[House Report 104-450]
[From the U.S. Government Publishing Office]





104th Congress           HOUSE OF REPRESENTATIVES                Report
2d Session                                                      104-450
_______________________________________________________________________


 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996

                               ----------  

                           CONFERENCE REPORT

                              to accompany

                                S. 1124




                January 22, 1996.--Ordered to be printed
104th Congress 2d SessioHOUSE OF REPRESENTATIVES        Report
                                                       104-450
_______________________________________________________________________



                  NATIONAL DEFENSE AUTHORIZATION ACT

                         FOR FISCAL YEAR 1996

                               __________

                           CONFERENCE REPORT

                              to accompany

                                S. 1124




                January 22, 1996.--Ordered to be printed


         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-450
_______________________________________________________________________


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996

                                _______


                January 22, 1996.--Ordered to be printed

_______________________________________________________________________


 Mr. Spence, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany S. 1124]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendments of the House to the bill (S. 
1124), to authorize appropriations for fiscal year 1996 for 
military activities of the Department of Defense, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, 
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 Senate recede from its disagreement to the 
amendment of the House to the text of the bill and agree to the 
same with an amendment as follows:
      In lieu of the matter proposed to be inserted by the 
House amendment, insert the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense 
Authorization Act for Fiscal Year 1996''.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into five divisions 
as follows:
            (1) Division A--Department of Defense 
        Authorizations.
            (2) Division B--Military Construction 
        Authorizations.
            (3) Division C--Department of Energy National 
        Security Authorizations and Other Authorizations.
            (4) Division D--Federal Acquisition Reform.
            (5) Division E--Information Technology Management 
        Reform.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
Sec. 4. Extension of time for submission of reports.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical demilitarization program.
Sec. 108. Defense health programs.

                        Subtitle B--Army Programs

Sec. 111. Procurement of OH-58D Armed Kiowa Warrior helicopters.
Sec. 112. Repeal of requirements for armored vehicle upgrades.
Sec. 113. Multiyear procurement of helicopters.
Sec. 114. Report on AH-64D engine upgrades.
Sec. 115. Requirement for use of previously authorized multiyear 
          procurement authority for Army small arms procurement.

                        Subtitle C--Navy Programs

Sec. 131. Nuclear attack submarines.
Sec. 132. Research for advanced submarine technology.
Sec. 133. Cost limitation for Seawolf submarine program.
Sec. 134. Repeal of prohibition on backfit of Trident submarines.
Sec. 135. Arleigh Burke class destroyer program.
Sec. 136. Acquisition program for crash attenuating seats.
Sec. 137. T-39N trainer aircraft.
Sec. 138. Pioneer unmanned aerial vehicle program.

                     Subtitle D--Air Force Programs

Sec. 141. B-2 aircraft program.
Sec. 142. Procurement of B-2 bombers.
Sec. 143. MC-130H aircraft program.

              Subtitle E--Chemical Demilitarization Program

Sec. 151. Repeal of requirement to proceed expeditiously with 
          development of chemical demilitarization cryofracture facility 
          at Tooele Army Depot, Utah.
Sec. 152. Destruction of existing stockpile of lethal chemical agents 
          and munitions.
Sec. 153. Administration of chemical demilitarization program.

          TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic research and exploratory development.
Sec. 203. Modifications to Strategic Environmental Research and 
          Development Program.
Sec. 204. Defense dual use technology initiative.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Tactical manned reconnaissance.
Sec. 213. Joint Advanced Strike Technology (JAST) program.
Sec. 214. Development of laser program.
Sec. 215. Navy mine countermeasures program.
Sec. 216. Space-based infrared system.
Sec. 217. Defense Nuclear Agency programs.
Sec. 218. Counterproliferation support program.
Sec. 219. Nonlethal weapons study.
Sec. 220. Federally funded research and development centers and 
          university-affiliated research centers.
Sec. 221. Joint seismic program and global seismic network.
Sec. 222. Hydra-70 rocket product improvement program.
Sec. 223. Limitation on obligation of funds until receipt of electronic 
          combat consolidation master plan.
Sec. 224. Report on reductions in research, development, test, and 
          evaluation.
Sec. 225. Advanced Field Artillery System (Crusader).
Sec. 226. Demilitarization of conventional munitions, rockets, and 
          explosives.
Sec. 227. Defense Airborne Reconnaissance program.

            Subtitle C--Ballistic Missile Defense Act of 1995

Sec. 231. Short title.
Sec. 232. Findings.
Sec. 233. Ballistic Missile Defense policy.
Sec. 234. Theater Missile Defense architecture.
Sec. 235. Prohibition on use of funds to implement an international 
          agreement concerning Theater Missile Defense systems.
Sec. 236. Ballistic Missile Defense cooperation with allies.
Sec. 237. ABM Treaty defined.
Sec. 238. Repeal of Missile Defense Act of 1991.

         Subtitle D--Other Ballistic Missile Defense Provisions

Sec. 251. Ballistic Missile Defense program elements.
Sec. 252. Testing of Theater Missile Defense interceptors.
Sec. 253. Repeal of missile defense provisions.

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

Sec. 261. Precision-guided munitions.
Sec. 262. Review of C4I by National Research Council.
Sec. 263. Analysis of consolidation of basic research accounts of 
          military departments.
Sec. 264. Change in reporting period from calendar year to fiscal year 
          for annual report on certain contracts to colleges and 
          universities.
Sec. 265. Aeronautical research and test capabilities assessment.

                        Subtitle F--Other Matters

Sec. 271. Advanced lithography program.
Sec. 272. Enhanced fiber optic guided missile (EFOG-M) system.
Sec. 273. States eligible for assistance under Defense Experimental 
          Program To Stimulate Competitive Research.
Sec. 274. Cruise missile defense initiative.
Sec. 275. Modification to university research initiative support 
          program.
Sec. 276. Manufacturing technology program.
Sec. 277. Five-year plan for consolidation of defense laboratories and 
          test and evaluation centers.
Sec. 278. Limitation on T-38 avionics upgrade program.
Sec. 279. Global Positioning System.
Sec. 280. Revision of authority for providing Army support for the 
          National Science Center for Communications and Electronics.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Civil Air Patrol.

                   Subtitle B--Depot-Level Activities

Sec. 311. Policy regarding performance of depot-level maintenance and 
          repair for the Department of Defense.
Sec. 312. Management of depot employees.
Sec. 313. Extension of authority for aviation depots and naval shipyards 
          to engage in defense-related production and services.
Sec. 314. Modification of notification requirement regarding use of core 
          logistics functions waiver.

                  Subtitle C--Environmental Provisions

Sec. 321. Revision of requirements for agreements for services under 
          environmental restoration program.
Sec. 322. Addition of amounts creditable to Defense Environmental 
          Restoration Account.
Sec. 323. Use of Defense Environmental Restoration Account.
Sec. 324. Revision of authorities relating to restoration advisory 
          boards.
Sec. 325. Discharges from vessels of the Armed Forces.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Operation of commissary system.
Sec. 332. Limited release of commissary stores sales information to 
          manufacturers, distributors, and other vendors doing business 
          with Defense Commissary Agency.
Sec. 333. Economical distribution of distilled spirits by 
          nonappropriated fund instrumentalities.
Sec. 334. Transportation by commissaries and exchanges to overseas 
          locations.
Sec. 335. Demonstration project for uniform funding of morale, welfare, 
          and recreation activities at certain military installations.
Sec. 336. Operation of combined exchange and commissary stores.
Sec. 337. Deferred payment programs of military exchanges.
Sec. 338. Availability of funds to offset expenses incurred by Army and 
          Air Force Exchange Service on account of troop reductions in 
          Europe.
Sec. 339. Study regarding improving efficiencies in operation of 
          military exchanges and other morale, welfare, and recreation 
          activities and commissary stores.
Sec. 340. Repeal of requirement to convert ships' stores to 
          nonappropriated fund instrumentalities.
Sec. 341. Disposition of excess morale, welfare, and recreation funds.
Sec. 342. Clarification of entitlement to use of morale, welfare, and 
          recreation facilities by members of reserve components and 
          dependents.

     Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Competitive procurement of printing and duplication services.
Sec. 352. Direct vendor delivery system for consumable inventory items 
          of Department of Defense.
Sec. 353. Payroll, finance, and accounting functions of the Department 
          of Defense.
Sec. 354. Demonstration program to identify overpayments made to 
          vendors.
Sec. 355. Pilot program on private operation of defense dependents' 
          schools.
Sec. 356. Program for improved travel process for the Department of 
          Defense.
Sec. 357. Increased reliance on private-sector sources for commercial 
          products and services.

         Subtitle F--Miscellaneous Reviews, Studies, and Reports

Sec. 361. Quarterly readiness reports.
Sec. 362. Restatement of requirement for semiannual reports to Congress 
          on transfers from high-priority readiness appropriations.
Sec. 363. Report regarding reduction of costs associated with contract 
          management oversight.
Sec. 364. Reviews of management of inventory control points and Material 
          Management Standard System.
Sec. 365. Report on private performance of certain functions performed 
          by military aircraft.
Sec. 366. Strategy and report on automated information systems of 
          Department of Defense.

                        Subtitle G--Other Matters

Sec. 371. Codification of Defense Business Operations Fund.
Sec. 372. Clarification of services and property that may be exchanged 
          to benefit the historical collection of the Armed Forces.
Sec. 373. Financial management training.
Sec. 374. Permanent authority for use of proceeds from the sale of 
          certain lost, abandoned, or unclaimed property.
Sec. 375. Sale of military clothing and subsistence and other supplies 
          of the Navy and Marine Corps.
Sec. 376. Personnel services and logistical support for certain 
          activities held on military installations.
Sec. 377. Retention of monetary awards.
Sec. 378. Provision of equipment and facilities to assist in emergency 
          response actions.
Sec. 379. Report on Department of Defense military and civil defense 
          preparedness to respond to emergencies resulting from a 
          chemical, biological, radiological, or nuclear attack.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Temporary variation in DOPMA authorized end strength 
          limitations for active duty Air Force and Navy officers in 
          certain grades.
Sec. 403. Certain general and flag officers awaiting retirement not to 
          be counted.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          Reserves.
Sec. 413. Counting of certain active component personnel assigned in 
          support of reserve component training.
Sec. 414. Increase in number of members in certain grades authorized to 
          serve on active duty in support of the Reserves.
Sec. 415. Reserves on active duty in support of cooperative threat 
          reduction programs not to be counted.
Sec. 416. Reserves on active duty for military-to-military contacts and 
          comparable activities not to be counted.

               Subtitle C--Military Training Student Loads

Sec. 421. Authorization of training student loads.

               Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.
Sec. 432. Authorization for increase in active-duty end strengths.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Joint officer management.
Sec. 502. Retired grade for officers in grades above major general and 
          rear admiral.
Sec. 503. Wearing of insignia for higher grade before promotion.
Sec. 504. Authority to extend transition period for officers selected 
          for early retirement.
Sec. 505. Army officer manning levels.
Sec. 506. Authority for medical department officers other than 
          physicians to be appointed as Surgeon General.
Sec. 507. Deputy Judge Advocate General of the Air Force.
Sec. 508. Authority for temporary promotions for certain Navy 
          lieutenants with critical skills.
Sec. 509. Retirement for years of service of Directors of Admissions of 
          Military and Air Force academies.

           Subtitle B--Matters Relating to Reserve Components

Sec. 511. Extension of certain Reserve officer management authorities.
Sec. 512. Mobilization income insurance program for members of Ready 
          Reserve.
Sec. 513. Military technician full-time support program for Army and Air 
          Force reserve components.
Sec. 514. Revisions to Army Guard Combat Reform Initiative to include 
          Army Reserve under certain provisions and make certain 
          revisions.
Sec. 515. Active duty associate unit responsibility.
Sec. 516. Leave for members of reserve components performing public 
          safety duty.
Sec. 517. Department of Defense funding for National Guard participation 
          in joint disaster and emergency assistance exercises.

                   Subtitle C--Decorations and Awards

Sec. 521. Award of Purple Heart to persons wounded while held as 
          prisoners of war before April 25, 1962.
Sec. 522. Authority to award decorations recognizing acts of valor 
          performed in combat during the Vietnam conflict.
Sec. 523. Military intelligence personnel prevented by secrecy from 
          being considered for decorations and awards.
Sec. 524. Review regarding upgrading of Distinguished-Service Crosses 
          and Navy Crosses awarded to Asian-Americans and Native 
          American Pacific Islanders for World War II service.
Sec. 525. Eligibility for Armed Forces Expeditionary Medal based upon 
          service in El Salvador.
Sec. 526. Procedure for consideration of military decorations not 
          previously submitted in timely fashion.

                 Subtitle D--Officer Education Programs

                        Part I--Service Academies

Sec. 531. Revision of service obligation for graduates of the service 
          academies.
Sec. 532. Nominations to service academies from Commonwealth of the 
          Northern Marianas Islands.
Sec. 533. Repeal of requirement for athletic director and 
          nonappropriated fund account for the athletics programs at the 
          service academies.
Sec. 534. Repeal of requirement for program to test privatization of 
          service academy preparatory schools.

                 Part II--Reserve Officer Training Corps

Sec. 541. ROTC access to campuses.
Sec. 542. ROTC scholarships for the National Guard.
Sec. 543. Delay in reorganization of Army ROTC regional headquarters 
          structure.
Sec. 544. Duration of field training or practice cruise required under 
          the Senior ROTC program.
Sec. 545. Active duty officers detailed to ROTC duty at senior military 
          colleges to serve as Commandant and Assistant Commandant of 
          Cadets and as tactical officers.

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

Sec. 551. Report concerning appropriate forum for judicial review of 
          Department of Defense personnel actions.
Sec. 552. Comptroller General review of proposed Army end strength 
          allocations.
Sec. 553. Report on manning status of highly deployable support units.
Sec. 554. Review of system for correction of military records.
Sec. 555. Report on the consistency of reporting of fingerprint cards 
          and final disposition forms to the Federal Bureau of 
          Investigation.

                        Subtitle F--Other Matters

Sec. 561. Equalization of accrual of service credit for officers and 
          enlisted members.
Sec. 562. Army Ranger training.
Sec. 563. Separation in cases involving extended confinement.
Sec. 564. Limitations on reductions in medical personnel.
Sec. 565. Sense of Congress concerning personnel tempo rates.
Sec. 566. Separation benefits during force reduction for officers of 
          commissioned corps of National Oceanic and Atmospheric 
          Administration.
Sec. 567. Discharge of members of the Armed Forces who have the HIV-1 
          virus.
Sec. 568. Revision and codification of Military Family Act and Military 
          Child Care Act.
Sec. 569. Determination of whereabouts and status of missing persons.
Sec. 570. Associate Director of Central Intelligence for Military 
          Support.

      Subtitle G--Support for Non-Department of Defense Activities

Sec. 571. Repeal of certain civil-military programs.
Sec. 572. Training activities involving support and services for 
          eligible organizations and activities outside the Department 
          of Defense.
Sec. 573. National Guard civilian youth opportunities pilot program.
Sec. 574. Termination of funding for Office of Civil-Military Programs 
          in Office of the Secretary of Defense.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1996.
Sec. 602. Limitation on basic allowance for subsistence for members 
          residing without dependents in Government quarters.
Sec. 603. Election of basic allowance for quarters instead of assignment 
          to inadequate quarters.
Sec. 604. Payment of basic allowance for quarters to members in pay 
          grade E-6 who are assigned to sea duty.
Sec. 605. Limitation on reduction of variable housing allowance for 
          certain members.
Sec. 606. Clarification of limitation on eligibility for family 
          separation allowance.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonuses for reserve forces.
Sec. 612. Extension of certain bonuses and special pay for nurse officer 
          candidates, registered nurses, and nurse anesthetists.
Sec. 613. Extension of authority relating to payment of other bonuses 
          and special pays.
Sec. 614. Codification and extension of special pay for critically short 
          wartime health specialists in the Selected Reserves.
Sec. 615. Hazardous duty incentive pay for warrant officers and enlisted 
          members serving as air weapons controllers.
Sec. 616. Aviation career incentive pay.
Sec. 617. Clarification of authority to provide special pay for nurses.
Sec. 618. Continuous entitlement to career sea pay for crew members of 
          ships designated as tenders.
Sec. 619. Increase in maximum rate of special duty assignment pay for 
          enlisted members serving as recruiters.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Repeal of requirement regarding calculation of allowances on 
          basis of mileage tables.
Sec. 622. Departure allowances.
Sec. 623. Transportation of nondependent child from member's station 
          overseas after loss of dependent status while overseas.
Sec. 624. Authorization of dislocation allowance for moves in connection 
          with base realignments and closures.

     Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 631. Effective date for military retiree cost-of-living adjustments 
          for fiscal years 1996, 1997, and 1998.
Sec. 632. Denial of non-regular service retired pay for Reserves 
          receiving certain court-martial sentences.
Sec. 633. Report on payment of annuities for certain military surviving 
          spouses.
Sec. 634. Payment of back quarters and subsistence allowances to World 
          War II veterans who served as guerilla fighters in the 
          Philippines.
Sec. 635. Authority for relief from previous overpayments under minimum 
          income widows program.
Sec. 636. Transitional compensation for dependents of members of the 
          Armed Forces separated for dependent abuse.

                        Subtitle E--Other Matters

Sec. 641. Payment to survivors of deceased members for all leave 
          accrued.
Sec. 642. Repeal of reporting requirements regarding compensation 
          matters.
Sec. 643. Recoupment of administrative expenses in garnishment actions.
Sec. 644. Report on extending to junior noncommissioned officers 
          privileges provided for senior noncommissioned officers.
Sec. 645. Study regarding joint process for determining location of 
          recruiting stations.
Sec. 646. Automatic maximum coverage under Servicemen's Group Life 
          Insurance.
Sec. 647. Termination of Servicemen's Group Life Insurance for members 
          of the Ready Reserve who fail to pay premiums.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Modification of requirements regarding routine physical 
          examinations and immunizations under CHAMPUS.
Sec. 702. Correction of inequities in medical and dental care and death 
          and disability benefits for certain Reserves.
Sec. 703. Medical care for surviving dependents of retired Reserves who 
          die before age 60.
Sec. 704. Medical and dental care for members of the Selected Reserve 
          assigned to early deploying units of the Army Selected 
          Reserve.
Sec. 705. Dental insurance for members of the Selected Reserve.
Sec. 706. Permanent authority to carry out specialized treatment 
          facility program.

                       Subtitle B--TRICARE Program

Sec. 711. Definition of TRICARE program.
Sec. 712. Priority use of military treatment facilities for persons 
          enrolled in managed care initiatives.
Sec. 713. Staggered payment of enrollment fees for TRICARE program.
Sec. 714. Requirement of budget neutrality for TRICARE program to be 
          based on entire program.
Sec. 715. Training in health care management and administration for 
          TRICARE lead agents.
Sec. 716. Pilot program of individualized residential mental health 
          services.
Sec. 717. Evaluation and report on TRICARE program effectiveness.
Sec. 718. Sense of Congress regarding access to health care under 
          TRICARE program for covered beneficiaries who are medicare 
          eligible.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Delay of termination of status of certain facilities as 
          Uniformed Services Treatment Facilities.
Sec. 722. Limitation on expenditures to support Uniformed Services 
          Treatment Facilities.
Sec. 723. Application of CHAMPUS payment rules in certain cases.
Sec. 724. Application of Federal Acquisition Regulation to participation 
          agreements with Uniformed Services Treatment Facilities.
Sec. 725. Development of plan for integrating Uniformed Services 
          Treatment Facilities in managed care programs of Department of 
          Defense.
Sec. 726. Equitable implementation of uniform cost sharing requirements 
          for Uniformed Services Treatment Facilities.
Sec. 727. Elimination of unnecessary annual reporting requirement 
          regarding Uniformed Services Treatment Facilities.

    Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

Sec. 731. Maximum allowable payments to individual health-care providers 
          under CHAMPUS.
Sec. 732. Notification of certain CHAMPUS covered beneficiaries of loss 
          of CHAMPUS eligibility.
Sec. 733. Personal services contracts for medical treatment facilities 
          of the Coast Guard.
Sec. 734. Identification of third-party payer situations.
Sec. 735. Redesignation of Military Health Care Account as Defense 
          Health Program Account and two-year availability of certain 
          account funds.
Sec. 736. Expansion of financial assistance program for health-care 
          professionals in reserve components to include dental 
          specialties.
Sec. 737. Applicability of limitation on prices of pharmaceuticals 
          procured for the Coast Guard.
Sec. 738. Restriction on use of Department of Defense facilities for 
          abortions.

                        Subtitle E--Other Matters

Sec. 741. Triservice nursing research.
Sec. 742. Termination of program to train military psychologists to 
          prescribe psychotropic medications.
Sec. 743. Waiver of collection of payments due from certain persons 
          unaware of loss of CHAMPUS eligibility.
Sec. 744. Demonstration program to train military medical personnel in 
          civilian shock trauma units.
Sec. 745. Study regarding Department of Defense efforts to determine 
          appropriate force levels of wartime medical personnel.
Sec. 746. Report on improved access to military health care for covered 
          beneficiaries entitled to medicare.
Sec. 747. Report on effect of closure of Fitzsimons Army Medical Center, 
          Colorado, on provision of care to military personnel, retired 
          military personnel, and their dependents.
Sec. 748. Sense of Congress on continuity of health care services for 
          covered beneficiaries adversely affected by closures of 
          military medical treatment facilities.
Sec. 749. State recognition of military advance medical directives.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                 MATTERS

                     Subtitle A--Acquisition Reform

Sec. 801. Inapplicability of limitation on expenditure of appropriations 
          to contracts at or below simplified acquisition threshold.
Sec. 802. Authority to delegate contracting authority.
Sec. 803. Quality control in procurements of critical aircraft and ship 
          spare parts.
Sec. 804. Fees for certain testing services.
Sec. 805. Coordination and communication of defense research activities.
Sec. 806. Addition of certain items to domestic source limitation.
Sec. 807. Encouragement of use of leasing authority.
Sec. 808. Cost reimbursement rules for indirect costs attributable to 
          private sector work of defense contractors.
Sec. 809. Subcontracts for ocean transportation services.
Sec. 810. Prompt resolution of audit recommendations.
Sec. 811. Test program for negotiation of comprehensive subcontracting 
          plans.
Sec. 812. Procurement of items for experimental or test purposes.
Sec. 813. Use of funds for acquisition of designs, processes, technical 
          data, and computer software.
Sec. 814. Independent cost estimates for major defense acquisition 
          programs.
Sec. 815. Construction, repair, alteration, furnishing, and equipping of 
          naval vessels.

                        Subtitle B--Other Matters

Sec. 821. Procurement technical assistance programs.
Sec. 822. Defense facility-wide pilot program.
Sec. 823. Treatment of Department of Defense cable television franchise 
          agreements.
Sec. 824. Extension of pilot mentor-protege program.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

Sec. 901. Organization of the Office of the Secretary of Defense.
Sec. 902. Reduction in number of Assistant Secretary of Defense 
          positions.
Sec. 903. Deferred repeal of various statutory positions and offices in 
          Office of the Secretary of Defense.
Sec. 904. Redesignation of the position of Assistant to the Secretary of 
          Defense for Atomic Energy.
Sec. 905. Joint Requirements Oversight Council.
Sec. 906. Restructuring of Department of Defense acquisition 
          organization and workforce.
Sec. 907. Report on Nuclear Posture Review and on plans for nuclear 
          weapons management in event of abolition of Department of 
          Energy.
Sec. 908. Redesignation of Advanced Research Projects Agency.

                    Subtitle B--Financial Management

Sec. 911. Transfer authority regarding funds available for foreign 
          currency fluctuations.
Sec. 912. Defense Modernization Account.
Sec. 913. Designation and liability of disbursing and certifying 
          officials.
Sec. 914. Fisher House trust funds.
Sec. 915. Limitation on use of authority to pay for emergency and 
          extraordinary expenses.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Improved funding mechanisms for unbudgeted operations.
Sec. 1004. Operation Provide Comfort.
Sec. 1005. Operation Enhanced Southern Watch.
Sec. 1006. Authority for obligation of certain unauthorized fiscal year 
          1995 defense appropriations.
Sec. 1007. Authorization of prior emergency supplemental appropriations 
          for fiscal year 1995.
Sec. 1008. Authorization reductions to reflect savings from revised 
          economic assumptions.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Iowa class battleships.
Sec. 1012. Transfer of naval vessels to certain foreign countries.
Sec. 1013. Contract options for LMSR vessels.
Sec. 1014. National Defense Reserve Fleet.
Sec. 1015. Naval salvage facilities.
Sec. 1016. Vessels subject to repair under phased maintenance contracts.
Sec. 1017. Clarification of requirements relating to repairs of vessels.
Sec. 1018. Sense of Congress concerning naming of amphibious ships.
Sec. 1019. Sense of Congress concerning naming of naval vessel.
Sec. 1020. Transfer of riverine patrol craft.

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Revision and clarification of authority for Federal support 
          of drug interdiction and counter-drug activities of the 
          National Guard.

                     Subtitle D--Civilian Personnel

Sec. 1031. Management of Department of Defense civilian personnel.
Sec. 1032. Conversion of military positions to civilian positions.
Sec. 1033. Elimination of 120-day limitation on details of certain 
          employees.
Sec. 1034. Authority for civilian employees of Department of Defense to 
          participate voluntarily in reductions in force.
Sec. 1035. Authority to pay severance payments in lump sums.
Sec. 1036. Continued health insurance coverage.
Sec. 1037. Revision of authority for appointments of involuntarily 
          separated military reserve technicians.
Sec. 1038. Wearing of uniform by National Guard technicians.
Sec. 1039. Military leave for military reserve technicians for certain 
          duty overseas.
Sec. 1040. Personnel actions involving employees of nonappropriated fund 
          instrumentalities.
Sec. 1041. Coverage of nonappropriated fund employees under authority 
          for flexible and compressed work schedules.
Sec. 1042. Limitation on provision of overseas living quarters 
          allowances for nonappropriated fund instrumentality employees.
Sec. 1043. Elections relating to retirement coverage.
Sec. 1044. Extension of temporary authority to pay civilian employees 
          with respect to the evacuation from Guantanamo, Cuba.

            Subtitle E--Miscellaneous Reporting Requirements

Sec. 1051. Report on fiscal year 1997 budget submission regarding Guard 
          and reserve components.
Sec. 1052. Report on desirability and feasibility of providing authority 
          for use of funds derived from recovered losses resulting from 
          contractor fraud.
Sec. 1053. Report on national policy on protecting the national 
          information infrastructure against strategic attacks.
Sec. 1054. Report on Department of Defense boards and commissions.
Sec. 1055. Date for submission of annual report on special access 
          programs.

   Subtitle F--Repeal of Certain Reporting and Other Requirements and 
                               Authorities

Sec. 1061. Miscellaneous provisions of law.
Sec. 1062. Reports required by title 10, United States Code.
Sec. 1063. Reports required by defense authorization and appropriations 
          Acts.
Sec. 1064. Reports required by other provisions of law.

          Subtitle G--Department of Defense Education Programs

Sec. 1071. Continuation of Uniformed Services University of the Health 
          Sciences.
Sec. 1072. Additional graduate schools and programs at Uniformed 
          Services University of the Health Sciences.
Sec. 1073. Funding for adult education programs for military personnel 
          and dependents outside the United States.
Sec. 1074. Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and Department of 
          Defense civilian employees.
Sec. 1075. Sharing of personnel of Department of Defense domestic 
          dependent schools and defense dependents' education system.
Sec. 1076. Increase in reserve component Montgomery GI Bill educational 
          assistance allowance with respect to skills or specialties for 
          which there is a critical shortage of personnel.
Sec. 1077. Date for annual report on reserve component Montgomery GI 
          Bill educational assistance program.
Sec. 1078. Scope of education programs of Community College of the Air 
          Force.
Sec. 1079. Amendments to education loan repayment programs.

                        Subtitle H--Other Matters

Sec. 1081. National defense technology and industrial base, defense 
          reinvestment, and defense conversion programs.
Sec. 1082. Ammunition industrial base.
Sec. 1083. Policy concerning excess defense industrial capacity.
Sec. 1084. Sense of Congress concerning access to secondary school 
          student information for recruiting purposes.
Sec. 1085. Disclosure of information concerning unaccounted for United 
          States personnel from the Korean Conflict, the Vietnam era, 
          and the Cold War.
Sec. 1086. Operational support airlift aircraft fleet.
Sec. 1087. Civil Reserve Air Fleet.
Sec. 1088. Damage or loss to personal property due to emergency 
          evacuation or extraordinary circumstances.
Sec. 1089. Authority to suspend or terminate collection actions against 
          deceased members.
Sec. 1090. Check cashing and exchange transactions for dependents of 
          United States Government personnel.
Sec. 1091. Designation of National Maritime Center.
Sec. 1092. Sense of Congress regarding historic preservation of Midway 
          Islands.
Sec. 1093. Sense of Senate regarding Federal spending.
Sec. 1094. Extension of authority for vessel war risk insurance.

               TITLE XI--UNIFORM CODE OF MILITARY JUSTICE

Sec. 1101. Short title.
Sec. 1102. References to Uniform Code of Military Justice.

                          Subtitle A--Offenses

Sec. 1111. Refusal to testify before court-martial.
Sec. 1112. Flight from apprehension.
Sec. 1113. Carnal knowledge.

                          Subtitle B--Sentences

Sec. 1121. Effective date for forfeitures of pay and allowances and 
          reductions in grade by sentence of court-martial.
Sec. 1122. Required forfeiture of pay and allowances during confinement.
Sec. 1123. Deferment of confinement.

               Subtitle C--Pretrial and Post-Trial Actions

Sec. 1131. Article 32 investigations.
Sec. 1132. Submission of matters to the convening authority for 
          consideration.
Sec. 1133. Commitment of accused to treatment facility by reason of lack 
          of mental capacity or mental responsibility.

                      Subtitle D--Appellate Matters

Sec. 1141. Appeals by the United States.
Sec. 1142. Repeal of termination of authority for Chief Justice of 
          United States to designate Article III judges for temporary 
          service on Court of Appeals for the Armed Forces.

                        Subtitle E--Other Matters

Sec. 1151. Advisory committee on criminal law jurisdiction over 
          civilians accompanying the Armed Forces in time of armed 
          conflict.
Sec. 1152. Time after accession for initial instruction in the Uniform 
          Code of Military Justice.
Sec. 1153. Technical amendment.

  TITLE XII--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET 
                                  UNION

Sec. 1201. Specification of Cooperative Threat Reduction programs.
Sec. 1202. Fiscal year 1996 funding allocations.
Sec. 1203. Prohibition on use of funds for peacekeeping exercises and 
          related activities with Russia.
Sec. 1204. Revision to authority for assistance for weapons destruction.
Sec. 1205. Prior notice to Congress of obligation of funds.
Sec. 1206. Report on accounting for United States assistance.
Sec. 1207. Limitation on assistance to nuclear weapons scientists of 
          former Soviet Union.
Sec. 1208. Limitations relating to offensive biological warfare program 
          of Russia.
Sec. 1209. Limitation on use of funds for chemical weapons destruction 
          facility.

              TITLE XIII--MATTERS RELATING TO OTHER NATIONS

                   Subtitle A--Peacekeeping Provisions

Sec. 1301. Limitation on use of Department of Defense funds for United 
          States share of costs of United Nations peacekeeping 
          activities.

              Subtitle B--Humanitarian Assistance Programs

Sec. 1311. Overseas humanitarian, disaster, and civic aid programs.
Sec. 1312. Humanitarian assistance.
Sec. 1313. Landmine clearance program.

            Subtitle C--Arms Exports and Military Assistance

Sec. 1321. Defense export loan guarantees.
Sec. 1322. National security implications of United States export 
          control policy.
Sec. 1323. Department of Defense review of export licenses for certain 
          biological pathogens.
Sec. 1324. Annual reports on improving export control mechanisms and on 
          military assistance.
Sec. 1325. Report on personnel requirements for control of transfer of 
          certain weapons.

  Subtitle D--Burdensharing and Other Cooperative Activities Involving 
                             Allies and NATO

Sec. 1331. Accounting for burdensharing contributions.
Sec. 1332. Authority to accept contributions for expenses of relocation 
          within host nation of United States Armed Forces overseas.
Sec. 1333. Revised goal for allied share of costs for United States 
          installations in Europe.
Sec. 1334. Exclusion of certain forces from European end strength 
          limitation.
Sec. 1335. Cooperative research and development agreements with NATO 
          organizations.
Sec. 1336. Support services for the Navy at the port of Haifa, Israel.

                        Subtitle E--Other Matters

Sec. 1341. Prohibition on financial assistance to terrorist countries.
Sec. 1342. Judicial assistance to the International Tribunal for 
          Yugoslavia and to the International Tribunal for Rwanda.
Sec. 1343. Semiannual reports concerning United States-People's Republic 
          of China Joint Defense Conversion Commission.

                     TITLE XIV--ARMS CONTROL MATTERS

Sec. 1401. Revision of definition of landmine for purposes of landmine 
          export moratorium.
Sec. 1402. Reports on moratorium on use by Armed Forces of antipersonnel 
          landmines.
Sec. 1403. Extension and amendment of counterproliferation authorities.
Sec. 1404. Limitation on retirement or dismantlement of strategic 
          nuclear delivery systems.
Sec. 1405. Sense of Congress on ABM treaty violations.
Sec. 1406. Sense of Congress on ratification of Chemical Weapons 
          Convention and START II Treaty.
Sec. 1407. Implementation of arms control agreements.
Sec. 1408. Iran and Iraq arms nonproliferation.

               TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

Sec. 1501. Amendments related to Reserve Officer Personnel Management 
          Act.
Sec. 1502. Amendments to reflect name change of Committee on Armed 
          Services of the House of Representatives.
Sec. 1503. Miscellaneous amendments to title 10, United States Code.
Sec. 1504. Miscellaneous amendments to annual defense authorization 
          Acts.
Sec. 1505. Miscellaneous amendments to other laws.
Sec. 1506. Coordination with other amendments.

TITLE XVI--CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE AND FIREARMS 
                                 SAFETY

Sec. 1601. Short title.

         Subtitle A--Establishment and Operation of Corporation

Sec. 1611. Establishment of the Corporation.
Sec. 1612. Conduct of Civilian Marksmanship Program.
Sec. 1613. Eligibility for participation in Civilian Marksmanship 
          Program.
Sec. 1614. Issuance, loan, and sale of firearms and ammunition by the 
          Corporation.
Sec. 1615. Transfer of firearms and ammunition from the Army to the 
          Corporation.
Sec. 1616. Reservation by the Army of firearms and ammunition for the 
          Corporation.
Sec. 1617. Army logistical support for the program.
Sec. 1618. General authorities of the Corporation.
Sec. 1619. Distribution of Corporate assets in event of dissolution.

                   Subtitle B--Transitional Provisions

Sec. 1621. Transfer of funds and property to the Corporation.
Sec. 1622. Continuation of eligibility for certain civil service 
          benefits for former Federal employees of Civilian Marksmanship 
          Program.
Sec. 1623. Certification of completion of transition.
Sec. 1624. Repeal of authority for conduct of Civilian Marksmanship 
          Program by the Army.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Revision of fiscal year 1995 authorization of appropriations 
          to clarify availability of funds for large anechoic chamber 
          facility, Patuxent River Naval Warfare Center, Maryland.
Sec. 2206. Authority to carry out land acquisition project, Hampton 
          Roads, Virginia.
Sec. 2207. Acquisition of land, Henderson Hall, Arlington, Virginia.
Sec. 2208. Acquisition or construction of military family housing in 
          vicinity of San Diego, California.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Retention of accrued interest on funds deposited for 
          construction of family housing, Scott Air Force Base, 
          Illinois.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Military family housing private investment.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Limitations on use of Department of Defense Base Closure 
          Account 1990.
Sec. 2407. Modification of authority to carry out fiscal year 1995 
          projects.
Sec. 2408. Reduction in amounts authorized to be appropriated for fiscal 
          year 1994 contingency construction projects.

      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.
Sec. 2602. Reduction in amount authorized to be appropriated for fiscal 
          year 1994 Air National Guard Projects.
Sec. 2603. Correction in authorized uses of funds for Army National 
          Guard projects in Mississippi.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
          specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1993 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1992 
          projects.

                    TITLE XXVIII--GENERAL PROVISIONS

          Subtitle A--Military Housing Privatization Initiative

Sec. 2801. Alternative authority for construction and improvement of 
          military housing.
Sec. 2802. Expansion of authority for limited partnerships for 
          development of military family housing.

  Subtitle B--Other Military Construction Program and Military Family 
                             Housing Changes

Sec. 2811. Special threshold for unspecified minor construction projects 
          to correct life, health, or safety deficiencies.
Sec. 2812. Clarification of scope of unspecified minor construction 
          authority.
Sec. 2813. Temporary authority to waive net floor area limitation for 
          family housing acquired in lieu of construction.
Sec. 2814. Reestablishment of authority to waive net floor area 
          limitation on acquisition by purchase of certain military 
          family housing.
Sec. 2815. Temporary authority to waive limitations on space by pay 
          grade for military family housing units.
Sec. 2816. Rental of family housing in foreign countries.
Sec. 2817. Clarification of scope of report requirement on cost 
          increases under contracts for military family housing 
          construction.
Sec. 2818. Authority to convey damaged or deteriorated military family 
          housing.
Sec. 2819. Energy and water conservation savings for the Department of 
          Defense.
Sec. 2820. Extension of authority to enter into leases of land for 
          special operations activities.
Sec. 2821. Disposition of amounts recovered as a result of damage to 
          real property.
Sec. 2822. Pilot program to provide interest rate buy down authority on 
          loans for housing within housing shortage areas at military 
          installations.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2831. Deposit of proceeds from leases of property located at 
          installations being closed or realigned.
Sec. 2832. In-kind consideration for leases at installations to be 
          closed or realigned.
Sec. 2833. Interim leases of property approved for closure or 
          realignment.
Sec. 2834. Authority to lease property requiring environmental 
          remediation at installations approved for closure or 
          realignment.
Sec. 2835. Final funding for Defense Base Closure and Realignment 
          Commission.
Sec. 2836. Exercise of authority delegated by the Administrator of 
          General Services.
Sec. 2837. Lease back of property disposed from installations approved 
          for closure or realignment.
Sec. 2838. Improvement of base closure and realignment process regarding 
          disposal of property.
Sec. 2839. Agreements for certain services at installations being 
          closed.
Sec. 2840. Authority to transfer property at military installations to 
          be closed to persons who construct or provide military family 
          housing.
Sec. 2841. Use of single base closure authorities for disposal of 
          property and facilities at Fort Holabird, Maryland.

                 Subtitle D--Land Conveyances Generally

                        Part I--Army Conveyances

Sec. 2851. Transfer of jurisdiction, Fort Sam Houston, Texas.
Sec. 2852. Transfer of jurisdiction, Fort Bliss, Texas.
Sec. 2853. Transfer of jurisdiction and land conveyance, Fort Devens 
          Military Reservation, Massachusetts.
Sec. 2854. Modification of land conveyance, Fort Belvoir, Virginia.
Sec. 2855. Land exchange, Fort Lewis, Washington.
Sec. 2856. Land exchange, Army Reserve Center, Gainesville, Georgia.
Sec. 2857. Land conveyance, Holston Army Ammunition Plant, Mount Carmel, 
          Tennessee.
Sec. 2858. Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
          Indiana.
Sec. 2859. Land conveyance, Fort Ord, California.
Sec. 2860. Land conveyance, Parks Reserve Forces Training Area, Dublin, 
          California.
Sec. 2861. Land conveyance, Army Reserve Center, Youngstown, Ohio.
Sec. 2862. Land conveyance, Army Reserve Property, Fort Sheridan, 
          Illinois.
Sec. 2863. Land conveyance, property underlying Cummins Apartment 
          Complex, Fort Holabird, Maryland.
Sec. 2864. Modification of existing land conveyance, Army property, 
          Hamilton Air Force Base, California.

                        Part II--Navy Conveyances

Sec. 2865. Transfer of jurisdiction, Naval Weapons Industrial Reserve 
          Plant, Calverton, New York.
Sec. 2866. Modification of land conveyance, Naval Weapons Industrial 
          Reserve Plant, Calverton, New York.
Sec. 2867. Land conveyance alternative to existing lease authority, 
          Naval Supply Center, Oakland, California.
Sec. 2868. Land conveyance, Naval Weapons Industrial Reserve Plant, 
          McGregor, Texas.
Sec. 2869. Land conveyance, Naval Surface Warfare Center, Memphis, 
          Tennessee.
Sec. 2870. Land conveyance, Navy property, Fort Sheridan, Illinois.
Sec. 2871. Land conveyance, Naval Communications Station, Stockton, 
          California.
Sec. 2872. Lease of property, Naval Air Station and Marine Corps Air 
          Station, Miramar, California.

                     Part III--Air Force Conveyances

Sec. 2874. Land acquisition or exchange, Shaw Air Force Base, South 
          Carolina.
Sec. 2875. Land conveyance, Elmendorf Air Force Base, Alaska.
Sec. 2876. Land conveyance, Radar Bomb Scoring Site, Forsyth, Montana.
Sec. 2877. Land conveyance, Radar Bomb Scoring Site, Powell, Wyoming.
Sec. 2878. Land conveyance, Avon Park Air Force Range, Florida.

            Subtitle E--Land Conveyances Involving Utilities

Sec. 2881. Conveyance of resource recovery facility, Fort Dix, New 
          Jersey.
Sec. 2882. Conveyance of water and wastewater treatment plants, Fort 
          Gordon, Georgia.
Sec. 2883. Conveyance of electricity distribution system, Fort Irwin, 
          California.
Sec. 2884. Conveyance of water treatment plant, Fort Pickett, Virginia.

                        Subtitle F--Other Matters

Sec. 2891. Authority to use funds for certain educational purposes.
Sec. 2892. Department of Defense Laboratory Revitalization Demonstration 
          Program.
Sec. 2893. Authority for Port Authority of State of Mississippi to use 
          Navy property at Naval Construction Battalion Center, 
          Gulfport, Mississippi.
Sec. 2894. Prohibition on joint use of Naval Air Station and Marine 
          Corps Air Station, Miramar, California.
Sec. 2895. Report regarding Army water craft support facilities and 
          activities.
Sec. 2896. Residual value reports.
Sec. 2897. Sense of Congress and report regarding Fitzsimons Army 
          Medical Center, Colorado.

  TITLE XXIX--LAND CONVEYANCES INVOLVING JOLIET ARMY AMMUNITION PLANT, 
                                ILLINOIS

Sec. 2901. Short title.
Sec. 2902. Definitions.

   Subtitle A--Conversion of Joliet Army Ammunition Plant to Midewin 
                       National Tallgrass Prairie

Sec. 2911. Principles of transfer.
Sec. 2912. Transfer of management responsibilities and jurisdiction over 
          Arsenal.
Sec. 2913. Responsibility and liability.
Sec. 2914. Establishment and administration of Midewin National 
          Tallgrass Prairie.
Sec. 2915. Special management requirements for Midewin National 
          Tallgrass Prairie.
Sec. 2916. Special transfer rules for certain Arsenal parcels intended 
          for MNP.

  Subtitle B--Other Land Conveyances Involving Joliet Army Ammunition 
                                  Plant

Sec. 2921. Conveyance of certain real property at Arsenal for a national 
          cemetery.
Sec. 2922. Conveyance of certain real property at Arsenal for a county 
          landfill.
Sec. 2923. Conveyance of certain real property at Arsenal for industrial 
          parks.

                  Subtitle C--Miscellaneous Provisions

Sec. 2931. Degree of environmental cleanup.
Sec. 2932. Retention of property used for environmental cleanup.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
          activities.
Sec. 3127. Funds available for all national security programs of the 
          Department of Energy.
Sec. 3128. Availability of funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Authority to conduct program relating to fissile materials.
Sec. 3132. National Ignition Facility.
Sec. 3133. Tritium production program.
Sec. 3134. Payment of penalties.
Sec. 3135. Fissile materials disposition.
Sec. 3136. Tritium recycling.
Sec. 3137. Manufacturing infrastructure for refabrication and 
          certification of nuclear weapons stockpile.
Sec. 3138. Hydronuclear experiments.
Sec. 3139. Limitation on authority to conduct hydronuclear tests.
Sec. 3140. Fellowship program for development of skills critical to the 
          Department of Energy nuclear weapons complex.
Sec. 3141. Limitation on use of funds for certain research and 
          development purposes.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
          spent nuclear fuel rods.
Sec. 3143. Protection of workers at nuclear weapons facilities.
Sec. 3144. Department of Energy Declassification Productivity 
          Initiative.

                        Subtitle D--Other Matters

Sec. 3151. Report on foreign tritium purchases.
Sec. 3152. Study on nuclear test readiness postures.
Sec. 3153. Master plan for the certification, stewardship, and 
          management of warheads in the nuclear weapons stockpile.
Sec. 3154. Prohibition on international inspections of Department of 
          Energy facilities unless protection of restricted data is 
          certified.
Sec. 3155. Review of certain documents before declassification and 
          release.
Sec. 3156. Accelerated schedule for environmental restoration and waste 
          management activities.
Sec. 3157. Sense of Congress regarding certain environmental restoration 
          requirements.
Sec. 3158. Responsibility for Defense Programs Emergency Response 
          Program.
Sec. 3159. Requirements for Department of Energy weapons activities 
          budgets for fiscal years after fiscal year 1996.
Sec. 3160. Report on hydronuclear testing.
Sec. 3161. Applicability of Atomic Energy Community Act of 1955 to Los 
          Alamos, New Mexico.
Sec. 3162. Sense of Congress regarding shipments of spent nuclear fuel.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

         Subtitle A--Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of chromite and manganese ores and chromium ferro 
          and manganese metal electrolytic.
Sec. 3304. Restrictions on disposal of manganese ferro.
Sec. 3305. Titanium initiative to support battle tank upgrade program.

                     Subtitle B--Programmatic Change

Sec. 3311. Transfer of excess defense-related materials to stockpile for 
          disposal.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

         Subtitle A--Administration of Naval Petroleum Reserves

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
          year 1996.
Sec. 3403. Extension of operating contract for Naval Petroleum Reserve 
          Numbered 1.

               Subtitle B--Sale of Naval Petroleum Reserve

Sec. 3411. Definitions.
Sec. 3412. Sale of Naval Petroleum Reserve Numbered 1.
Sec. 3413. Effect of sale of reserve.
Sec. 3414. Conditions on sale process.
Sec. 3415. Treatment of State of California claim regarding reserve.
Sec. 3416. Study of future of other naval petroleum reserves.

                   TITLE XXXV--PANAMA CANAL COMMISSION

               Subtitle A--Authorization of Appropriations

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Expenditures in accordance with other laws.

   Subtitle B--Reconstitution of Commission as Government Corporation

Sec. 3521. Short title.
Sec. 3522. Reconstitution of Commission as Government corporation.
Sec. 3523. Supervisory Board.
Sec. 3524. General and specific powers of Commission.
Sec. 3525. Congressional review of budget.
Sec. 3526. Audits.
Sec. 3527. Prescription of measurement rules and rates of tolls.
Sec. 3528. Procedures for changes in rules of measurement and rates of 
          tolls.
Sec. 3529. Miscellaneous technical amendments.
Sec. 3530. Conforming amendment to title 31, United States Code.

                 DIVISION D--FEDERAL ACQUISITION REFORM

Sec. 4001. Short title.

                         TITLE XLI--COMPETITION

Sec. 4101. Efficient competition.
Sec. 4102. Efficient approval procedures.
Sec. 4103. Efficient competitive range determinations.
Sec. 4104. Preaward debriefings.
Sec. 4105. Design-build selection procedures.

                      TITLE XLII--COMMERCIAL ITEMS

Sec. 4201. Commercial item exception to requirement for cost or pricing 
          data.
Sec. 4202. Application of simplified procedures to certain commercial 
          items.
Sec. 4203. Inapplicability of certain procurement laws to commercially 
          available off-the-shelf items.
Sec. 4204. Amendment of commercial items definition.
Sec. 4205. Inapplicability of cost accounting standards to contracts and 
          subcontracts for commercial items.

                TITLE XLIII--ADDITIONAL REFORM PROVISIONS

          Subtitle A--Additional Acquisition Reform Provisions

Sec. 4301. Elimination of certain certification requirements.
Sec. 4302. Authorities conditioned on FACNET capability.
Sec. 4303. International competitiveness.
Sec. 4304. Procurement integrity.
Sec. 4305. Further acquisition streamlining provisions.
Sec. 4306. Value engineering for Federal agencies.
Sec. 4307. Acquisition workforce.
Sec. 4308. Demonstration project relating to certain personnel 
          management policies and procedures.
Sec. 4309. Cooperative purchasing.
Sec. 4310. Procurement notice technical amendments.
Sec. 4311. Micro-purchases without competitive quotations.

                    Subtitle B--Technical Amendments

Sec. 4321. Amendments related to Federal Acquisition Streamlining Act of 
          1994.
Sec. 4322. Miscellaneous amendments to Federal acquisition laws.

             TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

Sec. 4401. Effective date and applicability.
Sec. 4402. Implementing regulations.

          DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

Sec. 5001. Short title.
Sec. 5002. Definitions.

   TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                      Subtitle A--General Authority

Sec. 5101. Repeal of central authority of the Administrator of General 
          Services.

       Subtitle B--Director of the Office of Management and Budget

Sec. 5111. Responsibility of Director.
Sec. 5112. Capital planning and investment control.
Sec. 5113. Performance-based and results-based management.

                     Subtitle C--Executive Agencies

Sec. 5121. Responsibilities.
Sec. 5122. Capital planning and investment control.
Sec. 5123. Performance and results-based management.
Sec. 5124. Acquisitions of information technology.
Sec. 5125. Agency Chief Information Officer.
Sec. 5126. Accountability.
Sec. 5127. Significant deviations.
Sec. 5128. Interagency support.

                   Subtitle D--Other Responsibilities

Sec. 5131. Responsibilities regarding efficiency, security, and privacy 
          of Federal computer systems.
Sec. 5132. Sense of Congress.

                  Subtitle E--National Security Systems

Sec. 5141. Applicability to national security systems.
Sec. 5142. National security system defined.

      TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

Sec. 5201. Procurement procedures.
Sec. 5202. Incremental acquisition of information technology.

      TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

                  Subtitle A--Conduct of Pilot Programs

Sec. 5301. Authority to conduct pilot programs.
Sec. 5302. Evaluation criteria and plans.
Sec. 5303. Report.
Sec. 5304. Recommended legislation.
Sec. 5305. Rule of construction.

                   Subtitle B--Specific Pilot Programs

Sec. 5311. Share-in-savings pilot program.
Sec. 5312. Solutions-based contracting pilot program.

     TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

Sec. 5401. On-line multiple award schedule contracting.
Sec. 5402. Identification of excess and surplus computer equipment.
Sec. 5403. Access of certain information in information systems to the 
          directory established under section 4101 of title 44, United 
          States Code.

   TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

Sec. 5501. Period for processing protests.
Sec. 5502. Availability of funds following GAO resolution of challenge 
          to contracting action.

              TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

Sec. 5601. Amendments to title 10, United States Code.
Sec. 5602. Amendments to title 28, United States Code.
Sec. 5603. Amendment to title 31, United States Code.
Sec. 5604. Amendments to title 38, United States Code.
Sec. 5605. Provisions of title 44, United States Code, relating to 
          paperwork reduction.
Sec. 5606. Amendment to title 49, United States Code.
Sec. 5607. Other laws.
Sec. 5608. Clerical amendments.

      TITLE LVII--EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF 
                              CONSTRUCTION

Sec. 5701. Effective date.
Sec. 5702. Savings provisions.
Sec. 5703. Rules of construction.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

    For purposes of this Act, the term ``congressional defense 
committees'' means--
            (1) the Committee on Armed Services and the 
        Committee on Appropriations of the Senate; and
            (2) the Committee on National Security and the 
        Committee on Appropriations of the House of 
        Representatives.

SEC. 4. EXTENSION OF TIME FOR SUBMISSION OF REPORTS.

    In the case of any provision of this Act, or any amendment 
made by a provision of this Act, requiring the submission of a 
report to Congress (or any committee of Congress), that report 
shall be submitted not later than the later of--
            (1) the date established for submittal of the 
        report in such provision or amendment; or
            (2) the date that is 45 days after the date of the 
        enactment of this Act.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal 
year 1996 for procurement for the Army as follows:
            (1) For aircraft, $1,558,805,000.
            (2) For missiles, $865,555,000.
            (3) For weapons and tracked combat vehicles, 
        $1,652,745,000.
            (4) For ammunition, $1,093,991,000.
            (5) For other procurement, $2,763,443,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated 
for fiscal year 1996 for procurement for the Navy as follows:
            (1) For aircraft, $4,572,394,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,659,827,000.
            (3) For shipbuilding and conversion, 
        $6,643,958,000.
            (4) For other procurement, $2,414,771,000.
    (b) Marine Corps.--Funds are hereby authorized to be 
appropriated for fiscal year 1996 for procurement for the 
Marine Corps in the amount of $458,947,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby 
authorized to be appropriated for procurement of ammunition for 
the Navy and the Marine Corps in the amount of $430,053,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal 
year 1996 for procurement for the Air Force as follows:
            (1) For aircraft, $7,349,783,000.
            (2) For missiles, $2,938,883,000.
            (3) For ammunition, $343,848,000.
            (4) For other procurement, $6,268,430,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal 
year 1996 for Defense-wide procurement in the amount of 
$2,124,379,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1996 for procurement of aircraft, vehicles, communications 
equipment, and other equipment for the reserve components of 
the Armed Forces as follows:
            (1) For the Army National Guard, $160,000,000.
            (2) For the Air National Guard, $255,000,000.
            (3) For the Army Reserve, $85,700,000.
            (4) For the Naval Reserve, $67,000,000.
            (5) For the Air Force Reserve, $135,600,000.
            (6) For the Marine Corps Reserve, $73,700,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal 
year 1996 for procurement for the Inspector General of the 
Department of Defense in the amount of $1,000,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal 
year 1996 the amount of $672,250,000 for--
            (1) the destruction of lethal chemical agents and 
        munitions in accordance with section 1412 of the 
        Department of Defense Authorization Act, 1986 (50 
        U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of 
        the United States that is not covered by section 1412 
        of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1996 for the Department of Defense for procurement for 
carrying out health care programs, projects, and activities of 
the Department of Defense in the total amount of $288,033,000.

                       Subtitle B--Army Programs

SEC. 111. PROCUREMENT OF OH-58D ARMED KIOWA WARRIOR HELICOPTERS.

    The prohibition in section 133(a)(2) of the National 
Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189; 103 Stat. 1383) does not apply to the 
obligation of funds in amounts not to exceed $140,000,000 for 
the procurement of not more than 20 OH-58D Armed Kiowa Warrior 
aircraft from funds appropriated for fiscal year 1996 pursuant 
to section 101.

SEC. 112. REPEAL OF REQUIREMENTS FOR ARMORED VEHICLE UPGRADES.

    Subsection (j) of section 21 of the Arms Export Control Act 
(22 U.S.C. 2761) is repealed.

SEC. 113. MULTIYEAR PROCUREMENT OF HELICOPTERS.

    The Secretary of the Army may, in accordance with section 
2306b of title 10, United States Code, enter into multiyear 
procurement contracts for procurement of the following:
            (1) AH-64D Longbow Apache attack helicopters.
            (2) UH-60 Black Hawk utility helicopters.

SEC. 114. REPORT ON AH-64D ENGINE UPGRADES.

    No later than February 1, 1996, the Secretary of the Army 
shall submit to Congress a report on plans to procure T700-701C 
engine upgrade kits for Army AH-64D helicopters. The report 
shall include--
            (1) a plan to provide for the upgrade of all Army 
        AH-64D helicopters with T700-701C engine kits 
        commencing in fiscal year 1996; and
            (2) a detailed timeline and statement of funding 
        requirements for the engine upgrade program described 
        in paragraph (1).

SEC. 115. REQUIREMENT FOR USE OF PREVIOUSLY AUTHORIZED MULTIYEAR 
                    PROCUREMENT AUTHORITY FOR ARMY SMALL ARMS 
                    PROCUREMENT.

    (a) Requirement.--The Secretary of the Army (subject to the 
provision of authority in an appropriations Act) shallenter 
into a multiyear procurement contract during fiscal year 1997 in 
accordance with section 115(b)(2) of the National Defense Authorization 
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2681).
    (b) Technical Amendment.--Section 115(b)(1) of the National 
Defense Authorization for Fiscal Year 1995 (Public Law 103-337; 
108 Stat. 2681) is amended by striking out ``2306(h)'' and 
inserting in lieu thereof ``2306b''.

                       Subtitle C--Navy Programs

SEC. 131. NUCLEAR ATTACK SUBMARINES.

    (a) Amounts Authorized.--(1) Of the amount authorized by 
section 102 to be appropriated for Shipbuilding and Conversion, 
Navy, for fiscal year 1996--
            (A) $700,000,000 is available for construction of 
        the third vessel (designated SSN-23) in the Seawolf 
        attack submarine class, which shall be the final vessel 
        in that class; and
            (B) $804,498,000 is available for long-lead and 
        advance construction and procurement of components for 
        construction of the fiscal year 1998 and fiscal year 
        1999 submarines (previously designated by the Navy as 
        the New Attack Submarine), of which--
                    (i) $704,498,000 shall be available for 
                long-lead and advance construction and 
                procurement for the fiscal year 1998 submarine, 
                which shall be built by Electric Boat Division; 
                and
                    (ii) $100,000,000 shall be available for 
                long-lead and advance construction and 
                procurement for the fiscal year 1999 submarine, 
                which shall be built by Newport News 
                Shipbuilding.
    (2) Of the amount authorized by section 201(2), $10,000,000 
shall be available only for participation of Newport News 
Shipbuilding in the design of the submarine previously 
designated by the Navy as the New Attack Submarine.
    (b) Competition, Report, and Budget Revision Limitations.--
(1) Of the amounts specified in subsection (a)(1), not more 
than $200,000,000 may be obligated or expended until the 
Secretary of the Navy certifies in writing to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives that procurement of 
nuclear attack submarines to be constructed beginning--
            (A) after fiscal year 1999, or
            (B) if four submarines are procured as provided for 
        in the plan described in subsection (c), after fiscal 
        year 2001,
will be under one or more contracts that are entered into after 
competition between potential competitors (as defined in 
subsection (k)) in which the Secretary solicits competitive 
proposals and awards the contract or contracts on the basis of 
price.
    (2) Of the amounts specified in subsection (a)(1), not more 
than $1,000,000,000 may be obligated or expended until the 
Secretary of Defense, not later than March 15, 1996, 
accomplishes each of the following:
            (A) Submits to the Committee on Armed Services of 
        the Senate and the Committee on National Security of 
        the House of Representatives in accordance with 
        subsection (c) the plan required by that subsection for 
        a program to produce a more capable, less expensive 
        nuclear attack submarine than the submarine design 
        previously designated by the Navy as the New Attack 
        Submarine.
            (B) Notwithstanding any other provision of law, or 
        the funding level in the President's budget for each 
        year after fiscal year 1996, the Under Secretary of 
        Defense (Comptroller) shall incorporate the costs of 
        the plan required by subsection (c) in the Future Years 
        Defense Program (FYDP) even if the total cost of that 
        Program exceeds the President's budget.
            (C) Directs that the Under Secretary of Defense for 
        Acquisition and Technology conduct oversight over the 
        development and improvement of the nuclear attack 
        submarine program of the Navy. Officials of the 
        Department of the Navy exercising management oversight 
        of the program shall report to the Under Secretary of 
        Defense for Acquisition and Technology with respect to 
        that program.
    (c) Plan for Fiscal Year 1998, 1999, 2000, and 2001 
Submarines.--(1) The Secretary of Defense shall, not later than 
March 15, 1996, develop (and submit to the committees specified 
in subsection (b)(2)(A)) a detailed plan for development of a 
program that will lead to production of a more capable, less 
expensive submarine than the submarine previously designated as 
the New Attack Submarine.
    (2) As part of such plan, the Secretary shall provide for a 
program for the design, development, and procurement of four 
nuclear attack submarines to be procured during fiscal years 
1998 through 2001, the purpose of which shall be to develop and 
demonstrate new technologies that will result in each 
successive submarine of those four being a more capable and 
more affordable submarine than the submarine that preceded it. 
The program shall be structured so that--
            (A) one of the four submarines is to be constructed 
        with funds appropriated for each fiscal year from 
        fiscal year 1998 through fiscal year 2001;
            (B) in order to ensure flexibility for innovation, 
        the fiscal year 1998 and the fiscal year 2000 
        submarines are to be constructed by the Electric Boat 
        Division and the fiscal year 1999 and the fiscal year 
        2001 submarines are to be constructed by Newport News 
        Shipbuilding;
            (C) the design designated by the Navy for the 
        submarine previously designated as the New Attack 
        Submarine will be used as the base design by both 
        contractors;
            (D) each contractor shall be called upon to propose 
        improvements, including design improvements, for each 
        successive submarine as new and better technology is 
        demonstrated and matures so that--
                    (i) each successive submarine is more 
                capable and more affordable; and
                    (ii) the design for a future class of 
                nuclear attack submarines will incorporate the 
                latest, best, and most affordable technology; 
                and
            (E) the fifth and subsequent nuclear attack 
        submarines to be built after the SSN-23 submarine shall 
        be procured as required by subsection (b)(1).
    (3) The plan under paragraph (1) shall--
            (A) set forth a program to accomplish the design, 
        development, and construction of the four submarines 
        taking maximum advantage of a streamlined acquisition 
        process, as provided under subsection (d);
            (B) culminate in selection of a design for a next 
        submarine for serial production not earlier than fiscal 
        year 2003, with such submarine to be procured as 
        required by subsection (b)(1);
            (C) identify advanced technologies that are in 
        various phases of research and development, as well as 
        those that are commercially available off-the-shelf, 
        that are candidates to be incorporated into the plan to 
        design, develop, and procure the submarines;
            (D) designate the fifth submarine to be procured as 
        the lead ship in the next generation submarine class, 
        unless the Secretary of the Navy, in consultation with 
        the special submarine review panel described in 
        subsection (f), determines that more submarines should 
        be built before the design of the new class of 
        submarines is fixed, in which case each such additional 
        submarine shall be procured in the same manner as is 
        required by subsection (b)(1); and
            (E) identify the impact of the submarine program 
        described in paragraph (1) on the remainder of the 
        appropriation account known as ``Shipbuilding and 
        Conversion, Navy'', as such impact relates to--
                    (i) force structure levels required by the 
                October 1993 Department of Defense report 
                entitled ``Report on the Bottom-Up Review'';
                    (ii) force structure levels required by the 
                1995 report on the Surface Ship Combatant Study 
                that was carried out for the Department of 
                Defense; and
                    (iii) the funding requirements for 
                submarine construction, as a percentage of the 
                total ship construction account, for each 
                fiscal year throughout the FYDP.
    (4) As part of such plan, the Secretary shall provide--
                    (A) cost estimates and schedules for 
                developing new technologies that may be used to 
                make submarines more capable and more 
                affordable; and
                    (B) an analysis of significant risks 
                associated with fielding the new technologies 
                on the schedule proposed by the Secretary and 
                significant increased risks that are likely to 
                be incurred by accelerating that schedule.
    (d) Streamlined Acquisition Process.--The Secretary of 
Defense shall prescribe and use streamlined acquisition 
policies and procedures to reduce the cost and increase the 
efficiency of the submarine program under this section.
    (e) Annual Revisions to Plan.--The Secretary shall submit 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
an annual update to the plan required to be submitted under 
subsection (b). Each such update shall be submitted concurrent 
with the President's budget submission to Congress for each of 
fiscal years 1998 through 2002.
    (f) Special Submarine Review Panel.--(1) The plan under 
subsection (c) and each annual update under subsection (e) 
shall be reviewed by a special bipartisan congressional panel 
working with the Navy. The panel shall consist of three members 
of the Committee on Armed Services of the Senate, who shall be 
designated by the chairman of that committee, and three members 
of the Committee on National Security of the House of 
Representatives, who shall be designated by the chairman of 
that committee. The members of the panel shall be briefed by 
the Secretary of the Navy on the status of the submarine 
modernization program and the status of submarine-related 
research and development under this section.
    (2) Not later than May 1 of each year, the panel shall 
report to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
on the panel's findings and recommendations regarding the 
progress of the Secretary in procuring a more capable, less 
expensive submarine. The panel may recommend any funding 
adjustments it believes appropriate to achieve this objective.
    (g) Linkage of Fiscal Year 1998 and 1999 Submarines.--Funds 
referred to in subsection (a)(1)(B) that are available for the 
fiscal year 1998 and fiscal year 1999 submarines under this 
section may not be expended during fiscal year 1996 for the 
fiscal year 1998 submarine (other than for design) unless funds 
are obligated or expended during such fiscal year for a 
contract in support of procurement of the fiscal year 1999 
submarine.
    (h) Contracts Authorized.--The Secretary of the Navy is 
authorized, using funds available pursuant to paragraph (1)(B) 
of subsection (a), to enter into contracts with Electric Boat 
Division and Newport News Shipbuilding, and suppliers of 
components, during fiscal year 1996 for--
            (1) the procurement of long-lead components for the 
        fiscal year 1998 submarine and the fiscal year 1999 
        submarine under this section; and
            (2) advance construction of such components and 
        other components for such submarines.
    (i) Advanced Research Projects Agency Development of 
Advanced Technologies.--(1) Of the amount provided in section 
201(4) for the Advanced Research Projects Agency, $100,000,000 
is available only for development and demonstration of advanced 
technologies for incorporation into the submarines constructed 
as part of the plan developed under subsection (c). Such 
advanced technologies shall include the following:
            (A) Electric drive.
            (B) Hydrodynamic quieting.
            (C) Ship control automation.
            (D) Solid-state power electronics.
            (E) Wake reduction technologies.
            (F) Superconductor technologies.
            (G) Torpedo defense technologies.
            (H) Advanced control concept.
            (I) Fuel cell technologies.
            (J) Propulsors.
    (2) The Director of the Advanced Research Projects Agency 
shall implement a rapid prototype acquisition strategy for both 
land-based and at-sea subsystem and system demonstrations of 
advanced technologies under paragraph (1). Such acquisition 
strategy shall be developed and implemented in concert with 
Electric Boat Division and Newport News Shipbuilding and the 
Navy.
    (j) References to Contractors.--For purposes of this 
section--
            (1) the contractor referred to as ``Electric Boat 
        Division'' is the Electric Boat Division of the General 
        Dynamics Corporation; and
            (2) the contractor referred to as ``Newport News 
        Shipbuilding'' is the Newport News Shipbuilding and 
        Drydock Company.
    (k) Potential Competitor Defined.--For purposes of this 
section, the term ``potential competitor'' means any source to 
which the Secretary of the Navy has awarded, within 10 years 
before the date of the enactment of this Act, a contract or 
contracts to construct one or more nuclear attack submarines.

SEC. 132. RESEARCH FOR ADVANCED SUBMARINE TECHNOLOGY.

    Of the amount appropriated for fiscal year 1996 for the 
National Defense Sealift Fund, $50,000,000 shall be available 
only for the Director of the Advanced Research Projects Agency 
for advanced submarine technology activities.

SEC. 133. COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

    (a) Limitation of Costs.--Except as provided in subsection 
(b), the total amount obligated or expended for procurement of 
the SSN-21, SSN-22, and SSN-23 Seawolf class submarines may not 
exceed $7,223,659,000.
    (b) Automatic Increase of Limitation Amount.--The amount of 
the limitation set forth in subsection (a) is increased by the 
following amounts:
            (1) The amounts of outfitting costs and post-
        delivery costs incurred for the submarines referred to 
        in such subsection.
            (2) The amounts of increases in costs attributable 
        to economic inflation after September 30, 1995.
            (3) The amounts of increases in costs attributable 
        to compliance with changes in Federal, State, or local 
        laws enacted after September 30, 1995.
    (c) Repeal of Superseded Provision.--Section 122 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2682) is repealed.

SEC. 134. REPEAL OF PROHIBITION ON BACKFIT OF TRIDENT SUBMARINES.

    Section 124 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2683) is 
repealed.

SEC. 135. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

    (a) Authorization for Procurement of Six Vessels.--The 
Secretary of the Navy is authorized to construct six Arleigh 
Burke class destroyers in accordance with this section. Within 
the amount authorized to be appropriated pursuant to section 
102(a)(3), $2,169,257,000 is authorized to be appropriated for 
construction (including advance procurement) for the Arleigh 
Burke class destroyers.
    (b) Contracts.--(1) The Secretary is authorized to enter 
into contracts in fiscal year 1996 for the construction of 
three Arleigh Burke class destroyers.
    (2) The Secretary is authorized, in fiscal year 1997, to 
enter into contracts for the construction of the other three 
Arleigh Burke class destroyers covered by subsection (a), 
subject to the availability of appropriations for such 
destroyers.
    (3) In awarding contracts for the six vessels covered by 
subsection (a), the Secretary shall continue the contract award 
pattern and sequence used by the Secretary for the procurement 
of Arleigh Burke class destroyers during fiscal years 1994 and 
1995.
    (4) A contract for construction of a vessel or vessels that 
is entered into in accordance with paragraph (1) shall include 
a clause that limits the liability of the Government to the 
contractor for any termination of the contract. The maximum 
liability of the Government under the clause shall be the 
amount appropriated for the vessel or vessels.
    (c) Use of Available Funds.--(1) Subject to paragraph (2), 
the Secretary may take appropriate actions to use for full 
funding of a contract entered into in accordance with 
subsection (b)--
            (A) any funds that, having been appropriated for 
        shipbuilding and conversion programs of the Navy other 
        than Arleigh Burke class destroyer programs pursuant to 
        the authorization in section 102(a)(3), become excess 
        to the needs of the Navy for such programs by reason of 
        cost savings achieved for such programs;
            (B) any unobligated funds that are available to the 
        Secretary for shipbuilding and conversion for any 
        fiscal year before fiscal year 1996; and
            (C) any funds that are appropriated after the date 
        of the enactment of the Department of Defense 
        Appropriations Act, 1996, to complete the full funding 
        of the contract.
    (2) The Secretary may not, in the exercise of authority 
provided in subparagraph (A) or (B) of paragraph (1), obligate 
funds for a contract entered into in accordance with subsection 
(b) until 30 days after the date on which the Secretary submits 
to the congressional defense committees in writing a 
notification of the intent to obligate the funds. The 
notification shall set forth the source or sources of the funds 
and the amount of the funds from each such source that is to be 
so obligated.

SEC. 136. ACQUISITION PROGRAM FOR CRASH ATTENUATING SEATS.

    (a) Program Authorized.--The Secretary of the Navy shall 
establish a program to procure for, and install in, H-53E 
military transport helicopters commercially developed, energy 
absorbing, crash attenuating seats that the Secretary 
determines are consistent with military specifications for 
seats for such helicopters.
    (b) Funding.--To the extent provided in appropriations 
Acts, of the unobligated balance of amounts appropriated for 
the Legacy Resource Management Program pursuant to the 
authorization of appropriations in section 301(5) of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2706), not more than $10,000,000 shall 
be available to the Secretary of the Navy, by transfer to the 
appropriate accounts, for carrying out the program authorized 
in subsection (a).

SEC. 137. T-39N TRAINER AIRCRAFT.

    (a) Limitation.--The Secretary of the Navy may not enter 
into a contract, using funds appropriated for fiscal year 1996 
for procurement of aircraft for the Navy, for the acquisition 
of the aircraft described in subsection (b) until 60 days after 
the date on which the Under Secretary of Defense for 
Acquisition and Technology submits to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives--
            (1) an analysis of the proposed acquisition of such 
        aircraft; and
            (2) a certification that the proposed acquisition 
        during fiscal year 1996 (A) is in the best interest of 
        the Government, and (B) is the most cost effective 
        means of meeting the requirements of the Navy for 
        aircraft for use in the training of naval flight 
        officers.
    (b) Covered Aircraft.--Subsection (a) applies to certain T-
39 trainer aircraft that as of November 1, 1995 (1) are used by 
the Navy under a lease arrangement for the training of naval 
flight officers, and (2) are offered for sale to the 
Government.

SEC. 138. PIONEER UNMANNED AERIAL VEHICLE PROGRAM.

    Not more than one-sixth of the amount appropriated pursuant 
to this Act for the activities and operations of the Unmanned 
Aerial Vehicle Joint Program Office (UAV-JPO), and none of the 
unobligated balances of funds appropriated for fiscal years 
before fiscal year 1996 for the activities and operations of 
such office, may be obligated until the Secretary of the Navy 
certifies to the Committee on Armed Services of theSenate and 
the Committee on National Security of the House of Representatives that 
funds have been obligated to equip nine Pioneer Unmanned Aerial Vehicle 
systems with the Common Automatic Landing and Recovery System (CARS).

                     Subtitle D--Air Force Programs

SEC. 141. B-2 AIRCRAFT PROGRAM.

    (a) Repeal of Limitations.--The following provisions of law 
are repealed:
            (1) Section 151(c) of the National Defense 
        Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 106 Stat. 2339).
            (2) Sections 131(c) and 131(d) of the National 
        Defense Authorization Act for Fiscal Year 1994 (Public 
        Law 103-160; 107 Stat. 1569).
            (3) Section 133(e) of the National Defense 
        Authorization Act for Fiscal Year 1995 (Public Law 103-
        337; 108 Stat. 2688).
    (b) Conversion of Limitation to Annual Report 
Requirement.--Section 112 of the National Defense Authorization 
Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 
Stat. 1373) is amended--
            (1) by striking out subsection (a);
            (2) by striking out the matter in subsection (b) 
        preceding paragraph (1) and inserting in lieu thereof 
        the following:
    ``(a) Annual Reporting Requirement.--Not later than March 1 
of each year, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report that 
sets forth the finding of the Secretary (as of January 1 of 
such year) on each of the following matters:'';
            (3) by striking out ``That'' in paragraphs (1), 
        (2), (3), (4), and (5) and inserting in lieu thereof 
        ``Whether'';
            (4) in paragraph (1), by striking out ``latest'' 
        and all that follows through ``100-180'' and inserting 
        in lieu thereof ``Requirements Correlation Matrix found 
        in the user-defined Operational Requirements Document 
        (as contained in Attachment B to a letter from the 
        Secretary of Defense to Congress dated October 14, 
        1993)'';
            (5) in paragraph (3), by striking out 
        ``congressional defense'';
            (6) in paragraph (4), by striking out ``such 
        certification to be submitted'';
            (7) by adding at the end the following:
    ``(b) First Report.--The Secretary shall submit the first 
annual report under subsection (a) not later than March 1, 
1996.''; and
            (8) by amending the section heading to read as 
        follows:

``SEC. 112. ANNUAL REPORT ON B-2 BOMBER AIRCRAFT PROGRAM.''.

    (c) Repeal of Condition on Obligation of Funds in Enhanced 
Bomber Capability Fund.--Section 133(d)(3) of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 108 Stat. 2688) is amended by striking out ``If,'' and all 
that follows through ``bombers, the Secretary'' and inserting 
in lieu thereof ``The Secretary''.

SEC. 142. PROCUREMENT OF B-2 BOMBERS.

    Of the amount authorized to be appropriated by section 103 
for the B-2 bomber procurement program, not more than 
$279,921,000 may be obligated or expended before March 31, 
1996.

SEC. 143. MC-130H AIRCRAFT PROGRAM.

    The limitation on the obligation of funds for payment of an 
award fee and the procurement of contractor-furnished equipment 
for the MC-130H Combat Talon aircraft set forth in section 
161(a) of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1388) shall 
cease to apply upon determination by the Director of 
Operational Test and Evaluation (and submission of a 
certification of that determination to the congressional 
defense committees) that, based on the operational test and 
evaluation and the analysis conducted on that aircraft to the 
date of that determination, such aircraft is operationally 
effective and meets the needs of its intended users.

             Subtitle E--Chemical Demilitarization Program

SEC. 151. REPEAL OF REQUIREMENT TO PROCEED EXPEDITIOUSLY WITH 
                    DEVELOPMENT OF CHEMICAL DEMILITARIZATION 
                    CRYOFRACTURE FACILITY AT TOOELE ARMY DEPOT, UTAH.

    Subsection (a) of section 173 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 103 Stat. 1393) is repealed.

SEC. 152. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL AGENTS 
                    AND MUNITIONS.

    (a) In General.--The Secretary of Defense shall proceed 
with the program for destruction of the chemical munitions 
stockpile of the Department of Defense while maintaining the 
maximum protection of the environment, the general public, and 
the personnel involved in the actual destruction of the 
munitions. In carrying out such program, the Secretary shall 
use technologies and procedures that will minimize the risk to 
the public at each site.
    (b) Initiation of Demilitarization Operations.--The 
Secretary of Defense may not initiate destruction of the 
chemical munitions stockpile stored at a site until the 
following support measures are in place:
            (1) Support measures that are required by 
        Department of Defense and Army chemical surety and 
        security program regulations.
            (2) Support measures that are required by the 
        general and site chemical munitions demilitarization 
        plans specific to that installation.
            (3) Support measures that are required by the 
        permits required by the Solid Waste Disposal Act (42 
        U.S.C. 6901 et seq.) and the Clean Air Act (42 U.S.C. 
        7401 et seq.) for chemical munitions demilitarization 
        operations at thatinstallation, as approved by the 
appropriate State regulatory agencies.
    (c) Assessment of Alternatives.--(1) The Secretary of 
Defense shall conduct an assessment of the current chemical 
demilitarization program and of measures that could be taken to 
reduce significantly the total cost of the program, while 
ensuring maximum protection of the general public, the 
personnel involved in the demilitarization program, and the 
environment. The measures considered shall be limited to those 
that would minimize the risk to the public. The assessment 
shall be conducted without regard to any limitation that would 
otherwise apply to the conduct of such an assessment under any 
provision of law.
    (2) The assessment shall be conducted in coordination with 
the National Research Council.
    (3) Based on the results of the assessment, the Secretary 
shall develop appropriate recommendations for revision of the 
chemical demilitarization program.
    (4) Not later than March 1, 1996, the Secretary of Defense 
shall submit to the congressional defense committees an interim 
report assessing the current status of the chemical stockpile 
demilitarization program, including the results of the Army's 
analysis of the physical and chemical integrity of the 
stockpile and implications for the chemical demilitarization 
program, and providing recommendations for revisions to that 
program that have been included in the budget request of the 
Department of Defense for fiscal year 1997. The Secretary shall 
submit to the congressional defense committees with the 
submission of the budget request of the Department of Defense 
for fiscal year 1998 a final report on the assessment conducted 
in accordance with paragraph (1) and recommendations for 
revision to the program, including an assessment of alternative 
demilitarization technologies and processes to the baseline 
incineration process and potential reconfiguration of the 
stockpile that should be incorporated in the program.
    (d) Assistance for Chemical Weapons Stockpile Communities 
Affected by Base Closure.--(1) The Secretary of Defense shall 
review and evaluate issues associated with closure and 
reutilization of Department of Defense facilities co-located 
with continuing chemical stockpile and chemical 
demilitarization operations.
    (2) The review shall include the following:
            (A) An analysis of the economic impacts on these 
        communities and the unique reuse problems facing local 
        communities associated with ongoing chemical weapons 
        programs.
            (B) Recommendations of the Secretary on methods for 
        expeditious and cost-effective transfer or lease of 
        these facilities to local communities for reuse by 
        those communities.
    (3) The Secretary shall submit to the congressional defense 
committees a report on the review and evaluation under this 
subsection. The report shall be submitted not later than 90 
days after the date of the enactment of this Act.

SEC. 153. ADMINISTRATION OF CHEMICAL DEMILITARIZATION PROGRAM.

    (a) Travel Funding for Members of Chemical Demilitarization 
Citizens' Advisory Commissions.--Section 172(g) of Public Law 
102-484 (50 U.S.C. 1521 note) is amended to read as follows:
    ``(g) Pay and Expenses.--Members of each commission shall 
receive no pay for their involvement in the activities of their 
commissions. Funds appropriated for the Chemical Stockpile 
Demilitarization Program may be used for travel and associated 
travel costs for Citizens' Advisory Commissioners, when such 
travel is conducted at the invitation of the Assistant 
Secretary of the Army (Research, Development, and 
Acquisition).''.
    (b) Quarterly Report Concerning Travel Funding for 
Citizens' Advisory Commissioners.--Section 1412(g) of the 
Department of Defense Authorization Act, 1986 (50 U.S.C. 
1521(g)), is amended--
            (1) by striking out ``(g) Annual Report.--'' and 
        inserting in lieu thereof ``(g) Periodic Reports.--'';
            (2) in paragraph (2)--
                    (A) by striking out ``Each such report 
                shall con- tain--'' and inserting in lieu 
                thereof ``Each annual report shall contain--''
                    (B) in subparagraph (B)--
                            (i) by striking out ``and'' at the 
                        end of clause (iv);
                            (ii) by striking out the period at 
                        the end of clause (v) and inserting in 
                        lieu thereof ``; and''; and
                            (iii) by adding at the end the 
                        following:
                    ``(vi) travel and associated travel costs 
                for Citizens' Advisory Commissioners under 
                section 172(g) of Public Law 102-484 (50 U.S.C. 
                1521 note).'';
            (3) by redesignating paragraph (3) as paragraph 
        (4);
            (4) by inserting after paragraph (2) the following 
        new paragraph (3):
    ``(3) The Secretary shall transmit to the Committee on 
Armed Services and the Committee on Appropriations of the 
Senate and the Committee on National Security and the Committee 
on Appropriations of the House of Representatives a quarterly 
report containing an accounting of all funds expended (during 
the quarter covered by the report) for travel and associated 
travel costs for Citizens' Advisory Commissioners under section 
172(g) of Public Law 102-484 (50 U.S.C. 1521 note). The 
quarterly report for the final quarter of the period covered by 
a report under paragraph (1) may be included in that report.''; 
and
            (5) in paragraph (4), as redesignated by paragraph 
        (3)--
                    (A) by striking out ``this subsection'' and 
                inserting in lieu thereof ``paragraph (1)''; 
                and
                    (B) by adding at the end the following: 
                ``No quarterly report is required under 
                paragraph (3) after the transmittal of the 
                final report under paragraph (1).''.
    (c) Director of Program.--Section 1412(e)(3) of the 
Department of Defense Authorization Act, 1986 (50 U.S.C. 
1521(e)(3)), is amended by inserting ``or civilian equivalent'' 
after ``general officer''.

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1996 for the use of the Department of Defense for 
research, development, test, and evaluation as follows:
            (1) For the Army, $4,737,581,000.
            (2) For the Navy, $8,474,783,000.
            (3) For the Air Force, $12,914,868,000.
            (4) For Defense-wide activities, $9,693,180,000, of 
        which--
                    (A) $251,082,000 is authorized for the 
                activities of the Director, Test and 
                Evaluation; and
                    (B) $22,587,000 is authorized for the 
                Director of Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC RESEARCH AND EXPLORATORY DEVELOPMENT.

    (a) Fiscal Year 1996.--Of the amounts authorized to be 
appropriated by section 201, $4,088,879,000 shall be available 
for basic research and exploratory development projects.
    (b) Basic Research and Exploratory Development Defined.--
For purposes of this section, the term ``basic research and 
exploratory development'' means work funded in program elements 
for defense research and development under Department of 
Defense category 6.1 or 6.2.

SEC. 203. MODIFICATIONS TO STRATEGIC ENVIRONMENTAL RESEARCH AND 
                    DEVELOPMENT PROGRAM.

    (a) Council Membership.--Section 2902(b) of title 10, 
United States Code, is amended--
            (1) by striking out ``thirteen'' and inserting in 
        lieu thereof ``12'';
            (2) by striking out paragraph (3);
            (3) by redesignating paragraphs (4), (5), (6), (7), 
        (8), (9), and (10) as paragraphs (3), (4), (5), (6), 
        (7), (8), and (9), respectively; and
            (4) in paragraph (8), as redesignated, by striking 
        out ``, who shall be nonvoting members''.
    (b) Annual Report.--(1) Section 2902 of such title is 
amended in subsection (d)--
            (A) by striking out paragraph (3) and inserting in 
        lieu thereof the following:
            ``(3) To prepare an annual report that contains the 
        following:
                    ``(A) A description of activities of the 
                strategic environmental research and 
                development program carried out during the 
                fiscal year before the fiscal year in which the 
                report is prepared.
                    ``(B) A general outline of the activities 
                planned for the program during the fiscal year 
                in which the report is prepared.
                    ``(C) A summary of projects continued from 
                the fiscal year before the fiscal year in which 
                the report is prepared and projects expected to 
                be started during the fiscal year in which the 
                report is prepared and during the following 
                fiscal year.''; and
            (B) in paragraph (4), by striking out ``Federal 
        Coordinating Council on Science, Engineering, and 
        Technology'' and inserting in lieu thereof ``National 
        Science and Technology Council''.
    (2) Section 2902 of such title is further amended--
            (A) by striking out subsections (f) and (h);
            (B) by redesignating subsection (g) as subsection 
        (f); and
            (C) by adding at the end the following new 
        subsection:
    ``(g)(1) Not later than February 1 of each year, the 
Council shall submit to the Secretary of Defense the annual 
report prepared pursuant to subsection (d)(3).
    ``(2) Not later than March 15 of each year, the Secretary 
of Defense shall submit such annual report to Congress, along 
with such comments as the Secretary considers appropriate.''.
    (3) The amendments made by this subsection shall apply with 
respect to the annual report prepared during fiscal year 1997 
and each fiscal year thereafter.
    (c) Policies and Procedures.--Section 2902(e) of such title 
is amended in paragraph (3) by striking out ``programs, 
particularly'' and all that follows through the end of the 
paragraph and inserting in lieu thereof ``programs;''.
    (d) Competitive Procedures.--Section 2903(c) of such title 
is amended--
            (1) by striking out ``or'' after ``contracts'' and 
        inserting in lieu thereof ``using competitive 
        procedures. The Executive Director may enter into''; 
        and
            (2) by striking out ``law, except that'' and 
        inserting in lieu thereof ``law. In either case,''.
    (e) Continuation of Expiring Authority.--(1) Section 
2903(d) of such title is amended in paragraph (2) by striking 
out the last sentence.
    (2) The amendment made by paragraph (1) shall take effect 
as of September 29, 1995.

SEC. 204. DEFENSE DUAL USE TECHNOLOGY INITIATIVE.

    (a) Fiscal Year 1996 Amount.--Of the amount authorized to 
be appropriated in section 201(4), $195,000,000 shall be 
available for the defense dual use technology initiative 
conducted under chapter 148 of title 10, United States Code.
    (b) Availability of Funds for Existing Technology 
Reinvestment Projects.--The Secretary of Defense shall use 
amounts made available for the defense dual use technology 
initiative under subsection (a) only for the purpose of 
continuing or completing technology reinvestment projects that 
were initiated before October 1, 1995.
    (c) Notice Concerning Projects To Be Carried Out.--Of the 
amounts made available for the defense dual use technology 
initiative under subsection (a)--
            (1) $145,000,000 shall be available for obligation 
        only after the date on which the Secretary of Defense 
        notifies the congressional defense committees regarding 
        the defense reinvestment projects to be funded using 
        such funds; and
            (2) the remaining $50,000,000 shall be available 
        for obligation only after the date on which the 
        Secretary of Defense certifies to the congressional 
        defense committees that the defense reinvestment 
        projects to be funded using such funds have been 
        determined by the Joint Requirements Oversight Council 
        to be of significant military priority.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

    (a) Allocation of Funds.--Of the amount authorized to be 
appropriated pursuant to the authorization in section 201(3), 
$50,000,000 shall be available for a competitive reusable 
rocket technology program.
    (b) Limitation.--Funds made available pursuant to 
subsection (a)(1) may be obligated only to the extent that the 
fiscal year 1996 current operating plan of the National 
Aeronautics and Space Administration allocates at least an 
equal amount for its Reusable Space Launch program.

SEC. 212. TACTICAL MANNED RECONNAISSANCE.

    (a) Limitation.--None of the amounts appropriated or 
otherwise made available pursuant to an authorization in this 
Act may be used by the Secretary of the Air Force to conduct 
research, development, test, or evaluation for a replacement 
aircraft, pod, or sensor payload for the tactical manned 
reconnaissance mission until the report required by subsection 
(b) is submitted to the congressional defense committees.
    (b) Report.--The Secretary of the Air Force shall submit to 
the congressional defense committees a report setting forth in 
detail information about the manner in which the funds 
authorized by section 201 of this Act and section 201 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2690) are planned to be used during 
fiscal year 1996 for research, development, test, and 
evaluation for the Air Force tactical manned reconnaissance 
mission. At a minimum, the report shall include the sources, by 
program element, of the funds and the purposes for which the 
funds are planned to be used.

SEC. 213. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

    (a) Allocation of Funds.--Of the amounts authorized to be 
appropriated pursuant to the authorizations in section 201, 
$200,156,000 shall be available for the Joint Advanced Strike 
Technology (JAST) program. Of that amount--
            (1) $83,795,000 shall be available for program 
        element 63800N in the budget of the Department of 
        Defense for fiscal year 1996;
            (2) $85,686,000 shall be available for program 
        element 63800F in such budget; and
            (3) $30,675,000 shall be available for program 
        element 63800E in such budget.
    (b) Additional Allocation.--Of the amounts made available 
under paragraphs (1), (2), and (3) of subsection (a)--
            (1) $25,000,000 shall be available from the amount 
        authorized to be appropriated pursuant to the 
        authorization in section 201(2) for the conduct, during 
        fiscal year 1996, of a 6-month program definition phase 
        for the A/F117X, an F-117 fighter aircraft modified for 
        use by the Navy as a long-range, medium attack 
        aircraft; and
            (2) $7,000,000 shall be available to provide for 
        competitive engine concepts.
    (c) Limitation.--Not more than 75 percent of the amount 
appropriated for the Joint Advanced Strike Technology program 
pursuant to the authorizations in section 201 may be obligated 
until a period of 30 days has expired after the report required 
by subsection (d) is submitted to the congressional defense 
committees.
    (d) Report.--The Secretary of Defense shall submit to the 
congressional defense committees a report, in unclassified and 
classified forms, not later than March 1, 1996, that sets forth 
in detail the following information for the period 1997 through 
2005:
            (1) The total joint requirement, assuming the 
        capability to successfully conduct two nearly 
        simultaneous major regional contingencies, for the 
        following:
                    (A) Numbers of bombers, tactical combat 
                aircraft, and attack helicopters and the 
                characteristics required of those aircraft in 
                terms of capabilities, range, and low-
                observability.
                    (B) Surface- and air-launched standoff 
                precision guided munitions.
                    (C) Cruise missiles.
                    (D) Ground-based systems, such as the 
                Extended Range-Multiple Launch Rocket System 
                and the Army Tactical Missile System (ATACMS), 
                for joint warfighting capability.
            (2) The warning time assumptions for two nearly 
        simultaneous major regional contingencies, and the 
        effects on future tactical attack/fighter aircraft 
        requirements using other warning time assumptions.
            (3) The requirements that exist for the Joint 
        Advanced Strike Technology program that cannot be met 
        by existing aircraft or by those in development.

SEC. 214. DEVELOPMENT OF LASER PROGRAM.

    Of the amount authorized to be appropriated by section 
201(2), $9,000,000 shall be used for the development by the 
Naval High Energy Laser Office of a continuous wave, 
superconducting radio frequency free electron laser program.

SEC. 215. NAVY MINE COUNTERMEASURES PROGRAM.

    Section 216(a) of the National Defense Authorization Act 
for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
1317) is amended--
            (1) by striking out ``Director, Defense Research 
        and Engineering'' and inserting in lieu thereof ``Under 
        Secretary of Defense for Acquisition and Technology''; 
        and
            (2) by striking out ``fiscal years 1995 through 
        1999'' and inserting in lieu thereof ``fiscal years 
        1996 through 1999''.

SEC. 216. SPACE-BASED INFRARED SYSTEM.

    (a) Program Baseline.--The Secretary of Defense shall 
establish a program baseline for the Space-Based Infrared 
System. Such baseline shall--
            (1) include--
                    (A) program cost and an estimate of the 
                funds required for development and acquisition 
                activities for each fiscal year in which such 
                activities are planned to be carried out;
                    (B) a comprehensive schedule with program 
                milestones and exit criteria; and
                    (C) optimized performance parameters for 
                each segment of an integrated space-based 
                infrared system;
            (2) be structured to achieve initial operational 
        capability of the low earth orbit space segment (the 
        Space and Missile Tracking System) in fiscal year 2003, 
        with a first launch of Block I satellites in fiscal 
        year 2002;
            (3) ensure integration of the Space and Missile 
        Tracking System into the architecture of the Space-
        Based Infrared System; and
            (4) ensure that the performance parameters of all 
        space segment components are selected so as to optimize 
        the performance of the Space-Based Infrared System 
        while minimizing unnecessary redundancy and cost.
    (b) Report on Program Baseline.--Not later than 60 days 
after the date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense committees a 
report, in classified and unclassified forms as necessary, on 
the program baseline established under subsection (a).
    (c) Establishment of Program Elements.--In the budget 
justification materials submitted to Congress in support of the 
Department of Defense budget for any fiscal year after fiscal 
year 1996 (as submitted in the budget of the President under 
section 1105(a) of title 31, United States Code), the amount 
requested for the Space-Based Infrared System shall be set 
forth in accordance with the following program elements:
            (1) Space Segment High.
            (2) Space Segment Low (Space and Missile Tracking 
        System).
            (3) Ground Segment.
    (d) Funding for Fiscal Year 1996.--Of the amounts 
authorized to be appropriated pursuant to section 201(3) for 
fiscal year 1996, or otherwise made available to the Department 
of Defense for fiscal year 1996, the following amounts shall be 
available for the Space-Based Infrared System:
            (1) $265,744,000 for demonstration and validation, 
        of which $249,824,000 shall be available for the Space 
        and Missile Tracking System.
            (2) $162,219,000 for engineering and manufacturing 
        development, of which $9,400,000 shall be available for 
        the Miniature Sensor Technology Integration program.

SEC. 217. DEFENSE NUCLEAR AGENCY PROGRAMS.

    (a) Agency Funding.--Of the amounts authorized to be 
appropriated to the Department of Defense in section 201, 
$241,703,000 shall be available for the Defense Nuclear Agency.
    (b) Tunnel Characterization and Neutralization Program.--Of 
the amount made available under subsection (a), $3,000,000 
shall be available for a tunnel characterization and 
neutralization program to be managed by the Defense Nuclear 
Agency as part of the counterproliferation activities of the 
Department of Defense.
    (c) Long-Term Radiation Tolerant Microelectronics 
Program.--(1) Of the amount made available under subsection 
(a), $6,000,000 shall be available for the establishment of a 
long-term radiation tolerant microelectronics program to be 
managed by the Defense Nuclear Agency for the purposes of--
            (A) providing for the development of affordable and 
        effective hardening technologies and for incorporation 
        of such technologies into systems;
            (B) sustaining the supporting industrial base; and
            (C) ensuring that a use of a nuclear weapon in 
        regional threat scenarios does not interrupt or defeat 
        the continued operability of systems of the Armed 
        Forces exposed to the combined effects of radiation 
        emitted by the weapon.
    (2) Not later than 120 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress 
a report on how the long-term radiation tolerant 
microelectronics program is to be conducted and funded in the 
fiscal years after fiscal year 1996 that are covered by the 
future-years defense program submitted to Congress in 1995.
    (d) Thermionics Program.--Of the amount made available 
under subsection (a), $10,000,000 shall be available for the 
thermionics program, to be managed by the Defense Nuclear 
Agency.
    (e) Electrothermal Gun Technology Program.--Of the amount 
made available under subsection (a), $4,000,000 shall be 
available for the electrothermal gun technology program of the 
Defense Nuclear Agency.
    (f) Counterterror Explosives Research Program.--Of the 
amount made available under subsection (a), $4,000,000 shall be 
available for the counterterror explosives research program of 
the Defense Nuclear Agency.
    (g) Transfer of Unobligated Balance.--The Secretary of 
Defense shall transfer to the Defense Nuclear Agency, to be 
available for the thermionics program, an amount not to exceed 
$12,000,000 from the unobligated balance of funds authorized 
and appropriated for research, development, test, and 
evaluation for fiscal year 1995 for the Air Force for the 
Advanced Weapons Program.

SEC. 218. COUNTERPROLIFERATION SUPPORT PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated to 
the Department of Defense under section 201(4), $138,237,000 
shall be available for the Counterproliferation Support 
Program, of which $30,000,000 shall be available for a tactical 
antisatellite technologies program.
    (b) Additional Authority To Transfer Authorizations.--(1) 
In addition to the transfer authority provided in section 1001, 
upon determination by the Secretary of Defense that such action 
is necessary in the national interest, the Secretary may 
transfer amounts of authorizations made available to the 
Department of Defense in this division for fiscal year 1996 to 
counterproliferation programs, projects, and activities 
identified as areas for progress by the Counterproliferation 
Program Review Committee established by section 1605 of the 
National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103-160; 107 Stat. 1845). Amounts of authorizations so 
transferred shall be merged with and be available for the same 
purposes as the authorization to which transferred.
    (2) The total amount of authorizations transferred under 
the authority of this subsection may not exceed $50,000,000.
    (3) The authority provided by this subsection to transfer 
authorizations--
            (A) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (B) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (4) A transfer made from one account to another under the 
authority of this subsection shall be deemed to increase the 
amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    (5) The Secretary of Defense shall promptly notify Congress 
of transfers made under the authority of this subsection.

SEC. 219. NONLETHAL WEAPONS STUDY.

    (a) Findings.--Congress finds the following:
            (1) The role of the United States military in 
        operations other than war has increased.
            (2) Weapons and instruments that are nonlethal in 
        application yet immobilizing could have widespread 
        operational utility and application.
            (3) The use of nonlethal weapons in operations 
        other than war poses a number of important doctrine, 
        legal, policy, and operations questions which should be 
        addressed in a comprehensive and coordinated manner.
            (4) The development of nonlethal technologies 
        continues to spread across military and agency budgets.
            (5) The Department of Defense should provide 
        improved budgetary focus and management direction to 
        the nonlethal weapons program.
    (b) Responsibility for Development of Nonlethal Weapons 
Technology.--Not later than February 15, 1996, the Secretary of 
Defense shall assign centralized responsibility for development 
(and any other functional responsibility the Secretary 
considers appropriate) of nonlethal weapons technology to an 
existing office within the Office of the Secretary of Defense 
or to a military service as the executive agent.
    (c) Report.--Not later than February 15, 1996, the 
Secretary of Defense shall submit to Congress a report setting 
forth the following:
            (1) The name of the office or military service 
        assigned responsibility for the nonlethal weapons 
        program by the Secretary of Defense pursuant to 
        subsection (b) and a discussion of the rationale for 
        such assignment.
            (2) The degree to which nonlethal weapons are 
        required by more than one of the armed forces.
            (3) The time frame for the development and 
        deployment of such weapons.
            (4) The appropriate role of the military 
        departments and defense agencies in the development of 
        such weapons.
            (5) The military doctrine, legal, policy, and 
        operational issues that must be addressed by the 
        Department of Defense before such weapons achieve 
        operational capability.
    (d) Authorization.--Of the amount authorized to be 
appropriated under section 201(4), $37,200,000 shall be 
available for nonlethal weapons programs and nonlethal 
technologies programs.
    (e) Definition.--For purposes of this section, the term 
``nonlethal weapon'' means a weapon or instrument the effect of 
which on human targets is less than fatal.

SEC. 220. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS AND 
                    UNIVERSITY-AFFILIATED RESEARCH CENTERS.

    (a) Centers Covered.--Funds appropriated or otherwise made 
available for the Department of Defense for fiscal year 1996 
pursuant to an authorization of appropriations in section 201 
may be obligated to procure work from a federally funded 
research and development center (in this section referred to as 
an ``FFRDC'') or a university-affiliated research center (in 
this section referred to as a ``UARC'') only in the case of a 
center named in the report required by subsection (b) and, in 
the case of such a center, only in an amount not in excess of 
the amount of the proposed funding level set forth for that 
center in such report.
    (b) Report on Allocations for Centers.--(1) Not later than 
30 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report containing--
            (A) the name of each FFRDC and UARC from which work 
        is proposed to be procured for the Department of 
        Defense for fiscal year 1996; and
            (B) for each such center, the proposed funding 
        level and the estimated personnel level for fiscal year 
        1996.
    (2) The total of the proposed funding levels set forth in 
the report for all FFRDCs and UARCs may not exceed the amount 
set forth in subsection (d).
    (c) Limitation Pending Submission of Report.--Not more than 
15 percent of the funds appropriated or otherwise made 
available for the Department of Defense for fiscal year 1996 
pursuant to an authorization of appropriations in section 201 
for FFRDCs and UARCs may be obligated to procure work from an 
FFRDC or UARC until the Secretary of Defense submits the report 
required by subsection (b).
    (d) Funding.--Of the amounts authorized to be appropriated 
by section 201, not more than a total of $1,668,850,000 may be 
obligated to procure services from the FFRDCs and UARCs named 
in the report required by subsection (b).
    (e) Authority To Waive Funding Limitation.--The Secretary 
of Defense may waive the limitation regarding the maximum 
funding amount that applies under subsection (a) to an FFRDC or 
UARC. Whenever the Secretary proposes to make such a waiver, 
the Secretary shall submit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives notice of the proposed waiver and the 
reasons for the waiver. The waiver may then be made only after 
the end of the 60-day period that begins on the date on which 
the notice is submitted to those committees, unless the 
Secretary determines that it is essential to the national 
security that funds be obligated for work at that center in 
excess of that limitation before the end of such period and 
notifies those committees of that determination and the reasons 
for the determination.
    (f) Five-Year Plan.--(1) The Secretary of Defense, in 
consultation with the Secretaries of the military departments, 
shall develop a five-year plan to reduce and consolidate the 
activities performed by FFRDCs and UARCs and establish a 
framework for the future workload of such centers.
    (2) The plan shall--
            (A) set forth the manner in which the Secretary of 
        Defense could achieve by October 1, 2000, 
        implementation by FFRDCs and UARCs of only those core 
        activities, as defined by the Secretary, that require 
        the unique capabilities and arrangements afforded by 
        such centers; and
            (B) include an assessment of the number of 
        personnel needed in each FFRDC and UARC during each 
        year over the five years covered by the plan.
    (3) Not later than February 1, 1996, the Secretary of 
Defense shall submit to the congressional defense committees a 
report on the plan required by this subsection.

SEC. 221. JOINT SEISMIC PROGRAM AND GLOBAL SEISMIC NETWORK.

    Of the amount authorized to be appropriated under section 
201(3), $9,500,000 shall be available for fiscal year 1996 (in 
program element 61101F in the budget of the Department of 
Defense for fiscal year 1996) for continuation of the Joint 
Seismic Program and Global Seismic Network.

SEC. 222. HYDRA-70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

    (a) Funding Authorization.--Of the amount authorized to be 
appropriated under section 201(1) for Other Missile Product 
Improvement Programs, $10,000,000 is authorized to be 
appropriated for a Hydra-70 rocket product improvement program 
and to be made available under such program for full 
qualification and operational platform certification of a 
Hydra-70 rocket described in subsection (b) for use on the 
Apache attack helicopter.
    (b) Hydra-70 Rocket Covered.--The Hydra-70 rocket referred 
to in subsection (a) is any Hydra-70 rocket that has as its 
propulsion component a 2.75-inch rocket motor that is a 
nondevelopmental item and uses a composite propellant.
    (c) Competition Required.--The Secretary of the Army shall 
conduct the product improvement program referred to in 
subsection (a) with full and open competition.
    (d) Submission of Technical Data Package Required.--Upon 
the full qualification and operational platform certification 
of a Hydra-70 rocket as described in subsection (a), the 
contractor providing the rocket so qualified and certified 
shall submit the technical data package for the rocket to the 
Secretary of the Army. The Secretary shall use the technical 
data package in competitions for contracts for the procurement 
of Hydra-70 rockets described in subsection (b) for the Army.
    (e) Definitions.--For purposes of this section, the terms 
``full and open competition'' and ``nondevelopmental item'' 
have the meanings given such terms in section 4 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 403).

SEC. 223. LIMITATION ON OBLIGATION OF FUNDS UNTIL RECEIPT OF ELECTRONIC 
                    COMBAT CONSOLIDATION MASTER PLAN.

    (a) Limitation.--Not more than 75 percent of the amounts 
appropriated or otherwise made available pursuant to the 
authorization of appropriations in section 201 for test and 
evaluation program elements 65896A, 65864N, 65807F, and 65804D 
in the budget of the Department of Defense for fiscal year 1996 
may be obligated until 14 days after the date on which the 
congressional defense committees receive the plan specified in 
subsection (b).
    (b) Plan.--The plan referred to in subsection (a) is the 
master plan for electronic combat consolidation described under 
Defense-Wide Programs under Research, Development, Test, and 
Evaluation in the Report of the Committee on Armed Services of 
the House of Representatives on H.R. 4301 (House Report 103-
499), dated May 10, 1994.

SEC. 224. REPORT ON REDUCTIONS IN RESEARCH, DEVELOPMENT, TEST, AND 
                    EVALUATION.

    (a) Report Requirement.--Not later than March 15, 1996, the 
Under Secretary of Defense (Comptroller) shall submit to the 
congressional defense committees a report that sets forth in 
detail the allocation of reductions for research, development, 
test, and evaluation described in subsection (b).
    (b) Description of Reductions.--The reductions for 
research, development, test, and evaluation covered by 
subsection (a) are the following Army, Navy, Air Force, and 
Defense-wide reductions, as required by the Department of 
Defense Appropriations Act, 1996:
            (1) General reductions.
            (2) Reductions to reflect savings from revised 
        economic assumptions.
            (3) Reductions to reflect the funding ceiling for 
        defense federally funded research and development 
        centers.
            (4) Reductions for savings through improved 
        management of contractor automatic data processing 
        costs charged through indirect rates on Department of 
        Defense acquisition contracts.

SEC. 225. ADVANCED FIELD ARTILLERY SYSTEM (CRUSADER).

    (a) Authority To Use Funds for Alternative Propellant 
Technologies.--During fiscal year 1996, the Secretary of the 
Army may use funds appropriated for the liquid propellant 
portion of the Advanced Field Artillery System (Crusader) 
program for fiscal year 1996 for alternative propellant 
technologies and integration of those technologies into the 
design of the Crusader if--
            (1) the Secretary determines that the technical 
        risk associated with liquid propellant will increase 
        costs and delay the initial operational capability of 
        the Crusader; and
            (2) the Secretary notifies the congressional 
        defense committees of the proposed use of the funds and 
        the reasons for the proposed use of the funds.
    (b) Limitation.--The Secretary of the Army may not spend 
funds for the liquid propellant portion of the Crusader program 
after August 15, 1996, unless--
            (1) the report required by subsection (c) has been 
        submitted by that date; and
            (2) such report includes documentation of 
        significant progress, as determined by the Secretary, 
        toward meeting the objectives for the liquid propellant 
        portion of the program, as set forth in the baseline 
        description for the Crusader program and approved by 
        the Office of the Secretary of Defense on January 4, 
        1995.
    (c) Report Required.--Not later than August 1, 1996, the 
Secretary of the Army shall submit to the congressional defense 
committees a report containing documentation of the progress 
being made in meeting the objectives set forth in the baseline 
description for the Crusader program and approved by the Office 
of the Secretary of Defense on January 4, 1995. The report 
shall specifically address the progress being made toward 
meeting the following objectives:
            (1) Establishment of breech and ignition design 
        criteria for rate of fire for the cannon of the 
        Crusader.
            (2) Selection of a satisfactory ignition concept 
        for the next prototype of the cannon.
            (3) Selection, on the basis of modeling and 
        simulation, of design concepts to prevent chamber 
        piston reversals, and validation of the selected 
        concepts by gun and mock chamber firings.
            (4) Achievement of an understanding of the 
        chemistry and physics of propellant burn resulting from 
        the firing of liquid propellant into any target zone, 
        and achievement, on the basis of modeling and 
        simulation, of an ignition process that is predictable.
            (5) Completion of an analysis of the management of 
        heat dissipation for the full range of performance 
        requirements for the cannon, completion of concept 
        designs supported by that analysis, and proposal of 
        such concept designs for engineering.
            (6) Development, for integration into the next 
        prototype of the cannon, of engineering designs to 
        control pressure oscillations in the chamber of the 
        cannon during firing.
            (7) Completion of an assessment of the sensitivity 
        of liquid propellant to contamination by various 
        materials to which it may be exposed throughout the 
        handling and operation of the cannon, and documentation 
        of predictable reactions of contaminated or sensitized 
        liquid propellant.
    (d) Additional Matters To Be Covered by Report.--The report 
required by subsection (c) also shall contain the following:
            (1) An assertion that all the known hazards 
        associated with liquid propellant have been identified 
        and are controllable to acceptable levels.
            (2) An assessment of the technology for each 
        component of the Crusader (the cannon, vehicle, and 
        crew module), including, for each performance goal of 
        the Crusader program (including the goal for total 
        system weight), information about the maturity of the 
        technology to achieve that goal, the maturity of the 
        design of the technology, and the manner in which the 
        design has been proven (for example, through 
        simulation, bench testing, or weapon firing).
            (3) An assessment of the cost of continued 
        development of the Crusader after August 1, 1996, and 
        the cost of each unit of the Crusader in the year the 
        Crusader will be completed.

SEC. 226. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, ROCKETS, AND 
                    EXPLOSIVES.

    Of the amount appropriated pursuant to the authorization in 
section 201 for explosives demilitarization technology, 
$15,000,000 shall be available to establish an integrated 
program for the development and demonstration of conventional 
munitions and explosives demilitarization technologies that 
comply with applicable environmental laws for the 
demilitarization and disposal of unserviceable, obsolete, or 
nontreaty compliant munitions, rocket motors, and explosives.

SEC. 227. DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.

    (a) Limitation.--Not more than three percent of the total 
amount appropriated for research and development under the 
Defense Airborne Reconnaissance program pursuant to the 
authorizations of appropriations in section 201 may be 
obligated for systems engineering and technical assistance 
(SETA) contracts until--
            (1) funds are obligated (out of such appropriated 
        funds) for--
                    (A) the upgrade of U-2 aircraft senior year 
                electro-optical reconnaissance sensors to the 
                newest configuration; and
                    (B) the upgrade of the U-2 SIGINT system; 
                and
            (2) the Under Secretary of Defense for Acquisition 
        and Technology submits the report required under 
        subsection (b).
    (b) Report on U-2-Related Upgrades.--(1) Not later than 
April 1, 1996, the Under Secretary of Defense for Acquisition 
and Technology shall transmit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report on obligations of 
funds for upgrades relating to airborne reconnaissance by U-2 
aircraft.
    (2) The report shall set forth the specific purposes under 
the general purposes described in subparagraphs (A) and (B) of 
subsection (a)(1) for which funds have been obligated (as of 
the date of the report) and the amounts that have been 
obligated (as of such date) for those specific purposes.

           Subtitle C--Ballistic Missile Defense Act of 1995

SEC. 231. SHORT TITLE.

    This subtitle may be cited as the ``Ballistic Missile 
Defense Act of 1995''.

SEC. 232. FINDINGS.

    Congress makes the following findings:
            (1) The emerging threat that is posed to the 
        national security interests of the United States by the 
        proliferation of ballistic missiles is significant and 
        growing, both in terms of numbers of missiles and in 
        terms of the technical capabilities of those missiles.
            (2) The deployment of ballistic missile defenses is 
        a necessary, but not sufficient, element of a broader 
        strategy to discourage both the proliferation of 
        weapons of mass destruction and the proliferation of 
        the means of their delivery and to defend against the 
        consequences of such proliferation.
            (3) The deployment of effective Theater Missile 
        Defense systems can deter potential adversaries of the 
        United States from escalating a conflict by threatening 
        or attacking United States forces or the forces or 
        territory of coalition partners or allies of the United 
        States with ballistic missiles armed with weapons of 
        mass destruction to offset the operational and 
        technical advantages of the United States and its 
        coalition partners and allies.
            (4) United States intelligence officials have 
        provided intelligence estimates to congressional 
        committees that (A) the trend in missile proliferation 
        is toward longer range and more sophisticated ballistic 
        missiles, (B) North Korea may deploy an 
        intercontinental ballistic missile capable of reaching 
        Alaska or beyond within five years, and (C) although a 
        new, indigenously developed ballastic missile threat to 
        the continental United States is not foreseen within 
        the next ten years, determined countries can acquire 
        intercontinental ballistic missiles in the near future 
        and with little warning by means other than indigenous 
        development.
            (5) The development and deployment by the United 
        States and its allies of effective defenses against 
        ballistic missiles of all ranges will reduce the 
        incentives for countries to acquire such missiles or to 
        augment existing missile capabilities.
            (6) The concept of mutual assured destruction 
        (based upon an offense-only form of deterrence), which 
        is the major philosophical rationale underlying the ABM 
        Treaty, is now questionable as a basis for stability in 
        a multipolar world in which the United States and the 
        states of the former Soviet Union are seeking to 
        normalize relations and eliminate Cold War attitudes 
        and arrangements.
            (7) The development and deployment of a National 
        Missile Defense system against the threat of limited 
        ballistic missile attacks--
                    (A) would strengthen deterrence at the 
                levels of forces agreed to by the United States 
                and Russia under the Strategic Arms Reduction 
                Talks Treaty (START-I); and
                    (B) would further strengthen deterrence if 
                reductions below the levels permitted under 
                START-I should be agreed to and implemented in 
                the future.
            (8) The distinction made during the Cold War, based 
        upon the technology of the time, between strategic 
        ballistic missiles and nonstrategic ballistic missiles, 
        which resulted in the distinction made in the ABM 
        Treaty between strategic defense and nonstrategic 
        defense, has become obsolete because of technological 
        advancement (including the development by North Korea 
        of long-range Taepo-Dong I and Taepo-Dong II missiles) 
        and, therefore, that distinction in the ABM Treaty 
        should be reviewed.

SEC. 233. BALLISTIC MISSILE DEFENSE POLICY.

    It is the policy of the United States--
            (1) to deploy affordable and operationally 
        effective theater missile defenses to protect forward-
        deployed and expeditionary elements of the Armed Forces 
        of the United States and to complement the missile 
        defense capabilities of forces of coalition partners 
        and of allies of the United States; and
            (2) to seek a cooperative, negotiated transition to 
        a regime that does not feature an offense-only form of 
        deterrence as the basis for strategic stability.

SEC. 234. THEATER MISSILE DEFENSE ARCHITECTURE.

    (a) Establishment of Core Program.--To implement the policy 
established in paragraph (1) of section 233, the Secretary of 
Defense shall restructure the core theater missile defense 
program to consist of the following systems, to be carried out 
so as to achieve the specified capabilities:
            (1) The Patriot PAC-3 system, with a first unit 
        equipped (FUE) during fiscal year 1998.
            (2) The Navy Lower Tier (Area) system, with a user 
        operational evaluation system (UOES) capability during 
        fiscal year 1997 and an initial operational capability 
        (IOC) during fiscal year 1999.
            (3) The Theater High-Altitude Area Defense (THAAD) 
        system, with a user operational evaluation system 
        (UOES) capability not later than fiscal year 1998 and a 
        first unit equipped (FUE) not later than fiscal year 
        2000.
            (4) The Navy Upper Tier (Theater Wide) system, with 
        a user operational evaluation system (UOES) capability 
        during fiscal year 1999 and an initial operational 
        capability (IOC) during fiscal year 2001.
    (b) Use of Streamlined Acquisition Procedures.--The 
Secretary of Defense shall prescribe and use streamlined 
acquisition policies and procedures to reduce the cost and 
increase the efficiency of developing and deploying the theater 
missile defense systems specified in subsection (a).
    (c) Interoperability and Support of Core Systems.--To 
maximize effectiveness and flexibility of the systems 
comprising the core theater missile defense program, the 
Secretary of Defense shall ensure that those systems are 
integrated and complementary and are fully capable of 
exploiting external sensor and battle management support from 
systems such as--
            (A) the Cooperative Engagement Capability (CEC) 
        system of the Navy;
            (B) airborne sensors; and
            (C) space-based sensors (including, in particular, 
        the Space and Missile Tracking System).
    (d) Follow-on Systems.--(1) The Secretary of Defense shall 
prepare an affordable development plan for theater missile 
defense systems to be developed as follow-on systems to the 
core systems specified in subsection (a). The Secretary shall 
make the selection of a system for inclusion in the plan based 
on the capability of the system to satisfy military 
requirements not met by the systems in the core program and on 
the capability of the system to use prior investments in 
technologies, infrastructure, and battle-management 
capabilities that are incorporated in, or associated with, the 
systems in the core program.
    (2) The Secretary may not proceed with the development of a 
follow-on theater missile defense system beyond the 
Demonstration/Validation stage of development unless the 
Secretary designates that system as a part of the core program 
under this section and submits to the congressional defense 
committees notice of that designation. The Secretary shall 
include with any such notification a report describing--
            (A) the requirements for the system and the 
        specific threats that such system is designed to 
        counter;
            (B) how the system will relate to, support, and 
        build upon existing core systems;
            (C) the planned acquisition strategy for the 
        system; and
            (D) a preliminary estimate of total program cost 
        for that system and the effect of development and 
        acquisition of such system on Department of Defense 
        budget projections.
    (e) Program Accountability Report.--(1) As part of the 
annual report of the Ballistic Missile Defense Organization 
required by section 224 of Public Law 101-189 (10 U.S.C. 2431 
note), the Secretary of Defense shall describe the technical 
milestones, the schedule, and the cost of each phase of 
development and acquisition (together with total estimated 
program costs) for each core and follow-on theater missile 
defense program.
    (2) As part of such report, the Secretary shall describe, 
with respect to each program covered in the report, any 
variance in the technical milestones, program schedule 
milestones, and costs for the program compared with the 
information relating to that program in the report submitted in 
the previous year and in the report submitted in the first year 
in which that program was covered.
    (f) Reports on TMD System Limitations Under ABM Treaty.--
(1) Whenever, after January 1, 1993, the Secretary of Defense 
issues a certification with respect to the compliance of a 
particular Theater Missile Defense system with the ABM Treaty, 
the Secretary shall transmit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives a copy of such certification. Such 
transmittal shall be made not later than 30 days after the date 
on which such certification is issued, except that in the case 
of a certification issued before the date of the enactment of 
this Act, such transmittal shall be made not later than 60 days 
after the date of the enactment of this Act.
    (2) If a certification under paragraph (1) is based on 
application of a policy concerning United States compliance 
with the ABM Treaty that differs from the policy described in 
section 235(b)(1), the Secretary shall include with the 
transmittal under that paragraph a report providing a detailed 
assessment of--
            (A) how the policy applied differs from the policy 
        described in section 235(b)(1); and
            (B) how the application of that policy (rather than 
        the policy described in section 235(b)(1)) will affect 
        the cost, schedule, and performance of that system.

SEC. 235. PROHIBITION ON USE OF FUNDS TO IMPLEMENT AN INTERNATIONAL 
                    AGREEMENT CONCERNING THEATER MISSILE DEFENSE 
                    SYSTEMS.

    (a) Findings.--(1) Congress hereby reaffirms--
            (A) the finding in section 234(a)(7) of the 
        National Defense Authorization Act for Fiscal Year 1994 
        (Public Law 103-160; 107 Stat. 1595; 10 U.S.C. 2431 
        note) that the ABM Treaty was not intended to, and does 
        not, apply to or limit research, development, testing, 
        or deployment of missile defense systems, system 
        upgrades, or system components that are designed to 
        counter modern theater ballistic missiles, regardless 
        of the capabilities of such missiles, unless those 
        systems, system upgrades, or system components are 
        tested against or have demonstrated capabilities to 
        counter modern strategic ballistic missiles; and
            (B) the statement in section 232 of the National 
        Defense Authorization Act for Fiscal Year 1995 (Public 
        Law 103-337; 108 Stat. 2700) that the United States 
        shall not be bound by any international agreement 
        entered into by the President that would substantively 
        modify the ABM Treaty unless the agreement is entered 
        into pursuant to the treaty making power of the 
        President under the Constitution.
    (2) Congress also finds that the demarcation standard 
described in subsection (b)(1) for compliance of a missile 
defense system, system upgrade, or system component with the 
ABM Treaty is based upon current technology.
    (b) Sense of Congress Concerning Compliance Policy.--It is 
the sense of Congress that--
            (1) unless a missile defense system, system 
        upgrade, or system component (including one that 
        exploits data from space-based or other external 
        sensors) is flight tested in an ABM-qualifying flight 
        test (as defined in subsection (e)), that system, 
        system upgrade, or system component has not, for 
        purposes of the ABM Treaty, been tested in an ABM mode 
        nor been given capabilities to counter strategic 
        ballistic missiles and, therefore, is not subject to 
        any application, limitation, or obligation under the 
        ABM Treaty; and
            (2) any international agreement that would limit 
        the research, development, testing, or deployment of 
        missile defense systems, system upgrades, or system 
        components that are designed to counter modern theater 
        ballistic missiles in a manner that would be more 
        restrictive than the compliance criteria specified in 
        paragraph (1) should be entered into only pursuant to 
        the treaty making powers of the President under the 
        Constitution.
    (c) Prohibition on Funding.--Funds appropriated or 
otherwise made available to the Department of Defense for 
fiscal year 1996 may not be obligated or expended to implement 
an agreement, or any understanding with respect to 
interpretation of the ABM Treaty, between the United States and 
any of the independent states of the former Soviet Union 
entered into after January 1, 1995, that--
            (1) would establish a demarcation between theater 
        missile defense systems and anti-ballistic missile 
        systems for purposes of the ABM Treaty; or
            (2) would restrict the performance, operation, or 
        deployment of United States theater missile defense 
        systems.
    (d) Exceptions.--Subsection (c) does not apply--
            (1) to the extent provided by law in an Act enacted 
        after this Act;
            (2) to expenditures to implement that portion of 
        any such agreement or understanding that implements the 
        policy set forth in subsection (b)(1); or
            (3) to expenditures to implement any such agreement 
        or understanding that is approved as a treaty or by 
        law.
    (e) ABM-Qualifying Flight Test Defined.--For purposes of 
this section, an ABM-qualifying flight test is a flight test 
against a ballistic missile which, in that flight test, exceeds 
(1) a range of 3,500 kilometers, or (2) a velocity of 5 
kilometers per second.

SEC. 236. BALLISTIC MISSILE DEFENSE COOPERATION WITH ALLIES.

    It is in the interest of the United States to develop its 
own missile defense capabilities in a manner that will permit 
the United States to complement the missile defense 
capabilities developed and deployed by its allies and possible 
coalition partners. Therefore, the Congress urges the 
President--
            (1) to pursue high-level discussions with allies of 
        the United States and selected other states on the 
        means and methods by which the parties on a bilateral 
        basis can cooperate in the development, deployment, and 
        operation of ballistic missile defenses;
            (2) to take the initiative within the North 
        Atlantic Treaty Organization to develop consensus in 
        the Alliance for a timely deployment of effective 
        ballistic missile defenses by the Alliance; and
            (3) in the interim, to seek agreement with allies 
        of the United States and selected other states on steps 
        the parties should take, consistent with their national 
        interests, to reduce the risks posed by the threat of 
        limited ballistic missile attacks, such steps to 
        include--
                    (A) the sharing of early warning 
                information derived from sensors deployed by 
                the United States and other states;
                    (B) the exchange on a reciprocal basis of 
                technical data and technology to support both 
                joint development programs and the sale and 
                purchase of missile defense systems and 
                components; and
                    (C) operational level planning to exploit 
                current missile defense capabilities and to 
                help define future requirements.

SEC. 237. ABM TREATY DEFINED.

    For purposes of this subtitle, the term ``ABM Treaty'' 
means the Treaty Between the United States of America and the 
Union of Soviet Socialist Republics on the Limitation of Anti-
Ballistic Missile Systems, and signed at Moscow on May 26, 
1972, and includes the Protocols to that Treaty, signed at 
Moscow on July 3, 1974.

SEC. 238. REPEAL OF MISSILE DEFENSE ACT OF 1991.

    The Missile Defense Act of 1991 (10 U.S.C. 2431 note) is 
repealed.

         Subtitle D--Other Ballistic Missile Defense Provisions

SEC. 251. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

    (a) Elements Specified.--In the budget justification 
materials submitted to Congress in support of the Department of 
Defense budget for any fiscal year after fiscal year 1996 (as 
submitted with the budget of the President under section 
1105(a) of title 31, United States Code), the amount requested 
for activities of the Ballistic Missile Defense Organization 
shall be set forth in accordance with the following program 
elements:
            (1) The Patriot system.
            (2) The Navy Lower Tier (Area) system.
            (3) The Theater High-Altitude Area Defense (THAAD) 
        system.
            (4) The Navy Upper Tier (Theater Wide) system.
            (5) The Corps Surface-to-Air Missile (SAM) system.
            (6) Other Theater Missile Defense Activities.
            (7) National Missile Defense.
            (8) Follow-On and Support Technologies.
    (b) Treatment of Core Theater Missile Defense Programs.--
Amounts requested for core theater missile defense programs 
specified in section 234 shall be specified in individual, 
dedicated program elements, and amounts appropriated for such 
programs shall be available only for activities covered by 
those program elements.
    (c) BM/C3I Programs.--Amounts requested for programs, 
projects, and activities involving battle management, command, 
control, communications, and intelligence (BM/C3I) shall 
be included in the ``Other Theater Missile Defense Activities'' 
program element or the ``National Missile Defense'' program 
element, as determined on the basis of the primary objectives 
involved.
    (d) Management and Support.--Each program element shall 
include requests for the amounts necessary for the management 
and support of the programs, projects, and activities contained 
in that program element.

SEC. 252. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.

    Subsection (a) of section 237 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
Stat. 1600) is amended to read as follows:
    ``(a) Testing of Theater Missile Defense Interceptors.--(1) 
The Secretary of Defense may not approve a theater missile 
defense interceptor program proceeding beyond thelow-rate 
initial production acquisition stage until the Secretary certifies to 
the congressional defense committees that such program has successfully 
completed initial operational test and evaluation.
    ``(2) In order to be certified under paragraph (1) as 
having been successfully completed, the initial operational 
test and evaluation conducted with respect to an interceptors 
program must have included flight tests--
            ``(A) that were conducted with multiple 
        interceptors and multiple targets in the presence of 
        realistic countermeasures; and
            ``(B) the results of which demonstrate the 
        achievement by the interceptors of the baseline 
        performance thresholds.
    ``(3) For purposes of this subsection, the baseline 
performance thresholds with respect to a program are the 
weapons systems performance thresholds specified in the 
baseline description for the system established (pursuant to 
section 2435(a)(1) of title 10, United States Code) before the 
program entered the engineering and manufacturing development 
stage.
    ``(4) The number of flight tests described in paragraph (2) 
that are required in order to make the certification under 
paragraph (1) shall be a number determined by the Secretary of 
Defense to be sufficient for the purposes of this section.
    ``(5) The Secretary may augment live-fire testing to 
demonstrate weapons system performance goals for purposes of 
the certification under paragraph (1) through the use of 
modeling and simulation that is validated by ground and flight 
testing.''.

SEC. 253. REPEAL OF MISSILE DEFENSE PROVISIONS.

    The following provisions of law are repealed:
            (1) Section 222 of the Department of Defense 
        Authorization Act, 1986 (Public Law 99-145; 99 Stat. 
        613; 10 U.S.C. 2431 note).
            (2) Section 225 of the Department of Defense 
        Authorization Act, 1986 (Public Law 99-145; 99 Stat. 
        614).
            (3) Section 226 of the National Defense 
        Authorization Act for Fiscal Years 1988 and 1989 
        (Public Law 100-180; 101 Stat. 1057; 10 U.S.C. 2431 
        note).
            (4) Section 8123 of the Department of Defense 
        Appropriations Act, 1989 (Public Law 100-463; 102 Stat. 
        2270-40).
            (5) Section 8133 of the Department of Defense 
        Appropriations Act, 1992 (Public Law 102-172; 105 Stat. 
        1211).
            (6) Section 234 of the National Defense 
        Authorization Act for Fiscal Year 1994 (Public Law 103-
        160; 107 Stat. 1595; 10 U.S.C. 2431 note).
            (7) Section 242 of the National Defense 
        Authorization Act for Fiscal Year 1994 (Public Law 103-
        160; 107 Stat. 1603; 10 U.S.C. 2431 note).
            (8) Section 235 of the National Defense 
        Authorization Act for Fiscal Year 1995 (Public Law 103-
        337; 108 Stat. 2701; 10 U.S.C. 221 note).
            (9) Section 2609 of title 10, United States Code.

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

SEC. 261. PRECISION-GUIDED MUNITIONS.

    (a) Analysis Required.--The Secretary of Defense shall 
perform an analysis of the full range of precision-guided 
munitions in production and in research, development, test, and 
evaluation in order to determine the following:
            (1) The numbers and types of precision-guided 
        munitions that are needed to provide complementary 
        capabilities against each target class.
            (2) The feasibility of carrying out joint 
        development and procurement of additional types of 
        munitions by more than one of the Armed Forces.
            (3) The feasibility of integrating a particular 
        precision-guided munition on multiple service 
        platforms.
            (4) The economy and effectiveness of continuing the 
        acquisition of--
                    (A) interim precision-guided munitions; or
                    (B) precision-guided munitions that, as a 
                result of being procured in decreasing numbers 
                to meet decreasing quantity requirements, have 
                increased in cost per unit by more than 50 
                percent over the cost per unit for such 
                munitions as of December 1, 1991.
    (b) Report.--(1) Not later than April 15, 1996, the 
Secretary shall submit to Congress a report on the findings and 
other results of the analysis.
    (2) The report shall include a detailed discussion of the 
process by which the Department of Defense--
            (A) approves the development of new precision-
        guided munitions;
            (B) avoids duplication and redundancy in the 
        precision-guided munitions programs of the Army, Navy, 
        Air Force, and Marine Corps;
            (C) ensures rationality in the relationship between 
        the funding plans for precision-guided munitions 
        modernization for fiscal years following fiscal year 
        1996 and the costs of such modernization for those 
        fiscal years; and
            (D) identifies by name and function each person 
        responsible for approving each new precision-guided 
        munition for initial low-rate production.
    (c) Funding Limitation.--Funds authorized to be 
appropriated by this Act may not be expended for research, 
development, test, and evaluation or procurement of interim 
precision-guided munitions after April 15, 1996, unless the 
Secretary of Defense has submitted the report under subsection 
(b).
    (d) Interim Precision-Guided Munition Defined.--For 
purposes of subsection (c), a precision-guided munition is an 
interim precision-guided munition if the munition is being 
procured in fiscal year 1996, but funding is not proposed for 
additional procurement of the munition in the fiscal years 
after fiscal year 1996 that are covered by the future years 
defense program submitted to Congress in 1995 under section 
221(a) of title 10, United States Code.

SEC. 262. REVIEW OF C4I BY NATIONAL RESEARCH COUNCIL.

    (a) Review by National Research Council.--Not later than 90 
days after the date of the enactment of this Act, the Secretary 
of Defense shall request the National Research Council of the 
National Academy of Sciences to conduct a comprehensive review 
of current and planned service and defense-wide programs for 
command, control, communications, computers, and intelligence 
(C4I) with a special focus on cross-service and inter-
service issues.
    (b) Matters To Be Assessed in Review.--The review shall 
address the following:
            (1) The match between the capabilities provided by 
        current service and defense-wide C4I programs and 
        the actual needs of users of these programs.
            (2) The interoperability of service and defense-
        wide C4I systems that are planned to be 
        operational in the future.
            (3) The need for an overall defense-wide 
        architecture for C4I.
            (4) Proposed strategies for ensuring that future 
        C4I acquisitions are compatible and interoperable 
        with an overall architecture.
            (5) Technological and administrative aspects of the 
        C4I modernization effort to determine the 
        soundness of the underlying plan and the extent to 
        which it is consistent with concepts for joint military 
        operations in the future.
    (c) Two-Year Period for Conducting Review.--The review 
shall be conducted over the two-year period beginning on the 
date on which the National Research Council and the Secretary 
of Defense enter into a contract or other agreement for the 
conduct of the review.
    (d) Reports.--(1) In the contract or other agreement for 
the conduct of the review, the Secretary of Defense shall 
provide that the National Research Council shall submit to the 
Department of Defense and Congress interim reports and progress 
updates on a regular basis as the review proceeds. A final 
report on the review shall set forth the findings, conclusions, 
and recommendations of the Council for defense-wide and service 
C4I programs and shall be submitted to the Committee on 
Armed Services of the Senate, the Committee on National 
Security of the House of Representatives, and the Secretary of 
Defense.
    (2) To the maximum degree possible, the final report shall 
be submitted in unclassified form with classified annexes as 
necessary.
    (e) Interagency Cooperation With Study.--All military 
departments, defense agencies, and other components of the 
Department of Defense shall cooperate fully with the National 
Research Council in its activities in carrying out the review 
under this section.
    (f) Expedited Processing of Security Clearances for 
Study.--For the purpose of facilitating the commencement of the 
study under this section, the Secretary of Defense shall 
expedite to the fullest degree possible the processing of 
security clearances that are necessary for the National 
Research Council to conduct the study.
    (g) Funding.--Of the amount authorized to be appropriated 
in section 201 for defense-wide activities, $900,000 shall be 
available for the study under this section.

SEC. 263. ANALYSIS OF CONSOLIDATION OF BASIC RESEARCH ACCOUNTS OF 
                    MILITARY DEPARTMENTS.

    (a) Analysis Required.--The Secretary of Defense shall 
conduct an analysis of the cost and effectiveness of 
consolidating the basic research accounts of the military 
departments. The analysis shall determine potential 
infrastructure savings and other benefits of co-locating and 
consolidating the management of basic research.
    (b) Deadline.--On or before March 1, 1996, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives a report on the analysis conducted under 
subsection (a).

SEC. 264. CHANGE IN REPORTING PERIOD FROM CALENDAR YEAR TO FISCAL YEAR 
                    FOR ANNUAL REPORT ON CERTAIN CONTRACTS TO COLLEGES 
                    AND UNIVERSITIES.

    Section 2361(c)(2) of title 10, United States Code, is 
amended--
            (1) by striking out ``calendar year'' and inserting 
        in lieu thereof ``fiscal year''; and
            (2) by striking out ``the year after the year'' and 
        inserting in lieu thereof ``the fiscal year after the 
        fiscal year''.

SEC. 265. AERONAUTICAL RESEARCH AND TEST CAPABILITIES ASSESSMENT.

    (a) Findings.--Congress finds the following:
            (1) It is in the Nation's long-term national 
        security interests for the United States to maintain 
        preeminence in the area of aeronautical research and 
        test capabilities.
            (2) Continued advances in aeronautical science and 
        engineering are critical to sustaining the strategic 
        and tactical air superiority of the United States and 
        coalition forces, as well as United States economic 
        security and international aerospace leadership.
            (3) It is in the national security and economic 
        interests of the United States and the budgetary 
        interests of the Department of Defense for the 
        department to encourage the establishment of active 
        partnerships between the department and other 
        Government agencies, academic institutions, and private 
        industry to develop, maintain, and enhance aeronautical 
        research and test capabilities.
    (b) Review.--The Secretary of Defense shall conduct a 
comprehensive review of the aeronautical research and test 
facilities and capabilities of the United States in order to 
assess the current condition of such facilities and 
capabilities.
    (c) Report.--(1) Not later than March 1, 1996, the 
Secretary of Defense shall submit to the congressional defense 
committees a report setting forth in detail the findings of the 
review required by subsection (b).
    (2) The report shall include the following:
            (A) The options for providing affordable, operable, 
        reliable, and responsive long-term aeronautical 
        research and test capabilities for military and 
        civilian purposes and for the organization and conduct 
        of such capabilities within the Department or through 
        shared operations with other Government agencies, 
        academic institutions, and private industry.
            (B) The projected costs of such options, including 
        costs of acquisition and technical and financial 
        arrangements (including the use of Government 
        facilities for reimbursable private use).
            (C) Recommendations on the most efficient and 
        economic means of developing, maintaining, and 
        continually modernizing aeronautical research and test 
        capabilities to meet current, planned, and prospective 
        military and civilian needs.

                       Subtitle F--Other Matters

SEC. 271. ADVANCED LITHOGRAPHY PROGRAM.

    Section 216 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2693) is 
amended--
            (1) in subsection (a), by striking out ``to help 
        achieve'' and all that follows through the end of the 
        subsection and inserting in lieu thereof ``to ensure 
        that lithographic processes being developed by United 
        States-owned companies or United States-incorporated 
        companies operating in the United States will lead to 
        superior performance electronics systems for the 
        Department of Defense.'';
            (2) in subsection (b), by adding at the end the 
        following new paragraph:
    ``(3) The Director of the Defense Advanced Research 
Projects Agency may set priorities and funding levels for 
various technologies being developed for the ALP and shall 
consider funding recommendations made by the Semiconductor 
Industry Association as being advisory in nature.'';
            (3) in subsection (c)--
                    (A) by inserting ``Defense'' before 
                ``Advanced''; and
                    (B) by striking out ``ARPA'' both places it 
                appears and inserting in lieu thereof 
                ``DARPA''; and
            (4) by adding at the end the following:
    ``(d) Definitions.--In this section:
            ``(1) The term `United States-owned company' means 
        a company the majority ownership or control of which is 
        held by citizens of the United States.
            ``(2) The term `United States-incorporated company' 
        means a company that the Secretary of Defense finds is 
        incorporated in the United States and has a parent 
        company that is incorporated in a country--
                    ``(A) that affords to United States-owned 
                companies opportunities, comparable to those 
                afforded to any other company, to participate 
                in any joint venture similar to those 
                authorized under section 28 of the National 
                Institute of Standards and Technology Act (15 
                U.S.C. 278n);
                    ``(B) that affords to United States-owned 
                companies local investment opportunities 
                comparable to those afforded to any other 
                company; and
                    ``(C) that affords adequate and effective 
                protection for the intellectual property rights 
                of United States-owned companies.''.

SEC. 272. ENHANCED FIBER OPTIC GUIDED MISSILE (EFOG-M) SYSTEM.

    (a) Limitations.--(1) The Secretary of the Army may not 
obligate more than $280,000,000 (based on fiscal year 1995 
constant dollars) to develop and deliver for test and 
evaluation by the Army the following items:
            (A) 44 enhanced fiber optic guided test missiles.
            (B) 256 fully operational enhanced fiber optic 
        guided missiles.
            (C) 12 fully operational fire units.
    (2) The Secretary of the Army may not spend funds for the 
enhanced fiber optic guided missile (EFOG-M) system after 
September 30, 1998, if the items described in paragraph (1) 
have not been delivered to the Army by that date and at a cost 
not greater than the amount set forth in paragraph (1).
    (3) The Secretary of the Army may not enter into an 
advanced development phase for the EFOG-M system unless--
            (A) an advanced concept technology demonstration of 
        the system has been successfully completed; and
            (B) the Secretary certifies to the congressional 
        defense committees that there is a requirement for the 
        EFOG-M system that is supported by a cost and 
        operational effectiveness analysis.
    (b) Government-Furnished Equipment.--The Secretary of the 
Army shall ensure that all Government-furnished equipment that 
the Army agrees to provide under the contract for the EFOG-M 
system is provided to the prime contractor in accordance with 
the terms of the contract.

SEC. 273. STATES ELIGIBLE FOR ASSISTANCE UNDER DEFENSE EXPERIMENTAL 
                    PROGRAM TO STIMULATE COMPETITIVE RESEARCH.

    Subparagraph (A) of section 257(d)(2) of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 108 Stat. 2705; 10 U.S.C. 2358 note) is amended to read as 
follows:
            ``(A) the average annual amount of all Department 
        of Defense obligations for science and engineering 
        research and development that were in effect with 
        institutions of higher education in the State for the 
        three fiscal years preceding the fiscal year for which 
        the designation is effective or for the last three 
        fiscal years for which statistics are available is less 
        than the amount determined by multiplying 60 percent 
        times the amount equal to \1/50\ of the total average 
        annual amount of all Department of Defense obligations 
        for science and engineering research and development 
        that were in effect with institutions of higher 
        education in the United States for such three preceding 
        or last fiscal years, as the case may be (to be 
        determined in consultation with the Secretary of 
        Defense);''.

SEC. 274. CRUISE MISSILE DEFENSE INITIATIVE.

    (a) In General.--The Secretary of Defense shall undertake 
an initiative to coordinate and strengthen the cruise missile 
defense programs of the Department of Defense to ensure that 
the United States develops and deploys affordable and 
operationally effective defenses against existing and future 
cruise missile threats to United States military forces and 
operations.
    (b) Coordination With Ballistic Missile Defense Efforts.--
In carrying out subsection (a), the Secretary shall ensure 
that, to the extent practicable, the cruise missile defense 
programs of the Department of Defense and the ballistic missile 
defense programs of the Department of Defense are coordinated 
with each other and that those programs are mutually 
supporting.
    (c) Defenses Against Existing and Near-Term Cruise Missile 
Threats.--As part of the initiative under subsection (a), the 
Secretary shall ensure that appropriate existing and planned 
air defense systems are upgraded to provide an affordable and 
operationally effective defense against existing and near-term 
cruise missile threats to United States military forces and 
operations.
    (d) Defenses Against Advanced Cruise Missiles.--As part of 
the initiative under subsection (a), the Secretary shall 
undertake a well-coordinated development program to support the 
future deployment of cruise missile defense systems that are 
affordable and operationally effective against advanced cruise 
missiles, including cruise missiles with low observable 
features.
    (e) Implementation Plan.--Not later than the date on which 
the President submits the budget for fiscal year 1997 under 
section 1105 of title 31, United States Code, the Secretary of 
Defense shall submit to the congressional defense committees a 
detailed plan, in unclassified and classified forms, as 
necessary, for carrying out this section. The plan shall 
include an assessment of the following:
            (1) The systems of the Department of Defense that 
        currently have or could have cruise missile defense 
        capabilities and existing programs of the Department of 
        Defense to improve these capabilities.
            (2) The technologies that could be deployed in the 
        near- to mid-term to provide significant advances over 
        existing cruise missile defense capabilities and the 
        investments that would be required to ready those 
        technologies for deployment.
            (3) The cost and operational tradeoffs, if any, 
        between (A) upgrading existing air and missile defense 
        systems, and (B) accelerating follow-on systems with 
        significantly improved capabilities against advanced 
        cruise missiles.
            (4) The organizational and management changes that 
        would strengthen and further coordinate the cruise 
        missile defense programs of the Department of Defense, 
        including the disadvantages, if any, of implementing 
        such changes.
    (f) Definition.--For the purposes of this section, the term 
``cruise missile defense programs'' means the programs, 
projects, and activities of the military departments, the 
Advanced Research Projects Agency, and the Ballistic Missile 
Defense Organization relating to development and deployment of 
defenses against cruise missiles.

SEC. 275. MODIFICATION TO UNIVERSITY RESEARCH INITIATIVE SUPPORT 
                    PROGRAM.

    Section 802 of the National Defense Authorization Act for 
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1701) is 
amended--
            (1) in subsections (a) and (b), by striking out 
        ``shall'' both places it appears and inserting in lieu 
        thereof ``may''; and
            (2) in subsection (e), by striking out the sentence 
        beginning with ``Such selection process''.

SEC. 276. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) In General.--Section 2525 of title 10, United States 
Code, is amended as follows:
            (1) The heading is amended by striking out the 
        second and third words.
            (2) Subsection (a) is amended--
                    (A) by striking out ``Science and''; and
                    (B) by inserting after the first sentence 
                the following: ``The Secretary shall use the 
                joint planning process of the directors of the 
                Department of Defense laboratories in 
                establishing the program.''.
            (3) Subsection (c) is amended--
                    (A) by inserting ``(1)'' after ``(c) 
                Execution.--''; and
                    (B) by adding at the end the following:
    ``(2) The Secretary shall seek, to the extent practicable, 
the participation of manufacturers of manufacturing equipment 
in the projects under the program.''.
            (4) Subsection (d) is amended--
                    (A) in paragraph (2)--
                            (i) by striking out ``or'' at the 
                        end of subparagraph (A);
                            (ii) by striking out the period at 
                        the end of subparagraph (B) and 
                        inserting in lieu thereof ``; or''; and
                            (iii) by adding at the end the 
                        following new subparagraph:
            ``(C) will be carried out by an institution of 
        higher education.''; and
                    (B) by adding at the end the following new 
                paragraphs:
    ``(3) At least 25 percent of the funds available for the 
program each fiscal year shall be used for awarding grants and 
entering into contracts, cooperative agreements, and other 
transactions on a cost-share basis under which the ratio of 
recipient cost to Government cost is two to one.
    ``(4) If the requirement of paragraph (3) cannot be met by 
July 15 of a fiscal year, the Under Secretary of Defense for 
Acquisition and Technology may waive the requirement and 
obligate the balance of the funds available for the program for 
that fiscal year on a cost-share basis under which the ratio of 
recipient cost to Government cost is less than two to one. 
Before implementing any such waiver, the Under Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
the reasons for the waiver.''.
    (b) Clerical Amendment.--The item relating to section 2525 
in the table of sections at the beginning of subchapter IV of 
chapter 148 of title 10, United States Code, is amended to read 
as follows:

``2525. Manufacturing Technology Program.''.

SEC. 277. FIVE-YEAR PLAN FOR CONSOLIDATION OF DEFENSE LABORATORIES AND 
                    TEST AND EVALUATION CENTERS.

    (a) Five-Year Plan.--The Secretary of Defense, acting 
through the Vice Chief of Staff of the Army, the Vice Chief of 
Naval Operations, and the Vice Chief of Staff of the Air Force 
(in their roles as test and evaluation executive agent board of 
directors) shall develop a five-year plan to consolidate and 
restructure the laboratories and test and evaluation centers of 
the Department of Defense.
    (b) Objective.--The plan shall set forth the specific 
actions needed to consolidate the laboratories and test and 
evaluation centers into as few laboratories and centers as is 
practical and possible, in the judgment of the Secretary, by 
October 1, 2005.
    (c) Previously Developed Data Required To Be Used.--In 
developing the plan, the Secretary shall use the following:
            (1) Data and results obtained by the Test and 
        Evaluation Joint Cross-Service Group and the Laboratory 
        Joint Cross-Service Group in developing recommendations 
        for the 1995 report of the Defense Base Closure and 
        Realignment Commission.
            (2) The report dated March 1994 on the 
        consolidation and streamlining of the test and 
        evaluation infrastructure, commissioned by the test and 
        evaluation board of directors, along with all 
        supporting data and reports.
    (d) Matters To Be Considered.--In developing the plan, the 
Secretary shall consider, at a minimum, the following:
            (1) Consolidation of common support functions, 
        including the following:
                    (A) Aircraft (fixed wing and rotary) 
                support.
                    (B) Weapons support.
                    (C) Space systems support.
                    (D) Support of command, control, 
                communications, computers, and intelligence.
            (2) The extent to which any military construction, 
        acquisition of equipment, or modernization of equipment 
        is planned at the laboratories and centers.
            (3) The encroachment on the laboratories and 
        centers by residential and industrial expansion.
            (4) The total cost to the Federal Government of 
        continuing to operate the laboratories and centers.
            (5) The cost savings and program effectiveness of 
        locating laboratories and centers at the same sites.
            (6) Any loss of expertise resulting from the 
        consolidations.
            (7) Whether any legislation is neccessary to 
        provide the Secretary with any additional authority 
        necessary to accomplish the downsizing and 
        consolidation of the laboratories and centers.
    (e) Report.--Not later than May 1, 1996, the Secretary of 
Defense shall submit to the congressional defense committees a 
report on the plan. The report shall include an identification 
of any additional legislation that the Secretary considers 
necessary in order for the Secretary to accomplish the 
downsizing and consolidation of the laboratories and centers.
    (f) Limitation.--Of the amounts appropriated or otherwise 
made available pursuant to an authorization of appropriations 
in section 201 for the central test and evaluation investment 
development program, not more than 75 percent may be obligated 
before the report required by subsection (e) is submitted to 
Congress.

SEC. 278. LIMITATION ON T-38 AVIONICS UPGRADE PROGRAM.

    (a) Requirement.--The Secretary of Defense shall ensure 
that, in evaluating proposals submitted in response to a 
solicitation issued for a contract for the T-38 Avionics 
Upgrade Program, the proposal of an entity may not be 
considered unless--
            (1) in the case of an entity that conducts 
        substantially all of its business in a foreign country, 
        the foreign country provides equal access to similar 
        contract solicitations in that country to United States 
        entities; and
            (2) in the case of an entity that conducts business 
        in the United States but that is owned or controlled by 
        a foreign government or by an entity incorporated in a 
        foreign country, the foreign government or foreign 
        country of incorporation provides equal access to 
        similar contract solicitations in that country to 
        United States entities.
    (b) Definition.--In this section, the term ``United States 
entity'' means an entity that is owned or controlled by persons 
a majority of whom are United States citizens.

SEC. 279. GLOBAL POSITIONING SYSTEM.

    (a) Conditional Prohibition on Use of Selective 
Availability Feature.--Except as provided in subsection (b), 
after May 1, 1996, the Secretary of Defense may not (through 
use of the feature known as ``selective availability'') deny 
access of non-Department of Defense users to the full 
capabilities of the Global Positioning System.
    (b) Plan.--Subsection (a) shall cease to apply upon 
submission by the Secretary of Defense to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives of a plan for 
enhancement of the Global Positioning System that provides 
for--
            (1) development and acquisition of effective 
        capabilities to deny hostile military forces the 
        ability to use the Global Positioning System without 
        hindering the ability of United States military forces 
        and civil users to have access to and use of the 
        system, together with a specific date by which those 
        capabilities could be operational; and
            (2) development and acquisition of receivers for 
        the Global Positioning System and other techniques for 
        weapons and weapon systems that provide substantially 
        improved resistance to jamming and other forms of 
        electronic interference or disruption, together with a 
        specific date by which those receivers and other 
        techniques could be operational with United States 
        military forces.

SEC. 280. REVISION OF AUTHORITY FOR PROVIDING ARMY SUPPORT FOR THE 
                    NATIONAL SCIENCE CENTER FOR COMMUNICATIONS AND 
                    ELECTRONICS.

    (a) Purpose.--Subsection (b)(2) of section 1459 of the 
Department of Defense Authorization Act, 1986 (Public Law 99-
145; 99 Stat. 763) is amended by striking out ``to make 
available'' and all that follows and inserting in lieu thereof 
``to provide for the management, operation, and maintenance of 
those areas in the national science center that are designated 
for use by the Army and to provide incidental support for the 
operation of those areas in the center that are designated for 
general use.''.
    (b) Authority for Support.--Subsection (c) of such section 
is amended to read as follows:
    ``(c) National Science Center.--(1) The Secretary may 
manage, operate, and maintain facilities at the center under 
terms and conditions prescribed by the Secretary for the 
purpose of conducting educational outreach programs in 
accordance with chapter 111 of title 10, United States Code.
    ``(2) The Foundation, or NSC Discovery Center, 
Incorporated, a nonprofit corporation of the State of Georgia, 
shall submit to the Secretary for review and approval all 
matters pertaining to the acquisition, design, renovation, 
equipping, and furnishing of the center, including all plans, 
specifications, contracts, sites, and materials for the 
center.''.
    (c) Authority for Acceptance of Gifts and Fundraising.--
Subsection (d) of such section is amended to read as follows:
    ``(d) Gifts and Fundraising.--(1) Subject to paragraph (3), 
the Secretary may accept a conditional or unconditional 
donation of money or property that is made for the benefit of, 
or in connection with, the center.
    ``(2) Notwithstanding any other provision of law, the 
Secretary may endorse, promote, and assist the efforts of the 
Foundation and NSC Discovery Center, Incorporated, to obtain--
            ``(A) funds for the management, operation, and 
        maintenance of the center; and
            ``(B) donations of exhibits, equipment, and other 
        property for use in the center.
    ``(3) The Secretary may not accept a donation under this 
subsection that is made subject to--
            ``(A) any condition that is inconsistent with an 
        applicable law or regulation; or
            ``(B) except to the extent provided in 
        appropriations Acts, any condition that would 
        necessitate an expenditure of appropriated funds.
    ``(4) The Secretary shall prescribe in regulations the 
criteria to be used in determining whether to accept a 
donation. The Secretary shall include criteria to ensure that 
acceptance of a donation does not establish an unfavorable 
appearance regarding the fairness and objectivity with which 
the Secretary or any other officer or employee of the 
Department of Defense performs official responsibilities and 
does not compromise or appear to compromise the integrity of a 
Government program or any official involved in that program.''.
    (d) Authorized Uses.--Such section is amended--
            (1) by striking out subsection (f);
            (2) by redesignating subsection (g) as subsection 
        (f); and
            (3) in paragraph (1) of subsection (f), as 
        redesignated by paragraph (2), by inserting ``areas 
        designated for use by the Army in'' after ``The 
        Secretary may make''.
    (e) Alternative of Additional Development and Management.--
Such section, as amended by subsection (d), is further amended 
by adding at the end the following:
    ``(g) Alternative or Additional Development and Management 
of the Center.--(1) The Secretary may enter into an agreement 
with NSC Discovery Center, Incorporated, to develop, manage, 
and maintain a national science center under this section. In 
entering into an agreement with NSC Discovery Center, 
Incorporated, the Secretary may agree to any term or condition 
to which the Secretary is authorized under this section to 
agree for purposes of entering into an agreement with the 
Foundation.
    ``(2) The Secretary may exercise the authority under 
paragraph (1) in addition to, or instead of, exercising the 
authority provided under this section to enter into an 
agreement with the Foundation.''.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal 
year 1996 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for expenses, not 
otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For the Army, $18,746,695,000.
            (2) For the Navy, $21,493,155,000.
            (3) For the Marine Corps, $2,521,822,000.
            (4) For the Air Force, $18,719,277,000.
            (5) For Defense-wide activities, $9,910,476,000.
            (6) For the Army Reserve, $1,129,191,000.
            (7) For the Naval Reserve, $868,342,000.
            (8) For the Marine Corps Reserve, $100,283,000.
            (9) For the Air Force Reserve, $1,516,287,000.
            (10) For the Army National Guard, $2,361,808,000.
            (11) For the Air National Guard, $2,760,121,000.
            (12) For the Defense Inspector General, 
        $138,226,000.
            (13) For the United States Court of Appeals for the 
        Armed Forces, $6,521,000.
            (14) For Environmental Restoration, Defense, 
        $1,422,200,000.
            (15) For Drug Interdiction and Counter-drug 
        Activities, Defense-wide, $680,432,000.
            (16) For Medical Programs, Defense, $9,876,525,000.
            (17) For support for the 1996 Summer Olympics, 
        $15,000,000.
            (18) For Cooperative Threat Reduction programs, 
        $300,000,000.
            (19) For Overseas Humanitarian, Disaster, and Civic 
        Aid programs, $50,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1996 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for providing capital 
for working capital and revolving funds in amounts as follows:
            (1) For the Defense Business Operations Fund, 
        $878,700,000.
            (2) For the National Defense Sealift Fund, 
        $1,024,220,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal 
year 1996 from the Armed Forces Retirement Home Trust Fund the 
sum of $59,120,000 for the operation of the Armed Forces 
Retirement Home, including the United States Soldiers' and 
Airmen's Home and the Naval Home.

SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.

    (a) Transfer Authority.--To the extent provided in 
appropriations Acts, not more than $150,000,000 is authorized 
to be transferred from the National Defense Stockpile 
Transaction Fund to operation and maintenance accounts for 
fiscal year 1996 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.
    (b) Treatment of Transfers.--Amounts transferred under this 
section--
            (1) shall be merged with, and be available for the 
        same purposes and the same period as, the amounts in 
        the accounts to which transferred; and
            (2) may not be expended for an item that has been 
        denied authorization of appropriations by Congress.
    (c) Relationship to Other Transfer Authority.--The transfer 
authority provided in this section is in addition to the 
transfer authority provided in section 1001.

SEC. 305. CIVIL AIR PATROL.

    Of the amounts authorized to be appropriated pursuant to 
this Act, there shall be made available to the Civil Air Patrol 
$24,500,000, of which $14,704,000 shall be made available for 
the Civil Air Patrol Corporation.

                   Subtitle B--Depot-Level Activities

SEC. 311. POLICY REGARDING PERFORMANCE OF DEPOT-LEVEL MAINTENANCE AND 
                    REPAIR FOR THE DEPARTMENT OF DEFENSE.

    (a) Findings.--Congress makes the following findings:
            (1) The Department of Defense does not have a 
        comprehensive policy regarding the performance of 
        depot-level maintenance and repair of military 
        equipment.
            (2) The absence of such a policy has caused the 
        Congress to establish guidelines for the performance of 
        such functions.
            (3) It is essential to the national security of the 
        United States that the Department of Defense maintain 
        an organic capability within the department, including 
        skilled personnel, technical competencies, equipment, 
        and facilities, to perform depot-level maintenance and 
        repair of military equipment in order to ensure that 
        the Armed Forces of the United States are able to meet 
        training, operational, mobilization, and emergency 
        requirements without impediment.
            (4) The organic capability of the Department of 
        Defense to perform depot-level maintenance and repair 
        of military equipment must satisfy known and 
        anticipated core maintenance and repair requirements 
        across the full range of peacetime and wartime 
        scenarios.
            (5) Although it is possible that savings can be 
        achieved by contracting with private-sector sources for 
        the performance of some work currently performed by 
        Department of Defense depots, the Department of Defense 
        has not determined the type or amount of work that 
        should be performed under contract with private-sector 
        sources nor the relative costs and benefits of 
        contracting for the performance of such work by those 
        sources.
    (b) Sense of Congress.--It is the sense of Congress that 
there is a compelling need for the Department of Defense to 
articulate known and anticipated core maintenance and repair 
requirements, to organize the resources of the Department of 
Defense to meet those requirements economically and 
efficiently, and to determine what work should be performed by 
the private sector and how such work should be managed.
    (c) Requirement for Policy.--Not later than March 31, 1996, 
the Secretary of Defense shall develop and report to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a 
comprehensive policy on the performance of depot-level 
maintenance and repair for the Department of Defense that 
maintains the capability described in section 2464 of title 10, 
United States Code.
    (d) Content of Policy.--In developing the policy, the 
Secretary of Defense shall do each of the following:
            (1) Identify for each military department, with the 
        concurrence of the Secretary of that military 
        department, those depot-level maintenance and repair 
        activities that are necessary to ensure the depot-level 
        maintenance and repair capability as required by 
        section 2464 of title 10, United States Code.
            (2) Provide for performance of core depot-level 
        maintenance and repair capabilities in facilities owned 
        and operated by the United States.
            (3) Provide for the core capabilities to include 
        sufficient skilled personnel, equipment, and facilities 
        that--
                    (A) is of the proper size (i) to ensure a 
                ready and controlled source of technical 
                competence and repair and maintenance 
                capability necessary to meet the requirements 
                of the National Military Strategy and other 
                requirements for responding to mobilizations 
                and military contingencies, and (ii) to provide 
                for rapid augmentation in time of emergency; 
                and
                    (B) is assigned sufficient workload to 
                ensure cost efficiency and technical 
                proficiency in time of peace.
            (4) Address environmental liability.
            (5) In the case of depot-level maintenance and 
        repair workloads in excess of the workload required to 
        be performed by Department of Defense depots, provide 
        for competition for those workloads between public and 
        private entities when there is sufficient potential for 
        realizing cost savings based on adequate private-sector 
        competition and technical capabilities.
            (6) Address issues concerning exchange of technical 
        data between the Federal Government and the private 
        sector.
            (7) Provide for, in the Secretary's discretion and 
        after consultation with the Secretaries of the military 
        departments, the transfer from one military department 
        to another, in accordance with merit-based selection 
        processes, workload that supports the core depot-level 
        maintenance and repair capabilities in facilities owned 
        and operated by the United States.
            (8) Require that, in any competition for a workload 
        (whether among private-sector sources or between depot-
        level activities of the Department of Defense and 
        private-sector sources), bids are evaluated under a 
        methodology that ensures that appropriate costs to the 
        Government and the private sector are identified.
            (9) Provide for the performance of maintenance and 
        repair for any new weapons systems defined as core, 
        under section 2464 of title 10, United States Code, in 
        facilities owned and operated by the United States.
    (e) Considerations.--In developing the policy, the 
Secretary shall take into consideration the following matters:
            (1) The national security interests of the United 
        States.
            (2) The capabilities of the public depots and the 
        capabilities of businesses in the private sector to 
        perform the maintenance and repair work required by the 
        Department of Defense.
            (3) Any applicable recommendations of the Defense 
        Base Closure and Realignment Commission that are 
        required to be implemented under the Defense Base 
        Closure and Realignment Act of 1990.
            (4) The extent to which the readiness of the Armed 
        Forces would be affected by a necessity to construct 
        new facilities to accommodate any redistribution of 
        depot-level maintenance and repair workloads that is 
        made in accordance with the recommendation of the 
        Defense Base Closure and Realignment Commission, under 
        the Defense Base Closure and Realignment Act of 1990, 
        that such workloads be consolidated at Department of 
        Defense depots or private-sector facilities.
            (5) Analyses of costs and benefits of alternatives, 
        including a comparative analysis of--
                    (A) the costs and benefits, including any 
                readiness implications, of any proposed policy 
                to convert to contractor performance of depot-
                level maintenance and repair workloads where 
                the workload is being performed by Department 
                of Defense personnel; and
                    (B) the costs and benefits, including any 
                readiness implications, of a policy to transfer 
                depot-level maintenance and repair workloads 
                among depots.
    (f) Repeal of 60/40 Requirement and Requirement Relating to 
Competition.--(1) Sections 2466 and 2469 of title 10, United 
States Code, are repealed.
    (2) The table of sections at the beginning of chapter 146 
of such title is amended by striking out the items relating to 
sections 2466 and 2469.
    (3) The amendments made by paragraphs (1) and (2) shall 
take effect on the date (after the date of the enactment of 
this Act) on which legislation is enacted that contains a 
provision that specifically states one of the following:
            (A) ``The policy on the performance of depot-level 
        maintenance and repair for the Department of Defense 
        that was submitted by the Secretary of Defense to the 
        Committee on Armed Services of the Senate and the 
        Committee on National Security of the House of 
        Representatives pursuant to section 311 of the National 
        Defense Authorization Act for Fiscal Year 1996 is 
        approved.''; or
            (B) ``The policy on the performance of depot-level 
        maintenance and repair for the Department of Defense 
        that was submitted by the Secretary of Defense to the 
        Committee on Armed Services of the Senate and the 
        Committee on National Security of the House of 
        Representatives pursuant to section 311 of the National 
        Defense Authorization Act for Fiscal Year 1996 is 
        approved with the following modifications:'' (with the 
        modifications being stated in matter appearing after 
        the colon).
    (g) Annual Report.--If legislation referred to in 
subsection (f)(3) is enacted, the Secretary of Defense shall, 
not later than March 1 of each year (beginning with the year 
after the year in which such legislation is enacted), submit to 
Congress a report that--
            (1) specifies depot maintenance core capability 
        requirements determined in accordance with the 
        procedures established to comply with the policy 
        prescribed pursuant to subsections (d)(2) and (d)(3);
            (2) specifies the planned amount of workload to be 
        accomplished by the depot-level activities of each 
        military department in support of those requirements 
        for the following fiscal year; and
            (3) identifies the planned amount of workload, 
        which--
                    (A) shall be measured by direct labor hours 
                and by amounts to be expended; and
                    (B) shall be shown separately for each 
                commodity group.
    (h) Review by General Accounting Office.--(1) The Secretary 
shall make available to the Comptroller General of the United 
States all information used by the Department of Defense in 
developing the policy under subsections (c) through (e) of this 
section.
    (2) Not later than 45 days after the date on which the 
Secretary submits to Congress the report required by subsection 
(c), the Comptroller General shall transmit to Congress a 
report containing a detailed analysis of the Secretary's 
proposed policy as reported under such subsection.
    (i) Report on Depot-Level Maintenance and Repair 
Workload.--Not later than March 31, 1996, the Secretary of 
Defense shall submit to Congress a report on the depot-level 
maintenance and repair workload of the Department of Defense. 
The report shall, to the maximum extent practicable, include 
the following:
            (1) An analysis of the need for and effect of the 
        requirement under section 2466 of title 10, United 
        States Code, that no more than 40 percent of the depot-
        level maintenance and repair work of the Department of 
        Defense be contracted for performance by non-Government 
        personnel, including a description of the effect on 
        military readiness and the national security resulting 
        from that requirement and a description of any specific 
        difficulties experienced by the Department of Defense 
        as a result of that requirement.
            (2) An analysis of the distribution during the five 
        fiscal years ending with fiscal year 1995 of the depot-
        level maintenance and repair workload of the Department 
        of Defense between depot-level activities of the 
        Department of Defense and non-Government personnel, 
        measured by direct labor hours and by amounts expended, 
        and displayed, for that five-year period and for each 
        year of that period, so as to show (for each military 
        department (and separately for the Navy and Marine 
        Corps)) such distribution.
            (3) A projection of the distribution during the 
        five fiscal years beginning with fiscal year 1997 of 
        the depot-level maintenance and repair workload of the 
        Department of Defense between depot-level activities of 
        the Department of Defense and non-Government personnel, 
        measured by direct labor hours and by amounts expended, 
        and displayed, for that five-year period and for each 
        year of that period, so as to show (for each military 
        department (and separately for the Navy and Marine 
        Corps)) such distribution that would be accomplished 
        under a new policy as required under subsection (c).
    (j) Other Review by General Accounting Office.--(1) The 
Comptroller General of the United States shall conduct an 
independent audit of the findings of the Secretary of Defense 
in the report under subsection (i). The Secretary of Defense 
shall provide to the Comptroller General for such purpose all 
information used by the Secretary in preparing such report.
    (2) Not later than 45 days after the date on which the 
Secretary of Defense submits to Congress the report required 
under subsection (i), the Comptroller General shall transmit to 
Congress a report containing a detailed analysis of the report 
submitted under that subsection.

SEC. 312. MANAGEMENT OF DEPOT EMPLOYEES.

    (a) Depot Employees.--Chapter 146 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 2472. Management of depot employees

    ``(b) Annual Report.--Not later than December 1 of each 
fiscal year, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report on 
the number of employees employed and expected to be employed by 
the Department of Defense during that fiscal year to perform 
depot-level maintenance and repair of materiel. The report 
shall indicate whether that number is sufficient to perform the 
depot-level maintenance and repair functions for which funds 
are expected to be provided for that fiscal year for 
performance by Department of Defense employees.''.
    (b) Transfer of Subsection.--Subsection (b) of section 2466 
of title 10, United States Code, is transferred to section 2472 
of such title, as added by subsection (a), redesignated as 
subsection (a), and inserted after the section heading.
    (c) Submission of Initial Report.--The report under 
subsection (b) of section 2472 of title 10, United States Code, 
as added by subsection (a), for fiscal year 1996 shall be 
submitted not later than March 15, 1996 (notwithstanding the 
date specified in such subsection).
    (d) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2472. Management of depot employees.''.

SEC. 313. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL 
                    SHIPYARDS TO ENGAGE IN DEFENSE-RELATED PRODUCTION 
                    AND SERVICES.

    Section 1425(e) of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is 
amended by striking out ``September 30, 1995'' and inserting in 
lieu thereof ``September 30, 1996''.

SEC. 314. MODIFICATION OF NOTIFICATION REQUIREMENT REGARDING USE OF 
                    CORE LOGISTICS FUNCTIONS WAIVER.

    Section 2464(b) of title 10, United States Code, is amended 
by striking out paragraphs (3) and (4) and inserting in lieu 
thereof the following new paragraph:
    ``(3) A waiver under paragraph (2) may not take effect 
until the end of the 30-day period beginning on the date on 
which the Secretary submits a report on the waiver to the 
Committee on Armed Services and the Committee on Appropriations 
of the Senate and the Committee on National Security and the 
Committee on Appropriations of the House of Representatives.''.

                  Subtitle C--Environmental Provisions

SEC. 321. REVISION OF REQUIREMENTS FOR AGREEMENTS FOR SERVICES UNDER 
                    ENVIRONMENTAL RESTORATION PROGRAM.

    (a) Requirements.--(1) Section 2701(d) of title 10, United 
States Code, is amended to read as follows:
    ``(d) Services of Other Agencies.--
            ``(1) In general.--Subject to paragraph (2), the 
        Secretary may enter into agreements on a reimbursable 
        or other basis with any other Federal agency, or with 
        any State or local government agency, to obtain the 
        services of the agency to assist the Secretary in 
        carrying out any of the Secretary's responsibilities 
        under this section. Services which may be obtained 
        under this subsection include the identification, 
        investigation, and cleanup of any off-site 
        contamination resulting from the release of a hazardous 
        substance or waste at a facility under the Secretary's 
        jurisdiction.
            ``(2) Limitation on reimbursable agreements.--An 
        agreement with an agency under paragraph (1) may not 
        provide for reimbursement of the agency for regulatory 
        enforcement activities.''.
    (2)(A) Except as provided in subparagraph (B), the total 
amount of funds available for reimbursements under agreements 
entered into under section 2710(d) of title 10, United States 
Code, as amended by paragraph (1), in fiscal year 1996 may not 
exceed $10,000,000.
    (B) The Secretary of Defense may pay in fiscal year 1996 an 
amount for reimbursements under agreements referred to in 
subparagraph (A) in excess of the amount specified in that 
subparagraph for that fiscal year if--
            (i) the Secretary certifies to Congress that the 
        payment of the amount under this subparagraph is 
        essential for the management of the Defense 
        Environmental Restoration Program under chapter 160 of 
        title 10, United States Code; and
            (ii) a period of 60 days has expired after the date 
        on which the certification is received by Congress.
    (b) Report on Services Obtained.--The Secretary of Defense 
shall include in the report submitted to Congress with respect 
to fiscal year 1998 under section 2706(a) of title 10, United 
States Code, information on the services, if any, obtained by 
the Secretary during fiscal year 1996 pursuant to each 
agreement on a reimbursable basis entered into with a State or 
local government agency under section 2701(d) of title 10, 
United States Code, as amended by subsection (a). The 
information shall include a description of the services 
obtained under each agreement and the amount of the 
reimbursement provided for the services.

SEC. 322. ADDITION OF AMOUNTS CREDITABLE TO DEFENSE ENVIRONMENTAL 
                    RESTORATION ACCOUNT.

    Section 2703(e) of title 10, United States Code, is amended 
to read as follows:
    ``(e) Amounts Recovered.--The following amounts shall be 
credited to the transfer account:
            ``(1) Amounts recovered under CERCLA for response 
        actions of the Secretary.
            ``(2) Any other amounts recovered by the Secretary 
        or the Secretary of the military department concerned 
        from a contractor, insurer, surety, or other person to 
        reimburse the Department of Defense for any expenditure 
        for environmental response activities.''.

SEC. 323. USE OF DEFENSE ENVIRONMENTAL RESTORATION ACCOUNT.

    (a) Goal for Certain DERA Expenditures.--It shall be the 
goal of the Secretary of Defense to limit, by the end of fiscal 
year 1997, spending for administration, support, studies, and 
investigations associated with the Defense Environmental 
Restoration Account to 20 percent of the total funding for that 
account.
    (b) Report.--Not later than April 1, 1996, the Secretary 
shall submit to Congress a report that contains specific, 
detailed information on--
            (1) the extent to which the Secretary has attained 
        the goal described in subsection (a) as of the date of 
        the submission of the report; and
            (2) if the Secretary has not attained such goal by 
        such date, the actions the Secretary plans to take to 
        attain the goal.

SEC. 324. REVISION OF AUTHORITIES RELATING TO RESTORATION ADVISORY 
                    BOARDS.

    (a) Regulations.--Paragraph (2) of subsection (d) of 
section 2705 of title 10, United States Code, is amended to 
read as follows:
    ``(2)(A) The Secretary shall prescribe regulations 
regarding the establishment, characteristics, composition, and 
funding of restoration advisory boards pursuant to this 
subsection.
    ``(B) The issuance of regulations under subparagraph (A) 
shall not be a precondition to the establishment of restoration 
advisory boards under this subsection.''.
    (b) Funding for Administrative Expenses.--Paragraph (3) of 
such subsection is amended to read as follows:
    ``(3) The Secretary may authorize the commander of an 
installation (or, if there is no such commander, an appropriate 
official of the Department of Defense designated by the 
Secretary) to pay routine administrative expenses of a 
restoration advisory board established for that installation. 
Such payments shall be made from funds available under 
subsection (g).''.
    (c) Technical Assistance.--Such section is further amended 
by striking out subsection (e) and inserting in lieu thereof 
the following new subsection (e):
    ``(e) Technical Assistance.--(1) The Secretary may, upon 
the request of the technical review committee or restoration 
advisory board for an installation, authorize the commander of 
the installation (or, if there is no such commander, an 
appropriate official of the Department of Defense designated by 
the Secretary) to obtain for the committee or advisory board, 
as the case may be, from private sector sources technical 
assistance for interpreting scientific and engineering issues 
with regard to the nature of environmental hazards at the 
installation and the restoration activities conducted, or 
proposed to be conducted, at the installation. The commander of 
an installation (or, if there is no such commander, an 
appropriate official of the Department of Defense designated by 
the Secretary) shall use funds made available under subsection 
(g) for obtaining assistance under this paragraph.
    ``(2) The commander of an installation (or, if there is no 
such commander, an appropriate official of the Department of 
Defense designated by the Secretary) may obtain technical 
assistance under paragraph (1) for a technical review committee 
or restoration advisory board only if--
            ``(A) the technical review committee or restoration 
        advisory board demonstrates that the Federal, State, 
        and local agencies responsible for overseeing 
        environmental restoration at the installation, and 
        available Department of Defense personnel, do not have 
        the technical expertise necessary for achieving the 
        objective for which the technical assistance is to be 
        obtained; or
            ``(B) the technical assistance--
                    ``(i) is likely to contribute to the 
                efficiency, effectiveness, or timeliness of 
                environmental restoration activities at the 
                installation; and
                    ``(ii) is likely to contribute to community 
                acceptance of environmental restoration 
                activities at the installation.''.
    (d) Funding.--(1) Such section is further amended by adding 
at the end the following new subsection:
    ``(g) Funding.--The Secretary shall, to the extent provided 
in appropriations Acts, make funds available for administrative 
expenses and technical assistance under this section using 
funds in the following accounts:
            ``(1) In the case of a military installation not 
        approved for closure pursuant to a base closure law, 
        the Defense Environmental Restoration Account 
        established under section 2703(a) of this title.
            ``(2) In the case of an installation approved for 
        closure pursuant to such a law, the Department of 
        Defense Base Closure Account 1990 established under 
        section 2906(a) of the Defense Base Closure and 
        Realignment Act of 1990 (part A of title XXIX of Public 
        Law 101-510; 10 U.S.C. 2687 note).''.
    (2)(A) Subject to subparagraph (B), the total amount of 
funds made available under section 2705(g) of title 10, United 
States Code, as added by paragraph (1), for fiscal year 1996 
may not exceed $6,000,000.
    (B) Amounts may not be made available under subsection (g) 
of such section 2705 after September 15, 1996, unless the 
Secretary of Defense publishes proposed final or interim final 
regulations required under subsection (d) of such section, as 
amended by subsection (a).
    (e) Definition.--Such section is further amended by adding 
after subsection (g) (as added by subsection (d)) the following 
new subsection:
    ``(h) Definition.--In this section, the term `base closure 
law' means the following:
            ``(1) Title II of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public 
        Law 100-526; 10 U.S.C. 2687 note).
            ``(2) The Defense Base Closure and Realignment Act 
        of 1990 (part A of title XXIX of Public Law 101-510; 10 
        U.S.C. 2687 note).
            ``(3) Section 2687 of this title.''.
    (f) Reports on Activities of Technical Review Committees 
and Restoration Advisory Boards.--Section 2706(a)(2) of title 
10, United States Code, is amended by adding at the end the 
following:
            ``(J) A statement of the activities, if any, 
        including expenditures for administrative expenses and 
        technical assistance under section 2705 of this title, 
        of the technical review committee or restoration 
        advisory board established for the installation under 
        such section during the preceding fiscal year.''.

SEC. 325. DISCHARGES FROM VESSELS OF THE ARMED FORCES.

    (a) Purposes.--The purposes of this section are to--
            (1) enhance the operational flexibility of vessels 
        of the Armed Forces domestically and internationally;
            (2) stimulate the development of innovative vessel 
        pollution control technology; and
            (3) advance the development by the United States 
        Navy of environmentally sound ships.
    (b) Uniform National Discharge Standards Development.--
Section 312 of the Federal Water Pollution Control Act (33 
U.S.C. 1322) is amended by adding at the end the following:
    ``(n) Uniform National Discharge Standards for Vessels of 
the Armed Forces.--
            ``(1) Applicability.--This subsection shall apply 
        to vessels of the Armed Forces and discharges, other 
        than sewage, incidental to the normal operation of a 
        vessel of the Armed Forces, unless the Secretary of 
        Defense finds that compliance with this subsection 
        would not be in the national security interests of the 
        United States.
            ``(2) Determination of discharges required to be 
        controlled by marine pollution control devices.--
                    ``(A) In general.--The Administrator and 
                the Secretary of Defense, after consultation 
                with the Secretary of the department in which 
                the Coast Guard is operating, the Secretary of 
                Commerce, and interested States, shall jointly 
                determine the discharges incidental to the 
                normal operation of a vessel of the Armed 
                Forces for which it is reasonable and 
                practicable to require use of a marine 
                pollution control device to mitigate adverse 
                impacts on the marine environment. 
                Notwithstanding subsection (a)(1) of section 
                553 of title 5, United States Code, the 
                Administrator and the Secretary of Defense 
                shall promulgate the determinations in 
                accordance with such section. The Secretary of 
                Defense shall require the use of a marine 
                pollution control device on board a vessel of 
                the Armed Forces in any case in which it is 
                determined that the use of such a device is 
                reasonable and practicable.
                    ``(B) Considerations.--In making a 
                determination under subparagraph (A), the 
                Administrator and the Secretary of Defense 
                shall take into consideration--
                            ``(i) the nature of the discharge;
                            ``(ii) the environmental effects of 
                        the discharge;
                            ``(iii) the practicability of using 
                        the marine pollution control device;
                            ``(iv) the effect that installation 
                        or use of the marine pollution control 
                        device would have on the operation or 
                        operational capability of the vessel;
                            ``(v) applicable United States law;
                            ``(vi) applicable international 
                        standards; and
                            ``(vii) the economic costs of the 
                        installation and use of the marine 
                        pollution control device.
            ``(3) Performance standards for marine pollution 
        control devices.--
                    ``(A) In general.--For each discharge for 
                which a marine pollution control device is 
                determined to be required under paragraph (2), 
                the Administrator and the Secretary of Defense, 
                in consultation with the Secretary of the 
                department in which the Coast Guard is 
                operating, the Secretary of State, the 
                Secretary of Commerce, other interested Federal 
                agencies, and interested States, shall jointly 
                promulgate Federal standards of performance for 
                each marine pollution control device required 
                with respect to the discharge. Notwithstanding 
                subsection (a)(1) of section 553 of title 5, 
                United States Code, the Administrator and the 
                Secretary of Defense shall promulgate the 
                standards in accordance with such section.
                    ``(B) Considerations.--In promulgating 
                standards under this paragraph, the 
                Administrator and the Secretary of Defense 
                shall take into consideration the matters set 
                forth in paragraph (2)(B).
                    ``(C) Classes, types, and sizes of 
                vessels.--The standards promulgated under this 
                paragraph may--
                            ``(i) distinguish among classes, 
                        types, and sizes of vessels;
                            ``(ii) distinguish between new and 
                        existing vessels; and
                            ``(iii) provide for a waiver of the 
                        applicability of the standards as 
                        necessary or appropriate to a 
                        particular class, type, age, or size of 
                        vessel.
            ``(4) Regulations for use of marine pollution 
        control devices.--The Secretary of Defense, after 
        consultation with the Administrator and the Secretary 
        of the department in which the Coast Guard is 
        operating, shall promulgate such regulations governing 
        the design, construction, installation, and use of 
        marine pollution control devices on board vessels of 
        the Armed Forces as are necessary to achieve the 
        standards promulgated under paragraph (3).
            ``(5) Deadlines; effective date.--
                    ``(A) Determinations.--The Administrator 
                and the Secretary of Defense shall--
                            ``(i) make the initial 
                        determinations under paragraph (2) not 
                        later than 2 years after the date of 
                        the enactment of this subsection; and
                            ``(ii) every 5 years--
                                    ``(I) review the 
                                determinations; and
                                    ``(II) if necessary, revise 
                                the determinations based on 
                                significant new information.
                    ``(B) Standards.--The Administrator and the 
                Secretary of Defense shall--
                            ``(i) promulgate standards of 
                        performance for a marine pollution 
                        control device under paragraph (3) not 
                        later than 2 years after the date of a 
                        determination under paragraph (2) that 
                        the marine pollution control device is 
                        required; and
                            ``(ii) every 5 years--
                                    ``(I) review the standards; 
                                and
                                    ``(II) if necessary, revise 
                                the standards, consistent with 
                                paragraph (3)(B) and based on 
                                significant new information.
                    ``(C) Regulations.--The Secretary of 
                Defense shall promulgate regulations with 
                respect to a marine pollution control device 
                under paragraph (4) as soon as practicable 
                after the Administrator and the Secretary of 
                Defense promulgate standards with respect to 
                the device under paragraph (3), but not later 
                than 1 year after the Administrator and the 
                Secretary of Defense promulgate the standards. 
                The regulations promulgated by the Secretary of 
                Defense under paragraph (4) shall become 
                effective upon promulgation unless another 
                effective date is specified in the regulations.
                    ``(D) Petition for review.--The Governor of 
                any State may submit a petition requesting that 
                the Secretary of Defense and the Administrator 
                review a determination under paragraph (2) or a 
                standard under paragraph (3), if there is 
                significant new information, not considered 
                previously, that could reasonably result in a 
                change to the particular determination or 
                standard after consideration of the matters set 
                forth in paragraph (2)(B). The petition shall 
                be accompanied by the scientific and technical 
                information on which the petition is based. The 
                Administrator and the Secretary of Defense 
                shall grant or deny the petition not later than 
                2 years after the date of receipt of the 
                petition.
            ``(6) Effect on other laws.--
                    ``(A) Prohibition on regulation by states 
                or political subdivisions of states.--Beginning 
                on the effective date of--
                            ``(i) a determination under 
                        paragraph (2) that it is not reasonable 
                        and practicable to require use of a 
                        marine pollution control device 
                        regarding a particular discharge 
                        incidental to the normal operation of a 
                        vessel of the Armed Forces; or
                            ``(ii) regulations promulgated by 
                        the Secretary of Defense under 
                        paragraph (4);
                except as provided in paragraph (7), neither a 
                State nor a political subdivision of a State 
                may adopt or enforce any statute or regulation 
                of the State or political subdivision with 
                respect to the discharge or the design, 
                construction, installation, or use of any 
                marine pollution control device required to 
                control discharges from a vessel of the Armed 
                Forces.
                    ``(B) Federal laws.--This subsection shall 
                not affect the application of section 311 to 
                discharges incidental to the normal operation 
                of a vessel.
            ``(7) Establishment of state no-discharge zones.--
                    ``(A) State prohibition.--
                            ``(i) In general.--After the 
                        effective date of--
                                    ``(I) a determination under 
                                paragraph (2) that it is not 
                                reasonable and practicable to 
                                require use of a marine 
                                pollution control device 
                                regarding a particular 
                                discharge incidental to the 
                                normal operation of a vessel of 
                                the Armed Forces; or
                                    ``(II) regulations 
                                promulgated by the Secretary of 
                                Defense under paragraph (4);
                        if a State determines that the 
                        protection and enhancement of the 
                        quality of some or all of the waters 
                        within the State require greater 
                        environmental protection, the State may 
                        prohibit 1 or more discharges 
                        incidental to the normal operation of a 
                        vessel, whether treated or not treated, 
                        into the waters. No prohibition shall 
                        apply until the Administrator makes the 
                        determinations described in subclauses 
                        (II) and (III) of subparagraph (B)(i).
                            ``(ii) Documentation.--To the 
                        extent that a prohibition under this 
                        paragraph would apply to vessels of the 
                        Armed Forces and not to other types of 
                        vessels, the State shall document the 
                        technical or environmental basis for 
                        the distinction.
                    ``(B) Prohibition by the administrator.--
                            ``(i) In general.--Upon application 
                        of a State, the Administrator shall by 
                        regulation prohibit the discharge from 
                        a vessel of 1 or more discharges 
                        incidental to the normal operation of a 
                        vessel, whether treated or not treated, 
                        into the waters covered by the 
                        application if the Administrator 
                        determines that--
                                    ``(I) the protection and 
                                enhancement of the quality of 
                                the specified waters within the 
                                State require a prohibition of 
                                the discharge into the waters;
                                    ``(II) adequate facilities 
                                for the safe and sanitary 
                                removal of the discharge 
                                incidental to the normal 
                                operation of a vessel are 
                                reasonably available for the 
                                waters to which the prohibition 
                                would apply; and
                                    ``(III) the prohibition 
                                will not have the effect of 
                                discriminating against a vessel 
                                of the Armed Forces by reason 
                                of the ownership or operation 
                                by the Federal Government, or 
                                the military function, of the 
                                vessel.
                            ``(ii) Approval or disapproval.--
                        The Administrator shall approve or 
                        disapprove an application submitted 
                        under clause (i) not later than 90 days 
                        after the date on which the application 
                        is submitted to the Administrator. 
                        Notwithstanding clause (i)(II), the 
                        Administrator shall not disapprove an 
                        application for the sole reason that 
                        there are not adequate facilities to 
                        remove any discharge incidental to the 
                        normal operation of a vessel from 
                        vessels of the Armed Forces.
                    ``(C) Applicability to foreign flagged 
                vessels.--A prohibition under this paragraph--
                            ``(i) shall not impose any design, 
                        construction, manning, or equipment 
                        standard on a foreign flagged vessel 
                        engaged in innocent passage unless the 
                        prohibition implements a generally 
                        accepted international rule or 
                        standard; and
                            ``(ii) that relates to the 
                        prevention, reduction, and control of 
                        pollution shall not apply to a foreign 
                        flagged vessel engaged in transit 
                        passage unless the prohibition 
                        implements an applicable international 
                        regulation regarding the discharge of 
                        oil, oily waste, or any other noxious 
                        substance into the waters.
            ``(8) Prohibition relating to vessels of the armed 
        forces.--After the effective date of the regulations 
        promulgated by the Secretary of Defense under paragraph 
        (4), it shall be unlawful for any vessel of the Armed 
        Forces subject to the regulations to--
                    ``(A) operate in the navigable waters of 
                the United States or the waters of the 
                contiguous zone, if the vessel is not equipped 
                with any required marine pollution control 
                device meeting standards established under this 
                subsection; or
                    ``(B) discharge overboard any discharge 
                incidental to the normal operation of a vessel 
                in waters with respect to which a prohibition 
                on the discharge has been established under 
                paragraph (7).
            ``(9) Enforcement.--This subsection shall be 
        enforceable, as provided in subsections (j) and (k), 
        against any agency of the United States responsible for 
        vessels of the Armed Forces notwithstanding any 
        immunity asserted by the agency.''.
    (c) Conforming Amendments.--
            (1) Definitions.--Section 312(a) of the Federal 
        Water Pollution Control Act (33 U.S.C. 1322(a)) is 
        amended--
                    (A) in paragraph (8)--
                            (i) by striking ``or''; and
                            (ii) by inserting ``or agency of 
                        the United States,'' after 
                        ``association,'';
                    (B) in paragraph (11), by striking the 
                period at the end and inserting a semicolon; 
                and
                    (C) by adding at the end the following:
            ``(12) `discharge incidental to the normal 
        operation of a vessel'--
                    ``(A) means a discharge, including--
                            ``(i) graywater, bilge water, 
                        cooling water, weather deck runoff, 
                        ballast water, oil water separator 
                        effluent, and any other pollutant 
                        discharge from the operation of a 
                        marine propulsion system, shipboard 
                        maneuvering system, crew habitability 
                        system, or installed major equipment, 
                        such as an aircraft carrier elevator or 
                        a catapult, or from a protective, 
                        preservative, or absorptive application 
                        to the hull of the vessel; and
                            ``(ii) a discharge in connection 
                        with the testing, maintenance, and 
                        repair of a system described in clause 
                        (i) whenever the vessel is waterborne; 
                        and
                    ``(B) does not include--
                            ``(i) a discharge of rubbish, 
                        trash, garbage, or other such material 
                        discharged overboard;
                            ``(ii) an air emission resulting 
                        from the operation of a vessel 
                        propulsion system, motor driven 
                        equipment, or incinerator; or
                            ``(iii) a discharge that is not 
                        covered by part 122.3 of title 40, Code 
                        of Federal Regulations (as in effect on 
                        the date of the enactment of subsection 
                        (n));
            ``(13) `marine pollution control device' means any 
        equipment or management practice, for installation or 
        use on board a vessel of the Armed Forces, that is--
                    ``(A) designed to receive, retain, treat, 
                control, or discharge a discharge incidental to 
                the normal operation of a vessel; and
                    ``(B) determined by the Administrator and 
                the Secretary of Defense to be the most 
                effective equipment or management practice to 
                reduce the environmental impacts of the 
                discharge consistent with the considerations 
                set forth in subsection (n)(2)(B); and
            ``(14) `vessel of the Armed Forces' means--
                    ``(A) any vessel owned or operated by the 
                Department of Defense, other than a time or 
                voyage chartered vessel; and
                    ``(B) any vessel owned or operated by the 
                Department of Transportation that is designated 
                by the Secretary of the department in which the 
                Coast Guard is operating as a vessel equivalent 
                to a vessel described in subparagraph (A).''.
            (2) Enforcement.--The first sentence of section 
        312(j) of the Federal Water Pollution Control Act (33 
        U.S.C. 1322(j)) is amended--
                    (A) by striking ``of this section or'' and 
                inserting a comma; and
                    (B) by striking ``of this section shall'' 
                and inserting ``, or subsection (n)(8) shall''.
            (3) Other definitions.--Subparagraph (A) of the 
        second sentence of section 502(6) of the Federal Water 
        Pollution Control Act (33 U.S.C. 1362(6)) is amended by 
        striking `` `sewage from vessels' '' and inserting `` 
        `sewage from vessels or a discharge incidental to the 
        normal operation of a vessel of the Armed Forces' ''.
    (d) Cooperation in Standards Development.--The 
Administrator of the Environmental Protection Agency and the 
Secretary of Defense may, by mutual agreement, with or without 
reimbursement, provide for the use of information, reports, 
personnel, or other resources of the Environmental Protection 
Agency or the Department of Defense to carry out section 312(n) 
of the Federal Water Pollution Control Act (as added by 
subsection (b)), including the use of the resources--
            (1) to determine--
                    (A) the nature and environmental effect of 
                discharges incidental to the normal operation 
                of a vessel of the Armed Forces;
                    (B) the practicability of using marine 
                pollution control devices on vessels of the 
                Armed Forces; and
                    (C) the effect that installation or use of 
                marine pollution control devices on vessels of 
                the Armed Forces would have on the operation or 
                operational capability of the vessels; and
            (2) to establish performance standards for marine 
        pollution control devices on vessels of the Armed 
        Forces.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 331. OPERATION OF COMMISSARY SYSTEM.

    (a) Cooperation With Other Entities.--Section 2482 of title 
10, United States Code, is amended--
            (1) in the section heading, by striking out 
        ``private'';
            (2) by inserting ``(a) Private Operation.--'' 
        before ``Private persons''; and
            (3) by adding at the end the following new 
        subsection:
    ``(b) Contracts With Other Agencies and 
Instrumentalities.--(1) The Defense Commissary Agency, and any 
other agency of the Department of Defense that supports the 
operation of the commissary system, may enter into a contract 
or other agreement with another department, agency, or 
instrumentality of the Department of Defense or another Federal 
agency to provide services beneficial to the efficient 
management and operation of the commissary system.
    ``(2) A commissary store operated by a nonappropriated fund 
instrumentality of the Department of Defense shall be operated 
in accordance with section 2484 of this title. Subject to such 
section, the Secretary of Defense may authorize a transfer of 
goods, supplies, and facilities of, and funds appropriated for, 
the Defense Commissary Agency or any other agency of the 
Department of Defense that supports the operation of the 
commissary system to a nonappropriated fund instrumentality for 
the operation of a commissary store.''.
    (b) Clerical Amendment.--The item relating to such section 
in the table of sections at the beginning of chapter 147 of 
such title is amended to read as follows:

``2482. Commissary stores: operation.''.

SEC. 332. LIMITED RELEASE OF COMMISSARY STORES SALES INFORMATION TO 
                    MANUFACTURERS, DISTRIBUTORS, AND OTHER VENDORS 
                    DOING BUSINESS WITH DEFENSE COMMISSARY AGENCY.

    Section 2487(b) of title 10, United States Code, is amended 
in the second sentence by inserting before the period the 
following: ``unless the agreement is between the Defense 
Commissary Agency and a manufacturer, distributor, or other 
vendor doing business with the Agency and is restricted to 
information directly related to  merchandise  provided  by  
that  manufacturer,  distributor,  or vendor''.

SEC. 333. ECONOMICAL DISTRIBUTION OF DISTILLED SPIRITS BY 
                    NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Economical Distribution.--Subsection (a)(1) of section 
2488 of title 10, United States Code, is amended by inserting 
after ``most competitive source'' the following: ``and 
distributed in the most economical manner''.
    (b) Determination of Most Economical Distribution Method.--
Such section is further amended--
            (1) by redesignating subsection (c) as subsection 
        (d); and
            (2) by inserting after subsection (b) the following 
        new subsection:
    ``(c)(1) In the case of covered alcoholic beverage 
purchases of distilled spirits, to determine whether a 
nonappropriated fund instrumentality of the Department of 
Defense provides the most economical method of distribution to 
package stores, the Secretary of Defense shall consider all 
components of the distribution costs incurred by the 
nonappropriated fund instrumentality, such as overhead costs 
(including costs associated with management, logistics, 
administration, depreciation, and utilities), the costs of 
carrying inventory, and handling and distribution costs.
    ``(2) If the use of a private distributor would subject 
covered alcoholic beverage purchases of distilled spirits to 
direct or indirect State taxation, a nonappropriated fund 
instrumentality shall be considered to be the most economical 
method of distribution regardless of the results of the 
determination under paragraph (1).
    ``(3) The Secretary shall use the agencies performing audit 
functions on behalf of the armed forces and the Inspector 
General of the Department of Defense to make determinations 
under this subsection.''.

SEC. 334. TRANSPORTATION BY COMMISSARIES AND EXCHANGES TO OVERSEAS 
                    LOCATIONS.

    (a) In General.--Chapter 157 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2643. Commissary and exchange services: transportation overseas

    ``The Secretary of Defense shall authorize the officials 
responsible for operation of commissaries and military 
exchanges to negotiate directly with private carriers for the 
most cost-effective transportation of commissary and exchange 
supplies by sea without relying on the Military Sealift Command 
or the Military Traffic Management Command. Section 2631 of 
this title, regarding the preference for vessels of the United 
States or belonging to the United States in the transportation 
of supplies by sea, shall apply to the negotiation of 
transportation contracts under the authority of this 
section.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2643. Commissary and exchange services: transportation overseas.''.

SEC. 335. DEMONSTRATION PROJECT FOR UNIFORM FUNDING OF MORALE, WELFARE, 
                    AND RECREATION ACTIVITIES AT CERTAIN MILITARY 
                    INSTALLATIONS.

    (a) Demonstration Project Required.--(1) The Secretary of 
Defense shall conduct a demonstration project to evaluate the 
feasibility of using only nonappropriated funds to support 
morale, welfare, and recreation programs at military 
installations in order to facilitate the procurement of 
property and services for those programs and the management of 
employees used to carry out those programs.
    (2) Under the demonstration project--
            (A) procurements of property and services for 
        programs referred to in paragraph (1) may be carried 
        out in accordance with laws and regulations applicable 
        to procurements paid for with nonappropriated funds; 
        and
            (B) appropriated funds available for such programs 
        may be expended in accordance with laws applicable to 
        expenditures of nonappropriated funds as if the 
        appropriated funds were nonappropriated funds.
    (3) The Secretary shall prescribe regulations to carry out 
paragraph (2). The regulations shall provide for financial 
management and accounting of appropriated funds expended in 
accordance with subparagraph (B) of such paragraph.
    (b) Covered Military Installations.--The Secretary shall 
select not less than three and not more than six military 
installations to participate in the demonstration project.
    (c) Period of Demonstration Project.--The demonstration 
project shall terminate not later than September 30, 1998.
    (d) Effect on Employees.--For the purpose of testing fiscal 
accounting procedures, the Secretary may convert, for the 
duration of the demonstration project, the status of an 
employee who carries out a program referred to in subsection 
(a)(1) from the status of an employee paid by appropriated 
funds to the status of a nonappropriated fund instrumentality 
employee, except that such conversion may occur only--
            (1) if the employee whose status is to be 
        converted--
                    (A) is fully informed of the effects of 
                such conversion on the terms and conditions of 
                the employment of that employee for purposes of 
                title 5, United States Code, and on the 
                benefits provided to that employee under such 
                title; and
                    (B) consents to such conversion; or
            (2) in a manner which does not affect such terms 
        and conditions of employment or such benefits.
    (e) Reports.--(1) Not later than six months after the date 
of the enactment of this Act, the Secretary shall submit to 
Congress an interim report on the implementation of this 
section.
    (2) Not later than December 31, 1998, the Secretary shall 
submit to Congress a final report on the results of the 
demonstration project. The report shall include a comparison 
of--
            (A) the cost incurred under the demonstration 
        project in using employees paid by appropriated funds 
        together with nonappropriated fund instrumentality 
        employees to carry out the programs referred to in 
        subsection (a)(1); and
            (B) an estimate of the cost that would have been 
        incurred if only nonappropriated fund instrumentality 
        employees had been used to carry out such programs.

SEC. 336. OPERATION OF COMBINED EXCHANGE AND COMMISSARY STORES.

    (a) In General.--(1) Chapter 147 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2490a. Combined exchange and commissary stores

    ``(a) Authority.--The Secretary of Defense may authorize a 
nonappropriated fund instrumentality to operate a military 
exchange and a commissary store as a combined exchange and 
commissary store on a military installation.
    ``(b) Limitations.--(1) Not more than ten combined exchange 
and commissary stores may be operated pursuant to this section.
    ``(2) The Secretary may select a military installation for 
the operation of a combined exchange and commissary store under 
this section only if--
            ``(A) the installation is to be closed, or has been 
        or is to be realigned, under a base closure law; or
            ``(B) a military exchange and a commissary store 
        are operated at the installation by separate entities 
        at the time of, or immediately before, such selection 
        and it is not economically feasible to continue that 
        separate operation.
    ``(c) Operation at Carswell Field.--Combined exchange and 
commissary stores operated under this section shall include the 
combined exchange and commissary store that is operated at the 
Naval Air Station Fort Worth, Joint Reserve Center, Carswell 
Field, Texas, under the authority provided in section 375 of 
the National Defense Authorization Act for Fiscal Year 1995 
(Public Law 103-337; 108 Stat. 2736).
    ``(d) Adjustments and Surcharges.--Adjustments to, and 
surcharges on, the sales price of a grocery food item sold in a 
combined exchange and commissary store under this section shall 
be provided for in accordance with the same laws that govern 
such adjustments and surcharges for items sold in a commissary 
store of the Defense Commissary Agency.
    ``(e) Use of Appropriated Funds.--(1) If a nonappropriated 
fund instrumentality incurs a loss in operating a combined 
exchange and commissary store at a military installation under 
this section as a result of the requirement set forth in 
subsection (d), the Secretary may authorize a transfer of funds 
available for the Defense Commissary Agency to the 
nonappropriated fund instrumentality to offset the loss.
    ``(2) The total amount of appropriated funds transferred 
during a fiscal year to support the operation of a combined 
exchange and commissary store at a military installation under 
this section may not exceed an amount that is equal to 25 
percent of the amount of appropriated funds that was provided 
for the operation of the commissary store of the Defense 
Commissary Agency on that installation during the last full 
fiscal year of operation of that commissary store.
    ``(f) Definitions.--In this section:
            ``(1) The term `nonappropriated fund 
        instrumentality' means the Army and Air Force Exchange 
        Service, Navy Exchange Service Command, Marine Corps 
        exchanges, or any other instrumentality of the United 
        States under the jurisdiction of the Armed Forces which 
        is conducted for the comfort, pleasure, contentment, or 
        physical or mental improvement of members of the Armed 
        Forces.
            ``(2) The term `base closure law' has the meaning 
        given such term by section 2667(g) of this title.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``2490a. Combined exchange and commissary stores.''.

    (b) Conforming Amendment.--Section 375 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 108 Stat. 2736) is amended by striking out ``, until 
December 31, 1995,''.

SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES.

    (a) Use of Commercial Banking Institution.--(1) As soon as 
practicable after the date of the enactment of this Act, the 
Secretary of Defense shall seek to enter into an agreement with 
a commercial banking institution under which the institution 
agrees to finance and operate the deferred payment program of 
the Army and Air Force Exchange Service and the deferred 
payment program of the Navy Exchange Service Command. The 
Secretary shall use competitive procedures to enter into an 
agreement under this paragraph.
    (2) In order to facilitate the transition of the operation 
of the programs referred to in paragraph (1) to commercial 
operation under an agreement described in that paragraph, the 
Secretary may initially limit the scope of any such agreement 
so as to apply to only one of the programs.
    (b) Report.--Not later than December 31, 1995, the 
Secretary shall submit to Congress a report on the 
implementation of this section. The report shall also include 
an analysis of the impact of the deferred payment programs 
referred to in subsection (a)(1), including the impact of the 
default and collection procedures under such programs, on 
members of the Armed Forces and their families.

SEC. 338. AVAILABILITY OF FUNDS TO OFFSET EXPENSES INCURRED BY ARMY AND 
                    AIR FORCE EXCHANGE SERVICE ON ACCOUNT OF TROOP 
                    REDUCTIONS IN EUROPE.

    Of funds authorized to be appropriated under section 
301(5), not less than $70,000,000 shall be available to the 
Secretary of Defense for transfer to the Army and Air Force 
Exchange Service to offset expenses incurred by the Army and 
Air Force Exchange Service on account of reductions in the 
number of members of the United States Armed Forces assigned to 
permanent duty ashore in Europe.

SEC. 339. STUDY REGARDING IMPROVING EFFICIENCIES IN OPERATION OF 
                    MILITARY EXCHANGES AND OTHER MORALE, WELFARE, AND 
                    RECREATION ACTIVITIES AND COMMISSARY STORES.

    (a) Study Required.--The Secretary of Defense shall conduct 
a study regarding the manner in which greater efficiencies can 
be achieved in the operation of--
            (1) military exchanges;
            (2) other instrumentalities of the United States 
        under the jurisdiction of the Armed Forces which are 
        conducted for the comfort, pleasure, contentment, or 
        physical or mental improvement of members of the Armed 
        Forces; and
            (3) commissary stores.
    (b) Report of Study.--Not later than March 1, 1996, the 
Secretary of Defense shall submit to Congress a report 
describing the results of the study and containing such 
recommendations as the Secretary considers appropriate to 
implement options identified in the study to achieve the 
greater efficiencies referred to in subsection (a).

SEC. 340. REPEAL OF REQUIREMENT TO CONVERT SHIPS' STORES TO 
                    NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Repeal.--Section 371 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 
U.S.C. 7604 note) is amended--
            (1) by striking out subsections (a) and (b); and
            (2) by redesignating subsections (c) and (d) as 
        subsections (a) and (b), respectively.
    (b) Inspector General Review.--Not later than April 1, 
1996, the Inspector General of the Department of Defense shall 
submit to Congress a report that reviews the report on the 
costs and benefits of converting to operation of Navy ships' 
stores by nonappropriated fund instrumentalities that the Navy 
Audit Agency prepared in connection with the postponement of 
the deadline for the conversion provided for in section 374(a) 
of the National Defense Authorization Act for Fiscal Year 1995 
(Public Law 103-337; 108 Stat. 2736).

SEC. 341. DISPOSITION OF EXCESS MORALE, WELFARE, AND RECREATION FUNDS.

    Section 2219 of title 10, United States Code, is amended--
            (1) in the first sentence, by striking out ``a 
        military department'' and inserting in lieu thereof 
        ``an armed force'';
            (2) in the second sentence--
                    (A) by striking out ``, department-wide''; 
                and
                    (B) by striking out ``of the military 
                department'' and inserting in lieu thereof 
                ``for that armed force''; and
            (3) by adding at the end the following: ``This 
        section does not apply to the Coast Guard.''.

SEC. 342. CLARIFICATION OF ENTITLEMENT TO USE OF MORALE, WELFARE, AND 
                    RECREATION FACILITIES BY MEMBERS OF RESERVE 
                    COMPONENTS AND DEPENDENTS.

    (a) In General.--Section 1065 of title 10, United States 
Code, is amended to read as follows:

``Sec. 1065. Morale, welfare, and recreation retail facilities: use by 
                    members of reserve components and dependents

    ``(a) Members of the Selected Reserve.--A member of the 
Selected Reserve in good standing (as determined by the 
Secretary concerned) shall be permitted to use MWR retail 
facilities on the same basis as members on active duty.
    ``(b) Members of Ready Reserve Not in Selected Reserve.--
Subject to such regulations as the Secretary of Defense may 
prescribe, a member of the Ready Reserve (other than members of 
the Selected Reserve) may be permitted to use MWR retail 
facilities on the same basis as members serving on active duty.
    ``(c) Reserve Retirees Under Age 60.--A member or former 
member of a reserve component under 60 years of age who, but 
for age, would be eligible for retired pay under chapter 1223 
of this title shall be permitted to use MWR retail facilities 
on the same basis as members of the armed forces entitled to 
retired pay under any other provision of law.
    ``(d) Dependents.--(1) Dependents of a member who is 
permitted under subsection (a) or (b) to use MWR retail 
facilities shall be permitted to use such facilities on the 
same basis as dependents of members on active duty.
    ``(2) Dependents of a member who is permitted under 
subsection (c) to use MWR retail facilities shall be permitted 
to use such facilities on the same basis as dependents of 
members of the armed forces entitled to retired pay under any 
other provision of law.
    ``(e) MWR Retail Facility Defined.--In this section, the 
term `MWR retail facilities' means exchange stores and other 
revenue-generating facilities operated by nonappropriated fund 
activities of the Department of Defense for the morale, 
welfare, and recreation of members of the armed forces.''.
    (b) Clerical Amendment.--The item relating to such section 
in the table of sections at the beginning of chapter 54 of such 
title is amended to read as follows:

``1065. Morale, welfare, and recreation retail facilities: use by 
          members of reserve components and dependents.''.

     Subtitle E--Performance of Functions by Private-Sector Sources

SEC. 351. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.

    (a) Requirement for Competitive Procurement.--Except as 
provided in subsection (b), the Secretary of Defense shall, 
during fiscal year 1996 and consistent with the requirements of 
title 44, United States Code, competitively procure printing 
and duplication services from private-sector sources for the 
performance of at least 70 percent of the total printing and 
duplication requirements of the Defense Printing Service.
    (b) Exception for Classified Information.--The requirement 
of subsection (a) shall not apply to the procurement of 
services for printing and duplicating classified documents and 
information.

SEC. 352. DIRECT VENDOR DELIVERY SYSTEM FOR CONSUMABLE INVENTORY ITEMS 
                    OF DEPARTMENT OF DEFENSE.

    (a) Implementation of Direct Vendor Delivery System.--Not 
later than September 30, 1997, the Secretary of Defense shall, 
to the maximum extent practicable, implement a system under 
which consumable inventory items referred to in subsection (b) 
are delivered to military installations throughout the United 
States directly by the vendors of those items. The purpose for 
implementing the system is to reduce the expense and necessity 
of maintaining extensive warehouses for those items within the 
Department of Defense.
    (b) Covered Items.--The items referred to in subsection (a) 
are the following:
            (1) Food and clothing.
            (2) Medical and pharmaceutical supplies.
            (3) Automotive, electrical, fuel, and construction 
        supplies.
            (4) Other consumable inventory items the Secretary 
        considers appropriate.

SEC. 353. PAYROLL, FINANCE, AND ACCOUNTING FUNCTIONS OF THE DEPARTMENT 
                    OF DEFENSE.

    (a) Plan for Private Operation of Certain Functions.--(1) 
Not later than October 1, 1996, the Secretary of Defense shall 
submit to Congress a plan for the performance by private-sector 
sources of payroll functions for civilian employees of the 
Department of Defense other than employees paid from 
nonappropriated funds.
    (2)(A) The Secretary shall implement the plan referred to 
in paragraph (1) if the Secretary determines that the cost of 
performance by private-sector sources of the functions referred 
to in that paragraph does not exceed the cost of performance of 
those functions by employees of the Federal Government.
    (B) In computing the total cost of performance of such 
functions by employees of the Federal Government, the Secretary 
shall include the following:
            (i) Managerial and administrative costs.
            (ii) Personnel costs, including the cost of 
        providing retirement benefits for such personnel.
            (iii) Costs associated with the provision of 
        facilities and other support by Federal agencies.
    (C) The Defense Contract Audit Agency shall verify the 
costs computed for the Secretary under this paragraph by 
others.
    (3) At the same time the Secretary submits the plan 
required by paragraph (1), the Secretary shall submit to 
Congress a report on other accounting and finance functions of 
the Department that are appropriate for performance by private-
sector sources.
    (b) Pilot Program for Private Operation of NAFI 
Functions.--(1) The Secretary shall carry out a pilot program 
to test the performance by private-sector sources of payroll 
and other accounting and finance functions of nonappropriated 
fund instrumentalities and to evaluate the extent to which cost 
savings and efficiencies would result from the performance of 
such functions by those sources.
    (2) The payroll and other accounting and finance functions 
designated by the Secretary for performance by private-sector 
sources under the pilot program shall include at least one 
major payroll, accounting, or finance function.
    (3) To carry out the pilot program, the Secretary shall 
enter into discussions with private-sector sources for the 
purpose of developing a request for proposals to be issued for 
performance by those sources of functions designated by the 
Secretary under paragraph (2). The discussions shall be 
conducted on a schedule that accommodates issuance of a request 
for proposals within 60 days after the date of the enactment of 
this Act.
    (4) A goal of the pilot program is to reduce by at least 25 
percent the total costs incurred by the Department annually for 
the performance of a function referred to in paragraph (2) 
through the performance of that function by a private-sector 
source.
    (5) Before conducting the pilot program, the Secretary 
shall develop a plan for the program that addresses the 
following:
            (A) The purposes of the program.
            (B) The methodology, duration, and anticipated 
        costs of the program, including the cost of an 
        arrangement pursuant to which a private-sector source 
        would receive an agreed-upon payment plus an additional 
        negotiated amount not to exceed 50 percent of the 
        dollar savings achieved in excess of the goal specified 
        in paragraph (4).
            (C) A specific citation to any provisions of law, 
        rule, or regulation that, if not waived, would prohibit 
        the conduct of the program or any part of the program.
            (D) A mechanism to evaluate the program.
            (E) A provision for all payroll, accounting, and 
        finance functions of nonappropriated fund 
        instrumentalities of the Department of Defense to be 
        performed by private-sectorsources, if determined 
advisable on the basis of a final assessment of the results of the 
program.
    (6) The Secretary shall act through the Under Secretary of 
Defense (Comptroller) in the performance of the Secretary's 
responsibilities under this subsection.
    (c) Limitation on Opening of New Operating Locations for 
Defense Finance and Accounting Service.--(1) Except as provided 
in paragraph (2), the Secretary may not establish a new 
operating location for the Defense Finance and Accounting 
Service during fiscal year 1996.
    (2) The Secretary may establish a new operating location 
for the Defense Finance and Accounting Service if--
            (A) for a new operating location that the Secretary 
        planned before the date of the enactment of this Act to 
        establish on or after that date, the Secretary 
        reconsiders the need for establishing that new 
        operating location; and
            (B) for each new operating location, including a 
        new operating location referred to in subparagraph 
        (A)--
                    (i) the Secretary submits to Congress, as 
                part of the report required by subsection 
                (a)(4), an analysis of the need for 
                establishing the new operating location; and
                    (ii) a period of 30 days elapses after the 
                Congress receives the report.
    (3) In this subsection, the term ``new operating location'' 
means an operating location that is not in operation on the 
date of the enactment of this Act, except that such term does 
not include an operating location for which, as of such date--
            (A) the Secretary has established a date for the 
        commencement of operations; and
            (B) funds have been expended for the purpose of its 
        establishment.

SEC. 354. DEMONSTRATION PROGRAM TO IDENTIFY OVERPAYMENTS MADE TO 
                    VENDORS.

    (a) In General.--The Secretary of Defense shall conduct a 
demonstration program to evaluate the feasibility of using 
private contractors to audit accounting and procurement records 
of the Department of Defense in order to identify overpayments 
made to vendors by the Department. The demonstration program 
shall be conducted for the Defense Logistics Agency and include 
the Defense Personnel Support Center.
    (b) Program Requirements.--(1) Under the demonstration 
program, the Secretary shall, by contract, provide for one or 
more persons to audit the accounting and procurement records of 
the Defense Logistics Agency that relate to (at least) fiscal 
years 1993, 1994, and 1995. The Secretary may enter into more 
than one contract under the program.
    (2) A contract under the demonstration program shall 
require the contractor to use data processing techniques that 
are generally used in audits of private-sector records similar 
to the records audited under the contract.
    (c) Audit Requirements.--In conducting an audit under the 
demonstration program, a contractor shall compare Department of 
Defense purchase agreements (and related documents) with 
invoices submitted by vendors under the purchase agreements. A 
purpose of the comparison is to identify, in the case of each 
audited purchase agreement, the following:
            (1) Any payments to the vendor for costs that are 
        not allowable under the terms of the purchase agreement 
        or by law.
            (2) Any amounts not deducted from the total amount 
        paid to the vendor under the purchase agreement that 
        should have been deducted from that amount on account 
        of goods and services provided to the vendor by the 
        Department.
            (3) Duplicate payments.
            (4) Unauthorized charges.
            (5) Other discrepancies between the amount paid to 
        the vendor and the amount actually due the vendor under 
        the purchase agreement.
    (d) Bonus Payment.--To the extent provided for in a 
contract under the demonstration program, the Secretary may pay 
the contractor a bonus in addition to any other amount paid for 
performance of the contract. The amount of such bonus may not 
exceed the amount that is equal to 25 percent of all amounts 
recovered by the United States on the basis of information 
obtained as a result of the audit performed under the contract. 
Any such bonus shall be paid out of amounts made available 
pursuant to subsection (e).
    (e) Availability of Funds.--Of the amount authorized to be 
appropriated pursuant to section 301(5), not more than 
$5,000,000 shall be available for the demonstration program.

SEC. 355. PILOT PROGRAM ON PRIVATE OPERATION OF DEFENSE DEPENDENTS' 
                    SCHOOLS.

    (a) Pilot Program.--The Secretary of Defense may conduct a 
pilot program to evaluate the feasibility of using private 
contractors to operate schools of the defense dependents' 
education system established under section 1402(a) of the 
Defense Dependents' Education Act of 1978 (20 U.S.C. 921(a)).
    (b) Selection of School for Program.--If the Secretary 
conducts the pilot program, the Secretary shall select one 
school of the defense dependents' education system for 
participation in the program and provide for the operation of 
the school by a private contractor for not less than one 
complete school year.
    (c) Report.--Not later than 30 days after the end of the 
first school year in which the pilot program is conducted, the 
Secretary shall submit to Congress a report on the results of 
the program. The report shall include the recommendation of the 
Secretary with respect to the extent to which other schools of 
the defense dependents' education system should be operated by 
private contractors.

SEC. 356. PROGRAM FOR IMPROVED TRAVEL PROCESS FOR THE DEPARTMENT OF 
                    DEFENSE.

    (a) In General.--(1) The Secretary of Defense shall conduct 
a program to evaluate options to improve the Department of 
Defense travel process. To carry out the program, the Secretary 
shall compare the results of the tests conducted under 
subsection (b) to determine which travel process tested under 
such subsection is the better option to effectively manage 
travel of Department personnel.
    (2) The program shall be conducted at not less than three 
and not more than six military installations, except that an 
installation may be the subject of only one test conducted 
under the program.
    (3) The Secretary shall act through the Under Secretary of 
Defense (Comptroller) in the performance of the Secretary's 
responsibilities under this section.
    (b) Conduct of Tests.--(1) The Secretary shall conduct a 
test at an installation referred to in subsection (a)(2) under 
which the Secretary--
            (A) implements the changes proposed to be made with 
        respect to the Department of Defense travel process by 
        the task force on travel management that was 
        established by the Secretary in July 1994;
            (B) manages and uniformly applies that travel 
        process (including the implemented changes) throughout 
        the Department; and
            (C) provides opportunities for private-sector 
        sources to provide travel reservation services and 
        credit card services to facilitate that travel process.
    (2) The Secretary shall conduct a test at an installation 
referred to in subsection (a)(2) under which the Secretary--
            (A) enters into one or more contracts with a 
        private-sector source pursuant to which the private-
        sector source manages the Department of Defense travel 
        process (except for functions referred to in 
        subparagraph (B)), provides for responsive, reasonably 
        priced services as part of the travel process, and 
        uniformly applies the travel process throughout the 
        Department; and
            (B) provides for the performance by employees of 
        the Department of only those travel functions, such as 
        travel authorization, that the Secretary considers to 
        be necessary to be performed by such employees.
    (3) Each test required by this subsection shall begin not 
later than 60 days after the date of the enactment of this Act 
and end two years after the date on which it began. Each such 
test shall also be conducted in accordance with the guidelines 
for travel management issued for the Department by the Under 
Secretary of Defense (Comptroller).
    (c) Evaluation Criteria.--The Secretary shall establish 
criteria to evaluate the travel processes tested under 
subsection (b). The criteria shall, at a minimum, include the 
extent to which a travel process provides for the following:
            (1) The coordination, at the time of a travel 
        reservation, of travel policy and cost estimates with 
        the mission which necessitates the travel.
            (2) The use of fully integrated travel solutions 
        envisioned by the travel reengineering report of the 
        Department of Defense dated January 1995.
            (3) The coordination of credit card data and travel 
        reservation data with cost estimate data.
            (4) The elimination of the need for multiple travel 
        approvals through the coordination of such data with 
        proposed travel plans.
            (5) A responsive and flexible management 
        information system that enables the Under Secretary of 
        Defense (Comptroller) to monitor travel expenses 
        throughout the year, accurately plan travel budgets for 
        future years, and assess, in the case of travel of an 
        employee on temporary duty, the relationship between 
        the cost of the travel and the value of the travel to 
        the accomplishment of the mission which necessitates 
        the travel.
    (d) Plan for Program.--Before conducting the program, the 
Secretary shall develop a plan for the program that addresses 
the following:
            (1) The purposes of the program, including the 
        achievement of an objective of reducing by at least 50 
        percent the total cost incurred by the Department 
        annually to manage the Department of Defense travel 
        process.
            (2) The methodology and anticipated cost of the 
        program, including the cost of an arrangement pursuant 
        to which a private-sector source would receive an 
        agreed-upon payment plus an additional negotiated 
        amount that does not exceed 50 percent of the total 
        amount saved in excess of the objective specified in 
        paragraph (1).
            (3) A specific citation to any provision or law, 
        rule, or regulation that, if not waived, would prohibit 
        the conduct of the program or any part of the program.
            (4) The evaluation criteria established pursuant to 
        subsection (c).
            (5) A provision for implementing throughout the 
        Department the travel process determined to be the 
        better option to effectively manage travel of 
        Department personnel on the basis of a final assessment 
        of the results of the program.
    (e) Report.--After the first full year of the conduct of 
the tests required by subsection (b), the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
a report on the implementation of the program. The report shall 
include an analysis of the evaluation criteria established 
pursuant to subsection (c).

SEC. 357. INCREASED RELIANCE ON PRIVATE-SECTOR SOURCES FOR COMMERCIAL 
                    PRODUCTS AND SERVICES.

    (a) In General.--The Secretary of Defense shall endeavor to 
carry out through a private-sector source any activity to 
provide a commercial product or service for the Department of 
Defense if--
            (1) the product or service can be provided 
        adequately through such a source; and
            (2) an adequate competitive environment exists to 
        provide for economical performance of the activity by 
        such a source.
    (b) Applicability.--(1) Subsection (a) shall not apply to 
any commercial product or service with respect to which the 
Secretary determines that production, manufacture, or provision 
of that product or service by the Government is necessary for 
reasons of national security.
    (2) A determination under paragraph (1) shall be made in 
accordance with regulations prescribed under subsection (c).
    (c) Regulations.--The Secretary shall prescribe regulations 
to carry out this section. Such regulations shall be prescribed 
in consultation with the Director of the Office of Management 
and Budget.
    (d) Report.--(1) The Secretary shall identify activities of 
the Department (other than activities specified by the 
Secretary pursuant to subsection (b)) that are carried out by 
employees of the Department to provide commercial-type products 
or services for the Department.
    (2) Not later than April 15, 1996, the Secretary shall 
transmit to the congressional defense committees a report on 
opportunities for increased use of private-sector sources to 
provide commercial products and services for the Department.
    (3) The report required by paragraph (2) shall include the 
following:
            (A) A list of activities identified under paragraph 
        (1) indicating, for each activity, whether the 
        Secretary proposes to convert the performance of that 
        activity to performance by private-sector sources and, 
        if not, the reasons why.
            (B) An assessment of the advantages and 
        disadvantages of using private-sector sources, rather 
        than employees of the Department, to provide commercial 
        products and services for the Department that are not 
        essential to the warfighting mission of the Armed 
        Forces.
            (C) A specification of all legislative and 
        regulatory impediments to converting the performance of 
        activities identified under paragraph (1) to 
        performance by private-sector sources.
            (D) The views of the Secretary on the desirability 
        of terminating the applicability of OMB Circular A-76 
        to the Department.
    (4) The Secretary shall carry out paragraph (1) in 
consultation with the Director of the Office of Management and 
Budget and the Comptroller General of the United States. In 
carrying out that paragraph, the Secretary shall consult with, 
and seek the views of, representatives of the private sector, 
including organizations representing small businesses.

        Subtitle F--Miscellaneous Reviews, Studies, and Reports

SEC. 361. QUARTERLY READINESS REPORTS.

    (a) In General.--(1) Chapter 22 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 452. Quarterly readiness reports

    ``(a) Requirement.--Not later than 30 days after the end of 
each calendar-year quarter, the Secretary of Defense shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
a report on military readiness. The report for any quarter 
shall be based on assessments that are provided during that 
quarter--
            ``(1) to any council, committee, or other body of 
        the Department of Defense (A) that has responsibility 
        for readiness oversight, and (B) the membership of 
        which includes at least one civilian officer in the 
        Office of the Secretary of Defense at the level of 
        Assistant Secretary of Defense or higher;
            ``(2) by senior civilian and military officers of 
        the military departments and the commanders of the 
        unified and specified commands; and
            ``(3) as part of any regularly established process 
        of periodic readiness reviews for the Department of 
        Defense as a whole.
    ``(b) Matters To Be Included.--Each such report shall--
            ``(1) specifically describe identified readiness 
        problems or deficiencies and planned remedial actions; 
        and
            ``(2) include the key indicators and other relevant 
        data related to the identified problem or deficiency.
    ``(c) Classification of Reports.--Reports under this 
section shall be submitted in unclassified form and may, as the 
Secretary determines necessary, also be submitted in classified 
form.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``452. Quarterly readiness reports.''.

    (b) Effective Date.--Section 452 of title 10, United States 
Code, as added by subsection (a), shall take effect with the 
calendar-year quarter during which this Act is enacted.

SEC. 362. RESTATEMENT OF REQUIREMENT FOR SEMIANNUAL REPORTS TO CONGRESS 
                    ON TRANSFERS FROM HIGH-PRIORITY READINESS 
                    APPROPRIATIONS.

    Section 361 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2732) is 
amended to read as follows:

``SEC. 361. SEMIANNUAL REPORTS TO CONGRESS ON TRANSFERS FROM HIGH-
                    PRIORITY READINESS APPROPRIATIONS.

    ``(a) Annual Reports.--During 1996 and 1997, the Secretary 
of Defense shall submit to the congressional defense committees 
a report on transfers during the preceding fiscal year from 
funds available for each budget activity specified in 
subsection (d) (hereinafter in this section referred to as 
`covered budget activities'). The report each year shall be 
submitted not later than the date in that year on which the 
President submits the budget for the next fiscal year to 
Congress pursuant to section 1105 of title 31, United States 
Code.
    ``(b) Midyear Reports.--On May 1 of each year specified in 
subsection (a), the Secretary of Defense shall submit to the 
congressional defense committees a report providing the same 
information, with respect to the first six months of the fiscal 
year in which the report is submitted, that is provided in 
reports under subsection (a) with respect to the preceding 
fiscal year.
    ``(c) Matters To Be Included.--In each report under this 
section, the Secretary shall include for each covered budget 
activity the following:
            ``(1) A statement, for the period covered by the 
        report, of--
                    ``(A) the total amount of transfers into 
                funds available for that activity;
                    ``(B) the total amount of transfers from 
                funds available for that activity; and
                    ``(C) the net amount of transfers into, or 
                out of, funds available for that activity.
            ``(2) A detailed explanation of the transfers into, 
        and out of, funds available for that activity during 
        the period covered by the report.
    ``(d) Covered Budget Activities.--The budget activities to 
which this section applies are the following:
            ``(1) The budget activity groups (known as 
        `subactivities') within the Operating Forces budget 
        activity of the annual Operation and Maintenance, Army, 
        appropriation that are designated as follows:
                    ``(A) Combat Units.
                    ``(B) Tactical Support.
                    ``(C) Force-Related Training/Special 
                Activities.
                    ``(D) Depot Maintenance.
                    ``(E) JCS Exercises.
            ``(2) The budget activity groups (known as 
        `subactivities') within the Operating Forces budget 
        activity of the annual Operation and Maintenance, Navy, 
        appropriation that are designated as follows:
                    ``(A) Mission and Other Flight Operations.
                    ``(B) Mission and Other Ship Operations.
                    ``(C) Fleet Air Training.
                    ``(D) Ship Operational Support and 
                Training.
                    ``(E) Aircraft Depot Maintenance.
                    ``(F) Ship Depot Maintenance.
            ``(3) The budget activity groups (known as 
        `subactivities'), or other activity, within the 
        Operating Forces budget activity of the annual 
        Operation and Maintenance, Air Force, appropriation 
        that are designated or otherwise identified as follows:
                    ``(A) Primary Combat Forces.
                    ``(B) Primary Combat Weapons.
                    ``(C) Global and Early Warning.
                    ``(D) Air Operations Training.
                    ``(E) Depot Maintenance.
                    ``(F) JCS Exercises.''.

SEC. 363. REPORT REGARDING REDUCTION OF COSTS ASSOCIATED WITH CONTRACT 
                    MANAGEMENT OVERSIGHT.

    (a) Report Required.--Not later than April 1, 1996, the 
Comptroller General of the United States shall submit to 
Congress a report identifying methods to reduce the cost to the 
Department of Defense of management oversight of contracts in 
connection with major defense acquisition programs.
    (b) Major Defense Acquisition Programs Defined.--For 
purposes of this section, the term ``major defense acquisition 
program'' has the meaning given that term in section 2430(a) of 
title 10, United States Code.

SEC. 364. REVIEWS OF MANAGEMENT OF INVENTORY CONTROL POINTS AND 
                    MATERIEL MANAGEMENT STANDARD SYSTEM.

    (a) Review of Consolidation of Inventory Control Points.--
(1) The Secretary of Defense shall conduct a review of the 
management by the Defense Logistics Agency of all inventory 
control points of the Department of Defense. In conducting the 
review, the Secretary shall examine the management and 
acquisition practices of the Defense Logistics Agency for 
inventory of repairable spare parts.
    (2) Not later than March 31, 1996, the Secretary shall 
submit to the Comptroller General of the United States and the 
congressional defense committees a report on the results the 
review conducted under paragraph (1).
    (b) Review of Materiel Management Standard System.--(1) The 
Comptroller General of the United States shall conduct a review 
of the automated data processing system of the Department of 
Defense known as the Materiel Management Standard System.
    (2) Not later than May 1, 1996, the Comptroller General 
shall submit to the congressional defense committees a report 
on the results of the review conducted under paragraph (1).

SEC. 365. REPORT ON PRIVATE PERFORMANCE OF CERTAIN FUNCTIONS PERFORMED 
                    BY MILITARY AIRCRAFT.

    (a) Report Required.--Not later than May 1, 1996, the 
Secretary of Defense shall submit to Congress a report on the 
feasibility of providing for the performance by private-sector 
sources of functions necessary to be performed to fulfill the 
requirements of the Department of Defense for air 
transportation of personnel and cargo.
    (b) Content of Report.--The report shall include the 
following:
            (1) A cost-benefit analysis with respect to the 
        performance by private-sector sources of functions 
        described in subsection (a), including an explanation 
        of the assumptions used in the cost-benefit analysis.
            (2) An assessment of the issues raised by providing 
        for such performance by means of a contract entered 
        into with a private-sector source.
            (3) An assessment of the issues raised by providing 
        for such performance by means of converting functions 
        described in subsection (a) to private ownership and 
        operation, in whole or in part.
            (4) A discussion of the requirements for the 
        performance of such functions in order to fulfill the 
        requirements referred to in subsection (a) during 
        wartime.
            (5) The effect on military personnel and facilities 
        of using private-sector sources to fulfill the 
        requirements referred to in such subsection.
            (6) The performance by private-sector sources of 
        any other military aircraft functions (such as non-
        combat inflight fueling of aircraft) the Secretary 
        considers appropriate.

SEC. 366. STRATEGY AND REPORT ON AUTOMATED INFORMATION SYSTEMS OF 
                    DEPARTMENT OF DEFENSE.

    (a) Development of Strategy.--The Secretary of Defense 
shall develop a strategy for the development or modernization 
of automated information systems for the Department of Defense.
    (b) Matters To Consider.--In developing the strategy 
required under subsection (a), the Secretary shall consider the 
following:
            (1) The use of performance measures and management 
        controls.
            (2) Findings of the Functional Management Review 
        conducted by the Secretary.
            (3) Program management actions planned by the 
        Secretary.
            (4) Actions and milestones necessary for completion 
        of functional and economic analyses for--
                    (A) the Automated System for Transportation 
                data;
                    (B) continuous acquisition and life cycle 
                support;
                    (C) electronic data interchange;
                    (D) flexible computer integrated 
                manufacturing;
                    (E) the Navy Tactical Command Support 
                System; and
                    (F) the Defense Information System Network.
            (5) Progress made by the Secretary in resolving 
        problems with respect to the Defense Information System 
        Network and the Joint Computer-Aided Acquisition and 
        Logistics Support System.
            (6) Tasks identified in the review conducted by the 
        Secretary of the Standard Installation/Division 
        Personnel System-3.
            (7) Such other matters as the Secretary considers 
        appropriate.
    (c) Report on Strategy.--(1) Not later than April 15, 1996, 
the Secretary shall submit to Congress a report on the 
development of the strategy required under subsection (a).
    (2) In the case of the Air Force Wargaming Center, the Air 
Force Command Exercise System, the Cheyenne Mountain Upgrade, 
the Transportation Coordinator Automated Command and Control 
Information Systems, and the Wing Command and Control Systems, 
the report required by paragraph (1) shall provide functional 
economic analyses and address waivers exercised for compelling 
military importance under section 381(d) of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 108 Stat. 2739).
    (3) The report required by paragraph (1) shall also include 
the following:
            (A) A certification by the Secretary of the 
        termination of the Personnel Electronic Record 
        Management System or a justification for the continued 
        need for such system.
            (B) Findings of the Functional Management Review 
        conducted by the Secretary and program management 
        actions planned by the Secretary for--
                    (i) the Base Level System Modernization and 
                the Sustaining Base Information System; and
                    (ii) the Standard Installation/Division 
                Personnel System-3.
            (C) An assessment of the implementation of 
        migration systems and applications, including--
                    (i) identification of the systems and 
                applications by functional or business area, 
                specifying target dates for operation of the 
                systems and applications;
                    (ii) identification of the legacy systems 
                and applications that will be terminated;
                    (iii) the cost of and schedules for 
                implementing the migration systems and 
                applications; and
                    (iv) termination schedules.
            (D) A certification by the Secretary that each 
        information system that is subject to review by the 
        Major Automated Information System Review Committee of 
        the Department is cost-effective and supports the 
        corporate information management goals of the 
        Department, including the results of the review 
        conducted for each such system by the Committee.

                       Subtitle G--Other Matters

SEC. 371. CODIFICATION OF DEFENSE BUSINESS OPERATIONS FUND.

    (a) Management of Working-Capital Funds.--(1) Chapter 131 
of title 10, United States Code, is amended by inserting after 
section 2215 the following new section:

``Sec. 2216. Defense Business Operations Fund

    ``(a) Management of Working-Capital Funds and Certain 
Activities.--The Secretary of Defense may manage the 
performance of the working-capital funds and industrial, 
commercial, and support type activities described in subsection 
(b) through the fund known as the Defense Business Operations 
Fund, which is established on the books of the Treasury. Except 
for the funds and activities specified in subsection (b), no 
other functions, activities, funds, or accounts of the 
Department of Defense may be managed or converted to management 
through the Fund.
    ``(b) Funds and Activities Included.--The funds and 
activities referred to in subsection (a) are the following:
            ``(1) Working-capital funds established under 
        section 2208 of this title and in existence on December 
        5, 1991.
            ``(2) Those activities that, on December 5, 1991, 
        were funded through the use of a working-capital fund 
        established under that section.
            ``(3) The Defense Finance and Accounting Service.
            ``(4) The Defense Commissary Agency.
            ``(5) The Defense Reutilization and Marketing 
        Service.
            ``(6) The Joint Logistics Systems Center.
    ``(c) Separate Accounting, Reporting, and Auditing of Funds 
and Activities.--(1) The Secretary of Defense shall provide in 
accordance with this subsection for separate accounting, 
reporting, and auditing of funds and activities managed through 
the Fund.
    ``(2) The Secretary shall maintain the separate identity of 
each fund and activity managed through the Fund that (before 
the establishment of the Fund) was managed as a separate Fund 
or activity.
    ``(3) The Secretary shall maintain separate records for 
each function for which payment is made through the Fund and 
which (before the establishment of the Fund) was paid directly 
through appropriations, including the separate identity of the 
appropriation account used to pay for the performance of the 
function.
    ``(d) Charges for Goods and Services Provided Through the 
Fund.--(1) Charges for goods and services provided through the 
Fund shall include the following:
            ``(A) Amounts necessary to recover the full costs 
        of the goods and services, whenever practicable, and 
        the costs of the development, implementation, 
        operation, and maintenance of systems supporting the 
        wholesale supply and maintenance activities of the 
        Department of Defense.
            ``(B) Amounts for depreciation of capital assets, 
        set in accordance with generally accepted accounting 
        principles.
            ``(C) Amounts necessary to recover the full cost of 
        the operation of the Defense Finance Accounting 
        Service.
    ``(2) Charges for goods and services provided through the 
Fund may not include the following:
            ``(A) Amounts necessary to recover the costs of a 
        military construction project (as defined in section 
        2801(b) of this title), other than a minor construction 
        project financed by the Fund pursuant to section 
        2805(c)(1) of this title.
            ``(B) Amounts necessary to cover costs incurred in 
        connection with the closure or realignment of a 
        military installation.
            ``(C) Amounts necessary to recover the costs of 
        functions designated by the Secretary of Defense as 
        mission critical, such as ammunition handling safety, 
        and amounts for ancillary tasks not directly related to 
        the mission of the function or activity managed through 
        the Fund.
    ``(3)(A) The Secretary of Defense may submit to a customer 
a bill for the provision of goods and services through the Fund 
in advance of the provision of those goods and services.
    ``(B) The Secretary shall submit to Congress a report on 
advance billings made pursuant to subparagraph (A)--
            ``(i) when the aggregate amount of all such 
        billings after the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 1996 
        reaches $100,000,000; and
            ``(ii) whenever the aggregate amount of all such 
        billings after the date of a preceding report under 
        this subparagraph reaches $100,000,000.
    ``(C) Each report under subparagraph (B) shall include, for 
each such advance billing, the following:
            ``(i) An explanation of the reason for the advance 
        billing.
            ``(ii) An analysis of the impact of the advance 
        billing on readiness.
            ``(iii) An analysis of the impact of the advance 
        billing on the customer so billed.
    ``(e) Capital Asset Subaccount.--(1) Amounts charged for 
depreciation of capital assets pursuant to subsection (d)(1)(B) 
shall be credited to a separate capital asset subaccount 
established within the Fund.
    ``(2) The Secretary of Defense may award contracts for 
capital assets of the Fund in advance of the availability of 
funds in the subaccount.
    ``(f) Procedures For Accumulation of Funds.--The Secretary 
of Defense shall establish billing procedures to ensure that 
the balance in the Fund does not exceed the amount necessary to 
provide for the working capital requirements of the Fund, as 
determined by the Secretary.
    ``(g) Purchase From Other Sources.--The Secretary of 
Defense or the Secretary of a military department may purchase 
goods and services that are available for purchase from the 
Fund from a source other than the Fund if the Secretary 
determines that such source offers a more competitive rate for 
the goods and services than the Fund offers.
    ``(h) Annual Reports and Budget.--The Secretary of Defense 
shall annually submit to Congress, at the same time that the 
President submits the budget under section 1105 of title 31, 
the following:
            ``(1) A detailed report that contains a statement 
        of all receipts and disbursements of the Fund 
        (including such a statement for each subaccount of the 
        Fund) for the fiscal year ending in the year preceding 
        the year in which the budget is submitted.
            ``(2) A detailed proposed budget for the operation 
        of the Fund for the fiscal year for which the budget is 
        submitted.
            ``(3) A comparison of the amounts actually expended 
        for the operation of the Fund for the fiscal year 
        referred to in paragraph (1) with the amount proposed 
        for the operation of the Fund for that fiscal year in 
        the President's budget.
            ``(4) A report on the capital asset subaccount of 
        the Fund that contains the following information:
                    ``(A) The opening balance of the subaccount 
                as of the beginning of the fiscal year in which 
                the report is submitted.
                    ``(B) The estimated amounts to be credited 
                to the subaccount in the fiscal year in which 
                the report is submitted.
                    ``(C) The estimated amounts of outlays to 
                be paid out of the subaccount in the fiscal 
                year in which the report is submitted.
                    ``(D) The estimated balance of the 
                subaccount at the end of the fiscal year in 
                which the report is submitted.
                    ``(E) A statement of how much of the 
                estimated balance at the end of the fiscal year 
                in which the report is submitted will be needed 
                to pay outlays in the immediately following 
                fiscal year that are in excess of the amount to 
                be credited to the subaccount in the 
                immediately following fiscal year.
    ``(i) Definitions.--In this section:
            ``(1) The term `capital assets' means the following 
        capital assets that have a development or acquisition 
        cost of not less than $50,000:
                    ``(A) Minor construction projects financed 
                by the Fund pursuant to section 2805(c)(1) of 
                this title.
                    ``(B) Automatic data processing equipment, 
                software.
                    ``(C) Equipment other than equipment 
                described in subparagraph (B).
                    ``(D) Other capital improvements.
            ``(2) The term `Fund' means the Defense Business 
        Operations Fund.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2215 
the following new item:

``2216. Defense Business Operations Fund.''.

    (b) Conforming Repeals.--The following provisions of law 
are hereby repealed:
            (1) Subsections (b), (c), (d), and (e) of section 
        311 of the National Defense Authorization Act for 
        Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 2208 
        note).
            (2) Subsections (a) and (b) of section 333 of the 
        National Defense Authorization Act for Fiscal Year 1994 
        (Public Law 103-160; 10 U.S.C. 2208 note).
            (3) Section 342 of the National Defense 
        Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 10 U.S.C. 2208 note).
            (4) Section 316 of the National Defense 
        Authorization Act for Fiscal Years 1992 and 1993 
        (Public Law 102-190; 10 U.S.C. 2208 note).
            (5) Section 8121 of the Department of Defense 
        Appropriations Act, 1992 (Public Law 102-172; 10 U.S.C. 
        2208 note).

SEC. 372. CLARIFICATION OF SERVICES AND PROPERTY THAT MAY BE EXCHANGED 
                    TO BENEFIT THE HISTORICAL COLLECTION OF THE ARMED 
                    FORCES.

    Section 2572(b)(1) of title 10, United States Code, is 
amended by striking out ``not needed by the armed forces'' and 
all that follows through the end of the paragraph and inserting 
in lieu thereof the following: ``not needed by the armed forces 
for any of the following items or services if such items or 
services directly benefit the historical collection of the 
armed forces:
            ``(A) Similar items held by any individual, 
        organization, institution, agency, or nation.
            ``(B) Conservation supplies, equipment, facilities, 
        or systems.
            ``(C) Search, salvage, or transportation services.
            ``(D) Restoration, conservation, or preservation 
        services.
            ``(E) Educational programs.''.

SEC. 373. FINANCIAL MANAGEMENT TRAINING.

    (a) Limitation.--The Secretary of Defense may enter into a 
capital lease for the establishment of a Department of Defense 
financial management training center no earlier than the date 
that is 30 days after the date on which the Secretary of 
Defense submits to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives, in accordance with subsection (b), a 
certification of the need for such a center and a report on 
financial management training for Department of Defense 
personnel.
    (b) Certification and Report.--(1) The certification and 
report referred to in subsection (a) are the following:
            (A) Certification by the Secretary of the need for 
        such a center.
            (B) A report, submitted with the certification, on 
        financial management training for Department of Defense 
        personnel.
    (2) Any report under paragraph (1) shall contain the 
following:
            (A) The Secretary's analysis of the requirements 
        for providing financial management training for 
        employees of the Department of Defense.
            (B) The alternatives considered by the Secretary 
        for meeting those requirements.
            (C) A detailed plan for meeting those requirements.
            (D) A financial analysis of the estimated short-
        term and long-term costs of carrying out the plan.
    (3) If, upon completing the analysis referred to in 
paragraph (2)(A) and after considering alternatives as 
described in paragraph (2)(B), the Secretary determines to meet 
the requirements for providing financial management training 
for employees of the Department of Defense through 
establishment of a financial management training center, the 
Secretary--
            (A) shall make the determination of the location of 
        the center using a merit-based selection process; and
            (B) shall include in the report under paragraph (1) 
        a description of that merit-based selection process.

SEC. 374. PERMANENT AUTHORITY FOR USE OF PROCEEDS FROM THE SALE OF 
                    CERTAIN LOST, ABANDONED, OR UNCLAIMED PROPERTY.

    (a) Permanent Authority.--Section 2575 of title 10 is 
amended--
            (1) by striking out subsection (b) and inserting in 
        lieu thereof the following:
    ``(b)(1) In the case of lost, abandoned, or unclaimed 
personal property found on a military installation, the 
proceeds from the sale of the property under this section shall 
be credited to the operation and maintenance account of that 
installation and used--
            ``(A) to reimburse the installation for any costs 
        incurred by the installation to collect, transport, 
        store, protect, or sell the property; and
            ``(B) to the extent that the amount of the proceeds 
        exceeds the amount necessary for reimbursing all such 
        costs, to support morale, welfare, and recreation 
        activities under the jurisdiction of the armed forces 
        that are conducted for the comfort, pleasure, 
        contentment, or physical or mental improvement of 
        members of the armed forces at such installation.
    ``(2) The net proceeds from the sale of other property 
under this section shall be covered into the Treasury as 
miscellaneous receipts.''; and
            (2) by adding at the end the following:
    ``(d)(1) The owner (or heirs, next of kin, or legal 
representative of the owner) of personal property the proceeds 
of which are credited to a military installation under 
subsection (b)(1) may file a claim with the Secretary of 
Defense for the amount equal to the proceeds (less costs 
referred to in subparagraph (A) of such subsection). Amounts to 
pay the claim shall be drawn from the morale, welfare, and 
recreation account for the installation that received the 
proceeds.
    ``(2) The owner (or heirs, next of kin, or legal 
representative of the owner) may file a claim with the 
Comptroller General of the United States for proceeds covered 
into the Treasury under subsection (b)(2).
    ``(3) Unless a claim is filed under this subsection within 
5 years after the date of the disposal of the property to which 
the claim relates, the claim may not be considered by a court, 
the Secretary of Defense (in the case of a claim filed under 
paragraph (1)), or the Comptroller General of the United States 
(in the case of a claim filed under paragraph (2)).''.
    (b) Repeal of Authority for Demonstration Program.--Section 
343 of the National Defense Authorization Act for Fiscal Years 
1992 and 1993 (Public Law 102-190; 105 Stat. 1343) is repealed.

SEC. 375. SALE OF MILITARY CLOTHING AND SUBSISTENCE AND OTHER SUPPLIES 
                    OF THE NAVY AND MARINE CORPS.

    (a) In General.--(1) Chapter 651 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 7606. Subsistence and other supplies: members of armed forces; 
                    veterans; executive or military departments and 
                    employees; prices

    ``(a)(1) The Secretary of the Navy shall procure and sell, 
for cash or credit--
            ``(A) articles designated by the Secretary to 
        members of the Navy and Marine Corps; and
            ``(B) items of individual clothing and equipment to 
        members of the Navy and Marine Corps, under such 
        restrictions as the Secretary may prescribe.
    ``(2) An account of sales on credit shall be kept and the 
amount due reported to the Secretary. Except for articles and 
items acquired through the use of working capital funds under 
section 2208 of this title, sales of articles shall be at cost, 
and sales of individual clothing and equipment shall be at 
average current prices, including overhead, as determined by 
the Secretary.
    ``(b) The Secretary shall sell subsistence supplies to 
members of other armed forces at the prices at which like 
property is sold to members of the Navy and Marine Corps.
    ``(c) The Secretary may sell serviceable supplies, other 
than subsistence supplies, to members of other armed forces for 
the buyers' use in the service. The prices at which the 
supplies are sold shall be the same prices at which like 
property is sold to members of the Navy and Marine Corps.
    ``(d) A person who has been discharged honorably or under 
honorable conditions from the Army, Navy, Air Force or Marine 
Corps and who is receiving care and medical treatmentfrom the 
Public Health Service or the Department of Veterans Affairs may buy 
subsistence supplies and other supplies, except articles of uniform, at 
the prices at which like property is sold to members of the Navy and 
Marine Corps.
    ``(e) Under such conditions as the Secretary may prescribe, 
exterior articles of uniform may be sold to a person who has 
been discharged honorably or under honorable conditions from 
the Navy or Marine Corps, at the prices at which like articles 
are sold to members of the Navy or Marine Corps. This 
subsection does not modify sections 772 or 773 of this title.
    ``(f) Under regulations prescribed by the Secretary, 
payment for subsistence supplies shall be made in cash or by 
commercial credit.
    ``(g)(1) The Secretary may provide for the procurement and 
sale of stores designated by the Secretary to such civilian 
officers and employees of the United States, and such other 
persons, as the Secretary considers proper--
            ``(A) at military installations outside the United 
        States; and
            ``(B) subject to paragraph (2), at military 
        installations inside the United States where the 
        Secretary determines that it is impracticable for those 
        civilian officers, employees, and persons to obtain 
        such stores from commercial enterprises without 
        impairing the efficient operation of military 
        activities.
    ``(2) Sales to civilian officers and employees inside the 
United States may be made under paragraph (1) only to civilian 
officers and employees residing within military installations.
    ``(h) Appropriations for subsistence of the Navy or Marine 
Corps may be applied to the purchase of subsistence supplies 
for sale to members of the Navy and Marine Corps on active duty 
for the use of such members and their families.''.
    (2) The table of sections at the beginning of chapter 651 
of such title is amended by adding at the end the following:

``7606. Subsistence and other supplies: members of armed forces; 
          veterans; executive or military departments and employees; 
          prices.''.

    (b) Conforming Amendments for Other Armed Forces.--(1) 
Section 4621 of such title is amended--
            (A) by striking out ``The branch, office, or 
        officer designated by the Secretary of the Army'' in 
        subsection (a) and inserting in lieu thereof ``The 
        Secretary of the Army'';
            (B) by striking out ``The branch, office, or 
        officer designated by the Secretary'' both places it 
        appears in subsections (b) and (c) and inserting in 
        lieu thereof ``The Secretary''; and
            (C) by inserting before the period at the end of 
        subsection (f) the following: ``or by commercial 
        credit''.
    (2) Section 9621 of such title is amended--
            (A) by striking out ``The Air Force shall'' in 
        subsection (b) and inserting in lieu thereof ``The 
        Secretary shall''; and
            (B) by inserting before the period at the end of 
        subsection (f) the following: ``or by commercial 
        credit''.

SEC. 376. PERSONNEL SERVICES AND LOGISTICAL SUPPORT FOR CERTAIN 
                    ACTIVITIES HELD ON MILITARY INSTALLATIONS.

    Section 2544 of title 10, United States Code, is amended--
            (1) by redesignating subsection (g) as subsection 
        (h); and
            (2) by inserting after subsection (f) the following 
        new subsection:
    ``(g) In the case of a Boy Scout Jamboree held on a 
military installation, the Secretary of Defense may provide 
personnel services and logistical support at the military 
installation in addition to the support authorized under 
subsections (a) and (d).''.

SEC. 377. RETENTION OF MONETARY AWARDS.

    (a) Monetary Awards.--Chapter 155 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 2610. Competitions for excellence: acceptance of monetary awards

    ``(a) Acceptance Authorized.--The Secretary of Defense may 
accept a monetary award given to the Department of Defense by a 
nongovernmental entity as a result of the participation of the 
Department in a competition carried out to recognize excellence 
or innovation in providing services or administering programs.
    ``(b) Disposition of Awards.--A monetary award accepted 
under subsection (a) shall be credited to one or more 
nonappropriated fund accounts supporting morale, welfare, and 
recreation activities for the command, installation, or other 
activity that is recognized for the award. Amounts so credited 
may be expended only for such activities.
    ``(c) Incidental Expenses.--Subject to such limitations as 
may be provided in appropriation Acts, appropriations available 
to the Department of Defense may be used to pay incidental 
expenses incurred by the Department to participate in a 
competition described in subsection (a) or to accept a monetary 
award under this section.
    ``(d) Regulations and Reporting.--(1) The Secretary shall 
prescribe regulations to determine the disposition of monetary 
awards accepted under this section and the payment of 
incidental expenses under subsection (c).
    ``(2) At the end of each year, the Secretary shall submit 
to Congress a report for that year describing the disposition 
of monetary awards accepted under this section and the payment 
of incidental expenses under subsection (c).
    ``(e) Termination.--The authority of the Secretary under 
this section shall expire two years after the date of the 
enactment of the National Defense Authorization Act for Fiscal 
Year 1996.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2610. Competitions for excellence: acceptance of monetary awards.''.

SEC. 378. PROVISION OF EQUIPMENT AND FACILITIES TO ASSIST IN EMERGENCY 
                    RESPONSE ACTIONS.

    Section 372 of title 10, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Secretary of Defense''; and
            (2) by adding at the end the following new 
        subsection:
    ``(b) Emergencies Involving Chemical and Biological 
Agents.--(1) In addition to equipment and facilities described 
in subsection (a), the Secretary may provide an item referred 
to in paragraph (2) to a Federal, State, or local law 
enforcement or emergency response agency to prepare for or 
respond to an emergency involving chemical or biological agents 
if the Secretary determines that the item is not reasonably 
available from another source.
    ``(2) An item referred to in paragraph (1) is any material 
or expertise of the Department of Defense appropriate for use 
in preparing for or responding to an emergency involving 
chemical or biological agents, including the following:
            ``(A) Training facilities.
            ``(B) Sensors.
            ``(C) Protective clothing.
            ``(D) Antidotes.''.

SEC. 379. REPORT ON DEPARTMENT OF DEFENSE MILITARY AND CIVIL DEFENSE 
                    PREPAREDNESS TO RESPOND TO EMERGENCIES RESULTING 
                    FROM A CHEMICAL, BIOLOGICAL, RADIOLOGICAL, OR 
                    NUCLEAR ATTACK.

    (a) Report.--(1) Not later than March 1, 1996, the 
Secretary of Defense and the Secretary of Energy shall submit 
to Congress a joint report on the military and civil defense 
plans and programs of the Department of Defense to prepare for 
and respond to the effects of an emergency in the United States 
resulting from a chemical, biological, radiological, or nuclear 
attack on the United States (hereinafter in this section 
referred to as an ``attack-related civil defense emergency'').
    (2) The report shall be prepared in consultation with the 
Director of the Federal Emergency Management Agency.
    (b) Content of Report.--The report shall include the 
following:
            (1) A discussion of the military and civil defense 
        plans and programs of the Department of Defense for 
        preparing for and responding to an attack-related civil 
        defense emergency arising from an attack of a type for 
        which the Department of Defense has a primary 
        responsibility to respond.
            (2) A discussion of the military and civil defense 
        plans and programs of the Department of Defense for 
        preparing for and providing a response to an attack-
        related civil defense emergency arising from an attack 
        of a type for which the Department of Defense has 
        responsibility to provide a supporting response.
            (3) A description of any actions, and any 
        recommended legislation, that the Secretaries consider 
        necessary for improving the preparedness of the 
        Department of Defense to respond effectively to an 
        attack-related civil defense emergency.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    (a) Fiscal Year 1996.--The Armed Forces are authorized 
strengths for active duty personnel as of September 30, 1996, 
as follows:
            (1) The Army, 495,000, of which not more than 
        81,300 may be commissioned officers.
            (2) The Navy, 428,340, of which not more than 
        58,870 may be commissioned officers.
            (3) The Marine Corps, 174,000, of which not more 
        than 17,978 may be commissioned officers.
            (4) The Air Force, 388,200, of which not more than 
        75,928 may be commissioned officers.
    (b) Floor on End Strengths.--(1) Chapter 39 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 691. Permanent end strength levels to support two major regional 
                    contingencies

    ``(a) The end strengths specified in subsection (b) are the 
minimum strengths necessary to enable the armed forces to 
fulfill a national defense strategy calling for the United 
States to be able to successfully conduct two nearly 
simultaneous major regional contingencies.
    ``(b) Unless otherwise provided by law, the number of 
members of the armed forces (other than the Coast Guard) on 
active duty at the end of any fiscal year shall be not less 
than the following:
            ``(1) For the Army, 495,000.
            ``(2) For the Navy, 395,000.
            ``(3) For the Marine Corps, 174,000.
            ``(4) For the Air Force, 381,000.
    ``(c) No funds appropriated to the Department of Defense 
may be used to implement a reduction of the active duty end 
strength for any of the armed forces for any fiscal year below 
the level specified in subsection (b) unless the Secretary of 
Defense submits to Congress notice of the proposed lower end 
strength levels and a justification for those levels. No action 
may then be taken to implement such a reduction for that fiscal 
year until the end of the six-month period beginning on the 
date of the receipt of such notice by Congress.
    ``(d) For a fiscal year for which the active duty end 
strength authorized by law pursuant to section 115(a)(1)(A) of 
this title for any of the armed forces is identical to the 
number applicable to that armed force under subsection (b), the 
Secretary of Defense may reduce that number by not more than 
0.5 percent.
    ``(e) The number of members of the armed forces on active 
duty shall be counted for purposes of this section in the same 
manner as applies under section 115(a)(1) of this title.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``691. Permanent end strength levels to support two major regional 
          contingencies.''.

    (c) Active Component End Strength Flexibility.--Section 
115(c)(1) of title 10, United States Code, is amended by 
striking out ``0.5 percent'' and inserting in lieu thereof ``1 
percent''.

SEC. 402. TEMPORARY VARIATION IN DOPMA AUTHORIZED END STRENGTH 
                    LIMITATIONS FOR ACTIVE DUTY AIR FORCE AND NAVY 
                    OFFICERS IN CERTAIN GRADES.

    (a) Air Force Officers.--In the administration of the 
limitation under section 523(a)(1) of title 10, United States 
Code, for fiscal years 1996 and 1997, the numbers applicable to 
officers of the Air Force serving on active duty in the grades 
of major, lieutenant colonel, and colonel shall be the numbers 
set forth for that fiscal year in the following table (rather 
than the numbers determined in accordance with the table in 
that section):

------------------------------------------------------------------------
                                   Number of officers who may be serving
                                      on active duty in the grade of:   
           Fiscal year            --------------------------------------
                                                 Lieutenant             
                                      Major       colonel      Colonel  
------------------------------------------------------------------------
1996.............................       15,566        9,876        3,609
1997.............................       15,645        9,913        3,627
------------------------------------------------------------------------

    (b) Navy Officers.--In the administration of the limitation 
under section 523(a)(2) of title 10, United States Code, for 
fiscal years 1996 and 1997, the numbers applicable to officers 
of the Navy serving on active duty in the grades of lieutenant 
commander, commander, and captain shall be the numbers set 
forth for that fiscal year in the following table (rather than 
the numbers determined in accordance with the table in that 
section):

------------------------------------------------------------------------
                                   Number of officers who may be serving
                                      on active duty in the grade of:   
           Fiscal year            --------------------------------------
                                    Lieutenant                          
                                    commander    Commander     Captain  
------------------------------------------------------------------------
1996.............................       11,924        7,390        3,234
1997.............................       11,732        7,297        3,188
------------------------------------------------------------------------

SEC. 403. CERTAIN GENERAL AND FLAG OFFICERS AWAITING RETIREMENT NOT TO 
                    BE COUNTED.

    (a) Distribution of Officers on Active Duty in General and 
Flag Officer Grades.--Section 525 of title 10, United States 
Code, is amended by adding at the end the following new 
subsection:
    ``(d) An officer continuing to hold the grade of general or 
admiral under section 601(b)(4) of this title after relief from 
the position of Chairman of the Joint Chiefs of Staff, Chief of 
Staff of the Army, Chief of Naval Operations, Chief of Staff of 
the Air Force, or Commandant of the Marine Corps shall not be 
counted for purposes of this section.''.
    (b) Number of Officers on Active Duty in Grade of General 
or Admiral.--Section 528(b) of such title is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2) An officer continuing to hold the grade of general or 
admiral under section 601(b)(4) of this title after relief 
fromthe position of Chairman of the Joint Chiefs of Staff, Chief of 
Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air 
Force, or Commandant of the Marine Corps shall not be counted for 
purposes of this section.''.
    (c) Clarification.--Section 601(b) of such title is 
amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``of importance and responsibility 
        designated'' and inserting in lieu thereof ``designated 
        under subsection (a) or by law'';
            (2) in paragraph (1), by striking out ``of 
        importance and responsibility'';
            (3) in paragraph (2), by striking out 
        ``designating'' and inserting in lieu thereof 
        ``designated under subsection (a) or by law''; and
            (4) in paragraph (4), by inserting ``under 
        subsection (a) or by law'' after ``designated''.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) Fiscal Year 1996.--The Armed Forces are authorized 
strengths for Selected Reserve personnel of the reserve 
components as of September 30, 1996, as follows:
            (1) The Army National Guard of the United States, 
        373,000.
            (2) The Army Reserve, 230,000.
            (3) The Naval Reserve, 98,894.
            (4) The Marine Corps Reserve, 42,274.
            (5) The Air National Guard of the United States, 
        112,707.
            (6) The Air Force Reserve, 73,969.
            (7) The Coast Guard Reserve, 8,000.
    (b) Waiver Authority.--The Secretary of Defense may vary 
the end strength authorized by subsection (a) by not more than 
2 percent.
    (c) Adjustments.--The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve 
component for a fiscal year shall be proportionately reduced 
by--
            (1) the total authorized strength of units 
        organized to serve as units of the Selected Reserve of 
        such component which are on active duty (other than for 
        training) at the end of the fiscal year, and
            (2) the total number of individual members not in 
        units organized to serve as units of the Selected 
        Reserve of such component who are on active duty (other 
        than for training or for unsatisfactory participation 
        in training) without their consent at the end of the 
        fiscal year.
Whenever such units or such individual members are released 
from active duty during any fiscal year, the end strength 
prescribed for such fiscal year for the Selected Reserve of 
such reserve component shall be proportionately increased by 
the total authorized strengths of such units and by the total 
number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
                    RESERVES.

    Within the end strengths prescribed in section 411(a), the 
reserve components of the Armed Forces are authorized, as of 
September 30, 1996, the following number of Reserves to be 
serving on full-time active duty or full-time duty, in the case 
of members of the National Guard, for the purpose of 
organizing, administering, recruiting, instructing, or training 
the reserve components:
            (1) The Army National Guard of the United States, 
        23,390.
            (2) The Army Reserve, 11,575.
            (3) The Naval Reserve, 17,587.
            (4) The Marine Corps Reserve, 2,559.
            (5) The Air National Guard of the United States, 
        10,066.
            (6) The Air Force Reserve, 628.

SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT PERSONNEL ASSIGNED IN 
                    SUPPORT OF RESERVE COMPONENT TRAINING.

    Section 414(c) of the National Defense Authorization Act 
for Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 
12001 note) is amended--
            (1) by inserting ``(1)'' before ``The Secretary''; 
        and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The Secretary of Defense may count toward the number 
of active component personnel required under paragraph (1) to 
be assigned to serve as advisers under the program under this 
section any active component personnel who are assigned to an 
active component unit (A) that was established principally for 
the purpose of providing dedicated training support to reserve 
component units, and (B) the primary mission of which is to 
provide such dedicated training support.''.

SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES AUTHORIZED TO 
                    SERVE ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

    (a) Officers.--The table in section 12011(a) of title 10, 
United States Code, is amended to read as follows:
      

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps 
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,219   1,071     643      140  
Lieutenant Colonel or Commander.....    1,524     520     672       90  
Colonel or Navy Captain.............      412     188     274     30''. 
------------------------------------------------------------------------

    (b) Senior Enlisted Members.--The table in section 12012(a) 
of such title is amended to read as follows:
      

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps 
------------------------------------------------------------------------
E-9.................................     603     202      366       20  
E-8.................................   2,585     429      890     94''. 
------------------------------------------------------------------------

SEC. 415. RESERVES ON ACTIVE DUTY IN SUPPORT OF COOPERATIVE THREAT 
                    REDUCTION PROGRAMS NOT TO BE COUNTED.

    Section 115(d) of title 10, United States Code, is amended 
by adding at the end the following:
            ``(8) Members of the Selected Reserve of the Ready 
        Reserve on active duty for more that 180 days to 
        support programs described in section 1203(b) of the 
        Cooperative Threat Reduction Act of 1993 (title XII of 
        Public Law 103-160; 22 U.S.C. 5952(b)).''.

SEC. 416. RESERVES ON ACTIVE DUTY FOR MILITARY-TO-MILITARY CONTACTS AND 
                    COMPARABLE ACTIVITIES NOT TO BE COUNTED.

    Section 168 of title 10, United States Code, is amended--
            (1) by redesignating subsection (f) as subsection 
        (g); and
            (2) by inserting after subsection (e) the following 
        new subsection (f):
    ``(f) Active Duty End Strengths.--(1) A member of a reserve 
component referred to in paragraph (2) shall not be counted for 
purposes of the following personnel strength limitations:
            ``(A) The end strength for active-duty personnel 
        authorized pursuant to section 115(a)(1) of this title 
        for the fiscal year in which the member carries out the 
        activities referred to in paragraph (2).
            ``(B) The authorized daily average for members in 
        pay grades E-8 and E-9 under section 517 of this title 
        for the calendar year in which the member carries out 
        such activities.
            ``(C) The authorized strengths for commissioned 
        officers under section 523 of this title for the fiscal 
        year in which the member carries out such activities.
    ``(2) A member of a reserve component referred to in 
paragraph (1) is any member on active duty under an order to 
active duty for 180 days or more who is engaged in activities 
authorized under this section.''.

              Subtitle C--Military Training Student Loads

SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

    (a) In General.--For fiscal year 1996, the components of 
the Armed Forces are authorized average military training loads 
as follows:
            (1) The Army, 75,013.
            (2) The Navy, 44,238.
            (3) The Marine Corps, 26,095.
            (4) The Air Force, 33,232.
    (b) Scope.--The average military training student loads 
authorized for an armed force under subsection (a) apply to the 
active and reserve components of that armed force.
    (c) Adjustments.--The average military training student 
loads authorized in subsection (a) shall be adjusted consistent 
with the end strengths authorized in subtitles A and B. The 
Secretary of Defense shall prescribe the manner in which such 
adjustments shall be apportioned.

              Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the 
Department of Defense for military personnel for fiscal year 
1996 a total of $69,191,008,000. The authorization in the 
preceding sentence supersedes any other authorization of 
appropriations (definite or indefinite) for such purpose for 
fiscal year 1996.

SEC. 432. AUTHORIZATION FOR INCREASE IN ACTIVE-DUTY END STRENGTHS.

    (a) Authorization.--There is hereby authorized to be 
appropriated to the Department of Defense for fiscal year 1996 
for military personnel the sum of $112,000,000. Any amount 
appropriated pursuant to this section shall be allocated, in 
such manner as the Secretary of Defense prescribes, among 
appropriations for active-component military personnel for that 
fiscal year and shall be available only to increase the number 
of members of the Armed Forces on active duty during that 
fiscal year (compared to the number of members that would be on 
active duty but for such appropriation).
    (b) Effect on End Strengths.--The end-strength 
authorizations in section 401 shall each be deemed to be 
increased by such number as necessary to take account of 
additional members of the Armed Forces authorized by the 
Secretary of Defense pursuant to subsection (a).

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. JOINT OFFICER MANAGEMENT.

    (a) Critical Joint Duty Assignment Positions.--Section 
661(d)(2)(A) of title 10, United States Code, is amended by 
striking out ``1,000'' and inserting in lieu thereof ``800''.
    (b) Additional Qualifying Joint Service.--Section 664 of 
such title is amended by adding at the end the following:
    ``(i) Joint Duty Credit for Certain Joint Task Force 
Assignments.--(1) In the case of an officer who completes 
service in a qualifying temporary joint task force assignment, 
the Secretary of Defense, with the advice of the Chairman of 
the Joint Chiefs of Staff, may (subject to the criteria 
prescribed under paragraph (4)) grant the officer--
            ``(A) credit for having completed a full tour of 
        duty in a joint duty assignment; or
            ``(B) credit countable for determining cumulative 
        service in joint duty assignments.
    ``(2)(A) For purposes of paragraph (1), a qualifying 
temporary joint task force assignment of an officer is a 
temporary assignment, any part of which is performed by the 
officer on or after the date of the enactment of this 
subsection--
            ``(i) to the headquarters staff of a United States 
        joint task force that is part of a unified command or 
        the United States element of the headquarters staff of 
        a multinational force; and
            ``(ii) with respect to which the Secretary of 
        Defense determines that service of the officer in that 
        assignment is equivalent to that which would be gained 
        by the officer in a joint duty assignment.
    ``(B) An officer may not be granted credit under this 
subsection unless the officer is recommended for such credit by 
the Chairman of the Joint Chiefs of Staff.
    ``(3) Credit under paragraph (1) (including a determination 
under paragraph (2)(A)(ii) and a recommendation under paragraph 
(2)(B) with respect to such credit) may be granted only on a 
case-by-case basis in the case of an individual officer.
    ``(4) The Secretary of Defense shall prescribe by 
regulation criteria for determining whether an officer may be 
granted credit under paragraph (1) with respect to service in a 
qualifying temporary joint task force assignment. The criteria 
shall apply uniformly among the armed forces and shall include 
the following requirements:
            ``(A) For an officer to be credited as having 
        completed a full tour of duty in a joint duty 
        assignment, the length of the officer's service in the 
        qualifying temporary joint task force assignment must 
        meet the requirements of subsection (a) or (c).
            ``(B) For an officer to be credited with service 
        for purposes of determining cumulative service in joint 
        duty assignments, the officer must serve at least 90 
        consecutive days in the qualifying temporary joint task 
        force assignment.
            ``(C) The service must be performed in support of a 
        mission that is directed by the President or that is 
        assigned by the President to United States forces in 
        the joint task force involved.
            ``(D) The joint task force must be constituted or 
        designated by the Secretary of Defense or by the 
        commander of a combatant command or of another force.
            ``(E) The joint task force must conduct combat or 
        combat-related operations in a unified action under 
        joint or multinational command and control.
    ``(5) Officers for whom joint duty credit is granted 
pursuant to this subsection may not be taken into account for 
the purposes of any of the following provisions of this title: 
section 661(d)(1), section 662(a)(3), section 662(b), 
subsection (a) of this section, and paragraphs (7), (8), (9), 
(11), and (12) of section 667.
    ``(6) In the case of an officer credited with having 
completed a full tour of duty in a joint duty assignment 
pursuant to this subsection, the Secretary of Defense may waive 
the requirement in paragraph (1)(B) of section 661(c) of this 
title that the tour of duty in a joint duty assignment be 
performed after the officer completes a program of education 
referred to in paragraph (1)(A) of that section. The provisions 
of subparagraphs (C) and (D) of section 661(c)(3) of this title 
shall apply to such a waiver in the same manner as to a waiver 
under subparagraph (A) of that section.''.
    (c) Information in Annual Report.--Section 667 of such 
title is amended by striking out paragraph (16) and inserting 
after paragraph (15) the following new paragraph (16):
            ``(16) The number of officers granted credit for 
        service in joint duty assignments under section 664(i) 
        of this title and--
                    ``(A) of those officers--
                            ``(i) the number of officers 
                        credited with having completed a tour 
                        of duty in a joint duty assignment; and
                            ``(ii) the number of officers 
                        granted credit for purposes of 
                        determining cumulative service in joint 
                        duty assignments; and
                    ``(B) the identity of each operation for 
                which an officer has been granted credit 
                pursuant to section 664(i) of this title and a 
                brief description of the mission of the 
                operation.''.
    (d) Applicability of Limitation on Waiver Authority.--
Section 661(c)(3) of such title is amended--
            (1) in the third sentence of subparagraph (D), by 
        striking out ``The total number'' and inserting in lieu 
        thereof ``In the case of officers in grades below 
        brigadier general and rear admiral (lower half), the 
        total number''; and
            (2) by adding at the end the following new 
        subparagraph:
    ``(E) There may not be more than 32 general and flag 
officers on active duty at the same time who were selected for 
the joint specialty while holding a general or flag officer 
grade and for whom a waiver was granted under this 
subparagraph.''.
    (e) Length of Second Joint Tour.--Section 664 of such title 
is amended--
            (1) in subsection (e)(2), by inserting after 
        subparagraph (B) the following:
            ``(C) Service described in subsection (f)(6), 
        except that no more than 10 percent of all joint duty 
        assignments shown on the list published pursuant to 
        section 668(b)(2)(A) of this title may be so excluded 
        in any year.''; and
            (2) in subsection (f)--
                    (A) in the matter preceding paragraph (1), 
                by striking out ``completion of--'' and 
                inserting in lieu thereof ``completion of any 
                of the following:'';
                    (B) by striking out ``a'' at the beginning 
                of paragraphs (1), (2), (4), and (5) and 
                inserting in lieu thereof ``A'';
                    (C) by striking out ``cumulative'' in 
                paragraph (3) and inserting in lieu thereof 
                ``Cumulative'';
                    (D) by striking out the semicolon at the 
                end of paragraphs (1), (2), and (3) and ``; 
                or'' at the end of paragraph (4) and inserting 
                in lieu thereof a period; and
                    (E) by adding at the end the following:
            ``(6) A second joint duty assignment that is less 
        than the period required under subsection (a), but not 
        less than two years, without regard to whether a waiver 
        was granted for such assignment under subsection 
        (b).''.
    (f) Technical Amendment.--Section 664(e)(1) of such title 
is amended by striking out ``(after fiscal year 1990)''.

SEC. 502. RETIRED GRADE FOR OFFICERS IN GRADES ABOVE MAJOR GENERAL AND 
                    REAR ADMIRAL.

    (a) Applicability of Time-in-Grade Requirements.--Section 
1370 of title 10, United States Code, is amended--
            (1) in subsection (a)(2)(A), by striking out ``and 
        below lieutenant general or vice admiral''; and
            (2) in the first sentence of subsection (d)(2)(B), 
        as added effective October 1, 1996, by section 1641 of 
        the Reserve Officer Personnel Management Act (title XVI 
        of Public Law 103-337; 108 Stat. 2968), by striking out 
        ``and below lieutenant general or vice admiral''.
    (b) Retirement in Highest Grade Upon Certification of 
Satisfactory Service.--Subsection (c) of such section is 
amended to read as follows:
    ``(c) Officers in O-9 and O-10 Grades.--(1) An officer who 
is serving in or has served in the grade of general or admiral 
or lieutenant general or vice admiral may be retired in that 
grade under subsection (a) only after the Secretary of Defense 
certifies in writing to the President and Congress that the 
officer served on active duty satisfactorily in that grade.
    ``(2) In the case of an officer covered by paragraph (1), 
the three-year service-in-grade requirement in paragraph (2)(A) 
of subsection (a) may not be reduced or waived under that 
subsection--
            ``(A) while the officer is under investigation for 
        alleged misconduct; or
            ``(B) while there is pending the disposition of an 
        adverse personnel action against the officer for 
        alleged misconduct.''.
    (c) Repeal of Superseded Provisions.--Sections 3962(a), 
5034, 5043(c), and 8962(a) of such title are repealed.
    (d) Technical and Clerical Amendments.--(1) Sections 
3962(b) and 8962(b) of such title are amended by striking out 
``(b) Upon'' and inserting in lieu thereof ``Upon''.
    (2) The table of sections at the beginning of chapter 505 
of such title is amended by striking out the item relating to 
section 5034.
    (e) Effective Date for Amendment to Provision Taking Effect 
in 1996.--The amendment made by subsection (a)(2) shall take 
effect on October 1, 1996, immediately after subsection (d) of 
section 1370 of title 10, United States Code, takes effect 
under section 1691(b)(1) of the Reserve Officer Personnel 
Management Act (108 Stat. 3026).
    (f) Preservation of Applicability of Limitation.--Section 
1370(a)(2)(C) of title 10, United States Code, is amended by 
striking out ``The number of officers in an armed force in a 
grade'' and inserting in lieu thereof ``In the case of a grade 
below the grade of lieutenant general or vice admiral, the 
number of members of one of the armed forces in that grade''.
    (g) Stylistic Amendments.--Section 1370 of title 10, United 
States Code, is further amended--
            (1) in subsection (a), by striking out ``(a)(1)'' 
        and inserting in lieu thereof ``(a) Rule for Retirement 
        in Highest Grade Held Satisfactorily.--(1)'';
            (2) in subsection (b), by inserting ``Retirement in 
        Next Lower Grade.--'' after ``(b)''; and
            (3) in subsection (d), as added effective October 
        1, 1996, by section 1641 of the Reserve Officer 
        Personnel Management Act (title XVI of Public Law 103-
        337; 108 Stat. 2968), by striking out ``(d)(1)'' and 
        inserting in lieu thereof ``(d) Reserve Officers.--
        (1)''.

SEC. 503. WEARING OF INSIGNIA FOR HIGHER GRADE BEFORE PROMOTION.

    (a) Authority and Limitations.--(1) Chapter 45 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 777. Wearing of insignia of higher grade before promotion 
                    (frocking): authority; restrictions

    ``(a) Authority.--An officer who has been selected for 
promotion to the next higher grade may be authorized, under 
regulations and policies of the Department of Defense and 
subject to subsection (b), to wear the insignia for that next 
higher grade. An officer who is so authorized to wear the 
insignia of the next higher grade is said to be `frocked' to 
that grade.
    ``(b) Restrictions.--An officer may not be authorized to 
wear the insignia for a grade as described in subsection (a) 
unless--
            ``(1) the Senate has given its advice and consent 
        to the appointment of the officer to that grade; and
            ``(2) the officer is serving in, or has received 
        orders to serve in, a position for which that grade is 
        authorized.
    ``(c) Benefits Not To Be Construed as Accruing.--(1) 
Authority provided to an officer as described in subsection (a) 
to wear the insignia of the next higher grade may not be 
construed as conferring authority for that officer to--
            ``(A) be paid the rate of pay provided for an 
        officer in that grade having the same number of years 
        of service as that officer; or
            ``(B) assume any legal authority associated with 
        that grade.
    ``(2) The period for which an officer wears the insignia of 
the next higher grade under such authority may not be taken 
into account for any of the following purposes:
            ``(A) Seniority in that grade.
            ``(B) Time of service in that grade.
    ``(d) Limitation on Number of Officers Frocked to Specified 
Grades.--(1) The total number of colonels and Navy captains on 
the active-duty list who are authorized as described in 
subsection (a) to wear the insignia for the grade of brigadier 
general or rear admiral (lower half), as the case may be, may 
not exceed the following:
            ``(A) During fiscal years 1996 and 1997, 75.
            ``(B) During fiscal year 1998, 55.
            ``(C) After fiscal year 1998, 35.
    ``(2) The number of officers of an armed force on the 
active-duty list who are authorized as described in subsection 
(a) to wear the insignia for a grade to which a limitation on 
total number applies under section 523(a) of this title for a 
fiscal year may not exceed 1 percent of the total number 
provided for the officers in that grade in that armed force in 
the administration of the limitation under that section for 
that fiscal year.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``777. Wearing of insignia of higher grade before promotion (frocking): 
          authority; restrictions.''.

    (b) Temporary Variation of Limitations on Numbers of 
Frocked Officers.--In the administration of section 777(d)(2) 
of title 10, United States Code (as added by subsection (a)), 
the percent limitation applied under that section for fiscal 
year 1996 shall be 2 percent (instead of 1 percent).
    (c) Report.--Not later than September 1, 1996, the 
Secretary of Defense shall submit to Congress a report 
providing the assessment of the Secretary on the practice, 
known as ``frocking'', of authorizing an officer who has been 
selected for promotion to the next higher grade to wear the 
insignia for that next higher grade. The report shall include 
the Secretary's assessment of the appropriate number, if any, 
of colonels and Navy captains to be eligible under section 
777(d)(1) of title 10, United States Code (as added by 
subsection (a)), to wear the insignia for the grade of 
brigadier general or rear admiral (lower half).

SEC. 504. AUTHORITY TO EXTEND TRANSITION PERIOD FOR OFFICERS SELECTED 
                    FOR EARLY RETIREMENT.

    (a) Selective Retirement of Warrant Officers.--Section 581 
of title 10, United States Code, is amended by adding at the 
end the following new subsection:
    ``(e) The Secretary concerned may defer for not more than 
90 days the retirement of an officer otherwise approved for 
early retirement under this section in order to prevent a 
personal hardship to the officer or for other humanitarian 
reasons. Any such deferral shall be made on a case-by-case 
basis considering the circumstances of the case of the 
particular officer concerned. The authority of the Secretary to 
grant such a deferral may not be delegated.''.
    (b) Selective Early Retirement of Active-Duty Officers.--
Section 638(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) The Secretary concerned may defer for not more than 
90 days the retirement of an officer otherwise approved for 
early retirement under this section or section 638a of this 
title in order to prevent a personal hardship to the officer or 
for other humanitarian reasons. Any such deferral shall be made 
on a case-by-case basis considering the circumstances of the 
case of the particular officer concerned. The authority of the 
Secretary to grant such a deferral may not be delegated.''.

SEC. 505. ARMY OFFICER MANNING LEVELS.

    (a) In General.--(1) Chapter 331 of title 10, United States 
Code, is amended by inserting after the table of sections the 
following new section:

``Sec. 3201. Officers on active duty: minimum strength based on 
                    requirements

    ``(a) The Secretary of the Army shall ensure that 
(beginning with fiscal year 1999) the strength at the end of 
each fiscal year of officers on active duty is sufficient to 
enable the Army to meet at least that percentage of the 
programmed manpower structure for officers for the active 
component of the Army that is provided for in the most recent 
Defense Planning Guidance issued by the Secretary of Defense.
    ``(b) The number of officers on active duty shall be 
counted for purposes of this section in the same manner as 
applies under section 115(a)(1) of this title.
    ``(c) In this section:
            ``(1) The term `programmed manpower structure' 
        means the aggregation of billets describing the full 
        manpower requirements for units and organizations in 
        the programmed force structure.
            ``(2) The term `programmed force structure' means 
        the set of units and organizations that exist in the 
        current year and that is planned to exist in each 
        future year under the then-current Future-Years Defense 
        Program.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after ``Sec.'' the following new item:

``3201. Officers on active duty: minimum strength based on 
          requirements.''.

    (b) Assistance in Accomplishing Requirement.--The Secretary 
of Defense shall provide to the Army sufficient personnel and 
financial resources to enable the Army to meet the requirement 
specified in section 3201 of title 10, United States Code, as 
added by subsection (a).

SEC. 506. AUTHORITY FOR MEDICAL DEPARTMENT OFFICERS OTHER THAN 
                    PHYSICIANS TO BE APPOINTED AS SURGEON GENERAL.

    (a) Surgeon General of the Army.--The third sentence of 
section 3036(b) of title 10, United States Code, is amended by 
inserting after ``The Surgeon General'' the following: ``may be 
appointed from officers in any corps of the Army Medical 
Department and''.
    (b) Surgeon General of the Navy.--Section 5137 of such 
title is amended--
            (1) in the first sentence of subsection (a), by 
        striking out ``in the Medical Corps'' and inserting in 
        lieu thereof ``in any corps of the Navy Medical 
        Department''; and
            (2) in subsection (b), by striking out ``in the 
        Medical Corps'' and inserting in lieu thereof ``who is 
        qualified to be the Chief of the Bureau of Medicine and 
        Surgery''.
    (c) Surgeon General of the Air Force.--The first sentence 
of section 8036 of such title is amended by striking out 
``designated as medical officers under section 8067(a) of this 
title'' and inserting in lieu thereof ``in the Air Force 
medical department''.

SEC. 507. DEPUTY JUDGE ADVOCATE GENERAL OF THE AIR FORCE.

    (a) Tenure and Grade of Deputy Judge Advocate General.--
Section 8037(d)(1) of such title is amended--
            (1) in the second sentence, by striking out ``two 
        years'' and inserting in lieu thereof ``four years''; 
        and
            (2) by striking out the last sentence and inserting 
        in lieu thereof the following: ``An officer appointed 
        as Deputy Judge Advocate General who holds a lower 
        regular grade shall be appointed in the regular grade 
        of major general.''.
    (b) Effective Date.--The amendments made by subsection (a) 
apply to any appointment to the position of Deputy Judge 
Advocate General of the Air Force that is made after the date 
of the enactment of this Act.

SEC. 508. AUTHORITY FOR TEMPORARY PROMOTIONS FOR CERTAIN NAVY 
                    LIEUTENANTS WITH CRITICAL SKILLS.

    (a) Extension of Authority.--Subsection (f) of section 5721 
of title 10, United States Code, is amended by striking out 
``September 30, 1995'' and inserting in lieu thereof 
``September 30, 1996''.
    (b) Limitation.--Such section is further amended--
            (1) by redesignating subsection (f), as amended by 
        subsection (a), as subsection (g); and
            (2) by inserting after subsection (e) the following 
        new subsection (f):
    ``(f) Limitation on Number of Eligible Positions.--(1) An 
appointment under this section may only be made for service in 
a position designated by the Secretary of the Navy for purposes 
of this section. The number of positions so designated may not 
exceed 325.
    ``(2) Whenever the Secretary makes a change to the 
positions designated under paragraph (1), the Secretary shall 
submit notice of the change in writing to Congress.''.
    (c) Report.--Not later than April 1, 1996, the Secretary of 
Defense shall submit to Congress a report providing the 
Secretary's assessment of that continuing need for the 
promotion authority under section 5721 of title 10, United 
States Code. The Secretary shall include in the report the 
following:
            (1) The nature and grade structure of the positions 
        for which such authority has been used.
            (2) The cause or causes of the reported chronic 
        shortages of qualified personnel in the required grade 
        to fill the positions specified under paragraph (1).
            (3) The reasons for the perceived inadequacy of the 
        officer promotion system (including ``below-the-zone'' 
        selections) to provide sufficient officers in the 
        required grade to fill those positions.
            (4) The extent to which a bonus program or some 
        other program would be a more appropriate means of 
        resolving the reported chronic shortages in engineering 
        positions.
    (d) Clerical Amendments.--Section 5721 of title 10, United 
States Code, is amended as follows:
            (1) Subsection (a) is amended by inserting 
        ``Promotion Authority for Certain Officer With Critical 
        Skills.--'' after ``(a)''.
            (2) Subsection (b) is amended by inserting ``Status 
        of Officers Appointed.--'' after ``(b)''.
            (3) Subsection (c) is amended by inserting ``Board 
        Recommendation Required.--'' after ``(c)''.
            (4) Subsection (d) is amended by inserting 
        ``Acceptance and Effective Date of Appointment.--'' 
        after ``(d)''.
            (5) Subsection (e) is amended by inserting 
        ``Termination of Appointment.--'' after ``(e)''.
            (6) Subsection (g), as redesignated by subsection 
        (b)(1), is amended by inserting ``Termination of 
        Appointment Authority.--'' after ``(g)''.
    (e) Effective Date.--Subsection (f) of section 5721 of 
title 10, United States Code, as added by subsection (b)(2), 
shall take effect at the end of the 30-day period beginning on 
the date of the enactment of this Act and shall apply to any 
appointment under that section after the end of such period.

SEC. 509. RETIREMENT FOR YEARS OF SERVICE OF DIRECTORS OF ADMISSIONS OF 
                    MILITARY AND AIR FORCE ACADEMIES.

    (a) Military Academy.--(1) Section 3920 of title 10, United 
States Code, is amended to read as follows:

``Sec. 3920. More than thirty years: permanent professors and the 
                    Director of Admissions of the United States 
                    Military Academy

    ``(a) The Secretary of the Army may retire an officer 
specified in subsection (b) who has more than 30 years of 
service as a commissioned officer.
    ``(b) Subsection (a) applies in the case of the following 
officers:
            ``(1) Any permanent professor of the United States 
        Military Academy.
            ``(2) The Director of Admissions of the United 
        States Military Academy.''.
    (2) The item relating to such section in the table of 
sections at the beginning of chapter 367 of such title is 
amended to read as follows:

``3920. More than thirty years: permanent professors and the Director of 
          Admissions of the United States Military Academy.''.

    (b) Air Force Academy.--(1) Section 8920 of title 10, 
United States Code, is amended to read as follows:

``Sec. 8920. More than thirty years: permanent professors and the 
                    Director of Admissions of the United States Air 
                    Force Academy

    ``(a) The Secretary of the Air Force may retire an officer 
specified in subsection (b) who has more than 30 years of 
service as a commissioned officer.
    ``(b) Subsection (a) applies in the case of the following 
officers:
            ``(1) Any permanent professor of the United States 
        Air Force Academy.
            ``(2) The Director of Admissions of the United 
        States Air Force Academy.''.
    (2) The item relating to such section in the table of 
sections at the beginning of chapter 867 of such title is 
amended to read as follows:

``8920. More than thirty years: permanent professors and the Director of 
          Admissions of the United States Air Force Academy.''.

           Subtitle B--Matters Relating to Reserve Components

SEC. 511. EXTENSION OF CERTAIN RESERVE OFFICER MANAGEMENT AUTHORITIES.

    (a) Grade Determination Authority for Certain Reserve 
Medical Officers.--Sections 3359(b) and 8359(b) of title 10, 
United States Code, are each amended by striking out 
``September 30, 1995'' and inserting in lieu thereof 
``September 30, 1996''.
    (b) Promotion Authority for Certain Reserve Officers 
Serving on Active Duty.--Sections 3380(d) and 8380(d) of title 
10, United States Code, are each amended by striking out 
``September 30, 1995'' and inserting in lieu thereof 
``September 30, 1996''.
    (c) Years of Service for Mandatory Transfer to the Retired 
Reserve.--Section 1016(d) of the Department of Defense 
Authorization Act, 1984 (10 U.S.C. 3360) is amended by striking 
out ``September 30, 1995'' and inserting in lieu thereof 
``September 30, 1996''.

SEC. 512. MOBILIZATION INCOME INSURANCE PROGRAM FOR MEMBERS OF READY 
                    RESERVE.

    (a) Establishment of Program.--(1) Subtitle E of title 10, 
United States Code, is amended by inserting after chapter 1213 
the following new chapter:

      ``CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE

``Sec.
``12521. Definitions.
``12522. Establishment of insurance program.
``12523. Risk insured.
``12524. Enrollment and election of benefits.
``12525. Benefit amounts.
``12526. Premiums.
``12527. Payment of premiums.
``12528. Reserve Mobilization Income Insurance Fund.
``12529. Board of Actuaries.
``12530. Payment of benefits.
``12531. Purchase of insurance.
``12532. Termination for nonpayment of premiums; forfeiture.

``Sec. 12521. Definitions

    ``In this chapter:
            ``(1) The term `insurance program' means the Ready 
        Reserve Mobilization Income Insurance Program 
        established under section 12522 of this title.
            ``(2) The term `covered service' means active duty 
        performed by a member of a reserve component under an 
        order to active duty for a period of more than 30 days 
        which specifies that the member's service--
                    ``(A) is in support of an operational 
                mission for which members of the reserve 
                components have been ordered to active duty 
                without their consent; or
                    ``(B) is in support of forces activated 
                during a period of war declared by Congress or 
                a period of national emergency declared by the 
                President or Congress.
            ``(3) The term `insured member' means a member of 
        the Ready Reserve who is enrolled for coverage under 
        the insurance program in accordance with section 12524 
        of this title.
            ``(4) The term `Secretary' means the Secretary of 
        Defense.
            ``(5) The term `Department' means the Department of 
        Defense.
            ``(6) The term `Board of Actuaries' means the 
        Department of Defense Education Benefits Board of 
        Actuaries referred to in section 2006(e)(1) of this 
        title.
            ``(7) The term `Fund' means the Reserve 
        Mobilization Income Insurance Fund established by 
        section 12528(a) of this title.

``Sec. 12522. Establishment of insurance program

    ``(a) Establishment.--The Secretary shall establish for 
members of the Ready Reserve (including the Coast Guard 
Reserve) an insurance program to be known as the `Ready Reserve 
Mobilization Income Insurance Program'.
    ``(b) Administration.--The insurance program shall be 
administered by the Secretary. The Secretary may prescribe in 
regulations such rules, procedures, and policies as the 
Secretary considers necessary or appropriate to carry out the 
insurance program.
    ``(c) Agreement With Secretary of Transportation.--The 
Secretary and the Secretary of Transportation shall enter into 
an agreement with respect to the administration of the 
insurance program for the Coast Guard Reserve.

``Sec. 12523. Risk insured

    ``(a) In General.--The insurance program shall insure 
members of the Ready Reserve against the risk of being ordered 
into covered service.
    ``(b) Entitlement to Benefits.--(1) An insured member 
ordered into covered service shall be entitled to payment of a 
benefit for each month (and fraction thereof) of covered 
service that exceeds 30 days of covered service, except that no 
member may be paid under the insurance program for more than 12 
months of covered service served during any period of 18 
consecutive months.
    ``(2) Payment shall be based solely on the insured status 
of a member and on the period of covered service served by the 
member. Proof of loss of income or of expenses incurred as a 
result of covered service may not be required.

``Sec. 12524. Enrollment and election of benefits

    ``(a) Enrollment.--(1) Except as provided in subsection 
(f), upon first becoming a member of the Ready Reserve, a 
member shall be automatically enrolled for coverage under the 
insurance program. An automatic enrollment of a member shall be 
void if within 60 days after first becoming a member of the 
Ready Reserve the member declines insurance under the program 
in accordance with the regulations prescribed by the Secretary.
    ``(2) Promptly after the insurance program is established, 
the Secretary shall offer to members of the reserve 
componentswho are then members of the Ready Reserve (other than members 
ineligible under subsection (f)) an opportunity to enroll for coverage 
under the insurance program. A member who fails to enroll within 60 
days after being offered the opportunity shall be considered as having 
declined to be insured under the program.
    ``(3) A member of the Ready Reserve ineligible to enroll 
under subsection (f) shall be afforded an opportunity to enroll 
upon being released from active duty in accordance with 
regulations prescribed by the Secretary if the member has not 
previously had the opportunity to be enrolled under paragraph 
(1) or (2). A member who fails to enroll within 60 days after 
being afforded that opportunity shall be considered as having 
declined to be insured under the program.
    ``(b) Election of Benefit Amount.--The amount of a member's 
monthly benefit under an enrollment shall be the basic benefit 
under subsection (a) of section 12525 of this title unless the 
member elects a different benefit under subsection (b) of such 
section within 60 days after first becoming a member of the 
Ready Reserve or within 60 days after being offered the 
opportunity to enroll, as the case may be.
    ``(c) Elections Irrevocable.--(1) An election to decline 
insurance pursuant to paragraph (1) or (2) of subsection (a) is 
irrevocable.
    ``(2) The amount of coverage may not be increased after 
enrollment.
    ``(d) Election To Terminate.--A member may terminate an 
enrollment at any time.
    ``(e) Information To Be Furnished.--The Secretary shall 
ensure that members referred to in subsection (a) are given a 
written explanation of the insurance program and are advised 
that they have the right to decline to be insured and, if not 
declined, to elect coverage for a reduced benefit or an 
enhanced benefit under subsection (b).
    ``(f) Members Ineligible To Enroll.--Members of the Ready 
Reserve serving on active duty (or full-time National Guard 
duty) are not eligible to enroll for coverage under the 
insurance program. The Secretary may define any additional 
category of members of the Ready Reserve to be excluded from 
eligibility to purchase insurance under this chapter.

``Sec. 12525. Benefit amounts

    ``(a) Basic Benefit.--The basic benefit for an insured 
member under the insurance program is $1,000 per month (as 
adjusted under subsection (d)).
    ``(b) Reduced and Enhanced Benefits.--Under the regulations 
prescribed by the Secretary, a person enrolled for coverage 
under the insurance program may elect--
            ``(1) a reduced coverage benefit equal to one-half 
        the amount of the basic benefit; or
            ``(2) an enhanced benefit in the amount of $1,500, 
        $2,000, $2,500, $3,000, $3,500, $4,000, $4,500, or 
        $5,000 per month (as adjusted under subsection (d)).
    ``(c) Amount for Partial Month.--The amount of insurance 
payable to an insured member for any period of covered service 
that is less than one month shall be determined by multiplying 
\1/30\ of the monthly benefit rate for the member by the number 
of days of the covered service served by the member during such 
period.
    ``(d) Adjustment of Amounts.--(1) The Secretary shall 
determine annually the effect of inflation on benefits and 
shall adjust the amounts set forth in subsections (a) and 
(b)(2) to maintain the constant dollar value of the benefit.
    ``(2) If the amount of a benefit as adjusted under 
paragraph (1) is not evenly divisible by $10, the amount shall 
be rounded to the nearest multiple of $10, except that an 
amount evenly divisible by $5 but not by $10 shall be rounded 
to the next lower amount that is evenly divisible by $10.

``Sec. 12526. Premiums

    ``(a) Establishment of Rates.--(1) The Secretary, in 
consultation with the Board of Actuaries, shall prescribe the 
premium rates for insurance under the insurance program.
    ``(2) The Secretary shall prescribe a fixed premium rate 
for each $1,000 of monthly insurance benefit. The premium 
amount shall be equal to the share of the cost attributable to 
insuring the member and shall be the same for all members of 
the Ready Reserve who are insured under the insurance program 
for the same benefit amount. The Secretary shall prescribe the 
rate on the basis of the best available estimate of risk and 
financial exposure, levels of subscription by members, and 
other relevant factors.
    ``(b) Level Premiums.--The premium rate prescribed for the 
first year of insurance coverage of an insured member shall be 
continued without change for subsequent years of insurance 
coverage, except that the Secretary, after consultation with 
the Board of Actuaries, may adjust the premium rate in order to 
fund inflation-adjusted benefit increases on an actuarially 
sound basis.

``Sec. 12527. Payment of premiums

    ``(a) Methods of Payment.--(1) The monthly premium for 
coverage of a member under the insurance program shall be 
deducted and withheld from the insured member's pay for each 
month.
    ``(2) An insured member who does not receive pay on a 
monthly basis shall pay the Secretary directly the premium 
amount applicable for the level of benefits for which the 
member is insured.
    ``(b) Advance Pay for Premium.--The Secretary concerned may 
advance to an insured member the amount equal to the first 
insurance premium payment due under this chapter. The advance 
may be paid out of appropriations for military pay. An advance 
to a member shall be collected from the member either by 
deducting and withholding the amount from basic pay payable for 
the member or by collecting it from the member directly. No 
disbursing or certifying officer shall be responsible for any 
loss resulting from an advance under this subsection.
    ``(c) Premiums To Be Deposited in Fund.--Premium amounts 
deducted and withheld from the pay of insured members and 
premium amounts paid directly to the Secretary shall be 
credited monthly to the Fund.

``Sec. 12528. Reserve Mobilization Income Insurance Fund

    ``(a) Establishment.--There is established on the books of 
the Treasury a fund to be known as the `Reserve Mobilization 
Income Insurance Fund', which shall be administered by the 
Secretary of the Treasury. The Fund shall be used for the 
accumulation of funds in order to finance the liabilities of 
the insurance program on an actuarially sound basis.
    ``(b) Assets of Fund.--There shall be deposited into the 
Fund the following:
            ``(1) Premiums paid under section 12527 of this 
        title.
            ``(2) Any amount appropriated to the Fund.
            ``(3) Any return on investment of the assets of the 
        Fund.
    ``(c) Availability.--Amounts in the Fund shall be available 
for paying insurance benefits under the insurance program.
    ``(d) Investment of Assets of Fund.--The Secretary of the 
Treasury shall invest such portion of the Fund as is not in the 
judgment of the Secretary of Defense required to meet current 
liabilities. Such investments shall be in public debt 
securities with maturities suitable to the needs of the Fund, 
as determined by the Secretary of Defense, and bearing interest 
at rates determined by the Secretary of the Treasury, taking 
into consideration current market yields on outstanding 
marketable obligations of the United States of comparable 
maturities. The income on such investments shall be credited to 
the Fund.
    ``(e) Annual Accounting.--At the beginning of each fiscal 
year, the Secretary, in consultation with the Board of 
Actuaries and the Secretary of the Treasury, shall determine 
the following:
            ``(1) The projected amount of the premiums to be 
        collected, investment earnings to be received, and any 
        transfers or appropriations to be made for the Fund for 
        that fiscal year.
            ``(2) The amount for that fiscal year of any 
        cumulative unfunded liability (including any negative 
        amount or any gain to the Fund) resulting from payments 
        of benefits.
            ``(3) The amount for that fiscal year (including 
        any negative amount) of any cumulative actuarial gain 
        or loss to the Fund.

``Sec. 12529. Board of Actuaries

    ``(a) Actuarial Responsibility.--The Board of Actuaries 
shall have the actuarial responsibility for the insurance 
program.
    ``(b) Valuations and Premium Recommendations.--The Board of 
Actuaries shall carry out periodic actuarial valuations of the 
benefits under the insurance program and determine a premium 
rate methodology for the Secretary to use in setting premium 
rates for the insurance program. The Board shall conduct the 
first valuation and determine a premium rate methodology not 
later than six months after the insurance program is 
established.
    ``(c) Effects of Changed Benefits.--If at the time of any 
actuarial valuation under subsection (b) there has been a 
change in benefits under the insurance program that has been 
made since the last such valuation and such change in benefits 
increases or decreases the present value of amounts payable 
from the Fund, the Board of Actuaries shall determine a premium 
rate methodology, and recommend to the Secretary a premium 
schedule, for the liquidation of any liability (or actuarial 
gain to the Fund) resulting from such change and any previous 
such changes so that the present value of the sum of the 
scheduled premium payments (or reduction in payments that would 
otherwise be made) equals the cumulative increase (or decrease) 
in the present value of such benefits.
    ``(d) Actuarial Gains or Losses.--If at the time of any 
such valuation the Board of Actuaries determines that there has 
been an actuarial gain or loss to the Fund as a result of 
changes in actuarial assumptions since the last valuation or as 
a result of any differences, between actual and expected 
experience since the last valuation, the Board shall recommend 
to the Secretary a premium rate schedule for the amortization 
of the cumulative gain or loss to the Fund resulting from such 
changes in assumptions and any previous such changes in 
assumptions or from the differences in actual and expected 
experience, respectively, through an increase or decrease in 
the payments that would otherwise be made to the Fund.
    ``(e) Insufficient Assets.--If at any time liabilities of 
the Fund exceed assets of the Fund as a result of members of 
the Ready Reserve being ordered to active duty as described in 
section 12521(2) of this title, and funds are unavailable to 
pay benefits completely, the Secretary shall request the 
President to submit to Congress a request for a special 
appropriation to cover the unfunded liability. If 
appropriations are not made to cover an unfunded liability in 
any fiscal year, the Secretary shall reduce the amount of the 
benefits paid under the insurance program to a total amount 
that does not exceed the assets of the Fund expected to accrue 
by the end of such fiscal year. Benefits that cannot be paid 
because of such a reduction shall be deferred and may be paid 
only after and to the extent that additional funds become 
available.
    ``(f) Definition of Present Value.--The Board of Actuaries 
shall define the term `present value' for purposes of this 
subsection.

``Sec. 12530. Payment of benefits

    ``(a) Commencement of Payment.--An insured member who 
serves in excess of 30 days of covered service shall be paid 
the amount to which such member is entitled on a monthly basis 
beginning not later than one month after the 30th day of 
covered service.
    ``(b) Method of Payment.--The Secretary shall prescribe in 
the regulations the manner in which payments shall be made to 
the member or to a person designated in accordance with 
subsection (c).
    ``(c) Designated Recipients.--(1) A member may designate in 
writing another person (including a spouse, parent, or other 
person with an insurable interest, as determined in accordance 
with the regulations prescribed by the Secretary) to receive 
payments of insurance benefits under the insurance program.
    ``(2) A member may direct that payments of insurance 
benefits for a person designated under paragraph (1) be 
deposited with a bank or other financial institution to the 
credit of the designated person.
    ``(d) Recipients in Event of Death of Insured Member.--Any 
insurance payable under the insurance program on account of a 
deceased member's period of covered service shall be paid, upon 
the establishment of a valid claim, to the beneficiary or 
beneficiaries which the deceased member designated in writing. 
If no such designation has been made, the amount shall be 
payable in accordance with the laws of the State of the 
member's domicile.

``Sec. 12531. Purchase of insurance

    ``(a) Purchase Authorized.--The Secretary may, instead of 
or in addition to underwriting the insurance program through 
the Fund, purchase from one or more insurance companies a 
policy or policies of group insurance in order to provide the 
benefits required under this chapter. The Secretary may waive 
any requirement for full and open competition in order to 
purchase an insurance policy under this subsection.
    ``(b) Eligible Insurers.--In order to be eligible to sell 
insurance to the Secretary for purposes of subsection (a), an 
insurance company shall--
            ``(1) be licensed to issue insurance in each of the 
        50 States and in the District of Columbia; and
            ``(2) as of the most recent December 31 for which 
        information is available to the Secretary, have in 
        effect at least one percent of the total amount of 
        insurance that all such insurance companies have in 
        effect in the United States.
    ``(c) Administrative Provisions.--(1) An insurance company 
that issues a policy for purposes of subsection (a) shall 
establish an administrative office at a place and under a name 
designated by the Secretary.
    ``(2) For the purposes of carrying out this chapter, the 
Secretary may use the facilities and services of any insurance 
company issuing any policy for purposes of subsection (a), may 
designate one such company as the representative of the other 
companies for such purposes, and may contract to pay a 
reasonable fee to the designated company for its services.
    ``(d) Reinsurance.--The Secretary shall arrange with each 
insurance company issuing any policy for purposes of subsection 
(a) to reinsure, under conditions approved by the Secretary, 
portions of the total amount of the insurance under such policy 
or policies with such other insurance companies (which meet 
qualifying criteria prescribed by the Secretary) as may elect 
to participate in such reinsurance.
    ``(e) Termination.--The Secretary may at any time terminate 
any policy purchased under this section.

``Sec. 12532. Termination for nonpayment of premiums; forfeiture

    ``(a) Termination for Nonpayment.--The coverage of a member 
under the insurance program shall terminate without prior 
notice upon a failure of the member to make required monthly 
payments of premiums for two consecutive months. The Secretary 
may provide in the regulations for reinstatement of insurance 
coverage terminated under this subsection.
    ``(b) Forfeiture.--Any person convicted of mutiny, treason, 
spying, or desertion, or who refuses to perform service in the 
armed forces or refuses to wear the uniform of any of the armed 
forces shall forfeit all rights to insurance under this 
chapter.''.
    (2) The tables of chapters at the beginning of subtitle E, 
and at the beginning of part II of subtitle E, of title 10, 
United States Code, are amended by inserting after the item 
relating to chapter 1213 the following new item:

``1214. Ready Reserve Mobilization Income Insurance.............12521''.

    (b) Effective Date.--The insurance program provided for in 
chapter 1214 of title 10, United States Code, as added by 
subsection (a), and the requirement for deductions and 
contributions for that program shall take effect on September 
30, 1996, or on any earlier date declared by the Secretary and 
published in the Federal Register.

SEC. 513. MILITARY TECHNICIAN FULL-TIME SUPPORT PROGRAM FOR ARMY AND 
                    AIR FORCE RESERVE COMPONENTS.

    (a) Requirement of Annual Authorization of End Strength.--
(1) Section 115 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(g) Congress shall authorize for each fiscal year the end 
strength for military technicians for each reserve component of 
the Army and Air Force. Funds available to the Department of 
Defense for any fiscal year may not be used for the pay of a 
military technician during that fiscal year unless the 
technician fills a position that is within the number of such 
positions authorized by law for that fiscal year for the 
reserve component of that technician. This subsection applies 
without regard to section 129 of this title.''.
    (2) The amendment made by paragraph (1) does not apply with 
respect to fiscal year 1995.
    (b) Authorization for Fiscal Years 1996 and 1997.--For each 
of fiscal years 1996 and 1997, the minimum number of military 
technicians, as of the last day of that fiscal year, for the 
Army and the Air Force (notwithstanding section 129 of title 
10, United States Code) shall be the following:
            (1) Army National Guard, 25,500.
            (2) Army Reserve, 6,630.
            (3) Air National Guard, 22,906.
            (4) Air Force Reserve, 9,802.
    (c) Administration of Military Technician Program.--(1) 
Chapter 1007 of title 10, United States Code, is amended by 
adding at the end the following new section:

``Sec. 10216. Military technicians

    ``(a) Priority for Management of Military Technicians.--(1) 
As a basis for making the annual request to Congress pursuant 
to section 115 of this title for authorization of end strengths 
for military technicians of the Army and Air Force reserve 
components, the Secretary of Defense shall give priority to 
supporting authorizations for dual status military technicians 
in the following high-priority units and organizations:
            ``(A) Units of the Selected Reserve that are 
        scheduled to deploy no later than 90 days after 
        mobilization.
            ``(B) Units of the Selected Reserve that are or 
        will deploy to relieve active duty peacetime operations 
        tempo.
            ``(C) Those organizations with the primary mission 
        of providing direct support surface and aviation 
        maintenance for the reserve components of the Army and 
        Air Force, to the extent that the military technicians 
        in such units would mobilize and deploy in a skill that 
        is compatible with their civilian position skill.
    ``(2) For each fiscal year, the Secretary of Defense shall, 
for the high-priority units and organizations referred to in 
paragraph (1), seek to achieve a programmed manning level for 
military technicians that is not less than 90 percent of the 
programmed manpower structure for those units and organizations 
for military technicians for that fiscal year.
    ``(3) Military technician authorizations and personnel in 
high-priority units and organizations specified in paragraph 
(1) shall be exempt from any requirement (imposed by law or 
otherwise) for reductions in Department of Defense civilian 
personnel and shall only be reduced as part of military force 
structure reductions.
    ``(b) Dual-Status Requirement.--The Secretary of Defense 
shall require the Secretary of the Army and the Secretary of 
the Air Force to establish as a condition of employment for 
each individual who is hired after the date of the enactment of 
this section as a military technician that the individual 
maintain membership in the Selected Reserve (so as to be a so-
called `dual-status' technician) and shall require that the 
civilian and military position skill requirements of dual-
status military technicians be compatible. No Department of 
Defense funds may be spent for compensation for any military 
technician hired after the date of the enactment of this 
section whois not a member of the Selected Reserve, except that 
compensation may be paid for up to six months following loss of 
membership in the Selected Reserve if such loss of membership was not 
due to the failure to meet military standards.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``10216. Military technicians.''.

    (d) Review of Reserve Component Management Headquarters.--
(1) The Secretary of Defense shall, within six months after the 
date of the enactment of this Act, undertake steps to reduce, 
consolidate, and streamline management headquarters operations 
of the reserve components. As part of those steps, the 
Secretary shall identify those military technicians positions 
in such headquarters operations that are excess to the 
requirements of those headquarters.
    (2) Of the military technicians positions that are 
identified under paragraph (1), the Secretary shall reallocate 
up to 95 percent of the annual funding required to support 
those positions for the purpose of creating new positions or 
filling existing positions in the high-priority units and 
activities specified in section 10216(a) of title 10, United 
States Code, as added by subsection (c).
    (e) Annual Defense Manpower Requirements Report.--Section 
115a of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(h) In each such report, the Secretary shall include a 
separate report on the Army and Air Force military technician 
programs. The report shall include a presentation, shown by 
reserve component and shown both as of the end of the preceding 
fiscal year and for the next fiscal year, of the following:
            ``(1) The number of military technicians required 
        to be employed (as specified in accordance with 
        Department of Defense procedures), the number 
        authorized to be employed under Department of Defense 
        personnel procedures, and the number actually employed.
            ``(2) Within each of the numbers under paragraph 
        (1)--
                    ``(A) the number applicable to a reserve 
                component management headquarter organization; 
                and
                    ``(B) the number applicable to high-
                priority units and organizations (as specified 
                in section 10216(a) of this title).
            ``(3) Within each of the numbers under paragraph 
        (1), the numbers of military technicians who are not 
        themselves members of a reserve component (so-called 
        `single-status' technicians), with a further display of 
        such numbers as specified in paragraph (2).''.

SEC. 514. REVISIONS TO ARMY GUARD COMBAT REFORM INITIATIVE TO INCLUDE 
                    ARMY RESERVE UNDER CERTAIN PROVISIONS AND MAKE 
                    CERTAIN REVISIONS.

    (a) Prior Active Duty Personnel.--Section 1111 of the Army 
National Guard Combat Readiness Reform Act of 1992 (title XI of 
Public Law 102-484) is amended--
            (1) in the section heading, by striking out the 
        first three words;
            (2) by striking out subsections (a) and (b) and 
        inserting in lieu thereof the following:
    ``(a) Additional Prior Active Duty Officers.--The Secretary 
of the Army shall increase the number of qualified prior 
active-duty officers in the Army National Guard by providing a 
program that permits the separation of officers on active duty 
with at least two, but less than three, years of active service 
upon condition that the officer is accepted for appointment in 
the Army National Guard. The Secretary shall have a goal of 
having not fewer than 150 officers become members of the Army 
National Guard each year under this section.
    ``(b) Additional Prior Active Duty Enlisted Members.--The 
Secretary of the Army shall increase the number of qualified 
prior active-duty enlisted members in the Army National Guard 
through the use of enlistments as described in section 8020 of 
the Department of Defense Appropriations Act, 1994 (Public Law 
103-139). The Secretary shall enlist not fewer than 1,000 new 
enlisted members each year under enlistments described in that 
section.''; and
            (3) by striking out subsections (d) and (e).
    (b) Service in the Selected Reserve in Lieu of Active Duty 
Service for ROTC Graduates.--Section 1112(b) of such Act (106 
Stat. 2537) is amended by striking out ``National Guard'' 
before the period at the end and inserting in lieu thereof 
``Selected Reserve''.
    (c) Review of Officer Promotions.--Section 1113 of such Act 
(106 Stat. 2537) is amended--
            (1) in subsection (a), by striking out ``National 
        Guard'' both places it appears and inserting in lieu 
        thereof ``Selected Reserve''; and
            (2) by striking out subsection (b) and inserting in 
        lieu thereof the following:
    ``(b) Coverage of Selected Reserve Combat and Early 
Deploying Units.--(1) Subsection (a) applies to officers in all 
units of the Selected Reserve that are designated as combat 
units or that are designated for deployment within 75 days of 
mobilization.
    ``(2) Subsection (a) shall take effect with respect to 
officers of the Army Reserve, and with respect to officers of 
the Army National Guard in units not subject to subsection (a) 
as of the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1996, at the end of the 90-
day period beginning on such date of enactment.''.
    (d) Initial Entry Training and Nondeployable Personnel.--
Section 1115 of such Act (106 Stat. 2538) is amended--
            (1) in subsections (a) and (b), by striking out 
        ``National Guard'' each place it appears and inserting 
        in lieu thereof ``Selected Reserve''; and
            (2) in subsection (c)--
                    (A) by striking out ``a member of the Army 
                National Guard enters the National Guard'' and 
                inserting in lieu thereof ``a member of the 
                Army Selected Reserve enters the Army Selected 
                Reserve''; and
                    (B) by striking out ``from the Army 
                National Guard''.
    (e) Accounting of Members Who Fail Physical Deployability 
Standards.--Section 1116 of such Act (106 Stat. 2539) is 
amended by striking out ``National Guard'' each place it 
appears and inserting in lieu thereof ``Selected Reserve''.
    (f) Use of Combat Simulators.--Section 1120 of such Act 
(106 Stat. 2539) is amended by inserting ``and the Army 
Reserve'' before the period at the end.

SEC. 515. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.

    (a) Associate Units.--Subsection (a) of section 1131 of the 
National Defense Authorization Act for Fiscal Year 1993 (Public 
Law 102-484; 106 Stat. 2540) is amended to read as follows:
    ``(a) Associate Units.--The Secretary of the Army shall 
require--
            ``(1) that each ground combat maneuver brigade of 
        the Army National Guard that (as determined by the 
        Secretary) is essential for the execution of the 
        National Military Strategy be associated with an 
        active-duty combat unit; and
            ``(2) that combat support and combat service 
        support units of the Army Selected Reserve that (as 
        determined by the Secretary) are essential for the 
        execution of the National Military Strategy be 
        associated with active-duty units.''.
    (b)  Responsibilities.--Subsection  (b)  of  such  section  
is amended--
            (1) by striking out ``National Guard combat unit'' 
        in the matter preceding paragraph (1) and inserting in 
        lieu thereof ``National Guard unit or Army Selected 
        Reserve unit that (as determined by the Secretary under 
        subsection (a)) is essential for the execution of the 
        National Military Strategy''; and
            (2) by striking out ``of the National Guard unit'' 
        in paragraphs (1), (2), (3), and (4) and inserting in 
        lieu thereof ``of that unit''.

SEC. 516. LEAVE FOR MEMBERS OF RESERVE COMPONENTS PERFORMING PUBLIC 
                    SAFETY DUTY.

    (a) Election of Leave To Be Charged.--Subsection (b) of 
section 6323 of title 5, United States Code, is amended by 
adding at the end the following: ``Upon the request of an 
employee, the period for which an employee is absent to perform 
service described in paragraph (2) may be charged to the 
employee's accrued annual leave or to compensatory time 
available to the employee instead of being charged as leave to 
which the employee is entitled under this subsection. The 
period of absence may not be charged to sick leave.''.
    (b) Pay for Period of Absence.--Section 5519 of such title 
is amended by striking out ``entitled to leave'' and inserting 
in lieu thereof ``granted military leave''.

SEC. 517. DEPARTMENT OF DEFENSE FUNDING FOR NATIONAL GUARD 
                    PARTICIPATION IN JOINT DISASTER AND EMERGENCY 
                    ASSISTANCE EXERCISES.

    Section 503(a) of title 32, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:
    ``(2) Paragraph (1) includes authority to provide for 
participation of the National Guard in conjunction with the 
Army or the Air Force, or both, in joint exercises for 
instruction to prepare the National Guard for response to civil 
emergencies and disasters.''.

                   Subtitle C--Decorations and Awards

SEC. 521. AWARD OF PURPLE HEART TO PERSONS WOUNDED WHILE HELD AS 
                    PRISONERS OF WAR BEFORE APRIL 25, 1962.

    (a) Award of Purple Heart.--For purposes of the award of 
the Purple Heart, the Secretary concerned (as defined in 
section 101 of title 10, United States Code) shall treat a 
former prisoner of war who was wounded before April 25, 1962, 
while held as a prisoner of war (or while being taken captive) 
in the same manner as a former prisoner of war who is wounded 
on or after that date while held as a prisoner of war (or while 
being taken captive).
    (b) Standards for Award.--An award of the Purple Heart 
under subsection (a) shall be made in accordance with the 
standards in effect on the date of the enactment of this Act 
for the award of the Purple Heart to persons wounded on or 
after April 25, 1962.
    (c) Eligible Former Prisoners of War.--A person shall be 
considered to be a former prisoner of war for purposes of this 
section if the person is eligible for the prisoner-of-war medal 
under section 1128 of title 10, United States Code.

SEC. 522. AUTHORITY TO AWARD DECORATIONS RECOGNIZING ACTS OF VALOR 
                    PERFORMED IN COMBAT DURING THE VIETNAM CONFLICT.

    (a) Findings.--Congress makes the following findings:
            (1) The Ia Drang Valley (Pleiku) campaign, carried 
        out by the Armed Forces in the Ia Drang Valley of 
        Vietnam from October 23, 1965, to November 26, 1965, is 
        illustrative of the many battles during the Vietnam 
        conflict which pitted forces of the United States 
        against North Vietnamese Army regulars and Viet Cong in 
        vicious fighting.
            (2) Accounts of those battles that have been 
        published since the end of that conflict 
        authoritatively document numerous and repeated acts of 
        extraordinary heroism, sacrifice, and bravery on the 
        part of members of the Armed Forces, many of which have 
        never been officially recognized.
            (3) In some of those battles, United States 
        military units suffered substantial losses, with some 
        units sustaining casualties in excess of 50 percent.
            (4) The incidence of heavy casualties throughout 
        the Vietnam conflict inhibited the timely collection of 
        comprehensive and detailed information to support 
        recommendations for awards recognizing acts of heroism, 
        sacrifice, and bravery.
            (5) Subsequent requests to the Secretaries of the 
        military departments for review of award 
        recommendations for such acts have been denied because 
        of restrictions in law and regulations that require 
        timely filing of such recommendations and documented 
        justification.
            (6) Acts of heroism, sacrifice, and bravery 
        performed in combat by members of the Armed Forces 
        deserve appropriate and timely recognition by the 
        people of the United States.
            (7) It is appropriate to recognize acts of heroism, 
        sacrifice, or bravery that are belatedly, but properly, 
        documented by persons who witnessed those acts.
    (b) Waiver of Time Limitations for Recommendations for 
Awards.--(1) Any decoration covered by paragraph (2) may be 
awarded, without regard to any time limit imposed by law or 
regulation for a recommendation for such award to any person 
for actions by that person in the Southeast Asia theater of 
operations while serving on active duty during the Vietnam era. 
The waiver of time limitations under this paragraph applies 
only in the case of awards for acts of valor for which a 
request for consideration is submitted under subsection (c).
    (2) Paragraph (1) applies to any decoration (including any 
device in lieu of a decoration) that, during or after the 
Vietnam era and before the date of the enactment of this Act, 
was authorized by law or under regulations of the Department of 
Defense or the military department concerned to be awarded to 
members of the Armed Forces for acts of valor.
    (c) Review of Requests for Consideration of Awards.--(1) 
The Secretary of each military department shall review each 
request for consideration of award of a decoration described in 
subsection (b) that are received by the Secretary during the 
one-year period beginning on the date of enactment of this Act.
    (2) The Secretaries shall begin the review within 30 days 
after the date of the enactment of this Act and shall complete 
the review of each request for consideration not later than one 
year after the date on which the request is received.
    (3) The Secretary may use the same process for carrying out 
the review as the Secretary uses for reviewing other 
recommendations for award of decorations to members of the 
Armed Forces under the Secretary's jurisdiction for valorous 
acts.
    (d) Report.--(1) Upon completing the review of each such 
request under subsection (c), the Secretary shall submit a 
report on the review to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives.
    (2) The report shall include, with respect to each request 
for consideration received, the following information:
            (A) A summary of the request for consideration.
            (B) The findings resulting from the review.
            (C) The final action taken on the request for 
        consideration.
    (e) Definition.--For purposes of this section:
            (1) The term ``Vietnam era'' has the meaning given 
        that term in section 101 of title 38, United States 
        Code.
            (2) The term ``active duty'' has the meaning given 
        that term in section 101 of title 10, United States 
        Code.

SEC. 523. MILITARY INTELLIGENCE PERSONNEL PREVENTED BY SECRECY FROM 
                    BEING CONSIDERED FOR DECORATIONS AND AWARDS.

    (a) Waiver on Restrictions of Awards.--(1) Any decoration 
covered by paragraph (2) may be awarded, without regard to any 
time limit imposed by law or regulation for a recommendation 
for such award, to any person for an act, achievement, or 
service that the person performed in carrying out military 
intelligence duties during the period beginning on January 1, 
1940, and ending on December 31, 1990.
    (2) Paragraph (1) applies to any decoration (including any 
device in lieu of a decoration) that, during or after the 
period described in paragraph (1) and before the date of the 
enactment of this Act, was authorized by law or under the 
regulations of the Department of Defense or the military 
department concerned to be awarded to a person for an act, 
achievement, or service performed by that person while serving 
on active duty.
    (b) Review of Requests for Consideration of Awards.--(1) 
The Secretary of each military department shall review each 
request for consideration of award of a decoration described in 
subsection (a) that is received by the Secretary during the 
one-year period beginning on the date of the enactment of this 
Act.
    (2) The Secretaries shall begin the review within 30 days 
after the date of the enactment of this Act and shall complete 
the review of each request for consideration not later than one 
year after the date on which the request is received.
    (3) The Secretary may use the same process for carrying out 
the review as the Secretary uses for reviewing other 
recommendations for awarding decorations to members of the 
Armed Forces under the Secretary's jurisdiction for acts, 
achievements, or service.
    (c) Report.--(1) Upon completing the review of each such 
request under subsection (b), the Secretary shall submit a 
report on the review to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives.
    (2) The report shall include, with respect to each request 
for consideration reviewed, the following information:
            (A) A summary of the request for consideration.
            (B) The findings resulting from the review.
            (C) The final action taken on the request for 
        consideration.
            (D) Administrative or legislative recommendations 
        to improve award procedures with respect to military 
        intelligence personnel.
    (d) Definition.--For purposes of this section, the term 
``active duty'' has the meaning given such term in section 101 
of title 10, United States Code.

SEC. 524. REVIEW REGARDING UPGRADING OF DISTINGUISHED-SERVICE CROSSES 
                    AND NAVY CROSSES AWARDED TO ASIAN-AMERICANS AND 
                    NATIVE AMERICAN PACIFIC ISLANDERS FOR WORLD WAR II 
                    SERVICE.

    (a) Review Required.--(1) The Secretary of the Army shall 
review the records relating to each award of the Distinguished-
Service Cross, and the Secretary of the Navy shall review the 
records relating to each award of the Navy Cross, that was 
awarded to an Asian-American or a Native American Pacific 
Islander with respect to service as a member of the Armed 
Forces during World War II. The purpose of the review shall be 
to determine whether any such award should be upgraded to the 
Medal of Honor.
    (2) If the Secretary concerned determines, based upon the 
review under paragraph (1), that such an upgrade is appropriate 
in the case of any person, the Secretary shall submit to the 
President a recommendation that the President award the Medal 
of Honor to that person.
    (b) Waiver of Time Limitations.--A Medal of Honor may be 
awarded to a person referred to in subsection (a) in accordance 
with a recommendation of the Secretary concerned under that 
subsection without regard to--
            (1) section 3744, 6248, or 8744 of title 10, United 
        States Code, as applicable; and
            (2) any regulation or other administrative 
        restriction on--
                    (A) the time for awarding the Medal of 
                Honor; or
                    (B) the awarding of the Medal of Honor for 
                service for which a Distinguished-Service Cross 
                or Navy Cross has been awarded.
    (c) Definition.--For purposes of this section, the term 
``Native American Pacific Islander'' means a Native Hawaiian 
and any other Native American Pacific Islander within 
themeaning of the Native American Programs Act of 1974 (42 U.S.C. 2991 
et seq.).

SEC. 525. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL BASED UPON 
                    SERVICE IN EL SALVADOR.

    (a) In General.--For the purpose of determining eligibility 
of members and former members of the Armed Forces for the Armed 
Forces Expeditionary Medal, the country of El Salvador during 
the period beginning on January 1, 1981 and ending on February 
1, 1992, shall be treated as having been designated as an area 
and a period of time in which members of the Armed Forces 
participated in operations in significant numbers and otherwise 
met the general requirements for the award of that medal.
    (b) Individual Determination.--The Secretary of the 
military department concerned shall determine whether 
individual members or former members of the Armed Forces who 
served in El Salvador during the period beginning on January 1, 
1981 and ending on February 1, 1992 meet the individual service 
requirements for award of the Armed Forces Expeditionary Medal 
as established in applicable regulations. Such determinations 
shall be made as expeditiously as possible after the date of 
the enactment of this Act.

SEC. 526. PROCEDURE FOR CONSIDERATION OF MILITARY DECORATIONS NOT 
                    PREVIOUSLY SUBMITTED IN TIMELY FASHION.

    (a) In General.--Chapter 57 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 1130. Consideration of proposals for decorations not previously 
                    submitted in timely fashion: procedures for review 
                    and recommendation

    ``(a) Upon request of a Member of Congress, the Secretary 
concerned shall review a proposal for the award or presentation 
of a decoration (or the upgrading of a decoration), either for 
an individual or a unit, that is not otherwise authorized to be 
presented or awarded due to limitations established by law or 
policy for timely submission of a recommendation for such award 
or presentation. Based upon such review, the Secretary shall 
make a determination as to the merits of approving the award or 
presentation of the decoration and the other determinations 
necessary to comply with subsection (b).
    ``(b) Upon making a determination under subsection (a) as 
to the merits of approving the award or presentation of the 
decoration, the Secretary concerned shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives and to the 
requesting member of Congress notice in writing of one of the 
following:
            ``(1) The award or presentation of the decoration 
        does not warrant approval on the merits.
            ``(2) The award or presentation of the decoration 
        warrants approval and a waiver by law of time 
        restrictions prescribed by law is recommended.
            ``(3) The award or presentation of the decoration 
        warrants approval on the merits and has been approved 
        as an exception to policy.
            ``(4) The award or presentation of the decoration 
        warrants approval on the merits, but a waiver of the 
        time restrictions prescribed by law or policy is not 
        recommended.
A notice under paragraph (1) or (4) shall be accompanied by a 
statement of the reasons for the decision of the Secretary.
    ``(c) Determinations under this section regarding the award 
or presentation of a decoration shall be made in accordance 
with the same procedures that apply to the approval or 
disapproval of the award or presentation of a decoration when a 
recommendation for such award or presentation is submitted in a 
timely manner as prescribed by law or regulation.
    ``(d) In this section:
            ``(1) The term `Member of Congress' means--
                    ``(A) a Senator; or
                    ``(B) a Representative in, or a Delegate or 
                Resident Commissioner to, Congress.
            ``(2) The term `decoration' means any decoration or 
        award that may be presented or awarded to a member or 
        unit of the armed forces.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``1130. Consideration of proposals for decorations not previously 
          submitted in timely fashion: procedures for review and 
          recommendation.''.

                 Subtitle D--Officer Education Programs

                       PART I--SERVICE ACADEMIES

SEC. 531. REVISION OF SERVICE OBLIGATION FOR GRADUATES OF THE SERVICE 
                    ACADEMIES.

    (a) Military Academy.--Section 4348(a)(2)(B) of title 10, 
United States Code, is amended by striking out ``six years'' 
and inserting in lieu thereof ``five years''.
    (b) Naval Academy.--Section 6959(a)(2)(B) of such title is 
amended by striking out ``six years'' and inserting in lieu 
thereof ``five years''.
    (c) Air Force Academy.--Section 9348(a)(2)(B) of such title 
is amended by striking out ``six years'' and inserting in lieu 
thereof ``five years''.
    (d) Requirement for Review and Report.--(1) The Secretary 
of Defense shall review the effects that each of various 
periods of obligated active duty service for graduates of the 
United States Military Academy, the United States Naval 
Academy, and the United States Air Force Academy would have on 
the number and quality of the eligible and qualified applicants 
seeking appointment to such academies.
    (2) Not later than April 1, 1996, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
a report on the Secretary's findings under the review, together 
with any recommended legislation regarding the minimum periods 
of obligated active duty service for graduates of the United 
States Military Academy, the United States Naval Academy, and 
the United States Air Force Academy.
    (e) Applicability.--The amendments made by this section 
apply to persons first admitted to the United States Military 
Academy, United States Naval Academy, and United States Air 
Force Academy after December 31, 1991.

SEC. 532. NOMINATIONS TO SERVICE ACADEMIES FROM COMMONWEALTH OF THE 
                    NORTHERN MARIANAS ISLANDS.

    (a) Military Academy.--Section 4342(a) of title 10, United 
States Code, is amended by inserting after paragraph (9) the 
following new paragraph:
            ``(10) One cadet from the Commonwealth of the 
        Northern Marianas Islands, nominated by the resident 
        representative from the commonwealth.''.
    (b) Naval Academy.--Section 6954(a) of title 10, United 
States Code, is amended by inserting after paragraph (9) the 
following new paragraph:
            ``(10) One from the Commonwealth of the Northern 
        Marianas Islands, nominated by the resident 
        representative from the commonwealth.''.
    (c) Air Force Academy.--Section 9342(a) of title 10, United 
States Code, is amended by inserting after paragraph (9) the 
following new paragraph:
            ``(10) One cadet from the Commonwealth of the 
        Northern Marianas Islands, nominated by the resident 
        representative from the commonwealth.''.

SEC. 533. REPEAL OF REQUIREMENT FOR ATHLETIC DIRECTOR AND 
                    NONAPPROPRIATED FUND ACCOUNT FOR THE ATHLETICS 
                    PROGRAMS AT THE SERVICE ACADEMIES.

    (a) United States Military Academy.--(1) Section 4357 of 
title 10, United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 403 
of such title is amended by striking out the item relating to 
section 4357.
    (b) United States Naval Academy.--Section 556 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2774) is amended by striking out 
subsections (b) and (e).
    (c) United States Air Force Academy.--(1) Section 9356 of 
title 10, United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 903 
of such title is amended by striking out the item relating to 
section 9356.

SEC. 534. REPEAL OF REQUIREMENT FOR PROGRAM TO TEST PRIVATIZATION OF 
                    SERVICE ACADEMY PREPARATORY SCHOOLS.

    Section 536 of the National Defense Authorization Act for 
Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 4331 note) is 
repealed.

                PART II--RESERVE OFFICER TRAINING CORPS

SEC. 541. ROTC ACCESS TO CAMPUSES.

    (a) In General.--Chapter 49 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 983. Institutions of higher education that prohibit Senior ROTC 
                    units: denial of Department of Defense grants and 
                    contracts

    ``(a) Denial of Department of Defense Grants and 
Contracts.--(1) No funds appropriated or otherwise available to 
the Department of Defense may be made obligated by contract or 
by grant (including a grant of funds to be available for 
student aid) to any institution of higher education that, as 
determined by the Secretary of Defense, has an anti-ROTC policy 
and at which, as determined by the Secretary, the Secretary 
would otherwise maintain or seek to establish a unit of the 
Senior Reserve Officer Training Corps or at which the Secretary 
would otherwise enroll or seek to enroll students for 
participation in a unit of the Senior Reserve Officer Training 
Corps at another nearby institution of higher education.
    ``(2) In the case of an institution of higher education 
that is ineligible for Department of Defense grants and 
contracts by reason of paragraph (1), the prohibition under 
that paragraph shall cease to apply to that institution upon a 
determination by the Secretary that the institution no longer 
has an anti-ROTC policy.
    ``(b) Notice of Determination.--Whenever the Secretary 
makes a determination under subsection (a) that an institution 
has an anti-ROTC policy, or that an institution previously 
determined to have an anti-ROTC policy no longer has such a 
policy, the Secretary--
            ``(1) shall transmit notice of that determination 
        to the Secretary of Education and to the Committee on 
        Armed Services of the Senate and the Committee on 
        National Security of the House of Representatives; and
            ``(2) shall publish in the Federal Register notice 
        of that determination and of the effect of that 
        determination under subsection (a)(1) on the 
        eligibility of that institution for Department of 
        Defense grants and contracts.
    ``(c) Semiannual Notice in Federal Register.--The Secretary 
shall publish in the Federal Register once every six months a 
list of each institution of higher education that is currently 
ineligible for Department of Defense grants and contracts by 
reason of a determination of the Secretary under subsection 
(a).
    ``(d) Anti-ROTC Policy.--In this section, the term `anti-
ROTC policy' means a policy or practice of an institution of 
higher education that--
            ``(1) prohibits, or in effect prevents, the 
        Secretary of Defense from maintaining or establishing a 
        unit of the Senior Reserve Officer Training Corps at 
        that institution, or
            ``(2) prohibits, or in effect prevents, a student 
        at that institution from enrolling in a unit of the 
        Senior Reserve Officer Training Corps at another 
        institution of higher education.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``983. Institutions of higher education that prohibit Senior ROTC units: 
          denial of Department of Defense grants and contracts.''.

SEC. 542. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.

    (a) Clarification of Restriction on Active Duty.--Paragraph 
(2) of section 2107(h) of title 10, United States Code, is 
amended by inserting ``full-time'' before ``active duty'' in 
the second sentence.
    (b) Redesignation of ROTC Scholarships.--Such paragraph is 
further amended by inserting after the first sentence the 
following new sentence: ``A cadet designated under this 
paragraph who, having initially contracted for service as 
provided in subsection (b)(5)(A) and having received financial 
assistance for two years under an award providing for four 
years of financial assistance under this section, modifies such 
contract with the consent of the Secretary of the Army to 
provide for service as described in subsection (b)(5)(B), may 
be counted, for the year in which the contract is modified, 
toward the number of appointments required under the preceding 
sentence for financial assistance awarded for a period of four 
years.''.

SEC. 543. DELAY IN REORGANIZATION OF ARMY ROTC REGIONAL HEADQUARTERS 
                    STRUCTURE.

    (a) Delay.--The Secretary of the Army may not take any 
action to reorganize the regional headquarters and basic camp 
structure of the Reserve Officers Training Corps program of the 
Army until six months after the date on which the report 
required by subsection (d) is submitted.
    (b) Cost-Benefit Analysis.--The Secretary of the Army shall 
conduct a comparative cost-benefit analysis of various options 
for the reorganization of the regional headquarters and basic 
camp structure of the Army ROTC program. As part of such 
analysis, the Secretary shall measure each reorganization 
option considered against a common set of criteria.
    (c) Selection of Reorganization Option for 
Implementation.--Based on the findings resulting from the cost-
benefit analysis under subsection (b) and such other factors as 
the Secretary considers appropriate, the Secretary shall select 
one reorganization option for implementation. The Secretary may 
select an option for implementation only if the Secretary finds 
that the cost-benefit analysis and other factors considered 
clearly demonstrate that such option, better than any other 
option considered--
            (1) provides the structure to meet projected 
        mission requirements;
            (2) achieves the most significant personnel and 
        cost savings;
            (3) uses existing basic and advanced camp 
        facilities to the maximum extent possible;
            (4) minimizes additional military construction 
        costs; and
            (5) makes maximum use of the reserve components to 
        support basic and advanced camp operations, thereby 
        minimizing the effect of those operations on active 
        duty units.
    (d) Report.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of the Army shall submit 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
a report describing the reorganization option selected under 
subsection (c). The report shall include the results of the 
cost-benefit analysis under subsection (b) and a detailed 
rationale for the reorganization option selected.

SEC. 544. DURATION OF FIELD TRAINING OR PRACTICE CRUISE REQUIRED UNDER 
                    THE SENIOR RESERVE OFFICERS' TRAINING CORPS 
                    PROGRAM.

    Section 2104(b)(6)(A)(ii) of title 10, United States Code, 
is amended by striking out ``not less than six weeks' 
duration'' and inserting in lieu thereof ``a duration''.

SEC. 545. ACTIVE DUTY OFFICERS DETAILED TO ROTC DUTY AT SENIOR MILITARY 
                    COLLEGES TO SERVE AS COMMANDANT AND ASSISTANT 
                    COMMANDANT OF CADETS AND AS TACTICAL OFFICERS.

    (a) In General.--Chapter 103 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2111a. Detail of officers to senior military colleges

    ``(a) Detail of Officers To Serve as Commandant or 
Assistant Commandant of Cadets.--(1) Upon the request of a 
senior military college, the Secretary of Defense may detail an 
officer on the active-duty list to serve as Commandant of 
Cadets at that college or (in the case of a college with an 
Assistant Commandant of Cadets) detail an officer on the 
active-duty list to serve as Assistant Commandant of Cadets at 
that college (but not both).
    ``(2) In the case of an officer detailed as Commandant of 
Cadets, the officer may, upon the request of the college, be 
assigned from among the Professor of Military Science, the 
Professor of Naval Science (if any), and the Professor of 
Aerospace Science (if any) at that college or may be in 
addition to any other officer detailed to that college in 
support of the program.
    ``(3) In the case of an officer detailed as Assistant 
Commandant of Cadets, the officer may, upon the request of the 
college, be assigned from among officers otherwise detailed to 
duty at that college in support of the program or may be in 
addition to any other officer detailed to that college in 
support of the program.
    ``(b) Designation of Officers as Tactical Officers.--Upon 
the request of a senior military college, the Secretary of 
Defense may authorize officers (other than officers covered by 
subsection (a)) who are detailed to duty as instructors at that 
college to act simultaneously as tactical officers (with or 
without compensation) for the Corps of Cadets at that college.
    ``(c) Detail of Officers.--The Secretary of a military 
department shall designate officers for detail to the program 
at a senior military college in accordance with criteria 
provided by the college. An officer may not be detailed to a 
senior military college without the approval of that college.
    ``(d) Senior Military Colleges.--The senior military 
colleges are the following:
            ``(1) Texas A&M University.
            ``(2) Norwich College.
            ``(3) The Virginia Military Institute.
            ``(4) The Citadel.
            ``(5) Virginia Polytechnic Institute and State 
        University.
            ``(6) North Georgia College.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2111a. Detail of officers to senior military colleges.''.

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

SEC. 551. REPORT CONCERNING APPROPRIATE FORUM FOR JUDICIAL REVIEW OF 
                    DEPARTMENT OF DEFENSE PERSONNEL ACTIONS.

    (a) Establishment.--The Secretary of Defense shall 
establish an advisory committee to consider issues relating to 
the appropriate forum for judicial review of Department of 
Defense administrative personnel actions.
    (b) Membership.--(1) The committee shall be composed of 
five members, who shall be appointed by the Secretary of 
Defense after consultation with the Attorney General and the 
Chief Justice of the United States.
    (2) All members of the committee shall be appointed not 
later than 30 days after the date of the enactment of this Act.
    (c) Duties.--The committee shall review, and provide 
findings and recommendations regarding, the following matters 
with respect to judicial review of administrative personnel 
actions of the Department of Defense:
            (1) Whether the existing forum for such review 
        through the United States district courts provides 
        appropriate and adequate review of such actions.
            (2) Whether jurisdiction to conduct judicial review 
        of such actions should be established in a single court 
        in order to provide a centralized review of such 
        actions and, if so, in which court that jurisdiction 
        should be vested.
    (d) Report.--(1) Not later than December 15, 1996, the 
committee shall submit to the Secretary of Defense a report 
setting forth its findings and recommendations, including its 
recommendations pursuant to subsection (c).
    (2) Not later than January 1, 1997, the Secretary of 
Defense, after consultation with the Attorney General, shall 
transmit the committee's report to Congress. The Secretary may 
include in the transmittal any comments on the report that the 
Secretary or the Attorney General consider appropriate.
    (e) Termination of Committee.--The committee shall 
terminate 30 days after the date of the submission of its 
report to Congress under subsection (d)(2).

SEC. 552. COMPTROLLER GENERAL REVIEW OF PROPOSED ARMY END STRENGTH 
                    ALLOCATIONS.

    (a) In General.--During fiscal years 1996 through 2001, the 
Comptroller General of the United States shall analyze the 
plans of the Secretary of the Army for the allocation of 
assigned active component end strengths for the Army through 
the requirements process known as Total Army Analysis 2003 and 
through any subsequent similar requirements process of the Army 
that is conducted before 2002. The Comptroller General's 
analysis shall consider whether the proposed active component 
end strengths and planned allocation of forces for that period 
will be sufficient to implement the national military strategy. 
In monitoring those plans, the Comptroller General shall 
determine the extent to which the Army will be able during that 
period--
            (1) to man fully the combat force based on the 
        projected active component Army end strength for each 
        of fiscal years 1996 through 2001;
            (2) to meet the support requirements for the force 
        and strategy specified in the report of the Bottom-Up 
        Review, including requirements for operations other 
        than war; and
            (3) to streamline further Army infrastructure in 
        order to eliminate duplication and inefficiencies and 
        replace active duty personnel in overhead positions, 
        whenever practicable, with civilian or reserve 
        personnel.
    (b) Access to Documents, Etc.--The Secretary of the Army 
shall ensure that the Comptroller General is provided access, 
on a timely basis and in accordance with the needs of the 
Comptroller General, to all analyses, models, memoranda, 
reports, and other documents prepared or used in connection 
with the requirements process of the Army known as Total Army 
Analysis 2003 and any subsequent similar requirements process 
of the Army that is conducted before 2002.
    (c) Annual Report.--Not later than March 1 of each year 
through 2002, the Comptroller General shall submit to Congress 
a report on the findings and conclusions of the Comptroller 
General under this section.

SEC. 553. REPORT ON MANNING STATUS OF HIGHLY DEPLOYABLE SUPPORT UNITS.

    (a) Report.--Not later than September 30, 1996, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the units of the 
Armed Forces under the Secretary's jurisdiction--
            (1) that (as determined by the Secretary of the 
        military department concerned) are high-priority 
        support units that would deploy early in a contingency 
        operation or other crisis; and
            (2) that are, as a matter of policy, managed at 
        less than 100 percent of their authorized strengths.
    (b) Matters To Be Included.--The Secretary shall include in 
the report--
            (1) the number of such high-priority support units 
        (shown by type of unit) that are so managed;
            (2) the level of manning within such high-priority 
        support units; and
            (3) with respect to each such unit, either the 
        justification for manning of less than 100 percent or 
        the status of corrective action.

SEC. 554. REVIEW OF SYSTEM FOR CORRECTION OF MILITARY RECORDS.

    (a) Review of Procedures.--The Secretary of Defense shall 
review the system and procedures for the correction of military 
records used by the Secretaries of the military departments in 
the exercise of authority under section 1552 of title 10, 
United States Code, in order to identify potential improvements 
that could be made in the process for correcting military 
records to ensure fairness, equity, and (consistent with 
appropriate service to applicants) maximum efficiency. The 
Secretary may not delegate responsibility for the review to an 
officer or official of a military department.
    (b) Issues Reviewed.--In conducting the review, the 
Secretary shall consider (with respect to each Board for the 
Correction of Military Records) the following:
            (1) The composition of the board and of the support 
        staff for the board.
            (2) Timeliness of final action.
            (3) Independence of deliberations by the civilian 
        board.
            (4) The authority of the Secretary of the military 
        department concerned to modify the recommendations of 
        the board.
            (5) Burden of proof and other evidentiary 
        standards.
            (6) Alternative methods for correcting military 
        records.
            (7) Whether the board should be consolidated with 
        the Discharge Review Board of the military department.
    (c) Report.--Not later than April 1, 1996, the Secretary of 
Defense shall submit a report on the results of the Secretary's 
review under this section to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives. The report shall contain the 
recommendations of the Secretary for improving the process for 
correcting military records in order to achieve the objectives 
referred to in subsection (a).

SEC. 555. REPORT ON THE CONSISTENCY OF REPORTING OF FINGERPRINT CARDS 
                    AND FINAL DISPOSITION FORMS TO THE FEDERAL BUREAU 
                    OF INVESTIGATION.

    (a) Report.--The Secretary of Defense shall submit to 
Congress a report on the consistency with which fingerprint 
cards and final disposition forms, as described in Criminal 
Investigations Policy Memorandum 10 issued by the Defense 
Inspector General on March 25, 1987, are reported by the 
Defense Criminal Investigative Organizations to the Federal 
Bureau of Investigation for inclusion in the Bureau's criminal 
history identification files. The report shall be prepared in 
consultation with the Director of the Federal Bureau of 
Investigation.
    (b) Matters To Be Included.--In the report, the Secretary 
shall--
            (1) survey fingerprint cards and final disposition 
        forms filled out in the past 24 months by each 
        investigative organization;
            (2) compare the fingerprint cards and final 
        disposition forms filled out to all judicial and 
        nonjudicial procedures initiated as a result of actions 
        taken by each investigative service in the past 24 
        months;
            (3) account for any discrepancies between the forms 
        filled out and the judicial and nonjudicial procedures 
        initiated;
            (4) compare the fingerprint cards and final 
        disposition forms filled out with the information held 
        by the Federal Bureau of Investigation criminal history 
        identification files;
            (5) identify any weaknesses in the collection of 
        fingerprint cards and final disposition forms and in 
        the reporting of that information to the Federal Bureau 
        of Investigation; and
            (6) determine whether or not other law enforcement 
        activities of the military services collect and report 
        such information or, if not, should collect and report 
        such information.
    (c) Submission of Report.--The report shall be submitted 
not later than one year after the date of the enactment of this 
Act.
    (d) Definition.--For the purposes of this section, the term 
``criminal history identification files'', with respect to the 
Federal Bureau of Investigation, means the criminal history 
record system maintained by the Federal Bureau of Investigation 
based on fingerprint identification and any other method of 
positive identification.

                       Subtitle F--Other Matters

SEC. 561. EQUALIZATION OF ACCRUAL OF SERVICE CREDIT FOR OFFICERS AND 
                    ENLISTED MEMBERS.

    (a) Enlisted Service Credit.--Section 972 of title 10, 
United States Code, is amended--
            (1) by inserting ``(a) Enlisted Members Required To 
        Make Up Time Lost.--'' before ``An enlisted member'';
            (2) by striking out paragraphs (3) and (4) and 
        inserting in lieu thereof the following:
            ``(3) is confined by military or civilian 
        authorities for more than one day in connection with a 
        trial, whether before, during, or after the trial; 
        or''; and
            (3) by redesignating paragraph (5) as paragraph 
        (4).
    (b) Officer Service Credit.--Such section is further 
amended by adding at the end the following:
    ``(b) Officers Not Allowed Service Credit for Time Lost.--
In the case of an officer of an armed force who after the date 
of the enactment of the National Defense Authorization Act for 
Fiscal Year 1996--
            ``(1) deserts;
            ``(2) is absent from his organization, station, or 
        duty for more than one day without proper authority, as 
        determined by competent authority;
            ``(3) is confined by military or civilian 
        authorities for more than one day in connection with a 
        trial, whether before, during, or after the trial; or
            ``(4) is unable for more than one day, as 
        determined by competent authority, to perform his 
        duties because of intemperate use of drugs or alcoholic 
        liquor, or because of disease or injury resulting from 
        his misconduct;
the period of such desertion, absence, confinement, or 
inability to perform duties may not be counted in computing, 
for any purpose other than basic pay under section 205 of title 
37, the officer's length of service.''.
    (c) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 972. Members: effect of time lost

    (2) The item relating to section 972 in the table of 
sections at the beginning of chapter 49 of such title is 
amended to read as follows:

``972. Members: effect of time lost.''.

    (d) Conforming Amendments.--(1) Section 1405(c) is 
amended--
            (A) by striking out ``Made Up.--Time'' and 
        inserting in lieu thereof ``Made Up or Excluded.--(1) 
        Time'';
            (B) by striking out ``section 972'' and inserting 
        in lieu thereof ``section 972(a)'';
            (C) by inserting after ``of this title'' the 
        following: ``, or required to be made up by an enlisted 
        member of the Navy, Marine Corps, or Coast Guard under 
        that section with respect to a period of time after the 
        date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 1995,''; and
            (D) by adding at the end the following:
    ``(2) Section 972(b) of this title excludes from 
computation of an officer's years of service for purposes of 
this section any time identified with respect to that officer 
under that section.''.
    (2) Chapter 367 of such title is amended--
            (A) in section 3925(b), by striking out ``section 
        972'' and inserting in lieu thereof ``section 972(a)''; 
        and
            (B) by adding at the end of section 3926 the 
        following new subsection:
    ``(e) Section 972(b) of this title excludes from 
computation of an officer's years of service for purposes of 
this section any time identified with respect to that officer 
under that section.''.
    (3)(A) Chapter 571 of such title is amended by inserting 
after section 6327 the following new section:

``Sec. 6328. Computation of years of service: voluntary retirement

    ``(a) Enlisted Members.--Time required to be made up under 
section 972(a) of this title after the date of the enactment of 
this section may not be counted in computing years of service 
under this chapter.
    ``(b) Officers.--Section 972(b) of this title excludes from 
computation of an officer's years of service for purposes of 
this chapter any time identified with respect to that officer 
under that section.''.
    (B) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 6327 
the following new item:

``6328. Computation of years of service: voluntary retirement.''.

    (4) Chapter 867 of such title is amended--
            (A) in section 8925(b), by striking out ``section 
        972'' and inserting in lieu thereof ``section 972(a)''; 
        and
            (B) by adding at the end of section 8926 the 
        following new subsection:
    ``(d) Section 972(b) of this title excludes from 
computation of an officer's years of service for purposes of 
this section any time identified with respect to that officer 
under that section.''.
    (e) Effective Date and Applicability.--The amendments made 
by this section shall take effect on the date of the enactment 
of this Act and shall apply to any period of time covered by 
section 972 of title 10, United States Code, that occurs after 
that date.

SEC. 562. ARMY RANGER TRAINING.

    (a) In General.--(1) Chapter 401 of title 10, United States 
Code, is amended by inserting after section 4302 the following 
new section:

``Sec. 4303. Army Ranger training: instructor staffing; safety

    ``(a) Levels of Personnel Assigned.--(1) The Secretary of 
the Army shall ensure that at all times the number of officers, 
and the number of enlisted members, permanently assigned to the 
Ranger Training Brigade (or other organizational element of the 
Army primarily responsible for ranger student training) are not 
less than 90 percent of the required manning spaces for 
officers, and for enlisted members, respectively, for that 
brigade.
    ``(2) In this subsection, the term `required manning 
spaces' means the number of personnel spaces for officers, and 
the number of personnel spaces for enlisted members, that are 
designated in Army authorization documents as the number 
required to accomplish the missions of a particular unit or 
organization.
    ``(b) Training Safety Cells.--(1) The Secretary of the Army 
shall establish and maintain an organizational entity known as 
a `safety cell' as part of the organizational elements of the 
Army responsible for conducting each of the three major phases 
of the Ranger Course. The safety cell in each different 
geographic area of Ranger Course training shall be comprised of 
personnel who have sufficient continuity and experience in that 
geographic area of such training to be knowledgeable of the 
local conditions year-round, including conditions of terrain, 
weather, water, and climate and other conditions and the 
potential effect on those conditions on Ranger student training 
and safety.
    ``(2) Members of each safety cell shall be assigned in 
sufficient numbers to serve as advisers to the officers in 
charge of the major phase of Ranger training and shall assist 
those officers in making informed daily `go' and `no-go' 
decisions regarding training in light of all relevant 
conditions, including conditions of terrain, weather, water, 
and climate and other conditions.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 4302 
the following new item:

``4303. Army Ranger training: instructor staffing; safety.''.

    (b) Accomplishment of Required Manning Levels.--(1) If, as 
of the date of the enactment of this Act, the number of 
officers, and the number of enlisted members, permanently 
assigned to the Army Ranger Training Brigade are not each at 
(or above) the requirement specified in subsection (a) of 
section 4303 of title 10, United States Code, as added by 
subsection (a), the Secretary of the Army shall--
            (A) take such steps as necessary to accomplish that 
        requirement within 12 months after such date of 
        enactment; and
            (B) submit to Congress, not later than 90 days 
        after such date of enactment, a plan to achieve and 
        maintain that requirement.
    (2) The requirement specified in subsection (a) of section 
4303 of title 10, United States Code, as added by subsection 
(a), shall expire two years after the date (on or after the 
date of the enactment of this Act) on which the required 
manning levels referred to in paragraph (1) are first attained.
    (c) GAO Assessment.--(1) Not later than one year from the 
date of the enactment of this Act, the Comptroller General 
shall submit to Congress a report providing a preliminary 
assessment of the implementation and effectiveness of all 
corrective actions taken by the Army as a result of the 
February 1995 accident at the Florida Ranger Training Camp, 
including an evaluation of the implementation of the required 
manning levels established by subsection (a) of section 4303 of 
title 10, United States Code, as added by subsection (a).
    (2) At the end of the two-year period specified in 
subsection (b)(2), the Comptroller General shall submit to 
Congress a report providing a final assessment of the matters 
covered in the preliminary report under paragraph (1). The 
report shall include the Comptroller General's recommendation 
as to the need to continue required statutory manning levels as 
specified in subsection (a) of section 4303 of title 10, United 
States Code, as added by subsection (a).
    (d) Sense of Congress.--In light of requirement that 
particularly dangerous training activities (such as Ranger 
training, Search, Evasion, Rescue, and Escape (SERE) training, 
SEAL training, and Airborne training) must be adequately manned 
and resourced to ensure safety and effective oversight, it is 
the sense of Congress--
            (1) that the Secretary of Defense, in conjunction 
        with the Secretaries of the military departments, 
        should review and, if necessary, enhance oversight of 
        all such training activities; and
            (2) that organizations similar to the safety cells 
        required to be established for Army Ranger training in 
        section 4303 of title 10, United States Code, as added 
        by subsection (a), should (when appropriate) be used 
        for all such training activities.

SEC. 563. SEPARATION IN CASES INVOLVING EXTENDED CONFINEMENT.

    (a) Separation.--(1)(A) Chapter 59 of title 10, United 
States Code, is amended by inserting after section 1166 the 
following new section:

``Sec. 1167. Members under confinement by sentence of court-martial: 
                    separation after six months confinement

    ``Except as otherwise provided in regulations prescribed by 
the Secretary of Defense, a member sentenced by a court-martial 
to a period of confinement for more than six months may be 
separated from the member's armed force at any time after the 
sentence to confinement has become final under chapter 47 of 
this title and the person has served in confinement for a 
period of six months.''.
    (B) The table of sections at the beginning of chapter 59 of 
such title is amended by inserting after the item relating to 
section 1166 the following new item:

``1167. Members under confinement by sentence of court-martial: 
          separation after six months confinement.''.

    (2)(A) Chapter 1221 of title 10, United States Code, is 
amended by adding at the end the following:

``Sec. 12687. Reserves under confinement by sentence of court-martial: 
                    separation after six months confinement

    ``Except as otherwise provided in regulations prescribed by 
the Secretary of Defense, a Reserve sentenced by a court-
martial to a period of confinement for more than six months may 
be separated from that Reserve's armed force at any time after 
the sentence to confinement has become final under chapter 47 
of this title and the Reserve has served in confinement for a 
period of six months.''.
    (B) The table of sections at the beginning of chapter 1221 
of such title is amended by inserting at the end thereof the 
following new item:

``12687. Reserves under confinement by sentence of court-martial: 
          separation after six months confinement.''.

    (b) Drop From Rolls.--(1) Section 1161(b) of title 10, 
United States Code, is amended by striking out ``or (2)'' and 
inserting in lieu thereof ``(2) who may be separated under 
section 1178 of this title by reason of a sentence to 
confinement adjudged by a court-martial, or (3)''.
    (2) Section 12684 of such title is amended--
            (A) by striking out ``or'' at the end of paragraph 
        (1);
            (B) by redesignating paragraph (2) as paragraph 
        (3); and
            (C) by inserting after paragraph (1) the following 
        new paragraph (2):
            ``(2) who may be separated under section 12687 of 
        this title by reason of a sentence to confinement 
        adjudged by a court-martial; or''.

SEC. 564. LIMITATIONS ON REDUCTIONS IN MEDICAL PERSONNEL.

    (a) In General.--(1) Chapter 3 of title 10, United States 
Code, is amended by inserting after section 129b the following 
new section:

``Sec. 129c. Medical personnel: limitations on reductions

    ``(a) Limitation on Reduction.--For any fiscal year, the 
Secretary of Defense may not make a reduction in the number of 
medical personnel of the Department of Defense described in 
subsection (b) unless the Secretary makes a certification for 
that fiscal year described in subsection (c).
    ``(b) Covered Reductions.--Subsection (a) applies to a 
reduction in the number of medical personnel of the Department 
of Defense as of the end of a fiscal year to a number that is 
less than--
            ``(1) 95 percent of the number of such personnel at 
        the end of the immediately preceding fiscal year; or
            ``(2) 90 percent of the number of such personnel at 
        the end of the third fiscal year preceding the fiscal 
        year.
    ``(c) Certification.--A certification referred to in 
subsection (a) with respect to reductions in medical personnel 
of the Department of Defense for any fiscal year is a 
certification by the Secretary of Defense to Congress that--
            ``(1) the number of medical personnel being reduced 
        is excess to the current and projected needs of the 
        Department of Defense; and
            ``(2) such reduction will not result in an increase 
        in the cost of health care services provided under the 
        Civilian Health and Medical Program of the Uniformed 
        Services under chapter 55 of this title.
    ``(d) Policy for Implementing Reductions.--Whenever the 
Secretary of Defense directs that there be a reduction in the 
total number of military medical personnel of the Department of 
Defense, the Secretary shall require that the reduction be 
carried out so as to ensure that the reduction is not 
exclusively or disproportionately borne by any one of the armed 
forces and is not exclusively or disproportionately borne by 
either the active or the reserve components.
    ``(e) Definition.--In this section, the term `medical 
personnel' means--
            ``(1) the members of the armed forces covered by 
        the term `medical personnel' as defined in section 
        115a(g)(2) of this title; and
            ``(2) the civilian personnel of the Department of 
        Defense assigned to military medical facilities.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 129b 
the following new item:

``129c. Medical personnel: limitations on reductions.''.

    (b) Special Transition Rule for Fiscal Year 1996.--For 
purposes of applying subsection (b)(1) of section 129c of title 
10, United States Code, as added by subsection (a), during 
fiscal year 1996, the number against which the percentage 
limitation of 95 percent is computed shall be the number of 
medical personnel of the Department of Defense as of the end of 
fiscal year 1994 (rather than the number as of the end of 
fiscal year 1995).
    (c) Report on Planned Reductions.--(1) Not later than March 
1, 1996, the Secretary of Defense shall submit to the Committee 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a plan for the 
reduction of the number of medical personnel of the Department 
of Defense over the five-year period beginning on October 1, 
1996.
    (2) The Secretary shall prepare the plan through the 
Assistant Secretary of Defense having responsibility for health 
affairs, who shall consult in the preparation of the plan with 
the Surgeon General of the Army, the Surgeon General of the 
Navy, and the Surgeon General of the Air Force.
    (3) For purposes of this subsection, the term ``medical 
personnel of the Department of Defense'' shall have the meaning 
given the term ``medical personnel'' in section 129c(e) of 
title 10, United States Code, as added by subsection (a).
    (d) Repeal of Superseded Provisions of Law.--The following 
provisions of law are repealed:
            (1) Section 711 of the National Defense 
        Authorization Act for Fiscal Year 1991 (10 U.S.C. 115 
        note).
            (2) Subsection (b) of section 718 of the National 
        Defense Authorization Act for Fiscal Years 1992 and 
        1993 (Public Law 102-190; 10 U.S.C. 115 note).
            (3) Section 518 of the National Defense 
        Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 10 U.S.C. 12001 note).

SEC. 565. SENSE OF CONGRESS CONCERNING PERSONNEL TEMPO RATES.

    (a) Findings.--Congress makes the following findings:
            (1) Excessively high personnel tempo rates for 
        members of the Armed Forces resulting from high-tempo 
        unit operations degrades unit readiness and morale and 
        eventually can be expected to adversely affect unit 
        retention.
            (2) The Armed Forces have begun to develop methods 
        to measure and manage personnel tempo rates.
            (3) The Armed Forces have attempted to reduce 
        operations and personnel tempo for heavily tasked units 
        by employing alternative capabilities and reducing 
        tasking requirements.
    (b) Sense of Congress.--The Secretary of Defense should 
continue to enhance the knowledge within the Armed Forces of 
personnel tempo and to improve the techniques by which 
personnel tempo is defined and managed with a view toward 
establishing and achieving reasonable personnel tempo standards 
for all personnel, regardless of service, unit, or assignment.

SEC. 566. SEPARATION BENEFITS DURING FORCE REDUCTION FOR OFFICERS OF 
                    COMMISSIONED CORPS OF NATIONAL OCEANIC AND 
                    ATMOSPHERIC ADMINISTRATION.

    (a) Separation Benefits.--Subsection (a) of section 3 of 
the Act of August 10, 1956 (33 U.S.C. 857a), is amended by 
adding at the end the following new paragraph:
            ``(15) Section 1174a, special separation benefits 
        (except that benefits under subsection (b)(2)(B) of 
        such section are subject to the availability of 
        appropriations for such purpose and are provided at the 
        discretion of the Secretary of Commerce).''.
    (b) Technical Corrections.--Such section is further 
amended--
            (1) by striking out ``Coast and Geodetic Survey'' 
        in subsections (a) and (b) and inserting in lieu 
        thereof ``commissioned officer corps of the National 
        Oceanic and Atmospheric Administration''; and
            (2) in subsection (a), by striking out ``including 
        changes in those rules made after the effective date of 
        this Act'' in the matter preceding paragraph (1) and 
        inserting in lieu thereof ``as those provisions are in 
        effect from time to time''.
    (c) Temporary Early Retirement Authority.--Section 4403 
(other than subsection (f)) of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 
Stat. 2702; 10 U.S.C. 1293 note) shall apply to the 
commissioned officer corps of the National Oceanic and 
Atmospheric Administration in the same manner and to the same 
extent as that section applies to the Department of Defense. 
The Secretary of Commerce shall implement the provisions of 
that section with respect to such commissioned officer corps 
and shall apply the provisions of that section to the 
provisions of the Coast and Geodetic Survey Commissioned 
Officers' Act of 1948 relating to the retirement of members of 
such commissioned officer corps.
    (d) Effective Date.--This section shall apply only to 
members of the commissioned officer corps of the National 
Oceanic and Atmospheric Administration who are separated after 
September 30, 1995.

SEC. 567. DISCHARGE OF MEMBERS OF THE ARMED FORCES WHO HAVE THE HIV-1 
                    VIRUS.

    (a) In General.--(1) Section 1177 of title 10, United 
States Code, is amended to read as follows:

``Sec. 1177. Members infected with HIV-1 virus: mandatory discharge or 
                    retirement

    ``(a) Mandatory Separation.--A member of the armed forces 
who is HIV-positive shall be separated. Such separation shall 
be made on a date determined by the Secretary concerned, which 
shall be as soon as practicable after the date on which the 
determination is made that the member is HIV-positive and not 
later than the last day of the sixth month beginning after such 
date.
    ``(b) Form of Separation.--If a member to be separated 
under this section is eligible to retire under any provision of 
law or to be transferred to the Fleet Reserve or Fleet Marine 
Corps Reserve, the member shall be so retired or so 
transferred. Otherwise, the member shall be discharged. The 
characterization of the service of the member shall be 
determined without regard to the determination that the member 
is HIV-positive.
    ``(c) Deferral of Separation for Members in 18-Year 
Retirement Sanctuary.--In the case of a member to be discharged 
under this section who on the date on which the member is to be 
discharged is within two years of qualifying for retirement 
under any provision of law, or of qualifying for transfer to 
the Fleet Reserve or Fleet Marine Corps Reserve under section 
6330 of this title, the member may, as determined by the 
Secretary concerned, be retained on active duty until the 
member is qualified for retirement or transfer to the Fleet 
Reserve or Fleet Marine Corps Reserve, as the case may be, and 
then be so retired or transferred, unless the member is sooner 
retired or discharged under any other provision of law.
    ``(d) Separation To Be Considered Involuntary.--A 
separation under this section shall be considered to be an 
involuntary separation for purposes of any other provision of 
law.
    ``(e) Entitlement to Health Care.--A member separated under 
this section shall be entitled to medical and dental care under 
chapter 55 of this title to the same extent and under the same 
conditions as a person who is entitled to such care under 
section 1074(b) of this title.
    ``(f) Counseling About Available Medical Care.--A member to 
be separated under this section shall be provided information, 
in writing, before such separation of the available medical 
care (through the Department of Veterans Affairs and otherwise) 
to treat the member's condition. Such information shall include 
identification of specific medical locations near the member's 
home of record or point of discharge at which the member may 
seek necessary medical care.
    ``(g) HIV-Positive Members.--A member shall be considered 
to be HIV-positive for purposes of this section if there is 
serologic evidence that the member is infected with the virus 
known as Human Immunodeficiency Virus-1 (HIV-1), the virus most 
commonly associated with the acquired immune deficiency 
syndrome (AIDS) in the United States. Such serologic evidence 
shall be considered to exist if there is a reactive result 
given by an enzyme-linked immunosorbent assay (ELISA) serologic 
test that is confirmed by a reactive and diagnostic 
immunoelectrophoresis test (Western blot) on two separate 
samples. Any such serologic test must be one that is approved 
by the Food and Drug Administration.''.
    (2) The item relating to such section in the table of 
sections at the beginning of chapter 59 of such title is 
amended to read as follows:

``1177. Members infected with HIV-1 virus: mandatory discharge or 
          retirement.''.

    (b) Effective Date.--Section 1177 of title 10, United 
States Code, as amended by subsection (a), applies with respect 
to members of the Armed Forces determined to be HIV-positive 
before, on, or after the date of the enactment of this Act. In 
the case of a member of the Armed Forces determined to be HIV-
positive before such date, the deadline for separation of the 
member under subsection (a) of such section, as so amended, 
shall be determined from the date of the enactment of this Act 
(rather than from the date of such determination).

SEC. 568. REVISION AND CODIFICATION OF MILITARY FAMILY ACT AND MILITARY 
                    CHILD CARE ACT.

    (a) In General.--(1) Subtitle A of title 10, United States 
Code, is amended by inserting after chapter 87 the following 
new chapter:

     ``CHAPTER 88--MILITARY FAMILY PROGRAMS AND MILITARY CHILD CARE

  ``Subchapter                                                      Sec.
       Military Family Programs.....................................1781
       Military Child Care..........................................1791

                ``SUBCHAPTER I--MILITARY FAMILY PROGRAMS

``Sec.
``1781. Office of Family Policy.
``1782. Surveys of military families.
``1783. Family members serving on advisory committees.
``1784. Employment opportunities for military spouses.
``1785. Youth sponsorship program.
``1786. Dependent student travel within the United States.
``1787. Reporting of child abuse.

``Sec. 1781. Office of Family Policy

    ``(a) Establishment.--There is in the Office of the 
Secretary of Defense an Office of Family Policy (hereinafter in 
this section referred to as the `Office'). The Office shall be 
under the Assistant Secretary of Defense for Force Management 
and Personnel.
    ``(b) Duties.--The Office--
            ``(1) shall coordinate programs and activities of 
        the military departments to the extent that they relate 
        to military families; and
            ``(2) shall make recommendations to the Secretaries 
        of the military departments with respect to programs 
        and policies regarding military families.
    ``(c) Staff.--The Office shall have not less than five 
professional staff members.

``Sec. 1782. Surveys of military families

    ``(a) Authority.--The Secretary of Defense may conduct 
surveys of members of the armed forces on active duty or in an 
active status, members of the families of such members, and 
retired members of the armed forces to determine the 
effectiveness of Federal programs relating to military families 
and the need for new programs.
    ``(b) Responses To Be Voluntary.--Responses to surveys 
conducted under this section shall be voluntary.
    ``(c) Federal Recordkeeping Requirements.--With respect to 
such surveys, family members of members of the armed forces and 
reserve and retired members of the armed forces shall be 
considered to be employees of the United States for purposes of 
section 3502(3)(A)(i) of title 44.

``Sec. 1783. Family members serving on advisory committees

    ``A committee within the Department of Defense which 
advises or assists the Department in the performance of any 
function which affects members of military families and which 
includes members of military families in its membership shall 
not be considered an advisory committee under section 3(2) of 
the Federal Advisory Committee Act (5 U.S.C. App.) solely 
because of such membership.

``Sec. 1784. Employment opportunities for military spouses

    ``(a) Authority.--The President shall order such measures 
as the President considers necessary to increase employment 
opportunities for spouses of members of the armed forces. Such 
measures may include--
            ``(1) excepting, pursuant to section 3302 of title 
        5, from the competitive service positions in the 
        Department of Defense located outside of the United 
        States to provide employment opportunities for 
        qualified spouses of members of the armed forces in the 
        same geographical area as the permanent duty station of 
        the members; and
            ``(2) providing preference in hiring for positions 
        in nonappropriated fund activities to qualified spouses 
        of members of the armed forces stationed in the same 
        geographical area as the nonappropriated fund activity 
        for positions in wage grade UA-8 and below and 
        equivalent positions and for positions paid at hourly 
        rates.
    ``(b) Regulations.--The Secretary of Defense shall 
prescribe regulations--
            ``(1) to implement such measures as the President 
        orders under subsection (a);
            ``(2) to provide preference to qualified spouses of 
        members of the armed forces in hiring for any civilian 
        position in the Department of Defense if the spouse is 
        among persons determined to be best qualified for the 
        position and if the position is located in the same 
        geographical area as the permanent duty station of the 
        member;
            ``(3) to ensure that notice of any vacant position 
        in the Department of Defense is provided in a manner 
        reasonably designed to reach spouses of members of the 
        armed forces whose permanent duty stations are in the 
        same geographic area as the area in which the position 
        is located; and
            ``(4) to ensure that the spouse of a member of the 
        armed forces who applies for a vacant position in the 
        Department of Defense shall, to the extent practicable, 
        be considered for any such position located in the same 
        geographic area as the permanent duty station of the 
        member.
    ``(c) Status of Preference Eligibles.--Nothing in this 
section shall be construed to provide a spouse of a member of 
the armed forces with preference in hiring over an individual 
who is a preference eligible.

``Sec. 1785. Youth sponsorship program

    ``(a) Requirement.--The Secretary of Defense shall require 
that there be at each military installation a youth sponsorship 
program to facilitate the integration of dependent children of 
members of the armed forces into new surroundings when moving 
to that military installation as a result of a parent's 
permanent change of station.
    ``(b) Description of Programs.--The program at each 
installation shall provide for involvement of dependent 
children of members presently stationed at the military 
installation and shall be directed primarily toward children in 
their preteen and teenage years.

``Sec. 1786. Dependent student travel within the United States

    ``Funds available to the Department of Defense for the 
travel and transportation of dependent students of members of 
the armed forces stationed overseas may be obligated for 
transportation allowances for travel within or between the 
contiguous States.

``Sec. 1787. Reporting of child abuse

    ``(a) In General.--The Secretary of Defense shall request 
each State to provide for the reporting to the Secretary of any 
report the State receives of known or suspected instances of 
child abuse and neglect in which the person having care of the 
child is a member of the armed forces (or the spouse of the 
member).
    ``(b) Definition.--In this section, the term `child abuse 
and neglect' has the meaning provided in section 3(1) of the 
Child Abuse Prevention and Treatment Act (42 U.S.C. 5102).

                  ``SUBCHAPTER II--MILITARY CHILD CARE

``Sec.
``1791. Funding for military child care.
``1792. Child care employees.
``1793. Parent fees.
``1794. Child abuse prevention and safety at facilities.
``1795. Parent partnerships with child development centers.
``1796. Subsidies for family home day care.
``1797. Early childhood education program.
``1798. Definitions.

``Sec. 1791. Funding for military child care

    ``It is the policy of Congress that the amount of 
appropriated funds available during a fiscal year for operating 
expenses for military child development centers and programs 
shall be not less than the amount of child care fee receipts 
that are estimated to be received by the Department of Defense 
during that fiscal year.

``Sec. 1792. Child care employees

    ``(a) Required Training.--(1) The Secretary of Defense 
shall prescribe regulations implementing, a training program 
for child care employees. Those regulations shall apply 
uniformly among the military departments. Subject to paragraph 
(2), satisfactory completion of the training program shall be a 
condition of employment of any person as a child care employee.
    ``(2) Under those regulations, the Secretary shall require 
that each child care employee complete the training program not 
later than six months after the date on which the employee is 
employed as a child care employee.
    ``(3) The training program established under this 
subsection shall cover, at a minimum, training in the 
following:
            ``(A) Early childhood development.
            ``(B) Activities and disciplinary techniques 
        appropriate to children of different ages.
            ``(C) Child abuse prevention and detection.
            ``(D) Cardiopulmonary resuscitation and other 
        emergency medical procedures.
    ``(b) Training and Curriculum Specialists.--(1) The 
Secretary of Defense shall require that at least one employee 
at each military child development center be a specialist in 
training and curriculum development. The Secretary shall ensure 
that such employees have appropriate credentials and 
experience.
    ``(2) The duties of such employees shall include the 
following:
            ``(A) Special teaching activities at the center.
            ``(B) Daily oversight and instruction of other 
        child care employees at the center.
            ``(C) Daily assistance in the preparation of lesson 
        plans.
            ``(D) Assistance in the center's child abuse 
        prevention and detection program.
            ``(E) Advising the director of the center on the 
        performance of other child care employees.
    ``(3) Each employee referred to in paragraph (1) shall be 
an employee in a competitive service position.
    ``(c) Competitive Rates of Pay.--For the purpose of 
providing military child development centers with a qualified 
and stable civilian workforce, employees at a military 
installation who are directly involved in providing child care 
and are paid from nonappropriated funds--
            ``(1) in the case of entry-level employees, shall 
        be paid at rates of pay competitive with the rates of 
        pay paid to other entry-level employees at that 
        installation who are drawn from the same labor pool; 
        and
            ``(2) in the case of other employees, shall be paid 
        at rates of pay substantially equivalent to the rates 
        of pay paid to other employees at that installation 
        with similar training, seniority, and experience.
    ``(d) Employment Preference Program for Military Spouses.--
(1) The Secretary of Defense shall conduct a program under 
which qualified spouses of members of the armed forces shall be 
given a preference in hiring for the position of child care 
employee in a position paid from nonappropriated funds if the 
spouse is among persons determined to be best qualified for the 
position.
    ``(2) A spouse who is provided a preference under this 
subsection at a military child development center may not be 
precluded from obtaining another preference, in accordance with 
section 1794 of this title, in the same geographic area as the 
military child development center.
    ``(e) Competitive Service Position Defined.--In this 
section, the term `competitive service position' means a 
position in the competitive service, as defined in section 
2102(a)(1) of title 5.

``Sec. 1793. Parent fees

    ``(a) In General.--The Secretary of Defense shall prescribe 
regulations establishing fees to be charged parents for the 
attendance of children at military child development centers. 
Those regulations shall be uniform for the military departments 
and shall require that, in the case of children who attend the 
centers on a regular basis, the fees shall be based on family 
income.
    ``(b) Local Waiver Authority.--The Secretary of Defense may 
provide authority to installation commanders, on a case-by-case 
basis, to establish fees for attendance of children at child 
development centers at rates lower than those prescribed under 
subsection (a) if the rates prescribed under subsection (a) are 
not competitive with rates at local non-military child 
development centers.

``Sec. 1794. Child abuse prevention and safety at facilities

    ``(a) Child Abuse Task Force.--The Secretary of Defense 
shall maintain a special task force to respond to allegations 
of widespread child abuse at a military installation. The task 
force shall be composed of personnel from appropriate 
disciplines, including, where appropriate, medicine, 
psychology, and childhood development. In the case of such 
allegations, the task force shall provide assistance to the 
commander of the installation, and to parents at the 
installation, in helping them to deal with such allegations.
    ``(b) National Hotline.--(1) The Secretary of Defense shall 
maintain a national telephone number for persons to use to 
report suspected child abuse or safety violations at a military 
child development center or family home day care site. The 
Secretary shall ensure that such reports may be made 
anonymously if so desired by the person making the report. The 
Secretary shall establish procedures for following up on 
complaints and information received over that number.
    ``(2) The Secretary shall publicize the existence of the 
number.
    ``(c) Assistance From Local Authorities.--The Secretary of 
Defense shall prescribe regulations requiring that, in a case 
of allegations of child abuse at a military child development 
center or family home day care site, the commander of the 
military installation or the head of the task force established 
under subsection (a) shall seek the assistance of local child 
protective authorities if such assistance is available.
    ``(d) Safety Regulations.--The Secretary of Defense shall 
prescribe regulations on safety and operating procedures at 
military child development centers. Those regulations shall 
apply uniformly among the military departments.
    ``(e) Inspections.--The Secretary of Defense shall require 
that each military child development center be inspected not 
less often than four times a year. Each such inspection shall 
be unannounced. At least one inspection a year shall be carried 
out by a representative of the installation served by the 
center, and one inspection a year shall be carried out by a 
representative of the major command under which that 
installation operates.
    ``(f) Remedies for Violations.--(1) Except as provided in 
paragraph (2), any violation of a safety, health, or child 
welfare law or regulation (discovered at an inspection or 
otherwise) at a military child development center shall be 
remedied immediately.
    ``(2) In the case of a violation that is not life 
threatening, the commander of the major command under which the 
installation concerned operates may waive the requirement that 
the violation be remedied immediately for a period of up to 90 
days beginning on the date of the discovery of the violation. 
If the violation is not remedied as of the end of that 90-day 
period, the military child development center shall be closed 
until the violation is remedied. The Secretary of the military 
department concerned may waive the preceding sentence and 
authorize the center to remain open in a case in which the 
violation cannot reasonably be remedied within that 90-day 
period or in which major facility reconstruction is required.

``Sec. 1795. Parent partnerships with child development centers

    ``(a) Parent Boards.--The Secretary of Defense shall 
require that there be established at each military child 
development center a board of parents, to be composed of 
parents of children attending the center. The board shall meet 
periodically with staff of the center and the commander of the 
installation served by the center for the purpose of discussing 
problems and concerns. The board, together with the staff of 
the center, shall be responsible for coordinating the parent 
participation program described in subsection (b).
    ``(b) Parent Participation Programs.--The Secretary of 
Defense shall require the establishment of a parent 
participation program at each military child development 
center. As part of such program, the Secretary of Defense may 
establish fees for attendance of children at such a center, in 
the case of parents who participate in the parent participation 
program at that center, at rates lower than the rates that 
otherwise apply.

``Sec. 1796. Subsidies for family home day care

    ``The Secretary of Defense may use appropriated funds 
available for military child care purposes to provide 
assistance to family home day care providers so that family 
home day care services can be provided to members of the armed 
forces at a cost comparable to the cost of services provided by 
military child development centers. The Secretary shall 
prescribe regulations for the provision of such assistance.

``Sec. 1797. Early childhood education program

    ``The Secretary of Defense shall require that all military 
child development centers meet standards of operation necessary 
for accreditation by an appropriate national early childhood 
programs accrediting body.

``Sec. 1798. Definitions

    ``In this subchapter:
            ``(1) The term `military child development center' 
        means a facility on a military installation (or on 
        property under the jurisdiction of the commander of a 
        military installation) at which child care services are 
        provided for members of the armed forces or any other 
        facility at which such child care services are provided 
        that is operated by the Secretary of a military 
        department.
            ``(2) The term `family home day care' means home-
        based child care services that are provided for members 
        of the armed forces by an individual who (A) is 
        certified by the Secretary of the military department 
        concerned as qualified to provide those services, and 
        (B) provides those services on a regular basis for 
        compensation.
            ``(3) The term `child care employee' means a 
        civilian employee of the Department of Defense who is 
        employed to work in a military child development center 
        (regardless of whether the employee is paid from 
        appropriated funds or nonappropriated funds).
            ``(4) The term `child care fee receipts' means 
        those nonappropriated funds that are derived from fees 
        paid by members of the armed forces for child care 
        services provided at military child development 
        centers.''.
    (2) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part II of subtitle A, of title 10, 
United States Code, are amended by inserting after the item 
relating to chapter 87 the following new item:

``88. Military Family Programs and Military Child Care...........1781''.

    (b) Report on Five-Year Demand for Child Care.--(1) Not 
later than the date of the submission of the budget for fiscal 
year 1997 pursuant to section 1105 of title 31, United States 
Code, the Secretary of Defense shall submit to Congress a 
report on the expected demand for child care by military and 
civilian personnel of the Department of Defense during fiscal 
years 1997 through 2001.
    (2) The report shall include--
            (A) a plan for meeting the expected child care 
        demand identified in the report; and
            (B) an estimate of the cost of implementing that 
        plan.
    (3) The report shall also include a description of methods 
for monitoring family home day care programs of the military 
departments.
    (c) Plan for Implementation of Accreditation Requirement.--
The Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a plan for carrying out the 
requirements of section 1787 of title 10,United States Code, as 
added by subsection (a). The plan shall be submitted not later than 
April 1, 1997.
    (d) Continuation of Delegation of Authority With Respect to 
Hiring Preference for Qualified Military Spouses.--The 
provisions of Executive Order No. 12568, issued October 2, 1986 
(10 U.S.C. 113 note), shall apply as if the reference in that 
Executive order to section 806(a)(2) of the Department of 
Defense Authorization Act of 1986 refers to section 1784 of 
title 10, United States Code, as added by subsection (a).
    (e) Repealer.--The following provisions of law are 
repealed:
            (1) The Military Family Act of 1985 (title VIII of 
        Public Law 99-145; 10 U.S.C. 113 note).
            (2) The Military Child Care Act of 1989 (title XV 
        of Public Law 101-189; 10 U.S.C. 113 note).

SEC. 569. DETERMINATION OF WHEREABOUTS AND STATUS OF MISSING PERSONS.

    (a) Purpose.--The purpose of this section is to ensure that 
any member of the Armed Forces (and any Department of Defense 
civilian employee or contractor employee who serves with or 
accompanies the Armed Forces in the field under orders) who 
becomes missing or unaccounted for is ultimately accounted for 
by the United States and, as a general rule, is not declared 
dead solely because of the passage of time.
    (b) In General.--(1) Part II of subtitle A of title 10, 
United States Code, is amended by inserting after chapter 75 
the following new chapter:

                     ``CHAPTER 76--MISSING PERSONS

``Sec.
``1501. System for accounting for missing persons.
``1502. Missing persons: initial report.
``1503. Actions of Secretary concerned; initial board inquiry.
``1504. Subsequent board of inquiry.
``1505. Further review.
``1506. Personnel files.
``1507. Recommendation of status of death.
``1508. Judicial review.
``1509. Preenactment, special interest cases.
``1510. Applicability to Coast Guard.
``1511. Return alive of person declared missing or dead.
``1512. Effect on State law.
``1513. Definitions.

``Sec. 1501. System for accounting for missing persons

    ``(a) Office for Missing Personnel.--(1) The Secretary of 
Defense shall establish within the Office of the Secretary of 
Defense an office to have responsibility for Department of 
Defense policy relating to missing persons. Subject to the 
authority, direction, and control of the Secretary of Defense, 
the responsibilities of the office shall include--
            ``(A) policy, control, and oversight within the 
        Department of Defense of the entire process for 
        investigation and recovery related to missing persons 
        (including matters related to search, rescue, escape, 
        and evasion); and
            ``(B) coordination for the Department of Defense 
        with other departments and agencies of the United 
        States on all matters concerning missing persons.
    ``(2) In carrying out the responsibilities of the office 
established under this subsection, the head of the office shall 
be responsible for the coordination for such purposes within 
the Department of Defense among the military departments, the 
Joint Staff, and the commanders of the combatant commands.
    ``(3) The office shall establish policies, which shall 
apply uniformly throughout the Department of Defense, for 
personnel recovery (including search, rescue, escape, and 
evasion).
    ``(4) The office shall establish procedures to be followed 
by Department of Defense boards of inquiry, and by officials 
reviewing the reports of such boards, under this chapter.
    ``(b) Uniform DoD Procedures.--(1) The Secretary of Defense 
shall prescribe procedures, to apply uniformly throughout the 
Department of Defense, for--
            ``(A) the determination of the status of persons 
        described in subsection (c); and
            ``(B) for the systematic, comprehensive, and timely 
        collection, analysis, review, dissemination, and 
        periodic update of information related to such persons.
    ``(2) Such procedures may provide for the delegation by the 
Secretary of Defense of any responsibility of the Secretary 
under this chapter to the Secretary of a military department.
    ``(3) Such procedures shall be prescribed in a single 
directive applicable to all elements of the Department of 
Defense.
    ``(4) As part of such procedures, the Secretary may provide 
for the extension, on a case-by-case basis, of any time limit 
specified in section 1502, 1503, or 1504 of this title. Any 
such extension may not be for a period in excess of the period 
with respect to which the extension is provided. Subsequent 
extensions may be provided on the same basis.
    ``(c) Covered Persons.--Section 1502 of this title applies 
in the case of the following persons:
            ``(1) Any member of the armed forces on active duty 
        who becomes involuntarily absent as a result of a 
        hostile action, or under circumstances suggesting that 
        the involuntary absence is a result of a hostile 
        action, and whose status is undetermined or who is 
        unaccounted for.
            ``(2) Any civilian employee of the Department of 
        Defense, and any employee of a contractor of the 
        Department of Defense, who serves with or accompanies 
        the armed forces in the field under orders who becomes 
        involuntarily absent as a result of a hostile action, 
        or under circumstances suggesting that the involuntary 
        absence is a result of a hostile action, and whose 
        status is undetermined or who is unaccounted for.
    ``(d) Primary Next of Kin.--The individual who is primary 
next of kin of any person prescribed in subsection (c) may for 
purposes of this chapter designate another individual to act on 
behalf of that individual as primary next of kin. The Secretary 
concerned shall treat an individual so designated as if the 
individual designated were the primary next of kin for purposes 
of this chapter. A designation under this subsection may be 
revoked at any time by the person who made the designation.
    ``(e) Termination of Applicability of Procedures When 
Missing Person Is Accounted For.--The provisionsof this chapter 
relating to boards of inquiry and to the actions by the Secretary 
concerned on the reports of those boards shall cease to apply in the 
case of a missing person upon the person becoming accounted for or 
otherwise being determined to be in a status other than missing.
    ``(f) Secretary Concerned.--In this chapter, the term 
`Secretary concerned' includes, in the case of a civilian 
employee of the Department of Defense or contractor of the 
Department of Defense, the Secretary of the military department 
or head of the element of the Department of Defense employing 
the employee or contracting with the contractor, as the case 
may be.

``Sec. 1502. Missing persons: initial report

    ``(a) Preliminary Assessment and Recommendation by 
Commander.--After receiving information that the whereabouts 
and status of a person described in section 1501(c) of this 
title is uncertain and that the absence of the person may be 
involuntary, the commander of the unit, facility, or area to or 
in which the person is assigned shall make a preliminary 
assessment of the circumstances. If, as a result of that 
assessment, the commander concludes that the person is missing, 
the commander shall--
            ``(1) recommend that the person be placed in a 
        missing status; and
            ``(2) not later than 48 hours after receiving such 
        information, transmit a report containing that 
        recommendation to the theater component commander with 
        jurisdiction over the missing person in accordance with 
        procedures prescribed under section 1501(b) of this 
        title.
    ``(b) Transmission Through Theater Component Commander.--
Upon reviewing a report under subsection (a) recommending that 
a person be placed in a missing status, the theater component 
commander shall ensure that all necessary actions are being 
taken, and all appropriate assets are being used, to resolve 
the status of the missing person. Not later than 14 days after 
receiving the report, the theater component commander shall 
forward the report to the Secretary of Defense or the Secretary 
concerned in accordance with procedures prescribed under 
section 1501(b) of this title. The theater component commander 
shall include with such report a certification that all 
necessary actions are being taken, and all appropriate assets 
are being used, to resolve the status of the missing person.
    ``(c) Safeguarding and Forwarding of Records.--A commander 
making a preliminary assessment under subsection (a) with 
respect to a missing person shall (in accordance with 
procedures prescribed under section 1501 of this title) 
safeguard and forward for official use any information relating 
to the whereabouts and status of the missing person that 
results from the preliminary assessment or from actions taken 
to locate the person. The theater component commander through 
whom the report with respect to the missing person is 
transmitted under subsection (b) shall ensure that all 
pertinent information relating to the whereabouts and status of 
the missing person that results from the preliminary assessment 
or from actions taken to locate the person is properly 
safeguarded to avoid loss, damage, or modification.

``Sec. 1503. Actions of Secretary concerned; initial board inquiry

    ``(a) Determination by Secretary.--Upon receiving a 
recommendation under section 1502(b) of this title that a 
person be placed in a missing status, the Secretary receiving 
the recommendation shall review the recommendation and, not 
later than 10 days after receiving such recommendation, shall 
appoint a board under this section to conduct an inquiry into 
the whereabouts and status of the person.
    ``(b) Inquiries Involving More Than One Missing Person.--If 
it appears to the Secretary who appoints a board under this 
section that the absence or missing status of two or more 
persons is factually related, the Secretary may appoint a 
single board under this section to conduct the inquiry into the 
whereabouts and status of all such persons.
    ``(c) Composition.--(1) A board appointed under this 
section to inquire into the whereabouts and status of a person 
shall consist of at least one individual described in paragraph 
(2) who has experience with and understanding of military 
operations or activities similar to the operation or activity 
in which the person disappeared.
    ``(2) An individual referred to in paragraph (1) is the 
following:
            ``(A) A military officer, in the case of an inquiry 
        with respect to a member of the armed forces.
            ``(B) A civilian, in the case of an inquiry with 
        respect to a civilian employee of the Department of 
        Defense or of a contractor of the Department of 
        Defense.
    ``(3) An individual may be appointed as a member of a board 
under this section only if the individual has a security 
clearance that affords the individual access to all information 
relating to the whereabouts and status of the missing persons 
covered by the inquiry.
    ``(4) A Secretary appointing a board under this subsection 
shall, for purposes of providing legal counsel to the board, 
assign to the board a judge advocate, or appoint to the board 
an attorney, who has expertise in the law relating to missing 
persons, the determination of death of such persons, and the 
rights of family members and dependents of such persons.
    ``(d) Duties of Board.--A board appointed to conduct an 
inquiry into the whereabouts and status of a missing person 
under this section shall--
            ``(1) collect, develop, and investigate all facts 
        and evidence relating to the disappearance or 
        whereabouts and status of the person;
            ``(2) collect appropriate documentation of the 
        facts and evidence covered by the board's 
        investigation;
            ``(3) analyze the facts and evidence, make findings 
        based on that analysis, and draw conclusions as to the 
        current whereabouts and status of the person; and
            ``(4) with respect to each person covered by the 
        inquiry, recommend to the Secretary who appointed the 
        board that--
                    ``(A) the person be placed in a missing 
                status; or
                    ``(B) the person be declared to have 
                deserted, to be absent without leave, or 
                (subject to the requirements of section 1507 of 
                this title) to be dead.
    ``(e) Board Proceedings.--During the proceedings of an 
inquiry under this section, a board shall--
            ``(1) collect, record, and safeguard all facts, 
        documents, statements, photographs, tapes, messages, 
        maps, sketches, reports, and other information (whether 
        classified or unclassified) relating to the whereabouts 
        and status of each person covered by the inquiry;
            ``(2) gather information relating to actions taken 
        to find the person, including any evidence of the 
        whereabouts and status of the person arising from such 
        actions; and
            ``(3) maintain a record of its proceedings.
    ``(f) Counsel for Missing Person.--(1) The Secretary 
appointing a board to conduct an inquiry under this section 
shall appoint counsel to represent each person covered by the 
inquiry or, in a case covered by subsection (b), one counsel to 
represent all persons covered by the inquiry. Counsel appointed 
under this paragraph may be referred to as `missing person's 
counsel' and represents the interests of the person covered by 
the inquiry (and not any member of the person's family or other 
interested parties).
    ``(2) To be appointed as a missing person's counsel, a 
person must--
            ``(A) have the qualifications specified in section 
        827(b) of this title (article 27(b) of the Uniform Code 
        of Military Justice) for trial counsel or defense 
        counsel detailed for a general court-martial;
            ``(B) have a security clearance that affords the 
        counsel access to all information relating to the 
        whereabouts and status of the person or persons covered 
        by the inquiry; and
            ``(C) have expertise in the law relating to missing 
        persons, the determination of the death of such 
        persons, and the rights of family members and 
        dependents of such persons.
    ``(3) A missing person's counsel--
            ``(A) shall have access to all facts and evidence 
        considered by the board during the proceedings under 
        the inquiry for which the counsel is appointed;
            ``(B) shall observe all official activities of the 
        board during such proceedings;
            ``(C) may question witnesses before the board; and
            ``(D) shall monitor the deliberations of the board.
    ``(4) A missing person's counsel shall assist the board in 
ensuring that all appropriate information concerning the case 
is collected, logged, filed, and safeguarded.
    ``(5) A missing person's counsel shall review the report of 
the board under subsection (h) and submit to the Secretary 
concerned who appointed the board an independent review of that 
report. That review shall be made an official part of the 
record of the board.
    ``(g) Access to Proceedings.--The proceedings of a board 
during an inquiry under this section shall be closed to the 
public (including, with respect to the person covered by the 
inquiry, the primary next of kin, other members of the 
immediate family, and any other previously designated person of 
the person).
    ``(h) Report.--(1) A board appointed under this section 
shall submit to the Secretary who appointed the board a report 
on the inquiry carried out by the board. The report shall 
include--
            ``(A) a discussion of the facts and evidence 
        considered by the board in the inquiry;
            ``(B) the recommendation of the board under 
        subsection (d) with respect to each person covered by 
        the report; and
            ``(C) disclosure of whether classified documents 
        and information were reviewed by the board or were 
        otherwise used by the board in forming recommendations 
        under subparagraph (B).
    ``(2) A board shall submit a report under this subsection 
with respect to the inquiry carried out by the board not later 
than 30 days after the date of the appointment of the board to 
carry out the inquiry. The report may include a classified 
annex.
    ``(3) The Secretary of Defense shall prescribe procedures 
for the release of a report submitted under this subsection 
with respect to a missing person. Such procedures shall provide 
that the report may not be made public (except as provided for 
in subsection (j)) until one year after the date on which the 
report is submitted.
    ``(i) Determination by Secretary.--(1) Not later than 30 
days after receiving a report from a board under subsection 
(h), the Secretary receiving the report shall review the 
report.
    ``(2) In reviewing a report under paragraph (1), the 
Secretary shall determine whether or not the report is complete 
and free of administrative error. If the Secretary determines 
that the report is incomplete, or that the report is not free 
of administrative error, the Secretary may return the report to 
the board for further action on the report by the board.
    ``(3) Upon a determination by the Secretary that a report 
reviewed under this subsection is complete and free of 
administrative error, the Secretary shall make a determination 
concerning the status of each person covered by the report, 
including whether the person shall--
            ``(A) be declared to be missing;
            ``(B) be declared to have deserted;
            ``(C) be declared to be absent without leave; or
            ``(D) be declared to be dead.
    ``(j) Report to Family Members and Other Interested 
Persons.--Not later than 30 days after the date on which the 
Secretary concerned makes a determination of the status of a 
person under subsection (i), the Secretary shall take 
reasonable actions to--
            ``(1) provide to the primary next of kin, the other 
        members of the immediate family, and any other 
        previously designated person of the person--
                    ``(A) an unclassified summary of the unit 
                commander's report with respect to the person 
                under section 1502(a) of this title; and
                    ``(B) the report of the board (including 
                the names of the members of the board) under 
                subsection (h); and
            ``(2) inform each individual referred to in 
        paragraph (1) that the United States will conduct a 
        subsequent inquiry into the whereabouts and status of 
        the person on or about one year after the date of the 
        first official notice of the disappearance of the 
        person, unless information becomes available sooner 
        that may result in a change in status of the person.
    ``(k) Treatment of Determination.--Any determination of the 
status of a missing person under subsection (i) shall be 
treated as the determination of the status of the person by all 
departments and agencies of the United States.

``Sec. 1504. Subsequent board of inquiry

    ``(a) Additional Board.--If information that may result in 
a change of status of a person covered by a determination under 
section 1503(i) of this title becomes available within one year 
after the date of the transmission of a report with respect to 
the person under section 1502(a)(2) of this title, the 
Secretary concerned shall appoint a board under this section to 
conduct an inquiry into the information.
    ``(b) Date of Appointment.--The Secretary concerned shall 
appoint a board under this section to conduct an inquiry into 
the whereabouts and status of a missing person on or about one 
year after the date of the transmission of a report concerning 
the person under section 1502(a)(2) of this title.
    ``(c) Combined Inquiries.--If it appears to the Secretary 
concerned that the absence or status of two or more persons is 
factually related, the Secretary may appoint one board under 
this section to conduct the inquiry into the whereabouts and 
status of such persons.
    ``(d) Composition.--(1) A board appointed under this 
section shall be composed of at least three members as follows:
            ``(A) In the case of a board that will inquire into 
        the whereabouts and status of one or more members of 
        the armed forces (and no civilians described in 
        subparagraph (B)), the board shall be composed of 
        officers having the grade of major or lieutenant 
        commander or above.
            ``(B) In the case of a board that will inquire into 
        the whereabouts and status of one or more civilian 
        employees of the Department of Defense or contractors 
        of the Department of Defense (and no members of the 
        armed forces), the board shall be composed of--
                    ``(i) not less than three employees of the 
                Department of Defense whose rate of annual pay 
                is equal to or greater than the rate of annual 
                pay payable for grade GS-13 of the General 
                Schedule under section 5332 of title 5; and
                    ``(ii) such members of the armed forces as 
                the Secretary considers advisable.
            ``(C) In the case of a board that will inquire into 
        the whereabouts and status of both one or more members 
        of the armed forces and one or more civilians described 
        in subparagraph (B)--
                    ``(i) the board shall include at least one 
                officer described in subparagraph (A) and at 
                least one employee of the Department of Defense 
                described in subparagraph (B)(i); and
                    ``(ii) the ratio of such officers to such 
                employees on the board shall be roughly 
                proportional to the ratio of the number of 
                members of the armed forces who are subjects of 
                the board's inquiry to the number of civilians 
                who are subjects of the board's inquiry.
    ``(2) The Secretary concerned shall designate one member of 
a board appointed under this section as president of the board. 
The president of the board shall have a security clearance that 
affords the president access to all information relating to the 
whereabouts and status of each person covered by the inquiry.
    ``(3) One member of each board appointed under this 
subsection shall be an individual who--
            ``(A) has an occupational specialty similar to that 
        of one or more of the persons covered by the inquiry; 
        and
            ``(B) has an understanding of and expertise in the 
        type of official activities that one or more such 
        persons were engaged in at the time such person or 
        persons disappeared.
    ``(4) The Secretary who appoints a board under this 
subsection shall, for purposes of providing legal counsel to 
the board, assign to the board a judge advocate, or appoint to 
the board an attorney, with the same qualifications as 
specified in section 1503(c)(4) of this title.
    ``(e) Duties of Board.--A board appointed under this 
section to conduct an inquiry into the whereabouts and status 
of a person shall--
            ``(1) review the reports with respect to the person 
        transmitted under section 1502(a)(2) of this title and 
        submitted under section 1503(h) of this title;
            ``(2) collect and evaluate any document, fact, or 
        other evidence with respect to the whereabouts and 
        status of the person that has become available since 
        the determination of the status of the person under 
        section 1503 of this title;
            ``(3) draw conclusions as to the whereabouts and 
        status of the person;
            ``(4) determine on the basis of the activities 
        under paragraphs (1) and (2) whether the status of the 
        person should be continued or changed; and
            ``(5) submit to the Secretary concerned a report 
        describing the findings and conclusions of the board, 
        together with a recommendation for a determination by 
        the Secretary concerning the whereabouts and status of 
        the person.
    ``(f) Counsel for Missing Persons.--(1) When the Secretary 
concerned appoints a board to conduct an inquiry under this 
section, the Secretary shall appoint counsel to represent each 
person covered by the inquiry.
    ``(2) A person appointed as counsel under this subsection 
shall meet the qualifications and have the duties set forth in 
section 1503(f) of this title for a missing person's counsel 
appointed under that section.
    ``(3) The review of the report of a board on an inquiry 
that is submitted by such counsel shall be made an official 
part of the record of the board with respect to the inquiry.
    ``(g) Attendance of Family Members and Certain Other 
Interested Persons at Proceedings.--(1) With respect to any 
person covered by an inquiry under this section, the primary 
next of kin, other members of the immediate family, and any 
other previously designated person of the person may attend the 
proceedings of the board during the inquiry.
    ``(2) The Secretary concerned shall take reasonable actions 
to notify each individual referred to in paragraph (1) of the 
opportunity to attend the proceedings of a board. Such notice 
shall be provided not less than 60 days before the first 
meeting of the board.
    ``(3) An individual who receives notice under paragraph (2) 
shall notify the Secretary of the intent, if any, of that 
individual to attend the proceedings of the board not later 
than 21 days after the date on which the individual receives 
the notice.
    ``(4) Each individual who notifies the Secretary under 
paragraph (3) of the individual's intent to attend the 
proceedings of the board--
            ``(A) in the case of an individual who is the 
        primary next of kin or the previously designated 
        person, may attend the proceedings of the board with 
        private counsel;
            ``(B) shall have access to the personnel file of 
        the missing person, to unclassified reports, if any, of 
        the board appointed under section 1503 of this title to 
        conduct the inquiry into the whereabouts and status of 
        the person, and to any other unclassified information 
        or documents relating to the whereabouts and status of 
        the person;
            ``(C) shall be afforded the opportunity to present 
        information at the proceedings of the board that such 
        individual considers to be relevant to those 
        proceedings; and
            ``(D) subject to paragraph (5), shall be given the 
        opportunity to submit in writing an objection to any 
        recommendation of the board under subsection (i) as to 
        the status of the missing person.
    ``(5)(A) Individuals who wish to file objections under 
paragraph (4)(D) to any recommendation of the board shall--
            ``(i) submit a letter of intent to the president of 
        the board not later than 15 days after the date on 
        which the recommendations are made; and
            ``(ii) submit to the president of the board the 
        objections in writing not later than 30 days after the 
        date on which the recommendations are made.
    ``(B) The president of a board shall include any objections 
to a recommendation of the board that are submitted to the 
president of the board under subparagraph (A) in the report of 
the board containing the recommendation under subsection (i).
    ``(6) An individual referred to in paragraph (1) who 
attends the proceedings of a board under this subsection shall 
not be entitled to reimbursement by the United States for any 
costs (including travel, lodging, meals, local transportation, 
legal fees, transcription costs, witness expenses, and other 
expenses) incurred by that individual in attending such 
proceedings.
    ``(h) Availability of Information to Boards.--(1) In 
conducting proceedings in an inquiry under this section, a 
board may secure directly from any department or agency of the 
United States any information that the board considers 
necessary in order to conduct the proceedings.
    ``(2) Upon written request from the president of a board, 
the head of a department or agency of the United States shall 
release information covered by the request to the board. In 
releasing such information, the head of the department or 
agency shall--
            ``(A) declassify to an appropriate degree 
        classified information; or
            ``(B) release the information in a manner not 
        requiring the removal of markings indicating the 
        classified nature of the information.
    ``(3)(A) If a request for information under paragraph (2) 
covers classified information that cannot be declassified, or 
if the classification markings cannot be removed before release 
from the information covered by the request, or if the material 
cannot be summarized in a manner that prevents the release of 
classified information, the classified information shall be 
made available only to the president of the board making the 
request and the counsel for the missing person appointed under 
subsection (f).
    ``(B) The president of a board shall close to persons who 
do not have appropriate security clearances the proceeding of 
the board at which classified information is discussed. 
Participants at a proceeding of a board at which classified 
information is discussed shall comply with all applicable laws 
and regulations relating to the disclosure of classified 
information. The Secretary concerned shall assist the president 
of a board in ensuring that classified information is not 
compromised through board proceedings.
    ``(i) Recommendation on Status.--(1) Upon completion of an 
inquiry under this subsection, a board shall make a 
recommendation as to the current whereabouts and status of each 
missing person covered by the inquiry.
    ``(2) A board may not recommend under paragraph (1) that a 
person be declared dead unless in making the recommendation the 
board complies with section 1507 of this title.
    ``(j) Report.--A board appointed under this section shall 
submit to the Secretary concerned a report on the inquiry 
carried out by the board, together with the evidence considered 
by the board during the inquiry. The report may include a 
classified annex.
    ``(k) Actions by Secretary Concerned.--(1) Not later than 
30 days after the receipt of a report from a board under 
subsection (j), the Secretary shall review--
            ``(A) the report;
            ``(B) the review of the report submitted to the 
        Secretary under subsection (f)(3) by the counsel for 
        each person covered by the report; and
            ``(C) the objections, if any, to the report 
        submitted to the president of the board under 
        subsection (g)(5).
    ``(2) In reviewing a report under paragraph (1) (including 
the objections described in subparagraph (C) of that 
paragraph), the Secretary concerned shall determine whether or 
not the report is complete and free of administrative error. If 
the Secretary determines that the report is incomplete, or that 
the report is not free of administrative error, the Secretary 
may return the report to the board for further action on the 
report by the board.
    ``(3) Upon a determination by the Secretary that a report 
reviewed under this subsection is complete and free of 
administrative error, the Secretary shall make a determination 
concerning the status of each person covered by the report.
    ``(l) Report to Family Members and Other Interested 
Persons.--Not later than 60 days after the date on which the 
Secretary concerned makes a determination with respect to a 
missing person under subsection (k), the Secretary shall--
            ``(1) provide the report reviewed by the Secretary 
        in making the determination to the primary next of kin, 
        the other members of the immediate family, and any 
        other previously designated person of the person; and
            ``(2) in the case of a person who continues to be 
        in a missing status, inform each individual referred to 
        in paragraph (1) that the United States will conduct a 
        further investigation into the whereabouts and status 
        of the person as specified in section 1505 of this 
        title.
    ``(m) Treatment of Determination.--Any determination of the 
status of a missing person under subsection (k) shall supersede 
the determination of the status of the person under section 
1503 of this title and shall be treated as the determination of 
the status of the person by all departments and agencies of the 
United States.

``Sec. 1505. Further review

    ``(a) Subsequent Review.--The Secretary concerned shall 
conduct subsequent inquiries into the whereabouts and status of 
any person determined by the Secretary under section 1504 of 
this title to be in a missing status.
    ``(b) Frequency of Subsequent Reviews.--(1) In the case of 
a missing person who was last known to be alive or who was last 
suspected of being alive, the Secretary shall appoint a board 
to conduct an inquiry with respect to a person under this 
subsection--
            ``(A) on or about three years after the date of the 
        initial report of the disappearance of the person under 
        section 1502(a) of this title; and
            ``(B) not later than every three years thereafter.
    ``(2) In addition to appointment of boards under paragraph 
(1), the Secretary shall appoint a board to conduct an inquiry 
with respect to a missing person under this subsection upon 
receipt of information that could result in a change of status 
of the missing person. When the Secretary appoints a board 
under this paragraph, the time for subsequent appointments of a 
board under paragraph (1)(B) shall be determined from the date 
of the receipt of such information.
    ``(3) The Secretary is not required to appoint a board 
under paragraph (1) with respect to the disappearance of any 
person--
            ``(A) more than 30 years after the initial report 
        of the disappearance of the missing person required by 
        section 1502 of this title; or
            ``(B) if, before the end of such 30-year period, 
        the missing person is accounted for.
    ``(c) Action Upon Discovery or Receipt of Information.--(1) 
Whenever any United States intelligence agency or other element 
of the Government finds or receives information that may be 
related to a missing person, the information shall promptly be 
forwarded to the office established under section 1501 of this 
title.
    ``(2) Upon receipt of information under paragraph (1), the 
head of the office established under section 1501 of this title 
shall as expeditiously as possible ensure that the information 
is added to the appropriate case file for that missing person 
and notify (A) the designated missing person's counsel for that 
person, and (B) the primary next of kin and any previously 
designated person for the missing person of the existence of 
that information.
    ``(3) The head of the office established under section 1501 
of this title, with the advice of the missing person's counsel 
notified under paragraph (2), shall determine whether the 
information is significant enough to require a board review 
under this section.
    ``(d) Conduct of Proceedings.--If it is determined that 
such a board should be appointed, the appointment of, and 
activities before, a board appointed under this section shall 
be governed by the provisions of section 1504 of this title 
with respect to a board appointed under that section.

``Sec. 1506. Personnel files

    ``(a) Information in Files.--Except as provided in 
subsections (b), (c), and (d), the Secretary concerned shall, 
to the maximum extent practicable, ensure that the personnel 
file of a missing person contains all information in the 
possession of the United States relating to the disappearance 
and whereabouts and status of the person.
    ``(b) Classified Information.--The Secretary concerned may 
withhold classified information from a personnel file under 
this section. If the Secretary concerned withholds classified 
information from a personnel file, the Secretary shall ensure 
that the file contains the following:
            ``(1) A notice that the withheld information 
        exists.
            ``(2) A notice of the date of the most recent 
        review of the classification of the withheld 
        information.
    ``(c) Protection of Privacy.--The Secretary concerned shall 
maintain personnel files under this section, and shall permit 
disclosure of or access to such files, in accordance with the 
provisions of section 552a of title 5 and with other applicable 
laws and regulations pertaining to the privacy of the persons 
covered by the files.
    ``(d) Privileged Information.--(1) The Secretary concerned 
shall withhold from personnel files under this section, as 
privileged information, debriefing reports provided by missing 
persons returned to United States control which are 
obtainedunder a promise of confidentiality made for the purpose of 
ensuring the fullest possible disclosure of information.
    ``(2) If a debriefing report contains non-derogatory 
information about the status and whereabouts of a missing 
person other than the source of the debriefing report, the 
Secretary concerned shall prepare an extract of the non-
derogatory information. That extract, following a review by the 
source of the debriefing report, shall be placed in the 
personnel file of the missing person in such a manner as to 
protect the identity of the source providing the information.
    ``(3) Whenever the Secretary concerned withholds a 
debriefing report from a personnel file under this subsection, 
the Secretary shall ensure that the file contains a notice that 
withheld information exists.
    ``(e) Wrongful Withholding.--Except as provided in 
subsections (a) through (d), any person who knowingly and 
willfully withholds from the personnel file of a missing person 
any information relating to the disappearance or whereabouts 
and status of a missing person shall be fined as provided in 
title 18 or imprisoned not more than one year, or both.
    ``(f) Availability of Information.--The Secretary concerned 
shall, upon request, make available the contents of the 
personnel file of a missing person to the primary next of kin, 
the other members of the immediate family, or any other 
previously designated person of the person.

``Sec. 1507. Recommendation of status of death

    ``(a) Requirements Relating to Recommendation.--A board 
appointed under section 1503, 1504, or 1505 of this title may 
not recommend that a person be declared dead unless--
            ``(1) credible evidence exists to suggest that the 
        person is dead;
            ``(2) the United States possesses no credible 
        evidence that suggests that the person is alive; and
            ``(3) representatives of the United States--
                    ``(A) have made a complete search of the 
                area where the person was last seen (unless, 
                after making a good faith effort to obtain 
                access to such area, such representatives are 
                not granted such access); and
                    ``(B) have examined the records of the 
                government or entity having control over the 
                area where the person was last seen (unless, 
                after making a good faith effort to obtain 
                access to such records, such representatives 
                are not granted such access).
    ``(b) Submittal of Information on Death.--If a board 
appointed under section 1503, 1504, or 1505 of this title makes 
a recommendation that a missing person be declared dead, the 
board shall include in the report of the board with respect to 
the person under that section the following:
            ``(1) A detailed description of the location where 
        the death occurred.
            ``(2) A statement of the date on which the death 
        occurred.
            ``(3) A description of the location of the body, if 
        recovered.
            ``(4) If the body has been recovered and is not 
        identifiable through visual means, a certification by a 
        practitioner of an appropriate forensic science that 
        the body recovered is that of the missing person.

``Sec. 1508. Judicial review

    ``(a) Right of Review.--A person who is the primary next of 
kin (or the previously designated person) of a person who is 
the subject of a finding described in subsection (b) may obtain 
judicial review in a United States district court of that 
finding, but only on the basis of a claim that there is 
information that could affect the status of the missing 
person's case that was not adequately considered during the 
administrative review process under this chapter. Any such 
review shall be as provided in section 706 of title 5.
    ``(b) Findings for Which Judicial Review May Be Sought.--
Subsection (a) applies to the following findings:
            ``(1) A finding by a board appointed under section 
        1504 or 1505 of this title that a missing person is 
        dead.
            ``(2) A finding by a board appointed under section 
        1509 of this title that confirms that a missing person 
        formerly declared dead is in fact dead.
    ``(c) Subsequent Review.--Appeals from a decision of the 
district court shall be taken to the appropriate United States 
court of appeals and to the Supreme Court as provided by law.

``Sec. 1509. Preenactment, special interest cases

    ``(a) Review of Status.--In the case of an unaccounted for 
person covered by section 1501(c) of this title who is 
described in subsection (b), if new information that could 
change the status of that person is found or received by a 
United States intelligence agency, by a Department of Defense 
agency, or by a person specified in section 1504(g) of this 
title, that information shall be provided to the Secretary of 
Defense with a request that the Secretary evaluate the 
information in accordance with sections 1505(c) and 1505(d) of 
this title.
    ``(b) Cases Eligible for Review.--The cases eligible for 
review under this section are the following:
            ``(1) With respect to the Korean conflict, any 
        unaccounted for person who was classified as a prisoner 
        of war or as missing in action during that conflict and 
        who (A) was known to be or suspected to be alive at the 
        end of that conflict, or (B) was classified as missing 
        in action and whose capture was possible.
            ``(2) With respect to the Cold War, any unaccounted 
        for person who was engaged in intelligence operations 
        (such as aerial `ferret' reconnaissance missions over 
        and around the Soviet Union and China) during the Cold 
        War.
            ``(3) With respect to the Indochina war era, any 
        unaccounted for person who was classified as a prisoner 
        of war or as missing in action during the Indochina 
        conflict.
    ``(c) Special Rule for Persons Classified as `KIA/BNR'.--In 
the case of a person described in subsection (b) who was 
classified as `killed in action/body not recovered', the case 
of that person may be reviewed under this section only if the 
new information referred to in subsection (a) is compelling.
    ``(d) Definitions.--In this section:
            ``(1) The term `Korean conflict' means the period 
        beginning on June 27, 1950, and ending on January 31, 
        1955.
            ``(2) The term `Cold War' means the period 
        beginning on September 2, 1945, and ending on August 
        21, 1991.
            ``(3) The term `Indochina war era' means the period 
        beginning on July 8, 1959, and ending on May 15, 1975.

``Sec. 1510. Applicability to Coast Guard

    ``(a) Designated Officer To Have Responsibility.--The 
Secretary of Transportation shall designate an officer of the 
Department of Transportation to have responsibility within the 
Department of Transportation for matters relating to missing 
persons who are members of the Coast Guard.
    ``(b) Procedures.--The Secretary of Transportation shall 
prescribe procedures for the determination of the status of 
persons described in section 1501(c) of this title who are 
members of the Coast Guard and for the collection, analysis, 
review, and update of information on such persons. To the 
maximum extent practicable, the procedures prescribed under 
this section shall be similar to the procedures prescribed by 
the Secretary of Defense under section 1501(b) of this title.

``Sec. 1511. Return alive of person declared missing or dead

    ``(a) Pay and Allowances.--Any person (except for a person 
subsequently determined to have been absent without leave or a 
deserter) in a missing status or declared dead under subchapter 
VII of chapter 55 of title 5 or chapter 10 of title 37 or by a 
board appointed under this chapter who is found alive and 
returned to the control of the United States shall be paid for 
the full time of the absence of the person while given that 
status or declared dead under the law and regulations relating 
to the pay and allowances of persons returning from a missing 
status.
    ``(b) Effect on Gratuities Paid as a Result of Status.--
Subsection (a) shall not be interpreted to invalidate or 
otherwise affect the receipt by any person of a death gratuity 
or other payment from the United States on behalf of a person 
referred to in subsection (a) before the date of the enactment 
of this chapter.

``Sec. 1512. Effect on State law

    ``(a) Nonpreemption of State Authority.--Nothing in this 
chapter shall be construed to invalidate or limit the power of 
any State court or administrative entity, or the power of any 
court or administrative entity of any political subdivision 
thereof, to find or declare a person dead for purposes of such 
State or political subdivision.
    ``(b) State Defined.--In this section, the term `State' 
includes the District of Columbia, the Commonwealth of Puerto 
Rico, and any territory or possession of the United States.

``Sec. 1513. Definitions

    ``In this chapter:
            ``(1) The term `missing person' means--
                    ``(A) a member of the Armed Forces on 
                active duty who is in a missing status; or
                    ``(B) a civilian employee of the Department 
                of Defense or an employee of a contractor of 
                the Department of Defense who serves with or 
                accompanies the Armed Forces in the field under 
                orders and who is in a missing status.
            ``(2) The term `missing status' means the status of 
        a missing person who is determined to be absent in a 
        category of any of the following:
                    ``(A) Missing.
                    ``(B) Missing in action.
                    ``(C) Interned in a foreign country.
                    ``(D) Captured.
                    ``(E) Beleaguered.
                    ``(F) Besieged.
                    ``(G) Detained in a foreign country against 
                that person's will.
            ``(3) The term `accounted for', with respect to a 
        person in a missing status, means that--
                    ``(A) the person is returned to United 
                States control alive;
                    ``(B) the remains of the person are 
                recovered and, if not identifiable through 
                visual means as those of the missing person, 
                are identified as those of the missing person 
                by a practitioner of an appropriate forensic 
                science; or
                    ``(C) credible evidence exists to support 
                another determination of the person's status.
            ``(4) The term `primary next of kin', in the case 
        of a missing person, means the individual authorized to 
        direct disposition of the remains of the person under 
        section 1482(c) of this title.
            ``(5) The term `member of the immediate family', in 
        the case of a missing person, means the following:
                    ``(A) The spouse of the person.
                    ``(B) A natural child, adopted child, 
                stepchild, or illegitimate child (if 
                acknowledged by the person or parenthood has 
                been established by a court of competent 
                jurisdiction) of the person, except that if 
                such child has not attained the age of 18 
                years, the term means a surviving parent or 
                legal guardian of such child.
                    ``(C) A biological parent of the person, 
                unless legal custody of the person by the 
                parent has been previously terminated by reason 
                of a court decree or otherwise under law and 
                not restored.
                    ``(D) A brother or sister of the person, if 
                such brother or sister has attained the age of 
                18 years.
                    ``(E) Any other blood relative or adoptive 
                relative of the person, if such relative was 
                given sole legal custody of the person by a 
                court decree or otherwise under law before the 
                person attained the age of 18 years and such 
                custody was not subsequently terminated before 
                that time.
            ``(6) The term `previously designated person', in 
        the case of a missing person, means an individual 
        designated by the person under section 655 of this 
        title for purposes of this chapter.
            ``(7) The term `classified information' means any 
        information the unauthorized disclosure of which (as 
        determined under applicable law and regulations) could 
        reasonably be expected to damage the national security.
            ``(8) The term `theater component commander' means, 
        with respect to any of the combatant commands, an 
        officer of any of the armed forces who (A) is commander 
        of all forces of that armed force assigned to that 
        combatant command, and (B) is directly subordinate to 
        the commander of the combatant command.''.
    (2) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part II of subtitle A, of title 10, 
United States Code, are amended by inserting after the item 
relating to chapter 75 the following new item:

``76. Missing Persons............................................1501''.

    (c) Conforming Amendments.--Chapter 10 of title 37, United 
States Code, is amended as follows:
            (1) Section 555 is amended--
                    (A) in subsection (a), by striking out 
                ``When a member'' and inserting in lieu thereof 
                ``Except as provided in subsection (d), when a 
                member''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(d) This section does not apply in a case to which 
section 1502 of title 10 applies.''.
            (2) Section 552 is amended--
                    (A) in subsection (a), by striking out 
                ``for all purposes,'' in the second sentence of 
                the matter following paragraph (2) and all that 
                follows through the end of the sentence and 
                inserting in lieu thereof ``for all 
                purposes.'';
                    (B) in subsection (b), by inserting ``or 
                under chapter 76 of title 10'' before the 
                period at the end; and
                    (C) in subsection (e), by inserting ``or 
                under chapter 76 of title 10'' after ``section 
                555 of this title''.
            (3) Section 553 is amended--
                    (A) in subsection (f), by striking out 
                ``the date the Secretary concerned receives 
                evidence that'' and inserting in lieu thereof 
                ``the date on which, in a case covered by 
                section 555 of this title, the Secretary 
                concerned receives evidence, or, in a case 
                covered by chapter 76 of title 10, the 
                Secretary concerned determines pursuant to that 
                chapter, that''; and
                    (B) in subsection (g), by inserting ``or 
                under chapter 76 of title 10'' after ``section 
                555 of this title''.
            (4) Section 556 is amended--
                    (A) in subsection (a), by inserting after 
                paragraph (7) the following:
``Paragraphs (1), (5), (6), and (7) only apply with respect to 
a case to which section 555 of this title applies.'';
                    (B) in subsection (b), by inserting ``, in 
                a case to which section 555 of this title 
                applies,'' after ``When the Secretary 
                concerned''; and
                    (C) in subsection (h)--
                            (i) in the first sentence, by 
                        striking out ``status'' and inserting 
                        in lieu thereof ``pay''; and
                            (ii) in the second sentence, by 
                        inserting ``in a case to which section 
                        555 of this title applies'' after 
                        ``under this section''.
    (d) Designation of Persons Having Interest in Status of 
Service Members.--(1) Chapter 37 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 655. Designation of persons having interest in status of a 
                    missing member

    ``(a) The Secretary concerned shall, upon the enlistment or 
appointment of a person in the armed forces, require that the 
person specify in writing the person or persons, if any, other 
than that person's primary next of kin or immediate family, to 
whom information on the whereabouts and status of the member 
shall be provided if such whereabouts and status are 
investigated under chapter 76 of this title. The Secretary 
shall periodically, and whenever the member is deployed as part 
of a contingency operation or in other circumstances specified 
by the Secretary, require that such designation be reconfirmed, 
or modified, by the member.
    ``(b) The Secretary concerned shall, upon the request of a 
member, permit the member to revise the person or persons 
specified by the member under subsection (a) at any time. Any 
such revision shall be in writing.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``655. Designation of persons having interest in status of a missing 
          member.''.

    (e) Accounting for Civilian Employee and Contractors of the 
United States.--(1) The Secretary of State shall carry out a 
comprehensive study of the provisions of subchapter VII of 
chapter 55 of title 5, United States Code (commonly referred to 
as the ``Missing Persons Act of 1942'') (5 U.S.C. 5561 et seq.) 
and any other law or regulation establishing procedures for the 
accounting for of civilian employees of the United States or 
contractors of the United States who serve with or accompany 
the Armed Forces in the field. The purpose of the study shall 
be to determine the means, if any, by which those procedures 
may be improved.
    (2) The Secretary of State shall carry out the study 
required under paragraph (1) in consultation with the Secretary 
of Defense, the Secretary of Transportation, the Director of 
Central Intelligence, and the heads of such other departments 
and agencies of the United States as the President designates 
for that purpose.
    (3) In carrying out the study, the Secretary of State shall 
examine the procedures undertaken when a civilian employee 
referred to in paragraph (1) becomes involuntarily absent as a 
result of a hostile action, or under circumstances suggesting 
that the involuntary absence is a result of a hostile action, 
and whose status is undetermined or who is unaccounted for, 
including procedures for--
            (A) search and rescue for the employee;
            (B) determining the status of the employee;
            (C) reviewing and changing the status of the 
        employee;
            (D) determining the rights and benefits accorded to 
        the family of the employee; and
            (E) maintaining and providing appropriate access to 
        the records of the employee and the investigation into 
        the status of the employee.
    (4) Not later than one year after the date of the enactment 
of this Act, the Secretary of State shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report on 
the study carried out by the Secretary under this subsection. 
The report shall include the recommendations, if any, of the 
Secretary for legislation to improve the procedures covered by 
the study.

SEC. 570. ASSOCIATE DIRECTOR OF CENTRAL INTELLIGENCE FOR MILITARY 
                    SUPPORT.

    Section 102 of the National Security Act of 1947 (50 U.S.C. 
403) is amended by adding at the end the following:
    ``(e) In the event that neither the Director nor Deputy 
Director of Central Intelligence is a commissioned officer of 
the Armed Forces, a commissioned officer of the Armed Forces 
appointed to the position of Associate Director of Central 
Intelligence for Military Support, while serving in such 
position, shall not be counted against the numbers and 
percentages of commissioned officers of the rank and grade of 
such officer authorized for the armed force of which such 
officer is a member.''.

      Subtitle G--Support for Non-Department of Defense Activities

SEC. 571. REPEAL OF CERTAIN CIVIL-MILITARY PROGRAMS.

    (a) Repeal of Civil-Military Cooperative Action Program.--
The following provisions of law are repealed:
            (1) Section 410 of title 10, United States Code.
            (2) Section 1081(a) of the National Defense 
        Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 10 U.S.C. 410 note).
    (b) Repeal of Related Provision.--Section 1045 of the 
National Defense Authorization Act for Fiscal Year 1993 (Public 
Law 102-484; 10 U.S.C. 410 note), relating to a pilot outreach 
program to reduce demand for illegal drugs, is repealed.
    (c) Technical and Conforming Amendments.--Chapter 20 of 
title 10, United States Code, is amended--
            (1) by striking out the table of subchapters after 
        the chapter heading;
            (2) by striking out the subchapter heading for 
        subchapter I; and
            (3) by striking out the subchapter heading for 
        subchapter II and the table of sections following that 
        subchapter heading.

SEC. 572. TRAINING ACTIVITIES RESULTING IN INCIDENTAL SUPPORT AND 
                    SERVICES FOR ELIGIBLE ORGANIZATIONS AND ACTIVITIES 
                    OUTSIDE THE DEPARTMENT OF DEFENSE.

    (a) In General.--(1) Chapter 101 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2012. Support and services for eligible organizations and 
                    activities outside Department of Defense

    ``(a) Authority To Provide Services and Support.--Under 
regulations prescribed by the Secretary of Defense, the 
Secretary of a military department may in accordance with this 
section authorize units or individual members of the armed 
forces under that Secretary's jurisdiction to provide support 
and services to non-Department of Defense organizations and 
activities specified in subsection (e), but only if--
            ``(1) such assistance is authorized by a provision 
        of law (other than this section); or
            ``(2) the provision of such assistance is 
        incidental to military training.
    ``(b) Scope of Covered Activities Subject to Section.--This 
section does not--
            ``(1) apply to the provision by the Secretary 
        concerned, under regulations prescribed by the 
        Secretary of Defense, of customary community relations 
        and public affairs activities conducted in accordance 
        with Department of Defense policy; or
            ``(2) prohibit the Secretary concerned from 
        encouraging members of the armed forces under the 
        Secretary's jurisdiction to provide volunteer support 
        for community relations activities under regulations 
        prescribed by the Secretary of Defense.
    ``(c) Requirement for Specific Request.--Assistance under 
subsection (a) may only be provided if--
            ``(1) the assistance is requested by a responsible 
        official of the organization to which the assistance is 
        to be provided; and
            ``(2) the assistance is not reasonably available 
        from a commercial entity or (if so available) the 
        official submitting the request for assistance 
        certifies that the commercial entity that would 
        otherwise provide such services has agreed to the 
        provision of such services by the armed forces.
    ``(d) Relationship to Military Training.--(1) Assistance 
under subsection (a) may only be provided if the following 
requirements are met:
            ``(A) The provision of such assistance--
                    ``(i) in the case of assistance by a unit, 
                will accomplish valid unit training 
                requirements; and
                    ``(ii) in the case of assistance by an 
                individual member, will involve tasks directly 
                related to the specific military occupational 
                specialty of the member.
            ``(B) The provision of such assistance will not 
        adversely affect the quality of training or otherwise 
        interfere with the ability of a member or unit of the 
        armed forces to perform the military functions of the 
        member or unit.
            ``(C) The provision of such assistance will not 
        result in a significant increase in the cost of the 
        training.
    ``(2) Subparagraph (A)(i) of paragraph (1) does not apply 
in a case in which the assistance to be provided consists 
primarily of military manpower and the total amount of such 
assistance in the case of a particular project does not exceed 
100 man-hours.
    ``(e) Eligible Entities.--The following organizations and 
activities are eligible for assistance under this section:
            ``(1) Any Federal, regional, State, or local 
        governmental entity.
            ``(2) Youth and charitable organizations specified 
        in section 508 of title 32.
            ``(3) Any other entity as may be approved by the 
        Secretary of Defense on a case-by-case basis.
    ``(f) Regulations.--The Secretary of Defense shall 
prescribe regulations governing the provision of assistance 
under this section. The regulations shall include the 
following:
            ``(1) Rules governing the types of assistance that 
        may be provided.
            ``(2) Procedures governing the delivery of 
        assistance that ensure, to the maximum extent 
        practicable, that such assistance is provided in 
        conjunction with, rather than separate from, civilian 
        efforts.
            ``(3) Procedures for appropriate coordination with 
        civilian officials to ensure that the assistance--
                    ``(A) meets a valid need; and
                    ``(B) does not duplicate other available 
                public services.
            ``(4) Procedures to ensure that Department of 
        Defense resources are not applied exclusively to the 
        program receiving the assistance.
    ``(g) Advisory Councils.--(1) The Secretary of Defense 
shall encourage the establishment of advisory councils at 
regional, State, and local levels, as appropriate, in order to 
obtain recommendations and guidance concerning assistance under 
this section from persons who are knowledgeable about regional, 
State, and local conditions and needs.
    ``(2) The advisory councils should include officials from 
relevant military organizations, representatives of appropriate 
local, State, and Federal agencies, representatives of civic 
and social service organizations, business representatives, and 
labor representatives.
    ``(3) The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to such councils.
    ``(h) Construction of Provision.--Nothing in this section 
shall be construed as authorizing--
            ``(1) the use of the armed forces for civilian law 
        enforcement purposes or for response to natural or 
        manmade disasters; or
            ``(2) the use of Department of Defense personnel or 
        resources for any program, project, or activity that is 
        prohibited by law.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:
``2012. Support and services for eligible organizations and activities 
          outside Department of Defense.''.

SEC. 573. NATIONAL GUARD CIVILIAN YOUTH OPPORTUNITIES PILOT PROGRAM.

    (a) Termination.--The authority under subsection (a) of 
section 1091 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 32 U.S.C. 501 note) to 
carry out a pilot program under that section is hereby 
continued through the end of the 18-month period beginning on 
the date of the enactment of this Act and such authority shall 
terminate as of the end of that period.
    (b) Limitation on Number of Programs.--During the period 
beginning on the date of the enactment of this Act and ending 
on the termination of the pilot program under subsection (a), 
the number of programs carried out under subsection (d) of that 
section as part of the pilot program may not exceed the number 
of such programs as of September 30, 1995.

SEC. 574. TERMINATION OF FUNDING FOR OFFICE OF CIVIL-MILITARY PROGRAMS 
                    IN OFFICE OF THE SECRETARY OF DEFENSE.

    No funds may be obligated or expended after the date of the 
enactment of this Act (1) for the office that as of the date of 
the enactment of this Act is designated, within the Office of 
the Assistant Secretary of Defense for Reserve Affairs, as the 
Office of Civil-Military Programs, or (2) for any other entity 
within the Office of the Secretary of Defense that has an 
exclusive or principal mission of providing centralized 
direction for activities under section 2012 of title 10, United 
States Code, as added by section 572.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1996.

    (a) Rescission of Prior Section 1009 Adjustment.--The 
adjustment made as of January 1, 1996, pursuant to section 4 of 
Executive Order No. 12984 (issued December 28, 1995), in 
elements of compensation of members of the uniformed services 
pursuant to section 1009 of title 37, United States Code, is 
hereby rescinded.
    (b) Increase in Basic Pay and BAS.--The rates of basic pay 
and basic allowance for subsistence of members of the uniformed 
services, as in effect on December 31, 1995, are hereby 
increased by 2.4 percent.
    (c) Increase in BAQ.--The rates of basic allowance for 
quarters of members of the uniformed services, as in effect on 
December 31, 1995, are hereby increased by 5.2 percent.
    (d) Effective Date.--This section shall take effect as of 
January 1, 1996.

SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR SUBSISTENCE FOR MEMBERS 
                    RESIDING WITHOUT DEPENDENTS IN GOVERNMENT QUARTERS.

    (a) Percentage Limitation.--Subsection (b) of section 402 
of title 37, United States Code, is amended by adding after the 
last sentence the following new paragraph:
    ``(4) In the case of enlisted members of the Army, Navy, 
Air Force, or Marine Corps who, when present at their permanent 
duty station, reside without dependents in Government quarters, 
the Secretary concerned may not provide a basic allowance for 
subsistence to more than 12 percent of such members under the 
jurisdiction of the Secretary concerned. The Secretary 
concerned may exceed such percentage if the Secretary 
determines that compliance would increase costs to the 
Government, would impose financial hardships on members 
otherwise entitled to a basic allowance for subsistence, or 
would reduce the quality of life for such members. This 
paragraph shall not apply to members described in the first 
sentence when the members are not residing at their permanent 
duty station. The Secretary concerned shall achieve the 
percentage limitation specified in this paragraph as soon as 
possible after the date of the enactment of this paragraph, but 
in no case later than September 30, 1996.''.
    (b) Stylistic Amendments.--Such subsection is further 
amended--
            (1) by redesignating paragraphs (1), (2), and (3) 
        as subparagraphs (A), (B), and (C);
            (2) by inserting ``(1)'' after ``(b)'';
            (3) by designating the text composed of the second, 
        third, and fourth sentences as paragraph (2); and
            (4) by designating the text composed of the fifth 
        and sixth sentences as paragraph (3).
    (c) Conforming Amendments.--(1) Subsection (e) of such 
section is amended--
            (A) in paragraph (1), by striking out ``the third 
        sentence of subsection (b)'' and inserting in lieu 
        thereof ``subsection (b)(2)''; and
            (B) in paragraph (2), by striking out ``subsection 
        (b)'' and inserting in lieu thereof ``subsection 
        (b)(2)''.
    (2) Section 1012 of title 37, United States Code, is 
amended by striking out ``the last sentence of section 402(b)'' 
and inserting in lieu thereof ``section 402(b)(3)''.
    (d) Report Required.--Not later than March 31, 1996, the 
Secretary of Defense shall submit to Congress a report 
identifying, for the Army, Navy, Air Force, and Marine Corps--
            (1) the number of members who reside without 
        dependents in Government quarters at their permanent 
        duty stations and receive a basic allowance for 
        subsistence under section 402 of title 37, United 
        States Code;
            (2) such number as a percentage of the total number 
        of members who reside without dependents in Government 
        quarters;
            (3) a recommended maximum percentage of the members 
        residing without dependents in Government quarters at 
        their permanent duty station who should receive a basic 
        allowance for subsistence; and
            (4) the reasons such maximum percentage is 
        recommended.

SEC. 603. ELECTION OF BASIC ALLOWANCE FOR QUARTERS INSTEAD OF 
                    ASSIGNMENT TO INADEQUATE QUARTERS.

    (a) Election Authorized.--Section 403(b) of title 37, 
United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by designating the second sentence as paragraph 
        (2) and, as so designated, by striking out ``However, 
        subject'' and inserting in lieu thereof ``Subject''; 
        and
            (3) by adding at the end the following new 
        paragraph:
    ``(3) A member without dependents who is in pay grade E-6 
and who is assigned to quarters of the United States that do 
not meet the minimum adequacy standards established by the 
Department of Defense for members in such pay grade, or to a 
housing facility under the jurisdiction of a uniformed service 
that does not meet such standards, may elect not to occupy such 
quarters or facility and instead to receive the basic allowance 
for quarters prescribed for the member's pay grade by this 
section.''.
    (b) Effective Date.--The amendments made by this section 
shall take effect on July 1, 1996.

SEC. 604. PAYMENT OF BASIC ALLOWANCE FOR QUARTERS TO MEMBERS IN PAY 
                    GRADE E-6 WHO ARE ASSIGNED TO SEA DUTY.

    (a) Payment Authorized.--Section 403(c)(2) of title 37, 
United States Code, is amended--
            (1) in the first sentence, by striking out ``E-7'' 
        and inserting in lieu thereof ``E-6''; and
            (2) in the second sentence, by striking out ``E-6'' 
        and inserting in lieu thereof ``E-5''.
    (b) Effective Date.--The amendments made by this section 
shall take effect on July 1, 1996.

SEC. 605. LIMITATION ON REDUCTION OF VARIABLE HOUSING ALLOWANCE FOR 
                    CERTAIN MEMBERS.

    (a) Limitation on Reduction in VHA.--(1) Subsection (c)(3) 
of section 403a of title 37, United States Code, is amended by 
adding at the end the following new sentence: ``However, so 
long as a member of a uniformed service retains uninterrupted 
eligibility to receive a variable housing allowance within an 
area and the member's certified housing costs are not reduced 
(as indicated by certifications provided by the member under 
subsection (b)(4)), the monthly amount of a variable housing 
allowance under this section for the member within that area 
may not be reduced as a result of systematic adjustments 
required by changes in housing costs within that area.''.
    (2) The amendment made by paragraph (1) shall apply for 
fiscal years after fiscal year 1995.
    (b) Effect on Total Amount Available for VHA.--Subsection 
(d)(3) of such section is amended by inserting after the first 
sentence the following new sentence: ``In addition, the total 
amount determined under paragraph (1) shall be adjusted to 
ensure that sufficient amounts are available to allow payment 
of any additional amounts of variable housing allowance 
necessary as a result of the requirements of the second 
sentence of subsection (c)(3).''.
    (c) Report on Implementation.--Not later than June 1, 1996, 
the Secretary of Defense shall submit to Congress a report 
describing the procedures to be used to implement the 
amendments made by this section and the costs of such 
amendments.
    (d) Resolving VHA Inadequacies in High Housing Cost 
Areas.--If the Secretary of Defense determines that, despite 
the amendments made by this section, inadequacies exist in the 
provision of variable housing allowances under section 403a of 
title 37, United States Code, the Secretary shall submit to 
Congress a report containing a legislative proposal to address 
the inadequacies. The Secretary shall make the determination 
required by this subsection and submit the report, if 
necessary, not later than May 31, 1996.

SEC. 606. CLARIFICATION OF LIMITATION ON ELIGIBILITY FOR FAMILY 
                    SEPARATION ALLOWANCE.

    Section 427(b)(4) of title 37, United States Code, is 
amended in the first sentence by inserting ``paragraph (1)(A) 
of'' after ``not entitled to an allowance under''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(f) 
of title 37, United States Code, is amended by striking out 
``September 30, 1996'' and inserting in lieu thereof 
``September 30, 1997''.
    (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
title 37, United States Code, is amended by striking out 
``September 30, 1996'' and inserting in lieu thereof 
``September 30, 1997''.
    (c) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
title 37, United States Code, is amended by striking out 
``September 30, 1996'' and inserting in lieu thereof 
``September 30, 1997''.
    (d) Ready Reserve Enlistment and Reenlistment Bonus.--
Section 308h(g) of title 37, United States Code, is amended by 
striking out ``September 30, 1996'' and inserting in lieu 
thereof ``September 30, 1997''.
    (e) Prior Service Enlistment Bonus.--Section 308i(i) of 
title 37, United States Code, is amended by striking out 
``September 30, 1996'' and inserting in lieu thereof 
``September 30, 1997''.

SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY FOR NURSE 
                    OFFICER CANDIDATES, REGISTERED NURSES, AND NURSE 
                    ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 
2130a(a)(1) of title 10, United States Code, is amended by 
striking out ``September 30, 1996'' and inserting in lieu 
thereof ``September 30, 1997''.
    (b) Accession Bonus for Registered Nurses.--Section 
302d(a)(1) of title 37, United States Code, is amended by 
striking out ``September 30, 1996'' and inserting in lieu 
thereof ``September 30, 1997''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by 
striking out ``September 30, 1996'' and inserting in lieu 
thereof ``September 30, 1997''.

SEC. 613. EXTENSION OF AUTHORITY RELATING TO PAYMENT OF OTHER BONUSES 
                    AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
title 37, United States Code, is amended by striking out 
``September 30, 1995,'' and inserting in lieu thereof 
``September 30, 1997''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) 
of title 37, United States Code, is amended by striking out 
``September 30, 1996'' and inserting in lieu thereof 
``September 30, 1997''.
    (c) Enlistment Bonuses for Critical Skills.--Sections 
308a(c) and 308f(c) of title 37, United States Code, are each 
amended by striking out ``September 30, 1996'' and inserting in 
lieu thereof ``September 30, 1997''.
    (d) Special Pay for Enlisted Members of the Selected 
Reserve Assigned to Certain High Priority Units.--Section 
308d(c) of title 37, United States Code, is amended by striking 
out ``September 30, 1996'' and inserting in lieu thereof 
``September 30, 1997''.
    (e) Special Pay for Nuclear Qualified Officers Extending 
Period of Active Service.--Section 312(e) of title 37, United 
States Code, is amended by striking out ``September 30, 1996'' 
and inserting in lieu thereof ``September 30, 1997''.
    (f) Nuclear Career Accession Bonus.--Section 312b(c) of 
title 37, United States Code, is amended by striking out 
``September 30, 1996'' and inserting in lieu thereof 
``September 30, 1997''.
    (g) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
of title 37, United States Code, is amended by striking out 
``October 1, 1996'' and inserting in lieu thereof ``October 1, 
1997''.
    (h) Repayment of Education Loans for Certain Health 
Professionals Who Serve in the Selected Reserve.--Section 
16302(d) of title 10, United States Code, is amended by 
striking out ``October 1, 1996'' and inserting in lieu thereof 
``October 1, 1997''.
    (i) Coverage of Period of Lapsed Agreement Authority.--(1) 
In the case of an officer described in section 301b(b) of title 
37, United States Code, who executes an agreement described in 
paragraph (2) during the 90-day period beginning on the date of 
the enactment of this Act, the Secretary concerned may treat 
the agreement for purposes of the retention bonus authorized 
under the agreement as having been executed and accepted on the 
first date on which the officer would have qualified for such 
an agreement had the amendment made by subsection (a) taken 
effect on October 1, 1995.
    (2) An agreement referred to in this subsection is a 
service agreement with the Secretary concerned that is a 
condition for the payment of a retention bonus under section 
301b of title 37, United States Code.
    (3) For purposes of this subsection, the term ``Secretary 
concerned'' has the meaning given that term in section 101(5) 
of title 37, United States Code.

SEC. 614. CODIFICATION AND EXTENSION OF SPECIAL PAY FOR CRITICALLY 
                    SHORT WARTIME HEALTH SPECIALISTS IN THE SELECTED 
                    RESERVES.

    (a) Special Pay Authorized.--(1) Chapter 5 of title 37, 
United States Code, is amended by inserting after section 302f 
the following new section:

``Sec. 302g. Special pay: Selected Reserve health care professionals in 
                    critically short wartime specialties

    ``(a) Special Pay Authorized.--An officer of a reserve 
component of the armed forces described in subsection (b) who 
executes a written agreement under which the officer agrees to 
serve in the Selected Reserve of an armed force for a period of 
not less than one year nor more than three years, beginning on 
the date the officer accepts the award of special pay under 
this section, may be paid special pay at an annual rate not to 
exceed $10,000.
    ``(b) Eligible Officers.--An officer referred to in 
subsection (a) is an officer in a health care profession who is 
qualified in a specialty designated by regulations as a 
critically short wartime specialty.
    ``(c) Time for Payment.--Special pay under this section 
shall be paid annually at the beginning of each twelve-month 
period for which the officer has agreed to serve.
    ``(d) Refund Requirement.--An officer who voluntarily 
terminates service in the Selected Reserve of an armed force 
before the end of the period for which a payment was made to 
such officer under this section shall refund to the United 
States the full amount of the payment made for the period on 
which the payment was based.
    ``(e) Inapplicability of Discharge in Bankruptcy.--A 
discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an agreement under 
this section does not discharge the person receiving special 
pay under the agreement from the debt arising under the 
agreement.
    ``(f) Termination of Agreement Authority.--No agreement 
under this section may be entered into after September 30, 
1997.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 302f 
the following new item:

``302g. Special pay: Selected Reserve health care professionals in 
          critically short wartime specialties.''.

    (b) Conforming Amendment.--Section 303a of title 37, United 
States Code, is amended by striking out ``302, 302a, 302b, 
302c, 302d, 302e,'' each place it appears and inserting in lieu 
thereof ``302 through 302g,''.
    (c) Conforming Repeal.--(1) Section 613 of the National 
Defense Authorization Act, Fiscal Year 1989 (Public Law 100-
456; 37 U.S.C. 302 note) is repealed.
    (2) The provisions of section 613 of the National Defense 
Authorization Act, Fiscal Year 1989, as in effect on the day 
before the date of the enactment of this Act, shall continue to 
apply to agreements entered into under such section before such 
date.

SEC. 615. HAZARDOUS DUTY INCENTIVE PAY FOR WARRANT OFFICERS AND 
                    ENLISTED MEMBERS SERVING AS AIR WEAPONS 
                    CONTROLLERS.

    (a) Inclusion of Additional Members.--Subsection (a)(11) of 
section 301 of title 37, United States Code, is amended by 
striking out ``an officer (other than a warrant officer)'' and 
inserting in lieu thereof ``a member''.
    (b) Calculation of Hazardous Duty Incentive Pay.--The table 
in subparagraph (A) of subsection (c)(2) of such section is 
amended to read as follows:

----------------------------------------------------------------------------------------------------------------
                                                 Years of service as an air weapons controller                  
                              ----------------------------------------------------------------------------------
         ``Pay grade             2 or                                                                           
                                 less     Over 2    Over 3    Over 4    Over 6    Over 8    Over 10             
----------------------------------------------------------------------------------------------------------------
``O-7 and above..............      $200      $200      $200      $200      $200      $200      $200             
``O-6........................       225       250       300       325       350       350       350             
``O-5........................       200       250       300       325       350       350       350             
``O-4........................       175       225       275       300       350       350       350             
``O-3........................       125       156       188       206       350       350       350             
``O-2........................       125       156       188       206       250       300       300             
``O-1........................       125       156       188       206       250       250       250             
``W-4........................       200       225       275       300       325       325       325             
``W-3........................       175       225       275       300       325       325       325             
``W-2........................       150       200       250       275       325       325       325             
``W-1........................       100       125       150       175       325       325       325             
``E-9........................       200       225       250       275       300       300       300             
``E-8........................       200       225       250       275       300       300       300             
``E-7........................       175       200       225       250       275       275       275             
``E-6........................       156       175       200       225       250       250       250             
``E-5........................       125       156       175       188       200       200       200             
``E-4 and below..............       125       156       175       188       200       200       200             
                              ----------------------------------------------------------------------------------
                                Over 12   Over 14   Over 16   Over 18   Over 20   Over 22   Over 24    Over 25  
                              ----------------------------------------------------------------------------------
``O-7 and above..............      $200      $200      $200      $200      $200      $200      $200        $110 
``O-6........................       350       350       350       350       300       250       250         225 
``O-5........................       350       350       350       350       300       250       250         225 
``O-4........................       350       350       350       350       300       250       250         225 
``O-3........................       350       350       350       300       275       250       225         200 
``O-2........................       300       300       300       275       245       210       200         180 
``O-1........................       250       250       250       245       210       200       180         150 
``W-4........................       325       325       325       325       276       250       225         200 
``W-3........................       325       325       325       325       325       250       225         200 
``W-2........................       325       325       325       325       275       250       225         200 
``W-1........................       325       325       325       325       275       250       225         200 
``E-9........................       300       300       300       300       275       230       200         200 
``E-8........................       300       300       300       300       265       230       200         200 
``E-7........................       300       300       300       300       265       230       200         200 
``E-6........................       300       300       300       300       265       230       200         200 
``E-5........................       250       250       250       250       225       200       175         150 
``E-4 and below..............       200       200       200       200       175       150       125      125''. 
----------------------------------------------------------------------------------------------------------------

    (c) Conforming Amendments.--Subsection (c)(2) of such 
section is further amended--
            (1) by striking out ``an officer'' each place it 
        appears and inserting in lieu thereof ``a member''; and
            (2) by striking out ``the officer'' each place it 
        appears and inserting in lieu thereof ``the member''.

SEC. 616. AVIATION CAREER INCENTIVE PAY.

    (a) Years of Operational Flying Duties Required.--Paragraph 
(4) of section 301a(a) of title 37, United States Code, is 
amended in the first sentence by striking out ``9'' and 
inserting in lieu thereof ``8''.
    (b) Exercise of Waiver Authority.--Paragraph (5) of such 
section is amended by inserting after the second sentence the 
following new sentence: ``The Secretary concerned may not 
delegate the authority in the preceding sentence to permit the 
payment of incentive pay under this subsection.''.

SEC. 617. CLARIFICATION OF AUTHORITY TO PROVIDE SPECIAL PAY FOR NURSES.

    Section 302c(d)(1) of title 37, United States Code, is 
amended--
            (1) by striking out ``or'' after ``Air Force,''; 
        and
            (2) by inserting before the semicolon the 
        following: ``, an officer of the Nurse Corps of the 
        Army or Navy, or an officer of the Air Force designated 
        as a nurse''.

SEC. 618. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY FOR CREW MEMBERS OF 
                    SHIPS DESIGNATED AS TENDERS.

    Subparagraph (A) of section 305a(d)(1) of title 37, United 
States Code, is amended to read as follows:
            ``(A) while permanently or temporarily assigned to 
        a ship, ship-based staff, or ship-based aviation unit 
        and--
                    ``(i) while serving on a ship the primary 
                mission of which is accomplished while under 
                way;
                    ``(ii) while serving as a member of the 
                off-crew of a two-crewed submarine; or
                    ``(iii) while serving as a member of a 
                tender-class ship (with the hull classification 
                of submarine or destroyer); or''.

SEC. 619. INCREASE IN MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT PAY FOR 
                    ENLISTED MEMBERS SERVING AS RECRUITERS.

    (a) Special Maximum Rate for Recruiters.--Section 307(a) of 
title 37, United States Code, is amended by adding at the end 
the following new sentence: ``In the case of a member who is 
serving as a military recruiter and is eligible for special 
duty assignment pay under this subsection on account of such 
duty, the Secretary concerned may increase the monthly rate of 
special duty assignment pay for the member to not more than 
$375.''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on January 1, 1996.

            Subtitle C--Travel and Transportation Allowances

SEC. 621. REPEAL OF REQUIREMENT REGARDING CALCULATION OF ALLOWANCES ON 
                    BASIS OF MILEAGE TABLES.

    Section 404(d)(1)(A) of title 37, United States Code, is 
amended by striking out ``, based on distances established over 
the shortest usually traveled route, under mileage tables 
prepared under the direction of the Secretary of Defense''.

SEC. 622. DEPARTURE ALLOWANCES.

    (a) Eligibility When Evacuation Authorized But Not 
Ordered.--Section 405a(a) of title 37, United States Code, is 
amended by striking out ``ordered'' each place it appears and 
inserting in lieu thereof ``authorized or ordered''.
    (b) Application of Amendment.--The amendment made by 
subsection (a) shall apply with respect to persons authorized 
or ordered to depart as described in section 405a(a) of title 
37, United States Code, on or after October 1, 1995.

SEC. 623. TRANSPORTATION OF NONDEPENDENT CHILD FROM MEMBER'S STATION 
                    OVERSEAS AFTER LOSS OF DEPENDENT STATUS WHILE 
                    OVERSEAS.

    Section 406(h)(1) of title 37, United States Code, is 
amended in the last sentence--
            (1) by striking out ``who became 21 years of age'' 
        and inserting in lieu thereof ``who, by reason of age 
        or graduation from (or cessation of enrollment in) an 
        institution of higher education, would otherwise cease 
        to be a dependent of the member''; and
            (2) by inserting ``still'' after ``shall''.

SEC. 624. AUTHORIZATION OF DISLOCATION ALLOWANCE FOR MOVES IN 
                    CONNECTION WITH BASE REALIGNMENTS AND CLOSURES.

    (a) Dislocation Allowance Authorized.--Subsection (a) of 
section 407 of title 37, United States Code, is amended--
            (1) by striking out ``or'' at the end of paragraph 
        (3);
            (2) by striking out the period at the end of 
        paragraph (4)(B) and inserting in lieu thereof ``; 
        or''; and
            (3) by inserting after paragraph (4)(B) the 
        following new paragraph:
            ``(5) the member is ordered to move in connection 
        with the closure or realignment of a military 
        installation and, as a result, the member's dependents 
        actually move or, in the case of a member without 
        dependents, the member actually moves.''.
    (b) Conforming Amendments.--(1) The last sentence of such 
subsection is amended--
            (A) by striking out ``clause (3) or (4)(B)'' and 
        inserting in lieu thereof ``paragraph (3) or (4)(B)''; 
        and
            (B) by striking out ``clause (1)'' and inserting in 
        lieu thereof ``paragraph (1) or (5)''.
    (2) Subsection (b) of such section is amended--
            (A) by striking out ``subsection (a)(3) or 
        (a)(4)(B)'' in the first sentence and inserting in lieu 
        thereof ``paragraph (3) or (4)(B) of subsection (a)''; 
        and
            (B) by striking out ``subsection (a)(1)'' in the 
        second sentence and inserting in lieu thereof 
        ``paragraph (1) or (5) of subsection (a)''.

    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING 
                    ADJUSTMENTS FOR FISCAL YEARS 1996, 1997, AND 1998.

    (a) Adjustment of Effective Dates.--Subparagraph (B) of 
section 1401a(b)(2) of title 10, United States Code, is amended 
to read as follows:
                    ``(B) Special rules for fiscal years 1996 
                and 1998.--
                            ``(i) Fiscal year 1996.--In the 
                        case of the increase in retired pay 
                        that, pursuant to paragraph (1), 
                        becomes effective on December 1, 1995, 
                        the initial month for which such 
                        increase is payable as part of such 
                        retired pay shall (notwithstanding such 
                        December 1 effective date) be March 
                        1996.
                            ``(ii) Fiscal year 1998.--In the 
                        case of the increase in retired pay 
                        that, pursuant to paragraph (1), 
                        becomes effective on December 1, 1997, 
                        the initial month for which such 
                        increase is payable as part of such 
                        retired pay shall (notwithstanding such 
                        December 1 effective date) be September 
                        1998.''.
    (b) Contingent Alternative Date for Fiscal Year 1998.--(1) 
If a civil service retiree cola that becomes effective during 
fiscal year 1998 becomes effective on a date other than the 
date on which a military retiree cola during that fiscal year 
is specified to become effective under subparagraph (B) of 
section 1401a(b)(2) of title 10, United States Code, as amended 
by subsection (a), then the increase in military retired and 
retainer pay shall become payable as part of such retired and 
retainer pay effective on the same date on which such civil 
service retiree cola becomes effective (notwithstanding the 
date otherwise specified in such subparagraph (B)).
    (2) Paragraph (1) does not apply with respect to the 
retired pay of a person retired under chapter 61 of title 10, 
United States Code.
    (3) For purposes of this subsection:
            (A) The term ``civil service retiree cola'' means 
        an increase in annuities under the Civil Service 
        Retirement System either under section 8340(b) of title 
        5, United States Code, or pursuant to a law providing a 
        general increase in such annuities.
            (B) The term ``military retiree cola'' means an 
        adjustment in retired and retainer pay pursuant to 
        section 1401a(b) of title 10, United States Code.
    (c) Repeal of Prior Conditional Enactment.--Section 
8114A(b) of Public Law 103-335 (108 Stat. 2648) is repealed.

SEC. 632. DENIAL OF NON-REGULAR SERVICE RETIRED PAY FOR RESERVES 
                    RECEIVING CERTAIN COURT-MARTIAL SENTENCES.

    (a) In General.--(1) Chapter 1223 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 12740. Eligibility: denial upon certain punitive discharges or 
                    dismissals

    ``A person who--
            ``(1) is convicted of an offense under the Uniform 
        Code of Military Justice (chapter 47 of this title) and 
        whose sentence includes death; or
            ``(2) is separated pursuant to sentence of a court-
        martial with a dishonorable discharge, a bad conduct 
        discharge, or (in the case of an officer) a dismissal,
is not eligible for retired pay under this chapter.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``12740. Eligibility: denial upon certain punitive discharges or 
          dismissals.''.

    (b) Effective Date.--Section 12740 of title 10, United 
States Code, as added by subsection (a), shall apply with 
respect to court-martial sentences adjudged after the date of 
the enactment of this Act.

SEC. 633. REPORT ON PAYMENT OF ANNUITIES FOR CERTAIN MILITARY SURVIVING 
                    SPOUSES.

    (a) Study Required.--(1) The Secretary of Defense shall 
conduct a study to determine the number of potential 
beneficiaries there would be if Congress were to enact 
authority for the Secretary of the military department 
concerned to pay an annuity to the qualified surviving spouse 
of each member of the Armed Forces who--
            (A) died before March 21, 1974, and was entitled to 
        retired or retainer pay on the date of death; or
            (B) was a member of a reserve component who died 
        during the period beginning on September 21, 1972, and 
        ending on October 1, 1978, and at the time of death 
        would have been entitled to retired pay under chapter 
        67 of title 10, United States Code, but for the fact 
        that he was under 60 years of age.
    (2) A qualified surviving spouse for purposes of paragraph 
(1) is a surviving spouse who has not remarried and who is not 
eligible for an annuity under section 4 of Public Law 92-425 
(10 U.S.C. 1448 note).
    (b) Required Determinations.--As part of the study under 
subsection (a), the Secretary shall determine the following:
            (1) The number of unremarried surviving spouses of 
        deceased members and deceased former members of the 
        Armed Forces referred to in subparagraph (A) of 
        subsection (a)(1) who would be eligible for an annuity 
        under authority described in such subsection.
            (2) The number of unremarried surviving spouses of 
        deceased members and deceased former members of reserve 
        components referred to in subparagraph (B) of 
        subsection (a)(1) who would be eligible for an annuity 
        under authority described in such subsection.
            (3) The number of persons in each group of 
        unremarried former spouses described in paragraphs (1) 
        and (2) who are receiving a widow's insurance benefit 
        or a widower's insurance benefit under title II of the 
        Social Security Act on the basis of employment of a 
        deceased member or deceased former member referred to 
        in subsection (a)(1).
    (c) Report.--Not later than March 1, 1996, the Secretary of 
Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on the results of the study under this 
section. The Secretary shall include in the report a 
recommendation on the amount of the annuity that should be 
authorized to be paid under any authority described in 
subsection (a)(1), together with a recommendation on whether 
the annuity should be adjusted annually to offset increases in 
the cost of living.

SEC. 634. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES TO WORLD 
                    WAR II VETERANS WHO SERVED AS GUERRILLA FIGHTERS IN 
                    THE PHILIPPINES.

    (a) In General.--The Secretary of the military department 
concerned shall pay, upon request, to an individual described 
in subsection (b) the amount determined with respect to that 
individual under subsection (c).
    (b) Covered Individuals.--A payment under subsection (a) 
shall be made to any individual who as a member of the Armed 
Forces during World War II--
            (1) was captured on the Island of Bataan in the 
        territory of the Philippines by Japanese forces;
            (2) participated in the Bataan Death March;
            (3) escaped from captivity; and
            (4) served as a guerrilla fighter in the 
        Philippines during the period from January 1942 through 
        February 1945.
    (c) Amount To Be Paid.--The amount of a payment under 
subsection (a) shall be the amount of quarters and subsistence 
allowance which accrued to an individual described in 
subsection (b) during the period specified in paragraph (4) of 
subsection (b) and which was not paid to that individual. The 
Secretary shall apply interest compounded at the three-month 
Treasury bill rate.
    (d) Payment to Survivors.--In the case of any individual 
described in subsection (b) who is deceased, payment under this 
section with respect to that individual shall be made to that 
individual's nearest surviving relative, as determined by the 
Secretary concerned.

SEC. 635. AUTHORITY FOR RELIEF FROM PREVIOUS OVERPAYMENTS UNDER MINIMUM 
                    INCOME WIDOWS PROGRAM.

    (a) Authority.--The Secretary of Defense may waive recovery 
by the United States of any overpayment by the United States 
described in subsection (b). In the case of any such waiver, 
any debt to the United States arising from such overpayment is 
forgiven.
    (b) Covered Overpayments.--Subsection (a) applies in the 
case of an overpayment by the United States that--
            (1) was made before the date of the enactment of 
        this Act under section 4 of Public Law 92-425 (10 
        U.S.C. 1448 note); and
            (2) is attributable to failure by the Department of 
        Defense to apply the eligibility provisions of 
        subsection (a) of such section in the case of the 
        person to whom the overpayment was made.

SEC. 636. TRANSITIONAL COMPENSATION FOR DEPENDENTS OF MEMBERS OF THE 
                    ARMED FORCES SEPARATED FOR DEPENDENT ABUSE.

    (a) Coverage of Program.--Subsection (a) of section 1059 of 
title 10, United States Code, is amended by adding at the end 
the following: ``Upon establishment of such a program, the 
program shall apply in the case of each such member described 
in subsection (b) who is under the jurisdiction of the 
Secretary establishing the program.''.
    (b) Clarification of Payment to Dependents of Members Not 
Discharged.--Subsection (d) of such section is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking out ``any case of a 
                separation from active duty as described in 
                subsection (b)'' and inserting in lieu thereof 
                ``the case of any individual described in 
                subsection (b)''; and
                    (B) by striking ``former member'' and 
                inserting in lieu thereof ``individual'';
            (2) in paragraph (1)--
                    (A) by striking out ``former member'' and 
                inserting in lieu thereof ``individual''; and
                    (B) by striking out ``member'' and 
                inserting in lieu thereof ``individual'';
            (3) in paragraph (2), by striking out ``former 
        member'' both places it appears and inserting in lieu 
        thereof ``individual described in subsection (b)'';
            (4) in paragraph (3), by striking out ``former 
        member'' and inserting in lieu thereof ``individual 
        described in subsection (b)''; and
            (5) in paragraph (4), by striking out ``member'' 
        both places it appears and inserting in lieu thereof 
        ``individual described in subsection (b)''.
    (c) Effective Date.--Section 554(b) of the National Defense 
Authorization Act for Fiscal Year 1994 (10 U.S.C. 1059 note) is 
amended--
            (1) in paragraph (1), by striking out ``on or after 
        the date of the enactment of this Act'' and inserting 
        in lieu thereof ``after November 29, 1993''; and
            (2) by striking out paragraph (2) and inserting in 
        lieu thereof the following:
    ``(2) Payments of transitional compensation under that 
section in the case of any person eligible to receive payments 
under that section shall be made for each month after November 
1993 for which that person may be paid transitional 
compensation in accordance with that section.''.

                       Subtitle E--Other Matters

SEC. 641. PAYMENT TO SURVIVORS OF DECEASED MEMBERS FOR ALL LEAVE 
                    ACCRUED.

    (a) Inapplicability of 60-Day Limitation.--Section 501(d) 
of title 37, United States Code, is amended--
            (1) in paragraph (1), by striking out the third 
        sentence; and
            (2) by striking out paragraph (2) and inserting in 
        lieu thereof the following new paragraph:
    ``(2) The limitations in the second sentence of subsection 
(b)(3), subsection (f), and the second sentence of subsection 
(g) shall not apply with respect to a payment made under this 
subsection.''.
    (b) Conforming Amendment.--Section 501(f) of such title is 
amended by striking out ``, (d),'' in the first sentence.

SEC. 642. REPEAL OF REPORTING REQUIREMENTS REGARDING COMPENSATION 
                    MATTERS.

    (a) Report on Travel and Transportation Allowances for 
Dependents.--(1) Section 406 of title 37, United States Code, 
is amended--
            (A) by striking out subsection (i); and
            (B) by redesignating subsections (j), (k), (l), 
        (m), and (n) as subsections (i), (j), (k), (l), and 
        (m), respectively.
    (2) Section 2634(d) of title 10, United States Code, is 
amended by striking out ``section 406(l) of title 37'' and 
inserting in lieu thereof ``section 406(k) of title 37''.
    (b) Annual Review of Pay and Allowances.--Section 1008(a) 
of title 37, United States Code, is amended by striking out the 
second sentence.
    (c) Report on Quadrennial Review of Adjustments in 
Compensation.--Section 1009(f) of such title is amended by 
striking out ``of this title,'' and all that follows through 
the period at the end and inserting in lieu thereof ``of this 
title.''.

SEC. 643. RECOUPMENT OF ADMINISTRATIVE EXPENSES IN GARNISHMENT ACTIONS.

    (a) In General.--Subsection (j) of section 5520a of title 
5, United States Code, is amended by striking out paragraph (2) 
and inserting in lieu thereof the following new paragraph:
    ``(2) Such regulations shall provide that an agency's 
administrative costs incurred in executing legal process to 
which the agency is subject under this section shall be 
deducted from the amount withheld from the pay of the employee 
concerned pursuant to the legal process.''.
    (b) Involuntary Allotments of Pay of Members of the 
Uniformed Services.--Subsection (k) of such section is 
amended--
            (1) by redesignating paragraph (3) as paragraph 
        (4); and
            (2) by inserting after paragraph (2) the following 
        new paragraph:
    ``(3) Regulations under this subsection may also provide 
that the administrative costs incurred in establishing and 
maintaining an involuntary allotment be deducted from the 
amount withheld from the pay of the member of the uniformed 
services concerned pursuant to such regulations.''.
    (c) Disposition of Amounts Withheld for Administrative 
Expenses.--Such section is further amended by adding at the end 
the following:
    ``(l) The amount of an agency's administrative costs 
deducted under regulations prescribed pursuant to subsection 
(j)(2) or (k)(3) shall be credited to the appropriation, fund, 
or account from which such administrative costs were paid.''.

SEC. 644. REPORT ON EXTENDING TO JUNIOR NONCOMMISSIONED OFFICERS 
                    PRIVILEGES PROVIDED FOR SENIOR NONCOMMISSIONED 
                    OFFICERS.

    (a) Report Required.--Not later than February 1, 1996, the 
Secretary of Defense shall submit to Congress a report 
containing the determinations of the Secretary regarding 
whether, in order to improve the working conditions of 
noncommissioned officers in pay grades E-5 and E-6, any of the 
privileges afforded noncommissioned officers in any of the pay 
grades above E-6 should be extended to noncommissioned officers 
in pay grades E-5 and E-6.
    (b) Specific Recommendation Regarding Election of BAS.--The 
Secretary shall include in the report a determination on 
whether noncommissioned officers in pay grades E-5 and E-6 
should be afforded the same privilege as noncommissioned 
officers in pay grades above E-6 to elect to mess separately 
and receive the basic allowance for subsistence.
    (c) Additional Matters.--The report shall also contain a 
discussion of the following matters:
            (1) The potential costs of extending additional 
        privileges to noncommissioned officers in pay grades E-
        5 and E-6.
            (2) The effects on readiness that would result from 
        extending the additional privileges.
            (3) The options for extending the privileges on an 
        incremental basis over an extended period.
    (d) Recommended Legislation.--The Secretary shall include 
in the report any recommended legislation that the Secretary 
considers necessary in order to authorize extension of a 
privilege as determined appropriate under subsection (a).

SEC. 645. STUDY REGARDING JOINT PROCESS FOR DETERMINING LOCATION OF 
                    RECRUITING STATIONS.

    (a) Study Required.--The Secretary of Defense shall conduct 
a study regarding the feasibility of--
            (1) using a joint process among the Armed Forces 
        for determining the location of recruiting stations and 
        the number of military personnel required to operate 
        such stations; and
            (2) basing such determinations on market research 
        and analysis conducted jointly by the Armed Forces.
    (b) Report.--Not later than March 31, 1996, the Secretary 
of Defense shall submit to Congress a report describing the 
results of the study. The report shall include a recommended 
method for measuring the efficiency of individual recruiting 
stations, such as cost per accession or other efficiency 
standard, as determined by the Secretary.

SEC. 646. AUTOMATIC MAXIMUM COVERAGE UNDER SERVICEMEN'S GROUP LIFE 
                    INSURANCE.

    Effective April 1, 1996, section 1967 of title 38, United 
States Code, is amended--
            (1) in subsections (a) and (c), by striking out 
        ``$100,000'' each place it appears and inserting in 
        lieu thereof in each instance ``$200,000'';
            (2) by striking out subsection (e); and
            (3) by redesignating subsection (f) as subsection 
        (e).

SEC. 647. TERMINATION OF SERVICEMEN'S GROUP LIFE INSURANCE FOR MEMBERS 
                    OF THE READY RESERVE WHO FAIL TO PAY PREMIUMS.

    (a) Authority.--Section 1969(a)(2) of title 38, United 
States Code, is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:
    ``(B) If an individual who is required pursuant to 
subparagraph (A) to make a direct remittance of costs to the 
Secretary concerned fails to make the required remittance 
within 60 days of the date on which such remittance is due, 
such individual's insurance with respect to which such 
remittance is required shall be terminated by the Secretary 
concerned. Such termination shall be made by written notice to 
the individual's official address and shall be effective 60 
days after the date of such notice. Such termination of 
insurance may be vacated if, before the effective date of 
termination, the individual remits all amounts past due for 
such insurance and demonstrates to the satisfaction of the 
Secretary concerned that the failure to make timely remittances 
was justifiable.''.
    (b) Conforming Amendment.--Section 1968(a) is amended by 
inserting ``(or discontinued pursuant to section 1969(a)(2)(B) 
of this title)'' in the matter preceding paragraph (1) after 
``upon the written request of the insured''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on April 1, 1996.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

SEC. 701. MODIFICATION OF REQUIREMENTS REGARDING ROUTINE PHYSICAL 
                    EXAMINATIONS AND IMMUNIZATIONS UNDER CHAMPUS.

    Section 1079(a) of title 10, United States Code, is amended 
by striking out paragraph (2) and inserting in lieu thereof the 
following new paragraph:
            ``(2) consistent with such regulations as the 
        Secretary of Defense may prescribe regarding the 
        content of health promotion and disease prevention 
        visits, the schedule of pap smears and mammograms, and 
        the types and schedule of immunizations--
                    ``(A) for dependents under six years of 
                age, both health promotion and disease 
                prevention visits and immunizations may be 
                provided; and
                    ``(B) for dependents six years of age or 
                older, health promotion and disease prevention 
                visits may be provided in connection with 
                immunizations or with diagnostic or preventive 
                pap smears and mammograms;''.

SEC. 702. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND DEATH 
                    AND DISABILITY BENEFITS FOR CERTAIN RESERVES.

    (a) Medical and Dental Care.--Section 1074a(a) of title 10, 
United States Code, is amended by adding at the end the 
following new paragraph:
            ``(3) Each member of the armed forces who incurs or 
        aggravates an injury, illness, or disease in the line 
        of duty while remaining overnight, between successive 
        periods of inactive-duty training, at or in the 
        vicinity of the site of the inactive-duty training, if 
        the site is outside reasonable commuting distance from 
        the member's residence.''.
    (b) Recovery, Care, and Disposition of Remains.--Section 
1481(a)(2) of title 10, United States Code, is amended--
            (1) in subparagraph (C), by striking out ``or'' at 
        the end of the subparagraph;
            (2) by redesignating subparagraph (D) as 
        subparagraph (E); and
            (3) by inserting after subparagraph (C) the 
        following new subparagraph:
                    ``(D) remaining overnight, between 
                successive periods of inactive-duty training, 
                at or in the vicinity of the site of the 
                inactive-duty training, if the site is outside 
                reasonable commuting distance from the member's 
                residence; or''.
    (c) Entitlement to Basic Pay.--(1) Subsection (g)(1) of 
section 204 of title 37, United States Code, is amended--
            (A) in subparagraph (B), by striking out ``or'' at 
        the end of the subparagraph;
            (B) in subparagraph (C), by striking out the period 
        at the end of the subparagraph and inserting in lieu 
        thereof ``; or''; and
            (C) by inserting after subparagraph (C) the 
        following new subparagraph:
            ``(D) in line of duty while remaining overnight, 
        between successive periods of inactive-duty training, 
        at or in the vicinity of the site of the inactive-duty 
        training, if the site is outside reasonable commuting 
        distance from the member's residence.''.
    (2) Subsection (h)(1) of such section is amended--
            (A) in subparagraph (B), by striking out ``or'' at 
        the end of the subparagraph;
            (B) in subparagraph (C), by striking out the period 
        at the end of the subparagraph and inserting in lieu 
        thereof ``; or''; and
            (C) by inserting after subparagraph (C) the 
        following new subparagraph:
            ``(D) in line of duty while remaining overnight, 
        between successive periods of inactive-duty training, 
        at or in the vicinity of the site of the inactive-duty 
        training, if the site is outside reasonable commuting 
        distance from the member's residence.''.
    (d) Compensation for Inactive-Duty Training.--Section 
206(a)(3) of title 37, United States Code, is amended--
            (1) in subparagraph (A), by striking out ``or'' at 
        the end of clause (ii);
            (2) in subparagraph (B), by striking out the period 
        at the end of the subparagraph and inserting in lieu 
        thereof ``; or''; and
            (3) by inserting after subparagraph (B) the 
        following new subparagraph:
                    ``(C) in line of duty while remaining 
                overnight, between successive periods of 
                inactive-duty training, at or in the vicinity 
                of the site of the inactive-duty training, if 
                the site is outside reasonable commuting 
                distance from the member's residence.''.

SEC. 703. MEDICAL CARE FOR SURVIVING DEPENDENTS OF RETIRED RESERVES WHO 
                    DIE BEFORE AGE 60.

    (a) Change in Eligibility Requirements.--Paragraph (2) of 
section 1076(b) of title 10, United States Code, is amended--
            (1) by striking out ``death (A) would'' and 
        inserting in lieu thereof ``death would''; and
            (2) by striking out ``, and (B) had elected to 
        participate in the Survivor Benefit Plan established 
        under subchapter II of chapter 73 of this title''.
    (b) Conforming Amendments.--Such paragraph is further 
amended--
            (1) in the matter following paragraph (2), by 
        striking out ``clause (2)'' the first place it appears 
        and inserting in lieu thereof ``paragraph (2)''; and
            (2) by striking out the second sentence.

SEC. 704. MEDICAL AND DENTAL CARE FOR MEMBERS OF THE SELECTED RESERVE 
                    ASSIGNED TO EARLY DEPLOYING UNITS OF THE ARMY 
                    SELECTED RESERVE.

    (a) Annual Medical and Dental Screenings and Care.--Section 
1074a of title 10, United States Code, is amended--
            (1) in subsection (c), by striking out ``this 
        section'' and inserting in lieu thereof ``subsection 
        (b)''; and
            (2) by adding at the end the following new 
        subsection:
    ``(d)(1) The Secretary of the Army shall provide to members 
of the Selected Reserve of the Army who are assigned to units 
scheduled for deployment within 75 days after mobilization the 
following medical and dental services:
            ``(A) An annual medical screening.
            ``(B) For members who are over 40 years of age, a 
        full physical examination not less often than once 
        every two years.
            ``(C) An annual dental screening.
            ``(D) The dental care identified in an annual 
        dental screening as required to ensure that a member 
        meets the dental standards required for deployment in 
        the event of mobilization.
    ``(2) The services provided under this subsection shall be 
provided at no cost to the member.''.
    (b) Conforming Repeals.--Sections 1117 and 1118 of the Army 
National Guard Combat Readiness Reform Act of 1992 (title XI of 
Public Law 102-484; 10 U.S.C. 3077 note) are repealed.

SEC. 705. DENTAL INSURANCE FOR MEMBERS OF THE SELECTED RESERVE.

    (a) Program Authorization.--(1) Chapter 55 of title 10, 
United States Code, is amended by inserting after section 1076a 
the following new section:

``Sec. 1076b. Selected Reserve dental insurance

    ``(a) Authority To Establish Plan.--The Secretary of 
Defense shall establish a dental insurance plan for members of 
the Selected Reserve of the Ready Reserve. The plan shall 
provide for voluntary enrollment and for premium sharing 
between the Department of Defense and the members enrolled in 
the plan. The plan shall be administered under regulations 
prescribed by the Secretary of Defense.
    ``(b) Premium Sharing.--(1) A member enrolling in the 
dental insurance plan shall pay a share of the premium charged 
for the insurance coverage. The member's share may not exceed 
$25 per month.
    ``(2) The Secretary of Defense may reduce the monthly 
premium required to be paid by enlisted members under paragraph 
(1) if the Secretary determines that the reduction is 
appropriate in order to assist enlisted members to participate 
in the dental insurance plan.
    ``(3) A member's share of the premium for coverage by the 
dental insurance plan shall be deducted and withheld from the 
basic pay payable to the member for inactive duty training and 
from the basic pay payable to the member for active duty.
    ``(4) The Secretary of Defense shall pay the portion of the 
premium charged for coverage of a member under the dental 
insurance plan that exceeds the amount paid by the member.
    ``(c) Benefits Available Under the Plan.--The dental 
insurance plan shall provide benefits for basic dental care and 
treatment, including diagnostic services, preventative 
services, basic restorative services, and emergency oral 
examinations.
    ``(d) Termination of Coverage.--The coverage of a member by 
the dental insurance plan shall terminate on the last day of 
the month in which the member is discharged, transfers to the 
Individual Ready Reserve, Standby Reserve, or Retired Reserve, 
or is ordered to active duty for a period of more than 30 
days.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
1076a the following:

``1076b. Selected Reserve dental insurance.''.

    (b) Implementation.--Beginning not later than October 1, 
1996, the Secretary of Defense shall offer members of the 
Selected Reserve the opportunity to enroll in the dental 
insurance plan required under section 1076b of title 10, United 
States Code (as added by subsection (a)). During fiscal year 
1996, the Secretary shall collect such information and complete 
such planning and other preparations as are necessary to offer 
and administer the dental insurance plan by that date. The 
activities undertaken by the Secretary under this subsection 
during fiscal year 1996 may include--
            (1) surveys; and
            (2) tests, in not more than three States, of a 
        dental insurance plan or alternative dental insurance 
        plans meeting the requirements of section 1076b of 
        title 10, United States Code.

SEC. 706. PERMANENT AUTHORITY TO CARRY OUT SPECIALIZED TREATMENT 
                    FACILITY PROGRAM.

    Section 1105 of title 10, United States Code, is amended by 
striking out subsection (h).

                      Subtitle B--TRICARE Program

SEC. 711. DEFINITION OF TRICARE PROGRAM.

    For purposes of this subtitle, the term ``TRICARE program'' 
means the managed health care program that is established by 
the Secretary of Defense under the authority of chapter 55 of 
title 10, United States Code, principally section 1097 of such 
title, and includes the competitive selection of contractors to 
financially underwrite the delivery of health care services 
under the Civilian Health and Medical Program of the Uniformed 
Services.

SEC. 712. PRIORITY USE OF MILITARY TREATMENT FACILITIES FOR PERSONS 
                    ENROLLED IN MANAGED CARE INITIATIVES.

    Section 1097(c) of title 10, United States Code, is amended 
in the third sentence by striking out ``However, the Secretary 
may'' and inserting in lieu thereof ``Notwithstanding the 
preferences established by sections 1074(b) and 1076 of this 
title, the Secretary shall''.

SEC. 713. STAGGERED PAYMENT OF ENROLLMENT FEES FOR TRICARE PROGRAM.

    Section 1097(e) of title 10, United States Code, is amended 
by adding at the end the following new sentence: ``Without 
imposing additional costs on covered beneficiaries who 
participate in contracts for health care services under this 
section or health care plans offered under section 1099 of this 
title, the Secretary shall permit such covered beneficiaries to 
pay, on a quarterly basis, any enrollment fee required for such 
participation.''.

SEC. 714. REQUIREMENT OF BUDGET NEUTRALITY FOR TRICARE PROGRAM TO BE 
                    BASED ON ENTIRE PROGRAM.

    (a) Change in Budget Neutrality Requirements.--Subsection 
(c) of section 731 of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 1073 note) 
is amended--
            (1) by striking out ``each managed health care 
        initiative that includes the option'' and inserting in 
        lieu thereof ``the TRICARE program''; and
            (2) by striking out ``covered beneficiaries who 
        enroll in the option'' and inserting in lieu thereof 
        ``members of the uniformed services and covered 
        beneficiaries who participate in the TRICARE program''.
    (b) Addition of Definition of TRICARE Program.--Subsection 
(d) of such section is amended to read as follows:
    ``(d) Definitions.--For purposes of this section:
            ``(1) The term `covered beneficiary' means a 
        beneficiary under chapter 55 of title 10, United States 
        Code, other than a beneficiary under section 1074(a) of 
        such title.
            ``(2) The term `TRICARE program' means the managed 
        health care program that is established by the 
        Secretary of Defense under the authority of chapter 55 
        of title 10, United States Code, principally section 
        1097 of such title, and includes the competitive 
        selection of contractors to financially underwrite the 
        delivery of health care services under the Civilian 
        Health and Medical Program of the Uniformed 
        Services.''.

SEC. 715. TRAINING IN HEALTH CARE MANAGEMENT AND ADMINISTRATION FOR 
                    TRICARE LEAD AGENTS.

    (a) Provision of Training.--Not later than six months after 
the date of the enactment of this Act, the Secretary of Defense 
shall implement a professional educational program to provide 
appropriate training in health care management and 
administration--
            (1) to each commander of a military medical 
        treatment facility of the Department of Defense who is 
        selected to serve as a lead agent to coordinate the 
        delivery of health care by military and civilian 
        providers under the TRICARE program; and
            (2) to appropriate members of the support staff of 
        the treatment facility who will be responsible for 
        daily operation of the TRICARE program.
    (b) Report on Implementation.--Not later than six months 
after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress a report describing the 
professional educational program implemented pursuant to this 
section.

SEC. 716. PILOT PROGRAM OF INDIVIDUALIZED RESIDENTIAL MENTAL HEALTH 
                    SERVICES.

    (a) Program Required.--(1) During fiscal year 1996, the 
Secretary of Defense, in consultation with the other 
administering Secretaries under chapter 55 of title 10, United 
States Code, shall implement a pilot program to provide 
residential and wraparound services to children described in 
paragraph (2) who are in need of mental health services. The 
Secretary shall implement the pilot program for an initial 
period of at least two years in a military health care region 
in which the TRICARE program has been implemented.
    (2) A child shall be eligible for selection to participate 
in the pilot program if the child is a dependent (as described 
in subparagraph (D) or (I) of section 1072(2) of title 10, 
United States Code) who--
            (A) is eligible for health care under section 1079 
        or 1086 of such title; and
            (B) has a serious emotional disturbance that is 
        generally regarded as amenable to treatment.
    (b) Wraparound Services Defined.--For purposes of this 
section, the term ``wraparound services'' means individualized 
mental health services that are provided principally to allow a 
child to remain in the family home or other least-restrictive 
and least-costly setting, but also are provided as an aftercare 
planning service for children who have received acute or 
residential care. Such term includes nontraditional mental 
health services that will assist the child to be maintained in 
the least-restrictive and least-costly setting.
    (c) Pilot Program Agreement.--Under the pilot program the 
Secretary of Defense shall enter into one or more agreements 
that require a mental health services provider under the 
agreement--
            (1) to provide wraparound services to a child 
        described in subsection (a)(2);
            (2) to continue to provide such services as needed 
        during the period of the agreement even if the child 
        moves to another location within the same TRICARE 
        program region during that period; and
            (3) to share financial risk by accepting as a 
        maximum annual payment for such services a case-rate 
        reimbursement not in excess of the amount of the annual 
        standard CHAMPUS residential treatment benefit payable 
        (as determined in accordance with section 8.1 of 
        chapter 3 of volume II of the CHAMPUS policy manual).
    (d) Report.--Not later than March 1, 1998, the Secretary of 
Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on the program carried out under this 
section. The report shall contain--
            (1) an assessment of the effectiveness of the 
        program; and
            (2) the Secretary's views regarding whether the 
        program should be implemented throughout the military 
        health care system.

SEC. 717. EVALUATION AND REPORT ON TRICARE PROGRAM EFFECTIVENESS.

    (a) Evaluation Required.--The Secretary of Defense shall 
arrange for an on-going evaluation of the effectiveness of the 
TRICARE program in meeting the goals of increasing the access 
of covered beneficiaries under chapter 55 of title 10, United 
States Code, to health care and improving the quality of health 
care provided to covered beneficiaries, without increasing the 
costs incurred by the Government or covered beneficiaries. The 
evaluation shall specifically address--
            (1) the impact of the TRICARE program on military 
        retirees with regard to access, costs, and quality of 
        health care services; and
            (2) identify noncatchment areas in which the health 
        maintenance organization option of the TRICARE program 
        is available or is proposed to become available.
    (b) Entity To Conduct Evaluation.--The Secretary may use a 
federally funded research and development center to conduct the 
evaluation required by subsection (a).
    (c) Annual Report.--Not later than March 1, 1997, and each 
March 1 thereafter, the Secretary shall submit to Congress a 
report describing the results of the evaluation under 
subsection (a) during the preceding year.

SEC. 718. SENSE OF CONGRESS REGARDING ACCESS TO HEALTH CARE UNDER 
                    TRICARE PROGRAM FOR COVERED BENEFICIARIES WHO ARE 
                    MEDICARE ELIGIBLE.

    (a) Findings.--Congress finds the following:
            (1) Medical care provided in facilities of the 
        uniformed services is generally less expensive to the 
        Federal Government than the same care provided at 
        Government expense in the private sector.
            (2) Covered beneficiaries under the military health 
        care provisions of chapter 55, United States Code, who 
        are eligible for medicare under title XVIII of the 
        Social Security Act (42 U.S.C. 1395 et seq.) deserve 
        health care options that empower them to choose the 
        health plan that best fits their needs.
    (b) Sense of Congress.--In light of the findings specified 
in subsection (a), it is the sense of Congress that--
            (1) the Secretary of Defense should develop a 
        program to ensure that such covered beneficiaries who 
        reside in a region in which the TRICARE program has 
        been implemented continue to have adequate access to 
        health care services after the implementation of the 
        TRICARE program; and
            (2) as a means of ensuring such access, the budget 
        for fiscal year 1997 submitted by the President under 
        section 1105 of title 31, United States Code, should 
        provide for reimbursement by the Health Care Financing 
        Administration to the Department of Defense for health 
        care services provided to such covered beneficiaries in 
        medical treatment facilities of the Department of 
        Defense.

          Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. DELAY OF TERMINATION OF STATUS OF CERTAIN FACILITIES AS 
                    UNIFORMED SERVICES TREATMENT FACILITIES.

    Section 1252(e) of the Department of Defense Authorization 
Act, 1984 (42 U.S.C. 248d(e)) is amended by striking out 
``December 31, 1996'' in the first sentence and inserting in 
lieu thereof ``September 30, 1997''.

SEC. 722. LIMITATION ON EXPENDITURES TO SUPPORT UNIFORMED SERVICES 
                    TREATMENT FACILITIES.

    Subsection (f) of section 1252 of the Department of Defense 
Authorization Act, 1984 (42 U.S.C. 248d), is amended to read as 
follows:
    ``(f) Limitation on Expenditures.--The total amount of 
expenditures by the Secretary of Defense to carry out this 
section and section 911 of the Military Construction 
Authorization Act, 1982 (42 U.S.C. 248c), for fiscal year 1996 
may not exceed $300,000,000, adjusted by the Secretary to 
reflect the inflation factor used by the Department of Defense 
for such fiscal year.''.

SEC. 723. APPLICATION OF CHAMPUS PAYMENT RULES IN CERTAIN CASES.

    Section 1074 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(d)(1) The Secretary of Defense may require, by 
regulation, a private CHAMPUS provider to apply the CHAMPUS 
payment rules (subject to any modifications considered 
appropriate by the Secretary) in imposing charges for health 
care that the private CHAMPUS provider provides to a member of 
the uniformed services who is enrolled in a health care plan of 
a facility deemed to be a facility of the uniformed services 
under section 911(a) of the Military Construction Authorization 
Act, 1982 (42 U.S.C. 248c(a)) when the health care is provided 
outside the catchment area of the facility.
    ``(2) In this subsection:
            ``(A) The term `private CHAMPUS provider' means a 
        private facility or health care provider that is a 
        health care provider under the Civilian Health and 
        Medical Program of the Uniformed Services.
            ``(B) The term `CHAMPUS payment rules' means the 
        payment rules referred to in subsection (c).
    ``(3) The Secretary of Defense shall prescribe regulations 
under this subsection after consultation with the other 
administering Secretaries.''.

SEC. 724. APPLICATION OF FEDERAL ACQUISITION REGULATION TO 
                    PARTICIPATION AGREEMENTS WITH UNIFORMED SERVICES 
                    TREATMENT FACILITIES.

    (a) Section 718(c) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) 
is amended--
            (1) in the second sentence of paragraph (1), by 
        striking out ``A participation agreement'' and 
        inserting in lieu thereof ``Except as provided in 
        paragraph (4), a participation agreement'';
            (2) by redesignating paragraph (4) as paragraph 
        (6); and
            (3) by inserting after paragraph (3) the following 
        new paragraph:
            ``(4) Application of federal acquisition 
        regulation.--On and after the date of the enactment of 
        this paragraph, Uniformed Services Treatment Facilities 
        and any participation agreement between Uniformed 
        Services Treatment Facilities and the Secretary of 
        Defense shall be subject to the Federal Acquisition 
        Regulation issued pursuant to section 25(c) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 
        421(c)) notwithstanding any provision to the contrary 
        in such a participation agreement. The requirements 
        regarding competition in the Federal Acquisition 
        Regulation shall apply with regard to the negotiation 
        of any new participation agreement between the 
        Uniformed Services Treatment Facilities and the 
        Secretary of Defense under this subsection or any other 
        provision of law.''.
    (b) Sense of Congress.--(1) Congress finds that the 
Uniformed Services Treatment Facilities provide quality health 
care to the 120,000 Department of Defense beneficiaries 
enrolled in the Uniformed Services Family Health Plan provided 
by these facilities.
    (2) In light of such finding, it is the sense of Congress 
that the Uniformed Services Family Health Plan provided by the 
Uniformed Services Treatment Facilities should not be 
terminated for convenience under provisions of the Federal 
Acquisition Regulation by the Secretary of Defense before the 
expiration of the current participation agreements.
    (3) For purposes of this subsection, the term ``Uniformed 
Services Treatment Facility'' means a facility deemed to be a 
facility of the uniformed services by virtue of section 911(a) 
of the Military Construction Authorization Act, 1982 (42 U.S.C. 
248c(a)).

SEC. 725. DEVELOPMENT OF PLAN FOR INTEGRATING UNIFORMED SERVICES 
                    TREATMENT FACILITIES IN MANAGED CARE PROGRAMS OF 
                    DEPARTMENT OF DEFENSE.

    Section 718(c) of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) is 
amended by inserting after paragraph (4), as added by section 
722, the following new paragraph:
            ``(5) Plan for integrating facilities.--(A) The 
        Secretary of Defense shall develop a plan under which 
        Uniformed Services Treatment Facilities could be 
        included, before the expiration date of the 
        participation agreements entered into under this 
        section, in the exclusive health care provider networks 
        established by the Secretary for the geographic regions 
        in which the facilities are located. The Secretary 
        shall address in the plan the feasibility of 
        implementing the managed care plan of the Uniformed 
        Services Treatment Facilities, known as Option II, on a 
        mandatory basis for all USTF Medicare-eligible 
        beneficiaries and the potential cost savings to the 
        Military Health Care Program that could be achieved 
        under such option.
            ``(B) The Secretary shall submit the plan developed 
        under this paragraph to Congress not later than March 
        1, 1996.
            ``(C) The plan developed under this paragraph shall 
        be consistent with the requirements specified in 
        paragraph (4). If the plan is not submitted to Congress 
        by the expiration date of the participation agreements 
        entered into under this section, the participation 
        agreements shall remain in effect, at the option of the 
        Uniformed Services Treatment Facilities, until the end 
        of the 180-day period beginning on the date the plan is 
        finally submitted.
            ``(D) For purposes of this paragraph, the term 
        `USTF Medicare-eligible beneficiaries' means covered 
        beneficiaries under chapter 55 of title 10, United 
        States Code, who are enrolled in a managed health plan 
        offered by the Uniformed Services Treatment Facilities 
        and entitled to hospital insurance benefits under part 
        A of title XVIII of the Social Security Act (42 U.S.C. 
        1395c et seq.).''.

SEC. 726. EQUITABLE IMPLEMENTATION OF UNIFORM COST SHARING REQUIREMENTS 
                    FOR UNIFORMED SERVICES TREATMENT FACILITIES.

    (a) Time for Fee Implementation.--The uniform managed care 
benefit fee and copayment schedule developed by the Secretary 
of Defense for use in all managed care initiatives of the 
military health service system, including the managed care 
program of the Uniformed Services Treatment Facilities, shall 
be extended to the managed care program of a Uniformed Services 
Treatment Facility only after the later of--
            (1) the implementation of the TRICARE regional 
        program covering the service area of the Uniformed 
        Services Treatment Facility; or
            (2) October 1, 1996.
    (b) Submission of Actuarial Estimates.--Paragraph (2) of 
subsection (a) shall operate as a condition on the extension of 
the uniform managed care benefit fee and copayment schedule to 
the Uniformed Services Treatment Facilities only if the 
Uniformed Services Treatment Facilities submit to the 
Comptroller General of the United States, within 30 days after 
the date of the enactment of this Act, actuarial estimates in 
support of their contention that the extension of such fees and 
copayments will have an adverse effect on the operation of the 
Uniformed Services Treatment Facilities and the enrollment of 
participants.
    (c) Evaluation.--(1) Except as provided in paragraph (2), 
not later than 90 days after the date of the enactment of this 
Act, the Comptroller General shall submit to Congress the 
results of an evaluation of the effect on the Uniformed 
Services Treatment Facilities of the extension of the uniform 
benefit fee and copayment schedule to the Uniformed Services 
Treatment Facilities. The evaluation shall include an 
examination of whether the benefit fee and copayment schedule 
may--
            (A) cause adverse selection of enrollees;
            (B) be inappropriate for a fully at-risk program 
        similar to civilian health maintenance organizations; 
        or
            (C) result in an enrolled population dissimilar to 
        the general beneficiary population.
    (2) The Comptroller General shall not be required to 
prepare or submit the evaluation under paragraph (1) if the 
Uniformed Services Treatment Facilities fail to satisfactorily 
comply with subsection (b), as determined by the Comptroller 
General.

SEC. 727. ELIMINATION OF UNNECESSARY ANNUAL REPORTING REQUIREMENT 
                    REGARDING UNIFORMED SERVICES TREATMENT FACILITIES.

    Section 1252 of the Department of Defense Authorization 
Act, 1984 (42 U.S.C. 248d), is amended by striking out 
subsection (d).

   Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

SEC. 731. MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL HEALTH-CARE 
                    PROVIDERS UNDER CHAMPUS.

    (a) Maximum Payment.--Subsection (h) of section 1079 of 
title 10, United States Code, is amended by striking out 
paragraph (1) and inserting in lieu thereof the following new 
paragraph:
    ``(1) Payment for a charge for services by an individual 
health care professional (or other noninstitutional health care 
provider) for which a claim is submitted under a plan 
contracted for under subsection (a) may not exceed the lesser 
of--
            ``(A) the amount equivalent to the 80th percentile 
        of billed charges made for similar services in the same 
        locality during the base period; or
            ``(B) an amount determined to be appropriate, to 
        the extent practicable, in accordance with the same 
        reimbursement rules as apply to payments for similar 
        services under title XVIII of the Social Security Act 
        (42 U.S.C. 1395 et seq.).''.
    (b) Comparison to Medicare Payments.--Such subsection is 
further amended by adding at the end the following new 
paragraph:
    ``(3) For the purposes of paragraph (1)(B), the appropriate 
payment amount shall be determined by the Secretary of Defense, 
in consultation with the other administering Secretaries.''.
    (c) Exceptions and Limitations.--Such subsection is further 
amended by inserting after paragraph (3), as added by 
subsection (b), the following new paragraphs:
    ``(4) The Secretary of Defense, in consultation with the 
other administering Secretaries, shall prescribe regulations to 
provide for such exceptions to the payment limitations under 
paragraph (1) as the Secretary determines to be necessary to 
assure that covered beneficiaries retain adequate access to 
health care services. Such exceptions may include the payment 
of amounts higher than the amount allowed under paragraph (1) 
when enrollees in managed care programs obtain covered 
emergency services from nonparticipating providers. To provide 
a suitable transition from the payment methodologies in effect 
before the date of the enactment of this paragraph to the 
methodology required by paragraph (1), the amount allowable for 
any service may not be reduced by more than 15 percent below 
the amount allowed for the same service during the immediately 
preceding 12-month period (or other period as established by 
the Secretary of Defense).
    ``(5) The Secretary of Defense, in consultation with the 
other administering Secretaries, shall prescribe regulations to 
establish limitations (similar to the limitations established 
under title XVIII of the Social Security Act (42 U.S.C. 1395 et 
seq.)) on beneficiary liability for charges of an individual 
health care professional (or other noninstitutional health care 
provider).''.
    (d) Conforming Amendment.--Paragraph (2) of such subsection 
is amended by striking out ``paragraph (1)'' and inserting in 
lieu thereof ``paragraph (1)(A)''.
    (e) Report on Effect of Amendments.--Not later than March 
1, 1996, the Secretary of Defense shall submit to Congress a 
report analyzing the effect of the amendments made by this 
section on the ability or willingness of individual health care 
professionals and other noninstitutional health care providers 
to participate in the Civilian Health and Medical Program of 
the Uniformed Services.

SEC. 732. NOTIFICATION OF CERTAIN CHAMPUS COVERED BENEFICIARIES OF LOSS 
                    OF CHAMPUS ELIGIBILITY.

    Section 1086(d) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(4) The administering Secretaries shall develop a 
mechanism by which persons described in paragraph (1) who 
satisfy only the criteria specified in subparagraphs (A) and 
(B) of paragraph (2), but not subparagraph (C) of such 
paragraph, are promptly notified of their ineligibility for 
health benefits under this section. In developing the 
notification mechanism, the administering Secretaries shall 
consult with the administrator of the Health Care Financing 
Administration.''.

SEC. 733. PERSONAL SERVICES CONTRACTS FOR MEDICAL TREATMENT FACILITIES 
                    OF THE COAST GUARD.

    (a) Contracting Authority.--Section 1091(a) of title 10, 
United States Code, is amended--
            (1) by inserting after ``Secretary of Defense'' the 
        following: ``, with respect to medical treatment 
        facilities of the Department of Defense, and the 
        Secretary of Transportation, with respect to medical 
        treatment facilities of the Coast Guard when the Coast 
        Guard is not operating as a service in the Navy,''; and
            (2) by striking out ``medical treatment facilities 
        of the Department of Defense'' and inserting in lieu 
        thereof ``such facilities''.
    (b) Ratification of Existing Contracts.--Any exercise of 
authority under section 1091 of title 10, United States Code, 
to enter into a personal services contract on behalf of the 
Coast Guard before the effective date of the amendments made by 
subsection (a) is hereby ratified.
    (c) Effective Date.--The amendments made by subsection (a) 
shall take effect as of October 1, 1995.

SEC. 734. IDENTIFICATION OF THIRD-PARTY PAYER SITUATIONS.

    Section 1095 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(k)(1) To improve the administration of this section and 
sections 1079(j)(1) and 1086(d) of this title, the Secretary of 
Defense, in consultation with the other administering 
Secretaries, may prescribe regulations providing for the 
collection of information regarding insurance, medical service, 
or health plans of third-party payers held by covered 
beneficiaries.
    ``(2) The collection of information under regulations 
prescribed under paragraph (1) shall be conducted in the same 
manner as is provided in section 1862(b)(5) of the Social 
Security Act (42 U.S.C. 1395y(b)(5)). The Secretary may provide 
for obtaining from the Commissioner of Social Security 
employment information comparable to the information provided 
to the Administrator of the Health Care Financing 
Administration pursuant to such section. Such regulations may 
require the mandatory disclosure of Social Security account 
numbers for all covered beneficiaries.
    ``(3) The Secretary may disclose relevant employment 
information collected under this subsection to fiscal 
intermediaries or other designated contractors.
    ``(4) The Secretary may provide for contacting employers of 
covered beneficiaries to obtain group health plan information 
comparable to the information authorized to be obtained under 
section 1862(b)(5)(C) of the Social Security Act (42 U.S.C. 
1395y(b)(5)(C)). Notwithstanding clause (iii) of such section, 
clause (ii) of such section regarding the imposition of civil 
money penalties shall apply to the collection of information 
under this paragraph.
    ``(5) Information obtained under this subsection may not be 
disclosed for any purpose other than to carry out the purpose 
of this section and sections 1079(j)(1) and 1086(d) of this 
title.''.

SEC. 735. REDESIGNATION OF MILITARY HEALTH CARE ACCOUNT AS DEFENSE 
                    HEALTH PROGRAM ACCOUNT AND TWO-YEAR AVAILABILITY OF 
                    CERTAIN ACCOUNT FUNDS.

    (a) Redesignation.--Section 1100 of title 10, United States 
Code, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking out ``Military Health Care 
                Account'' and inserting in lieu thereof 
                ``Defense Health Program Account''; and
                    (B) by striking out ``the Civilian Health 
                and Medical Program of the Uniformed Services'' 
                and inserting in lieu thereof ``medical and 
                health care programs of the Department of 
                Defense''; and
            (2) in subsection (b)--
                    (A) by striking out ``entering into a 
                contract'' and inserting in lieu thereof 
                ``conducting programs and activities under this 
                chapter, including contracts entered into''; 
                and
                    (B) by inserting a comma after ``title''.
    (b) Two Year Availability of Certain Appropriations.--
Subsection (a)(2) of such section is amended to read as 
follows:
    ``(2) Of the total amount appropriated for a fiscal year 
for programs and activities carried out under this chapter, the 
amount equal to three percent of such total amount shall remain 
available for obligation until the end of the following fiscal 
year.''.
    (c) Conforming Amendments.--Such section is further 
amended--
            (1) by striking out subsections (c), (d), and (f); 
        and
            (2) by redesignating subsection (e) as subsection 
        (c).
    (d) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 1100. Defense Health Program Account''.

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 55 of such title is 
amended to read as follows:

``1100. Defense Health Program Account.''.

SEC. 736. EXPANSION OF FINANCIAL ASSISTANCE PROGRAM FOR HEALTH-CARE 
                    PROFESSIONALS IN RESERVE COMPONENTS TO INCLUDE 
                    DENTAL SPECIALTIES.

    Section 16201(b) of title 10, United States Code, is 
amended--
            (1) in the subsection heading, by inserting ``and 
        Dentists'' after ``Physicians'';
            (2) in paragraph (1)(A), by inserting ``or dental 
        school'' after ``medical school'';
            (3) in paragraphs (1)(B) and (2)(B), by inserting 
        ``or dental officer'' after ``medical officer''; and
            (4) in paragraph (1)(C), by striking out 
        ``physicians in a medical specialty'' and inserting in 
        lieu thereof ``physicians or dentists in a medical or 
        dental specialty''.

SEC. 737. APPLICABILITY OF LIMITATION ON PRICES OF PHARMACEUTICALS 
                    PROCURED FOR COAST GUARD.

    (a) Inclusion of Coast Guard.--Section 8126(b) of title 38, 
United States Code, is amended by adding at the end the 
following new paragraph:
            ``(4) The Coast Guard.''.
    (b) Effective Date; Application of Amendment.--The 
amendment made by subsection (a) shall take effect as if 
included in the enactment of section 603 of the Veterans Health 
Care Act of 1992 (Public Law 102-585; 106 Stat. 4971).

SEC. 738. RESTRICTION ON USE OF DEPARTMENT OF DEFENSE FACILITIES FOR 
                    ABORTIONS.

    (a) In General.--Section 1093 of title 10, United States 
Code, is amended--
            (1) by inserting ``(a) Restriction on Use of 
        Funds.--'' before ``Funds available''; and
            (2) by adding at the end the following:
    ``(b) Restriction on Use of Facilities.--No medical 
treatment facility or other facility of the Department of 
Defense may be used to perform an abortion except where the 
life of the mother would be endangered if the fetus were 
carried to term or in a case in which the pregnancy is the 
result of an act of rape or incest.''.
    (b) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 1093. Performance of abortions: restrictions''.

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 55 of such title is 
amended to read as follows:

``1093. Performance of abortions: restrictions.''.

                       Subtitle E--Other Matters

SEC. 741. TRISERVICE NURSING RESEARCH.

    (a) Program Authorized.--Chapter 104 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 2116. Military nursing research

    ``(a) Definitions.--In this section:
            ``(1) The term `military nursing research' means 
        research on the furnishing of care and services by 
        nurses in the armed forces.
            ``(2) The term `TriService Nursing Research 
        Program' means the program of military nursing research 
        authorized under this section.
    ``(b) Program Authorized.--The Secretary of Defense may 
establish at the University a program of military nursing 
research.
    ``(c) TriService Research Group.--The TriService Nursing 
Research Program shall be administered by a TriService Nursing 
Research Group composed of Army, Navy, and Air Force nurses who 
are involved in military nursing research and are designated by 
the Secretary concerned to serve as members of the group.
    ``(d) Duties of Group.--The TriService Nursing Research 
Group shall--
            ``(1) develop for the Department of Defense 
        recommended guidelines for requesting, reviewing, and 
        funding proposed military nursing research projects; 
        and
            ``(2) make available to Army, Navy, and Air Force 
        nurses and Department of Defense officials concerned 
        with military nursing research--
                    ``(A) information about nursing research 
                projects that are being developed or carried 
                out in the Army, Navy, and Air Force; and
                    ``(B) expertise and information beneficial 
                to the encouragement of meaningful nursing 
                research.
    ``(e) Research Topics.--For purposes of this section, 
military nursing research includes research on the following 
issues:
            ``(1) Issues regarding how to improve the results 
        of nursing care and services provided in the armed 
        forces in time of peace.
            ``(2) Issues regarding how to improve the results 
        of nursing care and services provided in the armed 
        forces in time of war.
            ``(3) Issues regarding how to prevent complications 
        associated with battle injuries.
            ``(4) Issues regarding how to prevent complications 
        associated with the transporting of patients in the 
        military medical evacuation system.
            ``(5) Issues regarding how to improve methods of 
        training nursing personnel.
            ``(6) Clinical nursing issues, including such 
        issues as prevention and treatment of child abuse and 
        spouse abuse.
            ``(7) Women's health issues.
            ``(8) Wellness issues.
            ``(9) Preventive medicine issues.
            ``(10) Home care management issues.
            ``(11) Case management issues.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 104 of such title is amended by adding at 
the end the following:

``2116. Military nursing research.''.

SEC. 742. TERMINATION OF PROGRAM TO TRAIN MILITARY PSYCHOLOGISTS TO 
                    PRESCRIBE PSYCHOTROPIC MEDICATIONS.

    (a) Termination.--Not later than June 30, 1997, the 
Secretary of Defense shall terminate the demonstration pilot 
program for training military psychologists in the prescription 
of psychotropic medications, which is referred to in section 
8097 of the Department of Defense Appropriations Act, 1991 
(Public Law 101-511; 104 Stat. 1897).
    (b) Prohibition on Additional Enrollees Pending 
Termination.--After the date of the enactment of this Act, the 
Secretary of Defense may not enroll any new participants for 
the demonstration pilot program described in subsection (a).
    (c) Effect on Current Participants.--The requirement to 
terminate the demonstration pilot program described in 
subsection (a) shall not be construed to affect the training or 
utilization of military psychologists in the prescription of 
psychotropic medications who are participating in the 
demonstration pilot program on the date of the enactment of 
this Act or who have completed such training before that date.
    (d) Evaluation.--As soon as possible after the date of the 
enactment of this Act, but not later than April 1, 1997, the 
Comptroller General of the United States shall submit to 
Congress a report evaluating the success of the demonstration 
pilot program described in subsection (a). The report shall 
include--
            (1) a cost-benefit analysis of the program;
            (2) a discussion of the utilization requirements 
        under the program; and
            (3) recommendations regarding--
                    (A) whether the program should be extended 
                so as to continue to provide training to 
                military psychologists in the prescription of 
                psychotropic medications; and
                    (B) any modifications that should be made 
                in the manner in which military psychologists 
                are trained and used to prescribe psychotropic 
                medications so as to improve the training 
                provided under the program, if the program is 
                extended.

SEC. 743. WAIVER OF COLLECTION OF PAYMENTS DUE FROM CERTAIN PERSONS 
                    UNAWARE OF LOSS OF CHAMPUS ELIGIBILITY.

    (a) Authority To Waive Collection.--The administering 
Secretaries may waive the collection of payments otherwise due 
from a person described in subsection (b) as a result of the 
receipt by the person of health benefits under section 1086 of 
title 10, United States Code, after the termination of the 
person's eligibility for such benefits.
    (b) Persons Eligible for Waiver.--A person shall be 
eligible for relief under subsection (a) if the person--
            (1) is a person described in paragraph (1) of 
        subsection (d) of section 1086 of title 10, United 
        States Code;
            (2) in the absence of such paragraph, would have 
        been eligible for health benefits under such section; 
        and
            (3) at the time of the receipt of such benefits, 
        satisfied the criteria specified in subparagraphs (A) 
        and (B) of paragraph (2) of such subsection.
    (c) Extent of Waiver Authority.--The authority to waive the 
collection of payments pursuant to this section shall apply 
with regard to health benefits provided under section 1086 of 
title 10, United States Code, to persons described in 
subsection (b) during the period beginning on January 1, 1967, 
and ending on the later of--
            (1) the termination date of any special enrollment 
        period provided under title XVIII of the Social 
        Security Act (42 U.S.C. 1395 et seq.) specifically for 
        such persons; and
            (2) July 1, 1996.
    (d) Definitions.--For purposes of this section, the term 
``administering Secretaries'' has the meaning given such term 
in section 1072(3) of title 10, United States Code.

SEC. 744. DEMONSTRATION PROGRAM TO TRAIN MILITARY MEDICAL PERSONNEL IN 
                    CIVILIAN SHOCK TRAUMA UNITS.

    (a) Demonstration Program.--(1) Not later than April 1, 
1996, the Secretary of Defense shall implement a demonstration 
program to evaluate the feasibility of providing shock trauma 
training for military medical personnel through one or more 
public or nonprofit hospitals. The Secretary shall carry out 
the program pursuant to an agreement with such hospitals.
    (2) Under the agreement with a hospital, the Secretary 
shall assign military medical personnel participating in the 
demonstration program to temporary duty in shock trauma units 
operated by the hospitals that are parties to the agreement.
    (3) The agreement shall require, as consideration for the 
services provided by military medical personnel under the 
agreement, that the hospital provide appropriate care to 
members of the Armed Forces and to other persons whose care in 
the hospital would otherwise require reimbursement by the 
Secretary. The value of the services provided by the hospitals 
shall be at least equal to the value of the services provided 
by military medical personnel under the agreement.
    (b) Termination of Program.--The authority of the Secretary 
of Defense to conduct the demonstration program under this 
section, and any agreement entered into under the demonstration 
program, shall expire on March 31, 1998.
    (c) Report and Evaluation of Program.--(1) Not later than 
March 1 of each year in which the demonstration program is 
conducted under this section, the Secretary of Defense shall 
submit to Congress a report describing the scope and activities 
of the demonstration program during the preceding year.
    (2) Not later than May 1, 1998, the Comptroller General of 
the United States shall submit to Congress a report evaluating 
the effectiveness of the demonstration program in providing 
shock trauma training for military medical personnel.

SEC. 745. STUDY REGARDING DEPARTMENT OF DEFENSE EFFORTS TO DETERMINE 
                    APPROPRIATE FORCE LEVELS OF WARTIME MEDICAL 
                    PERSONNEL.

    (a) Study Required.--The Comptroller General of the United 
States shall conduct a study to evaluate the reasonableness of 
the models used by each military department for determining the 
appropriate wartime force level for medical personnel in the 
department. The study shall include the following:
            (1) An assessment of the modeling techniques used 
        by each department.
            (2) An analysis of the data used in the models to 
        identify medical personnel requirements.
            (3) An identification of the ability of the models 
        to integrate personnel of reserve components to meet 
        department requirements.
            (4) An evaluation of the ability of the Secretary 
        of Defense to integrate the various modeling efforts 
        into a comprehensive, coordinated plan for obtaining 
        the optimum force level for wartime medical personnel.
    (b) Report of Study.--Not later than June 30, 1996, the 
Comptroller General shall report to Congress on the results of 
the study conducted under subsection (a).

SEC. 746. REPORT ON IMPROVED ACCESS TO MILITARY HEALTH CARE FOR COVERED 
                    BENEFICIARIES ENTITLED TO MEDICARE.

    Not later than March 1, 1996, the Secretary of Defense 
shall submit to Congress a report evaluating the feasibility, 
costs, and consequences for the military health care system of 
improving access to the system for covered beneficiaries under 
chapter 55 of title 10, United States Code, who have 
limitedaccess to military medical treatment facilities and are 
ineligible for the Civilian Health and Medical Program of the Uniformed 
Services under section 1086(d)(1) of such title. The alternatives that 
the Secretary shall consider to improve access for such covered 
beneficiaries shall include--
            (1) whether CHAMPUS should serve as a second payer 
        for covered beneficiaries who are entitled to hospital 
        insurance benefits under part A of title XVIII of the 
        Social Security Act (42 U.S.C. 1395c et seq.); and
            (2) whether such covered beneficiaries should be 
        offered enrollment in the Federal Employees Health 
        Benefits program under chapter 89 of title 5, United 
        States Code.

SEC. 747. REPORT ON EFFECT OF CLOSURE OF FITZSIMONS ARMY MEDICAL 
                    CENTER, COLORADO, ON PROVISION OF CARE TO MILITARY 
                    PERSONNEL, RETIRED MILITARY PERSONNEL, AND THEIR 
                    DEPENDENTS.

    (a) Effect of Closure on Members Experiencing Health 
Difficulties Associated With Persian Gulf Syndrome.--Not later 
than 90 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to Congress a report that--
            (1) assesses the effects of the closure of 
        Fitzsimons Army Medical Center, Colorado, on the 
        capability of the Department of Defense to provide 
        appropriate and adequate health care to members and 
        former members of the Armed Forces who suffer from 
        undiagnosed illnesses (or combination of illnesses) as 
        a result of service in the Armed Forces in the 
        Southwest Asia theater of operations during the Persian 
        Gulf conflict; and
            (2) describes the plans of the Secretary of Defense 
        and the Secretary of the Army to ensure that adequate 
        and appropriate health care is provided to such members 
        for such illnesses (or combination of illnesses).
    (b) Effect of Closure on Other Covered Beneficiaries.--The 
report required by subsection (a) shall also include--
            (1) an assessment of the effects of the closure of 
        Fitzsimons Army Medical Center on the capability of the 
        Department of Defense to provide appropriate and 
        adequate health care to the dependents of members and 
        former members of the Armed Forces and retired members 
        and their dependents who currently obtain care at the 
        medical center; and
            (2) a description of the plans of the Secretary of 
        Defense and the Secretary of the Army to ensure that 
        adequate and appropriate health care is provided to 
        such persons, as called for in the recommendations of 
        the Secretary of Defense for the closure of Fitzsimons 
        Army Medical Center.

SEC. 748. SENSE OF CONGRESS ON CONTINUITY OF HEALTH CARE SERVICES FOR 
                    COVERED BENEFICIARIES ADVERSELY AFFECTED BY 
                    CLOSURES OF MILITARY MEDICAL TREATMENT FACILITIES.

    (a) Findings.--Congress finds the following:
            (1) Military installations selected for closure in 
        the 1991 and 1993 rounds of the base closure process 
        will soon close.
            (2) Additional military installations have been 
        selected for closure in the 1995 round of the base 
        closure process.
            (3) Some of the military installations selected for 
        closure include military medical treatment facilities.
            (4) As a result of these base closures, tens of 
        thousands of covered beneficiaries under chapter 55 of 
        title 10, United States Code, who reside in the 
        vicinity of such installations will be left without 
        immediate access to military medical treatment 
        facilities.
    (b) Sense of Congress.--In light of the findings specified 
in subsection (a), it is the sense of Congress that the 
Secretary of Defense should take all appropriate steps 
necessary to ensure the continuation of medical and 
pharmaceutical benefits for covered beneficiaries adversely 
affected by the closure of military installations.

SEC. 749. STATE RECOGNITION OF MILITARY ADVANCE MEDICAL DIRECTIVES.

    (a) Requirement for Recognition by States.--(1) Chapter 53 
of title 10, United States Code, is amended by inserting after 
section 1044b the following new section:

``Sec. 1044c. Advance medical directives of members and dependents: 
                    requirement for recognition by States

    ``(a) Instruments To Be Given Legal Effect Without Regard 
to State Law.--An advance medical directive executed by a 
person eligible for legal assistance--
            ``(1) is exempt from any requirement of form, 
        substance, formality, or recording that is provided for 
        advance medical directives under the laws of a State; 
        and
            ``(2) shall be given the same legal effect as an 
        advance medical directive prepared and executed in 
        accordance with the laws of the State concerned.
    ``(b) Advance Medical Directives.--For purposes of this 
section, an advance medical directive is any written 
declaration that--
            ``(1) sets forth directions regarding the 
        provision, withdrawal, or withholding of life-
        prolonging procedures, including hydration and 
        sustenance, for the declarant whenever the declarant 
        has a terminal physical condition or is in a persistent 
        vegetative state; or
            ``(2) authorizes another person to make health care 
        decisions for the declarant, under circumstances stated 
        in the declaration, whenever the declarant is incapable 
        of making informed health care decisions.
    ``(c) Statement To Be Included.--(1) Under regulations 
prescribed by the Secretary concerned, an advance medical 
directive prepared by an attorney authorized to provide legal 
assistance shall contain a statement that sets forth the 
provisions of subsection (a).
    ``(2) Paragraph (1) shall not be construed to make 
inapplicable the provisions of subsection (a) to an advance 
medical directive that does not include a statement described 
in that paragraph.
    ``(d) States Not Recognizing Advance Medical Directives.--
Subsection (a) does not make an advance medical directive 
enforceable in a State that does not otherwise recognize and 
enforce advance medical directives under the laws of the State.
    ``(e) Definitions.--In this section:
            ``(1) The term `State' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, and a 
        possession of the United States.
            ``(2) The term `person eligible for legal 
        assistance' means a person who is eligible for legal 
        assistance under section 1044 of this title.
            ``(3) The term `legal assistance' means legal 
        services authorized under section 1044 of this 
        title.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
1044b the following:

``1044c. Advance medical directives of members and dependents: 
          requirement for recognition by States.''.

    (b) Effective Date.--Section 1044c of title 10, United 
States Code, shall take effect on the date of the enactment of 
this Act and shall apply to advance medical directives referred 
to in that section that are executed before, on, or after that 
date.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

                     Subtitle A--Acquisition Reform

SEC. 801. INAPPLICABILITY OF LIMITATION ON EXPENDITURE OF 
                    APPROPRIATIONS TO CONTRACTS AT OR BELOW SIMPLIFIED 
                    ACQUISITION THRESHOLD.

    Section 2207 of title 10, United States Code, is amended--
            (1) by inserting ``(a)'' before ``Money 
        appropriated''; and
            (2) by adding at the end the following new 
        subsection:
    ``(b) This section does not apply to a contract that is for 
an amount not greater than the simplified acquisition threshold 
(as defined in section 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(11))).''.

SEC. 802. AUTHORITY TO DELEGATE CONTRACTING AUTHORITY.

    (a) Repeal of Duplicative Authority and Restriction.--
Section 2356 of title 10, United States Code, is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 139 of title 10, United States Code, is 
amended by striking out the item relating to section 2356.

SEC. 803. CONTROL IN PROCUREMENTS OF CRITICAL AIRCRAFT AND SHIP SPARE 
                    PARTS.

    (a) Repeal.--Section 2383 of title 10, United States Code, 
is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 141 of such title is amended by striking 
out the item relating to section 2383.

SEC. 804. FEES FOR CERTAIN TESTING SERVICES.

    Section 2539b(c) of title 10, United States Code, is 
amended by inserting ``and indirect'' after ``recoup the 
direct'' in the second sentence.

SEC. 805. COORDINATION AND COMMUNICATION OF DEFENSE RESEARCH 
                    ACTIVITIES.

    Section 2364 of title 10, United States Code, is amended--
            (1) in subsection (b)(5), by striking out 
        ``milestone O, milestone I, and milestone II'' and 
        inserting in lieu thereof ``acquisition program''; and
            (2) in subsection (c), by striking out paragraphs 
        (2), (3), and (4) and inserting in lieu thereof the 
        following:
            ``(2) The term `acquisition program decision' has 
        the meaning prescribed by the Secretary of Defense in 
        regulations.''.

SEC. 806. ADDITION OF CERTAIN ITEMS TO DOMESTIC SOURCE LIMITATION.

    (a) Limitation.--(1) Paragraph (3) of section 2534(a) of 
title 10, United States Code, is amended to read as follows:
            ``(3) Components for naval vessels.--(A) The 
        following components:
                    ``(i) Air circuit breakers.
                    ``(ii) Welded shipboard anchor and mooring 
                chain with a diameter of four inches or less.
                    ``(iii) Vessel propellers with a diameter 
                of six feet or more.
            ``(B) The following components of vessels, to the 
        extent they are unique to marine applications: 
        gyrocompasses, electronic navigation chart systems, 
        steering controls, pumps, propulsion and machinery 
        control systems, and totally enclosed lifeboats.''.
    (2) Subsection (b) of section 2534 of such title is amended 
by adding at the end the following:
            ``(3) Manufacturer of vessel propellers.--In the 
        case of a procurement of vessel propellers referred to 
        in subsection (a)(3)(A)(ii), the manufacturer of the 
        propellers meets the requirements of this subsection 
        only if--
                    ``(A) the manufacturer meets the 
                requirements set forth in paragraph (1); and
                    ``(B) all castings incorporated into such 
                propellers are poured and finished in the 
                United States.''.
    (3) Paragraph (1) of section 2534(c) of such title is 
amended to read as follows:
            ``(1) Components for naval vessels.--Subsection (a) 
        does not apply to a procurement of spare or repair 
        parts needed to support components for naval vessels 
        produced or manufactured outside the United States.''.
    (4) Section 2534 of such title is amended by adding at the 
end the following new subsection:
    ``(h) Implementation of Naval Vessel Component 
Limitation.--In implementing subsection (a)(3)(B), the 
Secretary of Defense--
            ``(1) may not use contract clauses or 
        certifications; and
            ``(2) shall use management and oversight techniques 
        that achieve the objective of the subsection without 
        imposing a significant management burden on the 
        Government or the contractor involved.''.
    (5) Subsection (a)(3)(B) of section 2534 of title 10, 
United States Code, as amended by paragraph (1), shall apply 
only to contracts entered into after March 31, 1996.
    (b) Extension of Limitation Relating to Ball Bearings and 
Roller Bearings.--Section 2534(c)(3) of such title is amended 
by striking out ``October 1, 1995'' and inserting in lieu 
thereof ``October 1, 2000''.
    (c) Termination of Vessel Propeller Limitation.--Section 
2534(c) of such title is amended by adding at the end the 
following new paragraph:
            ``(4) Vessel propellers.--Subsection (a)(3)(A)(iii) 
        and this paragraph shall cease to be effective on the 
        date occurring two years after the date of the 
        enactment of the National Defense Authorization Act for 
        Fiscal Year 1996.''.
    (d) Inapplicability of Simplified Acquisition Limitation to 
Contracts for Ball Bearings and Roller Bearings.--Section 
2534(g) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``This section''; 
        and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) Paragraph (1) does not apply to contracts for items 
described in subsection (a)(5) (relating to ball bearings and 
roller bearings), notwithstanding section 33 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 429).''.

SEC. 807. ENCOURAGEMENT OF USE OF LEASING AUTHORITY.

    (a) In General.--(1) Section 2401a of title 10, United 
States Code, is amended--
            (A) by inserting before ``The Secretary of 
        Defense'' the following subsection heading: ``(b) 
        Limitation on Contracts With Terms of 18 Months or 
        More.--'';
            (B) by inserting after the section heading the 
        following:
    ``(a) Leasing of Commercial Vehicles and Equipment.--The 
Secretary of Defense may use leasing in the acquisition of 
commercial vehicles and equipment whenever the Secretary 
determines that leasing of such vehicles is practicable and 
efficient.''; and
            (C) by amending the section heading to read as 
        follows:

``Sec. 2401a. Lease of vehicles, equipment, vessels, and aircraft''.

    (2) The item relating to section 2401a in the table of 
sections at the beginning of chapter 141 of such title is 
amended to read as follows:

``2401a. Lease of vehicles, equipment, vessels, and aircraft.''.

    (b) Report.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives a report 
setting forth changes in legislation that would be required to 
facilitate the use of leasing in the acquisition of equipment 
by the Department of Defense.
    (c) Pilot Program.--(1) The Secretary of the Army may 
conduct a pilot program for leasing commercial utility cargo 
vehicles in accordance with this subsection.
    (2) Under the pilot program--
            (A) the Secretary may trade existing commercial 
        utility cargo vehicles of the Army for credit against 
        the costs of leasing new replacement commercial utility 
        cargo vehicles for the Army;
            (B) the quantities and trade-in value of commercial 
        utility cargo vehicles to be traded in shall be subject 
        to negotiation between the Secretary and the lessors of 
        the new replacement commercial utility cargo vehicles;
            (C) the lease agreement for a new commercial 
        utility cargo vehicle may be executed with or without 
        an option to purchase at the end of the lease period;
            (D) the lease period for a new commercial utility 
        cargo vehicle may not exceed the warranty period for 
        the vehicle; and
            (E) up to 40 percent of the validated requirement 
        for commercial utility cargo vehicles may be satisfied 
        by leasing such vehicles, except that one or more 
        options for satisfying the remainder of the validated 
        requirement may be provided for and exercised (subject 
        to the requirements of paragraph (6)).
    (3) In awarding contracts under the pilot program, the 
Secretary shall comply with section 2304 of title 10, United 
States Code.
    (4) The pilot program may not be commenced until--
            (A) the Secretary submits to the Committee on Armed 
        Services of the Senate and the Committee on National 
        Security of the House of Representatives a report that 
        contains the plans of the Secretary for implementing 
        the program and that sets forth in detail the savings 
        in operating and support costs expected to be derived 
        from retiring older commercial utility cargo vehicles, 
        as compared to the expected costs of leasing newer 
        commercial utility cargo vehicles; and
            (B) a period of 30 calendar days has elapsed after 
        submission of such report.
    (5) Not later than one year after the date on which the 
first lease under the pilot program is entered into, the 
Secretary of the Army shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the status of the 
pilot program. Such report shall be based on at least six 
months of experience in operating the pilot program.
    (6) The Secretary may exercise an option provided for under 
paragraph (2) only after a period of 60 days has elapsed after 
the submission of the report.
    (7) No lease of commercial utility cargo vehicles may be 
entered into under the pilot program after September 30, 2000.

SEC. 808. COST REIMBURSEMENT RULES FOR INDIRECT COSTS ATTRIBUTABLE TO 
                    PRIVATE SECTOR WORK OF DEFENSE CONTRACTORS.

    (a) Defense Capability Preservation Agreement.--The 
Secretary of Defense may enter into an agreement, to be known 
as a ``defense capability preservation agreement'', with a 
defense contractor under which the cost reimbursement rules 
described in subsection (b) shall be applied. Such an agreement 
may be entered into in any case in which the Secretary 
determines that the application of such cost reimbursement 
rules would facilitate the achievement of the policy objectives 
set forth in section 2501(b) of title 10, United States Code.
    (b) Cost Reimbursement Rules.--(1) The cost reimbursement 
rules applicable under an agreement entered into under 
subsection (a) are as follows:
            (A) The Department of Defense shall, in determining 
        the reimbursement due a contractor for its indirect 
        costs of performing a defense contract, allow the 
        contractor to allocate indirect costs to its private 
        sector work only to the extent of the contractor's 
        allocable indirect private sector costs, subject to 
        subparagraph (C).
            (B) For purposes of subparagraph (A), the allocable 
        indirect private sector costs of a contractor are those 
        costs of the contractor that are equal to the sum of--
                    (i) the incremental indirect costs 
                attributable to such work; and
                    (ii) the amount by which the revenue 
                attributable to such private sector work 
                exceeds the sum of--
                            (I) the direct costs attributable 
                        to such private sector work; and
                            (II) the incremental indirect costs 
                        attributable to such private sector 
                        work.
            (C) The total amount of allocable indirect private 
        sector costs for a contract in any year of the 
        agreement may not exceed the amount of indirect costs 
        that a contractor would have allocated to its private 
        sector work during that year in accordance with the 
        contractor's established accounting practices.
    (2) The cost reimbursement rules set forth in paragraph (1) 
may be modified by the Secretary of Defense if the Secretary of 
Defense determines that modifications are appropriate to the 
particular situation to facilitate achievement of the policy 
set forth in section 2501(b) of title 10, United States Code.
    (c) Implementation.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
establish application procedures and procedures for expeditious 
consideration of defense capability preservation agreements as 
authorized by this section.
    (d) Contracts Covered.--An agreement entered into with a 
contractor under subsection (a) shall apply to each Department 
of Defense contract with the contractor in effect on the date 
on which the agreement is entered into and each Department of 
Defense contract that is awarded to the contractor during the 
term of the agreement.
    (e) Reports.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report setting forth--
            (1) the number of applications received and the 
        number of applications approved for defense capability 
        preservation agreements; and
            (2) any changes to the authority in this section 
        that the Secretary recommends to further facilitate the 
        policy set forth in section 2501(b) of title 10, United 
        States Code.

SEC. 809. SUBCONTRACTS FOR OCEAN TRANSPORTATION SERVICES.

    Notwithstanding any other provision of law, neither section 
901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b)) nor 
section 2631 of title 10, United States Code, shall be included 
before May 1, 1996, on any list promulgated under section 34(b) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
430(b)).

SEC. 810. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS.

    Section 6009 of the Federal Acquisition Streamlining Act of 
1994 (Public Law 103-355; 108 Stat. 3367) is amended to read as 
follows:

``SEC. 6009. PROMPT MANAGEMENT DECISIONS AND IMPLEMENTATION OF AUDIT 
                    RECOMMENDATIONS.

    ``(a) Management Decisions.--(1) The head of a Federal 
agency shall make management decisions on all findings and 
recommendations set forth in an audit report of the inspector 
general of the agency within a maximum of six months after the 
issuance of the report.
    ``(2) The head of a Federal agency shall make management 
decisions on all findings and recommendations set forth in an 
audit report of any auditor from outside the Federal Government 
within a maximum of six months after the date on which the head 
of the agency receives the report.
    ``(b) Completion of Final Action.--The head of a Federal 
agency shall complete final action on each management decision 
required with regard to a recommendation in an inspector 
general's report under subsection (a)(1) within 12 months after 
the date of the inspector general's report. If the head of the 
agency fails to complete final action with regard to a 
management decision within the 12-month period, the inspector 
general concerned shall identify the matter in each of the 
inspector general's semiannual reports pursuant to section 
5(a)(3) of the Inspector General Act of 1978 (5 U.S.C. App.) 
until final action on the management decision is completed.''.

SEC. 811. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SUBCONTRACTING 
                    PLANS.

    (a) Revision of Authority.--Subsection (a) of section 834 
of National Defense Authorization Act for Fiscal Years 1990 and 
1991 (15 U.S.C. 637 note) is amended by striking out paragraph 
(1) and inserting in lieu thereof the following:
    ``(1) The Secretary of Defense shall establish a test 
program under which contracting activities in the military 
departments and the Defense Agencies are authorized to 
undertake one or more demonstration projects to determine 
whether the negotiation and administration of comprehensive 
subcontracting plans will reduce administrative burdens on 
contractors while enhancing opportunities provided under 
Department of Defense contracts for small business concerns and 
small business concerns owned and controlled by socially and 
economically disadvantaged individuals. In selecting the 
contracting activities to undertake demonstration projects, the 
Secretary shall take such action as is necessary to ensure that 
a broad range of the supplies and services acquired by the 
Department of Defense are included in the test program.''.
    (b) Covered Contractors.--Subsection (b) of such section is 
amended by striking out paragraph (3) and inserting in lieu 
thereof the following:
    ``(3) A Department of Defense contractor referred to in 
paragraph (1) is, with respect to a comprehensive 
subcontracting plan negotiated in any fiscal year, a business 
concern that,during the immediately preceding fiscal year, 
furnished the Department of Defense with supplies or services 
(including professional services, research and development services, 
and construction services) pursuant to at least three Department of 
Defense contracts having an aggregate value of at least $5,000,000.''.
    (c) Technical Amendments.--Such section is amended--
            (1) by striking out subsection (g); and
            (2) by redesignating subsection (h) as subsection 
        (g).

SEC. 812. PROCUREMENT OF ITEMS FOR EXPERIMENTAL OR TEST PURPOSES.

    Section 2373(b) of title 10, United States Code, is amended 
by inserting ``only'' after ``applies'' in the second sentence.

SEC. 813. USE OF FUNDS FOR ACQUISITION OF DESIGNS, PROCESSES, TECHNICAL 
                    DATA, AND COMPUTER SOFTWARE.

    Section 2386(3) of title 10, United States Code, is amended 
to read as follows:
            ``(3) Design and process data, technical data, and 
        computer software.''.

SEC. 814. INDEPENDENT COST ESTIMATES FOR MAJOR DEFENSE ACQUISITION 
                    PROGRAMS.

    Section 2434(b)(1)(A) of title 10, United States Code, is 
amended to read as follows:
                    ``(A) be prepared--
                            ``(i) by an office or other entity 
                        that is not under the supervision, 
                        direction, or control of the military 
                        department, Defense Agency, or other 
                        component of the Department of Defense 
                        that is directly responsible for 
                        carrying out the development or 
                        acquisition of the program; or
                            ``(ii) if the decision authority 
                        for the program has been delegated to 
                        an official of a military department, 
                        Defense Agency, or other component of 
                        the Department of Defense, by an office 
                        or other entity that is not directly 
                        responsible for carrying out the 
                        development or acquisition of the 
                        program; and''.

SEC. 815. CONSTRUCTION, REPAIR, ALTERATION, FURNISHING, AND EQUIPPING 
                    OF NAVAL VESSELS.

    (a) Applicability of Certain Law.--Chapter 633 of title 10, 
United States Code, is amended by inserting after section 7297 
the following:

``Sec. 7299. Contracts: applicability of Walsh-Healey Act

    ``Each contract for the construction, alteration, 
furnishing, or equipping of a naval vessel is subject to the 
Walsh-Healey Act (41 U.S.C. 35 et seq.) unless the President 
determines that this requirement is not in the interest of 
national defense.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 7297 the following:

``7299. Contracts: applicability of Walsh-Healey Act.''.

                       Subtitle B--Other Matters

SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated 
under section 301(5), $12,000,000 shall be available for 
carrying out the provisions of chapter 142 of title 10, United 
States Code.
    (b) Specific Programs.--Of the amounts made available 
pursuant to subsection (a), $600,000 shall be available for 
fiscal year 1996 for the purpose of carrying out programs 
sponsored by eligible entities referred to in subparagraph (D) 
of section 2411(1) of title 10, United States Code, that 
provide procurement technical assistance in distressed areas 
referred to in subparagraph (B) of section 2411(2) of such 
title. If there is an insufficient number of satisfactory 
proposals for cooperative agreements in such distressed areas 
to allow effective use of the funds made available in 
accordance with this subsection in such areas, the funds shall 
be allocated among the Defense Contract Administration Services 
regions in accordance with section 2415 of such title.

SEC. 822. DEFENSE FACILITY-WIDE PILOT PROGRAM.

    (a) Authority To Conduct Defense Facility-Wide Pilot 
Program.--The Secretary of Defense may conduct a pilot program, 
to be known as the ``defense facility-wide pilot program'', for 
the purpose of determining the potential for increasing the 
efficiency and effectiveness of the acquisition process in 
facilities by using commercial practices on a facility-wide 
basis.
    (b) Designation of Participating Facilities.--(1) Subject 
to paragraph (2), the Secretary may designate up to two 
facilities as participants in the defense facility-wide pilot 
program.
    (2) The Secretary may designate for participation in the 
pilot program only those facilities that are authorized to be 
so designated in a law authorizing appropriations for national 
defense programs that is enacted after the date of the 
enactment of this Act.
    (c) Scope of Program.--At a facility designated as a 
participant in the pilot program, the pilot program shall 
consist of the following:
            (1) All contracts and subcontracts for defense 
        supplies and services that are performed at the 
        facility.
            (2) All Department of Defense contracts and all 
        subcontracts under Department of Defense contracts 
        performed elsewhere that the Secretary determines are 
        directly and substantially related to the production of 
        defense supplies and services at the facility and are 
        necessary for the pilot program.
    (d) Criteria for Designation of Participating Facilities.--
The Secretary shall establish criteria for selecting a facility 
for designation as a participant in the pilot program. In 
developing such criteria, the Secretary shall consider the 
following:
            (1) The number of existing and anticipated 
        contracts and subcontracts performed at the facility--
                    (A) for which contractors are required to 
                provide certified cost or pricing data pursuant 
                to section 2306a of title 10, United States 
                Code; and
                    (B) which are administered with the 
                application of cost accounting standards under 
                section 26(f) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 422(f)).
            (2) The relationship of the facility to other 
        organizations and facilities performing under contracts 
        with the Department of Defense and subcontracts under 
        such contracts.
            (3) The impact that the participation of the 
        facility under the pilot program would have on 
        competing domestic manufacturers.
            (4) Such other factors as the Secretary considers 
        appropriate.
    (e) Notification.--(1) The Secretary shall transmit to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a written 
notification of each facility proposed to be designated by the 
Secretary for participation in the pilot program.
    (2) The Secretary shall include in the notification 
regarding a facility designated for participation in the 
program a management plan addressing the following:
            (A) The proposed treatment of research and 
        development contracts or subcontracts to be performed 
        at the facility during the pilot program.
            (B) The proposed treatment of the cost impact of 
        the use of commercial practices on the award and 
        administration of contracts and subcontracts performed 
        at the facility.
            (C) The proposed method for reimbursing the 
        contractor for existing and new contracts.
            (D) The proposed method for measuring the 
        performance of the facility for meeting the management 
        goals of the Secretary.
            (E) Estimates of the annual amount and the total 
        amount of the contracts and subcontracts covered under 
        the pilot program.
    (3)(A) The Secretary shall ensure that the management plan 
for a facility provides for attainment of the following 
objectives:
            (i) A significant reduction of the cost to the 
        Government for programs carried out at the facility.
            (ii) A reduction of the schedule associated with 
        programs carried out at the facility.
            (iii) An increased use of commercial practices and 
        procedures for programs carried out at the facility.
            (iv) Protection of a domestic manufacturer 
        competing for contracts at such facility from being 
        placed at a significant competitive disadvantage by the 
        participation of the facility in the pilot program.
    (B) The management plan for a facility shall also require 
that all or substantially all of the contracts to be awarded 
and performed at the facility after the designation of that 
facility under subsection (b), and all or substantially all of 
the subcontracts to be awarded under those contracts and 
performed at the facility after the designation, be--
            (i) for the production of supplies or services on a 
        firm-fixed price basis;
            (ii) awarded without requiring the contractors or 
        subcontractors to provide certified cost or pricing 
        data pursuant to section 2306a of title 10, United 
        States Code; and
            (iii) awarded and administered without the 
        application of cost accounting standards under section 
        26(f) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 422(f)).
    (f) Exemption From Certain Requirements.--In the case of a 
contract or subcontract that is to be performed at a facility 
designated for participation in the defense facility-wide pilot 
program and that is subject to section 2306a of title 10, 
United States Code, or section 26(f) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 422(f)), the Secretary of 
Defense may exempt such contract or subcontract from the 
requirement to obtain certified cost or pricing data under such 
section 2306a or the requirement to apply mandatory cost 
accounting standards under such section 26(f) if the Secretary 
determines that the contract or subcontract--
            (1) is within the scope of the pilot program (as 
        described in subsection (c)); and
            (2) is fairly and reasonably priced based on 
        information other than certified cost and pricing data.
    (g) Special Authority.--The authority provided under 
subsection (a) includes authority for the Secretary of 
Defense--
            (1) to apply any amendment or repeal of a provision 
        of law made in this Act to the pilot program before the 
        effective date of such amendment or repeal; and
            (2) to apply to a procurement of items other than 
        commercial items under such program--
                    (A) the authority provided in section 34 of 
                the Office of Federal Procurement Policy Act 
                (41 U.S.C. 430) to waive a provision of law in 
                the case of commercial items, and
                    (B) any exception applicable under this Act 
                or the Federal Acquisition Streamlining Act of 
                1994 (Public Law 103-355) (or an amendment made 
                by a provision of either Act) in the case of 
                commercial items,
        before the effective date of such provision (or 
        amendment) to the extent that the Secretary determines 
        necessary to test the application of such waiver or 
        exception to procurements of items other than 
        commercial items.
    (h) Applicability.--(1) Subsections (f) and (g) apply to 
the following contracts, if such contracts are within the scope 
of the pilot program at a facility designated for the pilot 
program under subsection (b):
            (A) A contract that is awarded or modified during 
        the period described in paragraph (2).
            (B) A contract that is awarded before the beginning 
        of such period, that is to be performed (or may be 
        performed), in whole or in part, during such period, 
        and that may be modified as appropriate at no cost to 
        the Government.
    (2) The period referred to in paragraph (1), with respect 
to a facility designated under subsection (b), is the period 
that--
            (A) begins 45 days after the date of the enactment 
        of the Act authorizing the designation of that facility 
        in accordance with paragraph (2) of such subsection; 
        and
            (B) ends on September 30, 2000.
    (i) Commercial Practices Encouraged.--With respect to 
contracts and subcontracts within the scope of the defense 
facility-wide pilot program, the Secretary of Defense may, to 
the extent the Secretary determines appropriate and in 
accordance with applicable law, adopt commercial practices in 
the administration of contracts and subcontracts. Such 
commercial practices may include the following:
            (1) Substitution of commercial oversight and 
        inspection procedures for Government audit and access 
        to records.
            (2) Incorporation of commercial oversight, 
        inspection, and acceptance procedures.
            (3) Use of alternative dispute resolution 
        techniques (including arbitration).
            (4) Elimination of contract provisions authorizing 
        the Government to make unilateral changes to contracts.

SEC. 823. TREATMENT OF DEPARTMENT OF DEFENSE CABLE TELEVISION FRANCHISE 
                    AGREEMENTS.

    Not later than 180 days after the date of the enactment of 
this Act, the chief judge of the United States Court of Federal 
Claims shall transmit to Congress a report containing an 
advisory opinion on the following two questions:
            (1) Is it within the power of the executive branch 
        to treat cable television franchise agreements for the 
        construction, installation, or capital improvement of 
        cable television systems at military installations of 
        the Department of Defense as contracts under part 49 of 
        the Federal Acquisition Regulation without violating 
        title VI of the Communications Act of 1934 (47 U.S.C. 
        521 et seq.)?
            (2) If the answer to the question in paragraph (1) 
        is in the affirmative, is the executive branch required 
        by law to so treat such franchise agreements?

SEC. 824. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

    Section 831(j)(1) of the National Defense Authorization Act 
for Fiscal Year 1991 (10 U.S.C. 2301 note) is amended by 
striking out ``1995'' and inserting in lieu thereof ``1996''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                      Subtitle A--General Matters

SEC. 901. ORGANIZATION OF THE OFFICE OF THE SECRETARY OF DEFENSE.

    (a) Findings.--Congress makes the following findings:
            (1) The statutory provisions that as of the date of 
        the enactment of this Act govern the organization of 
        the Office of the Secretary of Defense have evolved 
        from enactment of a number of executive branch 
        legislative proposals and congressional initiatives 
        over a period of years.
            (2) The May 1995 report of the congressionally 
        mandated Commission on Roles and Missions of the Armed 
        Forces included a number of recommendations relating to 
        the Office of the Secretary of Defense.
            (3) The Secretary of Defense has decided to create 
        a special Department task force and to conduct other 
        reviews to review many of the Commission's 
        recommendations.
            (4) The Secretary of Defense has decided to 
        institute a 5 percent per year reduction of civilian 
        personnel assigned to the Office of the Secretary of 
        Defense, including the Washington Headquarters Service 
        and the Defense Support Activities, for the period from 
        fiscal year 1996 through fiscal year 2001.
            (5) Over the ten-year period from 1986 through 
        1995, defense spending in real dollars has been reduced 
        by 34 percent and military end-strengths have been 
        reduced by 28 percent. During the same period, the 
        number of civilian employees of the Office of the 
        Secretary of Defense has increased by 22 percent.
            (6) To achieve greater efficiency and to revalidate 
        the role and mission of the Office of the Secretary of 
        Defense, a comprehensive review of the organizations 
        and functions of that Office and of the personnel 
        needed to carry out those functions is required.
    (b) Review.--The Secretary of Defense shall conduct a 
further review of the organizations and functions of the Office 
of the Secretary of Defense, including the Washington 
Headquarters Service and the Defense Support Activities, and 
the personnel needed to carry out those functions. The review 
shall include the following:
            (1) An assessment of the appropriate functions of 
        the Office and whether the Office of the Secretary of 
        Defense or some of its component parts should be 
        organized along mission lines.
            (2) An assessment of the adequacy of the present 
        organizational structure to efficiently and effectively 
        support the Secretary in carrying out his 
        responsibilities in a manner that ensures civilian 
        authority in the Department of Defense.
            (3) An assessment of the advantages and 
        disadvantages of the use of political appointees to 
        fill the positions of the various Under Secretaries of 
        Defense, Assistant Secretaries of Defense, and Deputy 
        Under Secretaries of Defense.
            (4) An assessment of the extent of unnecessary 
        duplication of functions between the Office of the 
        Secretary of Defense and the Joint Staff.
            (5) An assessment of the extent of unnecessary 
        duplication of functions between the Office of the 
        Secretary of Defense and the military departments.
            (6) An assessment of the appropriate number of 
        positions referred to in paragraph (3) and of Deputy 
        Assistant Secretaries of Defense.
            (7) An assessment of whether some or any of the 
        functions currently performed by the Office of 
        Humanitarian and Refugee Affairs are more properly or 
        effectively performed by another agency of Government 
        or elsewhere within the Department of Defense.
            (8) An assessment of the efficacy of the Joint 
        Requirements Oversight Council and whether it is 
        advisable or necessary to establish a statutory charter 
        for this organization.
            (9) An assessment of any benefits or efficiencies 
        derived from decentralizing certain functions currently 
        performed by the Office of the Secretary of Defense.
            (10) An assessment of the appropriate size, number, 
        and functional responsibilities of the Defense Agencies 
        and other Department of Defense support organizations.
    (c) Report.--Not later than March 1, 1996, the Secretary of 
Defense shall submit to the congressional defense committees a 
report containing--
            (1) his findings and conclusions resulting from the 
        review under subsection (b); and
            (2) a plan for implementing resulting 
        recommendations, including proposals for legislation 
        (with supporting rationale) that would be required as a 
        result of the review.
    (d) Personnel Reduction.--(1) Effective October 1, 1999, 
the number of OSD personnel may not exceed 75 percent of the 
number of OSD personnel as of October 1, 1994.
    (2) For purposes of this subsection, the term ``OSD 
personnel'' means military and civilian personnel of the 
Department of Defense who are assigned to, or employed in, 
functions in the Office of the Secretary of Defense (including 
Direct Support Activities of that Office and the Washington 
Headquarters Services of the Department of Defense).
    (3) In carrying out reductions in the number of personnel 
assigned to, or employed in, the Office of the Department of 
Defense in order to comply with paragraph (1), the Secretary 
may not reassign functions solely in order to evade the 
requirement contained in that paragraph.
    (4) If the Secretary of Defense determines, and certifies 
to Congress, that the limitation in paragraph (1) would 
adversely affect United States national security, the 
limitation under paragraph (1) shall be applied by substituting 
``80 percent'' for ``75 percent''.

SEC. 902. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF DEFENSE 
                    POSITIONS.

    (a) Reduction.--Section 138(a) of title 10, United States 
Code, is amended by striking out ``eleven'' and inserting in 
lieu thereof ``ten''.
    (b) Conforming Amendment.--Section 5315 of title 5, United 
States Code, is amended by striking out ``(11)'' after 
``Assistant Secretaries of Defense'' and inserting in lieu 
thereof ``(10)''.

SEC. 903. DEFERRED REPEAL OF VARIOUS STATUTORY POSITIONS AND OFFICES IN 
                    OFFICE OF THE SECRETARY OF DEFENSE.

    (a) Effective Date.--The amendments made by this section 
shall take effect on January 31, 1997.
    (b) Termination of Specification by Law of ASD Positions.--
Subsection (b) of section 138 of title 10, United States Code, 
is amended to read as follows:
    ``(b) The Assistant Secretaries shall perform such duties 
and exercise such powers as the Secretary of Defense may 
prescribe.''.
    (c) Repeal of Certain OSD Presidential Appointment 
Positions.--The following sections of chapter 4 of such title 
are repealed:
            (1) Section 133a, relating to the Deputy Under 
        Secretary of Defense for Acquisition and Technology.
            (2) Section 134a, relating to the Deputy Under 
        Secretary of Defense for Policy.
            (3) Section 134a, relating to the Director of 
        Defense Research and Engineering.
            (4) Section 142, relating to the Assistant to the 
        Secretary of Defense for Nuclear and Chemical and 
        Biological Defense Programs.
    (d) Director of Military Relocation Assistance Programs.--
Section 1056 of such title is amended by striking out 
subsection (d).
    (e) Conforming Amendments Relating to Repeal of Various OSD 
Positions.--Chapter 4 of such title is further amended--
            (1) in section 131(b)--
                    (A) by striking out paragraphs (6) and (8); 
                and
                    (B) by redesignating paragraphs (7), (9), 
                (10), and (11), as paragraphs (6), (7), (8), 
                and (9), respectively;
            (2) in section 138(d), by striking out ``the Under 
        Secretaries of Defense, and the Director of Defense 
        Research and Engineering'' and inserting in lieu 
        thereof ``and the Under Secretaries of Defense''; and
            (3) in the table of sections at the beginning of 
        the chapter, by striking out the items relating to 
        sections 133a, 134a, 137, 139, and 142.
    (f) Conforming Amendments Relating to Repeal of 
Specification of ASD Positions.--
            (1) Section 176(a)(3) of title 10, United States 
        Code, is amended--
                    (A) by striking out ``Assistant Secretary 
                of Defense for Health Affairs'' and inserting 
                in lieu thereof ``official in the Department of 
                Defense with principal responsibility for 
                health affairs''; and
                    (B) by striking out ``Chief Medical 
                Director of the Department of Veterans 
                Affairs'' and inserting in lieu thereof ``Under 
                Secretary for Health of the Department of 
                Veterans Affairs''.
            (2) Section 1216(d) of such title is amended by 
        striking out ``Assistant Secretary of Defense for 
        Health Affairs'' and inserting in lieu thereof 
        ``official in the Department of Defense with principal 
        responsibility for health affairs''.
            (3) Section 1587(d) of such title is amended by 
        striking out ``Assistant Secretary of Defense for 
        Manpower and Logistics'' and inserting in lieu thereof 
        ``official in the Department of Defense with principal 
        responsibility for personnel and readiness''.
            (4) The text of section 10201 of such title is 
        amended to read as follows:
    ``The official in the Department of Defense with 
responsibility for overall supervision of reserve component 
affairs of the Department of Defense is the official designated 
by the Secretary of Defense to have that responsibility.''.
            (5) Section 1211(b)(2) of the National Defense 
        Authorization Act for Fiscal Years 1988 and 1989 (P.L. 
        100-180; 101 Stat 1155; 10 U.S.C. 167 note) is amended 
        by striking out ``the Assistant Secretary of Defense 
        for Special Operations and Low Intensity Conflict'' and 
        inserting in lieu thereof ``the official designated by 
        the Secretary of Defense to have principal 
        responsibility for matters relating to special 
        operations and low intensity conflict''.
    (g) Repeal of Minimum Number of Senior Staff for Specified 
Assistant Secretary of Defense.--Section 355 of the National 
Defense Authorization Act for Fiscal Year 1991 (Public Law 101-
510; 104 Stat. 1540) is repealed.

SEC. 904. REDESIGNATION OF THE POSITION OF ASSISTANT TO THE SECRETARY 
                    OF DEFENSE FOR ATOMIC ENERGY.

    (a) In General.--(1) Section 142 of title 10, United States 
Code, is amended--
            (A) by striking out the section heading and 
        inserting in lieu thereof the following:

``Sec. 142. Assistant to the Secretary of Defense for Nuclear and 
                    Chemical and Biological Defense Programs'';

            (B) in subsection (a), by striking out ``Assistant 
        to the Secretary of Defense for Atomic Energy'' and 
        inserting in lieu thereof ``Assistant to the Secretary 
        of Defense for Nuclear and Chemical and Biological 
        Defense Programs''; and
            (C) by striking out subsection (b) and inserting in 
        lieu thereof the following:
    ``(b) The Assistant to the Secretary shall--
            ``(1) advise the Secretary of Defense on nuclear 
        energy, nuclear weapons, and chemical and biological 
        defense;
            ``(2) serve as the Staff Director of the Nuclear 
        Weapons Council established by section 179 of this 
        title; and
            ``(3) perform such additional duties as the 
        Secretary may prescribe.''.
    (2) The item relating to such section in the table of 
sections at the beginning of chapter 4 of such title is amended 
to read as follows:

``142. Assistant to the Secretary of Defense for Nuclear and Chemical 
          and Biological Defense Programs.''.

    (b) Conforming Amendments.--(1) Section 179(c)(2) of title 
10, United States Code, is amended by striking out ``The 
Assistant to the Secretary of Defense for Atomic Energy'' and 
inserting in lieu thereof ``The Assistant to the Secretary of 
Defense for Nuclear and Chemical and Biological Defense 
Programs''.
    (2) Section 5316 of title 5, United States Code, is amended 
by striking out ``The Assistant to the Secretary of Defense for 
Atomic Energy, Department of Defense.'' and inserting in lieu 
thereof the following:
            ``Assistant to the Secretary of Defense for Nuclear 
        and Chemical and Biological Defense Programs, 
        Department of Defense.''.

SEC. 905. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

    (a) In General.--(1) Chapter 7 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 181. Joint Requirements Oversight Council

    ``(a) Establishment.--The Secretary of Defense shall 
establish a Joint Requirements Oversight Council in the 
Department of Defense.
    ``(b) Mission.--In addition to other matters assigned to it 
by the President or Secretary of Defense, the Joint 
Requirements Oversight Council shall--
            ``(1) assist the Chairman of the Joint Chiefs of 
        Staff in identifying and assessing the priority of 
        joint military requirements (including existing systems 
        and equipment) to meet the national military strategy;
            ``(2) assist the Chairman in considering 
        alternatives to any acquisition program that has been 
        identified to meet military requirements by evaluating 
        the cost, schedule, and performance criteria of the 
        program and of the identified alternatives; and
            ``(3) as part of its mission to assist the Chairman 
        in assigning joint priority among existing and future 
        programs meeting valid requirements, ensure that the 
        assignment of such priorities conforms to and reflects 
        resource levels projected by the Secretary of Defense 
        through defense planning guidance.
    ``(c) Composition.--(1) The Joint Requirements Oversight 
Council is composed of--
            ``(A) the Chairman of the Joint Chiefs of Staff, 
        who is the chairman of the Council;
            ``(B) an Army officer in the grade of general;
            ``(C) a Navy officer in the grade of admiral;
            ``(D) an Air Force officer in the grade of general; 
        and
            ``(E) a Marine Corps officer in the grade of 
        general.
    ``(2) Members of the Council, other than the Chairman of 
the Joint Chiefs of Staff, shall be selected by the Chairman of 
the Joint Chiefs of Staff, after consultation with the 
Secretary of Defense, from officers in the grade of general or 
admiral, as the case may be, who are recommended for such 
selection by the Secretary of the military department 
concerned.
    ``(3) The functions of the Chairman of the Joint Chiefs of 
Staff as chairman of the Council may only be delegated to the 
Vice Chairman of the Joint Chiefs of Staff.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``181. Joint Requirements Oversight Council.''.

    (b) Effective Date.--The amendments made by this section 
shall take effect on January 31, 1997.

SEC. 906. RESTRUCTURING OF DEPARTMENT OF DEFENSE ACQUISITION 
                    ORGANIZATION AND WORKFORCE.

    (a) Restructuring Report.--Not later than March 1, 1996, 
the Secretary of Defense shall submit to Congress a report on 
the acquisition organization and workforce of the Department of 
Defense. The report shall include--
            (1) the plan described in subsection (b); and
            (2) the assessment of streamlining and 
        restructuring options described in subsection (c).
    (b) Plan for Restructuring.--(1) The Secretary shall 
include in the report under subsection (a) a plan on how to 
restructure the current acquisition organization of the 
Department of Defense in a manner that would enable the 
Secretary to accomplish the following:
            (A) Reduce the number of military and civilian 
        personnel assigned to, or employed in, acquisition 
        organizations of the Department of Defense (as defined 
        by the Secretary) by 25 percent over a period of five 
        years, beginning on October 1, 1995.
            (B) Eliminate duplication of functions among 
        existing acquisition organizations of the Department of 
        Defense.
            (C) Maximize opportunity for consolidation among 
        acquisition organizations of the Department of Defense 
        to reduce management overhead.
    (2) In the report, the Secretary shall also identify any 
statutory requirement or congressional directive that inhibits 
any proposed restructuring plan or reduction in the size of the 
defense acquisition organization.
    (3) In designing the plan under paragraph (1), the 
Secretary shall give full consideration to the process 
efficiencies expected to be achieved through the implementation 
of the Federal Acquisition Streamlining Act of 1994 (Public Law 
103-355), the Federal Acquisition Reform Act of 1995 (division 
D of this Act), and other ongoing initiatives to increase the 
use of commercial practices and reduce contract overhead in the 
defense procurement system.
    (c) Assessment of Specified Restructuring Options.--The 
Secretary shall include in the report under subsection (a) a 
detailed assessment of each of the following options for 
streamlining and restructuring the existing defense acquisition 
organization, together with a specific recommendation as to 
whether each such option should be implemented:
            (1) Consolidation of certain functions of the 
        Defense Contract Audit Agency and the Defense Contract 
        Management Command.
            (2) Contracting for performance of a significant 
        portion of the workload of the Defense Contract Audit 
        Agency and other Defense Agencies that perform 
        acquisition functions.
            (3) Consolidation or selected elimination of 
        Department of Defense acquisition organizations.
            (4) Any other defense acquisition infrastructure 
        streamlining or restructuring option the Secretary may 
        determine.
    (d) Reduction of Acquisition Workforce.--(1) The Secretary 
of Defense shall accomplish reductions in defense acquisition 
personnel positions during fiscal year 1996 so that the total 
number of such personnel as of October 1, 1996, is less than 
the total number of such personnel as of October 1, 1995, by at 
least 15,000.
    (2) For purposes of this subsection, the term ``defense 
acquisition personnel'' means military and civilian personnel 
assigned to, or employed in, acquisition organizations of the 
Department of Defense (as specified in Department of Defense 
Instruction numbered 5000.58 dated January 14, 1992) with the 
exception of personnel who possess technical competence in 
trade-skill maintenance and repair positions involved in 
performing depot maintenance functions.

SEC. 907. REPORT ON NUCLEAR POSTURE REVIEW AND ON PLANS FOR NUCLEAR 
                    WEAPONS MANAGEMENT IN EVENT OF ABOLITION OF 
                    DEPARTMENT OF ENERGY.

    (a) Report Required.--The Secretary of Defense shall submit 
to Congress a report concerning the nuclear weapons complex. 
The report shall set forth--
            (1) the Secretary's views on the effectiveness of 
        the Department of Energy in managing the nuclear 
        weapons complex, including the fulfillment of the 
        requirements for nuclear weapons established for the 
        Department of Energy in the Nuclear Posture Review; and
            (2) the Secretary's recommended plan for the 
        incorporation into the Department of Defense of the 
        national security programs of the Department of Energy 
        if the Department of Energy should be abolished and 
        those programs be transferred to the Department of 
        Defense.
    (b) Definition.--For purposes of this section, the term 
``Nuclear Posture Review'' means the Department of Defense 
Nuclear Posture Review as contained in the report entitled 
``Report of the Secretary of Defense to the President and the 
Congress'', dated February 19, 1995, or in subsequent such 
reports.
    (c) Submission of Report.--The report under subsection (a) 
shall be submitted not later than March 15, 1996.

SEC. 908. REDESIGNATION OF ADVANCED RESEARCH PROJECTS AGENCY.

    (a) Redesignation.--The agency in the Department of Defense 
known as the Advanced Research Projects Agency shall after the 
date of the enactment of this Act be designated as the Defense 
Advanced Research Projects Agency.
    (b) References.--Any reference in any law, regulation, 
document, record, or other paper of the United States or in any 
provision of this Act to the Advanced Research Projects Agency 
shall be considered to be a reference to the Defense Advanced 
Research Projects Agency.

                    Subtitle B--Financial Management

SEC. 911. TRANSFER AUTHORITY REGARDING FUNDS AVAILABLE FOR FOREIGN 
                    CURRENCY FLUCTUATIONS.

    (a) Transfers to Military Personnel Accounts Authorized.--
Section 2779 of title 10, United States Code, is amended by 
adding at the end the following:
    ``(c) Transfers to Military Personnel Accounts.--The 
Secretary of Defense may transfer funds to military personnel 
appropriations for a fiscal year out of funds available to the 
Department of Defense for that fiscal year under the 
appropriation `Foreign Currency Fluctuations, Defense'.''.
    (b) Revision and Codification of Authority for Transfers to 
Foreign Currency Fluctuations Account.--Section 2779 of such 
title, as amended by subsection (a), is further amended by 
adding at the end the following:
    ``(d) Transfers to Foreign Currency Fluctuations Account.--
(1) The Secretary of Defense may transfer to the appropriation 
`Foreign Currency Fluctuations, Defense' unobligated amounts of 
funds appropriated for operation and maintenance and 
unobligated amounts of funds appropriated for military 
personnel.
    ``(2) Any transfer from an appropriation under paragraph 
(1) shall be made not later than the end of the second fiscal 
year following the fiscal year for which the appropriation is 
provided.
    ``(3) Any transfer made pursuant to the authority provided 
in this subsection shall be limited so that the amount in the 
appropriation `Foreign Currency Fluctuations, Defense' does not 
exceed $970,000,000 at the time the transfer is made.''.
    (c) Conditions of Availability for Transferred Funds.--
Section 2779 of such title, as amended by subsection (b), is 
further amended by adding at the end the following:
    ``(e) Conditions of Availability for Transferred Funds.--
Amounts transferred under subsection (c) or (d) shall be merged 
with and be available for the same purposes and for the same 
period as the appropriations to which transferred.''.
    (d) Repeal of Superseded Provisions.--(1) Section 767A of 
Public Law 96-527 (94 Stat. 3093) is repealed.
    (2) Section 791 of the Department of Defense Appropriation 
Act, 1983 (enacted in section 101(c) of Public Law 97-377; 96 
Stat. 1865) is repealed.
    (e) Technical Amendments.--Section 2779 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking out ``(a)(1)'' 
        and inserting in lieu thereof ``(a) Transfers Back to 
        Foreign Currency Fluctuations Appropriation.--(1)'';
            (2) in subsection (a)(2), by striking out ``2d 
        fiscal year'' and inserting in lieu thereof ``second 
        fiscal year''; and
            (3) in subsection (b), by striking out ``(b)(1)'' 
        and inserting in lieu thereof ``(b) Funding for Losses 
        in Military Construction and Family Housing.--(1)''.
    (f) Effective Date.--Subsections (c) and (d) of section 
2779 of title 10, United States Code, as added by subsections 
(a) and (b), and the repeals made by subsection (d), shall 
apply only with respect to amounts appropriated for a fiscal 
year after fiscal year 1995.

SEC. 912. DEFENSE MODERNIZATION ACCOUNT.

    (a) Establishment and Use.--(1) Chapter 131 of title 10, 
United States Code, is amended by inserting after section 2215 
the following new section:

``Sec. 2216. Defense Modernization Account

    ``(a) Establishment.--There is established in the Treasury 
an account to be known as the `Defense Modernization Account'.
    ``(b) Transfers to Account.--(1)(A) Upon a determination by 
the Secretary of a military department or the Secretary of 
Defense with respect to Defense-wide appropriations accounts of 
the availability and source of funds described in subparagraph 
(B), that Secretary may transfer to the Defense Modernization 
Account during any fiscal year any amount of funds available to 
the Secretary described in that subparagraph. Such funds may be 
transferred to that account only after the Secretary concerned 
notifies the congressional defense committees in writing of the 
amount and source of the proposed transfer.
    ``(B) This subsection applies to the following funds 
available to the Secretary concerned:
            ``(i) Unexpired funds in appropriations accounts 
        that are available for procurement and that, as a 
        result of economies, efficiencies, and other savings 
        achieved in carrying out a particular procurement, are 
        excess to the requirements of that procurement.
            ``(ii) Unexpired funds that are available during 
        the final 30 days of a fiscal year for support of 
        installations and facilities and that, as a result of 
        economies, efficiencies, and other savings, are excess 
        to the requirements for support of installations and 
        facilities.
    ``(C) Any transfer under subparagraph (A) shall be made 
under regulations prescribed by the Secretary of Defense.
    ``(2) Funds referred to in paragraph (1) may not be 
transferred to the Defense Modernization Account if--
            ``(A) the funds are necessary for programs, 
        projects, and activities that, as determined by the 
        Secretary, have a higher priority than the purposes for 
        which the funds would be available if transferred to 
        that account; or
            ``(B) the balance of funds in the account, after 
        transfer of funds to the account, would exceed 
        $1,000,000,000.
    ``(3) Amounts credited to the Defense Modernization Account 
shall remain available for transfer until the end of the third 
fiscal year that follows the fiscal year in which the amounts 
are credited to the account.
    ``(4) The period of availability of funds for expenditure 
provided for in sections 1551 and 1552 of title 31 may not be 
extended by transfer into the Defense Modernization Account.
    ``(c) Scope of Use of Funds.--Funds transferred to the 
Defense Modernization Account from funds appropriated for a 
military department, Defense Agency, or other element of the 
Department of Defense shall be available in accordance with 
subsections (f) and (g) only for transfer to funds available 
for that military department, Defense Agency, or other element.
    ``(d) Authorized Use of Funds.--Funds available from the 
Defense Modernization Account pursuant to subsection (f) or (g) 
may be used for the following purposes:
            ``(1) For increasing, subject to subsection (e), 
        the quantity of items and services procured under a 
        procurement program in order to achieve a more 
        efficient production or delivery rate.
            ``(2) For research, development, test, and 
        evaluation and for procurement necessary for 
        modernization of an existing system or of a system 
        being procured under an ongoing procurement program.
    ``(e) Limitations.--(1) Funds in the Defense Modernization 
Account may not be used to increase the quantity of an item or 
services procured under a particular procurement program to the 
extent that doing so would--
            ``(A) result in procurement of a total quantity of 
        items or services in excess of--
                    ``(i) a specific limitation provided by law 
                on the quantity of the items or services that 
                may be procured; or
                    ``(ii) the requirement for the items or 
                services as approved by the Joint Requirements 
                Oversight Council and reported to Congress by 
                the Secretary of Defense; or
            ``(B) result in an obligation or expenditure of 
        funds in excess of a specific limitation provided by 
        law on the amount that may be obligated or expended, 
        respectively, for that procurement program.
    ``(2) Funds in the Defense Modernization Account may not be 
used for a purpose or program for which Congress has not 
authorized appropriations.
    ``(3) Funds may not be transferred from the Defense 
Modernization Account in any year for the purpose of--
            ``(A) making an expenditure for which there is no 
        corresponding obligation; or
            ``(B) making an expenditure that would satisfy an 
        unliquidated or unrecorded obligation arising in a 
        prior fiscal year.
    ``(f) Transfer of Funds.--(1) The Secretary of Defense may 
transfer funds in the Defense Modernization Account to 
appropriations available for purposes set forth in subsection 
(d).
    ``(2) Funds in the Defense Modernization Account may not be 
transferred under paragraph (1) until 30 days after the date on 
which the Secretary concerned notifies the congressional 
defense committees in writing of the amount and purpose of the 
proposed transfer.
    ``(3) The total amount of transfers from the Defense 
Modernization Account during any fiscal year under this 
subsection may not exceed $500,000,000.
    ``(g) Availability of Funds by Appropriation.--In addition 
to transfers under subsection (f), funds in the Defense 
Modernization Account may be made available for purposes set 
forth in subsection (d) in accordance with the provisions of 
appropriations Acts, but only to the extent authorized in an 
Act other than an appropriations Act.
    ``(h) Secretary To Act Through Comptroller.--The Secretary 
of Defense shall carry out this section through the Under 
Secretary of Defense (Comptroller), who shall be authorized to 
implement this section through the issuance of any necessary 
regulations, policies, and procedures after consultation with 
the General Counsel and Inspector General of the Department of 
Defense.
    ``(i) Quarterly Reports.--(1) Not later than 15 days after 
the end of each calendar quarter, the Secretary of Defense 
shall submit to the congressional committees specified in 
paragraph (2) a report on the Defense Modernization Account. 
Each such report shall set forth the following:
            ``(A) The amount and source of each credit to the 
        account during that quarter.
            ``(B) The amount and purpose of each transfer from 
        the account during that quarter.
            ``(C) The balance in the account at the end of the 
        quarter and, of such balance, the amount attributable 
        to transfers to the account from each Secretary 
        concerned.
    ``(2) The committees referred to in paragraph (1) are the 
congressional defense committees and the Committee on 
Governmental Affairs of the Senate and the Committee on 
Government Reform and Oversight of the House of 
Representatives.
    ``(j) Definitions.--In this section:
            ``(1) The term `Secretary concerned' includes the 
        Secretary of Defense with respect to Defense-wide 
        appropriations accounts.
            ``(2) The term `unexpired funds' means funds 
        appropriated for a definite period that remain 
        available for obligation.
            ``(3) The term `congressional defense committees' 
        means--
                    ``(A) the Committee on Armed Services and 
                the Committee on Appropriations of the Senate; 
                and
                    ``(B) the Committee on National Security 
                and the Committee on Appropriations of the 
                House of Representatives.''.
    (2) The table of sections at the beginning of chapter 131 
of such title is amended by inserting after the item relating 
to section 2215 the following new item:

``2216. Defense Modernization Account.''.

    (b) Effective Date.--Section 2216 of title 10, United 
States Code (as added by subsection (a)), shall apply only to 
funds appropriated for fiscal years after fiscal year 1995.
    (c) Expiration of Authority and Account.--(1) The authority 
under section 2216(b) of title 10, United States Code (as added 
by subsection (a)), to transfer funds into the Defense 
Modernization Account terminates at the close of September 30, 
2003.
    (2) Three years after the termination date specified in 
paragraph (1), the Defense Modernization Account shall be 
closed and any remaining balance in the account shall be 
canceled and thereafter shall not be available for any purpose.
    (d) GAO Reviews.--(1) The Comptroller General of the United 
States shall conduct two reviews of the administration of the 
Defense Modernization Account. In each review, the Comptroller 
General shall assess the operations and benefits of the 
account.
    (2) Not later than March 1, 2000, the Comptroller General 
shall--
            (A) complete the first review; and
            (B) submit to the specified committees of Congress 
        an initial report on the administration and benefits of 
        the Defense Modernization Account.
    (3) Not later than March 1, 2003, the Comptroller General 
shall--
            (A) complete the second review; and
            (B) submit to the specified committees of Congress 
        a final report on the administration and benefits of 
        the Defense Modernization Account.
    (4) Each such report shall include any recommended 
legislation regarding the account that the Comptroller General 
considers appropriate.
    (5) For purposes of this subsection, the term ``specified 
committees of Congress'' means the congressional committees 
referred to in section 2216(i)(2) of title 10, United States 
Code, as added by subsection (a).

SEC. 913. DESIGNATION AND LIABILITY OF DISBURSING AND CERTIFYING 
                    OFFICIALS.

    (a) Disbursing Officials.--(1) Section 3321(c) of title 31, 
United States Code, is amended by striking out paragraph (2) 
and inserting in lieu thereof the following:
            ``(2) The Department of Defense.''.
    (2) Section 2773 of title 10, United States Code, is 
amended--
            (A) in subsection (a)--
                    (i) in paragraph (1), by striking out 
                ``With the approval of a Secretary of a 
                military department when the Secretary 
                considers it necessary, a disbursing official 
                of the military department'' and inserting in 
                lieu thereof ``Subject to paragraph (3), a 
                disbursing official of the Department of 
                Defense''; and
                    (ii) by adding at the end the following new 
                paragraph:
    ``(3) A disbursing official may make a designation under 
paragraph (1) only with the approval of the Secretary of 
Defense or, in the case of a disbursing official of a military 
department, the Secretary of that military department.''; and
            (B) in subsection (b)(1), by striking out ``any 
        military department'' and inserting in lieu thereof 
        ``the Department of Defense''.
    (b) Designation of Members of the Armed Forces To Have 
Authority To Certify Vouchers.--Section 3325(b) of title 31, 
United States Code, is amended to read as follows:
    ``(b) In addition to officers and employees referred to in 
subsection (a)(1)(B) of this section as having authorization to 
certify vouchers, members of the armed forces under the 
jurisdiction of the Secretary of Defense may certify vouchers 
when authorized, in writing, by the Secretary to do so.''.
    (c) Conforming Amendments.--(1) Section 1012 of title 37, 
United States Code, is amended by striking out ``Secretary 
concerned'' both places it appears and inserting in lieu 
thereof ``Secretary of Defense''.
    (2) Section 1007(a) of title 37, United States Code, is 
amended by striking out ``Secretary concerned'' and inserting 
in lieu thereof ``Secretary of Defense, or upon the denial of 
relief of an officer pursuant to section 3527 of title 31''.
    (3)(A) Section 7863 of title 10, United States Code, is 
amended--
            (i) in the first sentence, by striking out 
        ``disbursements of public moneys or'' and ``the money 
        was paid or''; and
            (ii) in the second sentence, by striking out 
        ``disbursement or''.
    (B)(i) The heading of such section is amended to read as 
follows:

``Sec. 7863. Disposal of public stores by order of commanding 
                    officer''.

    (ii) The item relating to such section in the table of 
sections at the beginning of chapter 661 of such title is 
amended to read as follows:

``7863. Disposal of public stores by order of commanding officer.''.

    (4) Section 3527(b)(1) of title 31, United States Code, is 
amended--
            (A) by striking out ``a disbursing official of the 
        armed forces'' and inserting in lieu thereof ``an 
        official of the armed forces referred to in subsection 
        (a)'';
            (B) by striking out ``records,'' and inserting in 
        lieu thereof ``records, or a payment described in 
        section 3528(a)(4)(A) of this title,'';
            (C) by redesignating subparagraphs (A), (B), and 
        (C) as clauses (i), (ii), and (iii), and realigning 
        such clauses four ems from the left margin;
            (D) by inserting before clause (i), as so 
        redesignated, the following:
            ``(A) in the case of a physical loss or 
        deficiency--'';
            (E) in clause (iii), as so redesignated, by 
        striking out the period at the end and inserting in 
        lieu thereof ``; or''; and
            (F) by adding at the end the following:
            ``(B) in the case of a payment described in section 
        3528(a)(4)(A) of this title, the Secretary of Defense 
        or the Secretary of the appropriate military 
        department, after taking a diligent collection action, 
        finds that the criteria of section 3528(b)(1) of this 
        title are satisfied.''.
    (5) Section 3528 of title 31, United States Code, is 
amended by striking out subsection (d).

SEC. 914. FISHER HOUSE TRUST FUNDS.

    (a) Establishment.--(1) Chapter 131 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 2221. Fisher House trust funds

    ``(a) Establishment.--The following trust funds are 
established on the books of the Treasury:
            ``(1) The Fisher House Trust Fund, Department of 
        the Army.
            ``(2) The Fisher House Trust Fund, Department of 
        the Air Force.
    ``(b) Investment.--Funds in the trust funds may be invested 
in securities of the United States. Earnings and gains realized 
from the investment of funds in a trust fund shall be credited 
to the trust fund.
    ``(c) Use of Funds.--(1) Amounts in the Fisher House Trust 
Fund, Department of the Army, that are attributable to earnings 
or gains realized from investments shall be available for the 
operation and maintenance of Fisher houses that are located in 
proximity to medical treatment facilities of the Army.
    ``(2) Amounts in the Fisher House Trust Fund, Department of 
the Air Force, that are attributable to earnings or gains 
realized from investments shall be available for the operation 
and maintenance of Fisher houses that are located in proximity 
to medical treatment facilities of the Air Force.
    ``(3) The use of funds under this section is subject to 
section 1321(b)(2) of title 31.
    ``(d) Fisher House Defined.--In this section, the term 
`Fisher House' means a housing facility that--
            ``(1) is located in proximity to a medical 
        treatment facility of the Army or the Air Force; and
            ``(2) is available for residential use on a 
        temporary basis by patients at such facilities, members 
        of the family of such patients, and others providing 
        the equivalent of familial support for such 
        patients.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``2221. Fisher House trust funds.''.

    (b) Corpus of Trust Funds.--(1) The Secretary of the 
Treasury shall--
            (A) close the accounts established with the funds 
        that were required by section 8019 of Public Law 102-
        172 (105 Stat. 1175) and section 9023 of Public Law 
        102-396 (106 Stat. 1905) to be transferred to an 
        appropriated trust fund; and
            (B) transfer the amounts in such accounts to the 
        Fisher House Trust Fund, Department of the Army, 
        established by subsection (a)(1) of section 2221 of 
        title 10, United States Code, as added by subsection 
        (a).
    (2) The Secretary of the Air Force shall transfer to the 
Fisher House Trust Fund, Department of the Air Force, 
established by subsection (a)(2) of section 2221 of title 10, 
United States Code (as added by section (a)), all amounts in 
the accounts for Air Force installations and other facilities 
that, as of the date of the enactment of this Act, are 
available for operation and maintenance of Fisher houses (as 
defined in subsection (d) of such section 2221).
    (c) Conforming Amendments.--Section 1321 of title 31, 
United States Code, is amended--
            (1) by adding at the end of subsection (a) the 
        following:
            ``(92) Fisher House Trust Fund, Department of the 
        Army.
            ``(93) Fisher House Trust Fund, Department of the 
        Air Force.''; and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) in the second sentence, by striking out 
                ``Amounts accruing to these funds (except to 
                the trust fund `Armed Forces Retirement Home 
                Trust Fund')'' and inserting in lieu thereof 
                ``Except as provided in paragraph (2), amounts 
                accruing to these funds'';
                    (C) by striking out the third sentence; and
                    (D) by adding at the end the following:
    ``(2) Expenditures from the following trust funds may be 
made only under annual appropriations and only if the 
appropriations are specifically authorized by law:
            ``(A) Armed Forces Retirement Home Trust Fund.
            ``(B) Fisher House Trust Fund, Department of the 
        Army.
            ``(C) Fisher House Trust Fund, Department of the 
        Air Force.''.
    (d) Repeal of Superseded Provisions.--The following 
provisions of law are repealed:
            (1) Section 8019 of Public Law 102-172 (105 Stat. 
        1175).
            (2) Section 9023 of Public Law 102-396 (106 Stat. 
        1905).
            (3) Section 8019 of Public Law 103-139 (107 Stat. 
        1441).
            (4) Section 8017 of Public Law 103-335 (108 Stat. 
        2620; 10 U.S.C. 1074 note).

SEC. 915. LIMITATION ON USE OF AUTHORITY TO PAY FOR EMERGENCY AND 
                    EXTRAORDINARY EXPENSES.

    Section 127 of title 10, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection 
        (d); and
            (2) by inserting after subsection (b) the following 
        new subsection (c):
    ``(c)(1) Funds may not be obligated or expended in an 
amount in excess of $500,000 under the authority of subsection 
(a) or (b) until the Secretary of Defense has notified the 
Committee on Armed Services and the Committee on Appropriations 
of the Senate and the Committee on National Security and the 
Committee on Appropriations of the House of Representatives of 
the intent to obligate or expend the funds, and--
            ``(A) in the case of an obligation or expenditure 
        in excess of $1,000,000, 15 days have elapsed since the 
        date of the notification; or
            ``(B) in the case of an obligation or expenditure 
        in excess of $500,000, but not in excess of $1,000,000, 
        5 days have elapsed since the date of the notification.
    ``(2) Subparagraph (A) or (B) of paragraph (1) shall not 
apply to an obligation or expenditure of funds otherwise 
covered by such subparagraph if the Secretary of Defense 
determines that the national security objectives of the United 
States will be compromised by the application of the 
subparagraph to the obligation or expenditure. If the Secretary 
makes a determination with respect to an obligation or 
expenditure under the preceding sentence, the Secretary shall 
immediately notify the committees referred to in paragraph (1) 
that such obligation or expenditure is necessary and provide 
any relevant information (in classified form, if necessary) 
jointly to the chairman and ranking minority member (or their 
designees) of such committees.
    ``(3) A notification under paragraph (1) and information 
referred to in paragraph (2) shall include the amount to be 
obligated or expended, as the case may be, and the purpose of 
the obligation or expenditure.''.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon 
determination by the Secretary of Defense that such action is 
necessary in the national interest, the Secretary may transfer 
amounts of authorizations made available to the Department of 
Defense in this division for fiscal year 1996 between any such 
authorizations for that fiscal year (or any subdivisions 
thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary 
of Defense may transfer under the authority of this section may 
not exceed $2,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly 
notify Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex 
prepared by the committee on conference to accompany the bill 
H.R. 1530 of the One Hundred Fourth Congress and transmitted to 
the President is hereby incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to 
amounts authorized to be appropriated by other provisions of 
this Act.
    (c) Limitation on Use of Funds.--Funds appropriated 
pursuant to an authorization contained in this Act that are 
made available for a program, project, or activity referred to 
in the Classified Annex may only be expended for such program, 
project, or activity in accordance with such terms, conditions, 
limitations, restrictions, and requirements as are set out for 
that program, project, or activity in the Classified Annex.
    (d) Distribution of Classified Annex.--The President shall 
provide for appropriate distribution of the Classified Annex, 
or of appropriate portions of the annex, within the executive 
branch of the Government.

SEC. 1003. IMPROVED FUNDING MECHANISMS FOR UNBUDGETED OPERATIONS.

    (a) Revision of Funding Mechanism.--(1) Section 127a of 
title 10, United States Code, is amended to read as follows:

``Sec. 127a. Operations for which funds are not provided in advance: 
                    funding mechanisms

    ``(a) In General.--(1) The Secretary of Defense shall use 
the procedures prescribed by this section with respect to any 
operation specified in paragraph (2) that involves--
            ``(A) the deployment (other than for a training 
        exercise) of elements of the Armed Forces for a purpose 
        other than a purpose for which funds have been 
        specifically provided in advance; or
            ``(B) the provision of humanitarian assistance, 
        disaster relief, or support for law enforcement 
        (including immigration control) for which funds have 
        not been specifically provided in advance.
    ``(2) This section applies to--
            ``(A) any operation the incremental cost of which 
        is expected to exceed $50,000,000; and
            ``(B) any other operation the expected incremental 
        cost of which, when added to the expected incremental 
        costs of other operations that are currently ongoing, 
        is expected to result in a cumulative incremental cost 
        of ongoing operations of the Department of Defense in 
        excess of $100,000,000.
Any operation the incremental cost of which is expected not to 
exceed $10,000,000 shall be disregarded for the purposes of 
subparagraph (B).
    ``(3) Whenever an operation to which this section applies 
is commenced or subsequently becomes covered by this section, 
the Secretary of Defense shall designate and identify that 
operation for the purposes of this section and shall promptly 
notify Congress of that designation (and of the identification 
of the operation).
    ``(4) This section does not provide authority for the 
President or the Secretary of Defense to carry out any 
operation, but establishes mechanisms for the Department of 
Defense by which funds are provided for operations that the 
armed forces are required to carry out under some other 
authority.
    ``(b) Waiver of Requirement To Reimburse Support Units.--
(1) The Secretary of Defense shall direct that, when a unit of 
the Armed Forces participating in an operation described in 
subsection (a) receives services from an element of the 
Department of Defense that operates through the Defense 
Business Operations Fund (or a successor fund), such unit of 
the Armed Forces may not be required to reimburse that element 
for the incremental costs incurred by that element in providing 
such services, notwithstanding any other provision of law or 
any Government accounting practice.
    ``(2) The amounts which but for paragraph (1) would be 
required to be reimbursed to an element of the Department of 
Defense (or a fund) shall be recorded as an expense 
attributable to the operation and shall be accounted for 
separately.
    ``(c) Transfer Authority.--(1) Whenever there is an 
operation of the Department of Defense described in subsection 
(a), the Secretary of Defense may transfer amounts describedin 
paragraph (3) to accounts from which incremental expenses for that 
operation were incurred in order to reimburse those accounts for those 
incremental expenses. Amounts so transferred shall be merged with and 
be available for the same purposes as the accounts to which 
transferred.
    ``(2) The total amount that the Secretary of Defense may 
transfer under the authority of this section in any fiscal year 
is $200,000,000.
    ``(3) Transfers under this subsection may only be made from 
amounts appropriated to the Department of Defense for any 
fiscal year that remain available for obligation, other than 
amounts within any operation and maintenance appropriation that 
are available for (A) an account (known as a budget activity 1 
account) that is specified as being for operating forces, or 
(B) an account (known as a budget activity 2 account) that is 
specified as being for mobilization.
    ``(4) The authority provided by this subsection is in 
addition to any other authority provided by law authorizing the 
transfer of amounts available to the Department of Defense. 
However, the Secretary may not use any such authority under 
another provision of law for a purpose described in paragraph 
(1) if there is authority available under this subsection for 
that purpose.
    ``(5) The authority provided by this subsection to transfer 
amounts may not be used to provide authority for an activity 
that has been denied authorization by Congress.
    ``(6) A transfer made from one account to another under the 
authority of this subsection shall be deemed to increase the 
amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    ``(d) Report Upon Designation of an Operation.--Within 45 
days after the Secretary of Defense identifies an operation 
pursuant to subsection (a)(2), the Secretary of Defense shall 
submit to Congress a report that sets forth the following:
            ``(1) The manner by which the Secretary proposes to 
        obtain funds for the cost to the United States of the 
        operation, including a specific discussion of how the 
        Secretary proposes to restore balances in--
                    ``(A) the Defense Business Operations Fund 
                (or a successor fund), or
                    ``(B) the accounts from which the Secretary 
                transfers funds under the authority of 
                subsection (c), to the levels that would have 
                been anticipated but for the provisions of 
                subsection (c).
            ``(2) If the operation is described in subsection 
        (a)(1)(B), a justification why the budgetary resources 
        of another department or agency of the Federal 
        Government, instead of resources of the Department of 
        Defense, are not being used for carrying out the 
        operation.
            ``(3) The objectives of the operation.
            ``(4) The estimated duration of the operation and 
        of any deployment of armed forces personnel in such 
        operation.
            ``(5) The estimated incremental cost of the 
        operation to the United States.
            ``(6) The exit criteria for the operation and for 
        the withdrawal of the elements of the armed forces 
        involved in the operation.
    ``(e) Limitations.--(1) The Secretary may not restore 
balances in the Defense Business Operations Fund through 
increases in rates charged by that fund in order to compensate 
for costs incurred and not reimbursed due to subsection (b).
    ``(2) The Secretary may not restore balances in the Defense 
Business Operations Fund or any other fund or account through 
the use of unobligated amounts in an operation and maintenance 
appropriation that are available within that appropriation for 
(A) an account (known as a budget activity 1 account) that is 
specified as being for operating forces, or (B) an account 
(known as a budget activity 2 account) that is specified as 
being for mobilization.
      ``(f) Submission of Requests for Supplemental 
Appropriations.--It is the sense of Congress that whenever 
there is an operation described in subsection (a), the 
President should, not later than 90 days after the date on 
which notification is provided pursuant to subsection (a)(3), 
submit to Congress a request for the enactment of supplemental 
appropriations for the then-current fiscal year in order to 
provide funds to replenish the Defense Business Operations Fund 
or any other fund or account of the Department of Defense from 
which funds for the incremental expenses of that operation were 
derived under this section and should, as necessary, submit 
subsequent requests for the enactment of such appropriations.
    ``(g) Incremental Costs.--For purposes of this section, 
incremental costs of the Department of Defense with respect to 
an operation are the costs of the Department that are directly 
attributable to the operation (and would not have been incurred 
but for the operation). Incremental costs do not include the 
cost of property or services acquired by the Department that 
are paid for by a source outside the Department or out of funds 
contributed by such a source.
    ``(h) Relationship to War Powers Resolution.--This section 
may not be construed as altering or superseding the War Powers 
Resolution. This section does not provide authority to conduct 
any military operation.
    ``(i) GAO Compliance Reviews.--The Comptroller General of 
the United States shall from time to time, and when requested 
by a committee of Congress, conduct a review of the defense 
funding structure under this section to determine whether the 
Department of Defense is complying with the requirements and 
limitations of this section.''.
    (2) The item relating to section 127a in the table of 
sections at the beginning of chapter 3 of such title is amended 
to read as follows:

``127a. Operations for which funds are not provided in advance: funding 
          mechanisms.''.

    (b) Effective Date.--The amendment to section 127a of title 
10, United States Code, made by subsection (a) shall take 
effect on the date of the enactment of this Act and shall apply 
to any operation of the Department of Defense that is in effect 
on or after that date, whether such operation is begun before, 
on, or after such date of enactment. In the case of an 
operation begun before such date, any reference in such section 
to the commencement of such operation shall be treated as 
referring to the effective date under the preceding sentence.

SEC. 1004. OPERATION PROVIDE COMFORT.

    (a) Authorization of Amounts Available.--Within the total 
amounts authorized to be appropriated in titles III and IV, 
there is hereby authorized to be appropriated for fiscal year 
1996 for costs associated with Operation Provide Comfort--
            (1) $136,300,000 for operation and maintenance 
        costs; and
            (2) $7,000,000 for incremental military personnel 
        costs.
    (b) Report.--Not more than $70,000,000 of the amount 
appropriated under subsection (a) may be obligated until the 
Secretary of Defense submits to the congressional defense 
committees a report on Operation Provide Comfort which includes 
the following:
            (1) A detailed presentation of the projected costs 
        to be incurred by the Department of Defense for 
        Operation Provide Comfort during fiscal year 1996, 
        together with a discussion of missions and functions 
        expected to be performed by the Department as part of 
        that operation during that fiscal year.
            (2) A detailed presentation of the projected costs 
        to be incurred by other departments and agencies of the 
        Federal Government participating in or providing 
        support to Operation Provide Comfort during fiscal year 
        1996.
            (3) A discussion of available options to reduce the 
        involvement of the Department of Defense in those 
        aspects of Operation Provide Comfort that are not 
        directly related to the military mission of the 
        Department of Defense.
            (4) A plan establishing an exit strategy for United 
        States involvement in, and support for, Operation 
        Provide Comfort.
    (c) Operation Provide Comfort.--For purposes of this 
section, the term ``Operation Provide Comfort'' means the 
operation of the Department of Defense that as of October 30, 
1995, is designated as Operation Provide Comfort.

SEC. 1005. OPERATION ENHANCED SOUTHERN WATCH.

    (a) Authorization of Amounts Available.--Within the total 
amounts authorized to be appropriated in titles III and IV, 
there is hereby authorized to be appropriated for fiscal year 
1996 for costs associated with Operation Enhanced Southern 
Watch--
            (1) $433,400,000 for operation and maintenance 
        costs; and
            (2) $70,400,000 for incremental military personnel 
        costs.
    (b) Report.--(1) Of the amounts specified in subsection 
(a), not more than $250,000,000 may be obligated until the 
Secretary of Defense submits to the congressional defense 
committees a report designating Operation Enhanced Southern 
Watch, or significant elements thereof, as a forward presence 
operation for which funding should be budgeted as part of the 
annual defense budget process in the same manner as other 
activities of the Armed Forces involving forward presence or 
forward deployed forces.
    (2) The report shall set forth the following:
            (A) The expected duration and annual costs of the 
        various elements of Operation Enhanced Southern Watch.
            (B) Those elements of Operation Enhanced Southern 
        Watch that are semi-permanent in nature and should be 
        budgeted in the future as part of the annual defense 
        budget process in the same manner as other activities 
        of the Armed Forces involving forward presence or 
        forward deployed forces.
            (C) The political and military objectives 
        associated with Operation Enhanced Southern Watch.
            (D) The contributions (both in-kind and actual) by 
        other nations to the costs of conducting Operation 
        Enhanced Southern Watch.
    (c) Operation Enhanced Southern Watch.--For purposes of 
this section, the term ``Operation Enhanced Southern Watch'' 
means the operation of the Department of Defense that as of 
October 30, 1995, is designated as Operation Enhanced Southern 
Watch.

SEC. 1006. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL YEAR 
                    1995 DEFENSE APPROPRIATIONS.

    (a) Authority.--The amounts described in subsection (b) may 
be obligated and expended for programs, projects, and 
activities of the Department of Defense in accordance with 
fiscal year 1995 defense appropriations.
    (b) Covered Amounts.--The amounts referred to in subsection 
(a) are the amounts provided for programs, projects, and 
activities of the Department of Defense in fiscal year 1995 
defense appropriations that are in excess of the amounts 
provided for such programs, projects, and activities in fiscal 
year 1995 defense authorizations.
    (c) Definitions.--For the purposes of this section:
            (1) Fiscal year 1995 defense appropriations.--The 
        term ``fiscal year 1995 defense appropriations'' means 
        amounts appropriated or otherwise made available to the 
        Department of Defense for fiscal year 1995 in the 
        Department of Defense Appropriations Act, 1995 (Public 
        Law 103-335).
            (2) Fiscal year 1995 defense authorizations.--The 
        term ``fiscal year 1995 defense authorizations'' means 
        amounts authorized to be appropriated for the 
        Department of Defense for fiscal year 1995 in the 
        National Defense Authorization Act for Fiscal Year 1995 
        (Public Law 103-337).

SEC. 1007. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
                    FOR FISCAL YEAR 1995.

    (a) Adjustment to Previous Authorizations.--Amounts 
authorized to be appropriated to the Department of Defense for 
fiscal year 1995 in the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337) are hereby adjusted, with 
respect to any such authorized amount, by the amount by which 
appropriations pursuant to such authorization were increased 
(by a supplemental appropriation) or decreased (by a 
rescission), or both, in title I of the Emergency Supplemental 
Appropriations and Rescissions for the Department of Defense to 
Preserve and Enhance Military Readiness Act of 1995 (Public Law 
104-6; 109 Stat. 73).
    (b) New Authorization.--The appropriation provided in 
section 104 of such Act (109 Stat. 79) is hereby authorized.

SEC. 1008. AUTHORIZATION REDUCTIONS TO REFLECT SAVINGS FROM REVISED 
                    ECONOMIC ASSUMPTIONS.

    (a) Reduction.--The total amount authorized to be 
appropriated in titles I, II, and III of this Act is hereby 
reduced by $832,000,000 to reflect savings from revised 
economic assumptions. Such reduction shall be made from 
accounts in those titles 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.
            Research, Development, Test and Evaluation, 
        Defense, $2,000,000.
    (b) Reductions To Be Applied Proportionally.--Reductions 
under this section shall be applied proportionally to each 
budget activity, activity group, and subactivity group and to 
each program, project, and activity within each account.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. IOWA CLASS BATTLESHIPS.

    (a) Return to Naval Vessel Register.--The Secretary of the 
Navy shall list on the Naval Vessel Register, and maintain on 
such register, at least two of the Iowa-class battleships that 
were stricken from the register in February 1995.
    (b) Support.--The Secretary shall retain the existing 
logistical support necessary for support of at least two 
operational Iowa class battleships in active service, including 
technical manuals, repair and replacement parts, and ordnance.
    (c) Selection of Ships.--The Secretary shall select for 
listing on the Naval Vessel Register under subsection (a) Iowa 
class battleships that are in good material condition and can 
provide adequate fire support for an amphibious assault.
    (d) Replacement Fire-Support Capability.--(1) If the 
Secretary of the Navy makes a certification described in 
paragraph (2), the requirements of subsections (a) and (b) 
shall terminate, effective 60 days after the date of the 
submission of such certification.
    (2) A certification referred to in paragraph (1) is a 
certification submitted by the Secretary of the Navy in writing 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
that the Navy has within the fleet an operational surface fire-
support capability that equals or exceeds the fire-support 
capability that the Iowa class battleships listed on the Naval 
Vessel Register pursuant to subsection (a) would, if in active 
service, be ableto provide for Marine Corps amphibious assaults 
and operations ashore.

SEC. 1012. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

    (a) Transfers by Grant.--The Secretary of the Navy is 
authorized to transfer on a grant basis under section 516 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) frigates 
of the Oliver Hazard Perry class to other countries as follows:
            (1) To the Government of Bahrain, the guided 
        missile frigate Jack Williams (FFG 24).
            (2) To the Government of Egypt, the frigate 
        Copeland (FFG 25).
            (3) To the Government of Turkey, the frigates 
        Clifton Sprague (FFG 16) and Antrim (FFG 20).
    (b) Transfers by Lease or Sale.--The Secretary of the Navy 
is authorized to transfer on a lease basis under section 61 of 
the Arms Export Control Act (22 U.S.C. 2796) or on a sale basis 
under section 21 of the Arms Export Control Act (22 U.S.C. 
2761) frigates of the Oliver Hazard Perry class to other 
countries as follows:
            (1) To the Government of Egypt, the frigate Duncan 
        (FFG 10).
            (2) To the Government of Oman, the guided missile 
        frigate Mahlon S. Tisdale (FFG 27).
            (3) To the Government of Turkey, the frigate 
        Flatley (FFG 21).
            (4) To the Government of the United Arab Emirates, 
        the guided missile frigate Gallery (FFG 26).
    (c) Financing for Transfers by Lease.--Section 23 of the 
Arms Export Control Act (22 U.S.C. 2763) may be used to provide 
financing for any transfer by lease under subsection (b) in the 
same manner as if such transfer were a procurement by the 
recipient nation of a defense article.
    (d) Costs of Transfers.--Any expense incurred by the United 
States in connection with a transfer authorized by subsection 
(a) or (b) shall be charged to the recipient.
    (e) Expiration of Authority.--The authority to transfer a 
vessel under subsection (a) and under subsection (b) shall 
expire at the end of the two-year period beginning on the date 
of the enactment of this Act, except that a lease entered into 
during that period under any provision of subsection (b) may be 
renewed.
    (f) Repair and Refurbishment in United States Shipyards.--
The Secretary of the Navy shall require, as a condition of the 
transfer of a vessel under this section, that the country to 
which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel 
joins the naval forces of that country, performed at a shipyard 
located in the United States, including a United States Navy 
shipyard.
    (g) Prohibition on Certain Transfers of Vessels on Grant 
Basis.--(1) Section 516 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2321j) is amended by adding at the end the following 
new subsection:
    ``(g) Prohibition on Certain Transfers of Vessels on Grant 
Basis.--(1) The President may not transfer on a grant basis 
under this section a vessel that is in excess of 3,000 tons or 
that is less than 20 years of age.
    ``(2) If the President determines that it is in the 
national security interests of the United States to transfer a 
particular vessel on a grant basis under this section, the 
President may request that Congress enact legislation exempting 
the transfer from the prohibition in paragraph (1).''.
    (2) The amendment made by paragraph (1) shall apply with 
respect to the transfer of a vessel on or after the date of the 
enactment of this Act (other than a vessel the transfer of 
which is authorized by subsection (a) or by law before the date 
of the enactment of this Act).

SEC. 1013. CONTRACT OPTIONS FOR LMSR VESSELS.

    (a) Findings.--Congress makes the following findings:
            (1) A requirement for the Department of the Navy to 
        acquire 19 large, medium-speed, roll-on/roll-off (LMSR) 
        vessels was established by the Secretary of Defense in 
        the Mobility Requirements Study conducted after the 
        Persian Gulf War pursuant to section 909 of the 
        National Defense Authorization Act for Fiscal Year 1991 
        (Public Law 101-510; 104 Stat. 1623) and was 
        revalidated by the Secretary of Defense in the report 
        entitled ``Mobility Requirements Study Bottom-Up Review 
        Update'', submitted to Congress in April 1995.
            (2) The Strategic Sealift Program is a vital 
        element of the national military strategy calling for 
        the Nation to be able to fight and win two nearly 
        simultaneous major regional contingencies.
            (3) The Secretary of the Navy has entered into 
        contracts with shipyards covering acquisition of a 
        total of 17 such LMSR vessels, of which five are vessel 
        conversions and 12 are new construction vessels. Under 
        those contracts, the Secretary has placed orders for 
        the acquisition of 11 vessels and has options for the 
        acquisition of six more, all of which would be new 
        construction vessels. The options allow the Secretary 
        to place orders for one vessel to be constructed at 
        each of two shipyards for award before December 31, 
        1995, December 31, 1996, and December 31, 1997, 
        respectively.
            (4) Acquisition of an additional two such LMSR 
        vessels, for a total of 19 vessels (the requirement 
        described in paragraph (1)) would contribute to 
        preservation of the industrial base of United States 
        shipyards capable of building auxiliary and sealift 
        vessels.
    (b) Sense of Congress.--It is the sense of Congress that 
the Secretary of the Navy should plan for, and budget to 
provide for, the acquisition as soon as possible of a total of 
19 large, medium-speed, roll-on/roll-off (LMSR) vessels (the 
number determined to be required in the Mobility Requirements 
Study referred to in subsection (a)(1)), rather than only 17 
such vessels (the number of vessels under contract as of May 
1995).
    (c) Additional New Construction Contract Option.--The 
Secretary of the Navy should negotiate with each of the two 
shipyards holding new construction contracts referred to in 
subsection (a)(3) (Department of the Navy contracts numbered 
N00024-93-C-2203 and N00024-93-C-2205) for an option under each 
such contract for construction of one additional such LMSR 
vessel, with such option to be available to the Secretary for 
exercise during 1995, 1996, or 1997, subject to the 
availability of funds authorized and appropriated for such 
purpose. Nothing in this subsection shall be construed to 
preclude the Secretary of the Navy from competing the award of 
the two options between the two shipyards holding new 
construction contracts referred to in subsection (a)(3).
    (d) Report.--The Secretary of the Navy shall submit to the 
congressional defense committees, by March 31, 1996, a report 
stating the intentions of the Secretary regarding the 
acquisition of options for the construction of two additional 
LMSR vessels as described in subsection (c).

SEC. 1014. NATIONAL DEFENSE RESERVE FLEET.

    (a) Availability of National Defense Sealift Fund.--Section 
2218 of title 10, United States Code, is amended--
            (1) in subsection (c)(1)--
                    (A) by striking out ``only for--'' in the 
                matter preceding subparagraph (A) and inserting 
                in lieu thereof ``only for the following 
                purposes:'';
                    (B) by capitalizing the first letter of the 
                first word of subparagraphs (A), (B), (C), and 
                (D);
                    (C) by striking out the semicolon at the 
                end of subparagraphs (A) and (B) and inserting 
                in lieu thereof a period;
                    (D) by striking out ``; and'' at the end of 
                subparagraph (C) and inserting in lieu thereof 
                a period; and
                    (E) by adding at the end the following new 
                subparagraph:
            ``(E) Expenses for maintaining the National Defense 
        Reserve Fleet under section 11 of the Merchant Ship 
        Sales Act of 1946 (50 U.S.C. App. 1744), and for the 
        costs of acquisition of vessels for, and alteration and 
        conversion of vessels in (or to be placed in), the 
        fleet, but only for vessels built in United States 
        shipyards.''; and
            (2) in subsection (i), by inserting ``(other than 
        subsection (c)(1)(E))'' after ``Nothing in this 
        section''.
    (b) Clarification of Exemption of NDRF Vessels From 
Retrofit Requirement.--Section 11 of the Merchant Ship Sales 
Act of 1946 (50 U.S.C. App. 1744) is amended by adding at the 
end the following new subsection:
    ``(e) Vessels in the National Defense Reserve Fleet are 
exempt from the provisions of section 3703a of title 46, United 
States Code.''.
    (c) Authority To Use National Defense Sealift Fund To 
Convert Two Vessels.--Of the amount authorized to be 
appropriated in section 302 for fiscal year 1996 for the 
National Defense Sealift Fund under section 2218 of title 10, 
United States Code, not more than $20,000,000 shall be 
available for conversion work on the following two roll-on/
roll-off vessels, which were acquired by the Maritime 
Administration during fiscal year 1995:
            (1) M/V Cape Knox (ON-1036323).
            (2) M/V Cape Kennedy (ON-1036324).

SEC. 1015. NAVAL SALVAGE FACILITIES.

    Chapter 637 of title 10, United States Code, is amended to 
read as follows:

                   ``CHAPTER 637--SALVAGE FACILITIES

  ``Sec.
``7361. Authority to provide for necessary salvage facilities.
``7362. Acquisition and transfer of vessels and equipment.
``7363. Settlement of claims.
``7364. Disposition of receipts.

``Sec. 7361. Authority to provide for necessary salvage facilities

    ``(a) Authority.--The Secretary of the Navy may provide, by 
contract or otherwise, necessary salvage facilities for public 
and private vessels.
    ``(b) Coordination With Secretary of Transportation.--The 
Secretary shall submit to the Secretary of Transportation for 
comment each proposed contract for salvage facilities that 
affects the interests of the Department of Transportation.
    ``(c) Limitation.--The Secretary of the Navy may enter into 
a term contract under subsection (a) only if the Secretary 
determines that available commercial salvage facilities are 
inadequate to meet the requirements of national defense.
    ``(d) Public Notice.--The Secretary may not enter into a 
contract under subsection (a) until the Secretary has provided 
public notice of the intent to enter into such a contract.

``Sec. 7362. Acquisition and transfer of vessels and equipment

    ``(a) Authority.--The Secretary of the Navy may acquire or 
transfer for operation by private salvage companies such 
vessels and equipment as the Secretary considers necessary.
    ``(b) Agreement on Use.--Before any salvage vessel or 
salvage gear is transferred by the Secretary to a private 
party, the private party must agree in writing with the 
Secretary that the vessel or gear will be used to support 
organized offshore salvage facilities for a period of as many 
years as the Secretary considers appropriate.
    ``(c) Reference to Authority To Advance Funds for Immediate 
Salvage Operations.--For authority for the Secretary of the 
Navy to advance to private salvage companies such funds as the 
Secretary considers necessary to provide for the immediate 
financing of salvage operations, see section 2307(g)(2) of this 
title.

``Sec. 7363. Settlement of claims

    ``The Secretary of the Navy may settle any claim by the 
United States for salvage services rendered by the Department 
of the Navy and may receive payment of any such claim.

``Sec. 7364. Disposition of receipts

    ``Amounts received under this chapter shall be credited to 
appropriations for maintaining naval salvage facilities. 
However, any amount received under this chapter in any fiscal 
year in excess of naval salvage costs incurred by the Navy 
during that fiscal year shall be deposited into the general 
fund of the Treasury.''.

SEC. 1016. VESSELS SUBJECT TO REPAIR UNDER PHASED MAINTENANCE 
                    CONTRACTS.

    (a) In General.--The Secretary of the Navy shall ensure 
that any vessel that is covered by the contract referred to in 
subsection (b) remains covered by that contract, regardless of 
the operating command to which the vessel is subsequently 
assigned, unless the vessel is taken out of service for the 
Department of the Navy.
    (b) Covered Contract.--The contract referred to in 
subsection (a) is the contract entered into before the date of 
the enactment of this Act for the phased maintenance of AE 
class ships.

SEC. 1017. CLARIFICATION OF REQUIREMENTS RELATING TO REPAIRS OF 
                    VESSELS.

    Section 7310(a) of title 10, United States Code, is amended 
by inserting ``or Guam'' after ``the United States'' the second 
place it appears.

SEC. 1018. SENSE OF CONGRESS CONCERNING NAMING OF AMPHIBIOUS SHIPS.

    It is the sense of Congress that the Secretary of the 
Navy--
            (1) should name the vessel to be designated LHD-7 
        as the U.S.S. Iwo Jima; and
            (2) should name the vessel to be designated LPD-17, 
        and each subsequent ship of the LPD-17 class, after a 
        Marine Corps battle or a member of the Marine Corps.

SEC. 1019. SENSE OF CONGRESS CONCERNING NAMING OF NAVAL VESSEL.

    It is the sense of Congress that the Secretary of the Navy 
should name an appropriate ship of the United States Navy the 
U.S.S. Joseph Vittori, in honor of Marine Corporal Joseph 
Vittori (1929-1951) of Beverly, Massachusetts, who was 
posthumously awarded the Medal of Honor for actions against the 
enemy in Korea on September 15-16, 1951.

SEC. 1020. TRANSFER OF RIVERINE PATROL CRAFT.

    (a) Authority To Transfer Vessel.--Notwithstanding 
subsections (a) and (d) of section 7306 of title 10, United 
States Code, but subject to subsections (b) and (c) of that 
section, the Secretary of the Navy may transfer a vessel 
described in subsection (b) to Tidewater Community College, 
Portsmouth, Virginia, for scientific and educational purposes.
    (b) Vessel.--The authority under subsection (a) applies in 
the case of a riverine patrol craft of the U.S.S. Swift class.
    (c) Limitation.--The transfer authorized by subsection (a) 
may be made only if the Secretary determines that the vessel to 
be transferred is of no further use to the United States for 
national security purposes.
    (d) Terms and Conditions.--The Secretary may require such 
terms and conditions in connection with the transfer authorized 
by this section as the Secretary considers appropriate.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. REVISION AND CLARIFICATION OF AUTHORITY FOR FEDERAL SUPPORT 
                    OF DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES OF 
                    THE NATIONAL GUARD.

    (a) Funding Assistance Authorized.--Subsection (a) of 
section 112 of title 32, United States Code, is amended to read 
as follows:
    ``(a) Funding Assistance.--The Secretary of Defense may 
provide funds to the Governor of a State who submits to the 
Secretary a State drug interdiction and counter-drug activities 
plan satisfying the requirements of subsection (c). Such funds 
shall be used for--
            ``(1) the pay, allowances, clothing, subsistence, 
        gratuities, travel, and related expenses, as authorized 
        by State law, of personnel of the National Guard of 
        that State used, while not in Federal service, for the 
        purpose of drug interdiction and counter-drug 
        activities;
            ``(2) the operation and maintenance of the 
        equipment and facilities of the National Guard of that 
        State used for the purpose of drug interdiction and 
        counter-drug activities; and
            ``(3) the procurement of services and leasing of 
        equipment for the National Guard of that State used for 
        the purpose of drug interdiction and counter-drug 
        activities.''.
    (b) Reorganization of Section.--Such section is further 
amended--
            (1) by redesignating subsection (f) as subsection 
        (h);
            (2) by redesignating subsection (d) as subsection 
        (g) and transferring that subsection to appear before 
        subsection (h), as redesignated by paragraph (1); and
            (3) by redesignating subsections (b) and (c) as 
        subsections (c) and (d), respectively.
    (c) State Drug Interdiction and Counter-drug Activities 
Plan.--Subsection (c) of such section, as redesignated by 
subsection (b)(3), is amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``A plan referred to in subsection (a)'' 
        and inserting in lieu thereof ``A State drug 
        interdiction and counter-drug activities plan'';
            (2) by striking out ``and'' at the end of paragraph 
        (2); and
            (3) in paragraph (3)--
                    (A) by striking out ``annual training'' and 
                inserting in lieu thereof ``training'';
                    (B) by striking out the period at the end 
                and inserting in lieu thereof a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(4) include a certification by the Attorney 
        General of the State (or, in the case of a State with 
        no position of Attorney General, a civilian official of 
        the State equivalent to a State attorney general) that 
        the use of the National Guard of the State for the 
        activities proposed under the plan is authorized by, 
        and is consistent with, State law; and
            ``(5) certify that the Governor of the State or a 
        civilian law enforcement official of the State 
        designated by the Governor has determined that any 
        activities included in the plan that are carried out in 
        conjunction with Federal law enforcement agencies serve 
        a State law enforcement purpose.''.
    (d) Examination of State Plan.--Subsection (d) of such 
section, as redesignated by subsection (b)(3), is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``subsection (b)'' and 
                inserting in lieu thereof ``subsection (c)''; 
                and
                    (B) by inserting after ``Before funds are 
                provided to the Governor of a State under this 
                section'' the following: ``and before members 
                of the National Guard of that State are ordered 
                to full-time National Guard duty as authorized 
                in subsection (b)''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by striking out 
                ``subsection (b)'' and inserting in lieu 
                thereof ``subsection (c)''; and
                    (B) by striking out subparagraph (B) and 
                inserting in lieu thereof the following:
            ``(B) pursuant to the plan submitted for a previous 
        fiscal year, funds were provided to the State in 
        accordance with subsection (a) or personnel of the 
        National Guard of the State were ordered to perform 
        full-time National Guard duty in accordance with 
        subsection (b).''.
    (e) Use of Personnel Performing Full-Time National Guard 
Duty.--Such section is further amended by inserting after 
subsection (a) the following new subsection (b):
    ``(b) Use of Personnel Performing Full-Time National Guard 
Duty.--Under regulations prescribed by the Secretary of 
Defense, personnel of the National Guard of a State may, in 
accordance with the State drug interdiction and counter-drug 
activities plan referred to in subsection (c), be ordered to 
perform full-time National Guard duty under section 502(f) of 
this title for the purpose of carrying out drug interdiction 
and counter-drug activities.''.
    (f) End Strength Limitation.--Such section is further 
amended by inserting after subsection (e) the following new 
subsection (f):
    ``(f) End Strength Limitation.--(1) Except as provided in 
paragraph (2), at the end of a fiscal year there may not be 
more than 4000 members of the National Guard--
            ``(A) on full-time National Guard duty under 
        section 502(f) of this title to perform drug 
        interdiction or counter-drug activities pursuant to an 
        order to duty for a period of more than 180 days; or
            ``(B) on duty under State authority to perform drug 
        interdiction or counter-drug activities pursuant to an 
        order to duty for a period of more than 180 days with 
        State pay and allowances being reimbursed with funds 
        provided under subsection (a)(1).
    ``(2) The Secretary of Defense may increase the end 
strength authorized under paragraph (1) by not more than 20 
percent for any fiscal year if the Secretary determines that 
such an increase is necessary in the national security 
interests of the United States.''.
    (g) Definitions.--Subsection (h) of such section, as 
redesignated by subsection (b)(1), is amended by striking out 
paragraph (1) and inserting in lieu thereof the following:
            ``(1) The term `drug interdiction and counter-drug 
        activities', with respect to the National Guard of a 
        State, means the use of National Guard personnel in 
        drug interdiction and counter-drug law enforcement 
        activities authorized by the law of the State and 
        requested by the Governor of the State.''.
    (h) Technical Amendments.--Subsection (e) of such section 
is amended--
            (1) in paragraph (1), by striking out ``sections 
        517 and 524'' and inserting in lieu thereof ``sections 
        12011 and 12012''; and
            (2) in paragraph (2), by striking out ``the 
        Committees on Armed Services of the Senate and House of 
        Representatives'' and inserting in lieu thereof ``the 
        Committee on Armed Services of the Senate and the 
        Committee on National Security of the House of 
        Representatives''.

                     Subtitle D--Civilian Personnel

SEC. 1031. MANAGEMENT OF DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL.

    Section 129 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking out ``man-year constraint 
                or limitation'' and inserting in lieu thereof 
                ``constraint or limitation in terms of man 
                years, end strength, full-time equivalent 
                positions, or maximum number of employees''; 
                and
                    (B) by adding at the end the following new 
                sentence: ``The Secretary of Defense and the 
                Secretaries of the military departments may not 
                be required to make a reduction in the number 
                of full-time equivalent positions in the 
                Department of Defense unless such reduction is 
                necessary due to a reduction in funds available 
                to the Department or is required under a law 
                that is enacted after the date of the enactment 
                of the National Defense Authorization Act for 
                Fiscal Year 1996 and that refers specifically 
                to this subsection.'';
            (2) in subsection (b)(2), by striking out ``any 
        end-strength'' and inserting in lieu thereof ``any 
        constraint orlimitation in terms of man years, end 
strength, full-time equivalent positions, or maximum number of 
employees''; and
            (3) by adding at the end the following new 
        subsection:
    ``(d) With respect to each budget activity within an 
appropriation for a fiscal year for operations and maintenance, 
the Secretary of Defense shall ensure that there are employed 
during that fiscal year employees in the number and with the 
combination of skills and qualifications that are necessary to 
carry out the functions within that budget activity for which 
funds are provided for that fiscal year.''.

SEC. 1032. CONVERSION OF MILITARY POSITIONS TO CIVILIAN POSITIONS.

    (a) Conversion Requirement.--(1) By September 30, 1997, the 
Secretary of Defense shall convert at least 10,000 military 
positions to civilian positions.
    (2) At least 3,000 of the military positions converted to 
satisfy the requirement of paragraph (1) shall be converted to 
civilian positions not later than September 30, 1996.
    (3) In this subsection:
            (A) The term ``military position'' means a position 
        that, as of the date of the enactment of this Act, is 
        authorized to be filled by a member of the Armed Forces 
        on active duty.
            (B) The term ``civilian position'' means a position 
        that is required to be filled by a civilian employee of 
        the Department of Defense.
    (b) Implementation Plan.--Not later than March 31, 1996, 
the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a plan for the implementation 
of subsection (a).

SEC. 1033. ELIMINATION OF 120-DAY LIMITATION ON DETAILS OF CERTAIN 
                    EMPLOYEES.

    (a) Elimination of Limitation.--Subsection (b) of section 
3341 of title 5, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2) The 120-day limitation in paragraph (1) for details 
and renewals of details does not apply to the Department of 
Defense in the case of a detail--
            ``(A) made in connection with the closure or 
        realignment of a military installation pursuant to a 
        base closure law or an organizational restructuring of 
        the Department as part of a reduction in the size of 
        the armed forces or the civilian workforce of the 
        Department; and
            ``(B) in which the position to which the employee 
        is detailed is eliminated on or before the date of the 
        closure, realignment, or restructuring.
    ``(c) For purposes of this section--
            ``(1) the term `base closure law' means--
                    ``(A) section 2687 of title 10;
                    ``(B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                (10 U.S.C. 2687 note); and
                    ``(C) the Defense Base Closure and 
                Realignment Act of 1990 (10 U.S.C. 2687 note); 
                and
            ``(2) the term `military installation'--
                    ``(A) in the case of an installation 
                covered by section 2687 of title 10, has the 
                meaning given such term in subsection (e)(1) of 
                such section;
                    ``(B) in the case of an installation 
                covered by the Act referred to in subparagraph 
                (B) of paragraph (1), has the meaning given 
                such term in section 209(6) of such Act; and
                    ``(C) in the case of an installation 
                covered by the Act referred to in subparagraph 
                (C) of that paragraph, has the meaning given 
                such term in section 2910(4) of such Act.''.
    (b) Applicability.--The amendments made by subsection (a) 
apply to details made before the date of the enactment of this 
Act but still in effect on that date and details made on or 
after that date.

SEC. 1034. AUTHORITY FOR CIVILIAN EMPLOYEES OF DEPARTMENT OF DEFENSE TO 
                    PARTICIPATE VOLUNTARILY IN REDUCTIONS IN FORCE.

    Section 3502 of title 5, United States Code, is amended by 
adding at the end the following:
    ``(f)(1) The Secretary of Defense or the Secretary of a 
military department may--
            ``(A) release in a reduction in force an employee 
        who volunteers for the release even though the employee 
        is not otherwise subject to release in the reduction in 
        force under the criteria applicable under the other 
        provisions of this section; and
            ``(B) for each employee voluntarily released in the 
        reduction in force under subparagraph (A), retain an 
        employee in a similar position who would otherwise be 
        released in the reduction in force under such criteria.
    ``(2) A voluntary release of an employee in a reduction in 
force pursuant to paragraph (1) shall be treated as an 
involuntary release in the reduction in force.
    ``(3) An employee with critical knowledge and skills (as 
defined by the Secretary concerned) may not participate in a 
voluntary release under paragraph (1) if the Secretary 
concerned determines that such participation would impair the 
performance of the mission of the Department of Defense or the 
military department concerned.
    ``(4) The regulations prescribed under this section shall 
incorporate the authority provided in this subsection.
    ``(5) The authority under paragraph (1) may not be 
exercised after September 30, 1996.''.

SEC. 1035. AUTHORITY TO PAY SEVERANCE PAYMENTS IN LUMP SUMS.

    Section 5595 of title 5, United States Code, is amended by 
adding at the end the following:
    ``(i)(1) In the case of an employee of the Department of 
Defense who is entitled to severance pay under this section, 
the Secretary of Defense or the Secretary of the military 
department concerned may, upon application by the employee, pay 
thetotal amount of the severance pay to the employee in one 
lump sum.
    ``(2)(A) If an employee paid severance pay in a lump sum 
under this subsection is reemployed by the Government of the 
United States or the government of the District of Columbia at 
such time that, had the employee been paid severance pay in 
regular pay periods under subsection (b), the payments of such 
pay would have been discontinued under subsection (d) upon such 
reemployment, the employee shall repay to the Department of 
Defense (for the military department that formerly employed the 
employee, if applicable) an amount equal to the amount of 
severance pay to which the employee was entitled under this 
section that would not have been paid to the employee under 
subsection (d) by reason of such reemployment.
    ``(B) The period of service represented by an amount of 
severance pay repaid by an employee under subparagraph (A) 
shall be considered service for which severance pay has not 
been received by the employee under this section.
    ``(C) Amounts repaid to an agency under this paragraph 
shall be credited to the appropriation available for the pay of 
employees of the agency for the fiscal year in which received. 
Amounts so credited shall be merged with, and shall be 
available for the same purposes and the same period as, the 
other funds in that appropriation.
    ``(3) If an employee fails to repay to an agency an amount 
required to be repaid under paragraph (2)(A), that amount is 
recoverable from the employee as a debt due the United States.
    ``(4) This subsection applies with respect to severance pay 
payable under this section for separations taking effect on or 
after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1996 and before October 1, 
1999.''.

SEC. 1036. CONTINUED HEALTH INSURANCE COVERAGE.

    Section 8905a(d)(4) of title 5, United States Code, is 
amended--
            (1) in subparagraph (A), by inserting ``, or a 
        voluntary separation from a surplus position,'' after 
        ``an involuntary separation from a position''; and
            (2) by adding at the end the following new 
        subparagraph:
    ``(C) For the purpose of this paragraph, `surplus position' 
means a position which is identified in pre-reduction-in-force 
planning as no longer required, and which is expected to be 
eliminated under formal reduction-in-force procedures.''.

SEC. 1037. REVISION OF AUTHORITY FOR APPOINTMENTS OF INVOLUNTARILY 
                    SEPARATED MILITARY RESERVE TECHNICIANS.

    (a) Revision of Authority.--Section 3329 of title 5, United 
States Code, as added by section 544 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 
Stat. 2415), is amended--
            (1) in subsection (b), by striking out ``be 
        offered'' and inserting in lieu thereof ``be provided 
        placement consideration in a position described in 
        subsection (c) through a priority placement program of 
        the Department of Defense''; and
            (2) by striking out subsection (c) and inserting in 
        lieu thereof the following new subsection (c):
    ``(c)(1) The position for which placement consideration 
shall be provided to a former military technician under 
subsection (b) shall be a position--
            ``(A) in either the competitive service or the 
        excepted service;
            ``(B) within the Department of Defense; and
            ``(C) in which the person is qualified to serve, 
        taking into consideration whether the employee in that 
        position is required to be a member of a reserve 
        component of the armed forces as a condition of 
        employment.
    ``(2) To the maximum extent practicable, the position shall 
also be in a pay grade or other pay classification sufficient 
to ensure that the rate of basic pay of the former military 
technician, upon appointment to the position, is not less than 
the rate of basic pay last received by the former military 
technician for technician service before separation.''.
    (b) Technical and Clerical Amendments.--(1) The section 
3329 of title 5, United States Code, that was added by section 
4431 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 106 Stat. 2719) is redesignated as 
section 3330 of such title.
    (2) The table of sections at the beginning of chapter 33 of 
such title is amended by striking out the item relating to 
section 3329, as added by section 4431(b) of such Act (106 
Stat. 2720), and inserting in lieu thereof the following new 
item:

``3330. Government-wide list of vacant positions.''.

SEC. 1038. WEARING OF UNIFORM BY NATIONAL GUARD TECHNICIANS.

    (a) Requirement.--Section 709(b) of title 32, United States 
Code, is amended to read as follows:
    ``(b) Except as prescribed by the Secretary concerned, a 
technician employed under subsection (a) shall, while so 
employed--
            ``(1) be a member of the National Guard;
            ``(2) hold the military grade specified by the 
        Secretary concerned for that position; and
            ``(3) wear the uniform appropriate for the member's 
        grade and component of the armed forces while 
        performing duties as a technician.''.
    (b) Uniform Allowances for Officers.--Section 417 of title 
37, United States Code, is amended by adding at the end the 
following:
    ``(d)(1) For purposes of sections 415 and 416 of this 
title, a period for which an officer of an armed force, while 
employed as a National Guard technician, is required to wear a 
uniform under section 709(b) of title 32 shall be treated as a 
period of active duty (other than for training).
    ``(2) A uniform allowance may not be paid, and uniforms may 
not be furnished, to an officer under section 1593 of title 10 
or section 5901 of title 5 for a period of employmentreferred 
to in paragraph (1) for which an officer is paid a uniform allowance 
under section 415 or 416 of this title.''.
    (c) Clothing or Allowances for Enlisted Members.--Section 
418 of title 37, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The President''; 
        and
            (2) by adding at the end the following:
    ``(b) In determining the quantity and kind of clothing or 
allowances to be furnished pursuant to regulations prescribed 
under this section to persons employed as National Guard 
technicians under section 709 of title 32, the President shall 
take into account the requirement under subsection (b) of such 
section for such persons to wear a uniform.
    ``(c) A uniform allowance may not be paid, and uniforms may 
not be furnished, under section 1593 of title 10 or section 
5901 of title 5 to a person referred to in subsection (b) for a 
period of employment referred to in that subsection for which a 
uniform allowance is paid under section 415 or 416 of this 
title.''.

SEC. 1039. MILITARY LEAVE FOR MILITARY RESERVE TECHNICIANS FOR CERTAIN 
                    DUTY OVERSEAS.

    Section 6323 of title 5, United States Code, is amended by 
adding at the end the following new subsection:
    ``(d)(1) A military reserve technician described in section 
8401(30) is entitled at such person's request to leave without 
loss of, or reduction in, pay, leave to which such person is 
otherwise entitled, credit for time or service, or performance 
or efficiency rating for each day, not to exceed 44 workdays in 
a calendar year, in which such person is on active duty without 
pay, as authorized pursuant to section 12315 of title 10, under 
section 12301(b) or 12301(d) of title 10 (other than active 
duty during a war or national emergency declared by the 
President or Congress) for participation in noncombat 
operations outside the United States, its territories and 
possessions.
    ``(2) An employee who requests annual leave or compensatory 
time to which the employee is otherwise entitled, for a period 
during which the employee would have been entitled upon request 
to leave under this subsection, may be granted such annual 
leave or compensatory time without regard to this section or 
section 5519.''.

SEC. 1040. PERSONNEL ACTIONS INVOLVING EMPLOYEES OF NONAPPROPRIATED 
                    FUND INSTRUMENTALITIES.

    (a) Clarification of Definition of Nonappropriated Fund 
Instrumentality Employee.--Subsection (a)(1) of section 1587 of 
title 10, United States Code, is amended by adding at the end 
the following new sentence: ``Such term includes a civilian 
employee of a support organization within the Department of 
Defense or a military department, such as the Defense Finance 
and Accounting Service, who is paid from nonappropriated funds 
on account of the nature of the employee's duties.''.
    (b) Direct Reporting of Violations.--Subsection (e) of such 
section is amended in the second sentence by inserting before 
the period the following: ``and to permit the reporting of 
alleged violations of subsection (b) directly to the Inspector 
General of the Department of Defense''.
    (c) Technical Amendment.--Subsection (a)(1) of such section 
is further amended by striking out ``Navy Resale and Services 
Support Office'' and inserting in lieu thereof ``Navy Exchange 
Service Command''.
    (d) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 1587. Employees of nonappropriated fund instrumentalities: 
                    reprisals''.

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 81 of such title is 
amended to read as follows:

``1587. Employees of nonappropriated fund instrumentalities: 
          reprisals.''.

SEC. 1041. COVERAGE OF NONAPPROPRIATED FUND EMPLOYEES UNDER AUTHORITY 
                    FOR FLEXIBLE AND COMPRESSED WORK SCHEDULES.

    Paragraph (2) of section 6121 of title 5, United States 
Code, is amended to read as follows:
            ``(2) `employee' has the meaning given the term in 
        subsection (a) of section 2105 of this title, except 
        that such term also includes an employee described in 
        subsection (c) of that section;''.

SEC. 1042. LIMITATION ON PROVISION OF OVERSEAS LIVING QUARTERS 
                    ALLOWANCES FOR NONAPPROPRIATED FUND INSTRUMENTALITY 
                    EMPLOYEES.

    (a) Conforming Allowance to Allowances for Other Civilian 
Employees.--Subject to subsection (b), an overseas living 
quarters allowance paid from nonappropriated funds and provided 
to a nonappropriated fund instrumentality employee after the 
date of the enactment of this Act may not exceed the amount of 
a quarters allowance provided under subchapter III of chapter 
59 of title 5 to a similarly situated civilian employee of the 
Department of Defense paid from appropriated funds.
    (b) Application to Certain Current Employees.--In the case 
of a nonappropriated fund instrumentality employee who, as of 
the date of the enactment of this Act, receives an overseas 
living quarters allowance under any other authority, subsection 
(a) shall apply to such employee only after the earlier of--
            (1) September 30, 1997; or
            (2) the date on which the employee otherwise ceases 
        to be eligible for such an allowance under such other 
        authority.
    (c) Nonappropriated Fund Instrumentality Employee 
Defined.--For purposes of this section, the term 
``nonappropriated fund instrumentality employee'' has the 
meaning given such term in section 1587(a)(1) of title 10, 
United States Code.

SEC. 1043. ELECTIONS RELATING TO RETIREMENT COVERAGE.

    (a) In General.--
            (1) Civil service retirement system.--Section 
        8347(q) of title 5, United States Code, is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``of the Department 
                        of Defense or the Coast Guard'' in the 
                        matter before subparagraph (A); and
                            (ii) by striking ``3 days'' and 
                        inserting ``1 year''; and
                    (B) in paragraph (2)(C)--
                            (i) by striking ``3 days'' and 
                        inserting ``1 year''; and
                            (ii) by striking ``in the 
                        Department of Defense or the Coast 
                        Guard, respectively,''.
            (2) Federal employees' retirement system.--Section 
        8461(n) of title 5, United States Code, is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``of the Department 
                        of Defense or the Coast Guard'' in the 
                        matter before subparagraph (A); and
                            (ii) by striking ``3 days'' and 
                        inserting ``1 year''; and
                    (B) in paragraph (2)(C)--
                            (i) by striking ``3 days'' and 
                        inserting ``1 year''; and
                            (ii) by striking ``in the 
                        Department of Defense or the Coast 
                        Guard, respectively,''.
    (b) Regulations.--Not later than 6 months after the date of 
the enactment of this Act, the Office of Personnel Management 
(and each of the other administrative authorities, within the 
meaning of subsection (c)(2)(C)(iii)) shall prescribe any 
regulations (or make any modifications in existing regulations) 
necessary to carry out this section and the amendments made by 
this section, including regulations to provide for the 
notification of individuals who may be affected by the 
enactment of this section. All regulations (and modifications 
to regulations) under the preceding sentence shall take effect 
on the same date.
    (c) Applicability; Related Provisions.--
            (1) Prospective rules.--Except as otherwise 
        provided in this subsection, the amendments made by 
        this section shall apply with respect to moves 
        occurring on or after the effective date of the 
        regulations under subsection (b). Moves occurring on or 
        after the date of the enactment of this Act and before 
        the effective date of such regulations shall be subject 
        to applicable provisions of title 5, United States 
        Code, disregarding the amendments made by this section, 
        except that any individual making an election pursuant 
        to this sentence shall be ineligible to make an 
        election otherwise allowable under paragraph (2).
            (2) Retroactive rules.--
                    (A) In general.--The regulations under 
                subsection (b) shall include provisions for the 
                application of sections 8347(q) and 8461(n) of 
                title 5, United States Code, as amended by this 
                section, with respect to any individual who, at 
                any time after December 31, 1965, and before 
                the effective date of such regulations, moved 
                between positions in circumstances that would 
                have qualified such individual to make an 
                election under the provisions of such section 
                8347(q) or 8461(n), as so amended, if such 
                provisions had then been in effect.
                    (B) Deadline; related provisions.--An 
                election pursuant to this paragraph--
                            (i) shall be made within 1 year 
                        after the effective date of the 
                        regulations under subsection (b), and
                            (ii) shall have the same force and 
                        effect as if it had been timely made at 
                        the time of the move,

                except that no such election may be made by any 
                individual--
                            (I) who has previously made, or had 
                        an opportunity to make, an election 
                        under section 8347(q) or 8461(n) of 
                        title 5, United States Code (as in 
                        effect before being amended by this 
                        section); however, this subclause shall 
                        not be considered to render an 
                        individual ineligible, based on an 
                        opportunity arising out of a move 
                        occurring during the period described 
                        in the second sentence of paragraph 
                        (1), if no election has in fact been 
                        made by such individual based on such 
                        move;
                            (II) who has not, since the move on 
                        which eligibility for the election is 
                        based, remained continuously subject 
                        (disregarding any break in service of 
                        less than 3 days) to CSRS or FERS or 
                        both seriatim (if the move was from a 
                        NAFI position) or any retirement system 
                        (or 2 or more such systems seriatim) 
                        established for employees described in 
                        section 2105(c) of such title (if the 
                        move was to a NAFI position); or
                            (III) if such election would be 
                        based on a move to the Civil Service 
                        Retirement System from a retirement 
                        system established for employees 
                        described in section 2105(c) of such 
                        title.
                    (C) Transfers of contributions.--
                            (i) In general.--If an individual 
                        makes an election under this paragraph 
                        to be transferred back to a retirement 
                        system in which such individual 
                        previously participated (in this 
                        section referred to as the ``previous 
                        system''), all individual contributions 
                        (including interest) and Government 
                        contributions to the retirement system 
                        in which such individual is then 
                        currently participating (in this 
                        section referred to as the ``current 
                        system''), excluding those made to the 
                        Thrift Savings Plan or any other 
                        defined contribution plan, which are 
                        attributable to periods of service 
                        performed since the move on which the 
                        election is based, shall be paid to the 
                        fund, account, or other repository for 
                        contributions made under the previous 
                        system. For purposes of this section, 
                        the term ``current system'' shall be 
                        considered also to include any 
                        retirement system (besides the one in 
                        which the individual is participating 
                        at the time of making the election) in 
                        which such individual previously 
                        participated since the move on which 
                        the election is based.
                            (ii) Condition subsequent relating 
                        to repayment of lump-sum credit.--In 
                        the case of an individual who has 
                        received such individual's lump-sum 
                        credit (within the meaning of section 
                        8401(19) of title 5, United States 
                        Code, or a similar payment) from such 
                        individual's previous system, the 
                        payment described in clause (i) shall 
                        not be made (and the election to which 
                        it relates shall be ineffective) unless 
                        such lump-sum credit is redeposited or 
                        otherwise paid at such time and in such 
                        manner as shall be required under 
                        applicable regulations. Regulations to 
                        carry out this clause shall include 
                        provisions for the computation of 
                        interest (consistent with section 
                        8334(e) (2) and (3) of title 5, United 
                        States Code), if no provisions for such 
                        computation otherwise exist.
                            (iii) Condition subsequent relating 
                        to deficiency in payments relative to 
                        amounts needed to ensure that benefits 
                        are fully funded.--
                                    (I) In general.--Except as 
                                provided in subclause (II), the 
                                payment described in clause (i) 
                                shall not be made (and the 
                                election to which it relates 
                                shall be ineffective) if the 
                                actuarial present value of the 
                                future benefits that would be 
                                payable under the previous 
                                system with respect to service 
                                performed by such individual 
                                after the move on which the 
                                election under this paragraph 
                                is based and before the 
                                effective date of the election, 
                                exceeds the total amounts 
                                required to be transferred to 
                                the previous system under the 
                                preceding provisions of this 
                                subparagraph with respect to 
                                such service, as determined by 
                                the authority administering 
                                such previous system (in this 
                                section referred to as the 
                                ``administrative authority'').
                                    (II) Payment of 
                                deficiency.--A determination of 
                                a deficiency under this clause 
                                shall not render an election 
                                ineffective if the individual 
                                pays or arranges to pay, at a 
                                time and in a manner 
                                satisfactory to such 
                                administrative authority, the 
                                full amount of the deficiency 
                                described in subclause (I).
                    (D) Alternative election for an individual 
                then participating in fers.--
                            (i) Applicability.--This 
                        subparagraph applies with respect to 
                        any individual who--
                                    (I) is then currently 
                                participating in FERS; and
                                    (II) would then otherwise 
                                be eligible to make an election 
                                under subparagraphs (A) through 
                                (C) of this paragraph, 
                                determined disregarding the 
                                matter in subclause (I) of 
                                subparagraph (B) before the 
                                first semicolon therein.
                            (ii) Election.--An individual 
                        described in clause (i) may, instead of 
                        making an election for which such 
                        individual is otherwise eligible under 
                        this paragraph, elect to have all prior 
                        qualifying NAFI service of such 
                        individual treated as creditable 
                        service for purposes of any annuity 
                        under FERS payable out of the Civil 
                        Service Retirement and Disability Fund.
                            (iii) Qualifying nafi service.--For 
                        purposes of this subparagraph, the term 
                        ``qualifying NAFI service'' means any 
                        service which, but for this 
                        subparagraph, would be creditable for 
                        purposes of any retirement system 
                        established for employees described in 
                        section 2105(c) of title 5, United 
                        States Code.
                            (iv) Service ceases to be 
                        creditable for nafi retirement system 
                        purposes.--Any qualifying NAFI service 
                        that becomes creditable for FERS 
                        purposes by virtue of an election made 
                        under this subparagraph shall not be 
                        creditable for purposes of any 
                        retirement system referred to in clause 
                        (iii).
                            (v) Conditions.--An election under 
                        this subparagraph shall be subject to 
                        requirements, similar to those set 
                        forth in subparagraph (C), to ensure 
                        that--
                                    (I) appropriate transfers 
                                of individual and Government 
                                contributions are made to the 
                                Civil Service Retirement and 
                                Disability Fund; and
                                    (II) the actuarial present 
                                value of future benefits under 
                                FERS attributable to service 
                                made creditable by such 
                                election is fully funded.
                    (E) Alternative election for an individual 
                then participating in a nafi retirement 
                system.--
                            (i) Applicability.--This 
                        subparagraph applies with respect to 
                        any individual who--
                                    (I) is then currently 
                                participating in any retirement 
                                system established for 
                                employees described in section 
                                2105(c) of title 5, United 
                                States Code (in this 
                                subparagraph referred to as a 
                                ``NAFI retirement system''); 
                                and
                                    (II) would then otherwise 
                                be eligible to make an election 
                                under subparagraphs (A) through 
                                (C) of this paragraph 
                                (determined disregarding the 
                                matter in subclause (I) of 
                                subparagraph (B) before the 
                                first semicolon therein) based 
                                on a move from FERS.
                            (ii) Election.--An individual 
                        described in clause (i) may, instead of 
                        making an election for which such 
                        individual is otherwise eligible under 
                        this paragraph, elect to have all prior 
                        qualifying FERS service of such 
                        individual treated as creditable 
                        service for purposes of determining 
                        eligibility for benefits under a NAFI 
                        retirement system, but not for purposes 
                        of computing the amount of any such 
                        benefits except as provided in clause 
                        (v)(II).
                            (iii) Qualifying fers service.--For 
                        purposes of this subparagraph, the term 
                        ``qualifying FERS service'' means any 
                        service which, but for this 
                        subparagraph, would be creditable for 
                        purposes of the Federal Employees' 
                        Retirement System.
                            (iv) Service ceases to be 
                        creditable for purposes of fers.--Any 
                        qualifying FERS service that becomes 
                        creditable for NAFI purposes by virtue 
                        of an election made under this 
                        subparagraph shall not be creditable 
                        for purposes of the Federal Employees' 
                        Retirement System.
                            (v) Funding requirements.--
                                    (I) In general.--Except as 
                                provided in subclause (II), 
                                nothing in this section or in 
                                any other provision of law or 
                                any other authority shall be 
                                considered to require any 
                                payment or transfer of monies 
                                in order for an election under 
                                this subparagraph to be 
                                effective.
                                    (II) Contribution required 
                                only if individual elects to 
                                have service made creditable 
                                for computation purposes as 
                                well.--Under regulations 
                                prescribed by the appropriate 
                                administrative authority, an 
                                individual making an election 
                                under this subparagraph may 
                                further elect to have the 
                                qualifying FERS service made 
                                creditable for computation 
                                purposes under a NAFI 
                                retirement system, but only if 
                                the individual pays or arranges 
                                to pay, at a time and in a 
                                manner satisfactory to such 
                                administrative authority, the 
                                amount necessary to fully fund 
                                the actuarial present value of 
                                future benefits under the NAFI 
                                retirement system attributable 
                                to the qualifying FERS service.
            (3) Information.--The regulations under subsection 
        (b) shall include provisions under which any 
        individual--
                    (A) shall, upon request, be provided 
                information or assistance in determining 
                whether such individual is eligible to make an 
                election under paragraph (2) and, if so, the 
                exact amount of any payment which would be 
                required of such individual in connection with 
                any such election; and
                    (B) may seek any other information or 
                assistance relating to any such election.
    (d) Creditability of NAFI Service for RIF Purposes.--
            (1) In general.--Clause (ii) of section 3502(a)(C) 
        of title 5, United States Code, is amended by striking 
        ``January 1, 1987'' and inserting ``January 1, 1966''.
            (2) Effective date.--Notwithstanding any provision 
        of subsection (c), the amendment made by paragraph (1) 
        shall--
                    (A) take effect on the date of the 
                enactment of this Act; and
                    (B) apply with respect to any reduction in 
                force carried out on or after such date.

SEC. 1044. EXTENSION OF TEMPORARY AUTHORITY TO PAY CIVILIAN EMPLOYEES 
                    WITH RESPECT TO THE EVACUATION FROM GUANTANAMO, 
                    CUBA.

    (a) Extension of Authority.--The Secretary of Defense may, 
until the end of January 31, 1996, and without regard to the 
time limitations specified in subsection (a) of section 5523 of 
title 5, United States Code, make payments under the provisions 
of such section from funds available for the pay of civilian 
personnel in the case of employees, or an employee's dependents 
or immediate family, evacuated from Guantanamo Bay, Cuba, 
pursuant to the August 26, 1994 order of the Secretary. This 
section shall take effect as of October 1, 1995, and shall 
apply with respect to payments made for periods occurring on or 
after that date.
    (b) Monthly Report.--On the first day of each month 
beginning after the date of the enactment of this Act and 
ending before March 1996, the Secretary of the Navy shall 
transmit to the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of 
Representatives a report regarding the payment of employees 
pursuant to subsection (a). Each such report shall include, for 
the month preceding the month in which the report is 
transmitted, a statement of the following:
            (1) The number of the employees paid pursuant to 
        such section.
            (2) The positions of employment of the employees.
            (3) The number and location of the employees' 
        dependents and immediate families.
            (4) The actions taken by the Secretary to eliminate 
        the conditions which necessitated the payments.

            Subtitle E--Miscellaneous Reporting Requirements

SEC. 1051. REPORT ON FISCAL YEAR 1997 BUDGET SUBMISSION REGARDING GUARD 
                    AND RESERVE COMPONENTS.

    (a) Report.--The Secretary of Defense shall submit to the 
congressional defense committees, at the same time that the 
President submits the budget for fiscal year 1997 under section 
1105(a) of title 31, United States Code, a report on amounts 
requested in that budget for the Guard and Reserve components.
    (b) Content.--The report shall include the following:
            (1) A description of the anticipated effect that 
        the amounts requested (if approved by Congress) will 
        have to enhance the capabilities of each of the Guard 
        and Reserve components.
            (2) A listing, with respect to each such component, 
        of each of the following:
                    (A) The amount requested for each major 
                weapon system for which funds are requested in 
                the budget for that component.
                    (B) The amount requested for each item of 
                equipment (other than a major weapon system) 
                for which funds are requested in the budget for 
                that component.
                    (C) The amount requested for each military 
                construction project, together with the 
                location of each such project, for which funds 
                are requested in the budget for that component.
    (c) Inclusion of Information in Next FYDP.--The Secretary 
of Defense shall specifically display in the next future-years 
defense program (or program revision) submitted to Congress 
after the date of the enactment of this Act the amounts 
programmed for procurement of equipment and for military 
construction for each of the Guard and Reserve components.
    (d) Definition.--For purposes of this section, the term 
``Guard and Reserve components'' means the following:
            (1) The Army Reserve.
            (2) The Army National Guard of the United States.
            (3) The Naval Reserve.
            (4) The Marine Corps Reserve.
            (5) The Air Force Reserve.
            (6) The Air National Guard of the United States.

SEC. 1052. REPORT ON DESIRABILITY AND FEASIBILITY OF PROVIDING 
                    AUTHORITY FOR USE OF FUNDS DERIVED FROM RECOVERED 
                    LOSSES RESULTING FROM CONTRACTOR FRAUD.

    (a) Report.--Not later than April 1, 1996, the Secretary of 
Defense shall submit to Congress a report on the 
desirabilityand feasibility of authorizing by law the retention and use 
by the Department of Defense of a specified portion (not to exceed 
three percent) of amounts recovered by the Government during any fiscal 
year from losses and expenses incurred by the Department of Defense as 
a result of contractor fraud at military installations.
    (b) Matters To Be Included.--The report shall include the 
views of the Secretary of Defense regarding--
            (1) the degree to which such authority would create 
        enhanced incentives for the discovery, investigation, 
        and resolution of contractor fraud at military 
        installations; and
            (2) the appropriate allocation for funds that would 
        be available for expenditure pursuant to such 
        authority.

SEC. 1053. REPORT OF NATIONAL POLICY ON PROTECTING THE NATIONAL 
                    INFORMATION INFRASTRUCTURE AGAINST STRATEGIC 
                    ATTACKS.

    Not later than 120 days after the date of the enactment of 
this Act, the President shall submit to Congress a report 
setting forth the results of a review of the national policy on 
protecting the national information infrastructure against 
strategic attacks. The report shall include the following:
            (1) A description of the national policy and 
        architecture governing the plans for establishing 
        procedures, capabilities, systems, and processes 
        necessary to perform indications, warning, and 
        assessment functions regarding strategic attacks by 
        foreign nations, groups, or individuals, or any other 
        entity against the national information infrastructure.
            (2) An assessment of the future of the National 
        Communications System (NCS), which has performed the 
        central role in ensuring national security and 
        emergency preparedness communications for essential 
        United States Government and private sector users, 
        including a discussion of--
                    (A) whether there is a Federal interest in 
                expanding or modernizing the National 
                Communications System in light of the changing 
                strategic national security environment and the 
                revolution in information technologies; and
                    (B) the best use of the National 
                Communications System and the assets and 
                experience it represents as an integral part of 
                a larger national strategy to protect the 
                United States against a strategic attack on the 
                national information infrastructure.

SEC. 1054. REPORT ON DEPARTMENT OF DEFENSE BOARDS AND COMMISSIONS.

    (a) Study.--The Secretary of Defense shall conduct a study 
of the boards and commissions described in subsection (c). As 
part of such study, the Secretary shall determine, with respect 
to each such board or commission that received support from the 
Department of Defense during fiscal year 1995, whether that 
board or commission merits continued support from the 
Department.
    (b) Report.--Not later than April 1, 1996, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives a report on the results of the study. The 
report shall include the following:
            (1) A list of each board and commission described 
        in subsection (c) that received support from the 
        Department of Defense during fiscal year 1995.
            (2) With respect to the boards and commissions 
        specified on the list under paragraph (1)--
                    (A) a list of each such board or commission 
                concerning which the Secretary determined under 
                subsection (a) that continued support from the 
                Department of Defense is merited; and
                    (B) a list of each such board or commission 
                concerning which the Secretary determined under 
                subsection (a) that continued support from the 
                Department if not merited.
            (3) For each board and commission specified on the 
        list under paragraph (2)(A), a description of--
                    (A) the purpose of the board or commission;
                    (B) the nature and cost of the support 
                provided by the Department to the board or 
                commission during fiscal year 1995;
                    (C) the nature and duration of the support 
                that the Secretary proposes to provide to the 
                board or commission;
                    (D) the anticipated cost to the Department 
                of providing such support; and
                    (E) a justification of the determination 
                that the board or commission merits the 
                continued support of the Department.
            (4) For each board and commission specified on the 
        list under paragraph (2)(B), a description of--
                    (A) the purpose of the board or commission;
                    (B) the nature and cost of the support 
                provided by the Department to the board or 
                commission during fiscal year 1995; and
                    (C) a justification of the determination 
                that the board or commission does not merit the 
                continued support of the Department.
    (c) Covered Boards and Commissions.--Subsection (a) applies 
to any board or commission (including any board or commission 
authorized by law) that operates within or for the Department 
of Defense and that--
            (1) provides only policy-making assistance or 
        advisory services for the Department; or
            (2) carries out only activities that are not 
        routine activities, on-going activities, or activities 
        necessary to the routine, on-going operations of the 
        Department.
    (d) Support Defined.--For purposes of this section, the 
term ``support'' includes the provision of any of the 
following:
            (1) Funds.
            (2) Equipment, materiel, or other assets.
            (3) Services of personnel.

SEC. 1055. DATE FOR SUBMISSION OF ANNUAL REPORT ON SPECIAL ACCESS 
                    PROGRAMS.

    Section 119(a) of title 10, United States Code, is amended 
by striking out ``February 1'' and inserting in lieu thereof 
``March 1''.

  Subtitle F--Repeal of Certain Reporting and Other Requirements and 
                              Authorities

SEC. 1061. REPEAL OF MISCELLANEOUS PROVISIONS OF LAW.

    (a) Volunteers Investing in Peace and Security Program.--
(1) Chapter 89 of title 10, United States Code, is repealed.
    (2) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part II of subtitle A, of such title 
are each amended by striking out the item relating to chapter 
89.
    (b) Security and Control of Supplies.--(1) Chapter 171 of 
such title is repealed.
    (2) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part IV of subtitle A, of such title 
are each amended by striking out the item relating to chapter 
171.
    (c) Annual Authorization of Military Training Student 
Loads.--Section 115 of such title is amended--
            (1) in subsection (a), by striking out paragraph 
        (3);
            (2) in subsection (b)--
                    (A) by inserting ``or'' at the end of 
                paragraph (1);
                    (B) by striking out ``; or'' at the end of 
                paragraph (2) and inserting in lieu thereof a 
                period; and
                    (C) by striking out paragraph (3); and
            (3) by striking out subsection (f).
    (d) Portions of Annual Manpower Requirements Report.--
Section 115a of such title is amended--
            (1) in subsection (b)(2), by striking out 
        subparagraph (C);
            (2) by striking out subsection (d);
            (3) by redesignating subsection (e) as subsection 
        (d) and striking out paragraphs (4) and (5) thereof;
            (4) by striking out subsection (f); and
            (5) by redesignating subsection (g) as subsection 
        (e).
    (e) Obsolete Authority for Payment of Stipends for Members 
of Certain Advisory Committees and Boards of Visitors of 
Service Academies.--(1) The second sentence of each of sections 
173(b) and 174(b) of such title is amended to read as follows: 
``Other members and part-time advisers shall (except as 
otherwise specifically authorized by law) serve without 
compensation for such service.''.
    (2) Sections 4355(h), 6968(h), and 9355(h) of such title 
are amended by striking out ``is entitled to not more than $5 a 
day and''.
    (f) Annual Budget Information Concerning Recruiting 
Costs.--(1) Section 227 of such title is repealed.
    (2) The table of sections at the beginning of chapter 9 of 
such title is amended by striking out the item relating to 
section 227.
    (g) Expired Authority Relating to Peacekeeping 
Activities.--(1) Section 403 of such title is repealed.
    (2) The table of sections at the beginning of subchapter I 
of chapter 20 of such title is amended by striking out the item 
relating to section 403.
    (h) Procurement of Gasohol for Department of Defense Motor 
Vehicles.--(1) Subsection (a) of section 2398 of such title is 
repealed.
    (2) Such section is further amended--
            (A) by redesignating subsections (b) and (c) as 
        subsections (a) and (b), respectively; and
            (B) in subsection (b), as so redesignated, by 
        striking out ``subsection (b)'' and inserting in lieu 
        thereof ``subsection (a)''.
    (i) Requirement of Notice of Certain Disposals and Gifts by 
Secretary of Navy.--Section 7545 of such title is amended--
            (1) by striking out subsection (c); and
            (2) by redesignating subsection (d) as subsection 
        (c).
    (j) Annual Report on Biological Defense Research Program.--
(1) Section 2370 of such title is repealed.
    (2) The table of sections at the beginning of chapter 139 
of such title is amended by striking out the item relating to 
such section.
    (k) Reports and Notifications Relating to Chemical and 
Biological Agents.--Subsection (a) of section 409 of Public Law 
91-121 (50 U.S.C. 1511) is repealed.
    (l) Annual Report on Balanced Technology Initiative.--
Subsection (e) of section 211 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 103 Stat. 1394) is repealed.
    (m) Report on Environmental Restoration Costs for 
Installations To Be Closed Under 1990 Base Closure Law.--
Section 2827 of the National Defense Authorization Act for 
Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 2687 
note) is amended by striking out subsection (b).
    (n) Limitation on American Diplomatic Facilities in 
Germany.--Section 1432 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1833) 
is repealed.

SEC. 1062. REPORTS REQUIRED BY TITLE 10, UNITED STATES CODE.

    (a) Annual Report on Relocation Assistance Programs.--
Section 1056 of title 10, United States Code, is amended--
            (1) by striking out subsection (f); and
            (2) by redesignating subsection (g) as subsection 
        (f).
    (b) Notice of Salary Increases for Foreign National 
Employees.--Section 1584 of such title is amended--
            (1) by striking out subsection (b); and
            (2) in subsection (a), by striking out ``(a) Waiver 
        of Employment Restrictions for Certain Personnel.--''.
    (c) Notice Regarding Contracts Performed for Periods 
Exceeding 10 Years.--(1) Section 2352 of such title is 
repealed.
    (2) The table of sections at the beginning of chapter 139 
of such title is amended by striking out the item relating to 
section 2352.
    (d) Report on Low-Rate Production Under Naval Vessel and 
Military Satellite Programs.--Section 2400(c) of such title is 
amended--
            (1) by striking out paragraph (2); and
            (2) in paragraph (1)--
                    (A) by striking out ``(1)''; and
                    (B) by redesignating clauses (A) and (B) as 
                clauses (1) and (2), respectively.
    (e) Report on Waivers of Prohibition on Employment of 
Felons.--Section 2408(a)(3) of such title is amended by 
striking out the second sentence.
    (f) Report on Determination Not To Debar for Fraudulent Use 
of Labels.--Section 2410f(a) of such title is amended by 
striking out the second sentence.
    (g) Notice of Military Construction Contracts on Guam.--
Section 2864(b) of such title is amended by striking out 
``after the 21-day period'' and all that follows through 
``determination''.

SEC. 1063. REPORTS REQUIRED BY DEFENSE AUTHORIZATION AND APPROPRIATIONS 
                    ACTS.

    (a) Public Law 99-661 Requirement for Report on Funding for 
Nicaraguan Democratic Resistance.--Section 1351 of the National 
Defense Authorization Act for Fiscal Year 1987 (Public Law 99-
661; 100 Stat. 3995; 10 U.S.C. 114 note) is amended--
            (1) by striking out subsection (b); and
            (2) in subsection (a), by striking out ``(a) 
        Limitation.--''.
    (b) Annual Report on Overseas Military Facility Investment 
Recovery Account.--Section 2921 of the Military Construction 
Authorization Act for Fiscal Year 1991 (division B of Public 
Law 101-510; 10 U.S.C. 2687 note) is amended--
            (1) by striking out subsection (f); and
            (2) by redesignating subsections (g) and (h) as 
        subsections (f) and (g), respectively.
    (c) Science, Mathematics, and Engineering Education Master 
Plan.--Section 829 of the National Defense Authorization Act 
for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
1444; 10 U.S.C. 2192 note) is repealed.
    (d) Report Regarding Heating Facility Modernization at 
Kaiserslautern.--Section 8008 of the Department of Defense 
Appropriations Act, 1994 (Public Law 103-139; 107 Stat. 1438), 
is amended by inserting ``but without regard to the 
notification requirement in subsection (b)(2) of such 
section,'' after ``section 2690 of title 10, United States 
Code,''.

SEC. 1064. REPORTS REQUIRED BY OTHER PROVISIONS OF LAW.

    (a) Requirement Under Arms Export Control Act for Quarterly 
Report on Price and Availability Estimates.--Section 28 of the 
Arms Export Control Act (22 U.S.C. 2768) is repealed.
    (b) Annual Report on National Security Agency Executive 
Personnel.--Section 12(a) of the National Security Agency Act 
of 1959 (50 U.S.C. 402 note) is amended by striking out 
paragraph (5).
    (c) Reports Concerning Certain Federal Contracting and 
Financial Transactions.--Section 1352 of title 31, United 
States Code, is amended--
            (1) in subsection (b)(6)(A), by inserting ``(other 
        than the Secretary of Defense and Secretary of a 
        military department)'' after ``The head of each 
        agency''; and
            (2) in subsection (d)(1), by inserting ``(other 
        than in the case of the Department of Defense or a 
        military department)'' after ``paragraph (3) of this 
        subsection''.
    (d) Annual Report on Water Resources Project Agreements.--
Section 221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-
5b) is amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsection (f) as subsection 
        (e).
    (e) Annual Report on Construction of Tennessee-Tombigbee 
Waterway.--Section 185 of the Water Resources Development Act 
of 1976 (33 U.S.C. 544c) is amended by striking out the second 
sentence.
    (f) Annual Report on Monitoring of Navy Home Port Waters.--
Section 7 of the Organotin Antifouling Paint Control Act of 
1988 (33 U.S.C. 2406) is amended--
            (1) by striking out subsection (d); and
            (2) by redesignating subsections (e) and (f) as 
        subsections (d) and (e), respectively.

          Subtitle G--Department of Defense Education Programs

SEC. 1071. CONTINUATION OF UNIFORMED SERVICES UNIVERSITY OF THE HEALTH 
                    SCIENCES.

    (a) Policy.--Congress reaffirms--
            (1) the prohibition set forth in subsection (a) of 
        section 922 of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
        2829; 10 U.S.C. 2112 note) regarding closure of the 
        Uniformed Services University of the Health Sciences; 
        and
            (2) the expression of the sense of Congress set 
        forth in subsection (b) of such section regarding the 
        budgetary commitment to continuation of the university.
    (b) Personnel Strength.--During the five-year period 
beginning on October 1, 1995, the personnel staffing levels for 
the Uniformed Services University of the Health Services may 
not be reduced below the personnel staffing levels for the 
university as of October 1, 1993.
    (c) Budgetary Commitment to Continuation.--It is the sense 
of Congress that the Secretary of Defense should budget for the 
operation of the Uniformed Services University of the Health 
Sciences during fiscal year 1997 at a level at least equal to 
the level of operations conducted at the University during 
fiscal year 1995.

SEC. 1072. ADDITIONAL GRADUATE SCHOOLS AND PROGRAMS AT UNIFORMED 
                    SERVICES UNIVERSITY OF THE HEALTH SCIENCES.

    (a) Additional Schools and Programs.--Subsection (h) of 
section 2113 of title 10, United States Code, is amended to 
read as follows:
    ``(h) The Secretary of Defense may establish the following 
educational programs at the University:
            ``(1) Postdoctoral, postgraduate, and technological 
        institutes.
            ``(2) A graduate school of nursing.
            ``(3) Other schools or programs that the Secretary 
        determines necessary in order to operate the University 
        in a cost-effective manner.''.
    (b) Conforming Amendments To Reflect Advisory Nature of 
Board of Regents.--(1) Section 2112(b) of such title is amended 
by striking out ``, upon recommendation of the Board of 
Regents,''.
    (2) Section 2113 of such title is amended--
            (A) in subsection (a)--
                    (i) by striking out ``a Board of Regents 
                (hereinafter in this chapter referred to as the 
                `Board')'' in the first sentence and inserting 
                in lieu thereof ``the Secretary of Defense''; 
                and
                    (ii) by inserting after the first sentence 
                the following new sentence: ``To assist the 
                Secretary in an advisory capacity, there is a 
                Board of Regents for the University.'';
            (B) in subsection (d), by striking out ``Board'' 
        the first place it appears and inserting in lieu 
        thereof ``Secretary'';
            (C) in subsection (e), by striking out ``of 
        Defense'';
            (D) in subsection (f)(1), by striking out ``of 
        Defense'';
            (E) in subsection (g)--
                    (i) by striking out ``Board is authorized 
                to'' in the first sentence and inserting in 
                lieu thereof ``Secretary may'';
                    (ii) by striking out ``Board is also 
                authorized to'' in the third sentence and 
                inserting in lieu thereof ``Secretary may''; 
                and
                    (iii) by striking out ``Board may also, 
                subject to the approval of the Secretary of 
                Defense,'' in the fifth sentence and inserting 
                in lieu thereof ``Secretary may''; and
            (F) by striking out ``Board'' each place it appears 
        in subsections (f), (i), and (j) and inserting in lieu 
        thereof ``Secretary''.
    (3) Section 2114(e)(1) of such title is amended by striking 
out ``Board, upon approval of the Secretary of Defense,'' and 
inserting in lieu thereof ``Secretary of Defense''.
    (c) Clerical Amendments.--(1) The heading of section 2113 
of such title is amended to read as follows:

``Sec. 2113. Administration of University''.

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 104 of such title is 
amended to read as follows:

``2113. Administration of University.''.

SEC. 1073. FUNDING FOR ADULT EDUCATION PROGRAMS FOR MILITARY PERSONNEL 
                    AND DEPENDENTS OUTSIDE THE UNITED STATES.

    Of amounts appropriated pursuant to section 301, $600,000 
shall be available to carry out adult education programs, 
consistent with the Adult Education Act (20 U.S.C. 1201 et 
seq.), for the following:
            (1) Members of the Armed Forces who are serving in 
        locations--
                    (A) that are outside the United States; and
                    (B) for which amounts are not required to 
                be allotted under section 313(b) of such Act 
                (20 U.S.C. 1201b(b)).
            (2) The dependents of such members.

SEC. 1074. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
                    DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND 
                    DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for 
Fiscal Year 1996.--(1) Of the amounts authorized to be 
appropriated in section 301(5)--
            (A) $30,000,000 shall be available for providing 
        educational agencies assistance (as defined in 
        paragraph (4)(A)) to local educational agencies; and
            (B) $5,000,000 shall be available for making 
        educational agencies payments (as defined in paragraph 
        (4)(B)) to local educational agencies.
    (2) Not later than June 30, 1996, the Secretary of Defense 
shall--
            (A) notify each local educational agency that is 
        eligible for educational agencies assistance for fiscal 
        year 1996 of that agency's eligibility for such 
        assistance and the amount of such assistance for which 
        that agency is eligible; and
            (B) notify each local educational agency that is 
        eligible for an educational agencies payment for fiscal 
        year 1996 of that agency's eligibility for such payment 
        and the amount of the payment for which that agency is 
        eligible.
    (3) The Secretary of Defense shall disburse funds made 
available under subparagraphs (A) and (B) of paragraph (1) not 
later than 30 days after the date on which notification to the 
eligible local educational agencies is provided pursuant to 
paragraph (2).
    (4) In this section:
            (A) The term ``educational agencies assistance'' 
        means assistance authorized under subsection (b) of 
        section 386 of the National Defense Authorization Act 
        for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 
        note).
            (B) The term ``educational agencies payments'' 
        means payments authorized under subsection (d) of that 
        section, as amended by subsection (d).
    (b) Special Rule for 1994 Payments.--The Secretary of 
Education shall not consider any payment to a local educational 
agency by the Department of Defense, that is available to such 
agency for current expenditures and used for capital expenses, 
as funds available to such agency for purposes of making a 
determination for fiscal year 1994 under section 3(d)(2)(B)(i) 
of the Act of September 30, 1950 (Public Law 874, 81st 
Congress) (as such Act was in effect on September 30, 1994).
    (c) Reduction in Impact Threshold.--Subsection (c)(1) of 
section 386 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) is 
amended--
            (1) by striking out ``30 percent'' and inserting in 
        lieu thereof ``20 percent''; and
            (2) by striking out ``counted under subsection (a) 
        or (b) of section 3 of the Act of September 30, 1950 
        (Public Law 874, Eighty-first Congress; 20 U.S.C. 
        238)'' and inserting in lieu thereof ``counted under 
        section 8003(a) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7703(a))''.
    (d) Adjustments Related to Base Closures and 
Realignments.--Subsection (d) of section 386 of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
484; 28 U.S.C. 238 note) is amended to read as follows:
    ``(d) Adjustments Related to Base Closures and 
Realignments.--To assist communities in making adjustments 
resulting from reductions in the size of the Armed Forces, the 
Secretary of Defense shall, in consultation with the Secretary 
of Education, make payments to local educational agencies that, 
during the period between the end of the school year preceding 
the fiscal year for which the payments are authorized and the 
beginning of the school year immediately preceding that school 
year, had an overall reduction of not less than 20 percent in 
the number of military dependent students as a result of the 
closure or realignment of military installations.''.
    (e) Extension of Reporting Requirement.--Subsection (e)(1) 
of section 386 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) is 
amended by striking out ``and 1995'' and inserting in lieu 
thereof ``1995, and 1996''.
    (f) Payments for Eligible Federally Connected Children.--
Subsection (f) of section 8003 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703) is amended--
            (1) in paragraph (2)--
                    (A) in the matter preceding clause (i) of 
                subparagraph (A), by striking ``only if such 
                agency'' and inserting ``if such agency is 
                eligible for a supplementary payment in 
                accordance with subparagraph (B) or such 
                agency''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(D) A local educational agency shall only 
                be eligible to receive additional assistance 
                under this subsection if the Secretary 
                determines that--
                            ``(i) such agency is exercising due 
                        diligence in availing itself of State 
                        and other financial assistance; and
                            ``(ii) the eligibility of such 
                        agency under State law for State aid 
                        with respect to the free public 
                        education of children described in 
                        subsection (a)(1) and the amount of 
                        such aid are determined on a basis no 
                        less favorable to such agency than the 
                        basis used in determining the 
                        eligibility of local educational 
                        agencies for State aid, and the amount 
                        of such aid, with respect to the free 
                        public education of other children in 
                        the State.''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause 
                        (i), by inserting ``(other than any 
                        amount received under paragraph 
                        (2)(B))'' after ``subsection'';
                            (ii) in subclause (I) of clause 
                        (i), by striking ``or the average per-
                        pupil expenditure of all the States'';
                            (iii) by amending clause (ii) to 
                        read as follows:
                            ``(ii) The Secretary shall next 
                        multiply the amount determined under 
                        clause (i) by the total number of 
                        students in average daily attendance at 
                        the schools of the local educational 
                        agency.''; and
                            (iv) by amending clause (iii) to 
                        read as follows:
                            ``(iii) The Secretary shall next 
                        subtract from the amount determined 
                        under clause (ii) all funds available 
                        to the local educational agency for 
                        current expenditures, but shall not so 
                        subtract funds provided--
                                    ``(I) under this Act; or
                                    ``(II) by any department or 
                                agency of the Federal 
                                Government (other than the 
                                Department) that are used for 
                                capital expenses.''; and
                    (B) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Special rule.--With respect to 
                payments under this subsection for a fiscal 
                year for a local educational agency described 
                in clause (ii) or (iii) of paragraph (2)(A), 
                the maximum amount of payments under this 
                subsection shall be equal to--
                            ``(i) the product of--
                                    ``(I) the average per-pupil 
                                expenditure in all States 
                                multiplied by 0.7, except that 
                                such amount may not exceed 125 
                                percent of the average per-
                                pupil expenditure in all local 
                                educational agencies in the 
                                State; multiplied by
                                    ``(II) the number of 
                                students described in 
                                subparagraph (A) or (B) of 
                                subsection (a)(1) for such 
                                agency; minus
                            ``(ii) the amount of payments such 
                        agency receives under subsections (b) 
                        and (d) for such year.''.
    (g) Current Year Data.--Paragraph (4) of section 8003(f) of 
such Act (20 U.S.C. 7703(f)) is amended to read as follows:
            ``(4) Current year data.--For purposes of providing 
        assistance under this subsection the Secretary--
                    ``(A) shall use student and revenue data 
                from the fiscal year for which the local 
                educational agency is applying for assistance 
                under this subsection; and
                    ``(B) shall derive the per pupil 
                expenditure amount for such year for the local 
                educational agency's comparable school 
                districts by increasing or decreasing the per 
                pupil expenditure data for the second fiscal 
                year preceding the fiscal year for which the 
                determination is made by the same percentage 
                increase or decrease reflected between the per 
                pupil expenditure data for the fourth fiscal 
                year preceding the fiscal year for which the 
                determination is made and the per pupil 
                expenditure data for such second year.''.
    (h) Technical Amendments To Correct References to Repealed 
Law.--Section 386 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) is 
amended--
            (1) in subsection (e)(2)--
                    (A) in subparagraph (C), by inserting after 
                ``et seq.),'' the following: ``title VIII of 
                the Elementary and Secondary Education Act of 
                1965 (20 U.S.C. 7701 et seq.),''; and
                    (B) in subparagraph (D)(iii), by striking 
                out ``under subsections (a) and (b) of section 
                3 of such Act (20 U.S.C. 238)''; and
            (2) in subsection (h)--
                    (A) in paragraph (1), by striking out 
                ``section 14101 of the Elementary and Secondary 
                Education Act of 1965'' and inserting in lieu 
                thereof ``section 8013(9) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 
                7713(9))''; and
                    (B) by striking out paragraph (3) and 
                inserting in lieu thereof the following new 
                paragraph:
            ``(3) The term `State' means each of the 50 States 
        and the District of Columbia.''.

SEC. 1075. SHARING OF PERSONNEL OF DEPARTMENT OF DEFENSE DOMESTIC 
                    DEPENDENT SCHOOLS AND DEFENSE DEPENDENTS' EDUCATION 
                    SYSTEM.

    Section 2164(e) of title 10, United States Code, is amended 
by adding at the end the following:
    ``(4)(A) The Secretary may, without regard to the 
provisions of any law relating to the number, classification, 
or compensation of employees--
            ``(i) transfer employees from schools established 
        under this section to schools in the defense 
        dependents' education system in order to provide the 
        services referred to in subparagraph (B) to such 
        system; and
            ``(ii) transfer employees from such system to 
        schools established under this section in order to 
        provide such services to those schools.
    ``(B) The services referred to in subparagraph (A) are the 
following:
            ``(i) Administrative services.
            ``(ii) Logistical services.
            ``(iii) Personnel services.
            ``(iv) Such other services as the Secretary 
        considers appropriate.
    ``(C) Transfers under this paragraph shall extend for such 
periods as the Secretary considers appropriate. The Secretary 
shall provide appropriate compensation for employees so 
transferred.
    ``(D) The Secretary may provide that the transfer of an 
employee under this paragraph occur without reimbursement of 
the school or system concerned.
    ``(E) In this paragraph, the term `defense dependents' 
education system' means the program established and operated 
under section 1402(a) of the Defense Dependents' Education Act 
of 1978 (20 U.S.C. 921(a)).''.

SEC. 1076. INCREASE IN RESERVE COMPONENT MONTGOMERY GI BILL EDUCATIONAL 
                    ASSISTANCE ALLOWANCE WITH RESPECT TO SKILLS OR 
                    SPECIALTIES FOR WHICH THERE IS A CRITICAL SHORTAGE 
                    OF PERSONNEL.

    Section 16131 of title 10, United States Code, is amended 
by adding at the end the following new subsection:
    ``(j)(1) In the case of a person who has a skill or 
specialty designated by the Secretary concerned as a skill or 
specialty in which there is a critical shortage of personnel or 
for which it is difficult to recruit or, in the case of 
critical units, retain personnel, the Secretary concerned may 
increase the rate of the educational assistance allowance 
applicable to that person to such rate in excess of the rate 
prescribed under subparagraphs (A) through (D) of subsection 
(b)(1) as the Secretary of Defense considers appropriate, but 
the amount of any such increase may not exceed $350 per month.
    ``(2) In the case of a person who has a skill or specialty 
designated by the Secretary concerned as a skill or specialty 
in which there is a critical shortage of personnel or for which 
it is difficult to recruit or, in the case of critical units, 
retain personnel, who is eligible for educational benefits 
under chapter 30 (other than section 3012) of title 38 and who 
meets the eligibility criteria specified in subparagraphs (A) 
and (B) of section 16132(a)(1) of this title, the Secretary 
concerned may increase the rate of the educational assistance 
allowance applicable to that person to such rate in excess of 
the rate prescribed under section 3015 of title 38 as the 
Secretary of Defense considers appropriate, but the amount of 
any such increase may not exceed $350 per month.
    ``(3) The authority provided by paragraphs (1) and (2) 
shall be exercised by the Secretaries concerned under 
regulations prescribed by the Secretary of Defense.''.

SEC. 1077. DATE FOR ANNUAL REPORT ON RESERVE COMPONENT MONTGOMERY GI 
                    BILL EDUCATIONAL ASSISTANCE PROGRAM.

    Section 16137 of title 10, United States Code, is amended 
by striking out ``December 15 of each year'' and inserting in 
lieu thereof ``March 1 of each year''.

SEC. 1078. SCOPE OF EDUCATION PROGRAMS OF COMMUNITY COLLEGE OF THE AIR 
                    FORCE.

    (a) Limitation to Members of the Air Force.--Section 
9315(a)(1) of title 10, United States Code, is amended by 
striking out ``for enlisted members of the armed forces'' and 
inserting in lieu thereof ``for enlisted members of the Air 
Force''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall apply with respect to enrollments in the Community 
College of the Air Force after March 31, 1996.

SEC. 1079. AMENDMENTS TO EDUCATION LOAN REPAYMENT PROGRAMS.

    (a) General Education Loan Repayment Program.--Section 
2171(a)(1) of title 10, United States Code, is amended--
            (1) by striking out ``or'' at the end of 
        subparagraph (A);
            (2) by redesignating subparagraph (B) as 
        subparagraph (C); and
            (3) by inserting after subparagraph (A) the 
        following new subparagraph (B):
            ``(B) any loan made under part D of such title (the 
        William D. Ford Federal Direct Loan Program, 20 U.S.C. 
        1087a et seq.); or''.
    (b) Education Loan Repayment Program for Enlisted Members 
of Selected Reserve With Critical Specialties.--Section 
16301(a)(1) of such title is amended--
            (1) by striking out ``or'' at the end of 
        subparagraph (A);
            (2) by redesignating subparagraph (B) as 
        subparagraph (C); and
            (3) by inserting after subparagraph (A) the 
        following new subparagraph (B):
            ``(B) any loan made under part D of such title (the 
        William D. Ford Federal Direct Loan Program, 20 U.S.C. 
        1087a et seq.); or''.
    (c) Education Loan Repayment Program for Health Professions 
Officers Serving in Selected Reserve With Wartime Critical 
Medical Skill Shortages.--Section 16302(a) of such title is 
amended--
            (1) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5) respectively; and
            (2) by inserting after paragraph (1) the following 
        new paragraph (2):
            ``(2) any loan made under part D of such title (the 
        William D. Ford Federal Direct Loan Program, 20 U.S.C. 
        1087a et seq.); or''.

                       Subtitle H--Other Matters

SEC. 1081. NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE 
                    REINVESTMENT, AND DEFENSE CONVERSION PROGRAMS.

    (a) National Security Objectives for National Technology 
and Industrial Base.--(1) Section 2501 of title 10, United 
States Code, is amended--
            (A) in subsection (a)--
                    (i) by striking out ``Defense Policy'' in 
                the subsection heading and inserting in lieu 
                thereof ``National Security''; and
                    (ii) by striking out paragraph (5);
            (B) by striking out subsection (b); and
            (C) by redesignating subsection (c) as subsection 
        (b).
    (2) The heading of such section is amended to read as 
follows:

``Sec. 2501. National security objectives concerning national 
                    technology and industrial base''.

    (b) National Defense Technology and Industrial Base 
Council.--Section 2502(c) of such title is amended--
            (1) in paragraph (1), by striking out subparagraph 
        (B) and inserting in lieu thereof the following new 
        subparagraph:
                    ``(B) programs for achieving such national 
                security objectives; and'';
            (2) by striking out paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph 
        (2).
    (c) Modification of Defense Dual-Use Critical Technology 
Partnerships Program.--Section 2511 of such title is amended to 
read as follows:

``Sec. 2511. Defense dual-use critical technology program

    ``(a) Establishment of Program.--The Secretary of Defense 
shall conduct a program to further the national security 
objectives set forth in section 2501(a) of this title by 
encouraging and providing for research, development, and 
application of dual-use critical technologies. The Secretary 
may make grants, enter into contracts, or enter into 
cooperative agreements and other transactions pursuant to 
section 2371 of this title in furtherance of the program. The 
Secretary shall identify projects to be conducted as part of 
the program.
    ``(b) Assistance Authorized.--The Secretary of Defense may 
provide technical and other assistance to facilitate the 
achievement of the purposes of projects conducted under the 
program. In providing such assistance, the Secretary shall make 
available, as appropriate for the work to be performed, 
equipment and facilities of Department of Defense laboratories 
(including the scientists and engineers at those laboratories) 
for purposes of projects selected by the Secretary.
    ``(c) Financial Commitment of Non-Federal Government 
Participants.--(1) The total amount of funds provided by the 
Federal Government for a project conducted under the program 
may not exceed 50 percent of the total cost of the project. 
However, the Secretary of Defense may agree to a project in 
which the total amount of funds provided by the Federal 
Government exceeds 50 percent if the Secretary determines the 
project is particularly meritorious, but the project would not 
otherwise have sufficient non-Federal funding or in-kind 
contributions.
    ``(2) The Secretary may prescribe regulations to provide 
for consideration of in-kind contributions by non-Federal 
Government participants in a project conducted under the 
program for the purpose of calculating the share of the project 
costs that has been or is being undertaken by such 
participants. In such regulations, the Secretary may authorize 
a participant that is a small business concern to use funds 
received under the Small Business Innovation Research Program 
or the Small Business Technology Transfer Program to help pay 
the costs of project activities. Any such funds so used may be 
considered in calculating the amount of the financial 
commitment undertaken by the non-Federal Government 
participants unless the Secretary determines that the small 
business concern has not made a significant equity percentage 
contribution in the project from non-Federal sources.
    ``(3) The Secretary shall consider a project proposal 
submitted by a small business concern without regard to the 
ability of the small business concern to immediately meet its 
share of the anticipated project costs. Upon the selection of a 
project proposal submitted by a small business concern, the 
small business concern shall have a period of not less than 120 
days in which to arrange to meet its financial commitment 
requirements under the project from sources other than a person 
of a foreign country. If the Secretary determines upon the 
expiration of that period that the small business concern will 
be unable to meet its share of the anticipated project costs, 
the Secretary shall revoke the selection of the project 
proposal submitted by the small business concern.
    ``(d) Selection Process.--Competitive procedures shall be 
used in the conduct of the program.
    ``(e) Selection Criteria.--The criteria for the selection 
of projects under the program shall include the following:
            ``(1) The extent to which the proposed project 
        advances and enhances the national security objectives 
        set forth in section 2501(a) of this title.
            ``(2) The technical excellence of the proposed 
        project.
            ``(3) The qualifications of the personnel proposed 
        to participate in the research activities of the 
        proposed project.
            ``(4) An assessment of timely private sector 
        investment in activities to achieve the goals and 
        objectives of the proposed project other than through 
        the project.
            ``(5) The potential effectiveness of the project in 
        the further development and application of each 
        technology proposed to be developed by the project for 
        the national technology and industrial base.
            ``(6) The extent of the financial commitment of 
        eligible firms to the proposed project.
            ``(7) The extent to which the project does not 
        unnecessarily duplicate projects undertaken by other 
        agencies.
    ``(f) Regulations.--The Secretary of Defense shall 
prescribe regulations for the purposes of this section.''.
    (d) Federal Defense Laboratory Diversification Program.--
Section 2519 of such title is amended--
            (1) in subsection (b), by striking out ``referred 
        to in section 2511(b) of this title''; and
            (2) in subsection (f), by striking out ``section 
        2511(f)'' and inserting in lieu thereof ``section 
        2511(e)''.
    (e) Manufacturing Science and Technology Program.--
Subsection (b) of section 2525 of such title is amended to read 
as follows:
    ``(b) Purpose of Program.--The Secretary of Defense shall 
use the program--
            ``(1) to provide centralized guidance and direction 
        (including goals, milestones, and priorities) to the 
        military departments and the Defense Agencies on all 
        matters relating to manufacturing technology;
            ``(2) to direct the development and implementation 
        of Department of Defense plans, programs, projects, 
        activities, and policies that promote the development 
        and application of advanced technologies to 
        manufacturing processes, tools, and equipment;
            ``(3) to improve the manufacturing quality, 
        productivity, technology, and practices of businesses 
        and workers providing goods and services to the 
        Department of Defense;
            ``(4) to promote dual-use manufacturing processes;
            ``(5) to disseminate information concerning 
        improved manufacturing improvement concepts, including 
        information on such matters as best manufacturing 
        practices, product data exchange specifications, 
        computer-aided acquisition and logistics support, and 
        rapid acquisition of manufactured parts;
            ``(6) to sustain and enhance the skills and 
        capabilities of the manufacturing work force;
            ``(7) to promote high-performance work systems 
        (with development and dissemination of production 
        technologies that build upon the skills and 
        capabilities of the work force), high levels of worker 
        education and training; and
            ``(8) to ensure appropriate coordination between 
        the manufacturing technology programs and industrial 
        preparedness programs of the Department of Defense and 
        similar programs undertaken by other departments and 
        agencies of the Federal Government or by the private 
        sector.''.
    (f) Repeal of Various Assistance Programs.--Sections 2512, 
2513, 2520, 2521, 2522, 2523, and 2524 of such title are 
repealed.
    (g) Repeal of Military-Civilian Integration and Technology 
Transfer Advisory Board.--Section 2516 of such title is 
repealed.
    (h) Repeal of Obsolete Definitions.--Section 2491 of such 
title is amended--
            (1) by striking out paragraphs (11) and (12); and
            (2) by redesignating paragraphs (13), (14), (15), 
        and (16) as paragraphs (11) (12), (13), and (14), 
        respectively.
    (i) Clerical Amendments.--(1) The table of sections at the 
beginning of subchapter II of chapter 148 of such title is 
amended by striking out the item relating to section 2501 and 
inserting in lieu thereof the following new item:

``2501. National security objectives concerning national technology and 
          industrial base.''.

    (2) The table of sections at the beginning of subchapter 
III of such chapter is amended--
            (A) by striking out the item relating to section 
        2511 and inserting in lieu thereof the following new 
        item:

``2511. Defense dual-use critical technology program.''; and

            (B) by striking out the items relating to sections 
        2512, 2513, 2516, and 2520.
    (3) The table of sections at the beginning of subchapter IV 
of such chapter is amended by striking out the items relating 
to sections 2521, 2522, 2523, and 2524.

SEC. 1082. AMMUNITION INDUSTRIAL BASE.

    (a) Review of Ammunition Procurement Programs.--The 
Secretary of Defense shall carry out a review of the programs 
of the Department of Defense for the procurement of ammunition. 
The review shall include the Department of Defense management 
of ammunition procurement programs, including the procedures of 
the Department for the planning for, budgeting for, 
administration, and carrying out of such programs. The 
Secretary shall begin the review not later than 30 days after 
the date of the enactment of this Act.
    (b) Matters To Be Reviewed.--The review under subsection 
(a) shall include an assessment of the following:
            (1) The practicability and desirability of (A) 
        continuing to use centralized procurement practices 
        (through a single executive agent) for the procurement 
        of ammunition required by the Armed Forces, and (B) 
        using such centralized procurement practices for the 
        procurement of all such ammunition.
            (2) The capability of the ammunition production 
        facilities of the Government to meet the requirements 
        of the Armed Forces for procurement of ammunition.
            (3) The practicability and desirability of 
        converting those ammunition production facilities to 
        ownership or operation by private sector entities.
            (4) The practicability and desirability of 
        integrating the budget planning for the procurement of 
        ammunition among the Armed Forces.
            (5) The practicability and desirability of 
        establishing an advocate within the Department of 
        Defense for matters relating to the ammunition 
        industrial base, with such an advocate to be 
        responsible for--
                    (A) establishing the quantity and price of 
                ammunition procured by the Armed Forces; and
                    (B) establishing and implementing policy to 
                ensure the continuing capability of the 
                ammunition industrial base in the United States 
                to meet the requirements of the Armed Forces.
            (6) The practicability and desirability of 
        providing information on the ammunition procurement 
        practices of the Armed Forces to Congress through a 
        single source.
    (c) Report.--Not later than April 1, 1996, the Secretary 
shall submit to the congressional defense committees a report 
on the review carried out under subsection (a). The report 
shall include the following:
            (1) The results of the review.
            (2) A discussion of the methodologies used in 
        carrying out the review.
            (3) An assessment of various methods of ensuring 
        the continuing capability of the ammunition industrial 
        base of the United States to meet the requirements of 
        the Armed Forces.
            (4) Recommendations of means (including 
        legislation) of implementing those methods in order to 
        ensure such continuing capability.

SEC. 1083. POLICY CONCERNING EXCESS DEFENSE INDUSTRIAL CAPACITY.

    No funds appropriated pursuant to an authorization of 
appropriations in this Act may be used for capital investment 
in, or the development and construction of, a Government-owned, 
Government-operated defense industrial facility unless the 
Secretary of Defense certifies to the Congress that no similar 
capability or minimally used capacity exists in any other 
Government-owned, Government-operated defense industrial 
facility.

SEC. 1084. SENSE OF CONGRESS CONCERNING ACCESS TO SECONDARY SCHOOL 
                    STUDENT INFORMATION FOR RECRUITING PURPOSES.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the States (with respect to public schools) and 
        entities operating private secondary schools should not 
        have a policy of denying, or otherwise effectively 
        preventing, the Secretary of Defense from obtaining for 
        military recruiting purposes--
                    (A) entry to any secondary school or access 
                to students at any secondary school equal to 
                that of other employers; or
                    (B) access to directory information 
                pertaining to students at secondary schools 
                equal to that of other employers (other than in 
                a case in which an objection has been raised as 
                described in paragraph (2)); and
            (2) any State, and any entity operating a private 
        secondary school, that releases directory information 
        secondary school students should--
                    (A) give public notice of the categories of 
                such information to be released; and
                    (B) allow a reasonable period after such 
                notice has been given for a student or (in the 
                case of an individual younger than 18 years of 
                age) a parent to inform the school that any or 
                all of such information should not be released 
                without obtaining prior consent from the 
                student or the parent, as the case may be.
    (b) Report on DOD Procedures.--Not later than March 1, 
1996, the Secretary of Defense shall submit to Congress a 
report on Department of Defense procedures for determining if 
and when a State or an entity operating a private secondary 
school has denied or prevented access to students or 
information as described in subsection (a)(1).
    (c) Definitions.--For purposes of this section:
            (1) The term ``directory information'' means, with 
        respect to a student, the student's name, address, 
        telephone listing, date and place of birth, level of 
        education, degrees received, and (if available) the 
        most recent previous educational program enrolled in by 
        the student.
            (2) The term ``student'' means an individual 
        enrolled in any program of education who is 17 years of 
        age or older.

SEC. 1085. DISCLOSURE OF INFORMATION CONCERNING UNACCOUNTED FOR UNITED 
                    STATES PERSONNEL FROM THE KOREAN CONFLICT, THE 
                    VIETNAM ERA, AND THE COLD WAR.

    Section 1082 of the National Defense Authorization Act for 
Fiscal Years 1992 and 1993 (Public Law 102-190; 50 U.S.C. 401 
note) is amended--
            (1) in subsection (b)(3)(A), by striking out 
        ``cannot be located after a reasonable effort.'' and 
        inserting in lieu thereof ``cannot be located by the 
        Secretary of Defense--
                    ``(i) in the case of a person missing from 
                the Vietnam era, after a reasonable effort; and
                    ``(ii) in the case of a person missing from 
                the Korean Conflict or Cold War, after a period 
                of 90 days from the date on which any record or 
                other information referred to in paragraph (2) 
                is received by the Department of Defense for 
                disclosure review from the Archivist of the 
                United States, the Library of Congress, or the 
                Joint United States-Russian Commission on POW/
                MIAs.''; and
            (2) in subsection (c)(1), by striking out ``not 
        later than September 30, 1995'' and inserting in lieu 
        thereof ``not later than January 2, 1996''.

SEC. 1086. OPERATIONAL SUPPORT AIRLIFT AIRCRAFT FLEET.

    (a) Submittal of JCS Report on Aircraft.--Not later than 
February 1, 1996, the Secretary of Defense shall submit to 
Congress the report that, as of the date of the enactment of 
this Act, is in preparation by the Chairman of the Joint Chiefs 
of Staff on operational support airlift aircraft.
    (b) Content of Report.--(1) The report referred to in 
subsection (a) shall contain findings and recommendations on 
the following:
            (A) Requirements for the modernization and safety 
        of the operational support airlift aircraft fleet.
            (B) The disposition of aircraft that would be 
        excess to that fleet upon fulfillment of the 
        requirements referred to in subparagraph (A).
            (C) Plans and requirements for the standardization 
        of the fleet, including plans and requirements for the 
        provision of a single manager for all logistical 
        support and operational requirements.
            (D) Central scheduling of all operational support 
        airlift aircraft.
            (E) Needs of the Department for helicopter support 
        in the National Capital Region, including the 
        acceptable uses of that support.
    (2) In preparing the report, the Chairman of the Joint 
Chiefs of Staff shall take into account the recommendation of 
the Commission on Roles and Missions of the Armed Forces to 
reduce the size of the operational support airlift aircraft 
fleet.
    (c) Regulations.--(1) Upon completion of the report 
referred to in subsection (a), the Secretary shall prescribe 
regulations, consistent with the findings and recommendations 
set forth in the report, for the operation, maintenance, 
disposition, and use of operational support airlift aircraft.
    (2) The regulations shall, to the maximum extent 
practicable, provide for, and encourage the use of, commercial 
airlines in lieu of the use of such aircraft.
    (3) The regulations shall apply uniformly throughout the 
Department.
    (4) The regulations shall not require exclusive use of such 
aircraft for any particular class of government personnel.
    (d) Reductions in Flying Hours.--(1) The Secretary shall 
ensure that the number of hours flown during fiscal year 1996 
by operational support airlift aircraft does not exceed the 
number equal to 85 percent of the number of hours flown during 
fiscal year 1995 by operational support airlift aircraft.
    (2) The Secretary should ensure that the number of hours 
flown in the National Capital Region during fiscal year 1996 by 
helicopters of the operational support airlift aircraft fleet 
does not exceed the number equal to 85 percent of the number of 
hours flown in the National Capital Region during fiscal year 
1995 by helicopters of the operational support airlift aircraft 
fleet.
    (e) Restriction on Availability of Funds.--Of the funds 
appropriated pursuant to section 301 for the operation and use 
of operational support airlift aircraft, not more than 50 
percent is available for obligation until the Secretary submits 
to Congress the report referred to in subsection (a).
    (f) Definitions.--In this section:
            (1) The term ``operational support airlift 
        aircraft'' means aircraft of the Department of Defense 
        designated within the Department as operational support 
        airlift aircraft.
            (2) The term ``National Capital Region'' has the 
        meaning given such term in section 2674(f)(2) of title 
        10, United States Code.

SEC. 1087. CIVIL RESERVE AIR FLEET.

    Section 9512 of title 10, United States Code, is amended by 
striking out ``full Civil Reserve Air Fleet'' in subsections 
(b)(2) and (e) and inserting in lieu thereof ``Civil Reserve 
Air Fleet''.

SEC. 1088. DAMAGE OR LOSS TO PERSONAL PROPERTY DUE TO EMERGENCY 
                    EVACUATION OR EXTRAORDINARY CIRCUMSTANCES.

    (a) Settlement of Claims of Personnel.--Section 3721(b)(1) 
of title 31, United States Code, is amended by inserting after 
the first sentence the following: ``If, however, the claim 
arose from an emergency evacuation or from extraordinary 
circumstances, the amount settled and paid under the authority 
of the preceding sentence may exceed $40,000, but may not 
exceed $100,000.''.
    (b) Applicability.--The amendment made by subsection (a) 
shall apply to claims arising before, on, or after the date of 
the enactment of this Act.
    (c) Representments of Previously Presented Claims.--(1) A 
claim under subsection (b) of section 3721 of title 31, United 
States Code, that was settled under such section before the 
date of the enactment of this Act may be represented under such 
section, as amended by subsection (a), to the head of the 
agency concerned to recover the amount equal to the difference 
between the actual amount of the damage or loss and the amount 
settled and paid under the authority of such section before the 
date of the enactment of this Act, except that--
            (A) the claim shall be represented in writing 
        within two years after the date of the enactment of 
        this Act;
            (B) a determination of the actual amount of the 
        damage or loss shall have been made by the head of the 
        agency concerned pursuant to settlement of the claim 
        under the authority of such section before the date of 
        the enactment of this Act;
            (C) the claimant shall have proof of the 
        determination referred to in subparagraph (B); and
            (D) the total of all amounts paid in settlement of 
        the claim under the authority of such section may not 
        exceed $100,000.
    (2) Subsection (k) of such section shall not apply to bar 
representment of a claim described in paragraph (1), but shall 
apply to such a claim that is represented and settled under 
that section after the date of the enactment of this Act.

SEC. 1089. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION ACTIONS AGAINST 
                    DECEASED MEMBERS.

    Section 3711 of title 31, United States Code, is amended by 
adding at the end the following:
    ``(g)(1) The Secretary of Defense may suspend or terminate 
an action by the Secretary or by the Secretary of a military 
department under subsection (a) to collect a claim against the 
estate of a person who died while serving on active duty as a 
member of the Army, Navy, Air Force, or Marine Corps if the 
Secretary determines that, under the circumstances applicable 
with respect to the deceased person, it is appropriate to do 
so.
    ``(2) In this subsection, the term `active duty' has the 
meaning given that term in section 101 of title 10.''.

SEC. 1090. CHECK CASHING AND EXCHANGE TRANSACTIONS FOR DEPENDENTS OF 
                    UNITED STATES GOVERNMENT PERSONNEL.

    (a) Authority To Carry Out Transactions.--Subsection (b) of 
section 3342 of title 31, United States Code, is amended--
            (1) by redesignating paragraphs (3), (4), and (5) 
        as paragraphs (4), (5), and (6), respectively; and
            (2) by inserting after paragraph (2) the following 
        new paragraph:
            ``(3) a dependent of personnel of the Government, 
        but only--
                    ``(A) at a United States installation at 
                which adequate banking facilities are not 
                available; and
                    ``(B) in the case of negotiation of 
                negotiable instruments, if the dependent's 
                sponsor authorizes, in writing, the 
                presentation of negotiable instruments to the 
                disbursing official for negotiation.''.
    (b) Pay Offset.--Subsection (c) of such section is 
amended--
            (1) by redesignating paragraph (3) as paragraph 
        (4); and
            (2) by inserting after paragraph (2) the following 
        new paragraph (3):
    ``(3) The amount of any deficiency resulting from cashing a 
check for a dependent under subsection (b)(3), including any 
charges assessed against the disbursing official by a financial 
institution for insufficient funds to pay the check, may be 
offset from the pay of the dependent's sponsor.''.
    (c) Definitions.--Such section is further amended by adding 
at the end the following:
    ``(e) Regulations prescribed under subsection (d) shall 
include regulations that define the terms `dependent' and 
`sponsor' for the purposes of this section. In the regulations, 
the term `dependent', with respect to a member of a uniformed 
service, shall have the meaning given that term in section 401 
of title 37.''.

SEC. 1091. DESIGNATION OF NATIONAL MARITIME CENTER.

    (a) Designation of National Maritime Center.--The NAUTICUS 
building, located at one Waterside Drive, Norfolk, Virginia, 
shall be known and designated as the ``National Maritime 
Center''.
    (b) Reference to National Maritime Center.--Any reference 
in a law, map, regulation, document, paper, or other record of 
the United States to the building referred to in subsection (a) 
shall be deemed to be a reference to the ``National Maritime 
Center''.

SEC. 1092. SENSE OF CONGRESS REGARDING HISTORIC PRESERVATION OF MIDWAY 
                    ISLANDS.

    (a) Findings.--Congress makes the following findings:
            (1) September 2, 1995, marks the 50th anniversary 
        of the United States victory over Japan in World War 
        II.
            (2) The Battle of Midway proved to be the turning 
        point in the war in the Pacific, as United States Navy 
        forces inflicted such severe losses on the Imperial 
        Japanese Navy during the battle that the Imperial 
        Japanese Navy never again took the offensive against 
        United States or allied forces.
            (3) During the Battle of Midway, an outnumbered 
        force of the United States Navy, consisting of 29 ships 
        and other units of the Armed Forces under the command 
        of Admiral Nimitz and Admiral Spruance, out-maneuvered 
        and out-fought 350 ships of the Imperial Japanese Navy.
            (4) It is in the public interest to erect a 
        memorial to the Battle of Midway that is suitable to 
        express the enduring gratitude of the American people 
        for victory in the battle and to inspire future 
        generations of Americans with the heroism and sacrifice 
        of the members of the Armed Forces who achieved that 
        victory.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Midway Islands and the surrounding seas 
        deserve to be memorialized;
            (2) the historic structures related to the Battle 
        of Midway should be maintained, in accordance with the 
        National Historic Preservation Act (16 U.S.C. 470-
        470t), and subject to the availability of 
        appropriations for that purpose.
            (3) appropriate access to the Midway Islands by 
        survivors of the Battle of Midway, their families, and 
        other visitors should be provided in a manner that 
        ensures the public health and safety on the Midway 
        Islands and the conservation of the natural resources 
        of those islands in accordance with existing Federal 
        law.

SEC. 1093. SENSE OF SENATE REGARDING FEDERAL SPENDING.

    It is the sense of the Senate that in pursuit of a balanced 
Federal budget, Congress should exercise fiscal restraint, 
particularly in authorizing spending not requested by the 
executive branch and in proposing new programs.

SEC. 1094. EXTENSION OF AUTHORITY FOR VESSEL WAR RISK INSURANCE.

    Section 1214 of the Merchant Marine Act, 1936 (46 App. 
U.S.C. 1294), is amended by striking ``June 30, 1995'' and 
inserting in lieu thereof ``June 30, 2000''.

               TITLE XI--UNIFORM CODE OF MILITARY JUSTICE

SEC. 1101. SHORT TITLE.

    This title may be cited as the ``Military Justice 
Amendments of 1995''.

SEC. 1102. REFERENCES TO UNIFORM CODE OF MILITARY JUSTICE.

    Except as otherwise expressly provided, whenever in this 
title an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of chapter 47 of title 10, United States Code (the 
Uniform Code of Military Justice).

                          Subtitle A--Offenses

SEC. 1111. REFUSAL TO TESTIFY BEFORE COURT-MARTIAL.

    Section 847(b) (article 47(b)) is amended--
            (1) in the first sentence, by inserting 
        ``indictment or'' after ``shall be tried on''; and
            (2) in the second sentence, by striking out ``shall 
        be'' and all that follows and inserting in lieu thereof 
        ``shall be fined or imprisoned, or both, at the court's 
        discretion.''.

SEC. 1112. FLIGHT FROM APPREHENSION.

    (a) In General.--Section 895 (article 95) is amended to 
read as follows:

``Sec. 895. Art. 95. Resistance, flight, breach of arrest, and escape

    ``Any person subject to this chapter who--
            ``(1) resists apprehension;
            ``(2) flees from apprehension;
            ``(3) breaks arrest; or
            ``(4) escapes from custody or confinement;
shall be punished as a court-martial may direct.''.
    (b) Clerical Amendment.--The item relating to section 895 
(article 95) in the table of sections at the beginning of 
subchapter X is amended to read as follows:

``895. Art. 95. Resistance, flight, breach of arrest, and escape.''.

SEC. 1113. CARNAL KNOWLEDGE.

    (a) Gender Neutrality.--Subsection (b) of section 920 
(article 120) is amended to read as follows:
    ``(b) Any person subject to this chapter who, under 
circumstances not amounting to rape, commits an act of sexual 
intercourse with a person--
            ``(1) who is not that person's spouse; and
            ``(2) who has not attained the age of sixteen 
        years;
is guilty of carnal knowledge and shall be punished as a court-
martial may direct.''.
    (b) Mistake of Fact.--Such section (article) is further 
amended by adding at the end the following new subsection:
    ``(d)(1) In a prosecution under subsection (b), it is an 
affirmative defense that--
            ``(A) the person with whom the accused committed 
        the act of sexual intercourse had at the time of the 
        alleged offense attained the age of twelve years; and
            ``(B) the accused reasonably believed that that 
        person had at the time of the alleged offense attained 
        the age of sixteen years.
    ``(2) The accused has the burden of proving a defense under 
paragraph (1) by a preponderance of the evidence.''.

                         Subtitle B--Sentences

SEC. 1121. EFFECTIVE DATE FOR FORFEITURES OF PAY AND ALLOWANCES AND 
                    REDUCTIONS IN GRADE BY SENTENCE OF COURT-MARTIAL.

    (a) Effective Date of Specified Punishments.--Subsection 
(a) of section 857 (article 57) is amended to read as follows:
    ``(a)(1) Any forfeiture of pay or allowances or reduction 
in grade that is included in a sentence of a court-martial 
takes effect on the earlier of--
            ``(A) the date that is 14 days after the date on 
        which the sentence is adjudged; or
            ``(B) the date on which the sentence is approved by 
        the convening authority.
    ``(2) On application by an accused, the convening authority 
may defer a forfeiture of pay or allowances or reduction in 
grade that would otherwise become effective under paragraph 
(1)(A) until the date on which the sentence is approved by the 
convening authority. Such a deferment may be rescinded at any 
time by the convening authority.
    ``(3) A forfeiture of pay or allowances shall be applicable 
to pay and allowances accruing on and after the date on which 
the sentence takes effect.
    ``(4) In this subsection, the term `convening authority', 
with respect to a sentence of a court-martial, means any person 
authorized to act on the sentence under section 860 of this 
title (article 60).''.
    (b) Applicability.--The amendment made by subsection (a) 
shall apply to a case in which a sentence is adjudged by a 
court-martial on or after the first day of the first month that 
begins at least 30 days after the date of the enactment of this 
Act.

SEC. 1122. REQUIRED FORFEITURE OF PAY AND ALLOWANCES DURING 
                    CONFINEMENT.

    (a) Effect of Punitive Separation or Confinement for More 
Than Six Months.--(1) Subchapter VIII is amended by inserting 
after section 858a (article 58a) the following:

``Sec. 858b. Art. 58b. Sentences: forfeiture of pay and allowances 
                    during confinement

    ``(a)(1) A court-martial sentence described in paragraph 
(2) shall result in the forfeiture of pay and allowances due 
that member during any period of confinement or parole. The 
forfeiture pursuant to this section shall take effect on the 
date determined under section 857(a) of this title (article 
57(a)) and may be deferred as provided in that section. The pay 
and allowances forfeited, in the case of a general court-
martial, shall be all pay and allowances due that member during 
such period and, in the case of a special court-martial, shall 
be two-thirds of all pay and allowances due that member during 
such period.
    ``(2) A sentence covered by this section is any sentence 
that includes--
            ``(A) confinement for more than six months or 
        death; or
            ``(B) confinement for six months or less and a 
        dishonorable or bad-conduct discharge or dismissal.
    ``(b) In a case involving an accused who has dependents, 
the convening authority or other person acting under section 
860 of this title (article 60) may waive any or all of the 
forfeitures of pay and allowances required by subsection (a) 
for a period not to exceed six months. Any amount of pay or 
allowances that, except for a waiver under this subsection, 
would be forfeited shall be paid, as the convening authority or 
other person taking action directs, to the dependents of the 
accused.
    ``(c) If the sentence of a member who forfeits pay and 
allowances under subsection (a) is set aside or disapproved or, 
as finally approved, does not provide for a punishment referred 
to in subsection (a)(2), the member shall be paid the pay and 
allowances which the member would have been paid, except for 
the forfeiture, for the period during which the forfeiture was 
in effect.''.
    (2) The table of sections at the beginning of subchapter 
VIII is amended by adding at the end the following new item:

``858b. 58b. Sentences: forfeiture of pay and allowances during 
          confinement.''.

    (b) Applicability.--The section (article) added by the 
amendment made by subsection (a)(1) shall apply to a case in 
which a sentence is adjudged by a court-martial on or after the 
first day of the first month that begins at least 30 days after 
the date of the enactment of this Act.
    (c) Conforming Amendment.--(1) Section 804 of title 37, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 15 of 
such title is amended by striking out the item relating to 
section 804.

SEC. 1123. DEFERMENT OF CONFINEMENT.

    (a) Deferment.--Subchapter VIII is amended--
            (1) by inserting after subsection (c) of section 
        857 (article 57) the following:

``Sec. 857a. Art. 57a. Deferment of sentences'';

            (2) by redesignating the succeeding two subsections 
        as subsection (a) and (b);
            (3) in subsection (b), as redesignated by paragraph 
        (2), by striking out ``postpone'' and inserting in lieu 
        thereof ``defer''; and
            (4) by inserting after subsection (b), as 
        redesignated by paragraph (2), the following:
    ``(c) In any case in which a court-martial sentences a 
person to confinement and the sentence to confinement has been 
ordered executed, but in which review of the case under section 
867(a)(2) of this title (article 67(a)(2)) is pending, the 
Secretary concerned may defer further service of the sentence 
to confinement while that review is pending.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such subchapter is amended by inserting after the 
item relating to section 857 (article 57) the following new 
item:

``857a. 57a. Deferment of sentences.''.

              Subtitle C--Pretrial and Post-Trial Actions

SEC. 1131. ARTICLE 32 INVESTIGATIONS.

    Section 832 (article 32) is amended--
            (1) by redesignating subsection (d) as subsection 
        (e); and
            (2) by inserting after subsection (c) the following 
        new subsection (d):
    ``(d) If evidence adduced in an investigation under this 
article indicates that the accused committed an uncharged 
offense, the investigating officer may investigate the subject 
matter of that offense without the accused having first been 
charged with the offense if the accused--
            ``(1) is present at the investigation;
            ``(2) is informed of the nature of each uncharged 
        offense investigated; and
            ``(3) is afforded the opportunities for 
        representation, cross-examination, and presentation 
        prescribed in subsection (b).''.

SEC. 1132. SUBMISSION OF MATTERS TO THE CONVENING AUTHORITY FOR 
                    CONSIDERATION.

    Section 860(b)(1) (article 60(b)(1)) is amended by 
inserting after the first sentence the following: ``Any such 
submission shall be in writing.''.

SEC. 1133. COMMITMENT OF ACCUSED TO TREATMENT FACILITY BY REASON OF 
                    LACK OF MENTAL CAPACITY OR MENTAL RESPONSIBILITY.

    (a) Applicable Procedures.--(1) Subchapter IX is amended by 
inserting after section 876a (article 76a) the following:

``Sec. 876b. Art. 76b. Lack of mental capacity or mental 
                    responsibility: commitment of accused for 
                    examination and treatment

    ``(a) Persons Incompetent To Stand Trial.--(1) In the case 
of a person determined under this chapter to be presently 
suffering from a mental disease or defect rendering the person 
mentally incompetent to the extent that the person is unable to 
understand the nature of the proceedings against that person or 
to conduct or cooperate intelligently in the defense of the 
case, the general court-martial convening authority for that 
person shall commit the person to the custody of the Attorney 
General.
    ``(2) The Attorney General shall take action in accordance 
with section 4241(d) of title 18.
    ``(3) If at the end of the period for hospitalization 
provided for in section 4241(d) of title 18, it is determined 
that the committed person's mental condition has not so 
improved as to permit the trial to proceed, action shall be 
taken in accordance with section 4246 of such title.
    ``(4)(A) When the director of a facility in which a person 
is hospitalized pursuant to paragraph (2) determines that the 
person has recovered to such an extent that the person is able 
to understand the nature of the proceedings against the person 
and to conduct or cooperate intelligently in the defense of the 
case, the director shall promptly transmit a notification of 
that determination to the Attorney General and to the general 
court-martial convening authority for the person. The director 
shall send a copy of the notification to the person's counsel.
    ``(B) Upon receipt of a notification, the general court-
martial convening authority shall promptly take custody of the 
person unless the person covered by the notification is no 
longer subject to this chapter. If the person is no longer 
subject to this chapter, the Attorney General shall take any 
action within the authority of the Attorney General that the 
Attorney General considers appropriate regarding the person.
    ``(C) The director of the facility may retain custody of 
the person for not more than 30 days after transmitting the 
notifications required by subparagraph (A).
    ``(5) In the application of section 4246 of title 18 to a 
case under this subsection, references to the court that 
ordered the commitment of a person, and to the clerk of such 
court, shall be deemed to refer to the general court-martial 
convening authority for that person. However, if the person is 
no longer subject to this chapter at a time relevant to the 
application of such section to the person, the United States 
district court for the district where the person is 
hospitalized or otherwise may be found shall be considered as 
the court that ordered the commitment of the person.
    ``(b) Persons Found Not Guilty by Reason of Lack of Mental 
Responsibility.--(1) If a person is found by a court-martial 
not guilty only by reason of lack of mental responsibility, the 
person shall be committed to a suitable facility until the 
person is eligible for release in accordance with this section.
    ``(2) The court-martial shall conduct a hearing on the 
mental condition in accordance with subsection (c) of section 
4243 of title 18. Subsections (b) and (d) of that section shall 
apply with respect to the hearing.
    ``(3) A report of the results of the hearing shall be made 
to the general court-martial convening authority for the 
person.
    ``(4) If the court-martial fails to find by the standard 
specified in subsection (d) of section 4243 of title 18 that 
the person's release would not create a substantial risk of 
bodily injury to another person or serious damage of property 
of another due to a present mental disease or defect--
            ``(A) the general court-martial convening authority 
        may commit the person to the custody of the Attorney 
        General; and
            ``(B) the Attorney General shall take action in 
        accordance with subsection (e) of section 4243 of title 
        18.
    ``(5) Subsections (f), (g), and (h) of section 4243 of 
title 18 shall apply in the case of a person hospitalized 
pursuant to paragraph (4)(B), except that the United States 
district court for the district where the person is 
hospitalized shall be considered as the court that ordered the 
person's commitment.
    ``(c) General Provisions.--(1) Except as otherwise provided 
in this subsection and subsection (d)(1), the provisions of 
section 4247 of title 18 apply in the administration of this 
section.
    ``(2) In the application of section 4247(d) of title 18 to 
hearings conducted by a court-martial under this section or by 
(or by order of) a general court-martial convening authority 
under this section, the reference in that section to section 
3006A of such title does not apply.
    ``(d) Applicability.--(1) The provisions of chapter 313 of 
title 18 referred to in this section apply according to the 
provisions of this section notwithstanding section 4247(j) of 
title 18.
    ``(2) If the status of a person as described in section 802 
of this title (article 2) terminates while the person is, 
pursuant to this section, in the custody of the Attorney 
General, hospitalized, or on conditional release under a 
prescribed regimen of medical, psychiatric, or psychological 
care or treatment, the provisions of this section establishing 
requirements and procedures regarding a person no longer 
subject to this chapter shall continue to apply to that person 
notwithstanding the change of status.''.
    (2) The table of sections at the beginning of such 
subchapter is amended by inserting after the item relating to 
section 876a (article 76a) the following:

``876b. 76b. Lack of mental capacity or mental responsibility: 
          commitment of accused for examination and treatment.''.

    (b) Conforming Amendment.--Section 802 (article 2) is 
amended by adding at the end the following new subsection:
    ``(e) The provisions of this section are subject to section 
876b(d)(2) of this title (article 76b(d)(2)).''.
    (c) Effective Date.--Section 876b of title 10, United 
States Code (article 76b of the Uniform Code of Military 
Justice), as added by subsection (a), shall take effect at the 
end of the six-month period beginning on the date of the 
enactment of this Act and shall apply with respect to charges 
referred to courts-martial after the end of that period.

                     Subtitle D--Appellate Matters

SEC. 1141. APPEALS BY THE UNITED STATES.

    (a) Appeals Relating to Disclosure of Classified 
Information.--Section 862(a)(1) (article 62(a)(1)) is amended 
to read as follows:
    ``(a)(1) In a trial by court-martial in which a military 
judge presides and in which a punitive discharge may be 
adjudged, the United States may appeal the following (other 
than an order or ruling that is, or that amounts to, a finding 
of not guilty with respect to the charge or specification):
            ``(A) An order or ruling of the military judge 
        which terminates the proceedings with respect to a 
        charge or specification.
            ``(B) An order or ruling which excludes evidence 
        that is substantial proof of a fact material in the 
        proceeding.
            ``(C) An order or ruling which directs the 
        disclosure of classified information.
            ``(D) An order or ruling which imposes sanctions 
        for nondisclosure of classified information.
            ``(E) A refusal of the military judge to issue a 
        protective order sought by the United States to prevent 
        the disclosure of classified information.
            ``(F) A refusal by the military judge to enforce an 
        order described in subparagraph (E) that has previously 
        been issued by appropriate authority.''.
    (b) Definitions.--Section 801 (article 1) is amended by 
inserting after paragraph (14) the following new paragraphs:
            ``(15) The term `classified information' means (A) 
        any information or material that has been determined by 
        an official of the United States pursuant to law, an 
        Executive order, or regulation to require protection 
        against unauthorized disclosure for reasons of national 
        security, and (B) any restricted data, as defined in 
        section 11(y) of the Atomic Energy Act of 1954 (42 
        U.S.C. 2014(y)).
            ``(16) The term `national security' means the 
        national defense and foreign relations of the United 
        States.''.

SEC. 1142. REPEAL OF TERMINATION OF AUTHORITY FOR CHIEF JUSTICE OF THE 
                    UNITED STATES TO DESIGNATE ARTICLE III JUDGES FOR 
                    TEMPORARY SERVICE ON COURT OF APPEALS FOR THE ARMED 
                    FORCES.

    Subsection (i) of section 1301 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 10 U.S.C. 942 note) is repealed.

                       Subtitle E--Other Matters

SEC. 1151. ADVISORY COMMITTEE ON CRIMINAL LAW JURISDICTION OVER 
                    CIVILIANS ACCOMPANYING THE ARMED FORCES IN TIME OF 
                    ARMED CONFLICT.

    (a) Establishment.--Not later than 45 days after the date 
of the enactment of this Act, the Secretary of Defense and the 
Attorney General shall jointly appoint an advisory committee to 
review and make recommendations concerning the appropriate 
forum for criminal jurisdiction over civilians accompanying the 
Armed Forces in the field outside the United States in time of 
armed conflict.
    (b) Membership.--The committee shall be composed of at 
least five individuals, including experts in military law, 
international law, and Federal civilian criminal law. In making 
appointments to the committee, the Secretary and the Attorney 
General shall ensure that the members of the committee reflect 
diverse experiences in the conduct of prosecution and defense 
functions.
    (c) Duties.--The committee shall do the following:
            (1) Review historical experiences and current 
        practices concerning the use, training, discipline, and 
        functions of civilians accompanying the Armed Forces in 
        the field.
            (2) Based upon such review and other information 
        available to the committee, develop specific 
        recommendations concerning the advisability and 
        feasibility of establishing United States criminal law 
        jurisdiction over persons who as civilians accompany 
        the Armed Forces in the field outside the United States 
        during time of armed conflict not involving a war 
        declared by Congress, including whether such 
        jurisdiction should be established through any of the 
        following means (or a combination of such means 
        depending upon the degree of the armed conflict 
        involved):
                    (A) Establishing court-martial jurisdiction 
                over such persons.
                    (B) Extending the jurisdiction of the 
                Article III courts to cover such persons.
                    (C) Establishing an Article I court to 
                exercise criminal jurisdiction over such 
                persons.
            (3) Develop such additional recommendations as the 
        committee considers appropriate as a result of the 
        review.
    (d) Report.--(1) Not later than December 15, 1996, the 
advisory committee shall transmit to the Secretary of Defense 
and the Attorney General a report setting forth its findings 
and recommendations, including the recommendations required 
under subsection (c)(2).
    (2) Not later than January 15, 1997, the Secretary of 
Defense and the Attorney General shall jointly transmit the 
report of the advisory committee to Congress. The Secretary and 
the Attorney General may include in the transmittal any joint 
comments on the report that they consider appropriate, and 
either such official may include in the transmittal any 
separate comments on the report that such official considers 
appropriate.
    (e) Definitions.--For purposes of this section:
            (1) The term ``Article I court'' means a court 
        established under Article I of the Constitution.
            (2) The term ``Article III court'' means a court 
        established under Article III of the Constitution.
    (f) Termination of Committee.--The advisory committee shall 
terminate 30 days after the date on which the report of the 
committee is submitted to Congress under subsection (d)(2).

SEC. 1152. TIME AFTER ACCESSION FOR INITIAL INSTRUCTION IN THE UNIFORM 
                    CODE OF MILITARY JUSTICE.

    Section 937(a)(1) (article 137(a)(1)) is amended by 
striking out ``within six days'' and inserting in lieu thereof 
``within fourteen days''.

SEC. 1153. TECHNICAL AMENDMENT.

    Section 866(f) (article 66(f)) is amended by striking out 
``Courts of Military Review'' both places it appears and 
inserting in lieu thereof ``Courts of Criminal Appeals''.

 TITLE XII--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET 
                                 UNION

SEC. 1201. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS.

    (a) In General.--For purposes of section 301 and other 
provisions of this Act, Cooperative Threat Reduction programs 
are the programs specified in subsection (b).
    (b) Specified Programs.--The programs referred to in 
subsection (a) are the following programs with respect to 
states of the former Soviet Union:
            (1) Programs to facilitate the elimination, and the 
        safe and secure transportation and storage, of nuclear, 
        chemical, and other weapons and their delivery 
        vehicles.
            (2) Programs to facilitate the safe and secure 
        storage of fissile materials derived from the 
        elimination of nuclear weapons.
            (3) Programs to prevent the proliferation of 
        weapons, weapons components, and weapons-related 
        technology and expertise.
            (4) Programs to expand military-to-military and 
        defense contacts.

SEC. 1202. FISCAL YEAR 1996 FUNDING ALLOCATIONS.

    (a) In General.--Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative 
Threat Reduction programs, not more than the following amounts 
may be obligated for the purposes specified:
            (1) For elimination of strategic offensive weapons 
        in Russia, Ukraine, Belarus, and Kazakhstan, 
        $90,000,000.
            (2) For weapons security in Russia, $42,500,000.
            (3) For the Defense Enterprise Fund, $0.
            (4) For nuclear infrastructure elimination in 
        Ukraine, Belarus, and Kazakhstan, $35,000,000.
            (5) For planning and design of a storage facility 
        for Russian fissile material, $29,000,000.
            (6) For planning and design of a chemical weapons 
        destruction facility in Russia, $73,000,000.
            (7) For activities designated as Defense and 
        Military Contacts/General Support/Training in Russia, 
        Ukraine, Belarus, and Kazakhstan, $10,000,000.
            (8) For activities designated as Other Assessments/
        Support $20,500,000.
    (b) Limited Authority To Vary Individual Amounts.--(1) If 
the Secretary of Defense determines that it is necessary to do 
so in the national interest, the Secretary may, subject to 
paragraph (2), obligate amounts for the purposes stated in any 
of the paragraphs of subsection (a) in excess of the amount 
specified for those purposes in that paragraph, but not in 
excess of 115 percent of that amount. However, the total amount 
obligated for the purposes stated in the paragraphs in 
subsection (a) may not by reason of the use of the authority 
provided in the preceding sentence exceed the sum of the 
amounts specified in those paragraphs.
    (2) An obligation for the purposes stated in any of the 
paragraphs in subsection (a) in excess of the amount specified 
in that paragraph may be made using the authority provided in 
paragraph (1) only after--
            (A) the Secretary submits to Congress a 
        notification of the intent to do so together with a 
        complete discussion of the justification for doing so; 
        and
            (B)  15 days have elapsed following the date of the 
        notification.
    (c) Reimbursement of Pay Accounts.--Funds appropriated 
pursuant to the authorization of appropriations in section 301 
for Cooperative Threat Reduction programs may be transferred to 
military personnel accounts for reimbursement of those accounts 
for the amount of pay and allowances paid to reserve component 
personnel for service while engaged in any activity under a 
Cooperative Threat Reduction program.

SEC. 1203. PROHIBITION ON USE OF FUNDS FOR PEACEKEEPING EXERCISES AND 
                    RELATED ACTIVITIES WITH RUSSIA.

    None of the funds appropriated pursuant to the 
authorization in section 301 for Cooperative Threat Reduction 
programs may be obligated or expended for the purpose of 
conducting with Russia any peacekeeping exercise or other 
peacekeeping-related activity.

SEC. 1204. REVISION TO AUTHORITY FOR ASSISTANCE FOR WEAPONS 
                    DESTRUCTION.

    Section 211 of Public Law 102-228 (22 U.S.C. 2551 note) is 
amended by adding at the end the following new subsection:
    ``(c) As part of a transmission to Congress under 
subsection (b) of a certification that a proposed recipient of 
United States assistance under this title is committed to 
carrying out the matters specified in each of paragraphs (1) 
through (6) of that subsection, the President shall include a 
statement setting forth, in unclassified form (together with a 
classified annex if necessary), the determination of the 
President, with respect to each such paragraph, as to whether 
that proposed recipient is at that time in fact carrying out 
the matter specified in that paragraph.''.

SEC. 1205. PRIOR NOTICE TO CONGRESS OF OBLIGATION OF FUNDS.

    (a) Annual Requirement.--(1) Not less than 15 days before 
any obligation of any funds appropriated for any fiscal year 
for a program specified under section 1201 as a Cooperative 
Threat Reduction program, the Secretary of Defense shall submit 
to the congressional committees specified in paragraph (2) a 
report on that proposed obligation for that program for that 
fiscal year.
    (2) The congressional committees referred to in paragraph 
(1) are the following:
            (A) The Committee on Armed Services, the Committee 
        on Foreign Relations, and the Committee on 
        Appropriations of the Senate.
            (B) The Committee on National Security, the 
        Committee on International Relations, and the Committee 
        on Appropriations of the House of Representatives.
    (b) Matters To Be Specified in Reports.--Each such report 
shall specify--
            (1) the activities and forms of assistance for 
        which the Secretary of Defense plans to obligate funds;
            (2) the amount of the proposed obligation; and
            (3) the projected involvement (if any) of any 
        department or agency of the United States (in addition 
        to the Department of Defense) and of the private sector 
        of the United States in the activities and forms of 
        assistance for which the Secretary of Defense plans to 
        obligate such funds.

SEC. 1206. REPORT ON ACCOUNTING FOR UNITED STATES ASSISTANCE.

    (a) Report.--(1) The Secretary of Defense shall submit to 
Congress an annual report on the efforts made by the United 
States (including efforts through the use of audits, 
examinations, and on-site inspections) to ensure that 
assistance provided under Cooperative Threat Reduction programs 
is fully accounted for and that such assistance is being used 
for its intended purposes.
    (2) A report shall be submitted under this section not 
later than January 31 of each year until the Cooperative Threat 
Reduction programs are completed.
    (b) Information To Be Included.--Each report under this 
section shall include the following:
            (1) A list of cooperative threat reduction 
        assistance that has been provided before the date of 
        the report.
            (2) A description of the current location of the 
        assistance provided and the current condition of such 
        assistance.
            (3) A determination of whether the assistance has 
        been used for its intended purpose.
            (4) A description of the activities planned to be 
        carried out during the next fiscal year to ensure that 
        cooperative threat reduction assistance provided during 
        that fiscal year is fully accounted for and is used for 
        its intended purpose.
    (c) Comptroller General Assessment.--Not later than 30 days 
after the date on which a report of the Secretary under 
subsection (a) is submitted to Congress, the Comptroller 
General of the United States shall submit to Congress a report 
giving the Comptroller General's assessment of the report and 
making any recommendations that the Comptroller General 
considers appropriate.

SEC. 1207. LIMITATION ON ASSISTANCE TO NUCLEAR WEAPONS SCIENTISTS OF 
                    FORMER SOVIET UNION.

    Amounts appropriated pursuant to the authorization of 
appropriations in section 301 for Cooperative Threat Reduction 
programs may not be obligated for any program established 
primarily to assist nuclear weapons scientists in states of the 
former Soviet Union until 30 days after the date on which the 
Secretary of Defense certifies in writing to Congress that the 
funds to be obligated will not be used (1) to contribute to the 
modernization of the strategic nuclear forces of such states, 
or (2) for research, development, or production of weapons of 
mass destruction.

SEC. 1208. LIMITATION RELATING TO OFFENSIVE BIOLOGICAL WARFARE PROGRAM 
                    OF RUSSIA.

    (a) Limitation.--Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative 
Threat Reduction programs that is available for the purpose 
stated in section 1202(a)(6), $60,000,000 may not be obligated 
or expended until the President submits to Congress either a 
certification as provided in subsection (b) or a certification 
as provided in subsection (c).
    (b) Certification With Respect to Offensive Biological 
Warfare Program of Russia.--A certification under this 
subsection is a certification by the President of each of the 
following:
            (1) That Russia is in compliance with its 
        obligations under the Biological Weapons Convention.
            (2) That Russia has agreed with the United States 
        and the United Kingdom on a common set of procedures to 
        govern visits by officials of the United States and 
        United Kingdom to military biological facilities of 
        Russia, as called for under the Joint Statement on 
        Biological Weapons issued by officials of the United 
        States, the United Kingdom, and Russia on September 14, 
        1992.
            (3) That visits by officials of the United States 
        and United Kingdom to the four declared military 
        biological facilities of Russia have occurred.
    (c) Alternative Certification.--A certification under this 
subsection is a certification by the President that the 
President is unable to make a certification under subsection 
(b).
    (d) Use of Funds Upon Alternative Certification.--If the 
President makes a certification under subsection (c), the 
$60,000,000 specified in subsection (a)--
            (1) shall not be available for the purpose stated 
        in section 1202(a)(6); and
            (2) shall be available for activities in Ukraine, 
        Kazakhstan, and Belarus--
                    (A) for the elimination of strategic 
                offensive weapons (in addition to the amount 
                specified in section 1202(a)(1)); and
                    (B) for nuclear infrastructure elimination 
                (in addition to the amount specified in section 
                1202(a)(4)).

SEC. 1209. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION 
                    FACILITY.

    (a) Limitation.--Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative 
Threat Reduction programs that is available for planning and 
design of a chemical weapons destruction facility, not more 
than one-half of such amount may be obligated or expended until 
the President certifies to Congress the following:
            (1) That the United States and Russia have 
        completed a joint laboratory study to determine the 
        feasibility of an appropriate technology for 
        destruction of chemical weapons of Russia.
            (2) That Russia is making reasonable progress, with 
        the assistance of the United States (if necessary), 
        toward the completion of a comprehensive implementation 
        plan for managing and funding the dismantlement and 
        destruction of Russia's chemical weapons stockpile.
            (3) That the United States and Russia have made 
        substantial progress toward resolution, to the 
        satisfaction of the United States, of outstanding 
        compliance 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 nonproduction of chemical 
        weapons and on measures to facilitate the multilateral 
        convention on banning chemical weapons signed on June 
        1, 1990.

             TITLE XIII--MATTERS RELATING TO OTHER NATIONS

                  Subtitle A--Peacekeeping Provisions

SEC. 1301. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS FOR UNITED 
                    STATES SHARE OF COSTS OF UNITED NATIONS 
                    PEACEKEEPING ACTIVITIES.

    (a) In General.--Chapter 20 of title 10, United States 
Code, is amended by inserting after section 404 the following 
new section:

``Sec. 405. Use of Department of Defense funds for United States share 
                    of costs of United Nations peacekeeping activities: 
                    limitation

    ``(a) Prohibition on Use of Funds.--Funds available to the 
Department of Defense may not be used to make a financial 
contribution (directly or through another department or agency 
of the United States) to the United Nations--
            ``(1) for the costs of a United Nations 
        peacekeeping activity; or
            ``(2) for any United States arrearage to the United 
        Nations.
    ``(b) Application of Prohibition.--The prohibition in 
subsection (a) applies to voluntary contributions, as well as 
to contributions pursuant to assessment by the United Nations 
for the United States share of the costs of a peacekeeping 
activity.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of subchapter I of such chapter is amended by adding 
at the end the following new item:

``405. Use of Department of Defense funds for United States share of 
          costs of United Nations peacekeeping activities: 
          limitation.''.

              Subtitle B--Humanitarian Assistance Programs

SEC. 1311. OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID PROGRAMS.

    (a) Covered Programs.--For purposes of section 301 and 
other provisions of this Act, programs of the Department of 
Defense designated as Overseas Humanitarian, Disaster, and 
Civic Aid (OHDACA) programs are the programs provided by 
sections 401, 402, 404, 2547, and 2551 of title 10, United 
States Code.
    (b) GAO Report.--Not later than March 1, 1996, the 
Comptroller General of the United States shall provide to the 
congressional defense committees a report on--
            (1) existing funding mechanisms available to cover 
        the costs associated with the Overseas Humanitarian, 
        Disaster, and Civic Assistance activities through funds 
        provided to the Department of State or the Agency for 
        International Development, and
            (2) if such mechanisms do not exist, actions 
        necessary to institute such mechanisms, including any 
        changes in existing law or regulations.

SEC. 1312. HUMANITARIAN ASSISTANCE.

    Section 2551 of title 10, United States Code, is amended--
            (1) by striking out subsections (b) and (c);
            (2) by redesignating subsection (d) as subsection 
        (b);
            (3) by striking out subsection (e) and inserting in 
        lieu thereof the following:
    ``(c) Status Reports.--(1) The Secretary of Defense shall 
submit to the congressional committees specified in subsection 
(f) an annual report on the provision of humanitarian 
assistance pursuant to this section for the prior fiscal year. 
The report shall be submitted each year at the time of the 
budget submission by the President for the next fiscal year.
    ``(2) Each report required by paragraph (1) shall cover all 
provisions of law that authorize appropriations for 
humanitarian assistance to be available from the Department of 
Defense for the purposes of this section.
    ``(3) Each report under this subsection shall set forth the 
following information regarding activities during the previous 
fiscal year:
            ``(A) The total amount of funds obligated for 
        humanitarian relief under this section.
            ``(B) The number of scheduled and completed 
        transportation missions for purposes of providing 
        humanitarian assistance under this section.
            ``(C) A description of any transfer of excess 
        nonlethal supplies of the Department of Defense made 
        available for humanitarian relief purposes under 
        section 2547 of this title. The description shall 
        include the date of the transfer, the entity to whom 
        the transfer is made, and the quantity of items 
        transferred.'';
            (4) by redesignating subsection (f) as subsection 
        (d) and in that subsection striking out ``the 
        Committees on'' and all that follows through ``House of 
        Representatives of the'' and inserting in lieu thereof 
        ``the congressional committees specified in subsection 
        (f) and the Committees on Appropriations of the Senate 
        and House of Representatives of the'';
            (5) by redesignating subsection (g) as subsection 
        (e); and
            (6) by adding at the end the following new 
        subsection:
    ``(f) Congressional Committees.--The congressional 
committees referred to in subsections (c)(1) and (d) are the 
following:
            ``(1) The Committee on Armed Services and the 
        Committee on Foreign Relations of the Senate.
            ``(2) The Committee on National Security and the 
        Committee on International Relations of the House of 
        Representatives.''.

SEC. 1313. LANDMINE CLEARANCE PROGRAM.

    (a) Inclusion in General Humanitarian Assistance Program.--
Subsection (e) of section 401 of title 10, United States Code, 
is amended--
            (1) by striking out ``means--'' and inserting in 
        lieu thereof ``means:'';
            (2) by revising the first word in each of 
        paragraphs (1) through (4) so that the first letter of 
        such word is upper case;
            (3) by striking out the semicolon at the end of 
        paragraphs (1) and (2) and inserting in lieu thereof a 
        period;
            (4) by striking out ``; and'' at the end of 
        paragraph (3) and inserting in lieu thereof a period; 
        and
            (5) by adding at the end the following new 
        paragraph:
            ``(5) Detection and clearance of landmines, 
        including activities relating to the furnishing of 
        education, training, and technical assistance with 
        respect to the detection and clearance of landmines.''.
    (b) Limitation on Landmine Assistance by Members of Armed 
Forces.--Subsection (a) of such section is amended by adding at 
the end the following new paragraph:
    ``(4) The Secretary of Defense shall ensure that no member 
of the Armed Forces, while providing assistance under this 
section that is described in subsection (e)(5)--
            ``(A) engages in the physical detection, lifting, 
        or destroying of landmines (unless the member does so 
        for the concurrent purpose of supporting a United 
        States military operation); or
            ``(B) provides such assistance as part of a 
        military operation that does not involve the Armed 
        Forces.''.
    (c) Repeal.--Section 1413 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2913; 10 U.S.C. 401 note) is repealed.

            Subtitle C--Arms Exports and Military Assistance

SEC. 1321. DEFENSE EXPORT LOAN GUARANTEES.

    (a) Establishment of Program.--(1) Chapter 148 of title 10, 
United States Code, is amended by adding at the end the 
following new subchapter:

            ``SUBCHAPTER VI--DEFENSE EXPORT LOAN GUARANTEES

  ``Sec.
``2540. Establishment of loan guarantee program.
``2540a. Transferability.
``2540b. Limitations.
``2540c. Fees charged and collected.
``2540d. Definitions.

``Sec. 2540. Establishment of loan guarantee program

    ``(a) Establishment.--In order to meet the national 
security objectives in section 2501(a) of this title, the 
Secretary of Defense shall establish a program under which the 
Secretary may issue guarantees assuring a lender against losses 
of principal or interest, or both principal and interest, 
arising out of the financing of the sale or long-term lease of 
defense articles, defense services, or design and construction 
services to a country referred to in subsection (b).
    ``(b) Covered Countries.--The authority under subsection 
(a) applies with respect to the following countries:
            ``(1) A member nation of the North Atlantic Treaty 
        Organization (NATO).
            ``(2) A country designated as of March 31, 1995, as 
        a major non-NATO ally pursuant to section 2350a(i)(3) 
        of this title.
            ``(3) A country in Central Europe that, as 
        determined by the Secretary of State--
                    ``(A) has changed its form of national 
                government from a nondemocratic form of 
                government to a democratic form of government 
                since October 1, 1989; or
                    ``(B) is in the process of changing its 
                form of national government from a 
                nondemocratic form of government to a 
                democratic form of government.
            ``(4) A noncommunist country that was a member 
        nation of the Asia Pacific Economic Cooperation (APEC) 
        as of October 31, 1993.
    ``(c) Authority Subject to Provisions of Appropriations.--
The Secretary may guarantee a loan under this subchapter only 
to such extent or in such amounts as may be provided in advance 
in appropriations Acts.

``Sec. 2540a. Transferability

    ``A guarantee issued under this subchapter shall be fully 
and freely transferable.

``Sec. 2540b. Limitations

    ``(a) Terms and Conditions of Loan Guarantees.--In issuing 
a guarantee under this subchapter for a medium-term or long-
term loan, the Secretary may not offer terms and conditions 
more beneficial than those that would be provided to the 
recipient by the Export-Import Bank of the United States under 
similar circumstances in conjunction with the provision of 
guarantees for nondefense articles and services.
    ``(b) Losses Arising From Fraud or Misrepresentation.--No 
payment may be made under a guarantee issued under this 
subchapter for a loss arising out of fraud or misrepresentation 
for which the party seeking payment is responsible.
    ``(c) No Right of Acceleration.--The Secretary of Defense 
may not accelerate any guaranteed loan or increment, and may 
not pay any amount, in respect of a guarantee issued under this 
subchapter, other than in accordance with the original payment 
terms of the loan.

``Sec. 2540c. Fees charged and collected

    ``(a) Exposure Fees.--The Secretary of Defense shall charge 
a fee (known as `exposure fee') for each guarantee issued under 
this subchapter.
    ``(b) Amount of Exposure Fee.--To the extent that the cost 
of the loan guarantees under this subchapter is not otherwise 
provided for in appropriations Acts, the fee imposed under 
subsection (a) with respect to a loan guarantee shall be fixed 
in an amount that is sufficient to meet potential liabilities 
of the United States under the loan guarantee.
    ``(c) Payment Terms.--The fee under subsection (a) for each 
guarantee shall become due as the guarantee is issued. In the 
case of a guarantee for a loan which is disbursed 
incrementally, and for which the guarantee is correspondingly 
issued incrementally as portions of the loan are disbursed, the 
fee shall be paid incrementally in proportion to the amount of 
the guarantee that is issued.
    ``(d) Administrative Fees.--The Secretary of Defense shall 
charge a fee for each guarantee issued under this subchapter to 
reflect the additional administrative costs of the Department 
of Defense that are directly attributable to the administration 
of the program under this subchapter. Such fees shall be 
credited to a special account in the Treasury. Amounts in the 
special account shall be available, to the extent and in 
amounts provided in appropriations Acts, for paying the costs 
of administrative expenses of the Department of Defense that 
are attributable to the loan guarantee program under this 
subchapter.

``Sec. 2540d. Definitions

    ``In this subchapter:
            ``(1) The terms `defense article', `defense 
        services', and `design and construction services' have 
        the meanings given those terms in section 47 of the 
        Arms Export Control Act (22 U.S.C. 2794).
            ``(2) The term `cost', with respect to a loan 
        guarantee, has the meaning given that term in section 
        502 of the Congressional Budget and Impoundment Control 
        Act of 1974 (2 U.S.C. 661a).''.
    (2) The table of subchapters at the beginning of such 
chapter is amended by adding at the end the following new item:

``VI. Defense Export Loan Guarantees.............................2540''.

    (b) Report.--Not later than two years after the date of the 
enactment of this Act, the President shall submit to Congress a 
report on the loan guarantee program established pursuant to 
section 2540 of title 10, United States Code, as added by 
subsection (a). The report shall include--
            (1) an analysis of the costs and benefits of the 
        loan guarantee program; and
            (2) any recommendations for modification of the 
        program that the President considers appropriate, 
        including--
                    (A) any recommended addition to the list of 
                countries for which a guarantee may be issued 
                under the program; and
                    (B) any proposed legislation necessary to 
                authorize a recommended modification.
    (c) First Year Costs.--The Secretary of Defense shall make 
available, from amounts appropriated to the Department of 
Defense for fiscal year 1996 for operations and maintenance, 
such amounts as may be necessary, not to exceed $500,000, for 
the expenses of the Department of Defense during fiscal year 
1996 that are directly attributable to the administration of 
the defense export loan guarantee program under subchapter VI 
of chapter 148 of title 10, United States Code, as added by 
subsection (a).
    (d) Replenishment of Operations and Maintenance Accounts 
for First Year Costs.--The Secretary of Defense shall, using 
funds in the special account referred to in section 2540c(d) of 
title 10, United States Code (as added by subsection (b)), 
replenish operations and maintenance accounts for amounts 
expended from such accounts for expenses referred to in 
subsection (c).

SEC. 1322. NATIONAL SECURITY IMPLICATIONS OF UNITED STATES EXPORT 
                    CONTROL POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) Export controls remain an important element of 
        the national security policy of the United States.
            (2) It is in the national security interest that 
        United States export control policy be effective in 
        preventing the transfer, to potential adversaries or 
        combatants of the United States, of technology that 
        threatens the national security or defense of the 
        United States.
            (3) It is in the national security interest that 
        the United States monitor aggressively the export of 
        militarily critical technology in order to prevent its 
        diversion to potential adversaries or combatants of the 
        United States.
            (4) The Department of Defense relies increasingly 
        on commercial and dual-use technologies, products, and 
        processes to support United States military 
        capabilities and economic strength.
            (5) The maintenance of the military advantage of 
        the United States depends on effective export controls 
        on dual-use items and technologies that are critical to 
        the military capabilities of the Armed Forces.
    (b)  Sense of Congress.--It is the sense of Congress that--
            (1) the Secretary of Defense should evaluate 
        license applications for the export of militarily 
        critical commodities the export of which is controlled 
        for national security reasons if those commodities are 
        to be exported to certain countries of concern;
            (2) the Secretary of Defense should identify the 
        dual-use items and technologies that are critical to 
        the military capabilities of the Armed Forces, 
        including the military use made of such items and 
        technologies;
            (3) upon identification by the Secretary of Defense 
        of the dual-use items and technologies referred to in 
        paragraph (2), the President should ensure effective 
        export controls or use unilateral export controls on 
        dual-use items and technologies that are critical to 
        the military capabilities of the Armed Forces 
        (regardless of the availability of such items or 
        technologies overseas) with respect to the countries 
        that--
                    (A) pose a threat to the national security 
                interests of the United States; and
                    (B) are not members in good standing of 
                bilateral or multilateral agreements to which 
                the United States is a party on the use of such 
                items and technologies; and
            (4) the President, upon recommendation of the 
        Secretary of Defense, should ensure effective controls 
        on the re-export by other countries of dual-use items 
        and technologies that are critical to the military 
        capabilities of the Armed Forces.
    (c) Annual Report.--(1) Not later than December 1 of each 
year through 1999, the President shall submit to the committees 
specified in paragraph (4) a report on the effect of the export 
control policy of the United States on the national security 
interests of the United States.
    (2) The report shall include the following:
            (A) A list setting forth each country determined by 
        the Secretary of Defense, the intelligence community, 
        and other appropriate agencies to be a rogue nation or 
        potential adversary or combatant of the United States.
            (B) For each country so listed, a list of--
                    (i) the categories of items that the United 
                States currently prohibits for export to the 
                country;
                    (ii) the categories of items that may be 
                exported from the United States with an 
                individual license, and in such cases, any 
                licensing conditions normally required and the 
                policy grounds used for approvals and denials; 
                and
                    (iii) the categories of items that may be 
                exported under a general license designated 
                ``G-DEST''.
            (C) For each category of items listed under 
        subparagraph (B)--
                    (i) a statement whether a prohibition, 
                control, or licensing requirement on a category 
                of items is imposed pursuant to an 
                international multilateral agreement or is 
                unilateral;
                    (ii) a statement whether a prohibition, 
                control, or licensing requirement on a category 
                of items is imposed by the other members of an 
                international agreement or is unilateral;
                    (iii) when the answer under either clause 
                (i) or clause (ii) is unilateral, a statement 
                concerning the efforts being made to ensure 
                that the prohibition, control, or licensing 
                requirement is made multilateral; and
                    (iv) a statement on what impact, if any, a 
                unilateral prohibition is having, or would 
                have, on preventing the rogue nation or 
                potential adversary from attaining the items in 
                question for military purposes.
            (D) A description of United States policy on 
        sharing satellite imagery that has military 
        significance and a discussion of the criteria for 
        determining the imagery that has that significance.
            (E) A description of the relationship between 
        United States policy on the export of space launch 
        vehicle technology and the Missile Technology Control 
        Regime.
            (F) An assessment of United States efforts to 
        support the inclusion of additional countries in the 
        Missile Technology Control Regime.
            (G) An assessment of the ongoing efforts made by 
        potential participant countries in the Missile 
        Technology Control Regime to meet the guidelines 
        established by the Missile Technology Control Regime.
            (H) A discussion of the history of the space launch 
        vehicle programs of other countries, including a 
        discussion of the military origins and purposes of such 
        programs and the current level of military involvement 
        in such programs.
    (3) The President shall submit the report in unclassified 
form, but may include a classified annex.
    (4) The committees referred to in paragraph (1) are the 
following:
            (A) The Committee on Armed Services and the 
        Committee on Foreign Relations of the Senate.
            (B) The Committee on National Security and the 
        Committee on International Relations of the House of 
        Representatives.
    (5) For purposes of this subsection, the term ``Missile 
Technology Control Regime'' means the policy statement 
announced on April 16, 1987, between the United States, the 
United Kingdom, the Federal Republic of Germany, France, Italy, 
Canada, and Japan to restrict sensitive missile-relevant 
transfers based on the Missile Technology Control Regime Annex, 
and any amendment thereto.

SEC. 1323. DEPARTMENT OF DEFENSE REVIEW OF EXPORT LICENSES FOR CERTAIN 
                    BIOLOGICAL PATHOGENS.

    (a) Department of Defense Review.--Any application to the 
Secretary of Commerce for a license for the export of a class 
2, class 3, or class 4 biological pathogen to a country 
identified to the Secretary under subsection (c) as a country 
that is known or suspected to have a biological weapons program 
shall be referred to the Secretary of Defense for review. The 
Secretary of Defense shall notify the Secretary of Commerce 
within 15 days after receipt of an application under the 
preceding sentence whether the export of such biological 
pathogen pursuant to the license would be contrary to the 
national security interests of the United States.
    (b) Denial of License if Contrary to National Security 
Interest.--A license described in subsection (a) shall be 
denied by the Secretary of Commerce if it is determined that 
the export of such biological pathogen to that country would be 
contrary to the national security interests of the United 
States.
    (c) Identification of Countries Known or Suspected To Have 
a Program To Develop Offensive Biological Weapons.--(1) The 
Secretary of Defense shall determine, for the purposes of this 
section, those countries that are known or suspected to have a 
program to develop offensive biological weapons. Upon making 
such determination, the Secretary shall provide to the 
Secretary of Commerce a list of those countries.
    (2) The Secretary of Defense shall update the list under 
paragraph (1) on a regular basis. Whenever a country is added 
to or deleted from such list, the Secretary shall notify the 
Secretary of Commerce.
    (3) Determination under this subsection of countries that 
are known or suspected to have a program to develop offensive 
biological weapons shall be made in consultation with the 
Secretary of State and the intelligence community.
    (d) Definition.--For purposes of this section, the term 
``class 2, class 3, or class 4 biological pathogen'' means any 
biological pathogen that is characterized by the Centers for 
Disease Control as a class 2, class 3, or class 4 biological 
pathogen.

SEC. 1324. ANNUAL REPORTS ON IMPROVING EXPORT CONTROL MECHANISMS AND ON 
                    MILITARY ASSISTANCE.

    (a) Joint Reports by Secretaries of State and Commerce.--
Not later than April 1 of each of 1996 and 1997, the Secretary 
of State and the Secretary of Commerce shall submit to Congress 
a joint report, prepared in consultation with the Secretary of 
Defense, relating to United States export-control mechanisms. 
Each such report shall set forth measures to be taken to 
strengthen United States export-control mechanisms, including--
            (1) steps being taken by each Secretary (A) to 
        share on a regular basis the export licensing watchlist 
        of that Secretary's department with the other 
        Secretary, and (B) to incorporate the export licensing 
        watchlist data received from the other Secretary into 
        the watchlist of that Secretary's department;
            (2) steps being taken by each Secretary to 
        incorporate into the watchlist of that Secretary's 
        department similar data from systems maintained by the 
        Department of Defense and the United States Customs 
        Service; and
            (3) a description of such further measures to be 
        taken to strengthen United States export-control 
        mechanisms as the Secretaries consider to be 
        appropriate.
    (b) Reports by Inspectors General.--(1) Not later than 
April 1 of each of 1996 and 1997, the Inspector General of the 
Department of State and the Inspector General of the Department 
of Commerce shall each submit to Congress a report providing 
that official's evaluation of the effectiveness during the 
preceding year of the export licensing watchlist screening 
process of that official's department. The reports shall be 
submitted in both a classified and unclassified version.
    (2) Each report of an Inspector General under paragraph (1) 
shall (with respect to that official's department)--
            (A) set forth the number of export licenses granted 
        to parties on the export licensing watchlist;
            (B) set forth the number of end-use checks 
        performed with respect to export licenses granted to 
        parties on the export licensing watchlist the previous 
        year;
            (C) assess the screening process used in granting 
        an export license when an applicant is on the export 
        licensing watchlist; and
            (D) assess the extent to which the export licensing 
        watchlist contains all relevant information and parties 
        required by statute or regulation.
    (c) Annual Military Assistance Report.--The Foreign 
Assistance Act of 1961 is amended by inserting after section 
654 (22 U.S.C. 2414) the following new section:

``SEC. 655. ANNUAL REPORT ON MILITARY ASSISTANCE, MILITARY EXPORTS, AND 
                    MILITARY IMPORTS.

    ``(a) Report Required.--Not later than February 1 of each 
of 1996 and 1997, the President shall transmit to Congress a 
report concerning military assistance authorized or furnished 
for the fiscal year ending the previous September 30.
    ``(b) Information Relating to Military Assistance and 
Military Exports.--Each such report shall show the aggregate 
dollar value and quantity of defense articles (including excess 
defense articles) and defense services, and of military 
education and training, authorized or furnished by the United 
States to each foreign country and international organization. 
The report shall specify, by category, whether those articles 
and services, and that education and training, were furnished 
by grant under chapter 2 or chapter 5 of part II of this Act or 
by sale under chapter 2 of the Arms Export Control Act or were 
authorized by commercial sale licensed under section 38 of the 
Arms Export Control Act.
    ``(c) Information Relating to Military Imports.--Each such 
report shall also include the total amount of military items of 
non-United States manufacture that were imported into the 
United States during the fiscal year covered by the report. The 
report shall show the country of origin, the type of item being 
imported, and the total amount of items.''.

SEC. 1325. REPORT ON PERSONNEL REQUIREMENTS FOR CONTROL OF TRANSFER OF 
                    CERTAIN WEAPONS.

    Not later than 30 days after the date of the enactment of 
this Act, the Secretary of Defense and the Secretary of Energy 
shall submit to the committees of Congress referred to in 
subsection (c) of section 1154 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
Stat. 1761) the report required under subsection (a) of that 
section. The Secretary of Defense and the Secretary of Energy 
shall include with the report an explanation of the failure of 
such Secretaries to submit the report in accordance with such 
subsection (a) and with all other previous requirements for the 
submittal of the report.

 Subtitle D--Burdensharing and Other Cooperative Activities Involving 
                            Allies and NATO

SEC. 1331. ACCOUNTING FOR BURDENSHARING CONTRIBUTIONS.

    (a) Authority To Manage Contributions in Local Currency, 
Etc.--Subsection (b) of section 2350j of title 10, United 
States Code, is amended to read as follows:
    ``(b) Accounting.--Contributions accepted under subsection 
(a) which are not related to security assistance may be 
accepted, managed, and expended in dollars or in the currency 
of the host nation (or, in the case of a contribution from a 
regional organization, in the currency in which the 
contribution was provided). Any such contribution shall be 
placed in an account established for such purpose and shall 
remain available until expended for the purposes specified in 
subsection (c). The Secretary of Defense shall establish a 
separate account for such purpose for each country or regional 
organization from which such contributions are accepted under 
subsection (a).''.
    (b) Conforming Amendment.--Subsection (d) of such section 
is amended by striking out ``credited under subsection (b) to 
an appropriation account of the Department of Defense'' and 
inserting in lieu thereof ``placed in an account established 
under subsection (b)''.
    (c) Technical Amendment.--Such section is further amended--
            (1) in subsection (e)(1), by striking out ``a 
        report to the congressional defense committees'' and 
        inserting in lieu thereof ``to the congressional 
        committees specified in subsection (g) a report''; and
            (2) by adding at the end the following new 
        subsection:
    ``(g) Congressional Committees.--The congressional 
committees referred to in subsection (e)(1) are--
            ``(1) the Committee on Armed Services and the 
        Committee on Appropriations of the Senate; and
            ``(2) the Committee on National Security and the 
        Committee on Appropriations of the House of 
        Representatives.''.

SEC. 1332. AUTHORITY TO ACCEPT CONTRIBUTIONS FOR EXPENSES OF RELOCATION 
                    WITHIN HOST NATION OF UNITED STATES ARMED FORCES 
                    OVERSEAS.

    (a) In General.--(1) Subchapter II of chapter 138 of title 
10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 2350k. Relocation within host nation of elements of armed forces 
                    overseas

    ``(a) Authority To Accept Contributions.--The Secretary of 
Defense may accept contributions from any nation because of or 
in support of the relocation of elements of the armed forces 
from or to any location within that nation. Such contributions 
may be accepted in dollars or in the currency of the host 
nation. Any such contribution shall be placed in an account 
established for such purpose and shall remain available until 
expended for the purposes specified in subsection (b). The 
Secretary shall establish a separate account for such purpose 
for each country from which such contributions are accepted.
    ``(b) Use of Contributions.--The Secretary may use a 
contribution accepted under subsection (a) only for payment of 
costs incurred in connection with the relocation concerning 
which the contribution was made. Those costs include the 
following:
            ``(1) Design and construction services, including 
        development and review of statements of work, master 
        plans and designs, acquisition of construction, and 
        supervision and administration of contracts relating 
        thereto.
            ``(2) Transportation and movement services, 
        including packing, unpacking, storage, and 
        transportation.
            ``(3) Communications services, including 
        installation and deinstallation of communications 
        equipment, transmission of messages and data, and 
        rental of transmission capability.
            ``(4) Supply and administration, including 
        acquisition of expendable office supplies, rental of 
        office space, budgeting and accounting services, 
        auditing services, secretarial services, and 
        translation services.
            ``(5) Personnel costs, including salary, allowances 
        and overhead of employees whether full-time or part-
        time, temporary or permanent (except for military 
        personnel), and travel and temporary duty costs.
            ``(6) All other clearly identifiable expenses 
        directly related to relocation.
    ``(c) Method of Contribution.--Contributions may be 
accepted in any of the following forms:
            ``(1) Irrevocable letter of credit issued by a 
        financial institution acceptable to the Treasurer of 
        the United States.
            ``(2) Drawing rights on a commercial bank account 
        established and funded by the host nation, which 
        account is blocked such that funds deposited cannot be 
        withdrawn except by or with the approval of the United 
        States.
            ``(3) Cash, which shall be deposited in a separate 
        trust fund in the United States Treasury pending 
        expenditure and which shall accrue interest in 
        accordance with section 9702 of title 31.
    ``(d) Annual Report to Congress.--Not later than 30 days 
after the end of each fiscal year, the Secretary shall submit 
to Congress a report specifying--
            ``(1) the amount of the contributions accepted by 
        the Secretary during the preceding fiscal year under 
        subsection (a) and the purposes for which the 
        contributions were made; and
            ``(2) the amount of the contributions expended by 
        the Secretary during the preceding fiscal year and the 
        purposes for which the contributions were expended.''.
    (2) The table of sections at the beginning of subchapter II 
of chapter 138 of such title is amended by adding at the end 
the following new item:

``2350k. Relocation within host nation of elements of armed forces 
          overseas.''.

    (b) Effective Date.--Section 2350k of title 10, United 
States Code, as added by subsection (a), shall take effect on 
the date of the enactment of this Act and shall apply to 
contributions for relocation of elements of the Armed Forces in 
or to any nation received on or after such date.

SEC. 1333. REVISED GOAL FOR ALLIED SHARE OF COSTS FOR UNITED STATES 
                    INSTALLATIONS IN EUROPE.

    Section 1304(a) of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2890) is 
amended--
            (1) by inserting ``(1)'' after ``so that''; and
            (2) by inserting before the period at the end the 
        following: ``, and (2) by September 30, 1997, those 
        nations have assumed 42.5 percent of such costs''.

SEC. 1334. EXCLUSION OF CERTAIN FORCES FROM EUROPEAN END STRENGTH 
                    LIMITATION.

    (a) Exclusion of Members Performing Duties Under Military-
To-Military Contact Program.--Paragraph (3) of section 1002(c) 
of the Department of Defense Authorization Act, 1985 (22 U.S.C. 
1928 note) is amended to read as follows:
    ``(3) For purposes of this subsection, the following 
members of the Armed Forces are excluded in calculating the end 
strength level of members of the Armed Forces of the United 
States assigned to permanent duty ashore in European member 
nations of NATO:
            ``(A) Members assigned to permanent duty ashore in 
        Iceland, Greenland, and the Azores.
            ``(B) Members performing duties in Europe for more 
        than 179 days under a military-to-military contact 
        program under section 168 of title 10, United States 
        Code.''.

SEC. 1335. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS WITH NATO 
                    ORGANIZATIONS.

    Section 2350b(e) of title 10, United States Code, is 
amended--
            (1) in paragraph (1), by inserting ``or a NATO 
        organization'' after ``a participant (other than the 
        United States)''; and
            (2) in paragraph (2), by striking out ``a 
        cooperative project'' and inserting in lieu thereof 
        ``such a cooperative project or a NATO organization''.

SEC. 1336. SUPPORT SERVICES FOR THE NAVY AT THE PORT OF HAIFA, ISRAEL.

    (a) Sense of Congress.--It is the sense of Congress that 
the Secretary of Defense should promptly seek to undertake such 
actions as are necessary--
            (1) to ensure that suitable port services are 
        available to the Navy at the Port of Haifa, Israel; and
            (2) to ensure the availability to the Navy of 
        suitable services at that port in light of the 
        continuing increase in commercial activities at the 
        port.
    (b) Report.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of the Navy shall submit 
to Congress a report on the availablity of port services for 
the Navy in the eastern Mediterranean Sea region. The report 
shall specify--
            (1) the services required by the Navy when calling 
        at the port of Haifa, Israel; and
            (2) the availability of those services at ports 
        elsewhere in the region.

                       Subtitle E--Other Matters

SEC. 1341. PROHIBITION ON FINANCIAL ASSISTANCE TO TERRORIST COUNTRIES.

    (a) Prohibition.--Subchapter I of chapter 134 of title 10, 
United States Code, is amended by adding at the end the 
following:

``Sec. 2249a. Prohibition on providing financial assistance to 
                    terrorist countries

    ``(a) Prohibition.--Funds available to the Department of 
Defense may not be obligated or expended to provide financial 
assistance to--
            ``(1) any country with respect to which the 
        Secretary of State has made a determination under 
        section 6(j)(1)(A) of the Export Administration Act of 
        1979 (50 App. 2405(j));
            ``(2) any country identified in the latest report 
        submitted to Congress under section 140 of the Foreign 
        Relations Authorization Act, Fiscal Years 1988 and 1989 
        (22 U.S.C. 2656f), as providing significant support for 
        international terrorism; or
            ``(3) any other country that, as determined by the 
        President--
                    ``(A) grants sanctuary from prosecution to 
                any individual or group that has committed an 
                act of international terrorism; or
                    ``(B) otherwise supports international 
                terrorism.
    ``(b) Waiver.--(1) The President may waive the application 
of subsection (a) to a country if the President determines--
            ``(A) that it is in the national security interests 
        of the United States to do so; or
            ``(B) that the waiver should be granted for 
        humanitarian reasons.
    ``(2) The President shall--
            ``(A) notify the Committee on Armed Services and 
        the Committee on Foreign Relations of the Senate and 
        the Committee on National Security and the Committee on 
        International Relations of the House of Representatives 
        at least 15 days before the waiver takes effect; and
            ``(B) publish a notice of the waiver in the Federal 
        Register.
    ``(c) Definition.--In this section, the term `international 
terrorism' has the meaning given that term in section 140(d)of 
the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (22 
U.S.C. 2656f(d)).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of subchapter I of such chapter is amended by adding 
at the end the following:

``2249a. Prohibition on providing financial assistance to terrorist 
          countries.''.

SEC. 1342. JUDICIAL ASSISTANCE TO THE INTERNATIONAL TRIBUNAL FOR 
                    YUGOSLAVIA AND TO THE INTERNATIONAL TRIBUNAL FOR 
                    RWANDA.

    (a) Surrender of Persons.--
            (1) Application of united states extradition 
        laws.--Except as provided in paragraphs (2) and (3), 
        the provisions of chapter 209 of title 18, United 
        States Code, relating to the extradition of persons to 
        a foreign country pursuant to a treaty or convention 
        for extradition between the United States and a foreign 
        government, shall apply in the same manner and extent 
        to the surrender of persons, including United States 
        citizens, to--
                    (A) the International Tribunal for 
                Yugoslavia, pursuant to the Agreement Between 
                the United States and the International 
                Tribunal for Yugoslavia; and
                    (B) the International Tribunal for Rwanda, 
                pursuant to the Agreement Between the United 
                States and the International Tribunal for 
                Rwanda.
            (2) Evidence on hearings.--For purposes of applying 
        section 3190 of title 18, United States Code, in 
        accordance with paragraph (1), the certification 
        referred to in that section may be made by the 
        principal diplomatic or consular officer of the United 
        States resident in such foreign countries where the 
        International Tribunal for Yugoslavia or the 
        International Tribunal for Rwanda may be permanently or 
        temporarily situated.
            (3) Payment of fees and costs.--(A) The provisions 
        of the Agreement Between the United States and the 
        International Tribunal for Yugoslavia and of the 
        Agreement Between the United States and the 
        International Tribunal for Rwanda shall apply in lieu 
        of the provisions of section 3195 of title 18, United 
        States Code, with respect to the payment of expenses 
        arising from the surrender by the United States of a 
        person to the International Tribunal for Yugoslavia or 
        the International Tribunal for Rwanda, respectively, or 
        from any proceedings in the United States relating to 
        such surrender.
            (B) The authority of subparagraph (A) may be 
        exercised only to the extent and in the amounts 
        provided in advance in appropriations Acts.
            (4) Nonapplicability of the federal rules.--The 
        Federal Rules of Evidence and the Federal Rules of 
        Criminal Procedure do not apply to proceedings for the 
        surrender of persons to the International Tribunal for 
        Yugoslavia or the International Tribunal for Rwanda.
    (b) Assistance to Foreign and International Tribunals and 
to Litigants Before Such Tribunals.--Section 1782(a) of title 
28, United States Code, is amended by inserting in the first 
sentence after ``foreign or international tribunal'' the 
following: ``, including criminal investigations conducted 
before formal accusation''.
    (c) Definitions.--For purposes of this section:
            (1) International tribunal for yugoslavia.--The 
        term ``International Tribunal for Yugoslavia'' means 
        the International Tribunal for the Prosecution of 
        Persons Responsible for Serious Violations of 
        International Humanitarian Law in the Territory of the 
        Former Yugoslavia, as established by United Nations 
        Security Council Resolution 827 of May 25, 1993.
            (2) International tribunal for rwanda.--The term 
        ``International Tribunal for Rwanda'' means the 
        International Tribunal for the Prosecution of Persons 
        Responsible for Genocide and Other Serious Violations 
        of International Humanitarian Law Committed in the 
        Territory of Rwanda and Rwandan Citizens Responsible 
        for Genocide and Other Such Violations Committed in the 
        Territory of Neighboring States, as established by 
        United Nations Security Council Resolution 955 of 
        November 8, 1994.
            (3) Agreement between the united states and the 
        international tribunal for yugoslavia.--The term 
        ``Agreement Between the United States and the 
        International Tribunal for Yugoslavia'' means the 
        Agreement on Surrender of Persons Between the 
        Government of the United States and the International 
        Tribunal for the Prosecution of Persons Responsible for 
        Serious Violations of International Law in the 
        Territory of the Former Yugoslavia, signed at The 
        Hague, October 5, 1994.
            (4) Agreement between the united states and the 
        international tribunal for rwanda.--The term 
        ``Agreement between the United States and the 
        International Tribunal for Rwanda'' means the Agreement 
        on Surrender of Persons Between the Government of the 
        United States and the International Tribunal for the 
        Prosecution of Persons Responsible for Genocide and 
        Other Serious Violations of International Humanitarian 
        Law Committed in the Territory of Rwanda and Rwandan 
        Citizens Responsible for Genocide and Other Such 
        Violations Committed in the Territory of Neighboring 
        States, signed at The Hague, January 24, 1995.

SEC. 1343. SEMIANNUAL REPORTS CONCERNING UNITED STATES-PEOPLE'S 
                    REPUBLIC OF CHINA JOINT DEFENSE CONVERSION 
                    COMMISSION.

    (a) Reports Required.--The Secretary of Defense shall 
submit to Congress a semiannual report on the United States-
People's Republic of China Joint Defense Conversion Commission. 
Each such report shall include the following:
            (1) A description of the extent to which the 
        activities conducted in, through, or as a result of the 
        Commission could have directly or indirectly assisted, 
        or may directly or indirectly assist, the military 
        modernization efforts of the People's Republic of 
        China.
            (2) A discussion of the activities and operations 
        of the Commission, including--
                    (A) United States funding;
                    (B) a listing of participating United 
                States officials;
                    (C) specification of meeting dates and 
                locations (prospective and retrospective);
                    (D) summary of discussions; and
                    (E) copies of any agreements reached.
            (3) A discussion of the relationship between the 
        ``defense conversion'' activities of the People's 
        Republic of China and its defense modernization 
        efforts.
            (4) A discussion of the extent to which United 
        States business activities pursued, or proposed to be 
        pursued, under the imprimatur of the Commission, or the 
        importation of western technology in general, 
        contributes to the modernization of China's military 
        industrial base, including any steps taken by the 
        United States or by United States commercial entities 
        to safeguard the technology or intellectual property 
        rights associated with any materials or information 
        transferred.
            (5) An assessment of the benefits derived by the 
        United States from its participation in the Commission, 
        including whether or to what extent United States 
        participation in the Commission has resulted or will 
        result in the following:
                    (A) Increased transparency in the current 
                and projected military budget and doctrine of 
                the People's Republic of China.
                    (B) Improved behavior and cooperation by 
                the People's Republic of China in the areas of 
                missile and nuclear proliferation.
                    (C) Increased transparency in the plans of 
                the People's Republic of China's for nuclear 
                and missile force modernization and testing.
            (6) Efforts undertaken by the Secretary of Defense 
        to--
                    (A) establish a list of enterprises 
                controlled by the People's Liberation Army, 
                including those which have been successfully 
                converted to produce products solely for 
                civilian use; and
                    (B) provide estimates of the total revenues 
                of those enterprises.
            (7) A description of current or proposed mechanisms 
        for improving the ability of the United States to track 
        the flow of revenues from the enterprises specified on 
        the list established under paragraph (6)(A).
    (b) Submittal of Reports.--A report shall be submitted 
under subsection (a) not later than August 1 of each year with 
respect to the first six months of that year and shall be 
submitted not later than February 1 of each year with respect 
to the last six months of the preceding year. The first report 
under such subsection shall be submitted not less than 60 days 
after the date of the enactment of this Act and shall apply 
with respect to the six-month period preceding the date of the 
enactment of this Act.
    (c) Final Report Upon Termination of Commission.--Upon the 
termination of the United States-People's Republic of China 
Joint Defense Conversion Commission, the Secretary of Defense 
shall submit a final report under this section covering the 
period from the end of the period covered by the last such 
report through the termination of the Commission, and 
subsection (a) shall cease to apply after the submission of 
such report.

                    TITLE XIV--ARMS CONTROL MATTERS

SEC. 1401. REVISION OF DEFINITION OF LANDMINE FOR PURPOSES OF LANDMINE 
                    EXPORT MORATORIUM.

    Section 1423(d) of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1832) is 
amended--
            (1) by redesignating paragraphs (1), (2), and (3) 
        as subparagraphs (A), (B), and (C), respectively;
            (2) in subparagraph (C), as so redesignated, by 
        striking out ``by remote control or'';
            (3) by inserting ``(1)'' before ``For purposes 
        of''; and
            (4) by adding at the end the following new 
        paragraph:
    ``(2) The term does not include command detonated 
antipersonnel land mines (such as the M18A1 `Claymore' 
mine).''.

SEC. 1402. REPORTS ON MORATORIUM ON USE BY ARMED FORCES OF 
                    ANTIPERSONNEL LANDMINES.

    Not later than April 30 of each of 1996, 1997, and 1998, 
the Chairman of the Joint Chiefs of Staff shall submit to the 
congressional defense committees a report on the projected 
effects of a moratorium on the defensive use of antipersonnel 
mines and antitank mines by the Armed Forces. The report shall 
include a discussion of the following matters:
            (1) The extent to which current doctrine and 
        practices of the Armed Forces on the defensive use of 
        antipersonnel mines and antitank mines adhere to 
        applicable international law.
            (2) The effects that a moratorium would have on the 
        defensive use of the current United States inventory of 
        remotely delivered, self-destructing antitank systems, 
        antipersonnel mines, and antitank mines.
            (3) The reliability of the self-destructing 
        antipersonnel mines and self-destructing antitank mines 
        of the United States.
            (4) The cost of clearing the antipersonnel 
        minefields currently protecting Naval Station 
        Guantanamo Bay, Cuba, and other United States 
        installations.
            (5) The cost of replacing antipersonnel mines in 
        such minefields with substitute systems such as the 
        Claymore mine, and the level of protection that would 
        be afforded by use of such a substitute.
            (6) The extent to which the defensive use of 
        antipersonnel mines and antitank mines by the Armed 
        Forces is a source of civilian casualties around the 
        world, and the extent to which the United States, and 
        the Department of Defense particularly, contributes to 
        alleviating the illegal and indiscriminate use of such 
        munitions.
            (7) The extent to which the threat to the security 
        of United States forces during operations other than 
        war and combat operations would increase as a result of 
        such a moratorium.

SEC. 1403. EXTENSION AND AMENDMENT OF COUNTER-PROLIFERATION 
                    AUTHORITIES.

    (a) One-Year Extension of Program.--Section 1505 of the 
Weapons of Mass Destruction Control Act of 1992 (title XV of 
Public Law 102-484; 22 U.S.C. 5859a) is amended--
            (1) in subsection (a), by striking out ``during 
        fiscal years 1994 and 1995'';
            (2) in subsection (e)(1), by striking out ``fiscal 
        years 1994 and 1995'' and inserting in lieu thereof ``a 
        fiscal year during which the authority of the Secretary 
        of Defense to provide assistance under this section is 
        in effect''; and
            (3) by adding at the end the following new 
        subsection:
    ``(f) Termination of Authority.--The authority of the 
Secretary of Defense to provide assistance under this section 
terminates at the close of fiscal year 1996.''.
    (b) Program Authorities.--(1) Subsections (b)(2) and (d)(3) 
of such section are amended by striking out ``the On-Site 
Inspection Agency'' and inserting in lieu thereof ``the 
Department of Defense''.
    (2) Subsection (c)(3) of such section is amended by 
striking out ``will be counted'' and all that follows and 
inserting in lieu thereof ``will be counted as discretionary 
spending in the national defense budget function (function 
050).''.
    (c) Amount of Assistance.--Subsection (d) of such section 
is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``for fiscal year 
                1994'' the first place it appears and all that 
                follows through the period at the end of the 
                second sentence and inserting in lieu thereof 
                ``for any fiscal year shall be derived from 
                amounts made available to the Department of 
                Defense for that fiscal year.''; and
                    (B) by striking out ``referred to in this 
                paragraph''; and
            (2) in paragraph (3)--
                    (A) by striking out ``may not exceed'' and 
                all that follows through ``1995''; and
                    (B) by inserting before the period at the 
                end the following: ``, may not exceed 
                $25,000,000 for fiscal year 1994, $20,000,000 
                for fiscal year 1995, or $15,000,000 for fiscal 
                year 1996''.

SEC. 1404. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC 
                    NUCLEAR DELIVERY SYSTEMS.

    (a) Sense of Congress.--It is the sense of Congress that, 
unless and until the START II Treaty enters into force, the 
Secretary of Defense should not take any action to retire or 
dismantle, or to prepare to retire or dismantle, any of the 
following strategic nuclear delivery systems:
            (1) B-52H bomber aircraft.
            (2) Trident ballistic missile submarines.
            (3) Minuteman III intercontinental ballistic 
        missiles.
            (4) Peacekeeper intercontinental ballistic 
        missiles.
    (b) Limitation on Use of Funds.--Funds available to the 
Department of Defense may not be obligated or expended during 
fiscal year 1996 for retiring or dismantling, or for preparing 
to retire or dismantle, any of the strategic nuclear delivery 
systems specified in subsection (a).

SEC. 1405. CONGRESSIONAL FINDINGS AND SENSE OF CONGRESS CONCERNING 
                    TREATY VIOLATIONS.

    (a) Reaffirmation of Prior Findings Concerning the 
Krasnoyarsk Radar.--Congress, noting its previous findings with 
respect to the large phased-array radar of the Soviet Union 
known as the ``Krasnoyarsk radar'' stated in paragraphs (1) 
through (4) of section 902(a) of the National Defense 
Authorization Act for Fiscal Years 1988 and 1989 (Public Law 
100-180; 101 Stat. 1135) (and reaffirmed in section 1006(a) of 
the National Defense Authorization Act for Fiscal Years 1990 
and 1991 (Public Law 101-189; 103 Stat. 1543)), hereby 
reaffirms those findings as follows:
            (1) The 1972 Anti-Ballistic Missile Treaty 
        prohibits each party from deploying ballistic missile 
        early warning radars except at locations along the 
        periphery of its national territory and oriented 
        outward.
            (2) The 1972 Anti-Ballistic Missile Treaty 
        prohibits each party from deploying an ABM system to 
        defend its national territory and from providing a base 
        for any such nationwide defense.
            (3) Large phased-array radars were recognized 
        during negotiation of the Anti-Ballistic Missile Treaty 
        as the critical long lead-time element of a nationwide 
        defense against ballistic missiles.
            (4) In 1983 the United States discovered the 
        construction, in the interior of the Soviet Union near 
        the town of Krasnoyarsk, of a large phased-array radar 
        that has subsequently been judged to be for ballistic 
        missile early warning and tracking.
    (b) Further Reference to 1987 Congressional Statements.--
Congress further notes that in section 902 of the National 
Defense Authorization Act for Fiscal Years 1988 and 1989 
(Public Law 100-180; 101 Stat. 1135) Congress also--
            (1) noted that the President had certified that the 
        Krasnoyarsk radar was an unequivocal violation of the 
        1972 Anti-Ballistic Missile Treaty; and
            (2) stated it to be the sense of the Congress that 
        the Soviet Union was in violation of its legal 
        obligation under that treaty.
    (c) Further Reference to 1989 Congressional Statements.--
Congress further notes that in section 1006(b) of the National 
Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189; 103 Stat. 1543) Congress also--
            (1) again noted that in 1987 the President declared 
        that radar to be a clear violation of the 1972 Anti-
        Ballistic Missile Treaty and noted that on October 23, 
        1989, the Foreign Minister of the Soviet Union conceded 
        that the Krasnoyarsk radar is a violation of the 1972 
        Anti-Ballistic Missile Treaty; and
            (2) stated it to be the sense of the Congress that 
        the Soviet Union should dismantle the Krasnoyarsk radar 
        expeditiously and without conditions and that until 
        such radar was completely dismantled it would remain a 
        clear violation of the 1972 Anti-Ballistic Missile 
        Treaty.
    (d) Additional Findings.--Congress also finds, with respect 
to the Krasnoyarsk radar, that retired Soviet General Y.V. 
Votintsev, Director of the Soviet National Air Defense Forces 
from 1967 to 1985, has publicly stated--
            (1) that he was directed by the Chief of the Soviet 
        General staff to locate the large phased-array radar at 
        Krasnoyarsk despite the recognition by Soviet 
        authorities that the location of such a radar at that 
        location would be a clear violation of the 1972 Anti-
        Ballistic Missile Treaty; and
            (2) that Marshal D.F. Ustinov, Soviet Minister of 
        Defense, threatened to relieve from duty any Soviet 
        officer who continued to object to the construction of 
        a large-phased array radar at Krasnoyarsk.
    (e) Sense of Congress Concerning Soviet Treaty 
Violations.--It is the sense of Congress that the government of 
the Soviet Union intentionally violated its legal obligations 
under the 1972 Anti-Ballistic Missile Treaty in order to 
advance its national security interests.
    (f) Sense of Congress Concerning Compliance by Russia With 
Arms Control Obligations.--In light of subsections (a) through 
(e), it is the sense of Congress that the United States should 
remain vigilant in ensuring compliance by Russia with its arms 
control obligations and should, when pursuing future arms 
control agreements with Russia, bear in mind violations of arms 
control obligations by the Soviet Union.

SEC. 1406. SENSE OF CONGRESS ON RATIFICATION OF CHEMICAL WEAPONS 
                    CONVENTION AND START II TREATY.

    (a) Findings.--Congress makes the following findings:
            (1) Proliferation of chemical or nuclear weapons 
        materials poses a danger to United States national 
        security, and the threat or use of such materials by 
        terrorists would directly threaten United States 
        citizens at home and abroad.
            (2) Events such as the March 1995 terrorist release 
        of a chemical nerve agent in the Tokyo subway, the 
        threatened use of chemical weapons during the 1991 
        Persian Gulf War, and the widespread use of chemical 
        weapons during the Iran-Iraq War of the 1980's are all 
        potent reminders of the menace posed by chemical 
        weapons, of the fact that the threat of chemical 
        weapons is not sufficiently addressed, and of the need 
        to outlaw the development, production, and possession 
        of chemical weapons.
            (3) The Chemical Weapons Convention negotiated and 
        signed by President Bush would make it more difficult 
        for would-be proliferators, including terrorists, to 
        acquire or use chemical weapons, if ratified and fully 
        implemented, as signed, by all signatories.
            (4) United States military authorities, including 
        Chairman of the Joint Chiefs of Staff General John 
        Shalikashvili, have stated that United States military 
        forces will deter and respond to chemical weapons 
        threats with a robust chemical defense and an 
        overwhelming superior conventional response, as 
        demonstrated in the Persian Gulf War, and have 
        testified in support of the ratification of the 
        Chemical Weapons Convention.
            (5) The United States intelligence community has 
        testified that the Convention will provide new and 
        important sources of information, through regular data 
        exchanges and routine and challenge inspections, to 
        improve the ability of the United States to assess the 
        chemical weapons status in countries of concern.
            (6) The Convention has not entered into force for 
        lack of the requisite number of ratifications.
            (7) Russia has signed the Convention, but has not 
        yet ratified it.
            (8) There have been reports by Russian sources of 
        continued Russian production and testing of chemical 
        weapons, including a statement by a spokesman of the 
        Russian Ministry of Defense on December 5, 1994, that 
        ``We cannot say that all chemical weapons production 
        and testing has stopped altogether.''.
            (9) The Convention will impose a legally binding 
        obligation on Russia and other nations that possess 
        chemical weapons and that ratify the Convention to 
        cease offensive chemical weapons activities and to 
        destroy their chemical weapons stockpiles and 
        production facilities.
            (10) The United States must be prepared to exercise 
        fully its rights under the Convention, including the 
        request of challenge inspections when warranted, and to 
        exercise leadership in pursuing punitive measures 
        against violators of the Convention, when warranted.
            (11) The United States should strongly encourage 
        full implementation at the earliest possible date of 
        the terms and conditions of the United States-Russia 
        bilateral chemical weapons destruction agreement signed 
        in 1990.
            (12) The START II Treaty negotiated and signed by 
        President Bush would help reduce the danger of 
        potential proliferators, including terrorists, 
        acquiring nuclear warheads and materials, and would 
        contribute to United States-Russian bilateral efforts 
        to secure and dismantle nuclear warheads, if ratified 
        and fully implemented as signed by both parties.
            (13) It is in the national security interest of the 
        United States to take effective steps to make it more 
        difficult for proliferators or would-be terrorists to 
        obtain chemical or nuclear materials for use in 
        weapons.
            (14) The President has urged prompt Senate action 
        on, and advice and consent to ratification of, the 
        START II Treaty and the Chemical Weapons Convention.
            (15) The Chairman of the Joint Chiefs of Staff has 
        testified to Congress that ratification and full 
        implementation of both treaties by all parties is in 
        the United States national interest and has strongly 
        urged prompt Senate advice and consent to their 
        ratification.
    (b) Sense of Congress.--It is the sense of Congress that 
the United States, Russia, and all other parties to the START 
II Treaty and the Chemical Weapons Convention should promptly 
ratify and fully implement, as negotiated, both treaties.

SEC. 1407. IMPLEMENTATION OF ARMS CONTROL AGREEMENTS.

    (a) Funding.--Of the amounts appropriated pursuant to 
authorizations in sections 102, 103, 104, 201, and 301, the 
Secretary of Defense may use an amount not to exceed 
$239,941,000 for implementing arms control agreements to which 
the United States is a party.
    (b) Limitation.--(1) Funds made available pursuant to 
subsection (a) for the costs of implementing an arms control 
agreement may not (except as provided in paragraph (2)) be used 
to reimburse expenses incurred by any other party to the 
agreement for which (without regard to any executive agreement 
or any policy not part of an arms control agreement)--
            (A) the other party is responsible under the terms 
        of the arms control agreement; and
            (B) the United States has no responsibility under 
        the agreement.
    (2) The limitation in paragraph (1) does not apply to a use 
of funds to carry out an arms control expenses reimbursement 
policy of the United States described in subsection (c).
    (c) Covered Arms Control Expenses Reimbursement Policies.--
Subsection (b)(2) applies to a policy of the United States to 
reimburse expenses incurred by another party to an arms control 
agreement if--
            (1) the policy does not modify any obligation 
        imposed by the arms control agreement;
            (2) the President--
                    (A) issued or approved the policy before 
                the date of the enactment of this Act; or
                    (B) entered into an agreement on the policy 
                with the government of another country or 
                approved an agreement on the policy entered 
                into by an official of the United States and 
                the government of another country; and
            (3) the President has notified the designated 
        congressional committees of the policy or the policy 
        agreement (as the case may be), in writing, at least 30 
        days before the date on which the President issued or 
        approved the policy or has entered into or approved the 
        policy agreement.
    (d) Definitions.--For the purposes of this section:
            (1) The term ``arms control agreement'' means an 
        arms control treaty or other form of international arms 
        control agreement.
            (2) The term ``executive agreement'' means an 
        international agreement entered into by the President 
        that is not authorized by law or entered into as a 
        Treaty to which the Senate has given its advice and 
        consent to ratification.
            (3) The term ``designated congressional 
        committees'' means the following:
                    (A) The Committee on Foreign Relations, the 
                Committee on Armed Services, and the Committee 
                on Appropriations of the Senate.
                    (B) The Committee on International 
                Relations, the Committee on National Security, 
                and the Committee on Appropriations of the 
                House of Representatives.

SEC. 1408. IRAN AND IRAQ ARMS NONPROLIFERATION.

    (a) Sanctions Against Transfers of Persons.--Section 
1604(a) of the Iran-Iraq Arms Non-Proliferation Act of 1992 
(title XVI of Public Law 102-484; 50 U.S.C. 1701 note) is 
amended by inserting ``to acquire chemical, biological, or 
nuclear weapons or'' before ``to acquire''.
    (b) Sanctions Against Transfers of Foreign Countries.--
Section 1605(a) of such Act is amended by inserting ``to 
acquire chemical, biological, or nuclear weapons or'' before 
``to acquire''.
    (c) Clarification of United States Assistance.--
Subparagraph (A) of section 1608(7) of such Act is amended to 
read as follows:
                    ``(A) any assistance under the Foreign 
                Assistance Act of 1961 (22 U.S.C. 2151 et 
                seq.), other than urgent humanitarian 
                assistance or medicine;''.
    (d) Notification of Certain Waivers Under MTCR 
Procedures.--Section 73(e)(2) of the Arms Export Control Act 
(22 U.S.C. 2797b(e)(2)) is amended--
            (1) by striking out ``the Congress'' and inserting 
        in lieu thereof ``the Committee on Armed Services and 
        the Committee on Foreign Relations of the Senate and 
        the Committee on National Security and the Committee on 
        International Relations of the House of 
        Representatives''; and
            (2) by striking out ``20 working days'' and 
        inserting in lieu thereof ``45 working days''.

              TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

SEC. 1501. AMENDMENTS RELATED TO RESERVE OFFICER PERSONNEL MANAGEMENT 
                    ACT.

    (a) Public Law 103-337.--The Reserve Officer Personnel 
Management Act (title XVI of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337)) is amended as 
follows:
            (1) Section 1624 (108 Stat. 2961) is amended--
                    (A) by striking out ``641'' and all that 
                follows through ``(2)'' and inserting in lieu 
                thereof ``620 is amended''; and
                    (B) by redesignating as subsection (d) the 
                subsection added by the amendment made by that 
                section.
            (2) Section 1625 (108 Stat. 2962) is amended by 
        striking out ``Section 689'' and inserting in lieu 
        thereof ``Section 12320''.
            (3) Section 1626(1) (108 Stat. 2962) is amended by 
        striking out ``(W-5)'' in the second quoted matter 
        therein and inserting in lieu thereof ``, W-5,''.
            (4) Section 1627 (108 Stat. 2962) is amended by 
        striking out ``Section 1005(b)'' and inserting in lieu 
        thereof ``Section 12645(b)''.
            (5) Section 1631 (108 Stat. 2964) is amended--
                    (A) in subsection (a), by striking out 
                ``Section 510'' and inserting in lieu thereof 
                ``Section 12102''; and
                    (B) in subsection (b), by striking out 
                ``Section 591'' and inserting in lieu thereof 
                ``Section 12201''.
            (6) Section 1632 (108 Stat. 2965) is amended by 
        striking out ``Section 593(a)'' and inserting in lieu 
        thereof ``Section 12203(a)''.
            (7) Section 1635(a) (108 Stat. 2968) is amended by 
        striking out ``section 1291'' and inserting in lieu 
        thereof ``section 1691(b)''.
            (8) Section 1671 (108 Stat. 3013) is amended--
                    (A) in subsection (b)(3), by striking out 
                ``512, and 517'' and inserting in lieu thereof 
                ``and 512''; and
                    (B) in subsection (c)(2), by striking out 
                the comma after ``861'' in the first quoted 
                matter therein.
            (9) Section 1684(b) (108 Stat. 3024) is amended by 
        striking out ``section 14110(d)'' and inserting in lieu 
        thereof ``section 14111(c)''.
    (b) Subtitle E of Title 10.--Subtitle E of title 10, United 
States Code, is amended as follows:
            (1) The tables of chapters preceding part I and at 
        the beginning of part IV are amended by striking out 
        ``Repayments'' in the item relating to chapter 1609 and 
        inserting in lieu thereof ``Repayment Programs''.
            (2)(A) The heading for section 10103 is amended to 
        read as follows:

``Sec. 10103. Basic policy for order into Federal service''.

            (B) The item relating to section 10103 in the table 
        of sections at the beginning of chapter 1003 is amended 
        to read as follows:

``10103. Basic policy for order into Federal service.''.

            (3) The table of sections at the beginning of 
        chapter 1005 is amended by striking out the third word 
        in the item relating to section 10142.
            (4) The table of sections at the beginning of 
        chapter 1007 is amended--
                    (A) by striking out the third word in the 
                item relating to section 10205; and
                    (B) by capitalizing the initial letter of 
                the sixth word in the item relating to section 
                10211.
            (5) The table of sections at the beginning of 
        chapter 1011 is amended by inserting ``Sec.'' at the 
        top of the column of section numbers.
            (6) Section 10507 is amended--
                    (A) by striking out ``section 124402(b)'' 
                and inserting in lieu thereof ``section 
                12402(b)''; and
                    (B) by striking out ``Air Forces'' and 
                inserting in lieu thereof ``Air Force''.
            (7)(A) Section 10508 is repealed.
            (B) The table of sections at the beginning of 
        chapter 1011 is amended by striking out the item 
        relating to section 10508.
            (8) Section 10542 is amended by striking out 
        subsection (d).
            (9) Section 12004(a) is amended by striking out 
        ``active-status'' and inserting in lieu thereof 
        ``active status''.
            (10) Section 12012 is amended by inserting ``the'' 
        in the section heading before the penultimate word.
            (11)(A) The heading for section 12201 is amended to 
        read as follows:

``Sec. 12201. Reserve officers: qualifications for appointment''.

            (B) The item relating to that section in the table 
        of sections at the beginning of chapter 1205 is amended 
        to read as follows:

``12201. Reserve officers: qualifications for appointment.''.

            (12)(A) The heading for section 12209 is amended to 
        read as follows:

``Sec. 12209. Officer candidates: enlisted Reserves''.

            (B) The heading for section 12210 is amended to 
        read as follows:

``Sec. 12210. Attending Physician to the Congress: reserve grade while 
                    so serving''.

            (13)(A) The headings for sections 12211, 12212, 
        12213, and 12214 are amended by inserting ``the'' after 
        ``National Guard of''
            (B) The table of sections at the beginning of 
        chapter 1205 is amended by inserting ``the'' in the 
        items relating to sections 12211, 12212, 12213, and 
        12214 after ``National Guard of''.
            (14) Section 12213(a) is amended by striking out 
        ``section 593'' and inserting in lieu thereof ``section 
        12203''.
            (15) The table of sections at the beginning of 
        chapter 1207 is amended by striking out ``promotions'' 
        in the item relating to section 12243 and inserting in 
        lieu thereof ``promotion''.
            (16) The table of sections at the beginning of 
        chapter 1209 is amended--
                    (A) in the item relating to section 12304, 
                by striking out the colon and inserting in lieu 
                thereof a semicolon; and
                    (B) in the item relating to section 12308, 
                by striking out the second, third, and fourth 
                words.
            (17) Section 12307 is amended by striking out 
        ``Ready Reserve'' in the second sentence and inserting 
        in lieu thereof ``Retired Reserve''.
            (18)(A) The table of sections at the beginning of 
        chapter 1211 is amended by inserting ``the'' in the 
        items relating to sections 12401, 12402, 12403, and 
        12404 after ``Army and Air National Guard of''.
            (B) The headings for sections 12402, 12403, and 
        12404 are amended by inserting ``the'' after ``Army and 
        Air National Guard of''
            (19) Section 12407(b) is amended--
                    (A) by striking out ``of those 
                jurisdictions'' and inserting in lieu thereof 
                ``State''; and
                    (B) by striking out ``jurisdictions'' and 
                inserting in lieu thereof ``States''.
            (20) Section 12731(f) is amended by striking out 
        ``the date of the enactment of this subsection'' and 
        inserting in lieu thereof ``October 5, 1994,''.
            (21) Section 12731a(c)(3) is amended by inserting a 
        comma after ``Defense Conversion''.
            (22) Section 14003 is amended by inserting 
        ``lists'' in the section heading immediately before the 
        colon.
            (23) The table of sections at the beginning of 
        chapter 1403 is amended by striking out ``selection 
        board'' in the item relating to section 14105 and 
        inserting in lieu thereof ``promotion board''.
            (24) The table of sections at the beginning of 
        chapter 1405 is amended--
                    (A) in the item relating to section 14307, 
                by striking out ``Numbers'' and inserting in 
                lieu thereof ``Number'';
                    (B) in the item relating to section 14309, 
                by striking out the colon and inserting in lieu 
                thereof a semicolon; and
                    (C) in the item relating to section 14314, 
                by capitalizing the initial letter of the 
                antepenultimate word.
            (25) Section 14315(a) is amended by striking out 
        ``a Reserve officer'' and inserting in lieu thereof ``a 
        reserve officer''.
            (26) Section 14317(e) is amended--
                    (A) by inserting ``Officers Ordered to 
                Active Duty in Time of War or National 
                Emergency.--'' after ``(e)''; and
                    (B) by striking out ``section 10213 or 
                644'' and inserting in lieu thereof ``section 
                123 or 10213''.
            (27) The table of sections at the beginning of 
        chapter 1407 is amended--
                    (A) in the item relating to section 14506, 
                by inserting ``reserve'' after ``Marine Corps 
                and''; and
                    (B) in the item relating to section 14507, 
                by inserting ``reserve'' after ``Removal from 
                the''; and
                    (C) in the item relating to section 14509, 
                by inserting ``in grades'' after ``reserve 
                officers''.
            (28) Section 14501(a) is amended by inserting 
        ``Officers Below the Grade of Colonel or Navy 
        Captain.--'' after ``(a)''.
            (29) The heading for section 14506 is amended by 
        inserting a comma after ``Air Force''.
            (30) Section 14508 is amended by striking out 
        ``this'' after ``from an active status under'' in 
        subsections (c) and (d).
            (31) Section 14515 is amended by striking out 
        ``inactive status'' and inserting in lieu thereof 
        ``inactive-status''.
            (32) Section 14903(b) is amended by striking out 
        ``chapter'' and inserting in lieu thereof ``title''.
            (33) The table of sections at the beginning of 
        chapter 1606 is amended in the item relating to section 
        16133 by striking out ``limitations'' and inserting in 
        lieu thereof ``limitation''.
            (34) Section 16132(c) is amended by striking out 
        ``section'' and inserting in lieu thereof ``sections''.
            (35) Section 16135(b)(1)(A) is amended by striking 
        out ``section 2131(a)'' and inserting in lieu thereof 
        ``section 16131(a)''.
            (36) Section 18236(b)(1) is amended by striking out 
        ``section 2233(e)'' and inserting in lieu thereof 
        ``section 18233(e)''.
            (37) Section 18237 is amended--
                    (A) in subsection (a), by striking out 
                ``section 2233(a)(1)'' and inserting in lieu 
                thereof ``section 18233(a)(1)''; and
                    (B) in subsection (b), by striking out 
                ``section 2233(a)'' and inserting in lieu 
                thereof ``section 18233(a)''.
    (c) Other Provisions of Title 10.--Effective as of December 
1, 1994 (except as otherwise expressly provided), and as if 
included as amendments made by the Reserve Officer Personnel 
Management Act (title XVI of Public Law 103-360) as originally 
enacted, title 10, United States Code, is amended as follows:
            (1) Section 101(d)(6)(B)(i) is amended by striking 
        out ``section 175'' and inserting in lieu thereof 
        ``section 10301''.
            (2) Section 114(b) is amended by striking out 
        ``chapter 133'' and inserting in lieu thereof ``chapter 
        1803''.
            (3) Section 115(d) is amended--
                    (A) in paragraph (1), by striking out 
                ``section 673'' and inserting in lieu thereof 
                ``section 12302'';
                    (B) in paragraph (2), by striking out 
                ``section 673b'' and inserting in lieu thereof 
                ``section 12304''; and
                    (C) in paragraph (3), by striking out 
                ``section 3500 or 8500'' and inserting in lieu 
                thereof ``section 12406''.
            (4) Section 123(a) is amended--
                    (A) by striking out ``281, 592, 1002, 1005, 
                1006, 1007, 1374, 3217, 3218, 3219, 3220, 
                3352(a) (last sentence),'', ``5414, 5457, 5458, 
                5506,'', and ``8217, 8218, 8219,''; and
                    (B) by striking out ``and 8855'' and 
                inserting in lieu thereof ``8855, 10214, 12003, 
                12004, 12005, 12007, 12202, 12213(a) (second 
                sentence), 12642, 12645, 12646, 12647, 12771, 
                12772, and 12773''.
            (5) Section 582(1) is amended by striking out 
        ``section 672(d)'' in subparagraph (B) and ``section 
        673b'' in subparagraph (D) and inserting in lieu 
        thereof ``section 12301(d)'' and ``section 12304'', 
        respectively.
            (6) Section 641(1)(B) is amended by striking out 
        ``10501'' and inserting in lieu thereof ``10502, 10505, 
        10506(a), 10506(b), 10507''.
            (7) The table of sections at the beginning of 
        chapter 39 is amended by striking out the items 
        relating to sections 687 and 690.
            (8) Sections 1053(a)(1) and 1064 are amended by 
        striking out ``chapter 67'' and inserting in lieu 
        thereof ``chapter 1223''.
            (9) Section 1063(a)(1) is amended by striking out 
        ``section 1332(a)(2)'' and inserting in lieu thereof 
        ``section 12732(a)(2)''.
            (10) Section 1074b(b)(2) is amended by striking out 
        ``section 673c'' and inserting in lieu thereof 
        ``section 12305''.
            (11) Section 1076(b)(2)(A) is amended by striking 
        out ``before the effective date of the Reserve Officer 
        Personnel Management Act'' and inserting in lieu 
        thereof ``before December 1, 1994''.
            (12) Section 1176(b) is amended by striking out 
        ``section 1332'' in the matter preceding paragraph (1) 
        and in paragraphs (1) and (2) and inserting in lieu 
        thereof ``section 12732''.
            (13) Section 1208(b) is amended by striking out 
        ``section 1333'' and inserting in lieu thereof 
        ``section 12733''.
            (14) Section 1209 is amended by striking out 
        ``section 1332'', ``section 1335'', and ``chapter 71'' 
        and inserting in lieu thereof ``section 12732'', 
        ``section 12735'', and ``section 12739'', respectively.
            (15) Section 1407 is amended--
                    (A) in subsection (c)(1) and (d)(1), by 
                striking out ``section 1331'' and inserting in 
                lieu thereof ``section 12731''; and
                    (B) in the heading for paragraph (1) of 
                subsection (d), by striking out ``chapter 67'' 
                and inserting in lieu thereof ``chapter 1223''.
            (16) Section 1408(a)(5) is amended by striking out 
        ``section 1331'' and inserting in lieu thereof 
        ``section 12731''.
            (17) Section 1431(a)(1) is amended by striking out 
        ``section 1376(a)'' and inserting in lieu thereof 
        ``section 12774(a)''.
            (18) Section 1463(a)(2) is amended by striking out 
        ``chapter 67'' and inserting in lieu thereof ``chapter 
        1223''.
            (19) Section 1482(f)(2) is amended by inserting 
        ``section'' before ``12731 of this title''.
            (20) The table of sections at the beginning of 
        chapter 533 is amended by striking out the item 
        relating to section 5454.
            (21) Section 2006(b)(1) is amended by striking out 
        ``chapter 106 of this title'' and inserting in lieu 
        thereof ``chapter 1606 of this title''.
            (22) Section 2121(c) is amended by striking out 
        ``section 3353, 5600, or 8353'' and inserting in lieu 
        thereof ``section 12207'', effective on the effective 
        date specified in section 1691(b)(1) of Public Law 103-
        337.
            (23) Section 2130a(b)(3) is amended by striking out 
        ``section 591'' and inserting in lieu thereof ``section 
        12201''.
            (24) The table of sections at the beginning of 
        chapter 337 is amended by striking out the items 
        relating to section 3351 and 3352.
            (25) Sections 3850, 6389(c), 6391(c), and 8850 are 
        amended by striking out ``section 1332'' and inserting 
        in lieu thereof ``section 12732''.
            (26) Section 5600 is repealed, effective on the 
        effective date specified in section 1691(b)(1) of 
        Public Law 103-337.
            (27) Section 5892 is amended by striking out 
        ``section 5457 or section 5458'' and inserting in lieu 
        thereof ``section 12004 or section 12005''.
            (28) Section 6410(a) is amended by striking out 
        ``section 1005'' and inserting in lieu thereof 
        ``section 12645''.
            (29) The table of sections at the beginning of 
        chapter 837 is amended by striking out the items 
        relating to section 8351 and 8352.
            (30) Section 8360(b) is amended by striking out 
        ``section 1002'' and inserting in lieu thereof 
        ``section 12642''.
            (31) Section 8380 is amended by striking out 
        ``section 524'' in subsections (a) and (b) and 
        inserting in lieu thereof ``section 12011''.
            (32) Sections 8819(a), 8846(a), and 8846(b) are 
        amended by striking out ``sections 1005 and 1006'' and 
        inserting in lieu thereof ``sections 12645 and 12646''.
            (33) Section 8819 is amended by striking out 
        ``section 1005'' and ``section 1006'' and inserting in 
        lieu thereof ``section 12645'' and ``section 12646'', 
        respectively.
    (d) Cross References in Other Defense Laws.--
            (1) Section 337(b) of the National Defense 
        Authorization Act for Fiscal Year 1995 (Public Law 103-
        337; 108 Stat. 2717) is amended by inserting before the 
        period at the end the following: ``or who after 
        November 30, 1994, transferred to the Retired Reserve 
        under section 10154(2) of title 10, United States Code, 
        without having completed the years of service required 
        under section 12731(a)(2) of such title for eligibility 
        for retired pay under chapter 1223 of such title''.
            (2) Section 525 of the National Defense 
        Authorization Act for Fiscal Years 1992 and 1993 
        (Public Law 102-190, 105 Stat. 1363) is amended by 
        striking out ``section 690'' and inserting in lieu 
        thereof ``section 12321''.
            (3) Subtitle B of title XLIV of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public 
        Law 102-484; 10 U.S.C. 12681 note) is amended--
                    (A) in section 4415, by striking out 
                ``section 1331a'' and inserting in lieu thereof 
                ``section 12731a'';
                    (B) in subsection 4416--
                            (i) in subsection (a), by striking 
                        out ``section 1331'' and inserting in 
                        lieu thereof ``section 12731'';
                            (ii) in subsection (b)--
                                    (I) by inserting ``or 
                                section 12732'' in paragraph 
                                (1) after ``under that 
                                section''; and
                                    (II) by inserting ``or 
                                12731(a)'' in paragraph (2) 
                                after ``section 1331(a)'';
                            (iii) in subsection (e)(2), by 
                        striking out ``section 1332'' and 
                        inserting in lieu thereof ``section 
                        12732''; and
                            (iv) in subsection (g), by striking 
                        out ``section 1331a'' and inserting in 
                        lieu thereof ``section 12731a''; and
                    (C) in section 4418--
                            (i) in subsection (a), by striking 
                        out ``section 1332'' and inserting in 
                        lieu thereof ``section 12732''; and
                            (ii) in subsection (b)(1)(A), by 
                        striking out ``section 1333'' and 
                        inserting in lieu thereof ``section 
                        12733''.
            (4) Title 37, United States Code, is amended--
                    (A) in section 302f(b), by striking out 
                ``section 673c of title 10'' in paragraphs (2) 
                and (3)(A) and inserting in lieu thereof 
                ``section 12305 of title 10''; and
                    (B) in section 433(a), by striking out 
                ``section 687 of title 10'' and inserting in 
                lieu thereof ``section 12319 of title 10''.
    (e) Cross References in Other Laws.--
            (1) Title 14, United States Code, is amended--
                    (A) in section 705(f), by striking out 
                ``600 of title 10'' and inserting in lieu 
                thereof ``12209 of title 10''; and
                    (B) in section 741(c), by striking out 
                ``section 1006 of title 10'' and inserting in 
                lieu thereof ``section 12646 of title 10''.
            (2) Title 38, United States Code, is amended--
                    (A) in section 3011(d)(3), by striking out 
                ``section 672, 673, 673b, 674, or 675 of title 
                10'' and inserting in lieu thereof ``section 
                12301, 12302, 12304, 12306, or 12307 of title 
                10'';
                    (B) in sections 3012(b)(1)(B)(iii) and 
                3701(b)(5)(B), by striking out ``section 268(b) 
                of title 10'' and inserting in lieu thereof 
                ``section 10143(a) of title 10'';
                    (C) in section 3501(a)(3)(C), by striking 
                out ``section 511(d) of title 10'' and 
                inserting in lieu thereof ``section 12103(d) of 
                title 10''; and
                    (D) in section 4211(4)(C), by striking out 
                ``section 672(a), (d), or (g), 673, or 673b of 
                title 10'' and inserting in lieu thereof 
                ``section 12301(a), (d), or (g), 12302, or 
                12304 of title 10''.
            (3) Section 702(a)(1) of the Soldiers' and Sailors' 
        Civil Relief Act of 1940 (50 U.S.C. App. 592(a)(1)) is 
        amended--
                    (A) by striking out ``section 672 (a) or 
                (g), 673, 673b, 674, 675, or 688 of title 10'' 
                and inserting in lieu thereof ``section 688, 
                12301(a), 12301(g), 12302, 12304, 12306, or 
                12307 of title 10''; and
                    (B) by striking out ``section 672(d) of 
                such title'' and inserting in lieu thereof 
                ``section 12301(d) of such title''.
            (4) Section 463A of the Higher Education Act of 
        1965 (20 U.S.C. 1087cc-1) is amended in subsection 
        (a)(10) by striking out ``(10 U.S.C. 2172)'' and 
        inserting in lieu thereof ``(10 U.S.C. 16302)''.
            (5) Section 179 of the National and Community 
        Service Act of 1990 (42 U.S.C. 12639) is amended in 
        subsection (a)(2)(C) by striking out ``section 216(a) 
        of title 5'' and inserting in lieu thereof ``section 
        10101 of title 10''.
    (f) Effective Dates.--
            (1) Section 1636 of the Reserve Officer Personnel 
        Management Act shall take effect on the date of the 
        enactment of this Act.
            (2) The amendments made by sections 1672(a), 
        1673(a) (with respect to chapters 541 and 549), 
        1673(b)(2), 1673(b)(4), 1674(a), and 1674(b)(7) shall 
        take effect on the effective date specified in section 
        1691(b)(1) of the Reserve Officer Personnel Management 
        Act (notwithstanding section 1691(a) of such Act).
            (3) The amendments made by this section shall take 
        effect as if included in the Reserve Officer Personnel 
        Management Act as enacted on October 5, 1994.

SEC. 1502. AMENDMENTS TO REFLECT NAME CHANGE OF COMMITTEE ON ARMED 
                    SERVICES OF THE HOUSE OF REPRESENTATIVES.

    (a) Title 10, United States Code.--Title 10, United States 
Code, is amended as follows:
            (1) Sections 503(b)(5), 520a(d), 526(d)(1), 
        619a(h)(2), 806a(b), 838(b)(7), 946(c)(1)(A), 
        1098(b)(2), 2313(b)(4), 2361(c)(1), 2371(h), 2391(c), 
        2430(b), 2432(b)(3)(B), 2432(c)(2), 2432(h)(1), 
        2667(d)(3), 2672a(b), 2687(b)(1), 4342(g), 
        7307(b)(1)(A), and 9342(g) are amended by striking out 
        ``Committees on Armed Services of the Senate and House 
        of Representatives'' and inserting in lieu thereof 
        ``Committee on Armed Services of the Senate and the 
        Committee on National Security of the House of 
        Representatives''.
            (2) Sections 178(c)(1)(A), 942(e)(5), 2350f(c), 
        7426(e), 7431(a), 7431(b)(1), 7431(c), 7438(b), 
        12302(b), 18235(a), and 18236(a) are amended by 
        striking out ``Committees on Armed Services of the 
        Senate and the House of Representatives'' and inserting 
        in lieu thereof ``Committee on Armed Services of the 
        Senate and the Committee on National Security of the 
        House of Representatives''.
            (3) Section 113(j)(1) is amended by striking out 
        ``Committees on Armed Services and Committees on 
        Appropriations of the Senate and'' and inserting in 
        lieu thereof ``Committee on Armed Services and the 
        Committee on Appropriations of the Senate and the 
        Committee on National Security and the Committee on 
        Appropriations of the''.
            (4) Section 119(g) is amended by striking out 
        paragraphs (1) and (2) and inserting in lieu thereof 
        the following:
            ``(1) the Committee on Armed Services and the 
        Committee on Appropriations, and the Defense 
        Subcommittee of the Committee on Appropriations, of the 
        Senate; and
            ``(2) the Committee on National Security and the 
        Committee on Appropriations, and the National Security 
        Subcommittee of the Committee on Appropriations, of the 
        House of Representatives.''.
            (5) Section 127(c) is amended by striking out 
        ``Committees on Armed Services and Appropriations of 
        the Senate and'' and inserting in lieu thereof 
        ``Committee on Armed Services and the Committee on 
        Appropriations of the Senate and the Committee on 
        National Security and the Committee on Appropriations 
        of''.
            (6) Section 135(e) is amended--
                    (A) by inserting ``(1)'' after ``(e)'';
                    (B) by striking out ``the Committees on 
                Armed Services and the Committees on 
                Appropriations of the Senate and House of 
                Representatives are each'' and inserting in 
                lieu thereof ``each congressional committee 
                specified in paragraph (2) is''; and
                    (C) by adding at the end the following:
    ``(2) The committees referred to in paragraph (1) are--
            ``(A) the Committee on Armed Services and the 
        Committee on Appropriations of the Senate; and
            ``(B) the Committee on National Security and the 
        Committee on Appropriations of the House of 
        Representatives.''.
            (7) Section 179(e) is amended by striking out ``to 
        the Committees on Armed Services and Appropriations of 
        the Senate and'' and inserting in lieu thereof ``to the 
        Committee on Armed Services and the Committee on 
        Appropriations of the Senate and the Committee on 
        National Security and the Committee on Appropriations 
        of the''.
            (8) Sections 401(d) and 402(d) are amended by 
        striking out ``submit to the'' and all that follows 
        through ``Foreign Affairs'' and inserting in lieu 
        thereof ``submit to the Committee on Armed Services and 
        the Committee on Foreign Relations of the Senate and 
        the Committee on National Security and the Committee on 
        International Relations''.
            (9) Section 2367(d)(2) is amended by striking out 
        ``the Committees on Armed Services and the Committees 
        on Appropriations of the Senate and'' and inserting in 
        lieu thereof ``the Committee on Armed Services and the 
        Committee on Appropriations of the Senate and the 
        Committee on National Security and the Committee on 
        Appropriations of the''.
            (10) Sections 2306b(g), 2801(c)(4), and 
        18233a(a)(1) are amended by striking out ``the 
        Committees on Armed Services and on Appropriations of 
        the Senate and'' and inserting in lieu thereof ``the 
        Committee on Armed Services and the Committee on 
        Appropriations of the Senate and the Committee on 
        National Security and the Committee on Appropriations 
        of the''.
            (11) Section 1599(e)(2) is amended--
                    (A) in subparagraph (A), by striking out 
                ``The Committees on Armed Services and 
                Appropriations'' and inserting in lieu thereof 
                ``The Committee on National Security, the 
                Committee on Appropriations,''; and
                    (B) in subparagraph (B), by striking out 
                ``The Committees on Armed Services and 
                Appropriations'' and inserting in lieu thereof 
                ``The Committee on Armed Services, the 
                Committee on Appropriations,''.
            (12) Sections 4355(a)(3), 6968(a)(3), and 
        9355(a)(3) are amended by striking out ``Armed 
        Services'' and inserting in lieu thereof ``National 
        Security''.
            (13) Section 1060(d) is amended by striking out 
        ``Committee on Armed Services and the Committee on 
        Foreign Affairs'' and inserting in lieu thereof 
        ``Committee on National Security and the Committee on 
        International Relations''.
            (14) Section 2215 is amended--
                    (A) by inserting ``(a) Certification 
                Required.--'' at the beginning of the text of 
                the section;
                    (B) by striking out ``to the Committees'' 
                and all that follows through ``House of 
                Representatives'' and inserting in lieu thereof 
                ``to the congressional committees specified in 
                subsection (b)''; and
                    (C) by adding at the end the following:
    ``(b) Congressional Committees.--The committees referred to 
in subsection (a) are--
            ``(1) the Committee on Armed Services and the 
        Committee on Appropriations of the Senate; and
            ``(2) the Committee on National Security and the 
        Committee on Appropriations of the House of 
        Representatives.''.
            (15) Section 2218 is amended--
                    (A) in subsection (j), by striking out 
                ``the Committees on Armed Services and on 
                Appropriations of the Senate and the House of 
                Representatives'' and inserting in lieu thereof 
                ``the congressional defense committees''; and
                    (B) by adding at the end of subsection (k) 
                the following new paragraph:
            ``(4) The term `congressional defense committees' 
        means--
                    ``(A) the Committee on Armed Services and 
                the Committee on Appropriations of the Senate; 
                and
                    ``(B) the Committee on National Security 
                and the Committee on Appropriations of the 
                House of Representatives.''.
            (16) Section 2342(b) is amended--
                    (A) in the matter preceding paragraph (1), 
                by striking out ``section--'' and inserting in 
                lieu thereof ``section unless--'';
                    (B) in paragraph (1), by striking out 
                ``unless''; and
                    (C) in paragraph (2), by striking out 
                ``notifies the'' and all that follows through 
                ``House of Representatives'' and inserting in 
                lieu thereof ``the Secretary submits to the 
                Committee on Armed Services and the Committee 
                on Foreign Relations of the Senate and the 
                Committee on National Security and the 
                Committee on International Relations of the 
                House of Representatives notice of the intended 
                designation''.
            (17) Section 2350a(f)(2) is amended by striking out 
        ``submit to the Committees'' and all that follows 
        through ``House of Representatives'' and inserting in 
        lieu thereof ``submit to the Committee on Armed 
        Services and the Committee on Foreign Relations of the 
        Senate and the Committee on National Security and the 
        Committee on International Relations of the House of 
        Representatives''.
            (18) Section 2366 is amended--
                    (A) in subsection (d), by striking out 
                ``the Committees on Armed Services and on 
                Appropriations of the Senate and House of 
                Representatives'' and inserting in lieu thereof 
                ``the congressional defense committees''; and
                    (B) by adding at the end of subsection (e) 
                the following new paragraph:
            ``(7) The term `congressional defense committees' 
        means--
                    ``(A) the Committee on Armed Services and 
                the Committee on Appropriations of the Senate; 
                and
                    ``(B) the Committee on National Security 
                and the Committee on Appropriations of the 
                House of Representatives.''.
            (19) Section 2399(h)(2) is amended by striking out 
        ``means'' and all the follows and inserting in lieu 
        thereof the following: ``means--
                    ``(A) the Committee on Armed Services and 
                the Committee on Appropriations of the Senate; 
                and
                    ``(B) the Committee on National Security 
                and the Committee on Appropriations of the 
                House of Representatives.''.
            (20) Section 2401(b)(1) is amended--
                    (A) in subparagraph (B), by striking out 
                ``the Committees on Armed Services and on 
                Appropriations of the Senate and'' and 
                inserting in lieu thereof ``the Committee on 
                Armed Services and the Committee on 
                Appropriations of the Senate and the Committee 
                on National Security and the Committees on 
                Appropriations of the''; and
                    (B) in subparagraph (C), by striking out 
                ``the Committees on Armed Services and on 
                Appropriations of the Senate and House of 
                Representatives'' and inserting in lieu thereof 
                ``those committees''.
            (21) Section 2403(e) is amended--
                    (A) by inserting ``(1)'' before ``Before 
                making'';
                    (B) by striking out ``shall notify the 
                Committees on Armed Services and on 
                Appropriations of the Senate and House of 
                Representatives'' and inserting in lieu thereof 
                ``shall submit to the congressional committees 
                specified in paragraph (2) notice''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(2) The committees referred to in paragraph (1) are--
            ``(A) the Committee on Armed Services and the 
        Committee on Appropriations of the Senate; and
            ``(B) the Committee on National Security and the 
        Committee on Appropriations of the House of 
        Representatives.''.
            (22) Section 2515(d) is amended--
                    (A) by striking out ``Reporting'' and all 
                that follows through ``same time'' and 
                inserting in lieu thereof ``Annual Report.--(1) 
                The Secretary of Defense shall submit to the 
                congressional committees specified in paragraph 
                (2) an annual report on the activities of the 
                Office. The report shall be submitted each year 
                at the same time''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The committees referred to in paragraph (1) are--
            ``(A) the Committee on Armed Services and the 
        Committee on Appropriations of the Senate; and
            ``(B) the Committee on National Security and the 
        Committee on Appropriations of the House of 
        Representatives.''.
            (23) Section 2662 is amended--
                    (A) in subsection (a)--
                            (i) in the matter preceding 
                        paragraph (1), by striking out ``the 
                        Committees on Armed Services of the 
                        Senate and House of Representatives'' 
                        and inserting in lieu thereof ``the 
                        Committee on Armed Services of the 
                        Senate and the Committee on National 
                        Security of the House of 
                        Representatives''; and
                            (ii) in the matter following 
                        paragraph (6), by striking out ``to be 
                        submitted to the Committees on Armed 
                        Services of the Senate and House of 
                        Representatives'';
                    (B) in subsection (b), by striking out 
                ``shall report annually to the Committees on 
                Armed Services of the Senate and the House of 
                Representatives'' and inserting in lieu thereof 
                ``shall submit annually to the congressional 
                committees named in subsection (a) a report'';
                    (C) in subsection (e), by striking out 
                ``the Committees on Armed Services of the 
                Senate and the House of Representatives'' and 
                inserting in lieu thereof ``the congressional 
                committees named in subsection (a)''; and
                    (D) in subsection (f), by striking out 
                ``the Committees on Armed Services of the 
                Senate and the House of Representatives shall'' 
                and inserting in lieu thereof ``the 
                congressional committees named in subsection 
                (a) shall''.
            (24) Section 2674(a) is amended--
                    (A) in paragraph (2), by striking out 
                ``Committees on Armed Services of the Senate 
                and the House of Representatives, the Committee 
                on Environment and Public Works of the Senate, 
                and the Committee on Public Works and 
                Transportation of the House of 
                Representatives'' and inserting in lieu thereof 
                ``congressional committees specified in 
                paragraph (3)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3) The committees referred to in paragraph (2) are--
            ``(A) the Committee on Armed Services and the 
        Committee on Environment and Public Works of the 
        Senate; and
            ``(B) the Committee on National Security and the 
        Committee on Transportation and Infrastructure of the 
        House of Representatives.''.
            (25) Section 2813(c) is amended by striking out 
        ``Committees on Armed Services and the Committees on 
        Appropriations of the Senate and House of 
        Representatives'' and inserting in lieu thereof 
        ``appropriate committees of Congress''.
            (26) Sections 2825(b)(1) and 2832(b)(2) are amended 
        by striking out ``Committees on Armed Services and the 
        Committees on Appropriations of the Senate and of the 
        House of Representatives'' and inserting in lieu 
        thereof ``appropriate committees of Congress''.
            (27) Sections 2865(e)(2) and 2866(c)(2) are amended 
        by striking out ``Committees on Armed Services and 
        Appropriations of the Senate and House of 
        Representatives'' and inserting in lieu thereof 
        ``appropriate committees of Congress''.
            (28)(A) Section 7434 of such title is amended to 
        read as follows:

``Sec. 7434. Annual report to congressional committees

    ``Not later than October 31 of each year, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives a report on the production from the naval 
petroleum reserves during the preceding calendar year.''.
            (B) The item relating to such section in the table 
        of contents at the beginning of chapter 641 is amended 
        to read as follows:
``7434. Annual report to congressional committees.''.

    (b) Title 37, United States Code.--Sections 301b(i)(2) and 
406(i) of title 37, United States Code, are amended by striking 
out ``Committees on Armed Services of the Senate and House of 
Representatives'' and inserting in lieu thereof ``Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives''.
    (c) Annual Defense Authorization Acts.--
            (1) The National Defense Authorization Act for 
        Fiscal Year 1994 (Public Law 103-160) is amended in 
        sections 2922(b) and 2925(b) (10 U.S.C. 2687 note) by 
        striking out ``Committees on Armed Services of the 
        Senate and House of Representatives'' and inserting in 
        lieu thereof ``Committee on Armed Services of the 
        Senate and the Committee on National Security of the 
        House of Representatives''.
            (2) The National Defense Authorization Act for 
        Fiscal Year 1993 (Public Law 102-484) is amended--
                    (A) in section 326(a)(5) (10 U.S.C. 2301 
                note) and section 1304(a) (10 U.S.C. 113 note), 
                by striking out ``Com- mittees on Armed 
                Services of the Senate and House of 
                Representatives'' and inserting in lieu thereof 
                ``Committee on Armed Services of the Senate and 
                the Committee on National Security of the House 
                of Representatives''; and
                    (B) in section 1505(e)(2)(B) (22 U.S.C. 
                5859a), by striking out ``the Committee on 
                Armed Services, the Committee on 
                Appropriations, the Committee on Foreign 
                Affairs, and the Committee on Energy and 
                Commerce'' and inserting in lieu thereof ``the 
                Committee on National Security, the Committee 
                on Appropriations, the Committee on 
                International Relations, and the Committee on 
                Commerce''.
            (3) Section 1097(a)(1) of the National Defense 
        Authorization Act for Fiscal Years 1992 and 1993 
        (Public Law 102-190; 22 U.S.C. 2751 note) is amended by 
        striking out ``the Committees on Armed Services and 
        Foreign Affairs'' and inserting in lieu thereof ``the 
        Committee on National Security and the Committee on 
        International Relations''.
            (4) The National Defense Authorization Act for 
        Fiscal Year 1991 (Public Law 101-510) is amended as 
        follows:
                    (A) Section 402(a) and section 1208(b)(3) 
                (10 U.S.C. 1701 note) are amended by striking 
                out ``Committees on Armed Services of the 
                Senate and the House of Representatives'' and 
                inserting in lieu thereof ``Committee on Armed 
                Services of the Senate and the Committee on 
                National Security of the House of 
                Representatives''.
                    (B) Section 1403 (50 U.S.C. 404b) is 
                amended--
                            (i) in subsection (a), by striking 
                        out ``the Committees on'' and all that 
                        follows through ``each year'' and 
                        inserting in lieu thereof ``the 
                        congressional committees specified in 
                        subsection (d) each year''; and
                            (ii) by adding at the end the 
                        following new subsection:
    ``(d) Specified Congressional Committees.--The 
congressional committees referred to in subsection (a) are the 
following:
            ``(1) The Committee on Armed Services, the 
        Committee on Appropriations, and the Select Committee 
        on Intelligence of the Senate.
            ``(2) The Committee on National Security, the 
        Committee on Appropriations, and the Permanent Select 
        Committee on Intelligence of the House of 
        Representatives.''.
                    (C) Section 1457 (50 U.S.C. 404c) is 
                amended--
                            (i) in subsection (a), by striking 
                        out ``shall submit to the'' and all 
                        that follows through ``each year'' and 
                        inserting in lieu thereof ``shall 
                        submit to the congressional committees 
                        specified in subsection (d) each 
                        year'';
                            (ii) in subsection (c)--
                                    (I) by striking out ``(1) 
                                Except as provided in paragraph 
                                (2), the President'' and 
                                inserting in lieu thereof ``The 
                                President''; and
                                    (II) by striking out 
                                paragraph (2); and
                            (iii) by adding at the end the 
                        following new subsection:
    ``(d) Specified Congressional Committees.--The 
congressional committees referred to in subsection (a) are the 
following:
            ``(1) The Committee on Armed Services and the 
        Committee on Foreign Relations of the Senate.
            ``(2) The Committee on National Security and the 
        Committee on International Relations of the House of 
        Representatives.''.
                    (D) Section 2921 (10 U.S.C. 2687 note) is 
                amended--
                            (i) in subsection (e)(3)(A), by 
                        striking out ``the Committee on Armed 
                        Services, the Committee on 
                        Appropriations, and the Defense 
                        Subcommittees'' and inserting in lieu 
                        thereof ``the Committee on National 
                        Security, the Committee on 
                        Appropriations, and the National 
                        Security Subcommittee''; and
                            (ii) in subsection (g)(2), by 
                        striking out ``the Committee on Armed 
                        Services of the Senate and House of 
                        Representatives'' and inserting in lieu 
                        thereof ``the Committee on Armed 
                        Services of the Senate and the 
                        Committee on National Security of the 
                        House of Representatives''.
            (5) Section 613(h)(1) of the National Defense 
        Authorization Act, Fiscal Year 1989 (Public Law 100-
        456; 37 U.S.C. 302 note), is amended by striking out 
        ``the Committees on Armed Services of the Senate and 
        the House of Representatives'' and inserting in lieu 
        thereof ``the Committee on Armed Services of the Senate 
        and the Committee on National Security of the House of 
        Representatives''.
            (6) Section 1412 of the Department of Defense 
        Authorization Act, 1986 (Public Law 99-145; 50 U.S.C. 
        1521), is amended in subsections (b)(4) and (k)(2), by 
        striking out ``Committees on Armed Services of the 
        Senate and House of Representatives'' and inserting in 
        lieu thereof ``Committee on Armed Services of the 
        Senate and the Committee on National Security of the 
        House of Representatives''.
            (7) Section 1002(d) of the Department of Defense 
        Authorization Act, 1985 (Public Law 98-525; 22 U.S.C. 
        1928 note), is amended by striking out ``the Committees 
        on Armed Services of the Senate and the House of 
        Representatives'' and inserting in lieu thereof ``the 
        Committee on Armed Services of the Senate, the 
        Committee on National Security of the House of 
        Representatives''.
            (8) Section 1252 of the Department of Defense 
        Authorization Act, 1984 (42 U.S.C. 248d), is amended--
                    (A) in subsection (d), by striking out 
                ``Committees on Appropriations and on Armed 
                Services of the Senate and the House of 
                Representatives'' and inserting in lieu thereof 
                ``Committee on Appropriations and the Committee 
                on Armed Services of the Senate and the 
                Committee on Appropriations and the Committee 
                on National Security of the House of 
                Representatives''; and
                    (B) in subsection (e), by striking out 
                ``Committees on Appropriations and on Armed 
                Services of the Senate and the House of 
                Representatives'' and inserting in lieu thereof 
                ``congressional committees specified in 
                subsection (d)''.
    (d) Base Closure Law.--The Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) is amended as follows:
            (1) Sections 2902(e)(2)(B)(ii) and 2908(b) are 
        amended by striking out ``Armed Services'' the first 
        place it appears and inserting in lieu thereof 
        ``National Security''.
            (2) Section 2910(2) is amended by striking out 
        ``the Committees on Armed Services and the Committees 
        on Appropriations of the Senate and of the House of 
        Representatives'' and inserting in lieu thereof ``the 
        Committee on Armed Services and the Committee on 
        Appropriations of the Senate and the Committee on 
        National Security and the Committee on Appropriations 
        of the House of Representatives''.
    (e) National Defense Stockpile.--The Strategic and Critical 
Materials Stock Piling Act is amended--
            (1) in section 6(d) (50 U.S.C. 98e(d))--
                    (A) in paragraph (1), by striking out 
                ``Committees on Armed Services of the Senate 
                and House of Representatives'' and inserting in 
                lieu thereof ``Committee on Armed Services of 
                the Senate and the Committee on National 
                Security of the House of Representatives''; and
                    (B) in paragraph (2), by striking out ``the 
                Committees on Armed Services of the Senate and 
                House of Representatives'' and inserting in 
                lieu thereof ``such congressional committees''; 
                and
            (2) in section 7(b) (50 U.S.C. 98f(b)), by striking 
        out ``Committees on Armed Services of the Senate and 
        House of Representatives'' and inserting in lieu 
        thereof ``Committee on Armed Services of the Senate and 
        the Committee on National Security of the House of 
        Representatives''.
    (f) Other Defense-Related Provisions.--
            (1) Section 8125(g)(2) of the Department of Defense 
        Appropriations Act, 1989 (Public Law 100-463; 10 U.S.C. 
        113 note), is amended by striking out ``Committees on 
        Appropriations and Armed Services of the Senate and 
        House of Representatives'' and inserting in lieu 
        thereof ``Committee on Appropriations and the Committee 
        on Armed Services of the Senate and the Committee on 
        Appropriations and the Committee on National Security 
        of the House of Representatives''.
            (2) Section 9047A of the Department of Defense 
        Appropriations Act, 1993 (Public Law 102-396; 10 U.S.C. 
        2687 note), is amended by striking out ``the Committees 
        on Appropriations and Armed Services of the House of 
        Representatives and the Senate'' and inserting in lieu 
        thereof ``the Committee on Appropriations and the 
        Committee on Armed Services of the Senate and the 
        Committee on Appropriations and the Committee on 
        National Security of the House of Representatives''.
            (3) Section 3059(c)(1) of the Defense Drug 
        Interdiction Assistance Act (subtitle A of title III of 
        Public Law 99-570; 10 U.S.C. 9441 note) is amended by 
        striking out ``Committees on Appropriations and on 
        Armed Services of the Senate and the House of 
        Representatives'' and inserting in lieu thereof 
        ``Committee on Armed Services and the Committee on 
        Appropriations of the Senate and the Committee on 
        National Security and the Committee on Appropriations 
        of the House of Representatives''.
            (4) Section 7606(b) of the Anti-Drug Abuse Act of 
        1988 (Public Law 100-690; 10 U.S.C. 9441 note) is 
        amended by striking out ``Committees on Appropriations 
        and the Committee on Armed Services of the Senate and 
        the House of Representatives'' and inserting in lieu 
        thereof ``Committee on Armed Services and the Committee 
        on Appropriations of the Senate and the Committee on 
        National Security and the Committee on Appropriations 
        of the House of Representatives''.
            (5) Section 104(d)(5) of the National Security Act 
        of 1947 (50 U.S.C. 403-4(d)(5)) is amended by striking 
        out ``Committees on Armed Services of the Senate and 
        House of Representatives'' and inserting in lieu 
        thereof ``Committee on Armed Services of the Senate and 
        the Committee on National Security of the House of 
        Representatives''.
            (6) Section 8 of the Inspector General Act of 1978 
        (5 U.S.C. App.) is amended--
                    (A) in subsection (b)(3), by striking out 
                ``Committees on Armed Services and Government 
                Operations'' and inserting in lieu thereof 
                ``Committee on National Security and the 
                Committee on Government Reform and Oversight'';
                    (B) in subsection (b)(4), by striking out 
                ``Committees on Armed Services and Governmental 
                Affairs of the Senate and the Committees on 
                Armed Services and Government Operations of the 
                House of Representatives'' and inserting in 
                lieu thereof ``congressional committees 
                specified in paragraph (3)'';
                    (C) in subsection (f)(1), by striking out 
                ``Committees on Armed Services and Government 
                Operations'' and inserting in lieu thereof 
                ``Committee on National Security and the 
                Committee on Government Reform and Oversight''; 
                and
                    (D) in subsection (f)(2), by striking out 
                ``Committees on Armed Services and Governmental 
                Affairs of the Senate and the Committees on 
                Armed Services and Government Operations of the 
                House of Representatives'' and inserting in 
                lieu thereof ``congressional committees 
                specified in paragraph (1)''.
            (7) Section 204(h)(3) of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 
        485(h)(3)) is amended by striking out ``Committees on 
        Armed Services of the Senate and of the House of 
        Representatives'' and inserting in lieu thereof 
        ``Committee on Armed Services of the Senate and the 
        Committee on National Security of the House of 
        Representatives''.

SEC. 1503. MISCELLANEOUS AMENDMENTS TO TITLE 10, UNITED STATES CODE.

    (a) Subtitle A.--Subtitle A of title 10, United States 
Code, is amended as follows:
            (1) Section 113(i)(2)(B) is amended by striking out 
        ``the five years covered'' and all that follows through 
        ``section 114(g)'' and inserting in lieu thereof ``the 
        period covered by the future-years defense program 
        submitted to Congress during that year pursuant to 
        section 221''.
            (2) Section 136(c) is amended by striking out 
        ``Comptroller'' and inserting in lieu thereof ``Under 
        Secretary of Defense (Comptroller)''.
            (3) Section 526 is amended--
                    (A) in subsection (a), by striking out 
                paragraphs (1), (2), and (3) and inserting in 
                lieu thereof the following:
            ``(1) For the Army, 302.
            ``(2) For the Navy, 216.
            ``(3) For the Air Force, 279.'';
                    (B) by striking out subsection (b);
                    (C) by redesignating subsections (c), (d), 
                and (e) as subsections (b), (c), and (d);
                    (D) in subsection (b), as so redesignated, 
                by striking out ``that are applicable on and 
                after October 1, 1995''; and
                    (E) in paragraph (2)(B) of subsection (c), 
                as redesignated by subparagraph (C), is 
                amended--
                            (i) by striking out ``the'' after 
                        ``in the'';
                            (ii) by inserting ``to'' after 
                        ``reserve component, or''; and
                            (iii) by inserting ``than'' after 
                        ``in a grade other''.
            (4) Section 528(a) is amended by striking out 
        ``after September 30, 1995,''.
            (5) Section 573(a)(2) is amended by striking out 
        ``active duty list'' and inserting in lieu thereof 
        ``active-duty list''.
            (6) Section 661(d)(2) is amended--
                    (A) in subparagraph (B), by striking out 
                ``Until January 1, 1994'' and all that follows 
                through ``each position so designated'' and 
                inserting in lieu thereof ``Each position 
                designated by the Secretary under subparagraph 
                (A)'';
                    (B) in subparagraph (C), by striking out 
                ``the second sentence of''; and
                    (C) by striking out subparagraph (D).
            (7) Section 706(c)(1) is amended by striking out 
        ``section 4301 of title 38'' and inserting in lieu 
        thereof ``chapter 43 of title 38''.
            (8) Section 1059 is amended by striking out 
        ``subsection (j)'' in subsections (c)(2) and (g)(3) and 
        inserting in lieu thereof ``subsection (k)''.
            (9) Section 1060a(f)(2)(B) is amended by striking 
        out ``(as defined in section 101(a)(22) of the 
        Immigration and Nationality Act (8 U.S.C. 
        1101(a)(22)))'' and inserting in lieu thereof ``, as 
        determined in accordance with the Immigration and 
        Nationality Act (8 U.S.C. 1101 et seq.)''.
            (10) Section 1151 is amended--
                    (A) in subsection (b), by striking out 
                ``(20 U.S.C. 2701 et seq.)'' in paragraphs 
                (2)(A) and (3)(A) and inserting in lieu thereof 
                ``(20 U.S.C. 6301 et seq.)''; and
                    (B) in subsection (e)(1)(B), by striking 
                out ``not later than one year after the date of 
                the enactment of the National Defense 
                Authorization Act for Fiscal Year 1995'' and 
                inserting in lieu thereof ``not later than 
                October 5, 1995''.
            (11) Section 1152(g)(2) is amended by striking out 
        ``not later than 180 days after the date of the 
        enactment of the National Defense Authorization Act for 
        Fiscal Year 1995'' and inserting in lieu thereof ``not 
        later than April 3, 1994,''.
            (12) Section 1177(b)(2) is amended by striking out 
        ``provison of law'' and inserting in lieu thereof 
        ``provision of law''.
            (13) The heading for chapter 67 is amended by 
        striking out ``NONREGULAR'' and inserting in lieu 
        thereof ``NON-REGULAR''.
            (14) Section 1598(a)(2)(A) is amended by striking 
        out ``2701'' and inserting in lieu thereof ``6301''.
            (15) Section 1745(a) is amended by striking out 
        ``section 4107(d)'' both places it appears and 
        inserting in lieu thereof ``section 4107(b)''.
            (16) Section 1746(a) is amended--
                    (A) by striking out ``(1)'' before ``The 
                Secretary of Defense''; and
                    (B) by redesignating subparagraphs (A) and 
                (B) as paragraphs (1) and (2), respectively.
            (17) Section 2006(b)(2)(B)(ii) is amended by 
        striking out ``section 1412 of such title'' and 
        inserting in lieu thereof ``section 3012 of such 
        title''.
            (18) Section 2011(a) is amended by striking out 
        ``to'' and inserting in lieu thereof ``To''.
            (19) Section 2194(e) is amended by striking out 
        ``(20 U.S.C. 2891(12))'' and inserting in lieu thereof 
        ``(20 U.S.C. 8801)''.
            (20) Sections 2217(b) and 2220(a)(2) are amended by 
        striking out ``Comptroller of the Department of 
        Defense'' and inserting in lieu thereof ``Under 
        Secretary of Defense (Comptroller)''.
            (21) Section 2401(c)(2) is amended by striking out 
        ``pursuant to'' and all that follows through 
        ``September 24, 1983,''.
            (22) Section 2410f(b) is amended by striking out 
        ``For purposes of'' and inserting in lieu thereof 
        ``In''.
            (23) Section 2410j(a)(2)(A) is amended by striking 
        out ``2701'' and inserting in lieu thereof ``6301''.
            (24) Section 2457(e) is amended by striking out 
        ``title III of the Act of March 3, 1933 (41 U.S.C. 
        10a),'' and inserting in lieu thereof ``the Buy 
        American Act (41 U.S.C. 10a)''.
            (25) Section 2465(b)(3) is amended by striking out 
        ``under contract'' and all that follows through the 
        period and inserting in lieu thereof ``under contract 
        on September 24, 1983.''.
            (26) Section 2471(b) is amended--
                    (A) in paragraph (2), by inserting ``by'' 
                after ``as determined''; and
                    (B) in paragraph (3), by inserting ``of'' 
                after ``arising out''.
            (27) Section 2524(e)(4)(B) is amended by inserting 
        a comma before ``with respect to''.
            (28) The heading of section 2525 is amended by 
        capitalizing the initial letter of the second, fourth, 
        and fifth words.
            (29) Chapter 152 is amended by striking out the 
        table of subchapters at the beginning and the headings 
        for subchapters I and II.
            (30) Section 2534(c) is amended by capitalizing the 
        initial letter of the third and fourth words of the 
        subsection heading.
            (31) The table of sections at the beginning of 
        subchapter I of chapter 169 is amended by adding a 
        period at the end of the item relating to section 2811.
    (b) Other Subtitles.--Subtitles B, C, and D of title 10, 
United States Code, are amended as follows:
            (1) Sections 3022(a)(1), 5025(a)(1), and 8022(a)(1) 
        are amended by striking out ``Comptroller of the 
        Department of Defense'' and inserting in lieu thereof 
        ``Under Secretary of Defense (Comptroller)''.
            (2) Section 6241 is amended by inserting ``or'' at 
        the end of paragraph (2).
            (3) Section 6333(a) is amended by striking out the 
        first period after ``section 1405'' in formula C in the 
        table under the column designated ``Column 2''.
            (4) The item relating to section 7428 in the table 
        of sections at the beginning of chapter 641 is amended 
        by striking out ``Agreement'' and inserting in lieu 
        thereof ``Agreements''.
            (5) The item relating to section 7577 in the table 
        of sections at the beginning of chapter 649 is amended 
        by striking out ``Officers'' and inserting in lieu 
        thereof ``officers''.
            (6) The center heading for part IV in the table of 
        chapters at the beginning of subtitle D is amended by 
        inserting a comma after ``SUPPLY''.

SEC. 1504. MISCELLANEOUS AMENDMENTS TO ANNUAL DEFENSE AUTHORIZATION 
                    ACTS.

    (a) Public Law 103-337.--Effective as of October 5, 1994, 
and as if included therein as enacted, the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337) is 
amended as follows:
            (1) Section 322(1) (108 Stat. 2711) is amended by 
        striking out ``Service'' in both sets of quoted matter 
        and inserting in lieu thereof ``Services''.
            (2) Section 531(g)(2) (108 Stat. 2758) is amended 
        by inserting ``item relating to section 1034 in the'' 
        after ``The''.
            (3) Section 541(c)(1) is amended--
                    (A) in subparagraph (B), by inserting a 
                comma after ``chief warrant officer''; and
                    (B) in the matter after subparagraph (C), 
                by striking out ``this''.
            (4) Section 721(f)(2) (108 Stat. 2806) is amended 
        by striking out ``revaluated'' and inserting in lieu 
        thereof ``reevaluated''.
            (5) Section 722(d)(2) (108 Stat. 2808) is amended 
        by striking out ``National Academy of Science'' and 
        inserting in lieu thereof ``National Academy of 
        Sciences''.
            (6) Section 904(d) (108 Stat. 2827) is amended by 
        striking out ``subsection (c)'' the first place it 
        appears and inserting in lieu thereof ``subsection 
        (b)''.
            (7) Section 1202 (108 Stat. 2882) is amended--
                    (A) by striking out ``(title XII of Public 
                Law 103-60'' and inserting in lieu thereof 
                ``(title XII of Public Law 103-160''; and
                    (B) in paragraph (2), by inserting ``in the 
                first sentence'' before ``and inserting in lieu 
                thereof''.
            (8) Section 1312(a)(2) (108 Stat. 2894) is amended 
        by striking out ``adding at the end'' and inserting in 
        lieu thereof ``inserting after the item relating to 
        section 123a''.
            (9) Section 2813(c) (108 Stat. 3055) is amended by 
        striking out ``above paragraph (1)'' both places it 
        appears and inserting in lieu thereof ``preceding 
        subparagraph (A)''.
    (b) Public Law 103-160.--The National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160) is amended in 
section 1603(d) (22 U.S.C. 2751 note)--
            (1) in the matter preceding paragraph (1), by 
        striking out the second comma after ``Not later than 
        April 30 of each year'';
            (2) in paragraph (4), by striking out 
        ``contributes'' and inserting in lieu thereof 
        ``contribute''; and
            (3) in paragraph (5), by striking out ``is'' and 
        inserting in lieu thereof ``are''.
    (c) Public Law 102-484.--The National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102-484) is amended as 
follows:
            (1) Section 326(a)(5) (106 Stat. 2370; 10 U.S.C. 
        2301 note) is amended by inserting ``report'' after 
        ``each''.
            (2) Section 3163(1)(E) is amended by striking out 
        ``paragraphs (1) through (4)'' and inserting in lieu 
        thereof ``subparagraphs (A) through (D)''.
            (3) Section 4403(a) (10 U.S.C. 1293 note) is 
        amended by striking out ``through 1995'' and inserting 
        in lieu thereof ``through fiscal year 1999''.
    (d) Public Law 102-190.--Section 1097(d) of the National 
Defense Authorization Act for Fiscal Years 1992 and 1993 
(Public Law 102-190; 105 Stat. 1490) is amended by striking out 
``the Federal Republic of Germany, France'' and inserting in 
lieu thereof ``France, Germany''.

SEC. 1505. MISCELLANEOUS AMENDMENTS TO OTHER LAWS.

    (a) Officer Personnel Act of 1947.--Section 437 of the 
Officer Personnel Act of 1947 is repealed.
    (b) Title 5, United States Code.--Title 5, United States 
Code, is amended--
            (1) in section 8171--
                    (A) in subsection (a), by striking out 
                ``903(3)'' and inserting in lieu thereof 
                ``903(a)'';
                    (B) in subsection (c)(1), by inserting 
                ``section'' before ``39(b)''; and
                    (C) in subsection (d), by striking out 
                ``(33 U.S.C. 18 and 21, respectively)'' and 
                inserting in lieu thereof ``(33 U.S.C. 918 and 
                921)'';
            (2) in sections 8172 and 8173, by striking out 
        ``(33 U.S.C. 2(2))'' and inserting in lieu thereof 
        ``(33 U.S.C. 902(2))''; and
            (3) in section 8339(d)(7), by striking out ``Court 
        of Military Appeals'' and inserting in lieu thereof 
        ``Court of Appeals for the Armed Forces''.
    (c) Public Law 90-485.--Effective as of August 13, 1968, 
and as if included therein as originally enacted, section 1(6) 
of Public Law 90-485 (82 Stat. 753) is amended--
            (1) by striking out the close quotation marks after 
        the end of clause (4) of the matter inserted by the 
        amendment made by that section; and
            (2) by adding close quotation marks at the end.
    (d) Title 37, United States Code.--Section 406(b)(1)(E) of 
title 37, United States Code, is amended by striking out ``of 
this paragraph''.
    (e) Base Closure Laws.--(1) The Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) is amended--
            (A) in section 2905(b)(1)(C), by striking out ``of 
        the Administrator to grant approvals and make 
        determinations under section 13(g) of the Surplus 
        Property Act of 1944 (50 U.S.C. App. 1622(g))'' and 
        inserting in lieu thereof ``to dispose of surplus 
        property for public airports under sections 47151 
        through 47153 of title 49, United States Code'';
            (B) in section 2906(d)(1), by striking out 
        ``section 204(b)(4)(C)'' and inserting in lieu thereof 
        ``section 204(b)(7)(C)''; and
            (C) in section 2910--
                    (i) by designating the second paragraph 
                (10), as added by section 2(b) of the Base 
                Closure Community Redevelopment and Homeless 
                Assistance Act of 1994 (Public Law 103-421; 108 
                Stat. 4352), as paragraph (11); and
                    (ii) in such paragraph, as so designated, 
                by striking out ``section 501(h)(4) of the 
                Stewart B. McKinney Homeless Assistance Act (42 
                U.S.C. 11411(h)(4))'' and inserting in lieu 
                thereof ``section 501(i)(4) of the Stewart B. 
                McKinney Homeless Assistance Act (42 U.S.C. 
                11411(i)(4))''.
    (2) Section 2921(d)(1) of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 
U.S.C. 2687 note) is amended by striking out ``section 
204(b)(4)(C)'' and inserting in lieu thereof ``section 
204(b)(7)(C)''.
    (3) Section 204 of the Defense Authorization Amendments and 
Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 
2687 note) is amended--
            (A) in subsection (b)(1)(C), by striking out ``of 
        the Administrator to grant approvals and make 
        determinations under section 13(g) of the Surplus 
        Property Act of 1944 (50 U.S.C. App. 1622(g))'' and 
        inserting in lieu thereof ``to dispose of surplus 
        property for public airports under sections 47151 
        through 47153 of title 49, United States Code''; and
            (B) in subsection (b)(7)(A)(i), by striking out 
        ``paragraph (3)'' and inserting in lieu thereof 
        ``paragraphs (3) through (6)''.
    (f) Public Law 103-421.--Section 2(e)(5) of Public Law 103-
421 (108 Stat. 4354) is amended--
            (1) by striking out ``(A)'' after ``(5)''; and
            (2) by striking out ``clause'' in subparagraph 
        (B)(iv) and inserting in lieu thereof ``clauses''.
    (g) Atomic Energy Act.--Section 123a. of the Atomic Energy 
Act (42 U.S.C. 2153a.) is amended by striking out ``144b., or 
144d.'' and inserting ``, 144b., or 144d.''.

SEC. 1506. COORDINATION WITH OTHER AMENDMENTS.

    For purposes of applying amendments made by provisions of 
this Act other than provisions of this title, this title shall 
be treated as having been enacted immediately before the other 
provisions of this Act.

TITLE XVI--CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE AND FIREARMS 
                                 SAFETY

SEC. 1601. SHORT TITLE.

    This title may be cited as the ``Corporation for the 
Promotion of Rifle Practice and Firearms Safety Act''.

         Subtitle A--Establishment and Operation of Corporation

SEC. 1611. ESTABLISHMENT OF THE CORPORATION.

    (a) Establishment.--There is established a private, 
nonprofit corporation to be known as the ``Corporation for the 
Promotion of Rifle Practice and Firearms Safety'' (in this 
title referred to as the ``Corporation'').
    (b) Private, Nonprofit Status.--(1) The Corporation shall 
not be considered to be a department, agency, or 
instrumentality of the Federal Government. An officer or 
employee of the Corporation shall not be considered to be an 
officer or employee of the Federal Government.
    (2) The Corporation shall be operated in a manner and for 
purposes that qualify the Corporation for exemption from 
taxation under section 501(a) of the Internal Revenue Code of 
1986 as an organization described in section 501(c)(3) of such 
Code.
    (c) Board of Directors.--(1) The Corporation shall have a 
Board of Directors consisting of not less than nine members.
    (2) The Board of Directors may adopt bylaws, policies, and 
procedures for the Corporation and may take any other action 
that the Board of Directors considers necessary for the 
management and operation of the Corporation.
    (3) Each member of the Board of Directors shall serve for a 
term of two years. Members of the Board of Directors are 
eligible for reappointment.
    (4) A vacancy on the Board of Directors shall be filled by 
a majority vote of the remaining members of the Board.
    (5) The Secretary of the Army shall appoint the initial 
Board of Directors. Four of the members of the initial Board of 
Directors, to be designated by the Secretary at the time of 
appointment, shall (notwithstanding paragraph (3)) serve for a 
term of one year.
    (d) Director of Civilian Marksmanship.--(1) The Board of 
Directors shall appoint an individual to serve as the Director 
of Civilian Marksmanship.
    (2) The Director shall be responsible for the performance 
of the daily operations of the Corporation and the functions 
described in section 1612.

SEC. 1612. CONDUCT OF CIVILIAN MARKSMANSHIP PROGRAM.

    (a) Functions.--The Corporation shall have responsibility 
for the overall supervision, oversight, and control of the 
Civilian Marksmanship Program, pursuant to the transfer of the 
program under subsection (d), including the performance of the 
following:
            (1) The instruction of citizens of the United 
        States in marksmanship.
            (2) The promotion of practice and safety in the use 
        of firearms, including the conduct of matches and 
        competitions in the use of those firearms.
            (3) The award to competitors of trophies, prizes, 
        badges, and other insignia.
            (4) The provision of security and accountability 
        for all firearms, ammunition, and other equipment under 
        the custody and control of the Corporation.
            (5) The issue, loan, or sale of firearms, 
        ammunition, supplies, and appliances under section 
        1614.
            (6) The procurement of necessary supplies, 
        appliances, clerical services, other related services, 
        and labor to carry out the Civilian Marksmanship 
        Program.
    (b) Priority for Youth Activities.--In carrying out the 
Civilian Marksmanship Program, the Corporation shall give 
priority to activities that benefit firearms safety, training, 
and competition for youth and that reach as many youth 
participants as possible.
    (c) Access to Surplus Property.--(1) The Corporation may 
obtain surplus property and supplies from the Defense 
Reutilization Marketing Service to carry out the Civilian 
Marksmanship Program.
    (2) Any transfer of property and supplies to the 
Corporation under paragraph (1) shall be made without cost to 
the Corporation.
    (d) Transfer of Civilian Marksmanship Program to 
Corporation.--(1) The Secretary of the Army shall provide for 
the transition of the Civilian Marksmanship Program, as defined 
in section 4308(e) of title 10, United States Code (as such 
section was in effect on the day before the date of the 
enactment of this Act), from conduct by the Department of the 
Army to conduct by the Corporation. The transition shall be 
completed not later than September 30, 1996.
    (2) To carry out paragraph (1), the Secretary shall provide 
such assistance and take such action as is necessary to 
maintain the viability of the program and to maintain the 
security of firearms, ammunition, and other property that are 
transferred or reserved for transfer to the Corporation under 
section 1615, 1616, or 1621.

SEC. 1613. ELIGIBILITY FOR PARTICIPATION IN CIVILIAN MARKSMANSHIP 
                    PROGRAM.

    (a) Certification Requirement.--(1) Before a person may 
participate in any activity sponsored or supported by the 
Corporation, the person shall be required to certify by 
affidavit the following:
            (A) The person has not been convicted of any 
        Federal or State felony or violation of section 922 of 
        title 18, United States Code.
            (B) The person is not a member of any organization 
        that advocates the violent overthrow of the United 
        States Government.
    (2) The Director of Civilian Marksmanship may require any 
person to attach to the person's affidavit a certificationfrom 
the appropriate State or Federal law enforcement agency for purposes of 
paragraph (1)(A).
    (b) Ineligibility Resulting From Certain Convictions.--A 
person who has been convicted of a Federal or State felony or a 
violation of section 922 of title 18, United States Code, shall 
not be eligible to participate in any activity sponsored or 
supported by the Corporation through the Civilian Marksmanship 
Program.
    (c) Authority To Limit Participation.--The Director of 
Civilian Marksmanship may limit participation as necessary to 
ensure--
            (1) quality instruction in the use of firearms;
            (2) the safety of participants; and
            (3) the security of firearms, ammunition, and 
        equipment.

SEC. 1614. ISSUANCE, LOAN, AND SALE OF FIREARMS AND AMMUNITION BY THE 
                    CORPORATION.

    (a) Issuance and Loan.--For purposes of training and 
competition, the Corporation may issue or loan, with or without 
charges to recover administrative costs, caliber .22 rimfire 
and caliber .30 surplus rifles, caliber .22 and .30 ammunition, 
air rifles, targets, and other supplies and appliances 
necessary for activities related to the Civilian Marksmanship 
Program to the following:
            (1) Organizations affiliated with the Corporation 
        that provide training in the use of firearms to youth.
            (2) The Boy Scouts of America.
            (3) 4-H Clubs.
            (4) Future Farmers of America.
            (5) Other youth-oriented organizations.
    (b) Sales.--(1) The Corporation may sell at fair market 
value caliber .22 rimfire and caliber .30 surplus rifles, 
caliber .22 and .30 ammunition, air rifles, repair parts, and 
accouterments to organizations affiliated with the Corporation 
that provide training in the use of firearms.
    (2) Subject to subsection (e), the Corporation may sell at 
fair market value caliber .22 rimfire and caliber .30 surplus 
rifles, ammunition, targets, repair parts and accouterments, 
and other supplies and appliances necessary for target practice 
to citizens of the United States over 18 years of age who are 
members of a gun club affiliated with the Corporation. In 
addition to any other requirement, the Corporation shall 
establish procedures to obtain a criminal records check of the 
person with appropriate Federal and State law enforcement 
agencies.
    (c) Limitations on Sales.--(1) The Corporation may not 
offer for sale any repair part designed to convert any firearm 
to fire in a fully automatic mode.
    (2) The Corporation may not sell rifles, ammunition, or any 
other item available for sale to individuals under the Civilian 
Marksmanship Program to a person who has been convicted of a 
felony or a violation of section 922 of title 18, United States 
Code.
    (d) Oversight and Accountability.--The Corporation shall be 
responsible for ensuring adequate oversight and accountability 
of all firearms issued or loaned under this section. The 
Corporation shall prescribe procedures for the security of 
issued or loaned firearms in accordance with Federal, State, 
and local laws.
    (e) Applicability of Other Law.--(1) Subject to paragraph 
(2), sales under subsection (b)(2) are subject to applicable 
Federal, State, and local laws.
    (2) Paragraphs (1), (2), (3), and (5) of section 922(a) of 
title 18, United States Code, do not apply to the shipment, 
transportation, receipt, transfer, sale, issuance, loan, or 
delivery by the Corporation of any item that the Corporation is 
authorized to issue, loan, sell, or receive under this title.

SEC. 1615. TRANSFER OF FIREARMS AND AMMUNITION FROM THE ARMY TO THE 
                    CORPORATION.

    (a) Transfers Required.--The Secretary of the Army shall, 
in accordance with subsection (b), transfer to the Corporation 
all firearms and ammunition that on the day before the date of 
the enactment of this Act are under the control of the Director 
of the Civilian Marksmanship Program, including--
            (1) all firearms on loan to affiliated clubs and 
        State associations;
            (2) all firearms in the possession of the Civilian 
        Marksmanship Support Detachment; and
            (3) all M-1 Garand and caliber .22 rimfire rifles 
        stored at Anniston Army Depot, Anniston, Alabama.
    (b) Time for Transfer.--The Secretary shall transfer 
firearms and ammunition under subsection (a) as and when 
necessary to enable the Corporation--
            (1) to issue or loan such items in accordance with 
        section 1614(a); or
            (2) to sell such items to purchasers in accordance 
        with section 1614(b).
    (c) Parts.--The Secretary may make available to the 
Corporation any part from a rifle designated to be 
demilitarized in the inventory of the Department of the Army.
    (d) Vesting of Title in Transferred Items.--Title to an 
item transferred to the Corporation under this section shall 
vest in the Corporation--
            (1) upon the issuance of the item to a recipient 
        eligible under section 1614(a) to receive the item; or
            (2) immediately before the Corporation delivers the 
        item to a purchaser of the item in accordance with a 
        contract for a sale of the item that is authorized 
        under section 1614(b).
    (e) Costs of Transfers.--Any transfer of firearms, 
ammunition, or parts to the Corporation under this section 
shall be made without cost to the Corporation, except that the 
Corporation shall assume the cost of preparation and 
transportation of firearms and ammunition transferred under 
this section.

SEC. 1616. RESERVATION BY THE ARMY OF FIREARMS AND AMMUNITION FOR THE 
                    CORPORATION.

    (a) Reservation of Firearms and Ammunition.--The Secretary 
of the Army shall reserve for the Corporation the following:
            (1) All firearms referred to in section 1615(a).
            (2) Ammunition for such firearms.
            (3) All M-16 rifles used to support the small arms 
        firing school that are held by the Department of the 
        Army on the date of the enactment of this Act.
            (4) Any parts from, and accessories and 
        accouterments for, surplus caliber .30 and caliber .22 
        rimfire rifles.
    (b) Storage of Firearms and Ammunition.--Firearms stored at 
Anniston Army Depot, Anniston, Alabama, before the date of the 
enactment of this Act and used for the Civilian Marksmanship 
Program shall remain at that facility, or another storage 
facility designated by the Secretary of the Army, without cost 
to the Corporation, until the firearms are issued, loaned, or 
sold by, or otherwise transferred to, the Corporation.
    (c) Limitation on Demilitarization of M-1 Rifles.--After 
the date of the enactment of this Act, the Secretary may not 
demilitarize any M-1 Garand rifle in the inventory of the Army 
unless that rifle is determined by the Defense Logistics Agency 
to be unserviceable.
    (d) Exception for Transfers to Federal and State Agencies 
for Counterdrug Purposes.--The requirement specified in 
subsection (a) does not supersede the authority provided in 
section 1208 of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (Public Law 101-189; 10 U.S.C. 372 
note).

SEC. 1617. ARMY LOGISTICAL SUPPORT FOR THE PROGRAM.

    (a) Logistical Support.--The Secretary of the Army shall 
provide logistical support to the Civilian Marksmanship Program 
and for competitions and other activities conducted by the 
Corporation. The Corporation shall reimburse the Secretary for 
incremental direct costs incurred in providing such support. 
Such reimbursements shall be credited to the appropriations 
account of the Department of the Army that is charged to 
provide such support.
    (b) Reserve Component Personnel.--The Secretary shall 
provide, without cost to the Corporation, for the use of 
members of the National Guard and Army Reserve to support the 
National Matches as part of the performance of annual training 
pursuant to titles 10 and 32, United States Code.
    (c) Use of Department of Defense Facilities for National 
Matches.--The National Matches may continue to be held at those 
Department of Defense facilities at which the National Matches 
were held before the date of the enactment of this Act.
    (d) Regulations.--The Secretary shall prescribe regulations 
to carry out this section.

SEC. 1618. GENERAL AUTHORITIES OF THE CORPORATION.

    (a) Donations and Fees.--(1) The Corporation may solicit, 
accept, hold, use, and dispose of donations of money, property, 
and services received by gift, devise, bequest, or otherwise.
    (2) The Corporation may impose, collect, and retain such 
fees as are reasonably necessary to cover the direct and 
indirect costs of the Corporation to carry out the Civilian 
Marksmanship Program.
    (3) Amounts collected by the Corporation under the 
authority of this subsection, including the proceeds from the 
sale of firearms, ammunition, targets, and other supplies and 
appliances, may be used only to support the Civilian 
Marksmanship Program.
    (b) Corporate Seal.--The Corporation may adopt, alter, and 
use a corporate seal, which shall be judicially noticed.
    (c) Contracts.--The Corporation may enter into contracts, 
leases, agreements, or other transactions.
    (d) Obligations and Expenditures.--The Corporation may 
determine the character of, and necessity for, its obligations 
and expenditures and the manner in which they shall be 
incurred, allowed, and paid and may incur, allow, and pay such 
obligations and expenditures.
    (e) Related Authority.--The Corporation may take such other 
actions as are necessary or appropriate to carry out the 
authority provided in this section.

SEC. 1619. DISTRIBUTION OF CORPORATE ASSETS IN EVENT OF DISSOLUTION.

    (a) Distribution.--If the Corporation dissolves, then--
            (1) upon the dissolution of the Corporation, title 
        to all firearms stored at Anniston Army Depot, 
        Anniston, Alabama, on the date of the dissolution, all 
        M-16 rifles that are transferred to the Corporation 
        under section 1615(a)(2), that are referred to in 
        section 1616(a)(3), or that are otherwise under the 
        control of the Corporation, and all trophies received 
        by the Corporation from the National Board for the 
        Promotion of Rifle Practice as of such date, shall vest 
        in the Secretary of the Army, and the Secretary shall 
        have the immediate right to the possession of such 
        items;
            (2) assets of the Corporation, other than assets 
        described in paragraph (1), may be distributed by the 
        Corporation to an organization that--
                    (A) is exempt from taxation under section 
                501(a) of the Internal Revenue Code of 1986 as 
                an organization described in section 501(c)(3) 
                of such Code; and
                    (B) performs functions similar to the 
                functions described in section 1612(a); and
            (3) all assets of the Corporation that are not 
        distributed pursuant to paragraphs (1) and (2) shall be 
        sold, and the proceeds from the sale of such assets 
        shall be deposited in the Treasury.
    (b) Prohibition.--Assets of the Corporation that are 
distributed pursuant to the authority of subsection (a) may not 
be distributed to an individual.

                  Subtitle B--Transitional Provisions

SEC. 1621. TRANSFER OF FUNDS AND PROPERTY TO THE CORPORATION.

    (a) Funds.--(1) On the date of the submission of a 
certification in accordance with section 1623 or, if earlier, 
October 1, 1996, the Secretary of the Army shall transfer to 
the Corporation--
            (A) the amounts that are available to the National 
        Board for the Promotion of Rifle Practice from sales 
        programs and fees collected in connection with 
        competitions sponsored by the Board; and
            (B) all funds that are in the nonappropriated fund 
        account known as the National Match Fund.
    (2) The funds transferred under paragraph (1)(A) shall be 
used to carry out the Civilian Marksmanship Program.
    (3) Transfers under paragraph (1)(B) shall be made without 
cost to the Corporation.
    (b) Property.--The Secretary of the Army shall, as soon as 
practicable, transfer to the Corporation the following:
            (1) All automated data equipment, all other office 
        equipment, targets, target frames, vehicles, and all 
        other property under the control of the Director of 
        Civilian Marksmanship and the Civilian Marksmanship 
        Support Detachment on the day before the date of the 
        enactment of this Act (other than property to which 
        section 1615(a) applies).
            (2) Title to property under the control of the 
        National Match Fund on such day.
            (3) All supplies and appliances under the control 
        of the Director of the Civilian Marksmanship Program on 
        such day.
    (c) Offices.--The Corporation may use the office space of 
the Office of the Director of Civilian Marksmanship until the 
date on which the Secretary of the Army completes the transfer 
of the Civilian Marksmanship Program to the Corporation. The 
Corporation shall assume control of the leased property 
occupied as of the date of the enactment of this Act by the 
Civilian Marksmanship Support Detachment, located at the Erie 
Industrial Park, Port Clinton, Ohio.
    (d) Costs of Transfers.--Any transfer of items to the 
Corporation under this section shall be made without cost to 
the Corporation.

SEC. 1622. CONTINUATION OF ELIGIBILITY FOR CERTAIN CIVIL SERVICE 
                    BENEFITS FOR FORMER FEDERAL EMPLOYEES OF CIVILIAN 
                    MARKSMANSHIP PROGRAM.

    (a) Continuation of Eligibility.--Notwithstanding any other 
provision of law, a Federal employee who is employed by the 
Department of Defense to support the Civilian Marksmanship 
Program as of the day before the date of the transfer of the 
Program to the Corporation and is offered employment by the 
Corporation as part of the transition described in section 
1612(d) may, if the employee becomes employed by the 
Corporation, continue to be eligible during continuous 
employment with the Corporation for the Federal health, 
retirement, and similar benefits (including life insurance) for 
which the employee would have been eligible had the employee 
continued to be employed by the Department of Defense. The 
employer's contribution for such benefits shall be paid by the 
Corporation.
    (b) Regulations.--The Director of the Office of Personnel 
Management shall prescribe regulations to carry out subsection 
(a).

SEC. 1623. CERTIFICATION OF COMPLETION OF TRANSITION.

    (a) Certification Requirement.--Upon completion of the 
appointment of the Board of Directors for the Corporation under 
section 1611(c)(5) and of the transition required under section 
1612(d), the Secretary of the Army shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a 
certification of the completion of such actions.
    (b) Publication of Certification.--The Secretary shall take 
such actions as are necessary to ensure that the certification 
is published in the Federal Register promptly after the 
submission of the certification under subsection (a).

SEC. 1624. REPEAL OF AUTHORITY FOR CONDUCT OF CIVILIAN MARKSMANSHIP 
                    PROGRAM BY THE ARMY.

    (a) Repeals.--(1) Sections 4307, 4308, 4310, and 4311 of 
title 10, United States Code, are repealed.
    (2) The table of sections at the beginning of chapter 401 
of such title is amended by striking out the items relating to 
sections 4307, 4308, 4310, and 4311.
    (b) Conforming Amendments.--(1) Section 4313 of title 10, 
United States Code, is amended--
            (A) by striking out subsection (b); and
            (B) in subsection (a)--
                    (i) by striking out ``(a) Junior 
                Competitors.--'' and inserting in lieu thereof 
                ``(a) Allowances for Participation of Junior 
                Competitors.--''; and
                    (ii) in paragraph (3), by striking out 
                ``(3) For the purposes of this subsection'' and 
                inserting in lieu thereof ``(b) Junior 
                Competitor Defined.--For the purposes of 
                subsection (a)''.
    (2) Section 4316 of such title is amended by striking out 
``, including fees charged and amounts collected pursuant to 
subsections (b) and (c) of section 4308,''.
    (3) Section 925(a)(2)(A) of title 18, United States Code, 
is amended by inserting after ``section 4308 of title 10'' the 
following: ``before the repeal of such section by section 
1624(a) of the Corporation for the Promotion of Rifle Practice 
and Firearms Safety Act''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on the earlier of--
            (1) the date on which the Secretary of the Army 
        submits a certification in accordance with section 
        1623; or
            (2) October 1, 1996.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 1996''.

                            TITLE XXI--ARMY

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(1), the Secretary of the Army may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:

                     Army: Inside the United States                     
------------------------------------------------------------------------
                                      Installation or                   
              State                       location            Amount    
------------------------------------------------------------------------
Alabama..........................  Fort Rucker..........      $5,900,000
                                   Redstone Arsenal.....      $5,000,000
Arizona..........................  Fort Huachuca........     $16,000,000
California.......................  Fort Irwin...........     $25,500,000
                                   Presidio of San            $3,000,000
                                    Francisco.                          
Colorado.........................  Fort Carson..........     $30,850,000
District of Columbia.............  Fort McNair..........     $13,500,000
Georgia..........................  Fort Benning.........     $37,900,000
                                   Fort Gordon..........      $5,750,000
                                   Fort Stewart.........      $8,400,000
Hawaii...........................  Schofield Barracks...     $30,000,000
Kansas...........................  Fort Riley...........      $7,000,000
Kentucky.........................  Fort Campbell........     $10,000,000
                                   Fort Knox............      $5,600,000
New Jersey.......................  Picatinny Arsenal....      $5,500,000
New Mexico.......................  White Sands Missile        $2,050,000
                                    Range.                              
New York.........................  Fort Drum............      $8,800,000
                                   United States              $8,300,000
                                    Military Academy.                   
                                   Watervliet Arsenal...        $680,000
North Carolina...................  Fort Bragg...........     $29,700,000
Oklahoma.........................  Fort Sill............     $14,300,000
South Carolina...................  Naval Weapons                        
                                    Station, Charleston.     $25,700,000
                                   Fort Jackson.........     $32,000,000
Texas............................  Fort Hood............     $32,500,000
                                   Fort Bliss...........     $56,900,000
                                   Fort Sam Houston.....      $7,000,000
Virginia.........................  Fort Eustis..........     $16,400,000
Washington.......................  Fort Lewis...........     $32,100,000
CONUS Classified.................  Classified Location..      $1,900,000
                                                         ---------------
                                     Total:.............    $478,230,000
                                                                        
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(2), the Secretary of the Army may acquire real property 
and carry out military construction projects for the locations 
outside the United States, and in the amounts, set forth in the 
following table:

                     Army: Outside the United States                    
------------------------------------------------------------------------
                                      Installation or                   
             Country                      location            Amount    
------------------------------------------------------------------------
Korea............................  Camp Casey...........      $4,150,000
                                   Camp Hovey...........     $13,500,000
                                   Camp Pelham..........      $5,600,000
                                   Camp Stanley.........      $6,800,000
                                   Yongsan..............      $4,500,000
Overseas Classified..............  Classified Location..     $48,000,000
Worldwide........................  Host Nation Support..     $20,000,000
                                                         ---------------
                                     Total:.............    $102,550,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may construct 
or acquire family housing units (including land acquisition) at 
the installations, for the purposes, and in the amounts set 
forth in the following table:

                                              Army: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
Kentucky................................  Fort Knox.................  150 units.................     $19,000,000
New York................................  United States Military                                                
                                           Academy, West Point......  119 units.................     $16,500,000
Virginia................................  Fort Lee..................  135 units.................     $19,500,000
Washington..............................  Fort Lewis................  84 units..................     $10,800,000
                                                                                                 ---------------
                                                                        Total:..................     $65,800,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
family housing units in an amount not to exceed $2,000,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2104(a)(5)(A), the Secretary of the 
Army may improve existing military family housing in an amount 
not to exceed $48,856,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Subject to subsection (c), funds are 
hereby authorized to be appropriated for fiscal years beginning 
after September 30, 1995, for military construction, land 
acquisition, and military family housing functions of the 
Department of the Army in the total amount of $2,147,427,000 as 
follows:
            (1) For military construction projects inside the 
        United States authorized by section 2101(a), 
        $478,230,000.
            (2) For military construction projects outside the 
        United States authorized by section 2101(b), 
        $102,550,000.
            (3) For unspecified minor military construction 
        projects authorized by section 2805 of title 10, United 
        States Code, $9,000,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $34,194,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvements of 
                military family housing and facilities, 
                $116,656,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $1,337,596,000.
            (6) For the Homeowners Assistance Program, as 
        authorized by section 2832 of title 10, United States 
        Code, $75,586,000, to remain available until expended.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2101 of this Act may not exceed the total amount 
authorized to be appropriated under paragraphs (1) and (2) of 
subsection (a).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (6) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $6,385,000, which 
represents the combination of project savings resulting from 
favorable bids, reduced overhead costs, and cancellations due 
to force structure changes.

                            TITLE XXII--NAVY

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(1), and, in the case of the project described in 
section 2204(b)(2), other amounts appropriated pursuant to 
authorizations enacted after this Act for that project, the 
Secretary of the Navy may acquire real property and carry out 
military construction projects for the installations and 
locations inside the United States, and in the amounts, set 
forth in the following table:

                     Navy: Inside the United States                     
------------------------------------------------------------------------
                                      Installation or                   
              State                       location            Amount    
------------------------------------------------------------------------
California.......................  Marine Corps Air-                    
                                    Ground Combat                       
                                    Center, Twentynine                  
                                    Palms...............      $2,490,000
                                   Marine Corps Base,                   
                                    Camp Pendleton......     $27,584,000
                                   Naval Command,                       
                                    Control, and Ocean                  
                                    Surveillance Center,                
                                    San Diego...........      $3,170,000
                                   Naval Air Station,                   
                                    Lemoore.............      $7,600,000
                                   Naval Air Station,                   
                                    North Island........     $99,150,000
                                   Naval Air Warfare                    
                                    Center Weapons                      
                                    Division, China Lake      $3,700,000
                                   Naval Air Warfare                    
                                    Center Weapons                      
                                    Division, Point Mugu      $1,300,000
                                   Naval Construction                   
                                    Batallion Center,                   
                                    Port Hueneme........     $16,700,000
                                   Naval Station, San                   
                                    Diego...............     $19,960,000
Florida..........................  Naval School                         
                                    Explosive Ordnance                  
                                    Disposal, Eglin Air                 
                                    Force Base..........     $16,150,000
                                   Naval Technical                      
                                    Training Center,                    
                                    Corry Station,                      
                                    Pensacola...........      $2,565,000
Georgia..........................  Strategic Weapons                    
                                    Facility, Atlantic,                 
                                    Kings Bay...........      $2,450,000
Hawaii...........................  Honolulu Naval                       
                                    Computer and                        
                                    Telecommunications                  
                                    Area, Master Station                
                                    Eastern Pacific.....      $1,980,000
                                   Intelligence Center                  
                                    Pacific, Pearl                      
                                    Harbor..............      $2,200,000
                                   Naval Submarine Base,                
                                    Pearl Harbor........     $22,500,000
Illinois.........................  Naval Training                       
                                    Center, Great Lakes.     $12,440,000
Indiana..........................  Crane Naval Surface                  
                                    Warfare Center......      $3,300,000
Maryland.........................  Naval Academy,                       
                                    Annapolis...........      $3,600,000
New Jersey.......................  Naval Air Warfare                    
                                    Center Aircraft                     
                                    Division, Lakehurst.      $1,700,000
North Carolina...................  Marine Corps Air                     
                                    Station, Cherry                     
                                    Point...............     $11,430,000
                                   Marine Corps Air                     
                                    Station, New River..     $14,650,000
                                   Marine Corps Base,                   
                                    Camp LeJeune........     $59,300,000
Pennsylvania.....................  Philadelphia Naval                   
                                    Shipyard............      $6,000,000
South Carolina...................  Marine Corps Air                     
                                    Station, Beaufort...     $15,000,000
Texas............................  Naval Air Station,                   
                                    Corpus Christi......      $4,400,000
                                   Naval Air Station,                   
                                    Kingsville..........      $2,710,000
                                   Naval Station,                       
                                    Ingleside...........      $2,640,000
Virginia.........................  Fleet and Industrial                 
                                    Supply Center,                      
                                    Williamsburg........      $8,390,000
                                   Henderson Hall,                      
                                    Arlington...........      $1,900,000
                                   Marine Corps Combat                  
                                    Development Command,                
                                    Quantico............      $3,500,000
                                   Naval Hospital,                      
                                    Portsmouth..........      $9,500,000
                                   Naval Station,                       
                                    Norfolk.............     $10,580,000
                                   Naval Weapons                        
                                    Station, Yorktown...      $1,300,000
Washington.......................  Naval Undersea                       
                                    Warfare Center                      
                                    Division, Keyport...      $5,300,000
                                   Puget Sound Naval                    
                                    Shipyard, Bremerton.     $19,870,000
West Virginia....................  Naval Security Group                 
                                    Detachment..........      $7,200,000
CONUS Classified.................  Classified Locations.      $1,200,000
                                                         ---------------
                                     Total:.............    $435,409,000
                                                                        
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(2), the Secretary of the Navy may acquire real property 
and carry out military construction projects for the 
installations and locations outside the United States, and in 
the amounts, set forth in the following table:

                     Navy: Outside the United States                    
------------------------------------------------------------------------
                                      Installation or                   
             Country                      location            Amount    
------------------------------------------------------------------------
Guam.............................  Naval Computer and                   
                                    Telecommunications                  
                                    Area, Master Station                
                                    Western Pacific.....      $2,250,000
                                   Navy Public Works                    
                                    Center, Guam........     $16,180,000
Italy............................  Naval Air Station,                   
                                    Sigonella...........     $12,170,000
                                   Naval Support                        
                                    Activity, Naples....     $24,950,000
Puerto Rico......................  Naval Security Group                 
                                    Activity, Sabana                    
                                    Seca................      $2,200,000
                                   Naval Station,                       
                                    Roosevelt Roads.....     $11,500,000
                                                         ---------------
                                     Total..............     $69,250,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may construct 
or acquire family housing units (including land acquisition) at 
the installations, for the purposes, and in the amounts set 
forth in the following table:

                                              Navy: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
California..............................  Marine Corps Base, Camp                                               
                                           Pendleton................  138 units.................     $20,000,000
                                          Marine Corps Base, Camp                                               
                                           Pendleton................  Community Center..........      $1,438,000
                                          Marine Corps Base, Camp                                               
                                           Pendleton................  Housing Office............        $707,000
                                          Naval Air Station, Lemoore  240 units.................     $34,900,000
                                          Pacific Missile Test                                                  
                                           Center, Point Mugu.......  Housing Office............      $1,020,000
                                          Public Works Center, San                                              
                                           Diego....................  346 units.................     $49,310,000
Hawaii..................................  Naval Complex, Oahu.......  252 units.................     $48,400,000
Maryland................................  Naval Air Test Center,                                                
                                           Patuxent River...........  Warehouse.................        $890,000
                                          US Naval Academy,                                                     
                                           Annapolis................  Housing Office............        $800,000
North Carolina..........................  Marine Corps Air Station,                                             
                                           Cherry Point.............  Community Center..........      $1,003,000
Pennsylvania............................  Navy Ships Parts Control                                              
                                           Center, Mechanicsburg....  Housing Office............        $300,000
Puerto Rico.............................  Naval Station, Roosevelt                                              
                                           Roads....................  Housing Office............        $710,000
Virginia................................  Naval Surface Warfare                                                 
                                           Center, Dahlgren.........  Housing Office............        $520,000
                                          Public Works Center,                                                  
                                           Norfolk..................  320 units.................     $42,500,000
                                          Public Works Center,                                                  
                                           Norfolk..................  Housing Office............      $1,390,000
West Virginia...........................  Security Group Naval                                                  
                                           Detachment, Sugar Grove..   23 units.................      $3,590,000
                                                                                                 ---------------
                                                                        Total:..................    $207,478,000
----------------------------------------------------------------------------------------------------------------


    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$24,390,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2204(a)(5)(A), the Secretary of the 
Navy may improve existing military family housing units in an 
amount not to exceed $290,831,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Subject to subsection (c), funds are 
hereby authorized to be appropriated for fiscal years beginning 
after September 30, 1995, for military construction, land 
acquisition, and military family housing functions of the 
Department of the Navy in the total amount of $2,119,317,000 as 
follows:
            (1) For military construction projects inside the 
        United States authorized by section 2201(a), 
        $427,709,000.
            (2) For military construction projects outside the 
        United States authorized by section 2201(b), 
        $69,250,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $7,200,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $50,515,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $522,699,000.
                    (B) For support of military housing 
                (including functions described in section 2833 
                of title 10, United States Code), 
                $1,048,329,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2201 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a); and
            (2) $7,700,000 (the balance of the amount 
        authorized under section 2201(a) for the construction 
        of a bachelor enlisted quarters at the Naval 
        Construction Batallion Center, Port Hueneme, 
        California).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (5) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $6,385,000, which 
represents the combination of project savings resulting from 
favorable bids, reduced overhead costs, and cancellations due 
to force structure changes.

SEC. 2205. REVISION OF FISCAL YEAR 1995 AUTHORIZATION OF APPROPRIATIONS 
                    TO CLARIFY AVAILABILITY OF FUNDS FOR LARGE ANECHOIC 
                    CHAMBER FACILITY, PATUXENT RIVER NAVAL WARFARE 
                    CENTER, MARYLAND.

    Section 2204(a) of the Military Construction Authorization 
Act for Fiscal Year 1995 (division B of Public Law 103-337; 108 
Stat. 3033) is amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``$1,591,824,000'' and inserting in lieu 
        thereof ``$1,601,824,000''; and
            (2) by adding at the end the following:
            ``(6) For the construction of the large anechoic 
        chamber facility at the Patuxent River Naval Warfare 
        Center, Aircraft Division, Maryland, authorized by 
        section 2201(a) of the Military Construction 
        Authorization Act for Fiscal Year 1993 (division B of 
        Public Law 102-484; 106 Stat. 2590), $10,000,000.''.

SEC. 2206. AUTHORITY TO CARRY OUT LAND ACQUISITION PROJECT, HAMPTON 
                    ROADS, VIRGINIA.

    The table in section 2201(a) of the Military Construction 
Authorization Act for Fiscal Year 1993 (division B of Public 
Law 102-484; 106 Stat. 2589) is amended--
            (1) in the item relating to Damneck, Fleet Combat 
        Training Center, Virginia, by striking out 
        ``$19,427,000'' in the amount column and inserting in 
        lieu thereof ``$14,927,000''; and
            (2) by inserting after the item relating to 
        Damneck, Fleet Combat Training Center, Virginia, the 
        following new item:


------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                 Hampton Roads..........      $4,500,000
------------------------------------------------------------------------

SEC. 2207. ACQUISITION OF LAND, HENDERSON HALL, ARLINGTON, VIRGINIA.

    (a) Authority To Acquire.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(1), the Secretary of the Navy may acquire all right, 
title, and interest of any party in and to a parcel of real 
property, including an abandoned mausoleum, consisting of 
approximately 0.75 acres and located in Arlington, Virginia, 
the site of Henderson Hall.
    (b) Demolition of Mausoleum.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(1), the Secretary may--
            (1) demolish the mausoleum located on the parcel 
        acquired under subsection (a); and
            (2) provide for the removal and disposition in an 
        appropriate manner of the remains contained in the 
        mausoleum.
    (c) Authority To Design Public Works Facility.--Using 
amounts appropriated pursuant to the authorization of 
appropriations in section 2204(a)(1), the Secretary may obtain 
architectural and engineering services and construction design 
for a warehouse and office facility for the Marine Corps to be 
constructed on the property acquired under subsection (a).
    (d) Description of Property.--The exact acreage and legal 
description of the real property authorized to be acquired 
under subsection (a) shall be determined by a survey that is 
satisfactory to the Secretary. The cost of the survey shall be 
borne by the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the acquisition under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2208. ACQUISITION OR CONSTRUCTION OF MILITARY FAMILY HOUSING IN 
                    VICINITY OF SAN DIEGO, CALIFORNIA.

    (a) Authority To Use Litigation Proceeds.--Upon final 
settlement in the case of Rossmoor Liquidating Trust against 
United States, in the United States District Court for the 
Central District of California (Case No. CV 82-0956 LEW (Px)), 
the Secretary of the Treasury shall deposit in a separate 
account any funds paid to the United States in settlement of 
such case. At the request of the Secretary of the Navy, the 
Secretary of the Treasury shall make available amounts in the 
account to the Secretary of the Navy solely for the acquisition 
or construction of military family housing, including the 
acquisition of land necessary for such acquisition or 
construction, for members of the Armed Forces and their 
dependents stationed in, or in the vicinity of, San Diego, 
California. In using amounts in the account, the Secretary of 
the Navy may use the authorities provided in subchapter IV of 
chapter 169 of title 10, United States Code, as added by 
section 2801 of this Act.
    (b) Units Authorized.--Not more than 150 military family 
housing units may be acquired or constructed with funds 
referred to in subsection (a). The units authorized by this 
subsection are in addition to any other units of military 
family housing authorized to be acquired or constructed in, or 
in the vicinity of, San Diego, California.
    (c) Payment of Excess Into Treasury.--The Secretary of the 
Treasury shall deposit into the Treasury as miscellaneous 
receipts funds referred to in subsection (a) that have not been 
obligated for construction under this section within four years 
after receipt thereof.
    (d) Limitation.--The Secretary may not enter into any 
contract for the acquisition or construction of military family 
housing under this section until after the expiration of the 
21-day period beginning on the day after the day on which the 
Secretary transmits to the congressional defense committees a 
report containing the details of such contract.
    (e) Repeal of Existing Authority.--Section 2848 of the 
Military Construction Authorization Act for Fiscal Years 1990 
and 1991 (division B of Public Law 101-189; 103 Stat. 1666) is 
repealed.

                         TITLE XXIII--AIR FORCE

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
                    PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(1), and, in the case of the project described in 
section 2304(b)(2), other amounts appropriated pursuant to 
authorizations enacted after this Act for that project, the 
Secretary of the Air Force may acquire real property and carry 
out military construction projects for the installations and 
locations inside the United States, and in the amounts, set 
forth in the following table:

                   Air Force: Inside the United States                  
------------------------------------------------------------------------
                                      Installation or                   
              State                       location            Amount    
------------------------------------------------------------------------
Alabama..........................  Maxwell Air Force          $5,200,000
                                    Base.                               
Alaska...........................  Eielson Air Force                    
                                    Base................      $7,850,000
                                   Elmendorf Air Force                  
                                    Base................      $9,100,000
                                   Tin City Long Range                  
                                    RADAR Site..........      $2,500,000
Arizona..........................  Davis-Monthan Air          $4,800,000
                                    Force Base.                         
                                   Luke Air Force Base..      $5,200,000
Arkansas.........................  Little Rock Air Force      $2,500,000
                                    Base.                               
California.......................  Beale Air Force Base.      $7,500,000
                                   Edwards Air Force         $33,800,000
                                    Base.                               
                                   Travis Air Force Base     $26,700,000
                                   Vandenberg Air Force       $6,000,000
                                    Base.                               
Colorado.........................  Buckley Air National       $5,500,000
                                    Guard Base.                         
                                   Peterson Air Force         $4,390,000
                                    Base.                               
                                   US Air Force Academy.     $12,874,000
Delaware.........................  Dover Air Force Base.      $5,500,000
District of Columbia.............  Bolling Air Force         $12,100,000
                                    Base.                               
Florida..........................  Cape Canaveral Air         $1,600,000
                                    Force Station.                      
                                   Eglin Air Force Base.     $13,500,000
                                   Tyndall Air Force          $1,200,000
                                    Base.                               
Georgia..........................  Moody Air Force Base.     $25,190,000
                                   Robins Air Force Base     $12,400,000
Hawaii...........................  Hickam Air Force Base     $10,700,000
Idaho............................  Mountain Home Air         $18,650,000
                                    Force Base.                         
Illinois.........................  Scott Air Force Base.     $12,700,000
Kansas...........................  McConnell Air Force        $9,450,000
                                    Base.                               
Louisiana........................  Barksdale Air Force        $2,500,000
                                    Base.                               
Maryland.........................  Andrews Air Force         $12,886,000
                                    Base.                               
Mississippi......................  Columbus Air Force         $1,150,000
                                    Base.                               
                                   Keesler Air Force          $6,500,000
                                    Base.                               
Missouri.........................  Whiteman Air Force        $24,600,000
                                    Base.                               
Nevada...........................  Nellis Air Force Base     $17,500,000
New Jersey.......................  McGuire Air Force         $16,500,000
                                    Base.                               
New Mexico.......................  Cannon Air Force Base     $13,420,000
                                   Holloman Air Force         $6,000,000
                                    Base.                               
                                   Kirtland Air Force         $9,156,000
                                    Base.                               
North Carolina...................  Pope Air Force Base..      $8,250,000
                                   Seymour Johnson Air        $5,530,000
                                    Force Base.                         
North Dakota.....................  Grand Forks Air Force     $14,800,000
                                    Base.                               
                                   Minot Air Force Base.      $1,550,000
Ohio.............................  Wright Patterson Air       $4,100,000
                                    Force Base.                         
Oklahoma.........................  Altus Air Force Base.      $4,800,000
                                   Tinker Air Force Base     $11,100,000
South Carolina...................  Charleston Air Force      $12,500,000
                                    Base.                               
                                   Shaw Air Force Base..      $1,300,000
South Dakota.....................  Ellsworth Air Force        $7,800,000
                                    Base.                               
Tennessee........................  Arnold Air Force Base      $5,000,000
Texas............................  Dyess Air Force Base.      $5,400,000
                                   Goodfellow Air Force       $1,000,000
                                    Base.                               
                                   Kelly Air Force Base.      $3,244,000
                                   Laughlin Air Force         $1,400,000
                                    Base.                               
                                   Randolph Air Force         $3,100,000
                                    Base.                               
                                   Sheppard Air Force         $1,500,000
                                    Base.                               
Utah.............................  Hill Air Force Base..      $8,900,000
Virginia.........................  Langley Air Force          $1,000,000
                                    Base.                               
Washington.......................  Fairchild Air Force       $15,700,000
                                    Base.                               
                                   McChord Air Force          $9,900,000
                                    Base.                               
Wyoming..........................  F.E. Warren Air Force      $9,000,000
                                    Base.                               
CONUS Classified.................  Classified Location..        $700,000
                                                         ---------------
                                     Total:.............    $504,690,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(2), the Secretary of the Air Force may acquire real 
property and may carry out military construction projects for 
the installations and locations outside the United States, and 
in the amounts, set forth in the following table:

                  Air Force: Outside the United States                  
------------------------------------------------------------------------
                                      Installation or                   
             Country                      location            Amount    
------------------------------------------------------------------------
Germany..........................  Spangdahlem Air Base.      $8,380,000
                                   Vogelweh Annex.......      $2,600,000
Greece...........................  Araxos Radio Relay         $1,950,000
                                    Site.                               
Italy............................  Aviano Air Base......      $2,350,000
                                   Ghedi Radio Relay          $1,450,000
                                    Site.                               
Turkey...........................  Ankara Air Station...      $7,000,000
                                   Incirlik Air Base....      $4,500,000
United Kingdom...................  Lakenheath Royal Air                 
                                    Force Base..........      $1,820,000
                                   Mildenhall Royal Air       $2,250,000
                                    Force Base.                         
Overseas Classified..............  Classified Location..     $17,100,000
                                                         ---------------
                                     Total:.............     $49,400,000
                                                                        
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2304(a)(5)(A), the Secretary of the Air Force may 
construct or acquire family housing units (including land 
acquisition) at the installations, for the purposes, and in the 
amounts set forth in the following table:

                                            Air Force: Family Housing                                           
----------------------------------------------------------------------------------------------------------------
              State/Country                      Installation                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Elmendorf Air Force Base..  Housing Office/Maintenance                
                                                                       Facility.................      $3,000,000
Arizona.................................  Davis-Monthan Air Force                                               
                                           Base.....................  80 units..................      $9,498,000
Arkansas................................  Little Rock Air Force Base  Replace 1 General Officer                 
                                                                       Quarters.................        $210,000
California..............................  Beale Air Force Base......  Family Housing Office.....        $842,000
                                          Edwards Air Force Base....  127 units.................     $20,750,000
                                          Vandenberg Air Force Base.  Family Housing Office.....        $900,000
                                          Vandenberg Air Force Base.  143 units.................     $20,200,000
Colorado................................  Peterson Air Force Base...  Family Housing Office.....        $570,000
District of Columbia....................  Bolling Air Force Base....  32 units..................      $4,100,000
Florida.................................  Eglin Air Force Base......  Family Housing Office.....        $500,000
                                          Eglin Auxiliary Field 9...  Family Housing Office.....        $880,000
                                          MacDill Air Force Base....  Family Housing Office.....        $646,000
                                          Patrick Air Force Base....  70 units..................      $7,947,000
                                          Tyndall Air Force Base....  82 units..................      $9,800,000
Georgia.................................  Moody Air Force Base......  1 Officer & 1 General                     
                                                                       Officer Quarter..........        $513,000
                                          Robins Air Force Base.....  83 units..................      $9,800,000
Guam....................................  Andersen Air Force Base...  Housing Maintenance                       
                                                                       Facility.................      $1,700,000
Idaho...................................  Mountain Home Air Force                                               
                                           Base.....................  Housing Management                        
                                                                       Facility.................        $844,000
Kansas..................................  McConnell Air Force Base..  39 units..................      $5,193,000
Louisiana...............................  Barksdale Air Force Base..  62 units..................     $10,299,000
Massachusetts...........................  Hanscom Air Force Base....  32 units..................      $4,900,000
Mississippi.............................  Keesler Air Force Base....  98 units..................      $9,300,000
Missouri................................  Whiteman Air Force Base...  72 units..................      $9,948,000
Nevada..................................  Nellis Air Force Base.....  102 units.................     $16,357,000
New Mexico..............................  Holloman Air Force Base...  1 General Officer Quarters        $225,000
                                          Kirtland Air Force Base...  105 units.................     $11,000,000
North Carolina..........................  Pope Air Force Base.......  104 units.................      $9,984,000
                                          Seymour Johnson Air Force                                             
                                           Base.....................  1 General Officer Quarters        $204,000
South Carolina..........................  Shaw Air Force Base.......  Housing Maintenance                       
                                                                       Facility.................        $715,000
Texas...................................  Dyess Air Force Base......  Housing Maintenance                       
                                                                       Facility.................        $580,000
                                          Lackland Air Force Base...  67 units..................      $6,200,000
                                          Sheppard Air Force Base...  Management Office.........        $500,000
                                          Sheppard Air Force Base...  Housing Maintenance                       
                                                                       Facility.................        $600,000
Turkey..................................  Incirlik Air Base.........  150 units.................     $10,146,000
Washington..............................  McChord Air Force Base....  50 units..................      $9,504,000
                                                                                                 ---------------
                                                                        Total:..................    $198,355,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(5)(A), the Secretary of the Air Force may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$8,989,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2304(a)(5)(A), the Secretary of the 
Air Force may improve existing military family housing units in 
an amount not to exceed $90,959,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Subject to subsection (c), funds are 
hereby authorized to be appropriated for fiscal years beginning 
after September 30, 1995, for military construction, land 
acquisition, and military family housing functions of the 
Department of the Air Force in the total amount of 
$1,735,086,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2301(a), 
        $504,690,000.
            (2) For military construction projects outside the 
        United States authorized by section 2301(b), 
        $49,400,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $9,030,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $30,835,000.
            (5) For military housing functions:
                    (A) For construction and acquisition, 
                planning and design and improvement of military 
                family housing and facilities, $298,303,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $849,213,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2301 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a); and
            (2) $5,400,000 (the balance of the amount 
        authorized under section 2301(a) for the construction 
        of a corrosion control facility at Tinker Air Force 
        Base, Oklahoma).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (5) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $6,385,000, which 
represents the combination of project savings resulting from 
favorable bids, reduced overhead costs, and cancellations due 
to force structure changes.

SEC. 2305. RETENTION OF ACCRUED INTEREST ON FUNDS DEPOSITED FOR 
                    CONSTRUCTION OF FAMILY HOUSING, SCOTT AIR FORCE 
                    BASE, ILLINOIS.

    (a) Retention of Interest.--Section 2310 of the Military 
Construction Authorization Act for Fiscal Year 1994 (division B 
of Public Law 103-160; 107 Stat. 1874) is amended--
            (1) by redesignating subsection (b) as subsection 
        (c); and
            (2) by inserting after subsection (a) the following 
        new subsection:
    ``(b) Retention of Interest.--Interest accrued on the funds 
transferred to the County pursuant to subsection (a) shall be 
retained in the same account as the transferred funds and shall 
be available to the County for the same purpose as the 
transferred funds.''.
    (b) Limitation on Units Constructed.--Subsection (c) of 
such section, as redesignated by subsection (a)(1), is amended 
by adding at the end the following new sentence: ``The number 
of units constructed using the transferred funds (and interest 
accrued on such funds) may not exceed the number of units of 
military family housing authorized for Scott Air Force Base in 
section 2302(a) of the Military Construction Authorization Act 
for Fiscal Year 1993.''.
    (c) Effect of Completion of Construction.--Such section is 
further amended by adding at the end the following new 
subsection:
    ``(d) Completion of Construction.--Upon the completion of 
the construction authorized by this section, all funds 
remaining from the funds transferred pursuant to subsection 
(a), and the remaining interest accrued on such funds, shall be 
deposited in the general fund of the Treasury of the United 
States.''.
    (d) Reports on Accrued Interest.--Such section is further 
amended by adding at the end the following new subsection:
    ``(e) Reports on Accrued Interest.--Not later than March 1 
of each year following a year in which funds available to the 
County under this section are used by the County for the 
purpose referred to in subsection (c), the Secretary shall 
submit to the congressional defense committees a report setting 
forth the amount of interest that accrued on such funds during 
the preceding year.''.

                      TITLE XXIV--DEFENSE AGENCIES

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                    ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2405(a)(1), and, in the case of the project described in 
section 2405(b)(2), other amounts appropriated pursuant to 
authorizations enacted after this Act for that project, the 
Secretary of Defense may acquire real property and carry out 
military construction projects for the installations and 
locations inside the United States, and in the amounts, set 
forth in the following table:

               Defense Agencies: Inside the United States               
------------------------------------------------------------------------
                                      Installation or                   
           Agency/State                   location            Amount    
------------------------------------------------------------------------
Ballistic Missile Defense                                               
 Organization                                                           
Texas............................  Fort Bliss...........     $13,600,000
                                                                        
Defense Finance & Accounting                                            
 Service                                                                
Ohio.............................  Columbus Center......     $72,403,000
                                                                        
Defense Intelligence Agency                                             
District of Columbia.............  Bolling Air Force                    
                                    Base................        $498,000
                                                                        
Defense Logistics Agency                                                
Alabama..........................  Defense Distribution                 
                                    Anniston............      $3,550,000
California.......................  Defense Distribution                 
                                    Stockton............     $15,000,000
                                   DFSC, Point Mugu.....        $750,000
Delaware.........................  DFSC, Dover Air Force                
                                    Base................     $15,554,000
Florida..........................  DFSC, Eglin Air Force                
                                    Base................      $2,400,000
Louisiana........................  DFSC, Barksdale Air                  
                                    Force Base..........     $13,100,000
New Jersey.......................  DFSC, McGuire Air                    
                                    Force Base..........     $12,000,000
Pennsylvania.....................  Defense Distribution                 
                                    New Cumberland--DDSP      $4,600,000
Virginia.........................  Defense Distribution                 
                                    Depot--DDNV.........     $10,400,000
                                                                        
Defense Mapping Agency                                                  
Missouri.........................  Defense Mapping                      
                                    Agency Aerospace                    
                                    Center..............     $40,300,000
                                                                        
Defense Medical Facility Office                                         
Alabama..........................  Maxwell Air Force                    
                                    Base................     $10,000,000
Arizona..........................  Luke Air Force Base..      $8,100,000
California.......................  Fort Irwin...........      $6,900,000
                                   Marine Corps Base,                   
                                    Camp Pendleton......      $1,700,000
                                   Vandenberg Air Force                 
                                    Base................      $5,700,000
Delaware.........................  Dover Air Force Base.      $4,400,000
Georgia..........................  Fort Benning.........      $5,600,000
Louisiana........................  Barksdale Air Force                  
                                    Base................      $4,100,000
Maryland.........................  Bethesda Naval                       
                                    Hospital............      $1,300,000
                                   Walter Reed Army                     
                                    Institute of                        
                                    Research............      $1,550,000
Texas............................  Fort Hood............      $5,500,000
                                   Lackland Air Force                   
                                    Base................      $6,100,000
Virginia.........................  Northwest Naval                      
                                    Security Group                      
                                    Activity............      $4,300,000
                                                                        
National Security Agency                                                
Maryland.........................  Fort Meade...........     $18,733,000
                                                                        
Office of the Secretary of                                              
 Defense                                                                
Inside the United States.........  Classified location..     $11,500,000
                                                                        
Department of Defense Dependents                                        
 Schools                                                                
Alabama..........................  Maxwell Air Force                    
                                    Base................      $5,479,000
Georgia..........................  Fort Benning.........      $1,116,000
South Carolina...................  Fort Jackson.........        $576,000
                                                                        
Special Operations Command                                              
California.......................  Camp Pendleton.......      $5,200,000
Florida..........................  Eglin Air Force Base                 
                                    (Duke Field)........      $2,400,000
                                   Eglin Auxiliary Field                
                                    9...................     $14,150,000
North Carolina...................  Fort Bragg...........     $23,800,000
Pennsylvania.....................  Olmstead Field,                      
                                    Harrisburg IAP......      $1,643,000
Virginia.........................  Dam Neck.............      $4,500,000
                                   Naval Amphibious                     
                                    Base, Little Creek..      $6,100,000
                                                         ---------------
                                                                        
                                     Total:.............    $364,602,000
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2405(a)(2), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations and locations outside the United States, and in 
the amounts, set forth in the following table:

               Defense Agencies: Outside the United States              
------------------------------------------------------------------------
          Agency/Country             Installation name        Amount    
------------------------------------------------------------------------
Defense Logistics Agency                                                
Puerto Rico......................  Defense Fuel Support                 
                                    Point, Roosevelt                    
                                    Roads...............      $6,200,000
Spain............................  DFSC Rota............      $7,400,000
                                                                        
Defense Medical Facility Office                                         
Italy............................  Naval Support                        
                                    Activity, Naples....      $5,000,000
                                                                        
Department of Defense Dependents                                        
 Schools                                                                
Germany..........................  Ramstein Air Force                   
                                    Base................     $19,205,000
Italy............................  Naval Air Station,                   
                                    Sigonella...........      $7,595,000
                                                                        
National Security Agency                                                
United Kingdom...................  Menwith Hill Station.        $677,000
                                                                        
Special Operations Command                                              
Guam.............................  Naval Station, Guam..      $8,800,000
                                                         ---------------
                                     Total:.............     $54,877,000
------------------------------------------------------------------------

SEC. 2402. MILITARY FAMILY HOUSING PRIVATE INVESTMENT.

    (a) Availability of Funds for Investment.--Of the amount 
authorized to be appropriated pursuant to section 
2405(a)(11)(A), $22,000,000 shall be available for crediting to 
the Department of Defense Family Housing Improvement Fund 
established by section 2883(a)(1) of title 10, United States 
Code (as added by section 2801 of this Act).
    (b) Use of Funds.--The Secretary of Defense may use funds 
credited to the Department of Defense Family Housing 
Improvement Fund under subsection (a) to carry out any 
activities authorized by subchapter IV of chapter 169 of such 
title (as added by such section) with respect to military 
family housing.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(a)(11)(A), the Secretary of 
Defense may improve existing military family housing units in 
an amount not to exceed $3,772,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(a)(9), the Secretary of Defense 
may carry out energy conservation projects under section 2865 
of title 10, United States Code.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1995, for military construction, land acquisition, and military 
family housing functions of the Department of Defense (other 
than the military departments), in the total amount of 
$4,629,491,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2401(a), 
        $329,599,000.
            (2) For military construction projects outside the 
        United States authorized by section 2401(b), 
        $54,877,000.
            (3) For military construction projects at 
        Portsmouth Naval Hospital, Virginia, authorized by 
        section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Years 1990 and 1991 
        (division B of Public Law 101-189; 103 Stat. 1640), 
        $47,900,000.
            (4) For military construction projects at Elmendorf 
        Air Force Base, Alaska, hospital replacement, 
        authorized by section 2401(a) of the Military 
        Construction Authorization Act for Fiscal Year 1993 
        (division B of Public Law 102-484; 106 Stat. 2599), 
        $28,100,000.
            (5) For military construction projects at Walter 
        Reed Army Institute of Research, Maryland, hospital 
        replacement, authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        1993 (division B of Public Law 102-484; 106 Stat. 
        2599), $27,000,000.
            (6) For unspecified minor construction projects 
        under section 2805 of title 10, United States Code, 
        $23,007,000.
            (7) For contingency construction projects of the 
        Secretary of Defense under section 2804 of title 10, 
        United States Code, $11,037,000.
            (8) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $68,837,000.
            (9) For energy conservation projects authorized by 
        section 2404, $40,000,000.
            (10) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment 
        Act of 1990 (part A of title XXIX of Public Law 101-
        510; 10 U.S.C. 2687 note), $3,897,892,000.
            (11) For military family housing functions:
                    (A) For construction and acquisition and 
                improvement of military family housing and 
                facilities, $25,772,000.
                    (B) For support of military housing 
                (including functions described in section 2833 
                of title 10, United States Code), $40,467,000, 
                of which not more than $24,874,000 may be 
                obligated or expended for the leasing of 
                military family housing units worldwide.
    (b) Limitation of Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853 
of title 10, United States Code, and any other cost variations 
authorized by law, the total cost of all projects carried out 
under section 2401 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a); and
            (2) $35,003,000 (the balance of the amount 
        authorized under section 2401(a) for the construction 
        of a center of the Defense Finance and Accounting 
        Service at Columbus, Ohio).

SEC. 2406. LIMITATIONS ON USE OF DEPARTMENT OF DEFENSE BASE CLOSURE 
                    ACCOUNT 1990.

    (a) Set Aside for 1995 Round.--Of the amounts appropriated 
pursuant to the authorization of appropriations in section 
2405(a)(10), $784,569,000 shall be available only for the 
purposes described in section 2905 of the Defense Base Closure 
and Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) with respect to military 
installations approved for closure or realignment in 1995.
    (b) Construction.--Amounts appropriated pursuant to the 
authorization of appropriations in section 2405(a)(10) may not 
be obligated to carry out a construction project with respect 
to military installations approved for closure or realignment 
in 1995 until after the date on which the Secretary of Defense 
submits to Congress a five-year program for executing the 1995 
base realignment and closure plan. The limitation contained in 
this subsection shall not prohibit site surveys, environmental 
baseline surveys, environmental analysis under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and 
planning and design work conducted in anticipation of such 
construction.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1995 
                    PROJECTS.

    The table in section 2401 of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3040), under the agency heading relating 
to Chemical Weapons and Munitions Destruction, is amended--
            (1) in the item relating to Pine Bluff Arsenal, 
        Arkansas, by striking out ``$3,000,000'' in the amount 
        column and inserting in lieu thereof ``$115,000,000''; 
        and
            (2) in the item relating to Umatilla Army Depot, 
        Oregon, by striking out ``$12,000,000'' in the amount 
        column and inserting in lieu thereof ``$186,000,000''.

SEC. 2408. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR 
                    FISCAL YEAR 1994 CONTINGENCY CONSTRUCTION PROJECTS.

    Section 2403(a) of the Military Construction Authorization 
Act for Fiscal Year 1994 (division B of Public Law 103-160; 107 
Stat. 1876) is amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``$3,268,394,000'' and inserting in lieu 
        thereof ``$3,260,263,000''; and
            (2) in paragraph (10), by striking out 
        ``$12,200,000'' and inserting in lieu thereof 
        ``$4,069,000''.

      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the 
North Atlantic Treaty Organization Infrastructure program as 
provided in section 2806 of title 10, United States Code, in an 
amount not to exceed the sum of the amount authorized to be 
appropriated for this purpose in section 2502 and the amount 
collected from the North Atlantic Treaty Organization as a 
result of construction previously financed by the United 
States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal 
years beginning after September 30, 1995, for contributions by 
the Secretary of Defense under section 2806 of title 10, United 
States Code, for the share of the United States of the cost of 
projects for the North Atlantic Treaty Organization 
Infrastructure program, as authorized by section 2501, in the 
amount of $161,000,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
                    ACQUISITION PROJECTS.

    There are authorized to be appropriated for fiscal years 
beginning after September 30, 1995, for the costs of 
acquisition, architectural and engineering services, and 
construction of facilities for the Guard and Reserve Forces, 
and for contributions therefor, under chapter 133 of title 10, 
United States Code (including the cost of acquisition of land 
for those facilities), the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the 
                United States, $134,802,000; and
                    (B) for the Army Reserve, $73,516,000.
            (2) For the Department of the Navy, for the Naval 
        and Marine Corps Reserve, $19,055,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the 
                United States, $170,917,000; and
                    (B) for the Air Force Reserve, $36,232,000.

SEC. 2602. REDUCTION IN AMOUNT AUTHORIZED TO BE APPROPRIATED FOR FISCAL 
                    YEAR 1994 AIR NATIONAL GUARD PROJECTS.

    Section 2601(3)(A) of the Military Construction 
Authorization Act for Fiscal Year 1994 (division B of Public 
Law 103-160; 107 Stat. 1878) is amended by striking out 
``$236,341,000'' and inserting in lieu thereof 
``$229,641,000''.

SEC. 2603. CORRECTION IN AUTHORIZED USES OF FUNDS FOR ARMY NATIONAL 
                    GUARD PROJECTS IN MISSISSIPPI.

    (a) In General.--Subject to subsection (b), amounts 
appropriated pursuant to the authorization of appropriations in 
section 2601(1)(A) of the Military Construction Authorization 
Act for Fiscal Year 1994 (division B of Public Law 103-160; 107 
Stat. 1878) for the addition or alteration of Army National 
Guard Armories at various locations in the State of Mississippi 
shall be available for the addition, alteration, or new 
construction of armory facilities and an operation and 
maintenance shop facility (including the acquisition of land 
for such facilities) at various locations in the State of 
Mississippi.
    (b) Notice and Wait.--The amounts referred to in subsection 
(a) shall not be available for construction with respect to a 
facility referred to in that subsection until 21 days after the 
date on which the Secretary of the Army submits to Congress a 
report describing the construction (including any land 
acquisition) to be carried out with respect to the facility.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
                    SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except 
as provided in subsection (b), all authorizations contained in 
titles XXI through XXVI for military construction projects, 
land acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Infrastructure program (and authorizations of appropriations 
therefor) shall expire on the later of--
            (1) October 1, 1998; or
            (2) the date of the enactment of an Act authorizing 
        funds for military construction for fiscal year 1999.
    (b) Exception.--Subsection (a) shall not apply to 
authorizations for military construction projects, land 
acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Infrastructure program (and authorizations of appropriations 
therefor), for which appropriated funds have been obligated 
before the later of--
            (1) October 1, 1998; or
            (2) the date of the enactment of an Act authorizing 
        funds for fiscal year 1999 for military construction 
        projects, land acquisition, family housing projects and 
        facilities, or contributions to the North Atlantic 
        Treaty Organization Infrastructure program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993 
                    PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1993 
(division B of Public Law 102-484; 106 Stat. 2602), 
authorizations for the projects set forth in the tables in 
subsection (b), as provided in section 2101, 2301, or 2601 of 
that Act or in section 2201 of that Act (as amended by section 
2206 of this Act), shall remain in effect until October 1, 
1996, or the date of the enactment of an Act authorizing funds 
for military construction for fiscal year 1997, whichever is 
later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:

                                 Army: Extension of 1993 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Arkansas..............................  Pine Bluff Arsenal.......  Ammunition Demilitarization                  
                                                                    Support Facility............     $15,000,000
Hawaii................................  Schofield Barracks.......  Add/Alter Sewage Treatment                   
                                                                    Plant.......................     $17,500,000
----------------------------------------------------------------------------------------------------------------



                                 Navy: Extension of 1993 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Camp Pendleton Marine                                                   
                                         Corps Base..............  Sewage Treatment Plant                       
                                                                    Modifications...............     $19,740,000
Maryland..............................  Patuxent River Naval                                                    
                                         Warfare Center..........  Large Anechoic Chamber, Phase                
                                                                    I...........................     $60,990,000
Mississippi...........................  Meridian Naval Air                                                      
                                         Station.................  Child Development Center.....      $1,100,000
Virginia..............................  Hampton Roads............  Land Acquisition.............      $4,500,000
----------------------------------------------------------------------------------------------------------------



                               Air Force: Extension of 1993 Project Authorizations                              
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Arkansas..............................  Little Rock Air Force                                                   
                                         Base....................  Fire Training Facility.......        $710,000
District of Columbia..................  Bolling Air Force Base...  Civil Engineer Complex.......      $9,400,000
Mississippi...........................  Keesler Air Force Base...  Alter Student Dormitory......      $3,100,000
North Carolina........................  Pope Air Force Base......  Construct Bridge Road and                    
                                                                    Utilities...................      $4,000,000
                                        Pope Air Force Base......  Munitions Storage Complex....      $4,300,000
Virginia..............................  Langley Air Force Base...  Base Engineer Complex........      $5,300,000
Guam..................................  Andersen Air Base........  Landfill.....................     $10,000,000
Portugal..............................  Lajes Field..............  Water Wells..................        $865,000
                                        Lajes Field..............  Fire Training Facility.......        $950,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1993 Project Authorizations                         
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Alabama...............................  Tuscaloosa...............  Armory.......................      $2,273,000
                                        Union Springs............  Armory.......................        $813,000
Oregon................................  La Grande................  Organizational Maintenance                   
                                                                    Shop........................      $1,220,000
                                        La Grande................  Armory Addition..............      $3,049,000
Pennsylvania..........................  Indiana..................  Armory.......................      $1,700,000
Rhode Island..........................  North Kingston...........  Add/Alter Armory.............      $3,330,000
----------------------------------------------------------------------------------------------------------------



                             Army Reserve: Extension of 1993 Project Authorizations                             
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
West Virginia.........................  Bluefield................  United States Army Reserve                   
                                                                    Center......................      $1,921,000
                                        Clarksburg...............  United States Army Reserve                   
                                                                    Center......................      $1,566,000
                                        Grantville...............  United States Army Reserve                   
                                                                    Center......................      $2,785,000
                                        Lewisburg................  United States Army Reserve                   
                                                                    Center......................      $1,631,000
                                        Weirton..................  United States Army Reserve                   
                                                                    Center......................      $3,481,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992 
                    PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1992 
(division B of Public Law 102-190; 105 Stat. 1535), 
authorizations for the projects set forth in the tables in 
subsection (b), as provided in section 2101 or 2601 of that 
Act, and extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3047), shall remain in effect until 
October 1, 1996, or the date of the enactment of an Act 
authorizing funds for military construction for fiscal year 
1997, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:

                                 Army: Extension of 1992 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Oregon................................  Umatilla Army Depot......  Ammunition Demilitarization                  
                                                                    Support Facility............      $3,600,000
                                        Umatilla Army Depot......  Ammunition Demilitarization                  
                                                                    Utilities...................      $7,500,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1992 Project Authorization                          
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Ohio..................................  Toledo...................  Armory.......................      $3,183,000
----------------------------------------------------------------------------------------------------------------



                              Army Reserve: Extension of 1992 Project Authorization                             
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Tennessee.............................  Jackson..................  Joint Training Facility......      $1,537,000
----------------------------------------------------------------------------------------------------------------

                    TITLE XXVIII--GENERAL PROVISIONS

         Subtitle A--Military Housing Privatization Initiative

SEC. 2801. ALTERNATIVE AUTHORITY FOR CONSTRUCTION AND IMPROVEMENT OF 
                    MILITARY HOUSING.

    (a) Alternative Authority To Construct and Improve Military 
Housing.--(1) Chapter 169 of title 10, United States Code, is 
amended by adding at the end the following new subchapter:

``SUBCHAPTER IV--ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT 
                          OF MILITARY HOUSING

``Sec.
``2871. Definitions.
``2872. General authority.
``2873. Direct loans and loan guarantees.
``2874. Leasing of housing to be constructed.
``2875. Investments in nongovernmental entities.
``2876. Rental guarantees.
``2877. Differential lease payments.
``2878. Conveyance or lease of existing property and facilities.
``2879. Interim leases.
``2880. Unit size and type.
``2881. Ancillary supporting facilities.
``2882. Assignment of members of the armed forces to housing units.
``2883. Department of Defense Housing Funds.
``2884. Reports.
``2885. Expiration of authority.

``Sec. 2871. Definitions

    ``In this subchapter:
            ``(1) The term `ancillary supporting facilities' 
        means facilities related to military housing units, 
        including child care centers, day care centers, tot 
        lots, community centers, housing offices, dining 
        facilities, unit offices, and other similar facilities 
        for the support of military housing.
            ``(2) The term `base closure law' means the 
        following:
                    ``(A) Section 2687 of this title.
                    ``(B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                (Public Law 100-526; 10 U.S.C. 2687 note).
                    ``(C) The Defense Base Closure and 
                Realignment Act of 1990 (part A of title XXIX 
                of Public Law 101-510; 10 U.S.C. 2687 note).
            ``(3) The term `construction' means the 
        construction of military housing units and ancillary 
        supporting facilities or the improvement or 
        rehabilitation of existing units or ancillary 
        supporting facilities.
            ``(4) The term `contract' includes any contract, 
        lease, or other agreement entered into under the 
        authority of this subchapter.
            ``(5) The term `Fund' means the Department of 
        Defense Family Housing Improvement Fund or the 
        Department of Defense Military Unaccompanied Housing 
        Improvement Fund established under section 2883(a) of 
        this title.
            ``(6) The term `military unaccompanied housing' 
        means military housing intended to be occupied by 
        members of the armed forces serving a tour of duty 
        unaccompanied by dependents.
            ``(7) The term `United States' includes the 
        Commonwealth of Puerto Rico.

``Sec. 2872. General authority

    ``In addition to any other authority provided under this 
chapter for the acquisition or construction of military family 
housing or military unaccompanied housing, the Secretary 
concerned may exercise any authority or any combination of 
authorities provided under this subchapter in order to provide 
for the acquisition or construction by private persons of the 
following:
            ``(1) Family housing units on or near military 
        installations within the United States and its 
        territories and possessions.
            ``(2) Military unaccompanied housing units on or 
        near such military installations.

``Sec. 2873. Direct loans and loan guarantees

    ``(a) Direct Loans.--(1) Subject to subsection (c), the 
Secretary concerned may make direct loans to persons in the 
private sector in order to provide funds to such persons for 
the acquisition or construction of housing units that the 
Secretary determines are suitable for use as military family 
housing or as military unaccompanied housing.
    ``(2) The Secretary concerned shall establish such terms 
and conditions with respect to loans made under this subsection 
as the Secretary considers appropriate to protect the interests 
of the United States, including the period and frequency for 
repayment of such loans and the obligations of the obligors on 
such loans upon default.
    ``(b) Loan Guarantees.--(1) Subject to subsection (c), the 
Secretary concerned may guarantee a loan made to any person in 
the private sector if the proceeds of the loan are to be used 
by the person to acquire, or construct housing units that the 
Secretary determines are suitable for use as military family 
housing or as military unaccompanied housing.
    ``(2) The amount of a guarantee on a loan that may be 
provided under paragraph (1) may not exceed the amount equal to 
the lesser of--
            ``(A) the amount equal to 80 percent of the value 
        of the project; or
            ``(B) the amount of the outstanding principal of 
        the loan.
    ``(3) The Secretary concerned shall establish such terms 
and conditions with respect to guarantees of loans under this 
subsection as the Secretary considers appropriate to protect 
the interests of the United States, including the rights and 
obligations of obligors of such loans and the rights and 
obligations of the United States with respect to such 
guarantees.
    ``(c) Limitation on Direct Loan and Guarantee Authority.--
Direct loans and loan guarantees may be made under this section 
only to the extent that appropriations of budget authority to 
cover their cost (as defined in section 502(5) of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a(5))) are made in 
advance, or authority is otherwise provided in appropriation 
Acts. If such appropriation or other authority is provided, 
there may be established a financingaccount (as defined in 
section 502(7) of such Act (2 U.S.C. 661a(7))), which shall be 
available for the disbursement of direct loans or payment of claims for 
payment on loan guarantees under this section and for all other cash 
flows to and from the Government as a result of direct loans and 
guarantees made under this section.

``Sec. 2874. Leasing of housing to be constructed

    ``(a) Build and Lease Authorized.--The Secretary concerned 
may enter into contracts for the lease of military family 
housing units or military unaccompanied housing units to be 
constructed under this subchapter.
    ``(b) Lease Terms.--A contract under this section may be 
for any period that the Secretary concerned determines 
appropriate and may provide for the owner of the leased 
property to operate and maintain the property.

``Sec. 2875. Investments in nongovernmental entities

    ``(a) Investments Authorized.--The Secretary concerned may 
make investments in nongovernmental entities carrying out 
projects for the acquisition or construction of housing units 
suitable for use as military family housing or as military 
unaccompanied housing.
    ``(b) Forms of Investment.--An investment under this 
section may take the form of an acquisition of a limited 
partnership interest by the United States, a purchase of stock 
or other equity instruments by the United States, a purchase of 
bonds or other debt instruments by the United States, or any 
combination of such forms of investment.
    ``(c) Limitation on Value of Investment.--(1) The cash 
amount of an investment under this section in a nongovernmental 
entity may not exceed an amount equal to 33\1/3\ percent of the 
capital cost (as determined by the Secretary concerned) of the 
project or projects that the entity proposes to carry out under 
this section with the investment.
    ``(2) If the Secretary concerned conveys land or facilities 
to a nongovernmental entity as all or part of an investment in 
the entity under this section, the total value of the 
investment by the Secretary under this section may not exceed 
an amount equal to 45 percent of the capital cost (as 
determined by the Secretary) of the project or projects that 
the entity proposes to carry out under this section with the 
investment.
    ``(3) In this subsection, the term `capital cost', with 
respect to a project for the acquisition or construction of 
housing, means the total amount of the costs included in the 
basis of the housing for Federal income tax purposes.
    ``(d) Collateral Incentive Agreements.--The Secretary 
concerned shall enter into collateral incentive agreements with 
nongovernmental entities in which the Secretary makes an 
investment under this section to ensure that a suitable 
preference will be afforded members of the armed forces and 
their dependents in the lease or purchase, as the case may be, 
of a reasonable number of the housing units covered by the 
investment.

``Sec. 2876. Rental guarantees

    ``The Secretary concerned may enter into agreements with 
private persons that acquire or construct military family 
housing units or military unaccompanied housing units under 
this subchapter in order to assure--
            ``(1) the occupancy of such units at levels 
        specified in the agreements; or
            ``(2) rental income derived from rental of such 
        units at levels specified in the agreements.

``Sec. 2877. Differential lease payments

    ``Pursuant to an agreement entered into by the Secretary 
concerned and a private lessor of military family housing or 
military unaccompanied housing to members of the armed forces, 
the Secretary may pay the lessor an amount in addition to the 
rental payments for the housing made by the members as the 
Secretary determines appropriate to encourage the lessor to 
make the housing available to members of the armed forces as 
military family housing or as military unaccompanied housing.

``Sec. 2878. Conveyance or lease of existing property and facilities

    ``(a) Conveyance or Lease Authorized.--The Secretary 
concerned may convey or lease property or facilities (including 
ancillary supporting facilities) to private persons for 
purposes of using the proceeds of such conveyance or lease to 
carry out activities under this subchapter.
    ``(b) Inapplicability to Property at Installation Approved 
for Closure.--The authority of this section does not apply to 
property or facilities located on or near a military 
installation approved for closure under a base closure law.
    ``(c) Terms and Conditions.--(1) The conveyance or lease of 
property or facilities under this section shall be for such 
consideration and upon such terms and conditions as the 
Secretary concerned considers appropriate for the purposes of 
this subchapter and to protect the interests of the United 
States.
    ``(2) As part or all of the consideration for a conveyance 
or lease under this section, the purchaser or lessor (as the 
case may be) shall enter into an agreement with the Secretary 
to ensure that a suitable preference will be afforded members 
of the armed forces and their dependents in the lease or 
sublease of a reasonable number of the housing units covered by 
the conveyance or lease, as the case may be, or in the lease of 
other suitable housing units made available by the purchaser or 
lessee.
    ``(d) Inapplicability of Certain Property Management 
Laws.--The conveyance or lease of property or facilities under 
this section shall not be subject to the following provisions 
of law:
            ``(1) Section 2667 of this title.
            ``(2) The Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 471 et seq.).
            ``(3) Section 321 of the Act of June 30, 1932 
        (commonly known as the Economy Act) (40 U.S.C. 303b).
            ``(4) Section 501 of the Stewart B. McKinney 
        Homeless Assistance Act (42 U.S.C. 11401).

``Sec. 2879. Interim leases

    ``Pending completion of a project to acquire or construct 
military family housing units or military unaccompanied housing 
units under this subchapter, the Secretary concerned may 
provide for the interim lease of such units of the project as 
are complete. The term of a lease under this section may not 
extend beyond the date of the completion of the project 
concerned.

``Sec. 2880. Unit size and type

    ``(a) Conformity With Similar Housing Units in Locale.--The 
Secretary concerned shall ensure that the room patterns and 
floor areas of military family housing units and military 
unaccompanied housing units acquired or constructed under this 
subchapter are generally comparable to the room patterns and 
floor areas of similar housing units in the locality concerned.
    ``(b) Inapplicability of Limitations on Space by Pay 
Grade.--(1) Section 2826 of this title shall not apply to 
military family housing units acquired or constructed under 
this subchapter.
    ``(2) The regulations prescribed under section 2856 of this 
title shall not apply to any military unaccompanied housing 
unit acquired or constructed under this subchapter unless the 
unit is located on a military installation.

``Sec. 2881. Ancillary supporting facilities

    ``Any project for the acquisition or construction of 
military family housing units or military unaccompanied housing 
units under this subchapter may include the acquisition or 
construction of ancillary supporting facilities for the housing 
units concerned.

``Sec. 2882. Assignment of members of the armed forces to housing units

    ``(a) In General.--The Secretary concerned may assign 
members of the armed forces to housing units acquired or 
constructed under this subchapter.
    ``(b) Effect of Certain Assignments on Entitlement to 
Housing Allowances.--(1) Except as provided in paragraph (2), 
housing referred to in subsection (a) shall be considered as 
quarters of the United States or a housing facility under the 
jurisdiction of a uniformed service for purposes of section 
403(b) of title 37.
    ``(2) A member of the armed forces who is assigned in 
accordance with subsection (a) to a housing unit not owned or 
leased by the United States shall be entitled to a basic 
allowance for quarters under section 403 of title 37 and, if in 
a high housing cost area, a variable housing allowance under 
section 403a of that title.
    ``(c) Lease Payments Through Pay Allotments.--The Secretary 
concerned may require members of the armed forces who lease 
housing in housing units acquired or constructed under this 
subchapter to make lease payments for such housing pursuant to 
allotments of the pay of such members under section 701 of 
title 37.

``Sec. 2883. Department of Defense Housing Funds

    ``(a) Establishment.--There are hereby established on the 
books of the Treasury the following accounts:
            ``(1) The Department of Defense Family Housing 
        Improvement Fund.
            ``(2) The Department of Defense Military 
        Unaccompanied Housing Improvement Fund.
    ``(b) Commingling of Funds Prohibited.--(1) The Secretary 
of Defense shall administer each Fund separately.
    ``(2) Amounts in the Department of Defense Family Housing 
Improvement Fund may be used only to carry out activities under 
this subchapter with respect to military family housing.
    ``(3) Amounts in the Department of Defense Military 
Unaccompanied Housing Improvement Fund may be used only to 
carry out activities under this subchapter with respect to 
military unaccompanied housing.
    ``(c) Credits to Funds.--(1) There shall be credited to the 
Department of Defense Family Housing Improvement Fund the 
following:
            ``(A) Amounts authorized for and appropriated to 
        that Fund.
            ``(B) Subject to subsection (f), any amounts that 
        the Secretary of Defense transfers, in such amounts as 
        provided in appropriation Acts, to that Fund from 
        amounts authorized and appropriated to the Department 
        of Defense for the acquisition or construction of 
        military family housing.
            ``(C) Proceeds from the conveyance or lease of 
        property or facilities under section 2878 of this title 
        for the purpose of carrying out activities under this 
        subchapter with respect to military family housing.
            ``(D) Income derived from any activities under this 
        subchapter with respect to military family housing, 
        including interest on loans made under section 2873 of 
        this title, income and gains realized from investments 
        under section 2875 of this title, and any return of 
        capital invested as part of such investments.
    ``(2) There shall be credited to the Department of Defense 
Military Unaccompanied Housing Improvement Fund the following:
            ``(A) Amounts authorized for and appropriated to 
        that Fund.
            ``(B) Subject to subsection (f), any amounts that 
        the Secretary of Defense transfers, in such amounts as 
        provided in appropriation Acts, to that Fund from 
        amounts authorized and appropriated to the Department 
        of Defense for the acquisition or construction of 
        military unaccompanied housing.
            ``(C) Proceeds from the conveyance or lease of 
        property or facilities under section 2878 of this title 
        for the purpose of carrying out activities under this 
        subchapter with respect to military unaccompanied 
        housing.
            ``(D) Income derived from any activities under this 
        subchapter with respect to military unaccompanied 
        housing, including interest on loans made under section 
        2873 of this title, income and gains realized from 
        investmentsunder section 2875 of this title, and any 
return of capital invested as part of such investments.
    ``(d) Use of Amounts in Funds.--(1) In such amounts as 
provided in appropriation Acts and except as provided in 
subsection (e), the Secretary of Defense may use amounts in the 
Department of Defense Family Housing Improvement Fund to carry 
out activities under this subchapter with respect to military 
family housing, including activities required in connection 
with the planning, execution, and administration of contracts 
entered into under the authority of this subchapter.
    ``(2) In such amounts as provided in appropriation Acts and 
except as provided in subsection (e), the Secretary of Defense 
may use amounts in the Department of Defense Military 
Unaccompanied Housing Improvement Fund to carry out activities 
under this subchapter with respect to military unaccompanied 
housing, including activities required in connection with the 
planning, execution, and administration of contracts entered 
into under the authority of this subchapter.
    ``(3) Amounts made available under this subsection shall 
remain available until expended. The Secretary of Defense may 
transfer amounts made available under this subsection to the 
Secretaries of the military departments to permit such 
Secretaries to carry out the activities for which such amounts 
may be used.
    ``(e) Limitation on Obligations.--The Secretary may not 
incur an obligation under a contract or other agreement entered 
into under this subchapter in excess of the unobligated 
balance, at the time the contract is entered into, of the Fund 
required to be used to satisfy the obligation.
    ``(f) Notification Required for Transfers.--A transfer of 
appropriated amounts to a Fund under paragraph (1)(B) or (2)(B) 
of subsection (c) may be made only after the end of the 30-day 
period beginning on the date the Secretary of Defense submits 
written notice of, and justification for, the transfer to the 
appropriate committees of Congress.
    ``(g) Limitation on Amount of Budget Authority.--The total 
value in budget authority of all contracts and investments 
undertaken using the authorities provided in this subchapter 
shall not exceed--
            ``(1) $850,000,000 for the acquisition or 
        construction of military family housing; and
            ``(2) $150,000,000 for the acquisition or 
        construction of military unaccompanied housing.

``Sec. 2884. Reports

    ``(a) Project Reports.--(1) The Secretary of Defense shall 
transmit to the appropriate committees of Congress a report 
describing--
            ``(A) each contract for the acquisition or 
        construction of family housing units or unaccompanied 
        housing units that the Secretary proposes to solicit 
        under this subchapter; and
            ``(B) each conveyance or lease proposed under 
        section 2878 of this title.
    ``(2) The report shall describe the proposed contract, 
conveyance, or lease and the intended method of participation 
of the United States in the contract, conveyance, or lease and 
provide a justification of such method of participation. The 
report shall be submitted not later than 30 days before the 
date on which the Secretary issues the contract solicitation or 
offers the conveyance or lease.
    ``(b) Annual Reports.--The Secretary of Defense shall 
include each year in the materials that the Secretary submits 
to Congress in support of the budget submitted by the President 
pursuant to section 1105 of title 31 the following:
            ``(1) A report on the expenditures and receipts 
        during the preceding fiscal year covering the Funds 
        established under section 2883 of this title.
            ``(2) A methodology for evaluating the extent and 
        effectiveness of the use of the authorities under this 
        subchapter during such preceding fiscal year.
            ``(3) A description of the objectives of the 
        Department of Defense for providing military family 
        housing and military unaccompanied housing for members 
        of the armed forces.

``Sec. 2885. Expiration of authority

    ``The authority to enter into a contract under this 
subchapter shall expire five years after the date of the 
enactment of the National Defense Authorization Act for Fiscal 
Year 1996.''.
    (2) The table of subchapters at the beginning of such 
chapter is amended by inserting after the item relating to 
subchapter III the following new item:

``IV. Alternative Authority for Acquisition and Improvement of 
    Military Housing.............................................2871''.

    (b) Final Report.--Not later than March 1, 2000, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the use by the Secretary of Defense and 
the Secretaries of the military departments of the authorities 
provided by subchapter IV of chapter 169 of title 10, United 
States Code, as added by subsection (a). The report shall 
assess the effectiveness of such authority in providing for the 
construction and improvement of military family housing and 
military unaccompanied housing.

SEC. 2802. EXPANSION OF AUTHORITY FOR LIMITED PARTNERSHIPS FOR 
                    DEVELOPMENT OF MILITARY FAMILY HOUSING.

    (a) Participation of Other Military Departments.--(1) 
Subsection (a)(1) of section 2837 of title 10, United States 
Code, is amended by striking out ``of the naval service'' and 
inserting in lieu thereof ``of the armed forces''.
    (2) Subsection (b)(1) of such section is amended by 
striking out ``of the naval service'' and inserting in lieu 
thereof ``of the armed forces''.
    (b) Administration.--(1) Subsection (a)(1) of such section 
is further amended by striking out ``the Secretary of the 
Navy'' in the first sentence and inserting in lieu thereof 
``the Secretary of a military department''.
    (2) Subsections (a)(2), (b), (c), (g), and (h) of such 
section are amended by striking out ``Secretary'' each place it 
appears and inserting in lieu thereof ``Secretary concerned''.
    (c) Account.--Subsection (d) of such section is amended to 
read as follows:
    ``(d) Account.--(1) There is hereby established on the 
books of the Treasury an account to be known as the `Defense 
Housing Investment Account'.
    ``(2) There shall be deposited into the Account--
            ``(A) such funds as may be authorized for and 
        appropriated to the Account;
            ``(B) any proceeds received by the Secretary 
        concerned from the repayment of investments or profits 
        on investments of the Secretary under subsection (a); 
        and
            ``(C) any unobligated balances which remain in the 
        Navy Housing Investment Account as of the date of the 
        enactment of the National Defense Authorization Act for 
        Fiscal Year 1996.
    ``(3) From such amounts as are provided in advance in 
appropriation Acts, funds in the Account shall be available to 
the Secretaries concerned in amounts determined by the 
Secretary of Defense for contracts, investments, and expenses 
necessary for the implementation of this section.
    ``(4) The Secretary concerned may not enter into a contract 
in connection with a limited partnership under subsection (a) 
or a collateral incentive agreement under subsection (b) unless 
a sufficient amount of the unobligated balance of the funds in 
the Account is available to the Secretary, as of the time the 
contract is entered into, to satisfy the total obligations to 
be incurred by the United States under the contract.''.
    (d) Termination of Navy Housing Investment Board.--Such 
section is further amended--
            (1) by striking out subsection (e); and
            (2) in subsection (h)--
                    (A) by striking out ``Authorities'' in the 
                subsection heading and inserting in lieu 
                thereof ``Authority'';
                    (B) by striking out ``(1)''; and
                    (C) by striking out paragraph (2).
    (e) Report.--Subsection (f) of such section is amended--
            (1) by striking out ``the Secretary carries out 
        activities'' and inserting in lieu thereof ``activities 
        are carried out''; and
            (2) by striking out ``the Secretary shall'' and 
        inserting in lieu thereof ``the Secretaries concerned 
        shall jointly''.
    (f) Extension of Authority.--Subsection (h) of such section 
is further amended by striking out ``September 30, 1999'' and 
inserting in lieu thereof ``September 30, 2000''.
    (g) Conforming Amendment.--Subsection (g) of such section 
is further amended by striking out ``Navy'' in the subsection 
heading.

  Subtitle B--Other Military Construction Program and Military Family 
                            Housing Changes

SEC. 2811. SPECIAL THRESHOLD FOR UNSPECIFIED MINOR CONSTRUCTION 
                    PROJECTS TO CORRECT LIFE, HEALTH, OR SAFETY 
                    DEFICIENCIES.

    (a) Special Threshold.--Section 2805 of title 10, United 
States Code, is amended--
            (1) in subsection (a)(1), by adding at the end the 
        following new sentence: ``However, if the military 
        construction project is intended solely to correct a 
        deficiency that is life-threatening, health-
        threatening, or safety-threatening, a minor military 
        construction project may have an approved cost equal to 
        or less than $3,000,000.''; and
            (2) in subsection (c)(1), by striking out ``not 
        more than $300,000.'' and inserting in lieu thereof 
        ``not more than--
            ``(A) $1,000,000, in the case of an unspecified 
        military construction project intended solely to 
        correct a deficiency that is life-threatening, health-
        threatening, or safety-threatening; or
            ``(B) $300,000, in the case of any other 
        unspecified military construction project.''.
    (b) Technical Amendment.--Section 2861(b)(6) of such title 
is amended by striking out ``section 2805(a)(2)'' and inserting 
in lieu thereof ``section 2805(a)(1)''.

SEC. 2812. CLARIFICATION OF SCOPE OF UNSPECIFIED MINOR CONSTRUCTION 
                    AUTHORITY.

    Section 2805(a)(1) of title 10, United States Code, as 
amended by section 2811 of this Act, is further amended by 
striking out ``(1) that is for a single undertaking at a 
military installation, and (2)'' in the second sentence.

SEC. 2813. TEMPORARY AUTHORITY TO WAIVE NET FLOOR AREA LIMITATION FOR 
                    FAMILY HOUSING ACQUIRED IN LIEU OF CONSTRUCTION.

    Section 2824(c) of title 10, United States Code, is amended 
by adding at the end the following new sentence: ``The 
Secretary concerned may waive the limitation set forth in the 
preceding sentence to family housing units acquired under this 
section during the five-year period beginning on the date of 
the enactment of the National Defense Authorization Act for 
Fiscal Year 1996.''.

SEC. 2814. REESTABLISHMENT OF AUTHORITY TO WAIVE NET FLOOR AREA 
                    LIMITATION ON ACQUISITION BY PURCHASE OF CERTAIN 
                    MILITARY FAMILY HOUSING.

    Section 2826(e) of title 10, United States Code, is amended 
by striking out the second sentence.

SEC. 2815. TEMPORARY AUTHORITY TO WAIVE LIMITATIONS ON SPACE BY PAY 
                    GRADE FOR MILITARY FAMILY HOUSING UNITS.

    Section 2826 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(i)(1) The Secretary concerned may waive the provisions 
of subsection (a) with respect to military family housing units 
constructed, acquired, or improved during the five-year period 
beginning on the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1996.
    ``(2) The total number of military family housing units 
constructed, acquired, or improved during any fiscal year in 
theperiod referred to in paragraph (1) shall be the total 
number of such units authorized by law for that fiscal year.''.

SEC. 2816. RENTAL OF FAMILY HOUSING IN FOREIGN COUNTRIES.

    Section 2828(e) of title 10, United States Code, is 
amended--
            (1) in paragraph (1)--
                    (A) by striking out ``300 units'' in the 
                first sentence and inserting in lieu thereof 
                ``450 units''; and
                    (B) by striking out ``220 such units'' in 
                the second sentence and inserting in lieu 
                thereof ``350 such units''; and
            (2) in paragraph (2), by striking out ``300 units'' 
        and inserting in lieu thereof ``450 units''.

SEC. 2817. CLARIFICATION OF SCOPE OF REPORT REQUIREMENT ON COST 
                    INCREASES UNDER CONTRACTS FOR MILITARY FAMILY 
                    HOUSING CONSTRUCTION.

    Subsection (d) of section 2853 of title 10, United States 
Code, is amended to read as follows:
    ``(d) The limitation on cost increases in subsection (a) 
does not apply to the settlement of a contractor claim under a 
contract.''.

SEC. 2818. AUTHORITY TO CONVEY DAMAGED OR DETERIORATED MILITARY FAMILY 
                    HOUSING.

    (a) Authority.--(1) Subchapter III of chapter 169 of title 
10, United States Code, is amended by inserting after section 
2854 the following new section:

``Sec. 2854a. Conveyance of damaged or deteriorated military family 
                    housing; use of proceeds

    ``(a) Authority To Convey.--(1) The Secretary concerned may 
convey any family housing facility that, due to damage or 
deterioration, is in a condition that is uneconomical to 
repair. Any conveyance of a family housing facility under this 
section may include a conveyance of the real property 
associated with the facility conveyed.
    ``(2) The authority of this section does not apply to 
family housing facilities located at military installations 
approved for closure under a base closure law or family housing 
facilities located at an installation outside the United States 
at which the Secretary of Defense terminates operations.
    ``(3) The aggregate total value of the family housing 
facilities conveyed by the Department of Defense under the 
authority in this subsection in any fiscal year may not exceed 
$5,000,000.
    ``(4) For purposes of this subsection, a family housing 
facility is in a condition that is uneconomical to repair if 
the cost of the necessary repairs for the facility would exceed 
the amount equal to 70 percent of the cost of constructing a 
family housing facility to replace such facility.
    ``(b) Consideration.--(1) As consideration for the 
conveyance of a family housing facility under subsection (a), 
the person to whom the facility is conveyed shall pay the 
United States an amount equal to the fair market value of the 
facility conveyed, including any real property conveyed along 
with the facility.
    ``(2) The Secretary concerned shall determine the fair 
market value of any family housing facility and associated real 
property that is conveyed under subsection (a). Such 
determination shall be final.
    ``(c) Notice and Wait Requirements.--The Secretary 
concerned may not enter into an agreement to convey a family 
housing facility under this section until--
            ``(1) the Secretary submits to the appropriate 
        committees of Congress, in writing, a justification for 
        the conveyance under the agreement, including--
                    ``(A) an estimate of the consideration to 
                be provided the United States under the 
                agreement;
                    ``(B) an estimate of the cost of repairing 
                the family housing facility to be conveyed; and
                    ``(C) an estimate of the cost of replacing 
                the family housing facility to be conveyed; and
            ``(2) a period of 21 calendar days has elapsed 
        after the date on which the justification is received 
        by the committees.
    ``(d) Inapplicability of Certain Property Disposal Laws.--
The following provisions of law do not apply to the conveyance 
of a family housing facility under this section:
            ``(1) The Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 471 et seq.).
            ``(2) Title V of the Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11411 et seq.).
    ``(e) Use of Proceeds.--(1) The proceeds of any conveyance 
of a family housing facility under this section shall be 
credited to the appropriate fund established under section 2883 
of this title and shall be available--
            ``(A) to construct family housing units to replace 
        the family housing facility conveyed under this 
        section, but only to the extent that the number of 
        units constructed with such proceeds does not exceed 
        the number of units of military family housing of the 
        facility conveyed;
            ``(B) to repair or restore existing military family 
        housing; and
            ``(C) to reimburse the Secretary concerned for the 
        costs incurred by the Secretary in conveying the family 
        housing facility.
    ``(2) Notwithstanding section 2883(d) of this title, 
proceeds derived from a conveyance of a family housing facility 
under this section shall be available under paragraph (1) 
without any further appropriation.
    ``(f) Description of Property.--The exact acreage and legal 
description of any family housing facility conveyed under this 
section, including any real property associated with such 
facility, shall be determined by such means as the Secretary 
concerned considers satisfactory, including by survey in the 
case of real property.
    ``(g) Additional Terms and Conditions.--The Secretary 
concerned may require such additional terms and conditions in 
connection with the conveyance of family housing facilities 
under this section as the Secretary considers appropriate to 
protect the interests of the United States.''.
    (2) The table of sections at the beginning of such 
subchapter is amended by inserting after the item relating to 
section 2854 the following new item:

``2854a. Conveyance of damaged or deteriorated military family housing; 
          use of proceeds.''.

    (b) Conforming Amendment.--Section 204(h) of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 
485(h)) is amended--
            (1) by redesignating paragraph (4) as paragraph 
        (5); and
            (2) by inserting after paragraph (3) the following 
        new paragraph (4):
    ``(4) This subsection does not apply to damaged or 
deteriorated military family housing facilities conveyed under 
section 2854a of title 10, United States Code.''.

SEC. 2819. ENERGY AND WATER CONSERVATION SAVINGS FOR THE DEPARTMENT OF 
                    DEFENSE.

    (a) Inclusion of Water Efficient Maintenance in Energy 
Performance Plan.--Paragraph (3) of section 2865(a) of title 
10, United States Code, is amended by striking out ``energy 
efficient maintenance'' and inserting in lieu thereof ``energy 
efficient maintenance or water efficient maintenance''.
    (b) Scope of Term.--Paragraph (4) of such section is 
amended--
            (1) in the matter preceding subparagraph (A), by 
        striking out `` `energy efficient maintenance' '' and 
        inserting in lieu thereof `` `energy efficient 
        maintenance or water efficient maintenance' '';
            (2) in subparagraph (A), by striking out ``systems 
        or industrial processes,'' in the matter preceding 
        clause (i) and inserting in lieu thereof ``systems, 
        industrial processes, or water efficiency 
        applications,''; and
            (3) in subparagraph (B), by inserting ``or water 
        cost savings'' before the period at the end.

SEC. 2820. EXTENSION OF AUTHORITY TO ENTER INTO LEASES OF LAND FOR 
                    SPECIAL OPERATIONS ACTIVITIES.

    (a) Extension of Authority.--Subsection (d) of section 2680 
of title 10, United States Code, is amended in the first 
sentence by striking out ``September 30, 1995'' and inserting 
in lieu thereof ``September 30, 2000''.
    (b) Reporting Requirement.--Such section is further amended 
by adding at the end the following new subsection:
    ``(e) Reports.--Not later than March 1 of each year, the 
Secretary of Defense shall submit to the Committee on the Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report that--
            ``(1) identifies each leasehold interest acquired 
        during the previous fiscal year under subsection (a); 
        and
            ``(2) contains a discussion of each project for the 
        construction or modification of facilities carried out 
        pursuant to subsection (c) during such fiscal year.''.
    (c) Conforming Repeal.--Section 2863 of the National 
Defense Authorization Act for Fiscal Years 1992 and 1993 
(Public Law 102-190; 10 U.S.C. 2680 note) is amended by 
striking out subsection (b).

SEC. 2821. DISPOSITION OF AMOUNTS RECOVERED AS A RESULT OF DAMAGE TO 
                    REAL PROPERTY.

    (a) In General.--Chapter 165 of title 10, United States 
Code, is amended by inserting after section 2781 the following 
new section:

``Sec. 2782. Damage to real property: disposition of amounts recovered

    ``Except as provided in section 2775 of this title, amounts 
recovered for damage caused to real property under the 
jurisdiction of the Secretary of a military department or, with 
respect to the Defense Agencies, under the jurisdiction of the 
Secretary of Defense shall be credited to the account available 
for the repair or replacement of the real property at the time 
of recovery. In such amounts as are provided in advance in 
appropriation Acts, amounts so credited shall be available for 
use for the same purposes and under the same circumstances as 
other funds in the account.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2781 the following new item:

``2782. Damage to real property: disposition of amounts recovered.''.

SEC. 2822. PILOT PROGRAM TO PROVIDE INTEREST RATE BUY DOWN AUTHORITY ON 
                    LOANS FOR HOUSING WITHIN HOUSING SHORTAGE AREAS AT 
                    MILITARY INSTALLATIONS.

    (a) Short Title.--This section may be cited as the 
``Military Housing Assistance Act of 1995''.
    (b) Mortgage Assistance Payment Authority of the Secretary 
of Veterans Affairs.--(1) Chapter 37 of title 38, United States 
Code, is amended by inserting after section 3707 the following:

``Sec. 3708. Authority to buy down interest rates: pilot program

    ``(a) In order to enable the purchase of housing in areas 
where the supply of suitable military housing is inadequate, 
the Secretary may conduct a pilot program under which the 
Secretary may make periodic or lump sum assistance payments on 
behalf of an eligible veteran for the purpose of buying down 
the interest rate on a loan to that veteran that is guaranteed 
under this chapter for a purpose described in paragraph (1), 
(6), or (10) of section 3710(a) of this title.
    ``(b) An individual is an eligible veteran for the purposes 
of this section if--
            ``(1) the individual is a veteran, as defined in 
        section 3701(b)(4) of this title;
            ``(2) the individual submits an application for a 
        loan guaranteed under this chapter within one year of 
        an assignment of the individual to duty at a military 
        installation in the United States designated by the 
        Secretary of Defense as a housing shortage area;
            ``(3) at the time the loan referred to in 
        subsection (a) is made, the individual is an enlisted 
        member, warrant officer, or an officer (other than a 
        warrant officer) at a pay grade of O-3 or below;
            ``(4) the individual has not previously used any of 
        the individual's entitlement to housing loan benefits 
        under this chapter; and
            ``(5) the individual receives comprehensive 
        prepurchase counseling from the Secretary (or the 
        designee of the Secretary) before making application 
        for a loan guaranteed under this chapter.
    ``(c) Loans with respect to which the Secretary may 
exercise the buy down authority under subsection (a) shall--
            ``(1) provide for a buy down period of not more 
        than three years in duration;
            ``(2) specify the maximum and likely amounts of 
        increases in mortgage payments that the loans would 
        require; and
            ``(3) be subject to such other terms and conditions 
        as the Secretary may prescribe by regulation.
    ``(d) The Secretary shall promulgate underwriting standards 
for loans for which the interest rate assistance payments may 
be made under subsection (a). Such standards shall be based on 
the interest rate for the second year of the loan.
    ``(e) The Secretary or lender shall provide comprehensive 
prepurchase counseling to eligible veterans explaining the 
features of interest rate buy downs under subsection (a), 
including a hypothetical payment schedule that displays the 
increases in monthly payments to the mortgagor over the first 
five years of the mortgage term. For the purposes of this 
subsection, the Secretary may assign personnel to military 
installations referred to in subsection (b)(2).
    ``(f) There is authorized to be appropriated $3,000,000 
annually to carry out this section.
    ``(g) The Secretary may not guarantee a loan under this 
chapter after September 30, 1998, on which the Secretary is 
obligated to make payments under this section.''.
    (2) The table of sections at the beginning of chapter 37 of 
title 38, United States Code, is amended by inserting after the 
item relating to section 3707 to following new item:

``3708. Authority to buy down interest rates: pilot program.''.

    (c) Authority of Secretary of Defense.--
            (1) Reimbursement for buy down costs.--The 
        Secretary of Defense shall reimburse the Secretary of 
        Veterans Affairs for amounts paid by the Secretary of 
        Veterans Affairs to mortgagees under section 3708 of 
        title 38, United States Code, as added by subsection 
        (b).
            (2) Designation of housing shortage areas.--For 
        purposes of section 3708 of title 38, United States 
        Code, the Secretary of Defense may designate as a 
        housing shortage area a military installation in the 
        United States at which the Secretary determines there 
        is a shortage of suitable housing to meet the military 
        family needs of members of the Armed Forces and the 
        dependents of such members.
            (3) Report.--Not later than March 30, 1998, the 
        Secretary shall submit to Congress a report regarding 
        the effectiveness of the authority provided in section 
        3708 of title 38, United States Code, in ensuring that 
        members of the Armed Forces and their dependents have 
        access to suitable housing. The report shall include 
        the recommendations of the Secretary regarding whether 
        the authority provided in this subsection should be 
        extended beyond the date specified in paragraph (5).
            (4) Earmark.--Of the amount provided in section 
        2405(a)(11)(B), $10,000,000 for fiscal year 1996 shall 
        be available to carry out this subsection.
            (5) Sunset.--This subsection shall not apply with 
        respect to housing loans guaranteed after September 30, 
        1998, for which assistance payments are paid under 
        section 3708 of title 38, United States Code.

            Subtitle C--Defense Base Closure and Realignment

SEC. 2831. DEPOSIT OF PROCEEDS FROM LEASES OF PROPERTY LOCATED AT 
                    INSTALLATIONS BEING CLOSED OR REALIGNED.

    (a) Exception to Existing Requirements.--Section 2667(d) of 
title 10, United States Code, is amended--
            (1) in paragraph (1)(A)(ii), by inserting ``or 
        (5)'' after ``paragraph (4)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(5) Money rentals received by the United States from a 
lease under subsection (f) shall be deposited into the account 
established under section 2906(a) of the Defense Base Closure 
and Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note).''.
    (b) Corresponding Amendments to Base Closure Laws.--(1) 
Section 207(a)(7) of the Defense Authorization Amendments and 
Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 
2687 note) is amended by striking out ``transfer or disposal'' 
and inserting in lieu thereof ``lease, transfer, or disposal''.
    (2) Section 2906(a)(2) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2867 note) is amended--
            (A) in subparagraph (C), by striking out ``transfer 
        or disposal'' and inserting in lieu thereof ``lease, 
        transfer, or disposal''; and
            (B) in subparagraph (D), by striking out ``transfer 
        or disposal'' and inserting in lieu thereof ``lease, 
        transfer, or disposal''.

SEC. 2832. IN-KIND CONSIDERATION FOR LEASES AT INSTALLATIONS TO BE 
                    CLOSED OR REALIGNED.

    Section 2667(f) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(4) The Secretary concerned may accept under subsection 
(b)(5) services of a lessee for an entire installation to be 
closed or realigned under a base closure law, or for any part 
of such installation, without regard to the requirement in 
subsection (b)(5) that a substantial part of the installation 
be leased.''.

SEC. 2833. INTERIM LEASES OF PROPERTY APPROVED FOR CLOSURE OR 
                    REALIGNMENT.

    Section 2667(f) of title 10, United States Code, is amended 
by adding after paragraph (4), as added by section 2832 of this 
Act, the following new paragraph:
    ``(5)(A) Notwithstanding the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.), the scope of any 
environmental impact analysis necessary to support an interim 
lease of property under this subsection shall be limited to the 
environmental consequences of activities authorized under the 
proposed lease and the cumulative impacts of other past, 
present, and reasonably foreseeable future actions during the 
period of the proposed lease.
    ``(B) Interim leases entered into under this subsection 
shall be deemed not to prejudice the final disposal decision 
with respect to the property, even if final disposal of the 
property is delayed until completion of the term of the interim 
lease. An interim lease under this subsection shall not be 
entered into without prior consultation with the redevelopment 
authority concerned.
    ``(C) Subparagraphs (A) and (B) shall not apply to an 
interim lease under this subsection if authorized activities 
under the lease would--
            ``(i) significantly affect the quality of the human 
        environment; or
            ``(ii) irreversibly alter the environment in a way 
        that would preclude any reasonable disposal alternative 
        of the property concerned.''.

SEC. 2834. AUTHORITY TO LEASE PROPERTY REQUIRING ENVIRONMENTAL 
                    REMEDIATION AT INSTALLATIONS APPROVED FOR CLOSURE 
                    OR REALIGNMENT.

    Section 120(h)(3) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 
U.S.C.9620(h)(3)) is amended in the matter following subparagraph (C)--
            (1) by striking out the first sentence; and
            (2) by adding at the end, flush to the paragraph 
        margin, the following:
        ``The requirements of subparagraph (B) shall not apply 
        in any case in which the person or entity to whom the 
        real property is transferred is a potentially 
        responsible party with respect to such property. The 
        requirements of subparagraph (B) shall not apply in any 
        case in which the transfer of the property occurs or 
        has occurred by means of a lease, without regard to 
        whether the lessee has agreed to purchase the property 
        or whether the duration of the lease is longer than 55 
        years. In the case of a lease entered into after 
        September 30, 1995, with respect to real property 
        located at an installation approved for closure or 
        realignment under a base closure law, the agency 
        leasing the property, in consultation with the 
        Administrator, shall determine before leasing the 
        property that the property is suitable for lease, that 
        the uses contemplated for the lease are consistent with 
        protection of human health and the environment, and 
        that there are adequate assurances that the United 
        States will take all remedial action referred to in 
        subparagraph (B) that has not been taken on the date of 
        the lease.''.

SEC. 2835. FINAL FUNDING FOR DEFENSE BASE CLOSURE AND REALIGNMENT 
                    COMMISSION.

    Section 2902(k) of the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note) is amended by adding at the end the following 
new paragraph:
    ``(3)(A) The Secretary may transfer not more than $300,000 
from unobligated funds in the account referred to in 
subparagraph (B) for the purpose of assisting the Commission in 
carrying out its duties under this part during October, 
November, and December 1995. Funds transferred under the 
preceding sentence shall remain available until December 31, 
1995.
    ``(B) The account referred to in subparagraph (A) is the 
Department of Defense Base Closure Account established under 
section 207(a) of the Defense Authorization Amendments and Base 
Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 
note).''.

SEC. 2836. EXERCISE OF AUTHORITY DELEGATED BY THE ADMINISTRATOR OF 
                    GENERAL SERVICES.

    Section 2905(b)(2) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) is amended--
            (1) in subparagraph (A)--
                    (A) by striking out ``Subject to 
                subparagraph (C)'' in the matter preceding 
                clause (i) and inserting in lieu thereof 
                ``Subject to subparagraph (B)''; and
                    (B) by striking out ``in effect on the date 
                of the enactment of this Act'' each place it 
                appears in clauses (i) and (ii);
            (2) by striking out subparagraphs (B) and (C) and 
        inserting in lieu thereof the following new 
        subparagraph (B):
    ``(B) The Secretary may, with the concurrence of the 
Administrator of General Services--
            ``(i) prescribe general policies and methods for 
        utilizing excess property and disposing of surplus 
        property pursuant to the authority delegated under 
        paragraph (1); and
            ``(ii) issue regulations relating to such policies 
        and methods, which shall supersede the regulations 
        referred to in subparagraph (A) with respect to that 
        authority.''; and
            (3) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (C) and (D), respectively.

SEC. 2837. LEASE BACK OF PROPERTY DISPOSED FROM INSTALLATIONS APPROVED 
                    FOR CLOSURE OR REALIGNMENT.

    (a) Authority.--Section 2905(b)(4) of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2687 note) is amended--
            (1) by redesignating subparagraphs (C), (D), and 
        (E) as subparagraphs (D), (E), and (F), respectively; 
        and
            (2) by inserting after subparagraph (B) the 
        following new subparagraph (C):
    ``(C)(i) The Secretary may transfer real property at an 
installation approved for closure or realignment under this 
part (including property at an installation approved for 
realignment which will be retained by the Department of Defense 
or another Federal agency after realignment) to the 
redevelopment authority for the installation if the 
redevelopment authority agrees to lease, directly upon 
transfer, one or more portions of the property transferred 
under this subparagraph to the Secretary or to the head of 
another department or agency of the Federal Government. 
Subparagraph (B) shall apply to a transfer under this 
subparagraph.
    ``(ii) A lease under clause (i) shall be for a term of not 
to exceed 50 years, but may provide for options for renewal or 
extension of the term by the department or agency concerned.
    ``(iii) A lease under clause (i) may not require rental 
payments by the United States.
    ``(iv) A lease under clause (i) shall include a provision 
specifying that if the department or agency concerned ceases 
requiring the use of the leased property before the expiration 
of the term of the lease, the remainder of the lease term may 
be satisfied by the same or another department or agency of the 
Federal Government using the property for a use similar to the 
use under the lease. Exercise of the authority provided by this 
clause shall be made in consultation with the redevelopment 
authority concerned.''.
    (b) Use of Funds To Improve Leased Property.--
Notwithstanding any other provision of law, a department or 
agency of the Federal Government that enters into a lease of 
property under section 2905(b)(4)(C) of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2687 note), as amended by 
subsection (a), may improve the leased property using 
fundsappropriated or otherwise available to the department or agency 
for such purpose.

SEC. 2838. IMPROVEMENT OF BASE CLOSURE AND REALIGNMENT PROCESS 
                    REGARDING DISPOSAL OF PROPERTY.

    (a) Applicability.--Subparagraph (A) of section 2905(b)(7) 
of the Defense Base Closure and Realignment Act of 1990 (part A 
of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is 
amended to read as follows:
    ``(A) The disposal of buildings and property located at 
installations approved for closure or realignment under this 
part after October 25, 1994, shall be carried out in accordance 
with this paragraph rather than paragraph (6).''.
    (b) Agreements Under Redevelopment Plans.--Subparagraph 
(F)(ii)(I) of such section is amended in the second sentence by 
striking out ``the approval of the redevelopment plan by the 
Secretary of Housing and Urban Development under subparagraph 
(H) or (J)'' and inserting in lieu thereof ``the decision 
regarding the disposal of the buildings and property covered by 
the agreements by the Secretary of Defense under subparagraph 
(K) or (L)''.
    (c) Revision of Redevelopment Plans.--Subparagraph (I) of 
such section is amended--
            (1) in clause (i)(II), by inserting ``the Secretary 
        of Defense and'' before ``the Secretary of Housing and 
        Urban Development''; and
            (2) in clause (ii), by striking out ``the Secretary 
        of Housing and Urban Development'' and inserting in 
        lieu thereof ``such Secretaries''.
    (d) Disposal of Buildings and Property.--(1) Subparagraph 
(K) of such section is amended to read as follows:
    ``(K)(i) Upon receipt of a notice under subparagraph 
(H)(iv) or (J)(ii) of the determination of the Secretary of 
Housing and Urban Development that a redevelopment plan for an 
installation meets the requirements set forth in subparagraph 
(H)(i), the Secretary of Defense shall dispose of the buildings 
and property at the installation.
    ``(ii) For purposes of carrying out an environmental 
assessment of the closure or realignment of an installation, 
the Secretary of Defense shall treat the redevelopment plan for 
the installation (including the aspects of the plan providing 
for disposal to State or local governments, representatives of 
the homeless, and other interested parties) as part of the 
proposed Federal action for the installation.
    ``(iii) The Secretary of Defense shall dispose of buildings 
and property under clause (i) in accordance with the record of 
decision or other decision document prepared by the Secretary 
in accordance with the National Environmental Policy Act of 
1969 (42 U.S.C. 4331 et seq.). In preparing the record of 
decision or other decision document, the Secretary shall give 
substantial deference to the redevelopment plan concerned.
    ``(iv) The disposal under clause (i) of buildings and 
property to assist the homeless shall be without consideration.
    ``(v) In the case of a request for a conveyance under 
clause (i) of buildings and property for public benefit under 
section 203(k) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 484(k)) or sections 47151 
through 47153 of title 49, United States Code, the sponsoring 
Federal agency shall use the eligibility criteria set forth in 
such section or such subchapter (as the case may be) to 
determine the eligibility of the applicant and use proposed in 
the request for the public benefit conveyance. The 
determination of such eligibility should be made before 
submission of the redevelopment plan concerned under 
subparagraph (G).''.
    (2) Subparagraph (L) of such section is amended by striking 
out clauses (iii) and (iv) and inserting in lieu thereof the 
following new clauses (iii) and (iv):
    ``(iii) Not later than 90 days after the date of the 
receipt of a revised plan for an installation under 
subparagraph (J), the Secretary of Housing and Urban 
Development shall--
            ``(I) notify the Secretary of Defense and the 
        redevelopment authority concerned of the buildings and 
        property at an installation under clause (i)(IV) that 
        the Secretary of Housing and Urban Development 
        determines are suitable for use to assist the homeless; 
        and
            ``(II) notify the Secretary of Defense of the 
        extent to which the revised plan meets the criteria set 
        forth in subparagraph (H)(i).
    ``(iv)(I) Upon notice from the Secretary of Housing and 
Urban Development with respect to an installation under clause 
(iii), the Secretary of Defense shall dispose of buildings and 
property at the installation in consultation with the Secretary 
of Housing and Urban Development and the redevelopment 
authority concerned.
    ``(II) For purposes of carrying out an environmental 
assessment of the closure or realignment of an installation, 
the Secretary of Defense shall treat the redevelopment plan 
submitted by the redevelopment authority for the installation 
(including the aspects of the plan providing for disposal to 
State or local governments, representatives of the homeless, 
and other interested parties) as part of the proposed Federal 
action for the installation. The Secretary of Defense shall 
incorporate the notification of the Secretary of Housing and 
Urban Development under clause (iii)(I) as part of the proposed 
Federal action for the installation only to the extent, if any, 
that the Secretary of Defense considers such incorporation to 
be appropriate and consistent with the best and highest use of 
the installation as a whole, taking into consideration the 
redevelopment plan submitted by the redevelopment authority.
    ``(III) The Secretary of Defense shall dispose of buildings 
and property under subclause (I) in accordance with the record 
of decision or other decision document prepared by the 
Secretary in accordance with the National Environmental Policy 
Act of 1969 (42 U.S.C. 4331 et seq.). In preparing the record 
of decision or other decision document, the Secretary shall 
give deference to the redevelopment plan submitted by the 
redevelopment authority for the installation.
    ``(IV) The disposal under subclause (I) of buildings and 
property to assist the homeless shall be without consideration.
    ``(V) In the case of a request for a conveyance under 
subclause (I) of buildings and property for public benefit 
under section 203(k) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 484(k)) or sections 47151 
through 47153 of title 49, United States Code, the sponsoring 
Federal agency shall use the eligibility criteria set forth in 
such section or such subchapter (as the case may be) to 
determine the eligibility of the applicant and use proposed in 
the request for the public benefit conveyance. The 
determination of such eligibility should be made before 
submission of the redevelopment plan concerned under 
subparagraph (G).''.
    (e) Conforming Amendment.--Subparagraph (M)(i) of such 
section is amended by inserting ``or (L)'' after ``subparagraph 
(K)''.
    (f) Clarification of Participants In Process.--Such section 
is further amended by adding at the end the following new 
subparagraph:
    ``(P) For purposes of this paragraph, the term `other 
interested parties', in the case of an installation, includes 
any parties eligible for the conveyance of property of the 
installation under section 203(k) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 484(k)) or 
sections 47151 through 47153 of title 49, United States Code, 
whether or not the parties assist the homeless.''.

SEC. 2839. AGREEMENTS FOR CERTAIN SERVICES AT INSTALLATIONS BEING 
                    CLOSED.

    (a) 1988 Law.--Section 204(b)(8) of the Defense 
Authorization Amendments and Base Closure and Realignment Act 
(Public Law 100-526; 10 U.S.C. 2687 note) is amended by 
striking out subparagraph (A) and inserting in lieu thereof the 
following new subparagraph:
    ``(A) Subject to subparagraph (C), the Secretary may enter 
into agreements (including contracts, cooperative agreements, 
or other arrangements for reimbursement) with local governments 
for the provision of police or security services, fire 
protection services, airfield operation services, or other 
community services by such governments at military 
installations to be closed under this title if the Secretary 
determines that the provision of such services under such 
agreements is in the best interests of the Department of 
Defense.''.
    (b) 1990 Law.--Section 2905(b)(8) of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2867 note) is amended by striking 
out subparagraph (A) and inserting in lieu thereof the 
following new subparagraph:
    ``(A) Subject to subparagraph (C), the Secretary may enter 
into agreements (including contracts, cooperative agreements, 
or other arrangements for reimbursement) with local governments 
for the provision of police or security services, fire 
protection services, airfield operation services, or other 
community services by such governments at military 
installations to be closed under this part if the Secretary 
determines that the provision of such services under such 
agreements is in the best interests of the Department of 
Defense.''.

SEC. 2840. AUTHORITY TO TRANSFER PROPERTY AT MILITARY INSTALLATIONS TO 
                    BE CLOSED TO PERSONS WHO CONSTRUCT OR PROVIDE 
                    MILITARY FAMILY HOUSING.

    (a) 1988 Law.--Section 204 of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 
100-526; 10 U.S.C. 2687 note) is amended by adding at the end 
the following new subsection:
    ``(e) Transfer Authority in Connection With Construction or 
Provision of Military Family Housing.--(1) Subject to paragraph 
(2), the Secretary may enter into an agreement to transfer by 
deed real property or facilities located at or near an 
installation closed or to be closed under this title with any 
person who agrees, in exchange for the real property or 
facilities, to transfer to the Secretary housing units that are 
constructed or provided by the person and located at or near a 
military installation at which there is a shortage of suitable 
housing to meet the requirements of members of the Armed Forces 
and their dependents. The Secretary may not select real 
property for transfer under this paragraph if the property is 
identified in the redevelopment plan for the installation as 
items essential to the reuse or redevelopment of the 
installation.
    ``(2) A transfer of real property or facilities may be made 
under paragraph (1) only if--
            ``(A) the fair market value of the housing units to 
        be received by the Secretary in exchange for the 
        property or facilities to be transferred is equal to or 
        greater than the fair market value of such property or 
        facilities, as determined by the Secretary; or
            ``(B) in the event the fair market value of the 
        housing units is less than the fair market value of 
        property or facilities to be transferred, the recipient 
        of the property or facilities agrees to pay to the 
        Secretary the amount equal to the excess of the fair 
        market value of the property or facilities over the 
        fair market value of the housing units.
    ``(3) Notwithstanding section 207(a)(7), the Secretary may 
deposit funds received under paragraph (2)(B) in the Department 
of Defense Family Housing Improvement Fund established under 
section 2873(a) of title 10, United States Code.
    ``(4) The Secretary shall submit to the appropriate 
committees of Congress a report describing each agreement 
proposed to be entered into under paragraph (1), including the 
consideration to be received by the United States under the 
agreement. The Secretary may not enter into the agreement until 
the end of the 21-day period beginning on the date the 
appropriate committees of Congress receive the report regarding 
the agreement.
    ``(5) The Secretary may require any additional terms and 
conditions in connection with an agreement authorized by this 
subsection as the Secretary considers appropriate to protect 
the interests of the United States.''.
    (b) 1990 Law.--Section 2905 of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) is amended by adding at the end 
the following new subsection:
    ``(f) Transfer Authority in Connection With Construction or 
Provision of Military Family Housing.--(1) Subject to paragraph 
(2), the Secretary may enter into an agreement to transfer by 
deed real property or facilities located at or near an 
installation closed or to be closed under this part with any 
person who agrees, in exchange for the real property or 
facilities, to transfer to the Secretary housing units that are 
constructed or provided by the person and located at or near a 
military installation at which there is a shortage of suitable 
housing to meet the requirements of members of the Armed Forces 
and their dependents. The Secretary may not select real 
property for transfer under this paragraph if the property is 
identified in the redevelopment plan for the installation as 
property essential to the reuse or redevelopment of the 
installation.
    ``(2) A transfer of real property or facilities may be made 
under paragraph (1) only if--
            ``(A) the fair market value of the housing units to 
        be received by the Secretary in exchange for the 
        property or facilities to be transferred is equal to or 
        greater than the fair market value of such property or 
        facilities, as determined by the Secretary; or
            ``(B) in the event the fair market value of the 
        housing units is less than the fair market value of 
        property or facilities to be transferred, the recipient 
        of the property or facilities agrees to pay to the 
        Secretary the amount equal to the excess of the fair 
        market value of the property or facilities over the 
        fair market value of the housing units.
    ``(3) Notwithstanding paragraph (2) of section 2906(a), the 
Secretary may deposit funds received under paragraph (2)(B) in 
the Department of Defense Family Housing Improvement Fund 
established under section 2873(a) of title 10, United States 
Code.
    ``(4) The Secretary shall submit to the congressional 
defense committees a report describing each agreement proposed 
to be entered into under paragraph (1), including the 
consideration to be received by the United States under the 
agreement. The Secretary may not enter into the agreement until 
the end of the 30-day period beginning on the date the 
congressional defense committees receive the report regarding 
the agreement.
    ``(5) The Secretary may require any additional terms and 
conditions in connection with an agreement authorized by this 
subsection as the Secretary considers appropriate to protect 
the interests of the United States.''.
    (c) Regulations.--Not later than nine months after the date 
of the enactment of this Act, the Secretary of Defense shall 
prescribe any regulations necessary to carry out subsection (e) 
of section 204 of the Defense Authorization Amendments and Base 
Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 
note), as added by subsection (a), and subsection (f) of 
section 2905 of the Defense Base Closure and Realignment Act of 
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
2687 note), as added by subsection (b).

SEC. 2841. USE OF SINGLE BASE CLOSURE AUTHORITIES FOR DISPOSAL OF 
                    PROPERTY AND FACILITIES AT FORT HOLABIRD, MARYLAND.

    (a) Consolidation of Base Closure Authorities.--In the case 
of the property and facilities at Fort Holabird, Maryland, 
described in subsection (b), the Secretary of Defense shall 
dispose of such property and facilities in accordance with 
section 2905(b)(7) of the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note), as amended by section 2838 of this Act.
    (b) Covered Property and Facilities.--Subsection (a) 
applies to the following property and facilities at Fort 
Holabird, Maryland:
            (1) Property and facilities that were approved for 
        closure or realignment under title II of the Defense 
        Authorization Amendments and Base Closure and 
        Realignment Act (Public Law 100-526; 10 U.S.C. 2687 
        note), but have not been disposed of as of the date of 
        the enactment of this Act, including buildings 305 and 
        306 and the parking lots and other property associated 
        with such buildings.
            (2) Property and facilities that were approved in 
        1995 for closure or realignment under the Defense Base 
        Closure and Realignment Act of 1990 (part A of title 
        XXIX of Public Law 101-510; 10 U.S.C. 2687 note).
    (c) Use of Surveys and Other Evaluations of Property.--In 
carrying out the disposal of the property and facilities 
referred to in subsection (b)(1), the Secretary shall utilize 
any surveys and other evaluations of such property and 
facilities that were prepared by the Corps of Engineers before 
the date of the enactment of this Act as part of the process 
for the disposal of such property and facilities.

                 Subtitle D--Land Conveyances Generally

                        PART I--ARMY CONVEYANCES

SEC. 2851. TRANSFER OF JURISDICTION, FORT SAM HOUSTON, TEXAS.

    (a) Transfer of Land for National Cemetery.--The Secretary 
of the Army may transfer, without reimbursement, to the 
administrative jurisdiction of the Secretary of Veterans 
Affairs a parcel of real property (including any improvements 
thereon) consisting of approximately 53 acres and comprising a 
portion of Fort Sam Houston, Texas.
    (b) Use of Land.--The Secretary of Veterans Affairs shall 
use the real property transferred under subsection (a) as a 
national cemetery under chapter 24 of title 38, United States 
Code.
    (c) Legal Description.--The exact acreage and legal 
description of the real property to be transferred under this 
section shall be determined by a survey satisfactory to the 
Secretary of the Army. The cost of the survey shall be borne by 
the Secretary of Veterans Affairs.
    (d) Additional Terms and Conditions.--The Secretary of the 
Army may require such additional terms and conditions in 
connection with the transfer under this section as theSecretary 
of the Army considers appropriate to protect the interests of the 
United States.

SEC. 2852. TRANSFER OF JURISDICTION, FORT BLISS, TEXAS.

    (a) Transfer of Land for National Cemetery.--The Secretary 
of the Army may transfer, without reimbursement, to the 
administrative jurisdiction of the Secretary of Veterans 
Affairs a parcel of real property (including any improvements 
thereon) consisting of approximately 22 acres and comprising a 
portion of Fort Bliss, Texas.
    (b) Use of Land.--The Secretary of Veterans Affairs shall 
use the real property transferred under subsection (a) as an 
addition to the Fort Bliss National Cemetery and administer 
such real property pursuant to chapter 24 of title 38, United 
States Code.
    (c) Legal Description.--The exact acreage and legal 
description of the real property to be transferred under this 
section shall be determined by a survey satisfactory to the 
Secretary of the Army. The cost of the survey shall be borne by 
the Secretary of Veterans Affairs.
    (d) Additional Terms and Conditions.--The Secretary of the 
Army may require such additional terms and conditions in 
connection with the transfer under this section as the 
Secretary of the Army considers appropriate to protect the 
interests of the United States.

SEC. 2853. TRANSFER OF JURISDICTION AND LAND CONVEYANCE, FORT DEVENS 
                    MILITARY RESERVATION, MASSACHUSETTS.

    (a) Transfer of Land for Wildlife Refuge.--Subject to 
subsections (b) and (c), the Secretary of the Army shall 
transfer, without reimbursement, to the administrative 
jurisdiction of the Secretary of the Interior that portion of 
Fort Devens Military Reservation, Massachusetts, that is 
situated south of Massachusetts State Route 2, for inclusion in 
the Oxbow National Wildlife Refuge.
    (b) Land Conveyance.--Subject to subsection (c), the 
Secretary of the Army shall convey to the Town of Lancaster, 
Massachusetts (in this section referred to as the ``Town''), 
all right, title, and interest of the United States in and to a 
parcel of real property consisting of approximately 100 acres 
of the parcel available for transfer under subsection (a) and 
located adjacent to Massachusetts State Highway 70.
    (c) Requirements Relating to Transfer and Conveyance.--(1) 
The transfer under subsection (a) and the conveyance under 
subsection (b) may not be made unless the property to be 
transferred and conveyed is determined to be excess to the 
needs of the Department of Defense.
    (2) The transfer and conveyance shall be made as soon as 
practicable after the date on which the property is determined 
to be excess to the needs of the Department of Defense.
    (d) Legal Description.--(1) The exact acreage and legal 
description of the real property to be transferred under 
subsection (a) shall be determined by a survey mutually 
satisfactory to the Secretary of the Army and the Secretary of 
the Interior. The cost of the survey shall be borne by the 
Secretary of the Interior.
    (2) The exact acreage and legal description of the real 
property to be conveyed under subsection (b) shall be 
determined by a survey mutually satisfactory to the Secretary 
of the Army, the Secretary of the Interior, and the Board of 
Selectmen of the Town. The cost of the survey shall be borne by 
the Town.
    (e) Additional Terms and Conditions.--The Secretary of the 
Army may require such additional terms and conditions in 
connection with the transfer under subsection (a) and the 
conveyance under subsection (b) as the Secretary of the Army 
considers appropriate to protect the interests of the United 
States.

SEC. 2854. MODIFICATION OF LAND CONVEYANCE, FORT BELVOIR, VIRGINIA.

    (a) Designation of Recipient.--Subsection (a) of section 
2821 of the Military Construction Authorization Act for Fiscal 
Years 1990 and 1991 (division B of Public Law 101-189; 103 
Stat. 1658) is amended by striking out ``any grantee selected 
in accordance with subsection (e)'' and inserting in lieu 
thereof ``the County of Fairfax, Virginia (in this section 
referred to as the `grantee'),''.
    (b) Consideration.--Subsection (b)(1) of such section is 
amended by striking out subparagraph (B) and inserting in lieu 
thereof the following new subparagraph:
                    ``(B) grant title, free of liens and other 
                encumbrances, to the Department to such 
                facilities and, if not already owned by the 
                Department, to the underlying land; and''.
    (c) Content of Agreement.--Subsection (c) of such section 
is amended to read as follows:
    ``(c) Content of Agreement.--An agreement entered into 
under this section shall include the following:
            ``(1) A requirement that the grantee construct 
        facilities and make infrastructure improvements for the 
        Department of the Army that the Secretary determines 
        are necessary for the Department at Fort Belvoir and at 
        other sites at which activities will be relocated as a 
        result of the conveyance made under this section.
            ``(2) A requirement that the construction of 
        facilities and infrastructure improvements referred to 
        in paragraph (1) be carried out in accordance with 
        plans and specifications approved by the Secretary.
            ``(3) A requirement that the Secretary retain a 
        lien or other security interest against the property 
        conveyed to the grantee in the amount of the fair 
        market value of the property, as determined under 
        subsection (b)(2). The agreement will specify the terms 
        for releasing the lien or other security interest, in 
        whole or in part. In the event of default by the County 
        on its obligations under the terms of the agreement, 
        the Secretary shall enforce the lien or security 
        interest. The proceeds obtained through enforcing the 
        lien or security interest may be used by the Secretary 
        to construct facilities and make infrastructure 
        improvements in lieu of those provided for in the 
        agreement.''.
    (d) Surveys.--Subsection (g) of such section is amended by 
striking out the last sentence and inserting in lieu thereof 
the following: ``The grantee shall be responsible for 
completing any such survey without cost to the United 
States.''.
    (e) Conforming Amendments.--Such section is further 
amended--
            (1) in subsection (a), by striking out ``Subject to 
        subsections (b) through (h), the'' and inserting in 
        lieu thereof ``The'';
            (2) in subsection (b)(1), by striking out 
        ``subsection (c)(1)(D)'' both places it appears and 
        inserting in lieu thereof ``subsection (c)(1)(A)'';
            (3) by striking out subsections (e) and (f); and
            (4) by redesignating subsections (g) and (h) as 
        subsections (e) and (f), respectively.

SEC. 2855. LAND EXCHANGE, FORT LEWIS, WASHINGTON.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to Weyerhaeuser Real Estate Company, Tacoma, Washington 
(in this section referred to as ``WRECO''), all right, title, 
and interest of the United States in and to a parcel of real 
property at Fort Lewis, Washington, known as an unimproved 
portion of Tract 1000 (formerly being in the DuPont Steilacoom 
Road, consisting of approximately 1.23 acres), and Tract 26E 
(consisting of 0.03 acre).
    (b) Consideration.--As consideration for the conveyance 
authorized by subsection (a), WRECO shall convey or cause to be 
conveyed to the United States, by warranty deed acceptable to 
the Secretary, a 0.39 acre parcel of real property located 
adjacent to Fort Lewis, Washington, together with other 
consideration acceptable to the Secretary. The total 
consideration conveyed to the United States shall not be less 
than the fair market value of the land conveyed under 
subsection (a).
    (c) Determination of Fair Market Value.--The determinations 
of the Secretary regarding the fair market values of the 
parcels of real property and improvements to be conveyed 
pursuant to subsections (a) and (b) shall be final.
    (d) Description of Property.--The exact acreage and legal 
description of the parcels of real property to be conveyed 
pursuant to subsections (a) and (b) shall be determined by a 
survey satisfactory to the Secretary. The cost of the survey 
shall be borne by WRECO.
    (e) Effect on Existing Reversionary Interest.--The 
Secretary may enter into an agreement with the appropriate 
officials of Pierce County, Washington, under which--
            (1) the existing reversionary interest of Pierce 
        County in the lands to be conveyed by the United States 
        under subsection (a) is extinguished; and
            (2) the conveyance to the United States under 
        subsection (b) is made subject to a similar 
        reversionary interest in favor of Pierce County in the 
        lands conveyed under such subsection.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2856. LAND EXCHANGE, ARMY RESERVE CENTER, GAINESVILLE, GEORGIA.

    (a) Land Exchange Authorized.--The Secretary of the Army 
may convey to the City of Gainesville, Georgia (in this section 
referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property, together 
with any improvements thereon, consisting of approximately 4.2 
acres and located on Shallowford Road in Gainesville, Georgia, 
the site of the Army Reserve Center, Gainesville, Georgia.
    (b) Consideration.--As consideration for the conveyance 
authorized by subsection (a), the City shall--
            (1) convey to the United States all right, title, 
        and interest in and to a parcel of real property 
        consisting of approximately 8 acres located in the 
        Atlas Industrial Park, Gainesville, Georgia, that is 
        acceptable to the Secretary;
            (2) design and construct on such real property 
        suitable facilities (as determined by the Secretary) 
        for training activities of the Army Reserve to replace 
        facilities conveyed under subsection (a);
            (3) carry out, at cost to the City, any 
        environmental assessments and any other studies, 
        analyses, and assessments that may be required under 
        Federal law in connection with the land conveyances 
        under subsection (a) and paragraph (1) and the 
        construction under paragraph (2);
            (4) pay the Secretary the amount (as determined by 
        the Secretary) equal to the cost of relocating Army 
        Reserve units from the real property to be conveyed 
        under subsection (a) to the replacement facilities to 
        be constructed under paragraph (2); and
            (5) if the fair market value of the real property 
        conveyed by the Secretary under subsection (a) exceeds 
        the fair market value of the consideration provided by 
        the City under paragraphs (1) through (4), pay the 
        United States the amount equal to the amount of such 
        excess.
    (c) Determination of Fair Market Value.--The Secretary 
shall determine the fair market value of the real property to 
be conveyed under subsection (a) and of the consideration to be 
furnished by the City under subsection (b). Such determination 
shall be final.
    (d) Description of Property.--The exact acreage and legal 
description of the parcels of real property to be conveyed 
under subsections (a) and (b) shall be determined by a survey 
satisfactory to the Secretary. The cost of the survey shall be 
borne by the City.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances authorized by this section as the Secretary 
considers appropriate to protect the interests of the United 
States.

SEC. 2857. LAND CONVEYANCE, HOLSTON ARMY AMMUNITION PLANT, MOUNT 
                    CARMEL, TENNESSEE.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without reimbursement, to the City ofMount Carmel, 
Tennessee (in this section referred to as the ``City''), all right, 
title, and interest of the United States in and to a parcel of real 
property, including improvements thereon, consisting of approximately 
6.5 acres located at Holston Army Ammunition Plant, Tennessee. The 
property is located adjacent to the Mount Carmel Cemetery and is 
intended for expansion of the cemetery.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
City.
    (c) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2858. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT, CHARLESTOWN, 
                    INDIANA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the State of Indiana (in this 
section referred to as the ``State''), all right, title, and 
interest of the United States in and to a parcel of real 
property, including any improvements thereon, that consists of 
approximately 1125 acres at the inactivated Indiana Army 
Ammunition Plant in Charlestown, Indiana, and is the subject of 
a 25-year lease between the Secretary and the State.
    (b) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
State use the conveyed property for recreational purposes.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
State.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2859. LAND CONVEYANCE, FORT ORD, CALIFORNIA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to the City of Seaside, California (in this section 
referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property 
(including improvements thereon) consisting of approximately 
477 acres located in Monterey County, California, and 
comprising a portion of the former Fort Ord Military Complex. 
The real property to be conveyed to the City includes the two 
Fort Ord Golf Courses, Black Horse and Bayonet, and a portion 
of the Hayes Housing Facilities.
    (b) Consideration.--As consideration for the conveyance of 
the real property and improvements under subsection (a), the 
City shall pay to the United States an amount equal to the fair 
market value of the property to be conveyed, as determined by 
the Secretary.
    (c) Use and Deposit of Proceeds.--(1) From the funds paid 
by the City under subsection (b), the Secretary shall deposit 
in the Morale, Welfare, and Recreation Fund Account of the 
Department of the Army such amounts as may be necessary to 
cover morale, welfare, and recreation activities at Army 
installations in the general vicinity of Fort Ord during fiscal 
years 1996 through 2000. The amount deposited by the Secretary 
into the Account shall not exceed the fair market value, as 
established under subsection (b), of the two Fort Ord Golf 
Courses conveyed under subsection (a). The Secretary shall 
notify Congress of the amount to be deposited not later than 90 
days after the date of the conveyance.
    (2) The Secretary shall deposit the balance of any funds 
paid by the City under subsection (b), after deducting the 
amount deposited under paragraph (1), in the Department of 
Defense Base Closure Account 1990.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey mutually 
satisfactory to the Secretary and the City. The cost of the 
survey shall be borne by the City.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2860. LAND CONVEYANCE, PARKS RESERVE FORCES TRAINING AREA, DUBLIN, 
                    CALIFORNIA.

    (a) Conveyance Authorized.--(1) Except as provided in 
paragraph (2), the Secretary of the Army may convey to the 
County of Alameda, California (in this section referred to as 
the ``County''), all right, title, and interest of the United 
States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 42 acres 
located at Parks Reserve Forces Training Area, Dublin, 
California.
    (2) The conveyance authorized by this section shall not 
include any oil, gas, or mineral interest of the United States 
in the real property to be conveyed.
    (b) Consideration.--(1) As consideration for the conveyance 
under subsection (a)(1), the County shall provide the Army with 
the following services at the portion of Parks Reserve Forces 
Training Area retained by the Army:
            (A) Relocation of the main gate of the retained 
        Training Area from Dougherty Road to Dublin Boulevard 
        across from the Bay Area Rapid Transit District East 
        Dublin station, including the closure of the existing 
        main gate on Dougherty Road, construction of a security 
        facility, and construction of a roadway from the new 
        entrance to Fifth Street.
            (B) Enclosing and landscaping of the southern 
        boundary of the retained Training Area installation 
        located northerly of Dublin Boulevard.
            (C) Enclosing and landscaping of the eastern 
        boundary of the retained Training Area from Dublin 
        Boulevard to Gleason Drive.
            (D) Resurfacing of roadways within the retained 
        Training Area.
            (E) Provision of such other services in connection 
        with the retained Training Area, including relocation 
        or reconstruction of water lines, relocation or 
        reconstruction of sewer lines, construction of drainage 
        improvements, and construction of buildings, as the 
        Secretary and the County may determine to be 
        appropriate.
            (F) Provision for and funding of any environmental 
        mitigation that is necessary as a result of a change in 
        use of the conveyed property by the County.
    (2) The detailed specifications for the services to be 
provided under paragraph (1) may be determined and approved on 
behalf of the Secretary by the Commander of Parks Reserve 
Forces Training Area. The preparation costs of such 
specifications shall be borne by the County.
    (3) The fair market value of improvements and services 
received by the United States from the County under paragraph 
(1) must be equal to or exceed the appraised fair market value 
of the real property to be conveyed under subsection (a)(1). 
The appraisal of the fair market value of the property shall be 
subject to the Secretary's review and approval.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a)(1) shall be determined by a survey satisfactory 
to the Secretary. The cost of the survey shall be borne by the 
County.
    (d) Time for Transfer of Title.--The transfer of title to 
the County under subsection (a)(1) may be executed by the 
Secretary only upon the satisfactory guarantee by the County of 
completion of the services to be provided under subsection (b).
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a)(1) as the Secretary 
considers appropriate to protect the interests of the United 
States.

SEC. 2861. LAND CONVEYANCE, ARMY RESERVE CENTER, YOUNGSTOWN, OHIO.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the City of Youngstown, Ohio 
(in this section referred to as the ``City''), all right, 
title, and interest of the United States in and to a parcel of 
excess real property, including improvements thereon, that is 
located at 399 Miller Street in Youngstown, Ohio, and contains 
the Kefurt Army Reserve Center.
    (b) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
City retain the conveyed property for the use and benefit of 
the Youngstown Fire Department.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
City.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2862. LAND CONVEYANCE, ARMY RESERVE PROPERTY, FORT SHERIDAN, 
                    ILLINOIS.

    (a) Conveyance Authorized.--Subject to subsection (b), the 
Secretary of the Army may convey to any transferee selected 
under subsection (g) all right, title, and interest of the 
United States in and to a parcel of real property (including 
improvements thereon) at Fort Sheridan, Illinois, consisting of 
approximately 114 acres and comprising an Army Reserve area.
    (b) Requirement for Federal Screening of Property.--The 
Secretary may not carry out the conveyance of property 
authorized by subsection (a) unless the Secretary determines 
that no department or agency of the Federal Government will 
accept the transfer of the property.
    (c) Consideration.--(1) As consideration for the conveyance 
under subsection (a), the transferee selected under subsection 
(g) shall--
            (A) convey to the United States a parcel of real 
        property that meets the requirements of subsection (d);
            (B) design for and construct on the property 
        conveyed under subparagraph (A) such facilities 
        (including support facilities and infrastructure) to 
        replace the facilities conveyed pursuant to the 
        authority in subsection (a) as the Secretary considers 
        appropriate; and
            (C) pay the cost of relocating Army personnel in 
        the facilities located on the real property conveyed 
        pursuant to the authority in subsection (a) to the 
        facilities constructed under subparagraph (B).
    (2) The Secretary shall ensure that the fair market value 
of the consideration provided by the transferee under paragraph 
(1) is not less than the fair market value of the real property 
conveyed by the Secretary under subsection (a).
    (d) Requirements Relating to Property To Be Conveyed to 
United States.--The real property conveyed to the United States 
under subsection (c)(1)(A) by the transferee selected under 
subsection (g) shall--
            (1) be located not more than 25 miles from Fort 
        Sheridan;
            (2) be located in a neighborhood or area having 
        social and economic conditions similar to the social 
        and economic conditions of the area in which Fort 
        Sheridan is located; and
            (3) be acceptable to the Secretary.
    (e) Interim Relocation of Army Personnel.--Pending 
completion of the construction of all the facilities proposed 
to be constructed under subsection (c)(1)(B) by the transferee 
selected under subsection (g), the Secretary may relocate Army 
personnel in the facilities located on the property to be 
conveyed pursuant to the authority in subsection (a) to the 
facilities that have been constructed by the transferee under 
such subsection (c)(1)(B).
    (f) Determination of Fair Market Value.--The Secretary 
shall determine the fair market value of the real property to 
be conveyed under subsection (a) and of the consideration to be 
provided under subsection (c)(1). Such determination shall be 
final.
    (g) Selection of Transferee.--(1) The Secretary shall use 
competitive procedures for the selection of a transferee under 
subsection (a).
    (2) In evaluating the offers of prospective transferees, 
the Secretary shall--
            (A) consider such criteria as the Secretary 
        considers to be appropriate to determine whether 
        prospective transferees will be able to satisfy the 
        consideration requirements specified in subsection 
        (c)(1); and
            (B) consult with the communities and jurisdictions 
        in the vicinity of Fort Sheridan (including the City of 
        Lake Forest, the City of Highwood, and the City of 
        Highland Park and the County of Lake, Illinois) in 
        order to determine the most appropriate use of the 
        property to be conveyed.
    (h) Descriptions of Property.--The exact acreage and legal 
descriptions of the real property to be conveyed by the 
Secretary under subsection (a) and the real property to be 
conveyed under subsection (c)(1)(A) shall be determined by a 
survey satisfactory to the Secretary. The cost of the survey 
shall be borne by the transferee selected under subsection (g).
    (i) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2863. LAND CONVEYANCE, PROPERTY UNDERLYING CUMMINS APARTMENT 
                    COMPLEX, FORT HOLABIRD, MARYLAND.

    (a) Conveyance Authorized.--Notwithstanding any other 
provision of law, the Secretary of the Army may convey to the 
existing owner of the improvements thereon all right, title, 
and interest of the United States in and to a parcel of real 
property underlying the Cummins Apartment Complex at Fort 
Holabird, Maryland, that consists of approximately 6 acres, and 
any interest the United States may have in the improvements 
thereon.
    (b) Consideration.--As consideration for the conveyance 
under subsection (a), the owner of the improvements referred to 
in that subsection shall provide compensation to the United 
States in an amount equal to the fair market value (as 
determined by the Secretary) of the property interest to be 
conveyed.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey that is 
satisfactory to the Secretary.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2864. MODIFICATION OF EXISTING LAND CONVEYANCE, ARMY PROPERTY, 
                    HAMILTON AIR FORCE BASE, CALIFORNIA.

    (a) Application of Section.--The authority provided in 
subsection (b) shall apply only in the event that the purchaser 
purchases only a portion of the Sale Parcel referred to in 
section 9099 of the Department of Defense Appropriations Act, 
1993 (Public Law 102-396; 106 Stat. 1924) and exercises the 
purchaser's option to withdraw from the sale as to the rest of 
the Sale Parcel.
    (b) Conveyance Authority in Event of Partial Sale.--The 
Secretary of the Army may convey to the City of Novato, 
California (in this section referred to as the ``City'')--
            (1) that portion of the Sale Parcel (other than 
        Landfill 26 and an appropriate buffer area around it 
        and the groundwater treatment facility site) that is 
        not purchased as provided in subsection (a); and
            (2) any of the land referred to in subsection (e) 
        of such section 9099 that is not purchased by the 
        purchaser.
    (c) Consideration and Conditions on Conveyance.--The 
conveyance under subsection (b) shall be made as a public 
benefit transfer to the City for the sum of One Dollar, subject 
to the condition that the conveyed property be used for school, 
classroom, or other educational purposes or as a public park or 
recreation area.
    (d) Subsequent Conveyance by the City.--(1) If, within 10 
years after the conveyance under subsection (b), the City 
conveys all or any part of the conveyed property to a third 
party without the use restrictions specified in subsection (c), 
the City shall pay to the Secretary of the Army an amount equal 
to the proceeds received by the City from the conveyance, minus 
the demonstrated reasonable costs of making the conveyance and 
of any improvements made by the City to the property following 
its acquisition of the land (but only to the extent such 
improvements increase the value of the property conveyed). The 
Secretary of the Army shall deliver into the applicable closing 
escrow an acknowledgement of receipt of the proceeds and a 
release of the reverter right under subsection (e) as to the 
affected land, effective upon such receipt.
    (2) Until one year after the completion of the cleanup of 
contaminated soil in the Landfill located on the Sale Parcel 
and completion of the groundwater treatment facilities, any 
conveyance by the City must be at a per-acre price for the 
portion sold that is at least equal to the per-acre contract 
price paid by the purchaser for the portion of the Sale Parcel 
purchased under the Agreement and Modification for the purchase 
of the Sale Parcel by the purchaser. Thereafter, any conveyance 
by the City must be at a price at least equal to the fair 
market value of the portion sold.
    (3) This subsection shall not apply to a conveyance by the 
City to another public or quasi-public agency for public uses 
of the kind described in subsection (c).
    (e) Reversion.--If the Secretary of the Army determines 
that the City has failed to make a payment as required 
bysubsection (d)(1) or that any portion of the conveyed property 
retained by the City or conveyed under subsection (d)(3) is not being 
utilized in accordance with subsection (c), title to the applicable 
portion of such property shall revert to the United States at the 
election of the Administrator of the General Services Administration.
    (f) Special Conveyance Regarding Building 138 Parcel.--The 
Secretary of the Army may convey to the purchaser of the Sale 
Parcel the Building 138 parcel, which has been designated by 
the parties as Parcel A4. The per-acre price for the portion 
conveyed under this subsection shall be at least equal to the 
per-acre contract price paid by the purchaser for the portion 
of the Sale Parcel purchased under the Agreement and 
Modification, dated September 25, 1990, as amended.

                       PART II--NAVY CONVEYANCES

SEC. 2865. TRANSFER OF JURISDICTION, NAVAL WEAPONS INDUSTRIAL RESERVE 
                    PLANT, CALVERTON, NEW YORK.

    (a) Transfer Authorized.--Notwithstanding section 2854 of 
the Military Construction Authorization Act for Fiscal Year 
1993 (division B of Public Law 102-484; 106 Stat. 2626), as 
amended by section 2823 of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3058), the Secretary of the Navy may 
transfer, without reimbursement, to the administrative 
jurisdiction of the Secretary of Veterans Affairs a parcel of 
real property consisting of approximately 150 acres located 
adjacent to the Calverton National Cemetery, Calverton, New 
York, and comprising a portion of the buffer zone of the Naval 
Weapons Industrial Reserve Plant, Calverton, New York.
    (b) Use of Property.--The Secretary of Veterans Affairs 
shall use the real property transferred under subsection (a) as 
an addition to the Calverton National Cemetery and administer 
such real property pursuant to chapter 24 of title 38, United 
States Code.
    (c) Survey.--The cost of any survey necessary for the 
transfer of jurisdiction of the real property described in 
subsection (a) from the Secretary of the Navy to the Secretary 
of Veterans Affairs shall be borne by the Secretary of Veterans 
Affairs.
    (d) Additional Terms and Conditions.--The Secretary of the 
Navy may require such additional terms and conditions in 
connection with the transfer under this section as the 
Secretary of the Navy considers appropriate to protect the 
interests of the United States.

SEC. 2866. MODIFICATION OF LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL 
                    RESERVE PLANT, CALVERTON, NEW YORK.

    (a) Removal of Reversionary Interest; Addition of Lease 
Authority.--Subsection (c) of section 2833 of the Military 
Construction Authorization Act for Fiscal Year 1995 (division B 
of Public Law 103-337; 108 Stat. 3061) is amended to read as 
follows:
    ``(c) Lease Authority.--Until such time as the real 
property described in subsection (a) is conveyed by deed, the 
Secretary may lease the property, along with improvements 
thereon, to the Community Development Agency in exchange for 
security services, fire protection services, and maintenance 
services provided by the Community Development Agency for the 
property.''.
    (b) Conforming Amendment.--Subsection (e) of such section 
is amended by striking out ``subsection (a)'' and inserting in 
lieu thereof ``subsection (a) or a lease under subsection 
(c)''.

SEC. 2867. LAND CONVEYANCE ALTERNATIVE TO EXISTING LEASE AUTHORITY, 
                    NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA.

    Section 2834(b) of the Military Construction Authorization 
Act for Fiscal Year 1993 (division B of Public Law 102-484; 106 
Stat. 2614), as amended by section 2833 of the Military 
Construction Authorization Act for Fiscal Year 1994 (division B 
of Public Law 103-160; 107 Stat. 1896) and section 2821 of the 
Military Construction Authorization Act for Fiscal Year 1995 
(division B of Public Law 103-337; 108 Stat. 3057), is further 
amended by adding at the end the following new paragraphs:
    ``(4) In lieu of entering into a lease under paragraph (1), 
or in place of an existing lease under that paragraph, the 
Secretary may convey, without consideration, the property 
described in that paragraph to the City of Oakland, California, 
the Port of Oakland, California, the City of Alameda, 
California, or the City of Richmond, California, under such 
terms and conditions as the Secretary considers appropriate.
    ``(5) The exact acreage and legal description of any 
property conveyed under paragraph (4) shall be determined by a 
survey satisfactory to the Secretary. The cost of each survey 
shall be borne by the recipient of the property.''.

SEC. 2868. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE PLANT, MC 
                    GREGOR, TEXAS.

    (a) Conveyance Authorized.--(1) The Secretary of the Navy 
may convey, without consideration, to the City of McGregor, 
Texas (in this section referred to as the ``City''), all right, 
title, and interest of the United States in and to a parcel of 
real property, including any improvements thereon, containing 
the Naval Weapons Industrial Reserve Plant, McGregor, Texas.
    (2) After screening the facilities, equipment, and fixtures 
(including special tooling and special test equipment) located 
on the parcel for other uses by the Department of the Navy, the 
Secretary may include in the conveyance under paragraph (1) any 
facilities, equipment, and fixtures on the parcel not to be so 
used if the Secretary determines that manufacturing activities 
requiring the use of such facilities, equipment, and fixtures 
are likely to continue or be reinstated on the parcel after 
conveyance under paragraph (1).
    (b) Lease Authority.--Until such time as the real property 
described in subsection (a)(1) is conveyed by deed, the 
Secretary may lease the property, along with improvements 
thereon, to the City in exchange for security services, fire 
protection services, and maintenance services provided by the 
City for the property.
    (c) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
City, directly or through an agreement with a public or private 
entity, use the conveyed property (or offer the conveyed 
property for use) for economic redevelopment to replace all or 
a part of the economic activity being lost at the parcel.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a)(1) shall be determined by a survey satisfactory 
to the Secretary. The cost of the survey shall be borne by the 
City.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) or a lease under subsection 
(b) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2869. LAND CONVEYANCE, NAVAL SURFACE WARFARE CENTER, MEMPHIS, 
                    TENNESSEE.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey to the Memphis and Shelby County Port Commission, 
Memphis, Tennessee (in this section referred to as the 
``Port''), all right, title, and interest of the United States 
in and to a parcel of real property (including any improvements 
thereon) consisting of approximately 26 acres that is located 
at the Carderock Division, Naval Surface Warfare Center, 
Memphis Detachment, Presidents Island, Memphis, Tennessee.
    (b) Consideration.--As consideration for the conveyance of 
real property under subsection (a), the Port shall--
            (1) grant to the United States a restrictive 
        easement in and to a parcel of real property consisting 
        of approximately 100 acres that is adjacent to the 
        Memphis Detachment, Presidents Island, Memphis, 
        Tennessee; and
            (2) if the fair market value of the easement 
        granted under paragraph (1) is less than the fair 
        market value of the real property conveyed under 
        subsection (a), provide the United States such 
        additional consideration as the Secretary and the Port 
        jointly determine appropriate so that the value of the 
        consideration received by the United States under this 
        subsection is equal to or greater than the fair market 
        value of the real property conveyed under subsection 
        (a).
    (c) Condition of Conveyance.--The conveyance authorized by 
subsection (a) shall be carried out in accordance with the 
provisions of the Land Exchange Agreement between the United 
States and the Memphis and Shelby County Port Commission, 
Memphis, Tennessee.
    (d) Determination of Fair Market Value.--The Secretary 
shall determine the fair market value of the real property to 
be conveyed under subsection (a) and of the easement to be 
granted under subsection (b)(1). Such determinations shall be 
final.
    (e) Use of Proceeds.--The Secretary shall deposit any 
proceeds received under subsection (b)(2) as consideration for 
the conveyance of real property authorized under subsection (a) 
in the special account established pursuant to section 
204(h)(2) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 485(h)(2)).
    (f) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) and the easement to be granted under subsection 
(b)(1) shall be determined by a survey satisfactory to the 
Secretary. The cost of the survey shall be borne by the Port.
    (g) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance authorized by subsection (a) and the easement 
granted under subsection (b)(1) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2870. LAND CONVEYANCE, NAVY PROPERTY, FORT SHERIDAN, ILLINOIS.

    (a) Conveyance Authorized.--Subject to subsection (b), the 
Secretary of the Navy may convey to any transferee selected 
under subsection (i) all right, title, and interest of the 
United States in and to a parcel of real property (including 
any improvements thereon) at Fort Sheridan, Illinois, 
consisting of approximately 182 acres and comprising the Navy 
housing areas at Fort Sheridan.
    (b) Requirement for Federal Screening of Property.--The 
Secretary may not carry out the conveyance of property 
authorized by subsection (a) unless the Secretary determines 
that no department or agency of the Federal Government will 
accept the transfer of the property.
    (c) Consideration.--(1) As consideration for the conveyance 
under subsection (a), the transferee selected under subsection 
(i) shall--
            (A) convey to the United States a parcel of real 
        property that meets the requirements of subsection (d);
            (B) design for and construct on the property 
        conveyed under subparagraph (A) such housing facilities 
        (including support facilities and infrastructure) to 
        replace the housing facilities conveyed pursuant to the 
        authority in subsection (a) as the Secretary considers 
        appropriate;
            (C) pay the cost of relocating members of the Armed 
        Forces residing in the housing facilities located on 
        the real property conveyed pursuant to the authority in 
        subsection (a) to the housing facilities constructed 
        under subparagraph (B);
            (D) provide for the education of dependents of such 
        members under subsection (e); and
            (E) carry out such activities for the operation, 
        maintenance, and improvement of the facilities 
        constructed under subparagraph (B) as the Secretary and 
        the transferee jointly determine appropriate.
    (2) The Secretary shall ensure that the fair market value 
of the consideration provided by the transferee under paragraph 
(1) is not less than the fair market value of the property 
interest conveyed by the Secretary under subsection (a).
    (d) Requirements Relating to Property To Be Conveyed to 
United States.--The property interest conveyed to the United 
States under subsection (c)(1)(A) by the transferee selected 
under subsection (i) shall--
            (1) be located not more than 25 miles from the 
        Great Lakes Naval Training Center, Illinois;
            (2) be located in a neighborhood or area having 
        social and economic conditions similar to the social 
        and economic conditions of the area in which Fort 
        Sheridan is located; and
            (3) be acceptable to the Secretary.
    (e) Education of Dependents of Members of the Armed 
Forces.--In providing for the education of dependents of 
members of the Armed Forces under subsection (c)(1)(D), the 
transferee selected under subsection (i) shall ensure that such 
dependents may enroll at the schools of one or more school 
districts in the vicinity of the real property conveyed to the 
United States under subsection (c)(1)(A) which schools and 
districts--
            (1) meet such standards for schools and schools 
        districts as the Secretary shall establish; and
            (2) will continue to meet such standards after the 
        enrollment of such dependents regardless of the receipt 
        by such school districts of Federal impact aid.
    (f) Interim Relocation of Members of the Armed Forces.--
Pending completion of the construction of all the housing 
facilities proposed to be constructed under subsection 
(c)(1)(B) by the transferee selected under subsection (i), the 
Secretary may relocate--
            (1) members of the Armed Forces residing in housing 
        facilities located on the property to be conveyed 
        pursuant to the authority in subsection (a) to the 
        housing facilities that have been constructed by the 
        transferee under such subsection (c)(1)(B); and
            (2) other Government tenants located on such 
        property to other facilities.
    (g) Applicability of Certain Agreements.--The property 
conveyed by the Secretary pursuant to the authority in 
subsection (a) shall be subject to the Memorandum of 
Understanding concerning the Transfer of Certain Properties at 
Fort Sheridan, Illinois, dated August 8, 1991, between the 
Department of the Army and the Department of the Navy.
    (h) Determination of Fair Market Value.--The Secretary 
shall determine the fair market value of the real property 
interest to be conveyed under subsection (a) and of the 
consideration to be provided under subsection (c)(1). Such 
determination shall be final.
    (i) Selection of Transferee.--(1) The Secretary shall use 
competitive procedures for the selection of a transferee under 
subsection (a).
    (2) In evaluating the offers of prospective transferees, 
the Secretary shall--
            (A) consider such criteria as the Secretary 
        considers to be appropriate to determine whether 
        prospective transferees will be able to satisfy the 
        consideration requirements specified in subsection 
        (c)(1); and
            (B) consult with the communities and jurisdictions 
        in the vicinity of Fort Sheridan (including the City of 
        Lake Forest, the City of Highwood, and the City of 
        Highland Park and the County of Lake, Illinois) in 
        order to determine the most appropriate use of the 
        property to be conveyed.
    (j) Descriptions of Property.--The exact acreage and legal 
descriptions of the real property to be conveyed by the 
Secretary under subsection (a) and the real property to be 
conveyed under subsection (c)(1)(A) shall be determined by a 
survey satisfactory to the Secretary. The cost of the survey 
shall be borne by the transferee selected under subsection (i).
    (k) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2871. LAND CONVEYANCE, NAVAL COMMUNICATIONS STATION, STOCKTON, 
                    CALIFORNIA.

    (a) Conveyance Authorized.--Subject to subsection (b), the 
Secretrary of the Navy may convey to the Port of Stockton, 
California (in this section referred to as the ``Port''), all 
right, title, and interest of the United States in and to a 
parcel of real property, including any improvements thereon, 
consisting of approximately 1,450 acres at the Naval 
Communication Station, Stockton, California.
    (b) Requirement for Federal Screening of Property.--The 
Secretary may not carry out the conveyance of property 
authorized by subsection (a) unless the Secretary determines 
that no department or agency of the Federal Government will 
accept the transfer of the property.
    (c) Interim Lease.--Until such time as the real property 
described in subsection (a) is conveyed by deed, the Secretary 
may lease the property, along with improvements thereon, to the 
Port under terms and conditions satisfactory to the Secretary.
    (d) Consideration.--The conveyance may be made as a public 
benefit conveyance for port development as defined in section 
203 of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 484) if the Port satisfies the criteria in such 
section and the regulations prescribed to implement such 
section. If the Port fails to qualify for a public benefit 
conveyance and still desires to acquire the property, the Port 
shall pay to the United States an amount equal to the fair 
market value of the property to be conveyed, as determined by 
the Secretary.
    (e) Federal Lease of Conveyed Property.--As a condition for 
transfer of this property under subparagraph (a), the Secretary 
may require that the Port lease to the Department of Defense or 
any other Federal agency all or any part of the property being 
used by the Federal Government at the time of conveyance. Any 
such lease shall be made under the same terms and conditions as 
in force at the time of the conveyance. Such terms and 
conditions will continue to include payment to the Port for 
maintenance of facilities leased to the Federal Government. 
Such maintenance of the Federal premises shall be to the 
reasonable satisfaction of the United States,or as required by 
all applicable Federal, State, and local laws and ordinances.
    (f) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the Port.
    (g) Additional Terms.--The Secretary may require such 
additional terms and conditions in connection with the 
conveyance under subsection (a) or the lease under subsection 
(c) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2872. LEASE OF PROPERTY, NAVAL AIR STATION AND MARINE CORPS AIR 
                    STATION, MIRAMAR, CALIFORNIA.

    (a) Lease Authorized.--Notwithstanding section 2692(a)(1) 
of title 10, United States Code, the Secretary of the Navy may 
lease to the City of San Diego, California (in this subsection 
referred to as the ``City''), the parcel of real property, 
including improvements thereon, described in subsection (b) in 
order to permit the City to carry out activities on the parcel 
relating to solid waste management, including the operation and 
maintenance of one or more solid waste landfills. Pursuant to 
the lease, the Secretary may authorize the City to construct 
and operate on the parcel facilities related to solid waste 
management, including a sludge processing facility.
    (b) Covered Property.--The parcel of property to be leased 
under subsection (a) is a parcel of real property consisting of 
approximately 1,400 acres that is located at Naval Air Station, 
Miramar, California, or Marine Corps Air Station, Miramar, 
Cali- fornia.
    (c) Lease Term.--The lease authorized under subsection (a) 
shall be for an initial term of not more than 50 years. Under 
the lease, the Secretary may provide the City with an option to 
extend the lease for such number of additional periods of such 
length as the Secretary considers appropriate.
    (d) Form of Consideration.--The Secretary may provide in 
the lease under subsection (a) for the provision by the City of 
in-kind consideration under the lease.
    (e) Use of Money Rentals.--In such amounts as are provided 
in advance in appropriation Acts, the Secretary may use money 
rentals received by the Secretary under the lease authorized 
under subsection (a) to carry out the following programs at 
Department of the Navy installations that utilize the solid 
waste landfill or landfills located on the leased property:
            (1) Environmental programs, including natural 
        resource management programs, recycling programs, and 
        pollution prevention programs.
            (2) Programs to improve the quality of military 
        life, including programs to improve military 
        unaccompanied housing and military family housing.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the lease under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.
    (g) Definitions.--In this section, the terms ``sludge'', 
``solid waste'', and ``solid waste management'' have the 
meanings given such terms in paragraphs (26A), (27), and (28), 
respectively, of section 1004 of the Solid Waste Disposal Act 
(42 U.S.C. 6903).

                    PART III--AIR FORCE CONVEYANCES

SEC. 2874. LAND ACQUISITION OR EXCHANGE, SHAW AIR FORCE BASE, SOUTH 
                    CAROLINA.

    (a) Land Acquisition.--By means of an exchange of property, 
acceptance as a gift, or other means that do not require the 
use of appropriated funds, the Secretary of the Air Force may 
acquire all right, title, and interest in and to a parcel of 
real property (together with any improvements thereon) 
consisting of approximately 1,100 acres and located adjacent to 
the eastern end of Shaw Air Force Base, South Carolina, and 
extending to Stamey Livestock Road in Sumter County, South 
Carolina.
    (b) Land Exchange Authorized.--For purposes of acquiring 
the real property described in subsection (a), the Secretary 
may participate in a land exchange and convey all right, title, 
and interest of the United States in and to a parcel of real 
property in the possession of the Air Force if--
            (1) the Secretary determines that the land exchange 
        is in the best interests of the Air Force; and
            (2) the fair market value of the parcel to be 
        conveyed by the Secretary does not exceed the fair 
        market value of the parcel to be acquired by the 
        Secretary.
    (c) Determinations of Fair Market Value.--The Secretary 
shall determine the fair market value of the parcels of real 
property to be exchanged, accepted, or otherwise acquired 
pursuant to subsection (a) and exchanged pursuant to subsection 
(b). Such determinations shall be final.
    (d) Reversion of Gift Conveyance.--If the Secretary 
acquires the real property described in subsection (a) by way 
of gift, the Secretary may accept in the deed of conveyance 
terms or conditions that require that the land be reconveyed to 
the donor, or the heirs of the donor, if Shaw Air Force Base 
ceases operations and is closed.
    (e) Descriptions of Property.--The exact acreage and legal 
descriptions of the parcels of real property to be exchanged, 
accepted, or otherwise acquired pursuant to subsection (a) and 
exchanged pursuant to subsection (b) shall be determined by a 
survey satisfactory to the Secretary.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the acquisition under subsection (a) or conveyance under 
subsection (b) as the Secretary considers appropriate to 
protect the interests of the United States.

SEC. 2875. LAND CONVEYANCE, ELMENDORF AIR FORCE BASE, ALASKA.

    (a) Conveyance to Private Person Authorized.--The Secretary 
of the Air Force may convey to such private person as the 
Secretary considers appropriate, all right, title, and interest 
of the United States in and to a parcel of real 
propertyconsisting of approximately 31.69 acres that is located at 
Elmendorf Air Force Base, Alaska, and identified in land lease W-95-
507-ENG-58.
    (b) Consideration.--As consideration for the conveyance 
under subsection (a), the purchaser shall pay to the United 
States an amount equal to the fair market value of the real 
property to be conveyed, as determined by the Secretary. In 
determining the fair market value of the real property, the 
Secretary shall consider the property as encumbered by land 
lease W-95-507-ENG-58, with an expiration date of June 13, 
2024.
    (c) Condition of Conveyance.--The conveyance authorized by 
subsection (a) shall be subject to the condition that the 
purchaser of the property--
            (1) permit the lease of the apartment complex 
        located on the property by members of the Armed Forces 
        stationed at Elmendorf Air Force Base and their 
        dependents; and
            (2) maintain the apartment complex in a condition 
        suitable for such leases.
    (d) Deposit of Proceeds.--The Secretary shall deposit the 
amount received from the purchaser under subsection (b) in the 
special account established under section 204(h)(2) of the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 485(h)(2)).
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
purchaser of the real property.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2876. LAND CONVEYANCE, RADAR BOMB SCORING SITE, FORSYTH, MONTANA.

    (a) Conveyance Authorized.--The Secretary of the Air Force 
may convey, without consideration, to the City of Forsyth, 
Montana (in this section referred to as the ``City''), all 
right, title, and interest of the United States in and to the 
parcel of property (including any improvements thereon) 
consisting of approximately 58 acres located in Forsyth, 
Montana, which has served as a support complex and recreational 
facilities for the Radar Bomb Scoring Site, Forsyth, Montana.
    (b) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that the 
City--
            (1) utilize the property and recreational 
        facilities conveyed under that subsection for housing 
        and recreation purposes; or
            (2) enter into an agreement with an appropriate 
        public or private entity to lease such property and 
        facilities to that entity for such purposes.
    (c) Reversion.--If the Secretary determines at any time 
that the property conveyed under subsection (a) is not being 
utilized in accordance with paragraph (1) or paragraph (2) of 
subsection (b), all right, title, and interest in and to the 
conveyed property, including any improvements thereon, shall 
revert to the United States and the United States shall have 
the right of immediate entry onto the property.
    (d) Description of Property.--The exact acreage and legal 
description of the property conveyed under this section shall 
be determined by a survey satisfactory to the Secretary. The 
cost of the survey shall be borne by the City.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary determines 
appropriate to protect the interests of the United States.

SEC. 2877. LAND CONVEYANCE, RADAR BOMB SCORING SITE, POWELL, WYOMING.

    (a) Conveyance Authorized.--The Secretary of the Air Force 
may convey, without consideration, to the Northwest College 
Board of Trustees (in this section referred to as the 
``Board''), all right, title, and interest of the United States 
in and to a parcel of real property (including any improvements 
thereon) consisting of approximately 24 acres located in 
Powell, Wyoming, which has served as the location of a support 
complex, recreational facilities, and housing facilities for 
the Radar Bomb Scoring Site, Powell, Wyoming.
    (b) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
Board use the property conveyed under that subsection for 
housing and recreation purposes and for such other purposes as 
the Secretary and the Board jointly determine appropriate.
    (c) Reversionary Interest.--During the five-year period 
beginning on the date that the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed property is not being used in accordance with 
subsection (b), all right, title, and interest in and to the 
conveyed property, including any improvements thereon, shall 
revert to the United States and the United States shall have 
the right of immediate entry onto the property.
    (d) Description of Property.--The exact acreage and legal 
description of the property conveyed under this section shall 
be determined by a survey satisfactory to the Secretary. The 
cost of the survey shall be borne by the Board.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2878. LAND CONVEYANCE, AVON PARK AIR FORCE RANGE, FLORIDA.

    (a) Conveyance Authorized.--The Secretary of the Air Force 
may convey, without consideration, to Highlands County, Florida 
(in this section referred to as the ``County''), all right, 
title, and interest of the United States in and to a parcel of 
real property, together with any improvements thereon, located 
within the boundaries of the Avon Park Air Force Range near 
Sebring, Florida, which has previously served as the location 
ofa support complex and recreational facilities for the Avon 
Park Air Force Range.
    (b) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
County, directly or through an agreement with an appropriate 
public or private entity, use the conveyed property, including 
the support complex and recreational facilities, for operation 
of a juvenile or other correctional facility.
    (c) Reversionary Interest.--If the Secretary determines at 
any time that the property conveyed under subsection (a) is not 
being used in accordance with subsection (b), all right, title, 
and interest in the property, including any improvements 
thereon, shall revert to the United States, and the United 
States shall have the right of immediate entry onto the 
property.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
County.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

            Subtitle E--Land Conveyances Involving Utilities

SEC. 2881. CONVEYANCE OF RESOURCE RECOVERY FACILITY, FORT DIX, NEW 
                    JERSEY.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to Burlington County, New Jersey (in this section 
referred to as the ``County''), all right, title, and interest 
of the United States in and to a parcel of real property at 
Fort Dix, New Jersey, consisting of approximately six acres and 
containing a resource recovery facility, known as the Fort Dix 
resource recovery facility.
    (b) Related Easements.--The Secretary may grant to the 
County any easement that is necessary for access to and 
operation of the resource recovery facility conveyed under 
subsection (a).
    (c) Requirement Relating to Conveyance.--The Secretary may 
not carry out the conveyance of the resource recovery facility 
authorized by subsection (a) unless the County agrees to accept 
the facility in its existing condition at the time of the 
conveyance.
    (d) Conditions on Conveyance.--The conveyance of the 
resource recovery facility authorized by subsection (a) is 
subject to the following conditions:
            (1) That the County provide refuse and steam 
        service to Fort Dix, New Jersey, at the rate 
        established by the appropriate Federal or State 
        regulatory authority.
            (2) That the County comply with all applicable 
        environmental laws and regulations (including any 
        permit or license requirements) relating to the 
        resource recovery facility.
            (3) That the County assume full responsibility for 
        ownership, operation, maintenance, repair, and all 
        regulatory compliance requirements for the resource 
        recovery facility.
            (4) That the County not commence any expansion of 
        the resource recovery facility without approval of such 
        expansion by the Secretary.
    (e) Description of the Property.--The exact acreage and 
legal description of the real property to be conveyed under 
subsection (a), and of any easements to be granted under 
subsection (b), shall be determined by a survey satisfactory to 
the Secretary. The cost of such survey shall be borne by the 
County.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) and the grant of any 
easement under subsection (b) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2882. CONVEYANCE OF WATER AND WASTEWATER TREATMENT PLANTS, FORT 
                    GORDON, GEORGIA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to the city of Augusta, Georgia (in this section 
referred to as the ``City''), all right, title, and interest of 
the United States to several parcels of real property located 
at Fort Gordon, Georgia, and consisting of approximately seven 
acres each. The parcels are improved with a water filtration 
plant, water distribution system with storage tanks, sewage 
treatment plant, and sewage collection system.
    (b) Related Easements.--The Secretary may grant to the City 
any easement that is necessary for access to the real property 
conveyed under subsection (a) and operation of the water and 
wastewater treatment plants and distribution and collection 
systems conveyed under subsection (a).
    (c) Requirement Relating to Conveyance.--The Secretary may 
not carry out the conveyance of the water and wastewater 
treatment plants and distribution and collection systems 
authorized by subsection (a) unless the City agrees to accept 
the water and wastewater treatment plants and distribution and 
collection systems in their existing condition at the time of 
the conveyance.
    (d) Conditions on Conveyance.--The conveyance authorized by 
subsection (a) is subject to the following conditions:
            (1) That the City provide water and sewer service 
        to Fort Gordon, Georgia, at a rate established by the 
        appropriate Federal or State regulatory authority.
            (2) That the City comply with all applicable 
        environmental laws and regulations (including any 
        permit or license requirements) regarding the real 
        property conveyed under subsection (a).
            (3) That the City assume full responsibility for 
        ownership, operation, maintenance, repair, and all 
        regulatory compliance requirements for the water and 
        wastewater treatment plants and distribution and 
        collection systems.
            (4) That the City not commence any expansion of the 
        water and wastewater treatment plants and distribution 
        and collection systems without approval of such 
        expansion by the Secretary.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a), and of any easements granted under subsection 
(b), shall be determined by a survey satisfactory to the 
Secretary. The cost of such survey shall be borne by the City.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) and the grant of any 
easement under subsection (b) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2883. CONVEYANCE OF ELECTRICITY DISTRIBUTION SYSTEM, FORT IRWIN, 
                    CALIFORNIA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to the Southern California Edison Company, California 
(in this section referred to as the ``Company''), all right, 
title, and interest of the United States in and to the 
electricity distribution system located at Fort Irwin, 
California.
    (b) Description of System and Conveyance.--The electricity 
distribution system authorized to be conveyed under subsection 
(a) consists of approximately 115 miles of electricity 
distribution lines (including poles, switches, reclosers, 
transformers, regulators, switchgears, and service lines) and 
includes the equipment, fixtures, structures, and other 
improvements the Federal Government utilizes to provide 
electricity services at Fort Irwin. The system does not include 
any real property.
    (c) Related Easements.--The Secretary may grant to the 
Company any easement that is necessary for access to and 
operation of the electricity distribution system conveyed under 
subsection (a).
    (d) Requirement Relating to Conveyance.--The Secretary may 
not carry out the electricity distribution system authorized by 
subsection (a) unless the Company agrees to accept the 
electricity distribution system in its existing condition at 
the time of the conveyance.
    (e) Conditions on Conveyance.--The conveyance authorized by 
subsection (a) is subject to the following conditions:
            (1) That the Company provide electricity service to 
        Fort Irwin, California, at a rate established by the 
        appropriate Federal or State regulatory authority.
            (2) That the Company comply with all applicable 
        environmental laws and regulations (including any 
        permit or license requirements) regarding the 
        electricity distribution system.
            (3) That the Company assume full responsibility for 
        ownership, operation, maintenance, repair, and all 
        regulatory compliance requirements for the electricity 
        distribution system.
            (4) That the Company not commence any expansion of 
        the electricity distribution system without approval of 
        such expansion by the Secretary.
    (f) Description of Easement.--The exact acreage and legal 
description of any easement granted under subsection (c) shall 
be determined by a survey satisfactory to the Secretary. The 
cost of such survey shall be borne by the Company.
    (g) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) and the grant of any 
easement under subsection (c) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2884. CONVEYANCE OF WATER TREATMENT PLANT, FORT PICKETT, VIRGINIA.

    (a) Authority To Convey.--(1) The Secretary of the Army may 
convey to the Town of Blackstone, Virginia (in this section 
referred to as the ``Town''), all right, title, and interest of 
the United States in and to the property described in paragraph 
(2).
    (2) The property referred to in paragraph (1) is the 
following property located at Fort Pickett, Virginia:
            (A) A parcel of real property consisting of 
        approximately 10 acres, including a reservoir and 
        improvements thereon, the site of the Fort Pickett 
        water treatment plant.
            (B) Any equipment, fixtures, structures, or other 
        improvements (including any water transmission lines, 
        water distribution and service lines, fire hydrants, 
        water pumping stations, and other improvements) not 
        located on the parcel described in subparagraph (A) 
        that are jointly identified by the Secretary and the 
        Town as owned and utilized by the Federal Government in 
        order to provide water to and distribute water at Fort 
        Pickett.
    (b) Related Easements.--The Secretary may grant to the Town 
the following easements relating to the conveyance of the 
property authorized by subsection (a):
            (1) Such easements, if any, as the Secretary and 
        the Town jointly determine are necessary in order to 
        provide access to the water distribution system 
        referred to in paragraph (2) of such subsection for 
        maintenance, safety, and other purposes.
            (2) Such easements, if any, as the Secretary and 
        the Town jointly determine are necessary in order to 
        provide access to the finished water lines from the 
        system to the Town.
            (3) Such rights of way appurtenant, if any, as the 
        Secretary and the Town jointly determine are necessary 
        in order to satisfy requirements imposed by any 
        Federal, State, or municipal agency relating to the 
        maintenance of a buffer zone around the water 
        distribution system.
    (c) Water Rights.--The Secretary shall grant to the Town as 
part of the conveyance under subsection (a) all right, title, 
and interest of the United States in and to any water of the 
Nottoway River, Virginia, that is connected with the reservoir 
referred to in paragraph (2)(A) of such subsection. The grant 
of such water rights shall not impair the right that any other 
local jurisidiction may have to withdraw water from the 
Nottoway River, on or after the date of the enactment of this 
Act, pursuant to the law of the Commonwealth of Virginia.
    (d) Requirements Relating to Conveyance.--(1) The Secretary 
may not carry out the conveyance of the water distribution 
system authorized under subsection (a) unless the Town agrees 
to accept the system in its existing condition at the time of 
the conveyance.
    (2) The Secretary shall complete any environmental removal 
or remediation required under the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9601 et seq.) with respect to the system to be conveyed under 
this section before carrying out the conveyance.
    (e) Conditions on Conveyance.--The conveyance authorized in 
subsection (a) shall be subject to the following conditions:
            (1) That the Town reserve for provision to Fort 
        Pickett, and provide to Fort Pickett on demand, not 
        less than 1,500,000 million gallons per day of treated 
        water from the water distribution system.
            (2) That the Town provide water to and distribute 
        water at Fort Pickett at a rate established by the 
        appropriate Federal or State regulatory authority.
            (3) That the Town maintain and operate the water 
        distribution system in compliance with all applicable 
        Federal and State environmental laws and regulations 
        (including any permit and license requirements).
    (f) Description of Property.--The exact legal description 
of the property to be conveyed under subsection (a), of any 
easements granted under subsection (b), and of any water rights 
granted under subsection (c) shall be determined by a survey 
and other means satisfactory to the Secretary. The cost of any 
survey or other services performed at the direction of the 
Secretary under the authority in the preceding sentence shall 
be borne by the Town.
    (g) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance authorized under subsection (a), the easements 
granted under subsection (b), and the water rights granted 
under subsection (c) that the Secretary considers appropriate 
to protect the interests of the United States.

                       Subtitle F--Other Matters

SEC. 2891. AUTHORITY TO USE FUNDS FOR CERTAIN EDUCATIONAL PURPOSES.

    Section 2008 of title 10, United States Code, is amended by 
striking out ``section 10'' and all that follows through the 
period at the end and inserting in lieu thereof ``construction, 
as defined in section 8013(3) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7713(3)), or to carry out 
section 8008 of such Act (20 U.S.C. 7708), relating to the 
provision of assistance to certain school facilities under the 
impact aid program.''.

SEC. 2892. DEPARTMENT OF DEFENSE LABORATORY REVITALIZATION 
                    DEMONSTRATION PROGRAM.

    (a) Program Authorized.--The Secretary of Defense may carry 
out a program (to be known as the ``Department of Defense 
Laboratory Revitalization Demonstration Program'') for the 
revitalization of Department of Defense laboratories. Under the 
program, the Secretary may carry out minor military 
construction projects in accordance with subsection (b) and 
other applicable law to improve Department of Defense 
laboratories covered by the program.
    (b) Increased Maximum Amounts Applicable to Minor 
Construction Projects.--For purpose of any military 
construction project carried out under the program--
            (1) the amount provided in the second sentence of 
        subsection (a)(1) of section 2805 of title 10, United 
        States Code, shall be deemed to be $3,000,000;
            (2) the amount provided in subsection (b)(1) of 
        such section shall be deemed to be $1,500,000; and
            (3) the amount provided in subsection (c)(1)(B) of 
        such section shall be deemed to be $1,000,000.
    (c) Program Requirements.--(1) Not later than 30 days 
before commencing the program, the Secretary shall--
            (A) designate the Department of Defense 
        laboratories at which construction may be carried out 
        under the program; and
            (B) establish procedures for the review and 
        approval of requests from such laboratories to carry 
        out such construction.
    (2) The laboratories designated under paragraph (1)(A) may 
not include Department of Defense laboratories that are 
contractor owned.
    (3) The Secretary shall notify Congress of the laboratories 
designated under paragraph (1)(A).
    (d) Report.--Not later than February 1, 1998, the Secretary 
shall submit to Congress a report on the program. The report 
shall include the Secretary's conclusions and recommendations 
regarding the desirability of extending the authority set forth 
in subsection (b) to cover all Department of Defense 
laboratories.
    (e) Exclusivity of Program.--Nothing in this section may be 
construed to limit any other authority provided by law for any 
military construction project at a Department of Defense 
laboratory covered by the program.
    (f) Definitions.--In this section:
            (1) The term ``laboratory'' includes--
                    (A) a research, engineering, and 
                development center;
                    (B) a test and evaluation activity owned, 
                funded, and operated by the Federal Government 
                through the Department of Defense; and
                    (C) a supporting facility of a laboratory.
            (2) The term ``supporting facility'', with respect 
        to a laboratory, means any building or structure that 
        is used in support of research, development, test, and 
        evaluation at the laboratory.
    (g) Expiration of Authority.--The Secretary may not 
commence a construction project under the program after 
September 30, 1998.

SEC. 2893. AUTHORITY FOR PORT AUTHORITY OF STATE OF MISSISSIPPI TO USE 
                    NAVY PROPERTY AT NAVAL CONSTRUCTION BATTALION 
                    CENTER, GULFPORT, MISSISSIPPI.

    (a) Joint Use Agreement Authorized.--The Secretary of the 
Navy may enter into an agreement with the Port Authority of the 
State of Mississippi (in this section referred to as the ``Port 
Authority''), under which the Port Authority may use real 
property comprising up to 50 acres located at the Naval 
Construction Battalion Center, Gulfport, Mississippi (in this 
section referred to as the ``Center'').
    (b) Term of Agreement.--The agreement authorized under 
subsection (a) may be for an initial period of not more than 15 
years. Under the agreement, the Secretary shall provide the 
Port Authority with an option to extend the agreement for at 
least three additional periods of five years each.
    (c) Conditions on Use.--The agreement authorized under 
subsection (a) shall require the Port Authority--
            (1) to suspend operations under the agreement in 
        the event Navy contingency operations are conducted at 
        the Center; and
            (2) to use the property covered by the agreement in 
        a manner consistent with Navy operations conducted at 
        the Center.
    (d) Consideration.--(1) As consideration for the use of the 
property covered by the agreement under subsection (a), the 
Port Authority shall pay to the Navy an amount equal to the 
fair market rental value of the property, as determined by the 
Secretary taking into consideration the Port Authority's use of 
the property.
    (2) The Secretary may include a provision in the agreement 
requiring the Port Authority--
            (A) to pay the Navy an amount (as determined by the 
        Secretary) to cover the costs of replacing at the 
        Center any facilities vacated by the Navy on account of 
        the agreement or to construct suitable replacement 
        facilities for the Navy; and
            (B) to pay the Navy an amount (as determined by the 
        Secretary) for the costs of relocating Navy operations 
        from the vacated facilities to the replacement 
        facilities.
    (e) Congressional Notification.--The Secretary may not 
enter into the agreement authorized by subsection (a) until the 
end of the 21-day period beginning on the date on which the 
Secretary submits to Congress a report containing an 
explanation of the terms of the proposed agreement and a 
description of the consideration that the Secretary expects to 
receive under the agreement.
    (f) Use of Payment.--(1) In such amounts as are provided in 
advance in appropriation Acts, the Secretary may use amounts 
paid under subsection (d)(1) to pay for general supervision, 
administration, and overhead expenses and for improvement, 
maintenance, repair, construction, or restoration of the roads, 
railways, and facilities serving the Center.
    (2) In such amounts as are provided in advance in 
appropriation Acts, the Secretary may use amounts paid under 
subsection (d)(2) to pay for constructing new facilities, or 
making modifications to existing facilities, that are necessary 
to replace facilities vacated by the Navy on account of the 
agreement under subsection (a) and for relocating operations of 
the Navy from the vacated facilities to replacement facilities.
    (g) Construction by Port Authority.--The Secretary may 
authorize the Port Authority to demolish existing facilities 
located on the property covered by the agreement under 
subsection (a) and, consistent with the restriction specified 
in subsection (c)(2), construct new facilities on the property 
for joint use by the Port Authority and the Navy.
    (h) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the agreement authorized under subsection (a) as the Secretary 
considers appropriate to protect the interests of the United 
States.

SEC. 2894. PROHIBITION ON JOINT USE OF NAVAL AIR STATION AND MARINE 
                    CORPS AIR STATION, MIRAMAR, CALIFORNIA.

    The Secretary of the Navy may not enter into any agreement 
that provides for or permits civil aircraft to regularly use 
Naval Air Station or Marine Corps Air Station, Miramar, 
California.

SEC. 2895. REPORT REGARDING ARMY WATER CRAFT SUPPORT FACILITIES AND 
                    ACTIVITIES.

    Not later than February 15, 1996, the Secretary of the Army 
shall submit to Congress a report setting forth--
            (1) the location, assets, and mission of each Army 
        facility, active or reserve component, that supports 
        water transportation operations;
            (2) an infrastructure inventory and utilization 
        rate of each Army facility supporting water 
        transportation operations;
            (3) options for consolidating these operations to 
        reduce overhead; and
            (4) actions that can be taken to respond 
        affirmatively to requests from the residents of Marcus 
        Hook, Pennsylvania, to close the Army Reserve facility 
        located in Marcus Hook and make the facility available 
        for use by the community.

SEC. 2896. RESIDUAL VALUE REPORTS.

    (a) Reports Required.--The Secretary of Defense, in 
coordination with the Director of the Office of Management and 
Budget, shall submit to the congressional defense committees 
status reports on the results of residual value negotiations 
between the United States and Germany. Such status reports 
shall be submitted within 30 days after the receipt of such 
reports by the Office of Management and Budget.
    (b) Content of Status Reports.--The status reports required 
by subsection (a) shall include the following information:
            (1) The estimated residual value of United States 
        capital value and improvements to facilities in Germany 
        that the United States has turned over to Germany.
            (2) The actual value obtained by the United States 
        for each facility or installation turned over to 
        Germany.
            (3) The reasons for any difference between the 
        estimated and actual value obtained.

SEC. 2897. SENSE OF CONGRESS AND REPORT REGARDING FITZSIMONS ARMY 
                    MEDICAL CENTER, COLORADO.

    (a) Findings.--Congress makes the following findings:
            (1) Fitzsimons Army Medical Center in Aurora, 
        Colorado, was approved for closure in 1995 under the 
        Defense Base Closure and Realignment Act of 1990 (part 
        A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note).
            (2) The University of Colorado Health Sciences 
        Center and the University of Colorado Hospital 
        Authority are in urgent need of space to maintain their 
        ability to deliver health care to meet the growing 
        demand for their services.
            (3) Reuse of the Fitzsimons Army Medical Center at 
        the earliest opportunity would provide significant 
        benefit to the cities of Aurora, Colorado, and Denver, 
        Colorado.
            (4) Reuse of the Fitzsimons Army Medical Center by 
        the communities in the vicinity of the center will 
        ensure that the center is fully utilized, thereby 
        providing a benefit to such communities.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) determinations as to the use by other 
        departments and agencies of the Federal Government of 
        buildings and property at military installations 
        approved for closure under the Defense Base Closure and 
        Realignment Act of 1990, including Fitzsimons Army 
        Medical Center, Colorado, should be completed as soon 
        as practicable;
            (2) the Secretary of Defense should consider the 
        expedited transfer of appropriate facilities (including 
        facilities that remain operational) at such 
        installations to the redevelopment authorities for such 
        installations in order to ensure continuity of use of 
        such facilities after the closure of such 
        installations, in particular, the Secretary should 
        consider the expedited transfer of the Fitzsimons Army 
        Medical Center because of the significant preparation 
        underway by the redevelopment authority concerned;
            (3) the Secretary should not enter into leases with 
        redevelopment authorities for facilities at such 
        installations until the Secretary determines that such 
        leases fall within the categorical exclusions 
        established by the Secretary pursuant to the National 
        Environmental Policy Act (42 U.S.C. 4321 et seq.).
    (c) Report.--(1) Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report on the 
closure and redevelopment of Fitzsimons Army Medical Center.
    (2) The report shall include the following:
            (A) The results of the determinations as to the use 
        of buildings and property at Fitzsimons Army Medical 
        Center by other departments and agencies of the Federal 
        Government under section 2905(b)(1) of the Defense Base 
        Closure and Realignment Act of 1990.
            (B) A description of any actions taken to expedite 
        such determinations.
            (C) A discussion of any impediments raised as a 
        result of such determinations to the transfer or lease 
        of Fitzsimons Army Medical Center.
            (D) A description of any actions taken by the 
        Secretary to lease Fitzsimons Army Medical Center to 
        the redevelopment authority.
            (E) The results of any environmental reviews under 
        the National Environmental Policy Act in which such a 
        lease would fall into the categorical exclusions 
        established by the Secretary of the Army.
            (F) The results of the environmental baseline 
        survey regarding Fitzsimons Army Medical Center and a 
        finding of suitability or nonsuitability.

 TITLE XXIX--LAND CONVEYANCES INVOLVING JOLIET ARMY AMMUNITION PLANT, 
                                ILLINOIS

SEC. 2901. SHORT TITLE.

    This title may be cited as the ``Illinois Land Conservation 
Act of 1995''.

SEC. 2902. DEFINITIONS.

    For purposes of this title, the following definitions 
apply:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the United States 
        Environmental Protection Agency.
            (2) Agricultural purposes.--The term ``agricultural 
        purposes'' means the use of land for row crops, 
        pasture, hay, and grazing.
            (3) Arsenal.--The term ``Arsenal'' means the Joliet 
        Army Ammunition Plant located in the State of Illinois.
            (4) Arsenal land use concept.--The term ``Arsenal 
        land use concept'' means the land use proposals that 
        were developed and unanimously approved on May 30, 
        1995, by the Joliet Arsenal Citizen Planning 
        Commission.
            (5) CERCLA.--The term ``CERCLA'' means the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601 et seq.).
            (6) Environmental law.--The term ``environmental 
        law'' means all applicable Federal, State, and local 
        laws, regulations, and requirements related to 
        protection of human health, natural and cultural 
        resources, or the environment. Such term includes 
        CERCLA, the Solid Waste Disposal Act (42 U.S.C. 6901 et 
        seq.), the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.), the Clean Air Act (42 U.S.C. 7401 
        et seq.), the Federal Insecticide, Fungicide, and 
        Rodenticide Act (7 U.S.C. 136 et seq.), the Toxic 
        Substances Control Act (15 U.S.C. 2601 et seq.), and 
        the Safe Drinking Water Act (42 U.S.C. 300f et seq.).
            (7) Hazardous substance.--The term ``hazardous 
        substance'' has the meaning given such term by section 
        101(14) of CERCLA (42 U.S.C. 9601(14)).
            (8) MNP.--The term ``MNP'' means the Midewin 
        National Tallgrass Prairie established pursuant to 
        section 2914 and managed as a part of the National 
        Forest System.
            (9) Person.--The term ``person'' has the meaning 
        given such term by section 101(21) of CERCLA (42 U.S.C. 
        9601(21)).
            (10) Pollutant or contaminant.--The term 
        ``pollutant or contaminant'' has the meaning given such 
        term by section 101(33) of CERCLA (42 U.S.C. 9601(33)).
            (11) Release.--The term ``release'' has the meaning 
        given such term by section 101(22) of CERCLA (42 U.S.C. 
        9601(22)).
            (12) Response action.--The term ``response action'' 
        has the meaning given the term ``response'' by section 
        101(25) of CERCLA (42 U.S.C. 9601(25)).

   Subtitle A--Conversion of Joliet Army Ammunition Plant to Midewin 
                       National Tallgrass Prairie

SEC. 2911. PRINCIPLES OF TRANSFER.

    (a) Land Use Plan.--The Congress ratifies in principle the 
proposals generally identified by the land use plan which was 
developed by the Joliet Arsenal Citizen Planning Commission and 
unanimously approved on May 30, 1995.
    (b) Transfer Without Reimbursement.--The area constituting 
the Midewin National Tallgrass Prairie shall be transferred, 
without reimbursement, to the Secretary of Agriculture.
    (c) Management of MNP.--Management by the Secretary of 
Agriculture of those portions of the Arsenal transferred to the 
Secretary under this title shall be in accordance with sections 
2914 and 2915 regarding the Midewin National Tallgrass Prairie.
    (d) Security Measures.--The Secretary of the Army and the 
Secretary of Agriculture shall each provide and maintain 
physical and other security measures on such portion of the 
Arsenal as is under the administrative jurisdiction of such 
Secretary, unless the Secretary of the Army and the Secretary 
of Agriculture agree otherwise. Such security measures (which 
may include fences and natural barriers) shall include measures 
to prevent members of the public from gaining unauthorized 
access to such portions of the Arsenal as are under the 
administrative jurisdiction of such Secretary and that may 
endanger health or safety.
    (e) Cooperative Agreements.--The Secretary of the Army, the 
Secretary of Agriculture, and the Administrator are 
individually and collectively authorized to enter into 
cooperative agreements and memoranda of understanding among 
each other and with other affected Federal agencies, State and 
local governments, private organizations, and corporations to 
carry out the purposes for which the Midewin National Tallgrass 
Prairie is established.
    (f) Interim Activities of the Secretary of Agriculture.--
Prior to transfer and subject to such reasonable terms and 
conditions as the Secretary of the Army may prescribe, the 
Secretary of Agriculture may enter upon the Arsenal property 
for purposes related to planning, resource inventory, fish and 
wildlife habitat manipulation (which may include prescribed 
burning), and other such activities consistent with the 
purposes for which the Midewin National Tallgrass Prairie is 
established.

SEC. 2912. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND JURISDICTION 
                    OVER ARSENAL.

    (a) General Rule for Transfer of Jurisdiction.--
            (1) Transfer required subject to response 
        actions.--Subject to subsection (d), not later than 270 
        days after the date of the enactment of this title, the 
        Secretary of the Army shall transfer, without 
        reimbursement, to the Secretary of Agriculture those 
        portions of the Arsenal that--
                    (A) are identified on the map described in 
                subsection (e)(1) as appropriate for transfer 
                under this subsection to the Secretary of 
                Agriculture; and
                    (B) the Secretary of the Army and the 
                Administrator concur in finding that all 
                response actions have been taken under CERCLA 
                necessary to protect human health and the 
                environment with respect to any hazardous 
                substance remaining on the property.
            (2) Effect of less than complete transfer.--If the 
        concurrence requirement in paragraph (1)(B) results in 
        the transfer, within such 270-day period, of less than 
        all of the Arsenal property covered by paragraph 
        (1)(A), the Secretary of the Army and the Secretary of 
        Agriculture shall enter into a memorandum of 
        understanding providing for the performance by the 
        Secretary of the Army of the additional response 
        actions necessary to allow fulfillment of the 
        concurrence requirement with respect to such Arsenal 
        property. The memorandum of understanding shall be 
        entered into within 60 days of the end of such 270-day 
        period and shall include a schedule for the completion 
        of the additional response actions as soon as 
        practicable. Subject to subsection (d), the Secretary 
        of the Army shall transfer Arsenal property covered by 
        this paragraph to the Secretary of Agriculture as soon 
        as possible after the Secretary of the Army and the 
        Administrator concur that all additional response 
        actions have been taken under CERCLA necessary to 
        protect human health and the environment with respect 
        to any hazardous substance remaining on the property. 
        The Secretary of the Army may make transfers under this 
        paragraph on a parcel-by-parcel basis.
            (3) Rule of construction regarding concurrences.--
        For the purpose of reaching the concurrences required 
        by this subsection and subsection (b), if a response 
        action requires construction and installation of an 
        approved remedial design, the response action shall be 
        considered to have been taken when the construction and 
        installation of the approved remedial design is 
        completed and the remedy is demonstrated to the 
        satisfaction of the Administrator to be operating 
        properly and successfully.
    (b) Special Transfer Requirements for Certain Parcels.--
Subject to subsection (d), the Secretary of the Army shall 
transfer, without reimbursement, to the Secretary of 
Agriculture the Arsenal property known as LAP Area Sites L2, 
L3, and L5 and Manufacturing Area Site 1. The transfer shall 
occur as soon as possible after the Secretary of the Army and 
the Administrator concur that all response actions have been 
taken under CERCLA necessary to protect human health and the 
environment with respect to any hazardous substance remaining 
on the property. The Secretary of the Army may make transfers 
under this subsection on a parcel-by-parcel basis.
    (c) Documentation of Environmental Condition of Parcels; 
Assessment of Required Actions Under Other Environmental 
Laws.--
            (1) Documentation.--The Secretary of the Army and 
        the Administrator shall provide to the Secretary of 
        Agriculture all documentation and information that 
        exists on the date the documentation and information is 
        provided relating to the environmental condition of the 
        Arsenal property proposed for transfer under subsection 
        (a) or (b), including documentation that supports the 
        finding that all response actions have been taken under 
        CERCLA necessary to protect human health and the 
        environment with respect to any hazardous substance 
        remaining on the property.
            (2) Assessment.--The Secretary of the Army shall 
        provide to the Secretary of Agriculture an assessment, 
        based on information in existence at the time the 
        assessment is provided, indicating what further action, 
        if any, is required under any environmental law (other 
        than CERCLA) on the Arsenal property proposed for 
        transfer under subsection (a) or (b).
            (3) Time for submission of documentation and 
        assessment.--The documentation and assessments required 
        to be submitted to the Secretary of Agriculture under 
        this subsection shall be submitted--
                    (A) in the case of the transfers required 
                by subsection (a), not later than 210 days 
                after the date of the enactment of this title; 
                and
                    (B) in the case of the transfers required 
                by subsection (b), not later than 60 days 
                before the earliest date on which the property 
                could be transferred.
            (4) Submission of additional information.--The 
        Secretary of the Army and the Administrator shall have 
        a continuing obligation to provide to the Secretary of 
        Agriculture any additional information regarding the 
        environmental condition of property to be transferred 
        under subsection (a) or (b) as such information becomes 
        available.
    (d) Effect of Environmental Assessment.--
            (1) Authority of secretary of agriculture to 
        decline immediate transfer.--If a parcel of Arsenal 
        property to be transferred under subsection (a) or (b) 
        includes property for which the assessment under 
        subsection (c)(2) concludes further action is required 
        under any environmental law (other than CERCLA), the 
        Secretary of Agriculture may decline immediate transfer 
        of the parcel. With respect to such a parcel, the 
        Secretary of the Army and the Secretary of Agriculture 
        shall enter into a memorandum of understanding 
        providing for the performance by the Secretary of the 
        Army of the required actions identified in the Army 
        assessment. The memorandum of understanding shall be 
        entered into within 90 days after the date on which the 
        Secretary of Agriculture declines immediate transfer of 
        the parcel and shall include a schedule for the 
        completion of the required actions as soon as 
        practicable.
            (2) Eventual transfer.--In the case of a parcel of 
        Arsenal property that the Secretary of Agriculture 
        declines immediate transfer under paragraph (1), the 
        Secretary may accept transfer of the parcel at any time 
        after the original finding with respect to the parcel 
        that all response actions have been taken under CERCLA 
        necessary to protect human health and the environment 
        with respect to any hazardous substance remaining on 
        the property. The Secretary of Agriculture shall accept 
        transfer of the parcel as soon as possible after the 
        date on which all required further actions identified 
        in the assessment have been taken and the terms of any 
        memorandum of understanding have been satisfied.
    (e) Identification of Arsenal Property for Transfer.--
            (1) Map of proposed transfers.--The lands subject 
        to transfer to the Secretary of Agriculture under 
        subsections (a) and (b) and section 2916 are depicted 
        on the map dated September 22, 1995, which is on file 
        and available for public inspection at the Office of 
        the Chief of the Forest Service and the Office of the 
        Assistant Secretary of the Army for Installations, 
        Logistics and the Environment.
            (2) Method of effecting transfer.--The Secretary of 
        the Army shall effect the transfer of jurisdiction of 
        Arsenal property under subsections (a) and (b) and 
        section 2916 by publication of notices in the Federal 
        Register. The Secretary of Agriculture shall give prior 
        concurrence to the publication of such notices. Each 
        notice published in the Federal Register shall refer to 
        the parcel being transferred by legal description, 
        references to maps or surveys, or other forms of 
        description mutually acceptable to the Secretary of the 
        Army and the Secretary of Agriculture. The Secretary of 
        the Army shall provide, without reimbursement, to the 
        Secretary of Agriculture copies of all surveys and land 
        title information on lands transferred under this 
        section or section 2916.
    (f) Surveys.--All costs of necessary surveys for the 
transfer of jurisdiction of Arsenal property from the Secretary 
of the Army to the Secretary of Agriculture shall be borne by 
the Secretary of Agriculture.

SEC. 2913. RESPONSIBILITY AND LIABILITY.

    (a) Continued Liability of Secretary of the Army.--The 
transfers of Arsenal property under sections 2912 and 2916, and 
the requirements of such sections, shall not in any way affect 
the responsibilities and liabilities of the Secretary of the 
Army specified in this section. The Secretary of the Army shall 
retain any obligation or other liability at the Arsenal that 
the Secretary of the Army has under CERCLA or other 
environmental laws. Following transfer of a portion of the 
Arsenal under this subtitle, the Secretary of the Army shall be 
accorded any easement or access to the property that may be 
reasonably required by the Secretary to carry out the 
obligation or satisfy the liability.
    (b) Special Protections for Secretary of Agriculture.--The 
Secretary of Agriculture shall not be liable under any 
environmental law for matters which are related directly or 
indirectly to activities of the Secretary of the Army at the 
Arsenal or any party acting under the authority of the 
Secretary of the Army at the Arsenal, including any of the 
following:
            (1) Costs or performance of response actions 
        required under CERCLA at or related to the Arsenal.
            (2) Costs, penalties, fines, or performance of 
        actions related to noncompliance with any environmental 
        law at or related to the Arsenal or related to the 
        presence, release, or threat of release of any 
        hazardous substance, pollutant or contaminant, 
        hazardous waste, or hazardous material of any kind at 
        or related to the Arsenal, including contamination 
        resulting from migration of a hazardous substance, 
        pollutant or contaminant, hazardous waste, hazardous 
        material, or petroleum products or their derivatives.
            (3) Costs or performance of actions necessary to 
        remedy noncompliance or another problem specified in 
        paragraph (2).
    (c) Liability of Other Persons.--Nothing in this title 
shall be construed to effect, modify, amend, repeal, alter, 
limit or otherwise change, directly or indirectly, the 
responsibilities or liabilities under any environmental law of 
any person (including the Secretary of Agriculture), except as 
provided in subsection (b) with respect to the Secretary of 
Agriculture.
    (d) Payment of Response Action Costs.--A Federal agency 
that had or has operations at the Arsenal resulting in the 
release or threatened release of a hazardous substance or 
pollutant or contaminant for which that agency would be liable 
under any environmental law, subject to the provisions of this 
subtitle, shall pay the costs of related response actions and 
shall pay the costs of related actions to remediate petroleum 
products or the derivatives of the products, including motor 
oil and aviation fuel.
    (e) Consultation.--
            (1) Responsibility of secretary of agriculture.--
        The Secretary of Agriculture shall consult with the 
        Secretary of the Army with respect to the management by 
        the Secretary of Agriculture of real property included 
        in the Midewin National Tallgrass Prairie subject to 
        any response action or other action at the Arsenal 
        being carried out by or under the authority of the 
        Secretary of the Army under any environmental law. The 
        Secretary of Agriculture shall consult with the 
        Secretary of the Army prior to undertaking any 
        activities on the Midewin National Tallgrass Prairie 
        that may disturb the property to ensure that such 
        activities will not exacerbate contamination problems 
        or interfere with performance by the Secretary of the 
        Army of response actions at the property.
            (2) Responsibility of secretary of the army.--In 
        carrying out response actions at the Arsenal, the 
        Secretary of the Army shall consult with the Secretary 
        of Agriculture to ensure that such actions are carried 
        out in a manner consistent with the purposes for which 
        the Midewin National Tallgrass Prairie is established, 
        as specified in section 2914(c), and the other 
        provisions of sections 2914 and 2915.

SEC. 2914. ESTABLISHMENT AND ADMINISTRATION OF MIDEWIN NATIONAL 
                    TALLGRASS PRAIRIE.

    (a) Establishment.--On the effective date of the initial 
transfer of jurisdiction of portions of the Arsenal to the 
Secretary of Agriculture under section 2912(a), the Secretary 
ofAgriculture shall establish the Midewin National Tallgrass 
Prairie. The MNP shall--
            (1) be administered by the Secretary of 
        Agriculture; and
            (2) consist of the real property so transferred and 
        such other portions of the Arsenal subsequently 
        transferred under section 2912(b) or 2916 or acquired 
        under section 2914(d).
    (b) Administration.--
            (1) In general.--The Secretary of Agriculture shall 
        manage the Midewin National Tallgrass Prairie as a part 
        of the National Forest System in accordance with this 
        title and the laws, rules, and regulations pertaining 
        to the National Forest System, except that the 
        Bankhead-Jones Farm Tenant Act of 1937 (7 U.S.C. 1010-
        1012) shall not apply to the MNP.
            (2) Initial management activities.--In order to 
        expedite the administration and public use of the 
        Midewin National Tallgrass Prairie, the Secretary of 
        Agriculture may conduct management activities at the 
        MNP to effectuate the purposes for which the MNP is 
        established, as set forth in subsection (c), in advance 
        of the development of a land and resource management 
        plan for the MNP.
            (3) Land and resource management plan.--In 
        developing a land and resource management plan for the 
        Midewin National Tallgrass Prairie, the Secretary of 
        Agriculture shall consult with the Illinois Department 
        of Natural Resources and local governments adjacent to 
        the MNP and provide an opportunity for public comment. 
        Any parcel transferred to the Secretary of Agriculture 
        under this title after the development of a land and 
        resource management plan for the MNP may be managed in 
        accordance with such plan without need for an amendment 
        to the plan.
    (c) Purposes of the Midewin National Tallgrass Prairie.--
The Midewin National Tallgrass Prairie is established to be 
managed for National Forest System purposes, including the 
following:
            (1) To manage the land and water resources of the 
        MNP in a manner that will conserve and enhance the 
        native populations and habitats of fish, wildlife, and 
        plants.
            (2) To provide opportunities for scientific, 
        environmental, and land use education and research.
            (3) To allow the continuation of agricultural uses 
        of lands within the MNP consistent with section 
        2915(b).
            (4) To provide a variety of recreation 
        opportunities that are not inconsistent with the 
        preceding purposes.
    (d) Other Land Acquisition for MNP.--
            (1) Availability of land acquisition funds.--
        Notwithstanding section 7 of the Land and Water 
        Conservation Fund Act of 1965 (16 U.S.C. 460l-9), the 
        Secretary of Agriculture may use monies appropriated 
        from the Land and Water Conservation Fund established 
        under section 2 of such Act (16 U.S.C. 460l-5) for the 
        acquisition of lands and interests in land for 
        inclusion in the Midewin National Tallgrass Prairie.
            (2) Acquisition of lands.--The Secretary of 
        Agriculture may acquire lands or interests therein for 
        inclusion in the Midewin National Tallgrass Prairie by 
        donation, purchase, or exchange, except that the 
        acquisition of private lands for inclusion in the MNP 
        shall be on a willing seller basis only.
    (e) Cooperation With States, Local Governments and Other 
Entities.--In the management of the Midewin National Tallgrass 
Prairie, the Secretary of Agriculture is authorized and 
encouraged to cooperate with appropriate Federal, State and 
local governmental agencies, private organizations and 
corporations. Such cooperation may include cooperative 
agreements as well as the exercise of the existing authorities 
of the Secretary under the Cooperative Forestry Assistance Act 
of 1978 (16 U.S.C. 2101 et seq.) and the Forest and Rangeland 
Renewable Resources Research Act of 1978 (16 U.S.C. 1641 et 
seq.). The objects of such cooperation may include public 
education, land and resource protection, and cooperative 
management among government, corporate, and private landowners 
in a manner which furthers the purposes for which the Midewin 
National Tallgrass Prairie is established.

SEC. 2915. SPECIAL MANAGEMENT REQUIREMENTS FOR MIDEWIN NATIONAL 
                    TALLGRASS PRAIRIE.

    (a) Prohibition Against the Construction of New Through 
Roads.--No new construction of any highway, public road, or any 
part of the interstate system, whether Federal, State, or 
local, shall be permitted through or across any portion of the 
Midewin National Tallgrass Prairie. Nothing in this title shall 
preclude construction and maintenance of roads for use within 
the MNP, the granting of authorizations for utility rights-of-
way under applicable Federal law, or such access as is 
necessary. Nothing in this title shall preclude necessary 
access by the Secretary of the Army for purposes of restoration 
and cleanup as provided in this title.
    (b) Agricultural Leases and Special Use Authorizations.--
Within the Midewin National Tallgrass Prairie, use of the lands 
for agricultural purposes shall be permitted subject to the 
following terms and conditions:
            (1) If at the time of transfer of jurisdiction 
        under section 2912 or 2916 there exists any lease 
        issued by the Secretary of the Army or the Secretary of 
        Defense for agricultural purposes upon the parcel 
        transferred, the Secretary of Agriculture shall issue a 
        special use authorization to supersede the lease. The 
        terms of the special use authorization shall be 
        identical in substance to the lease that the special 
        use authorization is superseding, including the 
        expiration date and any payments owed the United 
        States. On issuance of the special use authorization, 
        the lease shall become void.
            (2) In addition to the authority provided in 
        paragraph (1), the Secretary of Agriculture may issue 
        special use authorizations to persons for use of the 
        Midewin National Tallgrass Prairie for agricultural 
        purposes. Special use authorizations issued pursuant to 
        this paragraph shall include terms and conditions as 
        the Secretary of Agriculture may deem appropriate.
            (3) No agricultural special use authorization shall 
        be issued for agricultural purposes which has a term 
        extending beyond the date 20 years from the date of the 
        enactment of this title, except that nothing in this 
        title shall preclude the Secretary of Agriculture from 
        issuing agricultural special use authorizations or 
        grazing permits which are effective after twenty years 
        from the date of enactment of this title for purposes 
        primarily related to erosion control, provision for 
        food and habitat for fish and wildlife, or other 
        resource management activities consistent with the 
        purposes of the Midewin National Tallgrass Prairie.
    (c) Treatment of Rental Fees.--Monies received under a 
special use authorization issued under subsection (b) shall be 
subject to distribution to the State of Illinois and affected 
counties pursuant to the Act of May 23, 1908, and section 13 of 
the Act of March 1, 1911 (16 U.S.C. 500). All monies not 
distributed pursuant to such Acts shall be covered into the 
Treasury and shall constitute a special fund (to be known as 
the ``MNP Rental Fee Account''). The Secretary of Agriculture 
may use amounts in the fund, until expended and without fiscal 
year limitation, to cover the cost to the United States of 
prairie improvement work at the Midewin National Tallgrass 
Prairie. Any amounts in the fund that the Secretary of 
Agriculture determines to be in excess of the cost of doing 
such work shall be transferred, upon such determination, to 
miscellaneous receipts, Forest Service Fund, as a National 
Forest receipt of the fiscal year in which the transfer is 
made.
    (d) User Fees.--The Secretary of Agriculture is authorized 
to charge reasonable fees for the admission, occupancy, and use 
of the Midewin National Tallgrass Prairie and may prescribe a 
fee schedule providing for reduced or a waiver of fees for 
persons or groups engaged in authorized activities including 
those providing volunteer services, research, or education. The 
Secretary shall permit admission, occupancy, and use at no 
additional charge for persons possessing a valid Golden Eagle 
Passport or Golden Age Passport.
    (e) Salvage of Improvements.--The Secretary of Agriculture 
may sell for salvage value any facilities and improvements 
which have been transferred to the Secretary pursuant to this 
title.
    (f) Treatment of User Fees and Salvage Receipts.--Monies 
collected pursuant to subsections (d) and (e) shall be covered 
into the Treasury and constitute a special fund (to be known as 
the ``Midewin National Tallgrass Prairie Restoration Fund''). 
The Secretary of Agriculture may use amounts in the fund, in 
such amounts as are provided in advance in appropriation Acts, 
for restoration and administration of the Midewin National 
Tallgrass Prairie, including construction of a visitor and 
education center, restoration of ecosystems, construction of 
recreational facilities (such as trails), construction of 
administrative offices, and operation and maintenance of the 
MNP. The Secretary of Agriculture shall include the MNP among 
the areas under the jurisdiction of the Secretary selected for 
inclusion in any cost recovery or any pilot program of the 
Secretary for the collection, use, and distribution of user 
fees.

SEC. 2916. SPECIAL TRANSFER RULES FOR CERTAIN ARSENAL PARCELS INTENDED 
                    FOR MNP.

    (a) Description of Parcels.--The following areas of the 
Arsenal may be transferred under this section:
            (1) Study Area 2, explosive burning ground.
            (2) Study Area 3, flashing ground.
            (3) Study Area 4, lead azide area.
            (4) Study Area 10, toluene tank farms.
            (5) Study Area 11, landfill.
            (6) Study Area 12, sellite manufacturing area.
            (7) Study Area 14, former pond area.
            (8) Study Area 15, sewage treatment plan.
            (9) Study Area L1, load assemble packing area, 
        group 61.
            (10) Study Area L4, landfill area.
            (11) Study Area L7, group 1.
            (12) Study Area L8, group 2.
            (13) Study Area L9, group 3.
            (14) Study Area L10, group 3A.
            (15) Study Area L14, group 4.
            (16) Study Area L15, group 5.
            (17) Study Area L18, group 8.
            (18) Study Area L19, group 9.
            (19) Study Area L33, PVC area.
            (20) Any other lands proposed for transfer as 
        depicted on the map described in section 2912(e)(1) and 
        not otherwise specifically identified for transfer 
        under this subtitle.
    (b) Information Regarding Environmental Condition of 
Parcels; Assessment of Required Actions Under Other 
Environmental Laws.--
            (1) Information.--Not later than 180 days after the 
        date on which the Secretary of the Army and the 
        Administrator concur in finding that, with respect to a 
        parcel of Arsenal property described in subsection (a), 
        all response actions have been taken under CERCLA 
        necessary to protect human health and the environment 
        with respect to any hazardous substance remaining on 
        the parcel, the Secretary of the Army and the 
        Administrator shall provide to the Secretary of 
        Agriculture all information that exists on such date 
        regarding the environmental condition of the parcel and 
        the implementation of any response action, including 
        information regarding the effectiveness of the response 
        action.
            (2) Assessment.--At the same time as information is 
        provided under paragraph (1) with regard to a parcel of 
        Arsenal property described in subsection (a), the 
        Secretary of the Army shall provide to the Secretary of 
        Agriculture an assessment, based on information in 
        existence at the time the assessment is provided, 
        indicating what further action, if any, is required 
        under any environmental law (other than CERCLA) with 
        respect to the parcel.
            (3) Submission of additional information.--The 
        Secretary of the Army and the Administrator shall have 
        a continuing obligation to provide to the Secretary of 
        Agriculture any additional information regarding the 
        environmental condition of a parcel of the Arsenal 
        property described in subsection (a) as such 
        information becomes available.
    (c) Offer of Transfer.--Not later than 180 days after the 
date on which information is provided under subsection (b)(1) 
with regard to a parcel of the Arsenal property described in 
subsection (a), the Secretary of the Army shall offer the 
Secretary of Agriculture the option of accepting a transfer of 
the parcel, without reimbursement, to be added to the Midewin 
National Tallgrass Prairie. The transfer shall be subject to 
the terms and conditions of this subtitle, including the 
liability provisions contained in section 2913. The Secretary 
of Agriculture has the option to accept or decline the offered 
transfer. The transfer of property under this section may be 
made on a parcel-by-parcel basis.
    (d) Effect of Environmental Assessment.--
            (1) Authority of secretary of agriculture to 
        decline transfer.--If a parcel of Arsenal property 
        described in subsection (a) includes property for which 
        the assessment under subsection (b)(2) concludes 
        further action is required under any other 
        environmental law, the Secretary of Agriculture may 
        decline any transfer of the parcel. Alternatively, the 
        Secretary of Agriculture may decline immediate transfer 
        of the parcel and enter into a memorandum of 
        understanding with the Secretary of the Army providing 
        for the performance by the Secretary of the Army of the 
        required actions identified in the Army assessment with 
        respect to the parcel. The memorandum of understanding 
        shall be entered into within 90 days, or such later 
        date as the Secretaries may establish, after the date 
        on which the Secretary of Agriculture declines 
        immediate transfer of the parcel and shall include a 
        schedule for the completion of the required actions as 
        soon as practicable.
            (2) Eventual transfer.--The Secretary of 
        Agriculture may accept or decline at any time for any 
        reason the transfer of a parcel covered by this 
        section. However, if the Secretary of Agriculture and 
        the Secretary of the Army enter into a memorandum of 
        understanding under paragraph (1) providing for 
        transfer of the parcel, the Secretary of Agriculture 
        shall accept transfer of the parcel as soon as possible 
        after the date on which all required further actions 
        identified in the assessment have been taken and the 
        requirements of the memorandum of understanding have 
        been satisfied.
    (e) Rule of Construction Regarding Concurrences.--For the 
purpose of the reaching the concurrence required by subsection 
(b)(1), if a response action requires construction and 
installation of an approved remedial design, the response 
action shall be considered to have been taken when the 
construction and installation of the approved remedial design 
is completed and the remedy is demonstrated to the satisfaction 
of the Administrator to be operating properly and successfully.
    (f) Inclusions and Exceptions.--
            (1) Inclusions.--The parcels of Arsenal property 
        described in subsection (a) shall include all 
        associated inventoried buildings and structures as 
        identified in the Joliet Army Ammunition Plant 
        Plantwide Building and Structures Report and the 
        contaminate study sites for both the manufacturing and 
        load assembly and packing sites of the Arsenal as shown 
        in the Dames and Moore Final Report, Phase 2 Remedial 
        Investigation Manufacturing (MFG) Area Joliet Army 
        Ammunition Plant, Joliet, Illinois (May 30, 1993, 
        Contract No. DAAA15-90-D-0015 task order No. 6 prepared 
        for the United States Army Environmental Center).
            (2) Exception.--The parcels described in subsection 
        (a) shall not include the property at the Arsenal 
        designated for transfer or conveyance under subtitle B.

  Subtitle B--Other Land Conveyances Involving Joliet Army Ammunition 
                                 Plant

SEC. 2921. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR A 
                    NATIONAL CEMETERY.

    (a) Conveyance Authorized.--Subject to section 2931, the 
Secretary of the Army may transfer, without reimbursement, to 
the Secretary of Veterans Affairs the parcel of real property 
at the Arsenal described in subsection (b) for use as a 
national cemetery operated as part of the National Cemetery 
System of the Department of Veterans Affairs under chapter 24 
of title 38, United States Code.
    (b) Description of Property.--The real property authorized 
to be transferred under subsection (a) is a parcel of real 
property at the Arsenal consisting of approximately 982 acres, 
the approximate legal description of which includes part of 
sections 30 and 31, Jackson Township, Township 34 North, Range 
10 East, and part of sections 25 and 36, Channahon Township, 
Township 34 North, Range 10 East, Will County, Illinois, as 
depicted in the Arsenal land use concept.
    (c) Security Measures.--The Secretary of Veterans Affairs 
shall provide and maintain physical and other security measures 
on the real property transferred under subsection (a). Such 
security measures (which may include fences and natural 
barriers) shall include measures to prevent members of the 
public from gaining unauthorized access to the portion of the 
Arsenal that is under the administrative jurisdiction of the 
Secretary of Veterans Affairs and that may endanger health or 
safety.
    (d) Surveys.--All costs of necessary surveys for the 
transfer of jurisdiction of Arsenal properties from the 
Secretary of the Army to the Secretary of Veterans Affairs 
shall be borne solely by the Secretary of Veterans Affairs.

SEC. 2922. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR A COUNTY 
                    LANDFILL.

    (a) Conveyance Authorized.--Subject to section 2931, the 
Secretary of the Army may convey, without compensation,to Will 
County, Illinois, all right, title, and interest of the United States 
in and to the parcel of real property at the Arsenal described in 
subsection (b), which shall be operated as a landfill by the County.
    (b) Description of Property.--The real property authorized 
to be conveyed under subsection (a) is a parcel of real 
property at the Arsenal consisting of approximately 455 acres, 
the approximate legal description of which includes part of 
sections 8, 9, 16, and 17, Florence Township, Township 33 
North, Range 10 East, Will County, Illinois, as depicted in the 
Arsenal land use concept.
    (c) Condition on Conveyance.--The conveyance shall be 
subject to the condition that the Department of the Army, the 
Department of Veterans Affairs, and the Department of 
Agriculture (or their agents or assigns) may use the landfill 
established on the real property conveyed under subsection (a) 
for the disposal of construction debris, refuse, and other 
materials related to any restoration and cleanup of Arsenal 
property. Such use shall be subject to applicable environmental 
laws and at no cost to the Federal Government.
    (d) Reversionary Interest.--If, at the end of the five-year 
period beginning on the date of the conveyance under subsection 
(a), the Secretary of Agriculture determines that the conveyed 
property is not opened for operation as a landfill, then, at 
the option of the Secretary of Agriculture, all right, title, 
and interest in and to the property, including improvements 
thereon, shall revert to the United States. Upon any such 
reversion, the property shall be included in the Midewin 
National Tallgrass Prairie. In the event the United States 
exercises its option to cause the property to revert, the 
United States shall have the right of immediate entry onto the 
property.
    (e) Information Regarding Environmental Conditions.--At the 
request of the Secretary of Agriculture, Will County, the 
Secretary of the Army, and the Administrator shall provide to 
the Secretary of Agriculture all information in their 
possession at the time of the request regarding the 
environmental condition of the real property to be conveyed 
under this section. The liability and responsibility of any 
person under any environmental law shall remain unchanged with 
respect to the landfill, except as provided in this title, 
including section 2913.
    (f) Surveys.--All costs of necessary surveys for the 
conveyance of real property under this section shall be borne 
by Will County, Illinois.
    (g) Additional Terms and Conditions.--The Secretary of the 
Army may require such additional terms and conditions in 
connection with the conveyance under this section as the 
Secretary of the Army considers appropriate to protect the 
interests of the United States.

SEC. 2923. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR 
                    INDUSTRIAL PARKS.

    (a) Conveyance Authorized.--Subject to section 2931, the 
Secretary of the Army may convey to the State of Illinois, all 
right, title, and interest of the United States in and to the 
parcels of real property at the Arsenal described in subsection 
(b), which shall be used as industrial parks to replace all or 
a part of the economic activity lost at the Arsenal.
    (b) Description of Property.--The real property at the 
Arsenal authorized to be transferred under subsection (a) 
consists of the following parcels:
            (1) A parcel of approximately 1,900 acres, the 
        approximate legal description of which includes part of 
        section 30, Jackson Township, Township 34 North, Range 
        10 East, and sections or parts of sections 24, 25, 26, 
        35, and 36, Township 34 North, Range 9 East, in 
        Channahon Township, an area of 9.77 acres around the 
        Des Plaines River Pump Station located in the southeast 
        quarter of section 15, Township 34 North, Range 9 East 
        of the Third Principal Meridian, in Channahon Township, 
        and an area of 511 feet by 596 feet around the Kankakee 
        River Pump Station in the Northwest Quarter of section 
        5, Township 33 North, Range 9 East, east of the Third 
        Principal Meridian in Wilmington Township, containing 
        6.99 acres, located along the easterly side of the 
        Kankakee Cut-Off in Will County, Illinois, as depicted 
        in the Arsenal land use concept, and the connecting 
        piping to the northern industrial site, as described by 
        the United States Army Report of Availability, dated 13 
        December 1993.
            (2) A parcel of approximately 1,100 acres, the 
        approximate legal description of which includes part of 
        sections 16, 17, and 18 in Florence Township, Township 
        33 North, Range 10 East, Will County, Illinois, as 
        depicted in the Arsenal land use concept.
    (c) Consideration.--
            (1) Delay in payment of consideration.--After the 
        end of the 20-year period beginning on the date on 
        which the conveyance under subsection (a) is completed, 
        the State of Illinois shall pay to the United States an 
        amount equal to fair market value of the conveyed 
        property as of the time of the conveyance.
            (2) Effect of reconveyance by state.--If the State 
        of Illinois reconveys all or any part of the conveyed 
        property during such 20-year period, the State shall 
        pay to the United States an amount equal to the fair 
        market value of the reconveyed property as of the time 
        of the reconveyance, excluding the value of any 
        improvements made to the property by the State.
            (3) Determination of fair market value.--The 
        Secretary of the Army shall determine fair market value 
        in accordance with Federal appraisal standards and 
        procedures.
            (4) Treatment of leases.--The Secretary of the Army 
        may treat a lease of the property within such 20-year 
        period as a reconveyance if the Secretary determines 
        that the lease is being used to avoid application of 
        paragraph (2).
            (5) Deposit of proceeds.--The Secretary of the Army 
        shall deposit any proceeds received under this 
        subsection in the special account established pursuant 
        to section 204(h)(2) of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 
        485(h)(2)).
    (d) Conditions of Conveyance.--
            (1) Redevelopment authority.--The conveyance under 
        subsection (a) shall be subject to the condition that 
        the Governor of the State of Illinois, in consultation 
        with the Mayor of the Village of Elwood, Illinois, and 
        the Mayor of the City of Wilmington, Illinois, 
        establish a redevelopment authority to be responsible 
        for overseeing the development of the industrial parks 
        on the conveyed property.
            (2) Time for establishment.--To satisfy the 
        condition specified in paragraph (1), the redevelopment 
        authority shall be established within one year after 
        the date of the enactment of this title.
    (e) Surveys.--All costs of necessary surveys for the 
conveyance of real property under this section shall be borne 
by the State of Illinois.
    (f) Additional Terms and Conditions.--The Secretary of the 
Army may require such additional terms and conditions in 
connection with the conveyance under this section as the 
Secretary considers appropriate to protect the interests of the 
United States.

                  Subtitle C--Miscellaneous Provisions

SEC. 2931. DEGREE OF ENVIRONMENTAL CLEANUP.

    (a) In General.--Nothing in this title shall be construed 
to restrict or lessen the degree of cleanup at the Arsenal 
required to be carried out under provisions of any 
environmental law.
    (b) Response Action.--The establishment of the Midewin 
National Tallgrass Prairie under subtitle A and the additional 
real property transfers or conveyances authorized under 
subtitle B shall not restrict or lessen in any way any response 
action or degree of cleanup under CERCLA or other environmental 
law, or any action required under any environmental law to 
remediate petroleum products or their derivatives (including 
motor oil and aviation fuel), required to be carried out under 
the authority of the Secretary of the Army at the Arsenal and 
surrounding areas.
    (c) Environmental Quality of Property.--Any contract for 
sale, deed, or other transfer of real property under subtitle B 
shall be carried out in compliance with all applicable 
provisions of section 120(h) of CERCLA and other environmental 
laws.

SEC. 2932. RETENTION OF PROPERTY USED FOR ENVIRONMENTAL CLEANUP.

    (a) Retention of Certain Property.--Unless and until the 
Arsenal property described in this subsection is actually 
transferred or conveyed under this title or other applicable 
law, the Secretary of the Army may retain jurisdiction, 
authority, and control over real property at the Arsenal to be 
used for--
            (1) water treatment;
            (2) the treatment, storage, or disposal of any 
        hazardous substance, pollutant or contaminant, 
        hazardous material, or petroleum products or their 
        derivatives;
            (3) other purposes related to any response action 
        at the Arsenal; and
            (4) other actions required at the Arsenal under any 
        environmental law to remediate contamination or 
        conditions of noncompliance with any environmental law.
    (b) Conditions.--The Secretary of the Army shall consult 
with the Secretary of Agriculture regarding the identification 
and management of the real property retained under this section 
and ensure that activities carried out on that property are 
consistent, to the extent practicable, with the purposes for 
which the Midewin National Tallgrass Prairie is established, as 
specified in section 2914(c), and with the other provisions of 
sections 2914 and 2915.
    (c) Priority of Response Actions.--In the case of any 
conflict between management of the property by the Secretary of 
Agriculture and any response action required under CERCLA, or 
any other action required under any other environmental law, 
including actions to remediate petroleum products or their 
derivatives, the response action or other action shall take 
priority.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

    (a) Stockpile Stewardship.--Subject to subsection (d), 
funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1996 for stockpile 
stewardship in carrying out weapons activities necessary for 
national security programs in the amount of $1,567,175,000, to 
be allocated as follows:
            (1) For core stockpile stewardship, $1,159,708,000, 
        to be allocated as follows:
                    (A) For operation and maintenance, 
                $1,078,403,000.
                    (B) For plant projects (including 
                maintenance, restoration, planning, 
                construction, acquisition, modification of 
                facilities, and the continuation of projects 
                authorized in prior years, and land acquisition 
                related thereto), $81,305,000, to be allocated 
                as follows:
                            Project 96-D-102, stockpile 
                        stewardship facilities revitalization, 
                        Phase VI, various locations, 
                        $2,520,000.
                            Project 96-D-103, ATLAS, Los Alamos 
                        National Laboratory, Los Alamos, New 
                        Mexico, $8,400,000.
                            Project 96-D-104, processing and 
                        environmental technology laboratory 
                        (PETL), Sandia National Laboratories, 
                        Albuquerque, New Mexico, $1,800,000.
                            Project 96-D-105, contained firing 
                        facility addition, Lawrence Livermore 
                        National Laboratory, Livermore, 
                        California, $6,600,000.
                            Project 95-D-102, Chemical and 
                        Metallurgy Research Building upgrades 
                        project, Los Alamos National 
                        Laboratory, Los Alamos, New Mexico, 
                        $9,940,000.
                            Project 94-D-102, nuclear weapons 
                        research, development, and testing 
                        facilities revitalization, Phase V, 
                        various locations, $12,200,000.
                            Project 93-D-102, Nevada support 
                        facility, North Las Vegas, Nevada, 
                        $15,650,000.
                            Project 90-D-102, nuclear weapons 
                        research, development, and testing 
                        facilities revitalization, Phase III, 
                        various locations, $6,200,000.
                            Project 88-D-106, nuclear weapons 
                        research, development, and testing 
                        facilities revitalization, Phase II, 
                        various locations, $17,995,000.
            (2) For inertial fusion, $240,667,000, to be 
        allocated as follows:
                    (A) For operation and maintenance, 
                $203,267,000.
                    (B) For the following plant project 
                (including maintenance, restoration, planning, 
                construction, acquisition, and modification of 
                facilities, and land acquisition related 
                thereto), $37,400,000:
                            Project 96-D-111, national ignition 
                        facility, location to be determined, 
                        $37,400,000.
            (3) For technology transfer and education, 
        $160,000,000.
            (4) For Marshall Islands, $6,800,000.
    (b) Stockpile Management.--Subject to subsection (d), funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1996 for stockpile management in 
carrying out weapons activities necessary for national security 
programs in the amount of $2,025,083,000, to be allocated as 
follows:
            (1) For operation and maintenance, $1,911,458,000.
            (2) For plant projects (including maintenance, 
        restoration, planning, construction, acquisition, 
        modification of facilities, and the continuation of 
        projects authorized in prior years, and land 
        acquisition related thereto), $113,625,000, to be 
        allocated as follows:
                    Project 96-D-122, sewage treatment quality 
                upgrade (STQU), Pantex Plant, Amarillo, Texas, 
                $600,000.
                    Project 96-D-123, retrofit heating, 
                ventilation, and air conditioning and chillers 
                for ozone protection, Y-12 Plant, Oak Ridge, 
                Tennessee, $3,100,000.
                    Project 96-D-125, Washington measurements 
                operations facility, Andrews Air Force Base, 
                Camp Springs, Maryland, $900,000.
                    Project 96-D-126, tritium loading line 
                modifications, Savannah River Site, South 
                Carolina, $12,200,000.
                    Project 95-D-122, sanitary sewer upgrade, 
                Y-12 Plant, Oak Ridge, Tennessee, $6,300,000.
                    Project 94-D-124, hydrogen fluoride supply 
                system, Y-12 Plant, Oak Ridge, Tennessee, 
                $8,700,000.
                    Project 94-D-125, upgrade life safety, 
                Kansas City Plant, Kansas City, Missouri, 
                $5,500,000.
                    Project 94-D-127, emergency notification 
                system, Pantex Plant, Amarillo, Texas, 
                $2,000,000.
                    Project 94-D-128, environmental safety and 
                health analytical laboratory, Pantex Plant, 
                Amarillo, Texas, $4,000,000.
                    Project 93-D-122, life safety upgrades, Y-
                12 Plant, Oak Ridge, Tennessee, $7,200,000.
                    Project 93-D-123, complex-21, various 
                locations, $41,065,000.
                    Project 88-D-122, facilities capability 
                assurance program, various locations, 
                $8,660,000.
                    Project 88-D-123, security enhancement, 
                Pantex Plant, Amarillo, Texas, $13,400,000.
    (c) Program Direction.--Subject to subsection (d), funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1996 for program direction in carrying 
out weapons activities necessary for national security programs 
in the amount of $115,000,000.
    (d) Adjustments.--The total amount authorized to be 
appropriated pursuant to this section is the sum of the amounts 
authorized to be appropriated in subsections (a) through (c) 
reduced by the sum of--
            (1) $37,200,000, for savings resulting from 
        procurement reform; and
            (2) $209,744,000, for use of prior year balances.

SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

    (a) Environmental Restoration.--Subject to subsection (h), 
funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1996 for environmental 
restoration in carrying out environmental restoration and waste 
management activities necessary for national security programs 
in the amount of $1,635,973,000.
    (b) Waste Management.--Subject to subsection (h), funds are 
hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1996 for waste management in carrying 
out environmental restoration and waste management activities 
necessary for national security programs in the amount of 
$2,470,598,000, to be allocated as follows:
            (1) For operation and maintenance, $2,295,994,000.
            (2) For plant projects (including maintenance, 
        restoration, planning, construction, acquisition, 
        modification of facilities, and the continuation of 
        projects authorized in prior years, and land 
        acquisition related thereto), $174,604,000, to be 
        allocated as follows:
                    Project 96-D-406, spent nuclear fuels 
                canister storage and stabilization facility, 
                Richland, Washington, $42,000,000.
                    Project 96-D-407, mixed waste/low-level 
                waste treatment projects, Rocky Flats Plant, 
                Golden, Colorado, $2,900,000.
                    Project 96-D-408, waste management 
                upgrades, various locations, $5,615,000.
                    Project 95-D-402, install permanent 
                electrical service, Waste Isolation Pilot 
                Plant, Carlsbad, New Mexico, $4,314,000.
                    Project 95-D-405, industrial landfill V and 
                construction/demolition landfill VII, Phase 
                III, Y-12 Plant, Oak Ridge, Tennessee, 
                $4,600,000.
                    Project 95-D-406, road 5-01 reconstruction, 
                area 5, Nevada Test Site, Nevada, $1,023,000.
                    Project 95-D-407, 219-S secondary 
                containment upgrade, Richland Washington, 
                $1,000,000.
                    Project 94-D-400, high explosive wastewater 
                treatment system, Los Alamos National 
                Laboratory, Los Alamos, New Mexico, $4,445,000.
                    Project 94-D-402, liquid waste treatment 
                system, Nevada Test Site, Nevada, $282,000.
                    Project 94-D-404, Melton Valley storage 
                tank capacity increase, Oak Ridge National 
                Laboratory, Oak Ridge, Tennessee, $11,000,000.
                    Project 94-D-407, initial tank retrieval 
                systems, Richland, Washington, $12,000,000.
                    Project 94-D-411, solid waste operation 
                complex, Richland, Washington, $6,606,000.
                    Project 93-D-178, building 374 liquid waste 
                treatment facility, Rocky Flats Plant, Golden, 
                Colorado, $3,900,000.
                    Project 93-D-181, radioactive liquid waste 
                line replacement, Richland, Washington, 
                $5,000,000.
                    Project 93-D-182, replacement of cross-site 
                transfer system, Richland, Washington, 
                $19,795,000.
                    Project 93-D-187, high-level waste removal 
                from filled waste tanks, Savannah River Site, 
                South Carolina, $19,700,000.
                    Project 92-D-171, mixed waste receiving and 
                storage facility, Los Alamos National 
                Laboratory, Los Alamos, New Mexico, $1,105,000.
                    Project 92-D-188, waste management 
                environmental, safety and health (ES&H) and 
                compliance activities, various locations, 
                $1,100,000.
                    Project 90-D-172, aging waste transfer 
                lines, Richland, Washington, $2,000,000.
                    Project 90-D-177, RWMC transuranic (TRU) 
                waste characterization and storage facility, 
                Idaho National Engineering Laboratory, Idaho, 
                $1,428,000.
                    Project 90-D-178, TSA retrieval enclosure, 
                Idaho National Engineering Laboratory, Idaho, 
                $2,606,000.
                    Project 89-D-173, tank farm ventilation 
                upgrade, Richland, Washington, $800,000.
                    Project 89-D-174, replacement high-level 
                waste evaporator, Savannah River Site, Aiken, 
                South Carolina, $11,500,000.
                    Project 86-D-103, decontamination and waste 
                treatment facility, Lawrence Livermore National 
                Laboratory, Livermore, California, $8,885,000.
                    Project 83-D-148, nonradioactive hazardous 
                waste management, Savannah River Site, Aiken, 
                South Carolina, $1,000,000.
    (c) Technology Development.--Subject to subsection (h), 
funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1996 for technology 
development in carrying out environmental restoration and waste 
management activities necessary for national security programs 
in the amount of $440,510,000.
    (d) Transportation Management.--Subject to subsection (h), 
funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1996 for transportation 
management in carrying out environmental restoration and waste 
management activities necessary for national security programs 
in the amount of $13,158,000.
    (e) Nuclear Materials and Facilities Stabilization.--
Subject to subsection (h), funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1996 
for nuclear materials and facilities stabilization in carrying 
out environmental restoration and waste management activities 
necessary for national security programs in the amount of 
$1,561,854,000 to be allocated as follows:
            (1) For operation and maintenance, $1,447,108,000.
            (2) For plant projects (including maintenance, 
        restoration, planning, construction, acquisition, 
        modification of facilities, and the continuation of 
        projects authorized in prior years, and land 
        acquisition related thereto), $114,746,000, to be 
        allocated as follows:
                    Project 96-D-457, thermal treatment system, 
                Richland Washington, $1,000,000.
                    Project 96-D-458, site drainage control, 
                Mound Plant, Miamisburg, Ohio, $885,000.
                    Project 96-D-461, electrical distribution 
                upgrade, Idaho National Engineering Laboratory, 
                Idaho, $1,539,000.
                    Project 96-D-464, electrical and utility 
                systems upgrade, Idaho Chemical Processing 
                Plant, Idaho National Engineering Laboratory, 
                Idaho, $4,952,000.
                    Project 96-D-468, residue elimination 
                project, Rocky Flats Plant, Golden, Colorado, 
                $33,100,000.
                    Project 96-D-471, chlorofluorocarbon 
                heating, ventilation, and air conditioning and 
                chiller retrofit, Savannah River Site, Aiken, 
                South Carolina, $1,500,000.
                    Project 95-D-155, upgrade site road 
                infrastructure, Savannah River Site, South 
                Carolina, $2,900,000.
                    Project 95-D-156, radio trunking system, 
                Savannah River Site, South Carolina, 
                $6,000,000.
                    Project 95-D-454, 324 facility compliance/
                renovation, Richland, Washington, $3,500,000.
                    Project 95-D-456, security facilities 
                upgrade, Idaho Chemical Processing Plant, Idaho 
                National Engineering Laboratory, Idaho, 
                $8,382,000.
                    Project 94-D-122, underground storage 
                tanks, Rocky Flats Plant, Golden, Colorado, 
                $5,000,000.
                    Project 94-D-401, emergency response 
                facility, Idaho National Engineering 
                Laboratory, Idaho, $5,074,000.
                    Project 94-D-412, 300 area process sewer 
                piping upgrade, Richland, Washington, 
                $1,000,000.
                    Project 94-D-415, medical facilities, Idaho 
                National Engineering Laboratory, Idaho, 
                $3,601,000.
                    Project 94-D-451, infrastructure 
                replacement, Rocky Flats Plant, Golden, 
                Colorado, $2,940,000.
                    Project 93-D-147, domestic water system 
                upgrade, Phase I and II, Savannah River Site, 
                Aiken, South Carolina, $7,130,000.
                    Project 92-D-123, plant fire/security alarm 
                systems replacement, Rocky Flats Plant, Golden, 
                Colorado, $9,560,000.
                    Project 92-D-125, master safeguards and 
                security agreement/materials surveillance task 
                force security upgrades, Rocky Flats Plant, 
                Golden, Colorado, $7,000,000.
                    Project 92-D-181, fire and life safety 
                improvements, Idaho National Engineering 
                Laboratory, Idaho, $6,883,000.
                    Project 91-D-127, criticality alarm and 
                plant annunciation utility replacement, Rocky 
                Flats Plant, Golden, Colorado, $2,800,000.
    (f) Compliance and Program Coordination.--Subject to 
subsection (h), funds are hereby authorized to be appropriated 
to the Department of Energy for fiscal year 1996 for compliance 
and program coordination in carrying out environmental 
restoration and waste management activities necessary for 
national security programs in the amount of $46,251,000, to be 
allocated as follows:
            (1) For operation and maintenance, $31,251,000.
            (2) For the following plant project (including 
        maintenance, restoration, planning, construction, 
        acquisition, modification of facilities, and the 
        continuation of a project authorized in prior years, 
        and land acquisition related thereto):
                    Project 95-E-600, hazardous materials 
                training center, Richland, Washington, 
                $15,000,000.
    (g) Analysis, Education, and Risk Management.--Subject to 
subsection (h), funds are hereby authorized to be appropriated 
to the Department of Energy for fiscal year 1996 for analysis, 
education, and risk management in carrying out environmental 
restoration and waste management activities necessary for 
national security programs in the amount of $78,522,000.
    (h) Adjustments.--The total amount authorized to be 
appropriated pursuant to this section is the sum of the amounts 
specified in subsections (a) through (g) reduced by the sum 
of--
            (1) $652,334,000, for use of prior year balances; 
        and
            (2) $37,000,000, for Savannah River Pension Refund.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    (a) Other Defense Activities.--Subject to subsection (b), 
funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1996 for other defense 
activities in carrying out programs necessary for national 
security in the amount of $1,351,975,600, to be allocated as 
follows:
            (1) For verification and control technology, 
        $428,205,600, to be allocated as follows:
                    (A) For nonproliferation and verification 
                research and development, $224,905,000.
                    (B) For arms control, $160,964,600.
                    (C) For intelligence, $42,336,000.
            (2) For nuclear safeguards and security, 
        $83,395,000.
            (3) For security investigations, $20,000,000.
            (4) For security evaluations, $14,707,000.
            (5) For the Office of Nuclear Safety, $17,679,000.
            (6) For worker and community transition assistance, 
        $82,500,000.
            (7) For fissile materials disposition, $70,000,000.
            (8) For emergency management, $23,321,000.
            (9) For naval reactors development, $682,168,000, 
        to be allocated as follows:
                    (A) For operation and infrastructure, 
                $652,568,000.
                    (B) For plant projects (including 
                maintenance, restoration, planning, 
                construction, acquisition, modification of 
                facilities, and the continuation of projects 
                authorized in prior years, and land acquisition 
                related thereto), $29,600,000, to be allocated 
                as follows:
                            Project GPN-101, general plant 
                        projects, various locations, 
                        $6,600,000.
                            Project 95-D-200, laboratory 
                        systems and hot cell upgrades, various 
                        locations, $11,300,000.
                            Project 95-D-201, advanced test 
                        reactor radioactive waste system 
                        upgrades, Idaho National Engineering 
                        Laboratory, Idaho, $4,800,000.
                            Project 93-D-200, engineering 
                        services facilities, Knolls Atomic 
                        Power Laboratory, Niskayuna, New York, 
                        $3,900,000.
                            Project 90-N-102, expended core 
                        facility dry cell project, Naval 
                        Reactors Facility, Idaho, $3,000,000.
    (b) Adjustment.--The total amount authorized to be 
appropriated pursuant to this section is the amount authorized 
to be appropriated in subsection (a) reduced by $70,000,000, 
for use of prior year balances.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1996 for payment to the 
Nuclear Waste Fund established in section 302(c) of the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of 
$248,400,000.

                Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

    (a) In General.--Until the Secretary of Energy submits to 
the congressional defense committees the report referred to in 
subsection (b) and a period of 30 days has elapsed after the 
date on which such committees receive the report, the Secretary 
may not use amounts appropriated pursuant to this title for any 
program--
            (1) in amounts that exceed, in a fiscal year--
                    (A) 110 percent of the amount authorized 
                for that program by this title; or
                    (B) $1,000,000 more than the amount 
                authorized for that program by this title; or
            (2) which has not been presented to, or requested 
        of, Congress.
    (b) Report.--(1) The report referred to in subsection (a) 
is a report containing a full and complete statement of the 
action proposed to be taken and the facts and circumstances 
relied upon in support of such proposed action.
    (2) In the computation of the 30-day period under 
subsection (a), there shall be excluded any day on which either 
House of Congress is not in session because of an adjournment 
of more than 3 days to a day certain.
    (c) Limitations.--(1) In no event may the total amount of 
funds obligated pursuant to this title exceed the total amount 
authorized to be appropriated by this title.
    (2) Funds appropriated pursuant to this title may not be 
used for an item for which Congress has specifically denied 
funds.

SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

    (a) In General.--The Secretary of Energy may carry out any 
construction project under the general plant projects 
authorized by this title if the total estimated cost of the 
construction project does not exceed $2,000,000.
    (b) Report to Congress.--If, at any time during the 
construction of any general plant project authorized by this 
title, the estimated cost of the project is revised because of 
unforeseen cost variations and the revised cost of the project 
exceeds $2,000,000, the Secretary shall immediately furnish a 
complete report to the congressional defense committees 
explaining the reasons for the cost variation.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

    (a) In General.--(1) Except as provided in paragraph (2), 
construction on a construction project may not be started or 
additional obligations incurred in connection with the project 
above the total estimated cost, whenever the current estimated 
cost of the construction project, which is authorized by 
sections 3101, 3102, or 3103, or which is in support of 
national security programs of the Department of Energy and was 
authorized by any previous Act, exceeds by more than 25 percent 
the higher of--
            (A) the amount authorized for the project; or
            (B) the amount of the total estimated cost for the 
        project as shown in the most recent budget 
        justification data submitted to Congress.
    (2) An action described in paragraph (1) may be taken if--
            (A) the Secretary of Energy has submitted to the 
        congressional defense committees a report on the 
        actions and the circumstances making such action 
        necessary; and
            (B) a period of 30 days has elapsed after the date 
        on which the report is received by the committees.
    (3) In the computation of the 30-day period under paragraph 
(2), there shall be excluded any day on which either House of 
Congress is not in session because of an adjournment of more 
than 3 days to a day certain.
    (b) Exception.--Subsection (a) shall not apply to any 
construction project which has a current estimated cost of less 
than $5,000,000.

SEC. 3124. FUND TRANSFER AUTHORITY.

    (a) Transfer to Other Federal Agencies.--The Secretary of 
Energy may transfer funds authorized to be appropriated to the 
Department of Energy pursuant to this title to other Federal 
agencies for the performance of work for which the funds were 
authorized. Funds so transferred may be merged with and be 
available for the same purposes and for the same period as the 
authorizations of the Federal agency to which the amounts are 
transferred.
    (b) Transfer Within Department of Energy; Limitations.--(1) 
Subject to paragraph (2), the Secretary of Energy may transfer 
funds authorized to be appropriated to the Department of Energy 
pursuant to this title between any such authorizations. Amounts 
of authorizations so transferred may be merged with and be 
available for the same purposes and for the same period as the 
authorization to which the amounts are transferred.
    (2) Not more than five percent of any such authorization 
may be transferred between authorizations under paragraph (1). 
No such authorization may be increased or decreased by more 
than five percent by a transfer under such paragraph.
    (3) The authority provided by this section to transfer 
authorizations--
            (A) may only be used to provide funds for items 
        relating to weapons activities necessary for national 
        security programs that have a higher priority than the 
        items from which the funds are transferred; and
            (B) may not be used to provide authority for an 
        item that has been denied funds by Congress.
    (c) Notice to Congress.--The Secretary of Energy shall 
promptly notify the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives of any transfer of funds to or from 
authorizations under this title.

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

    (a) Requirement for Conceptual Design.--(1) Subject to 
paragraph (2) and except as provided in paragraph (3), before 
submitting to Congress a request for funds for a construction 
project that is in support of a national security program of 
the Department of Energy, the Secretary of Energy shall 
complete a conceptual design for that project.
    (2) If the estimated cost of completing a conceptual design 
for a construction project exceeds $3,000,000, the Secretary 
shall submit to Congress a request for funds for the conceptual 
design before submitting a request for funds for the 
construction project.
    (3) The requirement in paragraph (1) does not apply to a 
request for funds--
            (A) for a construction project the total estimated 
        cost of which is less than $2,000,000; or
            (B) for emergency planning, design, and 
        construction activities under section 3126.
    (b) Authority for Construction Design.--(1) Within the 
amounts authorized by this title, the Secretary of Energy may 
carry out construction design (including architectural and 
engineering services) in connection with any proposed 
construction project if the total estimated cost for such 
design does not exceed $600,000.
    (2) If the total estimated cost for construction design in 
connection with any construction project exceeds $600,000, 
funds for such design must be specifically authorized by law.

SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION 
                    ACTIVITIES.

    (a) Authority.--The Secretary of Energy may use any funds 
available to the Department of Energy pursuant to an 
authorization in this title, including those funds authorized 
to be appropriated for advance planning and construction design 
under sections 3101, 3102, and 3103, to perform planning, 
design, and construction activities for any Department of 
Energy national security program construction project that, as 
determined by the Secretary, must proceed expeditiously in 
order to protect public health and safety, to meet the needs of 
national defense, or to protect property.
    (b) Limitation.--The Secretary may not exercise the 
authority under subsection (a) in the case of any construction 
project until the Secretary has submitted to the congressional 
defense committees a report on the activities that the 
Secretary intends to carry out under this section and the 
circumstances making such activities necessary.
    (c) Specific Authority.--The requirement of section 
3125(b)(2) does not apply to emergency planning, design, and 
construction activities conducted under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE 
                    DEPARTMENT OF ENERGY.

    Subject to the provisions of appropriations Acts and 
section 3121, amounts appropriated pursuant to this title for 
management and support activities and for general plant 
projects are available for use, when necessary, in connection 
with all national security programs of the Department of 
Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

    When so specified in an appropriation Act, amounts 
appropriated for operation and maintenance or for plant 
projects may remain available until expended.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. AUTHORITY TO CONDUCT PROGRAM RELATING TO FISSILE MATERIALS.

    (a) Authority.--The Secretary of Energy may conduct 
programs designed to improve the protection, control, and 
accountability of fissile materials in Russia.
    (b) Semi-Annual Reports on Obligation of Funds.--(1) Not 
later than 30 days after the date of the enactment of this Act, 
and thereafter not later than April 1 and October 1 of each 
year, the Secretary of Energy shall submit to Congress a report 
on each obligation during the precedingsix months of funds 
appropriated for a program described in subsection (a).
    (2) Each such report shall specify--
            (A) the activities and forms of assistance for 
        which the Secretary of Energy has obligated funds;
            (B) the amount of the obligation;
            (C) the activities and forms of assistance for 
        which the Secretary anticipates obligating funds during 
        the six months immediately following the report, and 
        the amount of each such anticipated obligation; and
            (D) the projected involvement (if any) of any 
        department or agency of the United States (in addition 
        to the Department of Energy) and of the private sector 
        of the United States in the activities and forms of 
        assistance for which the Secretary of Energy has 
        obligated funds referred to in subparagraph (A).

SEC. 3132. NATIONAL IGNITION FACILITY.

    None of the funds authorized to be appropriated pursuant to 
this title for construction of the National Ignition Facility 
may be obligated until--
            (1) the Secretary of Energy determines that the 
        construction of the National Ignition Facility will not 
        impede the nuclear nonproliferation objectives of the 
        United States; and
            (2) the Secretary of Energy notifies the 
        congressional defense committees of that determination.

SEC. 3133. TRITIUM PRODUCTION PROGRAM.

    (a) Establishment of Program.--The Secretary of Energy 
shall establish a tritium production program that is capable of 
meeting the tritium requirements of the United States for 
nuclear weapons. In carrying out the tritium production 
program, the Secretary shall--
            (1) complete the tritium supply and recycling 
        environmental impact statement in preparation by the 
        Secretary as of the date of the enactment of this Act; 
        and
            (2) assess alternative means for tritium 
        production, including production through--
                    (A) types of new and existing reactors, 
                including multipurpose reactors (such as 
                advanced light water reactors and gas turbine 
                gas-cooled reactors) capable of meeting both 
                the tritium production requirements and the 
                plutonium disposition requirements of the 
                United States for nuclear weapons;
                    (B) an accelerator; and
                    (C) multipurpose reactor projects carried 
                out by the private sector and the Government.
    (b) Funding.--Of funds authorized to be appropriated to the 
Department of Energy pursuant to section 3101, not more than 
$50,000,000 shall be available for the tritium production 
program established pursuant to subsection (a).
    (c) Location of Tritium Production Facility.--The Secretary 
shall locate any new tritium production facility of the 
Department of Energy at the Savannah River Site, South 
Carolina.
    (d) Cost-Benefit Analysis.--(1) The Secretary shall include 
in the statements referred to in paragraph (2) a comparison of 
the costs and benefits of carrying out two projects for the 
separate performance of the tritium production mission of the 
Department and the plutonium disposition mission of the 
Department with the costs and benefits of carrying out one 
multipurpose project for the performance of both such missions.
    (2) The statements referred to in paragraph (1) are--
            (A) the environmental impact statement referred to 
        in subsection (a)(1);
            (B) the plutonium disposition environmental impact 
        statement in preparation by the Secretary as of the 
        date of the enactment of this Act; and
            (C) assessments related to the environmental impact 
        statements referred to in subparagraphs (A) and (B).
    (e) Report.--Not later than 45 days after the date of the 
enactment of this Act, the Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report on 
the tritium production program established pursuant to 
subsection (a). The report shall include a specification of--
            (1) the planned expenditures of the Department 
        during fiscal year 1996 for any of the alternative 
        means for tritium production assessed under subsection 
        (a)(2);
            (2) the amount of funds required to be expended by 
        the Department, and the program milestones (including 
        feasibility demonstrations) required to be met, during 
        fiscal years 1997 through 2001 to ensure tritium 
        production beginning not later than 2005 that is 
        adequate to meet the tritium requirements of the United 
        States for nuclear weapons; and
            (3) the amount of such funds to be expended and 
        such program milestones to be met during such fiscal 
        years to ensure such tritium production beginning not 
        later than 2011.
    (f) Tritium Targets.--Of the funds made available pursuant 
to subsection (b), not more than $5,000,000 shall be available 
for the Idaho National Engineering Laboratory for the test and 
development of nuclear reactor tritium targets for the types of 
reactors assessed under subsection (a)(2)(A).

SEC. 3134. PAYMENT OF PENALTIES.

    The Secretary of Energy may pay to the Hazardous Substance 
Superfund established under section 9507 of the Internal 
Revenue Code of 1986 (26 U.S.C. 9507), from funds appropriated 
to the Department of Energy for environmental restoration and 
waste management activities pursuant to section 3102, 
stipulated civil penalties in the amount of $350,000 assessed 
under the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (42 U.S.C. 9601 et seq.) against the 
Rocky Flats Site, Colorado.

SEC. 3135. FISSILE MATERIALS DISPOSITION.

    (a) In General.--Of the funds authorized to be appropriated 
to the Department of Energy for fiscal year 1996 pursuant to 
section 3103, $70,000,000 shall be available only for purposes 
of completing the evaluation of, and commencing implementation 
of, the interim- and long-term storage and disposition 
(including storage and disposition through the use of advanced 
light water reactors and gas turbine gas-cooled reactors) of 
fissile materials (including plutonium, highly enriched 
uranium, and other fissile materials) that are excess to the 
national security needs of the United States.
    (b) Availability of Funds for Multipurpose Reactors.--Of 
funds made available pursuant to subsection (a), sufficient 
funds shall be made available for the complete consideration of 
multipurpose reactors for the disposition of fissile materials 
in the programmatic environmental impact statement of the 
Department.
    (c) Limitation.--Of funds made available pursuant to 
subsection (a), $10,000,000 shall be available only for a 
plutonium resource assessment.

SEC. 3136. TRITIUM RECYCLING.

    (a) In General.--Except as provided in subsection (b), the 
following activities shall be carried out at the Savannah River 
Site, South Carolina:
            (1) All tritium recycling for weapons, including 
        tritium refitting.
            (2) All activities regarding tritium formerly 
        carried out at the Mound Plant, Ohio.
    (b) Exception.--The following activities may be carried out 
at the Los Alamos National Laboratory, New Mexico:
            (1) Research on tritium.
            (2) Work on tritium in support of the defense 
        inertial confinement fusion program.
            (3) Provision of technical assistance to the 
        Savannah River Site regarding the weapons surveillance 
        program.

SEC. 3137. MANUFACTURING INFRASTRUCTURE FOR REFABRICATION AND 
                    CERTIFICATION OF NUCLEAR WEAPONS STOCKPILE.

    (a) Manufacturing Program.--The Secretary of Energy shall 
carry out a program for purposes of establishing within the 
Government a manufacturing infrastructure that has the 
capabilities of meeting the following objectives as specified 
in the Nuclear Posture Review:
            (1) To provide a stockpile surveillance engineering 
        base.
            (2) To refabricate and certify weapon components 
        and types in the enduring nuclear weapons stockpile, as 
        necessary.
            (3) To fabricate and certify new nuclear warheads, 
        as necessary.
            (4) To support nuclear weapons.
            (5) To supply sufficient tritium in support of 
        nuclear weapons to ensure an upload hedge in the event 
        circumstances require.
    (b) Required Capabilities.--The manufacturing 
infrastructure established under the program under subsection 
(a) shall include the following capabilities (modernized to 
attain the objectives referred to in that subsection):
            (1) The weapons assembly capabilities of the Pantex 
        Plant.
            (2) The weapon secondary fabrication capabilities 
        of the Y-12 Plant, Oak Ridge, Tennessee.
            (3) The tritium production, recycling, and other 
        weapons-related capabilities of the Savannah River 
        Site.
            (4) The non-nuclear component capabilities of the 
        Kansas City Plant.
    (c) Nuclear Posture Review.--For purposes of subsection 
(a), the term ``Nuclear Posture Review'' means the Department 
of Defense Nuclear Posture Review as contained in the Report of 
the Secretary of Defense to the President and the Congress 
dated February 19, 1995, or subsequent such reports.
    (d) Funding.--Of the funds authorized to be appropriated 
under section 3101(b), $143,000,000 shall be available for 
carrying out the program required under this section, of 
which--
            (1) $35,000,000 shall be available for activities 
        at the Pantex Plant;
            (2) $30,000,000 shall be available for activities 
        at the Y-12 Plant, Oak Ridge, Tennessee;
            (3) $35,000,000 shall be available for activities 
        at the Savannah River Site; and
            (4) $43,000,000 shall be available for activities 
        at the Kansas City Plant.
    (e) Plan and Report.--The Secretary shall develop a plan 
for the implementation of this section. Not later than March 1, 
1996, the Secretary shall submit to Congress a report on the 
obligations the Secretary has incurred, and plans to incur, 
during fiscal year 1996 for the program referred to in 
subsection (a).

SEC. 3138. HYDRONUCLEAR EXPERIMENTS.

    Of the funds authorized to be appropriated to the 
Department of Energy pursuant to section 3101, $30,000,000 
shall be available to prepare for the commencement of a program 
of hydronuclear experiments at the nuclear weapons design 
laboratories at the Nevada Test Site, Nevada. The purpose of 
the program shall be to maintain confidence in the reliability 
and safety of the nuclear weapons stockpile.

SEC. 3139. LIMITATION ON AUTHORITY TO CONDUCT HYDRONUCLEAR TESTS.

    Nothing in this Act may be construed to authorize the 
conduct of hydronuclear tests or to amend or repeal the 
requirements of section 507 of the Energy and Water Development 
Appropriations Act, 1993 (Public Law 102-377; 106 Stat. 1343; 
42 U.S.C. 2121 note).

SEC. 3140. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS CRITICAL TO THE 
                    DEPARTMENT OF ENERGY NUCLEAR WEAPONS COMPLEX.

    (a) In General.--The Secretary of Energy shall conduct a 
fellowship program for the development of skills critical to 
the ongoing mission of the Department of Energy nuclear weapons 
complex. Under the fellowship program, the Secretary shall--
            (1) provide educational assistance and research 
        assistance to eligible individuals to facilitate the 
        development by such individuals of skills critical to 
        maintaining the ongoing mission of the Department of 
        Energy nuclear weapons complex;
            (2) employ eligible individuals at the facilities 
        described in subsection (c) in order to facilitate the 
        development of such skills by these individuals; or
            (3) provide eligible individuals with the 
        assistance and the employment.
    (b) Eligible Individuals.--Individuals eligible for 
participation in the fellowship program are the following:
            (1) Students pursuing graduate degrees in fields of 
        science or engineering that are related to nuclear 
        weapons engineering or to the science and technology 
        base of the Department of Energy.
            (2) Individuals engaged in postdoctoral studies in 
        such fields.
    (c) Covered Facilities.--The Secretary shall carry out the 
fellowship program at or in connection with the following 
facilities:
            (1) The Kansas City Plant, Kansas City, Missouri.
            (2) The Pantex Plant, Amarillo, Texas.
            (3) The Y-12 Plant, Oak Ridge, Tennessee.
            (4) The Savannah River Site, Aiken, South Carolina.
    (d) Administration.--The Secretary shall carry out the 
fellowship program at a facility referred to in subsection (c) 
through the stockpile manager of the facility.
    (e) Allocation of Funds.--The Secretary shall, in 
consultation with the Assistant Secretary of Energy for Defense 
Programs, allocate funds available for the fellowship program 
under subsection (f) among the facilities referred to in 
subsection (c). The Secretary shall make the allocation after 
evaluating an assessment by the weapons program director of 
each such facility of the personnel and critical skills 
necessary at the facility for carrying out the ongoing mission 
of the facility.
    (f) Funding.--Of the funds authorized to be appropriated to 
the Department of Energy for fiscal year 1996 under section 
3101(b), $10,000,000 may be used for the purpose of carrying 
out the fellowship program under this section.

SEC. 3141. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH AND 
                    DEVELOPMENT PURPOSES.

    Funds appropriated or otherwise made available to the 
Department of Energy for fiscal year 1996 under section 3101 
may be obligated and expended for activities under the 
Department of Energy Laboratory Directed Research and 
Development Program or under Department of Energy technology 
transfer programs only if such activities support the national 
security mission of the Department.

SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR WASTE AND 
                    SPENT NUCLEAR FUEL RODS.

    (a) Processing of Spent Nuclear Fuel Rods.--Of the amounts 
appropriated pursuant to section 3102, there shall be available 
to the Secretary of Energy to respond effectively to new 
requirements for managing spent nuclear fuel--
            (1) not more than $30,000,000, for the Savannah 
        River Site for the development and implementation of a 
        program for the processing, reprocessing, separation, 
        reduction, isolation, and interim storage of high-level 
        nuclear waste associated with aluminum clad spent fuel 
        rods and foreign spent fuel rods; and
            (2) not more than $15,000,000, for the Idaho 
        National Engineering Laboratory for the development and 
        implementation of a program for the treatment, 
        preparation, and conditioning of high-level nuclear 
        waste and spent nuclear fuel (including naval spent 
        nuclear fuel), nonaluminum clad fuel rods, and foreign 
        fuel rods for interim storage and final disposition.
    (b) Implementation Plan.--Not later than April 30, 1996, 
the Secretary shall submit to Congress a five-year plan for the 
implementation of the programs referred to in subsection (a). 
The plan shall include--
            (1) an assessment of the facilities required to be 
        constructed or upgraded to carry out the processing, 
        separation, reduction, isolation and interim storage of 
        high-level nuclear waste;
            (2) a description of the technologies, including 
        stabilization technologies, that are required to be 
        developed for the efficient conduct of the programs;
            (3) a projection of the dates upon which activities 
        under the programs are sufficiently completed to 
        provide for the transfers of such waste to permanent 
        repositories; and
            (4) a projection of the total cost to complete the 
        programs.
    (c) Electrometallurgical Waste Treatment Technologies.--Of 
the amount appropriated pursuant to section 3102(c), not more 
than $25,000,000 shall be available for development of 
electrometallurgical waste treatment technologies at the 
Argonne National Laboratory.
    (d) Use of Funds for Settlement Agreement.--Funds made 
available pursuant to subsection (a)(2) for the Idaho National 
Engineering Laboratory shall be considered to be funds made 
available in partial fulfillment of the terms and obligations 
set forth in the settlement agreement entered into by the 
United States with the State of Idaho in the actions captioned 
Public Service Co. of Colorado v. Batt, Civil No. 91-0035-S-
EJL, and United States v. Batt, Civil No. 91-0054-S-EJL, in the 
United States District Court for the District of Idaho and the 
consent order of the United States District Court for the 
District of Idaho, dated October 17, 1995, that effectuates the 
settlement agreement.

SEC. 3143. PROTECTION OF WORKERS AT NUCLEAR WEAPONS FACILITIES.

    Of the funds authorized to be appropriated to the 
Department of Energy under section 3102, $10,000,000 shall be 
available to carry out activities authorized under section 3131 
of the National Defense Authorization Act for Fiscal Years 1992 
and 1993 (Public Law 102-190; 105 Stat. 1571; 42 U.S.C. 7274d), 
relating to worker protection at nuclear weapons facilities.

SEC. 3144. DEPARTMENT OF ENERGY DECLASSIFICATION PRODUC- TIVITY 
                    INITIATIVE.

    Of the funds authorized to be appropriated to the 
Department of Energy under section 3103, $3,000,000 shall be 
available for the Declassification Productivity Initiative of 
the Department of Energy.

                       Subtitle D--Other Matters

SEC. 3151. REPORT ON FOREIGN TRITIUM PURCHASES.

    (a) Report.--Not later than May 1, 1996, the President 
shall submit to the congressional defense committees a report 
on the feasibility of, the cost of, and the policy, legal, and 
other issues associated with purchasing tritium from various 
foreign suppliers in order to ensure an adequate supply of 
tritium in the United States for nuclear weapons.
    (b) Form of Report.--The report shall be submitted in 
unclassified form, but may contain a classified appendix.

SEC. 3152. STUDY ON NUCLEAR TEST READINESS POSTURES.

    Not later than February 15, 1996, the Secretary of Energy 
shall submit to Congress a report on the costs, programmatic 
issues, and other issues associated with sustaining the 
capability of the Department of Energy--
            (1) to conduct an underground nuclear test 6 months 
        after the date on which the President determines that 
        such a test is necessary to ensure the national 
        security of the United States;
            (2) to conduct such a test 18 months after such 
        date; and
            (3) to conduct such a test 36 months after such 
        date.

SEC. 3153. MASTER PLAN FOR THE CERTIFICATION, STEWARDSHIP, AND 
                    MANAGEMENT OF WARHEADS IN THE NUCLEAR WEAPONS 
                    STOCKPILE.

    (a) Master Plan Requirement.--Not later than March 15, 
1996, the President shall submit to Congress a master plan for 
maintaining the nuclear weapons stockpile. The President shall 
submit to Congress an update of the master plan not later than 
March 15 of each year thereafter.
    (b) Plan Elements.--The master plan and each update of the 
master plan shall set forth the following:
            (1) The numbers of weapons (including active and 
        inactive weapons) for each type of weapon in the 
        nuclear weapons stockpile.
            (2) The expected design lifetime of each weapon 
        type, the current age of each weapon type, and any 
        plans (including the analytical basis for such plans) 
        for lifetime extensions of a weapon type.
            (3) An estimate of the lifetime of the nuclear and 
        nonnuclear components of the weapons (including active 
        weapons and inactive weapons) in the nuclear weapons 
        stockpile, and any plans (including the analytical 
        basis for such plans) for lifetime extensions of such 
        components.
            (4) A schedule of the modifications, if any, 
        required for each weapon type (including active and 
        inactive weapons) in the nuclear weapons stockpile and 
        the cost of such modifications.
            (5) The process to be used in recertifying the 
        safety, reliability, and performance of each weapon 
        type (including active weapons and inactive weapons) in 
        the nuclear weapons stockpile.
            (6) The manufacturing infrastructure required to 
        maintain the nuclear weapons stockpile stewardship and 
        management programs, including a detailed project plan 
        that demonstrates the manner by which the Government 
        will develop by 2002 the capability to refabricate and 
        certify warheads in the nuclear weapons stockpile and 
        to design, fabricate, and certify new warheads.
    (c) Form of Plan.--The master plan and each update of the 
master plan shall be submitted in unclassified form, but may 
contain a classified appendix.

SEC. 3154. PROHIBITION ON INTERNATIONAL INSPECTIONS OF DEPARTMENT OF 
                    ENERGY FACILITIES UNLESS PROTECTION OF RESTRICTED 
                    DATA IS CERTIFIED.

    (a) Prohibition on Inspections.--(1) The Secretary of 
Energy may not allow an inspection of a nuclear weapons 
facility by the International Atomic Energy Agency until the 
Secretary certifies to Congress that no restricted data will be 
revealed during such inspection.
    (2) For purposes of paragraph (1), the term ``restricted 
data'' has the meaning provided by section 11 y. of the Atomic 
Energy Act of 1954 (42 U.S.C. 2014(y)).
    (b) Extension of Notice-and-Wait Requirement Regarding 
Proposed Cooperation Agreements.--Section 3155(b) of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 3092) is amended by striking out 
``December 31, 1995'' and inserting in lieu thereof ``October 
1, 1996''.

SEC. 3155. REVIEW OF CERTAIN DOCUMENTS BEFORE DECLASSIFICATION AND 
                    RELEASE.

    (a) In General.--The Secretary of Energy shall ensure that, 
before a document of the Department of Energy that contains 
national security information is released or declassified, such 
document is reviewed to determine whether it contains 
restricted data.
    (b) Limitation on Declassification.--The Secretary may not 
implement the automatic declassification provisions of 
Executive Order 12958 if the Secretary determines that such 
implementation could result in the automatic declassification 
and release of documents containing restricted data.
    (c) Restricted Data Defined.--In this section, the term 
``restricted data'' has the meaning provided by section 11 y. 
of the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).

SEC. 3156. ACCELERATED SCHEDULE FOR ENVIRONMENTAL RESTORATION AND WASTE 
                    MANAGEMENT ACTIVITIES.

    (a) Accelerated Cleanup.--The Secretary of Energy shall 
accelerate the schedule for environmental restoration and waste 
management activities and projects for a site at a Department 
of Energy defense nuclear facility if the Secretary determines 
that such an accelerated schedule will achieve meaningful, 
long-term cost savings to the Federal Government and could 
substantially accelerate the release of land for local reuse.
    (b) Consideration of Factors.--In making a determination 
under subsection (a), the Secretary shall consider the 
following:
            (1) The cost savings achievable by the Federal 
        Government.
            (2) The amount of time for completion of 
        environmental restoration and waste management 
        activities and projects at the site that can be reduced 
        from the time specified for completion of such 
        activities and projects in the baseline environmental 
        management report required to be submitted for 1995 
        under section 3153 of the National Defense 
        Authorization Act for Fiscal Year 1994 (42 U.S.C. 
        7274k).
            (3) The potential for reuse of the site.
            (4) The risks that the site poses to local health 
        and safety.
            (5) The proximity of the site to populated areas.
    (c) Report.--Not later than May 1, 1996, the Secretary 
shall submit to Congress a report on each site for which the 
Secretary has accelerated the schedule for environmental 
restoration and waste management activities and projects under 
subsection (a). The report shall include an explanation of the 
basis for the determination for that site required by such 
subsection, including an explanation of the consideration of 
the factors described in subsection (b).
    (d) Savings Provision.--Nothing in this section may be 
construed to affect a specific statutory requirement for a 
specific environmental restoration or waste management activity 
or project or to modify or otherwise affect applicable 
statutory or regulatory environmental restoration and waste 
management requirements, including substantive standards 
intended to protect public health and the environment.

SEC. 3157. SENSE OF CONGRESS REGARDING CERTAIN ENVIRONMENTAL 
                    RESTORATION REQUIREMENTS.

    It is the sense of Congress that--
            (1) an individual acting within the scope of that 
        individual's employment with a Federal agency should 
        not be personally subject to civil or criminal 
        sanctions (to the extent such sanctions are provided 
        for by law) as a result of the failure to comply with 
        an environmental cleanup requirement under the Solid 
        Waste Disposal Act or the Comprehensive Environmental 
        Response, Compensation, and Liability Act or an 
        analogous requirement under a comparable Federal, 
        State, or local law, in any circumstance under which 
        such failure to comply is due to an insufficiency of 
        funds appropriated to carry out such requirement;
            (2) Federal and State enforcement authorities 
        should refrain from an enforcement action in a 
        circumstance described in paragraph (1); and
            (3) if funds appropriated for a fiscal year after 
        fiscal year 1995 are insufficient to carry out any such 
        environmental cleanup requirement, Congress should 
        elicit the views of Federal agencies, affected States, 
        and the public, and consider appropriate legislative 
        action to address personal criminal liability in a 
        circumstance described in paragraph (1) and any related 
        issues pertaining to potential liability of a Federal 
        agency.

SEC. 3158. RESPONSIBILITY FOR DEFENSE PROGRAMS EMERGENCY RESPONSE 
                    PROGRAM.

    The Office of Military Applications under the Assistant 
Secretary of Energy for Defense Programs shall retain 
responsibility for the Defense Programs Emergency Response 
Program within the Department of Energy.

SEC. 3159. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS ACTIVITIES 
                    BUDGETS FOR FISCAL YEARS AFTER FISCAL YEAR 1996.

    (a) In General.--The weapons activities budget of the 
Department of Energy shall be developed in accordance with the 
Nuclear Posture Review, the Post Nuclear Posture Review 
Stockpile Memorandum currently under development, and the 
programmatic and technical requirements associated with the 
review and memorandum.
    (b) Required Detail.--The Secretary of Energy shall include 
in the materials that the Secretary submits to Congress in 
support of the budget for a fiscal year submitted by the 
President pursuant to section 1105 of title 31, United States 
Code, a long-term program plan, and a near-term program plan, 
for the certification and stewardship of the nuclear weapons 
stockpile.
    (c) Definition.--In this section, the term ``Nuclear 
Posture Review'' means the Department of Defense Nuclear 
Posture Review as contained in the report of the Secretary of 
Defense to the President and the Congress dated February 19, 
1995, or in subsequent such reports.

SEC. 3160. REPORT ON HYDRONUCLEAR TESTING.

    (a) Report.--The Secretary of Energy shall direct the joint 
preparation by the Directors of the Lawrence Livermore National 
Laboratory and the Los Alamos National Laboratory of a report 
on the advantages and disadvantages with respect to the safety 
and reliability of the nuclear weapons stockpile of permitting 
alternative limits to the current limit on the explosive yield 
of hydronuclear and other explosive tests. The report shall 
address the following explosive yield limits:
            (1) 4 pounds (TNT equivalent).
            (2) 400 pounds (TNT equivalent).
            (3) 4,000 pounds (TNT equivalent).
            (4) 40,000 pounds (TNT equivalent).
            (5) 400 tons (TNT equivalent).
    (b) Funding.--The Secretary shall make available funds 
appropriated to the Department of Energy pursuant to section 
3101 for preparation of the report required under subsection 
(a).

SEC. 3161. APPLICABILITY OF ATOMIC ENERGY COMMUNITY ACT OF 1955 TO LOS 
                    ALAMOS, NEW MEXICO.

    (a) Date of Transfer of Utilities.--Section 72 of the 
Atomic Energy Community Act of 1955 (42 U.S.C. 2372) is amended 
by striking out ``not later than five years after the date it 
is included within this Act'' and inserting in lieu thereof 
``not later than June 30, 1998''.
    (b) Date of Transfer of Municipal Installations.--Section 
83 of such Act (42 U.S.C. 2383) is amended by striking out 
``not later than five years after the date it is included 
within this Act'' and inserting in lieu thereof ``not later 
than June 30, 1998''.
    (c) Recommendation for Further Assistance Payments.--
Section 91d. of such Act (42 U.S.C. 2391) is amended--
            (1) by striking out ``, and the Los Alamos School 
        Board;'' and all that follows through ``county of Los 
        Alamos, New Mexico'' and inserting in lieu thereof ``; 
        or not later than June 30, 1996, in the case of the Los 
        Alamos School Board and the county of Los Alamos, New 
        Mexico''; and
            (2) by adding at the end the following new 
        sentence: ``If the recommendation under the preceding 
        sentence regarding the Los Alamos School Board or the 
        county of Los Alamos, New Mexico, indicates a need for 
        further assistance for the school board or the county, 
        as the case may be, after June 30, 1997, the 
        recommendation shall include a report and plan 
        describing the actions required to eliminate the need 
        for further assistance for the school board or the 
        county, including a proposal for legislative action to 
        carry out the plan.''.
    (d) Contract To Make Payments.--Section 94 of such Act (42 
U.S.C. 2394) is amended--
            (1) by striking out ``June 30, 1996'' each place it 
        appears in the proviso in the first sentence and 
        inserting in lieu thereof ``June 30, 1997''; and
            (2) by striking out ``July 1, 1996'' in the second 
        sentence and inserting in lieu thereof ``July 1, 
        1997''.

SEC. 3162. SENSE OF CONGRESS REGARDING SHIPMENTS OF SPENT NUCLEAR FUEL.

    (a) Findings.--Congress makes the following findings:
            (1) The United States has entered into a settlement 
        agreement with the State of Idaho in the actions 
        captioned Public Service Co. of Colorado v. Batt, Civil 
        No. 91-0035-S-EJL, and United States v. Batt, Civil No. 
        91-0054-S-EJL, in the United States District Court for 
        the District of Idaho, regarding shipment of naval 
        spent nuclear fuel to Idaho, examination and storage of 
        such fuel in Idaho, and other matters.
            (2) Under this court enforceable agreement--
                    (A) the State of Idaho has agreed--
                            (i) to accept 575 shipments of 
                        naval spent nuclear fuel from the Navy 
                        into Idaho between October 17, 1995 and 
                        2035;
                            (ii) to accept certain shipments of 
                        spent nuclear fuel from the Department 
                        of Energy into Idaho between October 
                        17, 1995 and 2035; and
                            (iii) to allow the Navy and the 
                        Department of Energy, on an interim 
                        basis, to store the spent nuclear fuel 
                        in Idaho over the next 40 years; and
                    (B) the United States has made 
                commitments--
                            (i) to remove all spent nuclear 
                        fuel (except certain quantities for 
                        testing) from Idaho by 2035; and
                            (ii) to facilitate the cleanup and 
                        stabilization of radioactive waste at 
                        the Idaho National Engineering 
                        Laboratory.
            (3) The settlement agreement allows the Department 
        of Energy and the Department of the Navy to meet 
        responsibilities that are important to the national 
        security interests of the United States.
            (4) Authorizations and appropriations of funds will 
        be necessary in order to provide for fulfillment of the 
        terms and obligations set forth in the settlement 
        agreement.
    (b) Sense of Congress.--(1) Congress recognizes the need to 
implement the terms, conditions, rights, and obligations 
contained in the settlement agreement referred to in subsection 
(a)(1) and the consent order of the United States District 
Court for the District of Idaho, dated October 17, 1995, that 
effectuates the settlement agreement in accordance with those 
terms, conditions, rights, and obligations.
    (2) It is the sense of Congress that funds requested by the 
President to carry out the settlement agreement and such 
consent order should be appropriated for that purpose.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 
1996, $17,000,000 for the operation of the Defense Nuclear 
Facilities Safety Board under chapter 21 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2286 et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

        Subtitle A--Authorization of Disposals and Use of Funds

SEC. 3301. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``National Defense Stockpile'' means 
        the stockpile provided for in section 4 of the 
        Strategic and Critical Materials Stock Piling Act (50 
        U.S.C. 98c).
            (2) The term ``National Defense Stockpile 
        Transaction Fund'' means the fund in the Treasury of 
        the United States established under section 9(a) of the 
        Strategic and Critical Materials Stock Piling Act (50 
        U.S.C. 98h(a)).

SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 
1996, the National Defense Stockpile Manager may obligate up to 
$77,100,000 of the funds in the National Defense Stockpile 
Transaction Fund for the authorized uses of such funds under 
section 9(b)(2) of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98h(b)(2)).
    (b) Additional Obligations.--The National Defense Stockpile 
Manager may obligate amounts in excess of the amount specified 
in subsection (a) if the National Defense Stockpile Manager 
notifies Congress that extraordinary or emergency conditions 
necessitate the additional obligations. The National Defense 
Stockpile Manager may make the additional obligations described 
in the notification after the end of the 45-day period 
beginning on the date Congress receives the notification.
    (c) Limitations.--The authorities provided by this section 
shall be subject to such limitations as may be provided in 
appropriations Acts.

SEC. 3303. DISPOSAL OF CHROMITE AND MANGANESE ORES AND CHROMIUM FERRO 
                    AND MANGANESE METAL ELECTROLYTIC.

    (a) Domestic Upgrading.--In offering to enter into 
agreements pursuant to any provision of law for the disposal 
from the National Defense Stockpile of chromite and manganese 
ores or chromium ferro and manganese metal electrolytic, the 
President shall give a right of first refusal on all such 
offers to domestic ferroalloy upgraders.
    (b) Domestic Ferroalloy Upgrader Defined.--For purposes of 
this section, the term ``domestic ferroalloy upgrader'' means a 
company or other business entity that, as determined by the 
President--
            (1) is engaged in operations to upgrade chromite or 
        manganese ores of metallurgical grade or chromium ferro 
        and manganese metal electrolytic; and
            (2) conducts a significant level of its research, 
        development, engineering, and upgrading operations in 
        the United States.

SEC. 3304. RESTRICTIONS ON DISPOSAL OF MANGANESE FERRO.

    (a) Disposal of Lower Grade Material First.--The President 
may not dispose of high carbon manganese ferro in the National 
Defense Stockpile that meets the National Defense Stockpile 
classification of Grade One, Specification 30(a), as revised on 
May 22, 1992, until completing the disposal of all manganese 
ferro in the National Defense Stockpile that does not meet such 
classification. The President may not reclassify manganese 
ferro in the National Defense Stockpile after the date of the 
enactment of this Act.
    (b) Requirement for Remelting by Domestic Ferroalloy 
Producers.--Manganese ferro in the National Defense Stockpile 
that does not meet the classification specified in subsection 
(a) may be sold only for remelting by a domestic ferroalloy 
producer unless the President determines that a domestic 
ferroalloy producer is not available to acquire the material.
    (c) Domestic Ferroalloy Producer Defined.--For purposes of 
this section, the term ``domestic ferroalloy producer'' means a 
company or other business entity that, as determined by the 
President--
            (1) is engaged in operations to upgrade manganese 
        ores of metallurgical grade or manganese ferro; and
            (2) conducts a significant level of its research, 
        development, engineering, and upgrading operations in 
        the United States.

SEC. 3305. TITANIUM INITIATIVE TO SUPPORT BATTLE TANK UPGRADE PROGRAM.

    During each of the fiscal years 1996 through 2003, the 
Secretary of Defense shall transfer from stocks of the National 
Defense Stockpile up to 250 short tons of titanium sponge to 
the Secretary of the Army for use in the weight reduction 
portion of the main battle tank upgrade program. Transfers 
under this section shall be without charge to the Army, except 
that the Secretary of the Army shall pay all transportation and 
related costs incurred in connection with the transfer.

                    Subtitle B--Programmatic Change

SEC. 3311. TRANSFER OF EXCESS DEFENSE-RELATED MATERIALS TO STOCKPILE 
                    FOR DISPOSAL.

    (a) Transfer and Disposal.--Section 4 of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98c) is amended 
by adding at the end the following new subsection:
    ``(c)(1) The Secretary of Energy, in consultation with the 
Secretary of Defense, shall transfer to the stockpile for 
disposal in accordance with this Act uncontaminated materials 
that are in the Department of Energy inventory of materials for 
the production of defense-related items, are excess to the 
requirements of the Department for that purpose, and are 
suitable for transfer to the stockpile and disposal through the 
stockpile.
    ``(2) The Secretary of Defense shall determine whether 
materials are suitable for transfer to the stockpile under this 
subsection, are suitable for disposal through the stockpile, 
and are uncontaminated.''.
    (b) Conforming Amendment.--Subsection (a) of such section 
is amended by adding at the end the following:
            ``(10) Materials transferred to the stockpile under 
        subsection (c).''.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

         Subtitle A--Administration of Naval Petroleum Reserves

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    There is hereby authorized to be appropriated to the 
Secretary of Energy $148,786,000 for fiscal year 1996 for the 
purpose of carrying out activities under chapter 641 of title 
10, United States Code, relating to the naval petroleum 
reserves (as defined in section 7420(2) of such title). Funds 
appropriated pursuant to such authorization shall remain 
available until expended. Of the amount appropriated pursuant 
to the authorization of appropriations in the preceding 
sentence, the Secretary may use not more than $7,000,000 for 
carrying out activities related to the sale of Naval Petroleum 
Reserve Numbered 1 under section 3412.

SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM DURING FISCAL 
                    YEAR 1996.

    Notwithstanding section 7430(b)(2) of title 10, United 
States Code, during fiscal year 1996, any sale of any part of 
the United States share of petroleum produced from Naval 
Petroleum Reserves Numbered 1, 2, and 3 shall be made at a 
price not less than 90 percent of the current sales price, as 
estimated by the Secretary of Energy, of comparable petroleum 
in the same area.

SEC. 3403. EXTENSION OF OPERATING CONTRACT FOR NAVAL PETROLEUM RESERVE 
                    NUMBERED 1.

    Section 3503 of the National Defense Authorization Act of 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3111) is 
amended by striking out ``two years'' in the first sentence and 
inserting in lieu thereof ``three years''.

              Subtitle B--Sale of Naval Petroleum Reserve

SEC. 3411. DEFINITIONS.

    For purposes of this subtitle:
            (1) The terms ``Naval Petroleum Reserve Numbered 
        1'' and ``reserve'' mean Naval Petroleum Reserve 
        Numbered 1, commonly referred to as the Elk Hills Unit, 
        located in Kern County, California, and established by 
        Executive order of the President, dated September 2, 
        1912.
            (2) The term ``naval petroleum reserves'' has the 
        meaning given that term in section 7420(2) of title 10, 
        United States Code, except that the term does not 
        include Naval Petroleum Reserve Numbered 1.
            (3) The term ``unit plan contract'' means the unit 
        plan contract between equity owners of the lands within 
        the boundaries of Naval Petroleum Reserve Numbered 1 
        entered into on June 19, 1944.
            (4) The term ``effective date'' means the date of 
        the enactment of this Act.
            (5) The term ``Secretary'' means the Secretary of 
        Energy.
            (6) The term ``appropriate congressional committees 
        means the Committee on Armed Services of the Senate and 
        the Committee on National Security and the Committee on 
        Commerce of the House of Representatives.

SEC. 3412. SALE OF NAVAL PETROLEUM RESERVE NUMBERED 1.

    (a) Sale of Reserve Required.--Subject to section 3414, not 
later than two years after the effective date, the Secretary of 
Energy shall enter into one or more contracts for the sale of 
all right, title, and interest of the United States in and to 
all lands owned or controlled by the United States inside Naval 
Petroleum Reserve Numbered 1. Chapter 641 of title 10, United 
States Code, shall not apply to the sale of the reserve.
    (b) Equity Finalization.--(1) Not later than eight months 
after the effective date, the Secretary shall finalize equity 
interests of the known oil and gas zones in Naval Petroleum 
Reserve Numbered 1 in the manner provided by this subsection.
    (2) The Secretary shall retain the services of an 
independent petroleum engineer, mutually acceptable to the 
equity owners, who shall prepare a recommendation on final 
equity figures. The Secretary may accept the recommendation of 
the independent petroleum engineer for final equity in each 
known oil and gas zone and establish final equity interest in 
Naval Petroleum Reserve Numbered 1 in accordance with the 
recommendation, or the Secretary may use such other method to 
establish final equity interest in the reserve as the Secretary 
considers appropriate.
    (3) If, on the effective date, there is an ongoing equity 
redetermination dispute between the equity owners under section 
9(b) of the unit plan contract, the dispute shall be resolved 
in the manner provided in the unit plan contract within eight 
months after the effective date. The resolution shall be 
considered final for all purposes under this section.
    (c) Notice of Sale.--Not later than two months after the 
effective date, the Secretary shall publish a notice of intent 
to sell Naval Petroleum Reserve Numbered 1. The Secretary shall 
make all technical, geological, and financial information 
relevant to the sale of the reserve available to all interested 
and qualified buyers upon request. The Secretary, in 
consultation with the Administrator of General Services, shall 
ensure that the sale process is fair and open to all interested 
and qualified parties.
    (d) Establishment of Minimum Sale Price.--(1) Not later 
than seven months after the effective date, the Secretary shall 
retain the services of five independent experts in the 
valuation of oil and gas fields to conduct separate 
assessments, in a manner consistent with commercial practices, 
of the value of the interest of the United States in Naval 
Petroleum Reserve Numbered 1. The independent experts shall 
complete their assessments within 11 months after the effective 
date. In making their assessments, the independent experts 
shall consider (among other factors)--
            (A) all equipment and facilities to be included in 
        the sale;
            (B) the estimated quantity of petroleum and natural 
        gas in the reserve; and
            (C) the net present value of the anticipated 
        revenue stream that the Secretary and the Director of 
        the Office of Management and Budget jointly determine 
        the Treasury would receive from the reserve if the 
        reserve were not sold, adjusted for any anticipated 
        increases in tax revenues that would result if the 
        reserve were sold.
    (2) The independent experts retained under paragraph (1) 
shall also determine and submit to the Secretary the estimated 
total amount of the cost of any environmental restoration and 
remediation necessary at the reserve. The Secretary shallreport 
the estimate to the Director of the Office of Management and Budget, 
the Secretary of the Treasury, and Congress.
    (3) The Secretary, in consultation with the Director of the 
Office of Management and Budget, shall set the minimum 
acceptable price for the reserve. The Secretary may not set the 
minimum acceptable price below the higher of--
            (A) the average of the five assessments prepared 
        under paragraph (1); and
            (B) the average of three assessments after 
        excluding the high and low assessments.
    (e) Administration of Sale; Draft Contract.--(1) Not later 
than two months after the effective date, the Secretary shall 
retain the services of an investment banker or an appropriate 
equivalent financial adviser to independently administer, in a 
manner consistent with commercial practices and in a manner 
that maximizes sale proceeds to the Government, the sale of 
Naval Petroleum Reserve Numbered 1 under this section. Costs 
and fees of retaining the investment banker or financial 
adviser may be paid out of the proceeds of the sale of the 
reserve.
    (2) Not later than 11 months after the effective date, the 
investment banker or financial adviser retained under paragraph 
(1) shall complete a draft contract or contracts for the sale 
of Naval Petroleum Reserve Numbered 1, which shall accompany 
the solicitation of offers and describe the terms and 
provisions of the sale of the interest of the United States in 
the reserve.
    (3) The draft contract or contracts shall identify--
            (A) all equipment and facilities to be included in 
        the sale; and
            (B) any potential claim or liability (including 
        liability for environmental restoration and 
        remediation), and the extent of any such claim or 
        liability, for which the United States is responsible 
        under subsection (g).
    (4) The draft contract or contracts, including the terms 
and provisions of the sale of the interest of the United States 
in the reserve, shall be subject to review and approval by the 
Secretary, the Secretary of the Treasury, and the Director of 
the Office of Management and Budget. Each of those officials 
shall complete the review of, and approve or disapprove, the 
draft contract or contracts not later than 12 months after the 
effective date.
    (f) Solicitation of Offers.--(1) Not later than 13 months 
after the effective date, the Secretary shall publish the 
solicitation of offers for Naval Petroleum Reserve Numbered 1.
    (2) Not later than 18 months after the effective date, the 
Secretary shall identify the highest responsible offer or 
offers for purchase of the interest of the United States in 
Naval Petroleum Reserve Numbered 1 that, in total, meet or 
exceed the minimum acceptable price determined under subsection 
(d)(3).
    (3) The Secretary shall take such action immediately after 
the effective date as is necessary to obtain from an 
independent petroleum engineer within 10 months after that date 
a reserve report prepared in a manner consistent with 
commercial practices. The Secretary shall use the reserve 
report in support of the preparation of the solicitation of 
offers for the reserve.
    (g) Future Liabilities.--To effectuate the sale of the 
interest of the United States in Naval Petroleum Reserve 
Numbered 1, the Secretary may extend such indemnities and 
warranties as the Secretary considers reasonable and necessary 
to protect the purchaser from claims arising from the ownership 
in the reserve by the United States.
    (h) Maintaining Production.--Until the sale of Naval 
Petroleum Reserve Numbered 1 is completed under this section, 
the Secretary shall continue to produce the reserve at the 
maximum daily oil or gas rate from a reservoir, which will 
permit maximum economic development of the reservoir consistent 
with sound oil field engineering practices in accordance with 
section 3 of the unit plan contract.
    (i) Noncompliance With Deadlines.--At any time during the 
two-year period beginning on the effective date, if the 
Secretary determines that the actions necessary to complete the 
sale of the reserve within that period are not being taken or 
timely completed, the Secretary shall transmit to the 
appropriate congressional committees a written notification of 
that determination together with a plan setting forth the 
actions that will be taken to ensure that the sale of the 
reserve will be completed within that period. The Secretary 
shall consult with the Director of the Office of Management and 
Budget in preparing the plan for submission to the committees.
    (j) Oversight.--The Comptroller General shall monitor the 
actions of the Secretary relating to the sale of the reserve 
and report to the appropriate congressional committees any 
findings on such actions that the Comptroller General considers 
appropriate to report to the committees.
    (k) Acquisition of Services.--The Secretary may enter into 
contracts for the acquisition of services required under this 
section under the authority of paragraph (7) of section 303(c) 
of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 253(c)), except that the notification required under 
subparagraph (B) of such paragraph for each contract shall be 
submitted to Congress not less than 7 days before the award of 
the contract.

SEC. 3413. EFFECT OF SALE OF RESERVE.

    (a) Effect on Existing Contracts.--(1) In the case of any 
contract, in effect on the effective date, for the purchase of 
production from any part of the United States' share of Naval 
Petroleum Reserve Numbered 1, the sale of the interest of the 
United States in the reserve shall be subject to the contract 
for a period of three months after the closing date of the sale 
or until termination of the contract, whichever occurs first. 
The term of any contract entered into after the effective date 
for the purchase of the production shall not exceed the 
anticipated closing date for the sale of the reserve.
    (2) The Secretary shall exercise the termination procedures 
provided in the contract between the United States and Bechtel 
Petroleum Operation, Inc., Contract Number DE-ACO1-85FE60520 so 
that the contract terminates not later than the date of closing 
of the sale of Naval Petroleum Reserve Numbered 1 under section 
3412.
    (3) The Secretary shall exercise the termination procedures 
provided in the unit plan contract so that the unit 
plancontract terminates not later than the date of closing of the sale 
of reserve.
    (b) Effect on Antitrust Laws.--Nothing in this subtitle 
shall be construed to alter the application of the antitrust 
laws of the United States to the purchaser or purchasers (as 
the case may be) of Naval Petroleum Reserve Numbered 1 or to 
the lands in the reserve subject to sale under section 3412 
upon the completion of the sale.
    (c) Preservation of Private Right, Title, and Interest.--
Nothing in this subtitle shall be construed to adversely affect 
the ownership interest of any other entity having any right, 
title, and interest in and to lands within the boundaries of 
Naval Petroleum Reserve Numbered 1 and which are subject to the 
unit plan contract.
    (d) Transfer of Otherwise Nontransferable Permit.--The 
Secretary may transfer to the purchaser or purchasers (as the 
case may be) of Naval Petroleum Reserve Numbered 1 the 
incidental take permit regarding the reserve issued to the 
Secretary by the United States Fish and Wildlife Service and in 
effect on the effective date if the Secretary determines that 
transfer of the permit is necessary to expedite the sale of the 
reserve in a manner that maximizes the value of the sale to the 
United States. The transferred permit shall cover the identical 
activities, and shall be subject to the same terms and 
conditions, as apply to the permit at the time of the transfer.

SEC. 3414. CONDITIONS ON SALE PROCESS.

    (a) Notice Regarding Sale Conditions.--The Secretary may 
not enter into any contract for the sale of Naval Petroleum 
Reserve Numbered 1 under section 3412 until the end of the 31-
day period beginning on the date on which the Secretary submits 
to the appropriate congressional committees a written 
notification--
            (1) describing the conditions of the proposed sale; 
        and
            (2) containing an assessment by the Secretary of 
        whether it is in the best interests of the United 
        States to sell the reserve under such conditions.
    (b) Authority to Suspend Sale.--(1) The Secretary may 
suspend the sale of Naval Petroleum Reserve Numbered 1 under 
section 3412 if the Secretary and the Director of the Office of 
Management and Budget jointly determine that--
            (A) the sale is proceeding in a manner inconsistent 
        with achievement of a sale price that reflects the full 
        value of the reserve; or
            (B) a course of action other than the immediate 
        sale of the reserve is in the best interests of the 
        United States.
    (2) Immediately after making a determination under 
paragraph (1) to suspend the sale of Naval Petroleum Reserve 
Numbered 1, the Secretary shall submit to the appropriate 
congressional committees a written notification describing the 
basis for the determination and requesting a reconsideration of 
the merits of the sale of the reserve.
    (c) Effect of Reconsideration Notice.--After the Secretary 
submits a notification under subsection (b), the Secretary may 
not complete the sale of Naval Petroleum Reserve Numbered 1 
under section 3412 or any other provision of law unless the 
sale of the reserve is authorized in an Act of Congress enacted 
after the date of the submission of the notification.

SEC. 3415. TREATMENT OF STATE OF CALIFORNIA CLAIM REGARDING RESERVE.

    (a) Reservation of Funds.--After the costs incurred in the 
conduct of the sale of Naval Petroleum Reserve Numbered 1 under 
section 3412 are deducted, nine percent of the remaining 
proceeds from the sale of the reserve shall be reserved in a 
contingent fund in the Treasury for payment to the State of 
California for the Teachers' Retirement Fund of the State in 
the event that, and to the extent that, the claims of the State 
against the United States regarding production and proceeds of 
sale from Naval Petroleum Reserve Numbered 1 are--
            (1) settled by agreement with the United States 
        under subsection (c); or
            (2) finally resolved in favor of the State by a 
        court of competent jurisdiction, if a settlement 
        agreement is not reached.
    (b) Disposition of Funds.--In such amounts as may be 
provided in appropriation Acts, amounts in the contingent fund 
shall be available for paying a claim described in subsection 
(a). After final disposition of the claims, any unobligated 
balance in the contingent fund shall be credited to the general 
fund of the Treasury. If no payment is made from the contingent 
fund within 10 years after the effective date, amounts in the 
contingent fund shall be credited to the general fund of the 
Treasury.
    (c) Settlement Offer.--Not later than 30 days after the 
date of the sale of Naval Petroleum Reserve Numbered 1 under 
section 3412, the Secretary shall offer to settle all claims of 
the State of California against the United States with respect 
to lands in the reserve located in sections 16 and 36 of 
township 30 south, range 23 east, Mount Diablo Principal 
Meridian, California, and production or proceeds of sale from 
the reserve, in order to provide proper compensation for the 
State's claims. The Secretary shall base the amount of the 
offered settlement payment from the contingent fund on the fair 
value for the State's claims, including the mineral estate, not 
to exceed the amount reserved in the contingent fund.
    (d) Release of Claims.--Acceptance of the settlement offer 
made under subsection (c) shall be subject to the condition 
that all claims against the United States by the State of 
California for the Teachers' Retirement Fund of the State be 
released with respect to lands in Naval Petroleum Reserve 
Numbered 1, including sections 16 and 36 of township 30 south, 
range 23 east, Mount Diablo Principal Meridian, California, or 
production or proceeds of sale from the reserve.

SEC. 3416. STUDY OF FUTURE OF OTHER NAVAL PETROLEUM RESERVES.

    (a) Study Required.--The Secretary of Energy shall conduct 
a study to determine which of the following options, or 
combinations of options, regarding the naval petroleum reserves 
(other than Naval Petroleum Reserve Numbered 1) would maximize 
the value of the reserves to the United States:
            (1) Retention and operation of the naval petroleum 
        reserves by the Secretary under chapter 641 of title 
        10, United States Code.
            (2) Transfer of all or a part of the naval 
        petroleum reserves to the jurisdiction of another 
        Federal agency for administration under chapter 641 of 
        title 10, United States Code.
            (3) Transfer of all or a part of the naval 
        petroleum reserves to the Department of the Interior 
        for leasing in accordance with the Mineral Leasing Act 
        (30 U.S.C. 181 et seq.) and surface management in 
        accordance with the Federal Land Policy and Management 
        Act (43 U.S.C. 1701 et seq.).
            (4) Sale of the interest of the United States in 
        the naval petroleum reserves.
    (b) Conduct of Study.--The Secretary shall retain an 
independent petroleum consultant to conduct the study.
    (c) Considerations Under Study.--An examination of the 
value to be derived by the United States from the transfer or 
sale of the naval petroleum reserves shall include an 
assessment and estimate of the fair market value of the 
interest of the United States in the naval petroleum reserves. 
The assessment and estimate shall be made in a manner 
consistent with customary property valuation practices in the 
oil and gas industry.
    (d) Report and Recommendations Regarding Study.--Not later 
than June 1, 1996, the Secretary shall submit to Congress a 
report describing the results of the study and containing such 
recommendations (including proposed legislation) as the 
Secretary considers necessary to implement the option, or 
combination of options, identified in the study that would 
maximize the value of the naval petroleum reserves to the 
United States.

                  TITLE XXXV--PANAMA CANAL COMMISSION

              Subtitle A--Authorization of Appropriations

SEC. 3501. SHORT TITLE.

    This subtitle may be cited as the ``Panama Canal Commission 
Authorization Act for Fiscal Year 1996''.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

    (a) In General.--Subject to subsection (b), the Panama 
Canal Commission is authorized to make such expenditures within 
the limits of funds and borrowing authority available to it in 
accordance with law, and to make such contracts and commitments 
without regard to fiscal year limitations, as may be necessary 
under the Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.) for 
the operation, maintenance, and improvement of the Panama Canal 
for fiscal year 1996.
    (b) Limitations.--For fiscal year 1996, the Panama Canal 
Commission may expend from funds in the Panama Canal Revolving 
Fund not more than $50,741,000 for administrative expenses, of 
which--
            (1) not more than $15,000 may be used for official 
        reception and representation expenses of the 
        Supervisory Board of the Commission;
            (2) not more than $10,000 may be used for official 
        reception and representation expenses of the Secretary 
        of the Commission; and
            (3) not more than $45,000 may be used for official 
        reception and representation expenses of the 
        Administrator of the Commission.
    (c) Replacement Vehicles.--Funds available to the Panama 
Canal Commission shall be available for the purchase of not to 
exceed 38 passenger motor vehicles (including large heavy-duty 
vehicles to be used to transport Commission personnel across 
the isthmus of Panama) at a cost per vehicle of not more than 
$19,500. A vehicle may be purchased with such funds only as 
necessary to replace another passenger motor vehicle of the 
Commission.

SEC. 3503. EXPENDITURES IN ACCORDANCE WITH OTHER LAWS.

    Expenditures authorized under this subtitle may be made 
only in accordance with the Panama Canal Treaties of 1977 and 
any law of the United States implementing those treaties.

   Subtitle B--Reconstitution of Commission as Government Corporation

SEC. 3521. SHORT TITLE.

    This subtitle may be cited as the ``Panama Canal Amendments 
Act of 1995''.

SEC. 3522. RECONSTITUTION OF COMMISSION AS GOVERNMENT CORPORATION.

    (a) In General.--Section 1101 of the Panama Canal Act of 
1979 (22 U.S.C. 3611) is amended to read as follows:

    ``establishment, purposes, offices, and residence of commission

    ``Sec. 1101. (a) For the purposes of managing, operating, 
and maintaining the Panama Canal and its complementary works, 
installations and equipment, and of conducting operations 
incident thereto, in accordance with the Panama Canal Treaty of 
1977 and related agreements, the Panama Canal Commission 
(hereinafter in this Act referred to as the `Commission') is 
established as a wholly owned government corporation (as that 
term is used in chapter 91 of title 31, United States Code) 
within the executive branch of the Government of the United 
States. The authority of the President with respect to the 
Commission shall be exercised through the Secretary of Defense.
    ``(b) The principal office of the Commission shall be 
located in the Republic of Panama in one of the areas made 
available for use of the United States under the Panama Canal 
Treaty of 1977 and related agreements, but the Commission may 
establish branch offices in such other places as it considers 
necessary or appropriate for the conduct of its business. 
Within the meaning of the laws of the United States relating to 
venue in civil actions, the Commission is an inhabitant and 
resident of the District of Columbia and the eastern judicial 
district of Louisiana.''.
    (b) Clerical Amendment.--The item relating to such section 
in the table of contents in section 1 of such Act is amended to 
read as follows:

``1101. Establishment, Purposes, Offices, and Residence of 
          Commission.''.

SEC. 3523. SUPERVISORY BOARD.

    Section 1102 of the Panama Canal Act of 1979 (22 U.S.C. 
3612) is amended by striking out so much as precedes subsection 
(b) and inserting in lieu thereof the following:

                          ``supervisory board

    ``Sec. 1102. (a) The Commission shall be supervised by a 
Board composed of nine members, one of whom shall be the 
Secretary of Defense or an officer of the Department of Defense 
designated by the Secretary. Not less than five members of the 
Board shall be nationals of the United States and the remaining 
members of the Board shall be nationals of the Republic of 
Panama. Three members of the Board who are nationals of the 
United States shall hold no other office in, and shall not be 
employed by, the Government of the United States, and shall be 
chosen for the independent perspective they can bring to the 
Commission's affairs. Members of the Board who are nationals of 
the United States shall cast their votes as directed by the 
Secretary of Defense or a designee of the Secretary of 
Defense.''.

SEC. 3524. GENERAL AND SPECIFIC POWERS OF COMMISSION.

    (a) In General.--The Panama Canal Act of 1979 (22 U.S.C. 
3601 et seq.) is amended by inserting after section 1102 the 
following new sections:

                     ``general powers of commission

    ``Sec. 1102a. (a) The Commission may adopt, alter, and use 
a corporate seal, which shall be judicially noticed.
    ``(b) The Commission may by action of the Board of 
Directors adopt, amend, and repeal bylaws governing the 
conductof its general business and the performance of the powers and 
duties granted to or imposed upon it by law.
    ``(c) The Commission may sue and be sued in its corporate 
name, except that--
            ``(1) the amenability of the Commission to suit is 
        limited by Article VIII of the Panama Canal Treaty of 
        1977, section 1401 of this Act, and otherwise by law;
            ``(2) an attachment, garnishment, or similar 
        process may not be issued against salaries or other 
        moneys owed by the Commission to its employees except 
        as provided by section 5520a of title 5, United States 
        Code, and sections 459, 461, and 462 of the Social 
        Security Act (42 U.S.C. 659, 661, 662), or as otherwise 
        specifically authorized by the laws of the United 
        States; and
            ``(3) the Commission is exempt from the payment of 
        interest on claims and judgments.
    ``(d) The Commission may enter into contracts, leases, 
agreements, or other transactions.
    ``(e) The Commission--
            ``(1) may determine the character of, and necessity 
        for, its obligations and expenditures and the manner in 
        which they shall be incurred, allowed, and paid; and
            ``(2) may incur, allow, and pay its obligations and 
        expenditures, subject to pertinent provisions of law 
        generally applicable to Government corporations.
    ``(f) The Commission shall have the priority of the 
Government of the United States in the payment of debts out of 
bankrupt estates.
    ``(g) The authority of the Commission under this section 
and section 1102B is subject to the Panama Canal Treaty of 1977 
and related agreements, and to chapter 91 of title 31, United 
States Code.
    ``Sec. 1102b. (a) The Commission may manage, operate, and 
maintain the Panama Canal.
    ``(b) The Commission may construct or acquire, establish, 
maintain, and operate such activities, facilities, and 
appurtenances as necessary and appropriate for the 
accomplishment of the purposes of this Act, including the 
following:
            ``(1) Docks, wharves, piers, and other shoreline 
        facilities.
            ``(2) Shops and yards.
            ``(3) Marine railways, salvage and towing 
        facilities, fuel-handling facilities, and motor 
        transportation facilities.
            ``(4) Power systems, water systems, and a telephone 
        system.
            ``(5) Construction facilities.
            ``(6) Living quarters and other buildings.
            ``(7) Warehouses, storehouses, a printing plant, 
        and manufacturing, processing, or service facilities in 
        connection therewith.
            ``(8) Recreational facilities.
    ``(c) The Commission may use the United States mails in the 
same manner and under the same conditions as the executive 
departments of the Federal Government.
    ``(d) The Commission may take such actions as are necessary 
or appropriate to carry out the powers specifically conferred 
upon it.''.
    (b) Clerical Amendment.--The table of contents in section 1 
of such Act is amended by inserting after the item relating to 
section 1102 the following new items:

``1102a. General powers of Commission.
``1102b. Specific powers of Commission.''.

SEC. 3525. CONGRESSIONAL REVIEW OF BUDGET.

    Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 
3712) is amended--
            (1) in subsection (c)--
                    (A) by striking out ``and subject to 
                paragraph (2)'' in paragraph (1);
                    (B) by striking out paragraph (2); and
                    (C) by redesignating paragraph (3) as 
                paragraph (2); and
            (2) by striking out subsection (e) and inserting in 
        lieu thereof the following new subsection (e):
    ``(e) In accordance with section 9104 of title 31, United 
States Code, Congress shall review the annual budget of the 
Commission.''.

SEC. 3526. AUDITS.

    (a) In General.--Section 1313 of the Panama Canal Act of 
1979 (22 U.S.C. 3723) is amended--
            (1) by striking out the heading for the section and 
        inserting in lieu thereof the following: ``audits'';
            (2) in subsection (a)--
                    (A) by striking out ``Financial 
                transactions'' and inserting in lieu thereof 
                ``Notwithstanding any other provision of law, 
                and subject to subsection (d), financial 
                transactions'';
                    (B) by striking out ``pursuant to the 
                Accounting and Auditing Act of 1950 (31 U.S.C. 
                65 et seq.)'';
                    (C) by striking out ``audit pursuant to 
                such Act'' in the second sentence and inserting 
                in lieu thereof ``such audit'';
                    (D) by striking out ``An audit pursuant to 
                such Act'' in the last sentence and inserting 
                in lieu thereof ``Any such audit''; and
                    (E) by adding at the end the following new 
                sentence: ``An audit performed under this 
                section is subject to the requirements of 
                paragraphs (2), (3), and (5) of section 9105(a) 
                of title 31, United States Code.'';
            (3) in subsection (b), by striking out ``The 
        Comptroller General'' in the first sentence and 
        inserting in lieu thereof ``Subject to subsection (d), 
        the Comptroller General''; and
            (4) by adding at the end the following new 
        subsections:
    ``(d) At the discretion of the Board provided for in 
section 1102, the Commission may hire independent auditors to 
perform, in lieu of the Comptroller General, the audit and 
reporting functions prescribed in subsections (a) and (b).
    ``(e) In addition to auditing the financial statements of 
the Commission, the Comptroller General (or the independent 
auditor if one is employed pursuant to subsection (d)) shall, 
inaccordance with standards for an examination of a financial 
forecast established by the American Institute of Certified Public 
Accountants, examine and report on the Commission's financial forecast 
that it will be in a position to meet its financial liabilities on 
December 31, 1999.''.
    (b) Clerical Amendment.--The item relating to such section 
in the table of contents in section 1 of such Act is amended to 
read as follows:

``1313. Audits.''.

SEC. 3527. PRESCRIPTION OF MEASUREMENT RULES AND RATES OF TOLLS.

    Section 1601 of the Panama Canal Act of 1979 (22 U.S.C. 
3791) is amended to read as follows:

         ``prescription of measurement rules and rates of tolls

    ``Sec. 1601. The Commission may, subject to the provisions 
of this Act, prescribe and from time to time change--
            ``(1) the rules for the measurement of vessels for 
        the Panama Canal; and
            ``(2) the tolls that shall be levied for use of the 
        Panama Canal.''.

SEC. 3528. PROCEDURES FOR CHANGES IN RULES OF MEASUREMENT AND RATES OF 
                    TOLLS.

    Section 1604 of the Panama Canal Act of 1979 (22 U.S.C. 
3794) is amended--
            (1) in subsection (a), by striking out ``1601(a)'' 
        in the first sentence and inserting in lieu thereof 
        ``1601'';
            (2) by striking out subsection (c) and inserting in 
        lieu thereof the following new subsection (c):
    ``(c) After the proceedings have been conducted pursuant to 
subsections (a) and (b), the Commission may change the rules of 
measurement or rates of tolls, as the case may be. The 
Commission shall publish notice of any such change in the 
Federal Register not less than 30 days before the effective 
date of the change.''; and
            (3) by striking out subsections (d) and (e) and 
        redesignating subsection (f) as subsection (d).

SEC. 3529. MISCELLANEOUS TECHNICAL AMENDMENTS.

    The Panama Canal Act of 1979 is amended--
            (1) in section 1205 (22 U.S.C. 3645), by striking 
        out ``appropriation'' in the last sentence and 
        inserting in lieu thereof ``fund'';
            (2) in section 1303 (22 U.S.C. 3713), by striking 
        out ``The authority of this section may not be used for 
        administrative expenses.'';
            (3) in section 1321(d) (22 U.S.C. 3731(d)), by 
        striking out ``appropriations or'' in the second 
        sentence;
            (4) in section 1401(c) (22 U.S.C. 3761(c)), by 
        striking out ``appropriated for or'' in the first 
        sentence;
            (5) in section 1415 (22 U.S.C. 3775), by striking 
        out ``appropriated or'' in the second sentence; and
            (6) in section 1416 (22 U.S.C. 3776), by striking 
        out ``appropriated or'' in the third sentence.

SEC. 3530. CONFORMING AMENDMENT TO TITLE 31, UNITED STATES CODE.

    Section 9101(3) of title 31, United States Code, is amended 
by adding at the end the following:
                    ``(P) the Panama Canal Commission.''.

                 DIVISION D--FEDERAL ACQUISITION REFORM

SEC. 4001. SHORT TITLE.

    This division may be cited as the ``Federal Acquisition 
Reform Act of 1996''.

                         TITLE XLI--COMPETITION

SEC. 4101. EFFICIENT COMPETITION.

    (a) Armed Services Acquisitions.--Section 2304 of title 10, 
United States Code, is amended--
            (1) by redesignating subsection (j) as subsection 
        (k); and
            (2) by inserting after subsection (i) the following 
        new subsection (j):
    ``(j) The Federal Acquisition Regulation shall ensure that 
the requirement to obtain full and open competition is 
implemented in a manner that is consistent with the need to 
efficiently fulfill the Government's requirements.''.
    (b) Civilian Agency Acquisitions.--Section 303 of the 
Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 253) is amended--
            (1) by redesignating subsection (h) as subsection 
        (i); and
            (2) by inserting after subsection (g) the following 
        new subsection (h):
    ``(h) The Federal Acquisition Regulation shall ensure that 
the requirement to obtain full and open competition is 
implemented in a manner that is consistent with the need to 
efficiently fulfill the Government's requirements.''.
    (c) Revisions to Notice Thresholds.--Section 18(a)(1)(B) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 
416(a)(1)(B)) is amended--
            (A) by striking out ``subsection (f)--'' and all 
        that follows through the end of the subparagraph and 
        inserting in lieu thereof ``subsection (b); and''; and
            (B) by inserting after ``property or services'' the 
        following: ``for a price expected to exceed $10,000, 
        but not to exceed $25,000,''.

SEC. 4102. EFFICIENT APPROVAL PROCEDURES.

    (a) Armed Services Acquisitions.--Section 2304(f)(1)(B) of 
title 10, United States Code, is amended--
            (1) in clause (i)--
                    (A) by striking out ``$100,000 (but equal 
                to or less than $1,000,000)'' and inserting in 
                lieu thereof ``$500,000 (but equal to or less 
                than $10,000,000)''; and
                    (B) by striking out ``(ii), (iii), or 
                (iv)'' and inserting in lieu thereof ``(ii) or 
                (iii)'';
            (2) in clause (ii)--
                    (A) by striking out ``$1,000,000 (but equal 
                to or less than $10,000,000)'' and inserting in 
                lieu thereof ``$10,000,000 (but equal to or 
                less than $50,000,000)''; and
                    (B) by adding ``or'' at the end;
            (3) by striking out clause (iii); and
            (4) by redesignating clause (iv) as clause (iii).
    (b) Civilian Agency Acquisitions.--Section 303(f)(1)(B) of 
the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 253(f)(1)(B)) is amended--
            (1) in clause (i)--
                    (A) by striking out ``$100,000 (but equal 
                to or less than $1,000,000)'' and inserting in 
                lieu thereof ``$500,000 (but equal to or less 
                than $10,000,000)''; and
                    (B) by striking out ``(ii), (iii), or 
                (iv);'' and inserting in lieu thereof ``(ii) or 
                (iii); and'';
            (2) in clause (ii)--
                    (A) by striking out ``$1,000,000 (but equal 
                to or less than $10,000,000)'' and inserting in 
                lieu thereof ``$10,000,000 (but equal to or 
                less than $50,000,000)''; and
                    (B) by striking out the semicolon after 
                ``civilian'' and inserting in lieu thereof a 
                comma; and
            (3) in clause (iii), by striking out 
        ``$10,000,000'' and inserting in lieu thereof 
        ``$50,000,000''.

SEC. 4103. EFFICIENT COMPETITIVE RANGE DETERMINATIONS.

    (a) Armed Services Acquisitions.--Paragraph (4) of 2305(b) 
of title 10, United States Code, is amended--
            (1) in subparagraph (C), by striking out ``(C)'', 
        by transferring the text to the end of subparagraph 
        (B), and in that text by striking out ``Subparagraph 
        (B)'' and inserting in lieu thereof ``This 
        subparagraph'';
            (2) by redesignating subparagraph (B) as 
        subparagraph (C); and
            (3) by inserting before subparagraph (C) (as so 
        redesignated) the following new subparagraph (B):
    ``(B) If the contracting officer determines that the number 
of offerors that would otherwise be included in the competitive 
range under subparagraph (A)(i) exceeds the number at which an 
efficient competition can be conducted, the contracting officer 
may limit the number of proposals in the competitive range, in 
accordance with the criteria specified in the solicitation, to 
the greatest number that will permit an efficient competition 
among the offerors rated most highly in accordance with such 
criteria.''.
    (b) Civilian Agency Acquisitions.--Section 303B(d) of the 
Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 253b(d)) is amended--
            (1) by redesignating paragraph (2) as paragraph 
        (3); and
            (2) by inserting before paragraph (3) (as so 
        redesignated) the following new paragraph (2):
    ``(2) If the contracting officer determines that the number 
of offerors that would otherwise be included in the competitive 
range under paragraph (1)(A) exceeds the number at which an 
efficient competition can be conducted, the contracting officer 
may limit the number of proposals in the competitive range, in 
accordance with the criteria specified in the solicitation, to 
the greatest number that will permit an efficient competition 
among the offerors rated most highly in accordance with such 
criteria.''.

SEC. 4104. PREAWARD DEBRIEFINGS.

    (a) Armed Services Acquisitions.--Section 2305(b) of title 
10, United States Code, is amended--
            (1) by striking out subparagraph (F) of paragraph 
        (5);
            (2) by redesignating paragraph (6) as paragraph 
        (9); and
            (3) by inserting after paragraph (5) the following 
        new paragraphs:
    ``(6)(A) When the contracting officer excludes an offeror 
submitting a competitive proposal from the competitive range 
(or otherwise excludes such an offeror from further 
consideration prior to the final source selection decision), 
the excluded offeror may request in writing, within three days 
after the date on which the excluded offeror receives notice of 
its exclusion, a debriefing prior to award. The contracting 
officer shall make every effort to debrief the unsuccessful 
offeror as soon as practicable but may refuse the request for a 
debriefing if it is not in the best interests of the Government 
to conduct a debriefing at that time.
    ``(B) The contracting officer is required to debrief an 
excluded offeror in accordance with paragraph (5) of this 
section only if that offeror requested and was refused a 
preaward debriefing under subparagraph (A) of this paragraph.
    ``(C) The debriefing conducted under this subsection shall 
include--
            ``(i) the executive agency's evaluation of the 
        significant elements in the offeror's offer;
            ``(ii) a summary of the rationale for the offeror's 
        exclusion; and
            ``(iii) reasonable responses to relevant questions 
        posed by the debriefed offeror as to whether source 
        selection procedures set forth in the solicitation, 
        applicable regulations, and other applicable 
        authorities were followed by the executive agency.
    ``(D) The debriefing conducted pursuant to this subsection 
may not disclose the number or identity of other offerors and 
shall not disclose information about the content, ranking, or 
evaluation of other offerors' proposals.
    ``(7) The contracting officer shall include a summary of 
any debriefing conducted under paragraph (5) or (6) in the 
contract file.
    ``(8) The Federal Acquisition Regulation shall include a 
provision encouraging the use of alternative dispute resolution 
techniques to provide informal, expeditious, and inexpensive 
procedures for an offeror to consider using before filing a 
protest, prior to the award of a contract, of the exclusion of 
the offeror from the competitive range (or otherwise from 
further consideration) for that contract.''.
    (b) Civilian Agency Acquisitions.--Section 303B of the 
Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 253b) is amended--
            (1) by striking out paragraph (6) of subsection 
        (e);
            (2) by redesignating subsections (f), (g), (h), and 
        (i) as subsections (i), (j), (k), and (l), 
        respectively; and
            (3) by inserting after subsection (e) the following 
        new subsections:
    ``(f)(1) When the contracting officer excludes an offeror 
submitting a competitive proposal from the competitive range 
(or otherwise excludes such an offeror from further 
consideration prior to the final source selection decision), 
the excluded offeror may request in writing, within 3 days 
after the date on which the excluded offeror receives notice of 
its exclusion, a debriefing prior to award. The contracting 
officer shall make every effort to debrief the unsuccessful 
offeror as soon as practicable but may refuse the request for a 
debriefing if it is not in the best interests of the Government 
to conduct a debriefing at that time.
    ``(2) The contracting officer is required to debrief an 
excluded offeror in accordance with subsection (e) of this 
sectiononly if that offeror requested and was refused a 
preaward debriefing under paragraph (1) of this subsection.
    ``(3) The debriefing conducted under this subsection shall 
include--
            ``(A) the executive agency's evaluation of the 
        significant elements in the offeror's offer;
            ``(B) a summary of the rationale for the offeror's 
        exclusion; and
            ``(C) reasonable responses to relevant questions 
        posed by the debriefed offeror as to whether source 
        selection procedures set forth in the solicitation, 
        applicable regulations, and other applicable 
        authorities were followed by the executive agency.
    ``(4) The debriefing conducted pursuant to this subsection 
may not disclose the number or identity of other offerors and 
shall not disclose information about the content, ranking, or 
evaluation of other offerors' proposals.
    ``(g) The contracting officer shall include a summary of 
any debriefing conducted under subsection (e) or (f) in the 
contract file.
    ``(h) The Federal Acquisition Regulation shall include a 
provision encouraging the use of alternative dispute resolution 
techniques to provide informal, expeditious, and inexpensive 
procedures for an offeror to consider using before filing a 
protest, prior to the award of a contract, of the exclusion of 
the offeror from the competitive range (or otherwise from 
further consideration) for that contract.''.

SEC. 4105. DESIGN-BUILD SELECTION PROCEDURES.

    (a) Armed Services Acquisitions.--(1) Chapter 137 of title 
10, United States Code, is amended by inserting after section 
2305 the following new section:

``Sec. 2305a. Design-build selection procedures

    ``(a) Authorization.--Unless the traditional acquisition 
approach of design-bid-build established under the Brooks 
Architect-Engineers Act (41 U.S.C. 541 et seq.) is used or 
another acquisition procedure authorized by law is used, the 
head of an agency shall use the two-phase selection procedures 
authorized in this section for entering into a contract for the 
design and construction of a public building, facility, or work 
when a determination is made under subsection (b) that the 
procedures are appropriate for use.
    ``(b) Criteria for Use.--A contracting officer shall make a 
determination whether two-phase selection procedures are 
appropriate for use for entering into a contract for the design 
and construction of a public building, facility, or work when 
the contracting officer anticipates that three or more offers 
will be received for such contract, design work must be 
performed before an offeror can develop a price or cost 
proposal for such contract, the offeror will incur a 
substantial amount of expense in preparing the offer, and the 
contracting officer has considered information such as the 
following:
            ``(1) The extent to which the project requirements 
        have been adequately defined.
            ``(2) The time constraints for delivery of the 
        project.
            ``(3) The capability and experience of potential 
        contractors.
            ``(4) The suitability of the project for use of the 
        two-phase selection procedures.
            ``(5) The capability of the agency to manage the 
        two-phase selection process.
            ``(6) Other criteria established by the agency.
    ``(c) Procedures Described.--Two-phase selection procedures 
consist of the following:
            ``(1) The agency develops, either in-house or by 
        contract, a scope of work statement for inclusion in 
        the solicitation that defines the project and provides 
        prospective offerors with sufficient information 
        regarding the Government's requirements (which may 
        include criteria and preliminary design, budget 
        parameters, and schedule or delivery requirements) to 
        enable the offerors to submit proposals which meet the 
        Government's needs. If the agency contracts for 
        development of the scope of work statement, the agency 
        shall contract for architectural and engineering 
        services as defined by and in accordance with the 
        Brooks Architect-Engineers Act (40 U.S.C. 541 et seq.).
            ``(2) The contracting officer solicits phase-one 
        proposals that--
                    ``(A) include information on the 
                offeror's--
                            ``(i) technical approach; and
                            ``(ii) technical qualifications; 
                        and
                    ``(B) do not include--
                            ``(i) detailed design information; 
                        or
                            ``(ii) cost or price information.
            ``(3) The evaluation factors to be used in 
        evaluating phase-one proposals are stated in the 
        solicitation and include specialized experience and 
        technical competence, capability to perform, past 
        performance of the offeror's team (including the 
        architect-engineer and construction members of the 
        team) and other appropriate factors, except that cost-
        related or price-related evaluation factors are not 
        permitted. Each solicitation establishes the relative 
        importance assigned to the evaluation factors and 
        subfactors that must be considered in the evaluation of 
        phase-one proposals. The agency evaluates phase-one 
        proposals on the basis of the phase-one evaluation 
        factors set forth in the solicitation.
            ``(4) The contracting officer selects as the most 
        highly qualified the number of offerors specified in 
        the solicitation to provide the property or services 
        under the contract and requests the selected offerors 
        to submit phase-two competitive proposals that include 
        technical proposals and cost or price information. Each 
        solicitation establishes with respect to phase two--
                    ``(A) the technical submission for the 
                proposal, including design concepts or proposed 
                solutions to requirements addressed within the 
                scope of work (or both), and
                    ``(B) the evaluation factors and 
                subfactors, including cost or price, that must 
                be considered in the evaluations of proposals 
                in accordance with paragraphs (2), (3), and (4) 
                of section 2305(a) of this title.
        The contracting officer separately evaluates the 
        submissions described in subparagraphs (A) and (B).
            ``(5) The agency awards the contract in accordance 
        with section 2305(b)(4) of this title.
    ``(d) Solicitation to State Number of Offerors To Be 
Selected for Phase Two Requests for Competitive Proposals.--A 
solicitation issued pursuant to the procedures described in 
subsection (c) shall state the maximum number of offerors that 
are to be selected to submit competitive proposals pursuant to 
subsection (c)(4). The maximum number specified in the 
solicitation shall not exceed 5 unless the agency determines 
with respect to an individual solicitation that a specified 
number greater than 5 is in the Government's interest and is 
consistent with the purposes and objectives of the two-phase 
selection process.
    ``(e) Requirement for Guidance and Regulations.--The 
Federal Acquisition Regulation shall include guidance--
            ``(1) regarding the factors that may be considered 
        in determining whether the two-phase contracting 
        procedures authorized by subsection (a) are appropriate 
        for use in individual contracting situations;
            ``(2) regarding the factors that may be used in 
        selecting contractors; and
            ``(3) providing for a uniform approach to be used 
        Government-wide.''.
    (2) The table of sections at the beginning of chapter 137 
of such title is amended by adding after the item relating to 
section 2305 the following new item:

``2305a. Design-build selection procedures.''.

    (b) Civilian Agency Acquisitions.--(1) Title III of the 
Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 251 et seq.) is amended by inserting after section 303L 
the following new section:

``SEC. 303M. DESIGN-BUILD SELECTION PROCEDURES.

    ``(a) Authorization.--Unless the traditional acquisition 
approach of design-bid-build established under the Brooks 
Architect-Engineers Act (title IX of this Act) is used or 
another acquisition procedure authorized by law is used, the 
head of an executive agency shall use the two-phase selection 
procedures authorized in this section for entering into a 
contract for the design and construction of a public building, 
facility, or work when a determination is made under subsection 
(b) that the procedures are appropriate for use.
    ``(b) Criteria for Use.--A contracting officer shall make a 
determination whether two-phase selection procedures are 
appropriate for use for entering into a contract for the design 
and construction of a public building, facility, or work when 
the contracting officer anticipates that three or more offers 
will be received for such contract, design work must be 
performed before an offeror can develop a price or cost 
proposal for such contract, the offeror will incur a 
substantial amount of expense in preparing the offer, and the 
contracting officer has considered information such as the 
following:
            ``(1) The extent to which the project requirements 
        have been adequately defined.
            ``(2) The time constraints for delivery of the 
        project.
            ``(3) The capability and experience of potential 
        contractors.
            ``(4) The suitability of the project for use of the 
        two-phase selection procedures.
            ``(5) The capability of the agency to manage the 
        two-phase selection process.
            ``(6) Other criteria established by the agency.
    ``(c) Procedures Described.--Two-phase selection procedures 
consist of the following:
            ``(1) The agency develops, either in-house or by 
        contract, a scope of work statement for inclusion in 
        the solicitation that defines the project and provides 
        prospective offerors with sufficient information 
        regarding the Government's requirements (which may 
        include criteria and preliminary design, budget 
        parameters, and schedule or delivery requirements) to 
        enable the offerors to submit proposals which meet the 
        Government's needs. If the agency contracts for 
        development of the scope of work statement, the agency 
        shall contract for architectural and engineering 
        services as defined by and in accordance with the 
        Brooks Architect-Engineers Act (40 U.S.C. 541 et seq.).
            ``(2) The contracting officer solicits phase-one 
        proposals that--
                    ``(A) include information on the 
                offeror's--
                            ``(i) technical approach; and
                            ``(ii) technical qualifications; 
                        and
                    ``(B) do not include--
                            ``(i) detailed design information; 
                        or
                            ``(ii) cost or price information.
            ``(3) The evaluation factors to be used in 
        evaluating phase-one proposals are stated in the 
        solicitation and include specialized experience and 
        technical competence, capability to perform, past 
        performance of the offeror's team (including the 
        architect-engineer and construction members of the 
        team) and other appropriate factors, except that cost-
        related or price-related evaluation factors are not 
        permitted. Each solicitation establishes the relative 
        importance assigned to the evaluation factors and 
        subfactors that must be considered in the evaluation of 
        phase-one proposals. The agency evaluates phase-one 
        proposals on the basis of the phase-one evaluation 
        factors set forth in the solicitation.
            ``(4) The contracting officer selects as the most 
        highly qualified the number of offerors specified in 
        the solicitation to provide the property or services 
        under the contract and requests the selected offerors 
        to submit phase-two competitive proposals that include 
        technical proposals and cost or price information. Each 
        solicitation establishes with respect to phase two--
                    ``(A) the technical submission for the 
                proposal, including design concepts or proposed 
                solutions to requirements addressed within the 
                scope of work (or both), and
                    ``(B) the evaluation factors and 
                subfactors, including cost or price, that must 
                be considered in theevaluations of proposals in 
accordance with subsections (b), (c), and (d) of section 303A.
        The contracting officer separately evaluates the 
        submissions described in subparagraphs (A) and (B).
            ``(5) The agency awards the contract in accordance 
        with section 303B of this title.
    ``(d) Solicitation to State Number of Offerors To Be 
Selected for Phase Two Requests for Competitive Proposals.--A 
solicitation issued pursuant to the procedures described in 
subsection (c) shall state the maximum number of offerors that 
are to be selected to submit competitive proposals pursuant to 
subsection (c)(4). The maximum number specified in the 
solicitation shall not exceed 5 unless the agency determines 
with respect to an individual solicitation that a specified 
number greater than 5 is in the Government's interest and is 
consistent with the purposes and objectives of the two-phase 
selection process.
    ``(e) Requirement for Guidance and Regulations.--The 
Federal Acquisition Regulation shall include guidance--
            ``(1) regarding the factors that may be considered 
        in determining whether the two-phase contracting 
        procedures authorized by subsection (a) are appropriate 
        for use in individual contracting situations;
            ``(2) regarding the factors that may be used in 
        selecting contractors; and
            ``(3) providing for a uniform approach to be used 
        Government-wide.''.
    (2) The table of sections at the beginning of such Act is 
amended by inserting after the item relating to section 303L 
the following new item:

``Sec. 303M. Design-build selection procedures.''.

                      TITLE XLII--COMMERCIAL ITEMS

SEC. 4201. COMMERCIAL ITEM EXCEPTION TO REQUIREMENT FOR CERTIFIED COST 
                    OR PRICING DATA.

    (a) Armed Services Acquisitions.--(1) Subsections (b), (c), 
and (d) of section 2306a of title 10, United States Code, are 
amended to read as follows:
    ``(b) Exceptions.--
            ``(1) In general.--Submission of certified cost or 
        pricing data shall not be required under subsection (a) 
        in the case of a contract, a subcontract, or 
        modification of a contract or subcontract--
                    ``(A) for which the price agreed upon is 
                based on--
                            ``(i) adequate price competition; 
                        or
                            ``(ii) prices set by law or 
                        regulation;
                    ``(B) for the acquisition of a commercial 
                item; or
                    ``(C) in an exceptional case when the head 
                of the procuring activity, without delegation, 
                determines that the requirements of this 
                section may be waived and justifies in writing 
                the reasons for such determination.
            ``(2) Modifications of contracts and subcontracts 
        for commercial items.--In the case of a modification of 
        a contract or subcontract for a commercial item that is 
        not covered by the exception to the submission of 
        certified cost or pricing data in paragraph (1)(A) or 
        (1)(B), submission of certified cost or pricing data 
        shall not be required under subsection (a) if--
                    ``(A) the contract or subcontract being 
                modified is a contract or subcontract for which 
                submission of certified cost or pricing data 
                may not be required by reason of paragraph 
                (1)(A) or (1)(B); and
                    ``(B) the modification would not change the 
                contract or subcontract, as the case may be, 
                from a contract or subcontract for the 
                acquisition of a commercial item to a contract 
                or subcontract for the acquisition of an item 
                other than a commercial item.
    ``(c) Cost or Pricing Data on Below-Threshold Contracts.--
            ``(1) Authority to require submission.--Subject to 
        paragraph (2), when certified cost or pricing data are 
        not required to be submitted by subsection (a) for a 
        contract, subcontract, or modification of a contract or 
        subcontract, such data may nevertheless be required to 
        be submitted by the head of the procuring activity, but 
        only if the head of the procuring activity determines 
        that such data are necessary for the evaluation by the 
        agency of the reasonableness of the price of the 
        contract, subcontract, or modification of a contract or 
        subcontract. In any case in which the head of the 
        procuring activity requires such data to be submitted 
        under this subsection, the head of the procuring 
        activity shall justify in writing the reason for such 
        requirement.
            ``(2) Exception.--The head of the procuring 
        activity may not require certified cost or pricing data 
        to be submitted under this paragraph for any contract 
        or subcontract, or modification of a contract or 
        subcontract, covered by the exceptions in subparagraph 
        (A) or (B) of subsection (b)(1).
            ``(3) Delegation of authority prohibited.--The head 
        of a procuring activity may not delegate functions 
        under this paragraph.
    ``(d) Submission of Other Information.--
            ``(1) Authority to require submission.--When 
        certified cost or pricing data are not required to be 
        submitted under this section for a contract, 
        subcontract, or modification of a contract or 
        subcontract, the contracting officer shall require 
        submission of data other than certified cost or pricing 
        data to the extent necessary to determine the 
        reasonableness of the price of the contract, 
        subcontract, or modification of the contract or 
        subcontract. Except in the case of a contract or 
        subcontract covered by the exceptions in subsection 
        (b)(1)(A), the data submitted shall include, at a 
        minimum, appropriate information on the prices at which 
        the same item or similar items have previously been 
        sold that is adequate for evaluating the reasonableness 
        of the price for the procurement.
            ``(2) Limitations on authority.--The Federal 
        Acquisition Regulation shall include the following 
        provisions regarding the types of information that 
        contracting officers may require under paragraph (1):
                    ``(A) Reasonable limitations on requests 
                for sales data relating to commercial items.
                    ``(B) A requirement that a contracting 
                officer limit, to the maximum extent 
                practicable, the scope of any request for 
                information relating to commercial items from 
                an offeror to only that information that is in 
                the form regularly maintained by the offeror in 
                commercial operations.
                    ``(C) A statement that any information 
                received relating to commercial items that is 
                exempt from disclosure under section 552(b) of 
                title 5 shall not be disclosed by the Federal 
                Government.''.
    (2) Section 2306a of such title is further amended--
            (A) by striking out subsection (h); and
            (B) by redesignating subsection (i) as subsection 
        (h).
    (b) Civilian Agency Acquisitions.--(1) Subsections (b), (c) 
and (d) of section 304A of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 254b) are 
amended to read as follows:
    ``(b) Exceptions.--
            ``(1) In general.--Submission of certified cost or 
        pricing data shall not be required under subsection (a) 
        in the case of a contract, a subcontract, or a 
        modification of a contract or subcontract--
                    ``(A) for which the price agreed upon is 
                based on--
                            ``(i) adequate price competition; 
                        or
                            ``(ii) prices set by law or 
                        regulation;
                    ``(B) for the acquisition of a commercial 
                item; or
                    ``(C) in an exceptional case when the head 
                of the procuring activity, without delegation, 
                determines that the requirements of this 
                section may be waived and justifies in writing 
                the reasons for such determination.
            ``(2) Modifications of contracts and subcontracts 
        for commercial items.--In the case of a modification of 
        a contract or subcontract for a commercial item that is 
        not covered by the exception to the submission of 
        certified cost or pricing data in paragraph (1)(A) or 
        (1)(B), submission of certified cost or pricing data 
        shall not be required under subsection (a) if--
                    ``(A) the contract or subcontract being 
                modified is a contract or subcontract for which 
                submission of certified cost or pricing data 
                may not be required by reason of paragraph 
                (1)(A) or (1)(B); and
                    ``(B) the modification would not change the 
                contract or subcontract, as the case may be, 
                from a contract or subcontract for the 
                acquisition of a commercial item to a contract 
                or subcontract for the acquisition of an item 
                other than a commercial item.
    ``(c) Cost or Pricing Data on Below-Threshold Contracts.--
            ``(1) Authority to require submission.--Subject to 
        paragraph (2), when certified cost or pricing data are 
        not required to be submitted by subsection (a) for a 
        contract, subcontract, or modification of a contract or 
        subcontract, such data may nevertheless be required to 
        be submitted by the head of the procuring activity, but 
        only if the head of the procuring activity determines 
        that such data are necessary for the evaluation by the 
        agency of the reasonableness of the price of the 
        contract, subcontract, or modification of a contract or 
        subcontract. In any case in which the head of the 
        procuring activity requires such data to be submitted 
        under this subsection, the head of the procuring 
        activity shall justify in writing the reason for such 
        requirement.
            ``(2) Exception.--The head of the procuring 
        activity may not require certified cost or pricing data 
        to be submitted under this paragraph for any contract 
        or subcontract, or modification of a contract or 
        subcontract, covered by the exceptions in subparagraph 
        (A) or (B) of subsection (b)(1).
            ``(3) Delegation of authority prohibited.--The head 
        of a procuring activity may not delegate the functions 
        under this paragraph.
    ``(d) Submission of Other Information.--
            ``(1) Authority to require submission.--When 
        certified cost or pricing data are not required to be 
        submitted under this section for a contract, 
        subcontract, or modification of a contract or 
        subcontract, the contracting officer shall require 
        submission of data other than certified cost or pricing 
        data to the extent necessary to determine the 
        reasonableness of the price of the contract, 
        subcontract, or modification of the contract or 
        subcontract. Except in the case of a contract or 
        subcontract covered by the exceptions in subsection 
        (b)(1)(A), the data submitted shall include, at a 
        minimum, appropriate information on the prices at which 
        the same item or similar items have previously been 
        sold that is adequate for evaluating the reasonableness 
        of the price for the procurement.
            ``(2) Limitations on authority.--The Federal 
        Acquisition Regulation shall include the following 
        provisions regarding the types of information that 
        contracting officers may require under paragraph (1):
                    ``(A) Reasonable limitations on requests 
                for sales data relating to commercial items.
                    ``(B) A requirement that a contracting 
                officer limit, to the maximum extent 
                practicable, the scope of any request for 
                information relating to commercial items from 
                an offeror to only that information that is in 
                the form regularly maintained by the offeror in 
                commercial operations.
                    ``(C) A statement that any information 
                received relating to commercial items that is 
                exempt from disclosure under section 552(b) of 
                title 5 shall not be disclosed by the Federal 
                Government.''.
    (2) Section 304A of such Act is further amended--
            (A) by striking out subsection (h); and
            (B) by redesignating subsection (i) as subsection 
        (h).

SEC. 4202. APPLICATION OF SIMPLIFIED PROCEDURES TO CERTAIN COMMERCIAL 
                    ITEMS.

    (a) Armed Services Acquisitions.--(1) Section 2304(g) of 
title 10, United States Code, is amended--
            (A) in paragraph (1), by striking out ``shall 
        provide for special simplified procedures for purchases 
        of'' and all that follows through the end of the 
        paragraph and inserting in lieu thereof the following: 
        ``shall provide for--
            ``(A) special simplified procedures for purchases 
        of property and services for amounts not greater than 
        the simplified acquisition threshold; and
            ``(B) special simplified procedures for purchases 
        of property and services for amounts greater than the 
        simplified acquisition threshold but not greater than 
        $5,000,000 with respect to which the contracting 
        officer reasonably expects, based on the nature of the 
        property or services sought and on market research, 
        that offers will include only commercial items.''; and
            (B) by adding at the end the following new 
        paragraph:
    ``(4) The head of an agency shall comply with the Federal 
Acquisition Regulation provisions referred to in section 31(g) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
427).''.
    (2) Section 2305 of title 10, United States Code, is 
amended in subsection (a)(2) by inserting after ``(other than 
for'' the following: ``a procurement for commercial items using 
special simplified procedures or''.
    (b) Civilian Agency Acquisitions.--(1) Section 303(g) of 
the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 253(g)) is amended--
            (A) in paragraph (1), by striking out ``shall 
        provide for special simplified procedures for purchases 
        of'' and all that follows through the end of the 
        paragraph and inserting in lieu thereof the following: 
        ``shall provide for--
            ``(A) special simplified procedures for purchases 
        of property and services for amounts not greater than 
        the simplified acquisition threshold; and
            ``(B) special simplified procedures for purchases 
        of property and services for amounts greater than the 
        simplified acquisition threshold but not greater than 
        $5,000,000 with respect to which the contracting 
        officer reasonably expects, based on the nature of the 
        property or services sought and on market research, 
        that offers will include only commercial items.''; and
            (B) by adding at the end the following new 
        paragraph:
    ``(5) An executive agency shall comply with the Federal 
Acquisition Regulation provisions referred to in section 31(g) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
427).''.
    (2) Section 303A of such Act (41 U.S.C. 253a) is amended in 
subsection (b) by inserting after ``(other than for'' the 
following: ``a procurement for commercial items using special 
simplified procedures or''.
    (c) Acquisitions Generally.--Section 31 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 427) is amended--
            (1) in subsection (a), by striking out ``shall 
        provide for special simplified procedures for purchases 
        of'' and all that follows through the end of the 
        subsection and inserting in lieu thereof the following: 
        ``shall provide for--
            ``(1) special simplified procedures for purchases 
        of property and services for amounts not greater than 
        the simplified acquisition threshold; and
            ``(2) special simplified procedures for purchases 
        of property and services for amounts greater than the 
        simplified acquisition threshold but not greater than 
        $5,000,000 with respect to which the contracting 
        officer reasonably expects, based on the nature of the 
        property or services sought and on market research, 
        that offers will include only commercial items.''; and
            (2) by adding at the end the following new 
        subsection:
    ``(g) Special Rules for Commercial Items.--The Federal 
Acquisition Regulation shall provide that, in the case of a 
purchase of commercial items using special simplified 
procedures, an executive agency--
            ``(1) shall publish a notice in accordance with 
        section 18 and, as provided in subsection (b)(4) of 
        such section, permit all responsible sources to submit 
        a bid, proposal, or quotation (as appropriate) which 
        shall be considered by the agency;
            ``(2) may not conduct the purchase on a sole source 
        basis unless the need to do so is justified in writing 
        and approved in accordance with section 2304 of title 
        10, United States Code, or section 303 of the Federal 
        Property and Administrative Services Act of 1949 (41 
        U.S.C. 253), as applicable; and
            ``(3) shall include in the contract file a written 
        description of the procedures used in awarding the 
        contract and the number of offers received.''.
    (d) Simplified Notice.--(1) Section 18 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 416) is amended--
            (A) in subsection (a)(6), by inserting before 
        ``submission'' the following: ``issuance of 
        solicitations and the''; and
            (B) in subsection (b)(6), by striking out 
        ``threshold--'' and inserting in lieu thereof 
        ``threshold, or a contract for the procurement of 
        commercial items using special simplified procedures--
        ''.
    (e) Effective Date.--The authority to issue solicitations 
for purchases of commercial items in excess of the simplified 
acquisition threshold pursuant to the special simplified 
procedures authorized by section 2304(g)(1) of title 10, United 
States Code, section 303(g)(1) of the Federal Property and 
Administrative Services Act of 1949, and section 31(a) of the 
Office of Federal Procurement Policy Act, as amended by this 
section, shall expire three years after the date on which such 
amendments take effect pursuant to section 4401(b). Contracts 
may be awarded pursuant to solicitations that have been 
issuedbefore such authority expires, notwithstanding the expiration of 
such authority.

SEC. 4203. INAPPLICABILITY OF CERTAIN PROCUREMENT LAWS TO COMMERCIALLY 
                    AVAILABLE OFF-THE-SHELF ITEMS.

    (a) Laws Listed in the FAR.--The Office of Federal 
Procurement Policy Act (41 U.S.C. 401) et seq.) is amended by 
adding at the end the following:

``SEC. 35. COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEM ACQUISITIONS: 
                    LISTS OF INAPPLICABLE LAWS IN FEDERAL ACQUISITION 
                    REGULATION.

    ``(a) Lists of Inapplicable Provisions of Law.--(1) The 
Federal Acquisition Regulation shall include a list of 
provisions of law that are inapplicable to contracts for the 
procurement of commercially available off-the-shelf items.
    ``(2) A provision of law that, pursuant to paragraph (3), 
is properly included on a list referred to in paragraph (1) may 
not be construed as being applicable to contracts referred to 
in paragraph (1). Nothing in this section shall be construed to 
render inapplicable to such contracts any provision of law that 
is not included on such list.
    ``(3) A provision of law described in subsection (b) shall 
be included on the list of inapplicable provisions of law 
required by paragraph (1) unless the Administrator for Federal 
Procurement Policy makes a written determination that it would 
not be in the best interest of the United States to exempt such 
contracts from the applicability of that provision of law. 
Nothing in this section shall be construed as modifying or 
superseding, or as being intended to impair or restrict 
authorities or responsibilities under--
            ``(A) section 15 of the Small Business Act (15 
        U.S.C. 644); or
            ``(B) bid protest procedures developed under the 
        authority of subchapter V of chapter 35 of title 31, 
        United States Code; subsections (e) and (f) of section 
        2305 of title 10, United States Code; or subsections 
        (h) and (i) of section 303B of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 253b).
    ``(b) Covered Law.--Except as provided in subsection 
(a)(3), the list referred to in subsection (a)(1) shall include 
each provision of law that, as determined by the Administrator, 
imposes on persons who have been awarded contracts by the 
Federal Government for the procurement of commercially 
available off-the-shelf items Government-unique policies, 
procedures, requirements, or restrictions for the procurement 
of property or services, except the following:
            ``(1) A provision of law that provides for criminal 
        or civil penalties.
            ``(2) A provision of law that specifically refers 
        to this section and provides that, notwithstanding this 
        section, such provision of law shall be applicable to 
        contracts for the procurement of commercial off-the-
        shelf items.
    ``(c) Definition.--(1) As used in this section, the term 
`commercially available off-the-shelf item' means, except as 
provided in paragraph (2), an item that--
            ``(A) is a commercial item (as described in section 
        4(12)(A));
            ``(B) is sold in substantial quantities in the 
        commercial marketplace; and
            ``(C) is offered to the Government, without 
        modification, in the same form in which it is sold in 
        the commercial marketplace.
    ``(2) The term `commercially available off-the-shelf item' 
does not include bulk cargo, as defined in section 3 of the 
Shipping Act of 1984 (46 U.S.C. App. 1702), such as 
agricultural products and petroleum products.''.
    (b) Clerical Amendment.--The table of contents in section 
1(b) of such Act is amended by inserting after the item 
relating to section 34 the following:

``Sec. 35. Commercially available off-the-shelf item acquisitions: lists 
          of inapplicable laws in Federal Acquisition Regulation.''.

SEC. 4204. AMENDMENT OF COMMERCIAL ITEMS DEFINITION.

    Section 4(12)(F) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)(F)) is amended by inserting ``or 
market'' after ``catalog''.

SEC. 4205. INAPPLICABILITY OF COST ACCOUNTING STANDARDS TO CONTRACTS 
                    AND SUBCONTRACTS FOR COMMERCIAL ITEMS.

    Paragraph (2)(B) of section 26(f) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 422(f)) is amended--
            (1) by striking out clause (i) and inserting in 
        lieu thereof the following:
            ``(i) Contracts or subcontracts for the acquisition 
        of commercial items.''; and
            (2) by striking out clause (iii).

               TITLE XLIII--ADDITIONAL REFORM PROVISIONS

          Subtitle A--Additional Acquisition Reform Provisions

SEC. 4301. ELIMINATION OF CERTAIN CERTIFICATION REQUIREMENTS.

    (a) Elimination of Certain Statutory Certification 
Requirements.--(1) Section 2410b of title 10, United States 
Code, is amended in paragraph (2) by striking out 
``certification and''.
    (2) Section 1352(b)(2) of title 31, United States Code, is 
amended--
            (A) by striking out subparagraph (C); and
            (B) by inserting ``and'' after the semicolon at the 
        end of subparagraph (A).
    (3) Section 5152 of the Drug-Free Workplace Act of 1988 (41 
U.S.C. 701) is amended--
            (A) in subsection (a)(1), by striking out ``has 
        certified to the contracting agency that it will'' and 
        inserting in lieu thereof ``agrees to'';
            (B) in subsection (a)(2), by striking out 
        ``contract includes a certification by the individual'' 
        and inserting in lieu thereof ``individual agrees''; 
        and
            (C) in subsection (b)(1)--
                    (i) by striking out subparagraph (A);
                    (ii) by redesignating subparagraph (B) as 
                subparagraph (A) and in that subparagraph by 
                striking out ``such certification by failing to 
                carry out''; and
                    (iii) by redesignating subparagraph (C) as 
                subparagraph (B).
    (b) Elimination of Certain Regulatory Certification 
Requirements.--
            (1) Current certification requirements.--(A) Not 
        later than 210 days after the date of the enactment of 
        this Act, the Administrator for Federal Procurement 
        Policy shall issue for public comment a proposal to 
        amend the Federal Acquisition Regulation to remove from 
        the Federal Acquisition Regulation certification 
        requirements for contractors and offerors that are not 
        specifically imposed by statute. The Administrator may 
        omit such a certification requirement from the proposal 
        only if--
                    (i) the Federal Acquisition Regulatory 
                Council provides the Administrator with a 
                written justification for the requirement and a 
                determination that there is no less burdensome 
                means for administering and enforcing the 
                particular regulation that contains the 
                certification requirement; and
                    (ii) the Administrator approves in writing 
                the retention of the certification requirement.
            (B)(i) Not later than 210 days after the date of 
        the enactment of this Act, the head of each executive 
        agency that has agency procurement regulations 
        containing one or more certification requirements for 
        contractors and offerors that are not specifically 
        imposed by statute shall issue for public comment a 
        proposal to amend the regulations to remove the 
        certification requirements. The head of the executive 
        agency may omit such a certification requirement from 
        the proposal only if--
                    (I) the senior procurement executive for 
                the executive agency provides the head of the 
                executive agency with a written justification 
                for the requirement and a determination that 
                there is no less burdensome means for 
                administering and enforcing the particular 
                regulation that contains the certification 
                requirement; and
                    (II) the head of the executive agency 
                approves in writing the retention of such 
                certification requirement.
            (ii) For purposes of clause (i), the term ``head of 
        the executive agency'' with respect to a military 
        department means the Secretary of Defense.
            (2) Future certification requirements.--(A) Section 
        29 of the Office of Federal Procurement Policy Act (41 
        U.S.C. 425) is amended--
                    (i) by amending the heading to read as 
                follows:

``SEC. 29. CONTRACT CLAUSES AND CERTIFICATIONS.'';

                    (ii) by inserting ``(a) Nonstandard 
                Contract Clauses.--'' before ``The Federal 
                Acquisition''; and
                    (iii) by adding at the end the following 
                new subsection:
    ``(c) Prohibition on Certification Requirements.--(1) A 
requirement for a certification by a contractor or offeror may 
not be included in the Federal Acquisition Regulation unless--
            ``(A) the certification requirement is specifically 
        imposed by statute; or
            ``(B) written justification for such certification 
        requirement is provided to the Administrator for 
        Federal Procurement Policy by the Federal Acquisition 
        Regulatory Council, and the Administrator approves in 
        writing the inclusion of such certification 
        requirement.
    ``(2)(A) A requirement for a certification by a contractor 
or offeror may not be included in a procurement regulation of 
an executive agency unless--
            ``(i) the certification requirement is specifically 
        imposed by statute; or
            ``(ii) written justification for such certification 
        requirement is provided to the head of the executive 
        agency by the senior procurement executive of the 
        agency, and the head of the executive agency approves 
        in writing the inclusion of such certification 
        requirement.
    ``(B) For purposes of subparagraph (A), the term `head of 
the executive agency' with respect to a military department 
means the Secretary of Defense.''.
            (B) The item relating to section 29 in the table of 
        contents for the Office of Federal Procurement Policy 
        Act (contained in section 1(b)) (41 U.S.C. 401 note) is 
        amended to read as follows:

``Sec. 29. Contract clauses and certifications.''.

    (c) Policy of Congress.--Section 29 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 425) is further 
amended by adding after subsection (a) the following new 
subsection:
    ``(b) Construction of Certification Requirements.--A 
provision of law may not be construed as requiring a 
certification by a contractor or offeror in a procurement made 
or to be made by the Federal Government unless that provision 
of law specifically provides that such a certification shall be 
required.''.

SEC. 4302. AUTHORITIES CONDITIONED ON FACNET CAPABILITY.

    (a) Commencement and Expiration of Authority To Conduct 
Certain Tests of Procurement Procedures.--Subsection (j) of 
section 5061 of the Federal Acquisition Streamlining Act of 
1994 (41 U.S.C. 413 note; 108 Stat. 3355) is amended to read as 
follows:
    ``(j) Commencement and Expiration of Authority.--The 
authority to conduct a test under subsection (a) in an agency 
and to award contracts under such a test shall take effect on 
January 1, 1997, and shall expire on January 1, 2001. A 
contract entered into before such authority expires in anagency 
pursuant to a test shall remain in effect, in accordance with the terms 
of the contract, the notwithstanding of expiration the authority to 
conduct the test under this section.''.
    (b) Use of Simplified Acquisition Procedures.--Subsection 
(e) of section 31 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 427) is amended--
            (1) by striking out ``Acquisition Procedures.--'' 
        and all that follows through ``(B) The simplified 
        acquisition'' in paragraph (2)(B) and inserting in lieu 
        thereof ``Acquisition Procedures.--The simplified 
        acquisition''; and
            (2) by striking out ``pursuant to this section'' in 
        the remaining text and inserting in lieu thereof 
        ``pursuant to section 2304(g)(1)(A) of title 10, United 
        States Code, section 303(g)(1)(A) of the Federal 
        Property and Administrative Services Act of 1949 (41 
        U.S.C. 253(g)(1)(A)), and subsection (a)(1) of this 
        section''.

SEC. 4303. INTERNATIONAL COMPETITIVENESS.

    (a) Additional Authority to Waive Research, Development, 
and Production Costs.--Subject to subsection (b), section 
21(e)(2) of the Arms Export Control Act (22 U.S.C. 2761(e)(2)) 
is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following new 
        subparagraphs:
    ``(B) The President may waive the charge or charges which 
would otherwise be considered appropriate under paragraph 
(1)(B) for a particular sale if the President determines that--
            ``(i) imposition of the charge or charges likely 
        would result in the loss of the sale; or
            ``(ii) in the case of a sale of major defense 
        equipment that is also being procured for the use of 
        the Armed Forces, the waiver of the charge or charges 
        would (through a resulting increase in the total 
        quantity of the equipment purchased from the source of 
        the equipment that causes a reduction in the unit cost 
        of the equipment) result in a savings to the United 
        States on the cost of the equipment procured for the 
        use of the Armed Forces that substantially offsets the 
        revenue foregone by reason of the waiver of the charge 
        or charges.
    ``(C) The President may waive, for particular sales of 
major defense equipment, any increase in a charge or charges 
previously considered appropriate under paragraph (1)(B) if the 
increase results from a correction of an estimate (reasonable 
when made) of the production quantity base that was used for 
calculating the charge or charges for purposes of such 
paragraph.''.
    (b) Conditions.--Subsection (a) shall be effective only 
if--
            (1) the President, in the budget of the President 
        for fiscal year 1997, proposes legislation that if 
        enacted would be qualifying offsetting legislation; and
            (2) there is enacted qualifying offsetting 
        legislation.
    (c) Effective Date.--If the conditions in subsection (b) 
are met, then the amendments made by subsection (a) shall take 
effect on the date of the enactment of qualifying offsetting 
legislation.
    (d) Definitions.--For purposes of this section:
            (1) The term ``qualifying offsetting legislation'' 
        means legislation that includes provisions that--
                    (A) offset fully the estimated revenues 
                lost as a result of the amendments made by 
                subsection (a) for each of the fiscal years 
                1997 through 2005;
                    (B) expressly state that they are enacted 
                for the purpose of the offset described in 
                subparagraph (A); and
                    (C) are included in full on the PayGo 
                scorecard.
            (2) The term ``PayGo scorecard'' means the 
        estimates that are made by the Director of the 
        Congressional Budget Office and the Director of the 
        Office of Management and Budget under section 252(d) of 
        the Balanced Budget and Emergency Deficit Control Act 
        of 1985.

SEC. 4304. PROCUREMENT INTEGRITY.

    (a) Amendment of Procurement Integrity Provision.--Section 
27 of the Office of Federal Procurement Policy Act (41 U.S.C. 
423) is amended to read as follows:

``SEC. 27. RESTRICTIONS ON DISCLOSING AND OBTAINING CONTRACTOR BID OR 
                    PROPOSAL INFORMATION OR SOURCE SELECTION 
                    INFORMATION.

    ``(a) Prohibition on Disclosing Procurement Information.--
(1) A person described in paragraph (2) shall not, other than 
as provided by law, knowingly disclose contractor bid or 
proposal information or source selection information before the 
award of a Federal agency procurement contract to which the 
information relates.
    ``(2) Paragraph (1) applies to any person who--
            ``(A) is a present or former official of the United 
        States, or a person who is acting or has acted for or 
        on behalf of, or who is advising or has advised the 
        United States with respect to, a Federal agency 
        procurement; and
            ``(B) by virtue of that office, employment, or 
        relationship has or had access to contractor bid or 
        proposal information or source selection information.
    ``(b) Prohibition on Obtaining Procurement Information.--A 
person shall not, other than as provided by law, knowingly 
obtain contractor bid or proposal information or source 
selection information before the award of a Federal agency 
procurement contract to which the information relates.
    ``(c) Actions Required of Procurement Officers When 
Contacted by Offerors Regarding Non-Federal Employment.--(1) If 
an agency official who is participating personally and 
substantially in a Federal agency procurement for a contract in 
excess of the simplified acquisition threshold contacts or is 
contacted by a person who is a bidder or offeror in that 
Federal agency procurement regarding possible non-Federal 
employment for that official, the official shall--
            ``(A) promptly report the contact in writing to the 
        official's supervisor and to the designated agency 
        ethics official (or designee) of the agency in which 
        the official is employed; and
            ``(B)(i) reject the possibility of non-Federal 
        employment; or
            ``(ii) disqualify himself or herself from further 
        personal and substantial participation in that Federal 
        agency procurement until such time as the agency has 
        authorized the official to resume participation in such 
        procurement, in accordance with the requirements of 
        section 208 of title 18, United States Code, and 
        applicable agency regulations on the grounds that--
                    ``(I) the person is no longer a bidder or 
                offeror in that Federal agency procurement; or
                    ``(II) all discussions with the bidder or 
                offeror regarding possible non-Federal 
                employment have terminated without an agreement 
                or arrangement for employment.
    ``(2) Each report required by this subsection shall be 
retained by the agency for not less than two years following 
the submission of the report. All such reports shall be made 
available to the public upon request, except that any part of a 
report that is exempt from the disclosure requirements of 
section 552 of title 5, United States Code, under subsection 
(b)(1) of such section may be withheld from disclosure to the 
public.
    ``(3) An official who knowingly fails to comply with the 
requirements of this subsection shall be subject to the 
penalties and administrative actions set forth in subsection 
(e).
    ``(4) A bidder or offeror who engages in employment 
discussions with an official who is subject to the restrictions 
of this subsection, knowing that the official has not complied 
with subparagraph (A) or (B) of paragraph (1), shall be subject 
to the penalties and administrative actions set forth in 
subsection (e).
    ``(d) Prohibition on Former Official's Acceptance of 
Compensation From Contractor.--(1) A former official of a 
Federal agency may not accept compensation from a contractor as 
an employee, officer, director, or consultant of the contractor 
within a period of one year after such former official--
            ``(A) served, at the time of selection of the 
        contractor or the award of a contract to that 
        contractor, as the procuring contracting officer, the 
        source selection authority, a member of the source 
        selection evaluation board, or the chief of a financial 
        or technical evaluation team in a procurement in which 
        that contractor was selected for award of a contract in 
        excess of $10,000,000;
            ``(B) served as the program manager, deputy program 
        manager, or administrative contracting officer for a 
        contract in excess of $10,000,000 awarded to that 
        contractor; or
            ``(C) personally made for the Federal agency--
                    ``(i) a decision to award a contract, 
                subcontract, modification of a contract or 
                subcontract, or a task order or delivery order 
                in excess of $10,000,000 to that contractor;
                    ``(ii) a decision to establish overhead or 
                other rates applicable to a contract or 
                contracts for that contractor that are valued 
                in excess of $10,000,000;
                    ``(iii) a decision to approve issuance of a 
                contract payment or payments in excess of 
                $10,000,000 to that contractor; or
                    ``(iv) a decision to pay or settle a claim 
                in excess of $10,000,000 with that contractor.
    ``(2) Nothing in paragraph (1) may be construed to prohibit 
a former official of a Federal agency from accepting 
compensation from any division or affiliate of a contractor 
that does not produce the same or similar products or services 
as the entity of the contractor that is responsible for the 
contract referred to in subparagraph (A), (B), or (C) of such 
paragraph.
    ``(3) A former official who knowingly accepts compensation 
in violation of this subsection shall be subject to penalties 
and administrative actions as set forth in subsection (e).
    ``(4) A contractor who provides compensation to a former 
official knowing that such compensation is accepted by the 
former official in violation of this subsection shall be 
subject to penalties and administrative actions as set forth in 
subsection (e).
    ``(5) Regulations implementing this subsection shall 
include procedures for an official or former official of a 
Federal agency to request advice from the appropriate 
designated agency ethics official regarding whether the 
official or former official is or would be precluded by this 
subsection from accepting compensation from a particular 
contractor.
    ``(e) Penalties and Administrative Actions.--
            ``(1) Criminal penalties.--Whoever engages in 
        conduct constituting a violation of subsection (a) or 
        (b) for the purpose of either--
                    ``(A) exchanging the information covered by 
                such subsection for anything of value, or
                    ``(B) obtaining or giving anyone a 
                competitive advantage in the award of a Federal 
                agency procurement contract,
        shall be imprisoned for not more than 5 years or fined 
        as provided under title 18, United States Code, or 
        both.
            ``(2) Civil penalties.--The Attorney General may 
        bring a civil action in an appropriate United States 
        district court against any person who engages in 
        conduct constituting a violation of subsection (a), 
        (b), (c), or (d). Upon proof of such conduct by a 
        preponderance of the evidence, the person is subject to 
        a civil penalty. An individual who engages in such 
        conduct is subject to a civil penalty of not more than 
        $50,000 for each violation plus twice the amount of 
        compensation which the individual received or offered 
        for the prohibited conduct. An organization that 
        engages in such conduct is subject to a civil penalty 
        of not more than $500,000 for each violation plus twice 
        the amount of compensation which the organization 
        received or offered for the prohibited conduct.
            ``(3) Administrative actions.--(A) If a Federal 
        agency receives information that a contractor or a 
        person has engaged in conduct constituting a violation 
        of subsection (a), (b), (c), or (d), the Federal agency 
        shall consider taking one or more of the following 
        actions, as appropriate:
                    ``(i) Cancellation of the Federal agency 
                procurement, if a contract has not yet been 
                awarded.
                    ``(ii) Rescission of a contract with 
                respect to which--
                            ``(I) the contractor or someone 
                        acting for the contractor has been 
                        convicted for an offense punishable 
                        under paragraph (1), or
                            ``(II) the head of the agency that 
                        awarded the contract has determined, 
                        based upon a preponderance of the 
                        evidence, that the contractor or 
                        someone acting for the contractor has 
                        engaged in conduct constituting such an 
                        offense.
                    ``(iii) Initiation of suspension or 
                debarment proceedings for the protection of the 
                Government in accordance with procedures in the 
                Federal Acquisition Regulation.
                    ``(iv) Initiation of adverse personnel 
                action, pursuant to the procedures in chapter 
                75 of title 5, United States Code, or other 
                applicable law or regulation.
            ``(B) If a Federal agency rescinds a contract 
        pursuant to subparagraph (A)(ii), the United States is 
        entitled to recover, in addition to any penalty 
        prescribed by law, the amount expended under the 
        contract.
            ``(C) For purposes of any suspension or debarment 
        proceedings initiated pursuant to subparagraph 
        (A)(iii), engaging in conduct constituting an offense 
        under subsection (a), (b), (c), or (d) affects the 
        present responsibility of a Government contractor or 
        subcontractor.
    ``(f) Definitions.--As used in this section:
            ``(1) The term `contractor bid or proposal 
        information' means any of the following information 
        submitted to a Federal agency as part of or in 
        connection with a bid or proposal to enter into a 
        Federal agency procurement contract, if that 
        information has not been previously made available to 
        the public or disclosed publicly:
                    ``(A) Cost or pricing data (as defined by 
                section 2306a(h) of title 10, United States 
                Code, with respect to procurements subject to 
                that section, and section 304A(h) of the 
                Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 254b(h)), with respect 
                to procurements subject to that section).
                    ``(B) Indirect costs and direct labor 
                rates.
                    ``(C) Proprietary information about 
                manufacturing processes, operations, or 
                techniques marked by the contractor in 
                accordance with applicable law or regulation.
                    ``(D) Information marked by the contractor 
                as `contractor bid or proposal information', in 
                accordance with applicable law or regulation.
            ``(2) The term `source selection information' means 
        any of the following information prepared for use by a 
        Federal agency for the purpose of evaluating a bid or 
        proposal to enter into a Federal agency procurement 
        contract, if that information has not been previously 
        made available to the public or disclosed publicly:
                    ``(A) Bid prices submitted in response to a 
                Federal agency solicitation for sealed bids, or 
                lists of those bid prices before public bid 
                opening.
                    ``(B) Proposed costs or prices submitted in 
                response to a Federal agency solicitation, or 
                lists of those proposed costs or prices.
                    ``(C) Source selection plans.
                    ``(D) Technical evaluation plans.
                    ``(E) Technical evaluations of proposals.
                    ``(F) Cost or price evaluations of 
                proposals.
                    ``(G) Competitive range determinations that 
                identify proposals that have a reasonable 
                chance of being selected for award of a 
                contract.
                    ``(H) Rankings of bids, proposals, or 
                competitors.
                    ``(I) The reports and evaluations of source 
                selection panels, boards, or advisory councils.
                    ``(J) Other information marked as `source 
                selection information' based on a case-by-case 
                determination by the head of the agency, his 
                designee, or the contracting officer that its 
                disclosure would jeopardize the integrity or 
                successful completion of the Federal agency 
                procurement to which the information relates.
            ``(3) The term `Federal agency' has the meaning 
        provided such term in section 3 of the Federal Property 
        and Administrative Services Act of 1949 (40 U.S.C. 
        472).
            ``(4) The term `Federal agency procurement' means 
        the acquisition (by using competitive procedures and 
        awarding a contract) of goods or services (including 
        construction) from non-Federal sources by a Federal 
        agency using appropriated funds.
            ``(5) The term `contracting officer' means a person 
        who, by appointment in accordance with applicable 
        regulations, has the authority to enter into a Federal 
        agency procurement contract on behalf of the Government 
        and to make determinations and findings with respect to 
        such a contract.
            ``(6) The term `protest' means a written objection 
        by an interested party to the award or proposed award 
        of a Federal agency procurement contract, pursuant to 
        subchapter V of chapter 35 of title 31, United States 
        Code.
            ``(7) The term `official' means the following:
                    ``(A) An officer, as defined in section 
                2104 of title 5, United States Code.
                    ``(B) An employee, as defined in section 
                2105 of title 5, United States Code.
                    ``(C) A member of the uniformed services, 
                as defined in section 2101(3) of title 5, 
                United States Code.
    ``(g) Limitation on Protests.--No person may file a protest 
against the award or proposed award of a Federal agency 
procurement contract alleging a violation of subsection (a), 
(b), (c), or (d), nor may the Comptroller General of the United 
States consider such an allegation in deciding a protest, 
unless that person reported to the Federal agency responsible 
for the procurement, no later than 14 days after the person 
first discovered the possible violation, the information that 
the person believed constitutes evidence of the offense.
    ``(h) Savings Provisions.--This section does not--
            ``(1) restrict the disclosure of information to, or 
        its receipt by, any person or class of persons 
        authorized, in accordance with applicable agency 
        regulations or procedures, to receive that information;
            ``(2) restrict a contractor from disclosing its own 
        bid or proposal information or the recipient from 
        receiving that information;
            ``(3) restrict the disclosure or receipt of 
        information relating to a Federal agency procurement 
        after it has been canceled by the Federal agency before 
        contract award unless the Federal agency plans to 
        resume the procurement;
            ``(4) prohibit individual meetings between a 
        Federal agency official and an offeror or potential 
        offeror for, or a recipient of, a contract or 
        subcontract under a Federal agency procurement, 
        provided that unauthorized disclosure or receipt of 
        contractor bid or proposal information or source 
        selection information does not occur;
            ``(5) authorize the withholding of information 
        from, nor restrict its receipt by, Congress, a 
        committee or subcommittee of Congress, the Comptroller 
        General, a Federal agency, or an inspector general of a 
        Federal agency;
            ``(6) authorize the withholding of information 
        from, nor restrict its receipt by, the Comptroller 
        General of the United States in the course of a protest 
        against the award or proposed award of a Federal agency 
        procurement contract; or
            ``(7) limit the applicability of any requirements, 
        sanctions, contract penalties, and remedies established 
        under any other law or regulation.''.
    (b) Repeals.--The following provisions of law are repealed:
            (1) Sections 2397, 2397a, 2397b, and 2397c of title 
        10, United States Code.
            (2) Section 33 of the Federal Energy Administration 
        Act of 1974 (15 U.S.C. 789).
            (3) Section 281 of title 18, United States Code.
            (4) Subsection (c) of section 32 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 428).
            (5) The first section 19 of the Federal Nonnuclear 
        Energy Research and Development Act of 1974 (42 U.S.C. 
        5918).
            (6) Part A of title VI of the Department of Energy 
        Organization Act and its catchline (42 U.S.C. 7211, 
        7212, and 7218).
            (7) Section 308 of the Energy Research and 
        Development Administration Appropriation Authorization 
        Act for Fiscal Year 1977 (42 U.S.C. 5816a).
            (8) Section 522 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6392).
    (c) Clerical Amendments.--
            (1) The table of sections at the beginning of 
        chapter 141 of title 10, United States Code, is amended 
        by striking out the items relating to sections 2397, 
        2397a, 2397b, and 2397c.
            (2) The table of sections at the beginning of 
        chapter 15 of title 18, United States Code, is amended 
        by striking out the item relating to section 281.
            (3) Section 32 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 428) is amended by redesignating 
        subsections (d), (e), (f), and (g) as subsections (c), 
        (d), (e), and (f), respectively.
            (4) The table of contents for the Department of 
        Energy Organization Act is amended by striking out the 
        items relating to part A of title VI including sections 
        601 through 603.
            (5) The table of contents for the Energy Policy and 
        Conservation Act is amended by striking out the item 
        relating to section 522.

SEC. 4305. FURTHER ACQUISITION STREAMLINING PROVISIONS.

    (a) Purpose of Office of Federal Procurement Policy.--
            (1) Revised statement of purpose.--Section 5(a) of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 
        404) is amended to read as follows:
    ``(a) There is in the Office of Management and Budget an 
Office of Federal Procurement Policy (hereinafter referred to 
as the `Office') to provide overall direction of Government-
wide procurement policies, regulations, procedures, and forms 
for executive agencies and to promote economy, efficiency, and 
effectiveness in the procurement of property and services by 
the executive branch of the Federal Government.''.
            (2) Repeal of findings, policies, and purposes.--
        Sections 2 and 3 of such Act (41 U.S.C. 401 and 402) 
        are repealed.
    (b) Repeal of Report Requirement.--Section 8 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 407) is repealed.
    (c) Obsolete Provisions.--
            (1) Relationship to former regulations.--Section 10 
        of the Office of Federal Procurement Policy Act (41 
        U.S.C. 409) is repealed.
            (2) Authorization of appropriations.--Section 11 of 
        such Act (41 U.S.C. 410) is amended to read as follows:

``SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated for the Office of 
Federal Procurement Policy each fiscal year such sums as may be 
necessary for carrying out the responsibilities of that office 
for such fiscal year.''.
    (d) Clerical Amendments.--The table of contents for the 
Office of Federal Procurement Policy Act (contained in section 
1(b)) is amended by striking out the items relating to sections 
2, 3, 8, and 10.

SEC. 4306. VALUE ENGINEERING FOR FEDERAL AGENCIES.

    (a) Use of Value Engineering.--The Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by 
section 4203, is further amended by adding at the end the 
following new section:

``SEC. 36. VALUE ENGINEERING.

    ``(a) In General.--Each executive agency shall establish 
and maintain cost-effective value engineering procedures and 
processes.
    ``(b) Definition.--As used in this section, the term `value 
engineering' means an analysis of the functions of a program, 
project, system, product, item of equipment, building, 
facility, service, or supply of an executive agency, performed 
by qualified agency or contractor personnel, directed at 
improving performance, reliability, quality, safety, and life 
cycle costs.''.
    (b) Clerical Amendment.--The table of contents for such 
Act, contained in section 1(b), is amended by adding at the end 
the following new item:

``Sec. 36. Value engineering.''.

SEC. 4307. ACQUISITION WORKFORCE.

    (a) Acquisition Workforce.--(1) The Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by 
section 4306, is further amended by adding at the end the 
following new section:

``SEC. 37. ACQUISITION WORKFORCE.

    ``(a) Applicability.--This section does not apply to an 
executive agency that is subject to chapter 87 of title 10, 
United States Code.
    ``(b) Management Policies.--
            ``(1) Policies and procedures.--The head of each 
        executive agency, after consultation with the 
        Administrator for Federal Procurement Policy, shall 
        establish policies and procedures for the effective 
        management (including accession, education, training, 
        career development, and performance incentives) of the 
        acquisition workforce of the agency. The development of 
        acquisition workforce policies under this section shall 
        be carried out consistent with the merit system 
        principles set forth in section 2301(b) of title 5, 
        United States Code.
            ``(2) Uniform implementation.--The head of each 
        executive agency shall ensure that, to the maximum 
        extent practicable, acquisition workforce policies and 
        procedures established are uniform in their 
        implementation throughout the agency.
            ``(3) Government-wide policies and evaluation.--The 
        Administrator shall issue policies to promote uniform 
        implementation of this section by executive agencies, 
        with due regard for differences in program requirements 
        among agencies that may be appropriate and warranted in 
        view of the agency mission. The Administrator shall 
        coordinate with the Deputy Director for Management of 
        the Office of Management and Budget to ensure that such 
        policies are consistent with the policies and 
        procedures established and enhanced system of 
        incentives provided pursuant to section 5051(c) of the 
        Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 
        263 note). The Administrator shall evaluate the 
        implementation of the provisions of this section by 
        executive agencies.
    ``(c) Senior Procurement Executive Authorities and 
Responsibilities.--Subject to the authority, direction, and 
control of the head of an executive agency, the senior 
procurement executive of the agency shall carry out all powers, 
functions, and duties of the head of the agency with respect to 
implementation of this section. The senior procurement 
executive shall ensure that the policies of the head of the 
executive agency established in accordance with this section 
are implemented throughout the agency.
    ``(d) Management Information Systems.--The Administrator 
shall ensure that the heads of executive agencies collect and 
maintain standardized information on the acquisition workforce 
related to implementation of this section. To the maximum 
extent practicable, such data requirements shall conform to 
standards established by the Office of Personnel Management for 
the Central Personnel Data File.
    ``(e) Applicability to Acquisition Workforce.--The programs 
established by this section shall apply to the acquisition 
workforce of each executive agency. For purposes of this 
section, the acquisition workforce of an agency consists of all 
employees serving in acquisition positions listed in subsection 
(g)(1)(A).
    ``(f) Career Development.--
            ``(1) Career paths.--The head of each executive 
        agency shall ensure that appropriate career paths for 
        personnel who desire to pursue careers in acquisition 
        are identified in terms of the education, training, 
        experience, and assignments necessary for career 
        progression to the most senior acquisition positions. 
        The head of each executive agency shall make 
        information available on such career paths.
            ``(2) Critical duties and tasks.--For each career 
        path, the head of each executive agency shall identify 
        the critical acquisition-related duties and tasks in 
        which, at minimum, employees of the agency in the 
        career path shall be competent to perform at full 
        performance grade levels. For this purpose, the head of 
        the executive agency shall provide appropriate coverage 
        of the critical duties and tasks identified by the 
        Director of the Federal Acquisition Institute.
            ``(3) Mandatory training and education.--For each 
        career path, the head of each executive agency shall 
        establish requirements for the completion of course 
        work and related on-the-job training in the critical 
        acquisition-related duties and tasks of the career 
        path. The head of each executive agency shall also 
        encourage employees to maintain the currency of their 
        acquisition knowledge and generally enhance their 
        knowledge of related acquisition management disciplines 
        through academic programs and other self-developmental 
        activities.
            ``(4) Performance incentives.--The head of each 
        executive agency shall provide for an enhanced system 
        of incentives for the encouragement of excellence in 
        the acquisition workforce which rewards performance of 
        employees that contribute to achieving the agency's 
        performance goals. The system of incentives shall 
        include provisions that--
                    ``(A) relate pay to performance (including 
                the extent to which the performance of 
                personnel in such workforce contributes to 
                achieving the cost goals, schedule goals, and 
                performance goals established for acquisition 
                programs pursuant to section 313(b) of the 
                Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 263(b))); and
                    ``(B) provide for consideration, in 
                personnel evaluations and promotion decisions, 
                of the extent to which the performance of 
                personnel in such workforce contributes to 
                achieving such cost goals, schedule goals, and 
                performance goals.
    ``(g) Qualification Requirements.--
            ``(1) In general.--(A) Subject to paragraph (2), 
        the Administrator shall establish qualification 
        requirements, including education requirements, for the 
        following positions:
                    ``(i) Entry-level positions in the General 
                Schedule Contracting series (GS-1102).
                    ``(ii) Senior positions in the General 
                Schedule Contracting series (GS-1102).
                    ``(iii) All positions in the General 
                Schedule Purchasing series (GS-1105).
                    ``(iv) Positions in other General Schedule 
                series in which significant acquisition-related 
                functions are performed.
            ``(B) Subject to paragraph (2), the Administrator 
        shall prescribe the manner and extent to which such 
        qualification requirements shall apply to any person 
        serving in a position described in subparagraph (A) at 
        the time such requirements are established.
            ``(2) Relationship to requirements applicable to 
        defense acquisition workforce.--The Administrator shall 
        establish qualification requirements and make 
        prescriptions under paragraph (1) that are comparable 
        to those established for the same or equivalent 
        positions pursuant to chapter 87 of title 10, United 
        States Code, with appropriate modifications.
            ``(3) Approval of requirements.--The Administrator 
        shall submit any requirement established or 
        prescription made under paragraph (1) to the Director 
        of the Office of Personnel Management for approval. If 
        the Director does not disapprove a requirement or 
        prescription within 30 days after the date on which the 
        Director receives it, the requirement or prescription 
        is deemed to be approved by the Director.
    ``(h) Education and Training.--
            ``(1) Funding levels.--(A) The head of an executive 
        agency shall set forth separately the funding levels 
        requested for education and training of the acquisition 
        workforce in the budget justification documents 
        submitted in support of the President's budget 
        submitted to Congress under section 1105 of title 31, 
        United States Code.
            ``(B) Funds appropriated for education and training 
        under this section may not be obligated for any other 
        purpose.
            ``(2) Tuition assistance.--The head of an executive 
        agency may provide tuition reimbursement in education 
        (including a full-time course of study leading to a 
        degree) in accordance with section 4107 of title 5, 
        United States Code, for personnel serving in 
        acquisition positions in the agency.''.
    (2) The table of contents for such Act, contained in 
section 1(b), is amended by adding at the end the following new 
item:

``Sec. 37. Acquisition workforce.''.

    (b) Additional Amendments.--Section 6(d) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 405), is amended--
            (1) by redesignating paragraphs (6), (7), (8), (9), 
        (10), (11), and (12) (as transferred by section 
        4321(h)(1)) as paragraphs (7), (8), (9), (10), (11), 
        (12), and (13), respectively;
            (2) in paragraph (5)--
                    (A) in subparagraph (A), by striking out 
                ``Government-wide career management programs 
                for a professional procurement work force'' and 
                inserting in lieu thereof ``the development of 
                a professional acquisition workforce 
                Government-wide''; and
                    (B) in subparagraph (B)--
                            (i) by striking out ``procurement 
                        by the'' and inserting in lieu thereof 
                        ``acquisition by the'';
                            (ii) by striking out ``and'' at the 
                        end of the subparagraph; and
                            (iii) by striking out subparagraph 
                        (C) and inserting in lieu thereof the 
                        following:
                    ``(C) collect data and analyze acquisition 
                workforce data from the Office of Personnel 
                Management, the heads of executive agencies, 
                and, through periodic surveys, from individual 
                employees;
                    ``(D) periodically analyze acquisition 
                career fields to identify critical 
                competencies, duties, tasks, and related 
                academic prerequisites, skills, and knowledge;
                    ``(E) coordinate and assist agencies in 
                identifying and recruiting highly qualified 
                candidates for acquisition fields;
                    ``(F) develop instructional materials for 
                acquisition personnel in coordination with 
                private and public acquisition colleges and 
                training facilities;
                    ``(G) evaluate the effectiveness of 
                training and career development programs for 
                acquisition personnel;
                    ``(H) promote the establishment and 
                utilization of academic programs by colleges 
                and universities in acquisition fields;
                    ``(I) facilitate, to the extent requested 
                by agencies, interagency intern and training 
                programs; and
                    ``(J) perform other career management or 
                research functions as directed by the 
                Administrator.''; and
            (3) by inserting before paragraph (7) (as so 
        redesignated) the following new paragraph (6):
                    ``(6) administering the provisions of 
                section 37;''.

SEC. 4308. DEMONSTRATION PROJECT RELATING TO CERTAIN PERSONNEL 
                    MANAGEMENT POLICIES AND PROCEDURES.

    (a) Commencement.--The Secretary of Defense is encouraged 
to take such steps as may be necessary to provide for the 
commencement of a demonstration project, the purpose of which 
would be to determine the feasibility or desirability of one or 
more proposals for improving the personnel management policies 
or procedures that apply with respect to the acquisition 
workforce of the Department of Defense.
    (b) Terms and Conditions.--
            (1) In general.--Except as otherwise provided in 
        this subsection, any demonstration project described in 
        subsection (a) shall be subject to section 4703 of 
        title 5, United States Code, and all other provisions 
        of such title that apply with respect to any 
        demonstration project under such section.
            (2) Exceptions.--Subject to paragraph (3), in 
        applying section 4703 of title 5, United States Code, 
        with respect to a demonstration project described in 
        subsection (a)--
                    (A) ``180 days'' in subsection (b)(4) of 
                such section shall be deemed to read ``120 
                days'';
                    (B) ``90 days'' in subsection (b)(6) of 
                such section shall be deemed to read ``30 
                days''; and
                    (C) subsection (d)(1)(A) of such section 
                shall be disregarded.
            (3) Condition.--Paragraph (2) shall not apply with 
        respect to a demonstration project unless it--
                    (A) involves only the acquisition workforce 
                of the Department of Defense (or any part 
                thereof); and
                    (B) commences during the 3-year period 
                beginning on the date of the enactment of this 
                Act.
    (c) Definition.--For purposes of this section, the term 
``acquisition workforce'' refers to the persons serving in 
acquisition positions within the Department of Defense, as 
designated pursuant to section 1721(a) of title 10, United 
States Code.

SEC. 4309. COOPERATIVE PURCHASING.

    (a) Delay in Opening Certain Federal Supply Schedules To 
Use by State, Local, and Indian Tribal Governments.--The 
Administrator of General Services may not use the authority of 
section 201(b)(2) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 481(b)(2)) to provide for the 
use of Federal supply schedules of the General Services 
Administration until after the later of--
            (1) the date on which the 18-month period beginning 
        on the date of the enactment of this Act expires; or
            (2) the date on which all of the following 
        conditions are met:
                    (A) The Administrator has considered the 
                report of the Comptroller General required by 
                subsection (b).
                    (B) The Administrator has submitted 
                comments on such report to Congress as required 
                by subsection (c).
                    (C) A period of 30 days after the date of 
                submission of such comments to Congress has 
                expired.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Administrator of General Services and to Congress a report 
on the implementation of section 201(b) of the Federal Property 
and Administrative Services Act of 1949. The report shall 
include the following:
            (1) An assessment of the effect on industry, 
        including small businesses and local dealers, of 
        providing for the use of Federal supply schedules by 
        the entities described in section 201(b)(2)(A) of the 
        Federal Property and Administrative Services Act of 
        1949.
            (2) An assessment of the effect on such entities of 
        providing for the use of Federal supply schedules by 
        them.
    (c) Comments on Report by Administrator.--Not later than 30 
days after receiving the report of the Comptroller General 
required by subsection (b), the Administrator of General 
Services shall submit to Congress comments on the report, 
including the Administrator's comments on whether the 
Administrator plans to provide any Federal supply schedule for 
the use of any entity described in section 201(b)(2)(A) of the 
Federal Property and Administrative Services Act of 1949.
    (d) Calculation of 30-Day Period.--For purposes of 
subsection (a)(2)(C), the calculation of the 30-day period 
shall exclude Saturdays, Sundays, and holidays, and any day on 
which neither House of Congress is in session because of an 
adjournment sine die, a recess of more than 3 days, or an 
adjournment of more than 3 days.

SEC. 4310. PROCUREMENT NOTICE TECHNICAL AMENDMENT.

    Section 18(c)(1)(E) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 416(c)(1)(E)) is amended by inserting 
after ``requirements contract'' the following: ``, a task order 
contract, or a delivery order contract''.

SEC. 4311. MICRO-PURCHASES WITHOUT COMPETITIVE QUOTATIONS.

    Section 32(c) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 428), as redesignated by section 4304(c)(3), is 
amended by striking out ``the contracting officer'' and 
inserting in lieu thereof ``an employee of an executive agency 
or a member of the Armed Forces of the United States authorized 
to do so''.

                    Subtitle B--Technical Amendments

SEC. 4321. AMENDMENTS RELATED TO FEDERAL ACQUISITION STREAMLINING ACT 
                    OF 1994.

    (a) Public Law 103-355.--Effective as of October 13, 1994, 
and as if included therein as enacted, the Federal Acquisition 
Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 3243 et 
seq.) is amended as follows:
            (1) Section 1073 (108 Stat. 3271) is amended by 
        striking out ``section 303I'' and inserting in lieu 
        thereof ``section 303K''.
            (2) Section 1202(a) (108 Stat. 3274) is amended by 
        striking out the closing quotation marks and second 
        period at the end of paragraph (2)(B) of the subsection 
        inserted by the amendment made by that section.
            (3) Section 1251(b) (108 Stat. 3284) is amended by 
        striking out ``Office of Federal Procurement Policy 
        Act'' and inserting in lieu thereof ``Federal Property 
        and Administrative Services Act of 1949''.
            (4) Section 2051(e) (108 Stat. 3304) is amended by 
        striking out the closing quotation marks and second 
        period at the end of subsection (f)(3) in the matter 
        inserted by the amendment made by that section.
            (5) Section 2101(a)(6)(B)(ii) (108 Stat. 3308) is 
        amended by replacing ``regulation'' with 
        ``regulations'' in the first quoted matter.
            (6) Section 2351(a) (108 Stat. 3322) is amended by 
        inserting ``(1)'' before ``Section 6''.
            (7) The heading of section 2352(b) (108 Stat. 3322) 
        is amended by striking out ``Procedures to Small 
        Business Government Contractors.--'' and inserting in 
        lieu thereof ``Procedures.--''.
            (8) Section 3022 (108 Stat. 3333) is amended by 
        striking out ``each place'' and all that follows 
        through the end of the section and inserting in lieu 
        thereof ``in paragraph (1) and `, rent,' after `sell' 
        in paragraph (2).''.
            (9) Section 5092(b) (108 Stat. 3362) is amended by 
        inserting ``of paragraph (2)'' after ``second 
        sentence''.
            (10) Section 6005(a) (108 Stat. 3364) is amended by 
        striking out the closing quotation marks and second 
        period at the end of subsection (e)(2) of the matter 
        inserted by the amendment made by that section.
            (11) Section 10005(f)(4) (108 Stat. 3409) is 
        amended in the second matter in quotation marks by 
        striking out `` `Sec. 5. This Act'' and inserting in 
        lieu thereof `` `Sec. 7. This title''.
    (b) Title 10, United States Code.--Title 10, United States 
Code, is amended as follows:
            (1) Section 2220(b) is amended by striking out 
        ``the date of the enactment of the Federal Acquisition 
        Streamlining Act of 1994'' and inserting in lieu 
        thereof ``October 13, 1994''.
            (2)(A) The section 2247 added by section 7202(a)(1) 
        of Public Law 103-355 (108 Stat. 3379) is redesignated 
        as section 2249.
            (B) The item relating to that section in the table 
        of sections at the beginning of subchapter I of chapter 
        134 is revised to conform to the redesignation made by 
        subparagraph (A).
            (3) Section 2302(3)(K) is amended by adding a 
        period at the end.
            (4) Section 2304(f)(2)(D) is amended by striking 
        out ``the Act of June 25, 1938 (41 U.S.C. 46 et seq.), 
        popularly referred to as the Wagner-O'Day Act,'' and 
        inserting in lieu thereof ``the Javits-Wagner-O'Day Act 
        (41 U.S.C. 46 et seq.),''.
            (5) Section 2304(h) is amended by striking out 
        paragraph (1) and inserting in lieu thereof the 
        following:
            ``(1) The Walsh-Healey Act (41 U.S.C. 35 et 
        seq.).''.
            (6)(A) The section 2304a added by section 848(a)(1) 
        of Public Law 103-160 (107 Stat. 1724) is redesignated 
        as section 2304e.
            (B) The item relating to that section in the table 
        of sections at the beginning of chapter 137 is revised 
        to conform to the redesignation made by subparagraph 
        (A).
            (7) Section 2306a is amended--
                    (A) in subsection (d)(2)(A)(ii), by 
                inserting ``to'' after ``The information 
                referred'';
                    (B) in subsection (e)(4)(B)(ii), by 
                striking out the second comma after 
                ``parties''; and
                    (C) in subsection (i)(3), by inserting 
                ``(41 U.S.C. 403(12))'' before the period at 
                the end.
            (8) Section 2323 is amended--
                    (A) in subsection (a)(1)(C), by inserting a 
                closing parenthesis after ``1135d-5(3))'' and 
                after ``1059c(b)(1))'';
                    (B) in subsection (a)(3), by striking out 
                ``(issued under'' and all that follows through 
                ``421(c))'';
                    (C) in subsection (b), by inserting ``(1)'' 
                after ``Amount.--''; and
                    (D) in subsection (i)(3), by adding at the 
                end a subparagraph (D) identical to the 
                subparagraph (D) set forth in the amendment 
                made by section 811(e) of Public Law 103-160 
                (107 Stat. 1702).
            (9) Section 2324 is amended--
                    (A) in subsection (e)(2)(C)--
                            (i) by striking out ``awarding the 
                        contract'' at the end of the first 
                        sentence; and
                            (ii) by striking out ``title III'' 
                        and all that follows through ``Act)'' 
                        and inserting in lieu thereof ``the Buy 
                        American Act (41 U.S.C. 10b-1)''; and
                    (B) in subsection (h)(2), by inserting 
                ``the head of the agency or'' after ``in the 
                case of any contract if''.
            (10) Section 2350b is amended--
                    (A) in subsection (c)(1)--
                            (i) by striking out 
                        ``specifically--'' and inserting in 
                        lieu thereof ``specifically 
                        prescribes--''; and
                            (ii) by striking out ``prescribe'' 
                        in each of subparagraphs (A), (B), (C), 
                        and (D); and
                    (B) in subsection (d)(1), by striking out 
                ``subcontract to be'' and inserting in lieu 
                thereof ``subcontract be''.
            (11) Section 2372(i)(1) is amended by striking out 
        ``section 2324(m)'' and inserting in lieu thereof 
        ``section 2324(l)''.
            (12) Section 2384(b) is amended--
                    (A) in paragraph (2)--
                            (i) by striking ``items, as'' and 
                        inserting in lieu thereof ``items 
                        (as''; and
                            (ii) by inserting a closing 
                        parenthesis after ``403(12))''; and
                    (B) in paragraph (3), by inserting a 
                closing parenthesis after ``403(11))''.
            (13) Section 2400(a)(5) is amended by striking out 
        ``the preceding sentence'' and inserting in lieu 
        thereof ``this paragraph''.
            (14) Section 2405 is amended--
                    (A) in paragraphs (1) and (2) of subsection 
                (a), by striking out ``the date of the 
                enactment of the Federal Acquisition 
                Streamlining Act of 1994'' and inserting in 
                lieu thereof ``October 13, 1994''; and
                    (B) in subsection (c)(3)--
                            (i) by striking out ``the later 
                        of--'' and all that follows through 
                        ``(B)''; and
                            (ii) by redesignating clauses (i), 
                        (ii), and (iii) as subparagraphs (A), 
                        (B), and (C), respectively, and 
                        realigning those subparagraphs 
                        accordingly.
            (15) Section 2410d(b) is amended by striking out 
        paragraph (3).
            (16) Section 2410g(d)(1) is amended by inserting 
        before the period at the end the following: ``(as 
        defined in section 4(12) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403(12)))''.
            (17) Section 2424(c) is amended--
                    (A) by inserting ``Exception.--'' after 
                ``(c)''; and
                    (B) by striking out ``drink'' the first and 
                third places it appears in the second sentence 
                and inserting in lieu thereof ``beverage''.
            (18) Section 2431 is amended--
                    (A) in subsection (b)--
                            (i) by striking out ``Any report'' 
                        in the first sentence and inserting in 
                        lieu thereof ``Any documents''; and
                            (ii) by striking out ``the report'' 
                        in paragraph (3) and inserting in lieu 
                        thereof ``the documents''; and
                    (B) in subsection (c), by striking 
                ``reporting'' and inserting in lieu thereof 
                ``documentation''.
            (19) Section 2461(e)(1) is amended by striking out 
        ``the Act of June 25, 1938 (41 U.S.C. 47), popularly 
        referred to as the Wagner-O'Day Act'' and inserting in 
        lieu thereof ``the Javits-Wagner-O'Day Act (41 U.S.C. 
        47)''.
            (20) Section 2533(a) is amended by striking out 
        ``title III of the Act'' and all that follows through 
        ``such Act'' and inserting in lieu thereof ``the Buy 
        American Act (41 U.S.C. 10a)) whether application of 
        such Act''.
            (21) Section 2662(b) is amended by striking out 
        ``small purchase threshold'' and inserting in lieu 
        thereof ``simplified acquisition threshold''.
            (22) Section 2701(i)(1) is amended--
                    (A) by striking out ``Act of August 24, 
                1935 (40 U.S.C. 270a-270d), commonly referred 
                to as the `Miller Act','' and inserting in lieu 
                thereof ``Miller Act (40 U.S.C. 270a et 
                seq.)''; and
                    (B) by striking out ``such Act of August 
                24, 1935'' and inserting in lieu thereof ``the 
                Miller Act''.
    (c) Small Business Act.--The Small Business Act (15 U.S.C. 
632 et seq.) is amended as follows:
            (1) Section 8(d) (15 U.S.C. 637(d)) is amended--
                    (A) in paragraph (1), by striking out the 
                second comma after ``small business concerns'' 
                the first place it appears; and
                    (B) in paragraph (6)(C), by striking out 
                ``and small business concerns owned and 
                controlled by the socially and economically 
                disadvantaged individuals'' and inserting in 
                lieu thereof ``, small business concerns owned 
                and controlled by socially and economically 
                disadvantaged individuals, and small business 
                concerns owned and controlled by women''.
            (2) Section 8(f) (15 U.S.C. 637(f)) is amended by 
        inserting ``and'' after the semicolon at the end of 
        paragraph (5).
            (3) Section 15(g)(2) (15 U.S.C. 644(g)(2)) is 
        amended by striking out the second comma after the 
        first appearance of ``small business concerns''.
    (d) Title 31, United States Code.--Title 31, United States 
Code, is amended as follows:
            (1) Section 3551 is amended--
                    (A) by striking out ``subchapter--'' and 
                inserting in lieu thereof ``subchapter:''; and
                    (B) in paragraph (2), by striking out ``or 
                proposed contract'' and inserting in lieu 
                thereof ``or a solicitation or other request 
                for offers''.
            (2) Section 3553(b)(3) is amended by striking out 
        ``3554(a)(3)'' and inserting in lieu thereof 
        ``3554(a)(4)''.
            (3) Section 3554(b)(2) is amended by striking out 
        ``section 3553(d)(2)(A)(i)'' and inserting in lieu 
        thereof ``section 3553(d)(3)(C)(i)(I)''.
    (e) Federal Property and Administrative Services Act of 
1949.--The Federal Property and Administrative Services Act of 
1949 is amended as follows:
            (1) The table of contents in section 1 (40 U.S.C. 
        471 prec.) is amended--
                    (A) by striking out the item relating to 
                section 104;
                    (B) by striking out the item relating to 
                section 201 and inserting in lieu thereof the 
                following:

``Sec. 201. Procurements, warehousing, and related activities.'';

                    (C) by inserting after the item relating to 
                section 315 the following new item:

``Sec. 316. Merit-based award of grants for research and development.'';

                    (D) by striking out the item relating to 
                section 603 and inserting in lieu thereof the 
                following:

``Sec. 603. Authorizations for appropriations and transfer authority.'';

                and
                    (E) by inserting after the item relating to 
                section 605 the following new item:

``Sec. 606. Sex discrimination.''.

            (2) Section 303(f)(2)(D) (41 U.S.C. 253(f)(2)(D)) 
        is amended by striking out ``the Act of June 25, 1938 
        (41 U.S.C. 46 et seq.), popularly referred to as the 
        Wagner-O'Day Act,'' and inserting in lieu thereof ``the 
        Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.),''.
            (3) The heading for paragraph (1) of section 
        304A(c) (41 U.S.C. 254b(c)) is amended by changing each 
        letter that is capitalized (other than the first letter 
        of the first word) to lower case.
            (4) Subsection (d)(2)(A)(ii) of section 304A (41 
        U.S.C. 254b) is amended by inserting ``to'' after ``The 
        information referred''.
            (5) Section 304C(a)(2) is amended by striking out 
        ``section 304B'' and inserting in lieu thereof 
        ``section 304A''.
            (6) Section 307(b) is amended by striking out 
        ``section 305(c)'' and inserting in lieu thereof 
        ``section 305(d)''.
            (7) The heading for section 314A (41 U.S.C. 264a) 
        is amended to read as follows:

``SEC. 314A. DEFINITIONS RELATING TO PROCUREMENT OF COMMERCIAL 
                    ITEMS.''.

            (8) Section 315(b) (41 U.S.C. 265(b)) is amended by 
        striking out ``inspector general'' both places it 
        appears and inserting in lieu thereof ``Inspector 
        General''.
            (9) The heading for section 316 (41 U.S.C. 266) is 
        amended by inserting at the end a period.
    (f) Walsh-Healey Act.--
            (1) The Walsh-Healey Act (41 U.S.C. 35 et seq.) is 
        amended--
                    (A) by transferring the second section 11 
                (as added by section 7201(4) of Public Law 103-
                355) so as to appear after section 10; and
                    (B) by redesignating the three sections 
                following such section 11 (as so transferred) 
                as sections 12, 13, and 14.
            (2) Such Act is further amended in section 10--
                    (A) in subsection (b), by striking out 
                ``section 1(b)'' and inserting in lieu thereof 
                ``section 1(a)''; and
                    (B) in subsection (c), by striking out the 
                comma after `` `locality' ''.
    (g) Anti-Kickback Act of 1986.--Section 7(d) of the Anti-
Kickback Act of 1986 (41 U.S.C. 57(d)) is amended--
            (1) by striking out ``such Act'' and inserting in 
        lieu thereof ``the Office of Federal Procurement Policy 
        Act''; and
            (2) by striking out the second period at the end.
    (h) Office of Federal Procurement Policy Act.--The Office 
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is 
amended as follows:
            (1) Section 6 (41 U.S.C. 405) is amended by 
        transferring paragraph (12) of subsection (d) (as such 
        paragraph was redesignated by section 5091(2) of the 
        Federal Acquisition Streamlining Act of 1994 (P.L. 103-
        355; 108 Stat. 3361)) to the end of that subsection.
            (2) Section 6(11) (41 U.S.C. 405(11)) is amended by 
        striking out ``small business'' and inserting in lieu 
        thereof ``small businesses''.
            (3) Section 18(b) (41 U.S.C. 416(b)) is amended by 
        inserting ``and'' after the semicolon at the end of 
        paragraph (5).
            (4) Section 26(f)(3) (41 U.S.C. 422(f)(3)) is 
        amended in the first sentence by striking out ``Not 
        later than 180 days after the date of enactment of this 
        section, the Administrator'' and inserting in lieu 
        thereof ``The Administrator''.
    (i) Other Laws.--
            (1) The National Defense Authorization Act for 
        Fiscal Year 1994 (Public Law 103-160) is amended as 
        follows:
                    (A) Section 126(c) (107 Stat. 1567) is 
                amended by striking out ``section 2401 of title 
                10, United States Code, or section 9081 of the 
                Department of Defense Appropriations Act, 1990 
                (10 U.S.C. 2401 note).'' and inserting in lieu 
                thereof ``section 2401 or 2401a of title 10, 
                United States Code.''.
                    (B) Section 127 (107 Stat. 1568) is 
                amended--
                            (i) in subsection (a), by striking 
                        out ``section 2401 of title 10, United 
                        States Code, or section 9081 of the 
                        Department of Defense Appropriations 
                        Act, 1990 (10 U.S.C. 2401 note).'' and 
                        inserting in lieu thereof ``section 
                        2401 or 2401a of title 10, United 
                        States Code.''; and
                            (ii) in subsection (e), by striking 
                        out ``section 9081 of the Department of 
                        Defense Appropriations Act, 1990 (10 
                        U.S.C. 2401 note).'' and inserting in 
                        lieu thereof ``section 2401a of title 
                        10, United States Code.''.
            (2) The National Defense Authorization Act for 
        Fiscal Years 1990 and 1991 (Public Law 101-189) is 
        amended by striking out section 824.
            (3) Section 117 of the National Defense 
        Authorization Act, Fiscal Year 1989 (Public Law 100-
        456; 10 U.S.C. 2431 note) is amended by striking out 
        subsection (c).
            (4) The National Defense Authorization Act for 
        Fiscal Years 1988 and 1989 (Public Law 100-180) is 
        amended by striking out section 825 (10 U.S.C. 2432 
        note).
            (5) Section 11 of Public Law 101-552 (5 U.S.C. 581 
        note) is amended by inserting ``under'' before ``the 
        amendments made by this Act''.
            (6) The last sentence of section 6 of the Federal 
        Power Act (16 U.S.C. 799) is repealed.
            (7) Section 101(a)(11)(A) of the Rehabilitation Act 
        of 1973 (29 U.S.C. 721(a)(11)(A)) is amended by 
        striking out ``the Act entitled `An Act to create a 
        Committee on Purchases of Blind-made Products, and for 
        other purposes', approved June 25, 1938 (commonly known 
        as the Wagner-O'Day Act; 41 U.S.C. 46 et seq.)'' and 
        inserting in lieu thereof ``the Javits-Wagner-O'Day Act 
        (41 U.S.C. 46 et seq.)''.
            (8) The first section 5 of the Miller Act (40 
        U.S.C. 270a note) is redesignated as section 7 and, as 
        so redesignated, is transferred to the end of that Act.
            (9) Section 3737(g) of the Revised Statutes of the 
        United States (41 U.S.C. 15(g)) is amended by striking 
        out ``rights of obligations'' and inserting in lieu 
        thereof ``rights or obligations''.
            (10) The Act of June 15, 1940 (41 U.S.C. 20a; 
        Chapter 367; 54 Stat. 398), is repealed.
            (11) The Act of November 28, 1943 (41 U.S.C. 20b; 
        Chapter 328; 57 Stat. 592), is repealed.
            (12) Section 3741 of the Revised Statutes of the 
        United States (41 U.S.C. 22), as amended by section 
        6004 of Public Law 103-355 (108 Stat. 3364), is amended 
        by striking out ``No member'' and inserting in lieu 
        thereof ``Sec. 3741. No Member''.
            (13) Section 5152(a)(1) of the Drug-Free Workplace 
        Act of 1988 (41 U.S.C. 701(a)(1)) is amended by 
        striking out ``as defined in section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403)'' and 
        inserting in lieu thereof ``(as defined in section 
        4(12) of such Act (41 U.S.C. 403(12)))''.

SEC. 4322. MISCELLANEOUS AMENDMENTS TO FEDERAL ACQUISITION LAWS.

    (a) Office of Federal Procurement Policy Act.--The Office 
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is 
amended as follows:
            (1) Section 6(b) (41 U.S.C. 405(b)) is amended by 
        striking out the second comma after ``under subsection 
        (a)'' in the first sentence.
            (2) Section 25(b)(2) (41 U.S.C. 421(b)(2)) is 
        amended by striking out ``Under Secretary of Defense 
        for Acquisition'' and inserting in lieu thereof ``Under 
        Secretary of Defense for Acquisition and Technology''.
    (b) Other Laws.--
            (1) Section 11(2) of the Inspector General Act of 
        1978 (5 U.S.C. App.) is amended by striking out the 
        second comma after ``Community Service''.
            (2) Section 908(e) of the Defense Acquisition 
        Improvement Act of 1986 (10 U.S.C. 2326 note) is 
        amended by striking out ``section 2325(g)'' and 
        inserting in lieu thereof ``section 2326(g)''.
            (3) Effective as of August 9, 1989, and as if 
        included therein as enacted, Public Law 101-73 is 
        amended in section 501(b)(1)(A) (103 Stat. 393) by 
        striking out ``be,'' and inserting in lieu thereof 
        ``be;'' in the second quoted matter therein.
            (4) Section 3732(a) of the Revised Statutes of the 
        United States (41 U.S.C. 11(a)) is amended by striking 
        out the second comma after ``quarters''.
            (5) Section 2 of the Contract Disputes Act of 1978 
        (41 U.S.C. 601) is amended in paragraphs (3), (5), (6), 
        and (7), by striking out ``The'' and inserting in lieu 
        thereof ``the''.
            (6) Section 6 of the Contract Disputes Act of 1978 
        (41 U.S.C. 605) is amended in subsections (d) and (e) 
        by inserting after ``United States Code'' each place it 
        appears the following: ``(as in effect on September 30, 
        1995)''.
            (7) Section 13 of the Contract Disputes Act of 1978 
        (41 U.S.C. 612) is amended--
                    (A) in subsection (a), by striking out 
                ``section 1302 of the Act of July 27, 1956, (70 
                Stat. 694, as amended; 31 U.S.C. 724a)'' and 
                inserting in lieu thereof ``section 1304 of 
                title 31, United States Code''; and
                    (B) in subsection (c), by striking out 
                ``section 1302 of the Act of July 27, 1956, (70 
                Stat. 694, as amended; 31 U.S.C. 724a)'' and 
                inserting in lieu thereof ``section 1304 of 
                title 31, United States Code,''.

             TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

SEC. 4401. EFFECTIVE DATE AND APPLICABILITY.

    (a) Effective Date.--Except as otherwise provided in this 
division, this division and the amendments made by this 
division shall take effect on the date of the enactment of this 
Act.
    (b) Applicability of Amendments.--
            (1) Solicitations, unsolicited proposals, and 
        related contracts.--An amendment made by this division 
        shall apply, in the manner prescribed in the final 
        regulations promulgated pursuant to section 4402 to 
        implement such amendment, with respect to any 
        solicitation that is issued, any unsolicited proposal 
        that is received, and any contract entered into 
        pursuant to such a solicitation or proposal, on or 
        after the date described in paragraph (3).
            (2) Other matters.--An amendment made by this 
        division shall also apply, to the extent and in the 
        manner prescribed in the final regulations promulgated 
        pursuant to section 4402 to implement such amendment, 
        with respect to any matter related to--
                    (A) a contract that is in effect on the 
                date described in paragraph (3);
                    (B) an offer under consideration on the 
                date described in paragraph (3); or
                    (C) any other proceeding or action that is 
                ongoing on the date described in paragraph (3).
            (3) Demarcation date.--The date referred to in 
        paragraphs (1) and (2) is the date specified in such 
        final regulations. The date so specified shall be 
        January 1, 1997, or any earlier date that is not within 
        30 days after the date on which such final regulations 
        are published.

SEC. 4402. IMPLEMENTING REGULATIONS.

    (a) Proposed Revisions.--Proposed revisions to the Federal 
Acquisition Regulation and such other proposed regulations (or 
revisions to existing regulations) as may be necessary to 
implement this Act shall be published in the Federal Register 
not later than 210 days after the date of the enactment of this 
Act.
    (b) Public Comment.--The proposed regulations described in 
subsection (a) shall be made available for public comment for a 
period of not less than 60 days.
    (c) Final Regulations.--Final regulations shall be 
published in the Federal Register not later than 330 days after 
the date of enactment of this Act.
    (d) Modifications.--Final regulations promulgated pursuant 
to this section to implement an amendment made by this Act may 
provide for modification of an existing contract without 
consideration upon the request of the contractor.
    (e) Savings Provisions.--
            (1) Validity of prior actions.--Nothing in this 
        division shall be construed to affect the validity of 
        any action taken or any contract entered into before 
        the date specified in the regulations pursuant to 
        section 4401(b)(3) except to the extent and in the 
        manner prescribed in such regulations.
            (2) Renegotiation and modification of preexisting 
        contracts.--Except as specifically provided in this 
        division, nothing in this division shall be construed 
        to require the renegotiation or modification of 
        contracts in existence on the date of the enactment of 
        this Act.
            (3) Continued applicability of preexisting law.--
        Except as otherwise provided in this division, a law 
        amended by this division shall continue to be applied 
        according to the provisions thereof as such law was in 
        effect on the day before the date of the enactment of 
        this Act until--
                    (A) the date specified in final regulations 
                implementing the amendment of that law (as 
                promulgated pursuant to this section); or
                    (B) if no such date is specified in 
                regulations, January 1, 1997.

          DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

SEC. 5001. SHORT TITLE.

    This division may be cited as the ``Information Technology 
Management Reform Act of 1996''.

SEC. 5002. DEFINITIONS.

    In this division:
            (1) Director.--The term ``Director'' means the 
        Director of the Office of Management and Budget.
            (2) Executive agency.--The term ``executive 
        agency'' has the meaning given that term in section 
        4(1) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403(1)).
            (3) Information technology.--(A) The term 
        ``information technology'', with respect to an 
        executive agency means any equipment or interconnected 
        system or subsystem of equipment, that is used in the 
        automatic acquisition, storage, manipulation, 
        management, movement, control, display, switching, 
        interchange, transmission, or reception of data or 
        information by the executive agency. For purposes of 
        the preceding sentence, equipment is used by an 
        executive agency if the equipment is used by the 
        executive agency directly or is used by a contractor 
        under a contract with the executive agency which (i) 
        requires the use of such equipment, or (ii) requires 
        the use, to a significant extent, of such equipment in 
        the performance of a service or the furnishing of a 
        product.
            (B) The term ``information technology'' includes 
        computers, ancillary equipment, software, firmware and 
        similar procedures, services (including support 
        services), and related resources.
            (C) Notwithstanding subparagraphs (A) and (B), the 
        term ``information technology'' does not include any 
        equipment that is acquired by a Federal contractor 
        incidental to a Federal contract.
            (4) Information resources.--The term ``information 
        resources'' has the meaning given such term in section 
        3502(6) of title 44, United States Code.
            (5) Information resources management.--The term 
        ``information resources management'' has the meaning 
        given such term in section 3502(7) of title 44, United 
        States Code.
            (6) Information system.--The term ``information 
        system'' has the meaning given such term in section 
        3502(8) of title 44, United States Code.
            (7) Commercial item.--The term ``commercial item'' 
        has the meaning given that term in section 4(12) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 
        403(12)).

  TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                     Subtitle A--General Authority

SEC. 5101. REPEAL OF CENTRAL AUTHORITY OF THE ADMINISTRATOR OF GENERAL 
                    SERVICES.

    Section 111 of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759) is repealed.

      Subtitle B--Director of the Office of Management and Budget

SEC. 5111. RESPONSIBILITY OF DIRECTOR.

    In fulfilling the responsibility to administer the 
functions assigned under chapter 35 of title 44, United States 
Code, the Director shall comply with this title with respect to 
the specific matters covered by this title.

SEC. 5112. CAPITAL PLANNING AND INVESTMENT CONTROL.

    (a) Federal Information Technology.--The Director shall 
perform the responsibilities set forth in this section in 
fulfilling the responsibilities under section 3504(h) of title 
44, United States Code.
    (b) Use of Information Technology in Federal Programs.--The 
Director shall promote and be responsible for improving the 
acquisition, use, and disposal of information technology by the 
Federal Government to improve the productivity, efficiency, and 
effectiveness of Federal programs, including through 
dissemination of public information and the reduction of 
information collection burdens on the public.
    (c) Use of Budget Process.--The Director shall develop, as 
part of the budget process, a process for analyzing, tracking, 
and evaluating the risks and results of all major capital 
investments made by an executive agency for information 
systems. The process shall cover the life of each system and 
shall include explicit criteria for analyzing the projected and 
actual costs, benefits, and risks associated with the 
investments. At the same time that the President submits the 
budget for a fiscal year to Congress under section 1105(a) of 
title 31, United States Code, the Director shall submit to 
Congress a report on the net program performance benefits 
achieved as a result of major capital investments made by 
executive agencies in information systems and how the benefits 
relate to the accomplishment of the goals of the executive 
agencies.
    (d) Information Technology Standards.--The Director shall 
oversee the development and implementation of standards and 
guidelines pertaining to Federal computer systems by the 
Secretary of Commerce through the National Institute of 
Standards and Technology under section 5131 and section 20 of 
the National Institute of Standards and Technology Act (15 
U.S.C. 278g-3).
    (e) Designation of Executive Agents for Acquisitions.--The 
Director shall designate (as the Director considers 
appropriate) one or more heads of executive agencies as 
executive agent for Government-wide acquisitions of information 
technology.
    (f) Use of Best Practices in Acquisitions.--The Director 
shall encourage the heads of the executive agencies to develop 
and use the best practices in the acquisition of information 
technology.
    (g) Assessment of Other Models for Managing Information 
Technology.--The Director shall assess, on a continuing basis, 
the experiences of executive agencies, State and local 
governments, international organizations, and the private 
sector in managing information technology.
    (h) Comparison of Agency Uses of Information Technology.--
The Director shall compare the performances of the executive 
agencies in using information technology and shall disseminate 
the comparisons to the heads of the executive agencies.
    (i) Training.--The Director shall monitor the development 
and implementation of training in information resources 
management for executive agency personnel.
    (j) Informing Congress.--The Director shall keep Congress 
fully informed on the extent to which the executive agencies 
are improving the performance of agency programs and the 
accomplishment of agency missions through the use of the best 
practices in information resources management.
    (k) Procurement Policy and Acquisitions of Information 
Technology.--The Director shall coordinate the development and 
review by the Administrator of the Office of Information and 
Regulatory Affairs of policy associated with Federal 
acquisition of information technology with the Office of 
Federal Procurement Policy.

SEC. 5113. PERFORMANCE-BASED AND RESULTS-BASED MANAGEMENT.

    (a) In General.--The Director shall encourage the use of 
performance-based and results-based management in fulfilling 
the responsibilities assigned under section 3504(h), of title 
44, United States Code.
    (b) Evaluation of Agency Programs and Investments.--
            (1) Requirement.--The Director shall evaluate the 
        information resources management practices of the 
        executive agencies with respect to the performance and 
        results of the investments made by the executive 
        agencies in information technology.
            (2) Direction for executive agency action.--The 
        Director shall issue to the head of each executive 
        agency clear and concise direction that the head of 
        such agency shall--
                    (A) establish effective and efficient 
                capital planning processes for selecting, 
                managing, and evaluating the results of all of 
                its major investments in information systems;
                    (B) determine, before making an investment 
                in a new information system--
                            (i) whether the function to be 
                        supported by the system should be 
                        performed by the private sector and, if 
                        so, whether any component of the 
                        executive agency performing that 
                        function should be converted from a 
                        governmental organization to a private 
                        sector organization; or
                            (ii) whether the function should be 
                        performed by the executive agency and, 
                        if so, whether the function should be 
                        performed by a private sector source 
                        under contract or by executive agency 
                        personnel;
                    (C) analyze the missions of the executive 
                agency and, based on the analysis, revise the 
                executive agency's mission-related processes 
                and administrative processes, as appropriate, 
                before making significant investments in 
                information technology to be used in support of 
                those missions; and
                    (D) ensure that the information security 
                policies, procedures, and practices are 
                adequate.
            (3) Guidance for multiagency investments.--The 
        direction issued under paragraph (2) shall include 
        guidance for undertaking efficiently and effectively 
        interagency and Government-wide investments in 
        information technology to improve the accomplishment of 
        missions that are common to the executive agencies.
            (4) Periodic reviews.--The Director shall implement 
        through the budget process periodic reviews of selected 
        information resources management activities of the 
        executive agencies in order to ascertain the efficiency 
        and effectiveness of information technology in 
        improving the performance of the executive agency and 
        the accomplishment of the missions of the executive 
        agency.
            (5) Enforcement of accountability.--
                    (A) In general.--The Director may take any 
                authorized action that the Director considers 
                appropriate, including an action involving the 
                budgetary process or appropriations management 
                process, to enforce accountability of the head 
                of an executive agency for information 
                resources management and for the investments 
                made by the executive agency in information 
                technology.
                    (B) Specific actions.--Actions taken by the 
                Director in the case of an executive agency may 
                include--
                            (i) recommending a reduction or an 
                        increase in any amount for information 
                        resources that the head of the 
                        executive agency proposes for the 
                        budget submitted to Congress under 
                        section 1105(a) of title 31, United 
                        States Code;
                            (ii) reducing or otherwise 
                        adjusting apportionments and 
                        reapportionments of appropriations for 
                        information resources;
                            (iii) using other authorized 
                        administrative controls over 
                        appropriations to restrict the 
                        availability of funds for information 
                        resources; and
                            (iv) designating for the executive 
                        agency an executive agent to contract 
                        with private sector sources for the 
                        performance of information resources 
                        management or the acquisition of 
                        information technology.

                     Subtitle C--Executive Agencies

SEC. 5121. RESPONSIBILITIES.

    In fulfilling the responsibilities assigned under chapter 
35 of title 44, United States Code, the head of each 
executiveagency shall comply with this subtitle with respect to the 
specific matters covered by this subtitle.

SEC. 5122. CAPITAL PLANNING AND INVESTMENT CONTROL.

    (a) Design of Process.--In fulfilling the responsibilities 
assigned under section 3506(h) of title 44, United States Code, 
the head of each executive agency shall design and implement in 
the executive agency a process for maximizing the value and 
assessing and managing the risks of the information technology 
acquisitions of the executive agency.
    (b) Content of Process.--The process of an executive agency 
shall--
            (1) provide for the selection of information 
        technology investments to be made by the executive 
        agency, the management of such investments, and the 
        evaluation of the results of such investments;
            (2) be integrated with the processes for making 
        budget, financial, and program management decisions 
        within the executive agency;
            (3) include minimum criteria to be applied in 
        considering whether to undertake a particular 
        investment in information systems, including criteria 
        related to the quantitatively expressed projected net, 
        risk-adjusted return on investment and specific 
        quantitative and qualitative criteria for comparing and 
        prioritizing alternative information systems investment 
        projects;
            (4) provide for identifying information systems 
        investments that would result in shared benefits or 
        costs for other Federal agencies or State or local 
        governments;
            (5) provide for identifying for a proposed 
        investment quantifiable measurements for determining 
        the net benefits and risks of the investment; and
            (6) provide the means for senior management 
        personnel of the executive agency to obtain timely 
        information regarding the progress of an investment in 
        an information system, including a system of milestones 
        for measuring progress, on an independently verifiable 
        basis, in terms of cost, capability of the system to 
        meet specified requirements, timeliness, and quality.

SEC. 5123. PERFORMANCE AND RESULTS-BASED MANAGEMENT.

    In fulfilling the responsibilities under section 3506(h) of 
title 44, United States Code, the head of an executive agency 
shall--
            (1) establish goals for improving the efficiency 
        and effectiveness of agency operations and, as 
        appropriate, the delivery of services to the public 
        through the effective use of information technology;
            (2) prepare an annual report, to be included in the 
        executive agency's budget submission to Congress, on 
        the progress in achieving the goals;
            (3) ensure that performance measurements are 
        prescribed for information technology used by or to be 
        acquired for, the executive agency and that the 
        performance measurements measure how well the 
        information technology supports programs of the 
        executive agency;
            (4) where comparable processes and organizations in 
        the public or private sectors exist, quantitatively 
        benchmark agency process performance against such 
        processes in terms of cost, speed, productivity, and 
        quality of outputs and outcomes;
            (5) analyze the missions of the executive agency 
        and, based on the analysis, revise the executive 
        agency's mission-related processes and administrative 
        processes as appropriate before making significant 
        investments in information technology that is to be 
        used in support of the performance of those missions; 
        and
            (6) ensure that the information security policies, 
        procedures, and practices of the executive agency are 
        adequate.

SEC. 5124. ACQUISITIONS OF INFORMATION TECHNOLOGY.

    (a) In General.--The authority of the head of an executive 
agency to conduct an acquisition of information technology 
includes the following authorities:
            (1) To acquire information technology as authorized 
        by law.
            (2) To enter into a contract that provides for 
        multiagency acquisitions of information technology in 
        accordance with guidance issued by the Director.
            (3) If the Director finds that it would be 
        advantageous for the Federal Government to do so, to 
        enter into a multiagency contract for procurement of 
        commercial items of information technology that 
        requires each executive agency covered by the contract, 
        when procuring such items, either to procure the items 
        under that contract or to justify an alternative 
        procurement of the items.
    (b) FTS 2000 Program.--Notwithstanding any other provision 
of this or any other law, the Administrator of General Services 
shall continue to manage the FTS 2000 program, and to 
coordinate the follow-on to that program, on behalf of and with 
the advice of the heads of executive agencies.

SEC. 5125. AGENCY CHIEF INFORMATION OFFICER.

    (a) Designation of Chief Information Officers.--Section 
3506 of title 44, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)(A), by striking out 
                ``senior official'' and inserting in lieu 
                thereof ``Chief Information Officer'';
                    (B) in paragraph (2)(B)--
                            (i) by striking out ``senior 
                        officials'' in the first sentence and 
                        inserting in lieu thereof ``Chief 
                        Information Officers'';
                            (ii) by striking out ``official'' 
                        in the second sentence and inserting in 
                        lieu thereof ``Chief Information 
                        Officer''; and
                            (iii) by striking out ``officials'' 
                        in the second sentence and inserting in 
                        lieu thereof ``Chief Information 
                        Officers''; and
                    (C) in paragraphs (3) and (4), by striking 
                out ``senior official'' each place it appears 
                and inserting in lieu thereof ``Chief 
                Information Officer''; and
            (2) in subsection (c)(1), by striking out 
        ``official'' in the matter preceding subparagraph (A) 
        and inserting in lieu thereof ``Chief Information 
        Officer''.
    (b) General Responsibilities.--The Chief Information 
Officer of an executive agency shall be responsible for--
            (1) providing advice and other assistance to the 
        head of the executive agency and other senior 
        management personnel of the executive agency to ensure 
        that information technology is acquired and information 
        resources are managed for the executive agency in a 
        manner that implements the policies and procedures of 
        this division, consistent with chapter 35 of title 44, 
        United States Code, and the priorities established by 
        the head of the executive agency;
            (2) developing, maintaining, and facilitating the 
        implementation of a sound and integrated information 
        technology architecture for the executive agency; and
            (3) promoting the effective and efficient design 
        and operation of all major information resources 
        management processes for the executive agency, 
        including improvements to work processes of the 
        executive agency.
    (c) Duties and Qualifications.--The Chief Information 
Officer of an agency that is listed in section 901(b) of title 
31, United States Code, shall--
            (1) have information resources management duties as 
        that official's primary duty;
            (2) monitor the performance of information 
        technology programs of the agency, evaluate the 
        performance of those programs on the basis of the 
        applicable performance measurements, and advise the 
        head of the agency regarding whether to continue, 
        modify, or terminate a program or project; and
            (3) annually, as part of the strategic planning and 
        performance evaluation process required (subject to 
        section 1117 of title 31, United States Code) under 
        section 306 of title 5, United States Code, and 
        sections 1105(a)(29), 1115, 1116, 1117, and 9703 of 
        title 31, United States Code--
                    (A) assess the requirements established for 
                agency personnel regarding knowledge and skill 
                in information resources management and the 
                adequacy of such requirements for facilitating 
                the achievement of the performance goals 
                established for information resources 
                management;
                    (B) assess the extent to which the 
                positions and personnel at the executive level 
                of the agency and the positions and personnel 
                at management level of the agency below the 
                executive level meet those requirements;
                    (C) in order to rectify any deficiency in 
                meeting those requirements, develop strategies 
                and specific plans for hiring, training, and 
                professional development; and
                    (D) report to the head of the agency on the 
                progress made in improving information 
                resources management capability.
    (d) Information Technology Architecture Defined.--In this 
section, the term ``information technology architecture'', with 
respect to an executive agency, means an integrated framework 
for evolving or maintaining existing information technology and 
acquiring new information technology to achieve the agency's 
strategic goals and information resources management goals.
    (e) Executive Level IV.--Section 5315 of title 5, United 
States Code, is amended by adding at the end the following:
            ``Chief Information Officer, Department of 
        Agriculture.
            ``Chief Information Officer, Department of 
        Commerce.
            ``Chief Information Officer, Department of Defense 
        (unless the official designated as the Chief 
        Information Officer of the Department of Defense is an 
        official listed under section 5312, 5313, or 5314 of 
        this title).
            ``Chief Information Officer, Department of 
        Education.
            ``Chief Information Officer, Department of Energy.
            ``Chief Information Officer, Department of Health 
        and Human Services.
            ``Chief Information Officer, Department of Housing 
        and Urban Development.
            ``Chief Information Officer, Department of 
        Interior.
            ``Chief Information Officer, Department of Justice.
            ``Chief Information Officer, Department of Labor.
            ``Chief Information Officer, Department of State.
            ``Chief Information Officer, Department of 
        Transportation.
            ``Chief Information Officer, Department of 
        Treasury.
            ``Chief Information Officer, Department of Veterans 
        Affairs.
            ``Chief Information Officer, Environmental 
        Protection Agency.
            ``Chief Information Officer, National Aeronautics 
        and Space Administration.
            ``Chief Information Officer, Agency for 
        International Development.
            ``Chief Information Officer, Federal Emergency 
        Management Agency.
            ``Chief Information Officer, General Services 
        Administration.
            ``Chief Information Officer, National Science 
        Foundation.
            ``Chief Information Officer, Nuclear Regulatory 
        Agency.
            ``Chief Information Officer, Office of Personnel 
        Management.
            ``Chief Information Officer, Small Business 
        Administration.''.

SEC. 5126. ACCOUNTABILITY.

    The head of each executive agency, in consultation with the 
Chief Information Officer and the Chief Financial Officer of 
that executive agency (or, in the case of an executive agency 
without a Chief Financial Officer, any comparable official), 
shall establish policies and procedures that--
            (1) ensure that the accounting, financial, and 
        asset management systems and other information systems 
        of the executive agency are designed, developed, 
        maintained, and used effectively to provide financial 
        or program performance data for financial statements of 
        the executive agency;
            (2) ensure that financial and related program 
        performance data are provided on a reliable, 
        consistent, and timely basis to executive agency 
        financial management systems; and
            (3) ensure that financial statements support--
                    (A) assessments and revisions of mission-
                related processes and administrative processes 
                of the executive agency; and
                    (B) performance measurement of the 
                performance in the case of investments made by 
                the agency in information systems.

SEC. 5127. SIGNIFICANT DEVIATIONS.

    The head of an executive agency shall identify in the 
strategic information resources management plan required under 
section 3506(b)(2) of title 44, United States Code, any major 
information technology acquisition program, or any phase or 
increment of such a program, that has significantly deviated 
from the cost, performance, or schedule goals established for 
the program.

SEC. 5128. INTERAGENCY SUPPORT.

    Funds available for an executive agency for oversight, 
acquisition, and procurement of information technology may be 
used by the head of the executive agency to support jointly 
with other executive agencies the activities of interagency 
groups that are established to advise the Director in carrying 
out the Director's responsibilities under this title. The use 
of such funds for that purpose shall be subject to such 
requirements and limitations on uses and amounts as the 
Director may prescribe. The Director shall prescribe any such 
requirements and limitations during the Director's review of 
the executive agency's proposed budget submitted to the 
Director by the head of the executive agency for purposes of 
section 1105 of title 31, United States Code.

                   Subtitle D--Other Responsibilities

SEC. 5131. RESPONSIBILITIES REGARDING EFFICIENCY, SECURITY, AND PRIVACY 
                    OF FEDERAL COMPUTER SYSTEMS.

    (a) Standards and Guidelines.--
            (1) Authority.--The Secretary of Commerce shall, on 
        the basis of standards and guidelines developed by the 
        National Institute of Standards and Technology pursuant 
        to paragraphs (2) and (3) of section 20(a) of the 
        National Institute of Standards and Technology Act (15 
        U.S.C. 278g-3(a)), promulgate standards and guidelines 
        pertaining to Federal computer systems. The Secretary 
        shall make such standards compulsory and binding to the 
        extent to which the Secretary determines necessary to 
        improve the efficiency of operation or security and 
        privacy of Federal computer systems. The President may 
        disapprove or modify such standards and guidelines if 
        the President determines such action to be in the 
        public interest. The President's authority to 
        disapprove or modify such standards and guidelines may 
        not be delegated. Notice of such disapproval or 
        modification shall be published promptly in the Federal 
        Register. Upon receiving notice of such disapproval or 
        modification, the Secretary of Commerce shall 
        immediately rescind or modify such standards or 
        guidelines as directed by the President.
            (2) Exercise of authority.--The authority conferred 
        upon the Secretary of Commerce by this section shall be 
        exercised subject to direction by the President and in 
        coordination with the Director to ensure fiscal and 
        policy consistency.
    (b) Application of More Stringent Standards.--The head of a 
Federal agency may employ standards for the cost-effective 
security and privacy of sensitive information in a Federal 
computer system within or under the supervision of that agency 
that are more stringent than the standards promulgated by the 
Secretary of Commerce under this section, if such standards 
contain, at a minimum, the provisions of those applicable 
standards made compulsory and binding by the Secretary of 
Commerce.
    (c) Waiver of Standards.--The standards determined under 
subsection (a) to be compulsory and binding may be waived by 
the Secretary of Commerce in writing upon a determination that 
compliance would adversely affect the accomplishment of the 
mission of an operator of a Federal computer system, or cause a 
major adverse financial impact on the operator which is not 
offset by Government-wide savings. The Secretary may delegate 
to the head of one or more Federal agencies authority to waive 
such standards to the extent to which the Secretary determines 
such action to be necessary and desirable to allow for timely 
and effective implementation of Federal computer system 
standards. The head of such agency may redelegate such 
authority only to a Chief Information Officer designated 
pursuant to section 3506 of title 44, United States Code. 
Notice of each such waiver and delegation shall be transmitted 
promptly to Congress and shall be published promptly in the 
Federal Register.
    (d) Definitions.--In this section, the terms ``Federal 
computer system'' and ``operator of a Federal computer system'' 
have the meanings given such terms in section 20(d) of the 
National Institute of Standards and Technology Act (15 U.S.C. 
278g-3(d)).
    (e) Technical Amendments.--Chapter 35 of title 44, United 
States Code, is amended--
            (1) in section 3504(g)--
                    (A) in paragraph (2), by striking out ``the 
                Computer Security Act of 1987 (40 U.S.C. 759 
                note)'' and inserting in lieu thereof 
                ``sections 20 and 21 of the National Institute 
                of Standards and Technology Act (15 U.S.C. 
                278g-3 and 278g-4), section 5131 of the 
                Information Technology Management Reform Act of 
                1996, and sections 5 and 6 of the Computer 
                Security Act of 1987 (40 U.S.C. 759 note)''; 
                and
                    (B) in paragraph (3), by striking out ``the 
                Computer Security Act of 1987 (40 U.S.C. 759 
                note)'' and inserting in lieu thereof ``the 
                standards and guidelines promulgated under 
                section 5131 of the Information Technology 
                Management Reform Act of 1996 and sections 5 
                and 6 of the Computer Security Act of 1987 (40 
                U.S.C. 759 note)''; and
            (2) in section 3518(d), by striking out ``Public 
        Law 89-306 on the Administrator of the General Services 
        Administration, the Secretary of Commerce, or'' and 
        inserting in lieu thereof ``section 5131 of the 
        Information Technology Management Reform Act of 1996 
        and the Computer Security Act of 1987 (40 U.S.C. 759 
        note) on the Secretary of Commerce or''.

SEC. 5132. SENSE OF CONGRESS.

    It is the sense of Congress that, during the next five-year 
period beginning with 1996, executive agencies should achieve 
each year at least a 5 percent decrease in the cost (in 
constant fiscal year 1996 dollars) that is incurred by the 
agency for operating and maintaining information technology, 
and each year a 5 percent increase in the efficiency of the 
agency operations, by reason of improvements in information 
resources management by the agency.

                 Subtitle E--National Security Systems

SEC. 5141. APPLICABILITY TO NATIONAL SECURITY SYSTEMS.

    (a) In General.--Except as provided in subsection (b), this 
title does not apply to national security systems.
    (b) Exceptions.--
            (1) In general.--Sections 5123, 5125, and 5126 
        apply to national security systems.
            (2) Capital planning and investment control.--The 
        heads of executive agencies shall apply sections 5112 
        and 5122 to national security systems to the extent 
        practicable.
            (3) Performance and results of information 
        technology investments.--(A) Subject to subparagraph 
        (B), the heads of executive agencies shall apply 
        section 5113 to national security systems to the extent 
        practicable.
            (B) National security systems shall be subject to 
        section 5113(b)(5) except for subparagraph (B)(iv) of 
        that section.

SEC. 5142. NATIONAL SECURITY SYSTEM DEFINED.

    (a) Definition.--In this subtitle, the term ``national 
security system'' means any telecommunications or information 
system operated by the United States Government, the function, 
operation, or use of which--
            (1) involves intelligence activities;
            (2) involves cryptologic activities related to 
        national security;
            (3) involves command and control of military 
        forces;
            (4) involves equipment that is an integral part of 
        a weapon or weapons system; or
            (5) subject to subsection (b), is critical to the 
        direct fulfillment of military or intelligence 
        missions.
    (b) Limitation.--Subsection (a)(5) does not include a 
system that is to be used for routine administrative and 
business applications (including payroll, finance, logistics, 
and personnel management applications).

     TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

SEC. 5201. PROCUREMENT PROCEDURES.

    The Federal Acquisition Regulatory Council shall ensure 
that, to the maximum extent practicable, the process for 
acquisition of information technology is a simplified, clear, 
and understandable process that specifically addresses the 
management of risk, incremental acquisitions, and the need to 
incorporate commercial information technology in a timely 
manner.

SEC. 5202. INCREMENTAL ACQUISITION OF INFORMATION TECHNOLOGY.

    (a) Policy.--The Office of Federal Procurement Policy Act 
(41 U.S.C. 401 et seq.) is amended by adding at the end the 
following new section:

``SEC. 35. MODULAR CONTRACTING FOR INFORMATION TECHNOLOGY.

    ``(a) In General.--The head of an executive agency should, 
to the maximum extent practicable, use modular contracting for 
an acquisition of a major system of information technology.
    ``(b) Modular Contracting Described.--Under modular 
contracting, an executive agency's need for a system is 
satisfied in successive acquisitions of interoperable 
increments. Each increment complies with common or commercially 
accepted standards applicable to information technology so that 
the increments are compatible with other increments of 
information technology comprising the system.
    ``(c) Implementation.--The Federal Acquisition Regulation 
shall provide that--
            ``(1) under the modular contracting process, an 
        acquisition of a major system of information technology 
        may be divided into several smaller acquisition 
        increments that--
                    ``(A) are easier to manage individually 
                than would be one comprehensive acquisition;
                    ``(B) address complex information 
                technology objectives incrementally in order to 
                enhance the likelihood of achieving workable 
                solutions for attainment of those objectives;
                    ``(C) provide for delivery, implementation, 
                and testing of workable systems or solutions in 
                discrete increments each of which comprises a 
                system or solution that is not dependent on any 
                subsequent increment in order to perform its 
                principal functions; and
                    ``(D) provide an opportunity for subsequent 
                increments of the acquisition to take advantage 
                of any evolution in technology or needs that 
                occur during conduct of the earlier increments;
            ``(2) a contract for an increment of an information 
        technology acquisition should, to the maximum extent 
        practicable, be awarded within 180 days after the date 
        on which the solicitation is issued and, if the 
        contract for that increment cannot be awarded within 
        such period, the increment should be considered for 
        cancellation; and
            ``(3) the information technology provided for in a 
        contract for acquisition of information technology 
        should be delivered within 18 months after the date on 
        which the solicitation resulting in award of the 
        contract was issued.''.
    (b) Clerical Amendment.--The table of contents in section 
1(b) of such Act is amended by inserting after the item 
relating to section 34 the following new item:

``Sec. 35. Modular contracting for information technology.''.

     TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

                 Subtitle A--Conduct of Pilot Programs

SEC. 5301. AUTHORITY TO CONDUCT PILOT PROGRAMS.

    (a) In General.--
            (1) Purpose.--The Administrator for Federal 
        Procurement Policy (hereinafter referred to as the 
        ``Administrator''), in consultation with the 
        Administrator for the Office of Information and 
        Regulatory Affairs, may conduct pilot programs in order 
        to test alternative approaches for acquisition of 
        information technology by executive agencies.
            (2) Multiagency, multi-activity conduct of each 
        program.--Except as otherwise provided in this title, 
        each pilot program conducted under this title shall be 
        carried out in not more than two procuring activities 
        in each of the executive agencies that are designated 
        by the Administrator in accordance with this title to 
        carry out the pilot program. The head of each 
        designated executive agency shall, with the approval of 
        the Administrator, select the procuring activities of 
        the executive agency that are to participate in the 
        test and shall designate a procurement testing official 
        who shall be responsible for the conduct and evaluation 
        of the pilot program within the executive agency.
    (b) Limitations.--
            (1) Number.--Not more than two pilot programs may 
        be conducted under the authority of this title, 
        including one pilot program each pursuant to the 
        requirements of sections 5311 and 5312.
            (2) Amount.--The total amount obligated for 
        contracts entered into under the pilot programs 
        conducted under the authority of this title may not 
        exceed $750,000,000. The Administrator shall monitor 
        such contracts and ensure that contracts are not 
        entered into in violation of the limitation in the 
        preceding sentence.
    (c) Period of Programs.--
            (1) In general.--Subject to paragraph (2), any 
        pilot program may be carried out under this title for 
        the period, not in excess of five years, that is 
        determined by the Administrator as being sufficient to 
        establish reliable results.
            (2) Continuing validity of contracts.--A contract 
        entered into under the pilot program before the 
        expiration of that program shall remain in effect 
        according to the terms of the contract after the 
        expiration of the program.

SEC. 5302. EVALUATION CRITERIA AND PLANS.

    (a) Measurable Test Criteria.--The head of each executive 
agency conducting a pilot program under section 5301 shall 
establish, to the maximum extent practicable, measurable 
criteria for evaluating the effects of the procedures or 
techniques to be tested under the program.
    (b) Test Plan.--Before a pilot program may be conducted 
under section 5301, the Administrator shall submit to Congress 
a detailed test plan for the program, including a detailed 
description of the procedures to be used and a list of any 
regulations that are to be waived.

SEC. 5303. REPORT.

    (a) Requirement.--Not later than 180 days after the 
completion of a pilot program under this title, the 
Administrator shall--
            (1) submit to the Director a report on the results 
        and findings under the program; and
            (2) provide a copy of the report to Congress.
    (b) Content.--The report shall include the following:
            (1) A detailed description of the results of the 
        program, as measured by the criteria established for 
        the program.
            (2) A discussion of any legislation that the 
        Administrator recommends, or changes in regulations 
        that the Administrator considers necessary, in order to 
        improve overall information resources management within 
        the Federal Government.

SEC. 5304. RECOMMENDED LEGISLATION.

    If the Director determines that the results and findings 
under a pilot program under this title indicate that 
legislation is necessary or desirable in order to improve the 
process for acquisition of information technology, the Director 
shall transmit the Director's recommendations for such 
legislation to Congress.

SEC. 5305. RULE OF CONSTRUCTION.

    Nothing in this title shall be construed as authorizing the 
appropriation or obligation of funds for the pilot programs 
authorized under this title.

                  Subtitle B--Specific Pilot Programs

SEC. 5311. SHARE-IN-SAVINGS PILOT PROGRAM.

    (a) Requirement.--The Administrator may authorize the heads 
of two executive agencies to carry out a pilot program to test 
the feasibility of--
            (1) contracting on a competitive basis with a 
        private sector source to provide the Federal Government 
        with an information technology solution for improving 
        mission-related or administrative processes of the 
        Federal Government; and
            (2) paying the private sector source an amount 
        equal to a portion of the savings derived by the 
        Federal Government from any improvements in mission-
        related processes and administrative processes that 
        result from implementation of the solution.
    (b) Limitations.--The head of an executive agency 
authorized to carry out the pilot program may, under the pilot 
program, carry out one project and enter into not more than 
five contracts for the project.
    (c) Selection of Projects.--The projects shall be selected 
by the Administrator, in consultation with the Administrator 
for the Office of Information and Regulatory Affairs.

SEC. 5312. SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.

    (a) In General.--The Administrator may authorize the heads 
of any of the executive agencies, in accordance with subsection 
(d)(2), to carry out a pilot program to test the feasibility of 
using solutions-based contracting for acquisition of 
information technology.
    (b) Solutions-Based Contracting Described.--For purposes of 
this section, solutions-based contracting is an acquisition 
method under which the acquisition objectives are defined by 
the Federal Government user of the technology to be acquired, a 
streamlined contractor selection process is used, and industry 
sources are allowed to provide solutions that attain the 
objectives effectively.
    (c) Process Requirements.--The Administrator shall require 
use of a process with the following aspects for acquisitions 
under the pilot program:
            (1) Acquisition plan emphasizing desired result.--
        Preparation of an acquisition plan that defines the 
        functional requirements of the intended users of the 
        information technology to be acquired, identifies the 
        operational improvements to be achieved, and defines 
        the performance measurements to be applied in 
        determining whether the information technology acquired 
        satisfies the defined requirements and attains the 
        identified results.
            (2) Results-oriented statement of work.--Use of a 
        statement of work that is limited to an expression of 
        the end results or performance capabilities desired 
        under the acquisition plan.
            (3) Small acquisition organization.--Assembly of a 
        small acquisition organization consisting of the 
        following:
                    (A) An acquisition management team, the 
                members of which are to be evaluated and 
                rewarded under the pilot program for 
                contributions toward attainment of the desired 
                results identified in the acquisition plan.
                    (B) A small source selection team composed 
                of representatives of the specific mission or 
                administrative area to be supported by the 
                information technology to be acquired, together 
                with a contracting officer and persons with 
                relevant expertise.
            (4) Use of source selection factors emphasizing 
        source qualifications and costs.--Use of source 
        selection factors that emphasize--
                    (A) the qualifications of the offeror, 
                including such factors as personnel skills, 
                previous experience in providing other private 
                or public sector organizations with solutions 
                for attaining objectives similar to the 
                objectives of the acquisition, past contract 
                performance, qualifications of the proposed 
                program manager, and the proposed management 
                plan; and
                    (B) the costs likely to be associated with 
                the conceptual approach proposed by the 
                offeror.
            (5) Open communications with contractor 
        community.--Open availability of the following 
        information to potential offerors:
                    (A) The agency mission to be served by the 
                acquisition.
                    (B) The functional process to be performed 
                by use of information technology.
                    (C) The process improvements to be 
                attained.
            (6) Simple solicitation.--Use of a simple 
        solicitation that sets forth only the functional work 
        description, the source selection factors to be used in 
        accordance with paragraph (4), the required terms and 
        conditions, instructions regarding submission of 
        offers, and the estimate of the Federal Government's 
        budget for the desired work.
            (7) Simple proposals.--Submission of oral 
        presentations and written proposals that are limited in 
        size and scope and contain information on--
                    (A) the offeror's qualifications to perform 
                the desired work;
                    (B) past contract performance;
                    (C) the proposed conceptual approach; and
                    (D) the costs likely to be associated with 
                the proposed conceptual approach.
            (8) Simple evaluation.--Use of a simplified 
        evaluation process, to be completed within 45 days 
        after receipt of proposals, which consists of the 
        following:
                    (A) Identification of the most qualified 
                offerors that are within the competitive range.
                    (B) Issuance of invitations for at least 
                three and not more than five of the identified 
                offerors to make oral presentations to, and 
                engage in discussions with, the evaluating 
                personnel regarding, for each offeror--
                            (i) the qualifications of the 
                        offeror, including how the 
                        qualifications of the offeror relate to 
                        the approach proposed to be taken by 
                        the offeror in the acquisition; and
                            (ii) the costs likely to be 
                        associated with the approach.
                    (C) Evaluation of the qualifications of the 
                identified offerors and the costs likely to be 
                associated with the offerors' proposals on the 
                basis of submissions required under the process 
                and any oral presentations made by, and any 
                discussions with, the offerors.
            (9) Selection of most qualified offeror.--A 
        selection process consisting of the following:
                    (A) Identification of the most qualified 
                source, and ranking of alternative sources, 
                primarily on the basis of the oral proposals, 
                presentations, and discussions, and written 
                proposals submitted in accordance with 
                paragraph (7).
                    (B) Conduct for 30 to 60 days of a program 
                definition phase (funded, in the case of the 
                source ultimately awarded the contract, by the 
                Federal Government)--
                            (i) during which the selected 
                        source, in consultation with one or 
                        more intended users, develops a 
                        conceptual system design and technical 
                        approach, defines logical phases for 
                        the project, and estimates the total 
                        cost and the cost for each phase; and
                            (ii) after which a contract for 
                        performance of the work may be awarded 
                        to that source on the basis of cost, 
                        the responsiveness, reasonableness, and 
                        quality of the proposed performance, 
                        and a sharing of risk and benefits 
                        between the source and the Government.
                    (C) Conduct of as many successive program 
                definition phases with alternative sources (in 
                the order ranked) as is necessary in order to 
                award a contract in accordance with 
                subparagraph (B).
            (10) System implementation phasing.--System 
        implementation to be executed in phases that are 
        tailored to the solution, with various contract 
        arrangements being used, as appropriate, for various 
        phases and activities.
            (11) Mutual authority to terminate.--Authority for 
        the Federal Government or the contractor to terminate 
        the contract without penalty at the end of any phase 
        defined for the project.
            (12) Time management discipline.--Application of a 
        standard for awarding a contract within 105 to 120 days 
        after issuance of the solicitation.
    (d) Pilot Program Design.--
            (1) Joint public-private working group.--The 
        Administrator, in consultation with the Administrator 
        for the Office of Information and Regulatory Affairs, 
        shall establish a joint working group of Federal 
        Government personnel and representatives of the 
        information technology industry to design a plan for 
        conduct of any pilot program carried out under this 
        section.
            (2) Content of plan.--The plan shall provide for 
        use of solutions-based contracting in the Department of 
        Defense and not more than two other executive agencies 
        for a total of--
                    (A) not more than 10 projects, each of 
                which has an estimated cost of between 
                $25,000,000 and $100,000,000; and
                    (B) not more than 10 projects, each of 
                which has an estimated cost of between 
                $1,000,000 and $5,000,000, to be set aside for 
                small business concerns.
            (3) Complexity of projects.--(A) Subject to 
        subparagraph (C), each acquisition project under the 
        pilot program shall be sufficiently complex to provide 
        for meaningful evaluation of the use of solutions-based 
        contracting for acquisition of information technology 
        for executive agencies.
            (B) In order for an acquisition project to satisfy 
        the requirement in subparagraph (A), the solution for 
        attainment of the executive agency's objectives under 
        the project should not be obvious, but rather shall 
        involve a need for some innovative development and 
        systems integration.
            (C) An acquisition project should not be so 
        extensive or lengthy as to result in undue delay in the 
        evaluation of the use of solutions-based contracting.
    (e) Monitoring by GAO.--The Comptroller General of the 
United States shall--
            (1) monitor the conduct, and review the results, of 
        acquisitions under the pilot program; and
            (2) submit to Congress periodic reports containing 
        the views of the Comptroller General on the activities, 
        results, and findings under the pilot program.

     TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

SEC. 5401. ON-LINE MULTIPLE AWARD SCHEDULE CONTRACTING.

    (a) Automation of Multiple Award Schedule Contracting.--In 
order to provide for the economic and efficient procurement of 
information technology and other commercial items, the 
Administrator of General Services shall provide through the 
Federal Acquisition Computer Network (in this section referred 
to as ``FACNET''), not later than January 1, 1998, Government-
wide on-line computer access to information on products and 
services that are available for ordering under the multiple 
award schedules. If the Administrator determines it is not 
practicable to provide such access through FACNET, the 
Administrator shall provide such access through another 
automated system that has the capability to perform the 
functions listed in subsection (b)(1) and meets the requirement 
of subsection (b)(2).
    (b) Additional FACNET Functions.--(1) In addition to the 
functions specified in section 30(b) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 426(b)), the FACNET 
architecture shall have the capability to perform the following 
functions:
            (A) Provide basic information on prices, features, 
        and performance of all products and services available 
        for ordering through the multiple award schedules.
            (B) Provide for updating that information to 
        reflect changes in prices, features, and performance as 
        soon as information on the changes becomes available.
            (C) Enable users to make on-line computer 
        comparisons of the prices, features, and performance of 
        similar products and services offered by various 
        vendors.
    (2) The FACNET architecture shall be used to place orders 
under the multiple award schedules in a fiscal year for an 
amount equal to at least 60 percent of the total amount spent 
for all orders under the multiple award schedules in that 
fiscal year.
    (c) Streamlined Procedures.--
            (1) Pilot program.--Upon certification by the 
        Administrator of General Services that the FACNET 
        architecture meets the requirements of subsection 
        (b)(1) and was used as required by subsection (b)(2) in 
        the fiscal year preceding the fiscal year in which the 
        certification is made, the Administrator for Federal 
        Procurement Policy may establish a pilot program to 
        test streamlined procedures for the procurement of 
        information technology products and services available 
        for ordering through the multiple award schedules.
            (2) Applicability to multiple award schedule 
        contracts.--Except as provided in paragraph (4), the 
        pilot program shall be applicable to all multiple award 
        schedule contracts for the purchase of information 
        technology and shall test the following procedures:
                    (A) A procedure under which negotiation of 
                the terms and conditions for a covered multiple 
                award schedule contract is limited to terms and 
                conditions other than price.
                    (B) A procedure under which the vendor 
                establishes the prices under a covered multiple 
                award schedule contract and may adjust those 
                prices at any time in the discretion of the 
                vendor.
                    (C) A procedure under which a covered 
                multiple award schedule contract is awarded to 
                any responsible offeror that--
                            (i) has a suitable record of past 
                        performance, which may include past 
                        performance on multiple award schedule 
                        contracts;
                            (ii) agrees to terms and conditions 
                        that the Administrator determines as 
                        being required by law or as being 
                        appropriate for the purchase of 
                        commercial items; and
                            (iii) agrees to establish and 
                        update prices, features, and 
                        performance and to accept orders 
                        electronically through the automated 
                        system established pursuant to 
                        subsection (a).
            (3) Comptroller general review and report.--(A) Not 
        later than three years after the date on which the 
        pilot program is established, the Comptroller General 
        of the United States shall review the pilot program and 
        report to the Congress on the results of the pilot 
        program.
            (B) The report shall include the following:
                    (i) An evaluation of the extent to which 
                there is competition for the orders placed 
                under the pilot program.
                    (ii) The effect that the streamlined 
                procedures under the pilot program have on 
                prices charged under multiple award schedule 
                contracts.
                    (iii) The effect that such procedures have 
                on paperwork requirements for multiple award 
                schedule contracts and orders.
                    (iv) The impact of the pilot program on 
                small businesses and socially and economically 
                disadvantaged small businesses.
            (4) Withdrawal of schedule or portion of schedule 
        from pilot program.--The Administrator may withdraw a 
        multiple award schedule or portion of a schedule from 
        the pilot program if the Administrator determines that 
        (A) price competition is not available under such 
        schedule or portion thereof, or (B) the cost to the 
        Government for that schedule or portion thereof for the 
        previous year was higher than it would have been if the 
        contracts for such schedule or portion thereof had been 
        awarded using procedures that would apply if the pilot 
        program were not in effect. The Administrator shall 
        notify Congress at least 30 days before the date on 
        which the Administrator withdraws a schedule or portion 
        thereof under this paragraph. The authority under this 
        paragraph may not be delegated.
            (5) Termination of pilot program.--Unless 
        reauthorized by law, the authority of the Administrator 
        to award contracts under the pilot program shall expire 
        four years after the date on which the pilot program is 
        established. Contracts entered into before the 
        authority expires shall remain in effect in accordance 
        with their terms notwithstanding the expiration of the 
        authority to award new contracts under the pilot 
        program.
    (d) Definition.--In this section, the term ``FACNET'' means 
the Federal Acquisition Computer Network established under 
section 30 of the Office of Federal Procurement Policy Act (41 
U.S.C. 426).

SEC. 5402. IDENTIFICATION OF EXCESS AND SURPLUS COMPUTER EQUIPMENT.

    Not later than six months after the date of the enactment 
of this Act, the head of an executive agency shall inventory 
all computer equipment under the control of that official. 
After completion of the inventory, the head of the executive 
agency shall maintain, in accordance with title II of the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 481 et seq.), an inventory of any such equipment that is 
excess or surplus property.

SEC. 5403. ACCESS OF CERTAIN INFORMATION IN INFORMATION SYSTEMS TO THE 
                    DIRECTORY ESTABLISHED UNDER SECTION 4101 OF TITLE 
                    44, UNITED STATES CODE.

    Notwithstanding any other provision of this division, if in 
designing an information technology system pursuant to this 
division, the head of an executive agency determines that a 
purpose of the system is to disseminate information to the 
public, then the head of such executive agency shall reasonably 
ensure that an index of information disseminated by such system 
is included in the directory created pursuant to section 4101 
of title 44, United States Code. Nothing in this section 
authorizes the dissemination of information to the public 
unless otherwise authorized.

   TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

SEC. 5501. PERIOD FOR PROCESSING PROTESTS.

    Title 31, United States Code, is amended as follows:
            (1) Section 3553(b)(2)(A) is amended by striking 
        out ``35'' and inserting in lieu thereof ``30''.
            (2) Section 3554 is amended--
                    (A) in subsection (a)(1), by striking out 
                ``125'' and inserting in lieu thereof ``100''; 
                and
                    (B) in subsection (e)--
                            (i) in paragraph (1), by striking 
                        out ``Government Operations'' and 
                        inserting in lieu thereof ``Government 
                        Reform and Oversight''; and
                            (ii) in paragraph (2), by striking 
                        out ``125'' and inserting in lieu 
                        thereof ``100''.

SEC. 5502. AVAILABILITY OF FUNDS FOLLOWING GAO RESOLUTION OF CHALLENGE 
                    TO CONTRACTING ACTION.

    (a) In General.--Section 1558 of title 31, United States 
Code, is amended--
            (1) in the first sentence of subsection (a)--
                    (A) by inserting ``or other action referred 
                to in subsection (b)'' after ``protest'' the 
                first place it appears;
                    (B) by striking out ``90 working days'' and 
                inserting in lieu thereof ``100 days''; and
                    (C) by inserting ``or other action'' after 
                ``protest'' the second place it appears; and
            (2) by striking out subsection (b) and inserting in 
        lieu thereof the following:
    ``(b) Subsection (a) applies with respect to--
            ``(1) any protest filed under subchapter V of 
        chapter 35 of this title; or
            ``(2) an action commenced under administrative 
        procedures or for a judicial remedy if--
                    ``(A) the action involves a challenge to--
                            ``(i) a solicitation for a 
                        contract;
                            ``(ii) a proposed award of a 
                        contract;
                            ``(iii) an award of a contract; or
                            ``(iv) the eligibility of an 
                        offeror or potential offeror for a 
                        contract or of the contractor awarded 
                        the contract; and
                    ``(B) commencement of the action delays or 
                prevents an executive agency from making an 
                award of a contract or proceeding with a 
                procurement.''.
    (b) Conforming Amendment.--The heading of such section is 
amended to read as follows:

``Sec. 1558. Availability of funds following resolution of a formal 
                    protest or other challenge''.

    (c) Clerical Amendment.--The item relating to such section 
in the table of sections at the beginning of chapter 15 of 
title 31, United States Code, is amended to read as follows:

``1558. Availability of funds following resolution of a formal protest 
          or other challenge.''.

             TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

SEC. 5601. AMENDMENTS TO TITLE 10, UNITED STATES CODE.

    (a) Protest File.--Section 2305(e) is amended by striking 
out paragraph (3).
    (b) Multiyear Contracts.--Section 2306b of such title is 
amended--
            (1) by striking out subsection (k); and
            (2) by redesignating subsection (l) as subsection 
        (k).
    (c) Law Inapplicable to Procurement of Information 
Technology.--Section 2315 of title 10, United States Code, is 
amended by striking out ``Section 111'' and all that follows 
through ``use of equipment or services if,'' and inserting in 
lieu thereof the following: ``For the purposes of the 
Information Technology Management Reform Act of 1996, the term 
`national security systems' means those telecommunications and 
information systems operated by the Department of Defense, the 
functions, operation or use of which''.

SEC. 5602. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

    (a) References to Brooks Automatic Data Processing Act.--
Section 612 of title 28, United States Code, is amended--
            (1) in subsection (f), by striking out ``section 
        111 of the Federal Property and Administrative Services 
        Act of 1949 (40 U.S.C. 759)'' and inserting in lieu 
        thereof ``the provisions of law, policies, and 
        regulations applicable to executive agencies under the 
        Information Technology Management Reform Act of 1996'';
            (2) in subsection (g), by striking out ``sections 
        111 and 201 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 481 and 759)'' and 
        inserting in lieu thereof ``section 201 of the Federal 
        Property and Administrative Services Act of 1949 (40 
        U.S.C. 481)'';
            (3) by striking out subsection (l); and
            (4) by redesignating subsection (m) as subsection 
        (l).
    (b) References to Automatic Data Processing.--Section 612 
of title 28, United States Code, is further amended--
            (1) in the heading, by striking out the second word 
        and inserting in lieu thereof ``Information 
        Technology'';
            (2) in subsection (a), by striking out ``Judiciary 
        Automation Fund'' and inserting in lieu thereof 
        ``Judiciary Information Technology Fund''; and
            (3) by striking out ``automatic data processing'' 
        and inserting in lieu thereof ``information 
        technology'' each place it appears in subsections (a), 
        (b), (c)(2), (e), (f), and (h)(1).

SEC. 5603. AMENDMENT TO TITLE 31, UNITED STATES CODE.

    Section 3552 of title 31, United States Code, is amended by 
striking out the second sentence.

SEC. 5604. AMENDMENTS TO TITLE 38, UNITED STATES CODE.

    Section 310 of title 38, United States Code, is amended to 
read as follows:

``Sec. 310. Chief Information Officer

    ``(a) The Chief Information Officer for the Department is 
designated pursuant to section 3506(a)(2) of title 44.
    ``(b) The Chief Information Officer performs the duties 
provided for chief information officers of executive agencies 
under chapter 35 of title 44 and the Information Technology 
Management Reform Act of 1996.''.

SEC. 5605. PROVISIONS OF TITLE 44, UNITED STATES CODE, RELATING TO 
                    PAPERWORK REDUCTION.

    (a) Definition.--Section 3502 of title 44, United States 
Code, is amended by striking out paragraph (9) and inserting in 
lieu thereof the following:
            ``(9) the term `information technology' has the 
        meaning given that term in section 5002 of the 
        Information Technology Management Reform Act of 1996 
        but does not include national security systems as 
        defined in section 5142 of that Act;''.
    (b) Development of Standards and Guidelines by National 
Institute of Standards and Technology.--Section 3504(h)(1)(B) 
of such title is amended by striking out ``section 111(d) of 
the Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 759(d))'' and inserting in lieu thereof ``section 
5131 of the Information Technology Management Reform Act of 
1996''.
    (c) Compliance With Directives.--Section 3504(h)(2) of such 
title is amended by striking out ``sections 110 and 111 of the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 757 and 759)'' and inserting in lieu thereof ``the 
Information Technology Management Reform Act of 1996 and 
directives issued under section 110 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 757)''.
    (d) Collection of Information.--Section 3507(j)(2) of such 
title is amended by striking out ``90 days'' in the second 
sentence and inserting in lieu thereof ``180 days''.

SEC. 5606. AMENDMENT TO TITLE 49, UNITED STATES CODE.

    Section 40112(a) of title 49, United States Code, is 
amended by striking out ``or a contract to purchase property to 
which section 111 of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759) applies''.

SEC. 5607. OTHER LAWS.

    (a) National Institute of Standards and Technology Act.--
Section 20 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278g-3) is amended--
            (1) in subsection (a)--
                    (A) by striking out ``section 3502(2) of 
                title 44'' each place it appears in paragraphs 
                (2) and (3)(A) and inserting in lieu thereof 
                ``section 3502(9) of title 44''; and
                    (B) in paragraph (4), by striking out 
                ``section 111(d) of the Federal Property and 
                Administrative Services Act of 1949'' and 
                inserting in lieu thereof ``section 5131 of the 
                Information Technology Management Reform Act of 
                1996'';
            (2) in subsection (b)--
                    (A) by striking out paragraph (2);
                    (B) in paragraph (3), by striking out 
                ``section 111(d) of the Federal Property and 
                Administrative Services Act of 1949'' and 
                inserting in lieu thereof ``section 5131 of the 
                Information Technology Management Reform Act of 
                1996''; and
                    (C) by redesignating paragraphs (3), (4), 
                (5), and (6) as paragraphs (2), (3), (4), and 
                (5); and
            (3) in subsection (d)--
                    (A) in paragraph (1)(B)(v), by striking out 
                ``as defined'' and all that follows and 
                inserting in lieu thereof a semicolon; and
                    (B) in paragraph (2)--
                            (i) by striking out ``system'--'' 
                        and all that follows through ``means'' 
                        in subparagraph (A) and inserting in 
                        lieu thereof ``system' means''; and
                            (ii) by striking out ``; and'' at 
                        the end of subparagraph (A) and all 
                        that follows through the end of 
                        subparagraph (B) and inserting in lieu 
                        thereof a semicolon.
    (b) Computer Security Act of 1987.--
            (1) Purposes.--Section 2(b)(2) of the Computer 
        Security Act of 1987 (Public Law 100-235; 101 Stat. 
        1724) is amended by striking out ``by amending section 
        111(d) of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 759(d))''.
            (2) Security plan.--Section 6(b) of such Act (101 
        Stat. 1729; 40 U.S.C. 759 note) is amended--
                    (A) by striking out ``Within one year after 
                the date of enactment of this Act, each such 
                agency shall, consistent with the standards, 
                guidelines, policies, and regulations 
                prescribed pursuant to section 111(d) of the 
                Federal Property and Administrative Services 
                Act of 1949,'' and inserting in lieu thereof 
                ``Each such agency shall, consistent with the 
                standards, guidelines, policies, and 
                regulations prescribed pursuant to section 5131 
                of the Information Technology Management Reform 
                Act of 1996,''; and
                    (B) by striking out ``Copies'' and all that 
                follows through ``Code.''.
    (c) Federal Property and Administrative Services Act of 
1949.--Section 303B(h) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253b(h)) is 
amended by striking out paragraph (3).
    (d) Office of Federal Procurement Policy Act.--Section 
6(h)(1) of the Office of Federal Procurement Policy Act (41 
U.S.C. 405(h)(1)) is amended by striking out ``of automatic 
data processing and telecommunications equipment and services 
or''.
    (e) National Energy Conservation Policy Act.--Section 
801(b)(3) of the National Energy Conservation Policy Act (42 
U.S.C. 8287(b)(3)) is amended by striking out the second 
sentence.
    (f) Central Intelligence Agency Act of 1949.--Section 3 of 
the Central Intelligence Agency Act of 1949 (50 U.S.C. 403c) is 
amended by striking out subsection (e).

SEC. 5608. CLERICAL AMENDMENTS.

    (a) Federal Property and Administrative Services Act of 
1949.--The table of contents in section 1(b) of the Federal 
Property and Administrative Services Act of 1949 is amended by 
striking out the item relating to section 111.
    (b) Title 38, United States Code.--The table of sections at 
the beginning of chapter 3 of title 38, United States Code, is 
amended by striking out the item relating to section 310 and 
inserting in lieu thereof the following:

``310. Chief Information Officer.''.

     TITLE LVII--EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF 
                              CONSTRUCTION

SEC. 5701. EFFECTIVE DATE.

    This division and the amendments made by this division 
shall take effect 180 days after the date of the enactment of 
this Act.

SEC. 5702. SAVINGS PROVISIONS.

    (a) Regulations, Instruments, Rights, and Privileges.--All 
rules, regulations, contracts, orders, determinations, permits, 
certificates, licenses, grants, and privileges--
            (1) which have been issued, made, granted, or 
        allowed to become effective by the Administrator of 
        General Services or the General Services Board of 
        Contract Appeals, or by a court of competent 
        jurisdiction, in connection with an acquisition 
        activity carried out under the section 111 of the 
        Federal Property and Administrative Services Act of 
        1949 (40 U.S.C. 759), and
            (2) which are in effect on the effective date of 
        this division,

shall continue in effect according to their terms until 
modified, terminated, superseded, set aside, or revoked in 
accordance with law by the Director or any other authorized 
official, by a court of competent jurisdiction, or by operation 
of law.
    (b) Proceedings.--
            (1) Proceedings generally.--This division and the 
        amendments made by this division shall not affect any 
        proceeding, including any proceeding involving a claim, 
        application, or protest in connection with an 
        acquisition activity carried out under section 111 of 
        the Federal Property and Administrative Services Act of 
        1949 (40 U.S.C. 759) that is pending before the 
        Administrator of General Services or the General 
        Services Board of Contract Appeals on the effective 
        date of this division.
            (2) Orders.--Orders may be issued in any such 
        proceeding, appeals may be taken therefrom, and 
        payments may be made pursuant to such orders, as if 
        this division had not been enacted. An order issued in 
        any such proceeding shall continue in effect until 
        modified, terminated, superseded, or revoked in 
        accordance with law by the Director or any other 
        authorized official, by a court of competent 
        jurisdiction, or by operation of law.
            (3) Discontinuance or modification of proceedings 
        not prohibited.--Nothing in this subsection prohibits 
        the discontinuance or modification of any such 
        proceeding under the same terms and conditions and to 
        the same extent that such proceeding could have been 
        discontinued or modified if this Act had not been 
        enacted.
            (4) Other authority and prohibition.--Section 
        1558(a) of title 31, United States Code, and the second 
        sentence of section 3552 of such title shall continue 
        to apply with respect to a protest process in 
        accordance with this subsection.
            (5) Regulations for transfer of proceedings.--The 
        Director may prescribe regulations providing for the 
        orderly transfer of proceedings continued under 
        paragraph (1).
    (c) Standards and Guidelines for Federal Computer 
Systems.--Standards and guidelines that are in effect for 
Federal computer systems under section 111(d) of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 
759(d)) on the day before the effective date of this division 
shall remain in effect until modified, terminated, superseded, 
revoked, or disapproved under the authority of section 5131 of 
this Act.

SEC. 5703. RULES OF CONSTRUCTION.

    (a) Relationship to Title 44, United States Code.--Nothing 
in this division shall be construed to amend, modify, or 
supersede any provision of title 44, United States Code, other 
than chapter 35 of such title.
    (b) Relationship to Computer Security Act of 1987.--Nothing 
in this division shall affect the limitations on authority that 
is provided for in the administration of the Computer Security 
Act of 1987 (Public Law 100-235) and the amendments made by 
such Act.
    And the House agree to the same.
    That the Senate recede from its disagreement to the 
amendment of the House to the title of the bill and agree to 
the same with an amendment as follows:
    In lieu of the House amendment, amend the title so as to 
read: ``An Act to authorize appropriations for fiscal year 1996 
for military activities of the Department of Defense, for 
military construction, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such 
fiscal year for the Armed Forces, to reform acquisition laws 
and information technology management of the Federal 
Government, and for other purposes.''.
    And the House agree to the same.
                                   Floyd Spence,
                                   Bob Stump,
                                   Duncan Hunter,
                                   Herbert H. Bateman,
                                   Curt Weldon,
                                   G.V. Montgomery,
                                   John M. Spratt, Jr.,
                                 Managers on the Part of the House.

                                   Strom Thurmond,
                                   John Warner,
                                   Bill Cohen,
                                   Trent Lott,
                                   Sam Nunn,
                                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 amendments of the House to the bill (S. 1124) to authorize 
appropriations for fiscal year 1996 for military activities of 
the Department of Defense, to prescribe personnel strengths for 
such fiscal year for the Armed Forces, 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 House amendment to the text of the bill struck all of 
the Senate bill after the enacting clause and inserted a 
substitute text.
      The Senate recedes from its disagreement to the amendment 
of the House with an amendment that is a substitute for the 
Senate bill and the House amendment. The differences between 
the Senate bill, the House amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clerical 
changes.
      All references in this joint statement to provisions of 
the House bill refer to the provisions of H.R. 1530 (The 
National Defense Authorization Act for Fiscal Year 1996), as 
passed by the House on June 15, 1995. All references to 
provisions of the Senate amendment refer to the Senate 
amendment to the text of H.R. 1530, as passed by the Senate on 
September 6, 1995.
      The conference report on H.R. 1530 is set forth in House 
Report 104-406. The President vetoed H.R. 1530 on December 28, 
1995.
      In those cases in which the conference agreement requires 
the submission of a report to Congress or a committee of 
Congress, the report shall be submitted not later than the 
later of the date established in the Act or the statement of 
managers language for submission of the report or the date that 
is 45 days after the date of the enactment of this Act. The 
reason for this extension is that, while the conferees expect 
that reports will be submitted in a timely fashion, they 
recognize that the circumstances associated with this 
legislation may in some cases make compliance with deadlines 
impractical. The conferees intend that this authority be used 
sparingly and only in those few cases where an extension in 
filing the report is essential.

                 Summary Statement of Conference Action

      The conferees recommend authorizations for the Department 
of Defense for procurement, research and development, test and 
evaluation, operation and maintenance, working capital funds, 
military construction and family housing, weapons programs of 
the Department of Energy, and civil defense that have a budget 
authority implication of $264.7 billion.

                    Summary Table of Authorizations

      The defense authorization act provides authorizations for 
appropriations but does not generally provide budget authority. 
Budget authority is generally provided in appropriation acts.
      In order to relate the conference recommendations to the 
Budget Resolution, matters in addition to the dollar 
authorizations contained in this bill must be taken into 
account. A number of programs in the defense function are 
authorized permanently or, in certain instances, authorized in 
other annual legislation. In addition, this authorization bill 
would establish personnel levels and include a number of 
legislative provisions affecting military compensation.
      The following table summarizes authorizations included in 
the bill in fiscal year 1996 and, in addition, summarizes the 
implications of the conference action for the budget totals for 
national defense (budget function 050).


Congressional defense committees
      The term ``congressional defense committees'' is often 
used in this statement of the managers. It means the Defense 
Authorization and Appropriations Committees of the Senate and 
House of Representatives.

            DIVISION A: DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          Title I--Procurement

Overview
      The budget request for fiscal year 1996 contained an 
authorization of $39,697.8 million for procurement in the 
Department of Defense. The House bill would authorize $44,117.0 
million. The Senate amendment would authorize $45,043.8 
million. The conferees recommended an authorization of 
$44,878.1 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.


Overview

      The budget request for fiscal year 1996 contained an 
authorization of $1,223.1 million for Aircraft Procurement, 
Army in the Department of Defense. The House bill would 
authorize $1,423.1 million. The Senate amendment would 
authorize $1,396.5 million. The conferees recommended an 
authorization of $1,558.8 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Airborne reconnaissance low
      The budget request included $18.4 million to procure one 
additional aircraft.
      The House bill and the Senate amendment would approve the 
budget request.
      The conferees agree to authorize the budget request and 
express a continued strong support for the Airborne 
Reconnaissance Low (ARL) program, to include the procurement of 
a total of 9 aircraft as soon as possible.
      The conferees expect the Department to evaluate the 
advantages of linking the airborne workstations of the ARL to 
an Unmanned Aerial Vehicle, to provide for airborne analysis 
and assured dissemination of information.
UH-60 Black Hawk helicopter
      The budget request included $526.0 million for the 
procurement of 60 Black Hawk helicopters in the final year of a 
five-year multiyear procurement. No funds were requested for 
advance procurement.
      The House bill would approve the budget request and add 
$75.0 million for advance procurement.
      The Senate amendment would decrease procurement funds to 
$475.8 million to procure 50 helicopters, and would not provide 
funds for advance procurement.
      The conferees agree to authorize $526.0 million for the 
procurement of 60 Black Hawk helicopters and $70.0 million for 
advance procurement. The conferees also agree to provide 
authority for multiyear procurement for the Black Hawk 
helicopter program.
Overview
      The budget request for fiscal year 1996 contained an 
authorization of $676.4 million for Missile Procurement, Army 
in the Department of Defense. The House bill would authorize 
$862.8 million. The Senate amendment would authorize $894.4 
million. The conferees recommended an authorization of $865.6 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Hellfire missile

      The budget request included $197.5 million to procure 352 
Longbow Hellfire missiles and $12.0 million for post-production 
support.
      The House bill and the Senate amendment would provide an 
additional $40.0 million, which when combined with $12.0 
million of post-production funds, would enable the Army to buy 
750 Hellfire II missiles.
      The conferees agree to provide an additional $37.2 
million for the procurement of 750 Hellfire II missiles.

Javelin medium anti-tank weapon

      The budget request included $171.4 million to procure 557 
Javelin missiles.
      The House bill and the Senate amendment would authorize 
an increase of $39.0 million for an additional 453 Javelin 
missiles.
      The conferees agree to authorize an additional $35.5 
million, which when added to the budget request of $171.4 
million, will procure a total of 1,010 Javelin missiles.

TOW missile

      The budget request included $7.4 million for plant 
closure and production support of prior year TOW missile 
deliveries. No funds were requested for additional missile 
production.
      The House bill and the Senate amendment would authorize 
an increase of $20.0 million for procurement of 1,000 TOW 2B 
missiles.
      The conferees agree to authorize an increase of $5.0 
million for procurement of 500 TOW 2B missiles.

Multiple launch rocket system

      The budget request included $48.2 million for annual 
support and fielding of the Army's Multiple Launch Rocket 
System (MLRS), but this amount did not include funding for 
procurement of any new launchers.
      The House bill would authorize an increase of $16.4 
million to procure MLRS launchers to complete equipping a 
National Guard MLRS battalion, for which funds were authorized 
in fiscal year 1995.
      The Senate amendment would authorize an increase of $16.4 
million to complete fielding the same National Guard battalion 
described in the House bill. In addition, the Senate amendment 
would authorize an increase of $48.0 million to recondition 
sufficient MLRS launchers and ancillary equipment for one 
additional National Guard MLRS battalion.
      The conferees agree to authorize $98.6 million to provide 
sufficient reconditioned MLRS launchers and ancillary equipment 
to complete the fielding of the National Guard battalion 
authorized in fiscal year 1995, and to fully equip another 
National Guard battalion in fiscal year 1996.
Overview
      The budget request for fiscal year 1996 contained an 
authorization of $1,298.9 million for Weapons and Tracked 
Combat Vehicles Procurement, Army in the Department of Defense. 
The House bill would authorize $1,359.7 million. The Senate 
amendment would authorize $1,547.9 million. The conferees 
recommended an authorization of $1,652.7 million. Unless noted 
explicitly in the statement of managers, all changes are made 
without prejudice.


Direct support electronic system test sets

      The budget request included $1.5 million for calibration 
of the direct support electronic system test sets (DSESTS).
      The House bill included no additional funding for DSESTS.
      The Senate amendment would authorize an increase of $15.0 
million for additional procurement of DSESTS for M1 Abrams 
series tanks and Bradley infantry fighting vehicles.
      The conferees agree to authorize an increase of $15.0 
million for DSESTS for both procurement and research and 
development, as indicated below:

  Procurement:                                                   Million
    M1 Abrams tank series.........................................  $3.0
    Armored Gun System............................................   6.0
  Research & Development:
    PE23735A Abrams Block Improvements............................   4.0
    PE23735A Armored Gun System...................................   2.0
M113 Carrier modifications
      The budget request included $48.1 million for 
modification of M113 personnel carriers.
      The House bill and the Senate amendment would approve the 
budget request.
      The conferees agree to authorize an increase of $1.6 
million for an additional 12 carrier modification upgrades to 
be used as opposing force vehicles at the National Training 
Center.
M109A6 Paladin 155mm howitzer, self-propelled
      The budget request included $220.2 million for 
retrofitting 215 M109A6 Paladin howitzer systems.
      The House bill and the Senate amendment would approve the 
budget request.
      The conferees agree to authorize an increase of $81.8 
million to procure an additional 48 Paladin retrofits to equip 
two additional National Guard battalions and to retrofit the 
fire control processor for 340 systems.
Improved Recovery Vehicle
      The budget request included $23.5 million to procure nine 
M88A1E1 Improved Recovery Vehicles (IRV).
      The House bill would approve the budget request.
      The Senate amendment would authorize an increase of $33.9 
million to procure an additional 12 IRVs.
      The House recedes.
M1 Abrams tank upgrade program
      The budget request included $473.8 million for 100 M1A2 
tank upgrades for the Army.
      The House bill would approve the budget request.
      The Senate amendment would authorize an increase of 
$110.0 million for 24 additional M1A2 tank upgrades and, in 
accordance with the Statement of Managers accompanying the 
National Defense Authorization Act of Fiscal Year 1995 (H. 
Rept. 103-701), would direct the Army to transfer 24 M1A1 tanks 
to the Marine Corps Reserve.
      The House recedes.
      The conferees continue to support a multiyear procurement 
for M1A2 tank upgrades, as authorized in the National Defense 
Authorization Act of Fiscal Year 1995. However, the conferees 
agree with guidance and direction to the Army Acquisition 
Executive (AAE) regarding the need to maintain an appropriate 
balance between the heavy and medium portions of the tracked 
combat vehicle fleets, included in the Senate report (S. Rept. 
104-112). The conferees expect the AAE to comply with that 
guidance and direction.
Mark-19 universal mounting bracket
      The budget request included $1.4 million for program 
modifications under $2.0 million.
      The Senate amendment would recommend an increase of $1.5 
million to begin initial production of a nondevelopmental 
universal bracket.
      The House bill would authorize the budget request.
      The Senate recedes.
      The conferees encourage the Army to reprogram funds to 
provide $1.5 million to initiate production of a 
nondevelopmental universal mounting bracket for the Mark-19 
automatic grenade launcher.
      The conferees provide $.5 million in PE 64802A to type 
classify this bracket.
Overview
      The budget request for fiscal year 1996 contained an 
authorization of $795.0 million for Ammunition Procurement, 
Army in the Department of Defense. The House bill would 
authorize $1,062.7 million. The Senate amendment would 
authorize $1,120.1 million. The conferees recommended an 
authorization of $1,093.9 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Overview
      The budget request for fiscal year 1996 contained an 
authorization of $2,256.6 million for Other Procurement, Army 
in the Department of Defense. The House bill would authorize 
$2,545.6 million. The Senate amendment would authorize $2,811.1 
million. The conferees recommended an authorization of $2,763.4 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


High mobility multipurpose wheeled vehicle

      The budget request included $57.7 million for 546 high 
mobility multipurpose wheeled vehicles (HMMWVs).
      The House bill would authorize an increase of $39.0 
million to procure approximately 700 additional HMMWVs.
      The Senate amendment would authorize an increase of $72.0 
million to procure approximately 1300 additional HMMWVs.
      The House recedes.
      The conferees agree that additional HMMWVs are required 
for both the Army and the Marine Corps, and expect the military 
services to include in future budget requests adequate funds to 
procure sufficient HMMWVs to meet validated service 
requirements and to meet minimum annual required production 
rates necessary to sustain the essential elements of the HMMWV 
industrial base.

Family of heavy tactical vehicles

      The budget request included $0.6 million for the family 
of heavy tactical vehicles (FHTV).
      The House bill would authorize an increase of $100.0 
million for the FHTV program.
      The Senate amendment would authorize an increase of 
$125.0 million for the FHTV program.
      The House recedes.
      The conferees agree to authorize an increase to the 
budget request of $125.0 million to procure the heavy tactical 
vehicles, as indicated below:

------------------------------------------------------------------------
                                                     Dollars            
                                                       (in      Quantity
                                                    millions)           
------------------------------------------------------------------------
Heavy equipment transporter.......................      $40.0         83
Heavy expanded mobility tactical transporter......       33.0        115
Palletized loading system.........................       52.0        147
------------------------------------------------------------------------

Medium truck extended service program

      The budget request did not include funds for the medium 
truck extended service program (ESP).
      The House bill would not authorize funds for medium truck 
ESP.
      The Senate amendment would authorize $30.0 million for 
medium truck ESP.
      The conferees agree to authorize $20.0 million for medium 
truck ESP. The conferees express their concern regarding the 
possibility of initiating multiple truck remanufacture 
programs, thereby creating excess capacity in the industry. The 
conferees prefer that maximum use be made of the medium truck 
ESP currently underway, that separate, additional procurements 
be kept to a minimum to avoid industrial overcapacity, and 
that, for future procurements, consideration be given to 
reliable manufacturers with demonstrated capabilities to 
produce military trucks.

GUARDRAIL tactical information broadcast service

      The budget request included $48.9 million for the 
GUARDRAIL common sensor program.
      Both the House bill and the Senate amendment would 
authorize funding at the requested level.
      The conferees have determined that there is a need for 
GUARDRAIL aircraft to be equipped with improved intelligence 
data dissemination capability and interoperability with other 
intelligence data producers. Therefore, the conferees agree to 
authorize an increase of $9.0 million to the budget request for 
procurement and integration of tactical information broadcast 
service to provide this capability for existing GUARDRAIL 
aircraft.
Nonsystem training devices
      The budget request included $71.6 million for nonsystem 
training devices.
      The House bill and the Senate amendment authorized the 
request.
      The conferees are concerned that the Army is currently 
training firefighters using fossil-fueled techniques that are 
not only hazardous to the trainees but, in some cases, in 
violation of environmental regulations. Moreover, the conferees 
are aware that there are computer-controlled natural gas/
propane firefighter training systems, currently used by other 
services, that provide safe training for individuals and 
minimize destruction to the environment. Accordingly, the 
conferees authorize $4.5 million to procure an initial set of 
these systems.
      Further, the conferees believe that the Army should 
develop a plan to replace current firefighting training sites 
in regions where multiple commands can take advantage of a 
single site.
Overview
      The budget request for fiscal year 1996 contained an 
authorization of $3,886.5 million for Aircraft Procurement, 
Navy in the Department of Defense. The House bill would 
authorize $4,106.5 million. The Senate amendment would 
authorize $4,916.6 million. The conferees recommended an 
authorization of $4,572.4 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


AV-8B remanufacture

      The budget request included $148.2 million for the 
remanufacture of four Marine Corps AV-8B aircraft.
      The House bill would add $160.0 million for the 
remanufacture of eight additional aircraft.
      The Senate amendment would authorize an additional $100.0 
million for the remanufacture of four more aircraft.
      The conferees agree to authorize a total of $229.4 
million, $81.3 million above the budget request, for the 
remanufacture of four additional aircraft.

Electronic warfare

      The budget request included no funds to either expand the 
Navy's fleet of EA-6B Block 89 aircraft to accommodate the 
retirement of the EF-111 jammer aircraft or to improve the 
capabilities of the existing Block 89 EA-6B fleet.
      The House bill would approve the budget request.
      The Senate amendment would authorize $216.0 million to 
modernize airborne electronic warfare (EW) capabilities of the 
EA-6B Block 89 aircraft and to expand the number of Block 89 
aircraft by 20.
      The conferees agree that modernization of the 
Department's tactical electronic warfare aircraft fleet is a 
priority item of special interest. Accordingly, the conferees 
agree to authorize $165.0 million to initiate procurement of 
EA-6B modifications, as set forth below:
            (1) $100.0 million to modernize up to 20 older EA-
        6B Block 82 aircraft to the newer Block 89 
        configuration to offset EF-111 retirements;
            (2) $40.0 million to procure 60 band 9/10 
        transmitters; and
            (3) $25.0 million for 30 USQ-113 enhanced radio 
        countermeasure sets.
      The conferees also authorize an increase of $10.0 million 
to Navy EW development (PE 64270N), to develop a low-cost, 
reactive jamming capability for the EA-6B. The conferees are 
especially interested in the Navy's completion of an affordable 
upgrade to the EA-6B reactive processor capability.
      The conferees note the inconsistent nature of the Navy's 
actions regarding airborne tactical EW in recent years and are 
deeply concerned with the Navy's vacillating commitment and 
support for meaningful upgrades to the EA-6B aircraft. 
Accordingly, the Secretary of the Navy is directed to:
            (1) initiate the EA-6B modifications identified 
        above.
            (2) provide the congressional defense committees 
        with the following:
                    (a) a program and budget plan for 
                completing the directed modifications.
                    (b) the Joint Tactical Airborne EW Study 
                (JTAEWS).
      In addition, the conferees agree that the Secretary of 
the Navy shall not obligate more than 75 percent of funds 
appropriated for procurement of the F/A-18C/D for fiscal year 
1996 until he has accomplished the actions specified above.
F-14 modifications
      The budget request included $59.0 million for F-14 
modifications. This amount did not include any funds for a 
forward-looking infrared (FLIR)/laser designator system for the 
F-14. The budget request included $25.4 million in research and 
development funds for a precision strike upgrade, an effort to 
integrate the joint direct attack munition (JDAM) into the F-
14.
      The House bill would approve the budget request for F-14 
modifications.
      After completion of the House bill, the Navy informed the 
Senate that the requirements validation process had documented 
an operational requirement for a FLIR/laser designator system 
for the F-14, in lieu of the JDAM integration. The Senate 
considered this requirement to be a high priority for carrier 
operations. Therefore, the Senate amendment would authorize an 
increase of $17.1 million for F-14 aircraft modifications in 
fiscal year 1996. This action was taken with the understanding 
that the Department of Defense would provide funding for the 
system in future budget requests.
      The conferees agree to provide $101.5 million for F-14 
modifications, with an increase of $42.5 million provided for 
the FLIR/laser designator effort. The conferees also agree to 
reduce the F-14 research and development request by $25.4 
million.
      Additionally, the conferees agree to invite the Navy to 
reprogram funds originally authorized for JDAM integration into 
the FLIR/laser designator procurement effort, to expedite 
meeting the need for improving F-14 strike capability.
Overview
      The budget request for fiscal year 1996 contained an 
authorization of $1,787.1 million for Weapons Procurement, Navy 
in the Department of Defense. The House bill would authorize 
$1,626.4 million. The Senate amendment would authorize $1,771.4 
million. The conferees recommended an authorization of $1,659.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Overview

      The budget request for fiscal year 1996 contained an 
authorization of $5,051.9 million for Shipbuilding and 
Conversion Procurement, Navy in the Department of Defense. The 
House bill would authorize $6,227.9 million. The Senate 
amendment would authorize $7,111.9 million. The conferees 
recommended an authorization of $6,643.9 million. Unless noted 
explicitly in the statement of managers, all changes are made 
without prejudice.


Overview
      The budget request for fiscal year 1996 contained no 
authorization for Ammunition Procurement, Navy and Marine Corps 
in the Department of Defense. The House bill would authorize 
$461.8 million. The Senate amendment contained no 
authorization. The conferees recommended an authorization of 
$430.1 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.


Overview
      The budget request for fiscal year 1996 contained an 
authorization of $2,396.1 million for Other Procurement, Navy 
in the Department of Defense. The House bill would authorize 
$2,461.5 million. The Senate amendment would authorize $2,471.9 
million. The conferees recommended an authorization of $2,414.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Submarine navigation sets

      The budget request included $4.1 million for the 
electrically suspended gyro navigator (ESGN), the navigation 
system currently installed on Navy submarines. It also included 
$17.7 million for other navigation equipment.
      The House bill would reduce ESGN funding by $4.1 million 
and increase funding for other navigation equipment by $10.0 
million to purchase and install MK-49 ring laser gyro (RLG) 
navigators on Navy submarines.
      The Senate amendment would reduce ESGN funding by $2.5 
million, the amount budgeted for ESGN reliability 
modifications. It would also increase funding for other 
navigation equipment by $10.0 million to purchase and install 
MK-49 RLG navigators on Navy submarines.
      The Senate recedes.

AN/BPS-16 submarine radar

      The budget request included $0.5 million for ship radar 
support.
      The House bill would add $9.0 million for procurement of 
AN/BPS-16 submarine radar systems because of a concern about 
the reliability and operational suitability of the existing AN/
BPS-15 submarine navigation radar.
      The Senate amendment would authorize the budget request.
      The conferees are aware that there is a commercial off-
the-shelf (COTS) variant of the AN/BPS-16 that could be 
procured and installed at a substantially lower cost than the 
AN/BPS-16 built to military specifications. The conferees are 
also aware that the reliability and maintenance challenges 
associated with the existing AN/BPS-15 have induced many Navy 
submarine crews to procure inexpensive commercial navigation 
radars with limited capability.
      Based on these considerations, the conferees agree to 
authorize an increase of $9.0 million for the procurement and 
installation of AN/BPS-16 submarine radar sets. The conferees 
encourage the Navy to take advantage of the new COTS variant of 
the AN/BPS-16 to achieve the maximum benefit from this 
additional funding.

Afloat planning system

      The conferees have fully supported the Tomahawk cruise 
missile program and the associated support systems necessary 
for employment of Tomahawk for precision strike missions. The 
conferees note that the Tomahawk afloat planning system (APS) 
complements the Tomahawk mission planning system, located at 
the shore-based mission planning centers, and provides afloat 
battle group and battle force commanders or deployed joint 
staffs with an organic capability to plan for the tactical 
employment of the conventional Tomahawk land attack missile 
(TLAM). APS is also an integral part of the Joint Service 
Imagery Processing System--Navy (JSIPS-N) and Challenge Athena 
systems. These systems support Tomahawk strike planning, but 
can also provide mission planning support for other precision 
guided munitions.
      The conferees encourage the Department of Defense to:
            (1) continue support and funding for APS; and
            (2) consider extending APS's targeting and mission 
        planning capabilities to other tactical command 
        echelons, in order to meet the expanding requirement 
        for tactical utilization of the Tomahawk system and 
        improve its responsiveness to the demands of land 
        battle.

Overview

      The budget request for fiscal year 1996 contained an 
authorization of $474.1 million for Marine Corps Procurement, 
Navy in the Department of Defense. The House bill would 
authorize $399.2 million. The Senate amendment would authorize 
$683.4 million. The conferees recommended an authorization of 
$458.9 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.


Commander's Tactical Terminal
      The budget request included no funding for USMC 
procurement of Commander's Tactical Terminal (CTT) radios.
      Neither the House bill nor the Senate amendment 
authorized additional funding for CTT radios.
      The conferees note that the Department's integrated 
(intelligence) broadcast service plan included migration to an 
interoperable family of transceivers known as the Joint 
Tactical Terminal. The conferees have been informed that Marine 
Corps procurement of CTTs will play a vital role in this plan, 
and therefore authorize an increase of $12.5 million for this 
purpose.
Marine Corps intelligence support equipment
      The budget request included no funding for Marine Corps 
procurement of Joint Surveillance and Target Attack Radar 
System (JSTARS) ground support module.
      Neither the House bill nor the Senate amendment included 
additional funds for this purpose.
      The conferees believe the Marine Corps should have more 
responsibility over its own procurement actions, and therefore 
agree to authorize an increase of $16.5 million for Marine 
procurement of two JSTARS ground support modules.
Light reconnaissance/strike vehicles
      The budget request did not include funds for procurement 
of any light reconnaissance/strike vehicles (LRV/LSV).
      The House bill would add $2.0 million to buy LRVs for the 
Marine Corps and $6.0 million to buy LSVs for the special 
operations forces.
      The conferees agree to authorize $6.0 million for LSVs 
for the special operations forces.
      The conferees understand that the Marine Corps has 
completed a mission needs statement (MNS) for an LRV. The MNS 
calls for fielding an LRV with the Fleet Marine Forces by 
fiscal year 1995. However, the Marine Corps has neither 
established a formal requirement nor budgeted any resources 
against a possible requirement.
      Therefore, the conferees direct the Secretary of the Navy 
to report to the congressional defense committees on whether 
the Marine Corps will translate the MNS into an operational 
requirement and the risks the Fleet Marine Force will incur if 
an LRV is not procured. The conferees expect the Secretary to 
submit this report by February 28, 1996.
Overview
      The budget request for fiscal year 1996 contained an 
authorization of $6,183.9 million for Aircraft Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $7,032.0 million. The Senate amendment would 
authorize $6,318.6 million. The conferees recommended an 
authorization of $7,349.8 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Air Force fighter aircraft data link

      The budget request included $79.5 million for F-15 
modifications.
      The House bill would authorize the requested amount based 
on assurances from the Department of Defense that Air Force 
efforts to procure a tactical information data link for a 
portion of the F-15 fleet would be conducted within the scope 
of the Department's multifunction information distribution 
system (MIDS) program.
      The Senate amendment would authorize the budget request. 
The Senate report (S. Rept. 104-112) expressed support for the 
Air Force's efforts to equip its fighter aircraft with ``Link 
16'' data link capability, but questioned the Air Force's 
decision to pursue this capability for only a portion of the F-
15 fleet. The Senate report also recommended that the 
Department continue MIDS acquisition and stated that it would 
not support any Air Force effort to start a new program, 
redundant to MIDS, to meet similar requirements.
      The conferees note that the Under Secretary of Defense 
for Acquisition and Technology has terminated the F-15 data 
link procurement and that the Air Force now intends to pursue a 
MIDS variant data link to meet its requirements. The Department 
has informed the conferees that this program is to be a 
competitive solicitation that will require adherence to the 
MIDS architecture, MIDS software modularity, and MIDS hardware 
modulatory as a design objective, and, for the F-15, reduced 
hardware and software functionality to reduce costs.
      The conferees agree to authorize $78.3 million for F-15 
modifications. The conferees direct the Under Secretary of 
Defense for Acquisition and Technology to ensure that the 
Department uses a competitive acquisition strategy for fighter 
data link procurement. The strategy should promote full 
opportunity for U.S. companies to compete within the 
competitive solicitation outlined by the Under Secretary.

Defense support program procurement

      The budget request included $102.9 million for Defense 
Support Program (DSP) procurement.
      The Senate amendment would authorize $67.0 million, a 
reduction of $35.9 million to the budget request.
      The House bill would authorize the budget request.
      The House recedes. The conferees are aware that $35.9 
million in fiscal year 1995 funds are excess and subject to 
consideration for reprogramming for non-DSP purposes. 
Therefore, the conferees agree to reduce the fiscal year 1996 
DSP procurement budget by $35.9 million, leaving $67.0 million. 
The conferees direct the Air Force to use the excess fiscal 
year 1995 funds currently identified as a source on the fiscal 
year 1995 omnibus reprogramming request to fulfill fiscal year 
1996 DSP requirements. Given that the fiscal year 1995 DSP 
procurement source has been denied as part of this year's 
omnibus reprogramming, the conferees direct that the full 
amount be restored to DSP.

RC-135 re-engining

      The budget request included no funding for the Defense 
Airborne Reconnaissance Program (DARP) modifications line (P-1, 
line 57) in the Aircraft Procurement, Air Force account.
      The House bill would authorize an increase of $37.0 
million for modification of an existing C-135 aircraft to the 
RC-135 RIVET JOINT configuration.
      The Senate amendment would authorize an increase of $48.0 
million for re-engining of two existing RIVET JOINT aircraft. 
The Senate amendment would also authorize an increase of $31.5 
million in PE 64268F for non-recurring integration activity to 
facilitate an affordable program for converting two retired EC-
135 aircraft to the RIVET JOINT configuration.

                        engines and installation

      The conferees concur with the cost effectiveness and 
increase in operational effectiveness that could be provided by 
re-engining the existing fleet of RIVET JOINT aircraft and 
agree to authorize an increase of $48.0 million to procure and 
install re-engining kits for two existing RIVET JOINT aircraft.
      The conferees note that the theater Commanders-in-Chief 
(CINCs) have addressed additional RIVET JOINT aircraft as one 
of their highest intelligence priorities. The need for 
additional RIVET JOINT aircraft is further reinforced by the 
extremely high operational tempo currently experienced by this 
reconnaissance asset. The conferees support the theater CINCs' 
requirements for additional RIVET JOINT aircraft and strongly 
urge the Department to seek reprogramming authority to modify 
other existing C-135 assets to the RC-135 configuration.

                                 sr-71

      The conferees agree to provide an additional $5.0 million 
for costs associated with the refurbishment of SR-71 aircraft.

                  engine component improvement program

      The conferees agree to authorize $133.2 million for the 
engine component improvement program, an increase of $29.5 
million, consisting of two adjustments: (1) an additional $31.5 
million for the integration activity described in the Senate 
report (S. Rept. 104-112); and (2) a reduction of the $2.0 
million requested for the B-2 engine.

Overview

      The budget request for fiscal year 1996 contained an 
authorization of $3,647.7 million for Missile Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $3,430.1 million. The Senate amendment would 
authorize $3,627.5 million. The conferees recommended an 
authorization of $2,938.9 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Overview

      The budget request for fiscal year 1996 contained no 
authorization for Ammunition Procurement, Air Force in the 
Department of Defense. The House bill would authorize $321.3 
million. The Senate amendment contained no authorization. The 
conferees recommended an authorization of $343.8 million. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Overview
      The budget request for fiscal year 1996 contained an 
authorization of $6,804.7 million for Other Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $6,784.8 million. The Senate amendment would 
authorize $6,516.0 million. The conferees recommended an 
authorization of $6,268.4 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Overview
      The budget request for fiscal year 1996 contained an 
authorization of $2,179.9 million for Defense-wide Procurement 
in the Department of Defense. The House bill would authorize 
$2,205.9 million. The Senate amendment would authorize $2,118.3 
million. The conferees recommended an authorization of $2,124.4 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Defense airborne reconnaissance program procurement

      The budget request included $179.3 million in procurement 
for the Defense airborne reconnaissance program (DARP).
      The House bill would approve the budget request.
      The Senate amendment would increase the requested amount 
by $4.5 million, and would direct the Department to change the 
priorities of some program elements. The conferees agree to an 
authorization of $161.6 million, a reduction of $17.7 million 
from the budget request.

                           joint tactical uav

      The conferees agree to authorize a total of $42.4 million 
for the joint tactical UAV (JT-UAV), a reduction of $17.7 
million from the budget request.
      The conferees are particularly concerned about the 
continuing problems with the Hunter UAV in the JT-UAV program. 
Therefore, the conferees direct that none of the funds 
appropriated for fiscal year 1996 be used to procure production 
Hunter systems or additional low-rate initial production units, 
beyond those already ordered, until the Secretary of Defense 
provides to the Congressional defense committees the results of 
the Defense Acquisition Board (DAB) review of the Hunter 
program.

                              pioneer uav

      Of the funds authorized and appropriated for defense-wide 
procurement, Defense Airborne Reconnaissance Programs (DARP), 
the conferees direct that the Department use $4.5 million to 
equip nine Pioneer UAV systems with the common automatic 
landing and recovery system (CARLS).
      The conferees note the Department's continuing failure to 
equip UAVs with the CARLS system. The conferees are concerned 
with this result, particularly since the Department agrees that 
CARLS installation on UAVs in general, and Pioneer in 
particular, would reduce landing accidents and associated 
losses.
Automated document conversion system
      The budget request did not include any additional funds 
for the automated document conversion system (ADCS). This is a 
program for converting the Department of Defense's engineering 
drawings from hard copy to electronic format.
      The House bill would authorize $20.0 million for this 
purpose.
      The Senate amendment would approve the budget request.
      The conferees are concerned with the lack of progress by 
the Department toward achieving major cost savings through the 
adoption of automated document conversion technology. The 
conferees are encouraged, however, that the Department has 
recently acknowledged such savings and has produced a roadmap 
to realize these savings by changing from raster to vector 
conversion. The conferees also understand this plan brings an 
upgrade and expansion of UNIX-based systems and will test 
several personal computer (PC)-based systems.
      However, the conferees are concerned with the 
Department's plan for using $10.0 million of these funds for 
``bulk'' conversion purposes, since these funds were 
specifically appropriated for the purchase of ADCS equipment. 
The conferees are concerned that there may be a greater 
requirement for ADCS software and equipment than the Department 
currently has planned and that some or all of the funds planned 
for bulk conversion may be needed for software and equipment. 
Should the results of the Department's ongoing conversion 
survey confirm that additional software and equipment is 
needed, the conferees feel that the Department should address 
first the needs of UNIX-based engineering systems as the UNIX-
based system has undergone extensive testing per Congressional 
direction. The conferees direct that the Secretary of Defense 
provide a report to the congressional defense committees by 
March 29, 1996, on the results of the PC-based system testing.
Overview
      The budget request for fiscal year 1996 contained no 
authorization for National Guard and Reserve Procurement in the 
Department of Defense. The House bill would authorize $770.0 
million. The Senate amendment would authorize $777.4 million. 
The conferees recommended an authorization of $777.0 million. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Overview
      The budget request for fiscal year 1996 contained an 
authorization of $746.7 million for Chemical Agent and 
Munitions Destruction, Army in the Department of Defense. The 
House bill would authorize $746.7 million. The Senate amendment 
would authorize $671.7 million. The conferees recommended an 
authorization of $672.3 million. Unless noted explicitly in the 
statement of managers, all changes are made without prejudice.


                       items of special interest

Aerial targets

      The budget request included $68.6 million for aerial 
targets.
      The House bill and the Senate amendment authorized the 
request.
      The conferees understand the Navy's current acquisition 
strategy for subscale subsonic aerial targets is to procure 
only the BQM-74E. However, the conferees understand the 
contractor may have taken some recent cost reduction 
initiatives on the BQM-34S subscale target. Therefore, the 
conferees believe that the Navy's non-competitive procurement 
of the BQM-74E may not provide the service with the best value 
target. Accordingly, the conferees urge the Navy to reassess 
its acquisition strategy for this target and conduct a 
competition based upon meeting a performance specification. The 
conferees believe that such a competition could result in 
buying a target that truly represents the best value to the 
Navy.

AN/ALE-47

      The conferees are concerned that the current Air Force 
acquisition strategy for the follow-on production of lots IV 
through VII of the AN/ALE-47 Countermeasure Dispenser System 
may involve significant and unnecessary risks for the program. 
The conferees direct the Air Force to delay any procurement 
action regarding lots IV through VII of the AN/ALE-47 until 14 
days after the date on which the Air Force has provided the 
congressional defense committees with a report that assesses 
the cost and acquisition strategy related to the introduction 
of new suppliers for the system.

Engineer construction equipment

      The conferees are aware of the significant contribution 
National Guard engineer construction units have made to 
securing the southwest border. The construction efforts of the 
National Guard have been of singular assistance in providing 
for increased safety for U.S. Border Patrol agents and in 
facilitating the U.S. Border Patrol efforts to counter illegal 
drugs and illegal immigration along the southwest border. The 
conferees agree that sufficient funds should be allocated by 
the National Guard to purchase appropriate loaders, dozers, and 
road-grading equipment for use by National Guard engineer 
construction units that rotate to continue construction on 
projects along the United States-Mexican border.
      The conferees have indicated elsewhere in this statement 
of managers, that the Department of Defense should, through 
normal reprogramming procedures, use available funds provided 
for counterdrug activities to continue construction to extend 
the fence constructed by the National Guard on the southwest 
border.
LPD-17 radio communications systems 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.
SH-60 modifications
      The conferees understand that there are at least 60 AN/
AQS-13F dipping sonars currently installed in the Navy's SH-60F 
helicopters that will not be replaced under the SH-60R program. 
These sonars could be upgraded to meet current shallow water 
operational requirements based on a modification already 
developed through the FMS program.
      The conferees direct the Secretary of the Navy to 
evaluate the cost effectiveness of a modification program for 
the AQS-13F dipping sonars that will not be replaced in 
conjunction with the SH-60R program, and report the results to 
the congressional defense committees by March 15, 1996.

                         legislative provisions

                     legislative provisions adopted

              Subtitle A--Authorization of Appropriations

                       Subtitle B--Army Programs

Procurement of OH-58D Armed Kiowa Warrior helicopters (sec. 111)
      The House bill contained a provision (sec. 111) that 
would modify current law to permit procurement of twenty 
additional OH-58D AHIP scout helicopters.
      The Senate amendment contained an identical provision 
(sec. 122).
      The conferees understand that the procurement of twenty 
additional OH-58D Armed Kiowa Warrior helicopters will cost up 
to $140.0 million and agree to amend the provision to authorize 
$140.0 million to procure these helicopters.
Repeal of requirements for armored vehicle upgrades (sec. 112)
      The House bill contained a provision (sec. 112) that 
would repeal subsection (j) of section 21 of the Arms Export 
Control Act (22 U.S.C. 2761).
      The Senate amendment contained no similar provision.
      The Senate recedes.
Multiyear procurement of helicopters (sec. 113)
      The budget request included $354.0 million to buy 18 AH-
64D aircraft and 13 Longbow fire control radars.
      The House bill would authorize the budget request.
      The Senate amendment contained a provision (sec. 111) 
that would authorize an increase of $82.0 million and the 
multiyear procurement of Longbow Apache helicopters.
      The House recedes with an amendment.
      The conferees agree to authorize an increase of $76.2 
million for the Longbow Apache attack helicopter program and 
multiyear procurement contracts for both the AH-64D Longbow 
Apache attack helicopter program and the UH-60 Black Hawk 
utility helicopter program.
Report on AH-64D engine upgrades (sec. 114)
      The Senate amendment contained a provision (sec. 114) 
that would require the Secretary of the Army to submit a report 
to Congress on plans to procure T700-701C engine upgrade kits 
for Army AH-64D helicopters.
      The House bill contained no similar provision.
      The House recedes.
Requirement for use of previously authorized multiyear procurement 
        authority for Army small arms procurement (sec. 115)
      The budget request did not include any funds for 
procurement of small arms.
      The House bill and the Senate amendment would authorize 
funds for the following small arms programs as indicated below:

------------------------------------------------------------------------
                                                         House    Senate
------------------------------------------------------------------------
M-16 rifle............................................    $13.5    $13.5
M4 carbine............................................      6.5     13.5
M9 personal defense weapon............................      2.0      4.0
M249 squad automatic weapon...........................     28.5     28.5
MK-19 grenade launcher................................     20.0     33.9
Medium machine gun (mod kits).........................      6.5      6.5
------------------------------------------------------------------------

      The conferees agree to provide funds for small arms 
programs as indicated below:

------------------------------------------------------------------------
                                                      Dollars           
                                                    (millions)  Quantity
------------------------------------------------------------------------
M-16 rifle........................................      $13.5     27,500
M4 carbine........................................        6.5     12,000
M9 personal defense weapon........................        2.0      4,660
M249 squad automatic weapon.......................       28.5     10,265
MK-19 grenade launcher............................       33.9      2,100
Medium machine gun (mod kits).....................        6.5      1,434
------------------------------------------------------------------------

      The conferees express their concern that the Army did not 
include funds for small arms programs in the fiscal year 1996 
budget request, despite specific direction regarding multiyear 
procurement for small arms included in the Statement of 
Managers accompanying the National Defense Authorization Act 
for Fiscal Year 1995 (S. Rept. 103-701). The conferees expect 
the Secretary of the Army to comply with both the letter and 
intent of the law in this regard. The conferees further expect 
the Secretary of the Army to ensure that small arms programs 
are funded at levels approximating those in this report until 
requirements for each separate class of small arms are fully 
achieved and that appropriate multiyear contracts are executed. 
The conferees include a provision (sec. 116) that would direct 
the Secretary of the Army to enter into multiyear procurement 
contracts during fiscal year 1997, in accordance with section 
115(b)(2) of the National Defense Authorization Act for Fiscal 
Year 1995.

                       Subtitle C--Navy Programs

Nuclear attack submarines (sec. 131)

      The budget request reflected a policy, adopted by the 
Department of Defense as a consequence of its Bottom Up Review, 
that would cause all future nuclear submarines to be 
constructed by General Dynamics Electric Boat Division 
(Electric Boat). The budget request included the following 
funding for submarine construction programs:
            (1) $1.5 billion for SSN-23, the final increment 
        required for full funding of this Seawolf class 
        submarine;
            (2) $704.5 million advance procurement for the 
        first of a new class of nuclear attack submarines, 
        designated as the new attack submarine (NAS), whose 
        construction would begin in fiscal year 1998; and
            (3) a total of $455.4 million for research, 
        development, test, and evaluation for the NAS program.
      The House report (H. Rept. 104-131) reflected the view 
that changes in the Navy's plan for acquisition of nuclear 
attack submarines should be made to incorporate advanced 
technologies into these submarines' designs. These 
recommendations were based on an underlying premise that the 
Navy's NAS program would not provide an adequate technological 
advantage over foreign submarines presently under construction 
or in design. The House bill would:
            (1) not authorize SSN-23;
            (2) authorize $550.0 million for Electric Boat to 
        design, build, and incorporate a hull section into SSN-
        22 to create a lengthened, expanded capability variant 
        of the basic Seawolf design, while retaining its full 
        weapons load;
            (3) authorize $704.5 million advance procurement 
        for the fiscal year 1998 submarine that would be built 
        by Electric Boat;
            (4) authorize $300.0 million for Electric Boat to 
        design and build a second hull section that would be 
        incorporated into a fiscal year 1998 submarine, and 
        convert that submarine from the lead ship of a serial-
        production class, based on the current NAS design, into 
        an additional, one-of-a-kind, expanded capability 
        platform that would be derived from the current NAS 
        design;
            (5) directs that $10.0 million of the funds in the 
        budget request for NAS detailed design work be used 
        only for establishing and maintaining a cadre of 
        Newport News submarine designers at Electric Boat and 
        for transfer of all NAS design data from Electric 
        Boat's design data base to Newport News';
            (6) authorize $150.0 million to begin an effort at 
        Newport News to design, develop, and build prototype 
        versions of major submarine components that would 
        result in a follow-on submarine design for serial 
        production that represents a substantial improvement in 
        affordability and capability over the current NAS 
        design;
            (7) direct the Advanced Research Projects Agency 
        (ARPA) and the national laboratories to make new 
        technologies available to both Electric Boat and 
        Newport News that show potential for achieving a 
        follow-on submarine design for serial production that 
        represents a substantial improvement over the current 
        NAS design; and
            (8) include a provision (sec. 133) that would 
        direct the Secretary of the navy to award, on a 
        competitive basis, contracts for attack submarines 
        built after the fiscal year 1998 submarine.
      The Senate amendment reflected an alternate view on how 
to acquire nuclear attack submarines. It contained a provision 
(sec. 121) that would:
            (1) authorize the SSN-23 at $1.5 billion, the 
        budget request;
            (2) limit the ability of the Secretary of the Navy 
        to obligate or expend funds for SSN-23 until he 
        restructures the NAS program to provide for:
                    (a) procurement of the lead NAS from 
                Electric Boat in fiscal year 1998;
                    (b) procurement of the second NAS from 
                Newport News Shipbuilding and Drydock (Newport 
                News) in fiscal year 1999; and
                    (c) competitive procurement of any 
                additional NAS vessels after the second. 
                Potential competitors for these additional 
                vessels would be contractors that have been 
                awarded a contract by the Secretary of the Navy 
                for construction of nuclear attack submarines 
                during the past 10 years;
            (3) place additional limits on the total amount of 
        funds that may be expended for SSN-23 in fiscal years 
        1996, 1997, 1998, and 1999;
            (4) direct the Secretary of the Navy to solicit 
        competitive proposals and award the contract or 
        contracts for NAS, after the second NAS, on the basis 
        of price;
            (5) direct the Secretary of the Navy to take no 
        action that would impair the design, engineering, 
        construction, and maintenance competencies of either 
        Electric Boat or Newport News to construct the NAS;
            (6) direct the Secretary of the Navy to report 
        every six months to the Committee on Armed Services of 
        the Senate and the Committee on National Security of 
        the House the obligation and expenditure of funds for 
        SSN-23 and the NAS;
            (7) authorize $814.5 million in fiscal year 1996 
        for design and advance procurement of the lead and 
        second NAS, of which $10.0 million would be available 
        only for participation of Newport News in the NAS 
        design, and $100.0 million would be available only for 
        advance procurement and design of the second submarine 
        under the NAS program;
            (8) place limits on the expenditure of advance 
        procurement funds in fiscal year 1996 for the lead NAS, 
        unless funds are also obligated or expended for the 
        second NAS;
            (9) authorized $802.0 million in fiscal year 1997 
        for advance procurement of the lead and second NAS, of 
        which $75.0 million would be available only for 
        participation by Newport News in the design of the NAS, 
        and $427.0 million would be available only for advance 
        procurement and design of the second submarine under 
        the NAS program; and
            (10) authorized $455.4 million, the budget request, 
        for research, development, test, and evaluation for the 
        NAS program.
      The conferees agree to adopt a new provision dealing with 
the design and procurement of future Navy attack submarines. 
This provision would:
            (1) authorize the SSN-23 at $700.0 million;
            (2) authorize $804.5 million in fiscal year 1996 
        for design and advance procurement of the fiscal year 
        1998 and fiscal year 1999 submarines (previously 
        designated by the Navy as the NAS), of which;
                    (a) $704.5 million would be available only 
                for long-lead and advance construction and 
                procurement for the fiscal year 1998 submarine, 
                which would be built by Electric Boat; and
                    (b) $100.0 million would be available only 
                for long-lead and advance construction and 
                procurement for the fiscal year 1999 submarine, 
                which would be built by Newport News;
            (3) authorize $10.0 million only for participation 
        of Newport News in the design of the submarine 
        previously designated by the Navy as the NAS;
            (4) establish a special bipartisan congressional 
        panel that would be briefed, at least annually, by the 
        Secretary of the Navy on the status of the submarine 
        modernization program and submarine-related research 
        and development;
            (5) direct the Secretary of Defense, not later than 
        March 15, 1996, to accomplish the following:
                    (a) develop and submit a detailed plan for 
                development of a program that will lead to 
                production of more capable, less expensive 
                submarines than the submarine previously 
                designated as the NAS;
                    (b) ensure the plan includes a program for 
                the design, development, and procurement of 
                four nuclear attack submarines that would be 
                procured during fiscal years 1998 through 2001 
                with each successive submarine being more 
                capable and more affordable;
                    (c) structure the program so that:
                            (i) one of the four submarines 
                        would be constructed with funds 
                        appropriated for each fiscal year from 
                        fiscal year 1998 through fiscal year 
                        2001;
                            (ii) to ensure flexibility for 
                        innovation, the fiscal year 1998 and 
                        the fiscal year 2000 submarines would 
                        be constructed by Electric Boat and the 
                        fiscal year 1999 and the fiscal year 
                        2001 submarines would be constructed by 
                        Newport News;
                            (iii) the design previously 
                        designated as the NAS would be used as 
                        the base design by both contractors:
                            (iv) each contractor would be 
                        called on to propose improvements, 
                        including design improvements, for each 
                        successive submarine so that each of 
                        them would be more capable, more 
                        affordable, and their design would lead 
                        to a design for a future class of 
                        nuclear attack submarines that would 
                        possess the latest, best, and most 
                        affordable technology; and
                            (v) the fifth and subsequent 
                        nuclear attack submarines, proposed for 
                        construction after SSN-23, would be 
                        procured after a competition based on 
                        price;
                    (d) the Secretary of Defense's plan would 
                also:
                            (i) set forth a program to 
                        accomplish the design, development, and 
                        construction of the four submarines 
                        that would take maximum advantage of a 
                        streamlined acquisition process;
                            (ii) culminate in selection of a 
                        design for a next submarine for serial 
                        production not earlier than fiscal year 
                        2003 with procurement to occur after a 
                        competition based on price;
                            (iii) identify advanced 
                        technologies that are in various phases 
                        of research and development, as well as 
                        those that are commercially available 
                        off-the-shelf, that are candidates for 
                        incorporation into the plan to design, 
                        develop, and procure the submarines;
                            (iv) designate the fifth submarine 
                        procured after SSN-23 to be the lead 
                        ship in a next generation submarine 
                        class, unless the Secretary of the 
                        Navy, in consultation with the special 
                        congressional submarine review panel, 
                        determines that more submarines should 
                        be built before the design of a new 
                        class of submarines is fixed, in which 
                        case the fifth and each successive 
                        submarine would be procured after a 
                        competition based on price; and
                            (v) identify the impact of the 
                        submarine program on the remainder of 
                        the Navy's shipbuilding account;
            (6) impose certain limits on the amounts that can 
        be obligated and expended on the SSN-23 and the fiscal 
        year 1998 and 1999 submarines until:
                    (a) the Secretary of the Navy has certified 
                in writing to the Committee on Armed Services 
                of the Senate and the Committee on National 
                Security of the House that procurement of 
                future nuclear attack submarines, except as 
                stipulated elsewhere in this provision, would 
                be accomplished through a competition based on 
                price; and
                    (b) the Secretary of Defense, not later 
                than March 15, 1996, has:
                            (i) submitted the submarine design 
                        and procurement plan that would be 
                        required by the provision;
                            (ii) directed the Under Secretary 
                        of Defense (Comptroller) to incorporate 
                        the costs of the submarine design and 
                        procurement plan into the future years 
                        defense program, even if the total cost 
                        of the plan's program exceeds the 
                        President's budget; and
                            (iii) directed that the Under 
                        Secretary of Defense for Acquisition 
                        and Technology conduct oversight of the 
                        development and improvement of the 
                        nuclear attack submarine program of the 
                        Navy and established reporting 
                        procedures to ensure that officials of 
                        the Department of the Navy, who 
                        exercise management oversight of the 
                        program, report to the Under Secretary 
                        of Defense for Acquisition and 
                        Technology with respect to that 
                        program;
            (7) direct the Secretary of Defense to use 
        streamlined acquisition policies to reduce the cost and 
        increase the efficiency of the submarine program;
            (8) direct the Secretary of Defense to submit to 
        Congress an annual update of the submarine design and 
        procurement plan with the submission of the President's 
        budget, for each of fiscal years 1998 through 2002;
            (9) direct that funds authorized for fiscal year 
        1996 by this provision may not be obligated or expended 
        during fiscal year 1996 for the fiscal year 1998 
        submarine unless funds are also obligated and expended 
        during fiscal year 1996 for the fiscal year 1999 
        submarine;
            (10) authorize the Secretary of the Navy to enter 
        into contracts with Electric Boat and Newport News, and 
        suppliers of components during fiscal year 1996 for:
                    (a) the procurement of long-lead components 
                for the fiscal year 1998 submarine and the 
                fiscal year 1999 submarine; and
                    (b) advance construction of long-lead 
                components and other components for such 
                submarines;
            (11) authorize that, of the amount provided in 
        section 201(4) of this Act for ARPA, that $100.0 
        million would be available only for development and 
        demonstration of advanced technologies for 
        incorporation into the submarines constructed as part 
        of the submarine design and procurement plan specified 
        under this provision, to include electric drive, 
        hydrodynamic quieting, ship control automation, solid-
        state power electronics, wake reduction technologies, 
        superconductor technologies, torpedo defense 
        technologies, advanced control concepts, fuel cell 
        technologies, and propulsors;
            (12) direct that the Director of ARPA shall 
        implement a rapid prototype acquisition strategy for 
        both land-based and at-sea subsystem and system 
        demonstrations of advanced technologies in concert with 
        Electric Boat and Newport News: and
            (13) define potential competitors, for the purposes 
        of this provision, as those that have been awarded a 
        contract by the Secretary of the Navy for construction 
        of nuclear attack submarines during the past 10 years.
Research for advanced submarine technology (sec. 132)
      The conferees agree to adopt a new provision that would 
direct that, of the amount appropriated for fiscal year 1996 
for the national defense sealift fund, $50.0 million would be 
available only for the Director of the Advance Research 
Projects Agency for advanced submarine technology activities.
Cost limitation for Seawolf submarine program (sec. 133)
      The Senate amendment would authorize the third Seawolf 
class submarine SSN-23. Consistent with this authorization, the 
Senate amendment included a provision (sec. 125) that would 
establish a combined cost cap on all three Seawolf submarines 
(SSN-21, SSN-22 and SSN-23). This cost cap would be in addition 
to a cost cap that Congress imposed on the first two Seawolf 
class submarines, SSN-21 and SSN-22, in fiscal year 1995.
      The House bill included a provision (sec. 132) that would 
repeal the cost cap on SSN-21 and SSN-22.
      The conferees agree to adopt a new provision that would:
            (1) establish a combined cost cap on the three 
        Seawolf submarines (SSN-21, SSN-22, and SSN-23); and
            (2) repeal the combined cost cap on SSN-21 and SSN-
        22 that was imposed by the National Defense 
        Authorization Act for Fiscal Year 1995.
Repeal of prohibition on backfit of Trident submarines (sec. 134)
      The House bill contained a provision (sec. 131) that 
would repeal the provision of law that prohibits the backfit of 
Trident II (D-5) missiles into Trident I (C-4) missile-carrying 
submarines.
      The Senate amendment contained an identical provision 
(sec. 122).
      The conference agreement contains this provision.
      The conferees endorse an all D-5 fleet of Trident 
submarines. But the conferees also believe that it is premature 
to rule out the option of retaining all 18 Trident submarines. 
Although the Nuclear Posture Review recommended a force of 14 
Trident submarines equipped with the D-5 missile, circumstances 
may require the United States to retain a higher number of such 
submarines or, alternatively, reduce to a lower level.
      Given this uncertainty, the conferees direct the 
Secretary of the Navy to take several actions: (1) fully fund 
all activities necessary for the backfitting of Trident II 
missiles into at least four west coast Trident submarines on 
the schedule recommended in the Nuclear Posture Review; and (2) 
continue to fund, in the fiscal year 1997 budget and in the 
Future Years Defense Program, adequate operational support for 
Trident I missiles to ensure the option of retaining all 18 
Trident submarines on full operational status, assuming 
backfits of the final four submarines with D-5 missiles 
following the completion of the first four conversions.
Arleigh Burke class destroyer program (sec. 135)
      The Senate amendment contained a provision (sec. 123) 
that would:
            (1) authorize $650.0 million as the first increment 
        of split funding for two Arleigh Burke class destroyers 
        in accordance with a split funding provision (sec. 124) 
        that was included elsewhere in the Senate amendment; 
        and
            (2) express the sense of Congress that the 
        Secretary of the Navy should plan for and request the 
        final increment of funding for the two Arleigh Burke 
        class destroyers in fiscal year 1997, also in 
        accordance with the split funding provision (sec. 124) 
        of the Senate amendment.
      The House bill contained no similar provision.
      The conferees adopt a new provision that would:
            (1) authorize six Arleigh Burke class destroyers;
            (2) authorize $2.17 billion, the budget request, 
        for the construction, including advance procurement, 
        for Arleigh Burke class destroyers;
            (3) authorize the Secretary of the Navy to enter 
        into contracts in fiscal year 1996 for the construction 
        of three Arleigh Burke class destroyers;
            (4) authorize the Secretary of the Navy to enter 
        into contracts in fiscal year 1997 for the construction 
        of three Arleigh Burke class destroyers, subject to the 
        availability of appropriations for such destroyers;
            (5) continue the contract award pattern and 
        sequence used by the Navy for the procurement of 
        Arleigh Burke class destroyers in fiscal years 1994 and 
        1995;
            (6) limit the liability of the government for these 
        vessels to the amounts appropriated for them; and
            (7) encourage, subject to a prior notification to 
        the congressional defense committees, the Secretary of 
        the Navy to use shipbuilding and conversion savings, 
        that become excess to the needs of the Navy from other 
        programs, to fully fund Arleigh Burke class destroyer 
        contracts entered into under the terms of the 
        provision.

Acquisition program for crash attenuating seats (sec. 136)

      The Senate amendment contained a provision (sec. 126) 
that would allow the Secretary of the Navy to establish a 
program to procure and install commercially developed, energy 
absorbing, crash attenuating seats in H-53E helicopters. The 
Senate provision would allow the Secretary to use up to $10.0 
million for the program out of unobligated balances in the 
Legacy Resource Management Program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to establish such a program.
      The conferees acknowledge the potential value of crash 
attenuating seats for passengers in military helicopters, and 
expect the Department to proceed quickly to define the 
technical specification and qualification for non-developmental 
seats. The conferees further expect the Department to ensure 
the acquisition program incorporates full and open competition.
T-39N trainer aircraft (sec. 137)
      The budget request did not include funds to purchase the 
T-39N aircraft the Department of the Navy now uses to train 
naval flight officers. The government leases these aircraft as 
part of a service contract. The lessor has offered to sell 
these aircraft to the government, rather than continue the 
current leasing arrangement.
      The House bill and the Senate amendment would support the 
budget request.
      The Senate report (S. Rept 104-112) would direct the 
Secretary of the Navy to provide an analysis of the 
contractor's proposal to the Armed Services Committee of the 
Senate, so the proposal and the analysis could be reviewed for 
possible further action.
      The conferees recommend $45.0 million for purchasing T-
39N aircraft, subject to certain conditions. The conferees 
believe that the proposal deserves further review before 
purchasing these aircraft. The conferees expect the 
Department's analysis to answer, at a minimum, the following 
questions:
      (1) What would be the status of the training program for 
which T-39Ns are currently leased?
      (2) For what purpose would the Navy spend procurement 
funds in fiscal year 1996?
      (3) Is funding for this project contained anywhere in the 
future years defense program (FYDP)? If there is funding, how 
much?
      (4) Is there an approved requirement in the Navy for 
acquiring this capability? Does this requirement supplant or 
supplement the current mission that is being filled by the T-
39N leasing program?
      (5) How much funding beyond $45.0 million would be 
required to enable the T-39N system to meet future training 
requirements? If additional funds are required, how much of the 
additional cost is budgeted in the FYDP?
      (6) What savings, in terms of both current and constant 
dollars, would accrue to the Navy by purchasing aircraft for 
this requirement on a non-competitive basis in fiscal year 
1996, rather than selecting an aircraft under competitive 
procedures when the current lease program expires in fiscal 
year 1998? If savings will accrue, are they attributable to 
factors other than inflation? Are there savings in life cycle 
support costs beyond the initial acquisition costs?
      (7) Would additional funding for the project now 
interfere with the Navy's opportunity to conduct a competitive 
procurement or better define the program's requirements?
      (8) Are there other reasons that would prevent executing 
the program in fiscal year 1996?
      (9) The conferees understand that the T-39N leasing 
contract provided for amortizing the full purchase price of the 
aircraft over the first five years of the lease. Since the 
contractor has already been reimbursed in full for purchase 
price, why would it be in the government's interests to pay 
more than a nominal amount for aircraft?
      The conferees believe that the proposal to buy the 
aircraft could have merit; however, the conferees recommend a 
provision that would prohibit obligation of these acquisition 
funds until 60 days after the Under Secretary of Defense for 
Acquisition and Technology has submitted the analysis described 
above and has certified to the Armed Services Committee of the 
Senate and the National Security Committee of the House of 
Representatives that acquisition of the T-39N aircraft is in 
the best interest of the government and is the most cost 
effective alternative in meeting the requirements for training 
naval flight officers.
Pioneer unmanned aerial vehicle program (sec. 138)
      The Senate amendment contained a provision (sec. 132) 
that would prohibit the Secretary of the Navy from spending 
more than one-sixth of the funds appropriated for fiscal year 
1996, or any unobligated balances available from previous 
years, until the Secretary certifies that funds have been 
obligated to equip nine Pioneer Unmanned Aerial Vehicle systems 
with the Common Automatic Landing and Recovery System (CARLS).
      The House bill contained no similar provision.
      The House recedes.

                     Subtitle D--Air Force Programs

Repeal of limitations (secs. 141 and 142)

      The budget request included $279.9 million for B-2 
procurement and $623.6 million for B-2 research and development 
for a B-2 program consisting of twenty aircraft. The House bill 
contained a provision (sec. 141) that would repeal limitations 
on the B-2 program, and provide an increase of $553 million for 
B-2 procurement. The House bill would repeal:
            Section 112 of the National Defense Act for Fiscal 
        Years 1990 and 1991, which requires certification from 
        the Secretary of Defense that the B-2 is meeting 
        certain performance criteria.
            Section 151(c) of the National Defense 
        Authorization Act for Fiscal Year 1993, which limits B-
        2 procurement to 20 bombers and one test aircraft.
            Section 131(c) of the National Defense 
        Authorization Act for Fiscal Year 1994, which reaffirms 
        the twenty one aircraft limitation.
            Section 131(d) of the National Defense 
        Authorization Act for Fiscal Year 1994, which limits 
        the total program costs to $28,968,000,000 in Fiscal 
        Year 1981 constant dollars.
            Section 133(e) of the National Defense 
        Authorization Act for Fiscal Year 1995, which provides 
        that none of the $125.0 million authorized and 
        appropriated for the Enhanced Bomber Capability Fund 
        may be obligated for advance procurement of new B-2 
        aircraft (including long lead items).
      The Senate amendment contained no additional funds, nor 
did it contain any repeal of the limitations provision.
      The conferees agree to an amendment that would repeal the 
limitations imposed on the scope of the B-2 program, while 
retaining requirements for B-2 performance compliance in both 
the present authorization and any possible future acquisition 
of the aircraft.
      The conferees agree to authorize the budget request for 
research and development and to increase the authorization for 
procurement by $493.0 million. The conferees further agree that 
the $493.0 million may not be spent until March 31, 1996.
      The conferees believe that the B-2 bomber represents a 
major technological advance in strategic bomber capabilities. 
However, if a decision were made to acquire additional B-2 
bombers, their high cost would result in funding reductions in 
the Administration's five year defense program. Therefore, the 
Senate conferees believe that the increased authorization of 
$493.0 million provided for the B-2 bomber program may be 
expended only for procurement of B-2 components, upgrades, and 
modifications that would be of value for the existing fleet of 
B-2 bombers.
      The conferees are concerned over the cost of producing 
modern, highly capable, long range bombers, and therefore 
strongly urge the Secretary of Defense to: (1) complete the 
study called for in section 133(d)(3) of the National Defense 
Act of 1995 (Public Law 103-337) for requirements formulation 
and conceptual studies for a conventional-conflict-oriented, 
lower-cost, next generation bomber; and (2) explore options, 
including adoption of streamlined acquisition policies and 
procedures, for reducing the costs of producing long-range 
bombers. Accordingly, the conferees agree to repeal the 
requirements contained in section 133(d)(3), which states that 
such a study may be carried out only if the previously-produced 
bomber force study found bomber capabilities to be inadequate.
      The conferees note that section 133(d) permitted the 
Secretary to obligate up to $25.0 million of the $125.0 million 
authorized and appropriated in fiscal year 1995 for the 
Enhanced Bomber Capability Fund for such a study. The conferees 
direct that any remaining unobligated fiscal year 1995 funds 
from the $125.0 million made available for B-2 bomber 
industrial base preservation and next-generation bomber study 
shall promptly be merged with the $493.0 million in additional 
B-2 funds authorized in this Act.
      In order to compare force capabilities with relative 
costs, the conferees urge the Secretary of Defense to provide a 
summary and detailed listing of program reductions and 
adjustments to the fiscal year 1997 budget request and the 
future years' defense program (FYDP) required by the possible 
acquisition of additional B-2 bombers. The Secretary should use 
the standard cost analysis approach used in the March 1995 Air 
Force cost estimate for further B-2 acquisition of one and one-
half and three aircraft per year.
MC-130H Aircraft Program (sec. 143)
      The conference agreement includes a new provision that 
would amend section 161 of the National Defense Authorization 
Act for Fiscal Years 1990 and 1991 (P.L. 101-189) to enable 
obligation of funds for award fee and procurement of contractor 
furnished equipment.
      The conferees understand that the Air Force desires to 
grant an award fee to the MC-130H Combat Talon II development 
contractor, but is prohibited from doing so by a provision of 
Public Law 101-189. The conferees note that the prohibitive 
legislative provision requires the Director of Operational Test 
and Evaluation (DOT&E) to certify that the MC-130H Combat Talon 
II terrain avoidance radar performs in accordance with 
requirements outlined in the test and Evaluation Master Plan 
(TEMP) approved by the DOT&E in September 1988. The conferees 
have been informed that the aircraft cannot be certified as 
having met TEMP criteria because a specific test criterion 
referred to in the TEMP has been determined to be unmeasurable.
      The conferees agree to include a provision that would 
allow the DOT&E to certify to the congressional defense 
committees that the MC-130H terrain avoidance radar is 
operationally effective in order to release the award fee for 
the MC-130H. The conferees direct the DOT&E to include in his 
report a statement that all unmeasurable test criteria included 
in the September 1988 TEMP have been appropriately corrected.

             Subtitle E--Chemical Demilitarization Program

Chemical agents and munitions destruction program (secs. 107, 151-153)

      The budget request contained $746.7 million for operation 
and maintenance, research and development and procurement, for 
the defense chemical agents and munitions destruction program.
      The House bill contained a series of provisions (secs. 
106, 151-153, and 2407) that would: authorize the budget 
request; repeal a legislative requirement to develop a chemical 
demilitarization cryofracture facility; express congressional 
concern about the cost growth of destroying the unitary 
chemical stockpile and express a view that the Secretary of 
Defense should consider measures to reduce the overall cost; 
direct the Secretary of Defense to conduct a review and 
evaluation of issues associated with closure and reuse of the 
Department of Defense facilities that are co-located with the 
unitary chemical stockpile and demilitarization operations; and 
prohibit the obligation or expenditure of fiscal year 1996 
funds, prior to March 1, 1996, for the construction of a 
chemical munitions incinerator facility at Umatilla Army Depot, 
Oregon.
      The Senate amendment contained provisions (sec. 107 and 
1099C) that would authorize $671.7 million for the chemical 
agents and munitions destruction program, and direct the 
Department of Defense to review and assess the risk associated 
with the transportation of any portion of the unitary chemical 
stockpile, such as drained chemical agents or munitions from 
one location to another within the continental United States, 
and review and evaluate issues associated with closure and 
reuse of the Department of Defense facilities that are co-
located with the unitary chemical stockpile and 
demilitarization operations. The Senate report (S. Rept. 104-
112) would recommend the use of unobligated fiscal years 1994 
and 1995 procurement funds for procurement of equipment at Pine 
Bluff, Arkansas and Umatilla, Oregon.
      The conferees agree to provisions that would authorize 
$672.3 million for the defense chemical agents and munitions 
program, to include: $265.0 million for procurement; $353.8 
million for operations and maintenance; and $53.4 million for 
research and development. The provision would repeal the 
legislative requirement to develop a chemical demilitarization 
cryofracture facility.
      Further, the conferees agree to provisions that would 
direct the Secretary of Defense to proceed with the destruction 
of the U.S. chemical stockpile using the current baseline 
technology. The conferees would also require the Secretary to 
ensure that support measures have been provided at each 
installation where a chemical agent and munitions 
demilitarization facility would be constructed, as required by 
the Department of Defense and the Department of Army 
regulations, the chemical demilitarization plans, and the Solid 
Waste Disposal Act permit. The conferees direct the Secretary 
to conduct an assessment of the current chemical 
demilitarization program and recommend measures that could 
reduce the total cost of the program. The provision would also 
direct the Secretary to review and evaluate issues associated 
with the closure and reutilization of Department of Defense 
facilities co-located with continuing chemical stockpile and 
chemical demilitarization operations. The conferees agree to 
authorize the use of funds appropriated for the defense 
chemical agents and munitions destruction program to support 
travel and associated travel costs of Commissioners of the 
Citizens' Advisory Commissions, when such travel is conducted 
at the invitation of the Assistant Secretary of the Army for 
Research, Development and Acquisition. The provision would 
modify existing law to permit the appointment of a civilian as 
project manager for the chemical agent and munitions 
destruction program. The Department would also be required to 
provide a quarterly report to Congress on the use of such funds 
to pay for the travel and associated travel costs.

     COST OF THE CHEMICAL AGENTS AND MUNITIONS DESTRUCTION PROGRAM

      The conferees remain concerned about the escalating costs 
associated with the chemical agents and munitions destruction 
program. The program has grown from its original estimate of 
$1.7 billion in 1986 to the current estimated cost of $11.9 
billion, with expectations that costs will further increase. 
Continued delays in proceeding with the demilitarization and 
destruction of the chemical stockpile have added to the overall 
increases in the program. The conferees believe that the 
program should proceed expeditiously and utilize technology 
that minimizes risks to the public and the environment.
      The conferees are concerned that continued delays, 
related to site operation systemization, environmental permits, 
and construction of the demilitarization and destruction 
facilities, would increase the overall program costs and risks 
to the public and the environment.
      Finally, as the Department reviews measures that could be 
implemented to reduce the growth of the program costs, the 
conferees expect the Secretary to consider the potential for 
reconfiguration of the stockpile, as described in the October 
19, 1995 letter from the Assistant Secretary of the Army for 
Research, Development and Acquisition, and to ensure protection 
of the public and environment.

                        ALTERNATIVE TECHNOLOGIES

      The Department of the Army is currently conducting 
research and development of chemical neutralization and 
biodegradation, in conjunction with neutralization, for use at 
the bulk-only storage sites. The conferees believe there is 
potential for the implementation of these processes at future 
demilitarization and destruction sites, which could reduce the 
requirement for a liquid incinerator. The conferees support the 
National Research Council's (NRC's) recommendation that the 
Army continues its current baseline incineration program until 
such time as the evaluation of these alternative technologies 
is concluded.
      If the evaluation of the alternative technologies 
research and development program proves successful, the 
conferees would support inclusion of this process into the 
baseline process. In conducting the chemical demilitarization 
and destruction program and assessing measures to significantly 
reduce program costs, the conferees expect the Department to 
consider a wide range of alternatives to the current baseline 
incineration program, to include the use of alternative 
technologies.
      Additionally, the conferees expect the Secretary's 
assessment of the current chemical demilitarization program and 
measures to reduce the overall cost of the program, to include 
a risk analysis specific to each chemical stockpile storage and 
demilitarization site, the results of the stockpile 
surveillance and stability analysis related to the physical and 
chemical integrity of the stockpile, and the potential 
reconfiguration of the chemical stockpile. In making such an 
assessment, the Secretary shall ensure the maximum protection 
of the environment, the general public, and the personnel 
involved in the destruction of the chemical stockpile, while 
minimizing total program costs. The conferees expect the 
assessment to yield potential revisions to the chemical agents 
and munitions destruction program that could reduce program 
costs and increase public safety.

                   legislative provisions not adopted

Repeal of limitation on total cost for SSN-21 and SSN-22 Seawolf 
        submarines
      The budget request included $1.5 billion for construction 
of the third Seawolf class submarine, SSN-23.
      The House bill would not authorize SSN-23. However, 
consistent with other actions taken by the House on SSN-22, the 
House bill contained a provision (sec. 132) that would 
eliminate the existing cost cap on the first two Seawolf class 
submarines.
      The Senate amendment would authorize SSN-23. It did not 
contain a provision that would repeal the cost cap on SSN-21 
and SSN-22.
      The House recedes.
Competition required for selection of shipyards for construction of 
        vessels for next generation attack submarine program
      The House bill contained a provision (sec. 133) that 
would:
      (1) require the Secretary of the Navy to select on a 
competitive basis the shipyard for construction of each vessel 
of the next generation attack submarine program; and
      (2) stipulate that the next generation attack submarine 
program shall begin with the first submarine that is programmed 
to be constructed after the submarine that is programmed to be 
constructed in fiscal year 1998.
      The Senate amendment contained a provision (sec. 121) 
that would address competition as an integral part of the 
broader issue of current and future nuclear submarine 
construction programs.
      The House recedes.
      The conferees agree to incorporate the issue of 
competition for future submarines into a new, more 
comprehensive provision dealing with future submarine 
development and procurement.
Sonobuoy programs
      The budget request included $8.9 million for the 
procurement of AN/SSQ-53 sonobuoys and no funding for the 
procurement of AN/SSQ-110 sonobuoys.
      The House bill contained a provision (sec. 134) that 
would:
      (1) stipulate that no fiscal year 1996 funds could be 
used for procurement of AN/SSQ-53 sonobuoys; and
      (2) authorize $8.9 million for AN/SSQ-110 sonobuoys.
      While the Senate amendment contained no similar 
provision, it did recommend funding adjustments to these two 
sonobuoy programs that would accomplish the intent underlying 
the House provision.
      The conferees agree that the funding adjustment included 
in the House provision should be adopted, but do not believe 
that a legislative provision to that effect is necessary.
      The House recedes.

Split funding for construction of naval vessels and incremental funding 
        of procurement items

      The Senate amendment contained a provision (sec. 124) 
that would authorize the Secretary of Defense to employ split 
funding for construction of certain naval vessels when 
developing the future years defense program. The provision 
would permit the Secretary to provide funding for these vessels 
over two years, but enter into a contract based on the first 
increment of funding. The intent of the provision would be to 
provide the Secretary with more flexibility to develop a 
uniform and cost effective shipbuilding program.
      The House bill contained a provision (sec. 1007) that 
would prohibit the use of incremental funding, including split 
funding, for:
      (1) the procurement of aircraft, missiles, or naval 
vessels;
      (2) the procurement of tracked combat vehicles;
      (3) the procurement of other weapons; and
      (4) the procurement of naval torpedoes and related 
support equipment.
      The House provision would not apply to funding classified 
as advance procurement funding.
      These provisions were not included in the conference 
agreement.
Tier II predator unmanned aerial vehicle program
      The Senate amendment contained a provision (sec. 131) 
that would prohibit the obligation of funds appropriated or 
otherwise made available for the Department of Defense in 
fiscal year 1996 for the Tier II Predator Unmanned Aerial 
Vehicle.
      The House bill contained no similar provision.
      The Senate recedes.
Joint primary aircraft training system program
      The budget request included $55.0 million for three joint 
primary aircraft training system (JPATS) aircraft. At the time 
of the budget submission, the Department of Defense (DOD) had 
not completed the JPATS competition. This amount was derived 
from an estimate of funding required to procure three aircraft 
from any of the potential competitors. After source selection, 
the Department determined that it could procure eight JPATS 
aircraft with the requested funds.
      The Senate amendment contained a provision (sec. 133) 
that would increase the number of aircraft that the Department 
could procure, from three to eight, without changing the amount 
of the authorization.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree that the Air Force should buy up to 
eight aircraft with authorized funds.
Weapons industrial facilities
      The budget request included $13.1 million for naval 
weapons industrial facilities.
      The Senate amendment included a provision (sec. 391) that 
would authorize an increase of $2.0 million in operations and 
maintenance accounts for essential safety functions for the 
Allegany Ballistics Laboratory.
      The House bill contained no similar provision.
      The Senate recedes. The conferees agree to provide an 
increase of $30.0 million for naval weapons industrial 
facilities for continuation of the facility restoration program 
at Allegany Ballistics Laboratory.

         Title II--Research, Development, Test, and Evaluation

Overview
      The budget request for fiscal year 1996 contained an 
authorization of $34,331.9 million for Research and Development 
in the Department of Defense. The House bill would authorize 
$35,934.5 million. The Senate amendment would authorize 
$35,959.9 million. The conferees recommended an authorization 
of $35,730.4 million. Unless noted explicitly in the statement 
of managers, all changes are made without prejudice.


Overview
      The budget request for fiscal year 1996 contained an 
authorization of $4,444.2 million for Army, Research and 
Development in the Department of Defense. The House bill would 
authorize $4,774.9 million. The Senate amendment would 
authorize $4,845.1 million. The conferees recommended an 
authorization of $4,737.6 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Passive millimeter wave camera

      The budget request did not include funds for the passive 
millimeter wave camera.
      The House bill would add $6.0 million in PE 62120A for 
continuation of the program.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Tractor rose

      The budget request included $4.5 million for Tractor 
Rose.
      The House bill would authorize the requested amount.
      The Senate amendment would authorize an additional $13.5 
million.
      The conferees are aware of recent progress in the 
activities related to this program. As a consequence, the 
conferees recommend authorization of this project at the level 
of funds appropriated in fiscal year 1996. In addition, the 
conferees urge the Department of the Army to consider 
reprogramming funds below threshold to capitalize on the 
potential of this technology.

Electric gun technology

      The budget request included $9.0 million for the electric 
gun exploratory development program.
      The House bill would authorize an additional $6.0 million 
in PE 62618A to complete research team data gathering and 
assessment in order to refocus the effort on the most promising 
technologies.
      The conferees agree to authorize an additional $7.0 
million for electric gun technology and an additional $1.0 
million for the electrothermal chemical gun.
Objective individual combat weapon (OICW)
      The budget request included $5.1 million in PE 62623A and 
$4.5 million in PE 63607A for continuation of the joint service 
small arms program.
      The House bill would authorize an additional $2.0 million 
in PE 63607A for an advanced technology demonstration of 
lightweight, medium caliber, multi-shot, anti-armor weapon 
technology for application to a next-generation objective 
individual combat weapon system (OICW) for the Army and the 
Marines. The House report (H. Rept. 104-131) expressed the 
concern that funds requested for the OICW in fiscal year 1996 
are insufficient to adequately conduct this advanced technology 
program. The House report also encouraged the Secretary of the 
Army to examine the current development strategy for the OICW 
to support the joint small arms master plan (JSAMP) and to 
request reprogramming of funds to carry out the plan.
      The Senate amendment would authorize the requested 
amount.
      The House recedes. The conferees strongly support the 
development of advanced technology for advanced individual 
weapons systems, as outlined in the JSAMP, and share the 
concerns expressed in the House report regarding adequacy of 
funding for development of the OICW. The conferees encourage 
the Secretary of the Army to request reprogramming of 
additional funds to compensate for any fiscal year 1996 funding 
shortfalls in the OICW program. The conferees also encourage 
the Secretary to include additional funds in the fiscal year 
1997 budget request for OICW.
Advanced battery technology
      The budget request did not include funding for advanced 
batteries.
      The House bill would authorize $3.0 million in PE 62705A 
for non-metallic lithium and low-cost reusable alkaline 
batteries.
      The Senate amendment contained no similar provision.
      The conferees agree to the House authorization, but agree 
to provide only $2.0 million in PE 62705A.
Environmental policy simulation laboratory
      The conferees agree that $3.0 million of the funds 
appropriated in PE 62720A shall be authorized for the 
establishment of an environmental policy simulation lab under 
the direction of the Army Environmental Policy Institute. The 
conferees further direct the Department of Defense to comply 
with the direction contained in the Senate report (S. Rept. 
104-112) regarding the establishment of this lab.
Command, control, and communications technology
      The budget request included $15.7 million in PE 62782A 
for the exploratory development of command, control, and 
communications technology.
      The House bill would authorize the requested amount.
      The Senate amendment would authorize an additional $2.0 
million in PE 62782A as part of a general increase to address 
underfunding in the Army technology base.
      The Senate recedes.
      The conferees agree that the Army technology base has 
been underfunded in recent years. The conferees urge the Army 
leadership and the Office of the Secretary of Defense provide 
for balanced funding of the Army technology base program, as 
related to other Defense program accounts in the fiscal year 
1997 budget request.
Medical advanced technology
      The budget request included $11.8 million for medical 
advanced technology.
      The House bill would include an additional $5.0 million 
for continuation of the battlefield tissue replacement program.
      The Senate amendment would include an additional $3.0 
million for telemedicine.
      The conferees agree to authorize an additional $8.0 
million for both of these programs and an additional $1.0 
million for Army standardized testing of Trichloromelamine 
(TCM) in PE 63002A.
Aviation advanced technology
      The budget request included $48.6 million for aviation 
advanced technology.
      The House bill provided an additional authorization of 
$6.5 million for evaluation of the Starstreak missile and $10.0 
million for tactical mobility technologies and designs, 
particularly related to the CH-47.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an additional $4.0 
million in PE 63003A for the completion of the phase II air-to-
air test and evaluation for Starstreak during fiscal year 1996 
and $4.0 for modernization technologies and improvement designs 
for the CH-47D.
      The Army is encouraged to provide sufficient funding in 
its fiscal year 1997 budget request for completion of the air-
to-air Starstreak evaluation program and continuation of the 
CH-47D modernization program.
Weapons and munitions-advanced technology
      The budget request included $18.8 million for weapons and 
munitions advanced technology.
      The House bill would authorize an additional $2.0 million 
for the XM 982/155mm projectile development.
      The Senate amendment would authorize the request.
      The conferees agree to authorize $2.0 million for the XM 
982/155mm projectile development, an additional $6.0 million 
for the precision guided mortar munition, and an additional 
$1.0 million for electrorheological fluid recoil in PE 63004A.
Command, control, and communications-advanced technology
      The budget request included $16.9 million in PE 63006A 
for advanced development of command, control, and 
communications technology.
      The House bill would authorize the requested amount.
      The Senate amendment would authorize an additional $3.0 
million to partially address funding shortfalls in the Army 
technology base for fiscal year 1996. The Senate amendment 
would also authorize an increase of $4.0 million in PE 63006A 
to develop and test wave net technology for possible 
application to the Army's digitization initiatives.
      The conferees agree to authorize the additional $4.0 
million to PE 63006A for development and testing of wave net 
technology.
Space applications technology program
      The budget request included $16.9 million in PE 63006A 
for command, control, and communications advanced technology, 
including $498,000 for the Army's space applications technology 
program.
      Both the House bill and the Senate amendment would 
authorize the budget request for the Army's space applications 
technology program.
      The conferees agree to an additional $5.0 million in PE 
63006A for the space applications technology program. The 
conferees are aware of the program's success in demonstrating 
global positioning system and Wrasse weather data receivers 
during Operation Desert Storm/Desert Shield and other space 
technology applications, such as, the location of high value 
targets using hyperspectral sensing techniques, high data rate 
satellite communications on the move, and down link weather 
satellite technology. The conferees encourage the Army to 
continue support to the program in future budget requests.
Acquired immune deficiency syndrome
      The budget request included $2.9 million in PE 63105A.
      Both the House bill and the Senate amendment authorized 
the requested amount.
      The conferees agree to authorize the requested amount and 
concur with the Senate report (S. Rept. 104-112) that directed 
at least $1.0 million of the authorized amount be used to 
continue domestic clinical HIV programs.
Joint precision strike demonstration programs
      The budget request included $34.1 million in PE 63238A 
for the joint air-land-sea precision strike demonstration 
(JPSD) program.
      The House bill would direct that the JPSD program be 
expanded into a jointly manned program, with participation by 
all military services, and would recommend an increase of $4.0 
million for this purpose.
      The Senate amendment would authorize the requested 
amount.
      The House recedes. The conferees agree with the views 
expressed in the House report (H. Rept. 104-131) on the 
progress made by the Army in demonstrating advanced concepts 
for attack of time-critical targets. The conferees also agree 
with the House report recommendations for increased 
participation by the other military services in the JPSD. 
Attack of time-critical targets on the battlefield is a joint 
issue which requires the coordinated efforts of all the 
military services.
Missile and rocket advanced technology
      The budget request included $123.9 million in PE 63313A 
for missile and rocket advanced technology.
      The House bill would reduce the requested amount by $12.1 
million by making the following adjustments: adding $2.5 
million for low cost autonomous attack submunition (LOCAAS) and 
$5.0 million for low-cost guidance development for the multiple 
launch rocket system (MLRS); and reducing the amount requested 
for the rapid force projection initiative by $19.6 million.
      The Senate amendment would increase the requested amount 
by $12.0 million, with $5.0 million for LOCAAS and $7.0 million 
for low-cost guidance for MLRS.
      The conferees agree to authorize a total of $118.9 
million in PE 63313A. The conferees agree to reduce the 
requested amount by $7.5 million for the Enhanced-Fiber Optic 
Guided (E-FOG) missile system, as a result of concerns 
expressed in the House report (H. Rept. 104-131), and to add 
$2.5 million for LOCAAS within PE 63313A. The conferees would 
also increase the requested amount by $2.5 million for LOCAAS 
in PE 63601F for the Air Force. The conferees continue to 
support low-cost guidance for the MLRS and urge the Army to 
reprogram funds for this program in fiscal year 1996 and to 
request adequate funds in the fiscal year 1997 budget request.

Landmine warfare and barrier advanced technology

      The budget request included $18.8 million for landmine 
warfare, and barrier advanced technology.
      The House bill would authorize an additional $10.0 
million for continuation of the landmine neutralization 
program.
      The Senate amendment would approve the budget request.
      The conferees agree to authorize an increase of $6.0 
million for PE 63606A. Of this increase, $3.0 million will be 
used for landmine detection and clearance technology 
development, and $3.0 million will be used for the accelerated 
development and testing of the Ground Penetrating Radar.

Intelligence fusion analysis demonstration

      The budget request included $2.9 million in PE 63745A for 
the Intelligence Fusion Analysis Demonstration program.
      The House bill would authorize an additional $3.0 million 
for development and evaluation in Army Warfighter Experiments 
and the joint precision strike demonstration program of 
advanced large screen, automated graphical displays that would 
provide enhanced situational awareness for tactical commanders.
      The Senate amendment would authorize the requested 
amount.
      The Senate recedes.

Aviation advanced development

      The budget request contained $8.4 million for aviation 
advanced development.
      The House bill would authorize an additional $6.0 million 
for the common helicopter helmet development in PE 63801A.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Comanche helicopter (RAH-66)

      The budget request included $199.1 million to continue 
development of the Comanche scout/attack helicopter.
      The House bill would authorize an increase of $100.0 
million for Comanche research and development.
      The Senate amendment would authorize an increase of 
$174.0 million and require the Department of Defense and the 
Department of the Army to develop a plan to provide for 
procurement of Comanche helicopters, not later than fiscal year 
2001, with initial operating capability by fiscal year 2003.
      The Senate recedes.
      The conferees agree to authorize an increase of $100.0 
million to accelerate development of the electro-optical system 
and integrated communication navigation package, and mission 
equipment software development for the second aircraft.
Medium truck extended service program
      The House bill would authorize an additional $9.4 million 
for the Marine Corps medium truck variant.
      The Senate amendment would add $10.0 million to PE 64604A 
for initiation of a five-ton truck extended service program 
(ESP), and $9.4 million to PE 26624M for additional medium 
truck variants and development of simulation models and 
testing.
      The conferees agree to provide $1.5 million in PE 64604A 
for the Army's five-ton ESP and $3.5 million for the Marine 
Corps in PE 26624M for initiation of a medium tactical vehicle 
replacement (MTVR).
      The conferees agree with the section of the Senate Report 
(S. Rept. 104-112) that deals with the medium tactical truck 
extended service program, including the requirements for a 
report from the Secretary of the Army on the medium truck ESP.
      As the manager of tactical vehicles for the Department of 
Defense, the conferees expect the Army to manage the Army five-
ton truck ESP and the Marine Corps MTVR program and ensure that 
Air Force and Navy requirements are included in executing the 
Army ESP. The conferees expect the Army to take maximum 
advantage of medium truck ESP currently underway, to minimize 
additional procurements to avoid industrial overcapacity, and 
to give consideration to reliable manufacturers that have 
demonstrated capabilities to produce military trucks.
Heavy tactical vehicles
      The House bill would provide an increase of $2.75 million 
in PE 64622A, $1.9 million for water heater/chiller development 
for the Army's water tank semitrailer, and $.85 million for a 
palletized loading system technology demonstration.
      The Senate amendment would provide an increase of $1.9 
million in PE 64622A for water heater/chiller development for 
the Army's water tank semitrailer.
      The Senate recedes.
High mobility multipurpose wheeled vehicle extended service program
      The Senate amendment would include an increase of $5.0 
million in PE 64642A to initiate an extended service program 
(ESP) for the high mobility multipurpose wheeled vehicle 
(HMMWV).
      The conferees recognize that the HMMWV fleet is reaching 
age and mileage levels leading to increased maintenance and 
operating costs and lower reliability. The conferees agree to 
provide an increase of $2.0 million for initiation and 
prototype development for HMMWV ESP.
      The conferees direct the Secretary of the Army to submit, 
with the fiscal year 1997 budget request, a report to the 
congressional defense committees that describes a program to 
develop and test prototypes, and to initiate a joint program to 
remanufacture HMMWV's for the Army and the Marine Corps, 
harmonizing their requirements for ESP. The conferees further 
direct the Secretary of the Army and the Secretary of the Navy 
to ensure this program is fully funded in future budgets.
Automated test equipment development
      The budget request included $5.4 million for automated 
test equipment development.
      The House bill would authorize an additional $10.0 
million in PE 64746A for the integrated family of test 
equipment.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Joint surveillance target attack radar system

      The budget request included $18.8 million for the Army 
and $169.7 million for the Air Force for the Joint Surveillance 
Target Attack Radar System (JSTARS).
      The House bill would authorize an increase in the Air 
Force requested amount, $14.0 million to establish a NATO 
program office and $20.0 million for development of an improved 
data modem and satellite communications capability.
      The Senate amendment would authorize no additional 
funding for these programs.
      The conferees agree to authorize an additional $9.5 
million in PE 64770A for the Army Ground Station Module, in 
support of the NATO Alliance Ground Surveillance program, and 
an additional $24.5 million in PE 64770F, with $4.5 million for 
the Air Force portion of the JSTARS NATO Alliance Ground 
Surveillance program and $20.0 million for development of an 
improved data modem and satellite communications capability.

Weapons and munitions-engineering development

      The budget request included $15.9 million for weapons and 
munitions-engineering development.
      The House bill would authorize an additional $2.7 million 
for type classification of a soft mount for the MK-19 and $1.6 
million for the 120mm practice cartridge XM-931 training round.
      The Senate amendment would authorize $0.5 million for 
type classification of a non-developmental universal mounting 
bracket for the MK-19 grenade machine gun.
      The conferees agree to authorize $0.5 million for the 
type classification of the MK-19 mounting bracket and $1.6 
million for the 120mm practice cartridge in PE 64802A.

Battlefield combat identification system (BCIS)

      The conferees are disappointed with the fiscal 
constraints that precluded full funding of the administration's 
$30.5 million request for non-cooperative target recognition 
(PE 64817A), particularly in relation to the battlefield combat 
identification system (BCIS). Fratricide on the battlefield is 
of great concern to our fighting forces, and BCIS is expected 
to significantly enhance the Army's ability to deal with this 
critical issue. The system has performed extremely well in Army 
testing to date, and the program enjoys widespread support, 
both within the military services and the warfighting 
Commanders-in-Chief. The conferees encourage the Secretary of 
the Army to aggressively pursue the program, and would 
entertain a reprogramming request to fund additional BCIS units 
or accelerated BCIS development.

Joint warfighter interoperability demonstration

      The budget request included $46.5 million in PE 65712A 
for support of Army operational testing.
      The House bill would recommend an additional $1.5 million 
for support of a joint warfighter interoperability 
demonstration, one of the key fiscal year 1996 funding 
shortfalls identified during evaluation of the Department of 
the Army budget request.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an additional $1.5 
million in PE 23758A for support of the joint warfighting 
interoperability demonstration, as recommended in the House 
bill.
Missile/air defense product improvement
      The budget request included $17.1 million for the 
missile/air defense product improvement program element.
      The House bill would authorize an increase of $9.8 
million for the evaluation of Stinger block II.
      The Senate amendment would also authorize $9.8 million 
for Stinger, and an additional $35.0 million for Patriot cruise 
missile defense.
      The conferees agree to authorize $61.9 million in PE 
23801A, an increase of $44.8 million for both programs.
Instrumented factory for gear development
      The budget request did not include funding for the 
continuation of the instrumented factory gear (INFAC).
      The House bill would authorize an additional $5.0 million 
for INFAC in PE 78045A.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Polycrylonitrile carbon fibers
      The budget request did not include funding for 
polycrylonitrile (PAN) fiber development.
      The House bill would authorize an additional $4.0 million 
for PAN fibers in the Army MANTECH program.
      The Senate amendment would authorize an additional $4.0 
million for PAN fibers in the Army materials technology 
program.
      The conferees agree to authorize an additional $4.0 
million for this PAN fibers program in PE 78045A.
Rotary winged aircraft repair
      The budget request included no funding for manufacturing 
technology related to rotary winged aircraft repair.
      The House bill would fence $1.5 million of the Army 
MANTECH program for technologies related to industrial-academic 
partnerships for repair technology development and insertion 
for rotary winged aircraft.
      The Senate amendment contained no similar provision.
      The conferees agree to authorize $1.5 million for the 
program in PE 78045A.
Task force XXI soldier
      The conferees agree to authorize $30.0 million for a 
program that consolidates the Army's Land warrior and 
Generation II (GEN II) soldier programs. The conferees agree to 
the following adjustment for the purpose of program 
consolidation:
                                                                Millions
PE 63001A--Logistics Advanced Technology.......................... -$4.9
PE 63710A--Night Vision Advanced Technology.......................  -4.2
PE 63772A--Advanced Tactical Computer Science and Technology......  -5.0
PE 63747A--Soldier Support and Survivability...................... -25.9
Task Force XXI Soldier............................................ +30.0

      The conferees believe that the Army must examine and 
consider a full range of alternatives, including expansion of 
the dismounted soldier system of the applique program, 
execution of the Land Warrior program, and acceleration of the 
GEN II advanced technology demonstrator, to the extent that 
they support the new consolidated program.
Overview
      The budget request for fiscal year 1996 contained an 
authorization of $8,204.5 million for Navy, Research and 
Development in the Department of Defense. The House bill would 
authorize $8,516.5 million. The Senate amendment would 
authorize $8,624.2 million. the conferees recommended an 
authorization of $8,474.8 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Long-range guided projectile technology

      The budget request contained $32.7 million for 
development and demonstration of the advanced global 
positioning system/inertial navigation system (GPS/INS) 
guidance and control technology for long range precision guided 
munitions used by Navy surface fire support and Army long-range 
artillery.
      The House bill would authorize an additional $9.0 million 
to accelerate the development and demonstration of the GPS/INS.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment.
      The conferees agree to an additional $2.0 million in PE 
62111N for the purposes indicated in the House report (H. Rept. 
104-131). The conferees are aware of a demonstrated rapid 
progress in the development and demonstration of miniaturized, 
gun-hardened GPS/INS technology in the Army's Low-Cost 
Competent Munition (LCCM) Program, the Navy's advanced 
technology demonstration program for an extended range guided 
projectile, and the cooperative LCCM technology program 
established between Departments of the Army and the Navy. The 
conferees believe that the technology may significantly improve 
the accuracy of existing and future gun-fired projectiles, 
missiles, and rockets, and that an opportunity exists to 
accelerate development and demonstration in these areas. The 
conferees strongly encourage increased funding in this area in 
future Army and Navy budget requests.

Surface ship technology

      The budget request included $36.8 million for surface 
ship technology.
      The House bill would authorize an additional $6.0 million 
for power electronics building blocks and $10.0 million for 
advanced submarine technology development.
      The Senate amendment would authorize an additional $6.0 
million for power electronics building blocks.
      The conferees agree to authorize $67.8 million in PE 
62121N; an increase of $31.0 million. That authorization 
includes $6.0 million for power electronics building blocks, 
$10.0 million for advanced submarine technology development and 
$15.0 million for curved plate technology for ship 
construction.

Power electronic building blocks

      The budget request did not include funding for the power 
electronic building blocks project.
      Both the House bill and the Senate amendment contained 
$6.0 million in PE 62121N to initiate a power electronics 
program based on metal oxide semiconductor (MOS) control 
thyristors for high speed switching.
      The conferees agree that the program should be affiliated 
with academic institutions and, as recommended by the Senate, 
involve a computational test bed for system simulation. The 
conferees agree that at least one-third of the funding should 
be for university participation.
Flat panel, helmet-mounted display
      The budget request included $7.0 million in PE 62122N for 
exploratory development of air vehicle technology.
      The House bill would authorize an additional $2.5 million 
to continue exploratory development of flat panel, helmet-
mounted displays for air crew helmets.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Communications technology
      The budget request included $9.2 million in PE 62232N to 
continue development of key communications technologies for 
air, ship, and submarine platforms.
      The House bill would authorize an additional $4.0 million 
for support of wireless and satellite communications research 
in the areas of integrated antenna systems, communications 
hardware design, communication algorithm development and high-
frequency device modeling and measurements.
      The Senate amendment contained no similar recommendation.
      The House recedes. The conferees recognize the importance 
of continued wireless and satellite communications research in 
the areas recommended in the House report (H. Rept. 104-131).
Air crew adaptive automation technology
      The budget request included $40.5 million in PE 62233N 
for exploratory development of enabling readiness, training, 
and environmental technologies that support the manning, 
operation, and maintenance of fleet assets, and that provide 
the necessary training, facilities, and equipment to maintain 
operational forces in a high state of readiness.
      The House bill would authorize an additional $2.7 million 
to continue development of adaptable automation technology for 
management of air crew workloads.
      The Senate amendment would authorize the budget request.
      The House recedes.
Embedded sensors
      The budget request included $74.8 million in PE 62234N 
for exploratory development in the areas of materials, 
electronics, and computer technology in support of Navy 
advanced weapon and platform systems.
      The House bill would authorize an additional $3.0 million 
to complete the exploratory development of embedded, remotely 
queried, microelectromechanical sensors in thick composites, 
which would be suitable for use in submarine, ships, and 
armored vehicles.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Parametric airborne dipping sonar
      The budget request included $51.2 million for exploratory 
development of undersea surveillance and weapons technology.
      The Senate amendment would authorize an additional $4.8 
million in PE 62314N to expand the current scope of the 
demonstration and evaluation of parametric sonar technology to 
provide three dimensional stabilized steerable beams, around 
360 degrees, at full source level, further characterize the 
technology for mine avoidance implications, and evaluate 
whether parametric sonar technology merits further development.
      The House bill contained no similar provision.
      The House recedes. The conferees agree that the Navy 
should complete evaluation of the limited capability laboratory 
prototype, in-depth technical review and assessment of the 
potential of parametric sonar for helicopter application, and 
in-water testing and evaluation of the parametric airborne 
dipping sonar prototype.
Polar Ozone Aerosol Monitor III
      The budget request included $45.5 million for exploratory 
development of oceanographic and atmospheric technology, in 
support of joint warfare mission area capabilities.
      The House bill would authorize an additional $5.0 million 
to complete engineering, integration and test of the Polar 
Ozone Aerosol Monitor (POAM) III payload on the SPOT 4 
spacecraft, in anticipation of system launch in 1997.
      The Senate amendment included no similar provision.
      The conferees agree to authorize an additional $2.5 
million in PE 62435N to continue engineering, integration and 
test of the POAM III payload on the SPOT 4 spacecraft. The 
conferees encourage the Secretary of the Navy to reprogram 
those funds necessary to complete the program and launch the 
POAM III payload on the SPOT 4 spacecraft in 1997.
Air crew protective clothing and devices
      The budget request included $1.7 million in PE 63216N for 
demonstration and validation of air crew protective clothing 
and devices.
      The House bill would authorize an additional $7.4 million 
to the budget request to continue development of the advanced 
integrated life support system and of an advanced technology 
escape system for air crews. The House report (H. Rept. 104-
131) also directed the Navy to provide, by March 2, 1996, a 
report that would describe the program plan for these two 
programs and the coordination of each plan with programs under 
consideration in the Air Force and the Army.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
      The conferees direct the Secretary of the Navy to submit 
the report described in the House report (H. Rpt. 104-131).
Air systems and weapons advanced technology
      The budget request included $17.1 million for air systems 
advanced technology in PE 63217N. The request contained no 
specific funding for the maritime avionics subsystems and 
technology (MAST) program. MAST is a fiscal year 1995 ``new 
start'' that focuses on the development of scaleable, open, 
fault-tolerant, and common avionics architectures.
      The House bill would authorize an additional $35.0 
million for the advanced anti-radiation guided missile (AARGM). 
The House report (H. Rept. 104-131) encouraged the Navy and the 
Air Force to pursue the technology objectives of the MAST 
program under respective avionics technology development 
programs and the Joint Advanced Strike Technology (JAST) 
program.
      The Senate amendment would authorize an additional $9.0 
million for rapid response technologies.
      The conferees agree to authorize an additional $35.0 
million in PE 63217N for AARGM and $9.0 million for rapid 
response technologies for the specific purposes detailed in the 
respective House and Senate reports (H. Rept. 104-131; S. Rept. 
104-112). The conferees also agree to authorize an additional 
$10.0 million for continuation of the MAST program in fiscal 
year 1996, and recommend that the Secretary of the Navy 
consider requirements for continuation of the MAST program in 
the Navy's fiscal year 1997 budget request.
Mobile off-shore base (MOBS)
      The budget request included $14.7 million in PE 63238N to 
begin using ARPA developed technology for a mobile offshore 
base (MOB) and to initiate sub-scale tests of a complete system 
for the purpose of evaluating risks associated with full scale 
construction.
      The House bill would authorize the budget request. The 
House report (H. Rept. 104-131), citing the potential cost of 
the MOBS system, noted that the Department of Defense had 
failed to comply with guidance provided in the Statement of 
Managers (H. Rept. 103-701) accompanying the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337). 
The House report directed that any fiscal year 1996 funds 
authorized and appropriated for MOBS or for the Landing Ship 
Quay/Causeway not be obligated until the Department provides 
the reports and certification previously directed by Congress.
      The Senate amendment would authorize the budget request.
      The House recedes from its restriction on the obligation 
of fiscal year 1996 funds for the MOBS project. The conferees 
note, however, the point made in the House report (H. Rept. 
104-131) about the large potential cost of the MOBS program if 
carried to completion. The conferees further note that, in 
accordance with section 2430, title 10, United States Code, 
MOBS qualifies as an Acquisition Category I major defense 
acquisition program. Therefore, it is subject to the review and 
approval procedures for major defense acquisition programs 
established in Department of Defense instructions, regulations, 
and procedures. Under these review and approval procedures, a 
Milestone 0 (concept exploration and definition) review of the 
MOBS project is required by the Defense Acquisition Board 
(DAB). The conferees direct the Secretary of Defense to report 
to the congressional defense committees, by March 31, 1996, the 
plan and schedule for incorporating MOBS into the DAB process 
and accomplishing a Milestone 0 review.
Medical development
      The conferees agreed to authorize an additional $1.0 
million (PE 63706N) for acceleration of blood storage 
development and an additional $3.0 million (PE 63706N) for the 
Naval Biodynamics Laboratory (NBDL) for infrastructure transfer 
activities.

Sensor integration and decision support systems

      The budget request contained $17.8 million in PE 63707N 
for advanced development of manpower, personnel, and training 
technology, including $1.1 million for air human factors 
engineering.
      The House bill would authorize an additional $1.5 million 
in PE 63707N for development and evaluation of intelligent, 
multi-source, multi-platform sensor integration and cockpit 
decision support systems.
      The Senate amendment would authorize the budget request.
      The House recedes.
Navy advanced technology demonstration
      The budget request included $96.8 million in PE 63792N 
for advanced development and demonstration of high payoff, 
emerging technologies that could significantly improve Navy 
warfighting capabilities.
      Both the House bill and the Senate amendment would 
authorize the budget request.
      The conferees agree that the program for advanced 
technology demonstration of low cost, highly accurate guidance 
and control for improved naval surface fire support from 
surface 5" guns shall be fully funded at the level established 
in the budget request.
Remote controlled minehunting vehicle
      The budget request included $7.6 million in PE 63502N for 
development and demonstration of improvements in minehunting 
sonar and remotely controlled minehunting systems.
      The House bill would authorize an additional $1.65 
million in PE 63502N to accelerate the remote minehunting 
operational prototype (RMOP) development program and provide an 
interim operational capability to the fleet.
      The Senate amendment would authorize an additional $7.5 
million in PE 63502N to accelerate development of RMOP.
      The Senate recedes. The conferees agree that the mine 
detection and location capability demonstrated by the RMOP 
vehicle during a joint amphibious exercise in March-April 1995 
suggests that it has the potential to fill a gap in the Navy's 
mine countermeasures operational capabilities. Therefore, the 
conferees conclude that the RMOP program should be accelerated 
to provide a contingency capability for fleet use. The 
conferees encourage the Secretary of the Navy to include 
additional funds for this purpose in the fiscal year 1997 
budget request.
Non-acoustic antisubmarine warfare program
      The House bill would authorize $23.2 million to 
reestablish a separate Navy non-acoustic antisubmarine warfare 
(NAASW) program in PE 63528N that would be on par with the 
Department of Defense's advanced sensor applications program.
      The Senate amendment contained no funding for a Navy 
specific research and development program. However, the Senate 
amendment did provide $10.0 million of additional funding in PE 
63714D, the Department of Defense's advanced sensor 
applications program, to continue development for a NAASW 
program, ATD-111, that is being executed by the Navy.
      The conferees authorize an increase of $10.0 million in 
PE 63528N for the ATD-111 NAASW program. The funding is 
authorized to: (1) test system upgrades; (2) correct system 
defects identified during field tests; (3) bring the test 
systems to a common configuration; and (4) evaluate carriage on 
alternate airborne platforms.
      The conferees recommend that the Navy conduct a 
comparative evaluation of the ATD-111 laser radar (LIDAR) 
system with other approaches. Comparative testing of competing 
non-acoustic approaches to antisubmarine warfare and other 
applications should provide a basis for establishing a firm 
requirement for follow-on systems.
      The conferees also agree that there is a need for two 
viable, independent, but coordinated and complementary NAASW 
programs, one in the Navy and one in the Office of the 
Secretary of Defense. To reestablish the Navy's independent 
NAASW program, the conferees encourage the Secretary of the 
Navy to provide funding for it in the fiscal year 1997 budget 
request. Further guidance with respect to the NAASW program is 
contained in the classified annex.
Advanced submarine technology development
      The budget request included $18.4 million in PE 62121N 
for exploratory development of submarine systems technology and 
$30.9 million in PE 63561N for advanced submarine systems 
development.
      The House bill would authorize an increase of $10.0 
million in PE 62121N. Of this amount, $7.0 million is to 
continue the transfer of technology to the Navy for active 
control of machinery platforms demonstrated in the Advanced 
Research Projects Agency's (ARPA's) Project M. The House bill 
would also authorize an additional $13.1 million in PE 63561N. 
The House report (H. Rept. 104-131) expressed concern over the 
overall reduction in submarine research and development 
funding, reflecting in the budget request, and the belief that 
this level of funding would be inadequate to support the type 
of long-term research necessary to ensure the availability of 
advanced technologies that could maintain the superior 
technological capability of the U.S. submarine force. The House 
report directed the Secretary of Defense to develop a plan for 
long-term submarine research and development aimed at ensuring 
U.S. technological superiority and to report this plan to the 
congressional defense committees with the submission of the 
fiscal year 1997 budget request.
      The Senate amendment would approve the budget request.
      The conferees agree to an increase of $10.0 million in PE 
62121N. This increase would not include any reservations for 
ARPA's Project M. The conferees would authorize the transition 
effort associated with Project M in PE 63569E. The conferees 
also agree to an increase of $20.0 million in PE 63561N. The 
conferees would also adopt a provision, discussed in greater 
detail in the procurement section of the conference report, 
that would direct the Secretary of the Defense to develop a 
plan for long-term submarine research and development aimed at 
ensuring U.S. technological superiority and to report this plan 
to the congressional defense committees no later than March 15, 
1996.
Intercooled recuperated gas turbine engine
      The budget request included $25.6 million in PE 63508N, a 
technology base program element, for continued development of 
the intercooled recuperated (ICR) gas turbine.
      The House bill expressed concern that the budget request 
had transferred the ICR gas turbine engine from the Advanced 
Surface Machinery (ASM) Program (PE 63573N), where it had been 
previously budgeted, because of the possibility of disruption 
in the relationship between the ICR program and other elements 
of the ASM program. In order to restore ASM program integrity, 
the House bill would direct the transfer of $25.6 million from 
PE 63508N to PE 63573N. Additionally, the House bill would 
increase funding for the ICR engine by $21.5 million to support 
ICR engine tests at the Navy's land-based test site and, based 
on elements of the Navy's revised ICR development plan, direct 
the Navy to proceed with a second 500 hour engine test and 
other associated testing at the site.
      The Senate amendment also directed transfer of $25.6 
million from PE 63508N to PE 63573N, but did not increase 
funding for the ICR engine.
      The conferees agree to a funding level of $82.9 million 
in PE 63573N. The conferees direct that, of the total amount 
authorized for PE 63573N, $41.0 million is authorized for the 
ICR program.
Cooperative engagement capability
      The budget request included $180.0 million in PE 63755N 
for development of the cooperative engagement capability (CEC).
      The House bill would authorize the requested amount, but 
would direct that no more than $102.0 million be obligated 
until the Secretary of Defense notifies the congressional 
defense committees that the test and evaluation master plan for 
the CEC program has been approved by the Director, Operational 
Test and Evaluation.
      The Senate amendment would add $22.5 million to continue 
accelerated development of the airborne component of CEC and an 
additional $20.0 million to accelerate joint Army-Navy and Air 
Force-Navy exploitation of CEC for cruise missile defense and 
theater missile defense.
      The conferees agree to an additional $42.5 million for 
CEC for the purposes described in Senate amendment. The House 
recedes from its funding limitation. The conferees note the 
concerns expressed in the House report (H. Rept. 104-131) 
regarding developmental testing and independent operational 
testing required to insure that the CEC is operationally 
effective and suitable when deployed to the fleet. They direct 
the Secretary of the Navy to submit to the congressional 
defense committees, by March 31, 1996, a report on the status 
of plans for developmental and independent operational testing 
of the CEC.

Naval surface fire support

      The Navy's budget request included $12.0 million in PE 
63795N to develop the gun weapon system technology needed by 
the Navy to resolve major deficiencies in its ability to 
provide naval surface fire support (NSFS) to amphibious 
operations.
      The House report (H. Rept. 104-131) noted that the budget 
request was sharply reduced during the budget formulation 
process. It further observed that the future years defense plan 
for gun system technology had been left under funded by over 
$160 million and did not include an adequate plan to meet long-
term requirements for advanced NSFS weapons systems. To address 
these concerns the House bill would increase funding in PE 
63795N by $25.0 million to:
            (1) accelerate the development of a long range 
        guided projectile that would incorporate advanced low 
        cost global positioning system/inertial navigation 
        system (GPS/INS) guidance;
            (2) improve the existing MK-45 5-inch naval gun; 
        and
            (3) permit the Navy to place increased emphasis on 
        satisfying long-term requirements for advanced gun 
        systems in addition to its near-term focus on 
        modifications to the MK-45 gun.
      The Senate amendment would add $19.2 million to PE 
63795N. The Senate's evaluation noted in the Senate report (S. 
Rept. 104-112) of the Navy's NSFS program, as reflected in the 
budget request, yielded conclusions similar to those of the 
House.
      The conferees note that in May 1995 the Secretary of the 
Navy, based on a recently completed cost and operational 
effectiveness analysis (COEA), reported the following 
conclusions to Congress regarding NSFS:
            (1) a 155 millimeter/60-caliber naval gun, 
        employing precision guided munitions, is the most cost 
        effective NSFS solution; and
            (2) a combination of guns, missiles, and tactical 
        aviation is needed to fully meet NSFS requirements.
      The Secretary also reported that, as a result of the NSFS 
COEA, the Navy's NSFS program had been structured to:
            (1) proceed with the long-term development of a 155 
        millimeter gun;
            (2) develop a gun-launched precision guided 
        munition; and
            (3) modify the Navy's existing MK-45, 5-inch gun to 
        deal with long-term and near-term challenges.
      However, as reflected in the budget request, 
affordability constraints and a desire to field an enhanced 
NSFS capability prior to Fiscal Year 2001 have moved the Navy 
to embrace a near-term program reflecting the following 
priorities:
            (1) develop a global positioning system/inertial 
        navigation system 5-inch guided projectile;
            (2) improve the existing MK-45 5-inch gun; and
            (3) demonstrate the NSFS capabilities of Army 
        Tactical Missile System (ATACMS), Sea Standoff Land 
        Attack Missile (SLAM), and STANDARD Missiles.
      To confirm the cost effectiveness of this near-term 
approach, which was not thoroughly evaluated in the NSFS COEA, 
the Navy has directed the Center for Naval Analysis to perform 
supplemental analysis to evaluate its cost effectiveness. The 
need for this supplemental analysis was reinforced by the 
General Accounting Office, which strongly recommended in May 
1995 that the Navy revalidate its NSFS requirements and conduct 
a comprehensive supplemental analysis to the COEA that would 
include all available gun and missile alternatives.
      The conferees agree to authorize $34.0 million, an 
increase of $22.0 million, in PE 63795N. Over the past several 
years, the conferees have repeatedly stressed the issue of 
NSFS, but have found the Navy's response to be highly variable 
as new programs or approaches have succeeded one another from 
year to year. Because of a strong need and the Navy's apparent 
commitment to pursue the program to completion, the conferees 
are willing to provide initial support, in fiscal year 1996, to 
the Navy's effort to upgrade the capability of its 5-inch guns 
and projectiles. The conferees take this action based on the 
Navy leadership's assurances that the Navy will follow through 
with consistent, stable, and adequate future years funding.
      The conferees affirm their conclusion that the Navy needs 
to place increased emphasis on pursuing a long-term program to 
satisfy NSFS mission requirements. The conferees direct that 
the Secretary of the Navy include a report on the plans for 
such a program in the fiscal year 1997 budget submission. The 
conferees also affirm the need for an updated COEA that 
considers all available gun and missile alternatives, including 
extended range multiple launch rockets and existing and 
improved 5-inch guns, to support future acquisition milestone 
decisions related to the Navy's near-term and long-term 
programs.
AH-1W integrated weapons system upgrade
      The budget request included $14.9 million in PE 64212N 
for engineering and manufacturing development of upgrades to 
the AH-1W Cobra attack helicopter for the Marine Corps.
      The House bill recommended a reduction of $11.6 million 
to the budget request, based on the understanding that the 
Marine Corps had decided to suspend development of the 
integrated weapon systems (IWS) for the AH-1W.
      The Senate amendment would authorize the budget request.
      The House recedes. The conferees understand that the 
Department of the Navy has suspended the IWS upgrade, based on 
identification of other urgent requirements for modification of 
Marine Corps helicopters. The upgrade program would now focus 
on the adaptation of both the AH-1W attack helicopter and the 
UH-1N utility helicopter, and their respective power trains, to 
a 4-blade rotor system which will increase the operational 
safety power margin and useful mission payload of both 
helicopters. The IWS upgrade for the AH-1W will be deferred 
until later in the program. The conferees further understand, 
based upon the Department's analysis, that the revised program 
will provide growth potential to bridge the gap until the joint 
replacement aircraft would become available around the year 
2020, and is reportedly more cost effective than the adoption 
of other, more modern attack and utility helicopters that have 
already been fielded or are under development.
      The conferees note that the Department plans a defense 
acquisition milestone II decision to proceed with engineering 
and manufacturing development in late fiscal year 1996 and also 
plans to use the fiscal year 1996 funds made available for the 
program for pre-milestone IV/II engineering studies. The 
conferees are aware of a Department of the Navy experience with 
harmonic coupling problems encountered during a previous major 
helicopter power train upgrade that contributed to a number of 
aircraft mishaps. Accordingly, this issue must be addressed in 
detail during pre-milestone engineering studies and in the 
milestone II decision process, and the absence of the problem 
demonstrated prior to milestone III. The Secretary of the Navy 
is directed to report the results of these engineering studies 
and the milestone II decision with the submission of the fiscal 
year 1998 budget request.
AV-8B Harrier weapons system improvements
      The budget request included $11.3 million in PE 64214N 
for integration and testing of weapons and aircraft 
improvements for the AV-8B Harrier aircraft.
      The House bill would authorize an increase of $15.6 
million to the budget request to support the United States' 
share of the AV-8B production memorandum of understanding 
between the United States, Spain, and Italy, and for concurrent 
integration of the AIM-120 missile and 1760 data bus during 
remanufacture of the day-only AV-8As to the AV-8B radar 
configuration.
      The Senate amendment would authorize the budget request.
      The Senate recedes. The conferees agree to authorize the 
increase of $15.6 million to the budget request with the 
understanding that the Department of the Navy would include in 
the fiscal year 1997 budget request the balance of the $11.7 
million required by the memorandum of understanding.
S-3B Project Gray Wolf
      The budget request included $12.9 million in PE 64217N 
for continued development of weapon system improvements for the 
S-3 aircraft.
      The House bill would authorize an additional $15.0 
million for continued evaluation and potential establishment of 
an advanced concept technology demonstration of ``Project Gray 
Wolf,'' a fleet proof of concept demonstration of the ability 
of an S-3B aircraft equipped with a multi-mode synthetic 
aperture radar designed to provide real time stand-off 
surveillance, targeting, and strike support for littoral 
operations.
      The Senate amendment would authorize an additional $13.2 
million for the same purpose.
      The conferees agree to authorize the requested amount.
      The conferees agree that ``Project Gray Wolf'' 
demonstrates potential for providing the Department of the Navy 
with a versatile carrier-based capability to provide real time, 
stand-off surveillance, targeting, and strike support. The 
conferees encourage the Secretary of the Navy to consider a 
reprogramming request to support this program, should any funds 
become available during fiscal year 1996. The conferees further 
encourage the Secretary to include funds for the program in his 
fiscal year 1997 budget request.

P-3 maritime patrol aircraft sensor integration

      The budget request included $1.9 million in PE 64221N for 
the P-3 maritime patrol aircraft (MPA) modernization program.
      The House bill would authorize an increase of $15.0 
million to the budget request. That increase would include 
$12.0 million to restore the schedule for integration of the 
improved extended echo ranging (IEER) and the anti-surface 
warfare improvement program (AIP) capabilities in the P-3, and 
$3.0 million for upgrade of P-3 stores management, to permit 
integration of advanced weapons systems. In relation to the 
fiscal year 1995 budget projections for fiscal year 1996, the 
House report (H. Rept. 104-131) noted that sharp funding 
reductions in the P-3 modernization program would result in an 
overall program cost increase and multi-year delays in fielding 
capability improvements needed to offset decreases in MPA force 
structure. The House report also expressed the House's 
expectation that the Navy's future budget requests would 
include the increased funding necessary to complete the IEER 
and AIP capabilities integration in the P-3, the P-3 stores 
management upgrades, and procurement of sufficient quantities 
of the AIP and update III kits to appropriately outfit the 
active and reserve MPA force.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Air crew systems development

      The budget request included $9.8 million in PE 64264N for 
the development of aviation life support systems for air crews.
      The House bill would authorize an increase of $7.9 
million to transition the Navy's Day/Night/All Weather Helmet 
Mounted Display to operational evaluation in F/A-18 and AV-8B 
aircraft, to upgrade current escape systems, and to develop 
crashworthy troop seats in the H-1, H-3 and H-46 helicopters.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
AEGIS combat systems engineering
      The budget request included $105.9 million in PE 64307N, 
including $90.0 million for continued development of 
improvements in the AEGIS combat system.
      The House bill would authorize $89.9 million, a reduction 
of $15.8 million from the requested amount. In support of the 
funding reduction, the House report (H. Rept. 104-131) cited 
the deferred release of fiscal year 1995 funds, which led to a 
corresponding, but unnecessary, increase in the Navy's budget 
request. The House report (H. Rept. 104-131) also expressed 
concern about the Navy's revised strategy for development of 
the AEGIS baseline 6.
      The Senate amendment would authorize the requested 
amount.
      The conferees agree to a reduction of $11.0 million in PE 
64307N for AEGIS combat systems engineering. The conferees note 
that the Navy included the $11.0 million in its budget request 
in anticipation of losing $15.8 million of fiscal year 1995 
funds through the omnibus reprogramming process. The use of 
these fiscal year 1995 funds as a reprogramming source has been 
specifically denied by Congress. The conferees direct the 
Office of the Secretary of Defense to return these funds to the 
Navy without delay to permit orderly execution of the AEGIS 
program. Further, the navy should review its program for 
development of the AEGIS baseline 6 with a view to minimizing 
concurrency.
Enhanced modular signal processor
      The budget request included $8.3 million in PE 64507N for 
development and risk mitigation testing of the AN/UYS-2 
enhanced modular signal processor (EMSP) and software 
development, integration, testing, and critical engineering 
design support in the airborne low-frequency sonar (ALFS), 
surveillance towed array sensor system (SURTASS), AN/SQQ-89 
surface combat system, and AN/BSY-2 submarine combat system.
      Both the House bill and the Senate amendment would 
authorize the budget request.
      The conferees understand that the Navy is considering 
development of a commercial-off-the-shelf (COTS) variant of the 
EMSP, as discussed in the House report (H. Rept. 104-131). The 
conferees authorize an increase of $6.5 million in PE 64507N 
for development of this COTS variant. The conferees encourage 
the Navy to include additional funds that may be required to 
complete the EMSP COTS development in its fiscal year 1997 
budget request.
Submarine combat system
      The budget request included $42.3 million in PE 64524N 
for development of the AN/BSY-2 submarine combat system.
      The House bill would reduce the authorization by $6.2 
million, the amount requested for delivery of the AN/BSY-2 
system for the SSN-23.
      The Senate amendment would authorize the budget request.
      The House recedes.
Submarine tactical warfare system
      The budget request included $38.5 million in PE 64562N 
for continued development of improvements in SSN combat control 
systems.
      The House bill recommended a reduction of $18.0 million 
to the budget request.
      The Senate amendment would authorize the requested 
amount.
      The House recedes.
Advanced tactical air command central
      The budget request included $8.4 million in PE 604719M to 
continue development of the advanced tactical air command 
central (ATACC) for the Marine Corps.
      The House bill would reduce the PE by $5.0 million and 
direct that the details of the operational requirement and a 
revised program plan be provided with the fiscal year 1997 
budget request. The house report (H. Rept. 104-131) expressed 
concerns regarding the marked growth in program costs for 
fiscal year 1996 and succeeding years, changes in the 
acquisition strategy, and significant revisions in the program 
schedule. These concerns raise questions regarding how well the 
operational requirement is defined and whether the system 
should continue in engineering and manufacturing systems 
development, or whether a demonstration/validation program 
would be more appropriate.
      The Senate amendment would authorize the requested 
amount.
      The House recedes.
      The conferees agree that the concerns expressed by the 
House should be addressed following submission of the fiscal 
year 1997 defense budget request.
Ship self-defense system

                                summary

      The budget request included $166.0 million in PE 64755N 
for the ship self-defense program.
      The House bill would approve the budget request. The 
House report (H. Rept. 104-131) expressed concern that the Navy 
had failed to include funding in its budget request to continue 
development of either the infrared search and track (IRST) 
system or NULKA, an electronic warfare countermeasures system, 
despite the apparently high priority that the Navy has placed 
on these systems in the past. The House report argued that such 
funding lapses point to the absence of clearly defined program 
baselines in the ship self-defense programs.
      The Senate amendment would authorize $184.5 million in PE 
64755N, an increase of $18.5 million. It would authorize an 
additional $9.5 million for IRST and $9.0 million for NULKA. 
The Senate report (S. Rept. 104-112) also discussed evaluation 
of existing self-defense systems, such as the BARAK 1 missile 
system, for installation on active and new construction Navy 
ships.
      The conferees agree to authorize $183.5 million for the 
ship self-defense program in PE 64755N. Funding increases and 
areas of emphasis are discussed in the following paragraphs. 
The conferees also agree that the year-to-year volatility of 
the Navy's budget requests for ship self-defense programs 
appear to contradict the Navy's oft stated emphasis on littoral 
warfare. Therefore, the conferees direct the Secretary of the 
Navy to provide to the congressional defense committees, as a 
part of the annual update of the ``Ship Anti-Air Warfare (AAW) 
Report'', an assessment of progress in establishing program 
baselines for the ship self-defense program and the degree to 
which these baselines are being met.

                                  irst

      The budget requested reduced funding for and restructured 
the infrared search and track (IRST) program for affordability 
reasons. The conferees believe that the IRST system has the 
potential to play a very important role in defending naval 
ships against sea skimming antiship missiles. A recently 
completed cost and operational effectiveness analysis (COEA) 
supports this conclusion. The conferees agree that the Navy 
should emphasize early integration of the IRST system with both 
Aegis and non-Aegis ships, and place priority on early 
completion of its development. Therefore, the conferees 
authorize an increase of $9.5 million in PE 64755N to 
accelerate plans for combat system integration and design of 
the IRST system.

                                 nulka

      NULKA is a joint United States/Australian project to 
develop an anti-ship missile decoy system. Increased funding in 
fiscal year 1996 would allow the Navy to integrate NULKA with 
the ship self-defense system (SSDS), for installation on 
amphibious ships and other self-defense ships, to conduct 
testing of the integrated system, and to commence development 
of improvements to the payload needed to counter improvements 
in anti-ship missile technology. The conferees strongly support 
these objectives and authorize an increase of $8.0 million in 
PE 64755N.

                                barak 1

      The Senate report expressed concern about the need to 
protect Navy ships from the proliferation of maneuvering, sea-
skimming, low observable, anti-ship cruise missiles. It also 
recognizes the fact that the Navy's evaluation of existing 
systems, such as the BARAK 1 missile, as candidates for the 
LPD-17 class's self-defense suite, could produce the most cost-
effective solution to this threat. Development costs could be 
avoided through such an approach.
      While addressing ship self-defense in some detail, the 
House report did not discuss this aspect of the requirement.
      The conferees agree that the incorporation of weapons 
systems that are already in production, such as BARAK 1, into 
the combat systems of active or new construction ships could be 
a cost effective means to deal with a rapidly proliferating and 
evolving cruise missile threat. The conferees desire to be kept 
informed on the progress and results of the LPD-17 cost and 
operational effectiveness analysis (COEA). Furthermore, the 
conferees direct the Navy to present, by February 1996, a plan 
that could lead to testing of the BARAK 1 system in the United 
States during fiscal year 1996, should the LPD-17 COEA 
demonstrate that self-defense systems such as BARAK 1 would be 
cost effective.
      Because of the advantage to the fleet of an early 
deployment of a robust ship self-defense system, the committee 
directs the Navy to also examine and report on BARAK 1 
applicability to other ship classes. The results of this 
analysis should be provided to the congressional defense 
committees by February 1996.
Fixed distributed system--deployable
      The budget request included $93.5 million in PE 64784N 
for the fixed distribution surveillance system (FDS), but 
included no funding for the deployable (FDS-D) prototype.
      The House bill would add $10.0 million to the budget 
request to refurbish the FDS-D prototype and improve its 
capability to provide an interim deployable undersea 
surveillance, until the Advanced Deployable System becomes 
available.
      The Senate amendment would authorize the budget request.
      The conferees authorize $103.5 million in PE 64784N, of 
which $10.0 million would be used to refurbish the FDS-D 
prototype and improve its surveillance capability. Further 
guidance is contained in the classified annex.

SSBN security and survivability program

      The budget request included $25.1 million in PE 12224N 
for the SSBN security and survivability program.
      The House bill would provide an increase of $9.5 million 
to the budget request. The House bill would also direct the 
Secretary of the Navy to provide to the congressional defense 
committees, within 60 days of enactment, an assessment of the 
potential threat to the U.S. SSBN force an analysis of the SSBN 
security program needed to counter that threat.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an additional $5.5 
million in PE 12224N for the SSBN security and survivability 
program. The conferees agree with the House direction to the 
Secretary of Defense regarding the SSBN security program, 
contained in the House report (H. Rept. 104-131). Further 
guidance regarding the program is provided in the classified 
annex.

Cryptologic system trainer

      The budget request included $7.0 million in PE 24571N to 
continue development and evaluation of the Navy's surface 
tactical team trainer.
      The House bill would authorize an additional $3.0 million 
for:
            (1) integration and evaluation of the cryptologic 
        systems trainer in the battle force tactical training 
        system; and
            (2) the development of related information warfare/
        command and control warfare shipboard training systems.
      The Senate amendment would authorize the budget request.
      The conferees authorize $10.0 million in PE 24571N. Of 
this amount, $3.0 million is for the purposes discussed in the 
House report (H. Rept. 104-131).
Optoelectronics
      The budget request did not include funding for 
optoelectronics manufacturing.
      The House bill would provide $10.0 million to initiate 
partnerships with industry, government laboratories and other 
research organizations to allow the development of 
manufacturing technologies that would support optoelectronics 
devices and components.
      The Senate amendment contained no similar provision.
      The conferees agree to authorize an additional $10.0 
million for this program in PE 78011N. The conferees also agree 
to authorize an additional $2.0 million for advanced bulk 
manufacturing of mercury cadmium telluride (MCT) for low cost 
sensors, also in PE 78011N.
Overview
      The budget request for fiscal year 1996 contained an 
authorization of $12,598.4 million for Air Force, Research and 
Development in the Department of Defense. The House bill would 
authorize $13,184.1 million. The Senate amendment would 
authorize $13,087.4 million. The conferees recommended an 
authorization of $12,914.9 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Defense research sciences

      The budget request included $239.893 million for defense 
research sciences in PE 61102F.
      The House bill would authorize an additional $5.0 million 
for adaptive optics research.
      The Senate amendment would reduce the budget request by 
$9.0 million and authorize $5.0 million for adaptive optics 
research.
      The conferees agree, that of the $249.5 million 
authorized in this program element, $5.0 million shall be 
authorized for adaptive optics research.

Robotics corrosion inspection system

      The House bill would authorize $8.0 million in PE 62102F 
to conduct a competitive program to demonstrate the feasibility 
of non-contact robotic corrosion inspection for detection of 
hidden corrosion and metal fatigue.
      The Senate amendment did not include such authorization.
      The conferees strongly encourage the Air Force to 
consider environmentally benign technologies that demonstrate 
the potential to provide a 25 percent savings in cargo and 
fighter aircraft inspection and repair costs through the use of 
non-contact robotic corrosion inspection.

Firefighting clothing

      The conferees encourage the Department of Defense to 
continue to make greater use of commercial off-the-shelf 
technologies that meet military requirements without extensive 
development programs. The conferees are aware of recent 
commercial developments in thermal absorbing materials that 
would have the po- tential to significantly increase personnel 
protection for fighting aircraft, ship-board, and chemical 
fires. Accordingly, the conferees authorize an additional $1.25 
million in PE 62201F for the development of a firefighting suit 
that would incorporate these technologies.

Aerospace propulsion

      The budget request included $3.7 million in PE 62203F for 
the high thermal stability and the endothermic hydrocarbon 
fuels project 3048.
      The House bill and Senate amendment would authorize an 
additional $3.0 million for the acceleration of this project.
      The conferees agree that of the $75.0 million authorized 
for this program element that $6.7 million be authorized for 
project 3048.

High frequency active auroral research program (HAARP)

      The conferees agree to a $5.0 million increase in PE 
62601F for the high frequency active auroral research program 
(HAARP).

Rocket propulsion technology

      The House bill would authorize an additional $13.0 
million for rocket propulsion technology programs in PE 62601F, 
PE 63302F, and PE 62111N.
      The Senate amendment contained no similar provision.
      The conferees agree to provide an additional $13.0 
million, as specified in the House report (H. Rept. 104-131).

Computer security

      The budget request included $98.5 million for Command, 
Control, and Communications in PE 62702F.
      The House bill would authorize an additional $3.0 million 
to evaluate voice recognition computer security systems.
      The Senate amendment contained no similar authorization.
      The conferees direct that, of the $96.5 million 
authorized, $3.0 million be authorized for evaluation of voice 
recognition computer security systems, as specified in the 
House report (H. Rept. 104-131).

Aircraft ejection seats

      The budget request included $19.0 million in PE 63231F 
for crew systems and personnel protection technology.
      The House bill would authorize an additional $3.0 million 
to test existing Navy, Marine Corps, and Air Force front-line 
trainer and tactical aircraft ejection seats. Ejection seat 
tests would be conducted to verify predicted performance and to 
identify existing problems and the required corrective action.
      The Senate amendment had no similar provision.
      The conferees agree to authorize an additional $3.0 
million in PE 63231F for the purposes specified in the House 
report (H. Rept. 104-131).

Micro-satellite development program

      The budget request included $32.6 million in PE 63401F 
for Advanced Spacecraft Technology.
      The Senate amendment would authorize an additional $20.0 
million for a micro-satellite development program.
      The House bill would authorize the budget request.
      The House recedes.
      The Air Force Phillips Laboratory, in conjunction with 
the Air Force Space Command's Space Warfare Center, has 
initiated a small satellite program to develop and demonstrate 
a variety of miniaturized space technologies. The micro-
satellite program builds upon the highly successful Clementine 
satellite program. The conferees strongly support this effort 
and direct that it be placed under the control of the Space 
Warfare Center and be executed by the Clementine Team (Phillips 
Laboratory, Naval Research Laboratory, and Lawrence Livermore 
National Laboratory).

Intercontinental ballistic missile (ICBM) research and development and 
        associated issues

                     icbm demonstration/validation

      The budget request included $20.3 million in PE 63851F 
for six Minuteman-related projects.
      The House bill would authorize an additional $14.5 
million to complete acquisition and requirement documentation 
efforts and to conduct missile guidance technology experiments. 
The House report (H. Rept. 104-131) expressed concern that the 
budget request failed to include pre-milestone 0 and phase 0 
funding for the command signal decoder, the modified miniature 
receive terminal for launch control centers, the safety 
enhanced reentry vehicle, and inertial measurement 
modifications.
      The Senate amendment would authorize an additional $4.3 
million to bolster the Air Force reentry vehicle applications 
project. The Senate report (S. Rept. 104-112) expressed concern 
that the reentry vehicle nose tip requirements were not 
adequately funded.
      The conferees agree to authorize the budget request. The 
conferees also reiterate the concerns expressed in the House 
and Senate reports. The conferees understand that the Air Force 
is considering options to address these concerns from within 
their existing fiscal year 1996 budget, in particular the 
documentation issues identified in the House report. The 
conferees strongly urge the Air Force to fulfill these 
requirements.

             icbm engineering and manufacturing development

      The budget request contained $192.7 million in PE 64851F 
to fund the Minuteman guidance and propulsion replacement 
programs.
      The House bill would authorize an additional $8.0 million 
to fund the initial integration design and testing of the 
capability to integrate the Mk21 warhead on the new Minuteman 
guidance set. The House report (H. Rept. 104-131) endorsed 
using the Mk21, the safest warhead in the inventory, on the 
Minuteman, if and when it becomes available as a result of arms 
control treaties. The House report expressed concern that the 
current guidance replacement program fails to fund the design 
and testing necessary to ensure the Mk21 capability prior to 
initiation of the guidance set production.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request. The 
conferees, however, reiterate the concerns expressed in the 
House report (H. Rept. 104-131), and support the 
recommendations made therein. The conferees are concerned that 
the Department of Defense and the Air Force have failed to take 
the necessary action to ensure that the safest nuclear warheads 
are compatible with the new Minuteman guidance sets. Therefore, 
the conferees direct that, of the funds authorized for fiscal 
year 1996 in PE 64851F, up to $4.0 million shall be available 
to initiate efforts to ensure that the new Minuteman guidance 
sets are capable of accommodating the Mk21 warhead. The 
conferees further direct the Secretary of Defense to ensure 
that the funds necessary to continue this effort are included 
in the fiscal year 1997 budget request.

                       reentry vehicle materials

      The Senate amendment would authorize $750,000 above the 
budget request in PE 62102F for the Thermal Protection 
Materials Reentry Vehicle project to purchase, test, and 
evaluate three nose tip billets and related technologies.
      The House bill would not authorize additional funds for 
reentry vehicle materials.
      The Senate recedes. Nevertheless, the conferees reiterate 
the concerns expressed in the Senate report (S. Rept. 104-112) 
regarding the adequacy of the reentry vehicle applications 
program, and, in particular, the reentry vehicle materials 
program. Therefore, the conferees direct that, of the funds 
available in PE 62102F, up to $750,000 shall be available for 
the Thermal Protection Materials Reentry Vehicle project to 
purchase, test, and evaluate three ICBM reentry vehicle nose 
tip billets and related thermal technologies.

                      ballistic missile technology

      The budget request contained $3.1 million in PE 63311F to 
conduct guidance and range safety technology experiments.
      The House bill would authorize an additional $5.7 million 
for Minuteman class range tracking and safety equipment based 
on Global Positioning System (GPS) equipment developments.
      The Senate amendment would authorize an additional $5.0 
million for suborbital flight testing conducted at White Sands 
Missile Range for ballistic missile guidance, range tracking, 
and safety equipment, based on existing GPS equipment.
      The conferees agree to authorize $5.7 million above the 
budget request to enhance ballistic missile technology 
experiments and to proceed with a follow-on to the successful 
Missile Technology Demonstration Flight 1 (MTD-1). The 
conferees commend the participants in this joint effort and 
encourage the Air Force, the Ballistic Missile Defense 
Organization, the Defense Nuclear Agency, and the Phillips 
Laboratory to continue to pursue such joint efforts. Prior to 
completing plans for a MTD follow-on, the conferees direct the 
Air Force to consult with the Senate Committee on Armed 
Services and the House Committee on National Security on the 
issues and options associated with the following: (1) the 
technologies to be tested; (2) the type of booster 
configuration to be employed; and (3) the test range to be 
used.

                    peacekeeper contingency planning

      The conferees direct the Secretary of the Air Force to 
submit a report to the congressional defense committees, by 
March 1, 1996, that outlines the Air Force's current plans for 
retiring Peacekeeper, and maintaining the system in the 
interim. The report should also address the additional actions 
and funding that would be required to maintain the option of 
retaining up to 50 Peacekeeper ICBMs in an operational status 
beyond 2003. The report should include a timetable that 
outlines when such actions and funding would be needed.

Weapon impact assessment system

      The conferees are aware of innovative technologies that 
may significantly resolve the battlefield damage assessment 
problems related to tactical aviation. The conferees support 
the priorities established in the fiscal year 1996 Department 
of Defense Small Business Innovative Research Program 
solicitation (96.1) to expeditiously pursue weapon impact 
assessment technology. Accordingly, the conferees authorize 
$950,000, distributed equally between PE 64618N and PE 64618F, 
for a joint Navy-Air Force flight demonstration of a weapon 
impact assessment system that uses a video sensor-transmitter 
with precision guided munitions.

Stand-off land attack missiles

      The budget request contained $40.5 million in PE 64603N 
for continued development of the stand-off land attack missile-
enhanced response (SLAM-ER) as an interim replacement for the 
canceled tri-service stand-off attack missile (TSSAM) for the 
Navy.
      The House bill would authorize the budget request for 
SLAM-ER. However, the House report (H. Rept. 104-131) would 
prohibit the Navy from obligating more than $10.0 million for 
the program without specific approval by the congressional 
defense committees.
      The House bill would also provide an additional $37.5 
million in PE 64312N for the Navy and an additional $37.5 
million in PE 27160F for the Air Force to establish a joint 
program for accelerated development and evaluation of candidate 
joint air-to-surface stand-off missile (JASSM) systems as a 
near-term replacement for TSSAM. The House report would direct 
the Secretary of Defense to establish immediately such a 
program and would further direct the Secretary to report to the 
congressional defense committees within 60 days of the 
enactment of the Act on:
            (1) the Department's plan to address near-term Navy 
        and Air Force requirements for an interim TSSAM 
        replacement;
            (2) the Department's plans to satisfy these near-
        term requirements; and
            (3) the long-term plan for development of a TSSAM 
        replacement that will satisfy the requirements of both 
        services.
      The Senate amendment would authorize the budget request 
in PE 64603N for continued development of SLAM-ER, and would 
provide an additional $50.0 million for the Air Force in PE 
27160F to initiate a JASSM program, with the expectation that 
the Department of Defense would establish a joint program to 
meet Air Force and Navy needs for a replacement for TSSAM.
      The House recedes with an amendment. The conferees agree 
to:
            (1) authorize the SLAM-ER budget request;
            (2) provide $25.0 million for JASSM in the Air 
        Force budget; and
            (3) require the Department to report on plans for 
        meeting near-term and long-term Air Force and Navy 
        requirements for stand-off weapons systems.

             joint air-to-surface stand-off missile (jassm)

      In testimony before the Congress this year, the Air Force 
and the Navy continued to support the requirement for a 
survivable, precision strike stand-off weapon. The DOD decision 
to cancel the TSSAM program exacerbated an already significant 
shortfall in this capability. The conferees stress the urgent 
need for the operational capability that would be provided by 
the TSSAM, and expect the Secretary of Defense to establish a 
joint program in the Air Force and the Navy for development of 
a TSSAM replacement, as recommended in both the House report 
(H. Rept. 104-131) and the Senate report (S. Rept. 104-112).
      The conferees are concerned about the approach the 
services may pursue to fulfill the JASSM requirement. The 
conferees note that there are a number of competing 
alternatives upon which the JASSM could be based. The conferees 
believe that JASSM could evolve from a existing, or planned 
interim weapons system. The conferees believe that, if the 
Department decides that a new weapon development is 
appropriate, the new development program should be based on 
technologies that have already been developed in the TSSAM 
program, or in other existing or planned stand-off weapons 
systems, including technologies relating to low and very low 
observability/stealth.
      The conferees note that there are a number of competing 
alternatives upon which the JASSM could be based, and want to 
ensure that due consideration is given to all competing 
approaches. Therefore, the conferees direct the Department to 
consider the following in conducting the JASSM program: (1) the 
results of the TSSAM development program, and the potential for 
using technology and components derived from that program; and 
(2) the results of programs for development of other stand-off 
weapons systems, and the potential for using technologies 
derived from those programs. The conferees direct the Secretary 
of Defense to include, in his report on precision guided 
munitions, information on the extent to which the Department 
may avail itself of TSSAM-derivative components and technology, 
as well as, components and technologies derived from other 
stand-off weapons programs, in meeting the JASSM requirement.

                            required report

      The conferees direct the Secretary of Defense to include 
in the report on the analysis required by the provision on 
precision guided munitions, the Department's plan for meeting 
near-term Navy and Air Force requirements for an interim TSSAM 
replacement and the long-term plan for development of a TSSAM 
replacement that will meet the requirements of both services. 
The conferees expect that the Department would establish the 
following for JASSM weapons system at the next milestone: 
design-to-unit cost goals; minimum performance parameters; and 
interface requirements between JASSM and launch platforms.

Mobile missile launch detection and tracking

      The conferees are aware of a proposal to use specialized 
processing techniques on synthetic aperture radar data to 
detect medium-rage ballistic missiles shortly after launch. The 
conferees urge the Air Force to consider this promising concept 
and agree to authorize the use of up to $1.0 million in funds 
made available in PE 28060F to demonstrate the feasibility of 
this concept.

Rivet joint technology transfer program

      The Senate amendment recommended a $28.0 million increase 
to the theater missile defense program element (PE 28060F) to 
initiate the migration of the Cobra Ball medium wave infrared 
acquisition technology for the Rivet Joint RC-135 tactical 
reconnaissance fleet.
      The House bill did not contain a similar recommendation.
      The Senate recedes.
      The conferees encourage the Air Force to move forward 
with this near term, cost effective program. With the transfer 
of this mature technology, the Rivet Joint fleet would offer 
early deployment and provide a significant improvement to the 
Department of Defense's capabilities in long range 
surveillance, warning, rapid cueing for attack operations, and 
impact point prediction. To achieve this goal, the conferees 
would consider a reprogramming in fiscal year 1996. The 
conferees understand that funds for the completion of this 
technology migration are included in the Air Force future year 
defense plans for this program.

Information systems security

      The budget request included $11.3 million in PE 33140F 
for the Air Force's Information Systems Security program.
      The Senate amendment would authorize an additional $1.5 
million to complete research and development of the Trusted 
RUBIX multi-level security database management system.
      The House bill would authorize the budget request.
      The House recedes.

Computer-assisted technology transfer

      The conferees agree to authorize $7.2 million in PE 
78011F to continue the computer-assisted technology transfer 
program.

Overview

      The budget request for fiscal year 1996 contained an 
authorization of $8,802.9 million for Defense-Wide, Research 
and Development in the Department of Defense. The House bill 
would authorize $9,287.1 million. The Senate amendment would 
authorize $9,271.2 million. The conferees recommended an 
authorization of $9,419.5 million. Unless noted explicity in 
the statement of managers, all changes are made without 
prejudice.


University research initiative

      The budget request included $236.2 million in PE 61103D.
      The House bill would authorize an additional $20.0 
million above the requested amount for the continuation of the 
Defense Experimental Program to Stimulate Competitive Research 
(DEPSCoR).
      The Senate amendment would apply a general reduction of 
$15.0 million to the requested amount and would add $10.0 
million for the acceleration of research activities at 
universities affecting combat readiness. The Senate amendment 
would also authorize $10.0 million within the authorized amount 
for the continuation of the DODDS Director's fund for Science, 
Mathematics, and Engineering.
      The conferees agree to an authorization of $231.2 million 
in PE 61103D, of which $20.0 million shall be for the 
continuation of the DEPSCoR program and $10.0 million for the 
continuation of the DODDS Director's fund for Science, 
Mathematics and Engineering. The conferees also agree to 
authorize an additional $10.0 million for the Combat Readiness 
Research program described on page 169 of the Senate report 
(104-112) and direct that an institution awarded a contract, 
grant or agreement under the program be required to contribute 
at least three times the amount provided by the Federal 
government to execute the program.

Chemical-biological defense program

      The budget request contained $383.5 million for the 
Department of Defense chemical-biological defense program, 
including $243.0 million for research, development, test and 
evaluation and $140.5 million for procurement of chemical and 
biological defense non-medical and medical systems.
      The House bill would authorize a $57.1 million increase 
to the budget request for the following chemical-biological 
defense research and development programs: $4.6 million for PE 
61384BP; $23.5 million for PE 62384BP; $12.6 million for PE 
63384BP; $4.4 million for PE 63884BP; and $12.0 million for PE 
64384BP. The House bill would also authorize a total of an 
additional $50.0 million in operations and maintenance funding 
for chemical defense training and chemical medical defense 
training in the Army, Navy, Marine Corps, and Air Force.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase to the 
budget request in the following program elements: $4.6 million 
for PE 61384BP; $7.8 million for PE 62384BP; $10.0 million for 
PE 63384BP; and $1.6 million for PE 63884BP. The increased 
authorizations would augment and accelerate research and 
development in medical and non-medical chemical and biological 
defense. Prior to obligation or expenditure of funds authorized 
above the budget request, the conferees direct the Department 
to report on the projected use of these funds.
      The conferees also agree to a $50.0 million increase in 
the military services operations and maintenance accounts for 
chemical defense training and chemical medical defense 
training. The conferees direct the Department to provide a 
report to Congress on the use of this increased funding in the 
Department's chemical defense training and chemical medical 
defense training. Additionally, the Department is directed to 
notify Congress 15 days in advance of obligation or expenditure 
of funds, and to provide a justification for the use of such 
funds in connection with the procurement of chemical-biological 
defense equipment.

Computing systems and communications technology

      The budget request included $403.9 million for computing 
systems and communications technology in PE 62301E.
      The House bill would reduce the budget request by $25.0 
million. The House bill would authorize an additional $11.0 
million for accelerated development of improved nuclear 
detection and forensic analysis capabilities.
      The Senate amendment would authorize an additional $3.0 
million for software reuse activities and $30.0 million in 
procurement for the global broadcast service.
      The conferees agree to authorize $396.3 million in PE 
62301E, to include: $11.0 million for nuclear monitoring and 
detection; $8.0 million for global broadcast service; $7.5 
million for software reuse; and a general reduction of $29.6 
million.

Global broadcast service

      The budget request contained no funds for global 
broadcast service (GBS).
      The Senate amendment would authorize $30.0 million in 
weapons procurement, Navy, for a GBS pilot program. The Senate 
report (S. Rept. 104-112) endorsed insertion of this technology 
into the military communications master plan and the Navy's 
proposal to use the ultra-high frequency follow-on (UFO) 
satellite system as a host for an interim GBS capability.
      Neither the House bill nor the House report (H. Rept. 
104-131) addressed the subject.
      The Senate recedes on the $30.0 million authorization in 
weapons procurement, Navy. The conferees, however, agree to 
authorize $8.0 million for fiscal year 1996 in PE 62301E to 
support this effort.
      The conferees endorse the Senate language regarding the 
insertion of DBS/GBS technology into the communications master 
plan. The conferees, however, do not believe that the 
Department of Defense (DOD) has adequately evaluated all 
alternatives and associated issues. The conferees support 
proceeding swiftly with this program, but require additional 
information before endorsing any particular technical approach 
or acquisition strategy.
      The conferees are aware of the time-sensitivity 
surrounding the Navy's proposal to use UFO satellites 8, 9, and 
10 as host platforms, and that a protracted period of study and 
review may preclude this option (insofar as it is dependent on 
use of satellite 8, which is currently scheduled to be launched 
no later than December 1997). The conferees are also aware that 
the Deputy Under Secretary of Defense for Space has tentatively 
endorsed the UFO approach as an interim bridge to an objective 
GBS system.
      Nonetheless, the conferees remain concerned that no 
detailed analysis of options and requirements has been 
presented to Congress. Not wanting to prematurely endorse any 
particular GBS option nor preclude any promising alternative, 
the conferees direct the Under Secretary of Defense for 
Acquisition and Technology to submit a report to the 
congressional defense committees that addresses the following 
issues regarding the development and deployment of interim and 
objective GBS capabilities: (1) the military requirement to be 
satisfied; (2) the cost, schedule, technical risk, and 
operational effectiveness of all hosted and free-flyer options; 
(3) the issues involved with the use of competitive procedures 
or other than competitive procedures; and (4) the role of GBS 
capabilities in the DOD's future military satellite 
communications architecture and the Department's strategy for 
acquiring and integrating such capabilities.
      The conferees encourage early involvement by the 
Commanders-in-Chief (CINCs) to ensure that GBS capabilities 
support a broad range of joint missions in the CINCs' areas of 
responsibility. The conferees also believe that the Under 
Secretary for Acquisition and Technology should conduct a broad 
survey of the capabilities and views of industry prior to 
selecting a particular technical approach or acquisition 
strategy.
      Once the congressional defense committees have received 
the report described above, the conferees would consider a 
reprogramming request to satisfy any outstanding fiscal year 
1996 funding requirements. The conferees' approval of such a 
request would depend largely on the content of the report 
submitted, the offsets identified, and the degree to which the 
chosen GBS acquisition strategy is funded in the Secretary of 
Defense's fiscal year 1997 budget request and Future Years 
Defense Program.

Materials and electronics technology

      The budget request included $226.1 million for material 
and electronics technology.
      The House bill would authorize an additional $3.0 million 
for chemical vapor deposition (CVD) and $2.0 million for 
chemical vapor composite (CVC) deposition. The bill would also 
provide an additional $5.0 million for higher transition 
temperature superconducting (HTS) materials, $7.5 million for 
seamless high off-chip connectivity (SHOCC) and $10.0 million 
for non-woven aramide fiber packaging.
      The Senate amendment would authorize an additional $8.0 
million for CVD and $8.0 million for HTS.
      The conferees agree to authorize $242.0 million in PE 
62712E, an increase of $16.0 million. This increase provides 
$4.0 million each for CVC deposition and CVD diamond material 
development and $8.0 million for HTS. The HTS authorization 
shall include HTS wire applications and precision band pass 
filters and high ``Q'' antennae for military communication 
systems that operate in signal rich environments.

Counterterror technical support

      The budget request included $12.0 million for the 
counterterror technical support program.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $2.0 
million to the budget request for the continued development of 
pulsed fast neutron analysis (PFNA) cargo inspection 
technology.
      The House recedes.

Joint Department of Defense/Department of Energy munitions technology 
        development

      The budget request included $16.8 million for the joint 
Department of Defense and Department of Energy munitions 
program.
      The House bill would authorize $31.8 million for the 
program, a $15.0 million increase to the budget request for 
environmentally compliant demilitarization and disposal of 
unserviceable, obsolete, or non-treaty compliant munitions, 
rocket motors, and explosives.
      The Senate amendment would authorize the budget request.
      The conferees agree to a $5.0 million increase to the 
budget request for joint DOD/DOE munitions technology 
development (PE 63225D). In addition, the conferees agree to 
provide $15.0 million for explosives demilitarization 
technology (PE 63104D), discussed elsewhere in the report.

Experimental evaluation of major innovative technologies (EEMIT)

      The budget request included $618.0 million for 
Experimental Evaluation of Major Innovative Technologies 
(EEMIT).
      The House bill would authorize an additional $55.8 
million for several programs, to include: global grid 
communications ($5.0 million); safety and survivability ($2.0 
million); synthetic theater of war ($6.8 million); cruise 
missile defense ($35.0 million); and antisubmarine warfare 
(ASW) ($7.0 million).
      The Senate amendment would authorize an increase of $18.0 
million for several programs, to include: cruise missile 
defense ($10.0 million); thermophotovoltaics ($5.0 million); 
and funding for a large millimeter wave telescope ($3.0 
million). The Senate would also authorize a general reduction 
of $10.0 million to the EEMIT program element.
      The conferees agree to authorize $613.7 million in PE 
63226E, the highest level of appropriation, and specifically 
identify the following programs for authorization: cruise 
missile defense ($10.0 million); two megawatt direct fuel cell 
powerplant ($7.0 million); large millimeter wave telescope 
($3.0 million); safety and survivability ($2.0 million); ASW 
($5.0 million); deep ocean relocation ($2.5 million); and Crown 
Royal ($5.0 million).

Safety and survivability

      The House bill would authorize an additional $2.0 million 
in PE 65864N and an additional $2.0 million in PE 63226E for 
safety and survivability enhancements.
      The Senate amendment contained no additional 
authorization for these purposes.
      The conferees direct that of the funds authorized in PE 
64864N and PE 63226E, $2.0 million each shall be used for 
safety and survivability enhancements, as specified in the 
House report (H. Rept. 104-131).
Shallow water anti-submarine warfare
      The budget request included $16.5 million in PE 63226E 
for development and demonstration of advanced technologies for 
shallow water anti-submarine warfare operations.
      The House bill would authorize an additional $7.0 million 
to begin an assessment by ARPA and the Navy of the use of newly 
developed and maturing multi-static acoustic, electromagnetic 
and electro-optic sensor technologies integrated into existing 
aircraft, ship, and submarine platforms in a combined system of 
sensors to provide the joint amphibious operational commander 
an integrated picture of the littoral maritime environment.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment. The conferees agree 
to authorize an additional $5.0 million to the budget request 
to continue the development and demonstration of advanced 
technologies for shallow water anti-submarine warfare.
Synthetic theater of war
      The budget request included $79.1 million in PE 63226E 
for the Advanced Distributed Simulation program.
      The House bill would authorize an additional $6.8 million 
to maintain the program and schedule for the 1997 Synthetic 
Theater of War (STOW-97) advanced concept technology 
demonstration.
      The Senate amendment would authorize the budget request.
      The House recedes. The conferees are impressed by the 
results of the STOW-95 demonstration and the potential to meet 
the warfighting commanders' requirements for development and 
integration of improved simulation technologies for training 
and mission rehearsal. The conferees recognize that the STOW 
program could prove to be the foundation for the future Joint 
Simulations System for all the military services. The conferees 
strongly encourage the Secretary of Defense to maintain funding 
levels necessary to sustain the objectives and schedule of the 
STOW-97 advanced concept technology demonstration.
Tactical technology
      The budget request included $113.2 million for this 
tactical technology program.
      The House bill would authorize an additional $7.0 million 
for the tactical landing system project and an additional $7.0 
million for a high resolution, mobile multiple object tracking 
system project.
      The Senate amendment would authorize an additional $6.5 
million for the tactical landing system project.
      The conferees agree to authorize an additional $6.5 
million in PE 63226E for completion of the tactical landing 
system project and an additional $7.0 million in PE 63226E for 
a high resolution, mobile multiple object tracking system.
Advanced submarine technology development
      The budget request included $7.5 million in PE 63569E for 
the Advanced Research Projects Agency's (ARPA's) advanced 
submarine technology program.
      The House bill would authorize an additional $23.0 
million in PE 63569E. This increase would permit ARPA to pursue 
innovative technologies that could improve the capability of 
Navy submarines to operate in littoral regions, develop and 
demonstrate new concepts for structural acoustics and 
management of submarine signatures, and enhance the multi-
mission capabilities of Navy submarines.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $30.5 million in PE 
63569E, an increase of $23.0 million. Of the $23.0 million, 
$7.0 million shall only be available to continue transfer of 
technology to the Navy for active control of machinery 
platforms demonstrated in ARPA's Project M.

Rapid acquisition of manufactured parts

      The House bill would authorize an increase of $12.0 
million above the requested amount of $21.5 million in PE 
63712N for the continuation of the rapid acquisition of 
manufactured parts (RAMP) program.
      The Senate amendment would authorize an increase of $12.0 
million above the requested amount of $6.5 million in PE 63736D 
for the RAMP program.
      The House recedes.

Advanced lithography program

      The budget request included $39.0 million in PE 63739E 
for advanced lithography programs.
      The House bill would authorize an additional $25.0 
million in PE 63739E for advanced lithography programs.
      The Senate amendment would authorize the requested 
amount.
      The conferees agree to authorize $60.0 million, an 
additional $21.0 million, in PE 63739E, for advanced 
lithography programs.

Advanced electronics technologies

      The budget request included $420.0 million for advanced 
electronics technologies in PE 63739E.
      The House bill would authorize an additional $25.0 
million for advanced lithography and a reduction of $23.6 
million in project MT-07.
      The Senate amendment reduced the budget request by a 
cumulative $50.0 million for three separate programs.
      The conferees agree to a funding level of $409.0 million, 
which includes an additional $21.0 million for advanced 
lithography, $7.5 million for seamless high off-chip 
connectivity, and full funding for project MT-08. The conferees 
consider the work of the Center for Advanced Technologies to be 
worthy of continuation. The conferees note that the Department 
of Defense may, at its discretion, use funds authorized in PE 
61101E to continue the program at the requested level.

Joint robotics program

      The budget request included $17.4 million for the joint 
robotics program.
      The House bill would authorize an additional $10.0 
million for the mobile detection assessment response system 
(MDARS).
      The Senate amendment contained no similar provision.
      The conferees agree to an increased funding authorization 
of $5.0 million for MDARS in PE 63709D.

Advanced sensor applications program

      The budget request included $17.4 million in PE 63714D 
for the advanced sensor applications program.
      The House bill would authorize an increase of $10.0 
million to the budget request, including $5.0 million for 
continued development of a research prototype laser radar anti-
submarine warfare (LIDAR ASW) system concept, which is being 
investigated by the Office of the Secretary of Defense advanced 
sensor applications program (OSD ASAP), and $5.0 million for 
continued development of the Navy ATD-111 LIDAR ASW system. The 
House bill would encourage comparative testing of the two 
systems as a basis for establishing the requirement for a 
follow-on system.
      The Senate amendment would authorize an additional $10.0 
million for upgrade test and evaluation of the ATD-111 system, 
and would direct the Secretary of the Navy to prepare a plan 
for acquisition and deployment of the ATD-111.
      The conferees have agreed to provide $10.0 million in PE 
63528N for the Navy ATD-111 non-acoustic anti-submarine warfare 
program, as discussed elsewhere in this statement of managers. 
The conferees strongly support the comparative evaluation of 
the LIDAR ASW alternatives, and direct the Department of the 
Navy and the OSD ASAP to develop jointly a plan for testing 
these two alternative approaches to LIDAR ASW. The conferees 
expect that funds to complete the evaluation will be included 
in the fiscal year 1997 defense budget request.

Industrial preparedness (manufacturing technology) programs

      The budget request included $17.8 million for the Army, 
$41.2 million for the Navy, $53.3 million for the Air Force, 
and $7.0 million for the Defense Agencies to fund the 
manufacturing technology (MANTECH) programs within these 
agencies.
      The House bill would include an additional $10.0 million 
for the Army, an additional $10.0 million for the Navy, and 
approve the requested amount for the Air Force and the Defense. 
The House bill would also transfer funding from advanced 
development (6.3) program elements to industrial preparedness 
(7.8) program elements.
      The Senate amendment would authorize all the 
manufacturing technology programs at the requested amounts and 
would transfer the funding from the program elements in the 
budget request.
      The conferees agree to authorize funding for 
manufacturing technology programs, as follows:

                                                                Millions
Army (PE 78045A).................................................. $26.8
Navy (PE 78011N)..................................................  88.0
Air Force (PE 78011F).............................................  60.9
Def. Ag. (PE 78011S)..............................................   7.0

Integrated bridge system for MK V special operations craft

      The budget request included $13.3 million in PE 1160402BB 
for special operations advanced technology development.
      The House bill would authorize an additional $1.5 million 
for development of a prototype maritime integrated bridge 
system for the MK V special operations craft to demonstrate the 
potential for advanced display and control technologies to 
enhance mission performance.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Quiet Knight advanced concept and technology demonstration

      The budget request included $101.6 million in PE 
1160404BB for Special Operations tactical systems development, 
to include $3.5 million allocated by the U.S. Special 
Operations Command to continue the Quiet Knight advanced 
avionics technology demonstration.
      The House bill would authorize the budget request. The 
House report (H. Rept. 104-131) expressed strong support for a 
Phase I (component development and demonstration) of an 
advanced concept technology demonstration of Quiet Knight for 
both fixed and rotary wing aircraft, and the continuation to a 
Phase II full scale demonstration and flight test of the 
integrated Quiet Knight capability. The House report also 
expressed the expectation that funding requirements for 
completion of the Phase II demonstration would be included in 
the fiscal year 1997 budget request.
      The Senate amendment would authorize the budget request.
      The conferees support completion of the Quiet Knight 
technology demonstration, and encourage the Department of 
Defense to validate the requirements for advanced low 
probability of intercept/low probability of detection avionics 
for special operations aircraft.

Advanced SEAL delivery system

      The budget request included $24.6 million in PE 1160404BB 
to complete fabrication and integration of the first Advanced 
SEAL Delivery System (ASDS) and begin system level testing.
      The House bill would authorize an additional $4.0 million 
to complete evaluation of the ASDS employed on the SSN-688 
class submarine.
      The Senate amendment contained a similar provision.
      The conferees are pleased with the joint efforts of the 
U.S. Special Operations Command and the Navy in the development 
of ASDS. The conferees agree to increase the budget request by 
$4.0 million to complete evaluation of the ASDS.

Rigid hull inflatable boat

      The budget request contained $11.7 million for 
procurement of special warfare equipment, including $10.1 
million for procurement of the Naval Special Warfare 10 meter 
Rigid Hull Inflatable Boat (RHIB).
      The House bill would authorize the budget request.
      The Senate amendment noted that the U.S. Special 
Operations Command had reported that the 10 meter RHIB, on 
which initial developmental effort had been focused, performed 
unsatisfactorily during operational testing. As a result, a new 
strategy was adopted for development of a RHIB to meet Special 
Operations Forces' requirements. The Senate amendment would 
authorize an increase of $4.3 million in PE 1160404BB to 
support this developmental effort and would direct a 
corresponding reduction in the procurement account for special 
warfare equipment to offset the increase.
      The House recedes. The conferees understand that the $4.3 
million increase in PE 1160404BB for this purpose will support 
the competitive procurement of three to four prototype RHIBs 
for developmental testing and early operational assessment. The 
remaining $5.8 million authorized for procurement of special 
warfare RHIBs will be used to procure approximately 30 interim 
24-foot RHIBs to alleviate deficiencies caused by the estimated 
three-year delay in initial operation capability for the new 
RHIBs.

Ballistic missile defense funding and programmatic guidance

      The budget request contained $2,912.9 million for the 
Ballistic Missile Defense Organization (BMDO), including 
$2,442.2 million for Research, Development, Test, and 
Evaluation (RDT&E), $453.7 million for Procurement, and $17.0 
million for Military Construction.
      The House bill would authorize an additional $628.0 
million for BMDO.
      The Senate amendment would authorize an additional $490.5 
million for BMDO.
      The conferees agree to authorize a total of $3,516.9 
million for BMDO, an increase of $603.9 million above the 
budget request. The conferees set forth specific funding 
allocations and programmatic guidance below.

                                                                 BMDO FUNDING ALLOCATION                                                                
                                                                [In thousands of dollars]                                                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           Conference   
                         Program                             Budget Request      House Change      Senate Change    Conference Change       Outcome     
--------------------------------------------------------------------------------------------------------------------------------------------------------
Support Tech.............................................             93,308  .................  .................  .................             93,308
Support Tech.............................................             79,387  .................            +70,000            +50,000            129,387
THAAD Dem/Val............................................            576,327  .................  .................  .................            576,327
Hawk.....................................................             23,188  .................  .................  .................             23,188
BM/C3 Dem/Val............................................             24,231  .................  .................  .................             24,231
Navy LT Dem/Val..........................................  .................  .................  .................           +185,000            185,000
Navy UT Dem/Val..........................................             30,442           +170,000           +170,000           +170,000            200,442
Corps SAM................................................             30,442            -10,000             +4,558            -10,000             20,442
BPI......................................................             49,061            -20,000            -49,061            -49,061  .................
NMD......................................................            370,621           +450,000           +300,000           +450,000            820,621
Other TMD................................................            460,470            -37,000            +15,000            -22,000            438,470
THAAD EMD................................................  .................            +50,000  .................  .................  .................
BM/C3 EMD................................................             14,301  .................  .................  .................             14,301
PAC-3 EMD................................................            247,921  .................           +104,500           +104,500            352,421
PAC-3 EMD/RR.............................................             19,485  .................  .................  .................             19,485
Navy LT EMD..............................................            237,473            +45,000            +45,000           -140,000             97,473
Management...............................................            185,542            -20,000            -30,000            -30,000            155,542
Patriot Proc.............................................            399,463  .................           -104,500           -104,500            294,963
Navy LT Proc.............................................             16,897  .................  .................  .................             16,897
Hawk Proc................................................              5,106  .................  .................  .................              5,106
BM/C3 Proc...............................................             32,242  .................  .................  .................             32,242
BMDO Milcon..............................................             17,009  .................  .................  .................             17,009
--------------------------------------------------------------------------------------------------------------------------------------------------------

      Theater High Altitude Area Defense (THAAD)--The conferees 
agree to authorize the budget request of $576.3 million in PE 
63861C for THAAD Demonstration/Validation (Dem/Val).
      The conferees endorse the language in the House report 
(H. Rept. 104-131) and the Senate report (S. Rept. 104-112) 
regarding the THAAD User Operational Evaluation System (UOES) 
option, and the need to ensure a smooth and timely transition 
from the Dem/Val phase to the Engineering and Manufacturing 
Development (EMD) phase. The conferees direct the Secretary of 
Defense to restructure the THAAD program so as to achieve a 
First Unit Equipped (FUE) by fiscal year 2000. The conferees 
believe that this objective can be facilitated by making only 
minor modifications to the UOES design and beginning Low-Rate 
Initial Production as soon as the EMD missiles have been 
adequately tested. Subsequent performance improvements to the 
initial system configuration should be incorporated through 
block upgrades, as appropriate and necessary. The conferees 
note that this approach would reduce overall THAAD development 
costs while significantly accelerating fielding of an 
operational system. Therefore, the conferees urge the Secretary 
of Defense to release the THAAD engineering and manufacturing 
development (EMD) request for proposal. Finally, the conferees 
direct the Secretary of Defense to promptly initiate 
development of all battle management software for the THADD 
system, including that necessary to receive cuing information 
from external sensors.
      Navy Upper Tier--The budget request included $30.4 
million in PE 63868C for the Navy Upper Tier program.
      The conferees agree to authorize an increase of $170.0 
million for a total Navy Upper Tier authorization of $200.4 
million. The conferees direct the Secretary of Defense to 
include the Navy Upper Tier program in the core theater missile 
defense (TMD) program and to structure the Navy Upper Tier 
development and acquisition program so as to achieve an initial 
operational capability (IOC) not later than fiscal year 2001, 
with a UOES capability not later than fiscal year 1999. The 
conferees look forward to receiving the results of the various 
studies that are assessing Navy Upper Tier technical issues and 
deployment options. The conferees agree to require the Director 
of BMDO to provide a status report to the congressional defense 
committees, not later than March 1, 1996, that summarizes the 
findings and recommendations (as available) of these analyses. 
The Director of BMDO should include in such report an 
assessment of options for reducing risk and enhancing 
competition in the Navy Upper Tier program, including the 
option of establishing a competitive development and flight 
test program between the Lightweight Exoatomospheric Projectile 
(LEAP) and THAAD kill vehicles.
      The conferees believe that competition within the Navy 
Upper Tier program is desirable, but do not support the notion 
of competition between the Navy Upper Tier and THAAD programs. 
The conferees are convinced that the United States can and 
should develop and deploy both sea-based and land-based upper 
tier programs. Although there may be an opportunity to reduce 
the number of TMD programs being developed by the Department of 
Defense, the conferees strongly oppose the notion of a 
competition and down-select between the THAAD and Navy Upper 
Tier systems. The conferees view these as critical and 
complementary systems.
      Patriot--The budget request included $247.9 in PE 64865C 
for PAC-3 EMD, $19.5 million in PE 64866C for PAC-3 risk 
reduction, and $399.5 million for Patriot procurement.
      The conferees agree to authorize the overall amount 
requested for the Patriot program and related activities. 
Within this overall authorization, the conferees agree to 
transfer $104.5 million from Patriot procurement to PAC-3 EMD, 
a total authorization of $352.4 million in PE 64865C.
      Navy Lower Tier--The budget request included $237.5 
million in PE 64867C for Navy Lower Tier EMD and $16.9 million 
for Navy Lower Tier procurement.
      The conferees agree to authorize an increase of $45.0 
million for Navy Lower Tier Dem/Val and to transfer $140.0 
million from Navy Lower Tier EMD to Navy Lower Tier Dem/Val, a 
total of $185.0 million in PE 63867C.
      Corps SAM--The budget request included $30.4 million in 
PE 63869C for the Corps Surface to Air Missile (Corps SAM) 
system.
      The conferees agree to authorize $20.4 million for Corps 
SAM, a reduction of $10.0 million. Although the conferees 
support the Corps SAM requirement, they remain concerned by 
several aspects of the current Corps SAM program, now known as 
the medium extended air defense system (MEADS). The conferees 
support an effort to explore alternative means to satisfy the 
Corps SAM requirement. Given the investments that have already 
been made in developing systems such as PAC-3 and THAAD, 
reintegration of existing systems and technologies may offer an 
achievable, cost-effective, and expeditious alternative. The 
conferees direct the Secretary of Defense to submit a report to 
the congressional defense committees on the options associated 
with the use of existing systems, technologies, and program 
management mechanisms to satisfy the Corps SAM requirement, 
including an assessment of cost and schedule implications. The 
conferees direct that, of the funds authorized in fiscal year 
1996 for the Corps SAM program, not more than $15.0 million may 
be obligated until such report has been submitted to the 
congressional defense committees.
      Boost-Phase Intercept--The budget request included $49.1 
million in PE 63870C for the kinetic energy Boost-Phase 
Intercept (BPI) program.
      The House bill would authorize $29.1 million for the 
kinetic BPI program.
      The Senate amendment would authorize no funds for the 
kinetic BPI program in PE 63870C. However, the Senate amendment 
would authorize $15.0 million in the Other TMD (OTMD) program 
element (PE 63872C) to initiate a joint United States-Israel 
BPI program based on unmanned aerial vehicles (UAVs).
      The conferees agree to authorize no funds for the kinetic 
BPI program due to continuing skepticism about the operational 
and technical effectiveness of a BPI system based on a manned 
tactical aircraft. However, the conferees agree to authorize 
the use of up to $15.0 million, from within funds made 
available in the OTMD program element, for a UAV-based BPI 
program. The conferees support a joint U.S.-Israel UAV-BPI 
program focused on risk mitigation, provided that an equitable 
cost-sharing arrangement can be reached and that the program 
will be structured to satisfy the BPI requirements of both 
sides. The conferees also support continuation of the 
Atmospheric Interceptor Technology (AIT) program, which is 
being developed as an advanced multi-purpose kill vehicle. The 
conferees authorize the use of up to $30.0 million, from within 
funds made available in the OTMD program element, to continue 
the AIT program. The conferees are disappointed that the 
Department has not completed its review of BPI programs and 
options in time to inform the conferees' deliberations and 
decisions. Therefore, the conferees agree to require the 
Director of BMDO to submit a report to the congressional 
defense committees, not later than February 1, 1996, that 
summarizes the findings and recommendations of the Department's 
BPI study. This report should also address promising options 
and technical approaches associated with a UAV BPI program.
      Other TMD--The budget request contained $460.5 million in 
PE 63872C for OTMD programs, projects, and activities.
      The House bill would authorize $423.5 million for OTMD.
      The Senate amendment would authorize $475.5 million, 
including the $15.0 million for the UAV-BPI program cited 
above.
      The conferees agree to authorize $438.5 million for OTMD. 
Of this amount, the conferees authorize the use of up to $15.0 
million to explore a UAV-BPI program and up to $30.0 million to 
continue the AIT advanced kill vehicle program.
      National Missile Defense--The budget request contained 
$370.6 million in PE 63871C for National Missile Defense (NMD).
      The House bill would authorize $820.6 million for NMD.
      The Senate amendment would authorize $670.6 million for 
NMD.
      The conferees agree to authorize $820.6 million for NMD.
      Support Technologies--The budget request contained $93.3 
million in PE 62173C and $79.4 million in PE 63173C for 
ballistic missile defense (BMD) support technologies.
      The House bill would authorize the budget request for BMD 
Support Technologies.
      The Senate amendment would authorize an increase of $70.0 
million in PE 63173C for the Space-Based Laser (SBL) program.
      The conferees agree to authorize the budget request in PE 
62173C and to authorize an increase in the SBL program of $50.0 
million, for a total authorization of $129.4 million in PE 
63173C. The conferees believe that it is critical for the 
United States to continue developing the technology for space-
based defenses, to preserve the option of deploying highly 
effective global defenses in the future. The conferees note 
that a space-based laser would likely be the most effective 
system for intercepting ballistic missiles of virtually all 
ranges in the boost phase. Therefore, the conferees direct the 
Secretary of Defense to take the following actions: (1) 
continue integration and testing of the laser, mirror, and beam 
control components of the Alpha-Lamp Integration program; (2) 
accelerate design activities on the StarLITE space 
demonstration configuration; (3) produce the concept of 
operations and design requirements for a follow-on operational 
space-based laser deployment; and (4) revitalize the technology 
development efforts most likely to yield significant cost and 
weight savings for a future SBL spacecraft. The conferees 
direct the Secretary of Defense to ensure that sufficient funds 
are provided in the outyears for continuation of a robust SBL 
effort, and submit to the congressional defense committees, by 
March 1, 1996, a report that outlines a program and funding 
profile that could lead to an on-orbit test of a demonstration 
system by the end of 1999 if approved.
      The conferees note that the Director, BMDO, has testified 
to Congress that BMDO's follow-on technology programs are 
severely under-funded and that the Director is seeking to 
increase such funding to approximately 12 percent of the 
overall BMDO budget. The conferees support the efforts of the 
Director of BMDO to increase funding for advanced technology 
development. However, the conferees note that such increases 
will require an overall increase in the funds allocated to 
BMDO. The conferees support such an increase in order to 
reinvigorate and advanced technology programs and to help 
sustain the development and acquisition activities endorsed by 
the conferees.
      BMDO is required to set aside 2.15 percent of extramural 
research, development, test, and evaluation authorized and 
appropriated (RDT&E) funds for Small Business Innovative 
Research (SBIR) efforts. Since the conferees recommend a level 
of funding for BMD programs exceeding the budget request, and 
programmed funding for SBIR represents a level below the 
mandated percentage, the Director of BMDO is authorized to 
transfer such funds as necessary from BMD program elements into 
PE 62173C to achieve the required percentage for SBIR.
      BMDO Management--The budget request contained $185.5 
million in PE 65218C for BMD Management.
      The House bill would authorize $165.5 million for BMDO 
Management.
      The Senate amendment would authorize $155.5 million for 
BMDO Management.
      The conferees agree to authorize $155.5 million for BMDO 
Management. The conferees recognize that BMDO must maintain the 
integrity of its oversight of the overall BMD program. The 
conferees are concerned, however, that BMD management 
infrastructure may be unnecessarily duplicated in one or more 
of the services. Therefore, the conferees direct that BMDO 
identify any such duplication and take actions to eliminate it. 
The conferees request that the Director of BMDO consult with 
the Senate Committee on Armed Services and the House Committee 
on National Security regarding the Director's findings and 
proposed actions. The conferees further direct that BMDO show 
no increase in fiscal year 1997, after adjustments for 
inflation and any change in mission, over the level 
appropriated for management in fiscal year 1996.

Cruise missile defense funding

      The House bill would authorize an increase of $76.0 
million above the budget request for cruise missile defense 
programs, projects, and activities.
      The Senate amendment would authorize an increase of 
$145.0 million above the budget request for a similar group of 
programs, projects, and activities.
      The conferees agree to authorize an increase of $85.0 
million above the budget request for cruise missile defense 
programs, projects, and activities. The conferees provide 
additional guidance in the classified annex.

                       ITEMS OF SPECIAL INTEREST

Anti-submarine warfare program

      The conferees share the concerns raised in the House 
report (H. Rept. 104-131), and in the classified annex to that 
report, regarding the apparent decline in priority of the 
Navy's anti-submarine warfare (ASW) program. The conferees 
agree that there is a need for an assessment of the nation's 
overall ASW program. The conferees' concerns are addressed 
further in the classified annex to this Statement of Managers.
      The conferees direct the Secretary of Defense to assess 
the current and projected United States ASW capability in light 
of the continuing development of quieter nuclear submarines, 
the proliferation of very capable diesel submarines, the sale 
of sophisticated, submarine launched weapons, and the declining 
trend in budget resources associated with ASW programs. This 
assessment should identify both short-term and long-term 
improvements that are needed to cope with the evolving 
submarine threat in both littoral and open ocean areas. The 
results of this assessment and the plan for the United States 
ASW program shall be reported to the congressional defense 
committees by July 1, 1996.
Geosat follow-on program
      The House report (H. Rept. 104-131) addressed the issue 
of converging the Navy's Geosat Follow-On (GFO) altimetry 
program with the National Aeronautics and Space 
Administration's TOPEX/Poseidon Follow-On (TPFO) altimetry 
program.
      The Senate report (S. Rept. 104-112) did not address the 
issue.
      The conferees share the concerns raised in the House 
report. The conferees are dismayed that the report to Congress 
on altimetry convergence was submitted more than three months 
later than an already extended deadline. The conferees are also 
troubled that the report recommends proceeding with the TPFO 
option, despite the fact that this approach would cost more, 
not involve U.S. construction and control of the satellite, and 
not provide the same level of data security. The TPFO option 
would require the Navy to spend an additional $5.2 million, for 
which it has not budgeted, to add global positioning system 
(GPS) and direct downlink capabilities critical for satisfying 
Navy requirements. The conferees direct that no funds 
authorized for the Department of Defense be obligated or 
expended during fiscal year 1996 for activities associated with 
adding GPS and direct downlink capabilities to TPFO.
High performance computing modernization program
      In addition to supporting efforts to reduce the RDT&E 
infrastructure, the conferees continue to support investment in 
high performance computing (HPC) resources for use in the 
developmental test and evaluation (DT&E) community and 
recognize the need for a transition to HPC-based resources, 
integrated DT&E, and operational test and evaluation (OT&E). 
The conferees direct the Secretary of Defense to prepare a 
long-term plan for modernization of HPC resources at test and 
evaluation centers, and for the integration of HPC-based 
models, advanced data bases, and other decision support 
resources into the RDT&E infrastructure. In preparing the plan, 
the Secretary should rely on the collaborative input from the 
Director of Defense Research and Engineering, the Director of 
Test Systems Engineering and Evaluation, and the Director of 
Operational Test and Evaluation. The plan shall address 
budgeting options that provide for a realistic program and 
propose financing methods that can insure that needed 
infrastructure investments are made in a timely manner. The 
conferees direct the Secretary to submit the proposed plan with 
the Department of Defense budget recommendations to the 
congressional defense committees, no later than March 31, 1996.
Low-low frequency acoustics
      The conferees share the understanding expressed in the 
House report (H. Rept. 104-131) that of the funds authorized 
and appropriated in fiscal year 1994 and 1995 for the low-low 
frequency acoustics (LLFA) technology program approximately 
$30.0 million remain available and are sufficient to continue 
the program through fiscal year 1996. The conferees further 
understand that the fiscal year 1996 program will focus on 
operational concepts for the LLFA, technical performance, 
command and control, environmental considerations, and the 
transition of the LLFA technology to existing fleet platforms. 
The conferees agree with the House that based on the emerging 
results of the fiscal year 1996 program consideration of 
additional funding for LLFA technology program, should be 
deferred until the fiscal year 1997 budget request.
Machine tool controller
      The conferees are aware of a recent cooperative research 
and development agreement, entered into by the Department of 
Energy, two national laboratories, and a private sector 
consortium, to develop and test an open-architecture machine 
tool controller. The conferees encourage the Secretary of 
Defense to develop a plan to ensure a thorough evaluation of 
the technology and its application to the specific needs of 
defense contractors.
National security space policy, management, and oversight
      The House report (H. Rept. 104-131) and the Senate report 
(S. Rept. 104-112) each contained reporting requirements 
concerning policy, management, and oversight of U.S. national 
security space programs. In lieu of the reporting requirements 
contained in those reports, the conferees direct the Secretary 
of Defense to submit a report to the Congress, not later than 
April 15, 1996, that addresses in detail the following matters:
            (1) The results of the Administration's reviews of 
        U.S. national and military space policies--The 
        conferees direct that copies of any updated policy 
        directives (including unclassified and classified 
        forms) that result from the reviews be included as 
        attachments to the Secretary's report. The conferees 
        view the Administration's decision to initiate such 
        reviews as appropriate in light of changes in the 
        international security environment, and expect the 
        reviews will be completed in time to permit 
        Departmental witnesses to discuss the results in 
        hearings on the President's fiscal year 1997 budget 
        request.
            (2) The activities of the Joint Department of 
        Defense Intelligence Community Space Management Board 
        (JSMB)--The report shall include a copy of the charter 
        for the Board and a description of its planned 
        functions, operations, and staffing. The report shall 
        address the responsibilities for the development of an 
        integrated national security space architecture and the 
        integrated acquisition of national security space 
        systems. In addition, the report shall describe the 
        Board's plans for reviewing military and intelligence 
        satellite communications architectures and systems. The 
        conferees endorse the establishment of the JSMB, noting 
        that improved integration of military and intelligence 
        satellite architectures and systems can result in 
        significant cost-savings and efficiencies in the 
        acquisition and operation of those systems.
            (3) The status of and plans for completing a 
        national security space master plan to guide 
        investments in military and intelligence space 
        architectures and systems for the coming decade--The 
        conferees note with concern that the Department failed 
        in a similar, but more narrowly focused, undertaking 
        when, in the Statement of Managers to accompany the 
        National Defense Authorization Act for Fiscal Year 1993 
        (H. Rept. 102-966), the conferees directed the 
        Department to develop ``a comprehensive acquisition 
        strategy for developing, fielding, and operating DOD 
        space programs.'' Nonetheless, the conferees applaud 
        the decision of the Deputy Under Secretary of Defense 
        for Space to begin drafting such a master plan, and 
        request that the report include an estimated completion 
        date for the plan.
            (4) The Department's plans for ensuring that, even 
        as oversight of national security space acquisition and 
        planning is centralized, each of the military services 
        is able to influence decisions regarding space 
        architectures and systems--The conferees direct that 
        the report include: (a) an assessment of progress to 
        date in centralizing DOD space management; (b) the 
        organizational structure that will be achieved upon 
        completion of the planned consolidation, and an 
        estimated completion date for such consolidation; (c) a 
        description of how the DOD plans to protect service-
        unique interests and other equities in the new 
        centralized organization; (d) the anticipated 
        reductions in personnel and infrastructure that will 
        result from such consolidation; and (e) the degree to 
        which effectiveness and efficiency will be enhanced by 
        the new structure and associated procedures.
      The conferees are aware that the Department has 
established a Space Architect Office as part of the space 
management reorganization. Given that this is a new function 
and organization, budget planning was not completed prior to 
submittal of the amended fiscal year 1996 budget request. 
Therefore, the conferees agree to authorize the use of up to 
$10.0 million in Air Force research, development, test, and 
evaluation funds to operate the Space Architect Office in 
fiscal year 1996.
Shortstop
      The conferees stress the need to move forward without 
delay on the Shortstop countermeasure system, and encourage the 
Secretary of the Army to maintain funding for the currently 
planned program leading to procurement.
Softwar operations
      The conferees direct the Air Force's Phillips Laboratory 
Combat Space Operations Program Office to examine the use of 
commercially developed Information Warfare Systems that use 
television enhanced situational awareness for ``softwar'' 
operations. The Secretary of the Air Force shall report to the 
congressional defense committees by January 1, 1996 on the 
results of the Phillips Laboratory examination and the 
possibility to fund a technology demonstration in ``softwar'' 
operations. The conferees direct the Secretary to pursue this 
technology if the examination results in a favorable 
recommendation.

                         LEGISLATIVE PROVISIONS

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

 Modifications to strategic environmental research and development 
        program (sec. 203)
      The House bill contained a provision (sec. 203) that 
would make certain modifications to chapter 172 of title 10, 
United States Code, which governs the Strategic Environmental 
Research and Development Program.
      Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would 
streamline and simplify program activities, facilitate program 
management, and promote cost effectiveness. The existing annual 
reporting requirement would continue until fiscal year 1997, at 
which point an abbreviated annual reporting requirement would 
become effective. The Senate amendment would ensure that the 
level of participation by the Secretary of Energy would not be 
subject to change. The conferees agree that there is a 
continuing need for Department of Energy participation in the 
program, and the retention of some reporting requirements.
Defense dual-use technology initiative (sec. 204)
      The House bill would deny the entire funding request of 
$500.0 million for the Defense Reinvestment Program (PE 
63570E).
      The Senate amendment would rename the program the Defense 
Dual-Use Technology Initiative and reduce the requested 
authorization for the program by $262.0 million.
      The conferees agree to change the name of the program and 
to authorize $195.0 million for the program. The conferees have 
included a provision that would limit the availability of the 
funds authorized in PE 63570E only for the purpose of 
continuation or completion of projects initiated before October 
1, 1995. The conferees have also included language that would 
require the Secretary of Defense, prior to obligation of funds, 
to provide the congressional defense committees with notice 
regarding the projects to be funded with $145.0 million of the 
amount authorized for the program. The conferees have also 
required that, for the remaining $50.0 million of the total 
amount authorized, the Secretary should certify, prior to 
obligation of funds, that the projects that would be carried 
out using such funds have been determined by the Joint 
Requirements Oversight Council to be of significant military 
priority.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Space launch modernization (sec. 211)
      The House bill contained a provision (sec. 211) that 
would authorize $100.0 million for a competitive reusable 
rocket technology program, and $7.5 million for evaluation of 
prototype hardware of low-cost expendable launch vehicles.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
$50.0 million for a competitive reusable rocket technology 
program, provided that the National Aeronautics and Space 
Administration allocates at least an equal amount for its 
reusable space launch program.
Tactical manned reconnaissance (sec. 212)
      The House bill contained a provision (sec. 213) that 
would prohibit the Air Force from conducting any research and 
development on tactical manned reconnaissance systems.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require a 
report explaining the Air Force's planned uses of funds for the 
tactical manned reconnaissance mission.
Joint advanced strike technology (JAST) program (sec. 213)
      The budget request included three requests for research 
and development funding for the joint advanced strike 
technology (JAST) program: $149.3 million for the Navy, $151.2 
million for the Air Force, and $30.7 million for the Advanced 
Research Projects Agency.
      The House bill contained a provision (sec. 216) that 
would reduce the request for JAST by $51.0 million, evenly 
divided between the Navy and the Air Force, and limit to 75 
percent the obligation of fiscal year 1996 appropriations until 
the Secretary of Defense provides a report to the congressional 
defense committees. The provision would require that the 
Secretary's report specify the numbers and capabilities of 
JAST-derivative aircraft and related weapons systems necessary 
to support two major regional contingencies.
      The Senate amendment would approve the JAST request. The 
Senate amendment also contained a provision (sec. 211) that 
would require the Navy to evaluate a variant of the F-117 
stealth fighter to fulfill Navy requirements within the JAST 
program. The Senate amendment would add $175.0 million to the 
Navy program for this propose, with $25.0 million to provide 
initial engineering analysis and specific risk reduction 
efforts, and $150.0 million to develop a flying prototype. 
Authorization of a flying prototype would be contingent on 
approval by the Secretary of the Navy's approval of results of 
initial analytical efforts.
      The Senate report (S. Rept. 104-112) questioned whether 
the program could fulfill the needs of the three services, and 
directed the Department to include two separate approaches in 
the JAST program to reduce program risk. The Senate amendment 
directed the Secretary of the Navy to:
            (1) ensure that the JAST program leads to 
        competitive demonstration involving tests of full 
        scale, full thrust aircraft by competitors to provide 
        test data for evaluation by the services; and
            (2) evaluate at least two propulsion concepts from 
        competing engine companies as part of those 
        demonstrations.
      Subsequent to passage of the Senate amendment and the 
House bill, the Department redefined the JAST program. Although 
additional resources will be necessary, from fiscal year 1997 
onward, to execute this new program, these changes have led to 
fiscal year 1996 deferral of $131.0 million.
      The conferees share the concerns expressed in the Senate 
report (S. Rept. 104-112) regarding the lack of engine 
competition and the size of flying prototypes. The conferees 
direct the Under Secretary of Defense (Acquisition & 
Technology) (USD (A&T)) to ensure that: (1) the Department's 
JAST program plan provides for adequate engine competition in 
the program; and (2) the scale of the proposed demonstrator 
aircraft is consistent with both adequately demonstrating JAST 
concepts and lowering the risk of entering engineering and 
manufacturing development (EMD). The conferees direct the 
Secretary of Defense to include in the report required by 
section 213(d) the Department's plan for competitive engine 
programs and demonstrator aircraft.
      The conferees recommend authorization of funds reflecting 
these changes, and agree to a provision (sec. 213) that would:
            (1) require that the Secretary of Defense provide a 
        report to the congressional defense committees 
        specifying the:
                    (a) the numbers and capabilities of JAST-
                derivative aircraft and related weapons systems 
                required to support two major regional 
                contingencies; and
                    (b) the department's plan for competitive 
                engine programs and demonstrator aircraft;
            (2) limit obligations for the JAST program to no 
        more than 75 per cent of fiscal year 1996 
        appropriations, until the Secretary of Defense provides 
        this report;
            (3) authorize up to $25.0 million from Navy 
        Research, Development, Test and Evaluation to conduct a 
        six month program definition phase for the A/F-117X to 
        determine whether such an aircraft could affordably 
        meet the Navy's next generation aircraft strike 
        requirements;
                    (a) if the USD (A&T) determines that a six 
                month definition phase is warranted, he shall 
                provide a report on the results of the concept 
                definition phase to the congressional defense 
                committees, not later than May 1, 1996;
                    (b) if the USD (A&T) determines otherwise 
                and certifies that an A/F-117X aircraft is not 
                needed to meet the Navy requirements and is not 
                a cost effective approach to meeting Navy 
                needs, the provision would allow the Department 
                to use the $25.0 million for other JAST 
                activities.
            (4) authorize $7.0 million for competitive engine 
        concepts.
Continous wave, superconducting radio frequency, free electron laser 
        (sec. 214)
      The House bill contained a provision (sec. 217) that 
would authorize $9.0 million in PE 62111N for the establishment 
of a continuous wave, superconducting radio frequency, free 
electron laser program within the Office of the Secretary of 
the Navy.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Navy mine countermeasure program (sec. 215)
      The Senate amendment contained a provision (sec. 212) 
that would transfer primary responsibility for developing and 
testing naval mine countermeasures from the Director, Defense 
Research and Engineering to the Under Secretary of Defense for 
Acquisition and Technology. It would provide for the exercise 
of this responsibility during fiscal years 1997 through 1999.
      The House bill contained no similar provision.
      The House recedes with an amendment that would establish 
fiscal years 1996 through 1999 as the period for exercise of 
the responsibility.
      The conferees note that section 216(b) of the National 
Defense Authorization Act for Fiscal Years 1992 and 1993 
(Public Law 102-190) provides that the Secretary of Defense may 
waive this assignment of responsibility if he annually 
certifies the adequacy of:
            (1) the mine countermeasures master plan prepared 
        by the Department of the Navy; and
            (2) the budget resources provided for 
        implementation of the plan.

Space-based infrared system (sec. 216)

      The Senate amendment contained a provision (sec. 214) 
that would accelerate development and deployment of the Space 
and Missile Tracking System (SMTS), formerly known as Brilliant 
Eyes, and that would require the Secretary of the Air Force to 
obtain the concurrence of the Director of the Ballistic Missile 
Defense Organization (BMDO) before implementing any decision 
that would impact the SMTS program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to establish a program baseline for 
the overall Space-Based Infrared System (SBIRS) program. The 
baseline would include the following:
            (1) overall program structure, including: (A) 
        program cost and an estimate of the funds required in 
        each fiscal year in which development and acquisition 
        activities are planned, (B) a comprehensive schedule 
        with program milestones and exit criteria, and (C) 
        optimized performance parameters for each segment of 
        the integrated system;
            (2) a development schedule for SMTS structured to 
        achieve the first launch of a Block I satellite in 
        fiscal year 2002, and initial operational capability 
        (IOC) of the system in fiscal year 2003;
            (3) full integration of SMTS into the overall SBIRS 
        architecture; and
            (4) establishment of the performance parameters of 
        all space segment components so as to optimize the 
        performance of the integrated system while minimizing 
        unnecessary redundancy and cost.
      The provision adopted by the conferees would require the 
Secretary of Defense to provide a report to the congressional 
defense committees on the SBIRS program baseline not later than 
60 days after the enactment of this Act.
      The conference provision would also establish the 
following program elements for the SBIRS program:
            (1) Space Segment High;
            (2) Space Segment Low (SMTS); and
            (3) Ground Segment.
      The conference provision requires the SBIRS baseline to 
include an SMTS IOC by fiscal year 2003 to support national and 
theater missile defenses. The conferees understand that the Air 
Force has defined this IOC as consisting of 12-18 satellites. 
The conferees urge the Air Force to make every effort to 
achieve an 18 satellite IOC by fiscal year 2003.
      In accelerating the SMTS program, it is not the 
conferees' intent to reduce the priority and importance of the 
SBIRS High components. The conferees endorse the schedule that 
the Air Force has established for the SBIRS High components. 
The SBIRS program should feature complementary and mutually 
supportive elements that do not include excessive technical and 
functional redundancy.
      Although SMTS can, over time, become a multi-functional 
sensor system capable of fulfilling missions such as technical 
intelligence and battlespace characterization, the conferees 
direct the Air Force to ensure that the SMTS Flight 
Demonstration System (FDS) and Block I system be designed 
primarily to satisfy the missile defense mission. Missions not 
related to theater and/or national ballistic missile defense 
should not be allowed to add significant cost, weight or delay 
to the SMTS FDS or Block I system. This scaled-down approach 
will ameliorate the technical challenges associated with an 
accelerated schedule while contributing to overall 
affordability.
      To support this schedule and missile defense focus, the 
conferees direct the Secretary of Defense to commence SMTS pre-
engineering and manufacturing development (EMD) activities in 
fiscal year 1996 and to ensure that the FDS and Block I 
satellites are equipped with long-wave infrared sensors. The 
conferees endorse the design characteristics specified in the 
Senate report (S. Rept. 104-112) regarding the objective SMTS 
system. The conferees have
authorized sufficient funds in fiscal year 1996 to commence 
these activities and to prepare the way for a fiscal year 1998 
FDS launch.
      Over time, as the Air Force gains operational experience 
with the High and Low Block I systems, it is likely that SMTS 
will be able to assume a much larger share of the SBIRS 
requirements burden. In the meantime, the conferees urge the 
Secretary of Defense to initiate technical and cost trade 
studies among the SBIRS space systems and include any 
preliminary findings and recommendations in the SBIRS baseline 
report.
      The budget request for SBIRS included $130.7 million for 
demonstration/validation (Dem/Val), $152.2 million for EMD, and 
$19.9 million for procurement. Of the funds requested for Dem/
Val, $114.8 million was for SMTS. The conferees agree on the 
following authorizations:
            (1) $265.7 million in PE 63441F for SBIRS Dem/Val, 
        of which $249.8 million is for SMTS; and
            (2) $162.2 million in PE 64441F for SBIRS EMD, of 
        which $9.4 million is for the Miniature Sensor 
        Technology Integration (MSTI) program.
      The conferees are aware of a recent proposal to increase 
competition and reduce risk in the SMTS program through a low-
cost flight experiment. The conferees direct the Air Force and 
BMDO to carefully assess the merits of this concept and to 
include their joint findings and recommendations in the SBIRS 
baseline report. If the Air Force Acquisition Executive and the 
Director of BMDO certify to the congressional defense 
committees that such a flight experiment is in the overall 
interest of the SMTS program (measured in terms of risk 
reduction and schedule acceleration), the conferees authorize 
the use of up to $40.0 million of the funds authorized for SMTS 
in fiscal year 1996 to begin a low-cost flight experiment.
      The conferees congratulate the Air Force and BMDO for 
reaching agreement on the acquisition management relationship 
for execution of the SMTS program. In light of the Memorandum 
of Agreement between the Air Force Acquisition Executive and 
the Director of BMDO, the Senate recedes on its language 
dealing with management oversight of the SMTS program. As with 
all aspects of the SMTS program, however, the conferees will 
continue to monitor management oversight with great interest. 
If the present management structure does not fulfill the 
expectations of the conferees, or lead to implementation of the 
guidance provided above, the conferees will reconsider 
transferring SMTS back to BMDO.

Defense Nuclear Agency programs (sec. 217)

      The budget request contained $219.0 million for research 
and development at the Defense Nuclear Agency.
      The Senate amendment contained a provision (sec. 216) 
that would authorize $242.0 million for fiscal year 1996 for 
research and development programs (PE 62715H), a $23.0 increase 
to the budget request. The increase would provide: $3.0 million 
for the establishment of the tunnel characterization/
neutralization program; $6.0 million for the establishment of a 
long-term radiation tolerant microelectronics program and 
require the Secretary to report to Congress on the program and 
future year funding; $4.0 million for the electro-thermal gun 
program; and transfer the Air Force thermionics program and any 
unobligated funds to the DNA and provide $10.0 to accelerate 
that program.
      The House report (H. Rept. 104-131) would provide a $4.0 
million increase to the budget request for the electro-thermal 
gun technology.
      The conferees agree to a provision that would authorize 
$241.7 million, including a reduction of $5.0 for environmental 
pollutant research. This represents a $27.7 million increase 
over the budget request. Of that amount, $3.0 million shall be 
used for a tunnel characterization/neutralization program, $4.0 
million shall be available for the electro-thermal gun 
technology program, $6.0 million shall be available for the 
establishment of a long-term radiation tolerant 
microelectronics program and development of long pulse, high 
power microwave technology, $10 million shall be available for 
the thermionics program; and $4.0 million shall be available 
for the counterterror explosives research program. 
Additionally, the Secretary is directed to provide a report to 
Congress, 120 days after enactment of this Act, on the conduct 
of the long-term radiation tolerant microelectronics program 
and future years funding for this program. The remainder of the 
increase should be used to supplement the tunnel 
characterization/neutralization program and the long-term 
radiation tolerant microelectronics program, as appropriate.

             TUNNEL CHARACTERIZATION/NEUTRALIZATION PROGRAM

      The conferees understand that the Department of Defense 
has allocated $10.0 million of funds requested in the budget 
for the counterproliferation support program for a tunnel 
characterization/neutralization program. Although the DNA 
tunnel characterization/neutralization target tests and program 
would be executed independently of the Department's 
counterproliferation efforts, the conferees expect close 
coordination between the two programs to ensure that common 
concerns are addressed. The conferees urge the DNA to utilize, 
to the maximum extent possible, the Nevada Test Site 
infrastructure for the tunnel target characterization/
neutralization tests and program.

                              thermionics

      The conferees directed the transfer of the thermionics 
conversion technology from the Air Force Weapons program (PE 
62601F), together with all unobligated funds authorized and 
appropriated in prior years, totalling up to $12.0 million, to 
the Defense Nuclear Agency program (PE 62715H).

Counterproliferation support program (sec. 218)

      The budget request contained $108.2 million for the 
defense counterproliferation support program.
      The Senate amendment contained a provision (sec. 217) 
that would authorize $144.5 million for the program, a $36.3 
million increase to the budget request. Of the funds authorized 
in this section, $6.3 million would be available to the Special 
Operations Command (SOCOM) for purposes of broadening SOCOM's 
counterproliferation activities and $30.0 million would be 
available for the continuation of the Army tactical 
antisatellite technologies (ASAT) program (PE 63392A) for a 
user operation evaluation system (UOES) contingency capability. 
The provision would authorize the Department of Defense to 
transfer up to $50.0 million from fiscal year 1996 defense 
research and development accounts for counterproliferation 
support activities.
      The House bill would authorize the budget request for the 
counterproliferation support program and include $11.0 million 
for the development of improved nuclear detection and forensics 
analysis by the Advanced Projects Research Agency (ARPA).
      The conferees agree to a provision that would authorize 
$138.2 million for the counterproliferation support program, of 
which $30.0 million shall be available for the continuation of 
the Army tactical antisatellite technologies program. Of the 
funds authorized in fiscal year 1996, the conferees recommend 
that $1.5 million be available for the exploration of the 
``deep digger'' concept for hard target characterization, and 
that $5.0 million be available for the high frequency active 
auroral research program (HAARP).
      The conferees acknowledge concerns raised in the Senate 
report (S. Rept. 104-112) regarding the need for the Department 
to continue the aggressive pursuit of discriminate detection 
and attack capabilities of deep underground structures. The 
Department should continue to develop the capability to detect 
and defend against biological agents through the use of 
technologies, available through universities and non-profit 
industries, that have been developed for biological detection, 
emergency preparedness and response. The Department should also 
continue to develop a capability to counter technological gains 
by proliferant countries that could gain access to a broad mix 
of commercial-off-the-shelf space technologies which could 
provide these countries with significant space capabilities or 
access to space-derived data and could negatively impact a 
spectrum of multi-service and joint warfighting capabilities.

                   tactical antisatellite technology

      The conferees direct the Secretary of Defense to include 
sufficient resources in fiscal year 1997, and throughout the 
future year defense plan (FYDP), for the following: a user 
operation evaluation system (UOES) contingency capability to 
produce 10 kill vehicles with the appropriate boosters by 
fiscal year 1999; a review to determine the appropriate 
management structure and military service responsibility; 
report on the current status of antisatellite development 
worldwide and the degree to which United States antisatellite 
development efforts may contribute to similar development among 
other nations and their impact on U.S. operational 
capabilities; and to report the Department's recommendations to 
Congress in the fiscal year 1997 budget request. To avoid 
significant or lengthy delays in developing a needed 
capability, the conferees direct the Department to leverage, or 
build upon the current Army tactical antisatellite technology 
program. The conferees note that authorization of funds for 
continued development of the tactical antisatellite system does 
not constitute a decision to deploy the system.

                     mission planning and analysis

      The conferees recommend that $2.5 million from Air Force 
operation and maintenance (O&M) be made available for Strategic 
Air Command (STRATCOM) mission planning and analysis. The 
STRATCOM program provides support to the regional commanders-
in-chief (CINCs) in advance planning for counterproliferation 
contingencies. This program aids commanders in identifying and 
characterizing current and emerging proliferation threats. In 
instances in which proliferation activities challenge the 
interests of the United States and its military forces and 
operations, STRATCOM mission planning and analysis capabilities 
allow defense planners to: identify a variety of potential 
military targets; assess the effectiveness, consequences and 
costs of military options; and develop alternative contingency 
plans that would maximize mission effectiveness, and minimize 
the risks, costs, and collateral effects.

     improved nuclear detection and forensic analysis capabilities

      Due to an increase in international terrorism and 
attempts by criminal elements to acquire weapons-grade nuclear 
material, the conferees recommend $11.0 million to accelerate 
the development of improved nuclear detection and forensic 
analysis capabilities in PE 62301E, project ST23. The conferees 
direct the ARPA to closely coordinate its efforts in this area 
closely coordinate with the counterproliferation support 
program manager in the Department of Defense and the 
interagency group on counterproliferation.
Nonlethal Weapons Program (sec. 219)
      The Senate bill contained a provision (sec. 218) that 
would establish a new, consolidated program for non-lethal 
systems and technology. The program would be managed by the 
Office of Strategic and Tactical Systems of the Under Secretary 
of Defense for Acquisition and Technology. The provision would 
create a new program element within the defense budget for this 
program, and transfer funds from PE 603570D, PE 603750D, PE 
603702E, and PE 603226E into this new program element.
      The House bill contained no similar provision.
      The House recedes with an amendment that would express 
congressional recognition of the U.S. armed forces increasing 
role in operations other than war, recognition of support for 
the use of nonlethal weapons and systems across the spectrum of 
conflict, and concern that development of these technologies is 
being spread across the budgets of the military services and 
defense agencies. The conferees direct the Department of 
Defense to submit a report to Congress by February 15, 1996 and 
direct the Secretary of Defense to assign responsibility for 
the nonlethal weapons program to an existing office within the 
Office of the Secretary of Defense or designate an executive 
agent from the military services, to establish centralized 
responsibility for development and fielding of nonlethal 
weapons technology. The conferees authorize $37.2 million in a 
new defense program element for nonlethal weapons programs and 
nonlethal technologies programs.
      The conferees believe that centralized responsibility for 
the nonlethal weapons program will ensure effective program 
management and expeditious development, acquisition, and 
fielding of nonlethal weapons and systems. The conferees 
further understand that both the Department of the Army and the 
Marine Corps are the primary users of these technologies and 
recommend the designation of either military service as the 
executive agent for this important program. Further, the 
conferees understand that the Department of the Army and the 
Marine Corps have closely coordinated their efforts in this 
area and expect this coordination to continue to ensure 
centralized management and improved budgetary focus for the 
nonlethal weapons program. The provision would also require the 
Department to report to Congress by February 15, 1996 on the 
designation of the executive agent for oversight of the 
program, the acquisition plan, the time frame for fielding 
systems, current and anticipated military requirements, and the 
Department of Defense policy regarding the nonlethal weapons 
program.
Federally-funded research and development centers (sec. 220)
      The House bill contained a provision (sec. 257) that 
would require the Secretary of Defense and the Secretaries of 
the Army, Navy, and Air Force to reevaluate the functions of 
Federally-Funded Research and Development Centers (FFRDCs) and 
to achieve certain reductions, consolidations and management 
goals. The provision would limit FFRDC funding to $1.15 billion 
and reduce funding for FFRDCs and University-Affiliated 
Research Centers (UARC) by $90.1 million.
      The Senate amendment contained a provision (sec. 219) 
that would require an undistributed reduction in FFRDC funding 
of $90.0 million, below the ceiling for fiscal year 1995, and 
would establish a statutory ceiling for FFRDCs of $1.2 billion 
in fiscal year 1996.
      The Senate recedes with an amendment. The conferees agree 
to reduce the funding for FFRDCs and UARCs by $90.0 million in 
fiscal year 1996 and direct that not more than $9.0 million of 
this reduction be applied to funding for UARCs. The conferees 
have included language that would require the Secretary of 
Defense to manage the UARCs at the fiscal year 1995 level. The 
conferees direct the Secretary of Defense to ensure adequate 
funding in fiscal year 1996 for those FFRDCs that engage in 
studies and analysis for the Office of the Secretary of Defense 
and the services. The conferees also direct the Secretary to 
examine the possibility of increasing the use of the Software 
Engineering Institute in support of command, control, 
communications, computing, and intelligence programs managed by 
the Office of the Secretary of Defense.
Joint seismic program and global seismic network (sec. 221)
      The Senate amendment contained a provision (sec. 224) 
that would authorize $9.5 million of unobligated fiscal year 
1995 funds in Air Force research and development for the joint 
seismic program (JSP) and the global seismic network (GSN) to 
provide more robust monitoring research and expanded seismic 
monitoring of potential nuclear tests.
      The House bill contained no similar provision.
      The conferees agree to a provision that would authorize 
$9.5 million in fiscal year 1996 for the joint seismic and 
global seismic network programs. The conferees understand that 
no future year funds would be required for this program. 
Further, the conferees direct the Department of Defense 
Comptroller to release the funds in a timely manner so that the 
programs can be completed.

Hydra-70 rocket product improvement program (sec. 222)

      The Senate amendment contained a provision (sec. 113) 
that would prohibit the obligation of funds to procure Hydra-70 
rockets until the Secretary of the Army submitted 
certifications regarding: identification of causes and 
technical corrections of Hydra-70 rocket failures; comparative 
cost of correcting all Hydra-70 rockets versus the non-
recurring costs of acquiring improved rockets; review and 
qualification of commercial, nondevelopmental systems to 
replace Hydra-70 rockets; the availability of training rockets 
to meet Army requirements; and the attainment of competition in 
future procurements of training rockets.
      The House bill contained no similar provision.
      The House recedes with an amendment.
      The conferees agree to authorize up to $10.0 million for 
full qualification and operational platform certification of a 
Hydra-70 rocket with a 2.75-inch rocket motor with composite 
propellant, for use on the AH-64D Apache helicopter.

Limitation on obligation of funds until receipt of electronic combat 
        consolidation master plan (sec. 223)

      The conferees agree to a provision that limits the 
obligation of appropriations for PE 65896A, PE 65864N, PE 
65807F, and PE 65804D until 14 days after the Department of 
Defense submits to the congressional defense committees its 
master plan for the consolidation of electronic combat test and 
evaluation assets.
      The House report (H. Rept. 103-499) directed the 
Secretary of Defense to develop a master plan for future 
consolidation of all DOD electronic combat test and evaluation 
assets. Further, the House report directed that no fiscal year 
1995 or prior year funds be used to transfer or consolidate 
electronic combat test and evaluation assets until 30 days 
after the submission of the master plan to the congressional 
defense committees. To date, the master plan has not been 
provided to the congressional defense committees and funds 
continue to be obligated for purposes that contravene the House 
report language.
Requirement for report on reductions in research, development, test, 
        and evaluation (sec. 225)
      The conferees agree to a provision that requires the 
Under Secretary of Defense (Comptroller) to submit a report to 
the congressional defense committees by March 15, 1996 
detailing the allocation of the following reductions in 
research, development, test, and evaluation required by the 
Department of Defense Appropriations Act of 1996: (1) general 
reductions; (2) reductions to reflect savings from revised 
economic assumptions; (3) reductions to reflect the funding 
ceiling for federally funded research and development centers; 
and (4) reductions for savings through improved management of 
contractor automatic data processing cost charged through 
indirect rates on Department of Defense acquisition contracts.
Advanced field artillery system (Crusader) (sec. 226)
      The House bill contained a provision (sec. 255) that 
would impose spending authority limitations on the Secretary of 
the Army, unless certain technical performance criteria are 
achieved in the Crusader program. The provision would permit 
the Secretary to significantly alter the Crusader acquisition 
plan for the cannon propellant, if it is required to achieve 
the objectives of the Advanced Field Artillery System, provided 
notification is given to the defense committees of the Senate 
and House of Representatives.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would terminate 
funding for the liquid propellant portion of the Crusader 
program in the event that the Secretary fails to provide a 
report to the congressional defense committees by August 1, 
1996, documenting that significant progress has been made in 
the liquid propellant and regenerative liquid propellant gun, 
in accordance with the acquisition program baseline objectives.
Demilitarization of conventional munitions, rockets, and explosives 
        (sec. 227)
      The House bill contained a provision (sec. 263) that 
would authorize $15.0 million for the establishment of an 
integrated program for the development and demonstration of 
environmentally compliant technologies for the demilitarization 
of conventional munitions, explosives, and rocket motors, and 
indicated specific technologies that should be considered in 
the program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delete 
reference to specific technologies that should be considered in 
the program. The amendment reflects a conference agreement to 
authorize $15.0 million in PE 63104D for the Conventional 
Munitions, Rockets, and Explosives Demilitarization account.
      The conferees are concerned about requirements for 
disposal by the military services and defense agencies of 
growing numbers of unserviceable, obsolete, or non-treaty 
compliant munitions, rocket motors and explosives. As 
environmental constraints increasingly restrict the traditional 
disposal methods of open burning or open detonation, 
development and demonstration of environmentally compliant 
technologies for this purpose become even more urgent.
      The conferees believe that a centralized conventional 
munitions and explosives disposal program should be established 
for this purpose within the Department of Defense (DOD) under a 
single program element, and that consideration should be given 
to the model of the Large Rocket Motor Demilitarization 
program, centrally managed by the Army as executive agent, with 
the requirements of the military services integrated through 
the Joint Ordnance Commanders' Group. In such a program, the 
conferees encourage the consideration of a range of 
competitively selected potential resource recovery and 
alternative demilitarization technologies, including (but not 
limited to) cryogenic washout, supercritical water oxidation, 
molten metal pyrolysis, plasma arc, catalytic fluid bed 
oxidation, molten salt pyrolysis, plasma arc, catalytic fluid 
bed oxidation, molten salt oxidation, incineration, critical 
fluid extraction and ingredient recovery, and underground 
contained burning.
      The conferees direct the Secretary of Defense to submit a 
report of the DOD plan for the establishment of such a program 
to the congressional defense committees by March 31, 1996.
Defense airborne reconnaissance program (sec. 228)
      The budget request included $525.2 million for research 
and development for the Defense airborne reconnaissance program 
(DARP).
      The House bill would add a total of $121.6 million to the 
requested amount. The Senate amendment would increase the 
request by $33.0 million. Details of the adjustments in the 
House bill and the Senate amendment, as well as the final 
conference agreement, are displayed in the table below:

------------------------------------------------------------------------
                                Budget     House     Senate   Conference
                                request    bill    amendment   agreement
------------------------------------------------------------------------
      Total..................    $525.2   +$121.6     +$33.0    +$114.8 
                              ------------------------------------------
UAV programs:                                                           
  Joint tactical maneuver....  ........     -36.8  .........      -10.0 
    Hunter...................  ........  ........  .........  ..........
    Navy variant (VTOL)......  ........  ........  .........      +12.5 
  Tier II....................  ........     +25.9  .........      +25.3 
  Tier II+...................  ........     +60.0  .........  ..........
  Tier III...................  ........     +35.0  .........      +18.0 
U-2 upgrade programs:                                                   
  SYERS......................  ........     +14.0  .........      +14.0 
  Defensive systems..........  ........  ........      +13.0      +10.0 
  SIGINT.....................  ........  ........      +20.0      +20.0 
  PGMs.......................  ........       -10  .........  ..........
Other programs:                                                         
  CIGGS......................  ........     +16.0  .........      +11.0 
  Common data link...........  ........      +0.5  .........  ..........
  EO framing sensors.........  ........      +5.0  .........       +7.0 
  MSAG.......................  ........     +12.0  .........       +8.0 
------------------------------------------------------------------------

               MANNED AND UNMANNED RECONNAISSANCE SYSTEMS

      The conferees remain optimistic about the future 
contributions of unmanned aerial vehicle (UAV) systems to the 
Department of Defense's (DOD) reconnaissance missions. However, 
the conferees remain unwilling to sacrifice proven manned 
systems in the near-term for the promise of unproven future 
systems. Further, the conferees believe five major UAV programs 
are overly redundant. The conferees are aware of the 
Department's intent to reduce the number of UAVs to satisfy the 
tactical, theater, and strategic missions. The conferees agree 
that it is important for the Department to satisfy these three 
distinct missions.
      Further, the conferees believe the Department's endurance 
UAV programs must be viewed in the larger context of the broad 
area search/wide area surveillance missions. The conferees are 
concerned that the current and projected array of sensors 
(including Tier II+ and Tier III- UAVs, SR-71, U-2, and 
national systems) are not simply ``complementary'', but are 
``duplicative''. The conferees will, therefore, remain 
extremely interested in the Department's future directions with 
respect to high altitude endurance UAV efforts.

                              MANEUVER UAV

      The budget request included $36.8 million for the 
maneuver UAV.
      The House will would deny any authorization for the 
maneuver UAV because the Department had failed to provide 
either a joint operational requirements document (JORD) or a 
cost and operational effectiveness analysis (COEA) in a timely 
manner.
      The Senate amendment would approve the budget request.
      The conferees agree to authorize $26.8 million for the 
maneuver UAV. The conferees are disappointed that the 
Department took so long to complete the JORD and the COEA. The 
conferees hope that the results of the ongoing review of the 
various UAV programs will be provided to the congressional 
defense and intelligence committees in a more timely fashion.

                           joint tactical uav

      The conferees remain particularly concerned about the 
Department's inability to develop and pursue a cohesive joint 
tactical UAV (JT-UAV) master plan for longer than a four month 
period. The conferees direct the Department not to use 
appropriated fiscal year 1996 funds to procure production 
Hunter UAV systems or additional low rate initial production 
units beyond those already ordered. The conferees intend that 
this prohibition remain in effect until the Department provides 
the congressional defense and intelligence committees with the 
results of its UAV program review. Accordingly, if the 
Department's review results in the cancellation of one or more 
of the currently planned UAV programs, the conferees direct the 
Department to seek reprogramming actions to use those funds to 
satisfy other CINC near-term reconnaissance support 
requirements. Any funds made available as a result of 
Department decisions on UAVs will remain within the DARP 
account. Of any resources made available from UAV 
restructuring, the conferees direct that the Department use 
them to fully fund the U-2 sensor upgrades described later in 
this section. Any additional excess resources over those used 
for U-2 sensor upgrades may be used for the naval variant 
(VTOL). Further, the conferees specifically deny authorization 
of any fiscal year 1996 funds for marinization of the Hunter 
UAV.

                           naval variant uav

      The conferees agree that development and evaluation of a 
joint tactical UAV (JT-UAV) short or vertical take-off and 
landing (STOL/VTOL) variant for naval applications should be 
continued and structured on existing successful efforts. The 
conferees agree to authorize an additional $12.5 million to 
support continued development and evaluation of VTOL JT-UAV 
variants, as detailed in the Senate report (S. Rept. 104-112). 
The conferees intend that the Department limit its air vehicle 
evaluation to items that are low risk, currently available off-
the-shelf, and have the demonstrated potential to meet joint 
tactical UAV interoperability and performance requirements.

                medium altitude endurance uav (predator)

      The House bill would authorize an additional $25.9 
million for the Tier II medium altitude endurance UAV 
(Predator).
      The Senate amendment included a provision (sec. 131) that 
would deny funds for the Tier II system.
      The Senate recedes.
      The conferees agree to authorize an additional $25.3 
million for another Predator system (air vehicles and ground 
station) and replacement air vehicles. The conferees are 
encouraged by the successes of the Predator advanced concept 
technology program, and particularly by the theater commanders' 
praise for its contributions in the Bosnia area. The conferees 
strongly support continuation of this ACTD, and encourage the 
Department to take the necessary steps to make a full 
production decision. The conferees believe this vehicle could 
satisfy multiple operational roles, including the theater and 
maritime roles. The conferees encourage the Department to 
develop plans for a maritime use of this vehicle. Such planning 
should include conducting an operational demonstration at sea. 
Finally, the conferees agree to authorize all prior year 
allocated funds.

                      HIGH ALTITUDE ENDURANCE UAVS

      The House bill would authorize an additional $60.0 
million for the Tier II+ and $35.0 million for the Tier III-.
      The Senate amendment would authorize the budget request 
for both programs.
      The House recedes on Tier II+. The Senate recedes on the 
Tier III-. The conferees agree to authorize an additional $18.0 
million for Tier III-.
      As with the JT-UAV, the conferees expect the Department 
to make acquisition decisions on this issue based on 
operational requirements. However, the conferees emphasize that 
the Department needs a more capable, low observable vehicle. 
The conferees agree that the Department should use the 
additional $18.0 million for Tier III- to buy the third air 
vehicle in fiscal year 1996, instead of fiscal year 1997. The 
conferees direct the Department to provide the congressional 
defense and intelligence committees with a report on the 
operational user needs for such a vehicle. If the current 
estimate of the Tier III- system capabilities fall short of 
those needs, the Department should outline its technical 
proposals to improve this vehicle, in response to those user 
requirements.

                          U-2 SENSOR UPGRADES

      The House bill would authorize an additional $14.0 
million to upgrade all Senior Year electro-optical 
reconnaissance sensors (SYERS) to the newest configuration, 
upgrade existing ground stations, and improve geolocational 
accuracy through various product improvements.
      The Senate amendment would authorize an additional $20.0 
million to initiate the remote airborne SIGINT system upgrade 
program.
      The Senate report (S. Rept. 104-112) contained a 
technical error in the table for Research, Development, Test, 
and Evaluation (RDT&E), Defense-Wide, that shows an increase in 
the DARP PE 35154D, line 102, rather than in line 124. This 
error was facilitated by the Department's budget exhibit for 
RDT&E programs (R-1) in which both of these budget lines are 
associated with the same program element. The conferees 
encourage the Defense Airborne Reconnaissance Office (DARO) to 
carry a single R-1 line for an individual program element in 
the future.
      The conferees view with concern the DARO's lack of 
emphasis on manned reconnaissance upgrades, and include a 
provision that requires the Director of the DARO to 
expeditiously carry out those upgrades. The conferees agree to 
authorize $34.0 million to meet U-2 sensor upgrade 
requirements, and direct the Secretary of Defense to provide a 
report on the Department's plans to obligate funds for U-2 
upgrades prior to February 1, 1996.

                         U-2 DEFENSIVE SYSTEMS

      The conferees agree to authorize $10.0 million to upgrade 
U-2 defensive systems for the purposes specified in the Senate 
Report (S. Rept. 104-112).

              COMMON IMAGERY GROUND/SURFACE SYSTEM (CIGSS)

      The budget request included $161.8 million for the CIGSS 
effort.
      The House bill would authorize an additional $16.0 
million. This increase would be used to mitigate a near-term 
funding shortfall for DARO's ``migration'' of the various 
imagery ground stations to a common architecture.
      The Senate amendment would approve the budget request.
      The conferees agree to authorize an additional $11.0 
million for this effort.

                       INTELLIGENCE DISSEMINATION

      The budget request included funds for numerous 
intelligence dissemination systems and data links.
      The House bill would restrict the use of funds pending 
the Department's development of a coherent, long-term 
intelligence dissemination architecture and a plan for 
development of a joint tactical transceiver (JTT).
      The Senate amendment would authorize the requested 
amounts.
      The House recedes.
      The conferees are pleased with the Department's response 
to the House bill provision. The conferees believe that the 
Department is moving in the right direction to ensure service 
interoperability and to reduce the number of unique tactical 
intelligence transceivers. Additionally, the conferees are 
aware that the Assistant Secretary of Defense for Command, 
Control, Communications, and Intelligence is monitoring efforts 
to develop advanced software reprogrammable radios. The 
conferees strongly encourage continued involvement in this 
technology development, as it appears to have great potential 
for future application in the JTT program. The conferees will 
continue to monitor the progress of the Department's approach.

               ELECTRO-OPTICAL FRAMING SENSOR DEVELOPMENT

      The House would authorize an additional $5.0 million to 
continue development and evaluation of airborne electro-optic 
framing sensor and multi-spectral framing technologies with on-
chip forward motion compensation. These improved capabilities 
could be used to support precision targeting.
      The Senate amendment included no similar adjustment.
      The conferees agree to authorize $7.0 million for this 
purpose.
      The conferees are pleased with the results of the four 
million picture element (four mega-pixel) framing 
demonstration. The conferees encourage the Department to 
program funding to accelerate the four mega-pixel and the 25 
mega-pixel sensor initiatives.

              MULTI-FUNCTION SELF-ALIGNED GATE TECHNOLOGY

      The conferees agree to authorize $8.0 million for multi-
function self-aligned gate (MSAG) technology for the purposes 
specified in the House report (H. Rept. 104-131).

                   JOINT AIRBORNE SIGINT ARCHITECTURE

      The budget request included $88.8 million for the joint 
airborne signals intelligence (SIGINT) architecture (JASA) 
program.
      The House bill would restrict obligation of fiscal year 
1996 funds for JASA to no more than 25 percent of available 
funds until the Department submits an analysis and report that 
includes a comparison of future years defense programs (FYDP) 
and life cycle costs for development and fielding of the joint 
airborne SIGINT system (JASS), and that address a more 
conventional, evolutionary, product-improvement approach.
      The Senate amendment would authorize the requested 
amount.
      The House recedes on the funding restrictions.
      Despite their support for the evolving concept and 
development of JASA, the conferees remain concerned about 
several issues:
            (1) the Department's ability to sustain current 
        operational systems;
            (2) elimination of the potential for airborne 
        SIGINT modernization gaps prior to fielding JASA 
        components;
            (3) the projected costs of the JASS program; and
            (4) the risk that current approaches may sacrifice 
        near and mid-term operational requirements for promised 
        long-term common solutions.
      The conferees believe that there is a need to continue 
interim, affordable, incremental upgrades, and to provide quick 
reaction capability improvements to meet emerging requirements, 
while continuing the JASA architectural approach. The conferees 
encourage competitive evolutionary solutions to satisfy 
existing and projected SIGINT requirements, and urge the 
earliest delivery of architecturally compliant components for 
evolving current and future systems. The conferees expect 
future budget requests for the DARO to include funding for 
these efforts. The conferees direct the DARO Director to 
certify to the congressional defense and intelligence 
committees that the individual SIGINT systems will be upgraded 
to incorporate these interim needs, as identified by the 
operational users.
      The conferees direct the Department to provide an interim 
report by March 1, 1996, with a completed report by August 1, 
1996, that includes:
            (1) an independent cost and operational 
        effectiveness analysis that compares the FYDP and life-
        cycle costs of the JASS program to an evolutionary 
        product improvement approach, based on equivalent 
        system performance;
            (2) an evaluation of cost, technical and schedule 
        risks, as well as a comparison of technical 
        requirements and JASS performance; and
            (3) the Department's assessment of its ability to 
        predict both the future threat and technology 
        environments necessary to determine whether a single 
        approach is viable and in the nation's best interests.
      Finally, to ensure that there are no airborne SIGINT 
capability gaps during the transition to JASA, DARO is directed 
to determine and implement necessary quick-reaction 
improvements to existing airborne systems. The conferees intend 
that the Department pursue a balanced approach to JASA 
development that allows the services to program funds for such 
evolutionary upgrades, provided there is compliance with an 
overall migration to the JASA architecture.
Ballistic missile defense policy (secs. 231-253)
      The House bill contained eight provisions (secs. 231-238) 
that collectively would be called the ``Ballistic Missile 
Defense Act of 1995.'' The House bill contained four additional 
provisions (secs. 241-244) that would also deal with matters 
related to ballistic missile defense (BMD).
      The Senate amendment contained eleven provisions (secs. 
231-241) that collectively would be called the ``Missile 
Defense Act of 1995.'' The Senate amendment contained two 
additional provisions (secs. 227 and 243) that would also deal 
with matters related to BMD.
      The conference agreement combines the House and the 
Senate BMD provisions into two subtitles as described below.

           Subtitle C--Ballistic Missile Defense Act of 1995

Short title (sec. 231)
      The House bill contained a provision (sec. 231) that 
would entitle this group of provisions the ``Ballistic Missile 
Defense Act of 1995.''
      The Senate amendment contained a provision (sec. 231) 
that would use a different title--``Missile Defense Act of 
1995''--reflecting the fact that the Senate version included a 
provision dealing with cruise missile defense.
      The Senate recedes.
Findings (sec. 232)
      The Senate amendment contained a provision (sec. 232) 
that would establish a series of congressional findings as the 
rationale for developing and deploying theater and national 
ballistic missile defenses.
      The House bill contained a provision (sec. 242) that 
would make several similar findings.
      The House recedes with an amendment merging the House and 
Senate findings.
Ballistic Missile Defense Policy (sec. 233)
      The House bill contained a provision (sec. 232) that 
would establish a United States policy to: (1) deploy at the 
earliest practical date highly effective theater missile 
defenses; and (2) deploy at the earliest practical date a 
national missile defense (NMD) system that is capable of 
providing a highly effective defense of the United States 
against limited ballistic missile attacks.
      The Senate amendment contained a similar provision (sec. 
233) that would establish a United States policy to: (1) deploy 
as soon as possible affordable and operationally effective 
theater missile defenses; (2) develop for deployment a multiple 
site national missile defense system (that can be augmented to 
a layered defense over time) while initiating negotiations to 
amend the Anti-Ballistic Missile (ABM) Treaty; (3) ensure 
congressional review prior to a decision to deploy the NMD 
system; (4) improve existing cruise missile defense systems and 
deploy as soon as practical defenses against advanced cruise 
missiles; (5) pursue a focused research and development program 
to provide follow-on ballistic missile defense options; (6) 
employ streamlined acquisition procedures in developing and 
deploying missile defenses; (7) seek a cooperative transition 
to a regime that does not feature mutual assured destruction 
and an offense-only form of deterrence as the basis for 
strategic stability; and (8) carry out the policies, programs, 
and requirements of the Missile Defense Act through processes 
specified within, or consistent with, the ABM Treaty.
      The House recedes with an amendment to establish a United 
States policy to: (1) deploy affordable and operationally 
effective theater missile defenses to protect forward-deployed 
and expeditionary elements of the armed forces of the United 
States and to complement and support the missile defense 
capabilities of the forces of coalition partners and allies of 
the United States; and (2) seek a cooperative transition to a 
regime that does not feature mutual assured destruction and an 
offense-only form of deterrence as the basis of strategic 
stability.
Theater Missile Defense Architecture (sec. 234)
      The House bill contained a provision (sec. 233) that, in 
part, would direct the Secretary of Defense to develop and 
deploy at the earliest practical date advanced theater missile 
defense (TMD) systems. The House bill contained another 
provision (sec. 236) that would establish a ballistic missile 
defense program accountability report.
      The Senate amendment contained a provision (sec. 234) 
that would provide detailed policy guidance related to theater 
missile defense. The provision would establish a core theater 
missile defense program (the Theater High Altitude Area Defense 
system, the Navy Upper Tier system, the Patriot PAC-3 system, 
and the Navy Lower Tier system) with programmatic milestones 
for each core system, require that the systems in the core 
program be interoperable and mutually supporting, establish 
guidelines for creating new core systems, and require the 
Secretary of Defense to provide the congressional defense 
committees a TMD Architecture report along with the fiscal year 
1997 budget submission.
      The House recedes with an amendment to integrate elements 
of the House's ballistic missile defense program accountability 
provision into a revised TMD reporting requirement, and to make 
technical and clarifying changes. Included is a requirement 
that the Secretary of Defense report on the following matters 
to the Senate Committee on Armed Services and the House 
Committee on National Security whenever the Secretary issues an 
ABM Treaty compliance certification for any TMD system: (1) the 
compliance policy applied in preparing such a certification; 
(2) how the policy applied differs from the policy stated in 
section 235(b)(1) of this Act (the so-called ``demonstrated 
standard''); and (3) how the application of that compliance 
policy (rather than the ``demonstrated standard'') will affect 
the cost, schedule, and performance of the TMD system being 
considered.
Prohibition on use of funds to implement an international agreement 
        concerning theater missile defense systems (sec. 235)
      The House bill contained a provision (sec. 235) that 
would establish a theater missile defense demarcation standard 
(the so-called ``demonstrated standard'' based on the range and 
speed of the target) and would prohibit the obligation or 
expenditure of funds appropriated for the Department of Defense 
to implement or employ any other standard.
      The Senate amendment contained a related provision (sec. 
238) that would: (1) express the sense of Congress that the 
``demonstrated standard'' is the appropriate standard for 
defining a TMD demarcation; and (2) prohibit the use of funds 
appropriated for the Department of Defense in fiscal year 1996 
to implement an international agreement that is inconsistent 
with this standard, unless such agreement receives Senate 
advice and consent to ratification, or is specifically approved 
in a subsequent Act.
      The House recedes with a clarifying amendment.
Ballistic missile defense cooperation with allies (sec. 236)
      The House bill contained a provision (sec. 242) that, in 
part, would endorse cooperation in the area of ballistic 
missile defense between the United States and its allies and 
coalition partners, and that would urge the President to: (1) 
pursue high-level discussions with allies of the United States 
and selected other states on the means and methods by which the 
parties can cooperate in the development, deployment, and 
operation of ballistic missile defenses; (2) take the 
initiative within the North Atlantic Treaty Organization to 
develop a consensus for deployment of BMD by the Alliance; and 
(3) seek agreement with U.S. allies and selected other states 
on steps the parties can take to reduce the risks posed by the 
threat of limited ballistic missile attacks.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment to include the House 
language on BMD cooperation with allies as a free-standing 
provision.
ABM Treaty defined (sec. 237)
      The House bill contained a provision (sec. 237) that 
would define the ABM Treaty.
      The Senate amendment contained a similar provision.
      The Senate recedes with a technical amendment.
Repeal of Missile Defense Act of 1991 (sec. 238)
      The House bill contained a provision, (sec. 238) that 
would repeal the Missile Defense Act of 1991.
      The Senate amendment contained a similar provision (sec. 
241(1)).
      The Senate recedes.

         Subtitle D--Other Ballistic Missile Defense Provisions

Ballistic Missile Defense Program Elements (sec. 251)

      The Senate amendment contained a provision (sec. 239) 
that would establish seven program elements for the Ballistic 
Missile Defense Organization's budget.
      The House bill contained no similar provision.
      The House recedes with an amendment creating eight 
program elements.

Testing of theater missile defense interceptors (sec. 252)

      The House bill contained a provision (sec. 243) that 
would amend subsection (a) of section 237 of Public Law 103-
160, pertaining to the testing of theater missile defense 
interceptors.
      The Senate amendment contained a similar provision (sec. 
227) that also would relate to the testing of theater missile 
defense interceptors.
      The Senate recedes.

Repeal of missile defense provisions (sec. 253)

      The Senate amendment contained a provision (sec. 241) 
that would repeal ten outdated BMD-related provisions of law.
      The House bill contained a similar provision (sec. 244) 
that would repeal six outdated BMD-related provisions of law.
      The House recedes with an amendment. The Conferees agree 
to repeal nine outdated BMD-related provisions of law.

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

Precision guided munitions (sec. 261)
      The Senate amendment contained a provision (sec. 215) 
that would require the Secretary of Defense, not later than 
February 1, 1996, to submit a report that contains an analysis 
of the full range of precision guided munitions (PGM) in 
production, and in research, development, test and evaluation. 
The analysis would address the following:
            (1) The types of precision guided munitions needed 
        to destroy various service target classes;
            (2) The feasibility of joint development programs 
        to meet the needs of various Services; and
            (3) The economy and effectiveness of continued 
        acquisition of ``interim'' PGMs.
      The House bill contained no legislative provision on 
PGMs, but directed the Secretary to conduct a similar analysis 
in its report (H. Rept. 104-131) accompanying the bill.
      The conferees agree to the Senate provision, with an 
amendment that would extend the reporting deadline to April 15, 
1996.
Review of C4I by National Research Council (sec. 262)
      The House bill contained a provision (sec. 256) that 
would direct the Secretary of Defense to enter into a contract 
with the National Research Council of the National Academy of 
Sciences to conduct a review of Department of Defense programs 
for command, control, communications, computers, and 
intelligence. The study would be conducted over a two-year 
period and $900.0 thousand would be available for the cost of 
the study.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Analysis of consolidation of basic research accounts of military 
        departments (sec. 263)
      The House bill contained a provision (sec. 252) that 
would direct the Secretary of Defense to fund the equivalent of 
a cost and operational effectiveness study of the consolidation 
of the indivdiual services' basic research accounts to 
determine potential infrastructure savings.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Change in the annual reporting period, from calendar to fiscal year, on 
        certain contracts with colleges and universities. (sec. 264)
      The House bill contained a provision (sec. 253) that 
would amend section 2361 of title 10, United States Code, to 
change the annual reporting period from the preceding 
``calendar'' year to each preceding ``fiscal'' year on the use 
of competitive procedures for awards of research and 
development contracts, and the award of construction contracts 
to colleges and universities.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Aeronautical research and test capabilities assessment (sec. 265)
      The House bill contained a provision (sec. 260) that 
would require the Secretary of Defense to assess aeronautical 
research and test facilities and capabilities of the United 
States, and to provide a report to the congressional defense 
committees detailing the findings and recommendations of the 
assessment.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                       Subtitle F--Other Matters

 Advanced lithography program (sec. 271)
      The House bill contained a provision (sec. 214) that 
would amend section 216 of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337). The provision 
would permit the Director of the Advanced Research Projects 
Agency (ARPA) to consider Semiconductor Industry Association 
and Semiconductor Technology Council recommendations as 
advisory and would allow ARPA to establish priorities and 
funding levels for the program, consistent with the best 
interests of national security. The provision would also add a 
goal that the program ensure that the use of lithographic 
processes, being developed by American-owned manufacturers in 
the United States, would lead to superior performance 
electronics systems for the Department of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would clarify 
the term ``American-owned manufacturer'' to mean that it would 
be consistent with the definition of ``United States-owned 
company'' and ``United States incorporated company'' in section 
278 (n) of title 15, United States Code.

Enhanced fiber optic guided missile system (sec. 272)

      The House bill contained a provision (sec. 215) that 
would require the Secretary of the Army to certify whether 
there is a requirement for the enhanced fiber optic guided 
missile (EFOG-M) system, and whether there is a cost and 
effectiveness analysis supporting such requirement. The 
provision would also limit funding for the EFOG-M program if 
the test of operational missiles and associated fire units are 
not delivered on time and within current cost estimates.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the certification of the Secretary of the Army regarding a 
requirement and a cost and effectiveness analysis to support 
the requirement for the EFOG-M system to be provided following 
completion of the Advanced Concept Technology Demonstration 
(ACTD), instead of before the ACTD, as proposed by the House.

States eligible for assistance under Defense Experimental Program to 
        Stimulate Competitive Research (DEPSCoR) (sec. 273)

      The Senate amendment contained a provision (sec. 220) 
that would modify the graduation criteria for states 
participating in the Department of Defense EPSCoR program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would provide 
for the use of a three year average to determine, on a state-
by-state basis, whether a state institution of higher learning 
receives 60 percent of the average amounts for research and 
engineering obligated by the Department of Defense.
Cruise missile defense initiative (sec. 274)
      The Senate amendment contained a provision (sec. 236) 
that would establish a cruise missile defense initiative. The 
provision would require the Secretary of Defense to strengthen 
and coordinate the cruise missile defense programs of the 
Department of Defense, and provide Congress with a report 
describing the Secretary's plans for implementing this 
provision.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
University research initiative support program (sec. 275)
      The House bill contained a provision (sec. 254) that 
would amend Section 802 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160). The provision 
would change the university research initiative support program 
from a mandatory program to a voluntary program and provide for 
improved review procedures.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Revisions of manufacturing of science and technology program (sec. 276)
      The House bill contained a provision that would eliminate 
the technology-based focus for the manufacturing of science and 
technology program, and provide new emphasis on near-term cost 
reduction applications. The provision would also require a 
larger non-federal government cost share for 25 percent of the 
program appropriation, and eliminate cost share for academic 
institutions.
      The Senate amendment contained a provision (sec. 222) 
that would amend section 2525 of title 10, United States Code, 
in two ways. The provision clarified the role of the Joint 
Directors of Laboratories in establishing the Manufacturing 
Science and Technology Program. The provision included a 
requirement that manufacturing equipment producers be more 
directly involved in projects funded under this program.
      The conferees agree to an amendment that would combine 
the House and Senate provisions.
      The conferees support the transfer of the MANTECH program 
from advanced development to a Research, Development, Test & 
Evaluation (RDT&E) production support account to ensure direct 
impact of manufacturing technology on reduction of production 
and repair costs for todays systems. However, the conferees 
direct that a balance be maintained between near-term 
manufacturing solutions for weapons systems and the long range 
manufacturing design needs, such as implementing Integrated 
Products and Process Development (IPPD) in future systems.
      The conferees would include the House provision to set 
aside 25 percent of the funding for the manufacturing 
technology program for entering into contracts and cooperative 
agreements, on a cost-share basis, in which the ration of 
funding provided by non-federal and federal participants is 2 
to 1. The conferees have included a provision that would allow 
the Under Secretary of Defense for Acquisition and Technology 
to waive the requirement after July 15 of each fiscal year. The 
conferees direct that contracts and cooperative agreements 
awarded to meet this requirement be on a project-by-project 
basis. The conferees direct that the Department maximize the 
number of contracts and cooperative agreements, to the extent 
practicable.
      The conferees expect the Department of Defense and the 
services to request an aggressive fiscal year 1997 MANTECH 
budget that reflects program needs. As a goal, the Department 
should consider funding this program at approximately one 
percent of the services' RDT&E budgets. The conferees also 
believe that the Secretary of Defense should place the highest 
priority on addressing the management and budget process issues 
that have adversely affected the MANTECH program.
Five-year plan for consolidation of defense laboratories and test and 
        evaluation centers (sec. 277)
      The House bill contained a provision (sec. 259) that 
would require the Secretary of Defense to prepare a five year 
strategic plan to consolidate and restructure the Department's 
research and development laboratories and test and evaluation 
centers.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment to include 
additional study parameters and to adjust the limitation on 
funding obligations; from 40 percent to 75 percent for the 
central test and evaluation investment development program 
pending submission of the report to Congress.

Limitation on T-38 avionics upgrade program (sec. 278)

      The House bill contained a provision (sec. 261) that 
would allow the Department of the Air Force to consider foreign 
companies for the award of the contract for the T-38 aircraft 
avionics upgrade program only if such companies are 
headquartered in countries that allow equal access to United 
States companies for such contracts.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Global Positioning System (sec. 279)

      The Senate amendment contained a provision (sec. 1081) 
that would require the Secretary of Defense to suspend use of 
the selective availability feature of the Global Positioning 
System (GPS) by May 1, 1996, unless the Secretary develops a 
plan for dealing with the challenges associated with GPS 
jamming and denial.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Army support for the National Science Center for Communications and 
        Engineering (sec. 280)

      The Senate amendment contained a provision (sec. 1085) 
that would modify the authority of the Army to provide support 
to the National Science Center outreach program.
      The House bill contained no similar provision.
      The House recedes.

                   legislative provisions not adopted

Maneuver variant unmanned aerial vehicle
      The House bill contained a provision (sec. 212) that 
would prohibit the obligation of funds appropriated or 
otherwise made available pursuant to authorizations in fiscal 
year 1996 for the Maneuver Variant Unmanned Aerial Vehicle.
      The Senate amendment contained no similar provision.
      The House recedes.
National missile defense
      The House bill contained a provision (sec. 233) that, in 
part, would direct the Secretary of Defense to develop for 
deployment at the earliest practical date a national missile 
defense system consisting of: (1) up to 100 ground-based 
interceptors at a single site or a greater number of 
interceptors at a number of sites, as determined necessary by 
the Secretary; (2) fixed, ground-based radars; (3) space based 
sensors, including those sensor systems that are capable of 
cuing ground-based interceptors and providing initial targeting 
vectors; and (4) battle management, command, control, and 
communications.
      The Senate amendment contained a provision (sec. 235) 
that would direct the Secretary of Defense to take the 
following steps regarding national missile defense (NMD): (1) 
develop for deployment an affordable and operationally 
effective NMD system (consisting of ground-based interceptors 
capable of being deployed at multiple sites, ground-based 
radars, space-based sensors, and battle management, command, 
control, and communications) to counter a limited, accidential, 
or unauthorized ballistic missile attack, and which is capable 
of attaining initial operational capability by the end of 2003; 
(2) develop an interim operational capability plan that would 
give the United States the ability to field a limited NMD 
system by the end of 1999; (3) prescribe and use streamlined 
acquisition procedures; (4) employ additional cost saving 
measures; and (5) report on his plan for NMD deployment and an 
analysis of options for supplementing the initial NMD 
architecture to improve cost and operational effectiveness. The 
Senate amendment also contained a provision (sec. 235(d)(2)) 
that would prohibit the use of Minuteman boosters in any NMD 
architecture.
      The conference agreement does not include a provision on 
national missile defense.
Ballistic missile defense follow-on technology research and development
      The House bill contained a provision (sec. 234) that 
would provide guidance on follow-on technology development for 
theater and national ballistic missile defense programs.
      The Senate amendment contained no similar provision.
      The House recedes.
Policy regarding the ABT Treaty
      The Senate amendment contained a provision (sec. 237) 
that would clarify that the policies, programs, and 
requirements of the ``Missile Defense Act of 1995'' (subtitle C 
of title II of the Senate amendment) can be accomplished 
through processes specified in the ABM Treaty, and that would 
express the sense of Congress that the Senate should review the 
continuing value and validity of the ABM Treaty.
      The House bill contained a provision (sec. 242(c)(2)) 
that would urge the President to pursue high-level discussions 
with Russia to amend the ABM Treaty.
      The conference agreement does not include either 
provision.
Ballistic missile defense funding
      The House bill contained a provision (sec. 241) that 
would authorize $3.070 billion in Defensewide research, 
development, test, and evaluation (RDT&E) funds for ballistic 
missile defense programs.
      The Senate amendment contained no similar provision.
      The House recedes. The conferees discuss funding for 
ballistic missile defense programs elsewhere in this Statement 
of Managers.
Allocation of funds for medical countermeasures against biowarfare 
        threats
      The House bill contained a provision (sec. 251) that 
would amend section 2370a of title 10, United States Code, to 
permit the obligation or expenditure of up to 50 percent of 
funds authorized for the medical component of the Department of 
Defense Biological Defense Research program for product 
development, or for research, development, test, or evaluation 
of medical countermeasures related to mid-term or far-term 
validated biowarfare threat agents.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note with concern that the recent progress 
in bio-technology could potentially lead to the development of 
new biological warfare agents and capabilities among potential 
adversaries of the United States. The conferees direct that the 
Department report to the congressional defense committees by 
March 1, 1996 on the national security threats posed by such 
potential developments of new agents through advances in bio-
technology and genetic engineering. The report should also 
include recommendations related to reducing the impact of 
progress in these areas, examine the utility of increased 
emphasis on research and development of medical countermeasures 
related to mid-term or far-term biowarfare threat agents; and 
identify other measures that could reduce the threat of these 
technological advances and reduce the threat of biological 
agent and weapons proliferation.
Cross reference to congressional defense policy concerning national 
        technology and industrial base, reinvestment, and conversion in 
        operation of defense research and development programs
      The House bill contained a provision (sec. 262) that 
would cross-reference sections 2358(a)(2)(B) and 2371(a) with 
section 2501 of title 10, United States Code, to encourage the 
use of dual-use technology programs in defense research and 
technology programs.
      The Senate amendment contained no similar provision.
      The House recedes.
Fiber optic acoustic sensor system
      The budget request included $21.3 million in PE 63504N 
for the advanced submarine combat systems development program.
      The House bill contained a provision (sec. 264) that 
would authorize $28.2 million for the advanced submarine combat 
systems development program in fiscal year 1996, including $6.9 
million for research and development for a fiber optic acoustic 
sensor system and common optical towed array. The provision 
also reduced funding for the advanced submarine systems 
development program (PE 63561N) by $6.9 million.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees agree to the authorization of an additional 
$6.9 million above the budget request in PE 63504N for advanced 
development of fiber optic acoustic sensor systems, including 
the development of common optical towed arrays.
Joint targeting support system testbed
      The budget request included $141.4 million in PE 24229N 
for the Tomahawk missile and the Tomahawk mission planning 
center programs.
      The House bill contained a provision (sec. 265) that 
would reallocate project funding within PE 24229N. The 
provision would increase funding for Tomahawk theater mission 
planning by $10.0 million in order to establish a joint 
targeting support system testbed and would reduce funding for 
Tomahawk missile development by $10.0 million, as an offset.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees agree to an additional authorization of 
$4.0 million in PE 24229N to initiate development of a joint 
targeting support system testbed (JTSST) for demonstration of 
potential joint targeting operations. The conferees understand 
that an initial study would investigate the relative roles of 
the existing systems installed in the Tomahawk mission planning 
center and other mission planning systems that are being 
developed by the individual military services. It is recognized 
that these systems are projected to have embedded precision 
weapons planning capabilities.
      The conferees expect that the results of the initial 
JTSST study and follow-on demonstrations will contribute to the 
definition of long-term objectives, guidelines, and schedule 
milestones for convergence of the Navy/Marine Corps tactical 
aircraft mission planning systems and the Air Force mission 
support system, and should lead to the development of a joint 
mission planning system architecture for the military services.
      The conferees direct the Secretary of Defense to report 
to the congressional defense committees as soon as possible, 
but no later than the submission of the fiscal year 1998 budget 
request. This report shall describe the Secretary's plan for 
implementing the recommendations that result from the study.
Battlefield Integration Center
      The Senate amendment contained a provision (sec. 
201(4)(C)) that would authorize the use of up to $25.0 million 
in Defensewide research, development, test, and evaluation 
(RDT&E) funds made available for Other Theater Missile Defense 
activities for the Army's Battlefield Integration Center (BIC).
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $21.0 
million in PE 63308A for the BIC.
Marine Corps shore fire support
      The Senate amendment contained a provision (sec. 213) 
that would not allow more than fifty percent of the funds 
appropriated in fiscal year 1996 for the Tomahawk Baseline 
Improvement Program to be obligated until the Secretary of the 
Navy certifies that a program has been established and fully 
funded. That program would lead to a live fire test of an Army 
Extended Range Multiple Launch Rocket from an Army launcher on 
a Navy ship before October 1, 1997.
      The House bill contained no similar provision.
      The Senate recedes. Further guidance relative to the 
consideration of the Army Extended Range Multiple Launch Rocket 
System in the Navy Surface Fire Support program is contained 
elsewhere in the Statement of Managers.
Depressed altitude guided gun round (DAGGR)
      The budget request contained no funds for the depressed 
altitude guided gun round (DAGGR).
      The Senate amendment contained a provision (sec. 225) 
that would authorize $5.0 million for continued development of 
the DAGGR system.
      The House bill contained no similar provision.
      The Senate recedes. DAGGR technology has indicated 
potential capability which might be used to counter threats 
such as 122-millimeter rockets and cruise missiles. The 
conferees encourage the Secretary of the Army to include this 
program in the fiscal year 1997 budget request, and, if 
warranted, consider a reprogramming request to provide funding 
for DAGGR in fiscal year 1996.
Army echelon above corps communication
      The budget request included $5.9 million for Army echelon 
above corps communications.
      The House bill would authorize the budget request.
      The Senate amendment included a provision (sec. 226) that 
would provide an increase of $40.0 million to procure 
additional communications equipment for the Army's echelons 
above corps.
      The Senate recedes.
      The conferees agree to authorize the increase of $40.0 
million for the procurement of additional communications 
equipment for the Army's echelons above corps.
Sense of the Senate on the Director of Operational Test and Evaluation
      The Senate amendment contained a provision (sec. 242) 
that would express a sense of the Senate that would discourage 
any attempt to diminish or eliminate the Office of the Director 
of Operational Test and Evaluation or its functions.
      The House bill contained no similar provision.
      The Senate recedes.
Ballistic missile defense technology center
      The Senate amendment contained a provision (sec. 243) 
that would establish a ballistic missile defense technology 
center within the Space and Strategic Defense Command of the 
Army.
      The House bill contained no similar provision.
      The Senate recedes.

                  Title III--Operation and Maintenance

Overview
      The budget request for fiscal year 1996 contained an 
authorization of $91,634.4 million for Operation and 
Maintenance in the Department of Defense and $1,852.9 for 
Working Capital Fund Accounts in fiscal year 1996. The House 
bill would authorize $94,420.2 million for Operation and 
Maintenance and $2,452.9 for Working Capital Fund Accounts. The 
Senate amendment would authorize $91,408.8 million for 
Operation and Maintenance and $1,962.9 for Working Capital Fund 
Accounts. The conferees recommended an authorization of 
$92,616.4 million for Operation and Maintenance and $1,902.9 
for Working Capital Fund Accounts for fiscal year 1996. Unless 
noted explicitly in the statement of managers, all changes are 
made without prejudice.


PACER COIN

      The budget request included $5.5 million in procurement 
and $19.5 million in operations and maintenance funding for the 
PACER COIN aircraft.
      The House bill would deny all funding, effectively 
terminating this program.
      The Senate amendment would authorize the Department's 
request.
      The House recedes.
      The conferees agree to authorize the budget request. 
Nevertheless, the conferees have serious reservations about 
whether the PACER COIN program, within its current mission 
tasking, provides such unique intelligence collection as to 
justify continued spending of limited resources on this 
mission. However, the conferees agree that:
            (1) terminating the PACER COIN program immediately 
        this fiscal year would place unacceptable stresses on 
        the personnel system;
            (2) the Department has already obligated fiscal 
        year 1996 funds for this mission; and
            (3) the Air Force would need funds to terminate the 
        program and provide proper aircraft/equipment 
        disposition.
      The conferees direct the Department to determine whether 
or not the PACER COIN aircraft could be used in a dual use 
role. The conferees believe that the analysis should answer 
several questions, including at least the following:
            (1) Could the aircraft be used, without certain 
        PACER COIN systems, in an air drop role?
            (2) Could the aircraft be configured to 
        simultaneously perform the PACER COIN mission and carry 
        the SENIOR SCOUT tactical intelligence system?
            (3) What alternatives are there for filling the 
        requirements of the regional Commander in Chief if the 
        PACER COIN program is terminated?
            (4) What would be the effects of failing to meet 
        the requirements of the regional Commander in Chief for 
        the PACER COIN capability?
The conferees direct the Secretary of Defense to report to the 
congressional defense and intelligence committees on the 
results of this analysis by May 1, 1995.
      If the Department determines that dual use of the 
aircraft is not practical, the conferees direct the Department 
to determine proper disposition of the PACER COIN mission 
aircraft (e.g. permanent aircraft storage or deconfiguration 
from the current mission configuration).
      If the Department determines that dual use of the 
aircraft is practical, and that the operational unit can 
fulfill multiple missions, the conferees direct the department 
to:
            (1) maintain the PACER COIN aircraft in a 
        reconfigurable state for use in those multiple roles 
        and retain the PACER COIN mission equipment for future 
        contingency or national disaster mission uses; and
            (2) begin training for those appropriate new 
        missions, including air drop, as soon as possible to 
        ensure a smooth transition from the PACER COIN-unique 
        mission.

                       items of special interest

DBOF transfers

      The conferees reduced the civilian personnel funding 
request by $226.0 million. Of this amount, the conferees expect 
that $96.0 million will be realized from projected savings from 
Defense Business Operations Fund (DBOF) activities. The 
conferees direct that $96.0 million be transferred from the 
DBOF to the accounts from which the reductions are taken.
      The conferees also reduced the operation and maintenance 
(O&M) accounts of the services by $180.0 million, in 
anticipation of savings from efficiencies in the management of 
Department of Defense inventories. The conferees direct that 
$180.0 million be transferred from the DBOF to the following 
O&M accounts: Army, $60.0 million; Navy, $60.0 million; Air 
Force, $60.0 million.

Restriction on devolving the Defense Environmental Restoration Account 
        to the military services

      In a memorandum dated May 3, 1995, the Deputy Secretary 
of Defense announced a proposal to devolve the Defense 
Environmental Restoration Account (DERA), a single transfer 
account administered by the Department of Defense, to four 
separate transfer accounts administered by the individual 
military services. The execution of the Deputy Secretary of 
Defense's proposal would require modification of the DERA 
statutory framework.
      The conferees are concerned the devolution of DERA would 
impede congressional oversight of the management and use of 
funds authorized for and appropriated to the account. In 
relation to devolvement, the conferees desire a thorough 
description of the means by which the Department of Defense 
would ensure consistent funding and accountability for 
environmental restoration activities. Moreover, the Department 
of Defense needs to identify the monetary savings and 
administrative efficiencies associated with DERA devolvement. 
The Department of Defense also must specify funding and 
staffing reductions for the office of the Deputy Under 
Secretary of Defense for Environmental Security that would 
result from DERA devolution.
      The conferees agree that, in the event that the 
Department of Defense intends to pursue legislation to 
authorize devolvement for fiscal year 1997, the Secretary of 
Defense must submit a report to Congress, no later than March 
31, 1996. The report should provide full justification for DERA 
devolvement and address the matters outlined above. In the 
absence of the requested information this year, the conferees 
decline to authorize a change to the existing statutory scheme 
for DERA at this time.

National defense sealift fund

                                summary

      The budget request included $974.2 million in the 
national defense sealift fund (NDSF) for the procurement of two 
new strategic sealift ships, operations and maintenance of the 
national defense reserve fleet (NDRF), acquisition and 
modification of additional ships for the ready reserve force 
(RRF) of the NDRF, and research and development of mid-term 
sealift ship technologies.
      The House bill would authorize $974.2 million for the 
NDSF, the budget request.
      The Senate amendment would authorize $1.08 billion for 
the NDSF, an increase of $110.0 million. This increase would be 
for the purpose of purchasing and converting one additional 
ship for enhancement of the Marine Corps' maritime 
prepositioning ship (MPS) program.
      The conferees agree to authorize $1.02 billion for the 
NDSF, an increase of $50.0 million. Items of special interest 
are discussed in the following sections.

                       national defense features

      The House bill did not authorize the $70.0 million 
included in the NDSF budget request for the procurement and 
modification of additional roll-on/roll-off (RO/RO) ships for 
the RRF. Instead, it would authorize $70.0 million for the 
procurement and installation of national defense features (NDF) 
on commercial vehicle carriers built in and documented under 
the laws of the United States, as required by section 2218, 
title 10, United States Code.
      The Senate amendment dealt with the $70.0 million 
included in the NDSF budget request for the procurement and 
modification of RRF RO/RO vessels as follows:
            (1) $20.0 million to modify RO/RO vessels purchased 
        in fiscal year 1995; and
            (2) $50.0 million to procure and install defense 
        features on commercial RO/RO vessels that would be 
        built in United States shipyards.
      The conferees agree that, of the amount authorized for 
the NDSF, $50.0 million shall be for the procurement and 
installation of NDF and $20.0 million shall be for modification 
of the RRF RO/RO vessels purchased in fiscal year 1995. The 
conferees also restrict the obligation of the $20.0 million 
authorized for the modification of RRF RO/RO vessels until 30 
days after the Secretary of Defense has notified the 
congressional defense committees that a NDF program has been 
formally established and that at least $50.0 million has been 
made available to fund it.

                maritime prepositioning ship enhancement

      The budget request of $974.2 million for the national 
defense sealift fund (NDSF) did not include funding for any 
enhancements to the Marine Corps' maritime prepositioning 
force.
      In order to continue a program initiated last year, the 
Senate amendment would authorize $110.0 million above the NDSF 
budget request to purchase and convert an additional MPS ship.
      The House bill would authorize the budget request. It did 
not address the issue of MPS enhancement.
      The conferees would not authorize funds for MPS 
enhancement in the conference agreement. However, the conferees 
reaffirm their strong support for the MPS enhancement program. 
This program will enable the Marine Corps to add additional 
tanks, an expeditionary airfield, additional Navy construction 
battalion equipment, a fleet hospital, and other supplies to 
each MPS squadron, to better sustain the Marine Corps as an 
expeditionary force.
      The conferees believe that there are substantial benefits 
inherent in an MPS enhancement program. Consequently, the 
conferees are troubled by the department's failure to include 
funding for a second MPS enhancement ship in the fiscal year 
1996 budget request, and by the lack of progress in acquiring 
and converting the MPS enhancement ship authorized and 
appropriated in fiscal year 1995.
      The conferees note, however, that the Navy appears to 
have made some recent progress in developing a well-defined 
program. In view of the above, the conferees strongly encourage 
the Secretary of Defense to accelerate the pace at which 
additional sealift capability is acquired (to include funding 
for a second MPS enhancement ship in fiscal year 1997). 
However, the conferees expect the Secretary to adhere to the 
prepositioning, surge, and RRF priorities established by the 
Mobility Requirements Study (MRS) and validated by the MRS 
Bottom Up Review Update.
      The conferees also expect the Navy to aggressively pursue 
all possible procurement options, including multi-ship and 
commercial procurement, to achieve the cost savings associated 
with the acquisition, conversion, and delivery of MPS 
enhancement vessels. The Secretary of Defense is directed to 
report on the progress made in meeting this goal when he 
submits the fiscal year 1997 budget request.

                 advanced submarine technology research

      The conferees agree that, of the amount appropriated for 
fiscal year 1996 for the NDSF, $50.0 million shall be available 
only for the Director of the Advanced Research Projects Agency 
for advanced submarine technology activities.

National Security Agency oversight

      The budget request included $5.0 million in operations 
and maintenance (O&M) funds and 82 new personnel billets for 
National Security Agency (NSA) oversight of tactical signals 
intelligence (SIGINT) system development.
      The House bill would not authorize the $5.0 million O&M 
request.
      The Senate amendment would authorize the budget request.
      The conferees question the necessity for 82 persons to 
perform a function that could be significantly facilitated by 
automation and improved electronic connectivity, but recognize 
both the importance of the program and the commitment of the 
Deputy Secretary of Defense and the Director of NSA to this 
effort. Accordingly, the conferees agree to authorize the 
budget request, but direct that the 82 billets be transferred 
from the Consolidated Cryptological Program (CCP) to the 
Defense Cryptological Program (DCP), resulting in no net gain 
in United States SIGINT System activities. The conferees 
understand that this billet transfer may temporarily force NSA 
to exceed its personnel ceilings. The conferees agree to 
authorize NSA to remain above its personnel ceiling through 
fiscal year 1997 for this purpose, but expect that, as of 
September 30, 1997, NSA will meet its congressionally mandated 
17.5 percent reduction target. The conferees also urge NSA to 
review the requirements for each of these billets for validity 
and consistency.

Department of Defense next generation weather radar-doppler

      The Department of the Air Force operates 21 next 
generation weather radar-doppler (NEXRAD) weather radar 
equipment in CONUS that primarily function to protect military 
locations. Additionally, Department of Defense (DOD) radar 
provides supplementary data to the National Weather Service 
(NWS) and its national radar network.
      DOD NEXRADs are maintained at operational standards that 
meet military requirements. Due to increasing NWS reliance on 
the DOD NEXRADS for primary and back-up coverage, efforts have 
been made to increase the reliability of the DOD radar to meet 
NWS operating standards.
      The conferees direct the Secretary of the Air Force to 
report by March 31, 1996, on the measures needed to conform the 
operation of the NEXRADS to the NWS operating standards. The 
report should address any resource requirements, including 
personnel and funds.

Reengineering household goods moves

      The conferees commend the Department of Defense for 
initiating efforts to incorporate efficient business practices 
in its household goods moving operations. The objective of 
these efforts should be to procure commercial services at the 
lowest possible cost while ensuring service members and their 
families receive the best possible service.
      Current procurement practices are cumbersome and 
inefficient, resulting in clearly unacceptable costs for both 
DOD and the moving industry. It is not apparent that the time 
and expense associated with processing redundant paperwork and 
administering a government-unique system are necessary to 
ensure a level of service for DOD customers that meets the 
industry standard.
      Further, current practices are structured in such a way 
that service members and their families are subjected to 
unnecessary administrative burdens. Claims procedures and the 
evaluation system are outdated and seemingly disconnected from 
the concept of quality control, and can be frustrating to 
customers. Because military relocations account for a 
substantial share of moving industry work, DOD should be able 
to implement simple, cost-effective procedures which 
simultaneously assure first class service for customers.
      However, current DOD practices do not reflect best 
industry practices, such that the DOD operation should be 
reengineered, rather than simply reorganized. The conferees 
direct the Secretary of Defense to initiate a pilot program to 
reengineer household goods moves. The Secretary should direct 
the incorporation of commercial practices, and report on the 
program not later than February 15, 1996, prior to 
implementation of any element of the pilot program. The report 
should be accompanied by comments from the industry.
      The Secretary may not implement any element of the pilot 
program that could adversely affect small businesses, including 
extension or application of Federal Acquisition Regulations 
into this matter, until 90 days after the submission of the 
report.

                         Legislative Provisions

                     legislative provisions adopted

              Subtitle A--Authorization of Appropriations

Armed Forces Retirement Home (sec. 303)

      The House bill contained a provision (sec. 303) that 
would authorize an appropriation from the Armed Forces 
Retirement Home (AFRH) Trust Fund for operation of the AFRH in 
fiscal year 1996.
      The Senate amendment contained a provision (sec. 303) 
that would authorize an identical appropriation from the trust 
fund, and authorize a new appropriation of $45.0 million to the 
trust fund. The recommendation for this new appropriation 
directly to the trust fund would address the problem of its 
potential insolvency due to unanticipated decreases in the 
long-established funding stream approved by Congress for 
operation of the AFRH.
      The Senate recedes.
      Congress established a funding program whereby the AFRH 
would be self-sustaining, and not dependent on public funds. 
The U.S. Soldiers' and Airmen's Home in Washington, DC, has 
operated successfully according to this program since its 
inception in 1851. The U.S. Naval Home (established in 1834 and 
located since 1976 in Gulfport, MS) had been funded 
differently, relying on public funds from 1935 until 1991, when 
both homes were incorporated into the AFRH (Armed Forces 
Retirement Home Act of 1991; P.L. 101-510). The Act brought 
both homes under the unified management of the Armed Forces 
Retirement Home Board and merged the trust funds of the two 
homes.
      Subsequent to incorporation, the annual operating costs 
for both homes of the AFRH have been authorized by Congress, to 
be drawn (appropriated) from a single trust fund. Since the 
funding program provided that interest from the trust fund, 
fines and forfeitures, and a monthly assessment from the pay of 
active duty enlisted service members and warrant officers would 
maintain the solvency of the trust fund, no appropriation 
outside the fund was envisioned to be necessary.
      However, Congress did not anticipate the magnitude of 
reductions in the armed forces prompted by the end of the Cold 
War. These reductions caused a decrease in the funding stream 
as the income derived from assessments decreased. The high 
quality of the force resulted in fewer disciplinary problems, 
which in turn resulted in less income from fines and 
forfeitures. This is significant because fines and forfeitures 
account for more than half the income.
      The trust fund now has a negative cash flow because more 
money is required for operation of the AFRH than is available 
from income. The corpus of the trust fund is being depleted, 
and the conferees recognize the need to implement changes to 
prevent insolvency. The conferees believe it would be easier, 
preferable, and more advantageous to implement corrective 
measures in the next few years, rather than wait for the 
problem to become much more serious.
      The conferees note that Congress addressed the funding 
problem in the National Defense Authorization Act for Fiscal 
Year 1995 by providing authority for an increase in the monthly 
assessment. The 1995 provision also established a schedule of 
increases for resident fees and required a comprehensive study 
by the Board on funding alternatives for the AFRH. However, the 
study will not be completed until December 1995, and the 
Department of Defense has declined to increase the assessment 
prior to completion of the study. The conferees note that an 
increase in the assessment, from 50 cents to one dollar per 
month, may not of itself resolve the cash flow problem. A 
combination of efficiencies and funding program changes may be 
appropriate.
      The conferees strongly support the fine work of the 
Board, and agree to wait for the outcome of the study in order 
not to restrict the consideration of efficiencies. The 
conferees encourage the Secretary of Defense and the Board to 
continue their efforts to examine alternative methods of 
meeting the long-term financial requirements of the AFRH, while 
maintaining high quality service for the residents.
Transfer from National Defense Stockpile Transaction Fund (sec. 304)
      The Senate amendment contained a provision (sec. 304) 
that would authorize the transfer of $150.0 million from the 
National Defense Stockpile Transition fund to the operation and 
maintenance accounts of the services.
      The House bill contained no similar provision.
      The House recedes.
Civil Air Patrol (sec. 305)
      The Senate amendment contained a provision (sec. 305) 
that would reduce the level of Department of Defense support to 
the Civil Air Patrol (CAP) by $2.9 million from the budget 
request of $27.5 million.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      This reduction would realize savings by accelerating a 
CAP reorganization in which many of the functions performed by 
Air Force personnel in the past would then be performed by 
employees of the CAP. This reorganization, which was originally 
planned to be completed in fiscal year 1997, will now be 
completed during fiscal year 1996.

                   Subtitle B--Depot-Level Activities

Policy regarding performance of depot-level maintenance and repair for 
        the Department of Defense (sec. 311)
      The House bill contained a provision (sec. 395) that 
would amend current law to establish the importance to national 
security of maintaining a core depot-level maintenance and 
repair capability within Department of Defense (DOD) 
facilities. The provision would address core work 
determinations, interservicing, competition, and an exclusion 
from workload limitations for large individual maintenance 
projects. It would also repeal two limitations on the 
performance of depot-level work (10 U.S.C. 2466 and 2469), 
effective December 31, 1996.
      The Senate amendment contained a provision (sec. 311) 
that would require the Secretary of Defense to develop a 
comprehensive policy on the performance of depot-level 
maintenance and repair, and submit a report on the policy to 
the congressional defense committees by March 31, 1996. The 
provision would condition the repeal of the two current 
limitations on congressional approval of the recommended 
policy.
      The House recedes with an amendment that would clarify 
both the content of the policy and considerations to be made by 
the Secretary. The amendment would also affirm that it is the 
sense of Congress that DOD must articulate core workload 
requirements as a necessary first step toward developing a 
policy.
      The conferees believe that it would be extremely 
difficult for Congress to approve a policy that does not 
provide for the performance of core depot-level workload in 
public facilities.
      Although the conferees do not wish to prescribe more than 
a broad outline of the areas to be addressed by the Secretary, 
the conferees believe it is useful to direct the Secretary to 
consider numerous matters in developing the policy, and to 
report on items of interest.
      The conferees believe it is both preferable and entirely 
possible for DOD to develop an acceptable, comprehensive policy 
that will serve the best interests of national security. The 
conferees also believe that such a policy could achieve 
efficiencies, and result in resolving the constant debate over 
how to apportion work between the public and private sectors.
      With respect to the exclusion for large individual 
maintenance projects contained in the House provision, the 
conferees note that certain projects may account for a large 
share of a military department's maintenance and repair budget. 
This is the case with respect to complex overhauls of naval 
vessels, particularly nuclear-powered aircraft carriers, whose 
overhaul and refueling can absorb a large percentage of the 
Navy's maintenance and repair budget in a given fiscal year. 
Amounts expended for such large projects could, if counted 
against the limitation prescribed under current law (10 U.S.C. 
2466), affect the application of the formula for the 
apportionment of work between the public and private sectors.
      The conferees note that the impact of large maintenance 
projects could have unintended consequences on the application 
of section 2466. Until the workload limitations are repealed, 
the conferees direct the Secretary of the Navy to monitor the 
assignment of large individual maintenance projects closely and 
continue to administer depot maintenance programs to avoid 
unintended imbalances in workload distribution insofar as 
practicable.
Management of depot employees (sec. 312)
      The House bill contained a provision (sec. 332) that 
would prohibit the management of depot employees by endstrength 
constraints.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Extension of authority for aviation depots and naval shipyards to 
        engage in defense-related production and services (sec. 313)
      The Senate amendment contained a provision (sec. 312) 
that would extend through fiscal year 1996 the authority 
provided by section 1425 of the National Defense Authorization 
Act of 1991, as amended, for naval shipyards and aviation 
depots of all the services to bid on defense-related production 
and services.
      The House bill contained no similar provision.
      The House recedes.
Modification of notification requirement regarding use of core 
        logistics functions waiver (sec. 314)
      The House bill contained a provision (sec. 374) that 
would modify section 2464(b) to title 10, United States Code, 
concerning notification to Congress regarding the effective 
date of the subject waiver.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                  Subtitle C--Environmental Provisions

Revision of requirements for agreements for services under the defense 
        environmental restoration program (sec. 321)
      The Senate amendment contained a provision (sec. 321) 
that would amend section 2701(d) of title 10, United States 
Code, to ensure Department of Defense accountability for 
reimbursements provided to states or territories. The Senate 
amendment would limit the basis for state reimbursement. First, 
states or territories participating in agreements under the 
defense environmental restoration program would only receive 
reimbursement for providing technical and scientific services. 
Second, the provision would require the submission of a 
reprogramming request for amounts in excess of $5.0 million.
      The House bill contained no similar provision.
      The House recedes with an amendment that would increase 
the funding authorization to $10.0 million.
Addition of amounts creditable to the defense environmental remediation 
        account (sec. 322)
      The House bill contained a provision (sec. 322) that 
would provide for transfer account credit of amounts recovered 
under section 107 of the Comprehensive Environmental Response, 
Compensation and Liability Act of 1980 (CERCLA) (42 U.S.C. 
9601, et seq.) or from other reimbursements to the Department 
of Defense for environmental restoration activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Sense of Congress on use of defense environmental restoration account 
        (sec. 323)
      The House bill contained a provision (sec. 326) that 
would express the sense of Congress that by the end of fiscal 
year 1997 no more than 20 percent of the annual funding for the 
Defense Environmental Restoration Account should be spent for 
administration, support, studies, and investigations.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would establish 
a goal that by the end of fiscal year 1997 no more than 20 
percent of the annual funding for the Defense Environmental 
Restoration Account should be spent for administration, 
support, studies, and investigations. The amendment would also 
require the Department of Defense to submit a report to 
Congress by April 1, 1996. The report would specify issues 
related to attaining the 20 percent goal.
Revision of authorities relating to restoration advisory boards (sec. 
        324)
      The Senate amendment contained a provision (sec. 323) 
that would amend section 2705 of title 10, United States Code, 
which authorizes establishment of restoration advisory boards 
(RABs) to assist the Department of Defense with environmental 
restoration activities at military installations. Section 2705 
also provides a funding framework for local community members 
of RABs and existing technical review committees.
      About 200 Restoration Advisory Boards have been 
established at operational and closing installations and 
formerly used defense sites. Under current law, the RAB funding 
sources for local community member participation and for 
technical assistance are the Defense Environmental Restoration 
Account (DERA) and the Base Realignment and Closure Account 
(BRAC). Section 2705(e)(3)(B) provides a $7.5 million limit on 
the use of DERA and BRAC funds to pay for RAB technical 
assistance and community participation in fiscal year 1995. 
Under section 2705(d)(3), routine administrative expenses for 
RABs may be paid out of funds available for the operation and 
maintenance of an installation, without any limit on the amount 
of funds that may be expended for that purpose.
      The Senate amendment would amend section 2705 to limit 
funding sources to BRAC and DERA, not to exceed $4.0 million in 
fiscal year 1996. Funds would be made available only for 
routine administrative expenses and technical assistance. The 
installation commander could obtain technical assistance for a 
RAB to interpret scientific and engineering issues related to 
the environmental restoration activities at the installation 
where the RAB is functioning.
      The House bill contained no similar provision.
      The House recedes with an amendment that would increase 
the funding authorization to $6.0 million. As part of the 
amendment, the conferees have included language that would make 
funds unavailable after September 15, 1996, unless the 
Secretary of Defense publishes proposed final or interim final 
regulations. Based on section 2705(d)(2) of title 10, United 
States Code, the conferees anticipate that the Department would 
already have made some progress in the promulgation of 
regulations.
      Funding for private sector sources of technical 
assistance would be contingent on the following: (1) a 
demonstration that the existing technical resources of the 
Federal, state, and local agencies responsible for overseeing 
environmental restoration at an installation could not serve 
the objective for which technical assistance is requested; or 
(2) outside assistance is likely to contribute to the 
efficiency, effectiveness, or timeliness of environmental 
restoration at an installation; and (3) outside assistance is 
likely to contribute to community acceptance of environmental 
restoration activities at an installation.
      The conferees intend that the funds authorized pursuant 
to this section would be the primary funding source for 
technical assistance and administrative expenses associated 
with RABs. The conferees strongly encourage the Secretary of 
Defense to ensure that funds authorized for RABs are expended 
in a manner that is consistent with obtaining technical 
assistance and with payment of administrative expenses, and is 
dispensed in accordance with the funding mechanism established 
in this section. The RAB program should not serve as a drain on 
the Superfund.
Discharge from vessels of the Armed Forces (sec. 325)
      The Senate amendment contained a provision (sec. 322) 
that would address incidental discharges from vessels of the 
armed forces through the development of uniform national 
discharge standards. The Federal Water pollution Control Act, 
33 U.S.C. 1251 et seq., and implementing regulations currently 
exempt incidental vessel discharges from permitting 
requirements. Incidental discharges remain subject to varying 
state regulation. The lack of uniformity has presented 
operational problems for the Navy.
      The Senate amendment is modeled after section 312 of the 
Federal Water Pollution Control Act, 33 U.S.C. 1322, which 
establishes uniform national discharge standards for sewage 
discharges from all vessels. The standards provision would 
extend this model to regulate non-sewage incidental discharges 
from vessels of the armed forces.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Operation of commissary system (sec. 331)
      The House bill contained a provision (sec. 341) that 
would revise the operation of the commissary store system, 
allow contracts with other agencies, and revise payments to 
vendor agents.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
the revision of payments to vendor agents.
      The conferees are concerned about the high cost of the 
Defense Finance and Accounting Service procedures to process 
the 1.5 million annual commissary invoices. The conferees 
believe that innovative practices need to be pursued to reduce 
this burden. The administrative costs consume funding that 
could otherwise be used to improve patron services or reduce 
costs.
      The conferees direct the Secretary of Defense to conduct 
a review of innovative practices to reduce this cost. Included 
in this review should be an examination of the relationship 
between the current distribution and invoicing practices. The 
Secretary of Defense should report to the Senate Committee on 
Armed Services and the House Committee on National Security by 
February 15, 1996 on the recommended actions, if any, to reduce 
these costs and how any savings will be used.
      Additionally, the conferees note that the Defense 
Commissary Information System and the Point-of-Sale 
Modernization programs are essentially off-the-shelf commercial 
grocery systems designed to improve patron service and increase 
efficiency of commissary operations. As such, the conferees 
believe the Secretary of Defense should get these systems on 
line and operating with the minimum of review required to 
ensure interface with other government data systems and 
compliance with legislation and regulations essential to 
protect the interests of the government.
Limited release of commissary store sales information to manufacturers, 
        distributors, and other vendors doing business with Defense 
        Commissary Agency (sec. 332)
      The House bill contained a provision (sec. 343) that 
would amend the procedures for the release of commissary stores 
sales information.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Economical distribution of distilled spirits by nonappropriated fund 
        instrumentalities (sec. 333)
      The House bill contained a provision (sec. 344) that 
would amend the procedures for the determination of the most 
economical distribution of distilled spirits.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Transportation by commissaries and exchanges to overseas locations 
        (sec. 334)
      The House bill contained a provision (sec. 345) that 
would allow officials responsible for the operation of 
commissaries and military exchanges the authority to negotiate 
directly with private carriers for the most cost-effective 
transportation of supplies by sea, without relying on the 
Military Sealift Command or the Military Traffic Management 
Command.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Demonstration project for uniform funding of morale, welfare, and 
        recreation activities at certain military installations (sec. 
        335)
      The House bill contained a provision (sec. 346) that 
would require the Secretary of Defense to conduct a 
demonstration program at six military installations under which 
funds appropriated for the support of morale, welfare, and 
recreation programs at the installations are combined with 
nonappropriated funds available for these programs and treated 
as nonappropriated funds.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment which would extend 
the test to two years.

Operation of combined exchange and commissary stores (sec. 336)

      The House bill contained a provision (sec. 347) that 
would permit the continued operation of the base exchange mart 
at Fort Worth Naval Air Station, Texas, and would allow for the 
expansion of the Base Exchange Mart Program.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
      The conferees approve this expansion with the 
understanding that they do not intend that exchange marts 
replace viable commissaries. When a commissary is identified 
for closure, the exchange system will be permitted to conduct a 
market survey to determine the viability of an exchange mart in 
the closing commissary facility. The conferees do not expect 
that an exchange mart would be in direct competition with a 
commissary operating in close proximity to a proposed exchange 
mart.
      The conferees expect that exchange marts will operate in 
a manner in which nonappropriated funds are not required to 
sustain their operation. The conferees expect that every effort 
will be made to operate the exchange marts in a manner which 
requires only a minimal amount of appropriated fund support.

Deferred payment programs of military exchanges (sec. 337)

      The House bill contained a provision (sec. 348) that 
would require the Secretary of Defense to establish a uniform 
exchange credit program that could use commercial banking 
institutions to fund and operate the deferred payment programs 
of the Army and Air Force Exchange Service and the Navy 
Exchange Service.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would clarify 
the provision by ensuring that any proposal be competitively 
awarded and that prior to entering into any commercial program 
the Secretary determine that it is in the best interests of the 
exchange systems.

Availability of funds to offset expenses incurred by Army and Air Force 
        Exchange Service on account of troop reductions in Europe (sec. 
        338)

      The House bill contained a provision (sec. 349) that 
would require that the Secretary of Defense transfer not more 
than $70 million to the Army and Air Force Exchange Service to 
offset expenses incurred by the Army and Air Force Exchange 
Service on account of reductions in the number of military 
personnel in Europe.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
      In order to avoid disruption of operations associated 
with currency fluctuations and, in recognition of the unique 
direct appropriation nature of commissaries as an entity of the 
Defense Business Operations Fund, the conferees direct that the 
military exchanges, other nonappropriated fund 
instrumentalities, and commissaries be permitted to be included 
in the Department of Defense foreign currency fluctuation fund.
      Associated with the drawdown in Europe was an initiative 
to transfer operations of the Stars and Stripes Bookstores to 
the military exchanges. This transfer has a residual impact 
upon certain employees. The conferees direct that the Army and 
Air Force Exchange Service accept responsibility for resolving 
the issue of employment, severance, and back pay for the 15 
local national employees formerly employed by the Stars and 
Stripes. The conferees expect that the Army and Air Force 
Exchange Service can, in conjunction with the Army and Air 
Force headquarters in Europe, resolve the current job action 
concerning these 15 local national employees using funds 
provided in this section.

Study regarding improving efficiencies in operation of military 
        exchanges and other morale, welfare, and recreation activities 
        and commissary stores (sec. 339)

      The House bill contained a provision (sec. 350) that 
would require the Secretary of Defense to conduct a study and 
submit a report to Congress regarding the manner in which 
greater efficiencies can be achieved in the operation of 
military exchanges, commissary stores, and other morale, 
welfare, and recreation activities.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees agree with the findings and scope of the 
study called for in the House report (H. Rept 104-131). The 
conferees believe that the Department of Defense should seek 
opportunities to reduce labor costs in resale activities and to 
reduce excessive overhead. Additionally, the conferees agree 
that significant economies and revenue potential can be 
realized in the area of management and oversight of overseas 
slot machine operations. The conferees direct the Secretary of 
Defense consider and, if appropriate, submit a plan to have one 
service serve as the executive agent for the consolidated 
management and operation of this function.

Repeal of requirement to convert ships' stores to nonappropriated fund 
        instrumentalities (sec. 340)

      The House bill contained a provision (sec. 351) that 
would extend, to December 31, 1996, the deadline for the 
conversion of all Navy ships' stores to operate as 
nonappropriated fund activities.
      The Senate amendment contained a provision (sec. 373) 
that would repeal section 371 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160) 
requiring the Navy to convert ships' stores operations to a 
Navy Exchange System agency.
      The House recedes with an amendment that would require 
the Inspector General of the Department of Defense to complete 
a review of the Navy Audit Agency report regarding the 
conversion of the Ships Stores pursuant to section 374 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337).

Disposition of excess morale, welfare, and recreation (MWR) funds (sec. 
        341)

      The Senate amendment contained a provision (sec. 371) 
that would amend section 373 of the National Defense 
Authorization Act for Fiscal Year 1995 to permit the Marine 
Corps to retain the MWR funds transferred from Marine Corps 
installations.
      The House bill contained no similar provision.
      The House recedes.

Clarification of entitlement to use of morale, welfare, and recreation 
        facilities by members of Reserve components and dependents 
        (sec. 342)

      The Senate amendment contained a provision (sec. 633) 
that would amend section 1065 of title 10, United States Code, 
to give members of the retired reserve who would be eligible 
for retired pay but for the fact that they are under 60 years 
of age the same priority of use of morale, welfare, and 
recreation facilities of the military services as members who 
retired after active duty careers.
      The House bill contained no similar provision.
      The House recedes.

     Subtitle E--Performance of Functions by Private-Sector Sources

Competitive procurement of printing and duplication services (sec. 351)

      The House bill contained a provision (sec. 359) that 
would direct the Defense Printing Service to procure at least 
70 percent of printing and duplication work competitively.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would exempt 
classified printing and duplication work from this calculation.

Direct vendor delivery system for consumable inventory items of 
        Department of Defense (sec. 352)

      The House bill contained a provision (sec. 360) that 
would require the Department of Defense (DOD) to arrange for 
delivery of consumable inventory items directly from vendors to 
military installations in the United States. Complete 
implementation of this system would be required by September 
30, 1997.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
DOD to use direct vendor delivery of consumable inventory items 
whenever practicable.

Payroll, finance, and accounting functions of the Department of Defense 
        (sec. 353)

      The House bill contained a provision (sec. 362) that 
would require the Secretary of Defense to submit a plan to 
Congress for the privatization of the payroll functions for 
civilian employees of the Department of Defense and to 
implement the plan not later than October 1, 1996.
      The House bill contained a provision (sec. 368) that 
would require the Secretary of Defense to conduct a pilot 
program to test and evaluate the cost savings and efficiencies 
of private operation of accounting and payroll functions of 
nonappropriated fund instrumentalities of the Department of 
Defense.
      The Senate amendment contained a provision (sec. 352) 
that would require the department of Defense to conduct a 
review of the need for further expansion of Defense Finance and 
Accounting Service (DFAS) operating locations, and to report to 
the appropriate committees of the Congress prior to 
establishing any new DFAS operating locations.
      The House recedes with an amendment that would combine 
and clarify the three provisions.

Demonstration program to identify overpayments made to vendors (sec. 
        354)

      The House bill contained a provision (sec. 363) that 
would require the Secretary of Defense to conduct a 
demonstration program at the Defense Personnel Support Center, 
Philadelphia, Pennsylvania, to evaluate the feasibility of 
using private contractors to audit accounting and procurement 
records of the Department of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Pilot program on private operation of defense dependents' schools (sec. 
        355)

      The House bill contained a provision (sec. 364) that 
would allow the Secretary of Defense to conduct a pilot program 
to assess the feasibility of using private contractors to 
operate overseas dependents' schools and to report the results 
of the pilot program to Congress.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Program for improved travel process for the Department of Defense (sec. 
        356)

      The House bill contained a provision (sec. 365) that 
would require the Secretary of Defense to conduct a pilot 
program including two prototype tests of commercial travel 
applications to improve management of the Department of Defense 
Travel System.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would direct 
the Secretary to conduct a two-year test at a minimum of three 
sites and a maximum of six sites, and to report to the Senate 
Committee on Armed Services and the House Committee on National 
Security at the conclusion of the first year.
      The conferees do not intend this provision to be viewed 
as authority for the Secretary of Defense to circumvent the 
requirement for civilians to use adequate government quarters 
where they are available.

Increased reliance on private-sector sources for commercial products 
        and services (sec. 357)

      The House bill contained a provision (sec. 367) that 
would require the Secretary of Defense to endeavor to obtain 
products and services from the private sector. The provision 
would require the Secretary of Defense to describe functions 
that can be performed by the private sector and specify 
impediments to outsourcing.
      The Senate amendment contained a provision (sec. 386) 
that would require the Secretary to report on the use of 
private sector contractors to perform functions not essential 
to the warfighting mission of the Department of Defense.
      The Senate recedes with an amendment.
      The conferees agree that DOD should make a maximum effort 
to rely upon the private sector for commercial functions 
whenever the same level of service can be obtained at a reduced 
cost to the government, and the national security does not 
require the activity to be retained in-house. The conferees 
note with approval the many steps the Department has already 
taken in this direction and encourage the Department to 
continue in its efforts. The conferees urge the Department to 
maintain close coordination with the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House regarding its efforts to downsize the federal 
government while placing greater reliance upon the private 
sector.

        Subtitle F--Miscellaneous Reviews, Studies, and Reports

Quarterly readiness reports (sec. 361)

      The House bill contained a provision (sec. 371) that 
would require the Secretary of Defense to report quarterly to 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives on the 
military readiness of the armed forces.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Restatement of requirement for semiannual reports to Congress on 
        transfers from high-priority readiness appropriations (sec. 
        362)

      The House bill contained a provision (sec. 373) that 
would amend section 361 of the National Defense Authorization 
Act for Fiscal Year 1995 in order to provide more detailed 
guidance on the report required.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment. The 
conferees are disappointed that the Department of Defense has 
not been sufficiently thorough in reporting on transfers from 
high-priority readiness appropriations and expect future 
reports to be more substantive.

Report regarding reduction of costs associated with contract management 
        oversight (sec. 363)

      The House bill contained a provision (sec. 376) that 
would require the Comptroller General to submit a report to 
Congress that would identify methods to reduce the cost of 
Department of Defense management and oversight of contracts in 
connection with major defense acquisition programs.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Reviews of management of inventory control points and Material 
        Management Standard System (sec. 364)

      The House bill contained a provision (sec. 391) that 
would direct the Secretary of Defense to conduct a review 
regarding consolidation of all inventory control points (ICP) 
under the Defense Logistics Agency. The provision would also 
prohibit implementation of the Materiel Management Standard 
System (MMSS) until submission of the Secretary's report to the 
Congressional defense committees.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to report by March 31, 1996, on the advisability 
of consolidating all ICP. The General Accounting Office would 
review the Secretary's report, and review the MMSS. The 
amendment would not impose a restriction on implementation of 
the MMSS.
Report on private performance of certain functions performed by 
        military aircraft (sec. 365)
      The Senate amendment contained a provision (sec. 390) 
that would require the Secretary of Defense to report on the 
feasibility of meeting requirements of VIP transportation, 
airlift, air cargo, in-flight refueling and other functions by 
using private contractors in lieu of military aircraft.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Strategy and report on automated information systems of Department of 
        Defense (sec. 366)
      The House bill contained a provision (sec. 375) that 
would prohibit the Secretary of Defense from obligating or 
expending amounts greater than $2.4 billion for the development 
and modernization of automated data processing programs pending 
a report by the Inspector General of the Department of Defense 
(DOD).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would remove 
the restriction on obligation of funds. The conferees believe 
that off-the-shelf automated information systems can improve 
DOD property management. This includes software, laminate 
barcode printers, barcode readers, and storage devices.
      The conferees also endorse the requirement contained in 
Title III of the House report (H. Rept. 104-131) in a paragraph 
of the Items of Special Interest section, entitled ``Off-the-
shelf systems.'' The conferees direct the Secretary to include 
in this report a discussion of functional processes that can 
use existing private sector technology.

                       Subtitle G--Other Matters

Codification of Defense Business Operations Fund (sec. 371)
      The House bill contained several provisions pertaining to 
the Defense Business Operations Fund (DBOF).
      Section 311 would modify DBOF by adding or precluding 
various DBOF activities. The provision would also require 
certain costs to be included in DBOF charges, and revise the 
capital purchase authority threshold from $50,000 to $15,000. 
Further, the provision would extend discretionary authority to 
the Secretary of Defense or the Secretary of a military 
department to purchase goods and services from non-DBOF 
activities, if they are available at a more competitive rate.
      Section 312 would require the Secretary of Defense to 
manage DBOF under the immediate authority of the Under 
Secretary of Defense (Comptroller). This would include central 
management of cash balances. The provision would also prohibit 
further expansion of the DBOF by adding new functions, 
activities, funds or accounts to the DBOF.
      Section 313 would require the inclusion of the costs of 
military personnel, who perform duty in industrial fund 
activities, in determining costs in DBOF activities. The 
provision would also terminate the practice of billing in 
advance for goods and services provided through the DBOF.
      The Senate amendment contained no similar provisions.
      The Senate recedes with a single amendment that would 
codify DBOF, but amend the activities listed in the House bill 
(sec. 312), not revise the capital purchase threshold, and 
retain the prohibition on further expansion.
      The amendment also would direct the Comptroller General 
of the United States to determine the advisability of managing 
DBOF at the Department of Defense (DOD) level. The conferees 
recommend the defense committees review this matter in fiscal 
year 1996 and consider the advisability of central management 
in light of the Comptroller General's report and improvements 
in the condition of the DBOF.
      The amendment would permit advance billing for compelling 
reasons, but require DOD to notify the defense committees of 
the Congress after September 30, 1996 in the event the 
aggregate total of advance billing exceeds $100.0 million 
subsequent to enactment of the National Defense Authorization 
Act for Fiscal Year 1996. Another report would be required each 
time the aggregate amount of advance billing increases by 
$100.0 million after the date of the preceding report.
      The conferees previously expressed support for the DOD 
plan to eliminate advance billing in fiscal year 1995 in the 
conference report accompanying the National Defense 
Authorization Act for Fiscal Year 1995. The practice of advance 
billing appears to cause DBOF customers to refrain from 
purchasing goods and services and it appears to promote 
confusion, rather than good business, at the unit or 
installation level.
      The conferees also support the effort to capture total 
costs in order to conduct business operations in accordance 
with generally accepted business practices. The conferees 
direct the Secretary of Defense to annotate the justification 
books accompanying subsequent budget submissions for DBOF 
activities, to reflect the total costs for both military and 
civilian personnel. These costs should include items such as 
salaries, benefits, and retirement plans. The conferees believe 
it is necessary for Congress to evaluate the consequences of 
including such costs in DBOF rates and pricing.
Clarification of services and property exchanged to benefit the 
        historical collection of the armed forces (sec. 372)
      The House bill contained a provision (sec. 321) that 
would clarify the law concerning the exchange of services and 
property for the benefit of the historical collection of the 
armed services.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Defense Business Management University (sec. 373)
      The House bill contained a provision (sec. 381) that 
would prohibit the use of funds for any lease with respect to 
the Center for Financial Management Education and Training of 
the Defense Business Management University (DBMU) if the lease 
would be treated as a capital lease for budgetary purposes.
      The Senate amendment contained a provision (sec. 351) 
that would require the Secretary of Defense to certify the need 
for the Center for Financial Management Education and Training 
of the DBMU, and report on Department of Defense financial 
management training, 90 days prior to obligating funds for a 
capital lease.
      The House recedes with an amendment that would require 
the Secretary of Defense to make the determination of the 
location of the center using a merit-based selection process 
and report to the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of 
Representatives on the details of this selection process at 
least 30 days prior to entering into a capital lease.

Permanent authority for use of proceeds from the sale of certain lost, 
        abandoned, or unclaimed property (sec. 374)

      The House bill contained a provision (sec. 388) that 
would provide permanent authority for a successful 
demonstration program for the disposal of certain personal 
property.
      The Senate amendment contained a provision (sec. 383) 
that would provide similar permanent authority, but would 
provide further authority to credit the operation and 
maintenance account of a relevant installation for the costs 
incurred to collect, transport, store, protect, or sell such 
property. Net proceeds from a sale would be covered into the 
Treasury. A mechanism for subsequent claims by an owner, heir, 
etc., would also be provided.
      The House recedes with a clarifying amendment.
Sale of military clothing and subsistence and other supplies of the 
        Navy and Marine Corps (sec. 375)
      The House bill contained a provision (sec. 393) that 
would provide to Navy and Marine Corps personnel the same 
authority that Army an Air Force personnel currently have to 
purchase replacement subsistence and other supplies.
      The Senate amendment contained a similar provision (sec. 
384).
      The House recedes with a technical amendment.
Personnel services and logistical support for certain activities held 
        on military installations (sec. 376)
      The House bill contained a provision (sec. 385) that 
would clarify the authority of the Secretary of Defense in 
regard to jamborees conducted by the Boy Scouts of America on 
military installations.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Retention of monetary awards (sec. 377)
      The House bill contained a provision (sec. 386) that 
would permit the Secretary of Defense to accept any monetary 
award for excellence, given to the Department of Defense by a 
nongovernmental entity, as an award in a competition 
recognizing excellence or innovation in providing services or 
administering programs. Such an award would be credited to the 
appropriation of the command, installation, or activity that is 
recognized in the award, as provided in appropriation acts. Not 
more than 50 percent of the monetary award may be disbursed to 
the persons who are responsible for earning the award, up to 
$10.0 thousand per person.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit 
the Secretary to accept such monetary awards and disburse the 
award to the morale, welfare, and recreation nonappropriated 
fund account of the command, installation, or activity involved 
in earning the award. Certain incidental expenses could be 
reimbursed from the award amount.
Provision of equipment and facilities to assist in emergency response 
        actions (sec. 378)
      The House bill contained a provision (sec. 383) that 
would amend section 372 of title 10, United States Code, to 
authorize the Department of Defense to provide assistance in 
the form of training facilities, sensors, protective clothing, 
antidotes, and other materials and expertise to appropriate 
federal, state, or local law enforcement agencies for 
responding to emergencies involving chemical or biological 
agents.
      The Senate amendment did not contain a similar provision.
      The Senate recedes with a technical amendment.
Department of Defense military and civil defense preparedness to 
        respond to emergencies resulting from a chemical, biological, 
        radiological, or nuclear attack (sec. 379)
      The Senate amendment contained a provision (sec. 223) 
that would require the Secretaries of the Departments of 
Defense and Energy, in consultation with the Federal Emergency 
Management Agency (FEMA), to submit a report to Congress that 
would describe the military and civil defense plans and 
programs to respond to the use of chemical, biological, 
nuclear, and radiological agents or weapons against a civilian 
population located in the United States or near a U.S. military 
installation.
      The House bill did not contain a similar provision.
      The House recedes with an amendment.

                   Legislative Provisions Not Adopted

Office of Economic Adjustment
      The House bill contained a provision (sec. 304) that 
would increase the amount of funds available to the Office of 
Economic Adjustment by $1.5 million.
      The Senate amendment contained no similar provision.
      The House recedes.
Annual proposed budget for operation of defense business operations 
        fund
      The House bill contained a provision (sec. 314) that 
would require that the budget request for the Department of 
Defense include the amount of funds necessary to cover the 
operating losses of the Defense Business Operations Fund for 
the previous year.
      The Senate amendment contained no similar provision.
      The House recedes.

Reduction in requests for transportation funded through Defense 
        Business Operations Fund

      The House bill contained a provision (sec. 315) that 
would direct a reduction in requests for purchasing 
transportation through the Defense Business Operations Fund 
during fiscal year 1996 by $70.0 million from the amount 
purchased in fiscal year 1995. The provision would also require 
a report on achieving certain efficiencies.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees are concerned about the amount of overhead 
carried by the Department of Defense (DOD) to support its 
transportation infrastructure. The conferees direct the 
Secretary of Defense to submit a report to Congress by March 1, 
1996. The Secretary should address changes to the 
transportation infrastructure and implementation of 
consolidation proposals, such as the elimination of duplication 
in component command structure. The Secretary should also 
address measures to reduce transportation overhead without 
adversely affecting operational and mobilization requirements. 
The conferees recommend a $70.0 million reduction in 
anticipation of savings from improvements and efficiencies.

Repeal of certain environmental education programs

      The House bill contained a provision (sec. 323) that 
would repeal sections 1333 and 1334 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 
U.S.C. 2701, note).
      The Senate amendment contained no similar provision.
      The House recedes.
Repeal of limitation on obligation of amounts transferred from 
        environmental restoration transfer account
      The House bill contained a provision (sec. 324) that 
would eliminate the statutory ``fence'' that precludes the 
transfer of funds from the Defense Environmental Restoration 
Account (DERA) for purposes unrelated to environmental 
remediation.
      The Senate amendment contained no similar provision.
      The House recedes.
Elimination of authority to transfer amounts for toxicological profiles
      The House bill contained a provision (sec. 325) that 
would amend section 2704 of title 10, United States Code. The 
provision would eliminate authority for the Department of 
Defense to use Defense Environmental Restoration Account funds 
to reimburse the Agency for Toxic Substance and Disease 
Registry (ATSDR), a branch of the U.S. Public Health Service. 
Reimbursement is currently provided to ATSDR for performing 
statutorily required health assessments and health risk studies 
at Defense installations listed on the National Priorities List 
(NPL).
      The Senate amendment contained no similar provision.
      The House recedes.
Pricing policies for commissary store merchandise
      The House bill contained a provision (sec. 342) that 
would reduce administrative costs in pricing commissary 
merchandise.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees recognize that there may be potential 
savings for the Defense Commissary Agency (DeCA) if variable 
pricing was permitted. Therefore, the conferees direct that the 
Secretary of Defense submit a report to the Senate Committee on 
Armed Services and the House Committee on National Security not 
later than May 1, 1996 describing how a variable pricing policy 
would be implemented; the estimated savings, if any; the impact 
on customers and suppliers; and a recommended legislative 
proposal, if appropriate.
Procurement of electricity from most economical source
      The House bill contained a provision (sec. 357) that 
would require the Department of Defense (DOD) to procure 
electricity from the most economical source.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees direct the Department of Defense to consult 
with the Federal Energy Regulatory Commission (FERC) on methods 
to obtain lower prices for the electricity procured by the DOD, 
including procurement of such electricity through competitive 
sources. Decisions with regard to procurement of electricity by 
the DOD and the FERC should take into consideration the cost 
savings potential to the DOD and the recovery of the specific 
cost of utility investment that is directly attributable to 
existing arrangements and understandings with the DOD.
      The conferees direct the Department of Defense to submit 
a report to Congress by March 1, 1996 on the feasibility of 
attaining the most economical price for electricity under 
existing statutes. In addition, the DOD shall report on all 
legislative or regulatory impediments to procuring electricity 
from the most economical source and the potential cost savings 
inherent to the elimination of such impediments. The report 
shall also identify those bases or facilities that are in the 
best position to use competitive sources of electricity.
Procurement of certain commodities from most economical source
      The House bill contained a provision (sec. 358) that 
would enable the Department of Defense (DOD) to procure 
commodities from a source other than the General Services 
Administration (GSA) if the source can provide the commodities 
at a lower cost.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees are aware that the requirement for DOD to 
purchase commodities from GSA denies DOD the flexibility to 
pursue good business practices by preventing DOD from procuring 
items at the lowest cost. This inflexibility seems to run 
counter to the desire of Congress, and it does not promote good 
business practices within DOD. Encouraging managers at all 
levels to make sound business decisions is an underlying 
fundamental of the Defense Business Operations Fund concept.
      The conferees direct the Secretary of Defense to report 
to the congressional defense committees by March 1, 1996, 
regarding the advisability of obtaining the authority to bypass 
GSA. The Secretary should identify any statutory relief 
necessary.

Private operation of functions of Defense Reutilization and Marketing 
        Service

      The House bill contained a provision (sec. 361) that 
would require the Secretary of Defense to solicit for 
performance, by commercial entities, of selected functions of 
the Defense Reutilization and Marketing Service (DRMS). The 
provision would require the Secretary to report on those 
functions that should continue to be performed by Department of 
Defense (DOD) civilian employees not later than July 1, 1996.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees expect the Secretary to address the 
privatization of DRMS functions as part of the DOD-wide review 
and report, regarding increased reliance on private sector 
sources for commercial products and services, required 
elsewhere in this bill.
Pilot program for private operation of consolidated information 
        technology functions of Department of Defense
      The House bill contained a provision (sec. 366) that 
would require the Secretary of Defense to enter into 
negotiations for contracting-out the workload of three Defense 
Megacenters. This effort would serve as a three-year pilot 
program to determine the advisability of having this type of 
work performed by the private sector. The goal of the program 
would be to achieve savings of at least 35 percent over current 
practices. Further consolidation of megacenters, to fewer than 
the 16 currently identified, would be prohibited until 
completion of the pilot program.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe there is significant potential to 
make improvements in the efficiency and effectiveness of the 
Department of Defense (DOD) data processing operations, to 
include the data megacenters. The conferees also believe there 
may be significant potential to achieve savings from 
contracting-out work that is not military-essential or 
otherwise unique to government. However, judgments on the 
advantages of contracting-out work should be based on economic 
and mission analyses, which the DOD has not performed.
      The conferees direct the Secretary to submit a report on 
this matter to the defense committees by May 31, 1996. The 
report should include: the rationale for contracting-out work; 
an analysis of the costs and benefits of contracting-out a 
portion of the workload; a detailed description of information 
technology functions and services performed by megacenters that 
are not considered military essential; and the amount of 
savings anticipated to be achieved by contracting-out. The 
conferees note that functions considered to be military-
essential, and those that pertain to information security, 
military readiness, certain aspects of training, and 
warfighting, are not required to be addressed in this report.
Authority of Inspector General over investigations of procurement fraud
      The House bill contained a provision (sec. 382) that 
would consolidate responsibility for all investigations of 
procurement fraud within the Department of Defense under the 
Inspector General.
      The Senate amendment contained no similar provision.
      The House recedes. Under the Inspector General Act of 
1978, as amended, the overall responsibility for investigations 
within the DOD, including procurement fraud investigations, 
rests with the Inspector General. The Inspector General has 
full authority to investigate any allegations of procurement 
fraud involving a DOD contractor. Day-to-day responsibility for 
the conduct of procurement fraud investigations is divided 
among the investigative organizations of the Department of 
Defense and each of the military departments. The Inspector 
General also has full authority to assume responsibility for 
any procurement fraud investigation initiated by one or more of 
the military departments.
      The Defense Advisory Board on the Investigative 
Capabilities of the DOD unanimously recommended that fraud 
investigations be consolidated into the Office of the Inspector 
General. The recommendation was based on several objectives 
that would include eliminating joint investigations, 
eliminating confusion over joint investigations, and increasing 
the capability to identify multiple acts of fraud by the same 
contractors.
      The conferees note that there have been continuing 
concerns about duplication and coordination between the 
Department of Defense Inspector General and the investigative 
components of the military departments with respect to major 
procurement fraud investigations. The conferees agree that the 
Department must endeavor to concentrate procurement fraud 
efforts on investigations rather than jurisdictional disputes. 
Therefore, the conferees believe that the Secretary of Defense 
should make every effort to ensure that this important function 
is performed in the most efficient and effective manner, 
avoiding the necessity for joint investigations to the maximum 
extent practicable.
      The conferees are encouraged to note that the Department 
recently established a coordinating council, headed by the DOD 
Inspector General, to address some of the concerns raised by 
the Defense Advisory Board. To ensure the effectiveness of the 
new procedures, the conferees direct that the Secretary review 
the newly constituted Secretary's Board on Investigations, with 
a particular emphasis on maximizing the efficiency and 
effectiveness of major procurement fraud investigations. As 
part of this review, the Secretary should assess: (1) the 
optimal level of resources required to ensure a robust 
oversight function within the Department; (2) which DOD 
investigative components should conduct procurement fraud 
investigations; and (3) the optimal organization required to 
increase the DOD capability to maximize procurement fraud 
recoveries and indictments.
      The conferees direct the Secretary to provide a report by 
May 1, 1996, to the congressional defense committees on the 
results of this review. The conferees will assess this report 
to ascertain whether further legislation is necessary to 
address remaining concerns over duplication and coordination 
problems among the DOD investigative components.
Transfer of excess personal property to support law enforcement 
        activities
      The House bill contained a provision (sec. 389) that 
would amend section 1208(a)(1)(A) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991, concerning 
the transfer of excess personal property. This provision would 
expand current authority to permit the Secretary of Defense to 
transfer excess property to state and other federal agencies 
for use in law enforcement activities. Current authority 
contained in the above section addresses only transfers to such 
agencies for their use in counter-drug activities.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that numerous avenues currently exist 
to transfer excess property to state and other federal 
agencies, including law enforcement agencies which do not have 
explicit counternarcotics responsibilities. However, there 
appears to be no coherent policy, priority, or central data 
base which allows such agencies to learn what is available at a 
given time, or to effect a transfer without inordinate 
administrative work.
      The conferees direct the Secretary of Defense to review 
this matter and report to the defense committees of the 
Congress not later than March 30, 1996, on developing a 
comprehensive policy and establishing procedures which would 
assist state and federal law enforcement agencies in 
identifying and obtaining such equipment. The Secretary should 
consider Memoranda of Understanding as a means to effect 
transfers.
      The Secretary should also give high priority 
consideration to state and federal law enforcement agencies 
that demonstrate their need for such equipment.
Development and implementation of innovative processes to improve 
        operation and maintenance
      The House bill contained a provision (sec. 390) that 
would direct that $350.0 million, of the funds authorized and 
appropriated for defense-wide operation and maintenance, be 
available for the development or acquisition of information 
technologies and reengineered functional processes.
      The Senate amendment contained no similar provision.
      The House recedes.
Sale of 50 percent of current war reserve fuel stocks and prepositioned 
        war reserves
      The House bill contained a provision (sec. 392) that 
would require the Secretary of Defense to reduce war reserve 
fuel stocks of the Department of Defense to a level equal to 50 
percent of the level of such stocks on January 1, 1995.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe that the DOD has made considerable 
progress in identifying its fuel requirements necessary for 
wartime operations. This has led to a reduction in the required 
level of war reserves. The conferees urge the DOD to continue 
its efforts in this area in order to save money while 
maintaining military readiness.
      The conferees further believe that there is considerable 
opportunity to address critical afloat and ashore war reserve 
deficiencies. The conferees agree to add $60 million for 
purchases of critical war reserve stocks. This funding is 
authorized in the operation and maintenance, defense-wide 
activities account for application to high priority war reserve 
requirements. The Secretary of Defense is requested to report 
on the expenditure of these funds to the congressional defense 
committees prior to their allocation and should seek the views 
of theater commanders-in-chief in determining the application 
of these resources.
Southwest border states anti-drug information system
      The House bill included a provision (sec. 396) that 
indicated that the Southwest Border States Anti-Drug 
Information Systems program is an important element of the 
Department of Defense support of law enforcement agencies in 
the fight against illegal trafficking of narcotics.
      The Senate amendment contained no similar provision.
      The House recedes. The Southwest Border States Anti-Drug 
Information System is addressed elsewhere in this statement of 
managers.
Elimination of certain restrictions on purchases and sales of items by 
        exchange stores and other morale, welfare, and recreation (MWR) 
        facilities
      The Senate amendment contained a provision (sec. 372) 
that would eliminate the cost, price, size, and country of 
origin limitations on purchases and sales of items sold in the 
military exchanges and morale, welfare, and recreation 
facilities.
      The House bill contained no similar provision.
      The Senate recedes.
Funding for Troops to Teachers and Troops to Cops Programs
      The Senate amendment contained a provision (sec. 388) 
that would authorize $42.0 million for the Troops-to-Teachers 
program and $10.0 million for the Troops-to-Cops program from 
amounts authorized for military personnel for fiscal year 1996.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees recognize that these programs address the 
economic dislocation among service members caused by the 
defense drawdown. Therefore, the conferees invite the 
Department of Defense to determine whether use of existing 
resources, if available, is appropriate to continue these 
programs.
Authorization of amounts requested in the budget for Junior ROTC
      The Senate amendment contained a provision (sec. 389) 
that would restore the authorization to fund Junior Reserve 
Officer's Training Corps (JROTC) at the budget request.
      The House bill authorized the JROTC program at the budget 
request.
      The Senate recedes.
      The conferees agree to authorize the JROTC program at the 
budget request.
Use of commissary stores by members of the ready reserve
      The Senate amendment contained a provision (sec. 631) 
that would permit members of the ready reserve to use 
commissaries on the same basis as members on active duty.
      The House bill contained no similar provision.
      The Senate recedes.
Use of commissary stores by retired reserves under age 60 and their 
        survivors
      The Senate amendment contained a provision (sec. 632) 
that would permit survivors of ``gray area'' retirees, members 
of the retired reserve who have not attained the age of 60 
years, to use commissaries as if the sponsor had attained 60 
years of age and was receiving retirement benefits.
      The House bill contained no similar provision.
      The Senate recedes.

              Title IV--Military Personnel Authorizations

                       ITEMS OF SPECIAL INTEREST

Minimum force structure levels for Navy Light Airborne Multipurpose 
        System helicopters
      The conferees note that the Navy Light Airborne 
Multipurpose System (LAMPS) antisubmarine warfare helicopter 
fleet provides an essential element to the Nation's overall 
antisubmarine warfare capability. The conferees understand that 
the Navy has no plans to reduce the number of active or reserve 
LAMPS squadrons below the 14 currently in the force structure 
during fiscal years 1996 or 1997. The conferees believe that 14 
LAMPS squadrons is the minimum structure necessary and fully 
expect the Navy to continue to support that level of force 
structure.

                         legislative provisions

                     legislative provisions adopted

                       Subtitle A--Active Forces

End strengths for active forces (sec. 401)
      The House bill contained a provision (sec. 401) that 
would establish active duty end strengths for fiscal year 1996.
      The Senate amendment contained a similar provision (sec. 
401), but would include an increase of 340, of which 65 would 
be officers, in Navy end strength to permit the Navy to retain 
an active P-3 squadron scheduled for inactivation in fiscal 
year 1996.
      The following table summarizes the authorized active duty 
end strengths for fiscal year 1996.

----------------------------------------------------------------------------------------------------------------
                                                                                    Fiscal year                 
                                                                 -----------------------------------------------
                                                                       1995                            1996     
                                                                   Authorization   1996 Request   Recommendation
----------------------------------------------------------------------------------------------------------------
  Army:                                                                                                         
    Total.......................................................         510,000         495,000         495,000
    Officer.....................................................  ..............          81,300          81,300
  Navy:                                                                                                         
    Total.......................................................         441,641         428,000         428,340
    Officer.....................................................  ..............          58,805          58,870
  Marine Corps:                                                                                                 
    Total.......................................................         174,000         174,000         174,000
    Officer.....................................................  ..............          17,978          17,978
  Air Force:                                                                                                    
    Total.......................................................         400,051         388,200         388,200
    Officer.....................................................  ..............          75,928          75,928
                                                                 -----------------------------------------------
        Total...................................................       1,525,692       1,485,200       1,485,540
        Officer.................................................  ..............         234,011         234,076
----------------------------------------------------------------------------------------------------------------

      The House bill also contained a provision (sec. 521) that 
would establish permanent end strength levels beginning in 
fiscal year 1996.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would integrate 
the House bill provision (sec. 521) into this section.
Temporary variation in DOPMA authorized end strength limitations for 
        active duty Air Force and Navy officers in certain grades (sec. 
        402)
      The House bill contained a provision (sec. 402) that 
would authorize a temporary increase in the number of officers 
who can serve on active duty in the grade of major in the Air 
Force and in the grades of lieutenant commander, commander, and 
captain in the Navy until September 30, 1997.
      The Senate amendment contained a similar provision (sec. 
402).
      The House recedes.
      The conferees fully expect the Secretary of Defense to 
provide a comprehensive proposal to restructure the authorized 
strength tables for commissioned officers on active duty in 
time for the committee to address, in the National Defense 
Authorization Act for Fiscal Year 1997, a permanent solution to 
perceived recurring shortages of officers in controlled grades 
for each service.
Certain general and flag officers awaiting retirement not to be counted 
        (sec. 403)
      The Senate amendment contained a provision (sec. 403) 
that would exempt a retiring Chairman of the Joint Chiefs, 
Chief of Staff of the Army, Chief of Naval Operations, Chief of 
Staff of the Air Force, or Commandant of the Marine Corps from 
being included in the number of general and flag officers on 
active duty, authorized to be serving in the grade of general 
and admiral, during the period when they would complete those 
activities necessary to transition to the retired list after 
they have been relieved from their former position.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees agree that the five positions in this 
provision represent the totality of the critical positions for 
which an exemption of this type is appropriate. The conferees 
expect that the Department will not request exemptions for any 
additional general/flag officer positions.
      The conferees intend that this authority would not be 
used for more than 60 calendar days.

                       Subtitle B--Reserve Forces

End strengths for selected reserve (sec. 411)
      The House bill contained a provision (sec. 411) that 
would authorize selected reserve end strength levels for fiscal 
year 1996.
      The Senate amendment contained a similar provision (sec. 
411).
      The following table summarizes the authorized end 
strength levels for the selected reserve for fiscal year 1996.

------------------------------------------------------------------------
                                               Fiscal year              
                               -----------------------------------------
                                     1995         1996         1996     
                                Authorization   Request   Recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States................      400,000      373,000       373,000  
The Army Reserve..............      242,000      230,000       230,000  
The Naval Reserve.............      102,960       98,602        98,894  
The Marine Corps Reserve......       42,000       42,000        42,274  
The Air National Guard of the                                           
 United States................      115,581      109,458       112,707  
The Air Force Reserve.........       78,706       73,969        73,969  
The Coast Guard Reserve.......        8,000        8,000         8,000  
------------------------------------------------------------------------

      The conferees have approved an increase in the Naval 
Reserve end strength, which reflects the recommendation that 
the Navy retain one reserve P-3 squadron currently scheduled 
for inactivation in fiscal year 1996.
      The conferees have approved an increase in the Marine 
Corps Reserve end strength, which reflects the conferees' 
recommendation that the authorized number or reservists on 
active duty in support of the Marine Corps Reserve be 
increased.
      The conferees have approved an increase in the Air 
National Guard end strength, which reflects the conferees' 
recommendation that the Air Force maintain the PAA squadrons at 
15 aircraft per squadron in fiscal year 1996.
End strengths for the Reserves on active duty in support of the 
        Reserves (sec. 412)
      The House bill contained a provision (sec. 412) that 
would authorize reserve full-time support end strength levels 
for fiscal year 1996.
      The Senate amendment contained a similar provision (sec. 
412).
      The following table summarizes the reserve full-time 
support end strength levels for fiscal year 1996.

------------------------------------------------------------------------
                                               Fiscal year              
                                ----------------------------------------
                                      1995        1996         1996     
                                 authorization   request  recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States.................       23,650      23,390       23,390   
The Army Reserve...............       11,940      11,575       11,575   
The Naval Reserve..............       17,510      17,490       17,587   
The Marine Corps Reserve.......        2,285       2,285        2,559   
The Air National Guard of the                                           
 United States.................        9,389       9,817       10,066   
The Air Force Reserve..........          648         628          628   
------------------------------------------------------------------------

      The conferees have approved an increase in the authorized 
number of reservists on active duty (AR's) in support of the 
Marine Corps Reserve. The conferees note that this increase is 
intended to complement existing active duty support, and is not 
a substitute for any portion of the active duty support that is 
part of the Inspector-Instructor system. Therefore, the 
conferees direct that the Inspector-Instructor support system 
not be reduced as a result of any AR increase. Further, the 
conferees direct that the AR increase of 274 personnel be 
utilized to the extent that it is supported by a specific 
appropriation. The conferees do not support increasing the AR 
program if it means reducing any other reserve programs.
      The increases in the number of reservists on active duty 
in support of the Naval Reserve reflects the conferees' 
approval of additional selected reserve strength to enable the 
Navy to retain a reserve P-3 squadron.
      The increase in the number of reservists on active duty 
in support of the Air National Guard reflects the conferees' 
approval of selected reserve strength to enable the Air 
National Guard to retain the PAA squadrons at 15 aircraft per 
squadron.
Counting of certain active component personnel assigned in support of 
        Reserve component training (sec. 413)
      The House bill contained a provision (sec. 413) that 
would permit active duty personnel assigned to active duty 
units, that have been and continue to be established for the 
principal purpose of providing dedicated training support to 
reserve component units, to be counted toward the number of 
advisers required by section 414(c) of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
102-190).
      The Senate amendment contained no similar provision.
      The Senate recedes.
Increase in the number of members in certain grades authorized to serve 
        on active duty in support of the Reserves (sec. 414)
      The Senate amendment contained a provision (sec. 413) 
that would temporarily increase the number of members of 
certain grades authorized to serve on active duty in support of 
the reserves.
      The House bill contained no similar provision.
      The House recedes.

Reserves on active duty in support of Cooperative Threat Reduction 
        Programs not to be counted (sec. 415)

      The Senate amendment contained a provision (sec. 414) 
that would exempt members of a reserve component who 
participate in Cooperative Threat Reduction Act programs from 
being counted against the authorized active duty end strength.
      The House bill contained no similar provision.
      The House recedes.

Reserves on active duty for military-to-military contacts and 
        comparable activities not to be counted (sec. 416)

      The Senate amendment contained a provision (sec. 415) 
that would amend section 168 of title 10, United States Code, 
to exempt members of a reserve component who participate in 
activities or programs specified in section 168, for over 180 
days, from counting against the end strengths for members of 
the armed services on active duty, authorized by section 
115(a)(1) of title 10, United States Code.
      The House bill contained no similar provision.
      The House recedes.

              Subtitle C--Military Training Student Loads

Authorization of training student loads (sec. 421)
      The House bill contained a provision (sec. 421) that 
would approve the training students loads contained in the 
President's budget.
      The Senate amendment contained an identical provision 
(sec. 421).
      The conference agreement includes this provision.

              Subtitle D--Authorization of Appropriations

Authorization for increase in active duty end strengths (sec. 432)
      The House bill contained a provision (sec. 432) that 
would authorize $112.0 million in additional funds available 
for increasing military personnel end strengths within the 
Department of Defense above those levels requested by the 
President's budget.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   Title V--Military Personnel Policy

                       items of special interest

Funding for the Family Advocacy Program and the New Parent Support 
        Program
      The conferees are concerned about the adequacy of funding 
requested by the Department of Defense for the Family Advocacy 
Program (FAP) and the lack of funding for the New Parent 
Support Program (NPSP). The conferees agree to provide an 
increase of $30.0 million for the FAP and $25.6 for the NPSP. 
The conferees direct that the NPSP increase be allocated as 
follows: Army--$10.0 million; Navy--$7.0 million; Marine 
Corps--$5.0 million; Air Force--$3.6 million. The conferees 
take this action in response to the significant strains placed 
on military families as a result of the high operations tempo 
in all services. The conferees consider the FAP and the NPSP 
critical to the readiness and retention of quality people.
      The conferees recognize that there is fierce competition 
within the Department of Defense, and among the services, for 
scarce operations and maintenance funds. The conferees are 
concerned that the FAP and NPSP funding may be used for other 
purposes. If the Department or a service attempt to reduce, 
divert, or reprogram the FAP or NPSP funding for some other 
purpose, the conferees would consider such an action to be in 
direct contravention of congressional intent.

                         legislative provisions

                     Legislative provisions adopted

                  Subtitle A--Officer Personnel Policy

Joint officer management (sec. 501)

      The Senate amendment contained a provision (sec. 501) 
that would amend joint officer management policies in four 
areas: (1) the number of required critical joint duty 
assignment positions; (2) joint duty assignment credit for 
certain qualifying joint task force positions; (3) the 
education and experience sequencing requirement for the award 
of the joint specialty to general and flag officers; and (4) 
tour length requirements for certain officers on a second joint 
tour.
      The House bill contained no similar amendment.
      The House recedes with a clarifying amendment.
      The conferees note that this amendment is intended to 
provide to the civilian and military leadership of the 
Department of Defense some flexibility to manage the various 
joint officer programs, without undermining the fundamental 
tenets and goals of the Goldwater-Nichols Department of Defense 
Reorganization Act of 1986. Therefore, none of the changes 
included in the conference agreement should be perceived as 
diminishing the importance of joint duty assignments or the 
importance of rigorous preparation before the award of the 
joint specialty or the need for judicious management of those 
officers to whom that designator has been awarded. The 
conferees revised the Department's original proposal to 
preclude the Department from rapidly rotating officers through 
joint task force assignments and thereby circumventing the 
fundamental intent of the Goldwater-Nichols Department of 
Defense Reorganization Act of 1986.
      Regarding credit for service in joint task force and 
multinational force positions, the conferees recognize that 
certain positions will provide real-world joint experience 
equal to or greater than that provided by some positions on the 
Joint Duty Assignment List. Additionally, the conferees believe 
that authorizing the Secretary of Defense to award joint duty 
credit for certain officers serving in joint task force 
positions will permit deserving in-service assignments to 
receive joint duty assignment credit. The conferees fully 
expect the Secretary of Defense to closely manage the award of 
joint duty credit for such positions.

Retired grade for officers in grades above major general and rear 
        admiral (sec. 502)

      The Senate amendment contained a provision (sec. 505) 
that would permit the retirement of three- and four-star 
generals and flag officers to be considered under the same 
standards and procedures as general and flag officer 
retirements at the one- and two-star level.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Wearing of insignia for higher grade before promotion (sec. 503)
      The Senate amendment contained a provision (sec. 507) 
that would define ``frocking'' and limit the numbers of 
officers that could be frocked to grades 0-4 through 0-7.
      Frocking is the practice of allowing an officer to wear 
the insignia of a higher grade prior to appointment to that 
higher grade. While the Department of Defense has attempted to 
control the extent of frocking through regulation, the practice 
remains a means by which the services routinely circumvent the 
statutory limits on the number of officers authorized to serve 
in certain grades.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Authority to extend transition period for officers selected for early 
        retirement (sec. 504)
      The House bill contained a provision (sec. 501) that 
would authorize the secretaries of the military departments to 
defer the date of retirement for officers selected for early 
retirement for up to 90 days, to avoid personal hardship or for 
other humanitarian reasons.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the service secretary to make the decision on a case-by-case 
basis and would prohibit any delegation of this authority.
      The conferees expect the Secretary of Defense and the 
service secretaries to modify the instructions, regulations, 
and policies pertaining to enlisted personnel in order to 
provide an equivalent benefit for enlisted personnel.
Army officer manning levels (sec. 505)
      The House bill contained a provision (sec. 522) that 
would require that, beginning in fiscal year 1999 and 
thereafter, the annual Army end strength be sufficient to meet 
at least 90 percent of active Army officer manpower 
requirements.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Authority for medical department officers other than physicians to be 
        appointed as Surgeon General (sec. 506)
      The Senate amendment contained a provision (sec. 503) 
that would amend sections 3036, 5137, and 8036 of title 10, 
United States Code, to permit educationally and professionally 
qualified officers, such as dentists, nurses, and clinical 
psychologists, as well as doctors, to be appointed as surgeon 
general of an armed force.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Deputy Judge Advocate General of the Air Force (sec. 507)
      The Senate amendment contained a provision (sec. 504) 
that would amend section 8037 of title 10, United States Code, 
to adjust the tenure of the Deputy Judge Advocate General of 
the Air Force from two years to four years and authorize the 
grade of major general for that position.
      The House bill contained no similar provision.
      The House recedes.
Authority for temporary promotions for certain Navy lieutenants with 
        critical skills (sec. 508)
      The House bill contained a provision (sec. 552(d)) that 
would extend the authority for the Navy to ``spot promote'' 
certain lieutenants serving in positions involving critical 
skills.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would extend 
the authority until September 30, 1996 and limit the number of 
positions to which an officer could be promoted under this 
authority.
Retirement for years of service of Directors of Admissions of Military 
        and Air Force Academies (sec. 509)
      The Senate amendment contained a provision (sec. 508) 
that would authorize the Secretary of the Army to involuntarily 
retire the Director of Admissions, United States Military 
Academy, after 30 years of service as a commissioned officer.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make the 
Air Force Academy subject to the application of the provision.

           Subtitle B--Matters Relating to Reserve Components

Extension of certain reserve officer management authorities (sec. 511)

      The House bill contained a provision (sec. 552) that 
would extend authorities that provide for the appointment, 
promotion, and retirement of reserve officers (sec. 552 a-c), 
and the promotion of certain officers on active duty in the 
Navy (sec. 552d).
      The Senate amendment contained an identical provision 
(sec. 506), except for the authority to provide for the 
promotion of certain officers on active duty in the Navy.
      The conference agreement includes the identical 
provisions.
      The promotion of certain officers on active duty in the 
Navy is addressed elsewhere in the conference report.
Mobilization Income Insurance Program for members of Ready Reserve 
        (sec. 512)
      The House bill contained a provision (sec. 517) that 
would authorize an income protection insurance plan for members 
of the Ready Reserve.
      The Senate amendment contained a similar provision (sec. 
511).
      The conference agreement includes this provision.
Military technician full-time support program for Army and Air Force 
        Reserve components (sec. 513)
      The House bill contained a provision (sec. 511) that 
would restore military technician end strength to nearly the 
fiscal year 1995 level and require that the Secretary of 
Defense, in the future, manage military technicians by annual 
end strength. This section would also prohibit military 
technicians in certain high priority units and activities, but 
not those at management-level headquarters, from being subject 
to broad civilian personnel reductions. In addition, this 
section would require the Secretary of Defense, within six 
months of enactment, to initiate measures to consolidate and 
streamline management-level headquarters at the National, 
regional, and state level in the Air Force and Army Reserve and 
National Guard. This section would also require that, after the 
date of enactment, only dual-status technicians be hired.
      The Senate amendment contained a provision (sec. 331) 
that would establish a floor for military technicians in the 
Army and Air Force Reserve and National Guard for fiscal years 
1996 and 1997.
      The Senate recedes with an amendment that would establish 
a floor for military technicians in the Army and Air Force 
Reserve and National Guard at the House level.
      The conferees recognize the critical importance of 
military technicians to reserve component readiness, and direct 
the use of end-strength floors to manage this special category 
of personnel. The conferees urge the Secretary of Defense and 
the Secretaries of the military departments to provide the 
requisite funding to ensure that the correct number of 
qualified military technicians are available to ensure a 
significant contribution to operational readiness.
Revisions to Army Guard combat reform initiative to include Army 
        reserve under certain provisions and to make certain revisions 
        (sec. 514)
      The House bill contained a provision (sec. 513) that 
would change the requirement of section 1111 of the Army 
National Guard Combat Readiness Reform Act of 1992 (title XI, 
Public Law 102-484). As revised, the section would require the 
Army to annually provide at least 150 officers and 1,000 
soldiers, with at least two years prior active duty experience, 
to national guard units.
      This section would also expand the Army selected reserve 
requirements of sections 1112(b), 1113, 1115, 1116, and 1120 of 
the Army National Guard Combat Readiness Reform Act of 1992 
(title XI, Public Law 102-484).
      The Senate amendment contained no similar provision.
      The Senate recedes.
Active duty associate unit responsibility (sec. 515)
      The House bill contained a provision (sec. 519) that 
would amend section 1131 of the Army National Guard Combat 
Readiness Reform Act of 1992 (title XI, Public Law 102-484). As 
revised, the provision would require that each Army National 
Guard brigade and Army Selected Reserve unit, considered 
essential for execution of the national strategy, be associated 
with an active duty unit.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Leave for members of reserve components performing public safety duty 
        (sec. 516)
      The Senate amendment contained a provision (sec. 513) 
that would amend section 6323(b) of title 5, United States 
Code, that would permit employees who elect, when performing 
public safety duty, to use either military leave, annual leave, 
or compensatory time, to which they are otherwise entitled.
      The House bill contained no similar provision.
      The House recedes.
Department of Defense funding for National Guard participation in joint 
        disaster and emergency assistance exercises (sec. 517)
      The Senate amendment contained a provision (sec. 361) 
that would provide funding authority for National Guard units 
to participate in joint exercises to prepare them to respond to 
civil emergencies or disasters.
      The House bill contained no similar provision.
      The House recedes.

                   Subtitle C--Decorations and Awards

Award of Purple Heart to persons wounded while held as prisoners of war 
        before April 25, 1962 (sec. 521)
      The Senate amendment contained a provision (sec. 541) 
that would authorize award of the Purple Heart to prisoners of 
war captured before April 1962 who were injured or wounded in 
conjunction with their capture or imprisonment.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Authority to award decorations recognized acts of valor performed in 
        combat during the Vietnam conflict (sec. 522)
      The Senate amendment contained a provision (sec. 542) 
that would authorize the Secretary of Defense or the 
secretaries of the military departments to award a decoration 
for an act, achievement, or service performed during the 
Vietnam era for which there was no award provided. The 
provision would establish a one-year period in which award 
recommendations could be submitted for consideration and 
existing award review procedures would be used. At the end of 
one year, the Secretary would be required to report to the 
Congress on the results on this review.
      The House bill contained no similar provision.
      The House recedes with an amendment to limit 
consideration of decorations for acts of valor.
Military intelligence personnel prevented by secrecy from being 
        considered for decorations and awards (sec. 523)
      The Senate amendment contained a provision (sec. 543) 
that would require the secretaries of the military departments, 
upon application, to review the records of personnel who 
performed military intelligence duties during the Cold War 
period.
      The House bill contained no similar provision.
      The House recedes.
      The conferees expect the secretaries of the military 
departments to take reasonable actions to widely publicize the 
opportunity to submit requests for consideration of awards and 
decorations under this provision.
Review regarding upgrading of Distinguished Service Crosses and Navy 
        Crosses awarded to Asian Americans and Native American Pacific 
        Islanders for World War II Service (sec. 524)
      The Senate amendment contained a provision (sec. 544) 
that would require the Secretary of Defense to review that 
records of Asian Americans who received the Distinguished 
Service Cross during World War II to determine if, except for 
racial prejudice, the act(s) would have merited award of the 
Medal of Honor.
      The House bill contained no similar provision.
      The House recedes with an amendment which would make all 
the services subject to the application of the provision.
Eligibility for Armed Forces Expeditionary Medal based upon service in 
        El Salvador (sec. 525)
      The House bill contained a provision (sec. 559) that 
would designate the country of El Salvador, during the period 
beginning on January 1, 1981, and ending on February 1, 1992, 
as an area and a period of time in which members of the Armed 
forces participated in operations in significant numbers and 
otherwise met the general requirements for award of the Armed 
Forces Expeditionary Medal.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Procedure for consideration of military decorations not previously 
        submitted in timely fashion (sec. 526)
      The conference agreement includes a provision that would 
establish procedures under which Members of Congress can 
forward to the secretary of a military department a 
recommendation for a military award or decoration, including an 
upgrade of a previously approved award or decoration, for 
consideration by the Secretary, without regard to time limits 
established in law or policy. The secretary concerned will make 
a recommendation concerning the merits of the request to the 
Senate Committee on Armed Services and the House Committee on 
National Security.
      In accordance with established standards, the conferees 
believe that the burden and costs for researching and 
assembling documentation to support approval of requested 
awards and decorations should rest with the requestor and 
should not cause an undue administrative burden within the 
Legislative or Executive Branch.
      The conferees note that the Department of Defense has 
traditionally avoided consideration of requests for review of 
military awards on the merits by citing the expiration of 
various time limits. The conferees, in general, do not support 
the provision of military awards or decorations through private 
relief bills. The conferees intend that the secretaries' 
recommendations would be the basis for consideration of a 
waiver of time limits, if appropriate.

                 Subtitle D--Officer Education Programs

Revision of service obligation for graduates of the services academies 
        (sec. 531)
      The Senate amendment contained a provision (sec. 502) 
that would reduce the service obligation for graduates of the 
service academies from six years to five years.
      The House bill contained no similar provision.
      The House recedes.

Nomination to service academies from Commonwealth of the Northern 
        Marianas Islands (sec. 532)

      The House bill contained a provision (sec. 564) that 
would authorize the Resident Representative of the Commonwealth 
of the Northern Marianas Islands to nominate one cadet for 
attendance at each of the service academies.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Repeal of requirement for athletic director and nonappropriated fund 
        account for the athletics programs at the service academies 
        (sec. 533)

      The Senate amendment contained a provision (sec. 557) 
that would repeal sections 4357 and 9356 of title 10, United 
States Code, and subsections (b), (d), and (e) of sections 556 
of the National Defense Authorization Act for Fiscal Year 1995 
(Public Law 103-337).
      The House bill contained a similar provision (sec. 
1032r).
      The conference report includes this provision.

Repeal of requirement for program to test privatization of service 
        academy preparatory schools (sec. 534)

      The Senate amendment contained a provision (sec. 558) 
that would terminate any test program for determining the cost 
effectiveness of transferring, in whole or in part, the mission 
of the military academy preparatory schools to the private 
sector.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
ROTC access to campuses (sec. 541)
      The House bill contained a provision (sec. 1034) that 
would deny Department of Defense grants and contracts to any 
institution that has an anti-ROTC policy, as determined by the 
Secretary of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes.
ROTC scholarships for the National Guard (sec. 542)
      The House bill contained a provision (sec. 514) that 
would authorize the Secretary of the Army, with the agreement 
of the ROTC cadet involved, to redesignate ongoing scholarships 
as scholarships leading toward service in the Army National 
Guard and to make other technical changes.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Delay in reorganization of Army ROTC regional headquarters structure 
        (sec. 543)
      The House bill contained a provision (sec. 518) that 
would delay the closure of an Army ROTC regional headquarters 
until the Secretary of the Army determines whether such closure 
is in the best interests of the Army.
      The Senate amendment contained a similar provision (sec. 
560).
      The conference agreement includes this provision.
Duration of field training or practice cruise required under the Senior 
        ROTC program (sec. 544)
      The Senate amendment contained a provision (sec. 554) 
that would permit the secretary of a military department to 
prescribe the length of the field training portion or practice 
cruise that must be completed for enrollment in the Reserve 
Officers' Training Corps Advance Course by persons who have not 
participated in the first two years of Reserve Officers' 
Training Corps.
      The House bill contained no similar provision.
      The House recedes.
Active duty officers detailed to ROTC duty at senior military colleges 
        to serve as commandant and assistant commandant of cadets and 
        as tactical officers (sec. 545)
      The House bill contained a provision (sec. 516) that 
would require that, upon the request of any of the six senior 
military colleges, the Secretary of Defense shall detail active 
duty officers to serve as the commandant or assistant 
commandant of cadets, and as tactical officers at the 
institution.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would provide 
the Secretary discretion in responding to a request from a 
senior military college.
      The conferees expect that the service secretaries will 
respond positively to any request, from a senior military 
college, to provide an officer to serve as the commandant or 
assistant commandant, or as a tactical officer.

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

Report concerning appropriate forum for judicial review of Department 
        of Defense personnel actions (sec. 551)
      The Senate amendment contained a provision (sec. 559) 
that would establish a panel to examine whether the existing 
practices with regard to judicial review of DOD administrative 
personnel actions are appropriate and adequate, whether a 
centralized judicial review of administrative personnel actions 
should be established, and whether the United States Court of 
Appeals for the Armed Forces should conduct such reviews. This 
approach has been recommended by the American Bar Association.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the panel to examine whether a single federal court should 
conduct such reviews, and, if so, which federal court should be 
assigned that responsibility. The amendment would provide the 
Secretary of Defense with the responsibility to establish the 
panel. The conference agreement required that the Secretary 
consult with the Attorney General and the Chief Justice of the 
United States concerning appointments to the panel. The 
conferees also required that the Secretary consult with the 
Attorney General prior to sending the report to Congress.

Comptroller General review of proposed Army end strength allocations 
        (sec. 552)

      The House bill contained a provision (sec. 523) that 
would require the Comptroller General of the United States to 
determine the extent to which the Army is able to fully man the 
combat and support forces required to carry out the national 
security strategy and operations other than war for fiscal 
years 1996 through 2001.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Report on manning status of highly deployable support units (sec. 553)

      The House bill contained a provision (sec. 524) that 
would direct each of the secretaries of the military 
departments to conduct a study to determine whether high-
priority support units, that would deploy early in a crisis, 
are, as a matter of policy, manned at less than 100 percent of 
authorized strengths. The provision would further require the 
secretaries of the military departments to report the findings 
of their studies not later than September 30, 1996.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Review of system for correction of military records (sec. 554)

      The Senate amendment contained a provision (sec. 555) 
that would require the secretaries of the military departments 
to review the composition of the Boards for the Correction of 
Military Records and the procedures used by those boards. The 
provision would require the submission of a report to the 
appropriate committees of the Senate and the House of 
Representatives by April 1, 1996.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees are concerned that the Boards for the 
Correction of Military Records are perceived to be 
unresponsive, bureaucratic extensions of the uniformed 
services.

Report on the consistency of reporting of fingerprint cards and final 
        disposition forms to the Federal Bureau of Investigation (sec. 
        555)

      The House bill contained a provision (sec. 565) that 
would require the Secretary of Defense to submit a report on 
the consistency with which fingerprint cards and final 
disposition forms are reported by the Defense Criminal 
Investigation Organizations to the Federal Bureau of 
Investigation.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

                       Subtitle F--Other Matters

Equalization of accrual of service credit for officers and enlisted 
        members (sec. 561)
      The House bill contained a provision (sec. 551) that 
would make the criteria for accrual of service credit for 
officers consistent with the criteria established for enlisted 
members.
      The Senate amendment contained a similar provision (sec. 
552).
      The conference agreement includes this provision.
Army ranger training (sec. 562)
      The House bill contained a provision (sec. 557) that 
would establish a baseline number of officers and enlisted 
personnel that would have to be assigned to the Army Ranger 
Training Brigade and would give the Secretary of the Army one 
year to achieve that level. This provision would also require 
that training safety cells be established in each of the three 
major phases of the Ranger training course.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment which would require 
the Ranger Training Brigade to be manned at 90 percent of the 
requirements for two years, at which time the statutory 
requirement would expire. The amendment would also require the 
Comptroller General to assess the effectiveness of corrective 
actions taken by the Army as a result of the February 1995 
accident at the Florida Ranger Training Camp. The amendment 
also expresses the sense of the Congress that the Secretary of 
Defense review and enhance, if necessary, oversight of all 
high-risk training and consider establishment of safety cells 
similar to those prescribed in the Ranger Training Brigade.
      The conferees direct the secretary of defense to 
undertake a comprehensive analysis of high-risk training 
activities, to include, but not limited to the following: Army-
Ranger; Navy SEAL; Navy and Air Force Survival, Evasion, 
Resistance, and Escape; and Airborne training. The study should 
identify key contributing factors prejudicial to personnel 
safety. This study shall include sensitivity analysis for each 
high-risk training program, with particular emphasis on 
officer-enlisted ratios and instructor-student ratios. The 
conferees direct the Secretary to submit the study results to 
the Senate Committee on Armed Services and the House Committee 
on National Security not later than December 31, 1996.
Separation in cases involving extended confinement (sec. 563)
      The Senate amendment contained a provision (sec. 553) 
that would authorize the administrative separation of a service 
member who is sentenced by court-martial to a period of 
confinement for one year or more.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
such a separation if the member has been sentenced to a period 
of confinement for more than six months.

Limitations on reductions in medical personnel (sec. 564)

      The Senate amendment contained a provision (sec. 556) 
that would amend section 711 of the National Defense 
Authorization Act for Fiscal Year 1991, section 718 of the 
National Defense Authorization Act for Fiscal Years 1992 and 
1993, and section 518 of the National Defense Authorization Act 
for Fiscal Year 1993 to modify the limitations on reductions in 
medical personnel.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Sense of Congress concerning personnel tempo rates (sec. 565)

      The House bill contained a provision (sec. 525) that 
would express the sense of Congress that the Secretary of 
Defense should continue to improve the Department's personnel 
tempo management techniques so that all personnel can expect a 
reasonable personnel tempo rate.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Separation benefits during force reduction for officers of the 
        commissioned corps of National Oceanic and Atmospheric 
        Administration (sec. 566)

      The House bill contained a provision (sec. 566) that 
would, at the discretion of the Secretary of Commerce, 
authorize for officers of the Commissioned Corps of the 
National Oceanic and Atmospheric Administration, the separation 
benefits available to the other uniformed services.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Discharge of members of the armed forces who have the HIV-1 virus (sec. 
        567)
      The House bill contained a provision (sec. 561) that 
would require the Secretary of Defense to separate or retire 
service members who are identified as HIV-positive.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would provide 
the discharged member with an entitlement to medical and dental 
care within the Military Health Care System, to the same extent 
and under the same conditions as a military retiree.
Revision and codification of Military Family Act and Military Child 
        Care Act (sec. 568)
      The House bill contained a provision (sec. 560) that 
would codify in title 10, United States Code, updated 
provisions of The Military Family Act of 1985 (title VII, 
Public Law 99-145), and The Military Child Care Act of 1989 
(title XV, Public Law 101-189), which were instrumental in 
focusing Department of Defense attention on the needs of 
military families and on the importance of effective child care 
programs.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
a reporting requirement.
Determination of whereabouts and status of missing persons (sec. 569)
      The House bill contained a provision (sec. 563) that 
would require the Secretary of Defense to centralize at the 
Department of Defense level, the oversight and policy 
responsibility for accounting for missing persons.
      The Senate amendment contained a similar provision (sec. 
551).
      The Senate recedes with an amendment that would clarify 
and integrate the two provisions.
      The conferees' intention in requiring the creation of the 
Office for Missing Persons (section 1501) is that this office 
will have a broad range of responsibilities that include those 
of all the individual offices that currently have 
responsibilities for POW/MIA matters.
      The conferees expect that the Secretary of Defense will 
organize this new office to serve as the single focal point in 
the Department of Defense for POW/MIA matters and consolidate 
the formulation and oversight of search, rescue, escape and 
evasion and accountability policies. The conferees further 
expect that the Secretary of Defense will make every effort to 
ensure a close working relationship with the national 
intelligence agencies.
      In relation to the Special Rule for Persons Classified as 
KIA/BNR, the conferees believe that the evidence referred to in 
section 1509(c) should be compelling evidence, such as post-
incident letters written by the supposedly-dead person while in 
captivity or United States or other archival evidence that 
directly contradicts earlier United States Government 
determinations.
Associate Director of Central Intelligence for Military Support (sec. 
        570)
      The Senate amendment contained a provision (sec. 1096) 
that would exempt the position of Associate Director of Central 
Intelligence for Military Support from counting against the 
numbers and percentages of officers authorized to be serving in 
the rank and grade of such officer for the armed force of which 
such officer is a member when neither the Director for Central 
Intelligence or the Deputy Director for Central Intelligence is 
a military officer.
      The House bill contained no similar provision.
      The House recedes.

      Subtitle G--Support for Non-Department of Defense Activities

Repeal and revision of certain Civil-Military Programs (secs. 571, 572, 
        573 and 574)
      The House bill contained a provision (sec. 558) that 
would repeal the authority for three programs established by 
the National Defense Authorization Act for Fiscal Year 1993 
(Public Law 102-484): the Civil-Military Cooperative Action 
Program; the National Guard Youth Opportunities Program; and 
the Pilot Outreach Program to Reduce the Demand for Illegal 
Drugs. Additionally, this provision would preclude Department 
of Defense support to the Civilian Conservation Corps.
      The Senate amendment contained several provisions that 
would address Civil-Military Programs as follows: (1) prohibit 
the use of funds for the Office of Civil-Military Programs 
within the Office of the Assistant Secretary of Defense for 
Reserve Affairs (sec. 362); (2) revise section 410 of title 10, 
United States Code, the Civil-Military Cooperative Action 
Program (sec. 363); (3) extend the authorization for the 
National Guard Youth Opportunities Program through Fiscal Year 
1997 (sec. 1083); and (4) extend the duration of the Pilot 
Outreach Program to Reduce the Demand for Illegal Drugs for two 
additional years (sec. 1099A).
      The conference agreement includes several provisions 
(secs. 571, 572, 573, and 574) that would: (1) replace section 
410 of title 10, United States Code, with a new section, that 
would authorize support and services for certain eligible 
organizations and activities outside of the Department of 
Defense (sec. 2012); (2) prohibit the use of funds for the 
Office of Civil-Military Programs within the Office of the 
Assistant Secretary of Defense for Reserve Affairs or for any 
other entity within the Office of the Secretary of Defense that 
has an exclusive or principal mission of providing centralized 
direction for activities under section 572 of this Act; (3) 
extend that authorization for the National Guard Youth 
Opportunities Program for 18 months from enactment and limit 
the number of programs to the number in effect on September 30, 
1995. The Conference Agreement did not extend the duration of 
the Pilot Outreach Program to Reduce Demand for Illegal Drugs.
      Regarding the repeal of specific authority for the Civil-
Military Cooperative Program and the absence of an extension of 
the Pilot Outreach Program to Reduce the Demand for Illegal 
Drugs, the conferees note that the Young Marines, the Seaborne 
Conservation Corps, and other programs operated under 
Department of Defense and service policy prior to the October 
1992 enactment of the statutory authorities for the various 
civil-military programs. The conferees expect that the Young 
Marines, the Seaborne Conservation Corps and other similar 
programs should be able to continue operations in accordance 
with the pre-October 1992 authorities.
      The conferees intend that the 18-month extension of the 
National Guard Youth Opportunities Program would permit these 
programs to develop non-Department of Defense sources of 
funding in order to continue operation after the authority in 
this extension expires.
      Regarding support and services for eligible organizations 
and activities outside of the Department of Defense, the 
conferees intend that the ``customary community relations and 
public affairs activities'', referred to in section 572(b)(1), 
provide for the use of Department of Defense resources to 
support public events, including such activities as the honor 
guards, static displays of equipment, bands, and 
demonstrations, and rely heavily on volunteer support. 
Department of Defense resources should be considered available 
for community relations support only after all military needs 
have been met. Additionally, the conferees expect that, 
concerning the exception to the relationship to military 
training, referred to in section 572(d)(2), most manpower 
requests for assistance under this exception will be met by 
volunteers, and that any assistance other than manpower will be 
extremely limited. With respect to such exception, Government 
vehicles may be used, but only to provide transportation of 
military manpower to and from the work site. The use of 
government aircraft in assistance under this exception is 
prohibited.

                   legislative provisions not adopted

Report on feasibility of providing education benefits protection 
        insurance for service academy and ROTC scholarship students who 
        become medically unable to serve
      The House bill contained a provision (sec. 515) that 
would require the Secretary of Defense to conduct a study on 
the need and feasibility of establishing a no cost to the 
government disability insurance plan for service academy and 
Reserve Officers' Training Corps scholarship students.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe that private insurance companies 
could provide the needed coverage without requiring further 
study by the Secretary of Defense. Accordingly, the conferees 
direct the Secretary to cooperate with private insurers and to 
make insurance information available to students in a manner 
that the Secretary determines to be essentially consistent with 
the way private insurance information is handled elsewhere 
within the Department of Defense.
Authority to appoint Brigadier General Charles E. Yeager, United States 
        Air Force (retired) to the grade of major general on the 
        retired list
      The House bill contained a provision (sec. 562) that 
would authorize the President to advance Brigadier General 
Charles E. Yeager (retired) to the grade of major general on 
the retired list.
      The Senate amendment contained no similar provision.
      The House recedes.

          Title VI--Compensation and Other Personnel Benefits

                         legislative provisions

                     legislative provisions adopted

                     Subtitle A--Pay and Allowances

Military pay raise for fiscal year 1996 (sec. 601)
      The House bill contained a provision (sec. 601) that 
would provide a 2.4 percent military pay raise for all the 
uniformed services, except the National Oceanic and Atmospheric 
Administration. Additionally, the provision would increase by 
5.2 percent the rates of the basic allowance for quarters for 
members of the uniformed services. These increases would be 
effective January 1, 1996.
      The Senate amendment contained a similar provision that 
would apply to all uniformed services (sec. 601).
      The House recedes with an amendment.
      The conferees note that the President issued an Executive 
Order on December 28, 1995 to provide a 2.0 percent pay raise 
to military personnel under section 1009, title 10, United 
States Code to correspond with an increase in federal civilian 
pay effective January 1, 1996. Consequently, the conferees 
agree to amend the original provision to rescind the Executive 
Order and provide authority for an increase of 2.4 percent in 
the rates of military basic pay and basic allowance for 
subsistence and 5.2 percent in the basic allowance for quarters 
retroactively to January 1, 1996.

Limitation on basic allowance for subsistence for members residing 
        without dependents in government quarters (sec. 602)

      The House bill contained a provision (sec. 602) that 
would require the secretaries of the military departments to 
allow no more than 12 percent of the service members without 
dependents who reside in government quarters to receive basic 
allowance for subsistence (BAS). The provision would also 
require the Secretary of Defense to submit a report to confirm 
the current number of service members in this category and to 
establish a standard for the appropriate percentage of 
personnel who are eligible to receive BAS.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Election of basic allowance for quarters instead of assignment to 
        inadequate quarters (sec. 603)

      The Senate amendment contained a provision (sec. 602) 
that would authorize payment of the basic allowance for 
quarters (BAQ) and variable housing allowance (VHA) (and 
overseas housing allowance (OHA) if assigned overseas) to 
single members in the paygrade E-6 and above who have been 
assigned to quarters that do not meet minimum adequacy 
standards established by the Department of Defense.
      The House bill contained no similar provision.
      The House recedes.

Payment of basic allowance for quarters to members in pay grade E-6 who 
        are assigned to sea duty (sec. 604)

      The House bill contained a provision (sec. 603) that 
would authorize payment of basic allowance for quarters and 
variable housing allowance to single E-6 personnel assigned to 
shipboard sea duty.
      The Senate amendment contained a similar provision (sec. 
603).
      The conference agreement includes this provision.
Limitation on reduction of variable housing allowance for certain 
        members (sec. 605)
      The House bill contained a provision (sec. 604) that 
would authorize the Secretary of Defense to establish a minimum 
amount of variable housing allowance (VHA) to meet the cost of 
adequate housing in high cost areas. The provision would also 
prevent the reduction of the amount of VHA paid to an 
individual, as long as the member retains uninterrupted 
eligibility to receive VHA in the housing area and the member's 
housing costs are not reduced.
      The Senate amendment contained a provision (sec. 604) 
that would prevent reduction of the amount of variable housing 
allowance (VHA) paid to an individual, as long as the service 
member retains uninterrupted eligibility to receive VHA in the 
housing area and the service member's housing costs are not 
reduced.
      The House recedes with a technical amendment.
      The conferees believe that, if the current mechanism for 
determining VHA rates is inadequate, the Secretary of Defense 
should notify the Committee on Armed Services of the Senate and 
the Committee on National Security of the House. Such 
notification should include a recommended solution and all 
appropriate justification.
Clarification of limitation on eligibility for Family Separation 
        Allowance (sec. 606)
      The House bill contained a provision (sec. 605) that 
would authorize the payment of family separation allowance to 
service members on board a ship that is away from homeport, 
even though the service member elected to remain unaccompanied 
by dependents at the permanent duty station.
      The Senate amendment contained a similar provision (sec. 
605) that also authorized payment of family separation 
allowance when members are on temporary duty away from 
permanent duty station.
      The House recedes.

           Subtitle B--Bonuses and Special and Incentive Pays

Extension of certain bonuses for reserve forces (sec. 611)
      The House bill contained a provision (sec. 611) that 
would extend until September 30, 1998 the authority for the 
selected reserve reenlistment bonus, the selected reserve 
enlistment bonus, the selected reserve affiliation bonus, the 
ready reserve enlistment and reenlistment bonus, and the prior 
service enlistment bonus.
      The Senate amendment contained a similar provision (sec. 
611) that would provide for extensions to September 30, 1997.
      The House recedes.
Extension of certain bonuses and special pay for nurse officer 
        candidates, registered nurses, and nurse anesthetists (sec. 
        612)
      The House bill contained a provision (sec. 612) that 
would extend until September 30, 1998 the authority for the 
nurse officer candidate accession program, the accession bonus 
for registered nurses, and the incentive special pay for nurse 
anesthetists.
      The Senate amendment contained a similar provision (sec. 
612) that would provide for extensions to September 30, 1997.
      The House recedes.
Extension of authority relating to payment of other bonuses and special 
        pays (sec. 613)
      The House bill contained a provision (sec. 613) that 
would extend until September 30, 1998 the authority for the 
aviation officer retention bonus, the reenlistment bonus for 
active members, enlistment bonuses for critical skills, special 
pay for enlisted members of the selected reserve assigned to 
certain high-priority units, special pay for nuclear-qualified 
officers extending the period of active service, and the 
nuclear career accession bonus. The provision would also extend 
the authority for repayment of education loans for certain 
health professionals who serve in the selected reserve and the 
nuclear career annual incentive bonus to October 1, 1998.
      The Senate amendment contained a similar provision (sec. 
613) that would provide for extensions to September 30 and 
October 1, 1997.
      The House recedes with a clarifying amendment.

Codification and extension of special pay for critically short wartime 
        health specialists in the selected reserves (sec. 614)

      The House bill contained a provision (sec. 614) that 
would amend title 37, United States Code, to include 
authorization of special pay for critically short wartime 
health specialists in the selected reserves and extend the 
authority for the special pay to September 30, 1998.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment to limit the 
extension of authority to September 30, 1997.

Hazardous duty incentive pay for warrant officers and enlisted members 
        serving as air weapons controllers (sec. 615)

      The Senate amendment contained a provision (sec. 614) 
that would authorize special hazardous duty incentive pay for 
enlisted members serving as air weapons controllers aboard 
airborne warning and control systems.
      The House bill contained no similar provision.
      The House recedes.
Aviation career incentive pay (sec. 616)
      The House bill contained a provision (sec. 615) that 
would reduce the initial operational flying requirement for 
Aviation Career Incentive Pay from 9 of the first 12 years to 8 
of the first 12 years of aviation service.
      The Senate amendment contained a similar provision (sec. 
615) that would also restrict to the service secretary the 
authority to grant waivers of the number of years.
      The House recedes.
Clarification of authority to provide special pay for nurses (sec. 617)
      The Senate amendment contained a provision (sec. 616) 
that would add military nurses to the list of health care 
professionals who are eligible to receive a special pay for 
being board certified in their specialty.
      The House bill contained no similar provision.
      The House recedes.
Continuous entitlement to career sea pay for crew members of ships 
        designated as tenders (sec. 618)
      The House bill contained a provision (sec. 616) that 
would authorize personnel assigned to tenders to receive career 
sea pay.
      The Senate amendment contained a similar provision (sec. 
617).
      The conference agreement includes this provision.
Increase in maximum rate of special duty assignment pay for enlisted 
        members serving as recruiters (sec. 619)
      The House bill contained a provision (sec. 617) that 
would authorize payment of a maximum monthly rate of $375 of 
additional special duty assignment pay to recruiters.
      The Senate amendment contained an identical provision 
(sec. 618).
      The conference agreement includes this provision.

            Subtitle C--Travel and Transportation Allowances

Repeal of requirement regarding calculation of allowances on basis of 
        mileage tables (sec. 621)
      The Senate amendment contained a provision (sec. 621) 
that would amend section 104(d)(1)(A) of title 37, United 
States Code, to repeal the requirement that travel mileage 
tables be prepared under the direction of the Secretary of 
Defense.
      The House bill contained no similar provision.
      The House recedes.
Departure allowances (sec. 622)
      The Senate amendment contained a provision (sec. 622) 
that would equalize evacuation allowances to ensure equitable 
treatment of military dependents, civilians and their 
dependents, when officially authorized or ordered to evacuate 
an overseas area.
      The House bill contained no similar provision.
      The House recedes.
Transportation of nondependent child from member's station overseas 
        after loss of dependent status while overseas (sec. 623)
      The House bill contained a provision (sec. 621) that 
would authorize dependent children, who lose eligibility as 
dependents for any reason while overseas, to return to the 
United States one time at government expense prior to the 
sponsor receiving permanent-change-of-station orders.
      The Senate amendment contained a similar provision (sec. 
624).
      The conference agreement includes this provision.
Authorization of dislocation allowance for moves in connection with 
        base realignments and closures (sec. 624)
      The House bill contained a provision (sec. 622) that 
would authorize the payment of dislocation allowance for 
service members directed to move as a result of the closure or 
realignment of an installation.
      The Senate amendment contained a similar provision (sec. 
623).
      The conference agreement includes this provision.

    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Effective date for military retiree cost-of-living adjustments for 
        fiscal years 1996, 1997 and 1998 (sec. 631)
      The House bill contained a provision (sec. 633) that 
would conform the military retired pay cost-of-living 
adjustment (COLA) payment date with the payment date 
established for Federal civilian retirees by making the 
military retired pay COLA first payable during March 1996, 
rather than September 1996.
      The Senate amendment contained a provision (sec. 641) 
that would provide that the 1996 military retired pay cost-of-
living adjustment be effective the first day of March 1996. In 
subsequent years, the cost-of-living adjustment would be 
effective the first day of December of each year.
      The House recedes with an amendment that would provide 
that the military retired pay COLAs for fiscal years 1996 and 
1997 be effective the first day of March, 1996, and the first 
day of December, 1996, respectively. The provision would also 
require that the effective date for COLAs during fiscal year 
1998 conform to the date prescribed for Federal civilian 
retirees.
      The conferees acknowledge that restoring equity to the 
payment of COLAs to military retirees has been a priority 
concern since passage of the Omnibus Budget Reconciliation Act 
of 1993 which caused military retirees to receive their COLAs 
later than their civilian counterparts. The solution specified 
in this provision is a welcome end to the inequity between the 
two groups of retirees.

Denial of non-regular service retired pay for reserves receiving 
        certain court-martial sentences (sec. 632)

      The Senate amendment contained a provision (sec. 642) 
that would authorize the Secretaries of the military 
departments to deny retired pay to non-regular service members 
who are convicted of an offense under the Uniform Code of 
Military Justice and whose sentence includes death, a 
dishonorable discharge, a bad conduct discharge, or dismissal. 
The provision would treat both regular and non-regular service 
members equitably.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Report on payment of annuities for certain military surviving spouses 
        (sec. 633)

      The Senate amendment contained a provision (sec. 648) 
that would require the Secretary of Defense to determine the 
number of surviving spouses of retired careerists who died 
before March 21, 1974 and retired pay eligible reserve retirees 
under age 60 who died before September 30, 1978, and report to 
the Senate Committee on Armed Services and the House Committee 
on National Security. These groups of surviving spouses have 
become known as ``Forgotten Widows'' since they were widowed 
before provisions of the Survivor Benefit Plan were applicable 
to them.
      The House bill contained no similar provision.
      The House recedes.
Payment of back quarters and subsistence allowances to World War II 
        veterans who served as guerrilla fighters in the Philippines 
        (sec. 634)
      The conference agreement includes a provision that would 
require the service secretaries, on request, to pay the 
quarters and subsistence allowance that was not paid to certain 
guerrilla fighters in the Philippines during World War II.
Authority for relief from previous overpayments under minimum income 
        widows program (sec. 635)
      The conference agreement includes a provision that would 
permit the Secretary of Defense to waive the recovery of any 
overpayment made before enactment of the conference report and 
that is attributable to a failure by the Department of Defense 
to apply eligibility requirements correctly.
      The conferees expect the Secretary of Defense to direct 
the Defense Finance and Accounting Service to stop sending 
collection letters to widows expected to be covered under this 
provision.
Transitional compensation for dependents of members of the armed forces 
        separated for dependent abuse (sec. 636)
      The House bill contained a provision (sec. 556) that 
would require the Secretary of Defense to retroactively provide 
compensation to certain eligible dependents inadvertently 
excluded from the program.
      The Senate amendment contained a provision (sec. 649) 
that would amend section 1059(d) of title 10, United States 
Code, to include transitional compensation for dependents whose 
sponsor forfeited all pay and allowances, but was not separated 
from the service.
      The Senate recedes with a clarifying amendment.

                       Subtitle E--Other Matters

Payment to survivors of deceased members for all leave accrued (sec. 
        641)
      The Senate amendment contained a provision (sec. 647) 
that would permit survivors of deceased members of the 
uniformed services to be paid for all leave accrued. This 
provision will enable survivors to be paid for leave accrued 
above the 60 day limit.
      The House bill contained no similar provision.
      The House recedes.
Repeal of reporting requirements regarding compensation matters (sec. 
        642)
      The House bill contained a provision (sec. 631) that 
would eliminate a report on dependents accompanying members on 
assignments to overseas locations and simplify the requirement 
for the President to submit to the Congress recommendations on 
military pay matters.
      The Senate amendment contained a similar provision (sec. 
1072(d)).
      The Senate recedes with an amendment that would combine 
the two provisions.
Recoupment of administrative expenses in garnishment actions (sec. 643)
      The Senate amendment contained a provision (sec. 643) 
that would amend section 5502 of title 5, United States Code, 
to shift the burden for payment of administrative costs, 
incurred incident to garnishment actions, from the employee to 
the creditor.
      The House bill contained no similar provision.
      The House recedes.

Report on extending to junior noncommissioned officers privileges 
        provided for senior noncommissioned officers (sec. 644)

      The Senate amendment contained a provision (sec. 646) 
that would require the Secretary of Defense to study and report 
to the Congress on methods of improving the working conditions 
of noncommissioned officers in pay grades E-5 and E-6. This 
report, and the accompanying legislative recommendations, 
should provide the committee a road map to continue quality of 
life improvements.
      The House bill contained no similar provision.
      The House recedes.

Study regarding joint process for determining location of recruiting 
        stations (sec. 645)

      The House bill contained a provision (sec. 632) that 
would require the Secretary of Defense to conduct a study of 
the process for determining the location and manning of 
recruiting stations. The study would be based on market 
research and analysis conducted jointly by the military 
departments.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Automatic maximum coverage under Servicemen's Group Life Insurance 
        (sec. 646)

      The Senate amendment contained a provision (sec. 644) 
that would automatically enroll service members at the maximum 
insurance level of $200,000, instead of the $100,000 level 
currently in law.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delay 
implementation until April 1, 1996.
Termination of servicemen's group life insurance for members of the 
        Ready Reserve who fail to pay premiums (sec. 647)
      The Senate amendment contained a provision (sec. 645) 
that would authorize the Secretary of Defense to terminate 
coverage under the Servicemen's Group Life Insurance for 
members of the ready reserve who fail to make premium payments 
for 120 days.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delay 
implementation until April 1, 1996.

                   legislative provisions not adopted

Repeal of prohibition on payment of lodging expenses when adequate 
        Government quarters are available
      The House bill contained a provision (sec. 623) that 
would repeal the prohibition on payment of lodging expenses 
when adequate government quarters are available.
      The Senate amendment contained no similar provision.
      The House recedes.

                   Title VII--Health Care Provisions

                       items of special interest

Follow-on medical care for certain members of former members of the 
        Armed Forces and their dependents
      The conferees note that some service members, as a result 
of receiving transfusions at military hospitals were placed at 
risk of contracting a serious communicable disease and 
subsequently transmitting it to their dependents.
      The case of Douglas Simon of Eden Prairie, Minnesota, and 
his family, is an example of the very tragic situation that can 
arise following a transfusion of contaminated blood. In 1983, 
while serving in the Army National Guard, Mr. Simon was 
infected with the AIDS virus after undergoing a blood 
transfusion at Fort Benning, Georgia. Subsequently, he 
unknowingly transmitted the virus to his spouse, Nancy, who in 
turn, transmitted the virus to their daughter Candace. Candace 
became ill and died of AIDS in 1993 at the age of five. Both 
Mr. and Mrs. Simon are now in the terminal stages of AIDS and 
their two remaining children Brian, 11, and Eric, 9, will be 
orphaned. To date, the Department of Defense has not accepted 
any financial responsibility for the treatment of Mr. or Mrs. 
Simon, or the future of the two children. The conferees direct 
the Secretary of Defense to review the Department's role in 
this case and to determine whether the Department of Defense 
should provide fair compensation to these and other similarly 
affected persons.

                         legislative provisions

                     Legislative provisions adopted

                    Subtitle A--Health Care Services

Modifications of requirements regarding routine physical examinations 
        and immunizations under CHAMPUS (sec. 701)
      The House bill contained a provision (sec. 701) that 
would amend section 1079(a) of title 10, United States Code, by 
expanding ``well-baby visits'' and immunizations to dependents 
under the age of six, by authorizing immunizations at age six 
and above and by adding coverage of health promotion and 
disease prevention visits associated with immunizations, pap 
smears and mammograms.
      The Senate amendment contained a similar provision (sec. 
703).
      The conference agreement includes this provision.
Correction of inequities in medical and dental care and death and 
        disability benefits for certain reservists (sec. 702)
      The House bill contained a provision (sec. 702) that 
would authorize reservists the same death and disability 
benefits as active duty members, during off-duty periods 
between successive inactive duty training periods performed at 
locations outside the reasonable commuting distance from the 
member's residence.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Medical care for surviving dependents of retired Reserves who die 
        before age 60 (sec. 703)

      The Senate amendment contained a provision (sec. 701) 
that would permit survivors of ``gray area'' retirees, members 
of the retired reserve who have not attained the age of 60 
years, to receive medical care as if the sponsor had attained 
60 years of age and was receiving retirement benefits.
      The House bill contained no similar provision.
      The House recedes.
Medical and dental care for members of the Selected Reserve assigned to 
        early deploying units of the Army Selected Reserve (sec. 704) 
        and dental insurance for members of the Selected Reserve (sec. 
        705)
      The House bill contained a provision (sec. 703) that 
would require the Secretary of the Army to provide medical and 
dental screenings, physical exams for members over 40, and the 
dental care required to meet dental readiness standards for 
units scheduled for deployment within 75 days of mobilization.
      The provision would also require the Secretary of Defense 
to conduct a demonstration program to offer members of the 
selected reserve dental readiness insurance on a voluntary 
basis, at no cost to the Department of Defense.
      The Senate amendment contained a provision (sec. 702) 
that would require the Secretary of Defense to establish a 
dental insurance plan for members of the selected reserve. The 
provision would require a plan, similar to the active duty 
dependent dental insurance plan, with voluntary enrollment and 
premium sharing by the member.
      The House recedes with two amendments. One requires the 
Secretary of Defense to establish a dental insurance plan for 
members of the selected reserve in fiscal year 1997. The 
amendment also provides authority for the Secretary to conduct 
the necessary surveys, preparation work, and a test of the plan 
in fiscal year 1996. The other amendment requires the Secretary 
of the Army to provide medical and dental care to members of 
early deploying units of the selective reserve.
Permanent authority to carry out Specialized Treatment Facility Program 
        (sec. 706)
      The Senate amendment contained a provision (sec. 704) 
that would amend section 1105 of title 10, United States Code, 
by repealing subsection (h), the sunset provision, to make the 
Specialized Treatment Facility Program permanent.
      The House bill contained no similar provision.
      The House recedes.

                      Subtitle B--TRICARE Program

Definition of TRICARE Program (sec. 711)
      The Senate amendment contained a provision (sec. 711) 
that would define the TRICARE program and other terms of art in 
the statute.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Priority use of military treatment facilities for persons enrolled in 
        managed care initiatives (sec. 712)
      The House bill contained a provision (sec. 711) that 
would amend title 10, United States Code, to require the 
Secretary of Defense, as an incentive for enrollment, to 
establish reasonable priorities for services provided at 
military treatment facilities for TRICARE-enrolled 
beneficiaries.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Staggered payment of enrollment fees for TRICARE program (sec. 713)
      The House bill contained a provision (sec. 712) that 
would amend section 1097(e) of title 10, United States Code, to 
require the Secretary of Defense to allow beneficiaries to pay 
any required enrollment fees on a monthly or quarterly basis, 
at no additional cost to the beneficiary.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment limiting the 
payments to a quarterly basis.
      The conferees direct the Secretary of Defense to 
establish procedures for retired service members to pay 
enrollment fees by allotment.
Requirement of budget neutrality for TRICARE program to be based on 
        entire program (sec. 714)
      The House bill contained a provision (sec. 713) that 
would clarify the requirement for the TRICARE HMO option to be 
budget neutral by requiring that the combined effect of all 
three TRICARE options be budget neutral.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Training in health care management and administration for TRICARE lead 
        agents (sec. 715)
      The House bill contained a provision (sec. 714) that 
would direct the Secretary of Defense to ensure that military 
medical treatment facility commanders, selected to serve as 
lead agents for the Department's managed health-care program, 
TRICARE, receive appropriate training in health-care management 
and administration.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would add key 
subordinates to the training requirement.
Pilot program of individualized residential mental health services 
        (sec. 716)
      The House bill contained a provision (sec. 746) that 
would direct the Secretary of Defense to study the feasibility 
of expanding mental health services to include ``wraparound'' 
services, and to include the requirement that providers share 
financial risk through case-rate reimbursement, and then to 
report the results of the study to Congress by March 1, 1996.
      The Senate amendment contained a provision (sec. 714) 
that would direct the Secretary of Defense to implement a 
program of residential treatment for seriously emotionally 
disturbed and complex-needs adolescents. This treatment would 
incorporate the concept of ``wraparound services'' in one 
TRICARE region. The Secretary would be required to report on 
the evaluation of this program not later than eighteen months 
after the program is implemented.
      The House recedes with a clarifying amendment.
Evaluation and report on TRICARE program effectiveness (sec. 717)
      The House bill contained a provision (sec. 715) that 
would require the Secretary of Defense to obtain an ongoing 
independent evaluation of the TRICARE program and to provide an 
annual report to Congress on the results of the evaluation. The 
evaluation should report on efforts to make TRICARE Prime, the 
HMO option, available in non-catchment and rural areas.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Sense of Congress regarding access to health care under TRICARE program 
        for covered beneficiaries who are Medicare eligible (sec. 718)
      The Senate amendment contained a provision (sec. 713) 
that would express the sense of the Senate that the Secretary 
of Defense should develop a program to ensure that covered 
beneficiaries who are eligible for Medicare and who reside in a 
region in which TRICARE has been implemented have access to 
health care services under TRICARE and that the Department of 
Defense be reimbursed for those services.
      The House bill contained no similar provision.
      The House recedes with an amendment that makes the 
provision a sense of Congress.

          Subtitle C--Uniformed Services Treatment Facilities

Delay of termination of status of certain facilities as Uniformed 
        Services Treatment Facilities (sec. 721)
      The Senate amendment contained a provision (sec. 721) 
that would extend until September 30, 1997, the designation of 
Uniformed Services Treatment Facilities (USTF) as military 
treatment facilities (MTF).
      The House bill amendment contained no similar provision.
      The House recedes.
Limitation on expenditures to support Uniformed Services Treatment 
        Facilities (sec. 722)
      The House bill contained a provision (sec. 721) that 
would amend the National Defense Authorization Act for Fiscal 
Year 1984 (Public Law 98-94) to limit the amount authorized to 
$300.0 million for the Department of Defense Uniformed Services 
Treatment Facilities (USTFs) managed care plan. This section 
would limit beneficiary enrollment in the USTF program to the 
number enrolled as of September 30, 1995.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
the limit on the number of enrollees.
Application of CHAMPUS payment rules in certain cases (sec. 723)
      The Senate amendment contained a provision (sec. 723) 
that would amend section 1074 of title 10, United States Code, 
to include the Uniformed Services Treatment Facilities (USTF) 
in the authority under which a USTF could be reimbursed for 
care provided to a Department of Defense eligible enrollee who 
receives care out of the local area of the USTF in which they 
are enrolled.
      The House bill contained no similar provision.
      The House recedes.
Application of federal acquisition regulation to participation 
        agreements with Uniformed Services Treatment Facilities (sec. 
        724)
      The House bill contained a provision (sec. 722) that 
would amend the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510) by repealing the Federal 
Acquisition Regulation (FAR) exemption granted to the Uniformed 
Services Treatment Facilities (USTFs).
      The Senate amendment contained a similar provision (sec. 
722).
      The Senate recedes.
Development of plan for integrating Uniformed Services Treatment 
        Facilities in managed care programs of Department of Defense 
        (sec. 725)
      The House bill contained a provision (sec. 723) that 
would amend section 718(c) of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510) to 
require the Secretary of Defense to submit to Congress a plan 
under which the 10 Uniformed Services Treatment Facilities 
(USTFs) would be integrated into the Department of Defense's 
managed health-care program by September 30, 1997. In addition, 
this section would require the Secretary to assess the 
feasibility of implementing a modified version of USTF option 
II.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Equitable implementation of uniform cost sharing requirements for 
        Uniformed Services Treatment Facilities (sec. 726)
      The House bill contained a provision (sec. 724) that 
would direct the Secretary of Defense to apply uniform cost 
shares to each of the 10 Uniformed Services Treatment 
Facilities (USTFs) only upon regional implementation of the 
TRICARE managed health care program in the USTF's service area. 
It would also direct the GAO to evaluate the effect of TRICARE 
cost shares on USTFs.
      The Senate amendment contained a provision (sec. 712) 
that would require the Uniformed Services Treatment Facilities 
to implement the TRICARE uniform benefit concurrent with the 
implementation of TRICARE in that region. The recommended 
provision would exempt a covered beneficiary who has been 
continuously enrolled on and after January 1, 1995.
      The Senate recedes with a technical amendment.

Elimination of unnecessary annual reporting requirements regarding 
        Uniformed Services Treatment Facilities (sec. 727)

      The House bill contained a provision (sec. 736) that 
would eliminate unnecessary annual reporting requirements 
regarding military health care.
      The Senate amendment contained no similar provision.
      The Senate recedes.

   Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

Maximum allowable payments to individual health-care providers under 
        CHAMPUS (sec. 731)
      The House bill contained a provision (sec. 731) that 
would amend title 10, United States Code, to codify a provision 
of the Department of Defense Appropriations Act for Fiscal Year 
1995 (Public Law 103-335) that establishes a process for 
gradually reducing CHAMPUS maximum payment amounts to those 
limits for similar services under Medicare.
      The Senate amendment contained a similar provision (sec. 
732).
      The conference agreement includes this provision.
Notification of certain CHAMPUS covered beneficiaries of loss of 
        CHAMPUS eligibility (sec. 732)
      The House bill contained a provision (sec. 743) that 
would direct the administering secretaries to develop a 
mechanism for notifying beneficiaries of their ineligibility 
for CHAMPUS health benefits when the loss of CHAMPUS 
eligibility is due to disability status.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Personal services contracts for medical treatment facilities of the 
        Coast Guard (sec. 733)
      The Senate amendment contained a provision (sec. 733) 
that would authorize the Secretary of Transportation to use the 
personal services contract authority, currently available to 
the Secretary of Defense, to contract for health care providers 
in support of the Coast Guard.
      The House bill contained no similar provision.
      The House recedes.
Identification of third-party payer situations (sec. 734)
      The House bill contained a provision (sec. 733) that 
would authorize the Secretary of Defense to prescribe 
regulations for the collection of information from covered 
beneficiaries regarding insurance, medical service, or health 
plans of third-party payers.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Redesignation of Military Health Care Account as Defense Health Program 
        Account and two-year availability of certain account funds 
        (sec. 735)
      The House bill contained a provision (sec. 734) that 
would amend section 1100 of title 10, United States Code, to 
allow the Secretary of Defense to carry over three percent of 
the defense health plan annual operation and maintenance 
appropriations to the end of the next fiscal year.
      The Senate amendment contained a similar provision (sec. 
731).
      The conference agreement includes this provision.
Expansion of financial assistance program for health care professionals 
        in reserve components, to include dental specialties (sec. 736)
      The House bill contained a provision (sec. 735) that 
would authorize financial assistance for qualified dentists 
engaged in training for a dental specialty which is critically 
needed in wartime.
      The Senate amendment contained a similar provision (sec. 
512).
      The conference agreement includes this provision.
Applicability of limitation on prices of pharmaceuticals procured for 
        Coast Guard (sec. 737)
      The Senate amendment contained in provision (sec. 743) 
that would include the Coast Guard in the pharmaceutical 
purchase program administered by the Department of Veterans 
Affairs.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Expansion of existing restriction on use of defense funds for abortions 
        (sec. 738)
      The House bill contained a provision (sec. 732) that 
would amend section 1093 of title 10, United States Code, to 
restrict the Department of Defense (DOD) from using medical 
treatment facilities or other DOD facilities, as well as DOD 
funds, to perform abortions, unless necessary to save the life 
of the mother.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would prohibit 
the use of Department of Defense facilities to perform 
abortions except in cases where the pregnancy is the result of 
rape or incest or in cases when the life of the mother is 
endangered. The amendment would retain the prohibition on the 
use of Department of Defense funds for abortions except in 
cases when the life of the mother in endangered.

                       Subtitle E--Other Matters

Tri-service nursing research (sec. 741)
      The Senate amendment contained a provision (sec. 741) 
that would authorize establishment of a tri-service research 
program at the Uniformed Services University of the Health 
Sciences.
      The House bill contained no similar provision.
      The House recedes.

Termination of program to train military psychologists to prescribe 
        psychotropic medications (sec. 742)

      The House bill contained a provision (sec. 741) that 
would direct the Department of Defense to terminate the pilot 
demonstration program and to withdraw the authority to 
prescribe psychotropic drugs from psychologists who 
participated in the demonstration program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would prohibit 
any new enrollments, permit current students to complete the 
training, and require a General Accounting Office evaluation of 
the program.

Waiver of collection of payments due from certain persons unaware of 
        loss of CHAMPUS eligibility (sec. 743)

      The House bill contained a provision (sec. 742) that 
would authorize the Secretaries of Defense, Transportation and 
Health and Human Services to waive the collection of certain 
payments described for beneficiaries of the Civilian Health and 
Medical Program of the Uniformed Services (CHAMPUS). This 
waiver would apply to CHAMPUS beneficiaries who lost their 
CHAMPUS eligibility prior to Medicare entitlement because of a 
disability or end-stage renal disease.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Demonstration program to train military medical personnel in civilian 
        shock trauma units (sec. 744)

      The House bill contained a provision (sec. 744) that 
would require the Secretary of Defense to conduct a 
demonstration program, through arrangements with civilian 
hospitals, to evaluate the feasibility of providing additional 
shock trauma training for military medical personnel.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees expect the Secretary of Defense to ensure 
that the program would be budget neutral and that the 
Department would receive compensation, payment in kind, or 
services of equivalent value to the government costs for 
providing services to the non-DOD agencies. The conferees 
further direct the Comptroller General to evaluate the costs 
and value of services or reimbursements to the government.

Study regarding Department of Defense efforts to determine appropriate 
        force levels of wartime medical personnel (sec. 745)

      The House bill contained a provision (sec. 745) that 
would direct the Comptroller General of the United States to 
evaluate the effectiveness of the modeling efforts of each of 
the three service surgeons general related to determination of 
the appropriate wartime military medical force-level 
requirements, and then to submit to Congress a report on this 
evaluation, not later than March 1, 1996.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Report on improved access to military health care for covered 
        beneficiaries entitled to Medicare (sec. 746)
      The House bill contained a provision (sec. 747) that 
would require the Secretary of Defense to report on possible 
alternatives to improving access to the military health care 
system for those beneficiaries who are Medicare eligible and 
ineligible for the Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS).
      The Senate amendment contained no similar provision.
      The Senate recedes.
Report on effect of closure of Fitzsimons Army Medical Center, 
        Colorado, on provision of care to military personnel, retired 
        military personnel, and their dependents (sec. 747)
      The Senate amendment contained a provision (sec. 744) 
that would require the Secretary of Defense to report to the 
Congress on the effect of the closure of Fitzsimons Army 
Medical Center, Colorado, on the capability of the Department 
of Defense to provide health care for members and former 
members of the armed services, and their dependents who suffer 
from undiagnosed illness as a result of service in the Persian 
Gulf War.
      The House bill contained no similar provision.
      The House recedes with an amendment that would expand the 
requirement to include a report on the effect of the closure of 
Fitzsimons Army Medical Center on the capability of the 
Department of Defense to provide health care for all military 
members, retired military personnel, and their dependents.
Sense of Congress on continuity of health care services for covered 
        beneficiaries adversely affected by closures of military 
        medical treatment facilities (sec. 748)
      The House bill contained a provision (sec. 748) that 
would express the sense of Congress that the Secretary of 
Defense should take all appropriate steps to ensure the 
continuation of medical and pharmaceutical benefits for covered 
beneficiaries adversely affected by the closure of military 
facilities.
      The Senate amendment contained no similar provision.
      The Senate recedes.
State recognition of military advance medical directives (sec. 749)
      The House bill contained a provision (sec. 555) that 
would ensure advanced medical directives, prepared by members 
of the armed forces, their spouses, or other persons eligible 
for legal assistance, are recognized as valid by all states and 
possessions of the United States.
      The Senate amendment contained a similar provision (sec. 
1092).
      The Senate recedes with a clarifying amendment.

                   legislative provisions not adopted

Waiver of Medicare Part B late enrollment penalty and establishment of 
        special enrollment period for certain military retirees and 
        dependents

      The Senate amendment contained a provision (sec. 705) 
that would amend the Social Security Act to authorize a waiver 
of the penalty for late enrollment in Medicare Part B for 
Medicare-eligible Department of Defense beneficiaries who 
reside in geographic areas affected by the closure of military 
hospitals under the Base Realignment and Closure process.
      The House bill contained no similar provision.
      The Senate recedes.

Disclosure of information in Medicare and Medicaid coverage data bank 
        to improve collection from responsible parties for health care 
        services furnished under CHAMPUS

      The Senate amendment contained a provision (sec. 734) 
that would amend section 1144 of the Social Security Act to 
extend to the Department of Defense access to information in 
the data bank to enhance the effectiveness of the Department of 
Defense third party collection program.
      The House bill contained no similar provision.
      The Senate recedes.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters

                       items of special interest

Ship repair contracts

      The conferees are concerned with continued reports that 
Navy ship repair contractors are not being paid by the prime 
contractor in a timely manner. The House report accompanying 
H.R. 1530 (H. Rept. 104-131) addressed this issue by asking the 
Navy to pursue remedies necessary to ensure that the 
subcontractor community will be able to support the United 
States Navy fleet properly. The conferees support this language 
and urge the Navy to monitor this problem carefully and explore 
available remedies to ensure that Navy ship repair 
subcontractors are properly and promptly compensated for their 
services.
      The conferees are similarly concerned with the Navy's 
practice of bundling ship repair contracts that include only a 
small number of drydocking requirements within several ship 
repair availabilities. The conferees are concerned that this 
may unnecessarily preclude competition for repair work that 
does not require a drydock. The conferees believe that if the 
Navy continues to bundle multi-year ship repair contracts that 
would in part require the use of a drydock, the Navy should 
give strong consideration to making available, at a reasonable 
cost, a public drydock, to ensure adequate competition.
Worker's compensation coverage on overseas contracts
      The conferees agree with the requirement contained in the 
Senate report (S. Rept. 104-112) that would direct the 
Secretary of Defense to review the efforts of the State 
Department and the Agency for International Development to 
consolidate worker's compensation insurance coverage on 
overseas contracts. The conferees note that chapter 12 of title 
42, United States Code, mandates that all United States 
citizens and legal permanent residents, employed for any 
duration by a defense contractor, be covered by uniform 
worker's compensation insurance.

                         legislative provisions

                     Legislative Provisions Adopted

                     Subtitle A--Acquisition Reform

Limitation on expenditure of appropriations (sec. 801)
      The House bill contained a provision (sec. 821(b)) that 
would repeal section 2207 of title 10, United States Code.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would apply 
section 2207 of title 10, United States Code, solely to 
contracts valued above the simplified acquisition threshold.
Delegation authority (sec. 802)
      The Senate amendment contained a provision (sec. 806) 
that would repeal section 2356 of title 10, United States Code, 
which unnessarily duplicates inherent authority of the 
Secretary of Defense to delegate research contracting 
authorities.
      The House bill contained an identical provision.
      The conference agreement includes this provision.
Critical spare parts (sec. 803)
      The House bill contained a provision (sec. 821(d)) that 
would repeal section 2383 of title 10, United States Code, 
regarding quality requirements for critical spare parts of 
ships or aircraft. The provision was intended to assist the 
Department of Defense in shifting from reliance on outdated 
military specifications and standards to the use of modern 
industrial manufacturing methods that would ensure quality in 
critical spare parts.
      The Senate amendment contained an identical provision 
(sec. 809).
      The conference agreement includes this provision.
Fees for certain testing services (sec. 804)
      The House bill contained a provision (sec. 822) that 
would provide flexibility for the Secretary of Defense to 
require reimbursement of indirect, as well as direct costs, 
from private sector uses of Department of Defense testing 
facilities.
      The Senate amendment contained an identical provision 
(sec. 812).
      The conference agreement includes this provision.
Coordination and communication of defense research activities (sec. 
        805)
      The House bill contained a provision (sec. 824) that 
would amend section 2364 of title 10, United States Code, to 
require that papers prepared by a defense research facility on 
a technological issue relating to a major weapon system be 
available for consideration at all decision reviews.
      The Senate amendment contained an identical provision 
(sec. 807).
      The conference agreement includes this provision.
Addition of certain items to domestic source limitation (sec. 806)
      The House bill contained a provision (sec. 825) that 
would add certain named vessel components to domestic source 
limitations, as provided in section 2534(a) of title 10, United 
States Code. The provision would also extend, through October 
1, 2000, current limitations related to anti-friction bearings 
and would require that these limitations be applicable to 
contracts and subcontracts below the simplified acquisition 
threshold, as well as for commercial subcontracts.
      The Senate contained no similar provision.
      The Senate recedes with an amendment that would modify 
the list of vessel components to be added to the domestic 
source limitations in section 2534 of title 10, United States 
Code. The provision includes language that would restrict the 
application of the domestic source limitations to the 
additional vessel components for contracts entered into after 
March 31, 1996.
      The conferees have included language that would require, 
for a two-year period beginning on the date of enactment of 
this Act, a similar limitation on the purchase of propellers 
with a diameter of six feet or more. The conferees direct the 
Secretary of the Navy to provide the congressional defense 
committees by March 1, 1996 with an assessment of the impact on 
the Navy's ability to maintain and modernize the fleet, and 
address the impact of the limitation on the purchase of and the 
castings for such propellers. The conferees also remain 
concerned over the pressing need to sustain a robust ship 
propeller repair and maintenance commercial base. Therefore, 
the conferees strongly urge the Navy to take this critical 
objective fully into account in allocating propeller repair 
work in the future.
Encouragement of use of leasing authority for commercial vehicles (sec. 
        807)
      The House bill contained a provision (sec. 827) that 
would direct the Secretary of Defense to use lease agreements 
for acquisition of equipment, whenever practicable and 
otherwise authorized by law. The House provision would also 
direct the Secretary to submit to Congress, within 90 days 
after enactment of this bill, a report indicating changes in 
legislation required to facilitate the Department of Defense 
use of leases for the acquisition of equipment.
      The Senate amendment contained a provision (sec. 392), 
similar to the House provision, that would also provide 
authority for the Secretary of Defense to conduct a pilot 
program for lease of commercial utility cargo vehicles under 
certain prescribed conditions.
      The House recedes with a clarifying amendment.
Cost reimbursement rules for indirect costs attributable to private 
        sector work of defense contractors (sec. 808)
      The House bill contained a provision (sec. 844) that 
would authorize the Secretary of Defense to enter into 
agreements with contractors performing or seeking to perform 
private sector work. The House provision would apply modified 
accounting rules with respect to the allocation of indirect 
costs associated with a contractor's private sector work.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would clarify 
the method for allocation of indirect costs to contractor 
private sector work and would require the Secretary of Defense 
to report on the use of the authority contained in this 
provision. The conferees expect the Secretary to act 
expeditiously on each defense contractor application for an 
agreement under this section.
Subcontracts for ocean transportation services (sec. 809)
      The Senate amendment contained a provision (sec. 802(b)) 
that would delay, until May 1, 1996, the inclusion of section 
1241(b) of title 46, United States Code, or section 2631 of 
title 10, United States Code, on a list promulgated under 
section 430(b) of title 41, United States Code.
      The House bill contained no similar provision.
      The House recedes.
Prompt resolution of audit recommendations (sec. 810)
      The Senate amendment contained a provision (sec. 803) 
that would conform section 6009 of the Federal Acquisition 
Streamlining Act of 1994 to the reporting requirements of the 
Inspector General Act of 1978.
      The House bill contained no similar provision.
      The House recedes.
Test programs for negotiation of comprehensive subcontracting plans 
        (sec. 811)
      The Senate amendment contained a provision (sec. 804) 
that would amend the test authority to remove the limitation on 
the activities that may be included in a test. The provision 
would also reduce the number of contracts and the aggregate 
dollar value of those contracts required to establish a 
condition for a contractor's participation in the test program.
      The House bill contained no similar provision.
      The House recedes.
Authority to procure for test or experimental purposes (sec. 812)
      The Senate amendment contained a provision (sec. 808) 
that would amend section 2373 of title 10, United States Code, 
to conform the newly-codified section to the scope of the 
service-specific statutes it replaced.
      The House bill contained no similar provision.
      The House recedes.

Use of funds for acquisition of rights to use designs, processes, 
        technical data and computer software (sec. 813)

      The Senate amendment contained a provision (sec. 810) 
that would clarify section 2386 of title 10, United States 
Code, regarding the types of information the Secretary of 
Defense may acquire from Department of Defense contractors.
      The House bill contained no similar provision.
      The House recedes.

Independent cost estimates for major defense acquisition programs (sec. 
        814)

      The Senate amendment contained a provision (sec. 811) 
that would permit the military departments or defense agencies, 
independent of their respective acquisition executives, to 
prepare independent cost estimates for major defense 
acquisitions assigned to individual components for oversight. 
The provision would align the responsibility for independent 
cost estimates with the level of the decision authority.
      The House bill contained no similar provision.
      The House recedes.

Construction, repair, alteration, furnishing, and equipping of naval 
        vessels (sec. 815)

      The Senate amendment contained a provision (sec. 813) 
that would restore the policy regarding the application of the 
Walsh-Healey Act, repealed by the Federal Acquisition 
Streamlining Act 1994, to contracts for the construction, 
alteration, furnishing, or equipping of naval vessels.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                       Subtitle B--Other Matters

Procurement technical assistance programs (sec. 821)
      The Senate amendment contained a provision (sec. 821) 
that would add $12.0 million to continue the procurement 
technical assistance center program in fiscal year 1996.
      The House bill contained no similar provision, but 
authorized $10.0 million to continue the program in fiscal year 
1996.
      The House recedes.
Additional Department of Defense pilot programs (sec. 822)
      The conferees have adopted a provision that would set 
forth criteria for designating a facility to participate in a 
Department of Defense pilot program and require that the 
Congress approve the designation in legislation enacted after 
the enactment of the National Defense Authorization Act for 
Fiscal Year 1996. The conferees intended that the pilot program 
be used to test, among other initiatives, the expansion of 
commercial practices throughout a facility in which work is 
being performed under contracts with the Department of Defense. 
Nothing in this provision is intended to authorize or award a 
contract, or to exempt a facility from competition requirements 
in the award of a contract.
Treatment of Department of Defense cable television franchise 
        agreements (sec. 823)
      The Senate amendment included a provision (sec. 822) that 
would require cable television franchise agreements between 
cable television operators and the Department of Defense to be 
considered contracts for the telecommunications services under 
Part 49 of the Federal Acquisition Regulation (FAR).
      The House bill contained no similar provision.
      The House recedes with an amendment. The amendment would 
require the United States Court of Federal Claims to render an 
advisory opinion to Congress on the power of the executive 
branch to treat cable franchise agreements as contracts under 
the FAR and, if so, whether the executive branch is required by 
law to treat these agreements as contracts under the FAR. If 
the answer to both questions is affirmative, the conferees 
expect the Department of Defense to implement regulations 
treating cable franchise agreements as contracts for purposes 
of the FAR. If the Court renders an affirmative answer to the 
first question, the conferees will regard that as significant 
basis for enacting a provision similar to that in the Senate 
amendment.
Mentor-protege program authority (sec. 824)
      The conferees have adopted a provision that would extend 
for one year the authority for eligible businesses under the 
Mentor-Protege program to enter into new agreements. The 
conferees agree that this extension does not prejudge the 
outcome of ongoing reviews of programs with similar objectives.

                   LEGISLATIVE PROVISIONS NOT ADOPTED

Testing of defense acquisition programs
      The House bill contained a provision (sec. 823) that 
would amend section 2366 of title 10, United States Code, 
regarding requirements for operational testing in defense 
acquisition programs.
      The Senate amendment contained no similar provision.
      The House recedes.
Waivers from cancellation of funds
      The Senate amendment contained a provision (sec. 801) 
that would make funds available for satellite on-orbit 
incentive fees until such fees would be earned.
      The House bill contained no similar provision
      The Senate recedes.
Repeal of duplicative authority for simplified acquisition purchases
      The Senate amendment contained a provision (sec. 817) 
that would repeal the authority for simplified acquisition 
purchases in section 427 of title 41, United States Code.
      The House bill contained no similar provision.
      The Senate recedes.

Restriction on reimbursement of costs

      The Senate amendment contained a provision (sec. 819) 
that would prohibit reimbursement of allowable costs above 
$250,000 for individual compensation in fiscal year 1996. The 
provision also expressed the sense of the Senate that Congress 
should consider making such prohibition permanent.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees question the appropriateness of the level 
of industry executive compensation reimbursement as an 
allowable expense under government contracts. The conferees 
direct the Secretary of Defense to conduct a thorough 
assessment of its current policies and procedures regarding 
standards of allowability, allocability, and reasonableness of 
compensation reimbursement by the Department of Defense. In 
carrying out such assessment, the Secretary should conduct a 
survey of the executive compensation practices of comparable 
non-defense firms involved with similar industries, taking into 
consideration size and geographic location.
      The conferees direct the Secretary to submit a report to 
the congressional defense committees not later than March 31, 
1996. The report should detail the results of the Secretary's 
assessment and any changes to current policies and procedures, 
implemented as a result of the assessment.

      Title IX--Department of Defense Organization and Management

                         LEGISLATIVE PROVISIONS

                     LEGISLATIVE PROVISION ADOPTED

                      Subtitle A--General Matters

Reorganization of the Office of the Secretary of Defense (sec. 901-903 
        and 905)
      The House bill contained a provision (sec. 901) that 
would require that direct support activities and similar 
functions be included in the mandated personnel reduction. This 
provision would also reduce the number of authorized assistant 
secretaries of defense by two and require that the Secretary of 
Defense provide Congress with a comprehensive reorganization 
plan for the office. Additionally, it would repeal a number of 
the current statutorily mandated offices and positions within 
OSD.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to conduct a detailed review of the 
organization and functions of the Office of the Secretary of 
Defense, including the Washington Headquarters Service and the 
Defense Support Agencies. The amendment would also direct the 
following: a 25 percent reduction of the Office of the 
Secretary of Defense over five years; reduction of the number 
of Assistant Secretaries of Defense by one, from eleven to ten; 
and, on January 31, 1997, repeal certain statutory mandated 
offices and positions within the Office of the Secretary of 
Defense. Additionally, the amendment would establish a charter 
for the Joint Requirements Oversight Council (JROC) effective 
January 31, 1997.
      The conferees, while agreeing to provide the Secretary 
with broad latitude in recommending changes to the existing OSD 
structure, continue to strongly believe that the functional 
responsibilities associated with Special Operations and Low 
Intensity (SOLIC) should be carried out under a senior civilian 
official who can maintain clear and unambiguous civilian 
control over that element of the military. Therefore, the 
conferees urge that the Secretary, in formulating the plan 
required by this provision, vest the SOLIC responsibility in an 
official whose appointment is subject to the advice and consent 
of the Senate and for whom the SOLIC function shall be a 
principal responsibility.
Redesignation of the position of Assistant to the Secretary of Defense 
        for Atomic Energy (sec. 904)
      The Senate amendment contained a provision (sec. 901) 
that would change the name of the Assistant to the Secretary of 
Defense for Atomic Energy to be the Assistant to the Secretary 
of Defense for Nuclear and Chemical and Biological Defense 
Programs.
      The House bill contained no similar provision.
      The House recedes.
Restructuring of Department of Defense acquisition organization and 
        workforce (sec. 906)
      The House bill contained a provision (sec. 902) that 
would require the Secretary of Defense to submit a report to 
Congress including a plan for restructuring the current 
acquisition organizations in the Department of Defense as well 
as an assessment of specified restructuring options. The 
provision would also mandate a reduction of the acquisition 
workforce by 25 percent from October 1, 1995 to October 1, 
1998, and require a reduction of 30,000 acquisition workforce 
positions in the Department of Defense in fiscal year 1996.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment requiring the 
Secretary to submit the report on a plan to reduce by October 
1, 1998 the acquisition workforce, as defined by the Secretary, 
25 percent below the baseline of October 1, 1994. The provision 
would also require the Secretary to reduce the number of 
acquisition personnel by 15,000 in fiscal year 1996.
Report on nuclear posture review and on plans for nuclear weapons 
        management in event of abolition of Department of Energy (sec. 
        907)
      The House bill contained a provision (sec. 903) that 
would require the Secretary of Defense to prepare and submit a 
report to Congress that describes the Secretary's plan to 
incorporate the national security programs of the Department of 
Energy (DOE) into the Department of Defense. In developing the 
plan the Secretary would be required to make every effort to 
preserve the integrity, mission, and functions of these 
programs. The Senate amendment contained a provision (sec. 
3151) that would require the Secretary of Defense to provide 
the congressional defense committees with an assessment of the 
effectiveness of the DOE. The assessment should include: (1) 
maintaining the nuclear weapons stockpile; (2) management of 
its environmental, health, and safety requirements, and 
national security research and development, as compared with 
similar DoD operations; and (3) the fulfillment of DOE's 
Nuclear Posture Review requirements.
      The Senate recedes with an amendment that combines both 
provisions.

Redesignation of Advanced Research Projects Agency (sec. 908)

      The House bill contained a provision (sec. 908) that 
would change the designation of the Advanced Research Projects 
Agency to the Defense Advanced Research Projects Agency.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                    Subtitle B--Financial Management

Transfer authority regarding funds available for foreign currency 
        fluctuation (sec. 911)
      The Senate amendment contained a provision (sec. 1006) 
that would authorize a foreign currency fluctuation account for 
the military personnel appropriation. This authorization would 
be limited to fiscal year 1996 and subsequent appropriations.
      The House bill contained no similar provision.
      The House recedes.
Defense Modernization Account (sec. 912)
      The Senate amendment contained a provision (sec. 1003) 
that would establish a Defense Modernization Account to 
encourage savings within the Department of Defense and to make 
those savings available to address the serious shortfall in 
funding for modernization.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      Under the conference agreement, the Secretary of Defense 
could place in the Defenses Modernization Account funds saved 
from achieving economies and efficiencies in: (1) investment 
programs; and (2) installation management (to the extent that 
unobligated balances in installation management are available 
during the last 30 days of the fiscal year). The conferees 
fully expect the Department to protect current readiness of the 
forces, particularly in regard to funds for budget activities 
one and two in the operation and maintenance appropriations 
accounts.
      In order to encourages savings by the military 
departments and the Department of Defense, funds placed in the 
account would be reserved for use by the department or 
component that generated the savings. No funds could be made 
available from the account by the department of defense except 
through established reprogramming procedures. Reprogramming 
procedures could not be used to exceed the statutory funding 
authorization or statutory quantity ceiling applicable to a 
given program. The amount of funds that could be reprogrammed 
by the Department of Defense could not exceed $500.0 million in 
any one fiscal year.
Disbursing and certifying officials (sec. 913)
      The House bill contained a provision (sec. 1004) that 
would provide for the designation and appointment of disbursing 
and certifying officials within the Department of Defense.
      The Senate bill contained a similar provision (sec. 1002) 
that would authorize the designation and appointment of 
disbursing and certifying officials, and would grant relief 
from liability in certain specific circumstances. Relief from 
liability would be based on demonstrated accountability for the 
loss is determined and diligent efforts to collect money owed 
to the government has been made.
      The House recedes.
Fisher House Trust Funds (sec. 914)
      The Senate amendment contained a provision (sec. 742) 
that would establish trust funds on the books of the Treasury 
for Fisher Houses. The interest earned by these trust funds 
would be used for the administration, operation, and 
maintenance of Fisher Houses within the Army and Air Force.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Limitation on use of authority to pay for emergency and extraordinary 
        expenses (sec. 915)
      The House bill contained a provision (sec. 372) that 
would require the Secretary of Defense to submit to Congress a 
quarterly report of expenditures for emergency and 
extraordinary expenses. The provision would also require the 
Secretary of Defense to provide congressional notification 
prior to an obligation or expenditure of $1.0 million or more.
      The Senate amendment included a provision (sec. 1005) 
that would require the Secretary of Defense to notify Congress 
five days prior to an obligation or expenditure of emergency 
and extraordinary expenses authority in excess of $500,000 and 
15 days prior to an obligation or expenditure of $1.0 million. 
The provision would allow the Secretary of Defense to waive the 
time period required for notification prior to obligation or 
expenditure of funds if a determination were made that such 
prior notification would compromise national security 
objectives. In the event the Secretary uses the authority to 
waive notification for national security reasons, notification 
would be required 30 days after the expenditure of funds or on 
the date the activity is completed.
      The House recedes with an amendment that would require 
the Secretary of Defense to notify the congressional defense 
committees five days in advance of obligation or expenditure of 
funds in excess of $500,000 or 15 days in advance of obligation 
or expenditure of funds in excess of $1.0 million. In the event 
the Secretary determines that prior notification of the 
obligation or expenditure of funds would compromise national 
security objectives, the provision would allow the Secretary to 
waive the waiting period. In the event a national security 
waiver is necessary, the Secretary shall immediately notify the 
congressional defense committees of the need to expend funds, 
and provide the chairman and ranking member, or their 
designees, with any relevant information, including the amount 
and purposes for the obligation or expenditure.
      The conferees remain concerned about the use of 
Department of Defense funds for purposes that are more 
appropriately funded through the international affairs budget. 
The conferees urge the administration to refrain recommending 
the use of the Department of Defense emergency and 
extraordinary expenses authority for non-defense purposes. The 
conferees also caution the Department to exercise minimal and 
judicious use of the national security waiver.

                   legislative provisions not adopted

Change in titles of certain Marine Corps general officer billets 
        resulting from reorganization of the Headquarters, Marine Corps
      The House bill contained a provision (sec. 904) that 
would change references in current law to reflect the 
reorganization of Headquarters, Marine Corps.
      The Senate amendment contained no similar provision.
      The House recedes.
Inclusion of Information Resources Management College in the National 
        Defense University
      The House bill contained a provision (sec. 905) that 
would authorize the Secretary of Defense to establish a 
personnel system for the Information Resources Management 
College that is consistent with the personnel system for other 
institutions within the National Defense University.
      The Senate amendment contained no similar provision.
      The House recedes.
Employment of civilians at the Asia-Pacific Center for Security Studies
      The House bill contained a provision (sec. 906) that 
would authorize the Secretary of Defense to establish a 
personnel system for the Asia-Pacific Center for Security 
Studies.
      The Senate amendment contained no similar provision.
      The House recedes.
Naval nuclear propulsion program
      The House bill contained a provision (sec. 909) that 
would establish that no department or agency may regulate or 
direct any change in function for facilities under the Naval 
Nuclear Propulsion Program unless otherwise permitted or 
specified by law. It contained a second provision (sec. 
1032(m)) that would repeal section 1634 of the National Defense 
Authorization Act for Fiscal Year 1985 (Public Law 98-525, 42 
U.S.C. 7158 note). Section 1634 stipulates that the provisions 
of Executive Order 12344, dated February 1, 1982, pertaining to 
the Naval Nuclear Propulsion Program, shall remain in force 
until changed by law.
      The Senate amendment contained no similar provision.
      The House recedes on both section 909 and section 
1032(m).

Aviation testing consolidation

      The House bill contained a provision (sec. 910) that 
would prevent the Secretary of the Army from consolidating the 
Aviation Technical Test Center, Fort Rucker, Alabama, with any 
other aviation testing facility until 60 days after the date on 
which a report was received.
      The Senate amendment contained no similar provision.
      The House recedes.

Office of Humanitarian and Refugee Affairs

      The Senate amendment contained a provision (sec. 364) 
that would eliminate the Office of Humanitarian and Refugee 
Affairs within the Office of the Assistant Secretary of Defense 
for Special Operations and Low Intensity Conflict.
      The House bill contained no similar provision.
      The Senate recedes.

                      Title X--General Provisions

                       items of special interest

Assistance to local educational agencies when installation housing is 
        located on leased land
      The conferees note that the Secretary of Education has 
declined to recognize military connected students as residing 
on Federal property if the government owned housing in which 
they reside is located on leased land. In one case, recognition 
of on-installation residency was denied even though the housing 
is located within the security perimeter of the installation 
and is managed in the same manner as government housing located 
on government owned land.
      The conferees believe that, for purposes of assistance to 
local educational agencies, residents of government owned 
housing, located on land leased by the government and managed 
in the same manner as government housing on government owned 
land, shall be considered residents of federal property.
Authority to conduct personnel demonstration projects
      The National Defense Authorization Act for Fiscal Year 
1995 made permanent the authority of the Secretary of the Navy 
to continue personnel demonstration projects at the Naval Air 
Warfare Center Weapons Division, China Lake, California, and 
the Naval Command, Control, and Ocean Center, San Diego, 
California, and at successor organizations resulting from the 
reorganization of Naval Air Warfare Center Weapons Division or 
the Naval Command, Control, and Ocean Center. Additionally, the 
National Defense Authorization Act for Fiscal Year 1995 
provided expanded authority for the Secretary of Defense to 
conduct personnel demonstration projects at Science and 
Technology Reinvention Laboratories.
      The conferees are concerned about what appears to be a 
lack of real progress in this area over the past year. 
Therefore, the conferees direct the Department of Defense to 
report to the Senate Committee on Armed Services and the House 
Committee on National Security, not later than February 1, 
1996, the extent to which these expanded authorities have been 
used in each of the military departments. As a minimum, this 
report should include those demonstration projects proposed by 
the military departments, the status of each such proposal, and 
the projected date for final action on each proposal.

                         legislative provisions

                     legislative provisions adopted

                     Subtitle A--Financial Matters

Transfer authority (sec. 1001)
      The House bill contained a provision (sec. 1001) that 
would allow the Department of Defense to transfer up to $2.0 
billion between accounts using normal reprogramming procedures.
      The Senate amendment contained a similar provision (sec. 
1001).
      The House recedes.
Incorporation of classified annex (sec. 1002)
      The House bill contained a provision (sec. 1002) that 
would incorporate by reference the classified annex to the 
bill. In addition, the provision would authorize the 
expenditure of funds made available for programs, projects, and 
activities referred to in the classified annex according to the 
terms, conditions, limitations, restrictions, and requirements 
of those programs, projects, and activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Improved funding mechanisms for unbudgeted operations (sec. 1003), 
        Operation Provide Comfort (sec. 1004), and Operation Enhanced 
        Southern Watch (sec. 1005)
      The House Bill contained a provision (sec. 1003) that 
would establish a procedure for the funding of contingency 
operations out of accounts other than those which are normally 
known as operational readiness accounts. This provision would 
also require the President to budget for any operations that 
are ongoing in the first quarter of a fiscal year and are 
expected to continue into the next fiscal year. If the 
President were to fail to request the necessary funds in his 
annual budget, then funding for these operations would be 
denied at the start of the next fiscal year.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
three separate provisions that would: (1) modify the funding 
mechanism proposed by the House for contingency operations; (2) 
authorize $503.8 million for Enhanced Southern Watch and 
require that semi-permanent elements of this operation be 
designated as forward presence operations; and (3) authorize 
$143.3 million for Provide Comfort and require the Secretary of 
Defense to provide a report on this operation. The 
authorization includes both military personnel and operations 
and maintenance funding.
      The conferees have observed with concern, the continuing 
growth of the Department of Defense involvement in unbudgeted 
peacekeeping and humanitarian contingency operations that 
negatively impact upon military readiness. The Secretary of 
Defense initially estimated the unbudgeted fiscal year 1996 
costs to the Department for ongoing operations in Iraq, Haiti 
and Bosnia to be $1.2 billion. This amount excludes the 
estimated $1.5 billion incremental cost of the proposed 
deployment of U.S. ground forces to Bosnia. Lacking the 
budgeted resources, the Department has resorted to the practice 
of financing the cost of these operations from the military 
services' operational readiness accounts. This practice has 
resulted in the cancellation or deferral of some training 
exercises, necessary equipment maintenance, and other routine 
activities that degrade the readiness of the force. Depending 
on what activities are foregone, this adverse impact could be 
significant.
      In recognition of this problem, the Administration's 
fiscal year 1996 legislative proposal contained a request to 
grant the Secretary of Defense extraordinary authority to 
transfer funds between accounts. The conferees instead 
recommend a provision that would more fully address this matter 
by providing new funding mechanisms for unforeseen and 
unbudgeted contingency operations.
      To address unforeseen and unbudgeted operations, the 
provision would revise existing provisions of law to require 
the Secretary of Defense to draw upon the Defense Business 
Operating Fund (DBOF) to provide much of the funding for these 
operations. In addition, the provision authorizes a targeted 
transfer authority of $200.0 million from non-readiness 
accounts. These accounts are intended to serve as interim 
funding mechanisms until Congress approves a supplemental 
appropriations package to replenish the DBOF cash balances or 
other accounts from which funds were transferred.
      To address ongoing operations in southern Iraq, the 
conferees recommend a provision that would authorize $503.8 
million for Enhanced Southern Watch during fiscal year 1996 and 
would require that before obligating more than $250 million of 
this amount, the Secretary of Defense shall provide the 
Congressional Defense Committees with a report designating any 
elements of Operation Enhanced Southern Watch that are 
semipermanent in nature as forward presence operations that 
should be budgeted in the future in the same manner as other 
forward presence operations routinely budgeted as part of the 
annual defense budget. The conferees believe that the aftermath 
of the Persian Gulf War has fundamentally altered the security 
situation in the region in a manner that will require a 
significant U.S. presence for years to come.
      To address the operation designated as Provide Comfort, 
the conferees recommend a provision that would authorize $143.3 
million in fiscal year 1996. This provision would also require 
the Secretary of Defense to submit a report that details the 
expected fiscal year 1996 costs of that operation, and the 
missions and functions expected to be performed by the 
Department of Defense and other agencies of the Federal 
Government. In addition, this report should discuss the options 
related to reduction of the level of the military involvement 
in the operation, and include an exit strategy for the United 
States.
      Finally, the conferees express the view that costs borne 
by the Department of Defense in conducting contingency 
operations in support of another agency's mission, such as 
humanitarian relief, law enforcement and immigration control, 
should not be assessed against the defense budget topline. The 
conferees are concerned with the increasing cost of these 
operations at a time of declining defense budgets and the 
negative impact this has had upon military readiness. The 
conferees endorse the historical principle of maintaining a 
peacetime defense budget designed to adequately fund the 
activities of the Department of Defense to organize, train and 
equip military forces in a manner sufficient to meet national 
security requirements.
      In addition, the conferees note that the five year 
defense program remains underfunded relative to the national 
security strategy and recommended military force structure. The 
negative impact of these shortfalls will grow in the years 
ahead and threaten our ability to maintain adequate levels of 
short and long-term readiness, including sorely needed 
equipment modernization. Therefore, the conferees believe that 
funding for contingency operations should be provided in 
addition to what would have otherwise been made available for 
the Department of Defense for its normal peacetime activities.
Unauthorized appropriations for fiscal year 1995 (sec. 1006)
      The House bill contained a provision (sec. 1005) that 
would allow the Department of Defense to obligate funds for all 
fiscal year 1995 programs, projects, and activities for which 
the amount appropriated exceeded the amount authorized.
      The Senate amendment contained no such provision.
      The Senate recedes.
Authorization of prior year emergency supplemental appropriations for 
        fiscal year 1995 (sec. 1007)
      The House bill contained a provision (sec. 1006) that 
would authorize the emergency supplemental appropriations 
enacted in the Emergency Supplemental Appropriations and 
Rescissions for the Department of Defense to Preserve and 
Enhance Military Readiness Act of 1995 (Public Law 104-6). This 
Act provided funding for fiscal year 1995 expenses related to 
military operations in Southwest Asia, Haiti, Cuba, Somalia, 
Bosnia, and Korea.
      The Senate amendment contained a similar provision (sec. 
1004).
      The Senate recedes.
Authorization reductions to reflect savings from revised economic 
        assumptions (sec. 1008)
      The conferees agree to a provision that would reflect 
revised economic assumptions that were not available prior to 
the conference report.

                Subtitle B--Naval Vessels and Shipyards

Iowa class battleships (sec. 1011)
      In February 1995, the Secretary of the Navy made a 
decision to strike the Navy's four inactive Iowa class 
battleships from the naval register. The Senate amendment 
contained a provision (sec. 1011) that would direct the 
Secretary of the Navy to restore at least two Iowa class 
battleships to the naval register in an inactive status. The 
Secretary would be required to retain them on the register 
until he is prepared to certify that the Navy has within the 
fleet an operational surface fire support capability that 
equals or exceeds the fire support capability that the 
battleships could provide if returned to active service.
      The Senate provision would recognize the fact that 
battleships could provide a surface fire support capability 
unmatched by any other Navy weapons system and that there is an 
ongoing concern regarding the Department of the Navy's apparent 
lack of commitment to provide for the surface fire support 
capability necessary for amphibious assaults. The ability of 
the Marine Corps and the Navy to conduct forcible entry by 
amphibious assault is an essential element of the Department of 
the Navy's strategic concept for littoral warfare.
      The House bill contained no similar provision.
      The House recedes with an amendment.
      The conferees believe that the Department of the Navy's 
future years defense program, presented with the fiscal year 
1996 budget, could not produce a replacement fire support 
capability comparable to the battleships until well into the 
next century. The conferees consider retention of two 
battleships in the fleet's strategic reserve a prudent measure.
Transfer of naval vessels to certain foreign countries (sec. 1012)
      The Senate amendment included a provision (sec. 1012) 
that would authorize the Secretary of the Navy to transfer 
eight FFG-7 class guided missile frigates to various countries. 
Seven of the frigates would be transferred by grant, and one by 
lease.
      The House bill contained no similar provision.
      The House recedes with an amendment that would:
            (1) reduce the number of grant transfers from seven 
        to four, and the remaining frigates would be 
        transferred by lease or sale;
            (2) require that, as a condition of the transfer of 
        the eight frigates, any repair or refurbishment needed 
        before the transfer, be performed at a shipyard located 
        in the United States;
            (3) amend section 2763 of title 22, United States 
        Code, to permit foreign countries to use foreign 
        assistance funds to lease vessels; and
            (4) amend section 2321j of title 22, United States 
        Code, to prohibit future grant transfers of any vessel 
        that is in excess of 3,000 tons or that is less than 20 
        years old.
      The conferees are aware that in some cases U.S. national 
security will be best served by a grant transfer, particularly 
when the recipient is an important coalition defense partner 
that is making valuable contributions to U.S. security or lacks 
the resources to obtain a vessel by lease or sale. Accordingly, 
the amendment to section 2321j would permit the President to 
request a future grant transfer if it is determined that it is 
in the national security interest of the United States.

Contract options for LMSR vessels (sec. 1013)

      The House bill contained a provision (sec. 1021) that 
would recommend that the Secretary of the Navy negotiate a 
contract option price for a seventh large medium speed roll-on/
roll-off (LMSR) strategic sealift ship at each of the two 
shipyards that currently have construction contracts.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would clarify 
that the provision would not preclude the Secretary of the Navy 
from competing these two contract options between the two 
shipyards that currently have construction contracts.

National Defense Reserve Fleet (sec. 1014)

      The Senate amendment contained a provision (sec. 381) 
that would permit the use of the National Defense Sealift Fund 
(NDSF) to budget for expenses of the national defense reserve 
fleet (NDRF). Beginning with the fiscal year 1996 request, 
funds for NDRF expenses would be included in the NDSF budget 
request within budget function 051.
      The House bill contained no similar provision.
      The House recedes with an amendment that would:
            (1) clarify that NDRF vessels would not require 
        retrofit to a double hull configuration as a 
        consequence of this change in budgeting procedure;
            (2) clarify that NDSF funds shall not be used for 
        the acquisition of ships for the NDRF that are built in 
        foreign shipyards; and
            (3) permit the use of NDSF funds to complete the 
        modifications needed to prepare two roll-on/roll-off 
        ships that were purchased in fiscal year 1995 for 
        incorporation into the ready reserve force of the NDRF.
      The conferees intend that the Department of Defense seek 
and obtain specific legislative authorization prior to 
obligating and expending any funds for the acquisition of any 
vessels for the NDRF.
      The conferees are aware of the importance of strategic 
sealift to national security. The conferees will revisit the 
prohibition on procurement of ships built in foreign shipyards 
but will only do so when the Department has established and 
funded a national defense features program, and they have had 
an opportunity to evaluate its effectiveness as an alternative 
source of strategic sealift.

Naval salvage facilities (sec. 1015)

      The Senate amendment contained a provision (sec. 805) 
that would consolidate all sections in chapter 637 of title 10, 
United States Code, relating to naval salvage facilities.
      The House bill contained no similar provision.
      The House recedes with an amendment.
Vessels subject to repair under phased maintenance contracts (sec. 
        1016)
      The House bill contained a provision (sec. 1022) that 
would require the Secretary of the Navy to ensure that vessels 
or classes of vessels, covered by phased maintenance contracts 
while in active Navy service, would continue to be covered by 
those contracts after being transferred to other operating 
commands, such as the Military Sealift Command.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would restrict 
this requirement to type AE ships covered by phased maintenance 
contracts as of the date of enactment of the National Defense 
Authorization Act for Fiscal Year 1996.

Clarification of requirements relating to repairs of vessels (sec. 
        1017)

      Section 7310 of title 10, United States Code, places 
limits on the type of repairs that can be performed by foreign 
shipyards on Navy ships that are homeported in the United 
States. The House bill contained a provision (sec. 1023) that 
would amend section 7310 by designating Guam a United States 
homeport for purposes of that section.
      The Senate recedes.

Naming amphibious ships (sec. 1018)

      The Senate amendment contained a provision (sec. 1013) 
that would make the following findings:
            (1) this is the fiftieth anniversary of the battle 
        of Iwo Jima, one of the greatest victories in the 
        Marine Corps' illustrious history;
            (2) the Navy has recently retired the ship that 
        honored that battle, U.S.S. Iwo Jima (LPH-2), the first 
        ship in a class of amphibious assault ships;
            (3) this Act authorizes the LHD-7, the final ship 
        of the Wasp class of amphibious assault ships, to 
        replace the Iwo Jima class of ships;
            (4) the Navy is planning to start building a new 
        class of amphibious transport docks, now called the 
        LPD-17 class, and this Act also authorizes funds that 
        will lead to procurement of these vessels;
            (5) there has been some confusion in the rationale 
        behind naming new naval vessels, with traditional 
        naming conventions frequently violated; and
            (6) although there have been good and sufficient 
        reasons to depart from naming conventions in the past, 
        the rationale for such departures has not always been 
        clear.
      The Senate amendment would also express the sense of the 
Senate that:
            (1) the LHD-7, authorized in the Senate amendment, 
        should be named the U.S.S. Iwo Jima; and
            (2) the ships of the LPD-17 class amphibious ships 
        should be named after a Marine Corps battle or a member 
        of the Marine Corps.
      The House bill contained no similar provision.
      The House recedes with an amendment. The conferees agree 
to endorse the sense of the Senate expressed as a sense of 
Congress.
Naming of naval vessel (sec. 1019)
      The House bill contained a provision (sec. 1024) that 
would express the sense of Congress that the Secretary of the 
Navy should name an appropriate naval vessel the U.S.S. Joseph 
Vittori.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Transfer of riverine patrol craft (sec. 1020)
      The House bill contained a provision (sec. 1025) that 
would authorize the Secretary of the Navy to transfer one Swift 
class riverine patrol craft to the Tidewater Community College, 
Portsmouth, Virginia, for scientific and educational purposes.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                  Subtitle C--Counter-Drug Activities

Counter-drug activities
      The budget request for drug interdiction and counterdrug 
activities totals $680.4 million, plus $131.5 million for 
operational tempo which is included within the operating 
budgets of the military services.
      Both the House bill and the Senate amendment would 
authorize the budget request of $680.4 million, with marginal 
differences in the allocation of these funds.
      Both the House bill and the Senate amendment would delete 
funding for the Community Outreach Programs ($8.2 million). In 
addition, the Senate amendment included a provision (sec. 1022) 
that would prohibit continued Department of Defense (DOD) 
funding of the National Drug Intelligence Center (NDIC) ($34.0 
million).
      The House bill would authorize increased funding for the 
Tethered Aerostat Radar System ($1.5 million), Counterdrug 
Analysis ($1.2 million), Southcom Radars ($1.5 million), 
Special Operations Forces (SOF) Counterdrug Support ($2.5 
million), and CARIBROC Communications ($1.5 million).
      The Senate amendment would authorize an increase in 
funding for procurement of non-intrusive inspection devices for 
the Customs Service ($25.0 million), Source Nation Support 
Initiatives ($15.2 million) and the Gulf States Counterdrug 
Initiative ($2.0 million).
      The conferees agree to delete DOD funding for the 
Community Outreach Programs and to reduce funding for the 
National Drug Intelligence Center to $20.0 million. The 
conferees also agree to an undistributed reduction of $12.3 
million. Offsets to comply with the undistributed reduction may 
not be taken from items where increases have been provided.
      The conferees agree to authorize additional funding for 
Law Enforcement Agency Support, with a $4.0 million increase to 
expand the intelligence activities of the Gulf States Coast 
Initiative and a $2.5 million increase for the Southwest Border 
States Information System. The conferees support continued DOD 
assistance for the Southwest Border States Anti-Drug 
Information System and urge the Secretary of Defense to 
continue to monitor and support this system through completion 
of the current program.
      The conferees further agree to authorize an additional 
increase of $28.0 million for other Law Enforcement Agency 
Support. The conferees urge the Secretary of Defense, through 
normal reprogramming procedures, to use up to $25.0 million of 
these funds to procure low-energy/backscatter x-ray equipment 
for use as non-intrusive inspection devices. The conferees are 
aware that 70 percent of the illegal drugs that enter the 
United States come, primarily by air, into Mexico and then 
across the southwest border by truck and automobile. The 
conferees believe that the fielding of non-intrusive inspection 
devices at the southwest border would significantly contribute 
to the fight against illegal drug trafficking across the United 
States-Mexican border. The conferees also urge the Secretary of 
Defense, through normal reprogramming procedures, to consider 
using available funds for improvements and extension of the 
existing fence along the San Diego Border Patrol Sector.
      Allocation of funds for counterdrug activities are 
indicated below:

Drug interdiction and counterdrug activities, operations and maintenance

                                                               Thousands
    Fiscal year 1996 drug and counterdrug request.............  $680,400
        Source nation support.................................   127,300
        Dismantling cartels...................................    64,300
        Detection and monitoring..............................   111,700
        Law enforcement agency support........................   279,300
        Demand reduction......................................    97,800
    Reductions:
        Community outreach programs...........................     8,236
        National Drug Intelligence Center.....................    14,000
        Undistributed reduction...............................    12,264
    Increases, law enforcement agency support:
        Gulf States counterdrug initiative....................     4,000
        Southwest border States information system............     2,500
    Other (non-intrusive inspection devices, Southwest border 
      fence)..................................................    28,000
                    --------------------------------------------------------------
                    ____________________________________________________

            Total.............................................   680,400

Revision and clarification of authority for Federal support of drug 
        interdiction and counter-drug activities of the National Guard 
        (sec. 1021)

      The Senate amendment contained a provision (sec. 1021) 
that would revise and clarify authority for federal support of 
drug interdiction and counter-drug activities of the National 
Guard.
      The House bill contained no similar provision.
      The House recedes with an amendment which would further 
clarify the legal status of National Guard personnel 
participating in these programs.

National Drug Intelligence Center (sec. 1022)

      The Senate amendment included a provision (sec. 1022) 
that would prohibit further Department of Defense (DOD) funding 
of the National Drug Intelligence Center (NDIC), but would 
allow the Secretary of Defense to continue to provide DOD 
intelligence personnel to support intelligence activities at 
NDIC, as long as the number of personnel provided by DOD does 
not exceed the number used to support intelligence activities 
at NDIC as of the date of enactment of this bill.
      The House bill contained no similar provision.
      The House recedes.

                     Subtitle D--Civilian Personnel

Management of Department of Defense civilian personnel (sec. 1031)
      The House bill contained a provision (sec. 331) that 
would prohibit the use of full-time equivalent personnel 
ceilings in the management of the Department of Defense's 
civilian workforce.
      The Senate amendment contained a similar provision (sec. 
332).
      The Senate recedes with a clarifying amendment.
      The conferees direct the Secretary of Defense to report 
to the Senate Committee on Armed Services and the House 
Committee on National Security by February 15, 1996, on plans 
to manage civilian personnel in consideration of this 
provision.
Conversion of military positions to civilian positions (sec. 1032)
      The House bill contained a provision (sec. 333) that 
would require the Secretary of Defense to convert not less than 
10,000 military positions to performance by civilian employees 
of the Department of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit 
the conversion to be phased over two fiscal years.
Elimination of 120-day limitation on details of certain employees (sec. 
        1033)
      The Senate amendment contained a provision (sec. 338) 
that would amend section 3341 of title 5, United States Code, 
to eliminate the requirement that the administration of details 
for civilian employees be managed in 120-day increments.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Authority of civilian employees of the Department of Defense to 
        participate voluntarily in reductions in force (sec. 1034)
      The Senate amendment contained a provision (sec. 340) 
that would allow employees who are not affected by a reduction-
in-force (RIF) to volunteer to be RIF separated in place of 
other employees who are scheduled for RIF separation.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Authority to pay severance payments in lump sums (sec. 1035)
      The Senate amendment contained a provision (sec. 341) 
that would amend section 5595 of title 5, United States Code, 
to permit the lump-sum payment of severance pay.
      The House bill contained no similar provision.
      The House recedes.
Continued health insurance coverage (sec. 1036)
      The House bill contained a provision (sec. 337) that 
would extend continued health insurance coverage for certain 
employees affected by a force reduction or a base realignment 
and closure action.
      The Senate amendment contained a similar provision (sec. 
337).
      The Senate recedes.
Revision of authority for appointments of involuntarily separated 
        military reserve technicians (sec. 1037)
      The Senate amendment contained a provision (sec. 336) 
that would amend section 3329 of title 5, United States Code, 
to eliminate the requirement regarding separated technicians.
      The House bill amendment contained no similar provision.
      The House recedes.
Wearing of uniform by National Guard technicians (sec. 1038)
      The Senate amendment contained a provision (sec. 333) 
that would require military technicians to wear military 
uniforms in their jobs. The provision would also place 
technician officers on the same footing as Active Guard and 
Reserve officers for purposes of qualifying for a uniform 
allowance.
      The House bill contained no similar provision.
      The House recedes.
Military leave for military reserve technicians for certain duty 
        overseas (sec. 1039)
      The House bill contained a provision (sec. 512) that 
would authorize military technicians an additional 44 workdays 
of leave, without loss of pay and other benefits, for periods 
the technician would serve on active duty, without pay, while 
in support of non-combat operations outside the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Personnel actions involving employees of nonappropriated fund 
        instrumentalities (sec. 1040)
      The House bill contained a provision (sec. 334) that 
would clarify the definition of nonappropriated fund 
instrumentality employees and permit the direct reporting of 
violations by nonappropriated fund employees to the Department 
of Defense Inspector General.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Coverage of nonappropriated fund employees under authority for flexible 
        and compressed work schedules (sec. 1041)
      The House bill contained a provision (sec. 336) that 
would provide the same overtime exemption for nonappropriated 
fund employees as applies to other civilian employees of the 
Department of Defense.
      The Senate amendment contained a similar provision (sec. 
343).
      The House recedes.

Limitation on provision of overseas living quarters allowances for 
        nonappropriated fund instrumentality employees (sec. 1042)

      The House bill contained a provision (sec. 335) that 
would, as of September 30, 1997, conform the allowance for 
overseas living quarters for nonappropriated fund employees to 
that provided for civilian employees of the Department of 
Defense paid from appropriate funds.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

Elections relating to retirement coverage (sec. 1043)

      The House bill contained a provision (sec. 338) that 
would increase the number of employees eligible to transfer 
between nonappropriated fund and appropriated fund morale, 
welfare, recreation programs without significant loss of 
benefits.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would provide 
for portability of retirement benefits by allowing: (1) 
election by employees of the nonappropriated fund or the 
Federal Employees Retirement System; (2) credit for years of 
service either as a nonappropriated fund employee or a civil 
service employee; (3) government-wide eligibility; and (4) 
creditability of nonappropriated fund service for reduction-in-
force purposes.

Extension of temporary authority to pay civilian employees with respect 
        to the evacuation from Guantanamo, Cuba (sec. 1044)

      The Senate amendment contained a provision (sec. 334) 
that would extend the authorization for the Navy to continue to 
pay evacuation allowances until January 31, 1996 to civilian 
employees whose dependents were evacuated from Guantanamo, 
Cuba, in August and September 1994. The provision would also 
require a monthly report which would include the actions that 
the Secretary of the Navy is taking to eliminate the conditions 
making the payments necessary.
      The House bill contained no similar provision.
      The House recedes.

            Subtitle E--Miscellaneous Reporting Requirements

Report on budget submission regarding reserve components (sec. 1051)
      The Senate amendment contained a provision (sec. 1007) 
that would require the Secretary of Defense to submit a report 
that describes measures taken within the Department of Defense 
to ensure that the reserve components are appropriately funded, 
and, for fiscal year 1997, lists the major weapons and items of 
equipment, as well as, the military construction projects 
provided for the National Guard and Reserves.
      The House bill included no similar provision.
      The House recedes with an amendment.
      The conferees agree to a provision that would require the 
report included in the original Senate provision, and would 
require the Secretary of Defense to display in all future-years 
defense programs the amounts requested for procurement of 
equipment and military construction for each of the reserve 
components.
Report on desirability and feasibility of providing authority for use 
        of funds derived from recovered losses resulting from 
        contractor fraud (sec. 1052)
      The Senate amendment contained a provision (sec. 382) 
that would allow the secretary of a military department to 
receive an allocation from funds recovered in contractor fraud 
cases, for use by installations that carried out or supported 
investigations or litigation involving contractor fraud.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to report on the desirability and 
feasibility of authorizing the retention and use of a portion 
of such recovered amounts.
Review of national policy on protecting the national information 
        infrastructure against strategic attack (sec. 1053)
      The Senate amendment contained a provision (sec. 1097) 
that would require the President to submit a report that would 
set forth the national policy and architecture governing plans 
to protect the national information infrastructure against 
strategic attack.
      The House bill contained no similar provision.
      The House recedes.
      The conferees intend that the President rely, to the 
maximum extent practicable, on the executive agent for the 
national communications system in the preparation and 
submission of the report.
Report on Department of Defense boards and commissions (see 1054)
      The Senate amendment contained a provision (sec. 1084) 
that would require the Department of Defense to prepare a 
report listing certain boards and commissions. The Department 
would be required to indicate whether each board or commission 
merits continued support.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Change in reporting date (sec. 1055)
      The Senate amendment contained a provision in its 
classified annex that would change the date that the Department 
of Defense is required to submit annually its budget materials 
for Special Access Programs, from February 1 to March 1.
      The House bill contained no similar provision.
      The House recedes.

  Subtitle F--Repeal of Certain Reporting and Other Requirements and 
                              Authorities

Miscellaneous provisions of law (sec. 1061)
      The House bill contained a provision (sec. 1032) that 
would repeal numerous provisions of law that have expired or 
are obsolete, or that were inconsistent with other provisions 
recommended by the House.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would retain 
portions of the suggested deletions.
Reports required by Title 10, United States Code (sec. 1062)
      The Senate amendment contained seven provisions (secs. 
1071-1077) that would delete a total of 67 reports currently 
required of the Department of Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment that would retain 
several of the reporting requirements.

          Subtitle G--Department of Defense Education Programs

Continuation of the Uniformed Services University of the Health 
        Sciences (sec. 1071)
      The House bill contained a provision (sec. 907) that 
would require the Secretary of Defense to budget for ongoing 
operations at the Uniformed Services University of the Health 
Sciences.
      The Senate amendment contained a similar provision (sec. 
1031) that would reaffirm the prohibition of the closure of the 
University, and establish minimum staffing levels.
      The House recedes with a clarifying amendment.
Additional graduate schools and programs at the Uniformed Services 
        University of the Health Sciences (sec. 1072)
      The Senate amendment contained a provision (sec. 1032) 
that would authorize additional graduate schools and programs 
at the Uniformed Services University of the Health Sciences. 
This provision would permit the Board of Regents to establish a 
graduate school of nursing at the University.
      The House bill contained no similar provision.
      The House recedes.
Funding for adult education programs for military personnel and 
        dependents outside the United States (sec. 1073)
      The Senate amendment contained a provision (sec. 1033) 
that would authorize appropriations for the military continuing 
education programs of the armed services, and for adult members 
of military families stationed or residing outside the United 
States.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Assistance to local educational agencies that benefit dependents of 
        members of the armed forces and Department of Defense civilian 
        employees (sec. 1074)
      The House bill contained a provision (sec. 394) that 
would authorize the appropriation of $58.0 million for 
assistance to local educational agencies in areas where there 
is an impact to school systems caused by dependents of members 
of the armed forces and Department of Defense (DOD) civilians.
      The Senate amendment contained a provision (sec. 387) 
that would prohibit the Secretary of Education from considering 
payments to a local educational agency from DOD funds when 
determining the amount of impact aid to be paid from Department 
of Education funds. Additionally, the recommended provision 
would make technical changes to the previous year 
authorizations of impact aid.
      The conferees agree to combine and clarify the two 
provisions and to change the authorized funding to $35.0 
million.
Sharing of personnel of Department of Defense domestic dependent 
        schools and defense dependents' education system (sec. 1075)
      The Senate amendment contained a provision (sec. 335) 
that would authorize the Secretary of Defense to direct the 
sharing of personnel resources between the Department of 
Defense Overseas School System and the Defense Dependents' 
Education System, and to provide other support services to 
either system, for a period to be prescribed by the Secretary.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Increase in reserve component Montgomery GI Bill educational assistance 
        allowance with respect to skills or specialties for which there 
        is a critical shortage of personnel (sec. 1076)
      The House bill contained a provision (sec. 553) that 
would authorize increased rates of educational assistance 
allowance for reserve members with specialties or skills in 
which there are critical shortages.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would expand 
the authority to include certain former active duty personnel 
with critical specialties or skills who become members of a 
selected reserve unit.
Date for annual report on reserve component Montgomery GI Bill 
        educational assistance program (sec. 1077)
      The Senate amendment contained a provision (sec. 1035) 
that would change the date on which the annual report on 
selected reserve educational assistance program is due to the 
Congress, from December 15 to March 1 of each year.
      The House bill contained no similar provision.
      The House recedes.
Scope of the education programs of Community College of the Air Force 
        (sec. 1078)
      The Senate amendment contained a provision (sec. 1034) 
that would amend section 9315 of title 10, United States Code, 
to limit the scope of the Community College of the Air Force 
(CCAF) to Air Force personnel.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees do not consider expanding the CCAF as an 
appropriate means of establishing a defense-wide community 
college. If the Secretary of Defense believes that 
establishment of a defense-wide community college is 
appropriate, he should forward such a recommendation, complete 
with justification, to the Congress.
Amendments to education loan repayment programs (sec. 1079)
      The House bill contained a provision (sec. 554) that 
would authorize the repayment of loans that were made under the 
William D. Ford Federal Direct Loan Program.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                       Subtitle H--Other Matters

Termination and modification of authorities regarding national defense 
        technology and industrial base, defense reinvestment, and 
        defense conversion programs (sec. 1081)
      The House bill contained a provision (sec. 1031) that 
would repeal portions of chapter 148 of title 10, United States 
Code, that would establish authorities similar to those 
provided elsewhere in law.
      The Senate amendment contained a similar provision (sec. 
221).
      The conferees agree to a provision that would adopt both 
House and Senate provisions, with an amendment. The conferees 
have included a provision that would repeal subsection 2501 (b) 
and sections 2512, 2513, 2516, 2520, 2521, 2522, 2523, and 2524 
of title 10, United States Code. The provision would also amend 
section 2525 of title 10, United States Code, by adding a 
series of guidelines to the requirement for the preparation of 
the manufacturing science and technology master plan. Finally, 
the conferees have included language that would modify the 
defense dual-use critical technology program authorized by 
section 2511 of title 10, United States Code. In using the 
authority under this section, the conferees expect the 
Secretary of Defense to give equal consideration to the 
development of both product and process technologies.
Ammunition industrial base (sec. 1082)
      The Senate amendment contained a provision (sec. 823) 
that would require the Secretary of Defense to review 
ammunition procurement and management programs and report the 
findings to the congressional defense committees by April 1, 
1996.
      The House bill contained no similar provision.
      The House recedes.
Policy concerning excess defense industrial capacity (sec. 1083)
      The House bill contained a provision (sec. 1033) that 
would prohibit the use of appropriated funds for capital 
investment in, or the development and construction of, a 
government-owned, government-operated defense industrial 
facility unless the Secretary of Defense certifies to Congress 
that no similar capability or minimally used capability exists 
in another similar facility.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment.

Sense of Congress concerning access to secondary school student 
        information for recruiting purposes (sec. 1084)

      The Senate amendment contained a provision (sec. 1091) 
that would express the sense of the Senate that educational 
institutions, including secondary schools, should not deny 
military recruiters the same access to their campuses and 
directory information that is allowed other employers.
      The House bill contained no similar provision.
      The House recedes with an amendment expressing the sense 
of Congress.

Disclosure of information concerning unaccounted for United States 
        personnel from the Korean Conflict, the Vietnam Era and the 
        Cold War (sec. 1085)

      The conference agreement includes a provision that would 
modify section 1082 of the National Defense Authorization Act 
for Fiscal Years 1992 and 1993 (Public Law 102-190) to change 
the criteria under which limitations to disclosure of 
information concerning United States personnel classified as 
prisoner of war or missing in action during the Vietnam 
conflict would not apply and to change the date by which a 
report is required to be delivered to the Congress.

Operational support airlift aircraft fleet (sec. 1086)

      The Senate amendment contained a provision (sec. 1099E) 
that would require the Secretary of Defense to submit a Joint 
Chiefs of Staff report on operational support aircraft (OSA) to 
the congressional defense committees, and to reduce the flying 
hours of such aircraft in fiscal year 1996.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to examine central scheduling and management of 
such aircraft in the report.
      The conferees believe that the review of OSA operations 
should focus on savings and scheduling rationalization. The 
conferees believe that the Department of Defense can achieve 
efficiencies by revamping the current OSA program, and have 
included a reduction in OSA flying hours for fiscal year 1996 
in this provision.
      While prior studies of OSA organization have recommended 
realigning OSA management, the conferees refrain from directing 
the Department to make specific organizational changes at this 
time.

Civil Reserve Air Fleet (sec. 1087)

      The House bill contained a provision (sec. 387) that 
would clarify the conditions under which a contractor under the 
Civil Reserve Air Fleet program is required to commit aircraft 
for use by the Department of Defense.
      The Senate amendment contained a similar provision (sec. 
814).
      The House recedes.
Damage or loss to personal property due to emergency evacuation or 
        extraordinary circumstances (sec. 1088)
      The Senate amendment contained a provision (sec. 1087) 
that would provide for an increased level of reimbursement for 
claims that arise from emergency evacuations or extraordinary 
circumstances. The new limits would be retroactive to June 1, 
1991.
      The House contained no similar provision.
      The House recedes with an amendment that would provide 
for retroactive application of the increased level of 
reimbursement when certain conditions are met.
Authority to suspend or terminate collection actions against deceased 
        members (sec. 1089)
      The Senate amendment contained a provision (sec. 1086) 
that would amend section 3711 of title 31, United States Code, 
to authorize the Secretary of Defense to suspend or terminate 
collection action against the estates of service members who 
die on active duty while indebted to the government.
      The House bill contained no similar provision.
      The House recedes.
Check cashing and exchange transactions for dependents of United States 
        Government personnel (sec. 1090)
      The Senate amendment contained a provision (sec. 1088) 
that would authorize United States disbursing personnel to 
extend check-cashing and currency exchange services to the 
dependents of military and civilian personnel at government 
installations that do not have adequate banking facilities.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
National Maritime Center (sec. 1091)
      The Senate amendment contained a provision (sec. 1099D) 
that would designate the Nauticus building, located at one 
Waterside Drive, Norfolk, Virginia, as the National Maritime 
Center.
      The House bill contained no similar provision.
      The House recedes.
Sense of Congress regarding historic preservation of Midway Islands 
        (sec. 1092)
      The Senate amendment contained a provision (sec. 1099b) 
that would express the sense of the Senate that Midway Island 
be memorialized and the historic structures relating to the 
Battle of Midway be maintained in accordance with the National 
Historic Preservation Act.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make the 
provision a Sense of the Congress.
Sense of the Senate regarding federal spending (sec. 1093)
      The Senate amendment contained a provision (sec. 1095) 
that would express a sense of the Senate regarding federal 
spending.
      The House bill contained no similar provision.
      The House recedes.

Extension of authority for vessel war risk insurance (sec. 1094)

      The conferees agree to a new provision that would amend 
section 1214 of the Merchant Marine Act, 1936 (46 App. U.S.C. 
1294) to extend the Secretary of Transportation's authority to 
provide insurance against loss or damage as a result of marine 
war risks from June 30, 1995 to June 30, 2000. The conferees 
acknowledge the cooperation of the Committee on Commerce, 
Science, and Transportation of the Senate, the committee of 
jurisdiction in the Senate, for permitting inclusion of this 
important authority in the National Defense Authorization Act 
for Fiscal Year 1996.

                   legislative provisions not adopted

Application of Buy America Act principles

      The House bill contained a provision (sec. 1035) that 
would apply Buy American principles to reciprocal defense 
procurement memoranda of understanding with other countries.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that section 849 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
160) contains identical language that is the operative law in 
this area.

Repeal of requirements for part-time career opportunity employment 
        reports

      The Senate amendment contained a provision (sec. 339) 
that would eliminate the requirement in section 3407 of title 
5, United States Code, that agencies provide progress reports 
on the part-time career employment program.
      The House bill contained no similar provision.
      The Senate recedes.

Holidays for employees whose basic work week is other than Monday 
        through Friday

      The Senate amendment contained a provision (sec. 342) 
that would amend section 6103(b)(2) of title 5, United States 
Code, to authorize agencies some discretion in designating 
holidays for employees whose basic work week is other than 
Monday through Friday.
      The House bill contained no similar provision.
      The Senate recedes.
Assistance to Customs Service
      The Senate amendment included a provision (sec. 1023) 
that would authorize the Department of Defense to procure or 
transfer funds to the Customs service for procurement of non-
intrusive inspection devices for use at the ports of entry on 
the southwest border of the United States.
      The House bill contained no similar provision.
      The Senate recedes. The conferees agree, as stated 
elsewhere in this statement of managers, to urge the Secretary 
of Defense to procure non-intrusive inspection devices with 
funds available through reprogramming procedures.
Establishment of Junior ROTC units in Indian reservation schools
      The Senate amendment contained a provision (sec. 1036) 
that would express the Sense of the Congress that secondary 
schools on Indian reservations be afforded full opportunity to 
be selected as locations for establishing new Junior Reserve 
Officers' Training Corps units.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree that current law affords full 
opportunity for secondary schools on Indian reservations to be 
selected as locations for establishing new Junior Reserve 
Officers' Training Corps units.
Defense cooperation between the United States and Israel
      The Senate amendment contained a provision (sec. 1055) 
that would express the Sense of Congress for continued 
cooperation between the United States and Israel in military 
and technical areas.
      The House bill contained no similar provision.
      The Senate recedes. The conferees note that a provision 
virtually identical to that contained in the Senate amendment 
exists in the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337). The conferees recognize the 
numerous benefits to the United States resulting from our 
strategic relationship with Israel. The conferees strongly 
commend the United States' continuing commitment to maintaining 
Israel's qualitative edge over any combination of adversaries. 
Despite the great progress made in the Middle East peace 
process, Israel continues to face an unstable and highly 
dangerous environment, compounded by the proliferation of 
weapons of mass destruction and ballistic missiles.
International military education and training
      The Senate amendment contained a provision (sec. 1058) 
that would, subject to the provisions of the Foreign Assistance 
Act of 1961, grant discretionary authority to the Secretary of 
Defense to provide up to $20.0 million for the provision of 
international military education and training (IMET) for 
countries allied and friendly with the United States.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees strongly support Department of Defense 
funding for and management of the IMET program. IMET is a 
unique military program that fosters military-to-military 
relationships and contributes to greater inter-operability and 
coalition-building with the military organizations of allied 
and friendly nations. IMET has suffered in recent years from 
being part of the State Department's budget which has become 
increasingly unpopular with the American public and their 
elected representatives. The conferees are pleased to note, 
however, that the Foreign Operations Appropriations Conference 
Report for Fiscal Year 1996 fully funds the administration's 
IMET request.
      The conferees intend to address this matter next year 
with a view towards transferring budgetary and execution 
responsibility for IMET to the Department of Defense. 
Accordingly, the conferees encourage the Secretary of Defense 
and the Secretary of State to work out a process for such a 
transfer to ensure smooth and effective functioning with robust 
future funding.
Sense of the Senate on protection of United States from ballistic 
        missile attack
      The Senate amendment contained a provision (sec. 1062) 
that would express the Sense of the Senate that all Americans 
should be protected from accidental, intentional, or limited 
ballistic missile attack, and that front line troops of the 
United States should be protected from missile attacks. The 
Senate provision would also provide funding for the Corps 
surface-to-air missile (SAM) program.
      The House bill contained no similar provision.
      The Senate recedes. Although the conferees fully support 
the views expressed in the Senate provision, they believe that 
such views are adequately represented elsewhere in the 
conference report. The conferees also address the Corps SAM 
issue elsewhere in the conference report.
Travel of disabled veterans on military aircraft
      The Senate amendment contained a provision (sec. 1089) 
that would permit veterans eligible for compensation for a 
service-connected disability the same entitlement to space-
available transportation as retired members of the Armed 
Forces.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note the unreliable nature of space-
available flight, and that such flights would normally involve 
cargo-type aircraft, which are not equipped for handicapped 
access, seating and care. The conferees agree that concerns for 
the safety of disabled veterans were overriding in this 
decision.
Transportation of crippled children in the Pacific Rim region to Hawaii 
        for medical care
      The Senate amendment contained a provision (sec. 1090) 
that would authorize the Secretary of Defense to permit space-
available transportation of crippled children in the Pacific 
Rim region to Hawaii for medical care in non-military medical 
facilities.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees direct the Secretary of Defense to conduct 
a study, consulting with the Shriners Hospitals in the Pacific 
region, to determine the viability and potential liabilities of 
such a program. The report should be provided to the Senate 
Committee on Armed Services and the House Committee on National 
Security not later than May 1, 1996.
Sense of Senate regarding Ethics Committee investigations
      The Senate amendment contained a provision (sec. 1094) 
expressing the Sense of the Senate concerning proceedings 
before the Senate Ethics Committee with respect to Senator 
Packwood.
      The House bill contained no similar provision.
      The Senate recedes.

               Title XI--Uniform Code of Military Justice

                         LEGISLATIVE PROVISIONS

                     LEGISLATIVE PROVISIONS ADOPTED

References to Uniform Code of Military Justice (sec. 1102)

      The House bill contained a provision (sec. 541) that 
would clarify references to the Uniform Code of Military 
Justice in the bill.
      The Senate amendment contained an identical provision 
(sec. 521).
      The conference agreement includes this provision.

                          Subtitle A--Offenses

Refusal to testify before courts-martial (sec. 1111)

      The Senate amendment contained a provision (sec. 524) 
that would provide Federal District Courts the same power to 
punish individuals who fail to appear at courts-martial as they 
currently have to punish individuals who do not appear in 
civilian cases.
      The House bill contained no similar provision.
      The House recedes.

Flight from apprehension (sec. 1112)

      The House bill contained a provision (sec. 544) that 
would make it clear that the offense of ``resisting 
apprehension'' under Article 95 of the Uniform Code of Military 
Justice includes flight from apprehension.
      The Senate amendment contained an identical provision 
(sec. 531).
      The conference agreement includes this provision.

Carnal knowledge (sec. 1113)

      The Senate amendment contained a provision (sec. 532) 
that would amend Article 120(b) of the Uniform Code of Military 
Justice (10 U.S.C. 920 (b)) by making the crime of carnal 
knowledge gender neutral, bringing Article 120 into conformance 
with the Sexual Abuse Act of 1986. The provision also would add 
an affirmative defense of mistake of fact to conform Article 
120 to federal civilian law (18 U.S.C. 2243).
      The House bill contained a similar provision (sec. 545).
      The House recedes.

                         Subtitle B--Sentences

Effective date for forfeitures of pay and allowances and reductions in 
        grade by sentence of court-martial (secs. 1121 and 1122)

      The Senate amendment contained provisions (secs. 526(a) 
and 526(b)) that would require those portions of a court-
martial sentence extending to forfeiture of pay and allowances 
or reduction in grade to be effective 14 days after the date 
the sentence is adjudged or upon approval by the convening 
authority, whichever occurs earlier. The amendment would also 
require that sentences containing a punitive discharge, death, 
or more than 6 months confinement, result in total forfeitures 
of pay and allowances. If an accused were to make application 
to the convening authority, the forfeitures of pay and 
allowances, or reduction in grade or both could be deferred 
until the date on which the sentence is approved. Also under 
this provision, when convening authorities take action on 
sentences, any or all of the forfeitures of pay and allowances 
to be forfeited could be used to provide transitional 
compensation for the dependents of the accused.
      The House bill contained a similar provision (sec. 542).
      The House recedes with an amendment which would apply the 
automatic forfeitures to a sentence of death, punitive 
discharge, or confinement in excess of six months. The 
forfeiture in the case of a special court-martial would be 
limited to two-thirds of the pay due, which is the maximum 
punishment limitation of a special court-martial.

Deferment of confinement (sec. 1123)

      The Senate amendment contained a provision (sec. 527) 
that would allow for the deferment of confinement adjudged by 
courts-martial in two situations beyond those authorized under 
current law. One would permit deferment of confinement while 
the case is being reviewed by the United States Court of 
Appeals for the Armed Forces under Article 67(a)(2). The other 
circumstance that would lead to deferment concerns individuals 
who are serving civilian confinement while they have a sentence 
pending that has been adjudged by a court-martial. The Senate 
amendment would defer the running of the court-martial sentence 
until completion of the civilian sentence, if the convening 
authority so directs.
      The House bill contained no similar amendment.
      The House recedes.

              Subtitle C--Pretrial and Post-Trial Actions

Article 32 investigations (sec. 1131)

      The Senate amendment contained a provision (sec. 523) 
that would revise the procedures for authorizing investigation 
of misconduct uncovered during a pretrial investigation under 
Article 32 of the Uniform Code of Military Justice.
      The House bill contained no similar provision.
      The House recedes. Under Article 32 of the Uniform Code 
of Military Justice, a formal pretrial investigation is 
conducted when a court-martial convening authority refers 
charges to an Article 32 investigating officer. Under current 
law, if the Article 32 officer uncovers evidence of additional 
misconduct in the course of the investigation, the information 
must be provided to the convening authority and then referred 
back to the Article 32 officer before it can be investigated by 
the Article 32 investigating officer.
      The conferees agree that current law should be changed to 
permit the investigating officer to investigate new misconduct 
uncovered during the Article 32 investigation without requiring 
further administrative action by the convening authority. This 
change should reduce the time, delay, and administrative burden 
associated with obtaining the convening authority's approval 
for investigation of additional misconduct. The conferees 
emphasize, however, that the additional misconduct may not be 
investigated under Article 32 unless the accused is afforded 
the same rights as under current law with respect to 
investigation of the charges, presentation of evidence in 
defense or mitigation, and cross-examination as apply to the 
charges that were the basis of the Article 32 investigation.

Submission of matters to the convening authority for consideration 
        (sec. 1132)

      The Senate amendment contained a provision (sec. 528) 
that would require all post-trial material submitted to the 
convening authority by the accused to be in writing. Current 
law does not specify the medium for such submissions.
      The House bill contained no similar provision.
      The House recedes. The conferees agree that the intent of 
this section is not to restrict the accused's communications 
with the convening authority, but to ensure that formal 
submissions under Article 60(b) are made through a standard 
medium. The convening authority, in his or her discretion, may 
take into consideration other communications by the accused, 
such as a personal appearance or a videotape. The convening 
authority, however, is not required to review such other 
matters under Article 60, and a convening authority's decision 
to refuse consideration of matters other than written 
submissions is not subject to review. The conferees direct the 
Secretary of Defense to ensure that the explanatory 
``Discussion'' accompanying the Manual for Courts-Martial 
reflect that this amendment does not restrict the ability of 
the convening authority to consider communications from the 
accused that are not written submissions.

Commitment of accused to treatment facility by reason of lack of mental 
        capacity or mental responsibility (sec. 1133)

      The Senate amendment contained a provision (sec. 525) 
that would establish procedures for handling individuals who 
are mentally incompetent to stand trial or found not guilty by 
reason of lack of mental responsibility.
      The House bill contained no similar provision.
      The House recedes.
      This provision is in no way intended to conflict with 
Rule 706 of the Rules for Courts-Martial. To the extent that 
there is a provisions overlap, section 706 should be reviewed 
to make certain that it conforms with the new provision.

                     Subtitle D--Appellate Matters

Appeals by the United States (sec. 1141)

      The Senate amendment contained a provision (sec. 530) 
that would apply to courts-martial the same protections with 
regard to classified information as apply to orders or rulings 
issued in Federal District Courts under the Classified 
Information Procedures Act (18 U.S.C. App. 7). This section 
incorporates Senate amendment section 522 concerning certain 
definitions.
      The House bill contained no similar provision.
      The House recedes with an amendment.

Repeal of termination of authority for Chief Justice of United States 
        to designate Article III judges for temporary service on Court 
        of Appeals for the Armed Forces. (sec. 1142)

      The House bill contained a provision (sec. 549) that 
would make permanent the authority of the Chief Justice of the 
United States to fill temporary vacancies on the United States 
Court of Appeals for the Armed Forces. Section 1301 of the 
National Defense Authorization Act for Fiscal Years 1990 and 
1991 authorized the Chief Judge of the United States Court of 
Appeals for the Armed Forces to request the Chief Justice to 
make such appointments through September 30, 1995. This 
provision would eliminate the ``sunset'' provision.
      The Senate amendment contained a similar provision (sec. 
535).
      The Senate recedes.

                       Subtitle E--Other Matters

Advisory committee on criminal law jurisdiction over civilians 
        accompanying the Armed Forces in time of armed conflict (sec. 
        1151)

      The Senate amendment contained a provision (sec. 536) 
that would create an advisory panel to determine which courts 
should have criminal jurisdiction over civilians accompanying 
the military outside the United States during times of armed 
conflict, including conflicts other than a declared war.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Time after accession for initial instruction in the Uniform Code of 
        Military Justice (sec. 1152)

      The House bill contained a provision (sec. 546) that 
would increase the time after accession for initial instruction 
in the Uniform Code of Military Justice.
      The Senate amendment (sec. 533) contained an identical 
provision.
      The conference agreement includes this provision.

Technical amendment (sec. 1153)

      The House bill contained a provision (sec. 550) that 
would amend article 66(f) of the Uniform Code of Military 
Justice (10 U.S.C. 866) by striking out ``Courts of Military 
Review'' in both places it appears, and inserting in lieu 
thereof ``Courts of Criminal Appeals.''
      The Senate amendment contained an identical provision 
(sec. 534).
      The conference agreement includes this provision.

                   legislative provisions not adopted

Persons who may appear before the United States Court of Appeals for 
        the Armed Forces

      The House bill contained a provision (sec. 547) that 
would provide that only attorneys and properly certified law 
students could practice and appear before the United States 
Court of Appeals for the Armed Forces.
      The Senate amendment contained no similar provision.
      The House recedes. The conferees believe that the 
question of who should be authorized to appear before the Court 
of Appeals for the Armed Forces normally should be addressed 
through the rules promulgated by the court, rather than through 
legislation. The conferees are concerned, however, that the 
Court has permitted undergraduate students to appear before the 
Court as amicus curiae. However laudable it may be to afford 
such students practical experience appearing before a federal 
court, the conferees believe such considerations are outweighed 
by the requirement that the Court of Appeals for the Armed 
Forces maintain the highest standards of judicial practice and 
procedure. The conferees are aware that the Court presently has 
this matter under review and look forward to a change in the 
Court's rules of procedure that will obviate the need for 
legislation on this subject.

Discretionary representation by government appellate defense counsel in 
        petitioning the Supreme Court for writ of certiorari

      The House bill contained a provision (sec. 548) that 
would amend section 870 of title 10, United States Code, to 
provide that representations of an accused, in the preparation 
of a petition for a writ of certiorari before the United States 
Supreme Court, shall be at the discretion of military appellate 
defense counsel. Current law requires appellate defense counsel 
to represent the accused before the Supreme Court when 
requested by the accused.
      The Senate amendment contained no similar provision.
      The House recedes.

Proceedings in revision

      The Senate amendment contained a provision (sec. 529) 
that would authorize a proceeding in revision at courts-martial 
prior to authentication of the record under certain conditions.
      The House bill contained no similar provision.
      The Senate recedes.

 Title XII--Cooperative Threat Reduction With States of Former Soviet 
                                 Union

                         legislative provisions

                     legislative provisions adopted

Cooperative threat reduction program (secs. 1201-1209)

      The budget request included $371.0 million in defense 
operation and maintenance for the Cooperative Threat Reduction 
(CTR) Program.
      The House bill contained provisions (secs. 1101-1108) 
related to the CTR program that would include the following: 
authorize $200.0 million for the CTR program, a $171.0 million 
reduction to the budget request (sec. 1101); place specific 
limitations on all CTR programs for fiscal year 1996 (sec. 
1102); repeal authority for the Demilitarization Enterprise 
Fund (DEF) (sec. 1103); prohibit the use of CTR funds for 
peacekeeping exercises and related activities with Russia (sec. 
1104); revise authority for assistance for weapons destruction 
(sec. 1105); require prior notice of obligation of funds (sec. 
1106); require an annual accountability report to ensure that 
assistance is being used for its intended purpose (sec. 1107); 
and prohibit the obligation or expenditure of fiscal year 1996 
funds until the President provides written certification to 
Congress that Russia has terminated its offensive biological 
weapons program.
      The Senate amendment included several provisions (sec. 
1041-1044) related to the CTR program that would include the 
following: authorize $365.0 million for the CTR program, a $6.0 
million reduction to the budget request (sec. 1041); limit the 
obligation of CTR funds that would assist nuclear weapons 
scientists in the former Soviet Union, pending a written 
certification from the Secretary of Defense that funds would 
not contribute to the modernization of strategic nuclear forces 
or for research, development or production of weapons of mass 
destruction (sec. 1042); limit the obligation of $50.0 million, 
pending a written certification from the President that Russia 
is in compliance with its obligations under the Biological 
Weapons Convention (BWC); and limit the use of more than $52.0 
million of fiscal year 1996 funds available for CTR, pending a 
presidential certification that a joint laboratory study to 
evaluate the Russian neutralization proposal has been completed 
and the United States agrees with that proposal, that Russia is 
in the process of preparing a comprehensive destruction and 
dismantlement plan for its chemical weapons stockpile, and that 
Russia is committed to resolving outstanding issues under the 
1989 Wyoming Memorandum of Understanding and the 1990 Bilateral 
Destruction Agreement.
      The conferees agree to the CTR provisions, as follows: 
authorize $300.0 million in fiscal year 1996 for CTR and place 
limitations on the CTR projects in fiscal year 1996; provide 
authority for individual limitations to be exceeded by a 
specified percentage; authorize use of CTR funds to reimburse 
pay accounts for U.S. military reserve members participating in 
CTR activities; prohibit the use of CTR funds for peacekeeping 
activities and related activities with Russia; require a 
presidential determination that each recipient country is 
observing the criteria for assistance provided under the CTR 
program; require the Secretary of Defense to provide 
congressional defense committees with advance notification of 
obligation of funds; require an annual audit and examination 
report; limit assistance to nuclear weapons scientists; and 
limit the obligation of $60.0 million in fiscal year 1996 CTR 
funds for Russia, pending presidential certification that 
Russia is complying with its BWC obligations and that Russia 
has agreed to, and implemented, agreements and visits per the 
September 14, 1992 Joint Statement on Biological Weapons and 
that visits to the four declared military biological facilities 
of Russia by officials of the U.S. and United Kingdom have 
occurred. If the President is unable to certify Russian 
compliance with its BWC obligations, or that visits agreed to 
under the Joint Statement have not occurred, he may certify 
that fact and related funds would then be available for 
strategic offensive weapons elimination in Ukraine, Kazakhstan 
or Belarus. The provision would also prohibit obligation of 
more than half the funds authorized for chemical weapons 
destruction-related activities in Russia, pending a 
presidential certification.
      The conferees direct that none of the funds authorized 
for CTR in fiscal year 1996 may be used to reimburse other 
departments and agencies for the travel and other expenses 
incurred by employees of those departments and agencies, even 
if those employees are engaged in CTR-related activities.
      The Conventional Forces in Europe (CFE) Treaty requires 
signatories to be in full compliance with their obligations to 
reduce treaty limited equipment by November 16, 1995. The 
Russian government has generally been in overall compliance 
with its obligations since the treaty has been in force 
provisionally. Russia's compliance with the limits in the 
northern and southern flank zones has caused concern for a 
number of the signatories. Russian officials have indicated 
that they will not be in compliance with the flank limits in 
these zones because of the instability along their southern 
borders.
      If Russia refuses to honor its legal and political 
obligations under the CFE Treaty, the conferees question the 
ability of the President to certify Russia's commitment to 
complying with its arms control obligations, necessary to make 
it eligible to receive CTR assistance. Further, the conferees 
believe that the President would only be in a position to 
certify Russia's commitment to comply with its arms control 
obligations under the following circumstances: (1) through an 
agreement to comply with a NATO-endorsed flank limit proposal 
and substantial progress toward withdrawing any excess 
equipment by the May 1996 Treaty Review Conference; (2) 
demonstrated fulfillment of obligations to meet agreed-upon 
reductions in levels of military equipment in the naval 
infantry and coastal defense forces, and in holdings east of 
the Ural mountains; and (3) through an agreement on an offset 
package that would add to the flank limit proposal additional 
verification measures, additional information sharing 
arrangements on the flank areas, and additional constraints on 
Treaty-limited equipment contained in areas formerly defined as 
flank areas.

             Title XIII--Matters Relating to Other Nations

                       Items of Special Interest

Waiver of foreign assistance reimbursement requirements to the 
        Department of Defense and the armed forces

      The conferees are concerned about the inadequate funding 
in the fiscal year 1996 international affairs budget for 
activities identified by the administration as presidential 
priorities, such as drawdown authority for defense articles and 
services for Jordan and the transfer of non-lethal defense 
articles to Central European countries.
      While the conferees are generally supportive of both 
activities, the conferees do not support efforts to waive 
requirements under Sections 519(f) and 632(d) of the Foreign 
Assistance Act of 1961. Those provisions of the Foreign 
Assistance Act require reimbursement of the Department of 
Defense and military services for costs to transport defense 
articles, or replace defense items that are not excess to the 
military services.
      The conferees appreciate the role that Jordan played in 
the Middle East peace process and believe that the Government 
of Jordan should have the defense items, services, and military 
training, that would enable them to protect their borders and 
respond to terrorist threats. However, the conferees are 
concerned by the use of defense funds to pay for this 
authority.
      In a letter supporting the special drawdown authority for 
Jordan, the Secretary of Defense stated that military readiness 
would suffer unless the non-excess defense items are replaced 
and the military services are reimbursed for transportation and 
other costs. The conferees direct the Secretary of Defense to 
provide a report to the congressional defense committees 60 
days after enactment of this Act that would address the cost to 
replace non-excess defense items provided to Jordan and an 
identification of funds included in the President's fiscal year 
1997 budget for this purpose.

                         legislative provisions

                     legislative provisions adopted

                  Subtitle A--Peacekeeping Provisions

Limitation on use of Department of Defense funds for international 
        peacekeeping assessments and drawdown of Department of Defense 
        articles (sec. 1301)

      The House bill contained a provision (sec. 1202) that 
would amend chapter 20 of title 10, United States Code, to 
prohibit the use of Department of Defense funds for voluntary 
or assessed financial contributions to the United Nations for 
the United States share of peacekeeping costs, effective 
October 1, 1995.
      The Senate amendment contained no similar provision.
      The Senate recedes.

              Subtitle B--Humanitarian Assistance Programs

Overseas humanitarian, disaster, and civic aid (secs. 1311-1312)

      The House bill contained a provision (sec. 1211) that 
would specify five programs operated by the Department of 
Defense to be funded through the budget account known as 
Overseas Humanitarian, Disaster, and Civic Aid (OHDACA).
      The House bill also contained a provision (sec. 1212) 
that would eliminate the current authority to transfer funds 
from DOD to the Department of State to provide for the 
administrative costs associated with the transportation of 
humanitarian supplies. In addition, this provision would remove 
the Secretary of State's authority over the DOD's program for 
the transportation of humanitarian relief, and it would provide 
for technical changes to the existing reporting requirements 
for the DOD's humanitarian programs.
      The Senate amendment contained a provision (sec. 365) 
that would require the General Accounting Office (GAO) to 
submit a report to Congress on existing funding mechanisms that 
would facilitate the funding of programs within the OHDACA 
account through the Department of State or the Agency for 
International Development. If such mechanisms do not currently 
exist, the GAO would be required to identify those actions 
necessary to institute such mechanisms.
      The conference agreement includes these provisions.
      The conferees agree that although the DOD is uniquely 
capable of performing some humanitarian or disaster relief 
operations, these operations are fundamentally the 
responsibility of the Department of State and the Agency for 
International Development and, in general, are more 
appropriately funded through these agencies. Therefore, the 
conferees have reduced the amount of DOD funds available to the 
OHDACA account for fiscal year 1996 and have requested that the 
GAO provide a report that would identify necessary changes in 
existing law or regulations to transfer the funding 
responsibility for these programs, where appropriate, to other 
federal agencies, beginning in fiscal year 1997.

Landmine clearance program (sec. 1313)

      The House bill contained a provision (sec. 1213) that 
would amend humanitarian and civic assistance authorities in 
section 401 of title 10 United States Code to include 
humanitarian demining activities.
      The Senate amendment contained a provision (sec. 1054) 
that would amend section 1413 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337) to 
include the following: require the Secretary of Defense to 
certify to the Congress that humanitarian activities satisfy 
military training requirements for the personnel involved; 
authorize $20.0 million in fiscal year 1996 for the 
humanitarian landmine clearing assistance program; terminate 
authority for the Department of Defense to provide funds for 
the humanitarian landmine clearing assistance program after 
fiscal year 1996; and revise the definition of a landmine.
      The conferees agree to a provision that would amend 
section 401 of title 10 United States Code to include 
humanitarian demining activities; limit activities of United 
States military personnel participating in humanitarian 
landmine clearing activities; and, repeal section 1413 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337).
      Unlike other types of humanitarian and civic assistance 
activities, the conferees realize that the activities of 
detection and clearing of landmines will often be the sole or 
primary focus of the military operation in question. In such 
cases, the approving authority would have to determine that the 
specific operational readiness skills of the participating 
United States forces--usually special operations forces whose 
skills are based upon the activities listed in section 167(j) 
of title 10, United States Code--will be promoted by 
participation in those activities.

            Subtitle C--Arms Export and Military Assistance

Defense export loan guarantees (sec. 1321)

      The House bill contained a provision (sec. 1224) that 
would require the Secretary of Defense to create a defense 
export loan guarantee program for certain eligible countries.
      The Senate amendment contained a similar provision (sec. 
1053) with different criteria for eligible countries.
      The House recedes with an amendment that would authorize 
use of fees generated under the program for payment of start-up 
costs for administration of the program and for payment of 
ongoing administrative expenses. The conferees intend to 
monitor the administration of this program closely to ensure 
that the method of funding the administrative fees does not 
impact the process of approval of the loan guarantees.

National security implications of United States export control policy 
        (sec. 1322-1323)

      The Senate amendment contained a provision (sec. 1052) 
that would express the sense of Congress regarding the national 
security implications of maintaining effective export controls 
on dual-use items and technologies that are critical to the 
military capabilities of the United States. This provision 
would require the Department to review export licenses for 
class 2, 3, and 4 biological pathogens with a potential use in 
biological warfare programs and to determine if export would be 
contrary to U.S. national security interests.
      The House bill did not contain a similar provision.
      The House recedes. The conferees concur with concerns 
identified in the Senate report (S. Rept. 104-112) that the 
lowering of export controls on dual-use items and technologies 
may place current U.S. technologies and defense capabilities at 
risk. The conferees continue to be concerned with 
administration support for admittance of nations into the 
Missile Technology Control Regime (MTCR) and the New Forum 
absent a record of compliance with the spirit of these regimes 
prior to their inclusion.
      Two years ago in the House report (H. Rept. 103-357), the 
conferees expressed concern that ``. . . loosening the 
restrictions on space launch vehicle technology within the MTCR 
could, over time, result in the proliferation of offensive 
ballistic missiles . . .'' and expressed particular concern 
about the new MTCR members being permitted to retain space 
launch vehicle programs. Despite written administration 
assurances that Congress would be consulted on MTCR-related 
issues, to include the addition of new members, the conferees 
were disappointed to learn in the summer of 1995 that new 
countries would be admitted to the MTCR, despite retention of a 
SLV program and a history of evading program controls. The 
conferees believe that the current administration approach 
facilitates a growing and perhaps irreversible danger that the 
MTCR, despite its auspicious early history, will increasingly 
become an avenue for technology proliferation.
      The conferees strongly encourage the administration to 
emphasize the use of controls on sensitive technologies in any 
new administration proposals to reauthorize the Export 
Administration Act, and that no attempts be made to repeal or 
substantially alter the missile sanction provisions in Title 
XVII of the National Defense Authorization Act for Fiscal Year 
1991, as was the case in the administration proposal submitted 
in the last Congress.
      American firms are conducting discussions and 
negotiations with a number of foreign governments, or other 
entities, on the purchase of high-resolution U.S. commercial 
reconnaissance and imaging satellites and high-resolution 
imagery or imagery distribution systems. The conferees 
understand that the Secretary of Defense is authorized under 
Presidential Directive/National Security Council-23 and the 
Remote Sensing Act of 1992 to determine when national security 
interests call for controls on such satellite imagery. The 
Secretary of State is similarly empowered to determine when 
international obligations would require imagery controls. The 
conferees emphasize the following: that determinations on 
national security and international obligations should be 
communicated to U.S. firms in discussions regarding issuance of 
operating licenses to U.S. firms, to the extent such 
determinations can be made in advance of the actual operation 
of the satellites; that the Secretary of Defense or the 
Secretary of State should ensure that license agreements and 
distribution agreements include adequate provisions to ensure 
that the sharing of imagery or procurement of U.S. commercial 
imagery systems or products with foreign governments or foreign 
entities would not be used against U.S. military forces 
deployed overseas; and that provisions in the license 
agreements should deny terrorist governments and entities 
controlled by these governments access to imagery of 
neighboring countries. The conferees continue to be concerned 
that the national security issues involved in the proliferation 
of high-resolution satellites and satellite imagery have not 
been adequately thought through by the executive branch and 
hope that the report mandated by this section will serve to 
clarify DoD policy on these issues.
      The conferees also note the recent decision to relax 
export restrictions on supercomputers and are concerned about 
the potential impact of this decision on the United States' 
nonproliferation efforts and the maintenance of the U.S. 
military technological edge. The conferees direct the Secretary 
of Defense to submit a report, not later than December 31, 
1995, that describes the impact of the export decision on the 
ability of nations to acquire and use high-performance 
computing capabilities to develop advanced conventional 
weaponry, weapons of mass destruction, and delivery vehicles, 
including missiles.

Reports on arms export control and military assistance (sec. 1324)

      The Senate amendment contained a provision (sec. 1064) 
that would require the following reports to be submitted to 
Congress: (1) a report by the Secretary of State on the firms 
that are on the Department of State watch list for export of 
sensitive or dual use technologies, and a description of the 
measures taken to strengthen United States export controls; (2) 
an evaluation of the watch list screening process by the 
Department of State Inspector General; and (3) an annual report 
on the aggregate dollar value and quantity of defense articles, 
services, and military education and training furnished by the 
United States to each foreign country and international 
organization.
      The House bill did not contain a similar provision.
      The conferees agree to a provision that would require the 
Department of State and the Department of Commerce, in 
consultation with the Department of Defense, to report jointly 
to the Congress on United States export control mechanisms and 
measures taken to strengthen export controls. The provision 
would also require the President to submit a report to Congress 
on military assistance and military exports authorized or 
furnished to foreign countries and international organizations.

Report on personnel requirements for control of transfer of certain 
        weapons (sec. 1325)

      The Senate amendment contained a provision (sec. 1093) 
that would require the Secretary of Defense and the Secretary 
of Energy to report to the Congress on the personnel resources 
necessary to implement nonproliferation policy responsibilities 
of both departments and would require both Secretaries to 
explain the failure to provide the report, as previously 
required by legislation.
      The House bill did not contain a similar provision.
      The House recedes.

 Subtitle D--Burdensharing and Other Cooperative Activities Involving 
                            Allies and NATO

Accounting for burdensharing contributions (sec. 1331)

      The House bill contained a provision (sec. 1225) that 
would authorize the United States to accept burdensharing 
contributions in the currency of the host nation or in United 
States dollars. This provision would maintain this funding in a 
separate account that would be available until expended.
      The Senate bill contained no similar provision.
      The Senate recedes.

Authority to accept contributions for expenses of relocation within 
        host nations of United States armed forces overseas (sec. 1332)

      The House bill contained a provision (sec. 1226) that 
would establish authorization and procedures to accept 
contributions from host nations for the purpose of relocating 
United States armed forces within the host nation.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Revised goal for allied share of costs for United States installations 
        in Europe (sec. 1333)

      The House bill contained a provision (sec. 1228) that 
would require the Department of Defense to reduce United States 
military personnel assigned in European North Atlantic Treaty 
Organization (NATO) countries during fiscal years 1996-1999. 
Military personnel would be reduced by 1,000 for each scheduled 
percentage point that allied contributions in cash and in-kind 
payments fail to offset U.S. non-personnel costs of operating 
military installations in Europe.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment.
      The conferees agree to a provision that would amend 
section 1304 of the National Defense Authorization Act of 1995 
(Public Law 103-337) to require the President to seek an 
agreement with European member states of NATO to increase to 
42.5 percent by September 30, 1997 their share of the 
nonpersonnel costs for United States military installations in 
those nations.

Exclusion of certain forces from European end strength limitation (sec. 
        1334)

      The conference agreement includes a provision that would 
exclude personnel performing duties in Europe for more than 179 
days under a military-to-military contact program.

Cooperative research and development agreements with NATO organizations 
        (sec. 1335)

      The Senate bill contained a provision (sec. 1051) that 
would make a technical and conforming amendment to section 
2350b of title 10, United States Code, to make it consistent 
with section 2350a, which was amended in the National Defense 
Authorization Act for Fiscal Year 1995.
      The House bill did not contain a similar provision.
      The House recedes.

Support services for the Navy at the Port of Haifa (sec. 1336)

      The Senate amendment contained a provision (sec. 1056) 
that would express the sense of Congress that the Secretary of 
the Navy should promptly undertake actions to:
            (1) improve the services available to the Navy at 
        the Port of Haifa; and
            (2) ensure that the continuing increase in 
        commercial activities at the Port of Haifa does not 
        have an adverse impact on the services required by the 
        Navy at Haifa.
      The House bill contained no similar provision.
      The House recedes with an amendment.

                       Subtitle E--Other Matters

Prohibition on financial assistance to terrorist countries (sec. 1341)

      The Senate amendment contained a provision (sec. 1057) 
that would prohibit the use of any Department of Defense funds 
to assist nations that support acts of terrorism. A 
determination to prohibit funds may be based on a determination 
by the Secretary of State under section 6(j)(1)(A) of the 
Export Administration Act of 1979; or that a nation provided 
significant support for international terrorism, as identified 
in a report to Congress, pursuant to section 140 of the Foreign 
Relations Authorization Act, Fiscal Year 1988 and 1989; or a 
determination by the President that a nation has supported 
international terrorism or has granted sanctuary from 
prosecution to a group or individual that has committed an act 
of international terrorism.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Judicial assistance to the International Tribunal for Yugoslavia and to 
        the International Tribunal for Rwanda (sec. 1342)

      The Senate amendment contained a provision (sec. 1098) 
that would provide authority for the United States to surrender 
persons and provide judicial assistance to the International 
Tribunals for Yugoslavia and Rwanda, pursuant to the agreement 
between the Government of the United States and the 
International Tribunals.
      The House bill did not contain a similar provision.
      The House recedes with a technical amendment.

United States-China Joint Defense Conversion Commission (sec. 1343)

      The House bill included a provision (sec. 1223) that 
would prohibit the use of funds authorized in fiscal year 1996 
for the Department of Defense activities associated with the 
United States-People's Republic of China Joint Defense 
Conversion Commission.
      The Senate bill did not include a similar provision.
      The House recedes with an amendment.
      The conferees agree to a provision that would require the 
Secretary of Defense to submit semi-annual reports to Congress 
on the United States-People's Republic of China (PRC) Joint 
Defense Conversion Commission. The report shall include: a 
description of activities that could directly, or indirectly, 
assist the military modernization efforts of the PRC; 
information on the activities and operations of the Commission; 
a discussion of the relationship of PRC defense conversion 
activities and PRC defense modernization efforts; steps taken 
by the United States to safeguard against use of western 
technology to modernize the PRC military industrial base; and 
an assessment of U.S. benefits derived from participation in 
the commission, to include an increase in the transparency of 
the military budget and doctrine of the PRC. In preparing the 
reports required by this section, the Secretary shall seek and 
obtain the views of appropriate U.S. intelligence agencies and 
shall be consulted on the matters assessed in the reports and 
those views shall be included as an annex to the reports.
      The conferees agree that a continued dialogue on security 
matters between the United States and the PRC can promote 
stability in the region, and help protect American interests 
and the interests of America's Asian allies. The conferees note 
that the Senate Armed Services Committee and the House National 
Security Committee intend to review the status of the U.S.-PRC 
security dialogue on a regular basis to determine the extent to 
which the dialogue has produced tangible results in the areas 
of human rights, transparency in military spending and 
doctrine, missile and nuclear nonproliferation, and other 
important security issues.

                   legislative provision not adopted

Placement of United States forces under United Nations operational or 
        tactical control

      The House bill contained a provision (sec. 1201) that 
would limit the use of Department of Defense funds and the 
circumstances under which the President could commit U.S. armed 
forces to United Nations (UN) command and control, and provide 
exceptions under which armed forces could be placed under UN 
command and control. The President would be required to certify 
to the Congress, prior to the placement of U.S. armed forces 
under UN command and control, the following: that U.S. national 
security interests require the placement of Armed Forces under 
UN command and control; that U.S. armed forces commander would 
retain the right to report independently to U.S. military 
authorities and decline orders that are illegal, militarily 
imprudent, or beyond the scope of the mission; that U.S. forces 
would remain under U.S. administrative command; and that U.S. 
forces involved would retain the authority to withdraw and take 
necessary protective actions, if engaged by hostile forces.
      The Senate amendment contained a provision (sec. 1061) 
that would express the sense of Congress that: U.S. armed 
forces should not be placed under the operational control of 
the UN without close and prior consultation with Congress; U.S. 
armed forces should only be placed under UN command and control 
when clearly in the national interest; U.S. armed forces should 
only be placed under qualified commanders with clear and 
effective command and control; and that U.S. armed forces 
should only be placed under operational control of foreign 
commanders in peace enforcement missions, except in the most 
extraordinary circumstances.
      The conference agreement did not include either 
provision.
      The conferees remain gravely concerned over the 
administration's stated willingness, as articulated by 
Presidential Decision Directive 25, to place U.S. forces under 
UN operational control during peacekeeping operations. The 
conferees are pleased to note that the peacekeeping deployment 
to Bosnia does not involve such an arrangement. The conferees 
strongly urge the Secretary of Defense to ensure that clearly 
defined and effective command and control relationships are 
maintained for U.S. forces participating in this deployment.

                    Title XIV--Arms Control Matters

                         LEGISLATIVE PROVISIONS

                     legislative provisions adopted

Revision of definition of landmine for purposes of landmine export 
        moratorium (sec. 1401)

      The House bill contained a provision (sec. 1221) that 
would amend the definition of ``anti-personnel landmine'', 
contained in section 1423(d)(3) of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160), by 
deleting ``remote controlled, manually-emplaced munitions or 
devices''.
      The Senate amendment contained a provision (sec. 1054) 
that would include a subsection to redefine the definition of 
an antipersonnel landmine.
      The conferees agree to an amendment that would amend 
section 1423(d) of the National Defense Authorization Act for 
Fiscal Year 1994 (Public Law 103-160), to redefine an 
antipersonnel landmine to exclude command detonated anti-
personnel landmines, such as M18A1 ``Claymore'' mines, from the 
definition.

Reports on moratorium on use by Armed Forces of antipersonnel landmines 
        (sec. 1402)

      The Senate amendment contained a provision (sec. 1099) 
that would express the sense of Congress that the President 
should actively support proposals to modify protocol II on 
landmines in the 1980 Conventional Weapons Convention at the 
United Nations Conference, to immediately implement the United 
States goal of eventual elimination of antipersonnel landmines, 
and place a one year moratorium on the use of antipersonnel 
landmines by the United States military, except along 
internationally recognized borders and demilitarized zones. 
Consistent with the provision, the President should also 
encourage governments of other nations to implement a 
moratorium on the use of antipersonnel landmines.
      The House bill did not contain a similar provision.
      The House recedes with amendment.
      The conferees agree to a provision that would require the 
Chairman of the Joint Chiefs of Staff to provide an annual 
report to Congress on the projected effects of a moratorium on 
the defensive use of antipersonnel landmines and antitank mines 
by the United States military forces.
Extension and amendment of counterproliferation authorities (sec. 1403)
      The House bill contained a provision (sec. 1222) that 
would extend, through fiscal year 1996, the authorities in 
section 1505 of title XV of the National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102-484). The provision 
would authorize the Department of Defense to provide up to 
$15.0 million to support international nonproliferation 
activities, such as, the United Nations Special Commission on 
Iraq (UNSCOM). Authority for the Secretary of Defense to 
provide assistance under this section would terminate at the 
end of fiscal year 1996.
      The Senate bill contained no similar provision.
      The Senate recedes.
      The conferees understand that the extension of authority 
in fiscal year 1996 for the Department of Defense support of 
international nonproliferation activities would be used 
primarily to support the United Nations Special Commission on 
Iraq (UNSCOM). The conferees do not intend to provide the 
Department of Defense with authority to use defense funds to 
support chemical weapons and ballistic missile dismantlement, 
nuclear materials control and removal, or to destroy weapons of 
mass destruction and their delivery systems in foreign 
countries, such as Brazil, South Africa, or countries in Africa 
or the Middle East generally. These disarmament activities are 
more appropriately funded from the international affairs 
budget. Authorities for dismantlement of weapons of mass 
destruction in the former Soviet Union are provided elsewhere 
in this Act.
      In accordance with the conference report to accompany the 
National Defense Authorization Act for Fiscal Year 1994, the 
conferees direct the Secretary of Defense to provide to the 
congressional defense committees, 30 days in advance of any 
U.S. commitment to support international nonproliferation 
activities, a report on the international nonproliferation 
activities which the Department seeks to support. The report 
should identify potential future funding for this support, the 
extent to which the United States is obligated to provide such 
support, the extent to which funds are provided for in the 
international affairs budget, and the national security 
objective for providing the support.
Limitation on retirement or dismantlement of strategic nuclear delivery 
        systems (sec. 1404)
      The Senate amendment contained a provision (sec. 1082) 
that would express the sense of Congress that until the START 
II Treaty enters into force, the Secretary of Defense should 
not retire or dismantle any B-52H bombers, Trident ballistic 
missile submarines, Minuteman III intercontinental ballistic 
missiles (ICBMs), or Peacekeeper ICBMs. The provision would 
also prohibit the use of funds appropriated to the Department 
of Defense during fiscal year 1996 for retiring or dismantling 
any such systems.
      The House bill contained a similar provision (sec. 1229) 
that would express the sense of Congress that the Secretary of 
Defense should not implement any reduction in strategic forces 
that is called for in the START II Treaty unless and until that 
treaty enters into force.
      The House recedes.
      The conferees reiterate the importance of not having the 
United States unilaterally and prematurely begin to implement 
reductions under the START II Treaty. Until it is clear that 
the treaty will actually enter into force, the United States 
must retain options for maintaining a larger force of strategic 
nuclear delivery systems, to include 500 Minuteman III ICBMs, 
50 Peacekeeper ICBM's 18 Trident II ballistic missile 
submarines, and 94 B-52H bombers. The conferees believe that by 
retaining such options, the United States increases Russia's 
incentives to ratify and fully implement the START II Treaty.
      Additionally, the conferees believe that it is prudent to 
delay, beyond fiscal year 1996, the decision to retire or 
dismantle 28 B-52H bombers, as currently planned by the 
Department of Defense. At the same time, the conferees do not 
believe that the Air Force should take any action that prejudge 
a decision in fiscal year 1997 to retire or dismantle those 28 
B-52H bombers. Therefore, the conferees direct the Secretary of 
Defense to retain 94 B-52H bombers during fiscal year 1996, 
while minimizing additional expenditures on the 28 aircraft 
that may be retired in the near future.
      The conferees understood that the Air Force would require 
$17.4 million in procurement funds, $45.3 million in operations 
and maintenance funds, and $4.3 million in military personnel 
funds to retain the 28 B-52H bombers in a fully operational 
status and to provide them with system updates and 
modifications. The conferees believe that with system updates 
and modifications. The conferees believe that this level of 
funding may not be required merely to preserve the option of 
retaining the 28 aircraft for one more year. In particular, it 
may not be necessary to expand procurement funds on aircraft 
that may be retired in fiscal year 1997. Therefore, the 
conferees agree to authorize the use of up to $17.4 million in 
Air Force procurement funds, up to $45.3 million in Air Force 
operations and maintenance funds, and up to $4.3 million in Air 
Force personnel funds to retain in an attrition reserve status 
the 28 B-52H bombers that would otherwise be retired in fiscal 
year 1996.
Congressional findings and Sense of Congress concerning treaty 
        violations (sec. 1405)
      The House bill contained a provision (sec. 1227) that 
would express a sense of Congress that the government of the 
former Soviet Union intentionally violated its legal obligation 
under the 1972 Anti-Ballistic Missile Treaty in order to 
advance its national security interests, and that the United 
States should remain vigilant to ensure compliance with arms 
control obligations.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
outline the legislative history behind the provision.
Sense of Congress on ratification of the Chemical Weapons Convention 
        and the Strategic Arms Reduction Talks (sec. 1406)
      The House bill contained a provision (sec. 1230) that 
would express the sense of Congress that the United States 
should ratify the Chemical Weapons Convention (CWC) as a signal 
of its commitment to reduce the threat posed by chemical 
weapons.
      The Senate amendment contained a provision (sec. 1099F) 
that would express the sense of Congress that it is in the 
national security interests of the United States and Russia, as 
signatories of the Strategic Arms Reduction Talks (START II), 
and the United States and all parties to the Chemical Weapons 
Convention (CWC), to ratify and fully implement the agreements, 
as negotiated.
      The conferees agree to a provision that would express the 
sense of Congress that it is in the national security interests 
of the United States, that the United States and Russia, as 
parties to START II and the CWC, and all other signatories to 
the CWC, to ratify and fully implement these arms control 
agreements, as negotiated.
      The conferees note that a full Senate debate on the 
ratification of START and the CWC treaties has not taken place. 
It is not the intention of the Congress, through this 
provision, to predetermine the outcome of the Senate debate on 
the advice and consent to ratification of the two arms control 
treaties.

Implementation of arms control agreements (sec. 1407)

      The budget request included $261.9 million in 
procurement, operation and maintenance, and research and 
development in the defense and military service accounts for 
the implementation of arms control agreements.
      The Senate amendment contained a provision (sec. 1060) 
that would authorize $228.9 million for implementing arms 
control agreements, a $33.0 million reduction to the budget 
request. The provision would also prohibit the use of defense 
funds to reimburse expenses of signatories to arms control 
treaties, other than the United States, pursuant to treaties or 
agreements with the United States that have entered into force, 
if the Congress has not received 30-day notice prior to 
agreement between the parties.
      The House bill did not contain a similar provision, but 
would provide $261.9 million for implementation of arms control 
agreements.
      The House recedes with an amendment that would make 
available up to $239.9 million for implementing arms control 
agreements, a $22.0 million reduction to the budget request. 
The reductions are reflected in the following table. The 
conferees endorse the views stated in the Senate report (S. 
Rept. 104-112), that reiterate the concern expressed in the 
conference report accompanying the National Defense 
Authorization Act for Fiscal Year 1994 (H. Rept. 103-357). That 
conference report required the Congress to be notified 30 days 
in advance of a U.S. agreement to accept the recommendations of 
any consultative commissions that result in either technical 
changes to a treaty or agreement affecting inspections and 
monitoring provisions, or that result in increased U.S. 
implementation costs.
      The conferees limit the expenditure of funds to provide 
reimbursement for arms control implementation inspections costs 
borne by the inspected party to a treaty or agreement. Funds 
may only be expended if the Congress has been notified 30 days 
in advance of an agreement by the President to a policy or 
policy agreement, and that policy or policy agreement does not 
modify any obligation imposed by the arms control agreement.
      The provision would not prohibit the use of funds to 
implement two policy agreements under the Intermediate-Range 
Nuclear Forces (INF) Treaty and strategic Arms Reductions 
Treaty (START), concluded in May 1994 and February 1995. The 
conferees understand that the Department of Defense agreed to 
reimburse Belarus, Kazakhstan, and Ukraine for the costs of 
U.S. inspections conducted within those territories for each 
six-month period, expenses for which those countries are 
obligated under the treaties, if Belarus, Kazakhstan, and 
Ukraine do not conduct inspections in the United States. 
Further, the conferees understand that if Belarus, Kazakhstan, 
or Ukraine conduct an inspection of a U.S. facility, the U.S. 
will not provide reimbursement during the applicable six-month 
time period.
      The Intermediate Range Nuclear Forces Treaty and 
Strategic Arms Reduction Treaty permit the United States to 
conduct inspections to verify compliance with the treaties 
within the territories of Belarus, Kazakhstan, and Ukraine. The 
conferees are concerned about assertions by the administration 
that failure to reimburse Belarus, Kazakhstan, and Ukraine 
would prevent the United States from conducting INF and START 
inspections in these countries in the future. The Senate 
provided its advice and consent to ratification of INF and 
START based on the ability of the United States to fully 
exercise its inspection rights.
      In a September 21, 1994 letter from the Secretary of 
Defense to Congress, the Secretary emphasized that the policy 
statements exchanged between the United States and the three 
Parties expressed ``. . . strictly a policy understanding.'' He 
also stated ``that they are not legally binding'' and that no 
treaty provisions would be changed. Further, the Secretary 
stated ``[T]he Administration would not consider this to be a 
precedent for any other area of START implementation.''
      The conferees express their continuing concern that arms 
control consultative commissions are being used to facilitate 
changes or modifications to arms control treaties and 
agreements that should be brought to the Senate for its review 
and subsequent advice and consent. There may be very good 
reasons for changes in implementation of specific arms control 
treaties or agreements. However, if a change or modification to 
the treaty or agreement would result in a change to the 
understanding under which the Senate provided its advice and 
consent to ratification, the Congress must be consulted about 
the recommended change or modification in advance of any 
agreement in the consultative commissions, and must provide its 
subsequent agreement to the change or modification.

                               FISCAL YEAR 1996 ARMS CONTROL IMPLEMENTATION BUDGET                              
----------------------------------------------------------------------------------------------------------------
                   Account                                  Program               Request     Recomm    Rec Auth
----------------------------------------------------------------------------------------------------------------
WPN..........................................  Arms control compliance.........     14.800      0.000     14.800
OPAF.........................................  Spares & repairs................      0.467      0.000      0.467
PDA..........................................  OSIA............................      2.941      0.000      2.941
RDT&E, AF....................................  Arms control implementation.....      0.998      0.000      0.998
RDT&E, DA....................................  Ver tech dem, DNA (603711)......     33.971      0.000     33.971
O&M, Army....................................  ................................     40.778     -6.000     34.778
O&M, Navy....................................  ................................     35.354     -2.000     33.354
O&M, AF......................................  ................................     34.645     -2.000     32.645
O&M, DA......................................  OSIA............................     97.987    -12.000     85.987
                                                                                --------------------------------
    Total....................................  ................................    261.941    -22.000    239.941
----------------------------------------------------------------------------------------------------------------

Iran and Iraq arms nonproliferation (sec. 1408)
      The Senate amendment included a provision (sec. 1063) 
that would amend sections 1604(a) and 1605(a) of Title XVI of 
the National Defense Authorization Act for Fiscal Year 1993 
(Public Law 102-484), to apply sanctions and controls to 
persons or countries who transfer or retransfer goods or 
technology that would contribute to the Iran or Iraq efforts to 
acquire chemical, biological, or nuclear weapons, in addition 
to sanctions and controls on the acquisition of destabilizing 
advanced conventional weapons. The provision would also amend 
section 1608(7) to clarify the meaning of ``United States 
assistance'' to conform to the definition of such term in the 
Foreign Assistance Act of 1961 (section 2151 et seq. of Title 
10, United States Code).
      The House bill did not contain a similar provision.
      The House recedes with an amendment.
      The conferees also agree to an amendment to section 
73(e)(2) of the Arms Export Control Act (section 2797b(e)(2) of 
title 22, United States Code) that would require that the 
notification of certain waivers under the Missile Technology 
Control Regime procedures be submitted to the congressional 
defense committees and the congressional foreign relations 
committees, not less than 45 working days before issuance of 
the waiver.

              Title XV--Technical and Clerical Amendments

                         legislative provisions

                     legislative provisions adopted

Technical and clerical amendments (sec. 1501-1506)
      The Senate amendment contained eight sections (secs. 1101 
through 1108) that made numerous technical and clerical 
amendments to existing laws.
      The House bill contained no similar provision.
      The House recedes.

Title XVI--Corporation for the Promotion of Rifle Practice and Firearms 
                                 Safety

                         legislative provisions

                     legislative provisions adopted

Corporation for the Promotion of Rifle Practice and Firearms Safety 
        (secs. 1601-1624)
      The House bill contained a provision (sec. 384) that 
would convert the Civilian Marksmanship Program (CMP) to a 
federally chartered nonprofit corporation.
      The Senate amendment contained a similar provision (sec. 
385) that would convert the CMP to a nonappropriated fund 
instrumentality.
      The Senate recedes with an amendment that would convert 
the CMP to a private, nonprofit corporation. The provision 
would require the Secretary of the Army to provide for the 
transition of the CMP from an appropriated fund activity of the 
Department of Defense to a viable nonprofit corporation.
      The conferees recognize the value of the CMP, and believe 
the program should continue as a non-federal government entity.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

                                overview

      The budget request for fiscal year 1996 included 
$10,697,955,000 for military construction and family housing.
      The House bill would authorize $11,197,995,000 for 
military construction and family housing.
      The Senate amendment would provide $10,902,988,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $11,177,009,000 for military construction and family 
housing, including general reductions and termination of prior 
year projects.
      The conferees are deeply concerned about the current 
quality of facilities at military installations and the 
condition of the housing stock for military families and 
unaccompanied personnel. The conferees are concerned about the 
possible long-term deleterious effects of deteriorating 
military infrastructure and military housing on the readiness 
of the armed forces and the retention of personnel. The 
conferees are especially concerned about the backlog of 
construction, repair, and maintenance required to resolve 
serious problems affecting the quality of life for personnel 
and their families. The increases in funding recommended by the 
conferees is targeted at enhancing quality of life programs, 
particularly housing and needed operational requirements for 
the military services.
      The conferees are pleased with the attention the 
Secretary of Defense has devoted to improving family housing, 
housing for unaccompanied personnel, and other quality of life 
improvements. The conferees note the Secretary's proposal to 
establish new authorities for alternative means to construct or 
improve military housing. The conferees have worked closely 
with the Secretary in the development of the proposal and have 
agreed to include these authorities in this Act.
      The conferees have also included a provision to expand 
the authority previously granted to the Department of the Navy 
to enter into limited partnerships with the private sector to 
acquire family housing. The conferees note the efforts of the 
Navy to utilize existing authority to provide critically needed 
housing in Corpus Christi, Texas and Everett, Washington. The 
conferees understand that agreements to provide housing in 
those two locations may be ready for contract execution in 
fiscal year 1996.
      In addition to these new initiatives, the conferees also 
support a pilot program that provides qualified junior enlisted 
and junior officer personnel with greater access to private 
home ownership opportunities through an interest rate buydown 
program managed by the Department of Veterans' Affairs. The 
conferees encourage the Secretary of Defense to promote this 
program and to continue exploring creative ways to stimulate 
interest in and availability of home ownership among 
servicemembers.
      The conferees recognize that these authorities have the 
long-term potential to produce critically needed housing for 
the armed forces. To rectify immediate problems, the conferees 
recommend $417,169,000 above the Administration's budget 
request for family housing, unaccompanied personnel housing, 
child development centers, health care facilities, and other 
projects to enhance the quality of life for currently serving 
personnel.


                            Title XXI--Army

                            fiscal year 1996

Overview

      The House bill would authorize $2,167,190,000 for Army 
military construction and family housing programs for fiscal 
year 1996.
      The Senate amendment would authorize $2,027,613,000 for 
this purpose.
      The conferees recommend authorization of $2,147,427,000 
for Army military construction and family housing for fiscal 
year 1996.
      The conferees agree to a general reduction of $6,385,000 
in the authorization of appropriations for the Army military 
construction account. The general reduction is to be offset by 
savings from favorable bids, reduction in overhead costs, and 
cancellation of projects due to force structure changes. The 
general reduction shall not cancel any military construction 
authorized by title XXI of this Act.

Planning and design, Army

      The conferees direct that, within authorized amounts for 
planning and design, the Secretary of the Army conduct planning 
and design activities for the following project:
      Pohakuloa Training Site, Hawaii, Road Improvement--
$2,000,000.
      The conferees note that this project is required to 
correct hazardous road conditions which impact readiness. The 
conferees urge the Secretary to make every effort to include 
this project in the fiscal year 1997 budget request.

Aerial Port and Intermediate Staging Base, The National Training 
        Center, Fort Irwin, California

      The budget request included no military construction 
funds to expand the airport at Barstow-Daggett, California, to 
meet the operational and training requirements of the National 
Training Center, Fort Irwin, California.
      The House bill would authorize $10.0 million for phase II 
of the Barstow-Daggett expansion project.
      The Senate amendment included no funding for phase II of 
this project.
      The conferees agree to authorize $10.0 million for phase 
II of the Barstow-Daggett expansion project, contingent upon 
the Secretary of Defense's certification that the project best 
meets the operational and training requirements of the National 
Training Center, Fort Irwin, California.

                         legislative provisions

                     legislative provisions adopted

Improvements to military family housing units (sec. 2103)

      The conferees direct that, within authorized amounts for 
construction improvements of military family housing and 
facilities, the Secretary of the Army execute the following 
projects:
      Fort Wainwright, Alaska, Whole Neighborhood 
Revitalization--$7,300,000.
      Fort Campbell, Kentucky, Whole Neighborhood 
Revitalization--$17,356,000.
      Fort Bragg, North Carolina, Whole Neighborhood 
Revitalization--$10,000,000.

                   legislative provisions not adopted

Reduction in amounts authorized to be appropriated for fiscal year 1992 
        military construction projects

      The Senate amendment contained a provision (sec. 2105) 
that would rescind $6.25 million from the amount authorized for 
the Department of the Army in section 2105 of the National 
Defense Authorization Act for Fiscal Year 1992 (Public Law 102-
190).
      The House bill amendment contained no similar provision.
      The Senate recedes.

                            Title XXII--Navy

                            fiscal year 1996

Overview

      The House bill would authorize $2,164,861,000 for Navy 
military construction and family housing programs for fiscal 
year 1996.
      The Senate amendment would authorize $2,077,459,000 for 
this purpose.
      The conferees recommend authorization of $2,119,317,000 
for Navy military construction and family housing for fiscal 
year 1996.
      The conferees agree to a general reduction of $6,385,000 
in the authorization of appropriations for the Navy military 
construction account. The general reduction is to be offset by 
savings from favorable bids, reduction in overhead costs, and 
cancellation of projects due to force structure changes. The 
general reduction shall not cancel and military construction 
authorized by title XXII of this Act.

Planning and design, Navy

      The conferees direct that, within authorized amounts for 
planning and design, the Secretary of the Navy conduct planning 
and design activities for the following projects:
      Naval Station, Mayport, Florida, Wharf Improvements--
$2,340,000.
      Naval Air Station, Fallon, Nevada, Galley--$50,000.
      Naval Air Station, Fallon, Nevada, Child Development 
Center--$150,000.
      The conferees note that the projects at Naval Air 
Station, Fallon, Nevada, are necessary to correct facility 
deficiencies which impact readiness, quality of life, and 
productivity. The conferees urge the Secretary to make every 
effort to include these projects in the fiscal year 1997 budget 
request.

Improvements to military family housing units (sec. 2203)

      The conferees direct that, within authorized amounts for 
construction improvements of military family housing and 
facilities, the Secretary of the Navy execute the following 
projects:
      Naval Station, Mayport, Florida, Whole House 
Revitalization--$7,300,000.
      Public Works Center, Great Lakes, Illinois, Whole House 
Revitalization--$15,300,000.
      Naval Education Training Command, Newport, Rhode Island, 
Whole House Improvements--$8,795,000.
      Marine Corps Air Station, Beaufort, South Carolina, Whole 
House Rehabilitation--$6,784,000.
      Naval Submarine Base, Bangor, Washington, Construction 
Improvements--$4,890,000.

                         legislative provisions

                     legislative provisions adopted

Revision of fiscal year 1995 authorization of appropriations to clarify 
        availability of funds for large anechoic chamber, Patuxent 
        River Naval Warfare Center, Maryland (sec. 2205)

      The Senate amendment contained a provision (sec. 2205) 
that would amend section 2204 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-307) to 
authorize the $10.0 million appropriated for the Large Anechoic 
Chamber Facility at the Naval Air Warfare Center, Patuxent 
River, Maryland in the Military Construction Appropriations Act 
for Fiscal Year 1995 (Public Law 103-307).
      The Senate provision would permit the Navy to proceed 
with the award of a contract in the amount of $30.0 million for 
the first phase of the $61.0 million project.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Authority to carry out land acquisition project, Hampton Roads, 
        Virginia (sec. 2206)

      The Senate amendment contained a provision (sec. 2206) 
that would amend section 2201(a) of the National Defense 
Authorization Act for Fiscal Year 1993 to authorize the 
Secretary of the Navy to acquire 191 acres of land in Hampton 
Roads, Virginia. This acquisition is in addition to the land 
acquisition at Dam Neck, Virginia, authorized in the National 
Defense Authorization Act for Fiscal Year 1993.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees direct the Secretary of Navy to make every 
possible attempt to acquire both parcels of land using the $4.5 
million previously authorized. If additional funds are 
required, the conferees expect the Secretary to utilize cost 
variation and reprogramming procedures.

Acquisition of land, Henderson Hall, Arlington, Virginia (sec. 2207)

      The Senate amendment contained a provision (sec. 2207) 
that would authorize the Secretary of the Navy to acquire a 
0.75 acre parcel of land located at Henderson Hall, Arlington, 
Virginia. The parcel, which is currently occupied by an 
abandoned and vandalized mausoleum, is required to construct a 
public works complex to support the Headquarters Battalion, 
United States Marine Corps. The provision would authorize the 
demolition of the mausoleum and the use of appropriated funds 
to remove and provide appropriate disposal of the remains 
abandoned in the mausoleum.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Acquisition or construction of military family housing in the vicinity 
        of San Diego, California (sec. 2208)

      The conferees include a new section that would direct the 
Secretary of the Treasury to make available, upon request from 
the Secretary of the Navy, funds paid to the United States upon 
final settlement in the case of Rossmoor Liquidating Trust, 
initiated against the United States, in the United States 
District Court for the Central District of California. From 
those funds, the Secretary of the Navy would be authorized to 
acquire or construct no more than 150 military family housing 
units in the San Diego, California region for the Department of 
the Navy. The authority would be subject to the expiration of a 
21-day period, beginning on the day on which the Secretary 
transmits to the congressional defense committees a report 
containing the details of the contract to acquire or construct 
the units authorized by this section.

                         Title XXIII--Air Force

                            fiscal year 1996

Overview

      The House bill would authorize $1,727,557,000 for Air 
Force military construction and family housing programs for 
fiscal year 1996.
      The Senate amendment would authorize $1,724,699,000 for 
this purpose.
      The conferees recommend authorization of $1,735,086,000 
for Air Force military construction and family housing for 
fiscal year 1996.
      The conferees agree to a general reduction of $6,385,000 
in the authorization of appropriations for the Air Force 
military construction account. The general reduction is to be 
offset by savings from favorable bids, reduction in overhead 
costs, and cancellation of projects due to force structure 
changes. The general reduction shall not cancel any military 
construction authorized by title XXIII of this Act.
Improvements to military family housing units (sec. 2303)
      The conferees direct that, within authorized amounts for 
construction improvements of military family housing and 
facilities, the Secretary of the Air Force execute the 
following project:

  Wright-Patterson Air Force Base, Ohio, Family Housing 
    Improvements
                                                              $5,900,000

                       items of special interest

Bonaire housing complex, Presque Isle, Maine
      The conferees are aware of the economic impact and the 
difficult redevelopment effort facing Limestone, Maine, as a 
result of the closure of Loring Air Force Base. To ensure that 
the community has maximum flexibility in its redevelopment 
effort, the conferees direct the Secretary of the Air Force to 
obtain written concurrence of the designated local reuse 
authority, or its designee, before any land, tangible property 
or interest in the Air Force property known as the Bonaire 
housing complex in Presque Isle, Maine, is transferred to the 
Department of the Interior, or to any other entity. The 
conferees believe that a cooperative effort should be 
maintained by all parties seeking property and that the 
designated local redevelopment authority is the most 
appropriate entity to coordinate reuse efforts.

                         legislative provisions

                     legislative provisions adopted

Retention of accrued interest on funds deposited for construction of 
        family housing, Scott Air Force Base, Illinois (sec. 2305)
      The House bill contained a provision (sec. 2305) that 
would amend section 2310 of the Military Construction 
Authorization Act for Fiscal Year 1994 (Division B of Public 
Law 103-160) to permit the retention of accrued interest on 
funds previously transferred to the County of St. Clair, 
Illinois, for the purpose of constructing military family 
housing at Scott Air Force Base. Upon completion of 
construction all funds remaining, and any interest accrued 
thereon, shall be deposited in the general fund of the United 
States Treasury.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of the Air Force to submit to congressional 
defense committees an annual report describing the amount of 
interest accrued and retained by the County for the housing 
project. The Secretary would be required to submit the report 
by March 1 of each year, until the construction project is 
completed.

                   legislative provisions not adopted

Reduction in amounts authorized to be appropriated for fiscal year 1992 
        military construction projects
      The Senate amendment contained a provision (sec. 2305) 
that would rescind $16.0 million from the amount authorized for 
the Department of the Air Force in section 2305 of the National 
Defense Authorization Act for Fiscal Year 1992 (Public Law 102-
190).
      The House bill contained no similar provision.
      The Senate recedes.

                      Title XXIV--Defense Agencies

                            fiscal year 1996

Overview
      The House bill would authorize $4,692,463,000 for Defense 
Agencies military construction and family housing programs for 
fiscal year 1996.
      The Senate amendment would authorize $4,456,883,000 for 
this purpose.
      The conferees recommend authorization of $4,629,491,000 
for Air Force military construction and family housing for 
fiscal year 1996.

                         legislative provisions

                     legislative provisions adopted

Military family housing private investment (sec. 2402)

      The House bill contained a provision (sec. 2402) that 
would authorize the Secretary of Defense to enter into 
agreements to construct, acquire, and improve family housing, 
for the purpose of encouraging private investment, in the 
amount of $22,000,000.
      The Senate amendment contained a similar provision.
      The House recedes.

Energy conservation projects (sec. 2404)

      The House bill contained a provision (sec. 2404) that 
would authorize the Secretary of Defense to carry out energy 
conservation projects using funds authorized pursuant to the 
authorization of appropriations in section 2405.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Limitations on use of Department of Defense Base Closure Account 1990 
        (sec. 2406)

      The conferees include a new section that would prohibit 
the obligation of funds authorized for appropriation in section 
2405 (a)(10) of this Act, to carry out a construction project 
with respect to military installations approved for closure or 
realignment in 1995, until after the date the Secretary of 
Defense submits to Congress a five-year program for executing 
the 1995 base realignment and closure plan. The limitation 
would not preclude any activities associated with environmental 
cleanup activities or planning and design for such construction 
projects.
Modification of authority to carry out fiscal year 1995 projects (sec. 
        2407)
      The House bill contained a provision (sec. 2406) that 
would amend the table in section 2401 of the Military 
Construction Authorization Act for Fiscal Year 1995 (Division B 
of Public Law 103-337) to provide for full authorization of 
projects to support chemical weapons and munitions destruction 
at Pine Bluff Arsenal, Arkansas and Umatilla Army Depot, 
Oregon.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Reduction in amounts authorized to be appropriated for fiscal year 1994 
        contingency construction projects (sec. 2408)
      The Senate amendment contained a provision (sec. 2407) 
that would terminate authorization of appropriations for prior 
year projects including:
      (1) $3.2 million from the amount authorized for the 
Department of Defense in section 2405(a) of the Military 
Construction Authorization Act for Fiscal Year 1991 (Division B 
of Public Law 101-510);
      (2) $6.8 million from the amount authorized for the 
Department of Defense in section 2404(a) of the Military 
Construction Authorization Act for Fiscal Year 1992 (Division B 
of Public Law 102-190); and
      (3) $8.6 million from the amount authorized for the 
Department of Defense in section 2403(a) of the Military 
Construction Authorization Act for Fiscal Year 1993 (Division B 
of Public Law 102-484).
      The House bill contained no similar provision.
      The House recedes with an amendment that would reduce 
$8.1 million from the amount authorized to be appropriated for 
the Department of Defense in section 2403(a) of the Military 
Construction Authorization Act for Fiscal Year 1994 (Division B 
of Public Law 103-160).

                   LEGISLATIVE PROVISIONS NOT ADOPTED

Limitation of expenditures for a construction project at Umatilla Army 
        Depot, Oregon
      The House bill contained a provision (sec. 2407) that 
would prohibit the expenditure of funds prior to March 1, 1996, 
for the construction of a chemical weapons and munitions 
incinerator facility at Umatilla Army Depot, Oregon.
      The Senate amendment contained no similar provision.
      The House recedes.

     Title XXV--North Atlantic Treaty Organizations Infrastructure

                            fiscal year 1996

Overview
      The House bill would authorize $161,000,000 for the U.S. 
contribution to the NATO Infrastructure program for fiscal year 
1996.
      The Senate amendment would authorize $179,000,000 for 
this purpose.
      The conferees authorize $161,000,000 for the U.S. 
contribution to the NATO Infrastructure program.

                         legislative provisions

                     legislative provisions adopted

Authorization of appropriations, NATO (sec. 2502)
      The House bill contained a provision (sec. 2502) that 
would authorize funding for the North Atlantic Treaty 
Organization Infrastructure program in the amount of $161.0 
million.
      The Senate amendment contained a provision (sec. 2502) 
that would authorize funding for the North Atlantic Treaty 
Organization Infrastructure program in the amount of $179.0 
million.
      The Senate recedes.

            Title XXVI--Guard and Reserve Forces Facilities

                            fiscal year 1996

Overview

      The House bill would authorize $284,924,000 for military 
construction and land acquisition for fiscal year 1996 for the 
National Guard and reserve components.
      The Senate amendment would authorize $432,339,000 for 
this purpose.
      The conferees recommend authorization of $436,522,000 for 
military construction and land acquisition for fiscal year 
1996. This authorization would be distributed as follows:

    Army National Guard.................................    $134,802,000
    Army Reserve........................................      73,516,000
    Naval/Marine Corps Reserve..........................      19,055,000
    Air National Guard..................................     170,917,000
    Air Force Reserve...................................      36,232,000

Planning and design, Guard and Reserve Forces
      The conferees direct that, within authorized amounts for 
planning and design, the Guard and Reserve Forces conduct 
planning and design activities for the following projects:

Army Reserve:
    Fort Dix, New Jersey, Intelligence Training Center..        $788,000
Army National Guard:
    Lincoln, Nebraska, Medical Training Facility........        $200,000
    Fort Dix, New Jersey, Technical Training Facility...        $750,000
    Billings, Montana, Armed Forces Reserve Center......      $1,200,000
Air National Guard:
    Robins Air Force Base, Georgia, B-1 Site and Utility 
      Upgrades..........................................        $270,000
    Hickam Air Force Base, Hawaii, Squadron Operations 
      Facility..........................................        $790,000

      The conferees note that these projects are required to 
accommodate new missions and to correct facility deficiencies 
that impact readiness, quality of life, and productivity. The 
conferees urge the service secretaries to make every effort to 
include these projects in the fiscal year 1997 budget request.

                         legislative provisions

                     legislative provisions adopted

Reduction in amount authorized to be appropriated for fiscal year 1994 
        Air National Guard Projects (sec. 2602)
      The Senate amendment contained a provision (sec. 2602) 
that would rescind funds authorized for appropriation by the 
National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103-160) for land acquisition for the Idaho Training Range.
      The House bill contained no similar provision.
      The House recedes.
Correction in authorized uses of funds for Army National Guard projects 
        in Mississippi (sec. 2603)
      The House bill contained a provision (sec. 2602) that 
would clarify amounts authorized to be appropriated in section 
2601(1)(A) of the Military Construction Authorization Act for 
Fiscal Year 1994 (Division B of Public Law 103-360) for the 
addition or alteration of Army National Guard Armories at 
various locations in the State of Mississippi. The House 
provision would direct the use of authorized funds for the 
addition, alteration, or new construction of armory facilities 
and an operations and maintenance shop, including the 
acquisition of land for such facilities at such locations.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would direct 
the Secretary of the Army to submit a report to congressional 
defense committees that would describe the intended use of 
funds and to wait 21 days before any of the funds could be 
obligated.

                    Title XXVIII--General Provisions

                       ITEMS OF SPECIAL INTEREST

Damage to facilities from Hurricane Opal
      The conferees note that, on October 5, 1995, military 
facilities in the Southeastern United States sustained damage 
as a direct result of Hurricane Opal. The conferees direct the 
Secretary of Defense to conduct a comprehensive assessment of 
infrastructure and facilities at installations affected by 
Hurricane Opal, to include: Fort Benning and Fort McPherson in 
Georgia; Fort Rucker, Fort McClellan, and Anniston Army Depot 
in Alabama; Tyndall Air Force Base, Eglin Air Force Base, and 
Hulbert Field and facilities in and around Naval Air Station, 
Pensacola, Florida. The Secretary shall submit a report on the 
Department's findings to the congressional defense committees, 
no later than February 15, 1996.
      The assessment should include:
            (1) a report on all property damage;
            (2) the estimated cost to repair or replace damaged 
        or destroyed facilities;
            (3) the impact on operations and readiness caused 
        by any loss of facilities;
            (4) any actions taken to repair or replace damaged 
        or destroyed facilities; and
            (5) recommendations for funding the required 
        facility repairs or replacements.

                         LEGISLATIVE PROVISIONS

                     LEGISLATIVE PROVISIONS ADOPTED

         Subtitle A--Military Housing Privatization Initiative

Alternative authority for construction and improvement of military 
        housing (sec. 2801)
      The House bill contained a provision (sec. 2801) that 
would authorize a series of authorities, as alternative methods 
of acquiring and improving family housing and support 
facilities for the armed forces. Such authorities would include 
the ability to contract and lease family housing. Use of the 
authorities would be targeted at installations where there is a 
shortage of suitable family housing. For housing acquired under 
the authorities provided in this section, the unit size and 
type limitations in current law would be waived to encourage 
private sector development of military family housing. The 
Department of Defense (DOD) would be authorized to contribute 
up to 35 percent of the investment cost in any project. Such 
investment could take a number of forms, including cash, 
existing housing, and/or real property. The provision would 
also establish the Defense Family Housing Improvement Fund as 
the sole source of funding for projects constructed or 
renovated under the authorities of this provision. The 
provision would require DOD to submit a 21-day notice-and-wait 
announcement to Congress before entering into contract 
agreements associated with these new authorities and would 
require DOD to submit a 30-day notice-and-wait announcement 
before transferring funds from the family housing construction 
accounts to the Fund. Each of the authorities contained in this 
provision would expire on September 30, 2000.
      The Senate amendment contained a similar provision (sec. 
2811) that would expand the authorities to include acquisition 
or renovation of unaccompanied housing on or near military 
installations. The provision would also establish a Department 
of Defense Housing Improvement Fund, for use as the sole source 
to finance costs associated with the acquisition of housing and 
support facilities.
      The House recedes with an amendment that would establish 
the Department of Defense Family Housing Improvement Fund and 
the Department of Defense Military Unaccompanied Housing 
Improvement Fund as the sources to finance costs associated 
with the acquisition of housing and supporting facilities, 
including costs defined in section 502(5) of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a(5)). The provision would also 
establish certain reporting requirements for the DOD and would 
limit the transfer of funds previously authorized and 
appropriated to funds associated with the construction of 
family housing or unaccompanied housing. The provision would 
also limit the obligation of funds by DOD to $850.0 million for 
family housing and $150.0 million for unaccompanied housing.
Expansion of authority for limited partnerships for development of 
        military family housing (sec. 2802)
      The Senate amendment contained a provision (sec. 2807) 
that would provide each of the military services with the 
limited partnership authority provided to the Department of the 
Navy by section 2803 of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337). The provision would 
also extend the expiration of the authority to September 30, 
2000.
      The House bill contained a similar provision.
      The House recedes with a technical amendment.

  Subtitle B--Other Military Construction Program and Military Family 
                            Housing Changes

Special threshold for unspecified minor construction projects to 
        correct life, health, or safety deficiencies (sec. 2811)
      The Senate amendment contained a provision (sec. 2801) 
that would amend 2805 of title 10, United States Code, to 
include as a minor military construction project any military 
construction project intended solely to correct a life, health, 
or safety deficiency, if the approved cost is equal to or less 
than $3.0 million. The provision would authorize the 
expenditure of operation and maintenance funds to carry out 
projects to correct a life, health, or safety deficiency 
costing no more than $1.0 million.
      The House bill contained a similar provision.
      The House recedes.
Clarification of scope of unspecified minor construction authority 
        (sec. 2812)
      The Senate amendment contained a provision (sec. 2802) 
that would amend section 2805(a)(1) of title 10, United States 
Code, to clarify the definition of minor military construction.
      The House bill contained a similar provision.
      The House recedes.
Temporary authority to waive net floor area limitation for family 
        housing acquired in lieu of construction (sec. 2813)
      The Senate amendment contained a provision (sec. 2803) 
that would waive, for a five year period, beginning in fiscal 
year 1996, the net floor area limitation established in section 
2826 of title 10, United States Code, if existing family 
housing is acquired in lieu of construction.
      The House bill contained no similar provision.
      The House recedes with an amendment that would give the 
service secretary discretionary authority to waive the floor 
limitation.
Reestablishment of authority to waive net floor area limitation on 
        acquisition by purchase of certain military family housing 
        (sec. 2814)
      The Senate amendment contained a provision (sec. 2804) 
that would make permanent section 2826(e) of title 10, United 
States Code, that allows a waiver for a 20 percent increase in 
the square footage limitation when acquiring, through purchase, 
military family housing units for members of the Armed Forces 
in pay grades below O-6.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Temporary authority to waive limitations on space by pay grade for 
        military family housing units (sec. 2815)
      The Senate amendment contained a provision (sec. 2805) 
that would waive section 2826 of title 10, United States Code, 
for housing authorized for construction for five years, 
beginning in fiscal year 1996. The waiver would permit the 
construction of family housing units without regard to space 
limitations, as long as the total number of housing units is 
the same as authorized by law.
      The House bill contained no similar provision.
      The House recedes with an amendment that would give the 
service secretary discretion to waive the authority for five 
years beginning in fiscal year 1996.

Rental of family housing in foreign countries (sec. 2816)

      The House bill contained a provision (sec. 2805) that 
would authorize an increase in the number of high-cost family 
housing units that may be leased in foreign countries.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Clarification of scope of report requirement on cost increases under 
        contracts for military family housing construction (sec. 2817)

      The Senate amendment contained a provision (sec. 2808) 
that would amend section 2853 to title 10, United States Code, 
by eliminating the requirement for congressional notification 
on cost increases that exceed established limitations when the 
increase is related to settlement of a court ordered contract 
claim.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Authority to convey damaged or deteriorated military family housing 
        (sec. 2818)

      The Senate amendment contained a provision (sec. 2809) 
that would authorize the secretaries of the military 
departments to sell, at fair market value, family housing 
facilities at non-base closure installations that have 
deteriorated beyond economical repair, or are no longer 
required. The sale may include the parcel of land on which the 
family housing facilities are located.
      The provision directs that the proceeds from the sale of 
the property be used to replace or revitalize housing at the 
existing installation, or at another installation. The 
provision also requires the secretary concerned to notify 
Congress before proceeding with conveyance of family housing 
facilities under this authority.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Energy and water conservation savings for the Department of Defense 
        (sec. 2819)

      The Senate amendment contained a provision (sec. 2810) 
that would amend section 2865 of title 10, United States Code, 
to include water conservation in the Department of Defense's 
comprehensive energy conservation plan.
      The House bill contained no similar provision.
      The House recedes.

Extension of authority to enter into leases of land for special 
        operations activities (sec. 2820)

      The Senate amendment contained a provision (sec. 2812) 
that would make permanent the authority provided in section 
2680 of title 10, United States Code, which grants the 
Secretary of Defense the authority to lease property required 
for special operations activities conducted by the Special 
Operations Command.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend the 
authority to lease property required for special operations 
until September 30, 2000.
Disposition of amounts recovered as a result of damage to real property 
        (sec. 2821)
      The House bill contained a provision (sec. 2804) that 
would authorize the military departments to retain the proceeds 
recovered as a result of damages to real property instead of 
depositing those proceeds into the miscellaneous receipts 
account in the United States Treasury. Such proceeds would be 
made available for repair or replacement of damages to real 
property.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Pilot program to provide interest rate buy down authority on loans for 
        housing within housing shortage areas at military installations 
        (sec. 2822)
      The House bill contained a provision (sec. 2806) that 
would authorize a three-year pilot program to provide 
additional housing assistance to military personnel. Under the 
program, as administered by the Secretary of Veterans Affairs 
(VA), the VA would buy down the interest rate on VA home loans 
for qualified applicants. The Secretary of Defense would 
reimburse the VA for the costs of the interest rate buy down. 
Authorization of the program would be limited to $10.0 million 
and could only be utilized at military installations which the 
Secretary of Defense considers to have a military family 
housing deficit.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
scope of the program to active duty enlisted members, warrant 
officers, and officers at a pay grade of O-3 and below.

            Subtitle C--Defense Base Closure and Realignment

Deposit of proceeds from leases of property located at installations 
        being closed or realigned (sec. 2831)
      The House bill contained a provision (sec. 2812) that 
would authorize the Secretary of Defense to deposit proceeds 
from leases of property located at installations being closed 
or realigned into the relevant account established in the 
Defense Authorization Amendments and Base Closure and 
Realignment Act (Public Law 100-526) or the Defense Base 
Closure and Realignment Act of 1990 (Public Law 101-510).
      The Senate amendment contained a similar provision.
      The Senate recedes.
In-kind consideration for leases at installations to be closed or 
        realigned (sec. 2832)
      The Senate amendment contained a provision (sec. 2821) 
that would permit the service secretaries to accept in-kind 
services (improvements, maintenance, protection, repair, or 
restoration services performed on any portion of the 
installation) from a lessee in lieu of cash rental payments for 
leases of property that will be disposed of as a result of a 
base closure or realignment.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Interim leases of property approved for closure or realignment (sec. 
        2833)

      The Senate amendment contained a provision (sec. 2830B) 
that would facilitate the use of limited term leases (one to 
five years) by the Department of Defense in connection with 
reuse of military installations selected for closure. The 
provision would make it clear that any environmental impact 
analysis prepared in connection with an interim lease of 
Department of Defense property approved for closure or 
realignment shall be limited to the scope of environmental 
consequences related to the lease activities.
      The House bill contained no similar provision.
      The House recedes.
      The conferees agree that under current law the Department 
of Defense has been reluctant to enter into limited term leases 
before an environmental review has been completed, pursuant to 
the National Environmental Policy Act (42 U.S.C. 4321, et. 
seq.), that would address the disposal of the entire 
installation. Such concerns have impeded private sector use of 
base closure property for short term capital investments.

Authority to lease property requiring environmental remediation at 
        installations approved for closure or realignment (sec. 2834)

      The Senate amendment contained a provision (sec. 2824) 
that would allow the Department of Defense to enter into long-
term lease agreements at military installations selected for 
closure, while environmental restoration is ongoing. 
Specifically, the section would provide that section 
120(h)(3)(B) of the Comprehensive Environmental Response 
Compensation and Liability Act of 1980 (CERCLA) (42 U.S.C. 
9620(h)(3)(B)) does not apply to leases at Department of 
Defense installations. The provision would also provide for 
Environmental Protection Agency consultation on the 
determination that property is suitable for lease in those 
instances involving long term leases at installations approved 
for closure under a base closure law.
      The House bill contained no similar provision.
      The House recedes.
      The conferees agree that the provision is necessary to 
ensure that the Department may enter into long-term leases 
while cleanup is ongoing. The provision addresses a recent 
federal district court decision that could undermine reuse 
plans at military installations selected for closure with 
similar reuse plans. The provision serves to clarify the 
legislative intent on this issue.
Final funding for Defense Base Closure and Realignment Commission (sec. 
        2835)
      The Senate amendment contained a provision (sec. 2825) 
that would amend section 2902(k) of the Defense Base Closure 
and Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510, 10 U.S.C. 2657) to authorize the Secretary of Defense 
to transfer unobligated funds from the Department of Defense 
Base Closure Account to fund the operations of the Defense Base 
Closure and Realignment Commission until December 31, 1995.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
transfer authority to $300,000.
Exercise of authority delegated by the Administrator of General 
        Services (sec. 2836)
      The Senate amendment contained a provision (sec. 2827) 
that would amend the Defense Base Closure and Realignment Act 
of 1990 (Public Law 101-510) to expand the authority of the 
Secretary of Defense, with the concurrence of the Administrator 
of the General Services Administration, to prescribe general 
policies and issue regulations for utilizing excess property 
and disposing of surplus property. The provision would also 
make certain technical changes.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Lease back of property disposed from installations approved for closure 
        or realignment (sec. 2837)
      The Senate amendment contained a provision (sec. 2828) 
that would amend the Defense Base Closure and Realignment Act 
of 1990 (Public Law 101-510) to allow base closure property 
that is still needed by the Department of Defense or another 
federal agency to be transferred to the local redevelopment 
authority, providing that the redevelopment authority leases 
back the property to the Department of Defense or federal 
agency. Such a lease should not exceed 50 years and could not 
require rental payments by the United States.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Improvement of base closure and realignment process regarding disposal 
        of property (sec. 2838)
      The House bill contained a provision (sec. 2814) that 
would amend the Defense Authorization Amendments and Base 
Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 
note) and the Defense Base Closure and Realignment Act of 1990 
(Part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687). 
The provision would preclude consideration of Section 501 of 
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11411) in the transfer or disposal of real property located at 
military installations closed or realigned under the base 
closure law.
      The Senate amendment contained a provision (sec. 2826) 
that would amend the Defense Base Closure and Realignment Act 
of 1990 (Part A of title XXIX of Public Law 101-510; 10 U.S.C. 
2687) to authorize the Secretary of Defense to approve local 
redevelopment authorities' base reuse plans. Before making any 
property disposal decisions, the Secretary of Defense would be 
required to consult with the Secretary of Housing and Urban 
Development to determine if the needs of the homeless were 
appropriately considered. In reviewing disposal plans, the 
Secretary of Defense could give deference to local communities' 
plans in making the final property disposal decisions.
      The House recedes with a technical amendment that would 
recognize the preeminence of local redevelopment authorities' 
plans for reuse of properties and facilities on installations 
closed or realigned under the base closure procedures. The 
amendment would further enhance the ability of the Secretary of 
Defense to give final approval of local communities' base reuse 
plans.
Agreements for certain services at installations being closed (sec. 
        2839)
      The House bill contained a provision (sec. 2813) that 
would clarify current law that authorizes the Secretary of 
Defense to enter into agreements with local governments for the 
provision of police, security, fire protection, air field 
operations, or other community services provided by such 
governments at military installations scheduled to be closed.
      The Senate amendment contained a similar provision.
      The Senate recedes with a technical amendment.
Authority to transfer property at military installations to be closed 
        to persons who construct or provide military family housing 
        (sec. 2840)
      The House bill contained a provision (sec. 2811) that 
would authorize the Secretary of Defense to enter into an 
agreement to transfer property or facilities at a closed 
installation, or an installation designated to be closed, under 
current law, to a person who agrees to provide, in exchange for 
the property or facilities, housing units located at another 
military installation where there is a shortage of suitable 
housing. Under the provision, the Secretary would not be 
permitted to select property or facilities for transfer that 
have been identified in the redevelopment plan for the 
installation as essential for base reuse and development.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Use of single base closure authorities for disposal of property and 
        facilities at Fort Holabird, Maryland (sec. 2841)
      The Senate amendment contained a provision (sec. 2830) 
that would consolidate disposal of all property affected by the 
1988 and 1995 base closure actions at Fort Holabird, Maryland 
under the provisions of the Base Closure Community 
Redevelopment and Homeless Assistance Act of 1994 (Public Law 
103-421).
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                 Subtitle D--Land Conveyances Generally

                        part I--army conveyances

Transfer of jurisdiction, Fort Sam Houston, Texas (sec. 2851)
      The House bill contained a provision (sec. 2821) that 
would authorize the Secretary of the Army to transfer, without 
reimbursement, approximately 53 acres, with improvements, to 
the Secretary of Veterans Affairs. The property would be 
conveyed for use as a national cemetery.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment deleting the 
reversionary interest of the Secretary of the Army in the 
property.

Transfer of jurisdiction, Fort Bliss, Texas (sec. 2852)

      The House bill contained a provision (sec. 2838) that 
would authorize the Secretary of the Army to transfer to the 
Secretary of Veteran Affairs jurisdiction of approximately 22 
acres, comprising a portion of Fort Bliss, Texas. The property 
transferred would be used as an addition to the Fort Bliss 
National Cemetery.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delete 
the Secretary of the Army's reversionary interest in the 
property.

Tranfer of jurisdiction and land conveyance, Fort Devens Military 
        Reservation, Massachusetts (sec. 2853)

      The House bill contained a provision (sec. 2831) that 
would require the Secretary of the Army to convey to the 
Secretary of the Interior, without reimbursement, a portion of 
the Fort Devens Military Reservation, Massachusetts, at any 
time after the date on which the property is determined to be 
excess to the needs of the Department of Defense. The property 
is to be conveyed for inclusion in the Oxbow National Wildlife 
Refuge. The cost of any surveys necessary for the conveyance 
shall be borne by the Secretary of the Interior.
      This section would also require the Secretary of the Army 
to convey to the Town of Lancaster, Massachusetts, without 
reimbursement, a parcel of real property consisting of 
approximately 100 acres of the parcel available for transfer to 
the Secretary of the Interior. The cost of any surveys 
necessary for the conveyance would be borne by the town.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

Modification of land conveyance, Fort Belvoir, Virginia (sec. 2854)

      The Senate amendment contained a provision (sec. 2863) 
that would require the Secretary of the Army to submit a report 
to the Senate Armed Services Committee and the House National 
Security Committee on the status of the negotiations related to 
the land conveyance at the Engineer Proving Grounds, Fort 
Belvoir, Virginia authorized by subsection (a) of section 2821 
of the Military Construction Authorization Act for Fiscal Years 
1990 and 1991 (Public Law 101-189).
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete the 
reporting requirement and would amend section 2821 of the 
Military Construction Authorization Act for Fiscal Years 1990 
and 1991 to authorize the Secretary of the Army to convey to 
the County of Fairfax, Virginia, all right, title and interest 
of the United States in and to all or a portion of the parcel 
of real property, including improvements thereon, at Fort 
Belvoir, Virginia, consisting of approximately 820 acres and 
known as the Engineer Proving Ground. In consideration, the 
County shall construct facilities for the Department of the 
Army; grant title, free of liens and other encumbrances, to the 
facilities and, if not already owned by the Department, to the 
underlying land; and make infrastructure improvements for the 
Department of the Army, as may be specified by the Secretary of 
the Army. The value of the consideration provided by the County 
shall not be less than the fair market value of the property 
conveyed to the County, as determined by the Secretary. The 
amendment would prohibit the Secretary from entering into any 
agreement under this provision until the expiration of 60 days 
following the date on which the Secretary transmits to the 
congressional defense committees a report containing details of 
the agreement between the Army and the County.

Land exchange, Fort Lewis, Washington (sec. 2855)

      The House bill contained a provision (sec. 2836) that 
would authorize the Secretary of the Army to convey to 
Weyerhaeuser Real Estate Company, Tacoma, Washington two 
parcels of real property at Fort Lewis, Washington totaling 
1.26 acres. As consideration the Weyerhaeuser Real Estate 
Company would convey 0.39 acres located within the boundaries 
of Fort Lewis together with other considerations acceptable to 
the Secretary. The total consideration conveyed to the United 
States would be no less than the fair market value of the 
property conveyed by the Army.
      The Senate amendment contained a similar provision.
      The Senate recedes with a technical amendment.

Land exchange, Army Reserve Center, Gainsville, Georgia (sec. 2856)

      The Senate amendment contained a provision (sec. 2846) 
that would authorize the Secretary of the Army to convey to the 
City of Gainesville, Georgia, a 4.2 acre parcel of real 
property, including a reserve center, located on Shallowford 
Road in Gainsville, Georgia. As consideration, the City of 
Gainesville would convey to the Secretary approximately 8 acres 
of real property located in the Atlas Industrial Park in 
Gainesville. The City would construct replacement facilities in 
accordance with the requirements of the Secretary of the Army 
for training activities of the Army Reserve, and fund the costs 
of relocating the Reserve units to the new location. The City's 
contribution of land and facilities would be no less than the 
fair market value of the property conveyed by the Secretary.
      The House amendment contained no similar provision.
      The House recedes with a technical amendment.

Land conveyance, Holston Army Ammunition Plant, Mount Carmel, Tennessee 
        (sec. 2857)

      The House bill contained a provision (sec. 2829) that 
would authorize the Secretary of the Army to convey to the City 
of Mount Carmel, Tennessee, without reimbursement, a parcel of 
real property consisting of approximately 6.5 acres. The 
property would be conveyed for expansion of the existing Mount 
Carmel Cemetery.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Land conveyance, Indiana Army Ammunition Plant, Charlestown, Indiana 
        (sec. 2858)

      The House bill contained a provision (sec. 2825) that 
would authorize the Secretary of the Army to convey to the 
State of Indiana, without consideration, a parcel of real 
property, with improvements, consisting of approximately 1,125 
acres. The property to be conveyed would be used for 
recreational purposes.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Land conveyance, Fort Ord, California (sec. 2859)

      The House bill contained a provision (sec. 2824) that 
would authorize the Secretary of the Army to convey to the City 
of Seaside, California, at fair market value, all right, title, 
and interest in approximately 477 acres of real property 
(comprising the Black House and Bayonet gold courses and a 
portion of the Hayes Housing Facilities) comprising a portion 
of the former Fort Ord Military Complex. From the amount paid 
by the City in consideration for the conveyance, the Secretary 
would deposit in the Morale, Welfare, and Recreation Fund (MWR) 
account of the Department of the Army an amount equal to the 
fair market value of the golf courses conveyed under this 
section. The balance of the amount paid by the City would be 
deposited in the Department of Defense Base Closure Account 
1990.
      The Senate amendment contained a provision (sec. 2841) 
that would require the Secretary of Defense, within 60 days 
after the date of enactment of the National Defense 
Authorization Act for Fiscal Year 1996, to provide to Congress 
a report that would describe the disposal plans for the 477 
acres of property at the former Fort Ord Military Complex.
      The Senate recedes to Senate amendment, section 2841. The 
Senate recedes with an amendment to House bill section 2824. 
The amendment to section 2824 would direct the Secretary to 
deposit into the MWR account only those proceeds from the sale 
of golf courses that are required to support MWR activities in 
the vicinity of Fort Ord for the next five years. The amount 
deposited into the MWR account would not exceed the fair market 
value of golf courses conveyed to the City. The amendment would 
also require the Secretary to certify his findings on the 
disposition of the proceeds in a report to Congress 90 days 
after the date of the conveyance.

Land conveyance, Parks Reserve Forces Training Area, Dublin, California 
        (sec. 2860)

      The House bill contained a provision (sec. 2828) that 
would authorize the Secretary of the Army to convey to the 
County of Alameda, California, approximately 42 acres, with 
improvements, located at the Parks Reserve Forces Training 
Area, Dublin, California. The conveyance shall not include any 
oil, gas, or mineral interests of the United States, and shall 
be subject to the condition that the County would pay for road 
improvements, utility upgrades, and construction improvements 
at the portion of the Army Training Area retained by the Army.
      The Senate bill contained no similar provision.
      The Senate recedes with a technical amendment.

Land conveyance, Army Reserve Center, Youngstown, Ohio (sec. 2861)

      The House bill contained a provision (sec. 2834) that 
would authorize the Secretary of the Army to convey to the City 
of Youngstown, Ohio, without consideration, a parcel of real 
property. The property is located at 399 Miller Street in 
Youngstown, Ohio, and comprises the vacant Kefurt Army Reserve 
Center.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Land conveyance, Army Reserve property, Fort Sheridan, Illinois (sec. 
        2862)

      The Senate amendment contained a provision (sec. 2843) 
that would authorize the Secretary of the Army to convey to a 
transferee, selected through a competitive process, all right, 
title, and interest of the United States in a parcel of real 
property, and improvements thereon, at Fort Sheridan, Illinois, 
consisting of approximately 114 acres and comprising two Army 
Reserve areas. As consideration, the transferee would convey to 
the United States a parcel of land, acceptable to the 
Secretary, located not more than 25 miles from Fort Sheridan 
and in an area having similar social and economic conditions as 
the area in which Fort Sheridan is located. The transferee 
would also be required to construct replacement facilities and 
infrastructure, and pay the cost of relocating the Army 
personnel. The Secretary of the Army would be required to 
ensure that the fair market value of the consideration provided 
by the transferee is not less than the fair market value of the 
real property conveyed by the Secretary.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Land conveyance, property underlying Cummins Apartment Complex, Fort 
        Holabird, Maryland (sec. 2863)

      The Senate amendment contained a provision (sec. 2830A) 
that would authorize the Secretary of the Army to convey to the 
owner of the Cummins Apartment Complex, at fair market value, 
six acres of real property at Fort Holabird, Maryland that 
underlies the Cummins Apartment Complex.
      The House bill contained no similar provision.
      The House recedes.

Modification of existing land conveyance, Army property, Hamilton Air 
        Force Base, California (sec. 2864)

      The House bill contained a provision (sec. 2837) that 
would modify section 9099(e) of the National Defense 
Appropriations Act for Fiscal Year 1993 (Public Law 102-396), 
which permitted the Secretary of the Army to sell certain 
parcels of property at the former Hamilton Air Force Base, 
California, as described in the Agreement and Modification, 
dated September 25, 1990, between the Department of the 
Defense, the General Services Administration, and the 
purchaser. The House provision would authorize the Secretary of 
the Army to convey to the City of Novato, California, any 
unpurchased property described in section 9099(e) of the 
National Defense Appropriations Act for Fiscal Year 1993 
(Public Law 102-396), for use in establishing schools and park 
areas. Under this provision, the City would be required to 
provide any proceeds received from subsequent sale of the 
property, within the next ten years, to the Secretary of the 
Army.
      The Senate amendment contained no similar provision.
      The Senate recedes with technical amendment.

                       part ii--navy conveyances

Transfer of jurisdiction, Naval Weapons Industrial Reserve Plant, 
        Calverton, New York (sec. 2865)

      The House bill contained a provision (sec. 2823) that 
would authorize the Secretary of the Navy to transfer to the 
Secretary of Veterans Affairs, without reimbursement, 
approximately 150 acres at the Naval Weapons Industrial Reserve 
Plant, Calverton, New York. The property would be conveyed for 
use as a national cemetery.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

Modification of land conveyance, Naval Weapons Industrial Reserve 
        Plant, Calverton, New York (sec. 2866)

      The House bill contained a provision (sec. 2835) that 
would modify the condition of conveyance of the Naval Weapons 
Industrial Reserve Plant, Calverton, New York, as authorized in 
the Military Construction Authorization Act for Fiscal 1995 
(Division B of Public Law 103-335; 108 Stat. 3061). The 
modification would amend the purpose of the conveyance. The 
provision would also strike the Department of Navy's 
reversionary interest in the property, and, in lieu thereof, 
authorize the Secretary to lease the facility to the Community 
Development Agency, in exchange for security, fire protection, 
and maintenance services, until the property is conveyed by 
deed.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would retain 
the purpose of the conveyance, as currently authorized by law.

Land conveyance alternative to existing lease authority, Naval Supply 
        Center, Oakland, California (sec. 2867)

      The House bill contained a provision (sec. 2833) that 
would amend section 2834(b) of the Military Construction 
Authorization Act for Fiscal Year 1993, (Division B of Public 
Law 103-160) and section 2821 of the Military Construction 
Authorization Act for Fiscal Year 1995 (Division B of Public 
Law 103-337) to authorize the Secretary of the Navy to convey 
to the City of Oakland, California, the Port of Oakland, 
California, or the City of Alameda, California, without 
consideration, in lieu of an existing lease, property at the 
Naval Supply Center, under such terms as the Secretary 
considers appropriate. The exact acreage of the real property 
that would be conveyed would be determined by a survey that is 
satisfactory to the Secretary, and the cost for such survey 
shall be borne by the recipient of the property.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
the City of Richmond, California as an authorized recipient of 
the property to be conveyed.

Land conveyance, Naval Weapons Industrial Reserve Plant, McGregor, 
        Texas (sec. 2868)

      The House bill contained a provision (sec. 2830) that 
would authorize the Secretary of the Navy to convey to the City 
of McGregor, Texas, without consideration, all right, title, 
and interest of the United States in a parcel of real property, 
including improvements thereon, containing the Naval Weapons 
Industrial Reserve Plant. The conveyed property would be used 
for purposes of economic redevelopment. Until the real property 
is conveyed by deed, the Secretary would be permitted to lease 
the facility of the City in exchange for security, fire 
protection, and maintenance services. The Secretary would be 
authorized to convey other fixtures located on the property if 
such equipment can be reinstituted after the conveyance.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Land conveyance, Naval Surface Warfare Center, Memphis, Tennessee (sec. 
        2869)

      The Senate amendment contained a provision (sec. 2838) 
that would authorize the Secretary of the Navy to convey to the 
Memphis and Shelby County Port Commission, Memphis, Tennessee, 
26 acres of land, including a 1250 ton stiff leg derrick crane, 
located at the Carderock Division, Naval Surface Warfare 
Center, Memphis Detachment, President's Island, Memphis, 
Tennessee. As consideration for the conveyance, the Port 
Commission shall grant a restrictive easement consisting of 
approximately 100 acres that is adjacent to the Memphis 
Detachment. If the value of the easement granted by the Port is 
less than the fair market value of the real property conveyed 
by the Navy, the Secretary and the Port would jointly determine 
the appropriate additional compensation. The Secretary would 
deposit any cash proceeds received as part of the transaction, 
into the special account established under section 204(h)(2) of 
the Federal Property and Administrative Services Act of 1949.
      The House bill contained no similar provision.
      The House recedes.

Land conveyance, Navy property, Fort Sheridan, Illinois (sec. 2870)

      The Senate amendment contained a provision (sec. 2842) 
that would authorize the Secretary of the Navy to convey to a 
transferee, selected through a competitive process, all right, 
title, and interest of the United States in a parcel of real 
property, and improvements thereon, at Fort Sheridan, Illinois, 
consisting of approximately 182 acres and comprising the Navy 
housing areas at Fort Sheridan. As consideration, the 
transferee would convey to the United States a parcel of land, 
acceptable to the Secretary, located not more than 25 miles 
from the Great Lakes Naval Training Center, Illinois, and 
located in an area having similar social and economic 
conditions as the area in which Fort Sheridan is located. The 
transferee would also be required to: construct replacement 
housing, support facilities, and infrastructure; pay the cost 
of relocating the Navy personnel; and provide for the education 
of dependents in schools that meet, and would continue to meet, 
standards established by the Secretary of the Navy, even after 
the enrollment of dependents, regardless of the receipt of 
federal impact aid by such schools or school districts. The 
Secretary of the Navy would be required to ensure that the fair 
market value of the consideration provided by the transferee is 
not less than the fair market value of the real property 
conveyed by the Secretary.
      The House bill contained no similar provision.
      The House recedes with technical amendment.

Land conveyance, Naval Communications Station, Stockton, California 
        (sec. 2871)

      The Senate amendment contained a provision (sec. 2844) 
that would authorize the Secretary of the Navy, with the 
concurrence of the Administrator of General Services and the 
Secretary of Housing and Urban Development, to convey to the 
Port of Stockton, California, all right, title, and interest in 
approximately 1,450 acres of real property at the Naval 
Communications Station, Stockton, California. The conveyance 
may be as a public benefit conveyance if the Port satisfies the 
criteria established in section 203 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 484). If the 
Port does not satisfy such criteria, the conveyance would be 
for fair market value. As a condition for the conveyance, the 
Port would be required to agree to maintain, under current 
terms and conditions, existing Federal leases of property at 
the Station. The Secretary would be authorized to lease the 
property to the Port until the property is conveyed by deed.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete the 
requirement that the conveyance be subject to the concurrence 
of the Administrator of General Service and the Secretary of 
Housing and Urban Development. The conferees intend that the 
Secretary would not carry out the conveyance unless it is 
determined that no department or agency of the Federal 
Government will accept the transfer of the property.

Lease of property, Naval Air Station and Marine Corps Air Station, 
        Miramar, California (sec. 2872)

      The conferees include a new section that would authorize 
the Secretary of the Navy to enter into a lease agreement with 
the City of San Diego, California, that would provide for the 
City's use of land at the Naval Air Station or Marine Corps Air 
Station Miramar, California, as a municipal solid waste 
landfill, and for other purposes related to the management of 
solid waste. The provision would also allow the Secretary to 
receive in-kind consideration under the lease, and to use any 
rental money received to carry out environmental programs or 
improvement projects to enhance quality of life programs for 
personnel stationed at the Naval Air Station or Marine Corps 
Air Station. This provision would provide the sole authority 
for entering into the described lease with the City of San 
Diego.

                    part iii--air force conveyances

Land acquisition or exchange, Shaw Air Force Base, South Carolina (sec. 
        2874)

      The House bill contained a provision (sec. 2822) that 
would authorize the Secretary of the Air Force to acquire, by 
means of an exchange of property, acceptance as a gift, or 
other means that would not require the use of appropriated 
funds, all right, title, and interest in a parcel of real 
property, with improvements, consisting of approximately 1,100 
acres adjacent to Shaw Air Force Base, Sumter, South Carolina.
      The Senate amendment contained an identical provision. 
The conference agreement includes this provision.

Land conveyance, Elmendorf Air Force Base, Alaska (sec. 2875)

      The House bill contained a provision (sec. 2832) that 
would authorize the Secretary of the Air Force to sell to a 
private person a parcel of real property consisting of 
approximately 32 acres located at Elmendorf Air Force Base, 
Alaska. As consideration for the sale, the purchaser would be 
required to provide appropriate maintenance for the apartment 
complex located on the property to be conveyed and used by 
members of the armed forces and their dependents stationed at 
the Elmendorf Air Force Base. The cost of any surveys necessary 
for the sale of real property would be borne by the purchaser.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

Land conveyance, Radar Bomb Scoring Site, Forsyth, Montana (sec. 2876)

      The Senate amendment contained a provision (sec. 2839) 
that would authorize the Secretary of the Air Force to convey 
to the City of Forsyth, Montana, without consideration, 
approximately 58 acres, with improvements, comprising the 
support complex and recreational facilities of the former Radar 
Bomb Scoring Site, Forsyth, Montana. The conveyance would be 
subject to the condition that the City use the property for 
housing and recreational purposes.
      The House bill contained no similar provision.
      The House recedes.

Land conveyance, Radar Bomb Scoring Site, Powell, Wyoming (sec. 2877)

      The Senate amendment contained a provision (sec. 2840) 
that would authorize the Secretary of the Air Force to convey 
to the Northwest College Board of Trustees, without 
consideration, approximately 24 acres, with improvements, 
comprising the support complex, recreational areas, and housing 
facilities at the former Radar Bomb Scoring Site, Powell, 
Wyoming. The conveyance would be subject to the condition that 
the Board use the property conveyed for housing and 
recreational purposes, and for such other purposes as the 
Secretary and the Board jointly determine appropriate.
      The House bill contained no similar provision.
      The House recedes.

Land conveyance, Avon Park Air Force Range, Florida (sec. 2878)

      The House bill contained a provision (sec. 2827) that 
would authorize the Secretary of the Air Force to convey, 
without consideration, a parcel of real property, with 
improvements, within the boundaries of the Avon Park Air Force 
Range near Sebring, Florida to Highlands County, Florida. The 
property would be conveyed for the operation of a juvenile or 
other correctional facility.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

            Subtitle E--Land Conveyances Involving Utilities

Conveyance of resources recovery facility, Fort Dix, New Jersey (sec. 
        2881)

      The House bill contained a provision (sec. 2841) that 
would authorize the Secretary of the Army to convey to 
Burlington County, New Jersey, a parcel of real property at 
Fort Dix, New Jersey, consisting of approximately two acres and 
containing the Fort Dix resource recovery facility.
      The Senate amendment contained a similar provision.
      The Senate recedes with an amendment that would increase 
the acreage to be conveyed to six acres and would make other 
technical corrections.

Conveyance of water and wastewater treatment plants, Fort Gordon, 
        Georgia (sec. 2882)

      The House bill contained a provision (sec. 2842) that 
would authorize the Secretary of the Army to convey to the City 
of Augusta, Georgia, all rights, title, and interest of the 
United States in several parcels of real property consisting of 
approximately seven acres each and containing water and 
wastewater treatment plants and distribution and collection 
systems. In consideration of the conveyance, the City of 
Augusta would accept the water and wastewater treatment plants 
and distribution and collection systems in their existing 
condition and provide water and sewer service to Fort Gordon, 
Georgia at a rate established by the appropriate State or 
Federal regulatory authority.
      The Senate amendment contained a similar provision.
      The Senate recedes with a technical amendment.

Conveyance of electricity distribution system, Fort Irwin, California 
        (sec. 2883)

      The House bill contained a provision (sec. 2843) that 
would authorize the Secretary of the Army to convey to the 
Southern California Edison Company, California, all right, 
title, and interest of the United States in the electrical 
distribution system located at Fort Irwin, California. In 
consideration for the conveyance, the Southern California 
Edison Company would be required to accept the electrical 
distribution system in its existing condition and provide 
electrical service to Fort Irwin at a rate established by the 
appropriate State or Federal regulatory authority.
      The Senate amendment contained a similar provision.
      The Senate recedes with a technical amendment.

Conveyance of water treatment plant, Fort Pickett, Virginia (sec. 2884)

      The Senate amendment contained a provision (sec. 2835) 
that would authorize the Secretary of the Army to convey to the 
Town of Blackstone, Virginia, without reimbursement, the water 
treatment plant located at Fort Pickett, Virginia. In exchange, 
the town would provide water and sewer services to Fort 
Pickett, at a rate negotiated by the Secretary of the Army and 
approved by the appropriate federal and state regulatory 
authorities.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of the Army to convey to the Town of Blackstone, 
Virginia, the water treatment plant located at Fort Pickett, 
Virginia. The amendment would also modify paragraph (c) by 
clarifying that the water rights granted to the town would be 
determined pursuant to the law of the Commonwealth of Virginia.

                       Subtitle F--Other Matters

Authority to use funds for certain educational purposes (sec. 2891)

      The Senate amendment contained a provision (sec. 2813) 
that would amend section 2008 of title 10, United States Code, 
to authorize the Department of Defense to continue the use of 
appropriated funds for repair, maintenance, and construction of 
Department of Education school facilities located on military 
installations.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Department of Defense Laboratory Revitalization Demonstration Program 
        (sec. 2892)

      The Senate amendment contained a provision (sec. 2861) 
that would establish a test program to allow the heads of 
selected defense laboratories greater flexibility to undertake 
facility modernization initiatives. For test program 
laboratories, the provision would raise the minor construction 
threshold, from $1.5 million to $3.0 million, for projects that 
the Secretary of Defense may carry out without specific 
authorization. The provision would also raise the threshold for 
minor military construction projects requiring prior approval 
of the Secretary of Defense, from $500,000 to $1.5 million. 
Finally, the provision would raise, for the selected 
laboratories, the threshold, from $300,000 to $1.0 million, for 
the value of any unspecified military construction project for 
which operation and maintenance funds may be used.
      The provision would provide for the expiration of the 
test authority on September 30, 2000. It would also require the 
Secretary of Defense to designate participating laboratories 
before the test may begin, establish a review procedure for 
each project to be funded under this section, and report to 
Congress on the lessons learned from the test program one year 
before the program is terminated.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Authority for Port Authority of State of Mississippi to use Navy 
        property at Naval Construction Battalion Center, Gulfport, 
        Mississippi (sec. 2893)
      The House bill contained a provision (sec. 2852) that 
would authorize the Secretary of the Navy to enter into an 
agreement with the Port Authority of the State of Mississippi 
to permit joint use of real property and associated 
improvements comprising up to 50 acres located at the Naval 
Construction Battalion Center, Gulfport, Mississippi. The 
requirement would be for a period not to exceed 15 years, and 
the Port Authority would be required to pay fair market rental 
value as determined by the Secretary. The Secretary could not 
enter into any agreement until after the end of a 21-day period 
beginning on the date on which the Secretary submits a report 
to Congress explaining the terms of the proposed agreement and 
describing the consideration that the Secretary would expect to 
receive under the agreement.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Prohibition on joint use of Naval Air Station and Marine Corps Air 
        Station, Miramar, California (sec. 2894)
      The House bill contained a provision (sec. 2853) that 
would prohibit the Secretary of the Navy from entering into any 
agreement that would provide for the regular use of Naval Air 
Station, Miramar, California, by civil aircraft.
      The Senate amendment contained a similar provision.
      The Senate recedes with a clarifying amendment.
Report regarding Army water craft support facilities and activities 
        (sec. 2895)
      The House bill contained a provision (sec. 2854) that 
would require the Secretary of the Army to submit, not later 
than February 15, 1996, a report describing the Army's water 
craft support facilities and activities. The report would 
include actions that can be taken to close the Army Reserve 
Facility located in Marcus Hook, Pennsylvania.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Residual value reports (sec. 2896)
      The Senate amendment contained a provision (sec. 2864) 
that would require the Secretary of Defense, in coordination 
with the Director of the Office of Management and Budget, to 
submit to the congressional defense committees a status report 
on the results of residual value negotiations between the 
United States and Germany. The report would be provided within 
30 days after the Office of Management and Budget receives the 
results of the negotiations.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Sense of Congress and report regarding Fitzsimons Army Medical Center, 
        Colorado (sec. 2897)
      The Senate amendment contained a provision (sec. 2830C) 
that would express the Sense of Congress that the Secretary of 
the military departments should consider the expedited transfer 
of facilities to local redevelopment authorities while the 
facilities are still operational. The provision would also 
require the Secretary of the Army to provide a report, within 
180 days of enactment of the National Defense Authorization 
Bill for Fiscal Year 1996, on the actions taken to convey the 
Fitzsimons Army Medical Center, Colorado.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees agree that this section is intended to 
support current efforts to redevelop the Fitzsimons Army 
Medical Center. The conferees agree that this section is not 
intended to circumvent the 1995 recommendations of the Defense 
Base Closure and Realignment Commission, or other applicable 
laws.

                   legislative provisions not adopted

Land conveyance, Naval Air Station, Pensacola, Florida
      The House bill contained a provision (sec. 2826) that 
would authorize the Secretary of the Navy to convey to West 
Florida Developers, Inc. a parcel of unimproved real property, 
consisting of approximately 135 acres. As consideration for the 
conveyance of real property, West Florida Developers, Inc. 
would agree to restrict the use of all lands located within the 
Accident Potential Zone of Naval Air Station Pensacola, owned 
by West Florida Developers, Inc. The cost of any surveys 
necessary for the conveyance shall be borne by West Florida 
Developers, Inc.
      The Senate amendment contained no similar provision.
      The House recedes.
Expansion of authority to sell electricity
      The House bill contained a provision (sec. 2851) that 
would amend section 2483(a) of title 10, United States Code, to 
expand the authority of the Department of Defense to permit the 
military departments to take advantage of changing electric 
power marketing conditions by increasing the available option 
to outsource for energy on military installations.
      The Senate amendment contained no similar provision.
      The House recedes.
Clarification of funding for environmental restoration at installations 
        approved for closure or realignment in 1995
      The Senate amendment contained a provision (sec. 2823) 
that would authorize the Department of Defense to fund 
environmental restoration at installations selected for closure 
by the 1995 Defense Base Closure and Realignment Commission 
with funds authorized for the Defense Environmental Restoration 
Account for fiscal year 1996. After fiscal year 1996, 
environmental restoration for these installations would be 
funded using the Defense Base Closure and Realignment Account.
      The House bill contained no similar provision.
      The Senate recedes.

Report on the disposal of property, Fort Ord Military Complex, 
        California

      The Senate amendment contained a provision (sec. 2841) 
that would require the Secretary of Defense to submit a report 
to the Congress describing the plans for the disposal of a 
parcel of real property consisting of approximately 477 acres 
at the former Fort Ord Military Complex.
      The House bill contained no similar provision.
      The Senate recedes.

Land conveyance, William Langer Jewel Bearing Plant, Rolla, North 
        Dakota

      The Senate amendment contained a provision (sec. 2845) 
that would authorize the Administrator of the General Services 
Administration to convey to the Job Development Authority of 
the City of Rolla, without consideration, approximately 9.77 
acres of real property, comprising the former Army-owned 
William Langer Jewel Bearing Plant, Rolla, North Dakota. The 
property and facility are to be used for economic development 
in order to replace economic activity lost at the plant.
      The House bill contained no similar provision.
      The Senate recedes.

Renovation of the Pentagon Reservation

      The Senate amendment contained a provision (sec. 2865) 
that would require the Secretary of Defense to take such 
actions necessary to reduce the total cost of the renovation of 
the Pentagon Reservation to not more than $1.1 billion.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that, as required by section 8149 of 
the Fiscal Year 1995 Department of Defense Appropriations Act 
(Public Law 103-335), the Secretary of Defense certified on 
December 19, 1994 that the total cost of the renovation would 
not exceed $1.2 billion. Although the department is in the 
fifth year of a 15 year renovation of the Pentagon, the 
conferees reiterate their view that this project should be 
executed at the lowest cost possible. Earlier this year, the 
Secretary of Defense appointed a steering committee to review 
the ongoing renovation project. The Secretary of Defense is 
directed to submit a report to the Senate Committee on Armed 
Services and the House Committee on National Security by 
February 15, 1996 on the findings of the steering committee 
review and on opportunities to achieve further savings.

  Title XXIX--Land Conveyances Involving Joliet Army Ammunition Plant

                         legislative provisions

                     legislative provisions adopted

Title XXIX--Land Conveyances involving Joliet Army Ammunition Plant, 
        Illinois
      The Senate amendment contained provisions (secs. 2851-
2857) that would authorize the Secretary of the Army to 
transfer to the Secretary of Agriculture approximately 19,000 
acres of land located at the Joliet Army Ammunition Plant to 
establish the Midewin Tallgrass Prairie. The provision would 
also authorize the Secretary of the Army to convey, without 
compensation, to the Secretary of Veterans Affairs 910 acres of 
land at Joliet Army Ammunition Plant to establish a national 
cemetery.
      The provision would further authorize the Secretary of 
the Army to convey to the County of Will, Illinois, without 
consideration, 425 acres of land at Joliet Army Ammunition 
Plant to be used for a landfill. As a part of this conveyance, 
the County of Will would be required to permit Federal 
Government use of the landfill at no cost.
      The provision would also authorize the Secretary of the 
Army to convey, at fair market value, 1,900 acres and 1,100 
acres of land located at the Joliet Army Ammunition Plant to 
the Village of Elwood, Illinois, and the City of Wilmington, 
Illinois, respectively, to establish industrial parks. All 
proceeds from any future sale of these parcels or portions of 
these parcels would be remitted to the Secretary of the Army.
      The House bill contained no similar provision.
      The House recedes with an amendment that would 
incorporate the language contained in H.R. 714, an act that 
would establish the Midewin National Tallgrass Prairie in the 
State of Illinois, as passed by the House of Representatives in 
the 104th Congress. The House amendment would modify H.R. 714 
to:
      (1) make technical corrections;
      (2) authorize the Secretary of the Army to transfer 982 
acres of real property to the Secretary of Veterans Affairs to 
establish a national cemetery;
      (3) authorize the Secretary of the Army to convey to Will 
County, Illinois, without consideration, 455 acres of real 
property for use as a landfill;
      (4) authorize the Secretary of the Army to convey to the 
State of Illinois, at fair market value, 3,000 acres of real 
property to the State of Illinois for economic redevelopment. 
The State of Illinois would be required to pay the Army fair 
market value for the property within twenty years after the 
date of the conveyance;
      (5) require the Governor of the State of Illinois to 
consult with the Mayors of the Village of Elwood, Illinois, and 
the City of Wilmington, Illinois, in establishing a 
redevelopment authority to oversee the development of the real 
property conveyed to the State; and
      (6) clarify the responsibility of the Department of the 
Army, and other parties to the conveyance, for environmental 
remediation and restoration of the real property comprising the 
Joliet Army Ammunition Plant.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      Title XXXI--Department of Energy National Security Programs

Overview

      The budget request for fiscal year 1996 contained an 
authorization of $11,178.5 million for the Department of Energy 
National Security Programs. The House bill would authorize 
$10,403.6 million. The Senate amendment would authorize 
$11,178.7 million. The conferees recommended an authorization 
of $10,618.2 million. The funding level was largely due to a 
reduced funding in Environmental Restoration and Waste 
Management. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.


                         legislative provisions

                     legislative provisions adopted

         Subtitle A--National Security Programs Authorizations

Weapons Activities (sec. 3101)

      The budget request included $3.540 billion for weapons 
activities. The House bill contained a provision (sec. 3101) 
that would authorize $3.599 billion for operating expenses, 
plant projects, and capital equipment for activities necessary 
to carry out the Department of Energy stockpile stewardship and 
stockpile management programs.
      The Senate amendment contained a provision (sec. 3101) 
that would authorize Department of Energy weapons activity 
funding for fiscal year 1996 in the amount of $3.654 billion.
      The conferees agree to authorize $3.460 billion for 
weapons activities, a reduction of $80.0 million from the 
requested amount. This overall net reduction is the result of a 
$55.7 million increase to the requested amount for all 
authorized weapons activities, combined with $135.6 million in 
adjustment reductions. The adjustment reductions are primarily 
based on larger amounts of prior year balances than those 
proposed in the Department of Energy (DOE) budget request. The 
$55.7 million increase in weapons activities is necessary to 
fund the requirements levied on the DOE as a result of the 
Nuclear Posture Review. The increase is required for two major 
reasons: to fund a modern stockpile refabrication capacity 
sized to the requirements of the Nuclear Posture Review and to 
fund a means to assure confidence in stockpile reliability and 
safety without full-scale, underground nuclear testing. The 
increase is also appropriate given the historic downward trend 
in funding for weapons activities (75% from fiscal year 1985 to 
fiscal year 1995).
      The conferees remain concerned about the near-term 
viability of U.S. strategic deterrence, particularly if the 
United States refrains from remanufacturing the weapons in the 
nuclear stockpile with the most efficient fabrication 
techniques. In relation to the needs of nuclear weapons 
refabrication and recertification, the conferees recommend that 
the DOE laboratories and plants enter into appropriate 
industrial partnerships of mutual benefit.
      The budget request included $1.016 billion for core 
stockpile stewardship. The conferees agree to authorize $1.078 
billion for core stockpile stewardship. The conferees authorize 
the use of stockpile stewardship funds, as follows: (1) 
accelerated strategic computing initiative, $40.0 million; (2) 
hydronuclear experiment preparation, $30.0 million; (3) dual 
revalidation, $10.0 million.
      Of the $150.0 million authorized for a redirected 
technology transfer program, the conferees recommend the 
following amounts: (1) advanced design and production 
technology (ADAPT), $20.0 million; (2) AMTEX, $10.0 million; 
(3) enhanced stockpile surveillance, $20.0 million; (4) 
industrial partnerships in direct support of stockpile 
stewardship program, $25.0 million; (5) industrial partnerships 
in direct support of stockpile management program, $25.0 
million; (6) completion of highest priority CRADA's that remain 
from fiscal year 1995, $50.0 million.
      The budget request included $1.907 billion for the 
stockpile management program. The conferees agree to authorize 
$2.025 billion for the stockpile management program. The 
conferees authorize the following: (1) manufacturing 
infrastructure/technology modernization at the four production 
plants, $143.0 million; (2) fellowship program (four plants), 
$10.0 million; (3) radiological/nuclear accident response, 
$70.9 million; (4) tritium source, $50.0 million.
      The conferees agree to authorize an additional $118.2 
million for stockpile management activities. The increase is 
necessary to remedy weapons refabrication planning deficiencies 
identified at the DOE production complex. These remedies are 
required to begin meeting the objectives of the Nuclear Posture 
Review.
      The conferees recommend that in following fiscal years 
the Department request the full amount required to meet 
Department of Defense and programmatic requirements for weapons 
activities. The conferees find that the DOE Five Year National 
Security Budget Plan, which assigns major, arbitrary, outyear 
budget cuts to weapons activities, and to other critical 
programs within Atomic Energy Defense Activities, does not 
adequately address the budget requirements necessary to 
implement the Nuclear Posture Review.

Environmental restoration and waste management (sec. 3102)

      The budget request included $6.008 billion for 
environmental restoration and waste management.
      The House bill contained a provision (sec. 3102) that 
would authorize $5.265 billion for operating expenses, plant 
projects, and capital equipment for defense environmental 
restoration and waste management activities.
      The Senate amendment contained a provision (sec. 3102) 
that would authorize $5.906 billion.
      The conferees authorize $5.557 billion for defense 
environmental restoration and waste management activities, a 
reduction of $451.0 million from the request. The reduction 
would be partially offset by the availability of prior year 
funds that have not been obligated, or if obligated, have not 
been expended and would not be needed for the projects that 
were the basis for obligation.
      The conferees support the recent Department of Energy 
strategic realignment initiatives, taken in connection with the 
Department's headquarters functions, to include the 
consolidation of space, the elimination of duplication between 
field and headquarters activities, and the reduction of 
headquarters support service contractors. The conferees direct 
that funding cuts, to the maximum extent possible, continue to 
be absorbed through reduction of headquarters personnel and 
activities. With limited budgets, it is critical that every 
available dollar be used for actual cleanup activities in the 
field and that the Department continue its efforts to reduce 
bureaucratic layers and organizational redundancies at 
headquarters.
      The conferees understand that the Department has employed 
support service contractors to perform inherently governmental 
or core governmental functions at the headquarters level. The 
conferees direct the Department to discontinue that practice 
and to transfer savings to field operations. The conferees 
recognize that in some cases it may be more cost effective to 
seek outside technical expertise rather than employ permanent 
government personnel.
      The conferees authorize an additional $60.0 million above 
the budget request in the environmental restoration sub-account 
to initiate an accelerated cleanup program at sites where such 
action could result in long-term cost savings to the 
Department. The conferees intend for the Department to 
carefully evaluate opportunities for such savings at all 
Department of Energy sites. Guidelines for selection of sites 
that are eligible for accelerated cleanup are discussed 
elsewhere in this report.
      The conferees are particularly concerned about the 
projected use of several Department of Energy facilities for 
additional responsibilities with respect to the processing, 
treatment, and interim storage of foreign and domestic sourced 
spent fuel rods. Therefore, the conferees direct, elsewhere in 
this statement of managers, the initiation of several projects 
to mitigate these effects. The conferees also direct the 
initiation of the preconstruction design and engineering for 
dry storage and advanced mixed waste treatment facilities at 
the Idaho National Engineering Laboratory. In this regard, the 
conferees agree to authorize additional funding for the spent 
nuclear fuels canister storage and stabilization facility at 
Hanford, Washington.
      Prior to, and during conference, the Department submitted 
to the Congress several separate amendments (additions and 
deletions) to the list of projects included in the original 
budget request. Consistent with the amended budget submission, 
the conferees agree to provide additional funding for certain 
projects and to delete a number of other projects. Given the 
lead times associated with budget preparation, the conferees 
recognize that it is difficult to accurately project the status 
or requirements for every activity. However, the conferees 
encourage the Department to refrain from submitting multiple 
amendments to budget requests during conference.
      In an effort to track carryover balances, the conferees 
direct the Department to submit a report to the congressional 
defense committees, contemporaneous with the fiscal year 1997 
budget request. The report should contain the following: (1) an 
end of current fiscal year projection of uncosted and 
unobligated carryover balances; (2) target end of current 
fiscal year carryover balances, by program, based on a model of 
the minimum amount necessary for program operations and 
continuity; (3) a comparison of the differences between the 
projected and target carryover balances, by program; (4) a 
justification for the difference between the projected and 
targeted carryover balances; and (5) the amount of unjustified 
carryover balances, based on the calculation in (2). The 
conferees direct the Department to report the carryover 
balances within the Environmental Restoration and Waste 
Management Program, and those balances across all Atomic Energy 
Defense Activities accounts. The conferees believe that 
unjustified carryover balances should be applied to reduce the 
Department's budget request for the next fiscal year.

Other Defense Activities (sec. 3103)

      The budget request included $1.432 billion for Other 
Defense Activities of the Department of Energy (DOE) for fiscal 
year 1996. The House bill contained a provision (sec. 3104) 
that would authorize $1.329 billion for Other Defense 
Activities.
      The Senate amendment contained a provision (sec. 3103) 
that would authorize $1.408 billion for this group of programs, 
a decrease of $24.0 million below the requested amount.
      The conferees agree to authorize $1.352 billion for these 
programs.
      The conferees also direct that the five-year plans for 
the following activities be provided, not later than January 
15, 1996, to the congressional defense committees: security 
investigations; nuclear safeguards and security; nuclear 
safety; worker and community transition; fissile materials 
disposition; naval reactors; nonproliferation; and arms 
control.

                             Naval Reactors

      The conferees urge the Naval Reactors Program to maintain 
the high health and safety standards that have resulted in both 
an unprecedented record of safe operation and have become the 
standard for safe nuclear power operations around the world. 
The conferees also support the program's continued use of the 
Advanced Test Reactor (ATR). This facility is completely unique 
in the United States and is essential to the continuation of 
the advanced materials subprogram. This subprogram provides 
experimental data that is the basis for both present safety 
standards and future power plant designs.

                    Other National Security Programs

                    Nuclear Safeguards and Security

      The conferees believe that the Secretary of Energy should 
carefully balance investment within the sub-programs of the 
Nuclear Safeguards and Security Program to safeguard Department 
of Energy nuclear weapons, nuclear materials, and facilities 
against theft, sabotage, and terrorist activity. Such a 
balanced approach should remain the highest priority of the 
program. The conferees authorize additional funding for 
declassification activities elsewhere in this statement of 
managers, but this should not be construed as an indication 
that the Congress in any way is indifferent to the protection 
of these DOE properties. In view of the growing severity of 
domestic and international terrorism, the conferees urge the 
DOE to take increased steps to safeguard the weapons grade 
material and weapons under its control.

                   Office of Security Investigations

      As a result of recent major incidents of domestic and 
international terrorism, the conferees believe that the Office 
of Security Investigations should determine the need for more 
frequent reinvestigations of individuals with actual access to 
weapons grade material. The conferees direct that the Secretary 
provide the congressional defense committees with a description 
of the determination rendered, not later than March 30, 1996. 
The Secretarial submission should include the Department's 
recommendations and the rationale for the determination. The 
conferees also recommend a more detailed treatment of any new 
initiatives and emphases in the fiscal year 1997 budget 
submission.

                     Office of Security Evaluations

      The conferees believe that the Office of Security 
Evaluations should reevaluate its present policies, and 
evaluate and develop new policies and actions, if required, to 
improve the effectiveness of its program. The conferees direct 
that the Secretary provide an explanation of the results of 
this reevaluation to the appropriate congressional defense 
committees, not later than March 30, 1996. The conferees also 
recommend a more detailed treatment of the results of its 
policies in the fiscal year 1997 budget submission.

                        Office of Nuclear Safety

      The conferees believe that the Office of Nuclear Safety 
should implement the program with an overall cost/benefit 
analysis applied as a major consideration. That approach would 
ensure that available resources would be used in a fiscally 
responsible manner, and provide reductions in significant risks 
to employees. Resources should not be used to fund marginal 
improvements that provide minimal safety benefits. The 
conferees direct the Secretary to implement cost/benefit 
performance as a criterion for the Office of Nuclear Safety.

                    Worker and Community Transition

      The conferees direct the Worker and Community Transition 
program to provide more detailed information on the 
effectiveness of its activities, through the end of fiscal year 
1995, in the fiscal year 1997 budget request.

               Fissile Materials Control and Disposition

      The conferees are concerned that the Fissile Materials 
Control and Disposition Program does not have a wide range of 
technology and cost effectiveness assessments in its 
programmatic environmental impact statement (PEIS). Specific 
direction is provided in this Act to consider a variety of 
nuclear reactors in this regard. The committees of jurisdiction 
intend to explore these issues in greater depth with the 
Department of Energy during future congressional hearings.

                           Emergency Response

      The conferees direct that the funds for the Office of 
Emergency Response, within the Office of Non-proliferation and 
National Security, shall be allocated within the Other Defense 
Programs category, not from within any other part of the Atomic 
Energy Defense Activities. The conferees further direct that in 
fiscal year 1997, and subsequent fiscal years, the funding 
requested for Atomic Energy Defense Activities Program 
Direction should be allocated separately within each of the 
four top level categories of that account, and not aggregated 
within one such category, as was done in the fiscal year 1996 
budget request.

Nonproliferation and verification research and development and arms 
        control

      The budget request included $226.1 million for 
nonproliferation and verification research and development, and 
$162.3 million for arms control.
      The House bill would authorize $163.5 million for 
nonproliferation and verification research and development, a 
$62.6 million reduction to the budget request; and $147.4 
million for arms control, a $14.9 million reduction to the 
budget request.
      The Senate amendment would authorize the budget request.
      The conferees authorize $224.9 million for 
nonproliferation and verification research and development, 
consistent with the amended budget request from the Department 
of Energy, and $161.0 million for arms control.
      Due to the increase in international terrorism and 
attempts to acquire weapons grade nuclear materials by criminal 
organizations, the conferees authorize $3.0 million be 
available from nonproliferation and verification research and 
development for the development of forensics capability to 
detect and track shipments abroad. Further, the conferees 
direct the Secretary of Energy to broaden involvement in this 
area to include the entire Department of Energy weapons 
complex, including the Savannah River Site, Pacific Northwest 
Laboratory, Idaho National Engineering Laboratory, and 
industry.
      The conferees direct the Secretary of Energy to submit a 
five-year nonproliferation research and development program 
plan to Congress by March 30, 1996. The plan shall include a 
program strategy, description of the program and project 
objectives, deliverables, and milestones for each project 
within the program. The plan shall also identify the specific 
organization customers for each project and subprogram.
      The conferees concur with recommendations in the Senate 
report (S. Rept. 104-112) that the Department of Energy, in 
coordination with the International Atomic Energy Agency 
(IAEA), should conduct a study on nuclear reactor safety issues 
in the Ukraine and report, with recommendations, to Congress on 
the safety issues that need to be addressed. The conferees 
direct that the report be broadened to include nuclear reactors 
in Russia. However, the conferees agree that funding to conduct 
a study on nuclear reactor safety study in Ukraine and Russia 
would more appropriately be funded in the international affairs 
budget and the civilian nuclear reactor portion of the energy 
budget, and therefore, no funds are authorized to conduct this 
study from nonproliferation and verification research and 
development or any other Atomic Energy Defense Activities 
account.

Defense nuclear waste disposal (sec. 3104)

      The budget request included $198.4 million for defense 
nuclear waste disposal activities of the Department of Energy 
for fiscal year 1996.
      The House bill contained a provision (sec. 3105) that 
would authorize $198.4 million for this purpose.
      The Senate amendment contained an identical provision.
      The conference agreement includes a provision that would 
authorize $248.4 million for defense nuclear waste disposal 
activities of the Department of Energy for fiscal year 1996.

                Subtitle B--Recurring General Provisions

Reprogramming (sec. 3121)

      The House bill contained a provision (sec. 3121) that 
would prohibit the reprogramming of funds in excess of 110 
percent of the amount authorized for the program concerned, or 
in excess of $1.0 million above the amount authorized for the 
program unless the Secretary of Energy notifies the 
congressional defense committees and a period of 30 days has 
elapsed subsequent to the receipt of notification. Should the 
Department demonstrate that it has improved its procedures for 
handling reprogramming requests, the Armed Services Committee 
of the Senate and the National Security Committee of the House 
would consider a return to a more flexible reprogramming 
process.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Limits on general plant projects (sec. 3122)

      The House bill contained a provision (sec. 3122) that 
would limit the initiation of ``general plant projects'' 
authorized by the bill if the current estimated cost for any 
project exceeds $2.0 million. However, the provision would 
require the Secretary of Energy to provide the congressional 
defense committees with notification and an explanation for a 
general plant project cost variation that raises the cost of 
any project above $2.0 million.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Limits on construction projects (sec. 3123)

      The House bill contained a provision (sec. 3123) that 
would permit initiation and continuation of a Department of 
Energy construction project if the estimated cost for the 
project does not exceed 125 percent of the higher of: (1) the 
funds authorized for the project; or (2) the most recent total 
estimated cost presented to the Congress as justification for 
such project. The Secretary of Energy would submit a detailed 
report to the congressional defense committees for any project 
that exceeds such limits, and the report would be submitted 
within the 30 legislative days following a decision to initiate 
or continue such a project.
      The House provision would also specify that the 125 
percent limitation would not apply to any project with an 
estimated cost below $5.0 million.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Fund transfer authority (sec. 3124)

      The Senate amendment contained a provision (sec. 3124) 
that would authorize the transfer of Department of Energy funds 
to other agencies of the government for performance of work for 
which the funds were authorized and appropriated. The provision 
would permit another agency to merge the transferred funds with 
that agency's authorized and appropriated funds.
      The provision would also authorize the Department to 
transfer funds internally among its appropriations accounts, up 
to a limit of five percent of the authorized amount.
      The House bill contained a similar provision.
      The House recedes with an amendment that would stipulate 
that, for any such internal transfers or reprogrammings 
pursuant to this section, weapons activities shall be regarded 
by the Department as having higher priority than environmental 
management activities or other defense activities.

Authority for conceptual and construction design (sec. 3125)

      The House bill contained a provision (sec. 3125) that 
would limit the Secretary of Energy's authority to request 
construction funding until the Secretary has certified a 
conceptual design. If the cost of the conceptual design exceeds 
$3.0 million, the Secretary must request the amount from 
Congress before submitting a request for the construction 
project. The Secretary may carry out construction design 
services if their cost is less than $0.6 million. Greater costs 
for construction design would be required to be authorized by 
law.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Authority for emergency planning, design, and construction activities 
        (sec. 3126)

      The House bill contained a provision (sec. 3126) that 
would permit the Secretary of Energy to utilize available funds 
to perform planning and design for any unauthorized Department 
of Energy national security program construction project based 
on the Secretary's determination that the design must proceed 
expeditiously for the protection of public health, safety, and 
property, or to meet the needs of the national defense.
      The Senate amendment contained a similar provision (sec. 
3126).
      The Senate recedes.

Funds available for all national security programs of the Department of 
        Energy (sec. 3127)

      The House bill contained a provision (sec. 3127) that 
would authorize amounts appropriated for management and support 
activities and for general plant projects to be made available 
for use, when necessary, in connection with all national 
security programs of the Department of Energy.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Availability of funds (sec. 3128)

      The House bill contained a provision (sec. 3128) that 
would authorize amounts appropriated for operating expenses or 
for plant and capital equipment to remain available until 
expended.
      The Senate amendment contained a similar provision.
      The Senate recedes.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Authority to conduct a program relating to fissile materials (sec. 
        3131)

      The House bill contained a provision (sec. 3131) that 
would authorize the Secretary of Energy to conduct a program to 
improve fissile material protection, control, and 
accountability in Russia. The provision would also require 
notification to the Congress prior to obligation of funds.
      The Senate amendment did not contain a similar provision.
      The Senate recedes with an amendment.
      The conferees agree to a provision that would authorize 
the Secretary of Energy to conduct a program to improve fissile 
material protection, control, and accountability in Russia. The 
provision would also require the Secretary to provide a semi-
annual report to Congress on the obligation of funds for the 
preceding six month period and on the plans for obligation of 
those funds.
      The conferees direct that each report shall include the 
following: a forecast of planned expenditures, broken out by 
major program elements and program achievements; and a 
description of procedures to ensure that funds are used for the 
purposes and activities for which they were authorized. The 
report shall be submitted in classified and unclassified forms.

National Ignition Facility (sec. 3132)

      The House bill contained a provision (sec. 3132) that 
would limit the expenditure of funds appropriated for the 
National Ignition Facility (NIF) until the Secretary of Energy 
determines that the NIF does not impede U.S. nuclear non-
proliferation objectives and then notifies the Congress.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
expenditure of construction funds for the NIF until the 
Secretary makes the determination and notifies the Congress.

Tritium production program (sec. 3133)

      The House bill contained a provision (sec. 3133a) that 
would authorize $50.0 million, for a project that would provide 
a long-term source of tritium, subsequent to the Secretary of 
Energy's completion of a record of decision on the tritium 
production program and the conclusion of congressional 
hearings.
      The Senate amendment contained a provision (sec. 3131) 
that would authorize $50.0 million to conduct an assessment of 
various types of reactors and an accelerator. The provision 
would ensure that any new tritium production facility would be 
located at the Savannah River Site. It would also authorize 
$5.0 million from weapons activity funds for tritium target 
work in reactors.
      The Senate recedes with an amendment that would provide 
for: $50.0 million to establish a program to provide a tritium 
production source; $5.0 million for tritium target work to be 
administered by the Idaho National Engineering Laboratory; a 
new tritium facility at the Savannah River Site; the 
Secretary's cost/benefit comparison between performance of the 
tritium production mission and the fissile materials 
disposition mission with a single multi-purpose reactor project 
and performance of these missions with two separate projects; 
and a long-term tritium production funding plan to Congress 
within 45 days of enactment of this Act.
      The conferees direct the Secretary of Energy to establish 
both headquarters and field offices for the national tritium 
production program within Defense Programs. The conferees 
direct that these offices be adequately staffed by Federal 
technical experts in accelerators, reactors, and other relevant 
areas of science and technology. The conferees further direct 
that the Savannah River Operations Office be designated as the 
tritium production field office.

Payment of penalties assessed against Rocky Flats site (sec. 3134)

      The House bill contained a provision (sec. 3103) that 
would authorize the Secretary of Energy to pay for civil 
penalties assessed in accordance with a federal facility 
agreement and consent order against the Rocky Flats site in 
Colorado.
      The Senate amendment contained a similar provision (sec. 
3105).
      The Senate recedes.
      As indicated in the Senate report (S. Rept. 104-112), the 
conferees are concerned about the diversion of Department of 
Energy funds for payment of fines and penalties. The conferees 
agree that this is an issue that warrants continued monitoring.

Fissile materials disposition (sec. 3135)

      The budget request included $70.0 million for the fissile 
materials disposition program.
      The Senate amendment contained a provision (sec. 3132) 
that would authorize $70.0 million for the storage and 
disposition of fissile materials that are excess to U.S. 
national security needs. Of this amount, $10.0 million would be 
available for a plutonium resource assessment.
      The House bill contained a provision (sec. 3133(b)) that 
would authorize $70.0 million for plutonium storage and 
disposition, including the multipurpose advanced light water 
reactor. Of that amount, $5.0 million would be available for 
evaluating the conversion of plutonium to oxide fuel material 
for the multipurpose reactor. Sufficient funds would also be 
made available to fully assess the multipurpose reactor in the 
Department of Energy's (DOE's) programmatic environmental 
impact statement on fissile materials disposition.
      The Senate recedes with an amendment.
      The conferees authorize $70.0 million be made available 
for evaluation and implementation of interim- and long-term 
storage and disposition of plutonium, highly enriched uranium, 
and other fissile materials that are excess to the national 
security needs of the U.S. The conferees direct that the 
evaluation include full consideration of light water and gas 
turbine reactors. The conferees further direct that sufficient 
funds be made available for the complete consideration of 
multipurpose reactors in the DOE programmatic environmental 
impact statement on fissile materials disposition. The 
conferees endorse the views expressed in the House Report (H. 
Rept. 104-131) regarding the National Resource Center for 
Plutonium.

Tritium recycling (sec. 3136)

      The Senate amendment contained a provision (sec. 3133) 
that would require Department of Energy weapons program tritium 
recycling to be carried out at the Savannah River Site. The 
Senate provision would allow the Los Alamos National Laboratory 
to conduct the following activities related to tritium: (1) 
research on tritium properties; (2) inertial confinement fusion 
tritium research; (3) technical assistance for the Savannah 
River Site regarding the weapons surveillance program, as 
directed by the Savannah River Site Office. Except as noted 
above, the Savannah River Site Office and its on-site 
contractor would be responsible for all tritium-related 
national security activities of the U.S. Department of Energy.
      The House bill contained no similar provision.
      The House recedes.

Manufacturing infrastructure for refabrication and certification of 
        nuclear weapons stockpile (sec. 3137)

      The Senate amendment included a provision (sec. 3134) 
that would authorize $143.0 million to carry out a program to 
meet the manufacturing infrastructure requirements of the 
President's Nuclear Posture Review through near-term 
modernization of technology at the four production plants cited 
in this section.
      The House bill contained no similar provision.
      The House recedes with an amendment. The conferees 
require that this initiative provide for enhanced stockpile 
surveillance, advanced manufacturing, and core stockpile 
management activities at these plants. This requirement 
includes fundamental initiatives in advanced manufacturing, and 
additional emphasis on advanced computerized manufacturing and 
revalidation techniques at these plants. The conferees direct 
the Secretary of Energy to ensure that requirements for primary 
pit refabrication are addressed in the on-going Programmatic 
Environmental Impact Statement (PEIS) on Stockpile Stewardship 
and Management. Should it be determined, based on the PEIS, 
that there is a need for such a capacity, the conferees require 
the Secretary to undertake a conceptual design study of an 
appropriately sized weapon primary pit refabrication, 
manufacturing and reuse facility and to consider the Savannah 
River Site for that role. Up to $5.0 million would be available 
for this study from the stockpile management program resources.
      The conferees direct the Secretary to treat this 
initiative as a high weapons activity program priority with new 
budget authority. Further, the conferees authorize $118.2 
million above the DOE Stockpile Management budget request to 
pursue this initiative in fiscal year 1996 at the four 
production plants, without an impact on the current planned 
program activities at these plants. The conferees further 
direct that the remaining $24.8 million required for this 
initiative be made available from core stockpile management, 
reconfiguration and materials surveillance funds. The conferees 
recommend that the rate of expenditure for this initiative at 
each plant be proportionate to the plant's allocation of the 
entire initiative.

Hydronuclear experiments (sec. 3138)

      The Senate amendment contained a provision (sec. 3135) 
that would authorize $50.0 million in fiscal year 1996 to 
prepare the Nevada Test Site for hydronuclear experiments that 
would yield four pounds (TNT equivalent) or less. The 
experiments would be conducted to maintain confidence in the 
safety and reliability of the nuclear weapons stockpile. Zero 
yield experiments could be included in the fiscal year 1996 
experiments as part of the test site preparation.
      The House bill contained no similar provision.
      The House recedes with an amendment providing $30.0 
million for such purposes.

Limitation on authority to conduct hydronculear tests (sec. 3139)

      The Senate amendment contained a provision (sec. 3108) 
that would limit this Act by confirming that nothing in this 
Act authorizes hydronuclear tests and that nothing in this Act 
amends or repeals the Exon-Hatfield Amendment (section 507 of 
Public Law 102-377) which places limitations on U.S. nuclear 
testing.
      The House bill contained no similar provision.
      The House recedes with an amendment.

Fellowship program for development of skills critical to the Department 
        of Energy nuclear weapons complex (sec. 3140)

      The Senate amendment contained a provision (sec. 3136) 
that would provide $10.0 million from Stockpile Management 
funds to begin a science and engineering fellowship program for 
the Pantex Plant, the Kansas City Plant, the Savannah River 
Site and the Y-12 Plant. The program would provide educational 
and research assistance to attract scientists and engineers 
with the skills most relevant to plant employment opportunities 
and mission requirements.
      The House bill contained no similar provision.
      The House recedes.

Limitation on use of funds for certain research and development 
        purposes (sec. 3141)

      The Senate amendment contained a provision (sec. 3138) 
that would limit the obligation of fiscal year 1996 Atomic 
Energy Defense Activity funds for the Department of Energy 
laboratory directed research and development (LDRD) program and 
the Department of Energy technology transfer programs, unless 
such activities support the national security missions of the 
Department.
      The House bill contained no similar provision.
      The House recedes.
      The conferees believe the scientific and engineering 
challenges embodied in the emerging stockpile stewardship and 
stockpile management programs are more than sufficient to 
maintain the laboratories' preeminence in science and 
engineering. Therefore, the laboratories should expeditiously 
begin to focus the program resources on the pressing needs of 
the nuclear weapons program.

Processing and treatment of high level nuclear waste and spent nuclear 
        fuel rods (sec. 3142)

      The Senate amendment contained a provision (sec. 3139) 
that would recommend $2.5 million for the electrometallurgical 
processing activities at the Idaho National Engineering 
Laboratory. This amendment would also recommend $45.0 million 
to develop technologies for the processing of spent fuel rods 
at the Savannah River Site and at the Idaho National 
Engineering Laboratory.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
$45.0 million for the development of a program to respond 
effectively to the new management requirements for spent fuel. 
These new requirements are the result of a decision set forth 
in the Department of Energy's Record of Decision, dated May 30, 
1995, prepared in relation to the Department's spent nuclear 
fuel management program. That decision provided for the 
consolidation at the Savannah River Site and at the Idaho 
National Engineering Laboratory of spent nuclear fuel that has 
been transported from various sites in the United States, spent 
fuel from naval reactors, and spent fuel from foreign reactors. 
The conferees authorize $30.0 million for the Savannah River 
Site for the development of a program for the processing and 
interim storage of aluminum clad spent fuel rods and foreign 
spent fuel rods. The conferees authorize $15.0 million for the 
Idaho National Engineering Laboratory for a similar program for 
nonaluminum clad spent fuel rods, foreign spent fuel rods, and 
naval spent fuel. The conferees require the Secretary of Energy 
to submit to Congress a detailed five-year implementation plan 
that would provide cost estimates, completion dates, and 
technological requirements for completion of the program.
      The conferees also authorize, from technology development 
program funds within Environmental Restoration and Waste 
Management, $25.0 million for the development of 
electrometallurgical waste treatment technologies at the 
Argonne National Laboratory.

Protection of workers at nuclear weapons facilities (sec. 3143)

      The Senate amendment contained a provision (sec. 3142) 
that would authorize $10.0 million from the operations and 
maintenance resources of the Environmental Restoration and 
Waste Management Program to carry out activities related to 
worker protection at nuclear weapons facilities.
      The House bill contained no similar provision.
      The House recedes.

Department of Energy declassification productivity initiative (sec. 
        3144)

      The budget request did not identify funding for the 
Declassification Productivity Initiative that began in fiscal 
year 1995.
      The Senate amendment contained a provision (sec. 3140) 
that would authorize $3.0 million from other national security 
programs for the Declassification Productivity Initiative (DPI) 
at the Department of Energy.
      The House bill contained no similar provision.
      The House recedes.
      The conferees note that Executive Order 12958, signed by 
the President on April 9, 1995, mandates that millions of 
classified documents be declassified by the year 2000. While it 
remains paramount that the Department maintain the integrity of 
its national security information, the conferees agree that 
substantial savings can be realized by reducing the volumes of 
unduly classified documents, and by modifying unnecessary and 
overly-burdensome classification policies. The conferees 
authorize $3.0 million for the DPI and recommend that the 
Department request appropriate funding for the initiative in 
future budget submissions.

                       Subtitle D--Other Matters

Report on foreign tritium purchases (sec. 3151)

      The House bill contained a provision (sec. 3141) that 
would require the President to submit a report to Congress by 
February, 1996, on the feasibility, cost, and ramifications of 
purchasing tritium for the nuclear weapons program from foreign 
suppliers.
      The Senate amendment contained a similar provision (sec. 
3163) that would require the President to submit the same 
report to the congressional defense committees by May 30, 1997.
      The Senate recedes with an amendment that would require 
the report by May 1, 1996.

Study on nuclear test readiness postures (sec. 3152)

      The House bill contained a provision (sec. 3142) that 
would require the Secretary of Energy to submit a report to 
Congress by February 15, 1996. The report would address cost 
and other issues related to the Department of Energy's 
capability to conduct underground nuclear testing within 6 
months, 18 months, and 36 months from the date that the 
President determines that such testing is necessary to ensure 
the national security of the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Master plan for the certification, stewardship, and management of 
        warheads in the nuclear weapons stockpile (sec. 3153)

      The House bill contained a provision (sec. 3143) that 
would require the Secretary of Defense, in consultation with 
the Secretary of Energy, to submit a plan to Congress that 
would describe in detail the proposed means of demonstrating 
the capability to refabricate and certify old warheads and to 
design and build new warheads. The provision would require 
submission of the report not later than March 15, 1996.
      The Senate amendment contained a provision (sec. 3165) 
that would require the Secretary of Energy to produce, by March 
15, 1996, and every year thereafter, a plan for maintaining the 
enduring nuclear weapons stockpile. That plan would involve at 
least six specific elements, to include a plan for the 
manufacturing infrastructure, necessary to maintain the nuclear 
weapons stockpile stewardship and management programs.
      The House recedes with an amendment that would explicitly 
incorporate the requirements of the House provision into the 
manufacturing infrastructure requirements section of the Senate 
provision. Both sets of requirements are based on the 
Department of Energy infrastructure requirements section of the 
Nuclear Posture Review.

Prohibition on international inspections of Department of Energy 
        facilities unless protection of restricted data is certified 
        (sec. 3154)

      The House bill included a provision (sec. 3144) that 
would prohibit international inspections of Department of 
Energy facilities unless the Secretary of Energy certifies that 
sensitive and/or restricted data has been adequately 
safeguarded.
      The Senate amendment did not contain a similar provision.
      The Senate recedes with an amendment.
      The conferees agree to a provision that would prohibit an 
inspection of a nuclear weapons facility by the International 
Atomic Energy Agency (IAEA) until the Secretary of Energy 
certifies to Congress that no restricted data would be revealed 
during the inspection.
      The conferees direct the Secretary to ensure that the 
certification to Congress is made prior to the inspection. If 
the Secretary of Energy cannot provide certification in advance 
of an inspection because of a short-notice (24-hour) request, 
the Secretary shall provide certification no later than seven 
days after the inspection has been conducted. The certification 
shall also describe the steps taken by the Secretary to ensure 
the protection of the restricted data during the inspection.

Review of certain documents before declassification and release (sec. 
        3155)

      The conference agreement includes this provision to 
strongly urge the President to immediately review and revise 
Executive Order 12958, which provides for the automatic 
declassification and public release of documents containing 
National Security Information within five years, regardless of 
prior review. Included under this order are Department of 
Energy documents that potentially contain restricted data on 
nuclear weapons design, production and testing, and Department 
of Defense documents that potentially contain information on 
nuclear weapons operations and support. Automatic 
declassification thereby creates the risk of releasing nuclear 
weapons information to potential proliferators. This would 
constitute a grave risk to U.S. national security and to non-
proliferation efforts.
      The conferees believe that the automatic declassification 
of national security records that contain restricted data would 
constitute a violation of the legal protections for restricted 
data, mandated by the Atomic Energy Act of 1954, as amended. 
The conferees recognize that the Executive Order provides an 
exemption for the automatic declassification of restricted 
data. However, the conferees are concerned that some classified 
documents may contain restricted data information without 
reflecting that fact on the classification records. Therefore, 
there is no practical means to ensure the protection of 
restricted data and apply an automatic declassification system.

Accelerated schedule for environmental management activities (sec. 
        3156)

      The House bill contained a provision (sec. 3145) that 
would permit the Secretary of Energy to accelerate the schedule 
for environmental management activities and projects for any 
specific Department of Energy defense nuclear facility site, if 
such efforts would yield substantial long-term cost savings and 
speed up the release of land for development.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment. The 
amended provision would require the Secretary of Energy to 
submit a report to Congress by May 1, 1996 regarding site 
selection for the accelerated program.

Sense of Congress on certain environmental restoration requirements 
        (sec. 3157)

      The Senate amendment contained a provision (sec. 3107) 
that would express the sense of Congress that individuals in 
the executive branch should not be held personally liable for 
failure to comply with an environmental cleanup requirement 
when the failure to comply is due to congressional 
appropriations decisions.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees agree that no individual acting within the 
scope of employment with a Federal agency or department should 
be personally subject to civil or criminal sanctions for any 
failure to comply with an environmental cleanup requirement 
that is the result of inadequate funding.

Responsibility for defense programs emergency response program (sec. 
        3158)

      The Senate amendment contained a provision (sec. 3161) 
that would require the Assistant Secretary of Energy for 
Defense Programs to retain the responsibility for the Defense 
Programs Radiological/Nuclear Accident Response Program. That 
program includes the seven emergency response assets needed to 
carry out the mission: the Aerial Measuring System; the 
Atmospheric Release Advisory Capability; the Accident Response 
Group; the Federal Radiological Monitoring and Assessment 
Center; the Nuclear Emergency Search Team; the Radiological 
Assistance Program; and the Radiation Emergency Assistance 
Center/Training Site.
      The House bill contained no similar provision.
      The House recedes.

Requirements for Department of Energy weapons activities budgets for 
        fiscal years after fiscal year 1996 (sec. 3159)

      The Senate amendment contained a provision (sec. 3162) 
that would require the Department of Energy (DOE) to remedy 
past and present items of congressional criticism related to 
the clarity of the Department's budget submission. The Senate 
provision would require the Department to explicitly relate its 
budget submission to the requirements of the Nuclear Posture 
Review.
      The House bill contained no similar provision.
      The House recedes.

Report on hydronuclear testing (sec. 3160)

      The Senate amendment contained a provision (sec. 3164) 
that would require the Secretary of Energy to direct the Los 
Alamos and Lawrence Livermore National Laboratories to prepare 
a report that would assess the advantages and disadvantages of 
permitting alternative limits for nuclear test yields, from at 
least four pounds to 20 tons, as related to the safety and 
reliability of the nuclear weapons stockpile. In addition to 
the yields explicitly cited, the report would address other 
yields, as appropriate, but would remain focused on the 
advantages and disadvantages of sub-kiloton testing, as related 
to stockpile safety and reliability.
      The House bill contained no similar provision.
      The House recedes with an amendment that adjusts the 
nuclear test yields of interest.

Applicability of Atomic Energy Community Act of 1955 to Los Alamos, New 
        Mexico (sec. 3161)

      The Senate amendment contained a provision (sec. 3166) 
that would amend and specify certain requirements of the Atomic 
Energy Community Act of 1955 for the community of Los Alamos, 
New Mexico.
      The House bill contained no similar provision.
      The House recedes.

Sense of Congress regarding shipments of spent nuclear fuel (sec. 3162)

      The Senate amendment contained a provision (sec. 3167) 
that would express a sense of the Senate that the Secretary of 
Defense, the Secretary of Energy, and the Governor of the State 
of Idaho should continue good faith negotiations for the 
purpose of reaching an agreement on the issue of shipments of 
spent nuclear fuel from naval reactors.
      The House bill included no similar provision.
      The House recedes with an amendment that would express 
the sense of Congress that: (1) the Congress recognizes the 
need to implement the terms, conditions, rights, and 
obligations contained in the settlement agreement reached 
between the United States and the State of Idaho regarding 
shipment, examination, and storage of naval spent nuclear fuel 
at Idaho; and (2) that funds requested by the President to 
carry out the settlement agreement and consent order should be 
appropriated for that purpose.

                   legislative provisions not adopted

Education program for personnel critical to the nuclear weapons complex

      The Senate amendment contained a provision (sec. 3137) 
that would authorize $10.0 million from the Stockpile 
Stewardship Program to conduct an education program designed to 
establish a long-term supply of personnel with skills critical 
to the nuclear weapons complex. The program would: (1) 
encourage and assist students in the study of science, 
mathematics, and engineering; (2) enhance teaching skills in 
critical areas; and (3) increase scientific understanding of 
the general public.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize $10.0 million from the 
Stockpile Stewardship Program. The conferees note that because 
existing legislation authorizes such activities, up to $10.0 
million would be authorized for this purpose, without a 
separate authorization provision.

Applicability of Atomic Energy Community Act of 1955 to Los Alamos, New 
        Mexico (sec. 3161)

      The Senate amendment contained a provision (sec. 3166) 
that would amend and specify certain requirements of the Atomic 
Energy Community Act of 1955 for the community of Los Alamos, 
New Mexico.
      The House bill contained no similar provision.
      The House recedes.

Authority to reprogram funds for disposition of certain spent nuclear 
        fuel

      The Senate amendment contained a provision (sec. 3141) 
that would authorize the Secretary of Energy to reprogram up to 
$5.0 million in fiscal year 1996 funds available to the 
Department for the disposition of spent nuclear fuel in the 
Democratic People's Republic of Korea (DPRK), in order to meet 
International Atomic Energy Agency (IAEA) safeguard standards 
and fulfill the October 21, 1994 agreement between the United 
States and the DPRK.
      The House bill did not contain a similar provision.
      The Senate recedes.
      In order to meet International Atomic Energy Agency 
safeguard standards and fulfill the October 21, 1994 agreement 
between the United States and the DPRK, the conferees recommend 
$3.6 million for the disposition of spent nuclear fuel. In 
authorizing these funds, the conferees make no judgment 
regarding the merits of the October 1994 agreement.

          Title XXXII--Defense Nuclear Facilities Safety Board

                         legislative provisions

                     legislative provisions adopted

Authorization (sec. 3201)

      The House bill contained a provision (sec. 3201) that 
would authorize $17.0 million for the Defense Nuclear 
Facilities Safety Board.
      The Senate amendment contained an identical provision 
(sec. 3201).
      The conferees recommend $17.0 million for the Board.

                Title XXXIII--National Defense Stockpile

                         legislative provisions

                     legislative provisions adopted

        Subtitle A--Authorization of Disposals and Use of Funds

Disposal of chromite and manganese ores and chromium ferro and 
        manganese metal electrolytic (sec. 3303)

      The House bill contained a provision (sec. 3302) that 
would require the granting of right of first refusal to 
domestic ferroalloy upgraders, for certain disposals.
      The Senate amendment contained a similar provision (sec. 
3403).
      The House recedes with a technical amendment regarding 
the definition of a domestic ferroalloy upgrader.

Restrictions on disposal of manganese ferro (sec. 3304)

      The House bill contained a provision (sec. 3303) that 
would require that certain grade manganese ferro not be 
disposed of from the National Defense Stockpile until the 
disposal of lower grade inventory material had been completed. 
The provision would also require that certain grade manganese 
ferro only be sold for remelting in a submerged arc 
ferromanganese furnace.
      The Senate amendment contained a similar provision (sec. 
3404) that would require certain grade manganese ferro to be 
sold only for remelting by a domestic ferroalloy producer.
      The House recedes.

Titanium initiative to support battle tank upgrade program (sec. 3305)

      The House bill contained a provision (sec. 3304) that 
would direct the transfer of titanium sponge from the National 
Defense Stockpile to the Army for use in the weight reduction 
portion of the main battle tank upgrade program. The transfer 
would be without cost to the Army, except for transportation 
and similar costs.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                    Subtitle B--Programmatic Change

Transfer of excess defense-related materials to stockpile for disposal 
        (sec. 3311)

      The Senate amendment contained a provision (sec. 3405) 
that would direct the transfer of suitable, uncontaminated 
Department of Energy inventory items to the National Defense 
Stockpile for disposal.
      The House bill contains no similar provision.
      The House recedes.

                   LEGISLATIVE PROVISIONS NOT ADOPTED

Disposal of obsolete and excess materials contained in the National 
        Defense Stockpile
      The Senate amendment contained a provision (sec. 3402) 
that would authorize the disposal of materials from the 
National Defense Stockpile.
      The House bill contained no similar provision.
      The Senate recedes.
      The defense committees and the conferees have recommended 
that new disposal authority be granted in the reconciliation 
process, rather than authorization.

                 Title XXXIV--Naval Petroleum Reserves

                         legislative provisions

                     legislative provisions adopted

         Subtitle A--Administration of Naval Petroleum Reserves

Authorization of appropriations (sec. 3401)
      The House bill contained a provision (sec. 3401) that 
would authorize fiscal year 1996 appropriations for the 
operation of the Naval Petroleum Reserves.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Price requirement on sale of certain petroleum during fiscal year 1996 
        (sec. 3402)
      The House bill contained a provision (sec. 3402) that 
would require that the sale of any oil produced at the Naval 
Petroleum Reserves be transacted for a price that is not less 
than 90 percent of the sales price of comparable petroleum from 
the same area, as estimated by the Secretary of Energy.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Extension of operating contract for naval petroleum reserve numbered 1. 
        (sec. 3403)
      The conference agreement contains a provision which 
amends Section 3503 of the National Defense Authorization Act 
of Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3111) to 
extend the Department of Energy's authority to operate the 
Naval Petroleum Reserve Numbered 1.

              Subtitle B--Sale of Naval Petroleum Reserve

Future of Naval Petroleum and Oil Shale Reserves (secs. 3411-3416)
      The House bill contained a provision (sec. 3403) that 
would provide for the sale of the Naval Petroleum Reserve 
Numbered 1 (NPR-1), also known as Elk Hills located in Kern 
County, California. The House bill also contained a provision 
(sec. 3404) that would require the Secretary of Energy to 
conduct a study to determine what should be done with the other 
five remaining reserves in the Naval Petroleum and Oil Shale 
Reserves.
      The Senate amendment contained similar provisions (secs. 
3301 and 3302).
      The conference agreement includes several provisions 
related to the future of the Naval Petroleum and Oil Shale 
Reserves that would provide for the sale of NPR-1 by 
competitive bid within two years of enactment. The agreement 
would also require the Secretary of Energy to submit a report 
that would recommend a course of action that would maximize the 
value of the five remaining reserves to the federal government.
      The conferees believe that the sale of NPR-1 can be 
justified based on the fact that there is no longer a military 
need for these reserves. Since the Arab oil embargo, the 
likelihood of a sustained interruption in supply has fallen and 
the market has shown itself to be responsive in pricing and 
allocating oil during periods of uncertain supply.
      In addition, the conferees are concerned about the long-
term implications of government participation in what has 
become a commercial oil business. The conferees believe that 
producing and selling oil and natural gas should be performed 
within the private sector. That belief is shared by the 
administration which also proposed the sale of the reserve.
      The sale of NPR-1 will help save the federal government 
over a billion dollars in operating costs and several hundred 
million dollars in interest payments. These savings are in 
addition to the increased tax revenues and the $1.5 to $2.5 
billion in receipts that will result from the sale. Even after 
deducting the lost annual revenues resulting from the sale, 
these savings and receipts will result in a substantial net 
increase to the Treasury.
      The conference agreement contains a number of safeguards 
so that the sale of NPR-1 will ensure the government realizes 
the maximum amount of revenues possible. The provisions would 
require the Secretary of Energy to obtain credible appraisals 
of the value of the reserve before setting a minimum acceptable 
sales price. In addition, the valuation must include all 
existing infrastructure, the estimated quantity of petroleum 
and natural gas in the reserve, and the anticipated revenue 
stream that the Treasury would receive if the reserve was not 
sold. The Secretary could not accept bids lower than the 
minimum acceptable price and could not enter into contracts for 
sale until the end of a 31-day period following notification to 
Congress. The proceeds from the sale would be deposited in the 
Treasury.
      In addition, if the Secretary of Energy and the Director 
of the Office of Management and Budget jointly determine that 
the sale of NPR-1 is proceeding in a manner that is 
inconsistent with the best interests of the United States, the 
Secretary may suspend the sale. The Secretary must then wait 
for further legislation authorizing the continuation of the 
sale. The conferees believe the Secretary should suspend the 
sale only after all efforts have been made to ameliorate any 
difficulties in the sale of the reserve.
      In the event the Secretary is not able to comply with the 
deadlines included in these provisions, the Secretary and the 
Director of the OMB would be required to notify Congress and 
submit a plan of alternative action.
      The conference agreement provides for the transfer of a 
current environmental permit (50 CFR 13.25) in order to allow 
the purchaser to continue the operation of the field with all 
the environmental safeguards provided by the federal 
government. In addition, the conferees expect that this will 
ensure that the value of the field will not be diminished by 
the uncertain timing of obtaining a new permit.
      In response to a potential legal claim by the State of 
California, on behalf of the California State Teachers 
Retirement Fund, the provisions would set aside nine percent of 
the net proceeds in a contingent fund. These funds would be 
available, subject to appropriations, for the payment of any 
valid claims resulting from a settlement between the Secretary 
of Energy and the State of California or a judgement by a court 
of competent jurisdiction. The conferees expect that 
California's release of its claim would be contingent upon an 
appropriation of funds per any settlement agreement or court 
decision.

                  Title XXXV--Panama Canal Commission

                         legislative provisions

                     legislative provisions adopted

Panama Canal Commission (Title XXXV)
      The House call contained several provisions (secs. 3501-
3503) that would provide the authorization of expenditures for 
the Panama Canal Commission revolving fund.
      The Senate amendment contained similar provisions (secs. 
3501-3502).
      The Panama Canal Commission does not draw from U.S. 
taxpayer funds for operation of the Canal, but operates on a 
self-sustaining basis, utilizing tolls and other revenues to 
cover its operating, administrative, and capital improvements 
expenses. The Senate amendment would provide for slightly 
greater allowances for official representation expenses than 
the House bill. The Senate amendment would also limit the cost 
of vehicles purchased for use by the Commission. The House bill 
contained a requirement that the vehicles be built in the 
United States.
      The House recedes on these items. However, the conferees 
note that the Commission has in the past purchased vehicles 
built in the United States and would encourage that practice to 
continue.
      The House bill included additional provisions (secs. 
3521-3531), not in the Senate amendment, that would facilitate 
the transition and the operation of the Canal as an autonomous 
entity after it is transferred to Panama at the end of 1999. 
Section 3522 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484) required that the 
President review and report on possible changes that would ease 
the transition process. The legislative provisions contained in 
sections 3521-3531 of the House bill would implement, with only 
minor clarifying changes, the administration's recommendations 
contained in the report transmitted to the Congress on April 
12, 1994.
      The Senate recedes with an amendment that would delete 
section 3524 of the House bill entitled ``International 
Advisors''.
      The conferees agree that the Canal's governing board of 
supervisors can consult with and obtain expert advice from 
those in the international shipping and financial community 
without the necessity of a legislative provision.

                 DIVISION D--FEDERAL ACQUISITION REFORM

                         legislative provisions

                     legislative provisions adopted

Overview
      Acquisition reform provisions with government-wide 
application were included in title VIII of the House bill. 
Subsequently, the House passed H.R. 1670, a freestanding bill 
which addressed many of the same, as well as, other issues. The 
Senate amendment contained a number of acquisition policy 
provisions. The conferees considered all of these provisions 
before agreeing to include the following legislation in the 
conference agreement. The following is a section-by-section 
description of the provisions adopted by the conferees.

                         Title XLI--Competition

Efficient competition (sec. 4101)
      The conference agreement includes a provision that would 
amend section 2304 of title 10 and section 253 of title 41. 
United States Code. The provision would direct that the Federal 
Acquisition Regulation ensure that the requirement to obtain 
full and open competition is implemented in a manner that is 
consistent with the need to efficiently fulfill the 
government's requirements. This provision makes no change to 
the requirement for full and open competition or to the 
definition of full and open competition.
Efficient approval procedures (sec. 4102)
      The conference agreement includes a provision that would 
amend section 2304 of title 10 and section 253 of title 41, 
United States Code, by raising the dollar thresholds for 
contracts that require the approval of the use of other than 
competitive procedures by higher level agency officials.
Efficient competitive range determinations (sec. 4103)
      The conference agreement includes a provision that would 
allow a contracting officer, in procurements involving 
competitive negotiations, to limit the number of proposals in 
the competitive range to the greatest number that would permit 
an efficient competition among the most highly rated 
competitors. The conferees intend that the determination of the 
competitive range be made after the initial evaluation of the 
proposals, on the basis of the rating of those proposals. The 
rating shall be made on the basis of price, quality and other 
factors specified in the solicitation for the evaluation of the 
proposals.
Preaward debriefings (sec. 4104)
      The conference agreement includes a provision that would 
require that, prior to a contract award, a contracting officer 
provide a debriefing to any interested offerors on the reasons 
for that offeror's exclusion from the competitive range in a 
competitive negotiation. The provision would specify 
information that must be provided to an unsuccessful offeror 
upon written request for a debriefing, as well as limitations 
on the types of information that may be provided. The provision 
also would require the Federal Acquisition Regulation to 
include a provision encouraging the use of alternative dispute 
resolution techniques to provide informal, expeditious, and 
inexpensive procedures for an offeror to consider using before 
filing a protest.
Design-build selection procedures (sec. 4105)
      The conference agreement includes a provision that would 
authorize the use of two-phase selection procedures for 
entering into contracts for the design and construction of a 
public building, facility, or work. The provision details the 
considerations that would be used by a contracting officer to 
determine whether to use two-phase selection procedures and 
describes the process to be followed under the two-phase 
selection procedure. The provision would also limit the number 
of proposals to be considered in the second phase to no more 
than five, unless the agency determines that a greater number 
is in the government's interest. This provision is not intended 
to modify the Brooks Architect-Engineers Act.

                      Title XLII--Commercial Items

Commercial item exception to requirement for cost or pricing data (sec. 
        4201)
      The conference agreement includes a provision that would 
amend section 2306a of title 10 and section 254b of title 41, 
United States Code, to exempt suppliers of commercial items 
under contracts and subcontracts with federal agencies from the 
requirement to submit certified cost and pricing data. The 
provision would include the requirement that, in the cases of 
such contracts or subcontracts, contracting officers shall 
require the submission of data other than certified cost or 
pricing data to the extent necessary to determine price 
reasonableness. In recognition of the authority of the General 
Accounting Office to audit contractor records, the conferees 
have removed the specific audit authorities in the Federal 
Acquisition Streamlining Act of 1994 (Public Law 103-355) that 
relate to information supplied by commercial suppliers in lieu 
of certified cost and pricing data.

Application of simplified procedures to certain commercial items (sec. 
        4202)

      The conference agreement includes a provision that would 
allow the use of simplified procedures for the acquisition of 
commercial items with a purchase value of $5.0 million or less 
when a contracting officer reasonably expects that offers in 
response to a solicitation would only include commercial items. 
The provision would specify that implementing regulations 
provide that all responsible offerors in procurements conducted 
under this authority be permitted to submit a bid, proposal, or 
quotation that shall be considered by the agency. The conferees 
intend that the flexible notice provision be implemented in a 
manner that would provide offerors with a reasonable 
opportunity to respond. The provision would also prohibit sole 
source procurement unless the need is justified in writing in 
accordance with section 2304 of title 10 or section 253 of 
title 41, United States Code. The authority for the use of 
simplified procedures under this section would expire at the 
end of the three-year period, beginning on the date of the 
issuance of the final implementing regulations.

Inapplicability of certain procurement laws to commercially available 
        off-the-shelf items (sec. 4203)

      The conference agreement includes a provision that would 
require that the Federal Acquisition Regulation include a list 
of provisions that are inapplicable to contracts for the 
procurement of commercially available off-the-shelf items. The 
list would be required to include each provision of law that, 
in the opinion of the Administrator of the Office of Federal 
Procurement Policy, imposes on persons who have been awarded 
contracts by the federal government for the procurement of 
commercially available off-the-shelf products government-unique 
policies, procedures, requirements, or restrictions for the 
procurement of property or services unless the Administrator 
determines that to do so would not be in the best interest of 
the United States. The list would include provisions of law 
uniquely applicable to government contractors, but would not 
include generally applicable provisions of law. The provision 
would specifically preclude several categories of statutes from 
being included on the list, such as any provision of law that 
provides for civil or criminal penalties. The provision would 
define commercially available off-the-shelf items as commercial 
items that are sold in substantial quantities to the general 
public and that are offered to the federal government in the 
same form in which they have been sold to the general public. 
The provision would specifically exclude from that definition 
bulk cargo such as agricultural products and petroleum 
products.
Amendment to commercial items definition (sec. 4204)
      The conference agreement includes a provision that would 
make a clarifying amendment to the definition of ``commercial 
services'' in section 403(12)(F) of title 41, United States 
Code. For the purpose of this section, market prices are 
current prices that are established in the course of ordinary 
trade between buyers and sellers free to bargain and that can 
be substantiated from sources independent of the offeror.
Inapplicability of cost accounting standards to contracts and 
        subcontracts for commercial items (sec. 4205)
      The conference agreement includes a provision that would 
exempt contracts and subcontracts for commercial items from the 
application of the cost accounting standards promulgated under 
section 422 of title 41, United States Code. The Cost 
Accounting Standards Board, in consultation with the Director 
of the Defense Contract Audit Agency, shall establish guidance, 
consistent with commercial accounting systems and practices, to 
ensure that contractors appropriately assign costs to contracts 
(other than firm, fixed-price contracts) that are covered by 
the exemption for contracts or subcontracts where the price 
negotiated is based on established catalog or market prices of 
commercial items sold in substantial quantities to the general 
public. The conferees direct that the Board issue standards to 
implement this provision.

               Title XLIII--Additional Reform Provisions

          Subtitle A--Additional Acquisition Reform Provisions

Elimination of certain certification requirements (sec. 4301)
      The conference agreement includes a provision that would 
eliminate a number of statutory certification requirements for 
contractors and subcontractors with the federal government. The 
conferees note that the underlying requirement to comply with 
the specified statutes is not affected by the elimination of 
the contractor or subcontractor certification requirements. The 
conferees have included a general requirement that the 
Administrator of the Office of Federal Procurement Policy 
(OFPP) amend the Federal Acquisition Regulation to remove 
regulation-based certification requirements after a suitable 
period for public notice and comment. The provision would 
mandate the heads of executive agencies to follow a similar 
process. The provision also includes a prohibition on the 
imposition of future contractor and subcontractor certification 
requirements, unless such certification is imposed by statute 
or is justified in writing and approved by the Federal 
Acquisition Regulatory Council and the Administrator of OFPP.
Authorities conditioned on Federal Acquisition Computer Network 
        (FACNET) capability (sec. 4302)
      The conference agreement includes a provision that would 
amend section 5061 of the Federal Acquisition Streamlining Act 
of 1994 (Public Law 103-484) to allow a test of alternative 
procurement procedures. The amendment would remove a 
requirement that the test of alternative procurement procedures 
be contingent on the implementation of full federal acquisition 
computer network (FACNET) electronic commerce procedures. The 
Provision would also amend subsection (e) of section 427 of 
title 41, United States Code, to limit the linkage between full 
FACNET implementation and federal agency use of simplified 
acquisition procedures to a requirement that an agency must 
deploy a full FACNET capability by December 31, 1999 or revert 
back to a threshold of $50,000 on the value of procurements 
below which simplified procedures are authorized.

International competitiveness (sec. 4303)

      The conference agreement includes a provision that would 
amend section 21(e)(2) of the Arms Export Control Act to allow 
the President to waive recoupment charges for non-recurring 
research and development costs on foreign military sales of 
major defense equipment under certain conditions. The provision 
would authorize the presidential waiver if it is determined 
that the levy of charges would likely result in the loss of a 
sale or the elimination of charges would result in savings to 
the government in the form of lower per unit costs for a 
particular item of equipment. Under this provision, the 
President would also be authorized to waive any portion of a 
recoupment charge attributable to a correction in an earlier 
estimate of a production quantity base used to calculate the 
pro rata recoupment charges for a particular item. The 
provision includes language that would render the use of the 
waiver subject to the President's identification and 
Congressional appropriation of an offset for any revenue lost 
as a result of the waiver authority, from fiscal year 1997 
through fiscal year 2005.

Procurement integrity (sec. 4304)

      The conference agreement includes a provision that would 
amend section 423 of title 41, United States Code, to revise 
the restrictions on obtaining or disclosing contractor bid or 
proposal information or source selection information. The 
provision would prohibit, except as provided by law, present or 
former federal employees from knowingly obtaining or disclosing 
such information before the award of a contract to which 
information relates. This provision would authorize criminal 
penalties for a violation of such prohibition when such 
information is exchanged for something of value or for the 
purpose of allowing anyone to obtain a competitive advantage in 
the award of a federal contract. The provision would authorize 
civil and administrative penalties for such violations as well.
      The provision would also replace the current agency-
specific recusal and post-employment restrictions applicable to 
agency employees involved in certain specified procurement 
actions with uniform standards applicable to all federal 
agencies. The post-employment restrictions would apply to 
designated officials involved in procurements over $10.0 
million for a one-year period.
      The recusal requirements apply to employees who are 
participating personally and substantially in a procurement. 
These requirements cover employees who participate personally 
and substantially in one or more of the following activities: 
the drafting of a specification developed for that procurement; 
the review and approval of a specification developed for that 
procurement; the preparation or issuance of a procurement 
solicitation in that procurement; the evaluation of bids or 
proposals for that procurement; the selection of sources for 
that procurement; the conduct of negotiations in the 
procurement; the review and approval of the award, 
modification, or extension of a contract in that procurement; 
such other specific procurement actions as may be specified in 
implementing regulations.
      The provision also would provide civil and administrative 
penalties for contractors as well as for agency employees who 
violate the recusal requirements or the post-employment 
restrictions.

Further acquisition streamlining provisions (sec. 4305)

      The conference agreement includes a provision that would 
consolidate a number of provisions in the Office of Federal 
Procurement Policy Act concerning findings, policies, and 
purposes. The provision would also repeal the reporting 
requirements in section 8 of the Act as well as make clarifying 
changes to section 11 of the Act regarding the permanent 
authorization of appropriations for the Office of Federal 
Procurement Policy.
Value engineering for federal agencies (sec. 4306)
      The conference agreement includes a provision that would 
amend the Office of Federal Procurement Policy Act by adding a 
new section that would require federal agencies to establish 
and maintain cost-effective value engineering procedures and 
processes.
Acquisition workforce (sec. 4307)
      The conference agreement includes a provision that would 
establish a series of policies and procedures for the 
management of the acquisition workforce in executive agencies 
other than the Department of Defense. The provision would 
require the head of each executive agency, after consultation 
with the Administrator of the Office of Federal Procurement 
Policy, to establish procedures and policies for the accession, 
education, training, and career development and performance 
incentives for the acquisition workforce of the agency. The 
provision would place primary management authority for the 
acquisition workforce under the control of the senior 
procurement executive of each agency. The provision would 
establish statutory standards for the executive agencies in 
areas such as career development and worker qualification 
requirements. The provision would also require each agency to 
establish separate funding levels for acquisition workforce 
education and training, and would authorize tuition 
reimbursement programs for personnel serving in acquisition 
positions.
Demonstration project relating to certain personnel management policies 
        and procedures (sec. 4308)
      The conference agreement includes a provision that would 
encourage the Secretary of Defense to embark on a demonstration 
program, or programs, to test the feasibility and desirability 
of proposals to improve personnel management policies or 
procedures for the Department of Defense acquisition workforce. 
The provision would modify authority under section 4703 of 
title 5, United States Code, with respect to a demonstration 
project carried out under this section for the three-year 
period, beginning on the date of enactment of this Act.
Cooperative purchasing (sec. 4309)
      The conference agreement includes a provision that would 
suspend the authority of the Administrator of General Services 
under section 481(b)(2) of title 40, United States Code, to 
allow state and local governments to use the federal supply 
schedules. The provision would suspend the authority until the 
later of the period ending 18 months after the date of 
enactment of this Act or the period ending 30 days after the 
date after the Administrator has reviewed a General Accounting 
Office report that assesses the effects of state and local 
governments use of the federal supply schedules and has 
submitted the report and comments on the report to Congress. 
The conferees direct that the General Accounting Office include 
an assessment of the impact on costs to federal agencies from 
the use of federal supply schedules by state and local 
governments.
Procurement notice technical amendment (sec. 4310)
      The conference agreement includes a provision that would 
make a clarifying amendment to section 18(c)(1)(E) to the 
Office of Federal Procurement Policy Act.
Micro-purchases without competitive quotations (sec. 4311)
      The conference agreement includes a provision that would 
amend section 428 of title 41, United States Code, to provide 
greater flexibility to executive agencies in determining who 
may make purchases below $2,500 without being required to 
receive competitive quotations.

                    Subtitle B--Technical Amendments

Amendments related to Federal Acquisition Streamlining Act of 1994 
        (sec. 4321)
      The conference agreement includes a provision that would 
make a series of technical and clarifying changes to the 
Federal Acquisition Streamlining Act of 1994 (Public Law 103-
355).
Miscellaneous amendments to federal acquisition laws (sec. 4322)
      The conference agreement includes a provision that would 
make a series of clarifying and technical changes to 
acquisition statutes throughout the United States Code.

             Title XLIV--Effective Dates and Implementation

Effective date and applicability (sec. 4401)
      The conference agreement includes a provision that would 
provide that amendments made by this division would take effect 
on the date of enactment except as otherwise provided. The 
provision would provide that amendments made by this division 
apply to solicitations issued, unsolicited proposals received, 
any contract entered into pursuant to such a solicitation or 
proposal, and ongoing contracting actions, on or after the date 
30 days after final implementing regulations are published but 
no later than January 1, 1997.
Implementing regulations (sec. 4402)
      The conference agreement includes a provision that would 
establish a regulatory implementation schedule for the 
amendments within this division.

          DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

                         legislative provisions

                     legislative provisions adopted

Overview

      The Senate amendment contained provisions with 
government-wide acquisition and management issues related to 
information technology. The House bill also contained 
provisions relating to bid protest jurisdictions. The conferees 
considered all of these provisions before agreeing to include 
Division E in the conference agreement.
      The conferees agree that:
            (1) federal information systems are critical to the 
        lives of every American;
            (2) the efficiency and effectiveness of the federal 
        government is dependent upon the effective use of 
        information;
            (3) the federal government annually spends billions 
        of dollars operating obsolete information systems;
            (4) the use of obsolete information systems 
        severely limits the quality of the services that the 
        federal government provides, the efficiency of federal 
        government operations, and the capabilities of the 
        federal government to account for how taxpayer dollars 
        are spent;
            (5) the failure to modernize federal government 
        information systems and the operations they support, 
        despite efforts to do so, has resulted in the waste of 
        billions of dollars that cannot be recovered;
            (6) despite improvements achieved through 
        implementation of the Chief Financial Officers Act of 
        1990, most federal agencies cannot track the 
        expenditures of Federal dollars and, thus, expose the 
        taxpayers to billions of dollars in waste, fraud, 
        abuse, and mismanagement;
            (7) poor planning and program management and an 
        overburdened acquisition process have resulted in the 
        American taxpayers not getting their money's worth from 
        the expenditure of $200,000,000,000 on information 
        systems during the decade preceding the enactment of 
        this Act;
            (8) the federal government's investment control 
        processes focus too late in the system lifecycle, lack 
        sound capital planning, and pay inadequate attention to 
        business process improvement, performance measurement, 
        project milestones, or benchmarks against comparable 
        organizations;
            (9) many federal agencies lack adequate personnel 
        with the basic skills necessary to effectively and 
        efficiently use information technology and other 
        information resources in support of agency programs and 
        missions;
            (10) federal regulations governing information 
        technology acquisitions are outdated, focus on 
        paperwork and process rather than results, and prevent 
        the federal government from taking timely advantage of 
        the rapid advances taking place in the competitive and 
        fast changing global information technology industry;
            (11) buying, leasing, or developing information 
        systems should be a top priority for federal agency 
        management because of the high potential for the 
        systems to substantially improve Federal Government 
        operations, including the delivery of services to the 
        public; and,
            (12) structural changes in the federal government, 
        including elimination of the Brooks Act (section 111 of 
        the Federal Property and Administrative Services Act of 
        1949, as amended), are necessary in order to improve 
        federal information management and to facilitate 
        federal government acquisition of the state-of-the-art 
        information technology that is critical for improving 
        the efficiency and effectiveness of federal government 
        operations.
      The conferees agree that action is necessary on the part 
of Congress in order to:
            (1) create incentives for the federal government to 
        strategically use information technology in order to 
        achieve efficient and effective operations of the 
        federal government, and to provide cost effective and 
        efficient delivery of federal government services to 
        the taxpayers;
            (2) provide for the cost effective and timely 
        acquisition, management, and use of effective 
        information technology solutions;
            (3) transform the process-oriented procurement 
        system of the federal government, as it relates to the 
        acquisition of information technology, into a results-
        oriented procurement system;
            (4) increase the responsibility and authority of 
        officials of the Office of Management and Budget and 
        other federal government agencies, and the 
        accountability of such officials to Congress and the 
        public, in the use of information technology and other 
        information resources in support of agency missions;
            (5) ensure that federal government agencies are 
        responsible and accountable for achieving service 
        delivery levels and project management performance 
        comparable to the best in the private sector;
            (6) promote the development and operation of 
        multiple-agency and government-wide, inter-operable, 
        shared information resources to support the performance 
        of federal government missions;
            (7) reduce fraud, waste, abuse, and errors 
        resulting from a lack of, or poor implementation of, 
        federal government information systems;
            (8) increase the capability of the federal 
        government to restructure and improve processes before 
        applying information technology;
            (9) increase the emphasis placed by federal agency 
        managers on completing effective capital planning and 
        process improvement before applying information 
        technology to the executing of plans and the 
        performance of agency missions;
            (10) coordinate, integrate, and, to the extent 
        practicable, establish uniform federal information 
        resources management policies and practices in order to 
        improve the productivity, efficiency, and effectiveness 
        of federal government programs and the delivery of 
        services to the public;
            (11) strengthen the partnership between the federal 
        government and state, local, and tribal governments for 
        achieving federal government missions, goals, and 
        objectives;
            (12) provide for the development of a well-trained 
        core of professional federal government information 
        resources managers; and,
            (13) improve the ability of agencies to share 
        expertise and best practices and coordinate the 
        development of common application systems and 
        infrastructure.
      The following is a section-by-section description of the 
provisions adopted by the conferees. Section 5001 sets forth a 
short title ``The Information Technology Management Reform Act 
of 1996'' and Section 5002 sets forth definitions.

   Title LI--Responsibility for Acquisition of Information Technology

                     Subtitle A--General Authority

Repeal of central authority of the Administrator of General Services 
        (sec. 5101)

      The conference agreement includes a provision that would 
repeal section 111 of the Federal Property and Administrative 
Services Act of 1949, as amended.

      Subtitle B--Director of the Office of Management and Budget

Responsibility of Director (sec. 5111)
      The conference agreement includes a provision that would 
require the Director of the Office of Management and Budget to 
comply with this title. The conferees anticipate that these 
provisions will be reviewed upon reauthorization of the 
Paperwork Reduction Act prior to September 30, 2001.
      The conferees agree that in undertaking activities and 
issuing guidance in accordance with this subtitle, the Director 
shall promote the integration of information technology 
management with the broader information resource management 
processes in the agencies.
      The conferees encourage the establishment of interagency 
groups to support the Director by examining areas of 
information technology, to include: telecommunications, 
software engineering, common administrative and programmatic 
applications, computer security and information policy, all of 
which would benefit from a government-wide or multi-agency 
perspective; the promotion of cooperation among agencies in 
information technology matters; the review of major or high 
risk information technology acquisitions; and the promotion of 
the efficient use of information technology that supports 
agency missions. The interagency groups should: identify common 
goals and requirements; develop a coordinated approach to 
meeting certain agency requirements, such as budget estimates 
and procurement programs; identify opportunities to share 
information that would improve the agency performance and 
reduce costs of agency programs; make recommendations regarding 
protocols and other standards for information technology, 
including security standards; and make recommendations 
concerning interoperability among agency information systems. 
The conferees also encourage the establishment of temporary 
special advisory groups, composed of experts from industry, 
academia, and the Federal Government, to review government-wide 
information technology programs, major or high risk information 
technology acquisitions, and information technology policy.
Capital planning and investment control (sec. 5112)
      The conference agreement includes a provision that would 
describe the Director's responsibilities under 44 USC 3504(h) 
that relate to promoting and sustaining responsibility and 
accountability for improvement of the acquisition, use, and 
disposal of information technology by executive agencies.
      The conferees agree that the Director, in developing a 
process related to major agency capital investments, should: 
ensure that the process identifies opportunities for 
interagency cooperation; ensure the success of high risk and 
high return investments; develop requirements for agency 
submission of investment information needed to execute the 
process; ensure that agency information resources management 
plans are integrated into the agency's program plans, financial 
management plans, and budgets for the acquisition and use of 
information technology designed to improve agency performance 
and the accomplishment of agency missions; and identify three 
categories of information systems investments--(1) high risk--
those projects that, by virtue of their size, complexity, use 
of innovative technology, or other factors, have an especially 
high risk of failure; (2) high return--those projects that by 
virtue of their total potential benefits, in proportion to 
their costs, have particularly unique value to the public; and 
(3) crosscutting--those projects of individual agencies, with 
shared benefit to or impact on other federal agencies and state 
or local governments, that require enforcement of operational 
standards or elimination of redundancies. Finally, the 
conferees also agree that the Director, to encourage the use of 
best business and administrative practices, should identify and 
collect information regarding best practices, to include 
information on the development and implementation of best 
practices by the executive agencies. The Director should 
provide the executive agencies with information on best 
practices, and advice and assistance regarding the use of best 
practices.
Performance-based and results-based management (sec. 5113)
      The conference agreement includes a provision that would 
require the Director to encourage performance and results-based 
management for agency information technology programs. The 
Director is required to review agency management practices 
based on the performance and results of its information 
technology programs and investments. The Director is required 
to issue clear and concise directions to ensure that agencies 
have effective and efficient capital planning processes that 
are used to select, control, and evaluate the results of major 
information systems investments and to ensure that agency 
information security is adequate.
      The conferees agree that the Director's direction to 
agencies regarding performance and results-based management of 
information technology resources shall contain the following: 
(1) that each executive agency and its major subcomponents 
institute effective and efficient capital planning processes 
for selecting, controlling, and evaluating the results of all 
of its major information systems investments; (2) that the 
agency maintain a current and adequate information resources 
management plan, and to the maximum extent practicable, 
specifically identify the method for acquisition of information 
technology expected to improve agency operations, and otherwise 
benefit the agency; (3) that the agency provide for adequate 
integration of the agency's information resources management 
plans, strategic plans prepared pursuant to 5 U.S.C. 306, 
performance plans prepared pursuant to 31 U.S.C. 1115, 
financial management plans prepared pursuant to 31 U.S.C. 
902(a)(5), and the agency budgets for the acquisition and use 
of information technology and other information resources. In 
addition, the conferees agree that OMB shall provide the needed 
oversight, through the budget process and other means, to 
ensure that executive agencies assume responsibility, and 
effectively implement suitable performance and results-based 
management practices.

                     Subtitle C--Executive Agencies

Responsibilities (sec. 5121)
      The conference agreement includes a provision that would 
require the head of each executive agency to comply with this 
subtitle. The conferees anticipate that these provisions will 
be reviewed upon reauthorization of the Paperwork Reduction Act 
prior to September 30, 2001.
      The conferees encourage the establishment and support of 
independent technical review committees, composed of diverse 
agency personnel (including users) and outside experts selected 
by the agency head, to advise an agency head about information 
systems programs.
Capital planning and investment control (sec. 5122)
      The conference agreement includes a provision that would 
require agencies to develop a process for furthering their 
responsibilities under 44 U.S.C. 3506(h). The head of the 
agency is required to design and develop a process for 
maximizing the value and assessing and managing the risk of the 
agency's information technology acquisitions.
Performance and results-based management (sec. 5123)
      The conference agreement includes a provision that would 
require agencies to establish goals for and report on the 
progress of improving efficiency and effectiveness of agency 
operations through use of information technology, as required 
by 44 U.S.C. 3506(h). The head of an executive agency must 
ensure that performance measures are established to support 
evaluating the results and benefits of information technology 
investments.
      The conferees agree that, in fulfilling the 
responsibilities under this section, agency heads should ensure 
that: (1) before investing in information technology to support 
a function, the agency determines whether that function should 
be performed in the private sector or by an agency of the 
federal government; (2) the agency adequately provides for the 
integration of the agency's information resources management 
plans, strategic plans prepared pursuant to 5 U.S.C. 306, 
performance plans prepared pursuant to 31 U.S.C. 1115, 
financial management plans prepared pursuant to 31 U.S.C. 
902(a)(5), and adequately prepares budgets for the acquisition 
and use of information technology; (3) the agency maintains a 
current and adequate information resources management plan, and 
to the maximum extent practicable, specifically identifies how 
acquired information technology would improve agency operations 
and otherwise benefit the agency; and (4) the agency invests in 
efficient and effective interagency and government-wide 
information technology to improve the accomplishment of common 
agency missions or functions.
Acquisitions of information technology (sec. 5124)
      The conference agreement includes a provision that would 
authorize the head of an executive agency to acquire 
information technology and, upon approval of the Director of 
OMB, enter into multi-agency information technology 
investments. The conferees intend that the requirements and 
limitations of the Economy Act, and other provisions of law, 
apply to these multiagency acquisitions. This section also 
authorizes the General Services Administration (GSA) to 
continue the management of the FTS-2000 program and coordinate 
the follow-on effort to FTS-2000.
Agency chief information officer (sec. 5125)
      The conference agreement includes a provision that would 
amend the Paperwork Reduction Act of 1995 by replacing the 
``senior information resources management official position'' 
established within each executive agency with an agency Chief 
Information Officer (CIO). The agency CIO is responsible for 
providing information and advice regarding information 
technology and information resources management to the head of 
the agency, and for ensuring that the management and 
acquisition of agency information technology is implemented 
consistent with the provisions of this law.
      The conferees anticipate that agencies may establish CIOs 
for major subcomponents or bureaus, and expect agency CIOs will 
possess knowledge of, and practical experience in, information 
and information technology management practices of business or 
government entities. The conferees also intend that deputy 
chief information officers be appointed by agency heads that 
have additional experience in business process analysis, 
software and information systems development, design and 
management of information technology architectures, data and 
telecommunications management at government or business 
entities. The conferees intend that CIOs, in agencies other 
than those listed in 31 U.S.C. 901(b), perform essentially the 
same duties as CIOs in agencies listed in 31 U.S.C. 901(b).
      The conferees expect that an agency's CIO will meet 
periodically with other appropriate agency officials to advise 
and coordinate the information technology and other information 
resources management activities of the various agencies.

Accountability (sec. 5126)

      The conference agreement includes a provision that would 
require the head of each agency, in consultation with agency 
Chief Information Officers and Chief Financial Officers, to 
ensure the integration of financial and information systems. 
The conferees intend that the information resources management 
plan, required under 44 U.S.C. 3506(b)(2), support the 
performance of agency missions through the application of 
information technology and other information resources, and 
include the following: (1) a statement of goals to improve the 
extent to which information resources contribute to program 
productivity, efficiency, and effectiveness; (2) the 
development of methods to measure progress toward achieving the 
goals; (3) the establishment of clear roles, responsibilities, 
and accountability to achieve the goals; (4) a description of 
an agency's major existing and planned information technology 
components (such as information systems and telecommunications 
networks); (5) the relationship among the information 
technology components, and the information architecture; and 
(6) a summary of the project's status and any changes in name, 
direction or scope, quantifiable results achieved, and current 
maintenance expenditures for each ongoing or completed major 
information systems investment from the previous year. The 
conferees also intend that agency heads will periodically 
evaluate and improve the accuracy, security, completeness, and 
reliability of information maintained by or for the agency.

Significant deviations (sec. 5127)

      The conference agreement includes a provision that would 
require agencies to identify in their information resources 
management plans any major information technology acquisition 
program, or phase or increment of such program, that has 
significantly deviated from the established cost, performance, 
or schedule baseline.
Interagency support (sec. 5128)
      The conference agreement includes a provision that would 
authorize the utilization of funds for interagency activities 
in support of the Information Technology Reform Act.

                  Subtitle D--Other Responsibilities.

Responsibilities regarding efficiency, security, and privacy of federal 
        computer systems (sec. 5131)
      The conference agreement includes a provision that would 
set forth the authority for the Secretary of Commerce, in 
consultation with the National Institute of Standards and 
Technology, to promulgate standards to improve the operation, 
security, and privacy of Federal information technology 
systems.
Sense of Congress (sec. 5132)
      The conference agreement includes a provision stating 
that agencies, over the next five years, should achieve a five 
percent per year decrease in costs incurred for operation and 
maintenance of information technology, and a five percent 
increase in operational efficiency through improvements in 
information resources management.

                 Subtitle E--National Security Systems

      The conference agreement includes a provision that would 
exclude national security systems from provisions of this Act, 
unless otherwise provided in this Act.

     Title LII--Process for Acquisitions of Information Technology

Procurement procedures (sec. 5201)
      The conference agreement includes a provision that would 
direct the Federal Acquisition Regulatory Council to ensure, to 
the maximum extent practicable, that the information technology 
process is simplified, clear, and understandable. The process 
should specifically address the management of risk, incremental 
acquisitions, and the need to incorporate commercial 
information technology in a timely manner.
      The conferees agree that, in performing oversight of 
information technology acquisitions, the Director of the Office 
of Management and Budget, agency heads, and agency inspectors 
general should emphasize program results and established 
performance measurements, rather than reviews of the 
acquisition process.
Incremental acquisition of information technology (sec. 5202)
      The conference agreement includes a provision that would 
provide for procedures in the Federal Acquisition Regulations 
for the incremental acquisition of major information technology 
systems by the Department of Defense and the civilian executive 
agencies.

     Title LIII--Information Technology Acquisition Pilot Programs

                 Subtitle A--Conduct of Pilot Programs

      The conference agreement includes provisions that would 
authorize the Administrator of Office of Federal Procurement 
Policy, in consultation with the Administrator of Office of 
Information and Regulatory Affairs, to: conduct pilot programs 
to test alternative acquisition approaches for information 
technology; conduct no more than two pilots, not to exceed $750 
million for a period not to exceed five years; require agency 
heads to develop evaluation and test plans; prepare and submit 
test plans to Congress prior to implementation; report on 
results within 180 days after completion; and make 
recommendations for legislation.

                  Subtitle B--Specific Pilot Programs

      The conference agreement includes provisions that would 
provide for two specific pilot programs, the share-in-savings 
pilot program and the solutions-based contracting pilot 
program.

     Title LIV--Additional Information Resources Management Matters

On-line multiple award schedule contracting (sec. 5401)

      The conference agreement includes a provision that would 
require the Administrator of General Services to provide for 
on-line access to multiple award schedules for information 
technology. The system would provide basic information on 
prices, features, and similar matters, allow for information 
updates, enable comparison of product information, enable on-
line ordering and invoicing, permit on-line payment, and 
archive order data. The provision would also authorize a pilot 
program to test streamlined procedures for the automated 
system. The conference agreement directs the Administrator of 
General Services to incorporate its information technology 
multiple award schedules into Federal Acquisition Computer 
Network (FACNET) by January 1, 1998, and would make the pilot 
program discretionary. The conferees agree that the procedures 
established by the Administrator for use of FACNET be 
consistent with the Federal Property and Administrative 
Services Act requirements regarding the multiple award schedule 
(41 U.S.C. 259(B)(3)). If the Administrator determines it is 
not practicable to provide such access through FACNET, the 
Administrator shall provide such access through another 
automated system that has the capability to perform the 
functions listed in subsection 259(b)(1) and meets the 
requirement of subsection 259(b)(2).

Disposal of excess computer equipment (sec. 5402)

      The conference agreement includes a provision that would 
require agencies to inventory all agency computer equipment and 
to identify excess or surplus property. The conferees direct 
that the Administrator of General Services, in exercising 
current authority under title II of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481 et seq.), 
donate federal surplus personal property to public 
organizations. The conferees direct the Administrator to 
prescribe regulations that establish a priority for the 
donation of surplus computer equipment in the following 
sequence: (1) elementary and secondary schools, and schools 
funded by the Bureau of Indian Affairs; (2) public libraries; 
(3) public colleges and universities; and (4) other entities 
eligible for donation of federal surplus personal property 
under title II of that Act.

Access of certain information in information systems to the directory 
        established under section 4101 of title 44, United States Code 
        (sec. 5403)

      The conference agreement includes a provision that would 
ensure that, for agency information systems that disseminate 
information to the public, an index of information is included 
in the Government Printing Office (GPO) directory established 
under 44 U.S.C. 4101.
      In 1993, Congress directed the GPO to create an online 
directory, of federal public information in electronic form 
(Public Law 103-40). Today, that system is accessible to the 
general public directly and through the Federal Depository 
Libraries. Yet, in the two years since enactment of the GPO 
access bill, technology has moved forward dramatically in its 
ability to support location and search of the physically-
distributed, locally-maintained databases. Congress recognized 
this shift in the Paperwork Reduction Act of 1995 (Public Law 
104-13). That Act requires Federal agencies to ensure access to 
agency public information by ``encouraging a diversity of 
public and private sources''. It also directs the Office of 
Management and Budget to establish a distributed, electronic, 
agency-based Government Information Locator Service (GILS) to 
identify the major information dissemination products of each 
agency. As the Senate report noted (S. Rept. 104-112), GILS: 
``* * * will provide multiple avenues for public access to 
government information by pointing to specific agency 
information holdings. To make this possible, agencies' systems 
must be compatible. Thus, agency GILS information should be 
available to the public through the Government Printing Office 
Locator System (established pursuant to Public Law 103-40) in 
addition to any other required methods, agencies may choose to 
efficiently and effectively provide public and agency access to 
GILS.''
      Section 5403 further clarifies the intent of Congress to 
ensure the widest possible access to Federal public information 
through a diversity of compatible sources.

   Title LV--Procurement Protest Authority of the Comptroller General

      The conference agreement includes a provision that would 
require the Comptroller General to issue a decision relating to 
a bid protest within 100 days.

             Title LVI--Conforming and Clerical Amendments

      The conference agreement includes a series of clarifying 
and technical changes to acquisition statutes throughout the 
United States Code.

      Title LVII--Effective Date, Savings Provisions, and Rule of 
                              Construction

Effective date (sec. 5701)

      The conference agreement includes a provision that would 
provide for this division and the amendments made by this 
division to take effect 180 days after the date of the 
enactment of this Act.

Savings provisions (sec. 5702)

      The conference agreement includes a provision that would 
allow selected information technology actions and acquisition 
proceedings, including claims or applications, that have been 
initiated by, or are pending before, Administrator of the 
General Services or the General Services Administration Board 
of Contract Appeals to be continued under original terms, until 
terminated, revoked, or superseded in accordance with law, by 
the Director of OMB, by a court, or by operation of law. The 
Director of OMB is authorized to establish regulations for 
transferring such actions and proceedings.
                                   Floyd Spence,
                                   Bob Stump,
                                   Duncan Hunter,
                                   Herbert H. Bateman,
                                   Curt Weldon,
                                   G.V. Montgomery,
                                   John M. Spratt, Jr.,
                                 Managers on the Part of the House.

                                   Strom Thurmond,
                                   John Warner,
                                   Bill Cohen,
                                   Trent Lott,
                                   Sam Nunn,
                                Managers on the Part of the Senate.

                                

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