay the salary of any officer or 
     employee of the Department of Defense who approves or 
     implements the transfer of administrative responsibilities or 
     budgetary resources of any program, project, or activity 
     financed by this Act to the jurisdiction of another Federal 
     agency not financed by this Act without the express 
     authorization of Congress: Provided, That this limitation 
     shall not apply to transfers of funds expressly provided for 
     in Defense Appropriations Acts, or provisions of Acts 
     providing supplemental appropriations for the Department of 
     Defense.
       Sec. 8064. (a) Limitation on Transfer of Defense Articles 
     and Services.--Notwithstanding any other provision of law, 
     none of the funds available to the Department of Defense for 
     the current fiscal year may be obligated or expended to 
     transfer to another nation or an international organization 
     any defense articles or services (other than intelligence 
     services) for use in the activities described in subsection 
     (b) unless the congressional defense committees, the 
     Committee on International Relations of the House of 
     Representatives, and the Committee on Foreign Relations of 
     the Senate are notified 15 days in advance of such transfer.
       (b) Covered Activities.--This section applies to--
       (1) any international peacekeeping or peace-enforcement 
     operation under the authority of chapter VI or chapter VII of 
     the United Nations Charter under the authority of a United 
     Nations Security Council resolution; and
       (2) any other international peacekeeping, peace-
     enforcement, or humanitarian assistance operation.
       (c) Required Notice.--A notice under subsection (a) shall 
     include the following:
       (1) A description of the equipment, supplies, or services 
     to be transferred.
       (2) A statement of the value of the equipment, supplies, or 
     services to be transferred.
       (3) In the case of a proposed transfer of equipment or 
     supplies--
       (A) a statement of whether the inventory requirements of 
     all elements of the Armed Forces (including the reserve 
     components) for the type of equipment or supplies to be 
     transferred have been met; and
       (B) a statement of whether the items proposed to be 
     transferred will have to be replaced and, if so, how the 
     President proposes to provide funds for such replacement.
       Sec. 8065. To the extent authorized by subchapter VI of 
     chapter 148 of title 10, United States Code, for the current 
     fiscal year and hereafter 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. 8066. 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. 8067. Funds appropriated for the Department of Defense 
     and for intelligence activities in this Act are available for 
     transfer to the Department of State as remittance for a fee 
     charged by the Department of State for fiscal year 2005 for 
     the maintenance, upgrade, or construction of United States 
     diplomatic facilities only to the extent that the amount of 
     the fee so charged (when added to other amounts of such fees 
     previously charged for that fiscal year) exceeds the total 
     amount of the unreimbursed costs incurred by the departments 
     and agencies funded by this Act during that fiscal year in 
     providing goods and services to the Department of State.


                     (including transfer of funds)

       Sec. 8068. 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. 8069. 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. 8070. Hereafter, funds appropriated for Operation and 
     maintenance and for the Defense Health Program in this Act, 
     and in future appropriations acts for the Department of 
     Defense,

[[Page 16414]]

     for supervision and administration costs for facilities 
     maintenance and repair, minor construction, or design 
     projects, or any planning studies, environmental assessments, 
     or similar activities related to installation support 
     functions, may be obligated at the time the reimbursable 
     order is accepted by the performing activity: Provided, That 
     for the purpose of this section, supervision and 
     administration costs includes all in-house Government cost.
       Sec. 8071. (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. 8072. 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. 8073. 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. 8074. 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. 8075. (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. 8076. (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. 8077. (a) The Secretary of Defense, in coordination 
     with the Secretary of Health and Human Services, may carry 
     out a program to distribute surplus dental and medical 
     equipment of the Department of Defense, at no cost to the 
     Department of Defense, to Indian Health Service facilities 
     and to federally-qualified health centers (within the meaning 
     of section 1905(l)(2)(B) of the Social Security Act (42 
     U.S.C. 1396d(l)(2)(B))).
       (b) In carrying out this provision, the Secretary of 
     Defense shall give the Indian Health Service a property 
     disposal priority equal to the priority given to the 
     Department of Defense and its twelve special screening 
     programs in distribution of surplus dental and medical 
     supplies and equipment.
       Sec. 8078. 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. 8079. 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. 8080. Notwithstanding any other provision of law, 
     funds appropriated in this Act under the heading ``Research, 
     Development, Test and Evaluation, Defense-Wide'' for any 
     advanced concept technology demonstration project may only be 
     obligated 30 days after a report, including a description of 
     the project, the planned acquisition and transition strategy 
     and its estimated annual and total cost, has been provided in 
     writing to the congressional defense committees: Provided, 
     That the Secretary of Defense may waive this restriction on a 
     case-by-case basis by certifying to the congressional defense 
     committees that it is in the national interest to do so.
       Sec. 8081. The Secretary of Defense shall provide a 
     classified quarterly report, beginning 30 days after 
     enactment of this Act, to the House and Senate Appropriations 
     Committees, Subcommittees on Defense on certain matters as 
     directed in the classified annex accompanying this Act.
       Sec. 8082. 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, and research, 
     development, test and evaluation accounts of the Department 
     of Defense which are current when the refunds are received.
       Sec. 8083. (a) Registering Financial Management Information 
     Technology Systems With DOD Chief Information Officer.--None 
     of the funds appropriated in this Act may be used for a 
     mission critical or mission essential financial management 
     information technology system (including a system funded by 
     the defense working capital fund) that is not registered with 
     the Chief Information Officer of the Department of Defense. A 
     system shall be considered to be registered with that officer 
     upon the furnishing to that officer of notice of the system, 
     together with such information concerning the system as the 
     Secretary of Defense may prescribe. A financial management 
     information technology system shall be considered a mission 
     critical or mission essential information technology system 
     as defined by the Under Secretary of Defense (Comptroller).
       (b) Certifications as to Compliance With Financial 
     Management Modernization Plan.--
       (1) During the current fiscal year, a financial management 
     automated information system, a mixed information system 
     supporting financial and non-financial systems, or a system 
     improvement of more than $1,000,000 may not receive Milestone 
     A approval, Milestone B approval, or full rate production, or 
     their equivalent, within the Department of Defense until the 
     Under Secretary of Defense (Comptroller) certifies, with 
     respect to that milestone, that the system is being developed 
     and managed in accordance with the Department's Financial 
     Management Modernization Plan. The Under Secretary of Defense 
     (Comptroller) may require additional certifications, as 
     appropriate, with respect to any such system.
       (2) The Chief Information Officer shall provide the 
     congressional defense committees timely notification of 
     certifications under paragraph (1).
       (c) Certifications as to Compliance With Clinger-Cohen 
     Act.--
       (1) During the current fiscal year, a major automated 
     information system may not receive

[[Page 16415]]

     Milestone A approval, Milestone B approval, or full rate 
     production approval, or their equivalent, within the 
     Department of Defense until the Chief Information Officer 
     certifies, with respect to that milestone, that the system is 
     being developed in accordance with the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1401 et seq.). The Chief Information Officer 
     may require additional certifications, as appropriate, with 
     respect to any such system.
       (2) The Chief Information Officer shall provide the 
     congressional defense committees timely notification of 
     certifications under paragraph (1). Each such notification 
     shall include, at a minimum, the funding baseline and 
     milestone schedule for each system covered by such a 
     certification and confirmation that the following steps have 
     been taken with respect to the system:
       (A) Business process reengineering.
       (B) An analysis of alternatives.
       (C) An economic analysis that includes a calculation of the 
     return on investment.
       (D) Performance measures.
       (E) An information assurance strategy consistent with the 
     Department's Global Information Grid.
       (d) Definitions.--For purposes of this section:
       (1) The term ``Chief Information Officer'' means the senior 
     official of the Department of Defense designated by the 
     Secretary of Defense pursuant to section 3506 of title 44, 
     United States Code.
       (2) The term ``information technology system'' has the 
     meaning given the term ``information technology'' in section 
     5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
       Sec. 8084. 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. 8085. 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 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. 8086. 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. 8087. 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. 8088. Up to $3,000,000 of the funds appropriated under 
     the heading ``Operation and Maintenance, Navy'' in this Act 
     for the Pacific Missile Range Facility may be made available 
     to contract for the repair, maintenance, and operation of 
     adjacent off-base water, drainage, and flood control systems, 
     electrical upgrade to support additional missions critical to 
     base operations, and support for a range footprint expansion 
     to further guard against encroachment.
       Sec. 8089. 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. 8090. (a) Of the amounts appropriated in this Act 
     under the heading, ``Research, Development, Test and 
     Evaluation, Defense-Wide'', $60,000,000 shall remain 
     available until expended: Provided, That notwithstanding any 
     other provision of law, the Secretary of Defense is 
     authorized to transfer such funds to other activities of the 
     Federal Government.
       (b) Of the amounts appropriated in this Act under the 
     heading, ``Operation and Maintenance, Army'', $185,000,000 
     shall remain available until expended: Provided, That 
     notwithstanding any other provision of law, the Secretary of 
     Defense is authorized to transfer such funds to other 
     activities of the Federal Government: Provided further, That 
     the Secretary of Defense is authorized to enter into and 
     carry out contracts for the acquisition of real property, 
     construction, personal services, and operations related to 
     projects described in further detail in the Classified Annex 
     accompanying the Department of Defense Appropriations Act, 
     2005, consistent with the terms and conditions set forth 
     therein: Provided further, That contracts entered into under 
     the authority of this section may provide for such 
     indemnification as the Secretary determines to be necessary: 
     Provided further, That projects authorized by this section 
     shall comply with applicable Federal, State, and local law to 
     the maximum extent consistent with the national security, as 
     determined by the Secretary of Defense.
       Sec. 8091. 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 2005.
       Sec. 8092. (a) Of the amounts appropriated in this Act 
     under the heading ``Research, Development, Test and 
     Evaluation, Navy'', $214,678,000 shall be available for the 
     construction of the first prototype vessel under the Littoral 
     Combat Ship program.
       (b) None of the funds provided in this Act may be obligated 
     to prepare a fiscal year 2006 budget request for a third 
     vessel under the Littoral Combat Ship program in fiscal year 
     2006: Provided, That funds for the second vessel shall be for 
     a second source supplier: Provided further, That all 
     subsequent ships shall be purchased with ``Shipbuilding and 
     Conversion, Navy'' funds beginning in fiscal year 2007.
       Sec. 8093. In addition to amounts provided elsewhere in 
     this Act, $2,000,000 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. 8094. Amounts appropriated in title II of this Act are 
     hereby reduced by $300,000,000 to reflect savings 
     attributable to efficiencies and management improvements in 
     the funding of miscellaneous or other contracts in the 
     military departments, as follows:
       (1) From ``Operation and Maintenance, Army'', $66,700,000.
       (2) From ``Operation and Maintenance, Navy'', $77,900,000.
       (3) From ``Operation and Maintenance, Marine Corps'', 
     $6,100,000.
       (4) From ``Operation and Maintenance, Air Force'', 
     $149,300,000.
       Sec. 8095. The total amount appropriated or otherwise made 
     available in this Act is hereby reduced by $500,000,000 to 
     limit excessive growth in the procurement of advisory and 
     assistance services, to be distributed as follows:
       ``Operation and Maintenance, Army'', $25,000,000;
       ``Operation and Maintenance, Defense-Wide'', $225,000,000;
       ``Research, Development, Test and Evaluation, Army'', 
     $50,000,000; and
       ``Research, Development, Test and Evaluation, Defense-
     Wide'', $200,000,000.


                     (including transfer of funds)

       Sec. 8096. Of the amounts appropriated in this Act under 
     the heading ``Research, Development, Test and Evaluation, 
     Defense-Wide'', $155,290,000 shall be made available for the 
     Arrow missile defense program: Provided, That of this amount, 
     $68,000,000 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. 8097. Notwithstanding any other provision of law, of 
     the amounts provided in this Act and in Public Law 108-87 
     under the heading ``Research, Development, Test and 
     Evaluation, Navy'', $1,500,000, and $500,000, respectively, 
     shall be provided as a grant (or grants) to the California 
     Central Coast Research Partnership

[[Page 16416]]

     (C3RP) through the California Polytechnic State University 
     Foundation: Provided, That the Secretary of the Navy shall 
     make said grant (or grants) within 90 days of the enactment 
     of this Act.


                     (including transfer of funds)

       Sec. 8098. (a) In addition to amounts provided elsewhere in 
     this Act, $34,000,000 is hereby appropriated for ``Aircraft 
     Procurement, Navy'': Provided, That these funds shall be 
     available only for transfer to the Coast Guard for mission 
     essential equipment for Coast Guard HC-130J aircraft.
       (b) In addition to amounts appropriated or otherwise made 
     available in this Act, there is hereby appropriated 
     $40,000,000, for ``Operation and Maintenance, Defense-Wide'': 
     Provided, That, of the funds provided herein, $30,000,000, to 
     remain available until expended, shall be transferred within 
     15 days of the enactment of this Act to the Department of 
     Agriculture, Forest Service ``Wildland Fire Management'' 
     account and shall be merged with other funds in this account 
     and shall be made available for hazardous fuels reduction, 
     hazard mitigation, and rehabilitation activities of the 
     Forest Service in the San Bernardino National Forest, and 
     $10,000,000, to remain available until expended, shall be 
     transferred within 15 days of the enactment of this Act to 
     the Forest Service, ``Capital Improvement and Maintenance'' 
     account and shall be made available to construct a wildfire 
     management training facility in San Bernardino County: 
     Provided further, That the transfer authority provided in 
     this section is in addition to any other transfer authority 
     available to the Department of Defense.


                     (including transfer of funds)

       Sec. 8099. Of the amounts appropriated in this Act under 
     the heading ``Shipbuilding and Conversion, Navy'', 
     $484,390,000 shall be available until September 30, 2005, 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, 
     1996/2005'':
       LPD-17 Amphibious Transport Dock Ship Program, $55,000,000.
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1999/2005'':
       New SSN, $10,000,000;
       LPD-17 Amphibious Transport Dock Ship Program, $38,100,000.
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2000/2005'':
       DDG-51 Destroyer Program, $44,963,000;
       LPD-17 Amphibious Transport Dock Ship Program, 
     $171,681,000.
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2001/2005'':
       DDG-51 Destroyer Program, $83,316,000;
       New SSN, $67,330,000.
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2002/2005'':
       LCAC SLEP, $2,100,000.
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     2003/2005'':
       LCAC SLEP, $11,900,000:
     Provided further, That section 126 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136; 
     117 Stat. 1410; 10 U.S.C. 7291 note) is repealed.
       Sec. 8100. 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. 8101. None of the funds available to the Department of 
     Defense may be obligated to implement any action which alters 
     the command responsibility or permanent assignment of forces 
     until 270 days after such plan has been provided to the 
     congressional defense committees.
       Sec. 8102. 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. 8103. 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 2005 until the enactment of the Intelligence 
     Authorization Act for fiscal year 2005.
       Sec. 8104. In addition to funds made available elsewhere in 
     this Act, $5,500,000 is hereby appropriated and shall remain 
     available until expended to provide assistance, by grant or 
     otherwise (such as, but not limited to, the provision of 
     funds for repairs, maintenance, construction, and/or for the 
     purchase of information technology, text books, teaching 
     resources), to public schools that have unusually high 
     concentrations of special needs military dependents enrolled: 
     Provided, That in selecting school systems to receive such 
     assistance, special consideration shall be given to school 
     systems in States that are considered overseas assignments, 
     and all schools within these school systems shall be eligible 
     for assistance: Provided further, That up to 2 percent of the 
     total appropriated funds under this section shall be 
     available to support the administration and execution of the 
     funds or program and/or events that promote the purpose of 
     this appropriation (e.g. payment of travel and per diem of 
     school teachers attending conferences or a meeting that 
     promotes the purpose of this appropriation and/or consultant 
     fees for on-site training of teachers, staff, or Joint 
     Venture Education Forum (JVEF) Committee members): 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: Provided further, 
     That to the extent a Federal agency provides this assistance, 
     by contract, grant, or otherwise, it may accept and expend 
     non-Federal funds in combination with these Federal funds to 
     provide assistance for the authorized purpose, if the non-
     Federal entity requests such assistance and the non-Federal 
     funds are provided on a reimbursable basis.
       Sec. 8105. The total amount appropriated in title IV of 
     this Act is hereby reduced by $197,500,000 to reduce cost 
     growth in information technology development and 
     modernization, to be derived as follows:
       (1) From ``Other Procurement, Army'', $39,500,000.
       (2) From ``Other Procurement, Navy'', $10,800,000.
       (3) From ``Other Procurement, Air Force'', $49,000,000.
       (4) From ``Procurement, Defense-Wide'', $20,100,000.
       (5) From ``Research, Development, Test and Evaluation, 
     Army'', $3,500,000.
       (6) From ``Research, Development, Test and Evaluation, 
     Navy'', $10,800,000.
       (7) From ``Research, Development, Test and Evaluation, Air 
     Force'', $3,500,000.
       (8) From ``Research, Development, Test and Evaluation, 
     Defense-Wide'', $60,300,000.
       Sec. 8106. None of the funds in this Act may be used to 
     initiate a new start program without prior written 
     notification to the Office of Secretary of Defense and the 
     congressional defense committees.
       Sec. 8107. The amounts appropriated in title II of this Act 
     are hereby reduced by $316,000,000 to reflect cash balance 
     and rate stabilization adjustments in Department of Defense 
     Working Capital Funds, as follows:
       (1) From ``Operation and Maintenance, Navy'', $150,000,000.
       (2) From ``Operation and Maintenance, Air Force'', 
     $166,000,000.
       Sec. 8108. (a) In addition to the amounts provided 
     elsewhere in this Act, the amount of $6,000,000 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 $6,000,000 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. 8109. 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 Future Force cannon 
     and resupply vehicle program (NLOS-C) in order to field this 
     system in fiscal year 2010, consistent with the broader plan 
     to field the Future Combat System (FCS) in fiscal year 2010: 
     Provided, That if the Army is precluded from fielding the FCS 
     program by fiscal year 2010, then the Army shall develop the 
     NLOS-C independent of the broader FCS development timeline to 
     achieve fielding by fiscal year 2010. In addition the Army 
     will deliver eight (8) combat operational pre-production 
     NLOS-C systems by the end of calendar year 2008. These 
     systems shall be in addition to those systems necessary for 
     developmental and operational testing: Provided further, That 
     the Army shall ensure that budgetary and programmatic plans 
     will provide for no fewer than seven (7) Stryker Brigade 
     Combat Teams.
       Sec. 8110. Of the funds made available in this Act, not 
     less than $87,900,000 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'', $55,300,000 shall be available from ``Operation and 
     Maintenance, Air Force'', and $28,900,000 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 2005: Provided further, That the Secretary 
     of Defense shall include in the Air Force budget request for 
     fiscal year 2006 amounts sufficient to maintain a B-52 force 
     totaling 94 aircraft.

[[Page 16417]]

       Sec. 8111. Of the funds made available under the heading 
     ``Operation and Maintenance, Air Force'', $9,000,000 shall be 
     available to realign railroad track on Elmendorf Air Force 
     Base and Fort Richardson: Provided, That of the funds made 
     available under the heading ``Operation and Maintenance, Air 
     Force'', $14,000,000 shall be available for engineering and 
     environment studies necessary to extend the railroad to 
     Stryker Brigade Combat Team training areas north of Fort 
     Wainwright, Alaska: Provided further, That the Secretary of 
     the Air Force is authorized, using funds available under the 
     heading ``Operation and Maintenance, Air Force'', to complete 
     a phased repair project, which repairs may include upgrades 
     and additions, to the infrastructure of the operational 
     ranges managed by the Air Force in Alaska. The total cost of 
     such phased projects shall not exceed $32,000,000.


                          (Transfer of Funds)

       Sec. 8112. 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. 8113. In addition to the amounts appropriated or 
     otherwise made available elsewhere in this Act, $51,425,000 
     is hereby appropriated to the Department of Defense, to 
     remain available until September 30, 2005: Provided, That the 
     Secretary of Defense shall make grants in the amounts 
     specified as follows: $5,000,000 to the Intrepid Sea-Air-
     Space Foundation; $1,875,000 to the Presidio Trust only for 
     renovations of the parade field; $1,000,000 to the Fort 
     Ticonderoga Association; $8,500,000 to the Military Aviation 
     Museum of the Pacific; $10,000,000 to the Wings of Liberty 
     Military Museum at Fort Campbell; $2,550,000 to the United 
     Services Organization; $5,000,000 to the Galena IDEA Distance 
     Learning Program; $1,500,000 to the Wing Luke Asian Museum; 
     $8,000,000 to the Center for Applied Science and Engineering; 
     $1,000,000 to the Women in Military Service for America 
     Memorial Foundation; $2,000,000 to the American Red Cross 
     Greater Alleghenies Blood Services Center; $4,000,000 to the 
     Clarksville-Montgomery County School System; and $1,000,000 
     to the National Museum of Cavalry and Armor at Fort Knox.
       Sec. 8114. None of the funds appropriated in this Act under 
     the heading ``Overseas Contingency Operations Transfer 
     Account'' may be transferred or obligated for Department of 
     Defense expenses not directly related to the conduct of 
     overseas contingencies: Provided, That the Secretary of 
     Defense shall submit a report no later than 30 days after the 
     end of each fiscal quarter to the Committees on 
     Appropriations of the Senate and House of Representatives 
     that details any transfer of funds from the ``Overseas 
     Contingency Operations Transfer Account'': Provided further, 
     That the report shall explain any transfer for the 
     maintenance of real property, pay of civilian personnel, base 
     operations support, and weapon, vehicle or equipment 
     maintenance.
       Sec. 8115. For purposes of section 1553(b) of title 31, 
     United States Code, any subdivision of appropriations made in 
     this Act under the heading ``Shipbuilding and Conversion, 
     Navy'' shall be considered to be for the same purpose as any 
     subdivision under the heading ``Shipbuilding and Conversion, 
     Navy'' appropriations in any prior fiscal year, and the 1 
     percent limitation shall apply to the total amount of the 
     appropriation.
       Sec. 8116. The budget of the President for fiscal year 2006 
     submitted to the Congress pursuant to section 1105 of title 
     31, United States Code shall include separate budget 
     justification documents for costs of United States Armed 
     Forces' participation in contingency operations for the 
     Military Personnel accounts, the Operation and Maintenance 
     accounts, and the Procurement accounts: Provided, That these 
     documents shall include a description of the funding 
     requested for each contingency operation, for each military 
     service, to include all Active and Reserve components, and 
     for each appropriations account: Provided further, That these 
     documents shall include estimated costs for each element of 
     expense or object class, a reconciliation of increases and 
     decreases for each contingency operation, and programmatic 
     data including, but not limited to, troop strength for each 
     Active and Reserve component, and estimates of the major 
     weapons systems deployed in support of each contingency: 
     Provided further, That these documents shall include budget 
     exhibits OP-5 and OP-32 (as defined in the Department of 
     Defense Financial Management Regulation) for all contingency 
     operations for the budget year and the two preceding fiscal 
     years.
       Sec. 8117. 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.
       Sec. 8118. Notwithstanding any other provision of law, 
     section 2533a(f) of title 10, United States Code, shall 
     hereafter not apply to any fish, shellfish, or seafood 
     product. This section applies to contracts and subcontracts 
     for the procurement of commercial items notwithstanding 
     section 34 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 430).
       Sec. 8119. Of the amounts provided in title II of this Act 
     under the heading, ``Operation and Maintenance, Defense-
     Wide'', $20,000,000 is available for the Regional Defense 
     Counter-terrorism Fellowship Program, to fund the education 
     and training of foreign military officers, ministry of 
     defense civilians, and other foreign security officials, to 
     include United States military officers and civilian 
     officials whose participation directly contributes to the 
     education and training of these foreign students.
       Sec. 8120. None of the funds appropriated or made available 
     in this Act shall be used to reduce or disestablish the 
     operation of the 53rd Weather Reconnaissance Squadron of the 
     Air Force Reserve, if such action would reduce the WC-130 
     Weather Reconnaissance mission below the levels funded in 
     this Act: Provided, That the Air Force shall allow the 53rd 
     Weather Reconnaissance Squadron to perform other missions in 
     support of national defense requirements during the non-
     hurricane season.
       Sec. 8121. (a) Land Conveyances, Norton Air Force Base, 
     California.--
       (1) Forest service conveyance.--Subject to paragraph (2), 
     the Secretary of Agriculture shall convey to the Inland 
     Valley Development Agency all right, title, and interest of 
     the United States in and to a parcel of real property 
     consisting of approximately 3.74 acres designated as parcel 
     D-1 (including the former Air Force S-2 Headquarters 
     Building) on the former Norton Air Force Base, California.
       (2) As consideration for the transfer under paragraph (1), 
     the Inland Valley Development Agency shall execute a long-
     term ground lease with the Secretary of Agriculture, upon 
     terms acceptable to the Federal Aviation Administration, to 
     provide the United States Forest Service with a replacement 
     parcel of land of approximately 7.5 acres at the San 
     Bernardino International Airport adjacent to current 
     facilities of the Forest Service to be used for aeronautical 
     purposes in furtherance of wildfire prevention and 
     containment.
       (b) Air Force Conveyance.--
       (1) Subject to paragraph (2), the Secretary of the Air 
     Force shall convey to the Inland Valley Development Agency 
     all right, title, and interest of the United States in and to 
     certain parcels of real property, including improvements 
     thereon, located on or adjacent to the former Norton Air 
     Force Base, California, that as of the date of the enactment 
     of this Act have been determined through a record of decision 
     to be eligible to be transferred to, or held in trust for, 
     the San Manuel Band of Mission Indians.
       (2) The Secretary of the Air Force shall make a conveyance 
     under paragraph (1) with respect to any parcel of real 
     property to which that paragraph applies only upon delivery 
     to the Secretary of an instrument executed by the San Manuel 
     Band of Mission Indians that releases and extinguishes any 
     real property interest of the San Manuel Band of Mission 
     Indians in that parcel of real property.
       Sec. 8122. (a) The total amount appropriated or otherwise 
     made available in titles II, III and IV of this Act is hereby 
     reduced by $711,000,000 to reflect savings from assumed 
     management improvements, to be distributed as follows:
       ``Title II'', $200,000,000;
       ``Title III'', $300,000,000; and
       ``Title IV'', $211,000,000.
       (b) The Secretary of Defense shall allocate this reduction 
     proportionately to each budget activity, activity group, 
     subactivity group, and each program, project, and activity 
     within each applicable appropriation account.


                     (including transfer of funds)

       Sec. 8123. (a) The amount appropriated in title II for 
     ``Operation and Maintenance, Air Force'' is hereby reduced by 
     $967,200,000 to reflect cash balance and rate stabilization 
     adjustments in the Department of Defense Transportation 
     Working Capital Fund.
       (b) Not later than 270 days after the date of the enactment 
     of this Act, the Secretary of Defense shall transfer 
     $967,200,000 from the Department of Defense Transportation 
     Working Capital Fund to ``Operation and Maintenance, Air 
     Force'' to offset the reduction made by subsection (a). The 
     transfer required by this subsection is in addition to any 
     other transfer authority provided to the Department of 
     Defense.
       Sec. 8124. None of the funds provided in this Act shall be 
     available for integration of foreign intelligence information 
     unless the information has been lawfully collected and 
     processed during the conduct of authorized foreign 
     intelligence activities: Provided, That information 
     pertaining to United States persons shall only be handled in 
     accordance with protections provided in the Fourth Amendment 
     of the United States Constitution as implemented through 
     Executive Order No. 12333.
       Sec. 8125. Of the amount appropriated under the heading 
     ``Operation and Maintenance, Marine Corps'' for the Marine 
     Corps Air-Ground Task Force Training Center, Twenty Nine 
     Palms, California, $3,900,000 shall be available to the 
     Secretary of the Navy to enter into a contract, 
     notwithstanding any other provision of law, for the widening 
     of Adobe Road, which is used by members of the Marine Corps 
     stationed at the installation and their dependents, and for 
     construction of pedestrian and bike lanes for the road, to 
     provide for the safety of the Marines stationed at the 
     installation.
       Sec. 8126. In addition to amounts appropriated or otherwise 
     made available in this Act, there is hereby appropriated 
     $2,500,000, for ``Operation and Maintenance, Marine Corps'': 
     Provided, That the Secretary of the Navy shall make a grant 
     in that amount to the ``Hi-Desert Memorial Health Care 
     District'', Joshua Tree, California, for the purposes of 
     providing a capability for non-invasive assessment, 
     diagnostic

[[Page 16418]]

      testing and treatment in support of service personnel and 
     their families stationed at the Marine Corps Air-Ground Task 
     Force Training Center.
       Sec. 8127. (a) Land Conveyance, Army Reserve Training 
     Center, Wooster, Ohio.--The Secretary of the Army may convey, 
     without consideration, to the City of Wooster, Ohio, all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including improvements thereon, that 
     is located at 1676 Portage Road, Wooster, Ohio, and contains 
     a former Army Reserve Training Center.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the City of Wooster, Ohio.
       (c) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
       Sec. 8128. (a) At the time members of reserve components of 
     the Armed Forces are called or ordered to active duty under 
     section 12302(a) of title 10, United States Code, each member 
     shall be notified in writing of the expected period during 
     which the member will be mobilized.
       (b) The Secretary of Defense may waive the requirements of 
     subsection (a) in any case in which the Secretary determines 
     that it is necessary to do so to respond to a national 
     security emergency or to meet dire operational requirements 
     of the Armed Forces.


                     (including transfer of funds)

       Sec. 8129. The Secretary of the Navy may transfer funds 
     from any available Department of the Navy appropriation to 
     any available Navy ship construction appropriation for the 
     purpose of liquidating necessary changes resulting from 
     inflation, market fluctuations, or rate adjustments for any 
     ship construction program appropriated in law: Provided, That 
     the Secretary may transfer not to exceed $100,000,000 under 
     the authority provided by this section: Provided further, 
     That the funding transferred shall be available for the same 
     time period as the appropriation to which transferred: 
     Provided further, That the Secretary may not transfer any 
     funds until 30 days after the proposed transfer has been 
     reported to the Committee on Appropriations of the Senate and 
     the House of Representatives, unless sooner notified by the 
     Committees that there is no objection to the proposed 
     transfer: Provided further, That the transfer authority 
     provided by this section is in addition to any other transfer 
     authority contained elsewhere in this Act.
       Sec. 8130. The amounts appropriated in title II of this Act 
     are hereby reduced by $50,000,000 to reflect savings 
     attributable to the offsetting of payments to contractors for 
     the collection, pursuant to law, of unpaid taxes owed to the 
     United States, as follows:
       (1) From ``Operation and Maintenance, Army'', $11,000,000.
       (2) From ``Operation and Maintenance, Navy'', $13,000,000.
       (3) From ``Operation and Maintenance, Marine Corps'', 
     $1,000,000.
       (4) From ``Operation and Maintenance, Air Force'', 
     $25,000,000.
       Sec. 8131. The total amount appropriated in title IV is 
     hereby reduced by $350,000,000 to decrease amounts budgeted 
     in anticipation of the application of non-statutory funding 
     set asides: Provided, That this reduction shall be allocated 
     proportionately to each budgeted program, program element, 
     project, and activity: Provided further, That funds made 
     available for programs of the National Foreign Intelligence 
     Program (NFIP) are exempt from the application of this 
     provision.


                     (including transfer of funds)

       Sec. 8132. Tanker Replacement Transfer Fund.--In addition 
     to funds made available elsewhere in this Act, there is 
     hereby appropriated $100,000,000, to remain available until 
     transferred: Provided, That these funds are appropriated to 
     the ``Tanker Replacement Transfer Fund'' (referred to as 
     ``the Fund'' elsewhere in this section), which is hereby 
     established in the Treasury: Provided further, That the 
     Secretary of the Air Force may transfer amounts in the Fund 
     to ``Operation and Maintenance, Air Force'', ``Aircraft 
     Procurement, Air Force'', and ``Research, Development, Test 
     and Evaluation, Air Force'', only for the purposes of 
     proceeding with a tanker acquisition program: Provided 
     further, That funds transferred shall be merged with and be 
     available for the same purposes and for the same time period 
     as the appropriation or fund to which transferred: Provided 
     further, That this transfer authority is in addition to any 
     other transfer authority available to the Department of 
     Defense: Provided further, That the Secretary of the Air 
     Force shall, not fewer than 15 days prior to making transfers 
     using funds provided in this section, notify the 
     congressional defense committees in writing of the details of 
     any such transfer: Provided further, That the Secretary shall 
     submit a report no later than 30 days after the end of each 
     fiscal quarter to the congressional defense committees 
     summarizing the details of the transfer of funds from this 
     appropriation.
       Sec. 8133. None of the funds appropriated or otherwise made 
     available by this Act may be used to amend or cancel, or 
     implement any amendment or cancellation of, Department of 
     Defense Directive 1344.7, ``Personal Commercial Solicitation 
     on DOD Installations'', until after the end of the 90-day 
     period beginning on the date on which the report containing 
     the results of the investigation regarding insurance premium 
     allotment processing, which is underway as of the date of the 
     enactment of this Act, is submitted to the congressional 
     defense committees (as defined in section 101(a)(16) of title 
     10, United States Code), the Committee on Government Reform 
     of the House of Representatives, and the Committee on 
     Governmental Affairs of the Senate.
       Sec. 8134. The Secretary of Defense shall provide a report 
     to the congressional defense committees not later than 
     October 15, 2004, that addresses how the Department of 
     Defense (DOD) is improving the dud rate of cluster munitions 
     to meet existing DOD policies. This report shall address: (1) 
     the types and quantities of munitions systems that employ 
     cluster munitions presently in DOD's inventory that do and do 
     not meet the 1-percent dud rate policy; (2) DOD efforts to 
     ensure the development of cluster munitions that meet the 1-
     percent dud rate policy, including a list of programs funded 
     in fiscal year 2005; and (3) a schedule describing the DOD 
     cluster munitions inventory profile from the present until 
     the time this inventory will meet the 1-percent dud rate 
     policy.
       Sec. 8135. Up to $2,600,000 of the funds appropriated under 
     the heading, ``Operation and Maintenance, Navy'' in this Act 
     may be made available to contract for the installation, 
     repair, maintenance, and operation of on-base and adjacent 
     off-base drainage and flood control systems critical to base 
     operations and the public health and safety of community 
     residents in the vicinity of the Naval Magazine Lualualei.
       Sec. 8136. From funds provided under the heading 
     ``Operation and Maintenance, Navy'', the Secretary of the 
     Navy may make a grant in the amount of $2,100,000 to the 
     Chicago Public Schools for establishment of a Naval Military 
     Academy High School, Chicago, Illinois, in partnership with 
     the Great Lakes Naval Training Center.
       Sec. 8137. Of the amount appropriated by title III under 
     the heading ``Aircraft Procurement, Air Force'', $880,000 
     shall be available to the Secretary of the Air Force for a 
     grant to Rocky Mountain College, Montana, for the purchase of 
     three Piper aircraft, and an aircraft simulator, for support 
     of aviation training.
       Sec. 8138. It is the sense of the Senate that--
       (1) any request for funds for a fiscal year for an ongoing 
     military operation overseas, including operations in 
     Afghanistan and Iraq, should be included in the annual budget 
     of the President for such fiscal year as submitted to 
     Congress under section 1105(a) of title 31, United States 
     Code; and
       (2) any funds provided for such fiscal year for such a 
     military operation should be provided in appropriations Acts 
     for such fiscal year through appropriations to specific 
     accounts set forth in such Acts.
       Sec. 8139. Notwithstanding any other provision of law, the 
     Secretary of the Air Force may, using funds available to the 
     Air Force, demolish or provide for the demolition of any 
     facilities or other improvements on real property at the 
     former Wurtsmith Air Force Base.
       Sec. 8140. (a) The total amount appropriated or otherwise 
     made available in this Act is hereby reduced by $768,100,000 
     to reflect excessive unobligated balances, to be distributed 
     as follows:
       ``Operation and Maintenance, Army'', $160,800,000;
       ``Operation and Maintenance, Navy'', $171,900,000;
       ``Operation and Maintenance, Marine Corps'', $15,700,000;
       ``Operation and Maintenance, Air Force'', $142,400,000; and
       ``Operation and Maintenance, Defense-Wide'', $277,300,000.
       (b) The Secretary of Defense shall allocate this reduction 
     proportionately to each budget activity, activity group, 
     subactivity group, and each program, project, and activity 
     within each applicable appropriation account.
       Sec. 8141. (a) The total amount appropriated or otherwise 
     made available in title II of this Act is hereby reduced by 
     $100,000,000 to limit excessive growth in the travel and 
     transportation of persons.
       (b) The Secretary of Defense shall allocate this reduction 
     proportionately to each budget activity, activity group, 
     subactivity group, and each program, project, and activity 
     within each applicable appropriation account.


                        (including rescissions)

       Sec. 8142. 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:
       ``Aircraft Procurement, Navy, 2002/2004'', $50,000,000; and
       ``Aircraft Procurement, Air Force, 2002/2004'', 
     $50,000,000:
     Provided, That in addition to funds made available elsewhere 
     in this Act, $100,000,000 is hereby appropriated, in the 
     specified amounts to the following accounts:
       ``Aircraft Procurement, Navy, 2003/2005'', $50,000,000; and
       ``Aircraft Procurement, Air Force, 2003/2005'', 
     $50,000,000:
     Provided further, That this section shall become effective 
     upon enactment of this Act.

                                TITLE IX

                 ADDITIONAL WAR-RELATED APPROPRIATIONS

                    DEPARTMENT OF DEFENSE--MILITARY

                           MILITARY PERSONNEL

                        Military Personnel, Army

       For an additional amount for ``Military Personnel, Army'', 
     $915,700,000.

[[Page 16419]]



                        Military Personnel, Navy

       For an additional amount for ``Military Personnel, Navy'', 
     $27,700,000.

                    Military Personnel, Marine Corps

       For an additional amount for ``Military Personnel, Marine 
     Corps'', $241,700,000.

                     Military Personnel, Air Force

       For an additional amount for ``Military Personnel, Air 
     Force'', $64,900,000.

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

       For an additional amount for ``Operation and Maintenance, 
     Army'', $13,550,000,000.

                    Operation and Maintenance, Navy

       For an additional amount for ``Operation and Maintenance, 
     Navy'', $367,000,000.

                Operation and Maintenance, Marine Corps

       For an additional amount for ``Operation and Maintenance, 
     Marine Corps'', $1,665,000,000.

                  Operation and Maintenance, Air Force

       For an additional amount for ``Operation and Maintenance, 
     Air Force'', $419,000,000.

                Operation and Maintenance, Defense-Wide

       For an additional amount for ``Operation and Maintenance, 
     Defense-Wide'', $404,000,000.

                           Iraq Freedom Fund


                     (INCLUDING TRANSFER OF FUNDS)

       For an additional amount for ``Iraq Freedom Fund'', 
     $3,800,000,000, to remain available for transfer until 
     September 30, 2006, only to support operations in Iraq or 
     Afghanistan and classified activities: Provided, That the 
     Secretary of Defense may transfer the funds provided herein 
     to appropriations for military personnel; operation and 
     maintenance; Overseas Humanitarian, Disaster, and Civic Aid; 
     procurement; research, development, test and evaluation; the 
     Defense Health Program; and working capital funds: Provided 
     further, That of the amounts provided under this heading, 
     $1,800,000,000 shall only be for classified programs, 
     described in further detail in the classified annex 
     accompanying this Act: Provided further, That up to 
     $100,000,000 shall be available for the Department of 
     Homeland Security, ``United States Coast Guard, Operating 
     Expenses'': Provided further, That funds transferred shall be 
     merged with and be available for the same purposes and for 
     the same time period as the appropriation or fund to which 
     transferred: Provided further, That this transfer authority 
     is in addition to any other transfer authority available to 
     the Department of Defense: 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 Secretary of 
     Defense shall, not fewer than 5 days prior to making 
     transfers from this appropriation, notify the congressional 
     defense committees in writing of the details of any such 
     transfer: Provided further, That the Secretary shall submit a 
     report no later than 30 days after the end of each fiscal 
     quarter to the congressional defense committees summarizing 
     the details of the transfer of funds from this appropriation.

                              PROCUREMENT

        Procurement of Weapons and Tracked Combat Vehicles, Army

       For an additional amount for ``Procurement of Weapons and 
     Tracked Combat Vehicles, Army'', $50,000,000, to remain 
     available until September 30, 2007.

                    Procurement of Ammunition, Army

       For an additional amount for ``Procurement of Ammunition, 
     Army'', $110,000,000, to remain available until September 30, 
     2007.

                        Other Procurement, Army

       For an additional amount for ``Other Procurement, Army'', 
     $755,000,000, to remain available until September 30, 2007.

                       Aircraft Procurement, Navy

       For an additional amount for ``Aircraft Procurement, 
     Navy'', $79,000,000, to remain available until September 30, 
     2007.

            Procurement of Ammunition, Navy and Marine Corps

       For an additional amount for ``Procurement of Ammunition, 
     Navy and Marine Corps'', $30,000,000, to remain available 
     until September 30, 2007.

                       Procurement, Marine Corps

       For an additional amount for ``Procurement, Marine Corps'', 
     $150,000,000, to remain available until September 30, 2007.

                      Other Procurement, Air Force

       For an additional amount for ``Other Procurement, Air 
     Force'', $110,000,000, to remain available until September 
     30, 2007.

                       Procurement, Defense-Wide

       For an additional amount for ``Procurement, Defense-Wide'', 
     $50,000,000, to remain available until September 30, 2007.

                  National Guard and Reserve Equipment

       For an additional amount for ``National Guard and Reserve 
     Equipment'', $50,000,000, to remain available until September 
     30, 2007.

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       For an additional amount for ``Defense Working Capital 
     Funds'', $1,478,000,000.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For an additional amount for ``Defense Health Program'', 
     $683,000,000 for Operation and maintenance.

                      GENERAL PROVISIONS, TITLE IX

       Sec. 9001. Appropriations provided in this title are 
     available for obligation until September 30, 2005, unless 
     otherwise so provided in this title: Provided, That 
     notwithstanding any other provision of law or of this Act, 
     funds in this title are available for obligation, and 
     authorities in this title shall apply, upon enactment of this 
     Act.
       Sec. 9002. Notwithstanding any other provision of law or of 
     this Act, funds made available in this title are in addition 
     to amounts provided elsewhere in this Act.


                          (TRANSFER OF FUNDS)

       Sec. 9003. (a) Upon his determination that such action is 
     necessary in the national interest, the Secretary of Defense 
     may transfer between appropriations up to $1,500,000,000 of 
     the funds made available to the Department of Defense in this 
     title: Provided, That the Secretary shall notify the Congress 
     promptly of each transfer made pursuant to the authority in 
     this section: Provided further, That the authority provided 
     in this section is in addition to any other transfer 
     authority available to the Department of Defense and is 
     subject to the same terms and conditions as the authority 
     provided in section 8005 of this Act.
       (b) Section 8005 of the Department of Defense 
     Appropriations Act, 2004 (Public Law 108-87; 117 Stat. 1071), 
     is amended--
       (1) by striking ``$2,100,000,000'' and inserting in lieu 
     thereof ``$2,800,000,000''; and
       (2) by striking all after the third proviso and inserting 
     the following: ``: Provided further, That transfers among 
     military personnel appropriations shall not be taken into 
     account for purposes of the limitation on the amount of funds 
     that may be transferred under this section.''.
       (c) Section 168(a) of division H of the Consolidated 
     Appropriations Act, 2004 (Public Law 108-199; 118 Stat. 456), 
     is repealed upon enactment of this Act.
       Sec. 9004. Funds appropriated in this title, or made 
     available by the transfer of funds in or pursuant to this 
     title, 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).
       Sec. 9005. None of the funds provided in this title may be 
     used to finance programs or activities denied by Congress in 
     fiscal years 2004 and 2005 appropriations to the Department 
     of Defense or to initiate a procurement or research, 
     development, test and evaluation new start program without 
     prior written notification to the congressional defense 
     committees.
       Sec. 9006. Notwithstanding any other provision of law, from 
     funds made available in this title to the Department of 
     Defense for operation and maintenance, not to exceed 
     $500,000,000 may be used by the Secretary of Defense, with 
     the concurrence of the Secretary of State, to train, equip 
     and provide related assistance only to the New Iraqi Army and 
     the Afghan National Army to enhance their capability to 
     combat terrorism and to support U.S. military operations in 
     Iraq and Afghanistan: Provided, That such assistance may 
     include the provision of equipment, supplies, services, 
     training and funding: Provided further, That the authority to 
     provide assistance under this section is in addition to any 
     other authority to provide assistance to foreign nations: 
     Provided further, That the Secretary of Defense shall notify 
     the congressional defense committees, the Committee on 
     International Relations of the House of Representatives, and 
     the Committee on Foreign Relations of the Senate not less 
     than 15 days before providing assistance under the authority 
     of this section.
       Sec. 9007. From funds made available in this title to the 
     Department of Defense, not to exceed $300,000,000 may be 
     used, notwithstanding any other provision of law, to fund the 
     Commander's Emergency Response Program, for the purpose of 
     enabling military commanders in Iraq to respond to urgent 
     humanitarian relief and reconstruction requirements within 
     their areas of responsibility by carrying out programs that 
     will immediately assist the Iraqi people, and to fund a 
     similar program to assist the people of Afghanistan: 
     Provided, That the Secretary of Defense shall provide 
     quarterly reports to the congressional defense committees 
     regarding the source of funds and the allocation and use of 
     funds made available pursuant to the authority provided in 
     this section.
       Sec. 9008. Section 202(b) of the Afghanistan Freedom 
     Support Act of 2002 (Public Law 107-327, as amended by 
     section 2206 of Public Law 108-106) is amended by striking 
     ``$450,000,000'' and inserting in lieu thereof 
     ``$550,000,000''.
       Sec. 9009. During the current fiscal year, funds available 
     to the Department of Defense for operation and maintenance 
     may be used, notwithstanding any other provision of law, to 
     provide supplies, services, transportation, including airlift 
     and sealift, and other logistical support to coalition forces 
     supporting military and stability operations in Iraq and 
     Afghanistan: Provided, That the Secretary of Defense shall 
     provide quarterly reports to the congressional defense 
     committees regarding support provided under this section.
       Sec. 9010. (a) Not later than April 30 and October 31 of 
     each year, the Secretary of Defense shall submit to Congress 
     a report on the military operations of the Armed Forces and 
     the reconstruction activities of the Department of Defense in 
     Iraq and Afghanistan.
       (b) Each report shall include the following information:

[[Page 16420]]

       (1) For each of Iraq and Afghanistan for the half-fiscal 
     year ending during the month preceding the due date of the 
     report, the amount expended for military operations of the 
     Armed Forces and the amount expended for reconstruction 
     activities, together with the cumulative total amounts 
     expended for such operations and activities.
       (2) An assessment of the progress made toward preventing 
     attacks on United States personnel.
       (3) An assessment of the effects of the operations and 
     activities in Iraq and Afghanistan on the readiness of the 
     Armed Forces.
       (4) An assessment of the effects of the operations and 
     activities in Iraq and Afghanistan on the recruitment and 
     retention of personnel for the Armed Forces.
       (5) For the half-fiscal year ending during the month 
     preceding the due date of the report, the costs incurred for 
     repair of Department of Defense equipment used in the 
     operations and activities in Iraq and Afghanistan.
       (6) The foreign countries, international organizations, and 
     nongovernmental organizations that are contributing support 
     for the ongoing military operations and reconstruction 
     activities, together with a discussion of the amount and 
     types of support contributed by each during the half-fiscal 
     year ending during the month preceding the due date of the 
     report.
       (7) The extent to which, and the schedule on which, the 
     Selected Reserve of the Ready Reserve of the Armed Forces is 
     being involuntarily ordered to active duty under section 
     12304 of title 10, United States Code.
       (8) For each unit of the National Guard of the United 
     States and the other reserve components of the Armed Forces 
     on active duty pursuant to an order to active duty under 
     section 12304 of title 10, United States Code, the following 
     information:
       (A) The unit.
       (B) The projected date of return of the unit to its home 
     station.
       (C) The extent (by percentage) to which the forces deployed 
     within the United States and outside the United States in 
     support of a contingency operation are composed of reserve 
     component forces.
       Sec. 9011. Congress, consistent with international and 
     United States law, reaffirms that torture of prisoners of war 
     and detainees is illegal and does not reflect the policies of 
     the United States Government or the values of the people of 
     the United States.
       Sec. 9012. The President shall provide to the Congress a 
     report detailing the estimated costs over the period from 
     fiscal year 2006 to 2011 of Operation Iraqi Freedom and 
     Operation Enduring Freedom, or any related military 
     operations in and around Iraq and Afghanistan, and the 
     estimated costs of reconstruction, internal security, and 
     related economic support to Iraq and Afghanistan: Provided, 
     That the President may waive the requirement to submit this 
     report only if the President certifies in writing to the 
     Congress that estimates of these future military and economic 
     support costs cannot be provided for purposes of national 
     security: Provided further, That the report referenced above 
     shall be submitted no later than January 1, 2005.
       Sec. 9013. None of the funds made available in this title 
     may be used to fund any contract in contravention of section 
     8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)).
       Sec. 9014. The Secretary of Defense may present promotional 
     materials, including a United States flag, to any member of 
     an Active or Reserve component under the Secretary's 
     jurisdiction who, as determined by the Secretary, 
     participates in Operation Enduring Freedom or Operation Iraqi 
     Freedom.
       Sec. 9015. Amounts appropriated or otherwise made available 
     in this title are each designated as an emergency requirement 
     pursuant to section 402 of S. Con. Res. 95 (108th Congress), 
     as made applicable to the House of Representatives by H. Res. 
     649 (108th Congress) and applicable to the Senate by section 
     14007 of this Act.

                                TITLE X

                             OTHER MATTERS

                               CHAPTER 1

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                    Diplomatic and Consular Programs

       For an additional amount for ``Diplomatic and Consular 
     Programs'' for costs associated with United States Mission 
     operations, technological support, logistical support, and 
     necessary security costs in Iraq, $665,300,000, to remain 
     available until expended.

            Embassy Security, Construction, and Maintenance

       For an additional amount for ``Embassy Security, 
     Construction, and Maintenance'' for interim facilities for 
     the United States Mission in Iraq, $20,000,000, to remain 
     available until expended.

                    General Provisions, This Chapter

       Sec. 11001. For the purposes of applying sections 204 and 
     605 of the Departments of Commerce, Justice, and State, the 
     Judiciary, and Related Agencies Appropriations Act, 2004 
     (division B of Public Law 108-199) to matters in title II of 
     such Act under the heading ``National Institute of Standards 
     and Technology'' (118 Stat. 69), in the account under the 
     heading ``Industrial Technology Services'', the Secretary of 
     Commerce shall make all determinations based on the 
     Industrial Technology Services funding level of $218,782,000 
     for reprogramming and transferring of funds for the 
     Manufacturing Extension Partnership program and may submit 
     such a reprogramming or transfer, as the case may be, to the 
     appropriate committees within 30 days after the date of the 
     enactment of this Act.
       Sec. 11002. In addition to amounts otherwise made available 
     in this Act, $50,000,000, is made available upon enactment 
     for ``Office of Justice Programs--State and Local Law 
     Enforcement Assistance'' for discretionary grants under the 
     Edward Byrne Memorial State and Local Law Enforcement 
     Assistance Programs for reimbursement to State and local law 
     enforcement entities for security and related costs, 
     including overtime, associated with the 2004 Presidential 
     Candidate Nominating Conventions, to remain available until 
     September 30, 2005: Provided, That from funds provided in 
     this section the Office of Justice Programs shall make grants 
     in the amount of $25,000,000 to the City of Boston, 
     Massachusetts; and $25,000,000 to the City of New York, New 
     York.
       Sec. 11003. To ensure the continuity of Criminal Justice 
     Act (CJA) representations by panel attorneys, $26,000,000 is 
     appropriated to the Judiciary, ``Courts of Appeals, District 
     Courts, and Other Judicial Services, Defender Services'', to 
     remain available until expended: Provided, That the entire 
     amount shall become available upon enactment of this Act: 
     Provided further, That the amounts made available in this 
     section shall only be used for CJA panel attorney 
     representations.
       Sec. 11004. Authorities contained in sections 402, 407, and 
     605 of division B of Public Law 108-199 shall also apply to 
     amounts provided in this title for the Department of State.

                               CHAPTER 2

                     BILATERAL ECONOMIC ASSISTANCE

                  FUNDS APPROPRIATED TO THE PRESIDENT

           United States Agency for International Development

              International Disaster and Famine Assistance

       For an additional amount for ``International Disaster and 
     Famine Assistance'', $70,000,000, to remain available until 
     expended: Provided, That funds appropriated by this paragraph 
     shall be available to respond to the humanitarian crisis in 
     the Darfur region of Sudan and in Chad.

                          Department of State

                    Migration and Refugee Assistance

       For an additional amount for ``Migration and Refugee 
     Assistance'', $25,000,000, to remain available until 
     expended: Provided, That funds appropriated by this paragraph 
     shall be available to respond to the humanitarian crisis in 
     the Darfur region of Sudan and in Chad.

                    General Provisions, This Chapter

       Sec. 12001. (a)(1) Notwithstanding section 514 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321h), the 
     President may transfer to Israel, in exchange for concessions 
     to be negotiated by the Secretary of Defense, with the 
     concurrence of the Secretary of State, any or all of the 
     items described in paragraph (2).
       (2) The items referred to in paragraph (1) are armor, 
     artillery, automatic weapons ammunition, missiles, and other 
     munitions that--
       (A) are obsolete or surplus items;
       (B) are in the inventory of the Department of Defense;
       (C) are intended for use as reserve stocks for Israel; and
       (D) as of the date of enactment of this Act, are located in 
     a stockpile in Israel.
       (b) The value of concessions negotiated pursuant to 
     subsection (a) shall be at least equal to the fair market 
     value of the items transferred. The concessions may include 
     cash compensation, services, waiver of charges otherwise 
     payable by the United States, and other items of value.
       (c) Not later than 30 days before making a transfer under 
     the authority of this section, the President shall transmit a 
     notification of the proposed transfer to the Committees on 
     Foreign Relations and Armed Services of the Senate and the 
     Committees on International Relations and Armed Services of 
     the House of Representatives. The notification shall identify 
     the items to be transferred and the concessions to be 
     received.
       (d) No transfer may be made under the authority of this 
     section more than 2 years after the date of the enactment of 
     this Act.
       Sec. 12002. Section 514(b)(2) of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2321h(b)(2)) is amended--
       (1) in subparagraph (A), by striking ``for fiscal year 
     2003'' and inserting ``for each of fiscal years 2004 and 
     2005''; and
       (2) in subparagraph (B), by striking ``for fiscal year 
     2003'' and inserting ``for a fiscal year''.

                               CHAPTER 3

 SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2004 FOR URGENT WILDLAND 
                      FIRE SUPPRESSION ACTIVITIES

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                        WILDLAND FIRE MANAGEMENT

       For an additional amount for fiscal year 2004 for 
     ``Wildland Fire Management'', $100,000,000, to remain 
     available until expended, for urgent wildland fire 
     suppression activities related to

[[Page 16421]]

     the fiscal year 2004 fire season pursuant to section 312 of 
     S. Con. Res. 95 (108th Congress): Provided, That such funds 
     are also available for repayment of advances to other 
     appropriations accounts from which funds are transferred for 
     such purposes: Provided further, That cost containment 
     measures shall be implemented within this account for fiscal 
     year 2004, and the Secretary of the Interior shall submit to 
     the Committees on Appropriations of the Senate and the House 
     of Representatives a report on such cost containment measures 
     by December 31, 2004.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service


                        WILDLAND FIRE MANAGEMENT

       For an additional amount for fiscal year 2004 for 
     ``Wildland Fire Management'', $400,000,000, to remain 
     available until expended, for urgent wildland fire 
     suppression activities related to the fiscal year 2004 fire 
     season pursuant to section 312 of S. Con. Res. 95 (108th 
     Congress): Provided, That such funds are also available for 
     repayment of advances to other appropriations accounts from 
     which funds are transferred for such purposes: Provided 
     further, That the Secretary of Agriculture shall establish an 
     independent cost-control review panel to examine and report 
     on fire suppression costs for individual wildfire incidents 
     that exceed $10,000,000 in cost: Provided further, That if 
     the independent review panel report finds that appropriate 
     actions were not taken to control suppression costs for one 
     or more such wildfire incidents, then an amount equal to the 
     aggregate estimated excess costs of suppressing those 
     wildfire incidents shall be transferred to the Treasury from 
     unobligated balances remaining at the end of fiscal year 2004 
     in the Wildland Fire Management account, if available.

                               CHAPTER 4

                     GENERAL PROVISIONS, THIS TITLE

       Sec. 14001. Appropriations provided in this title are 
     available for obligation until September 30, 2005, unless 
     otherwise so provided in this title.
       Sec. 14002. Funds in this title are available for 
     obligation and authorities in this title shall apply upon 
     enactment of this Act.
       Sec. 14003. (a) Public Law 108-199 is amended in division 
     F, title I, section 110(g) by striking ``Of the'' and 
     inserting ``Prior to distributing''; striking ``each'' every 
     time it appears and inserting ``the''; striking ``project'' 
     every time it appears and inserting ``projects''.
       (b) The limitation under the heading ``Federal-aid Highways 
     (Limitation on Obligations) (Highway Trust Fund)'' in Public 
     Law 108-199 is increased by such sums as may be necessary to 
     ensure that each State receives an amount of obligation 
     authority equal to what each State would have received under 
     division F, title I, section 110(a)(6) of Public Law 108-199 
     but for the amendment made to division F, title I, section 
     110(g) of Public Law 108-199 by subsection (a) of this 
     section: Provided, That such additional authority shall 
     remain available during fiscal years 2004 and 2005: Provided 
     further, That for each State receiving an amount of 
     obligation authority greater than what each State would have 
     received under division F, title I, section 110(a)(6) of 
     Public Law 108-199 but for the amendment made to division F, 
     title I, section 110(g) of Public Law 108-199 by subsection 
     (a) of this section, such additional obligation authority 
     shall remain available during fiscal years 2004 and 2005.
       Sec. 14004. (a) Rescission.--Upon enactment of this Act, 
     there is rescinded an amount equal to $795,280 from the 
     amount appropriated to carry out part B of title VII of the 
     Higher Education Act of 1965, in title III of division E of 
     the Consolidated Appropriations Act, 2004 (Public Law 108-
     199; 118 Stat. 3). This amount shall reduce the funds 
     available for the projects specified in the statement of the 
     managers on the Conference Report 108-401 accompanying the 
     Consolidated Appropriations Act, 2004 (Public Law 108-199; 
     118 Stat. 3).
       (b) Disregard Amount.--In the statement of the managers on 
     the Conference Report 108-401 accompanying the Consolidated 
     Appropriations Act, 2004 (Public Law 108-199; 118 Stat. 3), 
     in the matter in title III of division E, relating to the 
     Fund for the Improvement of Postsecondary Education under the 
     heading ``Higher Education'', the provision specifying 
     $800,000 for Wahpeton State School of Science and North 
     Dakota State University to recruit, retain and train pharmacy 
     technicians shall be disregarded.
       (c) Appropriation.--There is appropriated an amount equal 
     to $795,280 to the Department of Labor, Employment and 
     Training Administration for ``Training and Employment 
     Services'', available for obligation for the period from July 
     1, 2004, through June 30, 2005, of which--
       (1) $200,000 shall be made available to the North Dakota 
     State School of Science to recruit, retain, and train 
     pharmacy technicians;
       (2) $297,640 shall be made available to Bismarck State 
     College for training and education related to its electric 
     power plant technologies curriculum; and
       (3) $297,640 shall be made available for Minot State 
     University for the Job Corps Fellowship Training Program.
       (d) The matter under the heading ``Institute of Museum and 
     Library Services'' in title IV of the Departments of Labor, 
     Health and Human Services, and Education, and Related 
     Agencies Appropriations Act, 2004, (Public Law 108-199, 
     division E) is amended by striking ``Michigan Space and 
     Science Center, Jackson, Michigan, for development of the 
     strategic plan, operational costs and personnel'' and 
     inserting ``Jackson Intermediate School District, Jackson, 
     Michigan, for equipment and materials for the Math and 
     Science Resource Library''.
       Sec. 14005. Of the unobligated amounts available for the 
     District of Columbia Public Schools under this heading, 
     $10,600,000 are rescinded immediately upon enactment of this 
     Act. For a Federal payment to the District of Columbia under 
     this heading, $10,600,000, available immediately upon 
     enactment of this Act, to improve public school education in 
     the District of Columbia, to remain available until September 
     30, 2005.
       Sec. 14006. The numerical limitation contained in section 
     214(g)(1)(B) of the Immigration and Nationality Act (8 U.S.C. 
     1184(g)(1)(B)) shall not apply to any nonimmigrant alien 
     issued a visa or otherwise provided status under section 
     101(a)(15)(H)(ii)(b) of such Act (8 U.S.C. 
     1101(a)(15)(H)(ii)(b)) who is employed (or has received an 
     offer of employment) as a fish roe processor, a fish roe 
     technician, or a supervisor of fish roe processing.
       Sec. 14007. 2005 Discretionary Limits. (a) In General.--For 
     the purposes of section 302(a) of the Congressional Budget 
     Act of 1974, the allocation of the appropriate levels of 
     budget totals for the Senate Committee on Appropriations for 
     fiscal year 2005 shall be--
       (1) for total discretionary spending--
       (A) $821,419,000,000 in total new budget authority; and
       (B) $905,328,000,000 in total budget outlays; and
       (2) for mandatory--
       (A) $460,008,000,000 in total new budget authority; and
       (B) $445,525,000,000 in total budget outlays;
     until a concurrent resolution on the budget for fiscal year 
     2005 is agreed to by the Senate and the House of 
     Representatives pursuant to section 301 of the Congressional 
     Budget Act of 1974.
       (b) Adjustments and Limits.--The following limits and 
     adjustments provided in S. Con. Res. 95 (108th Congress) 
     shall apply to subsection (a):
       (1) Sections 311 and 403 for fiscal year 2005.
       (2) Sections 312 and 402 which shall apply to both fiscal 
     years 2004 and 2005.
       (c) Definition.--In this section, the term ``total 
     discretionary spending'' includes the discretionary category, 
     the mass transit category, and the highway category.
       (d) Repeal.--Section 504 of H. Con. Res. 95 (108th 
     Congress) is repealed.
       (e) Effective Date.--This section shall take effect on the 
     date of enactment of this Act.
       Sec. 14008. Amounts appropriated or otherwise made 
     available in chapters 1 and 2 of this title are each 
     designated as an emergency requirement pursuant to section 
     402 of S. Con. Res. 95 (108th Congress), as made applicable 
     to the House of Representatives by H. Res. 649 (108th 
     Congress) and applicable to the Senate by section 14007 of 
     this Act.
       This Act may be cited as the ``Department of Defense 
     Appropriations Act, 2005''.
       And the Senate agree to the same.

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

     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete Domenici,
     Kit Bond,
     Mitch McConnell,
     Richard C. Shelby,
     Judd Gregg,
     Kay Bailey Hutchison,
     Conrad Burns,
     Daniel K. Inouye,
     Ernest F. Hollings,
       (except for deeming section),
     Robert C. Byrd,
       (except for the section deeming FY 2005 discretionary 
     limits),
     Patrick J. Leahy,
       (except for deeming section),
     Tom Harkin,
       (except for deeming section),
     Byron L. Dorgan,
       (except for deeming section),
     Richard J. Durbin,
       (except for the deeming FY 2005 discretionary limits),
     Harry Reid,
       (except for deeming section),
     Dianne Feinstein,
       (except for deeming section),
                               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

[[Page 16422]]

     amendment of the Senate to the bill (H.R. 4613), making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 2005, 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, 2005, incorporates some of the provisions 
     of both the House and Senate versions of the bill. The 
     language and allocations set forth in House Report 108-553 
     and Senate Report 108-284 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, 2005, 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 2006, 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 
     2006.

     Reprogramming, Withholding, and ``Taxing'' Appropriated Funds

       The conferees agree to continue the existing below-
     threshold reprogramming guidelines which are as follows: $20 
     million for procurement accounts and $10 million for 
     research, development, test and evaluation (RDT&E) accounts. 
     The conferees further agree that these thresholds are to be 
     applied to the specific dollar threshold or 20 percent of 
     each P-1 or R-1 line, whichever is the lesser level. 
     Furthermore, the dollar or 20 percent threshold is to be 
     considered in a cumulative fashion. Therefore if the combined 
     values of transfers into or out of a procurement (P-1) or 
     research and development (R-1) line exceed the identified 
     threshold, the Department of Defense must submit a prior 
     approval reprogramming request.
       The conferees agree with the Senate position that the 
     Department of Defense is to abide by legal requirements for 
     congressional notification of new starts. Section 8106 of 
     this conference agreement establishes a requirement for 
     written notification for initiating a new start program. The 
     conferees agree with both the Senate and the House position 
     on the inappropriate nature of ``taxing'' an appropriation to 
     generate funds to support a new start project not previously 
     disclosed to Congress. This practice violates these 
     requirements and is therefore prohibited.
       The conferees agree to a prohibition on the practice of 
     setting aside funds--the taxing of appropriations made for 
     particular programs--to fund shortfalls in other programs, or 
     initiate new programs. This includes the practice of 
     ``taxing'' funds appropriated for congressional interest 
     items to pay for laboratory overhead or management costs. The 
     conferees direct that funds shall not be included in a budget 
     request for any program, project and activity to accommodate 
     the application of non-statutory withholds and taxes, or to 
     reimburse other programs as ``repayment'' for funds 
     transferred to a program in a previous year. Statutory 
     withholds such as Small Business Innovative Research, shall 
     be applied uniformly to each program element, project and 
     activity within an account.
       The conferees direct the Secretary of Defense to provide 
     data by January 31, 2005 on the adequacy and use of the 
     Department's current reprogramming and withholding practices. 
     Furthermore, the conferees direct the Department to work with 
     the congressional defense committees on a method of providing 
     timely and accurate data on reprogramming activity (above 
     threshold and below threshold), and the application of 
     statutory and administrative withholds. The conferees further 
     direct that reprogramming data should be available on at 
     least a monthly basis, potentially in conjunction with DoD 
     1002 reports and that the Department should transmit the data 
     electronically, if feasible, to the congressional defense 
     committees.

                           New Start Programs

       The conferees agree to amend Section 8106 to ensure that 
     written notification is provided prior to initiation of new 
     start programs. The conferees direct that such notification 
     be provided to the congressional defense committees no less 
     than 30 calendar days prior to obligation of funds for the 
     new start program.

               Business Management Modernization Program

       The conferees are concerned about the pace of the reforms 
     for improving financial management at the Department of 
     Defense. Although the Department announced its intention to 
     achieve a fully functional accounting system by fiscal year 
     2007, a significant amount of funding provided in prior years 
     for the Business Management Modernization Program (BMMP) 
     remains unexpended. Furthermore, the Department has not 
     developed an execution plan for $30,248,000 requested for 
     procurement for the BMMP. The conferees note that these and 
     other problems are examined in the GAO report dated May 17, 
     2004, entitled ``DOD Business Systems Modernization: Limited 
     Progress in Development of Business Enterprise Architecture 
     and Oversight of Information Technology Investments.'' 
     Although the conferees have reduced the budget request for 
     the BMMP by $97,248,000 for unjustified program growth and 
     low obligations and expenditures, the conferees are committed 
     to financial management reform, and urge the Department to 
     redouble its efforts in this area. 

                            Classified Annex

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

[[Page 16423]]

     
     
      

[[Page 16424]]

                        Force Structure Changes

       The conferees recommend a total of $98,100,000 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   $25,000   $20,300   $47,900
National Guard Full-Time
 Support:
    ARNG Civil Support Teams        12,600    14,000    18,200    44,800
     AGRs.......................
    ANG Civil Support Teams AGRs     2,100  ........  ........     2,100
    Ground-Based Midcourse           3,300  ........  ........     3,300
     Missile Defense AGRs.......
------------------------------------------------------------------------


                                               ACTIVE END STRENGTH
                                               [Fiscal year 2005]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Conference vs.
                                                                      Budget        Conference        budget
----------------------------------------------------------------------------------------------------------------
Army............................................................         482,400         482,400  ..............
Navy............................................................         365,900         365,900  ..............
Marine Corps....................................................         175,000         175,000  ..............
Air Force.......................................................         359,700         359,700  ..............
                                                                 -----------------------------------------------
    Total, Active Personnel.....................................       1,383,000       1,383,000  ..............
----------------------------------------------------------------------------------------------------------------


[[Page 16425]]




[[Page 16426]]


[[Page 16427]]


[[Page 16428]]


[[Page 16429]]


[[Page 16430]]


[[Page 16431]]


[[Page 16432]]


[[Page 16433]]


[[Page 16434]]


[[Page 16435]]


[[Page 16436]]


[[Page 16437]]


[[Page 16438]]


[[Page 16439]]


[[Page 16440]]


[[Page 16441]]


[[Page 16442]]


[[Page 16443]]


[[Page 16444]]


[[Page 16445]]


[[Page 16446]]


[[Page 16447]]


[[Page 16448]]


[[Page 16449]]


[[Page 16450]]

 
[[Page 16451]]

                           Corrosion Control

       In a recent General Accounting Office (GAO) report entitled 
     ``Opportunities Exist to Improve Implementation of Department 
     of Defense's Long-Term Corrosion Strategy,'' the GAO 
     identified a number of shortcomings with the Defense 
     Department's corrosion control strategy and provided several 
     recommendations to enhance its effectiveness. The conferees 
     concur with GAO's overall assessment and direct the 
     Department to comply with the recommendations provided in the 
     report. Specifically, the conferees direct the Department to 
     establish a specific, separate program element or budget line 
     to ensure that sustained and adequate funding is available 
     for the corrosion control projects that have the best 
     potential to provide maximum benefit across the Department.
       In addition, the conferees are concerned about the 
     potential for corrosion damage to pre-positioned stocks, 
     which are frequently located in highly corrosive 
     environments. Such corrosion could degrade readiness to 
     respond to contingencies and be very costly to fix. The 
     conferees agree that GAO is best suited to conduct a review 
     of this concern. The conferees, therefore, encourage GAO, 
     instead of the Department of Defense Inspector General as 
     proposed by the Senate, to conduct a review of the impact of 
     corrosion on pre-position assets, and recommend policy, 
     management or funding changes to mitigate that corrosion.
       Finally, the conferees commend the Department of Defense in 
     its establishment of an Office of Corrosion Policy and 
     Oversight (CPO) for focused management attention on corrosion 
     control. The conferees reiterate the importance of continuing 
     to maintain within a central office, as directed by section 
     2228 of title 10, United States Code, the integration of 
     oversight for both equipment and infrastructure. The 
     conferees believe such integration is essential to ensuring 
     that anti-corrosion benefits are fully realized across the 
     installation and equipment communities.

[[Page 16452]]

     
     


[[Page 16453]]



[[Page 16454]]

      

[[Page 16455]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  250  Ultra Lightweight Camouflage Net System (ULCANS)...........2,500
  250  Modular General Purpose Tent System (MGPTS)................2,600
  250  Tactical Operations Centers (ELAMS/IMECCS) for USASOC and 4th 
    Infantry Division.............................................4,500
  250  Basic Hydration on the Move................................1,400
  250  Fleece Insulated Liners (for ECWCS)........................5,600
  300  USAARMC FCS Support Cell at Fort Knox......................1,000
  400  Modernized Equipment Support Cost Unjustified Growth.....-10,000
  400  Leak Proof Transmission Drip Pans..........................2,000
  450  Rotational Training Unjustified Cost Growth...............-5,000
  450  Forward Osmosis Water Filtration...........................5,300
  450  USARPAC SBCT C4 Infrastructure.............................6,000
  550  Advanced Combat Helmet....................................14,000
  550  Pacific Deployable C4 Package..............................1,700
  550  USARPAC C4 Information Infrastructure......................7,400
  600  Tactical Exploitation System..............................-4,000
  600  Vehicle Integrated Primary Electrical Resource.............3,000
  600  AFATDS Regional Training Team..............................5,300
  650  M1A1 Transmission Maintenance.............................12,000
  750  Base Operating Support Unjustified Growth................-14,000
  750  Renewal of Sunshine Road Ammunition Transportation Route, Fort 
    Benning.......................................................2,000
  750  Upgrade Telecommunications Infrastructure, Fort Monmouth...1,000
  750  Army Conservation and Ecosystem Management.................3,000
  750  Fort Hood Offsite Conservation Program.......................850
  750  Fort Knox Crossroad Cluster Communities MOUT Site............750
  750  Fort Richardson Biathalon Trail Upgrade....................1,000
  750  Restore Woody Island and Historic Structures...............1,000
  750  USARAK Road Repairs.......................................11,000
  800  Rock Island Arsenal Wash Bay--Transferred to Weapons and Tracked 
    Combat Vehicles, Army, Line 38....................................0
  800  Rock Island Arsenal Laser Cutting Machine--Transferred to 
    Weapons and Tracked Combat Vehicles, Army, Line 38................0
  800  Rock Island Arsenal Titanium Welding Cell--Transferred to 
    Weapons and Tracked Combat Vehicles, Army, Line 38................0
  800  Fort Wainwright Utilidor Repairs...........................8,500
  800  Rockfall Mitigation below Tripler AMC.......................2400
  850 PACMERS.....................................................3,300
  900  Specialty Containers (Quadcons)............................2,800
  950  WMD-CSTs...................................................4,200
Budget Activity 2:
  1300  Industrial Mobilization Capacity..........................4,600
Budget Activity 3: Training and Recruiting:
  1650  ROTC Cadre and Support Costs Unjustified Growth..........-6,000
  1650  Air Battle Captain Program................................2,000
  1850  Satellite Communications for Learning (SCOLA), DLI Foreign 
    Language Center...............................................3,000
  1850  Virtual Reality Spray Paint Simulator System and Training 
    Program.......................................................1,500
  1850  Video Interctive Training and Assessment System...........1,700
  1850  Military Police MCTFT Joint Training......................1,000
  1950  Leadership for Leaders at CGSC/CAL and KSU................1,000
  1950  Management Training.......................................1,000
  2000  Training Support and Doctrine Development Unjustified Gr-20,000
  2000  Training Instrumentation for Air and Missile Defense Units, 
    Fort Bliss....................................................3,500
  2000  DLIFLC Global Language On-line Support System (GLOSS) Proj1,700
  2000  DLIFLC Persian-Farsi Curriculum Development--Semester 2...1,400
  2000  Joint Training Exercise Experimentation Project...........2,000
  2350  Online Technology Training Program, Fort Lewis............1,900
  2350  Online Technology Training Program........................1,400
  2400  Philadelphia Military Academy.............................1,000
Budget Activity 4: Administration and Servicewide Activities:
  2650  Security Programs Classified Adjustment..................16,450
  2800  NATO 9T AGM Batteries.....................................1,900
  2800  Pulse Technology--Army Battery Management Program.........2,800
  2800  Integrated Digital Environments Pilot Program for Army Aviation 
    Fleet Logistics Management....................................1,200
  2850  Integrated Digital Environments (IDE) PEO Ground Combat Sy1,000
  2850  Sense and Respond Logistics 2.............................2,400
  2850  Controlled Humidity Preservation Program, Soft Portable Tu1,000
  2850  Army Ground Systems Integrated Lean Enterprise (AGILE)....4,200
  2850  Corrosion Prevention and Control..........................6,800
  2850  Field Pack Up System......................................2,800
  3000  OASA (CW) transfer to Energy and Water Subcommittee......-4,000
  3050  Army Knowledge Online (AKO)...............................3,400
  3050  Infrastructure Upgrades at Camp Carroll.....................423
  3200  One Soul: Holocaust Education Exhibit.....................1,000
  3200  Memorial Day................................................900
  3200  Army Legacy Logistics Systems Modernization...............4,900
  3200  Centralized Range Residue Recycling Facility (CRRRF)......1,300
  3650  Center for Disaster Management and Humanitarian Assistance1,000
Undistributed:
  3730  Repairs at Fort Baker.....................................1,900
  4100  Administration and Servicewide Activities...............-54,000
  4110  Civilian Pay Overstatement..............................-66,100
  4130  Military to Civilian Conversions........................-65,000
  4137  NATO Mission Support Costs.............................-320,850

               Army Conservation and Ecosystem Management

       The conferees provide an additional $3,000,000 to continue 
     the Army Conservation and Ecosystem Management program. The 
     conferees recommend $1,000,000 be used to support projects 
     such as Kahuku flooding, Salt Lake sediment run-off, and 
     Helemanu water transmission.

                     M1A1 Transmission Maintenance

       The conferees provide an additional $12,000,000 for M1A1 
     Transmission Maintenance. The conferees recognize that the 
     Army is committed to address the transmission industrial base 
     but remain concerned about the implementation and funding of 
     the Transmission Enterprise Program. According to the Army's 
     report to Congress on future plans to sustain the operational 
     readiness of tank transmissions for the Abrams fleet, the 
     funding shortfall to sustain the business base exceeds the 
     additional funding provided. Therefore, the conferees direct 
     the Department of the Army to develop a plan to sustain this 
     industrial base through fiscal year 2005. This plan is to be 
     submitted to the congressional defense committees before 
     submission of the fiscal year 2006 budget request and include 
     funding strategies to address this shortfall through the 
     future years defense program.

[[Page 16456]]

     
     


[[Page 16457]]



[[Page 16458]]

      

[[Page 16459]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  4560  Publications Costs and Maintenance Trends Analysis Unjustified 
    Growth......................................................-15,000
  4560  Navy Air Logistics Data Analysis.........................-8,000
  4650  Naval Aviation Depot (NADEP) Support of the FRP...........1,200
  4650  Simulation Modeling Analytical Support System (SMASS) Prog1,000
  4650  CAT & RADCOM Test Program Sets Life Extension Program.....5,100
  4650  Navy Converged ERP Program Reduction.....................-5,000
  4650  Low Observability Coatings and Materials Maintenance, COE.1,000
  4850  Pierside and Organizational Maintenance U.S.S. Eisenhower.7,500
  5000  Ship Depot Maintenance...................................11,300
  5050  Single Torpedo Maintenance Facility.......................1,100
  5050  Engineering Technician, Apprentice, Co-op Program, NUWC Ke1,100
  5050  Improved Engineering Design Process.......................1,100
  5050   Cruiser Conversion.....................................-43,100
  5050  Manufacturing Technical Assistance and Production Program.2,800
  5050  Naval Shipyard Apprenticeship Program.....................1,500
  5450  Center of Excellence for Disaster Management and Humanitarian 
    Assistance....................................................4,500
  5450  PACOM Theater Joint C4....................................2,900
  5500  Excessive Growth for JFCOM..............................-15,000
  5550  Manual Reverse Osmosis Desalinator (MROD) Testing, Repair and 
    Replacement...................................................1,000
  5900  Mk 45 5 Inch Gun Depot Overhauls.........................14,000
  6210  Toledo Shipyard Improvement Plan..........................1,500
  6210  Education, Childhood Development, Groton Navy Submarine Base975
  6210  Seal Beach Naval Weapons Station Bridge Removal.............450
  6220  Base Operating Support Unjustified Growth................-7,500
  6220  Naval Integrated Security System, Naval Station San Diego.2,800
  6220  Navy Region Northwest--Navy Shore Infrastructure Transformation 
    (NSIT)........................................................4,600
  6220  Navy Region Southeast--Integrated Safety Management System 
    (ISMS) Completion.............................................2,200
  6220  Combating Terrorism Database System (CDTS) Remote Data 
    Repository (RDR) Project......................................1,200
  6220  Annual Savings from NSRR Disestablishment...............-30,000
  6220  Flood Mitigation at Lualualei.............................2,600
  6220  PMRF Flood Control........................................3,000
Budget Activity 2: Mobilization:
  6500  Ship Disposal Program.....................................7,000
Budget Activity 3: Training and Recruiting:
  7200  Near Pier-Side Tactical and Simulation Training...........1,000
  7200  Blended Learning Initiative...............................1,000
  7250  Night Vision Goggles in Advanced Helicopter Training......1,500
  7300  Navy Advanced Education Demonstration Project...............500
  7300  Center for Defense Technology and Education for the Military 
    Services (CDTEMS).............................................4,000
  7300  Navy Professional Military Education......................1,000
  7350  Vital Learning Recruitment/Retention Screening Test Progra1,000
  7600  Continuing Education Distance Learning....................1,000
  7700  Naval Sea Cadet Corps.....................................1,700
  7700  Naval Junior ROTC Marine Science Research Program.........1,000
Budget Activity 4: Administration and Servicewide Activities:
  8550  Stainless Steel Sanitary Spaces...........................3,000
  8550  Knowledge Management and Decision Support System..........6,000
  8550  RFID......................................................1,000
  8600  Active Data-Rich RFID AIT for Navy In-Transit Visibility 
    Infrastructure................................................1,500
  9000  Local Situational Assessment Segment, NAS Lemoore.........3,000
  9000  Navy Integrated Security System (NISS)....................3,400
  9000  Security Programs Classified Adjustment..................23,455
Undistributed:
  9550  Administration and Servicewide Activities...............-61,000
  9570  Civilian Pay Overstatement..............................-13,300
  Military to Civilian Conversions..............................-17,000
  9590  Civilian Separation Incentive...........................-14,500
  9612 NATO Mission Support Costs...............................-11,025

                       U.S. Naval Sea Cadet Corps

       The conferees include an additional $1,700,000 for the U.S. 
     Naval Sea Cadet Corps and urge the Navy to fund this program 
     in the fiscal year 2006 budget request.

 Navy Region Northwest-Navy Shore Infrastructure Transformation (NSIT)

       The conferees have included $4,600,000 for the Navy Shore 
     Infrastructure Transformation (NSIT) program at Navy Region 
     Northwest. The conferees support the efforts underway at Navy 
     Region Northwest to improve and make more efficient the 
     efforts for environmental protection and environmental 
     training as well as base security in this region. The 
     conferees further direct that from within these funds, 
     $500,000 is available only to continue the Navy Region 
     Northwest's Science Education Alliance program at the Naval 
     Undersea Museum during the 2004-2005 academic year.

                Critical Asset Vulnerability Assessment

       The fiscal year 2004 Defense Appropriations Act included 
     $1,400,000 within Operation and Maintenance, Navy for a 
     program known as Critical Asset Vulnerability Assessment, 
     Navy Region Northwest. This funding was intended to identify 
     and address significant issues relating to the security of 
     major assets in the Navy's Northwest region. The conferees 
     note that the Navy has in fact developed plans to address 
     these issues, and direct that the Navy may use the fiends 
     provided to continue risk assessments, conduct technology 
     evaluations, and mitigate vulnerabilities.

                   Global Hawk Maritime Demonstration

       The conferees agree that the Navy should retain its Global 
     Hawk High Altitude Endurance Unmanned Aerial Vehicle as 
     proposed in the President's budget. The conferees encourage 
     the Navy to expand its current demonstration project to 
     include forward deployed forces in the theater of operations 
     of the United States Central Command. The conferees further 
     encourage the Navy to compile the lessons learned in 
     conducting the demonstration program, specifically in that 
     area of responsibility, and incorporate those lessons into 
     the development of concepts of operations for unmanned aerial 
     vehicles.

                   Naval Shipyard Apprentice Program

       The conferees provide an additional $1,500,000 for the 
     Shipyard Apprentice Program and direct the Navy to induct 
     classes of no fewer than 150 apprentices at each of the naval 
     shipyards during fiscal year 2005. Further, the conferees 
     direct the Navy to include the costs of the fiscal year 2006 
     class of apprentices in the fiscal year 2006 budget estimate.

                          Naval Installations

       The conferees have been advised by senior Navy leadership 
     of their intention to address the concerns raised by the 
     Senate to include restoring funding reduced for sustainment, 
     restoration and maintenance projects. Therefore, the 
     conferees will not offer any additional guidance on this 
     subject. However, the Committees on Appropriations will 
     continue to monitor the recommendations and activities of the 
     Naval Installation Command to ensure that all regions are 
     treated equitably and that sufficient funding is allocated 
     for Navy bases.

[[Page 16460]]

     
     


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[[Page 16462]]



[[Page 16463]]



[[Page 16464]]



[[Page 16465]]

      

[[Page 16466]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  12600  Maintain 52 F-117 Aircraft...............................7,900
  12600  Forward Osmosis Water Filtration Devices.................1,000
  12600  F-15E Oxygen Concentrator Reliability Improvement Program1,000
  12600  Combat Air Systems Activities, 480th Intel Squadron.....-9,000
  12600  B-52 Attrition Reserve..................................25,000
  12750  JNTC Distributed Mission Operations Unjustified Growth.-15,000
  12775  Transfer to O&M, Air National Guard....................-39,300
  12775  Oxygen Repair Facility.....................................600
  12775  Rack Mounted Improved AIS................................3,900
  12775  Relational Extraction Server...............................475
  12775  Aircraft Defect Detection and Performance Application......500
  12800  Air Operations Centers Unjustified Growth..............-10,000
  12850  Fairchild AFB Force Protection Rail Relocation.............500
  12850  11th Air Force Range Power and Fiber Upgrades............5,100
  12850  Alaska Land Mobile Radio.................................3,200
  12850  Elmendorf AFB Community Center Enhancements................700
  12850  PACAF IT Consolidation/Storage Area Network..............6,900
  12850  Andersen AFB Invasive Species Pilot Project................250
  12850  Acquisition of Native Allotment F-14589..................2,500
  12850  Force Protection--Ellsworth AFB............................500
  12900  Building 9480 Renovation................................13,500
  12900  COPE THUNDER Facilities Renovation.......................6,000
  12900  Eielson AFB Utilidor Repairs.............................8,500
  12900  Engineering and Environmental Assessment for Stryker Railroad 
    Extension....................................................14,000
  12900  PARC Upgrade--ACTS Ranges Phase 2........................8,500
  13000  C31 Operations and Sustainment Unjustified Growth......-20,000
  13050  Sooner Drop Zone Extension.................................600
  13050  University Partnership for Operational Support...........2,600
  13100  Engineering, Installation Support, and Expanded Space 
    Operations School Unjustified Growth........................-20,000
  13100  Contaminant Air Processing System (CAPS).................1,400
  13200  Management Support for Air Force Battle Labs.............4,300
  13400  Maintenance and Upkeep of Rocket Engine Test Stands at Edwards 
    AFB...........................................................3,000
  13690  Repair Jump Tower at Kirtland AFB..........................600
Budget Activity 2: Mobilization:
  13850  Scot Joint Combined Aircrew System Tester (JCAST)........2,000
  13850  Active Noise Reduction Headsets..........................1,000
  13975  Transfer to O&M Air National Guard.....................-39,500
Budget Activity 3: Training and Recruiting:
  14600  Pavement Equipment Operator Course Consolidation Whiteman Air 
    Force Base....................................................1,900
  14600  National Airborne Operations Center (NAOC).................700
  14650  AWACS Communications Training............................1,000
  14750  Geospatial Distant Learning and Higher Education Developm1,000
  14750  Simulation Training for WMD Emergency Response Programs..1,000
  14750  Center of Excellence for Learning Technology.............1,000
  14950  Reduced Recruiting Goals...............................-23,000
  15100  Online Technology Training Program McChord AFB...........1,000
  15100  Online Technology Training Program Nellis AFB............1,000
  15100  Online Technology Training Program MacDill AFB...........2,000
Budget Activity 4: Administration and Servicewide Activities:
  15350  Hickam AFB Alternative Fuel Vehicle Program..............3,400
  15400  Engine Health Management Data Repository Center..........1,700
  15550  Wright-Patterson AFB Civil Engineering Critical Infrastructure 
    Data Set Development..........................................1,000
  15950  Joint Personnel Recovery Agency..........................1,400
  16000 Demonstration Project for Contractors Employing Persons with 
    Disabilities..................................................1,000
  16100  William Lehman Aviation Center.............................750
  16100  Defense Installation Spatial Data Infrastructure (DISDI).5,100
  16250  Security Programs Classified Adjustment.................11,500
Undistributed:
  16710  Administration and Servicewide Activities..............-94,000
  16720  Base Operations Support................................-21,500
  16730  Civilian Pay Overstatement.............................-12,500
  16780  Military to Civilian Conversions...................... -38,500
  16790  Civilian Separation Incentive..........................-36,500
  16805  NATO Mission Support Costs............................-141,402

[[Page 16467]]





[[Page 16468]]

 

[[Page 16469]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  17050  TJS--CJCS Exercise Program.............................-40,000
  17100  SOCOM--Completion of Knowledge Superiority for Transitional 
    Warfighter....................................................1,000
  17100  SOCOM--Decreased Airlift requirements..................-10,000
  17100  SOCOM--NATO Mission Support Costs.......................-2,300
  17100  SOCOM--SOCOM Unjustified Growth........................-15,000
Budget Activity 3: Training and Recruiting:
  17480  DHRA--DLAMP Program Growth..............................-5,000
  17480  DHRA--Joint Advertising Market Research and Studies Prog10,000
  17610  NDU--Continuing Education................................1,500
  17610  NDU--NDU Integrated Strategic Education..................1,000
  17610  NDU--Joint Staff Infrastructure..........................1,200
  17610  NDU--Commissioned Officer Education Assistance...........1,000
Budget Activity 4: Administration and Servicewide Activities:
  17750  CMP--Outdoor Odyssey.......................................500
  17750  CMP--Innovative Readiness Training.......................8,500
  17750  CMP--National Guard Youth Challenge Program..............7,200
  17750  CMP--Operation Walking Shield Program....................3,000
  17875  DHRA--Defense Business Fellow...........................-4,400
  17875  DHRA--Business Systems..................................-2,000
  17900  DISA--Program Growth...................................-25,000
  17900  DISA--Transaction Monitoring Improvement Project.........1,000
  17925  DLA--Passive RFID Prototype Project......................1,000
  17925  DLA--Commercial Technologies for Maintenance Activities.12,750
  17925  DLA--Alaska Logistics Center.............................7,650
  17925  DLA--NATO Mission Support Costs.........................-1,600
  17925  DLA--Procurement Technical Assistance Cooperative Agreement 
    Program.......................................................7,403
  17925  DLA--RFID................................................3,500
  17975  DODEA--Family Advocacy Program..........................17,000
  17975  DODEA--Office of Victims Advocate........................1,800
  17975  DODEA--Professional Development Project--Instruction for 
    Dyslexic Students.............................................1,000
  17975  DODEA--Lewis Center for Educational Research.............2,550
  17975  DODEA--Internet Safety and Education.....................1,000
  17975  DODEA--DoDEA Facilities SRM.............................12,750
  17975  DODEA--DoDEA Mathematics and Technology Teachers Developm1,000
  17975  DODEA--DoDEA Unjustified Certification Program.........-10,000
  18050  DSS--Unjustified Program...............................-25,000
  18075  DTRA--Export Control Database............................1,300
  18100  OEA--March Joint Powers Authority--Arnold Heights Reuse 
    Project.......................................................1,500
  18100  OEA--Davids Island--Fort Slocum Remediation..............2,600
  18100  OEA--McClellan AFB--Sewer Remediation....................2,000
  18100  OEA--Bayonne Military Ocean Terminal.....................5,000
  18100  OEA--Cecil Field.........................................1,000
  18100  OEA--Hunters Point Naval Shipyard........................2,250
  18100  OEA--Norton AFB..........................................4,250
  18100  OEA--George AFB..........................................1,700
  18100  OEA--Adak Airport Operations Improvements................3,400
  18100  OEA--Fort Benjamin Harrison Relocation Project..........-2,000
  18100  OEA--Port of Anchorage Army Deployment Staging Area......5,000
  18100  OEA--Port of Anchorage Intermodal Marine Facility Project7,375
  18100  OEA--UCHSC-DCH Fitzsimmons Medical Center................6,500
  18100  OEA--Program for Citizen-Soldier Support.................1,800
  18100  OEA--Thorium/Magnesium Excavation--Blue Island.............500
  18125  OSD--BMMP...............................................-7,000
  18125  OSD--BMMP Domains......................................-15,000
  18125  OSD--Logistics System Modernization.....................-4,000
  18125  OSD--Net Assessment.....................................-4,000
  18125  OSD--DoD CIO............................................-2,500
  18125  OSD--OSD Study Program..................................-4,000
  18125  OSD--OSD Contract and Support...........................-5,000
  18125  OSD--Public Affairs....................................-11,500
  18125  OSD--Readiness and Range Initiative.....................-7,500
  18125  OSD--Training Transformation............................-5,000
  18125  OSD--Comptroller Initiatives............................-6,500
  18125  OSD--Defense Procurement and Acquisition Policy.........-7,500
  18125  OSD--Study on Internet and Wireless Technology...........1,000
  18125  OSD--Middle East Regional Security Program...............1,250
  18125  OSD--National Strategic Seaport Model....................1,500
  18125  OSD--Military Leadership and Rule of Law Program.........1,000
  18125  OSD--National Dedicated Fiber Optic Network Program......1,000
  18125  OSD--Center for Foreign Language Study...................1,000
  18125  OSD--Command Information Superiority Architectures.......1,000
  18125  OSD--Clinic for Legal Assistance to Service Member.........750
  18125  OSD--Information Technology Organizational Composition Pr1,300
  18125  OSD--Norm Mineta Internship Immersion Program............2,550
  18125  OSD--Asia Pacific Regional Initiative...................14,000
  18125  OSD--Capital Security Cost Share Program...............-27,300
  18125  OSD--Information Assurance Scholarship Program...........2,250
  18125  OSD--Beyond Goldwater-Nichols Study......................1,000
  18125  OSD--Foreign Disclosure On-Line Training, Education and 
    Certification...................................................500
  18125  OSD--DoD Center for Child Protection.......................500
Undistributed:
  19010  Impact Aid..............................................30,000
  19015  Impact Aid for Children with Disabilities................5,000
  19020  Other Programs.........................................-16,435

                     Beyond Goldwater-Nichols Study

       Last year the conferees directed the Department to 
     undertake a review of reform initiatives going beyond the 
     Goldwater-Nichols reforms of the mid-1980's. The conferees 
     note that further work is now needed on regional command 
     structures, the future of the Guard and Reserve Components, 
     and the acquisition process. The conferees provide $1,000,000 
     to continue this work.

                      Center for Child Protection

       The conferees agree to provide $500,000 to the Office of 
     the Secretary of Defense (OSD) to fund operational costs of 
     the Center for Child Protection. This Center, formerly funded 
     by the Navy's National Medical Center in Bethesda, Maryland, 
     is more appropriately funded and overseen by OSD, given the 
     breadth of the Center's activities.

                      Pentagon Child Care Facility

       The conferees are concerned about the closure of the 
     Pentagon Child Development Center, noting that most of the 
     parents were caught off guard by the announcement and are 
     having trouble making alternate arrangements. The conferees 
     understand the Department is aiding families in finding 
     placement in alternate centers; however, many of those 
     locations have limited spaces available and are not 
     convenient for many Pentagon employees. The conferees are 
     also aware that the Department intends to execute a military 
     construction project in fiscal year 2006 to expand the child 
     care facilities at Fort Myer to be the permanent facility for 
     Pentagon employees. Since it could take up to three years to 
     complete such a project, the conferees are deeply concerned 
     about the

[[Page 16470]]

     impact this will have on parents and their families. 
     Therefore, prior to closure of the Center, the conferees 
     direct the Department to report to the congressional defense 
     committees on its plans to satisfy the child care needs of 
     Pentagon employees. The report shall address the use of 
     alternate locations with minimal adverse impact to families 
     as well as a timeline and plan for a replacement facility.

[[Page 16471]]

     
     


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[[Page 16473]]



[[Page 16474]]



[[Page 16475]]



[[Page 16476]]



[[Page 16477]]



[[Page 16478]]



[[Page 16479]]



[[Page 16480]]



[[Page 16481]]



[[Page 16482]]

      

[[Page 16483]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  26180  Divisions/Cannon Bore Cleaning...........................1,300
  26180  Divisions/Extended Cold Weather Clothing System..........3,800
  26420  Base Operations Support/Communicator-Automated Emergency 
    Notification System...........................................2,200
  26480  Miscellaneous Activities/WMD-Civil Support Teams.........9,800
Budget Activity 4: Administration and Servicewide Activities:
  26660  Staff Management/Base Wide Protection and Facilities 
    Monitoring System.............................................4,800
  26660  Staff Management/CBRA....................................1,000
  26660  Staff Management/Civil Support Team Trainer..............2,000
  26660  Staff Management/Lewis and Clark Bicentennial Commemoration 
    Support.........................................................600
  26680  Information Management/Information Operations Training and 
    Operations....................................................2,800
  26680  Information Management/Readiness and Regional Technology 
    Enhancements..................................................1,000
  26680  Information Management/Real-Time Security Program........1,700
Undistributed:
  26820  Angel Gate Academy.......................................2,000
  26830  National Emergency and Disaster Information System.......3,000
  26890  Joint Training and Experimentation Program...............4,300
  26940  Rural Access to Broadband Technology.....................3,400
  26970  National Guard Global Education Project....................500
  27090  National Response Center WMD Facility....................3,000
  27100  Adv Emergency Medical Response Training Program..........1,300
  27110  Homeland Operational Planning System.....................6,800
  27140  Advanced Information Technology Services (C4ISR).........1,000
  27310  Military Technician Cost Avoidance.....................-55,000
  27341  National Guard Motor Pool Parts Tracking System..........1,700
  27345  Unobligated Balances...................................-21,900
  27350  ERP for Army Guard Installations.........................1,000
  27360  Omega 36 Battle Effects Simulator........................1,500
  27365  Regional Geospatial Service Center......................11,000
  27370  AVCRAD Replacement Equipment.............................1,500
  27381  Community Emergency Response/Info Analysis Center........1,700
  27380  Tactical Operations Center (ELAMS/MECCS).................1,300
  27383  Strategic Biodefense Initiative..........................8,500
  27384  Advanced Starting Systems..................................500
  27385  Infantry Helmet Liner Retrofit (BLISS Kit)...............2,200
  27386  District of Columbia NG Tuition Assistance.................200
  27387  Asset Consolidation and Decision-Making Technology.......1,200

   Distributive Training Technology Project (DTTP)/Reserve Component 
                        Automation System (RCAS)

       The conferees provide the full amount requested for 
     Distributive Training Technology Project (DTTP) and the 
     Reserve Component Automation System (RCAS). The conferees 
     expect that these funds will be expended in accordance with 
     the detailed program descriptions included with the fiscal 
     year 2005 President's Budget submission.

[[Page 16484]]

     
     


[[Page 16485]]

      

[[Page 16486]]

            Overseas Contingency Operations Transfer Account

       The conference agreement provides $10,000,000 for the 
     Overseas Contingency Operations Transfer Account.

          United States Court of Appeals for the Armed Forces

       The conference agreement provides $10,825,000 for the 
     United States Court of Appeals for the Armed Forces.

                    Environmental Restoration, Army

       The conference agreement provides $400,948,000 for 
     Environmental Restoration, Army, instead of $566,948,000 as 
     proposed by the Senate.

                    Environmental Restoration, Navy

       The conference agreement provides $266,820,000 for 
     Environmental Restoration, Navy, instead of $447,820,000 as 
     proposed by the Senate.

                  Environmental Restoration, Air Force

       The conference agreement provides $397,368,000 for 
     Environmental Restoration, Air Force.

                Environmental Restoration, Defense-Wide

       The conference agreement provides $23,684,000 for 
     Environmental Restoration, Defense-Wide, instead of 
     $26,684,000 as proposed by the House.
       The conferees have transferred Perchlorate Destruction by 
     UV Catalyzed Iron Reaction to Research, Development, Test and 
     Evaluation, Defense-Wide, Line 62.

         Environmental Restoration, Formerly Used Defense Sites

       The conference agreement provides $266,516,000 for 
     Environmental Restoration, Formerly Used Defense Sites, 
     instead of $216,516,000 as proposed by the House and 
     $276,516,000 as proposed by the Senate.

             Overseas Humanitarian, Disaster, and Civic Aid

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

              Former Soviet Union Threat Reduction Account

       The conference agreement provides $409,200,000 for the 
     Former Soviet Union Threat Reduction Account.

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[[Page 16490]]



[[Page 16491]]



[[Page 16492]]



[[Page 16493]]



[[Page 16494]]



[[Page 16495]]



[[Page 16496]]



[[Page 16497]]



[[Page 16498]]



[[Page 16499]]



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[[Page 16501]]



[[Page 16502]]



[[Page 16503]]



[[Page 16504]]



[[Page 16505]]



[[Page 16506]]



[[Page 16507]]



[[Page 16508]]



[[Page 16509]]



[[Page 16510]]



[[Page 16511]]



[[Page 16512]]



[[Page 16513]]



[[Page 16514]]



[[Page 16515]]



[[Page 16516]]



[[Page 16517]]

      

[[Page 16518]]

                   Joint Tactical Radio System (JTRS)

       The conferees share the view expressed in the report 
     accompanying the Senate version of the fiscal year 2005 DoD 
     Appropriations Bill noting that the JTRS waiver policy has 
     created a bottleneck in meeting the needs of operational 
     commanders. Therefore, the conferees direct that the 
     Assistant Secretary of Defense for Networks Information 
     Integration (ASD NII), and the Joint Staff report back to the 
     congressional defense committees no later than January 3, 
     2005 on a new plan which establishes and describes a process 
     which allows the rapid resourcing and fielding of radios, 
     terminals, or other communications systems which are not JTRS 
     compliant to meet the needs of units deploying in support of 
     Operation Iraqi Freedom (OIF), Operation Enduring Freedom 
     (OEF), and the Global War on Terrorism. Further, this report 
     should address the option of suspending the JTRS waiver 
     process until JTRS solutions are available for fielding. In 
     addition, the conferees direct the Secretary of the Army to 
     provide a report to the congressional defense committees no 
     later than November 1, 2004 on the disposition and shortages 
     of radios, terminals, or other communication systems which 
     are not JTRS compliant yet needed to support units deploying 
     in support of OIF and OEF. This report should provide a rapid 
     resourcing and fielding plan for radios, terminals, or other 
     communication systems that does not place the resourcing 
     burden on the individual unit commanders, yet meets their 
     operational needs.

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[[Page 16524]]



[[Page 16525]]



[[Page 16526]]



[[Page 16527]]



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[[Page 16534]]



[[Page 16535]]

      

[[Page 16536]]

                   Next Generation Destroyer (DD(X))

       The conferees agree to provide a total of $305,516,000 for 
     advance 7procurement for the DD(X) class of ships instead of 
     $320,516,000 as proposed by the Senate and no appropriation 
     as proposed by the House. The conferees direct the Navy to 
     include future funding requests for the DD(X) in the 
     Shipbuilding and Conversion, Navy appropriation.
       Within the funds provided, $221,116,000 is only for design 
     and advance procurement requirements associated with the 
     first ship of the DD(X) class and $84,400,000 is only for 
     design and advance procurement requirements associated with 
     construction of the second ship at an alternative second 
     source shipyard. The conferees direct that no funds shall be 
     available for the procurement of long lead time material for 
     items that are dependent upon delivery of a DD(X) key 
     technology unless that technology has undergone testing, 
     thereby reducing risk to overall program costs.
       The conferees direct that full funding of the remaining 
     financial requirement for these ships, not including 
     traditional advance procurement requirements, shall be 
     included in a future budget request.

                      DDG-51 Modernization Program

       The conferees agree to provide $50,000,000 to accelerate a 
     DDG-51 Modernization program, instead of $100,000,000 as 
     proposed by the House and no appropriation as proposed by the 
     Senate.
       The conferees direct that these funds may not be obligated 
     or expended until the Navy submits to the congressional 
     defense committees a detailed plan on its execution of a DDG-
     51 Modernization program that focuses first on modernizing 
     the new construction, near-term delivery ships and then on 
     the in-service Fleet ships. The plan should address each 
     element of the modernization plan, the cost-benefit of the 
     element, and the implementation of the plan by hull number.
       The conferees agree that the Navy's DDG-51 modernization 
     plan should emphasize proven technology and modularity 
     applications that will help increase warfighting 
     capabilities, reduce total ownership costs and manning 
     requirements, and expand the use of open architecture.

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[[Page 16543]]



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[[Page 16546]]



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[[Page 16548]]

      

[[Page 16549]]

                         Cruiser Modernization

       The conferees agree to provide no appropriation for Cruiser 
     Modernization as proposed by the Senate instead of the budget 
     request as proposed by the House.
       The conferees take this action reluctantly based on the 
     need to modernize these assets. However, the Navy's plan was 
     simply inadequate in its presentation and planned execution. 
     Furthermore, content of the modernization program changed 
     significantly from the proposal presented with the fiscal 
     year 2004 budget, while program cost remained the same, 
     calling into question the soundness of the Navy's efforts.
       The conferees remain interested in ensuring a modern Naval 
     Fleet and would encourage the Navy to continue to refine its 
     requirements with respect to modernization of the Cruiser 
     inventory and request funds as appropriate in a future budget 
     request.

                      Physical Security Equipment

       The conferees agree to provide $179,114,000 for Physical 
     Security Equipment instead of $197,214,000 as proposed by the 
     House and $157,714,000 as proposed by the Senate. The 
     conferees agree that of this amount, $17,900,000 may not be 
     obligated or expended until the Secretary of the Navy submits 
     a report to the House and Senate Committees on Appropriations 
     that addresses how the Navy intends to execute the 
     expenditure of the appropriated funds.
       The conferees further agree with the House position which 
     requests the Navy centralize decision-making authority for 
     all anti-terrorism and force protection requirements.

[[Page 16550]]

     
     


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[[Page 16562]]

      

[[Page 16563]]

                       C-17 Multiyear Procurement

       The conferees have provided an additional $158,600,000 in 
     funding for the procurement of 15 C-17s in fiscal year 2005. 
     Language has also been included in ``Aircraft Procurement, 
     Air Force'' requiring the Air Force to procure 15 aircraft in 
     fiscal year 2005; provide advance procurement for 15 aircraft 
     in 2006; and to fully fund 15 aircraft in fiscal year 2006. 
     The conferees agree with the House language regarding the Air 
     Force interpretation of multiyear procurement regulations in 
     this and the C-130J program. The conference report includes a 
     general provision amending multiyear procurement contract 
     requirements proposed in the House bill to prevent this 
     approach in the future.
       A general reduction in funding for Aircraft Procurement, 
     Air Force, has been included accordingly with a requirement 
     that the reduction be applied equitably across all elements 
     of this appropriation.

                    Tanker Replacement Transfer Fund

       The conference report includes a general provision, section 
     8132, which provides $100,000,000 to establish the ``Tanker 
     Replacement Transfer Fund''. The establishment of this fund 
     reflects the conferees' intent that the Air Force proceed 
     apace with replacing its fleet of aging aerial refueling 
     aircraft. In particular, the Department of Defense should 
     endeavor to complete as quickly as possible the ongoing 
     analysis of tanker replacement program alternatives.
       The funds provided under section 8132 may be used to 
     implement the current tanker replacement program of record. 
     The conferees note, however, that the fluid nature of the 
     situation surrounding this program prohibits a definitive 
     allocation of funds for specific activities. Thus, the 
     conference report provides the Secretary of the Air Force 
     with the authority to allocate these funds to Air Force 
     operation and maintenance, procurement, or research and 
     development accounts, allowing the Air Force to quickly 
     implement tanker acquisition plans once a final plan is 
     approved. In any case, the conferees strongly urge the 
     Department of Defense to thoroughly consider the effects on 
     the U.S. aircraft industrial base of any and all tanker 
     replacement program alternatives.

                    F/A-22 Independent Cost Estimate

       The conferees note that several significant decision points 
     regarding continued production of the F/A-22 lay in the not-
     so-distant future. The program recently entered into Initial 
     Operational Test and Evaluation, which is scheduled to 
     conclude in the fall. Following completion of IOT&E, the 
     Department will consider whether to grant authority for the 
     program to enter full rate production, whether and when to 
     request multiyear procurement authority, and as a subtext to 
     all of this, whether there is a need to increase the 
     production cost cap established under authorization law.
       The conferees believe this is the appropriate point in the 
     program to recalibrate F/A-22 cost models using the latest 
     information on current and projected costs. Accordingly, the 
     conferees direct the Under Secretary of Defense for 
     Acquisition Technology and Logistics to sponsor a new 
     comprehensive F/A-22 independent cost estimate (ICE), to be 
     conducted by a federally funded research and development 
     center (FFRDC) with demonstrated competence in this area in 
     coordination with the Defense Contract Audit Agency (DCAA). 
     This analysis should: (1) determine appropriate estimates of 
     unit costs and validate unit cost models and related 
     assumptions to include all pertinent pricing cost data based 
     on the latest projections of production efficiencies; (2) 
     identify optimal yearly production profiles that can be 
     financed under the budgetary framework contained in the 2005 
     Future Years Defense Plan; and, (3) determine appropriate 
     estimates of remaining non-recurring development, test, and 
     acquisition program oversight costs. The conferees expect 
     that the FFRDC will be allowed to both contract the services 
     of a private sector audit entity experienced in industry 
     costing techniques, and coordinate the execution and review 
     of this ICE with the DCAA. The conferees expect the F/A-22 
     prime contractor to provide full access and cooperation with 
     this analytical effort to the FFRDC, DCAA, and any private 
     sector audit agency involved under rules and procedures that 
     adequately protect the confidentiality of proprietary 
     financial data and manufacturing techniques. This ICE is to 
     be transmitted to the congressional defense committees not 
     later than August 15, 2005.

                    Heavy Outsized Airlift Capacity

       The conferees are aware of the on-going Mobility 
     Capabilities Study and the probability that the current 54.5 
     MTM/day requirement will increase. The conferees, similar to 
     the Air Force, recognize the value of filling whatever heavy, 
     outsized lift requirement is validated with the most cost 
     effective fleet structure to include better use of the 
     Civilian Reserve Air Fleet (CRAF). The conferees direct the 
     Secretary of the Air Force to provide the congressional 
     defense committees no later than March 31, 2005, an 
     assessment of options to introduce a U.S. owned, heavy, 
     outsized airlift capability into the CRAF based on potential 
     commercial uses of commercialized versions of U.S. heavy 
     outsized cargo aircraft without the need for government 
     investment or substantial involvement.

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[[Page 16566]]

      

[[Page 16567]]

             Joint Air-to-Surface Standoff Missile (JASSM)

       The conferees question the assessment of the Air Force with 
     regard to the presumed sound and proven design of JASSM. 
     Operational Test and Evaluation results ending in April found 
     mission reliability to be 53 percent, a figure the Air Force 
     has identified as meeting its benchmark for effectiveness. 
     JASSM mission reliability of 53 percent is poor in comparison 
     to similar weapons; Javelin reliability was 100 percent, JDAM 
     was 85 percent, JSOW-A was 95 percent, and Hellfire was 95 
     percent at the end of operational testing.
       The conferees note that this troublesome mission success 
     rate only continues to be validated by recent testing. As 
     recently as June 29, 2004, a JASSM launched from an F-16 
     failed to transition power from batteries to engine causing 
     the missile to crash well short of the target. In a June 8, 
     2004 test from a B-2, problems with the mission planning 
     system resulted in a mission failure. The two successful 
     launches from B-1 aircraft required mission planning time 
     even slower than that noted in the Operational Test and 
     Evaluation report.
       The conferees restate the concerns identified in the House 
     report and expect that improvements will be made to increase 
     the reliability of the baseline missile program. Failure to 
     do so will cause the conferees to reconsider their support 
     for this program and the extended range version.

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[[Page 16581]]

      

[[Page 16582]]

           C-130 Directional Infrared Countermeasures (DIRCM)

       The conferees agree to provide $14,400,000 for the Special 
     Operations Command C-130 DIRCM program. The conferees are 
     aware of the mean time between failure issues associated with 
     this equipment and are sensitive to the Command's operational 
     requirements and as such direct that the funds provided may 
     be only used for costs associated with refurbishment.

              Special Operations Command Publication Costs

       The conferees are concerned about the costs charged to 
     Special Operations Command (SOCOM) for publications. The 
     conferees find the publication costs associated with the MH-
     60 Service Life Extension Program (SLEP) particularly 
     excessive and recommend a reduction of $5,000,000 to the 
     budget request. The conferees direct the Command to initiate 
     a review of the publication costs associated with its major 
     acquisition programs and provide a report to the 
     congressional defense committees by February 1, 2005 on 
     actions taken to address this problem.

[[Page 16583]]

     
     
      

[[Page 16584]]

                   Items of Special Interior Interest

       The conferees agree that the National Guard and Reserve 
     equipment program shall be executed by the heads of the Guard 
     and Reserve components with priority consideration for 
     miscellaneous equipment appropriations given to the following 
     items: COTS Surveillance System, MTVR, Virtual Emergency 
     Response Training System, HMMWV Convoy/Trainer, Tactical Fire 
     Fighting Equipment, High Mobility Multipurpose Wheeled 
     Vehicle (HMMWV), Army M249 5.56 Squad Automatic Weapon, 
     National Guard- Paul Revere Command Information System, Life 
     Support for Trauma and Transport (LSTAT), M-COFT XXI Program, 
     AB-FIST Non-Systems Training Devices, Army Live Fire Ranges, 
     Combat Arms Training System--Army National Guard, Calibration 
     Sets Equipment Modernization, Mobile Operational Simulators 
     (MOS), Modern Burner Unit, LITENING Targeting Pods, LAIRCM, 
     SINCGARS, AN/PVS14, UH-60L/M, HEMTT, Small Arms, Javelin, AN/
     PAS-13, Movement Tracking System, EPLRS, Shortstop, TUAV, 
     Prophet, C-130G2 APN-241 Radar, F-15 JHMCS, JSTARS AMSTE, F-
     16 APG-68(V)9, F-16 Color Displays, A-10 TDL, HH-60 TDL, Para 
     rescue TDL, C/EC-130 TDL, HH60G 200 Gallon Internal Fuel 
     Tank, HH-60G PNVG, F-15E Engine Kits, FMTV, Eagle Vision, 
     Abrams MlA1 Fleet Embedded Diagnostics, Combo PAK, DFIRST, F-
     16 Block 30 MTC, HCLOSF, CSAR AR Blackhawk Equipment, 
     Engagement Skills Trainer, M762A1/M767A1 Fuse Artillery 
     Electronic Timer, XM879E1 81mm Mortar Full Training 
     Cartridge, XM932 120mm Mortar Short Range Practice Cartridge, 
     XM931 120mm Mortar Full Range Training Round, M933 120mm 
     Mortar (HE), M-22 ACADA, PVS-14 Night Vision Goggles, Joint 
     Threat Emitter, HH-60L Helicopter, Laser Marksmanship 
     Training System, PRC-150D Radio, Tabletop Gunnery Trainer, 
     Tabletop Full-fidelity Trainer, DFIRST, C-27J Medium Tactical 
     Cargo Aircraft, Digital Deployable Training Campus, SINCGARS 
     Radio SAASM Upgrade, ARNG Tactical Bridge Companies, UH-60 
     SAR Thermal Imaging Upgrades, and Sniper Advanced Targeting 
     Pod.

[[Page 16585]]

     
     


[[Page 16586]]

      

[[Page 16587]]

                  Congressional Special Interest Items

       Items for which additional funds have been provided as 
     shown in the project level tables or in paragraphs using the 
     phrase ``only for'' or ``only to'' in this report 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 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.

                        F-35 Program Management

       In lieu of the direction provided by the House or the 
     Senate, the conferees direct the Secretary of Defense to 
     review current management oversight of the Joint Strike 
     Fighter, and to report findings and recommendations to the 
     congressional defense committees not later than December 15, 
     2004.

         Air Force and DARPA FALCON/Common Aero Vehicle Program

       The conferees agree to provide $29,110,000 for the Air 
     Force and DARPA FALCON/Common Aero Vehicle (CAV) programs. 
     The conferees are concerned that safeguards are not in place 
     to guarantee that nations possessing nuclear weapons 
     capabilities would not misinterpret the intent or use of the 
     FALCON/CAV programs. Therefore, the funds provided herein are 
     for the development of hypersonic technologies for non-
     weapons related research, such as micro-satellite or other 
     satellite launch requirements and other purposes as listed 
     under the conferees recommendations. The conferees direct 
     that none of the funds provided in this Act may be used to 
     develop, integrate, or test a CAV variant that includes any 
     nuclear or conventional weapon. The conferees further direct 
     that none of the funds provided in this Act may be used to 
     develop, integrate, or test a CAV for launch on any 
     Intercontinental Ballistic Missile or Submarine Launched 
     Ballistic Missile. The Committees on Appropriations will 
     consider expanding the scope of this program in subsequent 
     years if safeguards negotiated among our international 
     partners have been put in place.

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[[Page 16598]]



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[[Page 16618]]

      

[[Page 16619]]

                          Future Combat System

       The conferees direct that the Army adhere to the following 
     funding structure in execution of appropriations provided for 
     fiscal year 2005, and in preparation of the fiscal year 2006 
     budget request.

0604645A: Armored Systems Modernization..................$2,374,010,000
  --System of Systems (SoS) Engineering and Program Management, Family 
    of Systems Analysis and Integration, Network Software, Systems 
    Integration Platforms-Management, SoS Test and Evaluation, 
    Government Cost, Other Contract Cost..................1,570,610,000
  --Sustainment..............................................53,600,000
  --UAV Reconnaissance & Sensors............................154,200,000
  --Unmanned Ground Vehicles................................137,100,000
  --Manned Ground Vehicles..................................429,000,000
  --Unattended Ground Sensors................................29,500,000
New P.E.: Non-Line of Sight Launch System....................58,200,000
0604647A: Non Line of Sight Cannon (NLOS-C).................497,643,000
                                                       ________________
                                                       
  Total...................................................2,929,853,000
       The projects identified within program element 0604645A, 
     Armored Systems Modernization, are congressional special 
     interest items for the purpose of prior approval 
     reprogrammings as discussed elsewhere in this report. Funds 
     provided in a new program element for the Non Line of Sight 
     Launch System (NLOS-LS) are subject to normal prior approval 
     reprogramming procedures as described elsewhere in this 
     report.
       The conferees direct that the Secretary of the Army provide 
     a report to the congressional defense committees not later 
     than November 1, 2004, that outlines the program definition 
     including missile configurations for NLOS-LS.

                        Non Line of Sight Cannon

       The conferees agree with the guidance provided in the House 
     report accompanying the fiscal year 2005 DoD Appropriations 
     bill concerning the Non Line of Sight Cannon and Resupply 
     Vehicle (NLOS-C). Accordingly, the conference agreement 
     includes a general provision (Sec. 8109) that directs the 
     Army to program and budget for NLOS-C for fielding in 2010. 
     The conferees direct that fielding shall be conducted as 
     defined by Army Regulation 700-142.
       As noted elsewhere in the report, the budget request 
     includes $497,643,000 for NLOS-C. The conferees recognize 
     that $93,686,000 of this amount was requested explicitly for 
     the purpose of developing mission equipment unique to NLOS-C. 
     Accordingly, the conferees direct that this amount is a 
     congressional special interest item for the purpose of prior 
     approval reprogrammings.

                 Land Warrior and Future Force Warrior

       The conferees direct the Secretary of the Army to submit to 
     the congressional defense committees a plan, not later than 
     January 31, 2005, to consolidate the Land Warrior and Future 
     Force Warrior programs into a single program, benefiting from 
     the efficiencies of each. The conferees also recommend a 
     reduction to the Future Force Warrior program of $5,000,000 
     and a reduction to the Land Warrior program of $15,000,000, 
     as a result of anticipated efficiencies gained through 
     consolidation of these two programs. The consolidated program 
     should take on the focus of the Army's Future Combat System 
     (FCS) and provide the Army with a FCS dismounted capability 
     for the individual soldier. Further, the conferees understand 
     that it is possible to field a dismounted capability 
     immediately to the Stryker Brigades currently deployed in 
     combat. Therefore, the conferees recommend that the combined 
     program re-focus its procurement strategy to incorporate 
     these emerging capabilities, such as the Commanders Digital 
     Assistant (CDA) and hand-held EPLRS capabilities, into the 
     Stryker brigades immediately.

                          Aerial Common Sensor

       The Aerial Common Sensor (ACS) program, when fielded, will 
     be the Army's premier multi-intelligence, precision targeting 
     airborne intelligence, surveillance and reconnaissance (ISR) 
     capability. This state of the art platform will replace the 
     Army's Guardrail Common Sensor and Airborne Reconnaissance 
     Low systems. The conferees note that the fiscal year 2005 
     budget request included $149,000,000 to initiate this 
     critical intelligence modernization program based on an 
     anticipated award date of January, 2004. Unfortunately, the 
     Army has yet to make any contract award. The revised estimate 
     of the award date is at least 8 months beyond the date 
     briefed to Congress. For this reason, the Senate bill reduced 
     the program by $50,000,000. The conferees remain concerned 
     with the pace of this program and in particular, note that it 
     is a critical program whose delay only sets back the Army's 
     ISR mission. The conference agreement provides $129,000,000 
     for the Aerial Common Sensor program, a reduction of 
     $20,000,000.

        Patriot PAC-3/Medium Extended Air Defense System (MEADS)

       The conferees support the view expressed in the report 
     accompanying the House version of the fiscal year 2005 
     Department of Defense Appropriations bill that DoD should 
     continue its plans to merge the PAC-3 and MEADS programs 
     under Army cognizance. The conferees are also concerned about 
     the delays in implementing this management structure, and 
     their potential effect. Accordingly, the conferees direct the 
     Secretary of the Army to develop a plan to merge these 
     programs as directed by the April 2003 Acquisition Decision 
     Memorandum, and provide a report to the congressional defense 
     committees on this plan not later than February 15, 2005.

          Guided Multiple Launch Rocket System (GMLRS)-Unitary

       The conferees provide an additional $12,750,000 above the 
     budget request of $97,422,000 for the Multiple Launch Rocket 
     System (MLRS) Product Improvement program, for a total of 
     $112,422,000 to accelerate development and fielding of the 
     GMLRS-Unitary munition to US forces in high-risk locations by 
     fiscal year 2006. The conferees direct that this total amount 
     is a congressional special interest item for the purpose of 
     prior approval reprogrammings.

                         Land Mine Alternatives

       The conferees direct the Secretary of the Army to submit a 
     report on land mine alternatives as directed by the Senate to 
     the congressional defense committees by no later than January 
     3, 2005.

                  Broadband Language Training Programs

       The conferees support the development of Broadband Language 
     Training programs and, accordingly, provide $3,000,000 to 
     advance Broadband Language Training Systems at the Defense 
     Language Institute (DLI) within the newly established DLI 
     program element as described elsewhere in this report. The 
     conferees understand that issues have arisen delaying the 
     execution of the fiscal year 2004 funding for this program. 
     Accordingly, the conferees recommend a rescission of 
     $4,000,000 from Research, Development, Test and Evaluation, 
     Army funds made available in fiscal year 2004.

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[[Page 16653]]



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[[Page 16655]]

                  Joint Strike Fighter STOVL Lift Fan

       The conferees direct that in addition to funds currently 
     budgeted for STOVL Lift Fan technologies, no less than 
     $8,000,000 of the funds provided for the Joint Strike Fighter 
     program shall be for STOVL Lift Fan thrust increase studies.

                Amphibious Assault Ship--LHA Replacement

       The conferees agree to provide $44,180,000 for the 
     Amphibious Assault Ship--LHA Replacement, LHA(R), program as 
     requested and as proposed by the Senate instead of no 
     appropriation as proposed by the House.
       The conferees agree that the Secretary of the Navy shall 
     submit to the Committees on Appropriations of the House and 
     Senate, a report within 90 days of enactment of this Act that 
     addresses a thorough review of the LHA(R) requirement, the 
     impact of the proposed ship on executing the Marine Corps 
     amphibious assault mission, the overall cost and acquisition 
     objective of LHA(R), and the acquisition strategy.

                    Next Generation Destroyer--DD(X)

       The conferees agree to provide $1,176,469,000 for the DD(X) 
     program instead of $1,182,785,000 as proposed by the House 
     and $1,210,469,000 as proposed by the Senate.
       The conferees agree that prior to the completion of the 
     Critical Design Review (CDR), the Navy should complete land-
     based testing of the Advanced Gun System (AGS) and the 
     Integrated Power System (IPS). The conferees believe it is 
     not advisable to complete CDR prior to ensuring that at least 
     two of the 12 key technologies have completed testing due to 
     historical trends of ship cost growth based on re-design to 
     accommodate changes in technological requirements.
       The conferees direct the Navy to submit a report to the 
     congressional defense committees that addresses the Navy's 
     plan to transition DD(X) key technologies through 
     development, testing, acquisition, and installation. This 
     report should also address ``back up'' technologies that 
     could be inserted into the DD(X) program should the maturity 
     of the planned technology not materialize within a timeline 
     necessary to meet the stated DD(X) schedule.

                          Littoral Combat Ship

       The conferees agree to provide $457,089,000 for the 
     Littoral Combat Ship (LCS) program instead of $409,089,000 as 
     proposed by the House and $352,089,000 as requested and 
     proposed by the Senate.
       The conferees agree with the Senate that all follow-on 
     ships, beyond one of each prototype design, should be fully 
     funded in the Shipbuilding and Conversion, Navy 
     appropriation. The conferees also agree that substantial 
     testing of the LCS and associated mission modules is required 
     to evaluate each ship design and validate operational 
     requirements. Therefore, the conferees direct that no funds 
     shall be obligated to prepare a fiscal year 2006 budget 
     request for construction of a third vessel, as reflected in 
     the conference agreement including Section 8092 as originally 
     proposed by the Senate. This directive is intended to provide 
     for a ``gap'' year between construction of the prototype 
     ships and the follow-on construction of a second ship of each 
     design, thereby ensuring that design problems discovered 
     during the prototype phase of each ship design are identified 
     and corrected before construction of follow-on ships. The 
     conferees also agree with the Senate that beginning in the 
     fiscal year 2006 budget request, the Navy should identify LCS 
     mission module funding separately within the Research, 
     Development, Test and Evaluation, Navy and Other Procurement, 
     Navy appropriations.

                    Corrosion Resistant Marine Paint

       The Navy spends approximately 25 percent of its fleet 
     maintenance budget on corrosion protection. The conferees are 
     aware of and support research performed by the Center for 
     Photochemical Sciences that develops corrosion resistant 
     marine paint using photo-cure technology. These new photo-
     cure technologies can increase corrosion protection while 
     reducing environmentally harmful emissions. The conferees 
     believe this technology provides unique advantages over 
     current materials and directs the Office of Naval Research to 
     continue current year funding for this important research 
     project.

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[[Page 16673]]



[[Page 16674]]

      

[[Page 16675]]

                           Space Based Radar

       The conferees agree with the House position.

                       Airborne Electronic Attack

       The conference report provides $113,693,000 for Electronic 
     Warfare Development. Noting the prevalence of significant 
     industry efforts and capability in the field, the House 
     report denied funding for transmitter and receiver technology 
     development for a new stand-off jamming pod capability for 
     the B-52. The conferees believe that the Air Force objective 
     can be achieved quicker and at far less cost than the budget 
     proposed through greater coordination with industries of 
     expertise in this area. The Air Force has acknowledged this 
     opportunity and expressed an interest to pursue such an 
     objective. Accordingly, the conference report removes the 
     restrictions on technology development for this purpose with 
     the expectation that the Air Force will take advantage of the 
     current state of technology and short-term developments 
     potentially available to meet this requirement. The conferees 
     further expect that the Air Force will take into account the 
     cost savings associated with this opportunity in the fiscal 
     year 2006 budget submission for this program.

   Instrumentation, Loading, Integration, Analysis and Documentation

       The conferees recognize the critical role of digital 
     technology in flight testing and commends the leadership of 
     Edwards AFB, Eglin AFB, Barksdale AFB, White Sands Missile 
     Range, and Fort Rucker for recent investments in modern 
     instrumentation, data capture, data analysis and data 
     archiving technology. The conferees support the continued 
     deployment of ILIAD, an electronic test data management 
     system, to provide cost-effective and efficient collection, 
     protection, validation, and sharing of critical test and 
     evaluation data. The use of this technology to manage test 
     and evaluation data throughout its lifecycle eliminates 
     costly and redundant testing. Further, based upon its success 
     supporting numerous weapons platforms in multiple geographic 
     locations, the conferees urge the Department of the Air Force 
     to consider leveraging the Air Force's ILIAD solution for the 
     Joint Strike Fighter and other weapons programs.

                     C-17 Flight Test Data Archive

       The conferees support the migration of C-17 flight test 
     data from magnetic tapes to fixed-content disk drive 
     technology that has no end of life concerns; places test data 
     in an ``on-line'' format with clear indexing; and allows 
     timely retrieval regardless of data volume. Given the 
     importance of flight test data, the ability to retrieve 
     specific data at a future date, as well as the cost-
     effectiveness of fixed-content technology, the conferees 
     encourage all System Program Offices to consider the benefits 
     of archiving test data in this manner.

                 Air Force ``Minority Leaders'' Program

       The conferees expect that funds available for the Air Force 
     ``MINORITY LEADERS'' program shall be available for research 
     in the areas of both materials and aerospace sensors.

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[[Page 16697]]

      

[[Page 16698]]

              Joint Unmanned Combat Aerial System (JUCAS)

       The conferees agree to provide a total of $586,490,000 for 
     the Joint Unmanned Combat Aerial System (JUCAS) program 
     instead of $710,401,000 as proposed by the House and 
     $510,401,000 as proposed by the Senate.
       The conferees agree with the Senate position that the JUCAS 
     program has not been properly coordinated with the Services 
     and that the focus of the program should be on meeting the 
     requirements of the Air Force and Navy. To this end, the 
     conferees direct that $363,617,000 of the funds provided for 
     the JUCAS shall be used to complete and demonstrate the 
     unmanned combat aerial vehicle technology demonstrators in 
     support of Air Force and Navy requirements for such systems.
       The conferees agree to provide $222,873,000 for JUCAS 
     Advanced Component and Prototype Development, as proposed by 
     the Senate instead of $260,784,000 as proposed by the House.

                     Focus Center Research Program

       The conferees intend that the $10,000,000 allocated for 
     DARPA Defense Research Sciences, Electronic Sciences, 
     Semiconductor Technology Focus Center, as requested by the 
     Administration, be used for basic university research to 
     supplement the $7,000,000 appropriated for the Focus Center 
     Research Program through the Defense Research and Engineering 
     account. This would provide a total of $17,000,000 for basic 
     university research by continuing the successful industry, 
     university, and federal agency Focus Center Research 
     partnership. The Focus Center program is designed to develop 
     the next generation of semiconductor microelectronics 
     technologies, increase the United States' global advantage in 
     semiconductor technology, and train the next generation of 
     electronics engineers.

                        Missile Defense Programs

       The conference agreement provides $9,050,031,000 for the 
     Missile Defense programs included in Research, Development, 
     Test and Evaluation, Defense-Wide. Of this amount, 
     $4,620,825,000 is for the Ballistic Missile Defense (BMD) 
     Midcourse Segment program. The conferees direct that the 
     entire amount provided for the BMD Midcourse Segment is a 
     congressional special interest item for the purpose of prior 
     approval reprogramming, as described elsewhere in this 
     report. The conferees also direct that adjustments made to 
     the various Missile Defense Agency (MDA) program elements, as 
     reflected on the project level tables, are congressional 
     special interest items.
       The conferees direct that transfers of funds between the 
     MDA program elements are subject to the same reprogramming 
     guidance applicable to all other research, development, test 
     and evaluation funded activities. Specifically, the conferees 
     direct that the Missile Defense Agency observe the cumulative 
     $10,000,000 threshold for the reprogramming of research, 
     development, test and evaluation funds. If the combined value 
     of transfers into or out of a research and development (R-1) 
     line exceeds this threshold, the Department of Defense must 
     submit a prior approval reprogramming request to the 
     congressional defense committees. The Department shall also 
     observe the limitation that prior approval reprogrammings are 
     set at either the specific dollar threshold or 20 percent of 
     the procurement or research and development line, whichever 
     is less. The conferees further direct that any taxes, 
     withholds or undistributed reductions to the MDA programs be 
     made in accordance with applicable guidance described 
     elsewhere in this report.

                            BMDS Operations

       The conferees strongly support the Ground-Based Midcourse 
     (GMD) program. The conferees further understand that this 
     program has experienced significant funding challenges 
     associated with the decision to begin fielding missile 
     defense for the United States in late 2004. Accordingly, the 
     conferees have provided an additional $200,000,000, 
     specifically to address these requirements. Furthermore, the 
     conferees direct the Missile Defense Agency to fully fund 
     this critical program in the fiscal year 2006 budget 
     submission to include manning, operation and maintenance, 
     contractor logistical support, and physical security and 
     force protection costs. The conferees expect the fiscal year 
     2006 budget request to provide this level of detail regarding 
     BMDS operations and costs. In addition, the conferees direct 
     that the Secretary of Defense submit to the congressional 
     defense committees not later than February 7, 2005, a report 
     that outlines the DoD plan to provide adequate resources 
     necessary for the operation and maintenance (including 
     logistical support and physical security) and manning of the 
     Ballistic Missile Defense System.

                  Integrated Flight Test-13C (IFT-13C)

       The conferees are aware that the Missile Defense Agency 
     (MDA) is finalizing preparations for Integrated Flight Test-
     13C scheduled for August 2004. The conferees share the view 
     expressed in the report accompanying the House version of the 
     fiscal year 2005 DoD Appropriations bill that this test 
     represents an important milestone. The conferees are also 
     aware that logistical details may potentially change the date 
     of this test. Accordingly, the conferees direct the Director 
     of the Missile Defense Agency to provide a report to the 
     congressional defense committees within 30 days of the 
     conclusion of IFT-13C, in both classified and unclassified 
     form, including a detailed assessment of the results of IFT-
     13C.

                                Scorpius

       The conference agreement includes an additional $3,000,000 
     to continue work on the Scorpius family of rockets. In past 
     years, the Congress has provided additional funding above the 
     budget request and is concerned by DoD's lack of effort to 
     follow through on this program. Accordingly, the conferees 
     direct the Secretary of the Air Force and the Director of the 
     Missile Defense Agency to jointly provide a report to the 
     congressional defense committees on the Department's proposed 
     course of action for this program within 30 days of enactment 
     of this Act. The conferees further direct that the report 
     identify the resources required to complete the program, and 
     whether such resources are included in the Future Year's 
     Defense Program.

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[[Page 16701]]

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       The conferees recommend an appropriation of $1,174,210,000 
     for the Defense Working Capital Funds as proposed by the 
     House instead of $1,685,886,000 as proposed by the Senate.

                     National Defense Sealift Fund

       The conferees agree to provide a total of $1,204,626,000 
     for the National Defense Sealift Fund instead of 
     $1,186,990,000 as proposed by the House and $441,936,000 as 
     proposed by the Senate.
       Within the funds provided, the conferees agree that 
     $768,400,000 is for construction of two T-AKE vessels as 
     proposed in the fiscal year 2005 budget request and 
     $28,000,000 is for the Maritime Pre-positioning Fleet 
     (Future), MPF(F).
       The conferees agree that none of the funds provided for the 
     MPF(F) may be obligated or expended until the Secretary of 
     the Navy submits to the congressional defense committees, a 
     detailed report on the MPF(F) mission, operational 
     requirements, analysis of alternatives, expenditure plans, 
     and overall program congruence with ongoing forcible entry 
     studies.

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[[Page 16703]]



[[Page 16704]]



[[Page 16705]]



[[Page 16706]]

      

[[Page 16707]]

            Defense Health Program Reprogramming Procedures

       The conferees remain concerned regarding the transfer of 
     funds from Direct (or In-house) Care to pay for contractor-
     provided medical care. To limit such transfers and continue 
     oversight within the Defense Health Program operation and 
     maintenance account, the conferees have included bill 
     language which limits the funds available for Private Sector 
     Care under the TRICARE program subject to prior approval 
     reprogramming procedures. In addition, the conferees also 
     designate the funding for the Direct Care System as a special 
     interest item, as defined elsewhere in this report. Any 
     transfer of funds from the Direct (or In-house) Care budget 
     activity into the Private Sector Care budget activity or any 
     other budget activity will require the Department of Defense 
     to follow prior approval reprogramming procedures. The bill 
     language and accompanying report language included by the 
     conferees should not be interpreted by the Department as 
     limiting the amount of funds that may be transferred to the 
     direct care system from other budget activities within the 
     Defense Health Program.
       In addition, the conferees direct the Department of Defense 
     to 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 accounting form.

                 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 human tissue 
     matrix research; amyotrophic lateral sclerosis; alcoholism 
     research; anti-radiation drug development; autism; blood-
     related cancer research; Interstitial Cystitis; childhood 
     asthma; chronic pain research; conjugate vaccines to prevent 
     shigellosis; diabetes research; Duchenne's disease research; 
     epilepsy research; Lupus and LupusBiomarker Research; 
     orthopaedic extremity trauma research; osteoporosis and bone-
     related diseases; Padget's disease; post traumatic stress 
     disorders; social work research; Volume Angio CAT (VAC) 
     research; and autoimmune diseases such as scleroderma and 
     Sjogren's syndrome.
       The conferees direct the Department to provide a report by 
     March 1, 2005, on the status of this Peer Reviewed Medical 
     Research Program.

     Walter Reed Army Medical Center--Amputee Patient Care Program

       Ongoing combat operations have produced a surge from 3 to 6 
     percent in complex combat injuries involving amputations of 
     major limbs. The Military Amputee Patient Care Program 
     headquartered at Walter Reed Army Medical Center provides a 
     center of expertise for state-of-the-art treatment, the 
     rehabilitation of military amputee patients to the highest 
     level of physical function, and a return to active duty if 
     possible. The conferees commend the Army and those associated 
     with this vital effort.
       The conferees recommend an additional $19,200,000 over the 
     budget request for this program. This includes $7,800,000 for 
     operating costs associated with the center, including but not 
     limited to personnel, equipment, patient travel, and 
     prosthetic device costs; and $10,000,000 for prosthetic limb 
     development and increased clinical and applied collaborative 
     research in prosthetic care. Finally, the conferees provide 
     an additional $1,400,000 for procurement of support equipment 
     to enhance the new facility at Walter Reed Army Medical 
     Center.

                           Army Fisher Houses

       The conferees include a General Provision as proposed by 
     the House, which provides $2,000,000 for construction and 
     furnishing of additional Fisher Houses to meet the needs of 
     military family members when confronted with the illness or 
     hospitalization of an eligible military beneficiary.
       The conferees also provide $9,500,000 in the Defense Health 
     Program for the Army's nonappropriated fund instrumentalities 
     (NAFI), as opposed to $11,000,000 proposed by the House. The 
     conferees are aware that the NAFI, which was established by 
     law to help defray the operating costs of Fisher Houses, have 
     decreased in value due to poor financial market performance. 
     The conferees are also aware that the costs to manage many 
     Fisher Houses are much higher than planned due to an influx 
     of patients at military treatment facilities as a result of 
     casualties suffered during Operations Iraqi and Enduring 
     Freedom. The funds provided to the NAFI will help to mitigate 
     any deficit which may occur in fiscal year 2005 and prevent 
     this deficit in future years. The conferees direct the 
     Secretary of Defense to analyze the financial condition of 
     the Fisher House operating accounts and submit a report to 
     the congressional defense committees by March 1, 2005.

                         Mental Health Services

       The conferees believe that hardships resulting from U.S. 
     troop deployments to Iraq and Afghanistan make it imperative 
     for the Department of Defense to offer adequate mental health 
     services for active duty and reserve members deployed to 
     combat theaters. The conferees also are concerned that 
     sufficient mental health services be made readily available 
     to dependents of active duty and reserve members. As such, 
     the conferees direct the Secretary of Defense to conduct a 
     comprehensive review of mental health services available to 
     our military members deployed in combat theaters, as well as 
     a review of services that may be available to their 
     dependents during and after a military member's deployment. 
     The report should be submitted to the congressional defense 
     committees no later than 180 days after enactment of this 
     bill. The review should include, but not be limited to, the 
     following subjects:
       --Data on the average number of service days lost due to 
     mental health reasons;
       --The types of measures taken by the military services to 
     reduce the stigma often associated with mental health 
     counseling;
       --An analysis of mental health services available--and 
     barriers to access--to active duty and reserve members and 
     their dependents (including dependents of activated members 
     of the National Guard and Reserve Components);
       --An analysis of the extent to which the U.S. Army has 
     implemented the recommendations of the Army's Mental Health 
     Advisory Team; and
       --A plan for actions that the Secretary of Defense 
     determines appropriate for improving the delivery of mental 
     health services to members of the Armed Forces and their 
     dependents.
       The conferees further direct the Secretary of Defense to 
     submit a report to the congressional defense committees not 
     later than 360 days after enactment of this bill describing 
     the actions taken to implement the aforementioned plan and 
     the reason why actions in the plan have not been completed, 
     if any.

                        Third Party Collections

       The House and Senate both expressed concern with the lack 
     of third-party collections as outlined in General Accounting 
     Office (GAO) report 04322R. According to the GAO report, 
     DoD's Third-Party Collections Program generates on average 
     about $122 million annually. However, total collections for 
     fiscal year 2003 were down $30 million from the previous 
     year, and the GAO has further documented that DoD fails to 
     collect $44 million a year from third party insurers. It is 
     clear that DoD's failure to effectively bill and collect from 
     third-party insurers pursuant to law precludes the military 
     treatment facilities from maximizing the resources available 
     to them. The conferees also have concerns that DoD reduced 
     its Information Technology budget for third-party outpatient 
     collection systems from fiscal year 2004 to fiscal year 2005.
       The conferees direct the Department to report to the 
     congressional defense committees by April 1, 2005, regarding 
     the status of the transition to outpatient itemized billing 
     and how third-party collections have progressed since the 
     implementation of this system began in fiscal year 2003. 
     Finally, the conferees direct the Assistant Secretary of 
     Defense (Health Affairs) to make the necessary business 
     process improvements to ensure that Military Treatment 
     Facilities are collecting all appropriate third party 
     payments, and to submit quarterly reports to the 
     congressional defense committees on the status of collections 
     during the current fiscal year.

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[[Page 16711]]

                    Office of the Inspector General

       The conferees have agreed to provide a total amount of 
     $204,562,000 for the Office of the Inspector General. Of this 
     amount $202,362,000 shall be for operation and maintenance, 
     $2,100,000 shall be for procurement, and $100,000 shall be 
     for research, development, test and evaluation. The conferees 
     have provided funds to ensure that aggressive implementation 
     of all efforts to achieve the Department of Defense's high 
     priority goal of gaining clean and auditable financial 
     statements is supported including necessary growth in audit 
     capability.

                         Energy Contract Review

       The conferees are aware that the Department of Defense 
     issued a $36,000,000 contract to Reliant Energy Solutions 
     East to provide electricity to military installations on May 
     19, 2004. The Federal Acquisition Regulation authorizes the 
     suspension of a contractor on the basis of adequate evidence 
     of any offense ``indicating a lack of business integrity or 
     business honesty that seriously and directly affects the 
     present responsibility of the contractor.'' The conferees 
     direct the Department of Defense Inspector General to review 
     the contract and to take any necessary action against Reliant 
     Energy, Inc. and its subsidiaries, if appropriate. The 
     Department is directed to report to the Committees on 
     Appropriations within 180 days of enactment of this Act on 
     the findings of its review and any subsequent actions taken 
     on this contract.

                      TITLE VII--RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

       The conference agreement appropriates $239,400,000 for 
     payment to the Central Intelligence Agency Retirement and 
     Disability System Fund, as proposed by both the House and the 
     Senate.

               Intelligence Community Management Account


                     (including transfer of funds)

       The conference agreement appropriates $310,466,000 instead 
     of $309,644,000 as proposed by the House and $319,355,000 as 
     proposed by the Senate.
       The conference agreement provides for a transfer of 
     $39,422,000 to the Department of Justice for the National 
     Drug Intelligence Center to support the Department of 
     Defense's counter-drug intelligence responsibilities, instead 
     of $46,100,000 as proposed by the House and $34,911,000 as 
     proposed by the Senate.

                 National Security Education Trust Fund

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

                     TITLE VIII--GENERAL PROVISIONS

       The conference agreement incorporated general provisions of 
     the House and Senate versions of the bill which were not 
     amended. Those general provisions that were amended in 
     conference follow:
       The conferees included a general provision (Section 8005) 
     which amends language, as proposed by the House and the 
     Senate, that increases the level of general transfer 
     authority for the Department of Defense, and provides that 
     transfers between military personnel appropriations shall not 
     be taken into account for purposes of the limitation of funds 
     which may be transferred under this section.
       The conferees included a general provision (Section 8014) 
     which amends language, as proposed by the House, setting 
     limitations on conversion of Defense Department activities to 
     contractor performance.
       The conferees included a general provision (Section 8025) 
     which amends language, as proposed by the Senate, earmarking 
     up to $2,500,000 of ``Operation and Maintenance, Air Force'', 
     for the acquisition of Native Allotment F-14589.
       The conferees included a general provision (Section 8028) 
     which amends language, proposed by the House and Senate, with 
     respect to Federally Funded Research and Development Centers.
       The conferees included a general provision (Section 8049) 
     which amends language, as proposed by the House and Senate, 
     recommending rescissions. The rescissions agreed to are:


                             (rescissions)

2002 Appropriations: Shipbuilding and Conversion, Navy: Cruiser 
  Conversion................................................$14,000,000
2003 Appropriations:
  Former Soviet Union Threat Reduction: Unobligated balances.50,000,000
  Aircraft Procurement, Navy: Unobligated balances...........50,000,000
  Aircraft Procurement, Air Force: Unobligated balances......50,000,000
2004 Appropriations:
  Other Procurement, Army: Soldier Enhancement...............16,000,000
  Aircraft Procurement, Navy: EA-6 Series (Outer Wing Panels)32,800,000
  Shipbuilding and Conversion, Navy: SSN ERO (SSN 716).......10,300,000
                                             Weapons Procurement, Navy:
    Cruiser Modernization.....................................6,100,000
    ASW Targets (MK-30 MOD2).................................19,100,000
                                               Other Procurement, Navy:
    Minesweeping Replacement..................................5,200,000
    Cruiser Conversion.......................................36,500,000
                                             Procurement, Marine Corps:
    AAV7A IPIP...............................................28,000,000
    Amphibious Raid Equipment................................12,200,000
  Other Procurement, Air Force: Classified Programs.........100,000,000
                                             Procurement, Defense-Wide:
    ASDS.....................................................23,571,000
    CV-22 SOF Modification...................................11,000,000
                      Research, Development, Test and Evaluation, Army:
    MEADS....................................................25,000,000
    Biomedical Engineering Technology and Advanced Material...1,000,000
    Broadband Intelligence Training System....................4,000,000
                      Research, Development, Test and Evaluation, Navy:
    Unmanned Combat Aerial Vehicle...........................15,000,000
    Joint Direct Attack Munitions (JDAM) Hornet Autonomous Real-Time 
      Targeting (HART).......................................31,500,000
    Mobile User Objective System (MUOS).....................102,000,000
                 Research, Development, Test and Evaluation, Air Force:
    Unmanned Combat Aerial Vehicle...........................15,000,000
    Classified Programs.......................................9,000,000
    ADV Polar................................................13,000,000
    Global Hawk...............................................6,000,000
    Common Configurable Remote Interface Unit Initiative......3,500,000
    C-5 Airlift Squadrons....................................11,166,000
              Research, Development, Test and Evaluation, Defense-Wide:
    Center for Information Assurance..........................2,100,000
    Airborne Laser...........................................40,000,000
    RAMOS....................................................26,500,000
    Computing and Communications Technology--Language Translat6,800,000
    Operational Systems Development--Management Headquarters..3,300,000

       The conferees included a general provision (Section 8067) 
     which amends language, as proposed by the Senate, to conform 
     to current authorization law regarding fees that the 
     Department of State charges to the Department of Defense for 
     the maintenance, upgrade, or construction of U.S. diplomatic 
     facilities. The conferees also provide an exemption to the 
     Central Intelligence Agency with regard to the calculation of 
     these fees.
       The conferees included a general provision (Section 8082) 
     which amends language, as proposed by the House, to provide 
     for crediting refunds from government purchase cards, travel 
     cards, and travel arrangements to current accounts in 
     operation and maintenance, and research, development, test 
     and evaluation. The conferees did not make the provision 
     permanent.
       The conferees included a general provision (Section 8090) 
     which amends language, as proposed by the House and Senate, 
     to change the dollar amount available for transfer.
       The conferees included a general provision (Section 8092) 
     which amends language, as proposed by the Senate, on the 
     Littoral Combat Ship by adjusting the citation for the total 
     amount appropriated.
       The conferees included a general provision (Section 8096) 
     which amends language, as proposed by the House and Senate 
     concerning the Arrow missile defense program. The conference 
     agreement provides a total of $155,290,000 for the Arrow 
     program of which $68,000,000 is earmarked for missile 
     component coproduction.
       The conferees included a general provision (Section 8097) 
     which amends language, as proposed by the House, on providing 
     a grant to the California Central Coast Research Partnership.
       The conferees included a general provision (Section 8098) 
     which amends language, as proposed by the Senate, that 
     transfers funds to the Coast Guard for mission essential 
     equipment, and includes language which transfers funds to the 
     Department of the Interior.
       The conferees included a general provision (Section 8099) 
     which amends language, as proposed by the House and Senate to 
     provide for transfer of funds for the cost of prior year 
     shipbuilding programs and to repeal Sec. 126 of Public Law 
     108-136.
       The conferees included a general provision (Section 8105) 
     which amends language, as

[[Page 16712]]

     proposed by the House, which reduces $197,500,000 from other 
     procurement and research, development, test and evaluation 
     accounts for cost growth in information technology 
     development and modernization.
       The conferees included a general provision (Section 8106) 
     which amends language, as proposed by the House and Senate, 
     to ensure that written notification is provided prior to 
     initiation of new start programs.
       The conferees included a general provision (Section 8109) 
     which amends language, as proposed by the House and Senate, 
     concerning the Non Line of Sight Cannon and Resupply Vehicle 
     (NLOS-C), and Stryker Brigade Combat Teams. Language revises 
     the fielding date for additional Stryker Brigade Combat 
     Teams.
       The conferees included a general provision (Section 8113) 
     which amends language, as proposed by the House and Senate, 
     which provides for grants to various organizations to include 
     $5,000,000 to the Intrepid Sea-Air-Space Foundation; 
     $1,875,000 to the Presidio Trust only for renovations of the 
     parade field; $1,000,000 to the Fort Ticonderoga Association; 
     $8,500,000 for the Military Aviation Museum of the Pacific; 
     $10,000,000 to the Wings of Liberty Military Museum at Fort 
     Campbell; $2,550,000 to the United Services Organization; 
     $5,000,000 to the Galena IDEA Distance Learning Program; 
     $1,500,000 to the Wing Luke Asian Museum; $8,000,000 to the 
     Center for Applied Science and Engineering (Jordan Valley 
     Innovation Park, Springfield, Missouri); $1,000,000 to the 
     Women in Military Service for America Memorial Foundation; 
     $2,000,000 to the American Red Cross Greater Alleghenies 
     Blood Services Center; $4,000,000 to the Clarksville-
     Montgomery County School System, Tennessee; and $1,000,000 to 
     the National Museum of Cavalry and Armor at Fort Knox.
       The conferees included a general provision (Section 8118) 
     which amends language, as proposed by the Senate, by making 
     permanent language pertaining to section 2533a(f) of title 10 
     for procurement of any fish, shellfish, or seafood product.
       The conferees included a general provision (Section 8122) 
     which amends language as proposed by the House and Senate, 
     reducing amounts available in titles II, III, and IV by 
     $711,000,000 for savings from assumed management 
     improvements.
       The conferees included a general provision (Section 8123) 
     which amends language as proposed by the House and Senate, 
     reducing the amount available in ``Operation and Maintenance, 
     Air Force'', by $967,200,000 for excess Transportation 
     Working Capital Fund cash and directing that not later than 
     270 days after enactment of this Act, the same amount be 
     transferred from the Transportation Working Capital Fund to 
     ``Operation and Maintenance, Air Force''.
       The conferees included a general provision (Section 8125) 
     which amends language as proposed by the House, to provide 
     $3,900,000 from funds available in ``Operation and 
     Maintenance, Marine Corps'', for widening, and construction 
     of a pedestrian path, for Adobe Road.
       The conferees included a general provision (Section 8126) 
     which amends language, as proposed by the House, making 
     $2,500,000 available for the MCAGCC Health Demonstration 
     Program.
       The conferees included a general provision (Section 8130) 
     which amends language, as proposed by the House, which 
     reduces amounts available in title II of this Act by 
     $50,000,000 for offsetting of payments to contractors for the 
     collection of unpaid taxes.
       The conferees included a general provision (Section 8131) 
     which amends language, as proposed by the House, which 
     reduces funds available in title IV of this Act by revising 
     the amount of the reduction.
       The conferees included a general provision (Section 8132) 
     which amends language, as proposed by the House, to establish 
     the ``Tanker Replacement Transfer Fund'', and appropriates 
     $100,000,000 to said fund.
       The conferees included a general provision (Section 8133) 
     which amends language, as proposed by the House, which 
     prohibits the amending or cancellation of current Department 
     of Defense policy for ``Personal Commercial Solicitation on 
     DoD Installations'', until 90 days after completion of a 
     report on insurance premium allotment processing.
       The conferees included a general provision (Section 8134) 
     which amends language, as proposed by the House with respect 
     to the due date of a report on the dud rate of cluster 
     munitions.
       The conferees included a general provision (Section 8135) 
     which amends language, as proposed by the Senate, which 
     provides from within funds available in ``Operation and 
     Maintenance, Navy'', $2,600,000 for drainage and flood 
     control systems in the vicinity of the Naval Magazine of 
     Lualualei.
       The conferees included a general provision (Section 8136) 
     which amends language, as proposed by the Senate, to provide 
     $2,100,000 from within funds available in ``Operation and 
     Maintenance, Navy'', for a grant to the Chicago Public 
     Schools for establishment of a Naval Military Academy High 
     School.
       The conferees included a general provision (Section 8140) 
     which amends language, as proposed by the Senate, which 
     reduces funds available in operation and maintenance accounts 
     by $768,100,000 for excessive unobligated balances.
       The conferees included a general provision (Section 8141) 
     which amends language, as proposed by the Senate, to reduce 
     the amount of funds available in title 11 by $100,000,000 for 
     excessive cost growth in the travel and transportation of 
     persons.
       The conferees included a new general provision (Section 
     142) concerning a rescission of funds for unobligated 
     balances. The rescissions agreed to are: 2002 Appropriations:

Aircraft Procurement, Navy: Unobligated balances............$50,000,000
Aircraft Procurement, Air Force: Unobligated balances........50,000,000

            TITLE IX--ADDITIONAL WAR-RELATED APPROPRIATIONS

                    Department of Defense--Military

       The following table provides details of the supplemental 
     appropriations in this title.

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[[Page 16714]]



[[Page 16715]]



[[Page 16716]]

      

[[Page 16717]]

    Contracts for Security, Translation, and Interrogation Services

       The conferees direct the Secretary of Defense to provide to 
     the congressional defense committees, not later than four 
     months after the date of enactment of this Act, a list of all 
     contracts entered into by the Department of Defense for the 
     provision of security, translation and interrogation services 
     in Iraq, Afghanistan, or Guantanamo Bay, and the amount of 
     each such contract.

                            Train and Equip

       The conferees have provided an additional $500,000,000 to 
     train, equip, and provide related assistance to the New Iraqi 
     Army and the Afghan National Army. The conferees have 
     provided this funding level with the understanding it will be 
     sufficient to carry the program through all of fiscal year 
     2005.

                 Commander's Emergency Response Program

       The conferees have provided an additional $300,000,000 to 
     continue the Commander's Emergency Response Program (CERP) 
     for Iraq and Afghanistan. The conferees believe CERP has been 
     one of the most successful humanitarian assistance programs 
     in Iraq and Afghanistan. The conferees want to ensure that 
     these funds are directed to such efforts and that funding for 
     administrative functions are minimized. In addition, the 
     conferees have received only two reports from the Department 
     on the use of the CERP. The conferees concur with the Senate 
     Report 108-284 regarding the timeliness and detail of 
     reporting requirements.

                    Navy Aircraft Depot Maintenance

       The conferees agree to provide $66,000,000 for Navy 
     aircraft depot maintenance. From the funds made available for 
     this purpose, the conferees urge the Navy to give priority 
     consideration for critical and emergent P-3C and EP-3 
     sustainment including phase depot maintenance, Enhanced 
     Special Structural Inspections (ESSI), and inventory 
     sustainment initiatives, as identified in the Chief of Naval 
     Operations' fiscal year 2005 unfunded priority list 
     submission to the congressional defense committees.

                           Iraq Freedom Fund

       The conference agreement includes $3,800,000,000 for the 
     Iraq Freedom Fund. Of this amount, $1,800,000,000 is only for 
     classified activities, and is described further in a 
     classified annex to this report. Additionally, the conferees 
     direct that up to $100,000,000 shall be available for the 
     Department of Homeland Security, ``United States Coast Guard, 
     Operating Expenses''.

                              Procurement

       The following table provides details of the recommendation 
     for the procurement accounts:

[[Page 16718]]

     
     
      

[[Page 16719]]

               Rapid Response Force Protection Initiative

       The conferees agree with the direction expressed in the 
     Senate-passed version of the fiscal year 2005 DoD 
     Appropriations bill on the need to provide improved force 
     protection for deployed forces. Further, the conferees agree 
     with the Senate that the Army must be given the greatest 
     flexibility possible with regard to force protection 
     responses. As stated in the Senate report, these options may 
     include armor bolt-on kits for M113A2/3 armored personnel 
     carriers, other bolt-on armor kits, applied uparmoring 
     system, armored cabs, or armored security vehicles (ASV). 
     Accordingly, the conferees provide $100,000,000 for this 
     effort. The Secretary of the Army shall provide a report to 
     the congressional defense committees detailing all 
     expenditures made using these funds not later than January 5, 
     2005.

                     Revolving and Management Funds


                     defense working capital funds

       The conferees recommend an appropriation of $1,478,000,000 
     for the Defense Working Capital Funds instead of 
     $1,250,000,000 as proposed by the House and $740,000,000 as 
     earmarked in the Iraq Freedom Fund by the Senate.

                  Other Department of Defense Programs


                         defense health program

       The conferees provide $683,000,000 for the Defense Health 
     Program. These funds will cover additional costs incurred by 
     the military medical system, including costs associated with 
     improving medical readiness for Ready Reserve members, and 
     enhanced TRICARE benefits for members of the Reserve 
     Component and their families. The conferees believe this will 
     be sufficient to cover increased Defense Health Program costs 
     for at least four months.

                     GENERAL PROVISIONS--THIS TITLE

       The conferees agree to retain section 9001 as proposed by 
     the House, which provides that funds in this title are 
     available for obligation upon enactment of this Act. The 
     Senate proposed similar language.
       The conferees agree to retain section 9002 as proposed by 
     the House which provides that funds made available in this 
     title are in addition to amounts provided elsewhere in this 
     Act.
       The conferees agree to retain and amend section 9003 as 
     proposed by the House, which provides for transfer between 
     appropriations of up to $1,500,000,000 of funds made 
     available in this title, and which amends Section 8005 of the 
     Department of Defense Appropriations Act, 2004 by striking 
     $2,100,000,000 and inserting $2,800,000,000, and providing 
     that transfers among military personnel appropriations shall 
     not be taken into account for purposes of the limitation 
     under this section. Additionally, the provision repeals, upon 
     enactment of this Act, Section 168(a) of division H of the 
     Consolidated Appropriations Act, 2004 (Public Law 108-199). 
     The Senate did not address this matter.
       The conferees agree to retain section 9004 as proposed by 
     the House, which provides that funds appropriated in title IX 
     of this Act for intelligence activities are deemed to be 
     authorized for purposes of section 504 of the National 
     Security Act of 1947. The Senate addressed this in title VIII 
     of the Senate-passed bill.
       The conferees agree to retain and amend section 9005 as 
     proposed by the House and the Senate, which prohibits the use 
     of funds provided in title IX to finance programs or 
     activities denied by Congress for fiscal years 2004 or 2005 
     and requires written notification prior to initiating new 
     start programs.
       The conferees agree to delete language as proposed by the 
     House, which would have continued authorization for certain 
     travel and clothing allowances during fiscal year 2005. The 
     Senate did not address this matter.
       The conferees agree to delete language as proposed by the 
     House, which would have continued through September 30, 2005, 
     authorization for certain military pay and allowances. The 
     Senate did not address this matter.
       The conferees agree to retain and amend section 9006 as 
     proposed by the House, which provides for support to military 
     and security forces in Iraq and Afghanistan and provides 
     $500,000,000 from funds available for operation and 
     maintenance in this title to train and equip the New Iraqi 
     Army and the Afghan National Army, and directs certain 
     reports. The Senate included a similar provision.
       The conferees agree to retain and amend section 9007 as 
     proposed by the House and the Senate, which provides that 
     from funds made available in this title, $300,000,000 may be 
     used to fund the Commander's Emergency Response Program.
       The conferees agree to retain section 9008 as proposed by 
     the Senate which provides for an increase in drawdown 
     authority provided under the Afghan Freedom Support Act of 
     2002. The House included a similar provision.
       The conferees agree to retain section 9009 as proposed by 
     the Senate which provides that funds available for operation 
     and maintenance for the current fiscal year may be used for 
     support to coalition forces in Iraq and Afghanistan, and 
     directs quarterly reports. The House included similar 
     language.
       The conferees agree to retain section 9010 as proposed by 
     the House which requires periodic reports on military 
     operations in Iraq and Afghanistan; amounts expended; 
     military readiness, recruitment and retention; and other 
     subjects. The Senate did not address this matter.
       The conferees agree to retain section 9011 as proposed by 
     the House which reaffirms that torture of prisoners of war 
     and detainees is illegal and does not reflect the policies of 
     the United States. The Senate did not address this matter.
       The conferees agree to retain and amend section 9012 as 
     proposed by the House which directs the President to provide 
     a report on estimated costs, from fiscal year 2006 to 2011, 
     of operations in and around Iraq and Afghanistan. The Senate 
     did not address this matter.
       The conferees agree to delete language as proposed by the 
     House pertaining to the debt ceiling. The Senate did not 
     address this matter.
       The conferees agree to delete language as proposed by the 
     House which would have directed the Secretary of Defense to 
     provide a list of contracts entered into by the Department of 
     Defense for security, translation, and interrogation services 
     in Iraq, Afghanistan, or Guantanamo Bay, and the amount of 
     each contract. The Senate did not address this matter.
       The conferees agree to retain section 9013 as proposed by 
     the House which provides that none of the funds made 
     available in this title may be used to fund any contract in 
     contravention of section 8(d)(6) of the Small Business Act. 
     The Senate did not address this matter.
       The conferees agree to include a new provision, section 
     9014, which provides for the presentation of promotional 
     materials to members of the active and reserve component who 
     participate in Operation Enduring Freedom or Operation Iraqi 
     Freedom.
       The conferees agree to include a new provision, section 
     9015, which provides that for the purposes of Section 
     402(a)(2) of S. Con. Res. 95 (108th Congress), as made 
     applicable to the House of Representatives by H. Res. 649 
     (108th Congress), all funds provided in this title, and those 
     made available by transfer or pursuant to authority in 
     section 9003 of the conference report, are directly in 
     support of national security and U.S. forces in the field, 
     are sudden, meet an urgent and compelling need, are 
     unpredictable, and are not permanent in nature.

                                TITLE X

                             OTHER MATTERS

                               CHAPTER 1

                          Department of State


                   Administration of Foreign Affairs

                    Diplomatic and Consular programs

       The conference agreement includes $665,300,000 for 
     necessary expenses for the operations of the United States 
     Mission in Iraq as proposed in the House bill, including 
     $240,000,000 for logistical support, $18,800,000 for the 
     costs of worldwide OpenNet and classified connectivity 
     infrastructure, $70,000,000 for the State Department 
     operations in Iraq, and $336,500,000 for the security-related 
     costs, including equipment, armored vehicles, protective 
     details and contract support. The conferees direct the 
     Department, not later than 60 days after the date of 
     enactment of this Act, to provide a report to the Committees 
     on Appropriations describing how, within these categories, 
     the Department allocated the funds provided under this 
     heading. The report shall also describe how the Department 
     intends to allocate any remaining balances.


            Embassy Security, Construction, and Maintenance

       The conference agreement includes $20,000,000 for necessary 
     expenses of securing interim United States Mission facilities 
     in Iraq, as proposed in the House bill.

                    GENERAL PROVISIONS, THIS CHAPTER

       Sec. 11001. The conference agreement includes language, as 
     proposed in the Senate bill, regarding the Manufacturing 
     Extension Partnership program.
       Sec. 11002. The conference agreement includes language, 
     similar to language proposed in the Senate bill, providing 
     $50,000,000 to reimburse State and local law enforcement 
     agencies for security costs associated with the 2004 
     Presidential Candidate Nominating Conventions in New York, NY 
     and Boston, MA.
       Sec. 11003. The conference report includes new language 
     providing $26,000,000 to the Federal Judiciary for 
     unanticipated costs related to defender services.
       Sec. 11004. The conference agreement includes language, as 
     proposed in the House bill, regarding certain transfer, 
     reprogramming, and other authorities applicable to amounts 
     provided in this title for the Department of State.
       For purposes of section 402(a)(2) of S. Con. Res. 95 (108th 
     Congress), as made applicable to the House of Representatives 
     by H. Res. 649 (108th Congress) and applicable to the Senate 
     by section 14007 of this Act, funds provided in this chapter 
     are provided in response to situations which pose direct 
     threats to life and property, are sudden, are urgent and 
     compelling needs, are unpredictable, and are not permanent in 
     nature.

[[Page 16720]]



                               CHAPTER 2

                     Bilateral Economic Assistance

                  Funds Appropriated to the President

           United States Agency for International Development

              International Disaster and Famine Assistance

       The conference agreement appropriates $70,000,000 for 
     necessary expenses to respond to the humanitarian crisis in 
     the Darfur region of Sudan and in Chad, as proposed by the 
     House and the Senate. Language is included elsewhere in this 
     title that designates the funding as an emergency 
     requirement. The funds are available until expended, and 
     become available for obligation upon enactment into law of 
     this Act.
       For purposes of section 402(a)(2) of S. Con. Res. 95 (108th 
     Congress), as made applicable to the House of Representatives 
     by H. Res. 649 (108th Congress) and applicable to the Senate 
     by section 14007 of this Act, funds provided under this 
     heading are provided in response to a situation which poses a 
     direct threat to life and property, is sudden, is an urgent 
     and compelling need, is unpredictable, and is not permanent 
     in nature.

                          Department of State


                    migration and refugee assistance

       The conference agreement appropriates $25,000,000 for 
     necessary expenses to respond to the humanitarian crisis in 
     the Darfur region of Sudan and in Chad, as proposed by the 
     House and the Senate. Language is included elsewhere in this 
     title that designates the funding as an emergency 
     requirement. The funds are available until expended, and 
     become available for obligation upon enactment into law of 
     this Act.
       For purposes of section 402(a)(2) of S. Con. Res. 95 (108th 
     Congress), as made applicable to the House of Representatives 
     by H. Res. 649 (108th Congress) and applicable to the Senate 
     by section 14007 of this Act, funds provided under this 
     heading are provided in response to a situation which poses a 
     direct threat to life and property, is sudden, is an urgent 
     and compelling need, is unpredictable, and is not permanent 
     in nature.

                    GENERAL PROVISIONS, THIS CHAPTER

       Sec. 12001. The conference agreement includes language, as 
     proposed in the Senate bill, regarding provision of surplus 
     military equipment to Israel.
       Sec. 12002. The conference agreement includes language, as 
     proposed in the Senate bill, regarding Foreign Assistance Act 
     provisions.

                               CHAPTER 3

 Supplemental, Appropriations for Fiscal Year 2004 for Urgent Wildland 
                      Fire Suppression Activities

       This chapter provides urgently needed supplemental funds in 
     the amount of $500,000,000 for the fiscal year 2004 wildfire 
     suppression needs of the Department of the Interior and the 
     Forest Service, and provides that cost containment measures 
     be implemented. This funding includes $100,000,000 for the 
     Department of the Interior, through the Bureau of Land 
     Management wildland fire management account and $400,000,000 
     for the Forest Service wildland fire management account.

                       Department of the Interior

                       Bureau of Land Management


                        Wildland Fire Management

       The managers have included an additional $100,000,000 for 
     ``Wildland Fire Management'', in fiscal year 2004.

                       Department of Agriculture

                             Forest Service


                        Wildland Fire Management

       The managers have included an additional amount of 
     $400,000,000 for ``Wildland Fire Management'', in fiscal year 
     2004.

                               CHAPTER 4

                     GENERAL PROVISIONS--THIS TITLE

       Sec. 14001. Appropriations provided in this title are 
     available for obligation until September 30, 2005, unless 
     otherwise so provided in this title.
       Sec. 14002. Funds in this title are available for 
     obligation and authorities in this title shall apply upon 
     enactment of this Act.
       Sec. 14003. The conference agreement includes language, 
     which amends a Senate provision, regarding amendments to 
     Public Law 108-199 related to the distribution of Federal-Aid 
     Highways funding for fiscal year 2004.
       Sec. 14004. The conference agreement includes language, 
     which amends a Senate provision, to include a technical 
     correction relating to the name of a project grantee funded 
     under the heading ``Institute of Museum and Library 
     Services'' in title IV of the Departments of Labor, Health 
     and Human Services, and Education and Related Agencies 
     Appropriations Act, fiscal year 2004.
       Sec. 14005. The conference agreement includes new language 
     that extends the availability of $10,600,000 for the District 
     of Columbia Public Schools until September 30, 2005.
       Sec. 14006. The conference agreement includes a new 
     technical clarification to 8 U.S.C. 11184 (8)(1)(B).
       Sec. 14007. The conferees agreed to a new provision, 
     applicable to the Senate, setting for fiscal year 2005 a 
     discretionary spending level in the Senate of 
     $821,419,000,000, and permitting further adjustments as 
     allowed under the terms of the conference report on S. Con. 
     Res. 95, the concurrent resolution setting forth the 
     congressional budget for the United States Government for 
     fiscal year 2005, as contained in House Report 108-498, filed 
     in the House of Representatives on May 19, 2004. This 
     provision does not trigger the application of House Rule 
     XXVII.
       Sec. 14008. The conference agreement includes a new 
     provision which provides that appropriations in chapters 1 
     and 2 of this title are each designated as emergency 
     appropriations pursuant to section 402 of S. Con. Res. 95 
     (108th Congress), as made applicable to the House of 
     Representatives by H. Res. 649 (108th Congress) and 
     applicable to the Senate by section 14007 of this Act.

                   Conference Total--With Comparisons

       The total new budget (obligational) authority for the 
     fiscal year 2005 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 2004 amount, the 2005 
     budget estimates, and the House and Senate bills for 2005 
     follow:

                       [In thousands of dollars]

New budget (obligational) authority, fiscal year 2004......$365,772,453
Budget estimates of new (obligational) authority, fiscal yea392,824,305
House bill, fiscal year 2005................................391,170,100
Senate bill, fiscal year 2005...............................384,012,400
Conference agreement, fiscal year 2005......................391,170,312
Conference agreement compared with:....................................
  New budget (obligational) authority, fiscal year 2004.....+25,397,859
  Budget estimates of new (obligational) authority, fiscal ye-1,653,993
  House bill, fiscal year 2005.....................................+212
  Senate bill, fiscal year 2005..............................+7,157,912

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

     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete Domenici,
     Kit Bond,
     Mitch McConnell,
     Richard C. Shelby,
     Judd Gregg,
     Kay Bailey Hutchison,
     Conrad Burns,
     Daniel K. Inouye,
     Ernest F. Hollings,
       (except for deeming section),
     Robert C. Byrd,
       (except for the section deeming FY2005 discretionary 
     limits),
     Patrick J. Leahy,
       (except for deeming section),
     Tom Harkin,
       (except for deeming section),
     Byron L. Dorgan,
       (except for deeming section),
     Richard J. Durbin,
       (except for the deeming FY2005 discretionary limits),
     Harry Reid,
       (except for deeming section),
     Dianne Feinstein,
       (except for deeming section),
     Managers on the Part of the Senate.

                          ____________________