[House Report 105-340]
[From the U.S. Government Publishing Office]





105th Congress                                                    Report
  1st Session              HOUSE OF REPRESENTATIVES              105-340
                                                       
_______________________________________________________________________



 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998        

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 1119

                                     


                                     

                October 23, 1997.--Ordered to be printed



         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998

105th Congress                                                    Report
1st Session             HOUSE OF REPRESENTATIVES                 105-340
                                                       
_______________________________________________________________________

                                     



                     NATIONAL DEFENSE AUTHORIZATION

                        ACT FOR FISCAL YEAR 1998

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 1119

                                     


                                     

                October 23, 1997.--Ordered to be printed


                            C O N T E N T S

                              ----------                              
                                                                   Page
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE.......   465
    Summary Statement of Conference Action.......................   465
    Summary Table of Authorizations..............................   465
    Congressional Defense Committees.............................   472
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS.................   472
Title I--Procurement.............................................   472
    Funding Explanations.........................................   478
            UH-60 blackhawk......................................   478
            Kiowa warrior........................................   478
            Aircraft survivability equipment modifications.......   478
            Aircraft survivability equipment.....................   478
            Training devices.....................................   478
            Avenger..............................................   482
            Hellfire.............................................   482
            Multiple launch rocket system rocket.................   482
            Multiple launch rocket system launcher...............   482
            Brilliant anti-armor submunition.....................   482
            Bradley base sustainment.............................   486
            Field artillery ammunition support vehicle...........   486
            M109A6 paladin howitzer..............................   486
            Improved recovery vehicle............................   486
            MK-19 grenade launcher...............................   507
            Semitrailers.........................................   518
            High mobility multi-purpose wheeled vehicle..........   518
            Family of heavy tactical vehicles....................   518
            Truck, tractor, line haul, M915/M916.................   518
            Defense satellite communications system..............   519
            Satellite terminals..................................   519
            NAVSTAR global positioning system....................   519
            Army data distribution system........................   519
            Area common user system modernization program........   519
            Information system security program..................   520
            Ground based common sensors..........................   520
            Shortstop............................................   520
            Night vision.........................................   520
            LOGTECH..............................................   521
            Maneuver control system..............................   521
            Automated data processing equipment..................   521
            Railway car, flat, 100 ton...........................   521
            Training devices, nonsystem..........................   521
            Close combat tactical trainers.......................   522
            AV-8B Harrier remanufacture..........................   526
            T-45TS Goshawk.......................................   526
            EA-6 Series..........................................   526
            P-3C anti-surface warfare improvement program........   527
            Power plant changes..................................   527
            Common Avionics Changes..............................   527
            Tactical Tomahawk....................................   531
            Joint Standoff Weapon................................   531
            Penguin missile program..............................   532
            Hellfire II missiles.................................   532
            Close-in weapon system surface mode upgrade..........   532
            Pioneer logistic support.............................   532
            LPD-18...............................................   492
            Oceanographic survey ship............................   492
            AN/WSN-7 inertial navigation system..................   501
            Self-contained breathing apparatus...................   501
            Pollution control equipment..........................   501
            AN/BPS-16 submarine navigation radar.................   501
            Cooperative engagement capability....................   501
            Information Technology-21............................   502
            Sonobuoy procurement.................................   502
            Mobile remote emitter simulator......................   502
            NATO sea sparrow missile system low light level 
              television.........................................   503
            AEGIS support equipment..............................   503
            Light tactical wheeled vehicle replacement...........   507
            Chemical/biological incident response force equipment   507
            F-15E................................................   537
            C-130J...............................................   537
            Predator Unmanned Aerial Vehicle.....................   537
            F-15 Modifications...................................   537
            F-16 modifications...................................   538
            Passenger safety and global air traffic management...   538
            Defense Airborne Reconnaissance Program..............   538
            Theater airborne warning system......................   539
            AGM-130 Powered GBU-15...............................   545
            AGM-65 Maverick......................................   545
            Theater deployable communications....................   550
            Automated document conversion system.................   555
            Advanced SEAL delivery system........................   555
            Night firing scopes..................................   555
            Overview.............................................   555
    Legislative Provisions Adopted...............................   559
        Subtitle A--Authorization of Appropriations..............   559
            Chemical agents and munitions destruction program 
              (sec. 107).........................................   559
            Conduct of the chemical agents and munitions 
              destruction program................................   559
            Chemical stockpile emergency preparedness program 
              (CSEPP)............................................   560
        Subtitle B--Army Programs................................   561
            Army helicopter modernization plan (sec. 111)........   561
            Multiyear procurement authority for specified Army 
              programs (sec. 112)................................   562
            M113 vehicle modifications (sec. 113)................   562
        Subtitle C--Navy Programs................................   562
            New Attack Submarine program (sec. 121)..............   562
            CVN-77 nuclear aircraft carrier program (sec. 122)...   563
            Exclusion from cost limitation for Seawolf submarine 
              program (sec. 123).................................   564
        Subtitle D--Air Force Programs...........................   565
            Authorization for B-2 bomber program (sec. 131)......   565
            ALR radar warning receivers (sec. 132)...............   565
            Analysis of requirements for replacement of engines 
              on military aircraft derived from Boeing 707 
              aircraft (sec. 133)................................   565
        Subtitle E--Other Matters................................   565
            Pilot program on sales of manufactured articles and 
              services of certain army industrial facilities 
              without regard to availability from domestic 
              sources (sec. 141).................................   565
            NATO Joint Surveillance/Target Attack Radar System 
              (sec. 142).........................................   566
    Legislative Provisions Not Adopted...........................   566
            Limitation on obligation of funds for the Seawolf 
              submarine program..................................   566
            Reduction in authorization of appropriations.........   566
            Airborne self-protection jammer......................   566
            Prohibition on use of funds for acquisition or 
              alteration of private drydocks.....................   567
Title II--Research, Development, Test, And Evaluation............   567
    Funding Explanations.........................................   580
            University and industry research centers.............   580
            Combat vehicle and automotive advanced technology....   580
            Plastic cased ammunition.............................   580
            Electronics and electronic devices...................   581
            Bioremediation, education, science, and technology 
              program............................................   581
            Plasma energy pyrolysis system.......................   581
            Radford Environmental Development and Management 
              Program............................................   582
            Military engineering technology......................   582
            Medical Advanced Technology..........................   582
            Combat vehicle and automotive advanced technology....   582
            Information systems technology, superiority, and 
              security...........................................   583
            Missile and rocket advanced technology...............   584
            Landmine warfare and barrier advanced technology.....   584
            Joint service small arms program.....................   584
            Armament enhancement initiative......................   584
            Aviation-advanced development........................   585
            All source analysis system...........................   585
            Light tactical wheeled vehicles......................   585
            Engineer mobility equipment development program......   585
            Automatic test equipment.............................   585
            Tactical Exploitation of National Capabilities.......   585
            Combined arms tactical trainer.......................   586
            Landmine warfare/barrier-engineering development.....   586
            Sense and destroy armament missile-engineering 
              development........................................   586
            Fuel cells...........................................   587
            Combat vehicle improvement program...................   588
            Aircraft modification/product improvement program....   588
            Digitization.........................................   588
            Missile/air defense product improvement program......   589
            Healthcare information protection demonstration......   589
            End item industrial preparedness activities..........   589
            Defense research sciences............................   603
            Marine mammal research program.......................   603
            Power electronic building blocks.....................   603
            Power node control centers...........................   603
            Second source for carbon fibers......................   604
            Titanium processing technology.......................   604
            Arctic climate observations..........................   604
            National Oceanographic Partnership Program...........   604
            Antisubmarine warfare technology.....................   605
            Composite helicopter hangar..........................   605
            Project ``M''........................................   605
            Marine Corps advanced technology demonstration.......   606
            Freeze-dried blood research project..................   606
            Littoral antisubmarine warfare technology 
              demonstration......................................   606
            Beach and surf zone obstacle clearance...............   607
            High frequency surface wave radar....................   607
            Visualization architecture and technology............   607
            Antisubmarine warfare systems development............   607
            CV(X) carrier system development.....................   608
            Advanced submarine systems development...............   608
            Cruiser conversion program design....................   609
            Intercooled recuperated gas turbine engine...........   609
            Automatic target recognition/optical correlation.....   609
            Marine Corps assault vehicles........................   610
            Marine Corps ground combat/support systems...........   610
            Cooperative engagement capability....................   610
            Composite engineered materials.......................   611
            Land attack systems technology.......................   611
            Nonlethal weapons and technologies of mass protection 
              program............................................   612
            CH-60 helicopter development.........................   613
            Parametric airborne dipping sonar....................   613
            P-3 maritime patrol aircraft modernization program...   613
            H-1 upgrades.........................................   613
            Advanced ranging source..............................   614
            High Power Discriminator.............................   614
            Maritime fire support demonstrator/arsenal ship......   614
            Multi-purpose processor..............................   616
            Advanced submarine tactical electronic combat system.   616
            CVN-77 research and development......................   617
            Ship self-defense system.............................   617
            Safety and survivability enhancements................   618
            E-2 eight-blade composite propeller system...........   618
            Battle force tactical trainer........................   618
            Joint tactical combat training system................   619
            Marine Corps communications systems..................   619
            Marine Corps ground combat/supporting arms systems...   620
            Manufacturing technology programs....................   620
            Integrated High Payoff Rocket Propulsion Technology..   631
            Military Spaceplane..................................   631
            Solar thermionics orbital transfer vehicle...........   631
            Joint air-to-surface standoff missile/standoff land 
              attack missile-expanded response...................   632
            Major test and evaluation investment.................   633
            Smart monitoring system..............................   633
            Rocket Systems Launch Program........................   633
            Cruise missile defense...............................   633
            University research initiatives......................   646
            Next generation internet.............................   646
            Chemical and biological defense program..............   646
            Tactical technology..................................   649
            Integrated command and control.......................   649
            Materials and electronics technology.................   649
            Explosives demilitarization technology...............   650
            Counterterror technical support program..............   651
            Domestic emergency response to threats of terrorist 
              use of weapons of mass destruction.................   652
            Counterproliferation support program.................   654
            Ballistic Missile Defense Organization funding.......   655
            Strategic environmental research and development 
              program............................................   660
            Advanced electronics technologies....................   660
            Electronic commerce resource centers.................   661
            Land warfare technologies............................   661
            Defense Reconnaissance Support Activities............   662
            Special operations tactical systems development......   663
            Special operations intelligence systems development..   663
    Items of Special Interest....................................   663
            Army research institute..............................   663
            Aviation advanced technology.........................   664
            BOL expendable dispenser system......................   664
            Department of Defense science and technology program.   664
            High temperature superconductor power applications...   664
            Improving collaboration between the Department of 
              Defense and the Department of Energy laboratories..   665
            Interferometric synthetic aperture radar.............   665
            Naval biodynamics laboratory data bank...............   665
            Strategic systems industrial capabilities............   666
            Telemedicine.........................................   666
    Legislative Provisions Adopted...............................   667
        Subtitle A--Authorization of Appropriations..............   667
            Dual-use technology program (sec. 203)...............   667
        Subtitle B--Program Requirements, Restrictions, and 
          Limitations............................................   667
            Manufacturing technology program (sec. 211)..........   667
            Report on operational field assessments program (sec. 
              212)...............................................   668
            Joint Strike Fighter Program (sec. 213)..............   669
            Kinetic energy tactical anti-satellite technology 
              program (sec. 214).................................   669
            Micro-satellite technology development program (sec. 
              215)...............................................   670
            High altitude endurance unmanned vehicle program 
              (sec. 216).........................................   670
            F-22 aircraft program (sec. 217).....................   670
        Subtitle C--Ballistic Missile Defense Programs...........   671
            National Missile Defense Program (sec. 231)..........   671
            Budgetary treatment of amounts for procurement for 
              ballistic missile defense programs (sec. 232)......   671
            Cooperative Ballistic Missile Defense program (sec. 
              233)...............................................   671
            Annual report on the threat posed to the United 
              States by weapons of mass destruction, ballistic 
              missiles, and cruise missiles (sec. 234)...........   671
            Director of Ballistic Missile Defense Organization 
              (sec. 235).........................................   672
            Repeal of required deployment dates for core theater 
              missile defense programs (sec. 236)................   672
        Subtitle D--Other Matters................................   672
            Restructuring of National Oceanographic Partnership 
              Program Organization (sec. 241)....................   672
            Maintenance and repair of real property at Air Force 
              installations (sec. 242)...........................   672
            Expansion of eligibility for the defense experimental 
              program to stimulate competitive research (sec. 
              243)...............................................   674
            Bioassay testing of veterans exposed to ionizing 
              radiation during military service (sec. 244).......   674
            Sense of Congress regarding Comanche program (sec. 
              245)...............................................   674
    Legislative Provisions Not Adopted...........................   675
            Strategic environmental research and development 
              program............................................   675
            Tactical unmanned aerial vehicles....................   675
            Land Attack Standard Missile.........................   675
            Tactical High Energy Laser program...................   676
            Advanced anti-radiation guided missile program.......   676
            Federally funded research and development centers....   676
            Department of Defense/Veterans Administration 
              cooperative research program.......................   676
            Multitechnology integration in mixed-mode electronics   677
            Facial recognition technology program................   677
            Explosives demilitarization technology...............   677
Title III--Operation and Maintenance.............................   678
    Items of Special Interest....................................   702
            Arms control implementation..........................   702
            National Defense Sealift Fund (NDSF).................   702
            National imagery and mapping agency..................   703
    Legislative Provisions Adopted...............................   704
        Subtitle A--Authorization of Appropriations..............   704
            Fisher House trust funds (sec. 304)..................   704
            Refurbishment of M1A1 Tanks (sec. 306)...............   705
            Operation of prepositioned fleet, National Training 
              Center, Fort Irwin, California (sec. 307)..........   705
            Refurbishment and installation of air search radar 
              (sec. 308).........................................   705
            Contracted training flight services (sec. 309).......   705
            Procurement technical assistance programs (sec. 310).   705
            Operation of Fort Chaffee, Arkansas (sec. 311).......   706
        Subtitle B--Military Readiness Issues....................   706
            Monthly reports on allocation of funds within 
              operation and maintenance budget subactivities 
              (sec. 321).........................................   706
            Expansion of scope of quarterly readiness report 
              (sec. 322).........................................   706
            Semiannual reports on transfers from high-priority 
              readiness appropriations (sec. 323)................   706
            Annual report on aircraft inventory (sec. 324).......   706
            Administrative actions adversely affecting military 
              training or other readiness activities (sec. 325)..   707
            Common measurement of operations and personnel tempo 
              (sec. 326).........................................   707
            Inclusion of Air Force depot maintenance as operation 
              and maintenance budget activity group (sec. 327)...   707
            Prohibition of implementation of tiered readiness 
              system (sec. 328)..................................   707
            Report on military readiness requirements of the 
              Armed Forces (sec. 329)............................   708
            Assessment of cyclical readiness posture of the Armed 
              Forces (sec. 330)..................................   708
            Report on military exercises conducted under certain 
              training exercise programs (sec. 331)..............   709
            Report on overseas deployment (sec. 332).............   709
        Subtitle C--Environmental Provisions.....................   709
            Revision of membership terms for Strategic 
              Environmental Research and Development Program 
              Scientific Advisory Board (sec. 341)...............   709
            Amendment to authority to enter into agreements with 
              other agencies in support of environmental 
              technology certification (sec. 342)................   710
            Modifications of authority to store and dispose of 
              non-defense toxic and hazardous materials (sec. 
              343)...............................................   710
            Annual report on payments and activities in response 
              to fines and penalties assessed under environmental 
              laws (sec. 344)....................................   710
            Annual report on environmental activities of the 
              Department of Defense overseas (sec. 345)..........   711
            Review of existing environmental consequences of the 
              presence of the United States Armed Forces in 
              Bermuda (sec. 346).................................   711
            Sense of Congress on deployment of United States 
              Armed Forces abroad for environmental preservation 
              activities (sec. 347)..............................   711
            Recovery and sharing of costs of environmental 
              restoration at Department of Defense sites (sec. 
              348)...............................................   711
            Partnerships for investment in innovative 
              environmental technologies (sec. 349)..............   712
            Procurement of recycled copier paper (sec. 350)......   713
            Pilot program for the sale of air pollution emission 
              reduction incentives (sec. 351)....................   713
        Subtitle D--Depot-Level Activities.......................   713
            Definition of Depot-Level Maintenance and Repair 
              (sec. 355).........................................   714
            Core Logistics Capabilities of Department of Defense 
              (sec. 356).........................................   714
            Increase in Percentage of Depot-Level Maintenance and 
              Repair that may be Contracted for Performance by 
              Non-Government Personnel (sec. 357)................   715
            Annual Report on Depot-Level Maintenance and Repair 
              (sec. 358).........................................   715
            Requirement for use of Competitive Procedures in 
              Contracting for Performance of Depot-Level 
              Maintenance and Repair Workloads Formerly Performed 
              at Closed or Realigned Military Installations (sec. 
              359)...............................................   715
            Clarification of Prohibition on Management of Depot 
              Employees by Constraints on Personnel Levels (sec. 
              360)...............................................   718
            Centers of Industrial and Technical Excellence (sec. 
              361)...............................................   718
            Extension of Authority for Aviation Depots and Naval 
              Shipyards to Engage in Defense Related Production 
              and Services (sec. 362)............................   719
            Repeal of Conditional Repeal of Certain Depot-Level 
              Maintenance and Repair laws and a Related Reporting 
              Requirement (sec. 363).............................   719
            Personnel Reductions, Army Depots Participating in 
              Army Workload and Performance System (sec. 364)....   719
            Report on Allocation of Core Logistics Activities 
              Among Department of Defense Facilities and Private 
              Sector Facilities (sec. 365).......................   720
            Review of Use of Temporary Duty Assignments for Ship 
              Repair and Maintenance (sec. 366)..................   720
            Sense of Congress Regarding Realignment of 
              Performance of Ground Communication-Electronic 
              Workload (sec. 367)................................   720
        Subtitle E--Commissaries and Nonappropriated Fund........   720
            Merchandise and pricing requirements for commissary 
              stores (sec. 372)..................................   720
            Limitation on noncompetitive procurement of brand-
              name commercial items for resale in commissary 
              stores (sec. 373)..................................   721
            Treatment of revenues derived from commissary store 
              activities (sec. 374)..............................   721
            Maintenance, repair, and renovation of Armed Forces 
              Recreation Center, Europe (sec. 375)...............   721
            Plan for use of public and private partnerships to 
              benefit morale, welfare and recreation activities 
              (sec. 376).........................................   721
    Instrumentalities............................................   722
        Subtitle F--Other Matters................................   722
            Assistance to local educational agencies that benefit 
              dependents of members of the armed forces and 
              Department of Defense civilian employees (sec. 381)   722
            Center for Excellence in Disaster Management and 
              Humanitarian Assistance (sec. 382).................   722
            Applicability of Federal printing requirements to 
              Defense Automated Printing Service (sec. 383)......   722
            Study and notification requirements for conversion of 
              commercial and industrial type functions to 
              contractor performance (sec. 384)..................   722
            Collection and retention of cost information data on 
              contracted out services and functions (sec. 385)...   723
            Financial assistance to support additional duties 
              assigned to Army National Guard (sec. 386).........   723
            Competitive procurement of printing and duplication 
              services (sec. 387)................................   723
            Continuation and expansion of demonstration program 
              to identify overpayments made to vendors (sec. 388)   723
            Standard forms regarding performance work statement 
              and request for proposal for conversion of services 
              and functions at military installations (sec. 389).   724
            Base operations support for military installations on 
              Guam (sec. 390)....................................   724
            Warranty claims recovery pilot program (sec. 391)....   724
            Program to investigate fraud, waste, and abuse within 
              Department of Defense (sec. 392)...................   724
            Multitechnology automated reader card demonstration 
              program (sec. 393).................................   725
            Plan for reduction in overhead costs of inventory 
              control points (sec. 394)..........................   725
            Schedule for implementation of best inventory 
              management practices at Defense Logistic Agency 
              (sec. 395).........................................   725
    Legislative Provisions Not Adopted...........................   726
            Quarterly reports on execution of operation and 
              maintenance appropriations.........................   726
            Exclusion of Certain Large Maintenance and Repair 
              Projects from Percentage Limitation on Contracting 
              for Depot-Level Maintenance........................   726
            Revision of report requirement of Navy program to 
              monitor ecological effects of organotin............   726
            Pilot program to test an alternative technology for 
              eliminating solid and liquid waste emissions during 
              ship operations....................................   727
            Transfer of jurisdiction over exchange, commissary, 
              and morale, welfare and recreation activities to 
              Under sec.retary of Defense Comptroller............   727
            Authorized use of appropriated funds for relocation 
              of Navy Exchange Service Command...................   727
            Prohibition on use of Special Operations Command 
              budget for base operation support..................   728
            Availability of funds for separation pay for defense 
              acquisition personnel..............................   728
            Competitive procurement of finance and accounting 
              services...........................................   728
            Competitive procurement of services to dispose of 
              surplus defense property...........................   728
            Competitive procurement of functions performed by 
              Defense Information Systems Agency.................   729
            Competitive procurement of commercial and industrial 
              type functions by defense agencies.................   729
            Consolidation of procurement technical assistance 
              centers and electronic commerce resource centers...   729
            Risk assessments under the defense environmental 
              restoration program................................   729
            Tagging system for identification of hydrocarbon 
              fuels used by the Department of Defense............   729
            Report on options for the disposal of chemical 
              weapons and agents.................................   730
            Integration of military exchange services............   730
Title IV--Military Personnel Authorizations......................   730
    Legislative Provisions Adopted...............................   730
        Subtitle A--Active Forces................................   730
            End strengths for active forces (sec. 401)...........   730
            Permanent end strength levels to support two major 
              regional contingencies (sec. 402)..................   731
        Subtitle B--Reserve Forces...............................   732
            End strengths for Selected Reserve (sec. 411)........   732
            End strengths for Reserves on active duty in support 
              of the Reserves (sec. 412).........................   733
            End strengths for military technicians (dual status) 
              (sec. 413).........................................   734
        Subtitle C--Authorization of Appropriations..............   735
            Authorization of appropriations for military 
              personnel (sec. 421)...............................   735
    Legislative Provisions Not Adopted...........................   735
            Increase in number of members in certain grades 
              authorized to serve on active duty in support of 
              the reserves.......................................   735
Title V--Military Personnel Policy...............................   736
    Items of Special Interest....................................   736
            Personal Finance Training............................   736
            Sequester of Department of Defense funds as a result 
              of a prohibition against military recruiting on 
              campuses of Connecticut State colleges and 
              universities.......................................   736
    Legislative Provisions Adopted...............................   736
        Subtitle A--Officer Personnel Policy.....................   736
            Limitation on number of general and flag officers who 
              may serve in positions outside their own service 
              (sec. 501).........................................   736
            Exclusion of certain retired officers from limitation 
              on period of recall to active duty (sec. 502)......   737
            Clarification of officers eligible for consideration 
              by promotion boards (sec. 503).....................   737
            Authority to defer mandatory retirement for age of 
              officers serving as chaplains (sec. 504)...........   737
            Increase in number of officers allowed to be frocked 
              to grades of colonel and Navy captain (sec. 505)...   738
            Increased years of commissioned service for mandatory 
              retirement of regular generals and admirals in 
              grades above major general and rear admiral (sec. 
              506)...............................................   738
            Uniform policy for requirement of exemplary conduct 
              by commanding officers and others in authority 
              (sec. 507).........................................   738
            Report on the command selection process for District 
              Engineers of the Army Corps of Engineers (sec. 508)   738
        Subtitle B--Reserve Component Matters....................   739
            Individual Ready Reserve activation authority (sec. 
              511)...............................................   739
            Termination of Mobilization Income Insurance Program 
              (sec. 512).........................................   739
            Correction of inequities in medical and dental care 
              and death and disability benefits for reserve 
              members who incur or aggravate an illness in the 
              line of duty (sec. 513)............................   739
            Authority to permit non-unit assigned officers to be 
              considered by vacancy promotion board to general 
              officer grades (sec. 514)..........................   739
            Prohibition on use of Air Force Reserve AGR personnel 
              for Air Force base security functions (sec. 515)...   739
            Involuntary separation of reserve officers in an 
              inactive status (sec. 516).........................   740
            Federal status of service by National Guard members 
              as honor guards at funerals of veterans (sec. 517).   740
        Subtitle C--Military Technicians.........................   740
            Authority to retain on the reserve active-status list 
              until age 60 military technicians in the grade of 
              brigadier general (sec. 521).......................   740
            Military technicians (dual status) (sec. 522)........   741
            Non-dual status military technicians (sec. 523)......   741
            Report on feasibility and desirability of conversion 
              of AGR personnel to military technicians (dual 
              status) (sec. 524).................................   741
        Subtitle D--Measures To Improve Recruit Quality and 
          Reduce Recruit Attrition...............................   742
            Reform of military recruiting systems (sec. 531).....   742
            Improvements in medical prescreening of applicants 
              for military service (sec. 532)....................   742
            Improvements in physical fitness of recruits (sec. 
              533)...............................................   742
        Subtitle E--Military Education and Training..............   743
        Part I--Officer Education Programs.......................   743
            Requirement for candidates for admission to United 
              States Naval Academy to take oath of allegiance 
              (sec. 541).........................................   743
            Service academy foreign exchange program (sec. 542)..   743
            Reimbursement of expenses incurred for instruction at 
              service academies of persons from foreign countries 
              (sec. 543).........................................   743
            Continuation of support to senior military colleges 
              (sec. 544).........................................   743
            Report on making United States nationals eligible for 
              participation in Senior Reserve Officers' Training 
              Corps (sec. 545)...................................   744
            Coordination of establishment and maintenance of 
              Junior Reserve Officers' Training Corps units to 
              maximize enrollment and enhance efficiency (sec. 
              546)...............................................   744
         Part II--Other Education Matters........................   744
            United States Naval Postgraduate School (sec. 551)...   744
            Community College of the Air Force (sec. 552)........   745
            Preservation of entitlement to educational assistance 
              of members of the Selected Reserve serving on 
              active duty in support of a contingency operation 
              (sec. 553).........................................   745
        Part III--Training of Army Drill Sergeants...............   745
            Reform of Army drill sergeant selection and training 
              process (sec. 556).................................   745
            Training in human relations matters for Army drill 
              sergeant trainees (sec. 557).......................   745
        Subtitle F--Commission on Military Training and Gender-
          Related Issues.........................................   746
        Subtitle G--Military Decorations and Awards..............   746
            Purple Heart to be awarded only to members of the 
              Armed Forces (sec. 571)............................   746
            Eligibility for Armed Forces Expeditionary Medal for 
              participation in Operation Joint Endeavor or 
              Operation Joint Guard (sec. 572)...................   746
            Clarification of eligibility of members of Ready 
              Reserve for award of service medal for heroism 
              (sec. 574).........................................   747
            One-year extension of period for receipt of 
              recommendations for decorations and awards for 
              certain military intelligence personnel (sec. 575).   747
            Eligibility of certain World War II military 
              organizations for award of unit decorations (sec. 
              576)...............................................   747
            Retroactivity of Medal of Honor special pension (sec. 
              577)...............................................   747
        Subtitle H--Military Justice Matters.....................   747
         Subtitle I--Other Matters...............................   748
            Sexual harassment investigations and reports (sec. 
              591)...............................................   748
            Sense of the Senate regarding study of matters 
              relating to gender equity in the Armed Forces (sec. 
              592)...............................................   748
            Authority for personnel to participate in management 
              of certain non-Federal entities (sec. 593).........   748
            Treatment of participation of members in Department 
              of Defense civil military programs (sec. 594)......   748
            Comptroller General study of Department of Defense 
              civil military programs (sec. 595).................   749
            Establishment of public affairs specialty in the Army 
              (sec. 596).........................................   749
            Grade of defense attache in France (sec. 597)........   749
            Report on crew requirements of WC-130J aircraft (sec. 
              598)...............................................   749
            Improvement of missing persons authorities applicable 
              to Department of Defense (sec. 599)................   749
    Legislative Provisions Not Adopted...........................   751
            Time-in-grade requirements for reserve commissioned 
              officers retired during the drawdown period........   751
            Grade requirement for officers eligible to serve on 
              involuntary separation boards......................   751
            Study of new decorations for injury or death in line 
              of duty............................................   751
            Suspension of Temporary Early Retirement Authority...   751
            Treatment of educational accomplishments of National 
              Guard ChalleNGe program participants...............   751
            Repeal of certain staffing and safety requirements 
              for the Army Ranger Training Brigade...............   751
Title VI--Compensation and Other Personnel Benefits..............   752
    Legislative Provisions Adopted...............................   752
        Subtitle A--Pay and Allowances...........................   752
            Increase in basic pay for fiscal year 1998 (sec. 601)   752
            Reform of basic allowance for subsistence (sec. 602).   752
            Consolidation of basic allowance for quarters, 
              variable housing allowance, and overseas housing 
              allowances (sec. 603)..............................   752
            Revision of authority to adjust compensation 
              necessitated by reform of subsistence and housing 
              allowances (sec. 604)..............................   753
            Protection of total compensation of members while 
              performing certain duty (sec. 605).................   753
        Subtitle B--Bonuses and Special and Incentive Pays.......   753
            One-year extension of certain bonuses and special pay 
              authorities for reserve forces (sec. 611)..........   753
            One-year extension of certain bonuses and special pay 
              authorities for nurse officer candidates, 
              registered nurses, and nurse anesthetists (sec. 
              612)...............................................   754
            One-year extension of authorities relating to payment 
              of other bonuses and special pays (sec. 613).......   754
            Increase in minimum monthly rate of hazardous duty 
              incentive pay for certain members (sec. 614).......   755
            Increase in aviation career incentive pay (sec. 615).   755
            Modification of aviation officer retention bonus 
              (sec. 616).........................................   755
            Availability of multiyear retention bonus for dental 
              officers (sec. 617)................................   755
            Increase in variable and additional special pays for 
              certain dental officers (sec. 618).................   755
            Availability of special pay for duty at designated 
              hardship duty locations (sec. 619).................   756
            Definition of sea duty for purposes of career sea pay 
              (sec. 620).........................................   756
            Modification of Selected Reserve reenlistment bonus 
              (sec. 621).........................................   756
            Modification of Selected Reserve enlistment bonus for 
              former enlisted members (sec. 622).................   756
            Expansion of reserve affiliation bonus to include 
              Coast Guard Reserve (sec. 623).....................   757
            Increase in special pay and bonuses for nuclear-
              qualified officers (sec. 624)......................   757
            Provision of bonuses in lieu of special pay for 
              enlisted members extending tours of duty at 
              designated locations overseas (sec. 625)...........   757
            Increase in amount of family separation allowance 
              (sec. 626).........................................   757
            Deadline for payment of Ready Reserve muster duty 
              allowance (sec. 627)...............................   757
        Subtitle C--Travel and Transportation Allowances.........   758
            Travel and transportation allowances for dependents 
              before approval of member's court-martial sentence 
              (sec. 631).........................................   758
            Dislocation allowance (sec. 632).....................   758
        Subtitle D--Retired Pay, Survivor Benefits, and Related 
          Matters................................................   758
            One-year opportunity to discontinue participation in 
              Survivor Benefit Plan (sec. 641)...................   758
            Time in which change in survivor benefit coverage 
              from former spouse to spouse may be made (sec. 642)   758
            Review of Federal former spouse protection laws (sec. 
              643)...............................................   759
            Annuities for certain military surviving spouses 
              (sec. 644).........................................   759
            Administration of benefits for so-called minimum 
              income widows (sec. 645)...........................   759
        Subtitle E--Other Matters................................   759
            Loan repayment program for commissioned officers in 
              certain health professions (sec. 651)..............   759
            Conformance of NOAA commissioned officers separation 
              pay to separation pay for members of other 
              uniformed services (sec. 652)......................   760
            Eligibility of Public Health Service officers and 
              NOAA commissioned corps officers for reimbursement 
              of adoption expenses (sec. 653)....................   760
            Payment of back quarters and subsistence allowances 
              to World War II veterans who served as guerrilla 
              fighters in the Philippines (sec. 654).............   760
            Subsistence of members of the Armed Forces above the 
              poverty level (sec. 655)...........................   760
    Legislative Provisions Not Adopted...........................   761
            Space available travel for members of Selected 
              Reserve............................................   761
            Implementation of Department of Defense Supplemental 
              Food Program for military personnel outside the 
              United States......................................   761
            Paid-up coverage under Survivor Benefit Plan.........   761
Title VII--Health Care Provisions................................   761
    Legislative Provisions Adopted...............................   761
        Subtitle A--Health Care Services.........................   761
            Expansion of retiree dental insurance plan to include 
              surviving spouse and child dependents of certain 
              deceased members (sec. 701)........................   761
            Provision of prosthetic devices to covered 
              beneficiaries (sec. 702)...........................   761
            Study concerning the provision of comparative 
              information (sec. 703).............................   762
        Subtitle B--TRICARE Program..............................   762
            Addition of definition of TRICARE program to title 10 
              (sec. 711).........................................   762
            Plan for expansion of managed care option of TRICARE 
              program (sec. 712).................................   762
        Subtitle C--Uniformed Services Treatment Facilities......   762
            Implementation of designated provider agreements for 
              Uniformed Services Treatment Facilities (sec. 721).   762
            Continued acquisition of reduced-cost drugs (sec. 
              722)...............................................   763
        Subtitle D--Other Changes to Existing Laws Regarding 
          Health Care Management.................................   763
            Improvements in health care coverage and access for 
              members assigned to certain duty locations far from 
              sources of care (sec. 731).........................   763
            Dental insurance plan coverage for retirees of the 
              Public Health Service and NOAA (sec. 734)..........   764
            Consistency between CHAMPUS and Medicare in payment 
              rates for services (sec. 735)......................   764
            Use of personal services contracts for provision of 
              health care services and legal protection for 
              providers (sec. 736)...............................   765
            Standard form and requirements regarding claims for 
              payment for services (sec. 738)....................   765
            Chiropractic health care demonstration program (sec. 
              739)...............................................   766
        Subtitle E--Other Matters................................   766
            Continued admission of civilians as students in 
              physician assistant training program of Army 
              Medical Department (sec. 741)......................   766
            Payment for emergency health care overseas for 
              military and civilian personnel of the On-Site 
              Inspection Agency (sec. 742).......................   766
            Authority for agreement for use of medical resource 
              facility, Alamogordo, New Mexico (sec. 743)........   766
            Disclosures of cautionary information on prescription 
              medications (sec. 744).............................   767
            Competitive procurement of certain ophthalmic 
              services (sec. 745)................................   767
            Comptroller General study of adequacy and effect of 
              maximum allowable charges for physicians under 
              CHAMPUS (sec. 746).................................   767
            Comptroller General study of Department of Defense 
              pharmacy programs (sec. 747).......................   767
            Comptroller General study of Navy graduate medical 
              education program (sec. 748).......................   767
            Study of expansion of pharmaceuticals by mail program 
              to include additional Medicare-eligible covered 
              beneficiaries (sec. 749)...........................   768
            Comptroller General study of requirement for military 
              medical facilities in the National Capital Region 
              (sec. 750).........................................   768
            Report on policies and programs to promote healthy 
              lifestyles for members of the Armed Forces and 
              their dependents (sec. 751)........................   768
            Sense of Congress regarding quality health care for 
              retirees (sec. 752)................................   768
        Subtitle F--Persian Gulf Illness.........................   768
            Plan for health care services for Persian Gulf 
              veterans (sec. 762)................................   768
            Comptroller General study of revised disability 
              criteria for physical evaluation boards (sec. 763).   769
            Medical care for certain reserves who served in 
              Southwest Asia during the Persian Gulf War (sec. 
              764)...............................................   769
            Improved medical tracking system for members deployed 
              overseas in contingency or combat operations (sec. 
              765)...............................................   769
            Notice of use of investigational new drugs or drugs 
              unapproved for their applied use (sec. 766)........   769
            Sense of Congress regarding the deployment of 
              specialized units for detecting and monitoring 
              chemical, biological, and similar hazards in a 
              theater of operations (sec. 768)...................   770
            Sense of Congress concerning Gulf War illness (sec. 
              771)...............................................   770
    Legislative Provisions Not Adopted...........................   770
            Medical personnel conscience clause..................   770
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   771
    Items of Special Interest....................................   771
            Cost accounting standards board......................   771
    Legislative Provisions Adopted...............................   771
        Subtitle A--Amendments to General Contracting 
          Authorities, Procedures, and Limitations...............   771
            Expansion of authority to enter into contracts 
              crossing fiscal years to all severable service 
              contracts not exceeding a year (sec. 801)..........   771
            Vesting of title in the United States under contracts 
              paid under progress payment arrangements or similar 
              arrangements (sec. 802)............................   772
            Restriction on undefinitized contract actions (sec. 
              803)...............................................   772
            Limitation and report on payment of restructuring 
              costs under defense contracts (sec. 804)...........   772
            Multiyear procurement contracts (sec. 806)...........   772
            Audit of procurement of military clothing and 
              clothing-related items by military installations in 
              the United States (sec. 807).......................   773
            Limitation on allowability of compensation for 
              certain contractor personnel (sec. 808)............   773
            Elimination of certification requirement for grants 
              (sec. 809).........................................   773
            Repeal of limitation on adjustment of shipbuilding 
              contracts (sec. 810)...............................   774
            Item-by-item and country-by-country waivers of 
              domestic source limitations (sec. 811).............   774
        Subtitle B--Acquisition Assistance Programs..............   774
            One-year extension of pilot mentor-protege program 
              (sec. 821).........................................   774
            Test program for negotiation of comprehensive 
              subcontracting plans (sec. 822)....................   774
        Subtitle C--Administrative Provisions....................   775
            Retention of expired funds during the pendency of 
              contract litigation (sec. 831).....................   775
            Protection of certain information from disclosure 
              (sec. 832).........................................   775
            Unit cost reports (sec. 833).........................   775
            Plan for providing contracting information to general 
              public and small business (sec. 834)...............   775
            Two-year extension of crediting of certain purchases 
              toward meeting subcontracting goals (sec. 835).....   776
        Subtitle D--Other Matters................................   776
            Repeal of certain acquisition requirements and 
              reports (sec. 841).................................   776
            Use of major range and test facility installations by 
              commercial entities (sec. 842).....................   776
            Requirement to develop and maintain list of firms not 
              eligible for defense contracts (sec. 843)..........   776
            Sense of Congress regarding allowability of costs of 
              employee stock ownership plans (sec. 844)..........   777
            Expansion of personnel eligible to participate in 
              demonstration project relating to acquisition 
              workforce (sec. 845)...............................   777
            Time for submission of annual report relating to Buy 
              American Act (sec. 846)............................   777
            Repeal of requirement for contractor guarantees on 
              major weapon systems (sec. 847)....................   778
            Requirements relating to micro-purchases (sec. 848)..   778
            Promotion rate for officers in an acquisition corps 
              (sec. 849).........................................   778
            Use of electronic commerce in federal procurement 
              (sec. 850).........................................   779
            Conformance of policy on performance based management 
              of civilian acquisition programs with policy 
              established for defense acquisition programs (sec. 
              851)...............................................   779
            Modification of process requirements for the 
              solutions-based contracting pilot program (sec. 
              852)...............................................   779
            Guidance and standards for defense acquisition 
              workforce training requirements (sec. 853).........   779
            Study and report to Congress assessing dependence on 
              foreign sources for resistors and capacitors (sec. 
              854)...............................................   780
            Department of Defense and Federal Prison Industries 
              joint study (sec. 855).............................   780
    Legislative Provisions Not Adopted...........................   780
            Domestic source limitation amendments................   780
            Repeal of expiration of domestic source limitation 
              for certain naval vessel propellers................   780
            Availability of simplified procedures to commercial 
              item procurements..................................   781
            Price preference for small and disadvantaged 
              businesses.........................................   781
Title IX--Department of Defense Organization and Management......   781
    Legislative Provisions Adopted...............................   781
        Subtitle A--Department of Defense Positions and 
          Organizations and Other General Matters................   781
            Senior Representatives of the National Guard Bureau 
              (sec. 901).........................................   781
            Use of CINC Initiative Fund for force protection 
              (sec. 902).........................................   783
            Revision to required frequency for provision of 
              policy guidance for contingency plans (sec. 903)...   783
            Annual justification for Department of Defense 
              advisory committees (sec. 904).....................   783
            Defense Airborne Reconnaissance Office (sec. 905)....   783
            Termination of Armed Services Patent Advisory Board 
              (sec. 906).........................................   785
            Coordination of Department of Defense criminal 
              investigations and audits (sec. 907)...............   785
        Subtitle B--Department of Defense Personnel Management...   786
            Reduction in personnel assigned to management 
              headquarters and headquarters support activities 
              (sec. 911).........................................   786
            Additional reduction in defense acquisition workforce 
              (sec. 912).........................................   786
        Subtitle C--Department of Defense Schools and Centers....   787
            Professional military education schools (sec. 921)...   787
            Center for Hemispheric Defense Studies (sec. 922)....   787
            Correction to reference to George C. Marshall 
              European Center for Security Studies (sec. 923)....   787
        Subtitle D--Department of Defense Intelligence-Related 
          Matters................................................   787
            Transfer of certain military department programs from 
              TIARA budget aggregation (sec. 931)................   787
            Report on coordination of access of commanders and 
              deployed units to intelligence collected and 
              analyzed by the intelligence community (sec. 932)..   788
            Protection of imagery, imagery intelligence, and 
              geospatial information and data (sec. 933).........   788
            POW/MIA intelligence analysis (sec. 934).............   788
    Legislative Provisions Not Adopted...........................   788
            Limitation on operation and support funds for the 
              office of the Secretary of Defense.................   788
            Center for the Study of Chinese Military Affairs.....   789
            White House Communications Agency....................   789
            Personnel reductions in the United States 
              Transportation Command.............................   789
            Commission on Defense Organization and Streamlining..   790
            Principal duty of Assistant Secretary of Defense for 
              Special perations and Low Intensity Conflict.......   790
Title X--General Provisions......................................   790
    Items of Special Interest....................................   790
            Global Positioning System alternate master control 
              station............................................   790
    Legislative Provisions Adopted...............................   791
        Subtitle A--Financial Matters............................   791
            Transfer authority (sec. 1001).......................   791
            Incorporation of classified annex (sec. 1002)........   791
            Authority for obligation of unauthorized fiscal year 
              1997 defense appropriations (sec. 1003)............   791
            Authorization of prior emergency supplemental 
              appropriations for fiscal year 1997 (sec. 1004)....   792
            Increase in fiscal year 1996 transfer authority (sec. 
              1005)..............................................   792
            Revision of authority for Fisher House trust funds 
              (sec. 1006)........................................   792
            Flexibility in financing closure of certain 
              outstanding contracts for which a small final 
              payment is due (sec. 1007).........................   792
            Biennial financial management improvement plan (sec. 
              1008)..............................................   792
            Estimates and requests for procurement and military 
              construction for the reserve components (sec. 1009)   792
            Sense of Congress regarding funding for reserve 
              component modernization not requested in the 
              President's budget (sec. 1010).....................   793
            Management of working-capital funds (sec. 1011.......   793
            Authority of Secretary of Defense to settle claims 
              relating to pay, allowances, and other benefits 
              (sec. 1012)........................................   794
            Payment of claims by members for loss of personnel 
              property due to flooding in Red River Basin (sec. 
              1013)..............................................   794
            Advances for payment of public services (sec. 1014)..   794
            United States Man and the Biosphere Program 
              limitation (sec. 1015).............................   794
        Subtitle B--Naval Vessels and Shipyards..................   795
            Procedures for sale of vessels stricken from the 
              Naval Vessel Register (sec. 1021)..................   795
            Authority to enter into a long-term charter for a 
              vessel in support of the Surveillance Towed-Array 
              Sensor (SURTASS) program (sec. 1022)...............   795
            Transfer of two specified obsolete tugboats of the 
              Army (sec. 1023)...................................   795
            Congressional review period with respect to transfer 
              of the ex-U.S.S Midway (CV-41) and ex.-U.S.S. 
              Hornet (CV-12) (sec. 1024).........................   795
            Transfers of naval vessels to certain foreign 
              countries (sec. 1025)..............................   795
            Reports relating to export of vessels that may 
              contain polychlorinated biphenyls (sec. 1026)......   796
            Conversion of defense capability preservation 
              authority to Navy shipbuilding capability 
              preservation authority (sec. 1027).................   797
        Subtitle C--Counter-Drug Activities......................   797
            Use of National Guard for State drug interdiction and 
              counterdrug activities (sec. 1031).................   799
            Authority to provide additional support for counter-
              drug activities of the government of Mexico (sec. 
              1032)..............................................   799
            Authority to provide additional support for counter-
              drug activities of Peru and Colombia (sec. 1033)...   799
            Annual report on development and deployment of 
              narcotics detection technology (sec. 1034).........   800
        Subtitle D--Miscellaneous Report Requirements and Repeals   800
            Repeal of miscellaneous reporting requirements (sec. 
              1041)..............................................   800
            Study of transfer of Modular Airborne Fire Fighting 
              System (sec. 1042).................................   800
            Overseas infrastructure requirements (sec. 1043).....   800
            Additional matters for annual report on activities of 
              the General Accounting Office (sec. 1044)..........   801
            Eye safety at small arms firing ranges (sec. 1045)...   801
            Reports on Department of Defense procedures for 
              investigating military aviation accidents and for 
              notifying and assisting families of victims (sec. 
              1046)..............................................   801
        Subtitle E--Matters Relating to Terrorism................   802
            Oversight of counterterrorism and antiterrorism 
              programs and activities of the United States (sec. 
              1051)..............................................   802
            Report on policies and practices relating to the 
              protection of members of the armed forces abroad 
              from terrorist attack (sec. 1052)..................   802
        Subtitle F--Matters Relating to Defense Property.........   803
            Lease of nonexcess personal property of the military 
              departments (sec. 1061)............................   803
            Lease of nonexcess property of defense agencies (sec. 
              1062)..............................................   803
            Donation of excess chapel property to churches 
              damaged or destroyed by arson or other acts of 
              terrorism (sec. 1063)..............................   803
            Authority of the Secretary of Defense concerning 
              disposal of assets under cooperative agreements on 
              air defense in Central Europe (sec. 1064)..........   803
            Sale of excess, obsolete, or unserviceable ammunition 
              and ammunition components (sec. 1065)..............   804
            Transfer of B-17 aircraft to museum (sec. 1066)......   805
            Report on disposal of excess and surplus materials 
              (sec. 1067)........................................   805
        Subtitle G--Other Matters................................   805
            Authority for special agents of the Defense Criminal 
              Investigative Service to execute warrants and make 
              arrests (sec. 1071)................................   805
            Study of investigative practices of military criminal 
              investigative organizations relating to sex crimes 
              (sec. 1072)........................................   806
            Technical and clerical amendments (sec. 1073)........   806
            Sustainment and operation of the Global Positioning 
              System (sec. 1074).................................   806
            Protection of safety-related information voluntarily 
              provided by air carriers (sec. 1075)...............   806
            National Guard ChalleNGe Program to create 
              opportunities for civilian youth (sec. 1076).......   806
            Disqualification from certain burial-related benefits 
              for persons convicted of capital crimes (sec. 1077)   807
            Restrictions on the use of human subjects for testing 
              of chemical or biological agents (sec. 1078).......   807
            Treatment of military flight operations (sec. 1079)..   808
            Naturalization of certain foreign nationals who serve 
              honorably in the Armed Forces during a period of 
              conflict (sec. 1080)...............................   808
            Applicability of certain pay authorities to members 
              of specified independent study organizations (sec. 
              1081)..............................................   808
            Display of POW/MIA flag (sec. 1082)..................   809
            Program to commemorate 50th anniversary of the Korean 
              conflict (sec. 1083)...............................   809
            Commendation of members of the Armed Forces and 
              Government civilian personnel who served during the 
              Cold War; certificate of recognition (sec. 1084)...   809
            Sense of Congress on granting of statutory Federal 
              charters (sec. 1085)...............................   809
            Sense of Congress regarding military voting rights 
              (sec. 1086)........................................   810
            Designation of Bob Hope as an honorary veteran of the 
              Armed Forces of the United States (sec. 1087)......   810
            Five-year extension of aviation insurance program 
              (sec. 1088)........................................   811
    Legislative provisions not adopted...........................   811
            Naming of a DDG-51 class destroyer the U.S.S. Thomas 
              F. Connolly........................................   811
            Assignment of Department of Defense personnel to 
              assist immigration and naturalization service and 
              custom service.....................................   811
            Repeal of annual report requirement relating to 
              training of special operations forces with friendly 
              foreign forces.....................................   811
            Armament retooling and manufacturing support 
              initiative.........................................   811
            Long-term charter contracts for acquisition of 
              auxiliary vessels for the Department of Defense....   812
            Availability of certain fiscal year 1991 funds for 
              payment of contract claim..........................   812
            Psychotherapist-patient privilege in the Military 
              Rules of Evidence..................................   812
            Acceptance and use of landing fees for use of 
              overseas military airfields by civil aircraft......   812
            Protection of employees from retaliation for certain 
              disclosures of classified information..............   812
            Criminal prohibition on the distribution of certain 
              information relating to explosives, destructive 
              devices, and weapons of mass destruction...........   813
            Restrictions on quantities of alcoholic beverages 
              available for personnel overseas through Department 
              of Defense sources.................................   813
Title XI--Department of Defense Civilian Personnel...............   814
    Legislative Provisions Adopted...............................   814
            Use of prohibited constraints to manage Department of 
              Defense personnel (sec. 1101)......................   814
            Veterans' preference status for certain veterans who 
              served on active duty during the Persian Gulf War 
              (sec. 1102)........................................   814
            Repeal of deadline for placement consideration of 
              involuntarily separated military reserve 
              technicians (sec. 1103)............................   814
            Rate of pay of Department of Defense overseas 
              teachers upon transfer to General Schedule position 
              (sec. 1104)........................................   814
            Garnishment and involuntary allotment (sec. 1105)....   815
            Extension and revision of voluntary separation 
              incentive pay authority (sec. 1106)................   815
            Use of approved fire-safe accommodations by 
              Government employees on official business (sec. 
              1107)..............................................   815
            Navy higher education pilot program regarding 
              administration of business relationships between 
              Government and private sector (sec. 1108)..........   815
            Authority for Marine Corps University to employ 
              civilian faculty members (sec. 1109)...............   816
Title XII--Matters Relating to Other Nations.....................   816
    Legislative Provisions Adopted...............................   816
        Subtitle A--United States Armed Forces in Bosnia and 
          Herzegovina............................................   816
            Limitation on the use of funds for the deployment of 
              U.S. forces in Bosnia beyond June 30, 1998 (secs. 
              1201-1206).........................................   816
        Subtitle B--Export Controls on High Performance Computers   817
            Export controls on high performance computers (secs. 
              1211-1215).........................................   817
        Subtitle C--Other Matters................................   819
            Temporary use of general purpose vehicles and 
              nonlethal military equipment under acquisition and 
              cross servicing agreements (sec. 1222).............   819
            Sense of Congress and reports regarding financial 
              costs of enlargement of the North Atlantic Treaty 
              Organization (sec. 1223)...........................   819
            Sense of Congress regarding expansion of the North 
              Atlantic Treaty Organization (sec. 1224)...........   819
            Sense of the Congress relating to level of United 
              States military personnel in the East Asia and 
              Pacific region (sec. 1225).........................   820
            Report on future military capabilities and strategy 
              of the People's Republic of China (sec. 1226)......   820
            Sense of Congress on need for Russian openness on the 
              Yamantau Mountain Project (sec. 1227)..............   820
            Assessment of the Cuban threat to United States 
              national security (sec. 1228)......................   821
            Report on Helsinki Joint Statement (sec. 1229).......   821
            Commendation of Mexico on free and fair elections 
              (sec. 1230)........................................   821
            Sense of Congress regarding Cambodia (sec. 1231).....   821
            Congratulating Governor Christopher Patten of Hong 
              Kong (sec. 1232)...................................   822
Title XIII--Arms Control and Related Matters.....................   822
    Legislative Provisions Adopted...............................   822
            Presidential report concerning detargeting of Russian 
              strategic missiles (sec. 1301).....................   822
            Limitation on retirement or dismantlement of 
              strategic nuclear delivery systems (sec. 1302).....   823
            Assistance for facilities subject to inspection under 
              the Chemical Weapons Convention (sec. 1303)........   823
            Transfers of authorizations for high-priority 
              counterproliferation programs (sec. 1304)..........   823
            Advice to the President and Congress regarding the 
              safety, security, and reliability of United States 
              nuclear weapons stockpile (sec. 1305)..............   824
            Reconstitution of Commission to Assess the Ballistic 
              Missile Threat to the United States (sec. 1306)....   824
            Sense of Congress regarding the relationship between 
              environmental laws and United States obligations 
              under the Chemical Weapons Convention (sec. 1307)..   824
            Extension of counterproliferation authorities for 
              support of United Nations Special Commission on 
              Iraq (sec. 1308)...................................   825
            Annual report on moratorium on use by Armed Forces of 
              antipersonnel landmines (sec. 1309)................   825
Title XIV--Cooperative Threat Reduction With States of Former 
  Soviet Union...................................................   826
    Legislative Provisions Adopted...............................   826
            Cooperative threat reduction (CTR) program (secs. 
              1401-1410).........................................   826
Title XV--Federal Charter for the Air Force Sergeants............   828
    Legislative Provisions Adopted...............................   828
            Federal Charter for the Air Force Sergeants 
              Association (secs. 1501-1516)......................   828
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   828
            Overview.............................................   828
Title XXI--Army..................................................   850
            Overview.............................................   850
    Items of Special Interest....................................   850
            Planning and design, Army............................   850
            Improvements of Military Family Housing, Army........   851
    Legislative Provisions Adopted...............................   851
            Correction in authorized uses of funds, Fort Irwin, 
              California (sec. 2105).............................   851
Title XXII--Navy.................................................   851
            Overview.............................................   851
    Items of Special Interest....................................   852
            Improvements of military family housing, Navy........   852
    Legislative Provisions Adopted...............................   852
            Authorization of military construction project at 
              Naval Station, Pascagoula, Mississippi, for which 
              funds have been appropriated (sec. 2205)...........   852
            Increase in authorization for military construction 
              projects at Naval Station Roosevelt Roads, Puerto 
              Rico (sec. 2206)...................................   852
Title XXIII--Air Force...........................................   852
            Overview.............................................   852
    Items of Special Interest....................................   853
            Improvements of military family housing, Air Force...   853
    Legislative Provisions Adopted...............................   853
            Authorization of military construction project at 
              McConnell Air Force Base, Kansas, for which funds 
              have been appropriated (sec. 2305).................   853
Title XXIV--Defense Agencies.....................................   853
            Overview.............................................   853
    Legislative Provisions Adopted...............................   854
            Clarification of authority relating to fiscal year 
              1997 project at Naval Station, Pearl Harbor, Hawaii 
              (sec. 2406)........................................   854
            Correction in authorized uses of funds, McClellan Air 
              Force Base, California (sec. 2407).................   854
            Modification of authority to carry out fiscal year 
              1995 projects (sec. 2408)..........................   854
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   854
            Overview.............................................   854
Title XXVI--Guard and Reserve Forces Facilities..................   855
            Overview.............................................   855
    Items of Special Interest....................................   855
            Reserve construction project, Oakdale, Pennsylvania..   855
    Legislative Provisions Adopted...............................   855
            Authorization of military construction projects for 
              which funds have been appropriated (sec. 2602).....   855
            Army Reserve construction project, Camp Williams, 
              Utah (sec. 2603)...................................   856
Title XXVII--Expiration and Extension of Authorizations..........   856
    Legislative Provisions Adopted...............................   856
            Extension of authorizations of certain fiscal year 
              1995 projects (sec. 2702)..........................   856
            Extension of authorizations of certain fiscal year 
              1994 projects (sec. 2703)..........................   856
            Extension of authorizations of certain fiscal year 
              1993 projects (sec. 2704)..........................   856
            Extension of availability of funds for construction 
              of relocatable over-the-horizon radar, Naval 
              Station Roosevelt Roads, Puerto Rico (sec. 2706)...   857
Title XXVIII--General Provisions.................................   857
    Legislative Provisions Adopted...............................   857
        Subtitle A--Military Construction Program and Military 
          Family Housing Changes.................................   857
            Use of mobility enhancement funds for unspecified 
              minor construction (sec. 2801).....................   857
            Limitation on the use of operation and maintenance 
              funds for facility repair projects (sec. 2802).....   857
            Leasing of military family housing, United States 
              Southern Command, Miami, Florida (sec. 2803).......   857
            Use of financial incentives provided as part of 
              energy savings and water conservation activities 
              (sec. 2804)........................................   858
            Congressional notification requirements regarding use 
              of Department of Defense housing funds for 
              investments in nongovernmental entities (sec. 2805)   858
        Subtitle B--Real Property and Facilities Administration..   858
            Increase in ceiling for minor land acquisition 
              projects (sec. 2811)...............................   858
            Permanent authority regarding conveyance of utility 
              systems (sec. 2812)................................   858
            Administrative expenses for certain real property 
              transactions (sec. 2813)...........................   859
            Screening of real property to be conveyed by the 
              Department of Defense (sec. 2814)..................   859
            Disposition of proceeds from sale of Air Force Plant 
              78, Brigham City, Utah (sec. 2815).................   860
            Fire protection and hazardous materials protection at 
              Fort Meade, Maryland (sec. 2816)...................   860
        Subtitle C--Defense Base Closure and Realignment.........   860
            Consideration of military installations as sites for 
              new Federal facilities (sec. 2821).................   860
            Adjustment and diversification assistance to enhance 
              performance of military family support services by 
              private sector sources (sec. 2822).................   861
            Security, fire protection, and other services at 
              property formerly associated with Red River Army 
              Depot, Texas (sec. 2823)...........................   861
            Report on closure and realignment of military 
              installations (sec. 2824)..........................   861
            Sense of Senate regarding utilization of savings 
              derived from base closure process (sec. 2825)......   862
            Prohibition against conveyance of property at Long 
              Beach Naval Station to China Ocean Shipping Company 
              (sec. 2826)........................................   862
        Subtitle D--Land Conveyances.............................   862
        Part I--Army Conveyances.................................   862
            Land conveyance, Army Reserve Center, Greensboro, 
              Alabama (sec. 2831)................................   862
            Land Conveyance, James T. Coker Army Reserve Center, 
              Durant, Oklahoma (sec. 2832).......................   863
            Land conveyance, Gibson Army Reserve Center, Chicago, 
              Illinois (sec. 2833)...............................   863
            Land conveyance, Fort A.P Hill, Virginia (sec. 2834).   863
            Land conveyances, Fort Dix, New Jersey (sec. 2835)...   863
            Land conveyances, Fort Bragg, North Carolina (sec. 
              2836)..............................................   864
            Land conveyance, Hawthorne Army Ammunition Depot, 
              Mineral County, Nevada (sec. 2837).................   864
            Expansion of land conveyance authority, Indiana Army 
              Ammunition Plant, Charlestown, Indiana (sec. 2838).   864
            Modification of land conveyance, Lompoc, California 
              (sec. 2839)........................................   865
            Modification of land conveyance, Rocky Mountain 
              Arsenal, Colorado (sec. 2840)......................   865
            Correction of land conveyance authority, Army Reserve 
              Center, Anderson, South Carolina (sec. 2841).......   865
        Part II--Navy Conveyances................................   865
            Land conveyance, Topsham Annex, Naval Air Station, 
              Brunswick, Maine (sec. 2851).......................   865
            Land conveyance, Naval Weapons Industrial Reserve 
              Plant No 464, Oyster Bay, New York (sec. 2852).....   866
            Correction of lease authority, Naval Air Station, 
              Meridian, Mississippi (sec. 2853)..................   866
        Part III--Air Force Conveyances..........................   866
            Land transfer, Eglin Air Force Base, Florida (sec. 
              2861)..............................................   866
            Land conveyance, March Air Force Base, California 
              (sec. 2862)........................................   866
            Land conveyance, Hancock Field, Syracuse, New York 
              (sec. 2864)........................................   867
            Land conveyance, Havre Air Force Station, Montana, 
              and Havre Training Site, Montana (sec. 2865).......   867
            Land conveyance, Charleston Family Housing Complex, 
              Bangor, Maine (sec. 2866)..........................   867
            Study of land exchange options, Shaw Air Force Base, 
              South Carolina (sec. 2867).........................   867
        Subtitle E--Other Matters................................   868
            Repeal of requirement to operate Naval Academy Dairy 
              Farm (sec. 2871)...................................   868
            Long-term lease of property, Naples, Italy (sec. 
              2872)..............................................   868
            Designation of military family housing at Lackland 
              Air Force Base, Texas, in honor of Frank Tejeda, a 
              former Member of the House of Representatives (sec. 
              2873)..............................................   868
            Fiber-optics based telecommunications linkage of 
              military installations (sec. 2874).................   868
    Legislative Provisions Not Adopted...........................   869
            Modification of authority for disposal of certain 
              real property, Fort Belvoir, Virginia..............   869
Title XXIX--Sikes Act Improvement................................   869
            Sikes Act Improvement (secs. 2901-2914)..............   869
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS.......................................   870
Title XXXI--Department of Energy National Security Programs......   870
    Legislative Provisions Adopted...............................   891
        Subtitle A--National Security Programs Authorizations....   891
            Weapons activities (sec. 3101).......................   891
            Environmental restoration and waste management (sec. 
              3102)..............................................   891
            Other defense activities (sec. 3103).................   893
        Subtitle B--Recurring General Provisions.................   895
            Limits on general plant projects (sec. 3122).........   895
            Fund transfer authority (sec. 3124)..................   896
            Authority for conceptual and construction design 
              (sec. 3125)........................................   896
            Availability of funds (sec. 3128)....................   896
            Transfers of defense environmental management funds 
              (sec. 3129)........................................   897
        Subtitle C--Program Authorizations, Restrictions, and 
          Limitations............................................   897
            Memorandum of understanding for use of national 
              laboratories for Ballistic Missile Defenses 
              programs (sec. 3131)...............................   897
            Defense environmental management privatization 
              projects (sec. 3132)...............................   897
            International cooperative stockpile stewardship 
              programs (sec. 3133)...............................   898
            Modernization of enduring nuclear weapons complex 
              (sec. 3134)........................................   898
            Tritium production (sec. 3135).......................   900
            Processing, treatment, and disposition of spent 
              nuclear fuel rods and other legacy nuclear 
              materials at the Savannah River Site (sec. 3136)...   900
            Limitations on use of funds for laboratory directed 
              research and development purposes (sec. 3137)......   901
            Pilot program relating to use of proceeds of disposal 
              or utilization of certain Department of Energy 
              assets (sec. 3138).................................   901
            Modification and extension of authority relating to 
              appointment of certain scientific, engineering, and 
              technical personnel (sec. 3139)....................   902
            Limitation on use of funds for subcritical nuclear 
              weapons tests (sec. 3140)..........................   902
            Limitation on use of certain funds until future use 
              plans are submitted (sec. 3141)....................   902
        Subtitle D--Other Matters................................   903
            Plan for stewardship, management, and certification 
              of warheads in the nuclear weapons stockpile (sec. 
              3151)..............................................   903
            Repeal of obsolete reporting requirements (sec. 3152)   903
            Study and funding relating to implementation of 
              workforce restructuring plans (sec. 3153)..........   903
            Plan for external oversight of national laboratories 
              (sec. 3154)........................................   904
            University-based research collaboration program (sec. 
              3155)..............................................   904
            Stockpile stewardship program (sec. 3156)............   904
            Reports on advanced supercomputer sales to certain 
              foreign nations (sec. 3157)........................   905
            Transfers of real property at certain Department of 
              Energy facilities (sec. 3159)......................   905
            Requirement to delegate certain authorities to site 
              manager of Hanford Reservation (sec 3150)..........   906
            Submittal of biennial waste management reports (sec 
              3160)..............................................   906
            Board on security functions of Department of Energy 
              (sec. 3161)........................................   906
            Submittal of annual report on status of security 
              functions at nuclear weapons facilities (sec. 3162)   906
            Modification of authority on commission on 
              maintaining United States nuclear weapons expertise 
              (sec. 3163)........................................   907
            Land transfer, Bandelier National Monument (sec. 
              3164)..............................................   907
            Final settlement of Department of Energy community 
              assistance obligations with respect to Los Alamos 
              National Laboratory, New Mexico (sec. 3165)........   907
            Sense of Congress regarding the Y-12 Plant in Oak 
              Ridge, Tennessee (sec. 3166).......................   908
            Support for public education in the vicinity of Los 
              Alamos National Laboratory, New Mexico (sec. 3167).   908
            Improvements to Greenville Road, Livermore, 
              California (sec. 3168).............................   908
            Report on alternative system for availability of 
              funds (sec. 3169)..................................   909
            Report on remediation under the Formerly Utilized 
              Sites Remedial Action Program (sec. 3170)..........   909
    Legislative Provisions Not Adopted...........................   909
            Report on proposed contract for Hanford tank waste 
              vitrification project..............................   909
            Defense environmental management privatization.......   910
            Tritium production in commercial facilities..........   910
            Administration of certain Department of Energy 
              activities.........................................   911
            Participation of the national security activities in 
              Hispanic Outreach Initiative of the Department of 
              Energy.............................................   912
Title XXXII--Defense Nuclear Facilities Safetyboard..............   912
    Legislative Provisions Adopted...............................   912
            Report on external regulation of defense nuclear 
              facilities (sec. 3202).............................   912
Title XXXIII--National Defense Stockpile.........................   913
    Legislative Provisions Adopted...............................   913
            Definitions (sec. 3301)..............................   913
            Authorized uses of stockpile funds (sec. 3302).......   913
            Authorized uses of beryllium copper master alloy in 
              National Defense Stockpile (sec. 3303).............   913
            Disposal of titanium sponge in the National Defense 
              Stockpile (sec. 3304)..............................   913
            Disposal of cobalt in National Defense Stockpile 
              (sec. 3305)........................................   913
            Required procedures for disposal of strategic and 
              critical materials (sec. 3306).....................   914
            Return of surplus platinum from the Department of the 
              Treasury (sec. 3307)...............................   914
    Legislative Provisions Not Adopted...........................   914
            Restrictions on disposal of certain manganese ferro..   914
Title XXXIV--Naval Petroleum Reserves............................   914
    Legislative Provisions Adopted...............................   914
            Price requirement on sale of certain petroleum during 
              fiscal year 1998 (sec. 3402).......................   914
            Repeal of requirement to assign Navy officers to 
              Office of Naval Petroleum and Oil Shale Reserves 
              (sec. 3403)........................................   915
            Transfer of jurisdiction, Naval Oil Shale Reserves 
              numbered 1 and 3 (sec. 3404).......................   915
Title XXXV--Panama Canal Commission..............................   915
            Panama Canal Commission (secs. 3501-3550)............   915
Title XXXVI--Maritime Administration.............................   916
    Legislative Provisions Adopted...............................   916
            Authorization of appropriations for fiscal year 1998 
              (sec. 3601)........................................   916
            Repeal of obsolete annual report requirement 
              concerning relative cost of shipbuilding in the 
              various coastal districts of the United States 
              (sec. 3602)........................................   916
            Provisions relating to maritime security fleet 
              program (sec. 3603)................................   916
            Authority to utilize replacement vessels and capacity 
              (sec. 3604)........................................   917
            Authority to convey National Defense Reserve Fleet 
              vessel (sec. 3605).................................   917
            Determination of gross tonnage for purposes of tank 
              vessel double hull requirements (sec. 3606)........   917
105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-340
_______________________________________________________________________



        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998

                                _______
                                

                October 23, 1997.--Ordered to be printed

_______________________________________________________________________


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

                           CONFERENCE REPORT

                        [To accompany H.R. 1119]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendments of the Senate to the bill 
(H.R. 1119) to authorize appropriations for fiscal year 1998 
for military activities of the Department of Defense, for 
military construction, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such 
fiscal year for the Armed Forces, 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 to the text of the bill and agree to 
the same with an amendment as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense 
Authorization Act for Fiscal Year 1998''.

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

    (a) Divisions.--This Act is organized into three divisions 
as follows:
            (1) Division A--Department of Defense 
        Authorizations.
            (2) Division B--Military Construction 
        Authorizations.
            (3) Division C--Department of Energy National 
        Security Authorizations and Other Authorizations.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.

                        Subtitle B--Army Programs

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for specified Army programs.
Sec. 113. M113 vehicle modifications.

                        Subtitle C--Navy Programs

Sec. 121. New Attack Submarine program.
Sec. 122. CVN-77 nuclear aircraft carrier program.
Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

                     Subtitle D--Air Force Programs

Sec. 131. Authorization for B-2 bomber program.
Sec. 132. ALR radar warning receivers.
Sec. 133. Analysis of requirements for replacement of engines on 
          military aircraft derived from Boeing 707 aircraft.

                        Subtitle E--Other Matters

Sec. 141. Pilot program on sales of manufactured articles and services 
          of certain Army industrial facilities without regard to 
          availability from domestic sources.
Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Sec. 204. Reduction in amount for Federally Funded Research and 
          Development Centers.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on operational field assessments program.
Sec. 213. Joint Strike Fighter program.
Sec. 214. Kinetic energy tactical anti-satellite technology program.
Sec. 215. Micro-satellite technology development program.
Sec. 216. High altitude endurance unmanned vehicle program.
Sec. 217. F-22 aircraft program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 231. National Missile Defense Program.
Sec. 232. Budgetary treatment of amounts for procurement for ballistic 
          missile defense programs.
Sec. 233. Cooperative Ballistic Missile Defense program.
Sec. 234. Annual report on threat posed to the United States by weapons 
          of mass destruction, ballistic missiles, and cruise missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Repeal of required deployment dates for core theater missile 
          defense programs

                        Subtitle D--Other Matters

Sec. 241. Restructuring of National Oceanographic Partnership Program 
          organizations.
Sec. 242. Maintenance and repair of real property at Air Force 
          installations.
Sec. 243. Expansion of eligibility for the Defense Experimental Program 
          to Stimulate Competitive Research.
Sec. 244. Bioassay testing of veterans exposed to ionizing radiation 
          during military service.
Sec. 245. Sense of Congress regarding Comanche program.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Fisher House Trust Funds.
Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Operation of prepositioned fleet, National Training Center, 
          Fort Irwin, California.
Sec. 308. Refurbishment and installation of air search radar.
Sec. 309. Contracted training flight services.
Sec. 310. Procurement technical assistance programs.
Sec. 311. Operation of Fort Chaffee, Arkansas.

                  Subtitle B--Military Readiness Issues

Sec. 321. Monthly reports on allocation of funds within operation and 
          maintenance budget subactivities.
Sec. 322. Expansion of scope of quarterly readiness reports.
Sec. 323. Semiannual reports on transfers from high-priority readiness 
          appropriations.
Sec. 324. Annual report on aircraft inventory.
Sec. 325. Administrative actions adversely affecting military training 
          or other readiness activities.
Sec. 326. Common measurement of operations tempo and personnel tempo.
Sec. 327. Inclusion of Air Force depot maintenance as operation and 
          maintenance budget line items.
Sec. 328. Prohibition of implementation of tiered readiness system.
Sec. 329. Report on military readiness requirements of the Armed Forces.
Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
Sec. 331. Report on military exercises conducted under certain training 
          exercises programs.
Sec. 332. Report on overseas deployments.

                  Subtitle C--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental 
          Research and Development Program Scientific Advisory Board.
Sec. 342. Amendments to authority to enter into agreements with other 
          agencies in support of environmental technology certification.
Sec. 343. Modifications of authority to store and dispose of nondefense 
          toxic and hazardous materials.
Sec. 344. Annual report on payments and activities in response to fines 
          and penalties assessed under environmental laws.
Sec. 345. Annual report on environmental activities of the Department of 
          Defense overseas.
Sec. 346. Review of existing environmental consequences of the presence 
          of the Armed Forces in Bermuda.
Sec. 347. Sense of Congress on deployment of United States Armed Forces 
          abroad for environmental preservation activities.
Sec. 348. Recovery and sharing of costs of environmental restoration at 
          Department of Defense sites.
Sec. 349. Partnerships for investment in innovative environmental 
          technologies.
Sec. 350. Procurement of recycled copier paper.
Sec. 351. Pilot program for the sale of air pollution emission reduction 
          incentives.

                   Subtitle D--Depot-Level Activities

Sec. 355. Definition of depot-level maintenance and repair.
Sec. 356. Core logistics capabilities of Department of Defense.
Sec. 357. Increase in percentage of depot-level maintenance and repair 
          that may be contracted for performance by non-government 
          personnel.
Sec. 358. Annual report on depot-level maintenance and repair.
Sec. 359. Requirement for use of competitive procedures in contracting 
          for performance of depot-level maintenance and repair 
          workloads formerly performed at closed or realigned military 
          installations.
Sec. 360. Clarification of prohibition on management of depot employees 
          by constraints on personnel levels.
Sec. 361. Centers of Industrial and Technical Excellence.
Sec. 362. Extension of authority for aviation depots and naval shipyards 
          to engage in defense-related production and services.
Sec. 363. Repeal of a conditional repeal of certain depot-level 
          maintenance and repair laws and a related reporting 
          requirement.
Sec. 364. Personnel reductions, Army depots participating in Army 
          Workload and Performance System.
Sec. 365. Report on allocation of core logistics activities among 
          Department of Defense facilities and private sector 
          facilities.
Sec. 366. Review of use of temporary duty assignments for ship repair 
          and maintenance.
Sec. 367. Sense of Congress regarding realignment of performance of 
          ground communication-electronic workload.

   Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 371. Reorganization of laws regarding commissaries and exchanges 
          and other morale, welfare, and recreation activities.
Sec. 372. Merchandise and pricing requirements for commissary stores.
Sec. 373. Limitation on noncompetitive procurement of brand-name 
          commercial items for resale in commissary stores.
Sec. 374. Treatment of revenues derived from commissary store 
          activities.
Sec. 375. Maintenance, repair, and renovation of Armed Forces Recreation 
          Center, Europe.
Sec. 376. Plan for use of public and private partnerships to benefit 
          morale, welfare, and recreation activities.

                        Subtitle F--Other Matters

Sec. 381. Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and Department of 
          Defense civilian employees.
Sec. 382. Center for Excellence in Disaster Management and Humanitarian 
          Assistance.
Sec. 383. Applicability of Federal printing requirements to Defense 
          Automated Printing Service.
Sec. 384. Study and notification requirements for conversion of 
          commercial and industrial type functions to contractor 
          performance.
Sec. 385. Collection and retention of cost information data on converted 
          services and functions.
Sec. 386. Financial assistance to support additional duties assigned to 
          Army National Guard.
Sec. 387. Competitive procurement of printing and duplication services.
Sec. 388. Continuation and expansion of demonstration program to 
          identify overpayments made to vendors.
Sec. 389. Development of standard forms regarding performance work 
          statement and request for proposal for conversion of certain 
          operational functions of military installations.
Sec. 390. Base operations support for military installations on Guam.
Sec. 391. Warranty claims recovery pilot program.
Sec. 392. Program to investigate fraud, waste, and abuse within 
          Department of Defense.
Sec. 393. Multitechnology automated reader card demonstration program.
Sec. 394. Reduction in overhead costs of Inventory Control Points.
Sec. 395. Inventory management.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
          contingencies.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          Reserves.
Sec. 413. End strengths for military technicians (dual status).

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Limitation on number of general and flag officers who may 
          serve in positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on 
          period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by 
          promotion boards.
Sec. 504. Authority to defer mandatory retirement for age of officers 
          serving as chaplains.
Sec. 505. Increase in number of officers allowed to be frocked to grades 
          of colonel and Navy captain.
Sec. 506. Increased years of commissioned service for mandatory 
          retirement of regular generals and admirals in grades above 
          major general and rear admiral.
Sec. 507. Uniform policy for requirement of exemplary conduct by 
          commanding officers and others in authority.
Sec. 508. Report on the command selection process for District Engineers 
          of the Army Corps of Engineers.

                  Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death 
          and disability benefits for reserve members who incur or 
          aggravate an illness in the line of duty.
Sec. 514. Authority to permit non-unit assigned officers to be 
          considered by vacancy promotion board to general officer 
          grades.
Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air 
          Force base security functions.
Sec. 516. Involuntary separation of reserve officers in an inactive 
          status.
Sec. 517. Federal status of service by National Guard members as honor 
          guards at funerals of veterans.

                    Subtitle C--Military Technicians

Sec. 521. Authority to retain on the reserve active-status list until 
          age 60 military technicians in the grade of brigadier general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report on feasibility and desirability of conversion of AGR 
          personnel to military technicians (dual status).

   Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                                Attrition

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for 
          military service.
Sec. 533. Improvements in physical fitness of recruits.

               Subtitle E--Military Education and Training

                   Part I--Officer Education Programs

Sec. 541. Requirement for candidates for admission to United States 
          Naval Academy to take oath of allegiance.
Sec. 542. Service academy foreign exchange program.
Sec. 543. Reimbursement of expenses incurred for instruction at service 
          academies of persons from foreign countries.
Sec. 544. Continuation of support to senior military colleges.
Sec. 545. Report on making United States nationals eligible for 
          participation in Senior Reserve Officers' Training Corps.
Sec. 546. Coordination of establishment and maintenance of Junior 
          Reserve Officers' Training Corps units to maximize enrollment 
          and enhance efficiency.

                    Part II--Other Education Matters

Sec. 551. United States Naval Postgraduate School.
Sec. 552. Community College of the Air Force.
Sec. 553. Preservation of entitlement to educational assistance of 
          members of the Selected Reserve serving on active duty in 
          support of a contingency operation.

               Part III--Training of Army Drill Sergeants

Sec. 556. Reform of Army drill sergeant selection and training process.
Sec. 557. Training in human relations matters for Army drill sergeant 
          trainees.

  Subtitle F--Commission on Military Training and Gender-Related Issues

Sec. 561. Establishment and composition of Commission.
Sec. 562. Duties.
Sec. 563. Administrative matters.
Sec. 564. Termination of Commission.
Sec. 565. Funding.
Sec. 566. Subsequent consideration by Congress.

               Subtitle G--Military Decorations and Awards

Sec. 571. Purple Heart to be awarded only to members of the Armed 
          Forces.
Sec. 572. Eligibility for Armed Forces Expeditionary Medal for 
          participation in Operation Joint Endeavor or Operation Joint 
          Guard.
Sec. 573. Waiver of time limitations for award of certain decorations to 
          specified persons.
Sec. 574. Clarification of eligibility of members of Ready Reserve for 
          award of service medal for heroism.
Sec. 575. One-year extension of period for receipt of recommendations 
          for decorations and awards for certain military intelligence 
          personnel.
Sec. 576. Eligibility of certain World War II military organizations for 
          award of unit decorations.
Sec. 577. Retroactivity of Medal of Honor special pension.

                  Subtitle H--Military Justice Matters

Sec. 581. Establishment of sentence of confinement for life without 
          eligibility for parole.
Sec. 582. Limitation on appeal of denial of parole for offenders serving 
          life sentence.

                        Subtitle I--Other Matters

Sec. 591. Sexual harassment investigations and reports.
Sec. 592. Sense of the Senate regarding study of matters relating to 
          gender equity in the Armed Forces.
Sec. 593. Authority for personnel to participate in management of 
          certain non-Federal entities.
Sec. 594. Treatment of participation of members in Department of Defense 
          civil military programs.
Sec. 595. Comptroller General study of Department of Defense civil 
          military programs.
Sec. 596. Establishment of public affairs specialty in the Army.
Sec. 597. Grade of defense attache in France.
Sec. 598. Report on crew requirements of WC-130J aircraft.
Sec. 599. Improvement of missing persons authorities applicable to 
          Department of Defense.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Reform of basic allowance for subsistence.
Sec. 603. Consolidation of basic allowance for quarters, variable 
          housing allowance, and overseas housing allowances.
Sec. 604. Revision of authority to adjust compensation necessitated by 
          reform of subsistence and housing allowances.
Sec. 605. Protection of total compensation of members while performing 
          certain duty.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
          authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
          authorities for nurse officer candidates, registered nurses, 
          and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
          bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive 
          pay for certain members.
Sec. 615. Increase in aviation career incentive pay.
Sec. 616. Modification of aviation officer retention bonus.
Sec. 617. Availability of multiyear retention bonus for dental officers.
Sec. 618. Increase in variable and additional special pays for certain 
          dental officers.
Sec. 619. Availability of special pay for duty at designated hardship 
          duty locations.
Sec. 620. Definition of sea duty for purposes of career sea pay.
Sec. 621. Modification of Selected Reserve reenlistment bonus.
Sec. 622. Modification of Selected Reserve enlistment bonus for former 
          enlisted members.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard 
          Reserve.
Sec. 624. Increase in special pay and bonuses for nuclear-qualified 
          officers.
Sec. 625. Provision of bonuses in lieu of special pay for enlisted 
          members extending tours of duty at designated locations 
          overseas.
Sec. 626. Increase in amount of family separation allowance.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents before 
          approval of member's court-martial sentence.
Sec. 632. Dislocation allowance.

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

Sec. 641. One-year opportunity to discontinue participation in Survivor 
          Benefit Plan.
Sec. 642. Time in which change in survivor benefit coverage from former 
          spouse to spouse may be made.
Sec. 643. Review of Federal former spouse protection laws.
Sec. 644. Annuities for certain military surviving spouses.
Sec. 645. Administration of benefits for so-called minimum income 
          widows.

                        Subtitle E--Other Matters

Sec. 651. Loan repayment program for commissioned officers in certain 
          health professions.
Sec. 652. Conformance of NOAA commissioned officers separation pay to 
          separation pay for members of other uniformed services.
Sec. 653. Eligibility of Public Health Service officers and NOAA 
          commissioned corps officers for reimbursement of adoption 
          expenses.
Sec. 654. Payment of back quarters and subsistence allowances to World 
          War II veterans who served as guerrilla fighters in the 
          Philippines.
Sec. 655. Subsistence of members of the Armed Forces above the poverty 
          level.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include 
          surviving spouse and child dependents of certain deceased 
          members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Sec. 703. Study concerning the provision of comparative information.

                       Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for Uniformed 
          Services Treatment Facilities.
Sec. 722. Continued acquisition of reduced-cost drugs.
Sec. 723. Limitation on total payments.

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

Sec. 731. Improvements in health care coverage and access for members 
          assigned to certain duty locations far from sources of care.
Sec. 732. Waiver or reduction of copayments under overseas dental 
          program.
Sec. 733. Premium collection requirements for medical and dental 
          insurance programs; extension of deadline for implementation 
          of dental insurance program for military retirees.
Sec. 734. Dental insurance plan coverage for retirees of the Public 
          Health Service and NOAA.
Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for 
          services.
Sec. 736. Use of personal services contracts for provision of health 
          care services and legal protection for providers.
Sec. 737. Portability of State licenses for Department of Defense health 
          care professionals.
Sec. 738. Standard form and requirements regarding claims for payment 
          for services.
Sec. 739. Chiropractic health care demonstration program.

                        Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician 
          assistant training program of Army Medical Department.
Sec. 742. Payment for emergency health care overseas for military and 
          civilian personnel of the On-Site Inspection Agency.
Sec. 743. Authority for agreement for use of medical resource facility, 
          Alamogordo, New Mexico.
Sec. 744. Disclosures of cautionary information on prescription 
          medications.
Sec. 745. Competitive procurement of certain ophthalmic services.
Sec. 746. Comptroller General study of adequacy and effect of maximum 
          allowable charges for physicians under CHAMPUS.
Sec. 747. Comptroller General study of Department of Defense pharmacy 
          programs.
Sec. 748. Comptroller General study of Navy graduate medical education 
          program.
Sec. 749. Study of expansion of pharmaceuticals by mail program to 
          include additional Medicare-eligible covered beneficiaries.
Sec. 750. Comptroller General study of requirement for military medical 
          facilities in National Capital Region.
Sec. 751. Report on policies and programs to promote healthy lifestyles 
          for members of the Armed Forces and their dependents.
Sec. 752. Sense of Congress regarding quality health care for retirees.

                    Subtitle F--Persian Gulf Illness

Sec. 761. Definitions.
Sec. 762. Plan for health care services for Persian Gulf veterans.
Sec. 763. Comptroller General study of revised disability criteria for 
          physical evaluation boards.
Sec. 764. Medical care for certain reserves who served in Southwest Asia 
          during the Persian Gulf War.
Sec. 765. Improved medical tracking system for members deployed overseas 
          in contingency or combat operations.
Sec. 766. Notice of use of investigational new drugs or drugs unapproved 
          for their applied use.
Sec. 767. Report on plans to track location of members in a theater of 
          operations.
Sec. 768. Sense of Congress regarding the deployment of specialized 
          units for detecting and monitoring chemical, biological, and 
          similar hazards in a theater of operations.
Sec. 769. Report on effectiveness of research efforts regarding Gulf War 
          illnesses.
Sec. 770. Persian Gulf illness clinical trials program.
Sec. 771. Sense of Congress concerning Gulf War illness.

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

 Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

Sec. 801. Expansion of authority to enter into contracts crossing fiscal 
          years to all severable service contracts not exceeding a year.
Sec. 802. Vesting of title in the United States under contracts paid 
          under progress payment arrangements or similar arrangements.
Sec. 803. Restriction on undefinitized contract actions.
Sec. 804. Limitation and report on payment of restructuring costs under 
          defense contracts.
Sec. 805. Increased price limitation on purchases of right-hand drive 
          vehicles.
Sec. 806. Multiyear procurement contracts.
Sec. 807. Audit of procurement of military clothing and clothing-related 
          items by military installations in the United States.
Sec. 808. Limitation on allowability of compensation for certain 
          contractor personnel.
Sec. 809. Elimination of certification requirement for grants.
Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
Sec. 811. Item-by-item and country-by-country waivers of domestic source 
          limitations.

               Subtitle B--Acquisition Assistance Programs

Sec. 821. One-year extension of pilot mentor-protege program.
Sec. 822. Test program for negotiation of comprehensive subcontracting 
          plans.

                  Subtitle C--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
          litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Unit cost reports.
Sec. 834. Plan for providing contracting information to general public 
          and small businesses.
Sec. 835. Two-year extension of crediting of certain purchases toward 
          meeting subcontracting goals.

                        Subtitle D--Other Matters

Sec. 841. Repeal of certain acquisition requirements and reports
Sec. 842. Use of major range and test facility installations by 
          commercial entities.
Sec. 843. Requirement to develop and maintain list of firms not eligible 
          for defense contracts.
Sec. 844. Sense of Congress regarding allowability of costs of employee 
          stock ownership plans.
Sec. 845. Expansion of personnel eligible to participate in 
          demonstration project relating to acquisition workforce.
Sec. 846. Time for submission of annual report relating to Buy American 
          Act.
Sec. 847. Repeal of requirement for contractor guarantees on major 
          weapon systems.
Sec. 848. Requirements relating to micro-purchases.
Sec. 849. Promotion rate for officers in an acquisition corps.
Sec. 850. Use of electronic commerce in Federal procurement.
Sec. 851. Conformance of policy on performance based management of 
          civilian acquisition programs with policy established for 
          defense acquisition programs.
Sec. 852. Modification of process requirements for the solutions-based 
          contracting pilot program.
Sec. 853. Guidance and standards for defense acquisition workforce 
          training requirements.
Sec. 854. Study and report to Congress assessing dependence on foreign 
          sources for resistors and capacitors.
Sec. 855. Department of Defense and Federal Prison Industries joint 
          study.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Positions and Organizations and Other 
                             General Matters

Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff for 
          National Guard matters and for Reserve matters.
Sec. 902. Use of CINC Initiative Fund for force protection.
Sec. 903. Revision to required frequency for provision of policy 
          guidance for contingency plans.
Sec. 904. Annual justification for Department of Defense advisory 
          committees.
Sec. 905. Airborne reconnaissance management.
Sec. 906. Termination of the Armed Services Patent Advisory Board.
Sec. 907. Coordination of Department of Defense criminal investigations 
          and audits.

         Subtitle B--Department of Defense Personnel Management

Sec. 911. Reduction in personnel assigned to management headquarters and 
          headquarters support activities.
Sec. 912. Defense acquisition workforce.

          Subtitle C--Department of Defense Schools and Centers

Sec. 921. Professional military education schools.
Sec. 922. Center for Hemispheric Defense Studies.
Sec. 923. Correction to reference to George C. Marshall European Center 
          for Security Studies.

     Subtitle D--Department of Defense Intelligence-Related Matters

Sec. 931. Transfer of certain military department programs from TIARA 
          budget aggregation.
Sec. 932. Report on coordination of access of commanders and deployed 
          units to intelligence collected and analyzed by the 
          intelligence community.
Sec. 933. Protection of imagery, imagery intelligence, and geospatial 
          information and data.
Sec. 934. POW/MIA intelligence analysis.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of unauthorized fiscal year 1997 
          defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
          for fiscal year 1997.
Sec. 1005. Increase in fiscal year 1996 transfer authority.
Sec. 1006. Revision of authority for Fisher House trust funds.
Sec. 1007. Flexibility in financing closure of certain outstanding 
          contracts for which a small final payment is due.
Sec. 1008. Biennial financial management improvement plan.
Sec. 1009. Estimates and requests for procurement and military 
          construction for the reserve components.
Sec. 1010. Sense of Congress regarding funding for reserve component 
          modernization not requested in President's budget.
Sec. 1011. Management of working-capital funds.
Sec. 1012. Authority of Secretary of Defense to settle claims relating 
          to pay, allowances, and other benefits.
Sec. 1013. Payment of claims by members for loss of personal property 
          due to flooding in Red River Basin.
Sec. 1014. Advances for payment of public services.
Sec. 1015. United States Man and the Biosphere Program limitation.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Procedures for sale of vessels stricken from the Naval Vessel 
          Register.
Sec. 1022. Authority to enter into a long-term charter for a vessel in 
          support of the Surveillance Towed-Array Sensor (SURTASS) 
          program.
Sec. 1023. Transfer of two specified obsolete tugboats of the Army.
Sec. 1024. Congressional review period with respect to transfer of ex-
          U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
Sec. 1025. Transfers of naval vessels to certain foreign countries.
Sec. 1026. Reports relating to export of vessels that may contain 
          polychlorinated biphenyls.
Sec. 1027. Conversion of defense capability preservation authority to 
          Navy shipbuilding capability preservation authority.

                   Subtitle C--Counter-Drug Activities

Sec. 1031. Use of National Guard for State drug interdiction and 
          counter-drug activities.
Sec. 1032. Authority to provide additional support for counter-drug 
          activities of Mexico.
Sec. 1033. Authority to provide additional support for counter-drug 
          activities of Peru and Colombia.
Sec. 1034. Annual report on development and deployment of narcotics 
          detection technologies.

        Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1041. Repeal of miscellaneous reporting requirements.
Sec. 1042. Study of transfer of modular airborne fire fighting system.
Sec. 1043. Overseas infrastructure requirements.
Sec. 1044. Additional matters for annual report on activities of the 
          General Accounting Office.
Sec. 1045. Eye safety at small arms firing ranges.
Sec. 1046. Reports on Department of Defense procedures for investigating 
          military aviation accidents and for notifying and assisting 
          families of victims.

                Subtitle E--Matters Relating to Terrorism

Sec. 1051. Oversight of counterterrorism and antiterrorism activities; 
          report.
Sec. 1052. Provision of adequate troop protection equipment for Armed 
          Forces personnel engaged in peace operations; report on 
          antiterrorism activities and protection of personnel.

            Subtitle F--Matters Relating to Defense Property

Sec. 1061. Lease of nonexcess personal property of military departments.
Sec. 1062. Lease of nonexcess property of Defense Agencies.
Sec. 1063. Donation of excess chapel property to churches damaged or 
          destroyed by arson or other acts of terrorism.
Sec. 1064. Authority of the Secretary of Defense concerning disposal of 
          assets under cooperative agreements on air defense in Central 
          Europe.
Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition and 
          ammunition components.
Sec. 1066. Transfer of B-17 aircraft to museum.
Sec. 1067. Report on disposal of excess and surplus materials.

                        Subtitle G--Other Matters

Sec. 1071. Authority for special agents of the Defense Criminal 
          Investigative Service to execute warrants and make arrests.
Sec. 1072. Study of investigative practices of military criminal 
          investigative organizations relating to sex crimes.
Sec. 1073. Technical and clerical amendments.
Sec. 1074. Sustainment and operation of the Global Positioning System.
Sec. 1075. Protection of safety-related information voluntarily provided 
          by air carriers.
Sec. 1076. National Guard Challenge Program to create opportunities for 
          civilian youth.
Sec. 1077. Disqualification from certain burial-related benefits for 
          persons convicted of capital crimes.
Sec. 1078. Restrictions on the use of human subjects for testing of 
          chemical or biological agents.
Sec. 1079. Treatment of military flight operations.
Sec. 1080. Naturalization of certain foreign nationals who serve 
          honorably in the Armed Forces during a period of conflict.
Sec. 1081. Applicability of certain pay authorities to members of 
          specified independent study organizations.
Sec. 1082. Display of POW/MIA flag.
Sec. 1083. Program to commemorate 50th anniversary of the Korean 
          conflict.
Sec. 1084. Commendation of members of the Armed Forces and Government 
          civilian personnel who served during the Cold War; certificate 
          of recognition.
Sec. 1085. Sense of Congress on granting of statutory Federal charters.
Sec. 1086. Sense of Congress regarding military voting rights.
Sec. 1087. Designation of Bob Hope as an honorary veteran of the Armed 
          Forces of the United States.
Sec. 1088. Five-year extension of aviation insurance program.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Use of prohibited constraints to manage Department of Defense 
          personnel.
Sec. 1102. Veterans' preference status for certain veterans who served 
          on active duty during the Persian Gulf War.
Sec. 1103. Repeal of deadline for placement consideration of 
          involuntarily separated military reserve technicians.
Sec. 1104. Rate of pay of Department of Defense overseas teachers upon 
          transfer to General Schedule position.
Sec. 1105. Garnishment and involuntary allotment.
Sec. 1106. Extension and revision of voluntary separation incentive pay 
          authority.
Sec. 1107. Use of approved fire-safe accommodations by Government 
          employees on official business.
Sec. 1108. Navy higher education pilot program regarding administration 
          of business relationships between Government and private 
          sector.
Sec. 1109. Authority for Marine Corps University to employ civilian 
          faculty members.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Withdrawal of United States ground forces from Republic of 
          Bosnia and Herzegovina.
Sec. 1204. Secretary of Defense reports on tasks carried out by United 
          States forces.
Sec. 1205. Presidential report on situation in Republic of Bosnia and 
          Herzegovina.
Sec. 1206. Definitions.

        Subtitle B--Export Controls on High Performance Computers

Sec. 1211. Export approvals for high performance computers.
Sec. 1212. Report on exports of high performance computers.
Sec. 1213. Post-shipment verification of export of high performance 
          computers.
Sec. 1214. GAO study on certain computers; end user information 
          assistance.
Sec. 1215. Congressional committees.

                        Subtitle C--Other Matters

Sec. 1221. Defense burdensharing.
Sec. 1222. Temporary use of general purpose vehicles and nonlethal 
          military equipment under acquisition and cross servicing 
          agreements.
Sec. 1223. Sense of Congress and reports regarding financial costs of 
          enlargement of the North Atlantic Treaty Organization.
Sec. 1224. Sense of Congress regarding enlargement of the North Atlantic 
          Treaty Organization.
Sec. 1225. Sense of the Congress relating to level of United States 
          military personnel in the East Asia and Pacific region.
Sec. 1226. Report on future military capabilities and strategy of the 
          People's Republic of China.
Sec. 1227. Sense of Congress on need for Russian openness on the 
          Yamantau Mountain project.
Sec. 1228. Assessment of the Cuban threat to United States national 
          security.
Sec. 1229. Report on Helsinki Joint statement.
Sec. 1230. Commendation of Mexico on free and fair elections.
Sec. 1231. Sense of Congress regarding Cambodia.
Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Sec. 1301. Presidential report concerning detargeting of Russian 
          strategic missiles.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
          nuclear delivery systems.
Sec. 1303. Assistance for facilities subject to inspection under the 
          Chemical Weapons Convention.
Sec. 1304. Transfers of authorizations for high-priority 
          counterproliferation programs.
Sec. 1305. Advice to the President and Congress regarding the safety, 
          security, and reliability of United States nuclear weapons 
          stockpile.
Sec. 1306. Reconstitution of commission to assess the ballistic missile 
          threat to the United States.
Sec. 1307. Sense of Congress regarding the relationship between United 
          States obligations under the Chemical Weapons Convention and 
          environmental laws.
Sec. 1308. Extension of counterproliferation authorities for support of 
          United Nations Special Commission on Iraq.
Sec. 1309. Annual report on moratorium on use by Armed Forces of 
          antipersonnel landmines.

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

Sec. 1401. Specification of Cooperative Threat Reduction programs and 
          funds.
Sec. 1402. Funding allocations.
Sec. 1403. Prohibition on use of funds for specified purposes.
Sec. 1404. Limitation on use of funds for projects related to START II 
          Treaty until submission of certification.
Sec. 1405. Limitation on use of funds for chemical weapons destruction 
          facility.
Sec. 1406. Limitation on use of funds for destruction of chemical 
          weapons.
Sec. 1407. Limitation on use of funds for storage facility for Russian 
          fissile material.
Sec. 1408. Limitation on use of funds for weapons storage security.
Sec. 1409. Report on issues regarding payment of taxes, duties, and 
          other assessments on assistance provided to Russia under 
          Cooperative Threat Reduction programs.
Sec. 1410. Availability of funds.

    TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION

Sec. 1501. Recognition and grant of Federal charter.
Sec. 1502. Powers.
Sec. 1503. Purposes.
Sec. 1504. Service of process.
Sec. 1505. Membership.
Sec. 1506. Board of directors.
Sec. 1507. Officers.
Sec. 1508. Restrictions.
Sec. 1509. Liability.
Sec. 1510. Maintenance and inspection of books and records.
Sec. 1511. Audit of financial transactions.
Sec. 1512. Annual report.
Sec. 1513. Reservation of right to alter, amend, or repeal charter.
Sec. 1514. Tax-exempt status required as condition of charter.
Sec. 1515. Termination.
Sec. 1516. Definition of State.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Correction in authorized uses of funds, Fort Irwin, 
          California.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization of military construction project at Naval 
          Station, Pascagoula, Mississippi, for which funds have been 
          appropriated.
Sec. 2206. Increase in authorization for military construction projects 
          at Naval Station Roosevelt Roads, Puerto Rico.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authorization of military construction project at McConnell 
          Air Force Base, Kansas, for which funds have been 
          appropriated.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Clarification of authority relating to fiscal year 1997 
          project at Naval Station, Pearl Harbor, Hawaii.
Sec. 2407. Correction in authorized uses of funds, McClellan Air Force 
          Base, California.
Sec. 2408. Modification of authority to carry out certain fiscal year 
          1995 projects.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.
Sec. 2602. Authorization of military construction projects for which 
          funds have been appropriated.
Sec. 2603. Army Reserve construction project, Camp Williams, Utah.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
          specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1995 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994 
          projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1993 
          projects.
Sec. 2705. Extension of authorizations of certain fiscal year 1992 
          projects.
Sec. 2706. Extension of availability of funds for construction of 
          relocatable over-the-horizon radar, Naval Station Roosevelt 
          Roads, Puerto Rico.
Sec. 2707. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                 Changes

Sec. 2801. Use of mobility enhancement funds for unspecified minor 
          construction.
Sec. 2802. Limitation on use of operation and maintenance funds for 
          facility repair projects.
Sec. 2803. Leasing of military family housing, United States Southern 
          Command, Miami, Florida.
Sec. 2804. Use of financial incentives provided as part of energy 
          savings and water conservation activities.
Sec. 2805. Congressional notification requirements regarding use of 
          Department of Defense housing funds for investments in 
          nongovernmental entities.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in ceiling for minor land acquisition projects.
Sec. 2812. Permanent authority regarding conveyance of utility systems.
Sec. 2813. Administrative expenses for certain real property 
          transactions.
Sec. 2814. Screening of real property to be conveyed by Department of 
          Defense.
Sec. 2815. Disposition of proceeds from sale of Air Force Plant 78, 
          Brigham City, Utah.
Sec. 2816. Fire protection and hazardous materials protection at Fort 
          Meade, Maryland.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Consideration of military installations as sites for new 
          Federal facilities.
Sec. 2822. Adjustment and diversification assistance to enhance 
          performance of military family support services by private 
          sector sources.
Sec. 2823. Security, fire protection, and other services at property 
          formerly associated with Red River Army Depot, Texas.
Sec. 2824. Report on closure and realignment of military installations.
Sec. 2825. Sense of Senate regarding utilization of savings derived from 
          base closure process.
Sec. 2826. Prohibition against certain conveyances of property at Naval 
          Station, Long Beach, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Land conveyance, Army Reserve Center, Greensboro, Alabama.
Sec. 2832. Land conveyance, James T. Coker Army Reserve Center, Durant, 
          Oklahoma.
Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago, 
          Illinois.
Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.
Sec. 2835. Land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyances, Fort Bragg, North Carolina.
Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot, Mineral 
          County, Nevada.
Sec. 2838. Expansion of land conveyance authority, Indiana Army 
          Ammunition Plant, Charlestown, Indiana.
Sec. 2839. Modification of land conveyance, Lompoc, California.
Sec. 2840. Modification of land conveyance, Rocky Mountain Arsenal, 
          Colorado.
Sec. 2841. Correction of land conveyance authority, Army Reserve Center, 
          Anderson, South Carolina.

                        Part II--Navy Conveyances

Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station, Brunswick, 
          Maine.
Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant No. 
          464, Oyster Bay, New York.
Sec. 2853. Correction of lease authority, Naval Air Station, Meridian, 
          Mississippi.

                     Part III--Air Force Conveyances

Sec. 2861. Land transfer, Eglin Air Force Base, Florida.
Sec. 2862. Land conveyance, March Air Force Base, California.
Sec. 2863. Land conveyance, Ellsworth Air Force Base, South Dakota.
Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.
Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and Havre 
          Training Site, Montana.
Sec. 2866. Land conveyance, Charleston Family Housing Complex, Bangor, 
          Maine.
Sec. 2867. Study of land exchange options, Shaw Air Force Base, South 
          Carolina.

                        Subtitle E--Other Matters

Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.
Sec. 2872. Long-term lease of property, Naples, Italy.
Sec. 2873. Designation of military family housing at Lackland Air Force 
          Base, Texas, in honor of Frank Tejeda, a former Member of the 
          House of Representatives.
Sec. 2874. Fiber-optics based telecommunications linkage of military 
          installations.

                    TITLE XXIX--SIKES ACT IMPROVEMENT

Sec. 2901. Short title.
Sec. 2902. Definition of Sikes Act for purposes of amendments.
Sec. 2903. Codification of short title of Act.
Sec. 2904. Preparation of integrated natural resources management plans.
Sec. 2905. Review for preparation of integrated natural resources 
          management plans.
Sec. 2906. Transfer of wildlife conservation fees from closed military 
          installations.
Sec. 2907. Annual reviews and reports.
Sec. 2908. Cooperative agreements.
Sec. 2909. Federal enforcement.
Sec. 2910. Natural resources management services.
Sec. 2911. Definitions.
Sec. 2912. Repeal of superseded provision.
Sec. 2913. Technical amendments.
Sec. 2914. Authorizations of appropriations.

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
          activities.
Sec. 3127. Funds available for all national security programs of the 
          Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Memorandum of understanding for use of national laboratories 
          for ballistic missile defense programs.
Sec. 3132. Defense environmental management privatization projects.
Sec. 3133. International cooperative stockpile stewardship.
Sec. 3134. Modernization of enduring nuclear weapons complex.
Sec. 3135. Tritium production.
Sec. 3136. Processing, treatment, and disposition of spent nuclear fuel 
          rods and other legacy nuclear materials at the Savannah River 
          Site.
Sec. 3137. Limitations on use of funds for laboratory directed research 
          and development purposes.
Sec. 3138. Pilot program relating to use of proceeds of disposal or 
          utilization of certain Department of Energy assets.
Sec. 3139. Modification and extension of authority relating to 
          appointment of certain scientific, engineering, and technical 
          personnel.
Sec. 3140. Limitation on use of funds for subcritical nuclear weapons 
          tests.
Sec. 3141. Limitation on use of certain funds until future use plans are 
          submitted.

                        Subtitle D--Other Matters

Sec. 3151. Plan for stewardship, management, and certification of 
          warheads in the nuclear weapons stockpile.
Sec. 3152. Repeal of obsolete reporting requirements.
Sec. 3153. Study and funding relating to implementation of workforce 
          restructuring plans.
Sec. 3154. Report and plan for external oversight of national 
          laboratories.
Sec. 3155. University-based research collaboration program.
Sec. 3156. Stockpile stewardship program.
Sec. 3157. Reports on advanced supercomputer sales to certain foreign 
          nations.
Sec. 3158. Transfers of real property at certain Department of Energy 
          facilities.
Sec. 3159. Requirement to delegate certain authorities to site manager 
          of Hanford Reservation.
Sec. 3160. Submittal of biennial waste management reports.
Sec. 3161. Department of Energy Security Management Board.
Sec. 3162. Submittal of annual report on status of security functions at 
          nuclear weapons facilities.
Sec. 3163. Modification of authority on Commission on Maintaining United 
          States Nuclear Weapons Expertise.
Sec. 3164. Land transfer, Bandelier National Monument.
Sec. 3165. Final settlement of Department of Energy community assistance 
          obligations with respect to Los Alamos National Laboratory, 
          New Mexico.
Sec. 3166. Sense of Congress regarding the Y-12 Plant in Oak Ridge, 
          Tennessee.
Sec. 3167. Support for public education in the vicinity of Los Alamos 
          National Laboratory, New Mexico.
Sec. 3168. Improvements to Greenville Road, Livermore, California.
Sec. 3169. Report on alternative system for availability of funds.
Sec. 3170. Report on remediation under the Formerly Utilized Sites 
          Remedial Action Program.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
Sec. 3202. Report on external regulation of defense nuclear facilities.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of beryllium copper master alloy in National Defense 
          Stockpile.
Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.
Sec. 3305. Disposal of cobalt in National Defense Stockpile.
Sec. 3306. Required procedures for disposal of strategic and critical 
          materials.
Sec. 3307. Return of surplus platinum from the Department of the 
          Treasury.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
          year 1998.
Sec. 3403. Repeal of requirement to assign Navy officers to Office of 
          Naval Petroleum and Oil Shale Reserves.
Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 1 
          and 3.

                   TITLE XXXV--PANAMA CANAL COMMISSION

      Subtitle A--Authorization of Expenditures From Revolving Fund

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.

           Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to canal transition.

Part I--Transition Matters Relating to Commission Officers and Employees

Sec. 3521. Authority for the Administrator of the Commission to accept 
          appointment as the Administrator of the Panama Canal 
          Authority.
Sec. 3522. Post-Canal transfer personnel authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation of 
          Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for 
          Commission personnel no longer subject to Federal travel 
          regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance pay 
          for certain employees separated by Panama Canal Authority 
          after Canal Transfer Date.

Part II--Transition Matters Relating to Operation and Administration of 
                                  Canal

Sec. 3541. Establishment of procurement system and Board of Contract 
          Appeals.
Sec. 3542. Transactions with the Panama Canal Authority.
Sec. 3543. Time limitations on filing of claims for damages.
Sec. 3544. Tolls for small vessels.
Sec. 3545. Date of actuarial evaluation of FECA liability.
Sec. 3546. Appointment of notaries public.
Sec. 3547. Commercial services.
Sec. 3548. Transfer from President to Commission of certain regulatory 
          functions relating to employment classification appeals.
Sec. 3549. Enhanced printing authority.
Sec. 3550. Technical and conforming amendments.

                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1998.
Sec. 3602. Repeal of obsolete annual report requirement concerning 
          relative cost of shipbuilding in the various coastal districts 
          of the United States.
Sec. 3603. Provisions relating to maritime security fleet program.
Sec. 3604. Authority to utilize replacement vessels and capacity.
Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.
Sec. 3606. Determination of gross tonnage for purposes of tank vessel 
          double hull requirements.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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



            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS



                          TITLE I--PROCUREMENT



               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.

                        Subtitle B--Army Programs

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for specified Army programs.
Sec. 113. M113 vehicle modifications.

                        Subtitle C--Navy Programs

Sec. 121. New Attack Submarine program.
Sec. 122. CVN-77 nuclear aircraft carrier program.
Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

                     Subtitle D--Air Force Programs

Sec. 131. Authorization for B-2 bomber program.
Sec. 132. ALR radar warning receivers.
Sec. 133. Analysis of requirements for replacement of engines on 
          military aircraft derived from Boeing 707 aircraft.

                        Subtitle E--Other Matters

Sec. 141. Pilot program on sales of manufactured articles and services 
          of certain Army industrial facilities without regard to 
          availability from domestic sources.
Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998 for procurement for the Army as follows:
            (1) For aircraft, $1,316,233,000.
            (2) For missiles, $742,639,000.
            (3) For weapons and tracked combat vehicles, 
        $1,297,641,000.
            (4) For ammunition, $1,011,193,000.
            (5) For other procurement, $2,566,208,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated 
for fiscal year 1998 for procurement for the Navy as follows:
            (1) For aircraft, $6,437,330,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,089,443,000.
            (3) For shipbuilding and conversion, 
        $8,195,269,000.
            (5) For other procurement, $2,970,867,000.
    (b) Marine Corps.--Funds are hereby authorized to be 
appropriated for fiscal year 1998 for procurement for the 
Marine Corps in the amount of $460,081,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby 
authorized to be appropriated for procurement of ammunition for 
the Navy and the Marine Corps in the amount of $364,744,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998 for procurement for the Air Force as follows:
            (1) For aircraft, $6,425,749,000.
            (2) For missiles, $2,376,301,000.
            (3) For ammunition, $398,534,000.
            (4) For other procurement, $6,543,580,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998 for Defense-wide procurement in the amount of 
$2,057,150,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998 for procurement of aircraft, vehicles, communications 
equipment, and other equipment for the reserve components of 
the Armed Forces as follows:
            (1) For the Army National Guard, $70,000,000.
            (2) For the Air National Guard, $303,000,000.
            (3) For the Army Reserve, $75,000,000.
            (4) For the Naval Reserve, $80,000,000.
            (5) For the Air Force Reserve, $50,000,000.
            (6) For the Marine Corps Reserve, $65,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998 for procurement for the Inspector General of the 
Department of Defense in the amount of $1,800,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal 
year 1998 the amount of $600,700,000 for--
            (1) the destruction of lethal chemical agents and 
        munitions in accordance with section 1412 of the 
        Department of Defense Authorization Act, 1986 (50 
        U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of 
        the United States that is not covered by section 1412 
        of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998 for the Department of Defense for procurement for 
carrying out health care programs, projects, and activities of 
the Department of Defense in the total amount of $274,068,000.

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998 for the Department of Defense for carrying out the 
Defense Export Loan Guarantee Program under section 2540 of 
title 10, United States Code, in the total amount of 
$1,231,000.

                       Subtitle B--Army Programs

SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.

    (a) Limitation.--Not more than 80 percent of the total of 
the amounts authorized to be appropriated pursuant to section 
101(1), 105(1), and 105(3) for modifications or upgrades of 
helicopters may be obligated before the date that is 30 days 
after the date on which the Secretary of the Army submits to 
the congressional defense committees a comprehensive plan for 
the modernization of the Army's helicopter fleet.
    (b) Content of Plan.--The plan required by subsection (a) 
shall include the following:
            (1) A detailed assessment of the Army's present and 
        future helicopter requirements and present and future 
        helicopter inventory, including number of aircraft, age 
        of aircraft, availability of spare parts, flight hour 
        costs, roles and functions assigned to the fleet as a 
        whole and to its individual types of aircraft, and the 
        mix of active component aircraft and reserve component 
        aircraft in the fleet.
            (2) Estimates and analysis of requirements and 
        funding proposed for procurement of new aircraft.
            (3) An analysis of the requirements for and funding 
        proposed for extended service plans or service life 
        extension plans for fleet aircraft.
            (4) A plan for retiring aircraft no longer required 
        or capable of performing assigned functions, including 
        a discussion of opportunities to eliminate older 
        aircraft models and to focus future funding on current 
        or future generation aircraft.
            (5) The implications of the plan for the defense 
        industrial base.
    (c) Relationship to Future-Years Defense Program.--The 
Secretary of the Army shall design the plan under subsection 
(a) so that the plan could be implemented within the funding 
levels expected to be available for Army aircraft programs in 
the next future-years defense program to be submitted to 
Congress pursuant to section 221(a) of title 10, United States 
Code. The Secretary shall include in the plan a certification 
that the program of the Army prepared for inclusion in the 
future-years defense program submitted to Congress in 1998 
pursuant to section 221(a) of title 10, United States Code, 
included full funding for implementation of the plan.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR SPECIFIED ARMY PROGRAMS.

    (a) AH-64D Longbow Apache Fire Control Radar.--Beginning 
with the fiscal year 1998 program year, the Secretary of the 
Army may, in accordance with section 2306b of title 10, United 
States Code, enter into a multiyear procurement contract for 
procurement of the AH-64D Longbow Apache fire control radar.
    (b) Medium Tactical Vehicles.--Beginning with the fiscal 
year 1998 program year, the Secretary of the Army may, in 
accordance with section 2306b of title 10, United States Code, 
enter into a multiyear procurement contract for procurement of 
vehicles of the Family of Medium Tactical Vehicles. The 
contract may be for a term of four years and may include an 
option to extend the contract for one additional year.

SEC. 113. M113 VEHICLE MODIFICATIONS.

    Of the amount made available for the Army pursuant to 
section 101(3), $35,244,000 shall be available only for the 
procurement and installation of A3 upgrade kits for the M113 
vehicle.

                       Subtitle C--Navy Programs

SEC. 121. NEW ATTACK SUBMARINE PROGRAM.

    (a) Amounts Authorized From SCN Account.--Of the amounts 
authorized to be appropriated by section 102(a)(3) for fiscal 
year 1998, $2,599,800,000 is available for the New Attack 
Submarine Program.
    (b) Contract Authority.--(1) The Secretary of the Navy may 
enter into a contract for the procurement of four submarines 
under the New Attack Submarine program.
    (2) Any contract entered into under paragraph (1)--
            (A) shall, notwithstanding section 2304(k) of title 
        10, United States Code, be awarded to one of the two 
        eligible shipbuilders as the prime contractor on the 
        condition that the prime contractor enter into one or 
        more subcontracts (under such prime contract) with the 
        other of the two eligible shipbuilders as contemplated 
        in the New Attack Submarine Team Agreement; and
            (B) shall provide for--
                    (i) construction of the first submarine in 
                fiscal year 1998; and
                    (ii) advance construction and advance 
                procurement of materiel for the second, third, 
                and fourth submarines in fiscal year 1998.
    (3) The following shipbuilders are eligible for a contract 
under this subsection:
            (A) The Electric Boat Corporation.
            (B) The Newport News Shipbuilding and Drydock 
        Company.
    (4) In paragraph (2)(A), the term ``New Attack Submarine 
Team Agreement'' means the agreement known as the Team 
Agreement between Electric Boat Corporation and Newport News 
Shipbuilding and Drydock Company, dated February 25, 1997, that 
was submitted to Congress by the Secretary of the Navy on March 
31, 1997.
    (c) Limitation of Liability.--If a contract entered into 
under this section 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.
    (d) Repeals of Superseded Provisions of Previous Defense 
Authorization Laws.--(1) Section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 206) is amended--
            (A) in subsection (a)(1)(B)--
                    (i) in clause (i), by striking out ``, 
                which shall be built by Electric Boat 
                Division''; and
                    (ii) in clause (ii), by striking out ``, 
                which shall be built by Newport News 
                Shipbuilding''; and
            (B) in subsection (b), by striking out paragraph 
        (1).
    (2) Section 121 of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2441) is 
amended--
            (A) in subsection (a)--
                    (i) in paragraph (1)(B), by striking out 
                ``to be built by Electric Boat Division''; and
                    (ii) in paragraph (1)(C), by striking out 
                ``to be built by Newport News Shipbuilding'';
            (B) in subsection (d), by striking out paragraph 
        (2);
            (C) in subsection (e), by striking out paragraph 
        (1); and
            (D) in subsection (g), by striking out ``the 
        committees specified in subsection (e)(1)'' in 
        paragraphs (3) and (4) and inserting in lieu thereof 
        ``the Committee on Armed Services of the Senate and the 
        Committee on National Security of the House of 
        Representatives''.
    (e) Inapplicability of Superseded Aspects of Attack 
Submarine Development Plan.--The Secretary of Defense and the 
Secretary of the Navy are not required to carry out the 
portions of the program plan submitted under subsection (c) of 
section 131 of the National Defense Authorization Act for 
Fiscal Year 1996 that are included in the plan pursuant to 
subparagraphs (A), (B), and (E) of paragraph (2) of such 
subsection.

SEC. 122. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

    (a) Authorization of Ship.--The Secretary of the Navy is 
authorized to procure the aircraft carrier to be designated 
CVN-77, subject to the availability of appropriations for that 
purpose.
    (b) Amount Authorized From SCN Account.--Of the amount 
authorized to be appropriated by section 102(a)(3) for fiscal 
year 1998, $50,000,000 is available for the advance procurement 
and advance construction of components (including nuclear 
components) for the CVN-77 aircraft carrier program. The 
Secretary of the Navy may enter into a contract or contracts 
with the shipbuilder and other entities for the advance 
procurement and advance construction of those components.
    (c) Other Funds.--Of the funds authorized to be 
appropriated under this Act for programs, projects, and 
activities of the military departments and Defense Agencies, 
other than the CVN-77 aircraft carrier program, up to 
$295,000,000 may be made available, as the Secretary of Defense 
may direct, for the CVN-77 aircraft carrier program. Authority 
to make transfers under this subsection is in addition to the 
transfer authority provided in section 1001.
    (d) Management of Funds.--The Secretary of the Navy shall 
obligate and expend the funds available for advance procurement 
and advance construction of components for the CVN-77 aircraft 
carrier program for fiscal year 1998 in a manner that is 
designed to result in such cost savings as may be required in 
order to meet the cost limitation specified in subsection (f).
    (e) Adjustments to Future-Years Defense Program.--The 
Secretary of Defense shall make such plans for the CVN-77 
aircraft carrier program as are necessary to attain for the 
program the cost savings that are contemplated for the 
procurement of the CVN-77 aircraft carrier in the March 1997 
procurement plan.
    (f) Limitation on Total Cost of Procurement.--(1) The 
Secretary of the Navy shall structure the program for the 
procurement of the CVN-77 aircraft carrier, and shall manage 
that program, so that the total cost of the procurement of the 
CVN-77 aircraft carrier does not exceed $4,600,000,000 (such 
amount being the estimated cost for the procurement of the CVN-
77 aircraft carrier in the March 1997 procurement plan).
    (2) The Secretary of the Navy may adjust the amount set 
forth in paragraph (1) for the CVN-77 aircraft carrier program 
by the following:
            (A) The amounts of outfitting costs and post-
        delivery costs incurred for the program.
            (B) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 
        1997.
            (C) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, 
        State, or local laws enacted after September 30, 1997.
            (D) The amounts of increases or decreases in costs 
        of the program that are attributable to new technology 
        built into the CVN-77 aircraft carrier, as compared to 
        the technology built into the baseline design of the 
        CVN-76 aircraft carrier.
            (E) The amounts of increases or decreases in costs 
        resulting from changes the Secretary proposes in the 
        funding plan (as contemplated in the March 1997 
        procurement plan) on which the projected savings are 
        based.
    (3) The Secretary of the Navy shall annually submit to 
Congress, at the same time as the budget is submitted under 
section 1105(a) of title 31, United States Code, written notice 
of any change in the amount set forth in paragraph (1) during 
the preceding fiscal year that the Secretary has determined to 
be associated with a cost referred to in paragraph (2).
    (g) March 1997 Procurement Plan Defined.--In this section, 
the term ``March 1997 procurement plan'' means the procurement 
plan for the CVN-77 aircraft carrier that was submitted to the 
Navy and Congress by the shipbuilder in March 1997.

SEC. 123. EXCLUSION FROM COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

    (a) Authority To Exclude Amounts Appropriated for Canceled 
Vessels.--(1) The Secretary of the Navy may exclude from the 
application of the cost limitation for the Seawolf submarine 
program such amounts, not in excess of $272,400,000, as were 
appropriated for fiscal years 1990, 1991, and 1992 for 
procurement of Seawolf-class submarines that have been 
canceled.
    (2) For the purposes of this subsection, the term ``cost 
limitation for the Seawolf submarine program'' means the 
limitation in section 133(a) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 211).
    (b) Determination and Report by Inspector General.--(1) Not 
later than March 30, 1998, the Inspector General of the 
Department of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report containing the 
Inspector General's determination as to whether any further 
exclusion from, adjustment to exclusion from, or increase in 
the dollar amount of the cost limitation referred to in 
subsection (a) will be required.
    (2) The Inspector General shall include in the report the 
following:
            (A) A thorough and comprehensive accounting for the 
        amount of $745,400,000 identified by the Secretary of 
        the Navy as having been obligated or expended for the 
        detailed design for Seawolf-class submarines that have 
        been canceled and for the procurement of nuclear 
        components and construction spare parts for those 
        canceled submarines, including a statement of the 
        current disposition of items specifically purchased 
        using those funds.
            (B) Cost growth, if any, in the cost of 
        construction of the SSN-21, SSN-22, and SSN-23 Seawolf-
        class submarines that has not been reported to Congress 
        before the date of the report of the Inspector General.
            (C) The current cost estimate of the Secretary of 
        the Navy for completion of the SSN-21, SSN-22, and SSN-
        23 Seawolf-class submarines.
    (3) The Inspector General shall include in the report such 
supporting information and analyses as the Inspector General 
considers appropriate for aiding in understanding the 
determination and findings of the Inspector General.

                     Subtitle D--Air Force Programs

SEC. 131. AUTHORIZATION FOR B-2 BOMBER PROGRAM.

    (a) Funding Availability.--Of the funds made available for 
procurement of aircraft for the Air Force for fiscal year 1998, 
the amount of $331,000,000 is available for long-lead 
activities related to the procurement of additional B-2 bomber 
aircraft. However, if the President determines that no 
additional B-2 bombers should be procured during fiscal year 
1998 and certifies that decision to Congress, the funding 
authorized in the preceding sentence shall be made available to 
modify and repair the existing fleet of B-2 bomber aircraft.
    (b) Secretary of Defense To Preserve Options of 
President.--The Secretary of Defense shall ensure that all 
appropriate actions are taken to preserve the options of the 
President until the panel to review long-range airpower 
established by section 8131 of the Department of Defense 
Appropriations Act, 1998 (Public Law 105-56; 111 Stat. 1249), 
submits its report.

SEC. 132. ALR RADAR WARNING RECEIVERS.

    (a) Cost and Operation Effectiveness Analysis.--The 
Secretary of the Air Force shall conduct a cost and operation 
effectiveness analysis of upgrading the ALR69 radar warning 
receiver as compared with the further acquisition of the ALR56M 
radar warning receiver.
    (b) Submission to Congress.--The Secretary shall submit the 
cost and operation effectiveness analysis to the congressional 
defense committees not later than April 2, 1998.

SEC. 133. ANALYSIS OF REQUIREMENTS FOR REPLACEMENT OF ENGINES ON 
                    MILITARY AIRCRAFT DERIVED FROM BOEING 707 AIRCRAFT.

    (a) Analysis Required.--The Secretary of Defense shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
an analysis, to be carried out by the Under Secretary of 
Defense for Acquisition and Technology, of the requirements of 
the Department of Defense for replacing engines on the aircraft 
of the Department of Defense that are derived from the Boeing 
707 aircraft and the costs of meeting those requirements.
    (b) Content.--The analysis shall include the following:
            (1) The number of aircraft described in subsection 
        (a) that are in the inventory of the Department of 
        Defense as of October 1, 1997, and the number of such 
        aircraft that are projected to be in the inventory of 
        the Department as of October 1, 2002, as of October 1, 
        2007, and as of October 1, 2012.
            (2) For each type of such aircraft, the estimated 
        cost of operating the aircraft for each fiscal year 
        beginning with fiscal year 1998 and ending with fiscal 
        year 2014, taking into account historical patterns of 
        usage and projected support costs.
            (3) For each type of such aircraft, the estimated 
        costs and the benefits of replacing the engines on the 
        aircraft, analyzed on the basis of the experience under 
        the limited program for replacing the engines on RC-135 
        aircraft that was undertaken during fiscal years 1995, 
        1996, and 1997.
            (4) Various plans for replacement of engines that 
        the Under Secretary considers best on the basis of 
        costs and benefits.
    (c) Submission Deadline.--The analysis under subsection (a) 
shall be submitted not later than March 1, 1998.

                       Subtitle E--Other Matters

SEC. 141. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND SERVICES 
                    OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT 
                    REGARD TO AVAILABILITY FROM DOMESTIC SOURCES.

    (a) Pilot Program Required.--During fiscal years 1998 and 
1999, the Secretary of the Army shall carry out a pilot program 
to test the efficacy and appropriateness of selling 
manufactured articles and services of Army industrial 
facilities under section 4543 of title 10, United States Code, 
without regard to the availability of the articles and services 
from United States commercial sources. In carrying out the 
pilot program, the Secretary may use articles manufactured at, 
and services provided by, not more than three Army industrial 
facilities.
    (b) Temporary Waiver of Requirement for Determination of 
Unavailability From Domestic Source.--Under the pilot program, 
the Secretary of the Army is not required under section 
4543(a)(5) of title 10, United States Code, to determine 
whether an article or service is available from a commercial 
source located in the United States in the case of any of the 
following sales for which a solicitation of offers is issued 
during fiscal year 1998 or 1999:
            (1) A sale of articles to be incorporated into a 
        weapon system being procured by the Department of 
        Defense.
            (2) A sale of services to be used in the 
        manufacture of a weapon system being procured by the 
        Department of Defense.
    (c) Review by Inspector General.--The Inspector General of 
the Department of Defense shall review the experience under the 
pilot program under this section and, not later than July 1, 
1999, submit to Congress a report on the results of the review. 
The report shall contain the following:
            (1) The Inspector General's views regarding the 
        extent to which the waiver under subsection (b) 
        enhances the opportunity for United States 
        manufacturers, assemblers, developers, and other 
        concerns to enter into or participate in contracts and 
        teaming arrangements with Army industrial facilities 
        under weapon system programs of the Department of 
        Defense.
            (2) The Inspector General's views regarding the 
        extent to which the waiver under subsection (b) 
        enhances the opportunity for Army industrial facilities 
        referred to in section 4543(a) of title 10, United 
        States Code, to enter into or participate in contracts 
        and teaming arrangements with United States 
        manufacturers, assemblers, developers, and other 
        concerns under weapon system programs of the Department 
        of Defense.
            (3) The Inspector General's views regarding the 
        effect of the waiver under subsection (b) on the 
        ability of small businesses to compete for the sale of 
        manufactured articles or services in the United States 
        in competitions to enter into or participate in 
        contracts and teaming arrangements under weapon system 
        programs of the Department of Defense.
            (4) Specific examples under the pilot program that 
        support the Inspector General's views.
            (5) Any other information that the Inspector 
        General considers pertinent regarding the effects of 
        the waiver of section 4543(a)(5) of title 10, United 
        States Code, under the pilot program on opportunities 
        for United States manufacturers, assemblers, 
        developers, or other concerns, and for Army industrial 
        facilities, to enter into or participate in contracts 
        and teaming arrangements under weapon system programs 
        of the Department of Defense.
            (6) Any recommendations that the Inspector General 
        considers appropriate regarding continuation or 
        modification of the policy set forth in section 
        4543(a)(5) of title 10, United States Code.

SEC. 142. NATO JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM.

    (a) Funding.--Amounts authorized to be appropriated under 
this title and title II are available for a NATO alliance 
ground surveillance capability that is based on the Joint 
Surveillance/Target Attack Radar System of the United States, 
as follows:
            (1) Of the amount authorized to be appropriated 
        under section 101(5), $26,153,000.
            (2) Of the amount authorized to be appropriated 
        under section 103(1), $10,000,000.
            (3) Of the amount authorized to be appropriated 
        under section 201(1), $13,500,000.
            (4) Of the amount authorized to be appropriated 
        under section 201(3), $26,061,000.
    (b) Authority.--(1) Subject to paragraph (2), the Secretary 
of Defense may utilize authority under section 2350b of title 
10, United States Code, for contracting for the purposes of 
Phase I of a NATO Alliance Ground Surveillance capability that 
is based on the Joint Surveillance/Target Attack Radar System 
of the United States, notwithstanding the condition in such 
section that the authority be utilized for carrying out 
contracts or obligations incurred under section 27(d) of the 
Arms Export Control Act (22 U.S.C. 2767(d)).
    (2) The authority under paragraph (1) applies during the 
period that the conclusion of a cooperative project agreement 
for a NATO Alliance Ground Surveillance capability under 
section 27(d) of the Arms Export Control Act is pending, as 
determined by the Secretary of Defense.
    (c) Modification of Air Force Aircraft.--Amounts available 
pursuant to paragraphs (2) and (4) of subsection (a) may be 
used to provide for modifying two Air Force Joint Surveillance/
Target Attack Radar System production aircraft to have a NATO 
Alliance Ground Surveillance capability that is based on the 
Joint Surveillance/Target Attack Radar System of the United 
States.



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



               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Sec. 204. Reduction in amount for Federally Funded Research and 
          Development Centers.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on operational field assessments program.
Sec. 213. Joint Strike Fighter program.
Sec. 214. Kinetic energy tactical anti-satellite technology program.
Sec. 215. Micro-satellite technology development program.
Sec. 216. High altitude endurance unmanned vehicle program.
Sec. 217. F-22 aircraft program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 231. National Missile Defense Program.
Sec. 232. Budgetary treatment of amounts for procurement for ballistic 
          missile defense programs.
Sec. 233. Cooperative Ballistic Missile Defense program.
Sec. 234. Annual report on threat posed to the United States by weapons 
          of mass destruction, ballistic missiles, and cruise missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Repeal of required deployment dates for core theater missile 
          defense programs

                        Subtitle D--Other Matters

Sec. 241. Restructuring of National Oceanographic Partnership Program 
          organizations.
Sec. 242. Maintenance and repair of real property at Air Force 
          installations.
Sec. 243. Expansion of eligibility for the Defense Experimental Program 
          to Stimulate Competitive Research.
Sec. 244. Bioassay testing of veterans exposed to ionizing radiation 
          during military service.
Sec. 245. Sense of Congress regarding Comanche program.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998 for the use of the Department of Defense for 
research, development, test, and evaluation as follows:
            (1) For the Army, $4,633,495,000.
            (2) For the Navy, $7,774,877,000.
            (3) For the Air Force, $14,338,934,000.
            (4) For Defense-wide activities, $9,831,646,000, of 
        which--
                    (A) $258,183,000 is authorized for the 
                activities of the Director, Test and 
                Evaluation; and
                    (B) $27,384,000 is authorized for the 
                Director of Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1998.--Of the amounts authorized to be 
appropriated by section 201, $3,935,390,000 shall be available 
for basic research and applied research projects.
    (b) Basic Research and Applied Research Defined.--For 
purposes of this section, the term ``basic research and applied 
research'' means work funded in program elements for defense 
research and development under Department of Defense category 
6.1 or 6.2.

SEC. 203. DUAL-USE SCIENCE AND TECHNOLOGY PROGRAM.

    (a) Funding 1998.--Of the amounts authorized to be 
appropriated by section 201, $75,000,000 is authorized for 
dual-use projects.
    (b) Goals.--(1) Subject to paragraph (3), it shall be the 
objective of the Secretary of each military department to 
obligate for dual-use projects in each fiscal year referred to 
in paragraph (2), out of the total amount authorized to be 
appropriated for such fiscal year for the applied research 
programs of the military department, the percent of such amount 
that is specified for that fiscal year in paragraph (2).
    (2) The objectives for fiscal years under paragraph (1) are 
as follows:
            (A) For fiscal year 1998, 5 percent.
            (B) For fiscal year 1999, 7 percent.
            (C) For fiscal year 2000, 10 percent.
            (D) For fiscal year 2001, 15 percent.
    (3) The Secretary of Defense may establish for a military 
department for a fiscal year an objective different from the 
objective set forth in paragraph (2) if the Secretary--
            (A) determines that compelling national security 
        considerations require the establishment of the 
        different objective; and
            (2) notifies Congress of the determination and the 
        reasons for the determination.
    (c) Designation of Official for Dual-Use Programs.--(1) The 
Secretary of Defense shall designate a senior official in the 
Office of the Secretary of Defense to carry out 
responsibilities for dual-use projects under this subsection. 
The designated official shall report directly to the Under 
Secretary of Defense for Acquisition and Technology.
    (2) The primary responsibilities of the designated official 
shall include developing policy and overseeing the 
establishment of, and adherence to, procedures for ensuring 
that dual-use projects are initiated and administered 
effectively and that applicable commercial technologies are 
integrated into current and future military systems.
    (3) In carrying out the responsibilities, the designated 
official shall ensure that--
            (A) dual-use projects are consistent with the joint 
        warfighting science and technology plan referred to in 
        section 270 of the National Defense Authorization Act 
        for Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 
        2501 note); and
            (B) the dual-use projects of the military 
        departments and defense agencies of the Department of 
        Defense are coordinated and avoid unnecessary 
        duplication.
    (d) Financial Commitment of Non-Federal Government 
Participants.--The total amount of funds provided by a military 
department for a dual-use project entered into by the Secretary 
of that department shall not exceed 50 percent of the total 
cost of the project. In the case of a dual-use project 
initiated after the date of the enactment of this Act, the 
Secretary may consider in-kind contributions by non-Federal 
participants only to the extent such contributions constitute 
50 percent or less of the share of the project costs by such 
participants.
    (e) Use of Competitive Procedures.--Funds obligated for a 
dual-use project may be counted toward meeting an objective 
under subsection (a) only if the funds are obligated for a 
contract, grant, cooperative agreement, or other transaction 
that was entered into through the use of competitive 
procedures.
    (f) Report.--(1) Not later than March 1 of each of 1998, 
1999, and 2000, the Secretary of Defense shall submit a report 
to the congressional defense committees on the progress made by 
the Department of Defense in meeting the objectives set forth 
in subsection (b) during the preceding fiscal year.
    (2) The report for a fiscal year shall contain, at a 
minimum, the following:
            (A) The aggregate value of all contracts, grants, 
        cooperative agreements, or other transactions entered 
        into during the fiscal year for which funding is 
        counted toward meeting an objective under this section, 
        expressed in relationship to the total amount 
        appropriated for the applied research programs in the 
        Department of Defense for that fiscal year.
            (B) For each military department, the value of all 
        contracts, grants, cooperative agreements, or other 
        transactions entered into during the fiscal year for 
        which funding is counted toward meeting an objective 
        under this section, expressed in relationship to the 
        total amount appropriated for the applied research 
        program of the military department for that fiscal 
        year.
            (C) A summary of the cost-sharing arrangements in 
        dual-use projects that were initiated during the fiscal 
        year and are counted toward reaching an objective under 
        this section.
            (D) A description of the regulations, directives, 
        or other procedures that have been issued by the 
        Secretary of Defense or the Secretary of a military 
        department to increase the percentage of the total 
        value of the dual-use projects undertaken to meet or 
        exceed an objective under this section.
            (E) Any recommended legislation to facilitate 
        achievement of objectives under this section.
    (g) Commercial Operations and Support Savings Initiative.--
(1) The Secretary of Defense shall establish a Commercial 
Operations and Support Savings Initiative (in this subsection 
referred to as the ``Initiative'') to develop commercial 
products and processes that the military departments can 
incorporate into operational military systems to reduce costs 
of operations and support.
    (2) Of the amounts authorized to be appropriated by section 
201, $50,000,000 is authorized for the Initiative.
    (3) Projects and participants in the Initiative shall be 
selected through the use of competitive procedures.
    (4) The budget submitted to Congress by the President for 
fiscal year 1999 and each fiscal year thereafter pursuant to 
section 1105(a) of title 31, United States Code, shall set 
forth separately the funding request for the Initiative.
    (h) Repeal of Superseded Authority.--Section 203 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 104-201; 110 Stat. 2451) is repealed.
    (i) Definitions.--In this section:
            (1) The term ``applied research program'' means a 
        program of a military department which is funded under 
        the 6.2 Research, Development, Test and Evaluation 
        account of that department.
            (2) The term ``dual-use project'' means a project 
        under a program of a military department or a defense 
        agency under which research or development of a dual-
        use technology is carried out and the costs of which 
        are shared by the Department of Defense and non-
        Government entities.

SEC. 204. REDUCTION IN AMOUNT FOR FEDERALLY FUNDED RESEARCH AND 
                    DEVELOPMENT CENTERS.

    The total of the amounts authorized to be appropriated in 
section 201 that are available for Federally Funded Research 
and Development Centers (other than amounts for capital 
equipment investment) is hereby reduced by $42,000,000.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Participation of Manufacturers.--Section 2525(c)(2) of 
title 10, United States Code, is amended to read as follows:
    ``(2) In order to promote increased dissemination and use 
of manufacturing technology throughout the national defense 
technology and industrial base, the Secretary shall seek, to 
the maximum extent practicable, the participation of 
manufacturers of manufacturing equipment in the projects under 
the program.''.
    (b) Five-Year Plan.--Section 2525 of such title is amended 
by adding at the end the following new subsection:
    ``(e) Five-Year Plan.--(1) The Secretary of Defense shall 
prepare a five-year plan for the program which establishes--
            ``(A) the overall manufacturing technology goals, 
        milestones, priorities, and investment strategy for the 
        program; and
            ``(B) for each of the five fiscal years covered by 
        the plan, the objectives of, and funding for the 
        program by, each military department and each Defense 
        Agency participating in the program.
    ``(2) The plan shall include an assessment of the 
effectiveness of the program.
    ``(3) The plan shall be updated annually and shall be 
included in the budget justification documents submitted in 
support of the budget of the Department of Defense for a fiscal 
year (as included in the budget of the President submitted to 
Congress under section 1105 of title 31).''.
    (c) Deadline for First Plan.--The Secretary of Defense 
shall prepare the first five-year plan required under section 
2525(e) of such title, as added by subsection (b), within 60 
days after the date of the enactment of this Act.

SEC. 212. REPORT ON OPERATIONAL FIELD ASSESSMENTS PROGRAM.

    (a) Finding.--Congress recognizes the potential value that 
the Department of Defense Operational Field Assessments 
program, which is managed by the Director of Operational Test 
and Evaluation, provides to the commanders of the Unified 
Combatant Commands with respect to assessment of the 
effectiveness of near-term operational concepts and critical 
operational issues in quick-response operational tests and 
evaluations.
    (b) Report.--Not later than March 30, 1998, the Secretary 
of Defense shall submit to the congressional defense committees 
a report on the Operational Field Assessments program.
    (c) Content of Report.--The report shall contain the 
following:
            (1) A review of the Operational Field Assessments 
        program which describes the goals and objectives of the 
        program, assessments by the program conducted as of the 
        date of the submission of the report, and the results 
        of those assessments.
            (2) A description of the current management and 
        support structure of the program within the Department 
        of Defense, including a description of how program 
        responsibilities are assigned within the Office of the 
        Secretary of Defense and a description of the roles of 
        the Joint Staff, the commanders of the Unified 
        Combatant Commands, and the military departments.
            (3) An analysis of and recommendations regarding 
        the management structure required within the Office of 
        the Secretary of Defense to ensure that the program is 
        responsive to the mission needs of the commanders of 
        the Unified Combatant Commands.
            (4) The funding plan for the program.
            (5) A description of future plans for the program 
        and funding requirements for those plans.
            (6) Recommendations regarding additional statutory 
        authority that may be required for the program.

SEC. 213. JOINT STRIKE FIGHTER PROGRAM.

    (a) Report.--Not later than February 15, 1998, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the options for the sequence in which 
the variants of the joint strike fighter are to be produced and 
fielded.
    (b) Content of Report.--The report shall contain the 
following:
            (1) A review of the plan for production under the 
        Joint Strike Fighter program that was used by the 
        Department of Defense for developing the funding 
        estimates for the fiscal year 1999 budget request for 
        the Department of Defense.
            (2) An estimate of the costs, and an analysis of 
        the costs and benefits, of producing the joint strike 
        fighter variants in a sequence that provides for 
        fielding of the naval variant of the aircraft first.
            (3) A comparison of the costs and benefits of the 
        various options for the sequence for fielding the 
        variants of the joint strike fighter that the Secretary 
        of Defense considers likely to be the options from 
        among which a sequence for fielding is selected, 
        including a discussion of the effects that selection of 
        each such option would have on the costs and rates of 
        production of the units of F/A-18E/F and F-22 aircraft 
        that are in production when the Joint Strike Fighter 
        Program proceeds into production.
            (4) A certification that the Joint Strike Fighter 
        Program contains sufficient funding to carry out an 
        alternate engine development program that includes 
        flight qualification of an alternate engine in a joint 
        strike fighter airframe.
    (c) Limitation on Use of Funds Pending Submission of 
Report.--Not more than 90 percent of the total amount 
authorized to be appropriated under this Act for the Joint 
Strike Fighter Program may be obligated until the date that is 
30 days after the date on which the congressional defense 
committees receive the report required under this section.
    (d) Fiscal Year 1998 Budget Defined.--In this section, the 
term ``fiscal year 1999 budget request for the Department of 
Defense'' means the budget estimates for the Department of 
Defense for fiscal year 1999 that were submitted to Congress by 
the Secretary of Defense in connection with the submission of 
the budget for fiscal year 1998 to Congress under section 1105 
of title 31, United States Code.

SEC. 214. KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY PROGRAM.

    Of the funds authorized to be appropriated under section 
201(4), $37,500,000 shall be available for the kinetic energy 
tactical anti-satellite technology program.

SEC. 215. MICRO-SATELLITE TECHNOLOGY DEVELOPMENT PROGRAM.

    (a) Establishment of Micro-Satellite Technology Development 
Program.--The Secretary of Defense shall restructure the 
Clementine 2 micro-satellite development program into a micro-
satellite technology development program that supports a range 
of space mission areas.
    (b) Report.--Not later than February 15, 1998, the 
Secretary of Defense shall submit to the congressional defense 
committees a report describing the structure and objectives of 
the micro-satellite technology development program established 
under subsection (a) and how the program can benefit existing 
or future space systems or architectures.

SEC. 216. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE PROGRAM.

    (a) Limitation on Total Cost of Advanced Concept Technology 
Demonstration.--The total amount obligated or expended for 
advanced concept technology demonstration under the High 
Altitude Endurance Unmanned Vehicle Program for fiscal year 
1998 through fiscal year 2003 may not exceed $476,826,000.
    (b) Limitation on Procurement.--The Secretary of Defense 
may not procure any high altitude endurance unmanned vehicles, 
other than the currently planned vehicles, until the completion 
of the testing identified in phase II of the test and 
demonstration plan for the advanced concept technology 
demonstration for the vehicles.
    (c) Limitation on Proceeding.--The High Altitude Endurance 
Unmanned Vehicle Program may not proceed beyond advanced 
concept technology demonstration until the Secretary of 
Defense--
            (1) provides to Congress a firm unit cost (referred 
        to in this section as the ``fly away cost'') for each 
        of the currently planned vehicles; and
            (2) certifies to Congress the military suitability 
        and the worth of each such vehicle.
    (d) GAO Review.--(1) The Comptroller General shall review 
the High Altitude Endurance Unmanned Vehicle Program for 
purposes of determining whether the average fly away cost for 
each vehicle is within the cost goal under the program of 
$10,000,000.
    (2) The Secretary of Defense and the prime contractors 
under the High Altitude Endurance Unmanned Vehicle Program 
shall provide the Comptroller General with such information on 
the program as the Comptroller considers necessary to make the 
determination under paragraph (1).
    (e) Currently Planned Vehicles.--In this section, the term 
``currently planned vehicles'' means the four Dark Star air 
vehicles and the five Global Hawk air vehicles that have been 
approved for procurement by the Secretary of Defense as of the 
date of the enactment of this Act.

SEC. 217. F-22 AIRCRAFT PROGRAM.

    (a) Limitation on Total Cost of Engineering and 
Manufacturing Development.--The total amount obligated or 
expended for engineering and manufacturing development under 
the F-22 aircraft program may not exceed $18,688,000,000.
    (b) Limitation on Total Cost of Production.--The total 
amount obligated or expended for the F-22 production program 
may not exceed $43,400,000,000.
    (c) Adjustment of Limitation Amounts.--The Secretary of the 
Air Force shall adjust the amounts of the limitations set forth 
in subsections (a) and (b) by the following amounts:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 
        1997.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, 
        State, or local laws enacted after September 30, 1997.
    (d) Annual GAO Review.--(1) Not later than March 15 of each 
year, the Comptroller General shall review the F-22 aircraft 
program and submit to Congress a report on the results of the 
review. The Comptroller General shall also submit to Congress 
for each report a certification regarding whether the 
Comptroller General has had access to sufficient information to 
make informed judgments on the matters covered by the report.
    (2) The report submitted on the program each year shall 
include the following:
            (A) The extent to which engineering and 
        manufacturing development under the program is meeting 
        the goals established for engineering and manufacturing 
        development under the program, including the 
        performance, cost, and schedule goals.
            (B) The status of modifications expected to have a 
        significant effect on cost or performance of F-22 
        aircraft.
            (C) The plan for engineering and manufacturing 
        development (leading to production) under the program 
        for the fiscal year that begins in the following year.
            (D) A conclusion regarding whether the plan 
        referred to in subparagraph (C) is consistent with the 
        limitation in subsection (a).
            (E) A conclusion regarding whether engineering and 
        manufacturing development (leading to production) under 
        the program is likely to be completed at a total cost 
        not in excess of the amount specified in subsection 
        (a).
    (3) The Comptroller General shall submit the first report 
under this subsection not later than March 15, 1998. No report 
is required under this subsection after engineering and 
manufacturing development under the program has been completed.
    (e) Requirement To Support Annual GAO Review.--The 
Secretary of Defense and the prime contractors under the F-22 
aircraft program shall provide the Comptroller General with 
such information on the program as the Comptroller General 
considers necessary to carry out the responsibilities under 
subsection (d).
    (f) Limitation on Obligation of Funds.--Of the total amount 
authorized to be appropriated for the F-22 aircraft program for 
a fiscal year, not more than 90 percent of the amount may be 
obligated until the Comptroller General submits to Congress--
            (1) the report required to be submitted in that 
        fiscal year under subsection (d); and
            (2) a certification regarding whether the 
        Comptroller General has had access to sufficient 
        information to make informed judgments on the matters 
        covered by the report.

             Subtitle C--Ballistic Missile Defense Programs

SEC. 231. NATIONAL MISSILE DEFENSE PROGRAM.

    (a) Program Structure.--To preserve the option of achieving 
an initial operational capability in fiscal year 2003, the 
Secretary of Defense shall ensure that the National Missile 
Defense Program is structured and programmed for funding so as 
to support a test, in fiscal year 1999, of an integrated 
national missile defense system that is representative of the 
national missile defense system architecture that could achieve 
initial operational capability in fiscal year 2003.
    (b) Elements of NMD System.--The national missile defense 
system architecture specified in subsection (a) shall consist 
of the following elements:
            (1) An interceptor system that optimizes defensive 
        coverage of the continental United States, Alaska, and 
        Hawaii against limited ballistic missile attack 
        (whether accidental, unauthorized, or deliberate).
            (2) Ground-based radars.
            (3) Space-based sensors.
            (4) Battle management, command, control, and 
        communications (BM/C3).
    (c) Plan for NMD System Development and Deployment.--Not 
later than February 15, 1998, the Secretary of Defense shall 
submit to the congressional defense committees a plan for the 
development and deployment of a national missile defense system 
that could achieve initial operational capability in fiscal 
year 2003. The plan shall include the following matters:
            (1) A detailed description of the system 
        architecture selected for development.
            (2) A discussion of the justification for the 
        selection of that particular architecture.
            (3) The Secretary's estimate of the amounts of the 
        appropriations that would be necessary for research, 
        development, test, evaluation, and for procurement for 
        each of fiscal years 1999 through 2003 in order to 
        achieve an initial operational capability of the system 
        architecture in fiscal year 2003.
            (4) For each activity necessary for the development 
        and deployment of the national missile defense system 
        architecture selected by the Secretary that would at 
        some point conflict with the terms of the ABM Treaty, 
        if any--
                    (A) a description of the activity;
                    (B) a description of the point at which the 
                activity would conflict with the terms of the 
                ABM Treaty;
                    (C) the legal analysis justifying the 
                Secretary's determination regarding the point 
                at which the activity would conflict with the 
                terms of the ABM Treaty; and
                    (D) an estimate of the time at which such 
                point would be reached in order to achieve a 
                test of an integrated missile defense system in 
                fiscal year 1999 and initial operational 
                capability of such a system in fiscal year 
                2003.
    (d) Funding for Fiscal Year 1998.--Of the funds authorized 
to be appropriated under section 201(4), $978,091,000 shall be 
available for the National Missile Defense Program.
    (e) ABM Treaty Defined.--In this section, the term ``ABM 
Treaty'' means the Treaty Between the United States of America 
and the Union of Soviet Socialist Republics on the Limitation 
of Anti-Ballistic Missile Systems, signed at Moscow on May 26, 
1972, and includes the Protocol to that treaty, signed at 
Moscow on July 3, 1974.

SEC. 232. BUDGETARY TREATMENT OF AMOUNTS FOR PROCUREMENT FOR BALLISTIC 
                    MISSILE DEFENSE PROGRAMS.

    (a) Requirement for Inclusion in Budget of BMDO.--(1) 
Chapter 9 of title 10, United States Code, is amended by 
inserting after section 222 the following new section:

``Sec. 224. Ballistic missile defense programs: display of amounts for 
                    procurement

    ``(a) Requirement.--Any amount in the budget submitted to 
Congress under section 1105 of title 31 for any fiscal year for 
procurement for a Department of Defense missile defense program 
described in subsection (b) shall be set forth under the 
account of the Department of Defense for Defense-wide 
procurement and, within that account, under the subaccount (or 
other budget activity level) for the Ballistic Missile Defense 
Organization.
    ``(b) Covered Programs.--Subsection (a) applies to the 
following missile defense programs of the Department of 
Defense:
            ``(1) The National Missile Defense program.
            ``(2) Any system that is part of the core theater 
        missile defense program.
            ``(3) Any other ballistic missile defense program 
        that enters production after the date of the enactment 
        of this section and for which research, development, 
        test, and evaluation was carried out by the Ballistic 
        Missile Defense Organization.
    ``(c) Core Theater Ballistic Missile Defense Program.--For 
purposes of this section, the core theater missile defense 
program consists of the systems specified in section 234 of the 
Ballistic Missile Defense Act of 1995 (10 U.S.C. 2431 note).''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 222 
the following new item:

``224. Ballistic missile defense programs: display of amounts for 
          procurement.''.

    (b) Fiscal Year 1998 Funds.--(1) The Secretary of Defense 
shall transfer to appropriations available to the Ballistic 
Missile Defense Organization for procurement for fiscal year 
1998 any amounts that are appropriated for procurement for that 
fiscal year for any of the Armed Forces by reason of the 
transference of certain programs to accounts of the Army, Navy, 
Air Force, and Marine Corps pursuant to Program Budget Decision 
224C3, signed by the Under Secretary of Defense (Comptroller) 
on December 23, 1996.
    (2) Any transfer pursuant to paragraph (1) shall not be 
counted for purposes of section 1001.

SEC. 233. COOPERATIVE BALLISTIC MISSILE DEFENSE PROGRAM.

    (a) Requirement for New Program Element.--The Secretary of 
Defense shall establish a program element for the Ballistic 
Missile Defense Organization, to be referred to as the 
``Cooperative Ballistic Missile Defense Program'', to support 
technical and analytical cooperative efforts between the United 
States and other nations that contribute to United States 
ballistic missile defense capabilities. Except as provided in 
subsection (b), all international cooperative ballistic missile 
defense programs of the Department of Defense shall be budgeted 
and administered through that program element.
    (b) Authority for Exceptions.--The Secretary of Defense may 
exclude from the program element established pursuant to 
subsection (a) any international cooperative ballistic missile 
defense program of the Department of Defense that after the 
date of the enactment of this Act is designated by the 
Secretary of Defense (pursuant to applicable Department of 
Defense acquisition regulations and policy) to be managed as a 
separate acquisition program.
    (c) Relationship to Other Program Elements.--The program 
element established pursuant to subsection (a) is in addition 
to the program elements for activities of the Ballistic Missile 
Defense Organization required under section 251 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 233; 10 U.S.C. 221 note).

SEC. 234. ANNUAL REPORT ON THREAT POSED TO THE UNITED STATES BY WEAPONS 
                    OF MASS DESTRUCTION, BALLISTIC MISSILES, AND CRUISE 
                    MISSILES.

    (a) Annual Report.--The Secretary of Defense shall submit 
to Congress by January 30 of each year a report on the threats 
posed to the United States and allies of the United States--
            (1) by weapons of mass destruction, ballistic 
        missiles, and cruise missiles; and
            (2) by the proliferation of weapons of mass 
        destruction, ballistic missiles, and cruise missiles.
    (b) Consultation.--Each report submitted under subsection 
(a) shall be prepared in consultation with the Director of 
Central Intelligence.
    (c) Matters To Be Included.--Each report submitted under 
subsection (a) shall include the following:
            (1) Identification of each foreign country and non-
        State organization that possesses weapons of mass 
        destruction, ballistic missiles, or cruise missiles, 
        and a descriptionof such weapons and missiles with 
respect to each such foreign country and non-State organization.
            (2) A description of the means by which any foreign 
        country and non-State organization that has achieved 
        capability with respect to weapons of mass destruction, 
        ballistic missiles, or cruise missiles has achieved 
        that capability, including a description of the 
        international network of foreign countries and private 
        entities that provide assistance to foreign countries 
        and non-State organizations in achieving that 
        capability.
            (3) An examination of the doctrines that guide the 
        use of weapons of mass destruction in each foreign 
        country that possesses such weapons.
            (4) An examination of the existence and 
        implementation of the control mechanisms that exist 
        with respect to nuclear weapons in each foreign country 
        that possesses such weapons.
            (5) Identification of each foreign country and non-
        State organization that seeks to acquire or develop 
        (indigenously or with foreign assistance) weapons of 
        mass destruction, ballistic missiles, or cruise 
        missiles, and a description of such weapons and 
        missiles with respect to each such foreign country and 
        non-State organization.
            (6) An assessment of various possible timelines for 
        the achievement by foreign countries and non-State 
        organizations of capability with respect to weapons of 
        mass destruction, ballistic missiles, and cruise 
        missiles, taking into account the probability of 
        whether the Russian Federation and the People's 
        Republic of China will comply with the Missile 
        Technology Control Regime, the potential availability 
        of assistance from foreign technical specialists, and 
        the potential for independent sales by foreign private 
        entities without authorization from their national 
        Governments.
            (7) For each foreign country or non-State 
        organization that has not achieved the capability to 
        target the United States or its territories with 
        weapons of mass destruction, ballistic missiles, or 
        cruise missiles as of the date of the enactment of this 
        Act, an estimate of how far in advance the United 
        States is likely to be warned before such foreign 
        country or non-State organization achieves that 
        capability.
            (8) For each foreign country or non-State 
        organization that has not achieved the capability to 
        target members of the United States Armed Forces 
        deployed abroad with weapons of mass destruction, 
        ballistic missiles, or cruise missiles as of the date 
        of the enactment of this Act, an estimate of how far in 
        advance the United States is likely to be warned before 
        such foreign country or non-State organization achieves 
        that capability.
    (d) Classification.--Each report under subsection (a) shall 
be submitted in classified and unclassified form.

SEC. 235. DIRECTOR OF BALLISTIC MISSILE DEFENSE ORGANIZATION.

    (a) In General.--Subchapter II of chapter 8 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 203. Director of Ballistic Missile Defense Organization

    ``If an officer of the armed forces on active duty is 
appointed to the position of Director of the Ballistic Missile 
Defense Organization, the position shall be treated as having 
been designated by the President as a position of importance 
and responsibility for purposes of section 601 of this title 
and shall carry the grade of lieutenant general or general or, 
in the case of an officer of the Navy, vice admiral or 
admiral.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such subchapter is amended by adding at the end 
the following new item:

``203. Director of Ballistic Missile Defense Organization.''.

SEC. 236. REPEAL OF REQUIRED DEPLOYMENT DATES FOR CORE THEATER MISSILE 
                    DEFENSE PROGRAMS.

    Section 234(a) of the Ballistic Missile Defense Act of 1995 
(subtitle C of title II of Public Law 104-106; 110 Stat. 229; 
10 U.S.C. 2431 note) is amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``, to be carried out so as to achieve the 
        specified capabilities'';
            (2) in paragraph (1), by striking out ``, with a 
        first unit equipped (FUE) during fiscal year 1998'';
            (3) in paragraph (2), by striking out ``Navy Lower 
        Tier (Area) system'' and all that follows through 
        ``fiscal year 1999'' and inserting in lieu thereof 
        ``Navy Area Defense system'';
            (4) in paragraph (3), by striking out ``, with a'' 
        and all that follows through ``fiscal year 2000''; and
            (5) in paragraph (4), by striking out ``Navy Upper 
        Tier'' and all that follows through ``fiscal year 
        2001'' and inserting in lieu thereof ``Navy Theater 
        Wide system''.

                       Subtitle D--Other Matters

SEC. 241. RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM 
                    ORGANIZATIONS.

    (a) National Ocean Research Leadership Council.--Section 
7902 of title 10, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking out paragraphs (11), (14), 
                (15), (16) and (17); and
                    (B) by redesignating paragraphs (12) and 
                (13) as paragraphs (11) and (12), respectively;
            (2) by striking out subsection (d); and
            (3) by redesignating subsections (e), (f), (g), 
        (h), and (i) as subsections (d), (e), (f), (g), and 
        (h), respectively.
    (b) Ocean Research Advisory Panel.--(1) The text of section 
7903 of such title is amended to read as follows:
    ``(a) Establishment.--The Council shall establish an Ocean 
Research Advisory Panel consisting of not less than 10 and not 
more than 18 members appointed by the chairman, including the 
following:
            ``(1) One member who will represent the National 
        Academy of Sciences.
            ``(2) One member who will represent the National 
        Academy of Engineering
            ``(3) One member who will represent the Institute 
        of Medicine.
            ``(4) Members selected from among individuals who 
        will represent the views of ocean industries, State 
        governments, academia, and such other views as the 
        chairman considers appropriate.
            ``(5) Members selected from among individuals 
        eminent in the fields of marine science or marine 
        policy, or related fields.
    ``(b) Responsibilities.--The Council shall assign the 
following responsibilities to the Advisory Panel:
            ``(1) To advise the Council on policies and 
        procedures to implement the National Oceanographic 
        Partnership Program.
            ``(2) To advise the Council on selection of 
        partnership projects and allocation of funds for 
        partnership projects for implementation under the 
        program.
            ``(3) To advise the Council on matters relating to 
        national oceanographic data requirements.
            ``(4) Any additional responsibilities that the 
        Council considers appropriate.
    ``(c) Funding.--The Secretary of the Navy annually shall 
make funds available to support the activities of the Advisory 
Panel.''.
    (2) Section 282(c) of the National Defense Authorization 
Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2473) 
is amended by striking out ``January 1, 1997'' and inserting in 
lieu thereof ``January 1, 1998''.
    (c) Conforming Amendments.--Section 282 of the National 
Defense Authorization Act for Fiscal Year 1997 is amended--
            (1) by striking out subsection (b); and
            (2) by redesignating subsections (c), (d), (e), and 
        (f) as subsections (b), (c), (d), and (e), 
        respectively.
    (d) Effective Date.--The amendments made by subsections (a) 
and (b) shall be effective as of September 23, 1996, as if 
included in section 282 of Public Law 104-201.

SEC. 242. MAINTENANCE AND REPAIR OF REAL PROPERTY AT AIR FORCE 
                    INSTALLATIONS.

    (a) In General.--Chapter 949 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 9782. Maintenance and repair of real property

    ``(a) Allocation of Funds.--The Secretary of the Air Force 
shall allocate funds authorized to be appropriated by a 
provision described in subsection (c) and a provision described 
in subsection (d) for maintenance and repair of real property 
at military installations of the Department of the Air Force 
without regard to whether the installation is supported with 
funds authorized by a provision described in subsection (c) or 
(d).
    ``(b) Mixing of Funds Prohibited on Individual Projects.--
The Secretary of the Air Force may not combine funds authorized 
to be appropriated by a provision described in subsection (c) 
and funds authorized to be appropriated by a provision 
described in subsection (d) for an individual project for 
maintenance and repair of real property at a military 
installation of the Department of the Air Force.
    ``(c) Research, Development, Test, and Evaluation Funds.--
The provision described in this subsection is a provision of a 
national defense authorization Act that authorizes funds to be 
appropriated for a fiscal year to the Air Force for research, 
development, test, and evaluation.
    ``(d) Operation and Maintenance Funds.--The provision 
described in this subsection is a provision of a national 
defense authorization Act that authorizes funds to be 
appropriated for a fiscal year to the Air Force for operation 
and maintenance.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``9782. Maintenance and repair of real property.''.

SEC. 243. EXPANSION OF ELIGIBILITY FOR THE DEFENSE EXPERIMENTAL PROGRAM 
                    TO STIMULATE COMPETITIVE RESEARCH.

    Section 257 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; U.S.C. 2358 note) is 
amended by adding at the end the following new subsection:
    ``(f) State Defined.--In this section, the term `State' 
means a State of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico, Guam, the Virgin Islands, 
American Samoa, and the Commonwealth of the Northern Mariana 
Islands.''.

SEC. 244. BIOASSAY TESTING OF VETERANS EXPOSED TO IONIZING RADIATION 
                    DURING MILITARY SERVICE.

    (a) Nuclear Test Personnel Program.--Of the amount provided 
in section 201(4), $300,000 shall be available for testing 
described in subsection (b) in support of the Nuclear Test 
Personnel Program conducted by the Defense Special Weapons 
Agency.
    (b) Covered Testing.--Subsection (a) applies to the third 
phase of bioassay testing of individuals who are radiation-
exposed veterans (as defined in section 1112(c)(3)(A) of title 
38, United States Code) who participated in radiation-risk 
activities (as defined in section 1112(c)(3)(B) of such title).

SEC. 245. SENSE OF CONGRESS REGARDING COMANCHE PROGRAM.

    It is the sense of Congress that the Department of Defense 
should--
            (1) evaluate technology transfer and acquisition 
        initiatives within the Army Comanche program that have 
        the potential to increase the efficiency or reduce the 
        risk of the Comanche program; and
            (2) include adequate funding for those initiatives 
        that the Department deems to be meritorious in the 
        future-years defense program (as submitted to Congress 
        under section 221 of title 10, United States Code).



                  TITLE III--OPERATION AND MAINTENANCE



               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Fisher House Trust Funds.
Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Operation of prepositioned fleet, National Training Center, 
          Fort Irwin, California.
Sec. 308. Refurbishment and installation of air search radar.
Sec. 309. Contracted training flight services.
Sec. 310. Procurement technical assistance programs.
Sec. 311. Operation of Fort Chaffee, Arkansas.

                  Subtitle B--Military Readiness Issues

Sec. 321. Monthly reports on allocation of funds within operation and 
          maintenance budget subactivities.
Sec. 322. Expansion of scope of quarterly readiness reports.
Sec. 323. Semiannual reports on transfers from high-priority readiness 
          appropriations.
Sec. 324. Annual report on aircraft inventory.
Sec. 325. Administrative actions adversely affecting military training 
          or other readiness activities.
Sec. 326. Common measurement of operations tempo and personnel tempo.
Sec. 327. Inclusion of Air Force depot maintenance as operation and 
          maintenance budget line items.
Sec. 328. Prohibition of implementation of tiered readiness system.
Sec. 329. Report on military readiness requirements of the Armed Forces.
Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
Sec. 331. Report on military exercises conducted under certain training 
          exercises programs
Sec. 332. Report on overseas deployments.

                  Subtitle C--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental 
          Research and Development Program Scientific Advisory Board.
Sec. 342. Amendments to authority to enter into agreements with other 
          agencies in support of environmental technology certification.
Sec. 343. Modifications of authority to store and dispose of nondefense 
          toxic and hazardous materials.
Sec. 344. Annual report on payments and activities in response to fines 
          and penalties assessed under environmental laws.
Sec. 345. Annual report on environmental activities of the Department of 
          Defense overseas.
Sec. 346. Review of existing environmental consequences of the presence 
          of the Armed Forces in Bermuda.
Sec. 347. Sense of Congress on deployment of United States Armed Forces 
          abroad for environmental preservation activities.
Sec. 348. Recovery and sharing of costs of environmental restoration at 
          Department of Defense sites.
Sec. 349. Partnerships for investment in innovative environmental 
          technologies.
Sec. 350. Procurement of recycled copier paper.
Sec. 351. Pilot program for the sale of air pollution emission reduction 
          incentives.

                   Subtitle D--Depot-Level Activities

Sec. 355. Definition of depot-level maintenance and repair.
Sec. 356. Core logistics capabilities of Department of Defense.
Sec. 357. Increase in percentage of depot-level maintenance and repair 
          that may be contracted for performance by non-government 
          personnel.
Sec. 358. Annual report on depot-level maintenance and repair.
Sec. 359. Requirement for use of competitive procedures in contracting 
          for performance of depot-level maintenance and repair 
          workloads formerly performed at closed or realigned military 
          installations.
Sec. 360. Clarification of prohibition on management of depot employees 
          by constraints on personnel levels.
Sec. 361. Centers of Industrial and Technical Excellence.
Sec. 362. Extension of authority for aviation depots and naval shipyards 
          to engage in defense-related production and services.
Sec. 363. Repeal of a conditional repeal of certain depot-level 
          maintenance and repair laws and a related reporting 
          requirement.
Sec. 364. Personnel reductions, Army depots participating in Army 
          Workload and Performance System.
Sec. 365. Report on allocation of core logistics activities among 
          Department of Defense facilities and private sector 
          facilities.
Sec. 366. Review of use of temporary duty assignments for ship repair 
          and maintenance.
Sec. 367. Sense of Congress regarding realignment of performance of 
          ground communication-electronic workload.

   Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 371. Reorganization of laws regarding commissaries and exchanges 
          and other morale, welfare, and recreation activities.
Sec. 372. Merchandise and pricing requirements for commissary stores.
Sec. 373. Limitation on noncompetitive procurement of brand-name 
          commercial items for resale in commissary stores.
Sec. 374. Treatment of revenues derived from commissary store 
          activities.
Sec. 375. Maintenance, repair, and renovation of Armed Forces Recreation 
          Center, Europe.
Sec. 376. Plan for use of public and private partnerships to benefit 
          morale, welfare, and recreation activities.

                        Subtitle F--Other Matters

Sec. 381. Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and Department of 
          Defense civilian employees.
Sec. 382. Center for Excellence in Disaster Management and Humanitarian 
          Assistance.
Sec. 383. Applicability of Federal printing requirements to Defense 
          Automated Printing Service.
Sec. 384. Study and notification requirements for conversion of 
          commercial and industrial type functions to contractor 
          performance.
Sec. 385. Collection and retention of cost information data on converted 
          services and functions.
Sec. 386. Financial assistance to support additional duties assigned to 
          Army National Guard.
Sec. 387. Competitive procurement of printing and duplication services.
Sec. 388. Continuation and expansion of demonstration program to 
          identify overpayments made to vendors.
Sec. 389. Development of standard forms regarding performance work 
          statement and request for proposal for conversion of certain 
          operational functions of military installations.
Sec. 390. Base operations support for military installations on Guam.
Sec. 391. Warranty claims recovery pilot program.
Sec. 392. Program to investigate fraud, waste, and abuse within 
          Department of Defense.
Sec. 393. Multitechnology automated reader card demonstration program.
Sec. 394. Reduction in overhead costs of Inventory Control Points.
Sec. 395. Inventory management.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for expenses, not 
otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For the Army, $17,174,589,000.
            (2) For the Navy, $21,947,656,000.
            (3) For the Marine Corps, $2,424,645,000.
            (4) For the Air Force, $19,172,985,000.
            (5) For Defense-wide activities, $10,242,607,000.
            (6) For the Army Reserve, $1,207,981,000.
            (7) For the Naval Reserve, $846,711,000.
            (8) For the Marine Corps Reserve, $116,366,000.
            (9) For the Air Force Reserve, $1,631,200,000.
            (10) For the Army National Guard, $2,311,432,000.
            (11) For the Air National Guard, $2,999,782,000.
            (12) For the Defense Inspector General, 
        $136,580,000.
            (13) For the United States Court of Appeals for the 
        Armed Forces, $6,952,000.
            (14) For Environmental Restoration, Army, 
        $375,337,000.
            (15) For Environmental Restoration, Navy, 
        $275,500,000.
            (16) For Environmental Restoration, Air Force, 
        $376,900,000.
            (17) For Environmental Restoration, Defense-wide, 
        $26,900,000.
            (18) For Environmental Restoration, Formerly Used 
        Defense Sites, $202,300,000.
            (19) For Overseas Humanitarian, Disaster, and Civic 
        Aid programs, $47,130,000.
            (20) For Drug Interdiction and Counter-drug 
        Activities, Defense-wide, $666,882,000.
            (21) For the Kaho'olawe Island Conveyance, 
        Remediation, and Environmental Restoration Trust Fund, 
        $10,000,000.
            (22) For Medical Programs, Defense, $9,957,782,000.
            (23) For Cooperative Threat Reduction programs, 
        $382,200,000.
            (24) For Overseas Contingency Operations Transfer 
        Fund, $1,253,900,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for providing capital 
for working capital and revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, 
        $971,952,000.
            (2) For the National Defense Sealift Fund, 
        $1,059,948,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal 
year 1998 from the Armed Forces Retirement Home Trust Fund the 
sum of $79,977,000 for the operation of the Armed Forces 
Retirement Home, including the United States Soldiers' and 
Airmen's Home and the Naval Home.

SEC. 304. FISHER HOUSE TRUST FUNDS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998, out of funds in Fisher House Trust Funds not 
otherwise appropriated, for the operation of Fisher houses 
described in section 2221(d) of title 10, United States Code, 
as follows:
            (1) From the Fisher House Trust Fund, Department of 
        the Army, $250,000 for Fisher houses that are located 
        in proximity to medical treatment facilities of the 
        Army.
            (2) From the Fisher House Trust Fund, Department of 
        the Navy, $150,000 for Fisher houses that are located 
        in proximity to medical treatment facilities of the 
        Navy.

SEC. 305. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.

    (a) Transfer Authority.--To the extent provided in 
appropriations Acts, not more than $150,000,000 is authorized 
to be transferred from the National Defense Stockpile 
Transaction Fund to operation and maintenance accounts for 
fiscal year 1998 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.
    (b) Treatment of Transfers.--Amounts transferred under this 
section--
            (1) shall be merged with, and be available for the 
        same purposes and the same period as, the amounts in 
        the accounts to which transferred; and
            (2) may not be expended for an item that has been 
        denied authorization of appropriations by Congress.
    (c) Relationship to Other Transfer Authority.--The transfer 
authority provided in this section is in addition to the 
transfer authority provided in section 1001.

SEC. 306. REFURBISHMENT OF M1-A1 TANKS.

    Of the amount authorized to be appropriated pursuant to 
section 301(1) for operation and maintenance for the Army, 
$35,000,000 shall be available only for refurbishment of M1-A1 
tanks under the AIM-XXI program if the Secretary of Defense 
determines that the cost effectiveness of the pilot AIM-XXI 
program is validated through user trials conducted at the 
National Training Center, Fort Irwin, California.

SEC. 307. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING CENTER, 
                    FORT IRWIN, CALIFORNIA.

    Of the amount authorized to be appropriated pursuant to 
section 301(1) for operation and maintenance for the Army, 
$60,200,000 shall be available only to pay costs associated 
with the operation of the prepositioned fleet of equipment 
during training rotations at the National Training Center, Fort 
Irwin, California.

SEC. 308. REFURBISHMENT AND INSTALLATION OF AIR SEARCH RADAR.

    Of the amount authorized to be appropriated pursuant to 
section 301(2) for operation and maintenance for the Navy, 
$6,000,000 may be available for the refurbishment and 
installation of the AN/SPS-48E air search radar for the Ship 
Self Defense System at the Integrated Ship Defense Systems 
Engineering Center, Naval Surface Warfare Center, Wallops 
Islands, Virginia.

SEC. 309. CONTRACTED TRAINING FLIGHT SERVICES.

    Of the amount authorized to be appropriated pursuant to 
section 301(4) for operation and maintenance for the Air Force, 
$12,000,000 may be used for contracted training flight 
services.

SEC. 310. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated 
under section 301(5), $12,000,000 shall be available for 
carrying out the provisions of chapter 142 of title 10, United 
States Code.
    (b) Specific Programs.--Of the amounts made available 
pursuant to subsection (a), $600,000 shall be available for 
fiscal year 1998 for the purpose of carrying out programs 
sponsored by eligible entities referred to in subparagraph (D) 
of section 2411(1) of title 10, United States Code, that 
provide procurement technical assistance in distressed areas 
referred toin subparagraph (B) of section 2411(2) of such 
title. If there is an insufficient number of satisfactory proposals for 
cooperative agreements in such distressed areas to allow effective use 
of the funds made available in accordance with this subsection in such 
areas, the funds shall be allocated among the Defense Contract 
Administration Services regions in accordance with section 2415 of such 
title.

SEC. 311. OPERATION OF FORT CHAFFEE, ARKANSAS.

    Of the amount authorized to be appropriated pursuant to 
section 301(10) for operation and maintenance for the Army 
National Guard, $6,854,000 may be available for the operation 
of Fort Chaffee, Arkansas.

                 Subtitle B--Military Readiness Issues

SEC. 321. MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN OPERATION AND 
                    MAINTENANCE BUDGET SUBACTIVITIES.

    (a) In General.--(1) Chapter 9 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 228. Monthly reports on allocation of funds within operation and 
                    maintenance budget subactivities

    ``(a) Monthly Report.--The Secretary of Defense shall 
submit to Congress a monthly report on the allocation of 
appropriations to O&M budget activities and to the 
subactivities of those budget activities. Each such report 
shall be submitted not later than 60 days after the end of the 
month to which the report pertains.
    ``(b) Matters To Be Included.--Each such report shall set 
forth the following for each subactivity of the O&M budget 
activities:
            ``(1) The amount of budget authority appropriated 
        for that subactivity in the most recent regular 
        Department of Defense Appropriations Act.
            ``(2) The amount of budget authority actually made 
        available for that subactivity, taking into 
        consideration supplemental appropriations, rescissions, 
        and other adjustments required by law or made pursuant 
        to law.
            ``(3) The amount programmed to be expended from 
        such subactivity.
    ``(c) Identification of Certain Fluctuations.--(1) If, in 
the report under this section for a month of a fiscal year 
after the first month of that fiscal year, an amount shown 
under subsection (b) for a subactivity is different by more 
than $15,000,000 from the corresponding amount for that 
subactivity in the report for the first month of that fiscal 
year, the Secretary shall include in the report notice of that 
difference.
    ``(2) If, in the report under this section for a month of a 
fiscal year after a month for which the report under this 
section includes a notice under paragraph (1), an amount shown 
under subsection (b) for a subactivity is different by more 
than $15,000,000 from the corresponding amount for that 
subactivity in the most recent report that includes a notice 
under paragraph (1) or this paragraph, the Secretary shall 
include in the report notice of that difference.
    ``(d) Report on Fluctuations.--If a report under this 
section includes a notice under subsection (c), the Secretary 
shall include in the report with each such notice the 
following:
            ``(1) The reasons for the reallocations of funds 
        resulting in the inclusion of that notice in the 
        report.
            ``(2) Each budget subactivity involved in those 
        reallocations.
            ``(3) The effect of those reallocations on the 
        operation and maintenance activities funded through the 
        subactivity with respect to which the notice is 
        included in the report.
    ``(e) O&M Budget Activity Defined.--For purposes of this 
section, the term `O&M budget activity' means a budget activity 
within an operation and maintenance appropriation of the 
Department of Defense for a fiscal year.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``228. Monthly reports on allocation of funds within operation and 
          maintenance budget subactivities.''.

    (b) Effective Date.--The first report under section 228 of 
title 10, United States Code, as added by subsection (a), shall 
be for the month of December 1997.

SEC. 322. EXPANSION OF SCOPE OF QUARTERLY READINESS REPORTS.

    (a) Expanded Reports Required.--(1) Section 482 of title 
10, United States Code, is amended to read as follows:

``Sec. 482. Quarterly reports: personnel and unit readiness

    ``(a) Quarterly Reports Required.--Not later than 30 days 
after the end of each calendar-year quarter, the Secretary of 
Defense shall submit to Congress a report regarding military 
readiness. The report for a quarter shall contain the 
information required by subsections (b), (d), and (e).
    ``(b) Readiness Problems and Remedial Actions.--Each report 
shall specifically describe--
            ``(1) each readiness problem and deficiency 
        identified using the assessments considered under 
        subsection (c);
            ``(2) planned remedial actions; and
            ``(3) the key indicators and other relevant 
        information related to each identified problem and 
        deficiency.
    ``(c) Consideration of Readiness Assessments.--The 
information required under subsection (b) to be included in the 
report for a quarter shall be based on readiness assessments 
that are provided during that quarter--
            ``(1) to any council, committee, or other body of 
        the Department of Defense--
                    ``(A) that has responsibility for readiness 
                oversight; and
                    ``(B) whose membership includes at least 
                one civilian officer in the Office of the 
                Secretary of Defense at the level of Assistant 
                Secretary of Defense or higher;
            ``(2) by senior civilian and military officers of 
        the military departments and the commanders of the 
        unified and specified commands; and
            ``(3) as part of any regularly established process 
        of periodic readiness reviews for the Department of 
        Defense as a whole.
    ``(d) Comprehensive Readiness Indicators for Active 
Components.--Each report shall also include information 
regarding each of the active components of the armed forces 
(and an evaluation of such information) with respect to each of 
the following readiness indicators:
            ``(1) Personnel strength.--
                    ``(A) Personnel status, including the 
                extent to which members of the armed forces are 
                serving in positions outside of their military 
                occupational specialty, serving in grades other 
                than the grades for which they are qualified, 
                or both.
                    ``(B) Historical data and projected trends 
                in personnel strength and status.
            ``(2) Personnel turbulence.--
                    ``(A) Recruit quality.
                    ``(B) Borrowed manpower.
                    ``(C) Personnel stability.
            ``(3) Other personnel matters.--
                    ``(A) Personnel morale.
                    ``(B) Recruiting status.
            ``(4) Training.--
                    ``(A) Training unit readiness and 
                proficiency.
                    ``(B) Operations tempo.
                    ``(C) Training funding.
                    ``(D) Training commitments and deployments.
            ``(5) Logistics--equipment fill.--
                    ``(A) Deployed equipment.
                    ``(B) Equipment availability.
                    ``(C) Equipment that is not mission 
                capable.
                    ``(D) Age of equipment.
                    ``(E) Condition of nonpacing items.
            ``(6) Logistics--equipment maintenance.--
                    ``(A) Maintenance backlog.
            ``(7) Logistics--supply.--
                    ``(A) Availability of ordnance and spares.
                    ``(B) Status of prepositioned equipment.
    ``(e) Unit Readiness Indicators.--Each report shall also 
include information regarding the readiness of each active 
component unit of the armed forces at the battalion, squadron, 
or an equivalent level (or a higher level) that received a 
readiness rating of C-3 (or below) for any month of the 
calendar-year quarter covered by the report. With respect to 
each such unit, the report shall separately provide the 
following information:
            ``(1) The unit designation and level of 
        organization.
            ``(2) The overall readiness rating for the unit for 
        the quarter and each month of the quarter.
            ``(3) The resource area or areas (personnel, 
        equipment and supplies on hand, equipment condition, or 
        training) that adversely affected the unit's readiness 
        rating for the quarter.
            ``(4) The reasons why the unit received a readiness 
        rating of C-3 (or below).
    ``(f) Classification of Reports.--A report under this 
section shall be submitted in unclassified form. To the extent 
the Secretary of Defense determines necessary, the report may 
also be submitted in classified form.''.
    (2) The item relating to section 482 in the table of 
sections at the beginning of chapter 23 of such title is 
amended to read as follows:

``482. Quarterly reports: personnel and unit readiness.''.

    (b) Implementation Plan To Examine Readiness Indicators.--
Not later than January 15, 1998, the Secretary of Defense shall 
submit to the congressional defense committees a plan--
            (1) specifying the manner in which the Secretary 
        will implement the additional reporting requirement of 
        subsection (d) of section 482 of title 10, United 
        States Code, as added by this section; and
            (2) specifying the criteria proposed to be used to 
        evaluate the readiness indicators identified in such 
        subsection (d).
    (c) Limitation Pending Receipt of Implementation Plan.--Of 
the amount available for fiscal year 1998 for operation and 
support activities of the Office of the Secretary of Defense, 
10 percent may not be obligated until after the date on which 
the implementation plan required by subsection (b) is 
submitted.
    (d) Transition to Complete Report.--Until the report under 
section 482 of title 10, United States Code, as amended by 
subsection (a), for the third quarter of 1998 is submitted, the 
Secretary of Defense may omit the information required by 
subsection (d) of such section if the Secretary determines that 
it is impracticable to comply with such subsection with regard 
to the preceding reports.

SEC. 323. SEMIANNUAL REPORTS ON TRANSFERS FROM HIGH-PRIORITY READINESS 
                    APPROPRIATIONS.

    (a) Reports Required.--Chapter 23 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 483. Reports on transfers from high-priority readiness 
                    appropriations

    ``(a) Annual Reports.--Not later than the date on which the 
President submits the budget for a fiscal year to Congress 
pursuant to section 1105 of title 31, the Secretary of Defense 
shall submit to the Committee on Armed Services and the 
Committee on Appropriations of the Senate and the Committee on 
National Security and the Committee on Appropriations of the 
House of Representatives a report on transfers during the 
preceding fiscal year from funds available for each covered 
budget activity.
    ``(b) Midyear Reports.--Not later than June 1 of each 
fiscal year, the Secretary of Defense shall submit to the 
congressional committees specified in subsection (a) a report 
ontransfers, during the first six months of that fiscal year, 
from funds available for each covered budget activity.
    ``(c) Matters To Be Included.--In each report under 
subsection (a) or (b), the Secretary of Defense shall include 
for each covered budget activity the following:
            ``(1) A statement, for the period covered by the 
        report, of--
                    ``(A) the total amount of transfers into 
                funds available for that activity;
                    ``(B) the total amount of transfers from 
                funds available for that activity; and
                    ``(C) the net amount of transfers into, or 
                out of, funds available for that activity.
            ``(2) A detailed explanation of the transfers into, 
        and out of, funds available for that activity during 
        the period covered by the report.
    ``(d) Covered Budget Activity Defined.--In this section, 
the term `covered budget activity' means each of the following:
            ``(1) The budget activity groups (known as 
        `subactivities') within the Operating Forces budget 
        activity of the annual Operation and Maintenance, Army, 
        appropriation that are designated as follows:
                    ``(A) All subactivities under the category 
                of Land Forces.
                    ``(B) Land Forces Depot Maintenance.
                    ``(C) Base Support.
                    ``(D) Maintenance of Real Property.
            ``(2) The Air Operations budget activity groups 
        (known as `subactivities') within the Operating Forces 
        budget activity of the annual Operation and 
        Maintenance, Navy, appropriation that are designated as 
        follows:
                    ``(A) Mission and Other Flight Operations.
                    ``(B) Fleet Air Training.
                    ``(C) Aircraft Depot Maintenance.
                    ``(D) Base Support.
                    ``(E) Maintenance of Real Property.
            ``(3) The Ship Operations budget activity groups 
        (known as `subactivities') within the Operating Forces 
        budget activity of the annual Operation and 
        Maintenance, Navy, appropriation that are designated as 
        follows:
                    ``(A) Mission and Other Ship Operations.
                    ``(B) Ship Operational Support and 
                Training.
                    ``(C) Ship Depot Maintenance.
                    ``(D) Base Support.
                    ``(E) Maintenance of Real Property.
            ``(4) The Expeditionary Forces budget activity 
        groups (known as `subactivities') within the Operating 
        Forces budget activity of the annual Operation and 
        Maintenance, Marine Corps, appropriation that are 
        designated as follows:
                    ``(A) Operational Forces.
                    ``(B) Depot Maintenance.
                    ``(C) Base Support.
                    ``(D) Maintenance of Real Property.
            ``(5) The Air Operations and Combat Related 
        Operations budget activity groups (known as 
        `subactivities') within the Operating Forces budget 
        activity of the annual Operation and Maintenance, Air 
        Force, appropriation that are designated as follows:
                    ``(A) Primary Combat Forces.
                    ``(B) Primary Combat Weapons.
                    ``(C) Air Operations Training.
                    ``(D) Depot Maintenance.
                    ``(E) Base Support.
                    ``(F) Maintenance of Real Property.
            ``(6) The Mobility Operations budget activity group 
        (known as a `subactivity') within the Mobilization 
        budget activity of the annual Operation and 
        Maintenance, Air Force, appropriation that is 
        designated as Airlift Operations.
    ``(e) Termination.--The requirements specified in 
subsections (a) and (b) shall terminate upon the submission of 
the annual report under subsection (a) covering fiscal year 
2000.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``483. Reports on transfers from high-priority readiness 
          appropriations.''.

SEC. 324. ANNUAL REPORT ON AIRCRAFT INVENTORY.

    (a) Annual Report Required.--(1) Chapter 23 of title 10, 
United States Code, is amended by inserting after section 483, 
as added by section 323, the following new section:

``Sec. 484. Annual report on aircraft inventory

    ``(a) Annual Report.--The Under Secretary of Defense 
(Comptroller) shall submit to Congress each year a report on 
the aircraft in the inventory of the Department of Defense. The 
Under Secretary shall submit the report when the President 
submits the budget to Congress under section 1105(a) of title 
31.
    ``(b) Content.--The report shall set forth, in accordance 
with subsection (c), the following information:
            ``(1) The total number of aircraft in the 
        inventory.
            ``(2) The total number of the aircraft in the 
        inventory that are active, stated in the following 
        categories (with appropriate subcategories for mission 
        aircraft, training aircraft, dedicated test aircraft, 
        and other aircraft):
                    ``(A) Primary aircraft.
                    ``(B) Backup aircraft.
                    ``(C) Attrition and reconstitution reserve 
                aircraft.
            ``(3) The total number of the aircraft in the 
        inventory that are inactive, stated in the following 
        categories:
                    ``(A) Bailment aircraft.
                    ``(B) Drone aircraft.
                    ``(C) Aircraft for sale or other transfer 
                to foreign governments.
                    ``(D) Leased or loaned aircraft.
                    ``(E) Aircraft for maintenance training.
                    ``(F) Aircraft for reclamation.
                    ``(G) Aircraft in storage.
            ``(4) The aircraft inventory requirements approved 
        by the Joint Chiefs of Staff.
    ``(c) Display of Information.--The report shall specify the 
information required by subsection (b) separately for the 
active component of each armed force and for each reserve 
component of each armed force and, within the information set 
forth for each such component, shall specify the information 
separately for each type, model, and series of aircraft 
provided for in the future-years defense program submitted to 
Congress.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 483, 
as added by section 323, the following new item:

``484. Report on aircraft inventory.''.

    (b) Special Submission Date for First Report.--The Under 
Secretary of Defense (Comptroller) shall submit the first 
report required under section 484 of title 10, United States 
Code (as added by subsection (a)), not later than January 30, 
1998.
    (c) Modification of Budget Data Exhibits.--The Under 
Secretary of Defense (Comptroller) shall ensure that aircraft 
budget data exhibits of the Department of Defense that are 
submitted to Congress display total numbers of active aircraft 
where numbers of primary aircraft or primary authorized 
aircraft are displayed in those exhibits.

SEC. 325. ADMINISTRATIVE ACTIONS ADVERSELY AFFECTING MILITARY TRAINING 
                    OR OTHER READINESS ACTIVITIES.

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

``Sec. 2014. Administrative actions adversely affecting military 
                    training or other readiness activities

    ``(a) Congressional Notification.--Whenever an official of 
an Executive agency takes or proposes to take an administrative 
action that, as determined by the Secretary of Defensein 
consultation with the Chairman of the Joint Chiefs of Staff, affects 
training or any other readiness activity in a manner that has or would 
have a significant adverse effect on the military readiness of any of 
the armed forces or a critical component thereof, the Secretary shall 
submit a written notification of the action and each significant 
adverse effect to the head of the Executive agency taking or proposing 
to take the administrative action. At the same time, the Secretary 
shall transmit a copy of the notification to the President, the 
Committee on Armed Services of the Senate, and the Committee on 
National Security of the House of Representatives.
    ``(b) Notification To Be Prompt.--(1) Subject to paragraph 
(2), the Secretary shall submit a written notification of an 
administrative action or proposed administrative action 
required by subsection (a) as soon as possible after the 
Secretary becomes aware of the action or proposed action.
    ``(2) The Secretary shall prescribe policies and procedures 
to ensure that the Secretary receives information on an 
administrative action or proposed administrative action 
described in subsection (a) promptly after Department of 
Defense personnel receive notice of such an action or proposed 
action.
    ``(c) Consultation Between Secretary and Head of Executive 
Agency.--Upon notification with respect to an administrative 
action or proposed administrative action under subsection (a), 
the head of the Executive agency concerned shall--
            ``(1) respond promptly to the Secretary; and
            ``(2) consistent with the urgency of the training 
        or readiness activity involved and the provisions of 
        law under which the administrative action or proposed 
        administrative action is being taken, seek to reach an 
        agreement with the Secretary on immediate actions to 
        attain the objective of the administrative action or 
        proposed administrative action in a manner which 
        eliminates or mitigates the adverse effects of the 
        administrative action or proposed administrative action 
        upon the training or readiness activity.
    ``(d) Moratorium.--(1) Subject to paragraph (2), upon 
notification with respect to an administrative action or 
proposed administrative action under subsection (a), the 
administrative action or proposed administrative action shall 
cease to be effective with respect to the Department of Defense 
until the earlier of--
            ``(A) the end of the five-day period beginning on 
        the date of the notification; or
            ``(B) the date of an agreement between the head of 
        the Executive agency concerned and the Secretary as a 
        result of the consultations under subsection (c).
    ``(2) Paragraph (1) shall not apply with respect to an 
administrative action or proposed administrative action if the 
head of the Executive agency concerned determines that the 
delay in enforcement of the administrative action or proposed 
administrative action will pose an actual threat of an imminent 
and substantial endangerment to public health or the 
environment.
    ``(e) Effect of Lack of Agreement.--(1) If the head of an 
Executive agency and the Secretary do not enter into an 
agreement under subsection (c)(2), the Secretary shall submit a 
written notification to the President who shall take final 
action on the matter.
    ``(2) Not later than 30 days after the date on which the 
President takes final action on a matter under paragraph (1), 
the President shall submit to the committees referred to in 
subsection (a) a notification of the action.
    ``(f) Limitation on Delegation of Authority.--The head of 
an Executive agency may not delegate any responsibility under 
this section.
    ``(g) Definition.--In this section, the term `Executive 
agency' has the meaning given such term in section 105 of title 
5, except that the term does not include the General Accounting 
Office.''.
    (b) Clerical Amendment.--The table of sections of the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2014. Administrative actions adversely affecting military training or 
          other readiness activities.''.

SEC. 326. COMMON MEASUREMENT OF OPERATIONS TEMPO AND PERSONNEL TEMPO.

    (a) Means for Measurement.--The Chairman of the Joint 
Chiefs of Staff shall, to the maximum extent practicable, 
develop (1) a common means of measuring the operations tempo 
(OPTEMPO) of each of the Armed Forces, and (2) a common means 
of measuring the personnel tempo (PERSTEMPO) of each of the 
Armed Forces. The Chairman shall consult with the other members 
of the Joint Chiefs of Staff in developing those common means 
of measurement.
    (b) Perstempo Measurement.--The measurement of personnel 
tempo developed by the Chairman shall include a means of 
identifying the rate of deployment for individual members of 
the Armed Forces in addition to the rate of deployment for 
units.

SEC. 327. INCLUSION OF AIR FORCE DEPOT MAINTENANCE AS OPERATION AND 
                    MAINTENANCE BUDGET LINE ITEMS.

    For fiscal year 1999 and each fiscal year thereafter, Air 
Force depot-level maintenance of materiel shall be displayed as 
one or more separate line items under each subactivity within 
the authorization request for operation and maintenance, Air 
Force, in the proposed budget for that fiscal year submitted to 
Congress pursuant to section 1105 of title 31, United States 
Code.

SEC. 328. PROHIBITION OF IMPLEMENTATION OF TIERED READINESS SYSTEM.

    (a) Prohibition.--The Secretary of a military department 
may not implement, or be required to implement, a new readiness 
system for units of the Armed Forces (as outlined in sections 
329 and 330), under which a military unit would be categorized 
into one of several categories (known as ``tiers'') according 
to the likelihood that the unit will be required to respond to 
a military conflict and the time in which the unit will be 
required to respond, if that system would have the effect of 
changing the methods used as of October 1, 1996, by the Armed 
Forces under the jurisdiction of that Secretary for determining 
the priorities for allocating to such military units funding, 
personnel, equipment, equipment maintenance, and training 
resources, and the associated levels of readiness of those 
units that result from those priorities.
    (b) Report to Congress Requesting Waiver.--If the Secretary 
of Defense determines, following the review required by 
sections 329 and 330 (or any similar review), that 
implementation for one or more of the Armed Forces of a tiered 
readiness system that is prohibited by subsection (a) would be 
in the national security interests of the United States, the 
Secretary shall submit to Congress a report setting forth that 
determination, together with the rationale for that 
determination, and a request for the enactment of legislation 
to allow implementation of such a system.
    (c) Rule of Construction.--Nothing in subsection (a) is 
intended to preclude the Secretary of Defense from taking 
necessary actions to maintain the combat preparedness of the 
active and reserve components of the Armed Forces.

SEC. 329. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED 
                    FORCES.

    (a) Requirement for Report.--Not later than January 31, 
1998, the Chairman of the Joint Chiefs of Staff shall submit to 
the congressional defense committees a report on the military 
readiness requirements of the active and reserve components of 
the Armed Forces (including combat units, combat support units, 
and combat service support units). The report shall assess such 
requirements under a tiered readiness and response system that 
categorizes a given unit according to the likelihood that it 
will be required to respond to a military conflict and the time 
within which it will be required to respond.
    (b) Preparation by JCS and Commanders of Unified 
Commands.--The report required by subsection (a) shall be 
prepared jointly by the Chairman of the Joint Chiefs of Staff, 
the Chief of Staff of the Army, the Chief of Naval Operations, 
the Chief of Staff of the Air Force, the Commandant of the 
Marine Corps, the commander of the Special Operations Command, 
and the commanders of the other unified commands.
    (c) Assessment Scenario.--The report shall assess readiness 
requirements in a scenario that is based on the following 
assumptions:
            (1) That the Armed Forces of the United States must 
        be capable of--
                    (A) fighting and winning, in concert with 
                allies, two major theater wars nearly 
                simultaneously; and
                    (B) deterring or defeating a strategic 
                attack on the United States.
            (2) That the forces available for deployment are 
        the forces included in the force structure recommended 
        in the Quadrennial Defense Review, including all other 
        planned force enhancements.
    (d) Assessment Elements.--(1) The report shall identify, by 
unit type, all major units of the active and reserve components 
of the Armed Forces and assess the readiness requirements of 
the units. Each identified unit shall be categorized within one 
of the following classifications:
            (A) Forward-deployed and crisis response forces, or 
        ``Tier I'' forces, that possess limited internal 
        sustainment capability and do not require immediate 
        access to regional air bases or ports or overflight 
        rights, including the following:
                    (i) Force units that are deployed in 
                rotation at sea or on land outside the United 
                States.
                    (ii) Combat-ready crises response forces 
                that are capable of mobilizing and deploying 
                within 10 days after receipt of orders.
                    (iii) Forces that are supported by 
                prepositioning equipment afloat or are capable 
                of being inserted into a theater upon the 
                capture of a port or airfield by forcible entry 
                forces.
            (B) Combat-ready follow-on forces, or ``Tier II'' 
        forces, that can be mobilized and deployed to a theater 
        within approximately 60 days after receipt of orders.
            (C) Combat-ready conflict resolution forces, or 
        ``Tier III'' forces, that can be mobilized and deployed 
        to a theater within approximately 180 days after 
        receipt of orders.
            (D) All other active and reserve component force 
        units which are not categorized within a classification 
        described in subparagraph (A), (B), or (C).
    (2) For the purposes of paragraph (1), the following units 
are major units:
            (A) In the case of the Army or Marine Corps, a 
        brigade and a battalion.
            (B) In the case of the Navy, a squadron of 
        aircraft, a ship, and a squadron of ships.
            (C) In the case of the Air Force, a squadron of 
        aircraft.
    (e) Projection of Savings for Use for Modernization.--The 
report shall include a projection for fiscal years 1998 through 
2003 of the amounts of the savings in operation and maintenance 
funding that--
            (1) could be derived by each of the Armed Forces by 
        placing as many units as is practicable into the lower 
        readiness categories among the tiers; and
            (2) could be made available for force 
        modernization.
    (f) Form of Report.--The report under this section shall be 
submitted in unclassified form, but may contain a classified 
annex.
    (g) Planned Force Enhancement Defined.--In this section, 
the term ``planned force enhancement'', with respect to the 
force structure recommended in the Quadrennial Defense Review, 
means any future improvement in the capability of the force 
(including current strategic and future improvement in 
strategic lift capability) that is assumed in the development 
of the recommendation for the force structure set forth in the 
Quadrennial Defense Review.

SEC. 330. ASSESSMENT OF CYCLICAL READINESS POSTURE OF THE ARMED FORCES.

    (a) Requirement.--(1) Not later than 120 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report on the readiness posture of 
the Armed Forces described in subsection (b).
    (2) The Secretary shall prepare the report required under 
paragraph (1) with the assistance of the Joint Chiefs of Staff. 
In providing such assistance, the Chairman of the Joint Chiefs 
of Staff shall consult with the Chief of the National Guard 
Bureau.
    (b) Readiness Posture.--(1) The readiness posture to be 
covered by the report under subsection (a) is a readiness 
posture for units of the Armed Forces, or for designated units 
of the Armed Forces, that provides for a rotation of such units 
between a state of high readiness and a state of low readiness.
    (2) As part of the evaluation of the readiness posture 
described in paragraph (1), the report shall address in 
particular a readiness posture that--
            (A) establishes within the Armed Forces two 
        equivalent forces each structured so as to be capable 
        of fighting and winning a major theater war; and
            (B) provides for an alternating rotation of such 
        forces between a state of high readiness and a state of 
        low readiness.
    (3) The evaluation of the readiness posture described in 
paragraph (2) shall be based upon assumptions permitting 
comparison with the existing force structure as follows:
            (A) That there are assembled from among the units 
        of the Armed Forces two equivalent forces each 
        structured so as to be capable of fighting and winning 
        a major theater war.
            (B) That each force referred to in subparagraph (A) 
        includes--
                    (i) four active Army divisions, including 
                one mechanized division, one armored division, 
                one light infantry division, and one division 
                combining airborne units and air assault units, 
                and appropriate support and service support 
                units for such divisions;
                    (ii) six divisions (or division 
                equivalents) of the Army National Guard or the 
                Army Reserve that are essentially equivalent in 
                structure, and appropriate support and service 
                support units for such divisions;
                    (iii) six aircraft carrier battle groups;
                    (iv) six active Air Force fighter wings (or 
                fighter wing equivalents);
                    (v) four Air Force reserve fighter wings 
                (or fighter wing equivalents); and
                    (vi) one active Marine Corps expeditionary 
                force.
            (C) That each force may be supplemented by critical 
        units or units in short supply, including heavy bomber 
        units, strategic lift units, and aerial reconnaissance 
        units, that are not subject to the readiness rotation 
        otherwise assumed for purposes of the evaluation or are 
        subject to the rotation on a modified basis.
            (D) That units of the Armed Forces not assigned to 
        a force are available for operations other than those 
        essential to fight and win a major theater war, 
        including peace operations.
            (E) That the state of readiness of each force 
        alternates between a state of high readiness and a 
        state of low readiness on a frequency determined by the 
        Secretary (but not more often than once every six 
        months) and with only one force at a given state of 
        readiness at any one time.
            (F) That, during the period of state of high 
        readiness of a force, any operations or activities 
        (including leave and education and training of 
        personnel) that detract from the near-term wartime 
        readiness of the force are temporary and their effects 
        on such state of readiness minimized.
            (G) That units are assigned overseas during the 
        period of state of high readiness of the force to which 
        the units are assigned primarily on a temporary duty 
        basis.
            (H) That, during the period of high readiness of a 
        force, the operational war plans for the force 
        incorporate the divisions (or division equivalents) of 
        the Army Reserve or Army National Guard assigned to the 
        force in a manner such that one such division (or 
        division equivalent) is, on a rotating basis for such 
        divisions (or division equivalents)during the period, 
maintained in a high state of readiness and dedicated as the first 
reserve combat division to be transferred overseas in the event of a 
major theater war.
    (c) Report Elements.--The report under this section shall 
include the following elements for the readiness posture 
described in subsection (b)(2):
            (1) An estimate of the range of cost savings 
        achievable over the long term as a result of 
        implementing the readiness posture, including--
                    (A) the savings achievable from reduced 
                training levels and readiness levels during 
                periods in which a force referred to in 
                subsection (b)(3)(A) is in a state of low 
                readiness; and
                    (B) the savings achievable from reductions 
                in costs of infrastructure overseas as a result 
                of reduced permanent change of station 
                rotations.
            (2) An assessment of the potential risks associated 
        with a lower readiness status for units assigned to a 
        force in a state of low readiness under the readiness 
        posture, including the risks associated with the 
        delayed availability of such units overseas in the 
        event of two nearly simultaneous major theater wars.
            (3) An assessment of the potential risks associated 
        with requiring the forces under the readiness posture 
        to fight a major war in any theater worldwide.
            (4) An assessment of the modifications of the 
        current force structure of the Armed Forces that are 
        necessary to achieve the range of cost savings 
        estimated under paragraph (1), including the extent of 
        the diminishment, if any, of the military capabilities 
        of the Armed Forces as a result of the modifications.
            (5) An assessment whether or not the risks of 
        diminished military capability associated with 
        implementation of the readiness posture exceed the 
        risks of diminished military capability associated with 
        the modifications of the current force structure 
        necessary to achieve cost savings equivalent to the 
        best case for cost savings resulting from the 
        implementation of the readiness posture.
    (d) Form of Report.--The report under this section shall be 
submitted in unclassified form, but may contain a classified 
annex.
    (e) Definitions.--In this section:
            (1) The term ``state of high readiness'', in the 
        case of a military force, means the capability to 
        mobilize first-to-arrive units of the force within 18 
        hours and last-to-arrive units within 120 days of a 
        particular event.
            (2) The term ``state of low readiness'', in the 
        case of a military force, means the capability to 
        mobilize first-to-arrive units within 90 days and last-
        to-arrive units within 180 days of a particular event.

SEC. 331. REPORT ON MILITARY EXERCISES CONDUCTED UNDER CERTAIN TRAINING 
                    EXERCISES PROGRAMS

    (a) Report.--Not later than February 16, 1998, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the military 
exercises conducted by the Department of Defense during fiscal 
years 1995, 1996, and 1997 and the military exercises planned 
to be conducted during fiscal years 1998, 1999, and 2000, under 
the following training exercises programs:
            (1) The program known as the ``CJCS Exercise 
        Program''.
            (2) The program known as the ``Partnership for 
        Peace program``.
            (3) The Cooperative Threat Reduction programs.
    (b) Information on Exercises Conducted or To Be 
Conducted.--The report under subsection (a) shall include the 
following information for each exercise included in the report, 
which shall be set forth by fiscal year and shown within the 
fiscal year by the sponsoring command:
            (1) Name of the exercise.
            (2) Type, description, duration, and objectives of 
        the exercise.
            (3) Participating units, including the number of 
        personnel participating in each unit.
            (4) For each participating unit, the percentage of 
        the tasks on that unit's specification of tasks (known 
        as a mission essential task list) or a comparable 
        specification (in the case of any of the Armed Forces 
        not maintaining a mission essential task list 
        designation) that were performed or are scheduled to be 
        performed as part of the exercise.
            (5) The cost of the exercise paid or to be paid out 
        of funds available to the Chairman of the Joint Chiefs 
        of Staff and the cost to each of the Armed Forces 
        participating in the exercise, with a description of 
        the categories of activities for which those costs are 
        incurred in each such case.
            (6) In the case of each planned exercise, the 
        priority of the exercise in relation to all other 
        exercises planned by the sponsoring command to be 
        conducted during that fiscal year.
            (7) In the case of an exercise conducted or to be 
        conducted in a foreign country or with military 
        personnel of a foreign country, the military forces of 
        the foreign country that participated or will 
        participate in the exercise.
    (c) Assessment.--The report under subsection (a) shall 
include--
            (1) an assessment of the ability of each of the 
        Armed Forces to meet requirements of the training 
        exercises programs specified in subsection (a);
            (2) an assessment of the training value of each 
        exercise covered in the report to each unit of the 
        Armed Forces participating in the exercise, including 
        for each such unit an assessment of the value of the 
        percentage under subsection (b)(4) as an indicator of 
        the training value of the exercise for that unit;
            (3) options to minimize the negative effects on 
        operational and personnel tempo resulting from the 
        training exercises programs; and
            (4) in the case of exercises to be conducted in a 
        foreign country or with military personnel of a foreign 
        country--
                    (A) an assessment of the training value of 
                each exercise covered in the report to the 
                foreign countries involved and the extent to 
                which the exercise enhances the readiness 
                capabilities of all military forces involved in 
                the exercise (both United States and foreign); 
                and
                    (B) an assessment of the benefits to be 
                derived through enhanced military-to-military 
                relationships between the United States and 
                foreign countries.
    (d) Funding Limitation Pending Receipt of Report.--Of the 
funds available for fiscal year 1998 for the conduct of the 
CJCS Exercise Program, not more than 90 percent may be expended 
before the date on which the report required under subsection 
(a) is submitted.

SEC. 332. REPORT ON OVERSEAS DEPLOYMENTS.

    (a) Report.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the deployments overseas of members of the 
Armed Forces (other than the Coast Guard). The report shall 
describe the deployments as of June 30, 1996, and as of June 
30, 1997.
    (b) Elements.--The report shall include the following, 
shown as of each date specified in subsection (a) and shown for 
the Armed Forces in the aggregate and separately for each of 
the Armed Forces:
            (1) The number of military personnel deployed 
        overseas pursuant to a permanent duty assignment, shown 
        in the aggregate and by country or ocean to which 
        deployed.
            (2) The number of military personnel deployed 
        overseas pursuant to a temporary duty assignment, 
        including--
                    (A) the number engaged in training with 
                units of a single military department;
                    (B) the number engaged in United States 
                military joint exercises; and
                    (C) the number engaged in training with 
                allied units.
            (3) The number of military personnel deployed 
        overseas who were engaged in contingency operations 
        (including peacekeeping or humanitarian assistance 
        missions) or other activities (other than those 
        personnel covered by paragraphs (1) and (2)).

                  Subtitle C--Environmental Provisions

SEC. 341. REVISION OF MEMBERSHIP TERMS FOR STRATEGIC ENVIRONMENTAL 
                    RESEARCH AND DEVELOPMENT PROGRAM SCIENTIFIC 
                    ADVISORY BOARD.

    Section 2904(b)(4) of title 10, United States Code, is 
amended by striking out ``three'' and inserting in lieu thereof 
``not less than two and not more than four''.

SEC. 342. AMENDMENTS TO AUTHORITY TO ENTER INTO AGREEMENTS WITH OTHER 
                    AGENCIES IN SUPPORT OF ENVIRONMENTAL TECHNOLOGY 
                    CERTIFICATION.

    (a) Authority To Enter Into Agreements With Indian 
Tribes.--Section 327 of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2483; 10 
U.S.C. 2702 note) is amended--
            (1) in subsection (a), by inserting ``, or with an 
        Indian tribe,'' after ``with an agency of a State or 
        local government'';
            (2) by redesignating subsection (e) as subsection 
        (f); and
            (3) by inserting after subsection (d) the following 
        new subsection:
    ``(e) Definition.--In this section, the term `Indian tribe' 
has the meaning given that term by section 101(36) of the 
Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9601(36)).''.
    (b) Elimination of Certain Limitation on Authority.--
Subsection (b)(1) of such section is amended by striking out 
``in carrying out its environmental restoration activities''.
    (c) Additional Report Information.--Subsection (d) of such 
section is amended by adding at the end the following:
            ``(5) A statement of the funding that will be 
        required to meet commitments made to State and local 
        governments and Indian tribes under such agreements 
        entered into during the fiscal year preceding the 
        fiscal year in which the report is submitted.
            ``(6) A description of any cost-sharing arrangement 
        under any such agreements.''.
    (d) Guidelines for Reimbursement and Cost-Sharing.--Not 
later than 90 days after the date of enactment of this Act, the 
Secretary of Defense shall submit to Congress a report setting 
forth the guidelines established by the Secretary for 
reimbursement of State and local governments, and for cost-
sharing between the Department of Defense, such governments, 
and vendors, under cooperative agreements entered into under 
such section 327.
    (e) Effective Date.--The amendments made by this section 
shall take effect 30 days after the date on which the report 
required by subsection (d) is submitted to Congress.

SEC. 343. MODIFICATIONS OF AUTHORITY TO STORE AND DISPOSE OF NONDEFENSE 
                    TOXIC AND HAZARDOUS MATERIALS.

    (a) Storage of Materials Owned by Members and Dependents.--
Subsection (a)(1) of section 2692 of title 10, United States 
Code, is amended by striking out ``by the Department of 
Defense.'' and inserting in lieu thereof the following: 
``either by the Department of Defense or by a member of the 
armed forces (or a dependent of the member) assigned to or 
provided military housing on the installation.''.
    (b) Additional Authority.--Subsection (b) of such section 
is amended--
            (1) by redesignating paragraphs (1) through (9) as 
        paragraphs (2) through (10), respectively; and
            (2) by inserting before paragraph (2) (as so 
        redesignated) the following new paragraph (1):
            ``(1) the storage, treatment, or disposal of 
        materials that will be or have been used in connection 
        with an activity of the Department of Defense or in 
        connection with a service to be performed on an 
        installation of the Department for the benefit of the 
        Department;''.
    (c) Storage and Disposal of Explosives To Assist Law 
Enforcement Agencies.--Subsection (b) of such section is 
amended in paragraph (3) (as redesignated by subsection (b))--
            (1) by striking out ``Federal law enforcement'' and 
        inserting in lieu thereof ``Federal, State, or local 
        law enforcement''; and
            (2) by striking out ``Federal agency'' and 
        inserting in lieu thereof ``Federal, State, or local 
        agency''.
    (d) Storage of Material in Connection With Authorized and 
Compatible Use of a Defense Facility.--Subsection (b) of such 
section is amended in paragraph (9) (as redesignated by 
subsection (b))--
            (1) by striking out ``by a private person in 
        connection with the authorized and compatible use by 
        that person of an industrial-type'' and inserting in 
        lieu thereof ``in connection with the authorized and 
        compatible use of a''; and
            (2) by striking out ``; and'' at the end and 
        inserting in lieu thereof the following: ``, including 
        the use of such a facility for testing materiel or 
        training personnel;''.
    (e) Treatment and Disposal of Material in Connection With 
Authorized and Compatible Use of a Defense Facility.--
Subsection (b) of such section is amended in paragraph (10) (as 
redesignated by subsection (b))--
            (1) by striking out ``by a private person in 
        connection with the authorized and compatible 
        commercial use by that person of an industrial-type'' 
        and inserting in lieu thereof ``in connection with the 
        authorized and compatible use of a'';
            (2) by striking out ``with that person'' and 
        inserting in lieu thereof ``or agreement with the 
        prospective user'';
            (3) by striking out ``for that person's'' in 
        subparagraph (B) and inserting in lieu thereof ``for 
        the prospective user's''; and
            (4) by striking out the period at the end and 
        inserting in lieu thereof ``; and''.
    (f) Storage of Material in Connection With Space Launch 
Facilities.--Subsection (b) of such section is further amended 
by adding at the end the following new paragraph:
            ``(11) the storage of any material that is not 
        owned by the Department of Defense if the Secretary of 
        the military department concerned determines that the 
        material is required or generated in connection with 
        the use of a space launch facility located on an 
        installation of the Department of Defense or on other 
        land controlled by the United States.''.
    (g) Technical Amendments.--(1) Subsection (a)(1) of such 
section is further amended by striking out ``storage'' and 
inserting in lieu thereof ``storage, treatment,''.
    (2) The heading for such section is amended to read as 
follows:

``Sec. 2692. Storage, treatment, and disposal of nondefense toxic and 
                    hazardous materials''.

    (3) The item relating to such section in the table of 
sections at the beginning of chapter 159 of such title is 
amended to read as follows:

``2692. Storage, treatment, and disposal of nondefense toxic and 
          hazardous materials.''.

    (h) Savings Clause.--Nothing in the amendments made by this 
section is intended to modify environmental laws or laws 
relating to the siting of facilities.

SEC. 344. ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN RESPONSE TO FINES 
                    AND PENALTIES ASSESSED UNDER ENVIRONMENTAL LAWS.

    (a) Annual Reports.--Section 2706(b)(2) of title 10, United 
States Code, is amended by adding at the end the following:
            ``(H) A statement of the fines and penalties 
        imposed or assessed against the Department of Defense 
        under Federal, State, or local environmental law during 
        the fiscal year preceding the fiscal year in which the 
        report is submitted, setting forth each Federal 
        environmental statute under which a fine or penalty was 
        imposed or assessed during the fiscal year, and, with 
        respect to each such statute--
                    ``(i) the aggregate amount of fines and 
                penalties imposed or assessed during the fiscal 
                year;
                    ``(ii) the aggregate amount of fines and 
                penalties paid during the fiscal year;
                    ``(iii) the total amount required for 
                environmental projects to be carried out by the 
                Department of Defense in lieu of the payment of 
                fines or penalties; and
                    ``(iv) the number of fines and penalties 
                imposed or assessed during the fiscal year that 
                were--
                            ``(I) $100,000 or less; and
                            ``(II) more than $100,000.''.
    (b) Report in Fiscal Year 1998.--The statement submitted by 
the Secretary of Defense under subparagraph (H) of section 
2706(b)(2) of title 10, United States Code, as added by 
subsection (a), in 1998 shall, to the maximum extent 
practicable, include the information required by that 
subparagraph for each of fiscal years 1994 through 1997.

SEC. 345. ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE DEPARTMENT 
                    OF DEFENSE OVERSEAS.

    Section 2706 of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection 
        (e); and
            (2) by inserting after subsection (c) the following 
        new subsection (d):
    ``(d) Report on Environmental Activities Overseas.--(1) The 
Secretary of Defense shall submit to Congress each year, not 
later than 30 days after the date on which the President 
submits to Congress the budget for a fiscal year, a report on 
the environmental activities of the Department of Defense 
overseas.
    ``(2) Each such report shall include a statement of the 
funding levels during such fiscal year for each of the 
following categories:
            ``(A) Compliance by the Department of Defense with 
        requirements under a treaty, law, contract, or other 
        agreement for environmental restoration or compliance 
        activities.
            ``(B) Performance by the Department of Defense of 
        other environmental restoration and compliance 
        activities overseas.
            ``(C) Performance by the Department of Defense of 
        any other overseas activities related to the 
        environment, including conferences, meetings, and 
        studies for pilot programs, and travel related to such 
        activities.''.

SEC. 346. REVIEW OF EXISTING ENVIRONMENTAL CONSEQUENCES OF THE PRESENCE 
                    OF THE ARMED FORCES IN BERMUDA.

    Not later than 120 days after the date of enactment of this 
Act, the Secretary of Defense shall submit to the congressional 
defense committees a report on any remaining environmental 
effects of the presence of the Armed Forces of the United 
States in Bermuda.

SEC. 347. SENSE OF CONGRESS ON DEPLOYMENT OF UNITED STATES ARMED FORCES 
                    ABROAD FOR ENVIRONMENTAL PRESERVATION ACTIVITIES.

    (a) Sense of Congress.--It is the sense of Congress that 
members of the Army, Navy, Air Force, and Marine Corps should 
not be deployed outside the United States to provide assistance 
to another nation in connection with environmental preservation 
activities in that nation, unless the Secretary of Defense 
determines that such activities are necessary for national security 
purposes.
    (b) Scope of Section.--For purposes of this section, 
environmental preservation activities do not include any of the 
following:
            (1) Activities undertaken for humanitarian 
        purposes, disaster relief activities, peacekeeping 
        activities, or operational training activities.
            (2) Environmental compliance and restoration 
        activities associated with military installations and 
        deployments outside the United States.

SEC. 348. RECOVERY AND SHARING OF COSTS OF ENVIRONMENTAL RESTORATION AT 
                    DEPARTMENT OF DEFENSE SITES.

    (a) Regulations.--Not later than March 1, 1998, the 
Secretary of Defense shall prescribe regulations containing the 
guidelines and requirements described in subsections (b) and 
(c).
    (b) Guidelines.--(1) The regulations prescribed under 
subsection (a) shall contain uniform guidelines for the 
military departments and defense agencies concerning the cost-
recovery and cost-sharing activities of those departments and 
agencies.
    (2) The Secretary shall take appropriate actions to ensure 
the implementation of the guidelines.
    (c) Requirements.--The regulations prescribed under 
subsection (a) shall contain requirements for the Secretaries 
of the military departments and the heads of defense agencies 
to--
            (1) obtain all data that is relevant for purposes 
        of cost-recovery and cost-sharing activities; and
            (2) identify any negligence or other misconduct 
        that may preclude indemnification or reimbursement by 
        the Department of Defense for the costs of 
        environmental restoration at a Department site or 
        justify the recovery or sharing of costs associated 
        with such restoration.
    (d) Definition.--In this section, the term ``cost-recovery 
and cost-sharing activities'' means activities concerning--
            (1) the recovery of the costs of environmental 
        restoration at Department of Defense sites from 
        contractors of the Department and other private parties 
        that contribute to environmental contamination at such 
        sites; and
            (2) the sharing of the costs of such restoration 
        with such contractors and parties.

SEC. 349. PARTNERSHIPS FOR INVESTMENT IN INNOVATIVE ENVIRONMENTAL 
                    TECHNOLOGIES.

    (a) Authority.--Subject to subsection (b), the Secretary of 
Defense may enter into a partnership with one or more private 
entities to demonstrate and validate innovative environmental 
technologies.
    (b) Limitations.--The Secretary of Defense may enter into a 
partnership with respect to an environmental technology under 
subsection (a) only if--
            (1) any private entities participating in the 
        partnership are selected through the use of competitive 
        procedures;
            (2) the partnership provides for parties other than 
        the Department of Defense to provide at least 50 
        percent of the funding required (not including in-kind 
        contributions or preexisting investments); and
            (3) the Secretary determines that--
                    (A) the technology has clear potential to 
                be of significant value to the Department of 
                Defense in its environmental remediation 
                activities at a substantial number of 
                Department of Defense sites; and
                    (B) the technology would not be developed 
                without the commitment of Department of Defense 
                funds.
    (c) Evaluation Guidelines.--Before entering into a 
partnership with respect to an environmental technology under 
subsection (a), the Secretary of Defense shall give 
consideration to the following:
            (1) The potential for the technology to be used by 
        the Department of Defense for environmental 
        remediation.
            (2) The technical feasibility and maturity of the 
        technology.
            (3) The adequacy of financial and management plans 
        to demonstrate and validate the technology.
            (4) The costs and benefits to the Department of 
        Defense of developing and using the technology.
            (5) The potential for commercialization of the 
        technology.
            (6) The proposed arrangements for sharing the costs 
        of the partnership through the use of resources outside 
        the Department of Defense.
    (d) Funding.--Under a partnership entered into under 
subsection (a), the Secretary of Defense may provide funds to 
the partner or partners from appropriations available to the 
Department of Defense for environmental activities, for a 
period of up to five years.
    (e) Report.--In the annual report required under section 
2706(a) of title 10, United States Code, the Secretary of 
Defense shall include the following information with respect to 
partnerships entered into under this section:
            (1) The number of such partnerships.
            (2) A description of the nature of the technology 
        involved in each such partnership.
            (3) A list of all partners in such partnerships.
    (f) Coordination.--The Secretary of Defense shall ensure 
that the Department of Defense coordinates with the 
Administrator of the Environmental Protection Agency in any 
verification sponsored by the Department of technologies 
demonstrated and validated by a partnership entered into under 
this section.
    (g) Procedures.--The Secretary of Defense shall develop 
appropriate procedures to ensure that all Department of Defense 
funds committed to a partnership entered into under this 
section are expended for the purpose authorized in the 
partnership agreement. The Secretary may not enter into a 
partnership under this section until 30 days after the date on 
which a copy of such procedures is provided to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives.
    (h) Termination of Authority.--The authority to enter into 
agreements under subsection (a) shall terminate three years 
after the date of the enactment of this Act.

SEC. 350. PROCUREMENT OF RECYCLED COPIER PAPER.

    (a) Procurement Requirements.--Chapter 140 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 2378. Procurement of copier paper containing specified 
                    percentages of post-consumer recycled content

    ``(a) Procurement Requirement.--(1) Except as provided in 
subsections (b) and (c), a department or agency of the 
Department of Defense may not procure copying machine paper 
after the applicable date specified in paragraph (2) unless the 
percentage of post-consumer recycled content of the paper meets 
the percentage then in effect under such paragraph.
    ``(2) The percentage of post-consumer recycled content of 
paper required under paragraph (1) is as follows:
            ``(A) 20 percent as of January 1, 1998.
            ``(B) 30 percent as of January 1, 1999.
            ``(C) 50 percent as of January 1, 2004.
    ``(b) Exceptions.--A department or agency of the Department 
of Defense is not required to procure copying machine paper 
containing a percentage of post-consumer recycled content that 
meets the applicable requirement in subsection (a) if the 
Secretary concerned determines that one or more of the 
following circumstances apply with respect to that procurement:
            ``(1) The cost of procuring copying machine paper 
        satisfying the applicable requirement significantly 
        exceeds the cost of procuring copying machine paper 
        containing a percentage of post-consumer recycled 
        content that does not meet such requirement. The 
        Secretary concerned shall establish the cost 
        differential to be applied under this paragraph.
            ``(2) Copying machine paper containing a percentage 
        of post-consumer recycled content meeting such 
        requirement is not reasonably available within a 
        reasonable period of time.
            ``(3) Copying machine paper containing a percentage 
        of post-consumer recycled content meeting such 
        requirement does not meet performance standards of the 
        department or agency for copying machine paper.
    ``(c) Effect of Inability To Meet Goal in 2004.--(1) In the 
case of the requirement that will take effect on January 1, 
2004, pursuant to subsection (a)(2)(C), the requirement shall 
not take effect with respect to a military department or 
Defense Agency if the Secretary of Defense determines that the 
department or agency will be unable to meet such requirement by 
that date.
    ``(2) The Secretary shall submit to Congress written notice 
of any determination made under paragraph (1) and the reasons 
for the determination. The Secretary shall submit such notice, 
if at all, not later than January 1, 2003.
    ``(d) Secretary Concerned Defined.--In this section, the 
term `Secretary concerned' means the Secretary of each military 
department and the Secretary of Defense with respect to the 
Defense Agencies.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2378. Procurement of copier paper containing specified percentages of 
          post-consumer recycled content.''.

SEC. 351. PILOT PROGRAM FOR THE SALE OF AIR POLLUTION EMISSION 
                    REDUCTION INCENTIVES.

    (a) Authority.--(1) The Secretary of Defense may, in 
consultation with the Administrator of General Services, carry 
out a pilot program to assess the feasibility and advisability 
of the sale of economic incentives for the reduction of 
emission of air pollutants attributable to a facility of a 
military department.
    (2) The Secretary may carry out the pilot program during 
the period beginning on the date of the enactment of this Act 
and ending two years after such date.
    (b) Incentives Available for Sale.--(1) Under the pilot 
program, the Secretary may sell economic incentives for the 
reduction of emission of air pollutants attributable to a 
facility of a military department only if such incentives are 
not otherwise required for the activities or operations of the 
military department.
    (2) The Secretary may not, under the pilot program, sell 
economic incentives attributable to the closure or realignment 
of a military installation under a base closure law.
    (3) If the Secretary determines that additional sales of 
economic incentives are likely to result in amounts available 
for allocation under subsection (c)(2) in a fiscal year in 
excess of the limitation set forth in subparagraph (B) of that 
subsection, the Secretary shall not carry out such additional 
sales in that fiscal year.
    (c) Use of Proceeds.--(1) The proceeds of sale of economic 
incentives attributable to a facility of a military department 
shall be credited to the funds available to the facility for 
the costs of identifying, quantifying, or valuing economic 
incentives for the reduction of emission of air pollutants. The 
amount credited shall be equal to the cost incurred in 
identifying, quantifying, or valuing the economic incentives 
sold.
    (2)(A)(i) If after crediting under paragraph (1) a balance 
remains, the amount of such balance shall be available to the 
Department of Defense for allocation by the Secretary to the 
military departments for programs, projects, and activities 
necessary for compliance with Federal environmental laws, 
including the purchase of economic incentives for the reduction 
of emission of air pollutants.
    (ii) To the extent practicable, amounts allocated to the 
military departments under this subparagraph shall be made 
available to the facilities that generated the economic 
incentives providing the basis for the amounts.
    (B) The total amount allocated under this paragraph in a 
fiscal year from sales of economic incentives may not equal or 
exceed $500,000.
    (3) If after crediting under paragraph (1) a balance 
remains in excess of an amount equal to the limitation set 
forth in paragraph (2)(B), the amount of the excess shall be 
covered over into the Treasury as miscellaneous receipts.
    (4) Funds credited under paragraph (1) or allocated under 
paragraph (2) shall be merged with the funds to which credited 
or allocated, as the case may be, and shall be available for 
the same purposes and for the same period as the funds with 
which merged.
    (d) Definitions.--In this section:
            (1) The term ``base closure law'' means the 
        following:
                    (A) Section 2687 of title 10, United States 
                Code.
                    (B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                (Public Law 100-526; 10 U.S.C. 2687 note).
                    (C) The Defense Base Closure and 
                Realignment Act of 1990 (part A of title XXIX 
                of Public Law 101-510; 10 U.S.C. 2687 note).
            (2) The term ``economic incentives for the 
        reduction of emission of air pollutants'' means any 
        transferable economic incentives (including marketable 
        permits and emission rights) necessary or appropriate 
        to meet air quality requirements under the Clean Air 
        Act (42 U.S.C. 7401 et seq.).

                   Subtitle D--Depot-Level Activities

SEC. 355. DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.

    (a) Depot-Level Maintenance and Repair Defined.--Chapter 
146 of title 10, United States Code, is amended by inserting 
before section 2461 the following new section:

``Sec. 2460. Definition of depot-level maintenance and repair

    ``(a) In General.--In this chapter, the term `depot-level 
maintenance and repair' means (except as provided in subsection 
(b)) material maintenance or repair requiring the overhaul, 
upgrading, or rebuilding of parts, assemblies, or 
subassemblies, and the testing and reclamation of equipment as 
necessary, regardless of the source of funds for the 
maintenance or repair. The term includes (1) all aspects of 
software maintenance classified by the Department of Defense as 
of July 1, 1995, as depot-level maintenance and repair, and (2) 
interim contractor support or contractor logistics support (or 
any similar contractor support), to the extent that such 
support is for the performance of services described in the 
preceding sentence.
    ``(b) Exceptions.--(1) The term does not include the 
procurement of major modifications or upgrades of weapon 
systems that are designed to improve program performance or the 
nuclear refueling of an aircraft carrier. A major upgrade 
program covered by this exception could continue to be 
performed by private or public sector activities.
    ``(2) The term also does not include the procurement of 
parts for safety modifications. However, the term does include 
the installation of parts for that purpose.''.
    (b) Conforming Amendment.--Section 2469 of title 10, United 
States Code, is amended in subsections (a) and (b), by striking 
out ``or repair'' and inserting in lieu thereof ``and repair''.
    (c) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 146 of title 10, United States Code, is 
amended by inserting before the item relating to section 2461 
the following new item:

``2460. Definition of depot-level maintenance and repair.''.

    (2) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part IV of subtitle A, of such title 
are amended by striking out the item relating to chapter 146 
and inserting in lieu thereof the following new item:

``146. Contracting for Performance of Civilian Commercial or 
              Industrial Type Functions..........................2460''.

SEC. 356. CORE LOGISTICS CAPABILITIES OF DEPARTMENT OF DEFENSE.

    (a) In General.--Section 2464 of title 10, United States 
Code, is amended to read as follows:

``Sec. 2464. Core logistics capabilities

    ``(a) Necessity for Core Logistics Capabilities.--(1) It is 
essential for the national defense that the Department of 
Defense maintain a core logistics capability that is 
Government-owned and Government-operated (including Government 
personnel and Government-owned and Government-operated 
equipment and facilities) to ensure a ready and controlled 
source of technical competence and resources necessary to 
ensure effective and timely response to a mobilization, 
national defense contingency situations, and other emergency 
requirements.
    ``(2) The Secretary of Defense shall identify the core 
logistics capabilities described in paragraph (1) and the 
workload required to maintain those capabilities.
    ``(3) The core logistics capabilities identified under 
paragraphs (1) and (2) shall include those capabilities that 
are necessary to maintain and repair the weapon systems and 
other military equipment (including mission-essential weapon 
systems or materiel not later than four years after achieving 
initial operational capability, but excluding systems and 
equipment under special access programs, nuclear aircraft 
carriers, and commercial items described in paragraph (5)) that 
are identified by the Secretary, in consultation with the 
Chairman of the Joint Chiefs of Staff, as necessary to enable 
the armed forcesto fulfill the strategic and contingency plans 
prepared by the Chairman of the Joint Chiefs of Staff under section 
153(a) of this title.
    ``(4) The Secretary of Defense shall require the 
performance of core logistics workloads necessary to maintain 
the core logistics capabilities identified under paragraphs 
(1), (2), and (3) at Government-owned, Government-operated 
facilities of the Department of Defense (including Government-
owned, Government-operated facilities of a military department) 
and shall assign such facilities sufficient workload to ensure 
cost efficiency and technical competence in peacetime while 
preserving the surge capacity and reconstitution capabilities 
necessary to support fully the strategic and contingency plans 
referred to in paragraph (3).
    ``(5) The commercial items covered by paragraph (3) are 
commercial items that have been sold or leased in substantial 
quantities to the general public and are purchased without 
modification in the same form that they are sold in the 
commercial marketplace, or with minor modifications to meet 
Federal Government requirements.
    ``(b) Limitation on Contracting.--(1) Except as provided in 
paragraph (2), performance of workload needed to maintain a 
logistics capability identified by the Secretary under 
subsection (a)(2) may not be contracted for performance by non-
Government personnel under the procedures and requirements of 
Office of Management and Budget Circular A-76 or any successor 
administrative regulation or policy (hereinafter in this 
section referred to as OMB Circular A-76).
    ``(2) The Secretary of Defense may waive paragraph (1) in 
the case of any such logistics capability and provide that 
performance of the workload needed to maintain that capability 
shall be considered for conversion to contractor performance in 
accordance with OMB Circular A-76. Any such waiver shall be 
made under regulations prescribed by the Secretary and shall be 
based on a determination by the Secretary that Government 
performance of the workload is no longer required for national 
defense reasons. Such regulations shall include criteria for 
determining whether Government performance of any such workload 
is no longer required for national defense reasons.
    ``(3)(A) A waiver under paragraph (2) may not take effect 
until the expiration of the first period of 30 days of 
continuous session of Congress that begins on or after the date 
on which the Secretary submits a report on the waiver to the 
Committee on Armed Services and the Committee on Appropriations 
of the Senate and the Committee on National Security and the 
Committee on Appropriations of the House of Representatives.
    ``(B) For the purposes of subparagraph (A)--
            ``(i) continuity of session is broken only by an 
        adjournment of Congress sine die; and
            ``(ii) the days on which either House is not in 
        session because of an adjournment of more than three 
        days to a day certain are excluded in the computation 
        of any period of time in which Congress is in 
        continuous session.''.
    (b) Clerical Amendment.--The item relating to such section 
at the beginning of chapter 146 of such title is amended to 
read as follows:

``2464. Core logistics capabilities.''.

SEC. 357. INCREASE IN PERCENTAGE OF DEPOT-LEVEL MAINTENANCE AND REPAIR 
                    THAT MAY BE CONTRACTED FOR PERFORMANCE BY NON-
                    GOVERNMENT PERSONNEL.

    Section 2466(a) of title 10, United States Code, is amended 
by striking out ``40 percent'' and inserting in lieu thereof 
``50 percent''.

SEC. 358. ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.

    Subsection (e) of section 2466 of title 10, United States 
Code, is amended to read as follows:
    ``(e) Report.--(1) Not later than February 1 of each year, 
the Secretary of Defense shall submit to Congress a report 
identifying, for each military department and Defense Agency, 
the percentage of the funds referred to in subsection (a) that 
were expended during the preceding fiscal year for performance 
of depot-level maintenance and repair workloads bythe public 
and private sectors as required by section 2466 of this title.
    ``(2) Not later than 90 days after the date on which the 
Secretary submits the annual report under paragraph (1), the 
Comptroller General shall submit to Congress the Comptroller 
General's views on whether the Department of Defense has 
complied with the requirements of subsection (a) for the fiscal 
year covered by the report.''.

SEC. 359. REQUIREMENT FOR USE OF COMPETITIVE PROCEDURES IN CONTRACTING 
                    FOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE AND 
                    REPAIR WORKLOADS FORMERLY PERFORMED AT CLOSED OR 
                    REALIGNED MILITARY INSTALLATIONS.

    (a) Application to certain Workloads.--(1) Chapter 146 of 
title 10, United States Code, is amended by inserting after 
section 2469 the following new section:

``Sec. 2469a. Use of competitive procedures in contracting for 
                    performance of depot-level maintenance and repair 
                    workloads formerly performed at certain military 
                    installations

    ``(a) Definitions.--In this section:
            ``(1) The term `closed or realigned military 
        installation' means a military installation where a 
        depot-level maintenance and repair facility was 
        approved in 1995 for closure or realignment under the 
        Defense Base Closure and Realignment Act of 1990 (part 
        A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note).
            ``(2) The term `military installation' includes a 
        former military installation that was a military 
        installation when it was approved in 1995 for closure 
        or realignment under the Defense Base Closure and 
        Realignment Act of 1990 and that has been closed or 
        realigned under the Act.
            ``(3) The terms `realignment' and `realigned' mean 
        a decision under the Defense Base Closure and 
        Realignment Act of 1990 that results in both a 
        reduction and relocation of functions and civilian 
        personnel positions.
    ``(b) Covered Depot-Level Maintenance and Repair 
Workloads.--Except as provided in subsection (c), this section 
applies with respect to any depot-level maintenance and repair 
workload that--
            ``(1) was performed as of January 1, 1997, at a 
        military installation that was approved in 1995 for 
        closure or realignment under the Defense Base Closure 
        and Realignment Act of 1990 and that has been closed or 
        realigned under the Act; and
            ``(2) is proposed to be converted from performance 
        by Department of Defense personnel to performance by a 
        private sector source.
    ``(c) Exceptions.--This section shall not apply with 
respect to--
            ``(1) a depot-level maintenance and repair workload 
        that is to be consolidated to another military 
        installation (other than a closed or realigned military 
        installation) as a result of a base closure or 
        realignment action or a decision made by the Secretary 
        concerned or the Defense Depot Maintenance Council;
            ``(2) a workload necessary to maintain a core 
        logistics capability identified under section 2464 of 
        this title; or
            ``(3) any contract originally entered into before 
        the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 1998.
    ``(d) Conditions and Solicitation.--A solicitation of 
offers for the performance of any depot-level maintenance and 
repair workload described in subsection (b) may be issued, and 
a contract may be awarded pursuant to such a solicitation, only 
if the following conditions are met with respect to the 
contract and the solicitation specifically states the 
conditions:
            ``(1) The source selection process used in the case 
        of the solicitation and contract permits the 
        consideration of offers submitted by private sector 
        sources and offers submitted by public sector sources.
            ``(2) The source selection process used in the case 
        of the solicitation and contract requires that, in the 
        comparison of offers, there be taken into account--
                    ``(A) the fair market value (or if fair 
                market value cannot be determined, the 
                estimated book value) of any land, plant, or 
                equipment from a military installation that is 
                proposed by a private offeror to be used to 
                meet a specific workload (whether these assets 
                are provided to the offeror by a local 
                redevelopment authority or by any other source 
                approved by an official of the Department of 
                Defense); and
                    ``(B) the total estimated direct and 
                indirect costs that will be incurred by the 
                Department of Defense and the total estimated 
                direct and indirect savings (including 
                overhead) that will be derived by the 
                Department of Defense.
            ``(3) The cost standards used to determine the 
        depreciation of facilities and equipment shall, to the 
        maximum extent practicable, provide identical treatment 
        to all public and private sector offerors.
            ``(4) Any offeror, whether public or private, may 
        offer to perform the workload at any location or 
        locations selected by the offeror and to team with any 
        other public or private entity to perform that workload 
        at one or more locations, including a Center of 
        Industrial and Technical Excellence designated under 
        section 2474 of this title.
            ``(5) No offeror may be given any preferential 
        consideration for, or in any way be limited to, 
        performing the workload in-place or at any other single 
        location.
    ``(e) Contracts for Multiple Workloads.--(1) A solicitation 
may be issued for a single contract for the performance of 
multiple depot-level maintenance and repair workloads described 
in subsection (b) only if--
            ``(A) the Secretary of Defense determines in 
        writing that the individual workloads cannot as 
        logically and economically be performed without 
        combination by sources that are potentially qualified 
        to submit an offer and to be awarded a contract to 
        perform those individual workloads;
            ``(B) the Secretary submits to Congress a report 
        setting forth the determination together with the 
        reasons for the determination; and
            ``(C) the solicitation of offers for the contract 
        is issued more than 60 days after the date on which the 
        Secretary submits the report.
    ``(2) The Comptroller General shall review each report 
submitted under paragraph (1)(B) and, not later than 30 days 
after the report is submitted to Congress, shall submit to 
Congress the Comptroller General's views regarding the 
determination of the Secretary that is set forth in the report, 
together with any other findings that the Comptroller General 
considers appropriate.
    ``(f) Competitive Procedures Required.--Section 2304(c)(7) 
of this title shall not be used as the basis for an exception 
to the requirement to use competitive procedures for any 
contract for a depot-level maintenance and repair workload 
described in subsection (b).
    ``(g) Reviews of Competitive Procedures.--If a solicitation 
of offers for a contract for, or award of, any depot-level 
maintenance and repair workload described in subsection (b) is 
issued, the Comptroller General shall--
            ``(1) within 45 days after the issuance of the 
        solicitation, review the solicitation and report to 
        Congress on whether the solicitation--
                    ``(A) provides substantially equal 
                opportunity for public and private offerors to 
                compete for the contract without regard to the 
                location at which the workload is to be 
                performed; and
                    ``(B) is in compliance with the 
                requirements of this section and all applicable 
                provisions of law and regulations; and
            ``(2) within 45 days after any contract or award 
        resulting from the solicitation is entered into or 
        made, reviewthe contract or award, including the 
contracting or award process, and report to Congress on whether--
                    ``(A) the procedures used to conduct the 
                competition--
                            ``(i) provided substantially equal 
                        opportunity for public and private 
                        offerors to compete for the contract 
                        without regard to the location at which 
                        the workload is to be performed; and
                            ``(ii) were in compliance with the 
                        requirements of this section and all 
                        applicable provisions of law and 
                        regulations;
                    ``(B) appropriate consideration was given 
                to factors other than cost in the selection of 
                the source for performance of the workload; and
                    ``(C) the contract or award resulted in the 
                lowest total cost to the Department of Defense 
                for performance of the workload.
    ``(h) Resolution of Workload Award Objections.--Any public 
or private entity may, pursuant to procedures established by 
the Secretary, object to a solicitation of offers under this 
section for the performance of any depot-level maintenance and 
repair workload, or the award or proposed award of any workload 
pursuant to such a solicitation. The Secretary may designate a 
qualified individual or entity to review the objection; 
however, the Secretary shall not designate the Source Selection 
Authority or any individual from the same military department 
as the Source Selection Authority to review the objection. The 
Secretary shall take appropriate action to address any defect 
in the solicitation or award in the event that the objection is 
sustained.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2469 
the following new item:

``2469a. Use of competitive procedures in contracting for performance of 
          depot-level maintenance and repair workloads formerly 
          performed at certain military installations.''.

    (b) Limitation Relating to Timing of Solicitation.--The 
first solicitation of offers from private sector sources for 
the performance of a depot-level maintenance and repair 
workload described in subsection (b) of section 2469a of title 
10, United States Code, as added by subsection (a), may be 
issued pursuant to such section only after the date that is 30 
days after the latest of the following:
            (1) The date on which the Secretary of Defense 
        publishes and submits to Congress a plan or Department 
        of Defense directive that sets forth the specific 
        procedures for the conduct of competitions among 
        private and public sector entities for such depot-level 
        maintenance and repair workloads.
            (2) The date on which the Secretary of Defense 
        submits to Congress the report on allocation of 
        workloads required under subsection (c).
            (3) The date on which the Comptroller General is 
        required to submit the report to Congress under 
        subsection (d).
    (c) Report of Allocation of Workload.--Before any 
solicitation of offers for the performance by a private sector 
source of a depot-level maintenance and repair workload at a 
closed or realigned installation described in subsection (b) of 
section 2469a of title 10, United States Code, as added by 
subsection (a), is to be issued, the Secretary of Defense shall 
submit to Congress a report describing the allocation proposed 
by the Secretary of all workloads that were performed at that 
closed or realigned military installation (as defined in 
subsection (a) of such section) as of July 1, 1995, including--
            (1) the workloads that are considered to be core 
        logistics functions under section 2464 of such title;
            (2) the workloads that are proposed to be 
        transferred to a military installation other than a 
        closed or realigned military installation;
            (3) the workloads that are proposed to be included 
        in the public-private competitions carried out under 
        section 2469a of such title, and, if any of such 
        workloads are to be combined for purposes of such a 
        competition, the reasons for combining the workloads, 
        together with a description of how the workloads are to 
        be combined;
            (4) any workload that has been determined within 
        the Department of Defense as no longer being necessary;
            (5) the proposed schedule for implementing the 
        allocations covered by the report; and
            (6) the anticipated capacity utilization of the 
        military installations and former military 
        installations to which workloads are to be transferred, 
        based on the maximum potential capacity certified to 
        the 1995 Defense Base Closure and Realignment 
        Commission, after the transfers are completed (not 
        taking into account any workloads that may be 
        transferred as a result of a public-private competition 
        carried out under section 2469a of such title, as 
        described in paragraph (3)).
    (d) Review Regarding Award for C-5 Aircraft Workload.--(1) 
The Comptroller General shall conduct a review of the award for 
the performance of the C-5 aircraft workload that was made to 
Warner Robins Air Logistics Center. As part of the review, the 
Comptroller General shall--
            (A) determine whether the procedures used to 
        conduct the competition--
                    (i) provided substantially equal 
                opportunity for public and private offerors to 
                compete for the award without regard to the 
                location at which the workload is to be 
                performed; and
                    (ii) are in compliance with the 
                requirements of all applicable provisions of 
                law and the Federal Acquisition Regulation; and
            (B) determine whether that award results in the 
        lowest total cost to the Department of Defense for 
        performance of the workload.
    (2) Not later than 60 days after the date of the enactment 
of this Act, the Comptroller General shall submit to Congress a 
report containing the results of the review.

SEC. 360. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT EMPLOYEES 
                    BY CONSTRAINTS ON PERSONNEL LEVELS.

    Section 2472(a) of title 10, United States Code, is amended 
by striking out the first sentence and inserting in lieu 
thereof the following: ``The civilian employees of the 
Department of Defense, including the civilian employees of the 
military departments and the Defense Agencies, who perform, or 
are involved in the performance of, depot-level maintenance and 
repair workloads may not be managed on the basis of any 
constraint or limitation in terms of man years, end strength, 
full-time equivalent positions, or maximum number of 
employees.''.

SEC. 361. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

    (a) Designation and Purpose.--(1) Chapter 146 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 2474. Centers of Industrial and Technical Excellence: 
                    designation; public-private partnerships

    ``(a) Designation.--(1) The Secretary of Defense shall 
designate each depot-level activity of the military departments 
and the Defense Agencies (other than facilities approved for 
closure or major realignment under the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note)) as a Center of Industrial and 
Technical Excellence in the recognized core competencies of the 
activity.
    ``(2) The Secretary shall establish a policy to encourage 
the Secretary of each military department and the head of each 
Defense Agency to reengineer industrial processes and adopt 
best-business practices at their depot-level activities in 
connection with their core competency requirements, so as to 
serve as recognized leaders in their core competencies 
throughout the Department of Defense and in the national 
technology and industrial base (as defined in section 2500(1) 
of this title).
    ``(3) The Secretary of a military department may conduct a 
pilot program, consistent with applicable requirements of law, 
to test any practices referred to in paragraph (2) that the 
Secretary determines could improve the efficiency and 
effectiveness of depot-level operations, improve the support 
provided by depot-level activities for the armed forces user of 
the services of such activities, and enhance readiness by 
reducing the time that it takes to repair equipment.
    ``(b) Public-Private Partnerships.--The Secretary of 
Defense shall enable Centers of Industrial and Technical 
Excellence to enter into public-private cooperative 
arrangements for the performance of depot-level maintenance and 
repair at such Centers and shall encourage the use of such 
arrangements to maximize the utilization of the capacity at 
such Centers. A public-private cooperative arrangement under 
this subsection shall be known as a `public-private 
partnership'.
    ``(c) Crediting of Amounts for Performance.--Amounts 
received by a Center for work performed under a public-private 
partnership shall be credited to the appropriation or fund, 
including a working-capital fund, that incurs the cost of 
performing the work.
    ``(d) Additional Work.--The policy required under 
subsection (a) shall include measures to enable a private 
sector entity that enters into a partnership arrangement under 
subsection (b) or leases excess equipment and facilities at a 
Center of Industrial and Technical Excellence pursuant to 
section 2471 of this title to perform additional work at the 
Center, subject to the limitations outlined in subsection (b) 
of such section, outside of the types of work normally assigned 
to the Center.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``2474. Centers of Industrial and Technical Excellence: designation; 
          public-private partnerships.''.

    (b) Lease of Excess Depot-Level Equipment and Facilities.--
(1) Section 2471(c) of such title is amended to read as 
follows:
    ``(c) Conformance With Authority Under Section 2667.--The 
provisions of subsection (d) of section 2667 of this title 
shall apply to this section in the same manner as such 
provisions are applicable under that section.''.
    (2) Section 2667(d)(2) of such title is amended by 
inserting ``or working capital fund'' before ``from which''.
    (c) Reporting Requirement.--Not later than March 1, 1999, 
the Secretary of Defense shall submit to Congress a report on 
the policies established by the Secretary pursuant to section 
2474 of title 10, United States Code, to implement the 
requirements of such section. The report shall include--
            (1) the details of any public-private partnerships 
        entered into as of that date under subsection (b) of 
        such section;
            (2) the details of any leases entered into as of 
        that date under section 2471 of such title with 
        authorized entities for dual-use (military and 
        nonmilitary) purposes; and
            (3) the effect that the partnerships and leases had 
        on capacity utilization, depot rate structures, and 
        readiness.

SEC. 362. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL 
                    SHIPYARDS TO ENGAGE IN DEFENSE-RELATED PRODUCTION 
                    AND SERVICES.

    Section 1425(e) of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is 
amended by striking out ``September 30, 1997'' and inserting in 
lieu thereof ``September 30, 1999''.

SEC. 363. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN DEPOT-LEVEL 
                    MAINTENANCE AND REPAIR LAWS AND A RELATED REPORTING 
                    REQUIREMENT.

    Section 311 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 247; 10 U.S.C. 
2464 note) is amended by striking out subsections (f) and (g).

SEC. 364. PERSONNEL REDUCTIONS, ARMY DEPOTS PARTICIPATING IN ARMY 
                    WORKLOAD AND PERFORMANCE SYSTEM.

    (a) Limitation.--Except as necessary to implement BRAC 1995 
decisions at Red River Army Depot, Texas, and Letterkenny Army 
Depot, Pennsylvania, the Secretary of the Army may not initiate 
a reduction in force of civilian employees at the five Army 
depots participating in the demonstration and testing of the 
Army Workload and Performance System until after the date on 
which the Secretary submits to Congress a report certifying 
that the Army Workload and Performance System is fully 
operational.
    (b) BRAC 1995 Decisions Defined.--The term ``BRAC 1995 
decisions'' means the decisions to close or realign certain 
military installations resulting from the recommendations 
approved in 1995 under the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note).

SEC. 365. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES AMONG 
                    DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR 
                    FACILITIES.

    (a) Report.--Not later than May 31, 1998, the Secretary of 
Defense shall submit to Congress a report on the allocation 
among facilities of the Department of Defense and facilities in 
the private sector of the logistics activities that are 
necessary to maintain and repair the weapon systems and other 
military equipment identified by the Secretary, in consultation 
with the Chairman of the Joint Chiefs of Staff, as being 
necessary to enable the Armed Forces to conduct a strategic or 
major theater war.
    (b) Elements.--The report under subsection (a) shall set 
forth the following:
            (1) The systems or equipment identified under 
        subsection (a) that must be maintained and repaired in 
        Government-owned, Government-operated facilities, using 
        personnel and equipment of the Department, as a result 
        of the Secretary's determination that--
                    (A) the work involves unique or valuable 
                workforce skills that should be maintained in 
                the public sector in the national interest;
                    (B) the base of private sector sources 
                having the capability to perform the workloads 
                includes industry sectors that are vulnerable 
                to work stoppages;
                    (C) the private sector sources having the 
                capability to perform the workloads have 
                insufficient workforce levels or skills to 
                perform the depot-level maintenance and repair 
                workloads--
                            (i) in the quantity necessary, or 
                        as rapidly as the Secretary considers 
                        necessary, to enable the armed forces 
                        to fulfill the national military 
                        strategy; or
                            (ii) without a significant 
                        disruption or delay in the maintenance 
                        and repair of equipment;
                    (D) the need for performance of workloads 
                is too infrequent, cyclical, or variable to 
                sustain a reliable base of private sector 
                sources having the workforce levels or skills 
                to perform the workloads;
                    (E) the market conditions or workloads are 
                insufficient to ensure that the price of 
                private sector performance of the workloads can 
                be controlled through competition or other 
                means;
                    (F) private sector sources are not 
                adequately responsive to the requirements of 
                the Department for rapid, cost-effective, and 
                flexible response to surge requirements or 
                other contingency situations, including changes 
                in the mix or priority of previously scheduled 
                workloads and reassignment of employees to 
                different workloads without the requirement for 
                additional contractual negotiations;
                    (G) private sector sources are less willing 
                to assume responsibility for performing the 
                workload as a result of the possibility of 
                direct military or terrorist attack; or
                    (H) private sector sources cannot maintain 
                continuity of workforce expertise as a result 
                of high rates of employee turnover.
            (2) The systems or equipment identified under 
        subsection (a) that must be maintained and repaired in 
        Government-owned facilities, whether Government 
        operated or contractor-operated, as a result of the 
        Secretary's determination that--
                    (A) the work involves facilities, 
                technologies, or equipment that are unique and 
                sufficiently valuable that the facilities, 
                technologies, or equipment must be maintained 
                in the public sector in the national interest;
                    (B) the private sector sources having the 
                capability to perform the workloads have 
                insufficient facilities, technology, or 
                equipment to perform the depot-level 
                maintenance and repair workloads--
                            (i) in the quantity necessary, or 
                        as rapidly as the Secretary considers 
                        necessary, to enable the armed forces 
                        to fulfill the national military 
                        strategy; or
                            (ii) without a significant 
                        disruption or delay in the maintenance 
                        and repair of equipment; or
                    (C) the need for performance of workloads 
                is too infrequent, cyclical, or variable to 
                sustain a reliable base of private sector 
                sources having the facilities, technology, or 
                equipment to perform the workloads.
            (3) The systems or equipment identified under 
        subsection (a) that may be maintained and repaired in 
        private sector facilities.
            (4) The approximate percentage of the total 
        maintenance and repair workload of the Department of 
        Defense necessary for the systems and equipment 
        identified under subsection (a) that would be performed 
        at Department of Defense facilities, and at private 
        sector facilities, as a result of the determinations 
        made for purposes of paragraphs (1), (2), and (3).

SEC. 366. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR SHIP REPAIR 
                    AND MAINTENANCE.

    (a) Findings.--Congress makes the following findings:
            (1) In order to reduce the time that the crew of a 
        naval vessel is away from the homeport of the vessel, 
        the Navy seeks to perform ship repair and maintenance 
        of the vessel at the homeport of the vessel whenever it 
        takes six months or less to accomplish the work 
        involved.
            (2) At the same time, the Navy seeks to distribute 
        ship repair and maintenance work among the Navy 
        shipyards (known as to ``level load'') in order to more 
        fully utilize personnel resources.
            (3) During periods when a Navy shipyard is not 
        utilized to its capacity, the Navy sometimes sends 
        workers at the shipyard, on a temporary duty basis, to 
        perform ship repairs and maintenance at a homeport not 
        having a Navy shipyard.
            (4) This practice is a more efficient use of 
        civilian employees who might otherwise not be fully 
        employed on work assigned to Navy shipyards.
    (b) Comptroller General Review and Report.--(1) The 
Comptroller General shall review the Navy's practice of using 
temporary duty assignments of personnel to perform ship 
maintenance and repair work at homeports not having Navy 
shipyards. The review shall include the following:
            (A) An assessment of the rationale, conditions, and 
        factors supporting the Navy's practice.
            (B) A determination of whether the practice is 
        cost-effective.
            (C) The factors affecting future requirements for, 
        and the adherence to, the practice, together with an 
        assessment of the factors.
    (2) Not later than May 1, 1998, the Comptroller General 
shall submit a report on the review to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives.

SEC. 367. SENSE OF CONGRESS REGARDING REALIGNMENT OF PERFORMANCE OF 
                    GROUND COMMUNICATION-ELECTRONIC WORKLOAD.

    It is the sense of Congress that the transfer of the ground 
communication-electronic workload to Tobyhanna Army Depot, 
Pennsylvania, in the realignment of the performance of such 
function should be carried out in adherence to the schedule 
prescribed for that transfer by the Defense Depot Maintenance 
Council on March 13, 1997, as follows:
            (1) Transfer of 20 percent of the workload in 
        fiscal year 1998.
            (2) Transfer of 40 percent of the workload in 
        fiscal year 1999.
            (3) Transfer of 40 percent of the workload in 
        fiscal year 2000.

  Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 371. REORGANIZATION OF LAWS REGARDING COMMISSARIES AND EXCHANGES 
                    AND OTHER MORALE, WELFARE, AND RECREATION 
                    ACTIVITIES.

    (a) Description of Chapter.--(1) The heading of chapter 147 
of title 10, United States Code, is amended to read as follows:

 ``CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, 
                      AND RECREATION ACTIVITIES''.

    (2) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part IV of subtitle A, of such title 
are amended by striking out the item relating to chapter 147 
and inserting in lieu thereof the following new item:

``147. Commissaries and Exchanges and Other Morale, Welfare, and 
              Recreation Activities..............................2481''.

    (b) Transfer and Redesignation of Unrelated Provisions.--
(1) Section 2481 of title 10, United States Code, is 
transferred to chapter 159 of such title, inserted after 
section 2685, and redesignated as section 2686.
    (2) Sections 2483 and 2490 of such title are transferred to 
the end of subchapter III of chapter 169 of such title and 
redesignated as sections 2867 and 2868, respectively.
    (3) Section 2491 of such title is redesignated as section 
2500.
    (c) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 147 of title 10, United States Code, is 
amended by striking out the items relating to sections 2481, 
2483, and 2490.
    (2) The table of sections at the beginning of chapter 159 
of such title is amended by inserting after the item relating 
to section 2685 the following new item:

``2686. Utilities and services: sale; expansion and extension of systems 
          and facilities.''.

    (3) The table of sections at the beginning of subchapter 
III of chapter 169 of such title is amended by adding at the 
end the following new items:

``2867. Sale of electricity from alternate energy and cogeneration 
          production facilities.
``2868. Utility services: furnishing for certain buildings.''.

    (4) The table of sections at the beginning of subchapter I 
of chapter 148 of such title is amended by striking out the 
item relating to section 2491 and inserting in lieu thereof the 
following new item:

``2500. Definitions.''.

    (5) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part IV of subtitle A, of such title 
are amended by striking out the item relating to chapter 148 
and inserting in lieu thereof the following new item:

``148. National Defense Technology and Industrial Base, Defense 
              Reinvestment, and Defense Conversion...............2500''.

    (d) Conforming Amendments.--(1) Section 2534(d) of title 
10, United States Code, is amended by striking out ``section 
2491(1)'' both places it appears and inserting in lieu thereof 
``section 2500(1)''.
    (2) Section 2865(b)(2) of such title is amended by striking 
out ``section 2483(b)(2)'' and inserting in lieu thereof 
``section 2867(b)(2)''.

SEC. 372. MERCHANDISE AND PRICING REQUIREMENTS FOR COMMISSARY STORES.

    (a) Authorized Commissary Merchandise Categories.--
Subsection (b) of section 2486 of title 10, United States Code, 
is amended--
            (1) by striking out the matter preceding paragraph 
        (1) and inserting in lieu thereof the following: ``(b) 
        Authorized Commissary Merchandise Categories.--
        Merchandise sold in, at, or by commissary stores may 
        include items only in the following categories:''; and
            (2) by striking out paragraph (11) and inserting in 
        lieu thereof the following new paragraph:
            ``(11) Such other merchandise categories as the 
        Secretary of Defense may prescribe, except that the 
        Secretary shall submit to Congress, not later than 
        March 1 of each year, a report describing--
                    ``(A) any addition of, or change in, a 
                merchandise category proposed to be made under 
                this paragraph during the one-year period 
                beginning on that date; and
                    ``(B) those additions and changes in 
                merchandise categories actually made during the 
                preceding one-year period.''.
    (b) Codification of Uniform Sales Price Surcharge or 
Adjustment.--Subsection (c) of such section is amended--
            (1) by inserting ``Uniform Sales Price Surcharge or 
        Adjustment.--'' after ``(c)'';
            (2) by striking out ``in commissary stores.'' and 
        inserting in lieu thereof ``in, at, or by commissary 
        stores.''; and
            (3) by adding at the end the following new 
        sentence: ``Effective on the date of the enactment of 
        the National Defense Authorization Act for Fiscal Year 
        1998, the uniform percentage shall be equal to five 
        percent and may not be changed except by a law enacted 
        after such date.''.
    (c) Establishment of Sales Price; Congressional 
Notification.--Subsection (d) of such section is amended to 
read as follows:
    ``(d) Sales Price Establishment.--(1) The Secretary of 
Defense shall establish the sales price of each item of 
merchandise sold in, at, or by commissary stores at the level 
that will recoup the actual product cost of the item 
(consistent with this section and sections 2484 and 2685 of 
this title).
    ``(2) Any change in the pricing policies for merchandise 
sold in, at, or by commissary stores shall not take effect 
until the Secretary of Defense submits written notice of the 
proposed change to Congress and a period of 90 days of 
continuous session of Congress expires following the date on 
which notice was received. For purposes of this paragraph, the 
continuity of a session of Congress is broken only by an 
adjournment of the Congress sine die, and the days on which 
either House is not in session because of an adjournment or 
recess of more than three days to a day certain are excluded in 
a computation of such 90-day period.''.
    (d) Special Rules for Certain Merchandise.--Such section is 
further amended by adding at the end the following new 
subsection:
    ``(f) Special Rules for Certain Merchandise.--(1) 
Notwithstanding the general requirement that merchandise sold 
in, at, or by commissary stores be commissary store inventory, 
the Secretary of Defense may authorize the sale of items in the 
merchandise categories specified in paragraph (2) as 
noncommissary store inventory. Subsections (c) and (d) shall 
not apply to the pricing of such merchandise items.
    ``(2) The merchandise categories referred to in paragraph 
(1) are as follows:
            ``(A) Magazines and other periodicals.
            ``(B) Tobacco products.''.
    (e) Clerical and Conforming Amendments.--Such section is 
further amended--
            (1) in subsection (a), by inserting ``In General.--
        '' after ``(a)''; and
            (2) in subsection (e)--
                    (A) by inserting ``Special Rule for Brand-
                Name Commercial Items.--'' after ``(e)''; and
                    (B) by striking out ``in commissary 
                stores'' both places it appears and inserting 
                in lieu thereof ``in, at, or by commissary 
                stores''.
    (f) Report on Merchandise Categories.--Not later than 30 
days after the date of the enactment of this Act, the Secretary 
of Defense shall submit to Congress a report specifying the 
merchandise categories authorized for sale sold in, at, or by 
commissary stores pursuant to regulations prescribed under 
subsection (b)(11) of section 2486 of title 10, United States 
Code, as in effect before such date.

SEC. 373. LIMITATION ON NONCOMPETITIVE PROCUREMENT OF BRAND-NAME 
                    COMMERCIAL ITEMS FOR RESALE IN COMMISSARY STORES.

    Section 2486(e) of title 10, United States Code, as amended 
by section 372(e)(2), is further amended by adding at the end 
the following new sentence: ``In determining whether a brand 
name commercial item is regularly sold outside of commissary 
stores, the Secretary shall consider only sales of the item on 
a regional or national basis by commercial grocery or other 
retail operations consisting of multiple stores.''.

SEC. 374. TREATMENT OF REVENUES DERIVED FROM COMMISSARY STORE 
                    ACTIVITIES.

    (a) Treatment of Revenues.--Section 2685 of title 10, 
United States Code, is amended by adding at the end the 
following new subsection:
    ``(e) Other Sources of Funds for Construction and 
Improvements.--Revenues received by the Secretary of Defense 
from the following sources or activities of commissary store 
facilities shall be available for the purposes set forth in 
subsections (b), (c), and (d):
            ``(1) Sale of recyclable materials.
            ``(2) Sale of excess and surplus property.
            ``(3) License fees.
            ``(4) Royalties.
            ``(5) Fees paid by sources of products in order to 
        obtain favorable display of the products for resale, 
        known as business related management fees.''.
    (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Adjustment or 
        Surcharge Authorized.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Use for 
        Construction and Improvement of Facilities.--'' after 
        ``(b)'';
            (3) in subsection (c), by inserting ``Advance 
        Obligation.--'' after ``(c)''; and
            (4) in subsection (d), by inserting ``Cooperation 
        With Nonappropriated Fund Instrumentalities.--'' after 
        ``(d)''.

SEC. 375. MAINTENANCE, REPAIR, AND RENOVATION OF ARMED FORCES 
                    RECREATION CENTER, EUROPE.

    Section 2247(b) of title 10, United States Code, is amended 
by striking out ``real property maintenance, and'' and 
inserting in lieu thereof ``the maintenance, repair, or 
renovation of real property, and the''.

SEC. 376. PLAN FOR USE OF PUBLIC AND PRIVATE PARTNERSHIPS TO BENEFIT 
                    MORALE, WELFARE, AND RECREATION ACTIVITIES.

    (a) Plan Required.--The Secretary of Defense shall prepare 
a plan containing a proposal regarding the advisability and 
feasibility of permitting nonappropriated fund 
instrumentalities of the Department of Defense to enter into 
leases, licensing agreements, concession agreements, and other 
contracts with private persons and State or local governments 
to facilitate the provision of facilities, goods, or services 
to authorized patrons of nonappropriated fund instrumentalities 
and to generate revenues for the Department of Defense to be 
used solely for the benefit of nonappropriated fund 
instrumentalities.
    (b) Recommendations for Scope of Plan.--In developing the 
proposal under subsection (a), the Secretary shall include 
recommendations regarding the following:
            (1) The proposed criteria to be used to select 
        goods or services suitable for provision to patrons of 
        nonappropriated fund instrumentalities through a lease 
        or other contractual arrangement.
            (2) The proposed mechanism to be used to assess the 
        likely impact of such a lease or other contractual 
        arrangement on private businesses in the locality that 
        provide the same goods or services proposed to be 
        provided under such a lease or other contractual 
        arrangement.
            (3) The feasibility and desirability of authorizing 
        persons who are not authorized patrons of 
        nonappropriated fund instrumentalities to receive goods 
        and services provided through such a lease or other 
        contractual arrangement.
            (4) The proposed mechanism to be used to ensure 
        that such a lease or contract will not be inconsistent 
        with and will not adversely affect the mission of the 
        Department of Defense or the nonappropriated fund 
        instrumentality involved.
    (c) Submission of Plan.--Not later than March 1, 1998, the 
Secretary shall submit to Congress the plan required under 
subsection (a).

                       Subtitle F--Other Matters

SEC. 381. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
                    DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND 
                    DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for 
Fiscal Year 1998.--Of the amount authorized to be appropriated 
pursuant to section 301(5) for operation and maintenance for 
Defense-wide activities--
            (1) $30,000,000 shall be available for providing 
        educational agencies assistance (as defined in 
        subsection (d)(1)) to local educational agencies; and
            (2) $5,000,000 shall be available for making 
        educational agencies payments (as defined in subsection 
        (d)(2)) to local educational agencies.
    (b) Notification.--Not later than June 30, 1998, the 
Secretary of Defense shall--
            (1) notify each local educational agency that is 
        eligible for educational agencies assistance for fiscal 
        year 1998 of that agency's eligibility for such 
        assistance and the amount of such assistance for which 
        that agency is eligible; and
            (2) notify each local educational agency that is 
        eligible for an educational agencies payment for fiscal 
        year 1998 of that agency's eligibility for such payment 
        and the amount of the payment for which that agency is 
        eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall 
disburse funds made available under paragraphs (1)and (2) of 
subsection (a) not later than 30 days after the date on which 
notification to the eligible local educational agencies is provided 
pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' 
        means assistance authorized under section 386(b) of the 
        National Defense Authorization Act for Fiscal Year 1993 
        (Public Law 102-484; 20 U.S.C. 7703 note).
            (2) The term ``educational agencies payments'' 
        means payments authorized under section 386(d) of the 
        National Defense Authorization Act for Fiscal Year 1993 
        (Public Law 102-484; 20 U.S.C. 7703 note).
            (3) The term ``local educational agency'' has the 
        meaning given that term in section 8013(9) of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7713(9)).
    (e) Technical Correction Relating to Original Assistance 
Authority.--Section 386(c)(1) of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 
U.S.C. 7703 note) is amended--
            (1) by striking out ``section 8003(a)'' and 
        inserting in lieu thereof ``section 8003(a)(1)''; and
            (2) by striking out ``(20 U.S.C. 7703(a))'' and 
        inserting in lieu thereof ``(20 U.S.C. 7703(a)(1))''.

SEC. 382. CENTER FOR EXCELLENCE IN DISASTER MANAGEMENT AND HUMANITARIAN 
                    ASSISTANCE.

    (a) Establishment and Operation of Center.--(1) Chapter 7 
of title 10, United States Code, is amended by adding at the 
end the following new section:

``Sec. 182. Center for Excellence in Disaster Management and 
                    Humanitarian Assistance

    ``(a) Establishment.--The Secretary of Defense may operate 
a Center for Excellence in Disaster Management and Humanitarian 
Assistance (in this section referred to as the `Center').
    ``(b) Missions.--(1) The Center shall be used to provide 
and facilitate education, training, and research in civil-
military operations, particularly operations that require 
international disaster management and humanitarian assistance 
and operations that require coordination between the Department 
of Defense and other agencies.
    ``(2) The Center shall be used to make available high-
quality disaster management and humanitarian assistance in 
response to disasters.
    ``(3) The Center shall be used to provide and facilitate 
education, training, interagency coordination, and research on 
the following additional matters:
            ``(A) Management of the consequences of nuclear, 
        biological, and chemical events.
            ``(B) Management of the consequences of terrorism.
            ``(C) Appropriate roles for the reserve components 
        in the management of such consequences and in disaster 
        management and humanitarian assistance in response to 
        natural disasters.
            ``(D) Meeting requirements for information in 
        connection with regional and global disasters, 
        including the use of advanced communications technology 
        as a virtual library.
            ``(E) Tropical medicine, particularly in relation 
        to the medical readiness requirements of the Department 
        of Defense.
    ``(4) The Center shall develop a repository of disaster 
risk indicators for the Asia-Pacific region.
    ``(5) The Center shall perform such other missions as the 
Secretary of Defense may specify.
    ``(c) Joint Operation With Educational Institution 
Authorized.--The Secretary of Defense may enter into an 
agreement with appropriate officials of an institution of 
higher education to provide for joint operation of the Center. 
Any such agreement shall provide for the institution to furnish 
necessary administrative services for the Center, including 
administration and allocation of funds.
    ``(d) Acceptance of Donations.--(1) Except as provided in 
paragraph (2), the Secretary of Defense may accept, on behalf 
of the Center, donations to be used to defray thecosts of the 
Center or to enhance the operation of the Center. Such donations may be 
accepted from any agency of the Federal Government, any State or local 
government, any foreign government, any foundation or other charitable 
organization (including any that is organized or operates under the 
laws of a foreign country), or any other private source in the United 
States or a foreign country.
    ``(2) The Secretary may not accept a donation under 
paragraph (1) if the acceptance of the donation would 
compromise or appear to compromise--
            ``(A) the ability of the Department of Defense, any 
        employee of the Department, or members of the armed 
        forces, to carry out any responsibility or duty of the 
        Department in a fair and objective manner; or
            ``(B) the integrity of any program of the 
        Department of Defense or of any person involved in such 
        a program.
    ``(3) The Secretary shall prescribe written guidance 
setting forth the criteria to be used in determining whether or 
not the acceptance of a foreign donation would have a result 
described in paragraph (2).
    ``(4) Funds accepted by the Secretary under paragraph (1) 
as a donation on behalf of the Center shall be credited to 
appropriations available to the Department of Defense for the 
Center. Funds so credited shall be merged with the 
appropriations to which credited and shall be available for the 
Center for the same purposes and the same period as the 
appropriations with which merged.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``182. Center for Excellence in Disaster Management and Humanitarian 
          Assistance.''.

    (b) Funding for Fiscal Year 1998.--Of the funds authorized 
to be appropriated pursuant to section 301(5) for operation and 
maintenance for Defense-wide activities, $5,000,000 shall be 
available for the operation of the Center for Excellence in 
Disaster Management and Humanitarian Assistance established 
under section 182 of title 10, United States Code, as added by 
subsection (a).

SEC. 383. APPLICABILITY OF FEDERAL PRINTING REQUIREMENTS TO DEFENSE 
                    AUTOMATED PRINTING SERVICE.

    (a) In General.--Subchapter I of chapter 8 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 195. Defense Automated Printing Service: applicability of 
                    Federal printing requirements

    ``The Defense Automated Printing Service shall comply fully 
with the requirements of section 501 of title 44 relating to 
the production and procurement of printing, binding, and blank-
book work.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such subchapter is amended by adding at the end 
the following new item:

``195. Defense Automated Printing Service: applicability of Federal 
          printing requirements.''.

SEC. 384. STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION OF 
                    COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO 
                    CONTRACTOR PERFORMANCE.

    (a) Additional Notification Requirement.--Subsection (a)(1) 
of section 2461 of title 10, United States Code, is amended by 
inserting before the semicolon the following: ``and the 
anticipated length and cost of the study''.
    (b) Notification of Conversion Decision.--Subsection (b) of 
such section amended by adding at the end the following new 
sentence: ``The notification shall include the timetable for 
completing conversion of the function to contractor 
performance.''.
    (c) Waiver for Small Functions.--Subsection (d) of such 
section is amended by striking out ``45 or fewer'' and 
inserting in lieu thereof ``20 or fewer''.

SEC. 385. COLLECTION AND RETENTION OF COST INFORMATION DATA ON 
                    CONVERTED SERVICES AND FUNCTIONS.

    (a) Collection and Retention Required.--Section 2463 of 
title 10, United States Code, is amended to read as follows:

``Sec. 2463. Collection and retention of cost information data on 
                    converted services and functions

    ``(a) Requirements In Connection With Conversion to 
Contractor Performance.--With respect to each contract 
converting the performance of a service or function of the 
Department of Defense to contractor performance (and any 
extension of such a contract), the Secretary of Defense shall 
collect, during the term of the contract or extension, but not 
to exceed five years, cost information data regarding 
performance of the service or function by private contractor 
employees.
    ``(b) Requirements In Connection With Return to Employee 
Performance.--Whenever the performance of a commercial or 
industrial type activity of the Department of Defense that is 
being performed by 50 or more employees of a private contractor 
is changed to performance by civilian employees of the 
Department of Defense, the Secretary of Defense shall collect, 
for a five-year period, cost information data comparing--
            ``(1) the estimated costs of continued performance 
        of such activity by private contractor employees; and
            ``(2) the costs of performance of such activity by 
        civilian employees of the Department of Defense.
    ``(c) Retention of Information.--With regard to the 
conversion to or from contractor performance of a particular 
service or function of the Department of Defense, the Secretary 
of Defense shall provide for the retention of information 
collected under this section for at least a 10-year period 
beginning at the end of the final year in which the information 
is collected.''.
    (b) Clerical Amendment.--The item relating to such section 
in the table of sections at the beginning of chapter 146 of 
title 10, United States Code, is amended to read as follows:

``2463. Collection and retention of cost information data on converted 
          services and functions.''.

SEC. 386. FINANCIAL ASSISTANCE TO SUPPORT ADDITIONAL DUTIES ASSIGNED TO 
                    ARMY NATIONAL GUARD.

    (a) Authority.--Chapter 1 of title 32, United States Code, 
is amended by adding at the end the following new section:

``Sec. 113. Federal financial assistance for support of additional 
                    duties assigned to the Army National Guard

    ``(a) Authority.--The Secretary of the Army may provide 
financial assistance to a State to support activities carried 
out by the Army National Guard of the State in the performance 
of duties that the Secretary has assigned, with the consent of 
the Chief of the National Guard Bureau, to the Army National 
Guard of the State. The Secretary shall determine the amount of 
the assistance that is appropriate for the purpose.
    ``(b) Covered Activities.--Activities supported under this 
section may include only those activities that are carried out 
by the Army National Guard in the performance of 
responsibilities of the Secretary of the Army under paragraphs 
(6), (10), and (11) of section 3013(b) of title 10.
    ``(c) Disbursement Through National Guard Bureau.--The 
Secretary of the Army shall disburse any contribution under 
this section through the Chief of the National Guard Bureau.
    ``(d) Availability of Funds.--Funds appropriated for the 
Army for a fiscal year are available for providing financial 
assistance under this section in support of activities carried 
out by the Army National Guard during that fiscal year.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``113. Federal financial assistance for support of additional duties 
          assigned to the Army National Guard.''.

SEC. 387. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.

    (a) Extension of Requirement to Use Private-Sector 
Sources.--Subsection (a) of section 351 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 266) is amended--
            (1) by striking out ``and 1997'' and inserting in 
        lieu thereof ``through 1998''; and
            (2) by striking out ``Defense Printing Service'' 
        and inserting in lieu thereof ``Defense Automated 
        Printing Service''.
    (b) Surcharge for Services.--Such section is further 
amended by adding at the end the following new subsection:
    ``(d) Conditions on Imposition of Surcharge.--(1) Any 
surcharge imposed by the Defense Automated Printing Service on 
printing and duplication services for the Department of Defense 
shall be based on direct services provided by the Defense 
Automated Printing Service and reflect the costs incurred by 
the Defense Automated Printing Service, as described in its 
annual budget.
    ``(2) The Defense Automated Printing Service may not impose 
a surcharge on any printing and duplication service for the 
Department of Defense that is procured from a source outside of 
the Department.''.
    (c) Authority To Procure Services From Government Printing 
Office.--Consistent with section 501 of title 44, United States 
Code, the Secretary of a military department or head of a 
Defense Agency may contract directly with the Government 
Printing Office for printing and duplication services otherwise 
available through the Defense Automated Printing Service.

SEC. 388. CONTINUATION AND EXPANSION OF DEMONSTRATION PROGRAM TO 
                    IDENTIFY OVERPAYMENTS MADE TO VENDORS.

    (a) Scope of Program.--Section 354 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 268; 10 U.S.C. 2461 note) is amended--
            (1) in subsection (a), by striking out the second 
        sentence; and
            (2) in subsection (b)(1), by striking out ``of the 
        Defense Logistics Agency that relate to (at least) 
        fiscal years 1993, 1994, and 1995'' and inserting in 
        lieu thereof ``relating to fiscal years after fiscal 
        year 1993 of the working-capital funds and industrial, 
        commercial, and support type activities managed through 
        the Defense Business Operations Fund, except the 
        Defense Logistics Agency to the extent such records 
        have already been audited''.
    (b) Collection Method; Contractor Payments.--Such section 
is further amended by striking out subsections (d) and (e) and 
inserting in lieu thereof the following new subsections:
    ``(d) Collection Method.--(1) In the case of an overpayment 
to a vendor identified under the demonstration program, the 
Secretary shall consider the use of the procedures specified in 
section 32.611 of the Federal Acquisition Regulation, regarding 
a setoff against existing invoices for payment to the vendor, 
as the first method by which the Department seeks to recover 
the amount of the overpayment (and any applicable interest and 
penalties) from the vendor.
    ``(2) The Secretary of Defense shall be solely responsible 
for notifying a vendor of an overpayment made to the vendor and 
identified under the demonstration program and for recovering 
the amount of the overpayment (and any applicable interest and 
penalties) from the vendor.
    ``(e) Fees for Contractor.--The Secretary shall pay to the 
contractor under the contract entered into under the 
demonstration program an amount not to exceed 25 percent of the 
total amount recovered by the Department (through the 
collection of overpayments and the use of setoffs) solely on 
the basis of information obtained as a result of the audits 
performed by the contractor under the program. When an 
overpayment is recovered through the use of a setoff, amounts 
for the required payment to the contractor shall be derived 
from funds available to the working-capital fund or industrial, 
commercial, or support type activity for which the overpayment 
is recovered.''.
    (c) GAO Review.--Not later than December 31, 1998, the 
Comptroller General shall submit to Congress a report 
containing the results of a review by the Comptroller General 
of the demonstration program conducted under section 354 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 10 U.S.C. 2461 note). In the review, the 
Comptroller General shall--
            (1) assess the success of the methods used in the 
        demonstration program to identify overpayments made to 
        vendors;
            (2) consider the types of overpayments identified 
        and the feasibility of avoiding such overpayments 
        through contract adjustments;
            (3) determine the total amount of overpayments 
        recovered under the demonstration program; and
            (4) develop recommendations for improving the 
        process by which overpayments are recovered by the 
        Department of Defense.

SEC. 389. DEVELOPMENT OF STANDARD FORMS REGARDING PERFORMANCE WORK 
                    STATEMENT AND REQUEST FOR PROPOSAL FOR CONVERSION 
                    OF CERTAIN OPERATIONAL FUNCTIONS OF MILITARY 
                    INSTALLATIONS.

    (a) Standardization of Requirements.--The Secretary of 
Defense is authorized and encouraged to develop standard forms 
(to be known as a ``standard performance work statement'' and a 
``standard request for proposal'') for use in the consideration 
for conversion to contractor performance of commercial services 
and functions at military installations. A separate standard 
form shall be developed for each service and function.
    (b) Relationship to OMB Requirements.--A standard 
performance work statement or a standard request for proposal 
developed under subsection (a) must fulfill the basic 
requirements of the performance work statement or request for 
proposal otherwise required under the procedures and 
requirements of Office of Management and Budget Circular A-76 
(or any successor administrative regulation or policy) in 
effect at the time the standard form will be used.
    (c) Priority Development of Certain Forms.--In developing 
standard performance work statements and standard requests for 
proposal, the Secretary shall give first priority to those 
commercial services and functions that the Secretary determines 
have been successfully converted to contractor performance on a 
repeated basis.
    (d) Incentive for Use.--Beginning not later than October 1, 
1998, if a standard performance work statement or a standard 
request for proposal is developed under subsection (a) for a 
particular service and function, the standard form may be used 
in lieu of the performance work statement or request for 
proposal otherwise required under the procedures and 
requirements of Office of Management and Budget Circular A-76 
in connection with the consideration for conversion to 
contractor performance of that service or function at a 
military installation.
    (e) Exclusion of Multi-Function Conversion.--If a 
commercial service or function for which a standard form is 
developed under subsection (a) is combined with another service 
or function (for which such a form has not yet been developed) 
for purposes of considering the services and functions at the 
military installation for conversion to contractor performance, 
a standard performance work statement or a standard request for 
proposal developed under subsection (a) may not be used in the 
conversion process in lieu of the procedures and requirements 
of Office of Management and Budget Circular A-76.
    (f) Effect on Other Laws.--Nothing in this section shall be 
construed to supersede any other requirements or limitations, 
specifically contained in chapter 146 of title 10, United 
States Code, on the conversion to contractor performance of 
activities performed by civilian employees of the Department of 
Defense.
    (g) GAO Report.--Not later than June 1, 1999, the Secretary 
of Defense shall submit to Congress a report reviewing the 
implementation of this section.
    (h) Military Installation Defined.--For purposes of this 
section, the term ``military installation'' means a base, camp, 
post, station, yard, center, homeport facility for any ship, or 
other activity under the jurisdiction of the Department of 
Defense, including any leased facility.

SEC. 390. BASE OPERATIONS SUPPORT FOR MILITARY INSTALLATIONS ON GUAM.

    (a) Contractor Use of Nonimmigrant Aliens.--Each contract 
for base operations support to be performed on Guam shall 
contain a condition that work under the contract may not be 
performed by any alien who is issued a visa or otherwise 
provided nonimmigrant status under section 101(a)(15)(H)(ii) of 
the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(H)(ii)).
    (b) Application of Section.--This section shall apply to 
contracts entered into, amended, or otherwise modified on or 
after the date of the enactment of this Act.

SEC. 391. WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

    (a) Pilot Program Required.--The Secretary of Defense may 
carry out a pilot program to use commercial sources of services 
to improve the collection of Department of Defense claims under 
aircraft engine warranties.
    (b) Contracts.--Exercising the authority provided in 
section 3718 of title 31, United States Code, the Secretary of 
Defense may enter into contracts under the pilot program to 
provide for the following services:
            (1) Collection services.
            (2) Determination of amounts owed the Department of 
        Defense for repair of aircraft engines for conditions 
        covered by warranties.
            (3) Identification and location of the sources of 
        information that are relevant to collection of 
        Department of Defense claims under aircraft engine 
        warranties, including electronic data bases and 
        document filing systems maintained by the Department of 
        Defense or by the manufacturers and suppliers of the 
        aircraft engines.
            (4) Services to define the elements necessary for 
        an effective training program to enhance and improve 
        the performance of Department of Defense personnel in 
        collecting and organizing documents and other 
        information that are necessary for efficient filing, 
        processing, and collection of Department of Defense 
        claims under aircraft engine warranties.
    (c) Contractor Fee.--Under the authority provided in 
section 3718(d) of title 31, United States Code, a contract 
entered into under the pilot program shall provide for the 
contractor to be paid, out of the amount recovered by the 
contractor under the program, such percentages of the amount 
recovered as the Secretary of Defense determines appropriate.
    (d) Retention of Recovered Funds.--Subject to any 
obligation to pay a fee under subsection (c), any amount 
collected for the Department of Defense under the pilot program 
for a repair of an aircraft engine for a condition covered by a 
warranty shall be credited to an appropriation available for 
repair of aircraft engines for the fiscal year in which 
collected and shall be available for the same purposes and same 
period as the appropriation to which credited.
    (e) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.
    (f) Termination of Authority.--The pilot program shall 
terminate on September 30, 1999, and contracts entered into 
under this section shall terminate not later than that date.
    (g) Reporting Requirements.--(1) Not later than January 1, 
2000, the Secretary of Defense shall submit to Congress a 
report on the pilot program. The report shall include the 
following:
            (A) The number of contracts entered into under the 
        program.
            (B) The extent to which the services provided under 
        the contracts resulted in financial benefits for the 
        Federal Government.
            (C) Any additional comments and recommendations 
        that the Secretary considers appropriate regarding use 
        of commercial sources of services for collection of 
        Department of Defense claims under aircraft engine 
        warranties.
    (2) Not later than March 1, 2000, the Comptroller General 
shall submit to Congress a report containing the results of a 
review by the Comptroller General of the pilot program. In the 
review, the Comptroller General shall--
            (A) assess the success of the methods used in the 
        demonstration program to identify and recover 
        Department of Defense claims under aircraft engine 
        warranties;
            (B) determine the total amount recovered by the 
        Department of Defense under the pilot program;
            (C) evaluate the report prepared by the Secretary 
        under paragraph (1); and
            (D) develop recommendations for improving the 
        process by which warranty claims are recovered by the 
        Department of Defense.

SEC. 392. PROGRAM TO INVESTIGATE FRAUD, WASTE, AND ABUSE WITHIN 
                    DEPARTMENT OF DEFENSE.

    The Secretary of Defense shall maintain a specific 
coordinated program for the investigation of evidence of fraud, 
waste, and abuse within the Department of Defense, particularly 
fraud, waste, and abuse regarding finance and accounting 
matters.

SEC. 393. MULTITECHNOLOGY AUTOMATED READER CARD DEMONSTRATION PROGRAM.

    (a) Program Required.--The Secretary of the Navy shall 
carry out a program to demonstrate expanded use of 
multitechnology automated reader cards throughout the Navy and 
the Marine Corps. The demonstration program shall include 
demonstration of the use of the so-called ``smartship'' 
technology of the ship-to-shore work load / off load program of 
the Navy.
    (b) Period of Program.--The Secretary shall carry out the 
demonstration program for two years beginning not later than 
January 1, 1998.
    (c) Report.--Not later than 90 days after termination of 
the demonstration program, the Secretary shall submit to 
Congress a report on the results of the program.
    (d) Funding.--Of the amount authorized to be appropriated 
pursuant to section 301(2) for operation and maintenance for 
the Navy, $36,000,000 shall be available for the demonstration 
program under this section, of which $6,300,000 shall be 
available for demonstration of the use of the so-called 
``smartship'' technology of the ship-to-shore work load / off 
load program of the Navy.

SEC. 394. REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL POINTS.

    (a) Report and Plan Required.--Not later than March 1, 
1998, the Secretary of Defense shall submit to Congress a 
report containing a plan to reduce overhead costs of the supply 
management activities of the Defense Logistics Agency and the 
military departments (known as Inventory Control Points) so 
that the overhead costs for each fiscal year after fiscal year 
2000 do not exceed eight percent of net sales at standard price 
by Inventory Control Points during that year.
    (b) Additional Report Requirement.--In addition to the 
plan, the report shall include the following:
            (1) An identification of inherently governmental, 
        core and noncore functions in Inventory Control Points 
        and Distribution Depots.
            (2) A description of efforts, other than prime 
        vendor and virtual prime vendor, underway or proposed 
        to improve the efficiency, incentives, and 
        accountability in Department of Defense supply, 
        inventory and warehousing services and rates.
            (3) An identification and description of the 
        benchmarks established in the warehousing, 
        distribution, and supply functions of the Department 
        and the relationship of the benchmarks to performance 
        measurement methods used in the private sector.
            (4) A description of the outcome-oriented 
        performance measures that are currently being used to 
        evaluate Inventory Control Points and Distribution 
        Depots.
            (5) A specification of any legislative, regulatory, 
        or operational impediments to achieving the requirement 
        in subsection (a) and implementing best business 
        practices in the warehousing, distribution, and supply 
        functions of the Department.
    (c) Definitions.--For purposes of this section:
            (1) The term ``overhead costs'' means the total 
        expenses of the Inventory Control Points, excluding--
                    (A) annual materiel costs; and
                    (B) military and civilian personnel related 
                costs, defined as personnel compensation and 
                benefits under the March 1996 Department of 
                Defense Financial Management Regulations, 
                Volume 2A, Chapter 1, Budget Account Title File 
                (Object Classification Name/Code), object 
                classifications 200, 211, 220, 221, 222, and 
                301.
            (2) The term ``net sales at standard price'' has 
        the meaning given that term in the March 1996 
        Department of Defense Financial Management Regulations, 
        Volume 2B, Chapter 9, and displayed in ``Exhibit Fund--
        14 Revenue and Expenses'' for the supply management 
        business areas.

SEC. 395. INVENTORY MANAGEMENT.

    (a) Development and Submission of Schedule.--Not later than 
180 days after the date of the enactment of this Act, the 
Director of the Defense Logistics Agency shall develop and 
submit to Congress a schedule for implementing within the 
agency, for the supplies and equipment described in subsection 
(b), inventory practices identified by the Director as being 
the best commercial inventory practices for the acquisition and 
distribution of such supplies and equipment consistent with 
military requirements. The schedule shall provide for the 
implementation of such practices to be completed not later than 
three years after date of the enactment of this Act.
    (b) Covered Supplies and Equipment.--Subsection (a) shall 
apply to the following types of supplies and equipment for the 
Department of Defense:
            (1) Medical and pharmaceutical.
            (2) Subsistence.
            (3) Clothing and textiles.
            (4) Commercially available electronics.
            (5) Construction.
            (6) Industrial.
            (7) Automotive.
            (8) Fuel.
            (9) Facilities maintenance.
    (c) Definition.--For purposes of this section, the term 
``best commercial inventory practice'' includes a so-called 
prime vendor arrangement and any other practice that the 
Director determines will enable the Defense Logistics Agency to 
reduce inventory levels and holding costs while improving the 
responsiveness of the supply system to user needs.
    (d) Report on Expansion of Covered Supplies and 
Equipment.--Not later than March 1, 1998, the Comptroller 
General shall submit to Congress a report evaluating the 
feasibility of expanding the list of covered supplies and 
equipment under subsection (b) to include repairable items.



               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS



                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
          contingencies.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          Reserves.
Sec. 413. End strengths for military technicians (dual status).

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty 
personnel as of September 30, 1998, as follows:
            (1) The Army, 495,000.
            (2) The Navy, 390,802.
            (3) The Marine Corps, 174,000.
            (4) The Air Force, 371,577.

SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR REGIONAL 
                    CONTINGENCIES.

    (a) Change in Permanent End Strengths.--Subsection (b) of 
section 691 of title 10, United States Code, is amended--
            (1) in paragraph (2), by striking out ``395,000'' 
        and inserting in lieu thereof ``390,802''; and
            (2) in paragraph (4), by striking out ``381,000'' 
        and inserting in lieu thereof ``371,577''.
    (b) Increased Flexibility for the Army.--Subsection (e) of 
such section is amended by inserting ``or, in the case of the 
Army, by not more than 1.5 percent'' before the period at the 
end.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths 
for Selected Reserve personnel of the reserve components as of 
September 30, 1998, as follows:
            (1) The Army National Guard of the United States, 
        361,516.
            (2) The Army Reserve, 208,000.
            (3) The Naval Reserve, 94,294.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 
        108,002.
            (6) The Air Force Reserve, 73,447.
            (7) The Coast Guard Reserve, 8,000.
    (b) Adjustments.--The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve 
component shall be proportionately reduced by--
            (1) the total authorized strength of units 
        organized to serve as units of the Selected Reserve of 
        such component which are on active duty (other than for 
        training) at the end of the fiscal year, and
            (2) the total number of individual members not in 
        units organized to serve as units of the Selected 
        Reserve of such component who are on active duty (other 
        than for training or for unsatisfactory participation 
        in training) without their consent at the end of the 
        fiscal year.
Whenever such units or such individual members are released 
from active duty during any fiscal year, the end strength 
prescribed for such fiscal year for the Selected Reserve of 
such reserve component shall be proportionately increased by 
the total authorized strengths of such units and by the total 
number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the 
reserve components of the Armed Forces are authorized, as of 
September 30, 1998, the following number of Reserves to 
beserving on full-time active duty or full-time duty, in the case of 
members of the National Guard, for the purpose of organizing, 
administering, recruiting, instructing, or training the reserve 
components:
            (1) The Army National Guard of the United States, 
        22,310.
            (2) The Army Reserve, 11,500.
            (3) The Naval Reserve, 16,136.
            (4) The Marine Corps Reserve, 2,559.
            (5) The Air National Guard of the United States, 
        10,671.
            (6) The Air Force Reserve, 867.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    (a) Authorization for Fiscal Year 1998.--The minimum number 
of military technicians (dual status) as of the last day of 
fiscal year 1998 for the reserve components of the Army and the 
Air Force (notwithstanding section 129 of title 10, United 
States Code) shall be the following:
            (1) For the Army Reserve, 5,503.
            (2) For the Army National Guard of the United 
        States, 23,125.
            (3) For the Air Force Reserve, 9,802.
            (4) For the Air National Guard of the United 
        States, 22,853.
    (b) Requests for Future Fiscal Years.--Section 115(g) of 
title 10, United States Code, is amended by adding at the end 
the following new sentence: ``In each budget submitted by the 
President to Congress under section 1105 of title 31, the end 
strength requested for military technicians (dual status) for 
each reserve component of the Army and Air Force shall be 
specifically set forth.''.

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the 
Department of Defense for military personnel for fiscal year 
1998 a total of $69,470,505,000. The authorization in the 
preceding sentence supersedes any other authorization of 
appropriations (definite or indefinite) for such purpose for 
fiscal year 1998.



                   TITLE V--MILITARY PERSONNEL POLICY



                  Subtitle A--Officer Personnel Policy

Sec. 501. Limitation on number of general and flag officers who may 
          serve in positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on 
          period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by 
          promotion boards.
Sec. 504. Authority to defer mandatory retirement for age of officers 
          serving as chaplains.
Sec. 505. Increase in number of officers allowed to be frocked to grades 
          of colonel and Navy captain.
Sec. 506. Increased years of commissioned service for mandatory 
          retirement of regular generals and admirals in grades above 
          major general and rear admiral.
Sec. 507. Uniform policy for requirement of exemplary conduct by 
          commanding officers and others in authority.
Sec. 508. Report on the command selection process for District Engineers 
          of the Army Corps of Engineers.

                  Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death 
          and disability benefits for reserve members who incur or 
          aggravate an illness in the line of duty.
Sec. 514. Authority to permit non-unit assigned officers to be 
          considered by vacancy promotion board to general officer 
          grades.
Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air 
          Force base security functions.
Sec. 516. Involuntary separation of reserve officers in an inactive 
          status.
Sec. 517. Federal status of service by National Guard members as honor 
          guards at funerals of veterans.

                    Subtitle C--Military Technicians

Sec. 521. Authority to retain on the reserve active-status list until 
          age 60 military technicians in the grade of brigadier general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report on feasibility and desirability of conversion of AGR 
          personnel to military technicians (dual status).

   Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                                Attrition

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for 
          military service.
Sec. 533. Improvements in physical fitness of recruits.

               Subtitle E--Military Education and Training

                   Part I--Officer Education Programs

Sec. 541. Requirement for candidates for admission to United States 
          Naval Academy to take oath of allegiance.
Sec. 542. Service academy foreign exchange program.
Sec. 543. Reimbursement of expenses incurred for instruction at service 
          academies of persons from foreign countries.
Sec. 544. Continuation of support to senior military colleges.
Sec. 545. Report on making United States nationals eligible for 
          participation in Senior Reserve Officers' Training Corps.
Sec. 546. Coordination of establishment and maintenance of Junior 
          Reserve Officers' Training Corps units to maximize enrollment 
          and enhance efficiency.

                    Part II--Other Education Matters

Sec. 551. United States Naval Postgraduate School.
Sec. 552. Community College of the Air Force.
Sec. 553. Preservation of entitlement to educational assistance of 
          members of the Selected Reserve serving on active duty in 
          support of a contingency operation.

               Part III--Training of Army Drill Sergeants

Sec. 556. Reform of Army drill sergeant selection and training process.
Sec. 557. Training in human relations matters for Army drill sergeant 
          trainees.

  Subtitle F--Commission on Military Training and Gender-Related Issues

Sec. 561. Establishment and composition of Commission.
Sec. 562. Duties.
Sec. 563. Administrative matters.
Sec. 564. Termination of Commission.
Sec. 565. Funding.
Sec. 566. Subsequent consideration by Congress.

               Subtitle G--Military Decorations and Awards

Sec. 571. Purple Heart to be awarded only to members of the Armed 
          Forces.
Sec. 572. Eligibility for Armed Forces Expeditionary Medal for 
          participation in Operation Joint Endeavor or Operation Joint 
          Guard.
Sec. 573. Waiver of time limitations for award of certain decorations to 
          specified persons.
Sec. 574. Clarification of eligibility of members of Ready Reserve for 
          award of service medal for heroism.
Sec. 575. One-year extension of period for receipt of recommendations 
          for decorations and awards for certain military intelligence 
          personnel.
Sec. 576. Eligibility of certain World War II military organizations for 
          award of unit decorations.
Sec. 577. Retroactivity of Medal of Honor special pension.

                  Subtitle H--Military Justice Matters

Sec. 581. Establishment of sentence of confinement for life without 
          eligibility for parole.
Sec. 582. Limitation on appeal of denial of parole for offenders serving 
          life sentence.

                        Subtitle I--Other Matters

Sec. 591. Sexual harassment investigations and reports.
Sec. 592. Sense of the Senate regarding study of matters relating to 
          gender equity in the Armed Forces.
Sec. 593. Authority for personnel to participate in management of 
          certain non-Federal entities.
Sec. 594. Treatment of participation of members in Department of Defense 
          civil military programs.
Sec. 595. Comptroller General study of Department of Defense civil 
          military programs.
Sec. 596. Establishment of public affairs specialty in the Army.
Sec. 597. Grade of defense attache in France.
Sec. 598. Report on crew requirements of WC-130J aircraft.
Sec. 599. Improvement of missing persons authorities applicable to 
          Department of Defense.

                  Subtitle A--Officer Personnel Policy

SEC. 501. LIMITATION ON NUMBER OF GENERAL AND FLAG OFFICERS WHO MAY 
                    SERVE IN POSITIONS OUTSIDE THEIR OWN SERVICE.

    (a) In General.--Chapter 41 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 721. General and flag officers: limitation on appointments, 
                    assignments, details, and duties outside an 
                    officer's own service

    ``(a) Limitation.--An officer described in subsection (b) 
may not be appointed, assigned, or detailed for a period in 
excess of 180 days to a position external to that officer's 
armed force if, immediately following such appointment, 
assignment, or detail, the number of officers described in 
subsection (b) serving in positions external to such officers' 
armed force would be in excess of 26.5 percent of the total 
number of the officers described in subsection (b).
    ``(b) Covered Officers.--The officers covered by subsection 
(a), and to be counted for the purposes of the limitation in 
that subsection, are the following:
            ``(1) Any general or flag officer counted for 
        purposes of section 526(a) of this title.
            ``(2) Any general or flag officer serving in a 
        joint duty assignment position designated by the 
        Chairman of the Joint Chiefs of Staff under section 
        526(b) of this title.
            ``(3) Any colonel or Navy captain counted for 
        purposes of section 777(d)(1) of this title.
    ``(c) External Positions.--For purposes of this section, 
the following positions shall be considered to be external to 
an officer's armed force:
            ``(1) Any position (including a position in joint 
        education) that is a joint duty assignment for purposes 
        of chapter 38 of this title.
            ``(2) Any position in the Office of the Secretary 
        of Defense, a Defense Agency, or a Department of 
        Defense Field Activity.
            ``(3) Any position in the Joint Chiefs of Staff, 
        the Joint Staff, or the headquarters of a combatant 
        command (as defined in chapter 6 of this title).
            ``(4) Any position in the National Guard Bureau.
            ``(5) Any position outside the Department of 
        Defense, including any position in the headquarters of 
        the North Atlantic Treaty Organization or any other 
        international military command, any combined or 
        multinational command, or military mission.
    ``(d) Treatment of Officers Holding Multiple Positions.--
(1) If an officer described in subsection (b) simultaneously 
holds both a position external to that officer's armed force 
and another position not external to that officer's armed 
force, the Secretary of Defense shall determine whether that 
officer shall be counted for the purposes of this section.
    ``(2) The Secretary of Defense shall submit to Congress an 
annual report on the number of officers to whom paragraph (1) 
was applicable during the year covered by the report. The 
report shall set forth the determination made by the Secretary 
under that paragraph in each such case.
    ``(e) Assignments, Etc., For Periods in Excess of 180 
Days.--For purposes of this section, the appointment, 
assignment, or detail of an officer to a position shall be 
considered to be for a period in excess of 180 days unless the 
appointment, assignment, or detail specifies that it is made 
for a period of 180 days or less.
    ``(f) Waiver During Period of War or National Emergency.--
The President may suspend the operation of this section during 
any period of war or of national emergency declared by Congress 
or the President.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``721. General and flag officers: limitation on appointments, 
          assignments, details, and duties outside an officer's own 
          service.''.

SEC. 502. EXCLUSION OF CERTAIN RETIRED OFFICERS FROM LIMITATION ON 
                    PERIOD OF RECALL TO ACTIVE DUTY.

    Section 688(e) of title 10, United States Code, is 
amended--
            (1) by inserting ``(1)'' before ``A member''; and
            (2) by adding at the end the following:
    ``(2) Paragraph (1) does not apply to the following 
officers:
            ``(A) A chaplain who is assigned to duty as a 
        chaplain for the period of active duty to which 
        ordered.
            ``(B) A health care professional (as characterized 
        by the Secretary concerned) who is assigned to duty as 
        a health care professional for the period of active 
        duty to which ordered.
            ``(C) An officer assigned to duty with the American 
        Battle Monuments Commission for the period of active 
        duty to which ordered.''.

SEC. 503. CLARIFICATION OF OFFICERS ELIGIBLE FOR CONSIDERATION BY 
                    PROMOTION BOARDS.

    (a) Officers on the Active-Duty List.--Section 619(d) of 
title 10, United States Code, is amended--
            (1) by striking out ``grade--'' in the matter 
        preceding paragraph (1) and inserting in lieu thereof 
        ``grade any of the following officers:'';
            (2) in paragraph (1)--
                    (A) by striking out ``an officer'' and 
                inserting in lieu thereof ``An officer''; and
                    (B) by striking out ``; or'' at the end and 
                inserting in lieu thereof a period;
            (3) by redesignating paragraph (2) as paragraph (3) 
        and in that paragraph striking out ``an officer'' and 
        inserting in lieu thereof ``An officer''; and
            (4) by inserting after paragraph (1) the following 
        new paragraph (2):
            ``(2) An officer who is recommended for promotion 
        to that grade in the report of an earlier selection 
        board convened under that section, in the case of such 
        a report that has not yet been approved by the 
        President.''.
    (b) Officers on the Reserve Active-Status List.--Section 
14301(c) of such title is amended--
            (1) by striking out ``grade--'' in the matter 
        preceding paragraph (1) and inserting in lieu thereof 
        ``grade any of the following officers:'';
            (2) by striking out ``an officer'' in each of 
        paragraphs (1), (2), and (3) and inserting in lieu 
        thereof ``An officer'';
            (3) by striking out the semicolon at the end of 
        paragraph (1) and inserting in lieu thereof a period;
            (4) by striking out ``; or'' at the end of 
        paragraph (2) and inserting in lieu thereof a period;
            (5) by redesignating paragraphs (2) and (3), as so 
        amended, as paragraphs (3) and (4), respectively, and 
        in each such paragraph striking out ``the next higher 
        grade'' and inserting in lieu thereof ``that grade''; 
        and
            (6) by inserting after paragraph (1) the following 
        new paragraph (2):
            ``(2) An officer who is recommended for promotion 
        to that grade in the report of an earlier selection 
        board convened under a provision referred to in 
        paragraph (1), in the case of such a report that has 
        not yet been approved by the President.''.
    (c) Clarifying Amendments.--Paragraphs (3) and (4) of 
section 14301(c) of such title, as redesignated and amended by 
subsection (b), are each amended by inserting before the period 
at the end the following: ``, if that nomination is pending 
before the Senate''.
    (d) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act and 
shall apply with respect to selection boards that are convened 
under section 611(a), 14101(a), or 14502 of title 10, United 
States Code, on or after that date.

SEC. 504. AUTHORITY TO DEFER MANDATORY RETIREMENT FOR AGE OF OFFICERS 
                    SERVING AS CHAPLAINS.

    (a) Authority for Deferral of Retirement for Chaplains.--
Subsection (c) of section 1251 of title 10, United States Code, 
is amended--
            (1) by redesignating paragraphs (2) and (3) as 
        paragraphs (3) and (4), respectively; and
            (2) by inserting after paragraph (1) the following 
        new paragraph (2):
    ``(2) The Secretary concerned may defer the retirement 
under subsection (a) of an officer who is appointed or 
designated as a chaplain if the Secretary determines that such 
deferral is in the best interest of the military department 
concerned.''.
    (b) Authority for Deferral of Retirement for Chief and 
Deputy Chief of Chaplains.--Such section is further amended by 
adding at the end the following new subsection:
    ``(d) The Secretary concerned may defer the retirement 
under subsection (a) of an officer who is the Chief of 
Chaplains or Deputy Chief of Chaplains of that officer's armed 
force. Such a deferment may not extend beyond the first day of 
the month following the month in which the officer becomes 68 
years of age.''.
    (c) Qualification for Service as Navy Chief of Chaplains or 
Deputy Chief of Chaplains.--(1) Section 5142(b) of such title 
is amended by striking out ``, who are not on the retired 
list,''.
    (2) Section 5142a of such title is amended by striking out 
``, who is not on the retired list,''.

SEC. 505. INCREASE IN NUMBER OF OFFICERS ALLOWED TO BE FROCKED TO 
                    GRADES OF COLONEL AND NAVY CAPTAIN.

    Section 777(d)(2) of title 10, United States Code, is 
amended by inserting after ``1 percent'' the following: ``, or, 
for the grades of colonel and Navy captain, 2 percent,''.

SEC. 506. INCREASED YEARS OF COMMISSIONED SERVICE FOR MANDATORY 
                    RETIREMENT OF REGULAR GENERALS AND ADMIRALS IN 
                    GRADES ABOVE MAJOR GENERAL AND REAR ADMIRAL.

    (a) Years of Service.--Section 636 of title 10, United 
States Code, is amended--
            (1) by striking out ``Except as provided'' and 
        inserting in lieu thereof ``(a) Major Generals and Rear 
        Admirals Serving in Grade.--Except as provided in 
        subsection (b) or (c) and''; and
            (2) by adding at the end the following:
    ``(b) Lieutenant Generals and Vice Admirals.--In the 
administration of subsection (a) in the case of an officer who 
is serving in the grade of lieutenant general or vice admiral, 
the number of years of active commissioned service applicable 
to the officer is 38 years.
    ``(c) Generals and Admirals.--In the administration of 
subsection (a) in the case of an officer who is serving in the 
grade of general or admiral, the number of years of active 
commissioned service applicable to the officer is 40 years.''.
    (b) Section Heading.--The heading of such section is 
amended to read as follows:

``Sec. 636. Retirement for years of service: regular officers in grades 
                    above brigadier general and rear admiral (lower 
                    half)''.

    (c) Clerical Amendment.--The item relating to such section 
in the table of sections at the beginning of subchapter III of 
chapter 36 of such title is amended to read as follows:

``636. Retirement for years of service: regular officers in grades above 
          brigadier general and rear admiral (lower half).''.

SEC. 507. UNIFORM POLICY FOR REQUIREMENT OF EXEMPLARY CONDUCT BY 
                    COMMANDING OFFICERS AND OTHERS IN AUTHORITY.

    (a) Army.--(1) Chapter 345 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 3583. Requirement of exemplary conduct

    ``All commanding officers and others in authority in the 
Army are required--
            ``(1) to show in themselves a good example of 
        virtue, honor, patriotism, and subordination;
            ``(2) to be vigilant in inspecting the conduct of 
        all persons who are placed under their command;
            ``(3) to guard against and suppress all dissolute 
        and immoral practices, and to correct, according to the 
        laws and regulations of the Army, all persons who are 
        guilty of them; and
            ``(4) to take all necessary and proper measures, 
        under the laws, regulations, and customs of the Army, 
        to promote and safeguard the morale, the physical well-
        being, and the general welfare of the officers and 
        enlisted persons under their command or charge.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``3583. Requirement of exemplary conduct.''.

    (b) Air Force.--(1) Chapter 845 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 8583. Requirement of exemplary conduct

    ``All commanding officers and others in authority in the 
Air Force are required--
            ``(1) to show in themselves a good example of 
        virtue, honor, patriotism, and subordination;
            ``(2) to be vigilant in inspecting the conduct of 
        all persons who are placed under their command;
            ``(3) to guard against and suppress all dissolute 
        and immoral practices, and to correct, according to the 
        laws and regulations of the Air Force, all persons who 
        are guilty of them; and
            ``(4) to take all necessary and proper measures, 
        under the laws, regulations, and customs of the Air 
        Force, to promote and safeguard the morale, the 
        physical well-being, and the general welfare of the 
        officers and enlisted persons under their command or 
        charge.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``8583. Requirement of exemplary conduct.''.

SEC. 508. REPORT ON THE COMMAND SELECTION PROCESS FOR DISTRICT 
                    ENGINEERS OF THE ARMY CORPS OF ENGINEERS.

    Not later than March 31, 1998, the Secretary of the Army 
shall submit to Congress a report on the command selection 
process for officers serving as District Engineers of the Corps 
of Engineers. The report shall include the following:
            (1) An identification of each major Corps of 
        Engineers project that--
                    (A) is being carried out by each District 
                Engineer as of the date of the report; or
                    (B) is being planned by each District 
                Engineer to be carried out during the five-year 
                period beginning on the date of the report.
            (2) The expected start and completion dates, during 
        that period, for each major phase of each project 
        identified under paragraph (1).
            (3) The expected dates for changes in the District 
        Engineer in each Corps of Engineers District during 
        that period.
            (4) A plan for optimizing the timing of changes in 
        the District Engineer in each such District so that 
        there is minimal disruption to major phases of major 
        Corps of Engineers projects.
            (5) A review of the effect on the Corps of 
        Engineers, and on the mission of each District of the 
        Corps of Engineers, of allowing major command tours of 
        District Engineers to be of two-to-four years in 
        duration, with the selection of the exact timing of the 
        change of command to be at the discretion of the Chief 
        of Engineers, who shall act with the goal of optimizing 
        the timing of each change so that it has minimal 
        disruption on the mission of the District Engineer.

                 Subtitle B--Reserve Component Matters

SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.

    (a) IRR Members Subject To Order to Active Duty Other Than 
During War or National Emergency.--Section 10144 of title 10, 
United States Code, is amended--
            (1) by inserting ``(a)'' before ``Within the Ready 
        Reserve''; and
            (2) by adding at the end the following new 
        subsection:
    ``(b)(1) Within the Individual Ready Reserve of each 
reserve component there is a category of members, as designated 
by the Secretary concerned, who are subject to being ordered to 
active duty involuntarily in accordance with section 12304 of 
this title. A member may not be placed in that mobilization 
category unless--
            ``(A) the member volunteers for that category; and
            ``(B) the member is selected for that category by 
        the Secretary concerned, based upon the needs of the 
        service and the grade and military skills of that 
        member.
    ``(2) A member of the Individual Ready Reserve may not be 
carried in such mobilization category of members after the end 
of the 24-month period beginning on the date of the separation 
of the member from active service.
    ``(3) The Secretary shall designate the grades and military 
skills or specialities of members to be eligible for placement 
in such mobilization category.
    ``(4) A member in such mobilization category shall be 
eligible for benefits (other than pay and training) as are 
normally available to members of the Selected Reserve, as 
determined by the Secretary of Defense.''.
    (b) Criteria for Ordering to Active Duty.--Subsection (a) 
of section 12304 of title 10, United States Code, is amended by 
inserting after ``of this title),'' the following: ``or any 
member in the Individual Ready Reserve mobilization category 
and designated as essential under regulations prescribed by the 
Secretary concerned,''.
    (c) Maximum Number.--Subsection (c) of such section is 
amended--
            (1) by inserting ``and the Individual Ready 
        Reserve'' after ``Selected Reserve''; and
            (2) by inserting ``, of whom not more than 30,000 
        may be members of the Individual Ready Reserve'' before 
        the period at the end.
    (d) Conforming Amendments.--Such section is further 
amended--
            (1) in subsection (f), by inserting ``or Individual 
        Ready Reserve'' after ``Selected Reserve'';
            (2) in subsection (g), by inserting ``, or any 
        member of the Individual Ready Reserve,'' after ``to 
        serve as a unit''; and
            (3) by adding at the end the following new 
        subsection:
    ``(i) For purposes of this section, the term `Individual 
Ready Reserve mobilization category' means, in the case of any 
reserve component, the category of the Individual Ready Reserve 
described in section 10144(b) of this title.''.
    (e) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 12304. Selected Reserve and certain Individual Ready Reserve 
                    members; order to active duty other than during war 
                    or national emergency''.

    (2) The item relating to section 12304 in the table of 
sections at the beginning of chapter 1209 of such title is 
amended to read as follows:

``12304. Selected Reserve and certain Individual Ready Reserve members; 
          order to active duty other than during war or national 
          emergency.''.

SEC. 512. TERMINATION OF MOBILIZATION INCOME INSURANCE PROGRAM.

    (a) In General.--Chapter 1214 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 12533. Termination of program

    ``(a) In General.--The Secretary shall terminate the 
insurance program in accordance with this section.
    ``(b) Termination of New Enrollments.--The Secretary may 
not enroll a member of the Ready Reserve for coverage under the 
insurance program after the date of the enactment of this 
section.
    ``(c) Termination of Coverage.--(1) The enrollment under 
the insurance program of insured members other than insured 
members described in paragraph (2) is terminated as of the date 
of the enactment of this section. The enrollment of an insured 
member described in paragraph (2) is terminated as of the date 
of the termination of the period of covered service of that 
member described in that paragraph.
    ``(2) An insured member described in this paragraph is an 
insured member who on the date of the enactment of this section 
is serving on covered service for a period of service, or has 
been issued an order directing the performance of covered 
service, that satisfies or would satisfy the entitlement-to-
benefits provisions of this chapter.
    ``(d) Termination of Payment of Benefits.--The Secretary 
may not make any benefit payment under the insurance program 
after the date of the enactment of this section other than to 
an insured member who on that date (1) is serving on an order 
to covered service, (2) has been issued an order directing 
performance of covered service, or (3) has served on covered 
service before that date for which benefits under the program 
have not been paid to the member.
    ``(e) Termination of Insurance Fund.--The Secretary shall 
close the Fund not later than 60 days after the date on which 
the last benefit payment from the Fund is made. Any amount 
remaining in the Fund when closed shall be covered into the 
Treasury as miscellaneous receipts.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``12533. Termination of program.''.

SEC. 513. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND DEATH 
                    AND DISABILITY BENEFITS FOR RESERVE MEMBERS WHO 
                    INCUR OR AGGRAVATE AN ILLNESS IN THE LINE OF DUTY.

    (a) Medical and Dental Care for Members.--Section 1074a of 
title 10, United States Code, is amended--
            (1) in subsection (a)(3), by inserting ``while 
        remaining overnight immediately before the commencement 
        of inactive-duty training, or'' after ``in the line of 
        duty''; and
            (2) by adding at the end the following new 
        subsection:
    ``(e) A member of a uniformed service described in 
paragraph (1)(A) or (2)(A) of subsection (a) whose orders are 
modified or extended, while the member is being treated for (or 
recovering from) the injury, illness, or disease incurred or 
aggravated in the line of duty, so as to result in active duty 
for a period of more than 30 days shall be entitled, while the 
member remains on active duty, to medical and dental care on 
the same basis and to the same extent as members covered by 
section 1074(a) of this title.''.
    (b) Medical and Dental Care for Dependents.--Section 
1076(a) of such title is amended by striking out paragraph (2) 
and inserting in lieu thereof the following new paragraph:
    ``(2) A dependent referred to in paragraph (1) is a 
dependent of a member of a uniformed service described in one 
of the following subparagraphs:
            ``(A) A member who is on active duty for a period 
        of more than 30 days or died while on that duty.
            ``(B) A member who died from an injury, illness, or 
        disease incurred or aggravated--
                    ``(i) while the member was on active duty 
                under a call or order to active duty of 30 days 
                or less, on active duty for training, or on 
                inactive-duty training; or
                    ``(ii) while the member was traveling to or 
                from the place at which the member was to 
                perform, or had performed, such active duty, 
                active duty for training, or inactive-duty 
                training.
            ``(C) A member who died from an injury, illness, or 
        disease incurred or aggravated in the line of duty 
        while the member remained overnight immediately before 
        the commencement of inactive-duty training, or while 
        the member remained overnight between successive 
        periods of inactive-duty training, at or in the 
        vicinity of the site of the inactive-duty training, if 
        the site was outside reasonable commuting distance from 
        the member's residence.
            ``(D) A member who incurred or aggravated an 
        injury, illness, or disease in the line of duty while 
        serving on active duty for a period of 30 days or less 
        (or while traveling to or from the place of such duty) 
        and the member's orders are modified or extended, while 
        the member is being treated for (or recovering from) 
        the injury, illness, or disease, so as to result in 
        active duty for a period of more than 30 days. However, 
        this subparagraph entitles the dependent to medical and 
        dental care only while the member remains on active 
        duty.''.
    (c) Eligibility for Disability Retirement or Separation.--
(1) Section 1204(2) of such title is amended to read as 
follows:
            ``(2) the disability--
                    ``(A) was incurred before September 24, 
                1996, as the proximate result of--
                            ``(i) performing active duty or 
                        inactive-duty training;
                            ``(ii) traveling directly to or 
                        from the place at which such duty is 
                        performed; or
                            ``(iii) an injury, illness, or 
                        disease incurred or aggravated while 
                        remaining overnight, immediately before 
                        the commencement of inactive-duty 
                        training, or while remaining overnight 
                        between successive periods of inactive-
                        duty training, at or in the vicinity of 
                        the site of the inactive-duty training, 
                        if the site of the inactive-duty 
                        training is outside reasonable 
                        commuting distance of the member's 
                        residence; or
                    ``(B) is a result of an injury, illness, or 
                disease incurred or aggravated in line of duty 
                after September 23, 1996--
                            ``(i) while performing active duty 
                        or inactive-duty training;
                            ``(ii) while traveling directly to 
                        or from the place at which such duty is 
                        performed; or
                            ``(iii) while remaining overnight, 
                        immediately before the commencement of 
                        inactive-duty training, or while 
                        remaining overnight between successive 
                        periods of inactive-duty training, at 
                        or in the vicinity of the site of the 
                        inactive-duty training, if the site of 
                        the inactive-duty training is outside 
                        reasonable commuting distance of the 
                        member's residence;''.
    (2) Section 1206 of such title is amended--
            (A) by redesignating paragraphs (2), (3), and (4) 
        as paragraphs (3), (4), and (5), respectively, and
            (B) by inserting after paragraph (1) the following 
        new paragraph (2):
            ``(2) the disability is a result of an injury, 
        illness, or disease incurred or aggravated in line of 
        duty while--
                    ``(A) performing active duty or inactive-
                duty training;
                    ``(B) traveling directly to or from the 
                place at which such duty is performed; or
                    ``(C) while remaining overnight immediately 
                before the commencement of inactive-duty 
                training, or while remaining overnight between 
                successive periods of inactive-duty training, 
                at or in the vicinity of the site of the 
                inactive-duty training, if the site is outside 
                reasonable commuting distance of the member's 
                residence;''.
    (d) Conforming Amendments and Related Clerical 
Amendments.--(1) The heading of section 1204 of title 10, 
United States Code, is amended to read as follows:

``Sec. 1204. Members on active duty for 30 days or less or on inactive-
                    duty training: retirement''.

    (2) The heading of section 1206 of such title is amended to 
read as follows:

``Sec. 1206. Members on active duty for 30 days or less or on inactive-
                    duty training: separation''.

    (3) The table of sections at the beginning of chapter 61 of 
such title is amended--
            (A) by striking out the item relating to section 
        1204 and inserting in lieu thereof the following:

``1204. Members on active duty for 30 days or less or on inactive-duty 
          training: retirement.'';

        and
            (B) by striking out the item relating to section 
        1206 and inserting in lieu thereof the following:

``1206. Members on active duty for 30 days or less or on inactive-duty 
          training: separation.''.

    (e) Recovery, Care, and Disposition of Remains.--Section 
1481(a)(2)(D) of such title is amended by inserting ``remaining 
overnight immediately before the commencement of inactive-duty 
training, or'' after ``(D)''.
    (f) Entitlement to Basic Pay.--Section 204 of title 37, 
United States Code, is amended by inserting ``while remaining 
overnight immediately before the commencement of inactive-duty 
training, or'' in subsections (g)(1)(D) and (h)(1)(D) after 
``in line of duty''.
    (g) Compensation for Inactive-Duty Training.--Section 
206(a)(3)(C) of title 37, United States Code, is amended by 
inserting ``while remaining overnight immediately before the 
commencement of inactive-duty training, or'' after ``in line of 
duty''.

SEC. 514. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OFFICERS TO BE 
                    CONSIDERED BY VACANCY PROMOTION BOARD TO GENERAL 
                    OFFICER GRADES.

    (a) Convening of Selection Boards.--Section 14101(a)(2) of 
title 10, United States Code, is amended by striking out 
``(except in the case of a board convened to consider officers 
as provided in section 14301(e) of this title)''.
    (b) Eligibility for Consideration of Certain Army 
Officers.--Section 14301 of such title is amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsections (f) and (g) as 
        subsections (e) and (f), respectively.
    (c) General Officer Promotions.--Section 14308 of such 
title is amended--
            (1) in subsection (e)(2), by inserting ``a grade 
        below colonel in'' after ``(2) an officer in''; and
            (2) in subsection (g)--
                    (A) by inserting ``or the Air Force'' in 
                the first sentence after ``of the Army'' the 
                first place it appears;
                    (B) by striking out ``in that grade'' in 
                the first sentence and all that follows through 
                ``Secretary of the Army'' and inserting in lieu 
                thereof ``in the Army Reserve or the Air Force 
                Reserve, as the case may be, in that grade''; 
                and
                    (C) by striking out the second sentence.
    (d) Vacancy Promotions.--Section 14315(b)(1) of such title 
is amended by striking out ``duties'' in clause (A) and all 
that follows through ``as a unit,'' and inserting in lieu 
thereof ``duties of a general officer of the next higher 
reserve grade in the Army Reserve,''.

SEC. 515. PROHIBITION ON USE OF AIR FORCE RESERVE AGR PERSONNEL FOR AIR 
                    FORCE BASE SECURITY FUNCTIONS.

    (a) In General.--Chapter 1215 of title 10, United States 
Code, is amended by striking out

                       ``[No present sections]''

and inserting in lieu thereof the following:

``Sec.
12551. Prohibition of use of Air Force Reserve AGR personnel for Air 
          Force base security functions.

``Sec. 12551. Prohibition of use of Air Force Reserve AGR personnel for 
                    Air Force base security functions

    ``(a) Limitation.--The Secretary of the Air Force may not 
use members of the Air Force Reserve who are AGR personnel for 
the performance of force protection, base security, or security 
police functions at an Air Force facility in the United States.
    ``(b) AGR Personnel Defined.--In this section, the term 
`AGR personnel' means members of the Air Force Reserve who are 
on active duty (other than for training) in connection with 
organizing, administering, recruiting, instructing, or training 
the Air Force Reserve.''.
    (b) Clerical Amendment.--The items relating to chapter 1215 
in the tables of chapters at the beginning of subtitle E, and 
at the beginning of part II of subtitle E, are amended to read 
as follows:

``1215. Miscellaneous Prohibitions and Penalties................12551''.

SEC. 516. INVOLUNTARY SEPARATION OF RESERVE OFFICERS IN AN INACTIVE 
                    STATUS.

    (a) Authority for Involuntary Separation of Certain 
Inactive Status Officers.--Section 12683(b) of title 10, United 
States Code, is amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``apply--'' and inserting in lieu thereof 
        ``apply to any of the following:''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(4) a separation of an officer who is in an 
        inactive status in the Standby Reserve and who is not 
        qualified for transfer to the Retired Reserve or is 
        qualified for transfer to the Retired Reserve and does 
        not apply for such a transfer.''.
    (b) Stylistic Amendments.--Such section is further 
amended--
            (1) in paragraphs (1), (2), and (3), by striking 
        out ``to a'' and inserting in lieu thereof ``A'';
            (2) by striking out the semicolon at the end of 
        paragraph (1) and inserting in lieu thereof a period; 
        and
            (3) by striking out ``; and'' at the end of 
        paragraph (2) and inserting in lieu thereof a period.

SEC. 517. FEDERAL STATUS OF SERVICE BY NATIONAL GUARD MEMBERS AS HONOR 
                    GUARDS AT FUNERALS OF VETERANS.

    (a) In General.--(1) Chapter 1 of title 32, United States 
Code, is amended by adding after section 113, as added by 
section 386(a), the following new section:

``Sec. 114. Honor guard functions at funerals for veterans

    ``(a) Subject to such regulations and restrictions as may 
be prescribed by the Secretary concerned, the performance of 
honor guard functions by members of the National Guard at 
funerals for veterans of the armed forces may be treated by the 
Secretary concerned as a Federal function for which 
appropriated funds may be used. Any such performance of honor 
guard functions at such a funeral may not be considered to be a 
period of drill or training otherwise required.
    ``(b) This section does not authorize additional 
appropriations for any fiscal year. Any expense of the National 
Guard that is incurred by reason of this section shall be paid 
from appropriations otherwise available for the National 
Guard.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding after the item 
relating to section 113, as added by section 386(b), the 
following new item:

``114. Honor guard functions at funerals for veterans.''.

                    Subtitle C--Military Technicians

SEC. 521. AUTHORITY TO RETAIN ON THE RESERVE ACTIVE-STATUS LIST UNTIL 
                    AGE 60 MILITARY TECHNICIANS IN THE GRADE OF 
                    BRIGADIER GENERAL.

    (a) Retention.--Section 14702(a) of title 10, United States 
Code, is amended--
            (1) by striking out ``section 14506 or 14507'' and 
        inserting in lieu thereof ``section 14506, 14507, or 
        14508''; and
            (2) by striking out ``or colonel'' and inserting in 
        lieu thereof ``colonel, or brigadier general''.
    (b) Technical Amendment.--Section 14508(c) of such title is 
amended by striking out ``not later than the date on which the 
officer becomes 60 years of age'' and inserting in lieu thereof 
``not later than the last day of the month in which the officer 
becomes 60 years of age''.

SEC. 522. MILITARY TECHNICIANS (DUAL STATUS).

    (a) Definition.--Subsection (a) of section 10216 of title 
10, United States Code, is amended to read as follows:
    ``(a) In General.--(1) For purposes of this section and any 
other provision of law, a military technician (dual status) is 
a Federal civilian employee who--
            ``(A) is employed under section 3101 of title 5 or 
        section 709 of title 32;
            ``(B) is required as a condition of that employment 
        to maintain membership in the Selected Reserve; and
            ``(C) is assigned to a position as a technician in 
        the administration and training of the Selected Reserve 
        or in the maintenance and repair of supplies or 
        equipment issued to the Selected Reserve or the armed 
        forces.
    ``(2) Military technicians (dual status) shall be 
authorized and accounted for as a separate category of civilian 
employees.''.
    (b) Unit Membership and Dual Status Requirement.--Such 
section is further amended by striking out subsection (d) and 
inserting in lieu thereof the following:
    ``(d) Unit Membership Requirement.--(1) Unless specifically 
exempted by law, each individual who is hired as a military 
technician (dual status) after December 1, 1995, shall be 
required as a condition of that employment to maintain 
membership in--
            ``(A) the unit of the Selected Reserve by which the 
        individual is employed as a military technician; or
            ``(B) a unit of the Selected Reserve that the 
        individual is employed as a military technician to 
        support.
    ``(2) Paragraph (1) does not apply to a military technician 
(dual status) who is employed by the Army Reserve in an area 
other than Army Reserve troop program units.
    ``(e) Dual Status Requirement.--(1) Funds appropriated for 
the Department of Defense may not (except as provided in 
paragraph (2)) be used for compensation as a military 
technician of any individual hired as a military technician 
after February 10, 1996, who is no longer a member of the 
Selected Reserve.
    ``(2) The Secretary concerned may pay compensation 
described in paragraph (1) to an individual described in that 
paragraph who is no longer a member of the Selected Reserve for 
a period not to exceed six months following the individual's 
loss of membership in the Selected Reserve if the Secretary 
determines that such loss of membership was not due to the 
failure of that individual to meet military standards.''.
    (c) National Guard Dual Status Requirement.--Section 709(b) 
of title 32, United States Code, is amended by striking out 
``Except as prescribed by the Secretary concerned, a 
technician'' and inserting in lieu thereof ``A technician''.
    (d) Plan for Clarification of Statutory Authority of 
Military Technicians.--(1) The Secretary of Defense shall 
submit to Congress, as part of the budget justification 
materials submitted in support of the budget for the Department 
of Defense for fiscal year 1999, a legislative proposal to 
provide statutory authority and clarification under title 5, 
United States Code--
            (A) for the hiring, management, promotion, 
        separation, and retirement of military technicians who 
        are employed in support of units of the Army Reserve or 
        Air Force Reserve; and
            (B) for the transition to the competitive service 
        of an individual who is hired as a military technician 
        in support of a unit of the Army Reserve or Air Force 
        Reserve and who (as determined by the Secretary 
        concerned) fails to maintain membership in the Selected 
        Reserve through no fault of the individual.
    (2) The legislative proposal under paragraph (1) shall be 
developed in consultation with the Director of the Office of 
Personnel Management.
    (e) Conforming Repeal.--Section 8016 of Public Law 104-61 
(109 Stat. 654; 10 U.S.C. 10101 note) is repealed.
    (f) Cross-Reference Corrections.--Section 10216(c)(1) of 
title 10, United States Code, is amended by striking out 
``subsection (a)(1)'' in subparagraphs (A), (B), (C), and (D) 
and inserting in lieu thereof ``subsection (b)(1)''.
    (g) Conforming Amendments to Section 10216.--Section 10216 
of title 10, United States Code, is further amended as follows:
            (1) The heading of subsection (b) is amended by 
        inserting ``(Dual Status)'' after ``Military 
        Technicians''.
            (2) Subsection (b)(1) is amended--
                    (A) by inserting ``(dual status)'' after 
                ``for military technicians'';
                    (B) by striking out ``dual status military 
                technicians'' and inserting in lieu thereof 
                ``military technicians (dual status)''; and
                    (C) by inserting ``(dual status)'' after 
                ``military technicians'' in subparagraph (C).
            (3) Subsection (b)(2) is amended by inserting 
        ``(dual status)'' after ``military technicians'' both 
        places it appears.
            (4) Subsection (b)(3) is amended by inserting 
        ``(dual status)'' after ``Military technician''.
            (5) Subsection (c) is amended--
                    (A) in the matter preceding paragraph 
                (1)(A), by inserting ``(dual status)'' after 
                ``military technicians'';
                    (B) in paragraph (1), by striking out 
                ``dual-status technicians'' in subparagraphs 
                (A), (B), (C), and (D) and inserting in lieu 
                thereof ``military technicians (dual status)'';
                    (C) in paragraph (2)(A), by inserting 
                ``(dual status)'' after ``military 
                technician''; and
                    (D) in paragraph (2)(B), by striking out 
                ``delineate--'' and all that follows through 
                ``or other reasons'' in clause (ii) and 
                inserting in lieu thereof ``delineate the 
                specific force structure reductions''.
    (h) Clerical Amendments.--(1) The heading of section 10216 
of such title is amended to read as follows:

``Sec. 10216. Military technicians (dual status)''.

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 1007 of such title is 
amended to read as follows:

``10216. Military technicians (dual status).''.

    (i) Other Conforming Amendments.--(1) Section 115(g) of 
such title is amended by inserting ``(dual status)'' in the 
first sentence after ``military technicians'' and in the second 
sentence after ``military technician''.
    (2) Section 115a(h) of such title is amended--
            (A) by inserting ``(displayed in the aggregate and 
        separately for military technicians (dual status) and 
        non-dual status military technicians)'' in the matter 
        preceding paragraph (1) after ``of the following''; and
            (B) by striking out paragraph (3).

SEC. 523. NON-DUAL STATUS MILITARY TECHNICIANS.

    (a) In General.--(1) Chapter 1007 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 10217. Non-dual status military technicians

    ``(a) Definition.--For the purposes of this section and any 
other provision of law, a non-dual status military technician 
is a civilian employee of the Department of Defense serving in 
a military technician position who--
            ``(1) was hired as a military technician before the 
        date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 1998 under any of the 
        authorities specified in subsection (c); and
            ``(2) as of the date of the enactment of that Act 
        is not a member of the Selected Reserve or after such 
        date ceased to be a member of the Selected Reserve.
    ``(b) Employment Authorities.--The authorities referred to 
in subsection (a) are the following:
            ``(1) Section 10216 of this title.
            ``(2) Section 709 of title 32.
            ``(3) The requirements referred to in section 8401 
        of title 5.
            ``(4) Section 8016 of the Department of Defense 
        Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 
        654), and any comparable provision of law enacted on an 
        annual basis in the Department of Defense 
        Appropriations Acts for fiscal years 1984 through 1995.
            ``(5) Any memorandum of agreement between the 
        Department of Defense and the Office of Personnel 
        Management providing for the hiring of military 
        technicians.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``10217. Non-dual status military technicians.''.

    (b) Limitation.--The number of civilian employees of a 
military department who are non-dual status military 
technicians as of September 30, 1998, may not exceed the 
following:
            (1) For the Army Reserve, 1,500.
            (2) For the Army National Guard of the United 
        States, 2,400.
            (3) For the Air Force Reserve, 0.
            (4) For the Air National Guard of the United 
        States, 450.
    (c) Report Required.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report containing the number of military 
technician positions that are held by non-dual status military 
technicians as of September 30, 1997, shown separately for each 
of the following:
            (1) The Army Reserve.
            (2) The Army National Guard of the United States.
            (3) The Air Force Reserve.
            (4) The Air National Guard of the United States.
    (d) Plan for Full Utilization of Military Technicians (Dual 
Status).--(1) Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a plan for ensuring that, on and after September 30, 
2007, all military technician positions are held only by 
military technicians (dual status).
    (2) The plan shall provide for achieving, by September 30, 
2002, a 50 percent reduction, by conversion of positions or 
otherwise, in the number of non-dual status military 
technicians that are holding military technicians positions, as 
compared with the number of non-dual status technicians that 
held military technician positions as of September 30, 1997, as 
specified in the report under subsection (c).
    (3) Among the alternative actions to be considered in 
developing the plan, the Secretary shall consider the 
feasibility and cost of each of the following:
            (A) Eliminating or consolidating technician 
        functions and positions.
            (B) Contracting with private sector sources for the 
        performance of functions performed by military 
        technicians.
            (C) Converting non-dual status military technician 
        positions to military technician (dual status) 
        positions or to positions in the competitive service 
        or, in the case of positions of the Army National Guard 
        of the United States or the Air National Guard of the 
        United States, to positions of State employment.
            (D) Use of incentives to facilitate attainment of 
        the objectives specified for the plan in paragraphs (1) 
        and (2).
    (4) The Secretary shall submit with the plan any 
recommendations for legislation that the Secretary considers 
necessary to carry out the plan.
    (e) Definitions for Categories of Military Technicians.--In 
this section:
            (1) The term ``non-dual status military 
        technician'' has the meaning given that term in section 
        10217 of title 10, United States Code, as added by 
        subsection (a).
            (2) The term ``military technician (dual status)'' 
        has the meaning given the term in section 10216(a) of 
        such title.

SEC. 524. REPORT ON FEASIBILITY AND DESIRABILITY OF CONVERSION OF AGR 
                    PERSONNEL TO MILITARY TECHNICIANS (DUAL STATUS).

    (a) Report Required.--Not later than January 1, 1998, the 
Secretary of Defense shall submit to Congress a report on the 
feasibility and desirability of conversion of AGR personnel to 
military technicians (dual status). The report shall--
            (1) identify advantages and disadvantages of such a 
        conversion;
            (2) identify possible savings if such a conversion 
        were to be carried out; and
            (3) set forth the recommendation of the Secretary 
        as to whether such a conversion should be made.
    (b) AGR Personnel Defined.--For purposes of subsection (a), 
the term ``AGR personnel'' means members of the Army or Air 
Force reserve components who are on active duty (other than for 
training) in connection with organizing, administering, 
recruiting, instructing, or training their respective reserve 
components.

  Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                               Attrition

SEC. 531. REFORM OF MILITARY RECRUITING SYSTEMS.

    (a) In General.--The Secretary of Defense shall carry out 
reforms in the recruiting systems of the Army, Navy, Air Force, 
and Marine Corps in order to improve the quality of new 
recruits and to reduce attrition among recruits.
    (b) Specific Reforms.--As part of the reforms in military 
recruiting systems to be undertaken under subsection (a), the 
Secretary shall take the following steps:
            (1) Improve the system of pre-enlistment waivers 
        and separation codes used for recruits by (A) revising 
        and updating those waivers and codes to allow more 
        accurate and useful data collection about those 
        separations, and (B) prescribing regulations to ensure 
        that those waivers and codes are interpreted in a 
        uniform manner by the military services.
            (2) Develop a reliable database for (A) analyzing 
        (at both the Department of Defense and service-level) 
        data on reasons for attrition of new recruits, and (B) 
        undertaking Department of Defense or service-specific 
        measures (or both) to control and manage such 
        attrition.
            (3) Require that the Secretary of each military 
        department (A) adopt or strengthen incentives for 
        recruiters to thoroughly prescreen potential candidates 
        for recruitment, and (B) link incentives for 
        recruiters, in part, to the ability of a recruiter to 
        screen out unqualified candidates before enlistment.
            (4) Require that the Secretary of each military 
        department include as a measurement of recruiter 
        performance the percentage of persons enlisted by a 
        recruiter who complete initial combat training or basic 
        training.
            (5) Assess trends in the number and use of waivers 
        over the 1991-1997 period that were issued to permit 
        applicants to enlist with medical or other conditions 
        that would otherwise be disqualifying.
            (6) Require the Secretary of each military 
        department to implement policies and procedures (A) to 
        ensure the prompt separation of recruits who are unable 
        to successfully complete basic training, and (B) to 
        remove those recruits from the training environment 
        while separation proceedings are pending.
    (c) Report.--Not later than March 31, 1998, the Secretary 
shall submit to Congress a report of the trends assessed under 
subsection (b)(5). The information on those trends provided in 
the report shall be shown by armed force and by category of 
waiver. The report shall include recommendations of the 
Secretary for changing, revising, or limiting the use of 
waivers referred to in that subsection.

SEC. 532. IMPROVEMENTS IN MEDICAL PRESCREENING OF APPLICANTS FOR 
                    MILITARY SERVICE.

    (a) In General.--The Secretary of Defense shall improve the 
medical prescreening of applicants for entrance into the Army, 
Navy, Air Force, or Marine Corps.
    (b) Specific Steps.--As part of those improvements, the 
Secretary shall take the following steps:
            (1) Require that each applicant for service in the 
        Army, Navy, Air Force, or Marine Corps (A) provide to 
        the Secretary the name of the applicant's medical 
        insurer and the names of past medical providers, and 
        (B) sign a release allowing the Secretary to request 
        and obtain medical records of the applicant.
            (2) Require that the forms and procedures for 
        medical prescreening of applicants that are used by 
        recruiters and by Military Entrance Processing Commands 
        be revised so as to ensure that medical questions are 
        specific, unambiguous, and tied directly to the types 
        of medical separations most common for recruits during 
        basic training and follow-on training.
            (3) Add medical screening tests to the examinations 
        of recruits carried out by Military Entrance Processing 
        Stations, provide more thorough medical examinations to 
        selected groups of applicants, or both, to the extent 
        that the Secretary determines that to do so could be 
        cost effective in reducing attrition at basic training.
            (4) Provide for an annual quality control 
        assessment of the effectiveness of the Military 
        Entrance Processing Commands in identifying medical 
        conditions in recruits that existed before enlistment 
        in the Armed Forces, each such assessment to be 
        performed by an agency or contractor other than the 
        Military Entrance Processing Commands.

SEC. 533. IMPROVEMENTS IN PHYSICAL FITNESS OF RECRUITS.

    (a) In General.--The Secretary of Defense shall take steps 
to improve the physical fitness of recruits before they enter 
basic training.
    (b) Specific Steps.--As part of those improvements, the 
Secretary shall take the following steps:
            (1) Direct the Secretary of each military 
        department to implement programs under which new 
        recruits who are in the Delayed Entry Program are 
        encouraged to participate in physical fitness 
        activities before reporting to basic training.
            (2) Develop a range of incentives for new recruits 
        to participate in physical fitness programs, as well as 
        for those recruits who improve their level of fitness 
        while in the Delayed Entry Program, which may include 
        access to Department of Defense military fitness 
        facilities, and access to military medical facilities 
        in the case of a recruit who is injured while 
        participating in physical activities with recruiters or 
        other military personnel.
            (3) Evaluate whether partnerships between 
        recruiters and reserve components, or other innovative 
        arrangements, could provide a pool of qualified 
        personnel to assist in the conduct of physical training 
        programs for new recruits in the Delayed Entry Program.

              Subtitle E--Military Education and Training

                   PART I--OFFICER EDUCATION PROGRAMS

SEC. 541. REQUIREMENT FOR CANDIDATES FOR ADMISSION TO UNITED STATES 
                    NAVAL ACADEMY TO TAKE OATH OF ALLEGIANCE.

    (a) Requirement.--Section 6958 of title 10, United States 
Code, is amended by adding at the end the following new 
subsection:
    ``(d) To be admitted to the Naval Academy, an appointee 
must take and subscribe to an oath prescribed by the Secretary 
of the Navy. If a candidate for admission refuses to take and 
subscribe to the prescribed oath, the candidate's appointment 
is terminated.''.
    (b) Exception for Midshipmen From Foreign Countries.--
Section 6957 of such title is amended by adding at the end the 
following new subsection:
    ``(d) A person receiving instruction under this section is 
not subject to section 6958(d) of this title.''.

SEC. 542. SERVICE ACADEMY FOREIGN EXCHANGE PROGRAM.

    (a) United States Military Academy.--(1) Chapter 403 of 
title 10, United States Code, is amended by inserting after 
section 4344 the following new section:

``Sec. 4345. Exchange program with foreign military academies

    ``(a) Exchange Program Authorized.--The Secretary of the 
Army may permit a student enrolled at a military academy of a 
foreign country to receive instruction at the Academy in 
exchange for a cadet receiving instruction at that foreign 
military academy pursuant to an exchange agreement entered into 
between the Secretary and appropriate officials of the foreign 
country. Students receiving instruction at the Academy under 
the exchange program shall be in addition to persons receiving 
instruction at the Academy under section 4344 of this title.
    ``(b) Limitations on Number and Duration of Exchanges.--An 
exchange agreement under this section between the Secretary and 
a foreign country shall provide for the exchange of students on 
a one-for-one basis each fiscal year. Not more than 10 cadets 
and a comparable number of students from all foreign military 
academies participating in the exchange program may be 
exchanged during any fiscal year. The duration of an exchange 
may not exceed the equivalent of one academic semester at the 
Academy.
    ``(c) Costs and Expenses.--(1) A student from a military 
academy of a foreign country is not entitled to the pay, 
allowances, and emoluments of a cadet by reason of attendance 
at the Academy under the exchange program, and the Department 
of Defense may not incur any cost of international travel 
required for transportation of such a student to and from the 
sponsoring foreign country.
    ``(2) The Secretary may provide a student from a foreign 
country under the exchange program, during the period of the 
exchange, with subsistence, transportation within the 
continental United States, clothing, health care, and other 
services to the same extent that the foreign country provides 
comparable support and services to the exchanged cadet in that 
foreign country.
    ``(3) The Academy shall bear all costs of the exchange 
program from funds appropriated for the Academy. Expenditures 
in support of the exchange program may not exceed $50,000 
during any fiscal year.
    ``(d) Application of Other Laws.--Subsections (c) and (d) 
of section 4344 of this title shall apply with respect to a 
student enrolled at a military academy of a foreign country 
while attending the Academy under the exchange program.
    ``(e) Regulations.--The Secretary shall prescribe 
regulations to implement this section. Such regulations may 
include qualification criteria and methods of selection for 
students of foreign military academies to participate in the 
exchange program.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 4344 
the following new item:

``4345. Exchange program with foreign military academies.''.

    (b) Naval Academy.--(1) Chapter 603 of title 10, United 
States Code, is amended by inserting after section 6957 the 
following new section:

``Sec. 6957a. Exchange program with foreign military academies

    ``(a) Exchange Program Authorized.--The Secretary of the 
Navy may permit a student enrolled at a military academy of a 
foreign country to receive instruction at the Naval Academy in 
exchange for a midshipman receiving instruction at that foreign 
military academy pursuant to an exchange agreement entered into 
between the Secretary and appropriate officials of the foreign 
country. Students receiving instruction at the Naval Academy 
under the exchange program shall be in addition to persons 
receiving instruction at the Academy under section 6957 of this 
title.
    ``(b) Limitations on Number and Duration of Exchanges.--An 
exchange agreement under this section between the Secretary and 
a foreign country shall provide for the exchange of students on 
a one-for-one basis each fiscal year. Not more than 10 
midshipmen and a comparable number of students from all foreign 
military academies participating in the exchange program may be 
exchanged during any fiscal year. The duration of an exchange 
may not exceed the equivalent of one academic semester at the 
Naval Academy.
    ``(c) Costs and Expenses.--(1) A student from a military 
academy of a foreign country is not entitled to the pay, 
allowances, and emoluments of a midshipman by reason of 
attendance at the Naval Academy under the exchange program, and 
the Department of Defense may not incur any cost of 
international travel required for transportation of such a 
student to and from the sponsoring foreign country.
    ``(2) The Secretary may provide a student from a foreign 
country under the exchange program, during the period of the 
exchange, with subsistence, transportation within the 
continental United States, clothing, health care, and other 
services to the same extent that the foreign country provides 
comparable support and services to the exchanged midshipman in 
that foreign country.
    ``(3) The Naval Academy shall bear all costs of the 
exchange program from funds appropriated for the Academy. 
Expenditures in support of the exchange program may not exceed 
$50,000 during any fiscal year.
    ``(d) Application of Other Laws.--Subsections (c) and (d) 
of section 6957 of this title shall apply with respect to a 
student enrolled at a military academy of a foreign country 
while attending the Naval Academy under the exchange program.
    ``(e) Regulations.--The Secretary shall prescribe 
regulations to implement this section. Such regulations may 
include qualification criteria and methods of selection for 
students of foreign military academies to participate in the 
exchange program.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 6957 
the following new item:

``6957a. Exchange program with foreign military academies.''.

    (c) Air Force Academy.--(1) Chapter 903 of title 10, United 
States Code, is amended by inserting after section 9344 the 
following new section:

``Sec. 9345. Exchange program with foreign military academies

    ``(a) Exchange Program Authorized.--The Secretary of the 
Air Force may permit a student enrolled at a military academy 
of a foreign country to receive instruction at the Air Force 
Academy in exchange for an Air Force cadet receiving 
instruction at that foreign military academy pursuant to an 
exchange agreement entered into between the Secretary and 
appropriate officials of the foreign country. Students 
receiving instruction at the Academy under the exchange program 
shall be in addition to persons receiving instruction at the 
Academy under section 9344 of this title.
    ``(b) Limitations on Number and Duration of Exchanges.--An 
exchange agreement under this section between the Secretary and 
a foreign country shall provide for the exchange of students on 
a one-for-one basis each fiscal year. Not more than 10 Air 
Force cadets and a comparable number of students from all 
foreign military academies participating in the exchange 
program may be exchanged during any fiscal year. The duration 
of an exchange may not exceed the equivalent of one academic 
semester at the Air Force Academy.
    ``(c) Costs and Expenses.--(1) A student from a military 
academy of a foreign country is not entitled to the pay, 
allowances, and emoluments of an Air Force cadet by reason of 
attendance at the Air Force Academy under the exchange program, 
and the Department of Defense may not incur any cost of 
international travel required for transportation of such a 
student to and from the sponsoring foreign country.
    ``(2) The Secretary may provide a student from a foreign 
country under the exchange program, during the period of the 
exchange, with subsistence, transportation within the 
continental United States, clothing, health care, and other 
services to the same extent that the foreign country provides 
comparable support and services to the exchanged Air Force 
cadet in that foreign country.
    ``(3) The Air Force Academy shall bear all costs of the 
exchange program from funds appropriated for the Academy. 
Expenditures in support of the exchange program may not exceed 
$50,000 during any fiscal year.
    ``(d) Application of Other Laws.--Subsections (c) and (d) 
of section 9344 of this title shall apply with respect to a 
student enrolled at a military academy of a foreign country 
while attending the Air Force Academy under the exchange 
program.
    ``(e) Regulations.--The Secretary shall prescribe 
regulations to implement this section. Such regulations may 
include qualification criteria and methods of selection for 
students of foreign military academies to participate in the 
exchange program.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 9344 
the following new item:

``9345. Exchange program with foreign military academies.''.

    (d) Repeal of Obsolete Limitation.--Section 9353(a) of such 
title is amended by striking out ``After the date of the 
accrediting of the Academy, the'' and inserting in lieu thereof 
``The''.

SEC. 543. REIMBURSEMENT OF EXPENSES INCURRED FOR INSTRUCTION AT SERVICE 
                    ACADEMIES OF PERSONS FROM FOREIGN COUNTRIES.

    (a) United States Military Academy.--Section 4344(b) of 
title 10, United States Code, is amended--
            (1) in paragraph (2), by striking out the period at 
        the end and inserting in lieu thereof the following: 
        ``, except that the reimbursement rates may not be less 
        than the cost to the United States of providing such 
        instruction, including pay, allowances, and emoluments, 
        to a cadet appointed from the United States.''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(3) The amount of reimbursement waived under paragraph 
(2) may not exceed 35 percent of the per-person reimbursement 
amount otherwise required to be paid by a foreign country under 
such paragraph, except in the case of not more than five 
persons receiving instruction at the Academy under this section 
at any one time.''.
    (b) Naval Academy.--Section 6957(b) of such title is 
amended--
            (1) in paragraph (2), by striking out the period at 
        the end and inserting in lieu thereof the following: 
        ``, except that the reimbursement rates may not be less 
        than the cost to the United States of providing such 
        instruction, including pay, allowances, and emoluments, 
        to a midshipman appointed from the United States.''; 
        and
            (2) by adding at the end the following new 
        paragraph:
    ``(3) The amount of reimbursement waived under paragraph 
(2) may not exceed 35 percent of the per-person reimbursement 
amount otherwise required to be paid by a foreign country under 
such paragraph, except in the case of not more than five 
persons receiving instruction at the Naval Academy under this 
section at any one time.''.
    (c) Air Force Academy.--Section 9344(b) of such title is 
amended--
            (1) in paragraph (2), by striking out the period at 
        the end and inserting in lieu thereof the following: 
        ``, except that the reimbursement rates may not be less 
        than the cost to the United States of providing such 
        instruction, including pay, allowances, and emoluments, 
        to a cadet appointed from the United States.''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(3) The amount of reimbursement waived under paragraph 
(2) may not exceed 35 percent of the per-person reimbursement 
amount otherwise required to be paid by a foreign country under 
such paragraph, except in the case of not more than five 
persons receiving instruction at the Academy under this section 
at any one time.''.
    (d) Effective Date.--The amendments made by this section 
apply with respect to students from a foreign country entering 
the United States Military Academy, the United States Naval 
Academy, or the United States Air Force Academy on or after May 
1, 1998.

SEC. 544. CONTINUATION OF SUPPORT TO SENIOR MILITARY COLLEGES.

    (a) Definition of Senior Military Colleges.--For purposes 
of this section, the term ``senior military colleges'' means 
the following:
            (1) Texas A&M University.
            (2) Norwich University.
            (3) The Virginia Military Institute.
            (4) The Citadel.
            (5) Virginia Polytechnic Institute and State 
        University.
            (6) North Georgia College and State University.
    (b) Findings.--Congress finds the following:
            (1) The senior military colleges consistently have 
        provided substantial numbers of highly qualified, long-
        serving leaders to the Armed Forces.
            (2) The quality of the military leaders produced by 
        the senior military colleges is, in part, the result of 
        the rigorous military environment imposed on students 
        attending the senior military colleges by the colleges, 
        as well as the result of the long-standing close 
        support relationship between the Corps of Cadets at 
        each college and the Reserve Officer Training Corps 
        personnel at the colleges who serve as effective 
        leadership role models and mentors.
            (3) In recognition of the quality of the young 
        leaders produced by the senior military colleges, the 
        Department of Defense and the military services have 
        traditionally maintained special relationships with the 
        colleges, including the policy to grant active duty 
        service in the Army to graduates of the colleges who 
        desire such service and who are recommended for such 
        service by their ROTC professors of military science.
            (4) Each of the senior military colleges has 
        demonstrated an ability to adapt its systems and 
        operations to changing conditions in, and requirements 
        of, the Armed Forces without compromising the quality 
        of leaders produced and without interruption of the 
        close relationship between the colleges and the 
        Department of Defense.
    (c) Sense of Congress.--In light of the findings in 
subsection (b), it is the sense of Congress that--
            (1) the proposed initiative of the Secretary of the 
        Army to end the commitment to active duty service for 
        all graduates of senior military colleges who desire 
        such service and who are recommended for such service 
        by their ROTC professors of military science is short-
        sighted and contrary to the long-term interests of the 
        Army;
            (2) as they have in the past, the senior military 
        colleges can and will continue to accommodate to 
        changing military requirements to ensure that future 
        graduates entering military service continue to be 
        officers of superb quality who are quickly assimilated 
        by the Armed Forces and fully prepared to make 
        significant contributions to the Armed Forces through 
        extended military careers; and
            (3) decisions of the Secretary of Defense or the 
        Secretary of a military department that fundamentally 
        and unilaterally change the long-standing relationship 
        of the Armed Forces with the senior military colleges 
        are not in the best interests of the Department of 
        Defense or the Armed Forces and are patently unfair to 
        students who made decisions to enroll in the senior 
        military colleges on the basis of existing Department 
        and Armed Forces policy.
    (d) Continuation of Support for Senior Military Colleges.--
Section 2111a of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection 
        (f); and
            (2) by inserting after subsection (c) the following 
        new subsections:
    ``(d) Termination or Reduction of Program Prohibited.--The 
Secretary of Defense and the Secretaries of the military 
departments may not take or authorize any action to terminate 
or reduce a unit of the Senior Reserve Officers' Training Corps 
at a senior military college unless the termination or 
reduction is specifically requested by the college.
    ``(e) Assignment to Active Duty.--(1) The Secretary of the 
Army shall ensure that a graduate of a senior military college 
who desires to serve as a commissioned officer on active duty 
upon graduation from the college, who is medically and 
physically qualified for active duty, and who is recommended 
for such duty by the professor of military science at the 
college, shall be assigned to active duty. This paragraph shall 
apply toa member of the program at a senior military college 
who graduates from the college after March 31, 1997.
    ``(2) Nothing in this section shall be construed to 
prohibit the Secretary of the Army from requiring a member of 
the program who graduates from a senior military college to 
serve on active duty.''.
    (e) Technical Corrections.--Subsection (f) of such section, 
as redesignated by subsection (d)(1), is amended--
            (1) in paragraph (2), by striking out ``College'' 
        and inserting in lieu thereof ``University''; and
            (2) in paragraph (6), by inserting before the 
        period the following: ``and State University''.
    (f) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 2111a. Support for senior military colleges''.

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 103 of title 10, United 
States Code, is amended to read as follows:

``2111a. Support for senior military colleges.''.

SEC. 545. REPORT ON MAKING UNITED STATES NATIONALS ELIGIBLE FOR 
                    PARTICIPATION IN SENIOR RESERVE OFFICERS' TRAINING 
                    CORPS.

    (a) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the Committee on National Security of the House of 
Representatives and the Committee on Armed Services of the 
Senate a report on the utility of permitting United States 
nationals to participate in the Senior Reserve Officers' 
Training Corps program.
    (b) Required Information.--The Secretary shall include in 
the report the following information:
            (1) A brief history of the prior admission of 
        United States nationals to the Senior Reserve Officers' 
        Training Corps, including the success rate of these 
        cadets and midshipmen and how that rate compared to the 
        average success rate of cadets and midshipmen during 
        that same period.
            (2) The advantages of permitting United States 
        nationals to participate in the Senior Reserve 
        Officers' Training Corps program.
            (3) The disadvantages of permitting United States 
        nationals to participate in the Senior Reserve 
        Officers' Training Corps program.
            (4) The incremental cost of including United States 
        nationals in the Senior Reserve Officers' Training 
        Corps.
            (5) Methods of minimizing the risk that United 
        States nationals admitted to the Senior Reserve 
        Officers' Training Corps would be later disqualified 
        because of ineligibility for United States citizenship.
            (6) The recommendations of the Secretary on whether 
        United States nationals should be eligible to 
        participate in the Senior Reserve Officers' Training 
        Corps program, and if so, a legislative proposal which 
        would, if enacted, achieve that result.

SEC. 546. COORDINATION OF ESTABLISHMENT AND MAINTENANCE OF JUNIOR 
                    RESERVE OFFICERS' TRAINING CORPS UNITS TO MAXIMIZE 
                    ENROLLMENT AND ENHANCE EFFICIENCY.

    (a) Requirement.--Chapter 102 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2032. Responsibility of the Secretaries of the military 
                    departments to maximize enrollment and enhance 
                    efficiency

    ``(a) Coordination.--The Secretary of each military 
department, in establishing, maintaining, transferring, and 
terminating Junior Reserve Officers' Training Corps units under 
section 2031 of this title, shall do so in a coordinated manner 
that is designed to maximize enrollment in the Corps and to 
enhance administrative efficiency in the management of the 
Corps.
    ``(b) Consideration of New School Openings and 
Consolidations.--In carrying out subsection (a), the Secretary 
of a military department shall take into consideration--
            ``(1) openings of new schools;
            ``(2) consolidations of schools; and
            ``(3) the desirability of continuing the 
        opportunity for participation in the Corps by 
        participants whose continued participation would 
        otherwise be adversely affected by new school openings 
        and consolidations of schools.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2032. Responsibility of the Secretaries of the military departments to 
          maximize enrollment and enhance efficiency.''.

                    PART II--OTHER EDUCATION MATTERS

SEC. 551. UNITED STATES NAVAL POSTGRADUATE SCHOOL.

    (a) Authority to Admit Enlisted Members as Students.--
Section 7045 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``(a)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The Secretary may permit an enlisted member of the 
armed forces who is assigned to the Naval Postgraduate School 
or to a nearby command to receive instruction at the Naval 
Postgraduate School. Admission of enlisted members for 
instruction under this paragraph shall be on a space-available 
basis.'';
            (2) in subsection (b)--
                    (A) by striking out ``the students'' and 
                inserting in lieu thereof ``officers''; and
                    (B) by adding at the end the following new 
                sentence: ``In the case of an enlisted member 
                permitted to receive instruction at the 
                Postgraduate School, the Secretary of the Navy 
                shall charge that member only for such costs 
                and fees as the Secretary considers appropriate 
                (taking into consideration the admission of 
                enlisted members on a space-available 
                basis).''; and
            (3) in subsection (c)--
                    (A) by striking out ``officers'' both 
                places it appears and inserting in lieu thereof 
                ``members''; and
                    (B) by striking out ``same regulations'' 
                and inserting in lieu thereof ``such 
                regulations, as determined appropriate by the 
                Secretary of the Navy,''.
    (b) Clerical Amendments.--(1) The heading of section 7045 
of such title is amended to read as follows:

``Sec. 7045. Officers of the other armed forces; enlisted members: 
                    admission''.

    (2) The item relating to section 7045 in the table of 
sections at the beginning of chapter 605 of such title is 
amended to read as follows:

``7045. Officers of the other armed forces; enlisted members: 
          admission.''.

    (c) Amendment To Reflect Revised Civil Service Grade 
Structure.--Section 7043(b) of such title is amended by 
striking out ``grade GS-18 of the General Schedule under 
section 5332 of title 5'' and inserting in lieu thereof ``level 
IV of the Executive Schedule''.

SEC. 552. COMMUNITY COLLEGE OF THE AIR FORCE.

    (a) Expansion of Members Eligible for Program To Include 
Instructors at Air Force Training Schools.--Section 9315 of 
title 10, United States Code, is amended--
            (1) in subsection (a)(1), by striking out 
        ``enlisted members of the Air Force'' and inserting in 
        lieu thereof ``enlisted members described in subsection 
        (b)'';
            (2) by striking out ``(b) Subject to subsection 
        (c),'' and inserting in lieu thereof ``(c)(1) Subject 
        to paragraph (2),'';
            (3) by redesignating subsection (c) as paragraph 
        (2) and in that paragraph redesignating clauses (1) and 
        (2) as clauses (A) and (B), respectively; and
            (4) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) Members Eligible for Programs.--Subject to such other 
eligibility requirements as the Secretary concerned may 
prescribe, the following members of the armed forces are 
eligible to participate in programs of higher education under 
subsection (a)(1):
            ``(1) Enlisted members of the Air Force.
            ``(2) Enlisted members of the armed forces other 
        than the Air Force who are serving as instructors at 
        Air Force training schools.''.
    (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Establishment 
        and Mission.--'' after ``(a)''; and
            (2) in subsection (c), as redesignated by 
        subsection (a)(2), by inserting ``Conferral of 
        Degrees.--'' after ``(c)''.
    (c) Effective Date.--Subsection (b) of section 9315 of such 
title, as added by subsection (a)(4), applies with respect to 
enrollments in the Community College of the Air Force after 
March 31, 1996.

SEC. 553. PRESERVATION OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE OF 
                    MEMBERS OF THE SELECTED RESERVE SERVING ON ACTIVE 
                    DUTY IN SUPPORT OF A CONTINGENCY OPERATION.

    (a) Preservation of Educational Assistance.--Section 
16131(c)(3)(B)(i) of title 10, United States Code, is amended 
by striking out ``, in connection with the Persian Gulf War,''.
    (b) Extension of 10-Year Period of Availability.--Section 
16133(b)(4) of such title is amended--
            (1) by striking out ``(A)'';
            (2) by striking out ``, during the Persian Gulf 
        War,'';
            (3) by redesignating clauses (i) and (ii) as 
        subparagraphs (A) and (B), respectively; and
            (4) by striking out ``(B) For the purposes'' and 
        all that follows through ``title 38.''.

               PART III--TRAINING OF ARMY DRILL SERGEANTS

SEC. 556. REFORM OF ARMY DRILL SERGEANT SELECTION AND TRAINING PROCESS.

    (a) In General.--The Secretary of the Army shall reform the 
process for selection and training of drill sergeants for the 
Army.
    (b) Measures To Be Taken.--As part of such reform, the 
Secretary shall undertake the following measures (unless, in 
the case of any such measure, the Secretary determines that 
that measure would not result in improved effectiveness and 
efficiency in the drill sergeant selection and training 
process):
            (1) Review the overall process used by the 
        Department of the Army for selection of drill sergeants 
        to determine--
                    (A) whether that process is providing drill 
                sergeant candidates in sufficient quantity and 
                quality to meet the needs of the training 
                system; and
                    (B) whether duty as a drill sergeant is a 
                career-enhancing assignment (or is seen by 
                potential drill sergeant candidates as a 
                career-enhancing assignment) and what steps 
                could be taken to ensure that such duty is in 
                fact a career-enhancing assignment.
            (2) Incorporate into the selection process for all 
        drill sergeants the views and recommendations of the 
        officers and senior noncommissioned officers in the 
        chain of command of each candidate for selection 
        (particularly those of senior noncommissioned officers) 
        regarding the candidate's suitability and 
        qualifications to be a drill sergeant.
            (3) Establish a requirement for psychological 
        screening for each drill sergeant candidate.
            (4) Reform the psychological screening process for 
        drill sergeant candidates to improve the quality, 
        depth, and rigor of that screening process.
            (5) Revise the evaluation system for drill 
        sergeants in training to provide for a so-called 
        ``whole person'' assessment that gives insight into the 
        qualifications and suitability of a drill sergeant 
        candidate beyond the candidate's ability to accomplish 
        required performance tasks.
            (6) Revise the Army military personnel records 
        system so that, under conditions and circumstances to 
        be specified in regulations prescribed by the 
        Secretary, a drill sergeant trainee who fails to 
        complete the training to be a drill sergeant and is 
        denied graduation will not have the fact of that 
        failure recorded in those personnel records.
            (7) Provide each drill sergeant in training with 
        the opportunity, before or during that training, to 
        work with new recruits in initial entry training and to 
        be evaluated on that opportunity.
    (c) Report.--Not later than March 31, 1998, the Secretary 
shall submit to the Committee on National Security of the House 
of Representatives and the Committee on Armed Services of the 
Senate a report of the reforms adopted pursuant to this section 
or, in the case of any measure specified in any of paragraphs 
(1) through (7) of subsection (b) that was not adopted, the 
rationale why that measure was not adopted.

SEC. 557. TRAINING IN HUMAN RELATIONS MATTERS FOR ARMY DRILL SERGEANT 
                    TRAINEES.

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

``Sec. 4318. Drill sergeant trainees: human relations training

    ``(a) Human Relations Training Required.--The Secretary of 
the Army shall include as part of the training program for 
drill sergeants a course in human relations. The course shall 
be a minimum of two days in duration.
    ``(b) Resources.--In developing a human relations course 
under this section, the Secretary shall use the capabilities 
and expertise of the Defense Equal Opportunity Management 
Institute (DEOMI).''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``4318. Drill sergeant trainees: human relations training.''.

    (b) Effective Date.--Section 4318 of title 10, United 
States Code, as added by subsection (a), shall apply with 
respect to drill sergeant trainee classes that begin after the 
end of the 90-day period beginning on the date of the enactment 
of this Act.

 Subtitle F--Commission on Military Training and Gender-Related Issues

SEC. 561. ESTABLISHMENT AND COMPOSITION OF COMMISSION.

    (a) Establishment.--There is established a Commission on 
Military Training and Gender-Related Issues to review 
requirements and restrictions regarding cross-gender 
relationships of members of the Armed Forces, to review the 
basic training programs of the Army, Navy, Air Force, and 
Marine Corps, and to make recommendations on improvements to 
those programs, requirements, and restrictions.
    (b) Composition.--(1) The commission shall be composed of 
10 members, appointed as follows:
            (A) Five members shall be appointed jointly by the 
        chairman and ranking minority party member of the 
        Committee on National Security of the House of 
        Representatives.
            (B) Five members shall be appointed jointly by the 
        chairman and ranking minority party member of the 
        Committee on Armed Services of the Senate.
    (2) The members of the commission shall choose one of the 
members to serve as chairman.
    (3) All members of the commission shall be appointed not 
later than 45 days after the date of the enactment of this Act.
    (c) Qualifications.--Members of the commission shall be 
appointed from among private United States citizens with 
knowledge and expertise in one or more of the following:
            (1) Training of military personnel.
            (2) Social and cultural matters affecting entrance 
        into the Armed Forces and affecting military service, 
        military training, and military readiness, such 
        knowledge and expertise to have been gained through 
        recognized research, policy making and practical 
        experience, as demonstrated by retired military 
        personnel, members of the reserve components of the 
        Armed Forces, representatives from educational 
        organizations, and leaders from civilian industry and 
        other Government agencies.
            (3) Factors that define appropriate military job 
        qualifications, including physical, mental, and 
        educational factors.
            (4) Combat or other theater of war operations.
            (5) Organizational matters.
            (6) Legal matters.
            (7) Management.
            (8) Gender integration matters.
    (d) Appointments.--(1) Members of the commission shall be 
appointed for the life of the commission.
    (2) A vacancy in the membership shall not affect the 
commission's powers, but shall be filled in the same manner as 
the original appointment.

SEC. 562. DUTIES.

    (a) Functions Relating to Requirements and Restrictions 
Regarding Cross-Gender Relationships.--The commission shall 
consider issues relating to personal relationships of members 
of the Armed Forces as follows:
            (1) Review the laws, regulations, policies, 
        directives, and practices that govern personal 
        relationships between men and women in the Armed Forces 
        and personal relationships between members of the Armed 
        Forces and non-military personnel of the opposite sex.
            (2) Assess the extent to which the laws, 
        regulations, policies, and directives have been applied 
        consistently throughout the Armed Forces without regard 
        to the armed force, grade, rank, or gender of the 
        individuals involved.
            (3) Assess the reports of the independent panel, 
        the Department of Defense task force, and the review of 
        existing guidance on fraternization and adultery that 
        have been required by the Secretary of Defense.
    (b) Functions Relating to Gender-Integrated and Gender-
Segregated Basic Training.--(1) The commission shall review the 
parts of the initial entry training programs of the Army, Navy, 
Air Force, and Marine Corps that constitute the basic training 
of new recruits (in this subtitle referred to as ``basic 
training''). The review shall include a review of the basic 
training policies and practices of each of those services with 
regard to gender-integrated and gender-segregated basic 
training and, for each of the services, the effectiveness of 
gender-integrated and gender-segregated basic training.
    (2) As part of the review under paragraph (1), the 
commission shall (with respect to each of the services) take 
the following measures:
            (A) Determine how each service defines gender-
        integration and gender-segregation in the context of 
        basic training.
            (B) Determine the historical rationales for the 
        establishment and disestablishment of gender-integrated 
        or gender-segregated basic training.
            (C) Examine, with respect to each service, the 
        current rationale for the use of gender-integrated or 
        gender-segregated basic training and the rationale that 
        was current as of the time the service made a decision 
        to integrate, or to segregate, basic training by gender 
        (or as of the time of the most recent decision to 
        continue to use a gender-integrated format or a gender-
        segregated format for basic training), and, as part of 
        the examination, evaluate whether at the time of that 
        decision, the Secretary of the military department with 
        jurisdiction over that service had substantive reason 
        to believe, or has since developed data to support, 
        that gender-integrated basic training, or gender-
        segregated basic training, improves the readiness or 
        performance of operational units.
            (D) Assess whether the concept of ``training as you 
        will fight'' is a valid rationale for gender-integrated 
        basic training or whether the training requirements and 
        objectives for basic training are sufficiently 
        different from those of operational units so that such 
        concept, when balanced against other factors relating 
        to basic training, might not be a sufficient rationale 
        for gender-integrated basic training.
            (E) Identify the requirements unique to each 
        service that could affect a decision by the Secretary 
        concerned to adopt a gender-integrated or gender-
        segregated format for basic training and assess whether 
        the format in use by each service has been successful 
        in meeting those requirements.
            (F) Assess, with respect to each service, the 
        degree to which different standards have been 
        established, or if not established are in fact being 
        implemented, for males and females in basic training 
        for matters such as physical fitness, physical 
        performance (such as confidence and obstacle courses), 
        military skills (such as marksmanship and hand-grenade 
        qualifications), and nonphysical tasks required of 
        individuals and, to the degree that differing standards 
        exist or are in fact being implemented, assess the 
        effect of the use of those differing standards.
            (G) Identify the goals that each service has set 
        forth in regard to readiness, in light of the gender-
        integrated or gender-segregated format that such 
        service has adopted for basic training, and whether 
        that format contributes to the readiness of operational 
        units.
            (H) Assess the degree to which performance 
        standards in basic training are based on military 
        readiness.
            (I) Evaluate the policies of each of the services 
        regarding the assignment of adequate numbers of female 
        drill instructors in gender-integrated training units 
        who can serve as role models and mentors for female 
        trainees.
            (J) Review Department of Defense and military 
        department efforts to objectively measure or evaluate 
        the effectiveness of gender-integrated basic training, 
        as compared to gender-segregated basic training, 
        particularly with regard to the adequacy and scope of 
        the efforts and with regard to the relevancy of 
        findings to operational unit requirements, and 
        determine whether the Department of Defense and the 
        military departments are capable of measuring or 
        evaluating the effectiveness of that training format 
        objectively.
            (K) Compare the pattern of attrition in gender-
        integrated basic training units with the pattern of 
        attrition in gender-segregated basic training units and 
        assess the relevancy of the findings of such 
        comparison.
            (L) Compare the level of readiness and morale of 
        gender-integrated basic training units with the level 
        of readiness and morale of gender-segregated units, and 
        assess the relevancy of the findings of such comparison 
        and the implications, for readiness, of any differences 
        found.
            (M) Compare the experiences, policies, and 
        practices of the armed forces of other industrialized 
        nations regarding gender-integrated training with those 
        of the Army, Navy, Air Force, and Marine Corps.
            (N) Review, and take into consideration, the 
        current practices, relevant studies, and private sector 
        training concepts pertaining to gender-integrated 
        training.
            (O) Assess the feasibility and implications of 
        conducting basic training (or equivalent training) at 
        the company level and below through separate units for 
        male and female recruits, including the costs and other 
        resource commitments required to implement and conduct 
        basic training in such a manner and the implications 
        for readiness and unit cohesion.
            (P) Assess the feasibility and implications of 
        requiring drill instructors for basic training units to 
        be of the same sex as the recruits in those units if 
        the basic training were to be conducted as described in 
        subparagraph (O).
    (c) Functions Relating to Basic Training Programs 
Generally.--The commission shall review the course objectives, 
structure, and length of the basic training programs of the 
Army, Navy, Air Force, and Marine Corps. The commission shall 
also review the relationship between those basic training 
objectives and the advanced training provided in the initial 
entry training programs of each of those services. As part 
ofthat review, the commission shall (with respect to each of those 
services) take the following measures:
            (1) Determine the current end-state objectives 
        established for graduates of basic training, 
        particularly in regard to--
                    (A) physical conditioning;
                    (B) technical and physical skills 
                proficiency;
                    (C) knowledge;
                    (D) military socialization, including the 
                inculcation of service values and attitudes; 
                and
                    (E) basic combat operational requirements.
            (2) Assess whether those current end-state 
        objectives, and basic training itself, should be 
        modified (in structure, length, focus, program of 
        instruction, training methods or otherwise) based, in 
        part, on the following:
                    (A) An assessment of the perspectives of 
                operational units on the quality and 
                qualifications of the initial entry training 
                graduates being assigned to those units, 
                considering in particular whether the basic 
                training system produces graduates who arrive 
                in operational units with an appropriate level 
                of skills, physical conditioning, and degree of 
                military socialization to meet unit 
                requirements and needs.
                    (B) An assessment of the demographics, 
                backgrounds, attitudes, experience, and 
                physical fitness of new recruits entering basic 
                training, considering in particular the 
                question of whether, given the entry level 
                demographics, education, and background of new 
                recruits, the basic training systems and 
                objectives are most efficiently and effectively 
                structured and conducted to produce graduates 
                who meet service needs.
                    (C) An assessment of the perspectives of 
                personnel who conduct basic training with 
                regard to measures required to improve basic 
                training.
            (3) Assess the extent to which the initial entry 
        training programs of each of the services continue, 
        after the basic training phases of the programs, 
        effectively to reinforce and advance the military 
        socialization (including the inculcation of service 
        values and attitudes), the physical conditioning, and 
        the attainment and improvement of knowledge and 
        proficiency in fundamental military skills that are 
        begun in basic training.
    (d) Recommendations.--The commission shall prepare--
            (1) with respect to each of the Army, Navy, Air 
        Force, and Marine Corps, an evaluation of gender-
        integrated and gender-segregated basic training 
        programs, based upon the review under subsection (b);
            (2) recommendations for such changes to the current 
        system of basic training as the commission considers 
        warranted; and
            (3) recommendations for such changes to laws, 
        regulations, policies, directives, and practices 
        referred to in subsection (a)(1) as the commission 
        considers warranted.
    (e) Reports.--(1) Not later than April 15, 1998, the 
commission shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives a report setting forth a strategic plan for 
the work of the commission and the activities and initial 
findings of the commission.
    (2) Not later than September 16, 1998, the commission shall 
submit a final report to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives. The final report shall set forth the 
activities, findings, and recommendations of the commission, 
including any recommendations for congressional action and 
administrative action that the commission considers 
appropriate. The report shall specifically set forth the views 
of the Secretaries of the military departments regarding the 
matters described in subparagraphs (O) and (P) of subsection 
(b)(2).

SEC. 563. ADMINISTRATIVE MATTERS.

    (a) Meetings.--(1) The commission shall hold its first 
meeting not later than 30 days after the date on which all 
members have been appointed.
    (2) The commission shall meet upon the call of the 
chairman.
    (3) A majority of the members of the commission shall 
constitute a quorum, but a lesser number may hold meetings.
    (b) Authority of Individuals To Act for Commission.--Any 
member or agent of the commission may, if authorized by the 
commission, take any action which the commission is authorized 
to take under this title.
    (c) Powers.--(1) The commission may hold such hearings, sit 
and act at such times and places, take such testimony, and 
receive such evidence as the commission considers advisable to 
carry out its duties.
    (2) The commission may secure directly from the Department 
of Defense and any other department or agency of the Federal 
Government such information as the commission considers 
necessary to carry out its duties. Upon the request of the 
chairman of the commission, the head of a department or agency 
shall furnish the requested information expeditiously to the 
commission.
    (3) The commission may use the United States mails in the 
same manner and under the same conditions as other departments 
and agencies of the Federal Government.
    (d) Pay and Expenses of Commission Members.--(1) Each 
member of the commission who is not an employee of the 
Government shall be paid at a rate equal to the daily 
equivalent of the annual rate of basic pay prescribed for level 
IV of the Executive Schedule under section 5315 of title 5, 
United States Code, for each day (including travel time) during 
which such member is engaged in performing the duties of the 
commission.
    (2) Members and personnel of the commission may travel on 
aircraft, vehicles, or other conveyances of the Armed Forces 
when travel is necessary in the performance of a duty of the 
commission except when the cost of commercial transportation is 
less expensive.
    (3) The members of the commission may 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 commission.
    (4)(A) A member of the commission who is an annuitant 
otherwise covered by section 8344 or 8468 of title 5, United 
States Code, by reason of membership on the commission shall 
not be subject to the provisions of such section with respect 
to such membership.
    (B) A member of the commission who is a member or former 
member of a uniformed service shall not be subject to the 
provisions of subsections (b) and (c) of section 5532 of such 
title with respect to membership on the commission.
    (e) Staff and Administrative Support.--(1) The chairman of 
the commission may, without regard to civil service laws and 
regulations, appoint and terminate an executive director and up 
to three additional staff members as necessary to enable the 
commission to perform its duties. The chairman of the 
commission may fix the compensation of the executive director 
and other personnel without regard to the provisions of chapter 
51, and subchapter III of chapter 53, of title 5, United States 
Code, relating to classification of positions and General 
Schedule pay rates, except that the rate of pay may not exceed 
the maximum rate of pay for grade GS-15 under the General 
Schedule.
    (2) Upon the request of the chairman of the commission, the 
head of any department or agency of the Federal Government may 
detail, without reimbursement, any personnel of the department 
or agency to the commission to assist in carrying out its 
duties. A detail of an employee shall be without interruption 
or loss of civil service status or privilege.
    (3) The chairman of the commission may procure temporary 
and intermittent services under section 3109(b) of title 5, 
United States Code, at rates for individuals that do not exceed 
the daily equivalent of the annual rate of basic pay prescribed 
for level IV of the Executive Schedule under section 5315 of 
such title.
    (4) The Secretary of Defense shall furnish to the 
commission such administrative and support services as may be 
requested by the chairman of the commission.

SEC. 564. TERMINATION OF COMMISSION.

    The commission shall terminate 60 days after the date on 
which it submits the final report under section 562(e)(2).

SEC. 565. FUNDING.

    (a) From Department of Defense Appropriations.--Upon the 
request of the chairman of the commission, the Secretary of 
Defense shall make available to the commission, out of funds 
appropriated for the Department of Defense, such amounts as the 
commission may require to carry out its duties.
    (b) Period of Availability.--Funds made available to the 
commission shall remain available, without fiscal year 
limitation, until the date on which the commission terminates.

SEC. 566. SUBSEQUENT CONSIDERATION BY CONGRESS.

    After receipt of each report of the commission under 
section 562(e), Congress shall consider the report and, based 
upon the results of the review (and such other matters as 
Congress considers appropriate), consider whether to require by 
law that the Secretaries of the military departments conduct 
basic training on a gender-segregated or gender-integrated 
basis.

              Subtitle G--Military Decorations and Awards

SEC. 571. PURPLE HEART TO BE AWARDED ONLY TO MEMBERS OF THE ARMED 
                    FORCES.

    (a) In General.--(1) Chapter 57 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 1131. Purple Heart: limitation to members of the armed forces

    ``The decoration known as the Purple Heart (authorized to 
be awarded pursuant to Executive Order 11016) may only be 
awarded to a person who is a member of the armed forces at the 
time the person is killed or wounded under circumstances 
otherwise qualifying that person for award of the Purple 
Heart.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``1131. Purple Heart: limitation to members of the armed forces.''.

    (b) Effective Date.--Section 1131 of title 10, United 
States Code, as added by subsection (a), shall apply with 
respect to persons who are killed or wounded after the end of 
the 180-day period beginning on the date of the enactment of 
this Act.

SEC. 572. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL FOR 
                    PARTICIPATION IN OPERATION JOINT ENDEAVOR OR 
                    OPERATION JOINT GUARD.

    (a) Inclusion of Operations.--For the purpose of 
determining the eligibility of members and former members of 
the Armed Forces for the Armed Forces Expeditionary Medal, the 
Secretary of Defense shall designate participation in Operation 
Joint Endeavor or Operation Joint Guard in the Republic of 
Bosnia and Herzegovina, and in such other areas in the region 
as the Secretary considers appropriate, as service in an area 
that meets the general requirements for the award of that 
medal.
    (b) Individual Determination.--The Secretary of the 
military department concerned shall determine whether 
individual members or former members of the Armed Forces who 
participated in Operation Joint Endeavor or Operation Joint 
Guard meet the individual service requirements for award of the 
Armed Forces Expeditionary Medal as established in applicable 
regulations. A member or former member shall be considered to 
have participated in Operation Joint Endeavor or Operation 
Joint Guard if the member--
            (1) was deployed in the Republic of Bosnia and 
        Herzegovina, or in such other area in the region as the 
        Secretary of Defense considers appropriate, in direct 
        support of one or both of the operations;
            (2) served on board a United States naval vessel 
        operating in the Adriatic Sea in direct support of one 
        or both of the operations; or
            (3) operated in airspace above the Republic of 
        Bosnia and Herzegovina, or in such other area in the 
        region as the Secretary of Defense considers 
        appropriate, while the operations were in effect.
    (c) Operations Defined.--For purposes of this section:
            (1) The term ``Operation Joint Endeavor'' means 
        operations of the United States Armed Forces conducted 
        in the Republic of Bosnia and Herzegovina during the 
        period beginning on November 20, 1995, and ending on 
        December 20, 1996, to assist in implementing the 
        General Framework Agreement and Associated Annexes, 
        initialed on November 21, 1995, in Dayton, Ohio.
            (2) The term ``Operation Joint Guard'' means 
        operations of the United States Armed Forces conducted 
        in the Republic of Bosnia and Herzegovina as a 
        successor to Operation Joint Endeavor during the period 
        beginning on December 20, 1996, and ending on such date 
        as the Secretary of Defense may designate.

SEC. 573. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
                    TO SPECIFIED PERSONS.

    (a) Waiver of Time Limitation.--Any limitation established 
by law or policy for the time within which a recommendation for 
the award of a military decoration or award must be submitted 
shall not apply in the case of awards of decorations described 
in subsections (b), (c), and (d), the award of each such 
decoration having been determined by the Secretary of the 
military department concerned to be warranted in accordance 
with section 1130 of title 10, United States Code.
    (b) Silver Star Medal.--Subsection (a) applies to the award 
of the Silver Star Medal as follows:
            (1) To Joseph M. Moll, Jr. of Milford, New Jersey, 
        for service during World War II.
            (2) To Philip Yolinsky of Hollywood, Florida, for 
        service during the Korean Conflict.
            (3) To Robert Norman of Reno, Nevada, for service 
        during World War II.
    (c) Navy and Marine Corps Medal.--Subsection (a) applies to 
the award of the Navy and Marine Corps Medal to Gary A. 
Gruenwald of Damascus, Maryland, for service in Tunisia in 
October 1977.
    (d) Distinguished Flying Cross.--Subsection (a) applies to 
awards of the Distinguished Flying Cross for service during 
World War II or Korea (including multiple awards to the same 
individual) in the case of each individual concerning whom the 
Secretary of the Navy (or an officer of the Navy acting on 
behalf of the Secretary) submitted to the Committee on National 
Security of the House of Representatives and the Committee on 
Armed Services of the Senate, before the date of the enactment 
of this Act, a notice as provided in section 1130(b) of title 
10, United States Code, that the award of the Distinguished 
Flying Cross to that individual is warranted and that a waiver 
of time restrictions prescribed by law for recommendation for 
such award is recommended.

SEC. 574. CLARIFICATION OF ELIGIBILITY OF MEMBERS OF READY RESERVE FOR 
                    AWARD OF SERVICE MEDAL FOR HEROISM.

    (a) Soldier's Medal.--Section 3750(a) of title 10, United 
States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The authority in paragraph (1) includes authority to 
award the medal to a member of the Ready Reserve who was not in 
a duty status defined in section 101(d) of this title when the 
member distinguished himself by heroism.''.
    (b) Navy and Marine Corps Medal.--Section 6246 of such 
title is amended--
            (1) by designating the text of the section as 
        subsection (a); and
            (2) by adding at the end the following new 
        subsection:
    ``(b) The authority in subsection (a) includes authority to 
award the medal to a member of the Ready Reserve who was not in 
a duty status defined in section 101(d) of this title when the 
member distinguished himself by heroism.''.
    (c) Airman's Medal.--Section 8750(a) of such title is 
amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The authority in paragraph (1) includes authority to 
award the medal to a member of the Ready Reserve who was not in 
a duty status defined in section 101(d) of this title when the 
member distinguished himself by heroism.''.

SEC. 575. ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT OF RECOMMENDATIONS 
                    FOR DECORATIONS AND AWARDS FOR CERTAIN MILITARY 
                    INTELLIGENCE PERSONNEL.

    Section 523(b)(1) of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 311; 10 
U.S.C. 1130 note) is amended by striking out ``during the one-
year period beginning on the date of the enactment of this 
Act'' and inserting in lieu thereof ``during the period 
beginning on February 10, 1996, and ending on February 9, 
1998''.

SEC. 576. ELIGIBILITY OF CERTAIN WORLD WAR II MILITARY ORGANIZATIONS 
                    FOR AWARD OF UNIT DECORATIONS.

    (a) Authority.--A unit decoration may be awarded for any 
unit or other organization of the Armed Forces (such as the 
Military Intelligence Service of the Army) that (1) supported 
the planning or execution of combat operations during World War 
II primarily through unit personnel who were attached to other 
units of the Armed Forces or of other allied armed forces, and 
(2) is not otherwise eligible for award of the decoration by 
reason of not usually having been deployed as a unit in support 
of such operations.
    (b) Time for Submission of Recommendation.--Any 
recommendation for award of a unit decoration under subsection 
(a) shall be submitted to the Secretary concerned (as defined 
in section 101(a)(9) of title 10, United States Code), or to 
such other official as the Secretary concerned may designate, 
not later than two years after the date of the enactment of 
this Act.

SEC. 577. RETROACTIVITY OF MEDAL OF HONOR SPECIAL PENSION.

    (a) Entitlement.--In the case of Vernon J. Baker, Edward A. 
Carter, Junior, and Charles L. Thomas, who were awarded the 
Medal of Honor pursuant to section 561 of Public Law 104-201 
(110 Stat. 2529) and whose names have been entered and recorded 
on the Army, Navy, Air Force, and Coast Guard Medal of Honor 
Roll, the entitlement of those persons to the special pension 
provided under section 1562 of title 38, United States Code 
(and antecedent provisions of law), shall be effective as 
follows:
            (1) In the case of Vernon J. Baker, for months that 
        begin after April 1945.
            (2) In the case of Edward A. Carter, Junior, for 
        months that begin after March 1945.
            (3) In the case of Charles L. Thomas, for months 
        that begin after December 1944.
    (b) Amount.--The amount of the special pension payable 
under subsection (a) for a month beginning before the date of 
the enactment of this Act shall be the amount of the special 
pension provided by law for that month for persons entered and 
recorded on the Army, Navy, Air Force, and Coast Guard Medal of 
Honor Roll (or an antecedent Medal of Honor Roll required by 
law).
    (c) Payment to Next of Kin.--In the case of a person 
referred to in subsection (a) who died before receiving full 
payment of the pension pursuant to this section, the Secretary 
of Veterans Affairs shall pay the total amount of the accrued 
pension, upon receipt of application for payment within one 
year after the date of the enactment of this Act, to the 
deceased person's spouse or, if there is no surviving spouse, 
then to the deceased person's children, per stirpes, in equal 
shares.

                  Subtitle H--Military Justice Matters

SEC. 581. ESTABLISHMENT OF SENTENCE OF CONFINEMENT FOR LIFE WITHOUT 
                    ELIGIBILITY FOR PAROLE.

    (a) Establishment of Sentence.--(1) Chapter 47 of title 10, 
United States Code (the Uniform Code of Military Justice), is 
amended by inserting after section 856 (article 56) the 
following new section (article):

``Sec. 856a. Art. 56a. Sentence of confinement for life without 
                    eligibility for parole

    ``(a) For any offense for which a sentence of confinement 
for life may be adjudged, a court-martial may adjudge a 
sentence of confinement for life without eligibility for 
parole.
    ``(b) An accused who is sentenced to confinement for life 
without eligibility for parole shall be confined for the 
remainder of the accused's life unless--
            ``(1) the sentence is set aside or otherwise 
        modified as a result of--
                    ``(A) action taken by the convening 
                authority, the Secretary concerned, or another 
                person authorized to act under section 860 of 
                this title (article 60); or
                    ``(B) any other action taken during post-
                trial procedure and review under any other 
                provision of subchapter IX;
            ``(2) the sentence is set aside or otherwise 
        modified as a result of action taken by a Court of 
        Criminal Appeals, the Court of Appeals for the Armed 
        Forces, or the Supreme Court; or
            ``(3) the accused is pardoned.''.
    (2) The table of sections at the beginning of subchapter 
VIII of such chapter is amended by inserting after the item 
relating to section 856 (article 56) the following new item:

``856a. 56a. Sentence of confinement for life without eligibility for 
          parole.''.

    (b) Effective Date.--Section 856a of title 10, United 
States Code (article 56a of the Uniform Code of Military 
Justice), as added by subsection (a), shall be applicable only 
with respect to an offense committed after the date of the 
enactment of this Act.

SEC. 582. LIMITATION ON APPEAL OF DENIAL OF PAROLE FOR OFFENDERS 
                    SERVING LIFE SENTENCE.

    (a) Exclusive Authority To Grant Parole on Appeal of 
Denial.--Section 952 of title 10, United States Code, is 
amended--
            (1) by inserting ``(a)'' before ``The Secretary''; 
        and
            (2) by adding at the end the following new 
        subsection:
    ``(b) In a case in which parole for an offender serving a 
sentence of confinement for life is denied, only the President 
or the Secretary concerned may grant the offender parole on 
appeal of that denial. The authority to grant parole on appeal 
in such a case may not be delegated.''.
    (b) Effective Date.--Subsection (b) of section 952 of title 
10, United States Code (as added by subsection (a)), shall 
apply only with respect to any decision to deny parole made 
after the date of the enactment of this Act.

                       Subtitle I--Other Matters

SEC. 591. SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.

    (a) Investigations.--(1) Part II of subtitle A of title 10, 
United States Code, is amended by inserting after chapter 79 
the following new chapter:

``CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES

``Sec.
``1561. Complaints of sexual harassment: investigation by commanding 
          officers.

``Sec. 1561. Complaints of sexual harassment: investigation by 
                    commanding officers

    ``(a) Action on Complaints Alleging Sexual Harassment.--A 
commanding officer or officer in charge of a unit, vessel, 
facility, or area of the Army, Navy, Air Force, or Marine Corps 
who receives from a member of the command or a civilian 
employee under the supervision of the officer a complaint 
alleging sexual harassment by a member of the armed forces or a 
civilian employee of the Department of Defense shall carry out 
an investigation of the matter in accordance with this section.
    ``(b) Commencement of Investigation.--To the extent 
practicable, a commanding officer or officer in charge 
receiving such a complaint shall, within 72 hours after receipt 
of the complaint--
            ``(1) forward the complaint or a detailed 
        description of the allegation to the next superior 
        officer in the chain of command who is authorized to 
        convene a general court-martial;
            ``(2) commence, or cause the commencement of, an 
        investigation of the complaint; and
            ``(3) advise the complainant of the commencement of 
        the investigation.
    ``(c) Duration of Investigation.--To the extent 
practicable, a commanding officer or officer in charge 
receiving such a complaint shall ensure that the investigation 
of the complaint is completed not later than 14 days after the 
date on which the investigation is commenced.
    ``(d) Report on Investigation.--To the extent practicable, 
a commanding officer or officer in charge receiving such a 
complaint shall--
            ``(1) submit a final report on the results of the 
        investigation, including any action taken as a result 
        of the investigation, to the next superior officer 
        referred to in subsection (b)(1) within 20 days after 
        the date on which the investigation is commenced; or
            ``(2) submit a report on the progress made in 
        completing the investigation to the next superior 
        officer referred to in subsection (b)(1) within 20 days 
        after the date on which the investigation is commenced 
        and every 14 days thereafter until the investigation is 
        completed and, upon completion of the investigation, 
        then submit a final report on the results of the 
        investigation, including any action taken as a result 
        of the investigation, to that next superior officer.
    ``(e) Sexual Harassment Defined.--In this section, the term 
`sexual harassment' means any of the following:
            ``(1) Conduct (constituting a form of sex 
        discrimination) that--
                    ``(A) involves unwelcome sexual advances, 
                requests for sexual favors, and deliberate or 
                repeated offensive comments or gestures of a 
                sexual nature when--
                            ``(i) submission to such conduct is 
                        made either explicitly or implicitly a 
                        term or condition of a person's job, 
                        pay, or career;
                            ``(ii) submission to or rejection 
                        of such conduct by a person is used as 
                        a basis for career or employment 
                        decisions affecting that person; or
                            ``(iii) such conduct has the 
                        purpose or effect of unreasonably 
                        interfering with an individual's work 
                        performance or creates an intimidating, 
                        hostile, or offensive working 
                        environment; and
                    ``(B) is so severe or pervasive that a 
                reasonable person would perceive, and the 
                victim does perceive, the work environment as 
                hostile or offensive.
            ``(2) Any use or condonation, by any person in a 
        supervisory or command position, of any form of sexual 
        behavior to control, influence, or affect the career, 
        pay, or job of a member of the armed forces or a 
        civilian employee of the Department of Defense.
            ``(3) Any deliberate or repeated unwelcome verbal 
        comment or gesture of a sexual nature in the workplace 
        by any member of the armed forces or civilian employee 
        of the Department of Defense.''.
    (2) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part II of subtitle A, of such title 
are amended by inserting after the item relating to chapter 79 
the following new item:

``80. Miscellaneous Investigation Requirements and Other Duties..1561''.

    (b) Reports.--(1) Not later than January 1 of each of 1998 
and 1999, each officer receiving a complaint forwarded in 
accordance with section 1561(b) of title 10, United States 
Code, as added by subsection (a), during the preceding year 
shall submit to the Secretary of the military department 
concerned a report on all such complaints and the 
investigations of such complaints (including the results of the 
investigations, in cases of investigations completed during 
such preceding year).
    (2)(A) Not later than March 1 of each of 1998 and 1999, 
each Secretary receiving a report under paragraph (1) for a 
year shall submit to the Secretary of Defense a report on all 
such reports so received.
    (B) Not later than the April 1 following receipt of a 
report for a year under subparagraph (A), the Secretary of 
Defense shall transmit to Congress all such reports received 
for the year under subparagraph (A) together with the 
Secretary's assessment of each such report.

SEC. 592. SENSE OF THE SENATE REGARDING STUDY OF MATTERS RELATING TO 
                    GENDER EQUITY IN THE ARMED FORCES.

    (a) Findings.--The Senate makes the following findings:
            (1) In the all-volunteer force, women play an 
        integral role in the Armed Forces.
            (2) With increasing numbers of women in the Armed 
        Forces, questions arise concerning inequalities, and 
        perceived inequalities, between the treatment of men 
        and women in the Armed Forces.
    (b) Sense of the Senate.--It is the sense of the Senate 
that the Comptroller General should--
            (1) conduct a study on any inequality, or 
        perception of inequality, in the treatment of men and 
        women in the Armed Forces that arises out of the 
        statutes and regulations governing the Armed Forces; 
        and
            (2) submit to the Senate a report on the study not 
        later than one year after the date of the enactment of 
        this Act.

SEC. 593. AUTHORITY FOR PERSONNEL TO PARTICIPATE IN MANAGEMENT OF 
                    CERTAIN NON-FEDERAL ENTITIES.

    (a) Military Personnel.--(1) Chapter 53 of title 10, United 
States Code, is amended by inserting after section 1032 the 
following new section:

``Sec. 1033. Participation in management of specified non-Federal 
                    entities: authorized activities

    ``(a) Authorization.--The Secretary concerned may authorize 
a member of the armed forces under the Secretary's jurisdiction 
to serve without compensation as a director, officer, or 
trustee, or to otherwise participate, in the management of an 
entity designated under subsection (b). Any such authorization 
shall be made on a case-by-case basis, for a particular member 
to participate in a specific capacity with a specific 
designated entity. Such authorization may be made only for the 
purpose of providing oversight and advice to, and coordination 
with, the designated entity, and participation of the member in 
the activities of the designated entity may not extend to 
participation in the day-to-day operations of the entity.
    ``(b) Designated Entities.--(1) The Secretary of Defense, 
and the Secretary of Transportation in the case of the Coast 
Guard when it is not operating as a service in the Navy, shall 
designate those entities for which authorization under 
subsection (a) may be provided. The list of entities so 
designated may not be revised more frequently than 
semiannually. In making such designations, the Secretary shall 
designate each military welfare society and may designate any 
other entity described in paragraph (3). No other entities may 
be designated.
    ``(2) In this section, the term `military welfare society' 
means the following:
            ``(A) Army Emergency Relief.
            ``(B) Air Force Aid Society, Inc.
            ``(C) Navy-Marine Corps Relief Society.
            ``(D) Coast Guard Mutual Assistance.
    ``(3) An entity described in this paragraph is an entity 
that is not operated for profit and is any of the following:
            ``(A) An entity that regulates and supports the 
        athletic programs of the service academies (including 
        athletic conferences).
            ``(B) An entity that regulates international 
        athletic competitions.
            ``(C) An entity that accredits service academies 
        and other schools of the armed forces (including 
        regional accrediting agencies).
            ``(D) An entity that (i) regulates the performance, 
        standards, and policies of military health care 
        (including health care associations and professional 
        societies), and (ii) has designated the position or 
        capacity in that entity in which a member of the armed 
        forces may serve if authorized under subsection (a).
    ``(c) Publication of Designated Entities and of Authorized 
Persons.--A designation of an entity under subsection (b), and 
an authorization under subsection (a) of a member of the armed 
forces to participate in the management of such an entity, 
shall be published in the Federal Register.
    ``(d) Regulations.--The Secretary of Defense, and the 
Secretary of Transportation in the case of the Coast Guard when 
it is not operating as a service in the Navy, shall prescribe 
regulations to carry out this section.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 1032 
the following new item:

``1033. Participation in management of specified non-Federal entities: 
          authorized activities.''.

    (b) Civilian Personnel.--(1) Chapter 81 of such title is 
amended by inserting after section 1588 the following new 
section:

``Sec. 1589. Participation in management of specified non-Federal 
                    entities: authorized activities

    ``(a) Authorization.--(1) The Secretary concerned may 
authorize an employee described in paragraph (2) to serve 
without compensation as a director, officer, or trustee, or to 
otherwise participate, in the management of an entity 
designated under subsection (b). Any such authorization shall 
be made on a case-by-case basis, for a particular employee to 
participate in a specific capacity with a specific designated 
entity. Such authorization may be made only for the purpose of 
providing oversight and advice to, and coordination with, the 
designated entity, and participation of the employee in the 
activities of the designated entity may not extend to 
participation in the day-to-day operations of the entity.
    ``(2) Paragraph (1) applies to any employee of the 
Department of Defense or, in the case of the Coast Guard when 
not operating as a service in the Navy, of the Department of 
Transportation. For purposes of this section, the term 
`employee' includes a civilian officer.
    ``(b) Designated Entities.--The Secretary of Defense, and 
the Secretary of Transportation in the case of the Coast Guard 
when it is not operating as a service in the Navy, shall 
designate those entities for which authorization under 
subsection (a) may be provided. The list of entities so 
designated may not be revised more frequently than 
semiannually. In making such designations, the Secretary shall 
designate each military welfare society named in paragraph (2) 
of section 1033(b) of this title and may designate any other 
entity described in paragraph (3) of such section. No other 
entities may be designated.
    ``(c) Publication of Designated Entities and of Authorized 
Persons.--A designation of an entity under subsection (b), and 
an authorization under subsection (a) of an employee to 
participate in the management of such an entity, shall be 
published in the Federal Register.
    ``(d) Civilians Outside the Military Departments.--In this 
section, the term `Secretary concerned' includes the Secretary 
of Defense with respect to employees of the Department of 
Defense who are not employees of a military department.
    ``(e) Regulations.--The Secretary of Defense, and the 
Secretary of Transportation in the case of the Coast Guardwhen 
it is not operating as a service in the Navy, shall prescribe 
regulations to carry out this section.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 1588 
the following new item:

``1589. Participation in management of specified non-Federal entities: 
          authorized activities.''.

SEC. 594. TREATMENT OF PARTICIPATION OF MEMBERS IN DEPARTMENT OF 
                    DEFENSE CIVIL MILITARY PROGRAMS.

    Section 2012 of title 10, United States Code, is amended--
            (1) by redesignating subsections (g) and (h) as 
        subsections (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following 
        new subsection:
    ``(g) Treatment of Member's Participation in Provision of 
Support or Services.--(1) The Secretary of a military 
department may not require or request a member of the armed 
forces to submit for consideration by a selection board 
(including a promotion board, command selection board, or any 
other kind of selection board) evidence of the member's 
participation in the provision of support and services to non-
Department of Defense organizations and activities under this 
section or the member's involvement in, or support of, other 
community relations and public affairs activities of the armed 
forces.
    ``(2) Paragraph (1) does not prevent a selection board from 
considering material submitted voluntarily by a member of the 
armed forces which provides evidence of the participation of 
that member or another member in activities described in that 
paragraph.''.

SEC. 595. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE CIVIL 
                    MILITARY PROGRAMS.

    (a) Study Required.--The Comptroller General shall conduct 
a study to evaluate the following:
            (1) The nature, extent, and cost to the Department 
        of Defense of the support and services being provided 
        by units and members of the Armed Forces to non-
        Department of Defense organizations and activities 
        under the authority of section 2012 of title 10, United 
        States Code.
            (2) The degree to which the Armed Forces are in 
        compliance with the requirements of such section in the 
        provision of such support and services, especially the 
        requirements that the assistance meet specific 
        requirements relative to military training and that the 
        assistance provided be incidental to military training.
            (3) The degree to which the regulations and 
        procedures for implementing such section, as required 
        by subsection (f) of such section, are consistent with 
        the requirements of such section.
            (4) The effectiveness of the Secretary of Defense 
        and the Secretaries of the military departments in 
        conducting oversight of the implementation of such 
        section, and the provision of such support and services 
        under such section, to ensure compliance with the 
        requirements of such section.
    (b) Submission of Report.--Not later than March 31, 1998, 
the Comptroller General shall submit to Congress a report 
containing the results of the study required by subsection (a).

SEC. 596. ESTABLISHMENT OF PUBLIC AFFAIRS SPECIALTY IN THE ARMY.

    (a) New Specialty.--Chapter 307 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 3083. Public Affairs Specialty

    ``There is a career field in the Army known as the Public 
Affairs Specialty. Members of the Army with the Public Affairs 
Specialty are--
            ``(1) the Chief of Public Affairs;
            ``(2) commissioned officers of the Army in the 
        grade of major or above who are selected and 
        specifically educated, trained, and experienced to 
        perform as professional public affairs officers for the 
        remainder of their careers; and
            ``(3) other members of the Army assigned to public 
        affairs positions by the Secretary of the Army.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``3083. Public Affairs Specialty.''.

SEC. 597. GRADE OF DEFENSE ATTACHE IN FRANCE.

    (a) In General.--Chapter 41 of title 10, United States 
Code, is amended by inserting after section 713 the following 
new section:

``Sec. 714. Defense attache in France: required grade

    ``An officer may not be selected for assignment to the 
position of defense attache to the United States embassy in 
France unless the officer holds (or is on a promotion list for 
promotion to) the grade of brigadier general or, in the case of 
the Navy, rear admiral (lower half).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 713 the following new item:

``714. Defense attache in France: required grade.''.

SEC. 598. REPORT ON CREW REQUIREMENTS OF WC-130J AIRCRAFT.

    (a) Study.--The Secretary of the Air Force shall conduct a 
study of the crew requirements for WC-130J aircraft to be 
procured for assignment to the aerial weather reconnaissance 
mission involving the eyewall penetration of tropical cyclones. 
The study shall include study of the anticipated operation of 
WC-130J aircraft in weather reconnaissance missions configured 
to carry five crewmembers, including a navigator. In carrying 
out the study, the Secretary shall provide for participation by 
members of the Armed Forces currently assigned to units engaged 
in weather reconnaissance operations.
    (b) Report.--The Secretary shall submit to Congress a 
report on the results of the study. The Secretary shall 
includein the report the views of members of the Armed Forces currently 
assigned to units engaged in weather reconnaissance operations who 
participated in the study. If as a result of the study the Secretary 
determines that there are crewmembers assigned to weather 
reconnaissance duties in excess of the crew requirements that will be 
applicable for WC-130J aircraft, the Secretary shall include in the 
report a plan for retraining or reassignment of those crewmembers. The 
study shall be submitted not later than September 30, 1998.

SEC. 599. IMPROVEMENT OF MISSING PERSONS AUTHORITIES APPLICABLE TO 
                    DEPARTMENT OF DEFENSE.

    (a) Applicability to Department of Defense Civilian 
Employees and Contractor Employees.--(1) Section 1501 of title 
10, United States Code, is amended--
            (A) by striking out subsection (c) and inserting in 
        lieu thereof the following:
    ``(c) Covered Persons.--(1) Section 1502 of this title 
applies in the case of any member of the armed forces on active 
duty--
            ``(A) who becomes involuntarily absent as a result 
        of a hostile action or under circumstances suggesting 
        that the involuntary absence is a result of a hostile 
        action; and
            ``(B) whose status is undetermined or who is 
        unaccounted for.
    ``(2) Section 1502 of this title applies in the case of any 
other person who is a citizen of the United States and a 
civilian officer or employee of the Department of Defense or 
(subject to paragraph (3)) an employee of a contractor of the 
Department of Defense--
            ``(A) who serves in direct support of, or 
        accompanies, the armed forces in the field under orders 
        and becomes involuntarily absent as a result of a 
        hostile action or under circumstances suggesting that 
        the involuntary absence is a result of a hostile 
        action; and
            ``(B) whose status is undetermined or who is 
        unaccounted for.
    ``(3) The Secretary of Defense shall determine, with regard 
to a pending or ongoing military operation, the specific 
employees, or groups of employees, of contractors of the 
Department of Defense to be considered to be covered by this 
subsection.''; and
            (B) by adding at the end the following new 
        subsection:
    ``(f) Secretary Concerned.--In this chapter, the term 
`Secretary concerned' includes, in the case of a civilian 
officer or employee of the Department of Defense or an employee 
of a contractor of the Department of Defense, the Secretary of 
the military department or head of the element of the 
Department of Defense employing the officer or employee or 
contracting with the contractor, as the case may be.''.
    (2) Section 1503(c) of such title is amended--
            (A) in paragraph (1), by striking out ``one 
        military officer'' and inserting in lieu thereof ``one 
        individual described in paragraph (2)'';
            (B) by redesignating paragraphs (2) and (3) as 
        paragraphs (3) and (4), respectively; and
            (C) by inserting after paragraph (1) the following 
        new paragraph (2):
    ``(2) An individual referred to in paragraph (1) is the 
following:
            ``(A) A military officer, in the case of an inquiry 
        with respect to a member of the armed forces.
            ``(B) A civilian, in the case of an inquiry with 
        respect to a civilian employee of the Department of 
        Defense or of a contractor of the Department of 
        Defense.''.
    (3) Section 1504(d) of such title is amended--
            (A) in paragraph (1), by striking out ``who are'' 
        and all that follows in that paragraph and inserting in 
        lieu thereof ``as follows:
            ``(A) In the case of a board that will inquire into 
        the whereabouts and status of one or more members of 
        the armed forces (and no civilians described in 
        subparagraph (B)), the board shall be composed of 
        officers having the grade of major or lieutenant 
        commander or above.
            ``(B) In the case of a board that will inquire into 
        the whereabouts and status of one or more civilian 
        employees of the Department of Defense or contractors 
        of the Department of Defense (and no members of the 
        armed forces), the board shall be composed of--
                    ``(i) not less than three employees of the 
                Department of Defense whose rate of annual pay 
                is equal to or greater than the rate of annual 
                pay payable for grade GS-13 of the General 
                Schedule under section 5332 of title 5; and
                    ``(ii) such members of the armed forces as 
                the Secretary considers advisable.
            ``(C) In the case of a board that will inquire into 
        the whereabouts and status of both one or more members 
        of the armed forces and one or more civilians described 
        in subparagraph (B)--
                    ``(i) the board shall include at least one 
                officer described in subparagraph (A) and at 
                least one employee of the Department of Defense 
                described in subparagraph (B)(i); and
                    ``(ii) the ratio of such officers to such 
                employees on the board shall be roughly 
                proportional to the ratio of the number of 
                members of the armed forces who are subjects of 
                the board's inquiry to the number of civilians 
                who are subjects of the board's inquiry.''; and
            (B) in paragraph (4), by striking out ``section 
        1503(c)(3)'' and inserting in lieu thereof ``section 
        1503(c)(4)''.
    (4) Paragraph (1) of section 1513 of such title is amended 
to read as follows:
            ``(1) The term `missing person' means--
                    ``(A) a member of the armed forces on 
                active duty who is in a missing status; or
                    ``(B) a civilian employee of the Department 
                of Defense or an employee of a contractor of 
                the Department of Defense who serves in direct 
                support of, or accompanies, the armed forces in 
                the field under orders and who is in a missing 
                status.

        Such term includes an unaccounted for person described 
        in section 1509(b) of this title, under the 
        circumstances specified in the last sentence of section 
        1509(a) of this title.''.
    (b) Transmission to Theater Component Commander of Advisory 
Copy of Missing Person Report.--(1) Section 1502 of such title 
is amended--
            (A) by redesignating subsection (b) as subsection 
        (c); and
            (B) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) Transmission of Advisory Copy to Theater Component 
Commander.--When transmitting a report under subsection (a)(2) 
recommending that a person be placed in a missing status, the 
commander transmitting that report shall transmit an advisory 
copy of the report to the theater component commander with 
jurisdiction over the missing person.''.
    (2) Section 1513 of such title is amended by adding at the 
end the following new paragraph:
            ``(8) The term `theater component commander' means, 
        with respect to any of the combatant commands, an 
        officer of any of the armed forces who (A) is commander 
        of all forces of that armed force assigned to that 
        combatant command, and (B) is directly subordinate to 
        the commander of the combatant command.''.
    (c) Information To Accompany Recommendation of Status of 
Death.--Section 1507(b) of such title is amended adding at the 
end the following new paragraphs:
            ``(3) A description of the location of the body, if 
        recovered.
            ``(4) If the body has been recovered and is not 
        identifiable through visual means, a certification by a 
        forensic pathologist that the body recovered is that of 
        the missing person. In determining whether to make such 
        a certification, the forensic pathologist shall 
        consider, as determined necessary by the Secretary of 
        the military department concerned, additional evidence 
        and information provided by appropriate specialists in 
        forensic medicine or other appropriate medical 
        sciences.''.
    (d) Missing Person's Counsel.--(1) Sections 1503(f)(1) and 
1504(f)(1) of such title are amended by adding at the end the 
following: ``The identity of counsel appointed under this 
paragraph for a missing person shall be made known to the 
missing person's primary next of kin and any other previously 
designated person of the person.''.
    (2) Section 1503(f)(4) of such title is amended by adding 
at the end the following: ``The primary next of kin of a 
missing person and any other previously designated person of 
the missing person shall have the right to submit information 
to the missing person's counsel relative to the disappearance 
or status of the missing person.''.
    (e) Scope of Preenactment Review.--(1) Section 1509 of such 
title is amended by striking out subsection (a) and inserting 
in lieu thereof the following:
    ``(a) Review of Status.--(1) If new information (as defined 
in paragraph (2)) is found or received that may be related to 
one or more unaccounted for persons described in subsection (b) 
(whether or not such information specifically relates (or may 
specifically relate) to any particular such unaccounted for 
person), that information shall be provided to the Secretary of 
Defense. Upon receipt of such information, the Secretary shall 
ensure that the information is treated under paragraphs (2) and 
(3) of section 1505(c) of this title and under section 1505(d) 
of this title in the same manner as information received under 
paragraph (1) of section 1505(c) of this title. For purposes of 
the applicability of other provisions of this chapter in such a 
case, each such unaccounted for person to whom the new 
information may be related shall be considered to be a missing 
person.
    ``(2) For purposes of this subsection, new information is 
information that is credible and that--
            ``(A) is found or received after the date of the 
        enactment of the National Defense Authorization Act 
forFiscal Year 1998 by a United States intelligence agency, by a 
Department of Defense agency, or by a person specified in section 
1504(g) of this title; or
            ``(B) is identified after the date of the enactment 
        of the National Defense Authorization Act for Fiscal 
        Year 1998 in records of the United States as 
        information that could be relevant to the case of one 
        or more unaccounted for persons described in subsection 
        (b).''.
    (2) Such section is further amended by adding at the end 
the following new subsection:
    ``(d) Establishment of Personnel Files for Korean Conflict 
Cases.--The Secretary of Defense shall ensure that a personnel 
file is established for each unaccounted for person who is 
described in subsection (b)(1) if the Secretary possesses 
information relevant to that person's status. In the case of a 
person described in subsection (b)(1) for whom a personnel file 
does not exist, the Secretary shall create a personnel file for 
such person upon receipt of new information as provided in 
subsection (a). Each such file shall be handled in accordance 
with, and subject to the provisions of, section 1506 of this 
title in the same manner as applies to the file of a missing 
person.''.
    (f) Withholding of Classified Information.--Section 1506(b) 
of such title is amended--
            (1) by inserting ``(1)'' before ``The Secretary'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively; and
            (3) by adding at the end the following:
    ``(2) If classified information withheld under this 
subsection refers to one or more unnamed missing persons, the 
Secretary shall ensure that notice of that withheld 
information, and notice of the date of the most recent review 
of the classification of that withheld information, is made 
reasonably accessible to the primary next of kin, members of 
the immediate family, and the previously designated person.''.
    (g) Withholding of Privileged Information.--Section 1506(d) 
of such title is amended--
            (1) in paragraph (2)--
                    (A) by inserting ``or about unnamed missing 
                persons'' in the first sentence after ``the 
                debriefing report'';
                    (B) by striking out ``the missing person'' 
                in the second sentence and inserting in lieu 
                thereof ``each missing person named in the 
                debriefing report''; and
                    (C) by adding at the end the following new 
                sentence: ``Any information contained in the 
                extract of the debriefing report that pertains 
                to unnamed missing persons shall be made 
                reasonably accessible to the primary next of 
                kin, members of the immediate family, and the 
                previously designated person.''; and
            (2) in paragraph (3), by inserting ``, or part of a 
        debriefing report,'' after ``a debriefing report''.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Reform of basic allowance for subsistence.
Sec. 603. Consolidation of basic allowance for quarters, variable 
          housing allowance, and overseas housing allowances.
Sec. 604. Revision of authority to adjust compensation necessitated by 
          reform of subsistence and housing allowances.
Sec. 605. Protection of total compensation of members while performing 
          certain duty.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
          authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
          authorities for nurse officer candidates, registered nurses, 
          and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
          bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive 
          pay for certain members.
Sec. 615. Increase in aviation career incentive pay.
Sec. 616. Modification of aviation officer retention bonus.
Sec. 617. Availability of multiyear retention bonus for dental officers.
Sec. 618. Increase in variable and additional special pays for certain 
          dental officers.
Sec. 619. Availability of special pay for duty at designated hardship 
          duty locations.
Sec. 620. Definition of sea duty for purposes of career sea pay.
Sec. 621. Modification of Selected Reserve reenlistment bonus.
Sec. 622. Modification of Selected Reserve enlistment bonus for former 
          enlisted members.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard 
          Reserve.
Sec. 624. Increase in special pay and bonuses for nuclear-qualified 
          officers.
Sec. 625. Provision of bonuses in lieu of special pay for enlisted 
          members extending tours of duty at designated locations 
          overseas.
Sec. 626. Increase in amount of family separation allowance.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents before 
          approval of member's court-martial sentence.
Sec. 632. Dislocation allowance.

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

Sec. 641. One-year opportunity to discontinue participation in Survivor 
          Benefit Plan.
Sec. 642. Time in which change in survivor benefit coverage from former 
          spouse to spouse may be made.
Sec. 643. Review of Federal former spouse protection laws.
Sec. 644. Annuities for certain military surviving spouses.
Sec. 645. Administration of benefits for so-called minimum income 
          widows.

                        Subtitle E--Other Matters

Sec. 651. Loan repayment program for commissioned officers in certain 
          health professions.
Sec. 652. Conformance of NOAA commissioned officers separation pay to 
          separation pay for members of other uniformed services.
Sec. 653. Eligibility of Public Health Service officers and NOAA 
          commissioned corps officers for reimbursement of adoption 
          expenses.
Sec. 654. Payment of back quarters and subsistence allowances to World 
          War II veterans who served as guerrilla fighters in the 
          Philippines.
Sec. 655. Subsistence of members of the Armed Forces above the poverty 
          level.

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1998.

    (a) Waiver of Section 1009 Adjustment.--The adjustment, to 
become effective during fiscal year 1998, required by section 
1009 of title 37, United States Code (as amended by section 
604), in the rate of monthly basic pay authorized members of 
the uniformed services by section 203(a) of such title shall 
not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 1998, 
the rates of basic pay of members of the uniformed services are 
increased by 2.8 percent.

SEC. 602. REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE.

    (a) Entitlement to Allowance.--Section 402 of title 37, 
United States Code, is amended to read as follows:

``Sec. 402. Basic allowance for subsistence

    ``(a) Entitlement to Allowance.--(1) Except as provided in 
paragraph (2) or otherwise provided by law, each member of a 
uniformed service who is entitled to basic pay is entitled to a 
basic allowance for subsistence as set forth in this section.
    ``(2) An enlisted member is not entitled to the basic 
allowance for subsistence during basic training.
    ``(b) Rates of Allowance Based on Food Costs.--(1) The 
monthly rate of basic allowance for subsistence to be in effect 
for an enlisted member for a year (beginning on January 1 of 
that year) shall be the amount that is halfway between the 
following amounts, which are determined by the Secretary of 
Agriculture as of October 1 of the preceding year:
            ``(A) The amount equal to the monthly cost of a 
        moderate-cost food plan for a male in the United States 
        who is between 20 and 50 years of age.
            ``(B) The amount equal to the monthly cost of a 
        liberal food plan for a male in the United States who 
        is between 20 and 50 years of age.
    ``(2) The monthly rate of basic allowance for subsistence 
to be in effect for an officer for a year (beginning on January 
1 of that year) shall be the amount equal to the monthly rate 
of basic allowance for subsistence in effect for officers for 
the preceding year, increased by the same percentage by which 
the rate of basic allowance for subsistence for enlisted 
members for the preceding year is increased effective on such 
January 1.
    ``(c) Advance Payment.--The allowance to an enlisted member 
may be paid in advance for a period of not more than three 
months.
    ``(d) Special Rule for Members Authorized To Mess 
Separately.--(1) In areas prescribed by the Secretary of 
Defense, and the Secretary of Transportation with respect to 
the Coast Guard when it is not operating as a service in the 
Navy, an enlisted member described in paragraph (2) is entitled 
to not more than the pro rata allowance established under 
subsection (b)(1) for each meal the member buys from a source 
other than a messing facility of the United States.
    ``(2) An enlisted member referred to in paragraph (1) is a 
member who is granted permission to mess separately and whose 
duties require the member to buy at least one meal from a 
source other than a messing facility of the United States.
    ``(e) Policies on Use of Dining and Messing Facilities.--
The Secretary of Defense, in consultation with the Secretaries 
concerned, shall prescribe policies regarding use of dining and 
field messing facilities of the uniformed services.
    ``(f) Regulations.--(1) The Secretary of Defense shall 
prescribe regulations for the administration of this section. 
Before prescribing the regulations, the Secretary shall consult 
with each Secretary concerned.
    ``(2) The regulations shall include the specific rates of 
basic allowance for subsistence required by subsection (b).''.
    (b) Conforming Amendments.--(1) Section 404 of title 37, 
United States Code, is amended--
            (A) by striking out subsection (g); and
            (B) by redesignating subsections (h), (i), (j), and 
        (k) as subsections (g), (h), (i), and (j), 
        respectively.
    (2) Section 6081(a) of title 10, United States Code, is 
amended by striking out ``Except'' and all that follows through 
``subsistence, each'' and inserting in lieu thereof ``Each''.
    (c) Transitional Authority To Provide Basic Allowance for 
Subsistence.--
            (1) Transitional authority.--Notwithstanding 
        section 402 of title 37, United States Code, as amended 
        by subsection (a), during the period beginning on 
        January 1, 1998, and ending on the date determined 
        under paragraph (2)--
                    (A) the basic allowance for subsistence 
                shall not be paid under such section 402;
                    (B) a member of the uniformed services is 
                entitled to the basic allowance for subsistence 
                only as provided in subsection (d);
                    (C) an enlisted member of the uniformed 
                services may be paid a partial basic allowance 
                for subsistence as provided in subsection (e); 
                and
                    (D) the rates of the basic allowance for 
                subsistence are those rates determined under 
                subsection (f).
            (2) Termination of transitional authority.--The 
        transitional authority provided under paragraph (1) 
        shall terminate on the first day of the month 
        immediately following the first month for which the 
        monthly equivalent of the rate of basic allowance for 
        subsistence payable to enlisted members of the 
        uniformed services (when permission to mess separately 
        is granted), as determined under subsection (f)(2), is 
        equal to or is exceeded by the amountthat, except for 
paragraph (1)(A), would otherwise be the monthly rate of basic 
allowance for subsistence for enlisted members under section 402(b)(1) 
of title 37, United States Code, as amended by subsection (a).
    (d) Transitional Entitlement to Allowance.--
            (1) Enlisted members.--
                    (A) Types of entitlement.--An enlisted 
                member is entitled to the basic allowance for 
                subsistence, on a daily basis, of under one or 
                more of the following circumstances:
                            (i) When rations in kind are not 
                        available
                            (ii) When permission to mess 
                        separately is granted.
                            (iii) When assigned to duty under 
                        emergency conditions where no messing 
                        facilities of the United States are 
                        available.
                    (B) Other entitlement circumstances.--An 
                enlisted member is entitled to the allowance 
                while on an authorized leave of absence, while 
                confined in a hospital, or while performing 
                travel under orders away from the member's 
                designated post of duty other than field duty 
                or sea duty (as defined in regulations 
                prescribed by the Secretary of Defense). For 
                purposes of the preceding sentence, a member 
                shall not be considered to be performing travel 
                under orders away from his designated post of 
                duty if such member--
                            (i) is an enlisted member serving 
                        the member's first tour of active duty;
                            (ii) has not actually reported to a 
                        permanent duty station pursuant to 
                        orders directing such assignment; and
                            (iii) is not actually traveling 
                        between stations pursuant to orders 
                        directing a change of station.
                    (C) Advance payment.--The allowance to an 
                enlisted member, when authorized, may be paid 
                in advance for a period of not more than three 
                months.
            (2) Officers.--An officer of a uniformed service 
        who is entitled to basic pay is, at all times, entitled 
        to the basic allowances for subsistence. An aviation 
        cadet of the Navy, Air Force, Marine Corps, or Coast 
        Guard is entitled to the same basic allowance for 
        subsistence as is provided for an officer of the Navy, 
        Air Force, Marine Corps, or Coast Guard, respectively.
    (e) Transitional Authority for Partial Allowance.--
            (1) Enlisted members furnished subsistence in 
        kind.--The Secretary of Defense may provide in 
        regulations for an enlisted member of a uniformed 
        service to be paid a partial basic allowance for 
        subsistence when--
                    (A) rations in kind are available to the 
                member;
                    (B) the member is not granted permission to 
                mess separately; or
                    (C) the member is assigned to duty under 
                emergency conditions where messing facilities 
                of the United States are available.
            (2) Monthly payment.--Any partial basic allowance 
        for subsistence authorized under paragraph (1) shall be 
        calculated on a daily basis and paid on a monthly 
        basis.
    (f) Transitional Rates.--
            (1) Allowance for officers.--The monthly rate of 
        basic allowance for subsistence for a year (beginning 
        on January 1 of that year) that is payable to officers 
        of the uniformed services shall be the amount that is 
        equal to 101 percent of the rate of basic allowance for 
        subsistence that was payable to officers of the 
        uniformed services for the preceding year.
            (2) Allowance for enlisted member with permission 
        to mess separately.--The monthly rate of basic 
        allowance for subsistence for a year (beginning on 
        January 1 of that year) that is payable to an enlisted 
        member of the uniformed services entitled to the 
        allowance under subsection (d)(1) shall be the amount 
        that is equal to 101 percent of the rate of basic 
        allowance for subsistence that wasin effect for 
similarly situated enlisted members of the uniformed services for the 
preceding year.
            (3) Partial allowance for other enlisted members.--
        The monthly rate of any partial basic allowance for 
        subsistence for a year (beginning on January 1 of that 
        year) payable to an enlisted member of the uniformed 
        services eligible for the allowance under the 
        regulations prescribed under subsection (e)(1) shall be 
        the amount equal to the lesser of the following:
                    (A) The sum of--
                            (i) the partial basic allowance for 
                        subsistence in effect for the preceding 
                        year; and
                            (ii) the amount equal to the 
                        difference, if any, between--
                                    (I) the monthly equivalent 
                                of the rate of basic allowance 
                                for subsistence that was in 
                                effect for the preceding year 
                                for members of the uniformed 
                                services above grade E-1 (when 
                                permission to mess separately 
                                is granted), increased by the 
                                same percentage by which the 
                                rates of basic pay for members 
                                of the uniformed services is 
                                increased for the current year; 
                                and
                                    (II) the amount equal to 
                                101 percent of the monthly 
                                equivalent of the rate of basic 
                                allowance for subsistence that 
                                was in effect for the previous 
                                year for members of the 
                                uniformed services above grade 
                                E-1 (when permission to mess 
                                separately is granted),

                        with the amount so determined under 
                        this clause multiplied by the number of 
                        members estimated to be entitled to 
                        receive basic allowance for subsistence 
                        under subsection (d) for the current 
                        year and then divided by the number of 
                        members estimated to be eligible for 
                        the partial allowance under the 
                        regulations prescribed under subsection 
                        (e)(1) for that year.
                    (B) The amount equal to the difference 
                between--
                            (i) the amount that, except for 
                        subsection (c)(1)(A), would otherwise 
                        be the monthly rate of basic allowance 
                        for subsistence for enlisted members 
                        under section 402(b)(1) of title 37, 
                        United States Code; and
                            (ii) the amount equal to the 
                        monthly equivalent of the value of a 
                        daily ration, as determined by the 
                        Under Secretary of Defense 
                        (Comptroller) as of October 1 of the 
                        preceding year.
    (g) Effective Date.--This section and the amendments made 
by this section shall take effect on January 1, 1998.

SEC. 603. CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS, VARIABLE 
                    HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES.

    (a) Consolidation of Allowances.--Section 403 of title 37, 
United States Code, is amended to read as follows:

``Sec. 403. Basic allowance for housing

    ``(a) General Entitlement.--(1) Except as otherwise 
provided by law, a member of a uniformed service who is 
entitled to basic pay is entitled to a basic allowance for 
housing at the monthly rates prescribed under this section or 
another provision of law with regard to the applicable 
component of the basic allowance for housing. The amount of the 
basic allowance for housing for a member will vary according to 
the pay grade in which the member is assigned or distributed 
for basic pay purposes, the dependency status of the member, 
and the geographic location of the member. The basic allowance 
for housing may be paid in advance.
    ``(2) A member of a uniformed service with dependents is 
not entitled to a basic allowance for housing as a member with 
dependents unless the member makes a certification to the 
Secretary concerned indicating the status of each dependent of 
the member. The certification shall be made in accordance with 
regulations prescribed by the Secretary of Defense.
    ``(b) Basic Allowance for Housing Inside the United 
States.--(1) The Secretary of Defense shall determine the costs 
of adequate housing in a military housing area in the United 
States for all members of the uniformed services entitled to a 
basic allowance for housing in that area. The Secretary shall 
base the determination upon the costs of adequate housing for 
civilians with comparable income levels in the same area.
    ``(2) Subject to paragraph (3), the monthly amount of a 
basic allowance for housing for an area of the United States 
for a member of a uniformed service is equal to the difference 
between--
            ``(A) the monthly cost of adequate housing in that 
        area, as determined by the Secretary of Defense, for 
        members of the uniformed services serving in the same 
        pay grade and with the same dependency status as the 
        member; and
            ``(B) 15 percent of the national average monthly 
        cost of adequate housing in the United States, as 
        determined by the Secretary, for members of the 
        uniformed services serving in the same pay grade and 
        with the same dependency status as the member.
    ``(3) The rates of basic allowance for housing shall be 
reduced as necessary to comply with this paragraph. The total 
amount that may be paid for a fiscal year for the basic 
allowance for housing under this subsection is the product of--
            ``(A) the total amount authorized to be paid for 
        such allowance for the preceding fiscal year (as 
        adjusted under paragraph (5)); and
            ``(B) a fraction--
                    ``(i) the numerator of which is the index 
                of the national average monthly cost of housing 
                for June of the preceding fiscal year; and
                    ``(ii) the denominator of which is the 
                index of the national average monthly cost of 
                housing for June of the fiscal year before the 
                preceding fiscal year.
    ``(4) An adjustment in the rates of the basic allowance for 
housing under this subsection as a result of the Secretary's 
redetermination of housing costs in an area shall take effect 
on the same date as the effective date of the next increase in 
basic pay under section 1009 of this title or other provision 
of law.
    ``(5) In making a determination under paragraph (3) for a 
fiscal year, the amount authorized to be paid for the preceding 
fiscal year for the basic allowance for housing shall be 
adjusted to reflect changes during the year for which the 
determination is made in the number, grade distribution, 
geographic distribution in the United States, and dependency 
status of members of the uniformed services entitled to the 
allowance from the number of such members during the preceding 
fiscal year.
    ``(6) So long as a member of a uniformed service retains 
uninterrupted eligibility to receive a basic allowance for 
housing within an area of the United States, the monthly amount 
of the allowance for the member may not be reduced as a result 
of changes in housing costs in the area, changes in the 
national average monthly cost of housing, or the promotion of 
the member.
    ``(7) In the case of a member without dependents who is 
assigned to duty inside the United States, the location or the 
circumstances of which make it necessary that the member be 
reassigned under the conditions of low cost or no cost 
permanent change of station or permanent change of assignment, 
the member may be treated as if the member were not reassigned 
if the Secretary concerned determines that it would be 
inequitable to base the member's entitlement to, and amount of, 
a basic allowance for housing on the cost of housing in the 
area to which the member is reassigned.
    ``(c) Basic Allowance for Housing Outside the United 
States.--(1) The Secretary of Defense may prescribe an overseas 
basic allowance for housing for a member of a uniformed service 
who is on duty outside of the United States. The Secretary 
shall establish the basic allowance for housingunder this 
subsection on the basis of housing costs in the overseas area in which 
the member is assigned.
    ``(2) So long as a member of a uniformed service retains 
uninterrupted eligibility to receive a basic allowance for 
housing in an overseas area and the actual monthly cost of 
housing for the member is not reduced, the monthly amount of 
the allowance in an area outside the United States may not be 
reduced as a result of changes in housing costs in the area or 
the promotion of the member. The monthly amount of the 
allowance may be adjusted to reflect changes in currency rates.
    ``(d) Basic Allowance for Housing When Dependents Are 
Unable To Accompany Member.--(1) A member of a uniformed 
service with dependents who is on permanent duty at a location 
described in paragraph (2) is entitled to a family separation 
basic allowance for housing under this subsection at a monthly 
rate equal to the rate of the basic allowance for housing 
established under subsection (b) or the overseas basic 
allowance for housing established under subsection (c), 
whichever applies to that location, for members in the same 
grade at that location without dependents.
    ``(2) A permanent duty location referred to in paragraph 
(1) is a location--
            ``(A) to which the movement of the member's 
        dependents is not authorized at the expense of the 
        United States under section 406 of this title, and the 
        member's dependents do not reside at or near the 
        location; and
            ``(B) at which quarters of the United States are 
        not available for assignment to the member.
    ``(3) In the case of a member with dependents who is 
assigned to duty at a location or under circumstances that, as 
determined by the Secretary concerned, require the member's 
dependents to reside at a different location, the member shall 
receive a basic allowance for housing, as provided in 
subsection (a) or (b), as if the member were assigned to duty 
in the area in which the dependents reside, regardless of 
whether the member resides in quarters of the United States or 
is also entitled to a family separation basic allowance for 
housing by reason of paragraph (1).
    ``(4) The family separation basic allowance for housing 
under this subsection shall be in addition to any other 
allowance or per diem that the member is otherwise entitled to 
receive under this title. A member may receive a basic 
allowance for housing under both paragraphs (1) and (3).
    ``(e) Effect of Assignment to Quarters.--(1) Except as 
otherwise provided by law, a member of a uniformed service who 
is assigned to quarters of the United States or a housing 
facility under the jurisdiction of a uniformed service 
appropriate to the grade, rank, or rating of the member and 
adequate for the member and dependents of the member, if with 
dependents, is not entitled to a basic allowance for housing.
    ``(2) A member without dependents who is in a pay grade 
above pay grade E-6 and who is assigned to quarters in the 
United States or a housing facility under the jurisdiction of a 
uniformed service, appropriate to the grade or rank of the 
member and adequate for the member, may elect not to occupy 
those quarters and instead to receive the basic allowance for 
housing prescribed for the member's pay grade by this section.
    ``(3) A member without dependents who is in pay grade E-6 
and who is assigned to quarters of the United States that do 
not meet the minimum adequacy standards established by the 
Secretary of Defense for members in such pay grade, or to a 
housing facility under the jurisdiction of a uniformed service 
that does not meet such standards, may elect not to occupy such 
quarters or facility and instead to receive the basic allowance 
for housing prescribed for the member's pay grade under this 
section.
    ``(4) The Secretary concerned may deny the right to make an 
election under paragraph (2) or (3) if the Secretary determines 
that the exercise of such an election would adversely affect a 
training mission, military discipline, or military readiness.
    ``(5) A member with dependents who is assigned to quarters 
of the United States or a housing facility under the 
jurisdiction of a uniformed service may be paid the basic 
allowance for housing if, because of orders of competent 
authority, the dependents are prevented from occupying those 
quarters.
    ``(f) Ineligibility During Initial Field Duty or Sea 
Duty.--(1) A member of a uniformed service without dependents 
who makes a permanent change of station for assignment to a 
unit conducting field operations is not entitled to a basic 
allowance for housing while on that initial field duty unless 
the commanding officer of the member certifies that the member 
was necessarily required to procure quarters at the member's 
expense.
    ``(2)(A) Except as provided in subparagraphs (B) and (C), a 
member of a uniformed service without dependents who is in a 
pay grade below pay grade E-6 is not entitled to a basic 
allowance for housing while the member is on sea duty.
    ``(B) Under regulations prescribed by the Secretary 
concerned, the Secretary may authorize the payment of a basic 
allowance for housing to a member of a uniformed service 
without dependents who is serving in pay grade E-5 and is 
assigned to sea duty. In prescribing regulations under this 
subparagraph, the Secretary concerned shall consider the 
availability of quarters for members serving in pay grade E-5.
    ``(C) Notwithstanding section 421 of this title, two 
members of the uniformed services in a pay grade below pay 
grade E-6 who are married to each other, have no other 
dependents, and are simultaneously assigned to sea duty are 
jointly entitled to one basic allowance for housing during the 
period of such simultaneous sea duty. The amount of the 
allowance shall be based on the without dependents rate for the 
pay grade of the senior member of the couple. However, this 
subparagraph shall not apply to a couple if one or both of the 
members are entitled to a basic allowance for housing under 
subparagraph (B).
    ``(3) The Secretary of Defense, and the Secretary of 
Transportation with respect to the Coast Guard when it is not 
operating as a service in the Department of the Navy, shall 
prescribe regulation defining the terms `field duty' and `sea 
duty' for purposes of this section.
    ``(g) Reserve Members.--(1) A member of a reserve component 
without dependents who is called or ordered to active duty in 
support of a contingency operation, or a retired member without 
dependents who is ordered to active duty under section 688(a) 
of title 10 in support of a contingency operation, may not be 
denied a basic allowance for housing if, because of that call 
or order, the member is unable to continue to occupy a 
residence--
            ``(A) which is maintained as the primary residence 
        of the member at the time of the call or order; and
            ``(B) which is owned by the member or for which the 
        member is responsible for rental payments.
    ``(2) Paragraph (1) shall not apply if the member is 
authorized transportation of household goods under section 406 
of this title as part of the call or order to active duty 
described in such paragraph.
    ``(3) The Secretary of Defense shall establish a rate of 
basic allowance for housing to be paid to a member of a reserve 
component while the member serves on active duty under a call 
or order to active duty specifying a period of less than 140 
days, unless the call or order to active duty is in support of 
a contingency operation.
    ``(h) Rental of Public Quarters.--Notwithstanding any other 
law (including those restricting the occupancy of housing 
facilities under the jurisdiction of a department or agency of 
the United States by members, and their dependents, of the 
armed forces above specified grades, or by members, and their 
dependents, of the National Oceanic and Atmospheric 
Administration and the Public Health Service), a member of a 
uniformed service, and the dependents of the member, may be 
accepted as tenants in, and may occupy on a rental basis, any 
of those housing facilities, other than public quarters 
constructed or designated for assignment to an occupancy 
without charge by such a member and the dependents of the 
member, if any. Such a member may not, because of occupancy 
under this subsection, be deprived of any money allowance to 
which the member is otherwise entitled for the rental of 
quarters.
    ``(i) Temporary Housing Allowance While in Travel or Leave 
Status.--A member of a uniformed service who is in a pay grade 
E-4 (4 or more years of service) or above is entitled to a 
temporary basic allowance for housing (at a rate determined by 
the Secretary of Defense) while the member is in a travel or 
leave status between permanent duty stations, including time 
granted as delay en route or proceed time, when the member is 
not assigned to quarters of the United States.
    ``(j) Aviation Cadets.--The eligibility of an aviation 
cadet of the Navy, Air Force, Marine Corps, or Coast Guard for 
a basic allowance for housing shall be determined as if the 
aviation cadet were a member of the uniformed services in pay 
grade E-4.
    ``(k) Administration.--(1) The Secretary of Defense shall 
prescribe regulations for the administration of this section.
    ``(2) The Secretary concerned may make such determinations 
as may be necessary to administer this section, including 
determinations of dependency and relationship. When warranted 
by the circumstances, the Secretary concerned may reconsider 
and change or modify any such determination. The authority of 
the Secretary concerned under this subsection may be delegated. 
Any determination made under this section with regard to a 
member of the uniformed services is final and is not subject to 
review by any accounting officer of the United States or a 
court, unless there is fraud or gross negligence.
    ``(3) Parking facilities (including utility connections) 
provided members of the uniformed services for house trailers 
and mobile homes not owned by the Government shall not be 
considered to be quarters for the purposes of this section or 
any other provision of law. Any fees established by the 
Government for the use of such a facility shall be established 
in an amount sufficient to cover the cost of maintenance, 
services, and utilities and to amortize the cost of 
construction of the facility over the 25-year period beginning 
with the completion of such construction.
    ``(l) Temporary Continuation of Allowance for Dependents of 
Members Dying on Active Duty.--(1) The Secretary of Defense, or 
the Secretary of Transportation in the case of the Coast Guard 
when not operating as a service in the Navy, may allow the 
dependents of a member of the armed forces who dies on active 
duty and whose dependents are occupying family housing provided 
by the Department of Defense, or by the Department of 
Transportation in the case of the Coast Guard, other than on a 
rental basis on the date of the member's death to continue to 
occupy such housing without charge for a period of 180 days.
    ``(2) The Secretary concerned may pay a basic allowance for 
housing (at the rate that is payable for members of the same 
grade and dependency status as the deceased member for the area 
where the dependents are residing) to the dependents of a 
member of the uniformed services who dies while on active duty 
and whose dependents--
            ``(A) are not occupying a housing facility under 
        the jurisdiction of a uniformed service on the date of 
        the member's death;
            ``(B) are occupying such housing on a rental basis 
        on such date; or
            ``(C) vacate such housing sooner than 180 days 
        after the date of the member's death.
    ``(3) The payment of the allowance under paragraph (2) 
shall terminate 180 days after the date of the member's death.
    ``(m) Members Paying Child Support.--(1) A member of a 
uniformed service with dependents may not be paid a basic 
allowance for housing at the with dependents rate solely by 
reason of the payment of child support by the member if--
            ``(A) the member is assigned to a housing facility 
        under the jurisdiction of a uniformed service; or
            ``(B) the member is assigned to sea duty, and 
        elects not to occupy assigned quarters for 
        unaccompanied personnel, unless the member is in a pay 
        grade above E-4.
    ``(2) A member of a uniformed service assigned to quarters 
of the United States or a housing facility under the 
jurisdiction of a uniformed service who is not otherwise 
authorized a basic allowance for housing and who pays child 
support is entitled to the basic allowance for housing 
differential, except for months for which the amount payable 
for the child support is less than the rate of the 
differential. Payment of a basic allowance for housing 
differential does not affect any entitlement of the member to a 
partial allowance for quarters under subsection (n).
    ``(3) The basic allowance for housing differential to which 
a member is entitled under paragraph (2) is the amount equal to 
the difference between--
            ``(A) the rate of the basic allowance for quarters 
        (with dependents) for the member's pay grade, as such 
        rate was in effect on December 31, 1997, under this 
        section (as in effect on that date); and
            ``(B) the rate of the basic allowance for quarters 
        (without dependents) for the member's pay grade, as 
        such rate was in effect on December 31, 1997, under 
        this section (as in effect on that date).
    ``(4) Whenever the rates of basic pay for members of the 
uniformed services are increased, the monthly amount of the 
basic allowance for housing differential computed under 
paragraph (3) shall be increased by the average percentage 
increase in the rates of basic pay. The effective date of the 
increase shall be the same date as the effective date of the 
increase in the rates of basic pay.
    ``(5) In the case of two members, who have one or more 
common dependents (and no others), who are not married to each 
other, and one of whom pays child support to the other, the 
amount of the basic allowance for housing paid to each member 
under this section shall be reduced in accordance with 
regulations prescribed by the Secretary of Defense. The total 
amount of the basic allowances for housing paid to the two 
members may not exceed the sum of the amounts of the allowance 
to which each member would be otherwise entitled under this 
section.
    ``(n) Partial Allowance for Members Without Dependents.--
(1) A member of a uniformed service without dependents who is 
not entitled to receive a basic allowance for housing under 
subsection (b), (c), or (d) is entitled to a partial basic 
allowance for housing at a rate determined by the Secretary of 
Defense under paragraph (2).
    ``(2) The rate of the partial basic allowance for housing 
is the partial rate of the basic allowance for quarters for the 
member's pay grade as such partial rate was in effect on 
December 31, 1997, under section 1009(c)(2) of this title (as 
such section was in effect on such date).''.
    (b) Transition to Basic Allowance for Housing.--The 
Secretary of Defense shall develop and implement a plan to 
incrementally manage the rate of growth of the various 
components of the basic allowance for housing authorized by 
section 403 of title 37, United States Code (as amended by 
subsection (a)), during a transition period of not more than 
six years. During the transition period, the Secretary may 
continue to use the authorities provided under sections 403, 
403a, 405(b), and 427(a) of title 37, United States Code (as in 
effect on the day before the date of the enactment of this 
Act), but subject to such modifications as the Secretary 
considers necessary, to provide allowances for members of the 
uniformed services.
    (c) Repeal of Superseded Authorities.--(1) Section 403a of 
title 37, United States Code, is repealed.
    (2) Section 405 of such title is amended--
            (A) by striking out subsection (b); and
            (B) by redesignating subsections (c) and (d) as 
        subsections (b) and (c), respectively.
    (3) Section 427 of such title is amended--
            (A) by striking out subsection (a); and
            (B) in subsection (b)--
                    (i) by striking out ``(b) Additional 
                Separation Allowance.--'' and inserting in lieu 
                thereof ``(a) Entitlement to Allowance.--'';
                    (ii) in paragraph (1)--
                            (I) by striking out ``, including 
                        subsection (a),'' in the matter 
                        preceding the subparagraphs;
                            (II) by inserting ``or'' at the end 
                        of subparagraph (B);
                            (III) by striking out ``; or'' at 
                        the end of subparagraph (C) and 
                        inserting in lieu thereof a period; and
                            (IV) by striking out subparagraph 
                        (D);
                    (iii) in paragraph (3)--
                            (I) by striking out ``(3) An 
                        allowance'' and inserting in lieu 
                        thereof ``(b) Entitlement When No 
                        Residence or Household Maintained for 
                        Dependents.--An allowance''; and
                            (II) by striking out ``this 
                        subsection'' and inserting in lieu 
                        thereof ``subsection (a)'';
                    (iv) in paragraph (4)--
                            (I) by striking out ``(4) A 
                        member'' and inserting in lieu thereof 
                        ``(c) Effect of Election To Serve 
                        Unaccompanied Tour of Duty.--A 
                        member''; and
                            (II) by striking out ``paragraph 
                        (1)(A) of this subsection'' and 
                        inserting in lieu thereof ``subsection 
                        (a)(1)(A)''; and
                    (v) by striking out paragraph (5) and 
                inserting in lieu thereof the following new 
                subsection:
    ``(d) Entitlement While Spouse Entitled to Basic Pay.--A 
member married to another member of the uniformed services 
becomes entitled, regardless of any other dependency status, to 
an allowance under subsection (a) by virtue of duty prescribed 
in subparagraph (A), (B), or (C) of paragraph (1) of such 
subsection if the members were residing together immediately 
before being separated by reasons of execution of military 
orders. Section 421 of this title does not apply to bar the 
entitlement to an allowance under this section. However, not 
more than one monthly allowance may be paid with respect to a 
married couple under this section.''.
    (4) The table of sections at the beginning of chapter 7 of 
title 37, United States Code, is amended by striking out the 
items relating to sections 403 and 403a and inserting in lieu 
thereof the following new item:

``403. Basic allowance for housing.''.

    (d) Conforming Amendments.--(1) Title 37, United States 
Code, is amended--
            (A) in section 101(25), by striking out ``basic 
        allowance for quarters (including any variable housing 
        allowance or station housing allowance)'' and inserting 
        in lieu thereof ``basic allowance for housing'';
            (B) in section 406(c), by striking out ``sections 
        404 and 405'' and inserting in lieu thereof ``sections 
        403(c), 404, and 405'';
            (C) in section 420(c), by striking out ``quarters'' 
        and inserting in lieu thereof ``housing'';
            (D) in section 551(3)(D), by striking out ``basic 
        allowance for quarters'' and inserting in lieu thereof 
        ``basic allowance for housing''; and
            (E) in section 1014(a), by striking out ``basic 
        allowance for quarters'' and inserting in lieu thereof 
        ``basic allowance for housing''.
    (2) Title 10, United States Code, is amended--
            (A) in section 708(c)(1), by striking out ``basic 
        allowance for quarters or basic allowance for 
        subsistence'' and inserting in lieu thereof ``basic 
        allowance for housing under section 403 of title 37, 
        basic allowance for subsistence under section 402 of 
        such title,'';
            (B) in section 2830(a)--
                    (i) in paragraph (1), by striking out 
                ``basic allowance for quarters'' and inserting 
                in lieu thereof ``basic allowance for housing 
                under section 403 of title 37''; and
                    (ii) in paragraph (2), by striking out 
                ``basic allowance for quarters'' and inserting 
                in lieu thereof ``basic allowance for 
                housing'';
            (C) in section 2882(b)--
                    (i) in paragraph (1), by striking out 
                ``section 403(b)'' and inserting in lieu 
                thereof ``section 403''; and
                    (ii) in paragraph (2), by striking out 
                ``basic allowance for quarters'' and all that 
                follows through the end of the paragraph and 
                inserting in lieu thereof ``basic allowance for 
                housing under section 403 of title 37.'';
            (D) in section 7572(b)--
                    (i) in paragraph (1), by striking out ``the 
                total of--'' and all that follows through the 
                end of the paragraph and inserting in lieu 
                thereof ``the basic allowance for housing 
                payable under section 403 of title 37 to a 
                member of the same pay grade without dependents 
                for the period during which the member is 
                deprived of quarters on board ship.''; and
                    (ii) in paragraph (2), by striking out 
                ``basic allowance for quarters'' and inserting 
                in lieu thereof ``basic allowance for 
                housing''; and
            (E) in section 7573, by striking out ``basic 
        allowance for quarters'' and inserting in lieu thereof 
        ``basic allowance for housing under section 403 of 
        title 37''.
    (3) Section 5561(6)(D) of title 5, United States Code, is 
amended by striking out ``basic allowance for quarters'' and 
inserting in lieu thereof ``basic allowance for housing''.
    (4) Section 107(b) of title 32, United States Code, is 
amended by striking out ``and quarters'' and inserting in lieu 
thereof ``and housing''.
    (5) Section 4(k)(10) of the Military Selective Service Act 
(50 U.S.C. App. 454(k)(10)) is amended by striking out ``as 
such terms'' and all that follows through ``extended or 
amended'' and inserting in lieu thereof ``shall be entitled to 
receive a dependency allowance equal to the basic allowance for 
housing provided for persons in pay grade E-1 under section 403 
of title 37, United States Code,''.
    (e) Effective Date.--This section and the amendments made 
by this section shall take effect on January 1, 1998.

SEC. 604. REVISION OF AUTHORITY TO ADJUST COMPENSATION NECESSITATED BY 
                    REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES.

    (a) Removal of References to BAS and BAQ.--(1) Section 1009 
of title 37, United States Code, is amended to read as follows:

``Sec. 1009. Adjustments of monthly basic pay

    ``(a) Adjustment Required.--Whenever the General Schedule 
of compensation for Federal classified employees, as contained 
in section 5332 of title 5, is adjusted upward as provided in 
section 5303 of such title, the President shall immediately 
make an upward adjustment in the monthly basic pay authorized 
members of the uniformed services by section 203(a) of this 
title.
    ``(b) Effectiveness of Adjustment.--An adjustment under 
this section shall--
            ``(1) have the force and effect of law; and
            ``(2) carry the same effective date as that 
        applying to the compensation adjustments provided 
        General Schedule employees.
    ``(c) Equal Percentage Increase for All Members.--Subject 
to subsection (d), an adjustment under this section shall 
provide all eligible members with an increase in the monthly 
basic pay which is of the same percentage as the overall 
average percentage increase in the General Schedule rates of 
both basic pay and locality pay for civilian employees.
    ``(d) Allocation of Increase Among Pay Grades and Years-of-
Service.--(1) Subject to paragraph (2), whenever the President 
determines such action to be in the best interest of the 
Government, he may allocate the overall percentage increase in 
the monthly basic pay under subsection (a) among such pay grade 
and years-of-service categories as he considers appropriate.
    ``(2) In making any allocation of an overall percentage 
increase in basic pay under paragraph (1)--
            ``(A) the amount of the increase in basic pay for 
        any given pay grade and years-of-service category after 
        any allocation made under this subsection may not be 
        less than 75 percent of the amount of the increase in 
        the monthly basic pay that would otherwise have been 
        effective with respect to such pay grade and years-of-
        service category under subsection (c); and
            ``(B) the percentage increase in the monthly basic 
        pay in the case of any member of the uniformed services 
        with four years or less service may not exceed the 
        overall percentage increase in the General Schedule 
        rates of basic pay for civilian employees.
    ``(e) Notice of Allocations.--Whenever the President plans 
to exercise the authority of the President under subsection (d) 
with respect to any anticipated increase in the monthly basic 
pay of members of the uniformed services, the President shall 
advise Congress, at the earliest practicable time prior to the 
effective date of such increase, regarding the proposed 
allocation of such increase.
    ``(f) Quadrennial Assessment of Allocations.--The 
allocations of increases made under this section shall be 
assessed in conjunction with the quadrennial review of military 
compensation required by section 1008(b) of this title.''.
    (2) The item relating to such section in the table of 
sections at the beginning of chapter 19 of such title is 
amended to read as follows:

``1009. Adjustments of monthly basic pay.''.

    (b) Effective Date.--The amendments made by subsection (a) 
shall take effect on January 1, 1998.

SEC. 605. PROTECTION OF TOTAL COMPENSATION OF MEMBERS WHILE PERFORMING 
                    CERTAIN DUTY.

    Section 1009 of title 37, United States Code, as amended by 
section 604, is further amended--
            (1) by redesignating subsection (f) as subsection 
        (g); and
            (2) by inserting after subsection (e) the following 
        new subsection:
    ``(f) Protection of Member's Total Compensation While 
Performing Certain Duty.--(1) The total daily equivalent amount 
of the elements of compensation described in paragraph (3), 
together with other pay and allowances under this title, to be 
paid to a member of the uniformed services who is temporarily 
assigned to duty away from the member's permanent duty station 
or to duty under field conditions at the member's permanent 
duty station shall not be less, for any day during the 
assignment period, than the total amount, for the day 
immediately preceding the date of the assignment, of the 
elements of compensation and other pay and allowances of the 
member.
    ``(2) Paragraph (1) shall not apply with respect to an 
element of compensation or other pay or allowance of a member 
during an assignment described in such paragraph to the extent 
that the element of compensation or other pay or allowance is 
reduced or terminated due to circumstances unrelated to the 
assignment.
    ``(3) The elements of compensation referred to in this 
subsection mean--
            ``(A) the monthly basic pay authorized members of 
        the uniformed services by section 203(a) of this title;
            ``(B) the basic allowance for subsistence 
        authorized members of the uniformed services by section 
        402 of this title; and
            ``(C) the basic allowance for housing authorized 
        members of the uniformed services by section 403 of 
        this title.''

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
                    AUTHORITIES FOR RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically 
Short Wartime Specialties.--Section 302g(f) of title 37, United 
States Code, is amended by striking out ``September 30, 1998'' 
and inserting in lieu thereof ``September 30, 1999''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) 
of title 37, United States Code, is amended by striking out 
``September 30, 1998'' and inserting in lieu thereof 
``September 30, 1999''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
title 37, United States Code, is amended by striking out 
``September 30, 1998'' and inserting in lieu thereof 
``September 30, 1999''.
    (d) Special Pay for Enlisted Members Assigned to Certain 
High Priority Units.--Section 308d(c) of title 37, United 
States Code, is amended by striking out ``September 30, 1998'' 
and inserting in lieu thereof ``September 30, 1999''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
title 37, United States Code, is amended by striking out 
``September 30, 1998'' and inserting in lieu thereof 
``September 30, 1999''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--
Section 308h(g) of title 37, United States Code, is amended by 
striking out ``September 30, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f) of 
title 37, United States Code, as redesignated by section 622, 
is amended by striking out ``September 30, 1998'' and inserting 
in lieu thereof ``September 30, 1999''.
    (h) Repayment of Education Loans for Certain Health 
Professionals Who Serve in the Selected Reserve.--Section 
16302(d) of title 10, United States Code, is amended by 
striking out ``October 1, 1998'' and inserting in lieu thereof 
``October 1, 1999''.

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

    (a) Nurse Officer Candidate Accession Program.--Section 
2130a(a)(1) of title 10, United States Code, is amended by 
striking out ``September 30, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (b) Accession Bonus for Registered Nurses.--Section 
302d(a)(1) of title 37, United States Code, is amended by 
striking out ``September 30, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by 
striking out ``September 30, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.

SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
                    OTHER BONUSES AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
title 37, United States Code, is amended by striking out 
``September 30, 1998,'' and inserting in lieu thereof 
``September 30, 1999,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) 
of title 37, United States Code, is amended by striking out 
``September 30, 1998'' and inserting in lieu thereof 
``September 30, 1999''.
    (c) Enlistment Bonuses for Members With Critical Skills.--
Sections 308a(c) and 308f(c) of title 37, United States Code, 
are each amended by striking out ``September 30, 1998'' and 
inserting in lieu thereof ``September 30, 1999''.
    (d) Special Pay for Nuclear Qualified Officers Extending 
Period of Active Service.--Section 312(e) of title 37, United 
States Code, is amended by striking out ``September 30, 1998'' 
and inserting in lieu thereof ``September 30, 1999''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of 
title 37, United States Code, is amended by striking out 
``September 30, 1998'' and inserting in lieu thereof 
``September 30, 1999''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
of title 37, United States Code, is amended by striking out 
``October 1, 1998'' and inserting in lieu thereof ``October 1, 
1999''.

SEC. 614. INCREASE IN MINIMUM MONTHLY RATE OF HAZARDOUS DUTY INCENTIVE 
                    PAY FOR CERTAIN MEMBERS.

    (a) Aerial Flight Crewmembers.--The table in subsection (b) 
of section 301 of title 37, United States Code, is amended--
            (1) by striking out ``110'' each place it appears 
        and inserting in lieu thereof ``150''; and
            (2) by striking out ``125'' each place it appears 
        and inserting in lieu thereof ``150''.
    (b) Air Weapons Controller Aircrew.--The table in 
subsection (c)(2)(A) of such section is amended--
            (1) by striking out ``100'' in the first column of 
        amounts and inserting in lieu thereof ``150'';
            (2) by striking out ``110'' in the last column of 
        amounts and inserting in lieu thereof ``150''; and
            (3) by striking out ``125'' each place it appears 
        and inserting in lieu thereof ``150''.
    (c) Other Members.--Subsection (c)(1) of such section is 
amended--
            (1) by striking out ``$110'' and inserting in lieu 
        thereof ``$150''; and
            (2) by striking out ``$165'' and inserting in lieu 
        thereof ``$225''.

SEC. 615. INCREASE IN AVIATION CAREER INCENTIVE PAY.

    (a) Amounts.--The table in subsection (b)(1) of section 
301a of title 37, United States Code, is amended--
            (1) by inserting at the end of phase I of the table 
        the following:

    ``Over 14.....................................................840'';

        and
            (2) by striking out phase II of the table and 
        inserting in lieu thereof the following:

                               ``Phase II

                                                               ``Monthly
``Years of service as an officer:                                   rate
    ``Over 22..................................................... $585 
    ``Over 23.....................................................  495 
    ``Over 24.....................................................  385 
    ``Over 25.....................................................250''.

    (b) Conforming Amendments.--Such subsection is further 
amended in the matter after the table by striking out ``18 
years'' both places it appears and inserting in lieu thereof 
``22 years''.
    (c) Effective Date and Applicability.--The amendments made 
by subsection (a) shall take effect on January 1, 1999, and 
shall apply with respect to months beginning on or after that 
date.

SEC. 616. MODIFICATION OF AVIATION OFFICER RETENTION BONUS.

    (a) Increase in Bonus Amounts.--Subsection (c) of section 
301b of title 37, United States Code, is amended--
            (1) in paragraph (1), by striking out ``$12,000'' 
        and inserting in lieu thereof ``$25,000''; and
            (2) in paragraph (2), by striking out ``$6,000'' 
        and inserting in lieu thereof ``$12,000''.
    (b) Duration of Agreement.--Paragraph (2) of such 
subsection is further amended by striking out ``one or two 
years'' and inserting in lieu thereof ``one, two, or three 
years''.
    (c) Content of Annual Report.--Subsection (i)(1) of such 
section is amended--
            (1) by inserting ``and'' at the end of subparagraph 
        (A);
            (2) by striking out ``; and'' at the end of 
        subparagraph (B) and inserting in lieu thereof a 
        period; and
            (3) by striking out subparagraph (C).
    (d) Definition of Aviation Specialty.--Subsection (j)(2) of 
such section is amended by inserting ``specific'' before 
``community'' both places it appears.
    (e) Effective Dates and Applicability.--The amendments made 
by this section shall take effect as of October 1, 1996, and 
shall apply with respect to agreements accepted under section 
301b of title 37, United States Code, on or after that date.

SEC. 617. AVAILABILITY OF MULTIYEAR RETENTION BONUS FOR DENTAL 
                    OFFICERS.

    (a) Availability of Retention Bonus.--Chapter 5 of title 
37, United States Code, is amended by inserting after section 
301d the following new section:

``Sec. 301e. Multiyear retention bonus: dental officers of the armed 
                    forces

    ``(a) Bonus Authorized.--(1) A dental officer described in 
subsection (b) who executes a written agreement to remain on 
active duty for two, three, or four years after completion of 
any other active-duty service commitment may, upon acceptance 
of the written agreement by the Secretary of the military 
department concerned, be paid a retention bonus as provided in 
this section.
    ``(2) The amount of a retention bonus under paragraph (1) 
may not exceed $14,000 for each year covered by a four-year 
agreement. The maximum yearly retention bonus for two-year and 
three-year agreements shall be reduced to reflect the shorter 
service commitment.
    ``(b) Officers Automatically Eligible.--Subsection (a) 
applies to an officer of the armed forces who--
            ``(1) is an officer of the Dental Corps of the Army 
        or the Navy or an officer of the Air Force designated 
        as a dental officer;
            ``(2) has a dental specialty in oral and 
        maxillofacial surgery;
            ``(3) is in a pay grade below pay grade 0-7;
            ``(4) has at least eight years of creditable 
        service (computed as described in section 302b(g) of 
        this title) or has completed any active-duty service 
        commitment incurred for dental education and training; 
        and
            ``(5) has completed initial residency training (or 
        will complete such training before September 30 of the 
        fiscal year in which the officer enters into an 
        agreement under subsection (a)).
    ``(c) Extension of Bonus to Other Dental Officers.--At the 
discretion of the Secretary of the military department 
concerned, the Secretary may enter into a written agreement 
described in subsection (a)(1) with a dental officer who does 
not have the dental specialty specified in subsection (b)(2), 
and pay a retention bonus to such an officer as provided in 
this section, if the officer otherwise satisfies the 
eligibility requirements specified in subsection (b). The 
Secretaries shall exercise the authority provided in this 
section in a manner consistent with regulations prescribed by 
the Secretary of Defense.
    ``(d) Refunds.--(1) Refunds shall be required, on a pro 
rata basis, of sums paid under this section if the officer who 
has received the payment fails to complete the total period of 
active duty specified in the agreement, as conditions and 
circumstances warrant.
    ``(2) An obligation to reimburse the United States imposed 
under paragraph (1) is for all purposes a debt owed to the 
United States.
    ``(3) A discharge in bankruptcy under title 11, United 
States Code, that is entered less than five years after the 
termination of an agreement under this section does not 
discharge the member signing such agreement from a debt arising 
under such agreement or under paragraph (1). This paragraph 
applies to any case commenced under title 11 after the date of 
the enactment of the National Defense Authorization Act for 
Fiscal Year 1998.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 301d the following new item:

``301e. Multiyear retention bonus: dental officers of the armed 
          forces.''.

SEC. 618. INCREASE IN VARIABLE AND ADDITIONAL SPECIAL PAYS FOR CERTAIN 
                    DENTAL OFFICERS.

    (a) Variable Special Pay for Junior Officers.--Paragraph 
(2) of section 302b(a) of title 37, United States Code, is 
amended by striking out subparagraphs (C), (D), (E), and (F) 
and inserting in lieu thereof the following new subparagraphs:
            ``(C) $7,000 per year, if the officer has at least 
        six but less than eight years of creditable service.
            ``(D) $12,000 per year, if the officer has at least 
        eight but less than 12 years of creditable service.
            ``(E) $10,000 per year, if the officer has at least 
        12 but less than 14 years of creditable service.
            ``(F) $9,000 per year, if the officer has at least 
        14 but less than 18 years of creditable service.
            ``(G) $8,000 per year, if the officer has 18 or 
        more years of creditable service.''.
    (b) Variable Special Pay for Senior Officers.--Paragraph 
(3) of such section is amended by striking out ``$1,000'' and 
inserting in lieu thereof ``$7,000''.
    (c) Additional Special Pay.--Paragraph (4) of such section 
is amended by striking out subparagraphs (B), (C), and (D) and 
inserting in lieu thereof the following new subparagraphs:
            ``(B) $6,000 per year, if the officer has at least 
        three but less than 10 years of creditable service.
            ``(C) $15,000 per year, if the officer has 10 or 
        more years of creditable service.''.

SEC. 619. AVAILABILITY OF SPECIAL PAY FOR DUTY AT DESIGNATED HARDSHIP 
                    DUTY LOCATIONS.

    (a) Special Pay Authorized.--Subsection (a) of section 305 
of title 37, United States Code, is amended to read as follows:
    ``(a) Special Pay Authorized.--A member of a uniformed 
service who is entitled to basic pay may be paid special pay 
under this section at a monthly rate not to exceed $300 while 
the member is on duty at a location in the United States or 
outside the United States designated by the Secretary of 
Defense as a hardship duty location.''.
    (b) Cross References and Regulations.--Such section is 
further amended--
            (1) in subsection (b)--
                    (A) by inserting ``Exception for Certain 
                Members Serving in Certain Locations.--'' after 
                ``(b)''; and
                    (B) by striking out ``as foreign duty pay'' 
                and inserting in lieu thereof ``as hardship 
                duty location pay'';
            (2) in subsection (c)--
                    (A) by inserting ``Exception for Members 
                Receiving Career Sea Pay.--'' after ``(c)''; 
                and
                    (B) by striking out ``special pay under 
                this section'' and inserting in lieu thereof 
                ``hardship duty location pay under subsection 
                (a)''; and
            (3) by adding at the end the following new 
        subsection:
    ``(d) Regulations.--The Secretary of Defense shall 
prescribe regulations for the provision of hardship duty 
location pay under subsection (a), including the specific 
monthly rates at which the special pay will be available.''.
    (c) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 305. Special pay: hardship duty location pay''.

    (2) The table of sections at the beginning of chapter 5 of 
title 37, United States Code, is amended by striking out the 
item relating to section 305 and inserting in lieu thereof the 
following new item:

``305. Special pay: hardship duty location pay.''.

    (d) Conforming Amendment.--Section 907(d) of title 37, 
United States Code, is amended by striking out ``duty at 
certain places'' and inserting in lieu thereof ``duty at a 
hardship duty location''.
    (e) Transition.--Until such time as the Secretary of 
Defense prescribes regulations regarding the provision of 
hardship duty location pay under section 305 of title 37, 
United States Code, as amended by this section, the Secretary 
may continue to use the authority provided by such section 305, 
as in effect on the day before the date of the enactment of 
this Act, to provide special pay to enlisted members of the 
uniformed services on duty at certain places.

SEC. 620. DEFINITION OF SEA DUTY FOR PURPOSES OF CAREER SEA PAY.

    Section 305a(d) of title 37, United States Code, is 
amended--
            (1) in paragraph (1)(A), by striking out ``, ship-
        based staff, or ship-based aviation unit'';
            (2) in paragraph (1)(B), by striking out ``or ship-
        based staff'' ;
            (3) by redesignating paragraphs (2) and (3) as 
        paragraphs (3) and (4), respectively; and
            (4) by inserting after paragraph (1) the following 
        new paragraph:
    ``(2) The Secretary concerned may designate duty performed 
by a member while serving on a ship the primary mission of 
which is accomplished either while under way or in port as `sea 
duty' for purposes of this section, even though the duty is 
performed while the member is permanently or temporarily 
assigned to a ship-based staff or other unit not covered by 
paragraph (1).''.

SEC. 621. MODIFICATION OF SELECTED RESERVE REENLISTMENT BONUS.

    (a) Eligible Members.--Subsection (a)(1) of section 308b of 
title 37, United States Code, is amended by striking out ``ten 
years'' and inserting in lieu thereof ``14 years''.
    (b) Bonus Amounts; Payment.--Subsection (b) of such section 
is amended to read as follows:
    ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus 
under this section may not exceed--
            ``(A) $5,000, in the case of a member who reenlists 
        or extends an enlistment for a period of six years;
            ``(B) $2,500, in the case of a member who, having 
        never received a bonus under this section, reenlists or 
        extends an enlistment for a period of three years; and
            ``(C) $2,000, in the case of a member who, having 
        received a bonus under this section for a previous 
        three-year reenlistment or extension of an enlistment, 
        reenlists or extends the enlistment for an additional 
        period of three years.
    ``(2) Any bonus payable under this section shall be 
disbursed in one initial payment of an amount not to exceed 
one-half of the total amount of the bonus and subsequent 
periodic partial payments of the balance of the bonus. The 
Secretary concerned shall prescribe the amount of each partial 
payment and the schedule for making the partial payments.''.
    (c) Special Eligibility Requirements; Number of Individual 
Bonuses.--Subsection (c) of such section is amended to read as 
follows:
    ``(c) Condition on Eligibility; Limitation on Number of 
Bonuses.--(1) To be eligible for a second bonus under this 
section in the amount specified in subsection (b)(1)(C), a 
member must--
            ``(A) enter into the subsequent reenlistment or 
        extension of an enlistment for a period of three years 
        not later than the date on which the enlistment or 
        extension for which the first bonus was paid would 
        expire; and
            ``(B) still satisfy the designated skill or unit 
        requirements required under subsection (a)(2).
    ``(2) A member may not be paid more than one six-year bonus 
or two three-year bonuses under this section.''.
    (d) Effect of Failure To Serve Satisfactorily.--Subsection 
(d) of such section is amended to read as follows:
    ``(d) Repayment of Bonus.--A member who receives a bonus 
under this section and who fails, during the period for which 
the bonus was paid, to serve satisfactorily in the element of 
the Selected Reserve of the Ready Reserve with respect to which 
the bonus was paid shall refund to the United States an amount 
that bears the same ratio to the amount of the bonus paid to 
the member as the period that the member failed to serve 
satisfactorily bears to the total period for which the bonus 
was paid.''.
    (e) Clerical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Authority and 
        Eligibility Requirements.--'' after ``(a)'';
            (2) in subsection (e), by inserting 
        ``Regulations.--'' after ``(e)''; and
            (3) in subsection (f), by inserting ``Termination 
        of Authority.--'' after ``(f)''.

SEC. 622. MODIFICATION OF SELECTED RESERVE ENLISTMENT BONUS FOR FORMER 
                    ENLISTED MEMBERS.

    (a) Eligible Persons.--Subsection (a)(2) of section 308i of 
title 37, United States Code, is amended--
            (1) in subparagraph (A), by striking out ``10 
        years'' and inserting in lieu thereof ``14 years'';
            (2) in subparagraph (C), by striking out ``and'';
            (3) by redesignating subparagraph (D) as 
        subparagraph (E);
            (4) in subparagraph (E) (as so redesignated), by 
        inserting ``(except under this section)'' after 
        ``bonus''; and
            (5) by inserting after subparagraph (C) the 
        following new subparagraph:
            ``(D) is projected to occupy a position as a member 
        of the Selected Reserve in a specialty in which--
                    ``(i) the person successfully served while 
                a member on active duty; and
                    ``(ii) the person attained a level of 
                qualification while a member on active duty 
                commensurate with the grade and years of 
                service of the member; and''.
    (b) Bonus Amounts; Payment.--Subsection (b) of such section 
is amended to read as follows:
    ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus 
under this section may not exceed--
            ``(A) $5,000, in the case of a person who enlists 
        for a period of six years;
            ``(B) $2,500, in the case of a person who, having 
        never received a bonus under this section, enlists for 
        a period of three years; and
            ``(C) $2,000, in the case of a person who, having 
        received a bonus under this section for a previous 
        three-year enlistment, reenlists or extends the 
        enlistment for an additional period of three years.
    ``(2) Any bonus payable under this section shall be 
disbursed in one initial payment of an amount not to exceed 
one-half of the total amount of the bonus and subsequent 
periodic partial payments of the balance of the bonus. The 
Secretary concerned shall prescribe the amount of each partial 
payment and the schedule for making the partial payments.''.
    (c) Special Eligibility Requirements; Number of Individual 
Bonuses.--Subsection (c) of such section is amended to read as 
follows:
    ``(c) Condition on Eligibility; Limitation on Number of 
Bonuses.--(1) To be eligible for a second bonus under this 
section in the amount specified in subsection (b)(1)(C), a 
person must--
            ``(A) enter into a reenlistment or extension of an 
        enlistment for a period of three years not later than 
        the date on which the enlistment for which the first 
        bonus was paid would expire; and
            ``(B) still satisfy the eligibility requirements 
        under subsection (a).
    ``(2) A person may not be paid more than one six-year bonus 
or two three-year bonuses under this section.
    (d) Reorganization of Section.--Such section is further 
amended--
            (1) by redesignating subsections (e), (f), and (g) 
        as paragraphs (2), (3), and (4), respectively, of 
        subsection (d); and
            (2) by redesignating subsections (h) and (i) as 
        subsections (e) and (f), respectively.
    (e) Conforming and Clerical Amendments.--Such section is 
further amended--
            (1) in subsection (a), by inserting ``Authority and 
        Eligibility Requirements.--'' after ``(a)'';
            (2) in subsection (d)--
                    (A) by inserting ``Repayment of Bonus.--
                (1)'' after ``(d)'';
                    (B) in paragraphs (2) and (4), as 
                redesignated by subsection (d)(1), by striking 
                out ``subsection (d)'' and inserting in lieu 
                thereof ``paragraph (1)''; and
                    (C) in paragraph (3), as redesignated by 
                subsection (d)(1)--
                            (i) by striking out ``subsection 
                        (h)'' and inserting in lieu thereof 
                        ``subsection (e)''; and
                            (ii) by striking out ``subsection 
                        (d)'' and inserting in lieu thereof 
                        ``paragraph (1)'';
            (3) in subsection (e), as redesignated by 
        subsection (d)(2), by inserting ``Regulations.--'' 
        after ``(e)''; and
            (4) in subsection (f), as redesignated by 
        subsection (d)(2), by inserting ``Termination of 
        Authority.--'' after ``(f)''.

SEC. 623. EXPANSION OF RESERVE AFFILIATION BONUS TO INCLUDE COAST GUARD 
                    RESERVE.

    Section 308e of title 37, United States Code, is amended--
            (1) in subsection (a), by striking out ``Under 
        regulations prescribed by the Secretary of Defense, the 
        Secretary of a military department'' and inserting in 
        lieu thereof ``The Secretary concerned'';
            (2) in subsection (b)(3), by striking out 
        ``designated by the Secretary of Defense for the 
        purposes of this section'' and inserting in lieu 
        thereof ``designated for purposes of this section in 
        the regulations prescribed under subsection (f)'';
            (3) in subsection (c)(3), by striking out 
        ``regulations prescribed by the Secretary of Defense'' 
        and inserting in lieu thereof ``the regulations 
        prescribed under subsection (f)''; and
            (4) by adding at the end the following new 
        subsections:
    ``(f) This section shall be administered under regulations 
prescribed by the Secretary of Defense for the armed forces 
under the jurisdiction of the Secretary of Defense and by the 
Secretary of Transportation for the Coast Guard when the Coast 
Guard is not operating as a service in the Navy.
    ``(g) The authority in subsection (a) does not apply to the 
Secretary of Commerce and the Secretary of Health and Human 
Services.''.

SEC. 624. INCREASE IN SPECIAL PAY AND BONUSES FOR NUCLEAR-QUALIFIED 
                    OFFICERS.

    (a) Special Pay for Officers Extending Period of Active 
Service.--Section 312(a) of title 37, United States Code, is 
amended by striking out ``$12,000'' and inserting in lieu 
thereof ``$15,000''.
    (b) Nuclear Career Accession Bonus.--Section 312b(a)(1) of 
title 37, United States Code, is amended by striking out 
``$8,000'' and inserting in lieu thereof ``$10,000''.
    (c) Nuclear Career Annual Incentive Bonuses.--Section 312c 
of title 37, United States Code, is amended--
            (1) in subsection (a)(1), by striking out 
        ``$10,000'' and inserting in lieu thereof ``$12,000''; 
        and
            (2) in subsection (b)(1), by striking out 
        ``$4,500'' and inserting in lieu thereof ``$5,500''.
    (d) Effective Date.--(1) The amendments made by this 
section shall take effect as of October 1, 1997.
    (2) The amendments made by subsections (a) and (b) shall 
apply with respect to agreements accepted under sections 312(a) 
and 312b(a), respectively, of title 37, United States Code, on 
or after October 1, 1997.

SEC. 625. PROVISION OF BONUSES IN LIEU OF SPECIAL PAY FOR ENLISTED 
                    MEMBERS EXTENDING TOURS OF DUTY AT DESIGNATED 
                    LOCATIONS OVERSEAS.

    (a) Inclusion of Bonus Incentive.--(1) Section 314 of title 
37, United States Code, is amended to read as follows:

``Sec. 314. Special pay or bonus: qualified enlisted members extending 
                    duty at designated locations overseas

    ``(a) Covered Members.--This section applies with respect 
to an enlisted member of an armed force who--
            ``(1) is entitled to basic pay;
            ``(2) has a specialty that is designated by the 
        Secretary concerned for the purposes of this section;
            ``(3) has completed a tour of duty (as defined in 
        accordance with regulations prescribed by the Secretary 
        concerned) at a location outside the 48 contiguous 
        States and the District of Columbia that is designated 
        by the Secretary concerned for the purposes of this 
        section; and
            ``(4) at the end of that tour of duty executes an 
        agreement to extend that tour for a period of not less 
        than one year.
    ``(b) Special Pay or Bonus Authorized.--Upon the acceptance 
by the Secretary concerned of the agreement providing for an 
extension of the tour of duty of an enlisted member described 
in subsection (a), the member is entitled, at the election of 
the Secretary concerned, to either--
            ``(1) special pay in monthly installments in an 
        amount prescribed by the Secretary, but not to exceed 
        $80 per month; or
            ``(2) an annual bonus in an amount prescribed by 
        the Secretary, but not to exceed $2,000 per year.
    ``(c) Selection and Payment of Special Pay or Bonus.--Not 
later than the date on which the Secretary concerned accepts an 
agreement described in subsection (a)(4) providing for the 
extension of a member's tour of duty, the Secretary concerned 
shall notify the member regarding whether the member will 
receive special pay or a bonus under this section. The payment 
rate for the special pay or bonus shall be fixed at the time of 
the agreement and may not be changed during the period of the 
extended tour of duty. The Secretary concerned may pay a bonus 
under this section either in a lump sum or installments.
    ``(d) Repayment of Bonus.--(1) A member who, having entered 
into a written agreement to extend a tour of duty for a period 
under subsection (a), receives a bonus payment under subsection 
(b)(2) for a 12-month period covered by the agreement and 
ceases during that 12-month period to perform the agreed tour 
of duty shall refund to the United States the unearned portion 
of the bonus. The unearned portion of the bonus is the amount 
by which the amount of the bonus paid to the member exceeds the 
amount determined by multiplying the amount of the bonus paid 
by the percent determined by dividing 12 into the number of 
full months during which the member performed the duty in the 
12-month period.
    ``(2) The Secretary concerned may waive the obligation of a 
member to reimburse the United States under paragraph (1) if 
the Secretary determines that conditions and circumstances 
warrant the waiver.
    ``(3) An obligation to repay the United States imposed 
under paragraph (1) is for all purposes a debt owed to the 
United States.
    ``(4) A discharge in bankruptcy under title 11 that is 
entered less than five years after the termination of the 
agreement does not discharge the member signing the agreement 
from a debt arising under the agreement or under paragraph (1). 
This paragraph applies to any case commenced under title 11 on 
or after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1998.
    ``(e) Effect of Rest and Recuperative Absence.--A member 
who elects to receive one of the benefits specified in section 
705(b) of title 10 as part of the extension of a tour of duty 
is not entitled to the special pay authorized by subsection 
(b)(1) for the period of the extension of duty for which the 
benefit under such section is provided.''.
    (2) The item relating to section 314 in the table of 
sections at the beginning of chapter 5 of such title is amended 
to read as follows:

``314. Special pay or bonus: qualified enlisted members extending duty 
          at designated locations overseas.''.

    (b) Application of Amendment.--Section 314 of title 37, 
United States Code, as amended by subsection (a), shall apply 
with respect to an agreement to extend a tour of duty as 
provided in such section executed on or after October 1, 1997.

SEC. 626. INCREASE IN AMOUNT OF FAMILY SEPARATION ALLOWANCE.

    Section 427 of title 37, United States Code (as amended by 
section 603), is further amended in subsection (a)(1) by 
striking out ``$75'' and inserting in lieu thereof ``$100''.

SEC. 627. DEADLINE FOR PAYMENT OF READY RESERVE MUSTER DUTY ALLOWANCE.

    Section 433(c) of title 37, United States Code, is 
amended--
            (1) in the first sentence, by striking out ``and 
        shall be'' and all that follows through ``is 
        performed''; and
            (2) by inserting after the first sentence the 
        following new sentence: ``The allowance may be paid to 
        the member before, on, or after the date on which the 
        muster duty is performed, but not later than 30 days 
        after that date.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS BEFORE 
                    APPROVAL OF MEMBER'S COURT-MARTIAL SENTENCE.

    Section 406(h)(2)(C) of title 37, United States Code, is 
amended by striking out the comma at the end of clause (iii) 
and all that follows through ``title 10.'' and inserting in 
lieu thereof a period.

SEC. 632. DISLOCATION ALLOWANCE.

    (a) In General.--Section 407 of title 37, United States 
Code, is amended to read as follows:

``Sec. 407. Travel and transportation allowances: dislocation allowance

    ``(a) Eligibility for Primary Dislocation Allowance.--(1) 
Under regulations prescribed by the Secretary concerned, a 
member of a uniformed service described in paragraph (2) is 
entitled to a primary dislocation allowance at the rate 
determined under subsection (c) for the member's pay grade and 
dependency status.
    ``(2) A member of the uniformed services referred to in 
paragraph (1) is any of the following:
            ``(A) A member who makes a change of permanent 
        station and the member's dependents actually make an 
        authorized move in connection with the change, 
        including a move by the dependents--
                    ``(i) to join the member at the member's 
                duty station after an unaccompanied tour of 
                duty when the member's next tour of duty is an 
                accompanied tour at the same station; and
                    ``(ii) to a location designated by the 
                member after an accompanied tour of duty when 
                the member's next tour of duty is an 
                unaccompanied tour at the same duty station.
            ``(B) A member whose dependents actually move 
        pursuant to section 405a(a), 406(e), 406(h), or 554 of 
        this title.
            ``(C) A member whose dependents actually move from 
        their place of residence under circumstances described 
        in section 406a of this title.
            ``(D) A member who is without dependents and--
                    ``(i) actually moves to a new permanent 
                station where the member is not assigned to 
                quarters of the United States; or
                    ``(ii) actually moves from a place of 
                residence under circumstances described in 
                section 406a of this title.
            ``(E) A member who is ordered to move in connection 
        with the closure or realignment of a military 
        installation and, as a result, the member's dependents 
        actually move or, in the case of a member without 
        dependents, the member actually moves.
    ``(3) If a primary dislocation allowance is paid under this 
subsection to a member described in subparagraph (C) or (D)(ii) 
of paragraph (2), the member is not entitled to another 
dislocation allowance as a member described in subparagraph (A) 
or (E) of such paragraph in connection with the same move.
    ``(b) Secondary Allowance Authorized Under Certain 
Circumstances.--(1) Under regulations prescribed by the 
Secretary concerned, whenever a member is entitled to a primary 
dislocation allowance under subsection (a) as a member 
described in paragraph (2)(C) or (2)(D)(ii) of such subsection, 
the member is also entitled to a secondary dislocation 
allowance at the rate determined under subsection (c) for the 
member's pay grade and dependency status if, subsequent to the 
member or the member's dependents actually moving from their 
place of residence under circumstances described in section 
406a of this title, the member or member's dependents complete 
that move to a new location and then actually move from that 
new location to another location also under circumstances 
described in section 406a of this title.
    ``(2) If a secondary dislocation allowance is paid under 
this subsection, the member is not entitled to a dislocation 
allowance as a member described in paragraph (2)(A) or (2)(E) 
of subsection (a) in connection with those moves.
    ``(c) Dislocation Allowance Rates.--(1) The amount of the 
dislocation allowance to be paid under this section to a member 
shall be based on the member's pay grade and dependency status 
at the time the member becomes entitled to the allowance.
    ``(2) The initial rate for the dislocation allowance, for 
each pay grade and dependency status, shall be equal to the 
rate in effect for that pay grade and dependency status on 
December 31, 1997, as adjusted by the average percentage 
increase in the rates of basic pay for calendar year 1998. 
Effective on the same date that the monthly rates of basic pay 
for members are increased for a subsequent calendar year, the 
Secretary of Defense shall adjust the rates for the dislocation 
allowance for that calendar year by the percentage equal to the 
average percentage increase in the rates of basic pay for that 
calendar year.
    ``(d) Fiscal Year Limitation; Exceptions.--(1) A member is 
not entitled to more than one dislocation allowance under this 
section during a fiscal year unless--
            ``(A) the Secretary concerned finds that the 
        exigencies of the service require the member to make 
        more than one change of permanent station during the 
        fiscal year;
            ``(B) the member is ordered to a service school as 
        a change of permanent station;
            ``(C) the member's dependents are covered by 
        section 405a(a), 406(e), 406(h), or 554 of this title; 
        or
            ``(D) subparagraph (C) or (D)(ii) of subsection 
        (a)(2) or subsection (b) apply with respect to the 
        member or the member's dependents.
    ``(2) This subsection does not apply in time of national 
emergency or in time of war.
    ``(e) First or Last Duty.--A member is not entitled to 
payment of a dislocation allowance under this section when the 
member is ordered from the member's home to the member's first 
duty station or from the member's last duty station to the 
member's home.
    ``(f) Rule of Construction.--For purposes of this section, 
a member whose dependents may not make an authorized move in 
connection with a change of permanent station is considered a 
member without dependents.
    ``(g) Advance Payment.--A dislocation allowance payable 
under this section may be paid in advance.''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on January 1, 1998.

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

SEC. 641. ONE-YEAR OPPORTUNITY TO DISCONTINUE PARTICIPATION IN SURVIVOR 
                    BENEFIT PLAN.

    (a) Election To Discontinue Within One Year After Second 
Anniversary of Commencement of Payment of Retired Pay.--(1) 
Subchapter II of chapter 73 of title 10, United States Code, is 
amended by inserting after section 1448 the following new 
section:

``Sec. 1448a. Election to discontinue participation: one-year 
                    opportunity after second anniversary of 
                    commencement of payment of retired pay

    ``(a) Authority.--A participant in the Plan may, subject to 
the provisions of this section, elect to discontinue 
participation in the Plan at any time during the one-year 
period beginning on the second anniversary of the date on which 
payment of retired pay to the participant commences.
    ``(b) Concurrence of Spouse.--
            ``(1) Concurrence required.--A married participant 
        may not (except as provided in paragraph (2)) make an 
        election under subsection (a) without the concurrence 
        of the participant's spouse.
            ``(2) Exceptions.--A participant may make such an 
        election without the concurrence of the participant's 
        spouse by establishing to the satisfaction of the 
        Secretary concerned that one of the conditions 
        specified in section 1448(a)(3)(C) of this title 
        exists.
            ``(3) Form of concurrence.--The concurrence of a 
        spouse under paragraph (1) shall be made in such 
        written form and shall contain such information as may 
        be required under regulations prescribed by the 
        Secretary of Defense.
    ``(c) Limitation on Election When Former Spouse Coverage in 
Effect.--The limitation set forth in section 1450(f)(2) of this 
title applies to an election to discontinue participation in 
the Plan under subsection (a).
    ``(d) Withdrawal of Election To Discontinue.--Section 
1448(b)(1)(D) of this title applies to an election under 
subsection (a).
    ``(e) Consequences of Discontinuation.--Section 
1448(b)(1)(E) of this title applies to an election under 
subsection (a).
    ``(f) Notice to Affected Beneficiaries.--The Secretary 
concerned shall notify any former spouse or other natural 
person previously designated under section 1448(b) of this 
title of an election to discontinue participation under 
subsection (a).
    ``(g) Effective Date of Election.--An election under 
subsection (a) is effective as of the first day of the first 
calendar month following the month in which the election is 
received by the Secretary concerned.
    ``(h) Inapplicability of Irrevocability Provisions.--
Paragraphs (4)(B) and (5)(C) of section 1448(a) of this title 
do not apply to prevent an election under subsection (a).''.
    (2) The table of sections at the beginning of such 
subchapter is amended by inserting after the item relating to 
section 1448 the following new item:

``1448a. Election to discontinue participation: one-year opportunity 
          after second anniversary of commencement of payment of retired 
          pay.''.

    (b) Transition Provision for Current Participants.--
Notwithstanding the limitation on the time for making an 
election under section 1448a of title 10, United States Code 
(as added by subsection (a)), that is specified in subsection 
(a) of such section, a participant in the Survivor Benefit Plan 
under subchapter II of chapter 73 of such title may make an 
election in accordance with that section within one year after 
the effective date of that section under subsection (c) if the 
second anniversary of the commencement of payment of retired 
pay to the participant precedes that effective date.
    (c) Effective Date.--Section 1448a of title 10, United 
States Code, as added by subsection (a), shall take effect 180 
days after the date of the enactment of this Act.

SEC. 642. TIME IN WHICH CHANGE IN SURVIVOR BENEFIT COVERAGE FROM FORMER 
                    SPOUSE TO SPOUSE MAY BE MADE.

    (a) Extension of Time for Change.--Section 1450(f)(1)(C) of 
title 10, United States Code, is amended by adding at the end 
the following new sentence: ``Notwithstanding the preceding 
sentence, a change of election under this subsection to provide 
an annuity to a spouse instead of a former spouse may (subject 
to paragraph (2)) be made at any time after the person 
providing the annuity remarries without regard to the time 
limitation in section 1448(a)(5)(B) of this title.''.
    (b) Applicability.--The amendment made by subsection (a) 
shall apply with respect to marriages occurring before, on, or 
after the date of the enactment of this Act.

SEC. 643. REVIEW OF FEDERAL FORMER SPOUSE PROTECTION LAWS.

    (a) Review Required.--The Secretary of Defense shall carry 
out a comprehensive review (including a comparison) of--
            (1) the protections, benefits, and treatment 
        afforded under Federal law to members and former 
        members of the uniformed services and former spouses of 
        such persons; and
            (2) the protections, benefits, and treatment 
        afforded under Federal law to employees and former 
        employees of the Government and former spouses of such 
        persons.
    (b) Military Personnel Matters To Be Reviewed.--In the case 
of members and former members of the uniformed services and 
former spouses of such persons, the review under subsection (a) 
shall include the following:
            (1) All provisions of law (principally those 
        originally enacted in the Uniformed Services Former 
        Spouses' Protection Act (title X of Public Law 97-252)) 
        that--
                    (A) establish, provide for the enforcement 
                of, or otherwise protect interests of members 
                and former members of the uniformed services 
                and former spouses of such persons in retired 
                or retainer pay of members and former members; 
                or
                    (B) provide other benefits for members and 
                former members of the uniformed services and 
                former spouses of such persons.
            (2) The experience of the uniformed services in 
        administering those provisions of law, including the 
        adequacy and effectiveness of the legal assistance 
        provided by the Department of Defense in matters 
        related to the Uniformed Services Former Spouses' 
        Protection Act.
            (3) The experience of members and former members of 
        the uniformed services and former spouses of such 
        persons in the administration of those provisions of 
        law.
            (4) The experience of members and former members of 
        the uniformed services and former spouses of such 
        persons in the application of those provisions of law 
        by State courts.
            (5) The history of State statutes and State court 
        interpretations of the Uniformed Services Former 
        Spouses' Protection Act and other provisions of Federal 
        law described in paragraph (1)(A) and the extent to 
        which those interpretations follow those laws.
    (c) Civilian Personnel Matters To Be Reviewed.--In the case 
of former spouses of employees and former employees of the 
Government, the review under subsection (a) shall include the 
following:
            (1) All provisions of law that--
                    (A) establish, provide for the enforcement 
                of, or otherwise protect interests of employees 
                and former employees of the Government and 
                former spouses of such persons in annuities of 
                employees and former employees under Federal 
                employees' retirement systems; or
                    (B) provide other benefits for employees 
                and former employees of the Government and 
                former spouses of such persons.
            (2) The experience of the Office of Personnel 
        Management and other agencies of the Government in 
        administering those provisions of law.
            (3) The experience of employees and former 
        employees of the Government and former spouses of such 
        persons in the administration of those provisions of 
        law.
            (4) The experience of employees and former 
        employees of the Government and former spouses of such 
        persons in the application of those provisions of law 
        by State courts.
    (d) Sampling Authorized.--The Secretary may use sampling in 
carrying out the review under this section.
    (e) Report.--Not later than September 30, 1999, the 
Secretary shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives a report on the results of the review under 
subsection (a). The report shall include any recommendations 
for legislation that the Secretary considers appropriate.

SEC. 644. ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.

    (a) Survivor Annuity.--(1) The Secretary concerned shall 
pay an annuity to the qualified surviving spouse of each member 
of the uniformed services who--
            (A) died before March 21, 1974, and was entitled to 
        retired or retainer pay on the date of death; or
            (B) was a member of a reserve component of the 
        Armed Forces during the period beginning on September 
        21, 1972, and ending on October 1, 1978, and at the 
        time of his death would have been entitled to retired 
        pay under chapter 67 of title 10, United States Code 
        (as in effect before December 1, 1994), but for the 
        fact that he was under 60 years of age.
    (2) A qualified surviving spouse for purposes of this 
section is a surviving spouse who has not remarried and who is 
not eligible for an annuity under section 4 of Public Law 92-
425 (10 U.S.C. 1448 note).
    (b) Amount of Annuity.--(1) An annuity under this section 
shall be paid at the rate of $165 per month, as adjusted from 
time to time under paragraph (3).
    (2) An annuity paid to a surviving spouse under this 
section shall be reduced by the amount of any dependency and 
indemnity compensation (DIC) to which the surviving spouse is 
entitled under section 1311(a) of title 38, United States Code.
    (3) Whenever after the date of the enactment of this Act 
retired or retainer pay is increased under section 1401a(b)(2) 
of title 10, United States Code, each annuity that is payable 
under this section shall be increased at the same time and by 
the same total percent. The amount of the increase shall be 
based on the amount of the monthly annuity payable before any 
reduction under this section.
    (c) Application Required.--No benefit shall be paid to any 
person under this section unless an application for such 
benefit is filed with the Secretary concerned by or on behalf 
of such person.
    (d) Definitions.--For purposes of this section:
            (1) The terms ``uniformed services'' and 
        ``Secretary concerned'' have the meanings given such 
        terms in section 101 of title 37, United States Code.
            (2) The term ``surviving spouse'' has the meaning 
        given the terms ``widow'' and ``widower'' in paragraphs 
        (3) and (4) of section 1447 of title 10, United States 
        Code.
    (e) Prospective Applicability.--(1) Annuities under this 
section shall be paid for months beginning after the month in 
which this Act is enacted.
    (2) No benefit shall accrue to any person by reason of the 
enactment of this section for any period before the first month 
that begins after the month in which this Act is enacted.
    (f) Expiration of Authority.--The authority to pay 
annuities under this section shall expire on September 30, 
2001.

SEC. 645. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME 
                    WIDOWS.

    (a) Payments To Be Made by Secretary of Veterans Affairs.--
Section 653(d) of the National Defense Authorization Act, 
Fiscal Year 1989 (10 U.S.C. 1448 note) is amended--
            (1) by inserting ``(1)'' before ``An annuity'' the 
        first place it appears; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) Payment of annuities under this section shall be made 
by the Secretary of Veterans Affairs. In making such payments, 
the Secretary shall combine the payment under this section with 
the payment of any amount due the same person under section 4 
of Public Law 92-425 (10 U.S.C. 1448 note), as provided in 
subsection (e)(1) of that section. The Secretaryconcerned shall 
transfer amounts for payments under this section to the Secretary of 
Veterans Affairs in the same manner as is provided under subsection 
(e)(2) of section 4 of Public Law 92-425 for payments under that 
section.''.
    (b) Combination With Other Benefits.--Section 4(e)(1) of 
Public Law 92-425 (10 U.S.C. 1448 note) is amended--
            (1) by inserting after the first sentence the 
        following new sentence: ``In making such payments, the 
        Secretary shall combine with the payment under this 
        section payment of any amount due the same person under 
        section 653(d) of the National Defense Authorization 
        Act, Fiscal Year 1989 (10 U.S.C. 1448 note).''; and
            (2) by inserting ``(and, if applicable, under 
        section 653(d) of the National Defense Authorization 
        Act, Fiscal Year 1989)'' after ``under this section''.
    (c) Effective Date.--The amendments made by this section 
take effect on the first day of the first month beginning after 
the date of the enactment of this Act and shall apply with 
respect to payments of benefits for months beginning on or 
after that date, except that the Secretary of Veterans Affairs 
may provide, if necessary for administrative implementation, 
that such amendments shall apply beginning with a later month, 
not later than the first month beginning more than 180 days 
after the date of the enactment of this Act.

                       Subtitle E--Other Matters

SEC. 651. LOAN REPAYMENT PROGRAM FOR COMMISSIONED OFFICERS IN CERTAIN 
                    HEALTH PROFESSIONS.

    (a) Chapter 109 of title 10, United States Code, is amended 
by adding at the end the following new section:

``Sec. 2173. Education loan repayment program: commissioned officers in 
                    specified health professions

    ``(a) Authority To Repay Education Loans.--For the purpose 
of maintaining adequate numbers of commissioned officers of the 
armed forces on active duty who are qualified in the various 
health professions, the Secretary of a military department may 
repay, in the case of a person described in subsection (b), a 
loan that--
            ``(1) was used by the person to finance education 
        regarding a health profession; and
            ``(2) was obtained from a governmental entity, 
        private financial institution, school, or other 
        authorized entity.
    ``(b) Eligible Persons.--To be eligible to obtain a loan 
repayment under this section, a person must--
            ``(1) satisfy one of the requirements specified in 
        subsection (c);
            ``(2) be fully qualified for, or hold, an 
        appointment as a commissioned officer in one of the 
        health professions; and
            ``(3) sign a written agreement to serve on active 
        duty, or, if on active duty, to remain on active duty 
        for a period in addition to any other incurred active 
        duty obligation.
    ``(c) Academic and Professional Requirements.--One of the 
following academic requirements must be satisfied for purposes 
of determining the eligibility of a person for a loan repayment 
under this section:
            ``(1) The person is fully qualified in a health 
        care profession that the Secretary of the military 
        department concerned has determined to be necessary to 
        meet identified skill shortages.
            ``(2) The person is enrolled as a full-time student 
        in the final year of a course of study at an accredited 
        educational institution leading to a degree in a health 
        profession other than medicine or osteopathic medicine.
            ``(3) The person is enrolled in the final year of 
        an approved graduate program leading to specialty 
        qualification in medicine, dentistry, osteopathic 
        medicine, or other health profession.
    ``(d) Certain Persons Ineligible.--Participants of the 
Armed Forces Health Professions Scholarship and Financial 
Assistance program under subchapter I of chapter 105 of this 
title and students of the Uniformed Services University of the 
Health Sciences established under section 2112 of this title 
are not eligible for the repayment of an education loan under 
this section.
    ``(e) Loan Repayments.--(1) Subject to the limits 
established by paragraph (2), a loan repayment under this 
section may consist of payment of the principal, interest, and 
related expenses of a loan obtained by a person described in 
subsection (b) for--
            ``(A) all educational expenses, comparable to all 
        educational expenses recognized under section 2127(a) 
        of this title for participants in the Armed Forces 
        Health Professions Scholarship and Financial Assistance 
        program; and
            ``(B) reasonable living expenses, not to exceed 
        expenses comparable to the stipend paid under section 
        2121(d) of this title for participants in the Armed 
        Forces Health Professions Scholarship and Financial 
        Assistance program.
    ``(2) For each year of obligated service that a person 
agrees to serve in an agreement described in subsection (b)(3), 
the Secretary of the military department concerned may pay not 
more than $22,000 on behalf of the person. This maximum amount 
shall be increased annually by the Secretary of Defense 
effective October 1 of each year by the percentage equal to the 
percent increase in the average annual cost of educational 
expenses and stipend costs of a single scholarship under the 
Armed Forces Health Professions Scholarship and Financial 
Assistance program. The total amount that may be repaid on 
behalf of any person may not exceed an amount determined on the 
basis of a four-year active duty service obligation.
    ``(f) Active Duty Service Obligation.--(1) A person 
entering into an agreement described in subsection (b)(3) 
incurs an active duty service obligation. The length of this 
obligation shall be determined under regulations prescribed by 
the Secretary of Defense, but those regulations may not provide 
for a period of obligation of less than one year for each 
maximum annual amount, or portion thereof, paid on behalf of 
the person for qualified loans.
    ``(2) For persons on active duty before entering into the 
agreement, the active duty service obligation shall be served 
consecutively to any other obligation incurred under the 
agreement.
    ``(g) Effect of Failure To Complete Obligation.--A 
commissioned officer who is relieved of the officer's active 
duty obligation under this section before the completion of 
that obligation may be given, with or without the consent of 
the officer, any alternative obligation comparable to any of 
the alternative obligations authorized by section 2123(e) of 
this title for participants in the Armed Forces Health 
Professions Scholarship and Financial Assistance program.
    ``(h) Regulations.--The Secretary of Defense shall 
prescribe regulations to carry out this section, including 
standards for qualified loans and authorized payees and other 
terms and conditions for the making of loan repayments.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2173. Education loan repayment program: commissioned officers in 
          specified health professions.''.

SEC. 652. CONFORMANCE OF NOAA COMMISSIONED OFFICERS SEPARATION PAY TO 
                    SEPARATION PAY FOR MEMBERS OF OTHER UNIFORMED 
                    SERVICES.

    (a) Elimination of Limitations on Amount of Separation 
Pay.--Section 9 of the Coast and Geodetic Survey Commissioned 
Officers' Act of 1948 (33 U.S.C. 853h) is amended--
            (1) in subsection (b)(1), by striking out ``, or 
        $30,000, whichever is less'';
            (2) in subsection (b)(2), by striking out ``, but 
        in no event more than $15,000''; and
            (3) in subsection (d), by striking out ``(1)'', and 
        by striking out paragraph (2).
    (b) Waiver of Recoupment of Amounts Withheld for Tax 
Purposes From Certain Separation Pay.--Section 9(e)(2) of the 
Coast and Geodetic Survey Commissioned Officers' Act of 1948 
(33 U.S.C. 853h(e)(2)) is amended in the first sentence by 
inserting before the period at the end the following: ``, less 
the amount of Federal income tax withheld from such pay (such 
withholding being at the flat withholding rate for Federal 
income tax withholding, as in effect pursuant to regulations 
prescribed under chapter 24 of the Internal Revenue Code of 
1986)''.
    (c) Effective Date and Application.--The amendments made by 
this section shall take effect as of October 1, 1997, and shall 
apply to payments of separation pay that are made after 
September 30, 1997.

SEC. 653. ELIGIBILITY OF PUBLIC HEALTH SERVICE OFFICERS AND NOAA 
                    COMMISSIONED CORPS OFFICERS FOR REIMBURSEMENT OF 
                    ADOPTION EXPENSES.

    (a) Public Health Service.--Section 221(a) of the Public 
Health Service Act (42 U.S.C. 213a(a)) is amended by adding at 
the end the following new paragraph:
            ``(16) Section 1052, Reimbursement for adoption 
        expenses.''.
    (b) National Oceanic and Atmospheric Administration.--
Section 3(a) of the Act of August 10, 1956 (33 U.S.C. 857a(a)), 
is amended by adding at the end the following new paragraph:
            ``(16) Section 1052, Reimbursement for adoption 
        expenses.''.
    (c) Prospective Applicability.--The amendments made by this 
section shall apply only to adoptions that are completed on or 
after the date of the enactment of this Act.

SEC. 654. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES TO WORLD 
                    WAR II VETERANS WHO SERVED AS GUERRILLA FIGHTERS IN 
                    THE PHILIPPINES.

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

SEC. 655. SUBSISTENCE OF MEMBERS OF THE ARMED FORCES ABOVE THE POVERTY 
                    LEVEL.

    (a) Study and Report.--(1) The Secretary of Defense shall 
conduct a study of members of the Armed Forces and their 
families who subsist at, near, or below the poverty level. The 
study shall include the following:
            (A) An analysis of potential solutions for ensuring 
        that members of the Armed Forces and their families do 
        not have to subsist at, near, or below the poverty 
        level, including potential solutions involving changes 
        in the system of allowances for members.
            (B) Identification of the military populations most 
        likely to need income support under Federal Government 
        programs, including--
                    (i) the populations living in areas of the 
                United States where housing costs are notably 
                high;
                    (ii) the populations living outside the 
                United States; and
                    (iii) the number of persons in each 
                identified population.
            (C) The desirability of increasing rates of basic 
        pay and allowances for members over a defined period of 
        years by a range of percentages that provides for 
        higher percentage increases for lower ranking members 
        than for higher ranking members.
    (2) Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress 
a report containing the results of the study and such 
recommendations as the Secretary considers to be appropriate.
    (b) Implementation of Department of Defense Special 
Supplemental Food Program for Personnel Outside the United 
States.--(1) Subsection (b) of section 1060a of title 10, 
United States Code, is amended to read as follows:
    ``(b) Federal Payments and Commodities.--For the purpose of 
obtaining Federal payments and commodities in order to carry 
out the program referred to in subsection (a), the Secretary of 
Agriculture shall make available to the Secretary of Defense 
the same payments and commodities as are made for the special 
supplemental food program in the United States under section 17 
of the Child Nutrition Act of 1966 (42 U.S.C. 1786). The 
Secretary of Defense may use funds available for the Department 
of Defense to carry out the program under subsection (a).''.
    (2) Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress 
a report regarding the intentions of the Secretary regarding 
implementation of the program authorized under section 1060a of 
title 10, United States Code, including any plans to implement 
the program.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include 
          surviving spouse and child dependents of certain deceased 
          members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Sec. 703. Study concerning the provision of comparative information.

                       Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for Uniformed 
          Services Treatment Facilities.
Sec. 722. Continued acquisition of reduced-cost drugs.
Sec. 723. Limitation on total payments.

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

Sec. 731. Improvements in health care coverage and access for members 
          assigned to certain duty locations far from sources of care.
Sec. 732. Waiver or reduction of copayments under overseas dental 
          program.
Sec. 733. Premium collection requirements for medical and dental 
          insurance programs; extension of deadline for implementation 
          of dental insurance program for military retirees.
Sec. 734. Dental insurance plan coverage for retirees of the Public 
          Health Service and NOAA.
Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for 
          services.
Sec. 736. Use of personal services contracts for provision of health 
          care services and legal protection for providers.
Sec. 737. Portability of State licenses for Department of Defense health 
          care professionals.
Sec. 738. Standard form and requirements regarding claims for payment 
          for services.
Sec. 739. Chiropractic health care demonstration program.

                        Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician 
          assistant training program of Army Medical Department.
Sec. 742. Payment for emergency health care overseas for military and 
          civilian personnel of the On-Site Inspection Agency.
Sec. 743. Authority for agreement for use of medical resource facility, 
          Alamogordo, New Mexico.
Sec. 744. Disclosures of cautionary information on prescription 
          medications.
Sec. 745. Competitive procurement of certain ophthalmic services.
Sec. 746. Comptroller General study of adequacy and effect of maximum 
          allowable charges for physicians under CHAMPUS.
Sec. 747. Comptroller General study of Department of Defense pharmacy 
          programs.
Sec. 748. Comptroller General study of Navy graduate medical education 
          program.
Sec. 749. Study of expansion of pharmaceuticals by mail program to 
          include additional Medicare-eligible covered beneficiaries.
Sec. 750. Comptroller General study of requirement for military medical 
          facilities in National Capital Region.
Sec. 751. Report on policies and programs to promote healthy lifestyles 
          for members of the Armed Forces and their dependents.
Sec. 752. Sense of Congress regarding quality health care for retirees.

                    Subtitle F--Persian Gulf Illness

Sec. 761. Definitions.
Sec. 762. Plan for health care services for Persian Gulf veterans.
Sec. 763. Comptroller General study of revised disability criteria for 
          physical evaluation boards.
Sec. 764. Medical care for certain reserves who served in Southwest Asia 
          during the Persian Gulf War.
Sec. 765. Improved medical tracking system for members deployed overseas 
          in contingency or combat operations.
Sec. 766. Notice of use of investigational new drugs or drugs unapproved 
          for their applied use.
Sec. 767. Report on plans to track location of members in a theater of 
          operations.
Sec. 768. Sense of Congress regarding the deployment of specialized 
          units for detecting and monitoring chemical, biological, and 
          similar hazards in a theater of operations.
Sec. 769. Report on effectiveness of research efforts regarding Gulf War 
          illnesses.
Sec. 770. Persian Gulf illness clinical trials program.
Sec. 771. Sense of Congress concerning Gulf War illness.

                    Subtitle A--Health Care Services

SEC. 701. EXPANSION OF RETIREE DENTAL INSURANCE PLAN TO INCLUDE 
                    SURVIVING SPOUSE AND CHILD DEPENDENTS OF CERTAIN 
                    DECEASED MEMBERS.

    Section 1076c(b)(4) of title 10, United States Code, is 
amended--
            (1) in subparagraph (A)--
                    (A) by striking out ``dies'' and inserting 
                in lieu thereof ``died''; and
                    (B) by striking out ``or'' at the end of 
                the subparagraph;
            (2) by striking out the period at the end of 
        subparagraph (B) and inserting in lieu thereof ``; 
        or''; and
            (3) by adding at the end the following new 
        subparagraph:
                    ``(C) who died while on active duty for a 
                period of more than 30 days and whose eligible 
                dependents are not eligible, or no longer 
                eligible, for dental benefits under section 
                1076a of this title pursuant to subsection 
                (i)(2) of such section.''.

SEC. 702. PROVISION OF PROSTHETIC DEVICES TO COVERED BENEFICIARIES.

    (a) Inclusion Among Authorized Care.--Subsection (a) of 
section 1077 of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(15) Prosthetic devices, as determined by the 
        Secretary of Defense to be necessary because of 
        significant conditions resulting from trauma, 
        congenital anomalies, or disease.''.
    (b) Conforming Amendment.--Subsection (b) of such section 
is amended by striking out paragraph (2) and inserting in lieu 
thereof the following new paragraph:
            ``(2) Hearing aids, orthopedic footwear, and 
        spectacles, except that, outside of the United States 
        and at stations inside the United States where adequate 
        civilian facilities are unavailable, such items may be 
        sold to dependents at cost to the United States.''.

SEC. 703. STUDY CONCERNING THE PROVISION OF COMPARATIVE INFORMATION.

    (a) Study.--The Secretary of Defense shall conduct a study 
concerning the provision of the information described in 
subsection (b) to beneficiaries under the TRICARE program 
established under the authority of chapter 55 of title 10, 
United States Code, and prepare and submit to Congress a report 
concerning such study.
    (b) Provision of Comparative Information.--Information 
described in this subsection, with respect to a managed care 
entity that contracts with the Secretary of Defense to provide 
medical assistance under the program described in subsection 
(a), shall include the following:
            (1) The benefits covered by the entity involved, 
        including--
                    (A) covered items and services beyond those 
                provided under a traditional fee-for-service 
                program;
                    (B) any beneficiary cost sharing; and
                    (C) any maximum limitations on out-of-
                pocket expenses.
            (2) The net monthly premium, if any, under the 
        entity.
            (3) The service area of the entity.
            (4) To the extent available, quality and 
        performance indicators for the benefits under the 
        entity (and how they compare to such indicators under 
        the traditional fee-for-service programs in the area 
        involved), including--
                    (A) disenrollment rates for enrollees 
                electing to receive benefits through the entity 
                for the previous two years (excluding 
                disenrollment due to death or moving outside 
                the service area of the entity);
                    (B) information on enrollee satisfaction;
                    (C) information on health process and 
                outcomes;
                    (D) grievance procedures;
                    (E) the extent to which an enrollee may 
                select the health care provider of their 
                choice, including health care providers within 
                the network of the entity and out-of-network 
                health care providers (if the entity covers 
                out-of-network items and services); and
                    (F) an indication of enrollee exposure to 
                balance billing and the restrictions on 
                coverage of items and services provided to such 
                enrollee by an out-of-network health care 
                provider.
            (5) Whether the entity offers optional supplemental 
        benefits and the terms and conditions (including 
        premiums) for such coverage.
            (6) An overall summary description as to the method 
        of compensation of participating physicians.

                      Subtitle B--Tricare Program

SEC. 711. ADDITION OF DEFINITION OF TRICARE PROGRAM TO TITLE 10.

    Section 1072 of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(7) The term `TRICARE program' means the managed 
        health care program that is established by the 
        Department of Defense under the authority of this 
        chapter, principally section 1097 of this title, and 
        includes the competitive selection of contractors to 
        financially underwrite the delivery of health care 
        services under the Civilian Health and Medical Program 
        of the Uniformed Services.''.

SEC. 712. PLAN FOR EXPANSION OF MANAGED CARE OPTION OF TRICARE PROGRAM.

    (a) Plan for Expansion of TRICARE Prime.--The Secretary of 
Defense shall prepare a plan for the expansion of the managed 
care option of the TRICARE Program, known as TRICARE Prime, 
into areas of the United States located outside of the 
catchment areas of medical treatment facilities of the 
uniformed services, but in which the managed care option is a 
cost-effective alternative because of--
            (1) the significant number of members of the 
        uniformed services and covered beneficiaries under 
        chapter 55 of title 10, United States Code (including 
        retired members of the Armed Forces and their 
        dependents), who reside in the areas; and
            (2) the presence in the areas of sufficient 
        nonmilitary health care provider networks.
    (b) Alternatives.--As an alternative to expansion of 
TRICARE Prime to areas of the United States in which there are 
few or no nonmilitary health care provider networks, the 
Secretary shall include in the plan required under subsection 
(a) an evaluation of the feasibility and cost-effectiveness of 
providing a member of the Armed Forces on active duty who is 
stationed in such an area, or whose dependents reside in such 
an area, with one or both of the following:
            (1) A monetary stipend to assist the member in 
        obtaining health care services for the member or the 
        member's dependents.
            (2) A reduction in the cost-sharing requirements 
        applicable to the TRICARE program options otherwise 
        available to the member to match the reduced cost-
        sharing responsibilities of the managed care option of 
        the TRICARE program.
    (c) Submission of Plan.--Not later than March 1, 1998, the 
Secretary shall submit to Congress the plan required under 
subsection (a).

          Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. IMPLEMENTATION OF DESIGNATED PROVIDER AGREEMENTS FOR 
                    UNIFORMED SERVICES TREATMENT FACILITIES.

    (a) Commencement of Health Care Services Under Agreement.--
Subsection (c) of section 722 of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201, 10 
U.S.C. 1073 note) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B);
            (2) by inserting ``(1)'' before ``Unless''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(2) The Secretary may modify the effective date 
established under paragraph (1) for an agreement to permit a 
transition period of not more than six months between the date 
on which the agreement is executed by the parties and the date 
on which the designated provider commences the delivery of 
health care services under the agreement.''.
    (b) Temporary Continuation of Existing Participation 
Agreements.--Subsection (d) of such section is amended by 
inserting before the period at the end the following: ``, 
including any transitional period provided by the Secretary 
under paragraph (2) of such subsection''.

SEC. 722. CONTINUED ACQUISITION OF REDUCED-COST DRUGS.

    Section 722 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is 
amended by adding at the end the following new subsection:
    ``(g) Continued Acquisition of Reduced-Cost Drugs.--A 
designated provider shall be treated as part of the Department 
of Defense for purposes of section 8126 of title 38, United 
States Code, in connection with the provision by the designated 
provider of health care services to covered beneficiaries 
pursuant to the participation agreement of the designated 
provider under section 718(c) of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 42 
U.S.C. 248c note) or pursuant to the agreement entered into 
under subsection (b).''.

SEC. 723. LIMITATION ON TOTAL PAYMENTS.

    Section 726(b) of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) 
is amended by adding at the end the following new sentence: 
``In establishing the ceiling rate for enrollees with the 
designated providers who are also eligible for the Civilian 
Health and Medical Program of the Uniformed Services, the 
Secretary of Defense shall take into account the health status 
of the enrollees.''.

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

SEC. 731. IMPROVEMENTS IN HEALTH CARE COVERAGE AND ACCESS FOR MEMBERS 
                    ASSIGNED TO CERTAIN DUTY LOCATIONS FAR FROM SOURCES 
                    OF CARE.

    (a) Supplemental Care Program.--(1) Section 1074(c) of 
title 10, United States Code, is amended--
            (A) by inserting ``(1)'' after ``(c)''; and
            (B) by adding at the end the following new 
        paragraphs:
    ``(2)(A) Subject to such exceptions as the Secretary of 
Defense considers necessary, coverage for medical care for 
members of the armed forces under this subsection, and 
standards with respect to timely access to such care, shall be 
comparable to coverage for medical care and standards for 
timely access to such care under the managed care option of the 
TRICARE program known as TRICARE Prime.
    ``(B) The Secretary of Defense shall enter into 
arrangements with contractors under the TRICARE program or with 
other appropriate contractors for the timely and efficient 
processing of claims under this subsection.
    ``(3)(A) The Secretary of Defense may not require a member 
of the armed forces described in subparagraph (B) to receive 
routine primary medical care at a military medical treatment 
facility.
    ``(B) A member referred to in subparagraph (A) is a member 
of the armed forces on active duty who is entitled to medical 
care under this subsection and who--
            ``(i) receives a duty assignment described in 
        subparagraph (C); and
            ``(ii) pursuant to the assignment of such duty, 
        resides at a location that is more than 50 miles, or 
        approximately one hour of driving time, from the 
        nearest military medical treatment facility adequate to 
        provide the needed care.
    ``(C) A duty assignment referred to in subparagraph (B) 
means any of the following:
            ``(i) Permanent duty as a recruiter.
            ``(ii) Permanent duty at an educational institution 
        to instruct, administer a program of instruction, or 
        provide administrative services in support of a program 
        of instruction for the Reserve Officers' Training 
        Corps.
            ``(iii) Permanent duty as a full-time adviser to a 
        unit of a reserve component.
            ``(iv) Any other permanent duty designated by the 
        Secretary concerned for purposes of this paragraph.''.
    (2) The amendments made by paragraph (1) shall apply with 
respect to coverage of medical care for, and the provision of 
such care to, a member of the Armed Forces under section 
1074(c) of title 10, United States Code, on and after the later 
of the following:
            (A) April 1, 1998.
            (B) The date on which the TRICARE program is in 
        place in the service area of the member.
    (b) Temporary Authority for Managed Care Expansion to 
Members on Active Duty at Certain Remote Locations.--(1) A 
member of the Armed Forces described in subsection (c) is 
entitled to receive care under the Civilian Health and Medical 
Program of the Uniformed Services. In connection with such 
care, the Secretary of Defense shall waive the obligation of 
the member to pay a deductible, copayment, or annual fee that 
would otherwise be applicable under that program for care 
provided to the members under the program.
    (2) A member who is entitled under paragraph (1) to receive 
health care services under CHAMPUS shall receive such care from 
a network provider under the TRICARE program if such a provider 
is available in the service area of the member.
    (3) Paragraph (1) shall take effect on the date of the 
enactment of this Act and shall expire with respect to a member 
upon the later of the following:
            (A) The date that is one year after the date of the 
        enactment of this Act.
            (B) The date on which the amendments made by 
        subsection (a) apply with respect to the coverage of 
        medical care for, and provision of such care to, the 
        member.
    (c) Eligible Members.--A member referred to in subsection 
(b) is a member of the Armed Forces on active duty who--
            (1) receives a duty assignment described in 
        subsection (d); and
            (2) pursuant to the assignment of such duty, 
        resides at a location that is more than 50 miles, or 
        approximately one hour of driving time, from--
                    (A) the nearest health care facility of the 
                uniformed services adequate to provide the 
                needed care under chapter 55 of title 10, 
                United States Code; and
                    (B) the nearest source of the needed care 
                that is available to the member under the 
                TRICARE Prime plan.
    (d) Duty Assignments Covered.--A duty assignment referred 
to in subsection (c)(1) means any of the following:
            (1) Permanent duty as a recruiter.
            (2) Permanent duty at an educational institution to 
        instruct, administer a program of instruction, or 
        provide administrative services in support of a program 
        of instruction for the Reserve Officers' Training 
        Corps.
            (3) Permanent duty as a full-time adviser to a unit 
        of a reserve component of the Armed Forces.
            (4) Any other permanent duty designated by the 
        Secretary concerned for purposes of this subsection.
    (e) Payment of Costs.--Deductibles, copayments, and annual 
fees not payable by a member by reason of a waiver granted 
under the regulations prescribed pursuant to subsection (b) 
shall be paid out of funds available to the Department of 
Defense for the Defense Health Program.
    (f) Definitions.--In this section:
            (1) The term ``TRICARE program'' has the meaning 
        given that term in section 1072(7) of title 10, United 
        States Code.
            (2) The term ``TRICARE Prime plan'' means a plan 
        under the TRICARE program that provides for the 
        voluntary enrollment of persons for the receipt of 
        health care services to be furnished in a manner 
        similar to the manner in which health care services are 
        furnished by health maintenance organizations.

SEC. 732. WAIVER OR REDUCTION OF COPAYMENTS UNDER OVERSEAS DENTAL 
                    PROGRAM.

    Section 1076a(h) of title 10, United States Code, is 
amended--
            (1) in the first sentence, by striking out 
        ``Secretary'' and inserting in lieu thereof ``Secretary 
        of Defense''; and
            (2) by adding at the end the following new 
        sentence: ``In the case of such an overseas dental 
        plan, the Secretary may waive or reduce the copayments 
        otherwise required by subsection (e) to the extent the 
        Secretary determines appropriate for the effective and 
        efficient operation of the plan.''.

SEC. 733. PREMIUM COLLECTION REQUIREMENTS FOR MEDICAL AND DENTAL 
                    INSURANCE PROGRAMS; EXTENSION OF DEADLINE FOR 
                    IMPLEMENTATION OF DENTAL INSURANCE PROGRAM FOR 
                    MILITARY RETIREES.

    (a) Premium Collection for Selected Reserve Dental 
Insurance.--Paragraph (3) of section 1076b(b) of title 10, 
United States Code, is amended to read as follows:
    ``(3) The Secretary of Defense shall establish procedures 
for the collection of the member's share of the premium for 
coverage by the dental insurance plan. To the maximum extent 
practicable, a member's share shall be deducted and withheld 
from the basic pay payable to the member for inactive duty 
training or basic pay payable to the member for active duty (if 
pay is available to the member). Such share shall be used to 
pay the premium for coverage by the dental insurance plan.''.
    (b) Premium Collection for Retiree Dental Insurance Plan.--
Paragraph (2) of section 1076c(c) of such title is amended to 
read as follows:
    ``(2) The Secretary of Defense shall establish procedures 
for the collection of the premiums charged for coverage by the 
dental insurance plan. To the maximum extent practicable, the 
premiums payable by a member entitled to retired pay shall be 
deducted and withheld from the retired pay of the member (if 
pay is available to the member).''.
    (c) Report to Congress.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report on the 
premium collection procedures established pursuant to paragraph 
(3) of section 1076b(b) of title 10, United States Code, and 
paragraph (2) of section 1076c(c) of such title. The report 
shall describe the extent to which premium collections are made 
under such paragraphs through deductions and withholding from 
pay.
    (d) Limitation on Implementation of Alternative Collection 
Procedures.--The Secretary of Defense may not implement 
procedures for collecting premiums under section 1076b(b)(3) of 
title 10, United States Code, or section 1076c(c)(2) of such 
title other than by deductions and withholding from pay until 
120 days after the date that the Secretary submits a report to 
Congress describing the justifications for implementing such 
alternative procedures.
    (e) Extension of Deadline for Implementation of Dental 
Insurance Plan for Military Retirees.--Section 703(b) of the 
National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 104-201; 110 Stat. 2590) is amended by striking ``October 
1, 1997'' and inserting ``April 1, 1998''.

SEC. 734. DENTAL INSURANCE PLAN COVERAGE FOR RETIREES OF THE PUBLIC 
                    HEALTH SERVICE AND NOAA.

    (a) Eligibility.--(1) Subsection (a) of section 1076c of 
title 10, United States Code, is amended by striking out 
``military retirees'' and inserting in lieu thereof ``retirees 
of the uniformed services''.
    (2) Subsection (b)(1) of such section is amended by 
striking out ``Armed Forces'' and inserting in lieu thereof 
``uniformed services''.
    (b) Officials Responsible.--(1) Subsection (a) of such 
section (as amended by subsection (a)) is further amended by 
inserting ``, in consultation with the other administering 
Secretaries,'' after ``Secretary of Defense''.
    (2) Subsection (h) of such section is amended by striking 
out ``Secretary of Transportation'' and inserting in lieu 
thereof ``other administering Secretaries''.

SEC. 735. CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT RATES FOR 
                    SERVICES.

    (a) Conformity Between Rates.--Section 1079(h) of title 10, 
United States Code, is amended by striking out paragraphs (1), 
(2), and (3) and inserting in lieu thereof the following new 
paragraph:
    ``(1) Except as provided in paragraphs (2) and (3), payment 
for a charge for services by an individual health care 
professional (or other noninstitutional health care provider) 
for which a claim is submitted under a plan contracted for 
under subsection (a) shall be equal to an amount determined to 
be appropriate, to the extent practicable, in accordance with 
the same reimbursement rules as apply to payments for similar 
services under title XVIII of the Social Security Act (42 
U.S.C. 1395 et seq.). The Secretary of Defense shall determine 
the appropriate payment amount under this paragraph in 
consultation with the other administering Secretaries.''.
    (b) Reduced Rates Authorized.--Paragraph (5) of such 
section is amended by adding at the end the following new 
sentence: ``With the consent of the health care provider, the 
Secretary is also authorized to reduce the authorized payment 
for certain health care services below the amount otherwise 
required by the payment limitations under paragraph (1).''.
    (c) Conforming Amendments.--Such section is further 
amended--
            (1) in paragraph (5), by striking out ``paragraph 
        (4), the Secretary'' and inserting in lieu thereof 
        ``paragraph (2), the Secretary of Defense''; and
            (2) by redesignating paragraphs (4), (5), and (6) 
        as paragraphs (2), (3), and (4), respectively.

SEC. 736. USE OF PERSONAL SERVICES CONTRACTS FOR PROVISION OF HEALTH 
                    CARE SERVICES AND LEGAL PROTECTION FOR PROVIDERS.

    (a) Use of Contracts Outside Medical Treatment 
Facilities.--Section 1091(a) of title 10, United States Code, 
is amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The Secretary of Defense, and the Secretary of 
Transportation with respect to the Coast Guard when it is not 
operating as a service in the Navy, may also enter into 
personal services contracts to carry out other health care 
responsibilities of the Secretary (such as the provision of 
medical screening examinations at Military Entrance Processing 
Stations) at locations outside medical treatment facilities, as 
determined necessary pursuant to regulations prescribed by the 
Secretary. The Secretary may not enter into a contract under 
this paragraph after the end of the one-year period beginning 
on the date of the enactment of this paragraph.''.
    (b) Defense of Suits.--Section 1089 of such title is 
amended--
            (1) in subsection (a), by adding at the end the 
        following new sentence: ``This subsection shall also 
        apply if the physician, dentist, nurse, pharmacist, or 
        paramedical or other supporting personnel (or the 
        estate of such person) involved is serving under a 
        personal services contract entered into under section 
        1091 of this title.''; and
            (2) in subsection (f)--
                    (A) by inserting ``(1)'' after ``(f)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) With respect to the Secretary of Defense and the 
Armed Forces Retirement Home Board, the authority provided by 
paragraph (1) also includes the authority to provide for 
reasonable attorney's fees for persons described in subsection 
(a), as determined necessary pursuant to regulations prescribed 
by the head of the agency concerned.''.
    (c) Report.--Not later than March 31, 1998, the Secretary 
of Defense shall submit to Congress a report on the feasible 
alternative means for performing the medical screening 
examinations that are routinely performed at Military Entrance 
Processing Stations. The report shall contain a discussion of 
the feasibility and cost of the use of--
            (1) the TRICARE system for the performance of the 
        examinations; and
            (2) each other alternative identified in the 
        report.

SEC. 737. PORTABILITY OF STATE LICENSES FOR DEPARTMENT OF DEFENSE 
                    HEALTH CARE PROFESSIONALS.

    Section 1094 of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection 
        (e); and
            (2) by inserting after subsection (c) the following 
        new subsection:
    ``(d)(1) Notwithstanding any law regarding the licensure of 
health care providers, a health-care professional described in 
paragraph (2) may practice the health profession or professions 
of the health-care professional in any State, the District of 
Columbia, or a Commonwealth, territory, or possession of the 
United States, regardless of whether the practice occurs in a 
health care facility of the Department of Defense, a civilian 
facility affiliated with the Department of Defense, or any 
other location authorized by the Secretary of Defense .
    ``(2) A health-care professional referred to in paragraph 
(1) is a member of the armed forces who--
            ``(A) has a current license to practice medicine, 
        osteopathic medicine, dentistry, or another health 
        profession; and
            ``(B) is performing authorized duties for the 
        Department of Defense.''.

SEC. 738. STANDARD FORM AND REQUIREMENTS REGARDING CLAIMS FOR PAYMENT 
                    FOR SERVICES.

    (a) Clarification of Existing Requirements.--Section 1106 
of title 10, United States Code, is amended to read as follows:

``Sec. 1106. Submittal of claims: standard form; time limits

    ``(a) Standard Form.--The Secretary of Defense, after 
consultation with the other administering Secretaries, shall 
prescribe by regulation a standard form for the submission of 
claims for the payment of health care services provided under 
this chapter.
    ``(b) Time for Submission.--A claim for payment for 
services provided under this chapter shall be submitted as 
provided in such regulations not later than one year after the 
services are provided.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 55 of title 10, United States Code, is 
amended by striking out the item relating to section 1106 and 
inserting in lieu thereof the following new item:

``1106. Submittal of claims: standard form; time limits.''.

SEC. 739. CHIROPRACTIC HEALTH CARE DEMONSTRATION PROGRAM.

    (a) Two-Year Extension.--Subsection (b) of section 731 of 
the National Defense Authorization Act for Fiscal Year 1995 
(Public Law 103-337; 10 U.S.C. 1092 note) is amended by 
striking out ``1997'' and inserting in lieu thereof ``1999''.
    (b) Expansion to at Least Three Additional Treatment 
Facilities.--Subsection (a)(2)(A) of such section is amended by 
striking out ``not less than 10'' and inserting in lieu thereof 
``the National Naval Medical Center, the Walter Reed Army 
Medical Center, and not less than 11 other''.
    (c) Reports.--Subsection (c) of such section is amended--
            (1) by striking paragraph (3); and
            (2) by adding at the end the following new 
        paragraphs:
    ``(3) Not later than January 30, 1998, the Secretary of 
Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report that identifies the additional 
treatment facilities designated to furnish chiropractic care 
under the program that were not so designated before the report 
required by paragraph (1) was prepared, together with the plan 
for the conduct of the program at the additional treatment 
facilities.
    ``(4) Not later than May 1, 1998, the Secretary of Defense 
shall modify the plan for evaluating the program submitted 
pursuant to paragraph (2) in order to provide for the 
evaluation of the program at all of the designated treatment 
facilities under the program, including the treatment 
facilities referred to in paragraph (3).
    ``(5) Not later than May 1, 2000, the Secretary shall 
submit to the committees referred to in paragraph (3) a final 
report in accordance with the plan submitted pursuant to 
paragraph (2).''.

                       Subtitle E--Other Matters

SEC. 741. CONTINUED ADMISSION OF CIVILIANS AS STUDENTS IN PHYSICIAN 
                    ASSISTANT TRAINING PROGRAM OF ARMY MEDICAL 
                    DEPARTMENT.

    (a) Civilian Attendance.--(1) Chapter 407 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 4416. Academy of Health Sciences: admission of civilians in 
                    physician assistant training program

    ``(a) In General.--The Secretary of the Army may, pursuant 
to an agreement entered into with an accredited institution of 
higher education--
            ``(1) permit students of the institution to attend 
        the didactic portion of the physician assistant 
        training program conducted by the Army Medical 
        Department at the Academy of Health Sciences at Fort 
        Sam Houston, Texas; and
            ``(2) accept from the institution academic services 
        to support the physician assistant training program at 
        the Academy.
    ``(b) Agreement for Exchange of Services.--An agreement 
entered into with an institution of higher education under this 
section shall require the institution, in exchange for services 
provided under paragraph (1) of subsection (a), to provide 
academic services described in paragraph (2) of such subsection 
that the Secretary and authorized representatives of the 
institution consider appropriate.
    ``(c) Selection of Students.--In consultation with the 
authorized representatives of the institution of higher 
education concerned, the Secretary shall prescribe the 
qualifications and methods of selection for students of the 
institution to receive instruction at the Academy under this 
section. The qualifications shall be comparable to those 
generally required for admission to the physician assistant 
training program at the Academy.
    ``(d) Rules of Attendance.--Except as the Secretary 
determines necessary, a student who receives instruction at the 
Academy under this section shall be subject to the same 
regulations governing attendance, discipline, discharge, and 
dismissal as apply to other persons attending the Academy.
    ``(e) Limitations.--The Secretary shall ensure the 
following:
            ``(1) That the Army Medical Department, in carrying 
        out an agreement under this section, does not incur 
        costs in excess of the costs that the department would 
        incur to obtain, by means other than the agreement, 
        academic services that are comparable to those provided 
        by the institution pursuant to the agreement.
            ``(2) That attendance of civilian students at the 
        Academy under this section does not cause a decrease in 
        the number of members of the armed forces enrolled in 
        the physician assistant training program at the 
        Academy.
    ``(f) Annual Report.--(1) Each year, the Secretary shall 
submit to Congress a report on the exchange of services under 
this section during the year. The report shall contain the 
following:
            ``(A) The number of civilian students who receive 
        instruction at the Academy under this section.
            ``(B) An assessment of the benefits derived by the 
        United States.
    ``(2) Reports are required under paragraph (1) only for 
years during which an agreement is in effect under this 
section.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``4416. Academy of Health Sciences: admission of civilians in physician 
          assistant training program.''.

    (b) Effect on Existing Demonstration Program.--An agreement 
entered into under the demonstration program for the admission 
of civilians as physician assistant students at the Academy of 
Health Sciences, Fort Sam Houston, Texas, established pursuant 
to section 732 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2810) shall be 
treated as an agreement entered into under section 4416 of 
title 10, United States Code (as added by subsection (a)). The 
agreement may be extended in such manner and for such period as 
the parties to the agreement consider appropriate consistent 
with section 4416.

SEC. 742. PAYMENT FOR EMERGENCY HEALTH CARE OVERSEAS FOR MILITARY AND 
                    CIVILIAN PERSONNEL OF THE ON-SITE INSPECTION 
                    AGENCY.

    (a) Payment of Costs.--The Secretary of Defense may pay the 
costs of any emergency health care that--
            (1) is needed by a member of the Armed Forces, 
        civilian employee of the Department of Defense, or 
        civilian employee of a contractor operating under a 
        contract with the Department of Defense while the 
        member or employee is performing temporary or permanent 
        duty with the On-Site Inspection Agency outside the 
        United States; and
            (2) is furnished to such person during fiscal year 
        1998 by a source outside the United States.
    (b) Funding.--Funds authorized to be appropriated for the 
expenses of the On-Site Inspection Agency for fiscal year 1998 
by this Act shall be available to cover payments for emergency 
health care provided under subsection (a).

SEC. 743. AUTHORITY FOR AGREEMENT FOR USE OF MEDICAL RESOURCE FACILITY, 
                    ALAMOGORDO, NEW MEXICO.

    (a) Authority.--(1) The Secretary of the Air Force may 
enter into an agreement with Gerald Champion Hospital, 
Alamogordo, New Mexico, under which the Secretary may furnish 
health care services to eligible individuals in a medical 
resource facility in Alamogordo, New Mexico, that is 
constructed and equipped, in part, using funds provided by the 
Secretary under the agreement.
    (2) For purposes of this section:
            (A) The term ``eligible individual'' means any 
        individual eligible for medical and dental care under 
        chapter 55 of title 10, United States Code, including 
        any member of the uniformed services entitled to such 
        care under section 1074(a) of that title.
            (B) The terms ``medical resource facility'' and 
        ``facility'' mean the medical resource facility to be 
        constructed and equipped pursuant to the agreement 
        authorized by paragraph (1).
            (C) The term ``Hospital'' means Gerald Champion 
        Hospital, Alamogordo, New Mexico.
    (b) Content of Agreement.--Any agreement entered into under 
subsection (a) shall specify, at a minimum, the following:
            (1) The relationship between the Hospital and the 
        Secretary of the Air Force in the provision of health 
        care services to eligible individuals in the medical 
        resource facility, including--
                    (A) whether or not the Secretary and the 
                Hospital are to use and administer the facility 
                jointly or independently; and
                    (B) under what circumstances the Hospital 
                is to act as a provider of health care services 
                under the managed care option of the TRICARE 
                program known as TRICARE Prime.
            (2) Matters relating to the administration of the 
        agreement, including--
                    (A) the duration of the agreement;
                    (B) the rights and obligations of the 
                Secretary and the Hospital under the agreement, 
                including any contracting or grievance 
                procedures applicable under the agreement;
                    (C) the types of care to be provided to 
                eligible individuals under the agreement, 
                including the cost to the Department of the Air 
                Force of providing the care to eligible 
                individuals during the term of the agreement;
                    (D) the access of Air Force medical 
                personnel to the facility under the agreement;
                    (E) the rights and responsibilities of the 
                Secretary and the Hospital upon termination of 
                the agreement; and
                    (F) any other matters jointly identified by 
                the Secretary and the Hospital.
            (3) The nature of the arrangement between the 
        Secretary and the Hospital with respect to the 
        ownership of the facility and any property under the 
        agreement, including--
                    (A) the nature of that arrangement while 
                the agreement is in force;
                    (B) the nature of that arrangement upon 
                termination of the agreement; and
                    (C) any requirement for reimbursement of 
                the Secretary by the Hospital as a result of 
                the arrangement upon termination of the 
                agreement.
            (4) The amount of the funds made available under 
        subsection (c) that the Secretary will contribute for 
        the construction and equipping of the facility.
            (5) Any conditions or restrictions relating to the 
        construction, equipping, or use of the facility.
    (c) Availability of Funds for Construction and Equipping of 
Facility.--(1) Of the amount authorized to be appropriated 
pursuant to section 301(4) for operation and maintenance for 
the Air Force, not more than $7,000,000 may be used by the 
Secretary of the Air Force to make a contribution toward the 
construction and equipping of the medical resource facility in 
the event that the Secretary enters into the agreement 
authorized by subsection (a). Notwithstanding any other 
provision of law, the Secretary may not use other sources of 
funds to make a contribution toward the construction or 
equipping of the facility.
    (2) Notwithstanding subsection (b)(3) regarding the 
ownership and reimbursement issues to be addressed in the 
agreement authorized by subsection (a), the Secretary may not 
contribute funds made available under paragraph (1) toward the 
construction and equipping of the facility unless the agreement 
requires, in exchange for the contribution, that the Hospital 
provide health care services to eligible individuals without 
charge to the Secretary or at a reduced rate. The value of the 
services provided by the Hospital shall be at least equal to 
the amount of the contribution made by the Secretary, and the 
Hospital shall complete the provision of services equal in 
value to the Secretary's contribution within seven years after 
the facility becomes operational. The provision of additional 
discounted services to be provided by the Hospital shall be 
included in the agreement. The value and types of services to 
be provided by the Hospital shall be negotiated in accordance 
with principles of resource-sharing agreements under the 
TRICARE program.
    (d) Notice and Wait.--The Secretary of the Air Force may 
not enter into the agreement authorized by subsection (a) until 
90 days after the Secretary of Defense submits to the 
congressional defense committees the report required by 
subsection (e).
    (e) Report on Proposed Agreement.--The Secretary of Defense 
shall submit to Congress a report containing an analysis of, 
and recommendations regarding, the agreement proposed to be 
entered into under subsection (a), in particular, the 
implications of the agreement on regional health care costs and 
its effect on implementation of the TRICARE program in the 
region. The report shall also include a copy of the agreement, 
the results of a cost-benefit analysis conducted by the 
Secretary of the Air Force with respect to the agreement, and 
such other information with respect to the agreement as the 
Secretary of Defense and the Secretary of the Air Force 
considers appropriate. The cost-benefit analysis shall consider 
the effects of the agreement on operation and maintenance and 
military construction requirements at Holloman Air Force Base, 
New Mexico.
    (f) Subsequent Reports.--If the Secretary of the Air Force 
enters into the agreement authorized by subsection (a), the 
Secretary shall submit to Congress an annual report containing 
a revised cost-benefit analysis of the consequences of the 
agreement as in effect during the year covered by the report, 
including a full accounting of any cost savings realized by the 
Department of the Air Force as a result of the agreement. A 
report shall be submitted for each year in which the agreement 
is in effect or until the Hospital provides the full value of 
health care services required under subsection (c)(2), 
whichever occurs first.

SEC. 744. DISCLOSURES OF CAUTIONARY INFORMATION ON PRESCRIPTION 
                    MEDICATIONS.

    (a) Regulations Required.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense, in consultation with the administering Secretaries 
referred to in section 1073 of title 10, United States Code, 
shall prescribe regulations to require each source described in 
subsection (d) that dispenses a prescription medication to a 
beneficiary under chapter 55 of such title to include with the 
medication the written cautionary information required by 
subsection (b).
    (b) Information To Be Disclosed.--Information required to 
be disclosed about a medication under the regulations shall 
include appropriate cautions about usage of the medication, 
including possible side effects and potentially hazardous 
interactions with foods.
    (c) Form of Information.--The regulations shall require 
that information be furnished in a form that, to the maximum 
extent practicable, is easily read and understood.
    (d) Covered Sources.--The regulations shall apply to the 
following:
            (1) Pharmacies and any other dispensers of 
        prescription medications in medical facilities of the 
        uniformed services.
            (2) Sources of prescription medications under any 
        mail order pharmaceuticals program provided by any of 
        the administering Secretaries under chapter 55 of title 
        10, United States Code.
            (3) Pharmacies paid under the Civilian Health and 
        Medical Program of the Uniformed Services (including 
        the TRICARE program).
            (4) Pharmacies, and any other pharmaceutical 
        dispensers, of designated providers referred to in 
        section 721(5) of the National Defense Authorization 
        Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
        2593; 10 U.S.C. 1073 note).

SEC. 745. COMPETITIVE PROCUREMENT OF CERTAIN OPHTHALMIC SERVICES.

    (a) Competitive Procurement Required.--Beginning not later 
than October 1, 1998, the Secretary of Defense shall 
competitively procure from private-sector sources, or other 
sources outside of the Department of Defense, all ophthalmic 
services related to the provision of single vision and 
multivision eyeware for members of the Armed Forces, retired 
members, and certain covered beneficiaries under chapter 55 of 
title 10, United States Code, who would otherwise receive such 
ophthalmic services through the Department of Defense.
    (b) Exception.--Subsection (a) shall not apply to the 
extent that the Secretary of Defense determines that the use of 
sources within the Department of Defense to provide such 
ophthalmic services--
            (1) is necessary to meet the readiness requirements 
        of the Armed Forces; or
            (2) is more cost effective.
    (c) Completion of Existing Orders.--Subsection (a) shall 
not apply to orders for ophthalmic services received on or 
before September 30, 1998.

SEC. 746. COMPTROLLER GENERAL STUDY OF ADEQUACY AND EFFECT OF MAXIMUM 
                    ALLOWABLE CHARGES FOR PHYSICIANS UNDER CHAMPUS.

    (a) Study Required.--The Comptroller General shall conduct 
a study regarding the adequacy of the maximum allowable charges 
for physicians established under the Civilian Health and 
Medical Program of the Uniformed Services (CHAMPUS) and the 
effect of such charges on the participation of physicians in 
CHAMPUS. The study shall include an evaluation of the 
following:
            (1) The methodology used by the Secretary of 
        Defense to establish maximum allowable charges for 
        physicians under CHAMPUS, and whether such methodology 
        conforms to the requirements of section 1079(h) of 
        title 10, United States Code.
            (2) The differences between the established charges 
        under CHAMPUS and reimbursement rates for similar 
        services under title XVIII of the Social Security Act 
        and other health care programs.
            (3) The basis for physician complaints that the 
        CHAMPUS established charges are too low.
            (4) The difficultly of CHAMPUS in ensuring 
        physician compliance with the CHAMPUS established 
        charges in the absence of legal mechanisms to enforce 
        compliance, and the effect of noncompliance on patient 
        out-of-pocket expenses.
            (5) The effect of the established charges under 
        CHAMPUS on the participation of physicians in CHAMPUS, 
        and the extent and success of Department of Defense 
        efforts to increase physician participation in areas 
        with low participation rates.
    (b) Submission of Report.--Not later than March 1, 1998, 
the Comptroller General shall submit to Congress a report 
containing the results of the study required by subsection (a).

SEC. 747. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE PHARMACY 
                    PROGRAMS.

    (a) Study.--Not later than March 31, 1998, the Comptroller 
General shall submit to Congress a study evaluating the 
pharmacy programs of the Department of Defense. The study shall 
examine the impact of such pharmacy programs on the aggregate 
cost, quality, and accessibility of health care provided to 
covered beneficiaries under chapter 55 of title 10, United 
States Code, and shall include an examination of the following:
            (1) The merits and feasibility of establishing a 
        uniform formulary for military treatment facility 
        pharmacies and civilian contractor pharmacy benefit 
        administrators.
            (2) The reasons that military treatment facilities 
        deny covered beneficiaries access to pharmacy care and 
        shift such beneficiaries to other sources of pharmacy 
        care.
            (3) The merits and feasibility of using private 
        sector cost control mechanisms implemented by 
        authorized civilian contractors in the Department of 
        Defense medical programs, and the existence of any 
        barriers to the use of such mechanisms, including 
        factors that may undermine the incentives of such 
        contractors to optimize treatment outcomes in managing 
        the care of covered beneficiaries without exceeding 
        budgeted resources.
            (4) The cost impacts, if any, of the use of 
        commercial managed care methods of furnishing 
        pharmaceuticals to covered beneficiaries by TRICARE 
        program contractors instead of procuring 
        pharmaceuticals at discounted prices pursuant to 
        section 8126 of title 38, United States Code.
            (5) The existence of options for increasing the 
        discounts available to TRICARE program contractors 
        without undermining controls for preventing diversion 
        of items procured by the Department of Defense to 
        nonmilitary populations.
    (b) Response to Study.--Not later than 90 days after the 
Comptroller General submits to Congress the study required by 
subsection (a), the Secretary of Defense shall submit to 
Congress a report on the feasibility and advisability of 
implementing changes to the pharmacy programs of the Department 
of Defense based on the findings and conclusions of the study.

SEC. 748. COMPTROLLER GENERAL STUDY OF NAVY GRADUATE MEDICAL EDUCATION 
                    PROGRAM.

    (a) Study Required.--The Comptroller General shall conduct 
a study to evaluate the validity of the recommendations made by 
the Medical Education Policy Council of the Bureau of Medicine 
and Surgery of the Navy regarding restructuring the graduate 
medical education program of the Department of the Navy. The 
study shall specifically address the Council's recommendations 
relating to residency training conducted at Naval Medical 
Center, Portsmouth, Virginia, and National Naval Medical 
Center, Bethesda, Maryland.
    (b) Submission of Report.--Not later than March 1, 1998, 
the Comptroller General shall submit to Congress and the 
Secretary of the Navy a report containing the results of the 
study required by subsection (a).
    (c) Moratorium on Restructuring.--Until the report required 
by subsection (b) is submitted to Congress, the Secretary of 
the Navy may not make any change in the types of residency 
programs conducted under the Navy graduate medical education 
program or the locations at which such residency programs are 
conducted or otherwise restructure the Navy graduate medical 
education program.

SEC. 749. STUDY OF EXPANSION OF PHARMACEUTICALS BY MAIL PROGRAM TO 
                    INCLUDE ADDITIONAL MEDICARE-ELIGIBLE COVERED 
                    BENEFICIARIES.

    Not later than six months after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress 
a report regarding the feasibility and advisability of 
expanding the category of persons eligible to participate in 
the demonstration project for the purchase of prescription 
pharmaceuticals by mail, as required by section 702(a) of the 
National Defense Authorization Act for Fiscal Year 1993 (Public 
Law 102-484; 10 U.S.C. 1079 note), to include persons referred 
to in subsection (c) of section 1086 of title 10, United States 
Code, who are covered by subsection (d)(1) of such section and 
reside in the United States outside of the catchment area of a 
medical treatment facility of the uniformed services.

SEC. 750. COMPTROLLER GENERAL STUDY OF REQUIREMENT FOR MILITARY MEDICAL 
                    FACILITIES IN NATIONAL CAPITAL REGION.

    (a) Study Required.--The Comptroller General shall conduct 
a study to evaluate the requirements for Army, Navy, and Air 
Force medical facilities in the National Capital Region (as 
defined in section 2674(f)(2) of title 10, United States Code). 
The study shall--
            (1) specifically address requirements with respect 
        to geography, facilities, integrated residencies, and 
        medical environments; and
            (2) provide specific recommendations with respect 
        to how medical and health care provided by these 
        facilities may be better coordinated to more 
        efficiently serve, throughout the National Capital 
        Region, members of the Armed Forces on active duty and 
        covered beneficiaries under chapter 55 of title 10, 
        United States Code.
    (b) Submission of Report.--Not later than six months after 
the date of the enactment of this Act, the Comptroller General 
shall submit to Congress and the Secretary of Defense a report 
containing the results of the study required by subsection (a).

SEC. 751. REPORT ON POLICIES AND PROGRAMS TO PROMOTE HEALTHY LIFESTYLES 
                    FOR MEMBERS OF THE ARMED FORCES AND THEIR 
                    DEPENDENTS.

    (a) Report.--Not later than March 30, 1998, the Secretary 
of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives a report on the effectiveness of the 
policies and programs of the Department of Defense intended to 
promote healthy lifestyles for members of the Armed Forces and 
their dependents.
    (b) Policies and Programs To Be Assessed.--The report under 
subsection (a) shall include an assessment of the effectiveness 
of the following:
            (1) Programs intended to educate members of the 
        Armed Forces and their dependents about the potential 
        health consequences of the use of alcohol and tobacco.
            (2) Policies of the commissaries, post exchanges, 
        and service clubs, and for entertainment activities of 
        the Department of Defense, relating to the sale and use 
        of alcohol and tobacco.
            (3) Programs intended to provide support to members 
        of the Armed Forces and their dependents who choose to 
        reduce or eliminate their use of alcohol or tobacco.
            (4) Any other policies or programs intended to 
        promote healthy lifestyles for members of the Armed 
        Forces and their dependents.

SEC. 752. SENSE OF CONGRESS REGARDING QUALITY HEALTH CARE FOR RETIREES.

    (a) Findings.--Congress makes the following findings:
            (1) Many retired military personnel believe that 
        they were promised lifetime health care in exchange for 
        20 or more years of service.
            (2) Military retirees are the only Federal 
        Government personnel who have been prevented from using 
        their employer-provided health care at or after 65 
        years of age.
            (3) Military health care has become increasingly 
        difficult to obtain for military retirees as the 
        Department of Defense reduces its health care 
        infrastructure.
            (4) Military retirees deserve to have a health care 
        program that is at least comparable with that of 
        retirees from civilian employment by the Federal 
        Government.
            (5) The availability of quality, lifetime health 
        care is a critical recruiting incentive for the Armed 
        Forces.
            (6) Quality health care is a critical aspect of the 
        quality of life of the men and women serving in the 
        Armed Forces.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the United States has incurred a moral 
        obligation to provide health care to members and former 
        members of the Armed Forces who are entitled to retired 
        or retainer pay (or its equivalent);
            (2) it is, therefore, necessary to provide quality, 
        affordable health care to such retirees; and
            (3) Congress and the President should take steps to 
        address the problems associated with the availability 
        of health care for such retirees within two years after 
        the date of the enactment of this Act.

                    Subtitle F--Persian Gulf Illness

SEC. 761. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``Gulf War illness'' means any one of 
        the complex of illnesses and symptoms that might have 
        been contracted by members of the Armed Forces as a 
        result of service in the Southwest Asia theater of 
        operations during the Persian Gulf War.
            (2) The term ``Persian Gulf War'' has the meaning 
        given that term in section 101 of title 38, United 
        States Code.
            (3) The term ``Persian Gulf veteran'' means an 
        individual who served on active duty in the Armed 
        Forces in the Southwest Asia theater of operations 
        during the Persian Gulf War.
            (4) The term ``contingency operation'' has the 
        meaning given that term in section 101(a) of title 10, 
        United States Code, and includes a humanitarian 
        operation, peacekeeping operation, or similar 
        operation.

SEC. 762. PLAN FOR HEALTH CARE SERVICES FOR PERSIAN GULF VETERANS.

    (a) Plan Required.--The Secretary of Defense and the 
Secretary of Veterans Affairs, acting jointly, shall prepare a 
plan to provide appropriate health care to Persian Gulf 
veterans (and dependents eligible by law) who suffer from a 
Gulf War illness.
    (b) Contents of Plan.--In preparing the plan, the 
Secretaries shall--
            (1) use the presumptions of service connection and 
        illness specified in paragraphs (1) and (2) of section 
        721(d) of the National Defense Authorization Act for 
        Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 1074 
        note) to determine the Persian Gulf veterans (and 
        dependents eligible by law) who should be covered by 
        the plan;
            (2) consider the need and methods available to 
        provide health care services to Persian Gulf veterans 
        who are no longer on active duty in the Armed Forces, 
        such as Persian Gulf veterans who are members of the 
        reserve components and Persian Gulf veterans who have 
        been separated from the Armed Forces; and
            (3) estimate the costs to the Government of 
        providing full or partial health care services under 
        the plan to covered Persian Gulf veterans (and covered 
        dependents eligible by law).
    (c) Follow-up Treatment.--The plan required by subsection 
(a) shall specifically address the measures to be used to 
monitor the quality, appropriateness, and effectiveness of, and 
patient satisfaction with, health care services provided to 
Persian Gulf veterans after their initial medical examination 
as part of registration in the Persian Gulf War Veterans Health 
Registry or the Comprehensive Clinical Evaluation Program.
    (d) Submission of Plan.--Not later than March 1, 1998, the 
Secretaries shall submit to Congress the plan required by 
subsection (a).

SEC. 763. COMPTROLLER GENERAL STUDY OF REVISED DISABILITY CRITERIA FOR 
                    PHYSICAL EVALUATION BOARDS.

    Not later than March 1, 1998, the Comptroller General shall 
submit to Congress a study evaluating the revisions made by the 
Secretary of Defense (as required by section 721(e) of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 10 U.S.C. 1074 note)) to the Physical Evaluation 
Board criteria used to set disability ratings for members of 
the Armed Forces who are no longer medically qualified for 
continuation on active duty so as to ensure accurate disability 
ratings related to a diagnosis of a Gulf War illness.

SEC. 764. MEDICAL CARE FOR CERTAIN RESERVES WHO SERVED IN SOUTHWEST 
                    ASIA DURING THE PERSIAN GULF WAR.

    (a) In General.--Chapter 55 of title 10, United States 
Code, is amended by inserting after section 1074d the following 
new section:

``Sec. 1074e. Medical care: certain Reserves who served in Southwest 
                    Asia during the Persian Gulf Conflict

    ``(a) Entitlement to Medical Care.--A member of the armed 
forces described in subsection (b) is entitled to medical care 
for a qualifying Persian Gulf symptom or illness to the same 
extent and under the same conditions (other than the 
requirement that the member be on active duty) as a member of a 
uniformed service who is entitled to such care under section 
1074(a) of this title.
    ``(b) Covered Members.--Subsection (a) applies to a member 
of a reserve component who--
            ``(1) is a Persian Gulf veteran;
            ``(2) has a qualifying Persian Gulf symptom or 
        illness; and
            ``(3) is not otherwise entitled to medical care for 
        such symptom or illness under this chapter and is not 
        otherwise eligible for hospital care and medical 
        services for such symptom or illness under section 1710 
        of title 38.
    ``(c) Definitions.--In this section:
            ``(1) The term `Persian Gulf veteran' means a 
        member of the armed forces who served on active duty in 
        the Southwest Asia theater of operations during the 
        Persian Gulf Conflict.
            ``(2) The term `qualifying Persian Gulf symptom or 
        illness' means, with respect to a member described in 
        subsection (b), a symptom or illness--
                    ``(A) that the member registered before 
                September 1, 1997, in the Comprehensive 
                Clinical Evaluation Program of the Department 
                of Defense and that is presumed under section 
                721(d) of the National Defense Authorization 
                Act for Fiscal Year 1995 (10 U.S.C. 1074 note) 
                to be a result of service in the Southwest Asia 
                theater of operations during the Persian Gulf 
                Conflict; or
                    ``(B) that the member registered before 
                September 1, 1997, in the Persian Gulf War 
                Veterans Health Registry maintained by the 
                Department of Veterans Affairs pursuant to 
                section 702 of the Persian Gulf War Veterans' 
                Health Status Act (38 U.S.C. 527 note).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 1074d the following new item:

``1074e. Medical care: certain Reserves who served in Southwest Asia 
          during the Persian Gulf Conflict.''.

SEC. 765. IMPROVED MEDICAL TRACKING SYSTEM FOR MEMBERS DEPLOYED 
                    OVERSEAS IN CONTINGENCY OR COMBAT OPERATIONS.

    (a) System Required.--(1) Chapter 55 of title 10, United 
States Code, is amended by inserting after section 1074e (as 
added by section 764) the following new section:

``Sec. 1074f. Medical tracking system for members deployed overseas

    ``(a) System Required.--The Secretary of Defense shall 
establish a system to assess the medical condition of members 
of the armed forces (including members of the reserve 
components) who are deployed outside the United States or its 
territories or possessions as part of a contingency operation 
(including a humanitarian operation, peacekeeping operation, or 
similar operation) or combat operation.
    ``(b) Elements of System.--The system described in 
subsection (a) shall include the use of predeployment medical 
examinations and postdeployment medical examinations (including 
an assessment of mental health and the drawing of blood 
samples) to accurately record the medical condition of members 
before their deployment and any changes in their medical 
condition during the course of their deployment. The 
postdeployment examination shall be conducted when the member 
is redeployed or otherwise leaves an area in which the system 
is in operation (or as soon as possible thereafter).
    ``(c) Recordkeeping.--The results of all medical 
examinations conducted under the system, records of all health 
care services (including immunizations) received by members 
described in subsection (a) in anticipation of their deployment 
or during the course of their deployment, and records of events 
occurring in the deployment area that may affect the health of 
such members shall be retained and maintained in a centralized 
location to improve future access to the records.
    ``(d) Quality Assurance.--The Secretary of Defense shall 
establish a quality assurance program to evaluate the success 
of the system in ensuring that members described in subsection 
(a) receive predeployment medical examinations and 
postdeployment medical examinations and that the recordkeeping 
requirements with respect to the system are met.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
1074e (as added by section 764) the following new item:

``1074f. Medical tracking system for members deployed overseas.''.

    (b) Report.--Not later than March 1, 1998, the Secretary of 
Defense shall submit to Congress an analysis of the 
administrative implications of establishing and administering 
the medical tracking system required by section 1074f of 
title10, United States Code, as added by subsection (a). The report 
shall include, for fiscal year 1999 and the 5 successive fiscal years, 
a separate analysis and specification of the projected costs and 
operational considerations for each of the following required aspects 
of the system:
            (1) Predeployment medical examinations.
            (2) Postdeployment medical examinations.
            (3) Recordkeeping.

SEC. 766. NOTICE OF USE OF INVESTIGATIONAL NEW DRUGS OR DRUGS 
                    UNAPPROVED FOR THEIR APPLIED USE.

    (a) Notice Requirements.--Chapter 55 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 1107. Notice of use of an investigational new drug or a drug 
                    unapproved for its applied use

    ``(a) Notice Required.--(1) Whenever the Secretary of 
Defense requests or requires a member of the armed forces to 
receive an investigational new drug or a drug unapproved for 
its applied use, the Secretary shall provide the member with 
notice containing the information specified in subsection (d).
    ``(2) The Secretary shall also ensure that health care 
providers who administer an investigational new drug or a drug 
unapproved for its applied use, or who are likely to treat 
members who receive such a drug, receive the information 
required to be provided under paragraphs (3) and (4) of 
subsection (d).
    ``(b) Time of Notice.--The notice required to be provided 
to a member under subsection (a)(1) shall be provided before 
the investigational new drug or drug unapproved for its applied 
use is first administered to the member, if practicable, but in 
no case later than 30 days after the drug is first administered 
to the member.
    ``(c) Form of Notice.--The notice required under subsection 
(a)(1) shall be provided in writing unless the Secretary of 
Defense determines that the use of written notice is 
impractical because of the number of members receiving the 
investigational new drug or drug unapproved for its applied 
use, time constraints, or similar reasons. If the Secretary 
provides notice under subsection (a)(1) in a form other than in 
writing, the Secretary shall submit to Congress a report 
describing the notification method used and the reasons for the 
use of the alternative method.
    ``(d) Content of Notice.--The notice required under 
subsection (a)(1) shall include the following:
            ``(1) Clear notice that the drug being administered 
        is an investigational new drug or a drug unapproved for 
        its applied use.
            ``(2) The reasons why the investigational new drug 
        or drug unapproved for its applied use is being 
        administered.
            ``(3) Information regarding the possible side 
        effects of the investigational new drug or drug 
        unapproved for its applied use, including any known 
        side effects possible as a result of the interaction of 
        such drug with other drugs or treatments being 
        administered to the members receiving such drug.
            ``(4) Such other information that, as a condition 
        of authorizing the use of the investigational new drug 
        or drug unapproved for its applied use, the Secretary 
        of Health and Human Services may require to be 
        disclosed.
    ``(e) Records of Use.--The Secretary of Defense shall 
ensure that the medical records of members accurately 
document--
            ``(1) the receipt by members of any investigational 
        new drug or drug unapproved for its applied use; and
            ``(2) the notice required by subsection (a)(1).
    ``(f) Definitions.--In this section:
            ``(1) The term `investigational new drug' means a 
        drug covered by section 505(i) of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 355(i)).
            ``(2) The term `drug unapproved for its applied 
        use' means a drug administered for a use not described 
        in the approved labeling of the drug under section 505 
        of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
        355).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``1107. Notice of use of an investigational new drug or a drug 
          unapproved for its applied use.''.

SEC. 767. REPORT ON PLANS TO TRACK LOCATION OF MEMBERS IN A THEATER OF 
                    OPERATIONS.

    Not later than March 1, 1998, the Secretary of Defense 
shall submit to Congress a report containing a plan for 
collecting and maintaining information regarding the daily 
location of units of the Armed Forces, and to the extent 
practicable individual members of such units, serving in a 
theater of operations during a contingency operation or combat 
operation.

SEC. 768. SENSE OF CONGRESS REGARDING THE DEPLOYMENT OF SPECIALIZED 
                    UNITS FOR DETECTING AND MONITORING CHEMICAL, 
                    BIOLOGICAL, AND SIMILAR HAZARDS IN A THEATER OF 
                    OPERATIONS.

    It is the sense of Congress that the Secretary of Defense, 
in conjunction with the Chairman of the Joint Chiefs of Staff, 
should take such actions as are necessary to ensure that the 
units of the Armed Forces deployed in the theater of operations 
for each contingency operation or combat operation include 
specialized units with sufficient capability (including 
personnel with the appropriate training and expertise, and the 
appropriate equipment) to detect and monitor the presence of 
chemical, biological, and similar hazards to which members of 
the Armed Forces could be exposed in that theater during the 
operation.

SEC. 769. REPORT ON EFFECTIVENESS OF RESEARCH EFFORTS REGARDING GULF 
                    WAR ILLNESSES.

    Not later than March 1, 1998, the Secretary of Defense 
shall submit to Congress a report evaluating the effectiveness 
of medical research initiatives regarding Gulf War illnesses. 
The report shall address the following:
            (1) The type and effectiveness of previous research 
        efforts, including the activities undertaken pursuant 
        to section 743 of the National Defense Authorization 
        Act for Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 
        1074 note), section 722 of the National Defense 
        Authorization Act for Fiscal Year 1995 (Public Law 103-
        337; 10 U.S.C. 1074 note), and sections 270 and 271 of 
        the National Defense Authorization Act for Fiscal Year 
        1994 (Public Law 103-160; 107 Stat. 1613).
            (2) Recommendations regarding additional research 
        regarding Gulf War illnesses, including research 
        regarding the nature and causes of Gulf War illnesses 
        and appropriate treatments for such illnesses.
            (3) The adequacy of Federal funding and the need 
        for additional funding for medical research initiatives 
        regarding Gulf War illnesses.

SEC. 770. PERSIAN GULF ILLNESS CLINICAL TRIALS PROGRAM.

    (a) Findings.--Congress finds the following:
            (1) There are many ongoing studies that investigate 
        risk factors which may be associated with the health 
        problems experienced by Persian Gulf veterans; however, 
        there have been no studies that examine health outcomes 
        and the effectiveness of the treatment received by such 
        veterans.
            (2) The medical literature and testimony presented 
        in hearings on Gulf War illnesses indicate that there 
        are therapies, such as cognitive behavioral therapy, 
        that have been effective in treating patients with 
        symptoms similar to those seen in many Persian Gulf 
        veterans.
    (b) Establishment of Program.--The Secretary of Defense and 
the Secretary of Veterans Affairs, acting jointly, shall 
establish a program of cooperative clinical trials at multiple 
sites to assess the effectiveness of protocols for treating 
Persian Gulf veterans who suffer from ill-defined or 
undiagnosed conditions. Such protocols shall include a 
multidisciplinary treatment model, of which cognitive 
behavioral therapy is a component.
    (c) Funding.--Of the funds authorized to be appropriated in 
section 201(1) for research, development, test, and evaluation 
for the Army, the sum of $4,500,000 shall be available for 
program element 62787A (medical technology) in the budget of 
the Department of Defense for fiscal year 1998 to carry out the 
clinical trials program established pursuant to subsection (b).

SEC. 771. SENSE OF CONGRESS CONCERNING GULF WAR ILLNESS.

    (a) Findings.--Congress makes the following findings:
            (1) Americans served in the Persian Gulf Conflict 
        of 1991 in defense of vital national security interests 
        of the United States.
            (2) It was known to United States intelligence and 
        military commanders that biological and chemical agents 
        were in theater throughout the conflict.
            (3) An undetermined amount of these agents were 
        released into theater.
            (4) A large number of United States military 
        veterans and allied veterans who served in the 
        Southwest Asia theater of operations have been stricken 
        with a variety of severe illnesses.
            (5) Previous efforts to discern the causes of those 
        illnesses have been inadequate, and those illnesses are 
        affecting the health of both veterans and their 
        families.
    (b) Sense of Congress.--It is the sense of Congress that 
all promising technology and treatments relating to Gulf War 
illnesses should be fully explored and tested to facilitate 
treatment for members of the Armed Forces and veterans who 
served the United States in the Persian Gulf conflict and are 
stricken with unexplainable illness.

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

 Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

Sec. 801. Expansion of authority to enter into contracts crossing fiscal 
          years to all severable service contracts not exceeding a year.
Sec. 802. Vesting of title in the United States under contracts paid 
          under progress payment arrangements or similar arrangements.
Sec. 803. Restriction on undefinitized contract actions.
Sec. 804. Limitation and report on payment of restructuring costs under 
          defense contracts.
Sec. 805. Increased price limitation on purchases of right-hand drive 
          vehicles.
Sec. 806. Multiyear procurement contracts.
Sec. 807. Audit of procurement of military clothing and clothing-related 
          items by military installations in the United States.
Sec. 808. Limitation on allowability of compensation for certain 
          contractor personnel.
Sec. 809. Elimination of certification requirement for grants.
Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
Sec. 811. Item-by-item and country-by-country waivers of domestic source 
          limitations.

               Subtitle B--Acquisition Assistance Programs

Sec. 821. One-year extension of pilot mentor-protege program.
Sec. 822. Test program for negotiation of comprehensive subcontracting 
          plans.

                  Subtitle C--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
          litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Unit cost reports.
Sec. 834. Plan for providing contracting information to general public 
          and small businesses.
Sec. 835. Two-year extension of crediting of certain purchases toward 
          meeting subcontracting goals.

                        Subtitle D--Other Matters

Sec. 841. Repeal of certain acquisition requirements and reports.
Sec. 842. Use of major range and test facility installations by 
          commercial entities.
Sec. 843. Requirement to develop and maintain list of firms not eligible 
          for defense contracts.
Sec. 844. Sense of Congress regarding allowability of costs of employee 
          stock ownership plans.
Sec. 845. Expansion of personnel eligible to participate in 
          demonstration project relating to acquisition workforce.
Sec. 846. Time for submission of annual report relating to Buy American 
          Act.
Sec. 847. Repeal of requirement for contractor guarantees on major 
          weapon systems.
Sec. 848. Requirements relating to micro-purchases.
Sec. 849. Promotion rate for officers in an acquisition corps.
Sec. 850. Use of electronic commerce in Federal procurement.
Sec. 851. Conformance of policy on performance based management of 
          civilian acquisition programs with policy established for 
          defense acquisition programs.
Sec. 852. Modification of process requirements for the solutions-based 
          contracting pilot program.
Sec. 853. Guidance and standards for defense acquisition workforce 
          training requirements.
Sec. 854. Study and report to Congress assessing dependence on foreign 
          sources for resistors and capacitors.
Sec. 855. Department of Defense and Federal Prison Industries joint 
          study.

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

SEC. 801. EXPANSION OF AUTHORITY TO ENTER INTO CONTRACTS CROSSING 
                    FISCAL YEARS TO ALL SEVERABLE SERVICE CONTRACTS NOT 
                    EXCEEDING A YEAR.

    (a) Expanded Authority.--Section 2410a of title 10, United 
States Code, is amended to read as follows:

``Sec. 2410a. Severable service contracts for periods crossing fiscal 
                    years

    ``(a) Authority.--The Secretary of Defense, the Secretary 
of a military department, or the Secretary of Transportation 
with respect to the Coast Guard when it is not operating as a 
service in the Navy, may enter into a contract for procurement 
of severable services for a period that begins in one fiscal 
year and ends in the next fiscal year if (without regard to any 
option to extend the period of the contract) the contract 
period does not exceed one year.
    ``(b) Obligation of Funds.--Funds made available for a 
fiscal year may be obligated for the total amount of a contract 
entered into under the authority of subsection (a).''.
    (b) Clerical Amendment.--The item relating to such section 
in the table of sections at the beginning of chapter 141 of 
such title is amended to read as follows:

``2410a. Severable service contracts for periods crossing fiscal 
          years.''.

SEC. 802. VESTING OF TITLE IN THE UNITED STATES UNDER CONTRACTS PAID 
                    UNDER PROGRESS PAYMENT ARRANGEMENTS OR SIMILAR 
                    ARRANGEMENTS.

    Section 2307 of title 10, United States Code, is amended--
            (1) by redesignating subsection (h) as subsection 
        (i); and
            (2) by inserting after subsection (g) the following 
        new subsection (h):
    ``(h) Vesting of Title in the United States.--If a contract 
paid by a method authorized under subsection (a)(1) provides 
for title to property to vest in the United States, the title 
to the property shall vest in accordance with the terms of the 
contract, regardless of any security interest in the property 
that is asserted before or after the contract is entered 
into.''.

SEC. 803. RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.

    (a) Applicability of Waiver Authority to Humanitarian or 
Peacekeeping Operations.--Section 2326(b)(4) of title 10, 
United States Code, is amended to read as follows:
    ``(4) The head of an agency may waive the provisions of 
this subsection with respect to a contract of that agency if 
that head of an agency determines that the waiver is necessary 
in order to support any of the following operations:
            ``(A) A contingency operation.
            ``(B) A humanitarian or peacekeeping operation.''.
    (b) Humanitarian or Peacekeeping Operation Defined.--
Section 2302(7) of such title is amended--
            (1) by striking out ``(7)(A)'' and inserting in 
        lieu thereof ``(7)''; and
            (2) by striking out ``(B) In subparagraph (A), 
        the'' and inserting in lieu thereof ``(8) The''.

SEC. 804. LIMITATION AND REPORT ON PAYMENT OF RESTRUCTURING COSTS UNDER 
                    DEFENSE CONTRACTS.

    (a) In General.--(1) Chapter 137 of title 10, United States 
Code, is amended by inserting after section 2324 the following 
new section:

``Sec. 2325. Restructuring costs

    ``(a) Limitation on Payment of Restructuring Costs.--(1) 
The Secretary of Defense may not pay, under section 2324 of 
this title, a defense contractor for restructuring costs 
associated with a business combination of the contractor unless 
the Secretary determines in writing either--
            ``(A) that the amount of projected savings for the 
        Department of Defense associated with the restructuring 
        will be at least twice the amount of the costs allowed; 
        or
            ``(B) that the amount of projected savings for the 
        Department of Defense associated with the restructuring 
        will exceed the amount of the costs allowed and that 
        the business combination will result in the 
        preservation of a critical capability that otherwise 
        might be lost to the Department.
    ``(2) The Secretary may not delegate the authority to make 
a determination under paragraph (1) to an official of the 
Department of Defense below the level of an Assistant Secretary 
of Defense.
    ``(b) Report.--Not later than March 1 in each of 1998, 
1999, 2000, 2001, and 2002, the Secretary of Defense shall 
submit to Congress a report that contains, with respect to 
business combinations occurring on or after August 15, 1994, 
the following:
            ``(1) For each defense contractor to which the 
        Secretary has paid, under section 2324 of this title, 
        restructuring costs associated with a business 
        combination, a summary of the following:
                    ``(A) An estimate of the amount of savings 
                for the Department of Defense associated with 
                the restructuring that has been realized as of 
                the end of the preceding calendar year.
                    ``(B) An estimate of the amount of savings 
                for the Department of Defense associated with 
                the restructuring that is expected to be 
                achieved on defense contracts.
            ``(2) An identification of any business combination 
        for which the Secretary has paid restructuring costs 
        under section 2324 of this title during the preceding 
        calendar year and, for each such business combination--
                    ``(A) the supporting rationale for allowing 
                such costs;
                    ``(B) factual information associated with 
                the determination made under subsection (a) 
                with respect to such costs; and
                    ``(C) a discussion of whether the business 
                combination would have proceeded without the 
                payment of restructuring costs by the 
                Secretary.
            ``(3) For business combinations of major defense 
        contractors that took place during the year preceding 
        the year of the report--
                    ``(A) an assessment of any potentially 
                adverse effects that the business combinations 
                could have on competition for Department of 
                Defense contracts (including potential 
                horizontal effects, vertical effects, and 
                organizational conflicts of interest), the 
                national technology and industrial base, or 
                innovation in the defense industry; and
                    ``(B) the actions taken to mitigate the 
                potentially adverse effects.
    ``(c) Definition.--In this section, the term `business 
combination' includes a merger or acquisition.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2324 
the following new item:

``2325. Restructuring costs.''.

    (b) GAO Reports.--(1) Not later than April 1, 1998, the 
Comptroller General shall--
            (A) in consultation with appropriate officials in 
        the Department of Defense--
                    (i) identify major market areas affected by 
                business combinations of defense contractors 
                since January 1, 1990; and
                    (ii) develop a methodology for determining 
                the savings from business combinations of 
                defense contractors on the prices paid on 
                particular defense contracts; and
            (B) submit to the congressional defense committees 
        a report describing, for each major market area 
        identified pursuant to subparagraph (A)(i), the changes 
        in numbers of businesses competing for major defense 
        contracts since January 1, 1990.
    (2) Not later than December 1, 1998, the Comptroller 
General shall submit to the congressional defense committees a 
report containing the following:
            (A) Updated information on--
                    (i) restructuring costs of business 
                combinations paid by the Department of Defense 
                pursuant to certifications under section 818 of 
                the National Defense Authorization Act for 
                Fiscal Year 1995, and
                    (ii) savings realized by the Department of 
                Defense as a result of the business 
                combinations for which the payment of 
                restructuring costs was so certified.
            (B) An assessment of the savings from business 
        combinations of defense contractors on the prices paid 
        on a meaningful sample of defense contracts, determined 
        in accordance with the methodology developed pursuant 
        to paragraph (1)(A)(ii), as well as a description of 
        the methodology.
            (C) Any recommendations that the Comptroller 
        General considers appropriate.
    (3) In this subsection, the term ``business combination'' 
has the meaning given that term in section 2325(c) of title 10, 
United States Code, as added by subsection (a).
    (c) Effective Date.--Section 2325(a) of title 10, United 
States Code, as added by subsection (a), shall apply with 
respect to business combinations that occur after the date of 
the enactment of this Act.
    (d) Repeal of Superseded Provisions.--Subsections (a) and 
(g)(3) of section 818 of the National Defense Authorization Act 
for Fiscal Year 1995 (10 U.S.C. 2324 note) are repealed.

SEC. 805. INCREASED PRICE LIMITATION ON PURCHASES OF RIGHT-HAND DRIVE 
                    VEHICLES.

    Section 2253(a)(2) of title 10, United States Code, is 
amended by striking out ``$12,000'' and inserting in lieu 
thereof ``$30,000''.

SEC. 806. MULTIYEAR PROCUREMENT CONTRACTS.

    (a) Requirement for Authorization by Law in Acts Other Than 
Appropriations Acts.--(1) Subsection (i) of section 2306b of 
title 10, United States Code, is amended by adding at the end 
the following new paragraph:
    ``(3) In the case of the Department of Defense, a multiyear 
contract in an amount equal to or greater than $500,000,000 may 
not be entered into for any fiscal year under this section 
unless the contract is specifically authorized by law in an Act 
other than an appropriations Act.''.
    (2) Paragraph (3) of section 2306b(i) of title 10, United 
States Code, as added by paragraph (1), shall not apply with 
respect to a contract authorized by law before the date of the 
enactment of this Act.
    (b) Codification of Annual Recurring Multiyear Procurement 
Requirements.--(1) Such section is further amended by adding at 
the end the following new subsection:
    ``(l) Various Additional Requirements With Respect to 
Multiyear Defense Contracts.--(1)(A) The head of an agency may 
not initiate a contract described in subparagraph (B) unless 
the congressional defense committees are notified of the 
proposed contract at least 30 days in advance of the award of 
the proposed contract.
    ``(B) Subparagraph (A) applies to the following contracts:
            ``(i) A multiyear contract--
                    ``(I) that employs economic order quantity 
                procurement in excess of $20,000,000 in any one 
                year of the contract; or
                    ``(II) that includes an unfunded contingent 
                liability in excess of $20,000,000.
            ``(ii) Any 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.
    ``(2) The head of an agency may not 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.
    ``(3) The head of an agency may not initiate a multiyear 
procurement contract for any system (or component thereof) if 
the value of the multiyear contract would exceed $500,000,000 
unless authority for the contract is specifically provided in 
an appropriations Act.
    ``(4) The head of an agency may not terminate a multiyear 
procurement contract until 10 days after the date on which 
notice of the proposed termination is provided to the 
congressional defense committees.
    ``(5) The execution of multiyear contracting authority 
shall require the use of a present value analysis to determine 
lowest cost compared to an annual procurement.
    ``(6) This subsection does not apply to the National 
Aeronautics and Space Administration or to the Coast Guard.
    ``(7) In this subsection, the term `congressional defense 
committees' means the following:
            ``(A) The Committee on Armed Services of the Senate 
        and the Subcommittee on Defense of the Committee on 
        Appropriations of the Senate.
            ``(B) The Committee on National Security of the 
        House of Representatives and the Subcommittee on 
        National Security of the Committee on Appropriations of 
        the House of Representatives.''.
    (2) The amendment made by paragraph (1) shall take effect 
on October 1, 1998.
    (c) Technical and Conforming Amendments.--Such section is 
further amended as follows:
            (1) Subsection (a) is amended--
                    (A) by striking out ``finds--'' in the 
                matter preceding paragraph (1) and inserting in 
                lieu thereof ``finds each of the following:'';
                    (B) by capitalizing the initial letter of 
                the first word in each of paragraphs (1) 
                through (6);
                    (C) by striking out the semicolon at the 
                end of paragraphs (1) through (4) and inserting 
                in lieu thereof a period; and
                    (D) by striking out ``; and'' at the end of 
                paragraph (5) and inserting in lieu thereof a 
                period.
            (2) Subsection (d)(1) is amended by striking out 
        ``paragraph (1)'' and inserting in lieu thereof 
        ``subsection (a)''.
            (3) Subsection (i)(1) is amended by striking 
        ``five-year'' and inserting in lieu thereof ``future-
        years''.

SEC. 807. AUDIT OF PROCUREMENT OF MILITARY CLOTHING AND CLOTHING-
                    RELATED ITEMS BY MILITARY INSTALLATIONS IN THE 
                    UNITED STATES.

    (a) Audit Requirement.--Not later than September 30, 1998, 
the Inspector General of the Department of Defense shall 
perform an audit of purchases of military clothing and 
clothing-related items in excess of the micro-purchase 
threshold by military installations during fiscal years 1996 
and 1997 to determine the extent to which such installations 
procured military clothing and clothing-related items in 
violation of the Buy American Act (41 U.S.C. 10a et seq.) 
during those fiscal years.
    (b) Installations To Be Audited.--The audit under 
subsection (a)--
            (1) shall include an audit of the procurement of 
        military clothing and clothing-related items by a 
        military installation of each of the Army, Navy, Air 
        Force, and Marine Corps; and
            (2) shall not cover procurements of clothing and 
        clothing-related items by the Defense Logistics Agency.
    (c) Definition.--The term ``micro-purchase threshold'' has 
the meaning provided by section 32(f) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 428(f)).
    (d) Report.--Not later than October 31, 1998, the Inspector 
General of the Department of Defense shall submit to Congress a 
report on the results of the audit performed under subsection 
(a).

SEC. 808. LIMITATION ON ALLOWABILITY OF COMPENSATION FOR CERTAIN 
                    CONTRACTOR PERSONNEL.

    (a) Certain Compensation Not Allowable as Costs Under 
Defense Contracts.--(1) Subsection (e)(1) of section 2324 of 
title 10, United States Code, is amended by adding at the end 
the following:
            ``(P) Costs of compensation of senior executives of 
        contractors for a fiscal year, regardless of the 
        contract funding source, to the extent that such 
        compensation exceeds the benchmark compensation amount 
        determined applicable for the fiscal year by the 
        Administrator for Federal Procurement Policy under 
        section 39 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 435).''.
    (2) Subsection (l) of such section is amended by adding at 
the end the following:
            ``(4) The term `compensation', for a year, means 
        the total amount of wages, salary, bonuses and deferred 
        compensation for the year, whether paid, earned, or 
        otherwise accruing, as recorded in an employer's cost 
        accounting records for the year.
            ``(5) The term `senior executive', with respect to 
        a contractor, means--
                    ``(A) the chief executive officer of the 
                contractor or any individual acting in a 
                similar capacity for the contractor;
                    ``(B) the four most highly compensated 
                employees in management positions of the 
                contractor other than the chief executive 
                officer; and
                    ``(C) in the case of a contractor that has 
                components which report directly to the 
                contractor's headquarters, the five most highly 
                compensated employees in management positions 
                at each such component.
            ``(6) The term `fiscal year' means a fiscal year 
        established by a contractor for accounting purposes.''.
    (b) Certain Compensation Not Allowable as Costs Under Non-
Defense Contracts.--(1) Subsection (e)(1) of section 306 of the 
Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 256) is amended by adding at the end the following:
            ``(P) Costs of compensation of senior executives of 
        contractors for a fiscal year, regardless of the 
        contract funding source, to the extent that such 
        compensation exceeds the benchmark compensation amount 
        determined applicable for the fiscal year by the 
        Administrator for Federal Procurement Policy under 
        section 39 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 435).''.
    (2) Such section is further amended by adding at the end 
the following:
    ``(m) Other Definitions.--In this section:
            ``(1) The term `compensation', for a fiscal year, 
        means the total amount of wages, salary, bonuses and 
        deferred compensation for the fiscal year, whether 
        paid, earned, or otherwise accruing, as recorded in an 
        employer's cost accounting records for the fiscal year.
            ``(2) The term `senior executive', with respect to 
        a contractor, means--
                    ``(A) the chief executive officer of the 
                contractor or any individual acting in a 
                similar capacity for the contractor;
                    ``(B) the four most highly compensated 
                employees in management positions of the 
                contractor other than the chief executive 
                officer; and
                    ``(C) in the case of a contractor that has 
                components which report directly to the 
                contractor's headquarters, the five most highly 
                compensated individuals in management positions 
                at each such component.
            ``(3) The term `fiscal year' means a fiscal year 
        established by a contractor for accounting purposes.''.
    (c) Levels of Compensation Not allowable.--(1) The Office 
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is 
amended by adding at the end the following:

``SEC. 39. LEVELS OF COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL NOT 
                    ALLOWABLE AS COSTS UNDER CERTAIN CONTRACTS.

    ``(a) Determination Required.--For purposes of section 
2324(e)(1)(P) of title 10, United States Code, and section 
306(e)(1)(P) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 256(e)(1)(P)), the 
Administrator shall review commercially available surveys of 
executive compensation and, on the basis of the results of the 
review, determine a benchmark compensation amount to apply for 
each fiscal year. In making determinations under this 
subsection the Administrator shall consult with the Director of 
the Defense Contract Audit Agency and such other officials of 
executive agencies as the Administrator considers appropriate.
    ``(b) Benchmark Compensation Amount.--The benchmark 
compensation amount applicable for a fiscal year is the median 
amount of the compensation provided for all senior executives 
of all benchmark corporations for the most recent year for 
which date is available at the time the determination under 
subsection (a) is made.
    ``(c) Definitions.--In this section:
            ``(1) The term `compensation', for a fiscal year, 
        means the total amount of wages, salary, bonuses and 
        deferred compensation for the fiscal year, whether 
        paid, earned, or otherwise accruing, as recorded in an 
        employer's cost accounting records for the fiscal year.
            ``(2) The term `senior executive', with respect to 
        a corporation, means--
                    ``(A) the chief executive officer of the 
                corporation or any individual acting in a 
                similar capacity for the corporation.
                    ``(B) the four most highly compensated 
                employees in management positions of the 
                corporation other than the chief executive 
                officer; and
                    ``(C) in the case of a corporation that has 
                components which report directly to the 
                corporate headquarters, the five most highly 
                compensated individuals in management positions 
                at each such component.
            ``(3) The term `benchmark corporation', with 
        respect to a fiscal year, means a publicly-owned United 
        States corporation that has annual sales in excess of 
        $50,000,000 for the fiscal year.
            ``(4) The term `publicly-owned United States 
        corporation' means a corporation organized under the 
        laws of a State of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, or a 
        possession of the United States the voting stock of 
        which is publicly traded.
            ``(5) The term `fiscal year' means a fiscal year 
        established by a contractor for accounting purposes.''.
    (2) The table of sections in section 1(b) of such Act is 
amended by adding at the end the following:

``Sec. 39. Levels of compensation of certain contractor personnel not 
          allowable as costs under certain contracts.''.

    (d) Regulations.--Regulations implementing the amendments 
made by this section shall be published in the Federal Register 
not later than the effective date of the amendments under 
subsection (e).
    (e) Effective Date.--The amendments made by this section 
shall--
            (1) take effect on the date that is 90 days after 
        the date of the enactment of this Act; and
            (2) apply with respect to costs of compensation 
        incurred after January 1, 1998, under covered contracts 
        entered into before, on, or after the date of the 
        enactment of this Act.
    (f) Exclusive Applicability.--Notwithstanding any other 
provision of law, no other limitation in law on the 
allowability of costs of compensation of senior executives 
under covered contracts shall apply to such costs of 
compensation incurred after January 1, 1998.
    (g) Definitions.--In this section:
            (1) The term ``covered contract'' has the meaning 
        given such term in section 2324(l) of title 10, United 
        States Code, and section 306(l) of the Federal Property 
        and Administrative Services Act of 1949 (41 U.S.C. 
        256(l)).
            (2) The terms ``compensation'' and ``senior 
        executive'' have the meanings given such terms in 
        section 2324(l) of title 10, United States Code, and 
        section 306(m) of the Federal Property and 
        Administrative Services Act of 1949.

SEC. 809. ELIMINATION OF CERTIFICATION REQUIREMENT FOR GRANTS.

    Section 5153 of the Drug-Free Workplace Act of 1988 (Public 
Law 100-690; 102 Stat. 4306; 41 U.S.C. 702) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking out ``has 
                certified to the granting agency that it will'' 
                and inserting in lieu thereof ``agrees to''; 
                and
                    (B) in paragraph (2), by striking out 
                ``certifies to the agency'' and inserting in 
                lieu thereof ``agrees''; and
            (2) in subsection (b)(1)--
                    (A) by striking out subparagraph (A);
                    (B) by redesignating subparagraphs (B) and 
                (C) as subparagraphs (A) and (B), respectively; 
                and
                    (C) in subparagraph (A), as so 
                redesignated, by striking out ``such 
                certification by failing to carry out''.

SEC. 810. REPEAL OF LIMITATION ON ADJUSTMENT OF SHIPBUILDING CONTRACTS.

    (a) Repeal.--(1) Section 2405 of title 10, United States 
Code, is repealed.
    (2) The table of sections at the beginning of chapter 141 
of such title is amended by striking out the item relating to 
section 2405.
    (b) Applicability.--(1) Except as provided in paragraph 
(2), the repeal made by subsection (a) shall be effective with 
respect to claims, requests for equitable adjustment, and 
demands for payment under shipbuilding contracts that have been 
or are submitted before, on, or after the date of the enactment 
of this Act.
    (2) Section 2405 of title 10, United States Code, as in 
effect immediately before the date of the enactment of this 
Act, shall continue to apply to a contractor's claim, request 
for equitable adjustment, or demand for payment under a 
shipbuilding contract that was submitted before such date if--
            (A) a contracting officer denied the claim, 
        request, or demand, and the period for appealing the 
        decision to a court or board under the Contract 
        Disputes Act of 1978 expired before such date;
            (B) a court or board of contract appeals 
        considering the claim, request, or demand (including 
        any appeal of a decision of a contracting officer to 
        deny the claim, request, or demand) denied or dismissed 
        the claim, request, or demand (or the appeal), and the 
        action of the court or board became final and 
        unappealable before such date; or
            (C) the contractor released or releases the claim, 
        request, or demand.

SEC. 811. ITEM-BY-ITEM AND COUNTRY-BY-COUNTRY WAIVERS OF DOMESTIC 
                    SOURCE LIMITATIONS.  

    (a) Item-by-Item and Country-by-Country Implementation of 
Certain Waiver Authority.--Section 2534 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(i) Implementation of Certain Waiver Authority.--(1) The 
Secretary of Defense may exercise the waiver authority 
described in paragraph (2) only if the waiver is made for a 
particular item listed in subsection (a) and for a particular 
foreign country.
    ``(2) This subsection applies to the waiver authority 
provided by subsection (d) on the basis of the applicability of 
paragraph (2) or (3) of that subsection.
    ``(3) The waiver authority described in paragraph (2) may 
not be delegated below the Under Secretary of Defense for 
Acquisition and Technology.
    ``(4) At least 15 days before the effective date of any 
waiver made under the waiver authority described in paragraph 
(2), the Secretary shall publish in the Federal Register and 
submit to the congressional defense committees a notice of the 
determination to exercise the waiver authority.
    ``(5) Any waiver made by the Secretary under the waiver 
authority described in paragraph (2) shall be in effect for a 
period not greater than one year, as determined by the 
Secretary.''.
    (b) Effective Date.--Subsection (i) of section 2534 of such 
title, as added by subsection (a), shall apply 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 (d) of such section 
        2534, on the basis of the applicability of paragraph 
        (2) or (3) of that subsection.

              Subtitle B--Acquisition Assistance Programs

SEC. 821. ONE-YEAR EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

    (a) One-Year Extension of Pilot Mentor-Protege Program.--
Section 831(j) of the National Defense Authorization Act for 
Fiscal Year 1991 (10 U.S.C. 2302 note) is amended--
            (1) in paragraph (1), by striking out ``1998'' and 
        inserting in lieu thereof ``1999'';
            (2) in paragraph (2), by striking out ``1999'' and 
        inserting in lieu thereof ``2000''; and
            (3) in paragraph (3), by striking out ``1999'' and 
        inserting in lieu thereof ``2000''.
    (b) Study on Implementation of Pilot Mentor-Protege 
Program.--(1) The Comptroller General shall conduct a study on 
the implementation of the Mentor-Protege Program established 
under section 831 of the National Defense Authorization Act for 
Fiscal Year 1991 (10 U.S.C. 2302 note) and the extent to which 
the program is achieving the purposes established under that 
section.
    (2) The study also shall include the following:
            (A) A review of the manner in which funds for the 
        program have been obligated.
            (B) An identification and assessment of the average 
        amount spent by the Department of Defense on individual 
        mentor-protege agreements and the correlation between 
        levels of funding and the business development of the 
        protege firms.
            (C) An evaluation of the effectiveness of the 
        incentives provided to mentor firms to participate in 
        the program.
            (D) An assessment of the success of the mentor-
        protege program in enhancing the business 
        competitiveness and financial independence of protege 
        firms.
    (3) The Comptroller General shall submit to the Committee 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the 
results of the study not later than March 31, 1998.

SEC. 822. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SUBCONTRACTING 
                    PLANS.

    (a) Content of Subcontracting Plans.--Subsection (b)(2) of 
section 834 of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 637 
note) is amended--
            (1) by striking out ``plan--'' and inserting in 
        lieu thereof ``plan of a contractor--'';
            (2) by striking out subparagraph (A);
            (3) by redesignating subparagraph (B) as 
        subparagraph (A) and by striking out the period at the 
        end of such subparagraph and inserting in lieu thereof 
        ``; and''; and
            (4) by adding at the end the following:
            ``(B) shall cover each Department of Defense 
        contract that is entered into by the contractor and 
        each subcontract that is entered into by the contractor 
        as the subcontractor under a Department of Defense 
        contract.''.
    (b) Extension of Program.--Subsection (e) of such section 
is amended by striking out ``September 30, 1998'' in the second 
sentence and inserting in lieu thereof ``September 30, 2000.''.

                 Subtitle C--Administrative Provisions

SEC. 831. RETENTION OF EXPIRED FUNDS DURING THE PENDENCY OF CONTRACT 
                    LITIGATION.

    (a) In General.--Chapter 141 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2410m. Retention of amounts collected from contractor during the 
                    pendency of contract dispute

    ``(a) Retention of Funds.--Notwithstanding sections 1552(a) 
and 3302(b) of title 31, any amount, including interest, 
collected from a contractor as a result of a claim made by a 
military department or Defense Agency under the Contract 
Disputes Act of 1978 (41 U.S.C. 601 et seq.), shall remain 
available in accordance with this section to pay--
            ``(1) any settlement of the claim by the parties;
            ``(2) any judgment rendered in the contractor's 
        favor on an appeal of the decision on that claim to the 
        Armed Services Board of Contract Appeals under section 
        7 of such Act (41 U.S.C. 606); or
            ``(3) any judgment rendered in the contractor's 
        favor in an action on that claim in a court of the 
        United States.
    ``(b) Period of Availability.--(1) The period of 
availability of an amount under subsection (a), in connection 
with a claim--
            ``(A) expires 180 days after the expiration of the 
        period for bringing an action on that claim in the 
        United States Court of Federal Claims under section 
        10(a) of the Contract Disputes Act of 1978 (41 U.S.C. 
        609(a)) if, within that 180-day period--
                    ``(i) no appeal on the claim is commenced 
                at the Armed Services Board of Contract Appeals 
                under section 7 of such Act; and
                    ``(ii) no action on the claim is commenced 
                in a court of the United States; or
            ``(B) if not expiring under subparagraph (A), 
        expires--
                    ``(i) in the case of a settlement of the 
                claim, 180 days after the date of the 
                settlement; or
                    ``(ii) in the case of a judgment rendered 
                on the claim in an appeal to the Armed Services 
                Board of Contract Appeals under section 7 of 
                the Contract Disputes Act of 1978 or an action 
                in a court of the United States, 180 days after 
                the date on which the judgment becomes final 
                and not appealable.
    ``(2) While available under this section, an amount may be 
obligated or expended only for a purpose described in 
subsection (a).
    ``(3) Upon the expiration of the period of availability of 
an amount under paragraph (1), the amount shall be covered into 
the Treasury as miscellaneous receipts.
    ``(c) Reporting Requirement.--Each year, the Under 
Secretary of Defense (Comptroller) shall submit to Congress a 
report on the amounts, if any, that are available for 
obligation pursuant to this section. The report shall include, 
at a minimum, the following:
            ``(1) The total amount available for obligation.
            ``(2) The total amount collected from contractors 
        during the year preceding the year in which the report 
        is submitted.
            ``(3) The total amount disbursed in such preceding 
        year and a description of the purpose for each 
        disbursement.
            ``(4) The total amount returned to the Treasury in 
        such preceding year.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 141 of title 10, United States Code, is 
amended by adding at the end the following new item:

``2410m. Retention of amounts collected from contractor during the 
          pendency of contract dispute.''.

SEC. 832. PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

    Section 2371 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(i) Protection of Certain Information From Disclosure.--
(1) Disclosure of information described in paragraph (2) is not 
required, and may not be compelled, under section 552 of title 
5 for five years after the date on which the information is 
received by the Department of Defense.
    ``(2)(A) Paragraph (1) applies to information described in 
subparagraph (B) that is in the records of the Department of 
Defense if the information was submitted to the Department in a 
competitive or noncompetitive process having the potential for 
resulting in an award, to the party submitting the information, 
of a cooperative agreement that includes a clause described in 
subsection (d) or another transaction authorized by subsection 
(a).
    ``(B) The information referred to in subparagraph (A) is 
the following:
            ``(i) A proposal, proposal abstract, and supporting 
        documents.
            ``(ii) A business plan submitted on a confidential 
        basis.
            ``(iii) Technical information submitted on a 
        confidential basis.''.

SEC. 833. UNIT COST REPORTS.

    (a) Immediate Report Required Only for Previously 
Unreported Increased Costs.--Subsection (c) of section 2433 of 
title 10, United States Code, is amended by striking out 
``during the current fiscal year (other than the last quarterly 
unit cost report under subsection (b) for the preceding fiscal 
year)'' in the matter following paragraph (3).
    (b) Immediate Report Not Required for Cost Variances or 
Schedule Variances of Major Contracts.--Subsection (c) of such 
section is further amended--
            (1) by inserting ``or'' at the end of paragraph 
        (1);
            (2) by striking out ``or'' at the end of paragraph 
        (2); and
            (3) by striking out paragraph (3).
    (c) Congressional Notification of Increased Cost Not 
Conditioned on Discovery Since Beginning of Fiscal Year.--
Subsection (d)(3) of such section is amended by striking out 
``(for the first time since the beginning of the current fiscal 
year)'' in the first sentence.

SEC. 834. PLAN FOR PROVIDING CONTRACTING INFORMATION TO GENERAL PUBLIC 
                    AND SMALL BUSINESSES.

    (a) Requirement for Plan.--The Secretary of Defense shall 
develop a plan for improving the responsiveness of the 
Department of Defense to persons from the general public and 
small businesses seeking information on how to pursue 
contracting and technology development opportunities with the 
department. The plan shall include an assessment and 
recommendation on the designation of a central point of contact 
in the department to provide such information.
    (b) Submission.--Not later than March 31, 1998, the 
Secretary shall submit the plan developed under subsection (a) 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives.

SEC. 835. TWO-YEAR EXTENSION OF CREDITING OF CERTAIN PURCHASES TOWARD 
                    MEETING SUBCONTRACTING GOALS.

    Section 2410d(c) of title 10, United States Code, is 
amended, effective as of September 30, 1997, by striking out 
``September 30, 1997'' and inserting in lieu thereof 
``September 30, 1999''.

                       Subtitle D--Other Matters

SEC. 841. REPEAL OF CERTAIN ACQUISITION REQUIREMENTS AND REPORTS

    (a) Repeal of Reporting Requirement for Nonmajor 
Acquisition Programs.--Section 2220(b) of title 10, United 
States Code, is amended by striking out ``and nonmajor'' in the 
first sentence.
    (b) Repeal of Additional Approval Requirement Under 
Competition Exception for International Agreements.--Section 
2304(f)(2)(E) of title 10, United States Code, is amended by 
striking out ``and such document is approved by the competition 
advocate for the procuring activity''.
    (c) Content of Limited Selected Acquisition Reports.--
Section 2432(h)(2) of title 10, United States Code, is 
amended--
            (1) by striking out subparagraph (D); and
            (2) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (D) and (E), respectively.
    (d) Repeal of Report Relating to Procurement Regulations.--
Section 25 of the Office of Federal Procurement Policy Act (41 
U.S.C. 421) is amended by striking out subsection (g).

SEC. 842. USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS BY 
                    COMMERCIAL ENTITIES.

    (a) Extension of Authority.--Subsection (g) of section 2681 
of title 10, United States Code, is amended by striking out 
``1998'' and inserting in lieu thereof ``2002''.
    (b) Revised Reporting Requirement.--Subsection (h) of such 
section is amended to read as follows:
    ``(h) Report.--Not later than March 1, 1998, the Secretary 
of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives a report identifying existing and proposed 
procedures to ensure that the use of Major Range and Test 
Facility Installations by commercial entities does not compete 
with private sector test and evaluation services.''.

SEC. 843. REQUIREMENT TO DEVELOP AND MAINTAIN LIST OF FIRMS NOT 
                    ELIGIBLE FOR DEFENSE CONTRACTS.

    Section 2327 of title 10, United States Code, is amended--
            (1) by redesignating subsections (d) and (e) as 
        subsections (f) and (g), respectively; and
            (2) by inserting after subsection (c) the following 
        new subsections:
    ``(d) List of Firms Subject to Prohibition.--(1) The 
Secretary of Defense shall develop and maintain a list of all 
firms and subsidiaries of firms that the Secretary has 
identified as being subject to the prohibition in subsection 
(b).
    ``(2)(A) A person may request the Secretary to include on 
the list maintained under paragraph (1) any firm or subsidiary 
of a firm that the person believes to be owned or controlled by 
a foreign government described in subsection (b)(2). Upon 
receipt of such a request, the Secretary shall determine 
whether the conditions in paragraphs (1) and (2) of subsection 
(b) exist in the case of that firm or subsidiary. If the 
Secretary determines that such conditions do exist, the 
Secretary shall include the firm or subsidiary on the list.
    ``(B) A firm or subsidiary of a firm included on the list 
may request the Secretary to remove such firm or subsidiary 
from the list on the basis that it has been erroneously 
included on the list or its ownership circumstances have 
significantly changed. Upon receipt of such a request, the 
Secretary shall determine whether the conditions in paragraphs 
(1) and (2) of subsection (b) exist in the case of that firm or 
subsidiary. If the Secretary determines that such conditions do 
not exist, the Secretary shall remove the firm or subsidiary 
from the list.
    ``(C) The Secretary shall establish procedures to carry out 
this paragraph.
    ``(3) The head of an agency shall prohibit each firm or 
subsidiary of a firm awarded a contract by the agency from 
entering into a subcontract under that contract in an amount in 
excess of $25,000 with a firm or subsidiary included on the 
list maintained under paragraph (1) unless there is a 
compelling reason to do so. In the case of any subcontract 
requiring consent by the head of an agency, the head of the 
agency shall not consent to the award of the subcontract to a 
firm or subsidiary included on such list unless there is a 
compelling reason for such approval.
    ``(e) Distribution of List.--The Administrator of General 
Services shall ensure that the list developed and maintained 
under subsection (d) is made available to Federal agencies and 
the public in the same manner and to the same extent as the 
list of suspended and debarred contractors compiled pursuant to 
subpart 9.4 of the Federal Acquisition Regulation.''.

SEC. 844. SENSE OF CONGRESS REGARDING ALLOWABILITY OF COSTS OF EMPLOYEE 
                    STOCK OWNERSHIP PLANS.

    It is the sense of Congress that the Secretary of Defense 
should not disallow, under Department of Defense contracts, the 
following costs:
            (1) Interest costs associated with deferred 
        compensation employee stock ownership plans that were 
        incurred before January 1, 1994.
            (2) Costs related to employee stock ownership plan 
        (ESOP) debt, control premiums, or marketability 
        discounts associated with the valuation of ESOP stock 
        of closely held companies that were incurred before 
        January 1, 1995.

SEC. 845. EXPANSION OF PERSONNEL ELIGIBLE TO PARTICIPATE IN 
                    DEMONSTRATION PROJECT RELATING TO ACQUISITION 
                    WORKFORCE.

    (a) Covered Personnel.--(1) Subsection (a) of section 4308 
of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 10 U.S.C. 1701 note) is amended by adding 
before the period at the end the following: ``and supporting 
personnel assigned to work directly with the acquisition 
workforce''.
    (2) Subsection (b)(3)(A) of such section is amended by 
inserting before the semicolon the following: ``or involves a 
team of personnel more than half of which consists of members 
of the acquisition workforce and the remainder of which 
consists of supporting personnel assigned to work directly with 
the acquisition workforce''.
    (b) Commencement of Project.--Subsection (b)(3)(B) of such 
section is amended by striking out ``this Act'' and inserting 
in lieu thereof ``the National Defense Authorization Act for 
Fiscal Year 1998''.
    (c) Limitation on Number of Participants.--Such section is 
further amended by adding at the end the following:
    ``(d) Limitation on Number of Participants.--The total 
number of persons who may participate in the demonstration 
project under this section may not exceed 95,000.''.

SEC. 846. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY AMERICAN 
                    ACT.

    Section 827 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 U.S.C. 
10b-3) is amended by striking out ``120 days'' and inserting in 
lieu thereof ``90 days''.

SEC. 847. REPEAL OF REQUIREMENT FOR CONTRACTOR GUARANTEES ON MAJOR 
                    WEAPON SYSTEMS.

    (a) Repeal.--Section 2403 of title 10, United States Code, 
is repealed.
    (b) Clerical and Conforming Amendments.--(1) The table of 
sections at the beginning of chapter 141 of such title is 
amended by striking out the item relating to section 2403.
    (2) Section 803 of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2604; 10 
U.S.C. 2430 note) is amended--
            (A) in subsection (a), by striking out ``2403,'';
            (B) by striking out subsection (c); and
            (C) by redesignating subsection (d) as subsection 
        (c).

SEC. 848. REQUIREMENTS RELATING TO MICRO-PURCHASES.

    (a) Requirement.--(1) Not later than October 1, 1998, at 
least 60 percent of all eligible purchases made by the 
Department of Defense for an amount less than the micro-
purchase threshold shall be made through streamlined micro-
purchase procedures.
    (2) Not later than October 1, 2000, at least 90 percent of 
all eligible purchases made by the Department of Defense for an 
amount less than the micro-purchase threshold shall be made 
through streamlined micro-purchase procedures.
    (b) Eligible Purchases.--The Secretary of Defense shall 
establish which purchases are eligible for purposes of 
subsection (a). In establishing which purchases are eligible, 
the Secretary may exclude those categories of purchases 
determined not to be appropriate or practicable for streamlined 
micro-purchase procedures.
    (c) Plan.--Not later than March 1, 1998, the Secretary of 
Defense shall provide to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a plan to implement this section.
    (d) Report.--Not later than March 1 in each of the years 
1999, 2000, and 2001, the Secretary of Defense shall submit to 
the congressional defense committees a report on the 
implementation of this section. Each report shall include--
            (A) the total dollar amount of all Department of 
        Defense purchases for an amount less than the micro-
        purchase threshold in the fiscal year preceding the 
        year in which the report is submitted;
            (B) the total dollar amount of such purchases that 
        were considered to be eligible purchases;
            (C) the total amount of such eligible purchases 
        that were made through a streamlined micro-purchase 
        method; and
            (D) a description of the categories of purchases 
        excluded from the definition of eligible purchases 
        established under subsection (b).
    (e) Definitions.--In this section:
            (1) The term ``micro-purchase threshold'' has the 
        meaning provided in section 32 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 428).
            (2) The term ``streamlined micro-purchase 
        procedures'' means procedures providing for the use of 
        the Government-wide commercial purchase card or any 
        other method for carrying out micro-purchases that the 
        Secretary of Defense prescribes in the regulations 
        implementing this subsection.

SEC. 849. PROMOTION RATE FOR OFFICERS IN AN ACQUISITION CORPS.

    (a) Review of Acquisition Corps Promotion Selections.--Upon 
the approval of the President or his designee of the report of 
a selection board convened under section 611(a) of title 10, 
United States Code, which considered members of an Acquisition 
Corps of a military department for promotion to a grade above 
O-4, the Secretary of the military department shall submit a 
copy of the report to the Under Secretary of Defense for 
Acquisition and Technology for review.
    (b) Reporting Requirement.--Not later than January 31 of 
each year, the Under Secretary of Defense for Acquisition and 
Technology shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives a report containing the Under Secretary's 
assessment of the extent to which each military department is 
complying with the requirement set forth in section 1731(b) of 
title 10, United States Code.
    (c) Termination of Requirements.--This section shall cease 
to be effective on October 1, 2000.

SEC. 850. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

    (a) Policy.--Section 30 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 426) is amended to read as 
follows:

``SEC. 30. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

    ``(a) In General.--The head of each executive agency, after 
consulting with the Administrator, shall establish, maintain, 
and use, to the maximum extent that is practicable and cost-
effective, procedures and processes that employ electronic 
commerce in the conduct and administration of its procurement 
system.
    ``(b) Applicable Standards.--In conducting electronic 
commerce, the head of an agency shall apply nationally and 
internationally recognized standards that broaden 
interoperability and ease the electronic interchange of 
information.
    ``(c) Agency Procedures.--The head of each executive agency 
shall ensure that systems, technologies, procedures, and 
processes established pursuant to this section--
            ``(1) are implemented with uniformity throughout 
        the agency, to the extent practicable;
            ``(2) are implemented only after granting due 
        consideration to the use or partial use, as 
        appropriate, of existing electronic commerce and 
        electronic data interchange systems and infrastructures 
        such as the Federal acquisition computer network 
        architecture known as FACNET;
            ``(3) facilitate access to Federal Government 
        procurement opportunities, including opportunities for 
        small business concerns, socially and economically 
        disadvantaged small business concerns, and business 
        concerns owned predominantly by women; and
            ``(4) ensure that any notice of agency requirements 
        or agency solicitation for contract opportunities is 
        provided in a form that allows convenient and universal 
        user access through a single, Government-wide point of 
        entry.
    ``(d) Implementation.--The Administrator shall, in carrying 
out the requirements of this section--
            ``(1) issue policies to promote, to the maximum 
        extent practicable, uniform implementation of this 
        section by executive agencies, with due regard for 
        differences in program requirements among agencies that 
        may require departures from uniform procedures and 
        processes in appropriate cases, when warranted because 
        of the agency mission;
            ``(2) ensure that the head of each executive agency 
        complies with the requirements of subsection (c) with 
        respect to the agency systems, technologies, 
        procedures, and processes established pursuant to this 
        section; and
            ``(3) consult with the heads of appropriate Federal 
        agencies with applicable technical and functional 
        expertise, including the Office of Information and 
        Regulatory Affairs, the National Institute of Standards 
        and Technology, the General Services Administration, 
        and the Department of Defense.
    ``(e) Report.--Not later than March 1, 1998, and every year 
afterward through 2003, the Administrator shall submit to 
Congress a report setting forth in detail the progress made in 
implementing the requirements of this section. The report shall 
include the following:
            ``(1) A strategic plan for the implementation of a 
        Government-wide electronic commerce capability.
            ``(2) An agency-by-agency summary of implementation 
        of the requirements of subsection (c), including 
        timetables, as appropriate, addressing when individual 
        agencies will come into full compliance.
            ``(3) A specific assessment of compliance with the 
        requirement in subsection (c) to provide universal 
        public access through a single, Government-wide point 
        of entry.
            ``(4) Beginning with the report submitted on March 
        1, 1999, an agency-by-agency summary of the volume and 
        dollar value of transactions that were conducted using 
        electronic commerce methods during the previous 
        calendar year.
            ``(5) A discussion of possible incremental changes 
        to the electronic commerce capability referred to in 
        subsection (c)(4) to increase the level of government 
        contract information available to the private sector, 
        including an assessment of the advisability of 
        including contract award information in the electronic 
        commerce functional standard.
    ``(f) Electronic Commerce Defined.--For the purposes of 
this section, the term `electronic commerce' means electronic 
techniques for accomplishing business transactions, including 
electronic mail or messaging, World Wide Web technology, 
electronic bulletin boards, purchase cards, electronic funds 
transfers, and electronic data interchange.''.
    (b) Repeal of Requirements for Implementation of FACNET 
Capability.--Section 30A of the Office of Federal Procurement 
Policy Act (41 U.S.C. 426a) is repealed.
    (c) Repeal of Requirement for GAO Report.--Section 9004 of 
the Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 
426a note) is repealed.
    (d) Repeal of Condition for Use of Simplified Acquisition 
Procedures.--Section 31 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 427) is amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsections (f) and (g) as 
        subsections (e) and (f), respectively.
    (e) Amendments to Procurement Notice Requirements.--(1) 
Section 8(g)(1) of the Small Business Act (15 U.S.C. 637(g)(1)) 
is amended--
            (A) by striking out subparagraphs (A) and (B);
            (B) by redesignating subparagraphs (C), (D), (E), 
        (F), (G), and (H) as subparagraphs (B), (C), (D), (E), 
        (F), and (G), respectively; and
            (C) by inserting before subparagraph (B), as so 
        redesignated, the following new subparagraph (A):
            ``(A) the proposed procurement is for an amount not 
        greater than the simplified acquisition threshold and 
        is to be conducted by--
                    ``(i) using widespread electronic public 
                notice of the solicitation in a form that 
                allows convenient and universal user access 
                through a single, Government-wide point of 
                entry; and
                    ``(ii) permitting the public to respond to 
                the solicitation electronically.''.
    (2) Section 18(c)(1) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 416(c)(1)) is amended--
            (A) by striking out subparagraphs (A) and (B);
            (B) by redesignating subparagraphs (C), (D), (E), 
        (F), (G), and (H) as subparagraphs (B), (C), (D), (E), 
        (F), and (G), respectively; and
            (C) by inserting before subparagraph (B), as so 
        redesignated, the following new subparagraph (A):
            ``(A) the proposed procurement is for an amount not 
        greater than the simplified acquisition threshold and 
        is to be conducted by--
                    ``(i) using widespread electronic public 
                notice of the solicitation in a form that 
                allows convenient and universal user access 
                through a single, Government-wide point of 
                entry; and
                    ``(ii) permitting the public to respond to 
                the solicitation electronically.''.
    (3) The amendments made by paragraphs (1) and (2) shall be 
implemented in a manner consistent with any applicable 
international agreements.
    (f) Conforming and Technical Amendments.--(1) Section 5061 
of the Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 
413 note) is amended--
            (A) in subsection (c)(4)--
                    (i) by striking out ``the Federal 
                acquisition computer network (`FACNET')'' and 
                inserting in lieu thereof ``the electronic 
                commerce''; and
                    (ii) by striking out ``(as added by section 
                9001)''; and
            (B) in subsection (e)(9)(A), by striking out ``,  
        or by dissemination through FACNET,''.
    (2) Section 5401 of the Clinger-Cohen Act of 1996 
(divisions D and E of Public Law 104-106; 40 U.S.C. 1501) is 
amended--
            (A) in subsection (a)--
                    (i) by striking out ``through the Federal 
                Acquisition Computer Network (in this section 
                referred to as `FACNET')''; and
                    (ii) by striking out the last sentence;
            (B) in subsection (b)--
                    (i) by striking out ``Additional FACNET 
                Functions.--'' and all that follows through 
                ``(41 U.S.C. 426(b)), the FACNET architecture'' 
                and inserting in lieu thereof ``Functions.--(1) 
                The system for providing on-line computer 
                access''; and
                    (ii) in paragraph (2), by striking out 
                ``The FACNET architecture'' and inserting in 
                lieu there for ``The system for providing on-
                line computer access'';
            (C) in subsection (c)(1), by striking out ``the 
        FACNET architecture'' and inserting in lieu thereof 
        ``the system for providing on-line computer access''; 
        and
            (D) by striking out subsection (d).
    (3)(A) Section 2302c of title 10, United States Code, is 
amended to read as follows:

``Sec. 2302c. Implementation of electronic commerce capability

    ``(a) Implementation of Electronic Commerce Capability.--
(1) The head of each agency named in paragraphs (1), (5) and 
(6) shall implement the electronic commerce capability required 
by section 30 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 426).
    ``(2) The Secretary of Defense shall act through the Under 
Secretary of Defense for Acquisition and Technology to 
implement the capability within the Department of Defense.
    ``(3) In implementing the electronic commerce capability 
pursuant to paragraph (1), the head of an agency referred to in 
paragraph (1) shall consult with the Administrator for Federal 
Procurement Policy.
    ``(b) Designation of Agency Official.--The head of each 
agency named in paragraph (5) or (6) of section 2303 of this 
title shall designate a program manager to implement the 
electronic commerce capability for that agency. The program 
manager shall report directly to an official at a level not 
lower than the senior procurement executive designated for the 
agency under section 16(3) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 414(3)).''.
    (B) Section 2304(g)(4) of such title 10 is amended by 
striking out ``31(g)'' and inserting in lieu thereof ``31(f)''.
    (4)(A) Section 302C of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 252c) is amended 
to read as follows:

``SEC. 302C. IMPLEMENTATION OF ELECTRONIC COMMERCE CAPABILITY.

    ``(a) Implementation of Electronic Commerce Capability.--
(1) The head of each executive agency shall implement the 
electronic commerce capability required by section 30 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 426).
    ``(2) In implementing the electronic commerce capability 
pursuant to paragraph (1), the head of an executive agency 
shall consult with the Administrator for Federal Procurement 
Policy.
    ``(b) Designation of Agency Official.--The head of each 
executive agency shall designate a program manager to implement 
the electronic commerce capability for that agency. The program 
manager shall report directly to an official at a level not 
lower than the senior procurement executive designated for the 
executive agency under section 16(3) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 414(3)).''.
    (B) Section 303(g)(5) of the Federal Property and 
Administrative Services Act (41 U.S.C. 253(g)(5)) is amended by 
striking out ``31(g)'' and inserting in lieu thereof ``31(f)''.
    (g) Effective Date.--(1) Except as provided in paragraph 
(2), the amendments made by this section shall take effect 180 
days after the date of the enactment of this Act.
    (2) The repeal made by subsection (c) of this section shall 
take effect on the date of the enactment of this Act.

SEC. 851. CONFORMANCE OF POLICY ON PERFORMANCE BASED MANAGEMENT OF 
                    CIVILIAN ACQUISITION PROGRAMS WITH POLICY 
                    ESTABLISHED FOR DEFENSE ACQUISITION PROGRAMS.

    (a) Performance Goals.--Section 313(a) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 
263(a)) is amended to read as follows:
    ``(a) Congressional Policy.--It is the policy of Congress 
that the head of each executive agency should achieve, on 
average, 90 percent of the cost, performance, and schedule 
goals established for major acquisition programs of the 
agency.''.
    (b) Conforming Amendment to Reporting Requirement.--Section 
6(k) of the Office of Federal Procurement Policy Act (41 U.S.C. 
405(k)) is amended by inserting ``regarding major acquisitions 
that is'' in the first sentence after ``policy''.

SEC. 852. MODIFICATION OF PROCESS REQUIREMENTS FOR THE SOLUTIONS-BASED 
                    CONTRACTING PILOT PROGRAM.

    (a) Source Selection.--Paragraph (9) of section 5312(c) of 
the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 
104-106; 40 U.S.C. 1492(c)) is amended--
            (1) in subparagraph (A), by striking out ``, and 
        ranking of alternative sources,'' and inserting in lieu 
        thereof ``or sources,'';
            (2) in subparagraph (B)--
                    (A) in the matter preceding clause (i), by 
                inserting ``(or a longer period, if approved by 
                the Administrator)'' after ``30 to 60 days'';
                    (B) in clause (i), by inserting ``or 
                sources'' after ``source''; and
                    (C) in clause (ii), by striking out ``that 
                source'' and inserting in lieu thereof ``the 
                source whose offer is determined to be most 
                advantageous to the Government''; and
            (3) in subparagraph (C), by striking out ``with 
        alternative sources (in the order ranked)''.
    (b) Time Management Discipline.--Paragraph (12) of such 
section is amended by inserting before the period at the end 
the following: ``, except that the Administrator may approve 
the application of a longer standard period''.

SEC. 853. GUIDANCE AND STANDARDS FOR DEFENSE ACQUISITION WORKFORCE 
                    TRAINING REQUIREMENTS.

    The Secretary of Defense shall develop appropriate guidance 
and standards to ensure that the Department of Defense will 
continue, where appropriate and cost-effective, to enter into 
contracts for the training requirements of sections 1723, 1724, 
and 1735 of title 10, United States Code, while maintaining 
appropriate control over the content and quality of such 
training.

SEC. 854. STUDY AND REPORT TO CONGRESS ASSESSING DEPENDENCE ON FOREIGN 
                    SOURCES FOR RESISTORS AND CAPACITORS.

    (a) Study.--The Secretary of Defense shall conduct a study 
of the capacitor and resistor industries in the United States 
and the degree of United States dependence on foreign sources 
for resistors and capacitors.
    (b) Report.--Not later than May 1, 1998, the Secretary 
shall submit to Congress a report on the results of the study 
under subsection (a). The report shall include the following:
            (1) An assessment of the industrial base for the 
        production of resistors and capacitors within the 
        United States and a projection of any changes in that 
        base that are likely to occur after the implementation 
        of relevant tariff reductions required by the 
        Information Technology Agreement entered into at the 
        World Trade Organization Ministerial in Singapore in 
        December 1996.
            (2) An assessment of the level of dependence on 
        foreign sources for procurement of resistors and 
        capacitors and a projection of the level of dependence 
        on foreign sources that is likely to occur after the 
        implementation of relevant tariff reductions required 
        by the Information Technology Agreement.
            (3) The implications for the national security of 
        the United States of the projections reported under 
        paragraphs (1) and (2).
            (4) Recommendations for appropriate changes, if 
        any, in defense procurement policies or other Federal 
        policies based on such implications.

SEC. 855. DEPARTMENT OF DEFENSE AND FEDERAL PRISON INDUSTRIES JOINT 
                    STUDY.

    (a) Study of Existing Procurement Procedures.--The 
Secretary of Defense and the Director of Federal Prison 
Industries shall jointly conduct a study of the procurement 
procedures, regulations, and statutes that govern procurement 
transactions between the Department of Defense and Federal 
Prison Industries.
    (b) Report.--(1) The Secretary and the Director shall, not 
later than 180 days after the date of the enactment of this 
Act, submit to the committees listed in paragraph (2) a report 
containing the findings of the study and recommendations on the 
means to improve the efficiency and reduce the cost of 
transactions described in subsection (a).
    (2) The committees referred to in paragraph (1) are the 
following:
            (A) The Committee on Armed Services and the 
        Committee on the Judiciary of the Senate.
            (B) The Committee on National Security and the 
        Committee on the Judiciary of the House of 
        Representatives.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Positions and Organizations and Other 
                             General Matters

Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff for 
          National Guard matters and for Reserve matters.
Sec. 902. Use of CINC Initiative Fund for force protection.
Sec. 903. Revision to required frequency for provision of policy 
          guidance for contingency plans.
Sec. 904. Annual justification for Department of Defense advisory 
          committees.
Sec. 905. Airborne reconnaissance management.
Sec. 906. Termination of the Armed Services Patent Advisory Board.
Sec. 907. Coordination of Department of Defense criminal investigations 
          and audits.

         Subtitle B--Department of Defense Personnel Management

Sec. 911. Reduction in personnel assigned to management headquarters and 
          headquarters support activities.
Sec. 912. Defense acquisition workforce.

          Subtitle C--Department of Defense Schools and Centers

Sec. 921. Professional military education schools.
Sec. 922. Center for Hemispheric Defense Studies.
Sec. 923. Correction to reference to George C. Marshall European Center 
          for Security Studies.

     Subtitle D--Department of Defense Intelligence-Related Matters

Sec. 931. Transfer of certain military department programs from TIARA 
          budget aggregation.
Sec. 932. Report on coordination of access of commanders and deployed 
          units to intelligence collected and analyzed by the 
          intelligence community.
Sec. 933. Protection of imagery, imagery intelligence, and geospatial 
          information and data.
Sec. 934. POW/MIA intelligence analysis.

Subtitle A--Department of Defense Positions and Organizations and Other 
                            General Matters

SEC. 901. ASSISTANTS TO THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF FOR 
                    NATIONAL GUARD MATTERS AND FOR RESERVE MATTERS.

    (a) Establishment of Positions.--The Secretary of Defense 
shall establish the following positions within the Joint Staff:
            (1) Assistant to the Chairman of the Joint Chiefs 
        of Staff for National Guard Matters.
            (2) Assistant to the Chairman of the Joint Chiefs 
        of Staff for Reserve Matters.
    (b) Selection.--(1) The Assistant to the Chairman of the 
Joint Chiefs of Staff for National Guard Matters shall be 
selected by the Chairman from officers of the Army National 
Guard of the United States or the Air Guard of the United 
States who--
            (A) are recommended for such selection by their 
        respective Governors or, in the case of the District of 
        Columbia, the commanding general of the District of 
        Columbia National Guard;
            (B) have had at least 10 years of federally 
        recognized commissioned service in the National Guard; 
        and
            (C) are in a grade above the grade of colonel.
    (2) The Assistant to the Chairman of the Joint Chiefs of 
Staff for Reserve Matters shall be selected by the Chairman 
from officers of the Army Reserve, the Naval Reserve, the 
Marine Corps Reserve or the Air Force Reserve who--
                    (A) are recommended for such selection by 
                the Secretary of the military department 
                concerned;
                    (B) have had at least 10 years of 
                commissioned service in their reserve 
                component; and
                    (C) are in a grade above the grade of 
                colonel or, in the case of the Naval Reserve, 
                captain.
    (c) Term of Office.--Each Assistant to the Chairman under 
subsection (a) serves at the pleasure of the Chairman for a 
term of two years and may be continued in that assignment in 
the same manner for one additional term. However, in time of 
war there is no limit on the number of terms.
    (d) Grade.--Each Assistant to the Chairman, while so 
serving, holds the grade of major general or, in the case of 
the Naval Reserve, rear admiral. Each such officer shall be 
considered to be serving in a position external to that 
officer's Armed Force for purposes of section 721 of title 10, 
United States Code, as added by section 501(a).
    (e) Duties.--The Assistant to the Chairman for National 
Guard Matters is an adviser to the Chairman on matters relating 
to the National Guard and performs the duties prescribed for 
that position by the Chairman. The Assistant to the Chairman 
for Reserve Matters is an adviser to the Chairman on matters 
relating to the reserves and performs the duties prescribed for 
that position by the Chairman.
    (f) Other Reserve Component Representation on Joint 
Staff.--(1) The Secretary of Defense, in consultation with the 
Chairman of the Joint Chiefs, shall develop appropriate policy 
guidance to ensure that, to the maximum extent practicable, the 
level of reserve component officer representation within the 
Joint Staff is commensurate with the significant role of the 
reserve components within the Total Force.
    (2) Not later than March 1, 1998, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
a report describing the steps taken and being taken to 
implement this subsection.
    (g) Effective Date.--The positions specified in subsection 
(a) shall be established by the Secretary of Defense not later 
than 60 days after the date of the enactment of this Act.

SEC. 902. USE OF CINC INITIATIVE FUND FOR FORCE PROTECTION.

    Section 166a(b) of title 10, United States Code, is amended 
by adding at the end the following:
            ``(9) Force protection.''.

SEC. 903. REVISION TO REQUIRED FREQUENCY FOR PROVISION OF POLICY 
                    GUIDANCE FOR CONTINGENCY PLANS.

    Section 113(g)(2) of title 10, United States Code, is 
amended--
            (1) in the first sentence, by striking out 
        ``annually''; and
            (2) in the second sentence, by inserting ``be 
        provided every two years or more frequently as needed 
        and shall'' after ``Such guidance shall''.

SEC. 904. ANNUAL JUSTIFICATION FOR DEPARTMENT OF DEFENSE ADVISORY 
                    COMMITTEES.

    (a) Annual Justification Required.--Chapter 7 of title 10, 
United States Code, is amended by adding after section 182, as 
added by section 382(a)(1), the following new section:

``Sec. 183. Advisory committees: annual justification required

    ``(a) Annual Report.--The Secretary of Defense shall 
include in the annual report of the Secretary under section 
113(c) of this title a report on advisory committees of the 
Department of Defense. In each such report, the Secretary 
shall--
            ``(1) identify each advisory committee that the 
        Secretary proposes to support, or that the Secretary is 
        required by law or direction from the President to 
        support, during the next fiscal year; and
            ``(2) for each committee identified under paragraph 
        (1), set forth--
                    ``(A) the justification or requirement for 
                that committee; and
                    ``(B) the projected cost to the Department 
                of Defense to support that committee during the 
                next fiscal year.
    ``(b) Advisory Committee Defined.--In this section, the 
term `advisory committee' means an entity that is subject to 
the provisions of the Federal Advisory Committee Act (5 U.S.C. 
App.).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding after the item 
relating to section 182, as added by section 382(a)(2), the 
following new item:

``183. Advisory committees: annual justification required.''.

SEC. 905. AIRBORNE RECONNAISSANCE MANAGEMENT.

    (a) Reorganization of Defense Airborne Reconnaissance 
Management.--Not later than September 30, 1998, the Secretary 
of Defense shall reorganize the management of defense airborne 
reconnaissance within the Department of Defense in accordance 
with the plan developed under subsection (b).
    (b) Plan and Report.--(1) The Secretary of Defense shall 
develop a plan to reorganize the following organizations by 
transferring functions as required under subsections (c) and 
(d):
            (A) The organization within the Department of 
        Defense that is subordinate to the Under Secretary of 
        Defense for Acquisition and Technology and known as the 
        Defense Airborne Reconnaissance Office.
            (B) The organization within the Department of 
        Defense that is subordinate to the Secretary of the 
        Navy and known as the Unmanned Aerial Vehicle Joint 
        Program Office.
    (2) The Secretary shall submit to the congressional defense 
committees a report containing--
            (A) the plan developed under paragraph (1); and
            (B) an explanation of how the plan addresses the 
        findings and recommendations in the final report of the 
        Task Force on Defense Reform (established by the 
        Secretary of Defense on May 14, 1997, and headed by the 
        Deputy Secretary of Defense).
    (3) The plan under paragraph (1) shall be developed, and 
the report under paragraph (2) shall be submitted, not later 
than March 1, 1998.
    (c) Transfer of Certain Functions to Secretaries of 
Military Departments.--(1) Not later than September 30, 1998, 
the Secretary of Defense shall transfer to the Secretaries of 
the military departments those functions specified in paragraph 
(2) that were performed on the day before the date of the 
enactment this Act by the Defense Airborne Reconnaissance 
Office and the Unmanned Aerial Vehicle Joint Program Office.
    (2) The functions referred to in paragraph (1) are the 
functions of the Defense Airborne Reconnaissance Office and the 
Unmanned Aerial Vehicle Joint Program Office relating to their 
responsibilities for acquisition of systems, budgeting, program 
management (for research, development, test, and evaluation, 
for procurement, for life-cycle support, and for operations), 
and related responsibilities for individual airborne 
reconnaissance programs.
    (d) Transfer of Certain Functions to Defense Airborne 
Reconnaissance Office.--(1) Not later than September 30, 1998, 
the Secretary of Defense shall transfer to the Defense Airborne 
Reconnaissance Office those functions specified in paragraph 
(2) that were performed on the day before the date of the 
enactment of this Act by the Unmanned Aerial Vehicle Joint 
Program Office.
    (2) The functions referred to in paragraph (1) are the 
functions of the Unmanned Aerial Vehicle Joint Program Office 
relating to its responsibilities for management and oversight 
of defense airborne reconnaissance architecture, requirements, 
and system interfaces (other than the responsibilities 
specified in subsection (c)(2)).

SEC. 906. TERMINATION OF THE ARMED SERVICES PATENT ADVISORY BOARD.

    (a) Termination of Board.--The organization within the 
Department of Defense known as the Armed Services Patent 
Advisory Board is terminated. No funds available for the 
Department of Defense may be used for the operation of that 
Board after the effective date specified in subsection (c).
    (b) Transfer of Functions.--All functions performed on the 
day before the date of the enactment of this Act by the Armed 
Services Patent Advisory Board (including performance of the 
responsibilities of the Department of Defense for security 
review of patent applications under chapter 17 of title 35, 
United States Code) shall be transferred to the Defense 
Technology Security Administration.
    (c) Effective Date.--Subsection (a) shall take effect at 
the end of the 120-day period beginning on the date of the 
enactment of this Act.

SEC. 907. COORDINATION OF DEPARTMENT OF DEFENSE CRIMINAL INVESTIGATIONS 
                    AND AUDITS.

    (a) Military Department Criminal Investigative 
Organizations.--(1) The heads of the military department 
criminal investigative organizations shall take such action as 
may be practicable to conserve the limited resources available 
to the military department criminal investigative organizations 
by sharing personnel, expertise, infrastructure, training, 
equipment, software, and other resources.
    (2) The heads of the military department criminal 
investigative organizations shall meet on a regular basis to 
determine the manner in which and the extent to which the 
military department criminal investigative organizations will 
be able to share resources.
    (b) Defense Auditing Organizations.--(1) The heads of the 
defense auditing organizations shall take such action as may be 
practicable to conserve the limited resources available to the 
defense auditing organizations by sharing personnel, expertise, 
infrastructure, training, equipment, software, and other 
resources.
    (2) The heads of the defense auditing organizations shall 
meet on a regular basis to determine the manner in which and 
the extent to which the defense auditing organizations will be 
able to share resources.
    (c) Implementation Plan.--Not later than December 31, 1997, 
the Secretary of Defense shall submit to Congress a plan 
designed to maximize the resources available to the military 
department criminal investigative organizations and the defense 
auditing organizations, as required by this section.
    (d) Definitions.--For purposes of this section:
            (1) The term ``military department criminal 
        investigative organizations'' means--
                    (A) the Army Criminal Investigation 
                Command;
                    (B) the Naval Criminal Investigative 
                Service; and
                    (C) the Air Force Office of Special 
                Investigations.
            (2) The term ``defense auditing organizations'' 
        means--
                    (A) the Office of the Inspector General of 
                the Department of Defense;
                    (B) the Defense Contract Audit Agency;
                    (C) the Army Audit Agency;
                    (D) the Naval Audit Service; and
                    (E) the Air Force Audit Agency.

         Subtitle B--Department of Defense Personnel Management

SEC. 911. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS 
                    AND HEADQUARTERS SUPPORT ACTIVITIES.

    (a) In General.--(1) Chapter 3 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 130a. Management headquarters and headquarters support 
                    activities personnel: limitation

    ``(a) Limitation.--Effective October 1, 2002, the number of 
management headquarters and headquarters support activities 
personnel in the Department of Defense may not exceed 75 
percent of the baseline number.
    ``(b) Phased Reduction.--The number of management 
headquarters and headquarters support activities personnel in 
the Department of Defense--
            ``(1) as of October 1, 1998, may not exceed 95 
        percent of the baseline number;
            ``(2) as of October 1, 1999, may not exceed 90 
        percent of the baseline number;
            ``(3) as of October 1, 2000, may not exceed 85 
        percent of the baseline number; and
            ``(4) as of October 1, 2001, may not exceed 80 
        percent of the baseline number.
    ``(c) Baseline Number.--In this section, the term `baseline 
number' means the number of management headquartersand 
headquarters support activities personnel in the Department of Defense 
as of October 1, 1997.
    ``(d) Limitation on Management Headquarters and 
Headquarters Support Personnel Assigned to the United States 
Transportation Command.--(1) Effective October 1, 1998, the 
number of management headquarters activities and management 
headquarters support activities personnel assigned to, or 
employed in, the United States Transportation Command may not 
exceed the number equal to 95 percent of the number of such 
personnel as of October 1, 1997.
    ``(2) For purposes of paragraph (1), the United States 
Transportation Command shall be considered to include the 
following:
            ``(A) The United States Transportation Command 
        Headquarters.
            ``(B) The Air Mobility Command of the Air Force.
            ``(C) The Military Sealift Command of the Navy.
            ``(D) The Military Traffic Management Command of 
        the Army.
            ``(E) The Defense Courier Service.
            ``(F) Any other element of the Department of 
        Defense assigned to the United States Transportation 
        Command.
    ``(3) The Secretary of Defense may waive or suspend 
operation of paragraph (1) in the event of a war or national 
emergency.
    ``(e) Management Headquarters and Headquarters Support 
Activities Personnel Defined.--In this section:
            ``(1) The term `management headquarters and 
        headquarters support activities personnel' means 
        military and civilian personnel of the Department of 
        Defense who are assigned to, or employed in, functions 
        in management headquarters activities or in management 
        headquarters support activities.
            ``(2) The terms `management headquarters 
        activities' and `management headquarters support 
        activities' have the meanings given those terms in 
        Department of Defense Directive 5100.73, entitled 
        `Department of Defense Management Headquarters and 
        Headquarters Support Activities', as in effect on 
        November 12, 1996.
    ``(f) Limitation on Reassignment of Functions.--In carrying 
out reductions in the number of personnel assigned to, or 
employed in, management headquarters and headquarters support 
activities in order to comply with this section, the Secretary 
of Defense and the Secretaries of the military departments may 
not reassign functions in order to evade the requirements of 
this section.
    ``(g) Flexibility.--If the Secretary of Defense determines, 
and certifies to Congress, that the limitation in subsection 
(b) with respect to any fiscal year would adversely affect 
United States national security, the Secretary may waive the 
limitation under that subsection with respect to that fiscal 
year. If the Secretary of Defense determines, and certifies to 
Congress, that the limitation in subsection (a) during fiscal 
year 2001 would adversely affect United States national 
security, the Secretary may waive the limitation under that 
subsection with respect to that fiscal year. The authority 
under this subsection may be used only once, with respect to a 
single fiscal year.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``130a. Management headquarters and headquarters support activities 
          personnel: limitation.''.

    (b) Implementation Report.--Not later than January 15, 
1998, the Secretary of Defense shall submit to Congress a 
report--
            (1) containing a plan to achieve the personnel 
        reductions required by section 130a of title 10, United 
        States Code, as added by subsection (a); and
            (2) including the recommendations of the Secretary 
        regarding--
                    (A) the revision, replacement, or 
                augmentation of Department of Defense Directive 
                5100.73, entitled ``Department of Defense 
                Management Headquartersand Headquarters Support 
Activities'', as in effect on November 12, 1996; and
                    (B) the revision of the definitions of the 
                terms ``management headquarters activities'' 
                and ``management headquarters support 
                activities'' under that Directive so that those 
                terms apply uniformly throughout the Department 
                of Defense.
    (c)  Duties of Task Force on Defense Reform to Include 
Consideration Of Management Headquarters Activities.--(1) The 
Secretary of Defense shall require that the areas of study of 
the Task Force on Defense Reform (established by the Secretary 
of Defense on May 14, 1997, and headed by the Deputy Secretary 
of Defense) include an examination of the missions, functions, 
and responsibilities of the various management headquarters 
activities and management headquarters support activities of 
the Department of Defense. In carrying out that examination of 
those activities, the Task Force shall identify areas of 
duplication in those activities and recommend to the Secretary 
options to streamline, reduce, and eliminate redundancies.
    (2) The examination of the missions, functions, and 
responsibilities of the various management headquarters 
activities and management headquarters support activities of 
the Department of Defense under paragraph (1) shall include the 
following:
            (A) An assessment of benefits of consolidation or 
        selected elimination of Department of Defense 
        management headquarters activities and management 
        headquarters support activities.
            (B) An assessment of the opportunities to 
        streamline the management headquarters and management 
        headquarters support infrastructure that were realized 
        as a result of the enactment of the Federal Acquisition 
        Streamlining Act of 1994 (Public Law 103-355) and the 
        Clinger-Cohen Act of 1996 (divisions D and E of Public 
        Law 104-106) or as result of other management reform 
        initiatives implemented administratively during the 
        period from 1993 through 1997.
            (C) An assessment of such other options for 
        streamlining or restructuring the management 
        headquarters and management headquarters support 
        infrastructure as the Task Force considers appropriate 
        and as can be carried out under existing provisions of 
        law.
    (3) Not later than March 1, 1998, the Secretary of Defense 
shall submit to Congress a report on the results of the 
examination by the Task Force under this subsection. The 
Secretary shall include in the report any report to the 
Secretary from the Task Force with respect to the matters 
described in paragraphs (1) and (2).
    (d) Codification of Prior Permanent Limitation on OSD 
Personnel.--(1) Chapter 4 of title 10, United States Code, is 
amended by adding at the end a new section 143 consisting of--
            (A) a heading as follows:

``Sec. 143. Office of the Secretary of Defense personnel: limitation'';

            and
            (B) a text consisting of the text of subsections 
        (a) through (f) of section 903 of the National Defense 
        Authorization Act for Fiscal Year 1997 (Public Law 104-
        201; 110 Stat. 2617).
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``143. Office of the Secretary of Defense personnel: limitation.''.

    (3) Section 903 of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2617) is 
repealed.

SEC. 912. DEFENSE ACQUISITION WORKFORCE.

    (a) Reduction of Defense Acquisition Workforce.--(1) The 
Secretary of Defense shall accomplish reductions in defense 
acquisition personnel positions during fiscal year 1998 so that 
the total number of such personnel asof October 1, 1998, is 
less than the total number of such personnel as of October 1, 1997, by 
at least the applicable number determined under paragraph (2).
    (2)(A) The applicable number for purposes of paragraph (1) 
is 25,000. However, the Secretary of Defense may specify a 
lower number, which may not be less than 10,000, as the 
applicable number for purposes of paragraph (1) if the 
Secretary determines, and certifies to Congress not later than 
June 1, 1998, that an applicable number greater than the number 
specified by the Secretary would be inconsistent with the cost-
effective management of the defense acquisition system to 
obtain best value equipment and would adversely affect military 
readiness.
    (B) The Secretary shall include with such a certification a 
detailed explanation of each of the matters certified.
    (C) The authority of the Secretary under subparagraph (A) 
may only be delegated to the Deputy Secretary of Defense.
    (3) For purposes of this subsection, the term ``defense 
acquisition personnel'' means military and civilian personnel 
(other than civilian personnel who are employed at a 
maintenance depot) who are assigned to, or employed in, 
acquisition organizations of the Department of Defense (as 
specified in Department of Defense Instruction numbered 5000.58 
dated January 14, 1992).
    (b) Report on Specific Acquisition Positions Previously 
Eliminated.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on reductions in the defense acquisition 
workforce made since fiscal year 1989. The report shall show 
aggregate reductions by fiscal year and shall show for each 
fiscal year reductions identified by specific job title, 
classification, or position. The report shall also identify 
those reductions carried out pursuant to law (and how the 
Secretary implemented any statutory requirement for such 
reductions, including definition of the workforce subject to 
the reduction) and those reductions carried out as a result of 
base closures and realignments under the so-called BRAC 
process. The Secretary shall include in the report a definition 
of the term ``defense acquisition workforce'' that is to be 
applied uniformly throughout the Department of Defense.
    (c) Implementation Plan To Streamline and Improve 
Acquisition Organizations.--(1) Not later than April 1, 1998, 
the Secretary of Defense shall submit to Congress a report 
containing a plan to streamline the acquisition organizations, 
workforce, and infrastructure of the Department of Defense. The 
Secretary shall include with the report a detailed discussion 
of the recommendations of the Secretary based on the review 
under subsection (d) and the assessment of the Task Force on 
Defense Reform pursuant to subsection (e), together with a 
request for the enactment of any legislative changes necessary 
for implementation of the plan. The Secretary shall include in 
the report the results of the review under subsection (d) and 
the independent assessment of the Task Force on Defense Reform 
pursuant to subsection (e).
    (2) In carrying out this subsection and subsection (d), the 
Secretary of Defense shall formally consult with the Chairman 
of the Joint Chiefs of Staff, the Director of Program Analysis 
and Evaluation, the Under Secretary of Defense (Comptroller), 
and the Under Secretary for Acquisition and Technology.
    (d) Review of Acquisition Organizations and Functions.--The 
Secretary of Defense shall conduct a review of the 
organizations and functions of the Department of Defense 
acquisition activities and of the personnel required to carry 
out those functions. The review shall identify the following:
            (1) Opportunities for cross-service, cross-
        functional arrangements within the military services 
        and defense agencies.
            (2) Specific areas of overlap, duplication, and 
        redundancy among the various acquisition organizations.
            (3) Opportunities to further streamline acquisition 
        processes.
            (4) Benefits of an enhanced Joint Requirements 
        Oversight Council in the acquisition process.
            (5) Alternative consolidation options for 
        acquisition organizations.
            (6) Alternative methods for performing industry 
        oversight and quality assurance.
            (7) Alternative options to shorten the procurement 
        cycle.
            (8) Alternative acquisition infrastructure 
        reduction options within current authorities.
            (9) Alternative organizational arrangements that 
        capitalize on core acquisition competencies among the 
        military services and defense agencies.
            (10) Future acquisition personnel requirements of 
        the Department.
            (11) Adequacy of the Program, Plans, and Budgeting 
        System in fulfilling current and future acquisition 
        needs of the Department.
            (12) Effect of technology and advanced management 
        tools in the future acquisition system.
            (13) Applicability of more flexible alternative 
        approaches to the current civil service system for the 
        acquisition workforce.
            (14) Adequacy of Department of Defense Instruction 
        numbered 5000.58 dated January 14, 1992.
    (e)  Duties of Task Force on Defense Reform to Include 
Consideration Of Acquisition Organizations.--(1) The Secretary 
of Defense shall require that the areas of study of the Task 
Force on Defense Reform (established by the Secretary of 
Defense on May 14, 1997, and headed by the Deputy Secretary of 
Defense) include an examination of the missions, functions, and 
responsibilities of the various acquisition organizations of 
the Department of Defense, including the acquisition workforce 
of the Department. In carrying out that examination of those 
organizations and that workforce, the Task Force shall identify 
areas of duplication in defense acquisition organization and 
recommend to the Secretary options to streamline, reduce, and 
eliminate redundancies.
    (2) The examination of the missions, functions, and 
responsibilities of the various acquisition organizations of 
the Department of Defense under paragraph (1) shall include the 
following:
            (A) An assessment of benefits of consolidation or 
        selected elimination of Department of Defense 
        acquisition organizations.
            (B) An assessment of the opportunities to 
        streamline the defense acquisition infrastructure that 
        were realized as a result of the enactment of the 
        Federal Acquisition Streamlining Act of 1994 (Public 
        Law 103-355) and the Clinger-Cohen Act of 1996 
        (divisions D and E of Public Law 104-106) or as result 
        of other acquisition reform initiatives implemented 
        administratively during the period from 1993 through 
        1997.
            (C) An assessment of such other options for 
        streamlining or restructuring the defense acquisition 
        infrastructure as the Task Force considers appropriate 
        and as can be carried out under existing provisions of 
        law.
    (3) Not later than March 1, 1998, the Task Force shall 
submit to the Secretary a report on the results of its review 
of the acquisition organizations of the Department of Defense, 
including any recommendations of the Task Force for 
improvements to those organizations.
    (f) Technical Reference Correction.--Section 1721(c) of 
title 10, United States Code, is amended by striking out 
``November 25, 1988'' and inserting in lieu thereof ``November 
12, 1996''.

         Subtitle C--Department of Defense Schools and Centers

SEC. 921. PROFESSIONAL MILITARY EDUCATION SCHOOLS.

    (a) Component Institutions of the National Defense 
University.--(1) Chapter 108 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 2165. National Defense University: component institutions

    ``(a) In General.--There is a National Defense University 
in the Department of Defense.
    ``(b) Component Institutions.--The National Defense 
University consists of the following institutions:
            ``(1) The National War College.
            ``(2) The Industrial College of the Armed Forces.
            ``(3) The Armed Forces Staff College.
            ``(4) The Institute for National Strategic Studies.
            ``(5) The Information Resources Management 
        College.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``2165. National Defense University: component institutions.''.

    (b) Marine Corps University as Professional Military 
Education School.--Subsection (d) of section 2162 of such title 
is amended to read as follows:
    ``(d) Professional Military Education Schools.--This 
section applies to each of the following professional military 
education schools:
            ``(1) The National Defense University.
            ``(2) The Army War College.
            ``(3) The College of Naval Warfare.
            ``(4) The Air War College.
            ``(5) The United States Army Command and General 
        Staff College.
            ``(6) The College of Naval Command and Staff.
            ``(7) The Air Command and Staff College.
            ``(8) The Marine Corps University.''.
    (c) Repeal of Duplicative Definition.--Section 1595(d) of 
such title is amended--
            (1) by striking out ``(1)'' before ``In the case of 
        ''; and
            (2) by striking out paragraph (2).

SEC. 922. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

    (a) Institution of the National Defense University.--
Subsection (b) of section 2165 of title 10, United States Code, 
as added by section 921(a)(1), is amended by adding at the end 
the following new paragraph:
            ``(6) The Center for Hemispheric Defense 
        Studies.''.
    (b) Civilian Faculty Members.--Section 1595 of title 10, 
United States Code, is amended by striking out subsections (e) 
and (f) and inserting in lieu thereof the following:
    ``(e) Applicability to Director and Deputy Director at 
Certain Institutions.--In addition to the persons specified in 
subsection (a), this section also applies with respect to the 
Director and the Deputy Director of the following:
            ``(1) The George C. Marshall European Center for 
        Security Studies.
            ``(2) The Asia-Pacific Center for Security Studies.
            ``(3) The Center for Hemispheric Defense 
        Studies.''.

SEC. 923. CORRECTION TO REFERENCE TO GEORGE C. MARSHALL EUROPEAN CENTER 
                    FOR SECURITY STUDIES.

    (a) Correction to Reference to Name of Center.--Subsection 
(a) of section 506 of the Intelligence Authorization Act, 
Fiscal Year 1990 (Public Law 101-193; 8 U.S.C. 1430 note), is 
amended by striking out ``the United States Army Russian 
Institute'' and inserting in lieu thereof ``the George C. 
Marshall European Center for Security Studies''.
    (b) Section Heading.--The heading of such section is 
amended to read as follows:


``requirements for citizenship for staff of george c. marshall european 
                     center for security studies''.


         Subtitle D--Department of Defense Intelligence Matters

SEC. 931. TRANSFER OF CERTAIN MILITARY DEPARTMENT PROGRAMS FROM TIARA 
                    BUDGET AGGREGATION.

    (a) Transfer.--Effective March 1, 1998, the Secretary of 
Defense shall, for each program identified by the Secretary 
under subsection (c)(2), transfer the management and budgeting 
of funds for that program from the TIARA budget aggregation to 
a nonintelligence budget activity of the military department 
responsible for that program.
    (b) Assessment.--The Secretary of Defense shall conduct an 
assessment of the policy of the Department of Defense that is 
used for determining the programs of the Department that are 
included within the TIARA budget aggregation. In conducting the 
assessment, the Secretary--
            (1) shall consider whether the current policy is in 
        need of revision to reflect changes in technology and 
        battlefield use of TIARA systems;
            (2) shall specifically consider the appropriateness 
        of the continued inclusion in the TIARA budget 
        aggregation of each of the programs described in 
        subsection (e); and
            (3) may consider the appropriateness of the 
        continued inclusion in the TIARA budget aggregation of 
        any other program (in addition to the programs 
        described to in subsection (e)) that as of the date of 
        the enactment of this Act is managed and budgeted as 
        part of the TIARA budget aggregation.
    (c) Report.--Not later than March 1, 1998, the Secretary of 
Defense shall submit to Congress a report on the assessment 
carried out under section (b). The Secretary shall include in 
the report--
            (1) a description of any proposed changes to 
        Department of Defense policies for determining which 
        programs are included in the TIARA budget aggregation; 
        and
            (2) identification of each program (among the 
        programs considered pursuant to paragraphs (2) and (3) 
        of subsection (b)) for which the management and 
        budgeting of funds is to be transferred under 
        subsection (a).
    (d) Identification of Programs.--(1) In specifying the 
programs to be included on the list under subsection (c)(2), 
the Secretary--
            (A) shall (except as otherwise provided pursuant to 
        a waiver under paragraph (2)) include each program 
        described in subsection (e); and
            (B) may include such additional programs considered 
        in the assessment pursuant to subsection (b)(3) as the 
        Secretary determines appropriate.
    (2) The Secretary, after considering the results of the 
assessment under subsection (c), may waive the applicability of 
paragraph (1)(A) to any program described in subsection (e). 
The Secretary shall include in the report under subsection (c) 
identification of each such program for which the Secretary has 
granted such a waiver and supporting rationale for each waiver.
    (e) Covered Programs.--The programs described in this 
subsection are the following (each of which, as of the date of 
the enactment of this Act, is managed and budgeted as part of 
the TIARA budget aggregation):
            (1) Each targeting or target acquisition program of 
        the Department of Defense, including the Joint 
        Surveillance and Target Attack Radar System (JSTARS) 
        and the Advanced Deployable System.
            (2) Each Tactical Warning and Attack Assessment 
        program of the Department of Defense, including the 
        Defense Support Program, the Space-Based Infrared 
        Program, and early warning radars.
            (3) Each tactical communications system of the 
        Department of Defense, including the Joint Tactical 
        Terminal.
    (f) TIARA Budget Aggregation Defined.--For purposes of this 
section, the term ``TIARA budget aggregation'' means the 
aggregation of programs of the Department of Defense for which 
funds are managed and budgeted through a common designation as 
Tactical Intelligence and Related Activities (TIARA) of the 
Department of Defense.

SEC. 932. REPORT ON COORDINATION OF ACCESS OF COMMANDERS AND DEPLOYED 
                    UNITS TO INTELLIGENCE COLLECTED AND ANALYZED BY THE 
                    INTELLIGENCE COMMUNITY.

    (a) Findings.--Congress makes the following findings:
            (1) Coordination of operational intelligence 
        support for the commanders of the combatant commands 
        and deployed units of the Armed Forces has proven to be 
        inadequate.
            (2) Procedures used to reconcile information among 
        various intelligence community and Department of 
        Defense data bases have proven to be inadequate and, 
        being inadequate, have diminished the usefulness of 
        that information and have precluded commanders and 
        planners within the Armed Forces from fully benefiting 
        from key information that should have been available to 
        them.
            (3) Excessive compartmentalization of 
        responsibilities and information within the Department 
        of Defense and the other elements of the intelligence 
        community has resulted in inaccurate analysis of 
        important intelligence material.
            (4) Excessive restrictions on the distribution of 
        information within the executive branch have 
        disadvantaged units of the Armed Forces that would have 
        benefited most from the information.
            (5) Procedures used in the Department of Defense to 
        ensure that critical intelligence information is 
        provided to the right combat units in a timely manner 
        failed during the Persian Gulf War and, as a result, 
        information about potential chemical weapons storage 
        locations did not reach the units that eventually 
        destroyed those storage areas.
            (6) A recent, detailed review of the events leading 
        to and following the destruction of chemical weapons by 
        members of the Armed Forces at Khamisiyah, Iraq, during 
        the Persian Gulf War has revealed a number of 
        inadequacies in the way the Department of Defense and 
        the other elements of the intelligence community 
        handled, distributed, recorded, and stored intelligence 
        information about the threat of exposure of United 
        States forces to chemical weapons and the toxic agents 
        in those weapons.
            (7) The inadequacy of procedures for recording the 
        receipt of, and reaction to, intelligence reports 
        provided by the intelligence community to combat units 
        of the Armed Forces during the Persian Gulf War has 
        caused it to be impossible to analyze the failures in 
        transmission of intelligence-related information on the 
        location of chemical weapons at Khamisiyah, Iraq, that 
        resulted in the demolition of chemical weapons by 
        members of the Armed Forces unaware of the hazards to 
        which they were exposed.
    (b) Report Requirement.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report that 
identifies the specific actions that have been taken or are 
being taken to ensure that there is adequate coordination of 
access of commanders of the combatant commands and deployed 
units of the Armed Forced to intelligence collected and 
analyzed by the intelligence community.

SEC. 933. PROTECTION OF IMAGERY, IMAGERY INTELLIGENCE, AND GEOSPATIAL 
                    INFORMATION AND DATA.

    (a) Protection of Information on Capabilities.--Paragraph 
(1)(B) of section 455(b) of title 10, United States Code, is 
amended by inserting ``, or capabilities,'' after ``methods''.
    (b) Products Protected.--(1) Paragraph (2) of such section 
is amended to read as follows:
    ``(2) In this subsection, the term `geodetic product' means 
imagery, imagery intelligence, or geospatial information.''.
    (2) Section 467(4) of title 10, United States Code, is 
amended--
            (A) by inserting ``and'' at the end of subparagraph 
        (A);
            (B) in subparagraph (B), by striking out ``and 
        geodetic data; and'' and inserting in lieu thereof 
        ``geodetic data, and related products.''; and
            (C) by striking out subparagraph (C).

SEC. 934. POW/MIA INTELLIGENCE ANALYSIS.

    (a) Intelligence Analysis.--The Director of Central 
Intelligence, in consultation with the Secretary of Defense, 
shall provide intelligence analysis on matters concerning 
prisoners of war and missing persons (as defined in chapter 76 
of title 10, United States Code) to all departments and 
agencies of the Federal Government involved in such matters.
    (b) Use of Intelligence in Analysis of POW/MIA Cases in 
Department of Defense.--The Secretary of Defense shall ensure 
that the Defense Prisoner of War/Missing Personnel Office of 
the Department of Defense takes into full account all 
intelligence regarding matters concerning prisoners of war and 
missing persons (as defined in chapter 76 of title 10, United 
States Code) in analyzing cases involving such persons.

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of unauthorized fiscal year 1997 
          defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
          for fiscal year 1997.
Sec. 1005. Increase in fiscal year 1996 transfer authority.
Sec. 1006. Revision of authority for Fisher House trust funds.
Sec. 1007. Flexibility in financing closure of certain outstanding 
          contracts for which a small final payment is due.
Sec. 1008. Biennial financial management improvement plan.
Sec. 1009. Estimates and requests for procurement and military 
          construction for the reserve components.
Sec. 1010. Sense of Congress regarding funding for reserve component 
          modernization not requested in President's budget.
Sec. 1011. Management of working-capital funds.
Sec. 1012. Authority of Secretary of Defense to settle claims relating 
          to pay, allowances, and other benefits.
Sec. 1013. Payment of claims by members for loss of personal property 
          due to flooding in Red River Basin.
Sec. 1014. Advances for payment of public services.
Sec. 1015. United States Man and the Biosphere Program limitation.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Procedures for sale of vessels stricken from the Naval Vessel 
          Register.
Sec. 1022. Authority to enter into a long-term charter for a vessel in 
          support of the Surveillance Towed-Array Sensor (SURTASS) 
          program.
Sec. 1023. Transfer of two specified obsolete tugboats of the Army.
Sec. 1024. Congressional review period with respect to transfer of ex-
          U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
Sec. 1025. Transfers of naval vessels to certain foreign countries.
Sec. 1026. Reports relating to export of vessels that may contain 
          polychlorinated biphenyls.
Sec. 1027. Conversion of defense capability preservation authority to 
          Navy shipbuilding capability preservation authority.

                   Subtitle C--Counter-Drug Activities

Sec. 1031. Use of National Guard for State drug interdiction and 
          counter-drug activities.
Sec. 1032. Authority to provide additional support for counter-drug 
          activities of Mexico.
Sec. 1033. Authority to provide additional support for counter-drug 
          activities of Peru and Colombia.
Sec. 1034. Annual report on development and deployment of narcotics 
          detection technologies.

        Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1041. Repeal of miscellaneous reporting requirements.
Sec. 1042. Study of transfer of modular airborne fire fighting system.
Sec. 1043. Overseas infrastructure requirements.
Sec. 1044. Additional matters for annual report on activities of the 
          General Accounting Office.
Sec. 1045. Eye safety at small arms firing ranges.
Sec. 1046. Reports on Department of Defense procedures for investigating 
          military aviation accidents and for notifying and assisting 
          families of victims.

                Subtitle E--Matters Relating to Terrorism

Sec. 1051. Oversight of counterterrorism and antiterrorism activities; 
          report.
Sec. 1052. Provision of adequate troop protection equipment for Armed 
          Forces personnel engaged in peace operations; report on 
          antiterrorism activities and protection of personnel.

            Subtitle F--Matters Relating to Defense Property

Sec. 1061. Lease of nonexcess personal property of military departments.
Sec. 1062. Lease of nonexcess property of Defense Agencies.
Sec. 1063. Donation of excess chapel property to churches damaged or 
          destroyed by arson or other acts of terrorism.
Sec. 1064. Authority of the Secretary of Defense concerning disposal of 
          assets under cooperative agreements on air defense in Central 
          Europe.
Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition and 
          ammunition components.
Sec. 1066. Transfer of B-17 aircraft to museum.
Sec. 1067. Report on disposal of excess and surplus materials.

                        Subtitle G--Other Matters

Sec. 1071. Authority for special agents of the Defense Criminal 
          Investigative Service to execute warrants and make arrests.
Sec. 1072. Study of investigative practices of military criminal 
          investigative organizations relating to sex crimes.
Sec. 1073. Technical and clerical amendments.
Sec. 1074. Sustainment and operation of the Global Positioning System.
Sec. 1075. Protection of safety-related information voluntarily provided 
          by air carriers.
Sec. 1076. National Guard Challenge Program to create opportunities for 
          civilian youth.
Sec. 1077. Disqualification from certain burial-related benefits for 
          persons convicted of capital crimes.
Sec. 1078. Restrictions on the use of human subjects for testing of 
          chemical or biological agents.
Sec. 1079. Treatment of military flight operations.
Sec. 1080. Naturalization of certain foreign nationals who serve 
          honorably in the Armed Forces during a period of conflict.
Sec. 1081. Applicability of certain pay authorities to members of 
          specified independent study organizations.
Sec. 1082. Display of POW/MIA flag.
Sec. 1083. Program to commemorate 50th anniversary of the Korean 
          conflict.
Sec. 1084. Commendation of members of the Armed Forces and Government 
          civilian personnel who served during the Cold War; certificate 
          of recognition.
Sec. 1085. Sense of Congress on granting of statutory Federal charters.
Sec. 1086. Sense of Congress regarding military voting rights.
Sec. 1087. Designation of Bob Hope as an honorary veteran of the Armed 
          Forces of the United States.
Sec. 1088. Five-year extension of aviation insurance program.

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon 
determination by the Secretary of Defense that such action is 
necessary in the national interest, the Secretary may transfer 
amounts of authorizations made available to the Department of 
Defense in this division for fiscal year 1998 between any such 
authorizations for that fiscal year (or any subdivisions 
thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary 
of Defense may transfer under the authority of this section may 
not exceed $2,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly 
notify Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex 
prepared by the committee of conference to accompany the 
conference report on the bill H.R. 1119 of the One Hundred 
Fifth Congress and transmitted to the President is hereby 
incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to 
amounts authorized to be appropriated by other provisions of 
this Act.
    (c) Limitation on Use of Funds.--Funds appropriated 
pursuant to an authorization contained in this Act that are 
made available for a program, project, or activity referred to 
in the Classified Annex may only be expended for such program, 
project, or activity in accordance with such terms, conditions, 
limitations, restrictions, and requirements as are set out for 
that program, project, or activity in the Classified Annex.
    (d) Distribution of Classified Annex.--The President shall 
provide for appropriate distribution of the Classified Annex, 
or of appropriate portions of the annex, within the executive 
branch of the Government.

SEC. 1003. AUTHORITY FOR OBLIGATION OF UNAUTHORIZED FISCAL YEAR 1997 
                    DEFENSE APPROPRIATIONS.

    (a) Authority.--The amounts described in subsection (b) may 
be obligated and expended for programs, projects, and 
activities of the Department of Defense in accordance with 
fiscal year 1997 defense appropriations.
    (b) Covered Amounts.--The amounts referred to in subsection 
(a) are the amounts provided for programs, projects, and 
activities of the Department of Defense in fiscal year 1997 
defense appropriations that are in excess of the amounts 
provided for such programs, projects, and activities in fiscal 
year 1997 defense authorizations.
    (c) Definitions.--For the purposes of this section:
            (1) Fiscal year 1997 defense appropriations.--The 
        term ``fiscal year 1997 defense appropriations'' means 
        amounts appropriated or otherwise made available to the 
        Department of Defense for fiscal year 1997 in the 
        Department of Defense Appropriations Act, 1997 (as 
        contained in section 101(b) of Public Law 104-208).
            (2) Fiscal year 1997 defense authorizations.--The 
        term ``fiscal year 1997 defense authorizations'' means 
        amounts authorized to be appropriated for the 
        Department of Defense for fiscal year 1997 in the 
        National Defense Authorization Act for Fiscal Year 1997 
        (Public Law 104-201).

SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
                    FOR FISCAL YEAR 1997.

    Amounts authorized to be appropriated to the Department of 
Defense for fiscal year 1997 in the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201) are 
hereby adjusted, with respect to any such authorized amount, by 
the amount by which appropriations pursuant to such 
authorization were increased (by a supplemental appropriation) 
or decreased (by a rescission), or both, in the 1997 Emergency 
Supplemental Appropriations Act for Recovery from Natural 
Disasters, and for Overseas Peacekeeping Efforts, Including 
Those in Bosnia (Public Law 105-18).

SEC. 1005. INCREASE IN FISCAL YEAR 1996 TRANSFER AUTHORITY.

    Section 1001(a)(2) of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 100 Stat. 414) is 
amended by striking out ``$2,000,000,000'' and inserting in 
lieu thereof ``$3,100,000,000''.

SEC. 1006. REVISION OF AUTHORITY FOR FISHER HOUSE TRUST FUNDS.

    (a) Correction To Eliminate Use of Term Associated With 
Funding Authorities.--Section 2221(c) of title 10, United 
States Code, is amended by striking out ``or maintenance'' each 
place it appears.
    (b) Corpus of Air Force Trust Fund.--The Secretary of the 
Air Force shall deposit in the Fisher House Trust Fund, 
Department of the Air Force, an amount that the Secretary 
determines appropriate to establish the corpus of the fund.

SEC. 1007. FLEXIBILITY IN FINANCING CLOSURE OF CERTAIN OUTSTANDING 
                    CONTRACTS FOR WHICH A SMALL FINAL PAYMENT IS DUE.

    (a) Closure of Outstanding Contracts.--The Secretary of 
Defense may make the final payment on a contractto which this 
section applies from the account established pursuant to subsection 
(d).
    (b) Covered Contracts.--This section applies to any 
contract of the Department of Defense--
            (1) that was entered into before December 5, 1990; 
        and
            (2) for which an unobligated balance of an 
        appropriation that had been initially applied to the 
        contract was canceled before December 5, 1990, pursuant 
        to section 1552 of title 31, United States Code, as in 
        effect before that date.
    (c) Authority Limited to Small Final Payments.--The 
Secretary may use the authority provided by this section only 
for a contract for which the amount of the final payment due is 
not greater than the micro-purchase threshold (as defined in 
section 32 of the Office of Federal Procurement Policy Act (41 
U.S.C. 428)).
    (d) Account.--The Secretary may establish an account for 
the purposes of this section. The Secretary may from time to 
time transfer into the account, from funds made available to 
the Department of Defense for procurement or for research, 
development, test, and evaluation, such amounts as the 
Secretary determines to be needed for the purposes of the 
account, except that the total of such transfers may not exceed 
$1,000,000. Amounts in the account may be used only for the 
purposes of this section.
    (e) Closure of Account.--When the Secretary determines that 
all contracts to which this section applies have been closed 
and there is no further need for the account established under 
subsection (d), the Secretary shall close the account. Any 
amounts remaining in the account shall be covered into the 
Treasury as miscellaneous receipts.

SEC. 1008. BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN.

    (a) Biennial Plan.--(1) Chapter 131 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 2222. Biennial financial management improvement plan

    ``(a) Biennial Plan Required.--The Secretary of Defense 
shall submit to Congress a biennial strategic plan for the 
improvement of financial management within the Department of 
Defense. The plan shall be submitted not later than September 
30 of each even-numbered year.
    ``(b) Concept of Operations.--Each plan under subsection 
(a) shall include a statement of the Secretary of Defense's 
concept of operations for the financial management of the 
Department of Defense. Each such statement shall be a clear 
description of the manner in which the Department's financial 
management operations are carried out or will be carried out 
under the improvements set forth in the plan under subsection 
(a), including identification of operations that must be 
performed.
    ``(c) Matters To Be Addressed in Plan.--(1) Each plan under 
subsection (a) shall address all aspects of financial 
management within the Department of Defense, including the 
finance systems, accounting systems, and data feeder systems of 
the Department that support financial functions of the 
Department.
    ``(2) For the purposes of paragraph (1), a data feeder 
system is an automated or manual system from which information 
is derived for a financial management system or an accounting 
system.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``2222. Biennial financial management improvement plan.''.

    (b) Additional Content of First Plan.--The first financial 
management improvement plan submitted under section 2222 of 
title 10, United States Code (as added by subsection (a)), 
shall include the following:
            (1) A description of the costs and benefits of 
        integrating the various finance and accounting systems 
        of the Department of Defense and reducing the total 
        number of such systems, together with the Secretary's 
        assessment of the feasibility of implementing such an 
        integration.
            (2) Identification of problems with the accuracy of 
        data included in the finance systems, accounting 
        systems, and data feeder systems that support financial 
        functions of the Department of Defense, together with a 
        description of the actions that the Secretary can take 
        to address those problems.
            (3) Identification of weaknesses in the internal 
        controls of the systems referred to in paragraph (2), 
        together with a description of the actions that the 
        Secretary can take to address those weaknesses.
            (4) A description of actions that the Secretary can 
        take to eliminate negative unliquidated obligations, 
        unmatched disbursements, and in-transit disbursements 
        and to avoid such obligations and disbursements in the 
        future.
            (5) A description of the status of the efforts 
        being undertaken in the Department to consolidate and 
        eliminate--
                    (A) redundant or unneeded finance systems; 
                and
                    (B) redundant or unneeded accounting 
                systems.
            (6) A description of efforts being undertaken to 
        consolidate or eliminate redundant personnel data 
        systems, acquisition data systems, asset accounting 
        systems, time and attendance systems, and other data 
        feeder systems of the Department.
            (7) A description of efforts being undertaken to 
        integrate the data feeder systems of the Department 
        with the finance and accounting systems of the 
        Department.
            (8) A description of problems with the organization 
        or performance of the Operating Locations and Service 
        Centers of the Defense Finance and Accounting Service, 
        together with a description of the actions the 
        Secretary can take to address those problems.
            (9) A description of the costs and benefits of 
        reorganizing the Operating Locations and Service 
        Centers of the Defense Finance and Accounting Service 
        according tofunction, together with the Secretary's 
assessment of the feasibility of carrying out such a reorganization.
            (10) A description of the costs and benefits of 
        contracting for private-sector performance of specific 
        functions currently performed by the Defense Finance 
        and Accounting Service, together with the Secretary's 
        assessment of the feasibility of contracting for such 
        performance.
            (11) A description of actions that can be taken to 
        ensure that each comptroller position (and comparable 
        position) in the Department of Defense, whether filled 
        by a member of the Armed Forces or by a civilian 
        employee, is held by a person who, by reason of 
        education, technical competence, and experience, has 
        the core competencies for financial management.
            (12) A description of any other change in the 
        financial management structure of the Department or 
        revision of the financial processes and business 
        practices of the Department that the Secretary 
        considers necessary to improve financial management in 
        the Department.
    (c) Additional Matters.--For each of the problems and 
actions identified pursuant to paragraphs (1) through (12) of 
subsection (b) or in any other part of the plan covered by that 
subsection, the Secretary shall include statements of 
objectives, performance measures, and schedules and shall 
specify the individual and organizational responsibilities.
    (d) Definition.--In subsection (b), the term ``data feeder 
system'' has the meaning given that term in subsection (c)(2) 
of section 2222 of title 10, United States Code, as added by 
subsection (a).

SEC. 1009. ESTIMATES AND REQUESTS FOR PROCUREMENT AND MILITARY 
                    CONSTRUCTION FOR THE RESERVE COMPONENTS.

    (a) Detailed Presentation in Future-Years Defense 
Program.--Section 10543 of title 10, United States Code, is 
amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Secretary of Defense''; and
            (2) by adding at the end the following:
    ``(b) Associated Annexes.--The associated annexes of the 
future-years defense program shall specify, at the same level 
of detail as is set forth in the annexes for the active 
components, the amount requested for--
            ``(1) procurement of each item of equipment to be 
        procured for each reserve component; and
            ``(2) each military construction project to be 
        carried out for each reserve component, together with 
        the location of the project.
    ``(c) Report.--(1) If the aggregate of the amounts 
specified in paragraphs (1) and (2) of subsection (b) for a 
fiscal year is less than the amount equal to 90 percent of the 
average authorized amount applicable for that fiscal year under 
paragraph (2), the Secretary of Defense shall submit to 
Congress a report specifying for each reserve component the 
additional items of equipment that would be procured, and the 
additional military construction projects that would be carried 
out, if that aggregate amount were an amount equal to such 
average authorized amount. The report shall be at the same 
level of detail as is required by subsection (b).
    ``(2) In this subsection, the term `average authorized 
amount', with respect to a fiscal year, means the average of--
            ``(A) the aggregate of the amounts authorized to be 
        appropriated for the preceding fiscal year for the 
        procurement of items of equipment, and for military 
        construction, for the reserve components; and
            ``(B) the aggregate of the amounts authorized to be 
        appropriated for the fiscal year preceding the fiscal 
        year referred to in subparagraph (A) for the 
        procurement of items of equipment, and for military 
        construction, for the reserve components.''.
    (b) Prohibition.--The level of detail provided for 
procurement and military construction in the future-years 
defense programs for fiscal years after fiscal year 1998 may 
not be less than the level of detail provided for procurement 
and military construction in the future-years defense program 
for fiscal year 1998.

SEC. 1010. SENSE OF CONGRESS REGARDING FUNDING FOR RESERVE COMPONENT 
                    MODERNIZATION NOT REQUESTED IN PRESIDENT'S BUDGET.

    (a) Criteria.--It is the sense of Congress that, to the 
maximum extent practicable, Congress should authorize 
appropriations for procurement of reserve component 
modernization equipment for a fiscal year for equipment that is 
not included in the budget of the President for that fiscal 
year only if--
            (1) there is a requirement for that equipment that 
        has been validated by the Joint Requirements Oversight 
        Council;
            (2) procurement of that equipment is included for 
        reserve component modernization in the modernization 
        plan of the military department concerned and is 
        incorporated into the current future-years defense 
        program;
            (3) procurement of that equipment is consistent 
        with planned use of reserve component forces under 
        Department of Defense war plans; and
            (4) funds for that procurement, if authorized and 
        appropriated for that fiscal year, could be obligated 
        during that fiscal year.
    (b) Consideration of Views of Chairman of Joint Chiefs of 
Staff.--It is further the sense of Congress that, in applying 
the criteria set forth in subsection (a) with respect to 
procurement of reserve component modernization equipment, 
Congress should obtain the views of the Chairman of the Joint 
Chiefs of Staff on whether, under Department of Defense war 
plans, that equipment is appropriate for procurement for, and 
assignment to, reserve component forces.

SEC. 1011. MANAGEMENT OF WORKING-CAPITAL FUNDS.

    (a) Contracting for Capital Assets Procurement in Advance 
of Funds.--Section 2208 of title 10, United States Code, is 
amended by striking out subsection (k) and inserting in lieu 
thereof the following new subsection:
    ``(k)(1) Subject to paragraph (2), a contract for the 
procurement of a capital asset financed by a working-capital 
fund may be awarded in advance of the availability of funds in 
the working-capital fund for the procurement.
    ``(2) Paragraph (1) applies to any of the following capital 
assets that have a development or acquisition cost of not less 
than $100,000:
            ``(A) An unspecified minor military construction 
        project under section 2805(c)(1) of this title.
            ``(B) Automatic data processing equipment or 
        software.
            ``(C) Any other equipment.
            ``(D) Any other capital improvement.''.
    (b) Use of Advance Billing.--Such section is further 
amended by adding at the end the following new subsection:
    ``(l)(1) An advance billing of a customer of a working-
capital fund may be made if the Secretary of the military 
department concerned submits to Congress written notification 
of the advance billing within 30 days after the end of the 
month in which the advanced billing was made. The notification 
shall include the following:
            ``(A) The reasons for the advance billing.
            ``(B) An analysis of the effects of the advance 
        billing on military readiness.
            ``(C) An analysis of the effects of the advance 
        billing on the customer.
    ``(2) The Secretary of Defense may waive the notification 
requirements of paragraph (1)--
            ``(A) during a period war or national emergency; or
            ``(B) to the extent that the Secretary determines 
        necessary to support a contingency operation.
    ``(3) In this subsection:
            ``(A) The term `advance billing', with respect to a 
        working-capital fund, means a billing of a customer by 
        the fund, or a requirement for a customer to reimburse 
        or otherwise credit the fund, for the cost of goods or 
        services provided (or for other expenses incurred) on 
        behalf of the customer that is rendered or imposed 
        before the customer receives the goods or before the 
        services have been performed.
            ``(B) The term `customer' means a requisitioning 
        component or agency.''.
    (c) Fiscal Year Limitations.--(1) The total amount of 
advance billings for Department of the Navy working-capital 
funds and the Defense Business Operations Fund may not exceed--
            (A) $1,000,000,000 for fiscal year 1998; and
            (B) $800,000,000 for fiscal year 1999.
    (2) For purposes of paragraph (1), the term ``advance 
billing'' has the meaning given such term in section 2208(l)(3) 
of title 10, United States Code, as added by subsection (b).

SEC. 1012. AUTHORITY OF SECRETARY OF DEFENSE TO SETTLE CLAIMS RELATING 
                    TO PAY, ALLOWANCES, AND OTHER BENEFITS.

    Section 3702(e) of title 31, United States Code, is 
amended--
            (1) in paragraph (1), by striking out ``Comptroller 
        General'' and inserting in lieu thereof ``Secretary of 
        Defense''; and
            (2) by striking out paragraph (2) and inserting in 
        lieu thereof the following new paragraph:
    ``(2) Payment of a claim settled under paragraph (1) shall 
be made from an appropriation that is available, for the fiscal 
year in which the payment is made, for the same purpose as the 
appropriation to which the obligation claimed would have been 
charged if the obligation had been timely paid.''.

SEC. 1013. PAYMENT OF CLAIMS BY MEMBERS FOR LOSS OF PERSONAL PROPERTY 
                    DUE TO FLOODING IN RED RIVER BASIN.

    (a) Payment Authorized.--Notwithstanding section 3721(e) of 
title 31, United States Code, the Secretary of a military 
department may pay the claim of a member of the Armed Forces 
who resided (or whose dependents resided) in the vicinity of 
Grand Forks Air Force Base, North Dakota, during April and May 
1997 for loss and damage to personal propertyincurred by the 
member as a direct result of the flooding in the Red River Basin during 
such months.
    (b) Report on Department Policy.--The Secretary of Defense 
shall submit to Congress a report describing the Department of 
Defense policy regarding the payment of a claim by a member of 
the Armed Forces who is not assigned to quarters of the United 
States for losses and damage to personal property of the member 
incurred at the member's residence as a result of a natural 
disaster. The report shall include a description of the number 
of such claims received over the past 10 years, the number of 
claims paid, and the number of claims rejected. If the 
Secretary determines the Department of Defense should modify 
its policy in order to accept additional claims by members who 
are not assigned to quarters of the United States for losses 
and damage to personal property, the Secretary shall also 
include in the report any legislative changes that the 
Secretary considers necessary to enable the Secretary to 
implement the policy change.

SEC. 1014. ADVANCES FOR PAYMENT OF PUBLIC SERVICES.

    (a) In General.--Subsection (a) of section 2396 of title 
10, United States Code, is amended--
            (1) by striking out ``and'' at the end of paragraph 
        (2);
            (2) by striking out the period at the end of 
        paragraph (3) and inserting in lieu thereof ``; and''; 
        and
            (3) by adding at the end the following new 
        paragraph:
            ``(4) public service utilities.''.
    (b) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 2396. Advances for payments for compliance with foreign laws, 
                    rent in foreign countries, tuition, public utility 
                    services, and pay and supplies of armed forces of 
                    friendly foreign countries''.

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

``2396. Advances for payments for compliance with foreign laws, rent in 
          foreign countries, tuition, public utility services, and pay 
          and supplies of armed forces of friendly foreign countries.''.

SEC. 1015. UNITED STATES MAN AND THE BIOSPHERE PROGRAM LIMITATION.

    During fiscal year 1998, the Secretary of Defense may not 
take any steps to carry out or support the United States Man 
and the Biosphere Program or any related project.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1021. PROCEDURES FOR SALE OF VESSELS STRICKEN FROM THE NAVAL 
                    VESSEL REGISTER.

    Section 7305(c) of title 10, United States Code, is amended 
to read as follows:
    ``(c) Procedures for Sale.--(1) A vessel stricken from the 
Naval Vessel Register and not subject to disposal under any 
other law may be sold under this section.
    ``(2) In such a case, the Secretary may--
            ``(A) sell the vessel to the highest acceptable 
        bidder, regardless of the appraised value of the 
        vessel, after publicly advertising the sale of the 
        vessel for a period of not less than 30 days; or
            ``(B) subject to paragraph (3), sell the vessel by 
        competitive negotiation to the acceptable offeror who 
        submits the offer that is most advantageous to the 
        United States (taking into account price and such other 
        factors as the Secretary determines appropriate).
    ``(3) Before entering into negotiations to sell a vessel 
under paragraph (2)(B), the Secretary shall publish notice of 
the intention to do so in the Commerce Business Daily 
sufficiently in advance of initiating the negotiations that all 
interested parties are given a reasonable opportunity to 
prepare and submit proposals. The Secretary shall afford an 
opportunity to participate in the negotiations to all 
acceptable offerors submitting proposals that the Secretary 
considers as having the potential to be the most advantageous 
to the United States (taking into account price and such other 
factors as the Secretary determines appropriate).''.

SEC. 1022. AUTHORITY TO ENTER INTO A LONG-TERM CHARTER FOR A VESSEL IN 
                    SUPPORT OF THE SURVEILLANCE TOWED-ARRAY SENSOR 
                    (SURTASS) PROGRAM.

    The Secretary of the Navy is authorized to enter into a 
contract in accordance with section 2401 of title 10, United 
States Code, for the charter, for a period through fiscal year 
2003, of the vessel RV CORY CHOUEST (United States official 
number 933435) in support of the Surveillance Towed-Array 
Sensor (SURTASS) program.

SEC. 1023. TRANSFER OF TWO SPECIFIED OBSOLETE TUGBOATS OF THE ARMY.

    (a) Authority To Transfer Vessels.--The Secretary of the 
Army may transfer the two obsolete tugboats of the Army 
described in subsection (b) to the Brownsville Navigation 
District, Brownsville, Texas.
    (b) Vessels Covered.--Subsection (a) applies to the 
following two decommissioned tugboats of the Army, each of 
which is listed as of the date of the enactment of this Act as 
being surplus to the needs of the Army: the Normandy (LT-1971) 
and the Salerno (LT-1953).
    (c) Transfers To Be at No Cost to United States.--A 
transfer authorized by this section shall be made at no cost to 
the United States.
    (d) Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the 
transfers authorized by this section as the Secretary considers 
appropriate.

SEC. 1024. CONGRESSIONAL REVIEW PERIOD WITH RESPECT TO TRANSFER OF EX-
                    U.S.S. HORNET (CV-12) AND EX-U.S.S. MIDWAY (CV-41).

    (a) Reduction in Congressional Review Period.--In applying 
section 7306 of title 10, United States Code, with respect to 
the transfer of a vessel specified in subsection (c), 
subsection (d)(1)(B) of that section shall be applied by 
substituting ``30 days'' for ``60 days''.
    (b) Waiver if Only One Qualified Entity Applies for 
Transfer of Vessel.--If in the case of a vessel specified in 
subsection (c) only a single qualified entity, as determined by 
the Secretary of the Navy, applies for transfer of the vessel, 
the Secretary may carry out the transfer of the vessel under 
section 7306 of title 10, United States Code, without regard to 
subsection (d)(1)(B) of that section. In such a case, the 
transfer may be made only after 10 days of continuous session 
of Congress (determined in the manner specified in section 
7306(d)(2) of title 10, United States Code) have expired 
following the date on which the Secretary submits to Congress a 
certification that only a single qualified entity applied for 
transfer of the vessel.
    (c) Covered Vessels.--This section applies to the following 
vessels (each of which is a decommissioned aircraft carrier):
            (1) Ex-U.S.S. HORNET (CV-12).
            (2) Ex-U.S.S. MIDWAY (CV-41).

SEC. 1025. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

    (a) Authority.--The Secretary of the Navy is authorized to 
transfer vessels to foreign countries on a sales basis under 
section 21 of the Arms Export Control Act (22 U.S.C. 2761) as 
follows:
            (1) To the Government of Brazil, the HUNLEY class 
        submarine tender HOLLAND (AS 32).
            (2) To the Government of Chile, the KAISER class 
        oiler ISHERWOOD (T-AO 191).
            (3) To the Government of Egypt:
                    (A) The following frigates of the KNOX 
                class:
                            (i) The PAUL (FF 1080).
                            (ii) The MILLER (FF 1091).
                            (iii) The JESSE L. BROWN (FFT 
                        1089).
                            (iv) The MOINESTER (FFT 1097).
                    (B) The following frigates of the OLIVER 
                HAZARD PERRY class:
                            (i) The FAHRION (FFG 22).
                            (ii) The LEWIS B. PULLER (FFG 23).
            (4) To the Government of Israel, the NEWPORT class 
        tank landing ship PEORIA (LST 1183).
            (5) To the Government of Malaysia, the NEWPORT 
        class tank landing ship BARBOUR COUNTY (LST 1195).
            (6) To the Government of Mexico, the KNOX class 
        frigate ROARK (FF 1053).
            (7) To the Taipei Economic and Cultural 
        Representative Office in the United States (the Taiwan 
        instrumentality that is designated pursuant to section 
        10(a) of the Taiwan Relations Act), the following 
        frigates of the KNOX class:
                    (A) The WHIPPLE (FF 1062).
                    (B) The DOWNES (FF 1070).
            (8) To the Government of Thailand, the NEWPORT 
        class tank landing ship SCHENECTADY (LST 1185).
    (b) Costs of Transfers.--Any expense incurred by the United 
States in connection with a transfer authorized by subsection 
(a) shall be charged to the recipient.
    (c) Repair and Refurbishment in United States Shipyards.--
To the maximum extent practicable, the Secretary of the Navy 
shall require, as a condition of the transfer of a vessel under 
this section, that the country to which the vessel is 
transferred have such repair or refurbishment of the vessel as 
is needed, before the vessel joins the naval forces of that 
country, performed at a shipyard located in the United States, 
including a United States Navy shipyard.
    (d) Expiration of Authority.--The authority to transfer a 
vessel under subsection (a) shall expire at the end of the two-
year period beginning on the date of the enactment of this Act.

SEC. 1026. REPORTS RELATING TO EXPORT OF VESSELS THAT MAY CONTAIN 
                    POLYCHLORINATED BIPHENYLS.

    (a) Reports Required.--Not later than March 1, 1998, the 
Secretary of the Navy (with respect to the Navy), the 
Administrator of the Maritime Administration (with respect to 
the Maritime Administration), and the Administrator of the 
Environmental Protection Agency (with respect to the 
Environmental Protection Agency) shall each submit to Congress 
a report on the implementation of the agreement between the 
Department of the Navy and the Environmental Protection Agency 
that became effective August 6, 1997, and that is titled 
``Export of Naval Vessels that May Contain Polychlorinated 
Biphenyls for Scrapping Outside the United States''.
    (b) Contents of Reports.--The reports required by 
subsection (a) shall address, at a minimum, the following:
            (1) An assessment of the effects of the 
        notification requirements regarding the export of 
        vessels for scrapping, any impediments that those 
        requirements may create for the export of vessels, and 
        any changes to the agreement that may be required to 
        address those impediments.
            (2) An explanation of the process by which it is 
        determined which solid items containing polychlorinated 
        biphenyls are readily removable and must be removed 
        before the export of a vessel for scrapping, what types 
        of polychlorinated biphenyls have been determined to be 
        readily removable pursuant to this process, any 
        impediments that such determinations may create for the 
        export of vessels, and any changes to the agreement 
        that may be required to address those impediments or to 
        ensure protection of human health and the environment.
    (c) Amendments Relating to Disposal of Obsolete Vessels 
From the National Defense Reserve Fleet.--Section 6 of the 
National Maritime Heritage Act of 1994 (Public Law 103-451; 108 
Stat. 4776; 16 U.S.C. 5405) is amended--
            (1) in subsections (a)(1) and (b)(2)--
                    (A) by inserting ``or 510(i)'' after 
                ``508''; and
                    (B) by inserting ``or 1160(i)'' after 
                ``1158'';
            (2) in subsection (b)(2), by striking out ``first 
        6'' and inserting in lieu thereof ``first 8''; and
            (3) in subsection (c)(1)(A), by striking out 
        ``1999'' and inserting in lieu thereof ``2001''.

SEC. 1027. CONVERSION OF DEFENSE CAPABILITY PRESERVATION AUTHORITY TO 
                    NAVY SHIPBUILDING CAPABILITY PRESERVATION 
                    AUTHORITY.

    (a) In General.--(1) Chapter 633 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 7315. Preservation of Navy shipbuilding capability

    ``(a) Shipbuilding Capability Preservation Agreements.--The 
Secretary of the Navy may enter into an agreement, to be known 
as a `shipbuilding capability preservation agreement', with a 
shipbuilder under which the cost reimbursement rules described 
in subsection (b) shall be applied to the shipbuilder under a 
Navy contract for the construction of a ship. Such an agreement 
may be entered into in any case in which the Secretary 
determines that the application of such cost reimbursement 
rules would facilitate the achievement of the policy objectives 
set forth in section 2501(b) of this title.
    ``(b) Cost Reimbursement Rules.--The cost reimbursement 
rules applicable under an agreement entered into under 
subsection (a) are as follows:
            ``(1) The Secretary of the Navy shall, in 
        determining the reimbursement due a shipbuilder for its 
        indirect costs of performing a contract for the 
        construction of a ship for the Navy, allow the 
        shipbuilder to allocate indirect costs to its private 
        sector work only to the extent of the shipbuilder's 
        allocable indirect private sector costs, subject to 
        paragraph (3).
            ``(2) For purposes of paragraph (1), the allocable 
        indirect private sector costs of a shipbuilder are 
        those costs of the shipbuilder that are equal to the 
        sum of the following:
                    ``(A) The incremental indirect costs 
                attributable to such work.
                    ``(B) The amount by which the revenue 
                attributable to such private sector work 
                exceeds the sum of--
                            ``(i) the direct costs attributable 
                        to such private sector work; and
                            ``(ii) the incremental indirect 
                        costs attributable to such private 
                        sector work.
            ``(3) The total amount of allocable indirect 
        private sector costs for a contract covered by the 
        agreement may not exceed the amount of indirect costs 
        that a shipbuilder would have allocated to its private 
        sector work during the period covered by the agreement 
        in accordance with the shipbuilder's established 
        accounting practices.
    ``(c) Authority To Modify Cost Reimbursement Rules.--The 
cost reimbursement rules set forth in subsection (b) may be 
modified by the Secretary of the Navy for a particular 
agreement if the Secretary determines that modifications are 
appropriate to the particular situation to facilitate 
achievement of the policy set forth in section 2501(b) of this 
title.
    ``(d) Applicability.--(1) An agreement entered into with a 
shipbuilder under subsection (a) shall apply to each of the 
following Navy contracts with the shipbuilder:
            ``(A) A contract that is in effect on the date on 
        which the agreement is entered into.
            ``(B) A contract that is awarded during the term of 
        the agreement.
    ``(2) In a shipbuilding capability preservation agreement 
applicable to a shipbuilder, the Secretary may agree to apply 
the cost reimbursement rules set forth in subsection (b) to 
allocations of indirect costs to private sector work performed 
by the shipbuilder only with respect to costs that the 
shipbuilder incurred on or after the date of the enactment of 
the National Defense Authorization Act for Fiscal Year 1998 
under a contract between the shipbuilder and a private sector 
customer of the shipbuilder that became effective on or after 
January 26, 1996.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``7315. Preservation of Navy shipbuilding capability.''.

    (b) Implementation.--Not later than 30 days after the date 
of the enactment of this Act, the Secretary of the Navy shall 
establish application procedures and procedures for expeditious 
consideration of shipbuilding capability preservation 
agreements as authorized by section 7315 of title 10, United 
States Code, as added by subsection (a).
    (c) Report.--Not later than February 15, 1998, the 
Secretary of the Navy shall submit to Congress a report on 
applications for shipbuilding capability preservation 
agreements under section 7315 of title 10, United States Code, 
as added by subsection (a). The report shall specify the number 
of the applications received, the number of the applications 
approved, and a discussion of the reasons for disapproval of 
any application disapproved.
    (d) Repeal of Superseded Provision.--Section 808 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 110 Stat. 393; 10 U.S.C. 2501 note) is repealed.

                  Subtitle C--Counter-Drug Activities

SEC. 1031. USE OF NATIONAL GUARD FOR STATE DRUG INTERDICTION AND 
                    COUNTER-DRUG ACTIVITIES.

    (a) Relationship to Training and Readiness.--Subsection (b) 
of section 112 of title 32, United States Code, is amended--
            (1) by inserting ``(1)'' before ``Under 
        regulations''; and
            (2) by adding at the end the following new 
        paragraphs:
    ``(2) To ensure that the use of units and personnel of the 
National Guard of a State pursuant to a State drug interdiction 
and counter-drug activities plan is not detrimental to the 
training and readiness of such units and personnel, the 
requirements of section 2012(d) of title 10 shall apply in 
determining the drug interdiction and counter-drug activities 
that units and personnel of the National Guard of a State may 
perform.
    ``(3) Section 508 of this title, regarding the provision of 
assistance to certain specified youth and charitable 
organizations, shall apply in any case in which a unit or 
member of the National Guard of a State is proposed to be used 
pursuant to a State drug interdiction and counter-drug 
activities plan to provide to an organization specified in 
subsection (d) of such section any of the services described in 
subsection (b) of such section or services regarding counter-
drug education.''.
    (b) Engineer-Type Activities.--Subsection (c) of such 
section is amended--
            (1) by redesignating paragraphs (4) and (5) as 
        paragraphs (5) and (6), respectively; and
            (2) by inserting after paragraph (3) the following 
        new paragraph:
            ``(4) certify that any engineer-type activities (as 
        defined by the Secretary of Defense) under the plan 
        will be performed only by units and members of the 
        National Guard;''.
    (c) Annual Report.--Such section is further amended--
            (1) by redesignating subsections (g) and (h) as 
        subsections (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following 
        new subsection:
    ``(g) Annual Report.--The Secretary of Defense shall submit 
to Congress an annual report regarding assistance provided and 
activities carried out under this section during the preceding 
fiscal year. The report shall include the following:
            ``(1) The number of members of the National Guard 
        excluded under subsection (e) from the computation of 
        end strengths.
            ``(2) A description of the drug interdiction and 
        counter-drug activities conducted under State drug 
        interdiction and counter-drug activities plans referred 
        to in subsection (c) with funds provided under this 
        section.
            ``(3) An accounting of the amount of funds provided 
        to each State.
            ``(4) A description of the effect on military 
        training and readiness of using units and personnel of 
        the National Guard to perform activities under the 
        State drug interdiction and counter-drug activities 
        plans.''.
    (d) Conforming Amendments.--Subsection (e) of such section 
is amended--
            (1) by striking out ``(1)'' before ``Members''; and
            (2) by striking out paragraph (2).

SEC. 1032. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG 
                    ACTIVITIES OF MEXICO.

    (a) Extension of Authority; Consultation of Secretary of 
State.--Subsection (a) of section 1031 of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2637), is amended--
            (1) by striking out ``fiscal year 1997'' and 
        inserting in lieu thereof ``fiscal years 1997 and 
        1998''; and
            (2) by inserting after the first sentence the 
        following new sentence: ``In providing support to the 
        Government of Mexico under this section, the Secretary 
        of Defense shall consult with the Secretary of 
        State.''.
    (b) Extension of Availability of Funds.--Subsection (d) of 
such section is amended--
            (1) by striking out ``not more than'' and inserting 
        in lieu thereof ``an amount not to exceed''; and
            (2) by adding at the end the following new 
        sentences: ``Funds made available for fiscal year 1997 
        under this subsection and unobligated by September 30, 
        1997, may be obligated during fiscal year 1998. No 
        funds are authorized to be appropriated for fiscal year 
        1998 for the provision of support under this 
        section.''.

SEC. 1033. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG 
                    ACTIVITIES OF PERU AND COLOMBIA.

    (a) Authority To Provide Support.--Subject to subsection 
(f), during fiscal years 1998 through 2002, the Secretary of 
Defense may provide either or both of the foreign governments 
named in subsection (b) with the support described in 
subsection (c) for the counter-drug activities of that 
government. In providing support to a government under this 
section, the Secretary of Defense shall consult with the 
Secretary of State. The support provided under the authority of 
this section shall be in addition to support provided to the 
governments under any other provision of law.
    (b) Governments Eligible To Receive Support.--The foreign 
governments eligible to receive counter-drug support under this 
section are as follows:
            (1) The Government of Peru.
            (2) The Government of Colombia.
    (c) Types of Support.--The authority under subsection (a) 
is limited to the provision of the following types of support 
to a government named in subsection (b):
            (1) The types of support specified in paragraphs 
        (1), (2), and (3) of section 1031(b) of the National 
        Defense Authorization Act for Fiscal Year 1997 (Public 
        Law 104-201; 110 Stat. 2637).
            (2) The transfer of riverine patrol boats.
            (3) The maintenance and repair of equipment of the 
        government that is used for counter-drug activities.
    (d) Applicability of Other Support Authorities.--Except as 
otherwise provided in this section, the provisions of section 
1004 of the National Defense Authorization Act for Fiscal Year 
1991 (Public Law 101-510; 10 U.S.C. 374 note) shall apply to 
the provision of support under this section.
    (e) Fiscal Year 1998 Funding; Limitation on Obligations.--
(1) Of the amount authorized to be appropriated under section 
301(20) for drug interdiction and counter-drug activities, an 
amount not to exceed $9,000,000 shall be available for the 
provision of support under this section.
    (2) Amounts made available to carry out this section shall 
remain available until expended, except that the total amount 
obligated and expended under this section may not exceed 
$20,000,000 during any of the fiscal years 1999 through 2002.
    (f) Condition on Provision of Support.--(1) The Secretary 
of Defense may not obligate or expend funds during a fiscal 
year to provide support under this section to a government 
named in subsection (b) until the end of the 15-day period 
beginning on the date on which the Secretary submits to the 
congressional committees the written certification described in 
subsection (g) for that fiscal year.
    (2) In the case of the first fiscal year in which support 
is to be provided under this section to a government named in 
subsection (b), the obligation or expenditure of funds under 
this section to provide support to that government shall also 
be subject to the condition that--
            (A) the Secretary submit to the congressional 
        committees the riverine counter-drug plan described in 
        subsection (h); and
            (B) a period of 60 days expires after the date on 
        which the report is submitted.
    (3) In the case of subsequent fiscal years in which support 
is to be provided under this section to a government named in 
subsection (b), the obligation or expenditure of funds under 
this section to provide support to that government shall also 
be subject to the condition that the Secretary submit to the 
congressional committees any revision of the counter-drug plan 
described in subsection (h) applicable to that government.
    (4) For purposes of this subsection, the term 
``congressional committees'' means the following:
            (A) The Committee on Armed Services and the 
        Committee on Foreign Relations of the Senate.
            (B) The Committee on National Security and the 
        Committee on International Relations of the House of 
        Representatives.
    (g) Required Certification.--The written certification 
required by subsection (f)(1) for a fiscal year is a 
certification of the following with respect to each government 
to receive support under this section:
            (1) That the provision of the support to the 
        government will not adversely affect the military 
        preparedness of the United States Armed Forces.
            (2) That the equipment and materiel provided as 
        support will be used only by officials and employees of 
        the government who have undergone background 
        investigations by that government and have been 
        approved by that government to perform counter-drug 
        activities on the basis of the background 
        investigations.
            (3) That the government has certified to the 
        Secretary of Defense that--
                    (A) the equipment and material provided as 
                support will be used only by the officials and 
                employees referred to in paragraph (2);
                    (B) none of the equipment or materiel will 
                be transferred (by sale, gift, or otherwise) to 
                any person or entity not authorized by the 
                United States to receive the equipment or 
                materiel; and
                    (C) the equipment and materiel will be used 
                only for the purposes intended by the United 
                States Government.
            (4) That the government has implemented, to the 
        satisfaction of the Secretary of Defense, a system that 
        will provide an accounting and inventory of the 
        equipment and materiel provided as support.
            (5) That the departments, agencies, and 
        instrumentalities of the government will grant United 
        States Government personnel access to any of the 
        equipment or materiel provided as support, or to any of 
        the records relating to such equipment or materiel, 
        under terms and conditions similar to the terms and 
        conditions imposed with respect to such access under 
        section 505(a)(3) of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2314(a)(3)).
            (6) That the government will provide security with 
        respect to the equipment and materiel provided as 
        support that is substantially the same degree of 
        security that the United States Government would 
        provide with respect to such equipment and materiel.
            (7) That the government will permit continuous 
        observation and review by United States Government 
        personnel of the use of the equipment and materiel 
        provided as support under terms and conditions similar 
        to the terms and conditions imposed with respect to 
        such observation and review under section 505(a)(3) of 
        the Foreign Assistance Act of 1961 (22 U.S.C. 
        2314(a)(3)).
    (h) Riverine Counter-Drug Plan.--The Secretary of Defense, 
in consultation with the Secretary of State, shall prepare for 
fiscal year 1998 (and revise as necessary for subsequent fiscal 
years) a riverine counter-drug plan involving the governments 
named in subsection (b) to which support will be provided under 
this section. The plan for a fiscal year shall include the 
following with respect to each government to receive support 
under this section:
            (1) A detailed security assessment, including a 
        discussion of the threat posed by illicit drug 
        traffickers in the foreign country.
            (2) An evaluation of previous and ongoing riverine 
        counter-drug operations by the government.
            (3) An assessment of the monitoring of past and 
        current assistance provided by the United States under 
        this section to the government to ensure the 
        appropriate use of such assistance.
            (4) A description of the centralized management and 
        coordination among Federal agencies involved in the 
        development and implementation of the plan.
            (5) A description of the roles and missions and 
        coordination among agencies of the government involved 
        in the development and implementation of the plan.
            (6) A description of the resources to be 
        contributed by the Department of Defense and the 
        Department of State for the fiscal year or years 
        covered by the plan and the manner in which such 
        resources will be utilized under the plan.
            (7) For the first fiscal year in which support is 
        to be provided under this section, a schedule for 
        establishing a riverine counter-drug program that can 
        be sustained by the government within five years, and 
        for subsequent fiscal years, a description of the 
        progress made in establishing and carrying out the 
        program.
            (8) A reporting system to measure the effectiveness 
        of the riverine counter-drug program.
            (9) A detailed discussion of how the riverine 
        counter-drug program supports the national drug control 
        strategy of the United States.

SEC. 1034. ANNUAL REPORT ON DEVELOPMENT AND DEPLOYMENT OF NARCOTICS 
                    DETECTION TECHNOLOGIES.

    (a) Report Requirement.--Not later than December 1st of 
each year, the Director of the Office of National Drug Control 
Policy shall submit to Congress and the President a report on 
the development and deployment of narcotics detection 
technologies by Federal agencies. Each such report shall be 
prepared in consultation with the Secretary of Defense, the 
Secretary of State, the Secretary of Transportation, and the 
Secretary of the Treasury.
    (b) Matters To Be Included.--Each report under subsection 
(a) shall include--
            (1) a description of each project implemented by a 
        Federal agency relating to the development or 
        deployment of narcotics detection technology;
            (2) the agency responsible for each project 
        described in paragraph (1);
            (3) the amount of funds obligated or expended to 
        carry out each project described in paragraph (1) 
        during the fiscal year in which the report is submitted 
        or during any fiscal year preceding the fiscal year in 
        which the report is submitted;
            (4) the amount of funds estimated to be obligated 
        or expended for each project described in paragraph (1) 
        during any fiscal year after the fiscal year in which 
        the report is submitted to Congress; and
            (5) a detailed timeline for implementation of each 
        project described in paragraph (1).

       Subtitle D--Miscellaneous Report Requirements and Repeals

SEC. 1041. REPEAL OF MISCELLANEOUS REPORTING REQUIREMENTS.

    (a) Requirement for Notice of Conversion of Certain Heating 
Systems at Installations in Europe.--Section 2690(b) of title 
10, United States Code, is amended by striking out ``unless the 
Secretary--'' and all that follows and inserting in lieu 
thereof the following: ``unless the Secretary determines that 
the conversion--
            ``(1) is required by the government of the country 
        in which the facility is located; or
            ``(2) is cost-effective over the life cycle of the 
        facility.''.
    (b) Report on Availability of Suitable Alternative 
Housing.--Section 2823 of title 10, United States Code, is 
amended--
            (1) by striking out subsection (b); and
            (2) by redesignating subsections (c) and (d) as 
        subsections (b) and (c), respectively.
    (c) Report on Stretchout of Major Defense Acquisition 
Programs.--Section 117 of the National Defense Authorization 
Act, Fiscal Year 1989 (Public Law 100-456; 102 Stat. 1933; 10 
U.S.C. 2431 note), is repealed.
    (d) Elimination of Requirement for Quarterly Report 
Concerning Travel Funding for Chemical Demilitarization 
Citizens' Advisory Commissioners.--(1) Section 1412(g) of the 
National Defense Authorization Act for Fiscal Year 1986 (50 
U.S.C. 1521(g)) is amended--
            (A) by striking out paragraph (3);
            (B) by striking out the last sentence of paragraph 
        (4); and
            (C) by redesignating paragraph (4) (as so amended) 
        as paragraph (3).
    (2) Section 153(b) of the National Defense Authorization 
Act for Fiscal Year 1996 (50 U.S.C. 1521 note) is amended--
            (A) by striking out ``Quarterly'' in the heading; 
        and
            (B) by striking out paragraphs (4) and (5).

SEC. 1042. STUDY OF TRANSFER OF MODULAR AIRBORNE FIRE FIGHTING SYSTEM.

    Not later than six months after the date of the enactment 
of this Act, the Secretary of Defense, in consultation with the 
Secretary of Agriculture, shall submit to Congress a report 
evaluating the feasibility of transferring jurisdiction over 
units of the Modular Airborne Fire Fighting System from the 
Department of Agriculture to the Department of Defense.

SEC. 1043. OVERSEAS INFRASTRUCTURE REQUIREMENTS.

    (a) Findings.--Congress makes the following findings:
            (1) United States military forces have been 
        withdrawn from the Philippines.
            (2) United States military forces are to be 
        withdrawn from Panama by 2000.
            (3) There continues to be local opposition to the 
        continued presence of United States military forces in 
        Okinawa.
            (4) The Quadrennial Defense Review lists ``the loss 
        of U.S. access to critical facilities and lines of 
        communication in key regions'' as one of the so-called 
        ``wild card'' scenarios covered in the review.
            (5) The National Defense Panel states that ``U.S. 
        forces' long-term access to forward bases, to include 
        air bases, ports, and logistics facilities, cannot be 
        assumed''.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the President should develop alternatives to 
        the current arrangement for forward basing of the Armed 
        Forces outside the United States, including 
        alternatives to the existing infrastructure for forward 
        basing of forces and alternatives to the existing 
        international agreements that provide for basing of 
        United States forces in foreign countries; and
            (2) because the Pacific Rim continues to emerge as 
        a region of significant economic and military 
        importance to the United States, a continued presence 
        of the Armed Forces in that region is vital to the 
        capability of the United States to timely protect its 
        interests in the region.
    (c) Report Required.--Not later than March 31, 1998, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the overseas 
infrastructure requirements of the Armed Forces.
    (d) Content.--The report shall contain the following:
            (1) The quantity and types of forces that the 
        United States must station in each region of the world 
        in order to support the current national military 
        strategy of the United States.
            (2) The quantity and types of forces that the 
        United States will need to station in each region of 
        the world in order to meet the expected or potential 
        future threats to the national security interests of 
        the United States.
            (3) The requirements for access to, and use of, air 
        space and ground maneuver areas in each such region for 
        training for the quantity and types of forces 
        identified for the region pursuant to paragraphs (1) 
        and (2).
            (4) A list of the international agreements, 
        currently in force, that the United States has entered 
        into with foreign countries regarding the basing of 
        United States forces in those countries and the dates 
        on which the agreements expire.
            (5) A discussion of any anticipated political 
        opposition or other opposition to the renewal of any of 
        those international agreements.
            (6) A discussion of future overseas basing 
        requirements for United States forces, taking into 
        account expected changes in national security strategy, 
        national security environment, and weapons systems.
            (7) The expected costs of maintaining the overseas 
        infrastructure for foreign based forces of the United 
        States, including the costs of constructing any new 
        facilities that will be necessary overseas to meet 
        emerging requirements relating to the national security 
        interests of the United States.
    (e) Form of Report.--The report may be submitted in a 
classified or unclassified form.

SEC. 1044. ADDITIONAL MATTERS FOR ANNUAL REPORT ON ACTIVITIES OF THE 
                    GENERAL ACCOUNTING OFFICE.

    Section 719(b) of title 31, United States Code, is amended 
by adding at the end the following:
    ``(3) The report under subsection (a) shall also include a 
statement of the staff hours and estimated cost of work 
performed on audits, evaluations, investigations, and related 
work during each of the three fiscal years preceding the fiscal 
year in which the report is submitted, stated separately for 
each division of the General Accounting Office by category as 
follows:
            ``(A) A category for work requested by the chairman 
        of a committee of Congress, the chairman of a 
        subcommittee of such a committee, or any other Member 
        of Congress.
            ``(B) A category for work required by law to be 
        performed by the Comptroller General.
            ``(C) A category for work initiated by the 
        Comptroller General in the performance of the 
        Comptroller General's general responsibilities.''.

SEC. 1045. EYE SAFETY AT SMALL ARMS FIRING RANGES.

    (a) Actions Required.--The Secretary of the Defense shall--
            (1) conduct a study of eye safety at small arms 
        firing ranges of the Armed Forces; and
            (2) develop for the use of the Armed Forces a 
        protocol for reporting eye injuries incurred in small 
        arms firing activities at the ranges.
    (b) Agency Tasking.--The Secretary may delegate authority 
to carry out the responsibilities set forth in subsection (a) 
to the United States Army Center for Health Promotion and 
Preventive Medicine or any other element of the Department of 
Defense that the Secretary considers well qualified to carry 
out those responsibilities.
    (c) Content of Study.--The study under subsection (a)(1) 
shall include the following:
            (1) An evaluation of the existing policies, 
        procedures, and practices of the Armed Forces regarding 
        medical surveillance of eye injuries resulting from 
        weapons fire at the small arms ranges.
            (2) An examination of the existing policies, 
        procedures, and practices of the Armed Forces regarding 
        reporting on vision safety issues resulting from 
        weapons fire at the small arms ranges.
            (3) Determination of rates of eye injuries, and 
        trends in eye injuries, resulting from weapons fire at 
        the small arms ranges.
            (4) An evaluation of the costs and benefits of a 
        requirement for use of eye protection devices by all 
        personnel firing small arms at the ranges.
    (d) Report.--The Secretary shall submit a report on the 
activities required under this section to the Committees on 
Armed Services and on Veterans' Affairs of the Senate and the 
Committees on National Security and on Veterans' Affairs of the 
House of Representatives. The report shall include--
            (1) the findings resulting from the study under 
        paragraph (1) of subsection (a); and
            (2) the protocol developed under paragraph (2) of 
        such subsection.
    (e) Schedule.--(1) The Secretary shall ensure that the 
study is commenced not later than January 1, 1998, and is 
completed not later than six months after the date on which it 
is commenced.
    (2) The Secretary shall submit the report required under 
subsection (d) not later than 30 days after the completion of 
the study.

SEC. 1046. REPORTS ON DEPARTMENT OF DEFENSE PROCEDURES FOR 
                    INVESTIGATING MILITARY AVIATION ACCIDENTS AND FOR 
                    NOTIFYING AND ASSISTING FAMILIES OF VICTIMS.

    (a) Report on Aviation Accident Investigation Procedures.--
Not later than February 1, 1998, the Secretary of Defense shall 
submit to Congress a report on the advisability of establishing 
a process for investigating Department of Defense aviation 
accidents that combines accident investigation with safety 
investigation into a single, public investigation process, 
similar to the accident investigation process of the National 
Transportation Safety Board. The report shall include a 
discussion of the advantages and disadvantages of adopting such 
an investigation process.
    (b) Report on Family Assistance.--Not later than April 2, 
1998, the Secretary of Defense shall submit to Congress a 
report on assistance provided by the Department of Defense to 
families of casualties among military and civilian personnel of 
the department in the case of aviation accidents involving such 
personnel. The report shall include--
            (1) a discussion of the adequacy and effectiveness 
        of the family notification procedures of the Department 
        of Defense, including the procedures of the military 
        departments; and
            (2) a description of the assistance provided to 
        members of the families of such personnel.
    (c) Report by Department of Defense Inspector General.--Not 
later than December 1, 1997, the Inspector General of the 
Department of Defense shall review the procedures of the 
Federal Aviation Administration and the National Transportation 
Safety Board for providing information and assistance to 
members of families of casualties of nonmilitary aviation 
accidents and shall submit to Congress a report on the review. 
The report shall include a discussion of the following:
            (1) Designation of an experienced non-profit 
        organization to provide assistance in meeting the needs 
        of families of accident casualties.
            (2) An assessment of the system and procedures for 
        providing families with information on accidents and 
        accident investigations.
            (3) Protection of members of families from unwanted 
        solicitations relating to the accident.
            (4) A recommendation regarding whether the 
        procedures reviewed (including the matters discussed 
        under paragraphs (1), (2), and (3)) or similar 
        procedures should be adopted by the Department of 
        Defense for use by the Department in providing 
        information and assistance to members of families of 
        casualties of military aviation accidents and, if the 
        recommendation is not to adopt such procedures, a 
        detailed justification for the recommendation.
    (d) Unclassified Form of Reports.--The reports under this 
section shall be submitted in unclassified form.

               Subtitle E--Matters Relating to Terrorism

SEC. 1051. OVERSIGHT OF COUNTERTERRORISM AND ANTITERRORISM ACTIVITIES; 
                    REPORT.

    (a) Oversight of Counterterrorism and Antiterrorism 
Activities.--Not later than 120 days after the date of the 
enactment of this Act, the Director of the Office of Management 
and Budget shall--
            (1) establish a reporting system for executive 
        agencies with respect to the budget and expenditure of 
        funds by such agencies for the purpose of carrying out 
        counterterrorism and antiterrorism programs and 
        activities; and
            (2) using such reporting system, collect 
        information on--
                    (A) the budget and expenditure of funds by 
                executive agencies during the current fiscal 
                year for purposes of carrying out 
                counterterrorism and antiterrorism programs and 
                activities; and
                    (B) the specific programs and activities 
                for which such funds were expended.
    (b) Report.--Not later than March 1 of each year, the 
President shall submit to Congress a report in classified and 
unclassified form (using the information described in 
subsection (a)(2)) describing, for each executive agency and 
for the executive branch as a whole, the following:
            (1) The amounts proposed to be expended for 
        counterterrorism and antiterrorism programs and 
        activities for the fiscal year beginning in the 
        calendar year in which the report is submitted.
            (2) The amounts proposed to be expended for 
        counterterrorism and antiterrorism programs and 
        activities for the fiscal year in which the report is 
        submitted and the amounts that have already been 
        expended for such programs and activities for that 
        fiscal year.
            (3) The specific counterterrorism and antiterrorism 
        programs and activities being implemented, any 
        priorities with respect to such programs and 
        activities, and whether there has been any duplication 
        of efforts in implementing such programs and 
        activities.

SEC. 1052. PROVISION OF ADEQUATE TROOP PROTECTION EQUIPMENT FOR ARMED 
                    FORCES PERSONNEL ENGAGED IN PEACE OPERATIONS; 
                    REPORT ON ANTITERRORISM ACTIVITIES AND PROTECTION 
                    OF PERSONNEL.

    (a) Protection of Personnel.--The Secretary of Defense 
shall take appropriate actions to ensure that units of the 
Armed Forces engaged in a peace operation are provided adequate 
troop protection equipment for that operation.
    (b) Specific Actions.--In taking actions under subsection 
(a), the Secretary shall--
            (1) identify the additional troop protection 
        equipment, if any, required to equip a division (or the 
        equivalent of a division) with adequate troop 
        protection equipment for peace operations; and
            (2) establish procedures to facilitate the exchange 
        or transfer of troop protection equipment among units 
        of the Armed Forces.
    (c) Designation of Responsible Official.--The Secretary of 
Defense shall designate an official within the Department of 
Defense to be responsible for--
            (1) ensuring the appropriate allocation of troop 
        protection equipment among the units of the Armed 
        Forces engaged in peace operations; and
            (2) monitoring the availability, status or 
        condition, and location of such equipment.
    (d) Troop Protection Equipment Defined.--In this section, 
the term ``troop protection equipment'' means the equipment 
required by units of the Armed Forces to defend against any 
hostile threat that is likely during a peace operation, 
including an attack by a hostile crowd, small arms fire, mines, 
and a terrorist bombing attack.
    (e) Report on Antiterrorism Activities of the Department of 
Defense and Protection of Personnel.--Not later than 120 days 
after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress a report, in classified and 
unclassified form, on antiterrorism activities of the 
Department of Defense and the actions taken by the Secretary 
under subsections (a), (b) and (c). The report shall include 
the following:
            (1) A description of the programs designed to carry 
        out antiterrorism activities of the Department of 
        Defense, any deficiencies in those programs, and any 
        actions taken by the Secretary to improve 
        implementation of such programs.
            (2) An assessment of the current policies and 
        practices of the Department of Defense with respect to 
        the protection of members of the Armed Forces overseas 
        against terrorist attack, including any modifications 
        to such policies or practices that are proposed or 
        implemented as a result of the assessment.
            (3) An assessment of the procedures of the 
        Department of Defense for determining accountability, 
        if any, in the command structure of the Armed Forces in 
        instances in which a terrorist attack results in the 
        loss of life at an overseas military installation or 
        facility.
            (4) A detailed description of the roles of the 
        Office of the Secretary of Defense, the Chairman of the 
        Joint Chiefs of Staff, the Secretaries of the military 
        departments, and the combatant commanders in providing 
        guidance and support with respect to the protection of 
        members of the Armed Forces deployed overseas against 
        terrorist attack (both before and after the November, 
        1995 bombing in Riyadh, Saudi Arabia) and how these 
        roles have changed since the June 25, 1996, terrorist 
        bombing at Khobar Towers in Dhahran, Saudi Arabia.
            (5) A description of the actions taken by the 
        Secretary of Defense under subsections (a), (b), and 
        (c) to provide adequate troop protection equipment for 
        units of the Armed Forces engaged in a peace operation.

            Subtitle F--Matters Relating to Defense Property

SEC. 1061. LEASE OF NONEXCESS PERSONAL PROPERTY OF MILITARY 
                    DEPARTMENTS.

    (a) Receipt of Fair Market Value.--Subsection (b)(4) of 
section 2667 of title 10, United States Code, is amended by 
striking out ``, in the case of the lease of real property,''.
    (b) Competitive Selection.--Such section is further 
amended--
            (1) by redesignating subsection (g) as subsection 
        (h); and
            (2) by inserting after subsection (f) the following 
        new subsection:
    ``(g)(1) If a proposed lease under subsection (a) involves 
only personal property, the lease term exceeds one year, and 
the fair market value of the lease interest exceeds $100,000, 
as determined by the Secretary concerned, the Secretary shall 
use competitive procedures to select the lessee.
    ``(2) Not later than 45 days before entering into a lease 
described in paragraph (1), the Secretary concerned shall 
submit to Congress written notice describing the terms of the 
proposed lease and the competitive procedures used to select 
the lessee.''.
    (c) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 2667. Leases: non-excess property of military departments''.

    (2) The table of sections at the beginning of chapter 159 
of title 10, United States Code, is amended by striking out the 
item relating to section 2667 and inserting in lieu thereof the 
following new item:

``2667. Leases: non-excess property of military departments.''.

    (d) Conforming Amendment.--Section 2490a(f)(2) of title 10, 
United States Code, is amended by striking out ``section 
2667(g)'' and inserting in lieu thereof ``section 2667(h)''.

SEC. 1062. LEASE OF NONEXCESS PROPERTY OF DEFENSE AGENCIES.

    (a) Lease Authority.--Chapter 159 of title 10, United 
States Code, is amended by inserting after section 2667 the 
following new section:

``Sec. 2667a. Leases: non-excess property of Defense Agencies

    ``(a) Lease Authority.--Whenever the Secretary of Defense 
considers it advantageous to the United States, the Secretary 
may lease to such lessee and upon such terms as the Secretary 
considers will promote the national defense or to be in the 
public interest, personal property that is--
            ``(1) under the control of a Defense Agency;
            ``(2) not for the time needed for public use; and
            ``(3) not excess property, as defined by section 3 
        of the Federal Property and Administrative Services Act 
        of 1949 (40 U.S.C. 472).
    ``(b) Limitation, Terms, and Conditions.--A lease under 
subsection (a)--
            ``(1) may not be for more than five years unless 
        the Secretary of Defense determines that a lease for a 
        longer period will promote the national defense or be 
        in the public interest;
            ``(2) may give the lessee the first right to buy 
        the property if the lease is revoked to allow the 
        United States to sell the property under any other 
        provision of law;
            ``(3) shall permit the Secretary to revoke the 
        lease at any time, unless the Secretary determines that 
        the omission of such a provision will promote the 
        national defense or be in the public interest;
            ``(4) shall provide for the payment (in cash or in 
        kind) by the lessee of consideration in an amount that 
        is not less than the fair market value of the lease 
        interest, as determined by the Secretary; and
            ``(5) may provide, notwithstanding any other 
        provision of law, for the improvement, maintenance, 
        protection, repair, restoration, or replacement by the 
        lessee, of the property leased as the payment of part 
        or all of the consideration for the lease.
    ``(c) Competitive Selection.--(1) If the term of a proposed 
lease under subsection (a) exceeds one year and the fair market 
value of the lease interest exceeds $100,000, as determined by 
the Secretary of Defense, the Secretary shall use competitive 
procedures to select the lessee.
    ``(2) Not later than 45 days before entering into a lease 
described in paragraph (1), the Secretary shall submit to 
Congress a written notice describing the terms of the proposed 
lease and the competitive procedures used to select the lessee.
    ``(d) Disposition of Money Rent.--Money rentals received 
pursuant to a lease entered into by the Secretary of Defense 
under subsection (a) shall be deposited in a special account in 
the Treasury established for the Defense Agency whose property 
is subject to the lease. Amounts in a Defense Agency's special 
account shall be available, to the extent provided in 
appropriations Acts, solely for the maintenance, repair, 
restoration, or replacement of the leased property.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2667 the following new item:

``2667a. Leases: non-excess property of Defense Agencies.''.

SEC. 1063. DONATION OF EXCESS CHAPEL PROPERTY TO CHURCHES DAMAGED OR 
                    DESTROYED BY ARSON OR OTHER ACTS OF TERRORISM.

    (a) Authority to Donate.--Chapter 153 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 2580. Donation of excess chapel property

    ``(a) Authority to Donate.--The Secretary of a military 
department may donate personal property specified in subsection 
(b) to an organization described in section 501(c)(3) of the 
Internal Revenue Code of 1986 that is a religious organization 
in order to assist the organization in restoring or replacing 
property of the organization that has been damaged or destroyed 
as a result of an act of arson or terrorism, as determined 
pursuant to procedures prescribed by the Secretary of Defense.
    ``(b) Property Covered.--(1) The property authorized to be 
donated under subsection (a) is furniture and other personal 
property that--
            ``(A) is in, or was formerly in, a chapel under the 
        jurisdiction of the Secretary of a military department 
        and closed or being closed; and
            ``(B) is determined by the Secretary to be excess 
        to the requirements of the armed forces.
    ``(2) No real property may be donated under this section.
    ``(c) Donees Not To Be Charged.--No charge may be imposed 
by the Secretary of a military department on a donee of 
property under this section in connection with the donation. 
However, the donee shall agree to defray any expense for 
shipping or other transportation of property donated under this 
section from the location of the property when donated to any 
other location.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2580. Donation of excess chapel property.''.

SEC. 1064. AUTHORITY OF THE SECRETARY OF DEFENSE CONCERNING DISPOSAL OF 
                    ASSETS UNDER COOPERATIVE AGREEMENTS ON AIR DEFENSE 
                    IN CENTRAL EUROPE.

    (a) General Authorities.--The Secretary of Defense, 
pursuant to an amendment or amendments to the European air 
defense agreements, may dispose of any defense articles owned 
by the United States and acquired to carry out such agreements 
by providing such articles to the Federal Republic of Germany. 
In carrying out such disposal, the Secretary--
            (1) may provide without monetary charge to the 
        Federal Republic of Germany articles specified in the 
        agreements; and
            (2) may accept from the Federal Republic of Germany 
        (in exchange for the articles provided under paragraph 
        (1)) articles, services, or any other consideration, as 
        determined appropriate by the Secretary.
    (b) Definition of European Air Defense Agreements.--For the 
purposes of this section, the term ``European air defense 
agreements'' means--
            (1) the agreement entitled ``Agreement between the 
        Secretary of Defense of the United States of America 
        and the Minister of Defense of the Federal Republic of 
        Germany on Cooperative Measures for Enhancing Air 
        Defense for Central Europe'', signed on December 6, 
        1983; and
            (2) the agreement entitled ``Agreement between the 
        Secretary of Defense of the United States of America 
        and the Minister of Defense of the Federal Republic of 
        Germany in implementation of the 6 December 1983 
        Agreement on Cooperative Measures for Enhancing Air 
        Defense for Central Europe'', signed on July 12, 1984.

SEC. 1065. SALE OF EXCESS, OBSOLETE, OR UNSERVICEABLE AMMUNITION AND 
                    AMMUNITION COMPONENTS.

    (a) Authority.--(1) Chapter 443 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 4687. Sale of excess, obsolete, or unserviceable ammunition and 
                    ammunition components

    ``(a) Authority To Sell Outside DoD.--The Secretary of the 
Army may sell to an eligible purchaser described in subsection 
(c) ammunition or ammunition components that are excess, 
obsolete, or unserviceable and have not been demilitarized if--
            ``(1) the purchaser enters into an agreement, in 
        advance, with the Secretary--
                    ``(A) to demilitarize the ammunition or 
                components; and
                    ``(B) to reclaim, recycle, or reuse the 
                component parts or materials; or
            ``(2) the Secretary, or an official of the 
        Department of the Army designated by the Secretary, 
        approves the use of the ammunition or components 
        proposed by the purchaser as being consistent with the 
        public interest.
    ``(b) Method of Sale.--The Secretary shall use competitive 
procedures to sell ammunition and ammunition components under 
this section, except that the Secretary may use procedures 
other than competitive procedures in any case in which the 
Secretary determines that there is only one potential buyer of 
the items being offered for sale.
    ``(c) Eligible Purchasers.--To be eligible to purchase 
excess, obsolete, or unserviceable ammunition or ammunition 
components under this section, the purchaser shall be a 
licensed manufacturer (as defined in section 921(10) of title 
18) that, as determined by the Secretary, has a capability to 
modify, reclaim, transport, and either store or sell the 
ammunition or ammunition components sought to be purchased.
    ``(d) Hold Harmless Agreement.--The Secretary shall require 
a purchaser of ammunition or ammunition components under this 
section to agree to hold harmless and indemnify the United 
States from any claim for damages for death, injury, or other 
loss resulting from a use of the ammunition or ammunition 
components, except in a case of willful misconduct or gross 
negligence of a representative of the United States.
    ``(e) Verification of Demilitarization.--The Secretary 
shall establish procedures for ensuring that a purchaser of 
ammunition or ammunition components under this section 
demilitarizes the ammunition or ammunition components in 
accordance with any agreement to do so under subsection (a)(1). 
The procedures shall include on-site verification of 
demilitarization activities.
    ``(f) Consideration.--The Secretary may accept ammunition, 
ammunition components, or ammunition demilitarizationservices 
as consideration for ammunition or ammunition components sold under 
this section. The fair market value of any such consideration shall be 
equal to or exceed the fair market value or, if higher, the sale price 
of the ammunition or ammunition components sold.
    ``(g) Relationship to Arms Export Control Act.--Nothing in 
this section shall be construed to affect the applicability of 
section 38 of the Arms Export Control Act (22 U.S.C. 2778) to 
sales of ammunition or ammunition components on the United 
States Munitions List.
    ``(h) Definitions.--In this section:
            ``(1) The term `excess, obsolete, or 
        unserviceable', with respect to ammunition or 
        ammunition components, means that the ammunition or 
        ammunition components are no longer necessary for war 
        reserves or for support of training of the Army or 
        production of ammunition or ammunition components.
            ``(2) The term `demilitarize', with respect to 
        ammunition or ammunition components--
                    ``(A) means to destroy the military 
                offensive or defensive advantages inherent in 
                the ammunition or ammunition components; and
                    ``(B) includes any mutilation, scrapping, 
                melting, burning, or alteration that prevents 
                the use of the ammunition or ammunition 
                components for the military purposes for which 
                the ammunition or ammunition components was 
                designed or for a lethal purpose.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``4687. Sale of excess, obsolete, or unserviceable ammunition and 
          ammunition components.''.

    (b) Review of Initial Sales.--(1) For each of the first 
three fiscal years during which the Secretary of the Army sells 
ammunition or ammunition components under the authority of 
section 4687 of title 10, United States Code, as added by 
subsection (a), the Director of the Army Audit Agency shall 
conduct a review of sales under such section to ensure that--
            (A) purchasers that enter into an agreement under 
        subsection (a)(1) of such section to demilitarize the 
        purchased ammunition or ammunition components fully 
        comply with the agreement; and
            (B) purchasers that are authorized under subsection 
        (a)(2) of such section to use the purchased ammunition 
        or ammunition components actually use the ammunition or 
        ammunition components in the manner proposed.
    (2) Not later than 180 days after the end of each fiscal 
year in which the review is conducted, the Secretary of the 
Army shall submit to Congress a report containing the results 
of the review for the fiscal year covered by the report.

SEC. 1066. TRANSFER OF B-17 AIRCRAFT TO MUSEUM.

    (a) Authority.--The Secretary of the Air Force may convey, 
without consideration to the Planes of Fame Museum, Chino, 
California (in this section referred to as the ``museum''), all 
right, title, and interest of the United States in and to the 
B-17 aircraft known as the ``Picadilly Lilly'', an aircraft 
that has been in the possession of the museum since 1959. Such 
a conveyance shall be made by means of a conditional deed of 
gift.
    (b) Condition of Aircraft.--The Secretary may not convey 
ownership of the aircraft under subsection (a) until the 
Secretary determines that the museum has altered the aircraft 
in such manner as the Secretary determines necessary to ensure 
that the aircraft does not have any capability for use as a 
platform for launching or releasing munitions or any other 
combat capability that it was designed to have. The Secretary 
is not required to repair or alter the condition of the 
aircraft before conveying ownership of the aircraft.
    (c) Reverter Upon Transfer of Ownership or Possession.--The 
Secretary shall include in the instrument of conveyance of the 
aircraft--
            (1) a condition that the museum not convey any 
        ownership interest in, or transfer possession of, the 
        aircraft to any other party without the prior approval 
        of the Secretary of the Air Force; and
            (2) a condition that if the Secretary of the Air 
        Force determines at any time that the museum has 
        conveyed an ownership interest in, or transferred 
        possession of, the aircraft to any other party without 
        the prior approval of the Secretary, all right, title, 
        and interest in and to the aircraft, including any 
        repair or alteration of the aircraft, shall revert to 
        the United States, and the United States shall have the 
        right of immediate possession of the aircraft.
    (d) Conveyance at No Cost to the United States.--The 
conveyance authorized by this section shall be made at no cost 
to the United States. Any costs associated with such 
conveyance, including costs of determining compliance with 
subsection (b), shall be borne by the museum.
    (e) Additional Terms and Conditions.--The Secretary of the 
Air Force may require such additional terms and conditions in 
connection with the conveyance under this section as the 
Secretary considers appropriate to protect the interests of the 
United States.
    (f) Clarification of Liability.--Notwithstanding any other 
provision of law, upon conveyance of ownership of the B-17 
aircraft specified in subsection (a) to the museum, the United 
States shall not be liable for any death, injury, loss, or 
damage that results from any use of that aircraft by any person 
other than the United States.

SEC. 1067. REPORT ON DISPOSAL OF EXCESS AND SURPLUS MATERIALS.

    (a) Report Required.--Not later than January 31, 1998, the 
Secretary of Defense shall submit to Congress a report on the 
actions that have been taken or are planned to be taken within 
the Department of Defense to address problems with the sale or 
other disposal of materials that are excess or surplus to the 
needs of the Department of Defense.
    (b) Required Content.-- At a minimum, the report shall 
address the following issues:
            (1) The effort to standardize the coding of 
        military equipment for demilitarization at all stages 
        of the process, from initial acquisition through 
        disposal.
            (2) The changes underway to improve the methods 
        used for the demilitarization of military equipment.
            (3) Recent efforts to improve the accuracy of 
        coding performed by Government employees and contractor 
        employees.
            (4) Recent efforts to improve the enforcement of 
        the penalties that are applicable to Government 
        employees and contractor employees who fail to comply 
        with rules or procedures applicable to the 
        demilitarization of military equipment.
            (5) The methods of oversight and enforcement used 
        by the Department of Defense to review the 
        demilitarization of military equipment by the 
        purchasers of the equipment.
            (6) The current and planned controls designed to 
        prevent the inappropriate transfer of excess military 
        equipment outside the United States.
            (7) The current procedures used by the Department, 
        including repurchase, to recover military equipment 
        that is sold or otherwise disposed of without 
        appropriate action having been taken to demilitarize 
        the equipment or to provide for demilitarization of the 
        equipment.
            (8) The legislative changes, if any, that would be 
        necessary to improve the recovery rate under the 
        procedures identified under paragraph (7).
    (c) Identification of Frequent Errors and Misuse.--Based on 
fiscal year 1997 findings, the Secretary of Defense shall 
identify in the report--
            (1) the 50 categories of military equipment that 
        most frequently received an erroneous demilitarization 
        code; and
            (2) the categories of military equipment that are 
        particularly vulnerable to improper use after disposal.

                       Subtitle G--Other Matters

SEC. 1071. AUTHORITY FOR SPECIAL AGENTS OF THE DEFENSE CRIMINAL 
                    INVESTIGATIVE SERVICE TO EXECUTE WARRANTS AND MAKE 
                    ARRESTS.

    (a) Authority.--Chapter 81 of title 10, United States Code, 
is amended by inserting after section 1585 the following new 
section:

``Sec. 1585a. Special agents of the Defense Criminal Investigative 
                    Service: authority to execute warrants and make 
                    arrests

    ``(a) Authority.--The Secretary of Defense may authorize 
any DCIS special agent described in subsection (b)--
            ``(1) to execute and serve any warrant or other 
        process issued under the authority of the United 
        States; and
            ``(2) to make arrests without a warrant--
                    ``(A) for any offense against the United 
                States committed in the presence of that agent; 
                and
                    ``(B) for any felony cognizable under the 
                laws of the United States if the agent has 
                probable cause to believe that the person to be 
                arrested has committed or is committing the 
                felony.
    ``(b) Agents To Have Authority.--Subsection (a) applies to 
any DCIS special agent whose duties include conducting, 
supervising, or coordinating investigations of criminal 
activity in programs and operations of the Department of 
Defense.
    ``(c) Guidelines on Exercise of Authority.--The authority 
provided under subsection (a) shall be exercised in accordance 
with guidelines prescribed by the Inspector General of the 
Department of Defense and approved by the Attorney General and 
any other applicable guidelines prescribed by the Secretary of 
Defense or the Attorney General.
    ``(d) DCIS Special Agent Defined.--In this section, the 
term `DCIS special agent' means an employee of the Department 
of Defense who is a special agent of the Defense Criminal 
Investigative Service (or any successor to that service).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 1585 the following new item:

``1585a. Special agents of the Defense Criminal Investigative Service: 
          authority to execute warrants and make arrests.''.

SEC. 1072. STUDY OF INVESTIGATIVE PRACTICES OF MILITARY CRIMINAL 
                    INVESTIGATIVE ORGANIZATIONS RELATING TO SEX CRIMES.

    (a) Independent Study Required.--(1) The Secretary of 
Defense shall provide for an independent study of the policies, 
procedures, and practices of the military criminal 
investigative organizations for the conduct of investigations 
of complaints of sex crimes and other criminal sexual 
misconduct arising in the Armed Forces.
    (2) The Secretary shall provide for the study to be 
conducted by the National Academy of Public Administration. The 
amount of a contract for the study may not exceed $2,000,000.
    (3) The Secretary shall require that all components of the 
Department of Defense cooperate fully with the organization 
carrying out the study.
    (b) Matters To Be Included in Study.--The Secretary shall 
require that the organization conducting the study under this 
section specifically consider each of the following matters:
            (1) The need (if any) for greater organizational 
        independence and autonomy for the military criminal 
        investigative organizations than exists under current 
        chain-of-command structures within the military 
        departments.
            (2) The authority of each of the military criminal 
        investigative organizations to investigate allegations 
        of sex crimes and other criminal sexual misconduct and 
        the policies of those organizations for carrying out 
        such investigations.
            (3) The training (including training in skills and 
        techniques related to the conduct of interviews) 
        provided byeach of those organizations to agents or 
prospective agents responsible for conducting or providing support to 
investigations of alleged sex crimes and other criminal sexual 
misconduct, including--
                    (A) the extent to which that training is 
                comparable to the training provided by the 
                Federal Bureau of Investigation and other 
                civilian law enforcement agencies; and
                    (B) the coordination of training and 
                investigative policies related to alleged sex 
                crimes and other criminal sexual misconduct of 
                each of those organizations with the Federal 
                Bureau of Investigation and other civilian 
                Federal law enforcement agencies.
            (4) The procedures and relevant professional 
        standards of each military criminal investigative 
        organization with regard to recruitment and hiring of 
        agents, including an evaluation of the extent to which 
        those procedures and standards provide for--
                    (A) sufficient screening of prospective 
                agents based on background investigations; and
                    (B) obtaining sufficient information about 
                the qualifications and relevant experience of 
                prospective agents.
            (5) The advantages and disadvantages of 
        establishing, within each of the military criminal 
        investigative organizations or within the Defense 
        Criminal Investigative Service only, a special unit for 
        the investigation of alleged sex crimes and other 
        criminal sexual misconduct.
            (6) The clarity of guidance for, and consistency of 
        investigative tactics used by, each of the military 
        criminal investigative organizations for the 
        investigation of alleged sex crimes and other criminal 
        sexual misconduct, together with a comparison with the 
        guidance and tactics used by the Federal Bureau of 
        Investigation and other civilian law enforcement 
        agencies for such investigations.
            (7) The number of allegations of agent misconduct 
        in the investigation of sex crimes and other criminal 
        sexual misconduct for each of those organizations, 
        together with a comparison with the number of such 
        allegations concerning agents of the Federal Bureau of 
        Investigation and other civilian law enforcement 
        agencies for such investigations.
            (8) The procedures of each of the military criminal 
        investigative organizations for administrative 
        identification (known as ``titling'') of persons 
        suspected of committing sex crimes or other criminal 
        sexual misconduct, together with a comparison with the 
        comparable procedures of the Federal Bureau of 
        Investigation and other civilian Federal law 
        enforcement agencies for such investigations.
            (9) The accuracy, timeliness, and completeness of 
        reporting of sex crimes and other criminal sexual 
        misconduct by each of the military criminal 
        investigative organizations to the National Crime 
        Information Center maintained by the Department of 
        Justice.
            (10) Any recommendation for legislation or 
        administrative action to revise the organizational or 
        operational arrangements of the military criminal 
        investigative organizations or to alter recruitment, 
        training, or operational procedures, as they pertain to 
        the investigation of sex crimes and other criminal 
        sexual misconduct.
    (c) Report.--(1) The Secretary of Defense shall require the 
organization conducting the study under this section to submit 
to the Secretary a report on the study not later than one year 
after the date of the enactment of this Act. The organization 
shall include in the report its findings and conclusions 
concerning each of the matters specified in subsection (b).
    (2) The Secretary shall submit the report under paragraph 
(1), together with the Secretary's comments on the report, to 
Congress not later than 30 days after the date on which the 
report is submitted to the Secretary under paragraph (1).
    (d) Military Criminal Investigative Organization Defined.--
For the purposes of this section, the term ``military criminal 
investigative organization'' means any of the following:
            (1) The Army Criminal Investigation Command.
            (2) The Naval Criminal Investigative Service.
            (3) The Air Force Office of Special Investigations.
            (4) The Defense Criminal Investigative Service.
    (e) Criminal Sexual Misconduct Defined.--For the purposes 
of this section, the term ``criminal sexual misconduct'' means 
conduct by a member of the Armed Forces involving sexual abuse, 
sexual harassment, or other sexual misconduct that constitutes 
an offense under the Uniform Code of Military Justice.

SEC. 1073. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States 
Code, is amended as follows:
            (1) The tables of chapters at the beginning of 
        subtitle A, and at the beginning of part I of subtitle 
        A, are each amended by striking out ``471'' in the item 
        relating to chapter 23 and inserting in lieu thereof 
        ``481''.
            (2) The tables of chapters at the beginning of 
        subtitle A, and at the beginning of part IV of subtitle 
        A, are each amended by striking out ``2540'' in the 
        item relating to chapter 152 and inserting in lieu 
        thereof ``2541''.
            (3) Section 116(b)(2) is amended by striking out 
        ``such subsection'' and inserting in lieu thereof 
        ``subsection (a)''.
            (4) Section 129c(e)(1) is amended by striking out 
        ``section 115a(g)(2)'' and inserting in lieu thereof 
        ``section 115a(e)(2)''.
            (5) Section 193(d)(1) is amended by striking out 
        ``performs'' and inserting in lieu thereof ``perform''.
            (6) Section 382(g) is amended by striking out ``the 
        date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 1997'' and inserting 
        in lieu thereof ``September 23, 1996''.
            (7) Section 443(b)(1) is amended by striking out 
        the period at the end and inserting in lieu thereof a 
        semicolon.
            (8) Section 445 is amended--
                    (A) by striking out ``(1)'' before ``Except 
                with'';
                    (B) by redesignating subparagraphs (A), 
                (B), and (C) as paragraphs (1), (2), and (3), 
                respectively;
                    (C) by striking out ``(2)'' before 
                ``Whenever it appears'' and inserting in lieu 
                thereof ``(b) Injunctive Relief.--''; and
                    (D) by striking out ``paragraph (1)'' and 
                inserting in lieu thereof ``subsection (a)''.
            (9) Section 858b(a)(1) is amended in the first 
        sentence by striking out ``forfeiture'' and all that 
        follows through ``due that member'' and inserting in 
        lieu thereof ``forfeiture of pay, or of pay and 
        allowances, due that member''.
            (10) The item relating to section 895 (article 95) 
        in the table of sections at the beginning of subchapter 
        X of chapter 47 is amended by striking out ``Art.''.
            (11) Section 943(c) is amended--
                    (A) by capitalizing the initial letter of 
                the third word of the subsection heading;
                    (B) in the second sentence, by striking out 
                ``Court'' and inserting in lieu thereof 
                ``court''; and
                    (C) in the third sentence, by striking out 
                ``such positions'' and inserting in lieu 
                thereof ``positions referred to in the 
                preceding sentences''.
            (12) Section 954 is amended by striking out 
        ``this'' and inserting in lieu thereof ``his''.
            (13) Section 971(b)(4) is amended by capitalizing 
        the first letter of the fifth and sixth words.
            (14) Section 972(b) is amended by striking out 
        ``the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 1996'' in the matter 
        preceding paragraph (1) and inserting in lieu thereof 
        ``February 10, 1996''.
            (15) Section 976(f) is amended by striking out 
        ``shall,'' and all that follows and inserting in lieu 
        thereof ``shall be fined under title 18 or imprisoned 
        not more than 5 years, or both, except that, in the 
        case of an organization (as defined in section 18 of 
        such title), the fine shall not be less than 
        $25,000.''.
            (16) Section 977 is amended--
                    (A) in subsection (c), by striking out 
                ``Beginning on October 1, 1996, not more than'' 
                and inserting in lieu thereof ``Not more 
                than''; and
                    (B) in subsection (d)(2), by striking out 
                ``before October 1, 1996,'' and all that 
                follows through ``so assigned'' the second 
                place it appears.
            (17) Section 1078a(g)(4)(B)(iii)(II) is amended by 
        striking out ``section 1447(8)'' and inserting in lieu 
        thereof ``section 1447(13)''.
            (18) Section 1129(c) is amended--
                    (A) by striking out ``the date of the 
                enactment of this section,'' and inserting in 
                lieu thereof ``November 30, 1993,''; and
                    (B) by striking out ``before the date of 
                the enactment of this section or'' and 
                inserting in lieu thereof ``before such date 
                or''.
            (19) Section 1151(b) is amended by capitalizing the 
        first letter of the second word in the subsection 
        heading.
            (20) Section 1152(g) is amended by inserting 
        ``(1)'' before ``The Secretary may''.
            (21) Section 1143(d) is amended by striking out 
        ``section 806(a)(2) of the Military Family Act of 
        1985'' and inserting in lieu thereof ``section 
        1784(a)(2) of this title''.
            (22) Section 1174(a)(1) is amended by striking out 
        ``, 1177,''.
            (23) Section 1406 is amended--
                    (A) by striking out ``3962(b)'' in footnote 
                number 3 in the table in subsection (b)(1) and 
                in footnote number 1 in the table in subsection 
                (c)(1) and inserting in lieu thereof ``3962''; 
                and
                    (B) by striking out ``8962(b)'' in footnote 
                number 3 in the table in subsection (b)(1) and 
                in footnote number 1 in the table in subsection 
                (e)(1) and inserting in lieu thereof ``8962''.
            (24) Section 1408(d) is amended--
                    (A) by decapitalizing the first letter of 
                the fifth word in the subsection heading;
                    (B) by redesignating the second paragraph 
                (6) as paragraph (7); and
                    (C) in paragraph (7), as so redesignated, 
                by striking out ``out-of State'' in 
                subparagraph (A) and inserting in lieu thereof 
                ``out-of-State''.
            (25) Section 1408(g) is amended by decapitalizing 
        the first letter of the second and ninth words in the 
        subsection heading.
            (26) Section 1444a(b) is amended by striking out 
        ``section 1455(c)'' and inserting in lieu thereof 
        ``section 1455(d)(2)''.
            (27) Section 1448 is amended by capitalizing the 
        first letter of the third word of the section heading.
            (28) Section 1451(a)(2) is amended by inserting a 
        period in the paragraph heading before the one-em dash.
            (29) Section 1452 is amended--
                    (A) in subsection (a)(1)(A), by striking 
                out ``providing'' in the matter preceding 
                clause (i) and inserting in lieu thereof 
                ``provided''; and
                    (B) in subsection (e), by striking out 
                ``section 8339(i)'' and ``section 8331(b)'' and 
                inserting in lieu thereof ``section 8339(j)'' 
                and ``section 8341(b)'', respectively.
            (30) Section 1504(i)(1) is amended by striking out 
        ``this subsection'' and inserting in lieu thereof 
        ``this section''.
            (31) Section 1599c(c)(1)(F) is amended by striking 
        out ``Sections 106(f)'' and inserting in lieu thereof 
        ``Sections 106(e)''.
            (32) Section 1613(a) is amended by striking out 
        ``1604'' and inserting in lieu thereof ``1603''.
            (33) Section 1763 is amended--
                    (A) by striking out ``On and after October 
                1, 1993, the Secretary of Defense'' and 
                inserting in lieu thereof ``The Secretary of 
                Defense''; and
                    (B) by striking out ``secretaries'' and 
                inserting in lieu thereof ``Secretaries''.
            (34) Section 1792 is amended--
                    (A) in subsection (a)(1), by striking out 
                the comma after ``implementing''; and
                    (B) in subsection (d)(2), by striking out 
                ``section 1794'' and inserting in lieu thereof 
                ``section 1784''.
            (35) Section 2010(e) is repealed.
            (36) Section 2107a(g) is amended by inserting 
        ``the'' after ``August 1, 1979, as a member of ''.
            (37) Section 2109(c)(1)(A) is amended by striking 
        out ``section 2106(b)(6)'' and inserting in lieu 
        thereof ``section 2104(b)(6)''.
            (38) Section 2114(h) is amended by striking out 
        ``section 2123(e)(1)'' and inserting in lieu thereof 
        ``section 2123(e)''.
            (39) Section 2198(c) is amended by striking out 
        ``identified in'' and all that follows through the 
        period at the end and inserting in lieu thereof ``that 
        is identified under section 2505 of this title as 
        critical for attaining the national security objectives 
        set forth in section 2501(a) of this title.''.
            (40) Section 2249a(a)(1) is amended by striking out 
        ``50 App. 2405(j)'' and inserting in lieu thereof ``50 
        U.S.C. App. 2405(j)(1)(A)''.
            (41) Section 2302d(a)(2) is amended by striking out 
        ``procurement of '' and inserting in lieu thereof 
        ``procurement for the system is estimated to be''.
            (42) Section 2304(c)(5) is amended by striking out 
        ``subsection (j)'' and inserting in lieu thereof 
        ``subsection (k)''.
            (43) Section 2304(f) is amended--
                    (A) in paragraph (1)(B)(iii), by striking 
                out ``(6)(C)'' and inserting in lieu thereof 
                ``(6)(B)''; and
                    (B) in paragraph (6)--
                            (i) by striking out subparagraph 
                        (B); and
                            (ii) by redesignating subparagraph 
                        (C) as subparagraph (B) and in that 
                        subparagraph by striking out 
                        ``paragraph (1)(B)(iv)'' and inserting 
                        in lieu thereof ``paragraph 
                        (1)(B)(iii)''.
            (44) Section 2305a(a) is amended by striking out 
        ``(41 U.S.C.'' and inserting in lieu thereof ``(40 
        U.S.C.''.
            (45) Section 2306(h) is amended by inserting ``for 
        the purchase of property'' after ``Multiyear 
        contracting authority''.
            (46) Section 2306a(a)(5) is amended by striking out 
        ``subsection (b)(1)(B)'' and inserting in lieu thereof 
        ``subsection (b)(1)(C)''.
            (47) Section 2306b is amended by striking out 
        ``this subsection'' in the first sentence of subsection 
        (k) and inserting in lieu thereof ``this section''.
            (48)(A) The heading of section 2306b is amended to 
        read as follows:

``Sec. 2306b. Multiyear contracts: acquisition of property''.

            (B) The item relating to such section in the table 
        of sections at the beginning of chapter 137 is amended 
        to read as follows:

``2306b. Multiyear contracts: acquisition of property.''.

            (49) Section 2315(a) is amended by striking out 
        ``the Information Technology Management Reform Act of 
        1996'' and inserting in lieu thereof ``division E of 
        the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et 
        seq.)''.
            (50) Section 2371a is amended by inserting 
        ``Defense'' before ``Advanced Research Projects 
        Agency''.
            (51) Section 2375(c) is amended--
                    (A) by striking out ``provisions relating 
                to exceptions'' and inserting in lieu thereof 
                ``a provision relating to an exception''; and
                    (B) by striking out ``section 2306a(d)'' 
                and inserting in lieu thereof ``section 
                2306a(b)''.
            (52) Section 2401a(a) is amended by striking out 
        ``leasing of such vehicles'' and inserting in lieu 
        thereof ``such leasing''.
            (53) Section 2491(8) is amended by striking out 
        ``that appears'' and all that follows through the 
        period at the end and inserting in lieu thereof ``that 
        is identified under section 2505 of this title as 
        critical for attaining the national security objectives 
        set forth in section 2501(a) of this title.''.
            (54) Section 2533(a) is amended by striking out the 
        first closing parenthesis after ``41 U.S.C. 10a''.
            (55) Section 2534(b)(3) is amended by striking out 
        ``(a)(3)(A)(ii)'' and inserting in lieu thereof 
        ``(a)(3)(A)(iii)''.
            (56) Section 2554(c)(1) is amended by striking out 
        ``the date of the enactment of this Act'' and inserting 
        in lieu thereof ``September 23, 1996''.
            (57) Section 2645(a)(1)(B) is amended by striking 
        out ``on which'' after ``the date on which''.
            (58) Section 2684(b) is amended by striking out ``, 
        United States Code,''.
            (59) Section 2694(b)(1)(D) is amended by striking 
        out ``executive ageny'' and inserting in lieu thereof 
        ``executive agency''.
            (60) Section 2878(d)(4) is amended by striking out 
        ``11401'' and inserting in lieu thereof ``11411''.
            (61) Section 2885 is amended by striking out ``five 
        years after the date of the enactment of the National 
        Defense Authorization Act for Fiscal Year 1996'' and 
        inserting in lieu thereof ``on February 10, 2001''.
            (62) Sections 4342(a)(10), 6954(a)(10), and 
        9342(a)(10) are amended by striking out ``Marianas'' 
        and inserting in lieu thereof ``Mariana''.
            (63) Section 7606(e) is amended by striking out 
        ``sections'' and inserting in lieu thereof ``section''.
            (64) Section 7902(b)(8) is amended by inserting 
        ``United States'' before ``Geological Survey''.
            (65) Section 8038(e) is amended by striking out 
        ``(1)''.
            (66) The item relating to section 8069 in the table 
        of sections at the beginning of chapter 807 is amended 
        by striking out ``Nurse Corps'' and inserting in lieu 
        thereof ``nurses''.
            (67) Section 12733(3) is amended--
                    (A) by inserting a comma after ``(B)''; and
                    (B) by striking out ``in which the date of 
                the enactment of the National Defense 
                Authorization Act for Fiscal Year 1997 occurs'' 
                and inserting in lieu thereof ``that includes 
                September 23, 1996,''.
            (68) Section 14317(d) is amended by striking out 
        ``section 14314'' in the first sentence and inserting 
        in lieu thereof ``section 14315''.
    (b) Title 37, United States Code.--Section 205(d) of title 
37, United States Code, is amended by striking out the period 
after ``August 1, 1979'' and inserting in lieu thereof a comma.
    (c) Public Law 104-201.--Effective as of September 23, 
1996, and as if included therein as enacted, the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201) is amended as follows:
            (1) Section 324(b)(2) (110 Stat. 2480) is amended 
        by inserting after ``In this subsection'' the 
        following: ``and subsection (c)''.
            (2) Section 367 (110 Stat. 2496) is amended--
                    (A) in subsection (a), by striking out 
                ``Subchapter II of chapter'' and inserting in 
                lieu thereof ``Chapter''; and
                    (B) in subsection (b), by striking out 
                ``subchapter'' and inserting in lieu thereof 
                ``chapter''.
            (3) Section 371(a) (110 Stat. 2499) is amended by 
        striking out ``Section 559(a)(1)'' and inserting in 
        lieu thereof ``Section 559''.
            (4) Section 531(a) (110 Stat. 2517) is amended by 
        inserting ``of title 10, United States Code,'' before 
        ``is amended''.
            (5) Section 614(b)(2)(B) (110 Stat. 2544) is 
        amended by striking out ``the period'' and inserting in 
        lieu thereof ``the semicolon''.
            (6) Section 802(1) (110 Stat. 2604) is amended by 
        striking out ``1995'' in the first quoted matter 
        therein and inserting in lieu thereof ``1996''.
            (7) Section 829(c) (110 Stat. 2612) is amended--
                    (A) in paragraph (2), by striking out 
                ``Section 2502(b)'' and inserting in lieu 
                thereof ``Section 2502(c)''; and
                    (B) by redesignating paragraph (3) as 
                subparagraph (C) of paragraph (2).
            (8) Section 1116(b) (110 Stat. 2686) is amended by 
        striking out ``section 1122'' and inserting in lieu 
        thereof ``section 1111''.
            (9) Section 1606 (110 Stat. 2737) is amended--
                    (A) in subsection (a)(1)--
                            (i) by striking out the comma 
                        before ``or are''; and
                            (ii) by inserting a semicolon after 
                        ``Secretary of Defense'';
                    (B) in subsection (b)(1)(A), by striking 
                out ``Secretary of each'' and inserting in lieu 
                thereof ``secretary of each''; and
                    (C) in subsection (b)(2)(B), by inserting a 
                semicolon after ``Defense''.
    (d) Other Annual Defense Authorization Acts.--
            (1) Effective as of February 10, 1996, and as if 
        included therein as enacted, the National Defense 
        Authorization Act for Fiscal Year 1996 (Public Law 104-
        106) is amended as follows:
                    (A) Section 321(a)(2)(A) (110 Stat. 251) is 
                amended by striking out ``2710(d)'' and 
                inserting in lieu thereof ``2701(d)''.
                    (B) Section 356(d)(3) (110 Stat. 271) is 
                amended by striking out ``or'' after ``to any 
                provision'' and inserting in lieu thereof 
                ``of''.
                    (C) Section 533(b) (110 Stat. 315) is 
                amended by inserting before the period at the 
                end the following: ``and the amendments made by 
                subsection (b), effective as of October 5, 
                1994''.
                    (D) Section 703(b) (110 Stat. 372) is 
                amended by striking out ``Such paragraph'' and 
                inserting in lieu thereof ``Such section''.
                    (E) Section 1501 (110 Stat. 500) is 
                amended--
                            (i) in subsection (d)(1), by 
                        striking out ``337(b)'' and ``2717'' 
                        and inserting in lieu thereof 
                        ``377(b)'' and ``2737'', respectively; 
                        and
                            (ii) in subsection (f)(2), by 
                        inserting ``of the Reserve Officer 
                        Personnel Management Act'' before 
                        ``shall take''.
            (2) The National Defense Authorization Act for 
        Fiscal Year 1993 (Public Law 102-484) is amended as 
        follows:
                    (A) Section 812(c) (10 U.S.C. 1723 note) is 
                amended by inserting ``and Technology'' after 
                ``for Acquisition''.
                    (B) Section 1091(l)(3) (32 U.S.C. 501 note) 
                is amended by striking out ``the day preceding 
                the date of the enactment of this Act'' and 
                inserting in lieu thereof ``October 19, 1994''.
                    (C) Section 4471 (10 U.S.C. 2501 note) is 
                amended by realigning subsection (e) so as to 
                be flush to the left margin.
            (3) Section 807(b)(2)(A) of the National Defense 
        Authorization Act for Fiscal Years 1992 and 1993 
        (Public Law 102-190; 10 U.S.C. 2320 note) is amended by 
        inserting before the period the following: ``and 
        Technology''.
            (4) The National Defense Authorization Act for 
        Fiscal Year 1991 (Public Law 101-510) is amended as 
        follows:
                    (A) Section 1205 (10 U.S.C. 1746 note) is 
                amended by striking out ``Under Secretary of 
                Defense for Acquisition'' each place it appears 
                and inserting in lieu thereof ``Under Secretary 
                of Defense for Acquisition and Technology''.
                    (B) Section 2905 (10 U.S.C. 2687 note) is 
                amended--
                            (i) in subsection (b)(7), by 
                        striking out ``4331'' in subparagraphs 
                        (K)(iii) and (L)(iv)(III) and inserting 
                        in lieu thereof ``4321''; and
                            (ii) in subsection (f)(3), by 
                        striking out ``section 2873(a)'' and 
                        inserting in lieu thereof ``section 
                        2883(a)''.
                    (C) Section 2921 (10 U.S.C. 2687 note) is 
                amended--
                            (i) in subsection (e)(3)(B), by 
                        striking out ``Defense Subcommittees'' 
                        and inserting in lieu thereof 
                        ``Subcommittee on Defense''; and
                            (ii) in subsection (f)(2), by 
                        striking out ``the Committees on Armed 
                        Services of the Senate and House of 
                        Representatives'' and inserting in lieu 
                        thereof ``the Committee on Armed 
                        Services of the Senate and the 
                        Committee on National Security of the 
                        House of Representatives''.
            (5) Section 1121(c) of the National Defense 
        Authorization Act for Fiscal Years 1988 and 1989 
        (Public Law 100-180; 10 U.S.C. 113 note) is amended by 
        striking out ``under this section--'' and all that 
        follow through ``fiscal year 1990'' and inserting in 
        lieu thereof ``under this section may not exceed 5,000 
        during any fiscal year''.
            (6) Section 204(e)(3) of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public 
        Law 100-526; 10 U.S.C. 2687 note) is amended by 
        striking out ``section 2873(a)'' and inserting in lieu 
        thereof ``section 2883(a)''.
    (e) Title 5, United States Code.--Title 5, United States 
Code, is amended as follows:
            (1) Section 5315 is amended--
                    (A) in the item relating to the Chief 
                Information Officer of the Department of the 
                Interior, by inserting ``the'' before 
                ``Interior''; and
                    (B) in the item relating to the Chief 
                Information Officer of the Department of the 
                Treasury, by inserting ``the'' before 
                ``Treasury''.
            (2) Section 5316 is amended by striking out 
        ``Atomic Energy'' after ``Assistant to the Secretary of 
        Defense for'' and inserting in lieu thereof ``Nuclear 
        and Chemical and Biological Defense Programs''.
    (f) Act of August 10, 1956.--Section 3(a)(3) of the Act of 
August 10, 1956 (33 U.S.C. 857a) is amended by striking out 
``1374,''.
    (g) Acquisition Policy Statutes.--
            (1) Section 309 of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 259) is 
        amended by striking out ``and'' at the end of 
        subsection (b)(2).
            (2) The Office of Federal Procurement Policy Act is 
        amended as follows:
                    (A) The item relating to section 27 in the 
                table of contents in section 1(b) is amended to 
                read as follows:

``Sec. 27. Restrictions on disclosing and obtaining contractor bid or 
          proposal information or source selection information.''.

                    (B) Section 6(d) (41 U.S.C. 405(d)) is 
                amended--
                            (i) by striking out the period at 
                        the end of paragraph (5)(J) and 
                        inserting in lieu thereof a semicolon;
                            (ii) by moving paragraph (6) two 
                        ems to the left; and
                            (iii) in paragraph (12), by 
                        striking out ``small business'' and 
                        inserting in lieu thereof ``small 
                        businesses''.
                    (C) Section 35(b)(2) (41 U.S.C. 431(b)(2)) 
                is amended by striking out ``commercial'' and 
                inserting in lieu thereof ``commercially 
                available''.
            (3) Section 6 of the Contract Disputes Act of 1978 
        (41 U.S.C. 605) is amended in subsections (d) and (e) 
        by striking out ``(as in effect on September 30, 
        1995)'' each place it appears.
            (4) Subsections (d)(1) and (e) of section 16 of the 
        Small Business Act (15 U.S.C. 645) are each amended by 
        striking out ``concerns'' and inserting in lieu thereof 
        ``concern''.
    (h) Amendments To Conform Change in Short Title of 
Information Technology Management Reform Act of 1996.--
            (1) Section 20 of the National Institute of 
        Standards and Technology Act (15 U.S.C. 278g-3) is 
        amended in subsections (a)(4) and (b)(2) by striking 
        out ``Information Technology Management Reform Act of 
        1996'' and inserting in lieu thereof ``Clinger-Cohen 
        Act of 1996 (40 U.S.C. 1441)''.
            (2) Section 612(f) of title 28, United States Code, 
        is amended by striking out ``the Information Technology 
        Management Reform Act of 1996'' and inserting in lieu 
        thereof ``division E of the Clinger-Cohen Act of 1996 
        (40 U.S.C. 1401 et seq.)''.
            (3) Section 310(b) of title 38, United States Code, 
        is amended by striking out ``the Information Technology 
        Management Reform Act of 1996'' and inserting in lieu 
        thereof ``division E of the Clinger-Cohen Act of 1996 
        (40 U.S.C. 1401 et seq.)''.
            (4) Section 6(b) of the Computer Security Act of 
        1987 (40 U.S.C. 1441 note) is amended by striking out 
        ``Information Technology Management Reform Act of 
        1996'' and inserting in lieu thereof ``Clinger-Cohen 
        Act of 1996 (40 U.S.C. 1441)''.
            (5) Chapter 35 of title 44, United States Code, is 
        amended--
                    (A) in section 3502(9)--
                            (i) by striking out ``the 
                        Information Technology Management 
                        Reform Act of 1996'' and inserting in 
                        lieu thereof ``the Clinger-Cohen Act of 
                        1996 (40 U.S.C. 1401)''; and
                            (ii) by inserting ``(40 U.S.C. 
                        1452)'' after ``that Act'';
                    (B) in section 3504(h)(2), by striking out 
                ``the Information Technology Management Reform 
                Act of 1996'' and inserting in lieu thereof 
                ``division E of the Clinger-Cohen Act of 1996 
                (40 U.S.C. 1401 et seq.)''; and
                    (C) in sections 3504(g)(2), 3504(g)(3), 
                3504(h)(1)(B), and 3518(d) by striking out 
                ``Information Technology Management Reform Act 
                of 1996'' and inserting in lieu thereof 
                ``Clinger-Cohen Act of 1996 (40 U.S.C. 1441)''.
    (i) Coordination With Other Amendments.--For purposes of 
applying amendments made by provisions of this Act other than 
provisions of this section, this section shall be treated as 
having been enacted immediately before the other provisions of 
this Act.

SEC. 1074. SUSTAINMENT AND OPERATION OF THE GLOBAL POSITIONING SYSTEM.

    (a) Findings.--Congress makes the following findings:
            (1) The Global Positioning System (consisting of a 
        constellation of satellites and associated facilities 
        capable of providing users on earth with a highly 
        precise statement of their location on earth) makes 
        significant contributions to the attainment of the 
        national security and foreign policy goals of the 
        United States, the safety and efficiency of 
        international transportation, and the economic growth, 
        trade, and productivity of the United States.
            (2) The infrastructure for the Global Positioning 
        System (including both space and ground segments of the 
        infrastructure) is vital to the effectiveness of United 
        States and allied military forces and to the protection 
        of the national security interests of the United 
        States.
            (3) In addition to having military uses, the Global 
        Positioning System has essential civil, commercial, and 
        scientific uses.
            (4) As a result of the increasing demand of civil, 
        commercial, and scientific users of the Global 
        Positioning System--
                    (A) there has emerged in the United States 
                a new commercial industry to provide Global 
                Positioning System equipment and related 
                services to the many and varied users of the 
                system; and
                    (B) there have been rapid technical 
                advancements in Global Positioning System 
                equipment and services that have contributed 
                significantly to reductions in the cost of the 
                Global Positioning System and increases in the 
                technical capabilities and availability of the 
                system for military uses.
            (5) It is in the national interest of the United 
        States for the United States--
                    (A) to support continuation of the 
                multiple-use character of the Global 
                Positioning System;
                    (B) to promote broader acceptance and use 
                of the Global Positioning System and the 
                technological standards that facilitate 
                expanded use of the system for civil purposes;
                    (C) to coordinate with other countries to 
                ensure (i) efficient management of the 
                electromagnetic spectrum used by the Global 
                Positioning System, and (ii) protection of that 
                spectrum in order to prevent disruption of 
                signals from the system and interference with 
                that portion of the electromagnetic spectrum 
                used by the system; and
                    (D) to encourage open access in all 
                international markets to the Global Positioning 
                System and supporting equipment, services, and 
                techniques.
    (b) International Cooperation.--Congress urges the 
President to promote the security of the United States and its 
allies, the public safety, and commercial interests by taking 
the following steps:
            (1) Undertaking a coordinated effort within the 
        executive branch to seek to establish the Global 
        Positioning System, and augmentations to the system, as 
        a worldwide resource.
            (2) Seeking to enter into international agreements 
        to establish signal and service standards that protect 
        the Global Positioning System from disruption and 
        interference.
            (3) Undertaking efforts to eliminate any barriers 
        to, and other restrictions of foreign governments on, 
        peaceful uses of the Global Positioning System.
            (4) Requiring that any proposed international 
        agreement involving nonmilitary use of the Global 
        Positioning System or any augmentation to the system 
        not be agreed to by the United States unless the 
        proposed agreement has been reviewed by the Secretary 
        of State, the Secretary of Defense, the Secretary of 
        Transportation, and the Secretary of Commerce (acting 
        as the Interagency Global Positioning System Executive 
        Board established by Presidential Decision Directive 
        NSTC-6, dated March 28, 1996).
    (c) Fiscal Year 1998 Prohibition of Support of Foreign 
System.--None of the funds authorized to be appropriated under 
this Act may be used to support the operation and maintenance 
or enhancement of a satellite navigation system operated by a 
foreign country.
    (d) In General.--(1) Part IV of subtitle A of title 10, 
United States Code, is amended by inserting after chapter 134 
the following new chapter:

        ``CHAPTER 136--PROVISIONS RELATING TO SPECIFIC PROGRAMS

``Sec.
``2281. Global Positioning System.

``Sec. 2281. Global Positioning System

    ``(a) Sustainment and Operation for Military Purposes.--The 
Secretary of Defense shall provide for the sustainment of the 
capabilities of the Global Positioning System (hereinafter in 
this section referred to as the `GPS'), and the operation of 
basic GPS services, that are beneficial for thenational 
security interests of the United States. In doing so, the Secretary 
shall--
            ``(1) develop appropriate measures for preventing 
        hostile use of the GPS so as to make it unnecessary for 
        the Secretary to use the selective availability feature 
        of the system continuously while not hindering the use 
        of the GPS by the United States and its allies for 
        military purposes; and
            ``(2) ensure that United States armed forces have 
        the capability to use the GPS effectively despite 
        hostile attempts to prevent the use of the system by 
        such forces.
    ``(b) Sustainment and Operation for Civilian Purposes.--The 
Secretary of Defense shall provide for the sustainment and 
operation of the GPS Standard Positioning Service for peaceful 
civil, commercial, and scientific uses on a continuous 
worldwide basis free of direct user fees. In doing so, the 
Secretary--
            ``(1) shall provide for the sustainment and 
        operation of the GPS Standard Positioning Service in 
        order to meet the performance requirements of the 
        Federal Radionavigation Plan prepared jointly by the 
        Secretary of Defense and the Secretary of 
        Transportation pursuant to subsection (c);
            ``(2) shall coordinate with the Secretary of 
        Transportation regarding the development and 
        implementation by the Government of augmentations to 
        the basic GPS that achieve or enhance uses of the 
        system in support of transportation;
            ``(3) shall coordinate with the Secretary of 
        Commerce, the United States Trade Representative, and 
        other appropriate officials to facilitate the 
        development of new and expanded civil and commercial 
        uses for the GPS;
            ``(4) shall develop measures for preventing hostile 
        use of the GPS in a particular area without hindering 
        peaceful civil use of the system elsewhere; and
            ``(5) may not agree to any restriction on the 
        Global Positioning System proposed by the head of a 
        department or agency of the United States outside the 
        Department of Defense in the exercise of that 
        official's regulatory authority that would adversely 
        affect the military potential of the Global Positioning 
        System.
    ``(c) Federal Radionavigation Plan.--The Secretary of 
Defense and the Secretary of Transportation shall jointly 
prepare the Federal Radionavigation Plan. The plan shall be 
revised and updated not less often than every two years. The 
plan shall be prepared in accordance with the requirements 
applicable to such plan as first prepared pursuant to section 
507 of the International Maritime Satellite Telecommunications 
Act (47 U.S.C. 756). The plan, and any amendment to the plan, 
shall be published in the Federal Register.
    ``(d) Biennial Report.--(1) Not later than 30 days after 
the end of each even-numbered fiscal year, the Secretary of 
Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on the Global Positioning System. The 
report shall include a discussion of the following matters:
            ``(A) The operational status of the system.
            ``(B) The capability of the system to satisfy 
        effectively (i) the military requirements for the 
        system that are current as of the date of the report, 
        and (ii) the performance requirements of the Federal 
        Radionavigation Plan.
            ``(C) The most recent determination by the 
        President regarding continued use of the selective 
        availability feature of the system and the expected 
        date of any change or elimination of the use of that 
        feature.
            ``(D) The status of cooperative activities 
        undertaken by the United States with the governments of 
        other countries concerning the capability of the system 
        or any augmentation of the system to satisfy civil, 
        commercial, scientific, and military requirements, 
        including a discussion of the status and results of 
        activities undertaken under any regional international 
        agreement.
            ``(E) Any progress made toward establishing GPS as 
        an international standard for consistency of 
        navigational service.
            ``(F) Any progress made toward protecting GPS from 
        disruption and interference.
            ``(G) The effects of use of the system on national 
        security, regional security, and the economic 
        competitiveness of United States industry, including 
        the Global Positioning System equipment and service 
        industry and user industries.
    ``(2) In preparing the parts of each such report required 
under subparagraphs (D), (E), (F), and (G) of paragraph (1), 
the Secretary of Defense shall consult with the Secretary of 
State, the Secretary of Commerce, and the Secretary of 
Transportation.
    ``(e) Definitions.--In this section:
            ``(1) The term `basic GPS services' means the 
        following components of the Global Positioning System 
        that are operated and maintained by the Department of 
        Defense:
                    ``(A) The constellation of satellites.
                    ``(B) The navigation payloads that produce 
                the Global Positioning System signals.
                    ``(C) The ground stations, data links, and 
                associated command and control facilities.
            ``(2) The term `GPS Standard Positioning Service' 
        means the civil and commercial service provided by the 
        basic Global Positioning System as defined in the 1996 
        Federal Radionavigation Plan (published jointly by the 
        Secretary of Defense and the Secretary of 
        Transportation in July 1997).''.
    (2) The tables of chapters at the beginning of subtitle A, 
and at the beginning of part IV of subtitle A, of such title 
are amended by inserting after the item relating to chapter 134 
the following new item:

``136. Provisions Relating to Specific Programs..................2281''.

SEC. 1075. PROTECTION OF SAFETY-RELATED INFORMATION VOLUNTARILY 
                    PROVIDED BY AIR CARRIERS.

    (a) Authority To Protect Information.--Section 2640 of 
title 10, United States Code, is amended--
            (1) by redesignating subsections (h) and (i) as 
        subsections (i) and (j), respectively; and
            (2) by inserting after subsection (g) the following 
        new subsection (h):
    ``(h) Authority To Protect Safety-Related Information 
Voluntarily Provided by an Air Carrier.--(1) Subject to 
paragraph (2), the Secretary of Defense may (notwithstanding 
any other provision of law) withhold from public disclosure 
safety-related information that is provided to the Secretary 
voluntarily by an air carrier for the purposes of this section.
    ``(2) Information may be withheld under paragraph (1) from 
public disclosure only if the Secretary determines that--
            ``(A) the disclosure of the information would 
        inhibit an air carrier from voluntarily providing, in 
        the future, safety-related information for the purposes 
        of this section or for other air safety purposes 
        involving the Department of Defense or another Federal 
        agency; and
            ``(B) the receipt of such information generally 
        enhances the fulfillment of responsibilities under this 
        section or other air safety responsibilities involving 
        the Department of Defense or another Federal agency.
    ``(3) If the Secretary provides to the head of another 
agency safety-related information described in paragraph (1) 
with respect to which the Secretary has made a determination 
described in paragraph (2), the head of that agency shall 
(notwithstanding any other provision of law) withhold the 
information from public disclosure unless the disclosure is 
specifically authorized by the Secretary.''.
    (b) Applicability.--Subsection (h) of section 2640 of title 
10, United States Code, as added by subsection (a), shallapply 
with respect to requests for information made on or after the date of 
the enactment of this Act.

SEC. 1076. NATIONAL GUARD CHALLENGE PROGRAM TO CREATE OPPORTUNITIES FOR 
                    CIVILIAN YOUTH.

    (a) Program Authority.--Chapter 5 of title 32, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 509. National Guard Challenge Program of opportunities for 
                    civilian youth

    ``(a) Program Authority and Purpose.--The Secretary of 
Defense, acting through the Chief of the National Guard Bureau, 
may conduct a National Guard civilian youth opportunities 
program (to be known as the `National Guard Challenge Program') 
to use the National Guard to provide military-based training, 
including supervised work experience in community service and 
conservation projects, to civilian youth who cease to attend 
secondary school before graduating so as to improve the life 
skills and employment potential of such youth.
    ``(b) Conduct of the Program.--The Secretary of Defense 
shall provide for the conduct of the National Guard Challenge 
Program in such States as the Secretary considers to be 
appropriate, except that Federal expenditures under the program 
may not exceed $50,000,000 for any fiscal year.
    ``(c) Program Agreements.--(1) To carry out the National 
Guard Challenge Program in a State, the Secretary of Defense 
shall enter into an agreement with the Governor of the State 
or, in the case of the District of Columbia, with the 
commanding general of the District of Columbia National Guard, 
under which the Governor or the commanding general will 
establish, organize, and administer the National Guard 
Challenge Program in the State.
    ``(2) The agreement may provide for the Secretary to 
provide funds to the State for civilian personnel costs 
attributable to the use of civilian employees of the National 
Guard in the conduct of the National Guard Challenge Program.
    ``(d) Matching Funds Required.--The amount of assistance 
provided under this section to a State program of the National 
Guard Challenge Program may not exceed--
            ``(1) for fiscal year 1998, 75 percent of the costs 
        of operating the State program during that year;
            ``(2) for fiscal year 1999, 70 percent of the costs 
        of operating the State program during that year;
            ``(3) for fiscal year 2000, 65 percent of the costs 
        of operating the State program during that year; and
            ``(4) for fiscal year 2001 and each subsequent 
        fiscal year, 60 percent of the costs of operating the 
        State program during that year.
    ``(e) Persons Eligible to Participate in Program.--A school 
dropout from secondary school shall be eligible to participate 
in the National Guard Challenge Program. The Secretary of 
Defense shall prescribe the standards and procedures for 
selecting participants from among school dropouts.
    ``(f) Authorized Benefits for Participants.--(1) To the 
extent provided in an agreement entered into in accordance with 
subsection (c) and subject to the approval of the Secretary of 
Defense, a person selected for training in the National Guard 
Challenge Program may receive the following benefits in 
connection with that training:
            ``(A) Allowances for travel expenses, personal 
        expenses, and other expenses.
            ``(B) Quarters.
            ``(C) Subsistence.
            ``(D) Transportation.
            ``(E) Equipment.
            ``(F) Clothing.
            ``(G) Recreational services and supplies.
            ``(H) Other services.
            ``(I) Subject to paragraph (2), a temporary stipend 
        upon the successful completion of the training, as 
        characterized in accordance with procedures provided in 
        the agreement.
    ``(2) In the case of a person selected for training in the 
National Guard Challenge Program who afterwards becomes a 
member of the Civilian Community Corps under subtitle E of 
title I of the National and Community Service Act of 1990 (42 
U.S.C. 12611 et seq.), the person may not receive a temporary 
stipend under paragraph (1)(I) while the person is a member of 
that Corps. The person may receive the temporary stipend after 
completing service in the Corps unless the person elects to 
receive benefits provided under subsection (f) or (g) of 
section 158 of such Act (42 U.S.C. 12618).
    ``(g) Program Personnel.--(1) Personnel of the National 
Guard of a State in which the National Guard Challenge Program 
is conducted may serve on full-time National Guard duty for the 
purpose of providing command, administrative, training, or 
supporting services for the program. For the performance of 
those services, any such personnel may be ordered to duty under 
section 502(f) of this title for not longer than the period of 
the program.
    ``(2) A Governor participating in the National Guard 
Challenge Program and the commanding general of the District of 
Columbia National Guard (if the District of Columbia National 
Guard is participating in the program) may procure by contract 
the temporary full time services of such civilian personnel as 
may be necessary to augment National Guard personnel in 
carrying out the National Guard Challenge Program in that 
State.
    ``(3) Civilian employees of the National Guard performing 
services for the National Guard Challenge Program and 
contractor personnel performing such services may be required, 
when appropriate to achieve the purposes of the program, to be 
members of the National Guard and to wear the military uniform.
    ``(h) Equipment and Facilities.--(1) Equipment and 
facilities of the National Guard, including military property 
of the United States issued to the National Guard, may be used 
in carrying out the National Guard Challenge Program.
    ``(2) Activities under the National Guard Challenge Program 
shall be considered noncombat activities of the National Guard 
for purposes of section 710 of this title.
    ``(i) Status of Participants.--(1) A person receiving 
training under the National Guard Challenge Program shall be 
considered an employee of the United States for the purposes of 
the following provisions of law:
            ``(A) Subchapter I of chapter 81 of title 5 
        (relating to compensation of Federal employees for work 
        injuries).
            ``(B) Section 1346(b) and chapter 171 of title 28 
        and any other provision of law relating to the 
        liability of the United States for tortious conduct of 
        employees of the United States.
    ``(2) In the application of the provisions of law referred 
to in paragraph (1)(A) to a person referred to in paragraph 
(1)--
            ``(A) the person shall not be considered to be in 
        the performance of duty while the person is not at the 
        assigned location of training or other activity or duty 
        authorized in accordance with a program agreement 
        referred to in subsection (c), except when the person 
        is traveling to or from that location or is on pass 
        from that training or other activity or duty;
            ``(B) the person's monthly rate of pay shall be 
        deemed to be the minimum rate of pay provided for grade 
        GS-2 of the General Schedule under section 5332 of 
        title 5; and
            ``(C) the entitlement of a person to receive 
        compensation for a disability shall begin on the day 
        following the date on which the person's participation 
        in the National Guard Challenge Program is terminated.
    ``(3) A person referred to in paragraph (1) may not be 
considered an employee of the United States for any purpose 
other than a purpose set forth in that paragraph.
    ``(j) Supplemental Resources.--To carry out the National 
Guard Challenge Program in a State, the Governor of the State 
or, in the case of the District of Columbia, the commanding 
general of the District of Columbia National Guard may 
supplement funds made available under the program out of other 
resources (including gifts) available to the Governor or the 
commanding general. The Governor or the commanding general may 
accept, use, and dispose of gifts or donations of money, other 
property, or services for the National Guard Challenge Program.
    ``(k) Report.--Within 90 days after the end of each fiscal 
year, the Secretary of Defense shall submit to Congress a 
report on the design, conduct, and effectiveness of the 
National Guard Challenge Program during the preceding fiscal 
year. In preparing the report, the Secretary shall coordinate 
with the Governor of each State in which the National Guard 
Challenge Program is carried out and, if the program is carried 
out in the District of Columbia, with the commanding general of 
the District of Columbia National Guard.
    ``(l) Definitions.--In this section:
            ``(1) The term `State' includes the Commonwealth of 
        Puerto Rico, the territories, and the District of 
        Columbia.
            ``(2) The term `school dropout' means an individual 
        who is no longer attending any school and who has not 
        received a secondary school diploma or a certificate 
        from a program of equivalency for such a diploma.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``509. National Guard Challenge Program of opportunities for civilian 
          youth.''.

SEC. 1077. DISQUALIFICATION FROM CERTAIN BURIAL-RELATED BENEFITS FOR 
                    PERSONS CONVICTED OF CAPITAL CRIMES.

    (a) In General.--(1) Chapter 49 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 985. Persons convicted of capital crimes: denial of certain 
                    burial-related benefits

    ``(a) Prohibition of Performance of Military Honors.--The 
Secretary of a military department and the Secretary of 
Transportation, with respect to the Coast Guard whenit is not 
operating as a service in the Navy, may not provide military honors at 
the funeral or burial of a person who has been convicted of a capital 
offense under Federal or State law for which the person was sentenced 
to death or life imprisonment without parole.
    ``(b) Disqualification From Burial in Military 
Cemeteries.--A person convicted of a capital offense under 
Federal law is not entitled to or eligible for, and may not be 
provided, burial in--
            ``(1) Arlington National Cemetery;
            ``(2) the Soldiers' and Airmen's National Cemetery; 
        or
            ``(3) any other cemetery administered by the 
        Secretary of a military department or the Secretary of 
        Defense.
    ``(c) Definitions.--In this section:
            ``(1) The term `capital offense' means an offense 
        for which the death penalty may be imposed.
            ``(2) The term `burial' includes inurnment.
            ``(3) The term `State' includes the District of 
        Columbia and any commonwealth or territory of the 
        United States.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``985. Persons convicted of capital crimes: denial of certain burial-
          related benefits.''.

    (b) Applicability.--Section 985 of title 10, United States 
Code, as added by subsection (a), applies with respect to 
persons dying after January 1, 1997.

SEC. 1078. RESTRICTIONS ON THE USE OF HUMAN SUBJECTS FOR TESTING OF 
                    CHEMICAL OR BIOLOGICAL AGENTS.

    (a) Prohibited Activities.--The Secretary of Defense may 
not conduct (directly or by contract)--
            (1) any test or experiment involving the use of a 
        chemical agent or biological agent on a civilian 
        population; or
            (2) any other testing of a chemical agent or 
        biological agent on human subjects.
    (b) Exceptions.--Subject to subsections (c), (d), and (e), 
the prohibition in subsection (a) does not apply to a test or 
experiment carried out for any of the following purposes:
            (1) Any peaceful purpose that is related to a 
        medical, therapeutic, pharmaceutical, agricultural, 
        industrial, or research activity.
            (2) Any purpose that is directly related to 
        protection against toxic chemicals or biological 
        weapons and agents.
            (3) Any law enforcement purpose, including any 
        purpose related to riot control.
    (c) Informed Consent Required.--The Secretary of Defense 
may conduct a test or experiment described in subsection (b) 
only if informed consent to the testing was obtained from each 
human subject in advance of the testing on that subject.
    (d) Prior Notice to Congress.--Not later than 30 days after 
the date of final approval within the Department of Defense of 
plans for any experiment or study to be conducted by the 
Department of Defense (whether directly or under contract) 
involving the use of human subjects for the testing of a 
chemical agent or a biological agent, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives a report setting forth a full accounting of 
those plans, and the experiment or study may then be conducted 
only after the end of the 30-day period beginning on the date 
such report is received by those committees.
    (e) Biological Agent Defined.--In this section, the term 
``biological agent'' means any micro-organism (including 
bacteria, viruses, fungi, rickettsiac, or protozoa), pathogen, 
or infectious substance, and any naturally occurring, 
bioengineered, or synthesized component of any such micro-
organism, pathogen, or infectious substance, whatever its 
origin or method of production, that is capable of causing--
            (1) death, disease, or other biological malfunction 
        in a human, an animal, a plant, or another living 
        organism;
            (2) deterioration of food, water, equipment, 
        supplies, or materials of any kind; or
            (3) deleterious alteration of the environment.
    (f) Report and Certification.--Section 1703(b) of the 
National Defense Authorization Act for Fiscal Year 1994 (50 
U.S.C. 1523(b)) is amended by adding at the end the following 
new paragraph:
            ``(9) A description of any program involving the 
        testing of biological or chemical agents on human 
        subjects that was carried out by the Department of 
        Defense during the period covered by the report, 
        together with--
                    ``(A) a detailed justification for the 
                testing;
                    ``(B) a detailed explanation of the 
                purposes of the testing;
                    ``(C) a description of each chemical or 
                biological agent tested; and
                    ``(D) the Secretary's certification that 
                informed consent to the testing was obtained 
                from each human subject in advance of the 
                testing on that subject.''.
    (g) Repeal of Superseded Provision of Law.--Section 808 of 
the Department of Defense Appropriation Authorization Act, 1978 
(50 U.S.C. 1520), is repealed.

SEC. 1079. TREATMENT OF MILITARY FLIGHT OPERATIONS.

    No military flight operation (including a military training 
flight), or designation of airspace for such an operation, may 
be treated as a transportation program or project for purposes 
of section 303(c) of title 49, United States Code.

SEC. 1080. NATURALIZATION OF CERTAIN FOREIGN NATIONALS WHO SERVE 
                    HONORABLY IN THE ARMED FORCES DURING A PERIOD OF 
                    CONFLICT.

    (a) In General.--Section 329(a)(1) of the Immigration and 
Nationality Act (8 U.S.C. 1440(a)(1)) is amended--
            (1) by inserting ``, reenlistment, extension of 
        enlistment,'' after ``at the time of enlistment''; and
            (2) by inserting ``or on board a public vessel 
        owned or operated by the United States for 
        noncommercial service,'' after ``United States, the 
        Canal Zone, American Samoa, or Swains Island,''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall apply with respect to enlistments, reenlistments, 
extensions of enlistment, and inductions of persons occurring 
on or after the date of the enactment of this Act.

SEC. 1081. APPLICABILITY OF CERTAIN PAY AUTHORITIES TO MEMBERS OF 
                    SPECIFIED INDEPENDENT STUDY ORGANIZATIONS.

    (a) Applicability of Certain Pay Authorities.--(1) An 
individual who is a member of a commission or panel specified 
in subsection (b) and is an annuitant otherwise covered by 
section 8344 or 8468 of title 5, United States Code, by reason 
of membership on the commission or panel is not subject to the 
provisions of that section with respect to such membership.
    (2) An individual who is a member of a commission or panel 
specified in subsection (b) and is a member or former member of 
a uniformed service is not subject to the provisions of 
subsections (b) and (c) of section 5532 of such title with 
respect to membership on the commission or panel.
    (b) Specified Entities.--Subsection (a) applies--
            (1) effective as of September 23, 1996, to members 
        of the National Defense Panel established by section 
        924 of the National Defense Authorization Act for 
        Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2626); 
        and
            (2) effective as of October 9, 1996, to members of 
        the Commission on Servicemembers and Veterans 
        Transition Assistance established by section 701 of the 
        Veterans' Benefits Improvements Act of 1996 (Public Law 
        104-275; 110 Stat. 3346; 38 U.S.C. 545 note).

SEC. 1082. DISPLAY OF POW/MIA FLAG.

    (a) Required Display.--The POW/MIA flag shall be displayed 
at the locations specified in subsection (c) on POW/MIA flag 
display days. Such display shall serve (1) as the symbol of the 
Nation's concern and commitment to achieving the fullest 
possible accounting of Americans who, having been prisoners of 
war or missing in action, still remain unaccounted for, and (2) 
as the symbol of the Nation's commitment to achieving the 
fullest possible accounting for Americans who in the future may 
become prisoners of war, missing in action, or otherwise 
unaccounted for as a result of hostile action.
    (b) Days for Flag Display.--(1) For purposes of this 
section, POW/MIA flag display days are the following:
            (A) Armed Forces Day, the third Saturday in May.
            (B) Memorial Day, the last Monday in May.
            (C) Flag Day, June 14.
            (D) Independence Day, July 4.
            (E) National POW/MIA Recognition Day.
            (F) Veterans Day, November 11.
    (2) In addition to the days specified in paragraph (1), 
POW/MIA flag display days include--
            (A) in the case of display at medical centers of 
        the Department of Veterans Affairs (required by 
        subsection (c)(7)), any day on which the flag of the 
        United States is displayed; and
            (B) in the case of display at United States Postal 
        Service post offices (required by subsection (c)(8)), 
        the last business day before a day specified in 
        paragraph (1) that in any year is not itself a business 
        day.
    (c) Locations for Flag Display.--The locations for the 
display of the POW/MIA flag under subsection (a) are the 
following:
            (1) The Capitol.
            (2) The White House.
            (3) The Korean War Veterans Memorial and the 
        Vietnam Veterans Memorial.
            (4) Each national cemetery.
            (5) The buildings containing the official office 
        of--
                    (A) the Secretary of State;
                    (B) the Secretary of Defense;
                    (C) the Secretary of Veterans Affairs; and
                    (D) the Director of the Selective Service 
                System.
            (6) Each major military installation, as designated 
        by the Secretary of Defense.b
            (7) Each medical center of the Department of 
        Veterans Affairs.
            (8) Each United States Postal Service post office.
    (d) Coordination With Other Display Requirement.--Display 
of the POW flag at the Capitol pursuant to paragraph (1) of 
subsection (c) is in addition to the display of that flag in 
the Rotunda of the Capitol pursuant to Senate Concurrent 
Resolution 5 of the 101st Congress, agreed to on February 22, 
1989 (103 Stat. 2533).
    (e) Display To Be in a Manner Visible to the Public.--
Display of the POW/MIA flag pursuant to this section shall be 
in a manner designed to ensure visibility to the public.
    (f) Limitation.--This section may not be construed or 
applied so as to require any employee to report to work solely 
for the purpose of providing for the display of the POW/MIA 
flag.
    (g) POW/MIA Flag Defined.--As used in this section, the 
term ``POW/MIA flag'' means the National League of Families 
POW/MIA flag recognized officially and designated by section 2 
of Public Law 101-355 (36 U.S.C. 189).
    (h) Regulations for Implementation.--Not later than 180 
days after the date of the enactment of this Act, the head of 
each department, agency, or other establishment responsible for 
a location specified in subsection (c) (other than the Capitol) 
shall prescribe such regulations as necessary to carry out this 
section.
    (i) Procurement and Distribution of Flags.--Not later than 
30 days after the date of the enactment of this Act, the 
Administrator of General Services shall procure POW/MIA flags 
and distribute them as necessary to carry out this section.
    (j) Repeal of Superseded Law.--Section 1084 of Public Law 
102-190 (36 U.S.C. 189 note) is repealed.

SEC. 1083. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN 
                    CONFLICT.

    (a) Commemorative Program.--The Secretary of Defense may 
conduct a program to commemorate the 50th anniversary of the 
Korean conflict. In conducting the commemorative program, the 
Secretary may coordinate, support, and facilitate other 
programs and activities of the Federal Government, State and 
local governments, and other persons in commemoration of the 
Korean conflict.
    (b) Commemorative Activities.--The commemorative program 
may include activities and ceremonies--
            (1) to provide the people of the United States with 
        a clear understanding and appreciation of the lessons 
        and history of the Korean conflict;
            (2) to thank and honor veterans of the Korean 
        conflict and their families;
            (3) to pay tribute to the sacrifices and 
        contributions made on the home front by the people of 
        the United States during the Korean conflict;
            (4) to highlight advances in technology, science, 
        and medicine related to military research conducted 
        during the Korean conflict;
            (5) to recognize the contributions and sacrifices 
        made by the allies of the United States in the Korean 
        conflict; and
            (6) to highlight the role of the Armed Forces of 
        the United States, then and now, in maintaining world 
        peace through strength.
    (c) Names and Symbols.--The Secretary of Defense shall have 
the sole and exclusive right to use the names ``The Department 
of Defense Korean Conflict Commemoration'', and such seal, 
emblems, and badges incorporating such name as the Secretary 
may lawfully adopt. Nothing in this section may be construed to 
supersede rights that are established or vested before the date 
of the enactment of this Act.
    (d) Commemorative Account.--(1) There is established in the 
Treasury an account to be known as the ``Department of Defense 
Korean Conflict Commemoration Account'', which shall be 
administered by the Secretary of Defense. There shall be 
deposited into the account all proceeds derived from the 
Secretary's use of the exclusive rights described in subsection 
(c). The Secretary may use funds in the account only for the 
purpose of conducting the commemorative program.
    (2) Not later than 60 days after completion of all 
activities and ceremonies conducted as part of the 
commemorative program, the Secretary shall submit to Congress a 
report containing an accounting of all of the funds deposited 
into and expended from the account or otherwise expended under 
this section, and of any funds remaining in the account. 
Unobligated funds remaining in the account on that date shall 
be held in the account until transferred by law.
    (e) Acceptance of Voluntary Services.--(1) Notwithstanding 
section 1342 of title 31, United States Code, the Secretary of 
Defense may accept from any person voluntary services to be 
provided in furtherance of the commemorative program.
    (2) A person providing voluntary services under this 
subsection shall be considered to be a Federal employee for 
purposes of chapter 81 of title 5, United States Code, relating 
to compensation for work-related injuries. The person shall 
also be considered a special governmental employee for purposes 
of standards of conduct and sections 202, 203, 205, 207, 208, 
and 209 of title 18, United States Code. A person who is not 
otherwise employed by the Federal Government shall not be 
considered to be a Federal employee for any other purpose by 
reason of the provision of voluntary services under this 
subsection.
    (3) The Secretary may provide for reimbursement of 
incidental expenses incurred by a person providing voluntary 
services under this subsection. The Secretary shall determine 
which expenses are eligible for reimbursement under this 
paragraph.
    (f) Limitation on Expenditures.--Total expenditures to 
carry out the commemorative program may not exceed $100,000.

SEC. 1084. COMMENDATION OF MEMBERS OF THE ARMED FORCES AND GOVERNMENT 
                    CIVILIAN PERSONNEL WHO SERVED DURING THE COLD WAR; 
                    CERTIFICATE OF RECOGNITION.

    (a) Findings.--The Congress finds the following:
            (1) During the period of the Cold War, from the end 
        of World War II until the collapse of the Soviet Union 
        in 1991, the United States and the Soviet Union engaged 
        in a global military rivalry.
            (2) This rivalry, potentially the most dangerous 
        military confrontation in the history of mankind, has 
        come to a close without a direct superpower military 
        conflict.
            (3) Military and civilian personnel of the 
        Department of Defense, personnel in the intelligence 
        community, members of the foreign service, and other 
        officers and employees of the United States faithfully 
        performed their duties during the Cold War.
            (4) Many such personnel performed their duties 
        while isolated from family and friends and served 
        overseas under frequently arduous conditions in order 
        to protect the United States and achieve a lasting 
        peace.
            (5) The discipline and dedication of those 
        personnel were fundamental to the prevention of a 
        superpower military conflict.
    (b) Congressional Commendation.--The Congress hereby 
commends the members of the Armed Forces and civilian personnel 
of the Government who contributed to the historic victory in 
the Cold War and expresses its gratitude and appreciation for 
their service and sacrifices of.
    (c) Certificates of Recognition.--The Secretary of Defense 
shall prepare a certificate recognizing the Cold War service of 
qualifying members of the Armed Forces and civilian personnel 
of the Department of Defense and other Government agencies 
contributing to national security, as determined by the 
Secretary, and shall provide the certificate to such members 
and civilian personnel upon request.

SEC. 1085. SENSE OF CONGRESS ON GRANTING OF STATUTORY FEDERAL CHARTERS.

    (a) Findings.--Congress finds that the practice of 
providing by statute Federal charters to certain nonprofit 
organizations--
            (1) may be perceived as implying a Government 
        imprimatur of approval of those organizations; and
            (2) may mistakenly lead to public perception that 
        the United States ensures the integrity and worthiness 
        of those organizations.
    (b) Sense of Congress.--It is the sense of Congress--
            (1) that because of the perceived implicit 
        Government imprimatur of approval conveyed by enactment 
        of a Federal charter for an organization, such a 
        charter should be granted only in the rarest and most 
        extraordinary cases; and
            (2) that no statutory Federal charter should be 
        enacted after the enactment of this Act unless the 
        charter is approved by Congress upon favorable report 
        by the committees of jurisdiction of the respective 
        Houses.

SEC. 1086. SENSE OF CONGRESS REGARDING MILITARY VOTING RIGHTS.

    (a) Findings.--Congress finds that--
            (1) members of the Armed Forces have a fundamental 
        right to vote in Federal, State, and local elections; 
        and
            (2) an extended absense of a member of the Armed 
        Forces from the place of the member's residency or 
        domicile due to military or naval orders is not of 
        itself grounds to consider the member's residency or 
        domicile as lost or changed.
    (b) Sense of Congress.--It is the sense of Congress that 
the Secretary of Defense, in consultation with the Attorney 
General, should review how best to protect the right of members 
of the Armed Forces to vote in Federal, State, and local 
elections while taking into account the right of States to 
prescribe requirements for voter registration. Such a review 
should include an assessment of challenges to military voting 
rights and consideration of possible legislative remedies to 
ensure that, for purposes of voting in Federal, State, and 
local elections, a member of the Armed Forces who is absent 
from a State in compliance with military or naval orders is 
not, solely by reason of that absence, considered to have lost 
or changed residency or domicile.

SEC. 1087. DESIGNATION OF BOB HOPE AS AN HONORARY VETERAN OF THE ARMED 
                    FORCES OF THE UNITED STATES.

    (a) Findings.--Congress makes the following findings:
            (1) In its more than 200 years of existence as a 
        nation, the United States has never conferred on any 
        person the status of being an honorary veteran of the 
        Armed Forces of the United States.
            (2) Status as an honorary veteran of the Armed 
        Forces of the United States is and should remain an 
        extraordinary honor not lightly conferred nor 
        frequently granted.
            (3) The lifetime of accomplishments and service of 
        Leslie Townes (Bob) Hope on behalf of members of the 
        Armed Forces of the United States fully justifies the 
        conferring of that status.
            (4) Bob Hope attempted to enlist in the Armed 
        Forces to serve his country during World War II but was 
        informed that the greatest service he could provide his 
        country was as a civilian entertainer for the troops.
            (5) During World War II, the Korean Conflict, the 
        Vietnam War, the Persian Gulf War, and the Cold War, 
        Bob Hope travelled to visit and entertain millions of 
        members of the Armed Forces in numerous countries, on 
        ships at sea, and in combat zones ashore.
            (6) Bob Hope has been awarded the Congressional 
        Gold Medal, the Presidential Medal of Freedom, the 
        Distinguished Service Medal of each of the branches of 
        the Armed Forces and more than 100 other citations and 
        awards from national veterans service organizations and 
        civic and humanitarian organizations.
            (7) Bob Hope has given unselfishly of himself for 
        over half a century to be with American service members 
        on foreign shores, working tirelessly to bring a spirit 
        of humor and cheer to millions of service members 
        during their loneliest moments, and has, thereby, 
        extended to them for the American people a touch of 
        home away from home.
    (b) Designation of Bob Hope as Honorary Veteran.--
Congress--
            (1) extends its gratitude, on behalf of the 
        American people, to Leslie Townes (Bob) Hope, of the 
        State of California, for his lifetime of 
        accomplishments and service on behalf of members of the 
        Armed Forces of the United States; and
            (2) hereby confers upon him the status of being an 
        honorary veteran of the Armed Forces of the United 
        States.

SEC. 1088. FIVE-YEAR EXTENSION OF AVIATION INSURANCE PROGRAM.

    (a) Extension.--Section 44310 of title 49, United States 
Code, is amended by striking out ``September 30, 1997'' and 
inserting in lieu thereof ``September 30, 2002''.
    (b) Effective Date.--This section shall take effect as of 
September 30, 1997.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Use of prohibited constraints to manage Department of Defense 
          personnel.
Sec. 1102. Veterans' preference status for certain veterans who served 
          on active duty during the Persian Gulf War.
Sec. 1103. Repeal of deadline for placement consideration of 
          involuntarily separated military reserve technicians.
Sec. 1104. Rate of pay of Department of Defense overseas teachers upon 
          transfer to General Schedule position.
Sec. 1105. Garnishment and involuntary allotment.
Sec. 1106. Extension and revision of voluntary separation incentive pay 
          authority.
Sec. 1107. Use of approved fire-safe accommodations by Government 
          employees on official business.
Sec. 1108. Navy higher education pilot program regarding administration 
          of business relationships between Government and private 
          sector.
Sec. 1109. Authority for Marine Corps University to employ civilian 
          faculty members.

SEC. 1101. USE OF PROHIBITED CONSTRAINTS TO MANAGE DEPARTMENT OF 
                    DEFENSE PERSONNEL.

    Section 129 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(f)(1) Not later than February 1 of each year, the 
Secretary of each military department and the head of each 
Defense Agency shall submit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives a report on the management of the 
civilian workforce under the jurisdiction of that official.
    ``(2) Each report of an official under paragraph (1) shall 
contain the following:
            ``(A) The official's certification (i) that the 
        civilian workforce under the jurisdiction of the 
        official is not subject to any constraint or limitation 
        in terms of man years, end strength, full-time 
        equivalent positions, or maximum number of employees, 
        and (ii) that, during the 12 months preceding the date 
        on which the report is due, such workforce has not been 
        subject to any such constraint or limitation.
            ``(B) A description of how the civilian workforce 
        is managed.
            ``(C) A detailed description of the analytical 
        tools used to determine civilian workforce requirements 
        during the 12-month period referred to in subparagraph 
        (A).''.

SEC. 1102. VETERANS' PREFERENCE STATUS FOR CERTAIN VETERANS WHO SERVED 
                    ON ACTIVE DUTY DURING THE PERSIAN GULF WAR.

    (a) Definition of Veteran for Purposes of Preference 
Eligible Status.--Section 2108 of title 5, United States Code, 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or'' at the end of 
                subparagraph (A);
                    (B) by inserting ``or'' at the end of 
                subparagraph (B); and
                    (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) served on active duty as defined by 
                section 101(21) of title 38 in the armed forces 
                during the period beginning on August 2, 1990, 
                and ending on January 2, 1992;''; and
            (2) in paragraph (3)(B), by inserting ``or (C)'' 
        after ``paragraph (1)(B)''.
    (b) Additional Points.--Section 3309(2) of such title is 
amended by striking ``2108(3)(A)'' and inserting ``2108(3)(A)-
(B)''.
    (c) Technical Amendments.--Section 2108(1)(B) of such title 
is further amended--
            (1) by striking ``the date of enactment of the 
        Veterans' Education and Employment Assistance Act of 
        1976,'' and inserting ``October 15, 1976,''; and
            (2) by striking ``511(d) of title 10'' and 
        inserting ``12103(d) of title 10''.

SEC. 1103. REPEAL OF DEADLINE FOR PLACEMENT CONSIDERATION OF 
                    INVOLUNTARILY SEPARATED MILITARY RESERVE 
                    TECHNICIANS.

    (a) Repeal of Deadline.--Section 3329(b) of title 5, United 
States Code, is amended by striking out ``not later than 6 
months after the date of the application''.
    (b) Technical Correction.--Such section is further amended 
by striking out ``a position described in subsection (c)'' the 
second place it appears.

SEC. 1104. RATE OF PAY OF DEPARTMENT OF DEFENSE OVERSEAS TEACHERS UPON 
                    TRANSFER TO GENERAL SCHEDULE POSITION.

    (a) Prevention of Excessive Increases.--Section 5334(d) of 
title 5, United States Code, is amended by striking out ``20 
percent'' and all that follows and inserting in lieu thereof 
``an amount determined under regulations which the Secretary of 
Defense shall prescribe for the determination of the yearly 
rate of pay of the position. The amount by which a rate of pay 
is increased under the regulations may not exceed the amount 
equal to 20 percent of that rate of pay.''.
    (b) Effective Date and Savings Provision.--(1) The 
amendment made by subsection (a) shall take effect 180 days 
after the date of the enactment of this Act.
    (2) In the case of a person who is employed in a teaching 
position referred to in section 5334(d) of title 5, United 
States Code, on the day before the effective date under 
paragraph (1), the rate of pay of that person determined under 
that section (as in effect on that day) may not be reduced by 
reason of the amendment made by subsection (a) for so long as 
the person continues to serve in that position or another such 
position without a break in service of more than three days on 
or after that day.

SEC. 1105. GARNISHMENT AND INVOLUNTARY ALLOTMENT.

    Section 5520a of title 5, United States Code, is amended--
            (1) in subsection (j), by striking out paragraph 
        (2) and inserting in lieu thereof the following new 
        paragraph:
    ``(2) Such regulations shall provide that an agency's 
administrative costs in executing a garnishment action may be 
added to the garnishment, and that the agency may retain costs 
recovered as offsetting collections.'';
            (2) in subsection (k)--
                    (A) by striking out paragraph (3); and
                    (B) by redesignating paragraph (4) as 
                paragraph (3); and
            (3) by striking out subsection (l).

SEC. 1106. EXTENSION AND REVISION OF VOLUNTARY SEPARATION INCENTIVE PAY 
                    AUTHORITY.

    (a) Remittance to CSRS Fund.--Section 5597 of title 5, 
United States Code, is amended by adding at the end the 
following new subsection:
    ``(h)(1)(A) In addition to any other payment that it is 
required to make under subchapter III of chapter 83 or chapter 
84, the Department of Defense shall remit to the Office of 
Personnel Management an amount equal to 15 percent of the final 
basic pay of each covered employee.
    ``(B) If the employee is one with respect to whom a 
remittance would otherwise be required under section 4(a) of 
the Federal Workforce Restructuring Act of 1994 based on the 
separation involved, the remittance under this subsection shall 
be instead of the remittance otherwise required under such 
section 4(a).
    ``(2) Amounts remitted under paragraph (1) shall be 
deposited in the Treasury of the United States to the credit of 
the Civil Service Retirement and Disability Fund.
    ``(3) For the purposes of this subsection--
            ``(A) the term `covered employee' means an employee 
        who is subject to subchapter III of chapter 83 or 
        chapter 84 and to whom a voluntary separation incentive 
        has been paid under this section on the basis of a 
        separation occurring on or after October 1, 1997; and
            ``(B) the term `final basic pay' has the meaning 
        given such term in section 4(a)(2) of the Federal 
        Workforce Restructuring Act of 1994.''.
    (b) Extension of Authority.--(1) Subsection (e) of section 
5597 of title 5, United States Code, is amended by striking out 
``September 30, 1999'' and inserting in lieu thereof 
``September 30, 2001''.
    (2) Section 4436(d)(2) of the Defense Conversion, 
Reinvestment, and Transition Assistance Act of 1992 (5 U.S.C. 
8348 note) is amended by striking out ``January 1, 2000'' and 
inserting in lieu thereof ``January 1, 2002''.

SEC. 1107. USE OF APPROVED FIRE-SAFE ACCOMMODATIONS BY GOVERNMENT 
                    EMPLOYEES ON OFFICIAL BUSINESS.

    (a) Percentage Use Requirement.--Section 5707a of title 5, 
United States Code, is amended--
            (1) by redesignating subsections (a) through (d) as 
        subsections (b) through (e), respectively; and
            (2) by inserting after the section heading the 
        following new subsection:
    ``(a)(1) For the purpose of making payments under this 
chapter for lodging expenses incurred in a State, each agency 
shall ensure that not less than 90 percent of the commercial-
lodging room nights for employees of that agency for a fiscal 
year are booked in approved places of public accommodation.
    ``(2) Each agency shall establish explicit procedures to 
satisfy the percentage requirement of paragraph (1).
    ``(3) An agency shall be considered to be in compliance 
with the percentage requirement of paragraph (1) until 
September 30, 2002, and after that date if travel arrangements 
of the agency, whether made for civilian employees, members of 
the uniformed services, or foreign service personnel, are made 
through travel management processes designed to book commercial 
lodging in approved places of public accommodation, whenever 
available.''.
    (b) Definitions.--Such section is further amended by adding 
at the end the following new subsection:
    ``(f) For purposes of this section:
            ``(1) The term `agency' does not include the 
        government of the District of Columbia.
            ``(2) The term `approved places of public 
        accommodation' means hotels, motels, and other places 
        of public accommodation that are listed by the Director 
        of the Federal Emergency Management Agency as meeting 
        the requirements of the fire prevention and control 
        guidelines described in section 29 of the Federal Fire 
        Prevention and Control Act of 1974 (15 U.S.C. 2225).
            ``(3) The term `State' means any State, the 
        District of Columbia, the Commonwealth of Puerto Rico, 
        the Commonwealth of the Northern Mariana Islands, the 
        Trust Territory of the Pacific Islands, the Virgin 
        Islands, Guam, American Samoa, or any other territory 
        or possession of the United States.''.
    (c) Conforming Amendments.--Such section is further 
amended--
            (1) in subsection (b), as redesignated by 
        subsection (a)(1)--
                    (A) by striking out ``places of public 
                accommodation that meet the requirements of the 
                fire prevention and control guidelines 
                described in section 29 of the Federal Fire 
                Prevention and Control Act of 1974'' and 
                inserting in lieu thereof ``approved places of 
                public accommodation''; and
                    (B) by striking out ``as defined in section 
                4 of the Federal Fire Prevention and Control 
                Act of 1974'';
            (2) in subsection (c), as redesignated by 
        subsection (a)(1), by striking out ``does not meet the 
        requirements of the fire prevention and control 
        guidelines described in section 29 of the Federal Fire 
        Prevention and Control Act of 1974'' and inserting in 
        lieu thereof ``is not an approved place of public 
        accommodation''; and
            (3) in subsection (e), as redesignated by 
        subsection (a)(1)--
                    (A) by striking out ``encourage'' and 
                inserting in lieu thereof ``facilitate the 
                ability of ''; and
                    (B) by striking out ``places of public 
                accommodation that meet the requirements of the 
                fire prevention and control guidelines 
                described in section 29 of the Federal Fire 
                Prevention and Control Act of 1974'' and 
                inserting in lieu thereof ``approved places of 
                public accommodation''.
    (d) Report by Federal Emergency Management Agency.--Not 
later than six months after the date of the enactment of this 
Act, the Director of the Federal Emergency Management Agency 
shall submit to Congress a report describing the procedures to 
be used to ensure that all approved places of public 
accommodation (within the meaning of section 5707a(f)(2) of 
title 5, United States Code, as added by subsection (b)) appear 
on the national master list maintained by the Director under 
section 28(b) of the Federal Fire Prevention and Control Act of 
1974 (15 U.S.C. 2224(b)) of all of the places of public 
accommodation affecting commerce located in each State that 
meet the requirements of the fire prevention and control 
guidelines described in section 29 of such Act (15 U.S.C. 
2225).
    (e) Report on Implementation.--Not later than one year 
after the date of the enactment of this Act, the Administrator 
of General Services shall submit to Congress a report 
describing the measures that have been taken and will be taken 
by Federal agencies to comply with the requirement that not 
less than 90 percent of the commercial-lodging room nights for 
employees of each Federal agency for a fiscal year are booked 
in approved places of public accommodation, as specified in 
section 5707a(a) of title 5, United States Code, as added by 
subsection (a). Measures to satisfy such requirement may 
include the use of contract travel agents, automated booking 
systems, and data developed from travel payment systems. The 
Administrator shall prepare the report in consultation with the 
heads of the Federal agencies subject to such requirement.

SEC. 1108. NAVY HIGHER EDUCATION PILOT PROGRAM REGARDING ADMINISTRATION 
                    OF BUSINESS RELATIONSHIPS BETWEEN GOVERNMENT AND 
                    PRIVATE SECTOR.

    (a) Pilot Project Authorized.--During fiscal years 1998 
through 2002, the Secretary of the Navy may establish and 
conduct a pilot program of graduate-level higher education 
regarding the administration of business relationships between 
the Government and the private sector.
    (b) Purpose.--The purpose of the pilot program is to make 
available to employees of the Naval Undersea Warfare Center, 
employees of the Naval Sea Systems Command, and employees of 
the Acquisition Center for Excellence of the Navy (upon 
establishment of such Acquisition Center), a curriculum of 
graduate-level higher education leading to the award of a 
graduate degree designed to prepare participants effectively to 
meet the challenges of administering Government contracting and 
other business relationships between the United States and 
private sector businesses in the context of constantly changing 
or newly emerging industries, technologies, governmental 
organizations, policies, and procedures (including governmental 
organizations, policies, and procedures recommended in the 
National Performance Review).
    (c) Partnership With Institution of Higher Education.--(1) 
The Secretary of the Navy may enter into an agreement with an 
institution of higher education to assist the Naval Undersea 
Warfare Center with the development of the curriculum for the 
pilot program, to offer courses and provide instruction and 
materials to participants to the extent provided for in the 
agreement, to provide such other assistance in support of the 
program as may be provided for in the agreement, and to award a 
graduate degree under the program.
    (2) To be eligible to enter into an agreement under 
paragraph (1), an institution of higher education must have an 
established program of graduate-level education that is 
relevant to the purpose of the pilot program.
    (d) Curriculum.--The curriculum offered under the pilot 
program shall--
            (1) be designed specifically to achieve the purpose 
        of the pilot program; and
            (2) include courses that are--
                    (A) typically offered under curricula 
                leading to award of the degree of Masters of 
                Business Administration by institutions of 
                higher education; and
                    (B) necessary for meeting educational 
                qualification requirements for certification as 
                an acquisition program manager.
    (e) Distance Learning Option.--The Secretary of the Navy 
may include as part of the pilot program policies and 
procedures for offering distance learning instruction by means 
of telecommunications, correspondence, or other methods for 
off-site receipt of instruction.
    (f) Report.--Not later than 90 days after the termination 
of the pilot program, the Secretary of the Navy shall submit to 
Congress a report containing--
            (1) an assessment by the Secretary of the value of 
        the program for meeting the purpose of the program and 
        the desirability of permanently establishing a similar 
        program for other employees of the Department of 
        Defense; and
            (2) such other information and recommendations 
        regarding the program as the Secretary considers 
        appropriate.
    (g) Limitation on Funding Source.--Any funds required for 
the pilot program for a fiscal year shall be derived only from 
the appropriation ``Operation and Maintenance, Navy'' for that 
fiscal year.

SEC. 1109. AUTHORITY FOR MARINE CORPS UNIVERSITY TO EMPLOY CIVILIAN 
                    FACULTY MEMBERS.

    (a) Expanded Authority.--Subsections (a) and (c) of section 
7478 of title 10, United States Code, are amended by striking 
out ``at the Marine Corps Command and Staff College'' and 
inserting in lieu thereof ``of the Marine Corps University''.
    (b) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 7478. Naval War College and Marine Corps University: civilian 
                    faculty members''.

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 643 of such title is 
amended to read as follows:

``7478. Naval War College and Marine Corps University: civilian faculty 
          members.''.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Withdrawal of United States ground forces from Republic of 
          Bosnia and Herzegovina.
Sec. 1204. Secretary of Defense reports on tasks carried out by United 
          States forces.
Sec. 1205. Presidential report on situation in Republic of Bosnia and 
          Herzegovina.
Sec. 1206. Definitions.

        Subtitle B--Export Controls on High Performance Computers

Sec. 1211. Export approvals for high performance computers.
Sec. 1212. Report on exports of high performance computers.
Sec. 1213. Post-shipment verification of export of high performance 
          computers.
Sec. 1214. GAO study on certain computers; end user information 
          assistance.
Sec. 1215. Congressional committees.

                        Subtitle C--Other Matters

Sec. 1221. Defense burdensharing.
Sec. 1222. Temporary use of general purpose vehicles and nonlethal 
          military equipment under acquisition and cross servicing 
          agreements.
Sec. 1223. Sense of Congress and reports regarding financial costs of 
          enlargement of the North Atlantic Treaty Organization.
Sec. 1224. Sense of Congress regarding enlargement of the North Atlantic 
          Treaty Organization.
Sec. 1225. Sense of the Congress relating to level of United States 
          military personnel in the East Asia and Pacific region.
Sec. 1226. Report on future military capabilities and strategy of the 
          People's Republic of China.
Sec. 1227. Sense of Congress on need for Russian openness on the 
          Yamantau Mountain project.
Sec. 1228. Assessment of the Cuban threat to United States national 
          security.
Sec. 1229. Report on Helsinki Joint statement.
Sec. 1230. Commendation of Mexico on free and fair elections.
Sec. 1231. Sense of Congress regarding Cambodia.
Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

SEC. 1201. FINDINGS.

    The Congress finds the following:
            (1) United States Armed Forces were deployed to the 
        Republic of Bosnia and Herzegovina as part of the North 
        Atlantic Treaty Organization (NATO) Implementation 
        Force (IFOR) to implement the military aspects of the 
        Dayton Peace Agreement.
            (2) The military aspects of the Dayton Peace 
        Agreement have been successfully implemented to date 
        with the military forces of the warring factions 
        successfully separated and a cessation in the 
        hostilities that resulted in the deaths of hundreds of 
        thousands of Bosnians.
            (3) Implementation of the civil aspects of the 
        Dayton Peace Agreement has lagged far behind the 
        schedule for such implementation envisioned in the 
        Agreement with the result that United States Armed 
        Forces have undertaken a prolonged engagement in the 
        Republic of Bosnia and Herzegovina.
            (4) On December 13, 1995, the President stated in a 
        letter to Congress, ``NATO and U.S. military commanders 
        believe, and I expect, that the military mission can be 
        accomplished in about a year. Twelve months will allow 
        IFOR time to complete the military tasks assigned in 
        the Dayton agreement and to establish a secure 
        environment, in which political and economic 
        reconstruction efforts by the parties and international 
        civilian agencies can take hold. Within one year, we 
        expect that the military provisions of the Dayton 
        agreement will have been carried out, implementation of 
        the civilian aspects and economic reconstruction will 
        have been firmly launched, free elections will have 
        been held under international supervision and a stable 
        military balance will have been established.''
            (5) Notwithstanding a number of assurances relating 
        to the accomplishment of the military mission in the 
        Republic of Bosnia and Herzegovina by December 1996, 
        the President, on November 15, 1996, announced his 
        decision to extend the presence of United States forces 
        in the Republic of Bosnia and Herzegovina to 
        participate in the NATO Stabilization Force (SFOR) 
        until June 1998.
            (6) Despite initial projections by the Department 
        of Defense that the costs of United States operations 
        in the Republic of Bosnia and Herzegovina would total 
        $1,500,000,000, the projected cost of United States 
        operations in the Republic of Bosnia and Herzegovina 
        through June 1998 is estimated to exceed 
        $7,000,000,000.
            (7) The fiscal year 1998 estimate of the Department 
        of Defense for operations in the Republic of Bosnia and 
        Herzegovina assumes that the level of military forces 
        participating in SFOR will be reduced soon after the 
        start of the fiscal year.
            (8) The President and the Secretary of Defense have 
        stated that United States forces are to be withdrawn 
        from the Republic of Bosnia and Herzegovina by the end 
        of June 1998.

SEC. 1202. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) United States ground combat forces should not 
        participate in a follow-on force in the Republic of 
        Bosnia and Herzegovina after June 1998;
            (2) the European Security and Defense Identity, 
        which, as facilitated by the Combined Joint Task Forces 
        concept, enables the Western European Union, with the 
        consent of the North Atlantic Alliance, to assume 
        political control and strategic direction of NATO 
        assets made available for the Alliance, may be an ideal 
        instrument for a follow-on force for the Republic of 
        Bosnia and Herzegovina;
            (3) a NATO-led force without the participation of 
        United States ground combat forces in the Republic of 
        Bosnia and Herzegovina may be suitable for a follow-on 
        force for the Republic of Bosnia and Herzegovina if the 
        European Security and Defense Identity is not 
        sufficiently developed or is otherwise considered 
        inappropriate for such a mission;
            (4) the United States may decide to provide 
        appropriate support to a Western European Union-led or 
        NATO-led follow-on force, including command and 
        control, intelligence, logistics, and, if necessary, a 
        ready reserve force in the region;
            (5) the President should inform our European NATO 
        allies of this expression of the sense of Congress and 
        should urge them strongly to undertake preparations for 
        a Western European Union-led or NATO-led force as a 
        follow-on force to the NATO-led SFOR if needed to 
        maintain peace and stability in the Republic of Bosnia 
        and Herzegovina; and
            (6) the President should consult with the Congress 
        with respect to any support to be provided to a Western 
        European Union-led or NATO-led follow-on force in the 
        Republic of Bosnia and Herzegovina after June 30, 1998.

SEC. 1203. WITHDRAWAL OF UNITED STATES GROUND FORCES FROM REPUBLIC OF 
                    BOSNIA AND HERZEGOVINA .

    (a) Limitation.--No funds appropriated or otherwise made 
available for the Department of Defense for fiscal year 1998 or 
any subsequent fiscal year may be used for the deployment of 
any United States ground combat forces in the Republic of 
Bosnia and Herzegovina after June 30, 1998, unless the 
President, not later than May 15, 1998, and after consultation 
with the bipartisan leadership of the two Houses of Congress, 
transmits to Congress a certification--
            (1) that the continued presence of United States 
        ground combat forces, after June 30, 1998, in the 
        Republic of Bosnia and Herzegovina is required in order 
        to meet the national security interests of the United 
        States; and
            (2) that after June 30, 1998, it will remain United 
        States policy that United States ground forces will not 
        serve as, or be used as, civil police in the Republic 
        of Bosnia and Herzegovina.
    (b) Report.--The President shall submit with the 
certification under subsection (a) a report that includes the 
following:
            (1) The reasons why that presence is in the 
        national security interest of the United States.
            (2) The number of United States military personnel 
        to be deployed in and around the Republic of Bosnia and 
        Herzegovina and other areas of the former Yugoslavia 
        after that date.
            (3) The expected duration of any such deployment.
            (4) The mission and objectives of the United States 
        Armed Forces to be deployed in and around the Republic 
        of Bosnia and Herzegovina and other areas of the former 
        Yugoslavia after June 30, 1998.
            (5) The exit strategy of such forces.
            (6) The incremental costs associated with any such 
        deployment.
            (7) The effect of such deployment on the morale, 
        retention, and effectiveness of United States armed 
        forces.
            (8) A description of the forces from other nations 
        involved in a follow-on mission, shown on a nation-by-
        nation basis.
            (9) A description of the command and control 
        arrangement established for United States forces 
        involved in a follow-on mission.
            (10) An assessment of the expected threats to 
        United States forces involved in a follow-on mission.
            (11) The plan for rotating units and personnel to 
        and from the Republic of Bosnia and Herzegovina during 
        a follow-on mission, including the level of 
        participation by reserve component units and personnel.
            (12) The mission statement and operational goals of 
        the United States forces involved in a follow-on 
        mission.
    (c) Request for Supplemental Appropriations.--The President 
shall transmit to Congress with a certification under 
subsection (a) a supplemental appropriations request for the 
Department of Defense for such amounts as are necessary for the 
costs of any continued deployment beyond June 30, 1998.
    (d) Construction With President's Constitutional 
Authority.--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.
    (e) Construction With Appropriations Provision.--The 
provisions of this section are enacted, and shall be applied, 
as supplemental to (and not in lieu of) the provisions of 
section 8132 of the Department of Defense Appropriations Act, 
1998 (Public Law 105-56).

SEC. 1204. SECRETARY OF DEFENSE REPORTS ON TASKS CARRIED OUT BY UNITED 
                    STATES FORCES.

    (a) Requirement for Two Reports.--The Secretary of Defense 
shall submit to the congressional defense committees--
            (1) not later than December 15, 1997, a report 
        identifying each activity being carried out, as of 
        December 1, 1997, by covered United States forces in 
        the Republic of Bosnia and Herzegovina; and
            (2) not later than April 15, 1998, a report 
        identifying each activity being carried out, as of 
        April 1, 1998, by covered United States forces in the 
        Republic of Bosnia and Herzegovina.
    (b) Covered United States Forces.--For purposes of this 
section, covered United States forces in the Republic of Bosnia 
and Herzegovina are United States ground forces in the Republic 
of Bosnia and Herzegovina that are assigned to the 
multinational peacekeeping force known as the Stabilization 
Force (SFOR) or any other multinational peacekeeping force that 
is the successor to the SFOR.
    (c) Matters To Be Included.--The Secretary shall include in 
each report under subsection (a), for each activity identified 
under that subsection, the following:
            (1) The number of United States military personnel 
        involved in the performance of that activity.
            (2) Whether forces assigned to the SFOR (or 
        successor multinational peacekeeping force) from other 
        nations also participated in that activity.
            (3) The justification for using military forces 
        rather than civilian organizations to perform that 
        activity.
            (4) In the case of activities that (as determined 
        by the Secretary) are considered to be supporting 
        tasks, as that term is used in paragraph 3 of Article 
        VI of Annex 1-A to the General Framework Agreement for 
        Peace in Bosnia and Herzegovina, the justification for 
        using military forces.
            (5) The likelihood that each such activity will 
        have to be carried out by United States military forces 
        after June 30, 1998.

SEC. 1205. PRESIDENTIAL REPORT ON SITUATION IN REPUBLIC OF BOSNIA AND 
                    HERZEGOVINA.

    (a) Requirement.--Not later than February 1, 1998, the 
President shall submit to Congress a report on the political 
and military conditions in the Republic of Bosnia and 
Herzegovina. The report shall be submitted in both classified 
and unclassified form.
    (b) Matters To Be Included.--The report under subsection 
(a) shall include a discussion of the following:
            (1) An assessment of the progress made in 
        implementing the civil, economic, and political aspects 
        of the Dayton Peace Agreement.
            (2) An identification of the specific steps taken 
        to transfer the United States portion of the 
        peacekeeping mission in the Republic of Bosnia and 
        Herzegovina to forces of the member-states of the 
        Western European Union or to a NATO-led force without 
        the participation of United States ground combat forces 
        in the Republic of Bosnia and Herzegovina.
            (3) A detailed discussion of the proposed role and 
        involvement of the United States in supporting 
        peacekeeping activities in the Republic of Bosnia and 
        Herzegovina following the withdrawal of United States 
        ground combat forces from the Republic of Bosnia and 
        Herzegovina.
            (4) A detailed explanation and timetable for 
        carrying out the commitment to withdraw all United 
        States ground forces from the Republic of Bosnia and 
        Herzegovina by June 30, 1998, including the planned 
        date of commencement and completion of the withdrawal.
            (5) The military and political considerations that 
        will affect the decision to carry out such a 
        transition.
            (6) Any plan to maintain or expand other Bosnia-
        related operations (such as the operations designated 
        as Operation Deliberate Guard) if tensions in the 
        Republic of Bosnia and Herzegovina remain sufficient to 
        delay reductions of United States military forces 
        participating in the Stabilization Force and the 
        estimated cost associated with each such operation.

SEC. 1206. DEFINITIONS.

    As used in this subtitle:
            (1) Dayton peace agreement.--The term ``Dayton 
        Peace Agreement'' means the General Framework Agreement 
        for Peace in Bosnia and Herzegovina, initialed by the 
        parties in Dayton, Ohio, on November 21, 1995, and 
        signed in Paris on December 14, 1995.
            (2) Implementation force.--The term 
        ``Implementation Force'' means the NATO-led 
        multinational military force in the Republic of Bosnia 
        and Herzegovina (commonly referred to as ``IFOR''), 
        authorized under the Dayton Peace Agreement.
            (3) Stabilization force.--The term ``Stabilization 
        Force'' means the NATO-led follow-on force to the 
        Implementation Force in the Republic of Bosnia and 
        Herzegovina and other countries in the region (commonly 
        referred to as ``SFOR''), authorized under United 
        Nations Security Council Resolution 1088 (December 12, 
        1996).
            (4) Follow-on mission.--The term ``follow-on 
        mission'' means a mission involving the deployment of 
        ground elements of the United States Armed Forces in 
        the Republic of Bosnia and Herzegovina after June 30, 
        1998 (other than as described in section 1203(b)).
            (5) NATO.--The term ``NATO'' means the North 
        Atlantic Treaty Organization.

       Subtitle B--Export Controls on High Performance Computers

SEC. 1211. EXPORT APPROVALS FOR HIGH PERFORMANCE COMPUTERS.

    (a) Prior Approval of Exports and Reexports.--The President 
shall require that no digital computer with a composite 
theoretical performance level of more than 2,000 millions of 
theoretical operations per second (MTOPS) or with such other 
composite theoretical performance level as may be established 
subsequently by the President under subsection (d), may be 
exported or reexported without a license to a country specified 
in subsection (b) if the Secretary of Commerce, the Secretary 
of Defense, the Secretary of Energy, the Secretary of State, or 
the Director of the Arms Control and Disarmament Agency 
objects, in writing, to such export or reexport. Any person 
proposing to export or reexport such a digital computer shall 
so notify the Secretary of Commerce, who, within 24 hours after 
receiving the notification, shall transmit the notification to 
the Secretary of Defense, the Secretary of Energy, the 
Secretary of State, and the Director of the Arms Control and 
Disarmament Agency.
    (b) Covered Countries.--For purposes of subsection (a), the 
countries specified in this subsection are the countries listed 
as ``Computer Tier 3'' eligible countries in section 740.7(d) 
of title 15 of the Code of Federal Regulations, as in effect on 
June 10, 1997, subject to modification by the President under 
subsection (e).
    (c) Time Limit.--Written objections under subsection (a) to 
an export or reexport shall be raised within 10 days after the 
notification is received under subsection (a). If such a 
written objection to the export or reexport of a computer is 
raised, the computer may be exported or reexported only 
pursuant to a license issued by the Secretary of Commerce under 
the Export Administration Regulations of the Department of 
Commerce, without regard to the licensing exceptions otherwise 
authorized under section 740.7 of title 15 of the Code of 
Federal Regulations, as in effect on June 10, 1997. If no 
objection is raised within the 10-day period, the export or 
reexport is authorized.
    (d) Adjustment of Composite Theoretical Performance.--The 
President, in consultation with the Secretary of Commerce, the 
Secretary of Defense, the Secretary of Energy, the Secretary of 
State, and the Director of the Arms Control and Disarmament 
Agency, may establish a new composite theoretical performance 
level for purposes of subsection (a). Such new level shall not 
take effect until 180 days after the President submits to the 
congressional committees designated in section 1215 a report 
setting forth the new composite theoretical performance level 
and the justification for such new level. Each report shall, at 
a minimum--
            (1) address the extent to which high performance 
        computers of a composite theoretical level between the 
        level established in subsection (a) or such level as 
        has been previously adjusted pursuant to this section 
        and the new level, are available from other countries;
            (2) address all potential uses of military 
        significance to which high performance computers at the 
        new level could be applied; and
            (3) assess the impact of such uses on the national 
        security interests of the United States.
    (e) Adjustment of Covered Countries.--
            (1) In general.--The President, in consultation 
        with the Secretary of Commerce, the Secretary of 
        Defense, the Secretary of Energy, the Secretary of 
        State, and the Director of the Arms Control and 
        Disarmament Agency, may add a country to or remove a 
        country from the list of covered countries in 
        subsection (b), except that a country may be removed 
        from the list only in accordance with paragraph (2).
            (2) Deletions from list of covered countries.--The 
        removal of a country from the list of covered countries 
        under subsection (b) shall not take effect until 120 
        days after the President submits to the congressional 
        committees designated in section 1215 a report setting 
        forth the justification for the deletion.
            (3) Excluded countries.--A country may not be 
        removed from the list of covered countries under 
        subsection (b) if--
                    (A) the country is a ``nuclear-weapon 
                state'' (as defined by Article IX of the Treaty 
                on the Non-Proliferation of Nuclear Weapons) 
                and the country is not a member of the North 
                Atlantic Treaty Organization; or
                    (B) the country is not a signatory of the 
                Treaty on the Non-Proliferation of Nuclear 
                Weapons and the country is listed on Annex 2 to 
                the Comprehensive Nuclear Test-Ban Treaty.
    (f) Classification.--Each report under subsections (d) and 
(e) shall be submitted in an unclassified form and may, if 
necessary, have a classified supplement.

SEC. 1212. REPORT ON EXPORTS OF HIGH PERFORMANCE COMPUTERS.

    (a) Report.--Not later than 60 days after the date of the 
enactment of this Act, the President shall provide to the 
congressional committees specified in section 1215 a report 
identifying all exports of digital computers with a composite 
theoretical performance of more than 2,000 millions of 
theoretical operations per second (MTOPS) to all countries 
since January 25, 1996. For each export, the report shall 
identify--
            (1) whether an export license was applied for and 
        whether one was granted;
            (2) the date of the transfer of the computer;
            (3) the United States manufacturer and exporter of 
        the computer;
            (4) the MTOPS level of the computer; and
            (5) the recipient country and end user.
    (b) Additional Information on Exports to Certain 
Countries.--In the case of exports to countries specified in 
subsection (c), the report under subsection (a) shall identify 
the intended end use for the exported computer and the 
assessmentby the executive branch of whether the end user is a 
military end user or an end user involved in activities relating to 
nuclear, chemical, or biological weapons or missile technology. 
Information provided under this subsection may be submitted in 
classified form if necessary.
    (c) Covered Countries.--For purposes of subsection (b), the 
countries specified in this subsection are--
            (1) the countries listed as ``Computer Tier 3'' 
        eligible countries in section 740.7(d) of title 15 of 
        the Code of Federal Regulations, as in effect on June 
        10, 1997; and
            (2) the countries listed in section 740.7(e) of 
        title 15 of the Code of Federal Regulations, as in 
        effect on June 10, 1997.

SEC. 1213. POST-SHIPMENT VERIFICATION OF EXPORT OF HIGH PERFORMANCE 
                    COMPUTERS.

    (a) Required Post-Shipment Verification.--The Secretary of 
Commerce shall conduct post-shipment verification of each 
digital computer with a composite theoretical performance of 
more than 2,000 millions of theoretical operations per second 
(MTOPS) that is exported from the United States, on or after 
the date of the enactment of this Act, to a country specified 
in subsection (b).
    (b) Covered Countries.--For purposes of subsection (a), the 
countries specified in this subsection are the countries listed 
as ``Computer Tier 3'' eligible countries in section 740.7 of 
title 15 of the Code of Federal Regulations, as in effect on 
June 10, 1997, subject to modification by the President under 
section 1211(e).
    (c) Annual Report.--The Secretary of Commerce shall submit 
to the congressional committees specified in section 1215 an 
annual report on the results of post-shipment verifications 
conducted under this section during the preceding year. Each 
such report shall include a list of all such items exported 
from the United States to such countries during the previous 
year and, with respect to each such export, the following:
            (1) The destination country.
            (2) The date of export.
            (3) The intended end use and intended end user.
            (4) The results of the post-shipment verification.
    (d) Explanation When Verification Not Conducted.--If a 
post-shipment verification has not been conducted in accordance 
with subsection (a) with respect to any such export during the 
period covered by a report, the Secretary shall include in the 
report for that period a detailed explanation of the reasons 
why such a post-shipment verification was not conducted.

SEC. 1214. GAO STUDY ON CERTAIN COMPUTERS; END USER INFORMATION 
                    ASSISTANCE.

    (a) In General.--The Comptroller General of the United 
States shall submit to the congressional committees specified 
in section 1215 a study of the national security risks relating 
to the sale of computers with a composite theoretical 
performance of between 2,000 and 7,000 millions of theoretical 
operations per second (MTOPS) to end users in countries 
specified in subsection (c). The study shall also analyze any 
foreign availability of computers described in the preceding 
sentence and the impact of such sales on United States 
exporters.
    (b) End User Information Assistance to Exporters.--The 
Secretary of Commerce shall establish a procedure by which 
exporters may seek information on questionable end users in 
countries specified in subsection (c) who are seeking to obtain 
computers described in subsection (a).
    (c) Covered Countries.--For purposes of subsections (a) and 
(b), the countries specified in this subsection are the 
countries listed as ``Computer Tier 3'' eligible countries in 
section 740.7(d) of title 15 of the Code of Federal 
Regulations, as in effect on June 10, 1997.

SEC. 1215. CONGRESSIONAL COMMITTEES.

    For purposes of sections 1211(d), 1212(a), 1213(c), and 
1214(a) the congressional committees specified in those 
sections are the following:
            (1) The Committee on Banking, Housing, and Urban 
        Affairs and the Committee on Armed Services of the 
        Senate.
            (2) The Committee on International Relations and 
        the Committee on National Security of the House of 
        Representatives.

                       Subtitle C--Other Matters

SEC. 1221. DEFENSE BURDENSHARING.

    (a) Efforts To Increase Allied Burdensharing.--The 
President shall seek to have each nation that has cooperative 
military relations with the United States (including security 
agreements, basing arrangements, or mutual participation in 
multinational military organizations or operations) take one or 
more of the following actions:
            (1) For any nation in which United States military 
        personnel are assigned to permanent duty ashore, 
        increase its financial contributions to the payment of 
        the nonpersonnel costs incurred by the United States 
        Government for stationing United States military 
        personnel in that nation, with a goal of achieving by 
        September 30, 2000, 75 percent of such costs. An 
        increase in financial contributions by any nation under 
        this paragraph may include the elimination of taxes, 
        fees, or other charges levied on United States military 
        personnel, equipment, or facilities stationed in that 
        nation.
            (2) Increase its annual budgetary outlays for 
        national defense as a percentage of its gross domestic 
        product by 10 percent or at least to a level 
        commensurate that of the United States by September 30, 
        1998.
            (3) Increase its annual budgetary outlays for 
        foreign assistance (to promote democratization, 
        economic stabilization, transparency arrangements, 
        defense economic conversion, respect for the rule of 
        law, and internationally recognized human rights) by 10 
        percent or at least to a level commensurate to that of 
        the United States by September 30, 1998.
            (4) Increase the amount of military assets 
        (including personnel, equipment, logistics, support and 
        other resources) that it contributes, or would be 
        prepared to contribute, to multinational military 
        activities worldwide.
    (b) Authorities To Encourage Actions by United States 
Allies.--In seeking the actions described in subsection (a) 
with respect to any nation, or in response to a failure by any 
nation to undertake one or more of such actions, the President 
may take any of the following measures to the extent otherwise 
authorized by law:
            (1) Reduce the end strength level of members of the 
        Armed Forces assigned to permanent duty ashore in that 
        nation.
            (2) Impose on that nation fees or other charges 
        similar to those that such nation imposes on United 
        States forces stationed in that nation.
            (3) Reduce (through rescission, impoundment, or 
        other appropriate procedures as authorized by law) the 
        amount the United States contributes to the NATO Civil 
        Budget, Military Budget, or Security Investment 
        Program.
            (4) Suspend, modify, or terminate any bilateral 
        security agreement the United States has with that 
        nation, consistent with the terms of such agreement.
            (5) Reduce (through rescission, impoundment or 
        other appropriate procedures as authorized by law) any 
        United States bilateral assistance appropriated for 
        that nation.
            (6) Take any other action the President determines 
        to be appropriate as authorized by law.
    (c) Report on Progress in Increasing Allied 
Burdensharing.--Not later than March 1, 1998, the Secretary of 
Defense shall submit to Congress a report on--
            (1) steps taken by other nations to complete the 
        actions described in subsection (a);
            (2) all measures taken by the President, including 
        those authorized in subsection (b), to achieve the 
        actions described in subsection (a);
            (3) the difference between the amount allocated by 
        other nations for each of the actions described in 
        subsection (a) during the period beginning on March 1, 
        1996,and ending on February 28, 1997, and during the 
period beginning on March 1, 1997, and ending on February 28, 1998; and
            (4) the budgetary savings to the United States that 
        are expected to accrue as a result of the steps 
        described under paragraph (1).
    (d) Report on National Security Bases for Forward 
Deployment and Burdensharing Relationships.--(1) In order to 
ensure the best allocation of budgetary resources, the 
President shall undertake a review of the status of elements of 
the United States Armed Forces that are permanently stationed 
outside the United States. The review shall include an 
assessment of the following:
            (A) The alliance requirements that are to be found 
        in agreements between the United States and other 
        countries.
            (B) The national security interests that support 
        permanently stationing elements of the United States 
        Armed Forces outside the United States.
            (C) The stationing costs associated with the 
        forward deployment of elements of the United States 
        Armed Forces.
            (D) The alternatives available to forward 
        deployment (such as material prepositioning, enhanced 
        airlift and sealift, or joint training operations) to 
        meet such alliance requirements or national security 
        interests, with such alternatives identified and 
        described in detail.
            (E) The costs and force structure configurations 
        associated with such alternatives to forward 
        deployment.
            (F) The financial contributions that allies of the 
        United States make to common defense efforts (to 
        promote democratization, economic stabilization, 
        transparency arrangements, defense economic conversion, 
        respect for the rule of law, and internationally 
        recognized human rights).
            (G) The contributions that allies of the United 
        States make to meeting the stationing costs associated 
        with the forward deployment of elements of the United 
        States Armed Forces.
            (H) The annual expenditures of the United States 
        and its allies on national defense, and the relative 
        percentages of each nation's gross domestic product 
        constituted by those expenditures.
    (2) The President shall submit to Congress a report on the 
review under paragraph (1). The report shall be submitted not 
later than March 1, 1998, in classified and unclassified form.

SEC. 1222. TEMPORARY USE OF GENERAL PURPOSE VEHICLES AND NONLETHAL 
                    MILITARY EQUIPMENT UNDER ACQUISITION AND CROSS 
                    SERVICING AGREEMENTS.

    Section 2350(1) of title 10, United States Code, is amended 
by striking out ``other items'' in the second sentence and all 
that follows through ``United States Munitions List'' and 
inserting in lieu thereof ``other nonlethal items of military 
equipment which are not designated as significant military 
equipment on the United States Munitions List promulgated''.

SEC. 1223. SENSE OF CONGRESS AND REPORTS REGARDING FINANCIAL COSTS OF 
                    ENLARGEMENT OF THE NORTH ATLANTIC TREATY 
                    ORGANIZATION.

    (a) Findings.--Congress finds the following:
            (1) In a report to Congress in February 1997 on the 
        rationale, benefits, costs, and implications of North 
        Atlantic Treaty Organization enlargement the Secretary 
        of Defense estimated that the financial cost to the 
        United States of such enlargement will be modest, 
        totaling between $2,000,000,000 and $2,600,000,000 for 
        the period from 1997 through 2009.
            (2) A study by the RAND Corporation published in 
        1996 calculated that the total financial cost to the 
        United States of such enlargement will be between 
        $5,000,000,000 and $6,000,000,000 over the same period.
            (3) A March 1996 report by the Congressional Budget 
        Office on the financial costs of enlarging the North 
        Atlantic Treaty Organization alliance estimated the 
        United States share of alliance enlargement costs to be 
        between$4,800,000,000 and $18,900,000,000 through 2010, 
depending upon political developments in Europe.
            (4) An August 1997 report by the General Accounting 
        Office reviewing the financial cost estimates of the 
        Secretary of Defense concluded that North Atlantic 
        Treaty Organization enlargement could entail additional 
        costs beyond those included in the Secretary's estimate 
        and questioned the validity of the Secretary's estimate 
        due to the lack of supporting cost documentation and 
        the inclusion of cost elements not related to NATO 
        enlargement.
            (5) The North Atlantic Alliance is scheduled to 
        complete its analysis of the military requirements for 
        the integration of Poland, the Czech Republic, and 
        Hungary into the Alliance in December 1997.
            (6) The North Atlantic Alliance is also scheduled 
        to complete in December 1997 its financial cost 
        estimate of the military requirements related to the 
        integration of those nations.
    (b) Sense of Congress.--It is the sense of Congress that 
the analysis of the North Atlantic Alliance of the military 
requirements relating to NATO enlargement and of the financial 
costs to the Alliance of NATO enlargement will be one of the 
major factors in the consideration by the Senate of the 
ratification of instruments to approve the admission of new 
member nations to the Alliance and by Congress for the 
authorization and appropriation of the funding for the costs 
associated with such enlargement.
    (c) Report Assessing NATO Cost Analysis.--Not later than 
March 31, 1998, the Secretary of Defense shall submit to 
Congress a report providing--
            (1) an assessment of the analysis by the North 
        Atlantic Alliance of the military requirements related 
        to NATO enlargement and of the estimate of the 
        financial costs to the NATO Alliance for the 
        integration of Poland, the Czech Republic, and Hungary 
        into the Alliance;
            (2) a description of the analytical means used to 
        determine such requirements and costs; and
            (3) a general assessment of the additional military 
        requirements and costs that would result from a 
        significantly increased threat.
    (b) Report on Department of Defense Costs.--(1) The 
Secretary of Defense shall submit to Congress, in conjunction 
with the submission of the President's budget for fiscal year 
1999, a report on Department of Defense costs for NATO 
enlargement. The report shall include a detailed estimate of 
such costs for fiscal year 1998 that identifies all 
appropriations, by budget activity, for the military 
departments and other elements of the Department of Defense to 
support NATO enlargement.
    (2) The Secretary of Defense shall include in the budget 
justification materials submitted to Congress by the Secretary 
in support of the budget of Department of Defense for fiscal 
year 1999 complete and detailed descriptions and estimates of 
the amounts provided in that budget for the costs of NATO 
enlargement.

SEC. 1224. SENSE OF CONGRESS REGARDING ENLARGEMENT OF THE NORTH 
                    ATLANTIC TREATY ORGANIZATION.

    (a) Findings.--Congress makes the following findings:
            (1) The North Atlantic Treaty Organization (NATO) 
        met on July 8 and 9, 1997, in Madrid, Spain, and issued 
        invitations to the Czech Republic, Hungary, and Poland 
        to begin accession talks to join NATO.
            (2) Congress has expressed its support for the 
        process of NATO enlargement by approving the NATO 
        Enlargement Facilitation Act of 1996 (title VI of the 
        matter enacted in section 101(c) of division A of 
        Public Law 104-208; 22 U.S.C. 1928 note).
            (3) The United States has supported the position 
        that the process of enlarging NATO will continue after 
        the first round of invitations in July 1997.
            (4) Romania and Slovenia are to be commended for 
        their progress toward political and economic reform 
andappear to be striving to meet the guidelines for prospective 
membership in NATO.
            (5) In furthering the purpose and objective of NATO 
        in promoting stability and well-being in the North 
        Atlantic area, NATO should invite Romania and Slovenia 
        to accession negotiations to become NATO members as 
        expeditiously as possible upon the satisfaction of all 
        relevant membership criteria and consistent with NATO 
        security objectives.
    (b) Sense of Congress.--It is the sense of Congress that 
North Atlantic Treaty Organization should be commended--
            (1) for having committed to review the process of 
        enlarging the Organization in 1999; and
            (2) for singling out the positive developments 
        toward democracy and rule of law in Romania and 
        Slovenia.

SEC. 1225. SENSE OF CONGRESS RELATING TO LEVEL OF UNITED STATES 
                    MILITARY PERSONNEL IN THE EAST ASIA AND PACIFIC 
                    REGION.

    (a) Findings.--Congress finds the following:
            (1) The stability of the Asia-Pacific region is a 
        matter of vital national interest affecting the well-
        being of all Americans.
            (2) The nations of the Pacific Rim collectively 
        represent the United States largest trading partner and 
        are expected to account for almost one-third of the 
        world's economic activity by the start of the next 
        century.
            (3) The increased reliance by the United States on 
        trade and Middle East oil sources has reinforced United 
        States security interests in the Southeast Asia 
        shipping lanes through the South China Sea and the key 
        straits of Malacca, Sunda, Lombok, and Makassar.
            (4) The South China Sea is an important area for 
        United States Navy ships passing from the Pacific to 
        the Indian Ocean and the Persian Gulf.
            (5) Maintaining freedom of navigation in the South 
        China Sea is an important interest of the United 
        States.
            (6) The threats of proliferation of weapons of mass 
        destruction, the emerging nationalism amidst long-
        standing ethnic and national rivalries, and the 
        unresolved territorial disputes combine to create a 
        political landscape of potential instability and 
        conflict in this region that could jeopardize the 
        interests of the United States and the safety of United 
        States nationals.
            (7) A critical component of the East Asia strategy 
        of the United States is maintaining forward deployed 
        forces in Asia to ensure broad regional stability, to 
        help to deter aggression, to lessen the pressure for 
        arms races, and to contribute to the political and 
        economic advances of the region from which the United 
        States benefits.
            (8) The forward presence of the United States in 
        Northeast Asia enables the United States to respond to 
        regional contingencies, to protect sea lines of 
        communication, to sustain influence, and to support 
        operations as distant as operations in the Persian 
        Gulf.
            (9) The military forces of the United States serve 
        to prevent the political or economic control of the 
        Asia-Pacific region by a rival, hostile power or 
        coalition of such powers, thus preventing any such 
        group from obtaining control over the vast resources, 
        enormous wealth, and advanced technology of the region.
            (10) Allies of the United States in the region can 
        base their defense planning on a reliable American 
        security commitment, a reduction of which could 
        stimulate an arms buildup in the region.
            (11) The Joint Announcement of the United States-
        Japan Security Consultative Committee of December 1996, 
        acknowledged that ``the forward presence of U.S. forces 
        continues to be an essential element for pursuing our 
        common security objectives''.
            (12) The United States and Japan signed the United 
        States-Japan Security Declaration in April 1996, in 
        which the United States reaffirmed its commitment to 
        maintainthis level of 100,000 United States military 
personnel in the region.
            (13) The United States military presence is 
        recognized by the nations of the region as serving 
        stability and enabling United States engagement.
            (14) The nations of East Asia and the Pacific 
        consider the commitment of the forces of the United 
        States to be so vital to their future that they 
        scrutinize actions of the United States for any sign of 
        weakened commitment to the security of the region.
            (15) The reduction of forward-based military forces 
        could negatively affect the ability of the United 
        States to contribute to the maintenance of peace and 
        stability of the Asia and Pacific region.
            (16) Recognizing that while the United States must 
        consider the overall capabilities of its forces in its 
        decisions to deploy troops, nevertheless any reduction 
        in the number of forward-based troops may reduce the 
        perception of American capability and commitment in the 
        region that cannot be completely offset by 
        modernization of the remaining forces.
            (17) During time of crisis, deployment of forces to 
        East Asia, even though such forces were previously 
        removed from the area, might be deemed to be an act of 
        provocation that could be used as a pretext by a 
        hostile power for armed aggression within the region, 
        and the existence of that possibility might hinder such 
        a deployment.
            (18) Proposals to reduce the forward presence of 
        the United States in the East Asia region or 
        subordinate security interests to United States 
        domestic budgetary concerns can erode the perception of 
        the commitment of the United States to its alliances 
        and interests in the region.
    (b) Sense of Congress.--It is the sense of Congress that 
the United States should maintain at least approximately 
100,000 United States military personnel in the East Asia and 
Pacific region until such time as there is a peaceful and 
permanent resolution to the major security and political 
conflicts in the region.

SEC. 1226. REPORT ON FUTURE MILITARY CAPABILITIES AND STRATEGY OF THE 
                    PEOPLE'S REPUBLIC OF CHINA.

    (a) Report.--The Secretary of Defense shall prepare a 
report, in both classified and unclassified form, on the 
pattern of military modernization of the People's Republic of 
China. The report shall address the probable course of 
military-technological development in the People's Liberation 
Army and the development of Chinese security strategy and 
military strategy, and of military organizations and 
operational concepts, through 2015.
    (b) Matters To Be Included.--The report shall include 
analyses and forecasts of the following:
            (1) The goals of Chinese security strategy and 
        military strategy.
            (2) Trends in Chinese strategy regarding the 
        political goals of the People's Republic of China in 
        the Asia-Pacific region and its political and military 
        presence in other regions of the world, including 
        Central Asia, Southwest Asia, Europe, and Latin 
        America.
            (3) Developments in Chinese military doctrine, 
        focusing on (but not limited to) efforts to exploit an 
        emerging Revolution in Military Affairs or to conduct 
        preemptive strikes.
            (4) Efforts by the People's Republic of China to 
        enhance its capabilities in the area of nuclear weapons 
        development.
            (5) Efforts by the People's Republic of China to 
        develop long-range air-to-air or air defense missiles 
        that would provide the capability to target special 
        support aircraft such as Airborne Warning and Control 
        System (AWACS) aircraft, Joint Surveillance and Target 
        Attack Radar System (JSTARS) aircraft, or other command 
        and control, intelligence, airborne early warning, or 
        electronic warfare aircraft.
            (6) Efforts by the People's Republic of China to 
        develop a capability to conduct ``information warfare'' 
        at the strategic, operational, and tactical levels of 
        war.
            (7) Development by the People's Republic of China 
        of capabilities in the area of electronic warfare.
            (8) Efforts by the People's Republic of China to 
        develop a capability to establish control of space or 
        to deny access and use of military and commercial space 
        systems in times of crisis or war, including programs 
        to place weapons in space or to develop earth-based 
        weapons capable of attacking space-based systems.
            (9) Trends that would lead the People's Republic of 
        China toward the development of advanced intelligence, 
        surveillance, and reconnaissance capabilities, 
        including gaining access to commercial or third-party 
        systems with military significance.
            (10) Efforts by the People's Republic of China to 
        develop highly accurate and stealthy ballistic and 
        cruise missiles, including sea-launched cruise 
        missiles, particularly in numbers sufficient to conduct 
        attacks capable of overwhelming projected defense 
        capabilities in the Asia-Pacific region.
            (11) Development by the People's Republic of China 
        of command and control networks, particularly those 
        capable of battle management of long-range precision 
        strikes.
            (12) Efforts by the People's Republic of China in 
        the area of telecommunications, including common 
        channel signaling and synchronous digital hierarchy 
        technologies.
            (13) Development by People's Republic of China of 
        advanced aerospace technologies with military 
        applications (including gas turbine ``hot section'' 
        technologies).
            (14) Programs of the People's Republic of China 
        involving unmanned aerial vehicles, particularly those 
        with extended ranges or loitering times or potential 
        strike capabilities.
            (15) Exploitation by the People's Republic of China 
        for military purposes of the Global Positioning System 
        or other similar systems (including commercial land 
        surveillance satellites), with such analysis and 
        forecasts focusing particularly on indications of an 
        attempt to increase the accuracy of weapons or 
        situational awareness of operating forces.
            (16) Development by the People's Republic of China 
        of capabilities for denial of sea control, including 
        such systems as advanced sea mines, improved submarine 
        capabilities, or land-based sea-denial systems.
            (17) Efforts by the People's Republic of China to 
        develop its anti-submarine warfare capabilities.
            (18) Continued development by the People's Republic 
        of China of follow-on forces, particularly forces 
        capable of rapid air or amphibious assault.
            (19) Efforts by the People's Republic of China to 
        enhance its capabilities in such additional areas of 
        strategic concern as the Secretary identifies.
    (c) Analysis of Implications of Sales of Products and 
Technologies to Entities in China.--The report under subsection 
(a) shall include, with respect to each area for analyses and 
forecasts specified in subsection (b)--
            (1) an assessment of the military effects of sales 
        of United States and foreign products and technologies 
        to entities in the People's Republic of China; and
            (2) the potential threat of developments related to 
        such effects to United States strategic interests.
    (d) Submission of Report.--The report shall be submitted to 
Congress not later than March 15, 1998.

SEC. 1227. SENSE OF CONGRESS ON NEED FOR RUSSIAN OPENNESS ON THE 
                    YAMANTAU MOUNTAIN PROJECT.

    (a) Findings.--Congress finds as follows:
            (1) The United States and Russia have been working 
        since the end of the Cold War to achieve a strategic 
        relationship based on cooperation and openness between 
        the two nations.
            (2) This effort to establish a new strategic 
        relationship between the two nations has resulted in 
        the conclusion or agreement in principle on a number of 
        far-reaching agreements, including START I, II, and 
        III, a revision in the Conventional Forces in Europe 
        Treaty, and a series of other agreements (such as the 
        Comprehensive Test Ban Treaty and the Chemical Weapons 
        Convention), designed to further reduce bilateral 
        threats and limit the proliferation of weapons of mass 
        destruction.
            (3) These far-reaching agreements were based on the 
        understanding between the United States and Russia that 
        there would be a good faith effort on both sides to 
        comply with the letter and spirit of the agreements.
            (4) Reports indicate that Russia has been pursuing 
        construction of a massive underground facility of 
        unknown purpose at Yamantau Mountain and the city of 
        Mezhgorye (formerly the settlements of Beloretsk-15 and 
        Beloretsk-16) that is designed to survive a nuclear war 
        and appears to exceed reasonable defense requirements.
            (5) The Yamantau Mountain project does not appear 
        to be consistent with the lowering of strategic 
        threats, openness, and cooperation that is the basis of 
        the post-Cold War strategic partnership between the 
        United States and Russia.
            (6) The United States has allowed senior Russian 
        military and government officials to have access to key 
        strategic facilities of the United States by providing 
        tours of the North American Air Defense (NORAD) command 
        at Cheyenne Mountain and the United States Strategic 
        Command (STRATCOM) headquarters in Omaha, Nebraska, 
        among other sites, and by providing extensive briefings 
        on the operations of those facilities.
    (b) Sense of Congress.--It is the sense of Congress that 
the Russian government--
            (1) should provide to the United States Government 
        a written explanation with sufficient detail (including 
        drawings and diagrams) of the purpose and operational 
        concept of the completed and planned facilities at 
        Yamantau Mountain to support a high confidence judgment 
        by the United States that the design of the Yamantau 
        facility is consistent with official Russian government 
        explanations; and
            (2) should allow a United States delegation, to 
        include officials of the executive branch and Members 
        of Congress, to have access to the Yamantau Mountain 
        project and buildings and facilities surrounding the 
        project.

SEC. 1228. ASSESSMENT OF THE CUBAN THREAT TO UNITED STATES NATIONAL 
                    SECURITY.

    (a) Findings.--Congress makes the following findings:
            (1) Cuba has maintained a hostile policy in its 
        relations with the United States for over 35 years.
            (2) The United States, as a sovereign nation, must 
        be able to respond to any Cuban provocation and defend 
        the people and territory of the United States against 
        any attack.
            (3) In 1994, the Government of Cuba callously 
        encouraged a massive exodus of Cubans, by boat and 
        raft, toward the United States during which countless 
        numbers of those Cubans lost their lives on the high 
        seas.
            (4) The humanitarian response of the United States 
        to rescue, shelter, and provide emergency care to those 
        Cubans, together with the actions taken to absorb some 
        30,000 of those Cubans into the United States, required 
        significant efforts and the expenditure of hundreds of 
        millions of dollars for the costs incurred by the 
        United States and State and local governments in 
        connection with those efforts.
            (5) On February 24, 1996, Cuban MiG aircraft 
        attacked and destroyed, in international airspace, two 
        unarmed civilian aircraft flying from the United 
        States, and the four persons in those unarmed civilian 
        aircraft were killed.
            (6) Since that attack, the Cuban government has 
        issued no apology for the attack, nor has it indicated 
        any intention to conform its conduct to international 
        law that isapplicable to civilian aircraft operating in 
international airspace.
    (b) Review and Assessment.--The Secretary of Defense shall 
carry out a comprehensive review and assessment of--
            (1) Cuban military capabilities; and
            (2) the threats to the national security of the 
        United States that may be posed by Cuba, including--
                    (A) such unconventional threats as (i) 
                encouragement of massive and dangerous 
                migration, and (ii) attacks on citizens and 
                residents of the United States while they are 
                engaged in peaceful protest in international 
                waters or airspace;
                    (B) the potential for development and 
                delivery of chemical or biological weapons; and
                    (C) the potential for internal strife in 
                Cuba that could involve citizens or residents 
                of the United States or the Armed Forces of the 
                United States.
    (c) Report.--Not later than March 31, 1998, the Secretary 
of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives a report on the review and assessment. The 
report shall include the following:
            (1) The Secretary's assessment of the capabilities 
        and threats referred to in subsection (b), including 
        each of the threats described in paragraph (2) of that 
        subsection.
            (2) A discussion of the results of the review and 
        assessment, including an assessment of the contingency 
        plans developed by the Secretary to counter any threat 
        posed by Cuba to the United States.
    (d) Consultation on Review and Assessment.--In performing 
the review and assessment and in preparing the report, the 
Secretary of Defense shall consult with the Chairman of the 
Joint Chiefs of Staff, the commander of the United States 
Southern Command, and the heads of other appropriate 
departments and agencies of the United States.

SEC. 1229. REPORT ON HELSINKI JOINT STATEMENT.

    (a) Requirement.--Not later than March 31, 1998, the 
President shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives a report on the Helsinki Joint Statement on 
future reductions in nuclear forces. The report shall address 
the United States approach (including verification 
implications) to implementing the Helsinki Joint Statement, in 
particular, as that Statement relates to the following:
            (1) Lower aggregate levels of strategic nuclear 
        warheads.
            (2) Measures relating to the transparency of 
        strategic nuclear warhead inventories and the 
        destruction of strategic nuclear warheads.
            (3) Deactivation of strategic nuclear delivery 
        vehicles.
            (4) Measures relating to nuclear long-range sea-
        launched cruise missiles and tactical nuclear systems.
            (5) Issues related to transparency in nuclear 
        materials.
    (b) Definition.--For purposes of this section, the term 
``Helsinki Joint Statement'' means the agreements between the 
President of the United States and the President of the Russian 
Federation as contained in the Joint Statement on Parameters on 
Future Reductions in Nuclear Forces issued at Helsinki in March 
1997.

SEC. 1230. COMMENDATION OF MEXICO ON FREE AND FAIR ELECTIONS.

    (a) Findings.--Congress makes the following findings:
            (1) On July 6, 1997, elections were conducted in 
        Mexico in order to fill 500 seats in the Chamber of 
        Deputies, 32 seats in the 128 seat Senate, the office 
        of the Mayor of Mexico City, and local elections in a 
        number of Mexican States.
            (2) For the first time, the federal elections were 
        organized by the Federal Electoral Institute, an 
        autonomous and independent organization established 
        under the Mexican Constitution.
            (3) More than 52,000,000 Mexican citizens 
        registered to vote.
            (4) Eight political parties registered to 
        participate in the those elections, including the 
        Institutional Revolutionary Party (PRI), the National 
        Action Party (PAN), and the Democratic Revolutionary 
        Party (PRD).
            (5) Since 1993, Mexican citizens have had the 
        exclusive right to participate as observers in 
        activities related to the preparation and the conduct 
        of elections.
            (6) Since 1994, Mexican law has permitted 
        international observers to be a part of the election 
        process.
            (7) With 84 percent of the ballots counted, PRI 
        candidates received 38 percent of the vote for seats in 
        the Chamber of Deputies, while PRD and PAN candidates 
        received 52 percent of the combined vote.
            (8) PRD candidate Cuauhtemoc Cardenas Solorzano has 
        become the first elected Mayor of Mexico City, a post 
        previously appointed by the President.
            (9) PAN members will now serve as governors in 
        seven of Mexico's 31 States.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the recent elections in Mexico were conducted 
        in a free, fair, and impartial manner;
            (2) the will of the Mexican people, as expressed 
        through the ballot box, has been respected by President 
        Ernesto Zedillo and officials throughout his 
        administration; and
            (3) President Zedillo, the Mexican Government, the 
        Federal Electoral Institute of Mexico, the political 
        parties and candidates, and most importantly the 
        citizens of Mexico should all be congratulated for 
        their support and participation in these very historic 
        elections.

SEC. 1231. SENSE OF CONGRESS REGARDING CAMBODIA.

    (a) Findings.--Congress makes the following findings:
            (1) During the 1970s and 1980s, Cambodia was 
        wracked by political conflict, war, and violence, 
        including genocide perpetrated by the Khmer Rouge from 
        1975 to 1979.
            (2) The 1991 Paris Agreements on a Comprehensive 
        Political Settlement of the Cambodia Conflict set the 
        stage for a process of political accommodation and 
        national reconciliation among Cambodia's warring 
        parties.
            (3) The international community engaged in a 
        massive effort involving more than $2,000,000,000 to 
        ensure peace, democracy, and prosperity in Cambodia 
        following the Paris Accords.
            (4) The Cambodian people clearly demonstrated their 
        support for democracy when 90 percent of eligible 
        Cambodian voters participated in United Nations-
        sponsored elections in 1993.
            (5) Since the 1993 elections, Cambodia has made 
        economic progress, as shown by the recent decision of 
        the Association of Southeast Asian Nations (ASEAN) to 
        extend membership in the Association to Cambodia.
            (6) Tensions within the ruling Cambodian coalition 
        have erupted into violence.
            (7) In March 1997, 19 Cambodians were killed and 
        more than 100 were wounded in a grenade attack on 
        political demonstrators supportive of the Funcinpec and 
        the Khmer Nation Party.
            (8) During June 1997, fighting erupted in Phnom 
        Penh between forces loyal to First Prime Minister 
        Prince Ranariddh and Second Prime Minister Hun Sen.
            (9) On July 5, 1997, Second Prime Minister Hun Sen 
        deposed the First Prime Minister in a violent coup 
        d'etat.
            (10) Forces loyal to Hun Sen have executed former 
        Interior Minister Ho Sok and approximately 40 other 
        political opponents loyal to Prince Ranariddh.
            (11) Democracy and stability in Cambodia are 
        threatened by the continued use of violence and other 
        extralegal means to resolve political tensions.
            (12) In response to the July 1997 coup in Cambodia 
        referred to in paragraph (9)--
                    (A) the President has suspended all direct 
                assistance to the Cambodian Government; and
                    (B) the Association of Southeast Asian 
                Nations (ASEAN) has decided to delay 
                indefinitely admission of Cambodia to 
                membership in the Association.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the parties in Cambodia should immediately 
        cease the use of violence;
            (2) the United States should take all necessary 
        steps to ensure the safety of United States citizens in 
        Cambodia;
            (3) the United States should call an emergency 
        meeting of the United Nations Security Council to 
        consider all options to restore peace and democratic 
        governance in Cambodia;
            (4) the United States and the Association of 
        Southeast Asian Nations should work together to take 
        immediate steps to restore democracy and the rule of 
        law in Cambodia;
            (5) United States assistance to the Government of 
        Cambodia should remain suspended until violence ends, 
        the democratically elected Government is restored to 
        power, and the necessary steps have been taken to 
        ensure that the elections scheduled for 1998 take 
        place; and
            (6) the United States should take all necessary 
        steps to encourage other donor nations to suspend 
        assistance as part of a multilateral effort.

SEC. 1232. CONGRATULATING GOVERNOR CHRISTOPHER PATTEN OF HONG KONG.

    (a) Findings.--Congress makes the following findings:
            (1) His Excellency Christopher F. Patten, the 
        former Governor of Hong Kong, was the twenty-eighth and 
        last British Governor of the dependent territory of 
        Hong Kong before that territory reverted back to the 
        People's Republic of China on July 1, 1997.
            (2) Christopher Patten was a superb administrator 
        and an inspiration to the people whom he governed.
            (3) During Christopher Patten's five years as 
        Governor of Hong Kong, the economy flourished under his 
        stewardship, growing by more than 30 percent in real 
        terms.
            (4) Christopher Patten presided over a capable and 
        honest civil service.
            (5) During the tenure of Christopher Patten as 
        Governor of Hong Kong, common crime declined and the 
        political climate was positive and stable.
            (6) The legacy of Christopher Patten to Hong Kong 
        is the expansion of democracy in Hong Kong's 
        legislative council and a tireless devotion to the 
        rights, freedoms, and welfare of the people of Hong 
        Kong.
            (7) Christopher Patten fulfilled the commitment of 
        the British Government to ``put in place a solidly 
        based democratic administration'' in Hong Kong before 
        July 1, 1997.
    (b) Sense of Congress.--It is the sense of the Congress 
that Christopher F. Patten, the last British Governor of the 
dependent territory of Hong Kong--
            (1) served his country with great honor and 
        distinction in that capacity; and
            (2) deserves special thanks and recognition from 
        the United States for his tireless efforts to develop 
        and nurture democracy in Hong Kong.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Sec. 1301. Presidential report concerning detargeting of Russian 
          strategic missiles.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
          nuclear delivery systems.
Sec. 1303. Assistance for facilities subject to inspection under the 
          Chemical Weapons Convention.
Sec. 1304. Transfers of authorizations for high-priority 
          counterproliferation programs.
Sec. 1305. Advice to the President and Congress regarding the safety, 
          security, and reliability of United States nuclear weapons 
          stockpile.
Sec. 1306. Reconstitution of commission to assess the ballistic missile 
          threat to the United States.
Sec. 1307. Sense of Congress regarding the relationship between United 
          States obligations under the Chemical Weapons Convention and 
          environmental laws.
Sec. 1308. Extension of counterproliferation authorities for support of 
          United Nations Special Commission on Iraq.
Sec. 1309. Annual report on moratorium on use by Armed Forces of 
          antipersonnel landmines.

SEC. 1301. PRESIDENTIAL REPORT CONCERNING DETARGETING OF RUSSIAN 
                    STRATEGIC MISSILES.

    (a) Required Report.--Not later than January 1, 1998, the 
President shall submit to Congress a report concerning 
detargeting of Russian strategic missiles. The report shall 
address each of the following:
            (1) Whether a Russian ICBM that was formerly, but 
        is no longer, targeted at a site in the United States 
        would be automatically retargeted at a site in the 
        United States in the event of the accidental launch of 
        the missile.
            (2) Whether missile detargeting would prevent or 
        significantly reduce the possibility of an unauthorized 
        missile launch carried out by the Russian General Staff 
        and prevent or significantly reduce the consequences to 
        the United States of such a launch.
            (3) Whether missile detargeting would pose a 
        significant obstacle to an unauthorized launch carried 
        out by an operational level below the Russian General 
        Staff if missile operators at such an operational level 
        acquired missile launch codes or had the technical 
        expertise to override missile launch codes.
            (4) The plausibility of an accidental launch of a 
        Russian ICBM, compared to the possibility of a 
        deliberate missile launch, authorized or unauthorized, 
        resulting from Russian miscalculation, overreaction, or 
        aggression.
            (5) The national security benefits derived from 
        detargeting United States and Russian ICBMs.
            (6) The relative consequences to the United States 
        of an unauthorized or accidental launch of a Russian 
        ICBM that has been detargeted and one that has not been 
        detargeted.
    (b) Definitions.--For purposes of subsection (a):
            (1) The term ``Russian ICBM'' means an 
        intercontinental ballistic missile of the Russian 
        Federation.
            (2) The term ``accidental launch'' means a missile 
        launch resulting from mechanical failure.

SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC 
                    NUCLEAR DELIVERY SYSTEMS.

    (a) Funding Limitation.--Funds available to the Department 
of Defense may not be obligated or expended during fiscal year 
1998 for retiring or dismantling, or for preparing to retire or 
dismantle, any of the following strategic nuclear delivery 
systems below the specified levels:
            (1) 71 B-52H bomber aircraft.
            (2) 18 Trident ballistic missile submarines.
            (3) 500 Minuteman III intercontinental ballistic 
        missiles.
            (4) 50 Peacekeeper intercontinental ballistic 
        missiles.
    (b) Waiver Authority.--If the START II Treaty enters into 
force during fiscal year 1998, the Secretary of Defense may 
waive the application of the limitation under subsection (a) to 
the extent that the Secretary determines necessary in order to 
implement the treaty.
    (c) Funding Limitation on Early Deactivation.--(1) If the 
limitation under subsection (a) ceases to apply by reason of a 
waiver under subsection (b), funds available to the Department 
of Defense may nevertheless not be obligated or expended during 
fiscal year 1998 to implement any agreement or understanding to 
undertake substantial early deactivation of a strategic nuclear 
delivery system specified in subsection (a) until 30 days after 
the date on which the President submits to Congress a report 
concerning such actions.
    (2) For purposes of this subsection and subsection (d), a 
substantial early deactivation is an action during fiscal year 
1998 to deactivate a substantial number of strategic nuclear 
delivery systems specified in subsection (a) by--
            (A) removing nuclear warheads from those systems; 
        or
            (B) taking other steps to remove those systems from 
        combat status.
    (3) A report under this subsection shall include the 
following:
            (A) The text of any understanding or agreement 
        between the United States and the Russian Federation 
        concerning substantial early deactivation of strategic 
        nuclear delivery systems under the START II Treaty.
            (B) The plan of the Department of Defense for 
        implementing the agreement.
            (C) An assessment of the Secretary of Defense of 
        the adequacy of the provisions contained in the 
        agreement for monitoring and verifying compliance of 
        Russia with the terms of the agreement and, based upon 
        that assessment, the determination of the President 
        specifically as to whether the procedures for 
        monitoring and verification of compliance by Russia 
        with the terms of the agreement are adequate or 
        inadequate.
            (D) A determination by the President as to whether 
        the deactivations to occur under the agreement will be 
        carried out in a symmetrical, reciprocal, or equivalent 
        manner and whether the agreement will require early 
        deactivations of strategic forces by the United States 
        to be carried out substantially more rapidly than 
        deactivations of strategic forces by Russia.
            (E) An assessment by the President of the effect of 
        the proposed early deactivation on the stability of the 
        strategic balance and relative strategic nuclear 
        capabilities of the United States and the Russian 
        Federation at various stages during deactivation and 
        upon completion, including a determination by the 
        President specifically as to whether the proposed early 
        deactivations will adversely affect strategic 
        stability.
    (d) Further Limitation on Strategic Force Reductions.--(1) 
Amounts available to the Department of Defense for fiscal year 
1998 to implement an agreement that results in a substantial 
early deactivation during fiscal year 1998 of strategic forces 
may not be obligated for that purpose if in the report under 
subsection (c)(3) the President determines any of the 
following:
            (A) That procedures for monitoring and verification 
        of compliance by Russia with the terms of the agreement 
        are inadequate.
            (B) That the agreement will require early 
        deactivations of strategic forces by the United States 
        to be carried out substantially more rapidly than 
        deactivations of strategic forces by Russia.
            (C) That the proposed early deactivations will 
        adversely affect strategic stability.
    (2) The limitation in paragraph (1), if effective by reason 
of a determination by the President described in paragraph 
(1)(B), shall cease to apply 30 days after the date on which 
the President notifies Congress that the early deactivations 
under the agreement are in the national interest of the United 
States.
    (e) Contingency Plan for Sustainment of Systems.--(1) Not 
later then February 15, 1998, the Secretary of Defense shall 
submit to Congress a plan for the sustainment beyond October 1, 
1999, of United States strategic nuclear delivery systems and 
alternative Strategic Arms Reduction Treaty force structures in 
the event that a strategic arms reduction agreement subsequent 
to the Strategic Arms Reduction Treaty does not enter into 
force before 2004.
    (2) The plan shall include a discussion of the following 
matters:
            (A) The actions that are necessary to sustain the 
        United States strategic nuclear delivery systems, 
        distinguishing between the actions that are planned for 
        and funded in the future-years defense program and the 
        actions that are not planned for and funded in the 
        future-years defense program.
            (B) The funding necessary to implement the plan, 
        indicating the extent to which the necessary funding is 
        provided for in the future-years defense program and 
        the extent to which the necessary funding is not 
        provided for in the future-years defense program.
    (f) START Treaties Defined.--In this section:
            (1) The term ``Strategic Arms Reduction Treaty'' 
        means the Treaty Between the United States of America 
        and the United Soviet Socialist Republics on the 
        Reduction and Limitation of Strategic Offensive Arms 
        (START), signed at Moscow on July 31, 1991, including 
        related annexes on agreed statements and definitions, 
        protocols, and memorandum of understanding.
            (2) The term ``START II Treaty'' means the Treaty 
        Between the United States of America and the Russian 
        Federation on Further Reduction and Limitation of 
        Strategic Offensive Arms, signed at Moscow on January 
        3, 1993, including the following protocols and 
        memorandum of understanding, all such documents being 
        integral parts of and collectively referred to as the 
        ``START II Treaty'' (contained in Treaty Document 103-
        1):
                    (A) The Protocol on Procedures Governing 
                Elimination of Heavy ICBMs and on Procedures 
                Governing Conversion of Silo Launchers of Heavy 
                ICBMs Relating to the Treaty Between the United 
                States of America and the Russian Federation on 
                Further Reductionand Limitation of Strategic 
Offensive Arms (also known as the ``Elimination and Conversion 
Protocol'').
                    (B) The Protocol on Exhibitions and 
                Inspections of Heavy Bombers Relating to the 
                Treaty Between the United States and the 
                Russian Federation on Further Reduction and 
                Limitation of Strategic Offensive Arms (also 
                known as the ``Exhibitions and Inspections 
                Protocol'').
                    (C) The Memorandum of Understanding on 
                Warhead Attribution and Heavy Bomber Data 
                Relating to the Treaty Between the United 
                States of America and the Russian Federation on 
                Further Reduction and Limitation of Strategic 
                Offensive Arms (also known as the ``Memorandum 
                on Attribution'').

SEC. 1303. ASSISTANCE FOR FACILITIES SUBJECT TO INSPECTION UNDER THE 
                    CHEMICAL WEAPONS CONVENTION.

    (a) Assistance Authorized.--Upon the request of the owner 
or operator of a facility that is subject to a routine 
inspection or a challenge inspection under the Chemical Weapons 
Convention, the Secretary of Defense may provide technical 
assistance to that owner or operator related to compliance of 
that facility with the Convention. Any such assistance shall be 
provided through the On-Site Inspection Agency of the 
Department of Defense.
    (b) Reimbursement Requirement.--The Secretary may provide 
assistance under subsection (a) only to the extent that the 
Secretary determines that the Department of Defense will be 
reimbursed for costs incurred in providing the assistance. The 
United States National Authority may provide such reimbursement 
from amounts available to it. Any such reimbursement shall be 
credited to amounts available for the On-Site Inspection 
Agency.
    (c) Definitions.--In this section:
            (1) The terms ``Chemical Weapons Convention'' and 
        ``Convention'' mean the Convention on the Prohibition 
        of the Development, Production, Stockpiling and Use of 
        Chemical Weapons and on Their Destruction, ratified by 
        the United States on April 25, 1997, and entered into 
        force on April 29, 1997.
            (2) The term ``facility that is subject to a 
        routine inspection'' means a declared facility, as 
        defined in paragraph 15 of part X of the Annex on 
        Implementation and Verification of the Convention.
            (3) The term ``challenge inspection'' means an 
        inspection conducted under Article IX of the 
        Convention.
            (4) The term ``United States National Authority'' 
        means the United States National Authority established 
        or designated pursuant to Article VII, paragraph 4, of 
        the Convention.

SEC. 1304. TRANSFERS OF AUTHORIZATIONS FOR HIGH-PRIORITY 
                    COUNTERPROLIFERATION PROGRAMS.

    (a) Authority.--(1) Subject to paragraph (2), the Secretary 
of Defense may transfer amounts of authorizations made 
available to the Department of Defense in this division for 
fiscal year 1998 to any counterproliferation program, project, 
or activity described in subsection (b).
    (2) A transfer of authorizations may be made under this 
section only upon determination by the Secretary of Defense 
that such action is necessary in the national interest.
    (3) Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the 
authorization to which transferred.
    (b) Programs to Which Tranfers May Be Made.--The authority 
under subsection (a) applies to any counterproliferation 
program, project, or activity of the Department of Defense 
identified as an area for progress in the most recent annual 
report of the Counterproliferation Program Review Committee 
established by section 1605 of the National Defense 
Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note).
    (c) Limitation on Total Amount.--The total amount of 
authorizations transferred under the authority of this section 
may not exceed $50,000,000.
    (d) Other Limitations and Requirements.--The provisions of 
subsection (b), (c), and (d) of section 1001 shall apply to a 
transfer under this section in the same manner as they apply to 
a transfer under subsection (a) of that section.
    (e) Construction With General Transfer Authority.--The 
authority provided by this section is in addition to the 
transfer authority provided in section 1001.

SEC. 1305. ADVICE TO THE PRESIDENT AND CONGRESS REGARDING THE SAFETY, 
                    SECURITY, AND RELIABILITY OF UNITED STATES NUCLEAR 
                    WEAPONS STOCKPILE.

    (a) Findings.--Congress makes the following findings:
            (1) Nuclear weapons are the most destructive 
        weapons on earth. The United States and its allies 
        continue to rely on nuclear weapons to deter potential 
        adversaries from using weapons of mass destruction. The 
        safety and reliability of the nuclear weapons stockpile 
        are essential to ensure its credibility as a deterrent.
            (2) On September 24, 1996, President Clinton signed 
        the Comprehensive Test Ban Treaty.
            (3) Effective as of September 30, 1996, the United 
        States is prohibited by section 507 of the Energy and 
        Water Development Appropriations Act, 1993 (Public Law 
        102-377; 42 U.S.C. 2121 note) from conducting 
        underground nuclear tests ``unless a foreign state 
        conducts a nuclear test after this date, at which time 
        the prohibition on United States nuclear testing is 
        lifted''.
            (4) Section 1436(b) of the National Defense 
        Authorization Act, Fiscal Year 1989 (Public Law 100-
        456; 42 U.S.C. 2121 note) requires the Secretary of 
        Energy to ``establish and support a program to assure 
        that the United States is in a position to maintain the 
        reliability, safety, and continued deterrent effect of 
        its stockpile of existing nuclear weapons designs in 
        the event that a low-threshold or comprehensive test 
        ban on nuclear explosive testing is negotiated and 
        ratified.''.
            (5) Section 3138(d) of the National Defense 
        Authorization Act for Fiscal Year 1994 (Public Law 103-
        160; 42 U.S.C. 2121 note) required the President to 
        submit an annual report to Congress which sets forth 
        ``any concerns with respect to the safety, security, 
        effectiveness, or reliability of existing United States 
        nuclear weapons raised by the Stockpile Stewardship 
        Program of the Department of Energy''.
            (6) President Clinton declared in July 1993 that 
        ``to assure that our nuclear deterrent remains 
        unquestioned under a test ban, we will explore other 
        means of maintaining our confidence in the safety, 
        reliability, and the performance of our weapons''. This 
        decision was incorporated in a Presidential Directive.
            (7) Section 3138 of the National Defense 
        Authorization Act for Fiscal Year 1994 (Public Law 103-
        160; 42 U.S.C. 2121 note) also requires that the 
        Secretary of Energy establish a ``stewardship program 
        to ensure the preservation of the core intellectual and 
        technical competencies of the United States in nuclear 
        weapons''.
            (8) The plan of the Department of Energy to 
        maintain the safety and reliability of the United 
        States nuclear weapons stockpile is known as the 
        Stockpile Stewardship and Management Program. The 
        ability of the United States to maintain and certify 
        the safety, security, effectiveness, and reliability of 
        the nuclear weapons stockpile without testing will 
        require utilization of new and sophisticated 
        computational capabilities and diagnostic technologies, 
        methods, and procedures. Current diagnostic 
        technologies and laboratory testing techniques are 
        insufficient to certify the safety and reliability of 
        the United States nuclear weapons stockpile into the 
        future. Whereas in the past laboratory and diagnostic 
        tools were used in conjunction with nuclear testing, in 
        the future they will provide, under the Department of 
        Energy's stockpile stewardshipplan, the sole basis for 
assessing past test data and for making judgments on phenomena observed 
in connection with the aging of the stockpile.
            (9) Section 3159 of the National Defense 
        Authorization Act for Fiscal Year 1997 (Public Law 104-
        201; 42 U.S.C. 7274o) requires that the directors of 
        the nuclear weapons laboratories and the nuclear 
        weapons production plants submit a report to the 
        Assistant Secretary of Energy for Defense Programs if 
        they identify a problem that has significant bearing on 
        confidence in the safety or reliability of a nuclear 
        weapon or nuclear weapon type, that the Assistant 
        Secretary must transmit that report, along with any 
        comments, to the congressional defense committees and 
        to the Secretary of Energy and the Secretary of 
        Defense, and that the Joint Nuclear Weapons Council 
        advise Congress regarding its analysis of any such 
        problems.
            (10) On August 11, 1995, President Clinton directed 
        ``the establishment of a new annual reporting and 
        certification requirement [to] ensure that our nuclear 
        weapons remain safe and reliable under a comprehensive 
        test ban''.
            (11) On the same day, the President noted that the 
        Secretary of Defense and the Secretary of Energy have 
        the responsibility, after being ``advised by the 
        Nuclear Weapons Council, the Directors of DOE's nuclear 
        weapons laboratories, and the Commander of United 
        States Strategic Command'', to provide the President 
        with the information regarding the certification 
        referred to in paragraph (10).
            (12) The Joint Nuclear Weapons Council established 
        by section 179 of title 10, United States Code, is 
        responsible for providing advice to the Secretary of 
        Energy and Secretary of Defense regarding nuclear 
        weapons issues, including ``considering safety, 
        security, and control issues for existing weapons''. 
        The Council plays a critical role in advising Congress 
        in matters relating to nuclear weapons.
            (13) It is essential that the President receive 
        well-informed, objective, and honest opinions, 
        including dissenting views, from his advisers and 
        technical experts regarding the safety, security, 
        effectiveness, and reliability of the nuclear weapons 
        stockpile.
    (b) Policy.--
            (1) In general.--It is the policy of the United 
        States--
                    (A) to maintain a safe, secure, effective, 
                and reliable nuclear weapons stockpile; and
                    (B) as long as other nations control or 
                actively seek to acquire nuclear weapons, to 
                retain a credible nuclear deterrent.
            (2) Nuclear weapons stockpile.--It is in the 
        security interest of the United States to sustain the 
        United States nuclear weapons stockpile through a 
        program of stockpile stewardship, carried out at the 
        nuclear weapons laboratories and nuclear weapons 
        production plants.
            (3) Sense of Congress.--It is the sense of Congress 
        that--
                    (A) the United States should retain a triad 
                of strategic nuclear forces sufficient to deter 
                any future hostile foreign leadership with 
                access to strategic nuclear forces from acting 
                against the vital interests of the United 
                States;
                    (B) the United States should continue to 
                maintain nuclear forces of sufficient size and 
                capability to implement an effective and robust 
                deterrent strategy; and
                    (C) the advice of the persons required to 
                provide the President and Congress with 
                assurances of the safety, security, 
                effectiveness, and reliability of the nuclear 
                weapons force should be scientifically based, 
                without regard for politics, and of the highest 
                quality and integrity.
    (c) Addition of President to Recipients of Reports by Heads 
of Laboratories and Plants.--Section 3159(b) of the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201; 42 U.S.C. 7274o) is amended--
            (1) by striking out ``committees and'' and 
        inserting in lieu thereof ``committees,''; and
            (2) by inserting before the period at the end the 
        following: ``, and to the President''.
    (d) Ten-Day Time Limit for Transmittal of Report.--Section 
3159(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 42 U.S.C. 7274o) is amended by 
striking out ``As soon as practicable'' and inserting in lieu 
thereof ``Not later than 10 days''.
    (e) Advice and Opinions Regarding Nuclear Weapons 
Stockpile.--In addition to a director of a nuclear weapons 
laboratory or a nuclear weapons production plant (under section 
3159 of the National Defense Authorization Act for Fiscal Year 
1997 (Public Law 104-201; 42 U.S.C. 7274o)), any member of the 
Joint Nuclear Weapons Council or the commander of the United 
States Strategic Command may also submit to the President, the 
Secretary of Defense, the Secretary of Energy, or the 
congressional defense committees advice or opinion regarding 
the safety, security, effectiveness, and reliability of the 
nuclear weapons stockpile.
    (f) Expression of Individual Views.--A representative of 
the President may not take any action against, or otherwise 
constrain, a director of a nuclear weapons laboratory or a 
nuclear weapons production plant, a member of the Joint Nuclear 
Weapons Council, or the Commander of United States Strategic 
Command for presenting individual views to the President, the 
National Security Council, or Congress regarding the safety, 
security, effectiveness, and reliability of the nuclear weapons 
stockpile.
    (g) Definitions.--In this section:
            (1) The term ``representative of the President'' 
        means the following:
                    (A) Any official of the Department of 
                Defense or the Department of Energy who is 
                appointed by the President and confirmed by the 
                Senate.
                    (B) Any member of the National Security 
                Council.
                    (C) Any member of the Joint Chiefs of 
                Staff.
                    (D) Any official of the Office of 
                Management and Budget.
            (2) The term ``nuclear weapons laboratory'' means 
        any of the following:
                    (A) Lawrence Livermore National Laboratory, 
                California.
                    (B) Los Alamos National Laboratory, New 
                Mexico.
                    (C) Sandia National Laboratories.
            (3) The term ``nuclear weapons production plant'' 
        means any of the following:
                    (A) The Pantex Plant, Texas.
                    (B) The Savannah River Site, South 
                Carolina.
                    (C) The Kansas City Plant, Missouri.
                    (D) The Y-12 Plant, Oak Ridge, Tennessee.

SEC. 1306. RECONSTITUTION OF COMMISSION TO ASSESS THE BALLISTIC MISSILE 
                    THREAT TO THE UNITED STATES.

    (a) Initial Organization Requirements.--Section 1321(g) of 
the National Defense Authorization Act for Fiscal Year 1997 
(Public Law 104-201; 110 Stat. 2712) is amended--
            (1) in paragraph (1), by striking out ``not later 
        than 45 days after the date of the enactment of this 
        Act'' and inserting in lieu thereof ``not later than 30 
        days after the date of the enactment of the National 
        Defense Authorization Act for Fiscal Year 1998''; and
            (2) in paragraph (2)--
                    (A) by striking out ``30 days'' and 
                inserting in lieu thereof ``60 days''; and
                    (B) by striking out ``, but not earlier 
                than October 15, 1996''.
    (b) Funding.--Section 1328 of such Act (110 Stat. 2714) is 
amended by inserting ``and fiscal year 1998'' after ``for 
fiscal year 1997''.

SEC. 1307. SENSE OF CONGRESS REGARDING THE RELATIONSHIP BETWEEN UNITED 
                    STATES OBLIGATIONS UNDER THE CHEMICAL WEAPONS 
                    CONVENTION AND ENVIRONMENTAL LAWS.

    (a) Findings.--Congress makes the following findings:
            (1) The Chemical Weapons Convention requires the 
        destruction of the United States stockpile of lethal 
        chemical agents and munitions by April 29, 2007 (not 
        later than 10 years after the Convention's entry into 
        force).
            (2) The President has substantial authority under 
        existing law to ensure that--
                    (A) the technologies necessary to destroy 
                the stockpile are developed;
                    (B) the facilities necessary to destroy the 
                stockpile are constructed; and
                    (C) Federal, State, and local environmental 
                laws and regulations do not impair the ability 
                of the United States to comply with its 
                obligations under the Convention.
            (3) The Comptroller General has concluded (in GAO 
        Report NSIAD 97018 of February 1997) that--
                    (A) obtaining the necessary Federal and 
                State permits that are required under Federal 
                environmental laws and regulations for building 
                and operating the chemical agents and munitions 
                destruction facilities is among the most 
                unpredictable factors in the chemical 
                demilitarization program; and
                    (B) program cost and schedule are largely 
                driven by the degree to which States and local 
                communities are in agreement with proposed 
                disposal methods and whether those methods meet 
                environmental concerns.
    (b) Sense of Congress.--It is the sense of Congress that 
the President--
            (1) should use the authority of the President under 
        existing law to ensure that the United States is able 
        to construct and operate the facilities necessary to 
        destroy the United States stockpile of lethal chemical 
        agents and munitionswithin the time allowed by the 
Chemical Weapons Convention; and
            (2) while carrying out the obligations of the 
        United States under the Convention, should encourage 
        negotiations between appropriate Federal officials and 
        officials of the State and local governments concerned 
        to attempt to meet their concerns regarding compliance 
        with Federal and State environmental laws and 
        regulations and other concerns about the actions being 
        taken to carry out those obligations.
    (c) Chemical Weapons Convention Defined.--For the purposes 
of this section, the terms ``Chemical Weapons Convention'' and 
``Convention'' mean the Convention on the Prohibition of the 
Development, Production, Stockpiling and Use of Chemical 
Weapons and on Their Destruction, ratified by the United States 
on April 25, 1997, and entered into force on April 29, 1997.

SEC. 1308. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR SUPPORT OF 
                    UNITED NATIONS SPECIAL COMMISSION ON IRAQ.

    Section 1505 of the Weapons of Mass Destruction Control Act 
of 1992 (title XV of Public Law 102-484; 22 U.S.C. 5859a) is 
amended--
            (1) in subsection (d)(3), by striking out ``or'' 
        after ``fiscal year 1996,'' and by inserting ``, or 
        $15,000,000 for fiscal year 1998'' before the period at 
        the end; and
            (2) in subsection (f), by striking out ``1997'' and 
        inserting in lieu thereof ``1998''.

SEC. 1309. ANNUAL REPORT ON MORATORIUM ON USE BY ARMED FORCES OF 
                    ANTIPERSONNEL LANDMINES.

    (a) Findings.--Congress makes the following findings:
            (1) The United States has stated its support for a 
        ban on antipersonnel landmines that is global in scope 
        and verifiable.
            (2) On May 16, 1996, the President announced that 
        the United States, as a matter of policy, would 
        eliminate its stockpile of non-self-destructing 
        antipersonnel landmines, except those used for training 
        purposes and in Korea, and that the United States would 
        reserve the right to use self-destructing antipersonnel 
        landmines in the event of conflict.
            (3) On May 16, 1996, the President also announced 
        that the United States would lead an effort to 
        negotiate an international treaty permanently banning 
        the use of all antipersonnel landmines.
            (4) The United States is currently participating at 
        the United Nations Conference on Disarmament in 
        negotiations aimed at achieving a global ban on the use 
        of antipersonnel landmines.
            (5) On August 18, 1997, the administration agreed 
        to participate in international negotiations sponsored 
        by Canada (the so-called ``Ottawa process'') designed 
        to achieve a treaty that would outlaw the production, 
        use, and sale of antipersonnel landmines.
            (6) On September 17, 1997, the President announced 
        that the United States would not sign the antipersonnel 
        landmine treaty concluded in Oslo, Norway, by 
        participants in the Ottawa process because the treaty 
        would not provide a geographic exception to allow the 
        United States to stockpile and use antipersonnel 
        landmines in Korea or an exemption that would preserve 
        the ability of the United States to use mixed antitank 
        mine systems which could be used to deter an armored 
        assault against United States forces.
            (7) The President also announced a change in United 
        States policy whereby the United States--
                    (A) would no longer deploy antipersonnel 
                landmines, including self-destructing 
                antipersonnel landmines, by 2003, except in 
                Korea;
                    (B) would seek to field alternatives by 
                that date, or by 2006 in the case of Korea;
                    (C) would undertake a new initiative in the 
                United Nations Conference on Disarmament to 
                establish aglobal ban on the transfer of 
antipersonnel landmines; and
                    (D) would increase its current humanitarian 
                demining activities around the world.
            (8) The President's decision would allow the 
        continued use by United States forces of self-
        destructing antipersonnel landmines that are used as 
        part of a mixed antitank mine system.
            (9) Under existing law (as provided in section 580 
        of Public Law 104-107; 110 Sat 751), on February 12, 
        1999, the United States will implement a one-year 
        moratorium on the use of antipersonnel landmines by 
        United States forces except along internationally 
        recognized national borders or in demilitarized zones 
        within a perimeter marked area that is monitored by 
        military personnel and protected by adequate means to 
        ensure the exclusion of civilians.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the United States should not implement a 
        moratorium on the use of antipersonnel landmines by 
        United States Armed Forces in a manner that would 
        endanger United States personnel or undermine the 
        military effectiveness of United States Armed Forces in 
        executing their missions; and
            (2) the United States should pursue the development 
        of alternatives to self-destructing antipersonnel 
        landmines.
    (c) Annual Report.--Not later than December 31 each year, 
the Secretary of Defense shall submit to the congressional 
defense committees a report concerning antipersonnel landmines. 
Each such report shall include the Secretary's description of 
the following:
            (1) The military utility of the continued 
        deployment and use by the United States of 
        antipersonnel landmines.
            (2) The effect of a moratorium on the production, 
        stockpiling, and use of antipersonnel landmines on the 
        ability of United States forces to deter and defend 
        against attack on land by hostile forces, including on 
        the Korean peninsula.
            (3) Progress in developing and fielding systems 
        that are effective substitutes for antipersonnel 
        landmines, including an identification and description 
        of the types of systems that are being developed and 
        fielded, the costs associated with those systems, and 
        the estimated timetable for developing and fielding 
        those systems.
            (4) The effect of a moratorium on the use of 
        antipersonnel landmines on the military effectiveness 
        of current antitank mine systems.
            (5) The number and type of pure antipersonnel 
        landmines that remain in the United States inventory 
        and that are subject to elimination under the 
        President's September 17, 1997, declaration on United 
        States antipersonnel landmine policy.
            (6) The number and type of mixed antitank mine 
        systems that are in the United States inventory, the 
        locations where they are deployed, and their effect on 
        the deterrence and warfighting ability of United States 
        Armed Forces.
            (7) The effect of the elimination of pure 
        antipersonnel landmines on the warfighting 
        effectiveness of the United States Armed Forces.
            (8) The costs already incurred and anticipated of 
        eliminating antipersonnel landmines from the United 
        States inventory in accordance with the policy 
        enunciated by the President on September 17, 1997.
            (9) The benefits that would result to United States 
        military and civilian personnel from an international 
        treaty banning the production, use, transfer, and 
        stockpiling of antipersonnel landmines.

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

Sec. 1401. Specification of Cooperative Threat Reduction programs and 
          funds.
Sec. 1402. Funding allocations.
Sec. 1403. Prohibition on use of funds for specified purposes.
Sec. 1404. Limitation on use of funds for projects related to START II 
          Treaty until submission of certification.
Sec. 1405. Limitation on use of funds for chemical weapons destruction 
          facility.
Sec. 1406. Limitation on use of funds for destruction of chemical 
          weapons.
Sec. 1407. Limitation on use of funds for storage facility for Russian 
          fissile material.
Sec. 1408. Limitation on use of funds for weapons storage security.
Sec. 1409. Report on issues regarding payment of taxes, duties, and 
          other assessments on assistance provided to Russia under 
          Cooperative Threat Reduction programs.
Sec. 1410. Availability of funds.

SEC. 1401. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
                    FUNDS.

    (a) Specification of CTR Programs.--For purposes of section 
301 and other provisions of this Act, Cooperative Threat 
Reduction programs are the programs specified in section 
1501(b) of the National Defense Authorization Act for fiscal 
year 1997 (Public Law 104-201: 110 Stat. 2731; 50 U.S.C. 2362 
note).
    (b) Fiscal Year 1998 Cooperative Threat Reduction Funds 
Defined.--As used in this title, the term ``fiscal year 1998 
Cooperative Threat Reduction funds'' means the funds 
appropriated pursuant to the authorization of appropriations in 
section 301 for Cooperative Threat Reduction programs.

SEC. 1402. FUNDING ALLOCATIONS.

    (a) In General.--Of the fiscal year 1998 Cooperative Threat 
Reduction funds, not more than the following amounts may be 
obligated for the purposes specified:
            (1) For strategic offensive arms elimination in 
        Russia, $77,900,000.
            (2) For strategic nuclear arms elimination in 
        Ukraine, $76,700,000.
            (3) For fissile material containers in Russia, 
        $7,000,000.
            (4) For planning and design of a chemical weapons 
        destruction facility in Russia, $35,400,000.
            (5) For dismantlement of biological and chemical 
        weapons facilities in the former Soviet Union, 
        $20,000,000.
            (6) For planning, design, and construction of a 
        storage facility for Russian fissile material, 
        $57,700,000.
            (7) For weapons storage security in Russia, 
        $36,000,000.
            (8) For development of a cooperative program with 
        the Government of Russia to eliminate the production of 
        weapons grade plutonium at Russian reactors, 
        $41,000,000.
            (9) For activities designated as Defense and 
        Military-to-Military Contacts in Russia, Ukraine, and 
        Kazakhstan, $8,000,000.
            (10) For military-to-military programs of the 
        United States that focus on countering the threat of 
        proliferation of weapons of mass destruction and that 
        include the security forces of the independent states 
        of the former Soviet Union other than Russia, Ukraine, 
        Belarus, and Kazakstan, $2,000,000.
            (11) For activities designated as Other 
        Assessments/Administrative Support $20,500,000.
    (b) Limited Authority To Vary Individual Amounts.--(1) If 
the Secretary of Defense determines that it is necessary to do 
so in the national interest, the Secretary may, subject to 
paragraphs (2) and (3), obligate amounts for the purposes 
stated in any of the paragraphs of subsection (a) in excess of 
the amount specified for those purposes in that paragraph. 
However, the total amount obligated for the purposes stated in 
the paragraphs in subsection (a) may not by reason of the use 
of the authority provided in the preceding sentence exceed the 
sum of the amounts specified in those paragraphs.
    (2) An obligation for the purposes stated in any of the 
paragraphs in subsection (a) in excess of the amount 
specifiedin that paragraph may be made using the authority provided in 
paragraph (1) only after--
            (A) the Secretary submits to Congress notification 
        of the intent to do so together with a complete 
        discussion of the justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.
    (3) The Secretary may not, under the authority provided in 
paragraph (1), obligate amounts appropriated for the purposes 
stated in any of paragraphs (3) through (11) of subsection (a) 
in excess of 115 percent of the amount stated in those 
paragraphs.
    (c) Limited Waiver of 115 Percent Cap on Obligation in 
Excess of Amounts Authorized for Fiscal Years 1996 and 1997.--
(1) The limitation in subsection (b)(1) of section 1202 of the 
National Defense Authorization Act For Fiscal Year 1996 (Public 
Law 104-106; 110 Stat. 469), that provides that the authority 
provided in that sentence to obligate amounts specified for 
Cooperative Threat Reduction purposes in excess of the amount 
specified for each such purpose in subsection (a) of that 
section may not exceed 115 percent of the amounts specified, 
shall not apply with respect to subsection (a)(1) of such 
section for purposes of strategic offensive weapons elimination 
in Russia or the Ukraine.
    (2) The limitation in subsection (b)(1) of section 1502 of 
the National Defense Authorization Act For Fiscal Year 1997 
(Public Law 104-201; 110 Stat. 2732), that provides that the 
authority provided in that sentence to obligate amounts 
specified for Cooperative Threat Reduction purposes in excess 
of the amount specified for each such purpose in subsection (a) 
of that section may not exceed 115 percent of the amounts 
specified, shall not apply with respect to subsections (a)(2) 
and (a)(3) of such section.

SEC. 1403. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

    (a) In General.--No fiscal year 1998 Cooperative Threat 
Reduction funds, and no funds appropriated for Cooperative 
Threat Reduction programs for any prior fiscal year and 
remaining available for obligation, may be obligated or 
expended for any of the following purposes:
            (1) Conducting with Russia any peacekeeping 
        exercise or other peacekeeping-related activity.
            (2) Provision of housing.
            (3) Provision of assistance to promote 
        environmental restoration.
            (4) Provision of assistance to promote job 
        retraining.
    (b) Limitation With Respect to Defense Conversion 
Assistance.--None of the funds appropriated pursuant to this 
Act may be obligated or expended for the provision of 
assistance to Russia or any other state of the former Soviet 
Union to promote defense conversion.

SEC. 1404. LIMITATION ON USE OF FUNDS FOR PROJECTS RELATED TO START II 
                    TREATY UNTIL SUBMISSION OF CERTIFICATION.

    No fiscal year 1998 Cooperative Threat Reduction funds may 
be obligated or expended for strategic offensive arms 
elimination projects in Russia related to the START II Treaty 
(as defined in section 1302(f)) until 30 days after the date on 
which the Secretary of Defense submits to Congress a 
certification in writing that--
            (1) implementation of the projects would benefit 
        the national security interest of the United States; 
        and
            (2) Russia has agreed in an implementing agreement 
        to share the cost for the projects.

SEC. 1405. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION 
                    FACILITY.

    (a) Limitation on Use of Funds Until Submission of 
Notifications to Congress.--No fiscal year 1998 Cooperative 
Threat Reduction funds may be obligated or expended for 
planning and design of a chemical weapons destruction facility 
until 15 days after the date that is the later of the 
following:
            (1) The date on which the Secretary of Defense 
        submits to Congress notification of an agreement 
        between the United States and Russia with respect to 
        such chemical weapons destruction facility that 
        includes--
                    (A) an agreement providing for a limitation 
                on the financial contribution by the United 
                States for the facility;
                    (B) an agreement that the United States 
                will not pay the costs for infrastructure 
                determined by Russia to be necessary to support 
                the facility; and
                    (C) an agreement on the location of the 
                facility.
            (2) The date on which the Secretary of Defense 
        submits to Congress notification that the Government of 
        Russia has formally approved a plan--
                    (A) that allows for the destruction of 
                chemical weapons in Russia; and
                    (B) that commits Russia to pay a portion of 
                the cost for the facility.
    (b) Prohibition on Use of Funds for Facility 
Construction.--No fiscal year 1998 Cooperative Threat Reduction 
funds authorized to be obligated in section 1402(a)(4) for 
planning and design of a chemical weapons destruction facility 
in Russia may be used for construction of such facility.

SEC. 1406. LIMITATION ON USE OF FUNDS FOR DESTRUCTION OF CHEMICAL 
                    WEAPONS.

    (a) Limitation.--No funds authorized to be appropriated 
under this or any other Act for fiscal year 1998 for 
Cooperative Threat Reduction programs may be obligated or 
expended for chemical weapons destruction activities (including 
activities for the planning, design, or construction of a 
chemical weapons destruction facility or for the dismantlement 
of an existing chemical weapons production facility) until the 
President submits to Congress a written certification under 
subsection (b).
    (b) Presidential Certification.--A certification under this 
subsection is either of the following certifications by the 
President:
            (1) A certification that--
                    (A) Russia is making reasonable progress 
                toward the implementation of the Bilateral 
                Destruction Agreement;
                    (B) the United States and Russia have made 
                substantial progress toward the resolution, to 
                the satisfaction of the United States, of 
                outstanding compliance issues under the Wyoming 
                Memorandum of Understanding and the Bilateral 
                Destruction Agreement; and
                    (C) Russia has fully and accurately 
                declared all information regarding its unitary 
                and binary chemical weapons, chemical weapons 
                facilities, and other facilities associated 
                with chemical weapons.
            (2) A certification that the national security 
        interests of the United States could be undermined by a 
        United States policy not to carry out chemical weapons 
        destruction activities under the Cooperative Threat 
        Reduction programs for which funds are authorized to be 
        appropriated under this or any other Act for fiscal 
        year 1998.
    (c) Definitions.--For the purposes of this section:
            (1) The term ``Bilateral Destruction Agreement'' 
        means the Agreement Between the United States of 
        America and the Union of Soviet Socialist Republics on 
        Destruction and Nonproduction of Chemical Weapons and 
        on Measures to Facilitate the Multilateral Convention 
        on Banning Chemical Weapons, signed on June 1, 1990.
            (2) The term ``Wyoming Memorandum of 
        Understanding'' means the Memorandum of Understanding 
        Between the Government of the United States of America 
        and the Government of the Union of Soviet Socialist 
        Republics Regarding a Bilateral Verification Experiment 
        and Data Exchange Related to Prohibition on Chemical 
        Weapons, signed at Jackson Hole, Wyoming, on September 
        23, 1989.

SEC. 1407. LIMITATION ON USE OF FUNDS FOR STORAGE FACILITY FOR RUSSIAN 
                    FISSILE MATERIAL.

    No fiscal year 1998 Cooperative Threat Reduction funds may 
be obligated or expended for planning, design, or construction 
of a storage facility for Russian fissile material until 15 
days after the date that is the later of the following:
            (1) The date on which the Secretary of Defense 
        submits to Congress notification that an implementing 
        agreement between the United States and Russia has been 
        entered into that specifies the total cost to the 
        United States for the facility.
            (2) The date on which the Secretary submits to 
        Congress notification that an agreement has been 
        entered into between the United States and Russia 
        incorporating the principle of transparency with 
        respect to the use of the facility.

SEC. 1408. LIMITATION ON USE OF FUNDS FOR WEAPONS STORAGE SECURITY.

    No fiscal year 1998 Cooperative Threat Reduction funds 
intended for weapons storage security activities in Russia may 
be obligated or expended until--
            (1) the Secretary of Defense submits to Congress a 
        report on the status of negotiations between the United 
        States and Russia on audits and examinations with 
        respect to weapons storage security; and
            (2) 15 days have elapsed following the date that 
        the report is submitted.

SEC. 1409. REPORT ON ISSUES REGARDING PAYMENT OF TAXES, DUTIES, AND 
                    OTHER ASSESSMENTS ON ASSISTANCE PROVIDED TO RUSSIA 
                    UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.

    Not later than 90 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report on issues regarding payment of taxes, duties, and other 
assessments on assistance provided to Russia under Cooperative 
Threat Reduction programs. The report shall include the 
following:
            (1) A description of any disputes between the 
        United States and Russia with respect to payment by the 
        United States of taxes, duties and other assessments on 
        assistance provided to Russia under a Cooperative 
        Threat Reductionprogram, including a description of the 
nature of each dispute, the amount of payment disputed, whether the 
dispute was resolved, and if the dispute was resolved, the means by 
which the dispute was resolved.
            (2) A description of the actions taken by the 
        Secretary to prevent disputes in the future between the 
        United States and Russia with respect to payment by the 
        United States of taxes, duties, and other assessments 
        on assistance provided to Russia under a Cooperative 
        Threat Reduction program.
            (3) A description of any agreement between the 
        United States and Russia with respect to payment by the 
        United States of taxes, duties, or other assessments on 
        assistance provided to Russia under a Cooperative 
        Threat Reduction program.
            (4) Any proposals of the Secretary for actions that 
        should be taken to prevent disputes between the United 
        States and Russia with respect to payment by the United 
        States of taxes, duties, or other assessments on 
        assistance provided to Russia under a Cooperative 
        Threat Reduction program.

SEC. 1410. AVAILABILITY OF FUNDS.

    Funds appropriated pursuant to the authorization of 
appropriations in section 301 for Cooperative Threat Reduction 
programs shall be available for obligation for three fiscal 
years.

   TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION

Sec. 1501. Recognition and grant of Federal charter.
Sec. 1502. Powers.
Sec. 1503. Purposes.
Sec. 1504. Service of process.
Sec. 1505. Membership.
Sec. 1506. Board of directors.
Sec. 1507. Officers.
Sec. 1508. Restrictions.
Sec. 1509. Liability.
Sec. 1510. Maintenance and inspection of books and records.
Sec. 1511. Audit of financial transactions.
Sec. 1512. Annual report.
Sec. 1513. Reservation of right to alter, amend, or repeal charter.
Sec. 1514. Tax-exempt status required as condition of charter.
Sec. 1515. Termination.
Sec. 1516. Definition of State.

SEC. 1501. RECOGNITION AND GRANT OF FEDERAL CHARTER.

    The Air Force Sergeants Association, a nonprofit 
corporation organized under the laws of the District of 
Columbia, is recognized as such and granted a Federal charter.

SEC. 1502. POWERS.

    The Air Force Sergeants Association (in this title referred 
to as the ``association'') shall have only those powers granted 
to it through its bylaws and articles of incorporation filed in 
the District of Columbia and subject to the laws of the 
District of Columbia.

SEC. 1503. PURPOSES.

    The purposes of the association are those provided in its 
bylaws and articles of incorporation and shall include the 
following:
            (1) To help maintain a highly dedicated and 
        professional corps of enlisted personnel within the 
        United States Air Force, including the United States 
        Air Force Reserve, and the Air National Guard.
            (2) To support fair and equitable legislation and 
        Department of the Air Force policies and to influence 
        by lawful means departmental plans, programs, policies, 
        and legislative proposals that affect enlisted 
        personnel of the Regular Air Force, the Air Force 
        Reserve, and the Air National Guard, its retirees, and 
        other veterans of enlisted service in the Air Force.
            (3) To actively publicize the roles of enlisted 
        personnel in the United States Air Force.
            (4) To participate in civil and military 
        activities, youth programs, and fundraising campaigns 
        that benefit the United States Air Force.
            (5) To provide for the mutual welfare of members of 
        the association and their families.
            (6) To assist in recruiting for the United States 
        Air Force.
            (7) To assemble together for social activities.
            (8) To maintain an adequate Air Force for our 
        beloved country.
            (9) To foster among the members of the association 
        a devotion to fellow airmen.
            (10) To serve the United States and the United 
        States Air Force loyally, and to do all else necessary 
        to uphold and defend the Constitution of the United 
        States.

SEC. 1504. SERVICE OF PROCESS.

    With respect to service of process, the association shall 
comply with the laws of the District of Columbia and those 
States in which it carries on its activities in furtherance of 
its corporate purposes.

SEC. 1505. MEMBERSHIP.

    Except as provided in section 1508(g), eligibility for 
membership in the association and the rights and privileges of 
members shall be as provided in the bylaws and articles of 
incorporation of the association.

SEC. 1506. BOARD OF DIRECTORS.

    Except as provided in section 1508(g), the composition of 
the board of directors of the association and the 
responsibilities of the board shall be as provided in the 
bylaws and articles of incorporation of the association and in 
conformity with the laws of the District of Columbia.

SEC. 1507. OFFICERS.

    Except as provided in section 1508(g), the positions of 
officers of the association and the election of members to such 
positions shall be as provided in the bylaws and articles of 
incorporation of the association and in conformity with the 
laws of the District of Columbia.

SEC. 1508. RESTRICTIONS.

    (a) Income and Compensation.--No part of the income or 
assets of the association may inure to the benefit of any 
member, officer, or director of the association or be 
distributed to any such individual during the life of this 
charter. Nothing in this subsection may be construed to prevent 
the payment of reasonable compensation to the officers and 
employees of the association or reimbursement for actual and 
necessary expenses in amounts approved by the board of 
directors.
    (b) Loans.--The association may not make any loan to any 
member, officer, director, or employee of the association.
    (c) Issuance of Stock and Payment of Dividends.--The 
association may not issue any shares of stock or declare or pay 
any dividends.
    (d) Disclaimer of Congressional or Federal Approval.--The 
association may not claim the approval of the Congress or the 
authorization of the Federal Government for any of its 
activities by virtue of this title.
    (e) Corporate Status.--The association shall maintain its 
status as a corporation organized and incorporated under the 
laws of the District of Columbia.
    (f) Corporate Function.--The association shall function as 
an educational, patriotic, civic, historical, and research 
organization under the laws of the District of Columbia.
    (g) Nondiscrimination.--In establishing the conditions of 
membership in the association and in determining the 
requirements for serving on the board of directors or as an 
officer of the association, the association may not 
discriminate on the basis of race, color, religion, sex, 
handicap, age, or national origin.

SEC. 1509. LIABILITY.

    The association shall be liable for the acts of its 
officers, directors, employees, and agents whenever such 
individuals act within the scope of their authority.

SEC. 1510. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.

    (a) Books and Records of Account.--The association shall 
keep correct and complete books and records of account and 
minutes of any proceeding of the association involving any of 
its members, the board of directors, or any committee having 
authority under the board of directors.
    (b) Names and Addresses of Members.--The association shall 
keep at its principal office a record of the names and 
addresses of all members having the right to vote in any 
proceeding of the association.
    (c) Right to Inspect Books and Records.--All books and 
records of the association may be inspected by any member 
having the right to vote in any proceeding of the association, 
or by any agent or attorney of such member, for any proper 
purpose at any reasonable time.
    (d) Application of State Law.--This section may not be 
construed to contravene any applicable State law.

SEC. 1511. AUDIT OF FINANCIAL TRANSACTIONS.

    The first section of the Act entitled ``An Act to provide 
for audit of accounts of private corporations established under 
Federal law'', approved August 30, 1964 (36 U.S.C. 1101), is 
amended--
            (1) by redesignating the paragraph (77) added by 
        section 1811 of Public Law 104-201 (110 Stat. 2762) as 
        paragraph (78); and
            (2) by adding at the end the following:
            ``(79) Air Force Sergeants Association.''.

SEC. 1512. ANNUAL REPORT.

    The association shall annually submit to Congress a report 
concerning the activities of the association during the 
preceding fiscal year. The annual report shall be submitted on 
the same date as the report of the audit required by reason of 
the amendment made in section 1511. The annual report shall not 
be printed as a public document.

SEC. 1513. RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL CHARTER.

    The right to alter, amend, or repeal this title is 
expressly reserved to Congress.

SEC. 1514. TAX-EXEMPT STATUS REQUIRED AS CONDITION OF CHARTER.

    If the association fails to maintain its status as an 
organization exempt from taxation as provided in the Internal 
Revenue Code of 1986 the charter granted in this title shall 
terminate.

SEC. 1515. TERMINATION.

    The charter granted in this title shall expire if the 
association fails to comply with any of the provisions of this 
title.

SEC. 1516. DEFINITION OF STATE.

    For purposes of this title, the term ``State'' includes the 
District of Columbia, the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands, and the 
territories and possessions of the United States.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 1998''.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Correction in authorized uses of funds, Fort Irwin, 
          California.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(1), the Secretary of the Army may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:


                     Army: Inside the United States                     
------------------------------------------------------------------------
                                     Installation or                    
             State                       Location             Amount    
------------------------------------------------------------------------
Alabama........................  Redstone Arsenal.......     $27,000,000
Arizona........................  Fort Huachuca..........     $20,000,000
California.....................  Fort Irwin.............     $11,150,000
                                 Naval Weapons Station,      $23,000,000
                                  Concord.                              
Colorado.......................  Fort Carson............     $47,300,000
Georgia........................  Fort Gordon............     $22,000,000
                                 Hunter Army Air Field,                 
                                  Fort Stewart..........     $54,000,000
Hawaii.........................  Schofield Barracks.....     $44,000,000
Indiana........................  Crane Army Ammunition        $7,700,000
                                  Activity.                             
Kansas.........................  Fort Leavenworth.......     $63,000,000
                                 Fort Riley.............     $25,800,000
Kentucky.......................  Fort Campbell..........     $53,600,000
                                 Fort Knox..............      $7,200,000
Missouri.......................  Fort Leonard Wood......      $3,200,000
New Jersey.....................  Fort Monmouth..........      $2,050,000
New Mexico.....................  White Sands Missile          $6,900,000
                                  Range.                                
New York.......................  Fort Drum..............     $24,400,000
North Carolina.................  Fort Bragg.............     $17,700,000
Oklahoma.......................  Fort Sill..............     $25,000,000
South Carolina.................  Naval Weapons Station,       $7,700,000
                                  Charleston.                           
Texas..........................  Fort Bliss.............      $7,700,000
                                 Fort Hood..............     $27,200,000
                                 Fort Sam Houston.......     $16,000,000
Virginia.......................  Fort A.P. Hill.........      $5,400,000
                                 Fort Myer..............      $8,200,000
                                 Fort Story.............      $2,050,000
Washington.....................  Fort Lewis.............     $33,000,000
CONUS Classified...............  Classified Location....      $6,500,000
                                                         ---------------
                                   Total................    $598,750,000
------------------------------------------------------------------------

      
    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(2), the Secretary of the Army may acquire real property 
and carry out military construction projects for the locations 
outside the United States, and in the amounts, set forth in the 
following table:


                     Army: Outside the United States                    
------------------------------------------------------------------------
                                     Installation or                    
            Country                      Location             Amount    
------------------------------------------------------------------------
Germany........................  Ansbach................     $22,000,000
                                 Heidelberg.............      $8,800,000
                                 Mannheim...............      $6,200,000
                                 Military Support Group,                
                                  Kaiserslautern........      $6,000,000
Korea..........................  Camp Casey.............      $5,100,000
                                 Camp Castle............      $8,400,000
                                 Camp Humphreys.........     $32,000,000
                                 Camp Red Cloud.........     $23,600,000
                                 Camp Stanley...........      $7,000,000
Overseas Classified............  Overseas Classified....     $37,000,000
                                                         ---------------
                                   Total................    $156,100,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may construct 
or acquire family housing units (including land acquisition) at 
the installations, for the purposes, and in the amounts set 
forth in the following table:


                                              Army: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Purpose                 Amount    
----------------------------------------------------------------------------------------------------------------
Arizona...............................  Fort Huachuca............  55 Units.....................      $8,000,000
Hawaii................................  Schofield Barracks.......  132 Units....................     $26,600,000
Maryland..............................  Fort Meade...............  56 Units.....................      $7,900,000
New Jersey............................  Picatinny Arsenal........  35 Units.....................      $7,300,000
North Carolina........................  Fort Bragg...............  174 Units....................     $20,150,000
Texas.................................  Fort Bliss...............  91 Units.....................     $12,900,000
                                        Fort Hood................  130 Units....................     $18,800,000
                                                                                                 ---------------
                                                                     Total......................    $101,650,000
----------------------------------------------------------------------------------------------------------------

      
    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
family housing units in an amount not to exceed $9,550,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in sections 2104(a)(5)(A), the Secretary of the 
Army may improve existing military family housing units in an 
amount not to exceed $86,100,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1997, for military construction, land acquisition, and military 
family housing functions of the Department of the Army in the 
total amount of $2,010,466,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2101(a), 
        $435,350,000.
            (2) For the military construction projects outside 
        the United States authorized by section 2101(b), 
        $156,100,000.
            (3) For unspecified minor military construction 
        projects authorized by section 2805 of title 10, United 
        States Code, $7,400,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $65,577,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $197,300,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $1,145,339,000.
            (6) For the construction of the National Range 
        Control Center, White Sands Missile Range, New Mexico, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 1997 
        (division B of Public Law 104-201; 110 Stat. 2763), 
        $18,000,000.
            (7) For the construction of the whole barracks 
        complex renewal, Fort Knox, Kentucky, authorized by 
        section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 1997 (division B of 
        Public Law 104-201; 110 Stat. 2763), $22,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2101 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a);
            (2) $14,400,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of the Force XXI Soldier Development School at Fort 
        Hood, Texas);
            (3) $24,000,000 (the balance of the amount 
        authorized under section 2101(a) for rail yard 
        expansion at Fort Carson, Colorado);
            (4) $43,000,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of a disciplinary barracks at Fort Leavenworth, 
        Kansas);
            (5) $42,500,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of a barracks at Hunter Army Airfield, Fort Stewart, 
        Georgia);
            (6) $17,000,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of a barracks at Fort Sill, Oklahoma);
            (7) $14,000,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of a missile software engineering facility at Redstone 
        Arsenal, Alabama); and
            (8) $8,500,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of an aerial gunnery range at Fort Drum, New York).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (7) of 
subsection (a) is the sum of the amounts authorized in such 
paragraphs, reduced by $36,600,000, which represents the 
combination of savings resulting from adjustments to foreign 
currency exchange rates for military construction projects and 
the support of military family housing outside the United 
States.

SEC. 2105. CORRECTION IN AUTHORIZED USES OF FUNDS, FORT IRWIN, 
                    CALIFORNIA.

    The Secretary of the Army may carry out a military 
construction project at Fort Irwin, California, to construct a 
heliport for the National Training Center at Barstow-Daggett, 
California, using the following amounts:
            (1) Amounts appropriated pursuant to the 
        authorization of appropriations in section 2104(a)(1) 
        of the Military Construction Authorization Act for 
        Fiscal Year 1995 (division B of Public Law 103-337; 108 
        Stat. 3029) for a military construction project 
        involving the construction of an air field at Fort 
        Irwin, as authorized by section 2101(a) of such Act 
        (108 Stat. 3027).
            (2) Amounts appropriated pursuant to the 
        authorization of appropriations in section 2104(a)(1) 
        of the Military Construction Authorization Act for 
        Fiscal Year 1996 (division B of Public Law 104-106; 110 
        Stat. 524) for a military construction project 
        involving the construction of an air field at Fort 
        Irwin, as authorized by section 2101(a) of such Act 
        (110 Stat. 523).

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization of military construction project at Naval 
          Station, Pascagoula, Mississippi, for which funds have been 
          appropriated.
Sec. 2206. Increase in authorization for military construction projects 
          at Naval Station Roosevelt Roads, Puerto Rico.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(1), the Secretary of the Navy may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:


                     Navy: Inside the United States                     
------------------------------------------------------------------------
                                     Installation or                    
             State                       Location             Amount    
------------------------------------------------------------------------
Arizona........................  Marine Corps Air                       
                                  Station, Yuma.........     $12,250,000
                                 Navy Detachment, Camp                  
                                  Navajo................     $11,426,000
California.....................  Marine Corps Air                       
                                  Station, Camp                         
                                  Pendleton.............     $14,020,000
                                 Marine Corps Air                       
                                  Station, Miramar......      $8,700,000
                                 Marine Corps Air-Ground                
                                  Combat Center,                        
                                  Twentynine Palms......      $3,810,000
                                 Marine Corps Base, Camp                
                                  Pendleton.............     $60,069,000
                                 Naval Air Facility, El                 
                                  Centro................     $11,000,000
                                 Naval Air Station,                     
                                  North Island..........     $19,600,000
                                 Naval Amphibious Base,                 
                                  Coronado..............     $10,100,000
                                 Naval Construction                     
                                  Battalion Center, Port                
                                  Hueneme...............      $3,200,000
Connecticut....................  Naval Submarine Base,                  
                                  New London............     $21,960,000
Florida........................  Naval Air Station,                     
                                  Jacksonville..........      $3,480,000
                                 Naval Air Station,           $1,300,000
                                  Whiting Field.                        
                                 Naval Station, Mayport.     $17,940,000
Hawaii.........................  Fort DeRussey..........      $9,500,000
                                 Marine Corps Air                       
                                  Station, Kaneohe Bay..     $19,000,000
                                 Naval Communications                   
                                  and Telecommunications                
                                  Area Master Station                   
                                  Eastern Pacific,                      
                                  Honolulu..............      $3,900,000
                                 Naval Station, Pearl        $25,000,000
                                  Harbor.                               
Illinois.......................  Naval Training Center,                 
                                  Great Lakes...........     $41,220,000
Indiana........................  Naval Surface Warfare                  
                                  Center, Crane.........      $4,120,000
Maryland.......................  Naval Electronics                      
                                  System Command, St.                   
                                  Ingoes................      $2,610,000
Mississippi....................  Naval Air Station,                     
                                  Meridian..............      $7,050,000
North Carolina.................  Marine Corps Air                       
                                  Station, Cherry Point.      $8,800,000
                                 Marine Corps Air                       
                                  Station, New River....     $19,900,000
Rhode Island...................  Naval Undersea Warfare                 
                                  Center Division,                      
                                  Newport...............      $8,900,000
South Carolina.................  Marine Corps Air                       
                                  Station, Beaufort.....     $17,730,000
                                 Marine Corps Reserve                   
                                  Detachment Parris                     
                                  Island................      $3,200,000
Texas..........................  Naval Air Station,                     
                                  Corpus Christi........        $800,000
Virginia.......................  AEGIS Training Center,       $6,600,000
                                  Dahlgren.                             
                                 Fleet Combat Training                  
                                  Center, Dam Neck......      $7,000,000
                                 Naval Air Station,                     
                                  Norfolk...............     $18,240,000
                                 Naval Air Station,          $28,000,000
                                  Oceana.                               
                                 Naval Amphibious Base,                 
                                  Little Creek..........      $8,685,000
                                 Naval Shipyard,                        
                                  Norfolk, Portsmouth...     $29,410,000
                                 Naval Station, Norfolk.     $18,850,000
                                 Naval Surface Warfare                  
                                  Center, Dahlgren......     $13,880,000
                                 Naval Weapons Station,                 
                                  Yorktown..............     $14,547,000
Washington.....................  Naval Air Station,           $1,100,000
                                  Whidbey Island.                       
                                 Puget Sound Naval                      
                                  Shipyard, Bremerton...      $4,400,000
                                                         ---------------
                                   Total................    $521,297,000
------------------------------------------------------------------------

      
    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(2), the Secretary of the Navy may acquire real property 
and carry out military construction projects for the 
installations and locations outside the United States, and in 
the amounts, set forth in the following table:


                     Navy: Outside the United States                    
------------------------------------------------------------------------
                                     Installation or                    
            Country                      Location             Amount    
------------------------------------------------------------------------
Bahrain........................  Administrative Support                 
                                  Unit, Bahrain.........     $30,100,000
Guam...........................  Naval Communications                   
                                  and Telecommunications                
                                  Area Master Station                   
                                  Western Pacific, Guam.      $4,050,000
Italy..........................  Naval Air Station,          $21,440,000
                                  Sigonella.                            
                                 Naval Support Activity,      $8,200,000
                                  Naples.                               
United Kingdom.................  Joint Maritime                         
                                  Communications Center,                
                                  St. Mawgan............      $2,330,000
                                                         ---------------
                                   Total................     $66,120,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may construct 
or acquire family housing units (including land acquisition) at 
the installations, for the purposes, and in the amounts set 
forth in the following table:


                                              Navy: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Purpose                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Marine Corps Air Station,                                               
                                         Miramar.................  166 Units....................     $28,881,000
                                        Marine Corps Air-Ground                                                 
                                         Combat Center,                                                         
                                         Twentynine Palms........  132 Units....................     $23,891,000
                                        Marine Corps Base, Camp                                                 
                                         Pendleton...............  171 Units....................     $22,518,000
                                        Naval Air Station,                                                      
                                         Lemoore.................  128 Units....................     $23,226,000
                                        Naval Complex, San Diego.  94 Units.....................     $13,500,000
Hawaii................................  Naval Complex, Pearl                                                    
                                         Harbor..................  72 Units.....................     $13,000,000
Louisiana.............................  Naval Complex, New                                                      
                                         Orleans.................  100 Units....................     $11,930,000
Texas.................................  Naval Complex, Kingsville                                               
                                         and Corpus Christi......  212 Units....................     $22,250,000
Washington............................  Naval Air Station,                                                      
                                         Whidbey Island..........  102 Units....................     $16,000,000
                                                                                                 ---------------
                                                                     Total......................    $175,196,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriation in section 
2204(a)(5)(A), the Secretary of the Navy may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$15,100,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2204(a)(5)(A), the Secretary of the 
Navy may improve existing military family housing units in an 
amount not to exceed $203,536,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1997, for military construction, land acquisition, and military 
family housing functions of the Department of the Navy in the 
total amount of $2,027,339,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2201(a), 
        $521,297,000.
            (2) For military construction projects outside the 
        United States authorized by section 2201(b), 
        $66,120,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $11,460,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $46,489,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $393,832,000.
                    (B) For support of military housing 
                (including functions described in section 2833 
                of title 10, United States Code), $976,504,000.
            (6) For construction of a bachelor enlisted 
        quarters at Naval Hospital, Great Lakes, Illinois, 
        authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 1997 
        (division B of Public Law 104-201; 110 Stat. 2766), 
        $5,200,000.
            (7) For construction of a bachelor enlisted 
        quarters at Naval Station, Roosevelt Roads, Puerto 
        Rico, authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 1997 
        (division B of Public Law 104-201; 110 Stat. 2767), 
        $14,600,000.
            (8) For construction of a large anecohic chamber 
        facility at Patuxent River Naval Air Warfare Center, 
        Maryland, authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 1993 
        (division B of Public Law 102-484; 106 Stat. 2590), 
        $9,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2201 of this Act may not exceed the total amount 
authorized to be appropriated under paragraphs (1) and (2) of 
subsection (a).
    (c) Adjustments.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (8) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by--
            (1) $8,463,000, which represents the combination of 
        project savings in military family housing construction 
        resulting from favorable bids, reduced overhead costs, 
        and cancellations due to force structure changes; and
            (2) $8,700,000, which represents the combination of 
        savings resulting from adjustments to foreign currency 
        exchange rates for military construction projects and 
        the support of military family housing outside the 
        United States.

SEC. 2205. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT NAVAL 
                    STATION, PASCAGOULA, MISSISSIPPI, FOR WHICH FUNDS 
                    HAVE BEEN APPROPRIATED.

    (a) Authorization.--The table in section 2201(a) of the 
Military Construction Authorization Act for Fiscal Year 1997 
(division B of Public Law 104-201; 110 Stat. 2766) is amended--
            (1) by striking out the amount identified as the 
        total and inserting in lieu thereof ``$594,982,000''; 
        and
            (2) by inserting after the item relating to Stennis 
        Space Center, Mississippi, the following new item:


------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                 ``Naval Station,          $4,990,000''.
                                  Pascagoula.                           
------------------------------------------------------------------------

            
    (b) Conforming Amendments.--Section 2204(a) of such Act 
(110 Stat. 2769) is amended--
            (1) in the matter preceding the paragraphs, by 
        striking out ``$2,213,731,000'' and inserting in lieu 
        thereof ``$2,218,721,000''; and
            (2) in paragraph (1), by striking out 
        ``$579,312,000'' and inserting in lieu thereof 
        ``$584,302,000''.

SEC. 2206. INCREASE IN AUTHORIZATION FOR MILITARY CONSTRUCTION PROJECTS 
                    AT NAVAL STATION ROOSEVELT ROADS, PUERTO RICO.

    (a) Increase.--The table in section 2201(b) of the Military 
Construction Authorization Act for Fiscal Year 1997 (division B 
of Public Law 104-201; 110 Stat. 2767) is amended--
            (1) by striking out the amount identified as the 
        total and inserting in lieu thereof ``$66,150,000''; 
        and
            (2) in the amount column of the item relating to 
        Naval Station, Roosevelt Roads, Puerto Rico, by 
        striking out ``$23,600,000'' and inserting in lieu 
        thereof ``$24,100,000''.
    (b) Conforming Amendment.--Section 2204(b)(4) of such Act 
(110 Stat. 2770) is amended by striking out ``$14,100,000'' and 
inserting in lieu thereof ``$14,600,000''.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authorization of military construction project at McConnell 
          Air Force Base, Kansas, for which funds have been 
          appropriated.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
                    PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(1), the Secretary of the Air Force may acquire real 
property and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:

                   Air Force: Inside the United States                  
------------------------------------------------------------------------
                                     Installation or                    
             State                       Location             Amount    
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $14,874,000
Alaska.........................  Clear Air Station......     $67,069,000
                                 Eielson Air Force Base.     $13,764,000
                                 Elmendorf Air Force          $6,100,000
                                  Base.                                 
                                 Indian Mountain........      $1,991,000
Arizona........................  Luke Air Force Base....     $10,000,000
Arkansas.......................  Little Rock Air Force        $3,400,000
                                  Base.                                 
California.....................  Edwards Air Force Base.      $2,887,000
                                 Vandenberg Air Force        $26,876,000
                                  Base.                                 
Colorado.......................  Buckley Air National         $6,718,000
                                  Guard Base.                           
                                 Falcon Air Force            $10,551,000
                                  Station.                              
                                 Peterson Air Force Base      $4,081,000
                                 United States Air Force     $15,229,000
                                  Academy.                              
Florida........................  Eglin Auxiliary Field 9      $6,470,000
                                 MacDill Air Force Base.      $9,643,000
Georgia........................  Moody Air Force Base...      $6,800,000
                                 Robins Air Force Base..     $27,763,000
Idaho..........................  Mountain Home Air Force     $30,669,000
                                  Base.                                 
Kansas.........................  McConnell Air Force         $14,519,000
                                  Base.                                 
Louisiana......................  Barksdale Air Force         $19,410,000
                                  Base.                                 
Mississippi....................  Keesler Air Force Base.     $30,855,000
Missouri.......................  Whiteman Air Force Base     $17,419,000
Montana........................  Malmstrom Air Force          $4,500,000
                                  Base.                                 
Nevada.........................  Nellis Air Force Base..      $1,950,000
New Jersey.....................  McGuire Air Force Base.     $18,754,000
New Mexico.....................  Kirtland Air Force Base     $20,300,000
North Carolina.................  Pope Air Force Base....     $10,956,000
North Dakota...................  Grand Forks Air Force        $8,560,000
                                  Base.                                 
                                 Minot Air Force Base...      $5,200,000
Ohio...........................  Wright-Patterson Air        $19,350,000
                                  Force Base.                           
Oklahoma.......................  Altus Air Force Base...     $11,000,000
                                 Tinker Air Force Base..      $9,655,000
                                 Vance Air Force Base...      $7,700,000
South Carolina.................  Shaw Air Force Base....      $6,072,000
South Dakota...................  Ellsworth Air Force          $6,600,000
                                  Base.                                 
Tennessee......................  Arnold Air Force Base..     $20,650,000
Texas..........................  Dyess Air Force Base...     $10,000,000
                                 Laughlin Air Force Base      $4,800,000
                                 Randolph Air Force Base      $2,488,000
Utah...........................  Hill Air Force Base....      $6,470,000
Virginia.......................  Langley Air Force Base.      $4,031,000
Washington.....................  Fairchild Air Force         $20,316,000
                                  Base.                                 
                                 McChord Air Force Base.      $6,470,000
CONUS Classified...............  Classified Location....      $6,175,000
                                                         ---------------
                                   Total................    $559,085,000
------------------------------------------------------------------------

      
    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(2), the Secretary of the Air Force may acquire real 
property and carry out military construction projects for the 
installations and locations outside the United States, and in 
the amounts, set forth in the following table:

                  Air Force: Outside the United States                  
------------------------------------------------------------------------
                                     Installation or                    
            Country                      Location             Amount    
------------------------------------------------------------------------
Germany........................  Spangdahlem Air Base...     $18,500,000
Italy..........................  Aviano Air Base........     $15,220,000
Korea..........................  Kunsan Air Base........     $10,325,000
Portugal.......................  Lajes Field, Azores....      $4,800,000
United Kingdom.................  Royal Air Force,            $11,400,000
                                  Lakenheath.                           
Overseas Classified............  Classified Location....     $29,100,000
                                                         ---------------
                                   Total................     $89,345,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2304(a)(5)(A), the Secretary of the Air Force may 
construct or acquire family housing units (including land 
acquisition) at the installations, for the purposes, and in the 
amounts set forth in the following table:

                                            Air Force: Family Housing                                           
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Purpose                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Edwards Air Force Base...  51 Units.....................      $8,500,000
                                        Travis Air Force Base....  70 Units.....................      $9,714,000
                                        Vandenberg Air Force Base  108 Units....................     $17,100,000
Delaware..............................  Dover Air Force Base.....  Ancillary Facility...........        $831,000
District of Columbia..................  Bolling Air Force Base...  46 Units.....................      $5,100,000
Florida...............................  MacDill Air Force Base...  58 Units.....................     $10,000,000
                                        Tyndall Air Force Base...  32 Units.....................      $4,200,000
Georgia...............................  Robins Air Force Base....  60 Units.....................      $6,800,000
Idaho.................................  Mountain Home Air Force                                                 
                                         Base....................  60 Units.....................     $11,032,000
Kansas................................  McConnell Air Force Base.  19 Units.....................      $2,951,000
                                        McConnell Air Force Base.  Ancillary Facility...........        $581,000
Mississippi...........................  Columbus Air Force Base..  50 Units.....................      $6,200,000
                                        Keesler Air Force Base...  40 Units.....................      $5,000,000
Montana...............................  Malmstrom Air Force Base.  100 Units....................     $17,842,000
New Mexico............................  Kirtland Air Force Base..  180 Units....................     $20,900,000
North Dakota..........................  Grand Forks Air Force                                                   
                                         Base....................  42 Units.....................      $7,936,000
Texas.................................  Dyess Air Force Base.....  70 Units.....................     $10,503,000
                                        Goodfellow Air Force Base  3 Units......................        $500,000
                                        Lackland Air Force Base..  50 Units.....................      $7,400,000
Wyoming...............................  F. E. Warren Air Force                                                  
                                         Base....................  52 Units.....................      $6,853,000
                                                                                                 ---------------
                                                                     Total......................    $159,943,000
----------------------------------------------------------------------------------------------------------------

      
    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(5)(A), the Secretary of the Air Force may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$11,971,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2304(a)(5)(A), the Secretary of the 
Air Force may improve existing military family housing units in 
an amount not to exceed $123,795,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1997, for military construction, land acquisition, and military 
family housing functions of the Department of the Air Force in 
the total amount of $1,791,640,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2301(a), 
        $559,085,000.
            (2) For military construction projects outside the 
        United States authorized by section 2301(b), 
        $89,345,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $8,545,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $44,880,000.
            (5) For military housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $295,709,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $830,234,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2301 of this Act may not exceed the total amount 
authorized to be appropriated under paragraphs (1) and (2) of 
subsection (a).
    (c) Adjustments.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (5) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by--
            (1) $23,858,000, which represents the combination 
        of project savings in military construction resulting 
        from favorable bids, reduced overhead costs, and 
        cancellations due to force structure changes; and
            (2) $12,300,000, which represents the combination 
        of savings resulting from adjustments to foreign 
        currency exchange rates for military construction 
        projects and the support of military family housing 
        outside the United States.

SEC. 2305. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT MCCONNELL 
                    AIR FORCE BASE, KANSAS, FOR WHICH FUNDS HAVE BEEN 
                    APPROPRIATED.

    (a) Authorization.--The table in section 2301(a) of the 
Military Construction Authorization Act for Fiscal Year 1997 
(division B of Public Law 104-201; 110 Stat. 2771) is amended--
            (1) by striking out the amount identified as the 
        total and inserting in lieu thereof ``$610,534,000''; 
        and
            (2) in the amount column of the item relating to 
        McConnell Air Force Base, Kansas, by striking out 
        ``$19,130,000'' and inserting in lieu thereof 
        ``$25,830,000''.
    (b) Conforming Amendments.--Section 2304(a) of such Act 
(110 Stat. 2774) is amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``$1,894,594,000'' and inserting in lieu 
        thereof ``$1,901,294,000'' and
            (2) in paragraph (1), by striking out 
        ``$603,834,000'' and inserting in lieu thereof 
        ``$610,534,000''.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Clarification of authority relating to fiscal year 1997 
          project at Naval Station, Pearl Harbor, Hawaii.
Sec. 2407. Correction in authorized uses of funds, McClellan Air Force 
          Base, California.
Sec. 2408. Modification of authority to carry out certain fiscal year 
          1995 projects.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                    ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2405(a)(1), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:

               Defense Agencies: Inside the United States               
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      Location             Amount    
------------------------------------------------------------------------
Defense Commissary Agency......  Fort Lee, Virginia.....      $9,300,000
Defense Finance and Accounting                                          
 Service.......................  Columbus Center, Ohio..      $9,722,000
                                 Naval Air Station,                     
                                  Millington, Tennessee.      $6,906,000
                                 Naval Station, Norfolk,                
                                  Virginia..............     $12,800,000
                                 Naval Station, Pearl                   
                                  Harbor, Hawaii........     $10,000,000
Defense Intelligence Agency....  Bolling Air Force Base,                
                                  District of Columbia..      $7,000,000
                                 Redstone Arsenal,           $32,700,000
                                  Alabama.                              
Defense Logistics Agency.......  Defense Distribution                   
                                  Depot--DDNV, Virginia.     $16,656,000
                                 Defense Distribution                   
                                  New Cumberland--DDSP,                 
                                  Pennsylvania..........     $15,500,000
                                 Defense Fuel Support                   
                                  Point, Craney Island,                 
                                  Virginia..............     $22,100,000
                                 Defense General Supply                 
                                  Center, Richmond                      
                                  (DLA), Virginia.......      $5,200,000
                                 Elmendorf Air Force                    
                                  Base, Alaska..........     $21,700,000
                                 Naval Air Station,                     
                                  Jacksonville, Florida.      $9,800,000
                                 Truax Field, Wisconsin.      $4,500,000
                                 Westover Air Reserve                   
                                  Base, Massachusetts...      $4,700,000
                                 CONUS Various, CONUS                   
                                  Various...............     $11,275,000
Defense Medical Facilities                                              
 Office........................  Fort Campbell, Kentucky     $13,600,000
                                 Fort Detrick, Maryland.      $4,650,000
                                 Fort Lewis, Washington.      $5,000,000
                                 Hill Air Force Base,         $3,100,000
                                  Utah.                                 
                                 Holloman Air Force                     
                                  Base, New Mexico......      $3,000,000
                                 Lackland Air Force                     
                                  Base, Texas...........      $3,000,000
                                 Marine Corps Combat                    
                                  Development Command,                  
                                  Quantico, Virginia....     $19,000,000
                                 McGuire Air Force Base,                
                                  New Jersey............     $35,217,000
                                 Naval Air Station,                     
                                  Pensacola, Florida....      $2,750,000
                                 Naval Station, Everett,                
                                  Washington............      $7,500,000
                                 Naval Station, San                     
                                  Diego, California.....      $2,100,000
                                 Naval Submarine Base,                  
                                  New London,                           
                                  Connecticut...........      $2,300,000
                                 Robins Air Force Base,                 
                                  Georgia...............     $19,000,000
                                 Wright-Patterson Air                   
                                  Force Base, Ohio......      $2,750,000
National Security Agency.......  Fort Meade, Maryland...     $29,700,000
Special Operations Command.....  Eglin Auxiliary Field        $8,550,000
                                  9, Florida.                           
                                 Fort Benning, Georgia..     $12,314,000
                                 Fort Bragg, North            $9,800,000
                                  Carolina.                             
                                 Mississippi Army                       
                                  Ammunition Plant,                     
                                  Mississippi...........      $9,900,000
                                 Naval Station, Pearl                   
                                  Harbor, Hawaii........      $7,400,000
                                 Naval Amphibious Base,                 
                                  Coronado, California..      $7,400,000
                                                         ---------------
                                   Total................    $407,890,000
------------------------------------------------------------------------

      
    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2405(a)(2), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installationand location outside the United States, and in the 
amount, set forth in the following table:


               Defense Agencies: Outside the United States              
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      Location             Amount    
------------------------------------------------------------------------
Defense Logistics Agency.......  Defense Fuel Support                   
                                  Point, Guam...........     $16,000,000
                                                         ---------------
                                   Total................     $16,000,000
------------------------------------------------------------------------

SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(a)(13)(A), the Secretary of 
Defense may carry out architectural and engineering services 
and construction design activities with respect to the 
construction or improvement of military family housing units in 
an amount not to exceed $50,000.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriation in section 2405(a)(13)(A), the Secretary of 
Defense may improve existing military family housing units in 
an amount not to exceed $4,900,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(a)(11), the Secretary of Defense 
may carry out energy conservation projects under section 2865 
of title 10, United States Code.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1997, for military construction, land acquisition, and military 
family housing functions of the Department of Defense (other 
than the military departments), in the total amount of 
$2,743,670,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2401(a), 
        $407,890,000.
            (2) For military construction projects outside the 
        United States authorized by section 2401(b), 
        $16,000,000.
            (3) For military construction projects at Anniston 
        Army Depot, Alabama, ammunition demilitarization 
        facility, authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 1993 
        (division B of the Public Law 102-484; 106 Stat. 2587), 
        which was originally authorized as an Army construction 
        project, but which became a Defense Agencies 
        construction project by reason of the amendments made 
        by section 142 of the National Defense Authorization 
        Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
        2689), $9,900,000.
            (4) For military construction projects at Walter 
        Reed Army Institute of Research, Maryland, hospital 
        replacement, authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        1993 (division B of Public Law 102-484; 106 Stat. 
        2599), $20,000,000.
            (5) For military construction projects at Umatilla 
        Army Depot, Oregon, authorized by section 2401(a) of 
        the Military Construction Authorization Act for Fiscal 
        Year 1995 (division B of the Public Law 103-337; 108 
        Stat. 3040), as amended by section 2407 of the Military 
        Construction Authorization Act for Fiscal Year 1996 
        (division B of Public Law 104-106; 110 Stat. 539) and 
        section 2408(2) of this Act, $57,427,000.
            (6) For military construction projects at Defense 
        Finance and Accounting Service, Columbus, Ohio, 
        authorized by section 2401(a) of the Military 
        Construction Authorization Act of Fiscal Year 1996 
        (division B of Public Law 104-106; 110 Stat. 535), 
        $14,200,000.
            (7) For military construction projects at Naval 
        Hospital, Portsmouth, Virginia, hospital replacement, 
        authorized by section 2401(a) of the Military 
        Construction Authorization Act for Fiscal Years 1990 
        and 1991 (division B of Public Law 101-189; 103 Stat. 
        1640), $17,000,000.
            (8) For contingency construction projects of the 
        Secretary of Defense under section 2804 of title 10, 
        United States Code, $4,000,000.
            (9) For unspecified minor construction projects 
        under section 2805 of title 10, United States Code, 
        $26,075,000.
            (10) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $48,850,000.
            (11) For energy conservation projects authorized by 
        section 2404, $25,000,000.
            (12) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment 
        Act of 1990 (part A of title XXIX of Public Law 101-
        510; 10 U.S.C. 2687 note), $2,060,854,000.
            (13) For military family housing functions:
                    (A) For improvement and planning of 
                military family housing and facilities, 
                $4,950,000.
                    (B) For support of military housing 
                (including functions described in section 2833 
                of title 10, United States Code), $32,724,000 
                of which not more than $27,673,000 may be 
                obligated or expended for the leasing of 
                military family housing units worldwide.
    (b) Limitation of Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853 
of title 10, United States Code, and any other cost variations 
authorized by law, the total cost of all projects carried out 
under section 2401 of this Act may not exceed the total amount 
authorized to be appropriated under paragraphs (1) and (2) of 
subsection (a).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (13) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $1,200,000, which 
represents the combination of savings resulting from 
adjustments to foreign currency exchange rates for military 
construction projects and the support of military family 
housing outside the United States.

SEC. 2406. CLARIFICATION OF AUTHORITY RELATING TO FISCAL YEAR 1997 
                    PROJECT AT NAVAL STATION, PEARL HARBOR, HAWAII.

    The table in section 2401(a) of the Military Construction 
Authorization Act for Fiscal Year 1997 (division B of Public 
Law 104-201; 110 Stat. 2775) is amended in the item relating to 
Special Operations Command, Naval Station, Ford Island, Pearl 
Harbor, Hawaii, in the installation or location column by 
striking out ``Naval Station, Ford Island, Pearl Harbor, 
Hawaii'' and inserting in lieu thereof ``Naval Station, Pearl 
Harbor, Hawaii''.

SEC. 2407. CORRECTION IN AUTHORIZED USES OF FUNDS, MCCLELLAN AIR FORCE 
                    BASE, CALIFORNIA.

    (a) Authority To Use Prior Year Funds.--The Secretary of 
Defense may carry out the military construction projects 
referred to in subsection (b), in the amounts specified in that 
subsection, using amounts appropriated pursuant to the 
authorization of appropriations in section 2405(a)(1) of the 
Military Construction Authorization Act for Fiscal Year 1995 
(division B of Public Law 103-337; 108 Stat. 3042) for a 
military construction project involving the upgrade of the 
hospital facility at McClellan Air Force Base, California, as 
authorized by section 2401 of such Act (108 Stat. 3040).
    (b) Covered Projects.--Funds available under subsection (a) 
may be used for military construction projects as follows:
            (1) Construction of an addition to the Aeromedical 
        Clinic at Anderson Air Base, Guam, $3,700,000.
            (2) Construction of an occupational health clinic 
        facility at Tinker Air Force Base, Oklahoma, 
        $6,500,000.

SEC. 2408. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    1995 PROJECTS.

    The table in section 2401 of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3040), as amended by section 2407 of the 
Military Construction Authorization Act for Fiscal Year 1996 
(division B of Public Law 104-106; 110 Stat. 539), under the 
agency heading relating to Chemical Weapons and Munitions 
Destruction, is amended--
            (1) in the item relating to Pine Bluff Arsenal, 
        Arkansas, by striking out ``$115,000,000'' in the 
        amount column and inserting in lieu thereof 
        ``$134,000,000''; and
            (2) in the item relating to Umatilla Army Depot, 
        Oregon, by striking out ``$186,000,000'' in the amount 
        column and inserting in lieu thereof ``$187,000,000''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the 
North Atlantic Treaty Organization Security Investment program 
as provided in section 2806 of title 10, United States Code, in 
an amount not to exceed the sum of the amount authorized to be 
appropriated for this purpose in section 2502 and the amount 
collected from the North Atlantic Treaty Organization as a 
result of construction previously financed by the United 
States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal 
years beginning after September 30, 1997, for contributions by 
the Secretary of Defense under section 2806 of title 10, United 
States Code, for the share of the United States of the cost of 
projects for the North Atlantic Treaty Organization Security 
Investment program authorized by section 2501, in the amount of 
$152,600,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.
Sec. 2602. Authorization of military construction projects for which 
          funds have been appropriated.
Sec. 2603. Army Reserve construction project, Camp Williams, Utah.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
                    ACQUISITION PROJECTS.

    (a) In General.--There are authorized to be appropriated 
for fiscal years beginning after September 30, 1997, for the 
costs of acquisition, architectural and engineering services, 
and construction of facilities for the Guard and Reserve 
Forces, and for contributions therefor, under chapter 1803 of 
title 10, United States Code (including the cost of acquisition 
of land for those facilities), the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the 
                United States, $113,750,000; and
                    (B) for the Army Reserve, $66,267,000.
            (2) For the Department of the Navy, for the Naval 
        and Marine Corps Reserve, $47,329,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the 
                United States, $190,444,000; and
                    (B) for the Air Force Reserve, $30,243,000.
    (b) Adjustment.--The amount authorized to be appropriated 
pursuant to subsection (a)(1)(B) is reduced by $7,900,000, 
which represents the combination of project savings in military 
construction resulting from favorable bids, reduced overhead 
costs, and cancellations due to force structure changes.

SEC. 2602. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECTS FOR WHICH 
                    FUNDS HAVE BEEN APPROPRIATED.

    (a) Army National Guard, Hilo, Hawaii.--Paragraph (1)(A) of 
section 2601 of the Military Construction Authorization Act for 
Fiscal Year 1997 (division B of Public Law 104-201; 110 Stat. 
2780) is amended by striking out ``$59,194,000'' and inserting 
in lieu thereof ``$65,094,000'' to account for a project 
involving additions and alterations to an Army aviation support 
facility in Hilo, Hawaii.
    (b) Naval and Marine Corps Reserve, New Orleans.--Paragraph 
(2) of such section is amended by striking out ``$32,779,000'' 
and inserting in lieu thereof ``$37,579,000'' to account for a 
project for the construction of a bachelor enlisted quarters at 
Naval Air Station, New Orleans, Louisiana.

SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, CAMP WILLIAMS, UTAH.

    With regard to the military construction project for the 
Army Reserve concerning construction of a reserve center and 
organizational maintenance shop at Camp Williams, Utah, to be 
carried out using funds appropriated pursuant to the 
authorization of appropriations in section 2601(a)(1)(B), the 
Secretary of the Army shall enter into an agreement with the 
State of Utah under which the State agrees to provide financial 
or in-kind contributions toward land acquisition, site 
preparation, and relocation costs in connection with the 
project.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
          specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1995 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994 
          projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1993 
          projects.
Sec. 2705. Extension of authorizations of certain fiscal year 1992 
          projects.
Sec. 2706. Extension of availability of funds for construction of 
          relocatable over-the-horizon radar, Naval Station Roosevelt 
          Roads, Puerto Rico.
Sec. 2707. Effective date.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
                    SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except 
as provided in subsection (b), all authorizations contained in 
titles XXI through XXVI for military construction projects, 
land acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Security Investment program (and authorizations of 
appropriations therefor) shall expire on the later of--
            (1) October 1, 2000; or
            (2) the date of the enactment of an Act authorizing 
        funds for military construction for fiscal year 2001.
    (b) Exception.--Subsection (a) shall not apply to 
authorizations for military construction projects, land 
acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Security Investment program (and authorizations of 
appropriations therefor), for which appropriated funds have 
been obligated before the later of--
            (1) October 1, 2000; or
            (2) the date of the enactment of an Act authorizing 
        funds for fiscal year 2001 for military construction 
        projects, land acquisition, family housing projects and 
        facilities, or contributions to the North Atlantic 
        Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1995 
                    PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1995 
(division B of Public Law 103-337; 108 Stat. 3046), 
authorizations for the projects set forth in the tables in 
subsection (b), as provided in section 2101, 2201, 2202, 2301, 
2302, 2401, or 2601 of such Act, shall remain in effect until 
October 1, 1998, or the date of the enactment of an Act 
authorizing funds for military construction for fiscal year 
1999, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:


                                  Army: Extension of 1995 Project Authorization                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Fort Irwin...............  National Training Center                     
                                                                    Airfield Phase I............     $10,000,000
----------------------------------------------------------------------------------------------------------------



                                 Navy: Extension of 1995 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Maryland..............................  Indian Head Naval Surface                                               
                                         Warfare Center..........  Upgrade Power Plant..........      $4,000,000
                                        Indian Head Naval Surface                                               
                                         Warfare Center..........  Denitrification/Acid Mixing                  
                                                                    Facility....................      $6,400,000
Virginia..............................  Norfolk Marine Corps                                                    
                                         Security Force Battalion                                               
                                         Atlantic................  Bachelor Enlisted Quarters...      $6,480,000
Washington............................  Naval Station, Everett...  New Construction (Housing                    
                                                                    Office).....................        $780,000
CONUS Classified......................  Classified Location......  Aircraft Fire and Rescue and                 
                                                                    Vehicle Maintenance                         
                                                                    Facilities..................      $2,200,000
----------------------------------------------------------------------------------------------------------------



                               Air Force: Extension of 1995 Project Authorizations                              
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Beale Air Force Base.....  Consolidated Support Center..     $10,400,000
                                        Los Angeles Air Force                                                   
                                         Station.................  Family Housing (50 units)....      $8,962,000
North Carolina........................  Pope Air Force Base......  Combat Control Team Facility.      $2,450,000
                                        Pope Air Force Base......  Fire Training Facility.......      $1,100,000
----------------------------------------------------------------------------------------------------------------



                           Defense Agencies: Extension of 1995 Project Authorizations                           
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Alabama...............................  Anniston Army Depot......  Carbon Filtration System.....      $5,000,000
Arkansas..............................  Pine Bluff Arsenal.......  Ammunition Demilitarization                  
                                                                    Facility....................    $115,000,000
California............................  Defense Contract                                                        
                                         Management Area Office,                                                
                                         El Segundo..............  Administrative Building......      $5,100,000
Oregon................................  Umatilla Army Depot......  Ammunition Demilitarization                  
                                                                    Facility....................    $186,000,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1995 Project Authorizations                         
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Camp Roberts.............  Modify Record Fire/                          
                                                                    Maintenance Shop............      $3,910,000
                                        Camp Roberts.............  Combat Pistol Range..........        $952,000
Pennsylvania..........................  Fort Indiantown Gap......  Barracks.....................      $6,200,000
----------------------------------------------------------------------------------------------------------------



                             Naval Reserve: Extension of 1995 Project Authorization                             
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Georgia...............................  Naval Air Station                                                       
                                         Marietta................  Training Center..............      $2,650,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1994 
                    PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1994 
(division B of Public Law 103-160, 107 Stat. 1880), 
authorizations for the projects set forth in the tables in 
subsection (b), as provided in section 2201 or 2601 of such Act 
and extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 1997 (division B of Public 
Law 104-201; 110 Stat. 2783), shall remain in effect until 
October 1, 1998, or the date of the enactment of an Act 
authorizing funds for military construction for fiscal year 
1999, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:


                                 Navy: Extension of 1994 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Camp Pendleton Marine                                                   
                                         Corps Base..............  Sewage Facility..............      $7,930,000
Connecticut...........................  New London Naval                                                        
                                         Submarine Base..........  Hazardous Waste Transfer                     
                                                                    Facility....................      $1,450,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1994 Project Authorization                          
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
New Mexico..............................  White Sands Missile Range.  MATES.....................      $3,570,000
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993 
                    PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1993 
(division B of Public Law 102-484; 106 Stat. 2602), the 
authorizations for the projects set forth in the tables in 
subsection (b), as provided in section 2101 or 2601 of such Act 
and extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 1996 (division B of Public 
Law 104-106; 110 Stat. 541) and section 2703 of the Military 
Construction Authorization Act for Fiscal Year 1997 (division B 
of Public Law 104-201; 110 Stat. 2784), shall remain in effect 
until October 1, 1998, or the date of the enactment of an Act 
authorizing funds for military construction for fiscal year 
1999, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:


                                  Army: Extension of 1993 Project Authorization                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Arkansas................................  Pine Bluff Arsenal........  Ammunition                                
                                                                       Demilitarization Support                 
                                                                       Facility.................     $15,000,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1993 Project Authorization                          
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alabama.................................  Union Springs.............  Armory....................        $813,000
----------------------------------------------------------------------------------------------------------------

SEC. 2705. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992 
                    PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1992 
(division B of Public Law 102-190; 105 Stat. 1535), 
authorizations for the projects set forth in the table in 
subsection (b), as provided in section 2101 of such Act and 
extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3047), section 2703 of the Military 
Construction Authorization Act for Fiscal Year 1996 (division B 
of Public Law 104-106; 110 Stat. 543), and section 2704 of the 
Military Construction Authorization Act for Fiscal Year 1997 
(division B of Public Law 104-201; 110 Stat. 2785), shall 
remain in effect until October 1, 1998, or the date of the 
enactment of an Act authorizing funds for military construction 
for fiscal year 1999, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as 
follows:


                                 Army: Extension of 1992 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Oregon..................................  Umatilla Army Depot.......  Ammunition                                
                                                                       Demilitarization Support                 
                                                                       Facility.................      $3,600,000
                                          Umatilla Army Depot.......  Ammunition                                
                                                                       Demilitarization                         
                                                                       Utilities................      $7,500,000
----------------------------------------------------------------------------------------------------------------

SEC. 2706. EXTENSION OF AVAILABILITY OF FUNDS FOR CONSTRUCTION OF 
                    RELOCATABLE OVER-THE-HORIZON RADAR, NAVAL STATION 
                    ROOSEVELT ROADS, PUERTO RICO.

    Amounts appropriated under the heading ``Drug Interdiction 
and Counter-Drug Activities, Defense'' in title VI of the 
Department of Defense Appropriations Act, 1995 (Public Law 103-
335; 108 Stat. 2615), and transferred to the ``Military 
Construction, Navy'' appropriation for construction of a 
relocatable over-the-horizon radar at Naval Station Roosevelt 
Roads, Puerto Rico, shall remain available for that purpose 
until the later of--
            (1) October 1, 1998; or
            (2) the date of enactment of an Act authorizing 
        funds for military construction for fiscal year 1999.

SEC. 2707. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take 
effect on the later of--
            (1) October 1, 1997; or
            (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                 Changes

Sec. 2801. Use of mobility enhancement funds for unspecified minor 
          construction.
Sec. 2802. Limitation on use of operation and maintenance funds for 
          facility repair projects.
Sec. 2803. Leasing of military family housing, United States Southern 
          Command, Miami, Florida.
Sec. 2804. Use of financial incentives provided as part of energy 
          savings and water conservation activities.
Sec. 2805. Congressional notification requirements regarding use of 
          Department of Defense housing funds for investments in 
          nongovernmental entities.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in ceiling for minor land acquisition projects.
Sec. 2812. Permanent authority regarding conveyance of utility systems.
Sec. 2813. Administrative expenses for certain real property 
          transactions.
Sec. 2814. Screening of real property to be conveyed by Department of 
          Defense.
Sec. 2815. Disposition of proceeds from sale of Air Force Plant 78, 
          Brigham City, Utah.
Sec. 2816. Fire protection and hazardous materials protection at Fort 
          Meade, Maryland.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Consideration of military installations as sites for new 
          Federal facilities.
Sec. 2822. Adjustment and diversification assistance to enhance 
          performance of military family support services by private 
          sector sources.
Sec. 2823. Security, fire protection, and other services at property 
          formerly associated with Red River Army Depot, Texas.
Sec. 2824. Report on closure and realignment of military installations.
Sec. 2825. Sense of Senate regarding utilization of savings derived from 
          base closure process.
Sec. 2826. Prohibition against certain conveyances of property at Naval 
          Station, Long Beach, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. [S2820. Land conveyance, Army Reserve Center, Greensboro, 
          Alabama.
Sec. 2832. [H2831. Land conveyance, James T. Coker Army Reserve Center, 
          Durant, Oklahoma.
Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago, 
          Illinois.
Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.
Sec. 2835. Land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyances, Fort Bragg, North Carolina.
Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot, Mineral 
          County, Nevada.
Sec. 2838. Expansion of land conveyance authority, Indiana Army 
          Ammunition Plant, Charlestown, Indiana.
Sec. 2839. Modification of land conveyance, Lompoc, California.
Sec. 2840. Modification of land conveyance, Rocky Mountain Arsenal, 
          Colorado.
Sec. 2841. Correction of land conveyance authority, Army Reserve Center, 
          Anderson, South Carolina.

                        Part II--Navy Conveyances

Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station, Brunswick, 
          Maine.
Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant No. 
          464, Oyster Bay, New York.
Sec. 2853. Correction of lease authority, Naval Air Station, Meridian, 
          Mississippi.

                     Part III--Air Force Conveyances

Sec. 2861. [H2861. Land transfer, Eglin Air Force Base, Florida.
Sec. 2862. [H2863. Land conveyance, March Air Force Base, California.
Sec. 2863. [H2864/S2818. Land conveyance, Ellsworth Air Force Base, 
          South Dakota.
Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.
Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and Havre 
          Training Site, Montana.
Sec. 2866. Land conveyance, Charleston Family Housing Complex, Bangor, 
          Maine.
Sec. 2867. Study of land exchange options, Shaw Air Force Base, South 
          Carolina.

                        Subtitle E--Other Matters

Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.
Sec. 2872. Long-term lease of property, Naples, Italy.
Sec. 2873. [H2883. Designation of military family housing at Lackland 
          Air Force Base, Texas, in honor of Frank Tejeda, a former 
          Member of the House of Representatives.
Sec. 2874. Fiber-optics based telecommunications linkage of military 
          installations.

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

SEC. 2801. USE OF MOBILITY ENHANCEMENT FUNDS FOR UNSPECIFIED MINOR 
                    CONSTRUCTION.

    (a) Congressional Notification.--Subsection (b)(1) of 
section 2805 of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``This paragraph 
shall apply even though the project is to be carried out using 
funds made available to enhance the deployment and mobility of 
military forces and supplies.''.
    (b) Restriction on Use of Operation and Maintenance 
Funds.--Subsection (c) of such section is amended--
            (1) in paragraph (1), by striking out ``paragraph 
        (2)'' and inserting in lieu thereof ``paragraphs (2) 
        and (3)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(3) The limitations specified in paragraph (1) shall not 
apply to an unspecified minor military construction project if 
the project is to be carried out using funds made available to 
enhance the deployment and mobility of military forces and 
supplies.''.
    (c) Technical Amendments.--Such section is further 
amended--
            (1) in subsection (a)(1)--
                    (A) by striking out ``minor military 
                construction projects'' in the first sentence 
                and inserting in lieu thereof ``unspecified 
                minor military construction projects'';
                    (B) by striking out ``A minor'' in the 
                second sentence and inserting in lieu thereof 
                ``An unspecified minor''; and
                    (C) by striking out ``a minor'' in the last 
                sentence and inserting in lieu thereof ``an 
                unspecified minor'';
            (2) in subsection (b)(1), by striking out ``A 
        minor'' and inserting in lieu thereof ``An unspecified 
        minor'';
            (3) in subsection (b)(2), by striking out ``a 
        minor'' and inserting in lieu thereof ``an unspecified 
        minor''; and
            (4) in subsection (c), by striking out 
        ``unspecified military'' each place it appears and 
        inserting in lieu thereof ``unspecified minor 
        military''.

SEC. 2802. LIMITATION ON USE OF OPERATION AND MAINTENANCE FUNDS FOR 
                    FACILITY REPAIR PROJECTS.

    Section 2811 of title 10, United States Code, is amended by 
adding at the end the following new subsections:
    ``(d) Congressional Notification.--When a decision is made 
to carry out a repair project under this section with an 
estimated cost in excess of $10,000,000, the Secretary 
concerned shall submit to the appropriate committees of 
Congress a report containing--
            ``(1) the justification for the repair project and 
        the current estimate of the cost of the project; and
            ``(2) the justification for carrying out the 
        project under this section.
    ``(e) Repair Project Defined.--In this section, the term 
`repair project' means a project to restore a real property 
facility, system, or component to such a condition that it may 
effectively be used for its designated functional purpose.''.

SEC. 2803. LEASING OF MILITARY FAMILY HOUSING, UNITED STATES SOUTHERN 
                    COMMAND, MIAMI, FLORIDA.

    (a) Leases to Exceed Maximum Rental.--Section 2828(b) of 
title 10, United States Code, is amended--
            (1) in paragraph (2), by striking out ``paragraph 
        (3)'' and inserting in lieu thereof ``paragraphs (3) 
        and (4)'';
            (2) by redesignating paragraph (4) as paragraph 
        (5); and
            (3) by inserting after paragraph (3) the following 
        new paragraph:
    ``(4) The Secretary of the Army may lease not more than 
eight housing units in the vicinity of Miami, Florida, for key 
and essential personnel, as designated by the Secretary, for 
the United States Southern Command for which the expenditure 
for the rental of such units (including the cost of utilities, 
maintenance, and operation, including security enhancements) 
exceeds the expenditure limitations in paragraphs (2) and (3). 
The total amount for all leases under this paragraph may not 
exceed $280,000 per year, and no lease on any individual 
housing unit may exceed $60,000 per year.''.
    (b) Conforming Amendment.--Paragraph (5) of such section, 
as redesignated by subsection (a)(2), is amended by striking 
out ``paragraphs (2) and (3)'' and inserting in lieu thereof 
``paragraphs (2), (3), and (4)''.

SEC. 2804. USE OF FINANCIAL INCENTIVES PROVIDED AS PART OF ENERGY 
                    SAVINGS AND WATER CONSERVATION ACTIVITIES.

    (a) Energy Savings.--Section 2865 of title 10, United 
States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking out ``and 
                financial incentives described in subsection 
                (d)(2)'';
                    (B) in paragraph (2), by striking out 
                ``section 2866(b)'' both places it appears and 
                inserting in lieu thereof ``section 
                2866(a)(3)''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(3) Financial incentives received from gas or electric 
utilities under subsection (d)(2), and from utilities for 
management of water demand or water conservation under section 
2866(a)(2) of this title, shall be credited to an appropriation 
designated by the Secretary of Defense. Amounts so credited 
shall be merged with the appropriation to which credited and 
shall be available for the same purposes and the same period as 
the appropriation with which merged.''; and
            (2) in subsection (f), by adding at the end the 
        following new sentence: ``The Secretary shall also 
        include in each report the types and amount of 
        financial incentives received under subsection (d)(2) 
        and section 2866(a)(2) of this title during the period 
        covered by the report and the appropriation account or 
        accounts to which the incentives were credited.''.
    (b) Water Conservation.--Section 2866(b) of such title is 
amended to read as follows:
    ``(b) Use of Financial Incentives and Water Cost Savings.--
(1) Financial incentives received under subsection (a)(2) shall 
be used as provided in section 2865(b)(3) of this title.
    ``(2) Water cost savings realized under subsection (a)(3) 
shall be used as provided in section 2865(b)(2) of this 
title.''.

SEC. 2805. CONGRESSIONAL NOTIFICATION REQUIREMENTS REGARDING USE OF 
                    DEPARTMENT OF DEFENSE HOUSING FUNDS FOR INVESTMENTS 
                    IN NONGOVERNMENTAL ENTITIES.

    Section 2875 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
      ``(e) Congressional Notification Required.--Amounts in 
the Department of Defense Family Housing Improvement Fund or 
the Department of Defense Military Unaccompanied Housing 
Improvement Fund may be used to make a cash investment under 
this section in a nongovernmental entity only after the end of 
the 30-day period beginning on the date the Secretary of 
Defense submits written notice of, and justification for, the 
investment to the appropriate committees of Congress.''.

        Subtitle B--Real Property And Facilities Administration

SEC. 2811. INCREASE IN CEILING FOR MINOR LAND ACQUISITION PROJECTS.

    (a) Increase.--Section 2672 of title 10, United States 
Code, is amended by striking out ``$200,000'' both places it 
appears in subsection (a) and inserting in lieu thereof 
``$500,000''.
    (b) Clerical Amendments.--(1) The section heading for such 
section is amended to read as follows:

``Sec. 2672. Acquisition: interests in land when cost is not more than 
                    $500,000''.

    (2) The table of sections at the beginning of chapter 159 
of such title is amended by striking out the item relating to 
section 2672 and inserting in lieu thereof the following new 
item:

``2672. Acquisition: interests in land when cost is not more than 
          $500,000.''.

SEC. 2812. PERMANENT AUTHORITY REGARDING CONVEYANCE OF UTILITY SYSTEMS.

    (a) In General.--Chapter 159 of title 10, United States 
Code, is amended by inserting after section 2687 the following 
new section:

``Sec. 2688. Utility systems: conveyance authority

    ``(a) Conveyance Authority.--The Secretary of a military 
department may convey a utility system, or part of a utility 
system, under the jurisdiction of the Secretary to a municipal, 
private, regional, district, or cooperative utility company or 
other entity. The conveyance may consist of all right, title, 
and interest of the United States in the utility system or such 
lesser estate as the Secretary considers appropriate to serve 
the interests of the United States.
    ``(b) Selection of Conveyee.--If more than one utility or 
entity referred to in subsection (a) notifies the Secretary 
concerned of an interest in a conveyance under such subsection, 
the Secretary shall carry out the conveyance through the use of 
competitive procedures.
    ``(c) Consideration.--(1) The Secretary concerned shall 
require as consideration for a conveyance under subsection (a) 
an amount equal to the fair market value (as determined by the 
Secretary) of the right, title, or interest of the United 
States conveyed. The consideration may take the form of--
            ``(A) a lump sum payment; or
            ``(B) a reduction in charges for utility services 
        provided by the utility or entity concerned to the 
        military installation at which the utility system is 
        located.
    ``(2) If the utility services proposed to be provided as 
consideration under paragraph (1) are subject to regulation by 
a Federal or State agency, any reduction in the rate charged 
for the utility services shall be subject to establishment or 
approval by that agency.
    ``(d) Treatment of Payments.--(1) A lump sum payment 
received under subsection (c) shall be credited, at the 
election of the Secretary concerned--
            ``(A) to an appropriation of the military 
        department concerned available for the procurement of 
        the same utility services as are provided by the 
        utility system conveyed under this section;
            ``(B) to an appropriation of the military 
        department available for carrying out energy savings 
        projects or water conservation projects; or
            ``(C) to an appropriation of the military 
        department available for improvements to other utility 
        systems.
    ``(2) Amounts so credited shall be merged with funds in the 
appropriation to which credited and shall be available for the 
same purposes, and subject to the same conditions and 
limitations, as the appropriation with which merged.
    ``(e) Notice-and-Wait Requirement.--The Secretary concerned 
may not make a conveyance under subsection (a) until--
            ``(1) the Secretary submits to the Committee on 
        Armed Services and the Committee on Appropriations of 
        the Senate and the Committee on National Security and 
        the Committee on Appropriations of the House of 
        Representatives an economic analysis (based upon 
        accepted life-cycle costing procedures approved by the 
        Secretary of Defense) demonstrating that--
                    ``(A) the long-term economic benefit of the 
                conveyance to the United States exceeds the 
                long-term economic cost of the conveyance to 
                the United States; and
                    ``(B) the conveyance will reduce the long-
                term costs of the United States for utility 
                services provided by the utility system 
                concerned; and
            ``(2) a period of 21 days has elapsed after the 
        date on which the economic analysis is received by the 
        committees.
    ``(f) Additional Terms and Conditions.--The Secretary 
concerned may require such additional terms and conditions in 
connection with a conveyance under subsection (a) as the 
Secretary considers appropriate to protect the interests of the 
United States.
    ``(g) Utility System Defined.--(1) In this section, the 
term `utility system' means any of the following:
            ``(A) A system for the generation and supply of 
        electric power.
            ``(B) A system for the treatment or supply of 
        water.
            ``(C) A system for the collection or treatment of 
        wastewater.
            ``(D) A system for the generation or supply of 
        steam, hot water, and chilled water.
            ``(E) A system for the supply of natural gas.
            ``(F) A system for the transmission of 
        telecommunications.
    ``(2) The term `utility system' includes the following:
            ``(A) Equipment, fixtures, structures, and other 
        improvements utilized in connection with a system 
        referred to in paragraph (1).
            ``(B) Easements and rights-of-ways associated with 
        a system referred to in that paragraph.
    ``(h) Limitation.--This section shall not apply to projects 
constructed or operated by the Army Corps of Engineers under 
its civil works authorities.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2687 the following new item:

``2688. Utility systems: conveyance authority.''.

SEC. 2813. ADMINISTRATIVE EXPENSES FOR CERTAIN REAL PROPERTY 
                    TRANSACTIONS.

    (a) Acceptance Authorized.--Chapter 159 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 2695. Acceptance of funds to cover administrative expenses 
                    relating to certain real property transactions

    ``(a) Authority To Accept.--In connection with a real 
property transaction referred to in subsection (b) with a non-
Federal person or entity, the Secretary of a military 
department may accept amounts provided by the person or entity 
to cover administrative expenses incurred by the Secretary in 
entering into the transaction.
    ``(b) Covered Transactions.--Subsection (a) applies to the 
following transactions:
            ``(1) The exchange of real property.
            ``(2) The grant of an easement over, in, or upon 
        real property of the United States.
            ``(3) The lease or license of real property of the 
        United States.
    ``(c) Use of Amounts Collected.--Amounts collected under 
subsection (a) for administrative expenses shall be credited to 
the appropriation, fund, or account from which the expenses 
were paid. Amounts so credited shall be merged with funds in 
such appropriation, fund, or account and shall be available for 
the same purposes and subject to the same limitations as the 
funds with which merged.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 159 of such title is amended by adding at 
the end the following new item:

``2695. Acceptance of funds to cover administrative expenses relating to 
          certain real property transactions.''.

SEC. 2814. SCREENING OF REAL PROPERTY TO BE CONVEYED BY DEPARTMENT OF 
                    DEFENSE.

    (a) Requirement.--(1) Chapter 159 of title 10, United 
States Code, is amended by inserting after section 2695, as 
added by section 2813, the following new section:

``Sec. 2696. Screening of real property for further Federal use before 
                    conveyance

    ``(a) Screening Requirement.--The Secretary concerned may 
not convey real property that is authorized or required to be 
conveyed, whether for or without consideration, by any 
provision of law unless the Administrator of General Services 
has screened the property for further Federal use in accordance 
with the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 471 et seq.).
    ``(b) Time for Screening.--(1) Before the end of the 30-day 
period beginning on the date of the enactment of a provision of 
law authorizing or requiring the conveyance of a parcel of real 
property by the Secretary concerned, the Administrator of 
General Services shall complete the screening required by 
paragraph (1) with regard to the real property and notify the 
Secretary concerned of the results of the screening. The notice 
shall include--
            ``(A) the name of the Federal agency requesting 
        transfer of the property;
            ``(B) the proposed use to be made of the property 
        by the Federal agency; and
            ``(C) the fair market value of the property, 
        including any improvements thereon, as estimated by the 
        Administrator.
    ``(2) If the Administrator fails to complete the screening 
and notify the Secretary concerned within such period, the 
Secretary concerned shall proceed with the conveyance of the 
real property as provided in the provision of law authorizing 
or requiring the conveyance.
    ``(c) Notice of Further Federal Use.--If the Administrator 
of General Services notifies the Secretary concerned under 
subsection (b) that further Federal use of a parcel of real 
property authorized or required to be conveyed by any provision 
of law is requested by a Federal agency, the Secretary 
concerned shall submit a copy of the notice to Congress.
    ``(d) Congressional Disapproval.--If the Secretary 
concerned submits a notice under subsection (c) with regard to 
a parcel of real property, the Secretary concerned may not 
proceed with the conveyance of the real property as provided in 
the provision of law authorizing or requiring the conveyance if 
Congress enacts a law rescinding the conveyance authority or 
requirement before the end of the 180-day period beginning on 
the date on which the Secretary concerned submits the notice.
    ``(e) Excepted Conveyance Authorities.--The screening 
requirements of this section shall not apply to real property 
authorized or required to be conveyed under any of the 
following provisions of law:
            ``(1) Section 2687 of this title.
            ``(2) Title II of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public 
        Law 100-526; 10 U.S.C. 2687 note).
            ``(3) The Defense Base Closure and Realignment Act 
        of 1990 (part A of title XXIX of Public Law 101-510; 10 
        U.S.C. 2687 note).
            ``(4) Any provision of law authorizing the closure 
        or realignment of a military installation that is 
        enacted after the date of enactment of the National 
        Defense Authorization Act for Fiscal Year 1998.
            ``(5) Title II of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 481 et 
        seq.).
            ``(6) Any specific provision of law authorizing or 
        requiring the transfer of administrative jurisdiction 
        over a parcel of real property between Federal 
        agencies.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
2695, as added by section 2813, the following new item:

``2696. Screening of real property for further Federal use before 
          conveyance.''.

    (b) Applicability.--Section 2696 of title 10, United States 
Code, as added by subsection (a) of this section, shall apply 
with respect to any real property authorized or required to be 
conveyed under a provision of law covered by such section that 
is enacted after December 31, 1997.

SEC. 2815. DISPOSITION OF PROCEEDS OF SALE OF AIR FORCE PLANT NO. 78, 
                    BRIGHAM CITY, UTAH.

    Notwithstanding section 204(h)(2)(A) of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 
485(h)(2)(A)), the entire amount deposited by the Administrator 
of General Services in the special account in the Treasury 
(established under section 204(h)(2) of such Act) as a result 
of the sale of Air Force Plant No. 78, Brigham City, Utah, 
shall be available, to the extent provided in appropriations 
Acts, to the Secretary of the Air Force for facility 
maintenance, facility repair, and environmental restoration at 
other industrial plants of the Air Force.

SEC. 2816. FIRE PROTECTION AND HAZARDOUS MATERIALS PROTECTION AT FORT 
                    MEADE, MARYLAND.

    (a) Plan.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of the Army shall submit 
to the congressional defense committees a plan to address the 
requirements for fire protection services and hazardous 
materials protection services at Fort Meade, Maryland, 
including the National Security Agency at Fort Meade, as 
identified in the preparedness evaluation report of the Army 
Corps of Engineers regarding Fort Meade.
    (b) Elements.--The plan shall include the following:
            (1) A schedule for the implementation of the plan.
            (2) A detailed list of funding options available to 
        provide centrally located, modern facilities and 
        equipment to meet current requirements for fire 
        protection services and hazardous materials protection 
        services at Fort Meade.

            Subtitle C--Defense Base Closure and Realignment

SEC. 2821. CONSIDERATION OF MILITARY INSTALLATIONS AS SITES FOR NEW 
                    FEDERAL FACILITIES.

    (a) 1988 Law.--Section 204(b)(5) of the Defense 
Authorization Amendments and Base Closure and Realignment Act 
(Public Law 100-526; 10 U.S.C. 2687 note) is amended--
            (1) in subparagraph (A), by striking out 
        ``subparagraph (B)'' and inserting in lieu thereof 
        ``subparagraphs (B) and (C)''; and
            (2) by adding at the end the following new 
        subparagraph:
    ``(C)(i) Before acquiring non-Federal real property as the 
location for a new or replacement Federal facility of any type, 
the head of the Federal agency acquiring the property shall 
consult with the Secretary regarding the feasibility and cost 
advantages of using Federal property or facilities at a 
military installation closed or realigned or to be closed or 
realigned under this title as the location for the new or 
replacement facility. In considering the availability and 
suitability of a specific military installation, the Secretary 
and the head of the Federal agency involved shall obtain the 
concurrence of the redevelopment authority with respect to the 
installation and comply with the redevelopment plan for the 
installation.
    ``(ii) Not later than 30 days after acquiring non-Federal 
real property as the location for a new or replacement Federal 
facility, the head of the Federal agency acquiring the property 
shall submit to Congress a report containing the results of 
theconsultation under clause (i) and the reasons why military 
installations referred to in such clause that are located within the 
area to be served by the new or replacement Federal facility or within 
a 200-mile radius of the new or replacement facility, whichever area is 
greater, were considered to be unsuitable or unavailable for the site 
of the new or replacement facility.
    ``(iii) This subparagraph shall apply during the period 
beginning on the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1998 and ending on July 31, 
2001.''.
    (b) 1990 Law.--Section 2905(b)(5) of the Defense Base 
Closure and Realignment Act of 1990 (Public Law 101-510; 10 
U.S.C. 2687 note) is amended--
            (1) in subparagraph (A), by striking out 
        ``subparagraph (B)'' and inserting in lieu thereof 
        ``subparagraphs (B) and (C)''; and
            (2) by adding at the end the following new 
        subparagraph:
    ``(C)(i) Before acquiring non-Federal real property as the 
location for a new or replacement Federal facility of any type, 
the head of the Federal agency acquiring the property shall 
consult with the Secretary regarding the feasibility and cost 
advantages of using Federal property or facilities at a 
military installation closed or realigned or to be closed or 
realigned under this part as the location for the new or 
replacement facility. In considering the availability and 
suitability of a specific military installation, the Secretary 
and the head of the Federal agency involved shall obtain the 
concurrence of the redevelopment authority with respect to the 
installation and comply with the redevelopment plan for the 
installation.
    ``(ii) Not later than 30 days after acquiring non-Federal 
real property as the location for a new or replacement Federal 
facility, the head of the Federal agency acquiring the property 
shall submit to Congress a report containing the results of the 
consultation under clause (i) and the reasons why military 
installations referred to in such clause that are located 
within the area to be served by the new or replacement Federal 
facility or within a 200-mile radius of the new or replacement 
facility, whichever area is greater, were considered to be 
unsuitable or unavailable for the site of the new or 
replacement facility.
    ``(iii) This subparagraph shall apply during the period 
beginning on the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1998 and ending on July 31, 
2001.''.

SEC. 2822. ADJUSTMENT AND DIVERSIFICATION ASSISTANCE TO ENHANCE 
                    PERFORMANCE OF MILITARY FAMILY SUPPORT SERVICES BY 
                    PRIVATE SECTOR SOURCES.

    Section 2391(b)(5) of title 10, United States Code, is 
amended by adding at the end the following new subparagraph:
    ``(C) The Secretary of Defense may also make grants, 
conclude cooperative agreements, and supplement other Federal 
funds in order to assist a State or local government in 
enhancing the capabilities of the government to support efforts 
of the Department of Defense to privatize, contract for, or 
diversify the performance of military family support services 
in cases in which the capability of the Department to provide 
such services is adversely affected by an action described in 
paragraph (1).''.

SEC. 2823. SECURITY, FIRE PROTECTION, AND OTHER SERVICES AT PROPERTY 
                    FORMERLY ASSOCIATED WITH RED RIVER ARMY DEPOT, 
                    TEXAS.

    (a) Authority To Enter into Agreement.--(1) The Secretary 
of the Army may enter into an agreement with the local 
redevelopment authority for Red River Army Depot, Texas, under 
which agreement the Secretary provides security services, fire 
protection services, or hazardous material response services 
for the authority with respect to the property at the depot 
that is under the jurisdiction of the authority as a result of 
the realignment of the depot under the base closure laws.
    (2) The Secretary may not enter into the agreement unless 
the Secretary determines that the provision of services under 
the agreement is in the best interests of the United States.
    (b) Reimbursement.--The agreement under subsection (a) 
shall provide for reimbursing the Secretary for the services 
provided by the Secretary under the agreement.
    (c) Treatment of Reimbursement.--Any amounts received by 
the Secretary under subsection (b) as reimbursement for 
services provided under the agreement entered into under 
subsection (a) shall be credited to the appropriations 
providing funds for the services. Amounts so credited shall be 
merged with the appropriations to which credited and shall be 
available for the purposes, and subject to the conditions and 
limitations, for which such appropriations are available.

SEC. 2824. REPORT ON CLOSURE AND REALIGNMENT OF MILITARY INSTALLATIONS.

    (a) Report.--(1) The Secretary of Defense shall prepare and 
submit to the congressional defense committees a report on the 
costs and savings attributable to the rounds of base closures 
and realignments conducted under the base closure laws and on 
the need, if any, for additional rounds of base closures and 
realignments.
    (2) For purposes of this section, the term ``base closure 
laws'' means--
            (A) Title II of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public 
        Law 100-526; 10 U.S.C. 2687 note); and
            (B) the Defense Base Closure and Realignment Act of 
        1990 (part A of title XXIX of Public Law 101-510; 10 
        U.S.C. 2687 note).
    (b) Elements.--The report under subsection (a) shall 
include the following:
            (1) A statement, using data consistent with budget 
        data, of the actual costs and savings (to the extent 
        available for prior fiscal years) and the estimated 
        costs and savings (in the case of future fiscal years) 
        attributable to the closure and realignment of military 
        installations as a result of the base closure laws.
            (2) A comparison, set forth by base closure round, 
        of the actual costs and savings stated under paragraph 
        (1) to the estimates of costs and savings submitted to 
        the Defense Base Closure and Realignment Commission as 
        part of the base closure process.
            (3) A comparison, set forth by base closure round, 
        of the actual costs and savings stated under paragraph 
        (1) to the annual estimates of costs and savings 
        previously submitted to Congress.
            (4) A list of each military installation at which 
        there is authorized to be employed 300 or more civilian 
        personnel, set forth by Armed Force.
            (5) An estimate of current excess capacity at 
        military installations, set forth--
                    (A) as a percentage of the total capacity 
                of the military installations of the Armed 
                Forces with respect to all military 
                installations of the Armed Forces;
                    (B) as a percentage of the total capacity 
                of the military installations of each Armed 
                Force with respect to the military 
                installations of such Armed Force; and
                    (C) as a percentage of the total capacity 
                of a type of military installations with 
                respect to military installations of such type.
            (6) An assessment of the effect of the previous 
        base closure rounds on military capabilities and the 
        ability of the Armed Forces to fulfill the National 
        Military Strategy.
            (7) A description of the types of military 
        installations that would be recommended for closure or 
        realignment in the event of one or more additional base 
        closure rounds, set forth by Armed Force.
            (8) The criteria to be used by the Secretary in 
        evaluating military installations for closure or 
        realignment in such event.
            (9) The methodologies to be used by the Secretary 
        in identifying military installations for closure or 
        realignment in such event.
            (10) An estimate of the costs and savings that the 
        Secretary believes will be achieved as a result of the 
        closureor realignment of military installations in such 
event, set forth by Armed Force and by year.
            (11) An assessment of whether the costs and 
        estimated savings from one or more future rounds of 
        base closures and realignments, currently unauthorized, 
        are already contained in the current Future Years 
        Defense Plan, and, if not, whether the Secretary will 
        recommend modifications in future defense spending in 
        order to accommodate such costs and savings.
    (c) Method of Presenting Information.--The statement and 
comparison required by paragraphs (1) and (2) of subsection (b) 
shall be set forth by Armed Force, type of facility, and fiscal 
year, and include the following:
            (1) Operation and maintenance costs, including 
        costs associated with expanded operations and support, 
        maintenance of property, administrative support, and 
        allowances for housing at military installations to 
        which functions are transferred as a result of the 
        closure or realignment of other installations.
            (2) Military construction costs, including costs 
        associated with rehabilitating, expanding, and 
        constructing facilities to receive personnel and 
        equipment that are transferred to military 
        installations as a result of the closure or realignment 
        of other installations.
            (3) Environmental cleanup costs, including costs 
        associated with assessments and restoration.
            (4) Economic assistance costs, including--
                    (A) expenditures on Department of Defense 
                demonstration projects relating to economic 
                assistance;
                    (B) expenditures by the Office of Economic 
                Adjustment; and
                    (C) to the extent available, expenditures 
                by the Economic Development Administration, the 
                Federal Aviation Administration, and the 
                Department of Labor relating to economic 
                assistance.
            (5) To the extent information is available, 
        unemployment compensation costs, early retirement 
        benefits (including benefits paid under section 5597 of 
        title 5, United States Code), and worker retraining 
        expenses under the Priority Placement Program, the Job 
        Training Partnership Act, and any other Federally-
        funded job training program.
            (6) Costs associated with military health care.
            (7) Savings attributable to changes in military 
        force structure.
            (8) Savings due to lower support costs with respect 
        to military installations that are closed or realigned.
    (d) Deadline.--The Secretary shall submit the report under 
subsection (a) not later than the date on which the President 
submits to Congress the budget for fiscal year 2000 under 
section 1105(a) of title 31, United States Code.
    (e) Review.--The Congressional Budget Office and the 
Comptroller General shall conduct a review of the report 
prepared under subsection (a).
    (f) Prohibition on Use of Funds.--Except as necessary to 
prepare the report required subsection (a), no funds authorized 
to be appropriated or otherwise made available to the 
Department of Defense by this Act or any other Act may be used 
for the purposes of planning for, or collecting data in 
anticipation of, an authorization providing for procedures 
under which the closure and realignment of military 
installations may be accomplished, until the later of--
            (1) the date on which the Secretary submits the 
        report required by subsection (a); and
            (2) the date on which the Congressional Budget 
        Office and the Comptroller General complete a review of 
        the report under subsection (e).
    (g) Sense of Congress.--It is the sense of the Congress 
that--
            (1) the Secretary should develop a system having 
        the capacity to quantify the actual costs and savings 
        attributable to the closure and realignment of military 
        installations pursuant to the base closure process; and
            (2) the Secretary should develop the system in 
        expedient fashion, so that the system may be used to 
        quantifycosts and savings attributable to the 1995 base 
closure round.

SEC. 2825. SENSE OF SENATE REGARDING UTILIZATION OF SAVINGS DERIVED 
                    FROM BASE CLOSURE PROCESS.

    (a) Findings.--The Senate makes the following findings:
            (1) Since 1988, the Department of Defense has 
        conducted four rounds of closures and realignments of 
        military installations in the United States, resulting 
        in the closure of 97 installations.
            (2) The cost of carrying out the closure or 
        realignment of installations covered by such rounds is 
        estimated by the Secretary of Defense to be 
        $23,000,000,000.
            (3) The savings expected as a result of the closure 
        or realignment of such installations are estimated by 
        the Secretary to be $10,300,000,000 through fiscal year 
        1996 and $36,600,000,000 through 2001.
            (4) In addition to such savings, the Secretary has 
        estimated recurring savings as a result of the closure 
        or realignment of such installations of approximately 
        $5,600,000,000 annually.
            (5) The fiscal year 1997 budget request for the 
        Department assumed a savings of between $2,000,000,000 
        and $3,000,000,000 as a result of the closure or 
        realignment of such installations, which savings were 
        to be dedicated to the modernization of the Armed 
        Forces. The savings assumed in the budget request were 
        not realized.
            (6) The fiscal year 1998 budget request for the 
        Department assumes a savings of $5,000,000,000 as a 
        result of the closure or realignment of such 
        installations, which savings are to be dedicated to the 
        modernization of the Armed Forces.
    (b) Sense of Senate on Use of Savings Resulting from Base 
Closure Process.--It is the sense of the Senate that the 
savings identified in the report under section 2824 should be 
made available to the Department of Defense solely for purposes 
of the modernization of new weapon systems (including research, 
development, test, and evaluation relating to such 
modernization) and should be used by the Department solely for 
such purposes.

SEC. 2826. PROHIBITION AGAINST CERTAIN CONVEYANCES OF PROPERTY AT NAVAL 
                    STATION, LONG BEACH, CALIFORNIA.

    (a) Prohibition Against Direct Conveyance.--In disposing of 
real property in connection with the closure of Naval Station, 
Long Beach, California, under the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note), the Secretary of the Navy may 
not convey any portion of the property (by sale, lease, or 
other method) to the China Ocean Shipping Company or any legal 
successor or subsidiary of that Company (in this section 
referred to as ``COSCO'').
    (b) Prohibition Against Indirect Conveyance.--The Secretary 
of the Navy shall impose as a condition on each conveyance of 
real property located at Naval Station, Long Beach, California, 
the requirement that the property may not be subsequently 
conveyed (by sale, lease, or other method) to COSCO.
    (c) Reversionary Interest.--If the Secretary of the Navy 
determines at any time that real property located at Naval 
Station, Long Beach, California, and conveyed under the Defense 
Base Closure and Realignment Act of 1990 has been conveyed to 
COSCO in violation of subsection (b) or is otherwise being used 
by COSCO in violation of such subsection, all right, title, and 
interest in and to the property shall revert to the United 
States, and the United States shall have immediate right of 
entry thereon.
    (d) National Security Report and Determination.--Not later 
than 30 days after the date of the enactment of this Act, the 
Secretary of Defense and the Director of the Federal Bureau of 
Investigation shall separately submit to the President and the 
congressional defense committees a report regarding the 
potential national security implications of conveying property 
described in subsection (a) to COSCO. Each report shall 
specifically identify any increased risk of espionage,arms 
smuggling, or other illegal activities that could result from a 
conveyance to COSCO and recommend appropriate action to address any 
such risk.
    (e) Waiver Authority.--(1) The President may waive the 
prohibitions contained in this section with respect to a 
conveyance of property described in subsection (a) to COSCO if 
the President determines that--
            (A) appropriate action has been taken to address 
        any increased national security risk identified in the 
        reports required by subsection (d); and
            (B) the conveyance would not adversely affect 
        national security or significantly increase the 
        counter-intelligence burden on the intelligence 
        community.
    (2) Any waiver under paragraph (1) shall take effect 30 
days after the date on which the President notifies the Speaker 
of the House of Representatives and the President of the Senate 
of the President's determination to use the waiver authority 
provided under this subsection.

                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2831. LAND CONVEYANCE, ARMY RESERVE CENTER, GREENSBORO, ALABAMA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to Hale County, Alabama, all 
right, title, and interest of the United States in and to a 
parcel of real property consisting of approximately 5.17 acres 
and located at the Army Reserve Center, Greensboro, Alabama, 
that was conveyed by Hale County, Alabama, to the United States 
by warranty deed dated September 12, 1988.
    (b) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be as described in the deed referred to in that 
subsection.
    (c) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2832. LAND CONVEYANCE, JAMES T. COKER ARMY RESERVE CENTER, DURANT, 
                    OKLAHOMA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to Big Five Community Services, 
Incorporated, a nonprofit organization operating in Durant, 
Oklahoma, all right, title, and interest of the United States 
in and to a parcel of real property located at 1500 North First 
Street in Durant, Oklahoma, and containing the James T. Coker 
Army Reserve Center, if the Secretary determines that the 
Reserve Center is excess to the needs of the Armed Forces.
    (b) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that Big 
Five Community Services, Incorporated, retain the conveyed 
property for educational purposes.
    (c) Reversion.--If the Secretary determines at any time 
that the real property conveyed under subsection (a) is not 
being used for the purpose specified in subsection (b), all 
right, title, and interest in and to the real property, 
including any improvements thereon, shall revert to the United 
States, and the United States shall have the right of immediate 
entry thereon.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by Big 
Five Community Services, Incorporated.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2833. LAND CONVEYANCE, GIBSON ARMY RESERVE CENTER, CHICAGO, 
                    ILLINOIS.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the LawndaleBusiness and 
Local Development Corporation (in this section referred to as the 
``Corporation''), a nonprofit organization organized in the State of 
Illinois, all right, title, and interest of the United States in and to 
a parcel of real property, including improvements thereon, that is 
located at 4454 West Cermak Road in Chicago, Illinois, and contains the 
Gibson Army Reserve Center.
    (b) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that the 
Corporation--
            (1) use the conveyed property, directly or through 
        an agreement with a public or private entity, for 
        economic redevelopment purposes; or
            (2) convey the property to an appropriate public or 
        private entity for use for such purposes.
    (c) Reversion.--If the Secretary determines at any time 
that the real property conveyed under subsection (a) is not 
being used for economic redevelopment purposes, as required by 
subsection (b), all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Corporation.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2834. LAND CONVEYANCE, FORT A. P. HILL, VIRGINIA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to Caroline County, Virginia (in this section referred 
to as the ``County''), all right, title, and interest of the 
United States in and to a parcel of unimproved real property 
consisting of approximately 10 acres located at Fort A. P. 
Hill, Virginia. The purpose of the conveyance is to permit the 
County to establish a solid waste transfer and recycling 
facility on the property.
    (b) Consideration.--As consideration for the conveyance 
under subsection (a), the County shall permit the Army, at no 
cost to the Army, to dispose of not less than 1,800 tons of 
solid waste annually at the facility established on the 
conveyed property. The obligation of the County to accept solid 
waste under this subsection shall not commerce until after the 
solid waste transfer and recycling facility on the conveyed 
property becomes operational, and the establishment of a solid 
waste collection and transfer site on the .36-acre parcel 
described in subsection (d)(2) shall not be construed to impose 
the obligation.
    (c) Disclaimer.--The United States shall not be responsible 
for the provision or cost of utilities or any other 
improvements necessary to carry out the conveyance under 
subsection (a) or to establish or operate the solid waste 
transfer and recycling facility intended for the property.
    (d) Reversion.--(1) Except as provided in paragraph (2), if 
the Secretary determines that a solid waste transfer and 
recycling facility is not operational, before December 31, 
1999, on the real property conveyed under subsection (a), all 
right, title, and interest in and to such real property, 
including any improvements thereon, shall revert to the United 
States, and the United States shall have the right of immediate 
entry thereon.
    (2) Paragraph (1) shall not apply with respect to a parcel 
of approximately .36 acres of the approximately 10-acre parcel 
to be conveyed under subsection (a), which is included in the 
larger conveyance to permit the County to establish a solid 
waste collection and transfer site for residential waste.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2835. LAND CONVEYANCES, FORT DIX, NEW JERSEY.

    (a) Conveyances Authorized.--(1) The Secretary of the Army 
may convey, without consideration, to the Borough of 
Wrightstown, New Jersey (in this section referred to as the 
``Borough''), all right, title, and interest of the United 
States in and to a parcel of real property (including 
improvements thereon) consisting of approximately 39.69 acres 
located at Fort Dix, New Jersey, for the purpose of permitting 
the Borough to develop the parcel for economic purposes.
    (2) The Secretary may convey, without consideration, to the 
New Hanover Board of Education (in this section referred to as 
the ``Board''), all right, title, and interest of the United 
States in and to an additional parcel of real property 
(including improvements thereon) at Fort Dix consisting of 
approximately five acres for the purpose of permitting the 
Board to develop the parcel for educational purposes.
    (b) Conditions of Conveyance.--(1) The conveyance under 
subsection (a)(1) shall be subject to the condition that the 
Borough--
            (A) use the conveyed property, directly or through 
        an agreement with a public or private entity, for 
        economic development purposes; or
            (B) convey the property to an appropriate public or 
        private entity for use for such purposes.
    (2) The conveyance under subsection (a)(2) shall be subject 
to the condition that Board develop and use the conveyed 
property for educational purposes.
    (c) Reversion.--(1) If the Secretary determines at any time 
that the real property conveyed under subsection (a)(1) is not 
being used for economic development purposes, as required by 
subsection (b)(1), all right, title, and interest in and to the 
property conveyed under subsection (a)(1), including any 
improvements thereon, shall revert to the United States, and 
the United States shall have the right of immediate entry 
thereon.
    (2) If the Secretary determines at any time that the real 
property conveyed under subsection (a)(2) is not being used for 
educational purposes, as required by subsection (b)(2), all 
right, title, and interest in and to the property conveyed 
under subsection (a)(2), including any improvements thereon, 
shall revert to the United States, and the United States shall 
have the right of immediate entry thereon.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by surveys satisfactory to 
the Secretary. The cost of the survey in connection with the 
conveyance under subsection (a)(1) shall be borne by the 
Borough, and the cost of the survey in connection with the 
conveyance under subsection (a)(2) shall be borne by the Board.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2836. LAND CONVEYANCES, FORT BRAGG, NORTH CAROLINA.

    (a) Conveyances Authorized.--(1) The Secretary of the Army 
may convey, without consideration, to the Town of Spring Lake, 
North Carolina (in this section referred to as the ``Town''), 
all right, title, and interest of the United States in and to a 
parcel of unimproved real property consisting of approximately 
50 acres located at Fort Bragg, North Carolina.
    (2) The Secretary may convey, without consideration, to 
Harnett County, North Carolina (in this section referred to as 
the ``County''), all right, title, and interest of the United 
States in and to a parcel of real property (including 
improvements thereon), known as Tract No. 404-2, consisting of 
approximately 157 acres located at Fort Bragg.
    (3) The Secretary may convey, at fair market value, to the 
County all right, title, and interest of the United States in 
and to a parcel of real property (including improvements 
thereon), known as Tract No. 404-1, consisting of approximately 
137 acres located at Fort Bragg.
    (b) Conditions of Conveyance.--(1) The conveyance under 
subsection (a)(1) shall be subject to the condition that the 
Town use the conveyed property for access to a waste treatment 
facility and for economic development purposes.
    (2) The conveyance under subsection (a)(2) shall be subject 
to the condition that County develop and use the conveyed 
property for educational purposes.
    (c) Reversion.--(1) If the Secretary determines at any time 
that the real property conveyed under subsection (a)(1) is not 
being used in accordance with subsection (b)(1), all right, 
title, and interest in and to the property conveyed under 
subsection (a)(1), including any improvements thereon, shall 
revert to the United States, and the United States shall have 
the right of immediate entry thereon.
    (2) If the Secretary determines at any time that the real 
property conveyed under subsection (a)(2) is not being used in 
accordance with subsection (b)(2), all right, title, and 
interest in and to the property conveyed under subsection 
(a)(2), including any improvements thereon, shall revert to the 
United States, and the United States shall have the right of 
immediate entry thereon.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by surveys satisfactory to 
the Secretary. The cost of the survey in connection with the 
conveyance under subsection (a)(1) shall be borne by the Town, 
and the cost of the survey in connection with the conveyances 
under paragraphs (2) and (3) of subsection (a) shall be borne 
by the County.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2837. LAND CONVEYANCE, HAWTHORNE ARMY AMMUNITION DEPOT, MINERAL 
                    COUNTY, NEVADA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to Mineral County, Nevada (in 
this section referred to as the ``County''), all right, title, 
and interest of the United States in and to a parcel of excess 
real property, including improvements thereon, consisting of 
approximately 33.1 acres located at Hawthorne Army Ammunition 
Depot, Mineral County, Nevada, and commonly referred to as the 
Schweer Drive Housing Area, for the purpose of permitting the 
County to develop the parcel for economic purposes.
    (b) Conditions of Conveyance.--The conveyance authorized by 
subsection (a) shall be subject to the following conditions:
            (1) That the County accept the conveyed property 
        subject to such easements and rights of way in favor of 
        the United States as the Secretary considers 
        appropriate.
            (2) That the County, if the County sells any 
        portion of the property conveyed under subsection (a) 
        before the end of the 10-year period beginning on the 
        date of enactment of this Act, pay to the United States 
        an amount equal to the lesser of--
                    (A) the amount of sale of the property 
                sold; or
                    (B) the fair market value of the property 
                sold as determined without taking into account 
                any improvements to such property by the 
                County.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a), and of any easement or right of way granted 
under subsection (b)(1), shall be determined by a survey 
satisfactory to the Secretary. The cost of the survey shall be 
borne by the County.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a), and any easement or right 
of way granted under subsection (b)(1), as the Secretary 
considers appropriate to protect the interests of the United 
States.

SEC. 2838. EXPANSION OF LAND CONVEYANCE AUTHORITY, INDIANA ARMY 
                    AMMUNITION PLANT, CHARLESTOWN, INDIANA.

    (a) Additional Conveyance.--Subsection (a) of section 2858 
of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 571) is amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        the Army''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The Secretary may also convey to the State, without 
consideration, an additional parcel of real property at the 
Indiana Army Ammunition Plant consisting of approximately 500 
acres located along the Ohio River.''.
    (b) Conforming Amendments.--Such section is further amended 
by striking out ``conveyance'' both places it appears in 
subsections (b) and (d) and inserting in lieu thereof 
``conveyances''.

SEC. 2839. MODIFICATION OF LAND CONVEYANCE, LOMPOC, CALIFORNIA.

    (a) Change in Authorized Uses of Land.--Section 834(b)(1) 
of the Military Construction Authorization Act, 1985 (Public 
Law 98-407; 98 Stat. 1526), is amended by striking out 
subparagraphs (A) and (B) and inserting in lieu thereof the 
following new subparagraphs:
            ``(A) for educational and recreational purposes;
            ``(B) for open space; or''.
    (b) Conforming Deed Changes.--With respect to the land 
conveyance made pursuant to section 834 of the Military 
Construction Authorization Act, 1985, the Secretary of the Army 
shall execute and file in the appropriate office or offices an 
amended deed or other appropriate instrument effectuating the 
changes to the authorized uses of the conveyed property 
resulting from the amendment made by subsection (a).

SEC. 2840. MODIFICATION OF LAND CONVEYANCE, ROCKY MOUNTAIN ARSENAL, 
                    COLORADO.

    Section 5(c)(1) of Public Law 102-402 (106 Stat. 1966; 16 
U.S.C. 668dd note) is amended by striking out the second 
sentence and inserting in lieu thereof the following new 
sentence: ``The Administrator shall convey the transferred 
property to Commerce City, Colorado, for consideration in an 
amount equal to the fair market value of the property (as 
determined jointly by the Administrator and the City).''.

SEC. 2841. CORRECTION OF LAND CONVEYANCE AUTHORITY, ARMY RESERVE 
                    CENTER, ANDERSON, SOUTH CAROLINA.

    (a) Correction of Conveyee.--Subsection (a) of section 2824 
of the Military Construction Authorization Act for Fiscal Year 
1997 (division B of Public Law 104-201; 110 Stat. 2793) is 
amended by striking out ``County of Anderson, South Carolina 
(in this section referred to as the `County')'' and inserting 
in lieu thereof ``Board of Education, Anderson County, South 
Carolina (in this section referred to as the `Board')''.
    (b) Conforming Amendments.--Subsections (b) and (c) of such 
section are each amended by striking out ``the County'' and 
inserting in lieu thereof ``the Board''.

                       PART II--NAVY CONVEYANCES

SEC. 2851. LAND CONVEYANCE, TOPSHAM ANNEX, NAVAL AIR STATION, 
                    BRUNSWICK, MAINE.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey, without consideration, to the Maine School 
Administrative District No. 75, Topsham, Maine (in this section 
referred to as the ``District''), all right, title, and 
interest of the United States in and to a parcel of real 
property, including improvements thereon, consisting of 
approximately 40 acres located at the Topsham Annex, Naval Air 
Station, Brunswick, Maine.
    (b) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that the 
District use the conveyed property for educational purposes.
    (c) Reversion.--If the Secretary determines at any time 
that the real property conveyed under subsection (a) is not 
being used for the purpose specified in subsection (b), all 
right, title, and interest in and to the property, including 
any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry 
thereon.
    (d) Interim Lease.--(1) Until such time as the real 
property described in subsection (a) is conveyed by deed, the 
Secretary may lease the property, together with the 
improvements thereon, to the District.
    (2) As consideration for the lease under this subsection, 
the District shall provide such security services for the 
property covered by the lease, and carry out such maintenance 
work with respect to the property, as the Secretary shall 
specify in the lease.
    (e) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the District.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a), and the lease, if any, 
under subsection (d), as the Secretary considers appropriate to 
protect the interests of the United States.

SEC. 2852. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE PLANT NO. 
                    464, OYSTER BAY, NEW YORK.

    (a) Conveyance Authorized.--(1) The Secretary of the Navy 
may convey, without consideration, to the County of Nassau, New 
York (in this section referred to as the ``County''), all 
right, title, and interest of the United States in and to 
parcels of real property consisting of approximately 110 acres 
and comprising the Naval Weapons Industrial Reserve Plant No. 
464, Oyster Bay, New York.
    (2)(A) As part of the conveyance authorized in paragraph 
(1), the Secretary may convey to the County such improvements, 
equipment, fixtures, and other personal property (including 
special tooling equipment and special test equipment) located 
on the parcels as the Secretary determines to be not required 
by the Navy for other purposes.
    (B) The Secretary may permit the County to review and 
inspect the improvements, equipment, fixtures, and other 
personal property located on the parcels for purposes of the 
conveyance authorized by this paragraph.
    (b) Condition of Conveyance.--The conveyance of the parcels 
authorized in subsection (a) shall be subject to the condition 
that the County--
            (1) use the parcels, directly or through an 
        agreement with a public or private entity, for economic 
        redevelopment purposes or such other public purposes as 
        the County determines appropriate; or
            (2) convey the parcels to an appropriate public or 
        private entity for use for such purposes.
    (c) Reversion.--If, during the five-year period beginning 
on the date the Secretary makes the conveyance authorized under 
subsection (a), the Secretary determines that the conveyed real 
property is not being used for a purpose specified in 
subsection (b), all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property.
    (d) Interim Lease.--(1) Until such time as the real 
property described in subsection (a) is conveyed by deed, the 
Secretary may lease the property, together with improvements 
thereon, to the County.
    (2) As consideration for the lease under this subsection, 
the County shall provide such security services and fire 
protection services for the property covered by the lease, and 
carry out such maintenance work with respect to the property, 
as the Secretary shall specify in the lease.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
County.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a), and the lease, if any, 
under subsection (d), as the Secretary considers appropriate to 
protect the interests of the United States.

SEC. 2853. CORRECTION OF LEASE AUTHORITY, NAVAL AIR STATION, MERIDIAN, 
                    MISSISSIPPI.

    (a) Correction of Lessee.--Subsection (a) of section 2837 
of the Military Construction Authorization Act for Fiscal Year 
1997 (division B of Public Law 104-201; 110 Stat. 2798) is 
amended--
            (1) by striking out ``State of Mississippi (in this 
        section referred to as the `State')'' and inserting in 
        lieu thereof ``County of Lauderdale, Mississippi (in 
        this section referred to as the `County')''; and
            (2) by striking out ``The State'' and inserting in 
        lieu thereof ``The County''.
    (b) Conforming Amendments.--Subsections (b) and (c) of such 
section are amended by striking out ``State'' each place it 
appears and inserting in lieu thereof ``County''.

                    PART III--AIR FORCE CONVEYANCES

SEC. 2861. LAND TRANSFER, EGLIN AIR FORCE BASE, FLORIDA.

    (a) Transfer.--The real property withdrawn by Executive 
Order 4525, dated October 1, 1826, which consists of 
approximately 440 acres of land at Cape San Blas, Gulf County, 
Florida, and any improvements thereon, is transferred from the 
administrative jurisdiction of the Secretary of Transportation 
to the administrative jurisdiction of the Secretary of the Air 
Force, without reimbursement. Executive Order 4525 is revoked, 
and the transferred real property shall be administered by the 
Secretary of the Air Force pursuant to the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and 
such other laws as may be applicable to Federal real property.
    (b) Use of Property.--The real property transferred under 
subsection (a) may be used in conjunction with operations at 
Eglin Air Force Base, Florida.
    (c) Legal Description.--The exact acreage and legal 
description of the real property to be transferred under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary of the Air Force. The cost of the survey shall be 
borne by the Secretary of the Air Force.

SEC. 2862. LAND CONVEYANCE, MARCH AIR FORCE BASE, CALIFORNIA.

    (a) Conveyance Authorized.--(1) The Secretary of the Air 
Force may convey to Air Force Village West, Incorporated (in 
this section referred to as the ``Corporation''), of Riverside, 
California, all right, title, and interest of the United States 
in and to a parcel of real property located at March Air Force 
Base, California, and consisting of approximately 75 acres, as 
more fully described in subsection (c).
    (2) If the Secretary does not make the conveyance 
authorized by paragraph (1) to the Corporation on or before 
January 1, 2006, the Secretary shall convey the real property 
instead to the March Joint Powers Authority, the redevelopment 
authority established for March Air Force Base.
    (b) Consideration.--As consideration for the conveyance 
under subsection (a)(1), the Corporation shall pay to the 
United States an amount equal to the fair market value of the 
real property, as determined by the Secretary.
    (c) Land Description.--The real property to be conveyed 
under subsection (a) is contiguous to land conveyed to the 
Corporation pursuant to section 835 of the Military 
Construction Authorization Act, 1985 (Public Law 98-407; 98 
Stat. 1527), and lies within sections 27, 28, 33, and 34 of 
Township 3 South, Range 4 West, San Bernardino Base and 
Meridian, County of Riverside, California. The exact acreage 
and legal description of the real property shall be determined 
by a survey satisfactory to the Secretary. The cost of the 
survey shall be borne by the party receiving the property.
    (d) Technical Corrections Regarding Previous Conveyance.--
Section 835 of the Military Construction Authorization Act, 
1985 (Public Law 98-407; 98 Stat. 1527), is amended--
            (1) in subsection (b), by striking out ``subsection 
        (b)'' and inserting in lieu thereof ``subsection (a)''; 
        and
            (2) in subsection (c), by striking out ``Clark 
        Street,'' and all that follows through the period and 
        inserting in lieu thereof ``Village West Drive, on the 
        west by Allen Avenue, on the south by 8th Street, and 
        the north is an extension of 11th Street between Allen 
        Avenue and Clark Street.''.

SEC. 2863. LAND CONVEYANCE, ELLSWORTH AIR FORCE BASE, SOUTH DAKOTA.

    (a) Conveyance Authorized.--The Secretary of the Air Force 
may convey, without consideration, to the Greater Box Elder 
Area Economic Development Corporation, Box Elder, South Dakota 
(in this section referred to as the ``Corporation''), all 
right, title, and interest of the United States in and to the 
parcels of real property located at Ellsworth Air Force Base, 
South Dakota, referred to in subsection (b).
    (b) Covered Property.--(1) Subject to paragraph (2), the 
real property referred to in subsection (a) is the following:
            (A) A parcel of real property, together with any 
        improvements thereon, consisting of approximately 53.32 
        acres and comprising the Skyway Military Family Housing 
        Area.
            (B) A parcel of real property, together with any 
        improvements thereon, consisting of approximately 
        137.56 acres and comprising the Renal Heights Military 
        Family Housing Area.
            (C) A parcel of real property, together with any 
        improvements thereon, consisting of approximately 14.92 
        acres and comprising the East Nike Military Family 
        Housing Area.
            (D) A parcel of real property, together with any 
        improvements thereon, consisting of approximately 14.69 
        acres and comprising the South Nike Military Family 
        Housing Area.
            (E) A parcel of real property, together with any 
        improvements thereon, consisting of approximately 14.85 
        acres and comprising the West Nike Military Family 
        Housing Area.
    (2) The real property referred to in subsection (a) does 
not include the portion of real property referred to in 
paragraph (1)(B) that the Secretary determines to be required 
for the construction of an access road between the main gate of 
Ellsworth Air Force Base and an interchange on Interstate Route 
90 located in the vicinity of mile marker 67 in South Dakota.
    (c) Conditions of Conveyance.--The conveyance of the real 
property referred to in subsection (b) shall be subject to the 
following conditions:
            (1) That the Corporation, and any person or entity 
        to which the Corporation transfers the property, comply 
        in the use of the property with the applicable 
        provisions of the Ellsworth Air Force Base Air 
        Installation Compatible Use Zone Study.
            (2) That the Corporation convey a portion of the 
        real property referred to in subsection (b)(1)(A), 
        together with any improvements thereon, consisting of 
        approximately 20 acres to the Douglas School District, 
        South Dakota, for use for education purposes.
    (d) Reversion.--If the Secretary determines that any 
portion of the real property conveyed under subsection (a) is 
not being used in accordance with the applicable provision of 
subsection (c), all right, title, and interest in and to that 
portion of the real property (including any improvements 
thereon, shall revert to the United States, and the United 
States shall have the right of immediate entry thereon.
    (e) Legal Description.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the Corporation.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2864. LAND CONVEYANCE, HANCOCK FIELD, SYRACUSE, NEW YORK.

    (a) Conveyance Authorized.--(1) The Secretary of the Air 
Force may convey, without consideration, to Onondaga County, 
New York (in this section referred to as the ``County''), all 
right, title, and interest of the United States in and to a 
parcel of real property, including any improvements thereon, 
consisting of approximately 14.9 acres and located at Hancock 
Field, Syracuse, New York, the site of facilities no longer 
required for use by the 152nd Air Control Group of the New York 
Air National Guard.
    (2) If, at the time of the conveyance authorized by 
paragraph (1), the property to be conveyed is under the 
jurisdiction of the Administrator of General Services rather 
than the Secretary, the Administrator shall make the 
conveyance.
    (b) Condition of Conveyance.--The conveyance authorized by 
subsection (a) shall be subject to the condition that the 
County use the property conveyed for economic development 
purposes.
    (c) Reversion.--If the Secretary (or the Administrator in 
the event the conveyance is made by the Administrator) 
determines at any time that the property conveyed pursuant to 
this section is not being used for the purposes specified in 
subsection (b), all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry thereon.
    (d) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary 
(or the Administrator in the event the conveyance is made by 
the Administrator). The cost of the survey shall be borne by 
the County.
    (e) Additional Terms and Conditions.--The Secretary (or the 
Administrator in the event the conveyance is made by the 
Administrator) may require such additional terms and conditions 
in connection with the conveyance under subsection (a) as the 
Secretary or the Administrator, as the case may be, considers 
appropriate to protect the interests of the United States.

SEC. 2865. LAND CONVEYANCE, HAVRE AIR FORCE STATION, MONTANA, AND HAVRE 
                    TRAINING SITE, MONTANA.

    (a) Conveyance Authorized.--(1) The Secretary of the Air 
Force may convey, without consideration, to the Bear Paw 
Development Corporation, Havre, Montana (in this section 
referred to as the ``Corporation''), all, right, title, and 
interest of the United States in and to the real property 
described in paragraph (2).
    (2) The authority in paragraph (1) applies to the following 
real property:
            (A) A parcel of real property, including any 
        improvements thereon, consisting of approximately 85 
        acres and comprising the Havre Air Force Station, 
        Montana.
            (B) A parcel of real property, including any 
        improvements thereon, consisting of approximately 9 
        acres and comprising the Havre Training Site, Montana.
    (b) Conditions of Conveyance.--The conveyance authorized by 
subsection (a) shall be subject to the following conditions:
            (1) That the Corporation--
                    (A) convey to the Box Elder School District 
                13G, Montana, 10 single-family homes located on 
                the property to be conveyed under that 
                subsection as jointly agreed upon by the 
                Corporation and the school district; and
                    (B) grant the school district access to the 
                property for purposes of removing the homes 
                from the property.
            (2) That the Corporation--
                    (A) convey to the Hays/Lodgepole School 
                District 50, Montana--
                            (i) 27 single-family homes located 
                        on the property to be conveyed under 
                        that subsection as jointly agreed upon 
                        by the Corporation and the school 
                        district;
                            (ii) one barracks housing unit 
                        located on the property;
                            (iii) two steel buildings (nos. 7 
                        and 8) located on the property;
                            (iv) two tin buildings (nos. 37 and 
                        44) located on the property; and
                            (v) miscellaneous personal property 
                        located on the property that is 
                        associated with the buildings conveyed 
                        under this subparagraph; and
                    (B) grant the school district access to the 
                property for purposes of removing such homes 
                and buildings, the housing unit, and such 
                personal property from the property.
            (3) That the Corporation--
                    (A) convey to the District 4 Human 
                Resources Development Council, Montana, eight 
                single-family homes located on the property to 
                be conveyed under that subsection as jointly 
                agreed upon by the Corporation and the council; 
                and
                    (B) grant the council access to the 
                property for purposes of removing such homes 
                from the property.
            (4) That any property conveyed under subsection (a) 
        that is not conveyed under this subsection be used for 
        economic development purposes or housing purposes.
    (c) Reversion.--If the Secretary determines at any time 
that the portion of the property conveyed under subsection (a) 
which is covered by the condition specified in subsection 
(b)(4) is not being used for the purposes specified in that 
subsection, all right, title, and interest in and to such 
property, including any improvements thereon, shall revert to 
the United States,and the United States shall have the right of 
immediate entry thereon.
    (d) Description of Property.--The exact acreages and legal 
description of the parcels of property to be conveyed under 
subsection (a) shall be determined by surveys satisfactory to 
the Secretary. The cost of the surveys shall be borne by the 
Corporation.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2866. LAND CONVEYANCE, CHARLESTON FAMILY HOUSING COMPLEX, BANGOR, 
                    MAINE.

    (a) Conveyance Authorized.--The Secretary of the Air Force 
may convey, without consideration, to the City of Bangor, Maine 
(in this section referred to as the ``City''), all right, 
title, and interest of the United States in and to a parcel of 
real property consisting of approximately 19.8 acres, including 
improvements thereon, located in Bangor, Maine, and known as 
the Charleston Family Housing Complex.
    (b) Purpose of Conveyance.--The purpose of the conveyance 
under subsection (a) is to facilitate the reuse of the real 
property, currently unoccupied, which the City proposes to use 
to provide housing opportunities for first-time home buyers.
    (c) Condition of Conveyance.--The conveyance authorized by 
subsection (a) shall be subject to the condition that the City, 
if the City sells any portion of the property conveyed under 
subsection (a) before the end of the 10-year period beginning 
on the date of enactment of this Act, pay to the United States 
an amount equal to the lesser of--
            (1) the amount of sale of the property sold; or
            (2) the fair market value of the property sold as 
        determined without taking into account any improvements 
        to such property by the City.
    (d) Description of Property.--The exact acreage and legal 
description of the real property conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the City.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2867. STUDY OF LAND EXCHANGE OPTIONS, SHAW AIR FORCE BASE, SOUTH 
                    CAROLINA.

    Section 2874 of the Military Construction Authorization Act 
for Fiscal Year 1996 (division B of Public Law 104-106; 110 
Stat. 583) is amended by adding at the end the following new 
subsection:
    ``(g) Study of Exchange Options.--To facilitate the use of 
a land exchange to acquire the real property described in 
subsection (a), the Secretary shall conduct a study to identify 
real property in the possession of the Air Force (located in 
the State of South Carolina or elsewhere) that satisfies the 
requirements of subsection (b)(2), is acceptable to the party 
holding the property to be acquired, and is otherwise suitable 
for exchange under this section. Not later than three months 
after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1998, the Secretary shall 
submit to Congress a report containing the results of the 
study.''.

                       Subtitle E--Other Matters

SEC. 2871. REPEAL OF REQUIREMENT TO OPERATE NAVAL ACADEMY DAIRY FARM.

    (a) Operation.--(1) Chapter 603 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 6976. Operation of Naval Academy dairy farm

    ``(a) Discretion Regarding Continued Operation.--(1) 
Subject to paragraph (2), the Secretary of the Navy may 
terminate or reduce the dairy or other operations conducted at 
the Naval Academy dairy farm located in Gambrills, Maryland.
    ``(2) Notwithstanding the termination or reduction of 
operations at the Naval Academy dairy farm under paragraph(1), 
the real property containing the dairy farm (consisting of 
approximately 875 acres)--
            ``(A) may not be declared to be excess real 
        property to the needs of the Navy or transferred or 
        otherwise disposed of by the Navy or any Federal 
        agency; and
            ``(B) shall be maintained in its rural and 
        agricultural nature.
    ``(b) Lease Authority.--(1) Subject to paragraph (2), to 
the extent that the termination or reduction of operations at 
the Naval Academy dairy farm permit, the Secretary of the Navy 
may lease the real property containing the dairy farm, and any 
improvements and personal property thereon, to such persons and 
under such terms as the Secretary considers appropriate. In 
leasing any of the property, the Secretary may give a 
preference to persons who will continue dairy operations on the 
property.
    ``(2) Any lease of property at the Naval Academy dairy farm 
shall be subject to a condition that the lessee maintain the 
rural and agricultural nature of the leased property.
    ``(c) Effect of Other Laws.--Nothing in section 6971 of 
this title shall be construed to require the Secretary of the 
Navy or the Superintendent of the Naval Academy to operate a 
dairy farm for the Naval Academy in Gambrills, Maryland, or any 
other location.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``6976. Operation of Naval Academy dairy farm.''.

    (b) Conforming Repeal of Existing Requirements.--Section 
810 of the Military Construction Authorization Act, 1968 
(Public Law 90-110; 81 Stat. 309), is repealed.
    (c) Other Conforming Amendments.--(1) Section 6971(b)(5) of 
title 10, United States Code, is amended by inserting ``(if 
any)'' before the period at the end.
    (2) Section 2105(b) of title 5, United States Code, is 
amended by inserting ``(if any)'' after ``Academy dairy''.

SEC. 2872. LONG-TERM LEASE OF PROPERTY, NAPLES, ITALY.

    (a) Authority.--Subject to subsection (d), the Secretary of 
the Navy may acquire by long-term lease structures and real 
property relating to a regional hospital complex in Naples, 
Italy, that the Secretary determines to be necessary for 
purposes of the Naples Improvement Initiative.
    (b) Lease Term.--Notwithstanding section 2675 of title 10, 
United States Code, the lease authorized by subsection (a) 
shall be for a term of not more than 20 years.
    (c) Expiration of Authority.--The authority of the 
Secretary to enter into a lease under subsection (a) shall 
expire on September 30, 2002.
    (d) Authority Contingent on Appropriations Acts.--The 
authority of the Secretary to enter into a lease under 
subsection (a) is available only to the extent or in the amount 
provided in advance in appropriations Acts.

SEC. 2873. DESIGNATION OF MILITARY FAMILY HOUSING AT LACKLAND AIR FORCE 
                    BASE, TEXAS, IN HONOR OF FRANK TEJEDA, A FORMER 
                    MEMBER OF THE HOUSE OF REPRESENTATIVES.

    The military family housing developments to be constructed 
at two locations on Government property at Lackland Air Force 
Base, Texas, under the authority of subchapter IV of chapter 
169 of title 10, United States Code, shall be designated by the 
Secretary of the Air Force, at an appropriate time, as follows:
            (1) The eastern development shall be designated as 
        ``Frank Tejeda Estates East''.
            (2) The western development shall be designated as 
        ``Frank Tejeda Estates West''.

SEC. 2874. FIBER-OPTICS BASED TELECOMMUNICATIONS LINKAGE OF MILITARY 
                    INSTALLATIONS.

    (a) Installation Required.--In at least one metropolitan 
area of the United States containing multiple military 
installations of one or more military departments or Defense 
Agencies, the Secretary of Defense shall provide for the 
installation of fiber-optics based telecommunications 
technology to link as many of the installations in the area as 
practicable in a telecommunications network. The Secretary 
shall use a full and open competitive process, consistent with 
section 2304 of title 10, United States Code, to provide for 
the installation of the telecommunications network through one 
or more new contracts.
    (b) Features of Network.--The telecommunications network 
shall provide direct access to local and long distance 
telephone carriers, allow for transmission of both classified 
and unclassified information, and take advantage of the various 
capabilities of fiber-optics based telecommunications 
technology.
    (c) Time for Request for Bids or Proposals.--Not later than 
March 30, 1998, the Secretary of Defense shall release a final 
request for bids or proposals to provide the telecommunications 
network or networks described in subsection (a).
    (d) Report on Implementation.--Not later than December 31, 
1998, the Secretary of Defense shall submit to the 
congressional defense committees a report on the implementation 
of subsection (c), including the metropolitan area or areas 
selected for the installation of a fiber-optics based 
telecommunications network, the current telecommunication costs 
for the Department of Defense in the selected area or areas, 
the estimated cost of the fiber-optics based network, and 
potential areas for the future use of fiber-optics based 
networks.



                    TITLE XXIX--SIKES ACT IMPROVEMENT



Sec. 2901. Short title.
Sec. 2902. Definition of Sikes Act for purposes of amendments.
Sec. 2903. Codification of short title of Act.
Sec. 2904. Preparation of integrated natural resources management plans.
Sec. 2905. Review for preparation of integrated natural resources 
          management plans.
Sec. 2906. Transfer of wildlife conservation fees from closed military 
          installations.
Sec. 2907. Annual reviews and reports.
Sec. 2908. Cooperative agreements.
Sec. 2909. Federal enforcement.
Sec. 2910. Natural resources management services.
Sec. 2911. Definitions.
Sec. 2912. Repeal of superseded provision.
Sec. 2913. Technical amendments.
Sec. 2914. Authorizations of appropriations.

SEC. 2901. SHORT TITLE.

    This title may be cited as the ``Sikes Act Improvement Act 
of 1997''.

SEC. 2902. DEFINITION OF SIKES ACT FOR PURPOSES OF AMENDMENTS.

    In this title, the term ``Sikes Act'' means the Act 
entitled ``An Act to promote effectual planning, development, 
maintenance, and coordination of wildlife, fish, and game 
conservation and rehabilitation in military reservations'', 
approved September 15, 1960 (16 U.S.C. 670a et seq.), commonly 
referred to as the ``Sikes Act''.

SEC. 2903. CODIFICATION OF SHORT TITLE OF ACT.

    The Sikes Act (16 U.S.C. 670a et seq.) is amended by 
inserting before title I the following new section:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Sikes Act'.''.

SEC. 2904. PREPARATION OF INTEGRATED NATURAL RESOURCES MANAGEMENT 
                    PLANS.

    (a) In General.--Section 101 of the Sikes Act (16 U.S.C. 
670a(a)) is amended by striking out subsection (a) and 
inserting in lieu thereof the following new subsection:
    ``(a) Authority of Secretary of Defense.--
            ``(1) Program.--
                    ``(A) In general.--The Secretary of Defense 
                shall carry out a program to provide for the 
                conservation and rehabilitation of natural 
                resources on military installations.
                    ``(B) Integrated natural resources 
                management plan.--To facilitate the program, 
                the Secretary of each military department shall 
                prepare and implement an integrated natural 
                resources management plan for each military 
                installation in the United States under the 
                jurisdiction of the Secretary, unless the 
                Secretary determines that the absence of 
                significant natural resources on a particular 
                installation makes preparation of such a plan 
                inappropriate.
            ``(2) Cooperative preparation.--The Secretary of a 
        military department shall prepare each integrated 
        natural resources management plan for which the 
        Secretary is responsible in cooperation with the 
        Secretary of the Interior, acting through the Director 
        of the United States Fish and Wildlife Service, and the 
        head of each appropriate State fish and wildlife agency 
        for the State in which the military installation 
        concerned is located. Consistent with paragraph (4), 
        the resulting plan for the military installation shall 
        reflect the mutual agreement of the parties concerning 
        conservation, protection, and management of fish and 
        wildlife resources.
            ``(3) Purposes of program.--Consistent with the use 
        of military installations to ensure the preparedness of 
        the Armed Forces, the Secretaries of the military 
        departments shall carry out the program required by 
        this subsection to provide for--
                    ``(A) the conservation and rehabilitation 
                of natural resources on military installations;
                    ``(B) the sustainable multipurpose use of 
                the resources, which shall include hunting, 
                fishing, trapping, and nonconsumptive uses; and
                    ``(C) subject to safety requirements and 
                military security, public access to military 
                installations to facilitate the use.
            ``(4) Effect on other law.--Nothing in this title--
                    ``(A)(i) affects any provision of a Federal 
                law governing the conservation or protection of 
                fish and wildlife resources; or
                    ``(ii) enlarges or diminishes the 
                responsibility and authority of any State for 
                the protection and management of fish and 
                resident wildlife; or
                    ``(B) except as specifically provided in 
                the other provisions of this section and in 
                section 102, authorizes the Secretary of a 
                military department to require a Federal 
                license or permit to hunt, fish, or trap on a 
                military installation.''.
    (b) Conforming Amendments.--Title I of the Sikes Act is 
amended--
            (1) in section 101(b)(4) (16 U.S.C. 670a(b)(4)), by 
        striking out ``cooperative plan'' each place it appears 
        and inserting in lieu thereof ``integrated natural 
        resources management plan'';
            (2) in section 101(c) (16 U.S.C. 670a(c)), in the 
        matter preceding paragraph (1), by striking out ``a 
        cooperative plan'' and inserting in lieu thereof ``an 
        integrated natural resources management plan'';
            (3) in section 101(d) (16 U.S.C. 670a(d)), in the 
        matter preceding paragraph (1), by striking out 
        ``cooperative plans'' and inserting in lieu thereof 
        ``integrated natural resources management plans'';
            (4) in section 101(e) (16 U.S.C. 670a(e)), by 
        striking out ``Cooperative plans'' and inserting in 
        lieu thereof ``Integrated natural resources management 
        plans'';
            (5) in section 102 (16 U.S.C. 670b), by striking 
        out ``a cooperative plan'' and inserting in lieu 
        thereof ``an integrated natural resources management 
        plan'';
            (6) in section 103 (16 U.S.C. 670c), by striking 
        out ``a cooperative plan'' and inserting in lieu 
        thereof ``an integrated natural resources management 
        plan'';
            (7) in section 106(a) (16 U.S.C. 670f(a)), by 
        striking out ``cooperative plans'' and inserting in 
        lieu thereof ``integrated natural resources management 
        plans''; and
            (8) in section 106(c) (16 U.S.C. 670f(c)), by 
        striking out ``cooperative plans'' and inserting in 
        lieu thereof ``integrated natural resources management 
        plans''.
    (c) Required Elements of Plans.--Section 101(b) of the 
Sikes Act (16 U.S.C. 670a(b)) is amended--
            (1) by striking out ``(b) Each cooperative'' and 
        all that follows through the end of paragraph (1) and 
        inserting in lieu thereof the following:
    ``(b) Required Elements of Plans.--Consistent with the use 
of military installations to ensure the preparedness of the 
Armed Forces, each integrated natural resources management plan 
prepared under subsection (a)--
            ``(1) shall, to the extent appropriate and 
        applicable, provide for--
                    ``(A) fish and wildlife management, land 
                management, forest management, and fish- and 
                wildlife-oriented recreation;
                    ``(B) fish and wildlife habitat enhancement 
                or modifications;
                    ``(C) wetland protection, enhancement, and 
                restoration, where necessary for support of 
                fish, wildlife, or plants;
                    ``(D) integration of, and consistency 
                among, the various activities conducted under 
                the plan;
                    ``(E) establishment of specific natural 
                resource management goals and objectives and 
                time frames for proposed action;
                    ``(F) sustainable use by the public of 
                natural resources to the extent that the use is 
                not inconsistent with the needs of fish and 
                wildlife resources;
                    ``(G) public access to the military 
                installation that is necessary or appropriate 
                for the use described in subparagraph (F), 
                subject to requirements necessary to ensure 
                safety and military security;
                    ``(H) enforcement of applicable natural 
                resource laws (including regulations);
                    ``(I) no net loss in the capability of 
                military installation lands to support the 
                military mission of the installation; and
                    ``(J) such other activities as the 
                Secretary of the military department determines 
                appropriate;'';
            (2) in paragraph (2), by adding ``and'' at the end;
            (3) by striking out paragraph (3);
            (4) by redesignating paragraph (4) as paragraph 
        (3); and
            (5) in paragraph (3)(A) (as so redesignated), by 
        striking out ``collect the fees therefor,'' and 
        inserting in lieu thereof ``collect, spend, administer, 
        and account for fees for the permits,''.

SEC. 2905. REVIEW FOR PREPARATION OF INTEGRATED NATURAL RESOURCES 
                    MANAGEMENT PLANS.

    (a) Definitions.--In this section, the terms ``military 
installation'' and ``United States'' have the meanings provided 
in section 100 of the Sikes Act (as added by section 2911).
    (b) Review of Military Installations.--
            (1) Review.--Not later than 270 days after the date 
        of enactment of this Act, the Secretary of each 
        military department shall--
                    (A) review each military installation in 
                the United States that is under the 
                jurisdiction of that Secretary to determine the 
                military installations for which the 
                preparation of an integrated natural resources 
                management plan under section 101 of the Sikes 
                Act (as amended by this title) is appropriate; 
                and
                    (B) submit to the Secretary of Defense a 
                report on the determinations.
            (2) Report to congress.--Not later than one year 
        after the date of enactment of this Act, the Secretary 
        of Defense shall submit to Congress a report on the 
        reviews conducted under paragraph (1). The report shall 
        include--
                    (A) a list of the military installations 
                reviewed under paragraph (1) for which the 
                Secretary of the appropriate military 
                department determines that the preparation of 
                an integrated natural resources management plan 
                is not appropriate; and
                    (B) for each of the military installations 
                listed under subparagraph (A), an explanation 
                of each reason such a plan is not appropriate.
    (c) Deadline for Integrated Natural Resources Management 
Plans.--Not later than three years after the date of the 
submission of the report required under subsection (b)(2), the 
Secretary of each military department shall, for each military 
installation with respect to which the Secretary has not 
determined under subsection (b)(2)(A) that preparation of an 
integrated natural resources management plan is not 
appropriate--
            (1) prepare and begin implementing such a plan in 
        accordance with section 101(a) of the Sikes Act (as 
        amended by this title); or
            (2) in the case of a military installation for 
        which there is in effect a cooperative plan under 
        section 101(a) of the Sikes Act on the day before the 
        date of enactment of this Act, complete negotiations 
        with the Secretary of the Interior and the heads of the 
        appropriate State agencies regarding changes to the 
        plan that are necessary for the plan to constitute an 
        integrated natural resources management plan that 
        complies with that section, as amended by this title.
    (d) Public Comment.--The Secretary of each military 
department shall provide an opportunity for the submission of 
public comments on--
            (1) integrated natural resources management plans 
        proposed under subsection (c)(1); and
            (2) changes to cooperative plans proposed under 
        subsection (c)(2).

SEC. 2906. TRANSFER OF WILDLIFE CONSERVATION FEES FROM CLOSED MILITARY 
                    INSTALLATIONS.

    Section 101(b)(3)(B) of the Sikes Act (16 U.S.C. 670a(b)) 
(as redesignated by section 2904(c)(4)) is amended by inserting 
before the period at the end the following: ``, unless the 
military installation is subsequently closed, in which case the 
fees may be transferred to another military installation to be 
used for the same purposes''.

SEC. 2907. ANNUAL REVIEWS AND REPORTS.

    Section 101 of the Sikes Act (16 U.S.C. 670a) is amended by 
adding at the end the following new subsection:
    ``(f) Reviews and Reports.--
            ``(1) Secretary of defense.--Not later than March 1 
        of each year, the Secretary of Defense shall review the 
        extent to which integrated natural resources management 
        plans were prepared or were in effect and implemented 
        in accordance with this title in the preceding year, 
        and submit a report on the findings of the review to 
        the committees. Each report shall include--
                    ``(A) the number of integrated natural 
                resources management plans in effect in the 
                year covered by the report, including the date 
                on which each plan was issued in final form or 
                most recently revised;
                    ``(B) the amounts expended on conservation 
                activities conducted pursuant to the plans in 
                the year covered by the report; and
                    ``(C) an assessment of the extent to which 
                the plans comply with this title.
            ``(2) Secretary of the interior.--Not later than 
        March 1 of each year and in consultation with the heads 
        of State fish and wildlife agencies, the Secretary of 
        the Interior shall submit a report to the committees on 
        the amounts expended by the Department of the Interior 
        and the State fish and wildlife agencies in the year 
        covered by the report on conservation activities 
        conducted pursuant to integrated natural resources 
        management plans.
            ``(3) Definition of committees.--In this 
        subsection, the term `committees' means--
                    ``(A) the Committee on Resources and the 
                Committee on National Security of the House of 
                Representatives; and
                    ``(B) the Committee on Armed Services and 
                the Committee on Environment and Public Works 
                of the Senate.''.

SEC. 2908 COOPERATIVE AGREEMENTS.

    Section 103a of the Sikes Act (16 U.S.C. 670c-1) is 
amended--
            (1) in subsection (a), by striking out ``Secretary 
        of Defense'' and inserting in lieu thereof ``Secretary 
        of a military department'';
            (2) by striking out subsection (b) and inserting in 
        lieu thereof the following new subsection:
    ``(b) Multiyear Agreements.--Funds appropriated to the 
Department of Defense for a fiscal year may be obligated to 
cover the cost of goods and services provided under a 
cooperative agreement entered into under subsection (a) or 
through an agency agreement under section 1535 of title 31, 
United States Code, during any 18-month period beginning in 
that fiscal year, without regard to whether the agreement 
crosses fiscal years.''.

SEC. 2909. FEDERAL ENFORCEMENT.

    Title I of the Sikes Act is amended--
            (1) by redesignating section 106 (16 U.S.C. 670f) 
        as section 108; and
            (2) by inserting after section 105 (16 U.S.C. 670e) 
        the following new section:

``SEC. 106. FEDERAL ENFORCEMENT OF OTHER LAWS.

    ``All Federal laws relating to the management of natural 
resources on Federal land may be enforced by the Secretary of 
Defense with respect to violations of the laws that occur on 
military installations within the United States.''.

SEC. 2910. NATURAL RESOURCES MANAGEMENT SERVICES.

    Title I of the Sikes Act is amended by inserting after 
section 106 (as added by section 2909) the following new 
section:

``SEC. 107. NATURAL RESOURCES MANAGEMENT SERVICES.

    ``To the extent practicable using available resources, the 
Secretary of each military department shall ensure that 
sufficient numbers of professionally trained natural resources 
management personnel and natural resources law enforcement 
personnel are available and assigned responsibility to perform 
tasks necessary to carry out this title, including the 
preparation and implementation of integrated natural resources 
management plans.''.

SEC. 2911. DEFINITIONS.

    Title I of the Sikes Act is amended by inserting before 
section 101 (16 U.S.C. 670a) the following new section:

``SEC. 100. DEFINITIONS.

    ``In this title:
            ``(1) Military installation.--The term `military 
        installation'--
                    ``(A) means any land or interest in land 
                owned by the United States and administered by 
                the Secretary of Defense or the Secretary of a 
                military department, except land under the 
                jurisdiction of the Assistant Secretary of the 
                Army having responsibility for civil works;
                    ``(B) includes all public lands withdrawn 
                from all forms of appropriation under public 
                land laws and reserved for use by the Secretary 
                of Defense or the Secretary of a military 
                department; and
                    ``(C) does not include any land described 
                in subparagraph (A) or (B) that is subject to 
                an approved recommendation for closure under 
                the Defense Base Closure and Realignment Act of 
                1990 (part A of title XXIX of Public Law 101-
                510; 10 U.S.C. 2687 note).
            ``(2) State fish and wildlife agency.--The term 
        `State fish and wildlife agency' means the one or more 
        agencies of State government that are responsible under 
        State law for managing fish or wildlife resources.
            ``(3) United states.--The term `United States' 
        means the States, the District of Columbia, and the 
        territories and possessions of the United States.''.

SEC. 2912. REPEAL OF SUPERSEDED PROVISION.

    Section 2 of the Act of October 27, 1986 (Public Law 99-
561; 16 U.S.C. 670a-1), is repealed.

SEC. 2913. TECHNICAL AMENDMENTS.

    Title I of the Sikes Act, as amended by this title, is 
amended--
            (1) in the heading for the title, by striking out 
        ``MILITARY RESERVATIONS'' and inserting in lieu thereof 
        ``MILITARY INSTALLATIONS'';
            (2) in section 101(b)(3) (16 U.S.C. 670a(b)(3)), as 
        redesignated by section 2904(c)(4)--
                    (A) in subparagraph (A), by striking out 
                ``the reservation'' and inserting in lieu 
                thereof ``the installation''; and
                    (B) in subparagraph (B), by striking out 
                ``the military reservation'' and inserting in 
                lieu thereof ``the military installation'';
            (3) in section 101(c) (16 U.S.C. 670a(c))--
                    (A) in paragraph (1), by striking out ``a 
                military reservation'' and inserting in lieu 
                thereof ``a military installation''; and
                    (B) in paragraph (2), by striking out ``the 
                reservation'' and inserting in lieu thereof 
                ``the installation'';
            (4) in section 101(e) (16 U.S.C. 670a(e)), by 
        striking ``the Federal Grant and Cooperative Agreement 
        Act of 1977 (41 U.S.C. 501 et seq.)'' and inserting 
        ``chapter 63 of title 31, United States Code'';
            (5) in section 102 (16 U.S.C. 670b), by striking 
        out ``military reservations'' and inserting in lieu 
        thereof ``military installations''; and
            (6) in section 103 (16 U.S.C. 670c)--
                    (A) by striking out ``military 
                reservations'' and inserting in lieu thereof 
                ``military installations''; and
                    (B) by striking out ``such reservations'' 
                and inserting in lieu thereof ``the 
                installations''.

SEC. 2914. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Conservation Programs on Military Installations.--
Subsections (b) and (c) of section 108 of the Sikes Act (as 
redesignated by section 2909(1)) are each amended by striking 
out ``1983'' and all that follows through ``1993,'' and 
inserting in lieu thereof ``1998 through 2003,''.
    (b) Conservation Programs on Public Lands.--Section 209 of 
the Sikes Act (16 U.S.C. 670o) is amended--
            (1) in subsection (a), by striking out ``the sum of 
        $10,000,000'' and all that follows through ``to enable 
        the Secretary of the Interior'' and inserting in lieu 
        thereof ``$4,000,000 for each of fiscal years 1998 
        through 2003, to enable the Secretary of the 
        Interior''; and
            (2) in subsection (b), by striking out ``the sum of 
        $12,000,000'' and all that follows through ``to enable 
        the Secretary of Agriculture'' and inserting in lieu 
        thereof ``$5,000,000 for each of fiscal years 1998 
        through 2003, to enable the Secretary of Agriculture''.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
          activities.
Sec. 3127. Funds available for all national security programs of the 
          Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Memorandum of understanding for use of national laboratories 
          for ballistic missile defense programs.
Sec. 3132. Defense environmental management privatization projects.
Sec. 3133. International cooperative stockpile stewardship.
Sec. 3134. Modernization of enduring nuclear weapons complex.
Sec. 3135. Tritium production.
Sec. 3136. Processing, treatment, and disposition of spent nuclear fuel 
          rods and other legacy nuclear materials at the Savannah River 
          Site.
Sec. 3137. Limitations on use of funds for laboratory directed research 
          and development purposes.
Sec. 3138. Pilot program relating to use of proceeds of disposal or 
          utilization of certain Department of Energy assets.
Sec. 3139. Modification and extension of authority relating to 
          appointment of certain scientific, engineering, and technical 
          personnel.
Sec. 3140. Limitation on use of funds for subcritical nuclear weapons 
          tests.
Sec. 3141. Limitation on use of certain funds until future use plans are 
          submitted.

                        Subtitle D--Other Matters

Sec. 3151. Plan for stewardship, management, and certification of 
          warheads in the nuclear weapons stockpile.
Sec. 3152. Repeal of obsolete reporting requirements.
Sec. 3153. Study and funding relating to implementation of workforce 
          restructuring plans.
Sec. 3154. Report and plan for external oversight of national 
          laboratories.
Sec. 3155. University-based research collaboration program.
Sec. 3156. Stockpile stewardship program.
Sec. 3157. Reports on advanced supercomputer sales to certain foreign 
          nations.
Sec. 3158. Transfers of real property at certain Department of Energy 
          facilities.
Sec. 3159. Requirement to delegate certain authorities to site manager 
          of Hanford Reservation.
Sec. 3160. Submittal of biennial waste management reports.
Sec. 3161. Department of Energy Security Management Board.
Sec. 3162. Submittal of annual report on status of security functions at 
          nuclear weapons facilities.
Sec. 3163. Modification of authority on Commission on Maintaining United 
          States Nuclear Weapons Expertise.
Sec. 3164. Land transfer, Bandelier National Monument.
Sec. 3165. Final settlement of Department of Energy community assistance 
          obligations with respect to Los Alamos National Laboratory, 
          New Mexico.
Sec. 3166. Sense of Congress regarding the Y-12 Plant in Oak Ridge, 
          Tennessee.
Sec. 3167. Support for public education in the vicinity of Los Alamos 
          National Laboratory, New Mexico.
Sec. 3168. Improvements to Greenville Road, Livermore, California.
Sec. 3169. Report on alternative system for availability of funds.
Sec. 3170. Report on remediation under the Formerly Utilized Sites 
          Remedial Action Program.

         Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

    (a) Stockpile Stewardship.--Funds are hereby authorized to 
be appropriated to the Department of Energy for fiscal year 
1998 for stockpile stewardship in carrying out weapons 
activities necessary for national security programs in the 
amount of $1,867,150,000, to be allocated as follows:
            (1) For core stockpile stewardship, $1,387,100,000, 
        to be allocated as follows:
                    (A) For operation and maintenance, 
                $1,288,290,000.
                    (B) For plant projects (including 
                maintenance, restoration, planning, 
                construction, acquisition, modification of 
                facilities, and the continuation of projects 
                authorized in prior years, and land acquisition 
                related thereto), $98,810,000, to be allocated 
                as follows:
                            Project 97-D-102, dual-axis 
                        radiographic hydrotest facility, Los 
                        Alamos National Laboratory, Los Alamos, 
                        New Mexico, $46,300,000.
                            Project 96-D-102, stockpile 
                        stewardship facilities revitalization, 
                        Phase VI, various locations, 
                        $19,810,000.
                            Project 96-D-103, ATLAS, Los Alamos 
                        National Laboratory, Los Alamos, New 
                        Mexico, $13,400,000.
                            Project 96-D-105, contained firing 
                        facility addition, Lawrence Livermore 
                        National Laboratory, Livermore, 
                        California, $19,300,000.
            (2) For inertial fusion, $414,800,000, to be 
        allocated as follows:
                    (A) For operation and maintenance, 
                $217,000,000.
                    (B) For the following plant project 
                (including maintenance, restoration, planning, 
                construction, acquisition, and modification of 
                facilities, and land acquisition related 
                thereto), $197,800,000, to be allocated as 
                follows:
                            Project 96-D-111, national ignition 
                        facility, location to be determined, 
                        $197,800,000.
            (3) For technology transfer and education, 
        $65,250,000, to be allocated as follows:
                    (A) For technology transfer, $56,250,000.
                    (B) For education, $9,000,000.
    (b) Stockpile Management.--Funds are hereby authorized to 
be appropriated to the Department of Energy for fiscal year 
1998 for stockpile management in carrying out weapons 
activities necessary for national security programs in the 
amount of $2,052,150,000, to be allocated as follows:
            (1) For operation and maintenance, $1,891,265,000.
            (2) For plant projects (including maintenance, 
        restoration, planning, construction, acquisition, 
        modification of facilities, and the continuation of 
        projects authorized in prior years, and land 
        acquisition related thereto), $160,885,000, to be 
        allocated as follows:
                    Project 98-D-123, stockpile management 
                restructuring initiative, tritium factory 
                modernization and consolidation, Savannah River 
                Site, Aiken, South Carolina, $11,000,000.
                    Project 98-D-124, stockpile management 
                restructuring initiative, Y-12 Plant 
                consolidation, Oak Ridge, Tennessee, 
                $6,450,000.
                    Project 98-D-125, tritium extraction 
                facility, Savannah River Site, Aiken, South 
                Carolina, $9,650,000.
                    Project 98-D-126, accelerator production of 
                tritium, various locations, $67,865,000.
                    Project 97-D-122, nuclear materials storage 
                facility renovation, Los Alamos National 
                Laboratory, Los Alamos, New Mexico, $9,200,000.
                    Project 97-D-124, steam plant wastewater 
                treatment facility upgrade, Y-12 Plant, Oak 
                Ridge, Tennessee, $1,900,000.
                    Project 96-D-122, sewage treatment quality 
                upgrade (STQU), Pantex Plant, Amarillo, Texas, 
                $6,900,000.
                    Project 96-D-123, retrofit heating, 
                ventilation, and air conditioning and chillers 
                for ozone protection, Y-12 Plant, Oak Ridge, 
                Tennessee, $2,700,000.
                    Project 95-D-102, chemistry and metallurgy 
                research (CMR) upgrades project, Los Alamos 
                National Laboratory, Los Alamos, New Mexico, 
                $5,000,000.
                    Project 95-D-122, sanitary sewer upgrade, 
                Y-12 Plant, Oak Ridge, Tennessee, $12,600,000.
                    Project 94-D-124, hydrogen fluoride supply 
                system, Y-12 Plant, Oak Ridge, Tennessee, 
                $1,400,000.
                    Project 94-D-125, upgrade life safety, 
                Kansas City Plant, Kansas City, Missouri, 
                $2,000,000.
                    Project 93-D-122, life safety upgrades, Y-
                12 Plant, Oak Ridge, Tennessee, $2,100,000.
                    Project 92-D-126, replace emergency 
                notification system, various locations, 
                $3,200,000.
                    Project 88-D-122, facilities capability 
                assurance program, various locations, 
                $18,920,000.
    (c) Program Direction.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 
for program direction in carrying out weapons activities 
necessary for national security programs in the amount of 
$250,000,000.
    (d) Adjustment.--The total amount authorized to be 
appropriated pursuant to this section is the sum of the amounts 
authorized to be appropriated in subsections (a) through (c) 
reduced by $22,608,000.

SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

    (a) Environmental Restoration.--Funds are hereby authorized 
to be appropriated to the Department of Energy for fiscal year 
1998 for environmental restoration in carrying out 
environmental restoration and waste management activities 
necessary for national security programs in the amount of 
$1,010,973,000, of which $388,000,000 shall be allocated to the 
uranium enrichment decontamination and decommissioning fund.
    (b) Defense Environmental Management Closure Projects.--
Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1998 for closure projects 
in carrying out environmental restoration and waste management 
activities necessary for national security programs in the 
amount of $875,000,000, to be allocated as follows:
            Project 98-CLR-1, Rocky Flats Closure Site, Denver, 
        Colorado, $648,400,000.
            Project 98-CLR-2, Fernald Environmental Management 
        Project, Fernald, Ohio, $226,600,000.
    (c) Waste Management.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 
for waste management in carrying out environmental restoration 
and waste management activities necessary for national security 
programs in the amount of $1,571,644,000, to be allocated as 
follows:
            (1) For operation and maintenance, $1,490,876,000.
            (2) For plant projects (including maintenance, 
        restoration, planning, construction, acquisition, 
        modification of facilities, and the continuation of 
        projects authorized in prior years, and land 
        acquisition related thereto), $80,768,000, to be 
        allocated as follows:
                    Project 98-D-401, H-tank farm storm water 
                systems upgrade, Savannah River Site, Aiken, 
                South Carolina, $1,000,000.
                    Project 97-D-402, tank farm restoration and 
                safe operations, Richland, Washington, 
                $13,961,000.
                    Project 96-D-408, waste management 
                upgrades, various locations, $8,200,000.
                    Project 95-D-402, install permanent 
                electrical service, Waste Isolation Pilot 
                Plant, Carlsbad, New Mexico, $176,000.
                    Project 95-D-405, industrial landfill V and 
                construction/demolition landfill VII, Y-12 
                Plant, Oak Ridge, Tennessee, $3,800,000.
                    Project 95-D-407, 219-S secondary 
                containment upgrade, Richland, Washington, 
                $2,500,000.
                    Project 94-D-404, Melton Valley storage 
                tank capacity increase, Oak Ridge National 
                Laboratory, Oak Ridge, Tennessee, $1,219,000.
                    Project 94-D-407, initial tank retrieval 
                systems, Richland, Washington, $15,100,000.
                    Project 93-D-187, high-level waste removal 
                from filled waste tanks, Savannah River Site, 
                Aiken, South Carolina, $17,520,000.
                    Project 92-D-172, hazardous waste treatment 
                and processing facility, Pantex Plant, 
                Amarillo, Texas, $5,000,000.
                    Project 89-D-174, replacement high-level 
                waste evaporator, Savannah River Site, Aiken, 
                South Carolina, $1,042,000.
                    Project 86-D-103, decontamination and waste 
                treatment facility, Lawrence Livermore National 
                Laboratory, Livermore, California, $11,250,000.
    (d) Technology Development.--Funds are hereby authorized to 
be appropriated to the Department of Energy for fiscal year 
1998 for technology development in carrying out environmental 
restoration and waste management activities necessary for 
national security programs in the amount of $220,000,000.
    (e) Nuclear Materials and Facilities Stabilization.--Funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1998 for nuclear materials and 
facilities stabilization in carrying out environmental 
restoration and waste management activities necessary for 
national security programs in the amount of $1,256,821,000, to 
be allocated as follows:
            (1) For operation and maintenance, $1,176,114,000.
            (2) For plant projects (including maintenance, 
        restoration, planning, construction, acquisition, 
        modification of facilities, and the continuation of 
        projects authorized in prior years, and land 
        acquisition related thereto), $80,707,000, to be 
        allocated as follows:
                    Project 98-D-453, plutonium stabilization 
                and handling system for plutonium finishing 
                plant, Richland, Washington, $8,136,000.
                    Project 98-D-700, road rehabilitation, 
                Idaho National Engineering Laboratory, Idaho, 
                $500,000.
                    Project 97-D-450, actinide packaging and 
                storage facility, Savannah River Site, Aiken, 
                South Carolina, $18,000,000.
                    Project 97-D-451, B-Plant safety class 
                ventilation upgrades, Richland, Washington, 
                $2,000,000.
                    Project 97-D-470, environmental monitoring 
                laboratory/health physics site support 
                facility, Savannah River Site, Aiken, South 
                Carolina, $5,600,000.
                    Project 96-D-406, spent nuclear fuels 
                canister storage and stabilization facility, 
                Richland, Washington, $16,744,000.
                    Project 96-D-461, electrical distribution 
                upgrade, Idaho National Engineering Laboratory, 
                Idaho, $2,927,000.
                    Project 96-D-464, electrical and utility 
                systems upgrade, Idaho Chemical Processing 
                Plant, Idaho National Engineering Laboratory, 
                Idaho, $14,985,000.
                    Project 96-D-471, chlorofluorocarbon 
                heating, ventilation, and air conditioning and 
                chiller retrofit, Savannah River Site, Aiken, 
                South Carolina, $8,500,000.
                    Project 95-D-155, upgrade site road 
                infrastructure, Savannah River Site, South 
                Carolina, $2,713,000.
                    Project 95-D-456, security facilities 
                consolidation, Idaho Chemical Processing Plant, 
                Idaho National Engineering Laboratory, Idaho, 
                $602,000.
    (f) Program Direction.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 
for program direction in carrying out environmental restoration 
and waste management activities necessary for national security 
programs in the amount of $345,751,000.
    (g) Policy and Management.--Funds are hereby authorized to 
be appropriated to the Department of Energy for fiscal year 
1998 for policy and management in carrying out environmental 
restoration and waste management activities necessary for 
national security programs in the amount of $20,000,000.
    (h) Environmental Science Program.--Funds are hereby 
authorized to be appropriated to the Department of Energy for 
fiscal year 1998 for the environmental science program in 
carrying out environmental restoration and waste management 
activities necessary for national security programs in the 
amount of $55,000,000.
    (i) Defense Environmental Management Privatization.--Funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1998 for environmental management 
privatization projects in carrying out environmental 
restoration and waste management activities necessary for 
national security programs in the amount of $224,700,000, to be 
allocated as follows:
            Project 98-PVT-1, contact handled transuranic waste 
        transportation, Carlsbad, New Mexico, $21,000,000.
            Project 98-PVT-2, spent nuclear fuel dry storage, 
        Idaho Falls, Idaho, $27,000,000.
            Project 98-PVT-3, waste pits remedial action, 
        Fernald, Ohio, $25,000,000.
            Project 98-PVT-4, spent nuclear fuel transfer and 
        storage, Savannah River, South Carolina, $25,000,000.
            Project 98-PVT-5, waste disposal, Oak Ridge, 
        Tennessee, $5,000,000.
            Project 98-PVT-6, Ohio silo 3 waste treatment, 
        Fernald, Ohio, $6,700,000.
            Project 97-PVT-1, tank waste remediation system 
        phase 1, Hanford, Washington, $115,000,000.
    (j) Adjustment.--The total amount authorized to be 
appropriated pursuant to this section for subsections (a) 
through (h) is the sum of the amounts authorized to be 
appropriated in those subsections reduced by $50,000,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    (a) In General.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1998 
for other defense activities in carrying out programs necessary 
for national security in the amount of $1,642,310,000, to be 
allocated as follows:
            (1) For verification and control technology, 
        $478,200,000, to be allocated as follows:
                    (A) For nonproliferation and verification 
                research and development, $210,000,000.
                    (B) For arms control, $234,600,000.
                    (C) For intelligence, $33,600,000.
            (2) For nuclear safeguards and security, 
        $47,200,000.
            (3) For security investigations, $25,000,000.
            (4) For emergency management, $20,000,000.
            (5) For program direction, $78,900,000.
            (6) For worker and community transition assistance, 
        $61,159,000, to be allocated as follows:
                    (A) For worker and community transition, 
                $57,659,000.
                    (B) For program direction, $3,500,000.
            (7) For fissile materials control and disposition, 
        $103,451,000, to be allocated as follows:
                    (A) For operation and maintenance, 
                $99,451,000.
                    (B) For program direction, $4,000,000.
            (8) For environment, safety, and health, defense, 
        $94,000,000, to be allocated as follows:
                    (A) For the Office of Environment, Safety, 
                and Health (Defense), $74,000,000.
                    (B) For program direction, $20,000,000.
            (9) For the Office of Hearings and Appeals, 
        $1,900,000.
            (10) For nuclear energy, $47,000,000, to be 
        allocated as follows:
                    (A) For nuclear technology research and 
                development (electrometallurgical), 
                $12,000,000.
                    (B) For international nuclear safety 
                (Soviet-designed reactors), $35,000,000.
            (11) For naval reactors development, $670,500,000, 
        to be allocated as follows:
                    (A) For operation and maintenance, 
                $635,920,000.
                    (B) For program direction, $20,080,000.
                    (C) For plant projects (including 
                maintenance, restoration, planning, 
                construction, acquisition, modification of 
                facilities, and the continuation of projects 
                authorized in prior years, and land acquisition 
                related thereto), $14,500,000, to be allocated 
                as follows:
                            Project 98-D-200, site laboratory/
                        facility upgrade, various locations, 
                        $5,700,000.
                            Project 97-D-201, advanced test 
                        reactor secondary coolant 
                        refurbishment, Idaho National 
                        Engineering Laboratory, Idaho, 
                        $4,600,000.
                            Project 95-D-200, laboratory 
                        systems and hot cell upgrades, various 
                        locations, $1,100,000.
                            Project 90-N-102, expended core 
                        facility dry cell project, Naval 
                        Reactors Facility, Idaho, $3,100,000.
            (12) For independent assessment of Department of 
        Energy projects, $15,000,000.
    (b) Adjustment.--The total amount authorized to be 
appropriated pursuant to this section is the sum of the amounts 
authorized to be appropriated in paragraphs (1) through (12) of 
subsection (a) reduced by $6,047,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1998 for payment to the 
Nuclear Waste Fund established in section 302(c) of the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of 
$190,000,000.

                Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

    (a) In General.--Until the Secretary of Energy submits to 
the congressional defense committees the report referred to in 
subsection (b) and a period of 30 days has elapsed after the 
date on which such committees receive the report, the Secretary 
may not use amounts appropriated pursuant to this title for any 
program--
            (1) in amounts that exceed, in a fiscal year--
                    (A) 110 percent of the amount authorized 
                for that program by this title; or
                    (B) $1,000,000 more than the amount 
                authorized for that program by this title; or
            (2) which has not been presented to, or requested 
        of, Congress.
    (b) Report.--(1) The report referred to in subsection (a) 
is a report containing a full and complete statement of the 
action proposed to be taken and the facts and circumstances 
relied upon in support of such proposed action.
    (2) In the computation of the 30-day period under 
subsection (a), there shall be excluded any day on which either 
House of Congress is not in session because of an adjournment 
of more than 3 days to a day certain.
    (c) Limitations.--(1) In no event may the total amount of 
funds obligated pursuant to this title exceed the total amount 
authorized to be appropriated by this title.
    (2) Funds appropriated pursuant to this title may not be 
used for an item for which Congress has specifically denied 
funds.

SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

    (a) In General.--The Secretary of Energy may carry out any 
construction project under the general plant projects 
authorized by this title if the total estimated cost of the 
construction project does not exceed $5,000,000.
    (b) Report to Congress.--If, at any time during the 
construction of any general plant project authorized by this 
title, the estimated cost of the project is revised because of 
unforeseen cost variations and the revised cost of the project 
exceeds $5,000,000, the Secretary shall immediately furnish a 
complete report to the congressional defense committees 
explaining the reasons for the cost variation.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

    (a) In General.--(1) Except as provided in paragraph (2), 
construction on a construction project may not be started or 
additional obligations incurred in connection with the project 
above the total estimated cost, whenever the current estimated 
cost of the construction project, which is authorized by 
section 3101, 3102, or 3103, or which is in support of national 
security programs of the Department of Energy and was 
authorized by any previous Act, exceeds by more than 25 percent 
the higher of--
            (A) the amount authorized for the project; or
            (B) the amount of the total estimated cost for the 
        project as shown in the most recent budget 
        justification data submitted to Congress.
    (2) An action described in paragraph (1) may be taken if--
            (A) the Secretary of Energy has submitted to the 
        congressional defense committees a report on the 
        actions and the circumstances making such action 
        necessary; and
            (B) a period of 30 days has elapsed after the date 
        on which the report is received by the committees.
    (3) In the computation of the 30-day period under paragraph 
(2), there shall be excluded any day on which either House of 
Congress is not in session because of an adjournment of more 
than 3 days to a day certain.
    (b) Exception.--Subsection (a) shall not apply to any 
construction project which has a current estimated cost of less 
than $5,000,000.

SEC. 3124. FUND TRANSFER AUTHORITY.

    (a) Transfer to Other Federal Agencies.--The Secretary of 
Energy may transfer funds authorized to be appropriated to the 
Department of Energy pursuant to this title to other Federal 
agencies for the performance of work for which the funds were 
authorized. Funds so transferred may be merged with and be 
available for the same purposes and for the same period as the 
authorizations of the Federal agency to which the amounts are 
transferred.
    (b) Transfer Within Department of Energy.--(1) Subject to 
paragraph (2), the Secretary of Energy may transfer funds 
authorized to be appropriated to the Department of Energy 
pursuant to this title between any such authorizations. Amounts 
of authorizations so transferred may be merged with and be 
available for the same purposes and for the same period as the 
authorization to which the amounts are transferred.
    (2) Not more than five percent of any such authorization 
may be transferred between authorizations under paragraph (1). 
No such authorization may be increased or decreased by more 
than five percent by a transfer under such paragraph.
    (c) Limitation.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide funds for items 
        relating to activities necessary for national security 
        programs that have a higher priority than the items 
        from which the funds are transferred; and
            (2) may not be used to provide funds for an item 
        for which Congress has specifically denied funds.
    (d) Notice to Congress.--The Secretary of Energy shall 
promptly notify the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives of any transfer of funds to or from 
authorizations under this title.

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

    (a) Requirement for Conceptual Design.--(1) Subject to 
paragraph (2) and except as provided in paragraph (3), before 
submitting to Congress a request for funds for a construction 
project that is in support of a national security program of 
the Department of Energy, the Secretary of Energy shall 
complete a conceptual design for that project.
    (2) If the estimated cost of completing a conceptual design 
for a construction project exceeds $3,000,000, the Secretary 
shall submit to Congress a request for funds for the conceptual 
design before submitting a request for funds for the 
construction project.
    (3) The requirement in paragraph (1) does not apply to a 
request for funds--
            (A) for a construction project the total estimated 
        cost of which is less than $5,000,000; or
            (B) for emergency planning, design, and 
        construction activities under section 3126.
    (b) Authority for Construction Design.--(1) Within the 
amounts authorized by this title, the Secretary of Energy may 
carry out construction design (including architectural and 
engineering services) in connection with any proposed 
construction project if the total estimated cost for such 
design does not exceed $600,000.
    (2) If the total estimated cost for construction design in 
connection with any construction project exceeds $600,000, 
funds for such design must be specifically authorized by law.

SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION 
                    ACTIVITIES.

    (a) Authority.--The Secretary of Energy may use any funds 
available to the Department of Energy pursuant to an 
authorization in this title, including those funds authorized 
to be appropriated for advance planning and construction design 
under sections 3101, 3102, and 3103, to perform planning, 
design, and construction activities for any Department of 
Energy national security program construction project that, as 
determined by the Secretary, must proceed expeditiously in 
order to protect public health and safety, to meet the needs of 
national defense, or to protect property.
    (b) Limitation.--The Secretary may not exercise the 
authority under subsection (a) in the case of any construction 
project until the Secretary has submitted to the congressional 
defense committees a report on the activities that the 
Secretary intends to carry out under this section and the 
circumstances making such activities necessary.
    (c) Specific Authority.--The requirement of section 
3125(b)(2) does not apply to emergency planning, design, and 
construction activities conducted under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE 
                    DEPARTMENT OF ENERGY.

    Subject to the provisions of appropriations Acts and 
section 3121, amounts appropriated pursuant to this title for 
management and support activities and for general plant 
projects are available for use, when necessary, in connection 
with all national security programs of the Department of 
Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

    (a) In General.--Except as provided in subsection (b), when 
so specified in an appropriations Act, amounts appropriated for 
operation and maintenance or for plant projects may remain 
available until expended.
    (b) Exception for Program Direction Funds.--Amounts 
appropriated for program direction pursuant to an authorization 
of appropriations in subtitle A shall remain available to be 
expended only until the end of fiscal year 2000.

SEC. 3129. TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

    (a) Transfer Authority for Defense Environmental Management 
Funds.--The Secretary of Energy shall provide the manager of 
each field office of the Department of Energy with the 
authority to transfer defense environmental management funds 
from a program or project under the jurisdiction of the office 
to another such program or project.
    (b) Limitations.--(1) Only one transfer may be made to or 
from any program or project under subsection (a) in a fiscal 
year.
    (2) The amount transferred to or from a program or project 
under subsection (a) may not exceed $5,000,000 in a fiscal 
year.
    (3) A transfer may not be carried out by a manager of a 
field office under subsection (a) unless the manager determines 
that the transfer is necessary to address a risk to health, 
safety, or the environment or to assure the most efficient use 
of defense environmental management funds at the field office.
    (4) Funds transferred pursuant to subsection (a) may not be 
used for an item for which Congress has specifically denied 
funds or for a new program or project that has not been 
authorized by Congress.
    (c) Exemption From Reprogramming Requirements.--The 
requirements of section 3121 shall not apply to transfers of 
funds pursuant to subsection (a).
    (d) Notification.--The Secretary, acting through the 
Assistant Secretary of Energy for Environmental Management, 
shall notify Congress of any transfer of funds pursuant to 
subsection (a) not later than 30 days after such transfer 
occurs.
    (e) Definitions.--In this section:
            (1) The term ``program or project'' means, with 
        respect to a field office of the Department of Energy, 
        any of the following:
                    (A) A project listed in subsection (c) or 
                (e) of section 3102 being carried out by the 
                office.
                    (B) A program referred to in subsection 
                (a), (c), (d), or (e) of section 3102 being 
                carried out by the office.
                    (C) A project or program not described in 
                subparagraph (A) or (B) that is for 
                environmental restoration or waste management 
                activities necessary for national security 
                programs of the Department, that is being 
                carried out by the office, and for which 
                defense environmental management funds have 
                been authorized and appropriated before the 
                date of enactment of this Act.
            (2) The term ``defense environmental management 
        funds'' means funds appropriated to the Department of 
        Energy pursuant to an authorization for carrying out 
        environmental restoration and waste management 
        activities necessary for national security programs.
    (f) Duration of Authority.--The managers of the field 
offices of the Department may exercise the authority provided 
under subsection (a) during the period beginning on October 1, 
1997, and ending on September 30, 1998.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. MEMORANDUM OF UNDERSTANDING FOR USE OF NATIONAL LABORATORIES 
                    FOR BALLISTIC MISSILE DEFENSE PROGRAMS.

    (a) Memorandum of Understanding.--The Secretary of Energy 
and the Secretary of Defense shall enter into a memorandum of 
understanding for the purpose of improving and facilitating the 
use by the Secretary of Defense of theexpertise of the national 
laboratories for the ballistic missile defense programs of the 
Department of Defense.
    (b) Assistance.--The memorandum of understanding shall 
provide that the Secretary of Defense shall request such 
assistance with respect to the ballistic missile defense 
programs of the Department of Defense as the Secretary of 
Defense and the Secretary of Energy determine can be provided 
through the technical skills and experience of the national 
laboratories, using such financial arrangements as the 
Secretaries determine are appropriate.
    (c) Activities.--The memorandum of understanding shall 
provide that the national laboratories shall carry out those 
activities necessary to respond to requests for assistance from 
the Secretary of Defense referred to in subsection (b). Such 
activities may include the identification of technical 
modifications and test techniques, the analysis of physics 
problems, the consolidation of range and test activities, and 
the analysis and simulation of theater missile defense 
deployment problems.
    (d) National Laboratories.--For purposes of this section, 
the national laboratories are--
            (1) the Lawrence Livermore National Laboratory, 
        Livermore, California;
            (2) the Los Alamos National Laboratory, Los Alamos, 
        New Mexico; and
            (3) the Sandia National Laboratories, Albuquerque, 
        New Mexico.

SEC. 3132. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION PROJECTS.

    (a) Authority To Enter Into Contracts.--The Secretary of 
Energy may, using funds authorized to be appropriated by 
section 3102(i) for a project referred to in that section, 
enter into a contract that--
            (1) is awarded on a competitive basis;
            (2) requires the contractor to construct or acquire 
        any equipment or facilities required to carry out the 
        contract;
            (3) requires the contractor to bear any of the 
        costs of the construction, acquisition, and operation 
        of such equipment or facilities that arise before the 
        commencement of the provision of goods or services 
        under the contract; and
            (4) provides for payment to the contractor under 
        the contract only upon the meeting of performance 
        specifications in the contract.
    (b) Notice and Wait.--(1) The Secretary may not enter into 
a contract under subsection (a), exercise an authorization to 
proceed with such a contract or extend any contract period for 
such a contract by more than one year until 30 days after the 
date on which the Secretary submits to the congressional 
defense committees a report with respect to the contract.
    (2) Except as provided in paragraph (3), a report under 
paragraph (1) with respect to a contract shall set forth--
            (A) the anticipated costs and fees of the 
        Department under the contract, including the 
        anticipated maximum amount of such costs and fees;
            (B) any performance specifications in the contract;
            (C) the anticipated dates of commencement and 
        completion of the provision of goods or services under 
        the contract;
            (D) the allocation between the Department and the 
        contractor of any financial, regulatory, or 
        environmental obligations under the contract;
            (E) any activities planned or anticipated to be 
        required with respect to the project after completion 
        of the contract;
            (F) the site services or other support to be 
        provided the contractor by the Department under the 
        contract;
            (G) the goods or services to be provided by the 
        Department or contractor under the contract, including 
        any additional obligations to be borne by the 
        Department or contractor with respect to such goods or 
        services;
            (H) if the contract provides for financing of the 
        project by an entity or entities other than the United 
        States, a detailed comparison of the costs of financing 
        the project through such entity or entities with the 
        costs of financing the project by the United States;
            (I) the schedule for the contract;
            (J) the costs the Department would otherwise have 
        incurred in obtaining the goods or services covered by 
        the contract if the Department had not proposed to 
        obtain the goods or services under this section;
            (K) an estimate and justification of the cost 
        savings, if any, to be realized through the contract, 
        including the assumptions underlying the estimate;
            (L) the effect of the contract on any ancillary 
        schedules applicable to the facility concerned, 
        including milestones in site compliance agreements; and
            (M) the plans for maintaining financial and 
        programmatic accountability for activities under the 
        contract.
    (3) In the case of a contract under subsection (a) at the 
Hanford Reservation, the report under paragraph (1) shall set 
forth--
            (A) the matters specified in paragraph (2); and
            (B) if the contract contemplates two pilot 
        vitrification plants--
                    (i) an analysis of the basis for the 
                selection of each of the plants in lieu of a 
                single pilot vitrification plant; and
                    (ii) a detailed comparison of the costs to 
                the United States of two pilot plants with the 
                costs to the United States of a single pilot 
                plant.
    (c) Cost Variations.--(1)(A) The Secretary may not enter 
into a contract for a project referred to in subparagraph (B), 
or obligate funds attributable to the capital portion of the 
cost of such a contract, whenever the current estimated cost of 
the project exceeds the amount of the estimated cost of the 
project as shown in the most recent budget justification data 
submitted to Congress.
    (B) Subparagraph (A) applies to the following:
            (i) A project authorized by section 3102(i).
            (ii) A project authorized by section 3103 of the 
        National Defense Authorization Act for Fiscal Year 1997 
        (Public Law 104-201; 110 Stat. 2824) for which a 
        contract has not been entered into as of the date of 
        enactment of this Act.
    (2) The Secretary may not obligate funds attributable to 
the capital portion of the cost of a contract entered into 
before such date for a project authorized by such section 3103 
whenever the current estimated cost of the project equals or 
exceeds 110 percent of the amount of the estimated cost of the 
project as shown in the most recent budget justification data 
submitted to Congress.
    (d) Use of Funds for Termination of Contract.--Not later 
than 15 days before the Secretary obligates funds available for 
a project authorized by section 3102(i) to terminate the 
contract for the project under subsection (a), the Secretary 
shall notify the congressional defense committees of the 
Secretary's intent to obligate the funds for that purpose.
    (e) Annual Report on Contracts.--(1) Not later than 
February 28 of each year, the Secretary shall submit to the 
congressional defense committees a report on the activities, if 
any, carried out under each contract referred to in paragraph 
(2) during the preceding year. The report shall include an 
update with respect to each such contract of the matters 
specified under subsection (b)(1) as of the date of the report.
    (2) A contract referred to in paragraph (1) is the 
following:
            (A) A contract under subsection (a) for a project 
        referred to in that subsection.
            (B) A contract under section 3103 of the National 
        Defense Authorization Act for Fiscal Year 1997.
    (f) Assessment of Contracting Without Sufficient 
Appropriations.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall submit to the 
congressional defense committees a report assessing whether, 
and under what circumstances, the Secretary could enter into 
contracts for defense environmental management privatization 
projects in the absence of sufficient appropriations to meet 
obligations under such contracts without thereby violating the 
provisions of section 1341 of title 31, United States Code.

SEC. 3133. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.

    (a) Funding Prohibition.--No funds authorized to be 
appropriated or otherwise available to the Department of Energy 
for fiscal year 1998 may be obligated or expended to conduct 
any activities associated with international cooperative 
stockpile stewardship.
    (b) Exceptions.--Subsection (a) does not apply to the 
following:
            (1) Activities conducted between the United States 
        and the United Kingdom.
            (2) Activities conducted between the United States 
        and France.
            (3) Activities carried out under title III of this 
        Act relating to cooperative threat reduction with 
        states of the former Soviet Union.

SEC. 3134. MODERNIZATION OF ENDURING NUCLEAR WEAPONS COMPLEX.

    (a) Funding.--Subject to subsection (b), of the funds 
authorized to be appropriated to the Department of Energy 
pursuant to section 3101, $85,000,000 shall be available for 
carrying out the program described in section 3137(a) of the 
National Defense Authorization Act for Fiscal Year 1996 (42 
U.S.C. 2121 note).
    (b) Limitation on Availability.--None of the funds 
available under subsection (a) for carrying out the program 
referred to in that subsection may be obligated or expended 
until 30 days after the date of the receipt by Congress of the 
report required under subsection (c).
    (c) Report on Allocation of Funds.--Not later than 30 days 
after the date of enactment of this Act, the Secretary of 
Energy shall submit to the congressional defense committees a 
report setting forth the proposed allocation among specific 
Department of Energy sites of the funds available under 
subsection (a) for the program referred to in that subsection.

SEC. 3135. TRITIUM PRODUCTION.

    (a) Tritium Production Decision.--(1) Not later than 
December 31, 1998, the Secretary of Energy shall make a final 
decision on the technologies to be utilized, and the schedule 
to be adopted, for tritium production in order to meet the 
requirements in the Nuclear Weapons Stockpile Memorandum 
relating to tritium production, including the tritium 
production date of 2005 specified in the Nuclear Weapons 
Stockpile Memorandum.
    (2) In making the final decision, the Secretary shall take 
into account the following:
            (A) The requirements for tritium production 
        specified in the Nuclear Weapons Stockpile Memorandum, 
        including, in particular, the requirements for the so-
        called ``upload hedge'' component of the nuclear 
        weapons stockpile.
            (B) The activities of the Department of Energy 
        relating to the evaluation and demonstration of 
        technologies under the accelerator program and the 
        commercial light water reactor program.
            (C) The potential liabilities and benefits of each 
        potential technology for tritium production, 
        including--
                    (i) regulatory and other barriers that 
                might prevent the production of tritium using 
                the technology by the production date referred 
                to in paragraph (1);
                    (ii) potential difficulties, if any, in 
                licensing the technology;
                    (iii) the variability, if any, in tritium 
                production rates using the technology; and
                    (iv) any other benefits (including 
                scientific or research benefits or the 
                generation of revenue) associated with the 
                technology.
    (b) Reports on Decision.--(1) Upon making a final decision 
under paragraph (1) of subsection (a), the Secretary shall 
submit to the congressional defense committees a report on the 
final decision. The report shall include an assessment of how 
the selected technology addresses the items taken into account 
under paragraph (2) of that subsection.
    (2) If the Secretary determines that it is not possible to 
make the final decision by the date specified in paragraph (1) 
of subsection (a), the Secretary shall submit to the 
congressional defense committees on that date a report that 
explains in detail why the final decision cannot be made by 
that date.
    (c) Limitation on Availability of Funds.--The Secretary may 
not obligate or expend any funds authorized to be appropriated 
or otherwise made available for the Department of Energy by 
this Act for the purpose of evaluating or utilizing any 
technology for the production of tritium other than a 
commercial light water reactor or an accelerator until the 
later of--
            (1) January 31, 1999; or
            (2) the date that is 30 days after the date on 
        which the Secretary makes a final decision under 
        subsection (a).

SEC. 3136. PROCESSING, TREATMENT, AND DISPOSITION OF SPENT NUCLEAR FUEL 
                    RODS AND OTHER LEGACY NUCLEAR MATERIALS AT THE 
                    SAVANNAH RIVER SITE.

    (a) Funding.--Of the funds authorized to be appropriated 
pursuant to section 3102(e), not more than $47,000,000 shall be 
available for the implementation of a program to accelerate the 
receipt, processing (including the H-canyon restart 
operations), reprocessing, separation, reduction, deactivation, 
stabilization, isolation, and interim storage of high level 
nuclear waste associated with Department of Energy spent fuel 
rods, foreign spent fuel rods, and other nuclear materials that 
are located at the Savannah River Site.
    (b) Requirement for Continuing Operations at Savannah River 
Site.--The Secretary of Energy shall continue operations and 
maintain a high state of readiness at the F-canyon and H-canyon 
facilities at the Savannah River Site and shall provide 
technical staff necessary to operate and maintain such 
facilities at that state of readiness.

SEC. 3137. LIMITATIONS ON USE OF FUNDS FOR LABORATORY DIRECTED RESEARCH 
                    AND DEVELOPMENT PURPOSES.

    (a) General Limitations.--(1) No funds authorized to be 
appropriated or otherwise made available to the Department of 
Energy in any fiscal year after fiscal year 1997 for weapons 
activities may be obligated or expended for activities under 
the Department of Energy Laboratory Directed Research and 
Development Program, or under any Department of Energy 
technology transfer program or cooperative research and 
development agreement, unless such activities support the 
national security mission of the Department of Energy.
    (2) No funds authorized to be appropriated or otherwise 
made available to the Department of Energy in any fiscal year 
after fiscal year 1997 for environmental restoration, waste 
management, or nuclear materials and facilities stabilization 
may be obligated or expended for activities under the 
Department of Energy Laboratory Directed Research and 
Development Program, or under any Department of Energy 
technology transfer program or cooperative research and 
development agreement, unless such activities support the 
environmental restoration mission, waste management mission, or 
materials stabilization mission, as the case may be, of the 
Department of Energy.
    (b) Limitation in Fiscal Year 1998 Pending Submittal of 
Annual Report.--Not more than 30 percent of the funds 
authorized to be appropriated or otherwise made available to 
the Department of Energy in fiscal year 1998 for laboratory 
directed research and development may be obligated or expended 
for such research and development until the Secretary of Energy 
submits to the congressional defense committees the report 
required by section 3136(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2831; 42 U.S.C. 7257b) in 1998.
    (c) Submittal Date for Annual Report on Laboratory Directed 
Research and Development Program.--Paragraph (1) of section 
3136(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2831; 42 U.S.C. 7257b) 
is amended by striking out ``The Secretary of Energy shall 
annually submit'' and inserting in lieu thereof ``Not later 
than February 1 each year, the Secretary of Energy shall 
submit''.
    (d) Assessment of Funding Level for Laboratory Directed 
Research and Development.--The Secretary shall include in the 
report submitted under such section 3136(b)(1) in 1998 an 
assessment of the funding required to carry out laboratory 
directed research and development, including a recommendation 
for the percentage of the funds provided to Government-owned, 
contractor-operated laboratories for national security 
activities that should be made available for such research and 
development under section 3132(c) of the National Defense 
Authorization Act for Fiscal Year 1991 (42 U.S.C. 7257a(c)).
    (e) Definition.--In this section, the term ``laboratory 
directed research and development'' has the meaning given that 
term in section 3132(d) of the National Defense Authorization 
Act for Fiscal Year 1991 (42 U.S.C. 7257a(d)).

SEC. 3138. PILOT PROGRAM RELATING TO USE OF PROCEEDS OF DISPOSAL OR 
                    UTILIZATION OF CERTAIN DEPARTMENT OF ENERGY ASSETS.

    (a) Purpose.--The purpose of this section is to encourage 
the Secretary of Energy to dispose of or otherwise utilize 
certain assets of the Department of Energy by making available 
to the Secretary the proceeds of such disposal or utilization 
for purposes of defraying the costs of such disposal or 
utilization.
    (b) Use of Proceeds To Defray Costs.--(1) Notwithstanding 
section 3302 of title 31, United States Code, the Secretary may 
retain from the proceeds of the sale, lease, or disposal of an 
asset under subsection (c) an amount equal to the cost of the 
sale, lease, or disposal of the asset. The Secretary shall 
utilize amounts retained under this paragraph to defray the 
cost of the sale, lease, or disposal.
    (2) For purposes of paragraph (1), the cost of a sale, 
lease, or disposal shall include--
            (A) the cost of administering the sale, lease, or 
        disposal;
            (B) the cost of recovering or preparing the asset 
        concerned for the sale, lease, or disposal; and
            (C) any other cost associated with the sale, lease, 
        or disposal.
    (c) Covered Transactions.--Subsection (b) applies to the 
following transactions:
            (1) The sale of heavy water at the Savannah River 
        Site, South Carolina, that is under the jurisdiction of 
        the Defense Environmental Management Program.
            (2) The sale of precious metals that are under the 
        jurisdiction of the Defense Environmental Management 
        Program.
            (3) The lease of buildings and other facilities 
        located at the Hanford Reservation, Washington, that 
        are under the jurisdiction of the Defense Environmental 
        Management Program.
            (4) The lease of buildings and other facilities 
        located at the Savannah River Site that are under the 
        jurisdiction of the Defense Environmental Management 
        Program.
            (5) The disposal of equipment and other personal 
        property located at the Rocky Flats Defense 
        Environmental Technology Site, Colorado, that is under 
        the jurisdiction of the Defense Environmental 
        Management Program.
            (6) The disposal of materials at the National 
        Electronics Recycling Center, Oak Ridge, Tennessee, 
        that are under the jurisdiction of the Defense 
        Environmental Management Program.
    (d) Applicability of Disposal Authority.--Nothing in this 
section shall be construed to limit the application of sections 
202 and 203(j) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 483 and 484(j)) to the disposal 
of equipment and other personal property covered by this 
section.
    (e) Report.--Not later than January 31, 1999, the Secretary 
shall submit to the congressional defense committees a report 
on amounts retained by the Secretary under subsection (b) 
during fiscal year 1998.

SEC. 3139. MODIFICATION AND EXTENSION OF AUTHORITY RELATING TO 
                    APPOINTMENT OF CERTAIN SCIENTIFIC, ENGINEERING, AND 
                    TECHNICAL PERSONNEL.

    (a) Repeal of Requirement for EPA Study.--Section 3161 of 
the National Defense Authorization Act for Fiscal Year 1995 
(Public Law 103-337; 108 Stat. 3095; 42 U.S.C. 7231 note) is 
amended--
            (1) by striking out subsection (c); and
            (2) by redesignating subsection (d) as subsection 
        (c).
    (b) Extension of Authority.--Paragraph (1) of subsection 
(c) of such section, as so redesignated, is amended by striking 
out ``September 30, 1997'' and inserting in lieu thereof 
``September 30, 1999''.

SEC. 3140. LIMITATION ON USE OF FUNDS FOR SUBCRITICAL NUCLEAR WEAPONS 
                    TESTS.

    (a) Limitation.--The Secretary of Energy may not conduct 
any subcritical nuclear weapons tests using funds appropriated 
or otherwise available to the Secretary for fiscal year 1998 
until the Secretary submits to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives a detailed report on the use of the 
funds available to the Secretary for fiscal years 1996 and 1997 
to conduct such tests.
    (b) Exception.--Subsection (a) shall not apply to the use 
of funds covered by that subsection for subcritical nuclear 
weapons tests if the Secretary--
            (1) determines that the use of such funds for such 
        tests is urgently required to meet national security 
        interests; and
            (2) notifies Congress of that determination before 
        using such funds for such tests.

SEC. 3141. LIMITATION ON USE OF CERTAIN FUNDS UNTIL FUTURE USE PLANS 
                    ARE SUBMITTED.

    (a) Limitation.--(1) Subject to paragraph (2), the 
Secretary of Energy may not use more than 80 percent of the 
funds available to the Secretary pursuant to the authorization 
of appropriations in section 3102(g) until the Secretary 
submits the plans described in subsection (b).
    (2) The limitation in paragraph (1) shall cease to be in 
effect if the Secretary submits, by March 15, 1998, the report 
described in subsection (c).
    (b) Plans.--The plans referred to in subsection (a)(1) are 
the draft future use plan and the final future use plan 
required under section 3153(f) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2840; 42 U.S.C. 7274k note).
    (c) Report.--If the Secretary is unable to submit all of 
the plans described in subsection (b) by the deadlines set 
forth in such section 3153(f), the Secretary shall submit to 
Congress a report containing, for each plan that will not be 
submitted by the applicable deadline--
            (1) the status of the plan;
            (2) the reasons why the plan cannot be submitted by 
        the applicable deadline; and
            (3) the date by which the plan will be submitted.

                       Subtitle D--Other Matters

SEC. 3151. PLAN FOR STEWARDSHIP, MANAGEMENT, AND CERTIFICATION OF 
                    WARHEADS IN THE NUCLEAR WEAPONS STOCKPILE.

    (a) Plan Requirement.--The Secretary of Energy shall 
develop and annually update a plan for maintaining the nuclear 
weapons stockpile. The plan shall cover, at a minimum, 
stockpile stewardship, stockpile management, and program 
direction and shall be consistent with the programmatic and 
technical requirements of the most recent annual Nuclear 
Weapons Stockpile Memorandum.
    (b) Plan Elements.--The plan and each update of the plan 
shall set forth the following:
            (1) The number of warheads (including active and 
        inactive warheads) for each warhead type in the nuclear 
        weapons stockpile.
            (2) The current age of each warhead type, and any 
        plans for stockpile lifetime extensions and 
        modifications or replacement of each warhead type.
            (3) The process by which the Secretary of Energy is 
        assessing the lifetime, and requirements for lifetime 
        extension or replacement, of the nuclear and nonnuclear 
        components of the warheads (including active and 
        inactive warheads) in the nuclear weapons stockpile.
            (4) The process used in recertifying the safety, 
        security, and reliability of each warhead type in the 
        nuclear weapons stockpile.
            (5) Any concerns which would affect the ability of 
        the Secretary of Energy to recertify the safety, 
        security, or reliability of warheads in the nuclear 
        weapons stockpile (including active and inactive 
        warheads).
    (c) Annual Submission of Plan to Congress.--The Secretary 
of Energy shall submit to Congress the plan developed under 
subsection (a) not later than March 15, 1998, and shall submit 
an updated version of the plan not later than March 15 of each 
year thereafter. The plan shall be submitted in both classified 
and unclassified form.

SEC. 3152. REPEAL OF OBSOLETE REPORTING REQUIREMENTS.

    (a) Annual Report on Activities of the Atomic Energy 
Commission.--(1) Section 251 of the Atomic Energy Act of 1954 
(42 U.S.C. 2016) is repealed.
    (2) The table of sections at the beginning of that Act is 
amended by striking out the item relating to section 251.
    (b) Annual Report on Weapons Activities Budgets.--Section 
3156 of the National Defense Authorization Act for Fiscal Year 
1997 (Public Law 104-201; 110 Stat. 2841; 42 U.S.C. 7271c) is 
repealed.
    (c) Annual Update of Master Plan for Nuclear Weapons 
Stockpile.--Section 3153 of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 624; 42 
U.S.C. 2121 note) is repealed.
    (d) Annual Report on Weapons Activities Budgets.--Section 
3159 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; 110 Stat. 626; 42 U.S.C. 7271b note) 
is repealed.
    (e) Annual Report on Stockpile Stewardship Program.--
Section 3138 of the National Defense Authorization Act for 
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1946; 42 U.S.C. 
2121 note) is amended--
            (1) by striking out subsections (d) and (e);
            (2) by redesignating subsections (f), (g), and (h) 
        as subsections (d), (e), and (f), respectively; and
            (3) in subsection (e), as so redesignated, by 
        striking out ``and the 60-day period referred to in 
        subsection (e)(2)(A)(ii)''.
    (f) Annual Report on Development of Tritium Production 
Capacity.--Section 3134 of the National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2639) 
is repealed.
    (g) Annual Report on Research Relating to Defense Waste 
Cleanup Technology Program.--Section 3141 of the National 
Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189; 103 Stat. 1679; 42 U.S.C. 7274a) is 
amended--
            (1) by striking out subsection (c); and
            (2) by redesignating subsection (d) as subsection 
        (c).
    (h) Quarterly Report on Major DoE National Security 
Programs.--Section 3143 of the National Defense Authorization 
Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 
Stat. 1681; 42 U.S.C. 7271a) is repealed.
    (i) Annual Report on Nuclear Test Ban Readiness Program.--
Section 1436 of the National Defense Authorization Act, Fiscal 
Year 1989 (Public Law 100-456; 102 Stat. 2075; 42 U.S.C. 2121 
note) is amended by striking out subsection (e).

SEC. 3153. STUDY AND FUNDING RELATING TO IMPLEMENTATION OF WORKFORCE 
                    RESTRUCTURING PLANS.

    (a) Study Requirement.--The Secretary of Energy shall 
conduct a study on the effects of workforce restructuring plans 
for defense nuclear facilities developed pursuant to section 
3161 of the National Defense Authorization Act for Fiscal Year 
1993 (42 U.S.C. 7274h).
    (b) Matters Covered by Study.-- The study shall cover the 
four-year period preceding the date of the enactment of this 
Act and shall include the following:
            (1) An analysis of the number of jobs created by 
        any employee retraining, education, and reemployment 
        assistance and any community impact assistance provided 
        in each workforce restructuring plan developed pursuant 
        to section 3161 of the National Defense Authorization 
        Act for Fiscal Year 1993.
            (2) An analysis of other benefits provided pursuant 
        to such plans, including any assistance provided to 
        community reuse organizations.
            (3) A description of the funds expended, and the 
        funds obligated but not expended, pursuant to such 
        plans as of the date of the report.
            (4) A description of the criteria used since 
        October 23, 1992, in providing assistance pursuant to 
        such plans.
            (5) A comparison of any similar benefits provided--
                    (A) pursuant to such a plan to employees 
                whose employment at the defense nuclear 
                facility covered by the plan is terminated; and
                    (B) to employees whose employment at a 
                facility where more than 50 percent of the 
                revenues are derived from contracts with the 
                Department of Defense has been terminated as a 
                result of cancellation, termination, or 
                completion of contracts with the Department of 
                Defense and the employees whose employment is 
                terminated constitute more than 15 percent of 
                the employees at that facility.
    (c) Conduct of Study.--(1) The study shall be conducted 
through a contract with an independent private auditing firm.
    (2) The Secretary of Energy may not enter into any contract 
for the conduct of the study until the Secretary submits a 
notification of the proposed contract award to the 
congressional defense committees.
    (3) The Secretary of Energy and the Secretary of Defense 
shall each ensure that any firm conducting the study is 
provided access to all documents in the possession of the 
Department of Energy or the Department of Defense, as the case 
may be, that are relevant to the study, including documents in 
the possession of the Inspector General of the Department of 
Energy or the Inspector General of the Department of Defense.
    (d) Report on Study.--The Secretary of Energy shall submit 
a report to Congress on the results of the study not later than 
March 31, 1998.
    (e) Limitation on Use of Funds for Local Impact 
Assistance.--(1) None of the funds authorized to be 
appropriated to the Department of Energy pursuant to section 
3103(6) may be used for local impact assistance pursuant to a 
plan under section 3161(c)(6) of the National Defense 
Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h(c)(6)) 
until--
            (A) with respect to assistance referred to in 
        section 3161(c)(6)(A) of such Act, the Secretary of 
        Energy coordinates with, provides a copy of the plan 
        to, and obtains the approval of the Secretary of Labor; 
        and
            (B) with respect to assistance referred to in 
        section 3161(c)(6)(C) of such Act, the Secretary of 
        Energy coordinates with, provides a copy of the plan 
        to, and obtains the approval of the Secretary of 
        Commerce.
    (2) For purposes of paragraph (1), if the Secretary of 
Labor or the Secretary of Commerce does not disapprove a plan 
within 60 days after receiving a copy of the plan, the plan is 
deemed to be approved.
    (f) Semiannual Report to Congress of Local Impact 
Assistance.--The Secretary of Energy shall submit to Congress 
every six months a report setting forth a description of, and 
the amount or value of, all local impact assistance provided 
during the preceding six months under section 3161(c)(6) of the 
National Defense Authorization Act of 1993 (42 U.S.C. 
7274h(c)(6)).
    (g) Effect on USEC Privatization Act.--Nothing in this 
section shall be construed as diminishing or affecting the 
obligations of the Secretary of Energy under section 3110(a)(5) 
of the USEC Privatization Act (Public Law 104-134; 110 Stat. 
1321-341; 42 U.S.C. 2297h-8(a)(5)).
    (h) Definition.--In this section, the term ``defense 
nuclear facility'' has the meaning provided the term 
``Department of Energy defense nuclear facility'' in section 
3163 of the National Defense Authorization Act for Fiscal Year 
1993 ( Public Law 102-484; 42 U.S.C. 7274j).

SEC. 3154. REPORT AND PLAN FOR EXTERNAL OVERSIGHT OF NATIONAL 
                    LABORATORIES.

    (a) Report.--Not later than July 1, 1999, the Secretary of 
Energy shall submit to Congress a report on the external 
oversight of the national laboratories.
    (b) Matters Covered.--The report shall contain the 
following:
            (1) A description of the external oversight 
        practices at the national laboratories and an analysis 
        of the effectiveness of such practices, including the 
        effect of such practices on the productivity of the 
        laboratories and the research conducted by the 
        laboratories.
            (2) Recommendations regarding the continuation, 
        consolidation, or discontinuation of the external 
        oversight practices described in paragraph (1), and the 
        rationale for the recommendations.
            (3) Recommendations for any new external oversight 
        practices that should be implemented, and the rationale 
        for the recommendations.
            (4) A plan for carrying out the recommendations.
    (c) National Laboratories Covered.--For purposes of this 
section, the national laboratories are--
            (1) the Lawrence Livermore National Laboratory, 
        Livermore, California;
            (2) the Los Alamos National Laboratory, Los Alamos, 
        New Mexico; and
            (3) the Sandia National Laboratories, Albuquerque, 
        New Mexico.

SEC. 3155. UNIVERSITY-BASED RESEARCH COLLABORATION PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) The maintenance of scientific and engineering 
        competence in the United States is vital to long-term 
        national security and the defense and national security 
        missions of the Department of Energy.
            (2) Engaging the universities and colleges of the 
        Nation in research on long-range problems of vital 
        national security interest will be critical to solving 
        the technology challenges faced within the defense and 
        national security programs of the Department of Energy 
        in the next century.
            (3) Enhancing collaboration among the national 
        laboratories, universities and colleges, and industry 
        will contribute significantly to the performance of 
        these Department of Energy missions.
    (b) Program.--The Secretary of Energy shall establish a 
university program at a location that can develop the most 
effective collaboration among national laboratories, 
universities and colleges, and industry in support of 
scientific and engineering advancement in key Department of 
Energy defense and national security program areas.
    (c) Funding.--Of the funds authorized to be appropriated in 
this title to the Department of Energy for fiscal year 1998, 
the Secretary shall make $5,000,000 available for the 
establishment and operation of the program under subsection 
(b).

SEC. 3156. STOCKPILE STEWARDSHIP PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) Eliminating the threat posed by nuclear weapons 
        to the United States is an important national security 
        goal.
            (2) As long as nuclear threats remain, the nuclear 
        deterrent of the United States must be effective and 
        reliable.
            (3) A safe, secure, effective, and reliable United 
        States nuclear stockpile is central to the current 
        nuclear deterrence strategy of the United States.
            (4) The Secretary of Energy has undertaken a 
        stockpile stewardship and management program to ensure 
        the safety, security, effectiveness, and reliability of 
        the nuclear weapons stockpile of the United States, 
        consistent with all United States treaty requirements 
        and the requirements of the nuclear deterrence strategy 
        of the United States.
            (5) It is the policy of the current administration 
        that new nuclear warhead designs are not required to 
        effectively implement the nuclear deterrence strategy 
        of the United States.
    (b) Policy.--It is the policy of the United States that--
            (1) activities of the stockpile stewardship program 
        shall be directed toward ensuring that the United 
        States possesses a safe, secure, effective, and 
        reliable nuclear stockpile, consistent with the 
        national security requirements of the United States; 
        and
            (2) stockpile stewardship activities of the United 
        States shall be conducted in conformity with the terms 
        of the Treaty on the Non-Proliferation of Nuclear 
        Weapons and the Comprehensive Test Ban Treaty signed by 
        the President on September 24, 1996, when and if that 
        treaty enters into force.

SEC. 3157. REPORTS ON ADVANCED SUPERCOMPUTER SALES TO CERTAIN FOREIGN 
                    NATIONS.

    (a) Reports.--The Secretary of Energy shall require that 
any company that is a participant in the Accelerated Strategic 
Computing Initiative (ASCI) program of the Department of Energy 
report to the Secretary and to the Secretary of Defense each 
sale by that company to a country designated as a Tier III 
country of a computer capable of operating at a speed in excess 
of 2,000 millions theoretical operations per second (MTOPS). 
The report shall include a description of the following with 
respect to each such sale:
            (1) The anticipated end-use of the computer sold.
            (2) The software included with the computer.
            (3) Any arrangement under the terms of the sale 
        regarding--
                    (A) upgrading the computer;
                    (B) servicing the computer; or
                    (C) furnishing spare parts for the 
                computer.
    (b) Covered Countries.--For purposes of this section, the 
countries designated as Tier III countries are the countries 
listed as ``computer tier 3'' eligible countries in part 740.7 
of title 15 of the Code of Federal Regulations, as in effect on 
June 10, 1997 (or any successor list).
    (c) Quarterly Submission of Reports.--The Secretary of 
Energy shall require that reports under subsection (a) be 
submitted quarterly.
    (d) Annual Report.--The Secretary of Energy shall submit to 
Congress an annual report containing all information received 
under subsection (a) during the preceding year. The first 
annual report shall be submitted not later than July 1, 1998.

SEC. 3158. TRANSFERS OF REAL PROPERTY AT CERTAIN DEPARTMENT OF ENERGY 
                    FACILITIES.

    (a) Transfer Regulations.--(1) The Secretary of Energy 
shall prescribe regulations for the transfer by sale or lease 
of real property at Department of Energy defense nuclear 
facilities for the purpose of permitting the economic 
development of the property.
    (2) The Secretary of Energy may not transfer real property 
under the regulations prescribed under paragraph (1) until--
            (A) the Secretary submits a notification of the 
        proposed transfer to the congressional defense 
        committees; and
            (B) a period of 30 days has elapsed following the 
        date on which the notification is submitted.
    (b) Indemnification.--(1) Except as provided in paragraph 
(3) and subject to subsection (c), in the sale or lease of real 
property pursuant to the regulations prescribed under 
subsection (a), the Secretary of Energy may hold harmless and 
indemnify a person or entity described in paragraph (2) against 
any claim for injury to person or property that results from 
the release or threatened release of a hazardous substance or 
pollutant or contaminant as a result of Department of Energy 
activities at the defense nuclear facility on which the real 
property is located. Before entering into any agreement for 
such a sale or lease, the Secretary shall notify the person or 
entity that the Secretary has authority to provide 
indemnification to the person or entity under this subsection. 
The Secretary shall include in any agreement for such a sale or 
lease a provision stating whether indemnification is or is not 
provided.
    (2) Paragraph (1) applies to the following persons and 
entities:
            (A) Any State that acquires ownership or control of 
        real property of a defense nuclear facility.
            (B) Any political subdivision of a State that 
        acquires such ownership or control.
            (C) Any other person or entity that acquires such 
        ownership or control.
    (3) To the extent the persons and entities described in 
paragraph (2) contributed to any such release or threatened 
release, paragraph (1) shall not apply.
    (c) Conditions.--(1) No indemnification on a claim for 
injury may be provided under this section unless the person or 
entity making a request for the indemnification--
            (A) notifies the Secretary of Energy in writing 
        within two years after such claim accrues;
            (B) furnishes to the Secretary copies of pertinent 
        papers received by the person or entity;
            (C) furnishes evidence or proof of the claim;
            (D) provides, upon request by the Secretary, access 
        to the records and personnel of the person or entity 
        for purposes of defending or settling the claim; and
            (E) begins action within six months after the date 
        of mailing, by certified or registered mail, of notice 
        of final denial of the claim by the Secretary.
    (2) For purposes of paragraph (1)(A), the date on which a 
claim accrues is the date on which the person asserting the 
claim knew (or reasonably should have known) that the injury to 
person or property referred to in subsection (b)(1) was caused 
or contributed to by the release or threatened release of a 
hazardous substance, pollutant, or contaminant as a result of 
Department of Energy activities at the defense nuclear facility 
on which the real property is located.
    (d) Authority of Secretary of Energy.--(1) In any case in 
which the Secretary of Energy determines that the Secretary may 
be required to indemnify a person or entity under this section 
for any claim for injury to person or property referred to in 
subsection (b)(1), the Secretary may settle or defend the claim 
on behalf of that person or entity.
    (2) In any case described in paragraph (1), if the person 
or entity that the Secretary may be required to indemnify does 
not allow the Secretary to settle or defend the claim, the 
person or entity may not be indemnified with respect to that 
claim under this section.
    (e) Relationship to Other Law.--Nothing in this section 
shall be construed as affecting or modifying in any way section 
120(h) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)).
    (f) Definitions.--In this section:
            (1) The term ``defense nuclear facility'' has the 
        meaning provided by the term ``Department of Energy 
        defense nuclear facility'' in section 318 of the Atomic 
        Energy Act of 1954 (42 U.S.C. 2286g).
            (2) The terms ``hazardous substance'', ``release'', 
        and ``pollutant or contaminant'' have the meanings 
        provided by section 101 of the Comprehensive 
        Environmental Response, Compensation, and Liability Act 
        of 1980 (42 U.S.C. 9601).

SEC. 3159. REQUIREMENT TO DELEGATE CERTAIN AUTHORITIES TO SITE MANAGER 
                    OF HANFORD RESERVATION.

    Section 3173(b) of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2848; 42 
U.S.C. 7274k) is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``In addition'' and 
                inserting in lieu thereof ``Except as provided 
                in paragraph (5), in addition''; and
                    (B) by striking out ``Act,'' and inserting 
                in lieu thereof ``subtitle,''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(5) In the case of the Hanford Reservation, Richland, 
Washington, the Secretary shall delegate to the Site Manager 
the authority described in paragraph (1) for fiscal year 1998. 
The Secretary may withdraw the delegated authority if the 
Secretary--
            ``(A) determines that the Site Manager of the 
        Hanford Reservation has misused or misapplied that 
        authority; and
            ``(B) the Secretary submits to Congress a 
        notification of the Secretary's intent to withdraw the 
        authority.''.

SEC. 3160. SUBMITTAL OF BIENNIAL WASTE MANAGEMENT REPORTS.

    Section 3153(b)(2)(B) of the National Defense Authorization 
Act for Fiscal Year 1994 (42 U.S.C. 7274k(b)(2)(B)) is amended 
by striking out ``odd-numbered year after 1995'' and inserting 
in lieu thereof ``odd-numbered year after 1997''.

SEC. 3161. DEPARTMENT OF ENERGY SECURITY MANAGEMENT BOARD.

    (a) Establishment.--(1) The Secretary of Energy shall 
establish a board to be known as the ``Department of Energy 
Security Management Board'' (in this section referred to as the 
``Board'').
    (2) The Board shall advise the Secretary on policy matters, 
operational concerns, strategic planning, personnel, budget, 
procurement, and development of priorities relating to the 
security functions of the Department of Energy.
    (b) Members.--The Board shall be comprised of--
            (1) the Secretary of Energy, who shall serve as 
        chairman;
            (2) the Director of the Office of Nonproliferation 
        and National Security of the Department of Energy;
            (3) the Assistant Secretary of Energy for 
        Environmental Management;
            (4) the Assistant Secretary of Energy for Defense 
        Programs;
            (5) the Assistant Secretary of Energy for 
        Environment, Safety, and Health;
            (6) the Associate Deputy Secretary of Energy for 
        Field Management;
            (7) three individuals selected by the Secretary of 
        Defense and appointed by the Secretary of Energy;
            (8) an individual selected by the Director of the 
        Federal Bureau of Investigation and appointed by the 
        Secretary of Energy; and
            (9) an individual selected by the Director of 
        Central Intelligence and appointed by the Secretary of 
        Energy.
    (c) Appointments.--(1) The Secretary of Defense, the 
Director of the Federal Bureau of Investigation, and the 
Director of Central Intelligence shall consult with the 
Secretary of Energy in selecting individuals for appointment 
under paragraphs (7), (8), and (9), respectively, of subsection 
(b).
    (2) The Secretary of Energy may not appoint as a member of 
the Board under paragraph (7), (8), or (9) of subsection (b) an 
officer or employee of the Department of Energy, an employee of 
a contractor or subcontractor of the Department, or an 
individual under contract with the Department.
    (3) The Secretary of Energy shall appoint members of the 
Board under paragraphs (7), (8), and (9) of subsection (b) not 
later than January 15, 1998.
    (d) Vacancies.--Any vacancy in the Board shall be filled in 
the same manner as the original appointment.
    (e) Personnel Matters.--(1)(A) Each member of the Board who 
is not an officer or employee of the Federal Government shall 
be compensated at a rate equal to the daily equivalent of the 
annual rate of basic pay prescribed for level V of the 
Executive Schedule under section 5316 of title 5, United States 
Code, for each day (including travel time) during which such 
member is engaged in the performance of the duties of the 
Board.
    (B) All members of the Board who are officers or employees 
of the United States shall serve without compensation in 
addition to that received for their services as officers or 
employees of the United States.
    (2) The members of the Board 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 Board.
    (f) Applicability of FACA.--The provisions of the Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
activities of the Board under this section.
    (g) Termination.--The Board shall terminate on October 31, 
2000.
    (h) Security Functions Defined.--In this section, the term 
``security functions'' means all Department of Energy 
activities related to the safeguarding and security of nuclear 
weapons and materials, protection of classified and 
unclassified controlled nuclear information, and physical and 
personnel security.

SEC. 3162. SUBMITTAL OF ANNUAL REPORT ON STATUS OF SECURITY FUNCTIONS 
                    AT NUCLEAR WEAPONS FACILITIES.

    (a) In General.--Not later than September 1 each year, the 
Secretary of Energy shall submit to the congressional defense 
committees the report entitled ``Annual Report to the President 
on the Status of Safeguards and Security of Domestic Nuclear 
Weapons Facilities'', or any successor report to such report.
    (b) Requirement Relating to Reports Through Fiscal Year 
2000.--The Secretary shall include with each report submitted 
under subsection (a) in fiscal years 1998 through 2000 any 
comments on such report by the members of the Department of 
Energy Security Management Board established under section 3161 
that such members consider appropriate.

SEC. 3163. MODIFICATION OF AUTHORITY ON COMMISSION ON MAINTAINING 
                    UNITED STATES NUCLEAR WEAPONS EXPERTISE.

    (a) Commencement of Activities.--Subsection (b)(1) of 
section 3162 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2844; 42 U.S.C. 
2121 note) is amended, effective January 1, 1998--
            (1) in subparagraph (C), by adding at the end the 
        following new sentence: ``The chairman may be 
        designated once five members of the Commission have 
        been appointed under subparagraph (A).''; and
            (2) by adding at the end the following:
    ``(E) The Commission may commence its activities under this 
section upon the designation of the chairman of the Commission 
under subparagraph (C).''.
    (b) Deadline for Report.--Subsection (d) of that section is 
amended by striking out ``March 15, 1998,'' and inserting in 
lieu thereof ``March 15, 1999,''.

SEC. 3164. LAND TRANSFER, BANDELIER NATIONAL MONUMENT.

    (a) Transfer of Administrative Jurisdiction.--The Secretary 
of Energy shall transfer to the Secretary of the Interior 
administrative jurisdiction over a parcel of real property 
consisting of approximately 4.47 acres as depicted on the map 
entitled ``Boundary Map, Bandelier National Monument'', No. 
315/80,051, dated March 1995.
    (b) Boundary Modification.--The boundary of the Bandelier 
National Monument established by Proclamation No. 1322 (16 
U.S.C. 431 note) is modified to include the real property 
transferred under subsection (a).
    (c) Public Availability of Map.--The map described in 
subsection (a) shall be on file and available for public 
inspection in the Lands Office at the Southwest System Support 
Office of the National Park Service, Santa Fe, New Mexico, and 
in the office of the Superintendent of Bandelier National 
Monument.
    (d) Administration.--The real property and interests in 
real property transferred under subsection (a) shall be--
            (1) administered as part of Bandelier National 
        Monument; and
            (2) subject to all laws applicable to the Bandelier 
        National Monument and all laws generally applicable to 
        units of the National Park System.

SEC. 3165. FINAL SETTLEMENT OF DEPARTMENT OF ENERGY COMMUNITY 
                    ASSISTANCE OBLIGATIONS WITH RESPECT TO LOS ALAMOS 
                    NATIONAL LABORATORY, NEW MEXICO.

    (a) In General.--The Secretary of Energy shall--
            (1) convey, without consideration, to the 
        Incorporated County of Los Alamos, New Mexico (in this 
        section referred to as the ``County''), or to the 
        designee of the County, fee title to the parcels of 
        land that are allocated for conveyance to the County in 
        the agreement under subsection (e); and
            (2) transfer to the Secretary of the Interior, in 
        trust for the Pueblo of San Ildefonso (in this section 
        referred to as the ``Pueblo''), administrative 
        jurisdiction over the parcels that are allocated for 
        transfer to the Secretary of the Interior in such 
        agreement.
    (b) Preliminary Identification of Parcels of Land for 
Conveyance or Transfer.--(1) Not later than 90 days after the 
date of enactment of this Act, the Secretary of Energy shall 
submit to the congressional defense committees a report 
identifying the parcels of land under the jurisdiction of the 
Secretary at the Los Alamos National Laboratory that are 
suitable for conveyance or transfer under this section.
    (2) A parcel is suitable for conveyance or transfer for 
purposes of paragraph (1) if the parcel--
            (A) is not required to meet the national security 
        mission of the Department of Energy or will not be 
        required for that purpose before the end of the 10-year 
        period beginning on the date of enactment of this Act;
            (B) is likely to be conveyable or transferable, as 
        the case may be, under this section not later than the 
        end of such period; and
            (C) is suitable for use for a purpose specified in 
        subsection (h).
    (c) Review of Title.--(1) Not later than one year after the 
date of enactment of this Act, the Secretary shall submit to 
the congressional defense committees a report setting forth the 
results of a title search on each parcel of land identified as 
suitable for conveyance or transfer under subsection (b), 
including an analysis of any claims against or other 
impairments to the fee title to each such parcel.
    (2) In the period beginning on the date of the completion 
of the title search with respect to a parcel under paragraph 
(1) and ending on the date of the submittal of the report under 
that paragraph, the Secretary shall take appropriate actions to 
resolve the claims against or other impairments, if any, to fee 
title that are identified with respect to the parcel in the 
title search.
    (d) Environmental Restoration.--(1) Not later than 21 
months after the date of enactment of this Act, the Secretary 
shall--
            (A) identify the environmental restoration or 
        remediation, if any, that is required with respect to 
        each parcel of land identified under subsection (b) to 
        which the United States has fee title;
            (B) carry out any review of the environmental 
        impact of the conveyance or transfer of each such 
        parcel that is required under the provisions of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.); and
            (C) submit to Congress a report setting forth the 
        results of the activities under subparagraphs (A) and 
        (B).
    (2) If the Secretary determines under paragraph (1) that a 
parcel described in paragraph (1)(A) requires environmental 
restoration or remediation, the Secretary shall, to the maximum 
extent practicable, complete the environmental restoration or 
remediation of the parcel not later than 10 years after the 
date of enactment of this Act.
    (e) Agreement for Allocation of Parcels.--As soon as 
practicable after completing the review of titles to parcels of 
land under subsection (c), the Secretary of the Interior, on 
behalf of the Pueblo and for the County, shall submit to the 
Secretary of Energy an agreement between the Secretary of the 
Interior and the County that allocates between the Secretary of 
the Interior and the County the parcels to which the United 
States has fee title.
    (f) Plan for Conveyance and Transfer.--(1) Not later than 
90 days after the date of the submittal to the Secretary of 
Energy of the agreement under subsection (e), the Secretary 
shall submit to the congressional defense committees a plan for 
conveying or transferring parcels of land under this section in 
accordance with the allocation specified in the agreement.
    (2) The plan under paragraph (1) shall provide for the 
completion of the conveyance or transfer of parcels under this 
section not later than 9 months after the date of the submittal 
of the plan under that paragraph.
    (g) Conveyance or Transfer.--(1) Subject to paragraphs (2) 
and (3), the Secretary shall convey or transfer parcels of land 
in accordance with the allocation specified in the agreement 
submitted to the Secretary under subsection (e).
    (2) In the case of a parcel allocated under the agreement 
that is not available for conveyance or transfer in accordance 
with the requirement in subsection (f)(2) by reason of its 
requirement to meet the national security mission of the 
Department, the Secretary shall convey or transfer the parcel, 
as thecase may be, when the parcel is no longer required for 
that purpose.
    (3)(A) In the case of a parcel allocated under the 
agreement that is not available for conveyance or transfer in 
accordance with such requirement by reason of requirements for 
environmental restoration or remediation, the Secretary shall 
convey or transfer the parcel, as the case may be, upon the 
completion of the environmental restoration or remediation that 
is required with respect to the parcel.
    (B) If the Secretary determines that environmental 
restoration or remediation cannot reasonably be expected to be 
completed with respect to a parcel by the end of the 10-year 
period beginning on the date of enactment of this Act, the 
Secretary shall not convey or transfer the parcel under this 
section.
    (h) Use of Conveyed or Transferred Land.--The parcels of 
land conveyed or transferred under this section shall be used 
for historic, cultural, or environmental preservation purposes, 
economic diversification purposes, or community self-
sufficiency purposes.
    (i) Treatment of Conveyances and Transfers.--(1) The 
purpose of the conveyances and transfers under this section is 
to fulfill the obligations of the United States with respect to 
Los Alamos National Laboratory, New Mexico, under sections 91 
and 94 of the Atomic Energy Community Act of 1955 (42 U.S.C. 
2391, 2394).
    (2) Upon the completion of the conveyance or transfer of 
the parcels of land available for conveyance or transfer under 
this section, the Secretary shall make no further payments with 
respect to Los Alamos National Laboratory under section 91 or 
section 94 of the Atomic Energy Community Act of 1955.

SEC. 3166. SENSE OF CONGRESS REGARDING THE Y-12 PLANT IN OAK RIDGE, 
                    TENNESSEE.

    It is the sense of Congress that the Y-12 Plant in Oak 
Ridge, Tennessee, should be used as a national prototype center 
and that other executive agencies should utilize this center, 
where appropriate, to maximize their efficiency and cost 
effectiveness.

SEC. 3167. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS 
                    NATIONAL LABORATORY, NEW MEXICO.

    (a) Availability of Funds.--Of the funds authorized to be 
appropriated or otherwise made available to the Department of 
Energy by this title, $5,000,000 shall be available for payment 
by the Secretary of Energy to a nonprofit or not-for-profit 
educational foundation chartered to enhance educational 
activities in the public schools in the vicinity of Los Alamos 
National Laboratory, New Mexico (in this section referred to as 
the ``Foundation'').
    (b) Use of Funds.--(1) The Foundation shall utilize funds 
provided under subsection (a) the basis of, or as a 
contribution to, an endowment fund for the Foundation.
    (2) The Foundation shall use the income generated from 
investments in the endowment fund that are attributable to the 
payment made under subsection (a) to fund programs to support 
the educational needs of children in public schools in the 
vicinity of Los Alamos National Laboratory.
    (c) Report.--Not later than March 1, 1998, the Secretary 
shall submit to the congressional defense committees a report 
setting forth the following:
            (1) The amount of, and a schedule for, payments to 
        the Foundation by the Secretary that are in addition to 
        the payment provided under subsection (a).
            (2) A plan to ensure that the Secretary makes no 
        other payments to support the educational activities 
        referred to in subsection (b)(2) after September 30, 
        2002.

SEC. 3168. IMPROVEMENTS TO GREENVILLE ROAD, LIVERMORE, CALIFORNIA.

    From amounts authorized to be appropriated or otherwise 
made available to the Department of Energy by this title, funds 
shall be available for improvements to Greenville Road, 
Livermore, California, as follows:
            (1) $3,500,000 in fiscal year 1998.
            (2) $3,300,000 in fiscal year 1999.

SEC. 3169. REPORT ON ALTERNATIVE SYSTEM FOR AVAILABILITY OF FUNDS.

    (a) Report.--Not later than October 1, 1998, the Secretary 
of Energy shall submit to Congress a report assessing how the 
Department of Energy could carry out a transition from a no-
year funding system to a limited-period funding system.
    (b) Matters Covered.--The report shall cover the following 
matters:
            (1) A conceptual proposal on how the no-year 
        funding system could be phased out.
            (2) An estimate of the cost of making the 
        transition to a limited-period funding system.
            (3) A description of the programmatic effects that 
        could occur if the no-year funding system is 
        eliminated.
            (4) A delineation of activities for which the no-
        year funding system should be retained.
    (c) Definitions.--In this section:
            (1) The term ``no-year funding system'' means a 
        funding system in which funds are available to the 
        Department of Energy until expended.
            (2) The term ``limited-period funding system'' 
        means a funding system in which funds are available to 
        the Department of Energy for a limited period of time.

SEC. 3170. REPORT ON REMEDIATION UNDER THE FORMERLY UTILIZED SITES 
                    REMEDIAL ACTION PROGRAM.

    Not later than March 1, 1998, the Secretary of Energy shall 
submit to Congress a report containing information responding 
to the following questions regarding the Formerly Utilized 
Sites Remedial Action Program:
            (1) How many Formerly Utilized Sites remain to be 
        remediated, what portions of these remaining sites have 
        completed remediation (including any offsite 
        contamination), what portions of the sites remain to be 
        remediated (including any offsite contamination), what 
        types of contaminants are present at each site, and 
        what are the projected timeframes for completing 
        remediation at each site?
            (2) What is the cost of the remaining response 
        actions necessary to address actual or threatened 
        releases of hazardous substances at each Formerly 
        Utilized Site, including any contamination that is 
        present beyond the perimeter of the facilities?
            (3) For each site, how much will it cost to 
        remediate the radioactive contamination, and how much 
        will it cost to remediate the non-radioactive 
        contamination?
            (4) How many sites potentially involve private 
        parties that could be held responsible for remediation 
        costs, including remediation costs related to offsite 
        contamination?
            (5) What type of agreements under the Formerly 
        Utilized Sites Remedial Action Program have been 
        entered into with private parties to resolve the level 
        of liability for remediation costs at these facilities, 
        and to what extent have these agreements been tied to a 
        distinction between radioactive and non-radioactive 
        contamination present at these sites?
            (6) What efforts have been undertaken by the 
        Department to ensure that the settlement agreements 
        entered into with private parties to resolve liability 
        for remediation costs at these facilities have been 
        consistent on a program wide basis?

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
Sec. 3202. Report on external regulation of defense nuclear facilities.

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 
1998, $17,500,000 for the operation of the Defense Nuclear 
Facilities Safety Board under chapter 21 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2286 et seq.).

SEC. 3202. REPORT ON EXTERNAL REGULATION OF DEFENSE NUCLEAR FACILITIES.

    (a) Reporting Requirement.--The Defense Nuclear Facilities 
Safety Board (in this section referred to as the ``Board'') 
shall prepare a report and make recommendations on its role in 
the Department of Energy's decision to establish external 
regulation of defense nuclear facilities. The report shall 
include the following:
            (1) An assessment of the value of and the need for 
        the Board to continue to perform the functions 
        specified under chapter 21 of the Atomic Energy Act of 
        1954 (42 U.S.C. 2286 et seq.).
            (2) An assessment of the relationship between the 
        functions of the Board and a proposal by the Department 
        of Energy to place Department of Energy defense nuclear 
        facilities under the jurisdiction of external 
        regulatory agencies.
            (3) An assessment of the functions of the Board and 
        whether there is a need to modify or amend such 
        functions.
            (4) An assessment of the relative advantages and 
        disadvantages to the Department and the public of 
        continuing the functions of the Board with respect to 
        Department of Energy defense nuclear facilities and 
        replacing the activities of the Board with external 
        regulation of such facilities.
            (5) A list of all existing or planned Department of 
        Energy defense nuclear facilities that are similar to 
        facilities under the regulatory jurisdiction of the 
        Nuclear Regulatory Commission.
            (6) A list of all Department of Energy defense 
        nuclear facilities that are in compliance with all 
        applicable Department of Energy orders, regulations, 
        and requirements relating to the design, construction, 
        operation, and decommissioning of defense nuclear 
        facilities.
            (7) A list of all Department of Energy defense 
        nuclear facilities that have implemented, pursuant to 
        an implementation plan, recommendations made by the 
        Board and accepted by the Secretary of Energy.
            (8) A list of Department of Energy defense nuclear 
        facilities that have a function related to Department 
        weapons activities.
            (9)(A) A list of each existing defense nuclear 
        facility that the Board determines--
                    (i) should continue to stay within the 
                jurisdiction of the Board for a period of time 
                or indefinitely; and
                    (ii) should come under the jurisdiction of 
                an outside regulatory authority.
            (B) An explanation of the determinations made under 
        subparagraph (A).
            (10) For any existing facilities that should, in 
        the opinion of the Board, come under the jurisdiction 
        of an outside regulatory authority, the date when this 
        move would occur and the period of time necessary for 
        the transition.
            (11) A list of any proposed Department of Energy 
        defense nuclear facilities that should come under the 
        Board's jurisdiction.
            (12) An assessment of regulatory and other issues 
        associated with the design, construction, operation, 
        and decommissioning of facilities that are not owned by 
        the Department of Energy but which would provide 
        services to the Department of Energy.
            (13) An assessment of the role of the Board, if 
        any, in privatization projects undertaken by the 
        Department.
            (14) An assessment of the role of the Board, if 
        any, in any tritium production facilities.
            (15) An assessment of the comparative advantages 
        and disadvantages to the Department of Energy in the 
        event some or all Department of Energy defense nuclear 
        facilities were no longer included in the functions of 
        the Board and were regulated by the Nuclear Regulatory 
        Commission.
            (16) A comparison of the cost, as identified by the 
        Nuclear Regulatory Commission, that would be incurred 
        at a gaseous diffusion plant to comply with regulations 
        issued by the Nuclear Regulatory Commission, with the 
        cost that would be incurred by a gaseous diffusion 
        plant if such a plant was considered to be a Department 
        of Energy defense nuclear facility as defined by 
        chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C 
        2286 et seq.).
    (b) Comments on Report.--Before submission of the report to 
Congress under subsection (c), the Board shall transmit the 
report to the Secretary of Energy and the Nuclear Regulatory 
Commission. The Secretary and the Commission shall provide 
their comments on the report to both the Board and to Congress.
    (c) Submission to Congress.--Not later than six months 
after the date of the enactment of this Act, the Board shall 
provide to Congress an interim report on the status of the 
implementation of this section. Not later than one year after 
the date of the enactment of this Act, and not earlier than 30 
days after receipt of comments from the Secretary of Energy and 
the Nuclear Regulatory Commission under subsection (b), the 
Board shall submit to Congress the report required under 
subsection (a).
    (d) Definition.--In this section, the term ``Department of 
Energy defense nuclear facility'' has the meaning provided by 
section 318 of the Atomic Energy Act of 1954 (42 U.S.C. 2286g).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of beryllium copper master alloy in National Defense 
          Stockpile.
Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.
Sec. 3305. Disposal of cobalt in National Defense Stockpile.
Sec. 3306. Required procedures for disposal of strategic and critical 
          materials.
Sec. 3307. Return of surplus platinum from the Department of the 
          Treasury.

SEC. 3301. DEFINITIONS.

    In this title:
            (1) The term ``National Defense Stockpile'' means 
        the stockpile provided for in section 4 of the 
        Strategic and Critical Materials Stock Piling Act (50 
        U.S.C. 98c).
            (2) The term ``National Defense Stockpile 
        Transaction Fund'' means the fund in the Treasury of 
        the United States established under section 9(a) of the 
        Strategic and Critical Materials Stock Piling Act (50 
        U.S.C. 98h(a)).
            (3) The term ``Market Impact Committee'' means the 
        Market Impact Committee established under section 10(c) 
        of the Strategic and Critical Materials Stock Piling 
        Act (50 U.S.C. 98h-1(c)).

SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 
1998, the National Defense Stockpile Manager may obligate up to 
$73,000,000 of the funds in the National Defense Stockpile 
Transaction Fund for the authorized uses of such funds under 
section 9(b)(2) of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98h(b)(2)).
    (b) Additional Obligations.--The National Defense Stockpile 
Manager may obligate amounts in excess of the amount specified 
in subsection (a) if the National Defense Stockpile Manager 
notifies Congress that extraordinary or emergency conditions 
necessitate the additional obligations. The National Defense 
Stockpile Manager may make the additionalobligations described 
in the notification after the end of the 45-day period beginning on the 
date Congress receives the notification.
    (c) Limitations.--The authorities provided by this section 
shall be subject to such limitations as may be provided in 
appropriations Acts.

SEC. 3303. DISPOSAL OF BERYLLIUM COPPER MASTER ALLOY IN NATIONAL 
                    DEFENSE STOCKPILE.

    (a) Disposal Authorization.--Pursuant to section 5(b) of 
the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98d(b)), the National Defense Stockpile Manager may 
dispose of all beryllium copper master alloy from the National 
Defense Stockpile as part of continued efforts to modernize the 
Stockpile.
    (b) Precondition for Disposal.--Before beginning the 
disposal of beryllium copper master alloy under subsection (a), 
the National Defense Stockpile Manager shall certify to 
Congress that the disposal of beryllium copper master alloy 
will not adversely affect the capability of the National 
Defense Stockpile to supply the strategic and critical material 
needs of the United States.
    (c) Consultation With Market Impact Committee.--In 
disposing of beryllium copper master alloy under subsection 
(a), the National Defense Stockpile Manager shall consult with 
the Market Impact Committee to ensure that the disposal of 
beryllium copper master alloy does not disrupt the domestic 
beryllium industry.
    (d) Extended Sales Contracts.--The National Defense 
Stockpile Manager shall provide for the use of long-term sales 
contracts for the disposal of beryllium copper master alloy 
under subsection (a) so that the domestic beryllium industry 
can re-absorb this material into the market in a gradual and 
nondisruptive manner. However, no such contract shall provide 
for the disposal of beryllium copper master alloy over a period 
longer than eight years, beginning on the date of the 
commencement of the first contract under this section.
    (e) Relationship to Other Disposal Authority.--The disposal 
authority provided in subsection (a) is new disposal authority 
and is in addition to, and shall not affect, any other disposal 
authority provided by law regarding materials in the National 
Defense Stockpile.
    (f) Beryllium Copper Master Alloy Defined.--For purposes of 
this section, the term ``beryllium copper master alloy'' means 
an alloy of nominally four percent beryllium in copper.

SEC. 3304. DISPOSAL OF TITANIUM SPONGE IN NATIONAL DEFENSE STOCKPILE.

    (a) Disposal Required.--Subject to subsection (b), the 
National Defense Stockpile Manager shall dispose of 34,800 
short tons of titanium sponge contained in the National Defense 
Stockpile provided for in section 4 of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98c) and excess 
to stockpile requirements.
    (b) Consultation With Market Impact Committee.--In 
disposing of titanium sponge under subsection (a), the National 
Defense Stockpile Manager shall consult with the Market Impact 
Committee to ensure that the disposal of titanium sponge does 
not disrupt the domestic titanium industry.
    (c) Relationship to Other Disposal Authority.--The disposal 
authority provided in subsection (a) is new disposal authority 
and is in addition to, and shall not affect, any other disposal 
authority provided by law regarding materials in the National 
Defense Stockpile.

SEC. 3305. DISPOSAL OF COBALT IN NATIONAL DEFENSE STOCKPILE.

    (a) Disposal Required.--Subject to subsections (b) and (c), 
the President shall dispose of cobalt contained in the National 
Defense Stockpile so as to result in receipts to the United 
States in amounts equal to--
            (1) $20,000,000 during fiscal year 2003;
            (2) $30,000,000 during fiscal year 2004;
            (3) $34,000,000 during fiscal year 2005;
            (4) $34,000,000 during fiscal year 2006; and
            (5) $34,000,000 during fiscal year 2007.
    (b) Limitation on Disposal Quantity.--The total quantity of 
cobalt authorized for disposal by the President under 
subsection (a) may not exceed 14,058,014 pounds.
    (c) Minimization of Disruption and Loss.--The President may 
not dispose of cobalt under subsection (a) to the extent that 
the disposal will result in--
            (1) undue disruption of the usual markets of 
        producers, processors, and consumers of cobalt; or
            (2) avoidable loss to the United States.
    (d) Treatment of Receipts.--Notwithstanding section 9 of 
the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98h), funds received as result of the disposal of cobalt 
under subsection (a) shall be deposited into the general fund 
of the Treasury.
    (e) Relationship to Other Disposal Authority.--The disposal 
authority provided in subsection (a) is new disposal authority 
and is in addition to, and shall not affect, any other disposal 
authority provided by law regarding materials in the National 
Defense Stockpile.

SEC. 3306. REQUIRED PROCEDURES FOR DISPOSAL OF STRATEGIC AND CRITICAL 
                    MATERIALS.

    Section 6(b) of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98e(b)) is amended in the first sentence 
by striking out ``materials from the stockpile shall be made by 
formal advertising or competitive negotiation procedures.'' and 
inserting in lieu thereof ``strategic and critical materials 
from the stockpile shall be made in accordance with the next 
sentence.''.

SEC. 3307. RETURN OF SURPLUS PLATINUM FROM THE DEPARTMENT OF THE 
                    TREASURY.

    (a) Return of Platinum to Stockpile.--Subject to subsection 
(b), the Secretary of the Treasury, upon the request of the 
Secretary of Defense, shall return to the Secretary of Defense 
for sale or other disposition platinum of the National Defense 
Stockpile that has been loaned to the Department of the 
Treasury by the Secretary of Defense, acting as the stockpile 
manager. The quantity requested and required to be returned 
shall be any quantity that the Secretary of Defense determines 
appropriate for sale or other disposition.
    (b) Alternative Transfer of Funds.--The Secretary of the 
Treasury, with the concurrence of the Secretary of Defense, may 
transfer to the Secretary of Defense funds in a total amount 
that is equal to the fair market value of any platinum 
requested under subsection (a) and not returned. A transfer of 
funds under this subsection shall be a substitute for a return 
of platinum under subsection (a). Upon a transfer of funds as a 
substitute for a return of platinum, the platinum shall cease 
to be part of the National Defense Stockpile. A transfer of 
funds under this subsection shall be charged to any 
appropriation for the Department of the Treasury and shall be 
credited to the National Defense Stockpile Transaction Fund.
    (c) Responsibility for Costs.--The return of platinum under 
subsection (a) by the Secretary of the Treasury shall be made 
without the expenditure of any funds available to the 
Department of Defense. The Secretary of the Treasury shall be 
responsible for all costs incurred in connection with the 
return, such as transportation, storage, testing, refining, or 
casting costs.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
          year 1998.
Sec. 3403. Repeal of requirement to assign Navy officers to Office of 
          Naval Petroleum and Oil Shale Reserves.
Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 1 
          and 3.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    There is hereby authorized to be appropriated to the 
Secretary of Energy $117,000,000 for fiscal year 1998 for the 
purpose of carrying out activities under chapter 641 of title 
10, United States Code, relating to the naval petroleum 
reserves (as defined in section 7420(2) of such title). Funds 
appropriated pursuant to such authorization shall remain 
available until expended.

SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM DURING FISCAL 
                    YEAR 1998.

    Notwithstanding section 7430(b)(2) of title 10, United 
States Code, during fiscal year 1998, any sale of any part of 
the United States share of petroleum produced from Naval 
Petroleum Reserves Numbered 1, 2, and 3 shall be made at a 
price not less than 90 percent of the current sales price, as 
estimated by the Secretary of Energy, of comparable petroleum 
in the same area.

SEC. 3403. REPEAL OF REQUIREMENT TO ASSIGN NAVY OFFICERS TO OFFICE OF 
                    NAVAL PETROLEUM AND OIL SHALE RESERVES.

    Section 2 of Public Law 96-137 (42 U.S.C. 7156a) is 
repealed.

SEC. 3404. TRANSFER OF JURISDICTION, NAVAL OIL SHALE RESERVES NUMBERED 
                    1 AND 3.

    (a) Transfer Required.--Chapter 641 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 7439. Certain oil shale reserves: transfer of jurisdiction and 
                    petroleum exploration, development, and production

    ``(a) Transfer Required.--(1) Upon the enactment of this 
section, the Secretary of Energy shall transfer to the 
Secretary of the Interior administrative jurisdiction over all 
public domain lands included within Oil Shale Reserve Numbered 
1 and those public domain lands included within the undeveloped 
tracts of Oil Shale Reserve Numbered 3.
    ``(2) Not later than one year after the date of the 
enactment of this section, the Secretary of Energy shall 
transfer to the Secretary of the Interior administrative 
jurisdiction over those public domain lands included within the 
developed tract of Oil Shale Reserve Numbered 3, which consists 
of approximately 6,000 acres and 24 natural gas wells, together 
with pipelines and associated facilities.
    ``(3) Notwithstanding the transfer of jurisdiction, the 
Secretary of Energy shall continue to be responsible for all 
environmental restoration, waste management, and environmental 
compliance activities that are required under Federal and State 
laws with respect to conditions existing on the lands at the 
time of the transfer.
    ``(4) Upon the transfer to the Secretary of the Interior of 
jurisdiction over public domain lands under this subsection, 
the other provisions of this chapter shall cease to apply with 
respect to the transferred lands.
    ``(b) Authority To Lease.--(1) Beginning on the date of the 
enactment of this section, or as soon thereafter as 
practicable, the Secretary of the Interior shall enter into 
leases with one or more private entities for the purpose of 
exploration for, and development and production of, petroleum 
(other than in the form of oil shale) located on or in public 
domain lands in Oil Shale Reserves Numbered 1 and 3 (including 
the developed tract of Oil Shale Reserve Numbered 3). Any such 
lease shall be made in accordance with the requirements of the 
Mineral Leasing Act (30 U.S.C. 181 et seq.) regarding the lease 
of oil and gas lands and shall be subject to valid existing 
rights.
    ``(2) Notwithstanding the delayed transfer of the developed 
tract of Oil Shale Reserve Numbered 3 under subsection (a)(2), 
the Secretary of the Interior shall enter into a lease under 
paragraph (1) with respect to the developed tract before the 
end of the one-year period beginning on the date of the 
enactment of this section.
    ``(c) Management.--The Secretary of the Interior, acting 
through the Director of the Bureau of Land Management, shall 
manage the lands transferred under subsection (a) in accordance 
with the Federal Land Policy and Management Act of 1976 (43 
U.S.C. 1701 et seq.) and other laws applicable to the public 
lands.
    ``(d) Transfer of Existing Equipment.--The lease of lands 
by the Secretary of the Interior under this section may include 
the transfer, at fair market value, of any well, gathering 
line, or related equipment owned by the United States on the 
lands transferred under subsection (a) and suitable for use in 
the exploration, development, or production of petroleum on the 
lands.
    ``(e) Cost Minimization.--The cost of any environmental 
assessment required pursuant to the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) in connection with 
a proposed lease under this section shall be paid out of 
unobligated amounts available for administrative expenses of 
the Bureau of Land Management.
    ``(f) Treatment of Receipts.--(1) Notwithstanding section 
35 of the Mineral Leasing Act (30 U.S.C. 191), all moneys 
received during the period specified in paragraph (2) from a 
lease under this section (including moneys in the form of 
sales, bonuses, royalties (including interest charges collected 
under the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1701 et seq.)), and rentals) shall be covered into 
the Treasury of the United States and shall not be subject to 
distribution to the States pursuant to subsection (a) of such 
section 35. Subject to a specific authorization and 
appropriation for this purpose, such moneys may be used for 
reimbursement of environmental restoration, waste management, 
and environmental compliance costs incurred by the United 
States with respect to the lands transferred under subsection 
(a).
    ``(2) The period referred to in this subsection is the 
period beginning on the date of the enactment of this section 
and ending on the date on which the Secretary of Energy and the 
Secretary of the Interior jointly certify to Congress that the 
sum of the moneys deposited in the Treasury under paragraph (1) 
is equal to the total of the following:
            ``(A) The cost of all environmental restoration, 
        waste management, and environmental compliance 
        activities incurred by the United States with respect 
        to the lands transferred under subsection (a).
            ``(B) The cost to the United States to originally 
        install wells, gathering lines, and related equipment 
        on the transferred lands and any other cost incurred by 
        the United States with respect to the lands.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``7439. Certain oil shale reserves: transfer of jurisdiction and 
          petroleum exploration, development, and production.''.

                  TITLE XXXV--PANAMA CANAL COMMISSION

      Subtitle A--Authorization of Expenditures From Revolving Fund

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.

           Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to canal transition.

Part I--Transition Matters Relating to Commission Officers and Employees

Sec. 3521. Authority for the Administrator of the Commission to accept 
          appointment as the Administrator of the Panama Canal 
          Authority.
Sec. 3522. Post-Canal transfer personnel authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation of 
          Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for 
          Commission personnel no longer subject to Federal travel 
          regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance pay 
          for certain employees separated by Panama Canal Authority 
          after Canal Transfer Date.

Part II--Transition Matters Relating to Operation and Administration of 
                                  Canal

Sec. 3541. Establishment of procurement system and Board of Contract 
          Appeals.
Sec. 3542. Transactions with the Panama Canal Authority.
Sec. 3543. Time limitations on filing of claims for damages.
Sec. 3544. Tolls for small vessels.
Sec. 3545. Date of actuarial evaluation of FECA liability.
Sec. 3546. Appointment of notaries public.
Sec. 3547. Commercial services.
Sec. 3548. Transfer from President to Commission of certain regulatory 
          functions relating to employment classification appeals.
Sec. 3549. Enhanced printing authority.
Sec. 3550. Technical and conforming amendments.

     Subtitle A--Authorization of Expenditures From Revolving Fund

SEC. 3501. SHORT TITLE.

    This subtitle may be cited as the ``Panama Canal Commission 
Authorization Act for Fiscal Year 1998''.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

    (a) In General.--Subject to subsection (b), the Panama 
Canal Commission is authorized to use amounts in the Panama 
Canal Revolving Fund to make such expenditures within the 
limits of funds and borrowing authority available to it in 
accordance with law, and to make such contracts and 
commitments, as may be necessary under the Panama Canal Act of 
1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance, 
improvement, and administration of the Panama Canal for fiscal 
year 1998.
    (b) Limitations.--For fiscal year 1998, the Panama Canal 
Commission may expend from funds in the Panama Canal Revolving 
Fund not more than $85,000 for official reception and 
representation expenses, of which--
            (1) not more than $23,000 may be used for official 
        reception and representation expenses of the 
        Supervisory Board of the Commission;
            (2) not more than $12,000 may be used for official 
        reception and representation expenses of the Secretary 
        of the Commission; and
            (3) not more than $50,000 may be used for official 
        reception and representation expenses of the 
        Administrator of the Commission.

SEC. 3503. PURCHASE OF VEHICLES.

    Notwithstanding any other provision of law, the funds 
available to the Commission shall be available for the purchase 
and transportation to the Republic of Panama of passenger motor 
vehicles, the purchase price of which shall not exceed $22,000 
per vehicle.

SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

    Expenditures authorized under this subtitle may be made 
only in accordance with the Panama Canal Treaties of 1977 and 
any law of the United States implementing those treaties.

          Subtitle B--Facilitation of Panama Canal Transition

SEC. 3511. SHORT TITLE; REFERENCES.

    (a) Short Title.--This subtitle may be cited as the 
``Panama Canal Transition Facilitation Act of 1997''.
    (b) References.--Except as otherwise expressly provided, 
whenever in this subtitle an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a 
section or other provision of the Panama Canal Act of 1979 (22 
U.S.C. 3601 et seq.).

SEC. 3512. DEFINITIONS RELATING TO CANAL TRANSITION.

    Section 3 (22 U.S.C. 3602) is amended by adding at the end 
the following new subsection:
    ``(d) For purposes of this Act:
            ``(1) The term `Canal Transfer Date' means December 
        31, 1999, such date being the date specified in the 
        Panama Canal Treaty of 1977 for the transfer of the 
        Panama Canal from the United States of America to the 
        Republic of Panama.
            ``(2) The term `Panama Canal Authority' means the 
        entity created by the Republic of Panama to succeed the 
        Panama Canal Commission as of the Canal Transfer 
        Date.''.

    PART I--TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND 
                               EMPLOYEES

SEC. 3521. AUTHORITY FOR THE ADMINISTRATOR OF THE COMMISSION TO ACCEPT 
                    APPOINTMENT AS THE ADMINISTRATOR OF THE PANAMA 
                    CANAL AUTHORITY.

    (a) Authority for Dual Role.--Section 1103 (22 U.S.C. 3613) 
is amended by adding at the end the following new subsection:
    ``(c) The Congress consents, for purposes of the 8th clause 
of article I, section 9 of the Constitution of the United 
States, to the acceptance by the individual serving as 
Administrator ofthe Commission of appointment by the Republic 
of Panama to the position of Administrator of the Panama Canal 
Authority. Such consent is effective only if that individual, while 
serving in both such positions, serves as Administrator of the Panama 
Canal Authority without compensation, except for payments by the 
Republic of Panama of travel and entertainment expenses, including per 
diem payments.''.
    (b) Waiver of Ethics and Reporting Requirements.--Such 
section is further amended by adding at the end the following 
new subsection:
    ``(d) If before the Canal Transfer Date the Republic of 
Panama appoints as the Administrator of the Panama Canal 
Authority the individual serving as the Administrator of the 
Commission and if that individual accepts the appointment--
            ``(1) during any period during which that 
        individual serves as both Administrator of the 
        Commission and the Administrator of the Panama Canal 
        Authority--
                    ``(A) the Foreign Agents Registration Act 
                of 1938, as amended (22 U.S.C. 611 et seq.), 
                shall not apply to that individual with respect 
                to service as the Administrator of the Panama 
                Canal Authority;
                    ``(B) that individual, with respect to 
                participation in any particular matter as the 
                Administrator of the Panama Canal Commission, 
                is not subject to section 208(a) of title 18, 
                United States Code, insofar as that section 
                would otherwise apply to that matter only 
                because the matter will have a direct and 
                predictable effect on the financial interest of 
                the Panama Canal Authority;
                    ``(C) that individual is not subject to 
                sections 203 and 205 of title 18, United States 
                Code, with respect to official acts performed 
                as an agent or attorney for or otherwise 
                representing the Panama Canal Authority; and
                    ``(D) that individual is not subject to 
                sections 501(a) and 502(a)(4) of the Ethics in 
                Government Act of 1978 (5 U.S.C. App.), with 
                respect to compensation received for, and 
                service in, the position of Administrator of 
                the Panama Canal Authority; and
            ``(2) effective upon termination of the 
        individual's appointment as Administrator of the Panama 
        Canal Commission at noon on the Canal Transfer Date, 
        that individual is not subject to section 207 of title 
        18, United States Code, with respect to acts done in 
        carrying out official duties as Administrator of the 
        Panama Canal Authority.''.

SEC. 3522. POST-CANAL TRANSFER PERSONNEL AUTHORITIES.

    (a) Waiver of Certain Post-employment Restrictions for 
Commission Personnel Becoming Employees of the Panama Canal 
Authority.--Section 1112 (22 U.S.C. 3622) is amended by adding 
at the end the following new subsection:
    ``(e)(1) Section 207 of title 18, United States Code, does 
not apply to a covered individual with respect to acts done in 
carrying out official duties as an officer or employee of the 
Panama Canal Authority.
    ``(2) For purposes of paragraph (1), a covered individual 
is an officer or employee of the Panama Canal Authority who was 
an officer or employee of the Commission (other than the 
Administrator) and whose employment with the Commission 
terminated at noon on the Canal Transfer Date.
    ``(3) This subsection is effective as of the Canal Transfer 
Date.''.
    (b) Consent of Congress for Acceptance by Reserve and 
Retired Members of the Uniformed Services of Employment by 
Panama Canal Authority.--Such section is further amended by 
adding after subsection (e), as added by subsection (a), the 
following new subsection:
    ``(f)(1) The Congress consents to the following persons 
accepting civil employment (and compensation for that 
employment) with the Panama Canal Authority for which the 
consent of the Congress is required by the last paragraph of 
section 9 of article I of the Constitution of the United 
States, relatingto acceptance of emoluments, offices, or titles 
from a foreign government:
            ``(A) Retired members of the uniformed services.
            ``(B) Members of a reserve component of the armed 
        forces.
            ``(C) Members of the Commissioned Reserve Corps of 
        the Public Health Service.
    ``(2) The consent of the Congress under paragraph (1) is 
effective without regard to subsection (b) of section 908 of 
title 37, United States Code (relating to approval required for 
employment of Reserve and retired members by foreign 
governments).''.

SEC. 3523. ENHANCED AUTHORITY OF COMMISSION TO ESTABLISH COMPENSATION 
                    OF COMMISSION OFFICERS AND EMPLOYEES.

    (a) Repeal of Limitations on Commission Authority.--The 
following provisions are repealed:
            (1) Section 1215 (22 U.S.C. 3655), relating to 
        basic pay.
            (2) Section 1219 (22 U.S.C. 3659), relating to 
        salary protection upon conversion of pay rate.
            (3) Section 1225 (22 U.S.C. 3665), relating to 
        minimum level of pay and minimum annual increases.
    (b) Savings Provision.--Section 1202 (22 U.S.C. 3642) is 
amended by adding at the end the following new subsection:
    ``(c) In the case of an individual who is an officer or 
employee of the Commission on the day before the date of the 
enactment of the Panama Canal Transition Facilitation Act of 
1997 and who has not had a break in service with the Commission 
since that date, the rate of basic pay for that officer or 
employee on or after that date may not be less than the rate in 
effect for that officer or employee on the day before that date 
of enactment except--
            ``(1) as provided in a collective bargaining 
        agreement;
            ``(2) as a result of an adverse action against the 
        officer or employee; or
            ``(3) pursuant to a voluntary demotion.''.
    (c) Cross-Reference Amendments.--(1) Section 1216 (22 
U.S.C. 3656) is amended by striking out ``1215'' and inserting 
in lieu thereof ``1202''.
    (2) Section 1218 (22 U.S.C. 3658) is amended by striking 
out ``1215'' and ``1217'' and inserting in lieu thereof 
``1202'' and ``1217(a)'', respectively.
    (d) Nonapplicability to Agencies in Panama Other Than 
Panama Canal Commission.--Section 1212(b)(3) (22 U.S.C. 
3652(b)(3)) is amended by striking out ``or the Panama Canal 
Act Amendments of 1996'' and inserting in lieu thereof ``, the 
Panama Canal Act Amendments of 1996 (subtitle B of title XXXV 
of Public Law 104-201; 110 Stat. 2860), or the Panama Canal 
Transition Facilitation Act of 1997''.

SEC. 3524. TRAVEL, TRANSPORTATION, AND SUBSISTENCE EXPENSES FOR 
                    COMMISSION PERSONNEL NO LONGER SUBJECT TO FEDERAL 
                    TRAVEL REGULATION.

    (a) Repeal of Applicability of Title 5 Provisions.--(1) 
Section 1210 (22 U.S.C. 3650) is amended by striking out 
subsections (a), (b), and (c).
    (2) Section 1224 (22 U.S.C. 3664) is amended--
            (A) by striking out paragraph (10); and
            (B) by redesignating paragraphs (11) through (20) 
        as paragraphs (10) through (19), respectively.
    (b) Conforming Amendments.--(1) Section 1210 is further 
amended--
            (A) by redesignating subsection (d)(1) as 
        subsection (a) and in that subsection striking out 
        ``paragraph (2)'' and inserting in lieu thereof 
        ``subsection (b)''; and
            (B) by redesignating subsection (d)(2) as 
        subsection (b) and in that subsection--
                    (i) striking out ``Notwithstanding 
                paragraph (1), an'' and inserting in lieu 
                thereof ``An''; and
                    (ii) striking out ``referred to in 
                paragraph (1)'' and inserting in lieu thereof 
                ``who is a citizen of the Republic of Panama''.
    (2) The heading of such section is amended to read as 
follows:

                        ``air transportation''.

    (c) Effective Date.--The amendments made by this section 
shall take effect on January 1, 1999.

SEC. 3525. ENHANCED RECRUITMENT AND RETENTION AUTHORITIES.

    (a) Recruitment, Relocation, and Retention Bonuses.--
Section 1217 (22 U.S.C. 3657) is amended--
            (1) by redesignating subsection (c) as subsection 
        (e);
            (2) in subsection (e) (as so redesignated), by 
        striking out ``for the same or similar work performed 
        in the United States by individuals employed by the 
        Government of the United States'' and inserting in lieu 
        thereof ``of the individual to whom the compensation is 
        paid''; and
            (3) by inserting after subsection (b) the following 
        new subsections:
    ``(c)(1) The Commission may pay a recruitment bonus to an 
individual who is newly appointed to a position with the 
Commission, or a relocation bonus to an employee of the 
Commission who must relocate to accept a position, if the 
Commission determines that the Commission would be likely, in 
the absence of such a bonus, to have difficulty in filling the 
position.
    ``(2) A recruitment or relocation bonus may be paid to an 
employee under this subsection only if the employee enters into 
an agreement with the Commission to complete a period of 
employment established in the agreement. If the employee 
voluntarily fails to complete such period of employment or is 
separated from service in such employment as a result of an 
adverse action before the completion of such period, the 
employee shall repay the entire amount of the bonus.
    ``(3) A recruitment or relocation bonus under this 
subsection may be paid as a lump sum. A bonus under this 
subsection may not be considered to be part of the basic pay of 
an employee.
    ``(d)(1) The Commission may pay a retention bonus to an 
employee of the Commission if the Commission determines that--
            ``(A) the employee has unusually high or unique 
        qualifications and those qualifications make it 
        essential for the Commission to retain the employee for 
        a period specified by the Commission ending not later 
        than the Canal Transfer Date, or the Commission 
        otherwise has a special need for the services of the 
        employee making it essential for the Commission to 
        retain the employee for a period specified by the 
        Commission ending not later than the Canal Transfer 
        Date; and
            ``(B) the employee would be likely to leave 
        employment with the Commission before the end of that 
        period if the retention bonus is not paid.
    ``(2) A retention bonus under this subsection--
            ``(A) shall be in a fixed amount;
            ``(B) shall be paid on a pro rata basis (over the 
        period specified by the Commission as essential for the 
        retention of the employee), with such payments to be 
        made at the same time and in the same manner as basic 
        pay; and
            ``(C) may not be considered to be part of the basic 
        pay of an employee.
    ``(3) A decision by the Commission to exercise or to not 
exercise the authority to pay a bonus under this subsection 
shall not be subject to review under any statutory procedure or 
any agency or negotiated grievance procedure except under any 
of the laws referred to in section 2302(d) of title 5, United 
States Code.''.
    (b) Educational Services.--Section 1321(e)(2) (22 U.S.C. 
3731(e)(2)) is amended by striking out ``and persons'' and 
inserting in lieu thereof ``, to other Commission employees 
when determined by the Commission to be necessary for their 
recruitment or retention, and to other persons''.

SEC. 3526. TRANSITION SEPARATION INCENTIVE PAYMENTS.

    Chapter 2 of title I (22 U.S.C. 3641 et seq.) is amended by 
adding at the end of subchapter III the following new section:

               ``transition separation incentive payments

    ``Sec. 1233. (a) In applying to the Commission and 
employees of the Commission the provisions of section 663 of 
the Treasury, Postal Service, and General Government 
Appropriations Act, 1997 (as contained in section 101(f) of 
division A of Public Law 104-208; 110 Stat. 3009-383), relating 
to voluntary separation incentives for employees of certain 
Federal agencies (in this section referred to as `section 
663')--
            ``(1) the term `employee' shall mean an employee of 
        the Commission who has served in the Republic of Panama 
        in a position with the Commission for a continuous 
        period of at least three years immediately before the 
        employee's separation under an appointment without time 
        limitation and who is covered under the Civil Service 
        Retirement System or the Federal Employees' Retirement 
        System under subchapter III of chapter 83 or chapter 
        84, respectively, of title 5, United States Code, other 
        than--
                    ``(A) an employee described in any of 
                subparagraphs (A) through (F) of subsection 
                (a)(2) of section 663; or
                    ``(B) an employee of the Commission who, 
                during the 24-month period preceding the date 
                of separation, has received a recruitment or 
                relocation bonus under section 1217(c) of this 
                Act or who, within the 12-month period 
                preceding the date of separation, received a 
                retention bonus under section 1217(d) of this 
                Act;
            ``(2) the strategic plan under subsection (b) of 
        section 663 shall include (in lieu of the matter 
        specified in subsection (b)(2) of that section)--
                    ``(A) the positions to be affected, 
                identified by occupational category and grade 
                level;
                    ``(B) the number and amounts of separation 
                incentive payments to be offered; and
                    ``(C) a description of how such incentive 
                payments will facilitate the successful 
                transfer of the Panama Canal to the Republic of 
                Panama;
            ``(3) a separation incentive payment under section 
        663 may be paid to a Commission employee only to the 
        extent necessary to facilitate the successful transfer 
        of the Panama Canal by the United States of America to 
        the Republic of Panama as required by the Panama Canal 
        Treaty of 1977;
            ``(4) such a payment--
                    ``(A) may be in an amount determined by the 
                Commission not to exceed $25,000; and
                    ``(B) may be made (notwithstanding the 
                limitation specified in subsection (c)(2)(D) of 
                section 663) in the case of an eligible 
                employee who voluntarily separates (whether by 
                retirement or resignation) during the 90-day 
                period beginning on the date of the enactment 
                of this section or during the period beginning 
                on October 1, 1998, and ending on December 31, 
                1998;
            ``(5) in the case of not more than 15 employees who 
        (as determined by the Commission) are unwilling to work 
        for the Panama Canal Authority after the Canal Transfer 
        Date and who occupy critical positions for which (as 
        determined by the Commission) at least two years of 
        experience is necessary to ensure that seasoned 
        managers are in place on and after the Canal Transfer 
        Date, such a payment (notwithstanding paragraph (4))--
                    ``(A) may be in an amount determined by the 
                Commission not to exceed 50 percent of the 
                basic pay of the employee; and
                    ``(B) may be made (notwithstanding the 
                limitation specified in subsection (c)(2)(D) of 
                section 663) in the case of such an employee 
                who voluntarily separates (whether by 
                retirement or resignation) during the 90-day 
                period beginning on the date of the enactment 
                of this section; and
            ``(6) the provisions of subsection (f) of section 
        663 shall not apply.
    ``(b) A decision by the Commission to exercise or to not 
exercise the authority to pay a transition separation incentive 
under this section shall not be subject to review under any 
statutory procedure or any agency or negotiated grievance 
procedure except under any of the laws referred to in section 
2302(d) of title 5, United States Code.''.

SEC. 3527. LABOR-MANAGEMENT RELATIONS.

    Section 1271 (22 U.S.C. 3701) is amended by adding at the 
end the following new subsection:
    ``(c)(1) This subsection applies to any matter that becomes 
the subject of collective bargaining between the Commission and 
the exclusive representative for any bargaining unit of 
employees of the Commission during the period beginning on the 
date of the enactment of this subsection and ending on the 
Canal Transfer Date.
    ``(2)(A) The resolution of impasses resulting from 
collective bargaining between the Commission and any such 
exclusive representative during that period shall be conducted 
in accordance with such procedures as may be mutually agreed 
upon between the Commission and the exclusive representative 
(without regard to any otherwise applicable provisions of 
chapter 71 of title 5, United States Code). Such mutually 
agreed upon procedures shall become effective upon transmittal 
by the Chairman of the Supervisory Board of the Commission to 
the Congress of notice of the agreement to use those procedures 
and a description of those procedures.
    ``(B) The Federal Services Impasses Panel shall not have 
jurisdiction to resolve any impasse between the Commission and 
any such exclusive representative in negotiations over a 
procedure for resolving impasses.
    ``(3) If the Commission and such an exclusive 
representative do not reach an agreement concerning a procedure 
for resolving impasses with respect to a bargaining unit and 
transmitnotice of the agreement under paragraph (2) on or 
before July 1, 1998, the following shall be the procedure by which 
collective bargaining impasses between the Commission and the exclusive 
representative for that bargaining unit shall be resolved:
            ``(A) If bargaining efforts do not result in an 
        agreement, either party may timely request the Federal 
        Mediation and Conciliation Service to assist in 
        achieving an agreement.
            ``(B) If an agreement is not reached within 45 days 
        after the date on which either party requests the 
        assistance of the Federal Mediation and Conciliation 
        Service in writing (or within such shorter period as 
        may be mutually agreed upon by the parties), the 
        parties shall be considered to be at an impasse and the 
        Federal Mediation and Conciliation Service shall 
        immediately notify the Federal Services Impasses Panel 
        of the Federal Labor Relations Authority, which shall 
        decide the impasse.
            ``(C) If the Federal Services Impasses Panel fails 
        to issue a decision within 90 days after the date on 
        which notice under subparagraph (B) is received by the 
        Panel (or within such shorter period as may be mutually 
        agreed upon by the parties), the efforts of the Panel 
        shall be terminated.
            ``(D) In such a case, the Chairman of the Panel (or 
        another member in the absence of the Chairman) shall 
        immediately determine the matter by a drawing 
        (conducted in such manner as the Chairman (or, in the 
        absence of the Chairman, such other member) determines 
        appropriate) between the last offer of the Commission 
        and the last offer of the exclusive representative, 
        with the offer chosen through such drawing becoming the 
        binding resolution of the matter.
    ``(4) In the case of a notice of agreement described in 
paragraph (2)(A) that is transmitted to the Congress as 
described in the second sentence of that paragraph after July 
1, 1998, the impasse resolution procedures covered by that 
notice shall apply to any impasse between the Commission and 
the other party to the agreement that is unresolved on the date 
on which that notice is transmitted to the Congress.''.

SEC. 3528. AVAILABILITY OF PANAMA CANAL REVOLVING FUND FOR SEVERANCE 
                    PAY FOR CERTAIN EMPLOYEES SEPARATED BY PANAMA CANAL 
                    AUTHORITY AFTER CANAL TRANSFER DATE.

    (a) Availability of Revolving Fund.--Section 1302(a) (22 
U.S.C. 3712(a)) is amended by adding at the end the following 
new paragraph:
            ``(10) Payment to the Panama Canal Authority, not 
        later than the Canal Transfer Date, of such amount as 
        is computed by the Commission to be the future amount 
        of severance pay to be paid by the Panama Canal 
        Authority to employees whose employment with the 
        Authority is terminated, to the extent that such 
        severance pay is attributable to periods of service 
        performed with the Commission before the Canal Transfer 
        Date (and assuming for purposes of such computation 
        that the Panama Canal Authority, in paying severance 
        pay to terminated employees, will provide for crediting 
        of periods of service with the Commission).''.
    (b) Stylistic Amendments.--Such section is further 
amended--
            (1) by striking out ``for--'' in the matter 
        preceding paragraph (1) and inserting in lieu thereof 
        ``for the following purposes:'';
            (2) by capitalizing the initial letter of the first 
        word in each of paragraphs (1) through (9);
            (3) by striking out the semicolon at the end of 
        each of paragraphs (1) through (7) and inserting in 
        lieu thereof a period; and
            (4) by striking out ``; and'' at the end of 
        paragraph (8) and inserting in lieu thereof a period.

PART II--TRANSITION MATTERS RELATING TO OPERATION AND ADMINISTRATION OF 
                                 CANAL

SEC. 3541. ESTABLISHMENT OF PROCUREMENT SYSTEM AND BOARD OF CONTRACT 
                    APPEALS.

    Title III of the Panama Canal Act of 1979 (22 U.S.C. 3601 
et seq.) is amended by inserting after the title heading the 
following new chapter:

                        ``Chapter 1--Procurement


                          ``procurement system


    ``Sec. 3101. (a) Panama Canal Acquisition Regulation.--(1) 
The Commission shall establish by regulation a comprehensive 
procurement system. The regulation shall be known as the 
`Panama Canal Acquisition Regulation' (in this section referred 
to as the `Regulation') and shall provide for the procurement 
of goods and services by the Commission in a manner that--
            ``(A) applies the fundamental operating principles 
        and procedures in the Federal Acquisition Regulation;
            ``(B) uses efficient commercial standards of 
        practice; and
            ``(C) is suitable for adoption and uninterrupted 
        use by the Republic of Panama after the Canal Transfer 
        Date.
    ``(2) The Regulation shall contain provisions regarding the 
establishment of the Panama Canal Board of Contract Appeals 
described in section 3102.
    ``(b) Supplement to Regulation.--The Commission shall 
develop a Supplement to the Regulation (in this section 
referred to as the `Supplement') that identifies both the 
provisions of Federal law applicable to procurement of goods 
and services by the Commission and the provisions of Federal 
law waived by the Commission under subsection (c).
    ``(c) Waiver Authority.--(1) Subject to paragraph (2), the 
Commission shall determine which provisions of Federal law 
should not apply to procurement by the Commission and may waive 
those laws for purposes of the Regulation and Supplement.
    ``(2) For purposes of paragraph (1), the Commission may not 
waive--
            ``(A) section 27 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 423);
            ``(B) the Contract Disputes Act of 1978 (41 U.S.C. 
        601 et seq.), other than section 10(a) of such Act (41 
        U.S.C. 609(a)); or
            ``(C) civil rights, environmental, or labor laws.
    ``(d) Consultation With Administrator for Federal 
Procurement Policy.--In establishing the Regulation and 
developing the Supplement, the Commission shall consult with 
the Administrator for Federal Procurement Policy.
    ``(e) Effective Date.--The Regulation and the Supplement 
shall take effect on the date of publication in the Federal 
Register, or January 1, 1999, whichever is earlier.


                ``panama canal board of contract appeals


    ``Sec. 3102. (a) Establishment.--(1) The Secretary of 
Defense, in consultation with the Commission, shall establish a 
board of contract appeals, to be known as the Panama Canal 
Board of Contract Appeals, in accordance with section 8 of the 
Contract Disputes Act of 1978 (41 U.S.C. 607). Except as 
otherwise provided by this section, the Panama Canal Board of 
Contract Appeals (in this section referred to as the `Board') 
shall be subject to the Contract Disputes Act of 1978 (41 
U.S.C. 601 et seq.) in the same manner as any other agency 
board of contract appeals established under that Act.
    ``(2) The Board shall consist of three members. At least 
one member of the Board shall be licensed to practice law in 
the Republic of Panama. Individuals appointed to the Board 
shall take an oath of office, the form of which shall be 
prescribed by the Secretary of Defense.
    ``(b) Exclusive Jurisdiction To Decide Appeals.--
Notwithstanding section 10(a)(1) of the Contract Disputes Act 
of 1978 (41 U.S.C. 609(a)(1)) or any other provision of law, 
the Board shall have exclusive jurisdiction to decide an appeal 
from a decision of a contracting officer under section 8(d) of 
such Act (41 U.S.C. 607(d)).
    ``(c) Exclusive Jurisdiction To Decide Protests.--The Board 
shall decide protests submitted to it under this subsection by 
interested parties in accordance with subchapter V of title 31, 
United States Code. Notwithstanding section 3556 of that title, 
section 1491(b) of title 28, United States Code, and any other 
provision of law, the Board shall have exclusive jurisdiction 
to decide such protests. For purposes of this subsection--
            ``(1) except as provided in paragraph (2), each 
        reference to the Comptroller General in sections 3551 
        through 3555 of title 31, United States Code, is deemed 
        to be a reference to the Board;
            ``(2) the reference to the Comptroller General in 
        section 3553(d)(3)(C)(ii) of such title is deemed to be 
        a reference to both the Board and the Comptroller 
        General;
            ``(3) the report required by paragraph (1) of 
        section 3554(e) of such title shall be submitted to the 
        Comptroller General as well as the committees listed in 
        such paragraph;
            ``(4) the report required by paragraph (2) of such 
        section shall be submitted to the Comptroller General 
        as well as Congress; and
            ``(5) section 3556 of such title shall not apply to 
        the Board, but nothing in this subsection shall affect 
        the right of an interested party to file a protest with 
        the appropriate contracting officer.
    ``(d) Procedures.--The Board shall prescribe such 
procedures as may be necessary for the expeditious decision of 
appeals and protests under subsections (b) and (c).
    ``(e) Commencement.--The Board shall begin to function as 
soon as it has been established and has prescribed procedures 
under subsection (d), but not later than January 1, 1999.
    ``(f) Transition.--The Board shall have jurisdiction under 
subsection (b) and (c) over any appeals and protests filed on 
or after the date on which the Board begins to function. Any 
appeals and protests filed before such date shall remain before 
the forum in which they were filed.
    ``(g) Other Functions.--The Board may perform functions 
similar to those described in this section for such other 
matters or activities of the Commission as the Commission may 
determine and in accordance with regulations prescribed by the 
Commission.''.

SEC. 3542. TRANSACTIONS WITH THE PANAMA CANAL AUTHORITY.

    Section 1342 (22 U.S.C. 3752) is amended--
            (1) by designating the text of the section as 
        subsection (a); and
            (2) by adding at the end the following new 
        subsections:
    ``(b) The Commission may provide office space, equipment, 
supplies, personnel, and other in-kind services to the Panama 
Canal Authority on a nonreimbursable basis.
    ``(c) Any executive department or agency of the United 
States may, on a reimbursable basis, provide to the Panama 
Canal Authority materials, supplies, equipment, work, or 
services requested by the Panama Canal Authority, at such rates 
as may be agreed upon by that department or agency and the 
Panama Canal Authority.''.

SEC. 3543. TIME LIMITATIONS ON FILING OF CLAIMS FOR DAMAGES.

    (a) Filing of Administrative Claims With Commission.--
Sections 1411(a) (22 U.S.C. 3771(a)) and 1412 (22 U.S.C. 3772) 
are each amended in the last sentence by striking out ``within 
2 years after'' and all that follows through ``of 1985,'' and 
inserting in lieu thereof ``within one year after the date of 
the injury or the date of the enactment of the Panama Canal 
Transition Facilitation Act of 1997,''.
    (b) Filing of Judicial Actions.--The penultimate sentence 
of section 1416 (22 U.S.C. 3776) is amended--
            (1) by striking out ``one year'' the first place it 
        appears and inserting in lieu thereof ``180 days''; and
            (2) by striking out ``claim, or'' and all that 
        follows through ``of 1985,'' and inserting in lieu 
        thereof ``claim or the date of the enactment of the 
        Panama Canal Transition Facilitation Act of 1997,''.

SEC. 3544. TOLLS FOR SMALL VESSELS.

    Section 1602(a) (22 U.S.C. 3792(a)) is amended--
            (1) in the first sentence, by striking out ``supply 
        ships, and yachts'' and inserting in lieu thereof ``and 
        supply ships''; and
            (2) by adding at the end the following new 
        sentence: ``Tolls for small vessels (including yachts), 
        as defined by the Commission, may be set at rates 
        determined by the Commission without regard to the 
        preceding provisions of this subsection.''.

SEC. 3545. DATE OF ACTUARIAL EVALUATION OF FECA LIABILITY.

    Section 5(a) of the Panama Canal Commission Compensation 
Fund Act of 1988 (22 U.S.C. 3715c(a)) is amended by striking 
out ``Upon the termination of the Panama Canal Commission'' and 
inserting in lieu thereof ``By March 31, 1998''.

SEC. 3546. APPOINTMENT OF NOTARIES PUBLIC.

    Section 1102a (22 U.S.C. 3612a) is amended--
            (1) by redesignating subsection (g) as subsection 
        (h); and
            (2) by inserting after subsection (f) the following 
        new subsection:
    ``(g)(1) The Commission may appoint any United States 
citizen to have the general powers of a notary public to 
perform, on behalf of Commission employees and their dependents 
outside the United States, any notarial act that a notary 
public is required or authorized to perform within the United 
States. Unless an earlier expiration is provided by the terms 
of the appointment, any such appointment shall expire three 
months after the Canal Transfer Date.
    ``(2) Every notarial act performed by a person acting as a 
notary under paragraph (1) shall be as valid, and of like force 
and effect within the United States, as if executed by or 
before a duly authorized and competent notary public in the 
United States.
    ``(3) The signature of any person acting as a notary under 
paragraph (1), when it appears with the title of that person's 
office, is prima facie evidence that the signature is genuine, 
that the person holds the designated title, and that the person 
is authorized to perform a notarial act.''.

SEC. 3547. COMMERCIAL SERVICES.

    Section 1102b (22 U.S.C. 3612b) is amended by adding at the 
end the following new subsection:
    ``(e) The Commission may conduct and promote commercial 
activities related to the management, operation, or maintenance 
of the Panama Canal. Any such commercial activity shall be 
carried out consistent with the Panama Canal Treaty of 1977 and 
related agreements.''.

SEC. 3548. TRANSFER FROM PRESIDENT TO COMMISSION OF CERTAIN REGULATORY 
                    FUNCTIONS RELATING TO EMPLOYMENT CLASSIFICATION 
                    APPEALS.

    Sections 1221(a) and 1222(a) (22 U.S.C. 3661(a), 3662(a)) 
are amended by striking out ``President'' and inserting in lieu 
thereof ``Commission''.

SEC. 3549. ENHANCED PRINTING AUTHORITY.

    Section 1306(a) (22 U.S.C. 3714b(a)) is amended by striking 
out ``Section 501'' and inserting in lieu thereof ``Sections 
501 through 517 and 1101 through 1123''.

SEC. 3550. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Clerical Amendments.--The table of contents in section 
1 is amended--
            (1) by striking out the item relating to section 
        1210 and inserting in lieu thereof the following:

``Sec. 1210. Air transportation.'';

            (2) by striking out the items relating to sections 
        1215, 1219, and 1225;
            (3) by inserting after the item relating to section 
        1232 the following new item:

``Sec. 1233. Transition separation incentive payments.'';

        and
            (4) by inserting after the item relating to the 
        heading of title III the following:

                        ``Chapter 1--Procurement

``Sec. 3101. Procurement system.
``Sec. 3102. Panama Canal Board of Contract Appeals.''.

    (b) Amendment To Reflect Prior Change in Compensation of 
Administrator.--Section 5315 of title 5, United States Code, is 
amended by striking out the following:
            ``Administrator of the Panama Canal Commission.''.
    (c) Amendments To Reflect Change in Travel and 
Transportation Expenses Authority.--(1) Section 5724(a)(3) of 
title 5, United States Code, is amended by striking out ``, the 
Commonwealth of Puerto Rico,'' and all that follows through 
``Panama Canal Act of 1979'' and inserting in lieu thereof ``or 
the Commonwealth of Puerto Rico''.
    (2) Section 5724a(j) of such title is amended--
            (A) by inserting ``and'' after ``Northern Mariana 
        Islands,''; and
            (B) by striking out ``United States, and'' and all 
        that follows through the period at the end and 
        inserting in lieu thereof ``United States.''.
    (3) The amendments made by this subsection shall take 
effect on January 1, 1999.
    (d) Miscellaneous Technical Amendments.--
            (1) Section 3(b) (22 U.S.C. 3602(b)) is amended by 
        striking out ``the Canal Zone Code'' and all that 
        follows through ``other laws'' the second place it 
        appears and inserting in lieu thereof ``laws of the 
        United States and regulations issued pursuant to such 
        laws''.
            (2)(A) The following provisions are each amended by 
        striking out ``the effective date of this Act'' and 
        inserting in lieu thereof ``October 1, 1979'': sections 
        3(b), 3(c), 1112(b), and 1321(c)(1).
            (B) Section 1321(c)(2) is amended by striking out 
        ``such effective date'' and inserting in lieu thereof 
        ``October 1, 1979''.
            (C) Section 1231(c)(3)(A) (22 U.S.C. 3671(c)(3)(A)) 
        is amended by striking out ``the day before the 
        effective date of this Act'' and inserting in lieu 
        thereof ``September 30, 1979''.
            (3) Section 1102a(h), as redesignated by section 
        3546(1), is amended by striking out ``section 1102B'' 
        and inserting in lieu thereof ``section 1102b''.
            (4) Section 1110(b)(2) (22 U.S.C. 3620(b)(2)) is 
        amended by striking out ``section 16 of the Act of 
        August 1, 1956 (22 U.S.C. 2680a),'' and inserting in 
        lieu thereof ``section 207 of the Foreign Service Act 
        of 1980 (22 U.S.C. 3927)''.
            (5) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is 
        amended by striking out ``as last in effect before the 
        effective date of section 3530 of the Panama Canal Act 
        Amendments of 1996'' and inserting in lieu thereof ``as 
        in effect on September 22, 1996''.
            (6) Section 1243(c)(2) (22 U.S.C. 3681(c)(2)) is 
        amended by striking out ``retroactivity'' and inserting 
        in lieu thereof ``retroactively''.
            (7) Section 1341(f) (22 U.S.C. 3751(f)) is amended 
        by striking out ``sections 1302(c)'' and inserting in 
        lieu thereof ``sections 1302(b)''.

                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1998.
Sec. 3602. Repeal of obsolete annual report requirement concerning 
          relative cost of shipbuilding in the various coastal districts 
          of the United States.
Sec. 3603. Provisions relating to maritime security fleet program.
Sec. 3604. Authority to utilize replacement vessels and capacity.
Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.
Sec. 3606. Determination of gross tonnage for purposes of tank vessel 
          double hull requirements.

SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1998.

    Funds are hereby authorized to be appropriated for fiscal 
year 1998, to be available without fiscal year limitation if so 
provided in appropriations Act, for the use of the Department 
of Transportation for the Maritime Administration as follows:
            (1) For expenses necessary for operations and 
        training activities, $70,000,000.
            (2) For expenses under the loan guarantee program 
        authorized by title XI of the Merchant Marine Act, 1936 
        (46 U.S.C. App. 1271 et seq.), $39,000,000 of which--
                    (A) $35,000,000 is for the cost (as defined 
                in section 502(5) of the Federal Credit Reform 
                Act of 1990 (2 U.S.C. 661a(5))) of loan 
                guarantees under the program; and
                    (B) $4,000,000 is for administrative 
                expenses related to loan guarantee commitments 
                under the program.

SEC. 3602. REPEAL OF OBSOLETE ANNUAL REPORT REQUIREMENT CONCERNING 
                    RELATIVE COST OF SHIPBUILDING IN THE VARIOUS 
                    COASTAL DISTRICTS OF THE UNITED STATES.

    (a) Repeal.--Section 213 of the Merchant Marine Act, 1936 
(46 U.S.C. App. 1123), is amended by striking out paragraph 
(c).
    (b) Conforming Amendments.--Such section is further 
amended--
            (1) by striking out ``on--'' in the matter 
        preceding paragraph (a) and inserting in lieu thereof 
        ``on the following:'';
            (2) by redesignating paragraphs (a) and (b) as 
        paragraphs (1) and (2), respectively;
            (3) by striking out the semicolon at the end of 
        each of those paragraphs and inserting in lieu thereof 
        a period; and
            (4) by realigning those paragraphs so as to be 
        indented 2 ems from the left margin.

SEC. 3603. PROVISIONS RELATING TO MARITIME SECURITY FLEET PROGRAM.

    (a) Authority of Contractors To Operate Self-Propelled Tank 
Vessels in Noncontiguous Domestic Trades.--Section 656(b) of 
the Merchant Marine Act, 1936 (46 U.S.C. App. 1187e(b)) is 
amended by inserting ``(1)'' after ``(b)'', and by adding at 
the end the following new paragraph:
    ``(2) Subsection (a) shall not apply to operation by a 
contractor of a self-propelled tank vessel in a noncontiguous 
domestic trade, or to ownership by a contractor of an interest 
in a self-propelled tank vessel that operates in a 
noncontiguous domestic trade.''.
    (b) Relief From Delay in Certain Operations Following 
Documentation.--Section 652(c) of the Merchant Marine Act, 1936 
(46 U.S.C. 1187a(c)) is amended by adding at the end the 
following: ``The restrictions of section 901(b)(1) of this Act 
concerning the building, rebuilding, or documentation of a 
vessel in a foreign country shall not apply to a vessel for any 
day the operator of that vessel is receiving payments under an 
operating agreement under this subtitle.''.

SEC. 3604. AUTHORITY TO UTILIZE REPLACEMENT VESSELS AND CAPACITY.

    Section 653(d)(1) of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1187b(d)(1)) is amended to read as follows:
            ``(1) a contractor or other person that commits to 
        make available a vessel or vessel capacity under the 
        Emergency Preparedness Program or another primary 
        sealift readiness program approved by the Secretary of 
        Defense may, during the activation of that vessel or 
        capacity under that program, operate or employ in 
        foreign commerce a foreign-flag vessel or foreign-flag 
        vessel capacity as a temporary replacement for the 
        activated vessel or capacity; and''.

SEC. 3605. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET VESSEL.

    (a) Authority To Convey.--The Secretary of Transportation 
may convey all right, title, and interest of the United States 
Government in and to the vessel GOLDEN BEAR (United States 
official number 239932) to the Artship Foundation, located in 
Oakland, California (in this section referred to as the 
``recipient''), for use as a multi-cultural center for the 
arts.
    (b) Terms of Conveyance.--
            (1) Delivery of vessel.--In carrying out subsection 
        (a), the Secretary shall deliver the vessel--
                    (A) at the place where the vessel is 
                located on the date of conveyance;
                    (B) in its condition on that date; and
                    (C) at no cost to the United States 
                Government.
            (2) Required conditions.--The Secretary may not 
        convey a vessel under this section unless--
                    (A) the recipient agrees to hold the 
                Government harmless for any claims arising from 
                exposure to hazardous material, including 
                asbestos and polychlorinated biphenyls, after 
                conveyance of the vessel, except for claims 
                arising before the date of the conveyance or 
                from use of the vessel by the Government after 
                that date; and
                    (B) the recipient has available, for use to 
                restore the vessel, in the form of cash, liquid 
                assets, or a written loan commitment, financial 
                resources of at least $100,000.
            (3) Additional terms.--The Secretary may require 
        such additional terms in connection with the 
conveyanceauthorized by this section as the Secretary considers 
appropriate.
    (c) Other Unneeded Equipment.--The Secretary may convey to 
the recipient of the vessel conveyed under this section any 
unneeded equipment from other vessels in the National Defense 
Reserve Fleet, for use to restore the vessel conveyed under 
this section to museum quality.

SEC. 3606. DETERMINATION OF GROSS TONNAGE FOR PURPOSES OF TANK VESSEL 
                    DOUBLE HULL REQUIREMENTS.

    Section 3703a of title 46, United States Code, is amended 
by adding at the end the following:
    ``(e)(1) For the purposes of this section and except as 
otherwise provided in paragraphs (2) and (3) of this 
subsection, the gross tonnage of a vessel shall be the gross 
tonnage that would have been recognized by the Secretary on 
July 1, 1997, as the tonnage measured under section 14502 of 
this title, or as an alternate tonnage measured under section 
14302 of this title as prescribed by the Secretary under 
section 14104 of this title.
    ``(2)(A) The Secretary may waive the application of 
paragraph (1) to a tank vessel if--
            ``(i) the owner of the tank vessel applies to the 
        Secretary for the waiver before January 1, 1998;
            ``(ii) the Secretary determines that--
                    ``(I) the owner of the tank vessel has 
                entered into a binding agreement to alter the 
                tank vessel in a shipyard in the United States 
                to reduce the gross tonnage of the tank vessel 
                by converting a portion of the cargo tanks of 
                the tank vessel into protectively located 
                segregated ballast tanks; and
                    ``(II) that conversion will result in a 
                significant reduction in the risk of a 
                discharge of oil;
            ``(iii) at least 60 days before the date of the 
        issuance of the waiver, the Secretary--
                    ``(I) publishes notice that the Secretary 
                has received the application and made the 
                determinations required by clause (ii), 
                including a description of the agreement 
                entered into pursuant to clause (ii)(I); and
                    ``(II) provides an opportunity for 
                submission of comments regarding the 
                application; and
            ``(iv) the alterations referred to in clause 
        (ii)(I) are completed before the later of--
                    ``(I) the date by which the first special 
                survey of the tank vessel is required to be 
                completed after the date of the enactment of 
                the National Defense Authorization Act for 
                Fiscal Year 1998; or
                    ``(II) July 1, 1999.
    ``(B) A waiver under subparagraph (A) shall not be 
effective after the expiration of the 3-year period beginning 
on the first date on which the tank vessel would have been 
prohibited by subsection (c) from operating if the alterations 
referred to in subparagraph (A)(ii)(I) were not made.
    ``(3) This subsection does not apply to a tank vessel that, 
before July 1, 1997, had undergone, or was the subject of a 
contract for, alterations that reduce the gross tonnage of the 
tank vessel, as shown by reliable evidence acceptable to the 
Secretary.''.
    And the Senate agree to the same.
    That the Senate recede from its amendment to the title of 
the bill.
                From the Committee on National Security, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Floyd Spence,
                                   Bob Stump,
                                   Duncan Hunter,
                                   John R. Kasich,
                                   Herbert H. Bateman,
                                   James V. Hansen,
                                   Curt Weldon,
                                   Joel Hefley,
                                   Jim Saxton,
                                   Steve Buyer,
                                   Tillie K. Fowler,
                                   John M. McHugh,
                                   James M. Talent,
                                   Terry Everett,
                                           (except for sections 355, 
                                               356, and 358-367),
                                   Roscoe G. Bartlett,
                                   Howard ``Buck'' McKeon,
                                   Ron Lewis,
                                   J.C. Watts, Jr.,
                                   Saxby Chambliss,
                                   Bob Riley,
                                   Ike Skelton,
                                   Norman Sisisky,
                                   John M. Spratt, Jr.,
                                           (except for the increase 
                                               over the President's 
                                               request for research and 
                                               development of a space-
                                               based laser and the 
                                               statement of managers on 
                                               this program),
                                   Solomon P. Ortiz,
                                   Owen Pickett,
                                   Gene Taylor,
                                   Neil Abercrombie,
                                   Martin T. Meehan,
                                   Jane Harman,
                                   Paul McHale,
                                   Patrick J. Kennedy,
                                   Rod Blagojevich,
                                   Vic Snyder,
                As additional conferees from the Permanent 
                Select Committee on Intelligence, for 
                consideration of matters within the 
                jurisdiction of that committee under clause 2 
                of rule XLVIII:
                                   Porter J. Goss,
                                   Jerry Lewis,
                                   Norm Dicks,
                As additional conferees from the Committee on 
                Commerce for consideration of sections 344, 
                601, 654, 735, 1021, 3143, 3144, 3201, 3202, 
                3402, and 3404 of the House bill, and sections 
                338, 601, 663, 706, 1064, 2823, 3136, 3140, 
                3151, 3160, 3201, and 3402 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Tom Bliley,
                                   Dan Schaefer,
                Provided that Mr. Oxley is appointed in lieu of 
                Mr. Dan Schaefer of Colorado for consideration 
                of sections 344 and 1021 of the House bill and 
                section 2823 of the Senate amendment:
                                   Michael G. Oxley,
                Provided that Mr. Bilirakis is appointed in 
                lieu of Mr. Dan Schaefer of Colorado for 
                consideration of sections 601, 654, and 735 of 
                the House bill, and sections 338, 601, 663, and 
                706 of the Senate amendment:
                                   Mike Bilirakis,
                Provided that Mr. Tauzin is appointed in lieu 
                of Mr. Dan Schaefer of Colorado for 
                consideration of section 1064 of the Senate 
                amendment.
                                   Billy Tauzin,
                As additional conferees from the Committee on 
                Education and the Workforce, for consideration 
                of sections 374, 658, and 3143 of the House 
                bill, and sections 664 of the Senate amendment, 
                and modifications committed to conference:
                                   Bill Goodling,
                                   Harris W. Fawell,
                                   Loretta Sanchez,
                Provided that Mr. Riggs is appointed in lieu of 
                Mr. Fawell for consideration of section 658 of 
                the House bill and section 664 of the Senate 
                amendment:
                                   Frank Riggs,
                As additional conferees from the Committee on 
                Government Reform and Oversight, for 
                consideration of section 322 and 3527 of the 
                House bill, and sections 1068, 1107, 2811, and 
                3527 of the Senate amendment, and modifications 
                committed to conference:
                                   Dan Burton,
                                   Stephen Horn,
                As additional conferees from the Committee on 
                House Oversight, for consideration of section 
                543 of the Senate amendment, and modifications 
                committed to conference:
                                   William M. Thomas,
                                   Bob Ney,
                As additional conferees from the Committee on 
                the Judiciary, for consideration of sections 
                374, 1057, 3521, 3522, and 3541 of the House 
                bill, and sections 831, 1073, 1075, 1106, and 
                1201-1216 of the Senate amendment, and 
                modifications committed to conference:
                                   Henry J. Hyde,
                                   Lamar Smith,
                As additional conferees from the Committee on 
                Resources, for consideration of sections 214, 
                601, 653, 1021, 2835, 2901-2914 and 3404 of the 
                House bill, and sections 234, 381-392, 601, 
                706, 2819, and 3158 of the Senate amendment, 
                and modifications committed to conference:
                                   Don Young,
                                   Billy Tauzin,
                Provided that Mr. Delahunt is appointed in lieu 
                of Mr. Miller of California for consideration 
                of sections 2901-2914 of the House bill and 
                sections 381-392 of the Senate amendment.
                                   William Delahunt,
                As additional conferees from the Committee on 
                Science, for consideration of sections 214 and 
                3148 of the House bill, and sections 234 and 
                1064 of the Senate amendment, and modifications 
                committed to conference:
                                   F. James Sensenbrenner, Jr.,
                                   Ken Calvert,
                                   George E. Brown, Jr.,
                Provided that Mr. Rohrabacher is appointed in 
                lieu of Mr. Calvert for consideration of 
                section 1064 of the Senate amendment:
                                   Dana Rohrabacher,
                As additional conferees from the Committee on 
                Transportation and Infrastructure for 
                consideration of sections 345, 563, 601, 1021, 
                2861, and 3606 of the House bill, and section 
                601 of the Senate amendment, and modifications 
                committed to conference:
                                   Bud Shuster,
                                   Wayne T. Gilchrest,
                                   Robert A. Borski,
                As additional conferees from the Committee on 
                Veterans' Affairs for consideration of sections 
                751, 752, and 759 of the House bill, and 
                sections 220, 542, 751, 752, 758, 1069, 1074, 
                and 1076 of the Senate amendment, and 
                modifications committed to conference:
                                   Christopher H. Smith,
                                   Mike Bilirakis,
                                   Joseph P. Kennedy,
                                 Managers on the Part of the House.
                                   Strom Thurmond,
                                   John Warner,
                                   John McCain,
                                   Dan Coats,
                                   Bob Smith,
                                   Dirk Kempthorne,
                                   Jim Inhofe,
                                   Rick Santorum,
                                   Olympia Snowe,
                                   Pat Roberts,
                                   Carl Levin,
                                   Ted Kennedy,
                                   Jeff Bingaman,
                                   John Glenn,
                                   Robert C. Byrd,
                                   Chuck Robb,
                                   Joe Lieberman,
                                   Max Cleland,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 1119) to 
authorize appropriations for fiscal year 1998 for defense 
activities of the Department of Defense, for military 
construction, and for defense programs of the Department of 
Energy, to prescribe personnel strengths for such fiscal year 
for the Armed Forces, and for other purposes, submit the 
following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report:
      The Senate amendment struck out all of the House bill 
after the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment which is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clarifying 
changes.

                 Summary Statement of Conference Action

      The conferees recommend authorizations for the Department 
of Defense for procurement, research and development, test and 
evaluation, operation and maintenance, working capital funds, 
military construction and family housing, weapons programs of 
the Department of Energy, and the civil defense that have 
budget authority implications of $268.2 billion.

                    Summary Table of Authorizations

      The defense authorization act provides authorizations for 
appropriations but does not generally provide budget authority. 
Budget authority is provided in appropriations acts.
      In order to relate the conference recommendations to the 
Budget Resolution, matter in addition to the dollar 
authorizations contained in this bill must be taken into 
account. A number of programs in the defense function are 
authorized permanently or, in certain instances, authorized in 
other annual legislation. In addition, this authorization bill 
would establish personnel levels and include a number of 
legislative provisions affecting military compensation.
      The following table summarizes authorizations included in 
the bill for fiscal year 1998 and, in addition, summarizes the 
implications of the conference action for the budget totals for 
national defense (budget function 050).


Congressional defense committees

      The term ``congressional defense committees'' is often 
used in this statement of the managers. It means the Defense 
Authorization and Appropriations Committees of the Senate and 
House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          Title I--Procurement

Overview

      The budget request for fiscal year 1998 contained an 
authorization of $42,883.0 million for Procurement in the 
Department of Defense. The House bill would authorize $46,595.9 
million. The Senate amendment would authorize $47,028.1 
million. The conferees recommended an authorization of 
$45,773.8 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.


Overview

      The budget request for fiscal year 1998 contained an 
authorization of $1,162.5 million for Aircraft Procurement, 
Army in the Department of Defense. The House bill would 
authorize $1,535.3 million. The Senate amendment would 
authorize $1,394.5 million. The conferees recommended an 
authorization of $1,316.2 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


                          funding explanations

UH-60 blackhawk

      The budget request included $246.1 million to procure 18 
UH-60 Blackhawk helicopters.
      The House bill would authorize an increase of $96.0 
million for an additional 12 aircraft.
      The Senate amendment would authorize an increase of 
$127.3 million for 18 additional aircraft.
      The conferees agree to authorize an increase of $89.0 
million for 10 additional aircraft, of which $6.0 million would 
be used to procure kits to configure UH-60Q medical evacuation 
aircraft.

Kiowa warrior

      The budget request included $38.8 million for Kiowa 
Warrior helicopter modifications.
      The House bill would authorize an increase of $175.0 
million to procure 21 aircraft.
      The Senate amendment would authorize an additional $15.0 
million for safety modifications to existing aircraft.
      The House recedes.

Aircraft survivability equipment modifications

      The budget request included $4.6 million to support 
aircraft survivability equipment modifications.
      The House bill would authorize an increase of $15.0 
million for laser detection sets for Army aircraft.
      The Senate amendment would authorize an additional $8.1 
million for testing and integration of the suite of integrated 
radio frequency countermeasures and the suite of integrated 
infrared countermeasures systems.
      The conferees agree to authorize a total of $19.1 million 
for aircraft survivability equipment modifications, of which 
$7.0 million would be for laser detection sets and $7.5 million 
for advanced threat infrared countermeasures.

Aircraft survivability equipment

      The budget request included $0.9 million to procure 
aircraft survivability equipment.
      The House bill would authorize an increase of $14.8 
million to procure upgrades to the aircraft survivability 
equipment trainer (ASET) IV system.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $7.4 
million for ASET IV upgrades.

Training devices

      The budget request included no funds for aircraft 
training devices.
      The House bill and the Senate amendment would authorize 
an increase of $18.6 million to procure upgrades to flight 
simulators used in the Korean theater.
      The conferees agree to authorize an increase of $13.3 
million for these critical simulator upgrades.

Overview

      The budget request for fiscal year 1998 contained an 
authorization of $1,178.2 million for Missile Procurement, Army 
in the Department of Defense. The House bill would authorize 
$1,176.5 million. The Senate amendment would authorize $1,223.9 
million. The conferees recommended an authorization of $742.6 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Avenger

      The budget request included no funds for procurement of 
Avenger missile systems.
      The House bill would authorize an increase of $13.3 
million for Avenger slew-to-cue modifications.
      The Senate amendment would authorize an increase of $15.0 
million to the budget request: $13.0 million for Avenger slew-
to-cue modifications; and $2.0 million for Avenger table top 
trainers for the Army National Guard.
      The conferees agree to authorize $7.4 million for Avenger 
slew-to-cue modifications.

Hellfire

      The budget request included $279.7 million for 
procurement of Hellfire missile systems.
      The House bill would support the budget request.
      The Senate amendment would reduce the budget request by 
$10.7 million.
      The conferees agree to reduce the Hellfire missile 
program by $30.7 million.

Multiple launch rocket system rocket

      The budget request included $2.9 million for procurement 
of Multiple Launch Rocket System (MLRS) rockets.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $12.0 
million for procurement of extended range MLRS rockets.
      The House recedes.

Multiple launch rocket system launcher

      The budget request included $102.6 million to support 
procurement of Multiple Launch Rocket System (MLRS) launchers.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $25.1 
million for MLRS launchers necessary to accelerate Army plans 
to convert MLRS force structure to a new 2  9 
configuration.
      The conferees agree to authorize $115.7 million for this 
program. This total includes $25.1 million for additional 
launchers and a transfer of $12.0 million to MLRS extended 
range rockets.

Brilliant anti-armor submunition

      The budget request included $85.2 million for procurement 
of Brilliant Anti-Armor Submunition (BAT) submunitions.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees are concerned about the Army's procurement 
of basic BAT munitions prior to production and fielding of the 
objective preplanned product improvement (P3I) BAT system. 
While the conferees understand that the Army plans to use the 
basic BAT as a bridge to the P3I system for development and 
fielding of the Block II Army Tactical Missile System, it is 
clear that the basic BAT system is solely an interim solution 
and cannot meet the entire range of system requirements. The 
conferees agree to eliminate funding for the basic BAT 
munition. The conferees, in support of an alternative to 
procuring basic BAT munitions, agree to authorize a transfer of 
$35.0 million to PE 64768A in order to accelerate development 
and production of the P3I BAT.

Overview

      The budget request for fiscal year 1998 contained an 
authorization of $1,065.7 million for Weapons and Tracked 
Combat Vehicles Procurement, Army in the Department of Defense. 
The House bill would authorize $1,519.5 million. The Senate 
amendment would authorize $1,179.1 million. The conferees 
recommended an authorization of $1,297.6 million. Unless noted 
explicitly in the statement of managers, all changes are made 
without prejudice.


Bradley base sustainment
      The budget request included $125.6 million to upgrade 
Bradley Fighting Vehicles (BFV).
      The House bill would authorize the budget request but 
would also authorize $120.0 million for A0 to A2 Operation 
Desert Storm (ODS) upgrades for the Army National Guard (ARNG) 
in the BFV funding line.
      The Senate amendment would authorize an increase of $62.4 
million to maintain low-rate production rates for A3 upgrades 
necessary prior to full scale production in 1999.
      The conferees agree to authorize an increase of $95.0 
million for BFV ODS upgrades for the ARNG.
Field artillery ammunition support vehicle
      The budget request included no funds for Field Artillery 
Ammunition Support Vehicles (FAASV).
      The House bill would authorize an increase of $81.1 
million to procure 72 FAASV systems.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $40.0 million for the 
FAASV systems necessary to support Army National Guard 
artillery modernization.
M109A6 paladin howitzer
      The budget request included $18.7 million for Paladin 
howitzer artillery system support.
      The House bill would authorize an increase of $111.0 
million to procure 72 Paladin howitzer systems.
      The Senate amendment would authorize the budget request.
      The Senate recedes with an amendment that would authorize 
an increase of $56.0 million for no less than 36 Paladin 
systems.
      The conferees agree to authorize $74.7 million for the 
M109A6 Paladin in support of Army National Guard artillery 
modernization.
Improved recovery vehicle
      The budget request included $28.6 million for Improved 
Recovery Vehicle (IRV) program support.
      The House bill would authorize an increase of $27.8 
million to procure an additional 12 vehicles.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $32.6 million for IRV 
system requirements.
Overview
      The budget request for fiscal year 1998 contained an 
authorization of $336.8 million for Ammunition Procurement, 
Navy and Marine Corps in the Department of Defense. The House 
bill would authorize $470.4 million. The Senate amendment would 
authorize $369.8 million. The conferees recommended an 
authorization of $364.7 million. Unless noted explicitly in the 
statement of managers, all changes are made without prejudice.


Overview

      The budget request for fiscal year 1998 contained an 
authorization of $7,438.2 million for Shipbuilding and 
Conversion Procurement, Navy in the Department of Defense. The 
House bill would authorize $7,655.0 million. The Senate 
amendment would authorize $8,593.4 million. The conferees 
recommended an authorization of $8,195.3 million. Unless noted 
explicitly in the statement of managers, all changes are made 
without prejudice.


LPD-18
      The budget request included no funds for the LPD-18.
      The House bill would authorize $185.0 million for advance 
procurement of this type ship.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $100.0 million for the 
advance procurement of one LPD-17 class ship.
Oceanographic survey ship
      The budget request included no funds for an additional 
oceanographic survey ship.
      The House bill and Senate amendment would authorize $75.2 
million for one TAGS-65 oceanographic survey ship.
      The conferees agree to authorize $16.0 million advance 
procurement for one TAGS-65 oceanographic survey ship.
Overview
      The budget request for fiscal year 1998 contained an 
authorization of $2,825.5 million for Other Procurement, Navy 
in the Department of Defense. The House bill would authorize 
$3,073.4 million. The Senate amendment would authorize $3,137.7 
million. The conferees recommended an authorization of $2,970.9 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


AN/WSN-7 inertial navigation system

      The budget request included $31.6 million for navigation 
equipment, including $12.3 million for the procurement of nine 
AN/WSN-7 ring laser gyros (RLGs).
      The House bill and the Senate amendment would authorize 
an increase of $18.0 million for procurement and installation 
of 18 additional WSN-7 RLGs.
      The conferees agree to authorize an increase of $10.5 
million for procurement and installation of additional WSN-7 
RLGs.

Self-contained breathing apparatus

      The budget request included $14.1 million for fire 
fighting equipment, but did not include funding for procurement 
of oxygen breathing apparatuses used for shipboard 
firefighting.
      The House bill would authorize an increase of $23.0 
million to begin outfitting the fleet with self-contained 
breathing apparatuses (SCBAs), a non-developmental, commercial 
off-the-shelf more user-friendly and efficient shipboard 
firefighting system to replace the antiquated oxygen-breathing 
apparatus (OBA).
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $5.0 
million for procurement of SCBAs.

Pollution control equipment

      The budget request included $156.8 million for pollution 
control equipment.
      The House bill would authorize a decrease of $6.3 million 
because an equivalent amount of excess fiscal year 1997 funds 
is available to meet fiscal year 1998 program requirements.
      The Senate amendment would authorize a decrease of $8.8 
million due to reduced requirements resulting from ship 
deactivations.
      The conferees agree to authorize $135.8 million, a 
decrease of $21.0 million, for pollution control equipment.

AN/BPS-16 submarine navigation radar

      The budget request included no funds for the procurement 
of AN/BPS-16 or AN/BPS-15H submarine navigation radar.
      The House bill would authorize $9.0 million for the AN/
BPS-16 submarine navigation radar to initiate the backfit of 
the radar on the Trident submarine fleet.
      The Senate amendment would authorize $9.0 million for the 
procurement of additional AN/BPS-15H radar sets for 
installation into Trident class submarines and for use as 
training and refit facility assets.
      The conferees agree to authorize $9.0 million for AN/BPS-
15H radar navigation sets.

Cooperative engagement capability

      The budget request included no funds for procurement of 
cooperative engagement capability (CEC) equipment.
      The House bill would authorize $114.8 million to restore 
the Navy's CEC fielding plan by procuring and installing CEC 
shipsets for two aircraft carrier battle groups.
      The Senate amendment would authorize $74.8 million to 
procure and install CEC battle group equipment.
      The conferees agree to authorize an increase of $75.0 
million for procurement and installation of CEC battle group 
equipment.

Information Technology-21

      The budget request included no funds for Information 
Technology-21 (IT-21).
      The Senate amendment would authorize an increase of 
$157.2 million for IT-21. Of this amount $147.9 would be for 
procurement and installation of IT-21 related equipment and 
$9.3 million would be for related operations and maintenance 
funding. These funds would provide an initial impetus to the 
IT-21 initiative and assist the Navy to achieve its goal of a 
fully outfitted fleet by the year 2000.
      The House bill would authorize the budget request.
      The conferees agree to authorize a total IT-21 
procurement increase of $58.0 million as follows:
          (1) JMCIS Afloat $6.0 million;
          (2) Naval Tactical Command Support System $31.0 
        million;
          (3) Ship Communications Automation $4.0 million;
          (4) SATCOM Ship Terminals (Space) $2.0 million;
          (5) Naval Shore Communications $12.0 million; and
          (6) Information Systems Security Program $3.0 million

Sonobuoy procurement

      The budget request included $54.8 million for the 
procurement of AN/SSQ-36, AN/SSQ-53E, and AN/SSQ-62E sonobuoys 
and Signal, Underwater Sound (SUS) Systems. The budget request 
included no funds for the AN/SSQ-57 or the AN/SSQ-110 
sonobuoys.
      The House bill would authorize an increase of $45.8 
million to be distributed as follows: $1.5 million for AN/SSQ-
36; $23.7 million for AN/SSQ-53; $4.5 million for AN/SSQ-57 
retrofits; $8.6 million for SSQ-62; $5.0 million for AN/SSQ-110 
shallow-water upgrades; and $2.5 million for Signal, Underwater 
Sound (SUS).
      The Senate amendment would authorize increases of $19.0 
million for AN/SSQ-53E and $7.0 million for AN/SSQ-62E 
sonobuoys.
    The conferees agree to authorize the following increases to 
the budget request: $0.3 million for AN/SSQ-36; $19.0 million 
for AN/SSQ-53; $7.0 million for SSQ-62; and $0.5 million for 
AN/SSQ-57.

Mobile remote emitter simulator

      The budget request included $4.9 million for weapons 
range support, but did not include any funding to procure 
Mobile Remote Emitter Simulator (MRES) system.
      The House bill would authorize an increase of $9.5 
million to procure two MRES systems for the Atlantic test range 
component of the Naval Air Warfare Center.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $6.0 
million for MRES.

NATO sea sparrow missile system low light level television

      The budget request included no funds for the NATO Sea 
Sparrow missile system low light level television (LLTV) 
charged coupled device (CCD) ordnance alternation (ORDALT).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $8.0 
million above the budget request for the procurement of 
additional CCD ORDALT kits.
      The conferees agree to an increase of $6.0 million for 
the procurement of additional CCD ORDALT kits.

AEGIS support equipment

      The budget request included $26.8 million for AEGIS 
support equipment.
      The House bill would authorize an increase of $8.0 
million to backfit the computer-aided submode training lesson 
authorizing system (CLASS) on AEGIS cruisers and destroyers and 
to expand CLASS to other systems such as cooperative engagement 
capability, joint maritime command information system, and 
global command and control system.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a $21.1 million for 
AEGIS support equipment.

Overview

      The budget request for fiscal year 1998 contained an 
authorization of $374.3 million for Marine Corps Procurement, 
Navy in the Department of Defense. The House bill would 
authorize $442.8 million. The Senate amendment would authorize 
$554.8 million. The conferees recommended an authorization of 
$460.1 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.


Light tactical wheeled vehicle replacement
      The budget request included $0.7 million to support the 
Marine Corps High Mobility Multipurpose Wheeled Vehicle (HMMWV) 
program.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $55.0 
million to accelerate a planned replacement program for a 
deteriorating HMMWV fleet.
      The conferees agree to authorize an increase of $30.0 
million.
Chemical/biological incident response force equipment
      The budget request included $1.1 million for field 
medical equipment and no funding for chemical/biological 
incident response force (CBIRF) equipment.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $15.0 
million for procurement of CBIRF equipment.
      The conferees agree to authorize an increase of $10.0 
million for CBIRF requirements for a total of $11.1 million for 
Marine Corps field medical equipment procurement.
MK-19 grenade launcher
      The budget request included no funds for the MK-19 
grenade launcher.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $13.0 
million to maintain production of the MK-19 grenade launchers.
      The conferees agree to authorize a total of $8.0 million 
for the MK-19 grenade launcher.
Overview
      The budget request for fiscal year 1998 contained an 
authorization of $890.9 million for Ammunition Procurement, 
Army in the Department of Defense. The House bill would 
authorize $1,093.8 million. The Senate amendment would 
authorize $1,043.2 million. The conferees recommended an 
authorization of $1,011.2 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Overview

      The budget request for fiscal year 1998 contained an 
authorization of $2,455.0 million for Other Procurement, Army 
in the Department of Defense. The House bill would authorize 
$2,640.3 million. The Senate amendment would authorize $2,875.7 
million. The conferees recommended an authorization of $2,566.2 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Semitrailers
      The budget request included funds for a variety of 
semitrailer requirements.
      The conferees note program delays for several semitrailer 
procurements. In consideration of these delays, the conferees 
agree to funding reductions of $7.4 million for 22.5 ton 
semitrailer/container transporters; $4.6 million for 5,000 
gallon tank semitrailers; and $7.4 million for 7,500 gallon 
bulkhaul semitrailers. In addition, the conferees agree to 
authorize $2.0 million for 22.5 ton semitrailer/container 
transporters; $3.0 million for 5,000 gallon tank semitrailers; 
and $3.0 million for 7,500 gallon bulkhaul semitrailers.
High mobility multi-purpose wheeled vehicle
      The budget request included $66.2 million for High 
Mobility Multi-Purpose Wheeled Vehicle (HMMWV) production.
      The House bill would authorize an increase of $38.7 
million for 360 up-armored HMMWVs.
      The Senate amendment would authorize an increase of $75.0 
million to maintain minimum production levels of HMMWVs.
      The conferees agree to authorize an increase of $65.0 
million for HMMWV production.
Family of heavy tactical vehicles
      The budget request included $9.1 million for Family of 
Heavy Tactical Vehicles (FHTV) production support.
      The House bill would authorize an increase of $45.0 
million to procure 96 Heavy Equipment Transporters (HETS) for 
the Army National Guard.
      The Senate amendment would authorize an increase of 
$128.0 million to maintain minimum production levels of FHTVs. 
This funding would include $50.0 million for the Palletized 
Load System (PLS); $45.0 million for HETS; and $33.0 million 
for Heavy Expanded Mobility Tactical Truck (HEMTT) wreckers.
      The conferees agree to authorize an increase of $105.0 
million for FHTV. Of this amount, $45.0 million is for HETS and 
the remaining $60.0 million is for HEMTT wreckers and PLS.
Truck, tractor, line haul, M915/M916
      The budget request included $36.1 million to procure 
M915/916 line haul tractors.
      The House bill would reduce the request by $18.0 million 
to achieve a more moderate rate of production.
      The Senate amendment would authorize the budget request.
      The conferees understand that there has been a delay in 
the 7,500 gallon bulkhaul semitrailer program, which is the 
type of trailer towed by the M915/916 line haul tractor series. 
Accordingly the conferees believe that revised Army 
requirements can be met at lower average procurement rates than 
previously planned and therefore agree to eliminate funding for 
these tractors in fiscal year 1998. Further, the Secretary of 
the Army is directed to review requirements for this equipment 
and restructure the program to achieve an annual procurement 
rate consistent with revised requirements beginning in fiscal 
year 1999.
Defense satellite communications system
      The budget request included $87.6 million for defense 
satellite communications system requirements.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees note the budget request included funding 
for acceleration of the production of a universal modem system. 
The conferees understand that required testing for this system 
will not be complete until late 1999. Therefore, the conferees 
agree to reduce program funding by $2.0 million.
Satellite terminals
      The budget request included $7.3 million for satellite 
communication terminals.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees note the savings achieved from a joint 
Army/Air Force procurement in 1997. The conferees believe that 
these savings should be used to offset funding requirements for 
fiscal year 1998. Therefore, the conferees agree to reduce 
program funding by $1.2 million.
NAVSTAR global positioning system
      The budget request included $6.8 million for NAVSTAR 
Global Positioning System (GPS) equipment.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees have been informed that both price and 
quantities budgeted for NAVSTAR GPS equipment were reduced in 
1997. Additionally, the conferees understand that 
programmanagement reductions have also yielded savings. The conferees 
believe these savings should be used to offset funding requirements for 
fiscal year 1998. Therefore, the conferees agree to reduce funding for 
this program by $1.2 million.
Army data distribution system
      The budget request included $57.2 million to procure data 
distribution systems, including $7.0 million for joint tactical 
information distribution system (JTIDS) terminals.
      The House bill would authorize an increase of $37.4 
million to procure an additional 1,092 enhanced position 
location reporting system (EPLRS) radios.
      The Senate amendment would authorize an increase of $37.3 
million for 1,092 EPLRS radios.
      The conferees agree to authorize an increase of $30.4 
million for EPLRS radios and transfer $20.1 million for JTIDS 
terminals to ballistic missile defense procurement.
      The conferees agree to authorize $67.5 million for 
critical data distribution systems.
Area common user system modernization program
      The budget request included $82.4 million for Area Common 
User System (ACUS) modernization.
      The House bill would authorize an increase of $10.0 
million to procure tactical communications technologies for 
evaluation by Force XXI experimental forces.
      The Senate amendment would authorize an increase of $33.0 
million to support ongoing modifications to the ACUS and 
support migration to the Army's Warfighter Information Network.
      The conferees agree to authorize an increase of $23.0 
million for ACUS.
Information system security program
      The budget request included $10.2 million to procure 
information system security devices.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $5.5 
million to support minimum production requirements for 400 
Airterm KY-100 devices.
      The conferees agree to authorize an increase of $3.5 
million for Airterm KY-100 devices.
Ground based common sensors
      The budget request included $26.8 million for ground 
based common sensors.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees agree to eliminate funding in fiscal year 
1998 based on the Army decision to reschedule the initial 
operational test and evaluation for this program.
Shortstop
      The budget request included no funds for the Shortstop 
electronic protection system (SEPS).
      The House bill would authorize an increase of $9.0 
million to procure 42 additional SEPS needed in Korea.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $6.0 million for SEPS 
devices needed by U.S. forces in Korea.
Night vision
      The budget request included $85.3 million for night 
vision systems.
      The House bill would authorize an increase of $30.8 
million that would be used to procure additional systems: $17.0 
million for AN/PVS-7 night vision goggle systems; $5.4 million 
for ANVIS 25mm image intensifiers; and $8.4 million for night 
vision driver viewers for the M113A3.
      The Senate amendment would authorize an increase of $36.0 
million that would be used to procure additional night vision 
systems: $8.0 million for AN/PEQ-2 aiming light systems; $17.0 
million for AN/PVS-7 night vision goggle systems; $10.0 million 
for AN/PAS-13 thermal weapon sight systems; and $1.0 million 
for 2,900 borelights.
      The conferees agree to authorize an increase of $26.4 
million for night vision equipment: $11.0 million for AN/PVS-7 
systems; $5.5 million for AN/PEQ-2 aiming light systems; $6.9 
million for AN/PAS-13 thermal weapon sights; $2.0 million for 
light weight video systems; and $1.0 million for borelights.
LOGTECH
      The budget request included $3.4 million for LOGTECH 
systems.
      The House bill would authorize an increase of $11.7 
million to procure additional radio frequency (RF) tagging 
systems.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $10.0 
million for additional RF tagging equipment.
Maneuver control system
      The budget request included $15.7 million for the 
maneuver control system (MCS).
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees note a history of significant problems with 
the Army's efforts to develop the software requirements for 
thisprogram and corresponding delays in scheduled operational 
testing. The conferees also note that this system failed two of four 
development testing activities. Until MCS meets all the established 
system requirements and the Army validates corrective actions through 
requisite testing, the conferees agree to eliminate further funding for 
this program.
Automated data processing equipment
      The budget request included $125.1 million for Automated 
Data Processing Equipment (ADPE).
      The House bill would authorize an increase of $13.0 
million to procure additional Sustaining Base Information 
Services (SBIS) hardware.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $7.0 
million of SBIS hardware.
Railway car, flat, 100 ton
      The budget request included $17.8 million for procurement 
of 100 ton railway cars.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees agree to eliminate fiscal year 1998 funding 
for procurement of railway cars. The conferees note that the 
Army was able to take advantage of an unanticipated opportunity 
to procure 86% of its rail car requirement in calendar year 
1997.
Training devices, nonsystem
      The budget request included $49.7 million for nonsystem 
training devices.
      The House bill would authorize an additional $4.0 million 
for four fire training systems.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $4.0 
million for four fire fighter training systems.
Close combat tactical trainers
      The budget request included $92.9 million for simulation 
network close combat tactical trainers (CCTT).
      The House bill would authorize a decrease of $11.5 
million due to the delay in initial operation test and 
evaluation for the close combat tactical training systems.
      The Senate amendment would authorize a decrease of $10.0 
million for procurement of training system components and would 
authorize a transfer of an additional $11.5 million to PE 
64780A to resolve software problems.
      The conferees agree to authorize a decrease of $38.4 
million in procurement funding for the program. Included in 
this reduction is the transfer of $10.5 million to PE 64780A.
Overview
      The budget request for fiscal year 1998 contained an 
authorization of $6,086.0 million for Aircraft Procurement, 
Navy in the Department of Defense. The House bill would 
authorize $6,173.0 million. The Senate amendment would 
authorize $6,482.3 million. The conferees recommended an 
authorization of $6,437.3 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


AV-8H Harrier remanufacture
      The budget request included $300.1 million to procure 11 
AV-8B remanufactured aircraft for the Marine Corps. The fiscal 
year 1997 plan for AV-8B remanufacture in fiscal year 1998 
called for a procurement of 12 aircraft in fiscal year 1998. 
However, the budget request for fiscal year 1998 included 11 
aircraft, a further indication of the Department of Defense's 
inability to execute its own previously stated procurement 
program.
      The House bill would authorize an increase of $33.0 
million for an additional aircraft.
      The Senate amendment would authorize an increase of $89.6 
million, including $24.6 million for an additional aircraft 
remanufacture and $65.0 million for training simulators.
      The conferees agree to authorize an increase of $6.2 
million for an additional AV-8B remanufacture. The conferees 
understand that an additional remanufacture can be funded with 
this increase through program savings.
T-45TS Goshawk
      The budget request included $269.8 million for 12 T-45 
trainer aircraft and $6.2 million for advance procurement of 12 
T-45C aircraft in fiscal year 1999.
      The House bill would authorize an increase of $100.0 
million for the procurement of six additional aircraft.
      The Senate amendment would authorize an increase of 
$102.0 million for the same purpose.
      The conferees note with concern the recent grounding of 
the T-2 trainers because of flight control malfunctions. The T-
2s are being replaced by the T-45. Accordingly, the conferees 
agree to authorize $315.2 million, an increase of $45.4 million 
to accelerate fielding of the T-45 by increasing the fiscal 
year 1998 acquisition from 12 to 15 aircraft.
EA-6 Series
      The budget request included $86.8 million for EA-6B 
modifications.
      The House bill would authorize an increase of $68.0 
million, including $50.0 million for 10 wing center sections 
(WCS) and $18.0 million to continue the turbine engine blade 
containment system (TEBS).
      The Senate amendment would authorize an increase of $25.0 
million to incorporate a low risk, affordable upgrade to the 
EA-6B in conjunction with modifications already underway to 
counter the new family of threats.
      The conferees agree to authorize an increase of $25.0 
million to replace the WCS of 5 additional EA-6Bs. The increase 
of $25.0 million for WCS is partially offset by a $10.0 million 
reduction for late obligations, resulting in a net increase of 
$15.0 million for EA-6B modifications. The conferees urge the 
Secretary of the Navy to provide funds to complete the WCS 
modifications in the fiscal year 1999 budget request.
P-3C anti-surface warfare improvement program
      The budget request included $164.9 million for P-3 series 
modifications, $74.7 million of which is for the procurement of 
four anti-surface warfare improvements program (AIP) kits, and 
$41.3 million of which is for 11 sustained readiness program 
(SRP) kits.
      The House bill would authorize an increase of $56.6 
million for an additional eight AIP kits and an increase of 
$35.1 million to procure 17 additional shipsets of SRP kits. In 
addition, the House would authorize an increase of $11.0 
million for light weight environmentally sealed parachute 
assemblies (LESPA) and an increase of $1.4 million for oil 
debris detection systems (ODDS).
      The Senate amendment would authorize an increase of $17.3 
million for the procurement of two P-3C AIP kits and direct the 
Secretary of the Navy to formally evaluate the advisability of 
renegotiating the P-3C AIP contract to eliminate the cost 
penalties that are being incurred as a consequence of current 
Navy budgeting practices.
      The conferees agree to authorize the following increases 
to the budget request: $25.0 million for sustained readiness 
program (SRP) kits, $17.3 million for anti-surface warfare 
improvement program (AIP) kits, and $8.0 million for light 
weight environmentally sealed parachute assemblies.
Power plant changes
      The budget request included $14.0 million for power plant 
changes.
      The House bill would authorize an increase of $1.6 
million to incorporate the oil debris detection system (ODDS) 
on the P-3, E-2 and C-2 fleets, with $1.4 million for the P-3 
and $100,000 for the E-2 and C-2 fleets. The House bill would 
apportion the increase each for ODDS in individual aircraft 
modification accounts. The ODDS is an on-board detection system 
that alerts air crews to the presence of metal chips in engines 
and propeller gear boxes, allowing flights to be terminated 
prior to catastrophic failure of critical components.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $1.6 
million in the power plant changes budget line item for the 
incorporation of ODDS in P-3, E-2, and C-2 fleets.
Common Avionics Changes
      The budget request included $131.6 million for common 
avionics changes, but did not contain any funding to procure 
AN/AWW-13 guided weapon control monitor sets. The AN/AWW-13 
provides the data link capability for F/A-18 series aircraft to 
employ the precision-guided Walleye and the Stand-off Land 
Attack Missiles.
      The Senate amendment would authorize the budget request.
      The House bill would authorize an additional $9.0 million 
to continue AN/AWW-13 production. The House bill would also 
provide an additional $4.0 million in PE 64215N for integration 
of the ground proximity warning system (GPWS) into the Navy/
Marine Corps helicopters fleets.
      The conferees agree to authorize $130.4 million, which 
includes an additional $6.0 million to continue AN/AWW-13 
production and $4.0 million for GPWS integration. These 
increases are offset by a $10.0 million reduction for late 
obligations and a $1.2 million reduction for systems 
engineering growth in other programs funded in this budget 
line.
Overview
      The budget request for fiscal year 1998 contained an 
authorization of $1,136.3 million for Weapons Procurement, Navy 
in the Department of Defense. The House bill would authorize 
$1,214.7 million. The Senate amendment would authorize $1,200.4 
million. The conferees recommended an authorization of $1,089.4 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Tactical Tomahawk

      The Department of the Navy and the Department of Defense 
advised the conferees of a proposal by the current prime 
Tomahawk contractor to upgrade the capability and reduce the 
production unit cost of the Tomahawk cruise missile. The 
upgraded missile, a variant of the current Tomahawk (known as 
``Tactical Tomahawk'' or the ``Tomahawk Block IV+''), would 
include several enhancements to improve the tactical 
responsiveness of the missile. The Navy and the contractor 
would attempt to reduce Tomahawk missile unit cost by 
exploiting commercial manufacturing practices for the missile. 
Overall, the Navy is projecting that the Department could 
achieve life cycle cost savings for the Tactical Tomahawk of 
approximately $400.0 million, compared to similar costs for the 
currently planned Tomahawk Block IV missile system. The 
conferees also understand that the initial operational 
capability (IOC), fiscal year 2002, for the improved Tomahawk 
would be approximately two years later than the IOC for 
Tomahawk Block IV, fiscal year 2000.
      Under the Navy's proposal, the Department would use 
approximately $25.0 million in additional fiscal year 1998 
research and development and other procurement funding to begin 
the effort. The conferees understand that the Department wants 
to implement such a program as early as possible in fiscal year 
1998. In fact, the Navy had asked the conferees for the 
authority to divert these funds from the Weapons Procurement, 
Navy account by terminating the last year of the multi-year 
contract for procurement of the Tomahawk Block III missile.
      In general, the conferees support the concept of a 
program to upgrade the capabilities of the Tomahawk missile and 
to reduce the missile's unit cost. However, there are 
acquisition strategy and funding issues that must be addressed 
before the conferees would agree to such a proposal. Such 
questions include whether: (1) this program should be a sole 
source award to the current prime contractor; (2) the Navy and 
whichever prime contractor may be selected for such a program 
should evaluate subsystem alternatives such as engines on a 
``least cost'' or ``best value'' basis; and (3) buying the last 
increment of missiles on the current contract is less important 
than beginning a new program earlier.
      If the Secretary of Defense decides that starting the 
program in fiscal year 1998 is critical, the Secretary of 
Defense may submit a reprogramming request to transfer fiscal 
year 1998 funds that would be necessary to implement an 
alternative approach for the Tomahawk program. The conferees 
expect that such a request would include more detailed 
supporting rationale upon which the recommendation is based and 
would address the acquisition strategy and funding issues 
involved.

Joint Standoff Weapon

      The budget request included $58.7 million for 113 Joint 
Standoff Weapon (JSOW) missiles for the Navy. No funds were 
requested to procure JSOW missiles for the Air Force until 
fiscal year 1999.
      The House bill would authorize an increase of $10.0 
million for the Navy to procure 37 additional missiles and an 
increase of $29.0 million for the Air Force to initiate 
procurement of 100 missiles.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $5.0 
million for the Navy to procure a total of up to 150 JSOW, and 
an increase of $19.0 million for the Air Force to initiate 
acquisition of up to 100 JSOW.
Penguin missile program
      The budget request included no funds for procurement of 
Penguin missiles.
      The House bill would approve the request.
      The Senate amendment would authorize an increase of $15.0 
million for procurement of additional missiles to satisfy 
outstanding inventory objectives and sustain procurement of the 
Penguin missile during fiscal year 1998 to reduce costs by 
achieving labor learning and production stability.
      The conferees agree to authorize an increase of $7.5 
million for procurement of Penguin missiles.
Hellfire II missiles
      The budget request included no funds for Hellfire 
missiles for the Navy or Marine Corps.
      The House bill would authorize $37.5 million for 700 
Hellfire II missiles to address a shortfall in Navy and Marine 
Corps inventory requirements.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $20.0 million for 
procurement of Hellfire II missiles for the Navy and Marine 
Corps.
Close-in weapon system surface mode upgrade
      The budget request included $10.0 million for procurement 
of close-in weapon system (CIWS), but did not include any 
funding to procure surface mode upgrade kits for this system.
      The House bill would authorize an increase of $20.0 
million to procure CIWS upgrade kits for both surface 
combatants and other ships equipped with this system.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $15.0 
million for procurement of CIWS surface-mode upgrade kits.
Pioneer logistic support
      The budget request included $4.0 million for support of 
Pioneer unmanned aerial vehicle (UAV).
      The Senate amendment would authorize an increase of $3.0 
million to continue common automatic recovery system (CARS) 
logistic support in the Procurement, Defense-Wide account.
      The House bill would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million for logistic support in the Weapons Procurement, Navy 
Pioneer budget line item.
Overview
      The budget request for fiscal year 1998 contained an 
authorization of $5,817.8 million for Aircraft Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $6,770.9 million. The Senate amendment would 
authorize $6,048.9 million. The conferees recommended an 
authorization of $6,425.7 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


F-15E
       The budget request included $159.0 million to continue 
the procurement of F-15E strike aircraft.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of 
$100.8 million for procurement of an additional three F-15E 
aircraft.
      The conferees agree to authorize an increase of $67.3 
million to procure an additional two F-15E aircraft.
C-130J
       The budget request included $49.9 million for the 
procurement of one C-130J aircraft.
      The House bill would authorize an increase of $522.6 
million for an additional nine aircraft.
      The Senate amendment would authorize an increase of 
$371.1 million for five additional aircraft and associated 
logistic support.
      The conferees agree to authorize a total of $527.5 
million for eight additional C-130J aircraft and support as 
shown below:

                                                                     C-130 PROGRAMS                                                                     
                                                                  [Dollars in millions]                                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Budget request          House bill            Senate bill      Conference agreement
                              Type                               ---------------------------------------------------------------------------------------
                                                                   Quantity    Amount    Quantity    Amount    Quantity    Amount    Quantity    Amount 
--------------------------------------------------------------------------------------------------------------------------------------------------------
KC-130J.........................................................  .........  .........         +3     +179.7  .........  .........         +2     +120.0
WC-130J.........................................................  .........  .........  .........  .........         +3     +177.0         +2     +132.8
EC-130J.........................................................  .........  .........         +1      +49.9         +1      +70.5         +1      +74.6
C-130J..........................................................          1       49.9         +5     +293.0         -1      -49.9         -1      -49.9
C-130J ANG......................................................  .........  .........  .........  .........         +2      +95.8         +4     +226.0
  Logistics:                                                                                                                                            
    WC-130J.....................................................  .........  .........  .........  .........  .........      +29.7  .........  .........
    C-130J......................................................  .........  .........  .........  .........  .........      +48.0  .........      +24.0
                                                                 ---------------------------------------------------------------------------------------
      Total.....................................................          1       49.9         +9     +522.6         +5     +371.1         +8     +527.5
--------------------------------------------------------------------------------------------------------------------------------------------------------

Predator Unmanned Aerial Vehicle
       The budget request included $116.5 million for 15 
Predator unmanned aerial vehicles (UAV).
      The House bill would authorize an increase of $30.0 
million for the procurement of attrition UAV and spares.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $25.0 
million.
F-15 modifications
       The budget request included $169.6 million for F-15 
modifications.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $95.4 
million, including $72.6 million to restore a reduction in F-15 
modifications made by the Air Force in its budget request, and 
$22.8 million to accelerate by one year the incorporation of 
the PW-220E engine program.
      The conferees agree to authorize $181.4 million: an 
increase of $11.8 million, for F-15 modifications; a decrease 
of $5.0 million for terminated upgrades; an increase of $12.8 
million for the PW-220E engine program; and an increase of $4.0 
million for data link acceleration.
F-16 modifications
       The budget request included $216.2 million for F-16 
modifications.
      The House bill would authorize an increase of $20.0 
million for a digital terrain system (DTS).
      The Senate amendment would authorize an increase of $8.6 
million to procure non-developmental item (NDI) systems that 
incorporate in one pod the targeting and navigation functions 
of the low-altitude navigation and targeting infrared for night 
(LANTIRN) pods.
      The conferees agree to authorize $209.2 million for F-16 
modifications, a decrease of $7.0 million from the budget 
request. The $7.0 million reduction is the result of a 
reduction of $13.0 million for global positioning system (GPS), 
a reduction of $6.0 million for late obligations, offset by an 
increase of $12.0 million for DTS.
Passenger safety and global air traffic management
       Although the budget request included funds to modify 
some Air Force aircraft to comply with global air traffic 
management (GATM) requirements, there was no specific request 
for either GATM or passenger safety modifications for Air Force 
aircraft.
      The House bill would authorize an increase of $67.7 
million for GATM, but no increase for passenger safety 
modifications.
      The Senate amendment would authorize the budget request. 
The Senate report (S. Rept. 105-29) included specific direction 
to the Secretary of Defense to encourage the use of commercial 
off-the-shelf (COTS) technology and non-developmental item 
(NDI) solutions to GATMrequirements.
      The conferees agree to authorize an increase of $17.5 
million for the modification of Air Force aircraft to comply 
with GATM requirements, and $32.5 million for passenger safety 
modifications, to include initiation of navigation safety phase 
II modifications, the traffic collision avoidance system 
(TCAS), and the ground proximity warning system (GPWS), as 
directed by the Secretary of Defense. The conferees expect the 
Air Force to include in the fiscal year 1999 budget request and 
the Future Years Defense Program (FYDP) sufficient funding to 
complete these required upgrades.
Defense Airborne Reconnaissance Program
      Procurement for the Defense Airborne Reconnaissance 
Program (DARP) is contained in a number of procurement lines, 
distributed among the individual services and the defense-wide 
procurement account. The budget request included:
            (1) $67.1 million in Aircraft Procurement, Air 
        Force (APAF) line 60;
            (2) $141.5 million in APAF, line 73;
            (3) $12.8 million in Other Procurement, Air Force 
        (OPAF), line 111; and
            (4) $97.5 million in Procurement, Defense-wide 
        (PDW), line 7.
      The conferees agree to authorize increases in DARP 
procurement as shown below:

          DEFENSE AIRBORNE RECONNAISSANCE PROCUREMENT PROGRAMS          
                        [In millions of dollars]                        
------------------------------------------------------------------------
                                            Proposed change             
            Program              Budget  -------------------- Conference
                                 request    House    Senate    agreement
------------------------------------------------------------------------
Rivet Joint mods..............      61.1  ........  ........       61.1 
Rivet Joint technology                                                  
 transfer.....................  ........      20.0      20.0        5.6 
Combat Sent mods..............       6.0  ........  ........        6.0 
RC-135 re-engining............  ........      52.0  ........       27.4 
RJ Sensors and spares.........  ........  ........  ........       35.0 
SR-71 mods....................  ........  ........       9.0        9.0 
                               -----------------------------------------
      Subtotal--APAF 60.......      67.1      72.0      29.0      144.1 
                               =========================================
Budget Request................     141.5  ........  ........      141.5 
RC-135 re-engining............  ........  ........      54.8          0 
Senior Glass..................  ........  ........      13.0       24.0 
SYERS.........................  ........       5.0  ........        5.0 
                               -----------------------------------------
      Subtotal--APAF 73.......     141.5       5.0      67.8      170.5 
                               =========================================
DARP RC 135...................      12.8  ........  ........       12.8 
RJ Sensors and spares.........  ........      35.0  ........  ..........
                               -----------------------------------------
      Subtotal--OPAF 111......      12.8      35.0  ........       12.8 
                               =========================================
DARP..........................      97.4  ........  ........       97.4 
Common automatic recovery                                               
 system.......................  ........  ........       5.0  ..........
                               -----------------------------------------
      Subtotal--PDW 7.........      97.4  ........       5.0       97.4 
------------------------------------------------------------------------

Theater airborne warning system
      The budget request included no funds for the Theater 
Airborne Warning System (TAWS) program, which is designed to 
equip the existing fleet of Rivet Joint aircraft with a medium-
wave infrared sensor for ballistic missile detection.
      The House bill and Senate amendment would authorize an 
increase of $20.0 million for the TAWS program.
      The conferees agree to authorize an increase of $5.6 
million for the demonstration phase of the TAWS program. If 
this phase of the program proves to be successful, the 
conferees would be supportive of moving into the procurement 
phase in order to equip the Rivet Joint fleet with this 
capability.
Overview
      The budget request for fiscal year 1998 contained an 
authorization of $404.0 million for Ammunition Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $437.0 million. The Senate amendment would authorize 
$420.8 million. The conferees recommended an authorization of 
$398.5 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.


Overview

    The budget request for fiscal year 1998 contained an 
authorization of $2,557.7 million for Missile Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $2,389.2 million. The Senate amendment would 
authorize $2,411.2 million. The conferees recommended an 
authorization of $2,376.3 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


AGM-130 powered GBU-15

    The budget request included $1.5 million for AGM-130 
management, administration, and contractor support.
    The House bill would authorize an increase of $41.0 million 
for the procurement of 100 AGM-130 missiles.
    The Senate amendment would authorize the budget request.
    The conferees agree to authorize $25.0 million, an increase 
of $23.5 million for AGM-130.

AGM-65 Maverick

    The budget request included no funds for AGM-65 
modifications.
    The House bill would authorize $11.0 million for AGM-65 
modifications.
    The Senate amendment would authorize the budget request.
    The conferees understand that early-generation models of 
the AGM-65 require upgrading to further extend their longevity. 
The conferees are aware that the gap between the completion of 
testing and the beginning of production could significantly 
increase the cost of the upgrade, as well as unacceptably delay 
its fielding. Therefore, the conferees agree to authorize an 
increase of $8.0 million to eliminate any gap with low-rate 
production and to ensure a smooth transition to full-rate 
production, which the conferees assume will occur in fiscal 
year 1999.
Overview
      The budget request for fiscal year 1998 contained an 
authorization of $6,561.3 million for Other Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $6,574.1 million. The Senate amendment would 
authorize $6,798.5 million. The conferees recommended an 
authorization of $6,543.6 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Theater deployable communications

      The budget request included $17.0 million for the 
procurement of tactical communications and electronics 
equipment.
      The House bill would authorize an increase of $25.0 
million for theater deployable communications equipment as part 
of its National Guard and Reserve Equipment package.
      The Senate amendment would authorize an increase of $38.0 
million for theater deployable communications equipment.
      The conferees agree to authorize an increase of $18.0 
million for procurement of theater deployable communications 
equipment.

Overview

      The budget request for fiscal year 1998 contained an 
authorization of $1,695.1 million for Defense-wide Procurement 
in the Department of Defense. The House bill would authorize 
$1,837.0 million. The Senate amendment would authorize $1,749.3 
million. The conferees recommended an authorization of $2,057.2 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Automated document conversion system
      The budget request included no funds for the automated 
document conversion system (ADCS).
      The House bill would authorize $30.0 million for ADCS.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $20.0 million for ADCS.
Advanced SEAL delivery system
      The budget request included $43.2 million for the special 
operations Advanced SEAL Delivery System program.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees agree to a total authorization of $8.9 
million and the transfer of $34.3 million to PE 116404BB, as 
discussed in Title II of this conference agreement.
Night firing scopes
      The budget request included $10.3 million for special 
operations small arms procurement.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $2.4 
million for night vision scopes for the M4 carbine.
      The conferees agree to authorize an increase of $1.0 
million for night vision scopes.
Overview
      The budget request for fiscal year 1998 contained no 
authorization for National Guard and Reserve Procurement in the 
Department of Defense. The House bill would authorize $700.4 
million. The Senate amendment would authorize $653.0 million. 
The conferees recommended an authorization of $643.0 million. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.

Overview

      The conferees recognize the increasingly critical role 
that reserve component forces play in worldwide deployments and 
are concerned about current and prior year levels of funding 
for reserve component modernization. It is essential that both 
active and reserve component leadership work together to 
identify total force modernization requirements and ensure that 
these requirements are funded. The conferees strongly encourage 
the Department of Defense to work closely with each of the 
military departments to ensure the modernization of the reserve 
components.
      The budget request included $968.5 million, as shown in 
the table below, for National Guard and Reserve equipment.

National Guard and Reserve Equipment and Aircraft

                                                                Millions
Procurement of WTCV, Army......................................... $22.1
Procurement of Ammunition, Army................................... 143.8
Other Procurement, Army........................................... 382.9
Aircraft Procurement, Navy........................................  35.1
Procurement of Ammunition (Navy & Marine Corps)...................   6.0
Other Procurement, Navy...........................................   3.9
Procurement, Marine Corps.........................................  17.9
Aircraft Procurement, Air Force................................... 238.2
Procurement of Ammunition, Air Force..............................  29.5
Other Procurement, Air Force......................................  89.2
                        -----------------------------------------------------------------
                        ________________________________________________
        Department of Defense total............................... 968.5

      The conferees agree to authorize funding increases for 
reserve component programs as follows:

                                                                Millions
UH-60 Blackhawk................................................... $89.0
M109A6 Paladin....................................................  56.0
Field Artillery Ammunition Support Vehicles.......................  40.0
Heavy Equipment Transporter vehicles..............................  45.0
Bradley Fighting Vehicle upgrades.................................  95.0
Theater Deployable Communications.................................  18.0
Airborne Mine Counter-Measure equipment...........................   7.5
KC-135 re-engining................................................  52.0
F-16 Improved Avionics Intermediate Shop..........................  16.0
C-130 aircraft.................................................... 433.4
                        -----------------------------------------------------------------
                        ________________________________________________
      Total increase.............................................. 851.9

      Additionally, the conferees agree to authorize an 
increase of $365.0 million to the budget request for National 
Guard and Reserve miscellaneous equipment:

                                                                Millions
Army Reserve
    Miscellaneous................................................. $75.0
Navy Reserve
    Miscellaneous.................................................  80.0
Marine Corps Reserve
    Miscellaneous.................................................  65.0
Air Force Reserve
    Miscellaneous.................................................  50.0
Army National Guard
    Miscellaneous.................................................  70.0
Air National Guard
    Miscellaneous.................................................  25.0
                        -----------------------------------------------------------------
                        ________________________________________________
        Total Miscellaneous equipment............................. 365.0

      The conferees direct that the miscellaneous funding be 
allocated exclusively by reserve component chiefs and that 
reserve component chiefs give priority consideration to the 
following items: medium truck extended service programs; 
carrier modifications; CH-47 helicopters; multiple launch 
rocket systems; Avenger air defense systems (including table 
top trainers); training simulator devices; night vision 
equipment; mobile backscatter truck inspection system; heavy 
expanded mobility tactical truck (HEMTT) wrecker; HEMTT fuel 
tanker conversion kit; all terrain crane (20 ton); Atlas 10K 
variable reach forklift; barge derrick; reverse osmosis water 
purification unit, 3 thousand gallons per hour; 5KW generator 
set; MK-19 grenade machine gun; F/A-18 modifications; C-9 
replacement aircraft; SH-60B Seahawk helicopter; mobile inshore 
underwater van upgrades; logistics vehicle system (LVS); MK 48 
front power unit; LVS rear body units; F/A-18+ modifications; 
CH-53E helicopters; F-16 situational awareness data link; F-16 
laser designator/targeting pods; A-10 situational awareness 
data link; A-10 electronic warfare management system; F-16 
upgraded data transfer unit; HH-60 helicopter self protection 
system; F-16 electronic warfare management system; ALQ-131 
multiplexer bus interface; C-130 integrated electronic warfare 
suite; enhanced flightline security systems; combat arms 
training equipment; C-5 simulator; vibration management 
enhancement program; 5 ton truck; maneuver control system; CH-
47D full authority digital engine control; small arms 
engagement skills trainers; CH-47D fuel cells; M917 dump 
trucks; B-1 enhancements; F-16/A-10 digital transfer cartridge; 
and F-16 C/D onboard oxygen generating system.
      Funding allocated by reserve component chiefs for 
miscellaneous equipment must meet the following criteria:
            (1) there is a requirement for the equipment that 
        has been validated by the Joint Requirements Oversight 
        Council;
            (2) that such equipment is included for reserve 
        component modernization in the future-years defense 
        program;
            (3) that such equipment is consistent with the use 
        of reserve component forces called for in Department 
        warplans; and
            (4) the funds can be obligated during the fiscal 
        year for which funds have been authorized and 
        appropriated.
      Overall, the conferees agree to authorize a total of $2.2 
billion for National Guard and Reserve equipment and aircraft.

Overview

      The budget request for fiscal year 1998 contained an 
authorization of $620.7 million for Chemical Agent and 
Munitions Destruction, Army in the Department of Defense. The 
House bill would authorize $610.7 million. The Senate amendment 
would authorize $614.7 million. The conferees recommended an 
authorization of $600.7 million. Unless noted explicitly in the 
statement of managers, all changes are made without prejudice.


                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

Chemical agents and munitions destruction program (sec. 107)

      The budget request included $620.7 million for the 
defense chemical agents and munitions destruction program, to 
include: $472.2 million for operation and maintenance; $82.2 
million for procurement; and $66.3 million for research and 
development. Additionally, the budget request included $131.6 
million for military construction.
      The House bill contained a provision (sec. 107) that 
would authorize $610.7 million for the chemical agents and 
munitions destruction program.
      The Senate amendment contained a provision (sec. 107) 
that would authorize $614.7 million for the chemical agents and 
munitions destruction program, including an increase of $4.0 
million for research and development to expedite and accelerate 
the development and fielding of critical advanced sensors that 
are part of the Army's mobile munitions assessment system.
      The Senate recedes with an amendment.
      The conferees agree to a provision (sec. 107) that would 
authorize $600.7 million for the defense chemical agents and 
munitions destruction program, to include: $72.2 million for 
procurement; $462.2 million for operation and maintenance; and 
$66.3 million for research and development. Of the amount 
authorized for research and development, $4.0 million shall be 
available to expedite and accelerate the development and 
fielding of critical advanced sensors that are part of the 
Army's mobile munitions assessment system.

Conduct of the chemical agents and munitions destruction program

      Section 152 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106), directed the Secretary 
of Defense to conduct an assessment of the chemical stockpile 
disposal program and to consider measures that could be taken 
to reduce program costs, while continuing to ensure the maximum 
protection of the public, the workers, and the environment. 
Section 152 also required the Secretary to report the results 
of the assessment to the Congress with the submission of the 
fiscal year 1998 defense budget request. Consideration of the 
use of alternative demilitarization technologies (other than 
incineration) was to be specifically addressed.
      The conferees support the Department of Defense (DOD) 
position and the National Research Council recommendation that 
the Army proceed with the current baseline incineration program 
until the evaluation of alternative chemical munitions 
destruction technologies is concluded. The conferees note the 
progress made in chemical demilitarization operations at 
Johnston Atoll and Tooele, Utah, the approval of environmental 
permits, and the award of the chemical demilitarization 
facility construction contract at Umatilla, Oregon, and the 
status of the environmental permitting process for the chemical 
demilitarization sites at Anniston, Alabama, and Pine Bluff 
Arsenal, Arkansas.
      The conferees support the Department's decision to 
continue efforts to develop chemical neutralization 
technologies for destruction of the chemical agents at the 
bulk-only chemical storage sites. The conferees urge the 
appropriate and expeditious pursuit of any necessary National 
Environmental Policy Act (NEPA) analysis of the research and 
development efforts to support pilot testing of these 
alternative technologies for use at Aberdeen Proving Ground, 
Maryland, and Newport Chemical Depot, Indiana.
      The conferees also agree with plans by the Department to 
assess the feasibility of alternative technologies for 
destruction of lethal chemical agents associated with assembled 
chemical munitions and would support the demonstration of those 
alternatives deemed feasible for potential use at the chemical 
demilitarization sites at Pueblo, Colorado, and Lexington-Blue 
Grass Army Depot, Kentucky. As required by Section 142 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 104-201), the conferees expect the Secretary of Defense to 
submit a report to the Congress by December 31, 1997, that 
identifies the status of the assessment, the technologies that 
appear to be feasible, the plans for further assessment and 
demonstration of these technologies, and the potential impact 
on the cost and schedule for completion of destruction 
operations at Pueblo and Lexington-Blue Grass.
      The conferees understand that a major aspect of the 
chemical non-stockpile materiel project is the development of a 
system for disposal of the chemical agent identification kits, 
which have been classified as chemical weapons/agents for the 
purpose of the chemical disposal program, rather than hazardous 
waste. The conferees direct the Secretary of Defense to conduct 
an assessment of its policy, which includes chemical agent 
identification kits in the chemical agent demilitarization 
program, the current plans for disposal, and the potential 
changes in policy and disposal alternatives that could result 
in significant reductions in the cost of the non-stockpile 
program with no reduction in overall program safety. The 
assessment shall be conducted in coordination with the National 
Research Council. The results of the assessment and the 
Secretary's decision should be provided to the congressional 
defense committees by March 31, 1998.

Chemical stockpile emergency preparedness program (CSEPP)

      The conferees note the actions taken by the DOD and the 
Army to improve management of the chemical weapons 
demilitarization program and to make the program more 
responsive to community concerns. The conferees believe that 
the Army and the DOD must continue to emphasize the involvement 
of the communities with chemical stockpile storage sites that 
are part of the program's decision-making process. The 
conferees also note progress in improving emergency 
preparedness planning and preparations by both states and local 
communities near the chemical stockpile storage sites, but 
believe that continued effort is required.
      Section 1076(a) of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201) directed the 
Secretary of the Army to submit a report to the Congress that 
would assess the successful implementation of site specific 
integrated product and process teams (IPT) as a management tool 
for the chemical stockpile emergency preparedness program 
(CSEPP). On July 9, 1997, the Secretary of Defense advised the 
Congress that the Army and the Federal Emergency Management 
Agency (FEMA) had reached an agreement on the implementation 
and establishment of the site-specific IPTs, and advised the 
Congress of changes in the management of the CSEPP. The 
conferees understand that under the terms of the agreement 
between the Army and FEMA, the State and local community 
governments would be given the flexibility they need to 
implement the emergency preparedness program. Under the 
agreement, funding for, and the conduct of on-post emergency 
preparedness and technical support for on-post and off-post 
emergency preparedness will remain the responsibility of the 
Army. FEMA will assume responsibility and accountability for 
working with State and local governments to enhance the 
required off-site emergency preparedness capabilities within 
established resources. The conferees are aware that the 
Director of FEMA intends to empower the FEMA regional offices 
with the primary responsibility and accountability for working 
with the State and local communities, and to restructure FEMA 
headquarters operations to create a more efficient and cost-
effective management structure.
      The conferees understand that the Army and FEMA believe 
that legislative authority is necessary to codify the agreement 
between the Army and FEMA. The conferees note that FEMA already 
possesses considerable authority for off-site emergency 
preparedness under existing law and that the fiscal year 1998 
budget contained no formal proposal to establish a separate 
defense-related activities program account for FEMA. The 
conferees direct the Secretary of Defense to submit any 
proposed legislative changes and the budget for the CSEPP in 
the fiscal year 1999 DOD budget request. The congressional 
defense committees will review any proposed legislation and the 
budget request for CSEPP during consideration of the fiscal 
year 1999 budget request, as well as progress made in emergency 
preparedness, the implementation of the site-specific IPT, and 
the working relationships among Federal, State, and local 
authorities involved in the CSEPP.

                       Subtitle B--Army Programs

Army helicopter modernization plan (sec. 111)

      The Senate amendment contained a provision (sec. 111) 
that would require the Army to provide a plan to the Congress 
that would address current and future helicopter modernization 
requirements and proposed funding. Specifically, the provision 
would require the Army to report on the following:
            (1) A detailed assessment of the Army's present and 
        future helicopter inventory, including number of 
        aircraft, age of aircraft, availability of spare parts, 
        flight hour costs, roles and functions assigned to the 
        fleet as a whole and to its individual types of 
        aircraft, and the mix of active component and reserve 
        component aircraft in the fleet;
            (2) Estimates and analysis of requirements and 
        funding proposed for procurement of new aircraft;
            (3) An analysis of requirements and funding 
        proposed for extended service plans or service life 
        extension plans for fleet aircraft;
            (4) A plan for retiring aircraft no longer required 
        or capable of performing assigned functions, including 
        a discussion of opportunities to eliminate older 
        aircraft models and to focus future funding on current 
        or future generation aircraft;
            (5) The implications of the plan for the defense 
        industrial base;
      The provision would require the Secretary of the Army to 
certify that the plan would be funded in the Future Years 
Defense Program submitted to Congress in Fiscal Year 1998 and 
would limit the obligation of funds to no more than 25 percent 
of the amounts authorized to be appropriated for helicopter 
modifications or upgrades until 30 days after the aircraft 
modernization plan is provided to the congressional defense 
committees.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
obligation of funds to 80 percent of funds authorized for 
helicopter modifications and would require the Secretary of the 
Army to design the plan so that it could be funded within the 
funding levels expected to be available for Army aircraft 
programs in the next Future Years Defense Program.

Multiyear procurement authority for specified Army programs (sec. 112)

      The Senate amendment contained a provision (sec. 112) 
that would authorize the Secretary of the Army to enter into a 
multiyear procurement contract, beginning with fiscal year 
1998, for the procurement of the AH-64D fire control radar 
system. The Senate amendment contained an additional provision 
(sec. 113) that would authorize the Secretary of the Army to 
enter into a multiyear procurement contract, beginning with 
fiscal year 1998, for the procurement of trucks associated with 
the family of medium tactical wheeled vehicles.
      The House bill contained no similar provisions.
      The House recedes.

M113 vehicle modifications (sec. 113)

      The conferees agree to a legislative provision (sec. 113) 
that would make available $35.2 million only for procurement 
and installation of A3 upgrade kits for the M113 vehicle.

                       Subtitle C--Navy Programs

New Attack Submarine program (sec. 121)

      The budget request included $284.8 million for advance 
procurement of components for future nuclear attack submarines, 
and proposed a change in the acquisition strategy contained in 
the National Defense Authorization Act for Fiscal Year 1997 
that directed competition between two submarine shipbuilders. 
The proposed change in strategy includes a contractor teaming 
agreement to build the first four new attack submarines.
      The House bill authorized the budget request and 
contained no provision on submarine teaming.
      The Senate amendment contained a provision (sec. 121) 
that would authorize the Secretary of the Navy to enter into a 
contract or contracts for the construction of four nuclear 
attack submarines under the terms of a teaming arrangement 
between Electric Boat and Newport News Shipbuilding.
      The House recedes.

CVN-77 Nuclear Aircraft Carrier program (sec. 122)

      The budget request included no funding for CVN-77.
      The House bill would authorize the budget request.
      The Senate amendment contained a provision (sec. 122) 
that would:
            (1) authorize $345.0 million for procurement and 
        construction of components for the CVN-77 aircraft 
        carrier and authorize the Secretary of the Navy to 
        enter into a contract or contracts with the carrier 
        shipbuilder for such purposes;
            (2) authorize $35.0 million for research, 
        development, test, and evaluation of technologies that 
        have potential for use in the CVN-77; and
            (3) direct the Secretary to structure the 
        procurement of the CVN-77 so that the carrier is 
        acquired for an amount not to exceed $4.6 billion, with 
        allowances for adjustments to this amount due to:
                    (a) outfitting and post delivery costs,
                    (b) inflation occurring after or compliance 
                with changes in Federal, state, or local laws 
                enacted after September 30, 1997,
                    (c) increases or decreases in costs 
                attributable to new technology built into CVN-
                77 as compared to the technology built into the 
                baseline design of the CVN-76, and
                    (d) increases or decreases in costs 
                resulting from changes the Secretary proposes 
                in the funding plan of the so-called Smart Buy 
                proposal on which the projected savings are 
                based.
      The House recedes with an amendment which would:
            (1) authorize the Secretary of the Navy to procure 
        the CVN-77 subject to the availability of 
        appropriations for that purpose;
            (2) authorize $50.0 million for advance procurement 
        and advance construction of components for the CVN-77 
        and authorize the Secretary of the Navy to enter into a 
        contract or contracts for such purposes;
            (3) permit the Secretary of Defense to transfer up 
        to $295.0 million to the CVN-77 program and allow this 
        transfer to be made in addition to the transfer 
        authority limit provided for elsewhere in the National 
        Defense Authorization Act for Fiscal Year 1998;
            (4) direct the Secretary of the Navy to obligate 
        and expend the funds available for advance procurement 
        and advance construction of carrier components for the 
        CVN-77 in fiscal year 1998 in a manner that is designed 
        to result in cost savings that will meet a cost 
        limitation of $4.6 billion for the procurement of that 
        vessel;
            (5) direct the Secretary of Defense to make plans 
        to attain the cost savings in the funding plan 
        presented to Congress by the ship builder in March 
        1997; and
            (6) direct the Secretary of the Navy to structure 
        and manage the CVN-77 procurement program so that the 
        $4.6 billion cost limitation is not exceeded, except 
        for adjustments to this amount resulting from:
                    (a) outfitting and post delivery costs,
                    (b) inflation occurring after or compliance 
                with changes in Federal, state, or local laws 
                enacted after September 30, 1997,
                    (c) increases or decreases in costs 
                attributable to new technology built into CVN-
                77 as compared to the technology built into the 
                baseline design of the CVN-76, and
                    (d) increases or decreases in costs 
                resulting from changes the Secretary proposes 
                in the funding plan on which the projected 
                savings are based.
      The conferees support construction of the CVN-77 and 
believe that initiating advance procurement for it in fiscal 
year 1998, rather than in fiscal year 2000 as currently 
projected in the Future Years Defense Program (FYDP), has the 
potential to produce considerable savings if additional funds 
are provided in fiscal years 1998 through 2001. Therefore, the 
conferees strongly encourage the Secretary of Defense to make 
available up to $295.0 million in fiscal year 1998 and to 
include in the FYDP accompanying the fiscal year 1999 budget 
request the funding necessary to achieve the savings required 
to remain within the $4.6 billion cost limitation.

Exclusion from cost limitation for Seawolf submarine program (sec. 123)

      The Senate amendment contained a provision (sec. 123) 
that would reaffirm the existing cost cap for Seawolf 
submarines but would make it clear that certain costs 
associated with now canceled Seawolf submarines should not be 
taken into account.
      The House bill contained no similar provision.
      The House recedes with an amendment that would exclude 
from the cost limitation for the Seawolf submarine program 
$272.4 million initial class design costs that were previously 
allocated to other canceled ships in the class. The amendment 
would also require the Inspector General of the Department of 
Defense to determine whether:
            (1) the request of the Secretary of the Navy for 
        exclusion of $745.4 million of the costs associated 
        with canceled submarines is justified; and
            (2) any further exclusions from or increases to the 
        cost cap will be required.
      The Inspector General shall report the findings to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives not later 
than March 30, 1998.

                     Subtitle D--Air Force Programs

Authorization for B-2 bomber program (sec. 131)

      The budget request included $174.1 million for 
modification of aircraft on order or already in the inventory 
to the Block 30 configuration.
      The House bill would authorize an increase of $331.2 
million for long lead funding for an additional nine aircraft 
above the 21 already authorized.
      The Senate amendment would authorize the budget request 
and included a provision (sec. 131) that would prohibit the use 
of any funds to procure any additional B-2 bomber aircraft or 
to maintain any part of bomber industrial base solely for the 
purpose of preserving the option to procure additional B-2 
bomber aircraft in the future.
      The Senate recedes with an amendment.
      The conferees agree to authorize $331.2 million to be 
used either for long lead activities related to the procurement 
of additional B-2 aircraft, or for modification and repair of 
the existing fleet of B-2 bomber aircraft, depending on the 
President's determination of the requirement for additional B-2 
aircraft.
      The provision would also direct the Secretary of Defense 
to ensure that all appropriate actions are taken to preserve 
the options of the President until submission of the report 
required by section 8131 of the Department of Defense 
Appropriations Act for fiscal year 1998.

ALR radar warning receivers (sec. 132)

      The Senate amendment contained a provision (sec. 132) 
that would require a study of the comparative effectiveness of 
upgrading the ALR-69 radar warning receiver and further 
acquisition of the ALR-56M radar warning receiver.
      The House bill contained no similar provision.
      The House recedes.

Analysis of requirements for replacement of engines on military 
        aircraft derived from Boeing 707 aircraft (sec. 133)

      The Senate amendment contained a provision (sec. 142) 
that would require a study of re-engining priorities, options, 
and benefits for military aircraft derived from Boeing 707 type 
aircraft.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the requirements for the study.

                       Subtitle E--Other Matters

Pilot program on sales of manufactured articles and services of certain 
        army industrial facilities without regard to availability from 
        domestic sources (sec. 141)

      The Senate amendment contained a provision (sec. 143) 
that would authorize Army industrial facilities to sell 
articles or services to an entity that will incorporate those 
articles or services into a weapon system to be procured by the 
Department of Defense or will use those articles or services to 
manufacture weapon systems that will be ultimately procured by 
the Department of Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
a two-year pilot program for not more than three facilities and 
require a review by the Inspector General of the Department of 
Defense.

NATO Joint Surveillance/Target Attack Radar System (sec. 142)

      The Senate amendment contained a provision (sec. 144) 
that would allow the Secretary of Defense to initiate contracts 
for Phase I of a NATO Alliance Ground Surveillance (NATO AGS) 
capability based on the Joint Surveillance/Target Attack Radar 
System (JSTARS) following the conclusion of a cooperative 
project agreement for a NATO AGS. The Senate amendment would 
also authorize the transfer of funds from U.S. JSTARS to the 
NATO AGS program, and would allow for the modification of two 
Air Force JSTARS aircraft into a NATO configuration.
      The House bill contained no similar provision.
      The House recedes.

                   Legislative Provisions Not Adopted

Limitation on obligation of funds for the Seawolf submarine program

      The House bill contained a provision (sec. 121) that 
would prohibit the obligation of more than 50 percent of the 
fiscal year 1998 funds authorized and appropriated for the 
Seawolf submarine until the Secretary of the Navy certifies 
that not less than 50 percent of the New Attack Submarine 
technology insertion opportunities for the first four 
submarines were included in the Future Years Defense Program 
accompanying the fiscal year 1999 budget request.
      The Senate amendment contained no similar provision.
      Having received written assurance from the Secretary that 
the fiscal year 1999 budget request will comply with the 
provision in the House bill, the House recedes.

Reduction in authorization of appropriations

      The Senate amendment contained a provision (sec. 110) 
that would reduce funds available to the Department of Defense 
for Advisory and Assistance Services by $30.0 million.
      The House bill contained no similar provision.
      The Senate recedes.

Airborne self-protection jammer

      The Senate amendment contained a provision (sec. 124) 
that would place a limitation on the resumption of serial 
production of the Airborne Self-Protection Jammer, pending a 
certification by the Secretary of Defense.
      The House bill contained no similar provision.
      The Senate recedes.

Prohibition on use of funds for acquisition or alteration of private 
        drydocks

      The Senate amendment contained a provision (sec. 141) 
that would prevent the use of DOD funds for the expansion of 
private drydocks.
      The House bill contained no similar provision.
      The Senate recedes.

         Title II--Research, Development, Test, and Evaluation

Overview

      The budget request for fiscal year 1998 contained an 
authorization of $35,934.5 million for Research and Development 
in the Department of Defense. The House bill would authorize 
$37,273.7 million. the Senate amendment would authorize 
$36,957.0 million. The conferees recommended an authorization 
of $36,537.0 million. Unless noted explicitly in the statement 
of managers, all changes are made without prejudice.


Overview

      The budget request for fiscal year 1998 contained an 
authorization of $4,510.8 million for Army, Research and 
Development in the Department of Defense. The House bill would 
authorize $4,752.9 million. The Senate amendment would 
authorize $4,745.5 million. The conferees recommended an 
authorization of $4,633.5 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


                          FUNDING EXPLANATIONS

University and industry research centers

      The budget request included $45.5 million in PE 61104A 
for university and industry research centers.
      The House bill would authorize an increase of $1.9 
million in PE 61104A for electromechanics and hypervelocity 
physics.
      The Senate amendment would authorize an increase of $2.3 
million in PE 61104A for the Army federated laboratory advanced 
telecommunications and information distribution research 
program (ATIRP).
      The conferees agree to authorize an increase of $1.0 
million for electromechanics and hypervelocity physics. The 
conferees also agree to authorize $2.3 million of the remaining 
funds for the establishment of the ATIRP.

Combat vehicle and automotive advanced technology

      The budget request included $33.1 million for Combat 
Vehicle and Automotive Advanced Technology (PE 62601A).
      The House bill authorized an increase of $11.0 million 
for a variety of innovative research projects.
      The Senate amendment would authorize an increase of $4.0 
million for the National Automotive Center to fund cooperative 
contracts using matching funds (PE 62601A).
      The conferees agree to authorize $40.612 million in PE 
62601A, an increase of $7.5 million: $4.0 million for continued 
funding of cooperative and dual-use contracts to integrate 
commercial automotive technology into Army vehicles; $1.0 
million for completion of the High Output Diesel Engine (HODE) 
project; and $2.5 million for new alternative vehicle 
propulsion efforts with industry and academia, including, but 
not limited to, innovation or improvements related to diesel, 
internal combustion, fuel cell, and electric propulsion 
technologies.
      The conferees commend the National Automotive Center for 
its efforts to improve the automotive technology available in 
Army ground vehicle systems while reducing the operating and 
support costs, particularly through the use of affordable 
commercial technology, competitive procedures, and matching 
funds from industry.

Plastic cased ammunition

      The budget request included $18.2 million in PE 63004A 
for weapons and munitions advanced technology.
      The House bill would authorize an increase of $8.0 
million in PE 63004A: $5.0 million for electro-rheological 
fluids recoil for future artillery systems; and $3.0 million 
for plastic cased ammunition.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million forplastic cased ammunition research in PE 62624A. The 
conferees also agree to authorize a reduction of $1.1 million, without 
prejudice, in PE 62624A.

Electronics and electronic devices

      The budget request included $20.2 million in PE 62705A 
for research and development in electronics and electronic 
devices.
      The House bill would authorize an increase of $5.0 
million for field battery recharging capability 
(thermophotovoltaic) research and $3.0 million for battery 
manufacturing technology.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase: $1.5 
million for field battery recharging capability 
(thermophotovoltaic) research; and $1.5 million for 
manufacturing technology research associated with AA zinc 
batteries for military applications.

Bioremediation, education, science, and technology program

      The budget request included $17.5 million for 
environmental quality technology within PE 62720A. The budget 
request included no funds in that program element for the 
bioremediation, education, science, and technology program 
(BEST), which supports multidisciplinary research and education 
in bioremediation science.
      The House bill would authorize an additional $4.0 million 
in PE 62720A for the BEST program.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
      The conferees expect that the use of additional funds for 
BEST will provide a direct benefit to the Department of Defense 
efforts in the area of bioremediation.

Plasma energy pyrolysis system

      The budget request included $17.5 million for 
environmental technology in PE 62720A. No funding was 
specifically identified for the Plasma Energy Pyrolysis System 
(PEPS) technology.
      The House bill and Senate amendment would authorize $8.7 
million for PEPS technology.
      The conferees agree to an increase of $6.0 million in PE 
62720A for the ongoing joint effort between the U.S. Army 
Environmental Center/Environmental Technology Division and the 
Tennessee Valley Authority/Muscle Shoals Environmental Research 
Center to develop, demonstrate, and validate the PEPS 
technology.
      The purpose of PEPS is to develop plasma technology as a 
method of producing heat for the breakdown of waste materials. 
The Muscle Shoals Environmental Research Center provides a 
level of technical expertise that stems from forty years of 
experience in working with electric arc furnaces, a thermal 
process similar to PEPS. For that reason, the participation of 
the Muscle Shoals Environmental Research Center is a necessary 
element of PEPS. However, the conferees direct that no more 
than 15 percent of the PEPS funds be made available forthe 
participation of the Muscle Shoals Environmental Research Center.
      The goals of the PEPS program are to evaluate the 
capability of plasma technology for the destruction of 
hazardous components, verify slag suitability for regular 
landfill disposal, identify potential hazards associated with 
the process emissions, and develop qualified cost estimates for 
the future use of the process on large scale operations. The 
conferees direct the Secretary of the Army to report to the 
congressional defense committees on the progress made in 
meeting these goals with fiscal year 1998 funds.

Radford Environmental Development and Management Program

      The budget request included $17.5 million for 
environmental quality technology within PE 62720A. No funding 
was specifically identified to support the development of an 
integrated environmental and pollution prevention management 
and control system through the Radford Environmental 
Development and Management Program (REDMAP).
      The House bill would direct the Secretary of the Army to 
ensure adequate support for the REDMAP initiative within funds 
authorized for environmental quality technology.
      The Senate amendment would authorize an increase of $5.0 
million in PE 62720A to support REDMAP.
      The conferees agree to authorize an increase of $5.0 
million in PE 62720A for REDMAP. The conferees note that some 
of the basic research necessary for REDMAP has already been 
accomplished through the Facility Environmental Management and 
Monitoring System (FEMMS) at Tobyhanna Army Depot, 
Pennsylvania. The conferees expect that REDMAP will use 
relevant information developed through FEMMS.

Military engineering technology

      The budget request included $36.4 million in PE 62784A 
for military engineering technology.
      The Senate amendment would authorize an increase of $5.0 
million in PE 62784A: $1.0 million to enhance research in 
combat support, combat engineering, and base facility 
construction, operations, and maintenance at locations subject 
to cold weather; and $4.0 million for energy efficient military 
applications.
      The House bill would authorize the budget request.
      The conferees agree to an increase of $1.0 million in PE 
62784A for cold weather research. The conferees also agree to 
an increase of $4.0 million in PE 65856A for fuel cell military 
applications as mentioned elsewhere in the report.

Medical advanced technology

      The budget request included $10.6 million in PE 63002A 
for medical advanced technology.
      The House bill would authorize an increase of $5.8 
million in PE 63002A: $3.5 million for virtual reality 
emergency medical telemedicine (VREMT); and $2.3 million for 
telemedicine technology.
      The Senate amendment would authorize an increase of $4.6 
million in PE 63002A: $1.0 million for intravenous membrane 
oxygenator; and $3.6 million for Meals Ready-to-Eat nutrition 
research.
      The conferees agree to authorize an increase of $2.5 
million for VREMT. The conferees also agree to authorize an 
increase of $3.5 million for nutrition research in PE 62787A.

Combat vehicle and automotive advanced technology

      The budget request included $32.7 million to develop 
combat vehicle and automotive technologies.
      The House bill would authorize an increase of $3.0 
million to support development of advanced composite materiel 
and electric drive technology.
      The Senate amendment would authorize an increase of $9.0 
million to further explore aluminum metal matrix technologies.
      The conferees agree to authorize a total of $38.7 million 
in PE 63005A. Of this amount, $2.0 million is for advanced 
composite materiel development and $6.5 million is for aluminum 
metal matrix technologies.

Information systems technology, superiority, and security

      The budget request included $544.4 million for 
information systems and information technology research, 
development, test, and evaluation. Of that amount, $306.0 
million was for information security research, development, 
test, and evaluation.
      The House bill would authorize the following increases to 
the budget request:
            (1) $2.0 million in PE 63006A for tactical internet 
        command and control protection;
            (2) $6.7 million in PE 65604A for information 
        operations/warfare survivability analysis of command, 
        control, communications, and computers/information 
        electronic warfare systems;
            (3) $1.6 million in PE 33150A for development and 
        application of information protection measures for the 
        Army's component of the global command and control 
        systems for the U.S. European Command; and
            (4) $2.7 million in PE 33140F for the Air Force 
        information protection program.
      The House report (H. Rept. 105-132) would also direct the 
Secretary of Defense to provide to the congressional defense 
committees, with the submission of the fiscal year 1999 budget 
request, an assessment of the progress in the Department's 
information systems security program that addresses the current 
status of the program, specific actions being taken on the 
recommendations of the 1996 Defense Science Board Task Force on 
Information Warfare-Defense, and additional actions that should 
be taken to assure the increased security and integrity of the 
Defense information infrastructure. The House report would also 
require the Secretary to address measures necessary to assure 
the integrity of those elements of the National Information 
Infrastructure on which the Defense Information Infrastructure 
depends, and to identify any additional resources and 
legislative authority which might be required.
      The Senate amendment would authorize the budget request.
      The House recedes from its recommendation for additional 
funding. The conferees, however, share the views expressed in 
the House report regarding the need to treat information 
technology as a vital strategic resource, and the need to 
address the potential vulnerabilities of the information 
infrastructure. The conferees direct the Secretary of Defense 
to submit to the congressional defense committees the 
assessment of the Department's information systems security 
program as discussed in the House report.

Missile and rocket advanced technology

      The budget request included $117.1 million to develop 
missile technologies.
      The House bill would authorize a decrease of $57.7 
million for the enhanced fiber-optic guided missile (EFOG-M) 
program.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $31.4 million to 
continue development of EFOG-M technologies and complete the 
advanced concept technology demonstration (ACTD) planned for 
fiscal year 1998. The conferees further direct that funds 
provided for the ACTD be used exclusively for that activity and 
not for procurement of additional missiles beyond those 
required for the evaluation. The conferees also agree to 
authorize an additional $3.0 million for the future missile 
technology insertion program for a total authorization of $93.8 
million for PE 63313A.

Landmine warfare and barrier advanced technology

      The budget request included $19.3 million to develop 
landmine detection technologies.
      The House bill would authorize an additional $5.0 million 
for countermine technologies.
      The Senate amendment would authorize an additional $6.6 
million to support development and testing of vehicular mounted 
mine detector technologies.
      The conferees agree to authorize $27.0 million in PE 
63606A, an increase of $2.7 million for the vehicular mounted 
mine detection system and an additional $5.0 million for 
countermine technology development.

Joint service small arms program

      The budget request included $4.8 million to conduct joint 
development of future small arms requirements.
      The House bill would authorize an increase of $7.0 
million to support development of the objective individual 
combat weapon (OICW) and advanced light anti-armor weapon 
system (ALAWS) technology.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $4.5 
million in PE 63607A. Of this amount, $3.0 million is for OICW 
and $1.5 million is for ALAWS technology.

Armament enhancement initiative

      The budget request included $40.3 million to develop 
future generation main battle tank armaments.
      The House bill would authorize an additional $20.0 
million for accelerated development of the tank extended range 
munition-kinetic energy (TERM-KE).
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a total of $38.3 million 
for the Armament Enhancement Initiative (PE 63639A). The 
conferees note an Army decision to terminate the Smart Target 
Activated Fire and Forget (STAFF) munition and pursue further 
development of the Tank Extended Range Munition-Kinetic Energy 
(TERM-KE). The conferees, therefore, agree to authorize a 
decrease of $17.0 million for STAFF and an increase of $15.0 
million for TERM-KE.

Aviation-advanced development

      The budget request included $7.1 million to develop 
aviation technologies.
      The House bill would authorize an additional $5.0 million 
for development of retinal display technologies.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $12.1 million in PE 
63801A.

All source analysis system

      The budget request included $24.0 million to continue 
development of the All Source Analysis System (ASAS).
      The House bill would authorize an increase of $3.5 
million for software upgrades.
      The Senate amendment would authorize an increase of $3.2 
million to expand advanced fusion technology efforts.
      The House recedes.

Light tactical wheeled vehicles

      The budget request included $9.9 million to develop light 
tactical wheeled vehicle technologies.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees agree to authorize a decrease of $9.9 
million in PE 64642A and direct the Army to report on future 
light tactical wheeled vehicle requirements. The conferees note 
the Army has failed to provide a clear and definitized plan 
that addresses future light tactical vehicle requirements and 
are unsure about the future direction of Army wheeled vehicle 
programs.

Engineer mobility equipment development program

      The budget request included $56.2 million to support 
improvements to engineer mobility equipment (PE 64649A).
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees agree to a total authorization of $52.2 
million in PE 64649A, a decrease of $4.0 million. The conferees 
note that the engineer mobility equipment development program 
has suffered from late obligation and system management 
problems.

Automatic test equipment

      The budget request included $2.6 million to develop 
automatic test equipment technologies.
      The House bill would authorize an increase of $2.3 
million for Integrated Family of Test Equipment (IFTE) 
technology development.
      The Senate amendment authorized the budget request.
      The Senate recedes.

Tactical exploitation of national capabilities

      The budget request included $107.2 million for the 
various Tactical Exploitation of National Capabilities (TENCAP) 
and related research and development projects within the 
military services' Tactical Intelligence and Related Activities 
aggregation and the Joint Military Intelligence Program.
      The House bill would authorize a decrease in these 
individual accounts by approximately 10 percent.
      The Senate amendment would authorize the budget request.
      The House recedes.
      The conferees agree that the tactical 
``operationalization'' of space has become relatively 
commonplace within military doctrine, planning, and execution, 
and that specialized TENCAP projects to inform, educate, and 
provide improved space-related capabilities should be reviewed 
for possible reduction or reorientation. While the conferees 
fully support the TENCAP program, they believe there may be a 
need to begin to reduce and phase out the specialized projects 
to exploit space and national capabilities. Such exploitation 
should be the focus of new programs from the outset of their 
development.
      Therefore, the conferees direct the Secretary of Defense 
to submit a report to the congressional defense and 
intelligence committees by March 15, 1998, describing the 
Secretary's assessment of the continuing utility of the TENCAP 
program, and recommendations for evolving or phasing out the 
existing TENCAP program.

Combined arms tactical trainer

      The budget request included $2.8 million to develop 
combined arms tactical trainer (CATT) technologies.
      The House bill would authorize the budget request.
      The Senate amendment would authorize the transfer of 
$11.5million from procurement to PE 64780A to resolve software 
problems associated with these trainers.
      The conferees agree to authorize $13.3 million in PE 
64780A.

Landmine warfare/barrier-engineering development

      The budget request included $22.6 million to develop 
minefield detection technologies.
      The House bill and the Senate amendment would authorize 
the budget request.
      The conferees agree to authorize a decrease of $13.9 
million in PE 64808A for development work associated with the 
airborne standoff minefield detection system (ASTAMIDS) as 
technical difficulties with this technology have been 
identified and the system is not ready to enter engineering and 
manufacturing development (EMD).

Sense and destroy armament missile-engineering development

      The budget request included $22.4 million to continue 
development of the sense and destroy armament missile (SADARM).
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees agree to authorize a decrease of $10.9 
million for the SADARM program. The conferees note the program 
has suffered from technical difficulties associated with 
development of the baseline munition. The conferees support the 
SADARM program but believe the baseline system testing 
scheduled for calendar year 1998 should be completed prior to 
funding preplanned product improvement work.

Fuel cells

      The budget request included no funding for fuel cell 
technology.
      The House bill would authorize an increase of $1.8 
million in PE 63712N to establish a cooperative research and 
development effort for a cost-shared demonstration of proton 
exchange membrane fuel cell technology and an increase of $3.5 
million in PE 63513N to continue the program for design of a 
full scale ships service molten carbonate fuel cell power plant 
and demonstration of a 500 kilowatt molten carbonate fuel cell.
      The Senate amendment would authorize an increase of $1.75 
million in PE 63712N to establish a cooperative research and 
development effort between the Naval Surface Warfare Center 
(NSWC) in Crane, Indiana and private industry. The Senate 
amendment also provided for an increase of $4.0 million in PE 
62784A for additional technology development of energy 
efficient military applications between the U.S. Army Corps of 
Engineers, Construction Engineering Research Laboratories and 
private industry. In each instance, the Senate amendment 
directed participants from the private sector to contribute an 
amount of funding that is equivalent to the Federal funding 
level.
      The conferees agree to authorize an increase of $1.75 
million in PE 63712N, as discussed in the House report (H. 
Rept. 105-132) and the Senate report (S. Rept. 105-29), an 
increase of $3.5 million in PE 63513N for continuation of 
molten carbonate fuel cell development, as discussed in the 
House report, and an increase of $4.0 million in PE 65856A for 
additional technology development of energy efficient military 
applications, as discussed in the Senate report.
      The conferees note that over the course of several budget 
cycles there have been numerous funding adds for development 
and utilization of fuel cell technology. The conferees believe 
that there is an absence of a clearly defined strategy and 
implementation program for the development and application of 
advanced fuel cell technology and other energy efficient 
applications for the Department of Defense (DOD). The conferees 
direct the Secretary of Defense to develop a strategy to 
address a broader spectrum of interests and applications of 
fuel cell technology within the military departments. The 
conferees expect that the strategy will include private sector 
contribution in an amount that is, at a minimum, equal to the 
Federal funding level for the continuation and development of 
fuel cell technology.
      The conferees are also aware that the Department of 
Energy (DOE) has been involved in the development and 
application of advanced fuel cell technology. The conferees 
direct the Secretary of Defense to work with the Secretary of 
Energy in the development of a common strategy to avoid 
duplication of effort between the two departments.
      The conferees direct the Secretary of Defense to report 
to the congressional defense committees by March 31, 1998 on 
the overall science and technology strategy for the development 
and application of advanced fuel cell technology and other 
energy efficient applications by the defense agencies and 
military departments. Moreover, the report should explain the 
common strategy developed by the Secretaries of Defense and 
Energy in this area.

Combat vehicle improvement program

      The budget request included $136.5 million to develop 
combat vehicle improvements to existing systems.
      The House bill would authorize an increase of $20.1 
million for combat vehicle improvement purposes.
      The Senate amendment would authorize an increase of $20.0 
million for combat vehicle improvement purposes.
      The conferees agree to authorize an increase of $22.5 
million in PE 23735A for a total of $159.0 million. Of this 
amount, $12.0 million is for development of field emission 
display units for armored vehicles; $4.0 million is for 
development of AN/VVR-1 Laser Warning Receivers; and $6.5 
million is for the M1 system enhancement program (SEP).

Aircraft modification/product improvement program

      The budget request included $2.6 million to support 
improvements to existing aircraft systems.
      The House bill would authorize an increase of $20.0 
million for the improved cargo helicopter (ICH) program.
      The Senate amendment would authorize an increase of $30.0 
millionfor ICH.
      The conferees agree to authorize an increase of $20.0 
million for ICH in PE 23744 for a total of $22.6 million.

Digitization

      The budget request included $157.0 million to support 
Army digitization efforts.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $11.0 
million for outstanding digitization requirements.
      The conferees note concerns expressed by defense 
appropriations subcommittees regarding the funding of certain 
Army digitization activities in the Digitization program 
element (PE 23758A) of the Army Research and Development budget 
request.
      The conferees agree to reallocate $100.0 million from the 
Army request for digitization funding as follows:

Research, Development, Test and Evaluation, Army

                                                             In millions
Digitization:
    Applique......................................................  $2.6
    Tactical Internet.............................................   6.0
Other:
    Force XXI Initiatives.........................................  38.9
    Striker.......................................................   3.9
    Mortar Fire Control...........................................  10.0
    Radio Frequency Technology....................................   1.7
    Light Weight Laser Designator.................................   2.8
    Combat Synthetic Training Assessment Range....................   5.4
    Airborne Command & Control System.............................  11.0
Missile Procurement, Army:
    Avenger Slew-to-Cue...........................................   7.4
Other Procurement, Army:
    Gun Laying Positioning System.................................   6.0
    PLS Enhanced..................................................   3.0
    Radio Frequency Technology....................................   1.2

      The conferees encourage the Army to further develop a 
clear and comprehensive digitization program that depicts 
requirements, funding, and timelines associated with the 
ultimate goal of fielding a digitized Corps early in the next 
century and to consult with the congressional defense 
committees concerning that program. The conferees expect that 
this effort will be fully funded in future budget submissions 
and that congressional defense committees will be notified of 
proposed acquisitions and activities. The conferees agree to 
authorize $65.6 million for digitization in PE 23758A.

Missile/air defense product improvement program

      The budget request included $17.4 million to support 
improvements to existing air defense systems.
      The House bill would authorize an increase of $16.7 
million, $10.0 million for Patriot PAC-3 development and $6.7 
million for the Stinger Block II development effort.
      The Senate amendment would authorize an increase of $10.0 
million for Patriot anti-cruise missile (PACM) development.
      The conferees agree to authorize $31.4 million, an 
increase of $14.0 million in PE 23801A, $10.0 million for the 
completion of the PACM development effort and $4.0 million for 
the Stinger Block II program.

Healthcare information protection demonstration

      The budget request included $9.6 million in PE 33140A for 
the Army's information systems security program.
      The House bill would authorize an increase of $2.5 
million to initiate a demonstration program for military 
healthcare information protection that would be consistent with 
national healthcare and information initiatives, and would 
direct the Secretary of the Army to report to the congressional 
defense committees on related matters.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

End item industrial preparedness activities

      The budget request included $44.3 in PE 78045A for the 
Army's manufacturing technology program.
      The House bill would authorize an increase of $15.0 
million for munitions manufacturing technology.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $15.0 
million in PE 78045A to accelerate key munitions manufacturing 
technologies in composites, electronics, energetics, power 
supplies, and metal parts, as recommended in the House report 
(H. Rept. 105-132). The conferees intend this funding to be 
used to reduce the cost of future munitions and to enable both 
government- and contractor-owned munitions production 
facilities to produce research quantities and production 
quantities of munitions concurrently; to adopt design changes 
and product improvements more rapidly; and to make short 
production runs more feasible and less costly.

Overview

      The budget request for fiscal year 1998 contained an 
authorization of $7,611.0 million for Navy, Research and 
Development in the Department of Defense. The House bill would 
authorize $7,947.0 million. The Senate amendment would 
authorize $7,813.0 million. The conferees recommended an 
authorization of $7,774.9 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Defense research sciences
      The budget request included $366.3 million in PE 61153N 
for Navy defense research sciences.
      The House bill would authorize an increase of $10.0 
million to continue the program of basic research in molecular 
design materials science that was initiated in 1994.
      The Senate amendment would authorize the budget request.
      The conferees agree to an increase of $8.0 million in PE 
61153N. Further, the conferees agree with the direction 
contained in the House report (H. Rept. 105-132) with regard to 
the molecular design materials science program. The Secretary 
of the Navy shall conduct an assessment of the goals, 
objectives, and progress in the program, future directions and 
funding requirements, and report the results of the assessment 
to the congressional defense committees by March 15, 1998.
Marine mammal research program
      The budget request included $366.3 million in PE 61153N 
for Navy Defense Research Sciences, including $137.1 million to 
support basic research in ocean sciences.
      The House bill would authorize an increase of $500,000 to 
continue the Navy's cooperative marine mammal research program.
      The Senate amendment would authorize the budget request.
      The House recedes.
      The conferees direct the Secretary of the Navy to submit 
to the congressional defense committees, by March 1, 1998, a 
report on the research being conducted in the marine mammal 
research program, the technological implications of this 
research to Navy sonar requirements, and future plans for the 
program.
Power electronic building blocks
      The budget request included $46.9 million in PE 62121N 
for applied research in surface ship technology.
      The House bill and the Senate amendment would authorize 
an increase of $6.0 million for power electronic building block 
(PEBB) technology.
      The conferees agree to an increase of $6.0 million in PE 
62121N for the acceleration of the PEBB program to provide 
electric power system options for future shipboard designs that 
include electric drive and for meeting reduced manning goals 
through automation of ship systems. The conferees urge the use 
of virtual prototyping for simulation and evaluation of 
advanced concept electrical systems in this effort.
Power node control centers
      The budget request included $46.8 million in PE 62121N 
for applied research in surface ship and submarine, hull, 
mechanical, and electronic technology, logistics technology, 
and environmental protection for all Navy platforms and shore 
facilities.
      The House bill would authorize an increase of $1.5 
million in PE 62121N to continue the development of power node 
control centers for advanced integrated electrical distribution 
system fault detection, switching, reconfiguration, and control 
of shipboard electrical systems.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Second source for carbon fibers
      The budget request included $76.7 million in PE 62234N 
for materials, electronics, and computer technologies.
      The House bill and the Senate amendment would authorize 
an increase of $2.0 million in PE 62234N to complete the 
qualification of new processes for aviation platforms and the 
development of a second source for carbon fibers.
      The conferees agree to authorize an increase of $2.0 
million in PE 62334N to continue and complete the program 
initiated in fiscal year 1997 to address new materials 
processes such as resin transfer molding and to establish 
second source qualification procedures for advanced composites 
used in naval aircraft and prepreg systems.
Titanium processing technology
      The budget request included $76.7 million in PE 62234N 
for materials, electronics, and computer technologies.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $2.0 
million in PE 62234N to support the development of the plasma 
quench process for use in the production of ultra-fine titanium 
powder and in the injection molding process.
      The House recedes.
      The conferees direct that all applicable competitive 
procedures be used in the award of contracts or other 
agreements under this program, and that cost sharing 
requirements for non-federal participants be utilized where 
appropriate.
Arctic climate observations
      The budget request included $48.2 million in PE 62435N 
for applied research in oceanographic and atmospheric 
technologies. The request included no funds for continuation of 
the ocean climate research program.
      The House bill would authorize an increase of $3.0 
million in PE 62435N to support the second year of the arctic 
oceanographic observation program, a four-year, cooperative 
program for the utilization of underwater acoustic techniques 
to determine ocean climate and acoustic characteristics in a 
large ocean basin.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $2.0 
million to continue the program for investigation of the use of 
long-range underwater sound transmissions to detect and monitor 
changes in the ocean, as described in the House report (H. 
Rept. 105-132).
National Oceanographic Partnership Program
      The budget request included $48.2 million in PE 62435N 
for applied research in oceanographic and atmospheric 
technology.
      The House bill and Senate amendment would authorize an 
increase of $16.0 million in PE 62435N for the National 
Oceanographic Partnership Program (NOPP).
      The conferees agree to an increase of $12.0 million in PE 
62435N to maintain the momentum of the program until additional 
funds for support of the program can be included in the budget 
requests of other participating agencies and departments.
       The conferees further direct the Secretary of Defense to 
coordinate with the Secretaries of Commerce, Energy, and 
Interior, the Director of the National Science Foundation, the 
Administrators of the National Aeronautics and Space 
Administration and the Environmental Protection Agency on 
funding levels required in future budget requests for 
continuation of the NOPP. The conferees direct the Secretary of 
Defense to provide a report to the congressional defense 
committees by February 28, 1998 on the funding for the program 
identified in the fiscal year 1998 budget requests of 
participating agencies and the Department of Defense.
Antisubmarine warfare technology
      The budget request included $35.7 million in PE 62633N 
for undersea warfare weaponry technology.
      The House bill would authorize an increase of $4.0 
million in PE 63747N to mature the development of hydrodynamics 
and propulsion technologies for the 6.25,, torpedo vehicle and 
expand guidance and control technologies.
      The Senate amendment would authorize an increase of $4.0 
million in PE 62633N to accelerate technology leading to the 
development of a quick reaction antisubmarine/anti-torpedo 
weapon needed for close-range engagements and for the 
protection of surface ships and submarines from torpedo attack.
      The conferees agree to authorize an increase of $3.0 
million in PE 62633N for antisubmarine warfare technologies 
applicable to quick reaction antisubmarine systems, as 
recommended in the House report (H. Rept. 105-132) and the 
Senate report (S. Rept. 105-29). The additional funding should 
be used to mature hydrodynamics, propulsion, and guidance and 
control technologies for the 6.25,, torpedo vehicle to 
accelerate its development and introduction into the fleet.
Composite helicopter hangar
      The budget request included no funds for composite 
helicopter hangars.
      The House bill authorized the budget request.
      The Senate amendment would authorize an increase of $10.0 
million above the budget request in PE 63508N to begin a 
developmental effort to design and fabricate the outer shell of 
a DDG-51 helicopter hangar structure using composite materials.
      The conferees agree to authorize an increase of $10.0 
million in PE 63508N for development of a composite helicopter 
hangar development and a general reduction of $5.0 million to 
PE 63508N.
Project ``M''
      The budget request included $39.7 million in PE 63508N 
for technologies for submarine and surface ship handling, 
machinery, and engineering systems.
      The House bill authorized an increase of $5.0 million to 
continue the Navy's program for transition, development and 
demonstration of advanced quieting technology developed under 
the Defense Advanced Research Project Agency Project ``M''.
      The Senate amendment authorized the budget request.
      The conferees agree to authorize a $5.0 million increase 
for Project ``M''.
Marine Corps advanced technology demonstration
      The budget request included $34.2 million to support the 
Marine Corps advanced technology demonstration (ATD).
      The House bill would authorize an increase of $19.8 
million to support the Commandant's Warfighting Laboratory. The 
House bill would also provide $5.0 million for a low-cost, 
close-range unmanned aerial vehicle (UAV) project.
      The Senate amendment would authorize an increase of $15.0 
million for the Commandant's Warfighting Laboratory.
      The conferees agree to authorize an increase of $19.5 
million in PE 63640M. Of this amount, $17.5 million is for the 
Commandant's Warfighting Laboratory and $2.0 million is for the 
common automatic recovery system for a total of $53.7 million 
in this program element.
Freeze-dried blood research project
      The budget request included $18.3 million in PE 63706N 
for medical development programs.
      The House bill and Senate amendment would authorize an 
increase of $2.5 million for the freeze-dried blood research 
project.
      The conferees agree to authorize an increase of $1.5 
million in PE 63706N to continue research on freeze-dried blood 
processes to develop a safe and reliable supply of blood for 
combat casualties. The conferees recognize the commercial 
potential of this technology and urge the Navy to pursue dual-
use application and cost-sharing in this program to the maximum 
extent practicable.
Littoral antisubmarine warfare technology demonstration
      The budget request included $54.8 million in PE 63747N 
for advanced development of undersea warfare advanced 
technology, including $30.9 million for shallow water 
surveillance advanced technology.
      The House bill would authorize an increase of $5.0 
million in PE 63747N for continued development, demonstration, 
and evaluation of the technology for a mobile, high power 
broadband acoustic surveillance source that is based upon the 
adaptation of commercial-off-the-shelf (COTS) air-gun 
technology that was developed originally for the oil 
exploration industry.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million for the continuation of the COTS air-gun technology 
demonstration and evaluation program and understand that this 
will lead to a decision by the Navy on whether to proceed with 
the development of COTS air-gun technology as an acoustic 
surveillance source.
Beach and surf zone obstacle clearance
      The budget request included $41.6 million in PE 63782N 
for advanced development and demonstration of technology for 
shallow water mine counter-measures.
      The House bill would authorize an increase of $750,000 to 
complete the additional testing required for determination of 
the GPU-5 gunpod's capability to breach beach and surf zone 
obstacles safely, quickly, and decisively when mounted on an 
air-cushion landing craft.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
High frequency surface wave radar
      The budget request included $87.2 million in PE 63792N 
for the advanced technology transition program.
      The House bill and Senate amendment would authorize an 
increase of $4.0 million for high frequency surface wave radar 
(HFSWR) advanced technology demonstration.
      The conferees agree to an increase of $4.0 million in PE 
63792N to complete the HFSWR demonstration.
Visualization architecture and technology
      The budget request included $7.8 million for advanced 
technology in aviation survivability (PE 63216N) and $33.2 
million for major test and evaluation investments (PE 64759N).
      The House bill would authorize an increase of $3.0 
million in PE 64759N for visualization architecture and 
technology that would focus on development of data display 
technologies, enhanced situational awareness, and other 
capabilities required to enhance the ability of developmental 
and operational testers to assess complex, dynamic air combat 
testing and operations.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million in PE 63216N for visualization architecture and 
technology. The conferees direct that all applicable 
competitive procedures be used in the award of contracts or 
other agreements under this program, and that cost-sharing 
requirements for non-federal participants be utilized, where 
appropriate.
Antisubmarine warfare systems development
      The budget request included $22.9 million in PE 63254N 
for development of antisubmarine warfare systems.
      The House bill would authorize an increase of $3.8 
million to complete demonstration/validation of sonobuoy geo-
positioning system integration and transducer enhancements for 
improving the shallow water antisubmarine warfare effectiveness 
of the air deployed low frequency projector.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a $2.0 million increase 
in PE 63254N for improving the shallow water antisubmarine 
warfare effectiveness of the air deployed low frequency 
projector.
CV(X) carrier system development
      The budget request included $98.6 million in PE 63512N 
for future aircraft carrier research and development.
      The House bill would authorize a decrease of $88.4 
million for CV(X) carrier system development. The House report 
(H. Rept. 105-132) expressed the belief that it would be 
neither fiscally nor technically prudent to increase advanced 
carrier systems research and development for the CV(X) to the 
degree sought by the Navy. The report also expressed the belief 
that increased emphasis should be placed on the research and 
development program for the CVN-77 to provide a transition to 
the CV(X).
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $20.6 million in PE 
63512N, a reduction of $78.0 million for future aircraft 
carrier research and development.
      The conferees encourage the Chief of Naval Operations to 
define the operational requirement for the CV(X) aircraft 
carrier program and develop a road map for the CV(X) research, 
development, test and evaluation program to ensure the 
capabilities of the CV(X) meet that requirement.
Advanced submarine systems development
      The budget request included $59.1 million in PE 63561N 
for innovative research and development in submarine 
technologies and their subsequent evaluation, demonstration, 
and validation forsubmarine platforms, in order to increase the 
submarine technology base and provide subsystem design options that are 
not currently feasible.
      The House bill would authorize an increase of $103.0 
million for development (in parallel with development of the 
New Attack Submarine (NAS)) of a large-scale vehicle (LSV) 
demonstrator that would not be limited by form (hull or 
appendages) or by a single hull design, and would also direct 
the Secretary of the Navy to issue a competitive solicitation 
for the demonstrator to the shipyards not currently involved in 
the design or future construction of the NAS. The House bill 
would further direct the transfer to the submarine large scale 
demonstrator of funds in the Future Years Defense Program 
accompanying the fiscal year 1998 budget for the Arsenal Ship 
demonstrator.
      The Senate amendment would authorize an increase of $15.0 
million to accelerate the development of what are now 
considered far-term technologies, such as an advanced 
propulsor, rim driven motors, and advanced hull forms.
      The conferees agree to authorize an increase of $54.9 
million. The Secretary of the Navy is authorized to pursue a 
third demonstrator that is not limited by form or single hull 
design and issue a competitive solicitation to all responsible 
sources for such a demonstrator. To avoid costly oversights and 
conflicts between the LSV builder and the technology providers, 
the Secretary of the Navy should ensure that the NAS 
shipbuilders are participants, as appropriate, in the process 
of including new technologies into the LSV.
      The Secretary of the Navy should provide the 
congressional defense committees not later than the time at 
which the fiscal year 1999 defense budget request is submitted 
a report detailing the Navy's plans for LSV development.
Cruiser conversion program design
      The budget request included $38.6 million for ship 
preliminary design and feasibility studies in PE 63564N.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a $25.0 million 
increase in PE 64567N to initiate planning for mid-life 
conversion of Aegis cruisers and reduce schedule risk on 
development of DD-21.
      The conferees agree to authorize a $15.0 million increase 
in PE 63564N to initiate the cruiser conversion program. The 
conferees direct the Secretary of the Navy to provide a report 
on the cruiser conversion plan to the congressional defense 
committees with the submission of the fiscal year 1999 defense 
budget request.
Intercooled recuperated gas turbine engine
      The budget request included $49.7 million in PE 63573N 
for the Navy's advanced surface machinery program, including 
$32.3 million to continue development of the intercooled 
recuperated (ICR) gas turbine engine.
      The House bill would authorize the budget request. The 
House report (H. Rept. 105-132) would direct the Secretary of 
the Navy to report an assessment of the progress in the ICR 
engine program.
      The Senate amendment would also authorize the budget 
request. The Senate report (S. Rept. 105-29) would direct the 
Secretary of the Navy to prepare and submit a plan that makes 
provisions for at-sea testing, completion of development, and 
introduction of the ICR engine into the fleet.
      The conferees agree to authorize a reduction to the 
budget request for the ICR program of $2.0 million, without 
prejudice. The conferees direct the Secretary of the Navy to 
conduct an assessment of the progress in the ICR engine program 
and plans for its continuation. The assessment shall address 
the technical progress in the program, future plans for engine 
testing and qualification (including plans for testing at land-
based test sites and at-sea), options for completion of 
development and introduction of the ICR engine into the fleet 
if testing proves successful, the status of agreements with the 
United Kingdom and participating countries regarding the 
conduct of, and funding for, continuation of the program, and 
budget estimates of the costs necessary to complete the 
program. The results of the assessment shall be reported to the 
congressional defense committees with the submission of the 
fiscal year 1999 defense budget request.
Automatic target recognition/optical correlation
      The budget request included $34.2 million in PE 63609N 
for Navy conventional munitions development, $26.2 million in 
PE 63601F for Air Force conventional weapons technology, and 
$4.8 million in PE 63232D for automatic target recognition.
      The House bill would authorize an increase of $8.0 
million in PE 63609N for development and demonstration of a 
miniature optical correlator for automatic target recognition 
and improved aimpoint selection for the Standard Missile, and 
an increase of $3.5 million in PE 63601F for the development 
and demonstration of a miniature optical correlator for 
automatic target recognition and aimpoint selection for the 
AGM-130 missile.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $4.2 
million in PE 63609N and an increase of $1.5 million in PE 
63601F for the development and demonstration of optical 
correlation technology, as described in the House report (H. 
Rept. 105-132). The increase in PE 63601F is offset by a 
reduction of $3.0 million for next generation air-to-air 
threats.
Marine Corps assault vehicles
      The budget request included $60.1 million to support the 
development of the advanced amphibious assault vehicle (AAAV).
      The House bill would authorize an increase of $10.0 
million to meet additional development requirements.
      The Senate amendment would authorize an increase of $10.1 
million for the AAAV.
      The conferees agree to authorize an increase of $8.0 
million for a total of $68.1 million in PE 63611M.
Marine Corps ground combat/support systems
      The budget request included $36.5 million to support 
development of Marine Corps ground combat systems.
      The House bill would authorize an increase of $3.6 
million to support development requirements for the lightweight 
155mm howitzer.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Cooperative engagement capability
      The budget request included $139.2 million in PE 63658N 
for the cooperative engagement capability (CEC).
      The House bill would authorize a total increase of $50.0 
million in PE 63658N for the CEC program: $15.0 million to 
continue the accelerated development of the low cost common 
equipment set; $5.0 million to support transfer of the CEC 
design and development agent to industry; $20.0 million to 
accelerate integration of the CEC into Navy E-2C and P-3 
aircraft; $5.0 million to initiate development of an integrated 
capability between CEC and the ship self defense program 
(SSDS); and $5.0 million to accelerate joint service 
integration and demonstration of CEC with the Army's Patriot 
and the Marine Corps' Hawk air defense missile systems.
      The Senate amendment would authorize an increase of $9.5 
million in PE 63658N to:
      (1) $5.0 million to continue the transition of design 
responsibility from its developer to the CEC procurement 
contractor; and
      (2) $4.5 million to continue integration of CEC into the 
Marine Corps Hawk missile system.
      The Senate amendment would also authorize $5.0 million in 
PE 64212N to initiate development of a Ku-band data link kit 
for the SH-60B helicopter to avoid CEC interference.
      The conferees agree to authorize an increase of $33.0 
million in PE 63658N as follows:
      (1) $15.0 million for low cost common equipment sets;
      (2) $10.0 million for P-3 and E-2C integration;
      (3) $5.0 million for CEC-SSDS integration; and
      (4) $3.0 million for CEC-Hawk missile system integration.
      The conferees agree not to authorize an increase in PE 
64212N for the SH-60B Ku-band data link.
Composite engineered materials
      The budget request included $1.7 million in PE 63725N for 
advanced development of materials, electronics and computer 
technologies.
      The House bill would authorize an increase of $3.0 
million to complete the shore facilities materials program in 
cost-shared research on carbon fiber-reinforced, recycled 
thermoplastic engineered lumber.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million to complete the shore facilities materials program in 
cost-shared research on carbon fiber-reinforced, recycled 
thermoplastic engineered lumber.
Land attack systems technology
      The budget request included $37.8 million in PE 63795N 
for development, demonstration, and validation of land attack 
systems technology for naval ship-to-shore fire support.
      The House bill would authorize the following increases:
            (1) $15.1 million to complete the development and 
        commence the integration of a fire control system to 
        support the initial operational capability of the 
        advanced 5"/62 caliber gun and the extended range 
        guided munition;
            (2) $10.0 million for flight test demonstration and 
        risk reduction for the land attack Standard missile;
            (3) $20.0 million for program definition and risk 
        reduction activities to permit the Navy tactical 
        missile system (NTACMS) to begin accelerated 
        engineering and manufacturing development in fiscal 
        year 1999; and
            (4) $5.0 million to continue the micro-
        electromechanical systems (MEMS) technology guidance 
        and control risk reduction program.
      The Senate amendment would authorize the following 
increases:
            (1) $15.1 million for the continued development of 
        the naval surface fire support warfare control system 
        (NWCS);
            (2) $5.0 million to pursue a flight demonstration 
        program for the land attack Standard missile; and
            (3) $20.0 million for developing NTACMS.
      The conferees agree to authorize the following increases 
to PE 63795N:
            (1) $8.0 million to complete the extended range 
        guided munition development and commence the 
        integration of a fire control system;
            (2) $3.0 million to pursue a flight demonstration 
        program for the land attack Standard missile;
            (3) $10.0 million for developing NTACMS; and
            (4) $2.0 million for MEMS.
      The conferees are concerned that the Navy is pushing 
systems to flight test to meet surface fire support 
requirements without an initial analysis of whether the systems 
are capable of meeting Navalsurface fire support requirements. 
In addition, a number of mature systems, sub-systems and components 
appear to be capable of fulfilling surface fire support requirements 
without further development. However, without the basic analysis which 
would allow the Navy to narrow the field of candidates intelligently, 
too many systems are moving toward fulfilling the same requirement and 
too many opportunities to take advantage of developed systems are being 
missed. To correct these deficiencies, the conferees strongly encourage 
the Navy to conduct the basic analysis necessary to move forward with a 
focused effort to meet the surface fire support requirement. To 
accomplish this, the conferees suggest the Navy evaluate the concept of 
a virtual land attack warfare development center that would 
electronically link existing expertise while avoiding expensive travel 
costs. The Navy should consider using funding from prime systems for 
meeting the surface fire support analytical requirement, including 
Standard missile, Navy tactical missile system, and Tomahawk. The 
conferees believe the Navy needs to conduct this analysis to eliminate 
redundancy and take advantage of mature technologies to make progress 
in meeting naval surface fire support requirements.
Nonlethal weapons and technologies of mass protection program
      The budget request included $16.8 million for the 
nonlethal weapons (NLW) and technologies program.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $3.3 
million to address underfunding by the Department of Defense in 
support of nonlethal weapons technologies research and 
development program.
      The Senate recedes.
      The Senate report (S. Rpt. 105-29) expressed the view 
that the Department of Defense should continue to focus its 
efforts on developing weapons and technologies to assist U.S. 
military forces, who are increasingly involved in non-
traditional military situations, with the necessary tools and 
flexibility to manage, shape, deter, or contain future 
conflicts across the operational spectrum. The conferees note 
the recent decision by the Department of Defense to ship 
nonlethal weapons and technologies to U.S. ground forces 
participating in the North Atlantic Treaty Organization (NATO) 
Stabilization Force (SFOR) during the recent violent 
confrontations between American forces and Bosnian Serb 
demonstrators.
      The conferees commend the military services for their 
efforts in the NLW area and encourage the Department of Defense 
(DOD) to increase its investments in the research, development, 
and procurement of nonlethal weapons and technologies, as well 
as associated doctrinal and training initiatives. Further, the 
conferees expect the DOD to provide the funds necessary to 
fulfill the requirements for nonlethal weapons and technologies 
identified by the military services, rather than requiring the 
military services to fund NLW programs out of their existing 
budgets.
CH-60 helicopter development
      The budget request included $31.8 million for CH-60 
helicopter advance procurement.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees agree to authorize a transfer of $31.8 
million from Aircraft Procurement, Navy to PE 64212N to enable 
the Navy to conduct non-recurring engineering efforts, 
including drawings for engineering development.
Parametric airborne dipping sonar
      The budget request included no funds for the parametric 
airborne dipping sonar (PADS).
      The Senate amendment would authorize an increase of $10.0 
million in PE 64212N for the continued development of PADS.
      The House bill authorized the budget request.
      The conferees agree to authorize an increase of $5.0 
million increase for PADS in PE 64212N.
P-3 maritime patrol aircraft modernization program
      The budget request included $3.2 million in PE 64221N to 
continue engineering and manufacturing development of upgrades 
to the P-3C aircraft system to enhance surface and surface 
tracking, classification, and attack capabilities.
      The House bill would authorize an increase of $12.0 
million to continue and accelerate the integration of anti-
surface warfare improvement program (AIP) sensors to reduce 
operator workload, modernize the operator-machine interface to 
take advantage of new displays and controls, provide additional 
sensor integration/enhancements, improve/automate tactical 
planning aids, and provide for multi-sensor data correlation 
and fusion.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $10.0 
million in PE 64221N for the P-3C maritime patrol aircraft 
modernization program as recommended in the House report (H. 
Rept. 105-132).
      The conferees note the continuing disparity between the 
operational requirements of the unified commanders-in-chief 
(CINCs) and the Navy's plans for modernization of the P-3C 
fleet. The conferees direct the Secretary of the Navy to 
provide an assessment of the implications of this disparity to 
the congressional defense committees with the submission of the 
fiscal year 1999 defense budget request.
H-1 upgrades
      The budget request included $80.7 million to support H-1 
upgrades.
      The House bill and Senate amendment would authorize a 
transfer of $5.6 million from the H-1 program in Navy 
procurement to support efforts to provide for a common cockpit 
in PE 64245N.
      The conferees agree to authorize the transfer of $5.6 
millionfrom the H-1 upgrade program to PE 64245N for a total of 
$86.3 million in that program element. The conferees agree to authorize 
a total of $12.9 million for H-1 modifications.
Advanced ranging source
      The budget request included $16.9 million in PE 64261N 
for engineering and manufacturing development of acoustic 
search sensors.
      The House bill would authorize an increase of $4.0 
million to accelerate the development of alternative shallow 
water-capable sound sources in the advanced extended echo 
ranging (AEER) program and ensure that unique acoustic 
technology is available for the advanced ranging source (ARS) 
and air deployed low frequency project (ADLFP) comparative 
program testing.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $2.0 
million for the purposes identified in the House report (H. 
Rept. 105-132).
High Power Discriminator
      The budget request included no funds in PE 64307N to 
begin development of a High Power Discriminator (HPD).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $35.0 
million for the HPD Program.
      The conferees agree to authorize an increase of $25.0 
million for the HPD Program in PE 64307N.
      The conferees support the concept of using existing X-
Band radar technology in support of the Navy's theater 
ballistic missile defense effort. The proposed HPD would 
consist of a solid state X-Band radar for long-range 
acquisition and discrimination for theater ballistic missile 
defense and cruise missile defense. This concept would leverage 
the significant investment already made in the Army's ground-
based radar.
Maritime fire support demonstrator/arsenal ship
      The budget request included $102.9 million in PE 64310N 
for the Navy and $47.2 million in PE 63763E for the Defense 
Advanced Research Projects Agency (DARPA) to continue 
development of the arsenal ship demonstrator. The budget 
request also included $55.0 million in PE 64567N for the Navy's 
next generation surface combatant, SC-21.
      The House bill would authorize no funding for the arsenal 
ship program. It would direct the Under Secretary of Defense 
(Acquisition and Technology) and the Secretary of the Navy to 
review the acquisition strategy for the SC-21 program and 
determine whether or not a prototyping strategy is appropriate 
for the new surface combatant.
      The Senate amendment would authorize an increase of $25.0 
million in PE 64310N to ensure that sufficiently robust funding 
is available early in Phase III, the construction phase for the 
arsenal ship (now redesignated the maritime fire support 
demonstrator (MFSD)), for schedule risk reduction and to 
promote the introduction of new technologies into the 
demonstrator.
      The conferees agree to authorize $35.0 million in PE 
64310N and no funding in PE 63673E to continue the MFSD 
program, a total reduction of $105.2 million. The reduction 
reflects the concerns stated in the fiscal year 1997 and the 
fiscal year 1998 reports by the congressional defense 
committees and in the statement of managers which accompanied 
the conference report on H.R. 3230 (H. Rept. 104-724).
      As noted in the House report (H. Rept. 105-132), the 
Navy's original concept for the arsenal ship was for the 
development and demonstration of a ``proof-of-principle strike 
warfare ship'' that would establish a new paradigm for the 
development and construction of Navy ships. A stealthy, highly 
survivable, heavily armed, and minimum manpower fire support 
ship, the arsenal ship demonstrator would be the prototype of a 
force of up to six such ships, each armed with as many as 500 
vertical launch cells.
      The Senate report (S. Rept. 105-29) noted that the Navy's 
concept for execution of the land attack mission has evolved 
from delivery of massive firepower from a limited number of 
single-mission hulls to delivery of fires by a closely 
interconnected, distributed network of multi-mission surface 
combatants. This evolution is reflected in the preferred option 
identified in the SC-21 cost and operational effectiveness 
analysis: a multi-mission destroyer optimized for land attack, 
the DD-21. The Navy has stated that the MFSD lies on the 
critical path to successful development of a DD-21 design in 
time to begin lead ship construction in fiscal year 2004. The 
Navy believes that all the technologies identified in the 
arsenal ship concept development phase will be relevant to the 
DD-21, and that the MFSD will also serve as a test-bed for 
emerging technologies following completion of the initial 
demonstration with the fleet in 2001. The conferees are deeply 
concerned that, although the stated purpose of the original 
arsenal ship demonstrator program changed significantly with 
the Navy's announcement of the new MFSD strategy in April 1997, 
the DARPA and the Navy continue to pursue the MFSD program 
without any apparent near-term change in the original program 
direction and without addressing the issues that have been 
previously raised by the congressional defense committees. The 
conferees understand that the program now under contract 
continues to focus on the development and demonstration of the 
arsenal ship concept, not on the maritime fire support 
demonstrator and its relationship to DD-21.
      The conferees note the views expressed in the House 
report that the differences in ship size and mission capability 
between the Arsenal Ship and DD-21, as conceived, could yield 
two separate development programs and that the overlapping 
schedules for the demonstrator and the DD-21 program do not 
provide sufficient opportunity for the experience gained from 
the demonstrator to provide maximum benefit to design and 
construction of the DD-21.
      The conferees believe that, if the MFSD program is to be 
relevant, the program must focus on the development and 
demonstration of new processes and procedures for the 
development and constructionof Navy ships, and on the 
development and demonstration of technologies that might be used in the 
DD-21 or in other future Navy ship construction programs. The 
demonstrator program must be structured to achieve these ends and the 
development and demonstration of the technologies to be evaluated on 
the demonstrator must be explicitly defined, programmed, and funded. 
The conferees do not believe that the MFSD, as a demonstrator and test 
bed, should be funded in a program element for engineering and 
manufacturing development.
      Therefore, the conferees direct the Secretary of Defense 
to prepare and submit to the congressional defense committees a 
plan for the development, demonstration, and evaluation of the 
MFSD and for development, demonstration, and evaluation of the 
various technologies that will be demonstrated and evaluated on 
the demonstrator. The technologies should include those being 
considered for incorporation in the detailed design of the DD-
21, for subsequent technology insertion into the DD-21 program, 
or for use in other future naval ship construction programs. 
The plan shall include the management structure, program plan, 
schedule, and funding required for development of the MFSD and 
for development, demonstration and evaluation of each of the 
technologies under consideration. The conferees further direct 
that of the funds authorized to be appropriated for the MFSD 
program in fiscal year 1998, not more than 50 percent may be 
obligated until the plan is provided to the Congress.
      The conferees also direct that any program to convert the 
MFSD to an operational surface combatant will require 
completion of a Milestone II/IV review and decision by the 
Secretary of Defense that formally addresses the same issues 
regarding the requirement and program for the MFSD that have 
been previously raised by the congressional defense committees 
with regard to the arsenal ship.
Multi-purpose processor
      The budget request included $42.3 million in PE 64503N 
for SSN-688 and TRIDENT modernization, including $33.5 million 
for submarine sonar improvement. However, the budget request 
included no funds for the multi-purpose processor (MPP).
      The House bill would authorize an increase of $15.0 
million for advanced development and rapid introduction of the 
MPP into the U.S. submarine fleet.
      The Senate amendment would authorize an increase of $25.0 
million above the budget request in PE 64503N to be used as an 
SBIR follow-on for advanced development of MPP transportable 
software technology, technology insertion, advanced processor 
software builds, and for providing MPP units and training 
throughout the fleet and the Navy research and development 
community.
      The conferees agree to authorize an increase of $15.0 
million for the SBIR follow-on for advanced development of MPP 
transportable software technology, technology insertion, 
advanced processor software builds, and for providing MPP units 
and training.
Advanced submarine tactical electronic combat system
      The budget request included $311.1 million in PE 64558N 
to continue engineering and manufacturing development for the 
New Attack Submarine (NSSN), including $95.8 million for NSSN 
combat system development.
      The House bill would authorize an increase of $17.0 
million in PE 64558N to restore the deferred elements of the 
advanced submarine tactical electronic combat system (ASTECS) 
and the integrated electronic support measures mast (IEM), 
ASTECS/IEM program.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $8.0 
million in PE 64558N to restore the deferred elements of the 
ASTECS/IEM program.
CVN-77 research and development
      The budget request included $17.9 million in PE 64567N 
for aircraft carrier contract design for the CVN-77.
      The House bill would authorize an increase of $17.0 
million to accelerate the evaluation of maturing advanced 
technologies for potential incorporation into the design of the 
CVN-77.
      The Senate amendment would authorize an increase of $17.0 
million in PE 63564N.
      The conferees agree to authorize an increase of $17.0 
million in PE 64567N to be used only for CVN-77 research, 
development, test and evaluation to accelerate the evaluation 
of maturing advanced technologies for potential incorporation 
into the design of CVN-77.
Ship self-defense system
      The budget request included $132.3 million in PE 64755N 
for the Navy's ship self defense program including $8.2 million 
for continued development of the NULKA active countermeasures 
decoy.
      The House bill would authorize an increase of $8.6 
million to activate the integrated ship self-defense test site 
at Wallops Island, and would direct the Secretary of the Navy 
to provide $6.0 million from available funds to refurbish and 
install an AN/SPS-48E air search radar at the test site. The 
House bill would direct the Secretary of the Navy to reassess 
the requirement for close-in defense of Navy surface ships and 
report the results of the assessment and the plan for meeting 
the requirement to the congressional defense committees by 
February 28, 1998. Fiscal year 1998 funds would not be 
authorized to be obligated for the rolling airframe missile 
(RAM) upgrade program until 30 days after the congressional 
defense committees receive the Secretary's report.
      The Senate amendment would authorize an increase of $34.0 
million in PE 64755N, including:
            (1) $19.0 to pursue the system integration needed 
        to integrate the cooperative engagement capability 
        (CEC), the advanced combat direction system (ACDS), and 
        the ship self-defense system (SSDS) local area networks 
        to create a singletactical picture and a central 
integrated combat direction system;
            (2) $2.0 million for continued development of the 
        NULKA decoy; and
            (3) $13.0 million for accelerating the infrared 
        search and track program (IRST).
      The conferees agree to authorize the following ship self-
defense increases to PE 64755N:
            (1) $10.0 million to pursue the system integration 
        needed to integrate the cooperative engagement 
        capability (CEC), the advanced combat direction system 
        (ACDS), and the ship self-defense system (SSDS) local 
        area networks to create a single tactical picture and a 
        central integrated combat direction for a quick 
        reaction combat capability (QRCC);
            (2) $4.0 million to activate the integrated ship 
        self-defense test site at Wallops Island;
            (3) $2.0 million for continued NULKA development; 
        and
            (4) $4.0 million to accelerate the IRST program.
      The conferees direct the Secretary of the Navy to assess 
the requirement for close-in defense of Navy surface ships as 
discussed in the House report (H. Rept. 105-132), and to report 
the results of that assessment and the plans for meeting the 
requirement to the congressional defense committees by February 
28, 1998.
Safety and survivability enhancements
       The budget request included $263.9 million in PE 65864N 
for test and evaluation support.
      The House bill would authorize an increase of $2.0 
million to continue the program for procurement, test, and 
alveolation of commercial off-the-shelf non-development items 
(COTS NDI) that have high potential for contributing to safety 
of flight, fire fighting, damage control, emergency 
preparedness ashore, survival at sea, and chemical/biological 
warfare defense. The additional funds would permit the program 
to assess COTS NDI that are new to the industrial marketplace.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $1.0 
million in PE 65864N for Navy safety and survivability 
enhancements.
E-2 eight-blade composite propeller system
      The budget request included $64.9 million in PE 24152N 
for development of pre-planned product improvements in E-2C 
aircraft and weapon system capabilities, involving $39.4 
million for E-2C mission system improvements.
      The House bill would authorize an increase of $10.0 
million to initiate a 24 month program for development and 
demonstration of an eight-blade composite propeller system for 
the E-2C.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request. The 
conferees understand that the Navy has advertised for bids and 
plans to award a contract to develop a new eight-blade 
composite propeller for the E-2C and C-2A aircraft to address 
existing system limitations and reduce maintenance and 
operations costs. The conferees direct the Secretary of the 
Navy to ensure that the solicitation and contract award process 
for the award of such a contract complies with Federal 
Acquisition Regulations.
Battle force tactical trainer
       The budget request included $59.0 million in PE 24571N 
for consolidated training systems development, including $2.9 
million for continued development of the battle force tactical 
training (BFTT) system.
      The House bill would authorize an increase of $5.0 
million for the integration of ship and battle force electronic 
surveillance systems into the BFTT system.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Joint tactical combat training system
       The budget request included $59.0 million in PE 24571N 
for consolidated training systems development, including $33.6 
million for continued development of the joint tactical combat 
training system (JTCTS). The JTCTS is a Navy-led, joint Air 
Force/Navy program for the development of fixed, transportable, 
and mobile range instrumentation for shore-based tactical air 
crew training and for deployable, at-sea naval expeditionary 
force training.
      The House bill would authorize a reduction of $27.5 
million to the budget request for JTCTS and would direct the 
Secretary of the Navy, in coordination with the Secretary of 
the Air Force, to conduct an assessment of the JTCTS 
requirement and development program and report the results of 
the assessment to the congressional defense committees by 
December 31, 1997.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request for 
the JTCTS program. The conferees understand that JTCTS is an 
Acquisition Category and an Office of the Secretary of Defense 
(OSD) special interest program, and that a thorough assessment 
and baseline review of the program was successfully completed 
in May 1997 by the Secretary of the Navy, the Secretary of the 
Air Force, a senior OSD review team and the Defense Test and 
Training Steering Group. The conferees further understand that 
the Navy Fleet commanders in chief have endorsed the JTCTS as 
their number two training range priority. The conferees also 
understand that the design of JTCTS provides a neck-down 
strategy for replacement of existing legacy training and test 
range instrumentation that will result in considerable savings 
when the planned transition to JTCTS begins in fiscal year 
2000. The conferees strongly support the development and 
fielding of common training and test range instrumentation 
systems for the Air Force andthe Navy and encourage the 
Secretary of Defense to ensure the maintenance of the schedule for 
development of JTCTS. The results of the program assessment directed in 
the House Report (H. Rept. 105-132) and any revisions to the program 
baseline, funding requirements, and schedule should be forwarded to the 
congressional defense committees by January 31, 1998.
Marine Corps communications systems
      The budget request included $38.3 million to support 
development of Marine Corps communications systems.
      The House bill would authorize an increase of $9.9 
million to support development of Marine Corps communication 
system requirements. Of this amount, $2.0 million was for the 
tactical hand-held radio; $1.5 million was for tactical remote 
sensors; $0.7 million was for Marine common hardware suite 
(MCHS); $1.0 million was for the tactical electronic 
reconnaissance processor and intelligence systems; $5.0 million 
was for close-range unmanned aerial vehicle (UAV) data links; 
and a $0.3 million decrement was for the TENCAP program.
      The Senate amendment would authorize an increase of $0.7 
million for MCHS.
      The conferees agree to authorize an increase of $7.0 
million for a total of $45.3 million in PE 26313M. Of this 
amount, $2.0 million is for the tactical hand-held radios and 
$5.0 million is for the close-range UAV data link.
Marine Corps ground combat/supporting arms systems
      The budget request included $12.6 million for Marine 
Corps ground combat system development initiatives.
      The House bill would authorize an increase of $5.0 
million in PE 26623M. Of this amount, $4.3 million would be 
used to integrate and test the AN/VVR-1 laser warning receiver 
on the M1A1 Abrams tank and $0.7 million would be used to 
support the development of Marine Corps clothing requirements.
      The Senate amendment would support the budget request.
      The conferees agree to authorize an increase of $2.1 
million in PE 26623M for the integration and testing of the AN/
VVR-1 laser warning receiver on the Marine Corps M1A1 tank.
Manufacturing technology programs
       The budget request included no funds for the Navy's 
manufacturing technology (MANTECH) program.
      The House bill would authorize funding for the MANTECH 
program through section 211 of Title II, as noted elsewhere.
      The Senate amendment would authorize an increase of $50.0 
million in PE 78011N in order to address funding shortfalls in 
the MANTECH program for fiscal year 1998. The Senate amendment 
also required the Secretary of the Navy to provide a report to 
the congressional defense committees on his plan to strengthen 
and stabilize funding for the Navy MANTECH program.
      The conferees agree to an increase of $55.0 million in PE 
78011N for the MANTECH program. The conferees are once again 
disappointed in the Navy's budget request for the manufacturing 
technology (MANTECH) program. The program has traditionally 
focused on making weapon systems and equipment more affordable 
through the application of advanced manufacturing methods to 
weapon systems production. In this time of severe budget 
constraints, the conferees expect the Navy to make every effort 
to pursue programs directed at lowering the long-term cost of 
weapon systems.
Overview
      The budget request for fiscal year 1998 contained an 
authorization of $14,451.4 million for Air Force, Research and 
Development in the Department of Defense. The House bill would 
authorize $14,659.7 million. The Senate amendment would 
authorize $14,302.3 million. The conferees recommended an 
authorization of $14,338.9 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Integrated High Payoff Rocket Propulsion Technology
       The budget request included $48.1 million for rocket 
propulsion technology in the Integrated High Payoff Rocket 
Propulsion Technology (IHPRPT) initiative programs.
      The House bill would authorize $57.6 million for IHPRPT 
programs, an increase of: $6.0 million to PE 62601F; $1.5 
million to PE 63302F; $1.0 million to PE 62111N; and $1.0 
million to PE 63217N.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $55.4 million for IHPRPT 
initiative programs, an increase of: $4.8 million to PE 62601F; 
$1.5 million to PE 63302F; and $1.0 million to PE 63217N.
Military Spaceplane
       The budget request included no funds for the Military 
Spaceplane technology program.
      The House bill would authorize an increase of $15.0 
million in PE 63302F for the Military Spaceplane program.
      The Senate amendment would authorize an increase of $10.0 
million in PE 63401F for the Military Spaceplane program.
      The conferees agree to authorize an increase of $10.0 
million for the Military Spaceplane program in PE 63401F.
      Although the National Space Launch Policy assigns to NASA 
the lead for reusable launch vehicle development, the 
Department of Defense has been participating in such activities 
for many years. The Air Force has developed a military 
spaceplane program to complement NASA's efforts while focusing 
on specific military requirements and applications, a 
responsibility that does not reside with NASA. The Commander-
in-Chief of U.S. Space Command is in the process of identifying 
military requirements for such a program and the Air Force has 
established a program office and a new program element to 
manage this activity. The Air Force is also working to include 
funding in the Future Years Defense Program for this effort. 
The conferees do not view these actions as duplicative of 
NASA's work on reusable launch vehicles.
      The conferees believe that the Department of Defense 
should begin to define a military spaceplane concept that meets 
legitimate military requirements in the future while exploiting 
technological progress made in NASA's reusable launch vehicle 
program. The conferees direct the Secretary of Defense to 
provide a report describing the status of this effort to the 
congressional defense committees by February 15, 1998.
Solar thermionics orbital transfer vehicle
       The budget request included no funds for the solar 
thermionics orbital transfer vehicle program.
      The House bill would authorize an increase of $20.0 
million in PE 63401F for the solar thermionics orbital transfer 
vehicle program.
      The Senate amendment would authorize an increase of $10.0 
million for this program.
      The conferees agree to authorize an increase of $7.5 
million in PE 63401F for the solar thermionics orbital transfer 
vehicle.
      The conferees have supported thermionics technology 
development for space applications. The solar powered orbital 
transfer vehicle has been identified by the Air Force as a 
Third Millennium initiative. This program combines thermionic 
technology for electricity production and thermal propulsion 
which can be used to move spacecraft to higher or new orbits.
Joint air-to-surface standoff missile/standoff land attack missile-
        expanded response
       The budget request included $9.6 million in PE 64312N 
and $203.3 million in PE 27325F for development of the Air 
Force/Navy Joint Air to Surface Standoff Missile (JASSM) 
program and $28.9 million in PE 64603N to continue development 
of the Navy's Standoff Land Attack Missile-Enhanced Response 
(SLAM-ER) program. The request also included $21.7 million for 
procurement of 22 SLAM-ER missiles for the Navy.
      The House bill and the Senate amendment would authorize 
the budget request for JASSM and for SLAM-ER.
      The conferees direct the Secretary of Defense to include 
SLAM-ER plus and the two alternative systems that are funded in 
the JASSM program in the Analysis of Alternatives for JASSM.
      Accordingly, the conferees agree to authorize $5.5 
million in PE 64321N and $170.0 million in PE 27325F to 
continue the JASSM program, $28.9 million in PE 64603N to 
continue the development of SLAM-ER, and $21.7 million for 
SLAM-ER procurement.

                       JOINT AIR-TO-SURFACE STANDOFF MISSILE/STANDOFF LAND ATTACK MISSILE                       
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                               Budget                       Conference          
               Program element and description                 request    HNSC      SASC     agreement   Change 
----------------------------------------------------------------------------------------------------------------
PE64312N--Tri-Service Standoff Attack Missile...............       9.6       9.6       9.6        5.5       -4.1
PE27325F--Joint Air-to-surface standoff missile.............     203.3     203.3     203.3      170.0      -33.3
PE64603N--Unguided Conventional Air-launched Weapons (SLAM                                                      
 ER)........................................................      28.9      28.9      28.9       28.9   ........
WPN line 18--Harpoon Mods (SLAM ER).........................      21.7      21.7      21.7       21.7   ........
                                                             ---------------------------------------------------
      Total.................................................     263.5     263.5     263.5      226.1      -37.4
----------------------------------------------------------------------------------------------------------------

      The conferees note that the lack of agreement between the 
Navy and the Air Force on the conduct of the JASSM program 
calls for clear guidance from the Secretary of Defense. The 
Secretary has four obvious alternatives to examine that could 
have entirely different effects on future budgets.
      (1) Develop JASSM to meet the operational needs of the 
Navy and the Air Force, with SLAM-ER not procured beyond an 
interim capability.
      (2) Continue the JASSM program as a joint program for 
both the Navy and Air Force, while the Navy continues a 
separate development of SLAM-ER as currently planned.
      (3) Develop separate programs for the Navy and the Air 
Force, with SLAM-ER as the Navy choice, and JASSM as the Air 
Force selection.
      (4) Develop SLAM-ER as the single program for both the 
Air Force and the Navy.
      The conferees direct the Secretary of Defense to review 
the SLAM-ER and JASSM programs and alternatives outlined above 
and to report to the congressional defense committees within 60 
days of the enactment of this Act.
Major test and evaluation investment
       The budget request included $47.3 million in PE 64759F 
for major test and evaluation investment.
      The House bill would authorize an increase of $14.8 
million for range improvement program/modernize range C41 
capabilities.
      The Senate amendment would authorize a decrease of $6.0 
million for infrastructure reduction.
      The conferees agree to authorize an increase of $10.0 
million for the range modernization described in the House 
report (H. Report 105-132). The conferees also agree to a 
general reduction of $3.0 million in PE 64759F.
Smart monitoring system
       The budget request included $5.9 million for pollution 
prevention in PE 65854F.
      House bill would authorize an additional $5.0 million in 
PE 65854F to expand Air Force demonstration efforts related to 
the smart monitoring system, a real-time monitoring technology 
for soil and groundwater contamination.
      The Senate amendment would authorize the budget request. 
The conferees agree to authorize an increase of $4.0 million in 
PE 65854F for the smart monitoring system.
Rocket Systems Launch Program
       The budget request included $8.0 million in PE 65860F 
for the Rocket Systems Launch Program (RSLP).
      The House bill would authorize an increase of $25.0 
million for RSLP to support the launch of an Atmospheric 
Intercept Technology (AIT) demonstration payload.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $20.0 
million for RSLP in support of the AIT program. The conferees 
direct the Ballistic Missile Defense Organization and the Air 
Force to develop a coordinated implementation plan for 
executing the RSLP and AIT budgets in order to maximize the 
benefit to the AIT program.
Cruise missile defense
       The budget request included no funds to begin 
transitioning sensor technology from the Defense Advanced 
Research Projects Agency (DARPA) to the Air Force for insertion 
into the Airborne Warning and Control System (AWACS) or the 
Joint Surveillance Target Attack Radar System (JSTARS) for 
cruise missile defense.
      The House bill would authorize the budget request.
      The Senate amendment would authorize increases of $10.0 
million to PE 27417F to begin the necessary upgrades to AWACS, 
and $10.0 million to PE 27581F to begin necessary upgrades to 
JSTARS.
      The conferees agree to authorize an increase of $3.0 
million in PE 27581F to begin necessary upgrades to JSTARS for 
cruise missile defense.
      Given the growing threat posed by cruise missiles, the 
conferees continue to support development of a comprehensive 
cruise missile defense architecture, integrated into DOD's 
overall air and theater missile defense efforts. Because 
counter cruise missile technologies have matured at DARPA, and 
because DARPA funding to support key sensor technologies ends 
in fiscal year 1998, the conferees strongly urge the Air Force 
to begin to integrate these technologies into operational 
platforms, specifically into the AWACS and JSTARS platforms. 
The conferees expect the Air Force to assume these two 
important initiatives. To support these efforts, the conferees 
encourage the Air Force to prepare expeditiously the report on 
cruise missile defense directed in the statement of managers 
accompanying the conference report on H.R. 2266 (H. Rept. 105-
265). The conferees understand that the Air Force's report 
could conclude that the Air Force should apply additional funds 
to cruise missile defense upgrades to the AWACS or JSTARS 
programs during fiscal year 1998 beyond those approved in this 
Act. If that is the conclusion of the report, the conferees 
would be willing to entertain a request to reallocate funds 
within the AWACS or JSTARS programs, or to reprogram funds from 
other activities.
Overview
      The budget request for fiscal year 1998 contained an 
authorization of $9,069.7 million for Defense-Wide, Research 
and Development in the Department of Defense. The House bill 
would authorize $9,611.0 million. The Senate amendment would 
authorize $9,796.8 million. The conferees recommended an 
authorization of $9,546.1 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


University research initiatives
      The budget request included $237.7 million in PE 61103D 
for university research initiatives including $10.0 million for 
the Defense Experimental Program to Stimulate Competitive 
Research (DEPSCoR).
      The House bill would authorize a decrease of $13.0 
million in PE 61103D: an increase of $10.0 million for 
(DEPSCoR); and a decrease of $23.0 million.
      The Senate amendment would authorize $20.0 million for 
DEPSCoR within the amount of the budget request.
      The conferees agree to authorize an increase of $10.0 
million in PE 61103D for DEPSCoR in addition to the $10.0 
million in the amount of the budget request. The conferees also 
agree to a reduction, without prejudice, of $20.0 million in PE 
61103D.
Next generation internet
      The budget request included $40.0 million in PE 62110E 
for the Defense Advanced Research Projects Agency (DARPA) 
component of the Next Generation Internet (NGI) program.
      The House bill would authorize an increase of $15.0 
million in PE 62110E for specific connectivity, functionality, 
services, and software among the applications communities and 
regional consortia to maximize the value of the services 
deployed under the NGI. The House bill would also direct the 
use of competitive procedures in the award of contracts, 
grants, or other transactions under the program and would 
encourage the use of cost-sharing where feasible.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $2.0 
million in PE 62110E for the purposes discussed in the House 
report (H. Rept. 105-132). The conferees endorse the NGI 
program and support the concept of involving the applications 
communities, including federal agencies, state and local 
governments, academia, and the private sector, to incorporate 
networking technologies developed under the program to achieve 
capabilities beyond those of the current Internet 
infrastructure. The conferees also support the formation of 
cooperative agreements within the regional consortia 
established under the program to leverage the knowledge, 
skills, and methods of the individual members from government, 
industry, and academia. The conferees encourage DARPA to 
consider supporting, under the NGI program, industry and 
university consortia investigating and demonstrating ultra-high 
speed, optical time-division-multiplexed technologies for 
networks and interchanges.
Chemical and biological defense program
      The budget request included $530.9 million for the 
chemical and biological defense program ($320.9 million for 
research, development, test and evaluation activities and 
$210.0 million for procurement) and $61.0 million for the 
Defense Advanced Research Projects Agency (DARPA) biological 
defense program.
      The House bill would authorize an increase of $16.6 
million for the chemical/biological defense program in the 
following activities: a $10.8 million increase in PE 62384BP to 
continue the SAFEGUARD proof-of-concept multi-spectral sensor 
program; a $1.5 million increase in PE 63384BP for vaccine 
advanced development; a $858,000 increase in PE 64384BP for 
vaccine development and a $5.0 million increase in PE 63884BP 
to support on-going development efforts in detectors, 
decontamination equipment, and protective equipment for the 
Chemical-Biological Quick Reaction Force (CBQRF) and its 
components.
      The Senate amendment would authorize an increase of $6.5 
million for the chemical-biological defense research and 
development program for the following activities: $2.0 million 
for the development of a joint service prototype hybrid 
integrated sensor array for chemical and biological point 
detection; $4.5 million to meet unfunded requirements for 
biological detectors for the Chemical-Biological Incident 
Response Force (CBIRF); would make $1.5 million available from 
funds requested for PE 62383E for a study on the use of 
antibodies as medical defenses against biological agents; and 
would reduce the budget request for PE 62383E by $6.5 million. 
Additionally, the amendment would recommend that $16.1 million 
of fiscal year 1997 funds, identified by the Department of 
Defense as excess to the program because of the inability to 
execute the assembly of biological integrated defense systems 
(BIDS) until the end of fiscal year 1999, be used instead for 
unfunded research, development and procurement efforts in the 
chemical-biological defense program, counterproliferation and 
including counterterrorist efforts to protect against the use 
of weapons of mass destruction.
      The conferees agree to authorize an increase of $12.4 
million to meet shortfalls in the chemical and biological 
defense program for research and development of detection 
capabilities, to include the following: $10.5 million in PE 
62384BP, of which $3.0 million shall be available for the 
SAFEGUARD program; and a $2.0 million increase in PE 61384BP to 
increase efforts in research and development of chemical/
biological detection capabilities. The conferees also agree to 
a $6.5 million reduction in PE 62383E.
      To close gaps and funding shortfalls in medical defenses 
against biological agents, the conferees direct that $1.5 
million in PE 63384BP and $858,000 in PE 64384BP be made 
available for vaccine development efforts, and that $1.5 
million in PE 62383E be made available to study the use of 
therapeutic human antibodies as medical defenses against 
biological agents. Additionally, the conferees direct the 
Secretary of Defense to submit the report required by the 
Senate report on the National Defense Authorization Act for 
Fiscal Year 1997 (S. Rept. 104-267) on the utility and possible 
benefits of this technology, by March 31, 1998.
      The conferees have reviewed the Department of Defense 
March 1997 annual report to Congress on the nuclear, 
biological, and chemical defense program. The conferees 
understand that the Department has responded to all 
recommendations in the General Accounting Office's report 
NSIAD-96-102 ``Chemical and Biological Defense: Emphasis 
RemainsInsufficient to Resolve Continuing Problems.'' In 
addressing the recommendations of the GAO, the conferees believe that 
the Department is now better prepared to address the shortcomings that 
still exist in the U.S. armed forces' chemical-biological defense 
posture.
      However, funding constraints in the Department's budget 
request could delay modernization and affect the training and 
readiness of the force. The conferees understand that the Joint 
Senior Leaders Course and the Toxic Agent Leader Training 
Course have been dropped from the Army Chemical School's 
training course list because of funding constraints. The 
conferees also understand that the Department lacks a mechanism 
to provide adequate information on the current status of 
chemical-biological defense training, equipment, and readiness. 
The conferees strongly recommend the incorporation of an 
assessment of chemical-biological defense training and 
readiness into the unit readiness reporting system and direct 
the Department of Defense to report to the congressional 
defense committees on steps that will be taken, in lieu of 
reinstating the training courses, to ensure that chemical-
biological defense specialists maintain their expertise, and 
how units and senior leaders in the armed forces will maintain 
their proficiency in chemical-biological matters.
      The Secretary of Defense recommended in the Quadrennial 
Defense Review that the Department increase funding by 
approximately $1.0 billion over the program plan on 
counterproliferation, particularly for protective measures 
against chemical weapons. In response to that recommendation, 
the conferees expect that increased funding provided in fiscal 
year 1998 for chemical and biological defenses will be utilized 
in accordance with requirements identified as shortfalls by the 
Joint Staff and the Counterproliferation Program Review 
Committee (CPRC). Additionally, the conferees expect the fiscal 
year 1999 budget request, and subsequent budget requests, to 
reflect the recommendations contained in the QDR for increased 
funding levels for the chemical-biological defense program.
      Despite congressional direction contained in the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
160) that management and oversight of the chemical and 
biological warfare defense program and the chemical and 
biological medical defense be conducted by a single executive 
agent and program manager, the conferees understand from the 
Counterproliferation Program Review Committee's May 1997 
``Report on Activities and Program for Countering Proliferation 
and NBC Terrorism'' that `` * * * beginning in FY98, [the 
Defense Advanced Research Projects Agency (DARPA) biological 
warfare defense program] will no longer be incorporated into 
the CBD [chemical-biological defense] Program management and 
oversight structure.'' The conferees direct the Secretary of 
Defense to ensure that the DARPA biological warfare defense 
program is coordinated and integrated under the program 
management and oversight of the Department's chemical-
biological defense program.
      The conferees understand that the Department's policies 
on anthrax vaccination of U.S. armed forces and support for 
other than U.S. armed forces are awaiting final approval, and 
that these decisions will affect total funding, vaccine 
production, and storage requirements. The conferees also note 
the impending award of a prime systems contract to develop new 
biological defense vaccines, pursue vaccine licensing, and 
produce stockpile vaccines to meet the Department's 
requirements.
      The conferees understand that the Department of Defense 
is currently dependent upon a single source of supply for 
permeable chemical protective garment materials used in the 
joint service chemical protective suit and related chemical 
protective garments, and believe that the Department of Defense 
should consider taking those actions necessary to qualify 
additional sources of supply for these materials. The conferees 
direct the Secretary of the Army, as executive agent for the 
chemical-biological defense program, to report to the 
congressional defense committees on any plans to qualify 
additional sources for these materials.
      The conferees direct the Secretary of Defense to address 
the above issues as specific areas of interest in the next 
annual report to Congress on the NBC defense program.
Tactical technology
      The budget request included $157.3 million in PE 62702E 
for tactical technology programs.
      The House bill would authorize a decrease of $43.9 
million in PE 62702E.
      The Senate amendment would authorize an increase of $3.0 
million to provide for lethality demonstration and the 
definition of a tactical configuration of the small low-cost 
interceptor device (SLID).
      The conferees agree to authorize a decrease of $16.0 
million in PE 62702E: a general decrease of $10.0 million; a 
decrease of $3.0 million for the compact laser program; and a 
decrease of $3.0 million for chemically specific detection. The 
conferees also agree to authorize $3.0 million of funds 
available in PE 62702E for facial recognition technology.
      The conferees urge the Defense Advanced Research Projects 
Agency to fund the SLID program in a manner to provide for the 
greatest likelihood of a rapid, successful transition to the 
Army.
Integrated command and control
      The budget request included $37.0 million in PE 62708E 
for integrated command and control technology.
      The House bill would authorize an increase of $23.0 
million for flat panel display initiative/high definition 
systems.
      The Senate amendment would authorize an increase of $18.0 
million for flat panel display technology.
      The conferees agree to authorize an increase of $12.0 
million in PE 62708E for flat panel display technology. The 
conferees recommend that the program place increased emphasis 
on the demonstration of flat panel displays for various 
applications by the military services in order to facilitate 
the transition of the program to the services for military 
applications.
Materials and electronics technology
      The budget request included $192.1 million in PE 62712E 
for materials and electronics technology.
      The House bill would authorize an increase of $7.5 
million in PE 62712E for 3-D microelectronics.
      The Senate amendment would authorize an increase of $15.5 
million in PE 62712E: $1.0 million for hard carbon coatings; 
$7.5 million for seamless high off-chip connectivity (SHOCC); 
and $7.0 million for mixed mode electronics multitechnology 
insertion (MIME).
      The conferees agree to authorize the following increases 
in PE 62712E: $5.0 million for 3-D microelectronics; $1.0 
million for hard carbon coatings; $6.0 million for SHOCC; $7.0 
for MIME; $6.0 million to continue the program for applied 
research in extreme ultraviolet lithography and fabrication of 
nanoelectronic structures as recommended in the House report 
(H. Rept. 105-132); $4.0 million to accelerate the development 
of life support trauma and transport (LSTAT) and the joint 
service program for the test of the LSTAT that is being led by 
the Army as recommended in the House report (H. Rept. 105-132), 
and $3.0 million for the development of technologies for 
cryogenic electronics and high temperature superconductivity as 
recommended by the House report (H. Rept. 105-132).
      With regard to the LSTAT program, the conferees agree 
with the requirement in the House report (H. Rept. 105-132), 
which directs the Secretary of the Army to submit a report on 
the plan for completing the joint service test program and 
plans for fielding the LSTAT and other advanced battlefield 
life support and evacuation systems to the congressional 
defense committees with the submission of the defense budget 
request for fiscal year 1999.
Explosives demilitarization technology
      The budget request included $12.2 million for the 
explosives demilitarization program (PE 63104D).
      The House bill would authorize an increase of $3.0 
million to maintain the level of funding necessary to permit 
the acceleration of promising technologies and the evaluation 
of additional alternative technologies in the explosives 
demilitarization program (PE 63104D) established in the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106).
      The Senate amendment included a provision (sec. 235) that 
would direct the Secretary of Defense to conduct an explosive 
munitions demilitarization demonstration program, and using 
competitive procedures, conduct a demonstration using an 
existing, commercially available blast chamber technology as an 
alternative to open burning, open pit detonation of munitions; 
require the Secretary of Defense to submit to Congress, along 
with the fiscal year 2000 budget, a report on the results of 
the demonstration program and assessment of the relative 
benefits of the blast chamber technology with regard to levels 
of emissions and noise, and a cost benefit analysis of this 
technology. The provision would increase the budget request for 
the explosives demilitarization technology program by $6.0 
million for the demonstration program and reduce by $6.0 
million the budget request for the Army account for special 
equipment for user testing.
      The Senate recedes.
      The conferees agree to authorize an increase of $4.0 
million for the munitions standardization, effectiveness and 
safety program (PE 65805A) which shall be used for the 
explosives demilitarization technology program (PE 63104D) to 
maintain the level of funding necessary to permit the 
acceleration of promising technologies and to evaluate 
alternative technologies. The conferees understand that 
commercial technology that utilizes blast chamber technology is 
available as a potential alternative technology to demilitarize 
old conventional ammunition. The successful demonstration of 
this technology could reduce the Army's reliance on open 
burning and open detonation.
      The conferees direct that, from the authorized funds 
available to the program in fiscal year 1998, the Secretary of 
Defense shall conduct a demonstration program utilizing 
commercially available blast chamber technology and provide a 
report to the congressional defense committees no later than 
March 1, 1999 on the results of the demonstration program. The 
program shall be conducted using competitive procedures. The 
report shall include an assessment of the relative benefits of 
utilizing a blast chamber technology and the open burning, open 
pit detonation process with regard to the levels of emissions 
and noise that results from the use of these processes and a 
cost benefit analysis of this technology.
Counterterror technical support program
      The budget request included $34.8 million for the 
counterterror technical support program.
      The House bill would authorize $41.8 million, a $7.0 
million increase for safety devices and facial recognition 
technology.
      The Senate amendment would authorize a $20.0 million 
increase for research and development activities on structural 
response and mitigation, counterterrorist explosive research, 
demonstration of non-intrusive inspection technologies and 
facial recognition technology.
      The conferees agree to authorize an increase of $3.0 
million for the counterterror technical support program for 
efforts to develop innovative technologies to protect U.S. 
forces and infrastructure against acts of terrorism. The 
conferees note that $3.0 million is available for the facial 
recognition technology program within the defense tactical 
technology program (PE 62702E).
      Collaborative efforts with allies who have demonstrated 
capabilities to counter terrorist acts, such as Israel and the 
United Kingdom, should remain a high priority for the United 
States. The tragic deaths of U.S. forces in Saudi Arabia as a 
result of terrorist attacks on structures where U.S. armed 
forces lived and worked highlight the urgent need for the 
Department of Defense (DOD) to examine options to retrofit 
existing structures and to develop design guidelines for new 
and existing structures. The conferees support recent 
collaborative efforts between the United States, Israel, and 
the United Kingdom, to strengthen existing structures against 
terrorist and ballistic missile attacks.
      The budget request included $13.0 million in the 
physicalsecurity equipment program (PE 63228D) to test and evaluate 
commercial equipment for force protection. The conferees believe that 
fiscal year 1998 funds in this program should be used to evaluate 
commercially available technology that may provide the DOD with options 
to retrofit existing structures, which would provide increased 
protection to U.S. forces against terrorist attacks.
      While Congress has supported the funding for a Pulsed 
Fast Neutron Analysis (PFNA) technology program in prior years, 
the conferees are concerned about the Department's continued 
failure to request funds for this activity. Based on issues 
raised by a recent General Accounting Office report on the PFNA 
system technology, the conferees agree with the recommendations 
in the House report (H. Rept. 105-32) that direct the Secretary 
of Defense and the Secretary of Treasury to conduct an 
assessment of the operational requirements for a PFNA cargo 
inspection system, and report to the Congress on the results of 
that assessment and the other issues raised by the House by 
December 31, 1997. Should there be a joint recommendation to 
continue the program, the conferees direct the Department to 
notify the congressional defense committees of its intention to 
use fiscal year 1998 funds in this program for that purpose.
Domestic emergency response to threats of terrorist use of weapons of 
        mass destruction
      The budget request included $170.2 million for key 
Department of Defense programs to counter paramilitary and 
terrorist threats involving weapons of mass destruction. This 
total included $49.5 million to improve emergency response 
preparedness and coordination with state and local agencies 
through First Responder training, interagency exercises and 
technical assistance.
      The House bill would authorize increases of $2.0 million 
in the counterterror technical support program (PE 63122D), 
$5.0 million in the chemical/biological defense program (PE 
63884BP), and a total of $12.0 million in the 
counterproliferation support program (PE 65160D) for 
improvements in emergency response force equipment and training 
for response to potential terrorist use of weapons of mass 
destruction.
      The Senate amendment would authorize the budget request. 
The amendment would also make available, from the verification 
and control technology activity of the Department of Energy 
budget for other defense activities, $3.0 million for training 
and related activities to prepare Federal, State, and local 
First Responders to work effectively as part of the domestic 
emergency response program.
      The House recedes.
      The National Defense Authorization Act for Fiscal Year 
1997 (Public Law 104-201) directed the President to take 
immediate action to enhance the capability of the Federal 
government to prevent and respond to terrorist incidents 
involving weapons of mass destruction, and to provide enhanced 
support to improve the capabilities of state and local 
emergency response agencies to prevent and respond to such 
incidents at both the national and local levels. The 
President's assessment and those actions taken at the 
interagency level and within the Department of Defense are 
detailed in the President's January 1997 report to the Congress 
and in the Department of Defense May 1997 report to Congress, 
``Domestic Preparedness Program in the Defense against Weapons 
of Mass Destruction.''
      The conferees note the actions taken to date to enhance 
emergency domestic preparedness and response to terrorist 
nuclear, biological, or chemical attacks under the Department's 
counterproliferation support program and the chemical-
biological defense program. The conferees support the 
Department's budget request to continue these efforts in 
domestic emergency response preparedness through First 
Responder training and assistance to metropolitan area 
authorities, improvement of the Department's rapid chemical and 
biological response capabilities, and the conduct of 
preparedness exercises in coordination with Federal, state, and 
local agencies.
      Public Law 104-201 requires the Secretary of Defense to 
establish and maintain at least one chemical-biological 
domestic terrorism rapid response team. The conferees direct 
the Secretary of the Army, as executive agent for the domestic 
emergency response program, to ensure that the plans, programs, 
and budget of the Chemical-Biological Quick Reaction Force 
(CBQRF) and its components are reviewed to ensure full 
coordination and integration of participating DOD assets. The 
conferees also direct the Assistant to the Secretary of Defense 
(Nuclear, Chemical, and Biological Defense Program) to ensure 
that all research, development, and acquisition efforts in 
support of the CBQRF and its components are fully integrated 
and coordinated within the Department's chemical and biological 
defense program.
      The conferees note that an interagency training strategy 
is being developed that would initially focus training under 
the domestic emergency response preparedness program on 
professional emergency response organizations in the 27 cities 
and metropolitan areas identified by the Federal Bureau of 
Investigation as being at particularly high risk, and would 
complete First Responder training for 126 major metropolitan 
areas and cities within three years. The training program and 
priorities must be coordinated with State emergency management 
directors. The conferees agree with the overall need to 
establish training priorities, but recommend that emphasis also 
needs to be placed on training the local volunteer emergency 
First Response organizations that make up the majority of the 
nation's emergency response forces. The conferees also believe 
that in addition to the ``train the trainer'' approach being 
used in the existing program, an exportable training package 
should be developed that is oriented toward the training of 
volunteer emergency First Responders.
      The conferees endorse the use of training exercises to 
test and improve consequence management response capabilities, 
but believe that the exercise site requirements should be based 
on the training and exercise needs of the agencies to be 
exercised, site capabilities, frequency of use, and proximity 
to participating agencies. The conferees encourage the 
development of an overall coordinated training exercise 
strategy similar to that developed for training by the Senior 
Interagency Group.
      Responding to domestic emergencies has been identified in 
the report of the Quadrennial Defense Review (QDR) as an 
appropriate mission for the National Guard. Consistent with the 
President'sJanuary 1997 report to the Congress and the May 1997 
Department of Defense report on ``Domestic Preparedness Program in the 
Defense against Weapons of Mass Destruction,'' the conferees direct the 
Secretary of Defense to report to the congressional defense committees 
on the status of any plans for assigning the National Guard a role in 
countering chemical and biological terrorism in the United States. The 
report should define any such missions of the National Guard and how 
that role complements other Federal, State, and local authorities with 
similar responsibilities; the cost for developing the capability for 
National Guard personnel to train State and local First Responders; the 
cost for chemical and biological technology and equipment; and the need 
to develop appropriate response plans, while avoiding unnecessary 
duplication.
      The conferees direct the Secretary of Defense, in 
coordination with the Director of the Federal Emergency 
Management Agency and the Director of the Federal Bureau of 
Investigation, to provide an annual assessment of progress in 
the domestic emergency response preparedness program. The 
report should be submitted to the congressional defense 
committees beginning with the fiscal year 1999 budget request 
and extending through fiscal year 2001.
Counterproliferation support program
      The budget request included $65.3 million for the 
counterproliferation support program (PE 63160D).
      The House bill would authorize an increase of $3.0 
million to continue the counterproliferation mission analysis 
and planning system (CAPS).
      The Senate amendment would authorize an increase of $20.0 
million to the budget request for the following activities: 
$3.0 million for the high frequency active auroral research 
program (HAARP), $1.0 million for development of a portable 
trace element detection system; $6.0 million to continue the 
SAFEGUARD proof-of-concept multi-spectral sensor program; and 
$10.0 million to continue the CAPS program. In addition, the 
amendment would recommend a $7.0 million increase to the budget 
request for U.S. Special Operations Command (USSOCOM) 
operations and maintenance for equipment to detect, and destroy 
underground facilities, and for training activities to destroy, 
render safe, transport or recover weapons of mass destruction 
from deep underground structures.
      The conferees agree to authorize an increase of $10.0 
million to the budget request for the counterproliferation 
support program (PE 63160D) to continue CAPS ($7.0 million) and 
HAARP ($3.0 million). The conferees also agree to a $7.0 
million increase to the budget request for USSOCOM operations 
and maintenance for WMD equipment and training.
      The conferees agree to a separate provision, described 
elsewhere in this report, that would allow the Secretary of 
Defense to reprogram up to $50.0 million from amounts 
authorized for fiscal year 1998 for unfunded shortfalls in key 
counterproliferation capabilities or other areas where more 
counterproliferation progress can be achieved with additional 
funding.
      In addition to the reprogramming notifications required 
by law, the conferees direct the Secretary of Defense to notify 
the congressional defense committees 30 days in advance of its 
intent to obligate or expend fiscal year 1998 funds not 
authorized by this Act for counterproliferation activities. The 
notification shall include the purpose for which the funds are 
to be utilized, and a certification that the activity addresses 
a shortfall in existing and programmed capabilities to counter 
the proliferation of weapons of mass destruction (WMD) or their 
means of delivery, as identified by the Commanders in Chief 
(CINCs) and the Counterproliferation Program Review Committee 
(CPRC).
Ballistic Missile Defense Organization funding
      The budget request included approximately $2.6 billion 
for the Ballistic Missile Defense Organization (BMDO) for 
research, development, test, and evaluation (RDT&E). The budget 
request also included $386.4 million in procurement funds 
formerly managed by BMDO that were transferred to the military 
services. As addressed elsewhere in this report, the conferees 
have agreed to include a legislative provision requiring that 
these procurement funds be transferred back to BMDO. In 
addition, the conferees have agreed to specifically authorize 
these procurement funds in their original BMDO program 
elements. Consistent with these changes, the following 
direction addresses these fiscal year 1998 procurement funds as 
part of the budget request for BMDO. Funding direction 
regarding BMDO military construction is located elsewhere in 
this report. Specific programmatic and funding guidance is 
provided below.

                                             BMDO FUNDING ALLOCATION                                            
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                                                       Total    
         Program element          Budget request    SASC change     HNSC change    Conf. change     authorized  
----------------------------------------------------------------------------------------------------------------
  RDT&E:                                                                                                        
    Support Technology..........           249.5          +188.4           +35.0          +171.0           420.5
    THAAD \1\...................           556.1          -202.7           +45.0          -150.0           406.1
    Navy Lower Tier.............           267.8  ..............           +22.0           +22.0           289.8
    Navy Upper Tier.............           194.9           +80.0          +150.0          +150.0           344.9
    MEADS.......................            48.0  ..............  ..............  ..............            48.0
    BPI.........................            12.9            +5.0       \2\ -12.9            +3.5            16.4
    NMD.........................           504.1          +474.0          +474.0          +474.0           978.1
    Joint TMD...................           542.6           +34.0       \2\ -18.7           +39.0           581.6
    PAC-3 EMD...................           206.1  ..............  ..............  ..............           206.1
    Cooperative BMD.............  ..............  ..............          +123.1  ..............  ..............
  Procurement:                                                                                                  
    TMD-BM/C3...................            20.1  ..............  ..............  ..............            20.1
    Navy Lower Tier.............            15.4  ..............  ..............  ..............            15.4
    PAC-3.......................           349.1  ..............  ..............  ..............           349.1
                                 -------------------------------------------------------------------------------
      BMDO Total................         2,966.6          +578.7          +817.5          +709.5         3,676.1
----------------------------------------------------------------------------------------------------------------
\1\ Following submission of the budget request, the Department of Defense submitted a revised fiscal year 1998  
  budget request for THAAD of $353.4 million for Dem/Val and no funds for EMD.                                  
\2\ Transfer to Cooperative BMD.                                                                                

                       low cost launch technology

      The budget request included no funds to support low cost 
launch technologies, such as pressure fed engine technology.
      The House bill would authorize an increase of $15.0 
million in PE 63302F for development of the Scorpius low cost 
launch concept.
      The Senate amendment would authorize an increase of $10.0 
million in PE 63173C for low cost launch technology 
development, including the Scorpius concept.
      The conferees agree to authorize an increase of $5.0 
million in PE 63173C and an increase of $5.0 million in PE 
63401F for low cost launch technology, including the Scorpius 
and Excalibur concepts.

               theater high altitude area defense system

      The budget request included $556.1 million for the 
Theater High Altitude Area Defense (THAAD) program, of which 
$294.6 million was included in PE 63861C and $261.5 million was 
included in PE 64861C. The Department of Defense, after an 
analysis of the THAAD program by the Quadrennial Defense 
Review, submitted an amended budget request of $353.4 million 
in PE 63861C and no funding in PE 64861C.
      The House bill would authorize the original budget 
request in PE 63861C and $306.5 million in PE 64861C.
      The Senate amendment would authorize $353.4 million in PE 
63861C and no funds for THAAD in PE 64861C.
      The conferees agree to authorize $406.1 million in PE 
63861C for THAAD and no funds in PE 64861C.
      The conferees express their continued strong support for 
THAAD and believe that fielding THAAD as expeditiously as 
possible is a matter of highest priority.
      The conferees understand that the funding added for THAAD 
demonstration and validation will be used for extensive risk 
reduction activities to put the program on sounder technical 
and programmatic footing when it enters engineering and 
manufacturing development (EMD) in fiscal year 1999.
      The conferees also support DOD efforts to contain program 
cost growth that could result from schedule delays and 
technical complications. The conferees expect the Secretary of 
Defense to review the full range of cost control options 
applicable to the EMD phase of the program, including, but not 
limited to, options involving competition and leader-follower. 
The conferees direct the Secretary of Defense to submit a 
report on the results of this review to the congressional 
defense committees by March 15, 1998.
      The conferees continue to note their concern over long 
delays in the THAAD program. In the wake of the Gulf War, 
Congress directed the deployment of effective theater missile 
defenses at the earliest possible date. The THAAD program was 
initiated in calendar year 1992 and deployment originally 
planned for the mid-1990s. Yet BMDO now supports a 14-year 
development program, with a first unit equipped(FUE) in 
calendar year 2006, arguing that a 12-year development program entails 
excessive programmatic and schedule risks.
      The conferees understand that the most recent THAAD 
schedule supported by BMDO includes a number of opportunities 
to accelerate the program, depending on the technical progress. 
The conferees continue to believe that rapid deployment is 
critical to meet well understood warfighter requirements, and 
that every reasonable effort should be made to achieve an FUE 
in calendar year 2004. The conferees direct the Secretary of 
Defense to take all appropriate budgetary and programmatic 
steps for fiscal year 1998 to ensure that the program can be 
accelerated if opportunities arise to do so.
      The conferees are also concerned that a delay in the 
program will adversely affect THAAD EMD and procurement funding 
in the FYDP. The conferees direct the Secretary of Defense to 
submit a FYDP that fully funds a THAAD program oriented toward 
the earliest possible deployment, consistent with moderate 
program risk.

                     navy upper tier (theater wide)

      The budget request included $194.9 million in PE 63868C 
for the Navy Upper Tier theater missile defense system.
      The House bill would authorize an increase of $150.0 
million for the Navy Upper Tier program.
      The Senate amendment would authorize an increase of $80.0 
million for the Navy Upper Tier program.
      The Senate recedes.
      The conferees are concerned that the Department of 
Defense still has not thoroughly assessed the feasibility of 
accelerating the currently planned Navy Upper Tier deployment 
date of fiscal year 2008. Noting numerous administration 
statements attaching high priority to TMD programs, the 
conferees direct the Secretary of Defense to report to the 
congressional defense committees no later than February 15, 
1998, on the cost and technical feasibility of options for a 
more robust Navy Upper Tier flight test program, the earliest 
technically feasible deployment date, and costs associated with 
such a deployment date.

                        national missile defense

      The budget request included $504.1 million in PE 63871C 
for the National Missile Defense (NMD) program. Following the 
budget submission, and pursuant to the Quadrennial Defense 
Review, the Secretary of Defense requested that the NMD budget 
request be increased by $474.0 million for fiscal year 1998.
      The House bill and Senate amendment would authorize an 
increase of $474.0 million for the NMD program.
      The conferees agree to authorize an increase of $474.0 
million for the NMD program.
      The conferees have expressed concern for some time that 
the NMD program has been underfunded. The Department of Defense 
has acknowledged this funding shortfall and recommended an 
increase of $474.0 million in fiscal year 1998, and 
approximately $2.3 billion over the years of the Future Years 
Defense Program (FYDP). The conferees note that this does not 
include any funding for the actual deployment of an NMD system.
      Although the conferees are pleased that the Secretary of 
Defense has sought to rectify NMD funding shortfalls, they are 
disappointed that it has taken so long. Even with significant 
congressional increases over the last two years, the NMD 
program remains high risk, largely due to the administration's 
failure to adequately fund robust testing activities. 
Unfortunately, the addition of $474.0 million in fiscal year 
1998 will do little in the near-term to compensate for this 
problem. The conferees are concerned by the lack of detail 
accompanying the Secretary of Defense's request to increase the 
NMD program budget by $2.3 billion over the FYDP. In addition, 
the conferees are not satisfied with the degree of information 
provided to date on how past NMD funding increases have been 
spent. Therefore, the conferees direct the Secretary of Defense 
to submit a report to the congressional defense committees by 
February 15, 1998, providing a detailed accounting of how NMD 
funds have been spent since the beginning of fiscal year 1996 
and a detailed plan for the allocation of NMD funding in the 
FYDP. In addition, the Secretary shall provide a detailed 
description of the cost estimating and cost control mechanisms 
in place within DOD for the NMD program, and an assessment of 
whether they are adequate.
      The conferees believe that BMDO should continue to 
understand issues associated with sea-based NMD options. The 
conferees are aware of analysis that shows that a version of 
the Navy Upper Tier TMD system could be employed in an NMD 
role. Therefore, the conferees direct the Director of BMDO to 
submit a report to the congressional defense committees by 
February 15, 1998, describing whether and how the Navy Upper 
Tier program could be upgraded in the future to provide a 
limited NMD capability. The report should address the technical 
issues associated with a sea-based NMD option as well as costs 
associated with such a concept. The report should also address 
whether and, if so, how a sea-based NMD system could be 
integrated into and supplement a ground-based NMD system, 
whether and, if so, how a sea-based system would provide needed 
additional capabilities in support of the requirements for the 
existing NMD program, and whether such a system would comply 
with the ABM Treaty.

             cooperative ballistic missile defense program

      The budget request included $38.7 million for the Arrow 
Continuation Experiments/Arrow Deployability (ACES/ADP) program 
(PE 63872C), $12.9 million for the Unmanned Aerial Vehicle 
Boost Phase Intercept (UAV BPI) program (PE 63870C), and $16.5 
million for the Tactical High Energy Laser (THEL) program (PE 
63308A), all of which are U.S.-Israeli cooperative missile 
defense programs. The budget request included no funding for 
the Russian American Observation Satellite (RAMOS) program and 
the Active Plasma Experiment (APEX) program, both of which are 
cooperative Russian-American programs.
      The House bill would authorize $123.1 million in a new 
BMDO program element (63XXXC) for cooperative international BMD 
programs, including $48.7 million for the Arrow program, an 
increase of $10.0million; the budget request for the UAV BPI 
program; $38.2 million for THEL, of which $15.0 million was a funding 
increase and another $6.7 million was to be funded by BMDO 
administrative accounts; and $30.0 million for RAMOS and APEX.
      The Senate amendment would authorize $53.7 million for 
Arrow in PE 63872C, an increase of $15.0 million; $17.9 million 
for UAV BPI in PE 63870C, an increase of $5.0 million; $51.5 
million for THEL in PE 63308A, an increase of $35.0 million; 
and no funding for RAMOS or APEX.
      The conferees agree to authorize $50.7 million for Arrow 
in PE 63872C, an increase of $10.0 million; $16.4 million for 
UAV BPI in PE 63870C, an increase of $3.5 million; $51.0 
million for THEL in PE 63308A, an increase of $34.5 million; 
$13.0 million for RAMOS in PE 63173C; and $8.0 million for APEX 
in PE 63173C.
      The House recedes on its initiative to create a new 
cooperative BMD PE for fiscal year 1998. A legislative 
provision to create a new cooperative BMD program element for 
fiscal year 1999 is described elsewhere in this report. The 
conferees expect that these programs and other appropriate 
programs will be managed through this new cooperative BMD 
program element.

                           SPACE-BASED LASER

      The budget request included $28.9 million in PE 63173C 
for the Space Based Laser (SBL) program.
      The House bill would authorize the budget request for the 
SBL program.
      The Senate amendment would authorize an increase of 
$118.0 million for the SBL program.
      The conferees agree to authorize an increase of $98.0 
million for the SBL program, for a total of $126.9 million in 
fiscal year 1998.
      The conferees strongly endorse the recommendation of 
BMDO's SBL Independent Review Team (IRT) to proceed on a low 
risk path leading to the launch of an ABM Treaty compliant 
Readiness Demonstrator (RD) in fiscal year 2005. In a letter of 
August 15, 1997 to the Senate Majority Leader, the Secretary of 
Defense confirmed that SBL technology ``has reached a level of 
maturity enabling us to focus on integration issues that could 
lead to a future space demonstration of a sub-scale vehicle.'' 
The conferees believe that such an SBL-RD can be developed and 
launched without violating the ABM Treaty. Proceeding with an 
SBL-RD will not commit the United States to development or 
deployment of an operational SBL system, but will preserve this 
option for future consideration.
      The conferees support the management structure that has 
been established for the SBL program, with the Air Force acting 
as the executive agent for BMDO, but believe that the Air Force 
must program a share of the funding needed to develop and 
launch the SBL-RD. The conferees understand that the Air Force 
leadership is committed to such a cost-sharing arrangement and 
look forward to this commitment being reflected in the fiscal 
year 1999 budget request and in future Air Force Program 
Objective Memorandum (POM) submissions. The conferees also 
understand that the Secretary of Defense is considering options 
for increasing funding for the SBL program in the BMDO budget. 
The conferees recognize that full funding of the SBL-RD program 
will allow a much more efficient and lower risk program. 
Therefore, the conferees strongly urge the Secretary of Defense 
to explore all possible means of including the full SBL-IRT 
recommended funding profile for a fiscal year 2005 launch in 
the combined BMDO and Air Force Future Years Defense Program 
(FYDP), starting with the fiscal year 1999 budget request.
      The conferees direct that all funds authorized to be 
appropriated for the SBL program in fiscal year 1998 be managed 
with the principal objective of developing an SBL-RD capable of 
being launched in fiscal year 2005. The conferees further 
direct that all funds authorized to be appropriated in fiscal 
year 1998 for the SBL program be directly executed by the 
Commander of the Air Force Space and Missile Systems Center 
(SMC).
      The conferees recognize that the Commander of SMC may 
recommend that some limited amount of critical and potentially 
high payoff SBL technology research and development be 
continued even if it does not directly support the SBL-RD. 
However, due to the overarching priority of launching the SBL-
RD in fiscal year 2005, the conferees direct that obligation of 
SBL funds for such activities be limited, and only occur 
following consultation with the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives.
      The conferees direct the Commander of SMC to establish 
promptly an SBL-RD baseline, to include a set of technical 
objectives and requirements, a contracting strategy, a system 
design, a program schedule, and a funding profile that would 
support a launch in fiscal year 2005. The conferees understand 
that the SBL-IRT focused primarily on a single SBL-RD design. 
However, the conferees support the steps taken by the Commander 
of SMC to rapidly assess technical and contractual options that 
may allow a treaty compliant SBL-RD to be developed and 
launched more rapidly and affordably. To ensure that the focus 
of the program remains on a fiscal year 2005 launch, the 
conferees expect to be consulted prior to the adoption of any 
excursions from the SBL-IRT recommended baseline.
      The conferees note that the SBL-IRT concluded that a new 
integrated test facility is an essential and relatively long-
lead element of the SBL-RD effort. Therefore, the conferees 
direct the Commander of SMC to proceed expeditiously in fiscal 
year 1998 with the selection of a site for such a facility. The 
Commander of SMC shall include the requirements, costs, and 
schedule for this facility in the SBL-RD baseline, as well as 
an assessment of the cost effectiveness of continuing to 
operate other SBL test facilities such as the one at 
Capistrano, California.
      The conferees direct the Secretary of Defense to submit a 
report on the status of the SBL-RD baseline, and related 
issues, to the congressional defense committees by March 1, 
1998.
Strategic environmental research and development program
      The budget request included $54.9 million in PE 63716D 
for the Strategic Environmental Research and Development 
Program (SERDP).
      The House bill would authorize an increase of $3.0 
million in PE63716D to pursue projects that focus on the 
elimination of toxic materials and solvents from explosives and other 
energetic materials.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million in PE 63716D for the purpose of developing 
environmentally benign energetic materials.
Advanced electronics technologies
      The budget request included $277.0 million in PE 63739E 
for advanced technology development of a variety of electronics 
technologies.
      The House bill would authorize an increase of $6.0 
million for research in extreme ultraviolet (EUV) lithography 
and fabrication of nanoelectronic structures and an increase of 
$15.0 million for the transition of the x-ray lithography 
program from the Defense Advanced Research Projects Agency 
(DARPA) to the Navy.
      The Senate amendment would authorize an increase of $23.0 
million to continue the proximity x-ray lithography program and 
an increase of $2.0 million to complete the point-source x-ray 
lithography program in fiscal year 1998. The Senate amendment 
would also decrease by $3.0 million the amount of funding 
authorized in project MT-06.
      The conferees agree to authorize an increase of $18.0 
million for the proximity x-ray lithography program and an 
increase of $2.0 million to complete the point-source x-ray 
program in fiscal year 1998. The conferees also agree to 
decrease by $4.0 million the amount authorized for project MT-
06.
      The conferees agree to authorize an increase of $6.0 
million in PE 62712E for EUV lithography as discussed elsewhere 
in the Statement of Managers for the National Defense 
Authorization Act for Fiscal Year 1998.
      The conferees endorse the views expressed in the House 
report (H. Rept. 105-132) regarding the need to ensure a smooth 
transition of the proximity x-ray lithography program from 
DARPA to the Navy and the private sector. The conferees direct, 
therefore, that Naval Air Systems Command be appointed 
executive agent for the program and that all funds expended for 
research and development of proximity x-ray, and related 
technologies, be coordinated through and meet the program 
priorities of the Naval Air Systems Command and the Naval 
Research Laboratory. The conferees urge the Navy to coordinate 
research in cross-cutting technologies between the proximity x-
ray program, and related technologies, and the DARPA sub-tenth 
micron advanced lithography program. The conferees endorse the 
Senate report requirement (S. Rept. 105-29) that the Navy 
prepare and submit a plan to expeditiously complete the 
transition of the program to industry with fieldable 
technology. The plan must be submitted to the congressional 
defense committees no later than 180 days after the date of 
enactment of this Act.
Electronic commerce resource centers
      The budget request included $14.9 million in PE 63753S 
for electronic commerce resource centers (ECRC).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $3.0 
million in PE 63753S for the establishment of a new ECRC.
      The conferees agree to authorize an increase of $6.0 
million in PE 63753S: $3.0 million for the establishment of a 
new center, as discussed in the Senate report (S. Rept. 105-
29); and $3.0 million for the establishment of an additional 
center. The conferees direct that all applicable competitive 
and merit-based procedures be used in the award of contracts, 
grants, or other agreements under this program, and that cost-
sharing requirements for non-federal participants be utilized 
where appropriate.
Land warfare technologies
      The budget request included $82.58 million in PE 63764E 
for land warfare technologies advanced technology development.
      The House bill would authorize an increase of $6.6 
million in PE 63764E for the active structural control program 
and $14.0 million for the DP-2 vectored thrust program. The 
House bill would also authorize a $9.0 million reduction in PE 
63764E.
      The Senate amendment would authorize an increase of $4.4 
million for the active structural control program.
      The conferees agree to authorize an increase of $5.4 
million for the active structural control program. The 
conferees also agree to a decrease of $5.0 million in PE 63764E 
for the small unit operations program.
      The conferees are aware of recent progress in the 
activities related to the DP-2 vectored thrust program. The 
Office of Naval Research has recently sponsored the vectored 
thrust program and prior year funds were transferred from the 
Defense Advanced Research Projects Agency for this purpose. The 
conferees encourage the Navy to reprogram additional funds to 
support this program should initial testing prove successful.
Defense Reconnaissance Support Activities
      The budget request included $49.4 million in PE 35159I 
for Defense Reconnaissance Support Activities.
      The House bill would direct the Department of Defense to 
discontinue, not later than October 1, 1999, the Defense Space 
Reconnaissance Program (DSRP) and close the Defense Space 
Program Office (DSPO).
      The Senate amendment contained no such direction and 
would authorize the budget request.
      The House recedes.
      The conferees agree that there appears to be an overly 
bureaucratic management of space reconnaissance support to 
military operations. The DSPO was established in 1981 to 
provide management support and oversight of programs which 
improve satellite reconnaissance support to the operational 
military commander. DSPO was established as an overt liaison 
between the then unacknowledged National Reconnaissance Office 
(NRO) and the military services. After public acknowledgment of 
the NRO, the Director of the NRO: (1)established direct support 
to military operations as a core function of the Office; and (2) 
created the NRO position of Deputy Director, Military Support to manage 
this function and the DSPO organization.
      The conferees believe the Department needs to review the 
need for continuing the DSPO in light of the NRO's public 
acknowledgment and its stated military support mission. 
Further, the conferees believe that the position of Deputy 
Under Secretary of Defense for Space provides the additional 
civilian oversight necessary to ensure the effective 
application of space support to the military services.
      Therefore, the conferees believe the Secretary of Defense 
should determine whether there is a need to retain the DSPO 
management organization and the DSRP program it manages. The 
conferees note that such a determination could benefit from the 
advice of the Task Force on Defense Reform. The conferees 
direct the Secretary to report to the congressional defense and 
intelligence committees on the results of his determination by 
March 1, 1998.
Special operations tactical systems development
      The budget request included $73.1 million to support 
special operations tactical systems development (PE 116404BB).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $2.7 
million to support special operations tactical systems.
      The conferees agree to authorize the transfer of $36.4 
million from special operations shipbuilding procurement to the 
advanced SEAL delivery system (ASDS) to address funding 
shortfalls. The conferees are concerned about the significant 
problems associated with development and management over the 
life of the ASDS program. The conferees have been notified of 
the program shortfalls and corrective actions implemented by 
the Navy to bring this program back on track. The conferees 
agree to support the Navy request to use available procurement 
funds to support proposed corrective actions and expect the 
Navy to improve its oversight of this important program. The 
conferees are aware that a realignment of funds will be made in 
the fiscal year 1999 budget request to complete ASDS-1. The 
conferees direct that, prior to February 15, 1998, the 
Secretary of the Navy report to the congressional defense 
committees on the total projected costs of the ASDS, the 
estimated date of construction completion, and adjusted plans 
for sea trials and initial operating capability. In addition, 
the report shall include the Future Years Defense Program 
funding for the ASDS program.
      The conferees agree to authorize a total of $109.5 
million in PE 116404BB.
Special operations intelligence systems development
      The budget request included $4.9 million to support 
special operations intelligence systems development.
      The House bill would authorize an increase of $3.0 
million to support the mission familiarization virtual reality 
project and an additional increase of $5.0 million for the 
special operations forces intelligence vehicle.
      The Senate amendment would authorize an increase of $4.0 
million to develop the joint threat warning system.
      The conferees agree to authorize an increase of $6.0 
million for special operations system development. Of this 
amount, $3.0 million is for the special operations forces 
intelligence vehicle and $3.0 million is for the joint threat 
warning system.

                       ITEMS OF SPECIAL INTEREST

Army research institute
      The conferees note the continuing needs of the Army for 
analyses related to personnel recruitment and training as well 
as issues related to gender and racial integration. The 
conferees note the studies in these areas carried out by the 
Army Research Institute and urge the Army to consider its 
requirements for further research before taking action to 
reduce further the activities of the Institute.
Aviation advanced technology
      The budget request included $31.3 million for aviation 
advanced technology in PE 63003A. The conferees encourage the 
Army, with the funds available, to consider exploring the 
potential operational value and key technical issues related to 
an integrated manned and unmanned aerial vehicle scout team.
BOL expendable dispenser system
      The conferees are aware of the important survivability 
enhancement that the BOL expendable dispenser system provides 
our operational F-14 aircraft, and the potential capability 
that the system may provide for other aircraft.
      The Congress provided approximately $18.0 million in 
fiscal year 1997 for final testing and qualification of the BOL 
on the F/A-18C/D aircraft. The conferees understand that 
progress in testing and qualification has been slow, despite 
the Navy's expressed desire to accelerate the program for the 
F/A-18C/D. The conferees direct the Secretary of the Navy to 
report to Congress with the submission of the fiscal year 1999 
budget on the results of the Navy's assessment and intentions 
regarding qualification and potential fielding the BOL system 
on the F/A-18C/D aircraft.
Department of Defense science and technology program
      Today, U.S. military forces have the capabilities to 
deploy anywhere in the world, sustain forward presence 
indefinitely, and win decisively on any battlefield. Those 
capabilities are a direct result of investments in research and 
technology sustained over the last 50 years. Such investments 
have played a crucial role in the development of advanced 
technologies and in the education and training of scientific 
personnel required to support the technological advances 
necessary for maintaining military superiority.
      The conferees note with concern the continuing reduction 
in thefunding in real terms for science and technology programs 
in the Department of Defense, especially in the programs of the 
services. Because military forces will be smaller in the future, 
effective application of technology will be even more critical for 
battlefield superiority. Investments in defense science and technology 
programs should be strengthened in recognition of this reality. The 
conferees urge the Department to include a robust level of funding for 
science and technology programs in the request for fiscal year 1998.
High temperature superconductor power applications
      The conferees understand that the Navy is pursuing large-
scale applications of high temperature superconductors (HTS) 
for electric drive ship propulsion and other applications. The 
conferees also note that the Submarine Technology Assessment 
Panel, commissioned by the Assistant Secretary of the Navy 
(Research, Development and Acquisition), recommended in its 
final report that the Navy focus research and development 
efforts to ensure the maturity of the superconducting 
technology and the incorporation of electric drive into a 
submarine design as soon as feasible. In light of the 
initiation of the Navy development and production of the New 
Attack submarine, SC-21 and CV(X), and the progress realized by 
the commercial sector in the development and application of 
this technology and its potential benefits, the conferees 
encourage the Navy to consider this technology for widespread 
use in propulsion and auxiliary equipment. The conferees direct 
the Secretary of the Navy to submit a report to the 
congressional defense committees, no later than March 1, 1998, 
that describes the results of the tests conducted on the 
prototype HTS motor.
Improving collaboration between the Department of Defense and the 
        Department of Energy laboratories
      The conferees endorse the direction given on pages 425 
and 426 of the Senate report (S. Rept. 105-29) regarding the 
establishment of a pilot program proposal for direct 
collaboration between the Department of Defense and the 
Department of Energy laboratories and sites. However, in order 
to provide for a more focused program, the conferees direct 
that the Under Secretary of Defense for Acquisition and 
Technology need only work in consultation with the Assistant 
Secretary of Energy for Defense Programs in preparing the pilot 
proposal.
Interferometric synthetic aperture radar
      Forward deployed U.S. armed forces have a need for up-to-
date and highly accurate maps that provide three-dimensional 
location of targets, including altitude, latitude, and 
longitude, and for reconstruction of terrain in a three-
dimensional setting for planning combat missions. The conferees 
understand that an airborne interferometric synthetic aperture 
radar (IFSAR) has the potential to provide imagery of one foot 
resolution and digital terrain elevation data (DTED) at DTED 
level 4.
      The conferees understand that the Army and the Defense 
Advanced Research Projects Agency recently demonstrated an 
airborne IFSAR during operations in support of U.S. ground 
forces in Bosnia. The test system is relatively small and for 
test purposes was flown on a business jet, which proved 
satisfactory in Bosnia. To operate in a major regional 
contingency, however, U.S. armed forces would require a larger, 
more capable system, flying at higher altitudes.
      The conferees direct the Secretary of Defense and the 
Intelligence community to study the costs, feasibility, and 
potential capability gains of placing an IFSAR on a U-2 or high 
altitude endurance unmanned aerial vehicle, and to report the 
results of this analysis to the congressional defense 
committees with the submission of the fiscal year 1998 budget 
request.
Naval biodynamics laboratory data bank
      For nearly thirty years, the NBDL focused on the 
intensive test, study, and analysis of the human body's 
response to the trauma of crashes, and developed a national 
data bank of collective human crash response information based 
on approximately 3,500 crash tests using live human subjects. 
In 1996, the NBDL ceased operations as a result of previous 
decisions to close the laboratory, but was not able to 
consolidate and safely store its research information in a 
consistent, useful data bank format. The conferees believe that 
the effort spent in amassing the unique human response data by 
the NBDL should not be lost. Accordingly, the conferees direct 
the Secretary of the Navy to develop a plan that establishes a 
national crash survival data bank that will safeguard the 
integrity of the data gathered by the NBDL and to submit a 
report on the plan and the funding required to establish the 
data bank with the fiscal year 1999 Department of Defense 
budget request.
Strategic systems industrial capabilities
      The Department of Defense has consistently highlighted 
the need to maintain certain industrial base skills and 
technologies unique to strategic programs. The conferees 
support the efforts that the Department and the services have 
made to ensure that these technologies and skills are 
maintained for future uses. The conferees support Air Force 
efforts with respect to specialized materials, such as 2-2-3 
carbon/carbon, that may be needed for future space and other 
applications. The conferees urge the Secretary to review the 
Future Years Defense Program to ensure that Strategic Systems 
specialized industrial base issues are adequately funded.
Telemedicine
      The conferees have a continuing interest in telemedicine 
and in the promise that the application of telemedicine 
technology holds for improvements in the health care of service 
members on the battlefield, at sea, and in military and 
civilian health care facilities. The conferees are aware that 
the General Accounting Office (GAO) in itsFebruary 1997 report 
``Telemedicine: Federal Strategy is Needed to Guide Investments'' 
concluded that telemedicine has the potential to revolutionize the way 
health care is delivered and that recent increased interest in 
telemedicine technology has resulted in widespread applications 
throughout the United States. However, the GAO also concluded that no 
overarching, government-wide strategy exists to ensure that the most is 
gained from federal telemedicine efforts. The conferees believe that 
because the Department of Defense (DOD) is one of the major federal 
investors in telemedicine and manages one of the nation's largest 
health care systems, it would be in a good position to help forge an 
overall telemedicine strategy. A first step in this direction would be 
the development of a department-wide telemedicine strategy.
      The conferees strongly recommend that the Secretary of 
Defense develop and submit to the congressional defense 
committees by March 31, 1998, an overarching telemedicine 
research and development and operation strategy. The strategy 
should clearly define the scope of telemedicine in the 
Department, establish DOD-wide goals and objectives, and 
identify actions and appropriate milestones for achieving them; 
prioritize and target near- and long-term investments, 
especially for goals related to combat casualty care and 
operations other than war; and clarify the roles of DOD 
oversight organizations. The conferees also recommend that the 
Secretary coordinate with the Joint Working Group on 
Telemedicine in the development of national goals and 
objectives for telemedicine.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

Dual-use technology program (sec. 203)
      The House bill contained a provision (sec. 203) that 
would direct the Department of Defense to fund the dual-use 
science and technology program in fiscal year 1998 as a 
percentage of the science and technology program of each of the 
services.
      The Senate amendment contained a provision (sec. 216) 
that would establish a set of goals with increasing levels of 
funding for new starts in the applied research accounts of the 
military services to be devoted to dual-use projects in each of 
fiscal years 1998, 1999, and 2000. Under the provision, the 
dual-use projects entered into by the military services would 
have to require a minimum cost-share of 50 percent from non-
federal participants in order to count toward meeting the 
specified goal. The provision would also assign oversight 
responsibility for implementation of dual-use technologies to 
an official who would report directly to the Under Secretary of 
Defense for Acquisition and Technology.
      The House recedes with an amendment that would increase 
the goals set in the Senate provision and impose the 
percentages to the entire applied research accounts of the 
military services rather than new starts within those accounts 
for each of fiscal years 1998, 1999, 2000, and 2001. The 
provision would also place restrictions on the proportion of 
in-kind contribution in the non-federal cost-share for dual-use 
projects that would be applied toward meeting the goals. 
Finally the provision would specifically authorize $50.0 
million for the Commercial Operations and Support Initiative 
(COSSI) and $75.0 million for the dual-use science and 
technology projects in fiscal year 1998. The conferees direct 
that the funds authorized for the COSSI program in fiscal year 
1998 be used only to complete projects under existing 
agreements and that no new solicitation under the COSSI program 
be initiated until fiscal year 1999.
      The conferees direct the Secretary of Defense to submit 
to the congressional defense committees, at the time of the 
budget request for each of the fiscal years for which a goal 
applies under the provision, a report on the plans for the 
program for the fiscal year of the request. The report should 
provide sufficient detail with respect to funding allocations, 
priorities, and technology development goals for both the 
science and technology program and the COSSI program to allow 
Congress to make an informed decision on the request.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Manufacturing technology program (sec. 211)
      The House bill contained a provision (sec. 211) that 
would amend section 2525 of title 10, United States Code, 
through fiscal year 2000, to establish a funding requirement 
for the manufacturing technology (MANTECH) program of 0.25 
percent of the amount available for demonstration and 
validation, engineering and manufacturing development, 
operational system development, and procurement programs of the 
Army, the Navy, the Air Force, and Defense Agencies, or the 
amount authorized by law for manufacturing technology projects 
of the military departments and defense agencies, whichever 
amount is greater. The provision would also require an annual 
report to Congress through fiscal year 2000.
      The Senate amendment contained a provision (sec. 231) 
that would amend section 2525(c)(2) of title 10, United States 
Code, to clarify the rationale for the requirement that the 
Department seek the participation of manufacturers of 
manufacturing equipment in the projects under the MANTECH 
program.
      The House recedes with an amendment that would include 
the requirement for the Secretary of Defense to prepare a five 
year plan for the MANTECH program that establishes 
manufacturing technology goals, milestones, and priorities, the 
investment strategy for the program, annual program objectives, 
and annual funding for the program by defense agencies and the 
military departments.
      The conferees strongly endorse the Department of Defense 
manufacturing technology program. The program provides ``seed 
funding'' for the development of moderate to high risk 
material, process, and equipment technology to enable 
production of advanced, high quality weapons systems with 
shorter lead times and reduced acquisition costs. The conferees 
also endorse the need to stabilize the funding level for the 
MANTECH program and eliminate the uncertainty in annual 
fundingthat has reduced the program's effectiveness and efficiency. The 
conferees believe that the program's objectives, investment strategy, 
and funding level must be closely tied to the manufacturing technology 
and process requirements of the various Defense acquisition programs. 
To achieve this goal and to maintain the Department of Defense MANTECH 
program at the funding level needed to assure the availability of 
advanced manufacturing technology and processes, the conferees 
recommend that the Secretary establish a funding target for the program 
of at least 0.25 percent of the amount programmed by each of the 
military departments and defense agencies for their demonstration and 
validation, engineering and manufacturing development, operational 
system development, and procurement programs.
Report on operational field assessments program (sec. 212)
      The House bill contained a provision (sec. 220) that 
would require the Secretary of Defense to submit to the 
Congress no later than March 30, 1998 a report on the 
operational field assessments program, including a description 
of future plans for the program and funding requirements for 
planned activities under the program.
      The Senate amendment contained no similar provision, but 
authorized an increase of $8.0 million in PE 65118D for 
operational field assessments in fiscal year 1998.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to report to the Congress on the 
manner in which the operational field assessment program plan 
will ensure responsiveness to the mission needs of the 
commanders of the unified combatant commands. The conferees 
agree to authorize an increase of $4.0 million in PE 65118D to 
support operational field assessments in fiscal year 1998.
Joint Strike Fighter Program (sec. 213)
      The Senate amendment contained a provision (sec. 211) 
that would require the Secretary of Defense to submit a report 
to the congressional defense committees on the options for the 
sequence in which the variants of the Joint Strike Fighter 
(JSF) are to be produced and fielded.
      The House bill contained no similar provision.
      The House recedes with an amendment that would include a 
requirement for certification that the JSF program contains 
sufficient funding to carry out an alternate engine program 
that includes flight qualification of an alternate engine.
Kinetic energy tactical anti-satellite technology program (sec. 214)
      The Senate amendment contained a provision (sec. 218) 
that would authorize $80.0 million in PE 63892D to continue the 
Kinetic Energy Tactical Anti-Satellite (KE-ASAT) program in 
fiscal year 1998. The provision would also prohibit the 
obligation of funds in PE 65104D, relating to technical studies 
and analyses, until the funds appropriated for the KE-ASAT 
program for fiscal year 1998 have been released to the KE-ASAT 
program manager.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
$37.5 million for the KE-ASAT program for fiscal year 1998.
      The conferees understand that the administration 
maintains that there is no military requirement for the KE-ASAT 
program and that the Department of Defense does not support it. 
However, there appears to be some confusion regarding the 
Department's support for some degree of KE-ASAT technology 
development. The Department of Defense's recent Space Control 
Architecture study appears to endorse continued development of 
KE-ASAT technology, and the National Space Policy appears to 
call for the development of active counter-satellite 
capabilities.
      In light of these factors, the conferees direct the 
Secretary of Defense to submit a report to the congressional 
defense committees by February 15, 1998, to include the 
following: (1) a determination as to whether the National Space 
Policy and DOD Space Policy establish requirements for the 
development of active counter-satellite capabilities; (2) a 
summary of the DOD Space Control Architecture study, including 
any updates to the study, and the study's findings and 
recommendations regarding the KE-ASAT program; and (3) a 
determination by the Secretary as to whether the Department of 
Defense should develop active counter-satellite capabilities 
and, if so, whether the Secretary intends to sustain some level 
of KE-ASAT technology development. The report shall be 
submitted in an unclassified form and, if necessary, in a 
classified form.
      The conferees note that fiscal year 1997 funds remain 
available for the KE-ASAT program. The conferees continue to 
support the development of KE-ASAT technology.
Micro-satellite technology development program (sec. 215)
      The Senate amendment contained a provision (sec. 219) 
that would authorize $50.0 million in PE 63401F for the 
Clementine 2 program. The provision would also prohibit the 
obligation of more than $35.0 million of funds authorized in PE 
64480F for the Global Positioning System Block IIF satellite 
system until the Secretary of Defense certifies to Congress 
that the Secretary has made available for obligation funds 
appropriated for fiscal year 1998 for the Clementine 2 Micro-
Satellite program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require: 
(1) that the Clementine 2 program be restructured into a micro-
satellite technology development program that supports a range 
of space mission areas; and (2) the Secretary of Defense to 
provide a report on the restructured micro-satellite program to 
the congressional defense committees.
      The conferees note that the Air Force and U.S. Space 
Command have supported micro-satellite development activities 
and that the Air Force has established and provided a limited 
amount of funding for such a program in the Future Years 
Defense Program. The conferees continue to support innovative 
technology demonstrations designed to test key technologies in 
space and urge the Secretary of Defense toensure that the 
restructured micro-satellite technology program continues such efforts. 
The conferees note that the Air Force, in conjunction with the office 
of the Deputy Undersecretary of Defense for Space, has developed a 
range of options for such a program. The conferees believe that funds 
appropriated for the Clementine 2 program in prior years should be used 
to support the restructured micro-satellite program.
High altitude endurance unmanned vehicle program (sec. 216)
      The Senate amendment contained a provision (sec. 213) 
that would impose a cost cap on the High Altitude Endurance 
Unmanned Aerial Vehicle (HAE UAV) program at the levels 
requested in the fiscal year 1998 budget request.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the reporting requirement of the provisions and the 
certification requirements for the program.
F-22 aircraft program (sec. 217)
      The Senate amendment contained a provision (sec. 212) 
that would impose cost caps on both the total cost of 
engineering and manufacturing development (EMD) and the total 
cost of production of the F-22. Additionally, the Senate 
amendment would require an annual report by the Comptroller 
General that would assess the progress of EMD and its prospect 
of completion under the cost cap. The annual report would be 
required until EMD is complete. Finally, the Senate amendment 
would limit the obligation of funds authorized to be 
appropriated each fiscal year to 90 percent until the 
Comptroller General's annual report is submitted.
      The House bill contained no similar provision.
      The House recedes with an amendment that would allow 
adjustments to the cost caps for economic inflation and 
compliance with laws enacted after September 30, 1997.

             Subtitle C--Ballistic Missile Defense Programs

National Missile Defense Program (sec. 231)
       The Senate amendment contained a provision (sec. 225) 
that would require the Secretary of Defense to structure the 
National Missile Defense (NMD) program to support an integrated 
NMD system test in fiscal year 1999. The provision would also 
require the Secretary of Defense to prepare a plan for the 
development and deployment of an NMD system that could achieve 
initial operational capability in fiscal year 2003. Finally, 
the provision would authorize $978.1 million for NMD in fiscal 
year 1998.
      The House bill contained no similar provision.
      The House recedes.
Budgetary treatment of amounts for procurement for ballistic missile 
        defense programs (sec. 232)
      The House bill contained a provision (sec. 231) that 
would require future budget requests for procurement of the 
National Missile Defense program and for core theater missile 
defense programs to be within the accounts of the Ballistic 
Missile Defense Organization (BMDO) rather than in the accounts 
of the military services.
      The Senate amendment contained a provision (sec. 226) 
that would direct the Secretary of Defense to transfer 
ballistic missile defense program procurement funds previously 
managed by the Ballistic Missile Defense Organization from 
military service accounts back to their original BMDO 
procurement accounts.
      The Senate recedes with an amendment that combines the 
House and the Senate provisions.
Cooperative Ballistic Missile Defense program (sec. 233)
      The House bill contained a provision (sec. 232) that 
would establish a Cooperative Ballistic Missile Defense Program 
within the Ballistic Missile Defense Organization (BMDO), to 
support on-going and future technical and analytical 
cooperative efforts between the United States and other nations 
that contribute to U.S. missile defense capabilities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would provide 
the Secretary of Defense discretion to exclude certain 
ballistic missile defense acquisition programs from the 
cooperative ballistic missile defense program element. The 
conferees understand that BMDO has developed plans for the 
creation of a dedicated cooperative ballistic missile defense 
program element and look forward to this new program element in 
the fiscal year 1999 budget request.
Annual report on the threat posed to the United States by weapons of 
        mass destruction, ballistic missiles, and cruise missiles (sec. 
        234)
      The House bill contained a provision (sec. 234) that 
would direct the Secretary of Defense, in consultation with the 
Director of Central Intelligence, to prepare and submit to 
Congress by January 30 of each year, a report on threats posed 
to the United States and its allies by cruise missiles, 
ballistic missiles, and weapons of mass destruction, and the 
proliferation of such technologies.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Director of Ballistic Missile Defense Organization (sec. 235)
      The House bill contained a provision (sec. 235) that 
would require that the Director of the Ballistic Missile 
Defense Organization (BMDO) carry the grade of lieutenant 
general or general or, in the case of an officer of the Navy, 
vice admiral or admiral. It would also require that the 
Director of BMDO report directly to the Secretary of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit 
the appointment of a civilian official of equivalent grade as 
Director of BMDO and eliminate the requirement that the 
Director report directly to the Secretary of Defense.
      The conferees direct the Secretary of Defense to ensure 
that the director of BMDO is accorded full access to the 
Secretary and all other senior Department of Defense officials 
on matters pertaining to the management of ballistic missile 
defense programs for which the director has responsibility.
Repeal of required deployment dates for core theater missile defense 
        programs (sec. 236)
      The House bill contained a provision (sec. 233) that 
would amend section 234(a) of the Ballistic Missile Defense Act 
of 1995 by eliminating deployment dates for certain core 
theater missile defense (TMD) programs and modifying the 
deployment date for the Theater High Altitude Area Defense 
(THAAD) program. The provision also made technical and 
conforming changes to section 234(a).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
all deployment dates for core TMD programs from section 234(a) 
of the Ballistic Missile Defense Act of 1995.
      The conferees continue to support the earliest possible 
deployment of effective theater missile defenses, consistent 
with acceptable program risk, as a matter of high national 
priority. The conferees believe that the mandated deployment 
dates made clear the high priority attached by Congress to all 
four core theater missile defense programs. These dates and 
congressional funding increases have propelled the Navy Area 
Theater Ballistic Missile Defense program into engineering and 
manufacturing development and the Patriot Advanced Capability-3 
(PAC-3) program into procurement. Congressionally mandated 
deployment dates were also motivated by the Department of 
Defense's failure to commit firmly to a deployment schedule for 
the Navy Theater Wide and THAAD programs that would result in 
deployment of these vital capabilities at the earliest 
opportunity consistent with acceptable technical and program 
risk.
      Henceforth, the conferees anticipate that a statement of 
congressional intent concerning the management of the core TMD 
programs will be issued annually. The conferees believe that 
the flexibility of annual statements will allow for rigorous 
and effective congressional oversight.

                       Subtitle D--Other Matters

Restructuring of National Oceanographic Partnership Program 
        organization (sec. 241)
       In signing the National Defense Authorization Act for 
Fiscal Year 1997, the President issued a statement that the 
statute's method for the appointment of certain members of the 
National Ocean Leadership Council would violate the 
Appointments Clause of the Constitution. Although the statement 
provided that the Council should not exercise significant 
governmental authority, the administration allowed the Council 
to be convened with the 12 members whose appointment did not 
raise any constitutional issue, pending the enactment of 
corrective legislation.
      The House bill contained a provision (sec. 214) that 
would amend section 7902 of title 10, United States Code, to 
provide that the President, or his designee, shall appoint 
members of the National Ocean Research Council who are not 
already government officers, to represent the views of the 
ocean industries, state governments, and academia, and such 
other views as the President considers appropriate.
      The Senate amendment contained a provision (sec 234) that 
would amend section 7902(b) to revise the membership of the 
Council by removing those members whose appointment would raise 
constitutional questions. The National Ocean Leadership Council 
would remain as currently established by the administration, 
with members representing the 12 Federal agencies with 
significant oceanographic interest. The provision also 
recommended that the membership of the Council's Ocean Research 
Advisory Panel be expanded to include representatives from the 
National Academy of Sciences, the National Academy of 
Engineering, and the Institute of Medicine, as well as 
government, academia, and the oceans industry.
      The House recedes with an amendment that would clarify 
the role of the Ocean Research Advisory Panel with regard to 
membership and responsibilities.
Maintenance and repair of real property at Air Force installations 
        (sec. 242)
      The House bill contained a provision (sec. 215) that 
would amend chapter 949 of title 10, United States Code, by 
adding a new provision to permit the use of both research, 
development, test, and evaluation funds and operations and 
maintenance funds for maintenance and repair of real property 
at Air Force installations.
      The Senate amendment contained no similar provision.
       The Senate recedes.
Expansion of eligibility for the defense experimental program to 
        stimulate competitive research (sec. 243)
      The House bill contained a provision (sec. 216) that 
would amend section 257 of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337) to ensure the 
eligibility of the Commonwealth of Puerto Rico and other U.S. 
territories to participate in the Defense Experimental Program 
to Stimulate Competitive Research.
      The Senate amendment contained a similar provision (sec. 
233).
      The House recedes.
Bioassay testing of veterans exposed to ionizing radiation during 
        military service (sec. 244)
      The House bill contained a provision (sec. 217) that 
would authorize $300,000 for the Nuclear Test Personnel Program 
conducted by the Defense Special Weapons Agency.
      The Senate amendment contained a similar provision (sec. 
220) that would authorize $300,000 for the Nuclear Test 
Personnel Program conducted by the Defense Special Weapons 
Agency for the third phase of bioassay testing of radiation-
exposed veterans who participated in radiation-risk activities, 
and would direct the collection of samples by the appropriate 
department of agency appropriate agency, and the transfer under 
appropriate chain of custody to the Brookhaven National 
Laboratory.
      The House recedes with an amendment that would authorize 
$300,000 for the Nuclear Test Personnel Program from funds 
authorized for the Defense Special Weapons Agency to conduct 
the third phase of bioassay testing of veterans exposed to 
ionzing radiation during their military service.
       The conferees agree that neither the Brookhaven National 
Laboratory, nor the Defense Special Weapons Agency (DSWA), have 
the capability to collect the samples from the veterans who 
participated in the United States atmospheric nuclear testing 
program or the occupation of Hiroshima and Nagasaki, Japan. 
Therefore, the conferees direct the appropriate department or 
agency, with access to the veterans who participated in these 
activities, to collect the required bioassay samples and 
transfer them to Brookhaven National Laboratory under the 
appropriate chain of custody.
Sense of Congress regarding Comanche program (sec. 245)
      The House bill contained a provision (sec. 218) that 
would express support for Comanche program technology transfer 
and acquisition efforts.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would express 
the sense of Congress that the Department of Defense should 
evaluate potential technology transfer and acquisition 
initiatives within the Army Comanche program that have the 
potential to increase the efficiency of the program or reduce 
risk. If the Department identifies an initiative with merit, 
the conferees expect that funding will be identified for the 
initiative in the future years defense program.

                   Legislative Provisions Not Adopted

Strategic environmental research and development program
      The House bill contained a provision (sec. 212) that 
would direct the Secretary of Defense to submit a report on the 
Strategic Environmental Research and Development Program 
(SERDP) by February 28, 1998. In relation to each SERDP 
project, the report would specify the following: (1) defense-
unique and mission-relevant aspects; and (2) certify that it 
does not duplicate other environmental research, development, 
and demonstration efforts of other government entities 
ororganizations.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees have been advised by the Department of 
Defense that technologies funded through SERDP are carefully 
screened to identify projects that may duplicate efforts within 
the Department. The conferees direct the Department of Defense 
to ensure that every effort is made to avoid redundant research 
and development efforts in the area of environmental 
technology.
Tactical unmanned aerial vehicles
      The House bill contained a provision (sec. 213) that 
would prohibit the obligation of funds for the Outrider 
Advanced Concept Technology Demonstration (ACTD) program.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees are disappointed with the progress of the 
Outrider ACTD program to date. The conferees believe that the 
program has suffered irreparably from unstable and ambiguous 
joint requirements and note that the program appears to be on a 
path to failure with respect to its operational capabilities. 
In the future, the conferees will look less favorably on ACTD 
programs that are not limited demonstrations of mature 
technologies, but rather thinly veiled attempts to evade the 
regular order of the acquisition process.
      Accordingly, the conferees agree to authorize $45.0 
million for completion of the Outrider ACTD development and 
user activities, but not procurement of operational Outrider 
systems. Moreover, the conferees agree to authorize these 
Outrider ACTD activities in PE 63003A, Advanced Aviation 
Technology program.
Land attack standard missile
      The House bill contained a provision (sec. 219) that 
would authorize an increase of $10.0 million increase in PE 
63795N for flight test demonstration and risk reduction 
activities for the Land Attack Standard Missile. In addition, 
the provision would decrease PE 63217N (Air Systems and Weapons 
Advance Technology) by $5.0 million and PE 63508N (Ship Hull 
Mechanical and Electrical Technology) by $5.0 million.
      The Senate amendment contained no similar provision.
      The House recedes. The conferees agree to authorize an 
increase of $3.0 million in PE 63795N for the Land Attack 
Standard Missile as discussed elsewhere in this report.
Tactical High Energy Laser program
      The House bill contained a provision (sec. 236) that 
would transfer the Tactical High Energy Laser (THEL) program 
from the Department of the Army to the Ballistic Missile 
Defense Organization, and authorize $38.2 million for THEL in 
fiscal year 1998.
      The Senate amendment contained no similar provision.
      The House recedes. Fiscal year 1998 funding for THEL is 
addressed elsewhere in this report.
Advanced anti-radiation guided missile program
      The Senate amendment contained a provision (sec. 214) 
that would authorize the Secretary of the Navy to use up to 
$25.0 million of the amount authorized for fiscal year 1997 for 
the advanced anti-radiation guided missile (AARGM) program to 
fund fiscal year 1998 research development, test, and 
evaluation programs of the Navy that have a higher priority.
      The House bill contained no similar provision, but would 
authorize an increase of $35.0 million in PE 25601N to continue 
the ARRGM program.
      The Senate recedes.
      The conferees share the concerns expressed in the House 
report (H. Rept. 105-132) that the high degree of concurrency 
in the schedule for development and demonstration of the AARGM 
results in increased risk to the program and that a more 
sequential development program may be warranted. Accordingly, 
the conferees reiterate the guidance in the House report (H. 
Rept. 105-132) that the Secretary of the Navy conduct an 
independent assessment of the program plan, development and 
demonstration schedule, program execution, technical 
performance, and program risk. The Secretary shall report the 
results of the assessment to the congressional defense 
committees by March 31, 1998. The report should also include 
the Secretary's recommendations regarding the objectives of the 
program, revisions to the program schedule, and the funding 
required to complete the program.
Federally funded research and development centers
      The Senate amendment contained a provision (sec. 215) 
that would prohibit the Department of Defense (DOD) from 
funding more than 6,206 staff years of technical effort for 
federally funded research and development centers (FFRDC's) out 
of the funds authorized to be appropriated for the DOD for 
fiscal year 1998.
      The House bill contained no similar provision.
      The Senate recedes.
Department of Defense/Veterans' Administration cooperative research 
        program
      The Senate amendment contained a provision (sec. 221) 
that would authorize $15.0 million for the Department of 
Defense/Veterans Administration (DOD/VA) cooperative research 
program from the funds authorized to be appropriated for 
research, development, test, and evaluation for defense 
agencies in fiscal year 1998.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize $15.0 million in PE 
63738D for the Cooperative DOD/VA Medical Research Program of 
which $4.5 million is authorized for the Persian Gulf illness 
clinical trials program discussed on page 161 of the House 
report (H. Rept. 105-132). The conferees direct that all 
applicable competitive, merit-basedprocedures be used in the 
award of contracts, grants or other agreements under the Cooperative 
DOD/VA Medical Research Program. The conferees further direct the 
Secretary of Defense to ensure that any Department of Defense funds 
authorized for fiscal year 1998 program be expended for research on the 
medical problems of men and women associated with military service.
Multitechnology integration in mixed-mode electronics
      The Senate amendment contained a provision (sec. 222) 
that would authorize an increase of $7.0 million for 
multitechnology integration in mixed-mode electronics (MIME) 
research. The Senate provision would reduce by an equal amount 
the funds authorized to be appropriated for procurement for the 
reserve components of the armed services and made available for 
special equipment for user testing.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize an increase of $7.0 
million in PE 62712E for applied research in MIME technology, 
as discussed elsewhere in this report.
Facial recognition technology program
      The Senate amendment contained a provision (sec. 223) 
that would authorize an increase of $5.0 million for a facial 
recognition technology program.
      The House bill contained no similar provision, but would 
authorize $5.0 million for a facial recognition technology 
program in the counterterror technical support program (PE 
63122D).
      The Senate recedes. The conferees agree to authorize $3.0 
million for a facial recognition technology program in the 
defense tactical technology program (PE 62702E).
Explosives demilitarization technology
      The Senate amendment included a provision (sec. 235) that 
would direct the Secretary of Defense to conduct an explosive 
munitions demilitarization demonstration program, and using 
competitive procedures, conduct a demonstration using an 
existing, commercially available blast chamber technology as an 
alternative to open burning, open pit detonation of munitions; 
require the Secretary of Defense to submit to Congress, along 
with the fiscal year 2000 budget, a report on the results of 
the demonstration program and assessment of the relative 
benefits of the blast chamber technology with regard to levels 
of emissions and noise, and a cost benefit analysis of this 
technology. The provision would increase the budget request for 
the explosives demilitarization technology program by $6.0 
million for the demonstration program and reduce by $6.0 
million the budget request for the Army account for special 
equipment for user testing.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agreed to authorize an increase of $4.0 
million for the munitions standardization, effectiveness and 
safety program (PE 65805A) from which a demonstration program 
utilizing commercially available blast chamber technology may 
be conducted, and is described elsewhere in this title.

                  Title III--Operation and Maintenance

Overview
      The budget request for fiscal year 1998 contained an 
authorization of $93,195.7 million for Operation and 
Maintenance in the Department of Defense and $2,163.4 for 
Working Capital Fund Accounts in fiscal year 1998. The House 
bill would authorize $92,616.2 million for Operation and 
Maintenance and $2,153.6 for Working Capital Fund Accounts. The 
Senate amendment would authorize $93,292.9 million for 
Operation and Maintenance and $1,488.1 for Working Capital Fund 
Accounts. The conferees recommended an authorization of 
$93,794.2 million for Operation and Maintenance and $2,031.9 
for Working Capital Fund Accounts for fiscal year 1998. Unless 
noted explicitly in the statement of managers, all changes are 
made without prejudice.


                       ITEMS OF SPECIAL INTEREST

Arms control implementation
      The budget request included $315.1 million for arms 
control implementation programs in the military services and 
the Department of Defense. This request is based on anticipated 
dates of implementation of the various arms control treaties.
      The House bill would authorize a decrease of $25.5 
million, which would result in an $11.2 million reduction to 
the On Site Inspection Agency (OSIA) operations and maintenance 
account and a $14.3 million reduction to the Defense Special 
Weapons Agency (DSWA) verification demonstration technology 
program (PE 63711H). These reductions were due to slippage in 
the entry into force of the Open Skies Treaty, the Strategic 
Arms Reduction Treaty II, the Comprehensive Test Ban Treaty 
(CTBT), and non-implementation of the Bilateral Destruction 
Agreement (BDA).
      The Senate amendment would authorize a decrease of $20.0 
million, which would result in a $10.0 million reduction to the 
OSIA operations and maintenance account and a $10.0 million 
reduction to the DSWA verification demonstration technology 
program.
      The conferees agree to authorize a decrease of $25.5 
million to the budget request for arms control implementation 
for fiscal year 1998, as follows: $11.2 million for the OSIA 
operations and maintenance account; and $14.3 million for the 
DSWA verification technology demonstration program (PE 63711H).
      The conferees direct the Department of Defense to provide 
the congressional defense committees with a program plan for 
the nuclear control technology research program (PE 63711H) in 
support of the CTBT, and include the estimated costs. The 
Department should also include in the report its assessment of 
recommendations by the National Research Council on research 
deemed to be necessary to meet nuclear test monitoring goals, 
and how the nuclear arms control technology activity meets 
congressionally mandated objectives. The conferees are willing 
to provide adequate funding for programs that would enable the 
United States to independently monitor and detect nuclear test 
activities worldwide and fulfill its obligations under a 
comprehensive test ban, if and when that treaty enters into 
force, and do not wish the funding reduction to nuclear control 
technology activities (PE 63711H) to be misconstrued.
National Defense Sealift Fund (NDSF)
      The budget request included $812.9 million in the 
National Defense Sealift Fund (NDSF) for sealift acquisition. 
Of this amount, $581.3 million would be for the procurement of 
two large medium speed roll-on/roll-off (LMSR) strategic 
sealift ships, $131.5 million for resolution of cost growth 
that has occurred on LMSRs authorized in prior years, $70.0 
million for advance procurement of components for an LMSR that 
is planned for authorization in fiscal year 1999, and $30.1 
million for completion of ships authorized in prior years.
      The House bill would authorize a decrease of $9.8 
million.
      The Senate amendment would authorize a decrease of $651.3 
million for procurement and for advance procurement of LMSRs. 
The Senate amendment would also authorize a decrease of $25.0 
million because of contract savings in previously authorized 
and appropriated NDSF programs. In addition, the Senate 
amendment would authorize an increase of $1.0 million to 
provide support for a Department of Defense study of future 
requirements and specifications for maritime prepositioning 
force recapitalization.
      The conferees agree to authorize $581.3 million for 
procurement of two LMSRs, $70.0 for advance procurement, and 
$30.1 million for completion of prior year ships. The conferees 
further agree to a decrease of $131.5 million which includes a 
decrease of $131.0 million for prior year cost growth, which 
the conferees believe can be deferred until fiscal year 1999; 
and a decrease of $0.5 million as a result of fiscal year 1997 
contract savings.
National imagery and mapping agency
      The budget request included $680.3 million in Operations 
and Maintenance, Defensewide, for the Joint Military 
Intelligence Program portion of the National Imagery and 
Mapping Agency (NIMA).
      The House bill would authorize the following: (1) a 
reduction of $30.0 million for production and customer support 
on the grounds that migration to the Digital Processing System 
should have resulted in significant reductions in operations 
and maintenance costs; (2) a reduction of $10.0 million for 
mission support in anticipation of significant cost reductions 
as a result of various mission and organization consolidations; 
(3) a reduction of $15.0 million to accelerate the downsizing 
of NIMA's personnel consistent with the Digital Processing 
System phase-out; and (4) a reduction of $23.2 million for 
continued research and development efforts for an 
interferometric synthetic aperture radar (IFSAR) mission on 
board the Space Shuttle to collect Digital Terrain Elevation 
Data (DTED) level 2 information for mapping because of a belief 
that other, more cost-effective, commercial alternatives to the 
IFSAR mission exist.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the following 
reductions, as reflected in the Classified and Intelligence 
line within Operations and Maintenance, Defensewide: $35.0 
million in production; $11.0 million in mission support; $15.0 
million in management and customer support; and $3.2 million 
for the Shuttle IFSAR mission, with the remaining funding to be 
used to fund commercial alternatives to the shuttle DTED 
mapping mission if the NIMA Director determines that such 
alternatives are cost- and mission-effective, or to continue 
preparation for the shuttle mission. The conferees also agree 
to authorize the budget request for NIMA civilian personnel. 
The conferees direct the Director of NIMA to submit the 
personnel plan specified in the House report (H. Rept. 105-
132).
Travel re-engineering
      The House report (H. Rept. 105-132), which raised 
concerns over the compliance by the Department of Defense with 
section 356 of the National Defense Authorization Act for 
Fiscal Year 1996, would direct the Secretary of Defense to 
comply with the reporting requirement in that section, and 
would prohibit the Department from processing a Request for 
Proposal. The conferees are aware that the Secretary of Defense 
has now complied with the reporting requirement, and note that 
the Request for Proposal has been released.
      The House report also expressed concern about the impact 
of any new system on small and medium-sized travel agencies and 
the possible restriction of fair competition in the travel 
industry. The challenge facing the Department is to automate a 
largely unautomated and expensive travel system. The conferees 
expect the Secretary of Defense to ensure that this effort to 
automate the system will be interoperable with existing 
commercial systems to ensure that small and medium-sized travel 
agencies continue to have an equal opportunity to compete to 
provide actual travel services, and will incorporate the best 
business practices of the commercial travel industry. According 
to the schedule provided by the Department of Defense, system 
testing in Region 6 will occur during the second quarter of 
fiscal year 1998.
      The conferees direct the Secretary of Defense to report 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives, 
not later than May 1, 1998, the lessons learned as a result of 
establishing the Defense Travel System in Region 6. This report 
shall include, at a minimum: industry response to the Request 
for Proposal; the performance measures that were used to 
evaluate the system testing; the cost of the Region 6 program, 
including infrastructure development, software development, 
hardware acquisition, and administration; the quantitative and 
qualitative benefits of the program; the plan for integrating 
the Defense Travel System in other regions; any differences 
between the Region 6 contract and those anticipated for 
subsequent expansion to other regions; and the evaluation plan 
for full implementation.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

Fisher House trust funds (sec. 304)
      The House bill contained a provision (sec. 1006) that 
would provide permanent authorization for the expenditure of 
funds from the Fisher House trust fund.
      The Senate amendment contained a provision (sec. 305) 
that would authorize $150,000 to be appropriated from the 
Fisher House Trust Fund, Department of the Army, and $150,000 
to be appropriated from the Fisher House Trust Fund, Department 
of the Navy. No funds were authorized to be appropriated from 
the Fisher House Trust Fund, Department of the Air Force.
      The House recedes with an amendment that would increase 
the amount authorized to be appropriated from the Army Fisher 
House Trust Fund to $250,000.
Refurbishment of M1A1 tanks (sec. 306)
      The House bill contained a provision (sec. 306) that 
would authorize $35.0 million for the refurbishment of M1A1 
tanks at the Anniston Army Depot under the Department of the 
Army's Abrams Integrated Management XXI (AIM XXI) program if 
the Secretary of Defense determines that the program is cost 
effective.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would not 
require this work to be performed at the Anniston Army Depot.
Operation of prepositioned fleet, National Training Center, Fort Irwin, 
        California (sec. 307)
      The House bill contained a provision (sec. 313) that 
would provide funding associated with the operation of the 
preposition fleet of equipment used by Army units during 
training rotations at the National Training Center (NTC).
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees are concerned with the Department of the 
Army's decision to change the way unit rotations to the NTC are 
funded. Currently, the Army provides funding to the National 
Training Center from a central account to defray the costs 
associated with units' use of pre-positioned equipment at the 
NTC. Under a new Army proposal, starting in fiscal year 1998, 
units scheduled to go to the NTC would have to pay for the use 
of the pre-positioned equipment out of the funds provided for 
home station training. The conferees believe that this would 
have a detrimental impact upon unit readiness as home station 
training, and thus total training, was reduced.
Refurbishment and installation of air search radar (sec. 308)
      The House bill contained a provision (sec. 305) that 
would authorize $6.0 million for the refurbishment and 
installation of the AN/SPS-48E air search radar for the Ship 
Self-Defense Systems at the Integrated Ship Defense Systems 
Engineering Center, Walllops Island, Virginia.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would make the 
provision permissive.
Contracted training flight services (sec. 309)
      The Senate amendment contained a provision (sec. 371) 
that would authorize $12.0 million for contracted training 
flight services.
      The House bill contained no similar provision.
      The House recedes.
Procurement technical assistance programs (sec. 310)
      The House bill contained a provision (sec. 307) that 
would authorize $15.0 million for a consolidated Procurement 
Technical Assistance Center (PTAC) and the Electronic Commerce 
Resource Center (ECRC) programs.
      The Senate amendment contained a provision (sec. 821) 
that would authorize $12.0 million for the PTAC program.
      The House recedes.
Operation of Fort Chaffee, Arkansas (sec. 311)
      The Senate amendment contained a provision (sec. 306) 
that would authorize $6.854 million for the operation of Fort 
Chaffee, Arkansas.
      The House bill contained no similar provision.
      The House recedes.

                 Subtitle B--Military Readiness Issues

Monthly reports on allocation of funds within operation and maintenance 
        budget subactivities (sec. 321)
      The House bill contained a provision (sec. 312) that 
would require the Secretary of Defense to notify and receive 
approval from the congressional defense committees prior to the 
reallocation of operation and maintenance funds above a certain 
threshold.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Department of Defense to provide a monthly report to 
Congress outlining the reallocation of funds within the 
operation and maintenance accounts and the effect of this 
reallocation on the ability of the Department to perform the 
functions for which the funds were originally appropriated.
Expansion of scope of quarterly readiness reports (sec. 322)
      The House bill contained a provision (sec. 311) that 
would expand the Quarterly Readiness Report required by section 
361 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106) to include data and analysis on 
additional readiness indicators, which would provide a more 
comprehensive readiness assessment.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
additional factors to be included in these reports such as 
personnel skills and pre-positioned equipment.
Semiannual reports on transfers from high-priority readiness 
        appropriations (sec. 323)
      The House bill contained a provision (sec. 315) that 
would extend through November 1, 2000, the requirement for the 
Secretary of Defense to report semi-annually on transfers from 
high-priority readiness accounts, in compliance with section 
362 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106). This provision would also expand the 
number of readiness accounts to be considered in the report.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would make it a 
semiannual report.
Annual report on aircraft inventory (sec. 324)
      The Senate amendment contained a provision (sec. 1037) 
that would require the Undersecretary of Defense (Comptroller) 
to submit with the budget request an annual report to the 
Congress on the aircraft in the inventory of the Department of 
Defense. The provision would also require the modification of 
budget data exhibits to display total numbers of aircraft where 
numbers of primary aircraft or primary authorized aircraft are 
displayed in exhibits.
      The House bill contained no similar provision.
      The House recedes.
Administrative actions adversely affecting military training or other 
        readiness activities (sec. 325)
      The Senate amendment contained a provision (sec. 363) 
that would require the Secretary of Defense to provide the 
President, the Committee on Armed Services of the Senate, the 
National Security Committee of the House of Representatives, 
and the head of any relevant Federal agency with written 
notification of any Federal administrative action that has or 
would have a significant adverse effect on the military 
readiness of any of the armed forces or a critical component of 
the armed forces, such as a Marine battalion preparing for 
deployment as part of a Marine Expeditionary Unit, or Special 
Operations Forces dedicated to a specific mission. Notification 
would be provided as soon as the Secretary becomes aware of an 
adverse administrative action or proposed administrative 
action. The notification would delay the implementation of the 
action for a period of 30 days unless the Secretary determines 
that the compliance with the proposed action is in the best 
interest of the American public, or the President directs the 
Secretary to comply based on a determination that the 
implementation of the action is more important than the effects 
on military readiness.
      The House bill contained no similar provision.
      The House recedes.
Common measurement of operations and personnel tempo (sec. 326)
      The Senate amendment contained a provision (sec. 1032) 
that would require the Chairman of the Joint Chiefs of Staff to 
develop, to the maximum extent practicable, a common 
measurement of operations tempo (OPTEMPO) and personnel tempo 
(PERSTEMPO).
      The House bill contained no similar provision.
      The House recedes.
Inclusion of Air Force depot maintenance as operation and maintenance 
        budget activity group (sec. 327)
      The House bill contained a provision (sec. 373) that 
would require the Secretary of the Air Force, beginning in 
fiscal year 1999, to identify funding for depot maintenance in 
a discreet subactivitygroup.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Prohibition of implementation of tiered readiness system (sec. 328)
      The House bill contained a provision (sec. 314) that 
would prohibit the implementation of any tiered readiness 
system which would change military service-specific methods of 
determining priorities for allocating funding, personnel, 
equipment, equipment maintenance, and training resources to 
military units, and the associated level of readiness of those 
units that result from those priorities, from the system that 
existed on October 1, 1996, until the Secretary of Defense 
provides Congress with a report recommending a new tiered 
readiness system along with legislative proposals and these 
proposals are enacted by the Congress.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would prohibit 
the implementation of a new tiered or cyclical readiness system 
based on the results of the reviews as required by section 329 
and section 330 of this Act, or any other review. The amendment 
would clarify that the prohibition does not preclude the 
Secretary of Defense from taking necessary action to maintain 
the combat preparedness of the active and reserve components of 
the United States Armed Forces.
      The conferees note that this provision does not block the 
ability of the Department of Defense to routinely adjust the 
manner in which it manages force readiness, particularly as it 
pertains to maintaining necessary combat capabilities. Rather, 
the provision precludes the adoption of a new tiered or 
cyclical readiness system, as outlined in section 329 and 
section 330 of this Act, pending subsequent congressional 
review and concurrence given the significant policy issues 
associated with such proposals. Accordingly, the provision 
allows for the Secretary of Defense, following the completion 
of the reviews required by sections 329 and 330 of this Act, or 
any other review the Secretary may deem appropriate, to submit, 
for Congressional consideration, a request for relief from this 
prohibition.
Report on military readiness requirements of the Armed Forces (sec. 
        329)
      The Senate amendment contained a provision (sec. 1034) 
that would direct the Department to further explore the 
potential for tiered readiness. This provision would require 
the Chairman and the service chiefs, together with the 
Commander in Chief of the Special Operations Command and the 
commanders of the other unified commands, to prepare a second 
report that would examine the extent to which the readiness of 
the armed forces could be tiered. Rather than looking at a 
generic major regional conflict, this report would require an 
examination of the tiered readiness concept within the force 
structure advocated by the Quadrennial Defense Review, 
including the armed forces required to deter or defeat a 
strategic attack upon the United States. The report would 
include a rotational examination of the tiering of the armed 
forces that would focus on the brigade and battalion levels of 
the Army and Marine Corps Divisions, the squadron levels of the 
Air Force, Navy and Marine Corps Wings, and the Navy Fleets.
      The House bill contained no similar provision.
      The House recedes.
Assessment of cyclical readiness posture of the Armed Forces (sec. 330)
      The Senate amendment contained a provision (sec. 1035) 
that would require the Secretary of Defense to report on the 
impact of moving to a cyclical readiness approach for major 
warfighting units. Under this approach, a high state of 
readiness alternates from one unit to another, as is already 
done with the blue and gold crews on ballistic missile 
submarines. The report should identify the savings and risks 
associated with cyclical readiness.
      The House bill contained no similar provision.
      The House recedes.
Report on military exercises conducted under certain training exercise 
        programs (sec. 331)
      The House bill contained a provision (sec. 316) that 
would require the Secretary of Defense to report by January 15, 
1998, on both past and planned joint training exercises 
sponsored by the Chairman, Joint Chiefs of Staff (CJCS) 
Exercise Program and the Partnership for Peace (PFP) program. 
The report would include the type, description, duration, 
objectives, the percentage of service-unique training 
accomplished, and an assessment of the training value of each 
CJCS and PFP exercise.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
exercises funded through the Cooperative Threat Reduction 
Program. The conference agreement would also require the report 
to include an assessment of the value provided through enhanced 
military to military relationships between the participating 
nations, and the extent to which the training exercises 
enhanced the readiness capabilities of all forces involved in 
the exercise.
Report on overseas deployment (sec. 332)
      The Senate amendment contained a provision (sec. 1033) 
that would require the Department of Defense to report on the 
number of personnel deployed overseas as of June 30, 1996 and 
June 30, 1997. The report would distinguish between personnel 
who are forward deployed as their permanent duty station and 
those deployed overseas for temporary duty, such as service-
specific exercises, joint exercises, exercises with allies, and 
deployments for contingency operations.
      The House bill contained no similar provision.
      The House recedes.

                  Subtitle C--Environmental Provisions

Revision of membership terms for Strategic Environmental Research and 
        Development Program Scientific Advisory Board (sec. 341)
      The House bill contained a provision (sec. 341) that 
would amend section 2904(b)(4) of title 10, United States Code, 
to provide that appointments to the Strategic Environmental 
Research and Development Program (SERDP) Scientific Advisory 
Board be for not less than two years and not more than four 
years. The Department of Defense recommended this provision to 
give the SERDP director the flexibility to fill unexpected 
vacancies on the Board.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Amendment to authority to enter into agreements with other agencies in 
        support of environmental technology certification (sec. 342)
      The House bill contained a provision (sec. 342) that 
would expand the authority of the Secretary of Defense under 
section 327 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201). Section 327 authorizes 
the Secretary to initiate a program to provide for cooperative 
agreements with state and local governmental agencies in 
support of multi-state and regional certification of 
environmental cleanup technologies. The House provision would 
specifically authorize the Secretary to enter into agreements 
with Indian tribes and would broaden the range of technologies 
subject to evaluation for certification.
      The Senate amendment contained a provision (sec. 335) 
that would require the Department to prepare guidelines for 
cost-sharing related to the cooperative agreements authorized 
under section 327.
      The Senate recedes with an amendment that would expand 
the scope of the program as proposed in the House bill, but 
require the Department of Defense to prepare guidelines and 
meet expanded reporting requirements. The new authority would 
become effective 30 days after the date of submission of the 
guidelines required by the provision.
Modifications of authority to store and dispose of non-defense toxic 
        and hazardous materials (sec. 343)
      The House bill contained a provision (sec. 344) that 
would amend section 2692 of title 10, United States Code, to 
clarify exemptions from the prohibition against Department of 
Defense (DOD) storage or disposal of toxic or hazardous 
material that is not owned by the Department. The 
administration recommended this provision to ensure that the 
Department has appropriate authority to control munitions 
stored or disposed of in connection with the following DOD 
activities: (1) storage of explosive and hazardous materials in 
conjunction with space launch programs; (2) storage of member 
personal property, such as guns, ammunition, and related 
material, when such storage is in the interest of public 
safety; (3) storage of allied/foreign munitions during joint 
testing, exercises or coalition warfare; (4) storage of 
explosives and hazardous materials in support of other U.S. 
Government agencies, to include State and local law enforcement 
agencies; (5) storage of contractor owned explosive materials 
when performing a service for the benefit of the U.S. 
Government; and (6) storage of commercial explosives on DOD 
installations participating in full or partial privatization.
      The Senate amendment contained a similar provision (sec. 
331).
      The Senate recedes with a clarifying amendment.
Annual report on payments and activities in response to fines and 
        penalties assessed under environmental laws (sec. 344)
      The Senate amendment contained a provision (sec. 332) 
that would require an annual report of fines and penalties 
assessed against the Department of Defense (DOD) under Federal, 
State, or local environmental laws.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Annual report on environmental activities of the Department of Defense 
        overseas (sec. 345)
      The Senate amendment contained a provision (sec. 333) 
that would require the Department of Defense (DOD) to report 
annually on overseas environmental restoration, compliance, and 
other international environmental activities.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees hold a strong interest in ensuring 
appropriate oversight of funds used in support of the 
Department's overseas environmental policy.
Review of existing environmental consequences of the presence of the 
        United States Armed Forces in Bermuda (sec. 346)
      The Senate amendment contained a provision (sec. 1091) 
that would require the Secretary of Defense, not later than 120 
days after the date of enactment of this Act, to submit a 
report to the congressional defense committees that describes 
the remaining environmental effects of the presence of the 
United States Armed Forces in Bermuda.
      The House bill contained no similar provision.
      The House recedes.
Sense of Congress on deployment of United States Armed Forces abroad 
        for environmental preservation activities (sec. 347)
      The House bill contained a provision (sec. 1062) that 
would express the sense of Congress that the United States 
Armed Forces should not be deployed outside the United States 
to provide assistance to another nation in connection with 
environmental preservation activities within that nation.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Recovery and sharing of costs of environmental restoration at 
        Department of Defense sites (sec. 348)
      In relation to Department of Defense cost-sharing 
policies and practices at cleanup sites, the Senate amendment 
contained a provision (sec. 337) that would direct the 
Secretary of Defense to: (1) provide guidance to the military 
departments and the Defense Logistics Agency (DLA) that 
resolves current inconsistencies in recovering cleanup costs 
from potentially responsible third parties; (2) require the 
military departments and DLA to aggressively pursue future cost 
reimbursement and recovery actions; (3) require the military 
departments and the DLA to identify contractors or other 
private third parties involved in contamination at Department 
of Defense (DOD) sites; (4) require the military departments 
and DLA to obtain all relevant data regarding contractors or 
other responsible parties identified contributing to site 
contamination, regardless of wrongdoing; (5) require the 
military departments and DLA to gather and maintain the most 
timely and accurate cost data available from the departments' 
and other agencies' records; (6) require the military 
departments and DLA to provide consistent estimates, including 
all cleanup costs for DOD environmental reports to Congress, 
regardless of the source of funds; and (7) require the military 
departments to offset environmental restoration budget 
requirements with amounts recovered from liable third parties 
or contractors.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees note that there have been a series of 
General Accounting Office (GAO) reports on DOD environmental 
cleanup which indicate that the Department has incurred a 
significant amount of cleanup expenses in instances in which a 
third party may have contributed to the contamination of 
government property. The GAO has reported that the DOD lacks 
uniform guidance regarding the policies and practices for 
recovery of such costs. The conferees have concluded that 
inconsistent policies have contributed to a lack of focus and 
minimal cost-recovery or cost-sharing at third party sites, 
particularly at government-owned/contractor-operated 
facilities.
Partnerships for investment in innovative environmental technologies 
        (sec. 349)
      The House bill contained a provision (sec. 346) that 
would support the administration's proposal to authorize the 
Secretary of Defense to enter into partnerships with private 
sector entities in order to demonstrate and validate innovative 
environmental technologies. All partnership relationships would 
be contingent upon a determination that there is a clear 
potential for the technology to be of significant value to 
Department of Defense environmental activities. The authority 
would be subject to expiration three years after the enactment 
of this Act and the Secretary of Defense would have to provide 
annual reports to Congress on the use of this authority.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would: (1) 
require the use of competitive procedures for the selection of 
any private sector participants in a partnership; (2) require 
that parties other than the Department of Defense provide at 
least 50 percent of the funding in any partnership (not 
including in-kind contributions or pre-existing investments); 
(3) permit partnerships only in the case of technologies that 
the Secretary determines would not be developed without the 
commitment of Department of Defense funds and are likely to be 
of significant value to the Department at a substantial number 
of clean-up sites; and (4) require the Secretary to develop 
appropriate regulations to ensure that all Department of 
Defense funds committed to a partnership are expended to 
develop the technologies authorized in the partnership 
agreement.
      In addition, the amendment would require the Secretary of 
Defense, before entering into any partnership, to evaluate: (1) 
the potential for the technology to be used by the Department 
for environmental remediation; (2) the technical feasibility 
and maturity of the technology being considered; (3) the 
adequacy of financial and management plans; (4) a cost and 
benefit analysis of the proposed technologies; (5) the 
potential for transfer or commercialization of the technology; 
and (6) the proposed cost-sharing arrangement.
Procurement of recycled copier paper (sec. 350)
      The Senate amendment contained a provision (sec. 340) 
that would codify and extend the Executive Order 12873 
requirements for Federal agencies to increase the use of 
recycled-content paper products, as specifically applied to the 
Department of Defense (DOD). The provision would specifically 
require the Department to use recycled-content copier paper, as 
follows: 20 percent, January 1, 1998; 30 percent, January 1, 
1999; and 50 percent, January 1, 2004, but if DOD is unable to 
meet the 2004 deadline the Secretary of Defense must certify 
that fact to Congress one year prior, which would vitiate the 
deadline. The Department would not be required to meet any of 
these deadlines if the cost differential between recycled-
content paper and virgin paper exceeds seven percent.
      The House bill contained no similar provision.
      The House recedes with an amendment that would replace 
the seven percent cost differential with a requirement that the 
relevant departmental secretary make a finding that there is a 
``significant'' price difference between recycled-content and 
virgin copier paper.
Pilot program for the sale of air pollution emission reduction 
        incentives (sec. 351)
      The Senate amendment contained a provision (sec. 338) 
that would support the administration's proposal to give the 
military departments the authority to sell emission reduction 
credits, also known as incentives. The provision directs the 
Secretary of Defense to promulgate regulations that would 
provide for the retention of the proceeds at the facility that 
developed the credits for sale. The provision would also allow 
for use of proceeds from the sale of emission reduction credits 
to pay for fees and other charges associated with identifying, 
quantifying, or valuing the credits.Subsequent to the 
development of credits, less than $500,000 may be retained Defense-
wide.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees view the retention and use of proceeds at 
the facility level as a key element of this provision. In 
addition, the costs associated with identifying, quantifying, 
or valuing a facility's emission reduction credits should not 
be subject to the $500,000 cap on proceeds retention. Finally, 
the conferees expect that this new authority would be utilized 
at active facilities within the Department of Defense.

                   Subtitle D--Depot-Level Activities

      The House bill contained six provisions (secs. 331-336) 
that would govern the activities of the Department of Defense 
(DOD) in relation to the maintenance and repair of military 
equipment. The Senate amendment contained two similar 
provisions, and seven additional provisions not contained in 
the House bill.
      The conference agreement includes thirteen provisions 
concerning depot maintenance policy. The conferees believe 
these provisions will provide the Department with additional 
flexibility to utilize the most efficient source of maintenance 
and repair services that are consistent with the national 
security requirements of the United States.
Definition of depot-level maintenance and repair (sec. 355)
      The House bill contained a provision (sec. 333(a)) that 
would establish a statutory definition of depot-level 
maintenance and repair, based on the definition contained in 
current DOD regulations. This provision would require the 
inclusion of all depot-level maintenance and repair, including 
maintenance performed under other names such as interim 
contractor support (ICS) and contractor logistics support 
(CLS), for purposes of calculating the amount of depot 
maintenance performed by public and private sector activities, 
as required by section 2466 of title 10, United States Code, 
and other applicable sections.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would codify a 
definition of depot maintenance that is similar to the 
definition contained in the House bill, except that it would 
not include the procurement of a major weapon system 
modification or upgrade designed to improve program 
performance, the nuclear refueling of an aircraft carrier, or 
the procurement of parts for a safety modification.
Core logistics capabilities of Department of Defense (sec. 356)
      The House bill contained a provision (sec. 334) that 
would amend section 2464 of title 10, United States Code, to 
make it clear that it is essential for national defense that 
the Department of Defense (DOD) maintain a core logistics 
capability that is government-owned and government-operated. 
The provision would require the Secretary of Defense to 
identify those logistics activities necessary to maintain a 
core logistics capability that would include the capability, 
facilities, and equipment to maintain and repair those weapons 
systems necessary to meet the requirements of the National 
Military Strategy.
      The provision would require that, within four years of 
initial operational capability, DOD develop the capability to 
repair new weapons systems purchased by the Department that are 
identified as requiring a core logistics capability at 
government-owned and government-operated facilities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to identify those logistics 
capabilities that are necessary to maintain and repair the 
weapon systems and other military equipment that are required 
to enable the armed forces to fulfill the strategic and 
contingency plans prepared by the Chairman of the Joint Chiefs 
of Staff. The provision would require the performance of core 
logistics workloads necessary to maintain this capability 
within public depot activities.
      The provision does not require that maintenance for all 
weapon systems necessary for the execution of DOD strategic and 
contingency plans be performed at public facilities. Rather, it 
requires that the capability to perform maintenance and repair 
on these systems be retained in the public depot activities and 
that these activities be assigned sufficient workload to ensure 
that they are operated as cost efficiently as possible while 
preserving sufficient surge capacity to support the strategic 
and contingency plans of the U.S. Armed Forces. The conferees 
recognize that an efficient operation that preserves this surge 
capability does not require more than a single work shift at 
the depots during peacetime.
      The conference agreement creates specific exemptions from 
the core capability requirements, including an exemption for 
commercial systems purchased by DOD where these purchases do 
not constitute a majority of the sales of that item. The 
provision would also make conforming changes to existing 
sections of law.
Increase in percentage of depot-level maintenance and repair that may 
        be contracted for performance by non-government personnel (sec. 
        357)
      The Senate amendment contained a provision (sec. 311) 
that would allow the Department of Defense to utilize private 
entities to perform greater amounts of depot maintenance on 
military equipment. The provision would allow each of the 
military departments to spend up to 50 percent of their depot 
maintenance funds on contracts for maintenance at locations 
other than public depots. The remaining fifty percent of 
funding would have to be expended for maintenance at public 
depot activities; whether performed by government or non-
governmental personnel. This authority would become effective 
on October 1, 1998.
      The House bill had no similar provision.
      The House recedes with an amendment that would allow the 
military departments to increase from 40 percent to 50 percent 
the share ofdepot level maintenance performed by the private 
sector. These percentages would continue to be calculated based on 
whether the maintenance is performed by public or private sector 
personnel.
Annual report on depot-level maintenance and repair (sec. 358)
      The Senate amendment contained a provision (sec. 314) 
that would require the Secretary of Defense to provide an 
annual report to the Congress detailing the percentage of depot 
maintenance funds used during the preceding fiscal year for 
performance of depot-level maintenance and repair workloads at 
public and private facilities. The provision would also require 
that the Comptroller General of the United States provide the 
Congress with his views on whether the Department of Defense 
has complied with the requirements of section 2466 of title 10, 
United States Code.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Requirement for use of competitive procedures in contracting for 
        performance of depot-level maintenance and repair workloads 
        formerly performed at closed or realigned military 
        installations (sec. 359)
      The House bill contained a provision (sec. 333(b)) that 
would restrict the Secretary of Defense, or the secretary of a 
military department, from entering into a contract for the 
performance of depot-level maintenance and repair at any 
facility that was approved in 1995 for closure under the 
Defense Base Closure and Realignment Act (BRAC), unless the 
following requirements are met:
            (1) The secretary concerned would certify to the 
        Congress that all of the other maintenance and repair 
        facilities of that department are at 80 percent 
        capacity, as defined by the BRAC Commission in 1995;
            (2) The secretary concerned would certify to the 
        Congress that the total cost of the proposed contract 
        would be less than if the depot-level maintenance or 
        repair were accomplished in facilities owned and 
        operated by the Department of Defense;
            (3) All of the data used to determine the total 
        costs would be available for examination; and
            (4) None of the depot-level maintenance and repair 
        work proposed under the contract was considered to be a 
        core logistics capability of the military department 
        concerned prior to July 1, 1995.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would replace 
the restrictions on privatizing-in-place the workloads at the 
closing public depot activities with a requirement to conduct 
fair and open competitions for these workloads. The requirement 
would only apply to those workloads that are proposed to be 
competed for outsourcing after enactment of the National 
Defense Authorization Act for Fiscal Year 1998. The requirement 
does not apply to those workloads that may not be outsourced 
because they are necessary to retain a core depot maintenance 
capability in public depot activities, workloads that were 
outsourced before the enactment of the National Defense 
Authorization Act for Fiscal Year 1998, or workloads that would 
be consolidated within another public depot activity.
      The provision outlines a number of requirements that the 
Department of Defense must satisfy in the conduct of these 
competitions. The conferees understand that these are only a 
few of the issues that the Department will have to address in 
the solicitation for, and consideration of, bids.
      (1) The source selection process must permit both public 
and private offerors to submit bids.
      (2) The source selection process must take into account 
the fair market value of any land, plant, or equipment at a 
closed or realigned military installation that is proposed to 
be used by the private offeror in the performance of the 
workload.
      (3) The source selection process must take into account 
the total direct and indirect costs that will be incurred by 
the Department of Defense and the total direct and indirect 
savings that will be derived by the Department of Defense. Such 
savings would include any overhead savings (e.g., reduced 
administrative costs, more efficient utilization of facilities) 
that would result from the consolidation of workloads to the 
remaining public depot activities.
      (4) The cost standards used to determine the depreciation 
of facilities and equipment shall provide, to the maximum 
extent practicable, identical treatment for all public and 
private offerors. The conferees expect that this will include, 
at a minimum, identical depreciation periods for plant and 
equipment at public and private facilities.
      (5) Any offeror, whether public or private, must be 
permitted to team with any other public or private entity to 
perform the workload at any location or locations of their 
choosing. The provision specifically states that no offeror may 
be given any preferential consideration for, or in any way be 
limited to, performing the workload at the closed or realigned 
facility or at any other specific location. The conferees 
expect full and open competitions for these workloads and 
expect that private sector bidders would submit proposals to 
perform these workloads at locations other than the closed or 
realigned installations. The Department would be expected to 
consider real differences among bidders in cost or capability 
to perform the work based on factors that would include the 
proposed location or locations of the workloads. The 
consideration of such differences does not constitute 
``preferential treatment.''
      (6) The provision would authorize the bundling of 
unrelated workloads into one contract only if the Secretary of 
Defense determines in writing that individual workloads cannot 
be performed separately by qualified bidders as logically and 
economically as the combined workloads can be performed by a 
single entity. The conferees are concerned that the bundling of 
these workloads could disadvantage bidders that are fully 
qualified to perform one or more of the individual workloads 
but cannot adequately perform all of the workloads combined. 
This would allow more offerors to participate in the 
competition and might yield increased savings to the taxpayer.
      (7) Before a request for proposal for these workloads can 
be issued, the Secretary of Defense must provide the Congress 
with a detailed directive or plan describing the procedures DOD 
would use to conduct these competitions. The conferees expect 
that the Secretary's report will explain any differences 
between the evaluation criteria or other procedures that will 
be used for these upcoming competitions and those that were 
used in the recent competition for the C-5 aircraft maintenance 
workload. The report should also describe any special 
requirements or criteria for these competitions, whether 
required by this provision or by the Department of Defense, 
that the Department does not anticipate applying to future 
public-private competitions that do not involve closed or 
realigned facilities.
      The provision would also require that the Comptroller 
General review the solicitations and competitions conducted 
pursuant to this authority and determine if the Department has 
complied with the requirements of this provision. The conferees 
note that section 716 of title 13, United States Code, gives 
the Comptroller General access to the information necessary to 
make his determination. This section requires each agency to 
provide the Comptroller General with all necessary information. 
The Comptroller General is required to maintain the same level 
of confidentiality for a record made available under this 
section, as is required of the head of the releasing agency. On 
the basis of this section, agencies have historically provided 
the General Accounting Office with information on the conduct 
of a procurement, regardless of whether a contract has yet been 
awarded. The conferees expect the Air Force to provide similar 
access in the case of public-private competitions covered by 
this section.
      The conferees are concerned that access to information 
was not provided to the Comptroller General during the recent 
competition for the C-5 workload. The refusal on the part of 
the Source Selection Authority and General Counsel of the Air 
Force to provide such information is inexplicable given the 
authority in title 13 cited above. The conferees note that the 
legislation restricting access to source selection material 
specifically states that ``[N]othing in this section shall be 
construed to authorize the withholding of any information from 
the Congress, any committee or subcommittee thereof, a Federal 
agency, any board of contract appeals of a Federal agency, the 
Comptroller General, or an Inspector General of a Federal 
agency'' (41 U.S.C. 423).
      The new provision would also provide a mechanism for the 
public depots (or any other offeror) to appeal directly to the 
Secretary of Defense, or his designee, if they believe the 
competition was conducted unfairly. The Secretary could not 
designate the source selection authority or an official within 
the same military department to perform this responsibility. 
The conferees expect that the procedures established by the 
Secretary will clarify that the Secretary need not consider on 
the merits any protest that has alreadybeen decided on the 
merits by the General Accounting Office.
      Finally, the provision would require the Secretary to 
report to the Congress on the proposed allocation of workloads 
currently performed at Kelly and McClellan Air Force Bases. 
Although the report must include a capacity utilization 
analysis based on the maximum potential capacity certified for 
the 1995 Base Realignment and Closure Commission, the conferees 
note that nothing precludes the Secretary from including 
additional analysis that would utilize any alternative baseline 
believed to be appropriate.
Clarification of prohibition on management of depot employees by 
        constraints on personnel levels (sec. 360)
      The Senate amendment contained a provision (sec. 313) 
that would prohibit the management of personnel who are 
involved in depot maintenance on the basis of any constraint or 
limitation in terms of man years, end strength, full-time 
equivalent positions, or maximum number of employees.
      The House bill contained no similar provision.
      The House recedes.
      The conferees believe personnel assigned to perform depot 
maintenance should be managed by the amount of workload 
required to be performed and the amount of funds provided for 
its performance.
Centers of industrial and technical excellence (sec. 361)
      The House bill contained a provision (sec. 335) that 
would direct the Secretary of Defense to establish Centers of 
Industrial and Technical Excellence at existing Department of 
Defense (DOD) maintenance and repair depots to encourage the 
reengineering of industrial processes, the adoption of best 
business practices, and to enable public-private partnerships 
for the performance of depot-level maintenance and repair.
      The Senate amendment contained a similar provision (sec. 
312).
      The House recedes with an amendment that would apply the 
provisions of section 2667(d) of title 10, United States Code, 
and allow lease proceeds and other receipts from these 
partnerships to be credited to the account that incurred the 
costs. That credit would permit the centers to be reimbursed 
for expenses related to these partnerships. The conferees 
direct the Secretary of Defense to annually report to the 
congressional defense committees on the revenues received 
pursuant to this authority.
Extension of authority for aviation depots and naval shipyards to 
        engage in defense related production and services (sec. 362)
      The House bill contained a provision (sec. 331) that 
would extend through fiscal year 1999 the authority provided by 
section 1425 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101--510) for naval shipyards and 
aviation depots of all the military departments to bid on 
defense-related production and services.
      The Senate amendment contained a similar provision (sec. 
318) that would extend this authority through fiscal year 1998.
      The Senate recedes.
Repeal of conditional repeal of certain depot-level maintenance and 
        repair laws and a related reporting requirement (sec. 363)
      The Senate amendment contained a provision (sec. 317) 
that would repeal section 311 of the National Defense 
Authorization Act for Fiscal Year 1996, which would have 
repealed sections 2466 and 2469 of title 10, United States 
Code, contingent upon the submission of a new policy by 
Department of Defense (DOD) to replace those statutes. Section 
311 would be irrelevant because the DOD failed to submit an 
acceptable plan.
      The House bill contained no similar provision.
      The House recedes.
Personnel reductions, Army depots participating in Army Workload and 
        Performance System (sec. 364)
      The House bill contained a provision (sec. 336) that 
would prohibit any reduction in force of any civilian employees 
at the five Army maintenance depots participating in the 
demonstration and testing of the Army Workload and Performance 
System (AWPS), until the Secretary of the Army certifies to the 
Congress that the AWPS is fully operational and the manpower 
audits being performed by the General Accounting Office, the 
Army Audit Agency, and the Army Inspector General have been 
completed.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
prohibit the initiation of any reduction in force of any 
civilian employees at the five Army maintenance depots 
participating in the demonstration and testing of AWPS, until a 
report is provided by the Secretary of the Army certifies to 
the Congress that the AWPS is fully operational. This 
prohibition does not apply to any reductions in force necessary 
to implement the BRAC 1995 decisions at Letterkenny and Red 
River Army Depots. The conferees believe that because this 
personnel system is used to determine the number of employees 
that are necessary to perform the work at the depots, it should 
be operational before a determination is made regarding 
additional reductions in force. The conferees do not view this 
provision as a precedent for prohibiting reductions in force at 
Department of Defense installations.
Report on allocation of core logistics activities among Department of 
        Defense facilities and private sector facilities (sec. 365)
      The Senate amendment contained a provision (sec. 315) 
that would require the Department of Defense to evaluate and 
report to the Congress on an alternative set of criteria for 
distinguishing core from non-core maintenance.
      The House bill contained no similar provision.
      The House recedes.
Review of use of temporary duty assignments for ship repair and 
        maintenance (sec. 366)
      The Senate amendment contained a provision (sec. 316) 
that would require the General Accounting Office to review the 
Navy's policies for using Temporary Duty shipyard workers to 
perform ship maintenance work at home ports.
      The House bill contained no similar provision.
      The House recedes.
Sense of Congress regarding realignment of performance of ground 
        communication-electronic workload (sec. 367)
      The Senate amendment contained a provision (sec. 319) 
that would express the Sense of the Congress that the transfer 
of the ground communication-electronic workload to Tobyhanna 
Army Depot, Pennsylvania, should be carried out in adherence to 
the schedule prescribed for that transfer by the Defense Depot 
Maintenance Council on March 13, 1997.
      The House bill contained no similar provision.
      The House recedes.

           Subtitle E--Commissaries and Nonappropriated Fund

Reorganization of laws regarding commissaries and exchanges and other 
        morale, welfare, and recreation activities (sec. 371)
      The House bill contained a provision (sec. 361) that 
would reorganize chapter 147 of title 10, United States Code, 
so that the chapter deals exclusively with provisions of law 
relating to commissaries, exchanges, and other morale, welfare 
and recreation activities.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Merchandise and pricing requirements for commissary stores (sec. 372)
      The House bill contained a provision (sec. 362) that 
would amend section 2486 of title 10, United States Code, to 
restrict the categories of merchandise that may be sold in 
commissaries; require that no change in the current commissary 
surcharge could occur without a prior authorization in law; and 
provide that the Secretary of Defense may not make any change 
in pricing policies without advance notice to Congress and a 
waiting period of 90 legislative days.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
that any proposed change to the authorized product list be 
submitted annually and would establish, in law, that the amount 
of the surcharge would be five percent of the sale price of 
merchandise sold.
Limitation on noncompetitive procurement of brand-name commercial items 
        for resale in commissary stores (sec. 373)
      The House bill contained a provision (sec. 363) that 
would amend section 2486(e) of title 10, United States Code, to 
make more rigorous the standard for determining brand name 
commercial items that may be sold by commissaries.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Treatment of revenues derived from commissary store activities (sec. 
        374)
      The House bill contained a provision (sec. 366) that 
would provide that amounts received by the Defense Commissary 
Agency (DECA) from certain sources be deposited in the 
surcharge account.
      The Senate amendment contained a similar provision (sec. 
351).
      The House recedes with an amendment that would not permit 
earnings from the sale of tobacco products to be deposited in 
the surcharge account.
Maintenance, repair, and renovation of Armed Forces Recreation Center, 
        Europe (sec. 375)
      The conferees agree to a provision that would clarify the 
authority of the Secretary of Defense to use appropriated funds 
to maintain, repair, and renovate real property at the Armed 
Forces Recreation Center, Europe.
Plan for use of public and private partnerships to benefit morale, 
        welfare and recreation activities (sec. 376)
      The House bill contained a provision (sec. 365) that 
would permit the Secretary of Defense to authorize 
nonappropriated fund instrumentalities to enter into leases, 
licensing agreements, concession agreements, and other 
contracts with private persons and state or local governments 
involving real and personal property under the control of such 
nonappropriated fund instrumentalities in order to facilitate 
the provision of facilities, goods, or services to authorized 
patrons.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to develop a comprehensive plan 
defining the purpose and goals, and describing how the 
Department would implement and administer leases, licensing 
agreements, concession agreements, and other contracts with 
private persons and state or local governments involving real 
and personal property under the control of such nonappropriated 
fund instrumentalities in order to facilitate the provision of 
facilities, goods, or services to authorized patrons, and 
submit the plan to the Congress.

                           Instrumentalities

                       Subtitle F--Other Matters

Assistance to local educational agencies that benefit dependents of 
        members of the armed forces and Department of Defense civilian 
        employees (sec. 381)
      The House bill contained a provision (sec. 371) that 
would authorize $35.0 million for educational assistance to 
local education agencies where the standard for the minimum 
level of education within the state could not be maintained 
because of the large number of military connected students or 
the effects of base realignments and closures.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Center for Excellence in Disaster Management and Humanitarian 
        Assistance (sec. 382)
      The Senate amendment contained a provision (sec. 362) 
that would authorize the Secretary of Defense to operate a 
Center for Excellence in Disaster Management and Humanitarian 
Assistance at Tripler Army Medical Center to address the 
military's role in a wide range of disaster initiatives 
throughout Southeast Asia and the Pacific Basin region.
      The House bill contained no similar provision.
      The House recedes with an amendment that would not 
require the location of this center to be at the Tripler Army 
Medical Center.
Applicability of Federal printing requirements to Defense Automated 
        Printing Service (sec. 383)
      The House bill contained a provision (sec. 377) that 
would clarify that the Defense Automated Printing Service 
(DAPS) shall comply with chapter 5 of title 44, United States 
Code, regarding printing services.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Study and notification requirements for conversion of commercial and 
        industrial type functions to contractor performance (sec. 384)
      The House bill contained a provision (sec. 1412) that 
would amend current law dealing with congressional notification 
of any decision to study a commercial function of the 
Department of Defense for possible outsourcing to the private 
sector, and any decision to ultimately outsource such a 
function.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would amend 
current law to expand congressional notifications and to 
include a timetable for conversion to contractor performance.
Collection and retention of cost information data on contracted out 
        services and functions (sec. 385)
      The House bill contained a provision (sec. 1413) that 
would require the Secretary of Defense to collect and 
permanently retain, cost information data regarding performance 
of the service or function by private contractor employees.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
time that the data would have to be retained to ten years.
Financial assistance to support additional duties assigned to Army 
        National Guard (sec. 386)
      The Senate amendment contained a provision (sec. 364) 
that would authorize the Secretary of the Army to contribute 
funds to the Army National Guard in order to pay for the costs 
of those services carried out by the Guard in the performance 
of maintenance and other responsibilities of the Secretary.
      The House bill contained no similar provision.
      The House recedes.
Competitive procurement of printing and duplication services (sec. 387)
      The House bill contained a provision (sec. 1404) that 
would extend the authority under the fiscal year 1996 act that 
would require the Secretary of Defense to procure 70 percent of 
the non-classified printing services from the commercial 
sector. The provision would also prohibit the Defense 
Automation and Printing Service from imposing a surcharge on 
printing and duplication services when those services are 
procured outside the Department of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Continuation and expansion of demonstration program to identify 
        overpayments made to vendors (sec. 388)
      The House bill contained a provision (sec. 376) that 
would reauthorize, through fiscal year 1998, section 354 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106), which provides for a demonstration program to 
identify overpayments made to vendors. The authority provided 
by this specific provision is restricted to the identification 
of any overpayments and does not extend to the collection of 
debts. Authority for the procurement of debt collection 
services is already provided by section 3718 of title 31, 
United States Code.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the General Accounting Office to review the program and report 
to Congress any significant findings such as the amount of 
funds that were recovered, together with any problems that 
occurred during the collection of these funds.
Standard forms regarding performance work statement and request for 
        proposal for conversion of services and functions at military 
        installations (sec. 389)
      The House bill contained a provision (sec. 1411) that 
would require the Secretary of Defense to develop standard 
performance work statements and standard requests for proposal 
to be used when considering outsourcing of commercial 
functions. The use of such forms would provide relief from 
certain cumbersome procedures and requirements of OMB circular 
A-76.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would allow the 
Secretary to develop certain forms to meet the requirements of 
A-76. The conferees encourage the Secretary, when developing 
such forms, to give priority to services and functions that 
have already been converted by 50 percent.
Base operations support for military installations on Guam (sec. 390)
      The House bill contained a provision (sec. 378) that 
would prohibit the use of nonimmigrant aliens, as defined in 
section 101(a)(15)(H)(ii) of title 8, United States Code, for 
any base operations support contract to be performed on Guam.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Warranty claims recovery pilot program (sec. 391)
      The Senate amendment contained a provision (sec. 367) 
that would authorize a pilot program to recover any refunds 
owed the Air Force for maintenance work performed in public 
depots on aircraft engines while under warranty. Receipts under 
this program would be returned to the appropriations account 
from which the maintenance work was funded.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Comptroller General to review this program and report the 
results to the Congress.
Program to investigate fraud, waste, and abuse within Department of 
        Defense (sec. 392)
      The House bill contained a provision (sec. 372) that 
would authorize the continuation of Operation Mongoose through 
fiscal year 2003. The section would establish the Under 
Secretary of Defense (Comptroller) as the executive agent for 
this program and would require a report on the activities of 
the operation.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that permanently 
provides for a program in the Department of Defense that 
coordinates the identification and prevention of fraudulent 
financial actions within Department of Defense (DOD). The 
conferees support the acceleration of transportation and vendor 
pay review and believe in expanding the program to use 
information from other government agencies to detect fraud 
within DOD. By mining financial information, the Department 
ofDefense would be able to expand its current fraud detection efforts 
to improve the integrity of its financial management systems while 
reducing waste, fraud, and abuse.
      In addition, the conferees direct the Secretary of 
Defense to provide a report to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives by December 31, 1997, on the 
activities reviewed by Operation Mongoose, the savings or costs 
avoidance identified by activity, the number of cases referred 
for investigation, and the number of cases investigated by the 
investigating agency.
Multitechnology automated reader card demonstration program (sec. 393)
      The Senate bill contained a provision (sec. 369) that 
would require the Secretary of the Navy to carry out a two year 
demonstration program during 1998 and 1999 to expand the use of 
multitechnology automated reader cards throughout the Navy and 
Marine Corps. This demonstration would include the use of 
``smartship'' technology.
      The House bill included no similar provision.
      The House recedes.
Plan for reduction in overhead costs of inventory control points (sec. 
        394)
      The House bill contained a provision (sec. 1421) that 
would require the Secretary of Defense to develop and implement 
a plan to reduce the overhead costs of the supply management 
activities of the Defense Logistics Agency and the military 
services to eight percent of the annual net sales.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the development of a plan on how the Department will reduce its 
overhead costs of the Inventory Control Points (ICPs) to eight 
percent by October 1, 2000.
Schedule for implementation of best inventory management practices at 
        Defense Logistic Agency (sec. 395)
      The Senate amendment contained a provision (sec. 366) 
that would direct the Director of the Defense Logistics Agency 
to develop and submit to Congress a schedule for the 
implementation of the best inventory management practices found 
in the commercial sector that are consistent with military 
requirements.
      The House bill contained no similar provision.
      The House recedes with an amendment that would expand the 
list of items to include pharmaceutical, automotive, and other 
supplies.
      The conferees are concerned with recent reports of the 
excess inventory maintained by the Department of Defense. The 
retention of this inventory requires the expenditure of 
resources for storage and administration. The conferees note 
the recent General Accounting Office report outlining the 
significant quantities of excess inventory prepositioned in 
Europe and direct the Department to take those actions 
necessary to reduce the items for which there is no identified 
need and where disposal would result in long-term savings to 
the Federal Government.

                   Legislative Provisions Not Adopted

Quarterly reports on execution of operation and maintenance 
        appropriations
      The House bill contained a provision (sec. 317) that 
would require the Secretary of Defense to report quarterly on 
the execution of the operation and maintenance budget.
      The Senate amendment contained no similar provision.
      The House recedes.
Exclusion of certain large maintenance and repair projects from 
        percentage limitation on contracting for depot-level 
        maintenance
      The House bill contained a provision (sec. 332) that 
would exclude from the restrictions contained in section 2466 
of title 10, United States Code, an aircraft carrier or a 
submarine repair or overhaul project that represents five 
percent or more of the total amount made available to the 
Department of the Navy for depot-level maintenance and repair.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees agree that the exception to the definition 
of depot maintenance for the refueling of nuclear aircraft 
carriers contained within section 355 of the Act together with 
the additional flexibility provided by the change from 60/40 to 
50/50, should provide the same flexibility the House bill 
intended to provide.
Authorization to pay negotiated settlement for environmental cleanup at 
        former department of defense sites in Canada
      The House bill contained a provision (sec. 343) that 
would authorize the Secretary of Defense to pay the Government 
of Canada up to $100.0 million through annual payments over a 
ten year period for the environmental cleanup of four sites 
formerly operated by the U.S. Armed Forces in Canada: 21 
Distant Early Warning (DEW) Line sites; Goose Bay Airfield; 
Haines-Fairbanks Pipeline sites; and the U.S. Naval Station, 
Argentia. The authorization request was based on a bilateral 
agreement between the United States and Canada. The agreement 
provided for the payment of the $100.0 million into the Foreign 
Military Sales (FMS) Trust Fund Account so that the Canadian 
Government could draw against this account to purchase 
unspecified military equipment from an undetermined 
manufacturing source.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees decline to provide the requested 
authorization and direct the Department to focus on funding and 
conducting environmental cleanup at sites where there is an 
existing legal obligation.
Revision of report requirement of Navy program to monitor ecological 
        effects of organotin
      The House bill contained a provision (sec. 345) that 
would extend the date and expand the scope of a reporting 
requirement originally established in section 333 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 104-201).
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees intend to monitor the progress made by the 
Environmental Protection Agency (EPA) and the Navy in 
implementation of criteria established by EPA for control of 
organotin. If the permitting process is not consistent with the 
EPA criteria, the conferees are prepared to revisit this issue 
in relation to the Department's fiscal year 1999 budget 
request.
Pilot program to test an alternative technology for eliminating solid 
        and liquid waste emissions during ship operations
      The House bill contained a provision (sec. 347) that 
would authorize the Secretary of the Navy to establish a pilot 
program to demonstrate plasma arc technology for treating 
shipboard solid and liquid waste. The technology would consist 
of a compact, stationary, high alumina refractory hearth, 
plasma arc melter system for incineration of waste.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that the Navy is currently 
investigating the applications of plasma arc technology for the 
destruction of shipboard solid waste. That work is taking place 
in an approved research and development program. As a part of 
that program, the Navy tested the feasibility of using a high 
alumina refractory hearth for shipboard applications and 
determined that the hearth structure was unacceptable because 
the variable shipboard waste streams produce a molten slag that 
dissolves high alumina hearth walls. However, that was only one 
aspect of the plasma arc technology research and development 
efforts. Therefore, the conferees encourage the Navy to 
continue its current effort to develop the plasma arc thermal 
destruction technology.
Transfer of jurisdiction over exchange, commissary, and morale, welfare 
        and recreation activities to Under Secretary of Defense 
        Comptroller
      The House bill contained a provision (sec. 364) that 
would amend section 135 of title 10, United States Code, to 
transfer administrative responsibility within the Department of 
Defense for the areas of exchange, commissary, and 
nonappropriated fund instrumentalities regarding morale, 
welfare and recreation activities from the Under Secretary of 
Defense for Personnel and Readiness to the Under Secretary of 
Defense (Comptroller).
      The Senate amendment contained no similar provision.
      The House recedes.
Authorized use of appropriated funds for relocation of Navy Exchange 
        Service Command
      The House bill contained a provision (sec. 367) that 
would provide that the Navy Exchange Service Command (NEXCOM) 
shall not be required to reimburse the United States for 
appropriated funds allotted to NEXCOM during fiscal years 1994, 
1995, and 1996 for costs incurred in connection with the 
relocation of NEXCOM headquarters to Virginia Beach, Virginia 
and for the lease of headquarters space.
      The Senate amendment contained no similar provision.
      The House recedes.
Prohibition on use of Special Operations Command budget for base 
        operation support
      The House bill contained a provision (sec. 375) that 
would amend section 167(f) of title 10, United States Code, to 
prohibit the use of funds provided for the Special Operations 
Command for base operations support expenses incurred at 
military installations.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that Congress established the Special 
Operations Command, including a separate major force budget 
program (MFP-11), to correct serious deficiencies in special 
operations capabilities and to ensure special operations combat 
readiness. The conferees believe that the regular practice of 
using MFP-11 funds for base operations support would be in 
conflict with the original intent for these funds. However, the 
conferees recognize the need to provide the Commander-in-Chief 
of the Special Operations Command with the flexibility to use 
these funds in this manner should the necessity arise. 
Therefore, the conference agreement does not contain this 
provision. However, the conferees intend to monitor this issue 
closely to ensure that MFP-11 funds are used in a manner 
consistent with the intentions of Congress and agree to revisit 
the issue should the need arise.
Availability of funds for separation pay for defense acquisition 
        personnel
      The House bill contained a provision (sec. 1303) that 
would authorize $100.0 million in operations and maintenance 
funding for payment of separation pay to the Department of 
Defense civilian acquisition personnel.
      The Senate amendment contained no similar provision.
      The House recedes.
Competitive procurement of finance and accounting services
      The House bill contained a provision (sec. 1401) that 
would require the Secretary of Defense to competitively procure 
finance and accounting services currently provided by the 
Defense Finance and Accounting Service from among government 
and private sector sources.
      Senate amendment contained no similar provision.
      The House recedes.
Competitive procurement of services to dispose of surplus defense 
        property
      The House bill contained a provision (sec. 1402) that 
would require the Secretary of Defense to make available for 
competition those functions of the Defense Reutilization and 
Marketing Service that are associated with the disposal of 
surplus Department of Defense property.
      The Senate amendment contained no similar provision.
      The House recedes.
Competitive procurement of functions performed by Defense Information 
        Systems Agency
      The House bill contained a provision (sec. 1403) that 
would require the Secretary of Defense to competitively procure 
commercial and industrial type functions performed by the 
Defense Information Systems Agency.
      The Senate amendment contained no similar provision.
      The House recedes.
Competitive procurement of commercial and industrial type functions by 
        defense agencies
      The House bill contained a provision (sec. 1406) that 
would require the Secretary of Defense to competitively procure 
commercial and industrial type functions performed by defense 
agencies.
      The Senate amendment contained no similar provision.
      The House recedes.
Consolidation of procurement technical assistance centers and 
        electronic commerce resource centers
      The House bill contained a provision (sec. 1422) that 
would require consolidation of the Procurement Technical 
Assistance Center (PTAC) and the Electronic Commerce Resource 
Center (ECRC) programs in fiscal year 1998. The provision would 
also require the use of competitive procedures in granting 
awards under the consolidated program.
      The Senate amendment contained no similar provision.
      The House recedes.
Risk assessments under the defense environmental restoration program
      The Senate amendment contained a provision (sec. 336) 
that would direct the Secretary of Defense to define the 
elements of a relative risk site evaluation methodology, to 
develop uniform guidance for site assessment and ranking, and 
to ensure consistent application of the guidance. The 
Department's relative risk site evaluation involves three site 
categories for justifying requirements and allocating funds: 
high; medium; and low. According to the Department, the high 
relative risk sites are given a greater funding priority than 
the medium and low relative risk sites.
      The House bill contained no similar provision.
      The Senate recedes.
Tagging system for identification of hydrocarbon fuels used by the 
        Department of Defense
      The Senate amendment contained a provision (sec. 339) 
that would authorize the Department of Defense to conduct a 
pilot program to determine if hydrocarbon fuels used by the 
Department can be tagged in order to deter theft and facilitate 
the determination of the source of surface and underground 
pollution in locations having separate fuel storage facilities 
from the Department and civilian companies.
      The House bill contained no similar provision.
      The Senate recedes.
Report on options for the disposal of chemical weapons and agents
      The Senate amendment contained a provision (sec. 341) 
that would require the Secretary of Defense to submit a report 
to Congress on the options available to the Department of 
Defense for the disposal of chemical weapons and agents without 
building additional chemical weapons disposal facilities in the 
continental United States.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106) 
directed the Secretary of Defense to conduct an assessment of 
the chemical stockpile disposal program and to consider 
measures that could be taken to reduce program costs. Further 
discussion on the results of the assessment are addressed 
elsewhere in the statement of managers.
Integration of military exchange services
      The Senate amendment contained a provision (sec. 352) 
that would require the secretaries of the military departments 
to integrate the three military exchange systems by September 
30, 2000.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees endorse the concept of exchange 
integration. The conferees recognize that the Department of 
Defense is currently conducting a due diligence study to 
determine which functions could be integrated to yield savings 
and efficiencies while preserving high levels of customer 
service. The conferees direct the Secretary of Defense, upon 
completion of the due diligence study and if the study so 
recommends, to develop a plan for integrating the functions 
identified in the report. The plan must include a timeline for 
accomplishing each of the integration functions. The plan shall 
be submitted to the Congress not later than 120 days after the 
due diligence study is completed.

              Title IV--Military Personnel Authorizations

                     LEGISLATIVE PROVISIONS ADOPTED

                       Subtitle A--Active Forces

End strengths for active forces (sec. 401)
      The House bill contained a provision (sec. 401) that 
would authorize end strengths for the active forces, as 
indicated in the table below:

------------------------------------------------------------------------
                                                  Fiscal year 1998--    
                  Service                   ----------------------------
                                               Request    Recommendation
------------------------------------------------------------------------
Army.......................................      495,000        495,000 
Navy.......................................      390,802        395,000 
Marine Corps...............................      174,000        174,000 
Air Force..................................      371,577        381,000 
                                            ----------------------------
      Total................................    1,431,379      1,445,000 
------------------------------------------------------------------------

      The Senate amendment contained a provision (sec. 401) 
that would authorize active duty end strengths for fiscal year 
1998, as shown below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
Army:..........................                                         
    Total......................      495,000     495,000       485,000  
    Officers...................       80,300    ........        80,300  
Navy:..........................                                         
    Total......................      407,318     390,802       390,802  
    Officers...................       56,265    ........        55,695  
Marine Corps:..................                                         
    Total......................      174,000     174,000       174,000  
    Officers...................       17,978    ........        17,978  
Air Force:.....................                                         
    Total......................      381,000     371,577       371,577  
    Officers...................       74,458    ........        72,732  
------------------------------------------------------------------------

      The House recedes with an amendment that would authorize 
active duty end strengths for fiscal year 1998 as shown below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997         1998         1998    
                                 authorization   request   authorization
------------------------------------------------------------------------
Army...........................      495,000      495,000      495,000  
Navy...........................      407,318      390,802      390,802  
Marine Corps...................      174,000      174,000      174,000  
Air Force......................      381,100      371,577      371,577  
                                ----------------------------------------
      Total....................    1,457,418    1,431,379    1,431,379  
------------------------------------------------------------------------

Permanent end strength levels to support two major regional 
        contingencies (sec. 402)
      The Senate amendment contained a provision (sec. 402) 
that would repeal section 691 of title 10, United States Code, 
as amended by section 402 of the National Defense Authorization 
Act for Fiscal Year 1997.
      The House bill contained a similar provision.
      The House recedes with an amendment that would amend 
section 691 of title 10, United States Code to make the end 
strength floors consistent with the active duty end strengths 
authorized in section 401 of the conference agreement. 
Additionally, the amendment would provide the Army one and one-
half percent flexibility below the floor while retaining one 
percent flexibility for the Navy, Marine Corps and the Air 
Force.
      The conferees are concerned about the strains being 
placed on military personnel and their families. There is an 
apparent incongruence between the number and frequency of 
deployments, the extraordinary pace of operations, and the 
continued pressure through the budget process to reduce 
military personnel levels. The conferees intend to continue to 
examine closely and challenge, as appropriate, any 
recommendations of the Department of Defense, the Quadrennial 
Defense Review, or the National Defense Panel to further reduce 
military personnel. The conferees will be especially vigilant 
for reductions in military personnel levels that appear to be 
driven purely by budget pressures, and not supported by the 
fielding modern systems that require fewer personnel or changes 
in the requirements of the national military strategy.
      The conferees note that section 691 of title 10, United 
States Code, as amended by the conference report, requires the 
Secretary of Defense to fully fund and maintain the end 
strength floors in future budgets.

                       Subtitle B--Reserve Forces

End strengths for Selected Reserve (sec. 411)
      The House bill contained a provision (sec. 411) that 
would authorize end strengths for the Selected Reserve as 
indicated in the table below:

------------------------------------------------------------------------
                                      Fiscal       Fiscal year 1998--   
                                     year 1997 -------------------------
                                    authorized   Request  Recommendation
------------------------------------------------------------------------
ARNG..............................    366,758    366,516       366,516  
USAR..............................    215,179    208,000       208,000  
USNR..............................     96,304     94,294        94,294  
USMCR.............................     42,000     42,000        42,000  
ANG...............................    109,178    107,377       107,377  
USAFR.............................     73,311     73,431        73,431  
Coast Guard.......................      8,000      8,000         8,000  
                                   -------------------------------------
      Total.......................    910,730    899,618       899,618  
------------------------------------------------------------------------

      The Senate amendment contained a provision (sec. 411) 
that wouldauthorize Selected Reserve end strengths for fiscal 
year 1998 as shown below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States.................      366,758     366,516       361,516  
The Army Reserve...............      215,179     208,000       208,000  
The Naval Reserve..............       96,304      94,294        94,294  
The Marine Corps Reserve.......       42,000      42,000        42,000  
The Air National Guard of the                                           
 United States.................      109,178     107,377       108,002  
The Air Force Reserve..........       73,311      73,431        73,542  
The Coast Guard Reserve........        8,000       8,000         8,000  
------------------------------------------------------------------------

      The House recedes with an amendment that would authorize 
Selected Reserve end strengths for fiscal year 1998 as shown 
below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States.................      366,758     366,516       361,516  
The Army Reserve...............      215,179     208,000       208,000  
The Naval Reserve..............       96,304      94,294        94,294  
The Marine Corps Reserve.......       42,000      42,000        42,000  
The Air National Guard of the                                           
 United States.................      109,178     107,377       108,002  
The Air Force Reserve..........       73,311      73,431        73,447  
The Coast Guard Reserve........        8,000       8,000         8,000  
------------------------------------------------------------------------

      The conferees recommend an Army National Guard end 
strength below the 1998 request as a result of the Off-Site 
Review the Army announced on June 5, 1997, in which the active 
Army, the Army Reserve, and the Army National Guard agreed on 
personnel reductions recommended by the Quadrennial Defense 
Review. The conferees recommend increased end strengths for the 
Air National Guard and the Air Force Reserve to accommodate 
retention of the PAA C-130 aircraft at current levels. The 
conferees also recommend an adjustment to the Air Force Reserve 
end strength consistent with the recommendation that would 
prohibit the Secretary of the Air Force from replacing civilian 
base security personnel with active guard and reserve 
personnel. The conferees adjusted the recommended authorization 
of appropriations to reflect these recommendations.
End strengths for Reserves on active duty in support of the Reserves 
        (sec. 412)
      The House bill contained a provision (sec. 412) that 
would authorize the end strengths of the reserves on active 
duty in support of the reserves as indicated in the table 
below. These end strengths are included within the total end 
strengths authorized for the Selected Reserve.

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
ARNG...........................       22,798      22,310        22,310  
USAR...........................       11,729      11,500        11,500  
USNR...........................       16,603      16,136        16,136  
USMCR..........................        2,559       2,559         2,559  
ANG............................       10,403      10,616        10,616  
USAFR..........................          655         963           748  
                                ----------------------------------------
      Total....................       64,747      64,084        63,869  
------------------------------------------------------------------------

      The Senate amendment contained a provision (sec. 412) 
that would authorize full-time support end strengths for fiscal 
year 1998 as shown below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States.................       22,798      22,310        22,310  
The Army Reserve...............       11,729      11,500        11,500  
The Naval Reserve..............       16,603      16,136        16,136  
The Marine Corps Reserve.......        2,559       2,559         2,559  
The Air National Guard of the                                           
 United States.................       10,403      10,616        10,671  
The Air Force Reserve..........          655         963           963  
------------------------------------------------------------------------

      The House recedes with an amendment that would authorize 
full-time support end strengths for fiscal year 1998 as shown 
below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States.................       22,798      22,310        22,310  
The Army Reserve...............       11,729      11,500        11,500  
The Naval Reserve..............       16,603      16,136        16,136  
The Marine Corps Reserve.......        2,559       2,559         2,559  
The Air National Guard of the                                           
 United States.................       10,403      10,616        10,671  
The Air Force Reserve..........          655         963           867  
                                ----------------------------------------
      Total....................       64,747      53,468        53,372  
------------------------------------------------------------------------

      The recommended change to the end strength for reserves 
on active duty in support of the Air Force Reserve results from 
an increase to support the retention of C-130 PAA aircraft at 
the current levels, a reduction from the budget request 
consistent with the recommendation that would prohibit the 
Secretary of the Air Force from replacingcivilian base security 
personnel with active guard and reserve personnel, and an increase to 
accommodate the creation of deployable force protection teams in the 
Air Force Reserve. The conferees adjusted the recommended authorization 
of appropriations to reflect these changes.
      Additionally, the conferees are concerned about a range 
of issues related to management, utilization, and assignment of 
persons participating in the active guard and reserve programs. 
The committees of jurisdiction intend to examine these matters 
during the second session of the 105th Congress.
End strengths for military technicians (dual status) (sec. 413)
      The House bill contained a provision (sec. 413) that 
would authorize military technician end strength as indicated 
by the fiscal year 1998 recommendation below and would require 
future defense budget requests to include a legislative 
provision specifically detailing the end strength of the dual 
status military technicians to be authorized.

------------------------------------------------------------------------
                                                 Fiscal year--          
                                     -----------------------------------
               Service                  1997      1998         1998     
                                       program   request  recommendation
------------------------------------------------------------------------
ARNG................................    23,125    22,991        23,125  
USAR................................     5,503     5,205         5,503  
ANG.................................    22,853    22,574        22,853  
USAFR...............................     9,802     9,622         9,802  
                                     -----------------------------------
      Total.........................    61,283    60,392        61,283  
------------------------------------------------------------------------

      The Senate amendment contained a provision that increased 
above the budget request the authorized levels of military 
technicians in the Air National Guard and in the Air Force 
Reserve to support revised C-130 aircraft levels (sec. 413).
      The Senate recedes.

              Subtitle C--Authorization of Appropriations

Authorization of appropriations for military personnel (sec. 421)
      The House bill contained a provision (sec. 421) that 
would authorize $69,539,862,000 to be appropriated for military 
personnel, an increase of $66,100,000 to the budget request.
      The Senate amendment contained a provision (sec. 421) 
that would authorize $69,244,962,000 to be appropriated to the 
Department of Defense for military personnel.
      The House recedes with an amendment that would authorize 
$69,470,505,000 to be appropriated for military personnel.
      The conferees recommended the following modifications to 
the budget request for military personnel:

Fisal year 1998 Military Personnel Budget Items

                        [In millions of dollars]

Increases:
    Fed. Civilian Military Leave..................................  85.0
    C-130 Force Structure (AFR & ANG).............................   5.4
    Army End Strength Separation Cost.............................  90.0
    Increase Family Separation Pay................................  25.0
    Field Duty Income Protection..................................  18.0
    Increase Hazardous Incentive Pay..............................  22.1
    Dental Pay Incentives.........................................  15.0
    WWII Subsistence Allowances...................................   1.0
    Transfer from Contigency Operations Funds..................... 213.6
      Total Adds.................................................. 475.1
Reductions:
    FY 98 AC End Strength Underexecution Savings.................. 297.5
        Army...................................................... 240.0
        Navy......................................................  10.0
        USMC......................................................   3.6
        Air Force.................................................  43.9
    USAF 15-year Retirement Savings...............................  58.5
    Army NG 5K End Strength Reduction.............................  22.0
    RC Support Total Force........................................  13.0
    Health Professional Scholarship...............................  25.6
    Foreign Currency Fluctuation..................................  62.0
                        -----------------------------------------------------------------
                        ________________________________________________
      Total reductions............................................ 478.6
Net Change from President's Budget................................  -3.5

                   LEGISLATIVE PROVISIONS NOT ADOPTED

Increase in number of members in certain grades authorized to serve on 
        active duty in support of the reserves
      The House bill contained a provision (sec. 414) that 
would authorize increases in the grades of reserve members 
authorized to serve on active duty or on full-time national 
guard duty for the administration of the reserves or the 
national guard.
      The Senate amendment contained no similar provision.
      The House recedes.

                   Title V--Military Personnel Policy

                       ITEMS OF SPECIAL INTEREST

Personal finance training
      The conferees are concerned about reports of personal 
financial difficulties being experienced by military personnel, 
especially lower ranking personnel. The conferees commend the 
Department of Defense and the services for their on-going 
efforts to assist and educate young service members and their 
families in ways and means of successfully managing their 
personal finances. The conferees urge theSecretary of Defense 
and the Secretaries of the Military Departments to review the adequacy 
of their training programs with regard to personal finance training to 
ensure a continuum of training that would provide all service members 
with the basic skills required to manage their personal finances. These 
courses should include checkbook management, credit card management, 
and debt management.
Sequester of Department of Defense funds as a result of a prohibition 
        against military recruiting on campuses of Connecticut State 
        colleges and universities
      The conferees are aware that the Connecticut State 
Legislature and the State Supreme Court have taken steps to 
prohibit military recruiting on the campuses of state funded 
colleges and universities. As a result of this prohibition, and 
in accordance with section 558 of the National Defense 
Authorization Act for Fiscal Year 1995, the Department of 
Defense suspended payment of contract and grant funding to 
these colleges and universities.
      The conferees note that the Connecticut State Legislature 
is not scheduled to meet until February 1998. The Governor has 
pledged that he will ensure the passage of legislation that 
would remedy the matter concerning access of military 
recruiters to Connecticut state institutions of higher 
education.
      In order to provide the State of Connecticut with the 
opportunity to repeal its prohibition, the conferees direct the 
Secretary of Defense not to use funds that would have been used 
for contracts or grants to higher education institutions in 
Connecticut as sources in a reprogramming request nor to submit 
such funds as part of a rescission offer until March 29, 1998. 
If the State of Connecticut has not repealed the prohibition as 
of March 29, 1998, the Secretary of Defense may use the funds 
in a reprogramming or rescission activity.
      Notwithstanding this sequestering of funds, the conferees 
insist that military recruiters be afforded access to 
institutions of higher education or face the consequence of 
loss of federal funds.

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy

Limitation on number of general and flag officers who may serve in 
        positions outside their own service (sec. 501)
      The House bill contained a provision (sec. 501) that 
would limit the number of general and flag officers serving in 
external assignments to no more than 24.5 percent of the total 
number of such officers authorized by Congress.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would establish 
the number of general and flag officers serving in external 
assignments to no more than 26.5 percent of the total number of 
such officers authorized by Congress, and would increase the 
length of time a general or flag officer may serve in a Joint 
Task Force without counting against the limit imposed by this 
provision.
      The conferees agree that the limit is computed in the 
aggregate and not by individual service, and that the 
designation of ``dual-hatted'' positions as external or 
internal service billets shall be in accordance with service 
policies and regulations.
Exclusion of certain retired officers from limitation on period of 
        recall to active duty (sec. 502)
      The House bill contained a provision (sec. 502) that 
would exclude retired military chaplains, health care 
professionals, and officers serving on the American Battle 
Monuments Commission from being subject to the statutory limits 
on the period of time that recalled retirees may serve on 
active duty.
      The Senate amendment contained a similar provision (sec. 
504).
      The Senate recedes with a clarifying amendment.
Clarification of officers eligible for consideration by promotion 
        boards (sec. 503)
      The House bill contained a provision (sec. 503) that 
would clarify that officers serving on active duty and in the 
reserve components may be excluded from consideration from 
promotion to the next higher grade if they are on a promotion 
board report, even if that report had not yet been approved by 
the President.
      The Senate amendment contained a similar provision.
      The House recedes with a clarifying amendment.
Authority to defer mandatory retirement for age of officers serving as 
        chaplains (sec. 504)
      The House bill contained a provision (sec. 504) that 
would repeal the prohibition on Navy chaplains on the retired 
list from serving as the Chief or Deputy Chief of Chaplains in 
the Navy. This provision would also increase the mandatory 
retirement age for the Chief or Deputy Chief of Chaplains in 
the Navy from 62 to 68 years of age. In addition, the provision 
would permit service secretaries to defer the retirement of 
officers serving as chaplains until age 68 if the chaplains 
served in direct support of units and installations.
      The Senate amendment contained a similar provision.
      The Senate recedes with an amendment that would permit 
service secretaries to defer the retirement of chaplains until 
age 68 as long as the secretary considers the deferment in the 
best interest of the service.
Increase in number of officers allowed to be frocked to grades of 
        colonel and Navy captain (sec. 505)
      The Senate amendment contained a provision (sec. 502) 
that would increase the number of officers who may wear the 
grade and insignia of an O-6 (colonels in the Army, Air Force, 
and Marine Corps and captains in the Navy).
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Increased years of commissioned service for mandatory retirement of 
        regular generals and admirals in grades above major general and 
        rear admiral (sec. 506)
      The Senate amendment contained a provision (sec. 505) 
that would increase the mandatory retirement point for three-
star generals and admirals to 38 years of commissioned service 
and for four-star generals and admirals to 40 years of 
commissioned service.
      The House bill contained no similar provision.
      The House recedes.
      The conferees do not intend that all three- and four-star 
officers be allowed to serve to the increased mandatory 
retirement points. The mandatory retirement points were 
increased to permit certain general and flag officers to serve 
long enough to develop and implement the long-term plans and 
policies required of certain senior positions without 
jeopardizing their chances of serving in positions of increased 
responsibility before reaching mandatory retirement. The 
conferees recognize that the improper implementation of this 
provision could have serious effects on the promotion flow 
points to other grades. The services retain all of their 
general and flag officer management tools which enable them to 
manage the career of those officers who become the most senior 
leaders within the military services without negatively 
affecting the career opportunities for junior officers.
Uniform policy for requirement of exemplary conduct by commanding 
        officers and others in authority (sec. 507)
      The Senate amendment contained a provision (sec. 554) 
that would establish, in statute, exemplary standards for 
commanding officers and others in positions of authority and 
responsibility.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Report on the command selection process for District Engineers of the 
        Army Corps of Engineers (sec. 508)
      The Senate amendment contained a provision (sec. 1079) 
that would require the Secretary of Defense to report to the 
Congress concerning the selection and assignment policies and 
procedures pertaining to District Engineers of the Army Corps 
of Engineers.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of the Army to provide the report to the 
Congress.

                 Subtitle B--Reserve Component Matters

Individual Ready Reserve activation authority (sec. 511)
      The House bill contained a provision (sec. 511) that 
would authorize the President, under the Presidential Selective 
Reserve Call-up authority, to recall up to 30,000 members of a 
new category of the Individual Ready Reserve that would consist 
of those personnel, in the military skills designated by the 
Secretary of Defense, who had volunteered for this category 
prior to leaving active duty.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Termination of Mobilization Income Insurance Program (sec. 512)
      The House bill contained a provision (sec. 512) that 
would terminate the Ready Reserve Mobilization Income Insurance 
Program effective upon enactment of the National Defense 
Authorization Act for Fiscal Year 1998.
      The Senate amendment contained a similar provision (sec. 
511).
      The Senate recedes.
Correction of inequities in medical and dental care and death and 
        disability benefits for reserve members who incur or aggravate 
        an illness in the line of duty (sec. 513)
      The House bill contained a provision (sec. 513) that 
would authorize medical and dental care for the family member 
of a reservist who incurs or aggravates an injury or illness in 
the line of duty while serving on active duty for a period of 
30 days or less and whose orders are subsequently modified to 
extend the period of active duty.
      The Senate amendment contained a similar provision (sec. 
661).
      The Senate recedes with a clarifying amendment.
Authority to permit non-unit assigned officers to be considered by 
        vacancy promotion board to general officer grades (sec. 514)
      The House bill contained a provision (sec. 515) that 
would authorize the Secretary of the Army to permit officers 
not assigned to units of the Selected Reserve to compete for 
promotion to brigadier general and major general within the 
same promotion board process as officers who are assigned to 
units.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Prohibition on use of Air Force Reserve AGR personnel for Air Force 
        base security functions (sec. 515)
      The House bill contained a provision (sec. 517) that 
would prohibit the Secretary of the Air Force from using 
members of the Air Force Reserve who are on active duty in 
support of the reserves (known as active guard and reserve or 
AGR personnel) to perform force protection, base security, or 
security police functions at an Air Force facility in the 
United States until six months after the Secretary submits a 
report to the Congress on the use of AGR personnel in these 
functions.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would prohibit 
replacing security related military technician or civilian 
positions at the Air Force Reserve bases with AGR personnel 
during fiscal year 1998.
      The conferees view the Air Force proposal to provide base 
security at four Air Force Reserve bases in the United States 
as an attempt to eliminate civilian technician positions. Use 
of the AGRs for this security mission would replace 72 Air 
Reserve technicians and 136 Department of Defense civilians now 
providing base security at these bases. For these reasons, the 
conferees would prohibit the Secretary of the Air Force from 
utilizing AGRs for base security at United States bases during 
fiscal year 1998. In another provision in the conference 
report, the conferees direct the Secretary of Defense to submit 
a report to the Congress on the feasibility and advisability of 
converting all active guard and reserve positions to military 
technicians. Until this study is complete, any conversion of 
military technician positions to active guard and reserve would 
be premature.
Involuntary separation of reserve officers in an inactive status (sec. 
        516)
      The Senate amendment contained a provision (sec. 512) 
that would permit the President to discharge or retire a 
reserve commissioned officer in an inactive status who cannot 
or will not retire.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees expect that the service secretaries 
exercise prudence and discretion when they use this authority. 
The decision to involuntarily discharge or retire any officer 
is one that must be reached only after careful deliberation. 
The conferees do not intend that this authority be used 
indiscriminately or to limit the career potential of individual 
officers without compelling justification.
Federal status of service by National Guard members as honor guards at 
        funerals of veterans (sec. 517)
      The Senate amendment contained a provision (sec. 514) 
that would permit National Guard members who serve on funeral 
details for veterans of the armed forces to receive credit as a 
period of drill or training otherwise required.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees expect that participation of National Guard 
personnel in a funeral detail or honor guard will be strictly 
voluntary and that this authority will not be used as a basis 
for justifying force structure, end strength, or 
appropriations.

                    Subtitle C--Military Technicians

Authority to retain on the reserve active-status list until age 60 
        military technicians in the grade of brigadier general (sec. 
        521)
      The House bill contained a provision (sec. 521) that 
would restore the authority that existed prior to the enactment 
of the Reserve Officer Personnel Management Act (ROPMA) that 
permitted the Secretaries of the Army and Air Force to retain 
brigadier general military technicians on the active-status 
list up to age 60.
      The Senate amendment contained a similar provision (sec. 
513).
      The Senate recedes.
Military technicians (dual status) (sec. 522)
      The House bill contained a provision (sec. 522) that 
would define a military technician (dual status) as a federal 
civilian employee who is hired in accord with titles 5 or 32, 
United States Code, and who, as a condition of federal civilian 
employment, must maintain military membership in the Selected 
Reserve, and who also must be assigned to a position as a 
technician in the administration and training of the Selected 
Reserve, or to a position in the maintenance and repair of 
supplies or equipment issued to the Selected Reserve or armed 
forces and require that, unless exempted by law, all military 
technicians hired on or after December 1, 1995, (the date of 
enactment of Public Law 104-61) would be required to maintain 
military membership in the Selected Reserve unit by which they 
are employed as a military technician, or in a unit they are 
employed as a military technician to support.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Non-dual status military technicians (sec. 523)
      The House bill contained a provision (sec. 523) that 
would cap the numbers of non-dual status technicians permitted 
in each of the reserve components in fiscal year 1998, and 
require the service secretaries in future years to reduce the 
number of non-dual status technicians by at least 10 percent 
per year.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the number of non-dual status technicians in each component, 
and require the Secretary of Defense to report to the Congress, 
not later than 90 days after enactment, the actual number of 
non-dual status technicians in each component, and to submit to 
Congress, not later than 180 days after enactment, a plan to 
ensure that by the end of fiscal year 2007, and thereafter, all 
military technician positions are only occupied by military 
technicians (dual status).
Report on feasibility and desirability of conversion of AGR personnel 
        to military technicians (dual status) (sec. 524)
      The House bill contained a provision (sec. 524) that 
would require the Secretary of Defense to report to the 
Congress on the feasibility and desirability of converting 
active guard and reserve personnel to dual status military 
technicians.
      The Senate amendment contained no similar provision.
      The Senate recedes.

  Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                               Attrition

Reform of military recruiting systems (sec. 531)
      The House bill contained a provision (sec. 531) that 
would require the Secretary of Defense to undertake a series of 
department-wide reforms to improve the efficiency and 
effectiveness of military recruiting.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
the use of pre-enlistment waivers among those codes and systems 
to be revised and updated.
Improvements in medical prescreening of applicants for military service 
        (sec. 532)
      The House bill contained a provision (sec. 532) that 
would direct the Secretary of Defense to undertake a number of 
reforms, to include:
            (1) Requiring each applicant for military service 
        to provide the name of the applicant's medical insurer, 
        the names of past medical providers, and a release to 
        obtain the applicant's medical records;
            (2) Revising the questions asked of applicants to 
        tie the questions more directly to conditions that most 
        frequently result in medical separations;
            (3) Assigning to a contractor or agency other than 
        the Military Entrance Processing Command (MEPCOM) the 
        responsibility for evaluating medical conditions of 
        recruits that are missed during MEPCOM's accession 
        processing; and
            (4) Requiring all applicants for military service 
        be tested for use of illegal drugs at the MEPCOM 
        station.
        The Senate amendment contained no similar provision.
        The Senate recedes with a clarifying amendment.
Improvements in physical fitness of recruits (sec. 533)
      The House bill contained a provision (sec. 533) that 
would direct the Secretary of Defense to undertake a range of 
measures to improve the level of physical fitness of new 
recruits prior to the start of basic training, including the 
use of incentives, monetary and otherwise, for new recruits in 
the delayed entry program to voluntarily participate in 
supervised conditioning activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
      The conferees expect that any activities developed to 
improve the physical fitness of recruits will be organized, 
formally scheduled, and supervised by personnel who have been 
appropriately trained to conduct physical readiness training. 
The conferees do not intend that recruits will be afforded 
unescorted, unsupervised access to military fitness facilities.

              Subtitle E--Military Education and Training

                   Part I--Officer Education Programs

Requirement for candidates for admission to United States Naval Academy 
        to take oath of allegiance (sec. 541)
      The House bill contained a provision (sec. 543) that 
would codify what now is implemented by policy--that persons 
seeking admission to the United States Naval Academy take and 
subscribe to an oath of allegiance to the United States as a 
requirement for admission. This provision would make the 
requirement for an oath consistent in law for all three service 
academies.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Service academy foreign exchange program (sec. 542)
      The House bill contained a provision (sec. 546) that 
would authorize the Air Force Academy to enter into agreements 
with foreign governments in order to carry out a military 
academy foreign exchange program.
      The Senate amendment contained a provision (sec. 521) 
that would authorize exchange programs at each of the service 
academies.
      The Senate recedes with an amendment that would authorize 
exchange programs at all three service academies and would 
establish cost and enrollment limits.
Reimbursement of expenses incurred for instruction at service academies 
        of persons from foreign countries (sec. 543)
      The House bill contained a provision (sec. 544) that 
would constrain the Secretary of Defense's waiver authority for 
the cost of attendance for international students entering the 
service academies after the date of enactment to no more than 
25 percent of the per-person cost of attendance by an 
international student, but would permit the Secretary, in 
exceptional cases, to waive more than 25 per cent of the cost 
for up to five international students at each of the service 
academies, and would recommend a reduction in fiscal year 1998 
of $4.2 million in Defense-wide Operations and Maintenance 
accounts and a $1.0 million reduction in the amounts authorized 
for military personnel in the Army, Navy and Air Force.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would establish 
the amount of the cost of attendance for international students 
at the service academies permitted to be waived at 35 percent, 
but would permit the Secretary to waive more than 35 per cent 
of the cost for up to five international students at each of 
the service academies, would make the restrictions effective 
for students entering the academies after May 1998, and would 
restore the reductions to the military personnel and operations 
and maintenance accounts.
Continuation of support to senior military colleges (sec. 544)
      The House bill contained a provision (sec. 567) that 
would require that the Secretary of Defense continue support to 
the senior military colleges (Texas A&M University, Norwich 
University, TheVirginia Military Institute, The Citadel, 
Virginia Polytechnic Institute and State University, and North Georgia 
College and State University) in three principal ways: 1) retention of 
the long-standing commitment by the Army to provide active duty service 
for all graduates of the colleges who desire it and who are recommended 
for it by their respective professors of military science; 2) 
participation by the active duty personnel assigned to the Reserve 
Officers' Training Corps (ROTC) detachments at each college in the 
leadership, academic and military development of the corps of cadets, 
beyond ROTC programs; and 3) continued operation of the ROTC program at 
each of the colleges.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would ensure 
active duty service for graduates of the senior military 
colleges who request such service, who are medically and 
physically qualified, and are recommended by the professor of 
military science. Additionally, the amendment would ensure 
continued operation of the ROTC program at each of the senior 
military colleges.
Report on making United States nationals eligible for participation in 
        Senior Reserve Officers' Training Corps (sec. 545)
      The House bill contained a provision (sec. 572) that 
would require the Secretary of Defense to report to the 
Congress on the utility of permitting United States nationals 
to participate in the Senior Reserve Officers' Training Corps.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Coordination of establishment and maintenance of Junior Reserve 
        Officers' Training Corps units to maximize enrollment and 
        enhance efficiency (sec. 546)
      The Senate amendment contained a provision (sec. 525) 
that would require the Secretary of Defense to coordinate the 
establishment and maintenance of Junior Reserve Officers' 
Training Corps in order to maximize enrollment and to take into 
consideration openings of new schools and consolidation of 
schools.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
requirement from the Secretary of Defense to the secretaries of 
the military departments and delete the requirement that the 
Secretary of Defense seek additional funding from the local 
educational agencies.

                    Part II--Other Education Matters

United States Naval Postgraduate School (sec. 551)
      The House bill contained a provision (sec. 545) that 
would amend the current authority governing admittance of 
civilians at the Naval Postgraduate School, and create new 
authority to admit enlisted personnel to the school. Thus, the 
section would authorize the Secretary of the Navy to admit 
civilians on a space-available basis, with reimbursement being 
required either on an in-kind basis or on a cost-reimbursable 
basis, and would also authorize enlisted members to attend 
courses on a space-available basis.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit 
enlisted personnel to attend courses on a space-available 
basis.
Community College of the Air Force (sec. 552)
      The House bill contained a provision (sec. 573) that 
would permit enlisted members of the Army, Navy, or Marine 
Corps who are assigned as instructors in Air Force technical 
schools and enlisted students in Air Force training programs to 
participate in and receive associate degrees through the 
Community College of the Air Force.
      The Senate amendment contained a provision (sec. 522) 
that would permit enlisted members of the Army, Navy, or Marine 
Corps who are assigned as instructors in Air Force technical 
schools to participate in and receive associate degrees through 
the Community College of the Air Force.
      The House recedes with a clarifying amendment.
Preservation of entitlement to educational assistance of members of the 
        Selected Reserve serving on active duty in support of a 
        contingency operation (sec. 553)
      The Senate amendment contained a provision (sec. 523) 
that would ensure that members of the Selected Reserve who are 
ordered to active duty in support of a contingency operation, 
and required to discontinue a course of study under the GI Bill 
benefit, would not have those months charged against their GI 
Bill entitlement.
      The House bill contained no similar provision.
      The House recedes.

               Part III--Training of Army Drill Sergeants

Reform of Army drill sergeant selection and training process (sec. 556)
      The House bill contained a provision (sec. 542) that 
would require the Secretary of the Army to institute a number 
of reforms in the processes by which drill sergeants are 
selected and trained.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Training in human relations matters for Army drill sergeant trainees 
        (sec. 557)
      The House bill contained a provision (sec. 547) that 
would require the Secretary of the Army to expand the human 
relations instruction now provided to drill sergeant trainees 
to at least two days of instruction.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

 Subtitle F--Commission on Military Training and Gender-Related Issues

Commission on Military Training and Gender-Related Issues (secs. 561-
        566)
      The House bill contained a provision (sec. 541) that 
would require the establishment of a panel to review the basic 
training programs of the Army, Navy, Air Force, and Marine 
Corps, and to make recommendations for improvements to these 
programs.
      The Senate amendment contained a provision (sec. 552) 
that would establish an 11-member commission to study issues 
related to gender integration in the military services.
      The House recedes with an amendment that would integrate 
the scope of the independent panel into that of the commission, 
and reduce the membership of the commission to 10, five of 
which would be appointed by the chairman and ranking member of 
the Committee on Armed Services of the Senate and the remaining 
five appointed by the chairman and ranking member of the 
National Security Committee of the House of Representatives.
      The House bill contained a provision (sec. 548) that 
would require each of the secretaries of military departments 
to submit a report to the Committee on Armed Services of the 
Senate and the National Security Committee of the House of 
Representatives, within 180 days after the date of enactment, 
on gender-segregated basic training.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would 
incorporate the information required by the report into the 
provision that would establish a commission for review of 
gender integration in the military departments.

              Subtitle G--Military Decorations and Awards

Purple Heart to be awarded only to members of the Armed Forces (sec. 
        571)
      The House bill contained a provision (sec. 552) that 
would limit eligibility for the award of the Purple Heart to 
members of the armed forces.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Eligibility for Armed Forces Expeditionary Medal for participation in 
        Operation Joint Endeavor or Operation Joint Guard (sec. 572)
      The House bill contained a provision (sec. 553) that 
would require the Secretary of Defense to designate 
participation by service members in Operation Joint Endeavor or 
Operation Joint Guard in the Republic of Bosnia and Herzegovina 
as meeting the requirements for award of the Armed Forces 
Expeditionary Medal.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Clarification of eligibility of members of Ready Reserve for award of 
        service medal for heroism (sec. 574)
      The Senate amendment contained a provision (sec. 531) 
that would authorize members of the Ready Reserve to be awarded 
the service medal for heroism on the same basis as active duty 
service members.
      The House bill contained no similar provision.
      The House recedes.
One-year extension of period for receipt of recommendations for 
        decorations and awards for certain military intelligence 
        personnel (sec. 575)
      The Senate amendment contained a provision (sec. 533) 
that would extend, by one year, the time in which military 
intelligence personnel could apply for consideration of an 
award for service in the Cold War era.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Eligibility of certain World War II military organizations for award of 
        unit decorations (sec. 576)
      The Senate amendment contained a provision (sec. 534) 
that would authorize the service secretaries to award a unit 
decoration to any unit or other organization of the armed 
forces of the United States that supported the planning or 
execution of combat operations during World War II.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Retroactivity of Medal of Honor special pension (sec. 577)
      The Senate amendment contained a provision (sec. 535) 
that would authorize retroactive payment of the special pension 
to which recipients of the Medal of Honor are entitled to those 
African-American World War II soldiers who were awarded the 
Medal of Honor as a result of legislation in the National 
Defense Authorization Act for Fiscal Year 1996.
      The House bill contained no similar provision.
      The House recedes.

                  Subtitle H--Military Justice Matters

Amendments to the Uniform Code of Military Justice (secs. 581 and 582)
      The House bill contained two provisions (secs. 569 and 
570) that would amend the Uniform Code of Military Justice. 
Section 569 would authorize a general court-martial to adjudge 
a sentence of confinementfor life without eligibility for 
parole. Section 570 would limit to the President or the Secretary 
concerned, without delegation, the authority to grant parole to an 
offender serving a life sentence on appeal from a denial of parole.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                       Subtitle I--Other Matters

Sexual harassment investigations and reports (sec. 591)
      The Senate amendment contained a provision (sec. 553) 
that would establish rigorous reporting requirements and time 
lines for completing investigations into allegations of sexual 
harassment within the armed services.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Sense of the Senate regarding study of matters relating to gender 
        equity in the Armed Forces (sec. 592)
      The Senate amendment contained a provision (sec. 551) 
that would express the sense of the Congress that the 
Comptroller General of the United States should conduct a study 
on any inequality, or perception of inequality, in the 
treatment of men and women in the armed forces and report to 
Congress within one year of enactment of the National Defense 
Authorization Act for Fiscal Year 1998.
      The House bill contained no similar provision.
      The House recedes with an amendment that would express 
the sense of the Senate that the Comptroller General of the 
United States should conduct a study on any inequality, or 
perception of inequality, in the treatment of men and women in 
the armed forces and report to the Senate within one year of 
enactment of the National Defense Authorization Act for Fiscal 
Year 1998.
Authority for personnel to participate in management of certain non-
        Federal entities (sec. 593)
      The House bill contained a provision (sec. 563) that 
would authorize service secretaries to approve on a case-by-
case basis the limited service of military and civilian 
personnel as directors, trustees, or officers of a military 
welfare society, such as Army Emergency Relief, or other 
designated entities.
      The Senate amendment contained a similar provision (sec. 
555).
      The Senate recedes with an amendment that would require 
that the approved non-Federal agencies be limited to not-for-
profit agencies and would not permit participation as part of 
the service member's official duties.
      The conferees support the participation of military and 
civilian personnel in the military welfare agencies and other 
non-Federal, not-for-profit entities without compensation and 
at no cost to the Federal Government.
Treatment of participation of members in Department of Defense civil 
        military programs (sec. 594)
      The House bill contained a provision (sec. 566) that 
would prohibit the secretary of a military department from 
requiring or requesting a service member to submit, for 
consideration by a selection board, evidence of the service 
member's support and service to non-Department of Defense 
organizations. In addition, the section would prohibit 
promotion and selection boards from using involvement in civil-
military and community support programs as a special evaluation 
criteria.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit 
consideration by promotion boards of voluntarily submitted 
information. The conferees recognize that there are currently 
precise policies governing communication with and information 
available to selection boards.
Comptroller General study of Department of Defense civil military 
        programs (sec. 595)
      The House bill contained a provision (sec. 565) that 
would require the Comptroller General to conduct a study to 
evaluate the civil military programs of the military services.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Establishment of public affairs specialty in the Army (sec. 596)
      The House bill contained a provision (sec. 571) that 
would establish public affairs as a special branch of the Army.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would establish 
a public affairs speciality within the Army.
Grade of defense attache in France (sec. 597)
      The Senate amendment contained a provision (sec. 557) 
that would require the Secretary of Defense and Chairman of the 
Joint Chiefs of Staff to ensure that the defense attache in 
France is an officer who holds or is promotable to the grade of 
brigadier general or, in the case of the Navy, rear admiral 
(lower half).
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Report on crew requirements of WC-130J aircraft (sec. 598)
      The House bill contained a provision (sec. 564) that 
would preclude navigator and other manpower requirements of 
units engaged in eyewall penetration of tropical cyclones from 
being reduced below the requirements established as of October 
1, 1997 until the end of a six-month period after the Secretary 
of the Air Force reports to the Congress on the manpower 
requirements for WC-130J aircraft.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
the prohibition on reducing personnel levels in WC-130J units, 
and would add a requirement that the Secretary of the Air Force 
submit a plan to the Congress for assisting personnel in these 
units transition to other units or job specialities.
Improvement of missing persons authorities applicable to Department of 
        Defense (sec. 599)
      The House bill contained a provision (sec. 568) that 
would restore provisions pertaining to U.S. prisoners of war, 
those missing in action, and unaccounted for persons, enacted 
in the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106) and subsequently repealed by the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201). Specifically, the section would expand the scope of 
current law by:
            (1) Making it applicable to Department of Defense 
        civilians and contractors accompanying armed forces in 
        the field;
            (2) Establish a 48-hour suspense for the 
        commander's initial report of a missing person's 
        status;
            (3) Require the theater component commander's 
        involvement in the initial assessment of a missing 
        person's status;
            (4) Require the status of persons who were last 
        known alive to be reviewed every 3 years for 30 years 
        following initial report;
            (5) Re-establish criminal penalties for the knowing 
        and willful withholding of information from a missing 
        person's file;
            (6) Restore the requirement that a status review 
        board (when making determinations of death) must 
        provide a description of the location of body, if 
        recovered, and, if the body is not identifiable, a 
        certification by ``a practitioner of an appropriate 
        forensic science that the body recovered is that of the 
        missing person;'' and
            (7) Restore the ability of certain persons to 
        request status reviews of a limited number of Korean 
        War cases.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would expand 
current law:
            (1) Making it applicable to certain Department of 
        Defense civilians and contractors in direct support of 
        or accompanying armed forces in the field;
            (2) Require that an advisory copy of a missing 
        person report be provided to the theater component 
        commander;
            (3) Require that if a body is recovered, and is not 
        identifiable by visual means, a certification by a 
        forensic pathologist that the body recovered is that of 
        the missing person is required before the status may be 
        changed;
            (4) For pre-enactment cases, define ``new 
        information'' as information found or received by the 
        primary next of kin, member of the immediate family or 
        a previously designated person or information that is 
        identified in records of the United States that is 
        relevant to the case of one or more unaccounted for 
        persons, and require that such information be credible 
        before a new file is created;
            (5) Require that the identity of the counsel for 
        the missing person be made known to the primary next of 
        kin or the previously designated person, and permit the 
        primary next of kin or the previously designated person 
        to provide information to the counsel of the missing 
        person in connection with the initial review board;
            (6) Require that an extract of any debriefing 
        report be placed in the file of every missing person 
        mentioned in the report; require that an extract of 
        such debriefing reports be made available to family 
        members of missing persons, or if the reports are 
        withheld, notify the family that such information 
        exists; and
            (7) Require that, if as allowed by law, classified 
        information is withheld from the file of a missing 
        person, the notice of that withholding be made 
        reasonably available to the families of the missing 
        person.

                   Legislative Provisions Not Adopted

Time-in-grade requirements for reserve commissioned officers retired 
        during the drawdown period
      The House bill contained a provision (sec. 514) that 
would authorize the secretaries of the military departments to 
reduce the required time in grade for a reserve officer to 
retire in the highest grade held from three to not less than 
two years.
      The Senate amendment contained no similar provision.
      The House recedes.
Grade requirement for officers eligible to serve on involuntary 
        separation boards
      The House bill contained a provision (sec. 516) that 
would reduce the grade required for officer separation board 
members in the reserve components from 0-6 and above to 0-5 and 
above.
      The Senate amendment contained no similar provision.
      The House recedes.
Study of new decorations for injury or death in line of duty
      The House bill contained a provision (sec. 551) that 
would require the Secretary of Defense, in cooperation with the 
secretaries of the military departments and the Secretary of 
the Treasury with regard to the Coast Guard, to determine the 
appropriate name, policy, award criteria, and design for two 
new decorations.
      The Senate amendment contained no similar provision.
      The House recedes.
Suspension of temporary early retirement authority
      The House bill contained a provision (sec. 561) that 
would suspend the authorization for the early retirement 
program during fiscal year 1998.
      The Senate amendment contained no similar provision.
      The House recedes.
      Recognizing the savings that can be achieved by using 
this authority early in the year, the conferees reduced the 
amount authorized to be appropriated to the Air Force for this 
program by $49.0 million.
Treatment of educational accomplishments of National Guard ChalleNGe 
        program participants
      The House bill contained a provision (sec. 562) that 
would deem a general education diploma certificate achieved as 
a result of the individual's participation in a National Guard 
ChalleNGe program the same as a high school diploma for the 
purpose of determining the eligibility of the person for 
enlistment in the armed forces.
      The Senate amendment contained no similar provision
      The House recedes.
Repeal of certain staffing and safety requirements for the Army Ranger 
        Training Brigade
      The Senate amendment contained a provision (sec. 524) 
that would repeal section 4303 of title 10, United States Code, 
which specified minimum manning levels for the Ranger Training 
Brigade and required the establishment of training safety 
cells.
      The House bill contained no similar provision.
      The Senate recedes.

          Title VI--Compensation and Other Personnel Benefits

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

Increase in basic pay for fiscal year 1998 (sec. 601)
      The House bill contained a provision (sec. 601) that 
would provide a 2.8 percent military pay raise as proposed in 
the President's budget request.
      The Senate amendment contained a provision (sec. 601) 
that would waive section 1009 of title 37, United States Code, 
and increase the rates of basic pay for members of the 
uniformed services by 2.8 percent effective January 1, 1998.
      The Senate recedes with a clarifying amendment.
Reform of basic allowance for subsistence (sec. 602)
      The House bill contained a provision (sec. 603) that 
would re-engineer the basic allowance for subsistence (BAS) by 
providing the Secretary of Defense greater flexibility to 
continue to pay BAS when rations in kind are available; index 
the annual growth in the subsistence allowance to increases in 
the cost of the moderate food plan of the U.S. Department of 
Agriculture; and repeal the current process of increasing the 
basic allowance for subsistence at the same rate as the 
military pay raise.
      The Senate amendment contained three provisions (sec. 
611-613) that would reform the BAS for all members of the 
uniformed services by linking the BAS for officers and enlisted 
members to the Department of Agriculture food plan indexes; 
provide a transition period during which annual increases in 
the current enlisted allowance would be limited to one percent 
until such time as the transition period allowance equals the 
new Department of Agriculture based allowance; and provide a 
new, partial subsistence allowance for junior enlisted 
personnel who are not currently eligible for any subsistence 
allowance.
      The House recedes with an amendment that would merge the 
provisions into one.
Consolidation of basic allowance for quarters, variable housing 
        allowance, and overseas housing allowances (sec. 603)
      The House bill contained a provision (sec. 604) that 
would consolidate the basic allowance for quarters and the 
variable housing allowance; would authorize $35.0 million to 
reduce out-of-pocket housing costs for individuals receiving 
Basic Allowance for Quarters; would index the annual growth in 
housing allowances to increases in the national average monthly 
cost of housing; repeal the current process of increasing the 
basic allowance for quarters at the same rate as the military 
pay raise; incorporate the authorities for overseas station 
housing allowance and family separation housing allowance; and 
would protect service members from reductions in the rate of 
overseas station allowance not attributable to fluctuations in 
foreign currency rates, so long as the member's housing costs 
have not been reduced.
      The Senate amendment contained six provisions (sec. 616, 
617, 619-622) that would adopt a single, price-based housing 
allowance based on a national index of housing costs and 
authorize a housing allowance that would vary with pay grade 
and dependency status and would be based on local private 
sector housing costs.
      The Senate recedes with an amendment that would merge the 
provisions into one, except that the conferees did not agree to 
authorize $35.0 million to reduce out-of-pocket housing costs.
Revision of authority to adjust compensation necessitated by reform of 
        subsistence and housing allowances (sec. 604)
      The Senate amendment contained a provision (sec. 626) 
that would revise the authority to adjust compensation of 
uniformed services personnel when federal civilian pay is 
adjusted.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees direct the Secretary of Defense to study 
the need for and cost effectiveness of establishing a locality 
pay system for military personnel that is comparable to the 
system in place for federal civilian employees, and to report 
the results of the study to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House 
of Representatives, not later than March 31, 1998.
Protection of total compensation of members while performing certain 
        duty (sec. 605)
      The House bill contained a provision (sec. 602) that 
would repeal the legislative link between military and federal 
civilian pay raises and would require military pay raises to be 
independently calculated using the Employment Cost Index and 
would ensure that total pay and allowances of a service member 
will not be reduced when assigned to field conditions at home 
station or temporary duty away from home station.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would ensure 
that the total pay and allowances of a service member will not 
be reduced when the service member is assigned to field duty at 
home station or to temporary duty away from home station and 
would strike the remainder of the provision.

           Subtitle B--Bonuses and Special and Incentive Pays

One-year extension of certain bonuses and special pay authorities for 
        reserve forces (sec. 611)
      The House bill contained a provision (sec. 611) that 
would extend the authority for the selected reserve 
reenlistment bonus, the selected reserve enlistment bonus, the 
selected reserve affiliation bonus, the ready reserve 
enlistment and reenlistment bonus, and the prior service 
enlistment bonus until September 30, 1999.
      The Senate amendment contained a provision (sec. 631) 
that would extend the authority to pay the special pay for 
critically short wartime health specialists in the Selected 
Reserve, the Selected Reserve reenlistment bonuses, the 
Selected Reserve enlistment bonuses, the special pay for 
enlisted members assigned to certain high priority units in the 
Selected Reserve, the Selected Reserve affiliation bonus, the 
Ready Reserve enlistment and reenlistment bonus, the repayment 
of loans for certain health professionals who serve in the 
Selected Reserve, and the prior service enlistment bonus until 
September 30, 1999.
      The House recedes with a clarifying amendment.
One-year extension of certain bonuses and special pay authorities for 
        nurse officer candidates, registered nurses, and nurse 
        anesthetists (sec. 612)
      The House bill contained a provision (sec. 612) that 
would extend the authority for the nurse officer candidate 
accession program, the accession bonus for registered nurses, 
and the incentive special pay for nurse anesthetists until 
September 30, 1999.
      The Senate amendment contained a provision (sec. 632) 
that would extend the authority to pay certain bonuses and 
special pays for nurse officer candidates, registered nurses, 
and nurse anesthetists until September 30, 1999.
      The Senate recedes.
One-year extension of authorities relating to payment of other bonuses 
        and special pays (sec. 613)
      The House bill contained a provision (sec. 613) that 
would extend the authority for the aviation officer retention 
bonus, special pay for health care professionals who serve in 
the selected reserve in critically short wartime specialties, 
reenlistment bonus for active members, enlistment bonuses for 
critical skills, special pay for enlisted members of the 
selected reserve assigned to certain high priority units, 
special pay for nuclear qualified officers extending the period 
of active service, and nuclear career accession bonus to 
September 30, 1999. The provision would also extend the 
authority for repayment of educational loans for certain health 
professionals who serve in the selected reserve and the nuclear 
career annual incentive bonus until October 1, 1999.
      The Senate amendment contained a provision (sec. 633) 
that would extend the authority to pay the aviation officer 
retention bonus, the reenlistment bonus for active members, the 
enlistment bonuses for critical skills, the special pay for 
nuclear qualified officers extending the period of active 
service, the nuclear career accession bonus, and the nuclear 
career annual incentive bonus until September 30, 1999.
      The Senate recedes with a clarifying amendment.
Increase in minimum monthly rate of hazardous duty incentive pay for 
        certain members (sec. 614)
      The House bill contained a provision (sec. 614) that 
would increase the amount paid to service members engaged in 
certain hazardous duties to $150 a month; would increase the 
minimum amount paid to service members engaged in non-aviator 
aircrew duties and air weapons controller aircrew duties to 
$150 a month; and would increase the amount paid to service 
members engaged in free fall parachute jumping to $225 a month.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      To provide for the increases, the conferees recommend an 
increase of $22.1 million in the military personnel accounts.
Increase in aviation career incentive pay (sec. 615)
      The Senate amendment contained a provision (sec. 634) 
that would increase the aviation career incentive pay for 
aviators with more than 14 years of service. The recommended 
provision would be effectiveOctober 1, 1998.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
effective date to January 1, 1999.
Modification of aviation officer retention bonus (sec. 616)
      The Senate amendment contained a provision (sec. 635) 
that increase the maximum amount of the aviation officer 
continuation pay from $12,000 to $25,000.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
required years of commitment to receive a bonus.
Availability of multiyear retention bonus for dental officers (sec. 
        617)
      The House bill contained a provision (sec. 615) that 
would amend section 301d of title 37, United States Code, to 
give the Secretary of Defense discretionary authority to 
provide multi-year contracts to dental officers, particularly 
critical specialists. These contracts would obligate dentists 
for up to four years and would enhance retention and management 
of the dental corps. The provision would require that dentists 
with a specialty in oral and maxillofacial surgery with at 
least eight years of service be automatically eligible for 
these contracts.
      The Senate amendment contained a provision (sec. 636) 
that would authorize multiyear retention bonuses for dental 
officers similar to those authorized for medical officers.
      The Senate recedes.
Increase in variable and additional special pays for certain dental 
        officers (sec. 618)
      The House bill contained a provision (sec. 616) that 
would amend section 302b(a) of title 37, United States Code, to 
increase special pay for dental officers with eight or more 
years of service.
      The Senate amendment contained a provision (sec. 637) 
that would increase the amount of the special pay for dental 
officers of the armed forces and modify the number of years of 
service required to qualify for certain levels of the special 
pay.
      The Senate recedes.
Availability of special pay for duty at designated hardship duty 
        locations (sec. 619)
      The House bill contained a provision (sec. 617) that 
would authorize a hardship duty pay for service members serving 
in locations that present quality of life hardships up to a 
maximum of $300 per month.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Definition of sea duty for purposes of career sea pay (sec. 620)
      The House bill contained a provision (sec. 651) that 
would authorize duty on a ship-based staff to be designated as 
sea duty for the purpose of qualifying for career sea pay.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Modification of Selected Reserve reenlistment bonus (sec. 621)
      The House bill contained a provision (sec. 618) that 
would restructure the payment options available to the 
secretaries of the military departments for the Selected 
Reserve reenlistment bonus, and would extend the period of 
eligibility for the bonus from members with less than 10 years 
total military service to members with less than 14 years 
service.
      The Senate amendment contained a provision (sec. 638) 
that would provide service secretaries discretionary authority 
to determine the annual payment amounts for reserve 
reenlistment bonuses. The initial payment would be limited to 
not more than one-half of the total bonus. The recommended 
provision would also permit a member to receive a bonus when 
electing a three-year term of reenlistment twice in lieu of a 
single six-year term.
      The House recedes with a clarifying amendment.
Modification of Selected Reserve enlistment bonus for former enlisted 
        members (sec. 622)
      The House bill contained a provision (sec. 619) that 
would restructure the payment options available to the 
secretaries of the military departments for the Selected 
Reserve enlistment bonus for former enlisted members, and would 
extend the period of eligibility for the bonus from members 
with less than 10 years total military service to those with 
less than 14 years service.
      The Senate amendment contained a provision (sec. 639) 
that would modify the Selected Reserve prior service enlistment 
bonus to permit a member to receive a bonus for a three-year 
term of enlistment and a subsequent three-year reenlistment in 
lieu of a single six-year enlistment option.
      The Senate recedes with a clarifying amendment.
Expansion of reserve affiliation bonus to include Coast Guard Reserve 
        (sec. 623)
      The House bill contained a provision (sec. 623) that 
would extend the authority to pay a bonus for separating active 
duty personnel who agree to serve in a reserve unit to the 
Coast Guard Reserve.
      The Senate amendment contained a similar provision.
      The House recedes with a clarifying amendment.
Increase in special pay and bonuses for nuclear-qualified officers 
        (sec. 624)
      The Senate amendment contained a provision (sec. 640) 
that would increase the maximum authorized rate for three 
nuclear special pays and bonuses for nuclear qualified officers 
of the Navy.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Provision of bonuses in lieu of special pay for enlisted members 
        extending tours of duty at designated locations overseas (sec. 
        625)
      The House bill contained a provision (sec. 620) that 
would authorize the payment of a bonus, as an alternative to a 
monthly special pay, to enlisted members who extend their tours 
of duty overseas.
      The Senate amendment contained a provision (sec. 641) 
that would authorize the service secretaries to pay a lump sum 
payment of up to $2,000 per year to qualified enlisted members 
who extend their duty at designated overseas locations. The 
recommended provision:
            (1) authorizes the service secretaries to fix the 
        rate of payment as of the date of the extension 
        agreement is accepted by the service;
            (2) establishes the government's ability to recover 
        payments for which service agreements are not 
        completed; and
            (3) removes the entitlement to such payment for 
        those members who elect to receive government-funded 
        rest and recuperative absences or transportation.
      The House recedes with a clarifying amendment.
Increase in amount of family separation allowance (sec. 626)
      The House bill contained a provision (sec. 621) that 
would increase the amount of family separation allowance paid 
to service members to $100 a month.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      To provide for the increase, the conferees agree to 
authorize an increase of $25.0 million in the military 
personnel accounts.
Deadline for payment of Ready Reserve muster duty allowance (sec. 627)
      The House bill contained a provision (sec. 622) that 
would authorize the payment of the muster duty allowance not 
later than 30 days after the service member performs the duty.
      The Senate amendment contained a provision (sec. 627) 
that would repeal the requirement that members of the Ready 
Reserve be paid for muster duty on or before the date on which 
they perform the duty, and would require that the allowance be 
paid on or before, but not later than 30 days following the 
date on which the duty is performed.
      The Senate recedes with a clarifying amendment.

            Subtitle C--Travel and Transportation Allowances

Travel and transportation allowances for dependents before approval of 
        member's court-martial sentence (sec. 631)
      The House bill contained a provision (sec. 631) that 
would remove the restrictions on authorizing travel and 
transportation allowances to a dependent of a service member 
who receives certain court-martial sentences.
      The Senate amendment contained a provision (sec. 662) 
that would permit the service secretaries to move family 
members when a crime has been committed by the military 
sponsor.
      The Senate recedes with a clarifying amendment.
Dislocation allowance (sec. 632)
      The House bill contained a provision (sec. 632) that 
would establish grade-based rates for dislocation allowances 
and would index the annual growth of dislocation allowances to 
increases in the national average monthly cost of housing.
      The Senate amendment contained a provision (sec. 618) 
that would establish the amount of the dislocation allowance 
for a service member to be equal to 160 percent of the national 
average cost of housing determined for members of the same 
grade and dependency status and for those service members 
entitled to a second dislocation allowance, the second 
allowance would be equal to 130 percent of the national average 
cost of housing determined for members of the same grade and 
dependency status.
      The Senate recedes with an amendment that would merge the 
provisions into one.

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

One-year opportunity to discontinue participation in Survivor Benefit 
        Plan (sec. 641)
      The Senate amendment contained a provision (sec. 651) 
that would permit a participant in the Survivor Benefit Plan to 
elect to discontinue participation at any time during a one-
year period beginning on the second year anniversary of the 
date on which the member retired.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Time in which change in survivor benefit coverage from former spouse to 
        spouse may be made (sec. 642)
      The House bill contained a provision (sec. 641) that 
would remove the requirement that service members may change 
the beneficiary for the Survivor Benefit Plan from a former 
spouse to a spouse within one year of the date of remarriage.
      The Senate amendment contained a provision (sec. 652) 
that would permit a military retiree to change the beneficiary 
of his or her Survivor Benefit Plan from a former spouse to a 
current spouse at anytime after the retiree remarries.
      The House recedes with a clarifying amendment.
Review of Federal former spouse protection laws (sec. 643)
      The Senate amendment contained a provision (sec. 1039) 
that would require the Secretary of Defense to conduct a 
comprehensive review of the Uniformed Services Former Spouse 
Protection Act. The review would include other laws affecting 
federal civil service retirement and current civil practices 
regarding division of retirement pay or pensions in order to 
assess whether the Uniformed Services Former Spouse Protection 
Act should be amended. The recommended provision requires the 
report to be provided to Congress by September 30, 1999.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the areas to be considered during the review of the Uniformed 
Services Former Spouse Protection Act.
Annuities for certain military surviving spouses (sec. 644)
      The Senate amendment contained a provision (sec. 654) 
that would authorize an annuity of $165 a month for surviving 
spouses of former active duty service members who died before 
March 21, 1974, and were retired from active duty. The 
recommended provision would also apply to surviving spouses of 
service members retired from the reserves between September 21, 
1972 and October 1, 1978. These surviving spouses, known as 
``Forgotten Widows,'' are the survivors of retired military 
personnel who died before any survivor benefit program was 
enacted.
      The House bill contained no similar provision.
      The House recedes.
Administration of benefits for so-called minimum income widows (sec. 
        645)
      The conferees agree to include a provision that would 
clarify the authority of the Secretary of Veterans Affairs to 
consolidate certain annuities currently paid by the Secretary 
of Defense to the widows of military retirees into a single 
payment.

                       Subtitle E--Other Matters

Loan repayment program for commissioned officers in certain health 
        professions (sec. 651)
      The House bill contained a provision (sec. 652) that 
would amend chapter 109 of title 10, United States Code, to 
establish an education loan repayment program for specific 
health professions.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Conformance of NOAA commissioned officers separation pay to separation 
        pay for members of other uniformed services (sec. 652)
      The House bill contained a provision (sec. 653) that 
would remove the limitations on the amount of separation pay 
that may be paid to commissioned officers of the National 
Oceanic and Atmospheric Administration (NOAA) and would exclude 
that portion of separation pay withheld for income taxes from 
the amount that must be repaid before becoming eligible for 
disability payments from the Department of Veterans Affairs. 
This section would conform the separation pay authority for 
NOAA commissioned officers with the separation pay authority 
for members of the armed services.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Eligibility of Public Health Service officers and NOAA commissioned 
        corps officers for reimbursement of adoption expenses (sec. 
        653)
      The House bill contained a provision (sec. 654) that 
would authorize officers of the Commissioned Corps of the 
Public Health Service to receive reimbursement for adoption 
expenses in the same manner as members of the armed forces.
      The Senate amendment contained a provision (sec. 663) 
that would extend the authorization for reimbursement of 
adoption expenses in effect for the armed forces to the Public 
Health Service and the National Oceanic and Atmospheric 
Administration.
      The House recedes with a clarifying amendment.
Payment of back quarters and subsistence allowances to World War II 
        veterans who served as guerrilla fighters in the Philippines 
        (sec. 654)
      The House bill contained a provision (sec. 655) that 
would authorize the payment of quarters and subsistence 
allowances to qualified individuals who served as guerilla 
fighters during the period from January 1942 through February 
1945.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Subsistence of members of the Armed Forces above the poverty level 
        (sec. 655)
      The House bill contained a provision (sec. 657) that 
would direct the Secretary of Defense to conduct a study of 
members of the armed forces and their dependents who subsist 
at, near, or below the poverty line.
      The Senate amendment contained a similar provision (sec. 
664).
      The House recedes with a clarifying amendment.
      The conferees do not intend that implementation of this 
provision would cause current recipients of supplemental food 
benefits within the United States to be removed from the 
program. The conferees encourage the committees of jurisdiction 
to examine the need for a supplemental food program for members 
of the armed services and eligible civilians living overseas 
and provide the funding needed to operate the overseas program 
while sustaining the program within the United States. The 
conferees note that the Secretary of Defense mayuse Department 
of Defense funds to conduct this program until funding is received from 
the Secretary of Agriculture.

                   Legislative Provisions Not Adopted

Space available travel for members of Selected Reserve
      The House bill contained a provision (sec. 656) that 
would provide authority for members of the Selected Reserve and 
their accompanying dependents to receive transportation on 
Department of Defense aircraft on a space available basis under 
the same terms and conditions that apply to active duty members 
of the armed forces and their dependents.
      The Senate amendment contained no similar provision.
      The House recedes.
Implementation of Department of Defense Supplemental Food Program for 
        military personnel outside the United States
      The House bill contained a provision (sec. 658) that 
would authorize the Secretary of Defense to use operations and 
maintenance funding to operate the program until funding is 
received from the Secretary of Agriculture.
      The Senate amendment contained a similar provision within 
section 664.
      The House recedes.
Paid-up coverage under Survivor Benefit Plan
      The Senate amendment contained a provision (sec. 653) 
that would terminate Survivor Benefit Plan payments following 
30 years of payments and attaining the age of 70.
      The House bill contained no similar provision.
      The Senate recedes.

                   Title VII--Health Care Provisions

                     Legislative Provisions Adopted

                    Subtitle A--Health Care Services

Expansion of retiree dental insurance plan to include surviving spouse 
        and child dependents of certain deceased members (sec. 701)
      The House bill contained a provision (sec. 701) that 
would amend section 1076c(b)(4) of title 10, United States 
Code, to allow the survivors of members who died while on 
active duty to participate in the retiree dental insurance 
plan.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Provision of prosthetic devices to covered beneficiaries (sec. 702)
      The House bill contained a provision (sec. 702) that 
would amend section 1077(a) of title 10, United States Code, to 
allow for prosthetic devices to be provided to CHAMPUS 
beneficiaries for significant conditions, as determined by the 
Secretary of Defense.
      The Senate amendment contained a similar provision (sec. 
707).
      The Senate recedes.
Study concerning the provision of comparative information (sec. 703)
      The Senate amendment contained a provision (sec. 711) 
that would require the Secretary of Defense to conduct a study 
concerning the provision of information to TRICARE 
beneficiaries and report the results to the Congress.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                      Subtitle B--TRICARE Program

Addition of definition of TRICARE program to title 10 (sec. 711)
      The House bill contained a provision (sec. 711) that 
would amend section 1072 of title 10, United States Code, to 
include a definition of the TRICARE Program.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Plan for expansion of managed care option of TRICARE program (sec. 712)
      The House bill contained a provision (sec. 712) that 
would require the Secretary of Defense to prepare a plan for 
expanding the managed care option of TRICARE--TRICARE Prime--
into areas located outside the catchment areas of military 
treatment facilities where the Department determines it is cost 
effective to do so.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

          Subtitle C--Uniformed Services Treatment Facilities

Implementation of designated provider agreements for Uniformed Services 
        Treatment Facilities (sec. 721)
      The House bill contained a provision (sec. 721) that 
would amend section 722(c) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201) to 
clarify the implementation date of the designated provider 
program of the Uniformed Services Treatment Facilities (USTFs), 
and allow the USTFs to begin delivery of health care services 
as a designated provider within six months of signing the new 
designated provider agreement with the Department of Defense, 
or upon implementation of TRICARE in the USTFs region, 
whichever date is later.
      The Senate amendment contained a provision (sec. 731) 
that wouldclarify the implementation date of the designated 
provider program of the Uniformed Services Treatment Facilities 
(USTFs); allow the USTFs to begin delivery of health care services as a 
designated provider within six months of signing the new designated 
provider agreement with the Department of Defense, or upon 
implementation of TRICARE in the USTFs region, whichever date is later; 
require the Secretary of Defense to submit to binding arbitration; 
impose limits on contracting out primary care services and permit 
flexibility on the date on which the uniform benefit must be 
implemented.
      The Senate recedes.
Continued acquisition of reduced-cost drugs (sec. 722)
      The House bill contained a provision (sec. 723) that 
would allow the Uniform Services Treatment Facilities to 
continue to purchase pharmaceuticals under the preferred 
pricing levels applicable to government agency purchases.
      The Senate amendment contained a similar provision (sec. 
733).
      The House recedes.
Limitation on total payments (sec. 723)
      The House bill contained a provision (sec. 722) that 
would clarify the limitation on total program payments 
established in section 726(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201).
      The Senate amendment contained a similar provision (sec. 
732).
      The House recedes.

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

Improvements in health care coverage and access for members assigned to 
        certain duty locations far from sources of care (sec. 731)
      The Senate amendment contained a provision (sec. 701) 
that would make active duty service members assigned to certain 
remote duty locations eligible for health care under the 
Civilian Health and Medical Program of the Uniformed Services 
(CHAMPUS), and would direct the secretaries of the military 
departments to waive the annual fees, deductibles, and 
copayments associated with CHAMPUS.
      The House bill contained no similar amendment.
      The House recedes with an amendment that would retain the 
Senate provision and would direct the Secretary of Defense to 
improve the supplemental care program consistent with the 
TRICARE program in order to provide care to active duty 
personnel who are assigned to duty locations more than 50 miles 
from a military treatment facility.
Waiver or reduction of copayments under overseas dental program (sec. 
        732)
      The House bill contained a provision (sec. 731) that 
would amend section 1076a(h) of title 10, United States Code, 
to waive the dental copayment requirements for family members 
of active-duty members stationed overseas when they receive 
host-nation dental care under the Overseas Dental Program.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Premium collection requirements for medical and dental insurance 
        programs; extension of deadline for implementation of dental 
        insurance program for military retirees (sec. 733)
      The House bill contained a provision (sec. 732) that 
would amend section 1076b(b) and 1076c(c) of title 10, United 
States Code, to change the premium collection method prescribed 
for the Selected Reserve Dental Program and the Retiree Dental 
Program.
      The Senate amendment contained a similar provision (sec. 
705).
      The Senate recedes with an amendment that would modify 
the date on which the retiree dental plan must be effective.
      The conferees continue to insist that the Secretary of 
Defense provide comprehensive dental insurance programs for the 
Selected Reserve and for retirees and their families at the 
lowest possible cost.
      The conferees expect the Secretary of Defense to use the 
allotment or payroll deduction process to the maximum extent 
possible for dental insurance premium collection. The conferees 
urge the Secretary to review the feasibility of including 
electronic funds transfer as an alternative means of premium 
collection. The conferees expect the Secretary to forward a 
legislative proposal if it is determined that electronic funds 
transfer is a viable alternative and that legislation is 
required to facilitate that method of premium collection.
      The conferees urge the Secretary of Defense to develop a 
regional premium similar to the common practices of the 
commercial insurance industry to ensure that those who live in 
low-cost areas do not subsidize those in higher cost areas. The 
conferees note that it is common commercial practice to limit 
the availability of certain benefits for some period of time 
after the beneficiary enrolls in the program, or to require a 
minimum enrollment period. The conferees urge the Secretary of 
Defense to consider including these commercial practices in the 
retiree dental plan.
Dental insurance plan coverage for retirees of the Public Health 
        Service and NOAA (sec. 734)
      The Senate amendment contained a provision (sec. 706) 
that would extend eligibility for the retiree dental plan of 
the Department of Defense to retirees of the Public Health 
Service and the National Oceanic and Atmospheric 
Administration.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Consistency between CHAMPUS and Medicare in payment rates for services 
        (sec. 735)
      The House bill contained a provision (sec. 733) that 
would amend section 1079(h) of title 10, United States Code, to 
provide for greater consistency between CHAMPUS reimbursement 
rates for health care services and Medicare reimbursement 
rates.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Use of personal services contracts for provision of health care 
        services and legal protection for providers (sec. 736)
      The House bill contained a provision (sec. 734) that 
would clarify that personal services contract employees 
providing health care services, including fee-basis physicians, 
are covered by the same malpractice litigation rules as other 
Department of Defense health care providers and would enable 
the Secretary of Defense the authority to provide for 
reasonable attorney's fees in any litigation in which 
government attorneys do not provide representation.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would sunset 
the provision after one year, would require the Secretary of 
Defense to report to the Congress on alternative methods to 
provide medical screening to the Military Entrance and 
Processing stations, including use of the TRICARE Managed 
Support contracts and outsourcing, and would extend the 
authority to the Secretary of Transportation for the Coast 
Guard.
Portability of State licenses for Department of Defense health care 
        professionals (sec. 737)
      The House bill contained a provision (sec. 735) that 
would amend section 1094 of title 10, United States Code, to 
authorize members of the armed forces licensed to practice 
medicine and other health professions to practice such 
professions in any state, the District of Columbia, or a 
territory or possession of the United States while performing 
authorized duties for the Department of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Standard form and requirements regarding claims for payment for 
        services (sec. 738)
      The House bill contained a provision (sec. 736) that 
would amend section 1106 of title 10, United States Code, to 
eliminate the requirement for non-participating providers who 
provide services to Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS) beneficiaries to submit claims for 
payment for services on behalf of the beneficiary.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
      The conferees believe that this provision will improve 
access to health care by reducing the administrative burden on 
health care providers which should make providing care under 
the CHAMPUS system more attractive to these providers. 
Increasing the number of CHAMPUS providers, especially in rural 
and under served areas, should enhance the health care options 
for Department of Defense health care beneficiaries. 
Beneficiaries who elect to receive care from a non-
participating health care provider may have to file a claim for 
reimbursement from the CHAMPUS system. The conferees note that 
eliminating the requirement for non-participating providers to 
submit claims for payment for services on behalf of the 
beneficiary does not apply to health care providers who 
participate in the TRICARE network.
Chiropractic health care demonstration program (sec. 739)
      The Senate amendment contained a provision (sec. 709) 
that would increase the number of sites and extend the length 
of the chiropractic health care demonstration authorized by the 
National Defense Authorization Act for Fiscal Year 1995.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                       Subtitle E--Other Matters

Continued admission of civilians as students in physician assistant 
        training program of Army Medical Department (sec. 741)
      The House bill contained a provision (sec. 741) that 
would amend chapter 407 of title 10, United States Code, to 
provide permanent authority for a demonstration program 
established by the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337) to allow students from 
civilian accredited institutions of higher education to attend 
physician assistant training at the Academy of Health Sciences 
at Fort Sam Houston, Texas, in return for the provision of 
certain academic services from the respective civilian 
institutions.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Payment for emergency health care overseas for military and civilian 
        personnel of the On-Site Inspection Agency (sec. 742)
      The House bill contained a provision (sec. 742) that 
would amend chapter 152 of title 10, United States Code, to 
authorize the Secretary of Defense to pay for emergency health 
care services obtained by a military member, civilian employee, 
or contractor employee of the On-Site Inspection Agency while 
on permanent or temporary duty in a former Soviet Union or 
former Warsaw Pact state.
      The Senate amendment contained a provision (sec. 702) 
that would provide authority for the Secretary of Defense to 
pay for emergency health care costs of military and civilian 
personnel assigned to the On-Site Inspection Agency, while 
participating in arms control inspections overseas, from funds 
available to the On-Site Inspection Agency (OSIA).
      The House recedes with a clarifying amendment.
Authority for agreement for use of medical resource facility, 
        Alamogordo, New Mexico (sec. 743)
      The Senate amendment contained a provision (sec. 710) 
that would permit the Secretary of the Air Force to enter into 
an agreement, the contents of which are specified in the 
provision, with Gerald Champion Hospital in Alamogordo, New 
Mexico in which the hospital would provide health care services 
at a discount, provided that the facility is constructed in 
part with funds provided by the Secretary of the Air Force.
      The House bill contained no similar amendment.
      The House recedes with an amendment that would retain the 
essence of the Senate provision but would require that the 
funds be provided from Air Force Operations and Maintenance 
funds; would include additional information in the agreement; 
and would require the Secretary of Defense to review the 
proposed agreement and provide comments to the Congress before 
the agreement could be signed.
Disclosures of cautionary information on prescription medications (sec. 
        744)
      The Senate amendment contained a provision (sec. 703) 
that would require that each prescription dispensed through the 
Military Health Care System, including the TRICARE and CHAMPUS 
programs, be accompanied by information containing cautions 
about use, possible side effects, and potential negative 
interaction with food or beverages.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Competitive procurement of certain ophthalmic services (sec. 745)
      The House bill contained a provision (sec. 1405) that 
would require the Secretary of Defense to competitively 
procure, from the private sector, all ophthalmic services 
unless it is more cost effective or is necessary to meet 
readiness requirements to perform these services within the 
armed services.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Comptroller General study of adequacy and effect of maximum allowable 
        charges for physicians under CHAMPUS (sec. 746)
      The House bill contained a provision (sec. 743) that 
would require the Comptroller General of the United States to 
study the adequacy of the CHAMPUS reimbursement rates, and the 
effect of these rates on the participation of physicians in the 
CHAMPUS program.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Comptroller General study of Department of Defense pharmacy programs 
        (sec. 747)
      The House bill contained a provision (sec. 744) that 
wouldrequire the Comptroller General of the United States to 
evaluate the pharmacy programs of the Department of Defense. The 
required study would examine the merits and feasibility of establishing 
a uniform formulary for military treatment facility pharmacies and 
civilian contractor pharmacies.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
that the study include a review of the merits and feasibility 
of using private sector cost control mechanisms and the 
existence of any barriers to the use of such mechanisms.
Comptroller General study of Navy graduate medical education program 
        (sec. 748)
      The House bill contained a provision (sec. 745) that 
would require the Comptroller General of the United States to 
evaluate recommendations made by the Medical Education Policy 
Council of the Navy Bureau of Medicine and Surgery to 
restructure the Navy's graduate medical education program.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Study of expansion of pharmaceuticals by mail program to include 
        additional Medicare-eligible covered beneficiaries (sec. 749)
      The House bill contained a provision (sec. 746) that 
would require the Secretary of Defense to provide a report to 
Congress, within six months of enactment of this Act, on the 
feasibility, advisability and cost of extending the current 
mail-order pharmacy program for Medicare-eligible beneficiaries 
in areas affected by base closures to all Medicare-eligible 
beneficiaries who do not reside near a military medical 
treatment facility.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Comptroller General study of requirement for military medical 
        facilities in the National Capital Region (sec. 750)
      The House bill contained a provision (sec. 747) that 
would require the Comptroller General to conduct a study to 
evaluate the requirement for Army, Navy, and Air Force medical 
facilities in the National Capital Region.
      The Senate amendment contained no similar amendment.
      The Senate recedes.
Report on policies and programs to promote healthy lifestyles for 
        members of the Armed Forces and their dependents (sec. 751)
      The Senate amendment contained a provision (sec. 1042) 
that would require the Secretary of Defense to report to the 
Congress on the effectiveness of the policies and programs 
intended to promote healthy lifestyles among members of the 
armed forces and their families.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Sense of Congress regarding quality health care for retirees (sec. 752)
      The Senate amendment contained a provision (sec. 708) 
that would express the sense of the Congress that the United 
States has a moral obligation to provide quality health care to 
military retirees and their families.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                    Subtitle F--Persian Gulf Illness

Plan for health care services for Persian Gulf veterans (sec. 762)
      The House bill contained a provision (sec. 752) that 
would require the Secretary of Defense and the Secretary of 
Veterans Affairs to prepare a joint plan to provide appropriate 
health care to Persian Gulf veterans who suffer from a Gulf War 
illness.
      The Senate amendment contained a similar amendment (sec. 
752).
      The Senate recedes with a clarifying amendment.
Comptroller General study of revised disability criteria for physical 
        evaluation boards (sec. 763)
      The House bill contained a provision (sec. 753) that 
would require the Comptroller General to conduct a study 
evaluating the revisions made by the Secretary of Defense to 
the criteria used by Physical Evaluation Boards to set 
disability ratings for members of the armed forces who are no 
longer medically qualified for continuaton on active duty.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Medical care for certain reserves who served in Southwest Asia during 
        the Persian Gulf War (sec. 764)
      The Senate amendment contained a provision (sec. 704) 
that would entitle a member of a reserve component who is a 
Persian Gulf War veteran, registers a symptom or illness in the 
Persian Gulf War Veterans Health Surveillance System of the 
Department of Defense, and is not otherwise entitled to medical 
and dental care from the Military Health Care System to medical 
and dental care to the same extent and under the same 
conditions as a member on active duty.
      The House bill contained no similar provision.
      The House recedes with an amendment that would entitle a 
member of a reserve component who is a Persian Gulf War 
veteran, registers a symptom or illness in the Persian Gulf War 
Veterans Health Surveillance System of the Department of 
Defense, and is not otherwise entitled to medical and dental 
care from the Military Health Care System or the Veterans 
Affairs medical system to medical care to the same extent and 
under the same conditions as a member on active duty.
Improved medical tracking system for members deployed overseas in 
        contingency or combat operations (sec. 765)
      The House bill contained a provision (sec. 754) that 
would require the Secretary of Defense to establish a system to 
assess the medical condition of members of the armed forces who 
are deployed outside the United States as part of a contingency 
operation.
      The Senate amendment contained a similar provision (sec. 
753).
      The Senate recedes with a clarifying amendment.
Notice of use of investigational new drugs or drugs unapproved for 
        their applied use (sec. 766)
      The House bill contained a provision (sec. 757) that 
would require the Secretary of Defense to notify a member of 
the armed forces before the member is administered an 
investigational new drug or a drug unapproved for its applied 
use.
      The Senate amendment contained a similar provision (sec. 
756).
      The Senate recedes with a clarifying amendment.
Sense of Congress regarding the deployment of specialized units for 
        detecting and monitoring chemical, biological, and similar 
        hazards in a theater of operations (sec. 768)
      The House bill contained a provision (sec. 756) that 
would require the Secretary of Defense to submit a plan to the 
Congress regarding the deployment of a specialized unit of the 
armed forces with the capability and expertise to detect and 
monitor the presence of chemical, biological, and similar 
hazards.
      The Senate amendment contained a similar provision (sec. 
755).
      The House recedes with an amendment that would express 
the Sense of Congress that the Secretary of Defense, in 
conjunction with the Chairman of the Joint Chiefs of Staff, 
should take such actions as are necessary to ensure that units 
of the armed forces deployed in a theater of operations for a 
contingency operation include specialized units with the 
capability to detect and monitor the presence of chemical, 
biological, and similar hazards.
Sense of Congress concerning Gulf War illness (sec. 771)
      The House bill contained a provision (sec. 760) that 
would express the sense of the Congress that all promising 
technology and treatments related to Gulf War illness should be 
fully explored and tested to facilitate treatment for members 
of the armed forces who are stricken with Persian Gulf illness.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   Legislative Provisions Not Adopted

Medical personnel conscience clause
      The House bill contained a provision (sec. 737) that 
would require the Secretary of Defense to establish a uniform 
policy with regard to a conscience clause for abortion and 
family planning services. Under this policy, medical personnel 
who, for moral, ethical, or religious reasons, object to 
performing an abortion or to providing family planning services 
would not be required to perform such procedures unless their 
refusal to do so poses life-threatening risks to the patient.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe that the service policies with 
regard to conscience clauses should be uniform. The conferees 
note that the Army has proposed a policy change that would make 
their policy consistent with that of the other services. Once 
the change is promulgated, the Secretary of the Army is 
directed to provide a copy of the regulation to the Committee 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters

                       items of special interest

Cost accounting standards board
      The conferees believe that much progress has been made 
over the past several years to bring needed reform and 
streamlining to the federal acquisition process. However, the 
conferees note that concerns have been raised that the cost 
accounting standards governing the allocation of direct and 
indirect costs on government contracts, as promulgated by the 
Cost Accounting Standards Board (CAS), are an impediment to 
acquisition streamlining.
      The conferees endorse the House report (H. Rept. 105-
132), which requires the General Accounting Office (GAO) to 
conduct a study that would analyze and assess the mission of 
the CAS Board. The conferees believe that such a study, in 
which all views are represented, would help the Congress to 
determine the best way to balance the interest of taxpayers and 
the need for greater acquisition streamlining.

                     Legislative Provisions Adopted

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Expansion of authority to enter into contracts crossing fiscal years to 
        all severable service contracts not exceeding a year (sec. 801)
      The House bill contained a provision (sec. 802) that 
would broaden the current limited authority of the Department 
of Defense to expend appropriated funds for severable service 
contracts that cross fiscal years.
      The Senate amendment contained a similar provision (sec. 
803).
      The House recedes with an amendment clarifying that the 
current authority of the Coast Guard to expend funds for such 
contracts is intended to be unaffected by the provision.
      The conferees direct that the Secretary of Defense review 
the Department's operations under this provision and no later 
than 30 days after the end of both fiscal years 1998 and 1999 
submit reports to the congressional defense committees 
containing the following information for each fiscal year:
            (1) the total amount and sources of funds obligated 
        under the provision;
            (2) the types of services procured under the 
        provision;
            (3) when the services were ordered and when 
        provided; and
            (4) the reasons in each case why the authority 
        under the section was required to be used.
      A copy of each report shall be provided simultaneously to 
the Comptroller General.
      No later than 180 days after receipt of the report of the 
Department of Defense for fiscal year 1999, the Comptroller 
General shall submit a report to the congressional defense 
committees addressing:
            (1) any abuses of the provision, such as efforts to 
        circumvent year-end spending limitations; and
            (2) recommendations for legislative or 
        administrative changes to the authority under the 
        section that the Comptroller General may believe to be 
        appropriate.
Vesting of title in the United States under contracts paid under 
        progress payment arrangements or similar arrangements (sec. 
        802)
      The House bill contained a provision (sec. 803) that 
would establish in statute the title vesting provisions 
currently used by the Department of Defense in contractual 
agreements involving certain forms of contract financing.
      The Senate amendment contained a similar provision (sec. 
812).
      The House recedes.
Restriction on undefinitized contract actions (sec. 803)
      The House bill contained a provision (sec. 804) that 
would add disaster relief, humanitarian, and peacekeeping 
operations to the types of operations for which the head of an 
agency may waive limitations on the use of undefinitized 
contracts.
      The Senate amendment contained a similar provision (sec. 
802).
      The House recedes.
Limitation and report on payment of restructuring costs under defense 
        contracts (sec. 804)
      The House bill contained a provision (sec. 805) that 
would codify in title 10, United States Code, the policy 
restrictions in section 8115 of the Omnibus Appropriations Act 
for Fiscal Year 1997 (Public Law 104-208) relating to the 
allowability of restructuring costs under defense contracts. 
The House provision would also consolidate the requirements of 
section 818 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public 103-337) into a codifed provision.
      The Senate amendment contained a provision (sec. 841) 
that would extend for two years the reporting requirements 
under section 818 and would require a report from the General 
Accounting Office on the effects of defense business 
combinations on competition and on contract weapon system 
prices.
      The House recedes with an amendment combining the two 
provisions.
Multiyear procurement contracts (sec. 806)
      The House bill contained a provision (sec. 807) that 
would provide that no future multiyear procurement contract may 
be entered into by the Secretary of Defense unless such 
contract is specifically authorized by law in an act other than 
an appropriations act. The House provision would also codify 
various requirements that the Secretary of Defense must meet in 
order to enter into or to terminate a multiyear procurement 
contract.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
requirement that future multiyear procurement contracts be 
authorized in law to contracts in amounts over $500.0 million.
Audit of procurement of military clothing and clothing-related items by 
        military installations in the United States (sec. 807)
      The House bill contained a provision (sec. 810) that 
would require the Department of Defense Inspector General to 
carry out a random audit of procurements of goods by the 
military installations in fiscal years 1996 and 1997 to 
determine the extent to which such installations procured goods 
made in countries other than the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
audit to a determination of the extent to which military 
installations procured military clothing and clothing-related 
items in procurements above $2,500 in violation of the Buy 
American Act.
Limitation on allowability of compensation for certain contractor 
        personnel (sec. 808)
      The Senate amendment contained a provision (sec. 804) 
that, for the purpose of determining the allowability of costs 
under section 2324 of title 10, United States Code, and section 
306 of the Federal Property and Administrative Services Act of 
1949, would:
            (1) limit the reimbursement of senior executive 
        salaries to the median of salary of senior executives 
        in all public corporations with annual sales in excess 
        of $50.0 million, regardless of the size of the 
        company;
            (2) define executive compensation to include the 
        total amount of wages, salary, bonuses, and deferred 
        compensation that is recorded in the contractor's cost 
        accounting records for the year; and
            (3) apply the limitations applicable to the five 
        most highly-paid executives of a contractor, or any 
        division of a contractor.
      The House bill contained no similar provision.
      The House recedes with an amendment that would provide 
that the limitation applies to costs incurred after January 1, 
1998. In addition to making other clarifying changes, the 
amendment would also provide that no other limitation on the 
reimbursement of senior executive salaries covered under this 
section shall apply after that date.
Elimination of certification requirement for grants (sec. 809)
      The Senate amendment contained a provision (sec. 807) 
that would eliminate the drug-free workplace certification 
requirements in relation to federal grants in a similar manner 
provided for federal contracts in section 4301(a)(3) of the 
National Defense Authorization Act for Fiscal Year 1996.
      The House bill contained no similar provision.
      The House recedes.
      The conferees strongly support the continued requirement 
that persons accept and enforce the drug-free workplace laws as 
a condition for the award of a contract or grant with a federal 
agency.
Repeal of limitation on adjustment of shipbuilding contracts (sec. 810)
      The Senate amendment contained a provision (sec. 808) 
that would repeal section 2405 of title 10, United States Code, 
and apply the current six-year limitation for the submission of 
claims in the Contract Disputes Act as the sole limitation on 
shipbuilding claims.
      The House bill contained no similar provision.
      The House recedes.
Item-by-item and country-by-country waivers of domestic source 
        limitations (sec. 811)
      The House bill contained a provision (sec. 801) that 
would require the Secretary of Defense to apply the waiver 
authority with respect to section 2534 of title 10, United 
States Code only on a case-by-case basis on specific 
procurements.
      The Senate amendment contained a provision (sec. 809) 
that would provide the Secretary of Defense with blanket waiver 
authority for the domestic source restrictions in section 2534.
      The Senate recedes with an amendment that would provide 
the Secretary with the authority to grant waivers to the 
restrictions in section 2534 for a particular item and a 
particular foreign country. Each such waiver would be effective 
for up to one year, as determined by the Secretary. The 
provision would require the Secretary, 15 days before the 
effective date of a waiver, to notify the congressional defense 
committees and to publish in the Federal Register a notice of 
the determination to exercise the waiver.

              Subtitle B--Acquisition Assistance Programs

One-year extension of pilot mentor-protege program (sec. 821)
      The Senate amendment contained a provision (sec. 822) 
that would extend the period in which mentor firms may incur 
costs for furnishing developmental assistance under the 
Department of Defense mentor-protege program until September 
30, 2000. The provision would also extend the period during 
which new agreements under the program may be entered into 
until September 30, 1999.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the General Accounting Office to review the implementation of 
the mentor-protege program and report on the extent to which 
the program is achieving the purposes established under this 
section.
      The conferees intend to use the results of this report in 
reassessing the long-term viability of the mentor-protege 
program during the next legislative cycle.
Test program for negotiation of comprehensive subcontracting plans 
        (sec. 822)
      The Senate amendment contained a provision (sec. 823) 
that would extend from September 30, 1998 to September 30, 2000 
the expiration date for the current test program for 
negotiating comprehensive subcontracting plans with Department 
of Defense (DOD) contractors. The provision would also address 
participating contractors acting as subcontractors under a DOD 
prime contract by allowing them to include their major 
subcontracts within their subcontracting plans.
      The House bill contained no similar provision.
      The House recedes.
      The conferees believe that the DOD should expand the 
program in a manner that would encourage prime contractors to 
enter the program on a plant or facility basis.

                 Subtitle C--Administrative Provisions

Retention of expired funds during the pendency of contract litigation 
        (sec. 831)
      The Senate amendment contained a provision (sec. 831) 
that would permit federal agencies to retain amounts collected 
pursuant to the Contract Disputes Act of 1978 to satisfy a 
settlement reached between parties or a judgment rendered in 
favor of a contractor through the Federal Courts or the Armed 
Services Board of Contract Appeals. The provision would also 
require the Comptroller of the Department of Defense to provide 
an annual report to Congress on the amounts available for 
obligation under the authority of this provision.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
authority under the provision to the military services and 
defense agencies, as well as make other clarifying changes.
Protection of certain information from disclosure (sec. 832)
      The Senate amendment contained a provision (sec. 832) 
that would amend section 2371 of title 10, United States Code, 
to clarify that certain information submitted by outside 
parties in transactions governed by the authority under that 
section is protected from disclosure under section 552 of title 
5, United States Code.
      The House bill contained no similar provision.
      The House recedes.
Unit cost reports (sec. 833)
      The Senate amendment contained a provision (sec. 834) 
that would eliminate duplicative reporting requirements on unit 
costs of major defense acquisition programs.
      The House bill contained no similar provision.
      The House recedes.
Plan for providing contracting information to general public and small 
        business (sec. 834)
      The Senate amendment contained a provision (sec. 835) 
that would require the Under Secretary of Defense (Acquisition 
and Technology) to designate an official in his office to serve 
as a central point of contact for persons seeking information 
about how and where to respond to contract solicitations, 
procedures for being included on approved suppliers lists, and 
other contracting information.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to develop a plan for improving the 
responsiveness of the Department of Defense to persons from the 
general public and small businesses seeking information on 
contracting and technology development opportunities with the 
Department of Defense. Such plan is to include an assessment of 
the designation of a single point of contact within the Office 
of the Secretary of Defense for that purpose.
Two-year extension of crediting of certain purchases toward meeting 
        subcontracting goals (sec. 835)
      The conferees agree to include a provision that would 
extend for an additional two years the authority to credit 
purchases from qualified nonprofit agencies for the blind or 
other severely handicapped toward meeting subcontracting goals 
of defense contractors.

                       Subtitle D--Other Matters

Repeal of certain acquisition requirements and reports (sec. 841)
      The House bill contained a provision (sec. 821) that 
would repeal a number of miscellaneous acquisition reporting 
requirements.
      The Senate amendment contained similar repeals (secs. 801 
and 833).
      The Senate recedes with an amendment that would combine 
certain elements from both provisions.
Use of major range and test facility installations by commercial 
        entities (sec. 842)
      The House bill contained a provision (sec. 822) that 
would amend section 2681 of title 10, United States Code, to 
delay for two years the expiration of existing authority 
allowing the Department of Defense test and evaluation 
facilities to make excess capacity available to the commercial 
sector.
      The Senate amendment contained a similar provision (sec. 
232) that would delay the expiration of the authority in 
section 2681 for three years.
      The House recedes with an amendment that would delay the 
expiration of the authority for four years.
Requirement to develop and maintain list of firms not eligible for 
        defense contracts (sec. 843)
      The House bill contained a provision (sec. 823) that 
would amend section 2327 of title 10, United States Code, to 
require the Secretary of Defense to develop and maintain a list 
of all firms and subsidiaries of firms that, for the preceding 
five years, have been prohibited from entering into contracts 
with the Department of Defense because of substantial ownership 
by a foreign government supporting acts of international 
terrorism. The House provision would also prohibit defense 
contractors from providing any equipment, parts, or services to 
the Department of Defense from such listed firms.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would allow 
individuals to request the Secretary of Defense to have firms 
included on the list. The provision would also exclude listed 
firms from receiving subcontracts under contracts with the 
Department of Defense in a manner similar to firms that are 
suspended or debarred under subpart 9.4 of the Federal 
Acquisition Regulation.
Sense of Congress regarding allowability of costs of employee stock 
        ownership plans (sec. 844)
      The House bill contained a provision (sec. 824) that 
would prohibit the Secretary of Defense from making a 
determination of the allowability of costs of employee stock 
ownership plans (ESOP), in accordance with a rule that had been 
proposed and withdrawn in prior years.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would express 
the sense of Congress that the Defense Contract Audit Agency 
(DCAA) should not disallow interest costs associated with ESOPs 
incurred before January 1, 1994. It also states that the 
Department of Defense should not disallow costs related to ESOP 
debt, control premiums, or marketability discounts associated 
with the valuation of ESOP stock of closely held companies that 
were incurred before January 1, 1995.
      The conferees have been informed that retroactive 
application of changes to DCAA policy on these issues could 
have severe economic consequences for ESOP defense contractors. 
Therefore, the conferees have included a provision that would 
address retroactivity. The provision is not intended to pass 
judgment on the changes. The conferees do not intend that the 
provision supercede any agreement that a contractor may have 
entered into with the Department of Defense that provides for a 
different treatment of ESOP costs.
      The conferees understand that a number of other federal 
agencies may have an interest in the accounting rules 
applicable to ESOP costs. The conferees direct the Secretary to 
consult with the Office of Management and Budget, the General 
Accounting Office, and accounting experts in such other federal 
agencies to determine whether a consistent, government-wide 
approach to the relevant accounting and policy issues can be 
developed. Any interagency process addressing these issues 
should provide for public comment.
Expansion of personnel eligible to participate in demonstration project 
        relating to acquisition workforce (sec. 845)
      The House bill contained a provision (sec. 825) that 
would expand the personnel eligible to participate in the 
workforce demonstration project authorized in section 4308 of 
the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit to 
95,000 the total number of persons who may participate in the 
demonstration project.
Time for submission of annual report relating to Buy American Act (sec. 
        846)
      The House bill contained a provision (sec. 826) that 
would reduce the time for the Department of Defense to prepare 
and submit the annual report relating to the Buy American Act 
required under section 827 of the National Defense 
Authorization Act for Fiscal Year 1997 from 120 to 60 days 
after the end of each fiscal year.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require a 
report 90 days after the end of each fiscal year.
Repeal of requirement for contractor guarantees on major weapon systems 
        (sec. 847)
      The House bill contained a provision (sec. 1503) that 
would repeal section 2403 of title 10, United States Code, 
requiring the Secretary of Defense to obtain contractor 
guarantees on major weapon systems contracts.
      The Senate amendment contained a provision (sec. 811) 
that wouldmodify the requirements in section 2403 to provide 
flexibility to the Secretary of Defense and the secretaries of the 
military services to decide the appropriate use of such contractor 
guarantees.
      The Senate recedes.
      The conferees direct the Secretary of Defense to issue 
regulations to ensure that program managers actively and 
thoroughly examine the value and utility of contractor 
guarantees on major systems and pursue such guarantees where 
appropriate and cost effective.
Requirements relating to micro-purchases (sec. 848)
      The House bill contained a provision (sec. 1504) that 
would require the use of micro-purchase methods for contracts 
below the micro-purchase threshold unless a member of the 
Senior Executive Service or a general or flag officer makes a 
written determination that such procedures should not apply for 
specified reasons.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to ensure that 60 percent of all 
eligible purchases of goods or services for an amount less than 
the micro-purchase threshold will be made through streamlined 
micro-purchase procedures by October 1, 1998 and that 90 
percent of such purchases be made through streamlined 
procedures by October 1, 2000. The provision would require the 
Secretary of Defense to define ``eligible purchases'' for the 
purposes of this requirement and to exclude those categories of 
purchases determined not to be appropriate or practicable for 
streamlined micro-purchase procedures. The provision would also 
require the Secretary of Defense to provide a plan implementing 
the requirements under this section by March 1, 1998, and to 
annually report through March 1, 2001 on procurement actions by 
the Department of Defense for amounts less than the micro-
purchase threshold.
Promotion rate for officers in an acquisition corps (sec. 849)
      The Senate amendment contained a provision (sec. 843) 
that would require the Under Secretary of Defense for 
Acquisition and Technology to report annually through October 
1, 2000 on the extent to which each military service is 
complying with promotion opportunity requirement in section 
1731(b) of title 10, United States Code.
      The House bill contained no similar provision.
      The House recedes.
Use of electronic commerce in federal procurement (sec. 850)
      The Senate amendment contained a provision (sec. 844) 
that would allow federal agencies greater flexibility in 
implementing uniformly the electronic commerce capability 
requirements in the Federal Acquisition Streamlining Act of 
1994.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the heads of agencies to give due consideration to the use or 
partial use of existing electronic commerce systems, such as 
the Federal Acquisition Computer Network (FACNET), before 
developing new systems using this authority. The amendment 
would also require the Administrator for Federal Procurement 
Policy to submit annual reports to the Congress detailing 
progress made in implementing this section.
Conformance of policy on performance based management of civilian 
        acquisition programs with policy established for defense 
        acquisition programs (sec. 851)
      The Senate amendment contained a provision (sec. 845) 
that would conform the policy on performance based management 
of civilian acquisition programs with the similar policy 
applicable to defense acquisition programs under the Federal 
Acquisition Streamlining Act of 1994 (Public Law 103-355).
      The House bill contained no similar provision.
      The House recedes.
Modification of process requirements for the solutions-based 
        contracting pilot program (sec. 852)
      The Senate amendment contained a provision (sec. 846) 
that would amend the solutions-based contracting pilot program 
established in section 5312 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106).
      The House bill contained no similar provision.
      The House recedes.
Guidance and standards for defense acquisition workforce training 
        requirements (sec. 853)
      The Senate amendment contained a provision (sec. 847) 
that would extend for an additional two years the authority of 
the Department of Defense to use alternative fulfillment 
standards for purposes of the training requirements in the 
Defense Acquisition Workforce Improvement Act (title XII of 
Public Law 101-510).
      The House bill contained no similar provision.
      The House recedes with an amendment that would direct the 
Secretary of Defense to develop appropriate guidance and 
standards to ensure that the Department will continue to 
contract out the training of acquisition personnel in 
appropriate cases while maintaining necessary control over the 
content and quality of such training.
Study and report to Congress assessing dependence on foreign sources 
        for resistors and capacitors (sec. 854)
      The House bill contained a provision (sec. 1061) that 
would require the Secretary of Defense to conduct a study of 
the capacitor and resistor industries in the United States to 
determine the importance of the industry to national security 
and the impact on the industry of the removal of tariffs under 
the Information Technology Agreement.
      The Senate amendment contained a similar provision (sec. 
1048).
      The House recedes with an amendment.
      The conferees believe that, in preparing the study, the 
Secretary of Defense should consider industries involved with 
the development and manufacture of the full spectrum of 
capacitors and resistors, including fixed resistors, wirewound 
resistors, film resistors, solid tantalum capacitors, multi-
layer ceramic capacitors, wet tantalum capacitors, disc ceramic 
capacitors, aluminum electrolytic capacitors, film capacitors, 
and oil-filled capacitors.
Department of Defense and Federal Prison Industries joint study (sec. 
        855)
      The Senate amendment contained a provision (sec. 848) 
that would require the Department of Defense (DOD) and Federal 
Prison Industries (FPI) to jointly conduct a study of the 
existing procedures that govern procurement transactions 
between DOD and FPI, and to make recommendations to improve the 
efficiency and reduce the cost of such transactions.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

Domestic source limitation amendments
      The House bill contained a provision (sec. 808) that 
would amend section 2534 of title 10, United States Code, to 
add shipboard work stations to the list of naval vessel 
components required to be procured from domestic sources. The 
provision would also make permanent the expired requirement to 
procure certain valves and machine tools from domestic sources.
      The Senate amendment contained no similar provision.
      The House recedes.
Repeal of expiration of domestic source limitation for certain naval 
        vessel propellers
      The House bill contained a provision (sec. 809) that 
would amend section 2534 of title 10, United States Code, to 
make the existing limitation on the procurement of naval vessel 
propellers permanent.
      The Senate amendment contained no similar provision.
      The House recedes.
Availability of simplified procedures to commercial item procurements
      The House bill contained a provision (sec. 1505) that 
would revise the authority in section 2304 of title 10, United 
States Code, and in section 303 of title 41, United States 
Code, to test simplified procedures for commercial item 
procurements. The provision would allow such test procedures to 
be used in cases where a contracting officer reasonably expects 
that offers will include other than commercial items.
      The Senate amendment contained no similar provision.
      The House recedes.
Price preference for small and disadvantaged businesses
      The Senate amendment contained a provision (sec. 824) 
that would condition the use of the 10 percent price preference 
in section 2323 of title 10, United States Code, on the failure 
of the Department of Defense to meet in the prior fiscal year 
the five percent goal specified in section 2323.
      The House bill contained no similar provision.
      The Senate recedes.
      The Senate conferees intend to review the need for 
continuing the price preference authority during hearings next 
year and may include in a future defense bill a provision 
similar to that contained in the Senate amendment.

      Title IX--Department of Defense Organization and Management

                     Legislative Provisions Adopted

Subtitle A--Department of Defense Positions and Organizations and Other 
                            General Matters

Assistants to the Chairman of the Joint Chiefs of Staff for National 
        Guard Matters and for Reserve Matters (sec. 901)
      The Senate amendment contained a provision (sec. 905) 
that would establish the position of Senior Representative of 
the National Guard Bureau in the grade of general and would add 
this position as a member of the Joint Chiefs of Staff.
      The House bill contained no similar provision.
      The House recedes with an amendment that would establish 
two positions on the Joint Staff. There would be an Assistant 
to the Chairman of the Joint Chiefs of Staff for National Guard 
Matters and an Assistant to the Chairman of the Joint Chiefs of 
Staff for Reserve Matters. These positions would be established 
in the grade of major general, or in the case of the Navy, rear 
admiral. The provision would establish the term of office as 
two years and incumbents may be reappointed for one additional 
term. In time of war, the term limit would be suspended.
      The provision would establish a procedure for appointing 
the Assistant to the Chairman of the Joint Chiefs of Staff for 
National Guard Matters in which the Governors would recommend 
National Guard officers to fill the position. The conferees 
appreciate the necessity for the Governors to participate in 
the selection process for this important position. The 
procedure for appointing the Assistant to the Chairman of the 
Joint Chiefs of Staff for Reserve Matters requires the 
secretaries of the military departments to recommend officers 
from their respective reserve force. As in the case of the 
National Guard, the conferees believe that the participation of 
the secretaries of the military departments is an essential 
element of the selection process for the Assistant to the 
Chairman of the Joint Chiefs of Staff for Reserve Matters.
      The conferees recognize that there currently is a Reserve 
Mobilization Assistant position, filled by a National Guard 
major general, assigned to the Office of the Director of the 
Joint Staff. The conferees established the two new positions in 
lieu of the current position to ensure that the Chairman and 
the Joint Staff have the benefit of the best advice with regard 
to all the reserve forces, in particular as it pertains to 
their unique capabilities and requirements.
      The conferees urge the Chairman of the Joint Chiefs of 
Staff to ensure that these assistants have access to the Joint 
Staff and that they are included in discussions pertaining to 
resource matters, employment of National Guard or reserve 
forces, and war plans. The conferees expect that the Secretary 
of Defense and the Chairman of the Joint Chiefs will ensure 
that these assistants are able to participate, at the 
appropriate level, in the Defense Resources Board.
      The provision would also require that the Secretary of 
Defense, in consultation with the Chairman, develop appropriate 
guidance to ensure that the level of reserve component officer 
representation on the Joint Staff is commensurate to the 
significant and important role assigned to reserve components 
in the total force. The conferees are convinced that reserve 
component officers are an excellent resource of expertise and 
experience that would add a valuable perspective to the 
increasingly complex mission of the Joint Staff.
      The conferees note that the requirements of this 
provision are intended to be implemented within the clearly 
established principles of the Goldwater-Nichols Department of 
Defense Reorganization Act of 1986 (Public Law 99-433), which 
vests the Chairman with unequivocal control over the selection 
and management of all officers assigned to the Joint Staff. 
While the conferees find it appropriate to establish these two 
positions to ensure that advice on reserve component matters 
provided to the Chairman is of the highest quality and value, 
in no way are these positions intended to operate independently 
from or in conflict with the direction of the Chairman.
      The common purpose of protecting U.S. national security 
interests must remain the paramount concern for all components 
of the total force. The mission must not be undermined by 
continued feuding over resources, bureaucratic standing, and 
attempts to enhance political equities. The conferees are 
dismayed and frustrated with the animosity and mistrust that 
exists between the Army and the National Guard. The conferees 
expect the Secretary of Defense, the Secretary of the Army, and 
the Chief of Staff of the Army to work with the Chief of the 
National Guard Bureau and The Adjutants General to resolve the 
divisive sentiments and suspicion that exists on both sides. 
The Secretary of Defense must ensure that the Secretary of the 
Army does not treat the National Guard in a cavalier manner, 
ignoring valid requirements and intentionally under-resourcing 
the National Guard, with the assumption that Congress will make 
up the shortfalls. The National Guard must work within the 
existing systems and processes to ensure that National Guard 
units are able to complement the active force and are ready to 
meet the wartime or contingency requirements they may be 
deployed to meet.
Use of CINC Initiative Fund for force protection (sec. 902)
      The Senate amendment contained a provision (sec. 903) 
that would provide the commanders-in-chief (CINCs) with the 
authority to utilize funding from the CINC Initiative Fund to 
provide for any force protection requirements that emerge in 
their respective areas of operation.
      The House bill contained no similar provision.
      The House recedes.
Revision to required frequency for provision of policy guidance for 
        contingency plans (sec. 903)
      The House bill contained a provision (sec. 906) that 
would amend section 113(g)(2) of title 10, United States Code, 
to permit policy guidance for contingency plans to be given 
every two years or more frequently, as needed, rather than 
annually.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Annual justification for Department of Defense advisory committees 
        (sec. 904)
      The House bill contained a provision (sec. 1508) that 
would terminate existing advisory committees, would prohibit 
any future advisory committee, board, or commission, unless 
established in law, and would require the Secretary of Defense 
to submit an annual report justifying any advisory committee 
the Secretary proposes to support in the next fiscal year.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to submit an annual report justifying 
any advisory committee the Secretary proposes to support in the 
next fiscal year.
Defense Airborne Reconnaissance Office (sec. 905)
      The House bill contained a provision (sec. 907) that 
would terminate the Defense Airborne Reconnaissance Office 
(DARO) and transfer its oversight responsibilities to the 
Defense Intelligence Agency (DIA).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would transfer 
the airborne reconnaissance systems acquisition and program 
management responsibilities from the DARO and the unmanned 
aerial vehicle joint program office (UAV JPO) back to the 
military services and retains Office of the Secretary of 
Defense (OSD)-level oversight responsibilities for airborne 
reconnaissance architecture determination and systems interface 
requirements within the DARO. The conferees direct the 
Secretary of Defense to ensure that the Task Force on Defense 
Reform makes specific recommendations for the distribution of 
authority to carry out legitimate management oversight 
responsibilities for airborne reconnaissance programs within 
the OSD and the UAV JPO. The conferees do not intend to make 
any changes within the cruise missile activities of the UAV 
JPO. The confereesunderstand that a principal focus of the Task 
Force is ensuring that program management-like responsibilities within 
OSD are shifted to the Service or Defense Agencies. The conferees 
expect that the Task Force recommendations will address this specific 
issue, as well as the appropriate organizational relationships for 
overseeing airborne reconnaissance programs within OSD.
      The conferees agree with the concerns that led to the 
House provision. The congressional defense committees have 
repeatedly stated concerns with respect to both manned and 
unmanned airborne reconnaissance, yet there has been little 
improvement noted. The conferees note the Hicks & Associates 
report, which recommends that the OSD should focus 
``exclusively on top leadership and management tasks, assigning 
program management and execution tasks and lower priority tasks 
elsewhere in DOD.'' This report goes on to say that ``OSD is a 
staff and advisory component . . .'' that should divest itself 
of hands-on management. The conferees agree.
      The conferees believe there is a very different 
environment with respect to joint operations and developments 
in the Pentagon today than existed when the Congress first 
directed creation of the DARO in 1993. The changes include: 
strengthened oversight by the Joint Requirements Oversight 
Council (JROC); the Chairman of the JROC (or the Director for 
Force Structure, Resources, and Assessment) participation as a 
member of the Defense Acquisition Board, and the Defense 
Airborne Reconnaissance Steering Committee to monitor joint 
reconnaissance issues. The conferees believe this senior 
oversight can provide sufficient direction, control, and 
monitoring of service efforts to ensure joint interoperability 
of reconnaissance systems.
      The conferees also believe that there should be a 
coordinating management function within OSD specifically 
charged with oversight of service airborne reconnaissance 
systems and their development. Whatever the final repository of 
the airborne reconnaissance management oversight function 
within the OSD organization, the conferees intend that the 
responsibilities of the position be limited to coordinating 
budget developments, ensuring adherence to standards and 
interoperability requirements, and avoiding unnecessary 
duplication of effort. The conferees believe that:
            (1) a streamlined DARO can provide the proper OSD 
        management oversight, coupled with the necessary JROC 
        requirements direction, while devolving the authorities 
        and responsibilities for equipping the military forces 
        to the services; and
            (2) legitimate management oversight does not 
        include either controlling execution year obligation of 
        operations and maintenance funding, or acting as the 
        acquisition agent for airborne reconnaissance systems.
      The conferees direct the Secretary of Defense to provide 
the Congress with a plan to implement the directed 
reorganization and transfers of authority, based on the Task 
Force report, no later than March 1, 1998. The conferees direct 
the Secretary to complete implementation of the plan not later 
than September 30, 1998.
Termination of Armed Services Patent Advisory Board (sec. 906)
      The House bill contained a provision (sec. 1506) that 
would terminate the Armed Services Patent Advisory Board and 
transfer the functions of the board to the Defense Technology 
Security Administration.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees direct the Department of Defense to provide 
adequate staff resources to the Defense Technology Security 
Agency to support the functions of the agency including those 
transferred from the Armed Services Patent Advisory Board under 
this provision.
Coordination of Department of Defense criminal investigations and 
        audits (sec. 907)
      The House bill contained a provision (sec. 1507) that 
would create two new statutory boards in the Department of 
Defense: a Board on Criminal Investigations, consisting of the 
Assistant Secretary of Defense for Command, Control, 
Communications, and Intelligence and the heads of the three 
military criminal investigative organizations; and a Board on 
Audits, consisting of the Under Secretary of Defense 
(Comptroller), the Auditors General of the military 
departments, and the Director of the Defense Contract Audit 
Agency. The Department of Defense Inspector General would be a 
nonvoting member of both boards. These boards would be charged 
with providing for cooperation among the military departments' 
criminal investigative and audit organizations to avoid 
duplication of effort and maximize resources.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the heads of the military departments' criminal investigative 
and auditing organizations to take such actions as may be 
practicable to conserve limited resources by sharing personnel, 
expertise, infrastructure, training, equipment, software, and 
other resources. These officials are to meet on a regular basis 
to determine the manner and extent to which such resources will 
be shared. The Secretary of Defense shall submit, by December 
31, 1997, a plan to maximize the resources available to these 
organizations.
      This provision is not intended to affect the 
responsibility of the Under Secretary of Defense (Comptroller); 
the Assistant Secretary of Defense for Command, Control, 
Communications, and Intelligence; or the secretaries of the 
military departments for determining resource allocation and 
related policies for audit and investigative organizations in 
the Department of Defense. In addition, it is not intended to 
affect the existing authority of the Inspector General of the 
Department of Defense regarding the coordination of audit and 
investigative functions within the Department of Defense.

         Subtitle B--Department of Defense Personnel Management

Reduction in personnel assigned to management headquarters and 
        headquarters support activities (sec. 911)
      The House bill contained a provision (sec. 1301) that 
would require the Secretary of Defense to reduce the number of 
personnel assigned to management headquarters and headquarters 
support activities by 25 percent over four years.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require a 
25 percent reduction in the number of personnel assigned to 
management headquarters and headquarters support activities 
over five years, would direct a five percent reduction in the 
number of personnel assigned to management headquarters and 
headquarters support activities during fiscal year 1998, would 
direct a five percent reduction in the number of personnel 
assigned to management headquarters and headquarters support 
activities within the United States Transportation Command 
during fiscal year 1998, and would direct the Secretary of 
Defense to require the Task Force on Defense Reform to include 
an examination of the missions, functions, and responsibilities 
of various headquarters activities and management headquarters 
support activities and to submit a report on the results of the 
examination by the Task Force on Defense Reform to the Congress 
not later than March 1, 1998.
      The conferees intend that the reductions in the United 
States Transportation Command made during fiscal year 1998 
count towards the aggregate Department-wide reduction of five 
percent.
Additional reduction in defense acquisition workforce (sec. 912)
      The House bill contained a provision (sec. 1302) that 
would mandate a reduction in the size of the defense 
acquisition workforce by 124,000 individuals by October 1, 
2001. The provision would require a phased implementation of 
the reduction and include a requirement to reduce the size of 
the workforce by 40,000 individuals in fiscal year 1998.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require a 
reduction of 25,000 in the number of defense acquisition 
personnel positions in fiscal year 1998. The provision would 
provide authority for the Secretary of Defense to waive up to 
15,000 of that number based on a determination that a greater 
reduction would be inconsistent with cost-effective management 
of the defense acquisition system to obtain best value 
equipment and would adversely affect military readiness. The 
provision would also require a report on the reduction in the 
number of acquisition positions in the Department of Defense 
since 1989 and a definition of the defense acquisition 
workforce that can be uniformly applied throughout the 
Department of Defense. With regard to the definition, the 
conferees are encouraged by the foundational analysis of the 
issue recently completed for the Department of Defense by an 
outside contractor.
      The provision would also require a review of acquisition 
organizations and functions by both the Secretary of Defense 
and the Task Force on Defense Reform. The conferees expect that 
these reviews will be conducted in a thorough manner and that 
the reports by the Secretary of Defense on these reviews will 
be submitted to Congress in a timely fashion.

         Subtitle C--Department of Defense Schools and Centers

Professional military education schools (sec. 921)
      The House bill contained a provision (sec. 902) that 
would modify the definition of the National Defense University 
by adding the Information Resources Management College, and 
would also clarify the authority of the Secretary of Defense to 
hire professors, lecturers, and instructors for the Information 
Resources Management College.
      The Senate amendment contained a provision (sec. 902) 
that would designate the Information Resources Management 
College as a component of the National Defense University. The 
recommended provision would also make a technical change to the 
name of the Institute for National Strategic Study to read the 
Institute for National Strategic Studies, and would include the 
Marine Corps University among professional military education 
schools.
      The House recedes with an amendment that would meld the 
two provisions into one.
Center for Hemispheric Defense Studies (sec. 922)
      The Senate amendment contained a provision (sec. 906) 
that would include the Center for Hemispheric Defense Studies 
as a component of the National Defense University.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Correction to reference to George C. Marshall European Center for 
        Security Studies (sec. 923)
      The Senate amendment contained a provision (sec. 1106) 
that would permit employees of the George C. Marshall European 
Center for Security Studies to qualify for naturalization by 
waiving the permanent residency requirements.
      The House bill contained no similar provision.
      The House recedes with an amendment that would provide 
employees of the George C. Marshall European Center for 
Security Studies the same status as was provided for employees 
of the United States Army Russian Institute, the former name of 
the George C. Marshall Center. The amendment would not waive 
the permanent residency requirements.

     Subtitle D--Department of Defense Intelligence-Related Matters

Transfer of certain military department programs from TIARA budget 
        aggregation (sec. 931)
      The Senate amendment contained a provision (sec. 904) 
that would transfer specified programs from the Tactical 
Intelligence and RelatedActivities (TIARA) aggregation to other 
accounts of the military services.
      The House bill contained no similar provision.
      The House recedes with an amendment that would: (1) 
retain the directed TIARA program transfers as specified in the 
original Senate provision; (2) require an assessment by the 
Secretary of Defense as to the adequacy and currency of current 
criteria for judging which programs belong in the TIARA 
aggregation; and (3) provide the Secretary with discretion to 
defer any directed transfer based on the outcome of his 
assessment.
Report on coordination of access of commanders and deployed units to 
        intelligence collected and analyzed by the intelligence 
        community (sec. 932)
      The Senate amendment contained a provision (sec. 1061) 
that would require the Secretary of Defense to report to the 
Congress regarding the specific steps taken or that are being 
taken to ensure adequate coordination of operational 
intelligence support for combatant commanders and deployed 
units.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Protection of imagery, imagery intelligence, and geospatial information 
        and data (sec. 933)
      The Senate amendment contained a provision (sec. 1062) 
that would amend sections 455 and 467 of title 10, United 
States Code, to clarify the authority of the Secretary of 
Defense to permit selective releases of geospatial information 
representing little military value while protecting the most 
sensitive information.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
POW/MIA intelligence analysis (sec. 934)
      The Senate amendment contained a provision (sec. 1067) 
that would direct the Director of Central Intelligence, in 
consultation with the Secretary of Defense, to provide 
intelligence analytical support on matter concerning missing 
persons to all departments and agencies of the Federal 
Government involved in such matters.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                   Legislative Provisions Not Adopted

Limitation on operation and support funds for the Office of the 
        Secretary of Defense
      The House bill contained a provision (sec. 901) that 
would reduce the funding associated with the operation and 
support activities of the Office of the Secretary of Defense 
(OSD) by twenty percent, and would restrict the obligation of 
ten percent of funding authorized in fiscal year 1998 until the 
Department conforms to the requirements of section 901 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106) and section 904 of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201).
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees remain concerned with the Department's non-
compliance with section 901 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106) 
that requires a report on specific plans for improving 
organizational efficiency and effectiveness of the Office of 
the Secretary (OSD). In addition, the conferees note that OSD 
failed to implement personnel reductions at a rate sufficient 
to achieve the statutory requirement by October 1, 1997, as 
specified in section 903 of the National Defense Authorization 
Act for Fiscal Year 1997 (Public Law 104-201).
Center for the Study of Chinese Military Affairs
      The House bill contained a provision (sec. 904) that 
would require the Department of Defense to establish a Center 
for the Study of Chinese Military Affairs.
      The Senate amendment contained no similar provision.
      The House recedes.
White House Communications Agency
      The House bill contained a provision (sec. 905) that 
would limit funding for the White House Communications Agency 
(WHCA) to $55.0 million, an amount slightly below fiscal year 
1997 levels.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe that Department of Defense funds 
for WHCA should only be spent on telecommunication support for 
the President, and the Department should be reimbursed for non-
telecommunication support services.
      The WHCA is staffed with approximately eight civilians 
and 908 military personnel. Of those 908 military positions, 
103 are for the provision of non-telecommunications support 
services. The conferees believe that there is little 
justification to provide non-telecommunications support 
services to the President with military personnel assigned to 
WHCA. In an era when the administration is calling for further 
reductions in military end-strength, the conferees believe that 
the military billets dedicated to non-telecommunications 
support for WHCA could be better used elsewhere within the 
Department of Defense to perform missions that are truly in 
support of national defense. The conferees believe that non-
telecommunications support services provided by WHCA can, and 
should, be provided by civilian personnel.
      Furthermore, the conferees note that the WHCA budget 
incorrectly included the WHCA procurement items in the 
Operation and Maintenance (O&M) budget request. Therefore, the 
conferees agree to transfer the $7.2 million for WHCA 
procurement from the O&M account to theprocurement account.
Personnel reductions in the United States Transportation Command
      The House bill contained a provision (sec. 1304) that 
would mandate a 1,000 person reduction in the United States 
Transportation Command during fiscal year 1998.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that another section of the conference 
agreement directs a reduction in the number of personnel 
assigned to management headquarters and headquarters support 
activities within the United States Transportation Command of 
five percent during fiscal year 1998.
Commission on Defense Organization and Streamlining
      The House bill contained a series of provisions (sec. 
1601-1609) that would establish a Commission on Defense 
Organization and Streamlining. The purpose of the commission 
would be to examine the missions, functions, and 
responsibilities of the Office of the Secretary of Defense, the 
management headquarters and headquarters support activities of 
the military departments and defense agencies, and the various 
acquisition organizations of the Department of Defense; to 
propose alternative organizational structures; and to identify 
areas of duplication and recommend options to eliminate the 
duplications.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that other provisions of the 
conference agreement direct the Secretary of Defense to require 
a Task Force on Defense Reform to examine the missions, 
functions, and responsibilities of the Department's acquisition 
organizations and its various headquarters activities and 
management headquarters support activities; and to submit 
reports on the results of the examinations by the Task Force to 
the Congress in early 1998.
Principal duty of Assistant Secretary of Defense for Special Operations 
        and Low Intensity Conflict
      The Senate amendment contained a provision (sec. 901) 
that would revise the original legislation concerning the 
principal duty of the Assistant Secretary of Defense for 
Special Operations and Low Intensity Conflict to put the 
emphasis on the Assistant Secretary's supervision of the 
budgetary, development, and acquisition activities of the 
Commander in Chief of the Special Operations Command.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees are aware that the Secretary of Defense has 
established a Task Force on Defense Reform that is, inter alia, 
focusing on the reform of the Office of the Secretary of 
Defense (OSD). In another section, the conference agreement 
would require the Secretary of Defense to submit the Task 
Force's report with the comments and recommendations of the 
Secretary of Defense to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives. The conferees believe that any changes to the 
duties of senior OSD officials should take into account the 
recommendations contained in that report.

                      Title X--General Provisions

                       items of special interest

Global Positioning System alternate master control station
      The Global Positioning System (GPS) has become or soon 
will be fully integrated into most facets of U.S. military 
planning and operational capabilities. GPS has also been 
integrated significantly into civil and commercial navigation 
planning. As such, the conferees recognize the expanding 
importance of GPS as a national asset, one that is critical to 
U.S. national security and economic interests. The conferees 
are aware of potential command and control vulnerabilities 
associated with the GPS master control station at Falcon Air 
Force Base, Colorado. The conferees understand that GPS is the 
only critical national satellite system that does not have an 
adequate, separate, and secure backup control station. The 
conferees believe that the Department of Defense and the Air 
Force should pursue, as an urgent priority, a secure backup GPS 
system operations facility that is geographically separate from 
the existing facility.
      Therefore, the conferees direct the Secretary of the Air 
Force to proceed in fiscal year 1998 with the development of an 
alternate master control station at a location outside the 
Colorado Springs area. The conferees expect this new alternate 
master control station to be operational by fiscal year 2001. 
The conferees further direct the Secretary of the Air Force to 
submit a report to the congressional defense committees on this 
issue not later than February 15, 1998.

                     Legislative Provisions Adopted

                     Subtitle A--Financial Matters

Transfer authority (sec. 1001)
      The House bill contained a provision (sec. 1001) that 
would permit the transfer of $2.0 billion of amounts made 
available in Division A of the bill for any fiscal year to any 
other authorization made available in Division A upon 
determination by the Secretary of Defense that such a transfer 
would be in the national interest.
      The Senate amendment contained a similar provision (sec. 
1001) that would authorize the budget request level of $2.5 
billion in transfer authority.
      The Senate recedes.
Incorporation of classified annex (sec. 1002)
      The House bill contained a provision (sec. 1002) that 
would incorporate the classified annex prepared by the 
Committee on National Security into this act.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment providing 
that the classified annex prepared by the committee of 
conference is incorporated into this act.
Authority for obligation of unauthorized fiscal year 1997 defense 
        appropriations (sec. 1003)
      The House bill contained a provision (sec. 1003) that 
would authorize fiscal year 1997 programs that received 
appropriations but no authorization.
      Senate amendment contained a similar provision (sec. 
1002).
      The Senate recedes.
Authorization of prior emergency supplemental appropriations for fiscal 
        year 1997 (sec. 1004)
      The House bill contained a provision (sec. 1004) that 
would extend authorization to those items appropriated by the 
fiscal year 1997 emergency supplemental appropriations 
legislation.
      The Senate amendment contained a similar provision (sec. 
1003).
      The House recedes.
Increase in fiscal year 1996 transfer authority (sec. 1005)
      The House bill contained a provision (sec. 1005) that 
would provide an increase in authorization transfer authority 
provided by section 1001 of the National Defense Authorization 
Act for Fiscal Year 1996.
      The Senate amendment contained a similar provision (sec. 
1004).
      House recedes with a technical amendment.
Revision of authority for Fisher House trust funds (sec. 1006)
      The Senate amendment contained a provision (sec. 1006) 
that would amend section 914 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106) to 
require the Secretary of the Air Force to deposit an 
appropriate amount of funds to establish the corpus of the 
Fisher House Trust Fund, Department of the Air Force.
      The House bill contained no similar provision.
      The House recedes.
Flexibility in financing closure of certain outstanding contracts for 
        which a small final payment is due (sec. 1007)
      The House bill contained a provision (sec. 1007) that 
would permit the Secretary of Defense to establish an account 
to transfer funds into for the purpose of making small final 
payments on certain outstanding contracts for which funds 
appropriated for that purpose have expired.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment that 
clarifies that the total amount of all transfers into the 
account may not exceed $1.0 million without additional 
congressional authority.
Biennial financial management improvement plan (sec. 1008)
      The Senate amendment contained a provision (sec. 1005) 
that would require a strategic financial management plan within 
the Department of Defense to determine goals for improving and 
reengineering the finance and accounting functions.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the intent of the report.
Estimates and requests for procurement and military construction for 
        the reserve components (sec. 1009)
      The House bill contained a provision (sec. 122) that 
would require the Secretary of Defense to submit an annual 
report to Congress that describes the measures taken within the 
Department of Defense to ensure that the reserve components are 
appropriately funded and lists the major weapons and items of 
equipment provided for these components. The section would also 
require the Secretary of Defense to display in all future years 
defense program updates the amounts programmed for the 
procurement of equipment for the reserve components.
      The Senate amendment contained a provision (sec. 1008) 
that would require the Department of Defense to specify 
estimated expenditures and proposed appropriations for reserve 
component modernization at the same level of detail as the 
active forces in the annexes provided with the Future Years 
Defense Program (FYDP).
      The House recedes.
Sense of Congress regarding funding for reserve component modernization 
        not requested in the President's budget (sec. 1010)
      The Senate amendment contained a provision (sec. 1059) 
that would require the Congress, to the extent practicable, to 
consider authorization of appropriation for reserve component 
modernization activities not included in the budget request if 
certain criteria are met:
            (1) There is a Joint Requirements Oversight Council 
        validated requirement for the equipment;
            (2) The equipment is included for reserve component 
        modernization in the modernization plan of the military 
        department concerned and is incorporated into the 
        future years defense program;
            (3) The equipment is consistent with the use of 
        reserve component forces; and
            (4) The funds can be obligated in the fiscal year.
      The provision also calls for Congress to obtain the views 
of the Chairman, Joint Chiefs of Staff on whether equipment not 
included inthe budget request is appropriate for the employment 
of reserve component forces in Department of Defense warfighting plans.
      The House bill contained no similar provision.
      The House recedes.
Management of working-capital funds (sec. 1011)
      The Senate amendment contained a provision (sec. 370) 
that would modify section 2208 of title 10, United States Code, 
the authority under which the working capital funds are now 
being managed, to make contract authority available for 
obtaining capital assets. The Senate amendment also contained a 
provision (Sec. 361) that would limit the use of advance 
billing and establish procedures to notify the congressional 
defense committees within 30 days of advance billings being 
posted to the working capital funds.
      The House bill contained no similar provisions.
      The House recedes with an amendment that would continue 
to restrict the Department of the Navy and establish procedures 
for the Department of Defense to notify the congressional 
defense committees in a timely manner when advance billing 
occurs. The conferees are concerned that excessive advance 
billing has continued, despite congressional guidance and 
initiatives to limit the practice. Advance billing has become a 
normal operating practice rather than an unusual exception. In 
the case of Navy Working Capital Funds, advance billing is 
continually used without any plans for significant reductions. 
Failure to properly budget for these activities and allowing 
these activities to operate by deficit spending each year is 
not consistent with good business practices and puts the future 
force readiness at risk.
      The conferees further agree that the removal of 
activities from the working capital funds, use of direct 
appropriations to fund these activities, or allowing working 
capital activities to change rates in the year of execution are 
not viable solutions to problems in the working capital funds. 
Proper budgeting and the use of full costing policies allow for 
the proper financial management of working capital fund 
activities.
Authority of Secretary of Defense to settle claims relating to pay, 
        allowances, and other benefits (sec. 1012)
      The Senate amendment contained a provision (sec. 1060) 
that would provide the Secretary of Defense authority, upon 
request of a secretary of a military department, to waive the 
time limits in the case of a claim for pay and allowances up to 
a maximum of $25,000. The recommended provision that would 
modify and clarify the authority granted by section 607 of the 
National Defense Authorization Act for Fiscal Year 1997 to 
ensure that the Department of Defense has adequate authority to 
address these claims.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Payment of claims by members for loss of personal property due to 
        flooding in Red River Basin (sec. 1013)
      The Senate amendment contained a provision (sec. 1081) 
that would authorize the secretary of a military department to 
pay 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.
      The House bill contained no similar provision.
      The House recedes with an amendment that would add a 
requirement that the Secretary of Defense report to the 
Congress on the Department's policy regarding the payment of 
claims for loss or damage to personal property as a result of a 
natural disaster by members of the armed forces who are not 
assigned to quarters of the United States.
Advances for payment of public services (sec. 1014)
      The House bill contained a provision (sec. 1509) that 
would allow the Department of Defense to pay utility expenses 
on a budget billing basis.
      The Senate amendment contained no similar provision.
      The Senate recedes.
United States Man and the Biosphere Program limitation (sec. 1015)
      The House bill contained a provision (sec. 1008) that 
would prohibit the use of funds appropriated for fiscal year 
1998 to support the United States Man and the Biosphere Program 
or any related project.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

                Subtitle B--Naval Vessels and Shipyards

Procedures for sale of vessels stricken from the Naval Vessel Register 
        (sec. 1021)
      The Senate amendment contained a provision (sec. 1012) 
that would authorize the sale of vessels stricken from the 
Naval Vessel Register using negotiation as an alternative to 
the sealed-bid process. This authority would allow such issues 
as environmental concerns to be addressed more effectively in 
the process of the sale.
      The House bill contained no similar provision.
      The House recedes.
Authority to enter into a long-term charter for a vessel in support of 
        the Surveillance Towed-Array Sensor (SURTASS) program (sec. 
        1022)
      The House bill contained a provision (sec. 1022) that 
would authorize the Secretary of the Navy to enter into a 
contract in accordance with section 2401 of title 10, United 
States Code, for the charter of the vessel RV CORY CHOUEST 
through fiscal year 2003 in support of the SURTASS program.
      The Senate amendment contained a provision (sec. 1011) 
that would authorize the Navy to enter into a long-term lease 
for a vessel to support the surveillance towed array sensor and 
low frequency active programs through fiscal year 2004.
      The Senate recedes.
Transfer of two specified obsolete tugboats of the Army (sec. 1023)
       The House bill contained a provision (sec. 1023) that 
would allow the Secretary of the Army to transfer two obsolete 
tugboats to the Brownsville Navigation District, Brownsville, 
Texas.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Congressional review period with respect to transfer of the ex-U.S.S. 
        Midway (CV-41) and ex-U.S.S. Hornet (CV-12) (sec. 1024)
       The House bill contained a provision (sec. 1025) that 
would allow for a 30 calendar day congressional review period 
with respect to the transfer of the decommissioned aircraft 
carrier ex-U.S.S. Midway (CV-41).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would 
substitute 30 days for 60 days of continuous session of 
Congress when applying section 7603 of title 10 to ex-U.S.S. 
Midway (CV-41) and ex-U.S.S. Hornet (CV-12). If only one 
qualified entity applies for transfer of ex-U.S.S. Midway (CV-
41) or ex-U.S.S. Hornet (CV-12), the amendment would also allow 
the Secretary of the Navy to transfer the vessel after 10 days 
of continuous session of Congress
Transfers of naval vessels to certain foreign countries (sec. 1025)
       The Senate amendment contained a provision (sec. 1013) 
that would transfer on a sale basis one Hunley class submarine 
tender, one Kaiser class oiler, seven Knox class frigates, two 
Oliver Hazard Perry class guided missile frigates, and three 
Newport class tank landing ships to various countries.
      The House bill contained no similar provision.
      The House recedes.
Reports relating to export of vessels that may contain polychlorinated 
        biphenyls (sec. 1026)
       The House bill contained a provision (sec. 1021) that 
would amend three sections of the United States Code in order 
to permit the sale of obsolete vessels that contain 
polychlorinated biphenyl compounds: section 7305 of title 10, 
to eliminate Toxic Substances Control Act restrictions on 
export of vessels for disposal; section 7306a of title 10, to 
provide that a sinking of a military vessel does not qualify as 
a prohibited export or disposal under Toxic Substances Control 
Act; and section 1160 of title 46 App., to resume the practice 
of selling ships in approved foreign markets under the Merchant 
Marine Act of 1936.
      The Toxic Substances Control Act (TSCA) (15 U.S.C. 
1605(e)) prohibits the manufacture, processing, use, or 
distribution in commerce of polychlorinated biphenyls (PCBs) 
that are not ``totally enclosed.'' The term ``totally 
enclosed'' means any manner that ensures ``insignificant'' 
human health and environmental exposures to PCBs, as determined 
by the Environmental Protection Agency (EPA). TSCA directed the 
EPA to promulgate rules for the disposal of PCBs. In vessels 
identified for sale, scrap, transfer, or sinking, the Navy has 
discovered minute quantities of PCBs that the Navy has 
concluded are bound and non-leachable. The existing EPA 
regulations make it difficult for the Navy and the Maritime 
Administration to dispose of these vessels.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of the Navy, the Administrator of the Maritime 
Administration, and the Administrator of the EPA to report to 
Congress on the implementation of an agreement that has been 
reached between the Navy and the EPA on PCB vessel disposal 
issues. The conferees understand that this agreement is in 
effect and is not contingent upon a new rule to be published 
later this year, which will incorporate the agreement between 
the Navy and EPA. The amendment would also make technical 
modifications to the provisions of the National Maritime 
Heritage Act of 1994 (16 U.S.C. 5405) that address the 
scrapping and sale of obsolete vessels.
      The conferees understand that the purpose of section 9 of 
the Shipping Act of 1916 (46 U.S.C. App. 808) is to enable the 
Maritime Administration to manage the fleet of privately-owned 
United States-flag commercial vessels capable of meeting 
national security needs and not to enforce the environmental 
laws. The conferees expect that any agreement between the 
Maritime Administration and the EPA concerning the export of 
such vessels for scrapping outside the United States will 
respect the role of the Maritime Administration by not 
requiring it to play any greater role in the enforcement of the 
environmental laws than it currently plays. The conferees 
acknowledge that it may be appropriate for the Maritime 
Administration to inform the EPA of export applications 
received pursuant to section 9(c) of the Shipping Act of 1916 
(46 U.S.C. App. 808(3)).
      The provisions concerning the Maritime Administration, 
the disposal of National Defense Reserve Fleet vessels, and the 
National Maritime Heritage Act (16 U.S.C. 5404) were resolved 
through consultations among the House and Senate conferees, the 
Committees on Commerce, Science, and Transportation of the 
Senate, and the Committees on Commerce, Transportation and 
Infrastructure, and Resources of the House of Representatives.
Conversion of defense capability preservation authority to Navy 
        shipbuilding capability preservation authority (sec. 1027)
       The Senate amendment contained a provision (sec. 806) 
that would amend section 808 of the National Defense 
Authorization Act for Fiscal Year 1996 to restrict its 
application to shipbuilding and to vest the Secretary of the 
Navy with the authority to enter into modified capability 
preservation agreements. The provision would also 
limitapplicability of the agreements to costs incurred after the date 
of enactment of this Act for commercial contracts that became effective 
on or after January 26, 1996.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                  Subtitle C--Counter-Drug Activities

      The budget request for drug interdiction and other 
counter-drug activities of the Department of Defense totals 
$808.6 million. That amount includes the $652.6 million in the 
drug interdiction account and $156.0 million in the operating 
budgets of the military services for authorized counter-drug 
operations. These amounts compare with the $957.4 million 
authorized for these activities during fiscal year 1997; $796.5 
million for the drug interdiction account and $160.9 million in 
the services' operating budgets. The reduction of $148.8 
million equates to a real decline of 17.5 percent after 
accounting for inflation. The conferees recommend an additional 
$14.3 million for the counter-drug activities of the Department 
of Defense.

 Drug Interdiction & Counter-drug Activities Operations and Maintenance

         (In thousands of dollars; may not add due to rounding)

Fiscal Year 1998 Drug and Counterdrug Request.................  $808,588
    Source Nation Support.....................................   183,031
    Detection and Monitoring..................................   238,149
    Disruption of Drug Mafia Organizations....................    54,306
    Law Enforcement Agency....................................   249,864
    Demand Reduction..........................................    83,238
  Increases:
    Riverine Interdiction Initiative..........................    $4,200
    Gulf States Counterdrug Initiative........................     4,100
    Multi-Jurisdictional Task Force...........................     1,000
    Southwest Border Fence Project............................     5,000
Recommendation................................................  $822,888
Ongoing initiatives
       In fiscal year 1997, the Congress authorized additional 
funding for three counter-drug initiatives: the Mexico-
Southwest Border Initiative; the Caribbean and South American 
Initiative; and the Domestic Counter-Narcotics Initiative. 
These initiatives were intended to provide enhanced 
capabilities to stem the flow of drugs into the United States 
and disrupt narcotics operations within our own borders.
      Although, the conferees are pleased with the initial 
progress that has been made with these initiatives, the 
conferees are concerned about the early difficulties in 
fulfilling some of the goals of the Mexico-Southwest Border 
Initiative. Due to the delay caused by these difficulties, the 
administration has requested an extension of the authority to 
provide assistance to the Government of Mexico. That authority 
was originally provided for a single year with the 
understanding that future support would be provided from funds 
available to the Department of State pursuant to the Foreign 
Assistance Act of 1961. Unfortunately, the administration 
failed to provide the necessary funds within the fiscal year 
1998 budget request of the Department of State. If it is the 
intent of the administration to turn such international 
counter-drug activities of the United States over to the 
Department of Defense for execution, the conferees believe that 
this intent should be demonstrated within the budget request by 
shifting funds from the State Department's counternarcotics 
budget to that of the Department of Defense. However, because 
the conferees understand the value of this particular 
assistance and the need to explore all available options to 
stem the flow of drugs across the Southwest border, the 
conferees agree to a provision (sec. 1032), that would extend 
for one year the authority to provide additional support for 
counter-drug activities of the government of Mexico. The total 
amount of support provided pursuant to this authority would be 
limited to $8.0 million for the two year period from fiscal 
year 1997 to 1998. In providing this support, the Secretary of 
Defense would be required to consult with the Secretary of 
State.
      The conferees continue to support the Gulf States 
Counter-drug Initiative (GSCI) and are pleased to note that the 
budget request included $3.4 million for this program. However, 
the conferees are concerned that this funding level does not 
adequately cover the costs for required software maintenance, 
training, and network support. Therefore, the conferees agree 
to authorize an increase of $4.1 million to fund these 
activities.
      The conferees agree to authorize an additional $1.0 
million for the Multi-Jurisdictional Task Force and an 
additional $5.0 million for border fence construction.
Riverine interdiction initiative
       The conferees agree to authorize an increase of $4.2 
million to the Department's counterdrug program for riverine 
operations and include a provision (sec. 1033), that would 
grant a five year authorization to the Secretary of Defense, in 
consultation with the Secretary of State, to assist the 
Peruvian and Colombian governments with the acquisition of the 
requisite equipment to actively engage riverine counter-drug 
activities. The amount of support that could be provided 
pursuant to this authority would be limited to $9.0 million in 
fiscal year 1998 and $20.0 million during any of the fiscal 
years 1999 through 2002. Funds would be restricted from initial 
obligation until 60 days after the Secretary of Defense, in 
consultation with the Secretary of State, submits a detailed 
riverine counter-drug plan to congressional defense committees. 
The Secretary would also be required to submit any revisions to 
this plan before obligating any funds for this initiative in 
the subsequent years.
      The conferees direct the Department of Defense, in 
coordination with other federal agencies involved in counter-
narcotic activities, to develop an integrated regional plan to 
establish a riverine program that can be sustained by the 
source nations at the end of the five-year period. The 
Department would be required to provide the details of this 
plan to the Committees on Armed Services and Foreign 
Relationsof the Senate and the Committees on National Security and 
International Relations of the House of Representatives before any 
assistance is provided pursuant to this authority. This plan would 
provide details as to how the riverine program fits into the overall 
national drug strategy.
Use of National Guard for State drug interdiction and counterdrug 
        activities (sec. 1031)
      The House bill contained a provision (sec. 1031) that 
would amend section 112 of title 32, United States Code, to 
prohibit the use of counter-drug funding for National Guard 
Civil-Military Activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would ensure 
that National Guard participation in counter-drug activities is 
directly related to military training and readiness in 
accordance with section 2012(d) of title 10, United States 
Code, and could support youth and charitable organizations 
designated as eligible to receive such support by section 508 
of title 32, United States Code. In addition, the provision 
would direct the Secretary of Defense to submit an annual 
report to congressional defense committees regarding the 
assistance provided, and activities conducted, under State drug 
interdiction and counter-drug activities plan.
Authority to provide additional support for counter-drug activities of 
        the Government of Mexico (sec. 1032)
      The Senate amendment contained a provision (sec. 1021) 
that would extend for one year the authority to provide 
additional support for counterdrug activities of the Government 
of Mexico.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend for 
one year the authority to provide additional support for 
counter-drug activities of the Government of Mexico. The total 
amount of support provided pursuant to this authority would be 
limited to $8.0 million for the two year period from fiscal 
year 1997 to 1998. In providing this support, the Secretary of 
Defense would be required to consult with the Secretary of 
State.
Authority to provide additional support for counter-drug activities of 
        Peru and Colombia (sec. 1033)
      The Senate amendment contained a provision (sec. 1022) 
which would grant a five year authorization to the Secretary of 
Defense to assist the Peruvian and Colombian governments with 
the acquisition of the requisite equipment to actively engage 
in the Riverine Operations.
      The House bill contained no similar provision.
      The House recedes with an amendment that would grant a 
five year authorization to the Secretary of Defense, in 
consultation with the Secretary of State, to assist the 
Peruvian and Colombian governments with the acquisition of the 
requisite equipment to actively engage riverine counter-drug 
activities. The amount of support that could be provided 
pursuant to this authority would be limited to $9.0 million in 
fiscal year 1998 and $20.0 million during any of the fiscal 
years 1999 through 2002.
Annual report on development and deployment of narcotics detection 
        technology (sec. 1034)
      The House bill contained a provision (sec. 1033) that 
would require the Director of the Office of National Drug 
Control Policy to submit a report to the Congress and the 
President regarding the development and deployment of narcotics 
detection technologies by federal agencies.
      The Senate amendment contained no similar provision.
      The Senate recedes.

       Subtitle D--Miscellaneous Report Requirements and Repeals

Repeal of miscellaneous reporting requirements (sec. 1041)
      The House bill contained a provision (sec. 1041) that 
would repeal certain obsolete reporting requirements imposed 
upon the Department of Defense.
      The Senate amendment contained a similar provision (sec. 
1031).
      The House recedes with an amendment.
Study of transfer of modular airborne fire fighting system (sec. 1042)
      The House bill contained a provision (sec. 1063) that 
would require the Secretary of Defense to consult with the 
Secretary of Agriculture and submit a report that would 
evaluate the feasibility of transferring jurisdiction over 
units of modular firefighting equipment from the Department of 
Agriculture to the Department of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Overseas infrastructure requirements (sec. 1043)
      The Senate amendment contained a provision (sec. 1036) 
that would require the Secretary of Defense to provide a report 
to the Committee on Armed Services of the Senate and the 
National Security Committee of the House of Representatives 
outlining the current and future forward-basing requirements of 
the Department of Defense along with the international 
agreements necessary to provide these facilities.
      The House bill contained no similar provision.
      The House recedes.
Additional matters for annual report on activities of the General 
        Accounting Office (sec. 1044)
      The Senate amendment contained a provision (sec. 1040) 
that wouldrequire the General Accounting Office to include 
within its annual report to Congress the amount of work performed at 
the request of members of Congress, the amount of work performed to 
fulfill a specific legislative requirement, and the amount of work 
initiated by the Comptroller General in performance of his general 
responsibilities.
      The House bill contained no similar provision.
      The House recedes.
Eye safety at small arms firing ranges (sec. 1045)
      The Senate amendment contained a provision (sec. 1041) 
that would require the Secretary of Defense to conduct a study 
of eye safety at small arms firing ranges, and report to the 
Congress on the development of a protocol for reporting eye 
injuries incurred during small arms firing activities.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
date on which the study is to begin.
Reports on Department of Defense procedures for investigating military 
        aviation accidents and for notifying and assisting families of 
        victims (sec. 1046)
      The Senate amendment contained a provision (sec. 1044) 
that would require the Secretary of Defense to provide a series 
of reports to the Congress related to investigations of 
military aviation accidents; assistance provided to families of 
casualties; and a review of the Federal Aviation Administration 
and the National Transportation Safety Board procedures for 
providing information and assistance to families of casualties 
of non-military aviation accidents.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees believe that military families deserve the 
best possible care, attention, and information, especially at a 
time of tragic personal loss. Breakdowns in the implementation 
of the established family notification procedures that are 
applicable in case of armed forces and Department of Defense 
civilian personnel casualties can cause significant distress 
and mistrust. The conferees believe that Department of Defense 
representatives involved in casualty notifications should have 
the training and experience to provide meaningful information 
about any investigations. The notification personnel should 
have access to persons qualified to provide effective grief 
counseling. Procedures for civilian family notification that 
have been adopted by the Federal Aviation Administration and 
National Transportation Safety Board might serve as a useful 
model for improvements to Department of Defense procedures.
      The requirement for the report on aviation accident 
investigation procedures is not intended to create the 
perception that the current procedures are inadequate. Rather 
the requirement is an opportunity to assess proposals to 
combine the two investigations into a single, public 
investigation process in order to clarify possible 
misconceptions or misunderstandings related to the current 
Department of Defense procedures. The conferees recognize that, 
although the Department of Defense provides much needed 
logistical support, including transportation and care of 
remains, survivor counseling, and other benefits for tragedies 
like the crash of the C-130 aircraft on November 22, 1996, this 
support may be insufficient to meet the immediate emotional and 
personal needs of affected family members. It is important that 
the flow of information to surviving family members be accurate 
and timely, and, to the extent possible, be provided to family 
members in advance of media reports. Therefore, the conferees 
believe the Department of Defense should give a high priority, 
to the extent practicable, to providing family members with all 
relevant information about an accident as soon as it becomes 
available, consistent with the national security interests of 
the United States, and to allowing the family members full 
access to any public hearings or public meetings about the 
accident.

               Subtitle E--Matters Relating to Terrorism

Oversight of counterterrorism and antiterrorism programs and activities 
        of the United States (sec. 1051)
      The House bill contained a provision (sec. 1064) that 
would direct the Office of Management and Budget to establish a 
reporting system and collect information from executive 
agencies on their counterterrorism and antiterrorism programs, 
activities, budgets, and expenditures; to provide a report on 
executive branch activities and programs from 1995 through 1997 
and submit the information to Congress. The provision would 
also require an annual report to Congress on this information.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would modify 
the requirement to report to Congress on executive branch 
activities and programs from 1995 through 1997, and require an 
annual report on prospective U.S. government counterterrorism 
and antiterrorism activities, programs, budgets, and 
expenditures.
Report on policies and practices relating to the protection of members 
        of the armed forces abroad from terrorist attack (sec. 1052)
      The House bill contained a provision (sec. 1043) that 
would require the Secretary of Defense to report on 
antiterrorism activities and programs of the Department of 
Defense, to include a description of the various programs, 
deficiencies in the programs, and actions taken by the 
Secretary to improve implementation of those programs.
      The Senate amendment contained two provisions regarding 
the policies and practices of the Department of Defense (DOD) 
in protecting members of the armed forces against terrorist 
attack; one provision (sec. 1043) that would require the 
Secretary of Defense to submit a report to Congress that would 
assess the policies and practices of the Department to protect 
U.S. Armed Forces from terrorist attack and assess the 
procedures for determining accountability in the chain of 
command in the event a terroristincident results in loss of 
life at a U.S. military facility abroad; another provision (sec. 1053) 
that would direct the Secretary of Defense to take appropriate actions 
to ensure that units of the U.S. Armed Forces engaged in peace 
operations have adequate troop protection equipment for such 
operations.
      The conferees agree to a single provision that would 
direct the Secretary of Defense to take appropriate actions to 
ensure that U.S. Armed Forces engaged in peace operations have 
the necessary equipment to adequately protect themselves; would 
direct the Secretary to designate a DOD official with 
responsibility for oversight of troop protection equipment; 
would require the Secretary of Defense to submit a report to 
Congress on antiterrorism programs and actions conducted by 
DOD, and the roles of the chain of command in providing force 
protection guidance and support to U.S. Armed Forces deployed 
overseas before and after the two terrorist bombings against 
U.S. Armed Forces in Saudi Arabia in 1995 and 1996.

            Subtitle F--Matters Relating to Defense Property

Lease of nonexcess personal property of the military departments (sec. 
        1061)
      The House bill contained a provision (sec. 1058) that 
would require the military departments to compete any lease in 
excess of one year for personal property valued over $100,000 
and notify the Congress 45 days prior to entering into such a 
lease.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Lease of nonexcess property of defense agencies (sec. 1062)
      The Senate amendment contained a provision (sec. 842) 
that would extend to the directors of defense agencies 
authority currently granted to the service secretaries to lease 
nonexcess property under certain circumstances.
      The House bill contained no similar provision.
      The House recedes with an amendment that would 
incorporate portions in the Senate provision regarding fair 
market value and competition requirements for such lease 
agreements.
Donation of excess chapel property to churches damaged or destroyed by 
        arson or other acts of terrorism (sec. 1063)
      The Senate amendment contained a provision (sec. 1078) 
that would allow the Department of Defense to donate excess 
Army chapel property to churches that were destroyed or damaged 
by an act of arson or terrorism.
      The House bill contained no similar provision.
      The House recedes with an amendment that would expand the 
authority to apply to all excess chapel property within the 
Department of Defense.
Authority of the Secretary of Defense concerning disposal of assets 
        under cooperative agreements on air defense in Central Europe 
        (sec. 1064)
      The Senate amendment contained a provision (sec. 1089) 
that would provide authority for the Secretary of Defense, 
pursuant to amendments to the European air defense agreements 
agreed to on December 6, 1983 and July 12, 1984, to provide 
defense articles owned and acquired by the United States to the 
Federal Republic of Germany.
      The House bill contained no similar provision.
      The House recedes.
      The conferees note that pursuant to amendments to the 
European Air Defense Agreements agreed to on December 6, 1983 
and July 12, 1984, the Patriot-Roland Cooperative Agreement 
(section 1007, Public Law 98-525, and section 132, Public Law 
99-83) enabled the United States and the Federal Republic of 
Germany to enhance central European air defenses by utilizing 
Patriot batteries and the Roland short range air defense 
systems, which are owned by the United States but operated by 
the Federal Republic of Germany.
      Since January 1996, negotiations between the United 
States and the Federal Republic of Germany have been underway 
to modify and extend the current agreement. The Department of 
Defense (DOD) has informed the conferees that the current 
proposal would allow the transfer of ownership for 12 Patriot 
batteries and 27 Roland short range air defense systems to the 
Federal Republic of Germany in exchange for equitable 
compensation. The DOD has further informed the conferees that 
modifying the current agreements to provide for this transfer 
of ownership would be an equitable solution with regard to the 
assets involved in the original agreement, and would enable 
continued cooperation in the air defense mission area. The 
conferees understand that legislation is necessary to 
accomplish these transfers as the original agreements do not 
provide the required transfer authority and this particular 
transfer would fall outside of the coverage of the more 
traditional authorities contained in the Arms Export Control 
Act, 22 U.S.C. 2751.
      The conferees direct the Secretary of Defense to provide 
a report to Congress on the status of the negotiations on the 
Patriot-Roland Follow-On Implementing Agreement (FOIA). The 
conferees further direct that prior to the transfer of title 
for any Patriot or Roland systems, the Secretary of Defense 
shall provide the congressional defense committees with a 
report on the financial and non-financial benefits to the 
United States of the transfer of the equipment, the mission 
value of the FOIA compensation components, the terms of the 
equipment transfer (including the use of mission value as 
compensation), the ability of the United States to meet its 
NATO obligations, and any potential obstacles to the 
performance of FOIA missions.
Sale of excess, obsolete, or unserviceable ammunition and ammunition 
        components (sec. 1065)
      The Senate amendment contained a provision (sec. 365) 
that would authorize the Secretary of the Army to competitively 
sell excess, obsolete, or unserviceable ammunition and 
ammunition components to licensed manufacturers that have the 
capability to modify, reclaim,transport, and either store or 
sell ammunition or ammunition components. The ammunition or ammunition 
components purchased under this authority would be required to be 
demilitarized or used in such a way as the Secretary of the Army 
determines is consistent with the public interest.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
all receipts to be deposited into the Federal Treasury and 
would require an Army Audit Agency report during the first 
three years on the effect of this authorization.
Transfer of B-17 aircraft to museum (sec. 1066)
      The Senate amendment contained a provision (sec. 1070) 
that would authorize the Secretary of the Air Force to transfer 
the B-17 aircraft known as Picadilly Lilly to the Planes of 
Fame Museum in Chino, California. The provision would require 
that the plane be demilitarized and that the cost of the 
demilitarization be paid by the museum.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees note that the particular circumstances 
surrounding this case, including the museum's possession of a 
bill of sale transferring this plane from the Federal 
Government to the museum, are unique and that this provision 
does not establish any precedent regarding the transfer of 
aircraft.
Report on disposal of excess and surplus materials (sec. 1067)
      The Senate amendment contained a provision (sec. 1038) 
that would require the Secretary of Defense to submit a report 
to the Congress outlining the actions required to ensure that 
the Department better manages the Defense Reutilization and 
Marketing System so as to eliminate, or at least minimize, the 
problems.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that would 
incorporate the reporting requirements contained in the House 
report language regarding this issue.

                       Subtitle G--Other Matters

Authority for special agents of the Defense Criminal Investigative 
        Service to execute warrants and make arrests (sec. 1071)
      The House bill contained a provision (sec. 1051) that 
would grant the Secretary of Defense authority to authorize 
special agents of the Defense Criminal Investigative Service 
(DCIS) to execute and serve warrants and other process issued 
under the authority of the United States, and to authorize them 
to make warrantless arrests in certain situations. The 
authority of a special agent under this provision could only be 
exercised in accordance with guidelines prescribed by the 
Attorney General.
      The Senate amendment contained a similar provision (sec. 
1065).
      The Senate recedes with a clarifying amendment.
      Since the authority granted by this provision is to be 
exercised in accordance with guidelines prescribed by the 
Inspector General of the Department of Defense and approved by 
the Attorney General, proposed guidelines should be submitted 
by the Inspector General to the Attorney General as 
expeditiously as possible.
Study of investigative practices of military criminal investigative 
        organizations relating to sex crimes (sec. 1072)
      The House bill contained a provision (sec. 1052) that 
would require the Secretary of Defense to commission from the 
National Academy of Public Administration an independent study 
of the policies, procedures, and practices of the military 
criminal investigative organizations in investigating sex 
crimes and other criminal sexual misconduct in the armed 
forces.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Technical and clerical amendments (sec. 1073)
      The House bill contained a provision (sec. 1053) that 
would make various technical and clerical amendments to 
existing law.
      The Senate amendment contained a provision (sec. 556) 
that would make a technical correction to a cross-reference in 
section 14317(d) of title 10, United States Code.
      The conferees agree to a provision that would incorporate 
portions of these technical amendments.
Sustainment and operation of the Global Positioning System (sec. 1074)
      The Senate amendment contained a provision (sec. 1064) 
that would endorse and enact into law the presidential policy 
on the sustainment and operation of the Global Positioning 
System (GPS) issued in March 1996.
      The House bill contained no similar provision.
      The House recedes with an amendment that would provide 
that the Interagency GPS Executive Board, established pursuant 
to the presidential GPS policy, be the forum for interagency 
review of any proposed international agreement on the civil use 
of GPS. The amendment would also direct the Secretary of 
Defense not to accept any restriction on the GPS system 
proposed by the head of any other department or agency in the 
exercise of that official's regulatory authority that would 
adversely affect the military potential of GPS.
Protection of safety-related information voluntarily provided by air 
        carriers (sec. 1075)
      The House bill contained a provision (sec. 1056) that 
would protect from disclosure certain air safety information 
voluntarily submitted to the Department of Defense by an air 
carrier providing charter air transportation to the Department.
      The Senate amendment contained a similar provision (sec. 
1063).
      The Senate recedes with an amendment.
National Guard ChalleNGe Program to create opportunities for civilian 
        youth (sec. 1076)
      The House bill contained a provision (sec. 1057) that 
would provide the Secretary of Defense, acting through the 
Chief of the National Guard Bureau, authority to conduct a 
program known as the National Guard ChalleNGe Program and would 
authorize the Department of Defense to provide up to $50.0 
million in funding to support the program. The section would 
also limit the Department of Defense share of the costs of 
operating a program in each state to 75 percent in fiscal year 
1998--with that share decreasing by 5 percent each year, to 60 
percent in fiscal year 2001. Finally, the section would 
increase by $30.0 million the $20.0 million included in the 
budget request. To pay for the increase, the committee would 
reallocate to the ChalleNGe program the $15.0 million that it 
had intended to add to the Army National Guard military 
personnel accounts for initial entry and military skill 
training. In addition, the committee recommends a reduction in 
the amounts requested in the President's budget for Army and 
Air National Guard operations and maintenance funding by $7.5 
million each.
      The Senate amendment contained a provision (sec. 1052) 
that would extend the authorization for the National Guard 
Civilian Youth Opportunities Pilot Program until September 30, 
1998. The provision would limit the number of programs to 15, 
would limit the amount which may be obligated in support of the 
program during fiscal year 1998 to $20.0 million, and would 
require non-Federal funding to match the Federal Government 
contribution to the program in each state.
      The Senate recedes.
Disqualification from certain burial-related benefits for persons 
        convicted of capital crimes (sec. 1077)
      The House bill contained a provision (sec. 1060) that 
would prohibit the Secretary of Defense from providing military 
honors at the funeral of a person who has been convicted of a 
crime under state or federal law for which death is a possible 
punishment and for which the person was sentenced to death or 
life imprisonment without parole.
      The Senate amendment contained a provision (sec. 1076) 
that would disqualify persons convicted of a capital offense 
under Federal law from burial in cemeteries administered by the 
Secretary of Defense and the Secretary of Veterans Affairs and 
would prohibit such a person from receiving other burial 
benefits prescribed by federal law.
      The House recedes with an amendment that would 
incorporate the House provision and would prohibit a person 
convicted of a capital offense from being buried in any 
cemetery administered by the Secretary of Defense, as well as 
Arlington National Cemetery.
Restrictions on the use of human subjects for testing of chemical or 
        biological agents (sec. 1078)
      The Senate amendment contained a provision (sec. 1086) 
that would prohibit the United States government from using 
human subjects for chemical or biological tests or experiments. 
The provision would not apply to research, tests, or 
experiments related to medical, therapeutic, pharmaceutical, 
agricultural, and industrial activities, or research, tests, or 
experiments directly related to protection against toxic 
chemicals, or to protection against chemical or biological 
agents, U.S. military purposes not related to the use of 
chemical weapons, and law enforcement activities, including 
domestic riot control and the imposition of capital punishment. 
The provision would also require the Department of Defense to 
report to Congress annually on the conduct of chemical and 
biological tests involving human subjects, with a certification 
by the Secretary of Defense that informed consent was obtained 
from each subject, prior to testing, and would repeal section 
808 of the Department of Defense Appropriation Authorization 
Act for Fiscal Year 1978 (50 U.S.C. 1520).
      The House bill contained no similar provision.
      The House recedes with an amendment that would prohibit 
the Secretary of Defense, either directly or by contract, from 
conducting tests or experiments using chemical or biological 
agents on human subjects and would require the Secretary of 
Defense to report to Congress thirty days prior to date that 
the Department of Defense intends to conduct a chemical or 
biological test or experiment involving human subjects.
Treatment of military flight operations (sec. 1079)
      The Senate amendment contained a provision (sec. 1072) 
that would modify section 303(c) of title 49, United States 
Code, the Department of Transportation Act of 1966. Section 
303(c) currently requires the Department of Transportation to 
review transportation programs or projects that use parks, 
refuges, or historic sites and to determine that no alternative 
to the public land use is available and that harm to the public 
land is minimized. The Senate provision specifies that a 
military airspace proposal for national security-related 
activities is not a ``transportation program or project'' to 
which section 303(c) applies.
      The House bill contained no similar provision.
      The House recedes.
Naturalization of certain foreign nationals who serve honorably in the 
        Armed Forces during a period of conflict (sec. 1080)
      The Senate amendment contained a provision (sec. 1073) 
that would modify the Immigration and Naturalization Act, title 
8, United States Code, to permit foreign national service 
members who reenlist on board U.S. public vessels to qualify 
for naturalization without regard to the location of the 
vessel. The effective date of the provision would be 
retroactive to cover those foreign nationals who reenlisted on 
board U.S. vessels since January 1, 1990.
      The House bill contained no similar provision.
      The House recedes with an amendment that would remove a 
portion of the Senate provision waiving certain provisions of 
the ImmigrationAct of 1990 pertaining to processing 
applications for naturalization.
Applicability of certain pay authorities to members of specified 
        independent study organizations (sec. 1081)
      The Senate amendment contained a provision (sec. 1069) 
that would exempt retired federal employees and retired 
military personnel who have been appointed as members of the 
Commission on Servicemembers and Veterans Transition Assistance 
from limitations pertaining to receiving federal pay while 
concurrently receiving a federal retirement annuity.
      The House bill contained no similar provision.
      The House recedes with an amendment that would exempt 
retired Federal employees and retired military personnel who 
have been appointed as members of the National Defense Panel as 
well as those appointed to the Commission on Servicemembers and 
Veterans Transition Assistance.
Display of POW/MIA flag (sec. 1082)
      The House bill contained a provision (sec. 1054) that 
would expand the dates on which the POW/MIA flag must be flown, 
as well as the locations where it must be flown on the 
prescribed dates. In addition, the section would repeal 
existing law that terminates the requirement to display the 
POW/MIA flag upon the President's determination that the 
fullest possible accounting has been made of all members of the 
armed forces and civilian employees of the United States who 
have been identified as prisoner of war or missing in action in 
Southeast Asia.
      The Senate amendment contained a similar provision (sec. 
1077).
      The Senate recedes with a clarifying amendment.
Program to commemorate 50th anniversary of the Korean conflict (sec. 
        1083)
      The House bill contained a provision (sec. 374) that 
would authorize the Secretary of Defense, to begin to plan, 
coordinate, and execute a program to commemorate the 50th 
anniversary of the Marshall Plan and the Korean Conflict.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the Department of Defense to expend up to $100,000 for the 
planning, coordination, and execution of a program to 
commemorate the 50th anniversary of the Korean conflict.
Commendation of members of the Armed Forces and Government civilian 
        personnel who served during the cold war; certificate of 
        recognition (sec. 1084)
      The House bill contained a provision (sec. 1059) that 
would recognize the service and sacrifices of military and 
civilian personnel who served during the Cold War era.
      The Senate amendment contained a provision (sec. 536) 
that would authorize the secretaries of the military 
departments to award a medal to military personnel who served 
honorably during the Cold War era.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to develop a certificate recognizing 
service during the Cold War era and to make the certificate 
available upon request by qualified personnel.
Sense of Congress on granting of statutory Federal charters (sec. 1085)
      The conferees agree to include a provision that would 
express the sense of Congress that no statutory federal charter 
should be enacted unless the charter is approved by the 
Congress upon a favorable report by the committees of 
jurisdiction of the respective houses.
Sense of Congress regarding military voting rights (sec. 1086)
      The Senate amendment contained three provisions (sec. 
541-543) that would establish a short title of ``Military 
Voting Rights Act of 1997'', amend the Soldiers' and Sailors' 
Civil Relief Act of 1940 to preclude a military member from 
losing a claim to State residency for the purpose of voting in 
federal and state elections because of absence due to military 
orders, and amend the Uniformed and Overseas Citizens Absentee 
Voting Act to require each State to permit absent military 
voters to use absentee registration procedures and to vote by 
absentee ballot in elections for state and local offices, in 
addition to federal offices as provided in current law.
      The House bill contained no similar provision.
      The House recedes with an amendment that would substitute 
the sense of Congress that would affirm the absolute right of 
military members to vote in federal, state, and local 
elections; state that a military member's extended absence from 
a place of residency or domicile due to military orders would 
not be grounds for loss or change of residency or domicile; and 
call for legislation to confirm the voting rights of military 
personnel following a review of the need for legislation and 
the impact of such legislation on the right of states to set 
voter registration requirements.
      The conferees are concerned that, in the absence of 
legislation that would guarantee military voting rights in 
state and local elections, such rights are subject to 
challenge. Accordingly, the conferees direct that the Secretary 
of Defense, in consultation with the Attorney General, study 
the issue, determine the need for legislation, assess the 
consequences of such legislation for the right of states to set 
voter registration requirements, and recommend a course of 
action for the Congress, to include proposed legislation, if 
appropriate. The conferees direct that a report on the matters 
outlined above be submitted to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives not later than March 1, 1998. The 
conferees anticipate that both Committees will hold hearings to 
consider the need for such legislation in the coming year.
Designation of Bob Hope as an honorary veteran of the Armed Forces of 
        the United States (sec. 1087)
      The Senate amendment contained a provision (sec. 1074) 
that would designate Mr. Bob Hope as an honorary veteran of the 
Armed Forces of the United States.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees recognize that Bob Hope has contributed 
many years of service to enhancing the morale and welfare of 
members of the Armed Forces of the United States. He has 
traveled to virtually every post, camp, and station where 
military personnel are assigned overseas, including those in 
war zones, bringing entertainment, laughter, cheer, and a touch 
of home, sometimes at great personal risk.
      Thanks for the memories, Bob.
Five-year extension of aviation insurance program (sec. 1088)
      The Senate amendment contained a provision (sec. 1071) 
that would extend through September 30, 2002 the aviation 
insurance program authorized in section 44310 of title 49, 
United States Code.
      The House bill contained no similar provision.
      The House recedes.

                   Legislative Provisions Not Adopted

Naming of a DDG-51 class destroyer the U.S.S. Thomas F. Connolly
      The House bill contained a provision (sec. 1024) that 
would express the sense of Congress that the Secretary of the 
Navy should name one of the ships of the DDG-51 class of 
destroyers the U.S.S. Thomas F. Connolly in honor of Vice 
Admiral Connolly.
      The Senate amendment contained no similar provision.
      The House recedes.
Assignment of Department of Defense personnel to assist immigration and 
        naturalization service and custom service
      The House bill contained a provision (sec. 1032) that 
would authorize the Secretary of Defense to assign up to 10,000 
U.S. military personnel to assist the Immigration and 
Naturalization Service and the U.S. Customs Service in their 
border enforcement duties at the request of the Attorney 
General or the Secretary of the Treasury.
      The Senate amendment contained no similar provision.
      The House recedes.
Repeal of annual report requirement relating to training of special 
        operations forces with friendly foreign forces
      The House bill contained a provision (sec. 1042) that 
would amend section 2011 of title 10, United States Code, to 
repeal the requirement that the Department of Defense prepare 
an annual report relating to training of U.S. Special 
Operations Forces with the forcesof friendly foreign 
governments.
      The Senate bill contained no similar provision.
      The House recedes.
Armament retooling and manufacturing support initiative
      The House bill contained a provision (sec. 1065) that 
would expand the purpose of the Armament Retooling and 
Manufacturing Support Initiative to allow for the use of 
ammunition manufacturing facilities by other entities for the 
purpose of modernization, development, and restoration of the 
facilities. The authority would also allow the government to 
enter into 99 year leases with private entities that want to 
operate on these facilities.
      The Senate amendment contained no similar provision.
      The House recedes.
Long-term charter contracts for acquisition of auxiliary vessels for 
        the Department of Defense
      The House bill contained a provision (sec. 1501) that 
would authorize the Secretary of the Navy to enter into long-
term lease agreements for the procurement of combat logistics 
force (CLF) ships.
      The Senate amendment contained no similar provision.
      The House recedes.
Availability of certain fiscal year 1991 funds for payment of contract 
        claim
      The Senate amendment contained a provision (sec. 1007) 
that would authorize the Secretary of the Army to reimburse the 
Treasury judgment fund out of a certain fiscal year 1991 
appropriation for any judgment against the United States that 
might be rendered in the case Appeal of McDonnell Douglas 
Company, Number 48029, presently before the Armed Services 
Board of Contract Appeals.
      The House bill contained no similar provision.
      The Senate recedes.
Psychotherapist-patient privilege in the Military Rules of Evidence
      The Senate amendment contained a provision (sec. 1051) 
that would require the Secretary of Defense to submit to the 
President, for consideration for promulgation under article 36 
of the Uniform Code of Military Justice (10 U.S.C. 836), a 
recommended amendment to the Military Rules of Evidence that 
would recognize a testimonial privilege regarding disclosure by 
a psychotherapist of confidential communications with a 
patient. The privilege was to be applicable to patients who are 
not subject to the Uniform Code of Military Justice and, upon a 
determination by the Secretary of Defense, to individuals 
subject to the Code.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that the Department of Defense has 
already made significant progress toward drafting a recommended 
amendment to the Military Rules of Evidence incorporating the 
above-described privilege. The conferees urge the Department of 
Defense to submit the proposed amendment to the President at 
the earliest opportunity.
Acceptance and use of landing fees for use of overseas military 
        airfields by civil aircraft
      The Senate amendment contained a provision (sec. 1055) 
that would authorize a military service to accept and retain 
fees for the use of foreign-based military airfields by civil 
aircraft.
      The House bill contained no similar provision.
      The Senate recedes.
Protection of employees from retaliation for certain disclosures of 
        classified information
      The Senate amendment contained a provision (sec. 1068) 
that would amend the Whistleblower Protection Act to protect 
certain government employees from reprisal for disclosing 
classified information to certain members or employees of 
Congress in the course of providing evidence of violations of 
law or other wrongdoing.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that existing law prohibits reprisals 
against covered employees for disclosing information--whether 
classified or not--to the Congress, if that information relates 
to violations of law or regulation, gross mismanagement or 
waste, abuses of authority, or dangers to public health or 
safety. The conferees direct the Secretary of Defense to report 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
not later than March 1, 1998, on the following:
            (1) the mechanisms presently in law or regulation 
        under which federal or contractor employees may report 
        violations of law, fraud, waste, or abuse to the 
        Congress or within the executive branch where 
        classified information is involved;
            (2) the steps the Department of Defense has taken 
        to ensure that such employees are aware of those 
        mechanisms; and
            (3) the protections in effect in law or regulation 
        to ensure that the employees who use these mechanisms 
        are protected against reprisal.
Criminal prohibition on the distribution of certain information 
        relating to explosives, destructive devices, and weapons of 
        mass destruction
      The Senate amendment contained a provision (sec. 1075) 
that would amend section 842 of title 18, United States Code, 
to make it a crime for a person to teach, demonstrate the 
making of explosives, destructive devices or weapons of mass 
destruction, or to distribute information on the manufacture or 
use of explosives, destructive devices, and weapons of mass 
destruction.
      The House bill contained no similar provision.
      The Senate recedes.
Restrictions on quantities of alcoholic beverages available for 
        personnel overseas through Department of Defense sources
       The Senate amendment contained a provision (sec. 1090) 
that would require the Secretary of Defense to prescribe 
regulations relative to the quantity of alcoholic beverages 
that are available to service members assigned overseas through 
the Department of Defense, including alcoholic beverages 
available through nonappropriated fund instrumentalities. The 
regulations would be required to be consistent with the goal of 
preventing the blackmarket sale of American alcoholic beverages 
at overseas locations.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees remain concerned about the problem of the 
blackmarket resale of American products overseas, particularly 
alcoholic beverages in countries such as Korea. However, the 
conferees understand that the Department of the Army has taken 
administrative steps to reduce the opportunities for black 
marketing of alcoholic beverages in Korea and other overseas 
locations. Therefore, the conferees direct the Secretary of 
Defense to submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report that would describe the rules that 
govern the quantities of alcoholic beverages available to 
service members overseas and the administrative actions taken 
by each of the military departments to control the illegal 
resale of alcoholic beverages at overseas military 
installations. The report shall identify circumstances that 
contribute to the problem of blackmarket resale of products 
sold in exchanges in South Korea, and shall include an 
assessment of the extent to which South Korean trade 
restrictions on beer and other products are a contributing 
factor. The report should be submitted no later than March 31, 
1998.

           Title XI--Department of Defense Civilian Personnel

                     Legislative Provisions Adopted

Use of prohibited constraints to manage Department of Defense personnel 
        (sec. 1101)
      The Senate amendment contained a provision (sec. 1101) 
that would require the secretaries of the military departments 
and heads of defense agencies to certify directly to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives that the 
civilian workforce under their jurisdiction is not and has not 
during the preceding six months been the subject of any 
constraint or limitation in terms of man years, full-time 
equivalent positions, or maximum number of employees.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
reporting requirement to an annual report.
Veterans' preference status for certain veterans who served on active 
        duty during the Persian Gulf War (sec. 1102)
      The House bill contained a provision (sec. 323) that 
would permit veterans preference to be awarded to military 
personnel who served on active duty during the Persian Gulf 
War.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Repeal of deadline for placement consideration of involuntarily 
        separated military reserve technicians (sec. 1103)
      The Senate amendment contained a provision (sec. 1104) 
that would eliminate the time limitation within which 
involuntarily separated military reserve technicians would be 
given priority placement consideration.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Rate of pay of Department of Defense overseas teachers upon transfer to 
        General Schedule position (sec. 1104)
      The House bill contained a provision (sec. 321) that 
would provide the Secretary of Defense authority to adjust a 
Department of Defense Dependents Schools educator's salary up 
to 20 percent when that person is moved from a position under 
the Teaching Position (TP) pay system to a position under the 
General Schedule (GS) pay system.
      The Senate amendment contained a provision (sec. 1105) 
that would authorize the Secretary of Defense to prescribe 
regulations to control the amount of salary increase awarded to 
certain overseas professional educators who transfer from 
positions compensated under the ``Teaching Pay'' system to 
positions compensated under the ``General Schedule'' pay 
system.
      The House recedes with an amendment that would clarify 
the Senate provision.
Garnishment and involuntary allotment (sec. 1105)
      The Senate amendment contained a provision (sec. 1107) 
that would restore the requirement that the cost of garnishment 
or involuntary allotments be borne by the federal employee.
      The House bill contained no similar provision.
      The House recedes.
Extension and revision of voluntary separation incentive pay authority 
        (sec. 1106)
      The Senate amendment contained a provision (sec. 1103) 
that would extend the authority for the Voluntary Separation 
Incentive Pay Program for the Department of Defense until 
September 30, 2001.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Use of approved fire-safe accommodations by Government employees on 
        official business (sec. 1107)
      The House bill contained a provision (sec. 322) that 
would require that each government agency ensure that not less 
than 90 percent of the commercial-lodging room nights for 
employees of that agency be booked at approved accommodations 
and would require that each government agency establish 
explicit procedures to meet this requirement.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would retain 
the 90 percent standard; require the Federal Emergency 
Management Agency to prepare an accurate fire-safe hotel list; 
and require the General Services Administration to submit a 
one-time report on implementation of the requirements.
Navy higher education pilot program regarding administration of 
        business relationships between Government and private sector 
        (sec. 1108)
      The Senate amendment contained a provision (sec. 1108) 
that would establish a pilot program of higher education at the 
Naval Undersea Warfare Center and would authorize $2.5 million 
to be appropriated to fund the program.
      The House bill contained no similar amendment.
      The House recedes with an amendment that would provide 
the Secretary of the Navy the authority to establish and fund a 
pilot program of higher education available to employees of the 
Naval Undersea Warfare Center, employees of the Naval Sea 
Systems Command, and employees of the Acquisition Center for 
Excellence of the Navy.
Authority for Marine Corps University to employ civilian faculty 
        members (sec. 1109)
      The House bill contained a provision (sec. 903) that 
would authorize the Secretary of the Navy to employ civilian 
professors at any of the seven colleges within the Marine Corps 
University whose principal course of instruction is 10-months 
or more long.
      The Senate amendment contained a similar provision (sec. 
1102).
      The Senate recedes with a clarifying amendment.

              Title XII--Matters Relating to Other Nations

                     Legislative Provisions Adopted

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Limitation on the use of funds for the deployment of U.S. forces in 
        Bosnia beyond June 30, 1998 (secs. 1201-1206)
      The House bill contained provisions (secs. 1201, 1210-
1212) on Bosnia that would require the Secretary of Defense to 
submit a report to Congress identifying the non-military tasks 
performed by U.S. armed forces participating in the NATO 
Stabilization Force (SFOR) in Bosnia; would direct the 
President to report on the political and military conditions in 
Bosnia and the costs associated with the continued presence of 
U.S. armed forces in Bosnia, and would limit the expenditure of 
a portion of the fiscal year 1998 defense funds authorized and 
appropriated for operations in Bosnia until such time as the 
report is submitted to Congress. In addition, a provision in 
the House bill would limit the use of fiscal year 1998 defense 
funds for the deployment of U.S. armed forces in Bosnia after 
June 30, 1998.
      The Senate amendment contained a provision (sec. 1083) 
that would express the sense of the Senate that U.S. ground 
combat forces should be withdrawn from Bosnia by June 30, 1998 
and should not participate in a follow-on force; that a Western 
European Union-led, or a NATO-led, force without U.S. ground 
combat forces are suitable for a follow-on force after June 30; 
that, if necessary, the United States may appropriately provide 
support, including command and control, intelligence, logistics 
and, if required, a ready reserve force in the region; and that 
the President should inform European allies of the views 
expressed by the Congress, strongly urging them to take 
appropriate steps to prepare a follow-on force to maintain 
peace in Bosnia, and consult with Congress on any support 
provided by the United States to a WEU-led or NATO-led follow-
on force after June 30, 1998.
      The conferees agree to a series of provisions that would 
express findings of the Congress regarding the deployment of 
U.S. armed forces in Bosnia and express the sense of Congress 
that a WEU-led or NATO-led force without participation of U.S. 
ground combat forces may be suitable for a follow-on force to 
the SFOR, and that the United States may decide to provide 
appropriate support to such a follow-on force. Another 
provision would limit the use of fiscal year 1998 funds 
authorized for the Department of Defense after June 30, 1998 
for the deployment of U.S. ground combat forces in Bosnia, 
unless the President certifies to the Congress that the 
continued presence of U.S. ground combat forces is in the 
national security interests, and that it will remain the policy 
of the United States that U.S. ground forces will not be used 
as civil police in Bosnia. Concurrent with this certification, 
the President would be required to submit a report on the 
rationale for a continued U.S. armed forces presence, the 
number of U.S. military personnel to be deployed in and around 
Bosnia, the expected duration of the deployment, the mission 
and objectives of the U.S. armed forces deployed in and around 
Bosnia after June 30, 1998, the exit strategy and incremental 
costs associated with the deployment of the U.S. military in 
and around Bosnia after June 30, 1998, and other issues 
associated with extending the presence of the U.S. military 
forces in and around Bosnia. In addition, the conferees agree 
to a provision that would require the President to submit 
concurrently with the certification and report, a supplemental 
appropriations request for such amounts as are necessary to 
continue the deployment of U.S. military forces in and around 
Bosnia after June 30, 1998.
      Another provision (sec. 1204) would require the Secretary 
ofDefense to submit two reports to Congress regarding 
activities and tasks carried out by U.S. forces assigned to the 
Stabilization Force (SFOR), or any successor force to SFOR.
      Lastly, the conferees agree to a provision (sec. 1205) 
that would require the President to submit a report to Congress 
by February 1, 1998 on the political and military conditions in 
Bosnia, that would include, but not be limited to, an 
assessment of progress made in implementing the Dayton Peace 
Agreement, other matters related to a follow-on force to SFOR, 
the possible involvement of U.S. military forces supporting 
peacekeeping activities in Bosnia following the withdrawal of 
U.S. ground combat forces from Bosnia, and a detailed 
explanation and timetable for withdrawing U.S. ground combat 
forces from Bosnia by June 30, 1998.

       Subtitle B--Export Controls on High Performance Computers

Export controls on high performance computers (secs. 1211-1215)
      The House bill contained provisions (secs. 1231-1234) 
that would express concerns about recent reports that United 
States-origin supercomputers were obtained by countries of 
proliferation concern for possible use in weapons-related 
activities and that these countries have refused to allow the 
United States to conduct post-shipment verification of the 
supercomputers to ensure that they are not being used for 
military purposes. The provision would prohibit the export, or 
re-export, of supercomputers with a composite theoretical 
performance of more than 2,000 millions of theoretical 
operations per second (MTOPS) to any Tier III country without 
the prior written approval of the Secretary of Commerce, the 
Secretary of Defense, the Secretary of Energy, the Secretary of 
State, and the Director of the Arms Control and Disarmament 
Agency. It would also require the President to report to 
Congress on all supercomputers with a computational capability 
of over 2,000 MTOPS that have been exported to all countries 
since January 1996. Finally, it would require post-shipment 
verification of U.S. origin supercomputers that exceed 2,000 
MTOPS that have been exported to Tier III countries and require 
a report on the results of post-shipment verification.
      The Senate amendment contained a provision (sec. 1080) 
that would require the General Accounting Office (GAO) to 
conduct a study on the national security risks of selling 
supercomputers with a computational capability of 2,000-7,000 
MTOPS to end-users in Tier III countries and to conduct an 
assessment of foreign availability of supercomputers in the 
2,000-7,000 MTOPS range. The provision would require the 
Secretary of Commerce to publish a list of military and nuclear 
end-users and establish procedures by which U.S. exporters may 
seek information on questionable end-users.
      The conferees agree to a series of provisions. One 
provision (sec. 1211) would require that no computer with a 
composite theoretical performance of more than 2,000 MTOPS, or 
such other composite theoretical performance level established 
by the President, may be exported or re-exported to covered 
countries without a license if the sale without a license is 
objected to in writing by the Secretary of Commerce, the 
Secretary of Defense, the Secretary of Energy, the Secretary of 
State, or the Director of the Arms Control and Disarmament 
Agency. Such objection would have to be made within ten days of 
receiving the notice of proposed export, or re-export. The 
provision would allow the President, after consultation with 
the same department and agency heads, to change the threshold 
of the composite theoretical performance levels that would 
require the aforementioned ten day review before being exported 
without license to covered countries. However, the provision 
would delay implementation of such a threshold adjustment for 
180 days after receipt by Congress of a report that justifies 
the change of the threshold. In addition, the provision would 
allow the President to add or delete countries from the list of 
covered countries, after consultation with the same department 
and agency heads, but would delay implementation of deletions 
from the list for 120 days after receipt by Congress of a 
report that justifies the deletion, and would preclude the 
deletion of certain countries of proliferation concern from 
this list. Another provision (sec. 1212) would require a report 
to Congress on the sales of high performance computers to Tier 
III countries since January 1996. The conferees also agree to a 
provision (sec. 1213) that would require post-shipment 
verification of high performance computers sold to covered 
countries and an annual report on the results of post-shipment 
verification. Lastly, the conferees direct the GAO to study the 
national security risks of exporting high performance computers 
to Tier III countries and to provide an analysis of the foreign 
availability of high performance computers (sec. 1214).

                       Subtitle C--Other Matters

Temporary use of general purpose vehicles and nonlethal military 
        equipment under acquisition and cross servicing agreements 
        (sec. 1222)
      The House bill contained a provision (sec. 1204) that 
would amend section 2350(1) of title 10, United States Code, to 
clarify the conditions under which the Department of Defense 
may enter into acquisition and cross servicing agreements, and 
define certain provisions of the United States Munitions List 
to apply under those conditions in order to permit the 
Department of Defense to use general purpose vehicles and 
nonlethal military equipment in contingency military 
operations.
      The Senate amendment contained no similar provision.
      The conferees direct the Secretary of Defense to provide 
a report to the congressional defense committees by May 1, 1998 
on the Department's use of this authority to enter acquisition 
and cross servicing agreements that would permit the temporary 
use of general purpose vehicles and nonlethal military 
equipment in contingency military operations.
Sense of Congress and reports regarding financial costs of enlargement 
        of the North Atlantic Treaty Organization (sec. 1223)
      The House bill contained a provision (sec. 1207) that 
would limit the amount spent by the United States on enlarging 
the membership of the North Atlantic Treaty Organization (NATO) 
to ten percent of the cost of expansion, or a total of $2.0 
billion, whichever is less, for fiscal years 1998 through 2010.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
findings on the differing assessments of the costs of enlarging 
NATO in reports submitted to Congress by the Department of 
Defense, the Congressional Budget Office and the RAND 
Corporation, and the General Accounting Office; would express 
the sense of Congress that the costs associated with enlarging 
the Alliance will be major factors during Senate consideration 
of the instruments of ratification, and the congressional 
authorization and appropriation of funds. The provision would 
require the Secretary of Defense to provide to Congress by 
March 31, 1998, an assessment of the NATO analysis of the 
military requirements and the estimated financial costs to the 
Alliance of integrating Poland, the Czech Republic, and Hungary 
into NATO. In addition, the provision would require the 
Secretary of Defense to submit with the fiscal year 1999 budget 
a report on the costs of NATO enlargement reflected in the 
Department of Defense budget and with appropriate detail in the 
budget justification materials submitted to Congress.
Sense of Congress regarding expansion of the North Atlantic Treaty 
        Organization (sec. 1224)
      The Senate amendment contained a provision (sec. 1087) 
that would express the sense of the Senate commending the North 
Atlantic Treaty Organization (NATO) for its commitment to 
review the prospect of further enlarging the Alliance in 1999, 
and for its recognition of progress made by Romania and 
Slovenia in meeting the guidelines for prospective membership 
in NATO.
      The House bill contained no similar provision.
      The House recedes with a technical and clarifying 
amendment.
Sense of the Congress relating to level of United States military 
        personnel in the East Asia and Pacific region (sec. 1225)
      The House bill contained a provision (sec. 1208) that 
would express the sense of Congress that the United States 
should maintain at least approximately 100,000 U.S. military 
personnel in the East Asia-Pacific region to ensure stability 
in that critical area.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Report on future military capabilities and strategy of the People's 
        Republic of China (sec. 1226)
      The House bill contained a provision (sec. 1203) that 
would require the Department of Defense to prepare an 
assessment of thefuture military capabilities and strategy of 
the People's Republic of China.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Sense of Congress on need for Russian openness on the Yamantau Mountain 
        Project (sec. 1227)
      The House bill contained a provision (sec. 1209) that 
would express the sense of Congress for the need for more 
openness on the part of the Russian government on the purpose 
of a massive underground facility at Yamantau Mountain.
      The Senate amendment did not contain a similar provision.
      The Senate recedes with a clarifying amendment.
      The United States and Russia have been working to 
establish a new strategic relationship based on cooperation and 
openness, which has resulted in the conclusion of several far-
reaching arms control agreements designed to further reduce 
bilateral threats and to limit the proliferation of weapons of 
mass destruction. Despite good faith efforts on both sides to 
comply with the letter and spirit of these agreements, the 
conferees are concerned about reports that a massive 
underground facility is currently under construction at 
Yamantau Mountain. In seeking answers to questions about the 
purpose of the project at Yamantau Mountain, it appears that 
the Russian Federation has deliberately misled the United 
States about the purpose of this facility on a number of 
occasions. The facility appears to be designed to survive a 
nuclear war and appears to exceed reasonable defense 
requirements.
      The Russian Federation has offered numerous stories about 
the construction activities at Yamantau Mountain and the city 
of Mezhgorye and the purpose of such activities. In 1991 and 
1992, the commandant of Beloretsk-15 and Beloretsk-16, People's 
Deputy Leonid A. Tskirkunov told two stories about these 
activities. First, he said they were building a mining and ore-
processing complex. Later, he changed that explanation to one 
of constructing an underground food and clothing warehouse. In 
1992, a former communist official in the region, M.Z. 
Shakiorov, alleged that the Russian Federation was building a 
shelter for its national leadership, in case of war.
      In 1996, sources from the Russian newspaper Segodnya 
claimed that the facility was associated with a nuclear 
retaliatory command and control system for strategic missiles 
known as ``Dead Hand.'' This claim was denied by General Igor 
Sergeyev, the Commander-in-Chief of the Strategic Rocket 
Forces. In that same year, a Deputy of the State Assembly, R. 
Zhukov, claimed the facility at Yamantau Mountain belonged to 
the ``atomic scientists.''
      The United States has learned that Russia's 1997 budget 
lists the Yamantau Mountain project as a Ministry of Defense 
installation on a closed territory. However, First Deputy of 
Defense Andre Kokoshin denied Ministry of Defense involvement 
with the activity.
      The conferees are concerned that the Russian Federation 
should be more forthcoming in providing the United States with 
more information on the Yamantau Mountain Project. The sense of 
Congress expressed the need for the Federation to provide the 
United States with a detailed explanation of the purpose of the 
Yamantau Mountain Project, and that the Russian Government 
allow the United States Delegations to visit the facility, and 
facilities in the southern and northern settlements located 
near Yamantau.
Assessment of the Cuban threat to United States national security (sec. 
        1228)
      The Senate amendment contained a provision (sec. 1046) 
that would require the Department of Defense to submit a report 
on an assessment of the threat posed by Cuba to U.S. national 
security.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Report on Helsinki Joint Statement (sec. 1229)
      The Senate amendment contained a provision (sec. 1045) 
that would require the President to submit a report to Congress 
on the agreement reached by the United States and the Russian 
Federation on future reductions in nuclear forces and the 
United States approach to implementing the Helsinki Joint 
Statement, to include verification implications.
      The House bill contained no similar provision.
      The House recedes.
Commendation of Mexico on free and fair elections (sec. 1230)
      The Senate amendment contained a provision (sec. 3601) 
that would express a sense of Congress that Mexico is to be 
commended for its holding of free and fair elections on July 6, 
1997.
      The House bill contained no similar provision.
      The House recedes.
Sense of Congress regarding Cambodia (sec. 1231)
      The Senate amendment contained a provision (sec. 3602) 
that would express a sense of Congress that the conditions that 
existed in Cambodia prior to the actions of Hun Sen, who ousted 
his democratically-elected co-Prime Minister Prince Ranariddh, 
should be restored, and that assistance by the United States 
and other donor nations to Cambodia should be suspended until 
that time.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Congratulating Governor Christopher Patten of Hong Kong (sec. 1232)
      The Senate amendment contained a provision (sec. 3603) 
that would express a sense of Congress that Christopher Patten, 
British governor of Hong Kong until the time the British colony 
was turned over to the People's Republic of China, is to be 
commended for his leadership of Hong Kong under British rule.
      The House bill contained no similar provision.
      The House recedes.

              Title XIII--Arms Control and Related Matters

                     Legislative Provisions Adopted

Presidential report concerning detargeting of Russian strategic 
        missiles (sec. 1301)
      The House bill contained a provision (sec. 1206) that 
would require the President to certify to Congress by January 
1, 1998 whether the United States is able to verify by 
technical means that Russian intercontinental ballistic 
missiles (ICBMs) are not targeted at the United States; the 
length of time it would take for a detargeted Russian ICBM to 
be retargeted against a site in the United States; and whether 
a detargeted Russian ICBM would be automatically retargeted 
against a site in the United States in the event of an 
accidental launch.
      The Senate amendment contained no similar provision.
      The conferees note that the Secretary of Defense was 
directed in the House report on H.R. 3230 (H. Rept. 104-563), 
the National Defense Authorization Act for Fiscal Year 1997, to 
provide a report on the verifiability and military significance 
of the Moscow Declaration of January 14, 1994. On May 16, 1997, 
the Secretary submitted a report to Congress which stated that 
the United States could not independently verify that Russian 
intercontinental ballistic missiles were no longer targeted at 
the United States and that detargeted Russian ICBMs could be 
quickly retargeted within minutes. With regard to detargeted 
U.S. ICBMs, the report stated that these missiles could be 
retargeted in a short time.
      The conferees believe that efforts between the United 
States and the Russian Federation to lower the threat of a 
massive nuclear exchange are laudable goals and encourage 
measures that would make a substantive contribution toward 
enhancing strategic stability. The conferees agree that it is 
important to have a full understanding of what particular 
agreements mean relative to achieving those goals. The 
conferees support a careful analysis of the advantages and 
limitations of the missile detargeting agreement. Therefore, 
the conferees agree to a provision that would require the 
President to submit a report to Congress that addresses issues 
regarding the detargeting of Russian strategic missiles.
Limitation on retirement or dismantlement of strategic nuclear delivery 
        systems (sec. 1302)
      The Senate amendment contained a provision (sec. 1054) 
that would preclude the reduction of certain strategic delivery 
systems unless the START II Treaty enters into force and the 
President waives this prohibition. The provision would also 
prohibit substantial early deactivation of strategic nuclear 
delivery systems, such as warhead removal, unless the Secretary 
of Defense meets certain requirements, as specified in the 
provision. Finally, the provision would require the Secretary 
of Defense to prepare a plan for the contingency sustainment of 
a START I force beyond 1998, should START II not enter into 
force by 2004.
      The House bill contained no similar provision.
      The House recedes with an amendment that would prohibit 
the obligation of funds available to the Department of Defense 
during fiscal year 1998 to implement an agreement that results 
in substantial early deactivations of U.S. strategic forces 
until the President makes certain determinations.
Assistance for facilities subject to inspection under the Chemical 
        Weapons Convention (sec. 1303)
      The Senate amendment contained a provision (sec. 1057) 
that would allow the Department of Defense (DOD), through the 
On-Site Inspection Agency (OSIA), to provide technical 
assistance to companies that are subject to routine or 
challenge inspection under the terms of the Chemical Weapons 
Convention (CWC), provided that OSIA is reimbursed for such 
assistance by the U.S. National Authority established under the 
CWC.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees note that the CWC imposes new obligations 
on private U.S. companies that may lead them to seek assistance 
from DOD in preparing their facilities for inspections to be 
carried out under the Convention's terms. The conferees 
recognize that the On-Site Inspection Agency possesses the 
technical experience to assist companies in this process. 
However, this is not part of OSIA's mission and the DOD would 
incur significant costs in providing such assistance. To this 
end, the conferees agree that DOD may not provide any CWC-
related assistance to private companies unless the Secretary of 
Defense determines that the Department will be reimbursed for 
the costs incurred in providing such assistance.
      The conferees note that the CWC implementing legislation 
passed by the Senate contains a similar provision. The 
conferees expect DOD to adhere to the additional requirements 
that govern the process by which the Department is to be 
reimbursed.
Transfers of authorizations for high-priority counterproliferation 
        programs (sec. 1304)
      The Senate amendment contained a provision (sec. 217) 
that would authorize the Secretary of Defense to transfer up to 
$50.0 million from funds authorized in fiscal year 1998 for the 
Department of Defense to conduct counterproliferation programs, 
projects, and activities that are identified as a high priority 
by the Counterproliferation Review Committee.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Advice to the President and Congress regarding the safety, security, 
        and reliability of United States nuclear weapons stockpile 
        (sec. 1305)
      The Senate amendment contained a provision (sec. 1084) 
that wouldextend to the directors of Department of Energy 
nuclear weapons laboratories, the Commander in Chief of the U.S. 
Strategic Command, and any member of the Joint Nuclear Weapons Council 
protection against adverse action by employees of the Federal 
Government in cases where those individuals gave advice or opinions to 
the President or Congress relating to a safety, security, or 
reliability issue with the nuclear weapons stockpile.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify 
section 3159(b) of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201) to require that reports 
on problems with the nuclear weapons stockpile prepared by the 
directors of the nuclear weapons laboratories be submitted to 
the President, in addition to Congress, and to extend 
protection to the Department of Energy nuclear weapons 
production plant managers. Section 3159(b) would be modified to 
require the Department of Energy Assistant Secretary for 
Defense Programs to forward any such reports in their entirety, 
with any comments the Assistant Secretary deems appropriate, 
within ten days.
      The conferees note that the Congress has frequently 
expressed its view that the stewards of the nuclear weapons 
stockpile must freely give their best advice on the safety and 
reliability of the stockpile. The conferees note that earlier 
legislation has provided for reports on such advice.
Reconstitution of Commission to Assess the Ballistic Missile Threat to 
        the United States (sec. 1306)
       The conferees agree to include a provision that would 
extend by one year the time for the Commission to Assess the 
Ballistic Missile Threat to the United States, established 
pursuant to Subtitle B of Title XIII of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201), to 
complete its original charter.
Sense of Congress regarding the relationship between environmental laws 
        and United States obligations under the Chemical Weapons 
        Convention (sec. 1307)
       The Senate amendment contained a provision (sec. 1058) 
that would express the sense of the Senate that the President 
should use the authority available under existing law to ensure 
that the United States is able to construct and operate the 
facilities necessary to destroy the United States stockpile of 
lethal chemical agents and munitions within the time allowed by 
the Chemical Weapons Convention (CWC) and that the President 
should encourage negotiations between appropriate Federal 
Government officials and officials of the State and local 
governments concerned to attempt to meet their concerns about 
the actions being taken to carry out the obligations of the 
United States under the convention.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
provision to express the sense of Congress regarding 
obligations of the United States under the CWC and would add 
findings from a February 1997 General Accounting Office study 
regarding matters that affect the schedule and costs of the 
chemical demilitarization program.
Extension of counterproliferation authorities for support of United 
        Nations Special Commission on Iraq (sec. 1308)
       The House bill contained a provision (sec. 1202) that 
would extend the authority through fiscal year 1998 for the 
Department of Defense (DOD) to continue to provide support to 
the United Nations Special Commission on Iraq (UNSCOM).
      The Senate amendment contained a similar provision (sec. 
1056).
      The Senate recedes with a technical amendment.
      The conferees support the extension of this authority 
given ongoing concerns over Iraq's continued possession of 
weapons of mass destruction and missile delivery systems. 
However, the conferees are concerned that the DOD role in 
providing assistance has transitioned from a short-term 
requirement to a semi-permanent element of the effort to 
contain Iraq.
      Pursuant to United Nations Security Council Resolutions 
986 and 1111, which took effect December 10, 1996 and June 8, 
1997, respectively, Iraq is authorized to sell limited 
quantities of oil with most of the proceeds going to pay for 
humanitarian needs and to support UNSCOM activities. In 
addition, UNSCOM activities are also funded by frozen Iraqi 
assets and from direct and indirect contributions from other 
nations. The conferees would note that the Department of 
Defense is the primary source of U.S. government funding for 
the UNSCOM mission, providing specialized equipment and 
services otherwise unavailable to UNSCOM.
      The conferees believe that continued vigilance is 
warranted to ensure that Iraq does not acquire or maintain 
proscribed military capabilities. However, the conferees do not 
believe that the costs of providing specialized support to 
UNSCOM should be permanently borne by the Department of 
Defense. To this end, the conferees support efforts by the 
Department to seek reimbursement for expenses incurred in 
providing support to UNSCOM and encourage the administration to 
negotiate formal agreements to this effect.
Annual report on moratorium on use by Armed Forces of antipersonnel 
        landmines (sec. 1309)
       The House bill contained a provision (sec. 1055) that 
would require the Secretary of Defense, after consultation with 
the Chairman of the Joint Chiefs of Staff, to certify to 
Congress prior to the implementation of any moratorium by law 
on the use of antipersonnel landmines (APL) by U.S. Armed 
Forces, that any such moratorium would not adversely affect the 
ability of U.S. Armed Forces to defend themselves, until such 
time as effective substitutes exist to replace antipersonnel 
landmines.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would contain 
findings describing the actions and decisions by the President 
relating to U.S. policy regarding antipersonnel landmines and 
the status of current law; express the sense of Congress 
regarding implementation of a landmine moratorium and support 
for development of alternatives toantipersonnel landmines. The 
provision would also require the Secretary of Defense to submit an 
annual report describing the military utility of the continued U.S. 
deployment of antipersonnel landmines, progress in developing and 
fielding systems that are effective substitutes for antipersonnel 
landmines, their costs and an estimated timetable for developing and 
fielding those systems, the number and type of pure antipersonnel and 
mixed anti-tank mine systems, the cost and effect of the elimination of 
the former and the impact of their elimination on the deterrence and 
warfighting ability of U.S. forces, and the benefits to U.S. military 
and civilian personnel of an international treaty banning the 
production, use, transfer and stockpiling of antipersonnel landmines.
      The conferees endorse the President's September 17, 1997 
pledge to increase U.S. support for worldwide demining efforts.
      Further, the conferees believe that international 
support, and increased funding, for practical efforts such as 
clearing landmines and providing medical assistance and 
rehabilitation to the wounded, could be highly effective in 
reducing the landmine casualty count and reclaiming land for 
its intended use.

  Title XIV--Cooperative Threat Reduction With States of Former Soviet 
                                 Union

                     Legislative Provisions Adopted

Cooperative threat reduction (CTR) program (secs. 1401-1410)
       The budget request included $382.2 million for the 
Cooperative Threat Reduction (CTR) program.
      The House bill contained provisions (secs. 1101-1111) 
that would: authorize $284.7 million for the Cooperative Threat 
Reduction (CTR) program, a $97.5 million reduction to the 
budget request; specify CTR programs; allocate fiscal year 1998 
funding for the various CTR programs and activities; prohibit 
the use of CTR funds for specific purposes; prohibit the 
obligation of CTR funds until various reports, notifications, 
and certifications are submitted to the Congress; make prior 
year unobligated CTR balances available for three fiscal years; 
and make fiscal year 1998 CTR funds available for three fiscal 
years. The House bill would also add funds for the Department 
of Energy (DOE) budget to carry out nuclear reactor core 
conversion activities in Russia under the auspices of the CTR 
program.
      The Senate amendment contained provisions (secs. 1009 and 
1085) that would authorize the budget request of $382.2 
million; would make funds authorized in fiscal year 1997 for 
international border security activities available for three 
years; and would provide the Secretary of Defense authority to 
exceed the sublimits established in fiscal years 1996 and 1997 
for CTR activities. The provisions would also limit the 
obligation or expenditure of certain fiscal year 1998 funds 
until receipt of either a certification by the President 
regarding Russian progress in solving outstanding compliance 
issues under bilateral chemical weapons agreements, or a 
presidential certification that U.S. national security 
interests would be undermined if CTR chemical weapons 
destruction activities were not carried out.
      The conferees agree to a series of provisions that would 
authorize $382.2 million for the CTR program, establish 
sublimits for CTR activities and would provide the Secretary of 
Defense with authority to exceed the established sublimits in 
fiscal years 1996, 1997, and 1998 for strategic elimination 
activities in Russia and Ukraine. The obligation of fiscal year 
1998 CTR funds is contingent upon the submission of various 
reports, notifications, and certifications to the Congress. The 
use of the word ``agreements'' in these provisions does not 
preclude the possibility that the conditions set forth can be 
met by the implementing agreements routinely entered into 
between the Department of Defense (DOD) and the CTR partner for 
specific projects.
      The conferees reiterate their traditional support for CTR 
assistance in the elimination of strategic nuclear weapons 
systems in Russia and Ukraine. However, given the economic and 
financial conditions in Russia, the conferees are concerned 
about Russia's willingness to contribute its share of the costs 
of eliminating its strategic offensive arms and its declared 
stockpile of chemical weapons. As noted in recent U.S. 
resolutions of ratification of arms control agreements, the 
U.S. believes that Russia must contribute its share of the 
costs of complying with its arms control commitments.
      The conferees note that the Department of Defense is 
seeking congressional approval of fiscal year 1998 funds for 
certain projects where fiscal year 1997 funds have not yet been 
fully obligated because of the lack of the necessary 
implementing agreements. As a general management principle, the 
conferees believe that fiscal year 1998 funds should not be 
obligated for those projects until the fiscal year 1997 CTR 
funds have been obligated.
      The conferees are also concerned about recent reports 
that Russia has applied taxes, duties, overhead charges, and 
other arbitrary assessments on U.S. assistance. The conferees 
agree to a provision that would require the Secretary of 
Defense to report to the Congress on the impact of these 
charges on the CTR program, and what can be done to reduce or 
eliminate such charges.
      Finally, the conferees maintain their belief that the 
proliferation of weapons of mass destruction, delivery systems, 
components, materials, and related technologies, represents a 
growing threat to the United States and to U.S. interests. In 
this regard, the conferees note that section 1424 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 104-201) authorized $15.0 million of CTR funds for 
international border security. This program would provide 
assistance to customs officials and border guard officials in 
the independent states of the former Soviet Union, such as 
Azerbaijan, Armenia, Georgia, the Baltic states, and other 
countries in Eastern Europe. The conferees understand that 
funds authorized for this activity have not been obligated or 
expended. The conferees note the continued congressional 
support for this activity and direct the Department to take 
appropriate actions to establish this activity and to obligate 
the funds available as soon as possible. These activities 
provide an early line of defense by improving the detection and 
interdiction of such weapons, materials, and technologies 
before they cross international borders.

         Title XV--Federal Charter for the Air Force Sergeants

                     Legislative Provisions Adopted

Federal Charter for the Air Force Sergeants Association (secs. 1501-
        1516)
      The Senate amendment contained a series of provisions 
(sec. 1201-1216) that would grant a federal charter for the Air 
Force Sergeants Association.
      The House bill contained no similar provision.
      The House recedes.
      The leadership of the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives recognize the current moratorium on granting of 
federal charters and agree that, in the future, amendments to 
the National Defense Authorization Bill that would grant a 
federal charter should not be included in a conference 
agreement unless favorably recommended by the committees of 
jurisdiction.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

                                overview

      The budget request for fiscal year 1998 included 
$8,383,248,000 for military construction and family housing.
      The House bill would authorize $9,123,748,000 for 
military construction and family housing.
      The Senate amendment would provide $9,077,061,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $9,173,748,000 for military construction and family housing, 
including general reductions and termination of prior year 
projects.



    FY 1998/1999 BUDGET ESTIMATES--FY 1998 BRAC MILITARY CONSTRUCTION   
                                PROJECTS                                
                        [In thousands of dollars]                       
------------------------------------------------------------------------
 State and installation/location          Description           Amount  
------------------------------------------------------------------------
              Army: BRAC III Construction, Fiscal Year 1998             
                                                                        
  Texas:                                                                
    Fort Bliss...................  Repair Aircraft Hanger          3,650
                                    (46865) III.                        
                                                            ------------
                                     Subtotal Army Texas...        3,650
                                   Total for Army BRAC III         3,650
                                    Construction, FY 1998.              
                                                                        
               Army BRAC IV Construction, Fiscal Year 1998              
                                                                        
  Alaska:                                                               
    Fort Wainwright..............  Missile Test Facility             600
                                    (46159) IV.                         
                                                            ------------
                                     Subtotal Army Alaska..          600
  California:                                                           
    Camp Parks...................  Army Reserve Center             9,500
                                    Facility (46206) IV.                
    Sierra Army Depot............  Consolidated Security             900
                                    (45872) IV.                         
    Travis Air Force Base........  Administrative Facility         2,250
                                    (47187) IV.                         
                                                            ------------
                                     Subtotal Army                12,650
                                    California.                         
  Colorado:                                                             
    Fitzsimons Army Medical Ctr..  Sanitary Sewer (46341)          2,100
                                    IV.                                 
    Fort Carson..................  Readiness Group Admin           2,500
                                    Facility (46413) IV.                
                                                            ------------
                                     Subtotal Army Colorado        4,600
  District of Columbia:                                                 
    Walter Reed AMC..............  Nurse Training Facility         1,500
                                    (463342).                           
                                                            ------------
                                     Subtotal Army District        1,500
                                    of Columbia.                        
  Maryland:                                                             
    Fort Detrick.................  Health Clinic (46329) IV          650
    Fort Meade...................  Administrative Facility         6,300
                                    (47237) IV.                         
                                                            ------------
                                     Subtotal Army Maryland        6,950
  Michigan:                                                             
    Detroit Arsenal..............  Storage Facility (46300)        5,900
                                    IV.                                 
                                                            ------------
                                     Subtotal Army Michigan        5,900
  Missouri:                                                             
    Fort Leonard Wood............  Range Modifications            17,500
                                    (46094) IV.                         
                                   Military Operations in          6,900
                                    Urbanized Terrain                   
                                    Facility (45892) IV.                
                                                            ------------
                                     Subtotal Army Missouri       24,400
  New York:                                                             
    Fort Totten..................  Storage Facility (46258)        1,900
                                    IV.                                 
                                                            ------------
                                     Subtotal Army New York        1,900
  Nevada:                                                               
    Hawthorne Army Ammo Pit......  Warehouse (46217) IV....        1,550
    Nellis Air Force Base........  Administrative Facility         3,850
                                    (46291) IV.                         
                                                            ------------
                                     Subtotal Army Nevada..        5,400
  South Carolina:                                                       
    Fort Jackson.................  DoD Polygraph                   4,600
                                    Instructional Fac                   
                                    (45839) IV.                         
                                                            ------------
                                     Subtotal Army South           4,600
                                    Carolina.                           
  Virginia:                                                             
    Fort Pickett.................  Reserve Center Building         3,100
                                    (46354) IV.                         
                                                            ------------
                                     Subtotal Army Virginia        3,100
  Washington:                                                           
    Fort Lewis...................  CHPPM Ctr for Health            3,150
                                    Promotion (46354) IV.               
                                                            ------------
                                     Subtotal Army                 3,150
                                    Washington.                         
Various Locations................  Program Management IV...        3,750
                                   Total for Army BRAC IV         78,500
                                    Construction, FY 1998.              
                                                                        
                   Navy BRAC III Construction, FY 1998                  
                                                                        
  California:                                                           
    NAS, Lemoore.................  Administrative Office           2,586
                                    (186T) III.                         
    MCAS, Miramar................  Support Facilities             48,773
                                    (007T) III.                         
    Pacific Fleet AWTC, San Diego  Gym (387T) III..........        3,501
    NSB, San Diego...............  Pier Renovation (124T)            891
                                    III.                                
    PWC, San Diego...............  Public Works Shop (175T)        1,821
                                    III.                                
                                                            ------------
                                     Subtotal Navy                57,572
                                    California.                         
  Florida:                                                              
    NAD, Jacksonville............  Administrative Building         5,074
                                    (220T) III.                         
    NAS, Jacksonville............  Aviation Physiology             3,383
                                    Training Building                   
                                    (831T) III.                         
    NTC, Orlando.................  Facility Modifications          2,686
                                    (001T) III.                         
                                                            ------------
                                     Subtotal Navy Florida.      111,143
  Georgia:                                                              
    NAS, Atlanta.................  Marine Reserve Training         9,053
                                    Facility (906T) III.                
                                                            ------------
                                     Subtotal Navy Georgia.        9,053
  Hawaii:                                                               
    PMRF, Barking Sands..........  Ordnance Facilities               612
                                    (297T) III.                         
    MCAS, Kaneohe Bay............  Aviation Supply                 1,491
                                    Facilities (274T) III.              
                                   Utilities Upgrade (504T)        2,168
                                    III.                                
                                   Ordnance Facilities             1,160
                                    (508T) III.                         
    NS, Pearl Harbor.............  Fleet Imaging Center            1,005
                                    (524T) III.                         
    PWC, Pearl Harbor............  Utility System                  1,492
                                    Modifications (539T)                
                                    III.                                
                                                            ------------
                                     Subtotal Navy Hawaii..        7,928
  Virginia:                                                             
    NS, Norfolk..................  Administrative Facility           995
                                    (360T) III.                         
                                                            ------------
                                     Subtotal Navy Virginia          995
  Washington:                                                           
    Navy Hospital, Bremerton.....  Outpatient Clinic (019T)       10,409
                                    III.                                
                                                            ------------
                                     Subtotal Navy                10,409
                                    Washington.                         
  Wisconsin:                                                            
    Fort McCoy...................  Equipment Maintenance           2,295
                                    Facility (701T) III.                
                                                            ------------
                                     Subtotal Navy                 2,295
                                    Wisconsin.                          
                                   Total for Navy BRAC III        99,395
                                    Construction, FY 1998.              
                                                                        
               Navy BRAC IV Construction, Fiscal Year 1998              
                                                                        
  California:                                                           
    MCAS, Miramar................  Administrative/Training         1,403
                                    Spaces (020U) IV.                   
    NAS, North Island............  Operational Facility and       28,750
                                    Parking (820U) IV.                  
                                   Intermediate Maintenance        1,273
                                    Facility (822U) IV.                 
                                                            ------------
                                     Subtotal Navy                31,426
                                    California.                         
  District of Columbia:                                                 
    Commandant, Naval District     Naval Sea Systems Cmd          86,045
     Washington.                    Hdq Relocation (088U)               
                                    IV.                                 
                                                            ------------
                                     Subtotal Navy District       86,045
                                    of Columbia.                        
  Florida:                                                              
    NAS, Jacksonville............  Medical/Dental Additions        2,985
                                    (231U) IV.                          
                                   S-3 Naval Maintenance           1,329
                                    Trng Grp Mods (239U) IV.            
                                                            ------------
                                     Subtotal Navy Florida.        4,314
  Guam:                                                                 
    Naval Activities.............  Building Renovation               597
                                    (416U) IV.                          
                                                            ------------
                                     Subtotal Navy Guam....          597
  Pennsylvania:                                                         
    NSWC, Philadelphia...........  Accoustics R&D Facility         6,151
                                    (185U) IV.                          
                                                            ------------
                                     Subtotal Navy                 6,151
                                    Pennsylvania.                       
  Virginia:                                                             
    NAS, Oceana..................  Flight Simulator                8,998
                                    Building Addition                   
                                    (160U) IV.                          
                                   Corrosion Control Hangar        4,775
                                    (576U) IV.                          
                                   Hangar Utilities                1,244
                                    Improvements (165U) IV.             
                                   F/A 18 Aviation                 2,686
                                    Maintenance Additions               
                                    (164U) IV.                          
                                   Renovate/Addition               5,671
                                    Training Facility                   
                                    (161U) IV.                          
    FISC, Williamsburg...........  Building Renovation             2,437
                                    (028U) IV.                          
                                   Cargo Staging Area              1,443
                                    (029U) IV.                          
                                                            ------------
                                     Subtotal Navy Virginia       27,254
                                     Total Navy BRAC IV          155,787
                                    Construction, FY 1998.              
                                                                        
            Air Force BRAC III Construction, Fiscal Year 1998           
                                                                        
  California:                                                           
    Travis AFB...................  Land Purchase                   2,055
                                    (XDAT973300) III.                   
                                   Total for Air Force BRAC        2,055
                                    III Construction, FY                
                                    1998.                               
                                                                        
               Air Force BRAC III Family Housing, FY 1998               
                                                                        
  California:                                                           
    Travis AFB...................  Improve Family Housing         46,010
                                    (XDAT950000) III.                   
                                   Total for Air Force BRAC       46,010
                                    III Family Housing, FY              
                                    1998.                               
                                                                        
                 Air Force BRAC IV Construction, FY 1998                
                                                                        
  California:                                                           
    Beale AFB....................  Dining Facility                 2,100
                                    (PRJ891009R1) IV.                   
                                   938 Engineering Install         8,100
                                    Sqd (PRJY911023R2) IV.              
                                   Enlisted Dormitory              9,000
                                    (PRJY93103R2) IV.                   
                                   Add to Child Development        2,100
                                    Center (PRJY95301R1) IV.            
                                   Vehicle Maintenance             1,450
                                    Facility (PRJY953009R1)             
                                    IV.                                 
                                   Air Force Res KC-135            1,700
                                    Flight Sim                          
                                    (PRJY953046R1) IV.                  
    Palmdale Plant 42............  Add/Alt QLA Secure                580
                                    Warehouse                           
                                    (PRJY953008R2) IV.                  
                                                            ------------
                                     Subtotal Air Force           25,030
                                    California.                         
  Colorado:                                                             
    Falcon AFB...................  Satellite Control              16,000
                                    Facility (GLEN973008A)              
                                    IV.                                 
                                   Add to Dining Facility            500
                                    (GLEN973009) IV.                    
                                   Technical Support               6,400
                                    Facility (GLEN973010)               
                                    IV.                                 
                                   Alter Operations Support          760
                                    Facility (GLEN973020)               
                                    IV.                                 
                                   Add to Fitness Center             300
                                    (GLEN983023) IV.                    
    Peterson AFB.................  Enlisted Dormitory              1,200
                                    (TDKA963004) IV.                    
                                                            ------------
                                     Subtotal Air Force           25,160
                                    Colorado.                           
  New York:                                                             
    Fort Drum....................  Vehicle OPS Heated              1,700
                                    Parking (WOXG959613) IV.            
                                   Add to Fire Station               300
                                    (FPBB969510) IV.                    
                                                            ------------
                                     Subtotal Air Force New        2,000
                                    York.                               
  Ohio:                                                                 
    Wright-Patterson AFB.........  Renovte QLA Support             2,500
                                    Facility (PRJY921012R1)             
                                    IV.                                 
                                                            ------------
                                     Subtotal Air Force            2,500
                                    Ohio.                               
  Oklahoma:                                                             
    Vance AFB....................  Add to Child Development          330
                                    Center (XTLF983303) IV.             
                                                            ------------
                                     Subtotal Air Force              330
                                    Oklahoma.                           
  Texas:                                                                
    Brooks.......................  Add/Alter YAD/textile           3,900
                                    Laboratory (CNBC993000)             
                                    IV.                                 
    Kelly AFB....................  Comm Infrastructure             2,500
                                    Support (MBPB993225R1)              
                                    IV.                                 
    Lackland AFB.................  838th Engineer                  5,600
                                    Installation Sqd                    
                                    (MBPB993201R1) IV.                  
                                   Child Development Center          480
                                    (MBPB993209R2) IV.                  
                                   Add to Auto Hobby Shop          1,100
                                    (MBPB993222R1) IV.                  
    Laughlin AFB.................  Engine Staging Facility         2,950
                                    (MXDP973004R2) IV.                  
                                                            ------------
                                     Subtotal Air Force           16,530
                                    Texas.                              
Various Locations................  Planning and Design             4,157
                                    (BCL98RD4) IV.                      
                                   Total for Air Force BRAC       75,707
                                    IV Construction, FY                 
                                    1998.                               
                                                                        
                Air Force BRAC IV Family Housing, FY 1998               
                                                                        
  Texas:                                                                
    Lackland AFB.................  General Officers                  790
                                    Quarters (MBPB993203R2)             
                                    IV.                                 
                                   Total for Air Force BRAC          790
                                    IV Family Housing, FY               
                                    1998.                               
------------------------------------------------------------------------

      DLA and DISA had no projects relating to any BRAC round 
requested in FY 1998.

                            Title XXI--Army

                            Fiscal Year 1998

Overview
      The House bill would authorize $2,055,364,000 for Army 
military construction and family housing programs for fiscal 
year 1998.
      The Senate amendment would authorize $1,951,478,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $2,010,466,000 for Army military construction and family 
housing for fiscal year 1998.
      The conferees agree to a general reduction of $36,600,000 
in the authorization of appropriations for the Army military 
construction account. The general reduction is to be offset by 
savings from adjustments to foreign currency exchange rates for 
military construction projects and the support of military 
family housing outside the United States. The general reduction 
shall not cancel any military construction authorized by of 
this Act.

                       ITEMS OF SPECIAL INTEREST

Planning and design, Army
      The Senate report on S. 924 (S. Rept. 105-29) directed 
that, of the amount authorized for appropriations for Army 
planning and design, not more than $1,000,000 may be directed 
toward the design of the gymnasium at the United States 
Military Academy, New York.
      The conferees direct that from the funds authorized for 
appropriations for planning and design, the Secretary of the 
Army may use funds as necessary to initiate planning and design 
activities for the renovation of the gymnasium at the United 
States Military Academy, New York and authorize $3,100,000 for 
planning and design activities for the construction of the 
National Ground Intelligence Center, Charlottesville, Virginia.
Improvements of military family housing, Army
      The conferees recommend that, within authorized amounts 
for improvements of military family housing and facilities, the 
Secretary of the Army execute the following projects: 
$9,600,000 for Whole Neighborhood Revitalization (52 units) at 
Fort Richardson, Alaska; $8,300,000 for Whole Neighborhood 
Revitalization (32 units) at Fort Wainwright, Alaska; 
$7,000,000 for Whole Neighborhood Revitalization (106 units) at 
Fort Riley, Kansas; $6,000,000 for Whole Neighborhood 
Revitalization, Phase IV (60 units) at Fort Campbell, Kentucky; 
$5,400,000 for Whole Neighborhood Revitalization (56 units) at 
the United States Military Academy, New York; and $5,000,000 
for Whole Neighborhood Revitalization (48 units) at Fort 
Belvoir, Virginia.

                     Legislative Provisions Adopted

Correction in authorized uses of funds, Fort Irwin, California (sec. 
        2105)
      The Senate amendment contained a provision (sec. 2105) 
that would authorize the Secretary of the Army to construct a 
heliport at Fort Irwin, California, using funds authorized and 
appropriated in fiscal years 1995 and 1996 for construction of 
the National Training Center Airfield, Fort Irwin, California. 
The provision would make available $20.0 million for the 
construction of the heliport.
      The House bill contained a similar provision (sec. 2105).
      The House recedes with a technical amendment.

                            Title XXII--Navy

Overview
      The House bill would authorize $2,053,025,000 for Navy 
military construction and family housing programs for fiscal 
year 1998.
      The Senate amendment would authorize $1,898,924,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $2,027,339,000 for Navy military construction and family 
housing for fiscal year 1998.
      The conferees agree to a general reduction of $17,163,000 
in the authorization of appropriations for the Navy military 
construction account. $8,463,000 of the reduction is to be 
offset by savings from favorable bids, reduction in overhead 
costs, and cancellation of projects due to force structure 
changes. $8,700,000 of the reduction is to be offset by savings 
from adjustments to foreign currency exchange rates for 
military construction projects and the support of military 
family housing outside the United States. The general reduction 
shall not cancel any military construction authorized by title 
XXII of this Act.

                       ITEMS OF SPECIAL INTEREST

Improvements of military family housing, Navy
      The conferees recommend that, within authorized amounts 
for improvements to military family housing and facilities, the 
Secretary of the Navy execute the following projects: 
$4,193,000 for Whole House Revitalization (120 units) at Naval 
Air Warfare Center China Lake, California; $7,700,000 for Whole 
House Revitalization (64 units) at Public Works Center Great 
Lakes, Illinois; $9,000,000 for Whole House Revitalization (90 
units) at Naval Air Warfare Center Patuxent River, Maryland; 
$2,863,000 for Whole House Revitalization (37 units) at Camp 
Lejeune, North Carolina; and $6,000,000 for Whole House 
Revitalization (83units) at Marine Corps Air Station Cherry 
Point, North Carolina.

                     Legislative Provisions Adopted

Authorization of military construction project at Naval Station, 
        Pascagoula, Mississippi, for which funds have been appropriated 
        (sec. 2205)
      The House bill contained a provision (sec. 2205) that 
would authorize $4,900,000 to extend the west quaywall at Naval 
Station, Pascagoula, Mississippi, for which funds were 
previously appropriated pursuant to the Military Construction 
Appropriations Act for Fiscal Year 1997 (Public Law 104-196).
      The Senate amendment contained a similar provision (sec. 
2205).
      The Senate recedes with a technical amendment.
Increase in authorization for military construction projects at Naval 
        Station Roosevelt Roads, Puerto Rico (sec. 2206)
      The Senate amendment contained a provision (sec. 2206) 
that would amend section 2201(b) of the Military Construction 
Act for Fiscal Year 1997 (Division B of Public Law 104-201) to 
increase the authorization for the construction of a barracks 
at Naval Station Roosevelt Roads, Puerto Rico from $23.6 
million to $24.1 million. The section would also make certain 
conforming changes.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                         Title XXIII--Air Force

                            Fiscal Year 1998

Overview
      The House bill would authorize $1,810,120,000 for Air 
Force military construction and family housing programs for 
fiscal year 1998.
      The Senate amendment would authorize $1,793,949,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $1,791,640,000 for Air Force military construction and 
family housing for fiscal year 1998.
      The conferees agree to a general reduction of $36,158,000 
in the authorization of appropriations for the Air Force 
military construction account. $23,858,000 of the reduction is 
to be offset by savings from favorable bids, reduction in 
overhead costs, and cancellation of projects due to force 
structure changes. $12,300,000 of the reduction is to be offset 
by savings from adjustments to foreign currency exchange rates 
for military construction projects and the support of military 
family housing outside the United States. The general reduction 
shall not cancel any military construction authorized by title 
XXIII of this Act.

                       ITEMS OF SPECIAL INTEREST

Improvements of military family housing, Air Force
      The conferees recommend that, within authorized amounts 
for improvements of military family housing and facilities, the 
Secretary of the Air Force execute the following projects: 
$5,000,000 for family housing improvements (72 units) at Cannon 
Air Force Base, New Mexico; $4,600,000 for family housing 
improvements (60 units) at Tinker Air Force Base, Oklahoma; 
$7,000,000 for family housing improvements (78 units) at 
Charleston Air Force Base, South Carolina; and $5,000,000 for 
family housing improvements (50 units) at Shaw Air Force Base, 
South Carolina.

                     Legislative Provisions Adopted

Authorization of military construction project at McConnell Air Force 
        Base, Kansas, for which funds have been appropriated (sec. 
        2305)
      The House bill contained a provision (sec. 2305) that 
would authorize $6,700,000 for a consolidated education center 
at McConnell Air Force Base, Kansas, for which funds were 
previously appropriated pursuant to the Military Construction 
Appropriations Act, 1997 (Public Law 104-196).
      The Senate amendment contained a similar provision (sec. 
2305).
      The House recedes with a technical amendment.

                      Title XXIV--Defense Agencies

                            Fiscal Year 1998

Overview
      The House bill would authorize $650,907,000 for Defense 
Agencies military construction and family housing programs for 
fiscal year 1998.
      The Senate amendment would authorize $717,677,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $684,016,000 for Defense Agencies military construction and 
family housing for fiscal year 1998. The conferees agree to a 
general reduction of $1,200,000 in the authorization of 
appropriations for the Defense Agencies military construction 
account. The general reduction is to be offset by savings from 
adjustments to foreign currency exchange rates for military 
construction projects and the support of military family 
housing outside the United States. The general reduction shall 
not cancel any military constructions authorized by title XXIV 
of this Act.

                     Legislative Provisions Adopted

Clarification of authority relating to fiscal year 1997 project at 
        Naval Station, Pearl Harbor, Hawaii (sec. 2406)
      The Senate amendment contained a provision (sec. 2406) 
that would amend the table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 1997 (Division B 
of Public Law 104-201), to change the location of the Special 
Operations Command military construction project from Ford 
Island, Pearl Harbor, Hawaii, to Naval Station, Pearl City 
Peninsula, Pearl Harbor, Hawaii.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Correction in authorized uses of funds, McClellan Air Force Base, 
        California (sec. 2407)
      The Senate amendment contained a provision (sec. 2407) 
that would authorize the Secretary of Defense to use funds 
appropriated and authorized in fiscal year 1995 for life saving 
improvements at McClellan Air Force Base Hospital. The funds 
would be authorized for use in the following manner: (1) $3.7 
million for the construction of an addition to the Aeromedical 
Clinic, Anderson Air Force Base, Guam; and (2) $6.5 million for 
the construction of an occupational health clinic, Tinker Air 
Force Base, Oklahoma.
      The House bill contained a similar provision (sec. 2406).
      The House recedes with a technical amendment.
Modification of authority to carry out fiscal year 1995 projects (sec. 
        2408)
      The Senate amendment contained a provision (sec. 2408) 
that would amend section 2401 of the Military Construction 
Authorization Act for Fiscal Year 1995, as amended. The 
provision would authorize an increase of funding for the 
construction of the Chemical Demilitarization Facilities at 
Pine Bluff Arsenal, Arkansas, from $115.0 million to $134.0 
million, and at Umatilla Army Depot, from $186.0 million to 
$187.0 million, due to cost increases resulting from a delay in 
receiving the appropriate permits.
      The House bill contained a similar provision (sec. 2407).
      The House recedes with a technical amendment.

   Title XXV--North Atlantic Treaty Organization Security Investment 
                                Program

                            Fiscal Year 1998

Overview
      The House bill would authorize $166,300,000 for the U.S. 
contribution to the NATO Security Investment Program for fiscal 
year 1998.
      The Senate amendment would authorize $152,600,000 for 
this purpose.
      The conferees agree to authorize $152,600,000 for the 
United States contribution to the NATO Security Investment 
Program.

            Title XXVI--Guard and Reserve Forces Facilities

                            Fiscal Year 1998

Overview
      The House bill would authorize $327,208,000 for military 
construction and land acquisition for fiscal year 1998 for the 
Guard and Reserve components.
      The Senate amendment would authorize $507,279,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $448,033,000 for military construction and land acquisition 
for fiscal year 1998. This authorization would be distributed 
as follows:

Army National Guard.....................................    $113,750,000
Army Reserve............................................      66,267,000
Naval/Marine Corps Reserve..............................      47,329,000
Air National Guard......................................     190,444,000
Air Force Reserve.......................................      30,243,000

      The conferees agree to a general reduction of $7,900,000 
in the authorization of appropriations for the Air Force 
Reserve military construction account. The general reduction is 
to be offset by savings from favorable bids, reduction in 
overhead costs, and cancellation of projects due to force 
structure changes. The general reduction shall not cancel any 
military constructions authorized by title XXVI of this Act.

                       items of special interest

Reserve construction project, Oakdale, Pennsylvania
      The conference agreement provides $6.0 million for phase 
I construction of a reserve center with an organizational 
maintenance shop and area maintenance support center at 
Oakdale, Pennsylvania to support the Army Reserve. The 
conferees urge the Secretary of the Army to make every effort 
to include the appropriate level of funding for the remaining 
phases of construction in the fiscal year 1999 budget request.

                     Legislative Provisions Adopted

Authorization of military construction projects for which funds have 
        been appropriated (sec. 2602)
      The House bill contained a provision (sec. 2602) that 
would authorize $5,900,000 for the Army National Guard for 
additions and alterations to an aviation support facility at 
Hilo, Hawaii, and$4,800,000 for the Naval Reserve for a 
bachelor enlisted quarters at Naval Air Station, New Orleans, 
Louisiana, for which funds were previously appropriated pursuant to the 
Military Construction Appropriations Act, 1997 (Public Law 104-196).
      The Senate amendment contained a similar provision (sec. 
2602).
      The Senate recedes.
Army Reserve construction project, Camp Williams, Utah (sec. 2603)
      The House bill contained a provision (sec. 2603) that 
would authorize the Secretary of the Army to accept financial 
or in-kind contributions from the State of Utah for land 
acquisition, site preparation, and relocation, in connection 
with the construction of a reserve center and organization 
maintenance shop in Salt Lake City, Utah.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary and the State to enter into an agreement under 
which the State would provide financial or in-kind 
contributions for land acquisition, site preparation, 
relocation, and other costs in connection with the construction 
of a reserve center and organization maintenance shop at Camp 
Williams, Utah.

        Title XXVII--Expiration and Extension of Authorizations

                     Legislative Provisions Adopted

Extension of authorizations of certain fiscal year 1995 projects (sec. 
        2702)
      The House bill contained a provision (sec. 2702) that 
would provide for selected extension of certain fiscal year 
1994 military construction authorizations until October 1, 
1998, or the date of the enactment of the Act authorizing funds 
for military construction for fiscal year 1999, whichever is 
later.
      The Senate amendment contained a similar provision (sec. 
2702).
      The House recedes with a technical amendment.
Extension of authorizations of certain fiscal year 1994 projects (sec. 
        2703)
      The Senate amendment contained a provision (sec. 2703) 
that would provide for selected extension of certain fiscal 
year 1994 military construction authorizations until October 1, 
1998, or the date of the enactment of the Act authorizing funds 
for military construction for fiscal year 1998, whichever is 
later.
      The House bill contained a similar provision (sec. 2703).
      The House recedes with a technical amendment.
Extension of authorizations of certain fiscal year 1993 projects (sec. 
        2704)
      The House bill contained a provision (sec. 2704) that 
would provide for selected extension of certain fiscal year 
1993 military construction authorizations until October 1, 
1998, or the date of the enactment of the Act authorizing funds 
for military construction for fiscal year 1999, whichever is 
later.
      The Senate amendment contained a similar provision (sec. 
2704).
      The Senate recedes.
Extension of availability of funds for construction of relocatable 
        over-the-horizon radar, Naval Station Roosevelt Roads, Puerto 
        Rico (sec. 2706)
      The House bill contained a provision (sec. 2706) that 
would provide for an extension of authority to construct a 
relocatable over-the-horizon radar at Naval Station Roosevelt 
Roads, Puerto Rico authorized by the Defense Appropriations 
Act, 1995 (Public Law 103-335) until October 1, 1998, or the 
date of the enactment of the Act authorizing funds for military 
construction for fiscal year 1999, whichever is later.
      The Senate amendment contained a similar provision (sec. 
2409).
      The Senate recedes with a technical amendment.

                    Title XXVIII--General Provisions

                     Legislative Provisions Adopted

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

Use of mobility enhancement funds for unspecified minor construction 
        (sec. 2801)
      The House bill contained a provision (sec. 2801) that 
would authorize the use of funds made available for mobility 
enhancement for unspecified minor construction. Under the 
provision, mobility enhancement funds could not be used for 
unspecified minor construction if the cost of the construction 
project would exceed $1,500,000.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Limitation on the use of operation and maintenance funds for facility 
        repair projects (sec. 2802)
      The House bill contained a provision (sec. 2802) that 
would clarify the definition of repair of facilities using 
operations and maintenance funds.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Leasing of military family housing, United States Southern Command, 
        Miami, Florida (sec. 2803)
      The House bill contained a provision (sec. 2803) that 
would amend section 2828 of title 10, United States Code, to 
authorize the Secretary of the Army to lease not more than 
eight housing units in the vicinity of Miami, Florida, for key 
and essential personnel of United States Southern Command, as 
determined by the Secretary, for which the annual rental of 
such units would exceed the expenditure limitations established 
by law. This section would establish certain new expenditure 
limitations related to such housing units.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Use of financial incentives provided as part of energy savings and 
        water conservation activities (sec. 2804)
      The Senate amendment contained a provision (sec. 2804) 
that would amend section 2865 of title 10, United States Code, 
to authorize the Secretary of Defense to credit financial 
incentives received from gas or electric utilities to an 
appropriation designated by the Secretary. The impact of this 
authority would be reflected in the Secretary's annual energy 
report. The provision would also include a conforming 
amendment.
      The House bill contained a similar provision (sec. 2804).
      The House recedes with a technical amendment.
Congressional notification requirements regarding use of Department of 
        Defense housing funds for investments in nongovernmental 
        entities (sec. 2805)
      The House bill contained a provision (sec. 2805) that 
would provide for a 30-day notice-and-wait requirement on 
requests to use funds appropriated or otherwise made available 
under the authority of subchapter IV of chapter 169 of title 
10, United States Code, as a cash contribution by the 
Department of Defense toward the investment cost in any project 
entered into under those authorities.
      The Senate amendment contained no similar provision.
      The Senate recedes.

        Subtitle B--Real Property and Facilities Administration

Increase in ceiling for minor land acquisition projects (sec. 2811)
      The House bill contained a provision (sec. 2811) that 
would increase the maximum limit for minor land acquisitions 
from $200,000 to $500,000.
      The Senate amendment contained a similar provision (sec. 
2801).
      The Senate recedes.
Permanent authority regarding conveyance of utility systems (sec. 2812)
      The House bill contained a provision (sec. 1423) that 
would authorize the secretary of a military department to 
convey, with or without consideration, a utility system, or 
part of a utility system, to a municipal, private, regional, 
district, or cooperative utility company or other entity. Such 
utility systems could include electrical generation and supply 
systems, water supply and treatment systems, waste water 
collection and treatment system, steam, hot or chilled water 
generation and supply systems, natural gas supply systems, and 
sanitary landfills or lands to be used for sanitary fills. The 
provision would require the secretary concerned to submit a 21-
day notice-and-wait announcement, to include a report 
containing an economic analysis of the proposed conveyance, to 
Congress prior to entering into any agreement to convey a 
utility.
      The Senate amendment contained a provision (sec. 2802) 
that would authorize the service secretaries to convey all or 
part of government utility systems located on military 
installations to commercial or public utilities. The utilities 
that may be conveyed include, but are not limited to: 
electrical generation and supply; water treatment; water 
supply; wastewater collection and treatment; steam, hot, 
chilled water generation and supply, and natural gas supply. 
The conveyance would be for fair market value, either as a 
lump-sum payment or as a reduction in utility charges, 
consistent with applicable Federal and State laws or 
regulations, for a period sufficient to amortize the monetary 
value of the utility system, including any conveyed real 
property. Any lump sum payment received would be credited to an 
appropriation available for the purchase of like utility 
services or to an appropriation for the construction of energy 
and water conservation projects or improvements to other 
utility systems at the installation. The provision would waive 
the cost comparison study between civilian and government 
workers required by chapter 146 of title 10, United States 
Code. The secretaries would not be authorized to enter an 
agreement to convey until 21 days after the service secretaries 
submit an economic analysis to the congressional defense 
committees.
      The House recedes with an amendment that would strike the 
waiver of a cost comparison study between civilian and 
government workers required by chapter 146 of title 10, United 
States Code. The amendment would add the authority to convey a 
system for the transmission of telecommunications and would 
require that if the payment for the utility is in the form of 
reduced utility rates, that these rates be consistent with 
Federal and state regulations. The amendment would also make 
certain technical corrections.
Administrative expenses for certain real property transactions (sec. 
        2813)
      The House bill contained a provision (sec. 2812) that 
would authorize the secretary of a military department to 
accept reimbursement from non-federal entities for the cost of 
certain real estate services and transactions, including real 
estate exchanges, grants, and licenses, done at the request of, 
and for the benefit of, those entities.
      The Senate amendment contained a similar provision (sec. 
2803).
      The Senate recedes with an amendment that would delete 
the conveyances of real property as a transaction covered by 
this authority.
Screening of real property to be conveyed by the Department of Defense 
        (sec. 2814)
      The Senate amendment contained a provision (sec. 2805) 
that would require the Administrator of the General Services 
Administration (GSA) to screen for federal interest any real 
property whose conveyance is authorized by the Congress. The 
Administrator would be required to complete a screen of the 
property within 30 days of enactment. If the Administrator 
establishes a federal interest, the property would be conveyed 
pursuant to the Federal Property and Administrative Services 
Act of 1949. If it is determined that there is no other federal 
interest and the property is surplus to the United States 
Government, the Secretary of the appropriate military 
department would be authorized to transfer the real property to 
the designated recipient.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Administrator to screen the property authorized for 
conveyance for federal interest. Upon notification by the 
Administrator of the interest of a Federal agency in the 
property, the Secretary concerned would be required to notify 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives. The 
notification shall include the name of the agency, the proposed 
use of the property, and the estimated fair market value of the 
property and improvements. The Secretary shall take no further 
action for 180 days. If, after that period, the Congress has 
not rescinded the conveyance, the Secretary may convey the 
property as specified in the legislation. This requirement 
would apply to any conveyances of real property enacted in any 
legislation after December 31, 1997.
Disposition of proceeds from sale of Air Force Plant 78, Brigham City, 
        Utah (sec. 2815)
      The Senate amendment contained a provision (sec. 2831) 
that would authorize the Secretary of the Air Force to use the 
funds deposited by the Administrator of General Services in the 
account established under section 204(h)(2)(A) of the Federal 
Property and Administrative Services Act of 1949 from the sale 
of Air Force Plant 78, Brigham City, Utah, for maintenance and 
repair of facilities, or environmental restoration, at other 
industrial plants of the Air Force.
      The House bill contained a similar provision (sec. 2813).
      The House recedes with a technical amendment.
Fire protection and hazardous materials protection at Fort Meade, 
        Maryland (sec. 2816)
      The Senate amendment contained a provision (sec. 1047) 
that would require the Secretary of the Army to submit a plan 
to the congressional defense committees outlining requirements 
for fire protection services and hazardous materials protection 
services at Fort Meade, Maryland. The report would also outline 
a schedule for the implementation of the plan and a detailed 
list of the funding options available.
      The House bill contained no similar provision.
      The House recedes.

            Subtitle C--Defense Base Closure and Realignment

Consideration of military installations as sites for new Federal 
        facilities (sec. 2821)
      The House bill contained a provision (sec. 2821) that 
would require the head of a federal agency to consult with the 
Secretary of Defense on the availability of federal property or 
facilities at military installations to be closed or realigned 
prior to acquiring non-federal real property.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the head of the federal agency to consult with and obtain the 
concurrence of the redevelopment authority regarding the 
availability and suitability of a former military installation 
as the location for a new or replacement federal facility. This 
requirement would expire on July 31, 2001.
Adjustment and diversification assistance to enhance performance of 
        military family support services by private sector sources 
        (sec. 2822)
      The Senate amendment contained a provision (sec. 368) 
that would amend section 2391(b)(5) of title 10, United States 
Code, to authorize the Secretary of Defense, through the Office 
of Economic Development, to make grants, conclude cooperative 
agreements, and supplement other federal funds to assist state 
or local governments in supporting the efforts of the 
Department of Defense in privatizing family support activities. 
These support services would include, but would not be limited 
to, privatization and outsourcing of military family housing, 
family housing referrals, child development centers, and 
library services.
      The House bill contained no similar provision.
      The House recedes.
Security, fire protection, and other services at property formerly 
        associated with Red River Army Depot, Texas (sec. 2823)
      The Senate amendment contained a provision (sec. 1088) 
that would authorize the Secretary of the Army to enter into an 
agreement to provide the local redevelopment authority at Red 
River Army Depot, fire, security, and hazardous material 
response services on a reimbursable basis.
      The House bill contained no similar provision.
      The House recedes.
Report on closure and realignment of military installations (sec. 2824)
      The Senate amendment contained a provision (sec. 2832) 
that would require the Secretary of Defense to submit to the 
congressional defense committees a report on the costs and 
savings attributable to the four base closure rounds conducted 
under the base closure laws and on the need, if any, for 
additional base closure rounds. The report would have to be 
submitted not later than the fiscal year 2000 budget. The 
Congressional Budget Office and the Comptroller General would 
be required to conduct a review of the report. The provision 
would express a sense of Congress urging the Secretary to 
develop a system to quantify costs and savings attributable to 
the closure and realignment of military installations under the 
base closure process.
      The House bill contained no similar provision.
      The House recedes with an amendment that would include an 
assessment of the effect of previous base closure rounds on the 
military capabilities and the ability of the Armed Forces to 
fulfill the National Military Strategy. The amendment would 
also make certain technical corrections.
Sense of Senate regarding utilization of savings derived from base 
        closure process (sec. 2825)
      The Senate amendment contained a provision (sec. 2833) 
that would make it the sense of the Senate that the savings 
identified from base closure be made available to the 
Department of Defense solely for the purpose of modernization 
of weapons systems.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Prohibition against conveyance of property at Long Beach Naval Station 
        to China Ocean Shipping Company (sec. 2826)
      The House bill contained a provision (sec. 2822) that 
would prohibit the Secretary of Defense from conveying, by 
sale, lease, or other method, any portion of real property to 
be disposed under the Defense Base Closure and Realignment Act 
of 1990 (part A of title XXIX of Public Law 101-510) to a 
state-owned shipping company. The section would also preclude 
the Secretary, as a condition on each conveyance of real 
property, from subsequently conveying the property to a state-
owned shipping company. The section would provide for a 
reversionary interest of the United States in such property in 
the event of a conveyance to, or use by, a state-owned shipping 
company.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would specify 
that the Secretary of Navy may not convey property at the 
former Naval Station, Long Beach, California under the Defense 
Base Closure and Realignment Act of 1990 (part A of title XXIX 
of Public Law 101-510) to the China Ocean Shipping Company 
(COSCO) or any successor of the company. The section would also 
preclude the Secretary, as a condition on each conveyance of 
real property, from subsequently conveying that property to 
that company. The section would provide for a reversionary 
interest of the United States in such property in the event of 
a conveyance to, or use by, COSCO. The provision would require 
the Secretary of Defense and the Director of the Federal Bureau 
of Investigations to separately prepare a report on the 
potential national security implications of transferring the 
property to COSCO. It would also include the authority for the 
President to waive the restriction if it is determined that the 
transfer would not adversely impact national security or 
significantly increase the counter intelligence burden on the 
United States intelligence community. The waiver would be 
effective 30 days after the President notifies the Speaker of 
the House and the President of the Senate.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Land conveyance, Army Reserve Center, Greensboro, Alabama (sec. 2831)
      The Senate amendment contained a provision (sec. 2820) 
that would authorize the Secretary of the Army to convey, 
without consideration, to Hale County, Alabama approximately 
5.17 acres located at the Army Reserve Center, Greensboro, 
Alabama. The property was conveyed to the United States by 
warranty deed dated September 12, 1988, for the purpose of 
constructing a reserve center which is no longer required.
      The House bill amendment contained no similar provision.
      The House recedes.
Land Conveyance, James T. Coker Army Reserve Center, Durant, Oklahoma 
        (sec. 2832)
      The House bill contained a provision (sec. 2831) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property with improvements in 
Durant, Oklahoma to Big Five Community Services, Incorporated. 
The property is to be used for educational purposes. The cost 
of any surveys necessary for the conveyance shall be borne by 
Big Five Community Services, Incorporated.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Land conveyance, Gibson Army Reserve Center, Chicago, Illinois (sec. 
        2833)
      The House bill contained a provision (sec. 2838) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property with improvements in 
Chicago, Illinois, to the Lawndale Business and Local 
Development Corporation. The cost of any surveys necessary for 
the conveyance shall be borne by the Lawndale Business and 
Local Development.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would make the 
conveyance subject to the condition that the corporation use 
the property conveyed for economic development purposes.
Land conveyance, Fort A.P. Hill, Virginia (sec. 2834)
      The House bill contained a provision (sec. 2832) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of unimproved real property at Fort 
A.P. Hill, Virginia, to Caroline County, Virginia. The property 
is to be used for a waste transfer station. The costs of any 
surveys necessary for the conveyance shall be borne by the 
County.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
specify that the County shall permit the Army, at no cost, to 
dispose of not less than 1,800 tons of solid waste annually at 
the facility established on the conveyed property.
Land conveyances, Fort Dix, New Jersey (sec. 2835)
      The House bill contained a provision (sec. 2839) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property with improvements at 
Fort Dix, New Jersey, to the Borough of Wrightstown, New Jersey 
and a parcel with improvements to the Board of Education of New 
Hanover, New Jersey. The property is to be used for educational 
and economic purposes. The cost of any surveys necessary for 
the conveyance shall be borne by the Borough.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include a 
reversionary clause in the event the Secretary determines that 
the conveyed property is not being utilized in accordance with 
the conditions and purposes of the conveyance.
Land conveyances, Fort Bragg, North Carolina (sec. 2836)
      The House bill contained a provision (sec. 2837) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of unimproved real property at Fort 
Bragg, North Carolina, to the Town of Spring Lake, North 
Carolina. The property is to be used for improved access to a 
waste treatment facility and to permit economic development. 
The cost of any surveys necessary for the conveyance shall be 
borne by the Town.
      The Senate amendment contained a provision (sec. 2823) 
that would authorize the conveyance, without consideration, of 
157 acres of land at Fort Bragg, North Carolina to Harnett 
County, North Carolina for educational and economic development 
purposes. The provision would also authorize the conveyance, at 
fair market value, of a parcel of land in the amount of 137 
acres at Fort Bragg, North Carolina to Harnett County. The 
provisions would explicitly transfer any environmental 
liability from the United States government to the county.
      The conference agreement includes both provisions. The 
Senate recedes with an amendment that would require the real 
property conveyed to the Town of Spring Lake be subject to the 
reversionary clause contained in the Senate provision. The 
House recedes with an amendment that would strike the transfer 
of liability from the UnitedStates government to the county. 
The conferees understand that this transfer is not required.
Land conveyance, Hawthorne Army Ammunition Depot, Mineral County, 
        Nevada (sec. 2837)
      The Senate amendment contained a provision (sec. 2813) 
that would authorize the Secretary of the Army to convey, 
without reimbursement, to Mineral County, Nevada, approximately 
33.1 acres of real property and improvements that constitute 
the Schweer Drive Housing Area. The conveyance would be 
contingent upon the County's acceptance of the property subject 
to such easements or rights of way as the Secretary considers 
appropriate. The provision would also require the County to 
reimburse the United States in the event the property is sold 
within 10 years. The reimbursement would be equal to the lesser 
of the amount of the sale of the property sold, or the fair 
market value of the property sold, excluding the value of any 
improvements made by the County.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Expansion of land conveyance authority, Indiana Army Ammunition Plant, 
        Charlestown, Indiana (sec. 2838)
      The House bill contained a provision (sec. 2833) that 
would amend section 2858 of the Military Construction 
Authorization Act for Fiscal Year 1996 (division B of Public 
Law 104-106) to provide for the additional conveyance of 500 
acres of real property to the State of Indiana.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Modification of land conveyance, Lompoc, California (sec. 2839)
      The House bill contained a provision (sec. 2834) that 
would modify the purpose of the conveyance authorized by 
section 834(b)(1) of the Military Construction Authorization 
Act, 1985 (Public Law 98-407). The modification would permit 
the real property to be conveyed by the Secretary of the Army 
to the City of Lompoc, California, to be used for educational 
or recreational purposes.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Modification of land conveyance, Rocky Mountain Arsenal, Colorado (sec. 
        2840)
      The House bill contained a provision (sec. 2835) that 
would permit the Administrator of General Services to enter 
into a negotiated sale of 815 acres of real property at Rocky 
Mountain Arsenal, Colorado, to Commerce City, Colorado.
      The Senate amendment contained a provision (sec. 2819) 
that would authorize the conveyance of the 815 acres at fair 
market value, as determined jointly by the Administrator and 
Commerce City.
      The House recedes with a clarifying amendment.
Correction of land conveyance authority, Army Reserve Center, Anderson, 
        South Carolina (sec. 2841)
      The House bill contained a provision (sec. 2836) that 
would correct the name of the conveyee in the conveyance 
authorized by section 2824 of the Military Construction 
Authorization Act for Fiscal Year 1997 (division B of Public 
Law 104-201). The correction would permit the conveyance to be 
made by the Secretary of the Army to the Board of Education, 
Anderson County, South Carolina.
      The Senate amendment contained a similar provision (sec. 
2812).
      The House recedes with a technical amendment.

                       Part II--Navy Conveyances

Land conveyance, Topsham Annex, Naval Air Station, Brunswick, Maine 
        (sec. 2851)
      The Senate amendment contained a provision (sec. 2815) 
that would authorize the Secretary of the Navy to convey, 
without consideration, to the Maine School Administrative 
District No. 75, Topsham, Maine, a parcel of real property, 
consisting of approximately 40 acres located at the Topsham 
Annex, Navy Air Station, Brunswick, Maine. The provision would 
require the district to use the conveyed property for 
educational purposes. It would further provide for an interim 
lease of the property until the property is conveyed. As 
compensation for the lease, the district would provide security 
and maintenance.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Land conveyance, Naval Weapons Industrial Reserve Plant No. 464, Oyster 
        Bay, New York (sec. 2852)
      The Senate amendment contained a provision (sec. 2816) 
that would authorize the Secretary of the Navy to convey, 
without consideration, to the County of Nassau, New York, all 
right, title, and interest of the United States in and to a 
parcel of real property consisting of approximately 110 acres 
and improvements comprising the Naval Weapons, Industrial 
Reserve Plant No. 464, Oyster Bay, New York. The purpose of the 
conveyance would be for economic development and would include 
equipment, fixtures, and other personal property located on the 
parcel as the Secretary determines not to be required by the 
Navy. The provision would authorize the Navy to enter into an 
interim lease with the County. The County would provide 
security services, fire protection, and maintenance work, as 
specified by the Secretary. The provision would specify that, 
if the Secretary determines within a 5-year period after the 
conveyance that the property is not used in accordance with the 
condition of the conveyance, the property would revert to the 
United States.
      The House amendment contained no similar provision.
      The House recedes with a clarifying amendment.
Correction of lease authority, Naval Air Station, Meridian, Mississippi 
        (sec. 2853)
      The House bill contained a provision (sec. 2851) that 
would change the name of the conveyee in the conveyance 
authorized by section 2837 of the Military Construction 
Authorization Act for Fiscal Year 1997 (division B of Public 
Law 104-201). The correction would permit the conveyance to be 
made by the Secretary of the Navy to the County of Lauderdale, 
Mississippi.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                    Part III--Air Force Conveyances

Land transfer, Eglin Air Force Base, Florida (sec. 2861)
      The House bill contained a provision (sec. 2861) that 
would authorize the Secretary of Transportation to transfer, 
without reimbursement, to the administrative jurisdiction of 
the Secretary of the Air Force a parcel of real property with 
improvements at Cape San Blas, Gulf County, Florida, previously 
withdrawn for use as the location of a lighthouse. The 
Secretary of the Air Force would incorporate the property as 
part of Eglin Air Force Base, Florida.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Land conveyance, March Air Force Base, California (sec. 2862)
      The House bill contained a provision (sec. 2863) that 
would authorize the Secretary of the Air Force to convey a 
parcel of real property at March Air Force Base, California, to 
Air Force Village West, Incorporated, of Riverside, California. 
As consideration for the parcel to be conveyed, the Corporation 
shall pay to the United States an amount equal to the fair 
market value of the real property, as determined by the 
Secretary. The section would also make technical modifications 
to section 835 of the Military Construction Authorization Act, 
1985 (Public Law 98-407).
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Land conveyance, Hancock Field, Syracuse, New York (sec. 2864)
      The Senate amendment contained a provision (sec. 2821) 
that would authorize the conveyance, without consideration, of 
approximately 15 acres of excess real property located at 
Hancock Field, Syracuse, New York. The provision would include 
a reversionary clause in the event the property is not used for 
economic redevelopment.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Land conveyance, Havre Air Force Station, Montana, and Havre Training 
        Site, Montana (sec. 2865)
      The Senate amendment contained a provision (sec. 2822) 
that would authorize the Secretary of the Air Force to convey, 
without consideration, two parcels of real property in the 
amount of 94 acres comprising the former Havre Air Force 
Station and the former Havre Training Site, Montana. The 
purpose of the conveyance would be for housing and economic 
development.
      The House bill contained no similar provision.
      The House recedes.
Land conveyance, Charleston Family Housing Complex, Bangor, Maine (sec. 
        2866)
      The Senate amendment contained a provision (sec. 2817) 
that would authorize the Secretary of the Air Force to convey, 
without consideration, to the City of Bangor, Maine, a parcel 
of real property consisting of approximately 19 acres and 
improvements located in Bangor, Maine and known as the 
Charleston Family Housing Complex. The purpose of the 
conveyance would be for economic development. The provision 
would require the city to reimburse the United States in the 
event the property is sold within 10 years. The reimbursement 
would be equal to the lesser of the amount of the sale of the 
property sold, or, the fair market value of the property sold 
excluding the value of any improvements made by the city.
      The House bill contained no similar provision.
      The House recedes.
Study of land exchange options, Shaw Air Force Base, South Carolina 
        (sec. 2867)
      The House bill contained a provision (sec. 2862) that 
would amend section 2874 of the Military Construction 
Authorization Act for Fiscal Year 1996 (division B of Public 
Law 104-106) to require the Secretary of the Air Force to 
conduct a study to identify real property suitable for exchange 
to affect the land exchange at Shaw Air Force Base, South 
Carolina, authorized pursuant to that law.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                       Subtitle E--Other Matters

Repeal of requirement to operate Naval Academy Dairy Farm (sec. 2871)
      The House bill contained a provision (sec. 2881) that 
would repeal section 810 of the Military Construction 
Authorization Act of 1968 (Public Law 90-110), which prohibits 
the Department of the Navy from taking any action to close, 
dispose, or phase out the operation of the Naval Academy Dairy 
Farm.
      The Senate amendment contained a similar provision (sec. 
1066).
      The Senate recedes with a clarifying amendment.
Long-term lease of property, Naples, Italy (sec. 2872)
      The House bill contained a provision (sec. 2882) that 
wouldpermit the Secretary of the Navy to enter into a long-term 
lease, not to exceed twenty years, for structures and real property 
relating to a regional hospital complex in Naples, Italy, that the 
Secretary determines to be necessary for purposes of the Naples 
Improvements Initiative.
      The Senate amendment contained a similar provision (sec. 
2814).
      The Senate recedes.
Designation of military family housing at Lackland Air Force Base, 
        Texas, in honor of Frank Tejeda, a former Member of the House 
        of Representatives (sec. 2873)
      The House bill contained a provision (sec. 2883) that 
would authorize the Secretary of the Air Force to designate 
military family housing developments to be constructed at 
Lackland Air Force Base, Texas, in honor of the late Frank 
Tejeda, a Representative in Congress from the State of Texas.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Fiber-optics based telecommunications linkage of military installations 
        (sec. 2874)
      The House bill contained a provision (sec. 1502) that 
would require the Department of Defense to install a fiber-
optics based telecommunications network to link the military 
installations in a metropolitan area.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would provide 
sufficient time for the competition of such a contract and 
would allow the Department to tailor the network to its 
requirements. The conferees note that the Secretary could build 
on and expand ongoing Department of the Navy initiatives to 
meet these requirements. The conferees also encourage the 
Secretary to have a signed contract to implement this provision 
by December 1, 1998.

                   Legislative Provisions Not Adopted

Modification of authority for disposal of certain real property, Fort 
        Belvoir, Virginia
      The Senate amendment contained a provision (sec. 2811) 
that would repeal section 2821 of the Military Construction Act 
for Fiscal Years 1990 and 1991, as amended by section 2854 of 
the Military Construction Authorization Act for Fiscal Year 
1996. These provisions would have authorized the conveyance of 
the parcel of real property, including improvements thereon, at 
Fort Belvoir, Virginia, consisting of approximately 820 acres 
known as the Engineer Proving Ground.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees direct the Secretary of the Army to provide 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
a report on the status of the conveyance and redevelopment of 
the Engineer Proving Ground. The report shall be coordinated 
with the appropriate officials in Fairfax County and shall be 
submitted six months after enactment of this Act and annually 
thereafter until the redevelopment is completed.

                   Title XXIX--Sikes Act Improvement

Sikes Act Improvement (secs. 2901-2914)
      The House bill contained several provisions (secs. 2901-
2914) that would amend and reauthorize the Sikes Act, which was 
last amended in 1986, and had an authorization that expired in 
1993. In its current form, the Sikes Act authorizes the 
Secretary of Defense to enter into cooperative plans with the 
Secretary of Interior and the appropriate State fish and 
wildlife agencies. The House provisions would require the 
secretary of each military department to develop a more 
comprehensive integrated natural resources plan for each 
military installation. Each plan must be consistent with the 
use of military lands to ensure military preparedness, and 
cannot result in any net loss in the capability to support the 
military mission.
      The Senate amendment (secs. 381-392) and the House bill 
(secs. 2901-2914) contained similar provisions. However, the 
Senate amendment (sec. 383) would require the completion of 
integrated natural resources management plans three years after 
the date of the initial report to Congress, rather than the two 
years provided for in the House bill (sec. 2905). There is also 
a difference between the House bill (sec. 2911) and the Senate 
amendment (sec. 386) reference to the funds underlying 
cooperative agreements. The House bill provides for the use of 
``funds appropriated'' and the Senate amendment provides for 
the use of ``funds made available'' for the cost of goods and 
services covered under cooperative agreements.
      The House recedes with an amendment that would require 
the completion of integrated natural resources management plans 
three years following the submission of the initial report to 
Congress. The provision would specify that goods and services 
provided under a cooperative agreement would be paid for with 
``funds appropriated.'' The provision would also include minor 
legislative drafting modifications.
      The conferees note that the reauthorization of the Sikes 
Act would directly affect the nearly 25 million acres managed 
by the Department of Defense. The conferees agree that 
reauthorization of the Sikes Act is not intended to expand the 
management authority of the U.S. Fish and Wildlife Service or 
the State fish and wildlife agencies in relation to military 
lands. Moreover, it is expected that integrated natural 
resources management plans shall be prepared to facilitate 
installation commanders' conservation and rehabilitation 
efforts that support the use of military lands for readiness 
and training of the armed forces.
      The conferees note that the military departments will 
have completed approximately 60 percent of the required 
integrated natural resources management plans by October 1, 
1997. The conferees understand that most of these plans have 
been prepared consistent with the criteria established under 
this provision. In addition, the conferees note the significant 
investment made by the military departments in the completion 
of current integrated natural resources management plans. The 
conferees intend that the plans that meet the criteria 
established under this provision should not be subject to 
renegotiation and reaccomplishment.
      Finally, the conferees understand that approximately $5.0 
million is programmed for the preparation of integrated natural 
resources management plans on an annual basis. The conferees 
have been assured by the Department of Defense that the 
reauthorization of the Sikes Act will not result in increased 
funds for the plans. Based on the Department's assurances as to 
the programmed funding level, the conferees expect that each of 
the military departments will have sufficient funds in fiscal 
year 1998 and subsequent fiscal years to complete plans by the 
statutory deadline.

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

      Title XXXI--Department of Energy National Security Programs

Overview
      The budget request for fiscal year 1998 contained an 
authorization of $13,597.6 million for the Defense Nuclear 
Activities. The House bill would authorize $10,951.9 million. 
The Senate amendment would authorize $11,204.4 million. The 
conferees recommended an authorization of $11,502.8 million. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


                     Legislative Provisions Adopted

         Subtitle A--National Security Programs Authorizations

Weapons activities (sec. 3101)

      The House bill contained a provision (sec. 3101) that 
would authorize $4.0 billion for the Department of Energy (DOE) 
weapons activities.
      The Senate amendment contained a similar provision (sec. 
3101) that would authorize $4.0 billion for DOE weapons 
activities.
      The Senate recedes with an amendment that would authorize 
$4.1 billion for this account for the following activities: 
$1.9 billion for stockpile stewardship; $2.0 billion for 
stockpile management; and $250.0 million for program direction. 
The authorization includes a general reduction of $22.6 
million. The conferees recommend a reduction of $53.5 million 
to the budget request for program direction. The conferees note 
that recent independent assessments from the Institute for 
Defense Analysis and the General Accounting Office have 
identified a number of recommendations regarding how best to 
streamline the management structure within the Office of 
Defense Programs. The conferees believe that implementing such 
recommendations would reduce management costs and increase the 
effectiveness of the Department's weapons programs.
      The budget request included $15.7 million for the 
incremental component of the construction upgrades at the 
Chemistry and Metallurgy Research Facility at Los Alamos 
National Laboratory. Because of cost overruns and pending the 
outcome of the Department's ongoing review into this project, 
the conferees recommend $5.0 million for this activity. The 
conferees adopt this position, without prejudice.
      The conferees recommend $217.0 million, the amount 
requested, for the inertial confinement fusion operating 
program. Within the total amount authorized for this activity, 
the conferees recommend that $26.1 million be made available 
for the University of Rochester's Laboratory for Laser 
Energetics, an increase of $2.5 million.
      The conferees recommend an additional $10.0 million for a 
surety program to improve waste minimization efforts related to 
the Department's stockpile management program and an additional 
$8.0 million to continue tritium facility upgrades initiated in 
fiscal year 1997 at the Savannah River Site.
      The conferees recommend $65.3 million for technology 
transfer and education. Of this amount, the conferees recommend 
that $10.0 million be made available for the American Textiles 
Partnership program.

Environmental restoration and waste management (sec. 3102)

      The House bill contained a provision (sec. 3102) that 
would authorize $5.3 billion for Department of Energy (DOE) 
environmental restoration and waste management activities.
      The Senate amendment contained a similar provision (sec. 
3102) that would authorize $5.1 billion for DOE environmental 
restoration and waste management activities. The Senate 
amendment authorized $274.7 million for Defense Environmental 
Management Privatization projects in a separate provision.
      The Senate recedes with an amendment that would authorize 
$5.5 billion for Environmental Management activities, 
including: $1.0 billion for environmental restoration; $1.6 
billion for waste management; $220.0 million for technology 
development; $1.3 billion for nuclear material and facility 
stabilization; $20.0 million for policy and management; $55.0 
million for the Environmental Management science program; 
$875.0 million for closure projects; $345.8 million for program 
direction; and $224.7 million for defense Environmental 
Management privatization. The authorization includes a general 
reduction of $50.0 million.
      The conferees recommend an additional $10.0 million for 
environmental restoration. Of this increase, the conferees 
recommend an additional $5.0 million to accelerate closure of 
the Hanford 100 Area in Richland, Washington.
      The conferees recommend an additional $35.3 million for 
waste management. Of the funds available for waste management, 
the conferees recommend an additional $12.0 million for the 
Savannah River site to increase production at the Defense Waste 
Processing Facility (DWPF) and $8.2 million to support high-
level waste research and development work at the Idaho National 
Engineering and Environmental Laboratory. The conferees direct 
the Department to make available an additional $25.0 million to 
allow the consolidated incineration facility to operate at full 
capacity, as originally intended, to assure that the DWPF 
operates at its designed capacity, and that the site has 
sufficient funds to accelerate the disposal of transuranic 
waste.
      The conferees urge the Department to assess the cost 
savings that may be available if it is able to develop a 
successful spent fuel or high level waste storage cask system 
using high density concrete. Of the waste management funds 
authorized in section 3102 of this title, no more than $3.0 
million may be made available for this demonstration project.
      The conferees recommend an increase of $58.0 million to 
nuclear material and facility stabilization to be allocated as 
follows: $47.0 million for nuclear material stabilization 
operations at the F- and H-canyon facilities and $11.0 million 
for the National Spent Fuel Program.
      The conferees recommend $220.0 million for technology 
development, a $37.9 million reduction. This reduction reflects 
the Department's proposed reduction to the Technology 
Deployment Initiative and greater cost-sharing with technology 
user organizations within the Department. The conferees are 
supportive of the Office of Science and Technology's efforts to 
move technologies from the late stages of research and 
development into use. The conferees believe that Environmental 
Management line organizations should place a greater emphasis 
on innovative technical approaches when executing records of 
decision, meeting tri-party agreement milestones, or selecting 
clean up and waste management approaches. The Department has a 
poor record in deploying DOE-developed cleanup and waste 
management technologies. The conferees believe that senior 
management attention will be required if the Department is to 
benefit from thosetechnologies that have already been developed 
by the Department, but have not been applied at DOE facilities.
      The conferees recommend $55.0 million for the 
Environmental Management science program, an increase of $5.0 
million.
      The conferees recommend $20.0 million for the Office of 
Policy, a $3.1 million reduction.
      The conferees recommend $345.8 million for program 
direction, a $42.5 million reduction.
      The conferees recommend $875.0 million for the project 
closure account, an increase of $860.0 million. The increase to 
this account has been derived from the following sources: a 
transfer of $743.6 million from environmental restoration, a 
transfer of $45.2 million from the operations and maintenance 
account within the stockpile management program, and an 
additional $71.2 million. The conferees recommend allocating 
closure project account funds as follows: $648.4 million for 
the Rocky Flats Environmental Technology Site and $226.6 
million for the Fernald Environmental Management Project. The 
conferees strongly support the efforts of the adjacent 
communities to close these two sites within the next ten years.
      The transfer of $45.2 million from stockpile management 
represents the costs associated with the provision of security 
at the Rocky Flats Site and the Fernald Site. The conferees are 
aware that this transfer of funds will also require the Office 
of Environmental Management to accept custodial responsibility 
of weapons grade special nuclear material, which constitutes a 
change in current practice.
Other defense activities (sec. 3103)
      The budget request included $1.606 billion for Other 
Defense Activities of the Department of Energy (DOE) for fiscal 
year 1998.
      The House bill contained a provision (sec. 3103) that 
would authorize $1.5 billion for Other Defense Activities, a 
reduction of $93.4 million to the budget request.
      The Senate amendment contained a provision (sec. 3103) 
that would authorize $1.6 billion for Other Defense Activities, 
an increase of $28.0 million to the budget request.
      The conferees agree to a provision that would authorize 
$1.636 billion for Other Defense Activities.
Verification and control technology
      The conferees agree to authorize $478.2 million for 
verification and control technology.
      The conferees are concerned by recent reports that a 
substantial portion of the aid intended for Russian scientists 
under the Initiatives for Proliferation Prevention (IPP) 
program is being siphoned off by duties, regional taxes, 
overhead charges and other assessments by Russian entities. The 
conferees direct the Secretary of Energy to report to the 
Congress by March 31, 1998 on the impact of these charges on 
the program and to provide detailed recommendations on how 
these problems can be corrected.
      To close gaps identified in DOE's nuclear smuggling 
program, the conferees agree to provide $16.0 million for 
nuclear smuggling activities, a $3.0 million increase, from 
funds available in verification and control technology, to 
enhance further and accelerate the Department's nuclear 
forensic analytical capability. The conferees have been 
supportive of efforts by the Department of Defense (DOD) and 
DOE to respond to any domestic terrorist use of weapons of mass 
destruction. From the funds authorized for verification and 
control technology, $2.0 million is available for training and 
related activities to prepare federal, state, and local first 
responders to work effectively as part of the domestic 
emergency response program. The conferees understand that 
nuclear training curriculum for local first responders has been 
prepared by the DOE defense programs, and that this program is 
coordinated with the DOD, the agency responsible for preparing 
the chemical and biological training and exercise programs. In 
order to maximize the number of participants in the exercises, 
and to take advantage of cost savings, the conferees recommend 
that DOE continue to coordinate the activities of its exercises 
with the executive agent and program manager for the DOD 
domestic emergency preparedness program in order to integrate 
mixed scenarios of chemical, biological and nuclear incidents 
in the exercises.
      The Secretary of Energy was directed in the statement of 
managers accompanying the conference report for the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 102-
201) to provide an annual evaluation to the Congress of the 
expected powers and expected limits that define the extent to 
which science and technology can aid the nonproliferation 
effort. The conferees direct the Secretary to submit the first 
annual report on February 1, 1998. The conferees continue to 
believe that advances in science and technology will improve 
the ability to detect the presence, transportation, and use of 
weapons of mass destruction. The ability of such advanced 
technologies to be developed and used may, however, be impeded 
or otherwise affected by regional powers and interests. The 
evaluation to be conducted should include an analysis of 
regional and local situations, requirements, and power 
structures that can either aid or deter deployment of new 
technology for nonproliferation efforts.
International nuclear safety
      The conferees agree to provide $47.0 million for nuclear 
energy, including $35.0 million for international nuclear 
safety activities.
      The conferees were recently notified that the DOE fiscal 
year 1999 funding for these activities will not be included in 
DOE national security programs. The conferees appreciate the 
administration's intent to comply with congressional guidance 
and to seek funding for these activities from sources other 
than the defense accounts.
Naval reactors
      The conferees recommend an increase of $44.5 million to 
the budget request for naval reactors to expedite 
decommissioning and decontamination activities at surplus 
training facilities.
      The conferees consider the naval reactors program to be a 
critical defense activity. The conferees are concerned that the 
DOEhas demonstrated a pattern of consistently underestimating 
funding requirements for this program in budget requests. The conferees 
strongly encourage the Department to request adequate funding for this 
program in future fiscal year budget requests to allow this program to 
accomplish the stated objectives in an efficient manner.
Declassification productivity initiative
      The conferees continue to support the Declassification 
Productivity Initiative. The conferees are concerned that the 
Department of Energy lacks both the appropriate technical 
personnel and integrating components required to carry out 
successfully this program. Recognizing the complexities 
surrounding the development of a computer-aided system to 
improve the efficiency and security of the declassification 
process, the conferees are concerned that the limited funds 
provided to this program are being allocated among numerous 
laboratories, universities, and industry without clear 
technical direction or coordination by the Department. The 
conferees direct the Director of the Office of Declassification 
to begin to develop a management and integration strategy to 
coordinate and streamline the various initiatives carried out 
within the Declassification Productivity Initiative. In 
addition, the conferees strongly discourage any shifting of 
funds from the Declassification Productivity Initiative to 
other declassification activities.
Environment, safety and health
      The conferees recommend $94.0 million for environment, 
safety and health (ES&H) activities, an increase of $40.0 
million to the budget request. Of the amount authorized, the 
conferees recommend $20.0 million for ES&H program direction. 
The conferees believe that costs associated with implementing 
and conducting oversight of the ES&H program should be 
reflected in the same programmatic activity.
Independent cost assessment
      The conferees recommend $15.0 million to be used by the 
Department of Energy to provide for external reviews of the 
Department's individual construction and privatization 
projects. The conferees direct the Secretary of Energy to 
provide the congressional defense committees with all reports 
generated in the process of conducting this assessment, and to 
consult with the committees regarding all aspects of this 
review, including contractor selection.

                Subtitle B--Recurring General Provisions

Limits on general plant projects (sec. 3122)
      The House bill contained a provision (sec. 3122) that 
would authorize the Secretary of Energy to carry out any 
construction project authorized under general plant projects if 
the total estimated cost would not exceed $2.0 million. The 
provision would require the Secretary to submit a report to 
Congress if the cost of the project is revised to exceed $2.0 
million. The report would fully explain the reasons for the 
cost variation.
      The Senate amendment contained a similar provision (sec. 
3122) that would authorize a construction project as a general 
plant project if the current estimated cost for that project 
would exceed $5.0 million. If the Secretary of Energy 
determines that the estimated cost of any project will exceed 
$5.0 million, the congressional defense committees must be 
notified of the reasons for the cost variation.
      The House recedes.
      The conferees note that the report required by section 
3122 of the National Defense Authorization Act for Fiscal Year 
1997 (Public Law 104-201) to support increasing the threshold 
for general plant projects was submitted late. The conferees 
urge the Department to submit reports on or before the required 
due dates in the future.
Fund transfer authority (sec. 3124)
      The House bill contained a provision (sec. 3124) that 
would permit funds authorized by the bill to be transferred to 
other agencies of the government for performance of work for 
which the funds were authorized and appropriated. The provision 
would permit the merger of such funds with the authorizations 
of the agency to which they are transferred. This provision 
would also limit, to no more than five percent, the amount of 
such funds that may be transferred between authorization 
accounts in the Department of Energy that were authorized 
pursuant to this act.
      The Senate amendment contained a similar provision (sec. 
3124).
      The Senate recedes with a clarifying amendment.
Authority for conceptual and construction design (sec. 3125)
      The House bill contained a provision (sec. 3125) that 
would limit the Secretary of Energy's authority to request 
construction funding until the Secretary certifies that a 
conceptual design has been completed, except in the case of 
emergencies. This limitation would apply to construction 
projects with a total estimated cost in excess of $2.0 million. 
If the estimated cost of the design exceeds $3.0 million, the 
provision would require the Secretary to request funds for the 
design before requesting funds for the construction project. 
The provision would also require the Secretary to submit to 
Congress a report on each conceptual design completed under 
this paragraph.
      The Senate amendment contained a similar provision (sec. 
3125) that would apply to construction projects with a total 
estimated cost in excess of $5.0 million.
      The Senate recedes with an amendment that would limit the 
Secretary's authority to request construction funding for 
projects with an estimated cost in excess of $5.0 million until 
the Secretary has certified a conceptual design has been 
completed, except in emergencies.
Availability of funds (sec. 3128)
      The Senate amendment contained a provision (sec. 3128) 
that would authorize amounts appropriated for operating 
expenses or for plant and capital equipment to remain available 
until expended.
      The House bill contained no similar provision.
      The House recedes with an amendment that would direct 
that funds authorized to be appropriated for program direction 
activities in fiscal year 1998 would be available to be 
expended until the end of fiscal year 2000.
Transfers of defense environmental management funds (sec. 3129)
      The House bill contained a provision (sec. 3128) that 
would provide the manager of each field office of the 
Department of Energy (DOE) with the limited authority to 
transfer fiscal year 1998 defense environmental management 
funds from one program or project under the jurisdiction of the 
office to another such program or project, once in the fiscal 
year.
      The Senate amendment contained a similar provision (sec. 
3137) that would extend and make permanent the limited 
authority to transfer defense environmental management funds 
originally authorized in section 3139 of the National Defense 
Authorization Act for Fiscal Year 1997.
      The Senate recedes with a clarifying amendment.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Memorandum of understanding for use of national laboratories for 
        Ballistic Missile Defenses programs (sec. 3131)
      The House bill contained a provision (sec. 3131) that 
would establish a program within the Department of Energy 
weapons laboratories for the purpose of assisting the 
Department of Defense in the testing and development of a 
ballistic missile defense program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would direct 
the Secretary of Energy and the Secretary of Defense to enter 
into a memorandum of understanding as to how the Department of 
Energy national laboratories could be utilized more fully to 
support the ballistic missile defense program.
Defense environmental management privatization projects (sec. 3132)
      The Senate amendment contained a provision (sec. 3131) 
that would establish criteria for the initiation of Department 
of Energy Defense Environmental Management Privatization 
contracts.
      The provision would prohibit the Department from 
incurring any contractual obligations for a privatization 
contract until 30 days after the date on which the Department 
submits to the congressional defense committees a report on 
that privatization project that describes the Department's 
anticipated contractual commitments for such project, the cost 
of the proposed project versus the baseline cost, any 
assumptions underlying cost savings estimates, and a discussion 
of the Department's plans to maintain financial and 
programmatic accountability under such contracts.
      The provision would direct the Department to report on 
the Secretary's ability to enter into privatization contracts 
in the absence of sufficient appropriations to meet obligations 
under such contracts.
      The House bill contained a provision (sec. 3145) that 
would place similar restrictions on the tank waste remediation 
system project.
      The House recedes with an amendment that would provide 
the Secretary discretionary authority to use a privatization 
contract to carry out a project for which funds are authorized 
pursuant to section 3102 of this Act. The provision would also 
require the Department of Energy to provide a detailed 
justification and analysis of the comparative costs to the 
United States of constructing two nuclear waste vitrification 
plants under the tank waste remediation system project, should 
the Secretary of Energy choose to do so.
      The conferees direct the Secretary of Energy to examine 
and report to the congressional defense committees on the 
Department's authority to create an escrow account to offset 
any reasonably foreseeable costs to the government that may 
arise if any privatization contracts are canceled or terminated 
for the convenience of the government. The report should also 
recommend any legislation needed to eliminate any potential 
conflicts arising from the anti-deficiency provisions found in 
section 3191 of title 31, United States Code.
International cooperative stockpile stewardship programs (sec. 3133)
      The Senate amendment contained a provision (sec. 3132) 
that would prohibit the Department of Energy (DOE) from 
pursuing cooperative stockpile stewardship and management 
activities with certain nations.
      The House bill contained no similar provision.
      The House recedes.
      The conferees remain concerned that initiation of an 
ongoing international cooperative stockpile stewardship and 
management program could have unintended detrimental effects on 
U.S. national security interests. This provision would extend 
for one year the prohibition established by section 3138 of the 
National Defense Authorization Act for Fiscal Year 1997. The 
intent of this provision is to prohibit establishment of a 
permanent program of international cooperative stockpile 
stewardship, with an exception for activities that might be 
undertaken with the United Kingdom and France. The provision 
would not apply to activities carried out by DOE under 
cooperative threat reduction programs with nations of the 
former Soviet Union, or to the Department of Energy materials 
protection, control, and accounting or the initiatives for 
proliferation prevention programs. The prohibition would apply 
to all other DOE activities, including but not limited to 
laboratory directed research and development funds.
      The conferees do not intend this prohibition to prevent 
the President's ability to respond to developments which might 
threaten the national security of the United States. The 
conferees believe that the President has sufficient flexibility 
to address such specificincidents should they arise and the 
provision would not prohibit such action.
Modernization of enduring nuclear weapons complex (sec. 3134)
      The House bill contained a provision (sec. 3101) that 
would provide an increase of $85.0 million for the Department 
of Energy's (DOE) stockpile management program to be used for 
weapons production plants infrastructure upgrades and the 
Stockpile Life Extension, Enhanced Surveillance, and Advanced 
Development Programs carried out at DOE production plants.
      The Senate amendment contained a provision (sec. 3133) 
that would provide an additional $15.0 million to support 
modernization efforts being carried out at the Department of 
Energy's four nuclear weapons production plants (Pantex, Kansas 
City, Y-12, and Savannah River). The provision would require 
the Department to submit, not later than 30 days after 
enactment of this provision, a report describing the 
Department's plans to allocate the funds authorized by this 
section and the relevance of each allocation to implementing 
the decisions in the Final Programmatic Environmental Impact 
Statement for Stockpile Stewardship and Management. The funds 
authorized for this activity could not be obligated until 30 
days after the congressional defense committees receive the 
Department's proposed allocation report as required by this 
provision.
      The House recedes with an amendment that would increase 
funding for the stockpile management account to provide an 
additional $85.0 million for these activities.
      The conferees direct that the funds be allocated as 
follows: $25.0 million for the Pantex Plant for basic 
infrastructure needs including roof repair, electric power 
service upgrades, steam and condensate piping upgrades, fire 
enunciation systems, and Enhanced Surveillance Program 
activities; $25.0 million for the Kansas City Plant for basic 
infrastructure needs including roof repair, installation of 
advanced manufacturing equipment, and Advanced Manufacturing 
Program activities; and $35.0 million for the Y-12 plant for 
basic infrastructure needs, W-87 work load requirements, 
Advanced Manufacturing Program activities, and Stockpile Life 
Extension Program activities. Of the amounts made available by 
this provision, not more than five percent shall be allocated 
collectively to management overhead, program direction, and 
technical budgetary, accounting, and other analytical support 
to the DOE. The remainder shall be expended by the four 
production plants exclusively for the programs described.
      The conferees concur with the Department's goal to 
implement advanced manufacturing technology at DOE plants and 
laboratories to improve production efficiencies and maintain 
core competencies within the DOE nuclear weapons production 
complex. The conferees understand that such modernization 
upgrades will require coordination among the four production 
plants and the three design laboratories.
      The conferees remain concerned with the Department's 
plans to maintain the capability and capacity to refurbish and, 
when necessary, remanufacture nuclear weapons components in the 
Nation's nuclear weapons stockpile. The committee is concerned 
that the Department may be overly relying on new, ``science-
based'' stockpile stewardship and management approaches at the 
risk of losing manufacturing capabilities and expertise.
      The conferees are deeply troubled that the Department has 
failed to meet fully the intent of section 3137 of the National 
Defense Authorization Act for Fiscal Year 1996 and section 3132 
of the National Defense Authorization Act for Fiscal Year 1997 
calling for modernization of the four nuclear weapons 
production plants.
      The conferees believe that the Department did not fully 
meet the requirements or intent of these sections and related 
guidance provided in conference reports accompanying these Acts 
and the 1996 and 1997 Energy and Water Development 
Appropriations Acts. The conferees note that the General 
Accounting Office has identified certain Nuclear Weapons 
Stockpile Memorandum requirements that may not be met by the 
Department due to insufficient resources being allocated to the 
four traditional production plants. The conferees believe that 
the manufacturing facilities must be modernized as directed in 
the National Defense Authorization Act for Fiscal Year 1996 and 
the National Defense Authorization Act for Fiscal Year 1997, or 
these problems will continue.
Tritium production (sec. 3135)
      The Senate amendment contained a provision (sec. 3134) 
that would make available $262.0 million for the Department of 
Energy (DOE) tritium production program. The provision would 
require DOE to select a tritium production technology not later 
than June 30, 1998. The provision would also prohibit the 
Department from obligating funds appropriated or otherwise made 
available pursuant to this Act for exploration of any tritium 
production technology option, other than those being examined 
under the Department's ``dual track'' approach, until July 30, 
1998, or 30 days after such time that the Department selects a 
preferred technology option, whichever comes later. The 
provision would also require the Secretary of Energy to submit 
a report describing for each technology option any regulatory 
barriers, licensing difficulties, potential for production rate 
variability, scientific benefits, revenue generation and other 
ancillary benefits.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Department of Energy to select a tritium production 
technology not later than December 31, 1998.
      The conferees continue to believe that the Department can 
move faster to select a preferred technology option and acquire 
a permanent new tritium production source capable of meeting 
the requirements of the Nuclear Weapons Stockpile Memorandum, 
which identifies a new tritium production date in the year 2005 
in the case a reactor option is selected and 2007 if an 
accelerator option is selected. While the conferees recognize 
that future tritium requirements could change if the United 
States enters into treaties that reduce the numbers of 
strategic and tactical nuclear weapons, the production capacity 
that the United States will need to maintain at START I and 
START II levels will remain essentially constant.
Processing, treatment, and disposition of spent nuclear fuel rods and 
        other legacy nuclear materials at the Savannah River Site (sec. 
        3136)
      The Senate amendment contained a provision (sec. 3135) 
that would make available an additional $47.0 million above the 
budget request for the F-canyon and H-canyon facilities to 
accelerate the stabilization of legacy materials at the 
Savannah River Site. The provision would further require that 
the Secretary of Energy maintain a high state of readiness of 
the F-canyon and H-canyon facilities.
      The House bill contained no similar provision.
      The House recedes.
      The conferees note that the House bill recommended $41.0 
million for similar activities.
Limitations on use of funds for laboratory directed research and 
        development purposes (sec. 3137)
      The Senate amendment contained a provision (sec. 3136) 
that would modify section 3136 of the National Defense 
Authorization Act for Fiscal Year 1997 by requiring the annual 
report on uses of Laboratory Directed Research and Development 
(LDRD) funds be provided to the congressional defense 
committees not later than February 1 of each year. The 
provision would also prohibit the Department of Energy (DOE) 
from obligating more than 30 percent of the funds appropriated 
or otherwise made available to the DOE in fiscal year 1998 for 
LDRD programs until the Department submits the annual report 
for fiscal year 1997.
      The provision would limit the use of funds appropriated 
or otherwise made available to the DOE under section 3101 of 
this Act to LDRD and technology transfer activities that 
support the weapons activities of the Department. The provision 
would similarly limit use of funds appropriated or otherwise 
made available to the DOE under section 3102 of this Act to 
those activities that support the environmental restoration, 
waste management, or materials stabilization activities of the 
Department.
      The provision would require the Department to include in 
the fiscal year 1998 annual report an assessment of the funding 
required to carry out an effective LDRD program, including any 
recommendations for the percentage of funds that should be 
provided to the National Laboratories for LDRD activities by 
the Federal Government.
      The House bill contained no similar provision.
      The House recedes.
      The conferees recognize that programs such as LDRD are 
essential to maintaining the core competencies of the National 
Laboratories. The conferees will assess the Department's 
recommendations regarding the appropriate percentage of funds 
to be provided to this program in conjunction with any existing 
or future restrictions that might be considered for this 
program.
Pilot program relating to use of proceeds of disposal or utilization of 
        certain Department of Energy assets (sec. 3138)
      The Senate amendment contained a provision (sec. 3140) 
that wouldpermit the Secretary of Energy to establish a pilot 
program to promote the sale of certain real and personal property 
surplus to the needs of the Federal government and allow the Department 
of Energy (DOE) to retain in the DOE defense Environmental Restoration 
and Waste Management accounts 50 percent of the net proceeds from such 
sales. The retained funds would be available for use, subject to 
appropriation acts, in the Environmental Restoration and Waste 
Management programs. The provision would authorize the Department to 
initiate six asset disposition pilots and would permit the Department 
to deduct costs associated with preparing the asset for sale prior to 
calculating the net proceeds from the sale.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make clear 
that all net proceeds from sales under the pilot program would 
not be retained by the Department of Energy, but instead would 
be returned to the Treasury as miscellaneous receipts.
Modification and extension of authority relating to appointment of 
        certain scientific, engineering, and technical personnel (sec. 
        3139)
      The House bill contained a provision (sec. 3144) that 
would extend through fiscal year 1999 the authority of the 
Secretary of Energy to appoint certain scientific, engineering, 
and technical personnel to positions within the Department 
without regard to the provisions governing the appointments in 
the competitive service, and General Schedule classification 
schedules and pay rates contained in title 5, United States 
Code.
      The Senate amendment contained a similar provision (sec. 
3152) that would also repeal the requirement for the 
Administrator of the Environmental Protection Agency to submit 
a report to Congress on the effects of this hiring authority on 
the cleanup carried out at sites listed on the National 
Priorities List (also known as ``Superfund'' sites).
      The House recedes.
Limitation on use of funds for subcritical nuclear weapons tests (sec. 
        3140)
      The House bill contained a provision (sec. 3146) that 
would require the submission of a detailed report on the manner 
in which funds available to the Secretary of Energy for fiscal 
years 1996 and 1997 to conduct subcritical experiments were 
used. The provision would prohibit the Secretary from using any 
funds authorized in fiscal year 1998 to conduct subcritical 
experiments until 30 days after receipt of such report.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would allow the 
Secretary to conduct subcritical experiments prior to submittal 
of the report, if the Secretary determines that it is in the 
national security interests of the United States to do so. 
While the conferees strongly support these tests, they are 
concerned that over $100.0 million has apparently been spent 
with only two tests completed.
Limitation on use of certain funds until future use plans are submitted 
        (sec. 3141)
      The House bill contained a provision (sec. 3147) that 
would limit the ability of the Secretary of Energy to spend 
funds authorized for the Office of Policy and Management within 
the defense environmental management program until the draft 
future use plans and the final future use plans required under 
section 3153(f) of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201) are submitted.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would allow the 
Secretary to identify an alternative date for individual site 
plans if the Secretary finds that a site cannot meet the 
current due date of March 15, 1998 for submittal of its final 
future use plan.

                       Subtitle D--Other Matters

Plan for stewardship, management, and certification of warheads in the 
        nuclear weapons stockpile (sec. 3151)
      The House bill contained a provision (sec. 3141) that 
would require the Secretary of Energy to report annually on the 
Department of Energy (DOE) plan for the Stockpile Stewardship 
and Management Program. The report would describe the status 
and condition of the U.S. nuclear weapons stockpile, based on 
the requirements set forth in the Nuclear Weapons Stockpile 
Memorandum. This report would be submitted in both a classified 
and unclassified form and would be provided in lieu of a number 
of other reporting requirements which have been superseded and 
would be repealed by this section.
      The Senate amendment contained a similar provision (sec. 
3153).
      The Senate recedes with an amendment that would 
consolidate the repeal of obsolete reporting requirements in a 
separate section in Title XXXI of this Act.
Repeal of obsolete reporting requirements (sec. 3152)
      The House bill contained a provision (sec. 3142) that 
would repeal a number of obsolete reporting requirements.
      The Senate amendment contained a similar provision (sec. 
3155).
      The House recedes.
Study and funding relating to implementation of workforce restructuring 
        plans (sec. 3153)
      The House bill contained a provision (sec. 3143) that 
would modify and repeal selected provisions of section 3161 of 
the National Defense Authorization Act for Fiscal Year 1993 
(Public Law 102-484). The provision would eliminate the 
authority of the Department of Energy (DOE) to make assistance 
grants without approval by the Secretary of Commerce and the 
Secretary of Labor, as appropriate; reduce from 120 days, to 90 
days the applicable notice periods provided to employees to be 
separated; allow DOE to fund the programfrom available 
unobligated balances; and require a study by an outside auditor to 
assess the costs and benefits provided by this program since its 
inception.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would change 
the date of the required report from January 1, 1998 to March 
31, 1998; restore the direction in current law for a 120-day 
waiting period prior to implementation of a separation plan; 
modify the requirement for the Secretaries of Commerce and 
Labor to approve grants; and eliminate the use of uncosted 
balances to offset the fiscal year 1998 budget for worker 
transition activities.
      The conferees note that the direction found in section 
3161 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484) to give contract employees at DOE 
sites a 120-day waiting period prior to separations of large 
numbers of employees is a target only. The conferees further 
note current law mandates only a 60-day waiting period prior to 
large separations. The conferees encourage the Secretary of 
Energy and the Secretary of Defense to identify and seek to 
make available to the auditing firm conducting the study any 
relevant documents in the possession of other federal agencies. 
In encouraging access to all relevant documents, the conferees 
do not anticipate any document that could interfere with or 
jeopardize any ongoing investigation of the DOE Office of 
Inspector General or other federal agencies would be made 
available.
Plan for external oversight of national laboratories (sec. 3154)
      The House bill contained a provision (sec. 3148) that 
would require the Secretary of Energy to develop a plan for the 
external oversight of the national laboratories. The plan would 
provide for the establishment of an external oversight 
committee comprised of representatives of industry and academia 
for the purpose of making recommendations to the Secretary of 
Energy and to the congressional defense committees on the 
productivity of the laboratories and on the excellence, 
relevance, and appropriateness of the research conducted at the 
laboratories. The plan also would provide for the establishment 
of a competitive peer review process for funding basic research 
at the laboratories.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to prepare a report on existing and potential new 
external oversight practices at the national laboratories. The 
report would be due not later than July 1, 1999, and would 
include any recommendations from the Secretary and a plan to 
implement such recommendations.
University-based research collaboration program (sec. 3155)
      The House bill contained a provision (sec. 3149) that 
would require the Secretary of Energy to establish a 
university-based research center to coordinate the 
collaboration among national laboratories, universities and 
industry in support of scientific and engineering advancement 
in key Department of Energy defense program areas.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to establish a university-based collaborative 
program to coordinate national laboratory, university, and 
industry cooperation in support of scientific and engineering 
advancement in key Department of Energy defense program areas.
Stockpile stewardship program (sec. 3156)
      The House bill contained a provision (sec. 3150) that 
would provide that, as a matter of U.S. policy, the Department 
of Energy stockpile stewardship program shall be conducted in 
conformity with the Non-Proliferation Treaty and the 
Comprehensive Test Ban Treaty, if and when that treaty enters 
into force. The provision would also state that it is the 
policy of the United States to conduct a stockpile stewardship 
and management program to ensure the safety, security, 
effectiveness, and reliability of the U.S. nuclear weapons 
stockpile, consistent with U.S. national security requirements.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Reports on advanced supercomputer sales to certain foreign nations 
        (sec. 3157)
      The House bill contained a provision (sec. 3151) that 
would require companies that participate in the Department of 
Energy Accelerated Strategic Computing Initiative (ACSI) 
program to report to the Secretary of Energy and the Secretary 
of Defense, on a quarterly basis, the sale of each computer 
that exceeds an operating speed of 2,000 million theoretical 
operations per seconds (MTOPs) in which a Tier III country is 
the purchaser. The provision would require the Secretary of 
Energy to provide an annual report to Congress on the sales of 
computers in excess of 2,000 MTOPs by companies participating 
in the ACSI program the preceding year.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Transfers of real property at certain Department of Energy facilities 
        (sec. 3158)
      The House bill contained a provision (sec. 3152) that 
would direct the Secretary of Energy to issue guidelines for 
the sale or lease of real or personal property at Department of 
Energy (DOE) defense nuclear facilities. The provision would 
also provide the Secretary discretionary authority to grant 
indemnification for damage to real or personal property from 
certain activities by DOE on the land to be transferred.
      The Senate contained no similar provision.
      The Senate recedes with an amendment that would direct 
the Secretary to issue regulations governing the sale or 
transfer of land at DOE defense nuclear facilities that is 
excess to DOE needs. The regulations should address when it is 
appropriate for the Department to transfer or lease real 
property below fair market value or at fairmarket value. The 
DOE should look for guidance from the regulations issued by the 
Department of Defense governing transfers at closing military bases.
      Such leases and transfers would take place to enhance 
economic redevelopment and reuse activities in the local 
communities surrounding DOE defense facilities. As the DOE 
downsizes and closes facilities, many of the local communities 
in the vicinity of a DOE facility will need assistance to 
transition away from a local economy focused largely on DOE 
activities, to one based on private sector or other, non-DOE, 
federal activities.
      The amendment would also provide discretionary authority 
to the Secretary to indemnify transferees of real property at 
DOE defense nuclear facilities. This provision would establish 
procedures that are similar to authorities provided to the 
Secretary of Defense at closing military bases by section 330 
of the National Defense Authorization Act for Fiscal Year 1993. 
The conferees urge the Secretary to exercise the discretionary 
authority provided under this title only when it is deemed 
essential for the purposes of facilitating local reuse or 
redevelopment.
Requirement to delegate certain authorities to site manager of Hanford 
        Reservation (sec. 3159)
      The House bill contained a provision (sec. 3153) that 
would modify section 3173(b) of the National Defense 
Authorization Act for Fiscal Year 1997 by making delegation of 
authority to the manager of the Hanford Reservation in 
Richland, Washington, described in that section, mandatory 
rather than discretionary.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
mandatory transfer of authority to a period of one year.
Submittal of biennial waste management reports (sec. 3160)
      The Senate amendment contained a provision (sec. 3154) 
that would amend section 3153 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 104-360) by 
changing the future date for the next biennial Baseline 
Environmental Management Report to 1999, rather than 1997.
      The House bill contained no similar provision.
      The House recedes.
Board on security functions of Department of Energy (sec. 3161)
      The Senate amendment contained a provision (sec. 3156) 
that would establish a commission to review the sufficiency of 
Department of Energy (DOE) nuclear weapons and materials 
safeguards and security programs. This commission would review 
threat determinations and assumptions, relevant DOE orders, and 
other requirements governing safeguards and security of nuclear 
weapons, weapons components, nuclear materials, and sensitive 
nuclear weapons information at DOE facilities. The commission 
would report its findings and any recommendations to the 
Secretary of Energy and congressional defense committees not 
later than February 15, 1998.
      The House bill contained no similar provision.
      The House recedes with an amendment that would create a 
permanent Department of Energy Safeguards and Security 
Oversight Board to review and assess the DOE safeguards and 
security program. The Board would be comprised of the DOE 
Secretary, Assistant Secretary for Defense Programs, Assistant 
Secretary of Environment, Safety and Health, Director of Non-
proliferation and National Security, Director of Field 
Management, and five additional members, who are not employees 
of the Department of Energy or its contractors, to be appointed 
as follows: three by the Secretary of Defense, one by the 
Director of Central Intelligence, and one by the Director of 
the Federal Bureau of Investigation.
Submittal of annual report on status of security functions at nuclear 
        weapons facilities (sec. 3162)
      The Senate amendment contained a provision (sec. 3156) 
that would establish a commission to review the sufficiency of 
Department of Energy nuclear weapons and materials safeguards 
and security programs. The provision would require the 
commission to report annually to the Congress on its activities 
and findings.
      The House bill contained no similar provision.
      The conferees agree to include a new provision that would 
direct the Secretary of Energy to submit to the congressional 
defense committees the annual report to the President on the 
Status of Safeguards and Security of Domestic Nuclear Weapons 
Facilities. For fiscal years 1998 through 2000, the Secretary 
would include with the annual report any comments from 
individual members of the Department of Energy Safeguards and 
Security Oversight Board.
Modification of authority on commission on maintaining United States 
        nuclear weapons expertise (sec. 3163)
      The Senate amendment contained a provision (sec. 3157) 
that would extend by one year the due date for the report to be 
prepared by the Commission on Maintaining United States Nuclear 
Weapons Expertise. The provision would amend section 3162 of 
the National Defense Authorization Act for Fiscal Year 1997, 
which established the Commission. The provision would permit 
the Senate Majority Leader to designate a chairman of the 
Commission, after consultation with the Speaker of the House of 
Representatives, upon appointment of the fifth member of the 
Commission. The provision would allow the Commission to begin 
its work when a chairman is appointed. The provision would also 
extend the due date for the Commission's report from March 15, 
1998 to March 15, 1999.
      The House bill contained no similar provision.
      The House recedes with an amendment that would permit the 
Majority Leader of the Senate to appoint a chairman after 
January 1, 1998.
Land transfer, Bandelier National Monument (sec. 3164)
      The Senate amendment contained a provision (sec. 3158) 
that would direct the Secretary of Energy to transfer ownership 
of approximately 4.5 acres of land at the Department of 
Energy's Los Alamos National Laboratory site in Los Alamos 
County, New Mexico, to the Department of the Interior.
      The House bill contained no similar provision.
      The House recedes.
      The Department of the Interior constructed and manages 
sewage lagoons on this parcel of land. The transfer would allow 
the Department of the Interior to manage the lagoons in a more 
efficient manner.
Final settlement of Department of Energy community assistance 
        obligations with respect to Los Alamos National Laboratory, New 
        Mexico (sec. 3165)
      The Senate amendment contained a provision (sec. 3160) 
that would require the Department of Energy (DOE) to identify 
and transfer to the County of Los Alamos and the Secretary of 
the Interior, in trust for the Pueblo San Ildefonso, those 
lands that are part of the Los Alamos National Laboratory that 
are surplus to the needs of the Federal government. The 
provision establishes time deadlines for DOE to identify and 
report to Congress on the recommended parcels of land to be 
transferred, to conduct title searches on the parcels, to 
complete environmental impact assessments, and to transfer 
title or administrative control of the land. The provision 
would prohibit the Department from making any further 
assistance payments under sections 91 and 94 of the Atomic 
Energy Community Act of 1955 to county or city governments in 
the vicinity of the Los Alamos National Laboratory.
      The House bill contained no similar provision.
      The House recedes with clarifying amendments.
Sense of Congress regarding the Y-12 Plant in Oak Ridge, Tennessee 
        (sec. 3166)
      The Senate amendment contained a provision (sec. 3161) 
that would designate the Department of Energy Y-12 plant in Oak 
Ridge, Tennessee as the National Prototype Center.
      The House bill contained no similar provision.
      The House recedes with an amendment that would express a 
sense of Congress that the Y-12 plant should serve as a 
national prototype center.
Support for public education in the vicinity of Los Alamos National 
        Laboratory, New Mexico (sec. 3167)
      The Senate amendment contained a provision (sec. 3162) 
that would authorize the Department of Energy (DOE) to make a 
$5.0 million payment to a not-for-profit education foundation 
in the area around the Los Alamos National Laboratory to enrich 
educational activities of the local school system. DOE 
contributions to this foundation would be used to establish a 
fund, the corpus of which would remain in trust and the annual 
revenue used to support the local school system.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the DOE to report on how such payments would be terminated not 
later than September 2002 and how such payments will satisfy 
the Department's full obligation to provide education 
assistance to the local school system.
      The conferees expect that the Secretary of Energy will 
make no more than five total annual payments to this fund for a 
total contribution of $25.0 million. The conferees further 
expect that upon completion of the final payment, all such DOE 
assistance to the local school system will have been provided.
Improvements to Greenville Road, Livermore, California (sec. 3168)
      The Senate amendment contained a provision (sec. 3163) 
that would authorize the Department of Energy to pay $3.5 
million and $3.8 million in fiscal years 1998 and 1999, 
respectively, for improvements to Greenville Road, a road which 
abuts the Lawrence Livermore National Laboratory in Livermore, 
California.
      The House bill contained no similar provision.
      The House recedes with an amendment that would decrease 
the payment authorized to be made in fiscal year 1999 from $3.8 
million to $3.3 million, consistent with the Department's 
request.
      The conferees agree with the Department's proposal to 
collect these funds from indirect charges at the two 
laboratories located at the Livermore Site, Lawrence Livermore 
National Laboratory and Sandia National Laboratory-Livermore. 
These payments will constitute the final contribution from the 
Department of Energy to this project.
Report on alternative system for availability of funds (sec. 3169)
      The Senate amendment contained a provision (sec. 3128) 
that would authorize amounts appropriated for operating 
expenses or for plant and capital equipment to remain available 
until expended.
      The House bill contained no similar provision.
      The conferees agree to include a new provision that would 
direct the Secretary of Energy to submit to the congressional 
defense committees a report setting forth a proposal to bring 
the Department of Energy (DOE) more closely into line with 
other federal agencies. In preparing the report, the Secretary 
is instructed to look carefully at all of the DOE national 
security program funds and determine the length of time, by 
account, the funds should be available for obligation. The 
conferees expect the plan would be incorporated into the 
President's budget request for fiscal year 2000.
Report on remediation under the Formerly Utilized Sites Remedial Action 
        Program (sec. 3170)
      The Senate amendment contained a provision (sec. 3138) 
that would require the Secretary of Energy to prepare a report 
on the progress, costs, and liability issues associated with 
remediation activities carried out pursuant to the Formerly 
Utilized Sites Remedial Action Program. The report would be due 
not later than March 1, 1998.
      The House bill contained no similar provision.
      The House recedes.

                   legislative provisions not adopted

Report on proposed contract for Hanford tank waste vitrification 
        project
      The House bill contained a provision (sec. 3145) that 
would require prior notice to the congressional defense 
committees before entering into a contract for the Hanford tank 
waste vitrification project. The provision would also require 
the submission of a detailed report describing the activities 
to be carried out under the contract, the contractual and 
financial aspects of the contract, and an analysis of the cost 
to the United States of the proposed contract over the life of 
the project.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees agree to include the substance of this 
provision in another section in Title XXXI of this Act dealing 
with defense environmental management privatization projects.
Defense environmental management privatization
      The Senate amendment contained a provision (sec. 3104) 
that would authorize $274.0 million for the Defense 
Environmental Management Privatization program.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to authorize funding for these 
projects in section 3102 of this Act.
Tritium production in commercial facilities
      The Senate amendment contained a provision (sec. 3139) 
that would amend section 91 of the Atomic Energy Act (AEA) to 
authorize the Secretary of Energy to produce tritium for 
defense-related purposes in a commercial nuclear power reactor.
      The House bill contained no similar provision.
      The Senate recedes.
      Tritium gas, an isotope of hydrogen, is an essential 
ingredient in all modern nuclear weapons. Tritium has a 
radioactive half life of 12.3 years, and decays at a rate of 
five percent per year. As a result, the tritium in weapons in 
the U.S. nuclear weapons stockpile must be replaced 
periodically. Based on current projections of the size of the 
U.S. nuclear weapons stockpile, recycling tritium from weapons 
eliminated from the stockpile cannot fulfill this requirement.
      In December 1995, the Department of Energy announced its 
dual-track strategy for new tritium production. Utilizing the 
dual-track strategy since that time, the Department has been 
pursuing the two most promising tritium production 
technologies: (1) the purchase of an operating or partially 
complete commercial light-water reactor, or lease of a 
completed reactor, or the purchase of irradiation services from 
the owner or operator of such a reactor; and (2) the design, 
construction, and testing of critical components of a proton 
accelerator system for the production of tritium. The dual-
track strategy will enable the Department to select a primary 
option for tritium production by December 1998, consistent with 
current Department of Defense and nuclear weapons stockpile 
requirements, policy, and life-cycle cost budgetary 
considerations. The option not selected would serve as a backup 
capability in the event of technical or other difficulties.
      Over the last 19 months, DOE has gained increased 
confidence in the abilities of both options to produce an 
assured supply of tritium.
      The accelerator program has made significant advances 
through the use of superconducting and other design concepts to 
reduce the cost and technical risks that have been identified 
in conjunction with the accelerator. The commercial light water 
reactor program has also made significant progress in designing 
and producing tritium target rods. In the fall of 1997, DOE 
will place these tritium target rods in a commercial reactor in 
an effort to demonstrate the safety and reliability of tritium 
production in a light water reactor.
      Each track has additional uncertainties that must be 
addressed and answered to enable the Department to make its 
primary tritium production decision by December 1998.
      The conferees agreed to withdraw the proposed amendment 
to the AEA in order to allow a full and robust debate on the 
policy and legal implications of producing tritium for nuclear 
weapons in a commercial nuclear facility. While questions exist 
as to whether or not current law prohibits production of 
tritium in a commercial facility, and because concerns have 
been raised regarding the effect that a decision to produce 
tritium in this manner would have on U.S. non-proliferation 
strategy, the conferees believe the policy, legal, and 
regulatory issues that have been raised must be addressed in a 
comprehensive manner prior to passage of any amendments to 
facilitate such a choice.
      The commercial reactor track contains many sub-options 
for tritium production. As a practical matter, each of the 
different reactor sub-options has different legal and policy 
issues associated with it. The conferees believe that it would 
be helpful to the effort to secure necessary legislative 
changes if DOE could identify the preferred commercial reactor 
sub-option in advance of the final tritium production 
technology decision, preferably by March 1, 1998.
      The conferees believe that it is essential for DOE to 
identify and assess any policy issues associated with the 
various reactor sub-options in conjunction with other federal 
agencies including the Nuclear Regulatory Commission, the 
Department of Defense, and the Department of State arms control 
offices. The conferees direct the Secretary of Energy to 
utilize a senior level, interagency process to review and 
assess the issues associated with the commercial reactor 
option. This assessment should be completed before DOE 
identifies a preferred reactor sub-option.
      The conferees request the DOE propose to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives, by March 15, 1998, 
any legislation necessary to resolve the issues associated with 
either of the dual-track production technologies. This would 
allow the legislation to be inplace in advance of the DOE's 
final decision in December 1998. The conferees expect the Secretary of 
Energy to include full funding to continue to evaluate each tritium 
production technology in the dual-track strategy. The conferees will 
continue to work closely with DOE to gain the knowledge necessary to 
address and resolve issues associated with the dual-track tritium 
production technologies in order to allow the Department to select the 
tritium production option that best meets U.S. policy, national 
security and budgetary requirements.
Administration of certain Department of Energy activities
      The Senate amendment contained a provision (sec. 3151) 
that would amend sections 501 and 624 of the Department of 
Energy Organization Act and repeal section 17 of the Federal 
Energy Act. This provision would bring the Department of Energy 
(DOE) under the full scope of the Federal Advisory Committee 
Act and would bring DOE under the full scope of the 
Administrative Procedure Act when issuing regulations dealing 
with public property, loans, grants, or contracts.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that this provision was enacted into 
law by ``The Department of Energy Standardization Act of 1997'' 
(Public Law 105-28).
Participation of the national security activities in Hispanic Outreach 
        Initiative of the Department of Energy
      The Senate amendment contained a provision (sec. 3159) 
that would direct the Secretary of Energy to ensure the 
adequate participation of the Department of Energy (DOE) 
national security activities in the National Hispanic Outreach 
Initiative.
      The House bill contained no similar provision.
      The Senate recedes.
      The Secretary of Energy has established, for each DOE 
program element, participation goals to utilize Hispanic and 
other predominately or historically minority institutions, in 
carrying out DOE missions. The defense programs have not 
participated in a meaningful way in the Hispanic portions of 
the initiative.
      The initiative was announced by the DOE with much fanfare 
and yet, particularly in northern New Mexico, there has been 
little indication that DOE is working to fulfill its promises 
to utilize more fully Hispanic institutions in carrying out 
defense program missions. The conferees encourage the Secretary 
of Energy to seek uniform participation in this initiative.

         Ttitle XXXII--Defense Nuclear Facilities Safety Board

Overview
      The budget request for fiscal year 1998 contained an 
authorization of $17.5 million for the Defense Nuclear 
Facilities Safety Board. The House bill would authorize $17.5 
million. The Senate amendment would authorize $17.5 million. 
The conferees recommended an authorization of $17.5 million. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.

                     LEGISLATIVE PROVISIONS ADOPTED

Report on external regulation of defense nuclear facilities (sec. 3202)
      The House bill contained a provision (sec. 3202) that 
would require the Defense Nuclear Facilities Safety Board 
(DNFSB) to develop a plan, in consultation with the Secretary 
of Energy and the Nuclear Regulatory Commission (NRC), for the 
transfer of DNSFB's functions to the NRC.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Board to submit a report recommending which facilities 
should be retained under the jurisdiction of the Board and 
which facilities should be transferred to an external 
regulatory agency; require the Board to assess regulatory 
requirements and jurisdictional issues surrounding the defense 
environmental management privatization initiative and the 
proposed commercial light water reactor option for tritium 
production; remove the repeal of section 210 of the Department 
of Energy National Security and Military Applications of 
Nuclear Energy Authorization Act of 1981 (42 U.S.C. 7272); and 
require the Board to submit an interim report within 6 months 
of the date of enactment of this section and a final report 
within 12 months.

                Title XXXIII--National Defense Stockpile

                     LEGISLATIVE PROVISIONS ADOPTED

Definitions (sec. 3301)
      The Senate amendment contained a provision (sec. 3301) 
defining the National Defense Stockpile and National Defense 
Stockpile Transaction Fund as those which are established under 
the Strategic and Critical Materials Stock Piling Act.
      The House bill contained no similar provision.
      The House recedes.
Authorized uses of stockpile funds (sec. 3302)
      The House bill contained a provision (sec. 3301) that 
would authorize $73.0 million from the National Defense 
Stockpile Transaction Fund for the operation and maintenance of 
the National Defense Stockpile for fiscal year 1998. This 
provision would also permit the use of additional funds for 
extraordinary or emergency conditions after a notification to 
Congress.
      The Senate amendment contained a provision (sec. 3302) 
that would authorize the Stockpile Manager to obligate $60.0 
million from the National Defense Stockpile Transfer Fund 
during fiscal year 1998 for the authorized uses of funds under 
section 9(b)(2) of the Strategic and Critical Materials 
Stockpiling Act.
      The Senate recedes.
Disposal of beryllium copper master alloy in National Defense Stockpile 
        (sec. 3303)
      The House bill contained a provision (sec. 3302) that 
would authorize the Department of Defense to dispose of all 
beryllium copper master alloy from the National Defense 
Stockpile, contingent upon certification by the National 
Defense Stockpile Manager that any disposal of this material 
will not adversely affect the strategic and critical material 
needs of the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Disposal of titanium sponge in the National Defense Stockpile (sec. 
        3304)
      The House bill contained a provision (sec. 3303) that 
would authorize the Department of Defense to dispose of 34,800 
short tons of titanium sponge in the National Defense 
Stockpile.
      The Senate amendment contained a provision (sec. 3303) 
that would authorize the disposal of several materials from the 
National Defense Stockpile including titanium sponge.
      The Senate recedes.
Disposal of cobalt in National Defense Stockpile (sec. 3305)
      The Senate amendment contained a provision (sec. 3303) 
that would authorize the Department of Defense to dispose of 20 
materials from the National Defense Stockpile and would 
establish specific revenue targets that the Secretary of 
Defense must meet in the disposal of these materials.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the disposal of up to 14,058,014 pounds of cobalt, beginning in 
fiscal year 2003, and would require specific revenue targets 
for this disposal each year until fiscal year 2007 in order to 
offset direct spending provisions elsewhere in this Act.
Required procedures for disposal of strategic and critical materials 
        (sec. 3306)
      The House bill contained a provision (sec. 3306) that 
would amend section 6(b) of the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98e(b)) to clarify the 
procedures used by the Department of Defense for the sale of 
materials from the National Defense Stockpile.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Return of surplus platinum from the Department of the Treasury (sec. 
        3307)
      The House bill contained a provision (sec. 3304) that 
would establish conditions for the transfer of platinum 
contained in the National Defense Stockpile to the United 
States Treasury for minting of platinum coins.
      The Senate amendment contained a provision (sec. 3304) 
that would require any platinum contained within the National 
Defense Stockpile and loaned by the Department of Defense to 
the Department of Treasury to be made available to the 
Department of Defense upon request of the Secretary of Defense.
      The House recedes with an amendment that would preclude 
the expenditure of any funds available to the Department of 
Defense for the transfer of any platinum to the Treasury.

                   LEGISLATIVE PROVISIONS NOT ADOPTED

Restrictions on disposal of certain manganese ferro
      The House bill contained a provision (sec. 3305) that 
would repeal section 3304 of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106), which placed 
restrictions on the disposal of Manganese Ferro from the 
National Defense Stockpile.
      The Senate amendment contained no similar provision.
      The House recedes.

                 Title XXXIV--Naval Petroleum Reserves

                     legislative provisions adopted

Price requirement on sale of certain petroleum during fiscal year 1998 
        (sec. 3402)
      The House bill contained a provision (sec. 3402) that 
would require the Secretary of Energy to sell petroleum 
produced for the Naval Petroleum Reserves at not less than 90 
percent of established prices.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Repeal of requirement to assign Navy officers to Office of Naval 
        Petroleum and Oil Shale Reserves (sec. 3403)
      The House bill contained a provision (sec. 3403) that 
would repeal section 2 of Public Law 96-137, which requires the 
Secretary of the Navy to assign naval officers to the office of 
Naval Petroleum and Oil Shale Reserves.
      The Senate amendment contained a similar provision (sec. 
3403).
      The House recedes.
Transfer of jurisdiction, Naval Oil Shale Reserves numbered 1 and 3 
        (sec. 3404)
      The House bill contained a provision (sec. 3404) that 
would transfer the jurisdiction of the Naval Oil Shale Reserves 
Numbered one and three to the Department of the Interior and 
for lease pursuant tothe provisions of the Mineral Leasing Act, 
which would provide for the sharing of the revenues between the State 
of Colorado and the Federal Treasury.
      The Senate amendment contained a similar provision (sec. 
3402) that would authorize the lease of these reserves through 
the Department of Energy, which would allow 100 percent of the 
proceeds to be returned to the Federal Treasury.
      The Senate recedes with an amendment that would require 
that the Federal Treasury be reimbursed for all costs incurred 
by the Federal Government related to these reserves, including 
costs associated with capital improvements and environmental 
cleanup, prior to the sharing of any revenues with the State of 
Colorado.

                  Title XXXV--Panama Canal Commission

Panama Canal Commission (secs. 3501-3550)
      The House bill contained provisions (secs. 3501-3504) 
that would authorize the expenditure of funds by the Panama 
Canal Commission to cover its operating, maintenance, 
administrative, and capital improvement expenses, and to 
purchase vehicles built in the United States. The House bill 
also contained provisions (secs. 3511-3550) that would give the 
Commission certain authorities to facilitate the transition of 
the Canal to Panamanian control in December 1999.
      The Senate amendment contained identical provisions 
(secs. 3501, 3502, 3504-3512, 3523, 3524, 3526, and 3528-3550) 
and similar provisions (3503, 3521, 3522, 3525, and 3527).
      The conferees agree to include a series of provisions 
that would authorize the operations of the Panama Canal 
Commission. The provision in the House bill relating to the 
purchase of vehicles (sec. 3503) required that the vehicles 
purchased be built in the United States, while the provision in 
the Senate amendment (sec. 3503) had no such requirement. The 
provisions in the House bill and Senate amendment relating to 
the administrator of the Panama Canal Authority (sec. 3521 in 
both), post-transfer personnel authorities (sec. 3522 in both), 
recruitment and retention authorities (sec. 3525 in both) and 
labor-management relations (sec. 3527 in both) differed only 
technically.
      The House recedes with respect to the provision relating 
to the purchase of vehicles (sec. 3503). The conferees note, 
however, that the Commission has in the past purchased only 
vehicles built in the United States and encourage the 
continuation of that practice.
      The House recedes with respect to the provision relating 
to the administrator of the Panama Canal Authority (sec. 3521), 
and recedes with technical amendments with respect to the 
provisions relating to post-transfer personnel authorities 
(sec. 3522) and labor-management relations (sec. 3527). The 
Senate recedes with a technical amendment with respect to the 
provision relating to enhanced recruitment and retention 
authorities (sec. 3525).

                  Title XXXVI--Maritime Administration

      Title XXXVI of the House bill contained a number of 
provisions that would provide authorization for the Maritime 
Administration and related matters. The conferees resolved 
these matters through extensive consultations between the House 
and Senate conferees and the Senate Committee on Commerce, 
Science, and Transportation, which would normally exercise 
jurisdiction within the Senate on these matters.

                     LEGISLATIVE PROVISIONS ADOPTED

Authorization of appropriations for fiscal year 1998 (sec. 3601)
      The House bill contained a provision (sec. 3601) that 
would authorize $109.0 million for fiscal year 1998, as 
requested in the President's budget, for the United States 
Maritime Administration.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Repeal of obsolete annual report requirement concerning relative cost 
        of shipbuilding in the various coastal districts of the United 
        States (sec. 3602)
      The House bill contained a provision (sec. 3602) that 
would repeal the obsolete requirement for an annual report on 
the relative cost of shipbuilding in the various coastal 
districts contained in section 213 of the Merchant Marine Act, 
1936, as amended (46 U.S.C. App. 1123).
      The Senate amendment contained no similar provision.
      The Senate recedes.
Provisions relating to maritime security fleet program (sec. 3603)
      The House bill contained a provision (sec. 3603) that 
would amend section 656(b) of the Merchant Marine Act, 1936, as 
amended (46 U.S.C. App. 1187e(b)) to make clear that it does 
not restrict the operation or entry of U.S. flag self-propelled 
tankers in the domestic trades. This provision would also amend 
section 652(c) of the Merchant Marine Act, 1936, to eliminate 
the 3-year delay in eligibility to carry certain preference 
cargoes of vessels that are reflagged as U.S. flag vessels in 
order to participate in the Maritime Security Fleet Program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would amend 
section 652(c) of the Act to exempt a vessel from the 
restrictions concerning the building, rebuilding, or 
documentation of a vessel in a foreign country referred to in 
section 901(b) of the Act, 1936 (46 U.S.C. App. 1187a(c)) for 
any day the operator of the vessel is receiving payments under 
an operating agreement under the subtitle.
Authority to utilize replacement vessels and capacity (sec. 3604)
      The House bill contained a provision (sec. 3604) that 
would amend section 653(d) of the Merchant Marine Act, 1936, as 
amended (46 U.S.C. App. 1187b(d)(1)), to authorize a U.S. flag 
operator to utilize a foreign flag replacement vessel for a 
U.S. flag vessel that is activated by the Secretary of Defense 
under the terms of an Emergency Preparedness Agreement or other 
primary sealift readiness program approved by the Secretary of 
Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Authority to convey National Defense Reserve Fleet vessel (sec. 3605)
      The House bill contained a provision (sec. 3605) that 
would authorize the Secretary of Transportation to convey a 
surplus National Defense Reserve Fleet vessel to the Artship 
Foundation, a non-profit organization located in Oakland, 
California.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would add two 
required conditions to the terms of conveyance.
Determination of gross tonnage for purposes of tank vessel double hull 
        requirements (sec. 3606)
      The House bill contained a provision (sec. 3606) that 
would stop an industry practice of reducing the gross tonnage 
of single-hull tank vessels in order to delay the phase-out 
date of the vessels under the Oil Pollution Act of 1990.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would clarify 
the circumstances under which the House provision would apply.

                From the Committee on National Security, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Floyd Spence,
                                   Bob Stump,
                                   Duncan Hunter,
                                   John R. Kasich,
                                   Herbert H. Bateman,
                                   James V. Hansen,
                                   Curt Weldon,
                                   Joel Hefley,
                                   Jim Saxton,
                                   Steve Buyer,
                                   Tillie K. Fowler,
                                   John M. McHugh,
                                   James M. Talent,
                                   Terry Everett,
                                           (except for sections 355, 
                                               356, and 358-367),
                                   Roscoe G. Bartlett,
                                   Howard ``Buck'' McKeon,
                                   Ron Lewis,
                                   J.C. Watts, Jr.,
                                   Saxby Chambliss,
                                   Bob Riley,
                                   Ike Skelton,
                                   Norman Sisisky,
                                   John M. Spratt, Jr.,
                                           (except for the increase 
                                               over the President's 
                                               request for research and 
                                               development of a space-
                                               based laser and the 
                                               statement of managers on 
                                               this program),
                                   Solomon P. Ortiz,
                                   Owen Pickett,
                                   Gene Taylor,
                                   Neil Abercrombie,
                                   Martin T. Meehan,
                                   Jane Harman,
                                   Paul McHale,
                                   Patrick J. Kennedy,
                                   Rod Blagojevich,
                                   Vic Snyder,
                As additional conferees from the Permanent 
                Select Committee on Intelligence, for 
                consideration of matters within the 
                jurisdiction of that committee under clause 2 
                of rule XLVIII:
                                   Porter J. Goss,
                                   Jerry Lewis,
                                   Norm Dicks,
                As additional conferees from the Committee on 
                Commerce for consideration of sections 344, 
                601, 654, 735, 1021, 3143, 3144, 3201, 3202, 
                3402, and 3404 of the House bill, and sections 
                338, 601, 663, 706, 1064, 2823, 3136, 3140, 
                3151, 3160, 3201, and 3402 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Tom Bliley,
                                   Dan Schaefer,
                Provided that Mr. Oxley is appointed in lieu of 
                Mr. Dan Schaefer of Colorado for consideration 
                of sections 344 and 1021 of the House bill and 
                section 2823 of the Senate amendment:
                                   Michael G. Oxley,
                Provided that Mr. Bilirakis is appointed in 
                lieu of Mr. Dan Schaefer of Colorado for 
                consideration of sections 601, 654, and 735 of 
                the House bill, and sections 338, 601, 663, and 
                706 of the Senate amendment:
                                   Mike Bilirakis,
                Provided that Mr. Tauzin is appointed in lieu 
                of Mr. Dan Schaefer of Colorado for 
                consideration of section 1064 of the Senate 
                amendment:
                                   Billy Tauzin,
                As additional conferees from the Committee on 
                Education and the Workforce, for consideration 
                of sections 374, 658, and 3143 of the House 
                bill, and sections 664 of the Senate amendment, 
                and modifications committed to conference:
                                   Bill Goodling,
                                   Harris W. Fawell,
                                   Loretta Sanchez,
                Provided that Mr. Riggs is appointed in lieu of 
                Mr. Fawell for consideration of section 658 of 
                the House bill and section 664 of the Senate 
                amendment:
                                   Frank Riggs,
                As additional conferees from the Committee on 
                Government Reform and Oversight, for 
                consideration of sections 322 and 3527 of the 
                House bill, and sections 1068, 1107, 2811, and 
                3527 of the Senate amendment, and modifications 
                committed to conference:
                                   Dan Burton,
                                   Stephen Horn,
                As additional conferees from the Committee on 
                House Oversight, for consideration of section 
                543 of the Senate amendment, and modifications 
                committed to conference:
                                   William M. Thomas,
                                   Bob Ney,
                As additional conferees from the Committee on 
                the Judiciary, for consideration of sections 
                374, 1057, 3521, 3522, and 3541 of the House 
                bill, and sections 831, 1073, 1075, 1106, and 
                1201-1216 of the Senate amendment, and 
                modifications committed to conference:
                                   Henry J. Hyde,
                                   Lamar Smith,





                As additional conferees from the Committee on 
                Resources for consideration of sections 214, 
                601, 653, 1021, 2835, 2901-2914 and 3404 of the 
                House bill, and sections 234, 381-392, 601, 
                706, 2819, and 3158 of the Senate amendment, 
                and modifications committed to conference:
                                   Don Young,
                                   Billy Tauzin,
                Provided that Mr. Delahunt is appointed in lieu 
                of Mr. Miller of California for consideration 
                of sections 2901-2914 of the House bill, and 
                sections 381-392 of the Senate amendment:
                                   William Delahunt,
                As additional conferees from the Committee on 
                Science for consideration of sections 214 and 
                3148 of the House bill, and sections 234 and 
                1064 of the Senate amendment, and modifications 
                committed to conference:
                                   F. James Sensenbrenner, Jr.,
                                   Ken Calvert,
                                   George E. Brown, Jr.,
                Provided that Mr. Rohrabacher is appointed in 
                lieu of Mr. Calvert for consideration of 
                section 1064 of the Senate amendment:
                                   Dana Rohrabacher,
                As additional conferees from the Committee on 
                Transportation and Infrastructure for 
                consideration of sections 345, 563, 601, 1021, 
                2861, and 3606 of the House bill, and section 
                601 of the Senate amendment, and modifications 
                committed to conference:
                                   Bud Shuster,
                                   Wayne T. Gilchrest,
                                   Robert A. Borski,
                As additional conferees from the Committee on 
                Veterans' Affairs for consideration of sections 
                751, 752, and 759 of the House bill, and 
                sections 220, 542, 751, 752, 758, 1069, 1074, 
                and 1076 of the Senate amendment, and 
                modifications committed to conference:
                                   Christopher H. Smith,
                                   Mike Bilirakis,
                                   Joseph P. Kennedy,
                                 Managers on the Part of the House.

                                   Strom Thurmond,
                                   John Warner,
                                   John McCain,
                                   Dan Coats,
                                   Bob Smith,
                                   Dirk Kempthorne,
                                   Jim Inhofe,
                                   Rick Santorum,
                                   Olympia Snowe,
                                   Pat Roberts,
                                   Carl Levin,
                                   Ted Kennedy,
                                   Jeff Bingaman,
                                   John Glenn,
                                   Robert C. Byrd,
                                   Chuck Robb,
                                   Joe Lieberman,
                                   Max Cleland,
                                Managers on the Part of the Senate.

                                
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