[House Report 104-261]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-261
_______________________________________________________________________


 
MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR 
           ENDING SEPTEMBER 30, 1996, AND FOR OTHER PURPOSES

                                _______


               September 25, 1995.--Ordered to be printed

_______________________________________________________________________


 Mr. Young of Florida, from the committee of conference, submitted the 
                               following

                           CONFERENCE REPORT

                        [To accompany H.R. 2126]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2126) ``making appropriations for the Department of Defense for 
the fiscal year ending September 30, 1996, 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, 1996, 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, interest on 
deposits, gratuities, permanent change of station travel 
(including all expenses thereof for organizational movements), 
and expenses of temporary duty travel between permanent duty 
stations, for members of the Army on active duty (except 
members of reserve components provided for elsewhere), cadets, 
and aviation cadets; and for payments pursuant to section 156 
of Public Law 97-377, as amended (42 U.S.C. 402 note), to 
section 229(b) of the Social Security Act (42 U.S.C. 429(b)), 
and to the Department of Defense Military Retirement Fund; 
$19,809,187,000.

                        Military Personnel, Navy

      For pay, allowances, individual clothing, interest on 
deposits, gratuities, permanent change of station travel 
(including all expenses thereof for organizational movements), 
and expenses of temporary duty travel between permanent duty 
stations, for members of the Navy on active duty (except 
members of the Reserve provided for elsewhere), midshipmen, and 
aviation cadets; and for payments pursuant to section 156 of 
Public Law 97-377, as amended (42 U.S.C. 402 note), to section 
229(b) of the Social Security Act (42 U.S.C. 429(b)), and to 
the Department of Defense Military Retirement Fund; 
$17,008,563,000.

                    Military Personnel, Marine Corps

      For pay, allowances, individual clothing, 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), to section 229(b) of the Social 
Security Act (42 U.S.C. 429(b)), and to the Department of 
Defense Military Retirement Fund; $5,885,740,000.

                     Military Personnel, Air Force

      For pay, allowances, individual clothing, interest on 
deposits, gratuities, permanent change of station travel 
(including all expenses thereof for organizational movements), 
and expenses of temporary duty travel between permanent duty 
stations, for members of the Air Force on active duty (except 
members of reserve components provided for elsewhere, cadets, 
and aviation cadets; and for payments pursuant to section 156 
of Public Law 97-377, as amended (42 U.S.C. 402 note), to 
section 229(b) of the Social Security Act (42 U.S.C. 429(b)), 
and to the Department of Defense Military Retirement Fund; 
$17,207,743,000.

                        Reserve Personnel, Army

      For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Army Reserve 
on active duty under sections 10211, 10302, and 3038 of title 
10, United States Code, or while serving on active duty under 
section 12301(d) of title 10, United States Code, in connection 
with performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing reserve training, or 
while performing drills or equivalent duty or other duty, and 
for members of the Reserve Officers' Training Corps, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $2,122,466,000.

                        Reserve Personnel, Navy

      For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Navy Reserve 
on active duty under section 10211 of title 10, United States 
Code, or while serving on active duty under section 12301(d) of 
title 10, United States Code, in connection with performing 
duty specified in section 12310(a) of title 10, United States 
Code, or while undergoing reserve training, or while performing 
drills or equivalent duty, and for members of the Reserve 
Officers' Training Corps, and expenses authorized by section 
16131 of title 10, United States Code; and for payments to the 
Department of Defense Military Retirement Fund; $1,355,523,000.

                    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; 
$378,151,000.

                      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; $784,586,000.

                     National Guard Personnel, Army

      For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Army National 
Guard while on duty under section 10211, 10302, or 12402 of 
title 10 or section 708 of title 32, United States Code, or 
while serving on duty under section 12301(d) of title 10 or 
section 502(f) of title 32, United States Code, in connection 
with performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $3,242,422,000.

                  National Guard Personnel, Air Force

      For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Air National 
Guard on duty under section 10211, 10305, or 12402 of title 10 
or section 708 of title 32, United States Code, or while 
serving on duty under section 12301(d) of title 10 or section 
502(f) of title 32, United States Code, in connection with 
performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $1,259,627,000.

                  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 $14,437,000 can be used for emergencies 
and extraordinary expenses, to be expended on the approval or 
authority of the Secretary of the Army, and payments may be 
made on his certificate of necessity for confidential military 
purposes; $18,321,965,000 and, in addition, $50,000,000 shall 
be derived by transfer from the National Defense Stockpile 
Transaction Fund.

                    Operation and Maintenance, Navy


                     (including transfer of funds)


      For expenses, not otherwise provided for, necessary for 
the operation and maintenance of the Navy and the Marine Corps, 
as authorized by law; and not to exceed $4,151,000 can be used 
for emergencies and extraordinary expenses, to be expended on 
the approval or authority of the Secretary of the Navy, and 
payments may be made on his certificate of necessity for 
confidential military purposes; $21,279,425,000 and, in 
addition, $50,000,000 shall be derived by transfer from the 
National Defense Stockpile Transaction Fund: Provided, That of 
the funds appropriated under this heading, $595,100,000 shall 
be available only for the liquidation of prior year accumulated 
operating losses of the Department of the Navy activities 
included in the Defense Business Operations Fund.

                Operation and Maintenance, Marine Corps

      For expenses, not otherwise provided for, necessary for 
the operation and maintenance of the Marine Corps, as 
authorized by law; $2,392,522,000.

                  Operation and Maintenance, Air Force


                     (including transfer of funds)


      For expenses, not otherwise provided for, necessary for 
the operation and maintenance of the Air Force, as authorized 
by law; and not to exceed $8,362,000 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; $18,561,267,000 and, in 
addition, $50,000,000 shall be derived by transfer from the 
National Defense Stockpile Transaction Fund: Provided, That the 
Secretary of the Air Force may acquire all right, title, and 
interest of any party in and to parcels of real property, 
including improvements thereon, consisting of not more than 92 
acres, located near King Salmon Air Force Station for the 
purpose of conducting a response action in accordance with the 
Comprehensive Environmental Response, Compensation, and 
Liability Act (42 U.S.C. 9601-9675) and the Air Force 
Installation Restoration Program.

                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; $10,388,595,000, of which not to exceed 
$25,000,000 may be available for the CINC initiative fund 
account; and of which not to exceed $28,588,000 can be used for 
emergencies and extraordinary expenses, to be expended on the 
approval or authority of the Secretary of Defense, and payments 
may be made on his certificate of necessity for confidential 
military purposes: Provided, That of the funds appropriated 
under this heading, $20,000,000 shall be made available only 
for use in federally owned education facilities located on 
military installations for the purpose of transferring title of 
such facilities to the local education agency: Provided 
further, That of the funds available under this heading, 
$300,000,000 shall be available only for transfer to the Coast 
Guard in support of the national security functions of the 
Coast Guard, while operating in conjunction with and in support 
of the Navy: Provided further, That funds transferred pursuant 
to this section are in addition to 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; $1,119,191,000.

                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; $859,542,000.

            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; $100,283,000.

              Operation and Maintenance, Air Force Reserve

      For expenses, not otherwise provided for, necessary for 
the operation and maintenance, including training, 
organization, and administration, of the Air Force Reserve; 
repair of facilities and equipment; hire of passenger motor 
vehicles; travel and transportation; care of the dead; 
recruiting; procurement of services, supplies, and equipment; 
and communications; $1,519,287,000.

             Operation and Maintenance, Army National Guard

      For expenses of training, organizing, and administering 
the Army National Guard, including medical and hospital 
treatment and related expenses in non-Federal hospitals; 
maintenance, operation, and repairs to structures and 
facilities; hire of passenger motor vehicles; personnel 
services in the National Guard Bureau; travel expenses (other 
than mileage), as authorized by law for Army personnel on 
active duty, for Army National Guard division, regimental, and 
battalion commanders while inspecting units in compliance with 
National Guard Bureau regulations when specifically authorized 
by the Chief, National Guard Bureau; supplying and equipping 
the Army National Guard as authorized by law; and expenses of 
repair, modification, maintenance, and issue of supplies and 
equipment (including aircraft); $2,440,808,000.

             Operation and Maintenance, Air National Guard

      For operation and maintenance of the Air National Guard, 
including medical and hospital treatment and related expenses 
in non-Federal hospitals; maintenance, operation, repair, and 
other necessary expenses of facilities for the training and 
administration of the Air National Guard, including repair of 
facilities, maintenance, operation, and modification of 
aircraft; transportation of things; hire of passenger motor 
vehicles; supplies, materials, and equipment, as authorized by 
law for the Air National Guard; and expenses incident to the 
maintenance and use of supplies, materials, and equipment, 
including such as may be furnished from stocks under the 
control of agencies of the Department of Defense; travel 
expenses (other than mileage) on the same basis as authorized 
by law for Air National Guard personnel on active Federal duty, 
for Air National Guard commanders while inspecting units in 
compliance with National Guard Bureau regulations when 
specifically authorized by the Chief, National Guard Bureau; 
$2,776,121,000.

          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; $6,521,000, of which not 
to exceed $2,500 can be used for official representation 
purposes.

                   Environmental Restoration, Defense


                     (including transfer of funds)


      For the Department of Defense; $1,422,200,000, 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 (including 
programs and operations 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 Defense, to be merged with and to be 
available for the same purposes and for the same period as the 
appropriations of funds to which transferred, as follows:
      Operation and Maintenance, Army, $631,900,000;
      Operation and Maintenance, Navy, $365,300,000;
      Operation and Maintenance, Air Force, $368,000,000; and
      Operation and Maintenance, Defense-wide, $57,000,000: 
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.

                            Summer Olympics

      For logistical support and personnel services (other than 
pay and non-travel-related allowances of members of the Armed 
Forces of the United States, except for members of the reserve 
components thereof called or ordered to active duty to provide 
support for the 1996 Games of the XXVI Olympiad to be held in 
Atlanta, Georgia) provided by any component of the Department 
of Defense to the 1996 Games of the XXVI Olympiad; $15,000,000: 
Provided, That funds appropriated under this heading shall 
remain available for obligation until September 30, 1997.

             Overseas Humanitarian, Disaster, and Civic Aid

      For expenses relating to the Overseas Humanitarian, 
Disaster, and Civic Aid programs of the Department of Defense 
(consisting of the programs provided under sections 401, 402, 
404, 2547, and 2551 of title 10, United States Code); 
$50,000,000: Provided, That of the funds available under this 
heading, $20,000,000 shall be available for training and 
activities related to the clearing of landmines for 
humanitarian purposes.

                  Former Soviet Union Threat Reduction

      For assistance to the republics of the former Soviet 
Union, including assistance provided by contract or by grants, 
for facilitating the elimination and the safe and secure 
transportation and storage of nuclear, chemical and other 
weapons; for establishing programs to prevent the proliferation 
of weapons, weapons components, and weapon-related technology 
and expertise; for programs relating to the training and 
support of defense and military personnel for demilitarization 
and protection of weapons, weapons components and weapons 
technology and expertise; $300,000,000 to remain available 
until expended.

                         TITLE III--PROCUREMENT

                       Aircraft Procurement, Army

      For construction, procurement, production, modification, 
and modernization of aircraft, equipment, including ordnance, 
ground handling equipment, spare parts, and accessories 
therefor; specialized equipment and training devices; expansion 
of public and private plants, including the land necessary 
therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes; $1,558,805,000, to remain 
available for obligation until September 30, 1998: Provided, 
That not less than nine UH-60L helicopters shall be made 
available to the Army National Guard for the medical evacuation 
mission.

                       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; $865,555,000, to remain 
available for obligation until September 30, 1998.

        Procurement of Weapons and Tracked Combat Vehicles, Army

      For construction, procurement, production, and 
modification of weapons and tracked combat vehicles, equipment, 
including ordnance, spare parts, and accessories therefor; 
specialized equipment and training devices; expansion of public 
and private plants, including the land necessary therefor, for 
the foregoing purposes, and such lands and interests therein, 
may be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $1,652,745,000, to remain available for 
obligation until September 30, 1998.

                    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, 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; $1,110,685,000, to remain 
available for obligation until September 30, 1998.

                        Other Procurement, Army

      For construction, procurement, production, and 
modification of vehicles, including tactical, support, and 
nontracked combat vehicles; the purchase of not to exceed 41 
passenger motor vehicles for replacement only; 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 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; $2,769,443,000, 
to remain available for obligation until September 30, 1998.

                       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; $4,589,394,000, to remain available for 
obligation until September 30, 1998.

                       Weapons Procurement, Navy

      For construction, procurement, production, modification, 
and modernization of missiles, torpedoes, other weapons, and 
related support equipment including spare parts, and 
accessories therefor; expansion of public and private plants, 
including the land necessary therefor, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; $1,669,827,000, to remain 
available for obligation until September 30, 1998.

            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, 
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; $430,053,000, to remain available for 
obligation until September 30, 1998.

                   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:
      For continuation of the SSN-21 attack submarine program, 
$700,000,000;
      NSSN-1 (AP), $704,498,000;
      NSSN-2 (AP), $100,000,000;
      CVN Refuelings, $221,988,000;
      DDG-51 destroyer program, $2,169,257,000, for the 
purchase of two destroyers and advance procurement: Provided, 
That the Secretary of the Navy shall award a contract, if 
successfully negotiated, for two additional DDG-51 destroyers 
on October 1, 1996;
      LHD-1 amphibious assault ship program, $1,300,000,000;
      LPD-17 amphibious transport dock ship, $974,000,000;
      Fast patrol craft, $9,500,000;
      T-AGS-64 multi-purpose oceanographic survey ship, 
$16,000,000;
      LSD-52, $20,000,000;
      For craft, outfitting, post delivery conversions, and 
first destination transportation, $428,715,000; In all: 
$6,643,958,000, to remain available for obligation until 
September 30, 2000: Provided, That additional obligations may 
be incurred after September 30, 2000, for engineering services, 
tests, evaluations, and other such budgeted work that must be 
performed in the final state of ship construction: Provided 
further, That none of the funds herein provided 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 herein 
provided shall be used for the construction of any naval vessel 
in foreign shipyards.

                        Other Procurement, Navy

    For procurement, production, and modernization of support 
equipment and materials not otherwise provided for, Navy 
ordnance (except ordnance for new aircraft, new ships, and 
ships authorized for conversion); the purchase of not to exceed 
252 passenger motor vehicles for replacement only; 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; $2,503,581,000, to remain available for obligation 
until September 30, 1998.

                       Procurement, Marine Corps

      For expenses necessary for the procurement, manufacture, 
and modification of missiles, armament, military equipment, 
spare parts, and accessories therefor; plant equipment, 
appliances, and machine tools, and installation thereof in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; vehicles for the Marine 
Corps, including the purchase of not to exceed 194 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; $458,947,000, to 
remain available for obligation until September 30, 1998.

                    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; $7,367,983,000, to remain available for obligation 
until September 30, 1998.

                     Missile Procurement, Air Force

      For construction, procurement, and modification of 
missiles. spacecraft, rockets, and related equipment, including 
spare parts, and accessories therefor, ground handling 
equipment, and training devices; expansion of public and 
private plants, Government-owned equipment and installation 
thereof in such plants, erection of structures, and acquisition 
of land, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes including rents 
and transportation of things; $2,943,931,000, to remain 
available for obligation until September 30, 1998.

                  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, 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; $338,800,000, to remain 
available for obligation until September 30, 1998.

                      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 not to exceed 385 passenger motor vehicles 
for replacement only; the purchase of 1 vehicle required for 
physical security of personnel, notwithstanding price 
limitations applicable to passenger vehicles but not to exceed 
$260,000 per vehicle; and expansion of public and private 
plants, Government-owned equipment and installation thereof in 
such plants, erection of structures, and acquisition of land, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon, 
prior to approval of title; reserve plant and Government and 
contractor-owned equipment layaway; $6,284,230,000, to remain 
available for obligation until September 30, 1998.

                       Procurement, Defense-Wide

      For expenses of activities and agencies of the Department 
of Defense (other than the military departments) necessary for 
procurement, production, and modification of equipment, 
supplies, materials, and spare parts therefor, not otherwise 
provided for; the purchase of not to exceed 451 passenger motor 
vehicles, of which 447 shall be 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; 
$2,124,379,000, to remain available for obligation until 
September 30, 1998.

                  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; $777,000,000, to 
remain available for obligation until September 30, 1998: 
Provided, That the Chiefs of the Reserve and National Guard 
components shall, not later than November 1, 1995, individually 
submit to the congressional defense committees the 
modernization priority assessment for their respective Reserve 
or National Guard component.

          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

      For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, as authorized by law; $4,870,684,000, to remain 
available for obligation until September 30, 1997.

            Research, Development, Test and Evaluation, Navy

      For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, as authorized by law; $8,748,132,000, to remain 
available for obligation until September 30, 1997: Provided, 
That of the funds provided in Public Law 103-335, in title IV, 
under the heading ``Research, Development, Test and Evaluation, 
Navy'', $5,000,000 shall be made available as a grant only to 
the Marine and Environmental Research and Training Station 
(MERTS) for laboratory and other efforts associated with 
research, development, and other programs of major importance 
to the Department of Defense: Provided further, That funds 
appropriated in this paragraph which are available for the V-22 
may be used to meet unique requirements of the Special 
Operations Forces.

         Research, Development, Test and Evaluation, Air Force

      For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, as authorized by law; $13,126,567,000, to remain 
available for obligation until September 30, 1997: Provided, 
That of the funds made available in this paragraph, $25,000,000 
shall be only for development of reusable launch vehicle 
technologies: Provided further, That not less than $9,500,000 
of the funds appropriated in this paragraph shall be made 
available only for the Joint Seismic Program and the Global 
Seismographic Network.

        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, as authorized by law; $9,411,057,000, to remain 
available for obligation until September 30, 1997: Provided, 
That not less than $200,442,000 of the funds appropriated in 
this paragraph shall be made available only for the Sea-Based 
Wide Area Defense (Navy Upper-Tier) program: Provided further, 
That the funds made available under the second proviso under 
this heading in Public Law 103-335 (108 Stat. 2613) shall also 
be available to cover the reasonable costs of the 
administration of loan guarantees referred to in that proviso 
and shall be available to cover such costs of administration 
and the costs of such loan guarantees until September 30, 1998.

               Developmental Test and Evaluation, Defense

      For expenses, not otherwise provided for, of independent 
activities of the Director, Test and Evaluation in the 
direction and supervision of developmental test and evaluation, 
including performance and joint developmental testing and 
evaluation; and administrative expenses in connection 
therewith; $251,082,000, to remain available for obligation 
until September 30, 1997.

                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; 
$22,587,000 to remain available for obligation until September 
30, 1997.

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

                    Defense Business Operations Fund

      For the Defense Business Operations Fund; $878,700,000.

                     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); $1,024,220,000, 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 ship-board 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 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 the Secretary of the Navy may obligate not to exceed 
$110,000,000 from available appropriations to the Navy for the 
procurement of one additional MPS ship.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

      For expenses, not otherwise provided for, for medical and 
health care programs of the Department of Defense, as 
authorized by law; $10,226,358,000, of which $9,938,325,000 
shall be for Operation and maintenance, of which $288,033,000, 
to remain available for obligation until September 30, 1998, 
shall be for Procurement: Provided, That of the funds 
appropriated under this heading, $14,500,000 shall be made 
available for obtaining emergency communications services for 
members of the Armed Forces and their families from the 
American National Red Cross as authorized by law: Provided 
further, That the date for implementation of the nation-wide 
managed care military health services system shall be extended 
to September 30, 1997: Provided further, That of the funds 
provided under this heading, $3,400,000 is available only to 
permit private sector or non-federal physicians, who have used 
and will use the antibacterial treatment method based upon the 
excretion of dead decaying spherical bacteria, to work in 
conjunction with the Walter Reed Army Medical Center on a 
treatment protocol and related studies for Desert Storm 
Syndrome-affected veterans.

           Chemical Agents and Munitions Destruction, Defense

      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, $672,250,000, of which $353,850,000 shall be for 
Operation and maintenance, $265,000,000 shall be for 
Procurement to remain available until September 30, 1998, and 
$53,400,000 shall be for Research, development, test and 
evaluation to remain available until September 30, 1997.

         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; $688,432,000: Provided, That the funds appropriated 
by this paragraph shall be available for obligation for the 
same time period and for the same purpose as the appropriation 
to which transferred: Provided further, That the transfer 
authority provided in this paragraph is in addition to any 
transfer authority contained elsewhere in this Act.

                    Office of the Inspector General

      For expenses and activities of the Office of the 
Inspector General in carrying out the provisions of the 
Inspector General Act of 1978, as amended; $178,226,000, of 
which $177,226,000 shall be for Operation and maintenance, of 
which not to exceed $400,000 is available for emergencies and 
extraordinary expenses to be expended on the approval or 
authority of the Inspector General, and payments may be made on 
his certificate of necessity for confidential military 
purposes; and of which $1,000,000 to remain available until 
September 30, 1998, shall be for Procurement.

                      TITLE VII--RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

      For payment to the Central Intelligence Agency Retirement 
and Disability System Fund, to maintain proper funding level 
for continuing the operation of the Central Intelligence Agency 
Retirement and Disability System; $213,900,000.

                 National Security Education Trust Fund

      For the purposes of title VIII of Public Law 102-183, 
$7,500,000, to be derived from the National Security Education 
Trust Fund, to remain available until expended: Provided, That 
any individual accepting a scholarship or fellowship from this 
program agrees to be employed by the Department of Defense or 
in the Intelligence Community in accordance with federal 
employment standards.

               Intelligence Community Management Account

      For necessary expenses of the Intelligence Community 
Management Account; $90,683,000.

     Kaho'olawe Island Conveyance, Remediation, and Environmental 
                         Restoration Trust Fund

      For payment to the Kaho'olawe Island Conveyance, 
Remediation, and Environmental Restoration Trust Fund, as 
authorized by law, $25,000,000, 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 
increased authorized by law for civilian employees of the 
Department of Defense whose pay is computed under the 
provisions of section 5332 of title 5, United States Code, or 
at a rate in excess of the percentage increase provided by the 
appropriate host nation to its own employees, whichever is 
higher: Provided further, That this section shall not apply to 
Department of Defense foreign service national employees 
serving at United States diplomatic missions whose pay is set 
by the Department of State under the Foreign Service Act of 
1980: Provided further, That the limitations of this provision 
shall not apply to foreign national employees of the Department 
of Defense in the Republic of Turkey.
      Sec. 8003. No part of any appropriation contained in this 
Act shall remain available for obligation beyond the current 
fiscal year, unless expressly so provided herein.
      Sec. 8004. No more than 20 per centum of the 
appropriations in this Act which are limited for obligation 
during the current fiscal year shall be obligated during the 
last two months of the fiscal year: Provided, That this section 
shall not apply to obligations for support of active duty 
training of reserve components or summer camp training of the 
Reserve Officers' Training Corps.


                          (transfer of funds)


      Sec. 8005. Upon determination by the Secretary of Defense 
that such action is necessary in the national interest, he may, 
with the approval of the Office of Management and Budget, 
transfer not to exceed $2,400,000,000 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 unforseen military requirements, than 
those for which originally appropriated and in no case where 
the item for which funds are requested has been denied by 
Congress: Provided further, That the Secretary of Defense shall 
notify the Congress promptly of all transfers made pursuant to 
this authority or any other authority in this Act: Provided 
further, That no part of the funds in this Act shall be 
available to prepare or present a request to the Committees on 
Appropriations for reprogramming of funds, unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where 
the item for which reprogramming is requested has been denied 
by the Congress.


                          (transfer of funds)


      Sec. 8006. During the current fiscal year, cash balances 
in working capital funds of the Department of Defense 
established pursuant to section 2208 of title 10, United States 
Code, may be maintained in only such amounts as are necessary 
at any time for cash disbursements to be made from such funds: 
Provided, That transfers may be made between such funds and the 
``Foreign Currency Fluctuations, Defense'' and ``Operation and 
Maintenance'' appropriation accounts in such amounts as may be 
determined by the Secretary of Defense, with the approval of 
the Office of Management and Budget, except that such transfers 
may not be made unless the Secretary of Defense has notified 
the Congress of the proposed transfer. Except in amounts equal 
to the amounts appropriated to working capital funds in this 
Act, no obligations may be made against a working capital fund 
to procure or increase the value of war reserve material 
inventory, unless the Secretary of Defense has notified the 
Congress prior to any such obligation.
      Sec. 8007. 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: Provided further, That none of 
the funds available to the Department of Defense in this Act 
shall be used by the Secretary of a military department to 
purchase coal or coke from foreign nations for use at United 
States defense facilities in Europe when coal from the United 
States is available.
      Sec. 8008. 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. 8009. None of the funds contained in this Act 
available for the Civilian Health and Medical Program of the 
Uniformed Services shall be available for payments to 
physicians and other non-institutional health care providers in 
excess of the amounts allowed in fiscal year 1995 for similar 
services, except that: (a) for services for which the Secretary 
of Defense determines an increase is justified by economic 
circumstances, the allowable amounts may be increased in 
accordance with appropriate economic index data similar to that 
used pursuant to title XVIII of the Social Security Act; and 
(b) for services the Secretary determines are overpriced based 
on allowable payments under title XVIII of the Social Security 
Act, the allowable amounts shall be reduced by not more than 15 
percent (except that the reduction may be waived if the 
Secretary determines that it would impair adequate access to 
health care services for beneficiaries). The Secretary shall 
solicit public comment prior to promulgating regulations to 
implement this section. Such regulations shall include a 
limitation, similar to that used under title XVIII of the 
Social Security Act, on the extent to which a provider may bill 
a beneficiary an actual charge in excess of the allowable 
amount.
      Sec. 8010. None of the funds provided in this Act shall 
be available to initiate (1) a multiyear contract that employs 
economic order quantity procurement in excess of $20,000,000 in 
any one year of the contract or that includes an unfunded 
contingent liability in excess of $20,000,000, or (2) a 
contract for advance procurement leading to a multiyear 
contract that employs economic order quantity procurement in 
excess of $20,000,000 in any one year, unless the congressional 
defense committees have been notified at least thirty days in 
advance of the proposed contract award: Provided, That no part 
of any appropriation contained in this Act shall be available 
to initiate a multiyear contract for which the economic order 
quantity advance procurement is not funded at least to the 
limits of the Government's liability: Provided further, That no 
part of any appropriation contained in this Act shall be 
available to initiate multiyear procurement contracts for any 
systems or component thereof if the value of the multiyear 
contract would exceed $500,000,000 unless specifically provided 
in this Act: Provided further, That no multiyear procurement 
contract can be terminated without 10-day prior notification to 
the congressional defense committees: Provided further, That 
the execution of multiyear authority shall require the use of a 
present value analysis to determine lowest cost compared to an 
annual procurement.
      Funds appropriated in title III of this Act may be used 
for multiyear procurement contracts as follows:
      UH-60 Blackhawk helicopter;
      Apache Longbow helicopter; and
      M1A2 tank upgrade.
      Sec. 8011. Within the funds appropriated for the 
operation and maintenance of the Armed Forces, funds are hereby 
appropriated pursuant to section 401 of title 10, United States 
Code, for humanitarian and civic assistance costs under chapter 
20 of title 10, United States Code. Such funds may also be 
obligated for humanitarian and civic assistance costs 
incidental to authorized operations and pursuant to authority 
granted in section 401 of chapter 20 of title 10, United States 
Code, and these obligations shall be reported to Congress on 
September 30 of each year: Provided, That funds available for 
operation and maintenance shall be available for providing 
humanitarian and similar assistance by using Civic Action Teams 
in the Trust Territories of the Pacific Islands and freely 
associated states of Micronesia, pursuant to the Compact of 
Free Association as authorized by Public Law 99-239: Provided 
further, That upon a determination by the Secretary of the Army 
that such action is beneficial for graduate medical education 
programs conducted at Army medical facilities located in 
Hawaii, the Secretary of the Army may authorize the provision 
of medical services at such facilities and transportation to 
such facilities, on a nonreimbursable basis, for civilian 
patients from American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Marshall Islands, the Federated States of 
Micronesia, Palau, and Guam.
      Sec. 8012. (a) During fiscal year 1996, 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 1997 budget request for the 
Department of Defense as well as all justification material and 
other documentation supporting the fiscal year 1997 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 1997.
      (c) Nothing in this section shall be construed to apply 
to military (civilian) technicians.
      Sec. 8013. None of the funds provided in this Act shall 
be available either to return any IOWA Class Battleships to the 
Naval Register, or to retain the logistical support necessary 
for support of any IOWA Class Battleships in active service.
      Sec. 8014. Notwithstanding any other provision of law, 
none of the funds made available by this Act shall be used by 
the Department of Defense to exceed, outside the fifty United 
States, its territories, and the District of Columbia, 125,000 
civilian workyears: Provided, That workyears shall be applied 
as defined in the Federal Personnel Manual: Provided further, 
That workyears expended in dependent student hiring programs 
for disadvantaged youths shall not be included in this workyear 
limitation.
      Sec. 8015. 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. 8016. None of the funds appropriated for the 
Department of Defense during the current fiscal year and 
hereafter shall be obligated for the pay of any individual who 
is initially employed after the date of enactment of this Act 
as a technician in the administration and training of the Army 
Reserve and the maintenance and repair of supplies issued to 
the Army Reserve unless such individual is also a military 
member of the Army Reserve troop program unit that he or she is 
employed to support. Those technicians employed by the Army 
Reserve in areas other than Army Reserve troop program units 
need only be members of the Selected Reserve.
      Sec. 8017. Notwithstanding any other provision of law, 
during the current fiscal year and hereafter, the Secretaries 
of the Army and Air Force may authorize the retention in an 
active status until age sixty of any person who would otherwise 
be removed from an active status and who is employed as a 
National Guard or Reserve technician in a position in which 
active status in a reserve component of the Army or Air Force 
is required as a condition of that employment.
      Sec. 8018. (a) None of the funds appropriated by this Act 
shall be used to make contributions to the Department of 
Defense Education Benefits Fund pursuant to section 2006(g) of 
title 10, United States Code, representing the normal cost for 
future benefits under section 1415(c) of title 38, United 
States Code, for any member of the armed services who, on or 
after the date of enactment of this Act--
      (1) enlists in the armed services for a period of active 
duty of less than three years; or
      (2) receives an enlistment bonus under section 308a or 
308f of title 37, United States Code,

nor shall any amounts representing the normal cost of such 
future benefits be transferred from the Fund by the Secretary 
of the Treasury to the Secretary of Veterans Affairs pursuant 
to section 2006(d) of title 10, United States Code; nor shall 
the Secretary of Veterans Affairs pay such benefits to any such 
member: Provided, That, in the case of a member covered by 
clause (1), these limitations shall not apply to members in 
combat arms skills or to members who enlist in the armed 
services on or after July 1, 1989, under a program continued or 
established by the Secretary of Defense in fiscal year 1991 to 
test the cost-effective use of special recruiting incentives 
involving not more than nineteen noncombat arms skills approved 
in advance by the Secretary of Defense: Provided further, That 
this subsection applies only to active components of the Army.
      (b) None of the funds appropriated by this Act shall be 
available for the basic pay and allowances of any member of the 
Army participating as a full-time student and receiving 
benefits paid by the Secretary of Veterans Affairs from the 
Department of Defense Education Benefits Fund when time spent 
as a full-time student is credited toward completion of a 
service commitment: Provided, That this subsection shall not 
apply to those members who have reenlisted with this option 
prior to October 1, 1987: Provided further, That this 
subsection applies only to active components of the Army.
      Sec. 8019. Funds appropriated for the Department of 
Defense during the current fiscal year and hereafter shall be 
available for the payment of not more than 75 percent of the 
charges of a postsecondary educational institution for the 
tuition or expenses of an officer in the Ready Reserve of the 
Army National Guard or Army Reserve for education or training 
during his off-duty periods, except that no part of the charges 
may be paid unless the officer agrees to remain a member of the 
Ready Reserve for at least four years after completion of such 
training or education.
    Sec. 8020. None of the funds appropriated by this Act shall 
be available to convert to contractor performance an activity 
or function of the Department of Defense that, on or after the 
date of enactment of this Act, is performed by more than ten 
Department of Defense civilian employees until a most efficient 
and cost-effective organization analysis is completed on such 
activity or function and certification of the analysis is made 
to the Committees on Appropriations of the House of 
Representatives and the Senate: Provided, That this section 
shall not apply to a commercial or industrial type function of 
the Department of Defense that: (1) is included on the 
procurement list established pursuant to section 2 of the Act 
of June 25, 1938 (41 U.S.C. 47), popularly referred to as the 
Javits-Wagner-O'Day Act; (2) is planned to be converted to 
performance by a qualified nonprofit agency for the blind or by 
a qualified nonprofit agency for other severely handicapped 
individuals in accordance with that Act; or (3) is planned to 
be converted to performance by a qualified firm under 51 
percent Native American ownership.


                          (transfer of funds)


    Sec. 8021. Funds appropriated in title III of this Act for 
the Department of Defense Pilot Mentor-Protege Program may be 
transferred to any other appropriation contained in this Act 
solely for the purpose of implementing a Mentor-Protege Program 
developmental assistance agreement pursuant to section 831 of 
the National Defense Authorization Act for Fiscal Year 1991 
(Public Law 101-510; 10 U.S.C. 2301 note), as amended, under 
the authority of this provision or any other transfer authority 
contained in this Act.
    Sec. 8022. None of the funds in this Act may be available 
for the purchase by the Department of Defense (and its 
departments and agencies) of welded shipboard anchor and 
mooring chain 4 inches in diameter and under unless the anchor 
and mooring chain are manufactured in the United States from 
components which are substantially manufactured in the United 
States: Provided, That for the purpose of this section 
manufactured will include cutting, heat treating, quality 
control, testing of chain and welding (including the forging 
and shot blasting process): Provided further, That for the 
purpose of this section substantially all of the components of 
anchor and mooring chain shall be considered to be produced or 
manufactured in the United States if the aggregate cost of the 
components produced or manufactured in the United States 
exceeds the aggregate cost of the components produced or 
manufactured outside the United States: Provided further, That 
when adequate domestic supplies are not available to meet 
Department of Defense requirements on a timely basis, the 
Secretary of the service responsible for the procurement may 
waive this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations that such an 
acquisition must be made in order to acquire capability for 
national security purposes.

                          (transfer of funds)

    Sec. 8023. None of the funds appropriated by this Act 
available for the Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS) shall be available for the 
reimbursement of any health care provider for inpatient mental 
health service for care received when a patient is referred to 
a provider of inpatient mental health care or residential 
treatment care by a medical or health care professional having 
an economic interest in the facility to which the patient is 
referred: Provided, That this limitation does not apply in the 
case of inpatient mental health services provided under the 
program for the handicapped under subsection (d) of section 
1079 of title 10, United States Code, provided as partial 
hospital care, or provided pursuant to a waiver authorized by 
the Secretary of Defense because of medical or psychological 
circumstances of the patient that are confirmed by a health 
professional who is not a Federal employee after a review, 
pursuant to rules prescribed by the Secretary, which takes into 
account the appropriate level of care for the patient, the 
intensity of services required by the patient, and the 
availability of that care.
      Sec. 8024. Of the funds made available by this Act in 
title III, Procurement, $8,000,000, drawn pro rata from each 
appropriations account in title III, shall be available for 
incentive payments authorized by section 504 of the Indian 
Financing Act of 1974, 25 U.S.C. 1544. These payments shall be 
available only to contractors which have submitted 
subcontracting plans pursuant to 15 U.S.C. 637(d), and 
according to regulations which shall be promulgated by the 
Secretary of Defense within 90 days of the passage of this Act.
    Sec. 8025. Funds available in this Act may be used to 
provide transportation for the next-of-kin of individuals who 
have been prisoners of war or missing in action from the 
Vietnam era to an annual meeting in the United States, under 
such regulations as the Secretary of Defense may prescribe.
      Sec. 8026. During the current fiscal year, none of the 
funds available to the Department of Defense may be used to 
procure or acquire (1) defensive handguns unless such handguns 
are the M9 or M11 9mm Department of Defense standard handguns, 
or (2) offensive handguns except for the Special Operations 
Forces: Provided, That the foregoing shall not apply to 
handguns and ammunition for marksmanship competitions.
      Sec. 8027. Notwithstanding any other provision of law, 
during the current fiscal year, the Secretary of Defense may, 
by Executive Agreement, establish with host nation governments 
in NATO member states a separate account into which such 
residual value amounts negotiated in the return of United 
States military installations in NATO member states may be 
deposited, in the currency of the host nation, in lieu of 
direct monetary transfers to the United States Treasury: 
Provided, That such credits may be utilized only for the 
construction of facilities to support United States military 
forces in that host nation, or such real property maintenance 
and base operating costs that are currently executed through 
monetary transfers to such host nations: Provided further, That 
the Department of Defense's budget submission for fiscal year 
1997 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, and the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate thirty days prior 
to the conclusion and endorsement of any such agreement 
established under this provision.
      Sec. 8028. 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, 
or M-1911 pistols.
      Sec. 8029. None of the funds available to the Department 
of the Navy may be used to enter into any contract for the 
overhaul, repair, or maintenance of any naval vessel homeported 
on the West Coast of the United States which includes charges 
for interport differential as an evaluation factor for award.
      Sec. 8030. Notwithstanding any other provision of law, 
none of the funds appropriated by this Act shall be available 
to pay more than 50 percent of an amount paid to any person 
under section 308 of title 37, United States Code, in a lump 
sum.
      Sec. 8031. None of the funds appropriated during the 
current fiscal year and hereafter, may be used by the 
Department of Defense to assign a supervisor's title or grade 
when the number of people he or she supervises is considered as 
a basis for this determination: Provided, That savings that 
result from this provision are represented as such in future 
budget proposals.
      Sec. 8032. None of the funds appropriated by this Act 
shall be available for payments under the Department of Defense 
contract with the Louisiana State University Medical Center 
involving the use of cats for Brain Missile Wound Research, and 
the Department of Defense shall not make payments under such 
contract from funds obligated prior to the date of the 
enactment of this Act, except as necessary for costs incurred 
by the contractor prior to the enactment of this Act: Provided, 
That funds necessary for the care of animals covered by this 
contract are allowed.
      Sec. 8033. Notwithstanding any other provision of law, 
funds available to the Department of Defense shall be made 
available to provide transportation of medical supplies and 
equipment, on a nonreimbursable basis, to American Samoa: 
Provided, That notwithstanding any other provision of law, 
funds available to the Department of Defense shall be made 
available to provide transportation of medical supplies and 
equipment, on a nonreimbursable basis, to the Indian Health 
Service when it is in conjunction with a civil-military 
project.
      Sec. 8034. None of the funds provided in this Act or any 
other Act shall be available to conduct bone trauma research at 
any Army Research Laboratory until the Secretary of the Army 
certifies that the synthetic compound to be used in the 
experiments is of such a type that its use will result in a 
significant medical finding, the research has military 
application, the research will be conducted in accordance with 
the standards set by an animal care and use committee, and the 
research does not duplicate research already conducted by a 
manufacturer or any other research organization.
      Sec. 8035. No more than $50,000 of the funds appropriated 
or made available in this Act shall be used 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 Committees on Appropriations of the House of 
Representatives and Senate that such a relocation is required 
in the best interest of the Government.
      Sec. 8036. During the current fiscal year, funds 
appropriated or otherwise available for any Federal agency, the 
Congress, the judicial branch, or the District of Columbia may 
be used for the pay, allowances, and benefits of an employee as 
defined by section 2105 of title 5 or an individual employed by 
the government of the District of Columbia, permanent or 
temporary indefinite, who--
            (1) is a member of a Reserve component of the Armed 
        Forces, as described in section 261 of title 10, or the 
        National Guard, as described in section 101 of title 
        32;
            (2) performs for the purpose of providing military 
        aid to enforce the law or providing assistance to civil 
        authorities in the protection or saving of life or 
        property or prevention of injury--
                    (A) Federal service under section 331, 332, 
                333, 3500, or 8500 of title 10, or other 
                provision of law, as applicable, or
                    (B) full-time military service for his 
                State, the District of Columbia, the 
                Commonwealth of Puerto Rico, or a territory of 
                the United States; and
            (3) requests and is granted--
                    (A) leave under the authority of this 
                section; or
                    (B) annual leave, which may be granted 
                without regard to the provisions of sections 
                5519 and 6323(b) of title 5, if such employee 
                is otherwise entitled to such annual leave:

Provided, That any employee who requests leave under subsection 
(3)(A) for service described in subsection (2) of this section 
is entitled to such leave, subject to the provisions of this 
section and of the last sentence of section 6323(b) of title 5, 
and such leave shall be considered leave under section 6323(b) 
of title 5.
      Sec. 8037. 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 twenty-four months after initiation of such 
study with respect to a single function activity or forty-eight 
months after initiation of such study for a multi-function 
activity.
      Sec. 8038. 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. 8039. Notwithstanding any other provision of law, 
each contract awarded by the Department of Defense in fiscal 
year 1996 for construction or service performed in whole or in 
part in a State which is not contiguous with another State and 
has an unemployment rate in excess of the national average rate 
of unemployment as determined by the Secretary of Labor shall 
include a provision requiring the contractor to employ, for the 
purpose of performing that portion of the contract in such 
State that is not contiguous with another State, individuals 
who are residents of such State and who, in the case of any 
craft or trade, possess or would be able to acquire promptly 
the necessary skills: Provided, That the Secretary of Defense 
may waive the requirements of this section in the interest of 
national security.
      Sec. 8040. 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. 8041. None of the funds appropriated or made 
available in this Act shall be used to reduce or disestablish 
the operation of the 53rd Weather Reconnaissance Squadron of 
the Air Force Reserve, if such action would reduce the WC-130 
Weather Reconnaissance mission below the levels funded in this 
Act.
      Sec. 8042. (a) Of the funds for the procurement of 
supplies or services appropriated by this Act, qualified 
nonprofit agencies for the blind or other severely handicapped 
shall be afforded the maximum practicable opportunity to 
participate as subcontractors and suppliers in the performance 
of contracts let by the Department of Defense.
      (b) During the current fiscal year, a business concern 
which has negotiated with a military service or defense agency 
a subcontracting plan for the participation by small business 
concerns pursuant to section 8(d) of the Small Business Act (15 
U.S.C. 637(d)) shall be given credit toward meeting that 
subcontracting goal for any purchases made from qualified 
nonprofit agencies for the blind or other severely handicapped.
      (c) For the purpose of this section, the phrase 
`'qualified nonprofit agency for the blind or other severely 
handicapped'' means a nonprofit agency for the blind or other 
severely handicapped that has been approved by the Committee 
for the Purchase from the Blind and Other Severely Handicapped 
under the Javits-Wagner-O'Day Act (41 U.S.C. 46-48).
      Sec. 8043. During the current fiscal year, net receipts 
pursuant to collections from third party payers pursuant to 
section 1095 of title 10, United States Code, shall be made 
available to the local facility of the uniformed services 
responsible for the collections and shall be over and above the 
facility's direct budget amount.
      Sec. 8044. 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 appropriation 
or fund which incurred such obligations.
      Sec. 8045. Of the funds made available in this Act, not 
less than $25,144,000 shall be available for the Civil Air 
Patrol, of which $16,704,000 shall be available for Operations 
and Maintenance.
      Sec. 8046. (a) None of the funds appropriated in this Act 
are available to establish a new FFRDC, either as a new entity, 
or as a separate entity administered by an organization 
managing another FFRDC, or as a nonprofit membership 
corporation consisting of a consortium of other FFRDCs and 
other nonprofit entities.
      (b) Limitation on Compensation.--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, may be 
compensated for his or her services as a member of such entity, 
or as a paid consultant, except under the same conditions, and 
to the same extent, as members of the Defense Science Board: 
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 of Defense from any 
source during fiscal year 1996 may be used by a defense FFRDC, 
through a fee or other payment mechanism, for charitable 
contributions, for construction of new buildings, for payment 
of cost sharing for projects funded by government grants, or 
for absorption of contract overruns.
      (d) Notwithstanding any other provision of law, of the 
amounts available to the Department of Defense during fiscal 
year 1996, not more than $1,162,650,000 may be obligated for 
financing activities of defense FFRDCs: Provided, That the 
total amounts appropriated in titles II, III, and IV of this 
Act are hereby reduced by $90,000,000 to reflect the funding 
ceiling contained in this subsection.
      Sec. 8047. None of the funds appropriated or made 
available on this Act shall be used to procure carbon, alloy or 
armor steel plate for use in any Government-owned facility or 
property under the control of the Department of Defense which 
were not melted and rolled in the United States or Canada: 
Provided, That these procurement restrictions shall apply to 
any and all Federal Supply Class 9515, American Society of 
Testing and Materials (ASTM) or American Iron and Steel 
Institute (AISI) specifications of carbon, alloy or armor steel 
plate: Provided further, That the Secretary of the military 
department responsible for the procurement may waive this 
restriction on a case-by-case basis by certifying in writing to 
the Committees on Appropriations of the House of 
Representatives and the Senate that adequate domestic supplies 
are not available to meet Department of Defense requirements on 
a timely basis and that such an acquisition must be made in 
order to acquire capability for national security purposes: 
Provided further, That these restrictions shall not apply to 
contracts which are in being as of the date of enactment of 
this Act.
      Sec. 8048. None of the unobligated balances available in 
the National Defense Stockpile Transition Fund during the 
current fiscal year may be obligated or expended to finance any 
grant or contract to conduct research, development, test and 
evaluation activities for the development or production of 
advanced materials, unless amounts for such purposes are 
specifically appropriated in a subsequent appropriations Act.
      Sec. 8049. For the purposes of this Act, the term 
``congressional defense committees'' means the National 
Security Committee of the House of Representatives, the Armed 
Services Committee of the Senate, the subcommittee on Defense 
of the Committee on Appropriations of the Senate, and the 
Subcommittee on National Security of the Committee on 
Appropriations of the House of Representatives.
      Sec. 8050. Notwithstanding any other provision of law, 
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. 8051. (a)(1) If the Secretary of Defense, after 
consultation with the United States Trade Representative, 
determines that a foreign country which is party to an 
agreement described in paragraph (2) has violated the terms of 
the agreement by discriminating against certain types of 
products produced in the United States that are covered by the 
agreement, the Secretary of Defense shall rescind the 
Secretary's blanket waiver of the Buy American Act with respect 
to such types of products produced in that foreign country.
      (2) An agreement referred to in paragraph (1) is any 
reciprocal defense procurement memorandum of understanding, 
between the United States and a foreign country pursuant to 
which the Secretary of Defense has prospectively waived the Buy 
American Act for certain products in that country.
      (b) The Secretary of Defense shall submit to Congress a 
report on the amount of Department of Defense purchases from 
foreign entities in fiscal year 1996. 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 1970 (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. 8052. Notwithstanding any other provision of law, 
the Secretary of Defense may, when he considers it in the best 
interest of the United States, cancel any part of an 
indebtedness, up to $2,500, that is or was owed to the United 
States by a member or former member of a uniformed service if 
such indebtedness, as determined by the Secretary, was incurred 
in connection with Operation Desert Shield/Storm: Provided, 
That the amount of an indebtedness previously paid by a member 
or former member and canceled under this section shall be 
refunded to the member.
      Sec. 8053. Appropriations contained in this Act that 
remain available at the end of the current fiscal year as a 
result of energy cost savings realized by the Department of 
Defense shall remain available for obligation for the next 
fiscal year to the extent, and for the purposes, provided in 
section 2865 of title 10, United States Code.
      Sec. 8054. During the current fiscal year, voluntary 
separation incentives payable under 10 U.S.C. 1175 may be paid 
in such amounts as are necessary from the assets of the 
Voluntary Separation Incentive Fund established by section 
1175(h)(1).
      Sec. 8055. 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.


                     (including transfer of funds)


      Sec. 8056. Amounts deposited during the current fiscal 
year to the special account established under 40 U.S.C. 
485(h)(2) and to the special account established under 10 
U.S.C. 2667(d)(1) are appropriated and shall be available until 
transferred by the Secretary of Defense to current applicable 
appropriations or funds of the Department of Defense under the 
terms and conditions specified by 40 U.S.C. 485(h)(2) (A) and 
(B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be 
available for the same time period and the same purposes as the 
appropriation to which transferred.
      Sec. 8057. During the current fiscal year, appropriations 
available to the Department of Defense may be used to reimburse 
a member of a reserve component of the Armed Forces who is not 
otherwise entitled to travel and transportation allowances and 
who occupies transient government housing while performing 
active duty for training or inactive duty training: Provided, 
That such members may be provided lodging in kind if transient 
government quarters are unavailable as if the member was 
entitled to such allowances under subsection (a) of section 404 
of title 37, United States Code: Provided further, That if 
lodging in kind is provided, any authorized service charge or 
cost of such lodging may be paid directly from funds 
appropriated for operation and maintenance of the reserve 
component of the member concerned.
      Sec. 8058. 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. 8059. None of the funds in this or any other Act 
shall be available for the preparation of studies on--
            (a) the feasibility of removal and transportation 
        of unitary chemical weapons from the eight chemical 
        storage sites within the continental United States to 
        Johnston Atoll: Provided, That this prohibition shall 
        not apply to General Accounting Office studies 
        requested by a Member of Congress or a Congressional 
        Committee; and
            (b) the potential future uses of the nine chemical 
        disposal facilities other than for the destruction of 
        stockpile chemical munitions and as limited by section 
        1412(c)(2), Public Law 99-145: Provided, That this 
        prohibition does not apply to future use studies for 
        the CAMDS facility at Tooele, Utah.
      Sec. 8060. 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. 8061. During the current fiscal year, annual 
payments granted under the provisions of section 4416 of the 
National Defense Authorization Act for Fiscal Year 1993 (Public 
Law 102-428; 106 Stat. 2714) shall be made from appropriations 
in this Act which are available for the pay of reserve 
component personnel.
      Sec. 8062. For fiscal year 1996, the total amount 
appropriated in this Act to fund the Uniformed Services 
Treatment Facilities program, operated pursuant to section 911 
of Public Law 97-99 (42 U.S.C. 248c), shall not exceed 
$315,000,000.
      Sec. 8063. Of the funds appropriated or otherwise made 
available by this Act, not more than $119,200,000 shall be 
available for payment of the operating costs of NATO 
Headquarters: Provided, That the Secretary of Defense may waive 
this section for Department of Defense support provided to NATO 
forces in and around the former Yugoslavia.
      Sec. 8064. Notwithstanding any other provision of law, 
the Naval shipyards of the United States shall be eligible to 
participate in any manufacturing extension program financed by 
funds appropriated in this or any other Act.
      Sec. 8065. 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 until cost of not more than $100,000.
      Sec. 8066. During the current fiscal year, appropriations 
available for the pay and allowances of active duty members of 
the Armed Forces shall be available to pay the retired pay 
which is payable pursuant to section 4403 of Public Law 102-484 
(10 U.S.C. 1293 note) under the terms and conditions provided 
in section 4403.
      Sec. 8067. (a) During the current fiscal year, none of 
the appropriations or funds available to the Defense Business 
Operations Fund 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 Defense Business 
Operations Fund if such an item would not have been chargeable 
to the 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 1997 budget request for the 
Department of Defense as well as all justification material and 
other documentation supporting the fiscal year 1997 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 1997 procurement appropriation and not in the 
supply management business area or any other area or category 
of the Defense Business Operations Fund.
      Sec. 8068. None of the funds provided in this Act shall 
be available for use by a Military Department to modify an 
aircraft, weapon, ship or other item of equipment, that the 
Military Department concerned plans to retire or otherwise 
dispose of within five years after completion of the 
modification: Provided, That this prohibition shall not apply 
to safety modifications: Provided further, That this 
prohibition may be waived by the Secretary of a Military 
Department if the Secretary determines it is in the best 
national security interest of the United States to provide such 
waiver and so notifies the congressional defense committees in 
writing.
      Sec. 8069. (a) None of the funds appropriated or 
otherwise made available in this Act may be used to transport 
or provide for the transportation of chemical munitions to the 
Johnston Atoll for the purpose of storing or demilitarizing 
such munitions.
      (b) The prohibition in subsection (a) shall not apply to 
any obsolete World War II chemical munition of the United 
States found in the World War II Pacific Theater of Operations.
      (c) The President may suspend the application of 
subsection (a) during a period of war in which the United 
States is a party.
      Sec. 8070. 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, 1997.
      Sec. 8071. 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. 8072. Of the funds appropriated to the Department of 
Defense under the heading ``Operation and Maintenance, Defense-
Wide'', not less than $8,000,000 shall be made available only 
for the mitigation of environmental impacts, including training 
and technical assistance to tribes, related administrative 
support, the gathering of information, documenting of 
environmental damage, and developing a system for 
prioritization of mitigation, on Indian lands resulting from 
Department of Defense activities.
      Sec. 8073. Notwithstanding any other provision of law, 
funds appropriated in this Act for the High Performance 
Computing Modernization Program shall be made available only 
for the acquisition and sustainment of operations, including 
maintenance of the supercomputing and related networking 
capability at (1) the DOD Science and Technology sites under 
the cognizance of the DDR&E, (2) the DOD Test and Evaluation 
centers under the Director, Test and Evaluation, OUSD (A&T), 
and (3) the Ballistic Missile Defense Organization: Provided, 
That the contracts, contract modifications, or contract options 
are awarded upon the requirements of the users.
      Sec. 8074. Amounts collected for the use of the 
facilities of the National Science Center for Communications 
and Electronics during the current fiscal year pursuant to 
section 1459(g) of the Department of Defense Authorization Act, 
1986 and deposited to the special account established under 
subsection 1459(g)(2) of that Act are appropriated and shall be 
available until expended for the operation and maintenance of 
the Center as provided for in subsection 1459(g)(2).
      Sec. 8075. To the extent authorized in law, the Secretary 
of Defense shall issue loan guarantees in support of U.S. 
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 guarantee 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 of Appropriations, 
National Security and International Relations in the House of 
Representatives on the implementation of this program.
      Sec. 8076. None of the funds appropriated in this Act may 
be used to fill the commander's position at any military 
medical facility with a health care professional unless the 
prospective candidate can demonstrate professional 
administrative skills.
      Sec. 8077. (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.
      Sec. 8078. None of the funds provided in this Act may be 
obligated or expended for the sale of zinc in the National 
Defense Stockpile if zinc commodity prices decline more than 
five percent below the London Metals Exchange market price 
reported on the date of enactment of this Act.
      Sec. 8079. None of the funds appropriated by this Act 
shall be available for a contract for studies, analyses, 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, or
            (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 in the Senate, determines 
that the award of such contract is in the interest of the 
national defense.
      Sec. 8080. Funds appropriated by this Act for 
intelligence activities are deemed to be specifically 
authorized by the Congress for purposes of section 504 of the 
National Security Act of 1947 (50 U.S.C. 414) during fiscal 
year 1996 until the enactment of the Intelligence Authorization 
Act for fiscal year 1996.
      Sec. 8081. (a) None of the funds made available by this 
Act may be obligated for design, development, acquisition, or 
operation of more than 47 Titan IV expendable launch vehicles, 
or for satellite mission-model planning for a Titan IV 
requirement beyond 47 vehicles.
      (b) $115,226,000 made available in this Act for Research, 
Development, Test and Evaluation, Air Force, may only be 
obligated for development of a new family of medium-lift and 
heavy-lift expendable launch vehicles evolved from existing 
technologies.
      Sec. 8082. None of the funds available to the Department 
of Defense in this Act may be used to establish additional 
field operating agencies of any element of the Department 
during fiscal year 1996, except for field operating agencies 
funded within the National Foreign Intelligence Program: 
Provided, That the Secretary of Defense may waive this section 
by certifying to the House and Senate Committees on 
Appropriations that the creation of such field operating 
agencies will reduce either the personnel and/or financial 
requirements of the Department of Defense.


                             (rescissions)


      Sec. 8083. Of the funds provided in Department of Defense 
Appropriations Acts, the following funds are hereby rescinded 
from the following accounts in the specified amounts:
      ``Aircraft Procurement, Air Force, 1994/1996'', 
$53,654,000;
      ``Missile Procurement, Air Force, 1994/1996'', 
$16,783,000;
      ``Weapons Procurement, Navy, 1995/1997'', $14,600,000;
      ``Shipbuilding and Conversion, Navy, 1995/1999'', 
$87,700,000;
      ``Other Procurement, Navy, 1995/1997'', $8,600,000;
      ``Aircraft Procurement, Air Force, 1995/1997'', 
$24,000,000;
      ``Missile Procurement, Air Force, 1995/1997'', 
$140,978,000;
      ``Other Procurement, Air Force, 1995/1997'', 
$180,000,000;
      ``Research, Development, Test and Evaluation, Army, 1995/
1996'', $9,000,000;
      ``Research, Development, Test and Evaluation, Navy, 1995/
1996'', $6,000,000;
      ``Research, Development, Test and Evaluation, Air Force, 
1995/1996'', $7,902,000;
      ``Research, Development, Test and Evaluation, Defense-
Wide, 1995/1996'', $12,000,000.
      Sec. 8084. Notwithstanding any other provision of law, 
for resident classes entering the war colleges after September 
30, 1996, the Department of Defense shall require that not less 
than 20 percent of the total of United States military students 
at each war college shall be from military departments other 
than the hosting military department: Provided, That each 
military department will recognize the attendance at a sister 
military department war college as the equivalent of attendance 
at it own war college for promotion and advancement of 
personnel.
      Sec. 8085. None of the funds in this or any other Act may 
be used to implement the plan to reorganize the regional 
headquarters and basic camps structure of the Reserve Officer 
Training Corps program of the Army until the Comptroller 
General of the United States has certified to the congressional 
defense committees that the methodology and evaluation of the 
potential sites were consistent with the established criteria 
for the consolidation, that all data used by the Army in the 
evaluation was accurate and complete, and that the conclusions 
reached are based upon the total costs of the Army's final plan 
to establish the Eastern Reserve Officer Training Corps 
Headquarters at Fort Benning, Georgia: Provided, That all cost, 
including Military Construction, shall be considered as well as 
an analysis of the impact of the consolidation on the 
surrounding communities for all affected installations.
      Sec. 8086. None of the funds provided in this Act may be 
obligated for payment on new contracts on which allowable costs 
charged to the government include payments for individual 
compensation at a rate in excess of $200,000 per year after 
July 1, 1996, unless the Office of Federal Procurement Policy 
establishes in the Federal Acquisition Regulations guidance 
governing the allowability of individual compensation.
      Sec. 8087. 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. 8088. 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. 8089. During the current fiscal year, funds 
appropriated in this Act are available to compensate members of 
the National Guard for duty performed pursuant to a plan 
submitted by a Governor of a State and approved by the 
Secretary of Defense under section 112 of title 32, United 
States Code: Provided, That during the performance of such 
duty, the members of the National Guard shall be under State 
command and control: Provided further, That such duty shall be 
treated as full-time National Guard duty for purposes of 
section 12602 (a)(2) and (b)(2) of title 10, United States 
Code.
      Sec. 8090. Funds appropriated in this Act for operation 
and maintenance of the Military Departments, Unified and 
Specified Commands and Defense Agencies shall be available for 
reimbursement of pay, allowances and other expenses which would 
otherwise be incurred against appropriations for the National 
Guard and Reserve when members of the National Guard and 
Reserve provide intelligence support to Unified Commands, 
Defense Agencies and Joint Intelligence Activities, including 
the activities and programs included within the General Defense 
Intelligence Program and the Consolidated Cryptologic Program: 
Provided, That nothing in this section authorizes deviation 
from established Reserve and National Guard personnel and 
training procedures.
      Sec. 8091. 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, 1995 
level.


                          (transfer of funds)


      Sec. 8092. Upon enactment of this Act, the Secretary of 
Defense shall make the following transfers of funds: Provided, 
That the amounts transferred shall be available for the same 
purposes as the appropriations to which transferred, and for 
the same time period as the appropriation from which 
transferred: Provided further, That the amounts shall be 
transferred between the following appropriations in the amount 
specified:

From:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1986/1990'':
            SSN-688 attack submarine program, $5,051,000;
            CG-47 cruiser program, $2,500,000;
            BB battleship reactivation, $4,400,000;
            T-AGOS SURTASS ship program, $2,135,000;
            LCAC landing craft air cushion program, $700,000;
            For craft, outfitting, post delivery, and cost 
        growth, $12,360,000;
            Weapons Procurement, Navy, 1994/1996, $30,900,000;
            Other Procurement, Navy, 1994/1996, $4,200,000;
            Other Procurement, Navy, 1995/1997, $5,000,000;
            Aircraft Procurement, Navy, 1994/1996, $2,056,000;

To:
            Under the heading, ``Shipbuilding and Conversion, 
        Navy, 1986/1990'':
            MSH coastal mine hunter program, $69,302,000;

From:
      Weapons Procurement, Navy, 1994/1996, $5,500,000;

To:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1987/1991'':
            AOE combat support ship program, $5,500,000;

From:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1988/1992'':
            SSN-688 attack submarine program, $1,500,000;

To:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1988/1992'':
            T-ACS auxiliary crane ship program, $1,500,000;

From:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1989/1993'':
            SSN-688 attack submarine program, $23,535,000;
            DDG-51 destroyer program, $33,700,000;
            T-AO fleet oiler program, $38,969,000;
            Other Procurement, Navy, 1995/1997, $3,500,000;

To:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1989/1993'':
            SSN-21 attack submarine program, $65,886,000;
            MHC coastal mine hunter program, $30,318,000;
            AOE combat support ship program, $3,500,000;

From:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1990/1994'':
            SSN-688 attack submarine program, $1,907,000;
            DDG-51 destroyer program, $22,669,000;
            For craft, outfitting and post delivery, 
        $3,900,000;
            Aircraft Procurement, Navy, 1994/1996, $17,944,000;
            Procurement of Ammunition, Navy and Marine Corps, 
        1995/1997, $5,116,000;
            Weapons Procurement, Navy, 1995/1997, $2,000,000;

      To:
Under the heading, ``Shipbuilding and Conversion, Navy, 1990/
1994'':
            MHC coastal mine hunter, $9,536,000;
            T-AGOS surveillance ship program, $42,000,000;
            AOE combat support ship program, $2,000,000;

From:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1991/1995'':
            SSN-21 attack submarine program, $18,330,000;

To:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1991/1995'':
            LHD-1 amphibious assault ship program, $6,178,000;
            MHC coastal mine hunter program, $12,152,000;

From:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1992/1996'':
            DDG-51 destroyer program, $5,315,000;
            For craft, outfitting, post delivery, and DBOF 
        transfer, $9,675,000;
            For escalation, $3,347,000;
            Weapons Procurement, Navy, 1995/1997, $7,500,000;
            Procurement, Marine Corps, 1995/1997, $378,000;
            Other Procurement, Navy, 1995/1997, $355,000;
            Aircraft Procurement, Navy, 1995/1997, $3,600,000;
            Research, Development, Test and Evaluation, Navy, 
        1995/1996, $5,600,000;

To:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1992/1996'':
            MHC coastal mine hunter program, $35,770,000;

From:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1993/1997'':
            LSD-41 cargo variant ship program, $1,600,000;
            For craft, outfitting, post delivery, and first 
        destination transportation, and inflation adjustments, 
        $5,627,000;
            Procurement of Ammunition, Navy and Marine Corps, 
        1995/1997, $1,784,000;
            Other Procurement, Navy, 1995/1997, $645,000;
            Weapons Procurement, Navy, 1994/1996, $1,963,000;

To:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1993/1997'':
            DDG-51 destroyer program, $7,356,000;
            AOE combat support ship program, $2,300,000;
            MHC coastal mine hunter program, $1,963,000;

From:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1994/1998'':
            MCS(C) program, $4,819,000;
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1995/1999'':
            Nuclear submarine main steam condensor industrial 
        base, $900,000;

To:
      Under the heading, ``Shipbuilding and Conversion, Navy, 
1994/1998'':
            LHD program, $5,719,000.
      Sec. 8093. The Department shall include, in the operation 
of TRICARE Regions 7/8, a region-wide wraparound care package 
that requires providers of residential treatment services to 
share financial risk through case rate reimbursement, to 
include planning and individualized wraparound services to 
prevent recidivism.
      Sec. 8094. All refunds or other amounts collected in the 
administration of the Civilian Health and Medical Program of 
the Uniformed Service (CHAMPUS) shall be credited to current 
year appropriations.


                     (including transfer of funds)


      Sec. 8095. None of the funds appropriated in the Act may 
be transferred to or obligated from the Pentagon Reservation 
Maintenance Revolving Fund, unless the Secretary of Defense 
certifies that the total cost for the planning design, 
construction and installation of equipment for the renovation 
of the Pentagon Reservation will not exceed $1,218,000,000.
      Sec. 8096. (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. 8097. Appropriations available in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' for 
increasing energy and water efficiency in Federal buildings 
may, during their period of availability, be transferred to 
other appropriations or funds of the Department of Defense for 
projects related to increasing energy and water efficiency, to 
be merged with and to be available for the same general 
purposes, and for the same time period, as the appropriation or 
fund to which transferred.
      Sec. 8098. Funds in the amount of $61,300,000 received 
during fiscal year 1996 by the Department of the Air Force 
pursuant to the ``Memorandum of Agreement between the National 
Aeronautics and Space Administration and the United States Air 
Force on Titan IV/Centaur Launch Support for the Cassini 
Mission,'' signed September 8, 1994, and September 23, 1994, 
and Attachments, A, B and C to the Memorandum, shall be merged 
with appropriations available for research, development, test 
and evaluation and procurement for fiscal year 1996, and shall 
be available for the same time period as the appropriation with 
which merged, and shall be available for obligation only for 
those Titan IV vehicles and Titan IV-related activities under 
contract as of the date of enactment of this Act, as well as on 
the follow-on launch services and program sustaining support 
contract to be awarded in fiscal year 1996.
      Sec. 8099. 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 Committee 
on Appropriations of the House of Representatives and the 
Senate, that adequate domestic supplies are not available to 
meet Department of Defense requirements on a timely basis and 
that such an acquisition must be made in order to acquire 
capability for national security purposes.
      Sec. 8100. Not less than 30 percent of the total 
inventory, or 60,000 pounds, of the pentaborane currently 
stored in non-defective containers at Edwards Air Force Base, 
California, will be retained until the Secretary of Energy 
certified to the House and Senate Committees on Appropriations 
that the Secretary does not intend to use the pentaborane at 
the Idaho National Engineering Laboratory for: (a) a source of 
raw material for environmental remediation of high level, 
liquid radioactive waste, or (b) as a source of raw material 
for boron drug for the Boron Neutron Capture Therapy or other 
medical or industrial applications: Provided, That the 
Secretary of the Air Force is authorized to dispose of any 
materials that pose a significant health or safety hazard.
      Sec. 8101. The total amount appropriated in title II, 
III, and IV of this Act is hereby reduced by $30,000,000 for 
savings through improved management of contractor automatic 
data processing costs charged through indirect rates on 
Department of Defense acquisition contracts.
      Sec. 8102. (a) Not later than October 1, 1995, the 
Secretary of Defense shall require that each disbursement by 
the Department of Defense in an amount in excess of $5,000,000 
be matched to a particular obligation before the disbursement 
is made.
      (b) The Secretary shall ensure that a disbursement in 
excess of the threshold amount applicable under subsection (a) 
is not divided into multiple disbursements of less than that 
amount for the purpose of avoiding the applicability of such 
subsection to that disbursement.
      (c) The Secretary of Defense may waive a requirement for 
advance matching of a disbursement of the Department of Defense 
with a particular obligation in the case of (1) a disbursement 
involving deployed forces, (2) a disbursement for an operation 
in a war declared by Congress or a national emergency declared 
by the President or Congress, or (3) a disbursement under any 
other circumstances for which the waiver is necessary in the 
national security interests of the United States, as determined 
by the Secretary and certified by the Secretary to the 
congressional defense committees.
      (d) This section shall not be construed to limit the 
authority of the Secretary of Defense to require that a 
disbursement not in excess of the amount applicable under 
subsection (a) be matched to a particular obligation before the 
disbursement is made.
      Sec. 8103. 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. 8104. None of the funds appropriated in this Act to 
the Department of the Army may be obligated for procurement of 
120mm mortars or 120mm mortar ammunition manufactured outside 
of the United States: Provided, That the Secretary of the 
military department responsible for such procurement may waive 
this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations of the House of 
Representatives and the Senate, that adequate domestic supplies 
are not available to meet Department of Defense requirements on 
a timely basis and that such an acquisition must be made in 
order to acquire capability for national security purposes.
      Sec. 8105. The Department of Defense shall release all 
funds appropriated and available for the HAVE GAZE program to 
the Department of the Air Force for obligation under existing 
contractual arrangements.
      Sec. 8106. None of the funds available to the Department 
of Defense during fiscal year 1996 may be obligated or expended 
to support or finance the activities of the Defense Policy 
Advisory Committee on Trade.
      Sec. 8107. Notwithstanding any other provision of law, 
(a) funds available to the Navy in the Operation and 
Maintenance appropriation for refueling overhauls and defueling 
inactivations of nuclear-powered warships are available to 
transport the shipments of naval spent nuclear fuel to the 
Idaho National Engineering Laboratory needed for examination 
and storage to avoid threats to the national security; and (b) 
the Secretary of the Navy is hereby authorized to immediately 
commence and accomplish such transportation: Provided, That the 
Secretary of Defense shall make the determination as to what 
shipments are required for that purpose and shall ensure that 
the shipments are made in accordance with the practices and 
requirements applied to previous container shipments of naval 
spent fuel to the Idaho National Engineering Laboratory: 
Provided further, That the authority in this section shall 
expire on September 30, 1996 or upon the vacation or stay of 
the current or any subsequent injunction issued by the United 
States District Court for the District of Idaho which enjoins 
such shipments, whichever occurs first: Provided further, That 
the authority in this section may not be used unless the 
Secretary of Defense certifies in writing to the congressional 
defense committees that a good-faith agreement between the 
State of Idaho and the United States Government was attempted 
but could not be reached concerning interim shipments of spent 
nuclear fuel enjoined by any such injunction based on national 
security reasons.
      Sec. 8108. None of the funds appropriated by this Act 
shall be available to lease or charter a vessel in excess of 
seventeen months (inclusive of any option periods) to transport 
fuel or oil for the Department of Defense if the vessel was 
constructed after October 1, 1995 unless the Secretary of 
Defense requires that the vessel be constructed in the United 
States with a double hull under the long-term lease or charter 
authority provided in section 2401 note of title 10 United 
States Code: Provided, That this limitation shall not apply to 
contracts in force on the date of enactment of this Act: 
Provided further, That by 1997 at least 20 percent of new 
annual leases and charters must be for ships of double hull 
design constructed after October 1, 1995 if available in 
numbers sufficient to satisfy this requirement: Provided 
further, That the Military Sealift Command shall plan to 
achieve the goal of eliminating single hull ship leases by the 
year 2015.
      Sec. 8109. None of the funds appropriated or made 
available in this Act to the Department of the Navy shall be 
used to develop or procure main propulsion engines for the LPD-
17 class of ships unless such equipment is powered by a diesel 
engine 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. 8110. None of the funds appropriated or made 
available in this Act to the Department of the Navy shall be 
used to develop or procure an emergency generator set for the 
New Attack Submarine unless such equipment is powered by a 
diesel engine 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. 8111. None of the funds in this Act may be used to 
transport military personnel into Edwards Air Force Base for 
training rotations at the National Training Center after April 
15, 1996: Provided, That the Department of Defense shall comply 
with the recommendations of the fiscal year 1996 Military 
Construction bill as it pertains to the interim and permanent 
National Training Center Airhead.
      Sec. 8112. The Secretary of Defense and the Secretary of 
the Army shall reconsider the decision not to include the 
infantry military occupational specialty among the military 
skills and specialties for which special pays are provided 
under the Selected Reserve Incentive Program.
      Sec. 8113. (a) The Secretary of Defense shall submit, on 
a quarterly basis, a report to the congressional defense 
committees, the Committee on International Relations of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate setting forth all costs (including incremental 
costs) incurred by the Department of Defense during the 
preceding quarter in implementing or supporting resolutions of 
the United Nations Security Council, including any such 
resolution calling for international sanctions, international 
peacekeeping operations, and humanitarian missions undertaken 
by the Department of Defense. The quarterly report shall 
include an aggregate of all such Department of Defense costs by 
operation or mission.
        (b) The Secretary of Defense shall detail in the 
quarterly reports all efforts made to seek credit against past 
United Nations expenditures and all efforts made to seek 
compensation from the United Nations for costs incurred by the 
Department of Defense in implementing and supporting United 
Nations activities.
      Sec. 8114. (a) Limitation.--Of the funds available under 
title II under the heading ``Former Soviet Union Threat 
Reduction'' for dismantlement and destruction of chemical 
weapons, not more than $52,000,000 may be obligated or expended 
for that purpose until the President certifies to Congress the 
following:
            (1) That the United States and Russia have 
        completed a joint laboratory study evaluating the 
        proposal of Russia to neutralize its chemical weapons 
        and the United States agrees with the proposal.
            (2) That Russia is in the process of preparing, 
        with the assistance of the United States as necessary, 
        a comprehensive plan to manage the dismantlement and 
        destruction of the Russia chemical weapons stockpile.
            (3) That the United States and Russia are committed 
        to resolving outstanding issues under the 1989 Wyoming 
        Memorandum of Understanding and the 1990 Bilateral 
        Destruction Agreement.
      (b) Definitions.--In this section:
            (1) The term ``1989 Wyoming Memorandum of 
        Understanding'' means the Memorandum of Understanding 
        between the Government of the United States of America 
        and the Government of the Union of Soviet Socialist 
        Republics Regarding a Bilateral Verification Experiment 
        and Data Exchange Related to Prohibition on Chemical 
        Weapons, signed at Jackson Hole, Wyoming, on September 
        23, 1989.
            (2) The term ``1990 Bilateral Destruction 
        Agreement'' means the Agreement between the United 
        States of America and the Union of Soviet Socialist 
        Republics on destruction and non-production of chemical 
        weapons and on measures to facilitate the multilateral 
        convention on banning chemical weapons signed on June 
        1, 1990.
      Sec. 8115. (a) International Peacekeeping, Peace 
Enforcement, and Humanitarian Assistance Operations.--It is the 
sense of Congress that in the event of a deployment or 
participation of United States Armed Forces units in any 
international peacekeeping, peace enforcement, and humanitarian 
assistance operation, the President must engage in 
consultations with the bipartisan leadership of Congress and 
the congressional committees named in subsection (e) regarding 
such operation in accordance with subsection (c)(1).
      (b) Covered Operations.--(1) This section applies to the 
following:
            (A) Any international peacekeeping or peace-
        enforcement operation that is not underway as of the 
        date of the enactment of this Act and that is 
        authorized by the Security Council of the United 
        Nations under chapter VI or VII of the Charter of the 
        United Nations.
            (B) Any other international peacekeeping or peace-
        enforcement operation that is not underway as of the 
        date of the enactment of this Act.
            (C) Any deployment after the date of the enactment 
        of this Act of United States ground forces in the 
        territory of the former Yugoslavia above the level of 
        such forces so deployed as of such date of enactment, 
        other than a deployment involving fewer than 100 
        personnel.
            (D) Except as provided in paragraph (2), any 
        international humanitarian assistance operation.
      (2) This section does not apply with respect to--
            (A) an international humanitarian assistance 
        operation carried out in response to a disaster; or
            (B) any other international humanitarian assistance 
        operation if the President reports to Congress that the 
        estimated cost of such operation is less than 
        $50,000,000.
      (c) Consultation With Congress.--(1) Consultations under 
subsection (a) in the case of any operation shall be initiated 
before the initial deployment of United States Armed Forces 
units to participate in the operation and, whenever possible, 
at least 15 days before such deployment. However, if the 
President determines that the national security so requires, 
the President may delay the initiation of such consultations 
until after such initial deployment, but in no case may such 
consultations be initiated later than 48 hours after such 
deployment.
      (2) Such consultations shall include discussion of all of 
the following:
            (A) The goals of the operation and the mission of 
        any United States Armed Forces units involved in the 
        operation.
            (B) The United States interests that will be served 
        by the operation.
            (C) The estimated cost of the operation.
            (D) The strategy by which the President proposes to 
        fund the operation, including possible supplemental 
        appropriations or payments from international 
        organizations, foreign countries, or other donors.
            (E) The extent of involvement of armed forces and 
        other contributions of personnel from other nations.
            (F) The anticipated duration and scope of the 
        operation.
        (3) Such consultations shall continue on a periodic 
basis throughout the period of the deployment.
        (d) Requests for Emergency Supplemental 
Appropriations.--Whenever there is a deployment of United 
States Armed Forces to perform an international humanitarian, 
peacekeeping, or peace-enforcement operation, the President 
should seek emergency supplemental appropriations to meet the 
incremental costs to the Department of Defense of that 
deployment not later than 90 days after the date on which such 
deployment commences.
        (e) Committees To Be Included in Consultations.--The 
committees referred to in subsection (a) are the following:
            (1) The congressional defense committees.
            (2) The Committee on Foreign Relations of the 
        Senate and the Committee on International Relations of 
        the House of Representatives.
            (3) The Select Committee on Intelligence of the 
        Senate and the Permanent Select Committee on 
        Intelligence of the House of Representatives.
      Sec. 8116. (a) Findings.--The Senate makes the following 
findings:
            (1) The President of France stated on June 13, 
        1995, that the Republic of France plans to conduct 
        eight nuclear test explosions over the next several 
        months.
            (2) The People's Republic of China continues to 
        conduct underground nuclear weapons tests.
            (3) The United States, France, Russia, and Great 
        Britain have observed a moratorium on nuclear testing 
        since 1992.
            (4) A resumption of testing by the Republic of 
        France could result in the disintegration of the 
        current testing moratorium and a renewal of underground 
        testing by other nuclear weapon states.
            (5) A resumption of nuclear testing by the Republic 
        of France raises serious environmental and health 
        concerns.
            (6) The United Nations Conference on Disarmament 
        presently is meeting in Geneva, Switzerland, for the 
        purpose of negotiating a Comprehensive Nuclear Test Ban 
        Treaty (CTBT), which would halt permanently the 
        practice of conducting nuclear test explosions.
            (7) Continued underground weapons testing by the 
        Republic of France and the People's Republic of China 
        undermines the efforts of the international community 
        to conclude a CTBT by 1996, a goal endorsed by 175 
        nations, at the recently completed NPT Extension and 
        Review Conference (the conference for the extension and 
        review of the Nuclear Non-Proliferation Treaty).
      (b) Sense of the Senate.--It is the sense of the Senate 
that the Republic of France and the People's Republic of China 
should abide by the current international moratorium on nuclear 
test explosions and refrain from conducting underground nuclear 
tests in advance of a Comprehensive Test Ban Treaty.
      Sec. 8117. (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, and 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.--(1) This section applies to--
            (A) 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
            (B) any other international peacekeeping peace-
        enforcement, humanitarian, or disaster relief 
        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. 8118. None of the funds available to the Department 
of Defense shall be obligated or expended to make a financial 
contribution to the United Nations for the cost of any United 
Nations peacekeeping activity (whether pursuant to assessment 
or a voluntary contribution) or for payment of any United 
States arrearage to the United Nations.
      Sec. 8119. None of the funds made available in this Act 
may be used to administer any policy that permits the 
performance of abortions at medical treatment or other 
facilities of the Department of Defense, except when it is made 
known to the Federal official having authority to obligate or 
expend such funds that the life of the mother would be 
endangered if the fetus were carried to term: Provided, That 
the provisions of this section shall enter into force if 
specifically authorized in the National Defense Authorization 
Act for Fiscal Year 1996.
      Sec. 8120. None of the funds made available in this Act 
under the heading ``Procurement of Ammunition, Army'' may be 
obligated or expended for the procurement of munitions unless 
such acquisition fully complies with the Competition in 
Contracting Act.
      Sec. 8121. None of the funds in this Act may be used to 
implement any change to the computation of military retired pay 
as required by law in fiscal year 1995 for military personnel 
who entered the Service before September 8, 1980.
      Sec. 8122. 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 it is made known to the Federal official having authority 
to obligate or expend such funds that--
      (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. 8123. None of the funds provided in title II of this 
Act for ``Former Soviet Union Threat Reduction'' may be 
obligated or expended to finance housing for any individual 
when it is made known to the Federal official having authority 
to obligate or expend such funds that such individual was a 
member of the military forces of the Soviet Union or that such 
individual is or was a member of the military forces of the 
Russian Federation.
      Sec. 8124. It is the sense of Congress that none of the 
funds available to the Department of Defense shall be obligated 
or expended for the deployment or participation of United 
States Armed Forces in any peacekeeping operation in Bosnia-
Herzegovina, unless such deployment or participation is 
specifically authorized by a law enacted after the date of 
enactment of this Act: Provided, That this section shall not 
apply to operations of the nature and extent conducted by 
United States Armed Forces in Bosnia-Herzegovina during fiscal 
year 1995, emergency air rescue operations, the airborne 
delivery of humanitarian supplies, or the planning and 
execution of OPLAN 40104 or similar operations to extract 
UNPROFOR personnel.
      Sec. 8125. Notwithstanding any other provision in this 
Act, the total amount appropriated in this Act is hereby 
reduced by $832,000,000 to reflect savings from revised 
economic assumptions, to be distributed as follows:
      Operation and Maintenance, Army, $54,000,000;
      Operation and Maintenance, Navy, $80,000,000;
      Operation and Maintenance, Marine Corps, $9,000,000;
      Operation and Maintenance, Air Force, $51,000,000;
      Operation and Maintenance, Defense-Wide, $36,000,000;
      Operation and Maintenance, Army Reserve, $4,000,000;
      Operation and Maintenance, Navy Reserve, $4,000,000;
      Operation and Maintenance, Marine Corps Reserve, 
$1,000,000;
      Operation and Maintenance, Air Force Reserve, $3,000,000;
      Operation and Maintenance, Army National Guard, 
$7,000,000;
      Operation and Maintenance, Air National Guard, 
$7,000,000;
      Drug Interdiction and Counter-Drug Activities, Defense, 
$5,000,000;
      Environmental Restoration, Defense, $11,000,000;
      Overseas Humanitarian, Disaster, and Civic Aid, 
$1,000,000;
      Former Soviet Union Threat Reduction, $2,000,000;
      Defense Health Program, $51,000,000;
      Aircraft Procurement, Army, $9,000,000;
      Missile Procurement, Army, $5,000,000;
      Procurement of Weapons and Tracked Combat Vehicles, Army, 
$10,000,000;
      Procurement of Ammunition, Army, $6,000,000;
      Other Procurement, Army, $17,000,000;
      Aircraft Procurement, Navy, $29,000,000;
      Weapons Procurement, Navy, $13,000,000;
      Shipbuilding and Conversion, Navy, $42,000,000;
      Other Procurement, Navy, $18,000,000;
      Procurement, Marine Corps, $4,000,000;
      Aircraft Procurement, Air Force, $50,000,000;
      Missile Procurement, Air Force, $29,000,000;
      Other Procurement, Air Force, $45,000,000;
      Procurement, Defense-Wide, $16,000,000;
      Chemical Agents and Munitions Destruction, Defense, 
$5,000,000;
      Research, Development, Test and Evaluation, Army, 
$20,000,000;
      Research, Development, Test and Evaluation, Navy, 
$50,000,000;
      Research, Development, Test and Evaluation, Air Force, 
$79,000,000;
      Research, Development, Test and Evaluation, Defense-Wide, 
$57,000,000; and
      Developmental Test and Evaluation, Defense, $2,000,000: 
Provided, That these reductions shall be applied proportionally 
to each budget activity, activity group and subactivity group 
and each program, project, and activity within each 
appropriation account.
      Sec. 8126. Notwithstanding any other provision of law, of 
the revenue collected by the Defense Business Operations Fund, 
$117,000,000 shall be made available for obligation and 
expenditure for termination liability, lease and operational 
costs for aircraft to accomplish the VC-137 aircraft mission; 
Provided, That the funds made available pursuant to this 
section shall remain available until expended.
      Sec. 8127. Funds appropriated by this and future Acts 
under the heading ``Missile Procurement, Air Force'' may be 
obligated for payment of satellite on-orbit incentives in the 
fiscal year in which an incentive payment is earned: Provided, 
That any obligation made pursuant to this section may not be 
entered into until 30 calendar days in session after the 
congressional defense committees have been notified that an on-
orbit incentive payment has been earned.
      Sec. 8128. (a) Not more than a total of $11,000,000 of 
the funds appropriated under the heading ``Research, 
Development, Test and Evaluation, Army'', in title IV of Public 
Law 103-335, and in title IV of this Act, may be made available 
for support of a NATO Alliance Ground Surveillance (AGS) 
program based on the Joint Surveillance/Target Attack Radar 
System (JSTARS).
      (b) Not more than a total of $6,450,000 of the funds 
appropriated under the heading ``Research, Development, Test 
and Evaluation, Air Force'', in title IV of Public Law 103-335, 
and in title IV of this Act, may be made available for support 
of a NATO Alliance Ground Surveillance (AGS) program based on 
JSTARS.
      Sec. 8129. (a) In addition to any other reductions 
required by this Act, the following funds are hereby reduced 
from the following accounts in title IV of this Act in the 
specified amounts:
      ``Research, Development, Test and Evaluation, Army'', 
$47,852,000;
      ``Research, Development, Test and Evaluation, Navy'', 
$85,947,000;
      ``Research, Development, Test and Evaluation, Air 
Force'', $128,958,000; and
      ``Research, Development, Test and Evaluation, Defense-
Wide'', $62,243,000.
      (b) The reductions taken pursuant to subsection (a) shall 
be applied on a pro-rata basis by subproject within each R-1 
program element as modified by this Act, except that no 
reduction may be taken against the funds made available to the 
Department of Defense for Ballistic Missile Defense.
      This Act may be cited as the ``Department of Defense 
Appropriations Act, 1996''.
      And the Senate agree to the same.
                                   Bill Young,
                                   Joseph M. McDade,
                                   Bob Livingston,
                                   Jerry Lewis,
                                   Joe Skeen,
                                   David L. Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Mark W. Neumann (except to the 
                                       agreement regarding U.S. 
                                       deployment in Bosnia),
                                   John P. Murtha,
                                   Norman D. Dicks,
                                   Charles Wilson,
                                   W.G. (Bill) Hefner,
                                   Martin Olav Sabo,
                                 Managers on the Part of the House.

                                   Ted Stevens,
                                   Thad Cochran,
                                   Arlen Specter,
                                   Pete V. Domenici,
                                   Phil Gramm,
                                   Kit Bond,
                                   Mitch McConnell,
                                   Connie Mack,
                                   Richard C. Shelby,
                                   Mark O. Hatfield,
                                   Daniel K. Inouye,
                                   Fritz Hollings,
                                   J. Bennett Johnston,
                                   Robert C. Byrd,
                                   Patrick J. Leahy,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 2126), making 
appropriations for the Department of Defense for the fiscal 
year ending September 30, 1996, 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, 1996, incorporates some of the provisions 
of both the House and Senate versions of the bill. The language 
and allocations set forth in House Report 104-208 and Senate 
Report 104-124 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, 1996, 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 1997, the 
conferees direct the Department of Defense to transmit to the 
congressional defense committees a budget justification 
document to be known as the ``0-1'' which shall identify, at 
the budget activity, activity group, and subactivity group 
level, the amounts requested by the President to be 
appropriated to the Department of Defense for operation and 
maintenance in any budget request, or amended budget request, 
for fiscal year 1997.

                      TITLE I--MILITARY PERSONNEL

      The conferees agree to the following amounts and end 
strength totals for the Military Personnel accounts as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Active personnel:...............................                                                                
    Army........................................      19,721,408      19,884,608      19,776,587      19,809,187
    Navy........................................      16,930,609      17,006,363      16,979,209      17,008,563
    Marine Corps................................       5,877,740       5,928,340       5,886,540       5,885,740
    Air Force...................................      17,108,120      17,294,620      17,156,443      17,207,743
Reserve personnel:..............................                                                                
    Army........................................       2,101,366       2,122,566       2,102,466       2,122,466
    Navy........................................       1,348,223       1,350,023       1,349,323       1,355,523
    Marine Corps................................         361,751         366,101         364,551         378,151
    Air Force...................................         782,761         783,586         783,861         784,586
National Guard personnel:.......................                                                                
    Army........................................       3,218,258       3,240,858       3,222,422       3,242,422
    Air Force...................................       1,246,427       1,254,827       1,259,627       1,259,627
                                                 ---------------------------------------------------------------
      Total, Military Personnel.................      68,696,663      69,231,892      68,881,029      69,054,008
----------------------------------------------------------------------------------------------------------------

           operations provide comfort/enhanced southern watch

      The conference agreement includes $647,100,000, as 
proposed by the House, for unbudgeted costs associated with 
Operations Provide Comfort and Enhanced Southern Watch. Of this 
amount, $77,500,000 is appropriated in Title I, Military 
Personnel, and $569,600,000 is appropriated in Title II, 
Operation and Maintenance. The conferees designate these funds 
as an item of Congressional interest, meaning they can only be 
used for additional incremental costs of Operations Provide 
Comfort and Enhanced Southern Watch unless prior approval is 
granted by the House and Senate Committees on Appropriations 
through normal reprogramming procedures. In addition, the 
conferees direct that none of these funds may be obligated or 
expended unless the costs of these operations are fully 
submitted in the President's fiscal year 1997 budget request. 
The conferees direct that funds shall be available for 
obligation only after submission of the fiscal year 1997 budget 
request, and only if the request fully funds and details the 
estimated costs of these operations. The conferees direct the 
Secretary of Defense to provide a report to the House and 
Senate Committees on Appropriations by January 30, 1996, on 
planned obligations and expenditures of these funds.

                        force structure changes

      The conferees recommend an increase of $38,500,000 to 
maintain fiscal year 1995 Primary Authorized Aircraft (PAA) 
levels in Air National Guard general purpose fighter forces 
during fiscal year 1996.
      The conferees recommend an increase of $34,200,000 to 
sustain the maritime patrol aircraft force structure at 13 
active and 9 reserve squadrons in fiscal year 1996.
      The conferees also recommend an increase of $9,600,000 
for additional Marine Corps Reserve full-time support, in order 
to facilitate the Marine Corps Reserve's contingency role and 
operations.

        military technician and medical personnel reprogramming

      The conferees direct that the Department of Defense, in 
the event of sequestration during fiscal year 1996, protect 
military (civilian) technicians and medical personnel necessary 
to maintain the current level of medical and Reserve Component 
operations, from any associated reduction of personnel pay and 
medical programs (to include CHAMPUS).

                      basic allowance for quarters

      The conferees agree to provide $72,366,000, as proposed 
by the Senate, for an increase in the Basic Allowance for 
Quarters, to be effective January 1, 1996.

                           ACTIVE END STRENGTH                          
                           [Fiscal year 1996]                           
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
Army.............................      495,000      495,000  ...........
Navy.............................      428,000      428,340         +340
Marine Corps.....................      174,000      174,000  ...........
Air Force........................      388,200      388,200  ...........
                                  --------------------------------------
      Total......................    1,485,200    1,485,540         +340
------------------------------------------------------------------------

                        Military Personnel, Army

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

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Provide Comfort/Enhanced Southern                                       
 Watch...........................        3,600  ...........        3,600
Overseas Station Allowance.......      139,000       32,000       61,000
Selective Reenlistment Bonus.....       -1,200  ...........  ...........
Basic Allowance for Quarters.....       12,000       23,179       23,179
Variable Housing Allowance.......        9,800  ...........  ...........
                                  --------------------------------------
      Total, Military Personnel,                                        
       Army......................     +163,200      +55,179      +87,779
------------------------------------------------------------------------

                        Military Personnel, Navy

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

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Aviation Continuation Pay........       -1,000  ...........       -1,000
Responsibility Pay...............       -1,146  ...........       -1,146
Provide Comfort/Enhanced Southern                                       
 Watch...........................       25,500  ...........       25,500
Overseas Station Allowance.......       45,000       32,000       24,000
Selective Reenlistment Bonus.....      -25,000  ...........  ...........
Basic Allowance for Quarters.....       11,600       16,600       16,600
Variable Housing Allowance.......       20,800  ...........  ...........
P-3 Squadron.....................  ...........  ...........       14,000
                                  --------------------------------------
      Total, Military Personnel,                                        
       Navy......................      +75,754      +48,600      +77,954
------------------------------------------------------------------------

                    Military Personnel, Marine Corps

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

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Aviation Continuation Pay........         -200  ...........         -200
Provide Comfort/Enhanced Southern                                       
 Watch...........................        3,400  ...........        3,400
Overseas Station Allowance.......       43,000        4,000  ...........
Selective Reenlistment Bonus.....       -4,000  ...........  ...........
Basic Allowance for Quarters.....        3,200        4,800        4,800
Variable Housing Allowance.......        5,200  ...........  ...........
                                  --------------------------------------
      Total, Military Personnel,                                        
       Marine Corps..............      +50,600       +8,800       +8,000
------------------------------------------------------------------------

                     Military Personnel, Air Force

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

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Aviation Continuation Pay........       -4,400  ...........       -4,400
Aviation Career Incentive Pay....         -800  ...........         -800
Flight Duty Pay..................         -500  ...........         -500
Provide Comfort/Enhanced Southern                                       
 Watch...........................       45,000  ...........       45,000
Overseas Station Allowance.......       73,000       32,000       44,000
Selective Reenlistment Bonus.....      -12,000  ...........  ...........
Basic Allowance for Quarters.....       11,000       16,323       16,323
Variable Housing Allowance.......       10,200  ...........  ...........
B-52 Force Structure.............       65,000  ...........  ...........
                                  --------------------------------------
      Total, Military Personnel,                                        
       Air Force.................     +186,500      +48,323      +99,323
------------------------------------------------------------------------

                   National Guard and Reserve Forces

      The conferees agree to provide $9,142,775,000 in Reserve 
personnel appropriations, $8,815,232,000 in Operation and 
maintenance appropriations, and $777,000,000 in the National 
Guard and Reserve Equipment appropriation. These funds support 
a Selected Reserve strength of 930,342 as shown below.

                            RESERVE STRENGTHS                           
                           [Fiscal year 1995]                           
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
Selected Reserve:................                                       
    Army Reserve.................      230,000      230,000  ...........
    Navy Reserve.................       98,608       98,877         +269
    Marine Corps Reserve.........       42,000       42,000  ...........
    Air Force Reserve............       73,969       74,007          +38
    Army National Guard..........      373,000      373,000  ...........
    Air National Guard...........      109,458      112,458       +3,000
                                  --------------------------------------
      Total......................      927,035      930,342       +3,307
AGR/TARS:........................                                       
    Army Reserve.................       11,575       11,575  ...........
    Navy Reserve.................       17,490       17,605         +115
    Marine Corps Reserve.........        2,285        2,559         +274
    Air Force Reserve............          628          628  ...........
    Army National Guard..........       23,390       23,390  ...........
    Air National Guard...........        9,817       10,066         +249
                                  --------------------------------------
      Total......................       65,185       65,823         +638
Technicians:.....................                                       
    Army Reserve.................        6,409        6,630         +221
    Air Force Reserve............        9,467        9,802         +335
    Army National Guard..........       25,094       25,500         +406
    Air National Guard...........       22,558       23,399         +841
                                  --------------------------------------
      Total......................       63,528       65,331       +1,803
------------------------------------------------------------------------

                    military (civilian) technicians

      The conferees recommend an increase of $40,500,000 in the 
Operation and Maintenance accounts of the Army Reserve, Air 
Force Reserve, Army National Guard, and Air National Guard for 
additional military (civilian) technicians. The conferees 
remain concerned about the significant reduction to military 
technicians contained in the President's budget request and 
expect these funds to not be used for any other purpose without 
a prior approval reprogramming being submitted through normal 
channels. Additionally, the conferees direct the Department to 
provide the required number of workyears needed to sustain the 
levels of military (civilian) technicians as provided in this 
Act. The conferees also include a general provision (Section 
8087) which prohibits reducing the full-time support levels for 
technicians unless such technicians are a result of a reduction 
in military force structure. The conferees expect the 
Department to follow the intent of this provision.

                        Reserve Personnel, Army

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

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Unit Readiness/Training..........       20,000  ...........       20,000
Basic Allowance for Quarters.....          500        1,100        1,100
Variable Housing Allowance.......          700  ...........  ...........
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Army......................      +21,200       +1,100      +21,100
------------------------------------------------------------------------

                        Reserve Personnel, Navy

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

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Basic Allowance for Quarters.....          700        1,100        1,100
Variable Housing Allowance.......        1,100  ...........  ...........
P-3 Squadron.....................  ...........  ...........        6,200
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Navy......................       +1,800       +1,100       +7,300
------------------------------------------------------------------------

                    Reserve Personnel, Marine Corps

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

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Annual Training/School Tours.....        4,000  ...........        4,000
Basic Allowance for Quarters.....          150        2,800        2,800
Variable Housing Allowance.......          200  ...........  ...........
Increase of Active Reservists....  ...........  ...........        9,600
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Marine Corps..............       +4,350       +2,800      +16,400
------------------------------------------------------------------------

                      Reserve Personnel, Air Force

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

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
WC-130 Weather Reconn............          725  ...........          725
Basic Allowance for Quarters.....          100        1,100        1,100
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Air Force.................         +825       +1,100       +1,825
------------------------------------------------------------------------

                     National Guard Personnel, Army

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

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
School/Special Training..........       20,000  ...........       20,000
Basic Allowance for Quarters.....        1,300        4,164        4,164
Variable Housing Allowance.......        1,300  ...........  ...........
                                  --------------------------------------
      Total, National Guard                                             
       Personnel, Army...........       22,600        4,164       24,164
------------------------------------------------------------------------

                  National Guard Personnel, Air Force

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

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Tanker Task Force/1st Air Force..        7,200  ...........  ...........
Basic Allowance for Quarters.....          500        1,200        1,200
Variable Housing Allowance.......          700  ...........  ...........
Fighter Force Structure..........  ...........       12,000       12,000
                                  --------------------------------------
      Total, National Guard                                             
       Personnel, Air Force......        8,400       13,200       13,200
------------------------------------------------------------------------

                 support of the u.s. antarctic program

      The conferees agree to continue the Department of Defense 
support to the U.S. Antarctic Program. However, in light of the 
Congressional requirement for the National Science and 
Technology Council to undertake a Government-wide policy review 
of DoD's role in the Antarctic program no later than March 31, 
1996, future Defense involvement in this mission will be 
reassessed after receipt of that report. The conferees believe 
that Air National Guard participation in this project is 
predicated only on full reimbursement by the National Science 
Foundation and shall not conflict with any other Air National 
Guard mission.

                  TITLE II--OPERATION AND MAINTENANCE

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
RECAPITULATION         50000                                                                                    
O & M, ARMY.........................      18,134,736      18,996,131      17,947,229      18,321,965            
    TRANSFER--STOCKPILE / DBOF......        (50,000)        (50,000)        (50,000)        (50,000)            
 O & M, NAVY........................      21,175,710      20,846,710      21,195,301      21,279,425            
    TRANSFER--STOCKPILE / DBOF......        (50,000)        (50,000)        (50,000)        (50,000)            
O & M, MARINE CORPS.................       2,269,722       2,508,822       2,341,737       2,392,522            
O & M, AIR FORCE....................      18,206,597      18,873,793      18,202,437      18,561,267            
    TRANSFER--STOCKPILE / DBOF......        (50,000)        (50,000)        (50,000)        (50,000)            
O & M, DEFENSEWIDE..................      10,366,782       9,908,810       9,904,068      10,388,595            
O & M, ARMY RESERVE.................       1,068,591       1,119,191       1,068,312       1,119,191            
O & M, NAVY RESERVE.................         826,042         841,565         826,042         859,542            
O & M, MARINE CORPS RESERVE.........          90,283         102,079          90,283         100,283            
O & M, AIR FORCE RESERVE............       1,485,947       1,519,287       1,485,947       1,519,287            
O & M, ARMY NATIONAL GUARD..........       2,304,108       2,334,487       2,361,708       2,440,808            
O & M, AIR NATIONAL GUARD...........       2,712,221       2,737,221       2,724,021       2,776,121            
NATL BOARD FOR THE PROMOTON OF RIFLE                                                                            
 PRACTICE, ARMY.....................  ..............  ..............  ..............  ..............            
COURT OF MILITARY APPEALS, DEFENSE..           6,521           6,521           6,521           6,521            
ENVIRONMENTAL RESTORATION, DEFENSE..       1,622,200       1,422,200       1,487,000       1,422,200            
SUMMER OLYMPICS.....................          15,000          15,000          15,000          15,000            
SPECIAL OLYMPICS....................  ..............  ..............  ..............  ..............            
HUMANITARIAN ASSISTANCE.............          79,790  ..............          60,000  ..............            
FORMER SOVIET UNION THREAT REDUCTION         371,000         200,000         325,000         300,000            
CONTRIBUTIONS FOR INTERNATONAL                                                                                  
 PEACEKEEPING AND PEACE                                                                                         
  ENFORCEMENT ACTIVITIES FUND.......          65,000  ..............  ..............  ..............            
OVERSEAS HUMANITARIAN, DISASTER, AND                                                                            
 CIVIC AID..........................  ..............          50,000  ..............          50,000            
                                                     -----------------------------------------------------------
      GRAND TOTAL, O & M............      80,800,250      81,483,817      79,940,606      81,552,727            
        TRANSFER....................       (150,000)       (150,000)       (150,000)       (150,000)            
                                                     -----------------------------------------------------------
          TOTAL FUNDS AVAILABLE, O &                                                                            
           M........................      80,950,250      81,633,817      80,090,606      81,702,727            
----------------------------------------------------------------------------------------------------------------

              budget justification and execution materials

      The conferees are encouraged by the steps the Department 
has taken too improve the Operation and maintenance program 
justification materials submitted to the Congress. In order to 
further these efforts, the conferees direct the Department to:
            provide the Committees on Appropriations quarterly 
        budget execution reports for all Operation and 
        maintenance accounts for fiscal year 1996. These 
        reports should reflect the O-1 categories used in the 
        budget justification materials. Reports should be 
        submitted within 60 days of the end of the quarter to 
        which they apply, concurrently to the Office of 
        Management and Budget;
            provide the Committees on Appropriations quarterly 
        reports describing the execution of real property 
        maintenance programs. These reports should describe 
        those activities specifically and/or generally 
        described by the Congress and should separately 
        identify activity related to barracks renovation. Real 
        Property Maintenance is designated an item of 
        congressional interest; transfers from real property 
        maintenance programs to other activities are subject to 
        prior-notification reprogramming procedures.
      The conferees agree that proposed transfers of funds 
between O-1 budget activity funding categories in excess of 
$20,000,000 are subject to normal reprogramming procedures. In 
addition, due to continuing concerns about force readiness and 
the possible diversion of Operation and maintenance funds, the 
conferees agree that the Department should provide written 
notification to the congressional defense committees prior to 
transfers in excess of $20,000,000 from the following 
subactivity group categories:
O&M, Army
      Operating forces: Combat units; Tactical support; Force 
related training/special activities; Depot maintenance.
O&M, Navy
      Operating forces: Mission and other flight operations; 
Aircraft depot maintenance; Mission and other ship operations; 
Ship depot maintenance.
O&M, Marine Corps
      Operating forces: Operational forces
O&M, Air Force
      Operating forces: Primary combat forces; Primary combat 
weapons; Air operations training. Mobilization: Airlift 
operations.

                          financial management

      The conferees are concerned about the state of financial 
management in the Department of Defense and the measures that 
may be taken to improve upon past performance. Both the House 
and Senate reports on the fiscal year 1996 Department of 
Defense Appropriations Bill recommended several items for the 
Department's consideration. These items should be merged into a 
single report due to the Committees on Appropriations not later 
than May 31, 1996. The DoD report should address the following 
issues:
            the state of Defense Finance and Accounting Service 
        (DFAS) consolidation and future reorganization plans. 
        Of specific interest are DoD plans concerning 
        establishment of 20 DFAS operating locations;
            opportunities for utilizing private sector 
        financial services to meet non-unique departmental 
        requirements such as travel processing, payroll and 
        contract disbursements;
            procedureal changes designed to improve DoD 
        performance in the areas of unmatched disbursements and 
        negative unliquidated obligations;
            the estimated resource requirements to achieve long 
        term improvements of DoD financial management 
        procedures and systems.

                       Real Property Maintenance

      The conferees agree with the Senate in providing an 
additional $322,000,000 for barracks renovation. The conferees 
have provided a total increase of $700,000,000 to the Real 
Property Maintenance account.

------------------------------------------------------------------------
                                                                Total   
                                     Barracks    Other RPM    additional
                                    renovation                   RPM    
------------------------------------------------------------------------
Army.............................      100,000       67,000      167,000
Navy.............................      100,000       55,000      155,000
Air Force........................      100,000       51,000      151,000
Marine Corps.....................       22,000       38,000       60,000
Army National Guard..............  ...........      100,000      100,000
Army Reserve.....................  ...........       17,000       17,000
Navy Reserve.....................  ...........       20,000       20,000
Marine Corps Reserve.............  ...........        1,500        1,500
Air National Guard...............  ...........       15,000       15,000
Air Force Reserve................  ...........       13,500       13,500
                                  --------------------------------------
      Total......................      322,000      378,000      700,000
------------------------------------------------------------------------

                           security programs

      The conferees agree to reduce the military department's 
security program accounts and the On-Site Inspection Agency. In 
order to meet emergent requirements stemming from valid treaty 
obligations, the conferees expect the Department of Defense to 
submit a reprogramming request subject to normal, prior 
approval reprogramming procedures.

                      transportation improvements

      The conferees agree that the Department of Defense should 
be able to improve the efficiency of the transportation 
organizations and infrastructure under the control of the U.S. 
Transportation Command (USTRANSCOM). The conferees direct that 
the Department of Defense report to the congressional defense 
committees not later than March 31, 1996, on measure that will 
be taken to achieve improvements in this area.

             international military training and education

      The conferees express their continued support for the 
International Military Education and Training Program. The 
conferees note however that this program is funded within 
international affairs programs and is properly within the 
jurisdiction of the Subcommittees on Foreign Operations. 
Therefore, the conferees direct that no funds appropriated in 
this act be used for foreign operations costs associated with 
the International Military Education and Training program.

                    defense commissary access policy

      The conferees direct a report be made by the General 
Accounting Office to the Committee on Appropriations of the 
Senate and the House of Representatives on any changes in DoD 
commissary access policy, including providing reservists new or 
additional privileges, and addressing any resulting financial 
impact on the commissaries.

       military traffic management command reengineering program

      The conferees direct the Department of Defense to provide 
a report on its pilot program to implement commercial business 
practices and standards of service for its movement of military 
household goods, to the congressional defense committees by 
March 1, 1997. This report should fully assess how the pilot 
program impacts the government's transportation costs as 
compared to the current program. The conferees expect the 
Department to fairly evaluate the present program as modified 
by the removal of government unique terms, conditions and 
regulations and using simplified procedures. This analysis 
shall determine whether the proposed reengineering of the 
current program is economically justified, can achieve a higher 
level of service and lower claims frequency.
      In addition, the conferees direct the Department to 
report by January 1, 1996, prior to the implementation of any 
element of the pilot program, on its impact on small businesses 
resulting from, but not limited to, the application of the 
Federal Acquisition Regulations, and the requirement of any 
program elements that are not standard commercial business 
practices.

                  TITLE II--OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY                                                                                 
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
LAND FORCES              200                                                                                    
COMBAT UNITS........................       1,882,069       1,882,069       1,882,069       1,882,069            
TACTICAL SUPPORT....................       1,165,970       1,165,970       1,165,970       1,165,970            
THEATER DEFENSE FORCES..............         178,670         178,670         178,670         178,670            
FORCE RELATED TRAINING/SPECIAL                                                                                  
 ACTIVITIES.........................       1,271,154       1,271,154       1,285,154       1,271,154            
FORCE COMMUNICATIONS................          73,584          73,584          73,584          73,584            
DEPOT MAINTENANCE...................         861,426       1,065,426         890,426         950,696            
JCS EXERCISES.......................          54,467          54,467          54,467          54,467            
BASE SUPPORT........................       3,582,306       3,612,306       3,618,129       3,612,306            
LAND OPERATIONS SUPPORT  700                                                                                    
COMBAT DEVELOPMENTS.................         214,364         214,364         214,364         214,364            
UNIFIED COMMANDS....................          36,937          36,937          36,937          36,937            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       9,320,947       9,554,947       9,399,770       9,440,217            
                                                     ===========================================================
BUDGET ACTIVITY 2: MOBILIZATION                                                                                 
MOBILITY OPERATIONS     1000                                                                                    
POMCUS..............................          86,830          86,830          86,830          86,830            
STRATEGIC MOBILIZATION..............         393,923         482,923         388,923         423,923            
WAR RESERVE ACTIVITIES..............          72,166          72,166          72,166          72,166            
INDUSTRIAL PREPAREDNESS.............         143,841         143,841         143,841         143,841            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2......         696,760         785,760         691,760         726,760            
                                                     ===========================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
ACCESSION TRAINING      1400                                                                                    
OFFICER ACQUISITION.................          58,328          58,328          58,328          58,328            
RECRUIT TRAINING....................          11,228          11,228          11,228          11,228            
ONE STATION UNIT TRAINING...........          17,008          17,008          17,008          17,008            
RESERVE OFFICER TRAINING CORPS                                                                                  
 (ROTC).............................         109,789         109,789         109,789         109,789            
BASE SUPPORT (ACADEMY ONLY).........         118,445         118,445         118,445         118,445            
  BASIC SKILL/ADVANCE TRAINING                                                                                  
SPECIALIZED SKILL TRAINING..........         236,760         302,760         260,760         281,760            
FLIGHT TRAINING.....................         218,514         218,514         218,514         218,514            
PROFESSIONAL DEVELOPMENT EDUCATION..          68,981          68,981          68,981          68,981            
TRAINING SUPPORT....................         375,528         375,528         375,528         375,528            
BASE SUPPORT (OTHER TRAINING).......       1,160,360       1,160,360       1,171,960       1,160,360            
  RECRUITING/OTHER TRAINING0                                                                                    
RECRUITING AND ADVERTISING..........         211,375         217,875         216,375         216,375            
EXAMINING...........................          64,333          64,333          64,333          64,333            
OFF-DUTY AND VOLUNTARY EDUCATION....         103,812         103,812         103,812         103,812            
CIVILIAN EDUCATION AND TRAINING.....          81,108          81,108          81,108          81,108            
JUNIOR ROTC.........................          74,506          74,506          74,506          74,506            
BASE SUPPORT (RECRUITING LEASES)....         156,020         156,020         156,020         156,020            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3......       3,066,095       3,138,595       3,106,695       3,116,095            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &50                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
SECURITY PROGRAMS       2600                                                                                    
SECURITY PROGRAMS...................         362,333         362,333         356,333         356,333            
  LOGISTICS OPERATIONS  2700                                                                                    
SERVICEWIDE TRANSPORTATION..........         542,910         542,910         542,910         542,910            
CENTRAL SUPPLY ACTIVITIES...........         487,281         475,281         487,281         491,031            
LOGISTIC SUPPORT ACTIVITIES.........         299,230         299,230         299,230         299,230            
AMMUNITION MANAGEMENT...............         300,853         300,853         300,853         300,853            
  SERVICEWIDE SUPPORT   3000                                                                                    
ADMINISTRATION......................         275,238         265,238         275,588         275,588            
SERVICEWIDE COMMUNICATIONS..........         686,446         686,446         686,446         686,446            
MANPOWER MANAGEMENT.................         124,676         124,676         124,676         124,676            
OTHER PERSONNEL SUPPORT.............         175,832         169,832         175,832         172,832            
OTHER SERVICE SUPPORT...............         568,225         568,225         571,225         571,225            
ARMY CLAIMS ACTIVITIES..............         173,290         173,290         173,290         173,290            
REAL ESTATE MANAGEMENT..............          86,930          86,930          86,930          86,930            
BASE SUPPORT........................         735,466         759,566         752,816         735,466            
PENTAGON RENOVATION TRANSFER........  ..............  ..............         -44,130         -44,130            
SUPPORT OF OTHER NATIONS3550                                                                                    
INTERNATIONAL MILITARY HEADQUARTERS.         252,778         252,778         252,778         252,778            
MISC SUPPORT OF OTHER NATIONS.......          29,446          29,446          29,446          29,446            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......       5,100,934       5,097,034       5,071,504       5,054,904            
                                                     ===========================================================
CLASSIFIED PROGRAMS UNDISTRIBUTED...  ..............           3,589          -1,800           4,089            
CIVILIAN PERSONNEL UNDERSTRENGTH....  ..............         -65,000         -67,000         -67,000            
FAMILY HOUSING SURVEY & DEFICIT                                                                                 
 REDUCTION PROGRAM..................  ..............  ..............           3,500           3,500            
GENERAL REDUCTION, NATIONAL DEFENSE                                                                             
 STOCKPILE FUND.....................         -50,000         -50,000         -50,000         -50,000            
REAL PROPERTY MAINTENANCE...........  ..............         350,000  ..............         167,000            
FOREIGN CURRENCY FLUCTUATION........  ..............         173,300  ..............          59,300            
EDCARS/DSREDS.......................  ..............           2,000  ..............           2,000            
PRINTING EFFICIENCIES...............  ..............          -3,000          -3,000          -3,000            
INSPECTOR GENERAL CONSOLIDATION.....  ..............         -12,500  ..............         -12,500            
REDUCED AUDITS......................  ..............         -10,000         -10,000         -10,000            
TRANSPORTATION IMPROVEMENTS.........  ..............         -26,200         -26,200         -26,200            
ADMINISTRATIVE TRAVEL SAVINGS.......  ..............  ..............         -17,500         -28,500            
BARRACKS RENOVATION INITIATIVES.....  ..............  ..............         100,000  ..............            
AAFES 2ND DESTINATION TRANSPORTATION  ..............         -17,500         -17,500         -17,500            
PROVIDE COMFORT/ENHANCED SOUTHERN                                                                               
 WATCH..............................  ..............          87,300  ..............          87,300            
SUPPLY MANAGEMENT REFORMS...........  ..............          -8,500  ..............          -8,500            
CIVILIAN PAY........................  ..............  ..............        -233,000        -116,000            
OPERATIONAL SUPPORT AIRLIFT.........  ..............          -1,694  ..............  ..............            
                                                     ===========================================================
      TOTAL, OPERATION AND80                                                                                    
       MAINTENANCE, ARMY............      18,134,736      18,998,131      17,947,229      18,321,965            
TRANSFER............................        (50,000)        (50,000)        (50,000)        (50,000)            
                                                     -----------------------------------------------------------
      TOTAL FUNDING AVAILABLE.......    (18,184,736)    (19,048,131)    (17,997,229)    (18,371,965)            
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

      Budget Activity 1: Operating Forces:
    500 Communications/Electronics Maintenance................   39,000 
    500 Other Depot Maintenance...............................   66,000 
    500 Depot Maintenance Logistics Tail......................  (15,730)
    600 NTC Interim Airhead...................................    2,000 
    600 Base Operations Support...............................   28,000 
      Budget Activity 2: Mobilization:
    1100 Prepositioning Ships.................................   (5,000)
    1100 Prepositioned Materiel, S.W. Asia....................   16,000 
    1100 Prepositioned Materiel, Korea........................   19,000 
      Budget Activity 3: Training and Recruiting:
    1800 TNET.................................................    4,000 
    1800 Chemical/Biological Defense Training.................   20,000 
    1800 Simulation Enhancements..............................   21,000 
    2150 Recruiting and Advertising...........................    5,000 
      Budget Activity 4: Administration and Servicewide 
Activities:
    2650 Security Programs (Arms Control).....................   (6,000)
    2800 Acquisition Reform...................................  (12,000)
    2800 Depot Maintenance Logistics Tail.....................   15,750 
    3050 Waste Water Treatment Planning.......................      350 
    3200 Personnel Management Efficiencies....................   (3,000)
    3250 Conservation and Ecosystem Management................    3,000 
    3500 Pentagon Renovation Transfer.........................  (44,130)
      Other Adjustments:
    3810 Civilian Underexecution..............................  (67,000)
    3830 Family Housing Survey/Deficit Reduction Program......    3,500 
    3880 Foreign Currency.....................................   59,300 
    3970 Inspector General Consolidation......................  (12,500)
    3982 Administrative Travel Savings/Executive Transport....  (28,500)
    4000 Provide Comfort/Enhanced Southern Watch..............   87,300 
    4010 Supply Management Reform.............................   (8,500)
    4040 Civilian Personnel Pay............................... (116,000)

                  conventional ammunition maintenance

      The conferees direct that of the funds provided for 
conventional ammunition care and maintenance, the Army shall 
expend not less than $300,853,000 for this purpose.

                            national presto

      The conferees direct that not less than $15,000,000 be 
made available in the ``Operation and Maintenance, Army'' 
account only for the remediation of environmental contamination 
at the National Presto Industries, Inc. site in Eau Claire, 
Wisconsin. These funds are to be made available only for the 
implementation and execution of the 1988 agreement between the 
Department of the Army and National Presto Industries, Inc., 
within sixty days of the enactment of this Act and without 
being made subject to any studies, reports or other pre-
conditions that would in any way delay or obstruct the 
obligation and disbursal of the funds. The conferees are 
satisfied that sufficient studies of this matter already have 
been done.

                   life sciences equipment laboratory

      The conferees direct that the Army shall make available 
$500,000 to the Life Sciences Equipment Laboratory at Kelly 
AFB, Texas, for work in support of the Joint Task Force--Full 
Accounting.

                   fort wainwright emergency repairs

      The conferees agree to provide $8,000,000 of available 
funds, for emergency repairs for the Fort Wainwright Central 
Heat and Power Plant.

               contractor-operated parts stores (copars)

      The conferees are concerned by the issues raised in a 
recent GAO study of the COPARS program questioning the 
methodology used by certain military commanders to justify the 
use of alternative approaches. The conferees direct the 
services to suspend all efforts directed toward the elimination 
of COPARS unless and until economic analyses are approved that 
clearly show other alternatives to be more cost-effective. Such 
economic analyses must compare like items of cost (including 
labor and overhead costs of any COPARS alternative) and must 
fully address the concerns about earlier analyses cited in the 
GAO report. To ensure the fairness and objectivity of any such 
analysis, the conferees direct the Secretary to designate a 
single point of contact within the Office of the Secretary of 
Defense for approval of study methodology and any final 
recommendations.

                    Operation and Maintenance, Navy

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
Operation and maintenance, Navy                                                                                 
Budget Activity 1: Operating forces                                                                             
Air operations          4250                                                                                    
  Mission and other flight00                                                                                    
 operations                                1,788,301       1,788,301       1,788,301       1,796,301            
  Fleet air training    4350                 627,871         627,871         642,166         642,166            
  Intermediate maintenance00                  68,070          68,070          68,070          68,070            
  Air operations and safety support           59,060          59,060          59,060          59,060            
  Aircraft depot maintenance                 489,443         539,443         489,443         514,443            
  Aircraft depot operations support           28,232          28,232          28,232          28,232            
  Base support          4600               1,205,651       1,233,151       1,217,651       1,205,651            
Ship operations         4700                                                                                    
  Mission and other ship operations        1,885,234       1,885,234       1,885,234       1,885,234            
  Ship operational support and                                                                                  
 training                                    462,396         462,396         462,396         462,396            
  Intermediate maintenance50                 401,812         401,812         401,812         401,812            
  Ship depot maintenance4900               2,261,190       2,331,190       2,411,190       2,411,190            
  Ship depot operations support              758,320         758,320         758,320         758,320            
  Base support          5000               1,110,058       1,137,558       1,121,058       1,110,058            
Combat operations/support100                                                                                    
  Combat communications 5150                 198,415         198,415         198,415         198,415            
  Electronic warfare    5200                   7,396           7,396           7,396           7,396            
  Space systems and surveillance             153,881         153,881         153,881         153,881            
  Warfare tactics       5300                 138,256         138,256         138,256         138,256            
  Operational meteorology and                                                                                   
 oceanography                                198,719         198,719         198,719         198,719            
  Combat support forces 5400                 339,888         339,888         339,888         339,888            
  Equipment maintenance 5450                 145,820         145,820         145,820         145,820            
  Depot operations support00                   1,127           1,127           1,127           1,127            
  Base support          5550                 398,298         398,298         402,278         398,298            
Weapons support         5650                                                                                    
  Cruise missile        5700                  96,656          96,656          96,656          96,656            
  Fleet ballistic missile750                 788,463         788,463         788,463         788,463            
  In-service weapons systems support          25,945          25,945          25,945          25,945            
  Weapons maintenance   5850                 401,879         411,879         401,879         406,879            
  Base support          5900                 111,176         111,176         112,286         111,176            
  DBOF support          6000                 695,100  ..............         695,100         595,100            
                                                     -----------------------------------------------------------
      Total, budget activity 1......      14,846,657      14,336,557      15,039,042      14,948,952            
                                                     ===========================================================
Budget activity 2: Mobilization                                                                                 
Ready reserve and prepositioning                                                                                
 forces                                                                                                         
  Ship prepositioning and surge              511,034         511,034         511,034         511,034            
Activations/inactivations350                                                                                    
  Aircraft activations/inactivations           7,215           7,215           7,215           7,215            
  Ship activations/inactivations             472,386         472,386         472,386         472,386            
Mobilization preparedness550                                                                                    
  Fleet hospital program6600                  16,162          16,162          16,162          16,162            
  Industrial readiness  6650                   1,917           1,917           1,917           1,917            
  Coast Guard support   6700                  21,514          21,514          21,514          21,514            
                                                     -----------------------------------------------------------
      Total, budget activity 2......       1,030,228       1,030,228       1,030,228       1,030,228            
                                                     ===========================================================
Budget activity 3: Training and                                                                                 
 recruiting                                                                                                     
Accession training      6900                                                                                    
  Officer acquisition   6950                  66,755          66,755          66,755          66,755            
  Recruit training      7000                   4,667           4,667           4,667           4,667            
  Reserve Officers Training Corps                                                                               
 (ROTC)                                       64,836          64,836          64,836          64,836            
  Base support          7100                 112,811         112,811         113,311         112,811            
Basic skills and advanced training                                                                              
  Specialized skill training                 212,121         222,121         222,121         222,121            
  Flight training       7300                 273,004         273,004         273,004         273,004            
  Professional development education          61,214          61,214          61,214          61,214            
  Training support      7400                 125,237         125,237         125,237         125,237            
  Base support          7450                 415,830         415,830         419,980         415,830            
Recruiting, and other training and                                                                              
 education                                                                                                      
  Recruiting and advertising                 122,820         128,820         127,820         127,820            
  Off-duty and voluntary education            54,970          54,970          54,970          54,970            
  Civilian education and training             22,223          22,223          22,223          22,223            
  Junior ROTC           7750                  24,382          24,382          24,382          24,382            
  Base support          7800                     822             822             822             822            
                                                     -----------------------------------------------------------
      Total, budget activity 3......       1,561,692       1,577,692       1,581,342       1,576,692            
                                                     ===========================================================
Budget activity 4: Admin &50                                                                                    
 servicewide activities                                                                                         
Servicewide support     8000                                                                                    
Administration          8050                 605,287         595,287         605,287         605,287            
  External relations    8100                  21,684          21,684          21,684          21,684            
  Civilian manpower and person                                                                                  
 management                                   63,166          59,166          59,166          61,166            
  Military manpower and person                                                                                  
 management                                  139,864         139,864         139,864         139,864            
  Other personnel support250                 395,629         414,229         405,629         395,629            
  Servicewide communications                 261,463         261,463         288,463         288,463            
  Base support          8350                 271,900         271,900         274,600         271,900            
Logistics operations and technical                                                                              
 support                                                                                                        
  Servicewide transportation                 147,132         147,132         147,132         147,132            
  Planning, engineering and design           249,620         249,620         249,620         249,620            
  Acquisition and program management         426,404         409,404         426,404         412,904            
  Air systems support   8700                 302,011         302,011         302,011         302,011            
  Hull, mechanical and electrical                                                                               
 support                                      60,022          60,022          60,022          60,022            
  Combat/weapons systems8800                  41,632          51,632          41,632          51,632            
  Space and electronic warfare                                                                                  
 systems                                      68,111          68,111          68,111          68,111            
  Base support          8900                 158,334         158,334         158,334         158,334            
  Pentagon renovation transfer        ..............  ..............         -33,330         -33,330            
Security programs       9000                                                                                    
  Security Programs     9050                 556,805         556,805         549,805         549,805            
  Base support          9100                  10,674          10,674          10,780          10,674            
Support of other nations9150                                                                                    
  International headquarters and                                                                                
 agencies                                      7,395           7,395           7,395           7,395            
                                                     -----------------------------------------------------------
      Total, budget activity 4......       3,787,133       3,784,733       3,784,189       3,768,303            
                                                     ===========================================================
  Classified programs undistributed   ..............           1,000           5,000           1,150            
  Civilian pay          9280          ..............  ..............         -12,800  ..............            
  NSIPS                 9310          ..............           9,000  ..............           9,000            
General reduction, national defense                                                                             
 stockpile fund                              -50,000         -50,000         -50,000         -50,000            
  Real property maintenance0          ..............         150,000  ..............         155,000            
  Foreign currency fluctuation        ..............          31,900  ..............           5,000            
  Barracks renovation initiative      ..............  ..............         100,000  ..............            
  Administrative travel savings       ..............  ..............         -17,500         -28,500            
  Printing efficiencies 9400          ..............          -4,000          -4,000          -4,000            
  Inspector General consolidation     ..............         -20,000  ..............         -20,000            
  Reduced audits        9420          ..............         -10,000         -10,000         -10,000            
  Transportation improvements         ..............          -7,200          -7,200          -7,200            
  Bulk fuel requirements reduction    ..............  ..............        -200,000        -100,000            
  Nexcom 2nd destination9460                                                                                    
 transportation                       ..............          -7,500  ..............          -7,500            
  Civilian understrength9470          ..............          -5,000         -33,000         -17,000            
  Provide comfort/enhanced southern                                                                             
 watch                                ..............          75,300  ..............          75,300            
  Tomahawk missile recertification    ..............          -9,000  ..............          -9,000            
  Supply management reforms0          ..............         -37,000  ..............         -37,000            
                                                     ===========================================================
      Total, operation and80                                                                                    
       maintenance, Navy............      21,175,710      20,846,710      21,195,301      21,279,425            
          Transfer..................        (50,000)        (50,000)        (50,000)        (50,000)            
                                                     -----------------------------------------------------------
      Total funding available.......    (21,225,710)    (20,896,710)    (21,245,301)    (21,329,425)            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

Budget Activity 1: Operating Forces:s of dollars]
    4300 P-3 Force Structure..................................     8,000
    4350 Pacific Missile Range Facility.......................    14,295
    4500 Aircraft Depot Maintenance...........................    25,000
    4900 Ship Depot Maintenance Availabilities................   150,000
    5850 Other Weapon Systems Maintenance.....................     5,000
    6000 DBOF Support......................................... (100,000)
Budget Activity 3: Training and Recruiting:
    7600 Recruiting and Advertising...........................     5,000
Budget Activity 4: Administration and Servicewide Activities:
    8150 Personnel Management Efficiencies....................   (2,000)
    8300 Challenge Athena.....................................    27,000
    8650 Acquisition Reform...................................  (17,000)
    8650 Reverse Osmosis Desalinators.........................     3,500
    8800 AN-UYQ-70............................................    10,000
    8950 Pentagon Renovation Transfer.........................  (33,330)
    9050 Security Programs (Arms Control).....................   (7,000)
Other Adjustments:
    9350 Foreign Currency.....................................     5,000
    9372 Administrative Travel Savings/Executive Transport....  (28,500)
    9410 Inspector General Consolidation......................  (20,000)
    9435 Bulk Fuel Reduction.................................. (100,000)
    9460 NexCom Second Destination Transportation.............   (7,500)
    9470 Civilian Underexecution..............................  (17,000)
    9480 Provide Comfort/Enhanced Southern Watch..............    75,300
    9485 Tomahawk Missile Recertification.....................   (9,000)
    9490 Supply Management Reforms............................  (37,000)

                      reverse osmosis desalinators

      The conferees agree to provide $3,500,000 under this 
heading for the purchase and repair and maintenance of reverse 
osmosis desalinators. Of this amount, $500,000 is directed to 
the repair and maintenance of existing Navy desalinators, 
$1,000,000 is directed for the procurement of new desalinators 
for the Navy, and the remaining $2,000,000 is directed to Navy 
procurement of desalinators in support of the Air Force.

                asia-pacific center for security studies

      In their respective bills, the House and Senate have each 
approved the budget request for the Asia-Pacific Center for 
Security Studies. The conferees note that the Center was 
dedicated by the Secretary of Defense in August of this year 
and it continues to receive strong support from the civilian 
and military leadership of the Defense Department and other 
nations. The conferees want to express their support for fully 
funding the requirements of the Center in 1996 and the future.

                               css hunley

      The House recedes from its report language regarding the 
CSS Hunley.

                Operation and Maintenance, Marine Corps

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, MARINE                                                                               
 CORPS                                                                                                          
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
EXPEDITIONARY FORCES    9750                                                                                    
OPERATIONAL FORCES..................         334,133         344,133         334,133         344,133            
FIELD LOGISTICS.....................         158,299         158,299         158,299         158,299            
DEPOT MAINTENANCE...................         148,574         173,574         148,574         158,574            
BASE SUPPORT........................         903,013         953,013         922,043         945,013            
USMC PREPOSITIONING    10050                                                                                    
MARITIME PREPOSITIONING.............          77,416          77,416          96,416          77,416            
NORWAY PREPOSITIONING...............           8,019           8,019           4,019           5,919            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       1,629,454       1,714,454       1,663,484       1,689,354            
                                                     ===========================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
ACCESSION TRAINING     10350                                                                                    
RECRUIT TRAINING....................           7,343           7,343           7,343           7,343            
OFFICER ACQUISITION.................             268             268             268             268            
BASE SUPPORT........................          66,554          66,554          67,219          66,554            
BASIC SKILLS AND ADVANCED TRAINING                                                                              
SPECIALIZED SKILLS TRAINING.........          25,057          35,057          35,057          35,057            
FLIGHT TRAINING.....................             165             165             165             165            
PROFESSIONAL DEVELOPMENT EDUCATION..           5,792           5,792           5,792           5,792            
TRAINING SUPPORT....................          74,964          74,964          74,964          74,964            
BASE SUPPORT........................          69,791          69,791          75,481          69,791            
RECRUITING AND OTHER TRAINING                                                                                   
 EDUCATION                                                                                                      
RECRUITING AND ADVERTISING..........          61,037          66,037          65,037          65,037            
OFF-DUTY AND VOLUNTARY EDUCATION....          11,055          11,055          11,055          11,O55            
JUNIOR ROTC.........................           7,588           7,588           7,588           7,588            
BASE SUPPORT........................          13,496          13,496          13,626          13,496            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3......         343,110         358,110         363,595         357,110            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
SERVICEWIDE SUPPORT    11350                                                                                    
LOGISTICS SUPPORT...................          95,596          95,596          95,596          95,596            
SPECIAL SUPPORT.....................         131,023         139,823         131,023         131,023            
SERVICEWIDE TRANSPORTATION..........          31,931          31,931          31,931          31,931            
ADMINISTRATION......................          28,523          28,523          29,523          28,523            
BASE SUPPORT........................          10,085          10,085          10,185          10,085            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......         297,158         305,958         298,258         297,158            
                                                     ===========================================================
CLASSIFIED PROGRAMS.................  ..............  ..............           1,000             500            
REAL PROPERTY MAINTENANCE...........  ..............         100,000  ..............          60,000            
FOREIGN CURRENCY FLUCTUATION........  ..............           9,400  ..............           1,000            
INCLEMENT WEATHER GEAR..............  ..............          24,000  ..............  ..............            
TRANSPORTATION IMPROVEMENTS.........  ..............          -3,100          -3,100          -3,100            
BARRACKS RENOVATION INITIATIVES.....  ..............  ..............          22,000  ..............            
ADMINISTRATIVE TRAVEL SAVINGS.......  ..............  ..............          -3,500          -9,500            
                                                     ===========================================================
      TOTAL, O&M, MARINE CORPS......       2,269,722       2,508,822       2,341,737       2,392,522            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

Budget Activity 1: Operating Forces:s of dollars]
    9800    Operating Tempo...................................    10,000
    9900    Depot maintenance.................................    10,000
    9950    Initial Issue Equipment...........................    16,000
    9950    Personnel Support Equipment.......................    25,000
    9950    Training Range Environmental Assessment...........     1,000
    10150    Norway Prepositioning............................   (2,100)
Budget Activity 3: Training and Recruiting:
    11000    Recruiting and Advertising.......................     4,000
Other Adjustments:
    11750    Foreign Currency.................................     1,000
    11817    Administrative Travel Savings/Executive Transport   (9,500)

                  Operation and Maintenance, Air Force

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR FORCE                                                                            
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
AIR OPERATIONS         12200                                                                                    
PRIMARY COMBAT FORCES...............       2,684,913       2,829,413       2,664,913       2,713,913            
PRIMARY COMBAT WEAPONS..............         409,701         389,701         389,701         389,701            
COMBAT ENHANCEMENT FORCES...........         257,139         257,139         257,139         257,139            
AIR OPERATIONS TRAINING.............         647,570         652,470         650,570         655,470            
COMBAT COMMUNICATIONS...............         854,442         854,442         846,542         846,542            
BASE SUPPORT........................       2,407,212       2,456,212       2,431,282       2,407,212            
COMBAT RELATED OPERATIONS600                                                                                    
GLOBAL C3I AND EARLY WARNING........         826,526         834,726         826,526         830,526            
NAVIGATION/WEATHER SUPPORT..........         128,374         128,374         128,374         128,374            
OTHER COMBAT OPS SUPPORT PROGRAMS...         210,481         210,481         210,481         210,481            
JCS EXERCISES.......................          41,793          41,793          41,793          41,793            
MANAGEMENT/OPERATIONAL HEADQUARTERS.         111,914         111,914         111,914         111,914            
TACTICAL INTEL AND OTHER SPECIAL                                                                                
 ACTIVITIES.........................         190,613         190,613         190,613         190,613            
SPACE OPERATIONS       12950                                                                                    
LAUNCH FACILITIES...................         254,590         254,590         254,590         254,590            
LAUNCH VEHICLES.....................         117,482         117,482         117,482         117,482            
SPACE CONTROL SYSTEMS...............         341,862         341,862         341,862         341,862            
SATELLITE SYSTEMS...................          49,132          49,132          43,832          49,132            
OTHER SPACE OPERATIONS..............          79,989          79,989          79,989          79,989            
BASE SUPPORT........................         402,589         402,589         406,589         402,589            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......      10,016,322      10,202,922       9,994,192      10,029,322            
                                                     ===========================================================
BUDGET ACTIVITY 2: MOBILIZATION                                                                                 
MOBILITY OPERATIONS    13400                                                                                    
AIRLIFT OPERATIONS..................       1,544,785       1,526,785       1,524,785       1,533,785            
AIRLIFT OPERATIONS C3I..............          10,961          10,961          10,961          10,961            
MOBILIZATION PREPAREDNESS...........         160,110         160,110         160,110         160,110            
PAYMENTS TO TRANSPORTATION BUSINESS                                                                             
 AREA...............................         293,027         273,027         273,027         273,027            
BASE SUPPORT........................         514,490         514,490         519,590         514,490            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2......       2,523,373       2,485,373       2,488,473       2,492,373            
                                                     ===========================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
ACCESSION TRAINING     13800                                                                                    
OFFICER ACQUISITION.................          49,197          49,197          49,197          49,197            
RECRUIT TRAINING....................           3,881           3,881           3,881           3,881            
RESERVE OFFICER TRAINING CORPS                                                                                  
 (ROTC).............................          39,226          39,226          39,226          39,226            
BASE SUPPORT (ACADEMIES ONLY).......          91,666          91,666          91,666          91,666            
BASIC SKILLS AND ADVANCED TRAINING                                                                              
SPECIALIZED SKILL TRAINING..........         204,465         214,465         214,465         214,465            
FLIGHT TRAINING.....................         336,956         276,956         309,556         326,956            
PROFESSIONAL DEVELOPMENT EDUCATION..          78,688          78,688          78,688          78,688            
TRAINING SUPPORT....................          65,048          65,048          65,048          65,048            
BASE SUPPORT (OTHER TRAINING).......         545,451         545,451         550,851         545,451            
RECRUITING, AND OTHER TRAINING AND                                                                              
 EDUCATION                                                                                                      
RECRUITING AND ADVERTISING..........          44,827          50,827          49,827          49,827            
EXAMINING...........................           3,122           3,122           3,122           3,122            
OFF DUTY AND VOLUNTARY EDUCATION....          75,537          86,237          75,537          79,537            
CIVILIAN EDUCATION AND TRAINING.....          77,304          77,304          77,304          77,304            
JUNIOR ROTC.........................          25,392          25,392          25,392           25392            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3......       1,640,760       1,607,460       1,633,760       1,649,760            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &50                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
LOGISTICS OPERATIONS   14900                                                                                    
LOGISTICS OPERATIONS................         790,324         754,324         794,224         754,324            
TECHNICAL SUPPORT ACTIVITIES........         365,535         365,535         365,535         365,535            
SERVICEWIDE TRANSPORTATION..........         234,836         234,836         234,836         234,836            
BASE SUPPORT........................         889,348         889,348         913,648         889,448            
SERVICEWIDE ACTIVITIES 15200                                                                                    
ADMINISTRATION......................         118,319         102,819         118,319         112,819            
SERVICEWIDE COMMUNICATIONS..........         318,240         318,240         318,240         318,240            
PERSONNEL PROGRAMS..................          84,766          79,066          84,766          81,766            
RESCUE AND RECOVERY SERVICES........          40,426          44,826          40,426          44,826            
SUBSISTENCE-IN-KIND.................          48,429          48,429          48,429          48,429            
ARMS CONTROL........................          34,645          34,645          34,645          34,645            
OTHER SERVICEWIDE ACTIVITIES........         396,155         396,155         396,155         396,155            
OTHER PERSONNEL SUPPORT.............          32,080          32,080          32,080          32,080            
CIVIL AIR PATROL CORPORATION........          14,704          15,804          16,704          16,704            
BASE SUPPORT........................         248,095         270,295         254,595         248,095            
PENTAGON RENOVATION TRANSFER........  ..............  ..............         -32,730         -32,730            
SECURITY PROGRAMS      15800                                                                                    
SECURITY PROGRAMS...................         447,218         447,218         439,218         439,218            
SUPPORT TO OTHER NATIONS5900                                                                                    
INTERNATIONAL SUPPORT...............          13,022          13,022          13,022          13,022            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......       4,076,142       4,046,642       4,072,112       3,997,412            
CLASSIFIED PROGRAMS UNDISTRIBUTED...  ..............           2,000          12,700          15,400            
SR-71...............................  ..............  ..............          30,000          30,000            
CIVILIAN PERSONNEL UNDERSTRENGTH....  ..............         -80,000         -30,000         -72,000            
INFORMATION TECHNOLOGY..............  ..............             100  ..............  ..............            
GENERAL REDUCTION, NATIONAL DEFENSE                                                                             
 STOCKPILE FUND.....................         -50,000         -50,000         -50,000         -50,000            
REAL PROPERTY MAINTENANCE...........  ..............         320,000  ..............         151,000            
FOREIGN CURRENCY FLUCTUATION........  ..............          20,600  ..............           7,200            
EDCARS/DSREDS.......................  ..............           2,000  ..............           2,000            
INSPECTOR GENERAL CONSOLIDATION.....  ..............         -11,000  ..............         -11,000            
REDUCED AUDITS......................  ..............         -13,000         -13,000         -13,000            
PRINTING EFFICIENCIES...............  ..............          -3,000          -3,000          -3,000            
ADMINISTRATIVE TRAVEL SAVINGS.......  ..............  ..............         -17,500         -28,500            
BARRACKS RENOVATION INITIATIVES.....  ..............  ..............         100,000  ..............            
TRANSPORTATION IMPROVEMENTS.........  ..............         -15,300         -15,300         -15,300            
PROVIDE COMFORT/ENHANCED SOUTHERN                                                                               
 WATCH..............................  ..............         393,200  ..............         393,200            
SUPPLY MANAGEMENT REFORMS...........  ..............         -13,600  ..............         -13,600            
OPERATIONAL SUPPORT AIRLIFT.........  ..............         -20,604  ..............  ..............            
                                                     -----------------------------------------------------------
      TOTAL, O&M, AIR FORCE.........      18,206,597      18,873,793      18,202,437      18,561,267            
TRANSFER............................        (50,000)        (50,000)        (50,000)        (50,000)            
                                                     -----------------------------------------------------------
      TOTAL FUNDING AVAILABLE.......    (18,256,597)    (18,923,793)    (18,252,437)    (18,611,267)            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

Budget Activity 1: Operating Forces:s of dollars]
    12250 Air Guard Transfer..................................   (6,200)
    12250 Excess Funded Carryover.............................  (27,000)
    12250 Mission Readiness Training..........................   25,200 
    12250 Precision Weapons...................................    1,000 
    12250 Spares Funding......................................   36,000 
    12400 Caribbean Basin Radars..............................    3,000 
    12400 Simulation Enhancements.............................    4,900 
    12450 Combat Communications Transfer to R&D...............   (7,900)
    12650 Rivet Joint.........................................    4,000 
Budget Activity 2: Mobilization:
    13450 KC-135s.............................................    2,000 
    13450 Excess Funded Carryover.............................  (13,000)
Budget Activity 3: Training and Recruiting:
    14200 Undergraduate Pilot Training........................  (10,000)
    14500 Recruiting and Advertising..........................    5,000 
    14600 Tuition Assistance..................................    4,000 
Budget Activity 4: Administration and Servicewide Activities:
    14950 Acquisition Reform..................................  (40,000)
    14950 B-1 Maintenance.....................................    4,000 
    15100 CAMS/REMIS..........................................      100 
    15250 STRATCOM............................................    2,500 
    15250 Administrative Efficiencies.........................   (8,000)
    15350 Personnel Management Efficiencies...................   (3,000)
    15400 Rescue and Recovery Programs........................    4,400 
    15650 Civil Air Patrol....................................    2,000 
    15750 Pentagon Renovation Transfer........................  (32,730)
    15850 Security Programs (Arms Control)....................   (8,000)
Other Adjustments:
    16015 SR-71...............................................   30,000 
    16040 Civilian Underexecution.............................  (72,000)
    16110 Foreign Currency....................................    7,200 
    16170 Inspector General Consolidation.....................  (11,000)
    16192 Administrative Travel Savings/Executive Transport...  (28,500)
    16230 Provide Comfort/Enhanced Southern Watch.............  393,200 
    16235 Supply Management Reforms...........................  (13,600)

                         Counterdrug Operations

      The conferees direct that no more than $8,000,000 of 
available funds are to be used to relocate USSOUTHCOM radars. 
These funds are intended to augment counterdrug O&M funding and 
are not to be counted against the fiscal year 1996 appropriated 
level for counterdrug O&M activities.

                    alternative power demonstration

      The conferees agree that the report on the demonstration 
of alternative power sources for Burnt Mountain should be 
provided to the Committees on Appropriations by September 30, 
1997.

                Operation and Maintenance, Defense-Wide

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, DEFENSE-                                                                             
 WIDE                                                                                                           
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
JOINT CHIEFS OF STAFF...............         475,977         537,977         480,977         480,977            
SPECIAL OPERATIONS COMMAND..........       1,018,476       1,018,476       1,018,476       1,019,476            
PROVIDE COMFORT/ENHANCED SOUTHERN                                                                               
 WATCH..............................  ..............  ..............  ..............          10,100            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       1,494,453       1,566,553       1,499,453       1,510,553            
                                                     ===========================================================
BUDGET ACTIVITY 2: MOBILIZATION                                                                                 
DEFENSE LOGISTICS AGENCY............          26,000          26,000          26,000          26,000            
WASHINGTON HEADQUARTERS SERVICES....          45,438  ..............  ..............  ..............            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2......          71,438          26,000          26,000          26,000            
                                                     ===========================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
DEFENSE ACQUISITION UNIVERSITY......         112,991          93,991         112,991         101,491            
DEFENSE BUSINESS MANAGEMENT0                                                                                    
 UNIVERSITY.........................          19,669           3,969          19,669          19,669            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3......         132,660          97,960         132,660         121,160            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
AMERICAN FORCES INFORMATION SERVICE.          90,892          90,892          90,892          90,892            
CORPORATE INFORMATION MANAGEMENT....         127,967         127,967         127,967         127,967            
CLASSIFIED AND INTELLIGENCE.........       3,350,037       3,340,369       3,334,237       3,334,469            
DEFENSE CIVILIAN PERSONNEL00                                                                                    
 MANAGEMENT SERVICE.................          45,631          40,831          45,631          43,231            
DEFENSE CONTRACT AUDIT AGENCY.......         342,926         332,126         342,926         332,126            
DEFENSE INVESTIGATIVE SERVICE.......         201,582         197,682         201,582         199,582            
DEFENSE LOGISTICS AGENCY............       1,055,996       1,036,696       1,072,996       1,069,696            
PROCUREMENT TECHNICAL ASSISTANCE                                                                                
 PROGRAM............................  ..............  ..............          12,000  ..............            
DEFENSE LEGAL SERVICES AGENCY.......           6,540           6,540           6,540           6,540            
DEFENSE MAPPING AGENCY..............         734,438         695,338         734,438         714,538            
DEFENSE NUCLEAR AGENCY..............          96,105          96,105          96,105          96,105            
DEFENSE POW/MIA OFFICE..............          13,486          13,486          13,486          13,486            
FEDERAL ENERGY MANAGEMENT PROGRAM...         234,682         120,000          50,000          50,000            
DEPARTMENT OF DEFENSE DEPENDENTS                                                                                
 EDUCATION..........................       1,292,684       1,168,825       1,293,184       1,306,729            
DEFENSE SUPPORT ACTIVITIES..........          82,562          82,562          82,562          82,562            
DEFENSE TECHNOLOGY SECURITY0                                                                                    
 ADMINISTRATION.....................          10,858          10,858          10,858          10,858            
JOINT CHIEFS OF STAFF...............          97,873          97,873          97,873          97,873            
OFFICE OF ECONOMIC ADJUSTMENT.......          59,078          60,578          59,078          60,578            
OFFICE OF THE SECRETARY OF DEFENSE..         349,291         267,761         324,622         323,922            
ON SITE INSPECTION AGENCY...........          97,987          97,987          85,987          85,987            
WASHINGTON HEADQUARTERS SERVICES....         308,421         298,821         308,421         298,821            
PENTAGON RENOVATION TRANSFER........  ..............  ..............         -50,830         108,020            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......       8,599,036       8,183,297       8,340,555       8,453,982            
                                                     ===========================================================
BUDGET ACTIVITY 5: INTEREST0                                                                                    
BUDGET ACTIVITY 6: CAPITAL LEASE                                                                                
DEFENSE BUSINESS MANAGEMENT0                                                                                    
 UNIVERSITY.........................          69,195  ..............  ..............  ..............            
CIVILIAN PAY........................  ..............  ..............         -74,400  ..............            
CIVILIAN PERSONNEL UNDERSTRENGTH....  ..............         -60,000         -57,700         -45,000            
INFORMATION TECHNOLOGY..............  ..............         112,000  ..............          12,000            
JOINT MARKET RESEARCH PROGRAM.......  ..............           2,000  ..............           2,000            
FOREIGN CURRENCY FLUCTUATION........  ..............          24,200  ..............           6,400            
IMPACT AID..........................  ..............          35,000  ..............          35,000            
TRANSPORTATION IMPROVEMENTS.........  ..............         -18,200  ..............  ..............            
TRAVEL RE-ENGINEERING...............  ..............         -10,000         -22,500         -33,500            
GENERAL REDUCTION...................  ..............  ..............         -40,000  ..............            
TRAVEL REDUCTION....................  ..............         -50,000  ..............  ..............            
COAST GUARD TRANSFER................  ..............  ..............  ..............         300,000            
                                                     -----------------------------------------------------------
      TOTAL, O&M, DEFENSE-WIDE......      10,366,782       9,908,810       9,804,068      10,388,595            
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

      Adjustments to the budget activities are as follows:

Budget Activity 1: Operating Forces:s of dollars]
    16500 Northern Edge.......................................     5,000
    16550 Seal Delivery Vehicle Team One......................     1,000
    16560 Provide Comfort/Enhanced Southern Watch.............    10,100
Budget Activity 3: Training and Recruiting:
    16950 DAU/Defense Systems Management College..............  (11,500)
Budget Activity 4: Administration and Servicewide Activities:
    17300 Defense Civilian Personnel Management Service.......   (2,400)
    17350 Defense Contract Audit Agency.......................  (10,800)
    17400 Defense Investigative Service.......................   (2,000)
    17450 DLA Acquisition Reform..............................  (10,700)
    17450 DLA Security Locks..................................    15,000
    17450 DLA Homeless Initiative.............................   (2,600)
    17450 DLA Procurement Technical Assistance................    12,000
    17550 DMA, Minor Equipment................................  (13,800)
    17550 DMA, Internet Access................................     (600)
    17550 DMA, Productivity Improvements......................   (4,500)
    17550 DMA, Personnel Regionalization......................   (1,000)
    17700 Federal Energy Management Program................... (184,682)
    17750 DoDDS Administrative Overhead.......................  (10,000)
    17750 New Parent Support Program..........................    25,600
    17750 Relocation Assistance Program.......................   (2,055)
    17750 DoDDS Mathematics Teachers Leadership Project.......       500
    17950 Office of Economic Adjustment.......................     1,500
    18000 OSD Mobility Enhancements...........................    41,000
    18000 OSD, DFAS Efficiencies..............................  (20,000)
    18000 OSD Management Efficiencies.........................  (24,669)
    18000 OSD, Acquisition Reform.............................     (400)
    18000 OSD, Staffing Reductions............................   (6,400)
    18000 OSD, Acquisition Program Growth.....................   (4,200)
    18000 OSD, Consulting Services Growth.....................  (20,700)
    18000 OSD, Joint Recruiting and Advertising Program.......    10,000
    18100 OSIA (Arms Control).................................  (12,000)
    18150 WHS, Inventory Growth...............................   (9,600)
    18155 Pentagon Renovation Transfer........................   108,020
Other Adjustments:
    18530 Civilian Underexecution.............................  (45,000)
    18550 Information Technology..............................    12,000
    18570 Joint Market Research Program.......................     2,000
    18590 Foreign Currency....................................     6,400
    18610 Impact Aid..........................................    35,000
    18650 Travel Efficiencies/Executive Transport.............  (33,500)
    18710 Coast Guard Defense Missions........................   300,000

                joint analysis model improvement program

      The conferees agree that, of the funds provided, 
$11,200,000 shall be made available for the Joint Analysis 
Model Improvement Program.

                          pentagon renovation

      The conferees direct that the Pentagon renovation funding 
be consolidated in the Operation and Maintenance, Defense-wide 
account. The conferees have provided a total of $108,020,000 
for the Pentagon renovation.

                      troops to cops and teachers

      The Senate included language providing $52,000,000 to 
continue the Troops to Cops and Troops to Teachers programs. 
The conferees have deleted this language. The conferees expect 
the Defense Department to consider using existing resources 
within this appropriation, if available, to continue these 
programs.

    transition assistance program and relocation assistance program

      The conferees agree to provide $49,300,000 for the 
Transition Assistance Program and $18,504,000 for the 
Relocation Assistance Program for fiscal year 1996. However, 
the conferees are concerned that these programs have become 
permanent entities, even though they were initiated to provide 
service members and their families with separation and 
relocation assistance resulting from the drawdown. At the end 
of fiscal year 1996, the Department of Defense will have 
largely completed its downsizing effort. Accordingly, the 
conferees direct the Department to report to the Defense 
Committees no later than March 1, 1996, on phasing out these 
programs, and what, if any residual level of continued 
resourcing is required.

                OPERATION AND MAINTENANCE, ARMY RESERVE

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY                                                                                 
 RESERVE                                                                                                        
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
MISSION OPERATIONS     19000                                                                                    
BASE SUPPORT........................         284,036         284,036         284,036         284,036            
DEPOT MAINTENANCE...................          57,377          57,377          57,377          57,377            
RECRUITING AND RETENTION............          43,963          43,963          43,963          43,963            
TRAINING OPERATIONS.................         573,414         606,414         573,414         606,414            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......         958,790         991,790         958,790         991,790            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
INFORMATION MANAGEMENT..............          17,492          17,492          17,492          17,492            
PUBLIC AFFAIRS......................             423             423             423             423            
PERSONNEL ADMINISTRATION............          61,941          61,941          61,941          61,941            
STAFF MANAGEMENT....................          29,945          29,945          29,945          29,945            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......         109,801         109,801         109,801         109,801            
                                                     ===========================================================
REAL PROPERTY MAINTENANCE...........  ..............          17,000  ..............          17,000            
MILITARY/CIVILIAN TECHNICIAN                                                                                    
 RESTORATION........................  ..............           5,000  ..............           5,000            
RESERVE COMPONENT AUTOMATION SYSTEM.  ..............          -4,400  ..............          -4,400            
TRANSITION BENEFITS.................  ..............  ..............            -279  ..............            
                                                     -----------------------------------------------------------
      TOTAL, O&M, ARMY RESERVE......       1,068,591       1,119,191       1,068,312       1,119,191            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

Budget Activity 1: Operating Forces:s of dollars]
    19200 Training operations.................................    33,000
Other adjustments:
    19650 Real property maintenance...........................    17,000
    19660 Military/civilian technician restoration............     5,000
    19680 Reserve component automation system.................    -4,400
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................   +50,600

                Operation and Maintenance, Navy Reserve

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
Operation and maintenance, Navy                                                                                 
 Reserve                                                                                                        
Budget activity 1: Operating forces                                                                             
Reserve air operations 20100                                                                                    
Mission and other flight operations.         291,673         291,673         291,673         291,673            
P-3 squadron operations.............  ..............  ..............  ..............           6,000            
Intermediate maintenance............          17,813          17,813          17,813          17,813            
Air operation and safety support....           1,915           1,915           1,915           1,915            
Aircraft depot maintenance..........          49,338          59,338          49,338          54,338            
Aircraft depot OPS support..........             356             356             356             356            
Base support........................         130,854         130,854         130,854         130,854            
Reserve Ship operations20450                                                                                    
Mission and other ship operations...          60,895          60,895          60,895          60,895            
Ship operational support and                                                                                    
 training...........................             658             658             658             658            
Intermediate maintenance............          23,990          23,990          23,990          23,990            
Ship depot maintenance..............          70,930          70,930          70,930          70,930            
Ship depot operations support.......           1,467           1,467           1,467           1,467            
Reserve combat operations support                                                                               
Combat communications...............             817             817             817             817            
Combat support forces...............          25,207          25,207          25,207          25,207            
Base support........................          52,410          52,410          52,410          52,410            
Reserve weapons support20950                                                                                    
Weapons maintenance.................           5,641           5,641           5,641           5,641            
                                                     -----------------------------------------------------------
      Total, Budget Activity 1......         733,964         743,964         733,964         744,964            
                                                     ===========================================================
Budget Activity 4: Admin &00                                                                                    
 servicewide activities                                                                                         
Administration and servicewide                                                                                  
 activities                                                                                                     
Administration......................           8,029           8,029           8,029           8,029            
Civilian manpower and personnel                                                                                 
 management.........................           3,222           3,222           3,222           3,222            
Military manpower and personnel                                                                                 
 management.........................          31,209          31,209          31,209          31,209            
Servicewide communications..........          21,247          21,247          21,247          21,247            
Base support........................          25,723          25,723          25,723          25,723            
Combat/Weapons systems..............           2,648           2,648           2,648           2,648            
                                                     -----------------------------------------------------------
      Total, Budget Activity 4......          92,078          92,078          92,078          92,078            
                                                     ===========================================================
Real property maintenance...........  ..............          12,000  ..............          20,000            
NSIPS...............................  ..............           9,000  ..............           2,500            
Operational support airlift.........  ..............         -15,477  ..............  ..............            
                                                     ===========================================================
      Total, O&M, Navy Reserve......         826,042         841,565         826,042         859,542            
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

Budget Activity 1: Operating Forces:s of dollars]
    20175-P-3 Squadrons.......................................     6,000
    20300 Aircraft Depot Maintenance..........................     5,000
Other Adjustments:
    21580 Real Property Maintenance...........................    20,000
    21590 NSIPS...............................................     2,500
                    --------------------------------------------------------------
                    ____________________________________________________

      Total Adjustments.......................................   +33,500

             Operation and Maintenance Marine Corps Reserve

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, MARINE                                                                               
 CORPS RESERVE                                                                                                  
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
MISSION FORCES         22050                                                                                    
TRAINING............................          13,617          14,517          13,617          14,517            
OPERATING FORCES....................          21,237          27,637          21,237          25,637            
BASE SUPPORT........................          18,059          18,059          18,059          18,059            
DEPOT MAINTENANCE...................           2,322           3,722           2,322           3,322            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......          55,235          63,935          55,235          61,535            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
RECRUITING AND ADVERTISING..........           7,609           7,609           7,609           7,609            
SPECIAL SUPPORT.....................           9,064           9,064           9,064           9,064            
SERVICEWIDE TRANSPORTATION..........           5,381           5,381           5,381           5,381            
ADMINISTRATION......................           6,274           6,274           6,274           6,274            
BASE SUPPORT........................           6,720          11,020           6,720           8,920            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......          35,048          39,348          35,048          37,248            
                                                     ===========================================================
REAL PROPERTY MAINTENANCE...........  ..............           1,500  ..............           1,500            
OPERATIONAL SUPPORT AIRLIFT.........  ..............          -2,704  ..............  ..............            
                                                     ===========================================================
      TOTAL, O&M, MARINE CORPS                                                                                  
       RESERVE......................          90,283         102,079          90,283         100,283            
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

    Adjustments to the budget activities are as follows:

Budget Activity 1: Operating Forces:s of dollars]
    22100 Training............................................       900
    22150 Operating Forces....................................     4,400
    22250 Depot Maintenance...................................     1,000
Budget Activity 4: Admin & Servicewide Activities:
    22700 Base Support........................................     2,200
Other Adjustments:
    22770 Real Property Maintenance...........................     1,500
                    --------------------------------------------------------------
                    ____________________________________________________

      Total Adjustments.......................................   +10,000

              Operation and Maintenance, Air Force Reserve

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR FORCE                                                                            
 RESERVE                                                                                                        
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
AIR OPERATIONS         23250                                                                                    
AIRCRAFT OPERATIONS.................       1,103,593       1,115,433       1,103,593       1,115,433            
MISSION SUPPORT OPERATIONS..........          35,073          35,073          35,073          35,073            
BASE SUPPORT........................         282,248         282,248         282,248         282,248            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       1,420,914       1,432,754       1,420,914       1,432,754            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
ADMINISTRATION......................          33,107          33,107          33,107          33,107            
MILITARY MANPOWER AND PERSONNEL                                                                                 
 MANAGEMENT.........................          17,746          17,746          17,746          17,746            
RECRUITING AND ADVERTISING..........           7,743           7,743           7,743           7,743            
OTHER PERSONNEL SUPPORT.............           6,063           6,063           6,063           6,063            
AUDIOVISUAL.........................             374             374             374             374            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......          65,033          65,033          65,033          65,033            
                                                     ===========================================================
REAL PROPERTY MAINTENANCE...........            ----          13,500            ----          13,500            
MILITARY/CIVILIAN TECHNICIAN                                                                                    
 RESTORATION........................            ----           8,000            ----           8,000            
                                                     -----------------------------------------------------------
      TOTAL, O&M, AIR FORCE RESERVE.       1,485,947       1,519,287       1,485,947       1,519,287            
----------------------------------------------------------------------------------------------------------------

                    adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

Budget Activity 1: Operating Forces:s of dollars]
    23300 Aircraft Operations.................................    11,840
Other Adjustments:
    24030 Real Property Maintenance...........................    13,500
    24040 Military/Civilian Technician Restoration............     8,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total Adjustments.......................................   +33,340

             Operation and Maintenance, Army National Guard

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY                                                                                 
 NATIONAL GUARD                                                                                                 
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
MISSION OPERATIONS     24500                                                                                    
TRAINING OPERATIONS.................       1,720,134       1,760,134       1,720,134       1,760,134            
RECRUITING AND RETENTION............          20,110          20,110          20,110          20,110            
MEDICAL SUPPORT.....................          19,109          19,109          19,109          19,109            
DEPOT MAINTENANCE...................         100,687         100,687         100,687         100,687            
BASE SUPPORT........................         250,378         250,378         252,978         252,978            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       2,110,418       2,150,418       2,113,018       2,153,018            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &50                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
INFORMATION MANAGEMENT..............          59,496          29,396          59,496          44,596            
PUBLIC AFFAIRS......................           1,461           1,461           1,461           1,461            
PERSONNEL ADMINISTRATION............          89,665          89,665          89,665          89,665            
STAFF MANAGEMENT....................          43,068          43,068          43,068          43,068            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......         193,690         163,590         193,690         178,790            
                                                     ===========================================================
REAL PROPERTY MAINTENANCE...........  ..............          21,000         100,000         100,000            
MILITARY/CIVILIAN TECHNICIAN                                                                                    
 RESTORATION........................  ..............           9,000  ..............           9,000            
TRANSITION BENEFITS.................  ..............  ..............         -45,000  ..............            
OPERATIONAL SUPPORT AIRLIFT.........  ..............          -9,521  ..............  ..............            
                                                     -----------------------------------------------------------
      TOTAL, O&M, ARMY NATIONAL                                                                                 
       GUARD........................       2,304,108       2,334,487       2,361,708       2,440,808            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

Budget Activity 1: Operating Forces:s of dollars]
    24550 Training Operations.................................    40,000
    24750 Base Support........................................     2,600
Budget Activity 4: Admin & Servicewide Activities:
    24950 Information Management..............................   -14,900
Other Adjustments:
    25180 Real Property Maintenance...........................   100,000
    25190 Military/Civilian Technician Restoration............     9,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total Adjustments.......................................  +136,700

             Operation and Maintenance, Air National Guard

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

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR                                                                                  
 NATIONAL GUARD                                                                                                 
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
AIR OPERATIONS         25650                                                                                    
AIRCRAFT OPERATIONS.................       1,977,786       1,979,286       2,005,186       2,006,686            
MISSION SUPPORT OPERATIONS..........         346,687         346,687         246,687         346,687            
BASE SUPPORT........................         361,224         361,224         361,224         361,224            
DEPOT MAINTENANCE...................          18,410          19,910          18,410          19,910            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       2,704,107       2,707,107       2,731,507       2,734,507            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
SERVICEWIDE ACTIVITIES 26050                                                                                    
ADMINISTRATION......................           3,127           3,127           3,127           3,127            
RECRUITING AND ADVERTISING..........           4,987           4,987           4,987           4,987            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......           8,114           8,114           8,114           8,114            
                                                     ===========================================================
REAL PROPERTY MAINTENANCE...........  ..............          15,000  ..............          15,000            
MILITARY/CIVILIAN TECHNICIAN                                                                                    
 RESTORATION........................  ..............           7,000  ..............          18,500            
TRANSITION BENEFITS.................  ..............  ..............         -15,600  ..............            
                                                     ===========================================================
      TOTAL, O&M, AIR NATIONAL GUARD       2,712,221       2,737,221       2,724,021       2,776,121            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

Budget Activity 1: Operating Forces:s of dollars]
    25700 Aircraft Operations.................................    28,900
    25850 Depot Maintenance...................................     1,500
Other Adjustments:
    26230 Real Property Maintenance...........................    15,000
    26240 Military/Civilian Technician Restoration............    18,500
                    --------------------------------------------------------------
                    ____________________________________________________

      Total Adjustments.......................................   +63,900

                   Environmental Restoration, Defense

      The conferees agree to provide $1,422,200,000 for 
Environmental Restoration, Defense.

                       environmental remediation

      The conferees support the ``relative risk'' approach to 
environmental remediation and expect the Department to make 
sure the most hazardous sites receive primary attention. While 
the conferees believe that all bases--those closing and those 
remaining open--must meet environmental standards the 
Department must not let ongoing environmental clean-up efforts 
preclude reuse opportunities at closing military installations. 
In these cases, the Department should work aggressively and 
innovatively with State and local officials to lower clean-up 
costs and to be sure environmental issues do not make it harder 
for affected communities to recover from losing a military 
installation.

                            summer olympics

      The conference agreement recommends an appropriation of 
$15,000,000 as proposed by the House and Senate for support of 
the 1996 Games of the XXVI Olympiad.

             overseas humanitarian, disaster, and civic aid

      The conferees agree to provide $50,000,000 for these 
functions of which $20,000,000 is specifically earmarked for 
training and activities related to the clearing of landmines 
for humanitarian purposes.
      The conferees also agree to the House recommendation to 
consolidate all funds for humanitarian, disaster, and civil aid 
into a single account.

                  former soviet union threat reduction

      The conferees agree to provide $300,000,000 for the 
Former Soviet Union Threat Reduction program, a reduction of 
$71,000,000 from the budget request. Funding provided at the 
subprogram level appears in the following table:

------------------------------------------------------------------------
             Program                Budget   House    Senate  Conference
------------------------------------------------------------------------
Nuclear Arms Reduction...........   $167.5   $167.5   $167.5     $167.5 
Defense Enterprise Fund..........       40        0        0          0 
Chemical Weapons Destruction.....      104        0      104         79 
Fissile Material.................       29        6       29         29 
      Other......................     30.5     26.5     24.5       24.5 
                                  --------------------------------------
      Total......................      371      200      325        300 
------------------------------------------------------------------------


      Although no new funds are provided for the Defense 
Enterprise Fund, the conferees agree that up to $200,000,000 of 
previously appropriated funds may be expended to administer the 
continued operation of the Defense Enterprise Fund program 
currently underway. The conferees have included two general 
provisions regarding the Former Soviet Union Threat Reduction 
program involving the limitation on expenditures of funds for 
the Chemical Weapons Destruction program and a prohibition on 
providing funds for housing for current or former Soviet 
military officers.

                               TITLE III

                              Procurement

      The conference agreement is as follows:

------------------------------------------------------------------------
                         Budget       House        Senate     Conference
------------------------------------------------------------------------
        SUMMARY                                                         
                                                                        
ARMY:                                                                   
    AIRCRAFT........    1,223,067    1,468,067    1,498,623    1,558,805
    MISSILES........      676,430      842,830      846,555      865,555
    WEAPONS, TRACKED                                                    
     COMBAT VEHICLES    1,298,986    1,616,964    1,396,264    1,652,745
    AMMUNITION......      795,015    1,019,315    1,090,891    1,110,685
    OTHER...........    2,256,601    2,570,125    2,760,002    2,769,443
                     ---------------------------------------------------
      TOTAL, ARMY...    6,250,099    7,517,301    7,592,335    7,957,233
                     ===================================================
NAVY:                                                                   
    AIRCRAFT........    3,886,488    4,310,703    4,897,393    4,589,394
    WEAPONS.........    1,787,121    1,736,211    1,771,421    1,669,827
    AMMUNITION......  ...........      483,779  ...........      430,053
    SHIPS...........    5,051,935    5,577,958    7,062,001    6,643,958
    OTHER...........    2,396,080    2,480,670    2,394,260    2,503,581
    MARINE CORPS....      474,116      480,852      597,139      458,947
                     ---------------------------------------------------
      TOTAL, NAVY...   13,595,740   15,070,173   16,722,214   16,295,760
                     ===================================================
AIR FORCE:                                                              
    AIRCRAFT........    6,183,886    7,140,703    7,163,258    7,367,983
    MISSILES........    3,647,711    3,223,265    3,550,192    2,943,931
    AMMUNITION......  ...........      321,328  ...........      338,800
    OTHER...........    6,804,696    6,508,425    6,540,951    6,284,230
                     ---------------------------------------------------
      TOTAL, AIR                                                        
       FORCE........   16,636,293   17,193,721   17,254,401   16,934,944
                     ===================================================
DEFENSE-WIDE........    2,179,917    2,187,085    2,114,824    2,124,379
NATIONAL GUARD AND                                                      
 RESERVE EQUIPMENT..  ...........      908,125      777,000      777,000
                     ---------------------------------------------------
      TOTAL                                                             
       PROCUREMENT..   38,662,049   42,876,405   44,460,774   44,089,316
------------------------------------------------------------------------

            Joint Forces Command, Control and Communications

      The conferees understand the importance of 
interoperability for joint forces in war and peacetime and have 
provided an additional $103,300,000 to correct critical 
deficiencies. However, through testimony from the Vice 
Chairman, Joint Chiefs of Staff, Service Chiefs and Commanders 
in Chief of the various Unified and Specified Commands, the 
conferees believe that deficiencies in command, control and 
communications still exist. The conferees encourage the 
Secretary of Defense to provide adequate resources for joint 
interoperability initiatives and will entertain reprogramming 
action that provides additional funds for this purpose.

                   ammunition and missile quantities

      The conferees agree the quantities of missiles and 
ammunition noted in the following tables are to be considered a 
floor and direct the Department to buy as many units as 
appropriated funds will allow. In no case shall the Department 
buy less than the quantities noted in the table unless the 
congressional defense committees are informed as to why these 
levels are unachievable.

                       aircraft procurement, army

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate         Quantity       Conference  
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, ARMY                                                                                      
    C-XX (MEDIUM RANGE) AIRCRAFT  ..............  ..............          23,000               4          23,000
    UH-60 BLACKHAWK (MYP).......         334,880         334,880         302,962              60         334,880
    UH-60 BLACKHAWK (MYP) (AP-                                                                                  
     CY)........................  ..............          75,000          70,000  ..............          70,000
    GUARDRAIL MODS (TIARA)......          48,969          57,969          48,969  ..............          57,969
    AH-64 MODS..................          53,596          53,596          50,596  ..............          53,596
    LONGBOW.....................         341,968         341,968         418,168  ..............         418,168
    KIOWA WARRIOR...............          71,334         211,334         196,334              20         211,334
    SPARES AND REPAIR PARTS.....          49,177          49,177          33,351  ..............          34,615
    AIRCRAFT SURVIVABILITY                                                                                      
     EQUIPMENT..................          22,304          43,304          54,404  ..............          54,404
----------------------------------------------------------------------------------------------------------------

                          AH-64 Modifications

      The conferees agree to provide the budget request of 
$53,596,000 for AH-64 modifications. Of this amount, $3,000,000 
shall be used to procure additional embedded global 
positioning/inertial navigation systems for Apache helicopters.

                                 uh-60

      The conferees agree with the Senate language regarding 
enhanced protection systems. However, in view of the conference 
agreement to fund a multi-year procurement program for the UH-
60, the conferees believe that the House-recommended report on 
helicopter production strategies is not required.

                      High capacity air ambulance

      The conferees are deeply concerned by the failure of the 
Army to address the need for a High Capacity Air Ambulance 
(HCAA). The Army Surgeon General has stated that this is one of 
his highest priorities. The conferees direct the Army to seek 
an appropriate solution and report the results of the planned 
joint exercise with the Air Force and National Guard by 
February 15, 1996. The report should include the feasibility of 
utilizing C-130s for the HCAA fixed wing requirement, the role 
of the Army and Air National Guard in this mission, and 
requirements for the UH-60L and or UH-60Q helicopters for the 
National Guard in order to accomplish the rotary wing portion 
of this mission. The conferees direct that, of the funds 
appropriated for UH-60Ls, the first 9 aircraft to be procured 
within the Aircraft Procurement, Army appropriation will be 
assigned to the National Guard.

                       Missile Procurement, Army

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
MISSILE PROCUREMENT, ARMY                                                                                       
    HELLFIRE SYS SUMMARY........         209,460         249,460         246,685             750         246,685
    JAVELIN (AAWS-M) SYSTEM                                                                                     
     SUMMARY....................         171,428         210,428         206,928           1,010         206,928
    TOW 2 SYSTEM SUMMARY........           7,378           7,378          27,378           1,000          12,378
    MLRS LAUNCHER SYSTEMS.......          48,158          64,558          64,558              29          98,558
    STINGER MODS................          10,095          20,095          10,095              --          10,095
----------------------------------------------------------------------------------------------------------------

                             tow 2 missiles

      The conferees agree to provide $12,378,000 for TOW 2 
missiles, an increase of $5,000,000 to modify the capstan block 
of existing TOW 2 missiles.

                multiple launch rocket system launchers

      The conferees agree to provide $98,588,000 for multiple 
launch rocket system launchers, an increase of $50,400,000 only 
for the refurbishment of existing launchers which are to be 
transferred to the National Guard.

        Procurement of Weapons and Tracked Combat Vehicles, Army

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
Procurement of W&TCV, Army                                                                                      
    Armored Gun System (AGS)....         141,551         141,551         141,551              26         147,551
    M1 Abrams Tank Series (MYP).  ..............  ..............          15,000  ..............           3,000
    Carrier, MOD................          48,067          49,667          48,067  ..............          49,667
    BFVS Series (MOD)...........          74,336          74,336          88,336  ..............          88,336
    Howitzer, MED SP FT 155MM                                                                                   
     M109A6 (MOD)...............         220,239         302,039         220,239  ..............         302,039
    M1 Abrams Tank (MOD)........          77,076          46,754          51,754  ..............          51,754
    Abrams Upgrade Program......         340,911         340,911         340,911  ..............         450,911
    Abrams Upgrade Program (MCR)  ..............         110,000  ..............  ..............  ..............
    Production Base Support (TCV-                                                                               
     WTCV)......................          11,619          11,619           4,019  ..............           5,500
    FAASV.......................  ..............          44,000  ..............  ..............          44,000
    Machine Gun, 5.56MM (SAW)...  ..............          28,500          12,500  ..............          28,500
    Grenade Launcher, Auto 40MM,                                                                                
     MK19-3.....................  ..............          20,000          33,900  ..............          33,900
    M16 Rifle...................  ..............          13,500           6,500  ..............          13,500
    Medium Machine Gun..........  ..............           6,500           5,900  ..............           6,500
----------------------------------------------------------------------------------------------------------------

                             Test Equipment

      The conferees agree to provide $15,000,000 for Direct 
Support Electronic System Test Sets (DSESTS). The funding is 
appropriated as follows:

                                                              Conference
Armored Gun System......................................      $6,000,000
Abrams Tank Series......................................       3,000,000
Combat Vehicle Improvement Program (RDT&E,A)............       6,000,000

                    Procurement of Ammunition, Army

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, ARMY                                                                                 
    CTG, 7.62MM, ALL TYPES......           2,573           2,573          12,573  ..............           7,573
    CTG, 25MM, ALL TYPES........          35,139          45,139          70,139  ..............          70,139
    SPECIAL PURPOSE AMMUNITION..  ..............  ..............  ..............  ..............           6,000
    CTG MORTAR 60MM 1/10 PRAC                                                                                   
     M766.......................  ..............           3,600  ..............  ..............           3,600
    CTG MORTAR 81MM PRAC 1/10                                                                                   
     RANGE M880.................  ..............           6,600  ..............  ..............           6,600
    CTG MORTAR 120MM SMOKE XM929                                                                                
     W/MO FUZE..................          47,704          69,704          67,704              44          67,704
    CTG ARTY 75MM BLANK M337A1..           3,749           3,749  ..............             102           1,500
    PROJ ARTY 155MM SMOKE WP                                                                                    
     M825.......................          10,607          10,607           5,132  ..............           5,132
    PROJ ARTY 155MM SADARM XM898          24,284          24,284          42,284              77          42,284
    MINE AT/AP M87 (VOLCANO)....  ..............  ..............          30,000  ..............          30,000
    DEMOLITION MUNITIONS, ALL                                                                                   
     TYPES......................          26,269          26,269          32,269  ..............          32,269
    PROVISION OF INDUSTRIAL                                                                                     
     FACILITIES.................          41,906          66,906          41,906  ..............          44,000
    LAYAWAY OF INDUSTRIAL                                                                                       
     FACILITIES.................          13,663          23,663          13,663  ..............          18,663
    ARMAMENT RETOOLING &                                                                                        
     MANUFACTURING SUPPORT                                                                                      
     (ARMS).....................  ..............  ..............          45,000  ..............          45,000
    CONVENTIONAL AMMO                                                                                           
     DEMILITARIZATION...........          96,280         106,280         100,280  ..............         100,280
----------------------------------------------------------------------------------------------------------------

                       special purpose ammunition

      The conferees agree to provide $6,000,000 for special 
purpose ammunition. The increase is to be allocated as follows:

                                                              Conference
7.62 MM (XM993).........................................      $2,000,000
5.56 MM (XM995).........................................       2,000,000
.50 caliber (MK211).....................................       2,000,000

                         ctg 120 mm heat m830a1

      The conferees direct the Army to procure 120MM HEAT 
M830A1 tank rounds with the $15,000,000 appropriated in fiscal 
year 1994 for AT-4 modifications.

                        Other Procurement, Army

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, ARMY                                                                                         
    HI MOB MULTI-PURP WHLD VEH                                                                                  
     (HMMWV) (MYP)..............          57,690         109,690         129,690             546         129,690
    FAMILY OF HEAVY TACTICAL                                                                                    
     VEHICLES (MYP).............             596         100,596         125,596  ..............         125,596
    MEDIUM TRUCK EXTENDED SVC                                                                                   
     PGM (ESP) (PREVS)..........  ..............  ..............          30,000  ..............          20,000
    NAVSTAR GLOBAL POSITIONING                                                                                  
     SYSTEM.....................          32,502          50,002          32,502          15,025          50,002
    STD THEATER CMD & CONTROL                                                                                   
     SYS (STACCS)...............          14,526          14,526          17,826  ..............          14,526
    SINCGARS FAMILY.............         310,620         310,620         364,720  ..............         364,720
    EAC COMMUNICATIONS..........           5,896           5,896          45,896  ..............          45,896
    INFORMATION SYSTEMS.........          64,142          40,142          64,142  ..............          52,142
    DEFENSE MESSAGE SYSTEM (DMS)           7,963           7,963          10,763  ..............           7,963
    LOCAL AREA NETWORK (LAN)....          61,547          41,547          61,547  ..............          51,547
    GENERAL DEFENSE INTELL PROG                                                                                 
     (GDIP).....................          29,409          24,188          29,409  ..............          24,188
    ALL SOURCE ANALYSIS SYS                                                                                     
     (ASAS) (TIARA).............           9,886           9,886          16,266  ..............           9,886
    IEW--GND BASE COMMON SENSORS                                                                                
     (TIARA)....................          46,937          46,937  ..............  ..............          46,937
    JOINT STARS (ARMY) (TIARA)..          82,984          99,484          82,984  ..............          82,984
    NIGHT VISION DEVICES........          77,132          77,132          85,132  ..............          85,132
    ADV FIELD ARTILLERY TACT SYS                                                                                
     (AFATDS)...................          30,897          29,397          30,897             221          29,397
    FAAD C2.....................          32,942          40,342          32,942               5          40,342
    MANEUVER CONTROL SYSTEM                                                                                     
     (MCS)......................          13,808          13,808          18,808             152          18,808
    AUTOMATED DATA PROCESSING                                                                                   
     EQUIP......................         132,751         130,351         132,751  ..............         138,751
    RESERVE COMPONENT AUTOMATION                                                                                
     SYS (RCAS).................          83,174         113,174          83,174  ..............          83,174
    INTEGRATED FAMILY OF TEST                                                                                   
     EQUIP (IFTE)...............          26,449          46,449          26,449  ..............          44,949
    LAB PETROLEUM MODULAR BASE..           2,786           2,786  ..............               1           2,786
    ITEMS LESS THAN $2.0M (POL).           5,537           5,537           3,237  ..............           4,700
    COMBAT SUPPORT MEDICAL......          14,310           8,810          14,310  ..............          14,310
    PUSHER TUG, SMALL...........           3,576           3,576  ..............               1           3,576
    ITEMS LESS THAN $2.0M (FLOAT/                                                                               
     RAIL)......................           3,602           2,602           3,602  ..............           2,602
    GENERATORS AND ASSOCIATED                                                                                   
     EQUIP......................          13,761           8,761          48,761  ..............          13,761
    TRAINING DEVICES, NONSYSTEM.          71,561          71,561          76,061  ..............          76,061
    SIMNET/CLOSE COMBAT TACTICAL                                                                                
     TRAINER....................          30,655  ..............          30,655  ..............          30,655
    MODIFICATION OF IN-SVC                                                                                      
     EQUIPMENT (OPA-3)..........          21,911          14,411          21,911  ..............          14,411
----------------------------------------------------------------------------------------------------------------

                   navstar global positioning system

      The conferees agree to provide $32,502,000 for the 
Navstar Global Positioning System, an increase of $17,500,000 
to complete the installation of global positioning systems on 
all Army active and reserve aircraft. The conferees direct that 
priority installation be given to the 1/207th Aviation Regiment 
because of their unique search and rescue mission in remote 
areas.

                         jstars ground stations

      The conferees do not agree on the transfer language for 
JSTARS ground stations from the Army to the Marine Corps. The 
conferees have provided funds in the Procurement, Marine Corps 
appropriation for JSTARS ground stations.

                       Aircraft Procurement Navy

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, NAVY                                                                                      
    EA-6B/REMFG (ELECTRONIC                                                                                     
     WARFARE) PROWLER...........  ..............  ..............         140,000  ..............  ..............
    AV-8B (V/STOL) HARRIER......         148,163         308,163         229,414               8         229,414
    F/A-18C/D (FIGHTER) HORNET..         609,904         583,204       1,096,869              18         822,669
    F/A-18C/D (FIGHTER) HORNET                                                                                  
     (AP-CY)....................  ..............  ..............          86,459  ..............  ..............
    AH-1W (HELICOPTER) SEA COBRA          10,385          75,000          10,385               6          75,000
    T-39N.......................  ..............  ..............          45,000              17          45,000
    EA-6 SERIES.................  ..............  ..............          65,000  ..............         165,000
    F-14 SERIES.................          59,047          59,047          76,147  ..............         107,522
    H-1 SERIES..................          54,530          66,530          71,530  ..............          71,530
    P-3 SERIES..................         178,557         217,857         182,557  ..............         217.357
    TRAINER A/C SERIES..........             727          45,727             727  ..............             727
    COMMON ECM EQUIPMENT........           4,234           4,234          34,234  ..............          34,234
    SPARES AND REPAIR PARTS.....         784,782         784,782         822,912  ..............         784,782
    COMMON GROUND EQUIPMENT.....         367,017         397,017         367,017  ..............         367,017
    AVIATION MULTIYEAR FUND.....  ..............         100,000  ..............  ..............  ..............
----------------------------------------------------------------------------------------------------------------

                            f/a-18c/d hornet

      The conferees agree to provide $822,669,000 for the 
acquisition of eighteen F/A-18C/D aircraft. The conferees do 
not agree with the House reduction of funds for procurement of 
ALR-67(V)3 radar warning receivers.

                                 t-39n

      The conferees agree to provide $45,000,000 to purchase 17 
T-39N aircraft. The conferees also agree with the House's 
direction for the Navy to transition to a competitive purchase 
of services contract for logistical support for the T-39N fleet 
after aircraft acquisition. However, the conferees direct that 
this transition should occur at the conclusion of the current 
T-39N contract, which is due to expire at the end of fiscal 
year 1998.

                                 ea-6b

      The conferees agree to provide $165,000,000 for 
modifications and improvements to the EA-6B electronic warfare 
aircraft. The funds are approved for the following purposes: 
$100,000,000 to modify 20 more aircraft to enable the Navy to 
support Air Force requirements; $40,000,000 to buy 60 shipsets 
of Band 9/10 jammer transmitters; and $25,000,000 to buy 30 
USQ-113 radio countermeasures sets. The conferees further agree 
to modify the Senate's direction to use prior year funds for 
the acquisition of Band 9/10 jammers, which is now not 
necessary because they have provided sufficient fiscal year 
1996 funds to procure these systems. The conferees urge the 
Navy to buy these systems expeditiously.

                           p-3 modifications

      The conferees agree with the Senate's direction regarding 
acquisition of the AN/AAQ-22 thermal imaging system and 
incorporation of that system into the P-3 Antisurface Warfare 
Improvement Program (AIP).

                          common ecm equipment

      The conferees support the use of the LAU-138/A launch 
rail chaff dispenser system on Navy tactical aircraft as a cost 
effective means for improving aircrew/aircraft survivability. 
The conferees direct that these systems be managed as fleet 
armament equipment pool assets to afford maximum flexibility 
and cost savings, and that all remaining prior year funds 
appropriated for these systems be expeditiously applied toward 
this purpose.

                        aviation multiyear fund

      The conferees do not agree to provide funds for an 
Aviation Multiyear Fund as proposed by the House. The Navy is 
therefore not required to solicit multiyear bids from E-2C, AV-
8B, and T-45 manufacturers, although it may do so if 
circumstances warrant.

                       Weapons Procurement, Navy

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
WEAPONS PROCUREMENT, NAVY                                                                                       
    TOMAHAWK....................         161,727         201,727         120,027             164         120,027
    AMRAAM......................          81,691          77,491          77,691             115          77,491
    HARPOON.....................          46,368          86,368          46,368              75          86,368
    DRONES AND DECOYS...........  ..............  ..............           7,000  ..............  ..............
    TOMAHAWK MODS...............             684          60,684             684             220          50,000
    WEAPONS INDUSTRIAL                                                                                          
     FACILITIES.................          13,094          13,094          43,094  ..............          43,094
    VERTICAL LAUNCHED ASROC                                                                                     
     (VLA)......................  ..............          14,000  ..............  ..............          10,000
    GENERAL PURPOSE BOMBS.......          46,142  ..............          39,142  ..............  ..............
    2.75 INCH ROCKETS...........          14,806  ..............          14,806  ..............  ..............
    MACHINE GUN AMMUNITION......          11,469  ..............          11,469  ..............  ..............
    PRACTICE BOMBS..............          11,195  ..............          11,195  ..............  ..............
    CARTRIDGES & CART ACTUATED                                                                                  
     DEVICES....................          17,974  ..............          17,974  ..............  ..............
    AIRCRAFT ESCAPE ROCKETS.....          10,586  ..............          10,586  ..............  ..............
    AIR EXPENDABLE                                                                                              
     COUNTERMEASURES............          22,828  ..............          22,828  ..............  ..............
    MARINE LOCATION MARKERS.....             871  ..............             871  ..............  ..............
    JATOS.......................           4,940  ..............           4,940  ..............  ..............
    5 INCH/54 GUN AMMUNITION....          21,501  ..............          21,501  ..............  ..............
    CIWS AMMUNITION.............              93  ..............              93  ..............  ..............
    76MM GUN AMMUNITION.........           6,432  ..............           6,432  ..............  ..............
    OTHER SHIP GUN AMMUNITION...           5,148  ..............           5,148  ..............  ..............
    SMALL ARMS & LANDING PARTY                                                                                  
     AMMO.......................           5,814  ..............           5,814  ..............  ..............
    PYROTECHNIC AND DEMOLITION..          11,253  ..............          11,253  ..............  ..............
    MINE NEUTRALIZATION DEVICES.             787  ..............             787  ..............  ..............
    SHIP EXPENDABLE                                                                                             
     COUNTERMEASURES............           8,871  ..............           8,871  ..............  ..............
----------------------------------------------------------------------------------------------------------------

            Procurement of Ammunition, Navy and Marine Corps

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, NAVY                                                                                 
 & MARINE CORPS                                                                                                 
    GENERAL PURPOSE BOMBS.......  ..............          46,142  ..............  ..............          43,000
    2.75 INCH ROCKETS...........  ..............          14,806  ..............  ..............          14,806
    MACHINE GUN AMMUNITION......  ..............          11,469  ..............  ..............          11,469
    PRACTICE BOMBS..............  ..............          26,195  ..............  ..............          19,000
    CARTRIDGES & CART ACTUATED                                                                                  
     DEVICES....................  ..............          17,974  ..............  ..............          17,974
    AIRCRAFT ESCAPE ROCKETS.....  ..............          10,586  ..............  ..............          10,586
    AIR EXPENDABLE                                                                                              
     COUNTERMEASURES............  ..............          24,828  ..............  ..............          24,828
    MARINE LOCATION MARKERS.....  ..............             871  ..............  ..............             871
    JATOS.......................  ..............           4,940  ..............  ..............           4,940
    5 INCH/54 GUN AMMUNITION....  ..............          51,701  ..............  ..............          36,000
    CIWS AMMUNITION.............  ..............              93  ..............  ..............              93
    76 MM GUN AMMUNITION........  ..............           6,432  ..............  ..............           6,432
    OTHER SHIP GUN AMMUNITION...  ..............          10,148  ..............  ..............          10,148
    SMALL ARMS & LANDING PARTY                                                                                  
     AMMO.......................  ..............           5,814  ..............  ..............           5,814
    PYROTECHNIC AND DEMOLITION..  ..............          11,253  ..............  ..............          11,253
    MINE NEUTRALIZATION DEVICES.  ..............             787  ..............  ..............             787
    SHIP EXPENDABLE                                                                                             
     COUNTERMEASURES............  ..............           8,871  ..............  ..............           8,871
    5.56 MM, ALL TYPES..........  ..............          28,487  ..............  ..............          28,487
    7.62 MM, ALL TYPES..........  ..............          12,082  ..............  ..............          12,082
    .50 CALIBER.................  ..............          66,688  ..............  ..............          45,000
    40 MM, ALL TYPES............  ..............           3,939  ..............  ..............           3,939
    60 MM HE M888...............  ..............           9,855  ..............  ..............           9,855
    81 MM HE....................  ..............           4,724  ..............  ..............           4,724
    81 MM, HE, M889A1...........  ..............  ..............  ..............  ..............          10,000
    81 MM SMOKE SCREEN..........  ..............           5,445  ..............  ..............           5,445
    81 MM ILLUMINATION (XM816)..  ..............           6,700  ..............  ..............           6,700
    120 MM TPCSDS-T M865........  ..............           8,902  ..............  ..............           8,902
    120 MM TP-T M831............  ..............           3,314  ..............  ..............           3,314
    155 MM CHG. PROP. RED BAG...  ..............          32,000  ..............  ..............          16,000
    FUZE, ET, XM762.............  ..............          10,000  ..............  ..............          10,000
    CTG 25 MM, ALL TYPES........  ..............           6,724  ..............  ..............           6,724
    9 MM ALL TYPES..............  ..............           2,979  ..............  ..............           2,979
    ROCKETS, ALL TYPES..........  ..............           7,034  ..............  ..............           7,034
    AMMO MODERNIZATION..........  ..............           9,611  ..............  ..............           9,611
    GRENADES, ALL TYPES.........  ..............           1,174  ..............  ..............           1,174
    ITEMS LESS THAN $2 MIL......  ..............          11,211  ..............  ..............          11,211
----------------------------------------------------------------------------------------------------------------

                        5 inch/54 gun ammunition

      The conferees agree to provide $36,000,000, an increase 
of $14,499,000 only for 5 inch/54 gun ammunition. Despite 
Congressional direction to correct the requirements process and 
provide adequate funding for fleet training ammunition, the 
Navy has chosen once again to provide insufficient funding. The 
conferees direct the Secretary of Navy to ensure that adequate 
funding is provided in subsequent budget requests for fleet 
training ammunition.

                   shipbuilding and conversion, navy

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                             Budget           House          Senate        Qty      Conference  
----------------------------------------------------------------------------------------------------------------
SHIPBUILDING & CONVERSION, NAVY                                                                                 
SSN-21.................................       1,507,477  ..............         700,000        1         700,000
NEW SSN (AP-CY) (NO. 2)................  ..............  ..............         100,000  .......         100,000
ENHANCED SSN CAPABILITY................  ..............       1,000,000  ..............  .......  ..............
DDG-51.................................       2,162,457       2,162,457       3,580,000        2       2,162,457
LHD-7 AMPHIBIOUS ASSAULT SHIP (MYP (AP-                                                                         
 CY)...................................  ..............  ..............       1,300,000  .......       1,300,000
PD-17..................................  ..............         974,000  ..............        1         974,000
FAST PATROL CRAFT......................  ..............           9,500  ..............  .......           9,500
T-AGS 64...............................  ..............          70,000  ..............  .......          16,000
LSD-52 SELF DEFENSE....................  ..............  ..............  ..............  .......          20,000
OUTFITTING.............................         144,791         134,791         144,791  .......         134,791
POST DELIVERY..........................         174,991         164,991         174,991  .......         164,991
----------------------------------------------------------------------------------------------------------------

                                 ddg-51

      The conferees agree with the House recommendation of 
$2,162,457,000 for the DDG-51 program, which will procure two 
destroyers. The conferees further provide legislative authority 
for the Secretary of the Navy to negotiate contracts for two 
additional DDG-51 class destroyers, and to award the contracts 
for those vessels on October 1, 1996. The conferees believe 
this acquisition strategy will generate increased economies of 
scale and stability for the Navy and the shipbuilding 
industrial base.

                     LPD-17 RCS Engineering Support

      The conferees note that as a result of the Base 
Realignment and Closure decisions, the Navy has reorganized and 
consolidated its Radio Communications Systems (RCS) 
engineering, production, testing, integration and training 
support activities. In assigning RCS engineering support 
workload for the LPD-17 class of ships, the conferees expect 
that the Navy will assign such workload to the most appropriate 
facility.

                                T-AGS-64

      The conferees agree to provide $16,000,000 for advance 
procurement for a T-AGS-64 multi-purpose oceanographic survey 
ship.

                                 LSD-52

      The conferees agree to provide $20,000,000 as recommended 
by the House for one additional SSDS MK-1 unit which the 
conferees direct be installed on LSD-52 during its construction 
prior to delivery of this vessel to the fleet.

                          SHIP COST ADJUSTMENT

      The conferees do not agree to the House proposal to 
modify the ship cost adjustment process by eliminating specific 
designations in the bill, providing new transfer authority, and 
providing reprogramming limitations. The conferees also do not 
agree to the House requirement to include ship cost adjustments 
in the annual omnibus reprogramming process.
      Within the ship cost adjustment implemented in section 
8091 of the Act, the conferees have allocated funds for 
potential settlement of claims on the AOE class of ships. This 
action is taken solely to facilitate the Navy's ability to 
implement a settlement, should one be reached.

                        Other Procurement, Navy

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, NAVY                                                                                         
    ELEC SUSPENDED GYRO                                                                                         
     NAVIGATOR..................           4,108  ..............           4,108  ..............  ..............
    OTHER NAVIGATION EQUIPMENT..          17,688          27,688          14,119  ..............          27,688
    MINESWEEPING EQUIPMENT......          12,985           6,985          12,985  ..............           6,985
    HM&E ITEMS UNDER $2 MILLION.          43,389          33,389          39,629  ..............          33,389
    FLEET MODERNIZATION PROGRAM.  ..............           3,000  ..............  ..............           3,000
    RADAR SUPPORT...............             466          14,466             466  ..............          14,466
    SURFACE ELECTRO-OPTICAL                                                                                     
     SYSTEM.....................           3,542           9,542           3,542  ..............           9,542
    SURFACE SONAR SUPPORT                                                                                       
     EQUIPMENT..................           9,349           9,349          19,609  ..............          19,609
    AN/SQQ-89 SURF ASW COMBAT                                                                                   
     SYSTEM.....................          30,297          30,297          25,297  ..............          25,297
    SSN ACOUSTICS...............          42,269          33,269          42,269  ..............          42,269
    SSTD........................          13,751          11,051          13,751  ..............          13,751
    C-3 COUNTERMEASURES.........           9,540          24,540           9,540  ..............          24,540
    NAVY TACTICAL DATA SYSTEM...             301          12,301             301  ..............          12,301
    ID SYSTEMS..................          10,202           9,702          10,202  ..............           9,702
    SHIPBOARD TACTICAL                                                                                          
     COMMUNICATIONS.............           6,635          12,935           6,635  ..............          12,935
    SATCOM SHIP TERMINALS.......          98,099          98,099         112,499  ..............         112,499
    SECURE DATA SYSTEM..........           8,636           8,636           6,037  ..............           6,037
    AN/SSQ-36 (BT)..............  ..............             200  ..............  ..............             200
    AN/SSQ-62 (DICASS)..........  ..............           4,090  ..............  ..............           4,090
    AN/SSQ-110 (EER)............  ..............          21,910  ..............  ..............          21,910
    WEAPONS RANGE SUPPORT                                                                                       
     EQUIPMENT..................          40,280          38,080          50,030  ..............          48,830
    LAMPS MK III SHIPBOARD                                                                                      
     EQUIPMENT..................          17,914          16,714          17,914  ..............          16,714
    DARP........................  ..............  ..............           4,500  ..............  ..............
    RAM GMLS....................          50,037          39,337          72,937  ..............          50,037
    SHIP SELF DEFENSE SYSTEM....          15,643          35,643          15,643  ..............          35,643
    SURFACE TOMAHAWK SUPPORT                                                                                    
     EQUIPMENT..................          71,293          71,293          51,293  ..............          61,293
    ANTI-SHIP MISSILE DECOY                                                                                     
     SYSTEM.....................          15,199           2,599          15,199  ..............           2,599
    FLEET MINE SUPPORT EQUIPMENT           4,452           4,452           6,152  ..............           6,152
    FORKLIFT TRUCKS.............           3,750           3,750           1,750  ..............           1,750
    COMPUTER ACQUISITION PROGRAM                                                                                
     (NSIPS)....................  ..............  ..............  ..............  ..............          13,000
    SAFETY AND SURVIVABILITY                                                                                    
     ITEMS......................  ..............          20,000  ..............  ..............          10,000
    SPARES AND REPAIR PARTS.....         210,213         210,213         170,713  ..............         190,213
----------------------------------------------------------------------------------------------------------------

                      HM&E Items Under $2,000,000

      The conferees agree to provide $33,389,000 for ``HM&E 
Items Under $2,000,000'', a reduction of $10,000,000. This 
decrease, which is applied against the Surface Ship Support 
Equipment portion, includes a reduction of $3,760,000 against 
the Gaseous Nitrogen Generator subproject.

                          fleet modernization

      The conferees agree to provide $3,000,000 for procurement 
of propeller shaft composite fairwaters to be backfit on CG 47 
class cruisers during overhaul.

                             radar support

      The conferees agree to provide $14,466,000 for the Radar 
Support program, an increase of $14,000,000. The increase 
includes $9,000,000 for the AN/BPS-16 submarine radar and 
$5,000,000 for the AN/SPA-25G Radar Display program.

                    surface sonar windows and domes

      The conferees agree to provide $6,000,000 for procurement 
of replacement sonar rubber domes and windows, provision of 
safety-related field service repair and change-out of this 
equipment, and product improvements to increase durability and 
service life.

                    weapons range support equipment

      The conferees agree to provide $48,830,000, an increase 
of $8,550,000, for Weapons Range Support Equipment program. The 
net increase includes a decrease of $1,200,000 for the 
Electronic Warfare Response Monitor subprogram and an increase 
of $9,750,000 as proposed by the Senate.

                   surface tomahawk support equipment

      The conferees agree to provide $61,293,000 for the 
Surface Tomahawk Support Equipment program, a reduction of 
$10,000,000. The reduction is against the Afloat Planning 
System (APS) subprogram. The conferees are concerned that the 
Navy does not currently have an operational doctrine for the 
tactical use of Tomahawk cruise missiles by ship commanders. 
Furthermore, the conferees question the need to deploy APS on 
all carriers in light of the Challenge Athena satellite 
communications project.

                            an/sps-48e radar

      The conferees direct that the funds previously 
appropriated for Pulse Doppler Mod Kits for AN/SPS-48E radars 
be released to the Navy. The modification of the radar will 
significantly improve its operational effectiveness when 
operating in littoral waters and therefore will improve the 
entire surface fleet's tactical situation awareness when it is 
incorporated into the Cooperative Engagement Capability. Given 
the vital link between these two programs, the conferees 
further direct that management and execution of the upgrade to 
the AN/SPS-48E radar program be conducted by the Program 
Executive Officer for Theater Air Defense.

                        procurement marine corps

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                        Budget       House        Senate      Qty     Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, MARINE CORPS:                                                                                      
    5.56 MM, ALL TYPES.............................       28,487  ...........       28,487  .......  ...........
    7.62 MM, ALL TYPES.............................        2,082  ...........       12,082  .......  ...........
    .50 CALIBER....................................        8,588  ...........       19,060  .......  ...........
    40 MM, ALL TYPES...............................        3,939  ...........        3,939  .......  ...........
    60 MM HE M888..................................        9,855  ...........        9,855  .......  ...........
    81 MM HE.......................................        4,724  ...........       11,724  .......  ...........
    81 MM, HE, M-889A1.............................  ...........  ...........       17,000  .......  ...........
    81 MM SMOKE SCREEN.............................        5,445  ...........        5,445  .......  ...........
    120 MM TPCSDS-T M865...........................        8,902  ...........        8,902  .......  ...........
    120 MM TP-T M831...............................        3,314  ...........        3,314  .......  ...........
    CTG 25 MM, ALL TYPES...........................        6,724  ...........        6,724  .......  ...........
    9 MM ALL TYPES.................................        2,979  ...........        2,979  .......  ...........
    GRENADES, ALL TYPES............................          474  ...........          474  .......  ...........
    ROCKETS, ALL TYPES.............................        7,034  ...........        7,034  .......  ...........
    AMMO MODERNIZATION.............................        9,611  ...........        9,611  .......  ...........
    ITEMS LESS THAN $2 MIL.........................        8,711  ...........       17,262  .......  ...........
    MODIFICATION KITS (TRKD VEH)...................        3,273       15,573       17,773  .......       15,573
    HAWK MOD.......................................        3,040        4,688        3,040  .......        3,040
    MANPACK RADIOS AND EQUIP.......................        9,735       12,735        9,735  .......       12,735
    MULTI-SERV ADF FIELD ART TACTICAL DATA SYS.....       12,140       23,140       23,140      188       12,140
    INTELLIGENCE SUPPORT EQUIPMENT.................        6,283       18,783        6,283  .......       35,283
    NIGHT VISION EQUIPMENT.........................        2,283        2,283        4,283  .......        4,283
    LIGHT RECON VEHICLE............................  ...........        2,000  ...........  .......  ...........
    TRAILERS.......................................        4,932       10,439       10,432  .......       10,432
    MODIFICATION KITS..............................        6,496        7,496        6,496  .......        7,496
    ITEMS LESS THAN $2 MIL.........................           75        1,975           75  .......           75
    PRECISION GUNNERY TRAINING SYSTEM..............  ...........        5,900  ...........  .......        5,900
    M240 MACHINE GUN MODS..........................  ...........        2,200  ...........  .......  ...........
    ASSET TRACKING LOGISTICS SYSTEM................  ...........       17,850  ...........  .......  ...........
    LIGHTWEIGHT COMPUTER UNITS.....................  ...........        3,800  ...........  .......  ...........
    F-15 POST PRODUCTION SUPPORT...................       13,955  ...........       13,955  .......        6,978
    F-16 POST PRODUCTION SUPPORT...................      194,672       94,672      158,572  .......      126,622
    OTHER PRODUCTION CHARGES.......................      167,676      167,676      188,576  .......      187,676
    DARP SUPPORT EQUIPMENT.........................      194,374      194,374      214,374  .......      194,374
----------------------------------------------------------------------------------------------------------------

                     intelligence support equipment

      The conferees agree to provide $35,283,000 for 
intelligence support equipment, an increase of $29,000,000. Of 
the increase, $16,500,000 is only for two JSTARS ground 
stations and $12,500,000 is only for Commander's Tactical 
Terminals.

                       right hand drive vehicles

      The conferees have reviewed the implementation of Public 
Law 100-370, which amended title 10 U.S.C. (2253) to limit the 
amount available for purchase of right hand drive vehicles to 
$12,000. The conferees agree that this limitation should only 
apply to the purchase of passenger sedans manufactured outside 
of the United States. Further, this limitation does not affect 
the use of any right hand drive vehicle provided as part of the 
local contribution towards the basing of U.S. forces in the 
Host Nation.

                    Aircraft Procurement, Air Force

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                             Budget           House          Senate        Qty      Conference  
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, AIR FORCE:                                                                                
    B-1B (MYP).........................          56,336          56,336         143,336  .......          56,336
    B-2A (MYP).........................         279,921         772,921         279,921  .......         772,921
    F-15E..............................  ..............         250,000         311,210        6         311,210
    F-15E ADV PROC.....................  ..............  ..............          50,190  .......          50,190
    F-16 C/D (MYP).....................  ..............          50,000         159,400        6         159,400
    F-16 C/D ADV PROC..................  ..............  ..............          15,400  .......  ..............
    C-17 (MYP).........................       2,402,491       2,402,491       2,412,491        8       2,412,491
    C-17 (MYP) (AP-CY).................  ..............  ..............         180,000  .......  ..............
    WC-130.............................  ..............  ..............         221,167        3         132,700
    STRATEGIC AIRLIFT..................         183,757         183,757          75,000  .......         183,757
    JPATS..............................          54,968          44,968          54,968        3          54,968
    E-8B...............................         394,634         394,634         371,334        2         377,434
    B-1B...............................          75,383          82,593          76,283  .......          58,483
    B-52...............................           4,908          24,908           4,908  .......           4,908
    F-117..............................          47,660          47,660          44,060  .......          47,660
    A-10...............................          79,424          79,424          33,324  .......          41,024
    F-15...............................          79,488          78,288          63,688  .......          78,288
    F-16...............................         118,606         118,606         118,606  .......         120,606
    C-5................................          45,431          51,631          45,431  .......          51,631
    C-130..............................          84,399          94,399          88,399  .......          94,399
    C-135..............................         142,764         334,764         251,264  .......         238,764
    DARP MODS..........................  ..............          79,000          48,000  .......          53,000
    SPARES AND REPAIR PARTS............         603,619         581,719         572,781  .......         586,281
    COMMON AGE.........................         216,048         212,510         223,248  .......         212,510
----------------------------------------------------------------------------------------------------------------

                           strategic airlift

      The conferees agree to provide $183,757,000 for strategic 
airlift, the amount of the budget request. It is the conferees' 
belief that the Defense Acquisition Board's upcoming decision 
on the optimal composition of the airlift fleet will require 
the continued production of C-17 aircraft. The conferees 
therefore direct that from the amount of funding provided for 
strategic airlift the Department of Defense must give first 
priority to fully funding advance procurement for continued 
production of C-17 aircraft in fiscal year 1997.

                           b-1b modifications

      The conferees agree to provide $68,483,000 for B-1B 
modifications, a decrease of $6,900,000 to the budget request. 
The amount provided by the conferees includes a decrease of 
$14,100,000 from cost savings for miscellaneous modifications 
and an increase of $7,200,000 for reliability and 
maintainability improvements identified during the B-1B 
operational readiness assessment. The conferees also agree with 
the Senate's reporting requirement about expanding the B-1B 
conventional mission upgrade program.

                                  a-10

      The conferees agree to provide $41,024,000, a decrease of 
$38,400,000 to the budget request for A-10 modifications. The 
deleted funds are excess to program requirements for fiscal 
year 1996.

                           f-15 modifications

      The conferees agree to provide $78,288,000, a decrease of 
$1,200,000 to the budget request for F-15 modifications. The 
conferees agree with the House reduction of funds for 
installation of landing gear wiring switch kits. The conferees 
do not agree with the Senate reduction of funds for a fighter 
data link modification. In restoring the $15,800,000 deleted by 
the Senate, the conferees direct that $9,000,000 may only be 
used to acquire Joint Tactical Information Distribution System 
(JTIDS) class II terminals for one squadron of F-15 aircraft. 
The remaining $6,800,000 is available only for the 
Multifunctional Information Distribution System (MIDS) variant 
project.
      The Under Secretary of Defense (Acquisition and 
Technology) has informed the conferees of the Defense 
Department's recent decision to meet the F-15 fighter data link 
(FDL) requirements through the MIDS program. The conferees 
understand that the Department intends full and open 
competition for FDL production. The conferees direct the Under 
Secretary to assure the congressional defense committees in 
writing that the use of MIDS architecture and software will not 
place U.S. companies at a competitive disadvantage. This 
assurance is required before release of the formal Request for 
Proposal for the F-15 fighter data link.

                           F-16 Modifications

      The conferees agree to provide $120,606,000 for F-16 
modifications, an increase of $2,000,000 to the budget request. 
The additional funding provided is only for initial acquisition 
of 600 gallon fuel tanks for destructive testing, evaluation 
and limited operational use.

                          C-130 Modifications

      The conferees agree to provide $94,399,000 for C-130 
modifications, an increase of $10,000,000 to the budget 
request. Of the additional funding provided by the conferees, 
$6,000,000 is only for threat defensive systems, and $4,000,000 
is only for acquisition of AN/AAQ-22 thermal imaging systems 
for 10 Air Force Reserve HC-130 aircraft, as recommended by the 
Senate.

                          C-135 Modifications

      The conferees agree to provide $238,764,000, for C-135 
modifications, an increase of $96,000,000 to the budget 
request. The additional funding provided by the conferees is 
only for continued reengining of the Air Guard and Reserve KC-
135 tanker fleet. The conferees have provided sufficient 
funding for four reengining kits.

                           DARP Modifications

      The conferees agree to provide $53,000,000 for Defense 
Airborne Reconnaissance Program (DARP) modifications, an 
increase of $53,000,000 to the budget request. Of the 
additional funding provided by the conferees, $48,000,000 is 
only for the acquisition of two RC-135 reengining kits and 
$5,000,000 is only for costs associated with the refurbishment 
of the SR-71 aircraft.

                    Aircraft Spare and Repair Parts

      The conferees agree to provide $586,281,000 for aircraft 
spare and repair parts, a decrease of $17,338,000 to the budget 
request. The amount of funding provided by the conferees 
includes a decrease of $21,900,000 for C-17 spares, a decrease 
of $8,938,000 for T-1 spares and an increase of $13,500,000 for 
F100-229 engine spares.

                   electronic warfare force structure

      The conferees strongly agree with Senate report language 
with respect to retaining at least 12 EF-111A Raven jammer 
aircraft in the primary aircraft inventory through fiscal year 
1999, and with the Senate directed reporting requirements.

                     Missile Procurement, Air Force

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate         Quantity       Conference  
----------------------------------------------------------------------------------------------------------------
MISSILE PROCUREMENT, AIR FORCE:                                                                                 
    HAVE NAP....................  ..............          39,000          38,000  ..............          38,000
    AMRAAM......................         190,672         178,366         182,672             291         182,672
    TARGET DRONES...............          39,150          36,150          39,150              88          36,150
    CONVENTIONAL ALCM...........  ..............          27,200  ..............             100          15,000
    GLOBAL POSITIONING (MYP)....         136,060         136,060         118,660               4         126,060
    GLOBAL POSITIONING (MYP) (AP-                                                                               
     CY)........................          38,412  ..............          33,412  ..............          33,412
    SPACE BOOSTERS..............         464,953         459,953         405,903  ..............         433,853
    MEDIUM LAUNCH VEHICLE.......         150,929         150,929         147,765               4         150,929
    DEF METEOROLOGICAL SAT PROG.          29,265          29,265          26,876  ..............          29,265
    DEFENSE SUPPORT PROGRAM                                                                                     
     (MYP)......................         102,911          67,011          61,375  ..............          67,011
    SPECIAL PROGRAMS............       1,605,765       1,483,565       1,573,765  ..............       1,210,765
    2.75 INCH ROCKET MOTOR......          10,402  ..............          10,402  ..............  ..............
    2.75 INCH ROCKET HEAD                                                                                       
     SIGNATURE..................           1,993  ..............           1,993  ..............  ..............
    ITEMS LESS THAN $2,000,000..             950  ..............             950  ..............  ..............
    5.56 MM.....................           5,534  ..............           5,534  ..............  ..............
    CARTRIDGE CHAFF RR-180......          10,030  ..............          10,030  ..............  ..............
    CARTRIDGE CHAFF RR-188......           1,192  ..............           1,192  ..............  ..............
    ITEMS LESS THAN $2,000,000..           5,162  ..............           5,162  ..............  ..............
    MK-82 INERT/BDU-50..........           8,253  ..............           8,253  ..............  ..............
    TIMER ACTUATOR FIN FUZE.....           6,242  ..............           6,242  ..............  ..............
    BOMB PRACTICE 25 POUND......           5,928  ..............           5,928  ..............  ..............
    MK-84 BOMB-EMPTY............           9,261  ..............           9,261  ..............  ..............
    SENSOR FUZED WEAPON.........         165,447  ..............         165,447  ..............  ..............
    CBU-89 GATOR INERT..........           6,531  ..............           6,531  ..............  ..............
    ITEMS LESS THAN $2,000,000..           1,500  ..............           1,500  ..............  ..............
    FLARE, IR MJU-7B............          21,859  ..............          21,859  ..............  ..............
    MJU-23 FLARE................           6,483  ..............           6,483  ..............  ..............
    MJU-10B.....................           7,204  ..............           7,204  ..............  ..............
    M-206 CARTRIDGE FLARE.......          11,250  ..............          11,250  ..............  ..............
    INITIAL SPARES..............             621  ..............             621  ..............  ..............
    REPLENISHMENT SPARES........           2,329  ..............           2,329  ..............  ..............
    MODIFICATIONS...............           2,340  ..............           2,340  ..............  ..............
    ITEMS LESS THAN $2,000,000..          11,289  ..............          11,289  ..............  ..............
    M-16 A2 RIFLE...............           5,048  ..............           5,048  ..............           5,048
----------------------------------------------------------------------------------------------------------------

                             space boosters

      The conferees agree to provide $433,853,000 for the 
procurement of the Titan IV heavy lift space booster, a 
decrease of $31,100,000 to the budget request. The 
recommendation makes the following reductions: $20,000,000 for 
no longer needed relocation costs; $6,100,000 for unadjudicated 
claims; $5,000,000 from contractor consolidation savings.

                  procurement of ammunition, air force

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate          Quanity       Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, AIR                                                                                  
 FORCE:                                                                                                         
    2.75 INCH ROCKET MOTOR......  ..............          10,402  ..............          30,000          10,402
    2.75,, ROCKET HEAD SIGNATURE  ..............           1,993  ..............          24,320           1,993
    ITEMS LESS THAN $2,000,000..  ..............             950  ..............  ..............             950
    5.56 MM.....................  ..............           5,534  ..............          13,835           5,534
    30 MM TRAINING..............  ..............          14,480  ..............           1,360           7,000
    CARTRIDGE CHAFF RR-180......  ..............          10,030  ..............             720          10,030
    CARTRIDGE CHAFF RR-188......  ..............           1,192  ..............             903           1,192
    ITEMS LESS THAN $2,000,000..  ..............           5,162  ..............  ..............           5,162
    MK-82 INERT/BDU-50..........  ..............           8,253  ..............          12,586           8,253
    TIMER ACTUATOR FIN FUZE.....  ..............           6,242  ..............          10,000           6,242
    BOMB PRACTICE 25 POUND......  ..............           5,928  ..............         400,000           5,926
    MK-84 BOMB EMPTY............  ..............           9,261  ..............           3,718           9,261
    SENSOR FUZED WEAPON.........  ..............         165,447  ..............             500         165,447
    CBU-89 GATOR INERT..........  ..............           6,531  ..............             236           6,531
    CBU (COMBINED EFFECTS                                                                                       
     MUNITIONS).................  ..............  ..............  ..............  ..............          30,000
    ITEMS LESS THAN $2,000,000..  ..............           1,500  ..............  ..............           1,500
    FLARE, IR MJU-7B............  ..............          21,859  ..............         945,049          21,859
    MJU-23 FLARE................  ..............           6,483  ..............           7,426           6,483
    MJU-10B.....................  ..............           7,204  ..............         110,436           7,204
    M-206 CARTRIDGE FLARE.......  ..............          11,250  ..............         331,564          11,250
    INITIAL SPARES..............  ..............             621  ..............  ..............             621
    REPLENISHMENT SPARES........  ..............           2,329  ..............  ..............           2,329
    MODIFICATIONS...............  ..............           2,340  ..............  ..............           2,340
    ITEMS LESS THAN $2,000,000..  ..............          11,289  ..............  ..............          11,289
    M-16 A2 RIFLE...............  ..............           5,048  ..............  ..............  ..............
----------------------------------------------------------------------------------------------------------------

                      Other Procurement, Air Force

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate         Quantity       Conference  
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, AIR FORCE:                                                                                   
    CBU-87 (COMBINED EFFECTS                                                                                    
     MUNITION)..................  ..............  ..............          30,000  ..............  ..............
    ARMORED SEDAN...............             202             202             260               1             260
    MODIFICATIONS...............             200             200           3,500  ..............           1,000
    ITEMS LESS THAN $2,000,000..           2,352          14,176           2,352  ..............          14,176
    THEATER AIR CONTROL SYS                                                                                     
     IMPROVEMENT................          32,345          32,345          27,745  ..............          27,745
    WATER OBSERV/FORCAST........           7,103           7,103          13,803  ..............          13,803
    DEFENSE SUPPORT PROGRAM.....          36,909          36,909          11,909  ..............          36,909
    STRATEGIC COMMAND AND                                                                                       
     CONTROL....................          67,596          67,596          58,095  ..............          58,095
    AUTOMATIC DATA PROCESSING                                                                                   
     EQUIP......................          23,958          32,458          23,958  ..............          23,958
    BASE LEVEL DATA AUTO PROGRAM          26,851          26,851          38,451  ..............          35,151
    BASE INFORMATION                                                                                            
     INFRASTRUCTURE.............          73,138          56,538          56,385  ..............          56,385
    MILSATCOM...................          43,362          43,362          13,207  ..............          43,362
    COMM ELECT MODS.............          20,424           9,724          20,424  ..............           9,724
    MOBILITY EQUIPMENT..........          17,670          31,770          29,570  ..............          29,570
    WARTIME HOST NATION SUPPORT.           1,699           1,699  ..............  ..............  ..............
    INTELLIGENCE PRODUCTION                                                                                     
     ACTIVITY...................          67,928          69,128          61,228  ..............          69,128
    SELECTED ACTIVITIES.........       5,409,357       5,117,657       5,189,357  ..............       4,904,257
----------------------------------------------------------------------------------------------------------------

                       Items Less Than $2,000,000

      The conferees agree to provide $14,176,000 for ``Items 
Less Than $2,000,000'', an increase of $11,874,000. The 
increase is provided only for those items identified by the Air 
Force as shortfalls.

                       Procurement, Defense-Wide

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, DEFENSE-WIDE                                                                                       
    DARP........................         179,307         161,975         179,307  ..............         161,575
    DEFENSE INFORMATION                                                                                         
     INFRASTRUCTURE.............          54,234          58,734          54,234  ..............          58,734
    CLASSIFIED PROGRAMS.........         844,903         858,903         766,403  ..............         763,190
SHIPBUILDING                                                                                                    
    PC, CYCLONE CLASS...........  ..............  ..............  ..............               1          20,000
    MK V SPECIAL OPERATIONS                                                                                     
     CRAFT (MK V SOC)...........          19,501          19,501          37,201               4          37,201
OTHER PROCUREMENT PROGRAMS                                                                                      
    SPECIAL WARFARE EQUIPMENT...          11,776          11,776           7,483  ..............           7,483
    LIGHT STRIKE VEHICLE........  ..............           6,000  ..............  ..............           6,000
----------------------------------------------------------------------------------------------------------------

                defense airborne reconnaissance program

      The conferees agree to provide $161,575,000 for 
procurement for the Defense Airborne Reconnaissance Program 
(DARP), a decrease of $17,732,000 to the budget request. The 
conferees support the Army's identified need for a short range 
unmanned air vehicle (UAV), but remain concerned with the 
continuing problems associated with the Hunter program. As a 
result, the conferees have denied funding for marinization of 
the Hunter UAV and direct that the remaining fiscal year 1996 
funds provided for Hunter not be obligated until the 
Appropriations Committees receive the results of the Defense 
Acquisition Board's review of the program. This review should 
include all options for fulfilling the Army's UAV requirement. 
The conferees further direct that use of these funds for any 
other purpose is to be handled through normal reprogramming 
procedures.

                      patrol craft--cyclone class

      The conferees agree to provide $20,000,000 for the 
procurement of one additional PC-Cyclone class operations 
patrol craft/vessel to continue to meet force requirements.

                          natural gas vehicles

      The conferees recommend the Department develop an 
implementation plan and a demonstration effort based on the 
1993 Navy study which specified natural gas vehicles as the 
vehicle of choice for achieving significant emission reductions 
on military bases.

                  National Guard and Reserve Equipment

      The conferees agree to provide $777,000,000 for National 
Guard and Reserve Equipment as proposed by the Senate instead 
of $980,125,000 as proposed by the House.
      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate         Quantity       Conference  
----------------------------------------------------------------------------------------------------------------
    NATIONAL GUARD & RESERVE                                                                                    
            EQUIPMENT                                                                                           
                                                                                                                
RESERVE EQUIPMENT:                                                                                              
ARMY RESERVE:                                                                                                   
    MISCELLANEOUS EQUIPMENT.....  ..............  ..............          90,000  ..............          90,000
    TACTICAL VEHICLES...........  ..............          52,000  ..............  ..............  ..............
    NIGHT VISION EQUIPMENT......  ..............           2,500  ..............  ..............  ..............
    ENGINEER EQUIPMENT..........  ..............          20,000  ..............  ..............  ..............
    VARI-REACH LIFT TRUCKS......  ..............           4,500  ..............  ..............  ..............
    MK-19 GRENADE LAUNCHERS.....  ..............           2,000  ..............  ..............  ..............
    MEDICAL EQUIPMENT...........  ..............           2,000  ..............  ..............  ..............
    3000 GPH ROWPU..............  ..............           3,000  ..............  ..............  ..............
    130T FLOATING CRANE.........  ..............           6,000  ..............  ..............  ..............
    PUSHER BOAT.................  ..............           5,000  ..............  ..............  ..............
    5 KW LIGHT TOWER............  ..............           5,000  ..............  ..............  ..............
    LASER LEVELING SYSTEMS......  ..............           4,000  ..............  ..............  ..............
    AUTOMATIC BUILDING MACHINES.  ..............           3,000  ..............  ..............  ..............
NAVY RESERVE:                                                                                                   
    MISCELLANEOUS EQUIPMENT.....  ..............          33,300          40,000  ..............          40,000
    F/A-18 UPGRADES.............  ..............          48,000  ..............  ..............  ..............
    MIUW TSQ-108................  ..............          40,000  ..............  ..............  ..............
MARINE CORPS RESERVE:                                                                                           
    MISCELLANEOUS EQUIPMENT.....  ..............          30,525          50,000  ..............          50,000
    CBT. VEHICLE TRAINER........  ..............           3,800  ..............  ..............  ..............
    CH-53 HELICOPTERS...........  ..............          50,000  ..............  ..............  ..............
    DIGITAL COMMAND & CONTROL                                                                                   
     NETWORK....................  ..............           4,300  ..............  ..............  ..............
    COMM COMPANY EQUIPMENT......  ..............           5,000  ..............  ..............  ..............
    UH-1N NAV/FLIR UPGRADES.....  ..............           5,000  ..............  ..............  ..............
AIR FORCE RESERVE:                                                                                              
    MISCELLANEOUS EQUIPMENT.....  ..............          30,300          40,000  ..............          40,000
    C-130H......................  ..............         135,600  ..............  ..............  ..............
                                                                                                                
    NATIONAL GUARD EQUIPMENT                                                                                    
                                                                                                                
ARMY NATIONAL GUARD:                                                                                            
    MISCELLANEOUS EQUIPMENT.....  ..............          15,000         100,000  ..............         100,000
    TACTICAL TRUCK NEW                                                                                          
     PROCUREMENT................  ..............          10,000  ..............  ..............  ..............
    TACTICAL TRUCK SLEP (5 TON).  ..............          10,000  ..............  ..............  ..............
    TACTICAL TRUCK SLEP (2\1/2\                                                                                 
     TON).......................  ..............          10,000  ..............  ..............  ..............
    M109 ACE....................  ..............          10,000  ..............  ..............  ..............
    IFTE........................  ..............          10,000  ..............  ..............  ..............
    NIGHT VISION EQUIPMENT......  ..............          10,000  ..............  ..............  ..............
    CHEM/BIO EQUIPMENT..........  ..............           5,000  ..............  ..............  ..............
    AH-1 (C-NITE)...............  ..............          10,000  ..............  ..............  ..............
    FADEC.......................  ..............          10,000  ..............  ..............  ..............
    AH-64 COMBAT MISSION                                                                                        
     SIMULATOR..................  ..............          15,000  ..............  ..............  ..............
    UH-1 SLEP...................  ..............          10,000  ..............  ..............  ..............
    AH-1 BORE SIGHT EQUIPMENT...  ..............           5,000  ..............  ..............  ..............
AIR NATIONAL GUARD:                                                                                             
    MISCELLANEOUS EQUIPMENT.....  ..............  ..............         $57,000  ..............          57,000
    F-16 220E ENGINES...........  ..............          10,000  ..............  ..............  ..............
    C-130H......................  ..............         203,400  ..............  ..............  ..............
    AIRLIFT DEFENSIVE SYSTEMS...  ..............          10,000  ..............  ..............  ..............
    AIRLIFT REPLACEMENT RADAR...  ..............           6,800  ..............  ..............  ..............
    C-130 MODS..................  ..............          15,000  ..............  ..............  ..............
    AUTOMATIC BUILDING MACHINES.  ..............           2,000  ..............  ..............  ..............
    F-16 RADAR WARNING RECEIVERS  ..............          36,200  ..............  ..............  ..............
DOD:                                                                                                            
    MISC EQUIPMENT (GUARD &                                                                                     
     RESERVE AIRCRAFT)..........  ..............  ..............         400,000  ..............         400,000
----------------------------------------------------------------------------------------------------------------

      The conferees agree to the Senate provision which 
requires the Chiefs of the Reserve and National Guard 
components to prepare and submit a modernization priority 
assessment for their respective Reserve and National Guard 
components and have established November 1, 1995 as the 
deadline for this submission.

                        miscellaneous equipment

      The conferees concur with the Senate position that the 
Reserves and National Guard should exercise control of funds 
provided for their modernization in this account with priority 
consideration for miscellaneous equipment appropriations given 
to the following items:
      Avenger, heavy truck modernization, radar warning 
receivers, laser leveling systems, AH-64 combat mission 
simulators, automatic building machines, HMMWVs, UH-60 
Upgrades, F-18 upgrades, 2\1/2\ ton truck ESP, UH-1 Huey SLEP, 
AH-1 (C-NITE), M-9 ACE, night vision equipment, IFTE, external 
fuel tanks, AN/AQS-14 airborne mine countermeasures, MIUW vans, 
modular airborne fire fighting systems, AH-1 borsighting 
devices, FADEC for UH-1 and CH-47, C-9 upgrades, small arms 
simulators, HC-130N conversions, M-915/916 heavy dump trucks, 
5-ton flatbed trailers, SQQ-T1 trainer, KC-135 re-engining, UH-
60Q helicopter upgrades, driver's night viewers, unmanned 
aerial vehicles, heavy equipment transport system, C-12 and C-
20 aircraft, CT-39 Navy/Marine Corps replacement aircraft, 
SINCGARS radios, and Medium Truck SLEP.
      The conferees also agree that while they have established 
a separate aircraft account, other aircraft may be purchased 
from the miscellaneous equipment account at the discretion of 
the Reserve and National Guard component chiefs.

                  national guard and reserve aircraft

      The conferees agree to provide $400,000,000 for the 
acquisition of aircraft to support Reserve and National Guard 
missions and agree that the following aircraft shall be 
purchased:

C-130 H for the Air Force Reserve and Air National Guard 
    (10)................................................    $339,000,000
CH-53E for the Marine Corps Reserve (2).................      50,000,000
C-26 for the Air National Guard (2).....................      11,000,000

                    information technology resources

      The conference agreement is as follows:

------------------------------------------------------------------------
  Appropriations and                                                    
       Programs             House            Senate         Conference  
------------------------------------------------------------------------
Operation and                                                           
 Maintenance, Army:                                                     
    EDCARS/DSREDS....           2,000                0            2,000 
Operation and                                                           
 Maintenance, Navy:                                                     
    NSIPS............           9,000                0            2,500 
Operation and                                                           
 Maintenance, Air                                                       
 Force:                                                                 
    Base Support.....         889,348          913,648          889,448 
      (CAMS).........              (0)           (+500)           (+500)
      (TICARRS)......              (0)        (+10,000)        (+10,000)
      (BLSM).........              (0)              (0)        (-10,400)
                                                                        
    Note: Conferees agree to House recommendations on CAMS, TICARRS, and
BLSM but have made the funding adjustments in the Base Support line     
rather than in the line proposed by the House.                          
                                                                        
    Information                                                         
     Technology......               0              100                0 
    EDCARS/DSREDS....           2,000                0            2,000 
Operation and                                                           
 Maintenance,                                                           
 Defensewide:                                                           
    Information                                                         
     Technology......         112,000                0           12,000 
      (JLSC).........       (+100,000)              (0)              (0)
      (DISA COOP)....        (+12,000)              (0)        (+12,000)
Operation and                                                           
 Maintenance, Army                                                      
 Reserve:                                                               
    RCAS.............          -4,000                0           -4,000 
Operation and                                                           
 Maintenance, Navy                                                      
 Reserve:                                                               
    NSIPS............           9,000                0            2,500 
Operation and                                                           
 Maintenance, Army                                                      
 National Guard:                                                        
    Information                                                         
     Management......          29,396           59,456           44,596 
      (RCAS).........        (-33,500)              (0)        (-18,300)
      (Distance                                                         
       Learning).....         (+3,400)              (0)         (+3,400)
Other Procurement,                                                      
 Army:                                                                  
    Automated Data                                                      
     Processing                                                         
     Equipment.......         130,151          132,751          138,751 
      (Distance                                                         
       Learning).....         (+9,600)              (0)         (+6,000)
      (General                                                          
       Reduction)....        (-12,000)              (0)              (0)
    RCAS.............         113,134           83,174          108,174 
Other Procurement,                                                      
 Navy:                                                                  
    NSIPS............               0                0           13,000 
Other Procurement,                                                      
 Air Force:                                                             
    Automatic Data                                                      
     Processing                                                         
     Equipment.......          32,458           23,958           23,958 
      (CAMS).........         (+4,000)              (0)              (0)
      (Equipment                                                        
       Management                                                       
       System).......         (+4,500)              (0)              (0)
    Base Level Data                                                     
     Automation......          26,851           38,451           35,151 
      (CMOS).........              (0)         (+3,250)              (0)
      (REMIS)........              (0)         (+8,300)         (+8,300)
Operation and                                                           
 Maintenance, Defense                                                   
 Wide:                                                                  
    Defense                                                             
     Information                                                        
     Infrastructure..          58,734           54,234           58,734 
      (DISA COOP)....         (+4,500)              (0)         (+4,500)
Research,                                                               
 Development, Test,                                                     
 and Evaluation, Air                                                    
 Force:                                                                 
    Advanced                                                            
     Computing                                                          
     Technology......          36,305           11,005           36,305 
      (BLSM transfer                                                    
       from O&M).....        (+10,400)              (0)        (+10,400)
      (IMDS).........        (+15,200)              (0)        (+15,200)
------------------------------------------------------------------------

                     joint logistics systems center

      The conferees do not agree to the House proposal to 
provide an additional $100,000,000 in the Operation and 
Maintenance, Defense-wide appropriation for the Joint Logistics 
Systems Center (JLSC). The conferees recognize that there is 
the potential for significant cost savings from effective 
logistics systems modernization, and believe that JLSC and its 
programs should remain a top priority. A September, 1995 report 
to the House Appropriations Committee by the Committee's 
Surveys and Investigations Staff, however, indicates that the 
JLSC is not properly organized to accomplish the redesign of 
the Department of Defense's logistics systems. The conferees 
direct that not more than half of the funds requested in the 
budget and appropriated for JLSC may be obligated until the 
Secretary of Defense has taken appropriate action to correct 
JLSC's organizational deficiencies and has designated the Air 
Force as the executive agency for the JLSC, which will remain 
the responsibility of the Deputy Undersecretary of Defense 
(Logistics) and will remain located at Wright-Patterson Air 
Force Base. The conferees further direct that the Secretary of 
Defense provide a report to the congressional defense 
committees by February 1, 1996 which explains his plan for 
improving the management of the Joint Logistics Systems Center, 
including improved levels of management, technical, 
contracting, and acquisition support.

               navy standard integrated personnel system

      The conferees have provided $18,000,000 as recommended by 
the House for the Navy Standard Integrated Personnel System 
(NSIPS). The additional funding is only for NSIPS as directed 
in House Report 104-208, page 134, except that $13,000,000 is 
appropriated in Other Procurement, Navy; $2,500,000 in 
Operation and Maintenance, Navy Reserve; and $2,500,000 in 
Operation and Maintenance, Navy. The conferees concur with the 
Department's plan to use a joint working group to define the 
functional and technical requirements for a standard military 
personnel management system. The conferees believe that 
parallel development of NSIPS is critical and direct the Navy, 
the Under Secretary of Defense for Personnel and Readiness, and 
the Assistant Secretary of Defense for C31 to continue NSIPS 
development and implementation as a joint Naval Reserve and 
active team project which will include the core capabilities 
required to support joint requirements for the objective DOD 
field level data collection personnel system. The conferees 
concur with the Department's decision to designate the Navy as 
executive agent for prototyping and testing these field level 
applications or core capabilities and the Air Force as the 
executive agent for the database.
      The conferees are aware of Navy needs to also continue to 
consolidate and integrate its headquarters personnel systems. 
The House previously directed that the Navy Military Personnel 
Distribution System (NMPD) central design authority (CDA) be 
assigned to the Enlisted Personnel Management Center (EPMAC) to 
assure the most efficient and cost effective development and 
maintenance of this system. The conferees understand that the 
Military Assignment, Selection, and Transfer System (MAST) has 
been conceived to modernize Naval personnel management by 
combining legacy systems and allowing these systems to operate 
in a more cost effective and client friendly environment. EPMAC 
has been identified as the technical expert possessing the 
expertise required to meet the development demands of MAST and 
NMPD systems. The conferees direct the Navy to assign CDA 
responsibilities, implementation, and funding functions to 
EMPAC for the MAST and NMPD systems by January, 1996, and that 
the transfer of the NMPD system to EPMAC be completed by 
September, 1996. The conferees direct the Navy to allocate the 
required funding to EPMAC in support of the MAST and NMPD 
system development to include hardware, software, and personnel 
requirements.
      The conferees concur with the House direction that the 
Department of the Navy place the collocated Naval 
Telecommunications and Communications Station (NTCS) functions 
and operations under the operational control and command of the 
Naval Reserve Information Systems Office, except that this 
direction shall only apply to the Central Design Agency 
functions and its related support functions and civilian 
personnel. The conferees direct that these functions continue 
to be supported through the Defense Business Operations Fund.

                         other defense agencies

      The conferees concur with the House direction provided in 
House Report 104-208, pages 136-137 regarding DISA megacenter 
outsourcing. The conferees are adamant that the reporting 
requirements and directions provided in the House report be 
followed by the Department of Defense. While the conferees may 
be able to support outsourcing some non-essential military 
functions and services prior to the completion of recommended 
base closing and realignment consolidations, the conferees 
expect the reporting requirements contained in the House report 
to occur first along with proper Congressional committee 
oversight.
      The conferees concur with the House National Security 
Committee efforts urging the Department of Defense to privatize 
or outsource non-essential military services such functions as 
civilian payroll and payroll-and-accounting for nonappropriated 
instrumentality functions. However, the conferees recommend the 
Department also look to franchising for these and other similar 
services from other Federal agencies that already provide 
similar, cost effective services. In this regard, the conferees 
urge the Department to proceed with the recommendation made in 
the statement of the managers accompanying the fiscal year 1995 
Defense Appropriations Act to initiate a prototype for using 
the National Finance Center cross servicing functions, in 
conjunction with existing DFAS and private operations in the 
area, for some financial management and personnel services at 
DOD as recommended by Military Department Comptrollers in 
January, 1994.

                  reserve component automation system

      The Army has spent eighteen years and close to a billion 
dollars without successfully providing modern computer 
technology to its Reserve Component. For the first time in the 
RCAS program's history, there now appears to be general 
consensus between the active Army, the National Guard, the Army 
Reserve, the Office of the Secretary of Defense, and the 
Congress on its future direction based on the restructure 
proposed by the Chief of the National Guard Bureau. Given this 
apparent consensus, there is no longer the need for legislation 
to accomplish the goals set out by the Congress for this 
program. The conferees therefore do not agree to retain bill 
language as proposed by the House. This action should not be 
construed as a diminution of Congressional support for RCAS, a 
Congressional authorization to change the program 
responsibilities of the Chief of the National Guard Bureau, or 
an invitation to the Army to change the program architecture to 
parallel or merge with active Army computer modernization 
programs. The funding provided in this Act is available solely 
to implement the restructured RCAS program as proposed by the 
Chief of the National Guard Bureau, endorsed by the Office of 
the Secretary of Defense in a formal Major Automated 
Information Systems Review Council, and recently presented to 
the Congress. All RCAS funds are hereby designated to be of 
special Congressional interest, any other use of which would 
require approval by the Congress through the formal 
reprogramming process; this would include the use of RCAS funds 
to modernize active Army systems or to finance codevelopment of 
new systems. The conferees agree to the certification 
requirements by the Assistant Secretary of Defense for Reserve 
Affairs in the House report.
      For many years, the Congress has denied the use of 
government furnished equipment and software in the RCAS system 
primarily because the Army would not identify it in advance to 
the Congress. The Chief of the National Guard Bureau has 
proposed the limited use of government furnished software in 
the restructured program. The Army has touted for many years 
the large amount of government furnished software that 
potentially could be used in RCAS. However, of the 16 existing 
Army information systems that will be examined for reuse in 
RCAS during fiscal year 1996, the Guard Bureau indicates that 
not even one is likely to have more than 14 percent of the 
software available for reuse. Many of these are also very old 
systems. The conferees wish to assure that software reuse is 
not done simply for its own sake or solely to satisfy the 
technical community. The conferees impose no restrictions on 
the use of government furnished software in the restructured 
program, but direct that the Program Executive Office for RCAS 
certify each time it tasks the RCAS contractor to use a 
significant amount of government furnished software that such 
action is the most cost-effective approach.
      Finally, for many years the Congress had a very tight 
restriction in law prohibiting the purchase of interim 
equipment outside of the RCAS program. The Reserve Components 
have recently disclosed that there are 12,000 modern computers 
which are available for the restructured program. The conferees 
direct the Inspector General of the Defense Department to 
conduct an investigation on how the Reserve Component was able 
to obtain such a large number of computers, whether any of 
these acquisitions violated law, and/or if anti-deficiency 
violations occurred.

          Title IV--Research, Development, Test and Evaluation

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
                  RECAPITULATION                                                                                
RDTE, ARMY......................................       4,444,175       4,742,150       4,639,131       4,870,684
RDTE, NAVY......................................       8,204,530       8,715,481       8,282,051       8,748,132
RDTE, AIR FORCE.................................      12,598,439      13,110,335      13,087,389      13,126,567
RDTE, DEFENSE-WIDE..............................       8,802,881       9,029,666       9,196,784       9,411,057
DEVELOPMENTAL TEST AND EVALUATION...............         259,341         259,341         246,082         251,082
OPERATIONAL TEST AND EVALUATION.................          22,587          22,587          22,587          22,587
                                                 ---------------------------------------------------------------
      GRAND TOTAL, RDTE.........................      34,331,953      35,879,560      35,474,024      36,430,109
                                                 ===============================================================
                  CATEGORY RECAP                                                                                
BASIC RESEARCH..................................         974,025         953,625         916,592         935,964
EXPLORATORY DEVELOPMENT.........................       2,722,753       2,855,416       2,836,736       2,907,381
ADVANCED DEVELOPMENT............................       3,693,547       3,318,907       3,370,626       3,624,055
DEMONSTRATION AND VALIDATION....................       2,664,245       3,018,253       2,780,156       2,983,101
ENGINEERING & MANUFACTURING DEVELOPMENT.........       8,239,924       8,602,411       8,599,378       8,579,080
RDT&E MANAGEMENT SUPPORT........................       3,119,546       3,103,818       3,112,963       3,130,779
OPERATIONAL SYSTEMS DEVELOPMENT.................      10,235,821      10,732,599      10,589,899      10,955,133
OTHER...........................................       2,682,092       3,294,531       3,267,674       3,314,616
                                                 ---------------------------------------------------------------
      TOTAL.....................................      34,331,953      35,879,560      35,474,024      36,430,109
                                                 ===============================================================
----------------------------------------------------------------------------------------------------------------

                         special interest items

      The conferees agree with the direction in the House 
report with respect to the identification and treatment of 
Congressional interest items and further direct that these 
requirements be imposed with respect to items so identified in 
the Senate report and in this Statement of the Managers.

            Research, Development, Test and Evaluation, Army

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL, ARMY:                                                                         
    DEFENSE RESEARCH SCIENCES...................         127,565         127,565         128,240         128,240
    UNIVERSITY AND INDUSTRY RESEARCH CENTERS....          62,715          62,715          39,016          49,779
    SENSORS AND ELECTRONIC SURVIVABILITY........          21,918          27,918          21,918          27,918
    AVIATION TECHNOLOGY.........................          20,381          20,381          18,470          18,470
    MISSILE TECHNOLOGY..........................          17,985          17,985          12,740          17,965
    MODELING AND SIMULATION.....................          23,770          23,770          20,526          20,526
    BALLISTICS TECHNOLOGY.......................          28,126          39,126          25,976          33,976
    ELECTRONICS AND ELECTRONIC DEVICES..........          17,525          19,025          20,525          22,025
    HUMAN FACTORS ENGINEERING TECHNOLOGY........          12,534          20,034          12,534          16,034
    ENVIRONMENTAL QUALITY TECHNOLOGY............          21,304          21,304          26,704          26,704
    COMMAND, CONTROL, COMMUNICATIONS TECHNOLOGY.          15,726          15,726          13,578          13,578
    MEDICAL TECHNOLOGY..........................          56,658          58,658          63,311          65,311
    LOGISTICS ADVANCED TECHNOLOGY...............          10,569          13,669           5,607           8,707
    MEDICAL ADVANCED TECHNOLOGY.................          11,760          88,760          18,535          95,535
    AVIATION ADVANCED TECHNOLOGY................          48,593          59,093          48,593          56,593
    WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY...          18,518          21,518          21,649          27,518
    COMBAT VEHICLE AND AUTOMOTIVE ADVANCED                                                                      
     TECHNOLOGY.................................          30,616          31,616          23,842          28,171
    COMMAND, CONTROL, COMMUNICATIONS ADVANCED                                                                   
     TECHNOLOGY.................................          16,922          16,922          28,922          28,922
    TRACTOR HIKE................................          14,588          31,588          14,588          24,588
    GLOBAL SURVEILLANCE/AIR DEFENSE/PRECISION                                                                   
     STRIKE TECHN...............................          39,824          39,824          38,324          38,324
    MISSILE AND ROCKET ADVANCED TECHNOLOGY......         123,913         126,413         108,913         118,913
    LANDMINE WARFARE AND BARRIER ADVANCED                                                                       
     TECHNOLOGY.................................          18,820          18,820          24,820          24,820
    NIGHT VISION ADVANCED TECHNOLOGY............          37,969          37,969          33,803          33,803
    ADVANCED TACTICAL COMPUTER SCIENCE AND                                                                      
     TECHNOLOGY.................................          33,989          33,989          28,952          28,952
    TRACTOR DUMP................................          15,025          15,025  ..............  ..............
    ARMY MISSILE DEFENSE SYSTEMS INTEGRATION                                                                    
     (DEM/VAL)..................................           2,985          30,785           2,985          23,985
    ARTILLERY PROPELLANT DEVELOPMENT............          10,946          30,546          21,646          21,946
    ARMORED SYSTEM MODERNIZATION--ADV DEV.......         201,513         201,513         176,513         191,513
    TACTICAL ELECTRONIC SUPPORT SYSTEMS--ADV DEV           2,937           5,937           2,937           5,937
    SOLDIER SUPPORT AND SURVIVABILITY...........          33,848          33,848           7,913           7,913
    AVIATION--ADV DEV...........................           8,430          14,430           8,430          14,430
    WEAPONS AND MUNITIONS--ADV DEV..............  ..............  ..............           1,000           1,000
    COMANCHE....................................         199,103         199,103         373,103         299,103
    ADVANCED MISSILE SYSTEM-HEAVY...............             995             995  ..............             995
    MEDIUM TACTICAL VEHICLES....................  ..............  ..............           1,500           1,500
    JAVELIN.....................................  ..............           2,000  ..............           1,000
    LANDMINE WARFARE............................          31,028          31,028          15,628          31,028
    HEAVY TACTICAL VEHICLES.....................  ..............           2,745  ..............           2,745
    ADVANCED COMMAND AND CONTROL VEHICLE (AC2V).          18,238          18,238          13,776          18,238
    LIGHT TACTICAL WHEELED VEHICLES.............           2,187           4,187           7,187           4,187
    ARMORED SYSTEMS MODERNIZATION (ASM)-ENG, DEV          38,465          43,825          40,065          40,065
    ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....          21,831          35,984          24,431          24,431
    NON-SYSTEM TRAINING DEVICES--ENG DEV........          55,303          55,303          50,703          52,303
    TACTICAL SURVEILLANCE SYSTEM--ENG DEV.......  ..............           3,100           3,000           3,000
    AIR DEFENSE COMMAND, CONTROL AND                                                                            
     INTELLIGENCE--ENG DE.......................          22,030          22,030          20,830          20,830
    AUTOMATIC TEST EQUIPMENT DEVELOPMENT........           5,437          15,437           5,437          15,437
    TRACTOR BAT.................................         193,303         200,303         193,303         200,303
    JOINT SURVEILLANCE/TARGET ATTACK RADAR                                                                      
     SYSTEM.....................................          18,771          18,771          28,271          28,271
    WEAPONS AND MUNITIONS--ENG DEV..............          15,928          17,528          16,428          18,028
    NON-COOPERATIVE TARGET RECOGNITION--ENG DEV.          30,466          30,466          14,139          22,466
    RAND ARROYO CENTER..........................          21,872          21,872          16,872          18,872
    DOD HIGH ENERGY LASER TEST FACILITY.........           3,000          24,808          35,000          35,000
    PROGRAMWIDE ACTIVITIES......................          63,649          63,649          59,400          63,649
    TECHNICAL INFORMATION ACTIVITIES............          16,401          16,401          13,837          13,837
    MUNITIONS STANDARDIZATION, EFFECTIVENESS AND                                                                
     SAFETY.....................................           6,903           6,903          18,103          18,103
    ENVIRONMENTAL COMPLIANCE....................          66,101          66,101          68,101          68,101
    BASE OPERATIONS--RDT&E......................         329,978         329,978         319,478         319,478
    MANAGEMENT HEADQUARTERS (RESEARCH AND                                                                       
     DEVELOPMENT)...............................           8,766           8,766          15,766          15,766
    MLRS PRODUCT IMPROVEMENT PROGRAM............          68,786          68,786          72,586          72,586
    ADV FIELD ARTILLERY TACTICAL DATA SYSTEM....          39,422          39,422  ..............          36,422
    COMBAT VEHICLE IMPROVEMENT PROGRAMS.........         197,669         198,978         202,694         215,003
    MANEUVER CONTROL SYSTEM.....................          38,327          51,327  ..............          51,327
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT                                                                       
     PROGRAM....................................           3,012           4,112           3,012           4,112
    DIGITIZATION................................          88,567          88,567  ..............         100,867
    MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT                                                                     
     PROGRAM....................................          17,069          26,869          68,869          64,869
    OTHER MISSILE PRODUCT IMPROVEMENT PROGRAMS..          57,949          57,949          65,499          65,499
    END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.  ..............          17,776          23,776          28,776
    TASK FORCE XXI..............................  ..............  ..............         184,456  ..............
    TASK FORCE XXI SOLDIER......................  ..............  ..............  ..............          30,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
University and Industry Research Centers........          62,715          62,715          39,016          49,779
    Electromechanics and hypervelocity physics..  ..............  ..............          -1,390  ..............
    Automotive Technology.......................  ..............  ..............  ..............          +2,000
    Federated Labs..............................  ..............  ..............         -22,309         -14,936
Ballistics Technology...........................          28,126          39,216          25,976          33,976
    Electric gun technology.....................  ..............          +9,000  ..............          +7,000
    Electrothermal-chemical tech (ETC)..........  ..............          +2,000  ..............          +1,000
    Self Protection System......................  ..............  ..............          -2,150          -2,150
Electronics and Electronic Devices..............          17,525          19,025          20,525          22,025
    Battery maintainer system...................  ..............          +1,500  ..............          +1,500
    Adv nonmetallic rechargeable battery........  ..............  ..............          +1,000          +1,000
    Low cost reusable alkaline batteries for                                                                    
     Sincgars...................................  ..............  ..............          +1,000          +1,000
    ``AA'' zinc air battery for military                                                                        
     application................................  ..............  ..............          +1,000          +1,000
Human Factors Engineering Technology............          12,534          20,034          12,534          16,034
    Medteams....................................  ..............          +4,000  ..............  ..............
    Rural Health................................  ..............          +3,500  ..............          +3,500
Medical Technology..............................          56,658          58,658          63,311          65,311
    Dengue fever................................  ..............  ..............          +1,000          +1,000
    Nutrition Research..........................  ..............  ..............          +1,775          +1,775
    Medteams....................................  ..............  ..............          +3,878          +3,878
    Wound Healing...............................  ..............          +2,000  ..............          +2,000
Logistics Advanced Technology...................          10,569          13,669           5,607           8,707
    Soldier Survivability.......................  ..............  ..............          -4,962          -4,962
    Ammunition logistics........................  ..............          +3,100  ..............          +3,100
Medical Advanced Technology.....................          11,760          88,760          18,535          95,535
    Nutrition research..........................  ..............  ..............          +1,775          +1,775
    Tissue replacement..........................  ..............  ..............          +5,000          +5,000
    Breat cancer................................  ..............         +75,000  ..............         +75,000
    Blood analyzer..............................  ..............          +2,000  ..............          +2,000
Aviation Advanced Technology....................          48,593          59,093          48,593          56,593
    Chinook helicopter SLEP.....................  ..............          +4,000  ..............          +4,000
    Starstreak evaluation [Note: The conferees                                                                  
     agree to Senate language regarding the                                                                     
     Starstreak funding strategy.]..............  ..............          +6,500  ..............          +4,000
Weapons and Munitions Advanced Tech.............          18,518          21,518          21,649          27,518
    Precision guided mortar munition............  ..............  ..............          +6,000          +6,000
    Large footprint sensor evaluation...........  ..............  ..............          -2,869  ..............
    XM-982 [Note: The conferees direct the Army                                                                 
     to assess the potential for accelerating                                                                   
     the XM-982 program and report findings to                                                                  
     the congressional defense committees no                                                                    
     later than January 15, 1995.]..............  ..............          +2,000  ..............          +2,000
    Electro-Rheological Fluid Recoil System.....  ..............          +1,000  ..............          +1,000
Combat Vehicle and Automotive Advanced Tech.....          30,616          31,616          23,842          28,171
    Armored vehicle self protection program                                                                     
     [Note: The conferees direct that the                                                                       
     additional funds are only for the                                                                          
     development of a tank system capable of                                                                    
     close in detection and destruction of high                                                                 
     velocity, low front-end radar cross-section                                                                
     threats such as KE rounds.]................  ..............          +1,000  ..............          +1,000
    Active protection concept...................  ..............  ..............          -3,329  ..............
    Combat vehicle-composites-future vehicle....  ..............  ..............          -3,445          -3,445
Missile and Rocket Advanced Technology..........         123,913         126,413         108,913         118,913
    EFOG-M......................................  ..............  ..............         -15,000          -7,500
    Low cost autonomous attack submunition......  ..............          +2,500  ..............          +2,500
Army Missile Defense Systems Integration........           2,985          30,785           2,985          23,985
    THEL........................................  ..............          +5,000  ..............  ..............
    Nautilus laser..............................  ..............          +5,000  ..............  ..............
    Battle integration center...................  ..............         +17,800  ..............         +21,000
Artillery Propellent Development................          10,946          30,546          21,646          21,946
    Unicharge...................................  ..............         +19,600         +10,700         +11,000
Armored System Modernization--Adv Dev...........         201,513         201,513         176,513         191,513
    FARV Adv development........................  ..............  ..............         -25,000         -10,000
Comanche [Note: The conferees do not agree to                                                                   
 House language regarding testing at Patuxent                                                                   
 River.]........................................         199,103         199,103         373,103         299,103
Non-System Training Devices--Eng Dev............          55,303          55,303          50,703          52,303
    FSCATT phase 1..............................  ..............  ..............          -3,000          -3,000
    STRICOM and Naval air warfare ctr training..  ..............  ..............          -1,600  ..............
Weapons and Munitions--Eng Dev..................          15,928          17,528          16,428          18,028
    XM 931 (120MM Practice).....................  ..............          +1,600  ..............          +1,600
    Universal brackets or MK19 grenade launchers  ..............  ..............            +500            +500
Non-Cooperative Target Recognition--Eng Dev.....          30,466          30,466          14,139          22,466
    Low cost BCIS study.........................  ..............  ..............          -1,091  ..............
    BCIS hardware build.........................  ..............  ..............         -15,236          -8,000
Base operations--RDT&E [Note: The conferees                                                                     
 direct that no part of the reduction may be                                                                    
 assessed against personnel.]...................         329,978         329,978         319,478         319,478
Combat Vehicle Improvement Program..............         197,669         198,978         202,694         215,003
    Abrams Improvement system enhancement pack..  ..............  ..............          -5,000  ..............
    Abrams Improvement GEN II FLIR/testing......  ..............  ..............          -5,000          -5,000
    Tractor Dump................................  ..............  ..............         +15,025         +15,025
    Abrams transfer.............................  ..............          +1,309  ..............          +1,309
    Test equipment..............................  ..............  ..............  ..............          +6,000
Digitization....................................          88,567          88,567  ..............         100,867
    EXFOR modernization.........................  ..............  ..............          +4,000          +4,000
    AWE--Warrior Focus..........................  ..............  ..............            +500            +500
    AWE--JWID...................................  ..............  ..............          +1,500          +1,500
    ASAS connectivity for TF XXI................  ..............  ..............          +3,300          +3,300
    TF XXI radios and displays..................  ..............  ..............          +5,000          +5,000
    Prior year carryover........................  ..............  ..............          -2,000          -2,000
Missile/Air Defense Product Improvement.........          17,069          26,869          68,869          64,869
    Stinger Block II............................  ..............          +9,800          +9,800          +9,800
    Avenger PIP.................................  ..............  ..............          +3,000          +3,000
    Starstreak evaluation.......................  ..............  ..............          +4,000  ..............
    Patriot anti-cruise missile upgrade.........  ..............  ..............         +35,000         +35,000
Other Missile Product Improvement Programs......          57,949          57,949          65,499          65,499
Hydra-70 PIP [Note: The conferees direct                                                                        
 increase is only for a competitive product                                                                     
 improvement program for the Hydra-70 rocket.]..  ..............  ..............         +10,000         +10,000
    Support and Management costs................  ..............  ..............          -2,450          -2,450
Industrial Preparedness Activities..............  ..............          17,776          23,776          28,776
    Transfer....................................  ..............         +17,776         +17,776         +17,776
    PAN fibers..................................  ..............  ..............          +4,000          +4,000
    Non-metallic rechargeable battery...........  ..............  ..............          +2,000          +2,000
    Instrumented Factory for Gears (INFAC)......  ..............  ..............  ..............          +5,000
----------------------------------------------------------------------------------------------------------------

                university and industry research centers

      The conferees have provided $49,779,000. Included in this 
amount is $22,847,000 for the Army's new federated labs 
program. The conferees direct that these funds may only be used 
to initiate the three federated lab programs which the Army 
determines are most important to its needs.
      The conferees are concerned that the Army's plan to enter 
into long term agreements could limit its ability to respond to 
new ideas and changes in the defense industry. Therefore, the 
conferees direct that the Army shall not enter into any 
federated lab agreement or contract which provides for the non-
competitive continuation of a federated lab for more than five 
years. The conferees further direct that the Assistant 
Secretary of the Army for Research, Development and Acquisition 
provide a report identifying the three fiscal year 1996 
federated labs, the participants, the allocation of funds, the 
management structure, and the planned research program by March 
1, 1996 to the congressional defense committees.

                             ew development

      The conferees understand that funds are included in the 
budget request for the development of an electronic protection 
system and encourage the Army to obligate up to $10,300,000 in 
fiscal year 1996 for the SHORTSTOP project.

                      medical advanced technology

      The conferees agree to provide $75,000,000 for the Army's 
peer reviewed breast cancer research program. The conferees 
expect the Army to provide special emphasis to research that 
addresses the specific needs of military beneficiaries.

             air defense command, control and intelligence

      The conferees provided $2,000,000 in fiscal year 1995 for 
the evaluation of the Air Defense Alerting Device (ADAD). The 
conferees direct the Department of Defense to release the 
fiscal year 1995 funds appropriated for ADAD and proceed with 
testing.

                         task force xxi soldier

      The conferees agree to provide $30,000,000 for a new 
project, Task Force XXI Soldier, to accelerate the development 
of integrated, modular equipment designed for the individual 
soldier. The Army's strategy to develop and field the interim 
Land Warrior system and then immediately begin production of 
the objective GEN II Soldier system appears to be an 
inefficient allocation of resources. The conferees believe that 
accelerating the GEN II soldier program will eliminate the need 
for an interim system allowing the Army to field a more capable 
system at an earlier date. Therefore, the conferees have 
consolidated funds from the existing programs to accelerate the 
GEN II Soldier program and provided additional funds to 
continue only the Land Warrior efforts necessary to support the 
objective program. The conferees direct the Assistant Secretary 
of the Army for Research, Development and Acquisition to 
provide a report defining a revised acquisition strategy to the 
congressional defense committees by March 1, 1996.

                      airborne reconnaissance low

      The conferees understand that upgrading the Airborne 
Reconnaissance Low (ARL) aircraft with the RAH-66 Comanche 
engine will significantly enhance operational capabilities and 
reduce support costs. Although no funds were requested in the 
fiscal year 1996 budget, the conferees encourage the Army to 
pursue upgrading the ARL engine in fiscal year 1997.

            Research, Development, Test and Evaluation, Navy

      The conference agreement is as follows:

------------------------------------------------------------------------
                         Budget       House        Senate     Conference
------------------------------------------------------------------------
RESEARCH DEVELOPMENT                                                    
 TEST & EVAL NAVY:                                                      
    DEFENSE RESEARCH                                                    
     SCIENCES.......      385,917      385,917      373,917      373,917
    SURFACE/                                                            
     AEROSPACE                                                          
     SURVEILLANCE                                                       
     AND WEAPONS                                                        
     TECHNOLOGY.....       32,658       36,658       30,658       34,658
    SURFACE SHIP                                                        
     TECHNOLOGY.....       36,786       46,786       37,860       62,860
    AIRCRAFT                                                            
     TECHNOLOGY.....       22,238       24,738       28,238       30,738
    READINESS,                                                          
     TRAINING, AND                                                      
     ENVIRONMENTAL                                                      
     QUALITY                                                            
     TECHNOLOGY.....       40,511       45,311       42,511       49,211
    MATERIALS,                                                          
     ELECTRONICS AND                                                    
     COMPUTER                                                           
     TECHNOLOGY.....       74,849       77,849       71,849       78,349
    UNDERSEA                                                            
     SURVEILLANCE                                                       
     WEAPON                                                             
     TECHNOLOGY.....       51,182       51,182       56,982       56,982
    MINE                                                                
     COUNTERMEASURES                                                    
     , MINING AND                                                       
     SPECIAL WARFARE       43,384       51,384       43,384       48,384
    OCEANOGRAPHIC                                                       
     AND ATMOSPHERIC                                                    
     TECHNOLOGY.....       45,526       60,526       49,476       58,376
    AIR SYSTEMS AND                                                     
     WEAPONS                                                            
     ADVANCED                                                           
     TECHNOLOGY.....       17,082       71,082       26,082       71,082
    MEDICAL                                                             
     DEVELOPMENT....       27,754       62,754       27,754       65,754
    ENVIRONMENTAL                                                       
     QUALITY AND                                                        
     LOGISTICS                                                          
     ADVANCED                                                           
     TECHNOLOGY.....       21,504       33,504       25,004       25,004
    UNDERSEA WARFARE                                                    
     ADVANCED                                                           
     TECHNOLOGY.....       51,816       51,816       45,170       48,483
    SHALLOW WATER                                                       
     MCM DEMOS......       50,958       25,000       46,565       40,958
    ADVANCED                                                            
     TECHNOLOGY                                                         
     TRANSITION.....       96,825       78,000       89,325       81,000
    AIR/OCEAN                                                           
     TACTICAL                                                           
     APPLICATIONS...       16,621       19,821       16,621       19,821
    AVIATION                                                            
     SURVIVABILITY..        7,477       16,377        7,477       16,377
    SURFACE AND                                                         
     SHALLOW WATER                                                      
     MINE                                                               
     COUNTERMEASURES       54,527       56,177       54,527       56,177
    ADVANCED                                                            
     SUBMARINE                                                          
     COMBAT SYSTEMS                                                     
     DEVELOPMENT....       21,281       28,181       21,281       28,181
    CARRIER SYSTEMS                                                     
     DEVELOPMENT....       16,164       16,164        9,226       12,764
    NON-ACOUSTIC                                                        
     ANTI SUBMARINE                                                     
     WARFARE (ASW)..  ...........  ...........       10,000       10,000
    ADVANCED                                                            
     SUBMARINE                                                          
     SYSTEM                                                             
     DEVELOPMENT....       35,748       55,748       35,748       55,748
    SUBMARINE                                                           
     TACTICAL                                                           
     WARFARE SYSTEMS        5,070        8,570        5,070        8,570
    SHIP CONCEPT                                                        
     ADVANCED DESIGN       16,736       53,736       16,736       53,736
    ADVANCED SURFACE                                                    
     MACHINERY                                                          
     SYSTEMS........       39,156       39,156       67,094       82,864
    MARINE CORPS                                                        
     GROUND COMBAT/                                                     
     SUPPORT SYSTEM.       46,733       46,733       46,733       50,933
    RETRACT MAPLE...       82,932       90,932       82,932       87,932
    LINK PLUMERIA...       17,879       21,579       17,879       21,579
    RETRACT ELM.....       32,561       32,561       31,561       31,561
    SHIP SELF                                                           
     DEFENSE........      245,620      365,120      245,620      332,620
    GUN WEAPON                                                          
     SYSTEM                                                             
     TECHNOLOGY.....       12,028       37,028       31,028       34,028
    JOINT ADVANCED                                                      
     STRIKE                                                             
     TECHNOLOGY--DEM/                                                   
     VAL............      149,295      143,795      123,272       83,795
    ASW AND OTHER                                                       
     HELO                                                               
     DEVELOPMENT....       91,803       80,175       99,636       89,636
    AV-8B AIRCRAFT--                                                    
     ENG DEV........       11,309       26,909       11,309       26,909
    S-3 WEAPON                                                          
     SYSTEM                                                             
     IMPROVEMENT....       12,872       27,872       12,872       12,872
    P-3                                                                 
     MODERNIZATION                                                      
     PROGRAM........        1,945       16,945        1,945       16,945
    TACTICAL COMMAND                                                    
     SYSTEM.........       27,389       27,389       24,750       24,750
    V-22A...........      762,548      762,548      757,548      757,548
    AIR CREW SYSTEMS                                                    
     DEVELOPMENT....        9,788       17,688        9,788       17,688
    EW DEVELOPMENT..       87,440       87,440       97,440       97,440
    AEGIS COMBAT                                                        
     SYSTEM                                                             
     ENGINEERING....      105,683       89,883       94,683       94,683
    STANDARD MISSILE                                                    
     IMPROVEMENTS...        8,572        2,572       18,572       18,572
    AIRBORNE MCM....       42,226       42,226       30,468       34,468
    ENHANCED MODULAR                                                    
     SIGNAL                                                             
     PROCESSOR......        8,342       14,842        8,342       14,842
    SUBMARINE COMBAT                                                    
     SYSTEM.........       43,302       37,151       43,302       43,302
    SUBMARINE                                                           
     TACTICAL                                                           
     WARFARE SYSTEM.       38,479       20,487       38,479       38,479
    NAVY TACTICAL                                                       
     COMPUTER                                                           
     RESOURCES......        5,499       15,499        5,499       15,499
    UNGUIDED                                                            
     CONVENTIONAL                                                       
     AIR-LAUNCHED                                                       
     WEAPONS........       40,517       43,517       94,517       53,517
    SHIP SELF                                                           
     DEFENSE........      165,997      201,997      179,297      207,297
    NAVIGATION/ID                                                       
     SYSTEM.........       56,472       56,472       51,104       54,104
    DISTRIBUTED                                                         
     SURVEILLANCE                                                       
     SYSTEM.........       93,507       93,507       93,507      103,507
    STUDIES AND                                                         
     ANALYSIS                                                           
     SUPPORT--NAVY..        9,281        7,000        7,781        7,000
    MANAGEMENT,                                                         
     TECHNICAL &                                                        
     INTERNATIONAL                                                      
     SUPPORT........       20,371       12,000       18,422       18,422
    STRATEGIC                                                           
     TECHNICAL                                                          
     SUPPORT........        3,584        3,000        3,584        3,000
    TEST AND                                                            
     EVALUATION                                                         
     SUPPORT........      245,911      247,911      237,911      239,911
    STRATEGIC SUB &                                                     
     WEAPONS SYSTEM                                                     
     SUPPORT........       39,511       39,511       36,609       36,609
    F/A-18 SQUADRONS      919,484      923,984      919,484      923,984
    E-2 SQUADRONS...       52,965       52,965       52,965       62,965
    TOMAHAWK AND                                                        
     TOMAHAWK                                                           
     MISSION                                                            
     PLANNING CENTER                                                    
     (TMPC).........      141,440      176,440      141,440      170,440
    INTEGRATED                                                          
     SURVEILLANCE                                                       
     SYSTEM.........       16,440       32,640       16,440       32,640
    CONSOLIDATED                                                        
     TRAINING                                                           
     SYSTEMS                                                            
     DEVELOPMENT....       48,058       51,058       65,058       68,058
    F-14 UPGRADE....       44,490       44,490       44,490       19,115
    MARINE CORPS                                                        
     COMBAT SERVICES                                                    
     SUPPORT........        3,915        6,915        3,915        7,415
    SATELLITE                                                           
     COMMUNICATIONS.       38,472       38,472       43,472       38,472
    INDUSTRIAL                                                          
     PREPAREDNESS...  ...........       88,000       41,251       88,000
    CLASSIFIED                                                          
     PROGRAMS.......      539,680      579,680      545,480      585,480
    GENERAL                                                             
     REDUCTION,                                                         
     UNIVERSITY LABS  ...........      -10,000  ...........      -10,000
    FREE ELECTRON                                                       
     LASER PROGRAM..  ...........        9,000  ...........        9,000
------------------------------------------------------------------------

                Explanation of Project Level Adjustments

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Surface/Aerospace Surveillance and Weapons                                                                      
 Technology.....................................          32,658          36,658          30,658          34,658
    Long Range Projectile.......................  ..............          +2,000  ..............          +2,000
    IPHTET/Rocket Propulsion....................  ..............          +2,000  ..............          +2,000
    Theater Defense.............................  ..............  ..............          -2,000          -2,000
Surface Ship Technology.........................          36,786          46,786          37,860          62,860
    Submarine Technology........................  ..............         +10,000  ..............         +10,000
    Submarine Signature Control/ Structural                                                                     
     Systems/ Power and Automation/ and                                                                         
     Maneuvering and Seakeeping.................  ..............  ..............          -4,926          -4,926
    Power Electronic Building Blocks............  ..............  ..............          +6,000          +6,000
    Curved Plate Technology.....................  ..............  ..............  ..............         +15,000
    ITEM for Embedded Test Procedures...........  ..............  ..............         (1,000)         (1,000)
    ITEM for Prototype Advanced Maintenance.....  ..............  ..............         (1,000)         (1,000)
Aircraft Technology.............................          22,238          24,738          28,238          30,738
    Helmet mounted displays.....................  ..............          +2,500  ..............          +2,500
    Vectored thrust ducted propeller technology.  ..............  ..............          +6,000          +6,000
Readiness, Training, and Environmental Quality                                                                  
 Technology.....................................          40,511          45,311          42,511          49,211
    Aircrew chemical-biological protection......  ..............          +4,800  ..............          +4,800
    MERTS.......................................  ..............  ..............          +2,000          +3,900
Materials, Electronic, and Computer Technology..          74,849          77,849          71,849          78,349
    Embedded sensors............................  ..............          +3,000  ..............          +3,000
    C-band telemetry/data link systems..........  ..............  ..............          -3,000          -3,000
    Distributed Manufacturing Demonstration                                                                     
     Project....................................  ..............  ..............  ..............          +3,500
Mine Countermeasures, Mining and Special Warfare          43,384          51,384          43,384          48,384
    RAMICS......................................  ..............          +8,000  ..............          +5,000
Oceanographic and Atmospheric Technology........          45,526          60,526          49,476          58,376
    Oceanographic research......................  ..............         +10,000  ..............         +10,100
    Mapping, charting, geodesy..................  ..............  ..............          +3,700              +0
    PM-10.......................................  ..............  ..............            +250            +250
    POAM-11.....................................  ..............          +5,000  ..............          +2,500
Medical Development.............................          27,754          62,754          27,754          65,754
    Bone marrow.................................  ..............         +24,000  ..............         +24,000
    Prostate cancer.............................  ..............          +7,500  ..............          +7,500
    DOD head injury.............................  ..............          +1,000  ..............          +1,000
    Blood storage...............................  ..............          +1,000  ..............          +1,000
    Naval Biodynamics Laboratory [Note: The                                                                     
     conferees agree to provide 3,000,000 only                                                                  
     for the Naval Biodynamics Laboratory                                                                       
     (NBDL). These funds are to maintain the                                                                    
     level of effort at NBDL so that the lab,                                                                   
     facilities, equipment, and records                                                                         
     (including data bases) can be transferred,                                                                 
     effective October, 1996, to a participating                                                                
     facility which is an integral part of the                                                                  
     Gulf Coast Region Maritime Technology                                                                      
     Center.]...................................  ..............          +1,500  ..............          +3,000
Undersea Warfare Advanced Technology............          51,816          51,816          45,170          48,493
    Shallow water surveillance advanced                                                                         
     technology--littoral warfare advanced                                                                      
     development................................  ..............  ..............          -6,646          -3,323
Shallow Water MCM Demonstrations................          50,958          25,000          46,565          40,958
    Budget growth...............................  ..............         -25,958  ..............         -10,000
    Advanced airborne target designator.........  ..............  ..............          -1,400  ..............
    C4I technology..............................  ..............  ..............          -1,468  ..............
    Surface surveillance, target acquisition and                                                                
     fire control...............................  ..............  ..............          -1,525  ..............
Advanced Technology Transition..................          96,825          78,000          89,325          81,000
    Budget growth...............................  ..............         -18,825  ..............         -18,825
    Tactical aircraft directed IR                                                                               
     countermeasures............................  ..............  ..............          -5,500  ..............
    Dual mission advanced missile airframe......  ..............  ..............          -5,000  ..............
    SLICE.......................................  ..............  ..............          +3,000          +3,000
Carrier Systems Development.....................          16,164          16,164           9,226          12,764
    Zonal electric distribution system..........  ..............  ..............          -2,000  ..............
    Aviation weapons information systems........  ..............  ..............          -1,538  ..............
    Multi-threat magazine protection system.....  ..............  ..............          -1,700          -1,700
    Integrated catapult/ski-jump................  ..............  ..............          -1,700          -1,700
Advanced Surface Machinery Systems..............          39,156          39,156          67,094          82,864
    ICR.........................................  ..............  ..............         +27,938         +41,008
    ICR statutory allocation....................  ..............  ..............        (45,458)             (0)
    Standard monitoring control system [Note:                                                                   
     Conferees agree to provide an additional                                                                   
     $2.7 million, a total of $6.2 million, for                                                                 
     the standard monitoring control system.]...  ..............  ..............  ..............          +2,700
Marine Corps Ground Combat Support System.......          46,733          46,733          46,733          50,933
    Light weight 155mm howitzer.................  ..............  ..............  ..............          +4,200
Ship Self Defense...............................         245,620         365,120         245,620         332,620
    NRL P-3.....................................  ..............         +26,500  ..............         +26,500
    Fleet P-3...................................  ..............         +11,500  ..............         +11,500
    E-2 CEC.....................................  ..............          +8,000  ..............          +5,500
    Patriot/THAAD/CORPSAM CEC...................  ..............         +20,000  ..............          +5,000
    Hawk CEC....................................  ..............         +15,000  ..............          +3,000
    AWACS CEC...................................  ..............         +10,000  ..............         +11,000
    National sensors CEC........................  ..............          +4,000  ..............          +4,000
    FACT high definition systems................  ..............          +4,500  ..............          +4,500
    Multisensor fusion (St. Inigoes)............  ..............          +4,000  ..............  ..............
    AN/UYQ-70...................................  ..............         +16,000  ..............         +16,000
Gun Weapon System Technology....................          12,028          37,028          31,028          34,028
    Naval surface fire support..................  ..............         +25,000         +19,000         +22,000
Joint Advanced Strike Technology................         149,295         143,795         123,272          83,795
    General reduction...........................  ..............         -25,500         -51,023         -65,500
    Engine competition..........................  ..............         +20,000  ..............  ..............
    A/F-117X [Note: Conferees direct that no                                                                    
     reduction be made to the $7 million                                                                        
     budgeted and appropriated for alternate                                                                    
     engine activities.]........................  ..............  ..............         +25,000  ..............
ASW and Other Helicopter Development............          91,803          80,175          99,636          89,636
    AH-1W.......................................  ..............         -11,628         -11,628  ..............
    ALFS........................................  ..............  ..............          -2,167          -2,167
    4BW/4BH.....................................  ..............  ..............         +21,628         +11,628
AV-8B...........................................          11,309          26,909          11,309          26,909
    Engineering and manufacturing development...  ..............         +15,600  ..............         +15,600
S-3 Weapon System Improvement Program...........          12,872          12,872          12,872          12,872
    Gray Wolf...................................  ..............         +15,000  ..............  ..............
P-3 Modernization Program.......................           1,945          16,945           1,945          16,945
    AIP.........................................  ..............         +12,000  ..............         +12,000
    Stores management...........................  ..............          +3,000  ..............          +3,000
Airborne Mine Countermeasures...................          42,226          42,226          30,468          34,468
    Airborne laser mine detection system [Note:                                                                 
     $18,262,000 is available only for Magic                                                                    
     Lantern.]..................................  ..............  ..............         -11,758          -7,758
Unguided Conventional Air Launched Weapons......          40,517          43,517          94,517          53,517
    SLAM-ER.....................................  ..............          +3,000  ..............          +3,000
    SLAM on Air Force platforms.................  ..............  ..............         +54,000         +10,000
Ship Self-Defense...............................         165,997         201,997         179,297         207,297
    Test ship...................................  ..............          +7,900  ..............          +7,900
    QRCC........................................  ..............          +2,500  ..............          +2,500
    ESM.........................................  ..............          +4,500  ..............          +4,500
    IRST........................................  ..............          +9,500          +9,500          +9,500
    SPQ-9.......................................  ..............          +4,800  ..............          +4,800
    ESSM........................................  ..............          +6,800          -8,200  ..............
    Multi-sensor integration....................  ..............  ..............          +4,000          +4,100
    NULKA.......................................  ..............  ..............          +8,000          +8,000
Distributed Surveillance System.................          93,507          93,507          93,507         103,507
    FDS--Deployable [Note: Conferees agree to                                                                   
     provide $10 million for refurbishment of an                                                                
     existing FDS-D and for procurement of                                                                      
     additional spare clusters.]................  ..............  ..............  ..............         +10,000
Studies and Analysis Support....................           9,281           7,000           7,781           7,000
    Growth......................................  ..............          -2,281  ..............            -781
    CVLA........................................  ..............  ..............          -1,500          -1,500
Test and Evaluation Support.....................         245,911         247,911         237,911         239,911
    NDI safety/survivability....................  ..............          +2,000  ..............          +2,000
    Program reduction [Note: Conferees direct                                                                   
     that no part of the general reduction shall                                                                
     be assessed against personnel.]............  ..............  ..............          -8,000          -8,000
F/A-18 Squadrons................................         919,484         923,984         919,484         923,984
    BOL chaff [Note: $4.5 million is only to                                                                    
     integrate BOL chaff on F/A-18C/D series                                                                    
     aircraft...................................  ..............          +4,500  ..............          +4,500
E-2 Squadrons...................................          52,965          52,965          52,965          62,965
    E-2 Radar Modernization Program.............  ..............  ..............  ..............         +10,000
Tomahawk and Tomahawk Mission Planning Center...         141,440         176,440         141,440         170,440
    Tomahawk Block IV...........................  ..............         +25,000  ..............         +25,000
    Joint targeting testbed [Note: $4 million                                                                   
     for testbed is only for studies.]..........  ..............         +10,000  ..............          +4,000
Consolidated Training Systems Development.......         +48,058         +51,058         +65,058         +68,058
    Outboard trainer............................  ..............          +3,000  ..............          +3,000
    PMRF shallow water range....................  ..............  ..............         +17,000         +17,000
F-14 Upgrade....................................          44,490          44,490          44,490          19,115
    JDAM integration............................  ..............  ..............  ..............         -25,375
Marine Corps Combat Services Support............           3,915           6,915           3,915           7,415
    All terrain vehicle.........................  ..............          +3,000  ..............  ..............
    Medium tactical vehicle replacement [Note:                                                                  
     Conferees direct that funds for the medium                                                                 
     tactical vehicle replacement may only be                                                                   
     used for the cargo variant.]...............  ..............  ..............  ..............          +3,500
Satellite Communications........................          38,472          38,472          43,472          38,472
    Commercial direct broadcast [Note: Conferees                                                                
     do not agree to the Senate language on the                                                                 
     global broadcast service.].................  ..............  ..............          +5,000  ..............
Industrial Preparedness.........................  ..............          88,000          41,251          88,000
    Transfer....................................  ..............         +41,251         +41,251         +41,251
    Generic increase............................  ..............         +36,749  ..............         +36,749
    Electro-optics [Note: The conference                                                                        
     agreement includes $10 million to continue                                                                 
     a multi-year effort in partnership with                                                                    
     U.S. manufacturers to develop advanced                                                                     
     electro-optic manufacturing technologies                                                                   
     aimed at developing lower cost and                                                                         
     technologically superior U.S. weaponry.                                                                    
     This program was authorized in the 1996                                                                    
     House National Defense Authorization bill.]  ..............         +10,000  ..............         +10,000
----------------------------------------------------------------------------------------------------------------

                           ship self-defense

      The conferees do not agree to the House bill language on 
ship self-defense programs, as there is now agreement between 
the Congress and the Defense Department on the direction of the 
affected programs. This action should not be construed as a 
diminution of Congressional support for achieving robust self-
defense capabilities on Navy ships, particularly on the LPD-17 
class, as soon as possible.

                        surface ship technology

      The conferees believe recent efforts to develop state-of-
the-art curved plate technology for constructing large double 
hull tankers hold promise to significantly reduce construction 
costs and provide an improved level of safety and performance 
for navy tanker vessels. The conference agreement includes 
$15,000,000 only to complete the development, design, 
construction and testing of full scale prototype equipment 
essential to evaluating and deploying this technology. Funds 
are to be used for detailed design and construction of full 
scale prototype equipment for curved plate panel forming, 
coating, subassembly and final welding.

                oceanographic and atmospheric technology

      The conferees agree to provide $10,000,000 for 
oceanographic research as recommended by the House. These funds 
are available only for collaborative research for the continued 
development, integration and application of cost-effective 
underwater multisensing systems (physical, chemical, optical, 
and acoustic) and unmanned underwater vehicles for continental 
shelf oceanographic measurements for mine countermeasures and 
other oceanographic applications, both fundamental and applied. 
These funds are to continue the project explained in House 
report 103-254, whose focus is on in-situ oceanographic 
sensors, fusion of multiple sensors, reconfigurability, 
interoperability to achieve low cost, reduced size and flexible 
payload/platform systems, adaptive capabilities for extended 
deployments, and navigation by self-convergent approaches using 
onboard sensors and intelligent control.

                    joint advanced strike technology

      Due to a recent restructure of the JAST program, there is 
now $131,000,000 in the fiscal year 1996 budget that is for 
work to be accomplished in fiscal year 1997. Such work should 
be budgeted in that year. The conferees agree to this reduction 
in the Navy and Air Force accounts, and direct that the Office 
of the Secretary of Defense ensure that the fiscal year 1997 
budget to Congress includes a restoration of these funds.

                            f/a-18 squadrons

      The conferees agree to provide an additional $4,500,000 
only for BOL chaff as recommended by the House. These funds are 
only to complete certification of the BOL chaff system on the 
F/A-18C/D series aircraft.

                             e-2 squadrons

      The conferees have provided an increase of $10,000,000 
only to support evaluation of technologies for an E-2 radar 
modernization program (RMP). The conferees support an expansion 
of current development and test efforts at a site which permits 
elevated testing of an ADS-18S antenna and is involved with 
evaluation of space time adaptive processing (STAP) algorithms. 
Based on analysis and testing completed to date, the Navy has 
concluded that upgrades to the E-2 can provide substantial 
warfighting improvements in a littoral environment. The 
conferees direct that the additional funds shall only be 
available for radar development work, antenna testing and site 
enhancements in conjunction with ongoing efforts.

                  lcac service life extension program

      The conferees agree to provide $37,000,000 as recommended 
by the House for advanced planning and engineering of a Landing 
Craft Air Cushion (LCAC) service life extension program. The 
program will include component improvements and structural 
modifications to reduce maintenance costs, meet increased lift 
requirements, and restore growth margins. Modifications will be 
incorporated into the last craft during production and into 
existing fleet craft beginning in fiscal year 1996 as an 
expansion of the current corrosion control effort.

              intercooled recuperative gas turbine engine

      The conferees agree to provide $41,008,000 for the 
continued development of the Intercooled Recuperative (ICR) gas 
turbine engine. This includes the amount requested in the 
budget and additional funds for the recuperator recovery plan 
and the U.S. test site.

                        navy range support ship

      In the process of restructuring its fleet of 
oceanographic research vessels, the Navy recently decided that 
the Kaimalino would not be part of the future Navy 
oceanographic fleet. The conferees are aware of a plan for the 
Pacific Missile Range Facility (PMRF) to acquire the Kaimalino 
to support operational training needs as well as research and 
development programs, such as Navy Upper and Lower Tier 
Patriot, and THAAD. The conferees believe this would be an 
effective use of the Kaimalino. The conferees direct the Navy 
to review PMRF's request and to report to the Committees on 
Appropriations prior to taking any other action on the ship. 
The conferees further direct that the reuse of the Kaimalino 
shall have no effect on other ships in the Navy's oceanographic 
fleet.

         RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL AF                                                                             
    DEFENSE RESEARCH SCIENCES...................         239,893         254,393         230,478         239,978
    MATERIALS...................................          74,534         71,000,          74,534          74,534
    AEROSPACE FLIGHT DYNAMICS...................          66,268          62,768          60,799          63,100
    HUMAN SYSTEMS TECHNOLOGY....................          90,311          86,911          75,311          86,911
    AEROSPACE PROPULSION........................          78,592          81,592          72,070          75,070
    AEROSPACE AVIONICS..........................          74,256          74,256          66,601          68,500
    HYPERSONIC TECHNOLOGY PROGRAM...............          19,900          19,900          16,900          19,900
    ADVANCED WEAPONS............................         124,446         130,446         130,746         136,746
    COMMAND CONTROL AND COMMUNICATIONS..........          98,477          96,477          98,477          96,477
    ADVANCED MATERIALS FOR WEAPON SYSTEMS.......          23,283          25,283          28,283          30,283
    CREW SYSTEMS AND PERSONNEL PROTECTION                                                                       
     TECHNOLOGY.................................          18,953          21,953          18,953          21,953
    ADVANCED AVIONICS INTEGRATION...............          20,421          17,621          20,421          17,621
    EW TECHNOLOGY...............................          25,079          20,079          25,079          22,579
    SPACE AND MISSILE ROCKET PROPULSION.........          15,203          20,203          15,203          20,203
    BALLISTIC MISSILE TECHNOLOGY................           3,085           8,785           8,085           8,785
     ADVANCED SPACECRAFT TECHNOLOGY.............          32,627          83,627          52,627          78,627
    CONVENTIONAL WEAPONS TECHNOLOGY.............          31,637          34,137          31,637          34,137
    ADVANCED RADIATION TECHNOLOGY...............          47,919          47,919          74,919          74,919
    CIVIL AND ENVIRONMENTAL ENGINEERING                                                                         
     TECHNOLOGY.................................           9,835           7,835           9,835           8,835
    ADVANCED COMPUTING TECHNOLOGY...............          11,005          36,605          11,005          36,605
    POLAR SATCOM................................  ..............  ..............          68,331          58,000
    NATIONAL POLAR-ORBITING OPERATIONAL                                                                         
     ENVIRONMENTAL SATE.........................          23,861          18,861          13,861          18,861
    SPACE BASED INFRARED ARCHITECTURE (SBIR)--                                                                  
     DEM/VAL....................................         130,744         230,744         265,744         265,744
    JOINT ADVANCED STRIKE TECHNOLOGY--DEM/VAL...         151,186         125,686          85,258          85,686
    INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.          20,265          20,265          31,765          31,765
    B-1B........................................         173,838         197,438         187,438         202,438
    C-17 PROGRAM................................          85,753          85,753          42,353          73,803
    F-22 EMD....................................       2,138,718       2,338,718       2,338,718       2,238,718
    NIGHT/PRECISION ATTACK......................           8,708           8,708          20,708          20,708
    SPACE BASED INFRARED ARCHITECTURE (SBIR)--                                                                  
     EMD........................................         152,219         152,219         162,119         172,219
    MILSTAR LDR/MDR SATELLITE COMMUNICATIONS....         649,666         649,666         591,666         577,666
    JOINT STANDOFF WEAPONS SYSTEMS..............          44,025          44,025          40,802          44,025
    COMPUTER RESOURCE TECHNOLOGY TRANSITION                                                                     
     (CRTT).....................................           2,166           2,166          20,366           9,166
    JOINT SURVEILLANCE/TARGET ATTACK RADAR                                                                      
     SYSTEM (JSTARS)............................         169,702         189,702         162,202         182,202
    SPACE TEST PROGRAM..........................          57,710          57,710          39,572          47,000
    THREAT SIMULATOR DEVELOPMENT................          53,377          53,377          65,877          58,877
    NAVIGATION/RADAR/SLED TRACK TEST SUPPORT....  ..............           3,000  ..............           3,000
    TEST AND EVALUATION SUPPORT.................         454,067         444,167         430,167         434,167
    ENVIRONMENTAL CONSERVATION..................          14,169           4,169          14,169           4,169
    ROCKET SYSTEMS LAUNCH PROGRAM (RSLP)........           5,949           5,949          22,749          22,749
    BASE OPERATIONS--RDT&E......................         117,083         120,683         126,983         123,983
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT                                                                       
     PROGRAM....................................         103,700         101,730         135,200         133,230
    B-52 SQUADRONS..............................          16,505          16,505          25,505          21,005
    F-16 SQUADRONS..............................         175,600         175,600         177,600         175,600
    F-15E SQUADRONS.............................         171,337         171,337         169,237         171,337
    MANNED DESTRUCTIVE SUPPRESSION..............           2,908           2,908          10,908          10,908
    JASSM.......................................  ..............  ..............          50,000          25,000
    ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE                                                                    
     (AMRAAM)...................................          42,311          50,311          37,211          47,311
    THEATER BATTLE MANAGEMENT (TBM) C4I.........          24,813          29,813          24,813          29,813
    ADVANCED SYSTEMS IMPROVEMENTS...............         105,548         105,548         105,548          63,748
    THEATER MISSILE DEFENSES....................          25,102          25,102          53,102          25,102
    SATELLITE CONTROL NETWORK...................          89,717          82,717          84,617          84,617
    TITAN SPACE LAUNCH VEHICLES.................         140,514         140,514         135,514         135,514
    NAVSTAR GLOBAL POSITIONING SYSTEM (SPACE AND                                                                
     CONTROL S).................................          26,921          26,921          25,921          25,921
    NCMC--TW/AA SYSTEM..........................          60,897          60,897          68,797          68,797
    SPACETRACK..................................          35,583          35,583          57,883          58,383
    DEFENSE SUPPORT PROGRAM.....................          43,672          43,672          37,441          37,441
    NUDET DETECTION SYSTEM......................          16,227          13,277          16,277          13,277
    INDUSTRIAL PREPAREDNESS.....................  ..............          53,332          60,932          60,932
    CLASSIFIED PROGRAMS.........................       3,203,479       3,310,979       3,249,279       3,339,129
----------------------------------------------------------------------------------------------------------------

                Explanation of Project Level Adjustments

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences.......................         239,893         254,393         230,478         239,978
    Center for Astronomical Adaptive Optics.....  ..............          +5,000          +5,000          +5,000
    Joint Seismic Research......................  ..............          +9,500  ..............          +9,500
    Program Reduction...........................  ..............  ..............         -14,415         -14,415
Aerospace Flight Dynamics.......................          66,268          62,768          60,799          63,100
    Aeromechanics...............................  ..............  ..............          -5,469          -3,168
Aerospace Propulsion............................          78,592          81,592          72,070          75,070
    Thermally Stable Jet Fuels..................  ..............          +3,000  ..............          +3,000
    Program Reduction...........................  ..............  ..............          -6,522          -6,522
Advanced Weapons................................         124,446         130,446         130,746         136,746
    Rocket Propulsion Technology................  ..............          +6,000  ..............          +6,000
    High Frequency Active Auroral Research......  ..............  ..............          +5,000          +5,000
    AEOS Spectrograph...........................  ..............  ..............          +1,300          +1,300
Advanced Materials for Weapon Systems...........          22,283          25,283          28,283          30,283
    Infrared Signature Control..................  ..............          +2,000  ..............          +2,000
    Metal Fatigue Monitoring Technology.........  ..............  ..............          +5,000          +5,000
Advanced Spacecraft Technology..................          32,627          83,627          52,627          78,627
    Reusable Launch Vehicle Technology..........  ..............         +50,000  ..............         +25,000
    Miniature Threat Reporting System...........  ..............          +1,000  ..............          +1,000
    Microsat....................................  ..............  ..............         +20,000         +20,000
B-1B............................................         173,838         197,438         187,438         202,438
    JDAM Integration............................  ..............          +7,000          +7,000          +7,000
    ECM Risk Reduction..........................  ..............          +6,600          +6,600          +6,600
    PGM.........................................  ..............         +10,000  ..............         +15,000
SBIR-EMD........................................         152,219         152,219         162,119         172,219
    Other Procurement Transfer..................  ..............  ..............          +9,900         +20,000
Computer Resource Tech Transition...............           2,166           2,166          20,366           9,166
    Software Design for Reliability and Reuse...  ..............  ..............          +3,000          +5,000
    CARDS.......................................  ..............  ..............  ..............          +2,000
    IMDS........................................  ..............  ..............         +15,200  ..............
Joint Surveillance/Target Attack Radar..........         169,702         189,702         162,202         182,202
    REA.........................................  ..............  ..............         -12,000         -12,000
    NATO JSTARS Project Office..................  ..............  ..............          +4,500          +4,500
    Data Link/Dissemination Technologies........  ..............         +20,000  ..............         +20,000
Aircraft Engine Component Improvement Program...         103,700         101,730         135,200         133,200
    B-2.........................................  ..............          -1,970  ..............          -1,970
    RC-135 Re-engining NRE......................  ..............  ..............         +31,500         +31,500
Threat Simulator Development....................          53,377          53,377          65,877          58,877
    ECIT Infrastructure.........................  ..............  ..............          -3,100          -3,100
    REDCAP......................................  ..............  ..............         +15,600          +8,600
Test and Evaluation Support.....................         454,067         444,167         430,167         434,167
    AF T&E Transfer.............................  ..............          -9,900          -9,900          -9,900
    Program Reduction [Note: The conferees                                                                      
     direct that no part of the reduction may be                                                                
     assessed against personnel.]...............  ..............  ..............         -14,000         -10,000
Base Operations--RDT&E..........................         117,083         120,683         126,983         123,983
    Test and Evaluation Transfer................  ..............          +9,900          +9,900          +9,900
    Growth Reduction............................  ..............          -6,300  ..............          -3,000
Satellite Control Network [Note: The conferees                                                                  
 direct the Air Force to use unobligated fiscal                                                                 
 year 1995 funds allocated for special projects                                                                 
 to fund fiscal year 1996 general program                                                                       
 requirements.].................................          89,717          82,717          84,617          84,617
Space Track.....................................          35,583          35,583          57,883          58,383
    Air Force Maui Optical Station..............  ..............  ..............          +5,300          +5,300
    Advanced Electro-Optical System (AEOS)......  ..............  ..............         +17,000         +17,000
    AEOS Site Characterization..................  ..............  ..............  ..............            +500
Defense Support Program [Note: The conferees                                                                    
 direct that the reduction shall only be                                                                        
 assessed against engineering change orders and                                                                 
 management support.]...........................          43,672          43,672          37,441          37,441
----------------------------------------------------------------------------------------------------------------

               space based infrared architecture--DEM/VAL

      The conferees agree to provide $265,744,000 for the 
demonstration/validation stage of the space based infrared 
architecture program, an increase of $135,000,000 to the budget 
request. The conferees have agreed to provide the additional 
$135,000,000 to accelerate development of the space missile 
tracking system (SMTS), formerly known as Brilliant Eyes. The 
additional funds provided for the program shall be used only 
for efforts identified jointly by both the Ballistic Missile 
Defense Organization and the Air Force to accelerate the 
deployment of SMTS.

                                  b-1b

      The conferees agree to provide $202,438,000 for the B-1B 
upgrade program, an increase of $28,600,000 to the budget 
request. The additional funding includes an increase of 
$7,000,000 for B-1B JDAM integration, an increase of $6,600,000 
for ECM risk reduction activities, and $15,000,000 for efforts 
to equip the bomber with precision guided munitions, including 
the B-1B virtual umbilical demonstration (BVUD). The conferees 
agree that none of the funding used for BVUD may be obligated 
until the Commander of the Air Combat Command and the Air Force 
Director of Operational Requirements certify to the 
appropriations committees that (a) a documented requirement for 
BVUD exists; and (b) that BVUD will be incorporated as part of 
the B-1B conventional upgrade program.
      The conferees also direct that the Commander of the Air 
Force Operational Test and Evaluation Center provide a report 
no later than March 15, 1996 on the test and evaluation plan 
for BVUD and other precision guided munitions demonstrations. 
Finally the conferees direct the Department of the Air Force to 
consider other available alternatives to providing precision 
guided capability for the Mk-82 munition with the additional 
funding provided.

                                  c-17

      The conferees agree to provide $73,803,000 for continued 
development of the C-17 advanced transport aircraft, a decrease 
of $11,950,000 to the budget request. The conferees direct that 
these funds be allocated as follows: flight test support, 
$17,850,000; T-1 refurbishment, $11,700,000; aircraft 
structural integrity, $11,000,000; mission support, 
$10,900,000; aircraft armor, $5,000,000; flight test hours, 
$4,000,000; automatic communications processor; $4,000,000; 
station-keeping equipment, $1,300,000; passenger oxygen mask 
improvements, $1,000,000; enhanced aeromedical litters, 
$1,000,000; cargo compartment heating, $600,000; troop seats, 
$553,000; GPS integrity monitoring, $500,000; airlift defensive 
system survivability study, $400,000; signature reduction 
study, $400,000.
      The conferees agree with Senate's direction regarding 
crew armor.

                sensor fuzed weapon product improvement

      The House and Senate both included $10,000,000 in their 
respective bills to begin a product improvement program for the 
Sensor Fuzed Weapon (SFW). The conferees direct the Air Force 
to program those funds required in the outyears to complete 
development of these improvements. Currently programmed SFW 
production funds shall not be used as a source for the required 
development funds. The conferees strongly urge the Air Force to 
begin this development as soon as possible and to examine ways 
to streamline and shorten the effort.
      The conferees also agree with the Senate requirement for 
a reevaluation, to be submitted no later than May 1, 1996, of 
total inventory needs for smart munitions.

             joint surveillance/target attack radar system

      The conferees agree with the Senate position regarding 
funds for both the Air Force and the Army to continue 
development and procurement of the Joint Surveillance/Target 
Attack Radar system, with the exception of restoring $6,100,000 
of the Senate recommended reduction to the Air Forces 
procurement request. The conferees direct that the restored 
funds are available only to pay over and above expenses for 
repair actions during aircraft refurbishment. The reduction 
recommended by the conferees shall only be assessed against the 
funds originally identified in budget justification materials 
as allocated for engineering change orders.
      In addition, the conferees direct that $12,000,000 in 
fiscal year 1995 research, development, test and evaluation 
funds allocated to an unadjudicated Request for Equitable 
Adjustment is only available to support fiscal year 1996 
development requirements.
      The conferees further agree with the Senate requirements 
regarding the NATO Alliance Ground Surveillance (AGS) program.

                             b-52 squadrons

      The conferees agree to provide $21,005,000 for B-52 
development, an increase of $4,500,000 to the budget request. 
The additional funding is only for integration of the AGM-130 
munition onto B-52 bombers. The conferees direct that not more 
than $1,000,000 may be obligated until the Secretary of the Air 
Force certifies that there is a validated operational 
requirement for the weapon and reports to the Committees on 
Appropriations about the annual and total costs, schedule, 
technical risks, and operational considerations of such 
integration.

                 joint-air-to-surface standoff missile

      The conferees agree to provide $25,000,000 to initiate 
the Joint-Air-to-Surface Standoff Missile (JASSM) program. The 
conferees agree to the Senate requirements regarding a report 
and a cost and operational effectiveness analysis. However, the 
Senate proposed obligation restrictions are not required. The 
required report is due no later than June 1, 1996.

                      threat simulator development

      The conferees direct that none of the funds available for 
the Real-Time Electromagnetic Digitally Controlled Analyzer and 
Processor (REDCAP) may be used to fund any activities which 
would produce permanent improvements which could not be 
relocated in accordance with the Base Realignment and Closure 
(BRAC) decision to move this facility.

        Research, Development, Test and Evaluation, Defense-Wide

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL DEFWIDE                                                                        
    DEFENSE RESEARCH SCIENCES...................          89,732          84,732          86,332          81,332
    UNIVERSITY RESEARCH INITIATIVES.............         236,165         221,165         231,165         231,165
    FOCUSED RESEARCH INITIATIVES................          14,009           9,009  ..............           9,009
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....          23,947          28,547          23,947          28,547
    COUNTERPROLIFERATION SUPPORT................           9,952          14,452           9,952          14,452
    MEDICAL FREE ELECTRON LASER.................          13,258          13,258          26,258          26,258
    LINCOLN LABORATORY RESEARCH PROGRAM.........          19,903          10,000          19,903          12,903
    COMPUTING SYSTEMS AND COMMUNICATIONS                                                                        
     TECHNOLOGY.................................         403,875         402,876         372,525         396,325
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....          60,665          84,165          58,515          68,515
    TACTICAL TECHNOLOGY.........................         113,168         132,168         117,718         130,718
    INTEGRATED COMMAND AND CONTROL TECHNOLOGY...          48,000          50,000          48,000          50,000
    MATERIALS AND ELECTRONICS TECHNOLOGY........         226,045         236,045         235,145         248,145
    DEFENSE NUCLEAR AGENCY......................         219,003         231,703         237,003         237,703
    DEFENSE HEALTH RESEARCH AND DEVELOPMENT.....  ..............  ..............         120,000          20,000
    NATIONAL MISSILE DEFENSE--DEM/VAL...........         370,621         820,621         670,621         745,621
    CORPS SURFACE-TO-AIR MISSILE--TMD--DEM/VAL..          30,442          20,442  ..............          20,442
    SUPPORT TECHNOLOGIES/FOLLOW-ON TECHNOLOGIES--                                                               
     ADVANCE....................................          79,387          79,387         149,387         129,387
    OTHER THEATER MISSILE DEFENSE/FOLLOW-ON TMD                                                                 
     ACTIVITIES.................................         460,470         423,470         475,470         438,470
    BALLISTIC MISSILE DEFENSE RDT&E PROGRAM                                                                     
     MANAGEMENT AND.............................         185,542         165,542         155,542         155,542
    PATRIOT PAC-3 THEATER MISSILE DEFENSE                                                                       
     ACQUISITION--EM............................         247,921         247,921         352,421         352,421
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--                                                                 
     TMD--EMD...................................  ..............          50,000  ..............  ..............
    COUNTERTERROR TECHNICAL SUPPORT.............          12,044          24,044          12,044          18,244
    COUNTERPROLIFERATION SUPPORT--ADV DEV.......          55,331          55,331          65,331          65,331
    ASAT PROGRAM................................  ..............  ..............          30,000          30,000
    JOINT DOD-DOE MUNITIONS TECHNOLOGY                                                                          
     DEVELOPMENT................................          16,799          16,799          21,799          21,799
    EXPERIMENTAL EVALUATION OF MAJOR INNOVATIVE                                                                 
     TECHNOLOGIES...............................         618,005         671,006         576,405         613,705
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--                                                                   
     ADVANCED DEV...............................          25,684          38,284          21,686          35,684
    ADVANCED SUBMARINE TECHNOLOGY...............           7,473          30,473          13,973          30,473
    DEFENSE REINVESTMENT........................         500,000  ..............         238,000         195,000
    STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM....          58,435          58,155          58,435          58,156
    JOINT TECHNOLOGY INSERTION PROGRAM..........           4,976           4,976  ..............           3,476
    CALS INITIATIVE.............................           6,545           6,545          25,745          25,745
    COOPERATIVE DOD/VA MEDICAL RESEARCH.........  ..............  ..............          25,000          25,000
    ADVANCED ELECTRONICS TECHNOLOGIES...........         419,863         434,863         388,718         409,018
    SEMICONDUCTOR MANUFACTURING TECHNOLOGY......          89,554  ..............          89,554          39,000
    MARITIME TECHNOLOGY.........................          49,657          63,957          49,657          49,657
    ELECTRIC VEHICLES...........................  ..............  ..............          15,000          15,000
    ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS..          63,251          32,251          59,851          48,251
    HIGH PERFORMANCE COMPUTING MODERNIZATION                                                                    
     PROGRAM....................................          89,682          89,682         119,682         119,682
    INDUSTRIAL PREPAREDNESS MANUFACTURING                                                                       
     TECHNOLOGY.................................           7,007           7,007  ..............  ..............
    JOINT ADVANCED STRIKE TECHNOLOGY--DEM/VAL...          30,675          30,675          18,775          30,678
    JOINT ROBOTICS PROGRAM......................          17,382          22,382          23,115          22,382
    ADVANCED SENSOR APPLICATIONS PROGRAM........          25,923          35,923          25,923          25,923
    NATO RESEARCH AND DEVELOPMENT...............          45,642  ..............          28,500          23,500
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--DEM/                                                               
     VAL........................................          32,461          36,861          29,661          34,061
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--EMD          95,324         107,324          91,617          91,617
    GENERIC LOGISTICS R&D TECHNOLOGY                                                                            
     DEMONSTRATIONS.............................          16,800          16,800          12,300          12,300
    TECHNICAL STUDIES, SUPPORT AND ANALYSIS.....          39,302          24,302          24,372          34,302
    TECHNICAL ASSISTANCE........................           4,927           4,927  ..............  ..............
    SMALL BUSINESS INNOVATIVE RESEARCH                                                                          
     ADMINISTRATION.............................           1,574           1,574  ..............           1,574
    DEFENSE SUPPORT ACTIVITIES..................          14,752          14,752          17,752          17,752
    COUNTERDRUG INTELLIGENCE SUPPORT............  ..............  ..............           7,000           7,000
    INDUSTRIAL PREPAREDNESS.....................  ..............  ..............           7,007           7,007
    INFORMATION SYSTEMS SECURITY PROGRAM........          23,884          23,884          17,414          17,414
    DMA MAPPING, CHARTING, AND GEODESY (MC&G)                                                                   
     PRODUCTIONS................................          80,131          80,131          92,745          74,745
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.....         515,148         612,048         391,148         604,448
    C3I INTELLIGENCE PROGRAMS...................           7,907           7,907           9,907           9,907
    SPECIAL OPERATIONS ADVANCED TECHNOLOGY                                                                      
     DEVELOPMENT................................          13,288          14,788          19,288          15,788
    SPECIAL OPERATIONS TACTICAL SYSTEMS                                                                         
     DEVELOPMENT................................         101,602         105,602         109,895         112,395
    CLASSIFIED PROGRAMS.........................       1,194,090       1,188,421       1,227,090       1,225,601
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences.......................          89,732          84,732          86,332          81,332
    Authorization adjustments...................  ..............          -5,000  ..............          -5,000
    Material Sciences--Bioremediation...........  ..............  ..............          -3,400          -3,400
University Research Initiatives.................         236,165         221,165         231,165         231,165
    Authorization adjustment....................  ..............  ..............         -15,000  ..............
    Combat readiness research...................  ..............  ..............         +10,000         +10,000
    DEPSCOR.....................................  ..............         +20,000        (20,000)         +20,000
    Reduction...................................  ..............         -35,000  ..............         -35,000
Focused Research Initiatives [Note: The                                                                         
 conferees agree to provide $9,009,000 for                                                                      
 Focused Research Initiatives. The conferees                                                                    
 agree that priority should be given to new                                                                     
 materials research and continuing programs                                                                     
 already initiated in conjunction with the                                                                      
 National Medical Technology Testbed.]..........          14,009           9,009  ..............           9,009
    Program reduction or deferral...............  ..............  ..............         -14,009  ..............
Computing Systems and Communications Technology.         403,875         402,875         372,525         396,325
    Planning and decision aids..................  ..............  ..............          -3,200  ..............
    Human computer interaction..................  ..............  ..............          -6,100  ..............
    Evoluntary design of complex software.......  ..............  ..............          -4,000  ..............
    High Performance Computing Defense Info                                                                     
     enterprise.................................  ..............  ..............         -24,800  ..............
    Defensive Information Warfare...............  ..............  ..............          -5,000          -5,000
    Interoperative Intelligent Metacomputing                                                                    
     Testbed....................................  ..............  ..............          +8,000          +8,000
    Asset Source for Software Engineering                                                                       
     Technology.................................  ..............  ..............          +3,750          +3,750
    Nuclear Monitoring Technology...............  ..............         +11,000  ..............         +11,000
    Software Managers Network...................  ..............         +10,000  ..............         +10,000
    Natural Language Text.......................  ..............          +5,000  ..............          +5,000
    Global Broadcast Service....................  ..............          +8,000  ..............          +8,000
    Seismic Monitoring Research.................  ..............         -10,000  ..............  ..............
    High Performance Computing..................  ..............         -25,000  ..............         -35,000
    Program Reduction...........................  ..............  ..............  ..............         -13,300
Chemical and Biological Defense System..........          60,665          84,165          58,515          68,515
    House Authorization Increase................  ..............         +23,500  ..............         +10,000
    Non medical chem/bio defense and gen/                                                                       
     investment.................................  ..............  ..............          -2,150          -2,150
Tactical Technology.............................         113,168         132,168         117,718         130,718
    Tactical Landing System.....................  ..............          +7,000          +6,450          +6,450
    Multiple Object Tracking Sensor System......  ..............          +7,000  ..............          +7,000
    Simulation Based Design.....................  ..............          +5,000  ..............          +5,000
    Naval Warfare Technology....................  ..............  ..............          -4,000          -3,000
    Aglie Warrior...............................  ..............  ..............          -4,900          -4,900
    Center of Excellence for Research in Ocean                                                                  
     Sciences...................................  ..............  ..............          +7,000          +7,000
Integrated Command and Control Technology.......          48,000          50,000          48,000          50,000
    Digital Camera..............................  ..............          +2,000  ..............          +2,000
    Field Emission Display [Note: The conferees                                                                 
     agree that $5,000,000 is to be made                                                                        
     available only for plasma enhanced chemical                                                                
     vapor deposition equipment and for                                                                         
     development of manufacturing systems in a                                                                  
     cluster tool format specifically tailored                                                                  
     for field emission display (FED)                                                                           
     production.]...............................  ..............  ..............  ..............         (2,000)
Materials and electronics technology............         226,045         236,045         235,145         248,145
    HIgh Temperature Superconducting Materials..  ..............         +10,000  ..............         +10,000
    LSTAT.......................................  ..............         (4,000)         (3,000)         (3,000)
    Joint LSTAT requirement.....................  ..............           (500)           (500)           (500)
    Materials and Processing Technology.........  ..............  ..............          -8.900          -4,900
    Military Medical/Trauma Care Technology.....  ..............  ..............  ..............  ..............
        2-D Ultrasound..........................  ..............  ..............          -3,500          -1,000
    Healthcare and Information infrastructure...  ..............  ..............          -3,000          -3,000
    Thermal Diamond Management..................  ..............  ..............         +14,500         +11,000
    Cryogenic Electronics.......................  ..............  ..............         +10,000         +10,000
Defense Nuclear Agency..........................         219,003         231,703         237,003         237,703
    High Power Microwave Technology.............  ..............          +4,700          +4,000          +4,700
    Counterterrorist Explosive Research.........  ..............          +4,000  ..............          +4,000
    Radiation Hardened Electronics..............  ..............        (15,000)  ..............        (15,000)
    Environmental Pollutants....................  ..............  ..............         (5,000)         (5,000)
    Thermionics.................................  ..............  ..............         +10,000         +10,000
Defense Health Research and Development.........  ..............  ..............         120,000          20,000
    Breast Cancer Research......................  ..............  ..............        +100,000  ..............
    AIDS Research...............................  ..............  ..............         +20,000         +20,000
Other Theater Missile Defense...................         460,470         423,470         475,470         438,470
    Reduction...................................  ..............        -37,0000  ..............         -37,000
    UAV/Boost Phase Interceptor.................  ..............  ..............         +15,000         +15,000
    Kauai Test Facility.........................  ..............  ..............         (3,000)         (3,000)
Counterterror Technical Support.................          12,044          24,044          12,044          18,244
    Pulsed Fast Neutron Analysis................  ..............         +12,000  ..............          +6,200
Experimental Evaluation of Major Innovative Tech         618,005         671,005         576,405         613,705
    MOBA........................................  ..............  ..............          -9,500          -9,500
    Command and Control Info Systems............  ..............  ..............         -11,100         -11,100
    Guidance Tech--Sharpshooter.................  ..............  ..............         -13,700         -13,700
    Advanced Simulation: Synthetic Theater of                                                                   
     War........................................  ..............  ..............          -3,000          -1,000
    Advanced Simulator Technologies.............  ..............  ..............          -9,700          -5,000
    Critical Mobile Targets.....................  ..............  ..............         -10,000         -10,000
    Pacific Disaster Center.....................  ..............  ..............          +6,000          +6,000
    Two Megawatt direct fuel cell powerplant....  ..............  ..............          +9,400          +7,000
    Shallow Water ASW...........................  ..............          +5,000  ..............          +5,000
    Classified Programs.........................  ..............         +35,000  ..............         +10,000
    Small Satellites............................  ..............          +1,000  ..............          +1,000
    Safety and Survivability....................  ..............          +2,000  ..............          +2,000
    GEOSAR......................................  ..............         +10,000  ..............         +10,000
    Crown Royal.................................  ..............  ..............  ..............          +5,000
    Strategic Packaging for Single Multi-Chip                                                                   
     Modules [Note: The conferees agree to                                                                      
     provide $2,000,000 only for Strategic                                                                      
     Packaging for Single and Multi-chip                                                                        
     Modules.]..................................  ..............  ..............  ..............         (2,000)
    Deep ocean relocation of coastal and harbor                                                                 
     sediments [Note: The conferees agree to                                                                    
     provide $2,500,000 only for the continuted                                                                 
     study of deep ocean relocation of coastal                                                                  
     and harbor sediments leading to a                                                                          
     demonstration and validiation of viable                                                                    
     relocation and environmental monitoring                                                                    
     technology.]...............................  ..............  ..............  ..............         (2,500)
    Large Millimeter Wave (Telescope............  ..............  ..............         (3,000)         (3,000)
Chemical and Biological Defense Program.........          25,684          38,284          21,688          35,684
    House Increase..............................  ..............         +12,600  ..............         +10,000
    Chem/bio defense advanced tech demo.........  ..............  ..............          -3,998  ..............
Advanceed Submarine Technology [Note: $7,000,000                                                                
 of submarine technology is for project M.].....           7,473          30,473          13,973          30,473
    Submarine Technology........................  ..............         +23,000  ..............         +20,000
    Active Structural Control...................  ..............  ..............          +3,000          +3,000
    Integrated, passive, topographic navigation.  ..............  ..............          +3,500              +0
Cooperative DoD/VA Medical Research.............  ..............  ..............          25,000          25,000
    Core Program................................  ..............  ..............         +20,000         +20,000
    Spinal/Brain research [Note: The conferees                                                                  
     agree to provide $5,000,000 to complete the                                                                
     efforts initiated in 1992 for the                                                                          
     Department of Defense Military Medical                                                                     
     Personnel Collaborative Spinal Cord Injury,                                                                
     Paralysis, Neuroscience Research, Education                                                                
     and Training Center.]......................  ..............  ..............          +5,000          +5,000
Advanced Electronics Technologies...............         419,863         434,863         388,718         409,018
    Focus Hope/U.S. Japan Management Training...  ..............  ..............         -23,642         -13,642
    CALS/Electronic Resource Centers............  ..............  ..............          -6,000  ..............
    Manufacturing Technology Applications--                                                                     
     Advanced Multimissile Manufacturing........  ..............  ..............         -10,000         -10,000
    Electronic Module Technology: Rapid                                                                         
     acquisition of application specific signal                                                                 
     processors technology base efforts.........  ..............  ..............          -3,100          -3,100
    High Density Microwave Packaging............  ..............  ..............          -9,100          -2,100
    Microwave and Analog Front End Technology...  ..............  ..............         -14,300          -7,000
    Seamless High Off-Chip Conductivity.........  ..............  ..............         +10,000         +10,000
    Institute for Advanced Flexible                                                                             
     Manufacturing..............................  ..............  ..............          +4,000          +4,000
    Advanced Lithography........................  ..............  ..............         +20,997         +20,997
    U.S. Japan--Management Training.............  ..............         -10,000  ..............         -10,000
    Advanced Lithography........................  ..............         +25,000  ..............  ..............
DMA mapping, charting, geodesy production.......          80,131          80,131          92,745          74,745
    Support and management......................  ..............  ..............          -5,386          -5,386
    Classified..................................  ..............  ..............         +18,000  ..............
Defense Airborne Reconnaissance Program.........         515,148         612,048         391,148         604,448
    Tier II UAV.................................          19,950          45,250          19,950          45,250
    Tier III-UAV................................          48,000          83,000          48,000          66,000
    Maneuver UAV................................          36,800          16,800          36,800          28,800
    U-2 Sensor Upgrades.........................  ..............          20,000  ..............          15,000
    U-2 Defensive Systems.......................  ..............          13,000  ..............          10,000
    U-2 General Upgrades........................  ..............          15,000  ..............  ..............
    MSAG........................................  ..............          12,000  ..............           8,000
    E/O Framing Sensor..........................  ..............           8,000  ..............           7,000
    High Data Rate Laser Com....................  ..............           5,000  ..............           5,000
    Cannon Imagery Ground System................          33,833          49,833          38,833          44,833
Special Ops Advanced Technology Development.....          13,288          14,788          19,288          15,788
    Integrated Bridge...........................  ..............          +1,500  ..............          +1,500
    Millimeter Wave.............................  ..............  ..............          +1,000          +1,000
    Crown Royal.................................  ..............  ..............          +5,000  ..............
Special Operations Tactical Systems Development.         101,602         105,602         109,895         112,395
    Advanced Seal Delivery System...............  ..............  ..............          +4,000          +4,000
    SOF surface craft--Navy Boat program........  ..............  ..............          +4,293          +4,293
    Lightweight Strike Vehicle..................  ..............          +1,500  ..............  ..............
    Full Authority Digital Electronic Control...  ..............          +2,500  ..............          +2,500
----------------------------------------------------------------------------------------------------------------

      historically black colleges and other minority institutions

      The Department is encouraged to continue its support of 
minority institutions, including Hispanic serving institutions, 
through academic collaborations for research and education 
related to science and technology, relevant to the Department's 
mission.

            computing systems and communications technology

      The conferees agree to provide $8,000,000 for a Global 
Broadcast Service (GBS) as recommended by the House. The 
conferees also agree to the House language directing that the 
GBS initiative is to be managed by the Under Secretary of 
Defense for Acquisition and Technology (USD (A&T)). The 
conferees do not agree to the House language directing that the 
$8,000,000 is to be released to the Navy for a near-term GBS 
pilot program. Instead, the conferees believe that the GBS 
program must address the needs of all of the services and 
direct the USD (A&T) to compete the acquisition of both the 
near-term and objective GBS. After the competition is 
completed, the Under Secretary of Defense (Comptroller) is to 
certify to the defense committees that $8,000,000 has been 
released to the service chosen as executive agent to conduct 
the near-term GBS pilot program. The conferees do agree to the 
House language directing the USD (A&T) to provide to the 
defense committees a long-term master architecture. 
Additionally, the conferees direct that the USD (A&T) provide a 
comparison of cost, schedule, technical risk and operational 
considerations for several potential GBS host spacecraft 
including UFO follow-on, Milstar, DSCS, classified, and 
commercial satellites with the master architecture.

                     advanced electronic technology

      The conferees agree with the House report concerning the 
ECRC program and also direct the Department to enter into a 
five-year contract with each of the two system integrators, the 
National ECRC and CAMP, who will continue to manage their 
respective sites.
      The conferees commend ARPA for recent advancements in 
low-cost dense plasma focus x-ray source technology and 0.18 
micron synchrotron-based x-ray technology. The conferees urge 
ARPA to continue efforts in the point source area and direct 
the Agency to allocate $11,000,000 to fund an integrated point 
source x-ray lithography system based on these latest x-ray 
source and stepper developments. This research should target 
defense related applications such as the production of 
Microwave Monolithic Integrated Circuit (MMIC) chips for 
military uses, including missile seekers, digital battlefield 
systems and F-22 radar modules.

                     electronic combat master plan

      The conferees direct the Secretary of Defense to develop 
and provide to the congressional defense committees, no later 
than March 31, 1996, an Electronic Combat Master Plan to 
establish an optimum infrastructure for electronic combat 
assets.

                    strategic target system (stars)

      The conferees agree to provide $10,000,000, the budget 
amount, only to continue planning, preparation and actual 
conduct of STARS flight tests. The conferees direct that BMDO 
take no actions to terminate or place the STARS program in a 
caretaker status.

                naval theater ballistic missile defense

      The conferees believe that the Navy's area wide (Lower 
Tier) and theater wide (Upper Tier) programs should be deployed 
as rapidly as possible. The Navy's current plan to build on 
existing ship platforms, the Aegis system, proven launch 
systems, and the operational Standard missile family has 
resulted in a cost effective, technically capable and 
manageable program that is planned to produce a user 
operational capability (UOES) Upper Tier system not later than 
FY 1999 with an initial operational capability (IOC) by 2001. 
The conferees are committed to a rapid and actual deployment of 
an effective sea-based missile defense system. The conferees 
direct the Department to place highest priority on proceeding 
with a development program that achieves deployment of the Navy 
Upper Tier system by the planned 2001 IOC. The conferees 
endorse the Navy Theater Wide system as a core TMD program and 
endorse fully funding the core program in the 5-year defense 
plan. The conferees direct that not less than $200,442,000 
shall be spent on Navy Upper Tier and not less than 
$282,473,000 on Navy Lower Tier for research and development 
activities. Funding allocations through BMDO to the Navy for 
these programs should proceed expeditiously.

                      tier ii unmanned air vehicle

      The conferees agree to provide $45,250,000 for the Tier 
II (Predator) unmanned air vehicle program, an increase of 
$25,300,000 to the budget request. The conferees also agree 
that the additional funding provided shall only be used for 
attrition replacement air vehicles and shall not be used to 
marinize the Predator air vehicle.

                        rivet joint re-engining

      The conferees have provided $79,000,000 solely for the 
purpose of initiation of re-engining the Rivet Joint fleet. The 
conferees direct that future funding for this project be 
included in budget submissions for fiscal year 1997 and beyond, 
thus ensuring completion of this project in an expeditious and 
cost effective manner.

                        USH-42 Mission Recorder

      The conferees agree that from funding provided in fiscal 
year 1996 for the Defense AirBorne Reconnaissance Program, 
$10,000,000 may be used for the planned product improvement 
that will result in a low cost, lightweight, high capacity, 
digital version of the Navy's USH-42 recorder/reproducer 
suitable for a wide range of applications in reconnaissance and 
surveillance platforms.

               Developmental Test and Evaluation, Defense

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
DIRECTOR OF TEST & EVAL DEFENSE:                                                                                
    CENTRAL TEST AND EVALUATION INVESTMENT                                                                      
     DEVELOPMENT (CT............................         119,714         119,714         109,714         114,714
    FOREIGN COMPARATIVE TESTING.................          34,062          34,062          32,453          32,453
    DEVELOPMENT TEST AND EVALUATION.............         105,565         105,565         103,915         103,915
----------------------------------------------------------------------------------------------------------------

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

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

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Business Operations Fund................         878,700       1,573,800       1,178,700         878,700
National Defense Sealift Fund...................         974,220         974,220       1,024,220       1,024,220
                                                 ---------------------------------------------------------------
      Total, Revolving and Management Funds.....       1,852,920       2,548,020       2,202,920       1,902,920
----------------------------------------------------------------------------------------------------------------

                    Defense Business Operations Fund

      The conferees agree to provide $878,700,000 for the 
Defense Business Operations Fund.

                     National Defense Sealift Fund

      The conferees agree to provide $1,024,220,000 for the 
National Defense Sealift Fund.

                     maritime prepositioning ships

      The legislative authority in this Act to procure an 
additional Maritime Prepositioning Ship for up to $110,000,000 
may not be used until a notification has been provided at least 
30 days in advance of release of a RFP under this authority to 
the congressional defense committee on the Department of the 
Navy's intent to use the authority and on identification and 
justification of proposed financing sources.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

      The conferees agree to the following amounts for Other 
Department of Defense programs:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Health..................................      10,153,558      10,205,158      10,196,558      10,226,358
Chemical Agents and Munitions Destruction.......         746,698         746,698         631,698         672,250
Drug Interdiction Defense.......................         680,432         688,432         680,432         688,432
Office of the Inspector General.................         139,226         178,226         139,226         178,226
                                                 ---------------------------------------------------------------
      Total, Other Department of Defense                                                                        
       Programs.................................      11,719,914      11,818,514      11,647,914      11,765,266
----------------------------------------------------------------------------------------------------------------

                Explanation of Project Level Adjustments

                         defense health program

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Medical Programs, O&M:..........................       9,865,525       9,917,125       9,908,525       9,938,325
    PACMEDNET...................................  ..............         +16,000         +11,000         +11,000
    Beaumont Army Medical Center Computer                                                                       
     Support....................................  ..............          +1,500  ..............          +1,500
    Currency Fluctuation........................  ..............          +8,100  ..............          +6,900
    Breast Cancer...............................  ..............         +25,000  ..............         +25,000
    American Red Cross..........................  ..............          +1,000         +14,500         +14,500
    Desert Storm Syndrome.......................  ..............  ..............  ..............          +3,400
    USTF........................................  ..............  ..............         -15,900  ..............
    Telemedicine................................  ..............  ..............         +22,900  ..............
    Ongoing Initiatives:                                                                                        
        Brown Tree Snake........................  ..............  ..............          +1,000          +1,000
        Military Nursing........................  ..............  ..............          +5,000          +5,000
        Pacific Island Referral Project.........  ..............  ..............          +2,500          +2,500
        USUHS Graduate School of Nursing........  ..............  ..............          +2,000          +2,000
----------------------------------------------------------------------------------------------------------------

                             breast cancer

      The conferees have provided an increase of $100,000,000 
only for breast cancer. The conferees have provided $75,000,000 
to continue the Army's peer-reviewed research program. In 
addition, the conferees have provided $25,000,000 to the 
Department for: increased recruitment, training and education 
for military cancer specialists; diagnostic equipment and 
improved detection technologies, such as digital mammography; 
and prevention and education efforts for the military 
community.

                         tricare implementation

      The conferees commend the significant progress of the 
Department of Defense in moving toward a nation-wide managed 
health care system for the military, known as TRICARE. Existing 
law mandates that the TRICARE system be implemented by 
September 30, 1996, and the Department has attempted to meet 
this deadline. Unfortunately, complications with the issuance 
and implementation of these large, complex, competitively bid 
contracts, have caused significant problems and associated 
delays. The conferees are concerned that the Department has 
accelerated the process in order to meet this statutory 
deadline. The conferees understand the Department is fully 
committed to the full implementation of TRICARE, as well as a 
standard health benefit for all military beneficiaries, but 
believe that the Department, the offerors, and the 
beneficiaries would greatly benefit from additional time in 
meeting the complex requirements of TRICARE. Therefore, the 
conferees agree to extend the deadline for implementation of 
the TRICARE managed care system by one year.

          uniformed services university of the health sciences

      The conferees remain committed to the continuation of the 
Uniformed Services University of the Health Sciences (USUHS) at 
its current level and direct that, within funds made available 
to the Defense Health program, the amount provided for USUHS 
shall fully fund the programs and functions of the University 
at existing levels.

                     Chemical Agents and Munitions

      The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate         Quantity       Conference  
----------------------------------------------------------------------------------------------------------------
CHEM AGENTS & MUNITIONS                                                                                         
 DESTRUCTION, DEF:                                                                                              
    CHEM DEMILITARIZATION--PROC.         299,448         299,448         224,448  ..............         265,000
    CHEM DEMILITARIZATION--O&MD.         393,850         393,850         353,850  ..............         353,850
----------------------------------------------------------------------------------------------------------------

             Drug Interdiction and Counter-Drug Activities

      The conferees agree to provide $688,432,000 as proposed 
by the House instead of $680,432,000 as proposed by the Senate. 
The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Military Personnel..............................         152,787         152,787         152,787         152,787
O&M.............................................         422,633         441,633         442,633         440,088
    South Com Radars............................          20,282          21,782          20,282          20,282
    Community Outreach..........................           8,236               0           8,236               0
    CARIBROC Comms..............................             206           1,356             206             206
    Gulf States CI..............................           2,059           3,900           2,059           6,059
    Southwest Border Info System................           4,000           5,545           4,000           4,000
    Civil Air Patrol............................           2,224           3,424           2,224           3,424
Procurement.....................................          48,659          57,659          48,659          59,204
    Southwest Border Info System................           5,265           6,265           5,265           7,810
    Classified Program..........................  ..............           8,000  ..............           8,000
RDT&E...........................................          36,353          36,353          36,353          36,353
                                                 ---------------------------------------------------------------
      Total, Drug Interdiction..................         680,432         688,432         680,432         688,432
----------------------------------------------------------------------------------------------------------------

      The conferees agree to provide $4,000,000 above the 
budget to the Gulf States Counterdrug Initiative, and direct 
that $2,000,000 be provided for the Command, Control, 
Communications and Computer Network and $2,000,000 for the 
Regional Counterdrug Training Academy.
      The conferees have deleted bill language which provided 
$5,000,000 for the conversion of surplus Department of Defense 
helicopters by State and local governments for use in 
counterdrug activities and agree that funding may be requested 
in annual plans submitted by individual states.
      The conferees agree that, if authorized, up to $3,000,000 
in available funds may be used to continue the Community 
Outreach pilot program.
      The conferees agree that, in accordance with normal 
reprogramming procedures, up to $25,000,000 in available funds 
may be used to procure low-energy/backscatter x-ray equipment.

                    Office of the Inspector General

      The conferees agree to provide $178,226,000 for the 
Office of the Inspector General. Of this amount, $177,226,000 
shall be for operation and maintenance activities and 
$1,000,000 for procurement.

                      TITLE VII--RELATED AGENCIES

------------------------------------------------------------------------
                              Request     House      Senate   Conference
------------------------------------------------------------------------
Central Intelligence Agency                                             
 Retirement and Disability                                              
 System Fund...............    213,900    213,900    213,900     213,900
Intelligence Community                                                  
 Management Account........     93,283     75,683     93,283      90,683
National Security Education                                             
 Trust Fund................     15,000     15,000      7,500       7,500
Kaho'olawe Island                                                       
 Conveyance and                                                         
 Environmental Restoration                                              
 Trust Fund................  .........  .........     25,000      25,000
------------------------------------------------------------------------

               Intelligence Community Management Account

                        environmental task force

      The conferees have provided $15,000,000 to support the 
activities of the task force. Of this amount, $5,000,000 is to 
be used to continue joint United States/Russian efforts in this 
area.

                 National Security Education Trust Fund

      The conferees direct the Director of Central 
Intelligence, in coordination with the NSETF Board, to 
establish criteria and procedures to ensure that all 
individuals accepting fellowships or scholarships from this 
fund meet qualifications for employment by the Department of 
Defense or Intelligence Community. The conferees further direct 
that any recipient must be engaged in a course of study that is 
an identified critical shortage within the Department of 
Defense or the Intelligence Community. Upon meeting these 
requirements, the recipient must agree to serve at least two 
years with the Department of Defense or the Intelligence 
Community or reimburse the U.S. Treasury for the total costs of 
the scholarship or fellowship.

                     TITLE VIII--GENERAL PROVISIONS

      The conference agreement incorporates general provisions 
of the House and Senate versions of the bill which were not 
amended. Those general provisions that were amended in 
conference follow:
      The conferees included a general provision (Section 8005) 
which amends House language on transfer authority to $2.4 
billion.
      The conferees included a general provision (Section 8010) 
which amends Senate language that defines the congressional 
defense committees.
      The conferees included a general provision (Section 8028) 
which amends House language to prohibit the demilitarization of 
certain types of surplus firearms.
      The conferees included a general provision (Section 8045) 
which amends Senate language which earmarks funds for the Civil 
Air Patrol.
      The conferees retained a Senate provision (Section 8046) 
concerning Federally Funded Research and Development Centers 
(FFRDCs). The conferees direct that the restrictions on 
consultants only shall apply to the use of consulting services 
for specific projects undertaken by an FFRDC as part of its 
core mission responsibilities to meet sponsor requirements. The 
restrictions do not apply to administration and management 
functions necessary to operate an FFRDC as an organizational 
entity.
      The conferees included a general provision (Section 8062) 
which amends Senate language that limits payment to Uniformed 
Services Treatment Facilities to $315,000,000.
      The conferees included a general provision (Section 8063) 
which amends House language concerning limitations on U.S. 
support for NATO headquarters operations.
      The conferees included a general provision (Section 8065) 
which amends House language that maintains an expense/
investment threshold of $100,000.
      The conferees included a general provision (Section 8073) 
which amends House language concerning the supercomputing 
capability at various Department of Defense sites.
      The conferees included a general provision (Section 8082) 
which amends House language concerning the establishment of 
field operating agencies.
      The conferees included a general provision (Section 8083) 
which amends Senate language concerning rescission of funds 
from various Procurement and Research and Development programs.

                          rescission of funds

      The conferees agree to rescind excess prior year funds, 
as presented in the following table:

------------------------------------------------------------------------
                            House         Senate           Conference   
------------------------------------------------------------------------
      FISCAL YEAR 1993                                                  
                                                                        
PROCUREMENT OF                                                          
 AMMUNITION, ARMY:                                                      
    Armament and                                                        
     retooling                                                          
     manufacturing                                                      
     support initiative..        0        -15,000,000                  0
                          ----------------------------------------------
        Subtotal.........        0        -15,000,000                  0
                          ==============================================
Total fiscal year 1993...        0        -15,000,000                  0
                          ==============================================
      FISCAL YEAR 1994                                                  
                                                                        
AIRCRAFT PROCUREMENT, AIR                                               
 FORCE:                                                                 
    F-16 production                                                     
     termination.........        0        -49,854,000        -49,854,000
        F-111 claims.....        0         -3,800,000         -3,800,000
                          ----------------------------------------------
        Subtotal.........        0        -53,654,000        -53,654,000
                          ==============================================
MISSILE PROCUREMENT, AIR                                                
 FORCE:                                                                 
    GPS on-orbit                                                        
     incentive...........        0                  0        -16,783,000
                          ----------------------------------------------
        Subtotal.........        0                  0        -16,783,000
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, ARMY:                                               
    Triservice standoff                                                 
     attack missile......        0           -242,000                  0
                          ----------------------------------------------
        Subtotal.........        0           -242,000                  0
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, NAVY:                                               
    Triservice standoff                                                 
     attack missile......        0         -4,416,000                  0
                          ----------------------------------------------
        Subtotal.........        0         -4,416,000                  0
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, AIR                                                 
 FORCE:                                                                 
    Triservice standoff                                                 
     attack missile......        0        -46,589,000                  0
                          ----------------------------------------------
        Subtotal.........        0        -46,589,000                  0
                          ==============================================
Total fiscal year 1994...        0       -104,901,000        -70,437,000
                          ==============================================
      FISCAL YEAR 1995                                                  
                                                                        
WEAPONS PROCUREMENT,                                                    
 NAVY:                                                                  
    Tomahawk contract                                                   
     savings.............        0                  0        -10,000,000
    Harpoon contract                                                    
     savings.............        0                  0         -2,400,000
    Ordance support                                                     
     equipment...........        0                  0         -2,200,000
                          ----------------------------------------------
        Subtotal.........        0                  0        -14,600,000
                          ==============================================
SHIPBUILDING AND                                                        
 CONVERSION, NAVY:                                                      
    Outfitting...........        0                  0        -55,000,000
    Post delivery (craft                                                
     outfitting, post                                                   
     delivery)...........        0                  0        -32,700,000
                          ----------------------------------------------
        Subtotal.........        0                  0        -87,700,000
                          ==============================================
OTHER PROCUREMENT, NAVY:                                                
    Forklift trucks......        0         -2,000,000         -2,000,000
    Other supply support                                                
     equipment...........        0         -1,500,000         -1,500,000
    Secure data..........        0         -2,600,000         -2,600,000
    Nucalts..............        0         -2,500,000         -2,500,000
                          ----------------------------------------------
        Subtotal.........        0         -8,600,000         -8,600,000
                          ==============================================
AIRCRAFT PROCUREMENT, AIR                                               
 FORCE:                                                                 
    A-10 modifications...        0        -46,400,000        -17,500,000
    F-111 claims.........        0         -6,700,000         -6,500,000
                          ----------------------------------------------
        Subtotal.........        0        -53,100,000        -24,000,000
                          ==============================================
MISSILE PROCUREMENT, AIR                                                
 FORCE:                                                                 
    Classified programs..        0                  0       -120,000,000
    GPS on-orbit                                                        
     incentive...........        0                  0        -20,978,000
                          ----------------------------------------------
        Subtotal.........        0                  0       -140,978,000
                          ==============================================
OTHER PROCUREMENT, AIR                                                  
 FORCE:                                                                 
    Classified programs..        0                  0       -180,000,000
                          ----------------------------------------------
        Subtotal.........        0                  0       -180,000,000
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, ARMY:                                               
    Triservice standoff                                                 
     attack missile......        0        -11,156,000         -9,000,000
                          ----------------------------------------------
        Subtotal.........        0        -11,156,000         -9,000,000
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, NAVY:                                               
    Triservice standoff                                                 
     attack missile......        0        -10,150,000                  0
    F-14/JDAM............        0                  0         -6,000,000
                          ----------------------------------------------
        Subtotal.........        0        -10,150,000         -6,000,000
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, AIR                                                 
 FORCE:                                                                 
    Outboard electronic                                                 
     warfare simulator...        0         -6,000,000         -6,000,000
    Triservice standoff                                                 
     attack missile......        0         -9,767,000         -1,902,000
                          ----------------------------------------------
        Subtotal.........        0        -15,767,000         -7,902,000
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION,                                                     
 DEFENSE-WIDE:                                                          
    Maritime Technology                                                 
     Office..............  .......  .................                   
    (Ship Self Defense)..        0                  0        -12,000,000
                          ----------------------------------------------
        Subtotal.........        0                  0        -12,000,000
                          ==============================================
Total fiscal year 1995...        0        -98,773,000       -490,780,000
                          ==============================================
                Grand                                                   
                 total...        0        218,674,000       -561,217,000
------------------------------------------------------------------------

      The conferees included a general provision (Section 8086) 
which amends House language that limits executive compensation 
to $200,000 per year.
      The conferees included a general provision (Section 8088) 
which amends Senate language prohibiting the obligation or 
expenditure of any funds provided in this Act for aid to the 
Government of North Korea.
      The conferees included a general provision (Section 8092) 
which amends Senate language that reallocates funds to cover 
unanticipated shipbuilding cost increases.
      The conferees included a general provision (Section 8099) 
which amends Senate language concerning ball and roller 
bearings manufactured in the United States.
      The conferees included a general provision (Section 8100) 
which amends Senate language to allow for storage and disposal 
of pentaborane.
      The conferees included a general provision (Section 8102) 
which amends Senate language that directs the Department of 
Defense to match disbursement to obligations before the 
disbursement is made.
      The conferees included a general provision (Section 8104) 
which amends House language that prohibits procurement of 120mm 
mortars or mortar ammunition manufactured outside the United 
States.
      The conferees included a general provision (Section 8108) 
which amends House language concerning the lease or charter of 
double hull ships by the Military Sealift Command.
      The conferees included a general provision (Section 8111) 
which amends House language pertaining to the National Training 
Center, and the interim and permanent rotational airhead.
      The conferees included a general provision (Section 8115) 
which amends House language concerning international 
peacekeeping, peace enforcement, and humanitarian assistance 
operations.
      The conferees included a general provision (Section 8119) 
which amends House language concerning performing abortions in 
Department of Defense medical facilities.
      The conferees included a new general provision (Section 
8124) concerning the participation of U.S. forces in any 
operation in Bosnia-Herzegovina.
      The conferees included a general provision (Section 8125) 
which reduces the appropriation accounts in the Act by 
$832,000,000 to reflect savings from revised economic 
assumptions.
      The Executive Branch Mid Session Review of the budget 
revised the inflation estimate on which the fiscal year 1996 
budget was based downward from its original assumptions. This 
downward revision results in overall savings to the Department 
of Defense and the reduction in this provision reflects those 
savings.
      The conferees included a new general provision (Section 
8126) which makes funds available from the Defense Business 
Operations Fund for termination liability for the VC-137 
replacement aircraft.
      The conferees included a new general provision (Section 
8127) which allows funds to be obligated for payment of 
satellite on-orbit incentives.
      The conferees included a new general provision (Section 
8128) which makes funds available for support of a NATO 
Alliance Ground Surveillance program based on the Joint 
Surveillance/Target Attack Radar System.
      The conferees included a new general provision (Section 
8129) which reduces the funding provided in Title IV, Research, 
Development, Test and Evaluation, by $325,000,000, in order to 
achieve savings in overhead and improve management 
efficiencies. This reduction is to be applied on a pro-rata 
basis by subproject within each R-1 program element as modified 
by this Act, except no reduction may be taken against funds 
made available to the Department of Defense for Ballistic 
Missile Defense.

                   conference total--with comparisons

      The total new budget (obligational) authority for the 
fiscal year 1996 recommended by the Committee of Conference, 
with comparisons to the fiscal year 1995 amount, the 1996 
budget estimates, and the House and Senate bills for 1996 
follow:

New budget (obligational) authority, fiscal year 1995...$241,553,071,000
Budget estimates of new (obligational) authority, fiscal 
    year 1996........................................... 236,344,017,000
House bill, fiscal year 1996............................ 243,997,500,000
Senate bill, fiscal year 1996........................... 242,683,841,000
Conference agreement, fiscal year 1996.................. 243,251,297,000
Conference agreement compared with:
        New budget (obligational) authority, fiscal year 
          1995..........................................  +1,698,226,000
        Budget estimates of new (obligational) 
          authority, fiscal year 1996...................  +6,907,280,000
        House bill, fiscal year 1996....................    -746,203,000
        Senate bill, fiscal year 1996...................    +567,456,000

                                   Bill Young,
                                   Joseph M. McDade,
                                   Bob Livingston,
                                   Jerry Lewis,
                                   Joe Skeen,
                                   David L. Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Mark W. Neumann (except to the 
                                       agreement regarding U.S. 
                                       deployment in Bosnia),
                                   John P. Murtha,
                                   Norman D. Dicks,
                                   Charles Wilson,
                                   W.G. (Bill) Hefner,
                                   Martin Olav Sabo,
                                 Managers on the Part of the House.

                                   Ted Stevens,
                                   Thad Cochran,
                                   Arlen Specter,
                                   Pete V. Domenici,
                                   Phil Gramm,
                                   Kit Bond,
                                   Mitch McConnell,
                                   Connie Mack,
                                   Richard C. Shelby,
                                   Mark O. Hatfield,
                                   Daniel K. Inouye,
                                   Fritz Hollings,
                                   J. Bennett Johnston,
                                   Robert C. Byrd,
                                   Patrick J. Leahy,
                                Managers on the Part of the Senate.