[House Report 105-265]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-265
_______________________________________________________________________


 
MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR 
           ENDING SEPTEMBER 30, 1998, AND FOR OTHER PURPOSES

                                _______
                                

               September 23, 1997.--Ordered to be printed

_______________________________________________________________________


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

                           CONFERENCE REPORT

                        [To accompany H.R. 2266]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2266) ``making appropriations for the Department of Defense for 
the fiscal year ending September 30, 1998, and for other 
purposes,'' having met, after full and free conference, have 
agreed to recommend and do recommend to their respective Houses 
as follows:
      That the House recede from its disagreement to the 
amendment of the Senate, and agree to the same with an 
amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:

That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the fiscal year 
ending September 30, 1998, for military functions administered 
by the Department of Defense, and for other purposes, namely:

                                TITLE I

                           MILITARY PERSONNEL

                        Military Personnel, Army

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Army on active duty 
(except members of reserve components provided for elsewhere), 
cadets, and aviation cadets; and for payments pursuant to 
section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
note), to section 229(b) of the Social Security Act (42 U.S.C. 
429(b)), and to the Department of Defense Military Retirement 
Fund; $20,452,057,000.

                        Military Personnel, Navy

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Navy on active duty 
(except members of the Reserve provided for elsewhere), 
midshipmen, and aviation cadets; and for payments pursuant to 
section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
note), to section 229(b) of the Social Security Act (42 U.S.C. 
429(b)), and to the Department of Defense Military Retirement 
Fund; $16,493,518,000.

                    Military Personnel, Marine Corps

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Marine Corps on 
active duty (except members of the Reserve provided for 
elsewhere); and for payments pursuant to section 156 of Public 
Law 97-377, as amended (42 U.S.C. 402 note), to section 229(b) 
of the Social Security Act (42 U.S.C. 429(b)), and to the 
Department of Defense Military Retirement Fund; $6,137,899,000.

                     Military Personnel, Air Force

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Air Force on active 
duty (except members of reserve components provided for 
elsewhere), cadets, and aviation cadets; and for payments 
pursuant to section 156 of Public Law 97-377, as amended (42 
U.S.C. 402 note), to section229(b) of the Social Security Act 
(42 U.S.C. 429(b)), and to the Department of Defense Military 
Retirement Fund; $17,102,120,000.

                        Reserve Personnel, Army

      For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Army Reserve 
on active duty under sections 10211, 10302, and 3038 of title 
10, United States Code, or while serving on active duty under 
section 12301(d) of title 10, United States Code, in connection 
with performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing reserve training, or 
while performing drills or equivalent duty or other duty, and 
for members of the Reserve Officers' Training Corps, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $2,032,046,000.

                        Reserve Personnel, Navy

      For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Navy Reserve 
on active duty under section 10211 of title 10, United States 
Code, or while serving on active duty under section 12301(d) of 
title 10, United States Code, in connection with performing 
duty specified in section 12310(a) of title 10, United States 
Code, or while undergoing reserve training, or while performing 
drills or equivalent duty, and for members of the Reserve 
Officers' Training Corps, and expenses authorized by section 
16131 of title 10, United States Code; and for payments to the 
Department of Defense Military Retirement Fund; $1,376,601,000.

                    Reserve Personnel, Marine Corps

      For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Marine Corps 
Reserve on active duty under section 10211 of title 10, United 
States Code, or while serving on active duty under section 
12301(d) of title 10, United States Code, in connection with 
performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing reserve training, or 
while performing drills or equivalent duty, and for members of 
the Marine Corps platoon leaders class, and expenses authorized 
by section 16131 of title 10, United States Code; and for 
payments to the Department of Defense Military Retirement Fund; 
$391,770,000.

                      Reserve Personnel, Air Force

      For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Air Force 
Reserve on active duty under sections 10211, 10305, and 8038 of 
title 10, United States Code, or while serving on active duty 
under section 12301(d) of title 10, United States Code, in 
connection with performing duty specified in section 12310(a) 
of title 10, United States Code, or while undergoing reserve 
training, or while performing drills or equivalent duty or 
other duty, and for members of the Air Reserve Officers' 
Training Corps, and expenses authorized by section 16131 of 
title 10, United States Code; and for payments to the 
Department of Defense Military Retirement Fund; $815,915,000.

                     National Guard Personnel, Army

      For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Army National 
Guard while on duty under section 10211, 10302, or 12402 of 
title 10 or section 708 of title 32, United States Code, or 
while serving on duty under section 12301(d) of title 10 or 
section 502(f) of title 32, United States Code, in connection 
with performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $3,333,867,000.

                  National Guard Personnel, Air Force

      For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Air National 
Guard on duty under section 10211, 10305, or 12402 of title 10 
or section 708 of title 32, United States Code, or while 
serving on duty under section 12301(d) of title 10 or section 
502(f) of title 32, United States Code, in connection with 
performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $1,334,712,000.

                                TITLE II

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army


                     (including transfer of funds)


      For expenses, not otherwise provided for, necessary for 
the operation and maintenance of the Army, as authorized by 
law; and not to exceed $11,437,000, can be used for emergencies 
and extraordinary expenses, to be expended on the approval or 
authority of the Secretary of the Army, and payments may be 
made on his certificate of necessity for confidential military 
purposes; $16,754,306,000 and, in addition, $50,000,000 shall 
be derived by transfer from the National Defense Stockpile 
Transaction Fund: Provided, That of the funds appropriated in 
this paragraph, not less than $300,000,000 shall be made 
available only for conventional ammunition care and 
maintenance.

                    Operation and Maintenance, Navy


                     (including transfer of funds)


      For expenses, not otherwise provided for, necessary for 
the operation and maintenance of the Navy and the Marine Corps, 
as authorized by law; and not to exceed $5,500,000, can be used 
for emergencies and extraordinary expenses, to be expended on 
the approval or authority of the Secretary of the Navy, and 
payments may be made on his certificate of necessity for 
confidential military purposes; $21,617,766,000 and, in 
addition, $50,000,000 shall be derived by transfer from the 
National Defense Stockpile Transaction Fund.

                Operation and Maintenance, Marine Corps

      For expenses, not otherwise provided for, necessary for 
the operation and maintenance of the Marine Corps, as 
authorized by law; $2,372,635,000.

                  Operation and Maintenance, Air Force


                     (including transfer of funds)


      For expenses, not otherwise provided for, necessary for 
the operation and maintenance of the Air Force, as authorized 
by law; and not to exceed $8,362,000 can be used for 
emergencies and extraordinary expenses, to be expended on the 
approval or authority of the Secretary of the Air Force, and 
payments may be made on his certificate of necessity for 
confidential military purposes; $18,492,883,000 and, in 
addition, $50,000,000 shall be derived by transfer from the 
National Defense Stockpile Transaction Fund.

                Operation and Maintenance, Defense-Wide

      For expenses, not otherwise provided for, necessary for 
the operation and maintenance of activities and agencies of the 
Department of Defense (other than the military departments), as 
authorized by law; $10,369,740,000, of which not to exceed 
$25,000,000 may be available for the CINC initiative fund 
account; and of which not to exceed $28,850,000 can be used for 
emergencies and extraordinary expenses, to be expended on the 
approval or authority of the Secretary of Defense, and payments 
may be made on his certificate of necessity for confidential 
military purposes.

                Operation and Maintenance, Army Reserve

      For expenses, not otherwise provided for, necessary for 
the operation and maintenance, including training, 
organization, and administration, of the Army Reserve; repair 
of facilities and equipment; hire of passenger motor vehicles; 
travel and transportation; care of the dead; recruiting; 
procurement of services, supplies, and equipment; and 
communications; $1,207,891,000.

                Operation and Maintenance, Navy Reserve

      For expenses, not otherwise provided for, necessary for 
the operation and maintenance, including training, 
organization, and administration, of the Navy Reserve; repair 
of facilities and equipment; hire of passenger motor vehicles; 
travel and transportation; care of the dead; recruiting; 
procurement of services, supplies, and equipment; and 
communications; $921,711,000.

            Operation and Maintenance, Marine Corps Reserve

      For expenses, not otherwise provided for, necessary for 
the operation and maintenance, including training, 
organization, and administration, of the Marine Corps Reserve; 
repair of facilities and equipment; hire of passenger motor 
vehicles; travel and transportation; care of the dead; 
recruiting; procurement of services, supplies, and equipment; 
and communications; $116,366,000.

              Operation and Maintenance, Air Force Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Air Force Reserve; repair of 
facilities and equipment; hire of passenger motor vehicles; 
travel and transportation; care of the dead; recruiting; 
procurement of services, supplies, and equipment; and 
communications; $1,632,030,000.

             Operation and Maintenance, Army National Guard

    For expenses of training, organizing, and administering the 
Army National Guard, including medical and hospital treatment 
and related expenses in non-Federal hospitals; maintenance, 
operation, and repairs to structures and facilities; hire of 
passenger motor vehicles; personnel services in the National 
Guard Bureau; travel expenses (other than mileage), as 
authorized by law for Army personnel on active duty, for Army 
National Guard division, regimental, and battalion commanders 
while inspecting units in compliance with National Guard Bureau 
regulations when specifically authorized by the Chief, National 
Guard Bureau; supplying and equipping the Army National Guard 
as authorized by law; and expenses of repair, modification, 
maintenance, and issue of supplies and equipment (including 
aircraft); $2,419,632,000: Provided, That not later than March 
15, 1998, the Director of the Army National Guard shall provide 
a report to the congressional defense committees identifying 
the allocation, by installation and activity, of all base 
operations funds appropriated under this heading.

             Operation and Maintenance, Air National Guard

    For operation and maintenance of the Air National Guard, 
including medical and hospital treatment and related expenses 
in non-Federal hospitals; maintenance, operation, repair, and 
other necessary expenses of facilities for the training and 
administration of the Air National Guard, including repair of 
facilities, maintenance, operation, and modification of 
aircraft; transportation of things, hire of passenger motor 
vehicles; supplies, materials, and equipment, as authorized by 
law for the Air National Guard; and expenses incident to the 
maintenance and use of supplies, materials, and equipment, 
including such as may be furnished from stocks under the 
control of agencies of the Department of Defense; travel 
expenses (other than mileage) on the same basis as authorized 
by law for Air National Guard personnel on active Federal duty, 
for Air National Guard commanders while inspecting units in 
compliance with National Guard Bureau regulations when 
specifically authorized by the Chief, National Guard Bureau; 
$3,013,282,000.

             Overseas Contingency Operations Transfer Fund


                     (including transfer of funds)


    For expenses directly relating to Overseas Contingency 
Operations by United States military forces; $1,884,000,000: 
Provided, That the Secretary of Defense may transfer these 
funds only to operation and maintenance accounts within this 
title, and working capital funds: Provided further, That the 
funds transferred shall be merged with and shall be available 
for the same purposes and for the same time period, as the 
appropriation to which transferred: Provided further, That the 
transfer authority provided in this paragraph is in addition to 
any other transfer authority contained elsewhere in this Act.

          United States Court of Appeals for the Armed Forces

    For salaries and expenses necessary for the United States 
Court of Appeals for the Armed Forces; $6,952,000, of which not 
to exceed $2,500 can be used for official representation 
purposes.

                    Environmental Restoration, Army


                     (including transfer of funds)


    For the Department of the Army, $375,337,000, to remain 
available until transferred: Provided, That the Secretary of 
the Army shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris of the 
Department of the Army, or for similar purposes, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of the Army, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or part of the funds transferred from this appropriation 
are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation: Provided 
further, That not more than twenty-five per centum of funds 
provided under this heading may be obligated for environmental 
remediation by the Corps of Engineers under total environmental 
remediation contracts.

                    Environmental Restoration, Navy


                     (including transfer of funds)


    For the Department of the Navy, $275,500,000, to remain 
available until transferred: Provided, That the Secretary of 
the Navy shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris of the 
Department of the Navy, or for similar purposes, transfer the 
funds made available by this appropriation to other 
appropriations made availableto the Department of the Navy, to 
be merged with and to be available for the same purposes and for the 
same time period as the appropriations to which transferred: Provided 
further, That upon a determination that all or part of the funds 
transferred from this appropriation are not necessary for the purposes 
provided herein, such amounts may be transferred back to this 
appropriation.

                  Environmental Restoration, Air Force


                     (including transfer of funds)


    For the Department of the Air Force, $376,900,000, to 
remain available until transferred: Provided, That the 
Secretary of the Air Force shall, upon determining that such 
funds are required for environmental restoration, reduction and 
recycling of hazardous waste, removal of unsafe buildings and 
debris of the Department of the Air Force, or for similar 
purposes, transfer the funds made available by this 
appropriation to other appropriations made available to the 
Department of the Air Force, to be merged with and to be 
available for the same purposes and for the same time period as 
the appropriations to which transferred: Provided further, That 
upon a determination that all or part of the funds transferred 
from this appropriation are not necessary for the purposes 
provided herein, such amounts may be transferred back to this 
appropriation.

                Environmental Restoration, Defense-Wide


                     (including transfer of funds)


    For the Department of Defense, $26,900,000, to remain 
available until transferred: Provided, That the Secretary of 
Defense shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris of the 
Department of Defense, or for similar purposes, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of Defense, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or part of the funds transferred from this appropriation 
are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation.

         Environmental Restoration, Formerly Used Defense Sites


                     (including transfer of funds)


    For the Department of the Army, $242,300,000, to remain 
available until transferred: Provided, That the Secretary of 
the Army shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris at 
sites formerly used by the Department of Defense, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of the Army, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or part of the funds transferred from this appropriation 
are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation.

             Overseas Humanitarian, Disaster, and Civic Aid

    For expenses relating to the Overseas Humanitarian, 
Disaster, and Civic Aid programs of the Department of Defense 
(consisting of the programs provided under sections 401, 402, 
404, 2547, and 2551 of title 10, United States Code); 
$47,130,000, to remain available until September 30, 1999.

                  Former Soviet Union Threat Reduction

    For assistance to the republics of the former Soviet Union, 
including assistance provided by contract or by grants, for 
facilitating the elimination and the safe and secure 
transportation and storage of nuclear, chemical and other 
weapons; for establishing programs to prevent the proliferation 
of weapons, weapons components, and weapon-related technology 
and expertise; for programs relating to the training and 
support of defense and military personnel for demilitarization 
and protection of weapons, weapons components and weapons 
technology and expertise; $382,200,000, to remain available 
until September 30, 2000: Provided, That of the amounts 
provided under this heading, $35,000,000 shall be available 
only to support the dismantling and disposal of nuclear 
submarines and submarine reactor components in the Russian Far 
East: Provided further, That of the amounts provided under this 
heading, $5,000,000 shall be available only for the Arctic 
Military Environmental Cooperation Program.

                 Quality of Life Enhancements, Defense

        For expenses, not otherwise provided for, resulting 
from unfunded shortfalls in the repair and maintenance of real 
property of the Department of Defense (including military 
housing and barracks); $360,000,000, for the maintenance of 
real property of the Department of Defense (including minor 
construction and major maintenance and repair), which shall 
remain available for obligation until September 30, 1999, as 
follows:
            Army, $100,000,000;
            Navy, $70,000,000;
            Marine Corps, $45,000,000; and
            Air Force, $145,000,000.

                               TITLE III

                              PROCUREMENT

                       Aircraft Procurement, Army

    For construction, procurement, production, modification, 
and modernization of aircraft, equipment, including ordnance, 
ground handling equipment, spare parts, and accessories 
therefor; specialized equipment and training devices; expansion 
of public and private plants, including the land necessary 
therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes; $1,346,317,000, to remain 
available for obligation until September 30, 2000.

                       Missile Procurement, Army

    For construction, procurement, production, modification, 
and modernization of missiles, equipment, including ordnance, 
ground handling equipment, spare parts, and accessories 
therefor; specialized equipment and training devices; expansion 
of public and private plants, including the land necessary 
therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes; $762,409,000, to remain 
available for obligation until September 30, 2000.

        Procurement of Weapons and Tracked Combat Vehicles, Army

    For construction, procurement, production, and modification 
of weapons and tracked combat vehicles, equipment, including 
ordnance, spare parts, and accessories therefor; specialized 
equipment and training devices; expansion of public and private 
plants, including the land necessary therefor, for the 
foregoing purposes, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $1,298,707,000, to remain available for 
obligation until September 30, 2000.

                    Procurement of Ammunition, Army

    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854 of 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $1,037,202,000, to remain available for 
obligation until September 30, 2000.

                        Other Procurement, Army

    For construction, procurement, production, and modification 
of vehicles, including tactical, support, and non-tracked 
combat vehicles; communications and electronic equipment; other 
support equipment; spare parts, ordnance, and accessories 
therefor; specialized equipment and training devices; expansion 
of public and private plants, including the land necessary 
therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes; $2,679,130,000, to remain 
available for obligation until September 30, 2000.

                       Aircraft Procurement, Navy

    For construction, procurement, production, modification, 
and modernization of aircraft, equipment, including ordnance, 
spare parts, and accessories therefor; specialized equipment; 
expansion of public and private plants, including the land 
necessary therefor, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; $6,535,444,000, to remain available for 
obligation until September 30, 2000.

                       Weapons Procurement, Navy

    For construction, procurement, production, modification, 
and modernization of missiles, torpedoes, other weapons, and 
related support equipment including spare parts, and 
accessories therefor; expansion of public and private plants, 
including the land necessary therefor, and suchlands and 
interests therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private plants; 
reserve plant and Government and contractor-owned equipment layaway; 
$1,102,193,000, to remain available for obligation until September 30, 
2000.

            Procurement of Ammunition, Navy and Marine Corps

    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854 of 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $397,547,000, to remain available for 
obligation until September 30, 2000.

                   Shipbuilding and Conversion, Navy

    For expenses necessary for the construction, acquisition, 
or conversion of vessels as authorized by law, including armor 
and armament thereof, plant equipment, appliances, and machine 
tools and installation thereof in public and private plants; 
reserve plant and Government and contractor-owned equipment 
layaway; procurement of critical, long leadtime components and 
designs for vessels to be constructed or converted in the 
future; and expansion of public and private plants, including 
land necessary therefor, and such lands and interests therein, 
may be acquired, and construction prosecuted thereon prior to 
approval of title, as follows:
      For continuation of the SSN-21 attack submarine program, 
$153,444,000;
            NSSN, $2,314,903,000;
            NSSN (AP), $284,859,000;
            CVN-77 (AP), $50,000,000;
            CVN Refuelings, $1,615,003,000;
            CVN Refuelings (AP), $46,855,000;
            DDG-51 destroyer program, $3,411,200,000;
            DDG-51 destroyer program (AP), $157,806,000;
            LPD-17 amphibious transport dock ship (AP), 
        $100,000,000;
            Oceanographic ship program (AP), $16,000,000;
            LCAC landing craft air cushion program, 
        $20,000,000; and
            For craft, outfitting, post delivery, conversions, 
        and first destination transportation, $137,521,000;

In all: $8,235,591,000, to remain available for obligation 
until September 30, 2002: Provided, That additional obligations 
may be incurred after September 30, 2002, for engineering 
services, tests, evaluations, and other such budgeted work that 
must be performed in the final stage of ship construction: 
Provided further, That none of the funds provided under this 
heading for the construction or conversion of any naval vessel 
to be constructed in shipyards in the United States shall be 
expended in foreign facilities for the construction of major 
components of such vessel: Provided further, That none of the 
funds provided under this heading shall be used for the 
construction of any naval vessel in foreign shipyards.

                        Other Procurement, Navy

    For procurement, production, and modernization of support 
equipment and materials not otherwise provided for, Navy 
ordnance (except ordnance for new aircraft, new ships, and 
ships authorized for conversion); the purchase of not to exceed 
194 passenger motor vehicles for replacement only; and the 
purchase of one vehicle required for physical security of 
personnel, notwithstanding price limitations applicable to 
passenger vehicles but not to exceed $232,340 per vehicle; 
expansion of public and private plants, including the land 
necessary therefor, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; $3,144,205,000, to remain available for 
obligation until September 30, 2000.

                       Procurement, Marine Corps

    For expenses necessary for the procurement, manufacture, 
and modification of missiles, armament, military equipment, 
spare parts, and accessories therefor; plant equipment, 
appliances, and machine tools, and installation thereof in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; vehicles for the Marine 
Corps, including the purchase of not to exceed 40 passenger 
motor vehicles for replacement only; and expansion of public 
and private plants, including land necessary therefor, and such 
lands and interests therein, may be acquired, and construction 
prosecutedthereon prior to approval of title; $482,398,000, to 
remain available for obligation until September 30, 2000.

                    Aircraft Procurement, Air Force

    For construction, procurement, and modification of aircraft 
and equipment, including armor and armament, specialized ground 
handling equipment, and training devices, spare parts, and 
accessories therefor; specialized equipment; expansion of 
public and private plants, Government-owned equipment and 
installation thereof in such plants, erection of structures, 
and acquisition of land, for the foregoing purposes, and such 
lands and interests therein, may be acquired, and construction 
prosecuted thereon prior to approval of title; reserve plant 
and Government and contractor-owned equipment layaway; and 
other expenses necessary for the foregoing purposes including 
rents and transportation of things; $6,480,983,000, to remain 
available for obligation until September 30, 2000: Provided, 
That of the funds made available under this heading, 
$331,000,000 shall be available for long lead activities 
related to the procurement of additional B-2 bombers: Provided 
further, That if the President determines that no additional B-
2 bombers should be procured during this fiscal year, and he 
certifies to the Congress his decision, the funding described 
in the previous proviso shall be made available to modify and 
repair the existing fleet of B-2 bombers.

                     Missile Procurement, Air Force

    For construction, procurement, and modification of 
missiles, spacecraft, rockets, and related equipment, including 
spare parts and accessories therefor, ground handling 
equipment, and training devices; expansion of public and 
private plants, Government-owned equipment and installation 
thereof in such plants, erection of structures, and acquisition 
of land, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes including rents 
and transportation of things; $2,394,202,000, to remain 
available for obligation until September 30, 2000.

                  Procurement of Ammunition, Air Force

    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854, 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $398,534,000, to remain available for 
obligation until September 30, 2000.

                      Other Procurement, Air Force

    For procurement and modification of equipment (including 
ground guidance and electronic control equipment, and ground 
electronic and communication equipment), and supplies, 
materials, and spare parts therefor, not otherwise provided 
for; the purchase of not to exceed 196 passenger motor vehicles 
for replacement only; the purchase of one vehicle required for 
physical security of personnel, notwithstanding price 
limitations applicable to passenger vehicles but not to exceed 
$232,340 per vehicle; and expansion of public and private 
plants, Government-owned equipment and installation thereof in 
such plants, erection of structures, and acquisition of land, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon, 
prior to approval of title; reserve plant and Government and 
contractor-owned equipment layaway; $6,592,909,000, to remain 
available for obligation until September 30, 2000.

                       Procurement, Defense-Wide

    For expenses of activities and agencies of the Department 
of Defense (other than the military departments) necessary for 
procurement, production, and modification of equipment, 
supplies, materials, and spare parts therefor, not otherwise 
provided for; the purchase of not to exceed 381 passenger motor 
vehicles for replacement only; expansion of public and private 
plants, equipment, and installation thereof in such plants, 
erection of structures, and acquisition of land for the 
foregoing purposes, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; reserve plant and Government and contractor-
owned equipment layaway; $2,106,444,000, to remain available 
for obligation until September 30, 2000.

                  National Guard and Reserve Equipment

    For procurement of aircraft, missiles, tracked combat 
vehicles, ammunition, other weapons, and other procurement for 
the reserve components of the Armed Forces; $653,000,000, to 
remain available for obligation until September 30, 2000: 
Provided, That the Chiefs of the Reserve and National Guard 
components shall, not later than 30 days after the enactment of 
this Act, individually submit to the congressional defense 
committees the modernization priority assessment for their 
respective Reserve or National Guard component.

                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment; $5,156,507,000, to remain available for 
obligation until September 30, 1999.

            Research, Development, Test and Evaluation, Navy

    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment; $8,115,686,000, to remain available for 
obligation until September 30, 1999: Provided, That funds 
appropriated in this paragraph which are available for the V-22 
may be used to meet unique requirements of the Special 
Operations Forces.

         Research, Development, Test and Evaluation, Air Force

    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment; $14,507,804,000, to remain available for 
obligation until September 30, 1999: Provided, That of the 
funds made available in this paragraph, $4,000,000 shall be 
only for development of coal-derived jet fuel technologies.

        Research, Development, Test and Evaluation, Defense-Wide

    For expenses of activities and agencies of the Department 
of Defense (other than the military departments), necessary for 
basic and applied scientific research, development, test and 
evaluation; advanced research projects as may be designated and 
determined by the Secretary of Defense, pursuant to law; 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment; $9,821,760,000, to remain available for 
obligation until September 30, 1999: Provided, That not less 
than $409,898,000 of the funds appropriated in this paragraph 
shall be made available only for the Sea-Based Wide Area 
Defense (Navy Upper-Tier) program: Provided further, That funds 
appropriated for the Dual-Use Applications Program under 
section 5803 of the Treasury, Postal Service, and General 
Government Appropriations Act, 1997 (Public Law 104-208), shall 
remain available for obligation until September 30, 1998.

               Developmental Test and Evaluation, Defense

    For expenses, not otherwise provided for, of independent 
activities of the Director, Test and Evaluation in the 
direction and supervision of developmental test and evaluation, 
including performance and joint developmental testing and 
evaluation; and administrative expenses in connection 
therewith; $258,183,000, to remain available for obligation 
until September 30, 1999.

                Operational Test and Evaluation, Defense

    For expenses, not otherwise provided for, necessary for the 
independent activities of the Director, Operational Test and 
Evaluation in the direction and supervision of operational test 
and evaluation, including initial operational test and 
evaluation which is conducted prior to, and in support of, 
production decisions; joint operational testing and evaluation; 
and administrative expenses in connection therewith; 
$31,384,000, to remain available for obligation until September 
30, 1999.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

    For the Defense Working Capital Funds; $971,952,000.

                     National Defense Sealift Fund

    For National Defense Sealift Fund programs, projects, and 
activities, and for expenses of the National Defense Reserve 
Fleet, as established by section 11 of the Merchant Ship Sales 
Act of 1946 (50 U.S.C. App. 1744); $1,074,948,000, to remain 
available until expended: Provided, That none of the funds 
provided in this paragraph shall be used to award a new 
contract that provides for the acquisition of any of the 
following major components unless such components are 
manufactured in the United States: auxiliary equipment, 
including pumps, for all shipboard services; propulsion system 
components (that is; engines, reduction gears, and propellers); 
shipboard cranes; and spreaders for shipboard cranes: Provided 
further, That the exercise of an option in a contract awarded 
through the obligation of previously appropriated funds shall 
not be considered to be the award of a new contract: Provided 
further, That the Secretary of the military department 
responsible for such procurement may waive these restrictions 
on a case-by-case basis by certifying in writing to the 
Committees on Appropriations of the House of Representatives 
and the Senate, that adequate domestic supplies are not 
available to meet Department of Defense requirements on a 
timely basis and that such an acquisition must be made in order 
to acquire capability for national security purposes.

                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

    For expenses, not otherwise provided for, for medical and 
health care programs of the Department of Defense, as 
authorized by law; $10,369,075,000, of which $10,095,007,000 
shall be for Operation and maintenance, of which not to exceed 
two per centum shall remain available until September 30, 1999, 
and of which $274,068,000, to remain available for obligation 
until September 30, 2000, shall be for Procurement.

           Chemical Agents and Munitions Destruction, Defense

    For expenses, not otherwise provided for, necessary for the 
destruction of the United States stockpile of lethal chemical 
agents and munitions in accordance with the provisions of 
section 1412 of the Department of Defense Authorization Act, 
1986 (50 U.S.C. 1521), and for the destruction of other 
chemical warfare materials that are not in the chemical weapon 
stockpile, $600,700,000, of which $462,200,000 shall be for 
Operation and maintenance, $72,200,000 shall be for Procurement 
to remain available until September 30, 2000, and $66,300,000 
shall be for Research, development, test and evaluation to 
remain available until September 30, 1999: Provided, That of 
the funds available under this heading, $1,000,000 shall be 
available until expended each year only for a Johnston Atoll 
off-island leave program: Provided further, That the 
Secretaries concerned shall, pursuant to uniform regulations, 
prescribe travel and transportation allowances for travel by 
participants in the off-island leave program.

         Drug Interdiction and Counter-Drug Activities, Defense


                     (including transfer of funds)


    For drug interdiction and counter-drug activities of the 
Department of Defense, for transfer to appropriations available 
to the Department of Defense for military personnel of the 
reserve components serving under the provisions of title 10 and 
title 32, United States Code; for Operation and maintenance; 
for Procurement; and for Research, development, test and 
evaluation; $712,882,000: Provided, That the funds appropriated 
under this head shall be available for obligation for the same 
time period and for the same purpose as the appropriation to 
which transferred: Provided further, That the transfer 
authority provided in this paragraph is in addition to any 
transfer authority contained elsewhere in this Act.

                    Office of the Inspector General

    For expenses and activities of the Office of the Inspector 
General in carrying out the provisions of the Inspector General 
Act of 1978, as amended; $138,380,000, of which $136,580,000 
shall be for Operation and maintenance, of which not to exceed 
$500,000 is available for emergencies and extraordinary 
expenses to be expended on the approval or authority of the 
Inspector General, and payments may be made on his certificate 
of necessity for confidential military purposes; and of which 
$1,800,000, to remain available until September 30, 2000, shall 
be for Procurement.

                               TITLE VII

                            RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

    For payment to the Central Intelligence Agency Retirement 
and Disability System Fund, to maintain proper funding level 
for continuing the operation of the Central Intelligence Agency 
Retirement and Disability System; $196,900,000.

               Intelligence Community Management Account


                     (including transfer of funds)


      For necessary expenses of the Intelligence Community 
Management Account; $121,080,000, of which $39,011,000 for the 
Advanced Research and Development Committee and the 
Environmental Intelligence and Applications Program shall 
remain available until September 30, 1999: Provided, That of 
the funds appropriated under this heading, $27,000,000 shall be 
transferred to the Department of Justice for the National Drug 
Intelligence Center to support the Department of Defense's 
counter-drug intelligence responsibilities, and of the said 
amount, $1,500,000 for Procurement shall remain available until 
September 30, 2000, and $3,000,000 for Research, development, 
test and evaluation shall remain available until September 30, 
1999.

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

      For payment to Kaho'olawe Island Conveyance, Remediation, 
and Environmental Restoration Fund, as authorized by law; 
$35,000,000, to remain available until expended.

                 National Security Education Trust Fund

      For the purposes of title VIII of Public Law 102-183, 
$2,000,000, to be derived from the National Security Education 
Trust Fund, to remain available until expended.

                               TITLE VIII

                           GENERAL PROVISIONS

      Sec. 8001. No part of any appropriation contained in this 
Act shall be used for publicity or propaganda purposes not 
authorized by the Congress.
      Sec. 8002. During the current fiscal year, provisions of 
law prohibiting the payment of compensation to, or employment 
of, any person not a citizen of the United States shall not 
apply to personnel of the Department of Defense: Provided, That 
salary increases granted to direct and indirect hire foreign 
national employees of the Department of Defense funded by this 
Act shall not be at a rate in excess of the percentage increase 
authorized by law for civilian employees of the Department of 
Defense whose pay is computed under the provisions of section 
5332 of title 5, United States Code, or at a rate in excess of 
the percentage increase provided by the appropriate host nation 
to its own employees, whichever is higher: Provided further, 
That this section shall not apply to Department of Defense 
foreign service national employees serving at United States 
diplomatic missions whose pay is set by the Department of State 
under the Foreign Service Act of 1980: Provided further, That 
the limitations of this provision shall not apply to foreign 
national employees of the Department of Defense in the Republic 
of Turkey.
      Sec. 8003. No part of any appropriation contained in this 
Act shall remain available for obligation beyond the current 
fiscal year, unless expressly so provided herein.
      Sec. 8004. No more than 20 per centum of the 
appropriations in this Act which are limited for obligation 
during the current fiscal year shall be obligated during the 
last two months of the fiscal year: Provided, That this section 
shall not apply to obligations for support of active duty 
training of reserve components or summer camp training of the 
Reserve Officers' Training Corps.


                          (transfer of funds)


      Sec. 8005. Upon determination by the Secretary of Defense 
that such action is necessary in the national interest, he may, 
with the approval of the Office of Management and Budget, 
transfer not to exceed $2,000,000,000 of working capital funds 
of the Department of Defense or funds made available in this 
Act to the Department of Defense for military functions (except 
military construction) between such appropriations or funds or 
any subdivision thereof, to be merged with and to be available 
for the same purposes, and for the same time period, as the 
appropriation or fund to which transferred: Provided, That such 
authority to transfer may not be used unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where 
the item for which funds are requested has been denied by 
Congress: Provided further, That the Secretary of Defense shall 
notify the Congress promptly of all transfers made pursuant to 
this authority or any other authority in this Act: Provided 
further, That no part of the funds in this Act shall be 
available to prepare or present a request to the Committees on 
Appropriations for reprogramming of funds, unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where 
the item for which reprogramming is requested has been denied 
by the Congress: Provided further, That of the authority 
provided under this section, not to exceed $65,000,000 shall be 
available to meet requirements for termination of the Reserve 
Mobilization Insurance Program, notwithstanding chapter 1214 of 
title 10 of the United States Code.


                          (transfer of funds)


      Sec. 8006. During the current fiscal year, cash balances 
in working capital funds of the Department of Defense 
established pursuant to section 2208 of title 10, United States 
Code, may be maintained in only suchamounts as are necessary at 
any time for cash disbursements to be made from such funds: Provided, 
That transfers may be made between such funds: Provided further, That 
transfers may be made between working capital funds and the ``Foreign 
Currency Fluctuations, Defense'' appropriation and the ``Operation and 
Maintenance'' appropriation accounts in such amounts as may be 
determined by the Secretary of Defense, with the approval of the Office 
of Management and Budget, except that such transfers may not be made 
unless the Secretary of Defense has notified the Congress of the 
proposed transfer. Except in amounts equal to the amounts appropriated 
to working capital funds in this Act, no obligations may be made 
against a working capital fund to procure or increase the value of war 
reserve material inventory, unless the Secretary of Defense has 
notified the Congress prior to any such obligation.
    Sec. 8007. Funds appropriated by this Act may not be used 
to initiate a special access program without prior notification 
30 calendar days in session in advance to the congressional 
defense committees.
      Sec. 8008. (a) None of the funds provided in this Act 
shall be available to initiate (1) a multiyear contract that 
employs economic order quantity procurement in excess of 
$20,000,000 in any one year of the contract or that includes an 
unfunded contingent liability in excess of $20,000,000, or (2) 
a contract for advance procurement leading to a multiyear 
contract that employs economic order quantity procurement in 
excess of $20,000,000 in any one year, unless the congressional 
defense committees have been notified at least thirty days in 
advance of the proposed contract award: Provided, That no part 
of any appropriation contained in this Act shall be available 
to initiate a multiyear contract for which the economic order 
quantity advance procurement is not funded at least to the 
limits of the Government's liability: Provided further, That no 
part of any appropriation contained in this Act shall be 
available to initiate multiyear procurement contracts for any 
systems or component thereof if the value of the multiyear 
contract would exceed $500,000,000 unless specifically provided 
in this Act: Provided further, That no multiyear procurement 
contract can be terminated without 10-day prior notification to 
the congressional defense committees: Provided further, That 
the execution of multiyear authority shall require the use of a 
present value analysis to determine lowest cost compared to an 
annual procurement.
      Funds appropriated in title III of this Act may be used 
for multiyear procurement contracts as follows:
            Apache Longbow radar;
            AV-8B aircraft; and
            Family of Medium Tactical Vehicles.
      (b) None of the funds provided in this Act and hereafter 
may be used to submit to Congress (or to any committee of 
Congress) a request for authority to enter into a contract 
covered by those provisions of subsection (a) that precede the 
first proviso of that subsection unless--
            (1) such request is made as part of the submission 
        of the President's Budget for the United States 
        Government for any fiscal year and is set forth in the 
        Appendix to that budget as part of proposed legislative 
        language for appropriations bills for the next fiscal 
        year; or
            (2) such request is formally submitted by the 
        President as a budget amendment; or
            (3) the Secretary of Defense makes such request in 
        writing to the congressional defense committees.
      Sec. 8009. Within the funds appropriated for the 
operation and maintenance of the Armed Forces, funds are hereby 
appropriated pursuant to section 401 of title 10, United States 
Code, for humanitarian and civic assistance costs under chapter 
20 of title 10, United States Code. Such funds may also be 
obligated for humanitarian and civic assistance costs 
incidental to authorized operations and pursuant to authority 
granted in section 401 of chapter 20 of title 10, United States 
Code, and these obligations shall be reported to Congress on 
September 30 of each year: Provided, That funds available for 
operation and maintenance shall be available for providing 
humanitarian and similar assistance by using Civic Action Teams 
in the Trust Territories of the Pacific Islands and freely 
associated states of Micronesia, pursuant to the Compact of 
Free Association as authorized by Public Law 99-239: Provided 
further, That upon a determination by the Secretary of the Army 
that such action is beneficial for graduate medical education 
programs conducted at Army medical facilities located in 
Hawaii, the Secretary of the Army may authorize the provision 
of medical services at such facilities and transportation to 
such facilities, on a nonreimbursable basis, for civilian 
patients from American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Marshall Islands, the Federated States of 
Micronesia, Palau, and Guam.
      Sec. 8010. (a) During fiscal year 1998, the civilian 
personnel of the Department of Defense may not be managed on 
the basis of anyend-strength, and the management of such 
personnel during that fiscal year shall not be subject to any 
constraint or limitation (known as an end-strength) on the number of 
such personnel who may be employed on the last day of such fiscal year.
      (b) The fiscal year 1999 budget request for the 
Department of Defense as well as all justification material and 
other documentation supporting the fiscal year 1999 Department 
of Defense budget request shall be prepared and submitted to 
the Congress as if subsections (a) and (b) of this provision 
were effective with regard to fiscal year 1999.
      (c) Nothing in this section shall be construed to apply 
to military (civilian) technicians.
      Sec. 8011. Notwithstanding any other provision of law, 
none of the funds made available by this Act shall be used by 
the Department of Defense to exceed, outside the fifty United 
States, its territories, and the District of Columbia, 125,000 
civilian workyears: Provided, That workyears shall be applied 
as defined in the Federal Personnel Manual: Provided further, 
That workyears expended in dependent student hiring programs 
for disadvantaged youths shall not be included in this workyear 
limitation.
      Sec. 8012. None of the funds made available by this Act 
shall be used in any way, directly or indirectly, to influence 
congressional action on any legislation or appropriation 
matters pending before the Congress.
      Sec. 8013. (a) None of the funds appropriated by this Act 
shall be used to make contributions to the Department of 
Defense Education Benefits Fund pursuant to section 2006(g) of 
title 10, United States Code, representing the normal cost for 
future benefits under section 3015(c) of title 38, United 
States Code, for any member of the armed services who, on or 
after the date of enactment of this Act--
            (1) enlists in the armed services for a period of 
        active duty of less than three years; or
            (2) receives an enlistment bonus under section 308a 
        or 308f of title 37, United States Code,
nor shall any amounts representing the normal cost of such 
future benefits be transferred from the Fund by the Secretary 
of the Treasury to the Secretary of Veterans Affairs pursuant 
to section 2006(d) of title 10, United States Code; nor shall 
the Secretary of Veterans Affairs pay such benefits to any such 
member: Provided, That in the case of a member covered by 
clause (1), these limitations shall not apply to members in 
combat arms skills or to members who enlist in the armed 
services on or after July 1, 1989, under a program continued or 
established by the Secretary of Defense in fiscal year 1991 to 
test the cost-effective use of special recruiting incentives 
involving not more than nineteen noncombat arms skills approved 
in advance by the Secretary of Defense: Provided further, That 
this subsection applies only to active components of the Army.
      (b) None of the funds appropriated by this Act shall be 
available for the basic pay and allowances of any member of the 
Army participating as a full-time student and receiving 
benefits paid by the Secretary of Veterans Affairs from the 
Department of Defense Education Benefits Fund when time spent 
as a full-time student is credited toward completion of a 
service commitment: Provided, That this subsection shall not 
apply to those members who have reenlisted with this option 
prior to October 1, 1987: Provided further, That this 
subsection applies only to active components of the Army.
      Sec. 8014. None of the funds appropriated by this Act 
shall be available to convert to contractor performance an 
activity or function of the Department of Defense that, on or 
after the date of enactment of this Act, is performed by more 
than ten Department of Defense civilian employees until a most 
efficient and cost-effective organization analysis is completed 
on such activity or function and certification of the analysis 
is made to the Committees on Appropriations of the House of 
Representatives and the Senate: Provided, That this section 
shall not apply to a commercial or industrial type function of 
the Departmentof Defense that: (1) is included on the 
procurement list established pursuant to section 2 of the Act of June 
25, 1938 (41 U.S.C. 47), popularly referred to as the Javits-Wagner-
O'Day Act; (2) is planned to be converted to performance by a qualified 
nonprofit agency for the blind or by a qualified nonprofit agency for 
other severely handicapped individuals in accordance with that Act; or 
(3) is planned to be converted to performance by a qualified firm under 
51 per centum Native American ownership.


                          (transfer of funds)


      Sec. 8015. Funds appropriated in title III of this Act 
for the Department of Defense Pilot Mentor-Protege Program may 
be transferred to any other appropriation contained in this Act 
solely for the purpose of implementing a Mentor-Protege Program 
developmental assistance agreement pursuant to section 831 of 
the National Defense Authorization Act for Fiscal Year 1991 
(Public Law 101-510; 10 U.S.C. 2301 note), as amended, under 
the authority of this provision or any other transfer authority 
contained in this Act.
      Sec. 8016. None of the funds in this Act may be available 
for the purchase by the Department of Defense (and its 
departments and agencies) of welded shipboard anchor and 
mooring chain 4 inches in diameter and under unless the anchor 
and mooring chain are manufactured in the United States from 
components which are substantially manufactured in the United 
States: Provided, That for the purpose of this section 
manufactured will include cutting, heat treating, quality 
control, testing of chain and welding (including the forging 
and shot blasting process): Provided further, That for the 
purpose of this section substantially all of the components of 
anchor and mooring chain shall be considered to be produced or 
manufactured in the United States if the aggregate cost of the 
components produced or manufactured in the United States 
exceeds the aggregate cost of the components produced or 
manufactured outside the United States: Provided further, That 
when adequate domestic supplies are not available to meet 
Department of Defense requirements on a timely basis, the 
Secretary of the service responsible for the procurement may 
waive this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations that such an 
acquisition must be made in order to acquire capability for 
national security purposes.
      Sec. 8017. None of the funds appropriated by this Act 
available for the Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS) shall be available for the 
reimbursement of any health care provider for inpatient mental 
health service for care received when a patient is referred to 
a provider of inpatient mental health care or residential 
treatment care by a medical or health care professional having 
an economic interest in the facility to which the patient is 
referred: Provided, That this limitation does not apply in the 
case of inpatient mental health services provided under the 
program for the handicapped under subsection (d) of section 
1079 of title 10, United States Code, provided as partial 
hospital care, or provided pursuant to a waiver authorized by 
the Secretary of Defense because of medical or psychological 
circumstances of the patient that are confirmed by a health 
professional who is not a Federal employee after a review, 
pursuant to rules prescribed by the Secretary, which takes into 
account the appropriate level of care for the patient, the 
intensity of services required by the patient, and the 
availability of that care.
      Sec. 8018. Funds available in this Act may be used to 
provide transportation for the next-of-kin of individuals who 
have been prisoners of war or missing in action from the 
Vietnam era to an annual meeting in the United States, under 
such regulations as the Secretary of Defense may prescribe.
      Sec. 8019. Notwithstanding any other provision of law, 
during the current fiscal year, the Secretary of Defense may, 
by Executive Agreement, establish with host nation governments 
in NATO member states a separate account into which such 
residual value amounts negotiated in the return of United 
States military installations in NATO member states may be 
deposited, in the currency of the host nation, in lieu of 
direct monetary transfers to the United States Treasury: 
Provided, That such credits may be utilized only for the 
construction of facilities to support United States military 
forces in that host nation, or such real property maintenance 
and base operating costs that are currently executed through 
monetary transfers to such host nations: Provided further, That 
the Department of Defense's budget submission for fiscal year 
1999 shall identify such sums anticipated in residual value 
settlements, and identify such construction, real property 
maintenance or base operating costs that shall be funded by the 
host nation through such credits: Provided further, That all 
military construction projects to be executed from such 
accounts must be previously approved in a prior Act of 
Congress: Provided further, That each such Executive Agreement 
with a NATO member host nation shall be reported to the 
congressional defense committees, the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate thirty days prior 
to the conclusion and endorsement of any such agreement 
established under this provision.
      Sec. 8020. None of the funds available to the Department 
of Defense may be used to demilitarize or dispose of M-1 
Carbines, M-1 Garand rifles, M-14 rifles, .22 caliber rifles, 
.30 caliber rifles, or M-1911 pistols.
      Sec. 8021. Notwithstanding any other provision of law, 
none of the funds appropriated by this Act shall be available 
to pay more than 50 per centum of an amount paid to any person 
under section 308 of title 37, United States Code, in a lump 
sum.
      Sec. 8022. No more than $500,000 of the funds 
appropriated or made available in this Act shall be used during 
a single fiscal year for any single relocation of an 
organization, unit, activity or function of the Department of 
Defense into or within the National Capital Region: Provided, 
That the Secretary of Defense may waive this restriction on a 
case-by-case basis by certifying in writing to the 
congressional defense committees that such a relocation is 
required in the best interest of the Government.
      Sec. 8023. A member of a reserve component whose unit or 
whose residence is located in a state which is not contiguous 
with another state is authorized to travel in a space required 
status on aircraft of the Armed Forces between home and place 
of inactive duty training, or place of duty in lieu of unit 
training assembly, when there is no road or railroad 
transportation (or combination of road and railroad 
transportation between those locations: Provided, That a member 
traveling in that status on a military aircraft pursuant to the 
authority provided in this section is not authorized to receive 
travel, transportation, or per diem allowances in connection 
with that travel.
      Sec. 8024. In addition to funds provided elsewhere in 
this Act, $8,000,000 is appropriated only for incentive 
payments authorized by section 504 of the Indian Financing Act 
of 1974, 25 U.S.C. 1544: Provided, That these payments shall be 
available only to contractors which have submitted 
subcontracting plans pursuant to 15 U.S.C. 637(d), and 
according to regulations which shall be promulgated by the 
Secretary of Defense within 90 days of the passage of this Act: 
Provided further, That contractors participating in the test 
program established by Section 854 of Public Law 101-189 (15 
U.S.C. 637 note) shall be eligible for the program established 
by Section 504 of the Indian Financing Act of 1974 (25 U.S.C. 
1544).
      Sec. 8025. During the current fiscal year, none of the 
funds available to the Department of Defense may be used to 
procure or acquire (1) defensive handguns unless such handguns 
are the M-9 or M-11 9 mm Department of Defense standard 
handguns, or (2) offensive handguns except for the Special 
Operations Forces: Provided, That the foregoing shall not apply 
to handguns and ammunition for marksmanship competitions.
      Sec. 8026. During the current fiscal year, funds 
appropriated or otherwise available for any Federal agency, the 
Congress, the judicial branch, or the District of Columbia may 
be used for the pay, allowances, and benefits of an employee as 
defined by section 2105 of title 5 or an individual employed by 
the government of the District of Columbia, permanent or 
temporary indefinite, who--
            (1) is a member of a Reserve component of the Armed 
        Forces, as described in section 10101 of title 10, or 
        the National Guard, as described in section 101 of 
        title 32;
            (2) performs, for the purpose of providing military 
        aid to enforce the law or providing assistance to civil 
        authorities in the protection or saving of life or 
        property or prevention of injury--
                    (A) Federal service under sections 331, 
                332, 333, or 12406 of title 10, or other 
                provision of law, as applicable; or
                    (B) full-time military service for his or 
                her State, the District of Columbia, the 
                Commonwealth of Puerto Rico, or a territory of 
                the United States; and
            (3) requests and is granted--
                    (A) leave under the authority of this 
                section; or
                    (B) annual leave, which may be granted 
                without regard to the provisions of sections 
                5519 and 6323(b) of title 5, if such employee 
                is otherwise entitled to such annual leave:
        Provided, That any employee who requests leave under 
        subsection (3)(A) for service described in subsection 
        (2) of this section is entitled to such leave, subject 
        to the provisions of this section and of the last 
        sentence of section 6323(b) of title 5, and such leave 
        shall be considered leave under section 6323(b) of 
        title 5.
      Sec. 8027. None of the funds appropriated by this Act 
shall be available to perform any cost study pursuant to the 
provisions of OMB Circular A-76 if the study being performed 
exceeds a period of twenty-four months after initiation of such 
study with respect to a single function activity or forty-eight 
months after initiation of such study for a multi-function 
activity.
      Sec. 8028. Funds appropriated by this Act for the 
American Forces Information Service shall not be used for any 
national or international political or psychological 
activities.
      Sec. 8029. Notwithstanding any other provision of law or 
regulation, the Secretary of Defense may adjust wage rates for 
civilian employees hired for certain health care occupations as 
authorized for the Secretary of Veterans Affairs by section 
7455 of title 38, United States Code.
      Sec. 8030. None of the funds appropriated or made 
available in this Act shall be used to reduce or disestablish 
the operation of the 53rd Weather Reconnaissance Squadron of 
the Air Force Reserve, if such action would reduce the WC-130 
Weather Reconnaissance mission below the levels funded in this 
Act.
      Sec. 8031. (a) Of the funds for the procurement of 
supplies or services appropriated by this Act, qualified 
nonprofit agencies for the blind or other severely handicapped 
shall be afforded the maximum practicable opportunity to 
participate as subcontractors and supplies in the performance 
of contracts let by the Department of Defense.
      (b) During the current fiscal year, a business concern 
which has negotiated with a military service or defense agency 
a subcontracting plan for the participation by small business 
concerns pursuant to section 8(d) of the Small Business Act (15 
U.S.C. 637(d)) shall be given credit toward meeting that 
subcontracting goal for any purchases made from qualified 
nonprofit agencies for the blind or other severely handicapped.
      (c) For the purpose of this section, the phrase 
``qualified nonprofit agency for the blind or other severely 
handicapped'' means a nonprofit agency for the blind or other 
severely handicapped that has been approved by the Committee 
for the Purchase from the Blind and Other Severely Handicapped 
under the Javits-Wagner-O'Day Act (41 U.S.C. 46-48).
      Sec. 8032. During the current fiscal year, net receipts 
pursuant to collections from third party payers pursuant to 
section 1095 of title 10, United States Code, shall be made 
available to the local facility of the uniformed services 
responsible for the collections and shall be over and above the 
facility's direct budget amount.
      Sec. 8033. During the current fiscal year, the Department 
of Defense is authorized to incur obligations of not to exceed 
$350,000,000 for purposes specified in section 2350j(c) of 
title 10, United States Code, in anticipation of receipt of 
contributions, only from the Government of Kuwait, under that 
section: Provided, That, upon receipt, such contributions from 
the Government of Kuwait shall be credited to the 
appropriations or fund which incurred such obligations.
      Sec. 8034. Of the funds made available in this Act, not 
less than $26,247,000 shall be available for the Civil Air 
Patrol, of which $22,702,000 shall be available for Operation 
and maintenance.
      Sec. 8035. (a) None of the funds appropriated in this Act 
are available to establish a new Department of Defense 
(department) federally funded research and development center 
(FFRDC), either as a new entity, or as a separate entity 
administrated by an organization managing another FFRDC, or as 
a nonprofit membership corporation consisting of a consortium 
of other FFRDCs and other non-profit entities.
      (b) Limitation on Compensation--Federally Funded Research 
and Development Center (FFRDC).--No member of a Board of 
Directors, Trustees, Overseers, Advisory Group, Special Issues 
Panel, Visiting Committee, or any similar entity of a defense 
FFRDC, and no paid consultant to any defense FFRDC, may be 
compensated for his or her services as a member of such entity, 
or as a paid consultant, except under the same conditions, and 
to the same extent, as members of the Defense Science Board: 
Provided, That a member of any such entity referred to 
previously in this subsection shall be allowed travel expenses 
and per diem as authorized under the Federal Joint Travel 
Regulations, when engaged in the performance of membership 
duties.
      (c) Notwithstanding any other provision of law, none of 
the funds available to the department from any source during 
fiscal year 1998 may be used by a defense FFRDC, through a fee 
or other payment mechanism, for charitable contributions, for 
construction of new buildings, for payment of cost sharing for 
projects funded by government grants, or for absorption of 
contract overruns.
      (d) Notwithstanding any other provision of law, of the 
funds available to the department during fiscal year 1998, not 
more than 6,206 staff years of technical effort (staff years) 
may be funded for defense FFRDCs: Provided, That of the 
specific amount referred to previously in this subsection, not 
more than 1,105 staff years may be funded for the defense 
studies and analysis FFRDCs.
      (e) Notwithstanding any other provision of law, the 
Secretary of Defense shall control the total number of staff 
years to be performed by defense FFRDCs during fiscal year 1998 
so as to reduce the total amounts appropriated in titles II, 
III, and IV of this Act by $71,800,000: Provided, That the 
total amounts appropriated in titles II, III, and IV of this 
Act are hereby reduced by $71,800,000 to reflect savings from 
the use of defense FFRDCs by the department.
      (f) Within 60 days after enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report presenting the specific amounts of staff 
years of technical effort to be allocated by the department for 
each defense FFRDC during fiscal year 1998: Provided, That, 
after the submission of the report required by this subsection, 
the department may not reallocate more than five per centum of 
an FFRDC's staff years among other defense FFRDCs until 30 days 
after a detailed justification for any such reallocation is 
submitted to the congressional defense committees.
      (g) The Secretary of Defense shall, with the submission 
of the department's fiscal year 1999 budget request, submit a 
report presenting the specific amounts of staff years of 
technical effort to be allocated for each defense FFRDC during 
that fiscal year.
      (h) No part of the reductions contained in subsection (e) 
of this section may be applied against any budget activity, 
activity group, subactivity group, line item, program element, 
program, project, subproject or activity which does not fund 
defense FFRDC activities within each appropriation account, and 
the reductions in subsection (e) shall be allocated on a 
proportional basis.
      (i) Not later than 90 days after enactment of this Act, 
the Secretary of Defense shall submit to the congressional 
defense committees a report listing the specific funding 
reductions allocated to each category listed in subsection (h) 
above pursuant to this section.
      Sec. 8036. None of the funds in this or any other Act 
shall be available for the preparation of studies on--
            (a) the cost effectiveness or feasibility of 
        removal and transportation of unitary chemical weapons 
        or agents from the eight chemical storage sites within 
        the continental United States to Johnston Atoll: 
        Provided, That this prohibition shall not apply to 
        General Accounting Office studies requested by a Member 
        of Congress or a Congressional Committee; and
            (b) the potential future uses of the nine chemical 
        disposal facilities other than for the destruction of 
        stockpile chemical munitions and as limited by section 
        1412(c)(2), Public Law 99-145: Provided, That this 
        prohibition does not apply to future use studies for 
        the CAMDS facility at Tooele, Utah.
      Sec. 8037. None of the funds appropriated or made 
available in this Act shall be used to procure carbon, alloy or 
armor steel plate for use in any Government-owned facility or 
property under the control of the Department of Defense which 
were not melted and rolled in the United States or Canada: 
Provided, That these procurement restrictions shall apply to 
any and all Federal Supply Class9515, American Society of 
Testing and Materials (ASTM) or American Iron and Steel Institute 
(AISI) specifications of carbon, alloy or armor steel plate: Provided 
further, That the Secretary of the military department responsible for 
the procurement may waive this restriction on a case-by-case basis by 
certifying in writing to the Committees on Appropriations of the House 
of Representatives and the Senate that adequate domestic supplies are 
not available to meet Department of Defense requirements on a timely 
basis and that such an acquisition must be made in order to acquire 
capability for national security purposes: Provided further, That these 
restrictions shall not apply to contracts which are in being as of the 
date of enactment of this Act.
    Sec. 8038. For the purposes of this Act, the term 
``congressional defense committees'' means the National 
Security Committee of the House of Representatives, the Armed 
Services Committee of the Senate, the Subcommittee on Defense 
of the Committee on Appropriations of the Senate, and the 
Subcommittee on National Security of the Committee on 
Appropriations of the House of Representatives.
    Sec. 8039. During the current fiscal year, the Department 
of Defense may acquire the modification, depot maintenance and 
repair of aircraft, vehicles and vessels as well as the 
production of components and other Defense-related articles, 
through competition between Department of Defense depot 
maintenance activities and private firms: Provided, That the 
Senior Acquisition Executive of the military department or 
defense agency concerned, with power of delegation, shall 
certify that successful bids include comparable estimates of 
all direct and indirect costs for both public and private bids: 
Provided further, That Office of Management and Budget Circular 
A-76 shall not apply to competitions conducted under this 
section.
    Sec. 8040. (a)(1) If the Secretary of Defense, after 
consultation with the United States Trade Representative, 
determines that a foreign country which is party to an 
agreement described in paragraph (2) has violated the terms of 
the agreement by discriminating against certain types of 
products produced in the United States that are covered by the 
agreement, the Secretary of Defense shall rescind the 
Secretary's blanket waiver of the Buy American Act with respect 
to such types of products produced in that foreign country.
    (2) An agreement referred to in paragraph (1) is any 
reciprocal defense procurement memorandum of understanding, 
between the United States and a foreign country pursuant to 
which the Secretary of Defense has prospectively waived the Buy 
American Act for certain products in that country.
    (b) The Secretary of Defense shall submit to Congress a 
report on the amount of Department of Defense purchases from 
foreign entities in fiscal year 1998. Such report shall 
separately indicate the dollar value of items for which the Buy 
American Act was waived pursuant to any agreement described in 
subsection (a)(2), the Trade Agreement Act of 1979 (19 U.S.C. 
2501 et seq.), or any international agreement to which the 
United States is a party.
    (c) For purposes of this section, the term ``Buy American 
Act'' means title III of the Act entitled ``An Act making 
appropriations for the Treasury and Post Office Departments for 
the fiscal year ending June 30, 1934, and for other purposes'', 
approved March 3, 1933 (41 U.S.C. 10a et seq.).
    Sec. 8041. The total amounts appropriated in titles II, 
III, and IV of this Act are hereby reduced by $300,000,000 to 
reflect savings from the use of advisory and assistance 
services by the Department of Defense: Provided, That the 
savings shall be applied to the following titles in the 
following amounts:
            Title II, Operation and Maintenance, $112,000,000;
            Title III, Procurement, $62,000,000; and
            Title IV, Research, Development, Test and 
        Evaluation, $126,000,000:
Provided further, That the savings specified shall be applied 
only to funds budgeted to purchase advisory and assistance 
services: Provided further, That the savings shall be applied 
on a pro-rata basis to each program, project and activity which 
included budget funds for advisory and assistance services.
    Sec. 8042. Appropriations contained in this Act that remain 
available at the end of the current fiscal year as a result of 
energy cost savings realized by the Department of Defense shall 
remain available for obligation for the next fiscal year to the 
extent, and for the purposes, provided in section 2865 of title 
10, United States Code.
    Sec. 8043. Notwithstanding any other provision of this Act, 
the amounts provided in all appropriation accounts in titles 
III and IV of this Act are reduced by 1.5 percent: Provided, 
That these reductions shall be applied on a pro-rata basis to 
each line item, program element, program, project, subproject, 
and activity within each appropriation account: Provided 
further, That not later than 60 days after the enactment of 
this Act, the Undersecretary of Defense (Comptroller) shall 
submit a report to the congressional defense committees listing 
the specific funding reductions allocated to each category 
listed in the preceding proviso pursuant to this section.


                     (including transfer of funds)


    Sec. 8044. Amounts deposited during the current fiscal year 
to the special account established under 40 U.S.C. 485(h)(2) 
and to the special account established under 10 U.S.C. 
2667(d)(1) are appropriated and shall be available until 
transferred by the Secretary of Defense to current applicable 
appropriations or funds of the Department of Defense under the 
terms and conditions specified by 40 U.S.C. 485(h)(2) (A) and 
(B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be 
available for the same time period and the same purposes as the 
appropriation to which transferred.
    Sec. 8045. During the current fiscal year, appropriations 
available to the Department of Defense may be used to reimburse 
a member of a reserve component of the Armed Forces who is not 
otherwise entitled to travel and transportation allowances and 
who occupies transient government housing while performing 
active duty for training or inactive duty training: Provided, 
That such members may be provided lodging in kind if transient 
government quarters are unavailable as if the member was 
entitled to such allowances under subsection (a) of section 404 
of title 37, United States Code: Provided further, That if 
lodging in kind is provided, any authorized service charge or 
cost of such lodging may be paid directly from funds 
appropriated for operation and maintenance of the reserve 
component of the member concerned.
    Sec. 8046. The President shall include with each budget for 
a fiscal year submitted to the Congress under section 1105 of 
title 31, United States Code, materials that shall identify 
clearly and separately the amounts requested in the budget for 
appropriation for that fiscal year for salaries and expenses 
related to administrative activities of the Department of 
Defense, the military departments, and the Defense Agencies.
    Sec. 8047. Notwithstanding any other provision of law, 
funds available for ``Drug Interdiction and Counter-Drug 
Activities, Defense'' may be obligated for the Young Marines 
program.
    Sec. 8048. Notwithstanding any other provision of this Act, 
the total amount appropriated in title IV of this Act is hereby 
reduced by $474,000,000: Provided, That each program element, 
program, project, subproject, and activity funded in title IV 
of this Act shall be allocated a pro-rata share of any of the 
reductions made by this section: Provided further, That not 
later than 60 days after the enactment of this Act, the 
Undersecretary of Defense (Comptroller) shall submit a report 
to the congressional defense committees listing the specific 
fundingreductions allocated to each category listed in the 
preceding proviso pursuant to this section.
    Sec. 8049. During the current fiscal year, amounts 
contained in the Department of Defense Overseas Military 
Facility Investment Recovery Account established by section 
2921(c)(1) of the National Defense Authorization Act of 1991 
(Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
until expended for the payments specified by section 2921(c)(2) 
of that Act.
    Sec. 8050. Of the funds appropriated or otherwise made 
available by this Act, not more than $119,200,000 shall be 
available for payment of the operating costs of NATO 
Headquarters: Provided, That the Secretary of Defense may waive 
this section for Department of Defense support provided to NATO 
forces in and around the former Yugoslavia.
    Sec. 8051. During the current fiscal year, appropriations 
which are available to the Department of Defense for operation 
and maintenance may be used to purchase items having an 
investment item unit cost of not more than $100,000.
    Sec. 8052. (a) During the current fiscal year, none of the 
appropriations or funds available to the Department of Defense 
Working Capital Funds shall be used for the purchase of an 
investment item for the purpose of acquiring a new inventory 
item for sale or anticipated sale during the current fiscal 
year or a subsequent fiscal year to customers of the Department 
of Defense Working Capital Funds if such an item would not have 
been chargeable to the Department of Defense Working Capital 
Funds during fiscal year 1994 and if the purchase of such an 
investment item would be chargeable during the current fiscal 
year to appropriations made to the Department of Defense for 
procurement.
    (b) The fiscal year 1999 budget request for the Department 
of Defense as well as all justification material and other 
documentation supporting the fiscal year 1999 Department of 
Defense budget shall be prepared and submitted to the Congress 
on the basis that any equipment which was classified as an end 
item and funded in a procurement appropriation contained in 
this Act shall be budgeted for in a proposed fiscal year 1999 
procurement appropriation and not in the supply management 
business area or any other area or category of the Department 
of Defense Working Capital Funds.
    Sec. 8053. None of the funds provided in this Act and 
hereafter shall be available for use by a Military Department 
to modify an aircraft, weapon, ship or other item of equipment, 
that the Military Department concerned plans to retire or 
otherwise dispose of within five years after completion of the 
modification: Provided, That this prohibition shall not apply 
to safety modifications: Provided further, That this 
prohibition may be waived by the Secretary of a Military 
Department if the Secretary determines it is in the best 
national security interest of the United States to provide such 
waiver and so notifies the congressional defense committees in 
writing.
    Sec. 8054. None of the funds appropriated by this Act for 
programs of the Central Intelligence Agency shall remain 
available for obligation beyond the current fiscal year, except 
for funds appropriated for the Reserve for Contingencies, which 
shall remain available until September 30, 1999.
    Sec. 8055. Notwithstanding any other provision of law, 
funds made available in this Act for the Defense Intelligence 
Agency may be used for the design, development, and deployment 
of General Defense Intelligence Program intelligence 
communications and intelligence information systems for the 
Services, the Unified and Specified Commands, and the component 
commands.
    Sec. 8056. Of the funds appropriated by the Department of 
Defense under the heading ``Operation and Maintenance, Defense-
Wide'', not less than $8,000,000 shall be made available only 
for the mitigation of environmental impacts, including training 
and technical assistance to tribes, related administrative 
support, the gathering of information, documenting of 
environmental damage, and developing a system for 
prioritization of mitigation and cost to complete estimates for 
mitigation, on Indian lands resulting from Department of 
Defense activities.
    Sec. 8057. Amounts collected for the use of the facilities 
of the National Science Center for Communications and 
Electronics during the current fiscal year pursuant to section 
1459(g) of the Department of Defense Authorization Act, 1986, 
and deposited to the special account established under 
subsection 1459(g)(2) of that Act are appropriated and shall be 
available until expended for the operation and maintenance of 
the Center as provided for in subsection 1459(g)(2).
    Sec. 8058. None of the funds appropriated in this Act may 
be used to fill the commander's position at any military 
medical facility with a health care professional unless the 
prospective candidate can demonstrate professional 
administrative skills.
    Sec. 8059. (a) None of the funds appropriated in this Act 
may be expended by an entity of the Department of Defense 
unless the entity, in expending the funds, complies with the 
Buy American Act. For purposes of this subsection, the term 
``Buy American Act'' means title III of the Act entitled ``An 
Act making appropriations for theTreasury and Post Office 
Departments for the fiscal year ending June 30, 1934, and for other 
purposes'', approved March 3, 1933 (41 U.S.C. 10a et seq.).
    (b) If the Secretary of Defense determines that a person 
has been convicted of intentionally affixing a label bearing a 
``Made in America'' inscription to any product sold in or 
shipped to the United States that is not made in America, the 
Secretary shall determine, in accordance with section 2410f of 
title 10, United States Code, whether the person should be 
debarred from contracting with the Department of Defense.
    (c) In the case of any equipment or products purchased with 
appropriations provided under this Act, it is the sense of the 
Congress that any entity of the Department of Defense, in 
expending the appropriation, purchase only American-made 
equipment and products, provided that American-made equipment 
and products are cost-competitive, quality-competitive, and 
available in a timely fashion.
    Sec. 8060. None of the funds appropriated by this Act shall 
be available for a contract for studies, analysis, or 
consulting services entered into without competition on the 
basis of an unsolicited proposal unless the head of the 
activity responsible for the procurement determines--
            (1) as a result of thorough technical evaluation, 
        only one source is found fully qualified to perform the 
        proposed work, or
            (2) the purpose of the contract is to explore an 
        unsolicited proposal which offers significant 
        scientific or technological promise, represents the 
        product of original thinking, and was submitted in 
        confidence by one source, or
            (3) the purpose of the contract is to take 
        advantage of unique and significant industrial 
        accomplishment by a specific concern, or to insure that 
        a new product or idea of a specific concern is given 
        financial support:
Provided, That this limitation shall not apply to contracts in 
an amount of less than $25,000, contracts related to 
improvements of equipment that is in development or production, 
or contracts as to which a civilian official of the Department 
of Defense, who has been confirmed by the Senate, determines 
that the award of such contract is in the interest of the 
national defense.
    Sec. 8061. (a) Except as provided in subsections (b) and 
(c), none of the funds made available by this Act may be used--
            (1) to establish a field operating agency; or
            (2) to pay the basic pay of a member of the Armed 
        Forces or civilian employee of the Department who is 
        transferred or reassigned from a headquarters activity 
        if the member or employee's place of duty remains at 
        the location of that headquarters.
    (b) The Secretary of Defense or Secretary of a military 
department may waive the limitations in subsection (a), on a 
case-by-case basis, if the Secretary determines, and certifies 
to the Committees on Appropriations of the House of 
Representatives and Senate that the granting of the waiver will 
reduce the personnel requirements or the financial requirements 
of the department.
    (c) This section does not apply to field operating agencies 
funded within the National Foreign Intelligence Program.
    Sec. 8062. Funds appropriated by this Act for intelligence 
activities are deemed to be specifically authorized by the 
Congress for purposes of section 504 of the National Security 
Act of 1947 (50 U.S.C. 414) during fiscal year 1998 until the 
enactment of the Intelligence Authorization Act for Fiscal Year 
1998.
    Sec. 8063. Notwithstanding section 303 of Public Law 96-487 
or any other provision of law, the Secretary of the Navy is 
authorized to lease real and personal property at Naval Air 
Facility, Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for 
commercial, industrial or other purposes.


                             (rescissions)


    Sec. 8064. Of the funds provided in Department of Defense 
Appropriations Acts, the following funds are hereby rescinded 
from the following accounts in the specified amounts:
            ``Shipbuilding and Conversion, Navy, 1996/2000'', 
        $35,600,000;
            ``Other Procurement, Navy, 1996/1998'', $3,300,000;
            ``Aircraft Procurement, Army, 1997/1999'', 
        $5,000,000;
            ``Procurement of Ammunition, Army, 1997/1999'', 
        $5,000,000;
            ``Other Procurement, Army, 1997/1999'', $6,000,000;
            ``Other Procurement, Navy, 1997/1999'', $2,200,000;
            ``Aircraft Procurement, Navy, 1997/1999'', 
        $24,000,000;
            ``Research, Development, Test and Evaluation, Army, 
        1997/1998'', $6,000,000;
            ``Research, Development, Test and Evaluation, Navy, 
        1997/1998'', $40,000,000;
            ``Research, Development, Test and Evaluation, Air 
        Force, 1997/1998'', $25,000,000;
            ``Research, Development, Test and Evaluation, 
        Defense-Wide, 1997/1998'', $24,000,000.
      Sec. 8065. None of the funds available in this Act may be 
used to reduce the authorized positions for military (civilian) 
technicians of the Army National Guard, the Air National Guard, 
Army Reserve and Air Force Reserve for the purpose of applying 
any administratively imposed civilian personnel ceiling, 
freeze, or reduction on military (civilian) technicians, unless 
such reductions are a direct result of a reduction in military 
force structure.
      Sec. 8066. None of the funds appropriated or otherwise 
made available in this Act may be obligated or expended for 
assistance to the Democratic People's Republic of North Korea 
unless specifically appropriated for that purpose.
      Sec. 8067. During the current fiscal year, funds 
appropriated in this Act are available to compensate members of 
the National Guard for duty performed pursuant to a plan 
submitted by a Governor of a State and approved by the 
Secretary of Defense under section 112 of title 32, United 
States Code: Provided, That during the performance of such 
duty, the members of the National Guard shall be under State 
command and control: Provided further, That such duty shall be 
treated as full-time National Guard duty for purposes of 
sections 12602 (a)(2) and (b)(2) of title 10, United States 
Code.
      Sec. 8068. Funds appropriated in this Act for operation 
and maintenance of the Military Departments, Unified and 
Specified Commands and Defense Agencies shall be available for 
reimbursement of pay, allowances and other expenses which would 
otherwise be incurred against appropriations for the National 
Guard and Reserve when members of the National Guard and 
Reserve provide intelligence support to Unified Commands, 
Defense Agencies and Joint Intelligence Activities, including 
the activities and programs included within the General Defense 
Intelligence Program and the Consolidated Cryptologic Program: 
Provided, That nothing in this section authorizes deviation 
from established Reserve and National Guard personnel and 
training procedures.
      Sec. 8069. During the current fiscal year, none of the 
funds appropriated in this Act may be used to reduce the 
civilian medical and medical support personnel assigned to 
military treatment facilities below the September 30, 1997 
level: Provided, That the Service Surgeons General may waive 
this section by certifying to the congressional defense 
committees that the beneficiary population is declining in some 
catchment areas and civilian strength reductions may be 
consistent with responsible resource stewardship and 
capitation-based budgeting.


                     (including transfer of funds)


      Sec. 8070. None of the funds appropriated in this Act may 
be transferred to or obligated from the Pentagon Reservation 
Maintenance Revolving Fund, unless the Secretary of Defense 
certifies that the total cost for the planning, design, 
construction and installation of equipment for the renovation 
of the Pentagon Reservation will not exceed $1,118,000,000.
      Sec. 8071. (a) None of the funds available to the 
Department of Defense for any fiscal year for drug interdiction 
or counter-drug activities may be transferred to any other 
department or agency of the United States except as 
specifically provided in an appropriations law.
      (b) None of the funds available to the Central 
Intelligence Agency for any fiscal year for drug interdiction 
and counter-drug activities may be transferred to any other 
department or agency of the United States except as 
specifically provided in an appropriations law.


                          (transfer of funds)


      Sec. 8072. Appropriations available in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' for 
increasing energy and water efficiency in Federal buildings 
may, during their period of availability, be transferred to 
other appropriations or funds of the Departmentof Defense for 
projects related to increasing energy and water efficiency, to be 
merged with and to be available for the same general purposes, and for 
the same time period, as the appropriation or fund to which 
transferred.
      Sec. 8073. None of the funds appropriated by this Act may 
be used for the procurement of ball and roller bearings other 
than those produced by a domestic source and of domestic 
origin: Provided, That the Secretary of the military department 
responsible for such procurement may waive this restriction on 
a case-by-case basis by certifying in writing to the Committees 
on Appropriations of the House of Representatives and the 
Senate, that adequate domestic supplies are not available to 
meet Department of Defense requirements on a timely basis and 
that such an acquisition must be made in order to acquire 
capability for national security purposes.
      Sec. 8074. Notwithstanding any other provision of law, 
funds available to the Department of Defense shall be made 
available to provide transportation of medical supplies and 
equipment, on a nonreimbursable basis, to American Samoa: 
Provided, That notwithstanding any other provision of law, 
funds available to the Department of Defense shall be made 
available to provide transportation of medical supplies and 
equipment, on a nonreimbursable basis, to the Indian Health 
Service when it is in conjunction with a civil-military 
project.
      Sec. 8075. None of the funds in this Act may be used to 
purchase any supercomputer which is not manufactured in the 
United States, unless the Secretary of Defense certifies to the 
congressional defense committees that such an acquisition must 
be made in order to acquire capability for national security 
purposes that is not available from United States 
manufacturers.
      Sec. 8076. Notwithstanding any other provision of law, 
the Naval shipyards of the United States shall be eligible to 
participate in any manufacturing extension program financed by 
funds appropriated in this or any other Act.
      Sec. 8077. Notwithstanding any other provision of law, 
each contract awarded by the Department of Defense during the 
current fiscal year for construction or service performed in 
whole or in part in a State which is not contiguous with 
another State and has an unemployment rate in excess of the 
national average rate of unemployment as determined by the 
Secretary of Labor, shall include a provision requiring the 
contractor to employ, for the purpose of performing that 
portion of the contract in such State that is not contiguous 
with another State, individuals who are residents of such State 
and who, in the case of any craft or trade, possess or would be 
able to acquire promptly the necessary skills: Provided, That 
the Secretary of Defense may waive the requirements of this 
section, on a case-by-case basis, in the interest of national 
security.
      Sec. 8078. During the current fiscal year, the Army shall 
use the former George Air Force Base as the airhead for the 
National Training Center at Fort Irwin: Provided, That none of 
the funds in this Act shall be obligated or expended to 
transport Army personnel into Edwards Air Force Base for 
training rotations at the National Training Center.
      Sec. 8079. (a) The Secretary of Defense shall submit, on 
a quarterly basis, a report to the congressional defense 
committees, the Committee on International Relations of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate setting forth all costs (including incremental 
costs) incurred by the Department of Defense during the 
preceding quarter in implementing or supporting resolutions of 
the United Nations Security Council, including any such 
resolution calling for international sanctions, international 
peacekeeping operations, and humanitarian missions undertaken 
by the Department of Defense. The quarterly report shall 
include an aggregate of all such Department of Defense costs by 
operation or mission.
      (b) The Secretary of Defense shall detail in the 
quarterly reports all efforts made to seek credit against past 
United Nations expenditures and all efforts made to seek 
compensation from the United Nations for costs incurred by the 
Department of Defense in implementing and supporting United 
Nations activities.
      Sec. 8080. (a) Limitation on Transfer of Defense Articles 
and Services.--Notwithstanding any other provision of law, none 
of the funds available to the Department of Defense for the 
current fiscal year may be obligated or expended to transfer to 
another nation or an international organization any defense 
articles or services (other than intelligence services) for use 
in the activities described in subsection (b) unless the 
congressional defense committees, the Committee on 
International Relations of the House of Representatives, and 
the Committee on Foreign Relations of the Senate are notified 
15 days in advance of such transfer.
      (b) Covered Activities.--This section applies to--
            (1) any international peacekeeping or peace-
        enforcement operation under the authority of chapter VI 
        or chapter VII of the United Nations Charterunder the 
authority of a United Nations Security Council resolution; and
            (2) any other international peacekeeping, peace-
        enforcement, or humanitarian assistance operation.
      (c) Required Notice.--A notice under subsection (a) shall 
include the following:
            (1) A description of the equipment, supplies, or 
        services to be transferred.
            (2) A statement of the value of the equipment, 
        supplies, or services to be transferred.
            (3) In the case of a proposed transfer of equipment 
        or supplies--
                    (A) a statement of whether the inventory 
                requirements of all elements of the Armed 
                Forces (including the reserve components) for 
                the type of equipment or supplies to be 
                transferred have been met; and
                    (B) a statement of whether the items 
                proposed to be transferred will have to be 
                replaced and, if so, how the President proposes 
                to provide funds for such replacement.
      Sec. 8081. To the extent authorized by subchapter VI of 
chapter 148 of title 10, United States Code, the Secretary of 
Defense shall issue loan guarantees in support of U.S. defense 
exports not otherwise provided for: Provided, That the total 
contingent liability of the United States for guarantees issued 
under the authority of this section may not exceed 
$15,000,000,000: Provided further, That the exposure fees 
charged and collected by the Secretary for each guarantee, 
shall be paid by the country involved and shall not be financed 
as part of a loan guaranteed by the United States: Provided 
further, That the Secretary shall provide quarterly reports to 
the Committees on Appropriations, Armed Services and Foreign 
Relations of the Senate and the Committees on Appropriations, 
National Security and International Relations in the House of 
Representatives on the implementation of this program: Provided 
further, That amounts charged for administrative fees and 
deposited to the special account provided for under section 
2540c(d) of title 10, shall be available for paying the costs 
of administrative expenses of the Department of Defense that 
are attributable to the loan guarantee program under subchapter 
VI of chapter 148 of title 10.
      Sec. 8082. None of the funds available to the Department 
of Defense shall be obligated or expended to make a financial 
contribution to the United Nations for the cost of a United 
Nations peacekeeping activity (whether pursuant to assessment 
or a voluntary contribution) or for payment of any United 
States arrearage to the United Nations.
      Sec. 8083. None of the funds available to the Department 
of Defense under this Act shall be obligated or expended to pay 
a contractor under a contract with the Department of Defense 
for costs of any amount paid by the contractor to an employee 
when--
            (1) such costs are for a bonus or otherwise in 
        excess of the normal salary paid by the contractor to 
        the employee; and
            (2) such bonus is part of restructuring costs 
        associated with a business combination.
      Sec. 8084. (a) None of the funds appropriated or 
otherwise made available in this Act may be used to transport 
or provide for the transportation of chemical munitions or 
agents to the Johnston Atoll for the purpose of storing or 
demilitarizing such munitions or agents.
      (b) The prohibition in subsection (a) shall not apply to 
any obsolete World War II chemical munition or agent of the 
United States found in the World War II Pacific Theater of 
Operations.
      (c) The President may suspend the application of 
subsection (a) during a period of war in which the United 
States is a party.
      Sec. 8085. None of the funds provided in title II of this 
Act for ``Former Soviet Union Threat Reduction'' may be 
obligated or expended to finance housing for any individual who 
was a member of the military forces of the Soviet Union or for 
any individual who is or was a member of the military forces of 
the Russian Federation.
      Sec. 8086. During the current fiscal year, no more than 
$10,000,000 of appropriations made in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' may be 
transferred to appropriations available for the pay of military 
personnel, to be merged with, and to be available for the same 
time period as the appropriations to which transferred, to be 
used in support of such personnel in connection with support 
and services for eligible organizations and activities outside 
the Department of Defense pursuant to section 2012 of title 10, 
United States Code.
      Sec. 8087. For purposes of section 1553(b) of title 31, 
United States Code, any subdivision of appropriations made in 
this Act under the heading ``Shipbuilding and Conversion, 
Navy'' shall be considered to be for the same purpose as any 
subdivision under the heading ``Shipbuilding and Conversion, 
Navy'' appropriations in any prior year, and the one percent 
limitation shall apply to the total amount of the 
appropriation.
      Sec. 8088. Notwithstanding 31 U.S.C. 1552(a), not more 
than $14,000,000 appropriated under the heading ``Aircraft 
Procurement, Air Force'' in Public Law 102-396 which was 
available and obligated for the B-2 Aircraft Program shall 
remain available for expenditure and for adjusting obligations 
for such program until September 30, 2003.
      Sec. 8089. During the current fiscal year, in the case of 
an appropriation account of the Department of Defense for which 
the period of availability for obligation has expired or which 
has closed under the provisions of section 1552 of title 31, 
United States Code, and which has a negative unliquidated or 
unexpended balance, an obligation or an adjustment of an 
obligation may be charged to any current appropriation account 
for the same purpose as the expired or closed account if--
            (1) the obligation would have been properly 
        chargeable (except as to amount) to the expired or 
        closed account before the end of the period of 
        availability or closing of that account;
            (2) the obligation is not otherwise properly 
        chargeable to any current appropriation account of the 
        Department of Defense; and
            (3) in the case of an expired account, the 
        obligation is not chargeable to a current appropriation 
        of the Department of Defense under the provisions of 
        section 1405(b)(8) of the National Defense 
        Authorization Act for Fiscal Year 1991, Public Law 101-
        510, as amended (31 U.S.C. 1551 note): Provided, That 
        in the case of an expired account, if subsequent review 
        or investigation discloses that there was not in fact a 
        negative unliquidated or unexpended balance in the 
        account, any charge to a current account under the 
        authority of this section shall be reversed and 
        recorded against the expired account: Provided further, 
        That the total amount charged to a current 
        appropriation under this section may not exceed an 
        amount equal to one percent of the total appropriation 
        for that account.


                          (transfer of funds)


      Sec. 8090. Upon enactment of this Act, the Secretary of 
Defense shall make the following transfers of funds: Provided, 
That the amounts transferred shall be available for the same 
purposes as the appropriations to which transferred, and for 
the same time period as the appropriation from which 
transferred: Provided further, That the amounts shall be 
transferred between the following appropriations in the amount 
specified:
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1989/2000'':
                            SSN-688 attack submarine program, 
                        $3,000,000;
                            DDG-51 destroyer program, 
                        $1,500,000;
                            LHD-1 amphibious assault ship 
                        program, $8,000,000;
                            T-AO fleet oiler program, 
                        $3,453,000;
                            AOE combat support ship program, 
                        $3,600,000; and
                            For craft, outfitting, and post 
                        delivery, $2,019,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1989/2000'':
                            SSN-21 attack submarine program, 
                        $21,572,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1991/2001'':
                            DDG-51 destroyer program, 
                        $1,060,000;
                            LHD-1 amphibious assault ship 
                        program, $1,600,000;
                            LSD-41 cargo variant ship program, 
                        $2,666,000;
                            AOE combat support ship program, 
                        $7,307,000; and
                            For craft, outfitting, and post 
                        delivery, $12,000,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1991/2001'':
                            SSN-21 attack submarine program, 
                        $24,633,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1996/2000'':
                            LHD-1 amphibious assault ship 
                        program, $5,592,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1996/2000'':
                            SSN-21 attack submarine program, 
                        $5,592,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1994/1998'':
                            LHD-1 amphibious assault ship 
                        program, $400,000; and
                            DDG-51 destroyer program, 
                        $1,054,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1995/1999'':
                            For craft, outfitting, and post 
                        delivery, conversions, and first 
                        destination transportation, $715,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1996/2000'':
                            LHD-1 amphibious assault ship 
                        program, $17,513,000; and
                            For craft, outfitting, and post 
                        delivery, conversions, and first 
                        destination transportation, $878,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1997/2001'':
                            For craft, outfitting, and post 
                        delivery, conversions, and first 
                        destination transportation, $3,600,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1997/2001'':
                            DDG-51 destroyer program, 
                        $24,160,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1996/2000'':
                            Fast Patrol Boat, $9,500,000;
            To:
                    ``Research, Development, Test and 
                Evaluation, Navy, 1998/1999'', $9,500,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1997/2001'':
                            Oceanographic ship SWATH, 
                        $45,000,000;
            To:
                    ``Research, Development, Test and 
                Evaluation, Navy, 1998/1999'', $45,000,000;
            From:
                    ``Aircraft Procurement, Air Force, 1997/
                1999'', $73,531,000;
            To:
                    ``Research, Development, Test and 
                Evaluation, Air Force, 1997/1998'', 
                $73,531,000:
Provided further, That notwithstanding any other provision of 
law, to facilitate a full and final settlement of all claims 
under contracts N00024-79-C-2614 and N00024-77-C-2031, the 
Secretary of the Navy may offset the amount of $1,660,680.84, 
owed by the Navy under contract N00024-79-C-2614 for the T-ARC-
7 against an equal amount, $1,660,680.84, owed to the Navy 
under contract N00024-77-C-2031 for the AD 43.
    Sec. 8091. The Under Secretary of Defense (Comptroller) 
shall submit to the congressional defense committees by 
February 1, 1998 a detailed report identifying, by amount and 
by separate budget activity, activity group, subactivity group, 
line item, program element, program, project, subproject, and 
activity, any activity for which the fiscal year 1999 budget 
request was reduced because Congress appropriated funds above 
the President's budget request for that specific activity for 
fiscal year 1998.
    Sec. 8092. (a) None of the funds available to the 
Department of Defense under this Act may be obligated or 
expended to reimburse a defense contractor for restructuring 
costs associated with a business combination of the defense 
contractor that occurs after the date of enactment of this Act 
unless--
            (1) the auditable savings for the Department of 
        Defense resulting from the restructuring will exceed 
        the costs allowed by a factor of at least two to one; 
        or
            (2) the savings for the Department of Defense 
        resulting from the restructuring will exceed the costs 
        allowed and the Secretary of Defense determines that 
        the business combination will result in the 
        preservation of a critical capability that might 
        otherwise be lost to the Department; and
            (3) the report required by Section 818(e) of Public 
        Law 103-337 to be submitted to Congress in 1997 is 
        submitted.
    (b) Not later than April 1, 1998, the Comptroller General 
shall, in consultation with the Inspector General of the 
Department of Defense, the Secretary of Defense, and the 
Secretary of Labor, submit to Congress a report which shall 
include the following:
            (1) an analysis and breakdown of the restructuring 
        costs paid by or submitted to the Department of Defense 
        to companies involved in business combinations since 
        1993;
            (2) an analysis of the specific costs associated 
        with workforce reductions;
            (3) an analysis of the services provided to the 
        workers affected by business combinations;
            (4) an analysis of the effectiveness of the 
        restructuring costs used to assist laid off workers in 
        gaining employment; and
            (5) in accordance with section 818 of Public Law 
        103-337, an analysis of the savings reached from the 
        business combination relative to the restructuring 
        costs paid by the Department of Defense.
    (c) The report should set forth recommendations to make 
this program more effective for workers affected by business 
combinations and more efficient in terms of the use of Federal 
dollars.
    Sec. 8093. Funds appropriated in title II of this Act for 
supervision and administration costs for facilities maintenance 
and repair, minor construction, or design projects may be 
obligated at the time the reimbursable order is accepted by the 
performing activity: Provided, That for the purpose of this 
section, supervision and administration costs includes all in-
house Government cost.
    Sec. 8094. The Secretary of Defense may waive reimbursement 
of the cost of conferences, seminars, courses of instruction, 
or similar educational activities of the Asia-Pacific Center 
for Security Studies for military officers and civilian 
officials of foreign nations if the Secretary determines that 
attendance by such personnel, withoutreimbursement, is in the 
national security interest of the United States: Provided, That costs 
for which reimbursement is waived pursuant to this subsection shall be 
paid from appropriations available for the Asia-Pacific Center.
    Sec. 8095. (a) Notwithstanding any other provision of law, 
the Chief of the National Guard Bureau may permit the use of 
equipment of the National Guard Distance Learning Project by 
any person or entity on a space-available, reimbursable basis. 
The Chief of the National Guard Bureau shall establish the 
amount of reimbursement for such use on a case-by-case basis.
    (b) Amounts collected under subsection (a) shall be 
credited to funds available for the National Guard Distance 
Learning Project and be available to defray the costs 
associated with the use of equipment of the project under that 
subsection. Such funds shall be available for such purposes 
without fiscal year limitation.
    Sec. 8096. Using funds available by this Act or any other 
Act, the Secretary of the Air Force, pursuant to a 
determination under section 2690 of title 10, United States 
Code, may implement cost-effective agreements for required 
heating facility modernization in the Kaiserslautern Military 
Community in the Federal Republic of Germany: Provided, That in 
the City of Kaiserslautern such agreements will include the use 
of United States anthracite as the base load energy for 
municipal district heat to the United States Defense 
installations: Provided further, That at Landstuhl Army 
Regional Medical Center and Ramstein Air Base, furnished heat 
may be obtained from private, regional or municipal services, 
if provisions are included for the consideration of United 
States coal as an energy source.
    Sec. 8097. Notwithstanding any other provision of law, and 
notwithstanding the provisions in section 7306 of title 10, 
United States Code, in addition to amounts otherwise 
appropriated or made available by this Act, $13,000,000 is 
appropriated to the Department of the Navy and shall be 
available only for a grant to the Intrepid Sea-Air-Space 
Foundation only for the refurbishment of the former U.S.S. 
Intrepid (CV 11).
    Sec. 8098. In accordance with section 1557 of title 31, 
United States Code, the following obligated balance shall be 
exempt from subchapter IV of chapter 15 of such title and shall 
remain available for expenditure without fiscal year 
limitation: Funds obligated by the Economic Development 
Administration for EDA Project No. 04-49-04095 from funds made 
available in the Department of Defense Appropriations Act, 1994 
(Public Law 103-189).
    Sec. 8099. None of the funds provided by this Act may be 
used to pay costs of instruction for an Air Force officer for 
enrollment commencing during the 1998-1999 academic year in a 
postgraduate degree program at a civilian educational 
institution if--
            (1) the degree program to be pursued by that 
        officer is offered by the Air Force Institute of 
        Technology (or was offered by that institute during the 
        1996-1997 academic year);
            (2) the officer is qualified for enrollment at the 
        Air Force Institute of Technology in that degree 
        program; and
            (3) the number of students commencing that degree 
        program at the Air Force Institute of Technology during 
        the first semester of the 1998-1999 academic year is 
        less than the number of students commencing that degree 
        program for the first semester of the 1996-1997 
        academic year.
    Sec. 8100. During the current fiscal year, the amounts 
which are necessary for the operation and maintenance of the 
Fisher Houses administered by the Departments of the Army, the 
Navy, and the Air Force are hereby appropriated, to be derived 
from amounts which are available in the applicable Fisher House 
trust fund established under 10 U.S.C. 2221 for the Fisher 
Houses of each such department.
    Sec. 8101. During the current fiscal year, refunds 
attributable to the use of the Government travel card by 
military personnel and civilian employees of the Department of 
Defense may be credited to operation and maintenance accounts 
of the Department of Defense which are current when the refunds 
are received.
    Sec. 8102. During the current fiscal year, not more than a 
total of $60,000,000 in withdrawal credits may be made by the 
Marine Corps Supply Management activity group of the Navy 
Working Capital Fund, Department of Defense Working Capital 
Funds, to the credit of current applicable appropriations of a 
Department of Defense activity in connection with the 
acquisition of critical low density repairables that are 
capitalized into the Navy Working Capital Fund.
    Sec. 8103. Notwithstanding 31 U.S.C. 3902, during the 
current fiscal year interest penalties may be paid by the 
Department of Defense from funds financing the operation of the 
military department or defense agency with which the invoice or 
contract payment is associated.
    Sec. 8104. At the time the President submits his budget for 
fiscal year 1999, the Department of Defense shall transmit to 
the congressional defense committees a budget justification 
document for the active and reserve Military Personnel 
accounts, to be known as the ``M-1'', which shall identify, at 
the budget activity, activity group, and subactivity group 
level, the amounts requested by the President to be 
appropriated to the Department of Defense for military 
personnel in any budget request, or amended budget request, for 
fiscal year 1999.
    Sec. 8105. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$100,000,000 to reflect savings due to excess inventory, to be 
distributed as follows: ``Operation and Maintenance, Army'', 
$40,000,000; ``Operation and Maintenance, Navy'', $40,000,000; 
and ``Operation and Maintenance, Air Force'', $20,000,000.
    Sec. 8106. Notwithstanding any other provision in this Act, 
the total amount appropriated in title III of this Act is 
hereby reduced by $75,000,000 to reflect savings from repeal of 
section 2403 of title 10, United States Code.
    Sec. 8107. The Secretary of the Army may exchange or sell 
one Army C-20 aircraft and may apply the exchange allowance or 
sale proceeds in whole or in part payment for the acquisition 
of one C-37 aircraft: Provided, That in addition to such 
exchange allowance or sale proceeds, of the amount appropriated 
for fiscal year 1998 for Aircraft Procurement, Air Force, not 
more than $6,000,000 shall be made available for acquisition of 
the C-37 for the United States Army: Provided further, That in 
addition to such exchange allowance or sale proceeds, of the 
amount appropriated for fiscal year 1997 for Aircraft 
Procurement, Air Force, not more than $27,100,000 shall be made 
available for acquisition of the C-37 for the United States 
Army.
    Sec. 8108. During the current fiscal year, the Secretary of 
Defense may award contracts for capital assets having a 
development or acquisition cost of not less than $100,000 of a 
Working Capital Fund in advance of the availability of funds in 
the Working Capital Fund for minor construction, automatic data 
processing equipment, software, equipment, and other capital 
improvements.
    Sec. 8109. From funds made available by this Act for the 
Maritime Technology Program up to $250,000 shall be made 
available to assist with a pilot project that will facilitate 
the transfer of commercial cruise ship shipbuilding technology 
and expertise to U.S. yards, utilize the experience and 
expertise of existing U.S.-flag cruise ship operators, and 
enable the operation of a U.S.-flag foreign-built cruise ship, 
and two newly-constructed U.S.-flag cruise ships: Provided, 
That a person (including a related person with respect to that 
person) who, within 18 months after the date of enactment, 
enters into a binding contract for construction in the United 
States of two cruise ships,which contract shall provide for the 
construction of two cruise ships of equal or greater size than the 
cruise ship being operated by such person on the date of enactment and 
shall require the delivery of the first cruise ship no later than 
January 1, 2005, and the second cruise ship no later than January 1, 
2008, may document with a coastwise endorsement a cruise ship 
constructed pursuant to this section and a foreign-built cruise ship 
otherwise in compliance with 46 U.S.C. sections 289, 883 and 12106 
until such date which is twenty-four (24) months after the delivery of 
the second cruise ship or any subsequently delivered cruise ship: 
Provided further, That a person (including a related person with 
respect to that person) within the meaning of 46 U.S.C. section 801 may 
not operate a U.S.-flag foreign-built cruise ship, or any other cruise 
ship, in coastwise trade between or among the islands of Hawaii, upon 
execution of the contract referred to in this section and continuing 
throughout the life expectancy (as that term is used in 46 U.S.C. App 
1125) of a newly constructed U.S. flag cruise ship referred to in this 
section, unless the cruise ship is operated by a person (including a 
related person with respect to that person) that is operating a cruise 
ship in coastwise trade between or among the islands of Hawaii on the 
date of enactment, except if any cruise ship constructed pursuant to 
this section operates in regular service other than between or among 
the islands of Hawaii: Provided further, That for purposes of this 
section the term ``cruise ship'' means a vessel that is at least 10,000 
gross tons (as measured under chapter 143 of title 46, United States 
Code) and has berth or stateroom accommodations for at least 275 
passengers: Provided further, That for purposes of this section, unless 
otherwise defined in this section, the term ``person'' means a 
corporation, partnership or association the controlling interest of 
which is owned by citizens of the United States within the meaning of 
46 U.S.C. section 802(b): Provided further, That for purposes of this 
section the term ``related person'' means with respect to a person (i) 
a holding company, subsidiary, affiliate or association of the person 
and (ii) an officer, director, or agent of the person or of an entity 
referred to in (i): Provided further, That none of the funds provided 
in this or any other Act may be obligated for the tooling to construct 
or the construction of vessels addressed by this section.
      Sec. 8110. The Secretary of Defense shall submit to the 
congressional defense committees not later than November 15, 
1997 an aviation safety plan outlining an appropriate level of 
navigational safety upgrades for all Department of Defense 
aircraft and the associated funding profile to install these 
upgrades in an expeditious manner.
      Sec. 8111. Notwithstanding any other provision of law, 
the Secretary of Defense shall obligate the funds provided for 
University Research Initiatives in the Department of Defense 
Appropriations Act, 1997 (titles I through VIII under section 
101(b) of Public Law 104-208) for the projects and in the 
amounts provided for in House Report 104-863 of the House of 
Representatives, 104th Congress, second session.
      Sec. 8112. The Secretary of Defense shall submit to the 
Committees on Appropriations of the House of Representatives 
and Senate, not later than April 15, 1998, a report on 
alternatives for current theater combat simulations: Provided, 
That this report shall be based on a review and evaluation by 
the Defense Science Board of the adequacy of the current models 
used by the Department of Defense for theater combat 
simulations, with particular emphasis on the tactical warfare 
(TACWAR) model and the ability of that model to adequately 
measure airpower, stealth, and other asymmetrical United States 
warfighting advantages, and shall include the recommendations 
of the Defense Science Board for improvements to current models 
and modeling techniques.
      Sec. 8113. Effective on June 30, 1998, section 8106(a) of 
the Department of Defense Appropriations Act, 1997 (titles I 
through VIII of the matter under section 101(b) of Public Law 
104-208; 110 Stat. 3009-111; 10 U.S.C. 113 note), is amended by 
striking out ``$3,000,000'' and inserting in lieu thereof 
``$1,000,000''.
      Sec. 8114. None of the funds appropriated in title IV of 
this Act may be used to procure end-items for delivery to 
military forces for operational training, operational use or 
inventory requirements: Provided, That this restriction does 
not apply to end-items used in development, prototyping, and 
test activities preceding and leading to acceptance for 
operational use: Provided further, That this restriction does 
not apply to programs funded within the National Foreign 
Intelligence Program: Provided further, That the Secretary of 
Defense may waive this restriction on a case-by-case basis by 
certifying in writing to the Committees on Appropriations of 
the House of Representatives and the Senate that it is in the 
national security interest to do so.
      Sec. 8115. It is the sense of the Congress that all 
member nations of the North Atlantic Treaty Organization (NATO) 
should contribute their proportionate share to pay for the 
costs of the Partnership for Peace program and for any future 
costs attributable to the expansion of NATO.
      Sec. 8116. The budget of the President for fiscal year 
1999 submitted to Congress pursuant to section 1105of title 31, 
United States Code, and each annual budget request thereafter, shall 
include budget activity groups (known as ``subactivities'') in the 
operation and maintenance accounts of the military departments and 
other appropriation accounts, as may be necessary, to separately 
identify all costs incurred by the Department of Defense to support the 
expansion of the North Atlantic Treaty Organization. The budget 
justification materials submitted to Congress in support of the budget 
of the Department of Defense for fiscal year 1999, and subsequent 
fiscal years, shall provide complete, detailed estimates for the 
incremental costs of such expansion.
      Sec. 8117. None of the funds made available in this Act 
may be obligated or expended to enter into or renew a contract 
with a contractor that is subject to the reporting requirement 
set forth in subsection (d) of section 4212 of title 38, United 
States Code, but has not submitted the most recent report 
required by such subsection for 1997 or a subsequent year.
      Sec. 8118. None of the funds made available in this Act 
may be used to approve or license the sale of the F-22 advanced 
tactical fighter to any foreign government.
      Sec. 8119. None of the funds appropriated or otherwise 
made available by this Act may be made available for the United 
States Man and the Biosphere Program, or related projects.
      Sec. 8120. Up to $4,500,000 of funds available to the 
Department of Defense may be available for the payment of 
claims for loss and damage to personal property suffered as a 
direct result of the flooding in the Red River Basin during 
April and May, 1997 by members of the Armed Forces residing in 
the vicinity of Grand Forks Air Force Base, North Dakota, 
without regard to the provisions of section 3721(e) of title 
31, United States Code.
      Sec. 8121. Of the total amount appropriated under title 
II for the Navy, the Secretary of the Navy shall make 
$25,000,000 available for a program to demonstrate expanded use 
of multitechnology automated reader cards throughout the Navy 
and the Marine Corps, including demonstration of the use of the 
so-called ``smartship'' technology of the ship-to-shore work 
load/off load program.
      Sec. 8122. (a) Findings.--(1) The North Atlantic Treaty 
Organization, at the Madrid summit, decided to admit three new 
members, the Czech Republic, Poland and Hungary.
      (2) The President, on behalf of the United States 
endorsed and advocated the expansion of the North Atlantic 
Treaty Organization to include three additional members.
      (3) The Senate will consider the ratification of 
instruments to approve the admissions of new members to the 
North Atlantic Treaty Organization.
      (4) The United States has contributed more than 
$20,000,000,000 since 1952 for infrastructure and support of 
the Alliance.
      (5) In appropriations Acts considered by the Congress for 
fiscal year 1998, $449,000,000 has been requested by the 
President for expenditures in direct support of United States 
participation in the Alliance.
      (6) In appropriations Acts considered by the Congress for 
fiscal year 1998, $9,983,300,000 has been requested by the 
President in support of United States military expenditures in 
North Atlantic Treaty Organization countries.
      (b) Report to Congress.--The Secretary of Defense shall 
identify and report to the congressional defense committees not 
later than October 1, 1997--
            (1) the amounts necessary, by appropriation 
        account, for all anticipated costs to the United States 
        for the admission of the Czech Republic, Poland and 
        Hungary to the North Atlantic Treaty Organization for 
        the fiscal years 1998, 1999, 2000, 2001 and 2002; and
            (2) any new commitments or obligations entered into 
        or assumed by the United States in association with the 
        admission of new members to the Alliance, to include 
        the deployment of United States military personnel, the 
        provision of defense articles or equipment, training 
        activities and the modification and construction of 
        military facilities.
      Sec. 8123. (a) The Secretary of Defense may, on a case-
by-case basis, waive with respect to a foreign country each 
limitation on the procurement of defense items from foreign 
sources provided in law if the Secretary determines that the 
application of the limitation with respect to that country 
would invalidate cooperative programs entered into between the 
Department of Defense and the foreign country, or would 
invalidate reciprocal trade agreements for the procurement of 
defense items entered into under section 2531 of title 10, 
United States Code, and the country does not discriminate 
against the same or similar defense items produced in the 
United States for that country.
      (b) Subsection (a) applies with respect to--
            (1) contracts and subcontracts entered into on or 
        after the date of the enactment of this Act; and
            (2) options for the procurement of items that are 
        exercised after such date under contracts that are 
        entered into before such date if the option prices are 
        adjusted for any reason other than the application of a 
        waiver granted under subsection (a).
      (c) Subsection (a) does not apply to a limitation 
regarding construction of warships, ball and roller bearings, 
and clothing or textile materials as defined by section 11 
(chapters 50-65) of the Harmonized Tariff Schedule and products 
classified under headings 4010, 4202, 4203, 6401 through 6406, 
6505, 7019, and 9404.
      Sec. 8124. It is the sense of Congress that should the 
Senate ratify NATO enlargement, that the proportional cost of 
the United States share of the NATO common budget should not 
increase, and that if any NATO member does not pay its share, 
the United States shall not pay either.
      Sec. 8125. Congress finds that the Defense Base Closure 
and Realignment Commission directed the transfer of only 10 
electro-magnetic test environment systems from Eglin Air Force 
Base, Florida, to Nellis Air Force Base, Nevada.
      Sec. 8126. (a) Findings.--(1) The Department of Defense 
budget is insufficient to fulfill all the requirements on the 
unfunded priorities lists of the military services and defense 
agencies;
      (2) the documented printing expenses of the Department of 
Defense amount to several hundred million dollars per year, and 
a similar amount of undocumented printing expenses may be 
included in external defense contracts;
      (3) printing in two or more colors generally increases 
costs;
      (4) the Joint Committee on Printing of the Congress of 
the United States has established regulations intended to 
protect taxpayers from extravagant Government printing 
expenses;
      (5) the Government Printing and Binding Regulations 
published by the Joint Committee on Printing direct that ``. . 
. it is the responsibility of the head of any department, 
independent office or establishment of the Government to assure 
that all multicolor printing shall contribute demonstrable 
value toward achieving a greater fulfillment of the ultimate 
end-purpose of whatever printed item in which it is 
included.'';
      (6) the Department of Defense publishes a large number of 
brochures, calendars, and other products in which the use of 
multicolor printing does not appear to meet the demonstrably 
valuable contribution requirement of the Joint Committee on 
Printing, but instead appears to be used primarily for 
decorative effect; and
      (7) the Department of Defense could save resources for 
higher priority needs by reducing printing expenses.
      (b) Sense of the Senate.--Therefore, it is the sense of 
the Senate that--
            (1) the Secretary of Defense should ensure that the 
        printing costs of the Department of Defense and 
        military services are held to the lowest amount 
        possible;
            (2) the Department of Defense should strictly 
        comply with the Printing and Binding Regulations 
        published by the Joint Committee on Printing of the 
        Congress of the United States;
            (3) the Department of Defense budget submission for 
        fiscal year 1999 should reflect the savings that will 
        result from the stricter printing guidelines in 
        paragraphs (1) and (2).


                             (rescissions)


      Sec. 8127. Of the funds provided in title III of the 
Department of Defense Appropriations Act, 1996 (Public Law 104-
61), $62,000,000 are rescinded, and of the funds provided in 
title IV of the Department of Defense Appropriations Act, 1997 
(as contained in section 101(b) of Public Law 104-208), 
$38,000,000 are rescinded: Provided, That such rescissions 
shall not be made before July 1, 1998: Provided further, That 
not later than June 1, 1998, the Undersecretary of Defense 
(Comptroller) shall submit a report to the congressional 
defense committees listing the specific programs, projects and 
activities proposed for rescission subject to the provisions of 
this section.
      Sec. 8128. Section 303(e) of the 1997 Emergency 
Supplemental Appropriations Act for Recovery from Natural 
Disasters, and for Overseas Peacekeeping Efforts, Including 
Those in Bosnia (Public Law 105-18; 111 Stat. 168) is struck 
and the following is inserted in lieu thereof:
      ``(e) Availability of Funds.--The Secretary may use funds 
available in the Defense Working Capital Fund for the payment 
of the costs of utilities, maintenance and repair, and 
improvements entered into under the lease under this 
section.''.
      Sec. 8129. Subject to amounts appropriated under the 
heading ``Shipbuilding and Conversion, Navy'' in this Act for 
the New Attack Submarine Program, and notwithstanding any 
provisions of the National Defense Authorization Act for Fiscal 
Year 1996 and of the National Defense Authorization Act for 
Fiscal Year 1997 to the contrary, and notwithstanding section 
2304(k) of title 10, United States Code, and the policy set 
forth in paragraph (1) of that section, the Secretary of the 
Navy may enter into a contract during fiscal year 1998 for the 
necessary procurement of four submarines under the New Attack 
Submarine Program with one of the two shipbuilders which are 
party to the Team Agreement between Electric Boat Corporation 
and Newport News Shipbuilding and Dry Dock Company dated 
February 25, 1997, that was submitted to the Congress by the 
Secretary of the Navy on March 31, 1997, as the prime 
contractor on the condition such prime contractor enter into 
one or more subcontracts (under such prime contract) with the 
other shipbuilder which is a party to such Team Agreement as 
contemplated in such Team Agreement, with such contract 
providing for construction of the first submarine in fiscal 
year 1998 and for the advance construction and advance 
procurement of material for the second, third, and fourth 
submarines in fiscal year 1998: Provided, That such prime 
contract shall provide that if such contract is terminated, the 
United States shall not be liable for termination costs in 
excess of the total amount appropriated for the New Attack 
Submarine Program.
      Sec. 8130. In addition to the amounts provided elsewhere 
in this Act, $3,000,000 is hereby appropriated for ``Operations 
and Maintenance, Defense-Wide'', and shall be made available 
only for the establishment of the ``21st Century National 
Security Study Group'' (hereinafter in this section referred to 
as the ``Study Group''): Provided, That these funds may be 
obligated only upon the completion of a memorandum of agreement 
between the Secretary of Defense (after consultation with the 
President), the Speaker of the House of Representatives, the 
Minority Leader of the House of Representatives, the Majority 
Leader of the Senate, and the Minority Leader of the Senate: 
Provided further, That this memorandum of agreement will set 
forth the scope of the Group's work, as well as its charter, 
composition, authorities, lifespan, and products to be 
generated: Provided further, That this memorandum of agreement 
shall be completed not later than December 15, 1997.
      Sec. 8131. (a) Panel To Review Long Range Air Power.--(1) 
There is hereby established an independent panel to evaluate 
the adequacy of current planning for United States long-range 
air power and the requirement for continued low-rate production 
of B-2 stealth bombers.
      (2) The panel shall be composed of nine members appointed 
as follows:
            (A) Two members shall be named by the President;
            (B) Two members shall be named by the Speaker of 
        the House of Representatives;
            (C) One member shall be named by the minority 
        leader of the House of Representatives;
            (D) Two members shall be named by the majority 
        leader of the Senate;
            (E) One member shall be named by the minority 
        leader of the Senate; and
            (F) One member, will serve as chairman of the 
        panel, shall be named by the President.
      (b) Functions of Panel.--(1) Not later than March 1, 
1998, the panel shall submit to the President and Congress a 
report containing its conclusions and recommendations 
concerning the appropriate B-2 bomber force and specifically 
stating its recommendation on whether additional funds for the 
B-2 should be used for continued low-rate production of the B-2 
or for upgrades to improve deployability, survivability and 
maintainability.
      (2) As part of its evaluation and review, the panel shall 
consider, but not be limited to, the following:
            (A) Scenarios involving no warning time and little 
        warning time from potential adversaries;
            (B) The make-up of the current bomber fleet and 
        expected attrition to that fleet over the next fifteen 
        years;
            (C) The potential effect of additional B-2 bombers 
        on deterrence;
            (D) The potential effect of additional B-2 bombers 
        in the ``halt phase'' of a conflict;
            (E) The potential of a biological or chemical 
        ``lock-out'' of tactical U.S. assets by future 
        adversaries and the effect of additional B-2 bombers 
        toward mitigating such a tactic;
            (F) Trade-offs between additional B-2 bombers and 
        other programmed DOD assets in meeting the scenarios 
        described in subsections (b)(2)(A) through (b)(2)(E) 
        above;
            (G) The desirability of an increased rate of 
        purchase of precision-guided munitions for aircraft in 
        the existing B-2 fleet;
            (H) The desirability of improving the low 
        observable characteristics of the existing B-2 fleet; 
        and
            (I) The affordability of additional B-2 bombers in 
        the context of projected levels of future defense 
        funding.
      (c) Panel Administration.--(1) The members of the panel 
shall be allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies 
under subchapter I of chapter 57 of title 5, United States 
Code, while away from their homes or regular places of business 
in the performance of services for the panel.
      (2) Upon the request of the chairman of the panel, the 
Secretary of Defense may detail to the panel, on a 
nonreimbursable basis, personnel of the Department of Defense 
to assist the panel in carrying out its duties. The Secretary 
of Defense shall furnish to the panel such administrative and 
support services as may be requested by the chairman of the 
panel and shall ensure that all appropriate actions are taken 
to preserve the options of thePresident until the panel submits 
its report under subsection (b)(1).
    (d) Funding.--The Secretary of Defense shall, upon the 
request of the panel, make available to the panel such amounts 
as the panel may require to carry out its duties under this 
section.
    (e) Termination of the Panel.--The panel shall terminate 30 
days after the date on which it submits its report under 
subsection (b)(1).
    Sec. 8132. None of the funds in this Act may be made 
available for the deployment of United States armed forces in 
the Republic of Bosnia and Herzegovina after June 30, 1998, 
unless the President, after consultation with the bipartisan 
leadership of the Senate and the House of Representatives, 
transmits to the Congress not later than May 15, 1998 a 
certification that the continued presence of United States 
armed forces is required in order to meet the national security 
interests of the United States: Provided, That such 
certification shall specify the following aspects of any 
deployment beyond June 30, 1998--
            (1) The reasons why such deployment is in the 
        national interest;
            (2) The number of United States military personnel 
        to be deployed in and around the Republic of Bosnia and 
        Herzegovina and the former Yugoslavia;
            (3) The expected duration of any such deployment;
            (4) The mission and objectives of United States 
        military forces deployed in and around the Republic of 
        Bosnia and Herzegovina and the former Yugoslavia;
            (5) The exit strategy for United States forces 
        engaged in such deployment;
            (6) The costs associated with any deployment beyond 
        June 30, 1998; and
            (7) The impact of such deployment on the morale, 
        retention, and effectiveness of U.S. forces:
Provided further, That, concurrent with said certification, the 
President shall submit a supplemental appropriations request 
for such amounts as are necessary for any continued deployment 
beyond June 30, 1998: Provided further, That nothing in this 
section shall be deemed to restrict the authority of the 
President under the Constitution to protect the lives of United 
States citizens.
    This Act may be cited as the ``Department of Defense 
Appropriations Act, 1998''.
    And the Senate agree to the same.
                                   Bill Young,
                                   Joseph M. McDade,
                                   Jerry Lewis,
                                   Joe Skeen,
                                   David L. Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Ernest Istook,
                                   Randy ``Duke'' Cunningham,
                                   Bob Livingston,
                                   John P. Murtha,
                                   Norm Dicks
                                           (except on amendment dealing 
                                               with the B-2 bomber.),
                                   W.G. Bill Hefner,
                                   Martin Olav Sabo,
                                   Julian C. Dixon,
                                   Peter J. Visclosky,
                                 Managers on the Part of the House.

                                   Ted Stevens,
                                   Thad Cochran,
                                   Arlen Specter,
                                   Pete Domenici,
                                   Christopher S. Bond,
                                   Mitch McConnell,
                                   Richard Shelby,
                                   Judd Gregg,
                                   Kay Bailey Hutchison,
                                   Daniel K. Inouye,
                                   Robert Byrd,
                                   Patrick J. Leahy,
                                   Dale Bumpers,
                                   Frank R. Lautenberg,
                                   Byron L. Dorgan,
                                Managers on the Part of the Senate.
                      JOINT EXPLANATORY STATEMENT

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 2266), making 
appropriations for the Department of Defense for the fiscal 
year ending September 30, 1998, and for other purposes, submit 
the following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report.
      The conference agreement on the Department of Defense 
Appropriations Act, 1998, incorporates some of the provisions 
of both the House and Senate versions of the bill. The language 
and allocations set forth in House Report 105-206 and Senate 
Report 105-45 should be complied with unless specifically 
addressed in the accompanying bill and statement of the 
managers to the contrary.
      Senate Amendment: The Senate deleted the entire House 
bill after the enacting clause and inserted the Senate bill. 
The conference agreement includes a revised bill.

              Definition of Program, Project, and Activity

      The conferees agree that for the purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177) as amended by the Balanced Budget and Emergency Deficit 
Control Reaffirmation Act of 1987 (Public Law 100-119) and by 
the Budget Enforcement Act of 1990 (Public Law 101-508), the 
term program, project, and activity for appropriations 
contained in this Act shall be defined as the most specific 
level of budget items identified in the Department of Defense 
Appropriations Act, 1998, the accompanying House and Senate 
Committee reports, the conference report and accompanying joint 
explanatory statement of the managers of the Committee of 
Conference, the related classified annexes and reports, and the 
P-1 and R-1 budget justification documents as subsequently 
modified by Congressional action. The following exception to 
the above definition shall apply:
      For the Military Personnel and the Operation and 
Maintenance accounts, the term ``program, project, and 
activity'' is defined as the appropriations accounts contained 
in the Department of Defense Appropriations Act. At the time 
the President submits his budget for fiscal year 1999, the 
conferees direct the Department of Defense to transmit to the 
congressional defense committees budget justification documents 
to be known as the ``M-1'' and ``O-1'' which shall identify, at 
the budget activity, activity group, and subactivity group 
level, the amounts requested by the President to be 
appropriated to the Department of Defense for operation and 
maintenance in any budget request, or amended budget request, 
for fiscal year 1999.

                      TITLE I--MILITARY PERSONNEL

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Active personnel:                                                                                               
    Army........................................     $20,492,257     $20,445,381     $20,426,457     $20,452,057
    Navy........................................      16,501,118      16,504,911      16,508,218      16,493,518
    Marine Corps................................       6,147,599       6,141,635       6,148,899       6,137,899
    Air Force...................................      17,145,556      17,044,874      17,206,056      17,102,120
Reserve personnel:                                                                                              
    Army........................................       2,024,446       2,045,615       2,037,046       2,032,046
    Navy........................................       1,375,401       1,377,249       1,374,901       1,376,601
    Marine Corps................................         381,070         391,953         384,770         391,770
    Air Force...................................         814,936         814,772         815,745         815,915
National Guard Personnel:                                                                                       
    Army........................................       3,200,667       3,245,387       3,446,867       3,333,867
    Air Force...................................       1,319,712       1,331,417       1,334,712       1,334,712
                                                 ---------------------------------------------------------------
        Total, Military Personnel...............      69,411,762      69,343,194      69,683,671      69,470,505
----------------------------------------------------------------------------------------------------------------

                        personnel understrength

      The conferees recommend a total reduction of $303,200,000 
to the services military personnel accounts due to lower than 
estimated end strengths during fiscal year 1997. The conferees 
understand that the Services will begin fiscal year 1998 with 
fewer personnel on-board than originally budgeted, therefore, 
the requirements for pays and allowances of personnel are 
overstated. A summary of the understrength reductions is shown 
in the table below:

                        [In thousands of dollars]

Army....................................................       -$240,000
Navy....................................................         -10,000
Marine Corps............................................          -3,600
Air Force...............................................         -44,600
Army Reserve............................................          -5,000
                    --------------------------------------------------------
                    ____________________________________________________
  Total.................................................        -303,200

                        force structure changes

      The fiscal year 1998 budget request included reductions 
in the size of Primary Aircraft Authorized (PAA) levels for Air 
Force B-52's, and Air Force Reserve and Air National Guard C-
130's units. The conferees recommend restoring these aircraft 
levels during fiscal year 1998. In addition, the conferees 
recommend adding funds to support the Air Force Reserve's WC-
130 Weather Reconnaissance mission, and Navy Reserve LAMPS 
squadrons. In total, the conferees recommend an additional 
$11,779,000 in the military personnel accounts and $64,373,000 
in the services Operations and Maintenance accounts for 
personnel and support costs of these units. A summary of the 
funds provided follows:

----------------------------------------------------------------------------------------------------------------
                                                     Military                                                   
                                                     personnel          O&M         Procurement        Total    
----------------------------------------------------------------------------------------------------------------
Air Force, B-52's...............................           4,500          42,400          10,400          57,300
Air Force Reserve, C-130's......................           1,409           6,780  ..............           8,189
Air National Guard C-130's......................           4,000          13,063  ..............          17,063
Air Force Reserve, WC-130 Weather Reconnaissance             170             830  ..............           1,000
Navy/Navy Reserve, Magic Lantern................           1,700           1,300  ..............           3,000
                                                 ---------------------------------------------------------------
      Total.....................................          11,779          64,373          10,400          86,552
----------------------------------------------------------------------------------------------------------------

                        foreign currency savings

      The budget request reduces the active duty military 
personnel accounts by $62,000,000 for foreign currency savings 
due to favorable fluctuations in overseas exchange rates. The 
conferees understand that there are additional savings and 
recommend a further reduction of $16,000,000 to the personnel 
accounts, for a total foreign currency reduction of 
$78,000,000.

                     contingency operations funding

      The fiscal year 1998 budget request recommended 
$213,600,000 for pay and allowances of military personnel in 
the ``Overseas Contingency Operations Transfer Fund'', for cost 
of operations in Bosnia during fiscal year 1998. The conferees 
agree to the realignment of these funds into the Services 
military personnel accounts.

                  temporary early retirement authority

      The conferees recommend a total of $126,902,000 for Army 
and Air Force Temporary Early Retirement Authority. Of this 
amount, the conferees agree to restore $36,902,000, the budget 
request, for Army separation payments. However, due to enlisted 
understrength projections, the conferees recommend $90,000,000, 
a reduction of $57,836,000 from the budget request, for Air 
Force separation payments.

                          Active End Strength

                           [Fiscal year 1998]                           
------------------------------------------------------------------------
                                                              Conference
                                        Budget    Conference  vs. budget
------------------------------------------------------------------------
Army................................     495,000     495,000  ..........
Navy................................     390,802     390,802  ..........
Marine Corps........................     174,000     174,000  ..........
Air Force...........................     371,577     371,699        +122
                                     -----------------------------------
      Total, Active Personnel.......   1,431,379   1,431,501        +122
------------------------------------------------------------------------

                        Military Personnel, Army

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

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                         House      Senate    Conference
------------------------------------------------------------------------
Basic Allowance for Quarters........      10,326  ..........  ..........
Foreign Currency Savings............      -4,000  ..........      -9,000
Temporary Early Retirement Program..     -36,902  ..........  ..........
Service Academies Foreign Students..      -1,000  ..........      -1,000
Personnel Understrength Savings.....    -183,100  ..........    -240,000
Family Separation Allowance.........       9,600  ..........       9,600
Contingency Operations Transfer--                                       
 Bosnia.............................     158,200     158,200     158,200
End Strength Reduction..............  ..........    -266,000  ..........
Additional Recruiting Support.......  ..........      42,000      42,000
                                     -----------------------------------
    Total, Military Personnel, Army.     -46,876     -65,800     -40,200
------------------------------------------------------------------------

                        Military Personnel, Navy

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

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                         House      Senate    Conference
------------------------------------------------------------------------
Basic Allowance for Quarters........       9,393  ..........  ..........
Foreign Currency Savings............      -1,000  ..........      -3,000
Service Academies Foreign Students..      -1,000  ..........      -1,000
Personnel Understrength Savings.....     -10,000  ..........     -10,000
Unemployment Compensation Savings...     -10,000  ..........     -10,000
Family Separation Allowance.........       9,300  ..........       9,300
Contingency Operations Transfer-                                        
 Bosnia.............................       7,100       7,100       7,100
                                     -----------------------------------
      Total, Military Personnel,                                        
       Navy.........................       3,793       7,100      -7,600
------------------------------------------------------------------------

                    Military Personnel, Marine Corps

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

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                         House      Senate    Conference
------------------------------------------------------------------------
Basic Allowance for Quarters........       2,736  ..........  ..........
Foreign Currency Savings............  ..........  ..........      -1,000
Personnel Understrength Savings.....      -3,600  ..........      -3,600
Family Separation Allowance.........      -3,600  ..........      -3,600
Unemployment Compensation Savings...     -10,000  ..........     -10,000
Contingency Operations Transfer-                                        
 Bosnia.............................       1,300       1,300       1,300
                                     -----------------------------------
      Total, Military Personnel,                                        
       Marine Corps.................      -5,964       1,300      -9,700
------------------------------------------------------------------------

                     Military Personnel, Air Force

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

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                         House      Senate    Conference
------------------------------------------------------------------------
Basic Allowance for Quarters........       8,654  ..........  ..........
Temporary Early Retirement Program..    -147,836  ..........     -57,836
Foreign Currency Savings............      -1,000  ..........      -3,000
Service Academies Foreign Students..      -1,000  ..........      -1,000
Personnel Understrength Savings.....     -18,000  ..........     -44,600
Family Separation Allowance.........       2,500  ..........       2,500
Contingency Operations Transfer-                                        
 Bosnia.............................      47,000      47,000      47,000
B-52 Force Structure................  ..........       4,500       4,500
                                     -----------------------------------
      Total, Military Personnel, Air                                    
       Force........................    -109,682      51,500     -52,436
------------------------------------------------------------------------

                   National Guard and Reserve Forces

      The conferees agree to provide $9,284,911,000 in Reserve 
personnel appropriations, $9,310,912,000 in Operation and 
maintenance appropriations, and $653,000,000 in the National 
Guard and Reserve Equipment appropriation. These funds support 
a Selected Reserve strength of 892,597 as shown below.

                           Reserve Strengths

------------------------------------------------------------------------
                                              Fiscal year 1998          
                                  --------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
  Selected Reserve:                                                     
    Army Reserve.................      208,000      208,000  ...........
    Navy Reserve.................       94,294       94,326          +32
    Marine Corps Reserve.........       42,000       42,000  ...........
    Air Force Reserve............       73,431       73,598         +167
    Army National Guard..........      366,516      366,516  ...........
    Air National Guard...........      107,377      108,157         +780
                                  --------------------------------------
        Total....................      891,618      892,597         +979
                                  ======================================
  AGR/TARS:                                                             
    Army Reserve.................       11,500       11,500  ...........
    Navy Reserve.................       16,136       16,168          +32
    Marine Corps Reserve.........        2,559        2,559  ...........
    Air Force Reserve............          963          963  ...........
    Army National Guard..........       22,310       22,310  ...........
    Air National Guard...........       10,616       10,671          +55
                                  --------------------------------------
        Total....................       64,084       64,171          +87
                                  ======================================
  Technicians:                                                          
    Army Reserve.................        6,501        6,501  ...........
    Air Force Reserve............        9,622        9,659          +37
    Army National Guard..........       25,250       25,250  ...........
    Air National Guard...........       22,968       23,068         +100
                                  --------------------------------------
        Total....................       64,341       64,478         +137
                                  --------------------------------------
------------------------------------------------------------------------

           Retention of Military Leave for Federal Employees

      The conferees reject the budget request proposal to 
eliminate military leave for those members of the Reserve 
components who are Federal employees.

             Reserve Mobilization Income Insurance program

      The conferees include language in section 8005 of the 
general provisions which provides the Department of Defense 
reprogramming authority to meet its financial obligations with 
respect to the termination of this program in the absence of a 
supplemental appropriation.

                        Reserve Personnel, Army

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

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Unit Readiness/Training..........        8,000  ...........  ...........
Basic Allowance for Quarters.....          569  ...........  ...........
Reserve Duty Drill Pay...........       20,400       20,400       20,400
Health Scholarship Stipend.......       -7,800       -7,800       -7,800
Personnel Understrength Savings..  ...........  ...........       -5,000
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Army......................       21,169       12,600        7,600
------------------------------------------------------------------------

                        Reserve Personnel, Navy

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

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Basic Allowance for Quarters.....          648  ...........  ...........
Reserve Duty Drill Pay...........        8,500        8,500        8,500
Health Scholarship Stipend.......       -9,000       -9,000       -9,000
Magic Lantern Aircraft...........        1,700  ...........        1,700
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Navy......................        1,848         -500        1,200
------------------------------------------------------------------------

                          navy reserve forces

      The conferees concur in the House direction regarding 
Navy Reserve Forces.

                    Reserve Personnel, Marine Corps

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

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                            House    Senate   Conference
------------------------------------------------------------------------
Annual Training/School Tours............     7,000  ........      7,000 
Basic Allowance for Quarters............       183  ........  ..........
Reserve Duty Drill Pay..................     3,700     3,700      3,700 
                                         -------------------------------
      Total, Reserve Personnel, Marine                                  
       Corps............................    10,883     3,700     10,700 
------------------------------------------------------------------------

                      Reserve Personnel, Air Force

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

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                            House    Senate   Conference
------------------------------------------------------------------------
Basic Allowance for Quarters............       266  ........  ..........
Reserve Duty Drill Pay..................     8,200     8,200      8,200 
Health Scholarship Stipend..............    -8,800    -8,800     -8,800 
WC-130 Weather Reconnaissance...........       170  ........        170 
C-130 Force Structure...................  ........     1,409      1,409 
                                         -------------------------------
      Total, Reserve Personnel, Air                                     
       Force............................      -164       809        979 
------------------------------------------------------------------------

                     National Guard Personnel, Army

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

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                            House    Senate   Conference
------------------------------------------------------------------------
School/Special Training.................    10,000   115,000     40,000 
Basic Allowance for Quarters............     1,520  ........  ..........
Reserve Duty Drill Pay..................    33,200    33,200     33,200 
Annual Training.........................  ........    33,000     15,000 
Inactive Duty Training..................  ........    20,000     10,000 
Initial Entry Training..................  ........    35,000     30,000 
Bonus/Transition Benefits...............  ........    10,000      5,000 
                                         -------------------------------
      Total, National Guard Personnel,                                  
       Army.............................    44,720   246,200    133,200 
------------------------------------------------------------------------

                  National Guard Personnel, Air Force

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

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                            House    Senate   Conference
------------------------------------------------------------------------
Basic Allowance for Quarters............       705  ........  ..........
Reserve Duty Drill Pay..................    11,000    11,000     11,000 
C-130 Force Structure...................  ........     4,000      4,000 
                                         -------------------------------
      Total, National Guard Personnel,                                  
       Air Force........................    11,705    15,000     15,000 
------------------------------------------------------------------------

                  TITLE II--OPERATION AND MAINTENANCE

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
   500O&M. ARMY                                    17,049,484      17,078,218      16,913,473      16,754,306   
   50100  TRANSFER--STOCKPILE                         (50,000)        (50,000)        (50,000)        (50,000)  
   501O&M. NAVY                                    21,508,130      21,779,365      21,576,419      21,617,766   
   50200  TRANSFER--STOCKPILE                         (50,000)        (50,000)        (50,000)        (50,000)  
   502O&M. MARINE CORPS                             2,301,345       2,598,032       2,328,535       2,372,635   
   503O&M. AIR FORCE                               18,817,785      18,740,167      18,592,385      18,492,883   
   50350  TRANSFER--STOCKPILE                         (50,000)        (50,000)        (50,000)        (50,000)  
   504O&M. DEFENSEWIDE                             10,390,938      10,053,956      10,399,638      10,639,740   
   505O&M. ARMY RESERVE                             1,192,891       1,207,891       1,212,891       1,207,891   
   505O&M. NAVY RESERVE                               834,711         924,711         834,211         921,711   
   506O&M. MARINE CORPS RESERVE                       110,366         119,266         110,366         116,366   
   506O&M. AIR FORCE RESERVE                        1,624,420       1,635,250       1,631,200       1,632,030   
   507O&M. ARMY NATIONAL GUARD                      2,258,932       2,313,632       2,449,932       2,419,632   
   507O&M. AIR NATIONAL GUARD                       2,991,219       2,995,719       3,010,282       3,013,282   
----------------------------------------------------------------------------------------------------------------


                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
   507OVERSEAS CONTINGENCY OPERATIONS TRANSFER       1,467,500       1,855,400       1,889,000       1,884,000  
       FUND                                                                                                     
   508UNITED STATES COURT OF APPEALS FOR THE             6,952           6,952           6,952           6,952  
       ARMED FORCES                                                                                             
   508ENVIRONMENTAL RESTORATION, ARMY                  377,337         377,337         375,337         375,337  
   509ENVIRONMENTAL RESTORATION, NAVY                  277,500         277,500         275,500         275,500  
   509ENVIRONMENTAL RESTORATION, AIR FORCE             378,900         378,900         376,900         376,900  
   510ENVIRONMENTAL RESTORATION, DEFENSE-WIDE           27,900          27,900          26,900          26,900  
   510ENVIRONMENTAL RESTORATION, FORMERLY USED         202,300         202,300         242,300         242,300  
       DEFENSE SITES                                                                                            
   512OVERSEAS HUMANITARIAN, DISASTER, AND              80,130          55,557          40,130          47,130  
       CIVIC AID                                                                                                
   513FORMER SOVIET UNION THREAT REDUCTION             382,200         284,700         382,200         382,200  
   514QUALITY OF LIFE ENHANCEMENTS, DEFENSE     ..............  ..............         100,000         360,000  
     -----------------------------------------------------------------------------------------------------------
   51600    GRAND TOTAL, O&M                        82,280,940      82,912,753      82,774,551      82,895,461  
----------------------------------------------------------------------------------------------------------------

                       real property maintenance

      The conferees are concerned about the extensive backlog 
of real property maintenance in the Department of Defense and 
the effect this has on the morale of U.S. service personnel. 
Accordingly, the conferees agree to provide a total of 
$724,620,000, of which $360,000,000 is provided in the Quality 
of Life Enhancements, Defense account. The conferees also agree 
that, of the funds for real property maintenance provided 
within Operation and Maintenance, Army that $15,000,000 shall 
be used for demolition requirements previously identified by 
the Department of the Army. In the case of real property 
maintenance funding provided directly to the services' 
Operation and maintenance accounts, the conferees agree the 
Department of Defense should provide written notification to 
the congressional defense committees for transfers of greater 
than $15,000,000 to or from the total real property maintenance 
amount provided to each service.

            operation and maintenance budget execution data

      The conferees support the position expressed in the House 
report accompanying the Defense Appropriations bill for fiscal 
year 1998 requiring the Department of Defense to provide the 
congressional defense committees with quarterly budget 
execution data. Such data should be provided not later than 
forty-five days past the close of each quarter of the fiscal 
year, and should provide data for each O-1 budget activity, 
activity group, and subactivity for each of the active, 
defense-wide, reserve and national guard components. These 
reports should also include: the budget request and actual 
obligations for each O-1 budget activity, activity group, and 
subactivity; the DoD distribution of any unallocated 
congressional adjustments to the budget request to each budget 
activity, activity group, and subactivity group; and, 
adjustments to each budget activity, activity group and 
subactivity group resulting from DoD reprogramming actions.

                operation and maintenance reprogramming

      The conferees agree that proposed transfers of funds 
between O-1 budget activities in excess of $15,000,000 are 
subject to normal, prior approval reprogramming procedures.
      The Department should also follow prior approval 
reprogramming procedures for the cumulative value of transfers 
in excess of $15,000,000 into or out of the following O-1 
subactivity groups.
Operation and maintenance, Army
      Depot maintenance.
Operation and maintenance, Navy
      Aircraft depot maintenance, ship depot maintenance, and 
Intermediate maintenance.
Operation and maintenance, Marine Corps
      Depot maintenance.
      The conferees further direct the Secretary of the Air 
Force to identify in separate budget subactivities depot 
maintenance for budget activity one and budget activity two in 
the fiscal year 1999 budget request and subsequent budget 
requests. In addition, due to continuing concerns about force 
readiness and the apparent diversion of Operation and 
maintenance funds, the conferees agree that the Department 
should provide written notification to the congressional 
defense committees for the cumulative value of any and all 
transfers in excess of $15,000,000 from or into the following 
budget activities and subactivity group categories:
Operation and maintenance, Army
      Land Forces: Divisions, Corps combat forces, Corps 
support forces, Echelon above corps forces, Land forces 
operations support; Land Forces Readiness: Land forces depot 
maintenance.
Operation and maintenance, Navy
      Air Operations: Mission and other flight operations; 
Fleet air training, Aircraft depot maintenance; Ship 
Operations: Mission and other ship operations, Ship operational 
support and training, Intermediate maintenance, Ship depot 
maintenance.
Operation and maintenance, Marine Corps
      Expeditionary Forces: Operational forces, depot 
maintenance.
Operation and maintenance, Air Force
      Air Operations: Primary combat forces, Primary combat 
weapons, Air operations training; Mobility Operations: Airlift 
operations, Payments to the transportation business area.

            Defense Computer Investigations Training Program

                         computer forensics lab

      The conferees support the Department of Defense efforts 
to improve information security and investigative capabilities 
related to computer crimes. The conferees urge the Department 
of Defense to allocate $8,500,000 of the funds available in 
Operation and Maintenance, Navy and $2,700,000 available in 
Operation and Maintenance, Air Force to improve capabilities in 
this area. Further, the conferees direct that the Department of 
Defense fully fund these activities in the fiscal year 1999 
budget request.

                  chemical-biological defense funding

      The conferees recommend that the Department of Defense 
use existing facilities with explosives ranges capable of 
handling large blasts and existing instructional and research 
programs in response to blast, radiological, biological and 
chemical threats.

                           distance education

      The conferees recognize that in recent nationwide 
surveys, one out of three homeless men identifies himself as a 
military veteran. The conferees further recognize that a 
significant percentage of the thousands of men and women 
leaving the armed forces each year are doing so without having 
earned either an associates or bachelors degree. This lack of 
formal education credentials may be making it more difficult 
for veterans to secure good jobs following their military 
service. Therefore, the conferees encourage the Department to 
explore distance education initiatives that could assist active 
duty personnel and their family members, DoD civilian employees 
and veterans in pursuing college-level degrees. These distance 
education degree-granting initiatives must be portable so that 
they can be pursued regardless of changes of duty station.

                environmentally safe fuel storage tanks

      The conferees support Department of Defense efforts to 
develop and install environmentally safe fuel storage tanks. 
Accordingly, the conferees direct that $2,000,000 of the funds 
in Operation and Maintenance, Marine Corps, and $2,000,000 of 
the funds made available in Operation and Maintenance, Air 
Force be used to support such efforts.

                        Northern Mariana Islands

      The conferees are aware of communications between the 
Government of the Northern Mariana Islands and the Department 
of Defense concerning future development of certain lands on 
the island of Tinian in the Commonwealth of the Northern 
Mariana Islands under lease to the United States. Accordingly, 
the conferees believe the Secretary of Defense should consider 
a development plan approved by the Government of the 
Commonwealth of the Northern Mariana Islands to be a 
``Permitted Use'' within the meaning of Article 1, Subsection D 
of the Leaseback and Disposal Agreement between the 
Commonwealth of the Northern Mariana Islands and the United 
States of America dated August 4, 1994, provided that (1) such 
a plan has been approved by the Government of the Commonwealth 
of the Northern Mariana Islands, and (2) the plan does not 
preclude use of the land for urgent military purposes.

                    Operation and Maintenance, Army

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                            Budget             House              Senate           Conference   
----------------------------------------------------------------------------------------------------------------
     OPERATION AND MAINTENANCE,                                                                                 
      ARMY                                                                                                      
     BUDGET ACTIVITY 1: OPERATING                                                                               
      FORCES                                                                                                    
     LAND FORCES                                                                                                
     DIVISIONS                             1,221,794          1,267,007          1,161,494          1,173,494   
     CORPS COMBAT FORCES                     350,942            350,942            327,242            332,942   
     CORPS SUPPORT FORCES                    323,190            323,190            323,190            323,190   
     ECHELON ABOVE CORPS FORCES              440,542            440,542            440,542            440,542   
     LAND FORCES OPERATIONS                  658,067            658,067            658,067            658,067   
      SUPPORT                                                                                                   
     LAND FORCES READINESS                                                                                      
     FORCE READINESS OPERATIONS              898,356            898,356            898,356            898,356   
      SUPPORT                                                                                                   
     LAND FORCES SYSTEMS READINESS           346,651            346,651            346,651            346,651   
     LAND FORCES DEPOT MAINTENANCE           637,044            806,744            701,044            780,244   
     LAND FORCES READINESS SUPPORT                                                                              
     BASE SUPPORT                          2,417,712          2,441,712          2,417,712          2,440,712   
     MAINTENANCE OF REAL PROPERTY            693,328            693,328            743,328            693,328   
     MANAGEMENT AND OPERATIONAL              130,012            130,012            131,212            131,212   
      HEADQUARTERS                                                                                              
     UNIFIED COMMANDS                         70,620             70,620             63,620             52,620   
     MISCELLANEOUS ACTIVITIES                179,864            185,264            179,864            179,864   
     CLASSIFIED PROGRAMS,           .................  .................             1,800   .................  
      UNDISTRIBUTED                                                                                             
                                   -----------------------------------------------------------------------------
    1045   TOTAL, BUDGET ACTIVITY          8,368,122          8,612,435          8,394,122          8,451,222   
            1                                                                                                   
                                   =============================================================================
    1BUDGET ACTIVITY 2:                                                                                         
      MOBILIZATION                                                                                              
    1MOBILITY OPERATIONS                                                                                        
    1STRATEGIC MOBILIZATION                  317,241            317,241            317,241            317,241   
    1WAR RESERVE ACTIVITIES                  171,100            171,100            171,100            171,100   
    1INDUSTRIAL PREPAREDNESS                  78,103             59,099             78,103             59,099   
                                   -----------------------------------------------------------------------------
    1350   TOTAL, BUDGET ACTIVITY            566,444            547,440            566,444            547,440   
            2                                                                                                   
                                   =============================================================================
    1BUDGET ACTIVITY 3: TRAINING                                                                                
      AND RECRUITING                                                                                            
    1ACCESSION TRAINING                                                                                         
    1OFFICER ACQUISITION                      63,992             62,592             63,992             62,592   
    1RECRUIT TRAINING                         12,620             12,620             12,620             12,620   
    1ONE STATION UNIT TRAINING                14,723             14,723             14,723             14,723   
    1RESERVE OFFICER TRAINING                113,128            113,128            113,578            113,578   
      CORPS (ROTC)                                                                                              
    1BASE SUPPORT (ACADEMY ONLY)              72,470             72,470             72,470             72,470   
    1MAINTENANCE OF REAL PROPERTY             28,123             28,123             28,123             28,123   
      (ACADEMY ONLY)                                                                                            
    1BASIC SKILL/ADVANCE TRAINING                                                                               
    1SPECIALIZED SKILL TRAINING              217,202            217,202            217,202            217,202   
    1FLIGHT TRAINING                         213,906            213,906            227,906            224,906   
    1PROFESSIONAL DEVELOPMENT                 69,594             69,594             69,594             69,594   
      EDUCATION                                                                                                 
    2TRAINING SUPPORT                        484,484            484,484            482,484            479,484   
    2BASE SUPPORT (OTHER TRAINING)           897,433            897,433            897,433            897,433   
    2MAINTENANCE OF REAL PROPERTY            321,089            321,089            350,089            321,089   
      (OTHER TRAINING)                                                                                          
    2RECRUITING/OTHER TRAINING                                                                                  
    2RECRUITING AND ADVERTISING              222,718            229,718            241,718            235,718   
    2EXAMINING                                75,922             75,922             75,922             75,922   
    2OFF-DUTY AND VOLUNTARY                   94,364             94,364             94,364             94,364   
      EDUCATION                                                                                                 
    2CIVILIAN EDUCATION AND                   81,481             78,629             81,481             81,481   
      TRAINING                                                                                                  
    2JUNIOR ROTC                              73,439             74,189             73,439             74,189   
    2BASE SUPPORT (RECRUITING                163,010            163,010            163,010            163,010   
      LEASES)                                                                                                   
                                   -----------------------------------------------------------------------------
    2500   TOTAL, BUDGET ACTIVITY          3,219,698          3,223,196          3,280,148          3,238,498   
            3                                                                                                   
                                   =============================================================================
    2BUDGET ACTIVITY 4: ADMIN &                                                                                 
      SERVICEWIDE ACTIVITIES                                                                                    
    2SECURITY PROGRAMS                                                                                          
    2SECURITY PROGRAMS                       366,085            366,085            366,085            366,085   
    2LOGISTICS OPERATIONS                                                                                       
    2SERVICEWIDE TRANSPORTATION              531,326            531,326            531,326            531,326   
    2CENTRAL SUPPLY ACTIVITIES               405,371            405,371            405,371            405,371   
    2LOGISTIC SUPPORT ACTIVITIES             253,138            286,338            275,038            289,138   
    2AMMUNITION MANAGEMENT                   369,407            369,407            369,407            369,407   
    2SERVICEWIDE SUPPORT                                                                                        
    3ADMINISTRATION                          294,972            246,971            294,972            246,372   
    3SERVICEWIDE COMMUNICATIONS              620,825            620,825            632,925            626,825   
    3MANPOWER MANAGEMENT                     152,437            152,437            152,437            152,437   
    3OTHER PERSONNEL SUPPORT                 155,307            155,307            155,307            155,307   
    3OTHER SERVICE SUPPORT                   593,446            595,446            529,485            531,485   
    3ARMY CLAIMS ACTIVITIES                  151,092            151,092            151,092            151,092   
    3REAL ESTATE MANAGEMENT                   63,526             63,526             63,526             63,526   
    3BASE SUPPORT                            667,779            624,279            667,779            623,779   
    3MAINTENANCE OF REAL PROPERTY            131,528            131,528            145,028            135,028   
    3SUPPORT OF OTHER NATIONS                                                                                   
    3INTERNATIONAL MILITARY                  270,413            270,413            255,413            255,413   
      HEADQUARTERS                                                                                              
    3MISC SUPPORT OF OTHER NATIONS            34,568             34,568             34,568             34,568   
                                   -----------------------------------------------------------------------------
    3700   TOTAL, BUDGET ACTIVITY          5,061,220          5,004,919          5,029,759          4,937,159   
            4                                                                                                   
                                   =============================================================================
    3CLASSIFIED PROGRAMS            .................            -6,895   .................            -6,895   
      UNDISTRIBUTED                                                                                             
    3CIVILIAN PERSONNEL             .................           -33,300           -131,000            -96,400   
      UNDERSTRENGTH                                                                                             
    3GENERAL REDUCTION, NATIONAL             -50,000            -50,000            -50,000            -50,000   
      DEFENSE STOCKPILE FUND                                                                                    
    3FOREIGN CURRENCY FLUCTUATION/          -116,000           -135,000           -135,000           -167,000   
      BUDGET AMEND                                                                                              
    3INFORMATION RESOURCE           .................           -25,000   .................           -25,000   
      MANAGEMENT                                                                                                
    3REAL PROPERTY MAINTENANCE      .................           232,000   .................            98,812   
    3ECONOMIC ASSUMPTIONS           .................  .................           -41,000            -41,000   
    3TDY EXPENSES                   .................           -19,930   .................           -22,930   
    3QDR CIVILIAN PERSONNEL         .................          -140,347   .................           -70,000   
      REDUCTIONS                                                                                                
    3CONTINGENCY OPERATIONS         .................           -80,300   .................  .................  
      TRANSFER--SWA                                                                                             
    3NON-BRAC CARETAKER STATUS      .................           -51,000   .................           -40,000   
    3MEMORIAL EVENTS                .................  .................  .................               400   
                                   =============================================================================
    4100   TOTAL, OPERATION AND           17,049,484         17,078,218         16,913,473         16,754,306   
            MAINTENANCE, ARMY                                                                                   
    4TRANSFER                                (50,000)           (50,000)           (50,000)           (50,000)  
                                   -----------------------------------------------------------------------------
    4200   TOTAL FUNDING AVAILABLE       (17,099,484)       (17,128,218)       (16,963,473)       (16,804,306)  
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

  Budget Activity 1: Operating Forces:of dollars]
    250  Readiness Training--NTC Rotation Shortfall...........    30,000
    250  Parachute Maintenance and Repair.....................     2,000
    250  Contingency Operations Transfer......................   -80,300
    300  Hunter UAV...........................................    12,000
    300  Flying Hour Program..................................   -30,000
    650  Depot Maintenance--Other.............................   143,200
    750  Organizational Clothing and Equipment (Increment I)..    20,000
    750  Range Safe System....................................     1,700
    750  Ft. Irwin, George AFB Airhead........................     1,300
    850  USARPAC Reserve Component Integration................     1,200
    900  JCS Exercises and Headquarters Reduction.............   -18,000
  Budget Activity 2: Mobilization:
    1300  Industrial Preparedness-Nominal Growth..............   -19,004
  Budget Activity 3: Training and Recruiting:
    1500  Service Academies-Foreign Students..................    -1,400
    1650  Army Air Battle Captain Program.....................       450
    1900  Army Pilot Modernization Program....................    11,000
    2000  Training Infrastructure Reduction...................    -5,000
    2200  Recruiting-Enlisted Advertising.....................     7,000
    2200  Recruiter Support...................................     3,500
    2200  Recruiting-College Loan Repayment Program...........     2,500
  Budget Activity 4: Administration and Servicewide 
    Activities:
    2400  Indiana University Northwest JROTC Mentoring Program       750
    2850  Army Logistics Automation...........................    20,000
    2850  Central Logistics--SSTS, Depot Maintenance, SDT.....    16,000
    3000  Headquarters and Administrative Activity Reduction..   -48,600
    3050  SBIS................................................     6,000
    3200  Army Conservation and Ecosystem Management..........     3,000
    3200  Eisenhower Center...................................     2,000
    3200  Pentagon Reservation Transfer.......................   -66,961
    3350  Laser-Leveling......................................     1,000
    3350  FEMP................................................   -45,000
    3400  Rock Island Arsenal Bridge..........................     3,500
    3600  International Military Headquarters.................   -15,000
  Undistributed:
    3710  Classified Undistributed............................    -6,895
    3715  Civilian Personnel Understrength....................   -96,400
    3730  Foreign Currency Fluctuation........................   -51,000
    3770  High Risk Automation Systems........................   -25,000
    3785  Real Property Maintenance...........................    98,812
    3787  Revised Economic Assumptions........................   -41,000
    3790  TDY Expenses........................................   -22,930
    3795  QDR--Civilian Personnel Reductions..................   -70,000
    3815  Non-BRAC Caretaker Status...........................   -40,000
    3835  Capitol Memorial Events.............................       400

                           Depot Maintenance

      The conferees recommend increasing the Army depot 
maintenance funding by $143,200,000 above the budget request. 
In addition, $16,000,000 is provided in budget activity 4, 
Administration and Service-wide support to provide for 
transportation and warehousing costs associated with the 
increase in the funded depot maintenance program. The conferees 
remain concerned about backlogs in the repair and maintenance 
of communications and electronic equipment. Accordingly, 
$43,500,000 of the total depot maintenance increase is 
allocated to the U.S. Army Communications-Electronics Command 
Battlefield Communications Review program, for performance at 
Army depots, of the following workloads: $21,000,000 for 
repair/maintenance of Mobile Subscriber Equipment shelters, 
prime movers, and accessories or support equipment; $15,800,000 
for the repair/maintenance of Non-Integrated Communications 
Secure and Integrated Communications Secure SINCGARS radios and 
accessories or support equipment; and $6,700,000 for the 
repair, maintenance or modification of the AN/TS-85 and AN/TSC-
93 Tactical Satellite Communications Terminals, associated 
antenna systems, accessories or support equipment.
      In addition, the conferees are concerned about the 
increasing backlog of depot maintenance workload associated 
with inventory drawdowns in support of contingency operations. 
Accordingly, the conferees recommend that the Army apply 
$30,000,000 of the total increase to this workload.

                       Army Logistics Automation

      The House and Senate bills each addressed separate 
shortfalls totaling $46,900,000 in Army Logistics Automation. 
The conferees agree to provide $20,000,000 in Operations and 
Maintenance, Army and $10,000,000 in Other Procurement, Army 
(LOGTECH) to support both these critical efforts.

                       Air Battle Captain Program

      The conferees concur with the funding provided for the 
continuation of the Air Battle Captain program, and direct that 
program continue to accept new students.

                           Eisenhower Center

      The conferees have provided $2,000,000 only for the 
Eisenhower Center for military history and education efforts 
focusing on combat leadership, motivation, endurance and 
including historical exhibits, equipment, and the collection, 
transcribing, and cataloging of oral histories and written 
memoirs of combat veterans

                      North Star Borough Landfill

      Of the funds provided in this account, the conferees 
direct the Department of the Army to provide $5,000,000 for 
developmental costs associated with the expansion of the North 
Star Borough landfill.

                    Operation and Maintenance, Navy

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
     42OPERATION AND MAINTENANCE, NAVY                                                                          
     43BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
     43AIR OPERATIONS                                                                                           
     44MISSION AND OTHER FLIGHT OPERATIONS          2,101,423       2,423,423       2,035,663       2,357,663   
     44FLEET AIR TRAINING                             667,112         667,112         682,112         682,112   
     45INTERMEDIATE MAINTENANCE                        58,087          58,087          58,087          58,087   
     45AIR OPERATIONS AND SAFETY SUPPORT               73,248          73,248          73,248          73,248   
     46AIRCRAFT DEPOT MAINTENANCE                     716,300         865,300       1,012,094         782,094   
     46AIRCRAFT DEPOT OPERATIONS SUPPORT               21,575          21,575          21,575          21,575   
     47BASE SUPPORT                                   789,892         789,892         789,892         789,892   
     47MAINTENANCE OF REAL PROPERTY                   262,452         262,452         282,452         262,452   
     47JCS EXERCISES & HEADQUARTERS REDUCTION   ..............  ..............         -7,500          -9,000   
     48SHIP OPERATIONS                                                                                          
     48MISSION AND OTHER SHIP OPERATIONS            2,130,636       2,130,636       2,117,112       2,117,112   
     49SHIP OPERATIONAL SUPPORT AND TRAINING          735,660         735,660         735,660         735,660   
     49INTERMEDIATE MAINTENANCE                       511,125         511,125         511,125         511,125   
     50SHIP DEPOT MAINTENANCE                       2,040,690       2,115,690       2,040,690       2,100,690   
     50SHIP DEPOT OPERATIONS SUPPORT                  786,021         786,021         785,817         785,817   
     51BASE SUPPORT                                   840,646         840,646         840,646         840,646   
     51MAINTENANCE OF REAL PROPERTY                   245,904         245,904         245,904         245,904   
     51JCS EXERCISES & HEADQUARTERS REDUCTION   ..............  ..............         -7,500          -9,000   
     52COMBAT OPERATION/SUPPORT                                                                                 
     52COMBAT COMMUNICATIONS                          210,776         210,776         210,776         210,776   
     53ELECTRONIC WARFARE                               7,763           7,763           7,763           7,763   
     53SPACE SYSTEMS AND SURVEILLANCE                 136,869         136,869         136,869         136,869   
     54WARFARE TACTICS                                125,892         125,892         125,892         125,892   
     54OPERATIONAL METEOROLOGY AND                    209,188         208,188         228,688         228,688   
        OCEANOGRAPHY                                                                                            
     55COMBAT SUPPORT FORCES                          383,830         383,830         383,815         383,815   
     55EQUIPMENT MAINTENANCE                          177,708         178,208         176,906         177,406   
     56DEPOT OPERATIONS SUPPORT                           908             908             908             908   
     56BASE SUPPORT                                   317,266         317,266         317,266         317,266   
     57MAINTENANCE OF REAL PROPERTY                    42,864          42,864          46,864          46,864   
     57CLASSIFIED PROGRAMS UNDISTRIBUTED                 ----            ----           5,500            ----   
     57WEAPONS SUPPORT                                                                                          
     58CRUISE MISSILE                                  92,462          92,482          92,482          92,482   
     58FLEET BALLISTIC MISSILE                        811,451         811,451         811,451         811,451   
     59IN-SERVICE WEAPONS SYSTEMS SUPPORT              54,927          54,927          54,927          54,927   
     59WEAPONS MAINTENANCE                            400,817         422,717         400,817         414,817   
     60BASE SUPPORT                                    71,540          71,540          71,540          71,540   
     60MAINTENANCE OF REAL ESTATE PROPERTY             27,516          27,516          30,016          27,516   
                                               -----------------------------------------------------------------
     6200    TOTAL, BUDGET ACTIVITY 1              15,052,568      15,620,968      15,345,257      15,451,057   
                                               =================================================================
     62BUDGET ACTIVITY 2: MOBILIZATION                                                                          
     63READY RESERVE AND PREPOSITIONING FORCES                                                                  
     63SHIP PREPOSITIONING AND SURGE                  455,030         455,030         454,948         454,948   
     64ACTIVATIONS/INACTIVATIONS                                                                                
     64AIRCRAFT ACTIVATIONS/INACTIVATIONS               3,081           3,081           3,081           3,081   
     65SHIP ACTIVATIONS/INACTIVATIONS                 701,583         701,583         701,583         701,583   
     65MOBILIZATION PREPAREDNESS                                                                                
     66FLEET HOSPITAL PROGRAM                          19,814          19,814          19,814          19,814   
     66INDUSTRIAL READINESS                            29,196             703          29,196          15,196   
     67COAST GUARD SUPPORT                             18,363          18,363          18,363          18,363   
                                               -----------------------------------------------------------------
     6750    TOTAL, BUDGET ACTIVITY 2:              1,227,067       1,198,574       1,226,985       1,212,985   
                                               =================================================================
     68BUDGET ACTIVITY 3: TRAINING AND                                                                          
        RECRUITING                                                                                              
     68ACCESSION TRAINING                                                                                       
     69OFFICER ACQUISITIONS                            69.274          67.874          69.274          67.874   
     69RECRUIT TRAINING                                 4,646           4,646           4,646           4,646   
     70RESERVE OFFICERS TRAINING CORPS (ROTC)          67,795          67,795          67,695          67,795   
     70BASE SUPPORT                                    57,605          57,605          57,605          57,605   
     71MAINTENANCE OF REAL PROPERTY                    74,215          42,715          74,215          74,215   
     71BASIC SKILLS AND ADVANCED TRAINING                                                                       
     72SPECIALIZED SKILL TRAINING                     236,487         236,487         218,487         216,987   
     72FLIGHT TRAINING                                314,790         314,790         314,790         314,790   
     73PROFESSIONAL DEVELOPMENT EDUCATION              69,044          65,071          64,044          66,044   
     73TRAINING SUPPORT                               135,051         137,051         122,051         122,551   
     74BASE SUPPORT                                   339,627         339,627         339,627         339,627   
     74MAINTENANCE OF REAL PROPERTY                    95,601          95,601         104,101          95,601   
     75RECRUITING AND OTHER TRAINING AND                                                                        
        EDUCATION                                                                                               
     75RECRUITING AND ADVERTISING                     122,454         129,454         122,454         125,454   
     76OFF-DUTY AND VOLUNTARY EDUCATION                69,495          69,495          69,495          69,495   
     76CIVILIAN EDUCATION AND TRAINING                 29,198          28,176          29,198          29,198   
     77JUNIOR ROTC                                     23,642          23,642          23,642          23,642   
     77BASE SUPPORT                                       445             445             445             445   
     78MAINTENANCE OF REAL PROPERTY                        62              62              62              62   
                                               -----------------------------------------------------------------
     7850    TOTAL, BUDGET ACTIVITY 3               1,709,431       1,680,536       1,681,931       1,676,031   
     79BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
     79SERVICEWIDE SUPPORT                                                                                      
     80ADMINISTRATION                                 574,305         535,225         545,494         497,194   
     80EXTERNAL RELATIONS                              24,141          24,141          24,141          24,141   
     81CIVILIAN MANPOWER AND PERSON MANAGEMENT        118,544         118,544         118,544         118,544   
     81MILITARY MANPOWER AND PERSON MANAGEMENT        124,403         124,403         124,403         124,403   
     82OTHER PERSONNEL SUPPORT                        199,446         199,446         199,446         199,446   
     82SERVICEWIDE COMMUNICATIONS                     260,056         260,056         259,749         259,749   
     83BASE SUPPORT                                   197,537         172,537         197,537         172,537   
     84MAINTENANCE OF REAL PROPERTY                    39,623          39,623          42,923          39,623   
     84LOGISTICS OPERATIONS AND TECHNICAL                                                                       
        SUPPORT                                                                                                 
     85SERVICEWIDE TRANSPORTATION                     149,675         149,975         149,675         149,675   
     85PLANNING, ENGINEERING AND DESIGN               258,779         258,779         258,779         258,779   
     86ACQUISITION AND PROGRAM MANAGEMENT             491,003         495,003         491,003         493,003   
     86AIR SYSTEMS SUPPORT                            271,149         271,149         271,149         271,149   
     87HULL, MECHANICAL AND ELECTRICAL SUPPORT         46,904          46,904          46,904          46,904   
     87COMBAT/WEAPONS SYSTEMS                          41,547          41,547          41,547          41,547   
     88SPACE AND ELECTRONIC WARFARE SYSTEMS            70,344          70,344          70,344          70,344   
     88BASE SUPPORT                                   152,606         152,606         152,606         152,606   
     89MAINTENANCE OF REAL PROPERTY                    20,470          20,470          20,470          20,470   
     89SECURITY PROGRAMS                                                                                        
     90SECURITY PROGRAMS                              536,691         536,691         536,691         536,691   
     90BASE SUPPORT                                     6,886           6,886           6,886           6,886   
     91MAINTENANCE OF REAL PROPERTY                     1,520           1,520           1,520           1,520   
     91SUPPORT OF OTHER NATIONS                                                                                 
     92INTERNATIONAL HEADQUARTERS AND AGENCIES          6,435           6,435           6,435           6,435   
                                               -----------------------------------------------------------------
     9350    TOTAL, BUDGET ACTIVITY 4               3,592,064       3,531,984       3,568,246       3,491,646   
                                               =================================================================
     93CLASSIFIED PROGRAMS UNDISTRIBUTED        ..............          1,902   ..............          4,902   
     93INFORMATION RESOURCE MANAGEMENT          ..............        -19,000   ..............        -19,000   
     93GENERAL REDUCTION, NATIONAL DEFENSE            -50,000         -50,000         -50,000         -50,000   
        STOCKPILE FUND                                                                                          
     93FOREIGN CURRENCY FLUCTUATION/BUDGET            -23,000         -23,000         -21,000         -29,000   
        AMEND                                                                                                   
     93CIVILIAN PERSONNEL UNDERSTRENGTH         ..............       -108,300        -113,000         -16,000   
     94ENVIRONMENTAL COMPLIANCE                 ..............          5,500   ..............          3,300   
     94ECONOMIC ASSUMPTIONS                     ..............  ..............        -62,000         -62,000   
     94OTHER CONTRACTS                          ..............        -29,719   ..............        -29,719   
     94REAL PROPERTY MAINTENANCE                ..............         98,540   ..............         14,924   
     94TDY EXPENSES                             ..............        -12,060   ..............        -15,060   
     94QDR CIVILIAN PERSONNEL REDUCTIONS        ..............        -34,960   ..............        -17,000   
     94ASBESTOS ERADICATION                     ..............          2,000   ..............  ..............  
     94CONTINGENCY OPERATIONS TRANSFER--SWA     ..............        -84,900   ..............  ..............  
     94MAGIC LANTERN                            ..............          1,300   ..............          1,300   
                                               =================================================================
     9750    TOTAL, OPERATION AND MAINTENANCE,     21,508,130      21,779,365      21,576,419      21,617,766   
              NAVY                                                                                              
     98TRANSFER                                       (50,000)        (50,000)        (50,000)        (50,000)  
                                               -----------------------------------------------------------------
     9850    TOTAL FUNDING AVAILABLE              (21,558,130)    (21,829,365)    (21,626,419)    (21,667,766)  
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

      Adjustments to the budget activities are as follows:

  Budget Activity 1: Operating Forces:of dollars]
    4400  Flying Hour Program Shortfalls......................   322,000
    4400  Contingency Operations Transfer.....................   -65,760
    4450  PMRF................................................    15,000
    4600  Depot Maintenance--Aviation Backlog.................    70,000
    4600  Contingency Operations Transfer.....................    -4,206
    4760  JCS Exercises and Headquarters Reduction............    -9,000
    4850  Contingency Operations Transfer.....................   -13,524
    5000  Depot Maintenance--Unfunded Ship Availabilities.....    60,000
    5050  Contingency Operations Transfer.....................      -204
    5160  JCS Exercises and Headquarters Reduction............    -9,000
    5450  Naval Meteorology and Oceanography Command..........    19,500
    5500  Contingency Operations Transfer.....................       -15
    5550  Reverse Osmosis Desalinators--Refurbishment.........       500
    5550  Contingency Operations Transfer.....................      -802
    5950  Gun Weapon Overhaul and Support, Louisville.........    12,000
    5950  Ship Self Defense System (SSDS) Equipment--Wallops 
      Island..................................................     2,000
  Budget Activity 2: Mobilization:
    6350  Contingency Operations Transfer.....................       -82
    6650  Industrial Preparedness--Nominal Growth.............   -14,000
  Budget Activity 3: Training and Recruiting:
    6900  Service Academies--Foreign Students.................    -1,400
    7200  Training Infrastructure Reduction...................   -19,500
    7300  Naval Postgraduate School--Laboratory Improvements..     2,000
    7300  Training Infrastructure Reduction...................    -5,000
    7350  CNET--Distance Learning.............................     2,000
    7350  Training Infrastructure Reduction...................   -14,500
    7550  Recruiting and Advertising..........................     3,000
  Budget Activity 4: Administration and Servicewide 
    Activities:
    8000  Pentagon Reservation Transfer.......................   -28,811
    8000  Headquarters and Administrative Activity Reduction..   -48,300
    8250  Contingency Operations Transfer.....................      -307
    8300  FEMP................................................   -25,000
    8600  ATIS................................................     2,000
  Undistributed:
    9360  Classified Undistributed............................     4,902
    9365  DoD Software Program Managers Network...............     6,000
    9365  High Risk Automation Systems........................   -25,000
    9380  Foreign Currency Fluctuation........................    -6,000
    9390  Civilian Personnel Understrength....................   -16,600
    9415  Electrotechnologies.................................     3,300
    9417  Revised Economic Assumptions........................   -62,000
    9420  Other Contracts--Program Growth.....................   -29,719
    9425  Real Property Maintenance...........................    14,924
    9430  TDY Expenses........................................   -15,060
    9435  QDR--Civilian Personnel Reductions..................   -17,000
    9450  Magic Lantern.......................................     1,300

                         SHIP DEPOT MAINTENANCE

      The conferees agree to provide $2,100,690,000 for ship 
depot maintenance, and delete the language recommended by the 
Senate establishing a floor on ship depot maintenance funding. 
The conferees' recommendation will provide the fleet commanders 
flexibility in managing their operation and maintenance funds 
during the fiscal year, in recognition that emergencies can 
lead to funding shortfalls. However, the conferees strongly 
urge the Navy leadership to ensure that all funds provided for 
ship maintenance are used solely for that purpose except in the 
most unusual of circumstances.
      The conferees understand that the Navy will initiate a 
pilot program beginning on October 1, 1997 to study whether 
combining fleet intermediate facilities with Navy shipyards 
might yield economies of scale and allow maintenance managers 
to better balance workloads in the Navy shipyards. The 
conferees believe it will take at least two years before the 
Navy can determine whether this new arrangement is in fact cost 
effective and should be made permanent or expanded to other 
locations. Therefore, the conferees direct that the pilot 
program shall not be expanded until six months after the Navy 
reports to the Committees on Appropriations on its findings, 
and that such report shall be made on or after April 1, 1999. 
Further, the conferees direct that the Navy shall not make any 
changes to the workforce in terms of total numbers of employees 
and shall not change the name of the Navy activity involved or 
make any permanent changes until this pilot study has been 
completed and evaluated by the Congress. The conferees are 
hopeful that the study will lead to significant improvements in 
Navy maintenance functions and look forward to approving 
permanent changes throughout the Navy beginning in fiscal year 
2000.

                         1998 WORLD EXPOSITION

      The conferees understand that the Navy has requested to 
participate as one of the United States Government sponsors of 
the U.S. exhibit focused on ocean research and technology at 
the 1998 World Exposition in Lisbon, Portugal. Should the 
Secretary of the Navy determine that Navy participation is 
beneficial to the interests of the service, the conferees agree 
that adequate funds should be made available from the Operation 
and maintenance account to assist in the creation and operation 
of the U.S. national pavilion. Funds shall be used to exhibit 
defense capabilities in global oceanography and environmental 
security to include interaction among NOAA and the appropriate 
entities of the Department of Defense.

                Operation and Maintenance, Marine Corps

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
     99OPERATION AND MAINTENANCE, MARINE CORPS                                                                  
     99BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
    100EXPEDITIONARY FORCES                                                                                     
    100OPERATIONAL FORCES                              345,077         404,577         364,077         378,077  
    101FIELD LOGISTICS                                 183,660         183,660         183,660         183,660  
    101DEPOT MAINTENANCE                               121,339         146,339         121,339         133,339  
    102BASE SUPPORT                                    639,495         674,895         639,495         653,995  
    102MAINTENANCE OF REAL PROPERTY                    263,593         263,593         286,193         263,593  
    102JCS EXERCISES & HEADQUARTERS REDUCTION   ..............  ..............          -5,000          -8,000  
    103USMC PREPOSITIONING                                                                                      
    103MARITIME PREPOSITIONING                          77,380          77,380          77,380          77,380  
    104NORWAY PREPOSITIONING                             3,603           3,603           3,603           3,603  
                                               -----------------------------------------------------------------
    10450    TOTAL, BUDGET ACTIVITY 1                1,634,147       1,754,047       1,670,747       1,685,647  
----------------------------------------------------------------------------------------------------------------


                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
    105BUDGET ACTIVITY 3: TRAINING AND RECRUITING                                                               
    105ACCESSION TRAINING                                                                                       
    106RECRUIT TRAINING                                           9,098        9,098        9,098        9,098  
    106OFFICER ACQUISITION                                          282          282          282          282  
    107BASE SUPPORT                                              51,266       61,266       51,266       58,766  
    107MAINTENANCE OF REAL PROPERTY                              18,115       18,115       19,715       18,115  
    108BASIC SKILLS AND ADVANCED TRAINING                                                                       
    108SPECIALIZED SKILLS TRAINING                               28,647       28,647       33,147       28,647  
    109FLIGHT TRAINING                                              156          156          156          156  
    109PROFESSIONAL DEVELOPMENT EDUCATION                         5,803        5,803        5,803        5,803  
    110TRAINING SUPPORT                                          78,749       78,749       77,649       75,649  
    110BASE SUPPORT                                              54,557       64,557       54,557       62,057  
    111MAINTENANCE OF REAL PROPERTY                              25,051       25,051       27,251       25,051  
    111RECRUITING AND OTHER TRAINING EDUCATION                                                                  
    112RECRUITING AND ADVERTISING                                74,442       78,842       74,442       78,742  
    112OFF-DUTY AND VOLUNTARY EDUCATION                          15,063       15,063       15,063       15,063  
    113JUNIOR ROTC                                                9,006        9,006        9,006        9,006  
    113BASE SUPPORT                                               8,100        8,100        8,100        8,100  
    114MAINTENANCE OF REAL PROPERTY                               2,447        2,447        2,747        2,447  
                                                           -----------------------------------------------------
    11450    TOTAL, BUDGET ACTIVITY 3                           380,782      405,182      388,282      396,982  
                                                           =====================================================
----------------------------------------------------------------------------------------------------------------


                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
    115BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
    115SERVICEWIDE SUPPORT                                                                                      
    116SPECIAL SUPPORT                                 219,312         219,312         207,102         207,102  
    117SERVICEWIDE TRANSPORTATION                       30,617          30,617          30,617          30,617  
    117ADMINISTRATION                                   26,105          26,105          26,105          26,105  
    118BASE SUPPORT                                     12,370          12,370          12,370           9,870  
    118MAINTENANCE OF REAL PROPERTY                      2,012           2,102           2,312           2,012  
                                               -----------------------------------------------------------------
    11900    TOTAL, BUDGET ACTIVITY 4                  290,416         290,416         278,506         275,706  
                                               =================================================================
    119FOREIGN CURRENCY FLUCTUATION/BUDGET              -4,000          -4,000          -2,000          -4,000  
        AMEND                                                                                                   
    119REAL PROPERTY MAINTENANCE                ..............         154,100  ..............          30,500  
    119ECONOMIC ASSUMPTIONS                     ..............  ..............          -7,000          -7,000  
    119QDR CIVILIAN PERSONNEL REDUCTIONS        ..............          -1,713  ..............          -1,000  
    119CIVILIAN PERSONNEL UNDEREXECUTION        ..............  ..............  ..............          -1,200  
    119TDY EXPENSES                             ..............  ..............  ..............          -3,000  
                                               -----------------------------------------------------------------
    12300    TOTAL, OPERATION AND MAINTENANCE,       2,301,345       2,598,032       2,328,535       2,372,635  
              MARINE CORPS                                                                                      
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

  Budget Activity 1: Operating Forces:
    10050  Readiness Training--Operating Forces Training 
      Support.................................................    25,000
    10050  Initial Issue (Clothing/Body Armor/Bivouac gear)...     8,000
    10150  Depot Maintenance Backlog Reduction................    12,000
    10200  Base Support.......................................     7,500
    10200  Personnel Support Equipment........................     7,000
    10255  JCS Exercises and Headquarters Reduction...........    -8,000
  Budget Activity 3: Training and Recruiting:
    10700  Base Support.......................................     7,500
    11000  Training Infrastructure Reduction..................    -3,100
    11050  Base Support.......................................     7,500
    11200  Recruiting and Advertising.........................     4,300
  Budget Activity 4: Administration and Servicewide 
    Activities:
    11650  Pentagon Reservation Transfer......................   -12,210
    11800  Base Support.......................................     7,500
    11800  FEMP...............................................   -10,000
  Undistributed:
    11935  Real Property Maintenance..........................    30,500
    11937  Revised Economic Assumptions.......................    -7,000
    11940  QDR--Civilian Personnel Reductions.................    -1,000
    11960  Civilian Personnel Understrength...................    -1,200
    11965  TDY Expenses.......................................    -3,000

                  Operation and Maintenance, Air Force

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference  
----------------------------------------------------------------------------------------------------------------
    124OPERATION AND MAINTENANCE, AIR                                                                           
        FORCE                                                                                                   
    125BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
    125AIR OPERATIONS:                                                                                          
    126PRIMARY COMBAT FORCES                     2,719,301        3,020,301        2,571,801        2,572,801   
    126PRIMARY COMBAT WEAPONS                      457,939          457,939          457,939          457,939   
    127COMBAT ENHANCEMENT FORCES                   253,099          253,099          256,199          256,199   
    127AIR OPERATIONS TRAINING                     617,828          617,828          617,828          617,828   
    128COMBAT COMMUNICATIONS                       981,936          981,936          981,936          981,936   
    128BASE SUPPORT                              1,758,461        1,786,261        1,758,461        1,770,561   
    129MAINTENANCE OF REAL PROPERTY                576,409          576,409          626,009          576,409   
    129JCS EXERCISES & HEADQUARTERS         ...............  ...............         -15,000          -18,000   
        REDUCTION                                                                                               
    129CLASSIFIED PROGRAMS UNDISTRIBUTED    ...............  ...............             800   ...............  
    129COMBAT RELATED OPERATIONS:                                                                               
    130GLOBAL C3I AND EARLY WARNING                712,916          712,916          712,916          712,916   
    130NAVIGATION/WEATHER SUPPORT                  131,608          131,608          131,608          131,608   
    131OTHER COMBAT OPS SUPPORT PROGRAMS           205,449          208,249          205,449          207,249   
    131JCS EXERCISES                                45,306           45,306           45,306           45,306   
    132MANAGEMENT/OPERATIONAL HEADQUARTERS         113,400          113,400          113,400          113,400   
    132TACTICAL INTEL AND OTHER SPECIAL            231,411          234,411          231,411          232,911   
        ACTIVITIES                                                                                              
    133SPACE OPERATIONS:                                                                                        
    133LAUNCH FACILITIES                           226,956          226,956          226,956          226,956   
    134LAUNCH VEHICLES                             103,576          103,576          103,576          103,576   
    134SPACE CONTROL SYSTEMS                       283,597          283,597          284,997          284,997   
    135SATELLITE SYSTEMS                            42,235           42,235           42,235           42,235   
    135OTHER SPACE OPERATIONS                       82,972           82,972           82,972           82,972   
    136BASE SUPPORT                                310,370          310,370          310,370          310,370   
    136MAINT OF REAL PROPERTY                      119,869          119,869          130,269          119,869   
                                           ---------------------------------------------------------------------
    13700    TOTAL, BUDGET ACTIVITY 1            9,974,638       10,309,238        9,877,438        9,830,038   
                                           =====================================================================
    137BUDGET ACTIVITY 2: MOBILIZATION                                                                          
    138MOBILITY OPERATIONS:                                                                                     
    138AIRLIFT OPERATIONS                        1,793,506        1,848,106        1,853,506        1,908,106   
    139AIRLIFT OPERATIONS C31                       16,267           16,267           16,267           16,267   
    139MOBILIZATION PREPAREDNESS                   145,868          140,763          145,868          140,763   
    140PAYMENTS TO TRANSPORTATION BUSINESS         514,000          514,000          514,000          514,000   
        AREA                                                                                                    
    140BASE SUPPORT                                427,865          427,865          427,865          427,865   
    141MAINTENANCE OF REAL PROPERTY                151,842          151,842          165,342          151,842   
                                           ---------------------------------------------------------------------
    14150    TOTAL, BUDGET ACTIVITY 2            3,049,348        3,098,843        3,122,848        3,158,843   
                                           =====================================================================
    142BUDGET ACTIVITY 3: TRAINING AND                                                                          
        RECRUITING                                                                                              
    142ACCESSION TRAINING:                                                                                      
    143OFFICER ACQUISITION                          51,605           50,205           51,605           50,205   
    143RECRUIT TRAINING                              3,971            3,971            3,971            3,971   
    144RESERVE OFFICER TRAINING CORPS               47,611           47,611           47,611           47,611   
        (ROTC)                                                                                                  
    144BASE SUPPORT (ACADEMIES ONLY)                57,262           57,262           57,262           57,262   
    145MAINTENANCE OF REAL PROPERTY                 50,662           50,662           50,662           50,662   
        (ACADEMIES ONLY)                                                                                        
    145BASIC SKILLS AND ADVANCED TRAINING:                                                                      
    146SPECIALIZED SKILL TRAINING                  196,980          196,980          176,980          175,980   
    146FLIGHT TRAINING                             394,075          394,075          394,075          394,075   
    147PROFESSIONAL DEVELOPMENT EDUCATION           88,682           68,216           76,682           75,682   
    147TRAINING SUPPORT                             63,296           63,296           51,296           50,296   
    148BASE SUPPORT (OTHER TRAINING)               370,436          370,436          370,436          370,436   
    148MAINTENANCE OF REAL PROPERTY (OTHER          87,072           87,072           96,372           87,072   
        TRAINING)                                                                                               
    149RECRUITING, AND OTHER TRAINING AND                                                                       
        EDUCATION:                                                                                              
    149RECRUITING AND ADVERTISING                   55,039           59,539           55,039           57,239   
    150EXAMINING                                     2,212            2,212            2,212            2,212   
    150OFF DUTY AND VOLUNTARY EDUCATION             85,609           85,609           85,609           85,609   
    151CIVILIAN EDUCATION AND TRAINING              67,183           64,832           67,183           67,183   
    151JUNIOR ROTC                                  26,052           26,052           26,052           26,052   
                                           ---------------------------------------------------------------------
    15200    TOTAL, BUDGET ACTIVITY 3            1,647,747        1,628,030        1,613,047        1,601,547   
                                           =====================================================================
                                                                                                                
    152BUDGET ACTIVITY 4: ADMIN &                                                                               
        SERVICEWIDE ACTIVITIES                                                                                  
    153LOGISTICS OPERATIONS:                                                                                    
    153LOGISTICS OPERATIONS                        788,680          793,680          788,680          788,680   
    154TECHNICAL SUPPORT ACTIVITIES                390,267          390,267          390,267          390,267   
    154SERVICEWIDE TRANSPORTATION                  236,372          236,372          236,372          236,372   
    155BASE SUPPORT                                753,449          720,449          753,449          720,449   
    155MAINTENANCE OF REAL PROPERTY                194,617          194,617          213,217          194,617   
    156  SERVICEWIDE ACTIVITIES:                                                                                
    156ADMINISTRATION                              126,642           75,480          126,642           73,942   
    157SERVICEWIDE COMMUNICATIONS                  297,316          297,316          300,016          297,316   
    157PERSONNEL PROGRAMS                          100,343          100,343          100,343          100,343   
    158RESCUE AND RECOVERY SERVICES                 55,881           55,881           55,881           55,881   
    159ARMS CONTROL                                 29,565           29,565           29,565           29,565   
    159OTHER SERVICEWIDE ACTIVITIES                524,545          525,045          494,945          495,445   
    160OTHER PERSONNEL SUPPORT                      33,623           33,623           33,623           33,623   
    160CIVIL AIR PATROL CORPORATION                 17,927           18,727           22,327           21,527   
    161BASE SUPPORT                                155,791          155,791          155,791          155,791   
    161MAINTENANCE OF REAL PROPERTY                 10,728           10,728           12,828           10,728   
    162  SECURITY PROGRAMS:                                                                                     
    162SECURITY PROGRAMS                           510,046          510,046          482,846          510,046   
    163  SUPPORT TO OTHER NATIONS:                                                                              
    163INTERNATIONAL SUPPORT                        13,260           13,260           13,260           13,260   
                                           ---------------------------------------------------------------------
    16400    TOTAL, BUDGET ACTIVITY 4            4,239,052        4,161,190        4,210,052        4,127,852   
                                           =====================================================================
    164CLASSIFIED PROGRAMS UNDISTRIBUTED    ...............          13,900   ...............           4,000   
    164CIVILIAN PERSONNEL UNDERSTRENGTH     ...............         -70,000          -82,000           -7,700   
    164GENERAL REDUCTION, NATIONAL DEFENSE         -50,000          -50,000          -50,000          -50,000   
        STOCKPILE FUND                                                                                          
    164FOREIGN CURRENCY FLUCTUATION/BUDGET         -43,000          -53,000          -53,000          -67,000   
        AMEND                                                                                                   
    164INFORMATION RESOURCE MANAGEMENT      ...............         -16,000   ...............         -16,100   
    164ECONOMIC ASSUMPTIONS                 ...............  ...............         -46,000          -46,000   
    164OTHER CONTRACTS                      ...............         -93,981   ...............         -93,981   
    164CHEMICAL/BIOLOGICAL DEFENSE--PACOM   ...............          10,000   ...............          10,000   
    165CONTINGENCY OPERATION TRANSFER--SWA  ...............        -459,900   ...............  ...............  
    165REAL PROPERTY MAINTENANCE            ...............         358,200   ...............         100,384   
    165TDY EXPENSES                         ...............         -20,000   ...............         -23,000   
    165QDR--CIVILIAN PERSONNEL REDUCTIONS   ...............         -76,253   ...............         -36,000   
                                           ---------------------------------------------------------------------
    16800        TOTAL, O&M, AIR FORCE          18,817,785       18,740,167       18,592,385       18,492,883   
    16850        TRANSFER                          (50,000)         (50,000)         (50,000)         (50,000)  
                                           ---------------------------------------------------------------------
    16900        TOTAL FUNDING AVAILABLE       (18,867,785)     (18,790,167)     (18,642,385)     (18,542,883)  
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

  Budget Activity 1: Operating Forces:of dollars]
    12600  Flying Hour Program Shortfalls (AVDLR Shortfall)...   240,000
    12600  B-52 Attrition Reserve.............................    42,400
    12600  SR-71..............................................    30,000
    12600  Battle Labs........................................     1,000
    12600  Contingency Operations Transfer....................  -459,900
    12700  NBC Defense Program................................     3,100
    12850  Force Protection-Base Physical Security............    12,100
    12905  JCS Exercises and Headquarters Reduction...........   -18,000
    13100  SIMVAL.............................................     1,800
    13250  JFACC Situational Awareness System (JSAS)..........     1,500
    13450  Spacetrack.........................................     1,400
  Budget Activity 2: Mobilization:
    13850  Flying Hour Program Shortfalls (AVDLR Shortfall)...    60,000
    13850  Depot Maintenance-KC-135 DPEM......................    54,600
    13950  Industrial Preparedness-Nominal Growth.............    -5,105
  Budget Activity 3: Training and Recruiting:
    14300  Service Academies-Foreign Students.................    -1,400
    14600  Training Infrastructure Reduction..................   -21,000
    14700  Training Infrastructure Reduction..................   -13,000
    14750  Training Infrastructure Reduction..................   -13,000
    14950  Recruiting and Advertising.........................     2,200
  Budget Activity 4: Administration and Servicewide 
    Activities:
    15500  FEMP...............................................   -33,000
    15650  Headquarters and Administrative Activity Reduction.   -52,700
    15950  CAMP...............................................       500
    15950  Pentagon Reservation Transfer......................   -29,600
    16050  Civil Air Patrol--Counterdrug Activities...........     2,800
    16050  Civil Air Patrol Corporation.......................       800
  Undistributed:
    16410  Classified Undistributed...........................     4,000
    16415  Civilian Personnel Under Strength..................    -7,700
    16430  Foreign Currency Fluctuation.......................   -24,000
    16475  REMIS..............................................    -8,900
    16475  High Risk Automation Systems.......................   -25,000
    16487  Revised Economic Assumptions.......................   -46,000
    16490  Other Contracts--Program Growth....................   -93,981
    16495  Chemical/Biological Defense--PACOM.................    10,000
    16505  Real Property Maintenance..........................   100,384
    16510  TDY Expenses.......................................   -23,000
    16515  QDR--Civilian Personnel Reductions.................   -36,000

                                 b-52s

      The conferees provide a total of $57,300,000 to fund 
attrition reserve B-52 aircraft:

Operation and maintenance...............................     $42,400,000
Aircraft procurement; mods..............................      10,400,000
Military personnel......................................       4,500,000

      The conferees direct that this funding be used to operate 
and maintain the current force structure of 94 B-52s and to 
continue standard maintenance and upgrades on the attrition 
reserve aircraft. For the purposes of this procurement funding, 
the conferees direct the Air Force to treat all 94 B-52s now in 
the force structure as planes to be retained for the six-year 
period beginning October 1, 1997.

                     william lehman aviation center

      The William Lehman Aviation Center at Florida Memorial 
College--a Historically Black College located in Miami, 
Florida--is well positioned to assist in the recruitment and 
training of minorities in military aviation. The conferees urge 
the Department of the Air Force to work closely with the 
College in fully utilizing and developing FMC's faculty, 
equipment, facilities and expertise.

                 environmental quality responsibilities

      The conferees are concerned of potentially duplicative 
activities undertaken by the Air Force Center for Environmental 
Excellence (AFCEE) and other Departmental environmental 
centers. The conferees direct that the Air Force review this 
situation and take prompt action to ensure that the mission and 
responsibilities of the AFCEE fully conform to the commitments 
made by the Air Force when this center was first established 
and that its activities are focused on the mission for which it 
was established.

                Operation and Maintenance, Defense-Wide

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
    169OPERATION AND MAINTENANCE, DEFENSE-WIDE                                                                  
    170BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
    170JOINT CHIEFS OF STAFF                           541,169         491,169         454,007         452,007  
    171SPECIAL OPERATIONS COMMAND                    1,085,927       1,129,027  ..............       1,119,327  
                                               -----------------------------------------------------------------
    17150    TOTAL, BUDGET ACTIVITY 1                1,627,096       1,620,196         454,007       1,571,334  
                                               =================================================================
    172BUDGET ACTIVITY 2: MOBILIZATION                                                                          
    172DEFENSE LOGISTICS AGENCY                         27,260          27,260          27,260          27,260  
    173BUDGET ACTIVITY 3: TRAINING AND                                                                          
        RECRUITING                                                                                              
    174DEFENSE ACQUISITION UNIVERSITY                   99,964          96,064          94,964          94,964  
    174AMERICAN FORCES INFORMATION SERVICE              11,586          11,586          11,586          11,586  
    175DEFENSE HUMAN RESOURCES FIELD ACTIVITY           14,200          14,200          14,200          14,200  
    175DEFENSE SPECIAL WEAPONS AGENCY                      475             475             475             475  
    176SPECIAL OPERATIONS COMMAND                       37,930          37,930          37,930          37,930  
                                               -----------------------------------------------------------------
    17650    TOTAL, BUDGET ACTIVITY 3                  164,155         160,255         159,155         159,155  
                                               =================================================================
    177BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
    177AMERICAN FORCES INFORMATION SERVICE              94,956          94,956          94,956          94,956  
    178CLASSIFIED AND INTELLIGENCE                   3,490,397       3,392,136       3,461,797       3,450,966  
    179DEFENSE CONTRACT AUDIT AGENCY                   329,264         326,764         329,264         326,764  
    179DEFENSE FINANCE AND ACCOUNTING SERVICE           91,654  ..............          91,654          70,654  
    180DEFENSE HUMAN RESOURCES FIELD ACTIVITY          124,735         122,735         124,735         122,735  
    180DEFENSE INFORMATION SYSTEMS AGENCY              725,858         717,658         690,258         689,058  
    181DEFENSE INVESTIGATIVE SERVICE                   186,661         186,661         186,661         186,661  
    181DEFENSE LEGAL SERVICES AGENCY                     8,839           8,839           8,087           8,087  
    182DEFENSE LOGISTICS AGENCY                      1,086,443       1,138,043       1,099,443       1,126,043  
    183DEFENSE POW/MIA OFFICE                           14,195          14,195          14,195          14,195  
    183DEFENSE SPECIAL WEAPONS AGENCY                   87,837          87,837          87,837          87,837  
    184DEFEBSE SUPPORT ACTIVITIES                       69,270          69,270          69,270          69,270  
    184DEFENSE TECHNOLOGY SECURITY                      10,545          10,545          10,545          10,545  
        ADMINISTRATION                                                                                          
    185DEPARTMENT OF DEFENSE DEPENDENTS              1,321,196       1,325,196       1,321,496       1,332,496  
        EDUCATION                                                                                               
    185FEDERAL ENERGY MANAGEMENT PROGRAM        ..............          15,000  ..............          15,000  
    186JOINT CHIEFS OF STAFF                           128,561         126,561         113,661         117,561  
    186OFFICE OF ECONOMIC ADJUSTMENT                    40,217          49,217          40,217         114,217  
    187OFFICE OF THE SECRETARY OF DEFENSE              406,894         343,127         399,056         316,489  
    187CIVIL-MILITARY PROGRAMS                  ..............  ..............          72,000          72,000  
    188ON SITE INSPECTION AGENCY                       109,226          98,026          95,626          95,626  
    188SPECIAL OPERATIONS COMMAND                       45,532          45,532          45,532          45,532  
    189WASHINGTON HEADQUARTERS SERVICE                 213,147         198,847         213,147         210,147  
    189CANADIAN CLEANUP                         ..............  ..............         -10,400  ..............  
    189REPAIRS TO FEDERALLY-FUNDED SCHOOLS      ..............  ..............          10,000          10,000  
                                               -----------------------------------------------------------------
    18950    TOTAL, BUDGET ACTIVITY 4                8,585,427       8,371,145       8,569,037       8,586,839  
                                               =================================================================
    189BUDGET ACTIVITY 5: SPECIAL OPERATIONS                                                                    
    189SPECIAL OPERATIONS COMMAND               ..............  ..............       1,123,527  ..............  
    189LEGACY                                   ..............  ..............          10,000          10,000  
    189PENTAGON RENOVATION TRANSFERS            ..............  ..............         137,652         137,652  
    189CIVILIAN PERSONNEL UNDERSTRENGTH         ..............         -33,900         -42,000          -8,000  
    189FOREIGN CURRENCY FLUCTUATION/BUDGET             -13,000         -13,000         -10,000         -16,000  
        AMEND                                                                                                   
    189IMPACT AID                               ..............          35,000  ..............  ..............  
    189ECONOMIC ASSUMPTIONS                     ..............  ..............         -29,000         -29,000  
    190INFORMATION RESOURCE MANAGEMENT          ..............         -15,000  ..............         -15,000  
    190PENTAGON RENOVATION SWING SPACE          ..............          -9,500  ..............          -9,500  
    190DEFENSE AUTOMATED PRINTING SERVICE       ..............         -15,000  ..............          -8,000  
    190CENTER FOR THE STUDY OF THE CHINESE      ..............           5,000  ..............  ..............  
        MILITARY                                                                                                
    190CONTINGENCY OPERATIONS TRANSFER--SWA     ..............          -9,500  ..............  ..............  
    190QDR--6% REDUCTION                        ..............         -72,000  ..............         -37,000  
    190QDR--RESTRUCTURING RESERVE               ..............          18,000  ..............  ..............  
    191GENERAL REDUCTION                        ..............         -15,000  ..............  ..............  
                                               -----------------------------------------------------------------
    19350    TOTAL, OPERATION AND MAINTENANCE,      10,390,938      10,053,956      10,399,638      10,369,740  
              DEFENSE-WIDE                                                                                      
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

  Budget Activity 1: Operating Forces:of dollars]
    17050  JCS Exercises......................................   -50,000
    17050  Partnership for Peace..............................   -44,162
    17050  Exercise Northern Edge.............................     5,000
    17100  SOCOM--Readiness OPTEMPO...........................    28,530
    17100  SOCOM--CP/WMD......................................    11,270
    17100  SOCOM--GORTEX/NOMEX Flight Suits...................     3,300
    17100  Contingency Operations Transfer--SOCOM/SWA.........    -3,200
    17100  SOCOM--JCS Exercises...............................    -6,500
  Budget Activity 3: Training and Recruiting:
    17400  DAU--Continuing Acquisition Education..............    -5,000
  Budget Activity 4: Administration and Servicewide 
    Activities:
    17800  Contingency Operations Transfer....................    -2,700
    17800  Classified and Intelligence........................   -36,731
    17900  DCAA--Within Grade Increases.......................    -2,500
    17950  DFAS--Executive and Professional Training..........    -4,500
    17950  DFAS--Property Accountability System...............   -16,500
    18000  DHRFA--Operations..................................    -2,000
    18050  DISA--White House Communications Agency............    -8,200
    18050  DISA--Contingency Operations Transfer..............   -28,600
    18150  Defense Legal Services Agency......................      -752
    18200  DLA--Security Locks................................    25,000
    18200  DLA--Automated Document Conversion.................    20,000
    18200  DLA--Procurement Technical Assist. Program.........    17,000
    18200  DLA--DPSC Demolition...............................    10,000
    18200  DLA--Cargo Methods and Technologies................     3,000
    18200  DLA--Blankets......................................    -2,400
    18200  DLA--Housing Improvement Fund Management...........    -7,000
    18200  DLA--DWCF Transfer.................................   -26,000
    18500  DoDDS--Guam Schools................................    18,000
    18500  DoDDS--Family Counseling and Crisis Services.......     3,000
    18500  DoDDS--Math Teacher Leadership Development Project.       300
    18500  DoDDS--Unobligated Balances........................   -10,000
    18550  Federal Energy Management Program..................    15,000
    18600  JCS--Travel and Administrative Costs...............   -11,000
    18650  Monterey Institute Counter-Proliferation Analysis..     9,000
    18650  Industrial Modernization...........................    50,000
    18650  Ford Ord Defense Conversion Center.................     7,500
    18650  San Diego Coversion Center.........................     7,500
    18700  OSD--Partnership for Peace Transfer................    44,162
    18700  OSD--Military Personnel Information System.........     5,000
    18700  OSD--First Responder Training......................     1,300
    18700  OSD--C3I Mission and Analysis Fund.................    -5,000
    18700  OSD--Funding Transfer..............................   -17,000
    18700  OSD--Administrative Savings........................   -20,000
    18700  OSD--Civil Military Programs Transfer..............   -40,000
    18700  OSD--Civil Military Programs.......................   -58,867
    18755  Civil Military Programs............................    72,000
    18800  OSIA--Treaty Requirements..........................   -10,000
    18800  OSIA--Transfer to Contingency Operations...........    -3,600
    18900  WHS--TDY and Administrative Expenses...............    -3,000
    18920  Repairs to Federally Funded Schools................    10,000
  Undistributed:
    18960  Legacy.............................................    10,000
    18965  Pentagon Reservation Transfer......................   137,652
    18970  Civilian Personnel Understrength...................    -8,000
    18975  Foreign Currency Fluctuation.......................    -3,000
    18982  Revised Economic Assumptions.......................   -29,000
    19010  High Risk Automation Systems.......................   -15,000
    19030  Pentagon Renovation Fund--Swing Space Costs........    -9,500
    19045  Defense Automated Printing Service.................    -8,000
    19090  QDR Defense Agency Reductions......................   -37,000

                 defense finance and accounting service

      The Department requested $91,654,000 for activities that 
the conferees believe are more properly funded through the 
Defense Working Capital Fund. The conferees therefore agree to 
a reduction of $21,000,000 and direct DFAS to budget for these 
activities within the Defense Working Capital Fund in future 
budget submissions.

                 defense human resources field activity

      The conferees agree to provide $138,935,000 for the 
Defense Human Resources Field Activity, a reduction of 
$2,000,000 from the President's Budget. The conferees direct 
that none of this reduction be taken against the Department's 
very successful efforts with Operation Mongoose.

                        defense logistics agency

      The Defense Logistics Agency (DLA) budget included 
$42,900,000 for expenses that were in the Defense Working 
Capital Fund (DWCF). Of these the conferees believe that 
$36,000,000, as identified in House Report 105-206, should have 
stayed within the DWCF and directs DLA to budget for these 
expenses within the DWCF in the future.

                  national imagery and mapping agency

      The conferees agree to delete House language, but expect 
the National Imagery and Mapping Agency (NIMA) to abide by its 
commitment and recent Policy Directive 8600R1 that a 
qualifications based selection (QBS) process for mapping, 
charting and geodesy service contracts will be used and that 
NIMA will seek a revision to the Federal Acquisition 
Regulations to this effect.

                       new parent support program

      The conferees agree that the New Parent Support Program 
complements and works in concert with all programs associated 
with violence prevention, child development and family 
advocacy. In recent years, funds have been provided for 
expansion of this program within all the Services. The 
conferees encourage the Department to continue funding this 
program at current levels during fiscal year 1998, and to 
budget sufficient resources in future budget submissions.

                        industrial modernization

      The conference report includes $50,000,000 only for 
projects or programs to assist in the commercial reutilization 
and modernization of government industrial complexes no longer 
in service. The conferees direct that such funds be used to 
support no more than 10 percent of the total project cost, and 
be committed only for projects that are determined by the 
Secretary (1) to be financially self-sustaining over the long-
term, and (2) to enhance the national defense. The conferees 
intend that these funds be used for grants for operational 
transition, planning, and training costs.

    reserve peacetime support to active duty and civilian activities

      The conferees agree to provide $10,000,000 for Reserve 
peacetime support to active duty and civilian activities. The 
conferees direct the Department of Defense to report to the 
Committees on Appropriations on how the fiscal year 1997 
funding was allocated by theater, activities or exercises 
supported by this program, and the number of reservists by 
service who participated under this initiative. This report is 
to be provided not later than January 15, 1998.

                        Civil Military Programs

      The conferees recommend a total of $72,000,000 for civil/
military programs for fiscal year 1998 as follows:

                        [In thousands of dollars]

Youth Challenge program.......................................    48,000
Innovative Readiness Training.................................    20,000
Starbase youth program........................................     4,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total...................................................    72,000

                       on-site inspection agency

      The conferees have agreed to reduce funding for the On-
Site Inspection Agency. If additional funds prove necessary to 
meet emergent requirements stemming from valid treaty 
obligations, the conferees expect the Department of Defense to 
submit a reprogramming request subject to normal, prior 
approval reprogramming procedures.

                          travel reengineering

      The Department of Defense report on Travel Reengineering 
states that the Department spends approximately $3,000,000,000 
annually on temporary duty travel. Of this amount, 15 to 30 
percent is for management overhead costs. The Department 
believes that, through reengineering, they can reduce these 
costs by more than half, a savings of over $300,000,000 per 
year. The conferees are supportive of these goals, but remain 
concerned about how DoD will identify and capture these 
savings. The conferees therefore direct the Department to 
provide a detailed report, no later than January 1, 1998, of 
what savings it expects to result from implementing this 
program in Travel Region 6, where those savings will come from 
and how DoD intends to capture those savings in its future 
budget requests. The conferees also direct the Department to 
provide a similar report with respect to full implementation 
prior to expanding this program beyond Travel Region 6.

                                 legacy

      Of the funds appropriated for the Legacy program, the 
Committee directs that $100,000 be utilized to develop a 
management plan, in cooperation with the appropriate state and 
local entities, to preserve and protect the Revolutionary War 
gunboat that was recently discovered on the bottom of Lake 
Champlain.

                         job placement program

      The Conferees direct the Department of Defense to provide 
at least $6,000,000 from within available funds for the 
implementation of a combined job placement and community 
outreach services program. This program should market and 
coordinate involvement of existing qualified service providers 
through the Job Training Partnership Act, facilitate municipal 
offering of community outreach services and provide data for 
the evaluation of federal job placement programs. This program 
should be implemented in communities where military bases have 
undergone downsizing.

                Operation and Maintenance, Army Reserve

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
    195OPERATION AND MAINTENANCE, ARMY RESERVE                                                                  
    195BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
    196MISSION OPERATIONS                                                                                       
    196BASE SUPPORT                                             309,446      309,446      309,446      309,446  
    197MAINTENANCE OF REAL PROPERTY                              85,255       90,255       85,255       90,255  
    197DEPOT MAINTENANCE                                         41,366       41,366       41,366       41,366  
    198TRAINING OPERATIONS                                      620,827      630,827      640,827      630,827  
                                                           -----------------------------------------------------
    19900    TOTAL, BUDGET ACTIVITY 1                         1,056,894    1,071,894    1,076,894    1,071,894  
                                                           =====================================================
    199BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES                                                        
    200ADMINISTRATION AND SERVICEWIDE ACTIVITIES                                                                
    200INFORMATION MANAGEMENT                                    20,033       20,033       20,033       20,033  
    201PUBLIC AFFAIRS                                               489          489          489          489  
    201PERSONNEL ADMINISTRATION                                  50,196       50,196       50,196       50,196  
    202STAFF MANAGEMENT                                          27,405       27,405       27,405       27,405  
    202RECRUITING AND ADVERTISING                                37,874       37,874       37,874       37,874  
                                                           -----------------------------------------------------
    20300    TOTAL, BUDGET ACTIVITY 4                           135,997      135,997      135,997      135,997  
                                                           =====================================================
    20700    TOTAL, OPERATION AND MAINTENANCE, ARMY           1,192,891    1,207,891    1,212,891    1,207,891  
              RESERVE                                                                                           
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

  Budget Activity 1: Operating Forces:of dollars]
    19700  Maintenance of Real Property.......................     5,000
    19850  Training Operations/Ground OPTEMPO.................    10,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................   +15,000

                Operation and Maintenance, Navy Reserve

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
    208OPERATION AND MAINTENANCE, NAVY RESERVE                                                                  
    209BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
    209RESERVE AIR OPERATIONS                                                                                   
    210MISSION AND OTHER FLIGHT OPERATIONS                      302,531      302,531      302,531      319,531  
    210FLEET AIR TRAINING                                           200          200          200          200  
    211INTERMEDIATE MAINTENANCE                                  17,528       17,528       17,528       17,528  
    211AIR OPERATION AND SAFETY SUPPORT                           3,074        3,074        3,074        3,074  
    212AIRCRAFT DEPOT MAINTENANCE                                58,053       68,053       58,053       65,053  
    212AIRCRAFT DEPOT OPS SUPPORT                                   315          315          315          315  
    213BASE SUPPORT                                              99,563       99,563       99,563       99,563  
    213MAINTENANCE OF REAL PROPERTY                              24,512       24,512       24,512       24,512  
    214  RESERVE SHIP OPERATIONS                                                                                
    214MISSION AND OTHER SHIP OPERATIONS                         59,509       59,509       59,509       59,509  
    215SHIP OPERATIONAL SUPPORT AND TRAINING                        638          638          638          638  
    215INTERMEDIATE MAINTENANCE                                  10,326       10,326       10,326       10,326  
    216SHIP DEPOT MAINTENANCE                                    68,324       68,324       68,324       68,324  
    216SHIP DEPOT OPERATIONS SUPPORT                              1,487        1,487        1,487        1,487  
    217  RESERVE COMBAT OPERATIONS SUPPORT                                                                      
    218COMBAT SUPPORT FORCES                                     25,632       25,632       25,632       25,632  
    218BASE SUPPORT                                              38,503       38,503       38,503       38,503  
    219MAINTENANCE OF REAL PROPERTY                               9,220        9,220        9,220        9,220  
    219  RESERVE WEAPONS SUPPORT                                                                                
    220WEAPONS MAINTENANCE                                        4,136        4,136        4,136        4,136  
                                                           -----------------------------------------------------
    22050    TOTAL, BUDGET ACTIVITY 1                           723,551      733,551      723,051      747,551  
                                                           =====================================================
    221BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES                                                        
    221ADMINISTRATION AND SERVICEWIDE ACTIVITIES                                                                
    222ADMINISTRATION                                             6,209        6,209        6,209        6,209  
    222CIVILIAN MANPOWER AND PERSONNEL MANAGEMENT                 2,012        2,012        2,012        2,012  
    223MILITARY MANPOWER AND PERSONNEL MANAGEMENT                32,102       32,102       32,102       32,102  
    224SERVICEWIDE COMMUNICATIONS                                33,155       33,155       33,155       33,155  
    224BASE SUPPORT                                              26,692       26,692       26,692       26,692  
    225MAINTENANCE OF REAL PROPERTY                               5,051        5,051        5,051        5,051  
    225COMBAT/WEAPONS SYSTEMS                                     2,723        2,723        2,723        2,723  
    226GENERAL DEFENSE INTELLIGENCE PROGRAM                         511          511          511          511  
    226  LOGISTICS OPERATIONS AND TECHNICAL SUPPORT                                                             
    226AIR SYSTEMS SUPPORT                                        2,705        2,705        2,705        2,705  
                                                           -----------------------------------------------------
    22750    TOTAL, BUDGET ACTIVITY 4                           111,160      111,160      111,160      111,160  
                                                           =====================================================
    227NSIPS                                                ...........       43,500  ...........       43,500  
    227CONTINGENCY OPERATIONS TRANSFER--SWA                 ...........         -500  ...........         -500  
    227MAINTENANCE OF REAL PROPERTY                         ...........       37,000  ...........       20,000  
                                                           =====================================================
    23150    TOTAL, OPERATION AND MAINTENANCE, NAVY             834,711      924,711      834,211      921,711  
              RESERVE                                                                                           
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

  Budget Activity 1: Operating Forces:of dollars]
    21000  Mission and Other Flight Operations/Flying Hours...    17,000
    21200  Aircraft Depot Maintenance.........................     7,000
  Other Adjustments:
    22760  NSIPS..............................................    43,500
    22765  Contingency Operations Transfer--SWA...............      -500
    22770  Maintenance of Real Property.......................    20,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................   +87,000

                 military personnel information systems

      The conferees have agreed to provide $69,000,000 only for 
Military Personnel Information Systems and support the 
direction in House Report 105-206 on management control and use 
of these programs and funds by the Commander, Naval Reserve 
Forces. Of the funds identified in the House report, only 
$11,500,000 is specifically for the Navy Standard Integrated 
Personnel System (NSIPS) and $5,000,000 is for the Joint 
Requirements and Integration Office. These funds are in 
addition to those already budgeted for these programs. The 
remaining funds are for all the related activities described in 
the House report, such as continuing the Navy central design 
activity consolidation and providing initial outfitting 
equipment and infrastructure support for information system 
facilities. The conferees direct the Navy and DoD to ensure 
that no other military personnel information system initiatives 
duplicate NSIPS or the DoD objective personnel system, now 
known as the Defense Integrated Military Human Resources System 
(DIMHRS). The conferees also direct DoD and the services to 
identify and allocate acquisition certified personnel for the 
DIMHRS Joint Program Management Office no later than November 
1, 1997 and to fully fund and budget for NSIPS and DIMHRS.

            Operation and Maintenance, Marine Corps Reserve

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
    233OPERATION AND MAINTENANCE, MARINE CORPS                                                                  
        RESERVE                                                                                                 
    233BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
    234MISSION FORCES                                                                                           
    234TRAINING                                         14,559          18,459          14,559          17,559  
    235OPERATING FORCES                                 30,174          35,174          30,174          33,174  
    235BASE SUPPORT                                     16,309          16,309          16,309          16,309  
    236MAINTENANCE OF REAL PROPERTY                      6,898           6,898           6,898           6,898  
    236DEPOT MAINTENANCE                                 2,555           2,555           2,555           2,555  
                                               -----------------------------------------------------------------
    23700    TOTAL, BUDGET ACTIVITY 1                   70,495          79,395          70,495          76,495  
                                               =================================================================
    237BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
    238ADMINISTRATION AND SERVICEWIDE                                                                           
        ACTIVITIES                                                                                              
    238RECRUITING AND ADVERTISING                        7,726           7,726           7,726           7,726  
    239SPECIAL SUPPORT                                  11,199          11,199          11,199          11,199  
    239SERVICEWIDE TRANSPORTATION                        5,161           5,161           5,161           5,161  
    240ADMINISTRATION                                    7,039           7,039           7,039           7,039  
    240BASE SUPPORT                                      8,746           8,746           8,746           8,746  
                                               -----------------------------------------------------------------
    24200    TOTAL, BUDGET ACTIVITY 4                   39,871          39,871          39,871          39,871  
    24600    TOTAL, O&M, MARINE CORPS RESERVE          110,366         119,266         110,366         116,366  
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

  Budget Activity 1: Operating Forces:of dollars]
    23450  Training/M1A1 Tank Training........................     3,000
    23500  Operating Forces/Initial Issue.....................     3,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    +6,000

              Operation and Maintenance, Air Force Reserve

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                             Budget         House        Senate      Conference 
----------------------------------------------------------------------------------------------------------------
   247OPERATION AND MAINTENANCE, AIR FORCE RESERVE                                                              
   248BUDGET ACTIVITY 1: OPERATING FORCES                                                                       
   248AIR OPERATIONS                                                                                            
   249AIRCRAFT OPERATIONS                                  1,227,609     1,227,609     1,234,389     1,234,389  
   249MISSION SUPPORT OPERATIONS                              39,482        39,482        39,482        39,482  
   250BASE SUPPORT                                           216,573       216,573       216,573       216,573  
   250MAINTENANCE OF REAL PROPERTY                            60,314        70,314        60,314        60,314  
     -----------------------------------------------------------------------------------------------------------
   25150    TOTAL, BUDGET ACTIVITY 1                       1,543,978     1,553,978     1,550,758     1,550,758  
     ===========================================================================================================
   252BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                    
       ACTIVITIES                                                                                               
   252ADMINISTRATION AND SERVICEWIDE ACTIVITIES                                                                 
   253ADMINISTRATION                                          46,363        46,363        46,363        46,363  
   253MILITARY MANPOWER AND PERSONNEL MANAGEMENT              19,262        19,262        19,262        19,262  
   254RECRUITING AND ADVERTISING                               7,966         7,966         7,966         7,966  
   254OTHER PERSONNEL SUPPORT                                  6,310         6,310         6,310         6,310  
   255AUDIOVISUAL                                                541           541           541           541  
   255WC-130 WEATHER RECONN                             ............           830  ............           830  
     -----------------------------------------------------------------------------------------------------------
   25550    TOTAL, BUDGET ACTIVITY 4                          80,442        81,272        80,442        81,272  
     ===========================================================================================================
   25950    TOTAL, O&M, AIR FORCE RESERVE                  1,624,420     1,635,250     1,631,200     1,632,030  
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

  Budget Activity 1: Operating Forces:of dollars]
    24900 Aircraft Operations/C-130 Force Structure...........     6,780
  Budget Activity 4: Administration and Servicewide 
    Activities:
    25510 WC-130 Weather Reconnasissance......................       830
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    +7,610

             Operation and Maintenance, Army National Guard

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                             Budget         House        Senate      Conference 
----------------------------------------------------------------------------------------------------------------
    261OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD                                                           
    261BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
    262MISSION OPERATIONS                                                                                       
    262TRAINING OPERATIONS                                 1,704,250     1,728,950     1,749,250     1,728,950  
    263MEDICAL SUPPORT                                        26,701        26,701        26,701        26,701  
    264DEPOT MAINTENANCE                                      53,824        58,824        63,824        61,324  
    264BASE SUPPORT                                          250,700       250,700       250,700       250,700  
    265MAINTENANCE OF REAL PROPERTY                           50,618        60,618       150,618       135,618  
                                                       ---------------------------------------------------------
    26550    TOTAL, BUDGET ACTIVITY 1                      2,086,093     2,125,793     2,241,093     2,203,293  
                                                       =========================================================
    266BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
    266ADMINISTRATION AND SERVICEWIDE ACTIVITIES                                                                
    267INFORMATION MANAGEMENT                                 32,376        32,376        53,376        53,376  
    268PERSONNEL ADMINISTRATION                               62,082        62,082        62,082        62,082  
    268STAFF MANAGEMENT                                       45,190        45,190        45,190        45,190  
    269RECRUITING AND ADVERTISING                             33,191        33,191        33,191        33,191  
    269CHEM/BIO MISSION STUDIES                         ............        10,000  ............        10,000  
    269STOCK FUND SECONDARY ITEMS                       ............  ............        15,000         7,500  
    269SOFTWARE ACQUISITION AND SECURITY TRAINING       ............         5,000  ............         5,000  
                                                       ---------------------------------------------------------
    26950    TOTAL, BUDGET ACTIVITY 4                        172,839       187,839       208,839       216,339  
                                                       =========================================================
    27350    TOTAL, OPERATION AND MAINTENANCE, ARMY        2,258,932     2,313,632     2,449,932     2,419,632  
              NAT. GUARD                                                                                        
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

  Budget Activity 1: Operating Forces:of dollars]
    26250  Training Operations/Ground Optempo.................    20,000
    26250  Training Operations/Angel Gate Academy.............     4,200
    26250  Training Operations/Laser Leveling.................       500
    26400  Depot Maintenance..................................     7,500
    26500  Maintenance of Real Property.......................    85,000
  Budget Activity 4: Administration and Servicewide 
    Activities:
    26700  Information Management.............................    21,000
    26910  Chem/Bio Mission Studies...........................    10,000
    26912  Stock Fund Secondary Items.........................     7,500
    26915  Software Acquisition and Security Training.........     5,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................  +160,700

                      maintenance of real property

      The conferees recommend $85,000,000 above the budget 
request for maintenance of real property for Army National 
Guard facilities. The conferees direct that these funds be used 
to reduce the growing backlog within the 54 Army National Guard 
organizations, not for studies or other administrative 
functions.

   chemical/biological defense and counter terrorism mission planning

      The conferees recommend $10,000,000 only to support 
efforts to develop the National Guard's domestic chemical/
biological counter terrorism mission. The conferees reiterate 
the directive in the House report and strongly endorse efforts 
to accelerate implementation of this important mission. The 
conferees expect the National Guard to develop a mission plan 
that is fully coordinated with all related plans and programs 
of the Office of the Secretary of Defense, the active forces, 
and all other Reserve Components so as to leverage existing 
capabilities to the maximum extent possible. A mechanism for 
review and input from all relevant organizations must be an 
integral part of this planning effort. The conferees also 
intend that a portion of these funds may be used to conduct 
joint, interagency training for federal, state, and local 
responders with respect to counter terrorism operations and the 
defense against weapons of mass destruction and for testing and 
evaluating equipment related to the support of the chemical/
biological defense mission.

                       home station mobilization

      The conferees support the expansion of Home Station 
Mobilization during fiscal year 1998, as a way to reduce 
mobilization costs and increase the availability of the Reserve 
Components. The conferees direct the Department of the Army to 
report to the congressional defense committees on how this 
program can be expanded in both the Army National Guard and the 
Army Reserve not later than January 15, 1998. The report should 
also provide a timetable to implement the results of this 
review during fiscal year 1998. It should address costs (both 
personnel and resources) associated with deploying from home 
station versus a mobilization station and recommendations 
regarding mission transfers to the Reserve Components.

             Operation and Maintenance, Air National Guard

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
    275OPERATION AND MAINTENANCE, AIR NATIONAL GUARD                                                            
    275BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
    276AIR OPERATIONS                                                                                           
    276AIRCRAFT OPERATIONS                                    2,243,510    2,245,010    2,262,573    2,262,573  
    277MISSION SUPPORT OPERATIONS                               334,314      334,314      334,314      334,314  
    277BASE SUPPORT                                             296,196      296,196      296,196      296,196  
    278MAINTENANCE OF REAL PROPERTY                              77,879       77,879       77,879       77,879  
    278DEPOT MAINTENANCE                                         30,048       33,048       30,048       33,048  
                                                           -----------------------------------------------------
    27900    TOTAL, BUDGET ACTIVITY 1                         2,981,947    2,986,447    3,001,010    3,004,010  
                                                           =====================================================
    279BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES                                                        
    280SERVICEWIDE ACTIVITIES                                                                                   
    280ADMINISTRATION                                             3,073        3,073        3,073        3,073  
    281RECRUITING AND ADVERTISING                                 6,199        6,199        6,199        6,199  
                                                           -----------------------------------------------------
    28150    TOTAL, BUDGET ACTIVITY 4                             9,272        9,272        9,272        9,272  
                                                           =====================================================
    28550    TOTAL, O&M, AIR NATIONAL GUARD                   2,991,219    2,995,719    3,010,282    3,013,282  
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

  Budget Activity 1: Operating Forces:of dollars]
    27650  Aircraft Operations/159th Fighter Group............     1,500
    27650  Aircraft Operations/C-130 Force Structure              13,063
    27650  Aircraft Operations/C-130 Operations...............     4,500
    27850  Depot Maintenance..................................     3,000
                    --------------------------------------------------------------
                    ____________________________________________________

            Total adjustments.................................   +22,063

             Overseas Contingency Operations Transfer Fund

      The conferees agree to provide $1,884,000,000 for the 
Overseas Contingency Operations Transfer Fund. The conferees 
agree to realign funding for operations in Southwest Asia from 
the services' Operation and maintenance accounts into the 
Overseas Contingency Operations Transfer Fund. Accordingly, the 
conferees agree to transfer $416,500,000 into this account.

          United States Court of Appeals for the Armed Forces

      The conference agreement provides $6,952,000 for the 
United States Court of Appeals of the Armed Forces as requested 
in the budget.

                    Environmental Restoration, Army

      The conferees agree to provide $375,337,000 for 
Environmental Restoration, Army.

                    Environmental Restoration, Navy

      The conferees agree to provide $275,500,000 for 
Environmental Restoration, Navy.

                  Environmental Restoration, Air Force

      The conferees agree to provide $376,900,000 for 
Environmental Restoration, Air Force.

                Environmental Restoration, Defense-Wide

      The conferees agree to provide $26,900,000 for 
Environmental Restoration, Defense-Wide.

         Environmental Restoration, Formerly Used Defense Sites

      The conferees agree to provide $242,300,000 for 
Environmental Restoration, Formerly Used Defense Sites.

                                newmark

      The conferees understand that both the Environmental 
Protection Agency (EPA) and the City of San Bernardino believe 
that the Newmark and Muscoy plume contamination in San 
Bernardino, CA is a direct result of industrial waste from a 
World War II depot and maintenance facility (Camp Ono). The 
report accompanying the fiscal year 1997 DoD Appropriations Act 
highlighted the urgency of this problem and requested prompt 
action by the Department of Defense. Because the Department has 
not adequately responded to last year's report language 
concerning this important issue, the conferees direct the DoD, 
within 90 days of enactment of this Act, to provide a report to 
the congressional defense committees which fully explains the 
Department's current and future plans relating to its role in 
the cleanup of the Newmark/Muscoy site.

             Overseas Humanitarian, Disaster, and Civic Aid

      The conferees agree to provide $47,130,000 for Overseas 
Humanitarian, Disaster and Civic Aid. The conferees direct that 
none of the reduction should be taken against the Department's 
demining efforts. In addition, the conferees expect the 
Department of Defense to coordinate its efforts on the 
rehabilitation of land mine victims with other U.S. Government 
agencies performing similar activities, including any center 
devoted to these efforts within the Department of Education.

                  Former Soviet Union Threat Reduction

      The conferees agree to provide $382,200,000, for the 
Former Soviet Union Threat Reduction program.

                 Quality of Life Enhancements, Defense

      The conferees agree to provide a total of $360,000,000 
for Quality of Life Enhancements, Defense. Given the 
substantial backlog of real property maintenance in the areas 
of barracks, dormitories and related facilities, the conferees 
direct that these funds be applied to workload for such 
projects. The conferees further direct the Secretaries of each 
of the Military Services to provide the congressional defense 
committees with a report on each additional project to be 
funded from funds available in this account prior to 
solicitation for these projects. This report shall include the 
location, estimated cost and projected commencement and 
completion dates for each project.

                         TITLE III--PROCUREMENT

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
                      SUMMARY                                                                                   
ARMY:                                                                                                           
    AIRCRAFT....................................       1,029,459       1,541,217       1,356,959       1,346,317
        TRANSFER................................       (133,000)  ..............  ..............  ..............
    MISSILES....................................       1,178,151         771,942       1,173,081         762,409
    WEAPONS, TRACKED COMBAT VEHICLES............       1,065,707       1,332,907       1,156,506       1,298,707
    AMMUNITION..................................         890,902       1,062,802       1,042,602       1,037,202
    OTHER.......................................       2,455,030       2,502,886       2,783,735       2,679,130
                                                 ---------------------------------------------------------------
      TOTAL, ARMY...............................       6,619,249       7,211,754       7,512,883       7,123,765
                                                 ===============================================================
NAVY:                                                                                                           
    AIRCRAFT....................................       5,951,965       6,753,465       6,312,937       6,535,444
        TRANSFER................................       (134,000)  ..............  ..............  ..............
    WEAPONS.....................................       1,136,293       1,175,393       1,138,393       1,102,193
    AMMUNITION..................................         336,797         423,797         344,797         397,547
    SHIPS.......................................       7,438,158       7,628,158       8,510,458       8,235,591
    OTHER.......................................       2,825,500       3,084,485       2,832,800       3,144,205
    MARINE CORPS................................         374,306         491,198         440,106         482,398
                                                 ---------------------------------------------------------------
      TOTAL, NAVY...............................      18,063,019      19,556,496      19,579,491      19,897,378
                                                 ===============================================================
AIR FORCE:                                                                                                      
    AIRCRAFT....................................       5,684,847       6,386,479       6,390,847       6,480,983
        TRANSFER................................       (133,000)  ..............  ..............  ..............
    MISSILES....................................       2,557,741       2,320,741       2,411,741       2,394,202
    AMMUNITION..................................         403,984         414,884         400,984         398,534
    OTHER.......................................       6,561,253       6,588,939       6,653,053       6,592,909
                                                 ---------------------------------------------------------------
      TOTAL, AIR FORCE..........................      15,207,825      15,711,043      15,856,625      15,866,628
                                                 ===============================================================
DEFENSE-WIDE....................................       1,695,085       2,186,669       1,753,285       2,106,444
NATIONAL GUARD AND RESERVE EQUIPMENT............  ..............         850,000         653,000         653,000
                                                 ===============================================================
      TOTAL PROCUREMENT.........................      41,585,178      45,515.962      45,355,284      45,647,215
        TRANSFER................................       (400,000)  ..............  ..............  ..............
----------------------------------------------------------------------------------------------------------------

                       Aircraft Procurement, Army

    The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
  AIRCRAFT PROCUREMENT, ARMY:                                                                                   
    C-XX (MEDIUM RANGE) AIRCRAFT...............  ...........  ...........       23,000  ...........       23,000
    GUARDRAIL COMMON SENSOR (TIARA)............        3,388       13,046        3,388  ...........       13,046
    SHORT RANGE UAV............................  ...........       20,000  ...........  ...........  ...........
    UH-60 BLACKHAWK (MYP)......................      183,231      309,231      310,531           28      272,231
    UH-1 MODS..................................        4,679        4,679        2,679  ...........        2,679
    UH-60 MODS.................................       14,353       14,353       23,853  ...........       26,853
    KIOWA WARRIOR..............................       38,822      213,822       53,822  ...........       53,822
    EH-60 QUICKFIX MODS........................       38,140       44,640       38,140  ...........       44,640
    ASE MODS...................................        4,578       19,078       12,678  ...........       19,078
    AIRCRAFT SURVIVABILITY EQUIPMENT...........          905       15,705          905  ...........        8,305
    TRAINING DEVICES...........................  ...........        9,300       18,600  ...........       13,300
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........       -8,000  ...........       -8,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
U-H60 Blackhawk (MYP)...........................         183,231         309,231         310,531         272,231
    Aircraft....................................  ..............        +120,000        +127,300         +83,000
    Q-kits for Active Army......................  ..............          +6,000  ..............          +6,000
    (Note: Additional funds are to procure at                                                                   
     least 10 additional aircraft. Procurement                                                                  
     of the 28 new aircraft are to result in the                                                                
     fielding of 28 aircraft from the Army to                                                                   
     the Army National Guard.)                                                                                  
UH-60 MODS......................................          14,353          14,353          23,853          26,853
    Senate add..................................  ..............  ..............          +9,500          +9,500
    UH-60L Blackhawk Fire Hawk kits.............  ..............  ..............  ..............          +3,000
    (Note: UH-60L Fire Hawk kits are to be                                                                      
     transferred to the Army National Guard.)                                                                   
Kiowa Warrior...................................          38,822         213,822          53,822          53,822
    Aircraft....................................  ..............        +157,177  ..............               0
    Safety modifications........................  ..............         +23,300         +15,000         +15,000
ASE Mods........................................           4,578          19,078          12,678          19,078
    Laser detection sets........................  ..............          +7,000  ..............          +7,000
    Advanced threat infrared countermeasures....  ..............          +7,500          +8,100          +7,500
Aircraft Survivability Equipment................             905          15,705             905           8,305
    ASET IV.....................................  ..............         +14,800  ..............          +7,400
Common Ground Equipment.........................              +0         +18,600          +9,300         +13,300
    Geographic databases........................  ..............         +18,600          +9,300         +13,300
----------------------------------------------------------------------------------------------------------------

                       Missile Procurement, Army

    The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
  MISSILE PROCUREMENT, ARMY:                                                                                    
    PATRIOT SYSTEM SUMMARY (MYP)...............      349,109  ...........      349,109  ...........  ...........
    AVENGER SYSTEM SUMMARY.....................  ...........  ...........       13,000  ...........        7,400
    HELLFIRE SYS SUMMARY.......................      279,687      228,287      268,987        1,200      248,987
    MLRS ROCKET................................        2,863       14,863       19,863  ...........       19,863
    MLRS LAUNCHER SYSTEMS......................      102,649      105,649      127,749           35      125,749
    ARMY TACTICAL MSL SYS (ATACMS) (MYP).......       97,814       97,814       87,044          153       97,814
    BAT........................................       85,208       45,208       45,208           40  ...........
    EFOG-M.....................................  ...........  ...........  ...........  ...........       13,300
    PATRIOT MODS...............................       20,825       30,825       20,825  ...........        8,000
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........       -8,000  ...........       -8,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                    Budget       House      Senate    Conference
----------------------------------------------------------------------------------------------------------------
Patriot System Summary..........................................     349,109           0     349,109           0
    Transfer to Procurement, Defense Wide.......................  ..........    -349,109  ..........    -349,109
Avenger System Summary..........................................           0           0      13,000       7,400
    Slew-to-cue.................................................  ..........  ..........      13,000       7,400
Hellfire System Summary.........................................     279,687     228,287     268,987     248,987
    Unused prior year ECO funding...............................  ..........      -5,400  ..........           0
    Reduce Longbow Hellfire production ramp-up..................  ..........     -38,300  ..........     -20,000
    Reduce Longbow ramp-up tooling..............................  ..........      -7,700  ..........           0
    Unobligated prior year funds................................  ..........  ..........     -10,700     -10,700
MLRS Rocket.....................................................       2,863      14,863      19,863      19,863
    MLRS-ER.....................................................  ..........      12,000      17,000      17,000
MLRS Launcher System............................................     102,649     105,649     127,749     125,749
    Transfer to MLRS-ER rockets.................................  ..........     -12,000  ..........     -12,000
    Vehicular Intercommunication System (VIS) upgrades..........  ..........      15,000  ..........      10,000
    Launcher upgrades...........................................  ..........  ..........      25,100      25,100
Army Tactical Missile System (ATACMS)...........................      97,814      97,814      87,044      97,814
    Contract savings............................................  ..........  ..........     -10,770           0
EFOG-M..........................................................  ..........  ..........  ..........      13,300
    Transfer from research and development......................  ..........  ..........  ..........      13,300
Patriot Modifications...........................................      20,825      30,825      20,825      30,825
    GEM +/-.....................................................  ..........      10,000  ..........       8,000
----------------------------------------------------------------------------------------------------------------

        Procurement of Weapons and Tracked Combat Vehicles, Army

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF W&TCV, ARMY                                                                                      
BRADLEY BASE SUSTAINMENT.......................      125,591      240,591      187,991  ...........      220,591
FIELD ARTILLERY AMMUNITION SUPPORT VEH.........  ...........       40,000  ...........           36       40,000
CARRIER, MOD...................................       20,244       28,644       40,244  ...........       40,244
HOWITZER, MED SP FT 155MM M109A6 (MOD).........       18,706       74,706       18,706           36       74,706
IMPROVED RECOVERY VEHICLE (M88 MOD)............       28,601       56,401       14,000           12       32,601
ARMOR MACHINE GUN, 7.62MM M240 SERIES..........  ...........       20,000  ...........  ...........       15,000
GRENADE LAUNCHER, AUTO, 40MM, MK19-3...........  ...........  ...........       13,000  ...........        8,000
MEDIUM MACHINE GUNS (MODS).....................  ...........  ...........       15,000  ...........  ...........
ECONOMIC ASSUMPTIONS...........................  ...........  ...........       -5,000  ...........       -5,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Bradley Base Sustainment....................................      125,591      240,591      187,991      220,591
    A0 to ODS variant for the National Guard................  ...........     +115,000  ...........      +95,000
    Bradley base upgrades...................................  ...........  ...........      +62,400           +0
Carrier, mod................................................       20,244       28,644       40,244       40,244
    M113 night vision driver viewers........................  ...........       +8,400  ...........       +5,000
    Carrier modifications...................................  ...........  ...........      +20,000      +15,000
    (Note: $15,000,000 is only for the competitive                                                              
     procurement of reactive armor)                           ...........  ...........  ...........  ...........
Improved Recovery Vehicle...................................       28,601       56,401       14,000       32,601
    IRV production..........................................  ...........      +27,800  ...........            0
    Program slip............................................  ...........  ...........      -14,601            0
    Engineering change proposals............................  ...........  ...........  ...........       +4,000
    (Note: Senate provided additional funds for ECP's in                                                        
     RDT&E, A)                                                                                                  
----------------------------------------------------------------------------------------------------------------

                    Procurement of Ammunition, Army

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
  PROCUREMENT OF AMMUNITION, ARMY:                                                                              
    CTG, 5.56MM, ALL TYPES.....................       63,588       65,988       63,588  ...........       64,988
    CTG, 7.62MM, ALL TYPES.....................        1,136        7,136        1,136  ...........        4,136
    CTG, .50 CAL. ALL TYPES....................       19,977       20,177       19,977  ...........       20,177
    CTG, 40MM, ALL TYPES.......................       26,203       26,203       33,203  ...........       31,203
    CTG MORTAR 120MM FULL RANGE PRACTICE M931..       24,432       34,432       24,432           59       32,432
    CTG MORTAR 120MM HE M934 W/MO FUZE.........       29,908       38,908       44,908           32       38,908
    CTG MORTAR 120MM ILLUM XM930 W/MTSQ FZ.....  ...........        3,000  ...........  ...........        3,000
    CTG 120MM HEAT-MP-T M830A1.................  ...........       10,000  ...........  ...........        8,000
    CTG TANK 120MM TPCSDS-T M865...............      111,653      124,453      124,353          184      119,353
    CTG ARTY 105MM DPICM XM915.................  ...........       20,000       10,000  ...........       10,000
    PROJ ARTY 155MM HE M795....................  ...........       55,000  ...........  ...........       36,000
    FUZE MULTI OPTION..........................  ...........       20,000       20,000  ...........       15,000
    MINE AT/AP M87 (VOLCANO)...................  ...........  ...........       20,000  ...........       17,000
    BUNKER DEFEATING MUNITION (BDM)............  ...........        8,000  ...........  ...........        8,000
    ROCKET, HYDRA 70, ALL TYPES................       12,067       48,267       48,267  ...........       37,267
    SIMULATORS, ALL TYPES......................        4,573        5,073        4,573  ...........        4,573
    PROVISION OF INDUSTRIAL FACILITIES.........       45,857       24,857       45,857  ...........       24,857
    CONVENTIONAL AMMO DEMILITARIZATION.........      106,118       96,118       93,118  ...........       93,118
    ARMS INITIATIVE............................        5,000        5,000       45,000  ...........       25,000
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........       -6,000  ...........       -6,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                               Budget        House        Senate     Conference 
----------------------------------------------------------------------------------------------------------------
Fuze, multi option........................................            0       20,000        20,000       15,000 
    Electronic timed M767 fuze............................  ...........      +20,000       +20,000      +15,000 
Provision of Industrial Facilities........................       45,857       24,857        45,857       24,857 
    Excess funds..........................................  ...........      -21,000   ...........      -21,000 
    Large caliber deep drawn cartridge....................  ...........       (3,000)  ...........       (3,000)
----------------------------------------------------------------------------------------------------------------

                     Kinetic Energy Tank Ammunition

      The conferees are concerned that there may be a break in 
production between the current 120mm kinetic energy round, the 
M829A2, and the follow-on round, the M829E3. The conferees 
direct the Army to maintain M829A2 future annual production at 
minimum sustaining levels and accelerate the development of the 
M829E3. The conferees direct the Army submit to the 
congressional defense committees their plan for funding M829A2 
production and maintaining the capability to produce kinetic 
energy rounds no later than December 15, 1997.

                        Other Procurement, Army

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget       House        Senate       Qty      Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, ARMY                                                                                         
    TACTICAL TRAILERS/DOLLY SETS.................        8,053        8,053       18,053  .........       13,053
    SEMITRAILER FB BB/CONT TRANS 22\1/2\ T.......        9,361  ...........        9,361        350        2,000
    SEMITRAILER, TANK, 5000G.....................        7,581        3,000        7,581         74        3,000
    SEMITRAILER, TANK, 7500G, BULKHAUL...........       10,408        2,000       10,408        231        3,000
    HI MOB MULTI-PURP WHLD VEH (HMMWV) (MYP).....       66,233      104,933      141,233        774      131,233
    FAMILY OF MEDIUM TACTICAL VEH (MYP)..........      209,446      209,446      253,446      1,506      209,446
    FAMILY OF HEAVY TACTICAL VEHICLES (MYP)......        9,071       87,071      137,071  .........      114,071
    ARMORED SECURITY VEHICLES (COMBAT SPT) TACTIC        9,470       10,970        9,470         25       10,970
    DEFENSE SATELLITE COMMUNICATIONS SYSTEM                                                                     
     (SPAC)......................................       87,643       83,143       87,643  .........       85,643
    SAT TERM, EMUT (SPACE).......................        7,264        6,064        7,264        207        6,064
    NAVSTAR GLOBAL POSITIONING SYSTEM (SPACE)....        6,796        5,596        6,796         17        5,596
    SCAMP (SPACE)................................        4,305       10,405       16,605  .........       16,605
    GLOBAL BRDCST SVC--GBS.......................        4,967  ...........        4,967  .........        4,967
    ARMY DATA DISTRIBUTION SYSTEM (ADDS).........       57,165       57,065       94,465  .........       67,465
    SINCGARS FAMILY..............................      290,164      302,164      290,164  .........      296,164
    ACUS MOD PROGRAM (WIN-T/T)...................       82,391       82,391      115,391  .........      105,391
    COMBAT SURVIVOR EVADER LOCATOR (CSEL)........        5,677  ...........        5,677  .........        5,677
    INFORMATION SYSTEM SECURITY PROGRAM--ISSP....       10,208       10,208       10,208  .........       13,708
    INFORMATION SYSTEMS..........................       20,498       20,498       51,498  .........       51,498
    GENERAL DEFENSE INTELL PROG (GDIP)...........       18,856       19,756       18,856  .........       19,356
    ITEMS LESS THAN $2.0M (INTEL SPT)--TIARA.....  ...........        2,800  ...........  .........        2,800
    ALL SOURCE ANALYSIS SYS (ASAS) (TIARA).......        7,772       26,959        7,772  .........       23,459
    JTT/CIBS-M (TIARA)...........................       11,438       11,438        6,438         56       11,438
    SHORTSTOP....................................  ...........        6,000  ...........  .........        6,000
    SENTINEL.....................................       41,014       51,014       61,214         12       61,214
    NIGHT VISION DEVICES.........................       85,312       99,712      121,312  .........      111,712
    LOGTECH......................................        3,358        3,358        3,358  .........       13,358
    STANDARD INTEGRATED CMD POST SYSTEM..........       26,551       36,551       26,551  .........       33,551
    AUTOMATED DATA PROCESSING EQUIP..............      125,099      151,899      125,099  .........      132,099
    RESERVE COMPONENT AUTOMATION SYS (RCAS)......      114,323      114,323       84,323  .........      114,323
    CALIBRATION SETS EQUIPMENT...................  ...........  ...........       25,000  .........       15,000
    INTEGRATED FAMILY OF TEST EQUIP (IFTE).......  ...........       29,000  ...........  .........       20,000
    COMBAT SUPPORT MEDICAL.......................       11,808       11,808       18,808  .........       18,808
    ITEMS LESS THAN $2.0 MILLION (MAINT EQ)......        1,167        5,167        1,167  .........        4,167
    CRANE, WHEEL MTD, 25T, \3/4\ CU YD, RT.......        6,055        6,055        6,055         22       14,055
    RAILWAY CAR, FLAT, 100 TON...................       17,755  ...........       17,755  .........  ...........
    TRAINING DEVICES, NONSYSTEM..................       49,668       53,668       59,668  .........       53,668
    SIMNET/CLOSE COMBAT TACTICAL TRAINING........       92,968  ...........       71,468  .........       54,600
    BASE LEVEL COM'L EQUIPMENT...................        4,283        4,283       17,283  .........        4,283
    DEPOT MAINTENANCE OF OTHER END ITEMS.........       24,819  ...........       24,819  .........  ...........
    GUN LAYING POSITIONING SYSTEM................  ...........        6,000  ...........  .........        6,000
    RADIO FREQUENCY TECHNOLOGY...................  ...........        2,900  ...........  .........        1,200
    LIGHTWEIGHT LASER DESIGNATOR/RANGE FINDER....  ...........        2,800  ...........  .........  ...........
    COMBAT SYNTHETIC TRAINING ASSESSMENT RANGE...  ...........        5,400  ...........  .........  ...........
    ARMY AIRBORNE COMMAND & CONTROL SYSTEM.......  ...........       11,100  ...........  .........  ...........
    AVENGER SLEW TO CLUE.........................  ...........        7,400  ...........  .........  ...........
    PALLETIZED LOADING SYSTEM ENHANCED...........  ...........        3,000  ...........  .........        3,000
    ECONOMIC ASSUMPTIONS.........................  ...........  ...........      -18,000  .........      -18,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Army Data Distribution System...............................       57,165       57,065       94,465       67,465
    EPLRS...................................................  ...........      +20,000      +37,400      +30,400
    JTIDS--transfer to BMDO.................................  ...........      -20,100  ...........      -20,100
Information Systems Security System.........................       10,208       10,208       10,208       15,780
    KY-100 device...........................................  ...........            0            0       +3,500
    (Note: Earmarked in Senate bill for $5,500,000)                                                             
All Source Analysis System..................................        7,772       26,959        7,772       23,459
    ASAS RWS................................................  ...........      +13,500  ...........      +10,000
    CHATS...................................................  ...........       +5,687  ...........       +5,687
Night Vision Devices........................................       85,312       99,712      131,312      111,712
    AN/PAS-13 thermal weapon sights.........................  ...........      +11,400      +10,000       +6,900
    Lightweight video system................................  ...........       +3,000  ...........       +2,000
    Infrared Aiming Lights (AN/PEQ-2).......................  ...........  ...........       +8,000       +5,500
    AN/PVS-70 systems.......................................  ...........  ...........      +17,000      +11,000
    Bore lights.............................................  ...........  ...........       +1,000       +1,000
    MELIOS..................................................  ...........  ...........  ...........      (5,000)
    (Note: Funds are only to procure MELIOS for the Army                                                        
     National Guard)                                                                                            
LOGTECH.....................................................        3,358        3,358        3,358       13,358
    Army Logistic Automation................................  ...........  ...........  ...........      +10,000
    (Note: Funds transferred from Automated Data Processing                                                     
     Equipment)                                                                                                 
Automated Data Processing Equipment.........................      125,099      151,899      125,099      132,099
    SBIS....................................................  ...........      +13,000  ...........       +7,000
    (Note: Funds transferred to O&M, Army)                                                                      
    Army Logistics Automation...............................  ...........      +13,800  ...........            0
    (Note: Funds transferred to LOGTECH)                                                                        
Crane, Wheel Mtd, 25T,\3/4\ CU YD, RT.......................        6,055        6,055        6,055       14,055
    All terrain cranes......................................  ...........  ...........  ...........       +8,000
    (Note: Funds are only to procure all all-terrain cranes                                                     
     for the Army Reserve)                                                                                      
Radio Frequency Technology..................................            0        2,900            0        1,200
    (Note: $1,700,000 transferred to Research, Development,                                                     
     Test and Evaluation, Army)                                                                                 
Lightweight designator/range finder.........................            0        2,800            0            0
    (Note: Funds transferred to Research, Development, Test                                                     
     and Evaluation, Army)                                                                                      
Combat synthetic training assessment range..................            0        5,400            0            0
    (Note: Funds transferred to Research, Development, Test                                                     
     and Evaluation, Army)                                                                                      
Army Airborne Command & Control System......................            0       11,100            0            0
    (Note: Funds transferred to Research, Development, Test                                                     
     and Evaluation, Army)                                                                                      
    (Note: Funds transferred to Missile Procurement, Army)                                                      
Avenger Slew to Cue.........................................            0        7,400            0            0
----------------------------------------------------------------------------------------------------------------

                   family of medium tactical vehicles

      The conferees strongly support the Army's Family of 
Medium Tactical Vehicle (FMTV) acquisition strategy. The 
conferees endorse the Army's plan to continue procuring FMTV's 
from the current producer while qualifying a second source in 
fiscal year 1998 and 1999. The conferees agree to provide the 
authority in Section 8008 to enter into a multiyear contract 
for the FMTV.

         commander's tactical terminal/joint tactical terminal

      The conferees agree that the amounts appropriated in 
fiscal year 1998 and prior year funds be used to re-award the 
Joint Tactical Terminal (JTT) contract and to procure only 
urgently needed Commander's Tactical Terminals (CTT) in fiscal 
year 1998 until the production under a new contract progresses 
sufficiently to minimize the fielding gap between these two 
terminals.

          direct support electrical systems test sets (dsests)

      The conferees encourage the Department of Defense to 
include DSESTS in the automatic test equipment family.

                       Aircraft Procurement, Navy

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget       House        Senate       Qty      Conference
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, NAVY:                                                                                     
    AV-8B (V/STOL) HARRIER.......................      277,648      310,648      283,890         12      283,890
    AV-8B (V/STOL) HARRIER (AP-CY)...............       18,914       18,914       17,900  .........       17,900
    V-22 (MEDIUM LIFT)...........................      472,007      661,307      627,007          7      627,007
    V-22 (MEDIUM LIFT) (AP-CY)...................       69,659       69,659       62,124  .........       62,124
    E-2C (EARLY WARNING) HAWKEYE.................      236,474      304,474      236,474          4      304,474
    CH-60 HELICOPTER.............................  ...........  ...........  ...........          2       30,400
    CH-60 HELICOPTER (AP-CY).....................       31,837       31,837  ...........  .........  ...........
    T-45TS (TRAINER) GOSHAWK.....................      243,960      243,960      291,899         15      289,383
    KC-130J......................................  ...........      179,700  ...........          2      120,000
    EA-6 SERIES..................................       86,783      169,783      126,783  .........      116,783
    F-14 SERIES..................................      290,500      290,500      275,200  .........      287,200
    F-18 SERIES..................................      156,213      156,213      140,713  .........      164,713
    H-53 SERIES..................................       35,704       35,704       45,704  .........       45,704
    H-1 SERIES...................................       18,489       16,389       18,489  .........       18,389
    P-3 SERIES...................................      164,907      293,907      226,307  .........      238,207
    E-2 SERIES...................................       49,073       50,673       85,210  .........       49,073
    CARGO/TRANSPORT A/C SERIES...................       29,911       29,911       20,911  .........       25,911
    SPECIAL PROJECT AIRCRAFT.....................       16,527       16,527       23,527  .........       23,527
    POWER PLANT CHANGES..........................       13,972       13,972       15,572  .........       15,572
    COMMON AVIONICS CHANGES......................      131,599      130,599      117,439  .........      130,399
    COMMON GROUND EQUIPMENT......................      287,114      274,114      287,114  .........      274,114
    ECONOMIC ASSUMPTIONS.........................  ...........  ...........      -44,000  .........      -44,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
T-45........................................................      243,960      243,960      291,899      289,383
    Additional aircraft.....................................  ...........  ...........      +96,600      +53,000
    Multiyear procurement savings...........................  ...........  ...........      -51,084            0
    Peculiar training equipment.............................  ...........  ...........      +10,000            0
    Engineering change orders...............................  ...........  ...........       -3,728       -3,728
    Engine contract award savings...........................  ...........  ...........       -3,849       -3,849
EA-6B Series................................................       86,783      169,783      126,783      116,783
    Center wing sections....................................  ...........      +50,000      +25,000      +25,000
    Late obligations........................................  ...........  ...........      -10,000      -10,000
    Engine turbine blade....................................  ...........      +18,000            0            0
    USQ-113 receiver........................................  ...........      +15,000            0      +15,000
    Support jamming upgrade.................................  ...........            0      +25,000            0
F-14 Series.................................................      290,500      290,500      275,200      287,200
    Critical systems mod....................................  ...........  ...........       -3,300       -3,300
    LANTIRN.................................................  ...........  ...........      -12,000            0
F-18 Series.................................................      156,213      156,213      140,713      164,713
    Late obligations........................................  ...........  ...........      -15,500      -15,500
    Mods for Naval Reserve..................................  ...........  ...........  ...........      +24,000
H-1 Series..................................................       18,489       16,389       18,489       18,389
    Transfer to R&D.........................................  ...........       -5,600  ...........       -5,600
    Internal rescue hoist...................................  ...........       +3,500  ...........       +3,500
    AN/AAQ-22...............................................  ...........  ...........  ...........       +2,000
P-3 Series..................................................      164,907      293,907      226,307      238,207
    SRP.....................................................  ...........      +35,100      +25,100      +25,000
    AIP.....................................................  ...........      +56,600      +17,300      +17,300
    SEI.....................................................  ...........      +18,500            0      +13,000
    LESPA...................................................  ...........       +6,000      +11,000       +8,000
    Replacement data storage system.........................  ...........      +12,800       +8,000      +10,000
Common Avionics Changes.....................................      131,599      130,599      117,439      130,399
    AAW-13..................................................  ...........       +9,000  ...........       +6,000
    Authorization reduction.................................  ...........      -10,000  ...........            0
    Late obligations........................................  ...........  ...........      -10,000      -10,000
    Ground proximity warning system.........................  ...........  ...........  ...........       +4,000
    Systems engineering growth..............................  ...........  ...........       -1,200       -1,200
----------------------------------------------------------------------------------------------------------------

                           CH-60 Helicopters

      The conferees agree to provide $30,400,000 only to 
procure 2 CH-60 helicopters for the Naval Reserve.

                         AV-8B Harrier Engines

      The conferees recognize the need to replace engines in 
AV-8B Harrier trainer aircraft, and would welcome a 
reprogramming request from the Department of Defense should it 
elect to address this requirement in fiscal year 1998.

                                  P-3

      The conferees are disturbed by the Navy's approach to 
budgeting for the P-3 Sustained Readiness Program (SRP). The 
conferees direct the Navy to budget for the purchase of no less 
than 20 SRP kits and for the installation of 15 SRP kits in 
fiscal year 1999, in order to obtain best value for the 
Department of Defense in accordance with the Variation in 
Quantity contract signed by the Navy.

                       Weapons Procurement, Navy

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                          Budget       House      Senate      Qty.    Conference
----------------------------------------------------------------------------------------------------------------
WEAPONS PROCURMENT, NAVY                                                                                        
    TRIDENT II........................................     292,248     292,248     227,248         5     227,248
    TRIDENT II (AP-CY)................................      47,021      32,021      47,021        --      47,021
    TOMAHAWK..........................................      51,820      51,820      71,820        65      51,820
    ESSM..............................................      15,529       5,529      15,529        --      10,529
    JSOW..............................................      58,665      68,665      58,665       113      63,665
    STANDARD MISSILE..................................     196,492     181,092     196,492       127     181,092
    PENGUIN...........................................          --          --      15,000        --       7,500
    AERIAL TARGETS....................................      72,923      65,923      66,723        --      65,923
    HELLFIRE..........................................          --      37,500          --        --      20,000
    STANDARD MISSILES MODS............................      35,601      68,601      50,901        --      50,901
    WEAPONS INDUSTRIAL FACILITIES.....................      34,932      25,932      34,932        --      30,432
    CIWS MODS.........................................       9,990      29,990      24,990        --      24,990
    5/54 GUN MOUNT MODS...............................         241         241      13,241        --      10,241
    PIONEER...........................................       3,962       3,962       6,962        --       6,962
    SPARES AND REPAIR PARTS...........................      26,943      21,943      26,943        --      21,943
    ECONOMIC ASSUMPTIONS..............................          --          --      -8,000        --      -8,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousand of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Trident II......................................         292,248         292,248         227,248         227,248
    Missile reduction...........................  ..............  ..............         -65,000         -65,000
Trident II (AP-CY)..............................          47,021          32,021          47,021          47,021
    Excess long lead funding....................  ..............         -15,000  ..............               0
ESSM............................................          15,529           5,529          15,529          10,529
    Premature tooling...........................  ..............         -10,000  ..............          -5,000
JSOW............................................          58,665          68,665          58,665          63,665
    Additonal weapons...........................  ..............          10,000  ..............           5,000
Standard Missile................................         196,492         181,092         196,492         181,092
    Transfer Navy Lower Tier to Procurement, DW.  ..............         -15,400  ..............         -15,400
Aerial Targets..................................          72,923          65,923          66,723          65,923
    Reduced requirements........................  ..............          -7,000  ..............          -7,000
    Reduction...................................  ..............  ..............          -6,200               0
Standard Missile Mods...........................          35,601          68,601          50,901          50,901
    SM-2 Block IIIB.............................  ..............          33,000          15,300          15,300
CIWS Mods.......................................           9,990          29,990          24,990          24,990
    Surface mode IB.............................  ..............          20,000  ..............          15,000
    Block I upgrade.............................  ..............  ..............          15,000               0
5/54 Gun Mount Mods.............................             241             241          13,241          10,241
    Ordalt kits.................................  ..............  ..............          13,000          10,000
Pioneer.........................................           3,962           3,962           6,962           6,962
    CARS........................................  ..............  ..............           3,000           3,000
    [Funds provided for logistics are intended                                                                  
     to support all Common Automatic Recovery                                                                   
     Systems (CARS) throughout DoD.]                                                                            
Spares and Repair Parts.........................          26,943          21,943          26,943          21,943
    Unobligated prior year funds................  ..............          -5,000  ..............          -5,000
----------------------------------------------------------------------------------------------------------------

                                tomahawk

      The budget request includes $51,820,000 to procure 65 
Block III Tomahawk missiles in fiscal year 1998. The Navy has 
recently informed the conferees that it is working on a 
proposal to develop and produce a new variant of this missile, 
to be known as the Tactical Tomahawk or the Block IV+. It would 
be the Navy intention to forgo the procurement of the 65 Block 
III Tomahawks in fiscal year 1998 and use these funds, in part, 
for the accelerated development of the new Block IV+. While the 
conferees support a program to upgrade the capabilities of the 
Tomahawk missile and reducing the missile's unit cost, there 
remains many acquisition and funding issues to be resolved 
before favorable consideration of the proposed funding 
realignment can be granted. The conferees encourage the Navy to 
submit a reprogramming action once these issues are resolved.

                      5/54 gun mount modifications

      The conferees agree to provide $13,241,000 for the 
procurement of gun safety, shock hardening, and fire support 
Ordalts kits for the 5 inch MK-45 and MK-75 gun mounts.

                     weapons industrial facilities

      The conferees agree to provide $30,432,000 for capital 
rehabilitation projects at government-owned, contractor 
operated plants for Navy missile systems, a reduction of 
$4,500,000 from the budget request. The conferees direct that 
none of the reduction may be applied to the amounts requested 
in the budget for facilities restoration at the Allegheny 
Ballistics Laboratory.

            Procurement of Ammunition, Navy and Marine Corps

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate           Qty.         Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, NAVY                                                                                 
 & MARINE CORPS                                                                                                 
    PRACTICE BOMBS..............          41,766          56,766          41,766  ..............          51,766
    5 INCH/54 GUN AMMUNITION....          27,669          60,169          27,669  ..............          50,169
    20MM PGU-28.................  ..............           3,500  ..............  ..............           1,750
    5.56 MM, ALL TYPES..........          33,000          36,000          33,000  ..............          36,000
    7.62 MM, ALL TYPES..........           2,900           8,900           2,900  ..............           5,900
    LINEAR CHARGES, ALL TYPES...           2,290          17,290           2,290  ..............           9,790
    40 MM, ALL TYPES............           5,701          10,701           5,701  ..............           7,201
    FUZE, ET, XM762.............  ..............           7,000  ..............  ..............           3,500
    ROCKETS, ALL TYPES..........          15,047          15,047          25,047  ..............          25,047
    ECONOMIC ASSUMPTIONS........  ..............  ..............          -2,000  ..............          -2,000
----------------------------------------------------------------------------------------------------------------

                   Shipbuilding and Conversion, Navy

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate           Qty.         Conference  
----------------------------------------------------------------------------------------------------------------
SHIPBUILDING & CONVERSION, NAVY                                                                                 
    ADVANCED PROCUREMENT/                                                                                       
     CONSTRUCTION CVN-77........  ..............  ..............         345,000  ..............          50,000
    CVN REFUELING OVERHAULS.....       1,615,003       1,628,403       1,615,003               1       1,615,003
    CVN REFUELING OVERHAULS (AP-                                                                                
     CY)........................          92,855          46,855          92,855  ..............          46,855
    DDG-51......................       2,665,767       2,695,367       3,385,767               4       3,411,200
    LPD-17 (AP-CY)..............  ..............         185,000  ..............  ..............         100,000
    OCEANOGRAPHIC SHIPS (AP-CY).  ..............  ..............          73,000  ..............          16,000
    LCAC LANDING CRAFT..........  ..............          24,000          17,300  ..............          20,000
    OUTFITTING..................          28,140          21,140          24,140  ..............          21,140
    POST DELIVERY...............          90,177          81,177          83,177  ..............          81,177
    ECONOMIC ASSUMPTIONS........  ..............  ..............         -72,000  ..............         -72,000
----------------------------------------------------------------------------------------------------------------

                        cvn refueling overhauls

      The conferees agree to provide $1,615,003,000 for complex 
overhaul of the U.S.S. Nimitz (CVN-68). Within that amount, 
$20,000,000 is only for installation of the ship self-defense 
system. The conferees do not agree to bill language proposed by 
the House concerning overhaul of CVN-69, which is no longer 
necessary since the Navy has committed to include ship self-
defense and cooperative engagement capability as part of the 
overhaul of the ship.

                                 ddg-51

      The conferees agree to provide $3,411,200,000 for 4 
ships. This includes: increases of $720,000,000 for another 
ship, $15,233,000 for acceleration of baseline 6 hardware and 
software for theater ballistic missile defense, and $14,000,000 
only for installation of cooperative engagement capability on 1 
ship; and a decrease of $3,800,000 resulting from saving due to 
foreign military sale of Aegis equipment. The conferees do not 
agree to bill language proposed by the House concerning theater 
ballistic missile defense, but direct the Navy to include 
cooperative engagement capability and theater ballistic missile 
defense capability on a significant number of the DDG-51 ships 
to be procured under a 14 ship multiyear contract.

                           cruiser conversion

      The conferees agree to the House report language 
endorsing the Navy plan to compete conversion of its 27 Aegis 
cruisers. This direction does not supersede current Navy policy 
concerning homeport overhauls.

                      lcac service life extension

      The conferees agree to provide $20,000,000 and concur 
with the House report language. Since this program will extend 
the original capital investment in these craft in lieu of 
replacement, the conferees direct the Navy to use Shipbuilding 
and Conversion for all elements of the service life extension 
program.

                        Other Procurement, Navy

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                            Budget     House      Senate      Qty     Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, NAVY                                                                                         
    LM-2500 GAS TURBINE.................................      7,548      5,548      7,548  .........       5,548
    OTHER NAVIGATION EQUIPMENT..........................     31,552     39,052     49,552  .........      42,052
    FIREFIGHTING EQUIPMENT..............................     14,081     27,081     14,081  .........      19,081
    POLLUTION CONTROL EQUIPMENT.........................    156,775    147,775    135,775  .........     135,775
    SUBMARINE BATTERIES.................................      9,043      8,443      9,043  .........       8,443
    STRATEGIC PLATFORM SUPPORT EQUIP....................      6,435     21,435      6,435  .........      21,435
    REACTOR COMPONENTS..................................    193,880    180,880    193,880  .........     180,880
    RADAR SUPPORT.......................................      1,708     23,708     10,708  .........      23,708
    AN/SQQ-89 SURF ASW COMBAT SYSTEM....................     16,628     16,228     16,628  .........      16,228
    SSN ACOUSTICS.......................................     77,953     46,453     85,953  .........      85,953
    SURFACE SONAR WINDOWS AND DOME......................  .........      6,000  .........  .........       6,000
    C-3 COUNTERMEASURES.................................      6,891      6,591      6,891  .........       6,591
    COMBAT DF...........................................     10,473      5,873     10,473  .........       5,873
    BATTLE GROUP PASSIVE HORIZON EXTEN..................     50,221     47,421     50,221  .........      47,421
    NAVY TACTICAL DATA SYSTEM...........................     14,335     24,335     26,335  .........      25,335
    COOPERATIVE ENGAGEMENT CAPABILITY...................  .........    114,800  .........  .........      75,000
    JMCIS AFLOAT........................................     22,403     22,403     34,403  .........      28,403
    NAVAL TACTICAL COMMAND SUPPORT SYSTEM (NTCSS).......     49,710     49,710     92,910  .........      80,710
    ATDLS...............................................     16,991     15,391     16,991  .........      15,391
    SHALLOW WATER MCM...................................  .........  .........     10,000  .........      10,000
    AUTOMATIC CARRIER LANDING SYSTEM....................     13,200     12,200     13,200  .........      12,200
    ID SYSTEMS..........................................     11,293      9,193     11,293  .........       9,193
    JMCIS TACTICAL/MOBILE...............................      2,888     47,888      2,888  .........      37,888
    CALIBRATION STANDARDS...............................      2,075      2,075     20,075  .........      12,075
    SHIP COMMUNICATIONS AUTOMATION......................     25,799     25,799     49,799  .........      29,799
    SUBMARINE COMMUNICATIONS EQUIPMENT..................     37,239     47,239     37,239  .........      45,239
    SATCOM SHIP TERMINALS (SPACE).......................    107,608    107,608    122,808  .........     109,608
    NSIPS...............................................  .........     20,500  .........  .........      20,500
    JEDMICS.............................................  .........      5,000  .........  .........       5,000
    NAVAL SHORE COMMUNICATIONS..........................     72,465     72,465     96,465  .........     101,465
    INFO SYSTEMS SECURITY PROGRAM (ISSP)................     31,667     31,667     39,667  .........      34,667
    AN/SSQ-36 (BT)......................................      1,402      2,902      1,402  .........       1,752
    AN/SSQ-53 (DIFAR)...................................     28,382     49,382     47,382  .........      47,382
    AN/SSQ-57...........................................  .........      4,500  .........  .........         500
    AN/SSQ-62 (DISCASS).................................     24,291     32,291     31,291  .........      31,291
    WEAPONS RANGE SUPPORT EQUIPMENT.....................      4,858     14,358      4,858  .........      10,858
    AVIATION LIFE SUPPORT...............................     15,345     12,645     15,345  .........      12,645
    AIRBORNE MINE COUNTERMEASURES.......................     20,192     27,692     20,192  .........      27,692
    LAMPS MK III SHIPBOARD EQUIPMENT....................      5,805      4,560      5,805  .........       4,560
    NATO SEASPARROW.....................................      6,866     10,866     14,866  .........      12,866
    SHIP SELF DEFENSE SYSTEM............................      5,841     17,841      5,841  .........      17,841
    AEGIS SUPPORT EQUIPMENT.............................     26,813     21,113     26,813  .........      21,113
    SURFACE TOMAHAWK SUPPORT EQUIPMENT..................     65,502     65,302     65,502  .........      65,302
    STRATEGIC MISSILE SYSTEMS EQUIP.....................    231,528    228,728     61,528  .........     228,728
    ANTI-SHIP MISSILE DECOY SYSTEM......................     24,696     24,696     33,696  .........      33.696
    SURFACE TRAINING DEVICE MODS........................      4,829     13,329      4,829  .........       8,829
    CONSTRUCTION & MAINTENANCE EQUIP....................      3,700      5,200      3,700  .........       5,200
    AMPHIBIOUS EQUIPMENT................................      6,233     11,233      6,233  .........       9,233
    POLLUTION CONTROL EQUIPMENT.........................     28,650     25,080     25,050  .........      25,050
    COMMAND SUPPORT EQUIPMENT...........................     15,915     17,915     15,915  .........      17,915
    PORT SECURITY UNIT EQUIPMENT........................  .........  .........     13,500  .........      13,500
    INTELLIGENCE SUPPORT EQUIPMENT......................     22,449     22,749     22,449  .........      22,449
    ENVIRONMENTAL SUPPORT EQUIPMENT.....................     15,678     15,678     21,678  .........      21,678
    ECONOMIC ASSUMPTIONS................................  .........  .........    -19,000  .........     -19,000
    UNDISTRIBUTED REDUCTION.............................  .........  .........    -33,000  .........  ..........
----------------------------------------------------------------------------------------------------------------

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                       Budget     House      Senate   Conference
----------------------------------------------------------------------------------------------------------------
Other Navigation Equipment.........................................     31,552     39,052     49,552      42,052
    WSN-7..........................................................  .........     +9,000    +18,000     +12,000
    Contract savings...............................................  .........     -1,500  .........      -1,500
Navy Tactical Data System..........................................     14,335     24,335     26,335      25,335
    Emulators......................................................  .........  .........    +12,000      +6,000
    UYQ-70/cruisers................................................  .........    +10,000  .........      +5,000
----------------------------------------------------------------------------------------------------------------

                      Port Security Unit Equipment

      The conferees agree to provide $13,500,000 only for port 
security unit equipment for the Coast Guard.

                      Joint U.S./U.K. SSTD Program

      The conferees note that the Department of Defense has 
commissioned an independent study to review the Surface Ship 
Torpedo Defense (SSTD) program. The conferees note that a joint 
U.S./U.K. collaborative SSTD program has been under way since 
1988 on a 50/50 cost share basis. Until the findings of the 
independent study are reported and acted upon, the conferees 
direct the Department of Defense to continue the joint U.S./
U.K. collaborative program.

                    Choke Point Surveillance System

      The conferees understand that the Choke Point 
Surveillance System (CPSS), in conjunction with forces ashore 
and land attack missile capable ships, can provide a real-time 
integrated surveillance and targeting system. The conferees 
direct the Navy to investigate the possible funding and 
incorporation of CPSS into future weapon system plans and to 
provide a report to the Appropriations Committees of the House 
and Senate prior to submission of the fiscal year 1999 budget 
on its recommendations regarding the CPSS program.

                       Navy Tactical Data System

      The conferees agree to provide $25,000,000 for the Navy 
Tactical Data System. Within that amount $5,000,000 is only to 
install AN/UYQ-70 full production workstations on Aegis 
cruisers for execution only by the Navy's Tactical Embedded 
Computer Resources office.

                                 IT-21

      The Secretary of the Navy shall report to the Committees 
on Appropriations that funds allocated for IT-21 implementation 
will be spent in accordance with the letter and spirit of the 
Federal Acquisition Regulation and meet the requirements for 
security, scalability, network management, real time 
processing, and reliability as outlined in the Joint Technical 
Architecture.

                                JEDMICS

      The Joint Engineering Data Management Information and 
Control System (JEDMICS) requires the incorporation of a 
security solution in order to prevent unauthorized access, as 
required by National Security Policy and federal regulations. 
To meet near term and future requirements the security system 
must be a Ratings and Maintenance Phase derivative of a product 
evaluated at the National Security Agency (NSA) B2 level for 
Information Security; meet NSA's Communications Security 
requirements for encryption of information from user desktop to 
JEDMICS servers; provide true multilevel security at the 
network level; and be a product of US origin. Therefore, the 
conferees provide $5,000,000 in Other Procurement, Navy to be 
used only to procure and integrate into JEDMICS a security 
system meeting the above requirements. Due to the critical 
nature of JEDMICS, the conferees expect the Department to 
execute a contract as soon as practicable.

                       Procurement, Marine Corps

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                            Budget     House      Senate      Qty     Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, MARINE CORPS                                                                                       
    ITEMS UNDER $2.0 MILLION (TRKD VEH).................         99      1,999         99  .........       1,999
    INTELLIGENCE SUPPORT EQUIPMENT......................     16,413     21,805     16,413  .........      21,805
    GENERAL PURPOSE MECHANICAL TMDE.....................      2,179      2,179     22,179  .........      17,179
    NIGHT VISION EQUIPMENT..............................  .........  .........      7,000  .........       7,000
    COMM & ELEC INFRASTRUCTURE SUPPORT..................     41,809     84,409     66,609  .........      66,609
    5/4T TRUCK HMMWV (MYP)..............................        696     40,696        696  .........      30,696
    FIELD MEDICAL EQUIPMENT.............................      1,081     11,081      1,081  .........      11,081
    ECONOMIC ASSUMPTIONS................................  .........  .........     -3,000  .........      -3,000
----------------------------------------------------------------------------------------------------------------

                    Aircraft Procurement, Air Force

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, AIR FORCE                                                                                 
    B-2A............................................     174,086     505,286     157,786  ..........     331,000
    ADVANCED TACTICAL FIGHTER (AP-CY)...............      80,864      74,864  ..........  ..........      74,864
    F-15A...........................................     159,000     159,000     259,800           5     226,300
    F-16 C/D (MYP)..................................  ..........      82,500  ..........           3      82,500
    C-17 (MYP)......................................   1,923,311   1,914,211   2,341,811           9   1,901,611
    C-17 (MYP) (AP-CY)..............................     278,200     265,600     278,200  ..........     278,200
    EC-130J.........................................  ..........      49,900  ..........           1      49,900
    C-130J..........................................      49,928      49,928      48,000  ..........      24,000
    WC-130J.........................................  ..........  ..........     177,000           2     132,850
    CIVIL AIR PATROL A/C............................       2,645       4,498       2,645          27       3,045
    SMALL VCX (C-37)................................  ..........  ..........       6,000           1       6,000
    LARGE VCX (C-32A)...............................     190,116     190,116  ..........           2     190,116
    E-8C............................................     313,991     317,991     309,291           1     313,291
    PREDATOR UAV....................................     116,506     146,506     116,506           1     141,506
    B-1B MODS.......................................     114,245     138,245      96,845  ..........     114,245
    B-52 MODS.......................................      28,907      31,807      39,307  ..........      39,307
    F-15 MODS.......................................     169,568     157,068     197,568  ..........     181,368
    F-16 MODS.......................................     216,158     199,358     232,058  ..........     220,158
    C-130 MODS......................................      94,511     119,211      94,511  ..........     119,211
    E-3 MODS........................................     134,659     134,659     123,559  ..........     132,159
    PASSENGER SAFETY MODIFICATIONS..................  ..........  ..........      75,000  ..........      50,000
    DARP MODS.......................................      67,136     139,136     163,736  ..........     150,136
    F-15 POST PROD SUPP.............................       8,089       6,289       8,089  ..........       6,289
    F-16 POST PROD SUPP.............................      22,402      22,402      22,402  ..........      38,402
    WAR CONSUMABLES.................................      67,565      60,165      67,565  ..........      63,565
    MISC PRODUCTION CHARGES.........................     275,804     269,583     267,012  ..........     275,804
    DARP............................................     141,493     146,493     141,493  ..........     170,493
    ECONOMIC ASSUMPTIONS............................  ..........  ..........     -37,000  ..........     -37,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                           Budget         House        Senate       Conference  
----------------------------------------------------------------------------------------------------------------
B-2A..................................................       174,086       505,286       157,786        331,000 
    Restart B-2 production............................  ............       331,200  ............  ..............
    Increased other Government costs..................  ............  ............       -10,100  ..............
    Engineering Change Order growth...................  ............  ............        -6,200  ..............
    Increase..........................................  ............  ............  ............        156,914 
F-22 Advanced Tactical Fighter (AP-CY)................        80,864        74,864             0         74,864 
    Transfer OPP funds to RDTEAF......................  ............        -6,000  ............         -6,000 
    Delay F-22 production.............................  ............  ............       -80,864              0 
F-15A.................................................       159,000       159,000       259,800        226,300 
    Attrition reserve aircraft........................  ............  ............       100,800         67,300 
F-16 C/D (MYP)........................................             0        82,500             0         82,500 
    Attrition reserve aircraft........................  ............        82,500  ............         82,500 
C-17 (MYP)............................................     1,923,311     1,914,211     2,341,811      1,901,611 
    Expiring funds....................................  ............        -9,100  ............              0 
    Additional aircraft...............................  ............  ............       440,200              0 
    Late obligations and favorable contract                                                                     
     negotiation......................................  ............  ............       -21,700        -21,700 
C-17 (MYP)(AP-CY).....................................       278,200       265,600       278,200        278,200 
    Contract savings..................................  ............       -12,600  ............              0 
C-130J................................................        49,928        49,928        48,000         24,000 
    One C-130J (shifted to NGRE account)..............  ............  ............       -49,928        -49,928 
    C-130J spares and logistics.......................  ............  ............        48,000         24,000 
WC-130J...............................................  ............  ............       177,000        132,850 
    Additional Aircraft...............................  ............  ............       177,000        118,000 
    Spares/Support Equipment..........................  ............  ............  ............         14,850 
Large VCX (C-32A).....................................       190,116       190,116             0        190,116 
    Convert 2 aircraft purchase to lease..............  ............  ............      -190,116              0 
E-8C..................................................       313,991       317,991       309,291        313,291 
    Rephased prior year requirements..................  ............        16,000  ............         16,000 
    Improved Data Modem...............................  ............         1,000  ............          1,000 
    Excess Engineering Change Order funding...........  ............       -13,000  ............        -13,000 
    Systems engineering growth........................  ............  ............        -4,700         -4,700 
PREDATOR UAV..........................................       116,506       146,506       116,506        141,506 
    Additional funding to purchase attrition vehicles                                                           
     and spare parts..................................  ............        30,000  ............         25,000 
B-1B Mods.............................................       114,245       138,245        96,845        114,245 
    Link 16...........................................  ............        24,000  ............              0 
    Block D modification concurrency..................  ............  ............       -17,400              0 
B-52 Mods.............................................        28,907        31,807        39,307         39,307 
    Electro-optical viewing system....................  ............         2,900  ............              0 
    Increase..........................................  ............  ............        10,400         10,400 
F-15 Mods.............................................       169,568       157,068       197,568        181,368 
    Terminated upgrades...............................  ............       -11,800  ............         -5,000 
    APG-63 radar upgrade pricing......................  ............       -13,500  ............              0 
    [APG-63 radar funds provided without restriction                                                            
     or reporting requirements]                                                                                 
    Radar support equipment...........................  ............       -10,000  ............              0 
    F-100-220E engine upgrade.........................  ............        22,800        22,800         12,800 
    MIDS fighter data link terminals..................  ............  ............         5,200          4,000 
F-16 Mods.............................................       216,158       199,358       232,058        220,158 
    GPS...............................................  ............       -13,000  ............        -13,000 
    Block 40 night vision imaging system..............  ............        -3,800  ............              0 
    HARM targeting system upgrades....................  ............  ............         3,500          3,000 
    600 gallon fuel tanks.............................  ............  ............        10,000          8,000 
    Late obligations..................................  ............  ............       -12,600         -6,000 
    Digital Terrain System............................  ............  ............        15,000         12,000 
    OBOGS.............................................  ............  ............  ............         (1,080)
C-130 Mods............................................        94,511       119,211        94,511        119,211 
    EC-130 mod........................................  ............        24,700  ............         24,700 
E-3 Mods..............................................       134,659       134,659       123,559        132,159 
    Extend sentry computers and display concurrency...  ............  ............        -8,600              0 
    Offensive counter air change orders...............  ............  ............        -2,500         -2,500 
Passenger Safety Modifications........................             0             0        75,000         50,000 
    Navigation safety.................................  ............  ............        75,000         32,500 
    GATM..............................................  ............  ............  ............         17,500 
    [Conferees encourage use of COTS/NDI equipment to                                                           
     satisfy GATM requirements]                                                                                 
H-1 Mods..............................................         2,778         3,578         3,578          3,578 
    Oil debris detection system.......................  ............           800           800            800 
DARP MODS.............................................        67,136       139,136       163,736        150,136 
    MWIR Trf..........................................  ............        20,000  ............          5,600 
    RJ Sensors........................................  ............             0  ............         35,000 
    RJ Reengining.....................................  ............        52,000        52,600         27,400 
    RJ Heaters........................................  ............  ............         6,000          6,000 
    SR-71 Mods........................................  ............  ............         9,000          9,000 
    U-2 Senior Glass..................................  ............  ............        24,000              0 
    U-2 SYERS.........................................  ............  ............         5,000              0 
F-16 Post Production Supp.............................        22,402        22,402        22,402         38,402 
    F-16 Improved Avionics Intermediate Shop for Air                                                            
     National Guard...................................  ............  ............  ............         16,000 
F-15 Post Prod Supp...................................         8,089         6,289         8,089          6,289 
    F-15 tooling disposition..........................  ............        -1,800  ............         -1,800 
War Consumables.......................................        67,565        60,165        67,565         63,565 
    Towed decoy engineering change orders.............  ............        -7,400  ............         -4,000 
Misc Production Charges...............................       275,804       269,583       267,012        275,804 
    Podded electro-optical camera systems.............  ............        -6,221  ............              0 
    Reduction.........................................  ............  ............        -8,792              0 
DARP..................................................       141,493       146,493       141,493        170,493 
    U-2 Senior Glass..................................  ............  ............  ............         24,000 
    U-2 SYERS.........................................  ............  ............  ............          5,000 
----------------------------------------------------------------------------------------------------------------

                                  B-2

      The conferees provide $331,000,000 for B-2 procurement 
for long-lead activities related to the procurement of 
additional B-2s or for upgrades to the existing B-2 force to 
improve mission capabilities, deployability, and 
maintainability.
      The conferees recognize that significant disagreement 
exists on the question of continued low-rate production of 
additional B-2 stealth bombers. The conferees believe the 
question over whether to continue with low-rate B-2 production 
is a critical national security matter which must be decided on 
the basis of future national security requirements, projected 
threats, and affordability. Therefore, the conferees have 
included a general provision (Section 8131) establishing a 
panel to review and make recommendations on this matter. The 
panel shall report to the President and Congress no later than 
March 1, 1998 its conclusions and recommendations, including 
whether additional funds for the B-2 should be used for 
continued low-rate production of the B-2 or for upgrades to 
improve deployability, survivability and maintainability.

                                  F-22

      The conferees agree with the House direction regarding F-
22 Out Of Production Parts (OPPs). The conferees further agree 
that the authority provided in that direction applies only to 
the F-22. The conferees direct the military departments to seek 
the prior approval of the congressional defense committees to 
gain similar authority for other programs.

                           F-16 modifications

      The conferees direct that all new production F-16 
aircraft shall include On-Board Oxygen Generating Systems 
(OBOGS), including the six aircraft approved in fiscal year 
(FY) 1997. The conferees further direct that $1,080,000 within 
the F-16 Modifications line shall be available only to make the 
necessary production changes to incorporate OBOGS in new 
production F-16's.
      The conferees support the Air Force's planned four-year 
OBOGS installation program for F-16's scheduled to start no 
later than fiscal year 2001, and the plan should include field 
installation.

                 air combat training--rangeless (act-r)

                 kadena interim training system (kits)

      The conferees are aware of a new air combat training 
capability recently delivered to Kadena Air Base, Okinawa. The 
Kadena Interim Training System (KITS) provides a new rangeless 
or untethered capability allowing it to be used on aircraft for 
air combat training anywhere there is available training 
airspace over land or sea. The conferees believe that systems 
like KITS can provide improvements to the readiness of our 
forward deployed forces. The conferees direct the Air Force to 
review and evaluate KITS as it applies to immediate air combat 
training requirements throughout the active and reserve 
component air forces and to submit a report to the 
Appropriations Committees on its procurement and fielding plans 
for this system.

                     Missile Procurement, Air Force

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty.      Conference
----------------------------------------------------------------------------------------------------------------
MISSILE PROCEDURE, AIR FORCE                                                                                    
    HAVE NAP...................................  ...........  ...........       39,000  ...........       25,000
    JOINT STANDOFF WEAPON......................        1,139       30,139        1,139  ...........       20,139
    AMRAAM.....................................      117,768      107,168       76,668          173      107,168
    AGM-130 POWERED GBU-15.....................        1,539       42,539        1,539  ...........       25,000
    CONVENTIONAL ALCM..........................  ...........       15,300  ...........  ...........  ...........
    AGM-88A HARM...............................  ...........  ...........        9,600  ...........        9,600
    AGM-65 MAVERICK............................  ...........       11,000  ...........  ...........        8,000
    GLOBAL POSITIONING (MYP) SPACE.............      163,837      122,137      163,837            3      163,837
    TITAN SPACE BOOSTERS SPACE.................      555,304      473,304      455,304  ...........      464,304
    MEDIUM LAUNCH VEHICLE SPACE................      165,783      147,783      165,783            4      156,783
    DEFENSE SUPPORT PROGRAM (MYP) SPACE........      113,708      108,708      113,708  ...........      108,708
    SPECIAL PROGRAMS...........................      773,400      597,400      737,900  ...........      658,400
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........      -18,000  ...........      -18,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
AMRAAM......................................................      117,768      107,168       76,668      107,168
    Excess engineering change order funding.................  ...........      -10,600  ...........      -10,600
    Contractor overcharging.................................  ...........  ...........      -41,100            0
----------------------------------------------------------------------------------------------------------------

                    global positioning system (gps)

      The conferees agree to provide $163,837,000 for the 
acquisition of three satellites in fiscal year 1998. The 
conferees agree that while the Air Force is procuring GPS 
satellites well in advance of their actual need, the total 
costs of modifying the present GPS multiyear contract are 
greater than the short term saving to be derived from deferring 
the acquisition of one GPS satellite. The conferees direct the 
Department of the Air Force to submit an acquisition plan to 
the Appropriations Committees for the next multiyear 
procurement of GPS satellites which more closely aligns the 
acquisition of satellites with actual launch need dates. The 
Air Force is also directed to submit a report which compares 
the total costs of procuring the next block of GPS satellites 
under the terms of a multiyear contract with the alternative of 
procuring the satellites under a base year contract with 
variable quantity options. These reports shall be submitted no 
later than March 31, 1998.

                  Procurement of Ammunition, Air Force

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, AIR FORCE:                                                                           
    20MM PGU-28................................  ...........        3,500  ...........  ...........        1,750
    GBU-29 HARD TARGET PENETRATOR..............  ...........       16,800  ...........  ...........        8,400
    JOINT DIRECT ATTACK MUNITION...............       61,307       61,307       61,307        2,673       56,307
    WIND CORRECTED MUNITIONS DISPENSER.........       19,871       10,471       19,871          280       12,271
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........       -3,000  ...........       -3,000
----------------------------------------------------------------------------------------------------------------

                      Other Procurement, Air Force

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, AIR FORCE:                                                                                   
    ITEMS LESS THAN $2,000,000.................        5,025        3,625        5,025  ...........        3,625
    HMMWV, ARMORED.............................       24,181        7,781       24,181          125       24,181
    ITEMS LESS THAN $2,000,000.................        6,738        6,194        6,738  ...........        6,194
    60K A/C LOADER.............................       83,143       51,143       83,143           45       83,143
    INTELLIGENCE DATA HANDLING SYS.............       20,739       24,339       20,739  ...........       24,339
    WEATHER OBSERV/FORCAST.....................       18,013       22,013       18,013  ...........       22,013
    STRATEGIC COMMAND AND CONTROL..............       20,505       19,005       20,505  ...........       20,505
    TAC SIGINT SUPPORT.........................        4,114        9,114        4,114  ...........        6,114
    MINIMUM ESSENTIAL EMERGENCY COMM NET.......        3,488        3,488        3,488  ...........       11,988
    C3 COUNTERMEASURES.........................       14,904       13,004       14,904  ...........       13,004
    BASE LEVEL DATA AUTO PROGRAM...............       46,778       46,778       55,678  ...........       46,778
    BASE INFORMATION INFRASTRUCTURE............       88,945      136,945       88,945  ...........      112,945
    AF SATELLITE CONTROL NETWORK SPACE.........       32,197       23,097       32,197  ...........       23,097
    TACTICAL C-E EQUIPMENT.....................       16,968       16,968       54,968  ...........       34,968
    RADIO EQUIPMENT............................       12,844       19,344       12,844  ...........       19,344
    ITEMS LESS THAN $2,000,000.................        8,960        6,160        8,960  ...........        8,960
    NIGHT VISION GOGGLES.......................        2,371       13,271        2,371  ...........        2,371
    FLOODLIGHTS SET TYPE NF2D..................        7,696        4,696        7,696  ...........        6,196
    MEDICAL/DENTAL EQUIPMENT...................       13,295        8,095       13,295  ...........       10,695
    PRODUCTIVITY INVESTMENTS...................        5,980        5,980       10,980  ...........       10,980
    INTELLIGENCE PRODUCTION ACTIVITY...........       60,572       58,572       49,272  ...........       50,072
    DARP RC135.................................       12,778       47,778       12,778  ...........       12,778
    SELECTED ACTIVITIES........................    5,003,960    4,994,490    5,080,160  ...........    5,016,060
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........      -25,000  ...........      -25,000
    CIVIL AIR PATROL...........................  ...........  ...........  ...........  ...........          500
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
ITEMS LESS THAN $2,000,000..................................        5,025        3,625        5,025        3,625
    Minor replacement items.................................  ...........       -1,400  ...........       -1,400
HMMWV, Armored..............................................       24,181        7,781       24,181       24,181
    Duplicative force protection/anti-terrorist items.......  ...........      -16,400  ...........            0
Items less than $2,000,000..................................        6,738        6,194        6,738        6,194
    Contract savings and contingency funding................  ...........         -544  ...........         -544
60K A/C Loader..............................................       83,143       51,143       83,143       83,143
    Production ramp-up......................................  ...........      -32,000  ...........            0
Intelligence Data Handling Sys..............................       20,739       24,339       20,739       24,334
    JSAS....................................................  ...........        3,600  ...........        3,600
Weather Observ/Forcast......................................       18,013       22,013       18,013       22,013
    ASOS....................................................  ...........        4,000  ...........        4,000
Strategic Command and Control...............................       20,505       19,005       20,505       20,505
    Improved Technical Data System..........................  ...........      -10,000  ...........            0
    DIRECT (transfer to MEECN)..............................  ...........        8,500  ...........            0
Tac Sigint Support..........................................        4,114        9,114        4,114        6,114
    Integrated Broadcast Service............................  ...........        5,000  ...........        2,000
MEECN.......................................................        3,488        3,488        3,488       11,988
    DIRECT (transfer from Strategic Command and Control)....  ...........  ...........  ...........        8,500
C3 Countermeasures..........................................       14,904       13,004       14,904       13,004
    Excess prior year funds.................................  ...........       -1,900  ...........       -1,900
BASE LEVEL DATA AUTO PROGRAM................................       46,778       46,778       55,678       46,778
    REMIS...................................................  ...........  ...........        8,900  ...........
    [Conferees agree to provide $8,900,000 in O&M,AF for                                                        
     this purpose.]                                                                                             
Base Information Infrastructure.............................       88,945      136,945       88,945      112,945
    Security enhancements to base information systems.......  ...........       48,000  ...........       24,000
AF Satellite Control Network Space..........................       32,197       23,097       32,197       23,097
    Cancellation of Military Satellite Communications system  ...........       -9,100  ...........       -9,100
Tactical C-E Equipment......................................       16,968       16,968       54,968       34,968
    Theater deployable communications.......................  ...........  ...........       38,000       18,000
Radio Equipment.............................................       12,844       19,344       12,844       19,344
    Scope Command...........................................  ...........        6,500  ...........        6,500
ITEMS LESS THAN $2,000,000..................................        8,960        6,160        8,960        8,960
    Contract award delays...................................  ...........       -2,800  ...........            0
Night Vision Goggles........................................        2,371       13,271        2,371        2,371
    Accelerate procurement..................................  ...........       10,900  ...........            0
Floodlights Set Type NF2D...................................        7,696        4,696        7,696        6,196
    Contract award delays...................................  ...........       -3,000  ...........       -1,500
Medical/Dental Equipment....................................       13,295        8,095       13,295       10,695
    Prior year program savings..............................  ...........       -5,200  ...........       -2,600
Productivity Investments....................................        5,980        5,980       10,980       10,980
    Supply asset tracking systems...........................  ...........  ...........        5,000        5,000
Civil Air Patrol............................................  ...........  ...........  ...........          500
    [Transfer from Aircraft Procurement, Air Force]                                                             
----------------------------------------------------------------------------------------------------------------

                       Procurement, Defense-Wide

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
  PROCUREMENT, DEFENSE-WIDE:                                                                                    
    MAJOR EQUIPMENT, OSD.......................      104,601      114,601      104,601  ...........      114,601
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM....       14,380       44,955       14,380  ...........       14,380
    ITEMS LESS THAN $2.0 MILLION...............        7,461       14,661       14,461  ...........       14,661
    AUTOMATIC DOCUMENT CONVERSION SYSTEM.......  ...........       10,000       20,000  ...........       20,000
    MAJOR EQUIPMENT, DSPO......................       19,334       14,334       19,334  ...........       19,334
    MAJOR EQUIPMENT, TJS.......................       46,847       46,847       36,847  ...........       36,847
    PATRIOT PAC-3..............................  ...........      349,109  ...........           52      349,109
    NAVY AREA TBDM PROGRAM.....................  ...........       15,400  ...........  ...........       15,400
    BMC3.......................................  ...........       20,100  ...........  ...........       20,100
    SOF ROTARY WING UPGRADES...................       36,042       36,042       76,542  ...........       36,042
    PC, CYCLONE CLASS..........................  ...........       10,700  ...........  ...........       10,700
    ADVANCED SEAL DELIVERY SYSTEM (ASDS).......       38,800       38,800       38,800  ...........        4,500
    ADVANCED SEAL DELIVERY SYSTEM (ASDS) (AP-                                                                   
     CY).......................................        2,465        2,465        2,465  ...........          365
    REMOTE ACTIVATION MUNITION SYSTEMS.........  ...........  ...........        2,000  ...........        1,000
    SOF INTELLIGENCE SYSTEMS...................       21,175       25,475       23,175  ...........       24,175
    SOF SMALL ARMS & WEAPONS...................       10,269       10,269       12,669  ...........       11,269
    SOLDIER ENHANCEMENT PROGRAM................  ...........  ...........        2,300  ...........        2,300
    CLASSIFIED PROGRAMS........................      108,339      112,539      108,339  ...........      112,539
    INDIVIDUAL PROTECTION......................       64,855       74,855       64,855  ...........       79,855
    COLLECTIVE PROTECTION......................       17,316       37,316       17,316  ...........       27,316
    CLASSIFIED PROGRAM.........................      354,289      359,289      358,289  ...........      355,039
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........      -12,000  ...........      -12,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
  Special Operations Command                                                                                    
  Other Procurement:                                                                                            
    SOF Intelligence Systems....................          21,175          25,475          23,175          24,175
        ISP/MATTS...............................  ..............          +1,800  ..............          +1,500
        JTWS....................................  ..............          +2,000          +2,000          +1,500
    SOF Small Arms & Weapons....................          10,269          10,269          12,669          11,269
        Night Firing Scopes for M4A1 Carbines...  ..............  ..............          +2,400          +1,000
  Chemical/Biological Defense:                                                                                  
    Individual Protection.......................          64,855          74,855          64,855          79,855
        JSLIST suits............................  ..............         +10,000  ..............          +5,000
        JSLIST industrial production............  ..............  ..............  ..............         +10,000
    Collective Protection.......................          17,316          37,316          17,316          27,316
        Collective Protection Shortfalls in                                                                     
         Korea..................................  ..............         +20,000  ..............          +5,000
        M17-LDS water sprayers..................  ..............  ..............  ..............          +2,000
        7 HMVV medical shelters.................  ..............  ..............  ..............          +3,000
----------------------------------------------------------------------------------------------------------------

                       secure terminal equipment

      The conferees direct that $17,000,000 of the funds 
appropriated for Procurement, Defense-wide be made available 
only for the procurement of the tactical Secure Terminal 
Equipment program.

            socom procurement of naval special warfare boats

      The recent acquisition strategy initiated by the Special 
Operations Command (SOCOM) to procure new Naval Special Warfare 
33 foot rib boat systems resulted in an initial procurement of 
boat systems that cost about $1,000,000 each, while other 
competitive designs being procured by other federal agencies 
were reportedly available for less than one-third that amount. 
The high initial cost for this procurement prompts the 
conferees to encourage SOCOM to conduct a fresh review of the 
field of competition on the next round of procurement for large 
(30 foot and above) rib boats. The conferees request that SOCOM 
keep the Congressional defense committees informed of its plans 
for future procurement of this type.

                     advanced seal delivery system

      In response to a request from the Special Operations 
Command, the conferees have reduced the Advanced Seal Delivery 
System (ASDS) Procurement lines by $36,400,000 and added the 
same amount to the Special Operations Tactical Systems 
Development project in Title IV to complete the final stage of 
ASDS development.

                           jslist production

      The conferees recommend an increase of $10,000,000 to the 
Marine Corps, specifically to cover the nonrecurring 
facilitation and equipment costs incurred by the three National 
Industries for the Severely Handicapped (NISH) affiliated 
community rehabilitation centers currently under contract that 
form Department of Defense Joint Service Lightweight Integrated 
Suits (JSLIST) program industrial base. The Department may vest 
the title to the facilities and equipment with these three 
contractors.

                  National Guard and Reserve Equipment

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate       Qty.     Conference
----------------------------------------------------------------------------------------------------------------
NATIONAL GUARD & RESERVE EQUIPMENT                                                                              
RESERVE EQUIPMENT                                                                                               
ARMY RESERVE                                                                                                    
    MISCELLANEOUS EQUIPMENT.........................  ..........      20,000      65,000  ..........      75,000
    CH-47 D CARGO (CHINOOK).........................  ..........      65,000  ..........  ..........  ..........
NAVY RESERVE                                                                                                    
    MISCELLANEOUS EQUIPMENT.........................  ..........       5,000      40,000  ..........      80,000
    C-9 REPLACEMENT AIRCRAFT........................  ..........  ..........      40,000  ..........  ..........
    F-14A MODS......................................  ..........      34,000  ..........  ..........  ..........
    MAGIC LANTERN...................................  ..........       7,500  ..........  ..........  ..........
    F/A-18 MODS.....................................  ..........      58,000  ..........  ..........  ..........
MARINE CORPS RESERVE                                                                                            
    MISCELLANEOUS EQUIPMENT.........................  ..........      25,000      40,000  ..........      65,000
    CH-53 HELICOPTERS...............................  ..........      64,000  ..........  ..........  ..........
    T-39 REPLACEMENT AIRCRAFT.......................  ..........      10,000  ..........  ..........      10,000
AIR FORCE RESERVE                                                                                               
    MISCELLANEOUS EQUIPMENT.........................  ..........      45,000      40,000  ..........      50,000
    LOGISTIC SUPPORT FOR WC-130J....................  ..........  ..........      29,700  ..........  ..........
    C-5 SIMULATOR...................................  ..........      27,000  ..........  ..........  ..........
NATIONAL GUARD EQUIPMENT                                                                                        
ARMY NATIONAL GUARD                                                                                             
    MISCELLANEOUS EQUIPMENT.........................  ..........      43,000      140,00  ..........      70,000
    VIBRATION MANAGEMENT ENHANCEMENT PROGRAM........  ..........       3,000  ..........  ..........  ..........
    UH-60L..........................................  ..........       3,000  ..........  ..........  ..........
    LASER LEVELING..................................  ..........       1,000  ..........  ..........  ..........
    ENGAGEMENT SKILLS TRAINERS......................  ..........       3,000  ..........  ..........  ..........
    MELIOS, AN-PVS-6................................  ..........       5,000  ..........  ..........  ..........
AIR NATIONAL GUARD                                                                                              
    MISCELLANEOUS EQUIPMENT.........................  ..........       5,000      40,000  ..........      25,000
    C-130J..........................................  ..........     293,000      95,800           4     226,000
    EC-130J.........................................  ..........  ..........      70,500  ..........  ..........
    KC-135R ENGINE KITS.............................  ..........     100,000      52,000           2      52,000
    F-16 IMPROVED AVIONICS INTERMEDIATE SHOP........  ..........      32,000  ..........  ..........  ..........
    ULTIMATE BUILDING MACHINES......................  ..........       1,500  ..........  ..........  ..........
----------------------------------------------------------------------------------------------------------------

                        miscellaneous equipment

      The conferees agree that each of the Chiefs of the 
Reserve and National Guard components should exercise control 
of modernization funds provided in this account including 
aircraft and aircraft modernization. The conferees further 
agree that separate submissions of a detailed assessment of its 
modernization priorities by each of the Guard and Reserve 
component commanders is required to be submitted to the defense 
committees. The conferees expect the component commanders to 
give priority consideration to the following items: CH-47D 
helicopters, F-14A modifications, magic lantern, F/A-18 
modifications, C-9 replacement aircraft, CH-53 helicopters, C-5 
simulators, vibration management enhancement program, UH-60L, 
laser leveling equipment, engagement skills trainers, MELIOS 
night vision devices, F-16 improved avionics intermediate 
shops, ultimate building machines, air defense alerting devices 
(ADAD), A-2 bradley upgrades, ALR-56 radar warning receiver, 
AN/TQM-41 MMS, avengers, theater deployable communication 
packages, dragon missile upgrades, multiple launch rocket 
system (MLRS), magic lantern spares, small arms simulators, 
senior scout modifications, field artillery ammunition support 
vehicles (FAASVs), KC-135R reengining, night vision devices and 
driver's night viewers, heavy equipment transport system 
(HETS), paladin, M-1A2 tanks, CH-47 FADEC, medium truck 
extended service programs (ESP), F-16 C/D onboard oxygen 
generating system field installation and evaluation by the Air 
National Guard, M-270 launcher mechanical systems (ILMS), high 
mobility multipurpose wheeled vehicles, LITENING targeting and 
navigation pods, all-terrain cranes, modular airborne fire 
fighting system units, CH-47 internal crash worthy fuel cells, 
back scatter truck inspection systems, night vision equipment, 
CH-47 ICH aircraft, commercial industrial equipment, high speed 
dirt compactors, AH-64 combat mission simulators, high mobility 
trailers for HMMWVs, palletized loading systems, heavy expanded 
mobility tactical truck wreckers, M109A6, automatic building 
machines, air defense alerting device systems, interactive 
simulators, master cranes, deployable universal combat earth 
movers, HEMTT wreckers, and AN/VRC-102 Radios.

                  national guard and reserve aircraft

      The conferees agree to provide $288,000,000 specifically 
for the acquisition and modernization of the following aircraft 
to support Reserve and National Guard missions:

T-39 replacement aircraft for the Marine Corps Reserves.     $10,000,000
C-130J aircraft for the Air National Guard (4)..........     226,000,000
KC-135R engine kits for the Air National Guard..........      52,000,000

          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RDTE, ARMY......................................       4,510,843       4,686,427       4,984,083       5,156,507
RDTE, NAVY......................................       7,611,022       7,907,837       7,532,846       8,115,686
RDTE, AIR FORCE.................................      14,451,379      14,313,456      14,127,873      14,507,804
RDTE, DEFENSE-WIDE..............................       9,069,680       9,509,337       9,608,689       9,821,760
DEVELOPMENTAL TEST AND EVALUATION...............         268,183         268,183         251,183         258,183
OPERATIONAL TEST AND EVALUATION.................          23,384          32,684          31,384          31,384
                                                 ---------------------------------------------------------------
      GRAND TOTAL, RDTE.........................      35,934,491      36,717,924      36,536,058      37,891,324
----------------------------------------------------------------------------------------------------------------

            Research, Development, Test and Evaluation, Army

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL ARMY:                                                                          
    IN-HOUSE LABORATORY INDEPENDENT RESEARCH....          15,113          14,113          15,113          14,113
    DEFENSE RESEARCH SCIENCES...................         138,165         120,165         136,798         125,798
    UNIVERSITY AND INDUSTRY RESEARCH CENTERS....          45,576          45,576          52,876          46,576
    MATERIALS TECHNOLOGY........................           9,811           9,811          13,811          12,811
    SENSORS AND ELECTRONIC SURVIVABILITY........          19,294          24,294          21,794          26,794
    AVIATION TECHNOLOGY.........................          27,282          22,282          25,982          22,982
    EW TECHNOLOGY...............................          16,528          16,528          19,528          19,528
    MISSILE TECHNOLOGY..........................          22,335          22,335          26,335          25,335
    COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY....          33,112          40,112          58,112          62,112
    BALLISTICS TECHNOLOGY.......................          33,317          38,317          33,317          41,317
    CHEMICAL, SMOKE AND EQUIPMENT DEFEATING                                                                     
     TECHNOLOGY.................................           4,739           2,739           4,739           3,739
    JOINT SERVICE SMALL ARMS PROGRAM............           4,786           9,286           7,786           9,286
    WEAPONS AND MUNITIONS TECHNOLOGY............          26,980          26,980          30,876          30,876
    ELECTRONICS AND ELECTRONIC DEVICES..........          20,192          22,692          26,042          26,792
    HUMAN FACTORS ENGINEERING TECHNOLOGY........          14,256          18,256          19,356          17,256
    ENVIRONMENTAL QUALITY TECHNOLOGY............          17,519          42,219          58,419          61,919
    MILITARY ENGINEERING TECHNOLOGY.............          36,422          43,922          47,422          58,422
    LOGISTICS TECHNOLOGY........................          17,689          19,689          17,689          18,689
    MEDICAL TECHNOLOGY..........................          74,684         142,484          74,684         165,484
    MEDICAL ADVANCED TECHNOLOGY.................          10,677         142,177         196,277         190,177
    AVIATION ADVANCED TECHNOLOGY................          31,330          53,830          34,330          92,330
    WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY...          18,255          25,255          30,255          26,255
    COMBAT VEHICLE AND AUTOMOTIVE ADVANCED                                                                      
     TECHNOLOGY.................................          32,685          35,685          35,285          42,242
    COMMAND, CONTROL, COMMUNICATIONS ADVANCED                                                                   
     TECHNOLOGY.................................          19,688          19,688          28,688          26,688
    TRACTOR HIKE................................          14,350  ..............          14,350          14,350
    TRACTOR ROSE................................           9,204           9,204          11,204          11,204
    MISSILE AND ROCKET ADVANCED TECHNOLOGY......         117,139          59,439         120,139          93,839
    LANDMINE WARFARE AND BARRIER ADVANCED                                                                       
     TECHNOLOGY.................................          19,332          25,932          32,932          32,932
    JOINT SERVICE SMALL ARMS PROGRAM............           4,754          11,754           7,754           9,254
    LINE-OF-SIGHT TECHNOLOGY DEMONSTRATION......          13,000  ..............          13,000           5,000
    MILITARY ENGINEERING ADVANCED TECHNOLOGY....          12,231          12,231          24,331          20,331
    ARMY MISSILE DEFENSE SYSTEMS INTEGRATION                                                                    
     (DEM/VAL)..................................          24,138          55,638          87,638          75,638
    ARMAMENT ENHANCEMENT INITIATIVE.............          40,313          60,313          33,313          38,313
    NATO RESEARCH AND DEVELOPMENT...............          13,168  ..............          13,168           9,168
    AVIATION--ADV DEV...........................           7,132          15,132          12,132          14,132
    ARTILLERY SYSTEMS--DEM/VAL..................         324,380         324,380         301,321         324,380
    EW DEVELOPMENT..............................          66,212          86,524          67,712          87,024
    ALL SOURCE ANALYSIS SYSTEM..................          24,045          27,545          27,245          27,245
    FAMILY OF HEAVY TACTICAL VEHICLES...........  ..............           5,000  ..............           5,000
    ADVANCED COMMAND AND CONTROL VEHICLE (AC2V).           8,867           8,867          11,867          10,867
    ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....          56,196          56,196          50,196          52,196
    COMBAT FEEDING, CLOTHING, AND EQUIPMENT.....          55,964          65,264          55,964          61,964
    NON-SYSTEM TRAINING DEVICES--ENG DEV........          76,749          76,749          81,749          80,249
    AIR DEFENSE COMMAND, CONTROL AND                                                                            
     INTELLIGENCE--ENG DE.......................          18,350          18,350          22,350          22,350
    AUTOMATIC TEST EQUIPMENT DEVELOPMENT........           2,582          11,582           2,582           8,582
    BRILLIANT ANTI-ARMOR SUBMUNITION (BAT)......         202,302         202,302         187,302         237,302
    COMBINED ARMS TACTICAL TRAINER (CATT).......           2,823          13,323           2,823          13,323
    WEAPONS AND MUNITIONS--ENG DEV..............           3,577           3,577           5,077           5,077
    LANDMINE WARFARE/BARRIER--ENG DEV...........          22,605           8,905           8,732           8,732
    SENSE AND DESTROY ARMAMENT MISSILE--ENG DEV.          22,372           5,494          22,372          11,494
    THREAT SIMULATOR DEVELOPMENT................          14,004          14,004          18,004          17,004
    ARMY KWAJALEIN ATOLL........................         138,769         138,769         124,769         124,769
    DOD HIGH ENERGY LASER TEST FACILITY.........          14,952          30,952          29,952          29,952
    MATERIAL SYSTEMS ANALYSIS...................          29,707          14,707          29,707          29,707
    SUPPORT OF OPERATIONAL TESTING..............          81,672          51,672          81,672          81,672
    PROGRAMWIDE ACTIVITIES......................          86,208          66,208          82,208          82,208
    INTERNATIONAL COOPERATIVE RESEARCH AND                                                                      
     DEVELOPMENT................................           1,581           1,581  ..............  ..............
    MUNITIONS STANDARDIZATION, EFFECTIVENESS AND                                                                
     SAFETY.....................................           6,317           9,317           6,317          11,417
    ENVIRONMENTAL COMPLIANCE....................          51,378          56,378          58,378          58,378
    MAINTENANCE AND REPAIR (RPM)--RDT&E.........          85,119          85,119          86,419          86,419
    MANAGEMENT HEADQUARTERS (RESEARCH AND                                                                       
     DEVELOPMENT)...............................           4,837           4,837          31,337          25,837
    MLRS PRODUCT IMPROVEMENT PROGRAM............          26,678          26,678          40,378          37,678
    AEROSTAT JOINT PROJECT OFFICE...............          86,193  ..............          96,193          35,000
    COMBAT VEHICLE IMPROVEMENT PROGRAMS.........         136,520         152,520         176,720         167,020
    AIRCRAFT MODIFICATIONS/PRODUCT IMPROVEMENT                                                                  
     PROGRAMS...................................           2,609          22,609          32,609          22,609
    DIGITIZATION................................         156,960          75,560         120,043          71,560
    MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT                                                                     
     PROGRAM....................................          17,412          27,412          31,412          31,412
    JOINT TACTICAL GROUND SYSTEM................           3,195           6,195           3,195           5,195
    SPECIAL ARMY PROGRAM........................           5,547           7,417           5,547           7,547
    INFORMATION SYSTEMS SECURITY PROGRAM........           9,647          12,147           9,647          12,147
    SATCOM GROUND ENVIRONMENT (SPACE)...........          57,827          57,827          56,227          56,227
    END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.          44,326          54,326          57,326          66,326
    FORCE XXI INITIATIVE........................  ..............          38,900  ..............          38,900
    STRIKER.....................................  ..............           3,900  ..............           3,900
    MORTAR FIRE CONTROL.........................  ..............          10,000  ..............          10,000
    ECONOMIC ASSUMPTIONS........................  ..............  ..............         -17,000         -17,000
    COUNTER MRL--TSPO...........................  ..............           5,000  ..............           2,000
    RADIO FREQUENCY.............................  ..............  ..............  ..............           1,700
    LIGHTWEIGHT LASER DESIGNATOR/RANGE FINDER...  ..............  ..............  ..............           2,800
    COMBAT SYNTHETIC TRAINING ASSESSMENT RANGE..  ..............  ..............  ..............           5,400
    ARMY AIRBORNE COMMAND & CONTROL SYSTEM......  ..............  ..............  ..............          11,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences.......................         138,165         120,165         136,798         125,798
    Program growth..............................  ..............         -18,000  ..............         -10,000
    Defense Information Warfare Initiative......  ..............         (1,000)          +3,500          +2,500
    Scientific problems with military                                                                           
     applications...............................  ..............  ..............          -4,867          -4,867
University and Industry Research Centers........          45,576          45,576          52,876          46,576
    Federated Labs..............................  ..............  ..............          +2,300         (2,300)
    (Note: The conferees direct that within                                                                     
     funds available, an additional $2,300,000                                                                  
     is to be used for the federated labs.)                                                                     
    Hypervelocity physics project...............  ..............  ..............          +1,000          +1,000
    Electric Rail Gun...........................  ..............  ..............          +4,000               0
    (Note: Transferred to Ballistics                                                                            
     Technology.)                                                                                               
Sensors and Electronic Survivability............          19,294          24,294          21,794          26,794
    PDCUE.......................................  ..............  ..............          +2,500          +2,500
    Passive millimeter wave camera..............  ..............          +5,000  ..............          +5,000
Aviation Technology.............................          27,282          22,282          25,982          22,982
    FY 1997 Freeze..............................  ..............          -5,000  ..............          -3,000
    Budget correction...........................  ..............  ..............          -1,300          -1,300
Combat vehicle and automotive technology........          33,112          40,112          58,112          62,112
    Voice Instructional Device..................  ..............          +3,000  ..............          +3,000
    Tank and Vehicle Simulation Laboratory......  ..............          +6,000  ..............          +6,000
    National Automotive Center..................  ..............  ..............          +4,000          +4,000
    Joint Robotics Development Program on Ground                                                                
     vehicle survivability......................  ..............  ..............          +6,000          +4,500
    Air Defense Alerting Device integration--                                                                   
     Bradley Stinger Vehicle....................  ..............  ..............          +5,000          +4,000
    High-output diesel engine testing...........  ..............         (1,000)          +1,000          +1,000
    HMMWV 6.2L engine rebuild program...........  ..............  ..............          +4,000          +4,000
    Alternative vehicle propulsion systems......  ..............  ..............          +5,000          +2,500
    Program termination.........................  ..............          -2,000  ..............               0
Ballistics technology...........................          33,317          38,317          33,317          41,317
    Liquid propellant...........................  ..............          +5,000  ..............          +4,000
    Electric Rail Gun...........................               0               0               0          +4,000
    (Note: Transferred from University &                                                                        
     Research Centers.)                                                                                         
Weapons and Munitions Technology................          26,980          26,980          30,876          30,876
    Budget correction...........................  ..............  ..............          -1,104          -1,104
    Plastic-cased ammunition....................  ..............  ..............          +5,000          +5,000
Electronics and electronic Devices..............          20,192          22,692          26,042         +26,792
    Thermophotovoltaic generators...............  ..............          +2,500  ..............          +1,500
    ``AA'' zinc battery.........................  ..............  ..............          +1,500          +1,500
    Low-cost reusable alkaline manganese zinc...  ..............  ..............          +1,000          +1,000
    Enzyme-based chemical & biological detection                                                                
     technology.................................  ..............  ..............          +2,250          +1,500
    Advanced nonmetallic rechargeable battery                                                                   
     system.....................................  ..............  ..............            +600            +600
    Rechargeable coin cells.....................  ..............  ..............            +500            +500
Environmental Quality Technology................          17,519          42,219          58,419          61,919
    Gallo Center................................  ..............          +5,000  ..............          +4,000
    Natural Gas boiler demonstration--CERL......  ..............          +2,000  ..............               0
    Commercialization of Technologies to Lower                                                                  
     Defense Cost Init..........................  ..............          +5,000  ..............          +5,000
    Bioremediation Education, Science, &                                                                        
     Technology Center..........................  ..............          +4,000          +4,000          +4,000
    Plasma Energy Pyrolysis System..............  ..............          +8,700          +8,700          +6,000
    Radford Environmental Development &                                                                         
     Management Program.........................  ..............  ..............          +6,000          +5,000
    Environmental projects at the WETO facility.  ..............  ..............          +8,800          +7,000
    Small Business development program..........  ..............  ..............          +5,400          +5,400
    Agriculturally based remediation in Pacific                                                                 
     Island ecosystems..........................  ..............  ..............          +4,000          +4,000
    Resource Recovery Technology Center.........  ..............  ..............          +4,000               0
    Computer based land management..............  ..............  ..............  ..............          +4,000
Military Engineering Technology.................          36,422          43,922          47,422          58,422
    Cold Regions Research and Engineering Lab...  ..............  ..............          +1,000          +1,000
    Climate change fuel cells--U.S. Army........  ..............          +7,500  ..............          +7,500
    Center for Geosciences Atmospheric Research.  ..............  ..............         +10,000          +7,500
    Molten carbonate fuel cells technology......  ..............  ..............  ..............          +6,000
Medical Technology..............................          74,684         142,484          74,684         165,484
    Neurotoxin Exposure Treatment research......  ..............         +25,000  ..............         +25,000
    Neurofibromatosis...........................  ..............          +9,800  ..............          +9,800
    Army nutrition research.....................  ..............          +3,500  ..............          +3,500
    Orthopedic implant research (Volumetrically                                                                 
     controlled manufacturing)..................  ..............          +3,500  ..............          +2,500
    LSTAT.......................................  ..............          +6,000  ..............               0
    Ovarian cancer..............................  ..............         +10,000  ..............         +10,000
    Prostate cancer research....................  ..............         +10,000  ..............         +40,000
Medical Advanced Technology.....................          10,677         142,177         196,277         190,177
    Army-managed peer-reviewed breast cancer                                                                    
     research...................................  ..............        +100,000        +175,000        +135,000
    MRE nutrition research......................  ..............  ..............          +3,600               0
    Prostate cancer diagnostic imaging..........  ..............  ..............          +5,000          +5,000
    National Medical Testbed....................  ..............          +8,000  ..............          +8,000
    Intravenous membrane oxygenator tech........  ..............  ..............          +1,000               0
    Mustard gas research........................  ..............  ..............          +1,000          +1,000
    Walter Reed Lab upgrades....................  ..............          +6,000  ..............          +6,000
    Advanced cancer detection...................  ..............          +3,500  ..............          +3,500
    Cooperative teleradiology...................  ..............          +3,000  ..............          +3,000
    Advanced trauma care........................  ..............          +6,000  ..............          +3,000
    Artificial lung research....................  ..............          +1,500  ..............          +1,500
    Emergency telemedicine......................  ..............          +3,500  ..............          +2,500
    Volume Angiocat (VAC).......................  ..............  ..............  ..............          +4,000
    Periscopic minimally-invasive surgery.......  ..............  ..............  ..............          +3,000
    Proton beam.................................  ..............  ..............  ..............          +4,000
Aviation Advanced Technology....................          31,330          53,830          34,330          92,330
    Short range UAV.............................  ..............          +5,000  ..............               0
    Integrated manned and unmanned aerial                                                                       
     vehicle study..............................  ..............          +2,500  ..............          +1,000
    Stinger Universal launcher..................  ..............         +11,600  ..............         +11,600
    Starstreak..................................  ..............          +3,400          +3,000          +3,400
    Outrider UAV................................  ..............  ..............  ..............         +45,000
Weapons and Munitions Advanced Tech.............          18,255          25,255          30,255          26,255
    Trajectory correctable munition.............  ..............          +5,000          +8,000          +6,000
    Precision guided mortar munition............  ..............          +2,000          +4,000          +2,000
Combat Vehicle and Automotive Adv Tech..........          32,685          35,685          35,285          42,242
    Composite armored vehicle technology                                                                        
     transfer...................................  ..............          +3,000  ..............          +2,000
    Aluminum metal matrix composites............  ..............  ..............          +9,000          +6,500
    Commercial derivative engine for the                                                                        
     palletized load system.....................  ..............  ..............          +3,600          +3,600
    Program adjustment..........................  ..............  ..............         -10,000          -2,543
Command, Control, Communications--Adv Tech......          19,688          19,688          28,688          26,688
    Wavenet technology..........................  ..............  ..............          +4,000          +2,000
    Field Laser Radar Demo (FLD) Data Analysis                                                                  
     Center.....................................  ..............  ..............          +5,000          +5,000
Missile and Rocket Advanced Technology..........         117,139          59,439         120,139          93,839
    EFOG-M......................................  ..............         -57,700  ..............         -26,300
    Future missile technology integration.......  ..............  ..............          +3,000          +3,000
Landmine Warfare and Barrier Adv. Tech..........          19,332          25,932          32,932          32,932
    Vehicular Mounted Mine Detection............  ..............          +2,700          +2,700          +2,700
    Stand off ground penetrating radar..........  ..............          +3,900          +3,900          +3,900
    Airborne standoff minefield detection system  ..............  ..............          +7,000          +7,000
Joint Service Small Arms Program................           4,754          11,754           7,754           9,254
    OICW........................................  ..............          +5,500          +3,000          +3,000
    Adv. light antiarmor weapons system.........  ..............          +1,500  ..............          +1,500
Military Engineering Advanced Technology........          12,231          12,231          24,331          20,331
    Rapidly installed breakwater technology.....  ..............  ..............          +2,000          +2,000
    Civil engineer assistance to forward                                                                        
     deployed engineer forces...................  ..............  ..............          +2,000          +2,000
    Combat engineering systems logistics over                                                                   
     shore......................................  ..............  ..............          +8,100          +4,100
    Advanced light anti-armor weapons system....  ..............  ..............         (4,500)               0
Army Missile Defense Systems Integration........          24,138          55,638          87,638          75,638
    Battlefield Integration Center..............  ..............  ..............         +22,000         +17,000
    THEL........................................  ..............         +31,500         +41,500         +34,500
Armament Enhancement Initiative.................          40,313          60,313          33,313          38,313
    TERM-KE-seeker development, lethality                                                                       
     testing, & associated-hardware.............  ..............         +20,000         +10,000         +15,000
    Smart-top attack............................  ..............  ..............         -17,000         -17,000
    (Note: The conferees expect the Army to                                                                     
     submit a reprogramming for appropriate                                                                     
     close out and termination costs.)                                                                          
Aviation Adv Dev................................           7,132          15,132          12,132          14,132
    Integrated aircrew common helmet............  ..............          +3,000  ..............          +2,000
    Retinal display technologies-integrated crew                                                                
     helmet.....................................  ..............          +5,000          +5,000          +5,000
EW Development..................................          66,212          86,524          67,712          87,024
    Force XXI lessons learned (GBCS)............  ..............         +20,312  ..............         +15,312
    Suite of integrated countermeasures.........  ..............  ..............          -6,000               0
    ATIRCM......................................  ..............  ..............          +7,500          +5,500
Brilliant Anti-armor submunition................         202,302         202,302         187,302         237,302
    BAT P31.....................................  ..............  ..............         -15,000               0
    Transfer from procurement...................  ..............  ..............  ..............         +35,000
DoD High Energy Laser Test Facility.............          14,952          30,952          29,952          29,952
    THEL testing at HELSTF......................  ..............         +10,000         +10,000         +10,000
    High energy solid state laser development...  ..............          +6,000          +5,000          +5,000
Munitions Standardization, Effectiveness &                                                                      
 Safety.........................................           6,317           9,317           6,317          11,417
    Blast chamber--Blue Grass Army Depot........  ..............          +3,000  ..............          +2,000
    Blast chamber--Anniston Army Depot..........  ..............  ..............  ..............          +2,000
    (Note: Added by Senate in RDT&E, Defense-                                                                   
     wide).                                                                                                     
    Explosive waste incinerator.................  ..............  ..............  ..............          +1,100
Environmental compliance........................          51,378          56,378          58,378          58,378
    Climate Change Fuel Cell-CERL...............  ..............          +5,000          +5,000          +5,000
    Natural gas boiler demonstration-CERL.......  ..............  ..............          +2,000          +2,000
MLRS Product Improvement Program................          26,678          26,678          40,378          37,678
    Guided MLRS.................................  ..............  ..............          +8,100          +7,000
    MLRS improved launcher mechanical system                                                                    
     (ILMS).....................................  ..............  ..............          +5,600          +4,000
Aerostate Joint Project Office..................          86,193               0          96,193          35,000
    Program reduction...........................  ..............         -86,193  ..............         -51,193
    Aerostat development........................  ..............  ..............         +10,000               0
Combat Vehicle Improvement Programs.............         136,520         152,520         176,720         167,020
    M1 flat panel displays......................  ..............         +12,000         +12,000         +12,000
    AN/VVR-1 laser warming receiver.............  ..............          +4,000          +4,000          +4,000
    Abrams SEP..................................  ..............  ..............          +8,000          +6,500
    ADAD for Bradley Stinger fighting vehicle...  ..............  ..............          +4,000          +4,000
    M-7 Bradley fire support team (BFIST)                                                                       
     vehicle test program sets..................  ..............  ..............          +3,000          +2,000
    Bradley A3 Test Program sets................  ..............  ..............          +3,500          +2,000
    Heavy recovery vehicle traction control                                                                     
     system.....................................  ..............  ..............          +5,700               0
Digitization....................................         156,960          75,560         120,043          71,560
    Force XXI...................................  ..............        -100,000         -36,917        -100,000
    Tactical Personal Communications............  ..............         +10,000  ..............          +6,000
    Applique....................................  ..............          +2,600  ..............          +2,600
    Tactical Internet...........................  ..............          +6,000  ..............          +6,000
    (Note: The conferees do not agree with the                                                                  
     House direction requiring the Army to                                                                      
     establish a Battlefield Acquisition Program                                                                
     Office.)                                                                                                   
Missile/Air Defense Product Improvement.........          17,412          27,412          31,412          31,412
    Patriot upgrade.............................  ..............         +10,000         +10,000         +10,000
    Stinger target acquisition sensor study and                                                                 
     Stinger Blk II pre-EMD efforts.............  ..............  ..............          +4,000          +4,000
Joint Tactical Ground System....................           3,195           6,195           3,195           5,195
    Phase II P31................................  ..............  ..............  ..............  ..............
End Item Industrial Preparedness................          44,326          54,326          57,326          66,326
    M829E3 munitions development................  ..............          +5,000  ..............          +5,000
    Munitions manufacturing technology..........  ..............          +5,000  ..............          +3,000
    Instrumented Factory for Gears (INFAC)......  ..............  ..............          +4,000          +3,000
    Total integration munitions engineering.....  ..............  ..............          +5,000          +8,000
    Electronic Circuit Board Manufacturing                                                                      
     Development Center.........................  ..............  ..............          +4,000          +3,000
Radio Frequency.................................               0               0               0           1,700
    (Note: Funds have been transferred from                                                                     
     Other Procurement, Army.)                                                                                  
Lightweight laser designator range finder.......               0               0               0           2,800
    (Note: Funds have been transferred from                                                                     
     Other Procurement, Army.)                                                                                  
Combat synthetic training assessment range......               0               0               0           5,400
    (Note: Funds have been transferred from                                                                     
     Other Procurement, Army.)                                                                                  
Army Airborne Command & Control.................               0               0               0          11,000
    (Note: Funds have been transferred from                                                                     
     Other Procurement, Army.)                                                                                  
----------------------------------------------------------------------------------------------------------------

                army high performance computing research

      The conferees urge the Army to provide within the defense 
research sciences program element, $750,000 to hook up four 
historically-black colleges with the Army High Performance 
Computing Center in Minneapolis and $500,000 for work stations 
at these colleges to optimize the use of the new computing 
facilities which were made available through the fiscal year 
1997 defense appropriations act.

                    environmental quality technology

      The conferees agree to provide $4,000,000 in the Army 
Environmental Quality Technology line only to develop computer-
based land management modeling projects designed to help reduce 
time and costs associated with recovery of military training 
areas. The conferees expect the U.S. Army Construction 
Engineering Research Laboratory to prudently manage this 
additional funding to achieve maximum results.

                           medical technology

                volumetrically controlled manufacturing

      The conferees have provided $2,500,000 only for the 
development of a prototype artificial hip using 
multidimensional volumetrically controlled manufacturing of 
synthetic materials.

                      medical advanced technology

                 collaborative efforts in telemedicine

      The conferees recognize the need to continue 
establishment of collaborative efforts for design of a 
telemedicine trauma/emergency medical services system to 
provide necessary diagnostic and treatment interventions and 
improve medical outcomes. This effort should include 
participation by appropriate DoD agencies and public/
institutions.

                      prostate diagnostic imaging

      The conferees are concerned about the quality and 
efficacy of prostate diagnostic imaging, and believe that 
prostate cancer detection and treatment would greatly benefit 
from more accurate and refined equipment and procedures. The 
conferees direct the Army to establish a public/private 
research project in coordination with appropriate Government 
agencies and private institutions to explore promising 
technologies for improvement of prostate diagnostic imaging. 
The conferees provide $5,000,000 only for this purpose in the 
Medical Advanced Technology line. The conferees expect funding 
management to be accomplished by Walter Reed Army Medical 
Center.

                     diagnostic imaging technology

      The conferees recognize the excellent work being 
conducted at Walter Reed in diagnostic imaging technology and 
direct that a Diagnostic Imaging Technology Center of 
Excellence be established at Walter Reed Army Hospital and that 
the Army be the lead agent in this endeavor. All DoD efforts in 
this area should be coordinated with the center. In this vein, 
the conferees are extremely encouraged with the potential 
benefits of the Volume Angio CAT (VAC) and have provided an 
additional $4,000,000 to continue efforts on this promising 
imaging technology.

                 periscopic minimally-invasive surgery

      The conferees agree to provide $3,000,000 in the Army 
Medical Technology line only to pursue further development of 
minimally-invasive surgery techniques. The conferees believe 
greater understanding of this cutting-edge technology could 
result in significant benefits for US armed forces.

                      aviation advanced technology

                             outrider tuav

      The conferees agree to provide $45,000,000 to continue 
the development, testing and evaluation of the Outrider 
tactical unmanned aerial vehicle (TUAV). The conferees direct 
the Secretary of the Army submit an acquisition strategy to the 
Committees on Appropriations of the House and Senate after the 
user-testing and evaluation are completed.

          munitions standardization, effectiveness and safety

      The conferees are aware of the need to close and clean up 
the open pit burning ground currently being used to dispose of 
explosive waste at Picatinny Arsenal. The Army has concluded 
that additional funds are needed to complete the construction 
of the Explosive Waste Incinerator and the conferees agree to 
provide $1,100,000 only to finish this project.

                               mattracks

      The conferees urge the Army to begin development testing 
of the MATTRACKS track system within available research, 
development, test and evaluation funding. The MATTRACKS track 
system, which has been control tested by the Army and Marine 
Corps with excellent results, appears to have great value for 
military uses particularly mine clearing efforts.

            Research, Development, Test and Evaluation, Navy

    The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                       Budget     House      Senate   Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL NAVY:                                                                          
IN-HOUSE INDEPENDENT LABORATORY RESEARCH...........................     15,834     14,683     15,834      14,683
DEFENSE RESEARCH SCIENCES..........................................    366,283    336,463    366,283     334,463
SURFACE/AEROSPACE SURVEILLANCE AND WEAPONS TECHNOLOGY..............     32,273     29,273     32,273      29,273
SURFACE SHIP TECHNOLOGY............................................     46,859     53,859     52,859      50,359
AIRCRAFT TECHNOLOGY................................................     23,590     25,390     23,590      25,390
COMMAND, CONTROL, AND COMMUNICATIONS TECHNOLOGY....................     65,566     59,566     56,566      56,566
READINESS, TRAINING, AND ENVIRONMENTAL QUALITY TECHNOLOGY..........     31,762     47,362     31,762      39,362
MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY.....................     76,653     73,653     80,153      75,503
ELECTRONIC WARFARE TECHNOLOGY......................................     22,810     21,810     22,810      21,810
UNDERSEA SURVEILLANCE WEAPON TECHNOLOGY............................     51,033     46,033     51,033      46,033
MINE COUNTERMEASURES, MINING AND SPECIAL WARFARE...................     42,737     42,737     21,600      42,737
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY...........................     48,211     77,711     66,961      73,711
UNDERSEA WARFARE WEAPONRY TECHNOLOGY...............................     35,736     31,736     43,736      37,736
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY........................     35,093     41,193     27,693      35,693
PRECISION STRIKE AND AIR DEFENSE...................................     43,320     44,320     43,320      44,320
ADVANCED ELECTRONIC WARFARE TECHNOLOGY.............................     18,144     17,144     18,144      17,144
SHIP PROPULSION SYSTEM.............................................     39,737     34,737     49,737      49,737
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD)...............     34,178     63,478     51,178      61,678
MEDICAL DEVELOPMENT................................................     18,332     72,732     19,632      70,232
MANPOWER, PERSONNEL AND TRAINING ADV TECH DEV......................     18,812     20,502     20,042      22,502
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECHNOLOGY............     18,249     18,999     28,249      26,249
UNDERSEA WARFARE ADVANCED TECHNOLOGY...............................     54,785     46,385     46,385      49,385
SHALLOW WATER MCM DEMOS............................................     41,602     38,352     41,602      38,352
ADVANCED TECHNOLOGY TRANSITION.....................................     87,285     73,052     72,285      76,285
C3 ADVANCED TECHNOLOGY.............................................     23,768     22,368     23,768      22,368
AVIATION SURVIVABILITY.............................................      7,859     16,959      7,859      16,959
ASW SYSTEMS DEVELOPMENT............................................     22,869     26,669     22,869      24,869
SURFACE AND SHALLOW WATER MINE COUNTERMEASURES.....................     58,231     71,131     76,431      73,631
ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT......................     61,122     62,422     61,122      62,422
CARRIER SYSTEMS DEVELOPMENT........................................     98,587     10,187    115,587      20,587
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT.............................     19,194     22,694     19,194      22,694
ADVANCED SUBMARINE SYSTEM DEVELOPMENT..............................     59,067    162,067     59,067     114,000
SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES......................     38,682     38,682     63,682      53,682
ADVANCED SURFACE MACHINERY SYSTEMS.................................     49,741     44,741     49,741      47,741
CONVENTIONAL MUNITIONS.............................................     34,190     38,190     34,190      38,390
ADVANCED WARHEAD DEVELOPMENT (MK-50)...............................      2,012  .........      2,012  ..........
MARINE CORPS ASSAULT VEHICLES......................................     60,134     70,134     60,134      68,134
MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM..........................     36,464     40,064     36,464      40,064
COOPERATIVE ENGAGEMENT.............................................    139,229    223,229    149,229     213,229
ENVIRONMENTAL PROTECTION...........................................     52,401     56,401     54,401      58,401
FACILITIES IMPROVEMENT.............................................      1,720      6,720      1,720       6,720
RETRACT ELM........................................................     21,822     24,522     21,822      24,522
NATO RESEARCH AND DEVELOPMENT......................................     13,330  .........     13,330      10,000
LAND ATTACK TECHNOLOGY.............................................     37,809     81,909     37,809      60,809
JOINT STRIKE FIGHTER (JSF)--DEM/VAL................................    448,855    448,855    476,855     463,855
SPACE AND ELECTRONIC WARFARE (SEW) ARCHITECTURE/ENGINE.............      4,705      4,705      9,705       7,705
OTHER HELO DEVELOPMENT.............................................     73,354     85,354    113,304     130,191
STANDARDS DEVELOPMENT..............................................     36,297     40,297     38,297      38,297
S-3 WEAPON SYSTEM IMPROVEMENT......................................      4,735      4,735        930         930
P-3 MODERNIZATION PROGRAM..........................................      3,191      3,191     15,191      13,191
TACTICAL COMMAND SYSTEM............................................     31,518     41,518     31,518      36,518
H-1 UPGRADES.......................................................     80,735     86,335     80,735      86,335
ACOUSTIC SEARCH SENSORS............................................     16,947     20,947     16,947      18,947
AIR CREW SYSTEMS DEVELOPMENT.......................................     12,111     18,111     12,111      18,111
EW DEVELOPMENT.....................................................    101,803    104,603     91,127      99,127
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING........................     87,934    142,134    122,934     148,134
ARSENAL SHIP.......................................................    102,994  .........     75,994      35,000
LPD-17 CLASS SYSTEMS INTEGRATION...................................        471     13,471        471      13,471
TRI-SERVICE STANDOFF ATTACK MISSILE................................      9,644  .........      5,456       5,456
VLA UPGRADE........................................................  .........     12,000  .........       9,000
AIRBORNE MCM.......................................................     16,503     19,503     16,503      18,503
SSN-688 AND TRIDENT MODERNIZATION..................................     42,294     52,294     67,294      57,294
SUBMARINE COMBAT SYSTEM............................................     23,701      2,366     23,701      18,701
NEW DESIGN SSN.....................................................    311,076    331,076    316,076     323,076
SSN-21 DEVELOPMENTS................................................     49,542     12,332     49,542      49,542
SHIP CONTRACT DESIGN/LIVE FIRE T&E.................................     75,713     64,713    100,713      92,713
NAVY TACTICAL COMPUTER RESOURCES...................................      4,794     39,294      4,794      35,294
LIGHTWEIGHT TORPEDO DEVELOPMENT....................................     17,290     19,302     17,290      19,302
NAVY ENERGY PROGRAM................................................      2,088      2,088      4,588       2,088
JOINT STANDOFF WEAPON SYSTEMS......................................     71,526     71,526     71,526      80,526
SHIP SELF DEFENSE--EMD.............................................    132,270    190,870    134,270     163,270
MEDICAL DEVELOPMENT................................................      3,620     16,920      3,620      16,920
DISTRIBUTED SURVEILLANCE SYSTEM....................................     33,048     43,448     23,048      43,448
TARGET SYSTEMS DEVELOPMENT.........................................     48,308     45,408     45,308      45,408
MAJOR T&E INVESTMENT...............................................     33,236     39,236     33,236      36,236
STUDIES AND ANALYSIS SUPPORT--NAVY.................................      8,755      6,679      8,755       6,679
TECHNICAL INFORMATION SERVICES.....................................      8,763        763      8,763       3,263
RDT&E SCIENCE AND TECHNOLOGY MANAGEMENT............................     57,591     55,961     57,591      55,961
TEST AND EVALUATION SUPPORT........................................    263,934    235,908    251,934     246,934
MARINE CORPS PROGRAM WIDE SUPPORT..................................      8,207     12,707      8,207      12,707
F/A-18 SQUADRONS...................................................    316,976    207,776    290,976     293,976
TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER (TMPC)...............     93,359     91,500     93,359      91,500
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT..........................     58,956     36,456     63,956      68,956
HARM IMPROVEMENT...................................................      6,169     41,169      6,169      41,169
AVIATION IMPROVEMENTS..............................................     60,025     51,025     60,025      51,025
NAVY SCIENCE ASSISTANCE PROGRAM....................................  .........  .........     12,000      12,000
MARINE CORPS COMMUNICATIONS SYSTEMS................................     38,296     45,296     40,296      45,296
MARINE CORPS GROUND COMBAT/SUPPORTING ARMS SYSTEMS.................     12,568     14,668     12,568      14,668
DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)...................      3,165      1,198      3,165       1,198
INDUSTRIAL PREPAREDNESS............................................  .........     55,000     54,000      55,000
CLASSIFIED PROGRAM.................................................    488,489    531,489    188,489     494,989
ECONOMIC ASSUMPTIONS...............................................  .........  .........    -18,000     -18,000
----------------------------------------------------------------------------------------------------------------

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                  FY 98                                         
                                                                 budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES....................................     336,283     336,463      366,283      334,463 
    General reduction........................................  ..........     -39,820   ...........     -39,820 
    Molecular Design Institute...............................  ..........      10,000   ...........       8,000 
SURFACE SHIP TECHNOLOGY......................................      46,859      53,859       52,859       50,359 
    General reduction........................................  ..........      -5,000   ...........      -5,000 
    Power electronic building blocks.........................  ..........       6,000        6,000        6,000 
    Power node control centers...............................  ..........       1,500   ...........       1,500 
    Micromechanical systems/damage tolerant networks.........  ..........       2,500   ...........           0 
    Underwater vehicle derived control technology............  ..........       2,000   ...........       1,000 
READINESS, TRAINING, AND ENVIRONMENTAL QUALITY TECH..........      31,762      47,362       31,762       39,362 
    General reduction........................................  ..........      -3,000   ...........      -3,000 
    JMLS ACTD for sea-state 3 lighterage.....................  ..........      16,000   ...........       8,000 
    Smart aircrew integrated life support system.............  ..........       2,600   ...........       2,600 
MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY...............      76,653      73,653       80,153       75,503 
    General reduction........................................  ..........      -7,000   ...........     -10,000 
    Resin transfer molding/carbon fibers.....................  ..........       2,000        2,000        2,000 
    Composite storage capsule................................  ..........       2,000   ...........       2,000 
    Vacuum electronics.......................................  ..........  ...........      -4,000       -3,000 
    Photomagnetic research...................................  ..........  ...........         350          350 
    Plasma quench technology.................................  ..........  ...........       3,000        2,000 
    Advanced Material Intelligent Processing Center..........  ..........  ...........       2,500        2,500 
    Terfenol-D...............................................  ..........  ...........  ...........       3,000 
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY.....................      48,211      77,711       66,961       73,711 
    Autonomous underwater vehicle/sensor development.........  ..........      10,000   ...........      10,000 
    Ocean partnerships.......................................  ..........      16,000       16,000       12,000 
    Naval Surface Warfare Center South Florida Test Facility.  ..........       2,750        2,750        2,750 
    PM-10....................................................  ..........         750          750          750 
    Arctic research..........................................  ..........      (2,000)  ...........      (2,000)
UNDERSEA WARFARE WEAPONRY TECHNOLOGY.........................      35,736      31,736       43,736       37,736 
    General reduction........................................  ..........      -4,000   ...........      -4,000 
    COTS airgun as an acoustic source........................  ..........      (5,000)  ...........           0 
    6.25'' torpedo project...................................  ..........  ...........       4,000   ...........
    Undersea warfare and weapons technology..................  ..........  ...........       4,000        3,000 
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY..................      35,093      41,193       27,693       35,693 
    Maritime avionics subsystems and technology..............  ..........      11,500   ...........       7,000 
    Integrated high payoff rocket technology.................  ..........       2,000   ...........       1,000 
    General reduction........................................  ..........      -7,400   ...........      -7,400 
    Integrated HP turbine engine technology..................  ..........  ...........      -7,400   ...........
SHIP PROPULSION SYSTEM.......................................      39,737      34,737       49,737       49,737 
    Active control of machinery rafts........................  ..........       5,000   ...........       5,000 
    General reduction........................................  ..........     -10,000   ...........      -5,000 
    Composite helicopter hanger..............................  ..........  ...........      10,000       10,000 
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD).........      34,178      63,478       51,178       61,678 
    Commandant's Warfighting Lab.............................  ..........      20,300       15,000       17,500 
    SMAW-CS product improvement program......................  ..........       5,000   ...........       5,000 
    2 KW proton exchange membrane fuel cell..................  ..........       4,000   ...........       3,000 
    CARS.....................................................  ..........  ...........       2,000        2,000 
    Modeling/simulation......................................  ..........  ...........      (2,450)      (2,450)
MEDICAL DEVELOPMENT..........................................      18,332      72,732       19,632       70,232 
    Bone marrow..............................................  ..........      34,000   ...........      34,000 
    National Biodynamics Lab.................................  ..........       2,600   ...........       2,600 
    Biocide materials research...............................  ..........       5,500   ...........       5,500 
    Freeze dried blood.......................................  ..........       2,500        2,500        1,500 
    Dental research..........................................  ..........       4,000   ...........       2,000 
    Mobile medical monitor...................................  ..........       4,000   ...........       2,000 
    Rural health.............................................  ..........       3,000   ...........       3,000 
    Natural gas cooling/desiccant demonstration..............  ..........  ...........  ...........       2,500 
    Fleet health.............................................  ..........      -1,200       -1,200       -1,200 
MANPOWER, PERSONNEL AND TRAINING ADV TECH DEV................      18,812      20,502       20,042       22,502 
    Virtual reality environment/training research............  ..........       3,690        1,230        3,690 
    Center for integrated Manufacturing Studies..............  ..........  ...........  ...........       2,000 
    General reduction........................................  ..........      -2,000   ...........      -2,000 
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECH............      18,249      18,999       28,249       26,249 
    250KW proton exchange membrane fuel cell.................  ..........       1,750        1,750        1,750 
    Visualization of technical information...................  ..........       1,000        2,000        2,000 
    General reduction........................................  ..........      -2,000   ...........      -2,000 
    Smart base...............................................  ..........  ...........       6,250        6,250 
UNDERSEA WARFARE ADVANCED TECHNOLOGY.........................      54,785      46,385       46,385       49,385 
    General reduction........................................  ..........      -8,400   ...........           0 
    Shallow water surveillance technology....................  ..........  ...........      -3,000       -3,000 
    Beartrap advanced technology.............................  ..........  ...........      -5,400       -5,400 
    COTS airgun as an acoustic source........................  ..........  ...........  ...........       3,000 
ADVANCED TECHNOLOGY TRANSITION...............................      87,285      73,052       72,285       76,285 
    General reduction........................................  ..........     -18,233      -20,000      -20,000 
    High frequency surface wave radar........................  ..........       4,000       (4,000)       4,000 
    SWATH technology development.............................  ..........  ...........       5,000        5,000 
    Affordable array.........................................  ..........  ...........      (4,900)      (4,900)
ASW SYSTEMS DEVELOPMENT......................................      22,869      26,669       22,869       24,869 
    Geopositioning for the air deployable low frequency                                                         
     projector...............................................  ..........       3,800   ...........       2,000 
SURFACE AND SHALLOW WATER MINE COUNTERMEASURES...............      58,231      71,131       76,431       73,631 
    Remote minehunting system................................  ..........       7,900        7,900        7,900 
    Integrated combat weapon system..........................  ..........       5,000       10,300        7,500 
ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT................      61,122      62,422       61,122       62,422 
    Lightweight wide aperture advanced array, fiber optic....  ..........       4,000   ...........       4,000 
    Savings identified by GAO................................  ..........      -2,700   ...........      -2,700 
CARRIER SYSTEMS DEVELOPMENT..................................      98,587      10,187      115,587       20,587 
    CVX......................................................  ..........     -88,400   ...........     -78,000 
    CVN-77...................................................  ..........  ...........      17,000            0 
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT.......................      19,194      22,694       19,194       22,694 
    Direct carbonate fuel cell powerplant/ship electric                                                         
     service.................................................  ..........       3,500        1,000        3,500 
COOPERATIVE ENGAGEMENT.......................................     139,229     223,229      149,229      213,229 
    E-2/CEC integration......................................  ..........      20,000   ...........      10,000 
    TBMD/CEC integration.....................................  ..........      15,000   ...........      15,000 
    Low cost common equipment set............................  ..........      15,000   ...........      15,000 
    Reduced schedule risk/logistics support..................  ..........      13,000   ...........      13,000 
    SSDE/CEC integration.....................................  ..........       5,000   ...........       5,000 
    Hawk/CEC integration.....................................  ..........       5,000   ...........       3,000 
    Design agent transfer....................................  ..........       5,000   ...........           0 
    Fleet exercises..........................................  ..........       3,000   ...........       3,000 
    LAMPS data link..........................................  ..........       3,000   ...........           0 
    Space....................................................  ..........  ...........      10,000       10,000 
ENVIRONMENTAL PROTECTION.....................................      52,401      56,401       54,401       58,401 
    Resource recovery technology center......................  ..........       4,000   ...........       4,000 
    Asbestos removal.........................................  ..........  ...........       2,000        2,000 
    Hospital desiccant demonstration.........................  ..........  ...........      (1,500)           0 
FACILITIES IMPROVEMENT.......................................       1,720       6,720        1,720        6,720 
    Engineered lumber development............................  ..........       5,000   ...........       5,000 
    (NOTE: Funds for engineered lumber development are only                                                     
     to complete the ongoing effort already under contract by                                                   
     the Navy for cost-shared development and deployment of                                                     
     carbon fiber-reinforced, recycled thermoplastic                                                            
     engineered lumber which incorporates chemically treated                                                    
     waste-wood materials.)                                                                                     
LAND ATTACK TECHNOLOGY.......................................      37,809      81,909       37,809       60,809 
    Extended range guided munition...........................  ..........      15,100   ...........       8,000 
    MEMS guidance and control................................  ..........       5,000   ...........       2,000 
    Land attack Standard Missile.............................  ..........       4,000   ...........       3,000 
    Navy ATACMS..............................................  ..........      20,000   ...........      10,000 
JOINT STRIKE FIGHTER (JSF)--DEM/VAL..........................     448,855     448,855      476,855      463,855 
    Eddy current sensor/eddy current array sensor............  ..........      (6,000)  ...........      (6,000)
    Engine turbine fan improvement...........................  ..........      (1,000)  ...........      (1,000)
    Alternative engine.......................................  ..........  ...........      28,000       15,000 
    (NOTE: Projects which are directed to be funded from                                                        
     within available funds may not be financed by decrements                                                   
     to DARPA programs.)                                                                                        
OTHER HELO DEVELOPMENT.......................................      73,354      85,354      113,304      130,191 
    SH-60R block II..........................................  ..........       7,000       25,000       15,000 
    Air interoperability center..............................  ..........       5,000        5,000        5,000 
    Parametric airborne dipping sonar........................  ..........  ...........      10,000        5,000 
    CH-60 development........................................  ..........  ...........  ...........      31,837 
    (NOTE: CH-60 funds are transferred form Aircraft                                                            
     Procurement, Navy)......................................                                                   
STANDARDS DEVELOPMENT........................................      36,297      40,297       38,297       38,297 
    Ground Proximity Warning System..........................  ..........       4,000   ...........           0 
    ICAS.....................................................  ..........  ...........       2,000        2,000 
    (NOTE: Funds for ground proximity warning system are                                                        
     funded in Aircraft Procurement, Navy)...................                                                   
S-3 WEAPON SYSTEM IMPROVEMENT................................       4,735       4,735          930          930 
    Common support aircraft..................................  ..........  ...........      -3,805       -3,805 
    (NOTE: Reduction to common support aircraft is made                                                         
     without prejudice.).....................................                                                   
EW DEVELOPMENT...............................................     101,803     104,603       91,127       99,127 
    Precision targeting......................................  ..........       2,800   ...........       2,000 
    Joint emitter targeting system...........................  ..........  ...........      -2,000       -2,000 
    Common missile warning system............................  ..........  ...........      -6,000            0 
    ICAP III.................................................  ..........  ...........      -2,676       -2,676 
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING..................      87,934     142,134      122,934      148,134 
    TBMD/UYQ-70 architecture.................................  ..........      43,000   ...........      38,000 
    Program shortfalls.......................................  ..........      14,000   ...........           0 
    Postponed sea test.......................................  ..........      -2,800   ...........      -2,800 
    High power discriminator.................................  ..........  ...........      35,000       25,000 
NEW DESIGN SSN...............................................     311,076     331,076      316,076      323,076 
    ASTECS/integrated mast...................................  ..........      17,000   ...........       8,000 
    Sonar domes..............................................  ..........       3,000        5,000        4,000 
SHIP CONTRACT DESIGN/LIVE FIRE T&E...........................      75,713      64,713      100,713       92,713 
    CVN-77...................................................  ..........      17,000   ...........      17,000 
    DD-21....................................................  ..........     -28,000       25,000            0 
NAVY TACTICAL COMPUTER RESOURCES.............................       4,794      39,294        4,794       35,294 
    UYQ-70 for submarines....................................  ..........      17,500   ...........      17,500 
    Virtual prototyping of electronic circuits...............  ..........      10,000   ...........       6,000 
    UYQ-70 for USMC expeditionary force......................  ..........       7,000   ...........       7,000 
NAVY ENERGY PROGRAM..........................................       2,088       2,088        4,588        2,088 
    Natural gas cooling/desiccant demonstration..............  ..........  ...........       2,500            0 
    (NOTE: Funds for natural gas cooling/desiccant                                                              
     demonstration are provided in Medical Development)......                                                   
SHIP SELF DEFENSE--EMD.......................................     132,270     190,870      134,270      163,270 
    QRCC.....................................................  ..........      19,000   ...........      10,000 
    Test ship................................................  ..........      12,000   ...........       6,000 
    Wallops Island test operatIons...........................  ..........       8,600   ...........       4,000 
    SPQ-9B...................................................  ..........       9,000   ...........       5,000 
    IRST.....................................................  ..........      10,000   ...........       4,000 
    Nulka....................................................  ..........  ...........       2,000        2,000 
DISTRIBUTED SURVEILLANCE SYSTEM..............................      33,048      43,448       23,048       43,448 
    AODS integration into ADS................................  ..........       7,800   ...........       7,800 
    ADS algorithms...........................................  ..........       2,600   ...........       2,600 
    General reduction........................................  ..........  ...........     -10,000            0 
TARGET SYSTEMS DEVELOPMENT...................................      48,308      45,408       45,308       45,408 
    Non-cooperative airborne vector scorer...................  ..........      -2,900   ...........      -2,900 
    General reduction........................................  ..........  ...........      -3,000            0 
TEST AND EVALUATION SUPPORT..................................     263,934     235,908      251,934      246,934 
    General reduction........................................  ..........     -30,026      -12,000      -18,000 
    Safety items.............................................  ..........       2,000   ...........       1,000 
F/A-18 SQUADRONS.............................................     316,976     207,776      290,976      293,976 
    Management reserves......................................  ..........    -114,200      -26,000      -26,000 
    TARPS....................................................  ..........       5,000   ...........       3,000 
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT....................      58,956      36,456       63,956       68,956 
    JTCTS....................................................  ..........     -27,500   ...........           0 
    BFTT.....................................................  ..........       5,000   ...........       5,000 
    PMRF sensors.............................................  ..........  ...........       5,000        5,000 
INDUSTRIAL PREPAREDNESS......................................           0      55,000       54,000       55,000 
    General increase.........................................  ..........      55,000       50,000   ...........
    Center for Integrated Manufacturing Studies..............  ..........  ...........       4,000            0 
    (NOTE: Funds for the Center for Integrated Manufacturing                                                    
     Studies is provided in Manpower, Personnel, and Training                                                   
     Advanced Technology Development.).......................                                                   
----------------------------------------------------------------------------------------------------------------

                          aircraft technology

      The conferees direct that the Navy Vectored Thrust Ducted 
Propeller (VTDP) compound helicopter program focus the current 
VTDP technology development program on utilization of the H-60 
helicopter as the demonstration platform. The conferees further 
direct that from within available funds $200,000 is only for 
the Navy's H-60 program office (PMA-299) to manage the VTDP 
program and all current and prior year funds appropriated for 
this program.

            materials, electronics, and computer technology

      The conferees agree to provide $3,000,000 for Terfenol-D, 
which is used in Navy sonar programs. The conferees direct that 
this amount shall be available only to allow the Navy to 
achieve further cost reductions in the application of a 
magnetostrictive, iron/terbium/dysprosium alloy for new high 
performance sonar systems. The conferees further direct that 
such effort shall be undertaken through a partnership between 
an entity which has made a financial commitment and has 
experience in the production of such an alloy and the National 
Center for Excellence in Metal Working Technology.

                      navy aircrew ejection seats

      The conferees believe the Navy must place greater 
emphasis on aircrew protection and safety, a problem that is of 
growing concern with the introduction of lighter-weight crew 
members. In fiscal year 1997, the Congress appropriated an 
additional $5,000,000 to initiate Phase II of the Navy Aircrew 
Escape System (NACES) P3I program. The conferees are 
disappointed that this effort has not yet begun, particularly 
in light of technological advancements in propulsive 
stabilization and sensors that could substantially decrease the 
technical risk of resolving the safety shortcomings of the 
NACES. These same advances may also be applicable to making 
needed safety improvements in the GRU-7 seat flying in the EA-
6B aircraft.
      The conferees are aware of Navy plans to restructure the 
NACES P3I program. While voicing no objection at this time, the 
conferees expect that the restructured effort be conducted in a 
manner to include a flight demonstration of the life-saving 
benefits of these technologies to existing ejection seats, and 
that EMD planning for introduction to the fleet be completed. 
The conference agreement includes an additional $6,000,000 only 
to accelerate the NACES P3I program to include demonstrated 
propulsive stabilization solutions.

   non-magnetic, stainless steel advanced double hull warship design

      The conferees note the technical challenge that the Navy 
faces in the design and manufacture of very large and complex 
structural systems that have historically been made of 
traditional steel materials but are now incorporating the use 
of more advanced materials like non-magnetic steels. The 
joining of the advanced double hull concept with non-magnetic 
steel offers the potential to reduce acquisition and operation 
costs and to improve survivability. The conferees direct the 
Navy to study this design on the DD-21 and to explore the 
opportunities available with existing Centers of Excellence 
that have capability in non-magnetic, stainless steel advanced 
double hull warship design.

                    distributed surveillance system

      The conferees agree to provide $43,448,000, of which 
$7,800,000 shall be for the testing and packaging of the all-
optical deployable system into an advanced deployable system 
(ADS) and at least $7,000,000 shall be for the development of 
signal processing and detection algorithms for the ADS.

         Research, Development, Test and Evaluation, Air Force

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                             Budget         House        Senate      Conference 
----------------------------------------------------------------------------------------------------------------
    RESEARCH DEVELOPMENT TEST & EVAL AF:................                                                        
    DEFENSE RESEARCH SCIENCES...........................       226,832       183,332       222,249       207,249
    MATERIALS...........................................        70,224        73,224        71,224        73,224
    ARMSTRONG LAB EXPLORATORY DEVELOPMENT...............        76,102        76,102        79,102        76,102
    AEROSPACE PROPULSION................................        69,303        69,303        60,577        60,577
    AEROSPACE AVIONICS..................................        69,401        68,061        66,484        64,144
    HYPERSONIC TECHNOLOGY PROGRAM.......................         9,840         9,840        12,840         9,840
    PHILLIPS LAB EXPLORATORY DEVELOPMENT................       111,136       131,636       112,009       127,259
    COMMAND CONTROL AND COMMUNICATIONS..................        86,067        89,067        86,067        88,567
    ADVANCED MATERIALS FOR WEAPON SYSTEMS...............        20,596        26,596        30,096        28,096
    AEROSPACE PROPULSION SUBSYSTEMS INTEGRATION.........        30,564        28,318        27,031        24,785
    AEROSPACE STRUCTURES................................        15,032        10,423        15,032        10,423
    AEROSPACE PROPULSION AND POWER TECHNOLOGY...........        37,014        37,014        35,183        35,183
    CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY....        17,204        26,204        17,204        26,204
    FLIGHT VEHICLE TECHNOLOGY INTEGRATION...............         7,795         6,423         7,795         6,423
    ELECTRONIC COMBAT TECHNOLOGY........................        25,621        30,871        24,121        34,371
    SPACE AND MISSILE ROCKET PROPULSION.................        16,247        30,047        16,247        18,147
    BALLISTIC MISSILE TECHNOLOGY........................  ............         8,000  ............         8,000
    ADVANCED SPACECRAFT TECHNOLOGY......................        40,846        72,846       100,846        98,346
    CONVENTIONAL WEAPONS TECHNOLOGY.....................        26,227        28,227        23,187        24,687
    ADVANCED WEAPONS TECHNOLOGY.........................        41,238        56,238        59,238        55,238
    C3 ADVANCED DEVELOPMENT.............................        12,897        12,897        13,897        13,647
    ADVANCED MILSATCOM (SPACE)..........................        41,448        41,000        41,448        41,000
    POLAR ADJUNCT (SPACE)...............................        29,585  ............        29,585        15,000
    NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL                                                           
     SAT................................................        51,504        26,504        51,504        34,004
    SPACE BASED INFRARED ARCHITECTURE (SPACE)--DEM/VAL..       222,401       217,401       222,401       217,401
    NATO RESEARCH AND DEVELOPMENT.......................        13,433  ............        13,433        11,000
    INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.........        32,837        49,337        32,837        49,337
    GLOBAL BROADCAST SERVICE............................        56,977        46,977        56,977        56,977
    VARIABLE STABILITY IN-FLIGHT SIMULATOR TEST AIRCRAFT  ............  ............         8,000         6,000
    INTEGRATED AVIONICS PLANNING AND DEVELOPMENT........        16,494        12,994        16,494        16,494
    B-1B................................................       216,886       222,886       216,886       220,886
    SPECIALIZED UNDERGRADUATE PILOT TRAINING............        80,238        77,238        80,238        72,238
    F-22 EMD............................................     2,071,234     2,077,234     1,858,234     2,077,234
    EW DEVELOPMENT......................................        78,465        65,965        82,308        80,465
    MUNITIONS DISPENSER DEVELOPMENT.....................        18,076        15,900        18,076        19,676
    JOINT DIRECT ATTACK MUNITION........................        19,553        15,353        19,553        24,553
    LIFE SUPPORT SYSTEMS................................         3,726         5,726         3,726         4,726
    COMPUTER RESOURCE TECHNOLOGY TRANSITION (CRTT)......         1,459         6,459         1,459         4,459
    JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM).......       203,321  ............       107,021       128,000
    JSLAM...............................................  ............        63,000  ............        43,021
    THREAT SIMULATOR DEVELOPMENT........................        51,846        50,346        56,746        54,346
    MAJOR T&E INVESTMENT................................        47,336        62,136        41,336        56,336
    TEST AND EVALUATION SUPPORT.........................       389,348       386,348       389,348       387,848
    DEVELOPMENT PLANNING................................         6,049         6,049         4,549         4,549
    POLLUTION PREVENTION................................         5,880         5,880        10,880         9,880
    ROCKET SYSTEMS LAUNCH PROGRAM (SPACE)...............         8,013        33,013         8,013        28,013
    MAINTENANCE AND REPAIR (RPM)--RDT&E.................        55,200        55,200        58,000        56,000
    ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM)...        50,781        33,781        50,781        43,781
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM.......        93,122       115,122        93,122       103,122
    AGM-86C CONVENTIONAL AIR-LAUNCHED CRUISE MISSILE SYS  ............         3,500         3,500  ............
    AIRBORNE WARNING AND CONTROL SYSTEM (AWACS).........        46,807        47,807        46,807        46,807
    ADVANCED PROGRAM TECHNOLOGY.........................        95,056        95,056        71,556       100,056
    THEATER BATTLE MANAGEMENT (TBM) C4I.................        24,013        24,013        28,013        27,013
    JOINT SURVEILLANCE AND TARGET ATTACK RADAR SYSTEM...       119,189       123,189       124,189       126,189
    ADVANCED PROGRAM EVALUATION.........................       214,011       224,011       205,219       223,019
    WORLD-WIDE MILITARY COMMAND AND CONTROL SYSTEMS.....         6,820         7,820         6,820         7,820
    AIR TRAFFIC CONTROL, APPROACH, AND LANDING SYSTEM...         6,571         6,571        13,471        13,471
    SECURITY AND INVESTIGATIVE ACTIVITIES...............           530         1,530           530         3,530
    TITAN SPACE LAUNCH VEHICLES (SPACE).................        82,384        67,384        82,384        74,884
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.............  ............        14,990  ............        14,990
    SPACETRACK (SPACE)..................................        28,573        28,573        36,073        43,073
    C-17 AIRCRAFT.......................................       113,605       113,605       113,605       110,605
    AIR CARGO MATERIAL HANDLING (463-L) (NON-IF)........         7,947         3,447         7,947         5,947
    PRODUCTIVITY, RELIABILITY, AVAILABILITY, MAINTAIN                                                           
     PRO................................................         1,032        12,032        11,032        19,032
    NATO JOINT STARS....................................        36,061        18,061        23,061        26,061
    COBRA BALL (FLD)....................................  ............  ............        12,000        12,000
    CLASSIFIED PROGRAM..................................     4,684,348     4,633,315     4,640,248     4,648,415
    ECONOMIC ASSUMPTIONS................................  ............  ............       -76,000       -76,000
    GENERAL REDUCTION...................................  ............        -2,000  ............  ............
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                              Budget        House        Senate      Conference 
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences................................      226,832      183,332       222,249       207,249 
    Reduction............................................  ...........      -48,500   ............      -18,000 
    Center for Adaptive Optics...........................  ...........        5,000   ............        3,000 
    Sacramento Peak Observatory..........................  ...........         (650)         (650)         (650)
    Math and computer science............................  ...........  ............       -2,755        -2,755 
    Electronics..........................................  ...........  ............       -1,828        -1,828 
Materials................................................       70,224       73,224        71,224        73,224 
    Composite shelters...................................  ...........        3,000   ............        2,000 
    Inorganic/organic optical limiters...................  ...........  ............        1,000         1,000 
Aerospace Propulsion.....................................       69,303       69,303        60,577        60,577 
    Turbine engine technology............................  ...........  ............       -6,861        -6,861 
    High thermal stability hydrocarbon fuel..............  ...........  ............       -1,865        -1,865 
Aerospace Avionics.......................................       69,401       68,061        66,484        64,144 
    Reduction............................................  ...........       -1,340   ............       -1,340 
    Photonic and A-to-D Technology.......................  ...........  ............       -2,701        -2,701 
    Intertial navigation unit components.................  ...........  ............       -3,216        -3,216 
    Environmental laser mapping..........................  ...........  ............        3,000         2,000 
Hypersonic Technology Program............................        9,840        9,840        12,840         9,840 
    Hypersonic wind tunnel design study..................  ...........  ............        3,000             0 
Phillips Lab Exploratory Development.....................      111,136      131,636       112,009       127,259 
    Phase III terabit fiber optic technology.............  ...........        8,000   ............        6,000 
    Mightysat............................................  ...........       10,000   ............        5,000 
    IHPRPT...............................................  ...........        7,500         2,000         4,750 
    Tactical missile propulsion..........................  ...........  ............       -3,127        -3,127 
    Coherent laser diode arrays..........................  ...........  ............       -3,000        -1,500 
    HAARP................................................  ...........  ............        5,000         5,000 
Command Control and Communications.......................       86,067       89,067        86,067        88,567 
    Protein memory.......................................  ...........        3,000   ............        2,500 
Advanced Materials for Weapon Systems....................       20,596       26,596        30,096        28,096 
    IR signature suppresion coatings.....................  ...........        6,000         6,000         5,000 
    Electrochemical fatigue sensing with mechanical                                                             
     stimulation for turbines............................  ...........  ............        3,500         2,500 
Aerospace Propulsion Subsystems Integration..............       30,564       28,318        27,031        24,785 
    Reduction............................................  ...........       -2,246   ............       -2,246 
    Aircraft propulsion subsystem........................  ...........  ............       -3,533        -3,533 
Aerospace Structures.....................................       15,032       10,423        15,032        10,423 
    Reduction............................................  ...........       -4,609   ............       -4,609 
Aerospace Propulsion and Power Technology................       37,014       37,014        35,183        35,183 
    Advanced turbine engine gas generator................  ...........  ............       -1,831        -1,831 
Crew Systems and Personnel Protection Technology.........       17,204       26,204        17,204        26,204 
    Ejection seat technology.............................  ...........        5,000   ............        5,000 
    Helmet display technology............................  ...........        3,000   ............        3,000 
    Laser eye protection.................................  ...........        1,000   ............        1,000 
Flight Vehicle Technology Integration....................        7,795        6,423         7,795         6,423 
    Reduction............................................  ...........       -1,372   ............       -1,372 
Electronic Combat Technology.............................       25,621       30,871        24,121        34,371 
    CLIRCM...............................................  ...........        5,250   ............        3,750 
    Laser based IR countermeasures.......................  ...........  ............       -1,500             0 
    ALR-69 PLAID.........................................  ...........  ............  ............        5,000 
Space and Missile Rocket Propulsion......................       16,247       30,047        16,247        18,847 
    IHPRPT...............................................  ...........        3,800   ............        1,900 
    Scorpius.............................................  ...........       10,000   ............            0 
Ballistic Missile Technology.............................            0        8,000             0         8,000 
    Radiation hardened electronics.......................  ...........        8,000   ............        3,200 
    Missile Technology Demonstration (MTD) flight testing  ...........  ............  ............        4,800 
Advanced Spacecraft Technology...........................       40,846       72,846       100,846        98,346 
    Military spaceplane..................................  ...........       15,000   ............       10,000 
    Solar thermionics orbital transfer vehicle...........  ...........       10,000        10,000         7,500 
    Miniature threat satellite reporting system..........  ...........        7,000   ............        5,000 
    Clementine...........................................  ...........  ............       50,000        30,000 
    Scorpius (transfer from Space and Missile Rocket                                                            
     Propulsion).........................................  ...........  ............  ............        5,000 
Conventional Weapons Technology..........................       26,227       28,227        23,187        24,687 
    Optical correlator technology........................  ...........        2,000   ............        1,500 
    Next generation air to air threats...................  ...........  ............       -3,040        -3,040 
Advanced Weaons Technology...............................       41,238       56,238        59,238        55,238 
    Geo space object imaging.............................  ...........       10,000        15,000        10,000 
    LIME.................................................  ...........        5,000   ............            0 
    High energy laser technology.........................  ...........  ............       -3,000        -2,000 
    Field LADAR Demonstrator (FLD) upgrades..............  ...........  ............        6,000         6,000 
C3 Advanced Development..................................       12,897       12,897        13,897        13,647 
    Survivable asynchronous transfer mode................  ...........  ............        1,000           750 
Advanced MILSATCOM (SPACE)...............................       41,448       41,000        41,448        41,000 
    Program management...................................  ...........         -448   ............         -448 
National Polar-Orbiting Operational Environment..........       51,504       26,504        51,504        34,004 
    Schedule delays......................................  ...........      -25,000   ............      -17,500 
Space and Missile Rocket Propulsion......................      222,401      217,401       222,401       217,401 
    Program management and FFRDC.........................  ...........       -5,000   ............       -5,000 
NATO Research and Development............................       13,433            0        13,433        11,000 
    Reduction............................................  ...........      -13,433   ............       -2,433 
Intercontinental Ballistic Missile--DEMVAL...............       32,837       49,337        32,837        49,337 
    Conventional ballistic missle........................  ...........       16,500   ............       16,500 
Global Broadcast Service.................................       56,977       46,977        56,977        56,977 
    Schedule delays......................................  ...........      -10,000   ............            0 
Integrated Avionics Planning and Development.............       16,494       12,994        16,494        16,494 
    JHMCS EMD Award......................................  ...........       -3,500   ............            0 
B-1B.....................................................      216,886      222,886       216,886       220,886 
    ECOs.................................................  ...........       -7,000   ............       -4,000 
    JSOW/JSLAM Integration...............................  ...........       13,000   ............        8,000 
Specialized Undergraduate Pilot Training.................       80,238       77,238        80,238        72,238 
    T-38 schedule delays.................................  ...........       -3,000   ............       -3,000 
    JPATS GBTS contract savings..........................  ...........  ............  ............       -5,000 
F-22 EMD.................................................    2,071,234    2,077,234     1,858,234     2,077,234 
    Out of Production Parts (OPP) redesign...............  ...........        6,000   ............        6,000 
    Termination liability................................  ...........  ............     -213,000             0 
EW Development...........................................       78,465       65,965        82,308        80,465 
    F-15 IDECM delay.....................................  ...........       -6,000   ............       -3,000 
    F-15 CMWS............................................  ...........       -6,500   ............       -2,000 
    CMWS.................................................  ...........  ............       -6,157             0 
    Advanced flares for the C-17 and B-1.................  ...........  ............       10,000         7,000 
Munitions Dispenser Development..........................       18,076       15,900        18,076        19,676 
    WCMD Contract Savings................................  ...........       -1,300   ............       -1,300 
    WCMD operational assets..............................  ...........         -862   ............         -862 
    Transfer savings from procurement account............  ...........  ............  ............        3,762 
Joint Direct Attack Munition.............................       19,553       15,353        19,553        24,553 
    Excess funds.........................................  ...........       -4,200   ............            0 
    Transfer from procurement............................  ...........  ............  ............        5,000 
Life Support Systems.....................................        3,726        5,726         3,726         4,726 
    Ejection seats.......................................  ...........        2,000   ............        1,000 
Computer Resource Technology Transition (CRTT)...........        1,459        6,459         1,459         4,459 
    NPLACE/PLAS..........................................  ...........        5,000   ............        3,000 
Intercontinental Ballistic Missile--EMD..................      137,944      152,944       152,944       152,944 
    MK-21 Guidance Replacement Program...................  ...........       15,000        15,000        15,000 
Joint Air-to-Surface Standoff Missile (JASSM)............      203,321            0       107,021       128,000 
    Cancel program.......................................  ...........     -203,321   ............            0 
    Weapon system development............................  ...........  ............      -18,200             0 
    Test support.........................................  ...........  ............      -49,400             0 
    Program office/mission support.......................  ...........  ............      -10,900             0 
    Aircraft integration costs...........................  ...........  ............      -17,800             0 
    Alternate engine source study........................  ...........  ............        (5000)        1,000 
    Reduction pending AOA decision.......................  ...........  ............  ............      -76,321 
JSLAM....................................................            0       63,000             0        43,021 
Threat Simulator Development.............................       51,846       50,346        56,746        54,346 
    SADS-2b/f............................................  ...........       -1,500   ............       -1,500 
    Digital integrated air defense system................  ...........  ............        2,400         2,000 
    Digital IADS integration with ECIT...................  ...........  ............        2,000         1,500 
    Airborne radar maintenance...........................  ...........  ............          500           500 
Major T&E Investment.....................................       47,336       62,136        41,336        56,336 
    Modernization of Eglin range C4I capabilities........  ...........       14,800   ............       10,000 
    Reduction............................................  ...........  ............       -6,000        -3,000 
    Hypersonic wind tunnel design study (transfer from                                                          
     0602269F)...........................................  ...........  ............  ............        2,000 
Test and Evaluation Support..............................      389,348      386,348       389,348       387,848 
    Unjustified aircraft support growth..................  ...........       -3,000   ............       -1,000 
    Prior year unobligated funds.........................  ...........       -8,000   ............       -6,500 
    South Base Birk flight test facility.................  ...........        8,000   ............        6,000 
Development Planning.....................................        6,049        6,049         4,549         4,549 
    Reduction............................................  ...........  ............       -1,500        -1,500 
Pollution Prevention.....................................        5,880        5,880        10,880         9,880 
    E-SMART..............................................  ...........  ............        5,000         4,000 
Maintenance and Repair (RPM)--RDT&E......................       55,200       55,200        58,000        56,000 
    Landing gear life extension..........................  ...........  ............        6,000         4,000 
    Infrastructure support...............................  ...........  ............       -3,200        -3,200 
Advanced Medium Range Air-to-Air Missile (AMRAAM)........       50,781       33,781        50,781        43,781 
    Rephased upgrade efforts.............................  ...........      -14,000   ............       -4,000 
    P3I Phase III........................................  ...........       -3,000   ............       -3,000 
AGM-86C Conventional Air Launched Cruise Missile.........            0        3,500         3,500             0 
    Hard target penetrator variant.......................  ...........        3,500         3,500             0 
Airborne Warning and Control System (AWACS)..............       46,807       47,807        46,807        46,807 
    Extend Sentry........................................  ...........        1,000   ............            0 
Theater Battle Management (TBM) C4I......................       24,013       24,013        28,013        27,013 
    Theater Battle Management Core Systems (TBMCS).......  ...........  ............        4,000         3,000 
Joint Surveillance and Target Attack Radar System........      119,189      123,189       124,189       126,189 
    Improved Data Modem..................................  ...........        4,000   ............        4,000 
    Cruise missile defense technology....................  ...........  ............        5,000         3,000 
World-Wide Military Command and Control Systems..........        6,820        7,820         6,820         7,820 
    Integration of JSAS into GCCS........................  ...........        1,000   ............        1,000 
Air Traffic Control, Approach, and Landing System........        6,571        6,571        13,471        13,471 
    Air traffic control simulators.......................  ...........  ............        6,900         6,900 
Security and Investigative Activities....................          530        1,530           530         3,530 
    AFOSI computer crime investigations program..........  ...........        1,000   ............        1,000 
    Defensive Information Warfare and Critical                                                                  
     Infrastructure Protection...........................  ...........  ............  ............        2,000 
SPACETRACK (SPACE).......................................       28,573       28,573        36,073        43,073 
    AEOS development and integration with MSSS...........  ...........  ............        7,500         7,500 
    Have Stare upgrade to support missile defense testing  ...........  ............  ............        7,000 
Air Cargo Material Handling..............................        7,947        3,447         7,947         5,947 
    Next Generation Small Loader test funding                                                                   
     requirements........................................  ...........       -4,500   ............       -2,000 
Industrial Preparedness..................................       48,429       48,429        48,429        48,429 
    National Technology Transfer Center..................  ...........        (1000)  ............            0 
Productivity, Reliability, Availability, Maintainability                                                        
 Program.................................................        1,032       12,032        11,032        19,032 
    Aging aircraft improvements..........................  ...........       11,000   ............       10,000 
    Blade repair facility................................  ...........  ............       10,000         8,000 
NATO JSTARS..............................................       36,061       18,061        23,061        26,061 
    Lack of NATO decision................................  ...........      -18,000   ............            0 
    Phase II proposal preparation........................  ...........  ............       -3,000        -3,000 
    Interim logistics support long lead..................  ...........  ............      -10,000        -7,000 
COBRA BALL (FLD).........................................            0            0        12,000        12,000 
    Advanced Airborne Sensor.............................  ...........  ............       12,000        12,000 
----------------------------------------------------------------------------------------------------------------

                     advanced spacecraft technology

      The conferees recommend a Solar Thermionic Orbital 
Transfer Vehicle program that balances designing the flight 
demonstrator with further development of key technologies 
including thermionics, high temperature materials for power and 
propulsion, and direct gain propulsion utilizing lightweight 
inflatable collectors.

   national polar-orbiting operations environmental satellite system

                                (npoess)

      The conferees agree to provide $34,004,000 for the 
National Polar-Orbiting Operational Environmental Satellite 
System (NPOESS), a decrease of $17,500,000. The conferees 
direct the Deputy Under Secretary of Defense for Space (DUSD 
(Space)) to conduct an architectural review of the defense 
space-based meteorological mission area as part of the fiscal 
year 1998 program plan. DUSD (Space) is further directed to 
submit to the conferees a report detailing its plans to conduct 
the review no later than January 1, 1998.

                  space based infrared system (SBIRS)

      The conferees are concerned that the Air Force has 
retained the present developer of the SBIRS high component as 
the overall system of systems engineer for the entire program. 
The conferees believe that the potential exists for conflict of 
interest since the SBIRS high component developer will compete 
for the SBIRS low component of the program.
      While the Air Force has taken certain measures to attempt 
to ensure the fairness of the SBIRS low competition, the 
conferees believe that it would be appropriate for the Under 
Secretary of Defense for Acquisition and Technology to review 
any Air Force implementation plan formulated to avoid conflicts 
of interest in the SBIRS low component competition. The 
conferees therefore, direct the USD (A&T) to certify to the 
congressional defense committees that the Air Force's ``SBIRS 
Organizational Conflict of Interest Mitigation Plan for the 
SBIR Low Component Program'' adequately safeguards the 
objectivity of the competition for the SBIR Low program. If it 
is determined that the Air Force's risk mitigation plan does 
not ensure a fair competition, the congressional defense 
committees shall be notified and provided such recommendations 
as the USD (A&T) determines are necessary to ensure a fair 
competition, protect proprietary data, and mitigate potential 
SBIR high component program developer bias. The certification 
shall be provided no later than March 31, 1998.
      The conferees further direct that the Deputy Under 
Secretary of Defense for Space, DUSD (Space), review any final 
allocation of requirements between the SBIRS high and low 
component to determine whether such allocations are justified 
on the basis of cost and performance. The conferees direct that 
the results of this review be provided to the congressional 
defense committees.

                evolved expendable launch vehicle (eelv)

      The conferees note that the Evolved Expendable Launch 
Vehicle (EELV) program is an important step in reducing the 
Department of Defense's space launch costs, and that two 
industry teams are now competing for a contract to develop an 
EELV. The conferees believe that the Air Force should require 
that a successful bidder share in the development cost of the 
EELV, system. In addition the conferees expect that the Air 
Force will recognize the commercial requirements of the EELV 
and allow industry to develop system solutions to meet these 
needs. Therefore, the conferees agree to the House language 
which directs the Air Force to include as significant factors 
in the EELV acquisition the degree to which the competitive 
proposals include the commercial needs of the U.S. launch 
vehicle industry as well as government compensation and cost 
recoupment offers from the EELV competitors. The Under 
Secretary of Defense for Acquisition and Technology is also 
directed to provide the congressional defense committees not 
later than June 1, 1998, a revised EELV Single Acquisition and 
Management Plan (SAMP) that addresses these concerns.

                 joint air-to-surface standoff missile

                   joint standoff land attack missile

      The conferees have provided a total of $171,021,000 for 
the Joint Air-to-Surface Standoff Missile (JASSM)/Joint 
Standoff Land Attack Missile (JSLAM) program. Within the JASSM 
program element, the conferees direct that the first priority 
for the available funds shall be to maintain competition on the 
program and to avoid an early decision to select a single 
contractor. The funds within this program element are provided 
to continue the JASSM program through completion of the 
Analysis of Alternatives (AOA).
      The conferees have also provided $43,021,000 in a JSLAM 
program element. The conferees direct that none of the JSLAM 
funds may be obligated until the Secretary of Defense notifies 
the congressional defense committees regarding the acquisition 
strategy the Defense Department chooses to pursue based on the 
results of the JASSM AOA. The conferees direct that the JSLAM 
program element funds shall be available for the option 
recommended by the Secretary of Defense.

                         cruise missile defense

      The conferees are concerned about the growing threat 
posed by advanced air-launched and surface-launched cruise 
missiles and urge the Department to pursue an enhanced 
capability on the AWACS to detect, track, and identify cruise 
missiles. The conferees direct the Air Force to provide a 
report on their specific schedule and funding plans for 
continued development of this needed capability.

                              nato jstars

      The conferees agree that none of the funds can be 
reprogrammed out of the NATO JOINT STARS program element 
without the prior approval of the congressional defense 
committees. The conferees agree to place no further 
restrictions on these funds.

        Research, Development, Test and Evaluation, Defense-wide

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
  RESEARCH DEVELOPMENT TEST & EVAL DEFWIDE                                                                      
    IN-HOUSE LABORATORY INDEPENDENT RESEARCH....           2,169  ..............           2,169           1,569
    DEFENSE RESEARCH SCIENCES...................          76,009          70,000          76,009          70,000
    UNIVERSITY RESEARCH INITIATIVES.............         237,788         215,212         251,788         230,788
    GOVERNMENT/INDUSTRY COSPONSORSHIP OF UNIV                                                                   
     RESEARCH...................................          14,713  ..............           9,713           7,713
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....          25,190          28,690          25,190          27,190
    NEXT GENERATION INTERNET....................          40,000          50,000          10,000          42,000
    SUPPORT TECHNOLOGIES--APPLIED RESEARCH......         101,932         141,932         115,932         113,932
    LINCOLN LABORATORY RESEARCH PROGRAM.........          20,474          13,730          20,474          18,474
    COMPUTING SYSTEMS AND COMMUNICATIONS                                                                        
     TECHNOLOGY.................................         341,752         325,057         344,252         327,557
    BIOLOGICAL WARFARE DEFENSE..................          61,600          61,600          55,100          59,600
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....          60,023          75,323          66,023          73,023
    TACTICAL TECHNOLOGY.........................         157,329         126,244         158,329         151,329
    INTEGRATED COMMAND AND CONTROL TECHNOLOGY...          37,000          39,000          55,000          49,000
    MATERIALS AND ELECTRONICS TECHNOLOGY........         192,192         208,192         224,692         237,692
    DEFENSE SPECIAL WEAPONS AGENCY..............         211,971         200,593         226,971         212,593
    DEMINING....................................           7,663           7,663          18,063          16,663
    COUNTERTERROR TECHNICAL SUPPORT.............          34,863          34,863          40,863          40,863
    COUNTERPROLIFERATION SUPPORT--ADV DEV.......          58,264          67,264          61,264          68,264
    SUPPORT TECHNOLOGIES--ADVANCED TECHNOLOGY                                                                   
     DEVELOPMENT................................         147,557         147,557         351,957         311,557
    JOINT DOD-DOE MUNITIONS TECHNOLOGY                                                                          
     DEVELOPMENT................................          16,141          16,141          17,700          17,700
    AUTOMATIC TARGET RECOGNITION................           4,789           5,989           4,789           6,789
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--                                                                   
     ADVANCED DEV...............................          41,223          50,773          41,233          41,223
    SPECIAL TECHNICAL SUPPORT...................          11,750           9,750          14,750          11,750
    VERFICATION TECHNOLOGY DEMONSTRATION........          83,370          69,070          73,370          84,370
    GENERIC LOGISTICS R&D TECHNOLOGY                                                                            
     DEMONSTRATIONS.............................          17,267          23,867          24,867          22,267
    STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM....          54,874          61,874          57,874          61,874
    JOINT WARFIGHTING PROGRAM...................          14,172          14,172           9,172           9,172
    AGILE PORT DEMONSTRATION....................  ..............  ..............          10,000           5,000
    ADVANCED ELECTRONICS TECHNOLOGIES...........         277,044         285,044         295,044         299,044
    ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS..         121,076          61,076         101,076          81,076
    COMMERCIAL TECHNOLOGY INSERTION PROGRAM.....          47,889  ..............          20,000          20,000
    ELECTRONIC COMMERCE RESOURCE CENTERS........          14,972          47,972          14,972          47,972
    HIGH PERFORMANCE COMPUTING MODERNIZATION                                                                    
     PROGRAM....................................         126,211         124,880         151,211         149,880
    COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS.         163,800         163,800         153,800         157,800
    SENSOR AND GUIDANCE TECHNOLOGY..............         166,855         154,855         162,855         169,555
    LAND WARFARE TECHNOLOGY.....................          82,580          89,180          81,980          82,980
    DUAL USE APPLICATIONS PROGRAMS..............         225,000         100,000         125,000         125,000
    JOINT WARGAMING SIMULATION MANAGEMENT OFFICE          71,338          59,968          66,338          64,338
    PHYSICAL SECURITY EQUIPMENT.................          31,553          18,676          31,553          18,676
    JOINT ROBOTICS PROGRAM......................          23,196          23,196          32,196          28,196
    ADVANCED SENSOR APPLICATIONS PROGRAM........          15,379          15,379          18,379          18,379
    CALS INITIATIVE.............................           1,916           5,916           5,916           9,916
    NATO RESEARCH AND DEVELOPMENT...............          13,584  ..............          13,584           8,584
    ENVIRONMENTAL SECURITY TECHNICAL                                                                            
     CERTIFICATION PROGRAM......................          15,164          15,164          20,164          15,164
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--                                                                 
     TMD--DEM/..................................         294,647         238,647         353,427         406,127
    NAVY THEATER WIDE MISSILE DEFENSE--DEM/VAL..         194,898         444,898         274,898         409,898
    BOOST PHASE INTERCEPT THEATER MISSILE                                                                       
     DEFENSE ACQUISIT...........................          12,885  ..............          17,885          16,385
    JOINT THEATER MISSILE DEFENSE--DEM/VAL......         542,619         542,619         612,619         605,419
    ASAT........................................  ..............  ..............          50,000          37,500
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--EMD         120,535         138,535         120,535         130,535
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--                                                                 
     TMD--EMD...................................         261,480         261,480  ..............  ..............
    NAVY AREA THEATER MISSILE DEFENSE--EMD......         267,822         289,822         267,822         289,822
    TECHNICAL STUDIES, SUPPORT AND ANALYSIS.....          38,376          31,248          30,376          30,376
    JOINT THEATER AIR AND MISSILE DEFENSE                                                                       
     ORGANIZATION...............................          23,100          23,100          12,900          16,100
    CLASSIFIED PROGRAM USD(P)...................           5,979           5,979           5,979           9,079
    DEFENSE SUPPORT ACTIVITIES..................           5,992           7,492           8,992           8,992
    MANAGEMENT HEADQUARTERS (RESEARCH AND                                                                       
     DEVELOPMENT)...............................          39,193          34,469          39,193          36,193
    INFORMATION SYSTEMS SECURITY PROGRAM........         258,593         258,593         258,593         253,593
    DEFENSE IMAGERY AND MAPPING PROGRAM.........         109,430         134,430         109,430         119,430
    DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES                                                                   
     (SPACE)....................................          49,403          41,003          57,403          52,503
    TACTICAL UAVS...............................         122,004          60,007          34,507          54,507
    ENDURANCE UAVS..............................         216,712         192,812         216,712         192,722
    AIRBORNE RECONNAISSANCE SYSTEMS.............         212,961         193,961         201,790         196,961
    MANNED RECONNAISSANCE SYSTEMS...............          27,784          51,784          27,784          27,784
    DARP MANAGEMENT SUPPORT.....................          21,543           7,543          21,543           7,543
    COUNTERDRUG INTELLIGENCE SUPPORT............  ..............           2,500  ..............  ..............
    MANAGEMENT HEADQUARTERS (AUXILIARY FORCES)..           1,926           1,926           7,626           1,926
    PARTNERSHIP FOR PEACE ACTIVITIES............           1,993           1,993  ..............  ..............
    SPECIAL OPERATIONS ADVANCED TECHNOLOGY                                                                      
     DEVELOPMENT................................           8,009           9,009           8,009           9,009
    SPECIAL OPERATIONS TACTICAL SYSTEMS                                                                         
     DEVELOPMENT................................          73,073          73,073          75,773         109,473
    SPECIAL OPERATIONS INTELLIGENCE SYSTEMS                                                                     
     DEVELOPMENT................................           4,914          13,914           8,914          10,914
    SOF OPERATIONAL ENHANCEMENTS................          26,357          32,937          17,757          23,937
    CERP........................................  ..............          12,000  ..............          10,000
    CLASSIFIED PROGRAM..........................         995,689       1,054,970       1,036,689       1,068,589
    ECONOMIC ASSUMPTIONS........................  ..............  ..............         -49,000         -49,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                       Budget          House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
University Research Initiatives...................       237,788        215,212         251,788         230,788 
    DEPSCOR.......................................  ............        +10,000         +10,000         +10,000 
    Program reduction.............................  ............        -32,576   ..............        -20,000 
    Southern Observatory for Astronomical Research  ............  ..............         +4,000          +3,000 
    CARE..........................................  ............         (3,000)  ..............         (3,000)
Chemical and Biological Defense Program...........        25,190         28,690          25,190          27,190 
    Non-antibiotic therapies......................  ............         +1,500   ..............  ..............
    Novel agent research..........................  ............         +2,000   ..............         +2,000 
Support Technologies--Applied Research............       101,932        141,932         115,932         113,932 
    AIT...........................................  ............        +30,000   ..............  ..............
    Wide bandgap electronics......................  ............        +10,000         +14,000         +12,000 
Computing Systems and Communications Technology...       341,752        325,057         344,252         327,557 
    Program reduction.............................  ............        -16,695   ..............        -16,695 
    Reuse Technology Adoption Program (RTAP)......  ............         (7,500)         +2,500          +2,500 
Chemical and Biological Defense Program...........        60,023         75,323          66,023         +73,023 
    Medical Biological Research...................  ............         +9,500   ..............  ..............
    SAFEGUARD.....................................  ............         +5,800          +6,000          +3,000 
    Joint Service Chem/Bio Point Detection Sensor.  ............  ..............         (1,500)         (1,500)
    Chemical agent sensor technology..............  ............  ..............  ..............        +10,000 
Tactical Technology...............................       157,329        126,244         158,329         151,329 
    Simulation based design (Gulf Coast Region                                                                  
     Maritime Ctr)................................  ............         +3,000   ..............         +3,000 
    Program reduction.............................  ............        -34,085   ..............        -10,000 
    Compact lasers................................  ............  ..............         -3,000          -3,000 
    Chemically specific detection.................  ............  ..............         -3,000          -3,000 
    Center of Excellence for Researching in Ocean                                                               
     Sciences.....................................  ............  ..............         +7,000          +7,000 
    Facial recognition technology.................  ............  ..............         (3,000)         (3,000)
Integrated Command and Control Technology.........        37,000         39,000          55,000          49,000 
    High definition camera........................  ............         +2,000   ..............  ..............
    High definition display systems...............  ............         (4,000)  ..............         (4,000)
    Flat Panel Display............................  ............  ..............        +18,000         +12,000 
    High-definition optoelectric digital camera...  ............  ..............         (2,000)         (2,000)
Materials and Electronics Technology..............       192,192        208,192         224,692         237,692 
    Defense Microelectronics Activity.............  ............        +10,000   ..............        +10,000 
    Nanofabrication Laboratory....................  ............         +6,000   ..............         +6,000 
    Seamless high-off chip connectivity...........  ............  ..............         +7,500          +6,000 
    Hard carbon based coatings....................  ............  ..............         +1,000          +1,000 
    Multitechnology integration in mixed mode                                                                   
     electronics..................................  ............  ..............         +9,000          +7,500 
    Life support trauma and transport.............  ............  ..............         +4,000          +4,000 
    3-D multi-chip module electronics.............  ............  ..............         +5,000          +5,000 
    Cryogenic electronics.........................  ............  ..............         +6,000          +6,000 
Defense Special Weapons Agency....................       211,971        200,593         226,971         212,593 
    Bioenvironmental research.....................  ............         +5,000   ..............         +5,000 
    Program reduction.............................  ............        -16,378   ..............        -16,378 
    Nuclear weapons effects core competencies.....  ............  ..............        +15,000         +12,000 
Explosive Demilitarization........................        12,259         12,259          12,259          12,259 
    Cryogenic washout program.....................  ............         (2,000)  ..............         (2,000)
Demining..........................................         7,663          7,663          18,063          16,663 
    Humanitarian demining technologies............  ............  ..............        +10,400          +9,000 
    Mechanical clearance support..................  ............  ..............         (1,000)         (1,000)
    Remote area disassembly vehicle...............  ............  ..............         (3,000)         (2,000)
Counterterror Technical Support...................        34,863         34,863          40,863          40,863 
    PFNA..........................................  ............  ..............         +3,000          +3,000 
    Antibiological device (ABD)...................  ............  ..............         +3,000          +3,000 
Counterproliferation Support......................        58,264         67,264          61,264          68,264 
    Counterproliferation Analysis and Planning                                                                  
     Systems (CAPS)...............................  ............         +9,000   ..............         +7,000 
    HAARP.........................................  ............  ..............         +3,000          +3,000 
Support Technologies--Advanced Technology                                                                       
 Development......................................       147,557        147,557         341,957         311,557 
    Advanced intercept technology.................  ............  ..............        +40,000         +30,000 
    Space-based laser.............................  ............  ..............       +118,000         +98,000 
    Midcourse space experiment....................  ............  ..............         +6,400          +5,000 
    APEX Program..................................  ............  ..............        +10,000          +8,000 
    Russian-American observational satellites                                                                   
     (RAMOS)......................................  ............  ..............        +15,000         +13,000 
    Photo conduction on active pixel sensor                                                                     
     technology...................................  ............  ..............         +5,000          +5,000 
    Scorpius......................................  ............  ..............        +10,000          +5,000 
Automatic Target Recognition......................         4,789          5,989           4,789           6,789 
    Optical correlators...........................  ............         +1,200   ..............  ..............
    Hyperspectral IPT.............................  ............  ..............  ..............         +2,000 
Chemical and Biological Defense Program...........        41,223         50,773          41,223          41,223 
    Medical biological programs...................  ............         +6,700   ..............  ..............
    Joint Service Integrated Suit (JSLIST)........  ............         +2,850   ..............  ..............
Special Technical Support.........................        11,750          9,750          14,750         +11,750 
    Program reduction.............................  ............         -2,000   ..............         -2,000 
    Evaluate maritime combatant craft.............  ............  ..............         +3,000          +2,000 
Verification Technology...........................        83,370         69,070          73,370          84,370 
    Industry-based program to accelerate nuclear                                                                
     detection....................................  ............         +5,000   ..............         +5,000 
    Enhanced segregated-surface solid state                                                                     
     detectors....................................  ............         +3,000   ..............         +3,000 
    Russian monitoring technologies...............  ............         +3,000   ..............         +3,000 
    Program reduction.............................  ............        -25,300   ..............        -10,000 
    Nuclear monitoring technologies (explosion                                                                  
     seismology)..................................  ............         (7,100)  ..............         (7,100)
    Hydroacoustics................................  ............           (700)  ..............           (700)
    Program reduction.............................  ............  ..............        -10,000   ..............
    Caribbean radiation early warning system                                                                    
     (CREWS)......................................  ............  ..............         (3,000)  ..............
Strategic Environmental Research Program..........        54,874         61,874          57,874          61,874 
    Environmental clean-up workers health and                                                                   
     safety program...............................  ............         +2,000   ..............         +2,000 
    Risk-based toxic chemicals research...........  ............         +2,000   ..............         +2,000 
    Green energetics..............................  ............         +3,000          +3,000          +3,000 
Advanced Electronics Technologies.................       277,044        285,044         295,044         299,044 
    Center for Advanced Microstructures Devices                                                                 
     (CAMD).......................................  ............         +3,000   ..............  ..............
    Cryoelectronics...............................  ............         +5,000   ..............  ..............
    Flat Panel Displays...........................  ............        (18,000)  ..............  ..............
    Lithographic & Alternative Semiconductor                                                                    
     Processing (LAST)............................  ............  ..............        +23,000         +18,000 
    Point Source x-ray lithography................  ............  ..............         +3,000          +3,000 
    MT-06 program reduction.......................  ............  ..............         -3,000   ..............
    Defense Techlink rural technology transfer....  ............  ..............         +1,000          +1,000 
    Center for Advanced Microstructures Devices                                                                 
     (CAMD).......................................  ............  ..............         +4,000          +4,000 
    MAFET.........................................  ............  ..............        -10,000          -4,000 
    Institute for Advanced Flexible Manufacturing.  ............  ..............         (4,000)         (4,000)
    Laser plasma x-ray source technology..........  ............  ..............  ..............         (5,000)
High Performance Computing Modernization Program..       126,211        124,880         151,211         149,880 
    Program reduction.............................  ............         -1,331   ..............         -1,331 
    Operation, maintenance, and upgrade of                                                                      
     supercomputers purchased with DoD RDT&E funds  ............  ..............        +25,000         +25,000 
Sensor and Guidance Technology....................       166,855        154,855         162,855         169,555 
    GEOSAR........................................  ............        +13,000   ..............        +10,700 
    GPS Guidance Package..........................  ............         (6,000)  ..............         (6,000)
    Program reduction.............................  ............        -25,000   ..............         -5,000 
    Large Millimeter Wave Telescope...............  ............  ..............         +3,000          +3,000 
    Tactical Radar Program........................  ............  ..............         -7,000          -6,000 
Marine Technology.................................        69,143         21,943          21,943          21,943 
    Arsenal Ship..................................  ............        -47,200         -47,200         -47,200 
    Smart anti-submarine warfare and sonar STAP...  ............         (6,000)  ..............         (4,000)
Land Warfare Technology...........................        82,580         89,180          81,980          82,980 
    Active structural control.....................  ............         +6,600          +4,400          +5,400 
    Small unit operations.........................  ............  ..............         -5,000          -5,000 
CALS Initiative...................................         1,916          5,916           5,916           9,916 
    Integrated Data Environment (IDE).............  ............         +4,000          +4,000          +4,000 
    RAMP..........................................  ............  ..............  ..............         +4,000 
Joint Theater Missile Defense--Dem/Val............       542,619        542,619         612,619         605,419 
    Extended air defense testbed..................  ............  ..............         +9,600          +7,800 
    Advanced Research Center (ARC)................  ............  ..............         +7,000          +7,000 
    ARROW.........................................  ............  ..............        +15,000         +12,000 
    Kauai test facility...........................  ............  ..............         +5,000          +5,000 
    Upgrades for theater missile defense (PMRF)...  ............  ..............        +33,400         +31,000 
Chemical and Biological Defense Program--EMD......       120,535        138,535         120,535         130,535 
    Joint vaccine program.........................  ............         +8,000   ..............         +5,000 
    Decontamination technology....................  ............        +10,000   ..............         +5,000 
Defense Imagery and Mapping Program...............       109,430        134,430         109,430         119,430 
    SAR imagery...................................  ............        +25,000   ..............         +5,000 
    USIGS Improv..................................  ............  ..............  ..............         +5,000 
Defense Reconnaissance Support Activities (Space).        49,403         41,003          57,403          52,503 
    Program reduction.............................  ............         -8,400   ..............         -4,900 
    Pacific Disaster Center.......................  ............  ..............         +8,000          +8,000 
Tactical UAVS.....................................       122,004         60,007          34,507          54,507 
    Outrider......................................  ............        -87,497         -87,497         -87,497 
    TCS for the Predator..........................  ............        +11,500   ..............         +8,000 
    MSAG..........................................  ............         +4,000   ..............         +4,000 
    Vertical takeoff and landing..................  ............        +10,000   ..............         +8,000 
Endurance UAVS....................................       216,712        192,812         216,712         192,722 
    Predator transfer.............................  ............        -14,900   ..............        -14,900 
    HAE Ground Support............................  ............         -9,000   ..............         -9,000 
Airborne Reconnaissance Systems...................       212,961        193,961         201,790         196,961 
    JMTE Advanced Technology......................  ............         +8,000   ..............  ..............
    E-O Framing technology........................  ............        +15,000   ..............         +7,000 
    ABIT System Test and Evaluation...............  ............         +3,000   ..............         +1,000 
    JASA Standards................................  ............         -3,000   ..............         -3,000 
    HFE Development...............................  ............         -3,000   ..............         -3,000 
    Global Hawk SIGINT............................  ............        -16,200         -16,200         -16,200 
    JSAF high band subsystem......................  ............        -25,800          +5,000          -1,800 
    High Data Rate Lasercom Sys...................  ............         +3,000   ..............  ..............
Special Operations Tactical Systems Development...        73,073         73,073          75,773         109,473 
    Remote act munitions..........................  ............  ..............         +1,000   ..............
    Helmet........................................  ............  ..............         +1,700   ..............
    Advanced Seal Delivery System.................  ............  ..............  ..............        +36,400 
Special Operations Intelligence Systems                                                                         
 Development......................................         4,914         13,914           8,914          10,914 
    Enhancements for Special Ops Intelligence                                                                   
     Vehicle......................................  ............         +5,000   ..............         +3,000 
    Joint Threat Warning System (JTWS)............  ............         +4,000          +4,000          +3,000 
SOF Operational Enhancements......................        26,357         32,937          17,757          23,937 
    Special Tech Assault Craft....................  ............         +5,800   ..............         +5,800 
    Classified....................................  ............           +780   ..............           +780 
    .50 calibre ball ammo.........................  ............  ..............           +400   ..............
    Program reduction.............................  ............  ..............         -9,000          -9,000 
----------------------------------------------------------------------------------------------------------------

                    missile feasibility assessments

      The conferees note the past success achieved by the 
Countermeasures Hands-On Program (CHOP) and Hands-On Threat 
Demonstration (HTD) programs in assessing the feasibility of 
countermeasures to ballistic missile defense programs and 
cruise missile threats to the United States. The conferees 
believe a similar program to assess the feasibility of the 
development of long-range ballistic missile capabilities by 
rogue or other states will be useful in assessing potential 
missile threats to the United States. Accordingly, the 
conferees provide $2,400,000 to the CHOP program from the 
amount provided for National Missile Defense for the initiation 
of an effort to demonstrate the feasibility of building and 
testing a long-range ballistic missile using open source 
literature and materials likely to be available to potential 
rogue nations. The effort shall be conducted using the same 
approach employed by the CHOP and HTD programs.
      Furthermore, of the amount provided for National Missile 
Defense Demonstration and Validation (Program Element 
0603871C), not less than $150,000 shall be provided to the HTD 
Program for completion of cruise missile flight testing.

             electronic commerce resource centers (ecrc's)

      The conferees direct that the establishment of additional 
ECRC sites shall be based on a Department of Defense analysis 
of regional needs, with priority given to States not currently 
having such a facility already established.

                       ecrc performance measures

      The conferees believe that significant cost saving 
benefits will be derived from the government adopting and using 
electronic commerce (EC) and electronic data interchange (EDI) 
in its business functions. The conferees view Electronic 
Commerce Resource Centers as a key element in advancing the 
Department's process of transferring its business process from 
a paper to electronic medium, especially as this process is 
implemented with small and medium size businesses. The 
conferees are aware that it has proven difficult to assess how 
effective the ECRC concept has been given the many variables 
that affect the pace and efficiency at which DoD and the rest 
of the federal government convert from paper-based management 
functions to EC/EDI. Nevertheless, the conferees believe better 
program performance measures must be established for the ECRC 
program to help implement a policy of making the ECRC's 
essentially self-sustaining over a five-year period, to measure 
their comparative value to DoD, and to evaluate methods to 
improve EC outreach, education and training, and technical 
support to both government and industry. The Department is 
directed to work with the ECRC integrators to develop a set of 
performance indicators (metrics) for the ECRCs that (1) focus 
on their ability to become self-sustaining, (2) prove their 
value in the market place, (3) encourage them to support and 
aid the government effort to develop FACENET or other forms of 
electronic commerce, (4) measure their value to DoD relative to 
one another, (5) keep their operating costs low, (6) track the 
number of instances in which a customer adopts or expands use 
of EC/EDI, and (7) measure customer satisfaction.

                          atmospheric research

      The conferees understand that the Ballistic Missile 
Defense Organization has expressed interest in the development 
of a pan-oceanic environmental and atmospheric research 
laboratory. The conferees would encourage the Defense 
Department to allocate funding within BMDO to initiate this 
program during fiscal year 1998. The conferees expect to 
address additional funding for this program in fiscal year 
1999.

                  materials and electronics technology

      The conferees have provided $5,000,000 to be used only 
for 3-D multi-chip module (MCM) electronics. Thee funds will be 
used to develop and demonstrate key technologies behind a 
packaging concept that uses a stacked MCM approach to reduce 
interconnect length and increase physical connectivity between 
layers of electronics.

                       support technologies--bmdo

      The conferees direct that the $13,000,000 provided for 
the Russian-American Observational Satellites (RAMOS) program 
shall be available only for the RAMOS program.

                          vtol uav technology

      The conferees agree to provide $8,000,000 to continue the 
development of a Vertical Takeoff and Landing (VTOL) unmanned 
aerial vehicle (UAV) and to initiate a demonstration program of 
future VTOL UAV technology, which should include demonstrating 
a stopped rotor, high speed, and reaction driven concept. The 
development and acquisition strategy for this demonstration 
program should be coordinated with the Navy Science and 
Technology Requirements Office.

                             endurance UAVS

      The conferees agree to a $9,000,000 reduction for HAE 
support. This reduction shall not be applied against the 
development and testing for the two HAE common ground segments.

             university affiliated research centers (UARCS)

      The conferees believe that a UARC should be defined as a 
university receiving more than $10,000,000 in sole source non-
competitive contracts.

                     institute for defense analyses

      The conferees do not agree to place restrictions on funds 
for the Institute for Defense Analyses proposed by the House, 
since the Defense Department has recently indicated its 
willingness to provide classified tactical aircraft IDA studies 
to the Appropriations Committees.

               Developmental Test and Evaluation, Defense

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DEVELOPMENTAL TEST & EVAL. DEFENSE:                                                                             
    CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT (CT..      131,353      131,353      116,353      123,353
    ECONOMIC ASSUMPTIONS....................................  ...........  ...........       -2,000       -2,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DEVELOPMENTAL TEST AND EVALUATION, DEFENSE:                                                                     
    CENTRAL TEST AND EVALUATION INVESTMENT..................      131,353      131,353      116,353      123,353
        PROGRAM REDUCTION...................................  ...........  ...........      -15,000       -8,000
        ECONOMIC ASSUMPTIONS................................  ...........  ...........       -2,000       -2,000
----------------------------------------------------------------------------------------------------------------

                    national assessment group (nag)

      The conferees recognize the critical requirement for this 
activity and its mission as outlined in its charter, and direct 
that, at the beginning of fiscal year 1998, $4,654,973 in 
Defense, Test and Evaluation Program Element 0605804D be 
transferred to Assessment and Evaluation Program Element 
0604942D. This transfer is required to establish the National 
Assessment Group as a fully operational and autonomous 
organization. It is directed that outyear funding for NAG be 
included in PE 0604942D.

                Operational Test and Evaluation, Defense

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
OPERATIONAL TEST & EVALUATION, DEFENSE:                                                                         
    OPERATIONAL TEST AND EVALUATION.........................       13,187       13,187       21,187       17,187
    LIVE FIRE TESTING.......................................       10,197       19,497       10,197       14,197
----------------------------------------------------------------------------------------------------------------


                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Operational Test and Evaluation.............................       13,187       13,187       21,187       17,187
    Operational field testing...............................  ...........  ...........       +8,000       +4,000
Live fire testing...........................................       10,197       19,497       10,197       14,197
    Simulation and modeling.................................  ...........       +9,300  ...........       +4,000
----------------------------------------------------------------------------------------------------------------

                    operational test and evaluation

      The conferees agree to provide $4,000,000 for operational 
field assessments. However, the conferees are concerned about 
the widely differing views within the Department of Defense on 
this issue. To clarify this situation, the conferees direct the 
Joint Staff Director for Force Structure, Resources and 
Assessment (J-8) to conduct a thorough review of all aspects of 
operational field assessments. The review should assess past 
and current efforts, potential duplication of existing 
assessment capabilities, users of the assessment program, and 
the roles of possible participants, to include OT&E, the 
Services, NRO, DIA, and others as appropriate.
      The report is to be provided to the Committees on 
Appropriations by March 30, 1998. The conferees direct that the 
funds provided for operational field assessments shall not be 
obligated until the required report is provided to Congress.

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

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

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Working Capital Funds...................          33,400         971,952         871,952         971,952
Military Commissary Fund, Defense...............         938,552  ..............  ..............  ..............
National Defense Sealift Fund...................       1,191,426       1,199,926         516,126       1,074,948
                                                 ---------------------------------------------------------------
      Total, Revolving and Management Funds.....       2,163,378       2,171,878       1,388,078       2,046,900
----------------------------------------------------------------------------------------------------------------

                     Defense Working Capital Funds

      The conferees agree to provide $971,952,000 for the 
Defense Working Capital Fund. The conferees agree to merge 
funding for operations of the Defense Commissary Agency into 
the Defense working capital fund rather than including such 
funding in a separate account.

                     National Defense Sealift Fund

      The conferees agree to provide $1,074,948,000. This 
includes reductions of $131,000,000 for cost adjustments on 
previous LMSR conversion ships which can be deferred until 
fiscal year 1999 and $478,000 of excess advance procurement 
funds for new LMSR construction. The agreement also includes 
$15,000,000 only for procurement of lighterage.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Health..................................      10,301,650      10,309,750      10,317,675      10,369,075
Chemical Agents and Munitions Destruction,                                                                      
 Defense........................................         620,700         595,700         609,700         600,700
Drug Interdiction and Counter-Drug Activities,                                                                  
 Defense........................................         652,582         713,082         691,482         712,882
Office of the Inspector General.................         138,380         142,980         135,380         138,380
                                                 ---------------------------------------------------------------
      Total, Other Department of Defense                                                                        
       Programs.................................      11,713,312      11,761,512      11,754,237      11,821,037
----------------------------------------------------------------------------------------------------------------

                         defense health program

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Medical Programs, O&M.......................................  ...........       +8,100      +16,025      +67,425
Breast Cancer (military programs)...........................  ...........      +25,000  ...........      +25,000
Head Injury.................................................  ...........       +1,000  ...........       +1,000
Air Force Neuroscience......................................  ...........       +4,900  ...........       +4,900
Diabetes Research...........................................  ...........       +4,000  ...........       +4,000
Epidermolysis Bullosa.......................................  ...........       +1,000  ...........       +1,000
Medical Imaging.............................................  ...........       +4,700  ...........       +3,500
Tissue Engineering..........................................  ...........       +4,700  ...........       +3,500
HIV.........................................................  ...........      +15,000  ...........      +15,000
Minimally Invasive Research.................................  ...........      +13,000  ...........      +13,000
Lab Upgrades................................................  ...........       +8,000  ...........       +8,000
Nervous System Studies......................................  ...........       +4,500  ...........       +4,500
Gulf War Illness............................................  ...........       +4,500  ...........       +4,500
PACMEDNET...................................................  ...........       +1,000  ...........      +10,000
High risk automation systems................................  ...........      -20,000  ...........      -20,000
HPSP Tax Liability..........................................  ...........      -70,800      -70,800      -70,800
Economic Adjustment.........................................  ...........       -1,400  ...........  ...........
Hepatitis A Vaccine.........................................  ...........  ...........      +25,000      +17,000
Military Health Information Services........................  ...........  ...........      +10,000       +7,000
USUHS.......................................................  ...........  ...........      +13,000      +13,000
Pacific Island Health Care Program..........................  ...........  ...........       +5,000       +5,000
Brown Tree Snakes...........................................  ...........  ...........       +1,000       +1,000
Cancer Control Program......................................  ...........  ...........       +8,925       +8,925
Army Research Institute.....................................  ...........  ...........       +5,400       +5,400
Committee Increase..........................................  ...........  ...........       +1,500  ...........
Military Nursing Research...................................  ...........  ...........       +5,000       +5,000
Disaster Management Training................................  ...........  ...........       +5,000       +5,000
Holloman Air Force Base.....................................  ...........  ...........       +7,000       +5,000
Restoration of Army O&M (VAC)...............................  ...........  ...........  ...........       +8,000
Economic Adjustment.........................................  ...........  ...........  ...........      -20,000
----------------------------------------------------------------------------------------------------------------

                             breast cancer

      The conferees have provided a total of $160,000,000 only 
for breast cancer research and related treatment. Of that 
amount $135,000,000 is for the Army's peer-reviewed research 
program. The conferees are very encouraged with the 
administration of this program and with the composition of, and 
strategy developed by the program's peer review panel and 
believe this should be maintained. The remaining $25,000,000 is 
to be used to improve access to care for military members and 
their families.

                              telemedicine

      The conferees agree that pursuant to the GAO report 
``Telemedicine: Federal Strategy is Needed to Guide 
Investments'', DoD Health Affairs should contract with an 
outside organization, which has previously demonstrated the 
ability to assess and plan strategic telehealth initiatives, to 
enumerate current telehealth efforts and recommend coordination 
activities among the tri-services to prevent duplication and 
enhance ``dual use'' telecommunications for health care 
delivery, education and related public sector applications. 
This assessment should also include the worldwide computer-
based patient record as a necessary component of telehealth. 
The resulting report and recommendations shall be provided to 
the congressional defense committees by April 1, 1998.

                    national rehabilitation hospital

      The conferees are pleased with the success of the 
cooperative effort between the Department of the Army and the 
National Rehabilitation Hospital at the Assistive Technology 
Research Center. Through its efforts, individuals with 
disabilities are benefiting from technology advances previously 
limited to the military. The conferees urge that this effort be 
continued.

                      military retiree health care

      The conferees are encouraged by the recent decision to 
implement the Medicare subvention demonstration, to provide 
health care for Medicare-eligible military retirees who are not 
currently covered under TRICARE. The conferees believe a 
properly tailored subvention demonstration, coupled with 
continued assessment of the TRICARE program, is essential to 
develop the data needed to evaluate the success, and adequacy, 
of military managed care programs. The conferees understand the 
Department is focusing its efforts in the first phase of the 
Medicare subvention demonstration on rapid implementation. 
However, this emphasis may not provide a true picture of the 
relative merits of the subvention program, as it may preclude 
analysis of a representative sampling of beneficiary 
populations (such as those in rural areas, or in regions with a 
high density retiree population).
      The conferees believe the Department should rapidly move 
towards a second phase Medicare subvention demonstration, which 
takes into account such factors and will give the Department a 
more diverse sampling of data and one more representative of 
the actual challenges facing the military heath care delivery 
system. The Department is directed to submit a report to the 
congressional defense committees not later than March 1, 1998, 
on its plans for phase one of the Medicare subvention 
demonstration as well as its plans regarding subsequent 
demonstration phases.
      While encouraged by the advent of the subvention effort, 
the conferees note that alternative options, such as providing 
the Federal Employees Health Benefits Plan (FEHBP) to Medicare-
eligible military retirees, exist and could serve to further 
ameliorate the problems caused by TRICARE ``lock-out.'' In 
response to a directive in last year's Defense Appropriations 
Act to assess the FEHBP option, the Department indicated there 
may be some merit in conducting a limited FEHBP demonstration 
program. The conferees believe such an effort, if analyzed in 
conjunction with TRICARE and the Medicare subvention options, 
would provide the Department of Defense, other affected Federal 
agencies, and Congress with a more complete picture of the 
potentially available means for providing health care for the 
over-65 military beneficiary population. Therefore, the 
conferees direct the Secretary of Defense, in consultation with 
the Director of the Office of Personnel Management, to submit a 
legislative proposal for Congressional consideration next year 
to implement a limited FEHBP demonstration program. The program 
plan should cover only Medicare-eligible beneficiaries and 
include cost estimates that are based on current beneficiary 
participation data.

                             dna data bank

      The conferees strongly support Department of Defense 
policies that protect information in its ``DNA Data Bank'' for 
soldiers, as outlined in its April 2, 1996 policy memorandum. 
Because this pool of genetic data is one of the largest in the 
country, the conferees are concerned about the possibility for 
health, life, and disability insurers to use this data for 
inappropriate and discriminator purposes. The conferees direct 
the Department of Defense to continue to promote policies that 
provide the utmost protection of the genetic information in the 
``Armed Forces Repository of Specimen Samples for the 
Identification of Remains.''

           Chemical Agents and Munitions Destruction, Defense

      The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
CHEM AGENTS & MUNITION DESTRUCTION, DEF                                                                         
    CHEM DEMILITARIZATION--O&M.................      472,200      472,200      467,200  ...........      462,200
    CHEM DEMILITARIZATION--PROC................       82,200       67,200       77,200  ...........       72,200
    CHEM DEMILITARIZATION-- RDTE...............       66,300       56,300       70,300  ...........       66,300
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........       -5,000  ...........  ...........
----------------------------------------------------------------------------------------------------------------

         Drug Interdiction and Counter-Drug Activities, Defense

      The conference agreement is as follows:

                                            [In thousand of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Dismantling Cartels.........................................       54,306  ...........  ...........       54,306
Source Nation Support.......................................      166,763  ...........  ...........      174,963
    National Imagery & Mapping Agency.......................        8,374        7,574        8,374        7,574
    LEA Support (1004)......................................        3,585       18,585        3,585        3,585
    Riverine Interdiction Initiative........................  ...........  ...........        4,200        9,000
Detection and Monitoring....................................      124,686  ...........  ...........      124,686
Law Enforcement Agency Support..............................      223,589  ...........  ...........      275,189
    Gulf States Counterdrug Initiative......................        3,366       16,166       10,066       16,166
    Multi-Jurisdictional Task Force.........................        2,047        6,047        2,047        6,047
    Southwest Border Information System.....................  ...........        5,000  ...........        4,000
    Civil Air Patrol........................................        1,175        3,975        1,175        1,175
    National Interagency Counter-drug Institute.............  ...........        3,000  ...........  ...........
    Southwest Border Fence..................................  ...........        7,000  ...........        4,000
    Optionally Piloted Air Vehicle..........................  ...........        2,500  ...........  ...........
    HIDTA Crack House Demolition............................  ...........        2,300  ...........        2,300
    C-26 Aircraft Photo Reconnaissance Upgrade..............  ...........       11,000  ...........        4,500
    Non-Intrusive Inspection Systems RDT&E..................       16,013       11,413       16,013       16,013
    National Guard..........................................      132,358      132,358      157,358      149,358
    Regional Police Information System......................  ...........  ...........        3,000        3,000
Demand Reduction............................................       83,238  ...........  ...........       83,738
    Young Marines Program...................................          500        1,000          500        1,000
                                                             ---------------------------------------------------
      Total.................................................      652,582      713,082      691,482      712,882
----------------------------------------------------------------------------------------------------------------

                         gulf states initiative

      The conferees agree with the direction contained in House 
report 105-206 and provide $16,166,000 for the Gulf States 
Initiative (GSI). The conferees have funded this program in the 
Drug Interdiction account, but direct that management of this 
program, with the exception of the Regional Counter-drug 
Training Academy, be transferred to the Joint Military 
Intelligence Program (JMIP). The conferees direct the 
Coordinator for Drug Enforcement Policy and Support to provide 
$13,135,000 to the JMIP to manage and operate the GSI in fiscal 
year 1998.

                            civil air patrol

      The conferees agree to provide $2,800,000 above the 
budget request for the Civil Air Patrol, but have provided 
those funds in the Operation and Maintenance Title.

                      hidta crack house demolition

      The conferees agree to provide $2,300,000 as recommended 
by the House for Crack House Demolition and related missions. 
The conferees are concerned about the physical protection of 
National Guard personnel during demolition missions and expect 
the Guard and local law enforcement agencies to arrange for 
protection prior to the execution of these missions. The 
conferees are also concerned about the status of the properties 
to be demolished. The conferees understand that the National 
Guard intends to require legal certification from the lead 
public agency that titles to the structures to be demolished 
are controlled by the public agency, that hazardous materials 
are not present and that the appropriate law enforcement agency 
has certified the sites as drug distribution centers.

                    Office of the Inspector General

      The conferees agree to provide $138,380,000 for the 
Office of the Inspector General. Of this amount, $136,580,000 
shall be for operation and maintenance activities and 
$1,800,000 shall be for procurement.

                      TITLE VII--RELATED AGENCIES

      The conferees agree to the following amounts for Related 
Agencies:

                                            [In Thousands of Dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                Request       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Intelligence Community Management Account...................      122,580      125,580      122,580      121,080
National Security Education Trust Fund......................        2,000        2,000        2,000        2,000
Central Intelligence Agency Retirement and Disability System                                                    
 Fund.......................................................      196,900      196,900      196,900      196,900
Payment to Kaho'olawe Island Conveyance, Remediation, and                                                       
 Environmental Restoration Fund.............................       10,000       10,000       10,000       35,000
----------------------------------------------------------------------------------------------------------------

               intelligence community management account

      Details of the adjustments to this account are addressed 
in the classified annex accompanying this report.

                     TITLE VIII--GENERAL PROVISIONS

      The conference agreement incorporates general provisions 
of the House and Senate versions of the bill which were not 
amended. Those general provisions that were amended in 
conference follow:
      The conferees included a general provision (Section 8005) 
which amends Senate language concerning transfer authority and 
which provides $65,000,000 for termination costs of the Reserve 
Mobilization Income Insurance Program.
      The conferees included a general provision (Section 8008) 
providing multiyear procurement authority for certain programs.
      The conferees included a general provision (Section 8024) 
which amends Senate language earmarking funds for Indian 
Financing Act Incentives and extends eligibility to contractors 
participating in the test program established by Section 854 of 
Public Law 101-89.
      The conferees included a general provision (Section 8034) 
earmarking funds for the Civil Air Patrol.
      The conferees included a general provision (Section 8035) 
governing the activities of defense federally funded research 
and development centers (FFRDCs).
      The conferees included a general provision (Section 8043) 
which amends a Senate provision offsetting funds provided to 
meet flying hour shortfalls. The conference agreement contains 
significant increases over the budget request to meet 
shortfalls in flying hour and spare parts funding, depot 
maintenance, and other readiness requirements of both the 
Active and Reserve components. Section 8043 provides offsets 
for these critical readiness programs through reductions, on a 
pro-rata basis, to each activity funded in titles III and IV of 
the conference agreement.
      The conferees included a new general provision (Section 
8048) which offsets funding provided for National Missile 
Defense (NMD). In title IV, the conference agreement includes 
an additional $474,000,000 over the President's request for 
NMD, responding to a request from the Secretary of Defense 
after significant shortfalls were discovered in programmed 
funding. Section 8048 offsets the additional funds provided in 
the conference agreement for NMD by a like reduction, on a pro-
rata basis, to each activity funded in title IV.
      The conferees included a general provision (Section 8056) 
which amends Senate language regarding the mitigation of 
environmental impact of DoD activities on Indian lands.
      The conferees included a general provision (Section 8061) 
which amends House language concerning the increase or transfer 
of DoD personnel assigned to headquarters activities and field 
operating agencies.
      The conferees included a general provision (Section 8062) 
which amends Senate language authorizing intelligence 
activities.
      The conferees included a general provision (Section 8064) 
which amends House and Senate language recommending 
rescissions.

                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                                                  House            Senate          Conference   
----------------------------------------------------------------------------------------------------------------
                      FISCAL YEAR 1996                                                                          
SHIPBUILDING AND CONVERSION, NAVY:                                                                              
    AFS Ship..............................................       -35,600,000                 0       -35,600,000
                                                           -----------------------------------------------------
      Subtotal............................................       -35,600,000                 0       -35,600,000
                                                           =====================================================
OTHER PROCUREMENT, NAVY:                                                                                        
    SHINCOM...............................................        -3,300,000                 0        -3,300,000
                                                           -----------------------------------------------------
      Subtotal............................................        -3,300,000                 0        -3,300,000
                                                           =====================================================
      Total fiscal year 1996..............................       -38,900,000                 0       -38,900,000
                                                           =====================================================
                      FISCAL YEAR 1997                                                                          
AIRCRAFT PROCUREMENT, ARMY:                                                                                     
    Blackhawk Advance Procurement.........................        -5,000,000                 0        -5,000,000
                                                           -----------------------------------------------------
      Subtotal............................................        -5,000,000                 0        -5,000,000
                                                           =====================================================
PROCUREMENT OF AMMUNITION, ARMY:                                                                                
  Armament Retooling and Manufacturing                                                                          
    Support...............................................        -5,000,000                 0        -5,000,000
                                                           -----------------------------------------------------
      Subtotal............................................        -5,000,000                 0        -5,000,000
                                                           =====================================================
OTHER PROCUREMENT, ARMY:                                                                                        
    Maneuver Control System...............................        -6,000,000                 0        -6,000,000
                                                           -----------------------------------------------------
      Subtotal............................................        -6,000,000                 0        -6,000,000
                                                           =====================================================
AIRCRAFT PROCUREMENT, NAVY:                                                                                     
    F/A-18E/F (Fighter) Hornet (AP-CY)....................       -24,000,000                 0       -24,000,000
                                                           -----------------------------------------------------
      Subtotal............................................       -24,000,000                 0       -24,000,000
                                                           =====================================================
OTHER PROCUREMENT, NAVY:                                                                                        
    SHINCOM...............................................        -2,200,000                 0        -2,200,000
                                                           -----------------------------------------------------
      Subtotal............................................        -2,200,000                 0        -2,200,000
                                                           =====================================================
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY:                                                               
    Armored System Modernization-Adv Development..........                 0                 0        -6,000,000
                                                           -----------------------------------------------------
      Subtotal............................................                 0                 0        -6,000,000
                                                           =====================================================
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY:                                                               
    Classified programs...................................                 0                 0       -40,000,000
                                                           -----------------------------------------------------
      Subtotal............................................                 0                 0       -40,000,000
                                                           =====================================================
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE:                                                          
    Classified programs...................................                 0       -25,000,000       -25,000,000
                                                           -----------------------------------------------------
      Subtotal............................................                 0       -25,000,000       -25,000,000
                                                           =====================================================
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE:                                                       
    Tactical UAV Outrider.................................                 0       -20,000,000       -20,000,000
                                                           -----------------------------------------------------
    Follow-on-TMD Airborne sensors for ballistic missile                                                        
     tracking.............................................                 0        -9,700,000        -4,000,000
                                                           -----------------------------------------------------
      Subtotal............................................                 0       -29,700,000       -24,000,000
                                                           =====================================================
      Total fiscal year 1997..............................       -42,200,000       -54,700,000      -137,200,000
                                                           =====================================================
      Grand total.........................................       -81,000,000       -54,700,000      -176,100,000
----------------------------------------------------------------------------------------------------------------

      The conferees have rescinded a portion of the fiscal year 
1997 funds provided for the Airborne Sensors for Ballistic 
Missile Tracking project. The conferees direct that the first 
priority for the remaining funds shall be to accomplish any 
valid technology transfer to Airborne Laser (ABL) program.
      The conferees included a general provision (Section 8086) 
which amends Senate language making funds available for Reserve 
peacetime support to active duty and civilian activities.
      The conferees included a general provision (Section 8090) 
which amends House language for ship cost adjustments requested 
by the Navy and program adjustments for the F-22. It also 
includes transfer of funds formerly for prior year ship 
construction projects to the RDT&E appropriation. The conferees 
direct that $9,500,000 within the Research, Development, Test 
and Evaluation, Navy appropriation be used only in the Advanced 
Transition Technology program for the integration of advanced 
propulsion technology within a composite structure and mission 
capable communications to be used for multi-mission patrol 
craft.
      The conferees included a new general provision (Section 
8097) to provide funding for the refurbishment of the USS 
Intrepid.
      The conferees included a general provision (Section 8105) 
which amends House language reducing funding provided to the 
Operation and Maintenance accounts of the Army, Navy, and Air 
Force to compensate for excess inventory.
      The conferees included a general provision (Section 8106) 
which amends House language concerning savings from changes to 
law proposed by the House National Security Committee and the 
Senate Armed Services Committees on warranties in contracts for 
the acquisition of defense weapon systems. The conferees agree 
to a reduction of $75,000,000 rather than $50,000,000 as 
proposed by the House.
      The conferees included a general provision (Section 8109) 
which amends Senate language concerning a pilot project within 
the Maritime Technology Program to make technical corrections.
      The conferees included a general provision (Section 8114) 
which amends House language restricting the use of Research and 
Development funding for the procurement of end-items.
      The conferees included a general provision (Section 8117) 
which prohibits the Department from entering into or renewing a 
contract with an entity unless the contractor has submitted an 
annual report to the Department of Labor concerning the 
employment of veterans. The conferees express their 
understanding that under current regulations, the annual report 
for 1997 must be submitted not later than September 30, 1998.
      The conferees included a general provision (Section 8121) 
which amends Senate language earmarking funds to demonstrate 
expanded use of multi-technology automated reader cards.
      The conferees included a general provision (Section 8122) 
which amends Senate language requiring a report on all 
anticipated costs to the United States for the admission of the 
Czech Republic, Poland and Hungary to NATO.
      The conferees included a general provision (Section 8123) 
which amends Senate language concerning reciprocal trade 
agreements and the conditions under which the Secretary of 
Defense may issue waivers to the Buy America Act.
      The conferees included a new general provision (Section 
8127) which rescinds $100,000,000 from funds appropriated in 
previous Defense Department Appropriations Acts which are 
expected to expire at the end of fiscal year 1998.
      The conferees included a new general provision (Section 
8128) which allows the Secretary of Defense to provide funds 
for operational costs associated with the Lexington Bluegrass 
facility.
      The conferees included a new general provision (Section 
8129) to facilitate contractor teaming for construction of 
submarines. It is required by the Navy in order to implement 
the President's budget request and appropriation in this Act 
for funding for the New Attack Submarine.
      The conferees included a new general provision (Section 
8130) establishing the National Security Strategy Study Group.
      The conferees included a new general provision (Section 
8131) establishing a panel to review the need for continued 
production of the B-2 bomber.
      The conferees included a general provision (Section 8132) 
which amends House language restricting the use of funds for 
the U.S. military deployment in Bosnia after June 30, 1998. The 
amended provision denies the use of funds in the Defense 
Appropriations Act, 1998, for the deployment of U.S. armed 
forces in the Republic of Bosnia and Herzegovina after June 30, 
1998, unless the President, after consultation with the 
bipartisan leadership of the Senate and House of 
Representatives, transmits to the Congress not later than May 
15, 1998 a certification that the continued presence of United 
States armed forces is required in order to meet the national 
security interests of the United States. Any such certification 
shall specify the following aspects of any deployment beyond 
June 30, 1998:
            (1) The reasons why such deployment is in the 
        national interest;
            (2) The number of United States military personnel 
        to be deployed in and around the Republic of Bosnia and 
        Herzegovina and the former Yugoslavia;
            (3) The expected duration of any such deployment;
            (4) The mission and objectives of United States 
        military forces deployed in and around the Republic of 
        Bosnia and Herzegovina and the former Yugoslavia; and
            (5) The exit strategy for United States forces 
        engaged in such deployment;
            (6) The costs associated with any deployment beyond 
        June 30, 1998; and
            (7) The impact of such deployment on the morale, 
        retention, and effectiveness of U.S. forces:
      Pursuant to Section 8132, concurrent with the submission 
of any such certification, the President shall submit to the 
Congress a fiscal year 1998 supplemental appropriations request 
for such amounts as are necessary for any continued deployment 
beyond June 30, 1998.

                   Conference Total--With Comparisons

      The total new budget (obligational) authority for the 
fiscal year 1998 recommended by the Committee of Conference, 
with comparisons to the fiscal year 1997 amount, the 1998 
budget estimates, and the House and Senate bills for 1998 
follow:
New budget (obligational) authority, fiscal year 1997...$242,389,726,000
Budget estimates of new (obligational) authority, fiscal 
    year 1998........................................... 243,923,541,000
House bill, fiscal year 1998............................ 248,335,303,000
Senate bill, fiscal year 1998........................... 247,184,859,000
Conference agreement, fiscal year 1998.................. 247,708,522,000
Conference agreement compared with:.....................
        New budget (obligational) authority, fiscal year 
          1997..........................................  +5,318,796,000
        Budget estimates of new (obligational) 
          authority, fiscal year 1998...................  +3,784,981,000
        House bill, fiscal year 1998....................    -626,781,000
        Senate bill, fiscal year 1998...................    +523,663,000

                                   Bill Young,
                                   Joseph M. McDade,
                                   Jerry Lewis,
                                   Joe Skeen,
                                   David L. Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Ernest Istook,
                                   Randy ``Duke'' Cunningham,
                                   Bob Livingston,
                                   John P. Murtha,
                                   Norm Dicks,
                                           (Except on amendment dealing 
                                               with the B-2 bomber),
                                   W.G. Bill Hefner,
                                   Martin Olav Sabo,
                                   Julian C. Dixon,
                                   Peter J. Visclosky,
                                 Managers on the Part of the House.

                                   Ted Stevens,
                                   Thad Cochran,
                                   Arlen Specter,
                                   Pete Domenici,
                                   Christopher S. Bond,
                                   Mitch McConnell,
                                   Richard Shelby,
                                   Judd Gregg,
                                   Kay Bailey Hutchison,
                                   Daniel K. Inouye,
                                   Robert Byrd,
                                   Patrick J. Leahy,
                                   Dale Bumpers,
                                   Frank R. Lautenberg,
                                   Byron L. Dorgan,
                                Managers of the Part of the Senate.

                                
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