[House Report 105-746]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-746
_______________________________________________________________________


 
MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR 
           ENDING SEPTEMBER 30, 1999, AND FOR OTHER PURPOSES
                                _______
                                

               September 25, 1998.--Ordered to be printed

_______________________________________________________________________


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

                           CONFERENCE REPORT

                        [To accompany H.R. 4103]

                  Conference Report (H. Rept. 105-746)

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
4103) ``making appropriations for the Department of Defense for 
the fiscal year ending September 30, 1999, and for other 
purposes,'' having met, after full and free conference, have 
agreed to recommend and do recommend to their respective Houses 
as follows:
      That the House recede from its disagreement to the 
amendment of the Senate, and agree to the same with an 
amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:

That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the fiscal year 
ending September 30, 1999, for military functions administered 
by the Department of Defense, and for other purposes, namely:

                                TITLE I

                           MILITARY PERSONNEL

                        Military Personnel, Army

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Army on active duty 
(except members of reserve components provided for elsewhere), 
cadets, and aviation cadets; and for payments pursuant to 
section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
note), to section 229(b) of the Social Security Act (42 U.S.C. 
429(b)), and to the Department of Defense Military Retirement 
Fund; $20,841,687,000.

                        Military Personnel, Navy

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Navy on active duty 
(except members of the Reserve provided for elsewhere), 
midshipmen, and aviation cadets; and for payments pursuant to 
section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
note), to section 229(b) of the Social Security Act (42 U.S.C. 
429(b)), and to the Department of Defense Military Retirement 
Fund; $16,570,754,000.

                    Military Personnel, Marine Corps

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Marine Corps on 
active duty (except members of the Reserve provided for 
elsewhere); and for payments pursuant to section 156 of Public 
Law 97-377, as amended (42 U.S.C. 402 note), to section 229(b) 
of the Social Security Act (42 U.S.C. 429(b)), and to the 
Department of Defense Military Retirement Fund; $6,263,387,000.

                     Military Personnel, Air Force

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Air Force on active 
duty (except members of reserve components provided for 
elsewhere), cadets, and aviation cadets; and for payments 
pursuant to section 156 of Public Law 97-377, as amended (42 
U.S.C. 402 note), to section 229(b) of the Social Security Act 
(42 U.S.C. 429(b)), and to the Department of Defense Military 
Retirement Fund; $17,211,987,000.

                        Reserve Personnel, Army

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Army Reserve 
on active duty under sections 10211, 10302, and 3038 of title 
10, United States Code, or while serving on active duty under 
section 12301(d) of title 10, United States Code, in connection 
with performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing reserve training, or 
while performing drills or equivalent duty or other duty, and 
for members of the Reserve Officers' Training Corps, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $2,167,052,000.

                        Reserve Personnel, Navy

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Navy Reserve 
on active duty under section 10211 of title 10, United States 
Code, or while serving on active duty under section 12301(d) of 
title 10, United States Code, in connection with performing 
duty specified in section 12310(a) of title 10, United States 
Code, or while undergoing reserve training, or while performing 
drills or equivalent duty, and for members of the Reserve 
Officers' Training Corps, and expenses authorized by section 
16131 of title 10, United States Code; and for payments to the 
Department of Defense Military Retirement Fund; $1,426,663,000.

                    Reserve Personnel, Marine Corps

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Marine Corps 
Reserve on active duty under section 10211 of title 10, United 
States Code, or while serving on active duty under section 
12301(d) of title 10, United States Code, in connection with 
performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing reserve training, or 
while performing drills or equivalent duty, and for members of 
the Marine Corps platoon leaders class, and expenses authorized 
by section 16131 of title 10, United States Code; and for 
payments to the Department of Defense Military Retirement Fund; 
$406,616,000.

                      Reserve Personnel, Air Force

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Air Force 
Reserve on active duty under sections 10211, 10305, and 8038 of 
title 10, United States Code, or while serving on active duty 
under section 12301(d) of title 10, United States Code, in 
connection with performing duty specified in section 12310(a) 
of title 10, United States Code, or while undergoing reserve 
training, or while performing drills or equivalent duty or 
other duty, and for members of the Air Reserve Officers' 
Training Corps, and expenses authorized by section 16131 of 
title 10, United States Code; and for payments to the 
Department of Defense Military Retirement Fund; $852,324,000.

                     National Guard Personnel, Army

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Army National 
Guard while on duty under section 10211, 10302, or 12402 of 
title 10 or section 708 of title 32, United States Code, or 
while serving on duty under section 12301(d) of title 10 or 
section 502(f) of title 32, United States Code, in connection 
with performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $3,489,987,000.

                  National Guard Personnel, Air Force

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Air National 
Guard on duty under section 10211, 10305, or 12402 of title 10 
or section 708 of title 32, United States Code, or while 
serving on duty under section 12301(d) of title 10 or section 
502(f) of title 32, United States Code, in connection with 
performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $1,377,109,000.

                                TITLE II

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army


                     (including transfer of funds)


    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Army, as authorized by law; 
and not to exceed $11,437,000 can be used for emergencies and 
extraordinary expenses, to be expended on the approval or 
authority of the Secretary of the Army, and payments may be 
made on his certificate of necessity for confidential military 
purposes; $17,185,623,000 and, in addition, $50,000,000 shall 
be derived by transfer from the National Defense Stockpile 
Transaction Fund: Provided, That of the funds appropriated in 
this paragraph, not less than $355,000,000 shall be made 
available only for conventional ammunition care and 
maintenance.

                    Operation and Maintenance, Navy


                     (including transfer of funds)


    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Navy and the Marine Corps, as 
authorized by law; and not to exceed $5,360,000 can be used for 
emergencies and extraordinary expenses, to be expended on the 
approval or authority of the Secretary of the Navy, and 
payments may be made on his certificate of necessity for 
confidential military purposes; $21,872,399,000 and, in 
addition, $50,000,000 shall be derived by transfer from the 
National Defense Stockpile Transaction Fund.

                Operation and Maintenance, Marine Corps

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Marine Corps, as authorized by 
law; $2,578,718,000.

                  Operation and Maintenance, Air Force


                     (including transfer of funds)


    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Air Force, as authorized by 
law; and not to exceed $7,968,000 can be used for emergencies 
and extraordinary expenses, to be expended on the approval or 
authority of the Secretary of the Air Force, and payments may 
be made on his certificate of necessity for confidential 
military purposes; $19,021,045,000 and, in addition, 
$50,000,000 shall be derived by transfer from the National 
Defense Stockpile Transaction Fund.

                Operation and Maintenance, Defense-Wide

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of activities and agencies of the 
Department of Defense (other than the military departments), as 
authorized by law; $10,914,076,000, of which not to exceed 
$25,000,000 may be available for the CINC initiative fund 
account; and of which not to exceed $29,000,000 can be used for 
emergencies and extraordinary expenses, to be expended on the 
approval or authority of the Secretary of Defense, and payments 
may be made on his certificate of necessity for confidential 
military purposes: Provided, That of the funds appropriated 
under this heading, $10,000,000 shall be made available only 
for use in federally owned educational facilities located on 
military installations for the purpose of transferring title of 
such facilities to the local educational facilities.

                Operation and Maintenance, Army Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Army Reserve; repair of facilities 
and equipment; hire of passenger motor vehicles; travel and 
transportation; care of the dead; recruiting; procurement of 
services, supplies, and equipment; and communications; 
$1,202,622,000.

                Operation and Maintenance, Navy Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Navy Reserve; repair of facilities 
and equipment; hire of passenger motor vehicles; travel and 
transportation; care of the dead; recruiting; procurement of 
services, supplies, and equipment; and communications; 
$957,239,000.

            Operation and Maintenance, Marine Corps Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Marine Corps Reserve; repair of 
facilities and equipment; hire of passenger motor vehicles; 
travel and transportation; care of the dead; recruiting; 
procurement of services, supplies, and equipment; and 
communications; $117,893,000.

              Operation and Maintenance, Air Force Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Air Force Reserve; repair of 
facilities and equipment; hire of passenger motor vehicles; 
travel and transportation; care of the dead; recruiting; 
procurement of services, supplies, and equipment; and 
communications; $1,747,696,000.

             Operation and Maintenance, Army National Guard

    For expenses of training, organizing, and administering the 
Army National Guard, including medical and hospital treatment 
and related expenses in non-Federal hospitals; maintenance, 
operation, and repairs to structures and facilities; hire of 
passenger motor vehicles; personnel services in the National 
Guard Bureau; travel expenses (other than mileage), as 
authorized by law for Army personnel on active duty, for Army 
National Guard division, regimental, and battalion commanders 
while inspecting units in compliance with National Guard Bureau 
regulations when specifically authorized by the Chief, National 
Guard Bureau; supplying and equipping the Army National Guard 
as authorized by law; and expenses of repair, modification, 
maintenance, and issue of supplies and equipment (including 
aircraft); $2,678,015,000: Provided, That not later than March 
15, 1999, the Director of the Army National Guard shall provide 
a report to the congressional defense committees identifying 
the allocation, by installation and activity, of all base 
operations funds appropriated under this heading.

             Operation and Maintenance, Air National Guard

    For operation and maintenance of the Air National Guard, 
including medical and hospital treatment and related expenses 
in non-Federal hospitals; maintenance, operation, repair, and 
other necessary expenses of facilities for the training and 
administration of the Air National Guard, including repair of 
facilities, maintenance, operation, and modification of 
aircraft; transportation of things, hire of passenger motor 
vehicles; supplies, materials, and equipment, as authorized by 
law for the Air National Guard; and expenses incident to the 
maintenance and use of supplies, materials, and equipment, 
including such as may be furnished from stocks under the 
control of agencies of the Department of Defense; travel 
expenses (other than mileage) on the same basis as authorized 
by law for Air National Guard personnel on active Federal duty, 
for Air National Guard commanders while inspecting units in 
compliance with National Guard Bureau regulations when 
specifically authorized by the Chief, National Guard Bureau; 
$3,106,933,000.

             Overseas Contingency Operations Transfer Fund


                     (including transfer of funds)


    For expenses directly relating to Overseas Contingency 
Operations by United States military forces; $439,400,000, to 
remain available until expended: Provided, That the Secretary 
of Defense may transfer these funds only to operation and 
maintenance accounts within this title, and to working capital 
funds: Provided further, That the funds transferred shall be 
merged with and shall be available for the same purposes and 
for the same time period, as the appropriation to which 
transferred: Provided further, That the transfer authority 
provided in this paragraph is in addition to any other transfer 
authority contained elsewhere in this Act.

          United States Court of Appeals for the Armed Forces

    For salaries and expenses necessary for the United States 
Court of Appeals for the Armed Forces; $7,324,000, of which not 
to exceed $2,500 can be used for official representation 
purposes.

                    Environmental Restoration, Army


                     (including transfer of funds)


    For the Department of the Army, $370,640,000, to remain 
available until transferred: Provided, That the Secretary of 
the Army shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris of the 
Department of the Army, or for similar purposes, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of the Army, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or part of the funds transferred from this appropriation 
are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation:Provided 
further, That not more than twenty-five per centum of funds provided 
under this heading may be obligated for environmental remediation by 
the Corps of Engineers under total environmental remediation contracts.

                    Environmental Restoration, Navy


                     (including transfer of funds)


    For the Department of the Navy, $274,600,000, to remain 
available until transferred: Provided, That the Secretary of 
the Navy shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris of the 
Department of the Navy, or for similar purposes, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of the Navy, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or part of the funds transferred from this appropriation 
are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation.

                  Environmental Restoration, Air Force


                     (including transfer of funds)


    For the Department of the Air Force, $372,100,000, to 
remain available until transferred: Provided, That the 
Secretary of the Air Force shall, upon determining that such 
funds are required for environmental restoration, reduction and 
recycling of hazardous waste, removal of unsafe buildings and 
debris of the Department of the Air Force, or for similar 
purposes, transfer the funds made available by this 
appropriation to other appropriations made available to the 
Department of the Air Force, to be merged with and to be 
available for the same purposes and for the same time period as 
the appropriations to which transferred: Provided further, That 
upon a determination that all or part of the funds transferred 
from this appropriation are not necessary for the purposes 
provided herein, such amounts may be transferred back to this 
appropriation.

                Environmental Restoration, Defense-Wide


                     (including transfer of funds)


    For the Department of Defense, $26,091,000, to remain 
available until transferred: Provided, That the Secretary of 
Defense shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris of the 
Department of Defense, or for similar purposes, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of Defense, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or part of the funds transferred from this appropriation 
are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation.

         Environmental Restoration, Formerly Used Defense Sites


                     (including transfer of funds)


    For the Department of the Army, $225,000,000, to remain 
available until transferred: Provided, That the Secretary of 
the Army shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris at 
sites formerly used by the Department of Defense, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of the Army, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or partof the funds transferred from this appropriation are 
not necessary for the purposes provided herein, such amounts may be 
transferred back to this appropriation.

             Overseas Humanitarian, Disaster, and Civic Aid

    For expenses relating to the Overseas Humanitarian, 
Disaster, and Civic Aid programs of the Department of Defense 
(consisting of the programs provided under sections 401, 402, 
404, 2547, and 2551 of title 10, United States Code); 
$50,000,000, to remain available until September 30, 2000.

                  Former Soviet Union Threat Reduction

    For assistance to the republics of the former Soviet Union, 
including assistance provided by contract or by grants, for 
facilitating the elimination and the safe and secure 
transportation and storage of nuclear, chemical and other 
weapons; for establishing programs to prevent the proliferation 
of weapons, weapons components, and weapon-related technology 
and expertise; for programs relating to the training and 
support of defense and military personnel for demilitarization 
and protection of weapons, weapons components and weapons 
technology and expertise; $440,400,000, to remain available 
until September 30, 2001: Provided, That of the amounts 
provided under this heading, $35,000,000 shall be available 
only to support the dismantling and disposal of nuclear 
submarines and submarine reactor components in the Russian Far 
East.

                 Quality of Life Enhancements, Defense

    For expenses, not otherwise provided for, resulting from 
unfunded shortfalls in the repair and maintenance of real 
property of the Department of Defense (including military 
housing and barracks); $455,000,000, for the maintenance of 
real property of the Department of Defense (including minor 
construction and major maintenance and repair), which shall 
remain available for obligation until September 30, 2000, as 
follows:
            Army, $137,000,000;
            Navy, $121,000,000;
            Marine Corps, $27,000,000;
            Air Force, $108,000,000;
            Army Reserve, $26,000,000;
            Navy Reserve, $12,400,000;
            Marine Corps Reserve, $7,600,000;
            Air Force Reserve, $6,000,000; and
            Air National Guard, $10,000,000.

                   Pentagon Renovation Transfer Fund


                     (including transfer of funds)


    For expenses, not otherwise provided for, resulting from 
the Department of Defense renovation of the Pentagon 
Reservation; $279,820,000 shall be derived by transfer from the 
Operation and Maintenance accounts in this Act, for the 
renovation of the Pentagon Reservation, which shall remain 
available for obligation until September 30, 2000, as follows:
            Army, $96,000,000;
            Navy, $32,087,000;
            Marine Corps, $9,513,000;
            Air Force, $52,200,000; and
            Defense-Wide, $90,020,000.

                               TITLE III

                              PROCUREMENT

                       Aircraft Procurement, Army

    For construction, procurement, production, modification, 
and modernization of aircraft, equipment, includingordnance, 
ground handling equipment, spare parts, and accessories therefor; 
specialized equipment and training devices; expansion of public and 
private plants, including the land necessary therefor, for the 
foregoing purposes, and such lands and interests therein, may be 
acquired, and construction prosecuted thereon prior to approval of 
title; and procurement and installation of equipment, appliances, and 
machine tools in public and private plants; reserve plant and 
Government and contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes; $1,388,268,000, to remain 
available for obligation until September 30, 2001.

                       Missile Procurement, Army

    For construction, procurement, production, modification, 
and modernization of missiles, equipment, including ordnance, 
ground handling equipment, spare parts, and accessories 
therefor; specialized equipment and training devices; expansion 
of public and private plants, including the land necessary 
therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes; $1,226,335,000, to remain 
available for obligation until September 30, 2001.

        Procurement of Weapons and Tracked Combat Vehicles, Army

    For construction, procurement, production, and modification 
of weapons and tracked combat vehicles, equipment, including 
ordnance, spare parts, and accessories therefor; specialized 
equipment and training devices; expansion of public and private 
plants, including the land necessary therefor, for the 
foregoing purposes, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $1,548,340,000, to remain available for 
obligation until September 30, 2001.

                    Procurement of Ammunition, Army

    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854 of 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $1,065,955,000, to remain available for 
obligation until September 30, 2001.

                        Other Procurement, Army

    For construction, procurement, production, and modification 
of vehicles, including tactical, support, and non-tracked 
combat vehicles; the purchase of not to exceed 37 passenger 
motor vehicles for replacement only; and the purchase of 54 
vehicles required for physical security of personnel, 
notwithstanding price limitations applicable to passenger 
vehicles but not to exceed $230,000 per vehicle; communications 
and electronic equipment; other support equipment; spare parts, 
ordnance, and accessories therefor; specialized equipment and 
training devices; expansion of public and private plants, 
including the land necessary therefor, for the foregoing 
purposes, and such lands and interests therein, may be 
acquired, and construction prosecuted thereon prior to approval 
of title; and procurement and installation of equipment, 
appliances, and machine tools in public and private plants; 
reserve plant andGovernment and contractor-owned equipment 
layaway; and other expenses necessary for the foregoing purposes; 
$3,339,486,000, to remain available for obligation until September 30, 
2001.

                       Aircraft Procurement, Navy

    For construction, procurement, production, modification, 
and modernization of aircraft, equipment, including ordnance, 
spare parts, and accessories therefor; specialized equipment; 
expansion of public and private plants, including the land 
necessary therefor, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; $7,541,709,000, to remain available for 
obligation until September 30, 2001.

                       Weapons Procurement, Navy

    For construction, procurement, production, modification, 
and modernization of missiles, torpedoes, other weapons, and 
related support equipment including spare parts, and 
accessories therefor; expansion of public and private plants, 
including the land necessary therefor, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; $1,211,419,000, to remain 
available for obligation until September 30, 2001.

            Procurement of Ammunition, Navy and Marine Corps

    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854 of 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $484,203,000, to remain available for 
obligation until September 30, 2001.

                   Shipbuilding and Conversion, Navy

    For expenses necessary for the construction, acquisition, 
or conversion of vessels as authorized by law, including armor 
and armament thereof, plant equipment, appliances, and machine 
tools and installation thereof in public and private plants; 
reserve plant and Government and contractor-owned equipment 
layaway; procurement of critical, long leadtime components and 
designs for vessels to be constructed or converted in the 
future; and expansion of public and private plants, including 
land necessary therefor, and such lands and interests therein, 
may be acquired, and construction prosecuted thereon prior to 
approval of title, as follows:
            NSSN, $1,498,165,000;
            NSSN (AP), $504,736,000;
            CVN-77 (AP), $124,515,000;
            CVN Refuelings (AP), $274,980,000;
            DDG-51 destroyer program, $2,667,078,000;
            DDG-51 destroyer program (AP), $7,396,000;
            LPD-17 amphibious transport dock ship, 
        $638,780,000;
            LHD-8 (AP), $45,000,000;
            Oceanographic ship program, $60,341,000;
            LCAC landing craft air cushion program, 
        $16,000,000; and
            For craft, outfitting, post delivery, conversions, 
        and first destination transportation, $198,761,000;

In all: $6,035,752,000, to remain available for obligation 
until September 30, 2003: Provided, That additionalobligations 
may be incurred after September 30, 2003, for engineering services, 
tests, evaluations, and other such budgeted work that must be performed 
in the final stage of ship construction: Provided further, That none of 
the funds provided under this heading for the construction or 
conversion of any naval vessel to be constructed in shipyards in the 
United States shall be expended in foreign facilities for the 
construction of major components of such vessel: Provided further, That 
none of the funds provided under this heading shall be used for the 
construction of any naval vessel in foreign shipyards.

                        Other Procurement, Navy

    For procurement, production, and modernization of support 
equipment and materials not otherwise provided for, Navy 
ordnance (except ordnance for new aircraft, new ships, and 
ships authorized for conversion); the purchase of not to exceed 
246 passenger motor vehicles for replacement only; and the 
purchase of one vehicle required for physical security of 
personnel, notwithstanding price limitations applicable to 
passenger vehicles but not to exceed $225,000 per vehicle; 
lease of passenger motor vehicles; expansion of public and 
private plants, including the land necessary therefor, and such 
lands and interests therein, may be acquired, and construction 
prosecuted thereon prior to approval of title; and procurement 
and installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; $4,072,662,000, to remain 
available for obligation until September 30, 2001.

                       Procurement, Marine Corps

    For expenses necessary for the procurement, manufacture, 
and modification of missiles, armament, military equipment, 
spare parts, and accessories therefor; plant equipment, 
appliances, and machine tools, and installation thereof in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; vehicles for the Marine 
Corps, including the purchase of not to exceed 37 passenger 
motor vehicles for replacement only; and expansion of public 
and private plants, including land necessary therefor, and such 
lands and interests therein, may be acquired, and construction 
prosecuted thereon prior to approval of title; $874,216,000, to 
remain available for obligation until September 30, 2001.

                    Aircraft Procurement, Air Force

    For construction, procurement, and modification of aircraft 
and equipment, including armor and armament, specialized ground 
handling equipment, and training devices, spare parts, and 
accessories therefor; specialized equipment; expansion of 
public and private plants, Government-owned equipment and 
installation thereof in such plants, erection of structures, 
and acquisition of land, for the foregoing purposes, and such 
lands and interests therein, may be acquired, and construction 
prosecuted thereon prior to approval of title; reserve plant 
and Government and contractor-owned equipment layaway; and 
other expenses necessary for the foregoing purposes including 
rents and transportation of things; $8,095,507,000, to remain 
available for obligation until September 30, 2001.

                     Missile Procurement, Air Force

    For construction, procurement, and modification of 
missiles, spacecraft, rockets, and related equipment, including 
spare parts and accessories therefor, ground handling 
equipment, and training devices; expansion of public and 
private plants, Government-owned equipment and installation 
thereof in such plants, erection of structures, and acquisition 
of land, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes including rents 
and transportation of things; $2,069,827,000, to remain 
available for obligation until September 30, 2001.

                  Procurement of Ammunition, Air Force

    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854 of 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $379,425,000, to remain available for 
obligation until September 30, 2001.

                      Other Procurement, Air Force

    For procurement and modification of equipment (including 
ground guidance and electronic control equipment, and ground 
electronic and communication equipment), and supplies, 
materials, and spare parts therefor, not otherwise provided 
for; the purchase of not to exceed 267 passenger motor vehicles 
for replacement only; the purchase of one vehicle required for 
physical security of personnel, notwithstanding price 
limitations applicable to passenger vehicles but not to exceed 
$240,000 per vehicle; lease of passenger motor vehicles; and 
expansion of public and private plants, Government-owned 
equipment and installation thereof in such plants, erection of 
structures, and acquisition of land, for the foregoing 
purposes, and such lands and interests therein, may be 
acquired, and construction prosecuted thereon, prior to 
approval of title; reserve plant and Government and contractor-
owned equipment layaway; $6,960,483,000, to remain available 
for obligation until September 30, 2001.

                       Procurement, Defense-Wide

    For expenses of activities and agencies of the Department 
of Defense (other than the military departments) necessary for 
procurement, production, and modification of equipment, 
supplies, materials, and spare parts therefor, not otherwise 
provided for; the purchase of not to exceed 346 passenger motor 
vehicles for replacement only; the purchase of 4 vehicles 
required for physical security of personnel, notwithstanding 
price limitations applicable to passenger vehicles but not to 
exceed $165,000 per vehicle; expansion of public and private 
plants, equipment, and installation thereof in such plants, 
erection of structures, and acquisition of land for the 
foregoing purposes, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; reserve plant and Government and contractor-
owned equipment layaway; $1,944,833,000, to remain available 
for obligation until September 30, 2001.

                  National Guard and Reserve Equipment

    For procurement of aircraft, missiles, tracked combat 
vehicles, ammunition, other weapons, and other procurement for 
the reserve components of the Armed Forces; $352,000,000, to 
remain available for obligation until September 30, 2001: 
Provided, That the Chiefs of the Reserve and National Guard 
components shall, not later than 30 days after the enactment of 
this Act, individually submit to the congressional defense 
committees the modernization priority assessment for their 
respective Reserve or National Guard component.

                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment; $5,031,788,000, to remain available for 
obligation until September 30, 2000: Provided, That of the 
funds made available under this heading, $15,000,000 shall be 
available only to commence in fiscal year 1999 a live fire, 
side-by-side operational test and evaluation of the air-to-air 
Starstreak and air-to-air Stinger missiles fired from the AH-
64D Apache helicopter: Provided further, That in conjunction 
with the development of a test plan, the Secretary of the Army 
shall certify the following, in writing, to the congressional 
defense committees:
            (1) Engagement tests can be safely conducted with 
        both Starstreak and Stinger missiles from the AH-64D 
        helicopter at air speeds consistent with the normal 
        operating limits of that aircraft;
            (2) The Starstreak missiles utilized in the test 
        will be provided at no cost to the United States 
        Government;
            (3) None of the $15,000,000 provided will be used 
        to develop modifications to the Starstreak or the 
        Stinger missiles; and
            (4) Both the Starstreak and Stinger missiles can be 
        fired from the AH-64D aircraft consistent with the 
        survivability of the aircraft and missile performance 
        standards contained in the Army's Air-to-Air Missile 
        Capability Need Statement approved by the Department of 
        the Army in January 1997.

            Research, Development, Test and Evaluation, Navy

    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment; $8,636,649,000, to remain available for 
obligation until September 30, 2000: Provided, That funds 
appropriated in this paragraph which are available for the V-22 
may be used to meet unique requirements of the Special 
Operation Forces: Provided further, That notwithstanding 10 
U.S.C. 2366, none of the funds made available under this 
heading may be used to conduct system-level live-fire shock 
tests on the SSN-21 class of submarines unless the Commander-
in-Chief of the United States Atlantic Command certifies in 
writing to the congressional defense committees that such 
testing must be conducted to meet operational requirements for 
those submarines.

         Research, Development, Test and Evaluation, Air Force

    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment; $13,758,811,000, to remain available for 
obligation until September 30, 2000.

        Research, Development, Test and Evaluation, Defense-Wide

    For expenses of activities and agencies of the Department 
of Defense (other than the military departments), necessary for 
basic and applied scientific research, development, test and 
evaluation; advanced research projects as may be designated and 
determined by the Secretary of Defense, pursuant to law; 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment; $9,036,551,000, to remain available for 
obligation until September 30, 2000: Provided, That not less 
than $310,446,000 of the funds made available under this 
heading shall be made available only for the Sea-Based Wide 
Area Defense (Navy Upper-Tier) program: Provided further, That 
funding for the Sea-Based Wide Area Defense (Navy Upper-Tier) 
program in this or any other Act shall be used for research, 
development and deployment including, but not limited to, 
continuing ongoing risk reduction activities, initiating system 
engineering for an initial Block I capability, and deployment 
at the earliest feasible time following Aegis Lightweight 
Exoatmospheric Projectile (LEAP) intercept flight tests.

               Developmental Test and Evaluation, Defense

    For expenses, not otherwise provided for, of independent 
activities of the Director, Test and Evaluation in the 
direction and supervision of developmental test and evaluation, 
including performance and joint developmental testing and 
evaluation; and administrative expenses in connection 
therewith; $258,606,000, to remain available for obligation 
until September 30, 2000.

                Operational Test and Evaluation, Defense

    For expenses, not otherwise provided for, necessary for the 
independent activities of the Director, Operational Test and 
Evaluation in the direction and supervision of operational test 
and evaluation, including initial operational test and 
evaluation which is conducted prior to, and in support of, 
production decisions; joint operational testing and evaluation; 
and administrative expenses in connection therewith; 
$34,245,000, to remain available for obligation until September 
30, 2000.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

    For the Defense Working Capital Funds; $94,500,000.

                     National Defense Sealift Fund


                     (including transfer of funds)


    For National Defense Sealift Fund programs, projects, and 
activities, and for expenses of the National Defense Reserve 
Fleet, as established by section 11 of the Merchant Ship Sales 
Act of 1946 (50 U.S.C. App. 1744); $708,366,000, to remain 
available until expended: Provided, That none of the funds 
provided in this paragraph shall be used to award a new 
contract that provides for the acquisition of any of the 
following major components unless such components are 
manufactured in the United States: auxiliary equipment, 
including pumps, for all shipboard services; propulsion system 
components (that is; engines, reduction gears, and propellers); 
shipboard cranes; and spreaders for shipboard cranes: Provided 
further, That the exercise of an option in a contract awarded 
through the obligation of previously appropriated funds shall 
not be considered to be the award of a new contract: Provided 
further, That notwithstanding any other provision of law, of 
the funds available under this heading, $28,800,000 shall be 
transferred to ``Alteration of Bridges'': Provided further, 
That the Secretary of the military department responsible for 
such procurement may waive the restrictions in the first 
proviso on a case-by-case basis by certifying in writing to the 
Committees on Appropriations of the House of Representatives 
and the Senate that adequate domestic supplies are not 
available to meet Department of Defense requirements on a 
timely basis and that such an acquisition must be made in order 
to acquire capability for national security purposes.

                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

    For expenses, not otherwise provided for, for medical and 
health care programs of the Department of Defense, as 
authorized by law; $10,149,872,000, of which $9,727,985,000 
shall be for Operation and maintenance, of which not to exceed 
two per centum shall remain available until September 30, 2000, 
of which $402,387,000, to remain available for obligation until 
September 30, 2001, shall be for Procurement, and of which 
$19,500,000, to remain available for obligation until September 
30, 2000, shall be for Research, development, test and 
evaluation: Provided, That of the amounts made available under 
this heading for Operation and maintenance, not less than 
$25,000,000 shall be only for breast cancer treatment and 
access to care.

            Chemical Agents and Munitions Destruction, Army

    For expenses, not otherwise provided for, necessary for the 
destruction of the United States stockpile of lethal chemical 
agents and munitions in accordance with the provisions of 
section 1412 of the Department of Defense Authorization Act, 
1986 (50 U.S.C. 1521), and for the destruction of other 
chemical warfare materials that are not in the chemical weapon 
stockpile; $780,150,000, of which $491,700,000 shall be for 
Operation and maintenance, $115,670,000 shall be for 
Procurement to remain available until September 30, 2001, and 
$172,780,000 shall be for Research, development, test and 
evaluation to remain available until September 30, 2000: 
Provided, That of the funds available under this heading, 
$1,000,000 shall be available until expended each year only for 
a Johnston Atoll off-island leave program: Provided further, 
That the Secretaries concerned shall, pursuant to uniform 
regulations, prescribe travel and transportation allowances for 
travel by participants in the off-island leave program.

         Drug Interdiction and Counter-Drug Activities, Defense


                     (including transfer of funds)


    For drug interdiction and counter-drug activities of the 
Department of Defense, for transfer to appropriations available 
to the Department of Defense for military personnel of the 
reserve components serving under the provisions of title 10 and 
title 32, United States Code; for Operation and maintenance; 
for Procurement; and for Research, development, test and 
evaluation; $735,582,000: Provided, That the funds appropriated 
under this heading shall be available for obligation for the 
same time period and for the same purpose as the appropriation 
to which transferred: Provided further, That the transfer 
authority provided in this paragraph is in addition to any 
transfer authority contained elsewhere in this Act.

                    Office of the Inspector General

    For expenses and activities of the Office of the Inspector 
General in carrying out the provisions of the Inspector General 
Act of 1978, as amended; $132,064,000, of which $130,764,000 
shall be for Operation and maintenance, of which not to exceed 
$500,000 is available for emergencies and extraordinary 
expenses to be expended on the approval or authority of the 
Inspector General, and payments may be made on his certificate 
of necessity for confidential military purposes; and of which 
$1,300,000, to remain available until September 30, 2001, shall 
be for Procurement.

                               TITLE VII

                            RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

    For payment to the Central Intelligence Agency Retirement 
and Disability System Fund, to maintain proper funding level 
for continuing the operation of the Central Intelligence Agency 
Retirement and Disability System; $201,500,000.

               Intelligence Community Management Account


                     (including transfer of funds)


    For necessary expenses of the Intelligence Community 
Management Account; $129,123,000, of which $30,290,000 for the 
Advanced Research and Development Committee shall remain 
available until September 30, 2000: Provided, That of the funds 
appropriated under this heading, $27,000,000 shall be 
transferred to the Department of Justice for the National Drug 
Intelligence Center to support the Department of Defense's 
counter-drug intelligence responsibilities, and of the said 
amount, $1,500,000 for Procurement shall remain available until 
September 30, 2001, and $3,000,000 for Research, development, 
test and evaluation shall remain available until September 30, 
2000.

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

    For payment to Kaho'olawe Island Conveyance, Remediation, 
and Environmental Restoration Fund, as authorized by law; 
$25,000,000, to remain available until expended.

                 National Security Education Trust Fund

    For the purposes of title VIII of Public Law 102-183, 
$3,000,000, to be derived from the National Security Education 
Trust Fund, to remain available until expended.

                               TITLE VIII

                           GENERAL PROVISIONS

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


                          (transfer of funds)


    Sec. 8005. Upon determination by the Secretary of Defense 
that such action is necessary in the national interest, he may, 
with the approval of the Office of Management and Budget, 
transfer not to exceed $1,650,000,000 of working capital funds 
of the Department of Defense or funds made available in this 
Act to the Department of Defense for military functions (except 
military construction) between such appropriations or funds or 
any subdivision thereof, to be merged with and to be available 
for the same purposes, and for the same time period, as the 
appropriation or fund to which transferred: Provided, That such 
authority to transfer may not be used unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where 
the item for which funds are requested has been denied by 
Congress: Provided further, That the Secretary of Defense shall 
notify the Congress promptly of all transfers made pursuant to 
this authority or any other authority in this Act: Provided 
further, That no part of the funds in this Act shall be 
available to prepare or present a request to the Committees on 
Appropriations for reprogramming of funds, unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where 
the item for which reprogramming is requested has been denied 
by the Congress.


                          (transfer of funds)


    Sec. 8006. During the current fiscal year, cash balances in 
working capital funds of the Department of Defense established 
pursuant to section 2208 of title 10, United States Code, may 
be maintained in only such amounts as are necessary at any time 
for cash disbursements to be made from such funds: Provided, 
That transfers may be made between such funds: Provided 
further, That transfers may be made between working capital 
funds and the ``Foreign Currency Fluctuations, Defense'' 
appropriation and the ``Operation and Maintenance'' 
appropriation accounts in such amounts as may be determined by 
the Secretary of Defense, with the approval of the Office of 
Management and Budget, except that such transfers may not be 
made unless the Secretary of Defense has notified the Congress 
of the proposed transfer. Except in amounts equal to the 
amounts appropriated to working capital funds in this Act, no 
obligations may be made against a working capital fund to 
procure or increase the value of war reserve material 
inventory, unless the Secretary of Defense has notified the 
Congress prior to any such obligation.
    Sec. 8007. Funds appropriated by this Act may not be used 
to initiate a special access program without prior notification 
30 calendar days in session in advance to the congressional 
defense committees.
    Sec. 8008. None of the funds provided in this Act shall be 
available to initiate: (1) a multiyear contract that employs 
economic order quantity procurement in excess of $20,000,000 in 
any one year of the contract or that includes an unfunded 
contingent liability in excess of $20,000,000; or (2) a 
contract for advance procurement leading to a multiyear 
contract that employs economic order quantity procurement in 
excess of $20,000,000 in any one year, unless the congressional 
defense committees have been notified at least 30 days in 
advance of the proposed contract award: Provided, That no part 
of any appropriation contained in this Act shall be available 
to initiate a multiyear contract for which the economic order 
quantity advance procurement is not funded at least to the 
limits of the Government's liability: Provided further, That no 
part of any appropriation contained in this Act shall be 
available to initiate multiyear procurement contracts for any 
systems or component thereof if the value of the multiyear 
contract would exceed $500,000,000 unless specifically provided 
in this Act: Provided further, That no multiyear procurement 
contract can be terminated without 10-day prior notification to 
the congressional defense committees: Provided further, That 
the execution of multiyear authority shall require the use of a 
present value analysis to determine lowest cost compared to an 
annual procurement.
    Funds appropriated in title III of this Act may be used for 
multiyear procurement contracts as follows:
            E-2C aircraft;
            Longbow Hellfire missile; and
            Medium Tactical Vehicle Replacement (MTVR).
    Sec. 8009. Within the funds appropriated for the operation 
and maintenance of the Armed Forces, funds are hereby 
appropriated pursuant to section 401 of title 10, United States 
Code, for humanitarian and civic assistance costs under chapter 
20 of title 10, United States Code. Such funds may also be 
obligated for humanitarian and civic assistance costs 
incidental to authorized operations and pursuant to authority 
granted in section 401 of chapter 20 of title 10, United States 
Code, and these obligations shall be reported to Congress on 
September 30 of each year: Provided, That funds available for 
operation and maintenance shall be available for providing 
humanitarian and similar assistance by using Civic Action Teams 
in the Trust Territories of the Pacific Islands and freely 
associated states of Micronesia, pursuant to the Compact of 
Free Association as authorized by Public Law 99-239: Provided 
further, That upon a determination by the Secretary of the Army 
that such action is beneficial for graduate medical education 
programs conducted at Army medical facilities located in 
Hawaii, the Secretary of the Army may authorize the provision 
of medical services at such facilities and transportation to 
such facilities, on a nonreimbursable basis, for civilian 
patients from American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Marshall Islands, the Federated States of 
Micronesia, Palau, and Guam.
    Sec. 8010. (a) During fiscal year 1999, the civilian 
personnel of the Department of Defense may not be managed on 
the basis of any end-strength, and the management of such 
personnel during that fiscal year shall not be subject to any 
constraint or limitation (known as an end-strength) on the 
number of such personnel who may be employed on the last day of 
such fiscal year.
    (b) The fiscal year 2000 budget request for the Department 
of Defense as well as all justification material and other 
documentation supporting the fiscal year 2000 Department of 
Defense budget request shall be prepared and submitted to the 
Congress as if subsections (a) and (b) of this provision were 
effective with regard to fiscal year 2000.
    (c) Nothing in this section shall be construed to apply to 
military (civilian) technicians.
    Sec. 8011. Notwithstanding any other provision of law, none 
of the funds made available by this Act shall be used by the 
Department of Defense to exceed, outside the 50 United States, 
its territories, and the District of Columbia, 125,000 civilian 
workyears: Provided, That workyears shall be applied as defined 
in the Federal Personnel Manual: Provided further, That 
workyears expended in dependent student hiring programs for 
disadvantaged youths shall not be included in this workyear 
limitation.
    Sec. 8012. None of the funds made available by this Act 
shall be used in any way, directly or indirectly, to influence 
congressional action on any legislation or appropriation 
matters pending before the Congress.
    Sec. 8013. (a) None of the funds appropriated by this Act 
shall be used to make contributions to the Department of 
Defense Education Benefits Fund pursuant to section 2006(g) of 
title 10, United States Code, representing the normal cost for 
future benefits under section 3015(c) of title 38, United 
States Code, for any member of the armed services who, on or 
after the date of enactment of this Act--
            (1) enlists in the armed services for a period of 
        active duty of less than three years; or
            (2) receives an enlistment bonus under section 308a 
        or 308f of title 37, United States Code,
nor shall any amounts representing the normal cost of such 
future benefits be transferred from the Fund by the Secretary 
of the Treasury to the Secretary of Veterans Affairs pursuant 
to section 2006(d) of title 10, United States Code; nor shall 
the Secretary of Veterans Affairs pay such benefits to any such 
member: Provided, That in the case of a member covered by 
clause (1), these limitations shall not apply to members in 
combat arms skills or to members who enlist in the armed 
services on or after July 1, 1989, under a program continued or 
established by the Secretary of Defense in fiscal year 1991 to 
test the cost-effective use of special recruiting incentives 
involving not more than nineteen noncombat arms skills approved 
in advance by the Secretary of Defense: Provided further, That 
this subsection applies only to active components of the Army.
    (b) None of the funds appropriated by this Act shall be 
available for the basic pay and allowances of any member of the 
Army participating as a full-time student and receiving 
benefits paid by the Secretary of Veterans Affairs from the 
Department of Defense Education Benefits Fund when time spent 
as a full-time student is credited toward completion of a 
service commitment: Provided, That this subsection shall not 
apply to those members who have reenlisted with this option 
prior to October 1, 1987: Provided further, That this 
subsection applies only to active components of the Army.
    Sec. 8014. None of the funds appropriated by this Act shall 
be available to convert to contractor performance an activity 
or function of the Department of Defense that, on or after the 
date of enactment of this Act, is performed by more than ten 
Department of Defense civilian employees until a most efficient 
and cost-effective organization analysis is completed on such 
activity or function and certification of the analysis is made 
to the Committees on Appropriations of the House of 
Representatives and the Senate: Provided, That this section and 
subsections (a), (b), and (c) of 10 U.S.C. 2461 shall not apply 
to a commercial or industrial type function of the Department 
of Defense that: (1) is included on the procurement list 
established pursuant to section 2 of the Act of June 25, 1938 
(41 U.S.C. 47), popularly referred to as the Javits-Wagner-
O'Day Act; (2) is planned to be converted to performance by a 
qualified nonprofit agency for the blind or by a qualified 
nonprofit agency for other severely handicapped individuals in 
accordance with that Act; or (3) is planned to be converted to 
performance by a qualified firm under 51 per centum Native 
American ownership.


                          (transfer of funds)


    Sec. 8015. Funds appropriated in title III of this Act for 
the Department of Defense Pilot Mentor-Protege Program may be 
transferred to any other appropriation contained in this Act 
solely for the purpose of implementing a Mentor-Protege Program 
developmental assistance agreement pursuant to section 831 of 
the National Defense Authorization Act for Fiscal Year 1991 
(Public Law 101-510; 10 U.S.C. 2301 note), as amended, under 
the authority of this provision or any other transfer authority 
contained in this Act.
    Sec. 8016. None of the funds in this Act may be available 
for the purchase by the Department of Defense (and its 
departments and agencies) of welded shipboard anchor and 
mooring chain 4 inches in diameter and under unless the anchor 
and mooring chain are manufactured in the United States from 
components which are substantially manufactured in the United 
States: Provided, That for the purpose of this section 
manufactured will include cutting, heat treating, quality 
control, testing of chain and welding (including the forging 
and shot blasting process): Provided further, That for the 
purpose of this section substantially all of the components of 
anchor and mooring chain shall be considered to be produced or 
manufactured in the United States if the aggregate cost of the 
components produced or manufactured in the United States 
exceeds the aggregate cost of the components produced or 
manufactured outside the United States: Provided further, That 
when adequate domestic supplies are not available to meet 
Department of Defense requirements on a timely basis, the 
Secretary of the service responsible for the procurement may 
waive this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations that such an 
acquisition must be made in order to acquire capability for 
national security purposes.
    Sec. 8017. None of the funds appropriated by this Act 
available for the Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS) shall be available for the 
reimbursement of any health care provider for inpatient mental 
health service for care received when a patient is referred to 
a provider of inpatient mental health care or residential 
treatment care by a medical or health care professional having 
an economic interest in the facility to which the patient is 
referred: Provided, That this limitation does not apply in the 
case of inpatient mental health services provided under the 
program for the handicapped under subsection (d) of section 
1079 of title 10, United States Code, provided as partial 
hospital care, or provided pursuant to a waiver authorized by 
the Secretary of Defense because of medical or psychological 
circumstances of the patient that are confirmed by a health 
professional who is not a Federal employee after a review, 
pursuant to rules prescribed by the Secretary, which takes into 
account the appropriate level of care for the patient, the 
intensity of services required by the patient, and the 
availability of that care.
    Sec. 8018. Funds available in this Act may be used to 
provide transportation for the next-of-kin of individuals who 
have been prisoners of war or missing in action from the 
Vietnam era to an annual meeting in the United States, under 
such regulations as the Secretary of Defense may prescribe.
    Sec. 8019. Notwithstanding any other provision of law, 
during the current fiscal year, the Secretary of Defense may, 
by executive agreement, establish with host nation governments 
in NATO member states a separate account into which such 
residual value amounts negotiated in the return of United 
States military installations in NATO member states may be 
deposited, in the currency of the host nation, in lieu of 
direct monetary transfers to the United States Treasury: 
Provided, That such credits may be utilized only for the 
construction of facilities to support United States military 
forces in that host nation, or such real property maintenance 
and base operating costs that are currently executed through 
monetary transfers to such host nations: Provided further, That 
the Department of Defense's budget submission for fiscal year 
2000 shall identify such sums anticipated in residual value 
settlements, and identify such construction, real property 
maintenance or base operating costs that shall be funded by the 
host nation through such credits: Provided further, That all 
military construction projects to be executed from such 
accounts must be previously approved in a prior Act of 
Congress: Provided further, That each such executive agreement 
with a NATO member host nation shall be reported to the 
congressional defense committees, the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate 30 days prior to 
the conclusion and endorsement of any such agreement 
established under this provision.
    Sec. 8020. None of the funds available to the Department of 
Defense may be used to demilitarize or dispose of M-1 Carbines, 
M-1 Garand rifles, M-14 rifles, .22 caliber rifles, .30 caliber 
rifles, or M-1911 pistols.
    Sec. 8021. Notwithstanding any other provision of law, none 
of the funds appropriated by this Act shall be available to pay 
more than 50 per centum of an amount paid to any person under 
section 308 of title 37, United States Code, in a lump sum.
    Sec. 8022. No more than $500,000 of the funds appropriated 
or made available in this Act shall be used during a single 
fiscal year for any single relocation of an organization, unit, 
activity or function of the Department of Defense into or 
within the National Capital Region: Provided, That the 
Secretary of Defense may waive this restriction on a case-by-
case basis by certifying in writing to the congressional 
defense committees that such a relocation is required in the 
best interest of the Government.
    Sec. 8023. A member of a reserve component whose unit or 
whose residence is located in a State which is not contiguous 
with another State is authorized to travel in a space required 
status on aircraft of the Armed Forces between home and place 
of inactive duty training, or place of duty in lieu of unit 
training assembly, when there is no road or railroad 
transportation (or combination of road and railroad 
transportation between those locations): Provided, That a 
member traveling in that status on a military aircraft pursuant 
to the authority provided in this section is not authorized to 
receive travel, transportation, or per diem allowances in 
connection with that travel.
    Sec. 8024. (a) In addition to the funds provided elsewhere 
in this Act, $8,000,000 is appropriated only for incentive 
payments authorized by section 504 of the Indian Financing Act 
of 1974 (25 U.S.C. 1544): Provided, That contractors 
participating in the test program established by section 854 of 
Public Law 101-189 (15 U.S.C. 637 note) shall be eligible for 
the program established by section 504 of the Indian Financing 
Act of 1974 (25 U.S.C. 1544).
    (b) Section 8024 of the Department of Defense 
Appropriations Act (Public Law 105-56) is amended by striking 
out ``That these payments'' and all that follows through 
``Provided further,''.
    Sec. 8025. During the current fiscal year, funds 
appropriated or otherwise available for any Federal agency, the 
Congress, the judicial branch, or the District of Columbia may 
be used for the pay, allowances, and benefits of an employee as 
defined by section 2105 of title 5, United States Code, or an 
individual employed by the government of the District of 
Columbia, permanent or temporary indefinite, who--
            (1) is a member of a Reserve component of the Armed 
        Forces, as described in section 10101 of title 10, 
        United States Code, or the National Guard, as described 
        in section 101 of title 32, United States Code;
            (2) performs, for the purpose of providing military 
        aid to enforce the law or providing assistance to civil 
        authorities in the protection or saving of life or 
        property or prevention of injury--
                     (A) Federal service under sections 331, 
                332, 333, or 12406 of title 10, or other 
                provision of law, as applicable; or
                     (B) full-time military service for his or 
                her State, the District of Columbia, the 
                Commonwealth of Puerto Rico, or a territory of 
                the United States; and
            (3) requests and is granted--
                     (A) leave under the authority of this 
                section; or
                     (B) annual leave, which may be granted 
                without regard to the provisions of sections 
                5519 and 6323(b) of title 5, if such employee 
                is otherwise entitled to such annual leave:

Provided, That any employee who requests leave under subsection 
(3)(A) for service described in subsection (2) of this section 
is entitled to such leave, subject to the provisions of this 
section and of the last sentence of section 6323(b) of title 5, 
and such leave shall be considered leave under section 6323(b) 
of title 5, United States Code.
    Sec. 8026. None of the funds appropriated by this Act shall 
be available to perform any cost study pursuant to the 
provisions of OMB Circular A-76 if the study beingperformed 
exceeds a period of 24 months after initiation of such study with 
respect to a single function activity or 48 months after initiation of 
such study for a multi-function activity.
    Sec. 8027. Funds appropriated by this Act for the American 
Forces Information Service shall not be used for any national 
or international political or psychological activities.
    Sec. 8028. Notwithstanding any other provision of law or 
regulation, the Secretary of Defense may adjust wage rates for 
civilian employees hired for certain health care occupations as 
authorized for the Secretary of Veterans Affairs by section 
7455 of title 38, United States Code.
    Sec. 8029. None of the funds appropriated or made available 
in this Act shall be used to reduce or disestablish the 
operation of the 53rd Weather Reconnaissance Squadron of the 
Air Force Reserve, if such action would reduce the WC-130 
Weather Reconnaissance mission below the levels funded in this 
Act.
    Sec. 8030. (a) Of the funds for the procurement of supplies 
or services appropriated by this Act, qualified nonprofit 
agencies for the blind or other severely handicapped shall be 
afforded the maximum practicable opportunity to participate as 
subcontractors and suppliers in the performance of contracts 
let by the Department of Defense.
    (b) During the current fiscal year, a business concern 
which has negotiated with a military service or defense agency 
a subcontracting plan for the participation by small business 
concerns pursuant to section 8(d) of the Small Business Act (15 
U.S.C. 637(d)) shall be given credit toward meeting that 
subcontracting goal for any purchases made from qualified 
nonprofit agencies for the blind or other severely handicapped.
    (c) For the purpose of this section, the phrase ``qualified 
nonprofit agency for the blind or other severely handicapped'' 
means a nonprofit agency for the blind or other severely 
handicapped that has been approved by the Committee for the 
Purchase from the Blind and Other Severely Handicapped under 
the Javits-Wagner-O'Day Act (41 U.S.C. 46-48).
    Sec. 8031. During the current fiscal year, net receipts 
pursuant to collections from third party payers pursuant to 
section 1095 of title 10, United States Code, shall be made 
available to the local facility of the uniformed services 
responsible for the collections and shall be over and above the 
facility's direct budget amount.
    Sec. 8032. During the current fiscal year, the Department 
of Defense is authorized to incur obligations of not to exceed 
$350,000,000 for purposes specified in section 2350j(c) of 
title 10, United States Code, in anticipation of receipt of 
contributions, only from the Government of Kuwait, under that 
section: Provided, That upon receipt, such contributions from 
the Government of Kuwait shall be credited to the 
appropriations or fund which incurred such obligations.
    Sec. 8033. Of the funds made available in this Act, not 
less than $28,300,000 shall be available for the Civil Air 
Patrol Corporation, of which $23,497,000 shall be available for 
Civil Air Patrol Corporation operation and maintenance to 
support readiness activities which includes $3,800,000 for the 
Civil Air Patrol counterdrug program: Provided, That funds 
identified for ``Civil Air Patrol'' under this section are 
intended for and shall be for the exclusive use of the Civil 
Air Patrol Corporation and not for the Air Force or any unit 
thereof.
    Sec. 8034. (a) None of the funds appropriated in this Act 
are available to establish a new Department of Defense 
(department) federally funded research and development center 
(FFRDC), either as a new entity, or as a separate entity 
administrated by an organization managing another FFRDC, or as 
a nonprofit membership corporation consisting of a consortium 
of other FFRDCs and other non-profit entities.
    (b) Limitation on Compensation--Federally Funded Research 
and Development Center (FFRDC).--No member of a Board of 
Directors, Trustees, Overseers, Advisory Group, Special Issues 
Panel, Visiting Committee, or any similar entity of a defense 
FFRDC, and no paid consultant to any defense FFRDC, except when 
acting in a technical advisory capacity, may be compensated for 
his or her services as a member of such entity, or as a paid 
consultant by more than one FFRDC in a fiscal year: Provided, 
That a member of any such entity referred to previously in this 
subsection shall be allowed travel expenses and per diem as 
authorized under the Federal Joint Travel Regulations, when 
engaged in the performance of membership duties.
    (c) Notwithstanding any other provision of law, none of the 
funds available to the department from any source during fiscal 
year 1999 may be used by a defense FFRDC, through a fee or 
other payment mechanism, for construction of new buildings, for 
payment of cost sharing for projects funded by government 
grants, for absorption of contract overruns, or for certain 
charitable contributions, not to include employee participation 
in community service and/or development.
    (d) Notwithstanding any other provision of law, of the 
funds available to the department during fiscal year 1999, not 
more than 6,206 staff years of technical effort (staff years) 
may be funded for defense FFRDCs: Provided, That of the 
specific amount referred to previously in this subsection, not 
more than 1,105 staff years may be funded for the defense 
studies and analysis FFRDCs.
    (e) Within 60 days after enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report presenting the specific amounts of staff 
years of technical effort to be allocated by the department for 
each defense FFRDC during fiscal year 1999: Provided, That, 
after the submission of the report required by this subsection, 
the department may not reallocate more than five per centum of 
an FFRDC's staff years among other defense FFRDCs until 30 days 
after a detailed justification for any such reallocation is 
submitted to the congressional defense committees.
    (f) The Secretary of Defense shall, with the submission of 
the department's fiscal year 2000 budget request, submit a 
report presenting the specific amounts of staff years of 
technical effort to be allocated for each defense FFRDC during 
that fiscal year.
    (g) Notwithstanding any other provision of law, the 
Secretary of Defense shall control the total number of staff 
years to be performed by defense FFRDCs during fiscal year 1999 
so as to reduce the total amounts appropriated in titles II, 
III, and IV of this Act by $62,000,000: Provided, That the 
total amounts appropriated in titles II, III, and IV of this 
Act are hereby reduced by $62,000,000 to reflect savings from 
the use of defense FFRDCs by the department.
    (h) Notwithstanding any other provision of law, none of the 
reductions for advisory and assistance services contained in 
this Act shall be applied to defense FFRDCs.
    Sec. 8035. None of the funds appropriated or made available 
in this Act shall be used to procure carbon, alloy or armor 
steel plate for use in any Government-owned facility or 
property under the control of the Department of Defense which 
were not melted and rolled in the United States or Canada: 
Provided, That these procurement restrictions shall apply to 
any and all Federal Supply Class 9515, American Society of 
Testing and Materials (ASTM) or American Iron and Steel 
Institute (AISI) specifications of carbon, alloy or armor steel 
plate: Provided further, That the Secretary of the military 
department responsible for the procurement may waive this 
restriction on a case-by-case basis by certifying in writing to 
the Committees on Appropriations of the House of 
Representatives and the Senate that adequate domestic supplies 
are not available to meet Department of Defense requirements on 
a timely basis and that such an acquisition must be made in 
orderto acquire capability for national security purposes: 
Provided further, That these restrictions shall not apply to contracts 
which are in being as of the date of enactment of this Act.
    Sec. 8036. For the purposes of this Act, the term 
``congressional defense committees'' means the National 
Security Committee of the House of Representatives, the Armed 
Services Committee of the Senate, the Subcommittee on Defense 
of the Committee on Appropriations of the Senate, and the 
Subcommittee on National Security of the Committee on 
Appropriations of the House of Representatives.
    Sec. 8037. During the current fiscal year, the Department 
of Defense may acquire the modification, depot maintenance and 
repair of aircraft, vehicles and vessels as well as the 
production of components and other Defense-related articles, 
through competition between Department of Defense depot 
maintenance activities and private firms: Provided, That the 
Senior Acquisition Executive of the military department or 
defense agency concerned, with power of delegation, shall 
certify that successful bids include comparable estimates of 
all direct and indirect costs for both public and private bids: 
Provided further, That Office of Management and Budget Circular 
A-76 shall not apply to competitions conducted under this 
section.
    Sec. 8038. (a)(1) If the Secretary of Defense, after 
consultation with the United States Trade Representative, 
determines that a foreign country which is party to an 
agreement described in paragraph (2) has violated the terms of 
the agreement by discriminating against certain types of 
products produced in the United States that are covered by the 
agreement, the Secretary of Defense shall rescind the 
Secretary's blanket waiver of the Buy American Act with respect 
to such types of products produced in that foreign country.
    (2) An agreement referred to in paragraph (1) is any 
reciprocal defense procurement memorandum of understanding, 
between the United States and a foreign country pursuant to 
which the Secretary of Defense has prospectively waived the Buy 
American Act for certain products in that country.
    (b) The Secretary of Defense shall submit to Congress a 
report on the amount of Department of Defense purchases from 
foreign entities in fiscal year 1999. Such report shall 
separately indicate the dollar value of items for which the Buy 
American Act was waived pursuant to any agreement described in 
subsection (a)(2), the Trade Agreement Act of 1979 (19 U.S.C. 
2501 et seq.), or any international agreement to which the 
United States is a party.
    (c) For purposes of this section, the term ``Buy American 
Act'' means title III of the Act entitled ``An Act making 
appropriations for the Treasury and Post Office Departments for 
the fiscal year ending June 30, 1934, and for other purposes'', 
approved March 3, 1933 (41 U.S.C. 10a et seq.).
    Sec. 8039. Appropriations contained in this Act that remain 
available at the end of the current fiscal year as a result of 
energy cost savings realized by the Department of Defense shall 
remain available for obligation for the next fiscal year to the 
extent, and for the purposes, provided in section 2865 of title 
10, United States Code.


                     (including transfer of funds)


    Sec. 8040. Amounts deposited during the current fiscal year 
to the special account established under 40 U.S.C. 485(h)(2) 
and to the special account established under 10 U.S.C. 
2667(d)(1) are appropriated and shall be available until 
transferred by the Secretary of Defense to current applicable 
appropriations or funds of the Department of Defense under the 
terms and conditions specified by 40 U.S.C. 485(h)(2)(A) and 
(B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be 
available for the same time period and the same purposes as the 
appropriation to which transferred.
    Sec. 8041. During the current fiscal year, appropriations 
available to the Department of Defense may be used to reimburse 
a member of a reserve component of the Armed Forces who is not 
otherwise entitled to travel and transportation allowances and 
who occupies transient government housing while performing 
active duty for training or inactive duty training: Provided, 
That such members may be provided lodging in kind if transient 
government quarters are unavailable as if the member was 
entitled to such allowances under subsection (a) of section 404 
of title 37, United States Code: Provided further, That if 
lodging in kind is provided, any authorized service charge or 
cost of such lodging may be paid directly from funds 
appropriated for operation and maintenance of the reserve 
component of the member concerned.
    Sec. 8042. The President shall include with each budget for 
a fiscal year submitted to the Congress under section 1105 of 
title 31, United States Code, materials that shall identify 
clearly and separately the amounts requested in the budget for 
appropriation for that fiscal year for salaries and expenses 
related to administrative activities of the Department of 
Defense, the military departments, and the Defense Agencies.
    Sec. 8043. Notwithstanding any other provision of law, 
funds available for ``Drug Interdiction and Counter-Drug 
Activities, Defense'' may be obligated for the Young Marines 
program.
    Sec. 8044. During the current fiscal year, amounts 
contained in the Department of Defense Overseas Military 
Facility Investment Recovery Account established by section 
2921(c)(1) of the National Defense Authorization Act of 1991 
(Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
until expended for the payments specified by section 2921(c)(2) 
of that Act: Provided, That none of the funds made available 
for expenditure under this section may be transferred or 
obligated until thirty days after the Secretary of Defense 
submits a report which details the balance available in the 
Overseas Military Facility Investment Recovery Account, all 
projected income into the account during fiscal years 1999 and 
2000, and the specific expenditures to be made using funds 
transferred from this account during fiscal year 1999.
    Sec. 8045. Of the funds appropriated or otherwise made 
available by this Act, not more than $119,200,000 shall be 
available for payment of the operating costs of NATO 
Headquarters: Provided, That the Secretary of Defense may waive 
this section for Department of Defense support provided to NATO 
forces in and around the former Yugoslavia.
    Sec. 8046. During the current fiscal year, appropriations 
which are available to the Department of Defense for operation 
and maintenance may be used to purchase items having an 
investment item unit cost of not more than $100,000.
    Sec. 8047. (a) During the current fiscal year, none of the 
appropriations or funds available to the Department of Defense 
Working Capital Funds shall be used for the purchase of an 
investment item for the purpose of acquiring a new inventory 
item for sale or anticipated sale during the current fiscal 
year or a subsequent fiscal year to customers of the Department 
of Defense Working Capital Funds if such an item would not have 
been chargeable to the Department of Defense Business 
Operations Fund during fiscal year 1994 and if the purchase of 
such an investment item would be chargeable during the current 
fiscal year to appropriations made to the Department of Defense 
for procurement.
    (b) The fiscal year 2000 budget request for the Department 
of Defense as well as all justification material and other 
documentation supporting the fiscal year 2000 Department of 
Defense budget shall be prepared and submitted to the Congress 
on the basis that any equipment which was classified as an end 
item and funded in a procurement appropriation contained in 
this Act shall be budgeted for in a proposed fiscal year 2000 
procurement appropriation and not in the supply management 
business area or any other area or category of the Department 
of Defense Working Capital Funds.
    Sec. 8048. None of the funds appropriated by this Act for 
programs of the Central Intelligence Agency shall remain 
available for obligation beyond the current fiscal year, except 
for funds appropriated for the Reserve for Contingencies, which 
shall remain available until September 30, 2000: Provided, That 
funds appropriated, transferred, or otherwise credited to the 
Central Intelligence Agency Central Services Working Capital 
Fund during this or any prior or subsequent fiscal year shall 
remain available until expended.
    Sec. 8049. Notwithstanding any other provision of law, 
funds made available in this Act for the Defense Intelligence 
Agency may be used for the design, development, and deployment 
of General Defense Intelligence Program intelligence 
communications and intelligence information systems for the 
Services, the Unified and Specified Commands, and the component 
commands.
    Sec. 8050. Of the funds appropriated by the Department of 
Defense under the heading ``Operation and Maintenance, Defense-
Wide'', not less than $8,000,000 shall be made available only 
for the mitigation of environmental impacts, including training 
and technical assistance to tribes, related administrative 
support, the gathering of information, documenting of 
environmental damage, and developing a system for 
prioritization of mitigation and cost to complete estimates for 
mitigation, on Indian lands resulting from Department of 
Defense activities.
    Sec. 8051. Amounts collected for the use of the facilities 
of the National Science Center for Communications and 
Electronics during the current fiscal year pursuant to section 
1459(g) of the Department of Defense Authorization Act, 1986, 
and deposited to the special account established under 
subsection 1459(g)(2) of that Act are appropriated and shall be 
available until expended for the operation and maintenance of 
the Center as provided for in subsection 1459(g)(2).
    Sec. 8052. None of the funds appropriated in this Act may 
be used to fill the commander's position at any military 
medical facility with a health care professional unless the 
prospective candidate can demonstrate professional 
administrative skills.
    Sec. 8053. (a) None of the funds appropriated in this Act 
may be expended by an entity of the Department of Defense 
unless the entity, in expending the funds, complies with the 
Buy American Act. For purposes of this subsection, the term 
``Buy American Act'' means title III of the Act entitled ``An 
Act making appropriations for the Treasury and Post Office 
Departments for the fiscal year ending June 30, 1934, and for 
other purposes'', approved March 3, 1933 (41 U.S.C. 10a et 
seq.).
    (b) If the Secretary of Defense determines that a person 
has been convicted of intentionally affixing a label bearing a 
``Made in America'' inscription to any product sold in or 
shipped to the United States that is not made in America, the 
Secretary shall determine, in accordance with section 2410f of 
title 10, United States Code, whether the person should be 
debarred from contracting with the Department of Defense.
    (c) In the case of any equipment or products purchased with 
appropriations provided under this Act, it is the sense of the 
Congress that any entity of the Department of Defense, in 
expending the appropriation, purchase only American-made 
equipment and products, provided that American-made equipment 
and products are cost-competitive, quality-competitive, and 
available in a timely fashion.
    Sec. 8054. None of the funds appropriated by this Act shall 
be available for a contract for studies, analysis, or 
consulting services entered into without competition on the 
basis of an unsolicited proposal unless the head of the 
activity responsible for the procurement determines--
            (1) as a result of thorough technical evaluation, 
        only one source is found fully qualified to perform the 
        proposed work;
            (2) the purpose of the contract is to explore an 
        unsolicited proposal which offers significant 
        scientific or technological promise, represents the 
        product of original thinking, and was submitted in 
        confidence by one source; or
            (3) the purpose of the contract is to take 
        advantage of unique and significant industrial 
        accomplishment by a specific concern, or to insure that 
        a new product or idea of a specific concern is given 
        financial support:
Provided, That this limitation shall not apply to contracts in 
an amount of less than $25,000, contracts related to 
improvements of equipment that is in development or production, 
or contracts as to which a civilian official of the Department 
of Defense, who has been confirmed by the Senate, determines 
that the award of such contract is in the interest of the 
national defense.
    Sec. 8055. (a) Except as provided in subsections (b) and 
(c), none of the funds made available by this Act may be used--
            (1) to establish a field operating agency; or
            (2) to pay the basic pay of a member of the Armed 
        Forces or civilian employee of the department who is 
        transferred or reassigned from a headquarters activity 
        if the member or employee's place of duty remains at 
        the location of that headquarters.
    (b) The Secretary of Defense or Secretary of a military 
department may waive the limitations in subsection (a), on a 
case-by-case basis, if the Secretary determines, and certifies 
to the Committees on Appropriations of the House of 
Representatives and Senate that the granting of the waiver will 
reduce the personnel requirements or the financial requirements 
of the department.
    (c) This section does not apply to field operating agencies 
funded within the National Foreign Intelligence Program.
    Sec. 8056. Funds appropriated by this Act for intelligence 
activities are deemed to be specifically authorized by the 
Congress for purposes of section 504 of the National Security 
Act of 1947 (50 U.S.C. 414) during fiscal year 1999 until the 
enactment of the Intelligence Authorization Act for Fiscal Year 
1999.
    Sec. 8057. Notwithstanding section 303 of Public Law 96-487 
or any other provision of law, the Secretary of the Navy is 
authorized to lease real and personal property at Naval Air 
Facility, Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for 
commercial, industrial or other purposes: Provided, That 
notwithstanding any other provision of law, the Secretary of 
the Navy may remove hazardous materials from facilities, 
buildings, and structures at Adak, Alaska, and may demolish or 
otherwise dispose of such facilities, buildings, and 
structures.


                             (rescissions)


    Sec. 8058. Of the funds provided in Department of Defense 
Appropriations Acts, the following funds are hereby rescinded 
as of the date of enactment of this Act from the following 
accounts and programs in the specified amounts:
            Under the heading, ``Shipbuilding and Conversion, 
        Navy, 1988/2001'':
                    TRIDENT ballistic missile submarine 
                program, $3,062,696;
                    SSN-688 attack submarine program, 
                $8,146,796;
                    CG-47 cruiser program, $4,000,000;
                    LSD-41 cargo variant ship program, 
                $256,141;
                    LHD-1 amphibious assault ship program, 
                $505,938;
                    For craft, outfitting, and post delivery, 
                $3,459,756;
            Under the heading, ``Shipbuilding and Conversion, 
        Navy, 1989/2000'':
                    TRIDENT ballistic missile submarine 
                program, $2,750,679;
                    SSN-688 attack submarine program, 
                $5,663,109;
                    AO conversion program, $881,619;
                    T-AGOS surveillance ship program, 
                $1,989,383;
                    T-AO fleet oiler program, $3,451,287;
                    MHC coastal mine hunter program, $150,000;
                    For craft, outfitting, and post delivery, 
                $2,521,413;
            Under the heading, ``Shipbuilding and Conversion, 
        Navy, 1990/2002'':
                    TRIDENT ballistic missile submarine 
                program, $6,746,000;
                    LSD-41 cargo variant ship program, 
                $8,701,615;
                    Aircraft carrier service life extension 
                program, $890,209;
                    For craft, outfitting, and post delivery, 
                $2,636,339;
            Under the heading, ``Shipbuilding and Conversion, 
        Navy, 1991/2001'':
                    Service craft program, $143,740;
                    LCAC landing craft air cushion program, 
                $126,698;
                    For craft, outfitting, and post delivery, 
                $1,549,000;
            Under the heading, ``Shipbuilding and Conversion, 
        Navy, 1992/2001'':
                    For craft, outfitting, and post delivery, 
                $3,307,524;
            Under the heading, ``Shipbuilding and Conversion, 
        Navy, 1993/2002'':
                    For craft, outfitting, and post delivery, 
                $4,540,746.
            ``Missile Procurement, Air Force, 1997/1999'', 
        $8,000,000;
            ``Research, Development, Test and Evaluation, 
        Defense-Wide, 1997/1998'', $67,000,000;
            ``Missile Procurement, Army, 1998/2000'', 
        $12,800,000;
            ``Procurement of Weapons and Tracked Combat 
        Vehicles, Army, 1998/2000''; $6,700,000;
            ``Other Procurement, Army, 1998/2000'', 
        $24,000,000;
            ``Weapons Procurement, Navy, 1998/2000'', 
        $2,000,000;
            ``Procurement of Ammunition, Navy and Marine Corps, 
        1998/2000'', $12,560,000;
            Under the heading, ``Shipbuilding and Conversion, 
        Navy, 1998/2002'':
                    CVN refuelings, $35,000,000;
            ``Other Procurement, Navy, 1998/2000'', 
        $28,500,000;
            ``Aircraft Procurement, Air Force, 1998/2000'', 
        $8,934,000;
            ``Missile Procurement, Air Force, 1998/2000'', 
        $4,200,000;
            ``Procurement of Ammunition, Air Force, 1998/
        2000'', $14,106,000;
            ``Other Procurement, Air Force, 1998/2000'', 
        $3,508,000;
            ``Research, Development, Test and Evaluation, Navy, 
        1998/1999'', $20,500,000;
            ``Research, Development, Test and Evaluation, Air 
        Force, 1998/1999'', $17,620,000;
            ``National Defense Sealift Fund, Public Law 104-
        208'', $65,000,000; and
            ``National Defense Sealift Fund, Public Law 104-
        61'', $20,000,000.
    Sec. 8059. None of the funds available in this Act may be 
used to reduce the authorized positions for military (civilian) 
technicians of the Army National Guard, the Air National Guard, 
Army Reserve and Air Force Reserve for the purpose of applying 
any administratively imposed civilian personnel ceiling, 
freeze, or reduction on military (civilian) technicians, unless 
such reductions are a direct result of a reduction in military 
force structure.
    Sec. 8060. None of the funds appropriated or otherwise made 
available in this Act may be obligated or expended for 
assistance to the Democratic People's Republic of North Korea 
unless specifically appropriated for that purpose.
    Sec. 8061. During the current fiscal year, funds 
appropriated in this Act are available to compensate members of 
the National Guard for duty performed pursuant to a plan 
submitted by a Governor of a State and approved by the 
Secretary of Defense under section 112 of title 32, United 
States Code: Provided, That during the performance of such 
duty, the members of the National Guard shall be under State 
command and control: Provided further, That such duty shall be 
treated as full-time National Guard duty for purposes of 
sections 12602(a)(2) and (b)(2) of title 10, United States 
Code.
    Sec. 8062. Funds appropriated in this Act for operation and 
maintenance of the Military Departments, Unified and Specified 
Commands and Defense Agencies shall be available for 
reimbursement of pay, allowances and other expenses which would 
otherwise be incurred against appropriations for the National 
Guard and Reserve when members of the National Guard and 
Reserve provide intelligence or counterintelligence support to 
Unified Commands, Defense Agencies and Joint Intelligence 
Activities, including the activities and programs included 
within the National Foreign Intelligence Program (NFIP), the 
Joint Military Intelligence Program (JMIP), and the Tactical 
Intelligence and Related Activities (TIARA) aggregate: 
Provided, That nothing in this section authorizes deviation 
from established Reserve and National Guard personnel and 
training procedures.
    Sec. 8063. During the current fiscal year, none of the 
funds appropriated in this Act may be used to reduce the 
civilian medical and medical support personnel assigned to 
military treatment facilities below the September 30, 1998 
level: Provided, That the Service Surgeons General may waive 
this section by certifying to the congressional defense 
committees that the beneficiary population is declining in some 
catchment areas and civilian strength reductions may be 
consistent with responsible resource stewardship and 
capitation-based budgeting.


                     (including transfer of funds)


    Sec. 8064. None of the funds appropriated in this Act may 
be transferred to or obligated from the Pentagon Reservation 
Maintenance Revolving Fund, unless the Secretary of Defense 
certifies that the total cost for the planning, design, 
construction and installation of equipment for the renovation 
of the Pentagon Reservation will not exceed $1,118,000,000.
    Sec. 8065. (a) None of the funds available to the 
Department of Defense for any fiscal year for drug interdiction 
or counter-drug activities may be transferred to any other 
department or agency of the United States except as 
specifically provided in an appropriations law.
    (b) None of the funds available to the Central Intelligence 
Agency for any fiscal year for drug interdiction and counter-
drug activities may be transferred to any other department or 
agency of the United States except as specifically provided in 
an appropriations law.


                          (transfer of funds)


    Sec. 8066. Appropriations available in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' for 
increasing energy and water efficiency in Federal buildings 
may, during their period of availability, be transferred to 
other appropriations or funds of the Department of Defense for 
projects related to increasing energy and water efficiency, to 
be merged with and to be available for the same general 
purposes, and for the same time period, as the appropriation or 
fund to which transferred.
    Sec. 8067. None of the funds appropriated by this Act may 
be used for the procurement of ball and roller bearings other 
than those produced by a domestic source and of domestic 
origin: Provided, That the Secretary of the military department 
responsible for such procurement may waive this restriction on 
a case-by-case basis by certifying in writing to the Committees 
on Appropriations of the House of Representatives and the 
Senate, that adequate domestic supplies are not available to 
meet Department of Defense requirements on a timely basis and 
that such an acquisition must be made in order to acquire 
capability for national security purposes.
    Sec. 8068. Notwithstanding any other provision of law, 
funds available to the Department of Defense shall be made 
available to provide transportation of medical supplies and 
equipment, on a nonreimbursable basis, to American Samoa: 
Provided, That notwithstanding any other provision of law, 
funds available to the Department of Defense shall be made 
available to provide transportation of medical supplies and 
equipment, on a nonreimbursable basis, to the Indian Health 
Service when it is in conjunction with a civil-military 
project.
    Sec. 8069. None of the funds in this Act may be used to 
purchase any supercomputer which is not manufactured in the 
United States, unless the Secretary of Defense certifies to the 
congressional defense committees that such an acquisition must 
be made in order to acquire capability for national security 
purposes that is not available from United States 
manufacturers.
    Sec. 8070. Notwithstanding any other provision of law, the 
Naval shipyards of the United States shall be eligible to 
participate in any manufacturing extension program financed by 
funds appropriated in this or any other Act.
    Sec. 8071. Notwithstanding any other provision of law, each 
contract awarded by the Department of Defense during the 
current fiscal year for construction or service performed in 
whole or in part in a State which is not contiguous with 
another State and has an unemployment rate in excess of the 
national average rate of unemployment as determined by the 
Secretary of Labor, shall include a provision requiring the 
contractor to employ, for the purpose of performing that 
portion of the contract in such State that is not contiguous 
with another State, individuals who are residents of such State 
and who, in the case of any craft or trade, possess or would be 
able to acquire promptly the necessary skills: Provided, That 
the Secretary of Defense may waive the requirements of this 
section, on a case-by-case basis, in the interest of national 
security.
    Sec. 8072. During the current fiscal year, the Army shall 
use the former George Air Force Base as the airhead for the 
National Training Center at Fort Irwin: Provided, That none of 
the funds in this Act shall be obligated or expended to 
transport Army personnel into Edwards Air Force Base for 
training rotations at the National Training Center.
    Sec. 8073. (a) The Secretary of Defense shall submit, on a 
quarterly basis, a report to the congressional defense 
committees, the Committee on International Relations of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate setting forth all costs (including incremental 
costs) incurred by the Department of Defense during the 
preceding quarter in implementing or supporting resolutions of 
the United Nations Security Council, including any such 
resolution calling for international sanctions, international 
peacekeeping operations, and humanitarian missions undertaken 
by the Department of Defense. The quarterly report shall 
include an aggregate of all such Department of Defense costs by 
operation or mission.
    (b) The Secretary of Defense shall detail in the quarterly 
reports all efforts made to seek credit against past United 
Nations expenditures and all efforts made to seek compensation 
from the United Nations for costs incurred by the Department of 
Defense in implementing and supporting United Nations 
activities.
    Sec. 8074. (a) Limitation on Transfer of Defense Articles 
and Services.--Notwithstanding any other provision of law, none 
of the funds available to the Department of Defense for the 
current fiscal year may be obligated or expended to transfer to 
another nation or an international organization any defense 
articles or services (other than intelligence services) for use 
in the activities described in subsection (b) unless the 
congressional defense committees, the Committee on 
International Relations of the House of Representatives, and 
the Committee on Foreign Relations of the Senate are notified 
15 days in advance of such transfer.
    (b) Covered Activities.--This section applies to--
            (1) any international peacekeeping or peace-
        enforcement operation under the authority of chapter VI 
        or chapter VII of the United Nations Charter under the 
        authority of a United Nations Security Council 
        resolution; and
            (2) any other international peacekeeping, peace-
        enforcement, or humanitarian assistance operation.
    (c) Required Notice.--A notice under subsection (a) shall 
include the following:
            (1) A description of the equipment, supplies, or 
        services to be transferred.
            (2) A statement of the value of the equipment, 
        supplies, or services to be transferred.
            (3) In the case of a proposed transfer of equipment 
        or supplies--
                     (A) a statement of whether the inventory 
                requirements of all elements of the Armed 
                Forces (including the reserve components) for 
                the type of equipment or supplies to be 
                transferred have been met; and
                     (B) a statement of whether the items 
                proposed to be transferred will have to be 
                replaced and, if so, how the President proposes 
                to provide funds for such replacement.
    Sec. 8075. To the extent authorized by subchapter VI of 
chapter 148 of title 10, United States Code, the Secretary of 
Defense shall issue loan guarantees in support of United States 
defense exports not otherwise provided for: Provided, That the 
total contingent liability of the United States for guarantees 
issued under the authority of this section may not exceed 
$15,000,000,000: Provided further, That the exposure fees 
charged and collected by the Secretary for each guarantee, 
shall be paid by the country involved and shall not be financed 
as part of a loan guaranteed by the United States: Provided 
further, That the Secretary shall provide quarterly reports to 
the Committees on Appropriations, Armed Services and Foreign 
Relations of the Senate and the Committees on Appropriations, 
National Security and International Relations in the House of 
Representatives on the implementation of this program: Provided 
further, That amounts charged for administrative fees and 
deposited to the special account provided for under section 
2540c(d) of title 10, shall be available for paying the costs 
of administrative expenses of the Department of Defense that 
are attributable to the loan guarantee program under subchapter 
VI of chapter 148 of title 10.
    Sec. 8076. None of the funds available to the Department of 
Defense shall be obligated or expended to make a financial 
contribution to the United Nations for the cost of an United 
Nations peacekeeping activity (whether pursuant to assessment 
or a voluntary contribution) or for payment of any United 
States arrearage to the United Nations.
    Sec. 8077. None of the funds available to the Department of 
Defense under this Act shall be obligated or expended to pay a 
contractor under a contract with the Department of Defense for 
costs of any amount paid by the contractor to an employee 
when--
            (1) such costs are for a bonus or otherwise in 
        excess of the normal salary paid by the contractor to 
        the employee; and
            (2) such bonus is part of restructuring costs 
        associated with a business combination.
    Sec. 8078. (a) None of the funds appropriated or otherwise 
made available in this Act may be used to transport or provide 
for the transportation of chemical munitions or agents to the 
Johnston Atoll for the purpose of storing or demilitarizing 
such munitions or agents.
    (b) The prohibition in subsection (a) shall not apply to 
any obsolete World War II chemical munition or agent of the 
United States found in the World War II Pacific Theater of 
Operations.
    (c) The President may suspend the application of subsection 
(a) during a period of war in which the United States is a 
party.
    Sec. 8079. None of the funds provided in title II of this 
Act for ``Former Soviet Union Threat Reduction'' may be 
obligated or expended to finance housing for any individual who 
was a member of the military forces of the Soviet Union or for 
any individual who is or was a member of the military forces of 
the Russian Federation.


                     (including transfer of funds)


    Sec. 8080. During the current fiscal year, no more than 
$10,000,000 of appropriations made in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' may be 
transferred to appropriations available for the pay of military 
personnel, to be merged with, and to be available for the same 
time period as the appropriations to which transferred, to be 
used in support of such personnel in connection with support 
and services for eligible organizations and activities outside 
the Department of Defense pursuant to section 2012 of title 10, 
United States Code.
    Sec. 8081. For purposes of section 1553(b) of title 31, 
United States Code, any subdivision of appropriations made in 
this Act under the heading ``Shipbuilding and Conversion, 
Navy'' shall be considered to be for the same purpose as any 
subdivision under the heading ``Shipbuilding and Conversion, 
Navy'' appropriations in any prior year, and the 1 percent 
limitation shall apply to the total amount of the 
appropriation.
    Sec. 8082. During the current fiscal year, in the case of 
an appropriation account of the Department of Defense for which 
the period of availability for obligation has expired or which 
has closed under the provisions of section 1552 of title 31, 
United States Code, and which has a negative unliquidated or 
unexpended balance, an obligation or an adjustment of an 
obligation may be charged to any current appropriation account 
for the same purpose as the expired or closed account if--
            (1) the obligation would have been properly 
        chargeable (except as to amount) to the expired or 
        closed account before the end of the period of 
        availability or closing of that account;
            (2) the obligation is not otherwise properly 
        chargeable to any current appropriation account of the 
        Department of Defense; and
            (3) in the case of an expired account, the 
        obligation is not chargeable to a current appropriation 
        of the Department of Defense under the provisions of 
        section 1405(b)(8) of the National Defense 
        Authorization Act for Fiscal Year 1991, Public Law 101-
        510, as amended (31 U.S.C. 1551 note): Provided, That 
        in the case of an expired account, if subsequent review 
        or investigation discloses that there was not in fact a 
        negative unliquidated or unexpended balance in the 
        account, any charge to a current account under the 
        authority of this section shall be reversed and 
        recorded against the expired account: Provided further, 
        That the total amount charged to a current 
        appropriation under this section may not exceed an 
        amount equal to 1 percent of the total appropriation 
        for that account.


                          (transfer of funds)


    Sec. 8083. Upon enactment of this Act, the Secretary of 
Defense shall make the following transfers of funds: Provided, 
That the amounts transferred shall be available for the same 
purposes as the appropriations to which transferred, and for 
the same time period as the appropriation from which 
transferred: Provided further, That the amounts shall be 
transferred between the following appropriations in the amount 
specified:
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1988/2001'':
                            Trident ballistic missile submarine 
                        program, $2,674,000;
                            SSN-688 attack submarine program, 
                        $32,232,000;
                            CG-47 cruiser program, $10,886,000;
                            Carrier replacement program, 
                        $40,360,000;
                            LHD-1 amphibious assault ship 
                        program, $3,001,000;
                            LSD-41 cargo variant ship program, 
                        $790,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1995/2001'':
                            Carrier replacement program, 
                        $89,943,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1989/2000'':
                            Trident ballistic missile submarine 
                        program, $3,028,000;
                            LHD-1 amphibious assault ship 
                        program, $2,153,000;
                            MHC coastal minehunter program, 
                        $1,298,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1995/2000'':
                            Carrier replacement program, 
                        $6,479,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1990/2002'':
                            Trident ballistic missile submarine 
                        program, $10,796,000;
                            SSN-688 attack submarine program, 
                        $1,000,000;
                            DDG-51 destroyer program, 
                        $5,066,000;
                            LCAC landing craft, air cushioned 
                        program, $509,000;
                            MCM mine countermeasures ship 
                        program, $1,200,000;
                            AOE combat support ship program, 
                        $1,674,000;
                            AO(J) jumboized oiler program, 
                        $1,899,000;
                            Oceanographic research program, 
                        $394,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1995/2002'':
                            Carrier replacement program, 
                        $22,538,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1991/2001'':
                            DDG-51 destroyer program, 
                        $1,500,000;
                            LHD-1 amphibious assault ship 
                        program, $7,500,000;
                            LSD-41 cargo variant ship program, 
                        $1,227,000;
                            LCAC landing craft, air cushioned 
                        program, $392,000;
                            MHC coastal minehunter program, 
                        $2,400,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1991/2001'':
                            SSN-21 attack submarine program, 
                        $13,019,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1992/2001'':
                            Prior year escalation, $52,934,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1991/2001'':
                            SSN-21 attack submarine program, 
                        $16,967,000;
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1994/2001'':
                            MCS(C) mine warfare command and 
                        control ship program, $5,729,000;
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1995/2001'':
                            DDG-51 destroyer program, 
                        $24,261,000;
                            Carrier replacement program, 
                        $5,977,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1993/2002'':
                            AOE combat support ship program, 
                        $7,753,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1995/2002'':
                            DDG-51 destroyer program, 
                        $7,753,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1996/2000'':
                            SSN-21 attack submarine program, 
                        $26,526,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1995/2000'':
                            DDG-51 destroyer program, $368,000;
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1996/2000'':
                            DDG-51 destroyer program, 
                        $2,756,000;
                            LHD-1 amphibious assault ship 
                        program, $21,850,000;
                            Fast Patrol craft program, 
                        $345,000;
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1997/2000'':
                            AGOR SWATH oceanographic research 
                        program, $1,207,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1998/2002'':
                            DDG-51(AP) destroyer program, 
                        $9,009,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1998/2002'':
                            DDG-51 destroyer program, 
                        $9,009,000.
    Sec. 8084. The Under Secretary of Defense (Comptroller) 
shall submit to the congressional defense committees by 
February 1, 1999 a detailed report identifying, by amount and 
by separate budget activity, activity group, subactivity group, 
line item, program element, program, project, subproject, and 
activity, any activity for which the fiscal year 2000 budget 
request was reduced because Congress appropriated funds above 
the President's budget request for that specific activity for 
fiscal year 1999.
    Sec. 8085. Funds appropriated in title II of this Act for 
supervision and administration costs for facilities maintenance 
and repair, minor construction, or design projects may be 
obligated at the time the reimbursable order is accepted by the 
performing activity: Provided, That for the purpose of this 
section, supervision and administration costs includes all in-
house Government cost.
    Sec. 8086. The Secretary of Defense may waive reimbursement 
of the cost of conferences, seminars, courses of instruction, 
or similar educational activities of the Asia-Pacific Center 
for Security Studies for military officers and civilian 
officials of foreign nations if the Secretary determines that 
attendance by such personnel, without reimbursement, is in the 
national security interest of the United States: Provided, That 
costs for which reimbursement is waived pursuant to this 
subsection shall be paid from appropriations available for the 
Asia-Pacific Center.
    Sec. 8087. (a) Notwithstanding any other provision of law, 
the Chief of the National Guard Bureau may permit the use of 
equipment of the National Guard Distance Learning Project by 
any person or entity on a space-available, reimbursable basis. 
The Chief of the National Guard Bureau shall establish the 
amount of reimbursement for such use on a case-by-case basis.
    (b) Amounts collected under subsection (a) shall be 
credited to funds available for the National Guard Distance 
Learning Project and be available to defray the costs 
associated with the use of equipment of the project under that 
subsection. Such funds shall be available for such purposes 
without fiscal year limitation.
    Sec. 8088. Using funds available by this Act or any other 
Act, the Secretary of the Air Force, pursuant to a 
determination under section 2690 of title 10, United States 
Code, may implement cost-effective agreements for required 
heating facility modernization in the Kaiserslautern Military 
Community in the Federal Republic of Germany: Provided, That in 
the City of Kaiserslautern such agreements will include the use 
of United States anthracite as the base load energy for 
municipal district heat to the United States Defense 
installations: Provided further, That at Landstuhl Army 
Regional Medical Center and Ramstein Air Base, furnished heat 
may be obtained from private, regional or municipal services, 
if provisions are included for the consideration of United 
States coal as an energy source.
    Sec. 8089. During the current fiscal year, the amounts 
which are necessary for the operation and maintenance of the 
Fisher Houses administered by the Departments of the Army, the 
Navy, and the Air Force are hereby appropriated, to be derived 
from amounts which are available in the applicable Fisher House 
trust fund established under 10 U.S.C. 2221 for the Fisher 
Houses of each such department.
    Sec. 8090. During the current fiscal year, refunds 
attributable to the use of the Government travel card by 
military personnel and civilian employees of the Department of 
Defense and refunds attributable to official Government travel 
arranged by Government Contracted Travel Management Centers may 
be credited to operation and maintenance accounts of the 
Department of Defense which are current when the refunds are 
received.
    Sec. 8091. During the current fiscal year, not more than a 
total of $60,000,000 in withdrawal credits may be made by the 
Marine Corps Supply Management activity group of the Navy 
Working Capital Fund, Department of Defense Working Capital 
Funds, to the credit of current applicable appropriations of a 
Department of Defense activity in connection with the 
acquisition of critical low density repairables that are 
capitalized into the Navy Working Capital Fund.
    Sec. 8092. Notwithstanding 31 U.S.C. 3902, during the 
current fiscal year interest penalties may be paid by the 
Department of Defense from funds financing the operation of the 
military department or defense agency with which the invoice or 
contract payment is associated.
    Sec. 8093. At the time the President submits his budget for 
fiscal year 2000 and any fiscal year thereafter, the Department 
of Defense shall transmit to the congressional defense 
committees a budget justification document for the active and 
reserve Military Personnel accounts, to be known as the ``M-
1'', which shall identify, at the budget activity, activity 
group, and subactivity group level, the amounts requested by 
the President to be appropriated to the Department of Defense 
for military personnel in any budget request, or amended budget 
request, for that fiscal year.
    Sec. 8094. None of the funds appropriated in title IV of 
this Act may be used to procure end-items for delivery to 
military forces for operational training, operational use or 
inventory requirements: Provided, That this restriction does 
not apply to end-items used in development, prototyping, and 
test activities preceding and leading toacceptance for 
operational use: Provided further, That this restriction does not apply 
to programs funded within the National Foreign Intelligence Program: 
Provided further, That the Secretary of Defense may waive this 
restriction on a case-by-case basis by certifying in writing to the 
Committees on Appropriations of the House of Representatives and the 
Senate that it is in the national security interest to do so.
    Sec. 8095. The budget of the President for fiscal year 2000 
submitted to Congress pursuant to section 1105 of title 31, 
United States Code, and each annual budget request thereafter, 
shall include budget activity groups (known as 
``subactivities'') in all appropriations accounts provided in 
this Act, as may be necessary, to separately identify all costs 
incurred by the Department of Defense to support the North 
Atlantic Treaty Organization and all Partnership For Peace 
programs and initiatives. The budget justification materials 
submitted to Congress in support of the budget of the 
Department of Defense for fiscal year 2000, and subsequent 
fiscal years, shall provide complete, detailed estimates for 
all such costs.
    Sec. 8096. None of the funds made available in this Act may 
be obligated or expended to enter into or renew a contract with 
a contractor that is subject to the reporting requirement set 
forth in subsection (d) of section 4212 of title 38, United 
States Code, but has not submitted the most recent report 
required by such subsection for 1998 or a subsequent year.
    Sec. 8097. None of the funds made available in this Act may 
be used to approve or license the sale of the F-22 advanced 
tactical fighter to any foreign government.
    Sec. 8098. None of the funds appropriated or otherwise made 
available by this Act may be made available for the United 
States Man and the Biosphere Program, or related projects.
    Sec. 8099. (a) The Secretary of Defense may, on a case-by-
case basis, waive with respect to a foreign country each 
limitation on the procurement of defense items from foreign 
sources provided in law if the Secretary determines that the 
application of the limitation with respect to that country 
would invalidate cooperative programs entered into between the 
Department of Defense and the foreign country, or would 
invalidate reciprocal trade agreements for the procurement of 
defense items entered into under section 2531 of title 10, 
United States Code, and the country does not discriminate 
against the same or similar defense items produced in the 
United States for that country.
    (b) Subsection (a) applies with respect to--
            (1) contracts and subcontracts entered into on or 
        after the date of the enactment of this Act; and
            (2) options for the procurement of items that are 
        exercised after such date under contracts that are 
        entered into before such date if the option prices are 
        adjusted for any reason other than the application of a 
        waiver granted under subsection (a).
    (c) Subsection (a) does not apply to a limitation regarding 
construction of public vessels, ball and roller bearings, food, 
and clothing or textile materials as defined by section 11 
(chapters 50-65) of the Harmonized Tariff Schedule and products 
classified under headings 4010, 4202, 4203, 6401 through 6406, 
6505, 7019, 7218 through 7229, 7304.41 through 7304.49, 
7306.40, 7502 through 7508, 8105, 8108, 8109, 8211, 8215, and 
9404.
    Sec. 8100. Notwithstanding 31 U.S.C. 1552(a), of the funds 
provided in Department of Defense Appropriations Acts, not more 
than the specified amounts from the following accounts shall 
remain available for the payment of satellite on-orbit 
incentive fees until the fees are paid:
            ``Missile Procurement, Air Force, 1995/1997'', 
        $20,978,000; and
            ``Missile Procurement, Air Force, 1996/1998'', 
        $16,782,400.
    Sec. 8101. None of the funds in this Act may be used by the 
National Imagery and Mapping Agency for mapping, charting, and 
geodesy activities unless contracts for such services are 
awarded in accordance with the qualifications based selection 
process in 40 U.S.C. 541 et seq. and 10 U.S.C. 2855: Provided, 
That such agency may continue to fund existing contracts for 
such services for not more than 180 days from the date of 
enactment of this Act: Provided further, That an exception 
shall be provided for such services that are critical to 
national security after a written notification has been 
submitted by the Deputy Secretary of Defense to the Committees 
on Appropriations of the House of Representatives and the 
Senate.
    Sec. 8102. Funds made available to the Civil Air Patrol in 
this Act under the heading ``Drug Interdiction and Counter-Drug 
Activities, Defense'' may be used for the Civil Air Patrol 
Corporation's counterdrug program, including its demand 
reduction program involving youth programs, as well as 
operational and training drug reconnaissance missions for 
federal, state and local government agencies; for 
administrative costs, including the hiring of Civil Air Patrol 
Corporation employees; for travel and per diem expenses of 
Civil Air Patrol Corporation personnel in support of those 
missions; and for equipment needed for mission support or 
performance: Provided, That of these funds, $300,000 shall be 
made available to establish and operate a distance learning 
program: Provided further, That the Department of the Air Force 
should waive reimbursement from the Federal, State and local 
government agencies for the use of these funds.
    Sec. 8103. During fiscal year 1999, advance billing for 
services provided or work performed by the Working Capital Fund 
activities of the Department of the Air Force in excess of 
$100,000,000 is prohibited.
    Sec. 8104. The Secretary of Defense shall undertake a 
review of all distributed learning education and training 
programs in the Department of Defense and shall issue a plan to 
implement a department-wide, standardized, cost-effective 
Advanced Distributed Learning framework to achieve the goals of 
commonality, interoperability, and reuse: Provided, That the 
Secretary shall report to Congress on the results of this 
review and present a detailed implementation and budget plan no 
later than July 30, 1999.
    Sec. 8105. Notwithstanding any other provision in this Act, 
the total amount appropriated in title II is hereby reduced by 
$70,000,000 to reflect savings resulting from consolidations 
and personnel reductions as mandated in the Defense Reform 
Initiative.
    Sec. 8106. The Secretary of Defense shall submit to the 
congressional defense committees an in-depth analysis comparing 
the cost of any proposed establishment or expansion of depot 
facilities by the Reserve Components to the cost of performing 
the same work at existing depot facilities or by the private 
sector: Provided, That for purposes of this section, the term 
``depot level maintenance'' does not include General Support 
Level maintenance activities, Intermediate Level maintenance 
activities, or lower echelon maintenance activities.
    Sec. 8107. Notwithstanding any other provision of law, the 
TRICARE managed care support contracts in effect, or in final 
stages of acquisition as of September 30, 1998, may be extended 
for two years: Provided, That any such extension may only take 
place if the Secretary of Defense determines that it is in the 
best interest of the government: Provided further, That any 
contract extension shall be based on the price in the final 
best and final offer for the last year of the existing contract 
as adjusted for inflation and other factors mutually agreed to 
by the contractor and the government: Provided further, That 
notwithstanding any other provision of law, all future TRICARE 
managed care support contracts replacing contracts in effect, 
or in the final stages of acquisition as of September 30, 1998, 
may include a base contract period for transition and up to 
seven one-year option periods.
    Sec. 8108. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$400,600,000 to reflect savings from revised economic 
assumptions, to be distributed as follows:
            ``Operation and Maintenance, Army'', $24,000,000;
            ``Operation and Maintenance, Navy'', $32,000,000;
            ``Operation and Maintenance, Marine Corps'', 
        $4,000,000;
            ``Operation and Maintenance, Air Force'', 
        $31,000,000;
            ``Operation and Maintenance, Defense-Wide'', 
        $17,600,000;
            ``Operation and Maintenance, Army Reserve'', 
        $2,000,000;
            ``Operation and Maintenance, Navy Reserve'', 
        $2,000,000;
            ``Operation and Maintenance, Air Force Reserve'', 
        $2,000,000;
            ``Operation and Maintenance, Army National Guard'', 
        $4,000,000;
            ``Operation and Maintenance, Air National Guard'', 
        $4,000,000;
            ``Drug Interdiction and Counter-Drug Activities, 
        Defense'', $2,000,000;
            ``Environmental Restoration, Army'', $1,000,000;
            ``Environmental Restoration, Navy'', $1,000,000;
            ``Environmental Restoration, Air Force'', 
        $1,000,000;
            ``Environmental Restoration, Defense-Wide'', 
        $1,000,000;
            ``Defense Health Program'', $36,000,000;
            ``Aircraft Procurement, Army'', $4,000,000;
            ``Missile Procurement, Army'', $4,000,000;
            ``Procurement of Weapons and Tracked Combat 
        Vehicles, Army'', $4,000,000;
            ``Procurement of Ammunition, Army'', $3,000,000;
            ``Other Procurement, Army'', $9,000,000;
            ``Aircraft Procurement, Navy'', $22,000,000;
            ``Weapons Procurement, Navy'', $4,000,000;
            ``Procurement of Ammunition, Navy and Marine 
        Corps'', $1,000,000;
            ``Shipbuilding and Conversion, Navy'', $18,000,000;
            ``Other Procurement, Navy'', $12,000,000;
            ``Procurement, Marine Corps'', $2,000,000;
            ``Aircraft Procurement, Air Force'', $23,000,000;
            ``Missile Procurement, Air Force'', $7,000,000;
            ``Procurement of Ammunition, Air Force'', 
        $1,000,000;
            ``Other Procurement, Air Force'', $17,500,000;
            ``Procurement, Defense-Wide'', $5,800,000;
            ``Chemical Agents and Munitions Destruction, 
        Army'', $3,000,000;
            ``Research, Development, Test and Evaluation, 
        Army'', $10,000,000;
            ``Research, Development, Test and Evaluation, 
        Navy'', $20,000,000;
            ``Research, Development, Test and Evaluation, Air 
        Force'', $39,000,000; and
            ``Research, Development, Test and Evaluation, 
        Defense-Wide'', $26,700,000:
Provided, That these reductions shall be applied proportionally 
to each budget activity, activity group and subactivity group 
and each program, project, and activity within each 
appropriation account.
    Sec. 8109. (a) Disposal of Certain Materials in National 
Defense Stockpile.--Subject to subsection (c), the President 
shall dispose of materials contained in the National Defense 
Stockpile and specified in the table in subsection (b) so as to 
result in receipts to the United States in the amount of 
$100,000,000 by the end of fiscal year 1999.
    (b) Disposal Quantities.--The total quantities of materials 
authorized for disposal by the President under subsection (a) 
may not exceed the amounts set forth in the following table:

                     AUTHORIZED STOCKPILE DISPOSALS
------------------------------------------------------------------------
           Material for disposal                      Quantity
------------------------------------------------------------------------
Beryllium Metal...........................  20 short tons
Chromium Ferroalloy.......................  25,000 short tons
Columbium Carbide Powder..................  21,372 pounds of contained
                                             Columbium
Diamond, Stones...........................  600,000 carats
Platinum..................................  100,000 troy ounces
Platinum--Palladium.......................  150,000 troy ounces
Tantalum Carbide Powder...................  22,688 pounds of contained
                                             Tantalum
Tantalum Metal Ingots.....................  25,000 pounds of contained
                                             Tantalum
Tantalum Metal Powder.....................  25,000 pounds of contained
                                             Tantalum
------------------------------------------------------------------------

    (c) Minimization of Disruption and Loss.--The President may 
not dispose of materials 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 the materials 
        proposed for disposal; 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 a result of the disposal of 
materials authorized for disposal under subsection (a) shall be 
deposited into the general fund of the Treasury.
    (e) Relationship to Other Disposal Authority.--(1) 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 the 
materials specified in such subsection.
    (2) The disposal authority provided in subsection (a) is 
referred to in section 3303 of the National Defense 
Authorization Act for Fiscal Year 1999, and the quantities of 
the materials specified in the table in subsection (b) are 
included in the quantities specified in the table in subsection 
(b) of such section 3303.
    (f) Definition.--In this section, 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).
    Sec. 8110. (a) Transfers of Vessels by Grant.--The 
Secretary of the Navy is authorized to transfer vessels to 
foreign countries on a grant basis under section 516 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:
            (1) To the Government of Argentina, the NEWPORT 
        class tank landing ship NEWPORT (LST 1179).
            (2) To the Government of Greece--
                    (A) the KNOX class frigate HEPBURN (FF 
                1055); and
                    (B) the ADAMS class guided missile 
                destroyers STRAUSS (DDG 16), SEMMS (DDG 18), 
                and WADDELL (DDG 24).
            (3) To the Government of Portugal, the STALWART 
        class ocean surveillance ship ASSURANCE (T-AGOS 5).
            (4) To the Government of Turkey, the KNOX class 
        frigates PAUL (FF 1080), MILLER (FF 1091), and W.S. 
        SIMMS (FF 1059).
    (b) Transfers of Vessels by Sale.--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 NEWPORT class 
        tank landing ships CAYUGA (LST 1186) and PEORIA (LST 
        1183).
            (2) To the Government of Chile--
                    (A) the NEWPORT class tank landing ship SAN 
                BERNARDINO (LST 1189); and
                    (B) the auxiliary repair dry dock WATERFORD 
                (ARD 5).
            (3) To the Government of Greece--
                    (A) the OAK RIDGE class medium dry dock 
                ALAMAGORDO (ARDM 2); and
                    (B) the KNOX class frigates VREELAND (FF 
                1068) and TRIPPE (FF 1075).
            (4) To the Government of Mexico--
                    (A) the auxiliary repair dock SAN ONOFRE 
                (ARD 30); and
                    (B) the KNOX class frigate PHARRIS (FF 
                1094).
            (5) To the Government of the Philippines, the 
        STALWART class ocean surveillance ship TRIUMPH (T-AGOS 
        4).
            (6) To the Government of Spain, the NEWPORT class 
        tank landing ships HARLAN COUNTY (LST 1196) and 
        BARNSTABLE COUNTY (LST 1197).
            (7) To the Taipai 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)--
                    (A) the KNOX class frigates PEARY (FF 
                1073), JOSEPH HEWES (FF 1078), COOK (FF 1083), 
                BREWTON (FF 1086), KIRK (FF 1987), and BARBEY 
                (FF 1088);
                    (B) the NEWPORT class tank landing ships 
                MANITOWOC (LST 1180) and SUMTER (LST 1181);
                    (C) the floating dry dock COMPETENT (AFDM 
                6); and
                    (D) the ANCHORAGE class dock landing ship 
                PENSACOLA (LSD 38).
            (8) To the Government of Turkey--
                    (A) the OLIVER HAZARD PERRY class guided 
                missile frigates MAHLON S. TISDALE (FFG 27), 
                REID (FFG 30), and DUNCAN (FFG 10); and
                    (B) the KNOX class frigates REASONER (FF 
                1063), FANNING (FF 1076), BOWEN (FF 1079), 
                MCCANDLESS (FF 1084), DONALD BEARY (FF 1085), 
                AINSWORTH (FF 1090), THOMAS C. HART (FF 1092), 
                and CAPODANNO (FF 1093).
            (9) To the Government of Venezuela, the medium 
        auxiliary floating dry dock bearing hull number AFDM 2.
    (c) Transfers of Vessels on a Combined Lease-Sale Basis.--
The Secretary of the Navy is authorized to transfer vessels to 
foreign countries on a combined lease-sale basis under sections 
61 and 21 of the Arms Export Control Act (22 U.S.C. 2796, 2761) 
and in accordance with subsection (d) as follows:
            (1) To the Government of Brazil, the CIMARRON class 
        oiler MERRIMACK (AO 179).
            (2) To the Government of Greece, the KIDD class 
        guided missile destroyers KIDD (DDG 993), CALLAGHAN 
        (DDG 994), SCOTT (DDG 995), and CHANDLER (DDG 996).
    (d) Conditions Relating To Combined Lease-Sale Transfers.--
A transfer of a vessel on a combined lease-sale basis 
authorized by subsection (c) shall be made in accordance with 
the following requirements:
            (1) The Secretary may initially transfer the vessel 
        by lease, with lease payments suspended for the term of 
        the lease, if the country entering into the lease for 
        the vessel simultaneously enters into a foreign 
        military sales agreement for the transfer of title to 
        the vessel.
            (2) The Secretary may not deliver to the purchasing 
        country title to the vessel until the purchase price of 
        the vessel under such a foreign military sales 
        agreement is paid in full.
            (3) Upon payment of the purchase price in full 
        under such a sales agreement and delivery of title to 
        the recipient country, the Secretary shall terminate 
        the lease.
            (4) If the purchasing country fails to make full 
        payment of the purchase price in accordance with the 
        sales agreement by the date required under the sales 
        agreement--
                    (A) the sales agreement shall be 
                immediately terminated;
                    (B) the suspension of lease payments under 
                the lease shall be vacated; and
                    (C) the United States shall be entitled to 
                retain all funds received on or before the date 
                of the termination under the sales agreement, 
                up to the amount of the lease payments due and 
                payable under the lease and all other costs 
                required by the lease to be paid to that date.
            (5) If a sales agreement is terminated pursuant to 
        paragraph (4), the United States shall not be required 
        to pay any interest to the recipient country on any 
        amount paid to the United States by the recipient 
        country under the sales agreement and not retained by 
        the United States under the lease.
    (e) Funding for Certain Costs of Transfers.--There is 
established in the Treasury of the United States a special 
account to be known as the Defense Vessels Transfer Program 
Account. There is hereby appropriated into that account such 
sums as may be necessary for the costs (as defined in section 
502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of 
the lease-sale transfers authorized by subsection (c). Funds in 
that account are available only for the purpose of covering 
those costs.
    (f) Notification of Congress.--Not later than 30 days after 
the date of the enactment of this Act, the Secretary of the 
Navy shall submit to Congress, for each naval vessel that is to 
be transferred under this section before January 1, 1999, the 
notifications required under section 516 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2321j) and section 525 of the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1998 (Public Law 105-118; 111 Stat. 2413).
    (g) Grants not Counted in Annual Total of Transferred 
Excess Defense Articles.--The value of a vessel transferred to 
another country on a grant basis under section 516 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to 
authority provided by subsection (a) shall not be counted for 
the purposes of subsection (g) of that section in the aggregate 
value of excess defense articles transferred to countries under 
that section in any fiscal year.
    (h) Costs of Transfers.--Any expense incurred by the United 
States in connection with a transfer authorized by this section 
shall be charged to the recipient (notwithstanding section 
516(e)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j(e)(1)) in the case of a transfer authorized to be made on 
a grant basis under subsection (a)).
    (i) 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.
    (j) Expiration of Authority.--The authority to transfer a 
vessel under this section shall expire at the end of the two-
year period beginning on the date of the enactment of this Act.
    Sec. 8111. None of the funds in this Act may be used to 
compensate an employee of the Department of Defense who 
initiates a new start program without notification to the 
Office of the Secretary of Defense and the congressional 
defense committees, as required by Department of Defense 
financial management regulations.
    Sec. 8112. None of the funds made available by this Act 
shall be used by the Army to reduce civilian personnel 
workforce levels at United States Army, Pacific (USARPAC) bases 
and at Major Range and Test Facility Bases (MRTFBs) in the 
United States in fiscal year 1999 below levels assumed in this 
Act unless the Secretary of the Army notifies the Congressional 
defense committees not less than 30 days prior to 
implementation of any civilian personnel workforce reductions.


                     (including transfer of funds)


    Sec. 8113. Of the funds made available under title II of 
this Act, the following amounts shall be transferred to the 
Defense Working Capital Funds for the purpose of funding 
operations of the Defense Commissary Agency:
            ``Operation and Maintenance, Army'', $338,400,000;
            ``Operation and Maintenance, Navy'', $255,000,000;
            ``Operation and Maintenance, Marine Corps'', 
        $86,600,000; and
            ``Operation and Maintenance, Air Force'', 
        $302,071,000:

Provided, That the transfer authority provided in this section 
is in addition to any other transfer authority contained 
elsewhere in this Act.
    Sec. 8114. Of the amounts made available in title II of 
this Act under the heading ``Operation and Maintenance, Navy'', 
$20,000,000 is available only for emergency and extraordinary 
expenses associated with the accident involving a United States 
Marine Corps A-6 aircraft on February 3, 1998, near Cavalese, 
Italy: Provided, That these funds shall remain available until 
expended: Provided further, That notwithstanding any other 
provision of law, the funds made available by this section may 
be available for payments to persons, communities, or other 
entities in Italy for reimbursement for property damages 
resulting from the accident involving a United States Marine 
Corps A-6 aircraft on February 3, 1998, near Cavalese, Italy: 
Provided further, That notwithstanding any other provision of 
law, funds made available under this section may be used to 
rebuild or replace the funicular system in Cavalese destroyed 
on February 3, 1998 by that aircraft: Provided further, That 
any amount paid to any individual or entity from the amount 
appropriated under this section shall be credited against any 
amount subsequently determined to be payable to that individual 
or entity under chapter 163 of title 10, United States Code, 
section 127 of that title, or any other authority provided by 
law for administrative settlement of claims against the United 
States with respect to damages arising from the accident 
described in this section: Provided further, That payment of an 
amount under this section shall not be considered to constitute 
a statement of legal liability on the part of the United States 
or otherwise to prejudge any judicial proceeding or 
investigation arising from the accident described in this 
section: Provided further, That no part of any payment 
authorized by this section shall be paid to or received by 
agents or attorneys for services rendered in connection with 
obtaining such payment, any contract to the contrary 
notwithstanding.
    Sec. 8115. (a) None of the funds appropriated or otherwise 
made available under this Act may be obligated or expended for 
any additional deployment of forces of the Armed Forces of the 
United States to Yugoslavia, Albania, or Macedonia unless and 
until the President, after consultation with the Speaker of the 
House of Representatives, the Majority Leader of the Senate, 
the Minority Leader of the House of Representatives, and the 
Minority Leader of the Senate, transmits to Congress a report 
on the deployment that includes the following:
            (1) The President's certification that the presence 
        of those forces in each country to which the forces are 
        to be deployed is necessary in the national security 
        interests of the United States.
            (2) The reasons why the deployment is in the 
        national security interests of the United States.
            (3) The number of United States military personnel 
        to be deployed to each country.
            (4) The mission and objectives of forces to be 
        deployed.
            (5) The expected schedule for accomplishing the 
        objectives of the deployment.
            (6) The exit strategy for United States forces 
        engaged in the deployment.
            (7) The costs associated with the deployment and 
        the funding sources for paying those costs.
            (8) The anticipated effects of the deployment on 
        the morale, retention, and effectiveness of United 
        States forces.
    (b) Subsection (a) does not apply to a deployment of 
forces--
            (1) in accordance with United Nations Security 
        Council Resolution 795; or
            (2) under circumstances determined by the President 
        to be an emergency necessitating immediate deployment 
        of the forces.
    (c) 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.
    Sec. 8116. (a) Ensuring Year 2000 Compliance of Information 
Technology and National Security Systems.--None of the funds 
appropriated or otherwise made available by this Act may 
(except as provided in subsection (b)) be obligated or expended 
on the development or modernization of any information 
technology or national security system of the Department of 
Defense in use by the Department of Defense (whether or not the 
system is a mission critical system) if the date-related data 
processing capability of that system does not meet 
certification level 1a, 1b, or 2 (as prescribed in the April 
1997 publication of the Department of Defense entitled ``Year 
2000 Management Plan'').
    (b) Exception for Certain Information Technology and 
National Security Systems.--The limitation in subsection (a) 
does not apply to an obligation or expenditure for an 
information technology or national security system that is 
reported to the Office of the Secretary of Defense by October 
1, 1998, in accordance with the preparation instructions for 
the May 1998 Department of Defense quarterly report on the 
status of year 2000 compliance, if--
            (1) the obligation or expenditure is directly 
        related to ensuring that the reported system achieves 
        year 2000 compliance;
            (2) the system is being developed and fielded to 
        replace, before January 1, 2000, a noncompliant system 
        or a system to be terminated in accordance with the May 
        1998 Department of Defense quarterly report on the 
        status of year 2000 compliance; or
            (3) the obligation or expenditure is required for a 
        particular change that is specifically required by law 
        or that is specifically directed by the Secretary of 
        Defense.
    (c) Unallocated Reductions of Funds Not To Apply to Mission 
Critical Systems.--Funds appropriated or otherwise made 
available by this Act for mission critical systems are not 
subject to any unallocated reduction of funds made by or 
otherwise applicable to funds appropriated or otherwise made 
available by this Act.
    (d) Current Services Operations Not Affected.--Subsection 
(a) does not prohibit the obligation or expenditure of funds 
for current services operations of information technology and 
national security systems.
    (e) Waiver Authority.--The Secretary of Defense may waive 
subsection (a) on a case-by-case basis with respect to an 
information technology or national security system if the 
Secretary provides the congressional defense committees with 
written notice of the waiver, including the reasons for the 
waiver and a timeline for the testing and certification of the 
system as year 2000 compliant.
    (f) Required Report.--(1) Not later than December 1, 1998, 
the Secretary of Defense shall submit to the congressional 
defense committees a report describing--
            (A) an executable strategy to be used throughout 
        the Department of Defense to test information 
        technology and national security systems for year 2000 
        compliance (to include functional capability tests and 
        military exercises);
            (B) the plans of the Department of Defense for 
        ensuring that adequate resources (such as testing 
        facilities, tools, and personnel) are available to 
        ensure that all mission critical systems achieve year 
        2000 compliance; and
            (C) the criteria and process to be used to certify 
        a system as year 2000 compliant.
    (2) The report shall also include--
            (A) an updated list of all mission critical 
        systems; and
            (B) guidelines for developing contingency plans for 
        the functioning of each information technology or 
        national security system in the event of a year 2000 
        problem in any such system.
    (g) Capability Contingency Plans.--Not later than December 
30, 1998, the Secretary of Defense shall have in place 
contingency plans to ensure continuity of operations for every 
critical mission or function of the Department of Defense that 
is dependent on an information technology or national security 
system.
    (h) Inspector General Evaluation.--The Inspector General of 
the Department of Defense shall selectively audit information 
technology and national security systems certified as year 2000 
compliant to evaluate the ability of systems to successfully 
operate during the actual year 2000, including the ability of 
the systems to access and transmit information from point of 
origin to point of termination.
    (i) Definitions.--For purposes of this section:
            (1) The term ``information technology'' has the 
        meaning given that term in section 5002 of the Clinger-
        Cohen Act of 1996 (40 U.S.C. 1401).
            (2) The term ``national security system'' has the 
        meaning given that term in section 5142 of such Act (40 
        U.S.C. 1452).
            (3) The term ``development or modernization'' has 
        the meaning given that term in paragraph E of section 
        180203 of the Department of Defense Financial 
        Management Regulation (DOD 7000.14-R), but does not 
        include any matter covered by subparagraph 3 of that 
        paragraph.
            (4) The term ``current services'' has the meaning 
        given that term in paragraph C of section 180203 of the 
        Department of Defense Financial Management Regulation 
        (DOD 7000.14-R).
            (5) The term ``mission critical system'' means an 
        information technology or national security system that 
        is designated as mission critical in the May 1998 
        Department of Defense quarterly report on the status of 
        year 2000 compliance.
    Sec. 8117. (a) Evaluation of Year 2000 Compliance as Part 
of Training Exercises Programs.--Not later than December 15, 
1998, the Secretary of Defense shall submit to Congress a plan 
for the execution of a simulated year 2000 as part of military 
exercises described in subsection (c) in order to evaluate, in 
an operational environment, the extent to which information 
technology and national security systems involved in those 
exercises will successfully operate during the actual year 
2000, including the ability of those systems to access and 
transmit information from point of origin to point of 
termination.
    (b) Evaluation of Compliance in Selected Exercises.--In 
conducting the military exercises described in subsection (c), 
the Secretary of Defense shall ensure that--
            (1) at least 25 of those exercises (referred to in 
        this section as ``year 2000 simulation exercises'') are 
        conducted so as to include a simulated year 2000 in 
        accordance with the plan submitted under subsection 
        (a);
            (2) at least two of those exercises are conducted 
        by the commander of each unified or specified combatant 
        command; and
            (3) all mission critical systems that are expected 
        to be used if the Armed Forces are involved in a 
        conflict in a major theater of war are tested in at 
        least two exercises.
    (c) Covered Military Exercises.--A military exercise 
referred to in this section is a military exercise conducted by 
the Department of Defense, during the period beginning on 
January 1, 1999, and ending on September 30, 1999--
            (1) under the training exercises program known as 
        the ``CJCS Exercise Program'';
            (2) at the Naval Strike and Air Warfare Center, the 
        Army National Training Center, or the Air Force Air 
        Warfare Center; or
            (3) as part of Naval Carrier Group fleet training 
        or Marine Corps Expeditionary Unit training.
    (d) Alternative Testing Method.--In the case of an 
information technology or national security system for which a 
simulated year 2000 test as part of a military exercise 
described in subsection (c) is not feasible or presents undue 
risk, the Secretary of Defense shall test the system using a 
functional end-to-end test or through a Defense Major Range and 
Test Facility Base. The Secretary shall include the plans for 
these tests in the plan required by subsection (a). Tests under 
this subsection are in addition to the 25 tests required by 
subsection (b).
    (e) Authority for Exclusion of Systems Not Capable of 
Performing Reliably in Year 2000 Simulation.--(1) In carrying 
out a year 2000 simulation exercise, the Secretary of Defense 
may exclude a particular information technology or national 
security system from the year 2000 simulation phase of the 
exercise if the Secretary determines that the system would be 
incapable of performing reliably during the year 2000 
simulation phase of the exercise. In such a case, the system 
excluded shall be replaced in accordance with the year 2000 
contingency plan for the system.
    (2) If the Secretary of Defense excludes an information 
technology or national security system from the year 2000 
simulation phase of an exercise as provided in paragraph (1), 
the Secretary shall notify Congress of that exclusion not later 
than two weeks before commencing that exercise. The notice 
shall include a list of each information technology or national 
security system excluded from the exercise, a description of 
how the exercise will use the year 2000 contingency plan for 
each such system, and a description of the effect that 
continued year 2000 noncompliance of each such system would 
have on military readiness.
    (3) An information technology or national security system 
with cryptological applications that is not capable of having 
its internal clock adjusted forward to a simulated later time 
is exempt from the year 2000 simulation phase of an exercise 
under this section.
    (f) Comptroller General Review.--Not later than January 30, 
1999, the Comptroller General shall review the report and plan 
submitted under subsection (a) and submit to Congress a 
briefing evaluating the methodology to be used under the plan 
to simulate the year 2000 and describing the potential 
information that will be collected as a result of 
implementation of the plan, the adequacy of the planned tests, 
and the impact that the plan will have on military readiness.
    (g) Definitions.--For the purposes of this section:
            (1) The term ``information technology'' has the 
        meaning given that term in section 5002 of the Clinger-
        Cohen Act of 1996 (40 U.S.C. 1401).
            (2) The term ``national security system'' has the 
        meaning given that term in section 5142 of such Act (40 
        U.S.C. 1452).
            (3) The term ``mission critical system'' means an 
        information technology or national security system that 
        is designated as mission critical in the May 1998 
        Department of Defense quarterly report on the status of 
        year 2000 compliance.
    Sec. 8118. During the current fiscal year and hereafter, no 
funds appropriated or otherwise available to the Department of 
Defense may be used to award a contract to, extend a contract 
with, or approve the award of a subcontract to any person who 
within the preceding 15 years has been convicted under section 
704 of title 18, United States Code, of the unlawful 
manufacture or sale of the Congressional Medal of Honor.
    Sec. 8119. (a) The Secretary of Defense shall submit to the 
Committees on Appropriations of the Senate and the House of 
Representatives a report on food stamp assistance for members 
of the Armed Forces. The Secretary shall submit the report at 
the same time that the Secretary submits to Congress, in 
support of the fiscal year 2001 budget, the materials that 
relate to the funding provided in that budget for the 
Department of Defense.
    (b) The report shall include the following:
            (1) The number of members of the Armed Forces and 
        dependents of members of the Armed Forces who are 
        eligible for food stamps.
            (2) The number of members of the Armed Forces and 
        dependents of members of the Armed Forces who received 
        food stamps in fiscal year 1998.
            (3) A proposal for using, as a means for 
        eliminating or reducing significantly the need of such 
        personnel for food stamps, the authority under section 
        2828 of title 10, United States Code, to lease housing 
        facilities for enlisted members of the Armed Forces and 
        their families when Government quarters are not 
        available for such personnel.
            (4) A proposal for increased locality adjustments 
        through the basic allowance for housing and other 
        methods as a means for eliminating or reducing 
        significantly the need of such personnel for food 
        stamps.
            (5) Other potential alternative actions (including 
        any recommended legislation) for eliminating or 
        reducing significantly the need of such personnel for 
        food stamps.
            (6) A discussion of the potential for each 
        alternative action referred to in paragraph (3) or (4) 
        to result in the elimination or a significant reduction 
        in the need of such personnel for food stamps.
    (c) Each potential alternative action included in the 
report under paragraph (3) or (4) of subsection (b) shall meet 
the following requirements:
            (1) Apply only to persons referred to in paragraph 
        (1) of such subsection.
            (2) Be limited in cost to the lowest amount 
        feasible to achieve the objectives.
    (d) In this section:
            (1) The term ``fiscal year 2001 budget'' means the 
        budget for fiscal year 2001 that the President submits 
        to Congress under section 1105(a) of title 31, United 
        States Code.
            (2) The term ``food stamps'' means assistance under 
        the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
    Sec. 8120. None of the funds appropriated or otherwise made 
available by this Act in Titles III and IV may be used to enter 
into or renew a contract with any company owned, or partially 
owned, by the People's Republic of China or the People's 
Liberation Army of the People's Republic of China.
    Sec. 8121. (a) Chapter 157 of title 10, United States Code, 
is amended by inserting after section 2641 the following:

``Sec. 2641a. Transportation of American Samoa veterans on Department 
                    of Defense aircraft for certain medical care in 
                    Hawaii

    ``(a) Transportation Authorized.--The Secretary of Defense 
may provide transportation on Department of Defense aircraft 
for the purpose of transporting any veteran specified in 
subsection (b) between American Samoa and the State of Hawaii 
if such transportation is required in order to provide hospital 
care to such veteran as described in that subsection.
    ``(b) Veterans Eligible for Transport.--A veteran eligible 
for transport under subsection (a) is any veteran who--
            ``(1) resides in and is located in American Samoa; 
        and
            ``(2) as determined by an official of the 
        Department of Veterans Affairs designated for that 
        purpose by the Secretary of Veterans Affairs, must be 
        transported to the State of Hawaii in order to receive 
        hospital care to which such veteran is entitled under 
        chapter 17 of title 38 in facilities of such Department 
        in the State of Hawaii.
    ``(c) Administration.--(1) Transportation may be provided 
to veterans under this section only on a space-available basis.
    ``(2) A charge may not be imposed on a veteran for 
transportation provided to the veteran under this section.
    ``(d) Definitions.--In this section:
            ``(1) The term `veteran' has the meaning given that 
        term in section 101(2) of title 38.
            ``(2) The term `hospital care' has the meaning 
        given that term in section 1701(5) of title 38.''.
    (b) The table of sections at the beginning of chapter 157 
of such title is amended by inserting after the item relating 
to section 2641 the following new item:

``2641a. Transportation of American Samoa veterans on Department of 
          Defense aircraft for certain medical care in Hawaii.''.

    Sec. 8122. Additional Funding for Korean War Veterans 
Memorial. Section 3 of Public Law 99-572 (40 U.S.C. 1003 note) 
is amended by adding at the end the following:
    ``(c) Additional Funding.--
            ``(1) In general.--In addition to amounts made 
        available under subsections (a) and (b), theSecretary 
of the Army may expend, from any funds available to the Secretary on 
the date of enactment of this paragraph, $2,000,000 for repair of the 
memorial.
            ``(2) Disposition of funds received from claims.--
        Any funds received by the Secretary of the Army as a 
        result of any claim against a contractor in connection 
        with construction of the memorial shall be deposited in 
        the general fund of the Treasury.''.
    Sec. 8123. Of the funds available under title VI for 
``Chemical Agents and Munitions Destruction, Army'' for 
research and development, $18,000,000 shall be made available 
for the program manager for the Assembled Chemical Weapons 
Assessment (under section 8065 of the Department of Defense 
Appropriations Act, 1997) for demonstrations of technologies 
under the Assembled Chemical Weapons Assessment, for planning 
and preparation to proceed from demonstration of an alternative 
technology immediately into the development of a pilot-scale 
facility for the technology, and for the design, construction, 
and operation of a pilot facility for the technology.
    Sec. 8124. The Secretary of the Navy may carry out a 
competitively awarded vessel scrapping pilot program during 
fiscal years 1999 and 2000 using funds made available in this 
Act under the heading ``Operation and Maintenance, Navy'': 
Provided, That the Secretary of the Navy shall define the 
program scope sufficient to gather data on the cost of 
scrapping Government vessels and to demonstrate cost effective 
technologies and techniques to scrap such vessels in a manner 
that is protective of worker safety and health and the 
environment.
    Sec. 8125. From within the funds provided under the heading 
``Operation and Maintenance, Army'', up to $500,000 shall be 
available for paying subcontractors and suppliers for work 
performed at Fort Wainwright, Alaska, in 1994, under Army 
services contract number DACA85-93-C-0065. Subcontractors and 
suppliers are to be paid interest calculated in accordance with 
the Contract Dispute Act of 1978, 41 U.S.C. 601-613.
    Sec. 8126. (a) The Secretary of the Army and the Secretary 
of the Air Force may each enter into one or more multiyear 
leases of nontactical firefighting equipment, nontactical crash 
rescue equipment, or nontactical snow removal equipment. The 
period of a lease entered into under this section shall be for 
any period not in excess of 10 years. Any such lease shall 
provide that performance under the lease during the second and 
subsequent years of the contract is contingent upon the 
appropriation of funds and shall provide for a cancellation 
payment to be made to the lessor if such appropriations are not 
made.
    (b) Lease payments made under subsection (a) shall be made 
from amounts provided in this or future appropriations Acts.
    (c) This section is effective for all fiscal years 
beginning after September 30, 1998.
    Sec. 8127. From within funds available for the Department 
of Defense under title VI of this Act for ``Chemical Agents and 
Munitions Destruction, Army'', or the unobligated balances of 
funds available for ``Chemical Agents and Munitions 
Destruction, Defense'', under any other Act making 
appropriations for military functions administered by the 
Department of Defense for any fiscal year, the Secretary of 
Defense may use not more than $25,000,000 for the Assembled 
Chemical Weapons Assessment to complete the demonstration of 
alternatives to baseline incineration for the destruction of 
chemical agents and munitions and to carry out the pilot 
program under section 8065 of the Department of Defense 
Appropriations Act, 1997 (section 101(b) of Public Law 104-208; 
110 Stat. 3009-101; 50 U.S.C. 1521 note). The amount specified 
in the preceding sentence is in addition to any other amount 
that is made available under title VI of this Act to complete 
the demonstration of the alternatives and to carry out the 
pilot program: Provided, Thatnone of these funds shall be taken 
from any ongoing operational chemical munitions destruction programs.
    Sec. 8128. (a) Findings.--The Congress finds that--
            (1) child experts estimate that as many as 250,000 
        children under the age of 18 are currently serving in 
        armed forces or armed groups in more than 30 countries 
        around the world;
            (2) contemporary armed conflict has caused the 
        deaths of 2,000,000 minors in the last decade alone, 
        and has left an estimated 6,000,000 children seriously 
        injured or permanently disabled;
            (3) children are uniquely vulnerable to military 
        recruitment because of their emotional and physical 
        immaturity, are easily manipulated, and can be drawn 
        into violence that they are too young to resist or 
        understand;
            (4) children are most likely to become child 
        soldiers if they are poor, separated from their 
        families, displaced from their homes, living in a 
        combat zone, or have limited access to education;
            (5) orphans and refugees are particularly 
        vulnerable to recruitment;
            (6) one of the most egregious examples of the use 
        of child soldiers is the abduction of some 10,000 
        children, some as young as 8 years of age, by the 
        Lord's Resistance Army (in this section referred to as 
        the ``LRA'') in northern Uganda;
            (7) the Department of State's Country Reports on 
        Human Rights Practices for 1997 reports that in Uganda 
        the LRA kills, maims, and rapes large numbers of 
        civilians, and forces abducted children into ``virtual 
        slavery as guards, concubines, and soldiers'';
            (8) children abducted by the LRA are forced to raid 
        and loot villages, fight in the front line of battle 
        against the Ugandan army and the Sudan People's 
        Liberation Army (SPLA), serve as sexual slaves to rebel 
        commanders, and participate in the killing of other 
        children who try to escape;
            (9) former LRA child captives report witnessing 
        Sudanese government soldiers delivering food supplies, 
        vehicles, ammunition, and arms to LRA base camps in 
        government-controlled southern Sudan;
            (10) children who manage to escape from LRA 
        captivity have little access to trauma care and 
        rehabilitation programs, and many find their families 
        displaced, unlocatable, dead, or fearful of having 
        their children return home;
            (11) Graca Machel, the former United Nations expert 
        on the impact of armed conflict on children,identified 
the immediate demobilization of all child soldiers as an urgent 
priority, and recommended the establishment through an optional 
protocol to the Convention on the Rights of the Child of 18 as the 
minimum age for recruitment and participation in armed forces; and
            (12) the International Committee of the Red Cross, 
        the United Nations Children's Fund (UNICEF), the United 
        Nations High Commission on Refugees, and the United 
        Nations High Commissioner on Human Rights, as well as 
        many nongovernmental organizations, also support the 
        establishment of 18 as the minimum age for military 
        recruitment and participation in armed conflict.
    (b) In General.--The Congress hereby--
            (1) deplores the global use of child soldiers and 
        supports their immediate demobilization;
            (2) condemns the abduction of Ugandan children by 
        the LRA;
            (3) calls on the Government of Sudan to use its 
        influence with the LRA to secure the release of 
        abducted children and to halt further abductions; and
            (4) encourages the United States delegation not to 
        block the drafting of an optional protocol to the 
        Convention on the Rights of the Child that would 
        establish 18 as the minimum age for participation in 
        armed conflict.
    (c) Sense of the Congress.--It is the sense of the Congress 
that the President and the Secretary of State should--
            (1) support efforts to end the abduction of 
        children by the LRA, secure their release, and 
        facilitate their rehabilitation and reintegration into 
        society;
            (2) not block efforts to establish 18 as the 
        minimum age for participation in conflict through an 
        optional protocol to the Convention on the Rights of 
        the Child; and
            (3) provide greater support to United Nations 
        agencies and nongovernmental organizations working for 
        the rehabilitation and reintegration of former child 
        soldiers into society.
    Sec. 8129. Notwithstanding any other provision of law, the 
Secretary of Defense shall obligate the funds provided for 
Counterterror Technical Support in the Department of Defense 
Appropriations Act, 1998 (under title IV of Public Law 105-56) 
for the projects and in the amounts provided for in House 
Report 105-265 of the House of Representatives, One Hundred 
Fifth Congress, First Session: Provided, That the funds 
available for the Pulsed Fast Neutron Analysis Project should 
be executed through cooperation with the Office of National 
Drug Control Policy.
    Sec. 8130. Training and Other Programs. (a) Prohibition.--
None of the funds made available by this Act may be used to 
support any training program involving a unit of the security 
forces of a foreign country if the Secretary of Defense has 
received credible information from the Department of State that 
a member of such unit has committed a gross violation of human 
rights, unless all necessary corrective steps have been taken.
    (b) Monitoring.--Not more than 90 days after enactment of 
this Act, the Secretary of Defense, in consultation with the 
Secretary of State, shall establish procedures to ensure that 
prior to a decision to conduct any training program referred to 
in subsection (a), full consideration is given to all 
information available to the Department of State relating to 
human rights violations by foreign security forces.
    (c) Waiver.--The Secretary of Defense, after consultation 
with the Secretary of State, may waive the prohibition in 
subsection (a) if he determines that such waiver is required by 
extraordinary circumstances.
    (d) Report.--Not more than 15 days after the exercise of 
any waiver under subsection (c), the Secretary of Defense shall 
submit a report to the congressional defense committees 
describing the extraordinary circumstances, the purpose and 
duration of the training program, the United States forces and 
the foreign security forces involved in the training program, 
and the information relating to human rights violations that 
necessitates the waiver.
    Sec. 8131. Notwithstanding any other provision of law, and 
notwithstanding the provisions of section 509(b) of title 32, 
United States Code, of the funds made available for Civil 
Military Programs to the Department of Defense in this Act, not 
less than $62,394,000 shall be made available for the National 
Guard ChalleNGe Program.
    Sec. 8132. (a) Notwithstanding any other provision of law, 
the Secretary of the Air Force may convey, without 
consideration, to Indian tribes located in the State of Montana 
relocatable military housing units located at Malmstrom Air 
Force Base, Montana, that are excess to the needs of the Air 
Force.
    (b) Processing of Requests.--(1) The Secretary of the Air 
Force shall convey military housing units under subsection (a) 
in accordance with the requests for such units that are 
submitted to the Secretary by the Operation Walking Shield 
Program on behalf of Indian tribes located in the State of 
Montana.
    (2) The Operation Walking Shield Program shall resolve any 
conflicts among requests of Indian tribes for housing units 
under subsection (a) before submitting such requests to the 
Secretary of the Air Force under paragraph (1).
    (c) Indian Tribe Defined.--In this section, the term 
``Indian tribe'' means any recognized Indian tribe included on 
the current list published by the Secretary of the Interior 
under section 104 of the Federally Recognized Indian Tribe List 
Act of 1994 (Public Law 103-454; 108 Stat. 4792; 25 U.S.C. 
479a-1).
    Sec. 8133. (a) The Secretary of Defense, in coordination 
with the Secretary of Health and Human Services, may carry out 
a program to distribute surplus dental equipment of the 
Department of Defense, at no cost to the Department of Defense, 
to Indian health service facilities and to federally-qualified 
health centers (within the meaning of section 1905(l)(2)(B) of 
the Social Security Act (42 U.S.C. 1396d(l)(2)(B))).
    (b) Not later than March 15, 1999, the Secretary of Defense 
shall submit to Congress a report on the program, including the 
actions taken under the program.
    Sec. 8134. The total amount appropriated in Title III of 
this Act is hereby reduced by $142,100,000.
    Sec. 8135. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$193,600,000 to reflect savings from favorable foreign currency 
fluctuations, to be distributed as follows:
            ``Military Personnel, Army'', $5,300,000;
            ``Military Personnel, Navy'', $12,000,000;
            ``Military Personnel, Marine Corps'', $4,200,000;
            ``Military Personnel, Air Force'', $8,100,000;
            ``Operation and Maintenance, Army'', $111,500,000;
            ``Operation and Maintenance, Navy'', $11,500,000;
            ``Operation and Maintenance, Marine Corps'', 
        $3,300,000;
            ``Operation and Maintenance, Air Force'', 
        $26,200,000; and
            ``Operation and Maintenance, Defense-Wide'', 
        $11,500,000.
    Sec. 8136. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$502,000,000 to reflect savings from reductions in the price of 
bulk fuel, to be distributed as follows:
            ``Operation and Maintenance, Army'', $36,000,000;
            ``Operation and Maintenance, Navy'', $167,000,000;
            ``Operation and Maintenance, Marine Corps'', 
        $8,000,000;
            ``Operation and Maintenance, Air Force'', 
        $176,000,000;
            ``Operation and Maintenance, Defense-Wide'', 
        $67,000,000;
            ``Operation and Maintenance, Army Reserve'', 
        $1,400,000;
            ``Operation and Maintenance, Navy Reserve'', 
        $8,200,000;
            ``Operation and Maintenance, Air Force Reserve'', 
        $11,700,000;
            ``Operation and Maintenance, Army National Guard'', 
        $3,500,000; and
            ``Operation and Maintenance, Air National Guard'', 
        $23,200,000.
    Sec. 8137. Global Positioning System Frequency Spectrum.--
In order to guard against disruption of Global Positioning 
System services that are vital to the national security and 
economic interests of the United States, the Secretary of 
Defense shall submit to the congressional defense committees a 
report setting forth a national strategy to (a) protect the 
integrity of the Global Positioning System frequency spectrum 
against interference and disruption, (b) achieve full and 
effective use by GPS of radio frequency spectrum currently 
allocated by the International Telecommunications Union for 
transmission of satellite navigation signals, and (c) provide 
for any additional allocation of spectrum necessary for GPS 
evolution. Such report shall be submitted to the congressional 
defense committees within 120 days of enactment of this Act.
    Sec. 8138. The Secretary of Defense shall submit a report 
to Congress concurrent with submission of the fiscal year 2000 
President's budget regarding past military deployment rates and 
future deployment rate goals. Such report shall contain a 
listing of the monthly overseas deployment rates for military 
personnel of each service covering each fiscal year beginning 
with fiscal year 1989, the location and size of each 
deployment, a description of the methodology used to determine 
the deployment rates for each service, and a discussion of the 
maximum yearly deployment rates for each service that can be 
sustained on a continuous basis in non-emergency situations 
over the next five years given the resources and personnel end 
strengths contained in the Future Years Defense Plan.
    Sec. 8139. (a) Conveyance Required.--The Secretary of the 
Air Force shall convey, without consideration, to the Town of 
Newington, New Hampshire, all right, title, and interest of the 
United States in and to a parcel of real property, together 
with improvements thereon, consisting of approximately 1.3 
acres located at former Pease Air Force Base, New Hampshire, 
and known as the site of the old Stone School.
    (b) Inapplicability of Certain Disposal Authorities.--The 
Secretary shall make the conveyance required by subsection (a) 
without regard to the provisions of section 204(b) of the 
Defense Authorization Amendments and Base Closure and 
Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note).
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Secretary.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interest of the United States.
    Sec. 8140. (a) The Secretary of the Navy may lease to the 
University of Central Florida (in this section referred to as 
the ``University''), or a representative or agent of the 
University designated by the University, such portion of the 
property known as the Naval Air Warfare Center, Training 
Systems Division, Orlando, Florida, as the Secretary considers 
appropriate as a location for the establishment of a center for 
research in the fields of law enforcement, public safety, civil 
defense, and national defense.
      (b) Notwithstanding any other provision of law, the term 
of the lease under subsection (a) may not exceed 50 years.
      (c) As consideration for the lease under subsection (a), 
the University shall--
            (1) undertake and incur the cost of the planning, 
        design, and construction required to establish the 
        center referred to in that subsection; and
            (2) during the term of the lease, provide the 
        Secretary such space in the center for activities of 
        the Navy as the Secretary and the University jointly 
        consider appropriate.
      (d) The Secretary may require such additional terms and 
conditions in connection with the lease authorized by 
subsection (a) as the Secretary considers appropriate to 
protect the interest of the United States.
    Sec. 8141. (a) The Secretary of the Air Force may enter 
into an agreement to lease from the City of Phoenix, Arizona, 
the parcel of real property described in subsection (b), 
together with improvements on the property, in consideration of 
annual rent not in excess of one dollar.
    (b) The real property referred to in subsection (a) is a 
parcel, known as Auxiliary Field 3, that is located 
approximately 12 miles north of Luke Air Force Base, Arizona, 
in section 4 of township 3 north, range 1 west of the Gila and 
Salt River Base and Meridian, Maricopa County, Arizona, is 
bounded on the north by Bell Road, on the east by Litchfield 
Road, on the south by Greenway Road, and on the west by 
agricultural land, and is composed of approximately 638 acres, 
more or less, the same property that was formerly an Air Force 
training and emergency field developed during World War II.
    (c) The Secretary may require such additional terms and 
conditions in connection with the lease under subsection (a) as 
the Secretary considers appropriate to protect the interests of 
the United States.
    Sec. 8142. Notwithstanding any other provision of law, the 
Secretary of Defense may retain all or a portion of the family 
housing at Fort Buchanan, Puerto Rico, as the Secretary deems 
necessary to meet military family housing needs arising out of 
the relocation of elements of the U.S. Army South to Fort 
Buchanan.
    Sec. 8143. (a) Conveyance Authorized.--The Secretary of the 
Navy may convey to the City of Seattle, Washington (in this 
section referred to as the ``City''), all right, title, and 
interest of the United States in and to a parcel of real 
property, together with improvements thereon, consisting of 
approximately 11.82 acres, the location of the Magnolia housing 
area, Seattle, Washington, less such areas as the Secretary 
determines are required to support continued Navy family 
housing requirements.
    (b) Consideration.--As consideration for the conveyance 
under subsection (a), the City shall pay to the United States 
an amount equal to the fair market value (as determined by the 
Secretary) of the portion of the real property to be conveyed 
under subsection (a) that was not donated to the United States 
by the City. The portion of the real property to be conveyed 
under subsection (a) that was donated to the United States by 
the City will be returned to the City at no cost.
    (c) Condition.--The conveyance authorized by subsection (a) 
shall be subject to the condition that the City accept the real 
property in its condition at the time of conveyance.
    (d) Description of Property.--The exact acreage and legal 
description of the property to be conveyed for monetary 
consideration; as well as the acreage of the portion to be 
returned to the City at no cost as described in subsection (b), 
shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the City.
    (e) Use of Funds.--(1) The Secretary shall use any amounts 
paid to the Secretary under subsection (b) for Navy family 
housing purposes in the Puget Sound region. (2) If amounts 
referred to in paragraph (1) remain unexpended after the use 
for Navy family housing purposes referred to in that paragraph, 
the Secretary shall deposit such unexpended amounts in the 
account established under section 204(h) of the Federal 
Property and Administrative Services Act (40 U.S.C. 485(h)).
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.
    Sec. 8144. (a) Conveyance Authorized.--The Secretary of the 
Army may convey to the city of Reading, Pennsylvania, hereafter 
referred to as the ``City'' or to another entity designated by 
the City, all right and title, and interest of the United 
States in and to a parcel of real property (including 
improvements thereon) consisting of approximately 1.8 acres at 
the Army Reserve Center located at 1800 North 12th Street in 
Reading, Pennsylvania, for redevelopment purposes.
    (b) Consideration.--The conveyance authorized under 
subsection (a) shall be subject to the condition that the 
City--
            (1) Will pay fair market value for the property, if 
        the property is to be conveyed to or used by a business 
        enterprise.
            (2) Will obtain the property without consideration 
        if the property is to be used by a state or local 
        governmental agency.
    (c) Administrative Expenses.--In connection with the 
conveyance under subsection (a), the Secretary may accept 
amounts provided by the city or other persons to cover 
administrative expenses incurred by the Secretary in entering 
into the transaction. Amounts collected under this subsection 
(b) 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.
    (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 
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. 8145. Notwithstanding any other provision of law, 
using funds previously appropriated into the Department of 
Defense Base Closure Account 1990 established by section 
2906(a)(1) of the Department of Defense Authorization Act, 1991 
(Public Law 101-510), the Secretary of the Air Force shall 
obligate up to $7,646,000 for demolition and related 
environmental restoration of 31 buildings, possessing asbestos 
and lead-based paint, at the former Norton Air Force Base, 
California.
    Sec. 8146. Liquidity of Working-Capital Funds. (a) 
Increased Cash Balances.--The Secretary of Defense shall 
administer the working-capital funds of the Department of 
Defense during fiscal year 1999 so as to ensure that the total 
amount of the cash balances in such funds on September 30, 
1999, exceeds the total amount of the cash balances in such 
funds on September 30, 1998, by $1,300,000,000.
    (b) Actions Regarding Unbudgeted Losses.--The Under 
Secretary of Defense (Comptroller) shall take such actions 
regarding unbudgeted losses for the working-capital funds as 
may be necessary in order to ensure that such unbudgeted losses 
do not preclude the Secretary of Defense from achieving the 
increase in cash balances in working-capital funds required 
under subsection (a).
    (c) Waiver.--(1) The Secretary of Defense may waive the 
requirements of this section upon certifying to Congress, in 
writing, that the waiver is necessary to meet requirements 
associated with--
            (A) a contingency operation (as defined in section 
        101(a)(13) of title 10, United States Code); or
            (B) an operation of the Armed Forces that commenced 
        before October 1, 1998, and continues during fiscal 
        year 1999.
    (2) The waiver authority under paragraph (1) may not be 
delegated to any official other than the Deputy Secretary of 
Defense.
    (3) The waiver authority under paragraph (1) does not apply 
to the limitation in subsection (d) or the limitation in 
section 2208(l)(3) of title 10, United States Code (as added by 
subsection (e)).
    (d) Permanent Limitation on Advance Billings.--(1) Section 
2208(l) of title 10, United States Code, is amended--
            (A) by redesignating paragraph (3) as paragraph 
        (4); and
            (B) by inserting after paragraph (2) the following 
        new paragraph (3):
    ``(3) The total amount of the advance billings rendered or 
imposed for all working-capital funds of the Department of 
Defense in a fiscal year may not exceed $1,000,000,000.''.
    (2) Section 2208(l)(3) of such title, as added by paragraph 
(1), applies to fiscal years after fiscal year 1999.
    (e) Semiannual Report.--(1) The Under Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of 
Representatives--
            (A) not later than May 1, 1999, a report on the 
        administration of this section for the six-month period 
        ending on March 31, 1999; and
            (B) not later than November 1, 1999, a report on 
        the administration of this section for the six-month 
        period ending on September 30, 1999.
    (2) Each report shall include, for the period covered by 
the report, the following:
            (A) The profit and loss status of each working-
        capital fund activity.
            (B) The actions taken by the Secretary of each 
        military department to use assessments of surcharges to 
        correct for unbudgeted losses.
    Sec. 8147. The Secretary of Defense shall establish, 
through a revised Defense Integrated Military Human Resources 
System (DIMHRS), a defense reform initiative enterprise pilot 
program for military manpower and personnel information: 
Provided, That this pilot program should include all functions 
and systems currently included in DIMHRS and shall be expanded 
to include all appropriate systems within the enterprise of 
personnel, manpower, training, and compensation: Provided 
further, That in establishing a revised DIMHRS enterprise 
program for manpower and personnel information superiority the 
functions of this program shall include, but not be limited to: 
(1) an analysis and determination of the number and kinds of 
information systems necessary to support manpower and personnel 
within the Department of Defense; and (2) the establishment of 
programs to develop and implement information systems in 
support of manpower and personnel to include an enterprise 
level strategic approach, performance and results based 
management, business process improvement and other non-material 
solutions, the use of commercial or government off-the-shelf 
technology, the use of modular contracting as defined by Public 
Law 104-106, and the integration and consolidation of existing 
manpower and personnel information systems: Provided further, 
That the Secretary of Defense shall re-instate fulfillment 
standards designated as ADS-97-03-GD, dated January, 1997: 
Provided further, That the requirements of this section should 
be implemented not later than six months after the date of 
enactment of this Act.
    Sec. 8148. (a) The Secretary of Defense, after consultation 
with the Chairman of the Joint Chiefs of Staff and the military 
service chiefs, shall conduct a comprehensive reassessment of 
existing military compensation, benefits, and related programs. 
The Secretary shall consider the effectiveness of these 
programs in providing an adequate standard of living and family 
support for service members and dependents, the current and 
projected effects of these programs on recruiting and retention 
of service members, and improvements which could be gained by 
potential changes in these programs.
    (b) In conducting this assessment, the Secretary's analysis 
shall consider, but not be limited to, the following areas:
            (1) Military pay and benefits, to include special 
        pay and targeted bonus programs;
            (2) The military retirement system, including an 
        assessment of the effects of the significant changes 
        made to the retirement system in 1986;
            (3) Health care programs; and
            (4) Housing, family support, and morale, welfare 
        and recreation programs.
    (c) The Secretary shall consider the cumulative and 
complementary ability of these programs, and the effects of 
potential modifications to these programs, in terms of their 
ability to contribute to the attainment of existing and future 
manpower requirements of the military services, as well as the 
provision of a fair and equitable quality of life for service 
members and their dependents.
    (d) The Secretary shall provide an initial report on these 
issues to the congressional defense committees within 60 days 
of the enactment of this Act.
    (e) Concurrent with submission of the fiscal year 2000 
budget, the Secretary shall provide a comprehensive assessment 
of these issues, and proposed changes in existing programs 
should he determine they are warranted, to the Congress.
    This Act may be cited as the ``Department of Defense 
Appropriations Act, 1999''.
    And the Senate agree to the same.
                                   Bill Young,
                                   Joe McDade,
                                   Jerry Lewis,
                                   Joe Skeen,
                                   David L. Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Ernest J. Istook, Jr.,
                                   Randy ``Duke'' Cunningham,
                                   Bob Livingston,
                                   John P. Murtha,
                                   Norman D. Dicks,
                                   W.G. (Bill) Hefner,
                                   Martin Olav Sabo,
                                   Julian C. Dixon,
                                   Peter J. Visclosky,
                                 Managers on the Part of the House.

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

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 4103), making 
appropriations for the Department of Defense for the fiscal 
year ending September 30, 1999, and for other purposes, submit 
the following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report.
      The conference agreement on the Department of Defense 
Appropriations Act, 1999, incorporates some of the provisions 
of both the House and Senate versions of the bill. The language 
and allocations set forth in House Report 105-591 and Senate 
Report 105-200 should be complied with unless specifically 
addressed in the accompanying bill and statement of the 
managers to the contrary.
      Senate Amendment: The Senate deleted the entire House 
bill after the enacting clause and inserted the Senate bill. 
The conference agreement includes a revised bill.

              Definition of Program, Project, and Activity

      The conferees agree that for the purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177) as amended by the Balanced Budget and Emergency Deficit 
Control Reaffirmation Act of 1987 (Public Law 100-119) and by 
the Budget Enforcement Act of 1990 (Public Law 101-508), the 
term program, project, and activity for appropriations 
contained in this Act shall be defined as the most specific 
level of budget items identified in the Department of Defense 
Appropriations Act, 1999, the accompanying House and Senate 
Committee reports, the conference report and accompanying joint 
explanatory statement of the managers of the Committee of 
Conference, the related classified annexes and reports, and the 
P-1 and R-1 budget justification documents as subsequently 
modified by Congressional action. The following exception to 
the above definition shall apply:
      For the Military Personnel and the Operation and 
Maintenance accounts, the term ``program, project, and 
activity'' is defined as the appropriations accounts contained 
in the Department of Defense Appropriations Act. At the time 
the President submits his budget for fiscal year 2000, the 
conferees direct the Department of Defense to transmit to the 
congressional defense committees budget justification documents 
to be known as the ``M-1'' and ``O-1'' which shall identify, at 
the budget activity, activity group, and subactivity group 
level, the amounts requested by the President to be 
appropriated to the Department of Defense for operation and 
maintenance in any budget request, or amended budget request, 
for fiscal year 2000.

                         special interest items

      Items for which the conferees have specifically provided 
funds through a conference agreement or through adoption of 
original House or Senate recommendations in Research, 
Development, Test, and Evaluation or Procurement appropriations 
are Congressional special interest items for the purpose of the 
Base for Reprogramming (DD Form 1414). These items are 
identified in the respective committee or conference reports 
using the phrases ``only for'' or ``only to'' or are 
specifically identified in the tables. Each item will be 
carried on the DD form 1414 in the amount agreed to by the 
conferees. The Department of Defense shall consult with the 
congressional defense committees before issuing the DD form 
1414 so there is common agreement on items of special interest. 
In no case will the Department of Defense transfer funds from 
special interest items through the below threshold 
reprogramming process. In addition, the term program in Section 
8111 includes any subprogram, modification, project, or 
subproject not previously justified and appropriated in a given 
appropriation account by the Congress through the normal budget 
process.

                      TITLE I--MILITARY PERSONNEL

      The conferees agree to the following amounts for the 
Military Personnel accounts as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Active personnel:
    Army........................................      21,002,051      20,908,851      20,822,051      20,841,687
    Navy........................................      16,613,053      16,560,253      16,532,153      16,570,754
    Marine Corps................................       6,272,089       6,241,189       6,253,189       6,263,387
    Air Force...................................      17,311,683      17,201,583      17,205,660      17,211,987
Reserve personnel:
    Army........................................       2,152,075       2,171,675       2,152,075       2,167,052
    Navy........................................       1,387,379       1,427,979       1,387,379       1,426,663
    Marine Corps................................         401,888         403,513         401,888         406,616
    Air Force...................................         856,176         850,576         856,176         852,324
National Guard personnel:
    Army........................................       3,404,595       3,413,195       3,499,595       3,489,987
    Air Force...................................       1,376,097       1,372,997       1,376,097       1,377,109
                                                 ---------------------------------------------------------------
      Total, Military Personnel.................      70,777,086      70,551,811      70,486,263      70,607,566
----------------------------------------------------------------------------------------------------------------

                           pay raise increase

      The conferees recommend an increase of $202,455,000 to 
active and Guard and Reserve personnel accounts to provide for 
a 3.6 percent military pay raise, an increase of a half percent 
over the budget request of 3.1 percent.

                        force structure changes

      The conferees recommend a total of $106,200,000 in the 
Military Personnel and Operation and Maintenance accounts for 
restoration of force structure that was reduced in the budget 
request, as follows:

                         [Dollars in thousands]
------------------------------------------------------------------------
                               Milpers      O&M       Proc.      Total
------------------------------------------------------------------------
Air Force B-52 aircraft.....      3,600     40,100     10,300     54,000
Army Reserve AGR's..........     15,000  .........  .........     15,000
Navy Reserve P-3 aircraft...      2,600      7,600  .........     10,200
Army National Guard civilian
 technicians................  .........     27,000  .........     27,000
------------------------------------------------------------------------

                    personnel underexecution savings

      The conferees recommend a total reduction of $220,800,000 
for active and reserve military personnel accounts due to lower 
than projected end strengths, and differences in the actual 
grade mix of officers and enlisted recommended in the budget 
request. The General Accounting Office estimates that the 
active duty components will have approximately 15,000 fewer 
personnel on board beginning in fiscal year 1999, and the 
Reserve components approximately 3,700 personnel. As a result, 
the fiscal year 1999 requirements are overstated.

                   replacement medals and decorations

      The conferees encourage the Secretary of Defense to take 
all actions necessary to eliminate the backlog of requests of 
former service members for replacement medals and decorations.

                     backlog of unpaid retired pay

      The conferees direct the Secretary of Defense to take all 
actions necessary to eliminate any backlog of unpaid retired 
pay for former service members, to include those retired from 
the Guard and Reserve. Not later than ninety days after 
enactment of this Act, the Secretary of Defense shall submit a 
report on the backlog of unpaid retired pay. The report shall 
include the actions taken to eliminate any backlog; the extent 
of any remaining backlog; and a description of any additional 
actions required to ensure that retired pay is paid in a timely 
manner.

                          Active End Strength

                           [Fiscal year 1999]
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
Army.............................      480,000      480,000  ...........
Navy.............................      372,696      372,696  ...........
Marine Corps.....................      172,200      172,200  ...........
Air Force........................      370,882      370,984         +102
                                  --------------------------------------
      Total, Active Personnel....    1,395,778    1,395,880         +102
------------------------------------------------------------------------

                        Military Personnel, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
      50            MILITARY PERSONNEL, ARMY
     ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER:
     150 BASIC PAY                                            3,439,898    3,439,898    3,439,898    3,439,898
     200 RETIRED PAY ACCRUAL                                  1,038,849    1,038,849    1,038,849    1,038,849
     350 BASIC ALLOWANCE FOR HOUSING                            561,424      561,424      561,424      561,424
     400 BASIC ALLOWANCE FOR SUBSISTENCE                        147,905      147,905      147,905      147,905
     450 INCENTIVE PAYS                                          64,469       64,469       64,469       64,469
     500 SPECIAL PAYS                                           190,936      190,936      190,936      190,936
     550 ALLOWANCES                                             102,643      102,643      102,643      102,643
     600 SEPARATION PAY                                         142,731      142,731      142,731      142,731
     650 SOCIAL SECURITY TAX                                    298,713      298,713      298,713      298,713
                                                           -----------------------------------------------------
     700   TOTAL, BUDGET ACTIVITY 1                           5,987,568    5,987,568    5,987,568    5,987,568
                                                           =====================================================
     ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED PERSONNEL:
     800 BASIC PAY                                            7,437,252    7,437,252    7,437,252    7,437,252
     850 RETIRED PAY ACCRUAL                                  2,246,050    2,246,050    2,246,050    2,246,050
    1000 BASIC ALLOWANCE FOR HOUSING                          1,171,828    1,171,828    1,171,828    1,171,828
    1050 INCENTIVE PAYS                                          68,068       68,068       68,068       68,068
    1100 SPECIAL PAYS                                           165,166      175,166      165,166      165,166
    1150 ALLOWANCES                                             513,801      513,801      513,801      513,801
    1200 SEPARATION PAY                                         325,993      325,993      325,993      325,993
    1250 SOCIAL SECURITY TAX                                    635,065      635,065      635,065      635,065
                                                           -----------------------------------------------------
    1300   TOTAL, BUDGET ACTIVITY 2                          12,563,223   12,573,223   12,563,223   12,563,223
                                                           =====================================================
    1ACTIVITY 3: PAY AND ALLOWANCES OF CADETS:
    1400 ACADEMY CADETS                                          39,084       39,084       39,084       39,084
                                                           =====================================================
    1ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL:
    1550 BASIC ALLOWANCE FOR SUBSISTENCE                        774,529      774,529      774,529      774,529
    1600 SUBSISTENCE-IN-KIND                                    366,887      366,887      366,887      366,887
                                                           -----------------------------------------------------
    1650   TOTAL, BUDGET ACTIVITY 4                           1,141,416    1,141,416    1,141,416    1,141,416
                                                           =====================================================
    1ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL:
    1750 ACCESSION TRAVEL                                       115,723      115,723      115,723      115,723
    1800 TRAINING TRAVEL                                         49,249       49,249       49,249       49,249
    1850 OPERATIONAL TRAVEL                                     143,258      143,258      143,258      143,258
    1900 ROTATIONAL TRAVEL                                      575,172      575,172      575,172      575,172
    1950 SEPARATION TRAVEL                                      161,505      161,505      161,505      161,505
    2000 TRAVEL OF ORGANIZED UNITS                               16,731       16,731       16,731       16,731
    2050 NON-TEMPORARY STORAGE                                   25,271       25,271       25,271       25,271
    2100 TEMPORARY LODGING EXPENSE                               11,638       11,638       11,638       11,638
                                                           -----------------------------------------------------
    2200   TOTAL, BUDGET ACTIVITY 5                           1,098,547    1,098,547    1,098,547    1,098,547
                                                           =====================================================
    2ACTIVITY 6: OTHER MILITARY PERSONNEL COSTS:
    2300 APPREHENSION OF MILITARY DESERTERS                         780          780          780          780
    2350 INTEREST ON UNIFORMED SERVICES SAVINGS                     534          534          534          534
    2400 DEATH GRATUITIES                                         1,962        1,962        1,962        1,962
    2450 UNEMPLOYMENT BENEFITS                                  116,010      116,010      116,010      116,010
    2500 SURVIVOR BENEFITS                                        7,740        7,740        7,740        7,740
    2550 EDUCATION BENEFITS                                      76,807       76,807       76,807       76,807
    2600 ADOPTION EXPENSES                                          380          380          380          380
    2620 ADVANCE MILITARY PAY                                   161,000  ...........  ...........  ...........
                                                           -----------------------------------------------------
    2700   TOTAL, BUDGET ACTIVITY 6                             365,213      204,213      204,213      204,213
                                                           =====================================================
    2750 LESS REIMBURSABLES                                    -193,000     -193,000     -193,000     -193,000
    2760 FOREIGN CURRENCY FLUCTUATION                       ...........       -5,500       -7,000  ...........
    2770 PERSONNEL UNDEREXECUTION                           ...........      -10,700      -12,000      -60,000
    2780 MILITARY PAY SHORTFALL                             ...........       74,000  ...........  ...........
    2790 PAY RAISE INCREASE                                 ...........  ...........  ...........       60,636
                                                           -----------------------------------------------------
    2800   TOTAL, MILITARY PERSONNEL, ARMY                   21,002,051   20,908,851   20,822,051   20,841,687
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 6: Other Military Personnel Costs:
    2620 Advance Military Pay...........................        -161,000
Undistributed:
    2770 Personnel Underexecution.......................         -60,000
    2790 Pay Raise Increase.............................          60,636

                        Military Personnel, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
    2850            MILITARY PERSONNEL, NAVY
    2ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER:
    2950 BASIC PAY                                            2,419,133    2,419,133    2,419,133    2,419,133
    3000 RETIRED PAY ACCRUAL                                    730,578      730,578      730,578      730,578
    3150 BASIC ALLOWANCE FOR HOUSING                            516,471      516,471      516,471      516,471
    3200 BASIC ALLOWANCE FOR SUBSISTENCE                        102,537      102,537      102,537      102,537
    3250 INCENTIVE PAYS                                         113,365      113,365      113,365      113,365
    3330 SPECIAL PAYS                                           214,711      214,711      214,711      214,711
    3350 ALLOWANCES                                              73,643       73,643       73,643       73,643
    3400 SEPARATION PAY                                          71,505       71,505       71,505       71,505
    3450 SOCIAL SECURITY TAX                                    205,083      205,083      205,083      205,083
                                                           -----------------------------------------------------
    3500   TOTAL, BUDGET ACTIVITY 1                           4,447,026    4,447,026    4,447,026    4,447,026
                                                           =====================================================
    3ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED PERSONNEL:
    3600 BASIC PAY                                            5,975,635    5,975,635    5,975,635    5,975,635
    3650 RETIRED PAY ACCRUAL                                  1,802,223    1,802,223    1,802,223    1,802,223
    3800 BASIC ALLOWANCE FOR HOUSING                          1,320,566    1,320,566    1,320,566    1,320,566
    3850 INCENTIVE PAYS                                          88,091       88,091       88,091       88,091
    3900 SPECIAL PAYS                                           487,881      497,281      487,881      487,881
    3950 ALLOWANCE                                              435,031      435,031      435,031      435,031
    4000 SEPARATION PAY                                         175,754      175,754      175,754      175,754
    4050 SOCIAL SECURITY TAX                                    516,201      516,201      516,201      516,201
                                                           -----------------------------------------------------
    4100   TOTAL, BUDGET ACTIVITY 2                          10,801,382   10,810,782   10,801,382   10,801,382
                                                           =====================================================
    4ACTIVITY 3: PAY AND ALLOWANCES OF MIDSHIPMEN:
    4200 MIDSHIPMEN                                              35,947       35,947       35,947       35,947
                                                           =====================================================
    4ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL:
    4350 BASIC ALLOWANCE FOR SUBSISTENCE                        514,384      514,384      514,384      514,384
    4440 SUBSISTENCE-IN-KIND                                    281,190      281,190      281,190      281,190
                                                           -----------------------------------------------------
    4450   TOTAL, BUDGET ACTIVITY 4                             795,574      795,574      795,574      795,574
                                                           =====================================================
    4ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL:
    4550 ACCESSION TRAVEL                                        45,760       45,760       45,760       45,760
    4600 TRAINING TRAVEL                                         59,548       59,548       59,548       59,548
    4650 OPERATONAL TRAVEL                                      150,000      150,000      150,000      150,000
    4700 ROTATIONAL TRAVEL                                      223,494      223,494      223,494      223,494
    4750 SEPARATION TRAVEL                                      108,796      108,796      108,796      108,796
    4800 TRAVEL OF ORGANIZED UNITS                               16,840       16,840       16,840       16,840
    4850 NON-TEMPORARY STORAGE                                   13,910       13,910       13,910       13,910
    4900 TEMPORARY LODGING EXPENSE                                5,751        5,751        5,751        5,751
    4950 OTHER                                                    4,638        4,638        4,638        4,638
                                                           -----------------------------------------------------
    5000   TOTAL, BUDGET ACTIVITY 5                             628,737      628,737      628,737      628,737
                                                           =====================================================
    5ACTIVITY 6. OTHER MILITARY PERSONNEL COSTS:
    5100 APPREHENSION OF MILITARY DESERTERS                         826          826          826          826
    5150 INTEREST ON UNIFORMED SERVICES SAVINGS                      40           40           40           40
    5200 DEATH GRATUITIES                                         1,806        1,806        1,806        1,806
    5250 UNEMPLOYMENT BENEFITS                                   62,922       62,922       62,922       62,922
    5300 SURVIVOR BENEFITS                                        3,540        3,540        3,540        3,540
    5350 EDUCATION BENEFITS                                      19,888       33,788       19,888       19,888
    5400 ADOPTION EXPENSES                                          272          272          272          272
    5450 ADVANCE MILITARY PAY                                    69,000  ...........  ...........  ...........
                                                           -----------------------------------------------------
    5500   TOTAL, BUDGET ACTIVITY 6                             158,294      103,194       89,294       89,294
                                                           =====================================================
    5550 LESS REIMBURSABLES                                    -253,907     -253,907     -253,907     -253,907
    5570 FOREIGN CURRENCY FLUCTUATION                       ...........       -9,100       -5,300  ...........
    5580 PERSONNEL UNDEREXECUTION                           ...........       -8,000       -6,600      -25,000
    5590 ACTIVE DUTY SPECIAL WORK                           ...........       10,000  ...........        5,000
    5595 PAY RAISE INCREASE                                 ...........  ...........  ...........       46,701
                                                           -----------------------------------------------------
    5600   TOTAL, MILITARY PERSONNEL, NAVY                   16,613,053   16,560,253   16,532,153   16,570,754
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 6: Other Military Personnel Costs:
    5450 Advance Military Pay...........................         -69,000
Undistributed:
    5580 Personnel Underexecution.......................         -25,000
    5590 Active Duty Special Work.......................           5,000
    5595 Pay Raise Increase.............................          46,701

                    Military Personnel, Marine Corps

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
    5650        MILITARY PERSONNEL, MARINE CORPS
    5ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER:
    5750 BASIC PAY                                              780,978      780,978      780,978      780,978
    5800 RETIRED PAY ACCRUAL                                    235,855      235,855      235,855      235,855
    5950 BASIC ALLOWANCE FOR HOUSING                            132,455      132,455      132,455      132,455
    6000 BASIC ALLOWANCE FOR SUBSISTENCE                         33,795       33,795       33,795       33,795
    6050 INCENTIVE PAYS                                          39,657       39,657       39,657       39,657
    6100 SPECIAL PAYS                                               938          938          938          938
    6150 ALLOWANCES                                              18,583       18,583       18,583       18,583
    6200 SEPARATION PAY                                          15,288       15,288       15,288       15,288
    6250 SOCIAL SECURITY TAX                                     65,947       65,947       65,947       65,947
                                                           -----------------------------------------------------
    6300   TOTAL, BUDGET ACTIVITY 1                           1,323,496    1,323,496    1,323,496    1,323,496
                                                           =====================================================
    6ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED PERSONNEL:
    6400 BASIC PAY                                            2,638,628    2,638,628    2,638,628    2,638,628
    6450 RETIRED PAY ACCRUAL                                    794,902      794,902      794,902      794,902
    6600 BASIC ALLOWANCE FOR HOUSING                            401,062      401,062      401,062      401,062
    6650 INCENTIVE PAYS                                           8,376        8,376       13,376        8,376
    6700 SPECIAL PAYS                                            56,918       59,918       56,918       56,918
    6750 ALLOWANCES                                             148,132      148,132      148,132      148,132
    6800 SEPARATION PAY                                          62,104       62,104       62,104       62,104
    6850 SOCIAL SECURITY TAX                                    224,831      224,831      224,831      224,831
                                                           -----------------------------------------------------
    6900   TOTAL, BUDGET ACTIVITY 2                           4,334,953    4,337,953    4,339,953    4,334,953
                                                           =====================================================
    6ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL:
    7000 BASIC ALLOWANCE FOR SUBSISTENCE                        228,436      228,436      228,436      228,436
    7050 SUBSISTENCE-IN-KIND                                    134,007      134,007      134,007      134,007
                                                           -----------------------------------------------------
    7100   TOTAL, BUDGET ACTIVITY 4                             362,443      362,443      362,443      362,443
                                                           =====================================================
    7ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL:
    7200 ACCESSION TRAVEL                                        30,096       30,096       30,096       30,096
    7250 TRAINING TRAVEL                                          5,071        5,071        5,071        5,071
    7300 OPERATIONAL TRAVEL                                      52,995       52,995       52,995       52,995
    7350 ROTATIONAL TRAVEL                                       87,581       87,581       87,581       87,581
    7400 SEPARATION TRAVEL                                       42,012       42,014       42,014       42,014
    7450 TRAVEL OF ORGANIZED UNITS                                  771          771          771          771
    7500 NON-TEMPORARY STORAGE                                    4,726        4,726        4,726        4,726
    7550 TEMPORARY LODGING EXPENSE                                2,802        2,802        2,802        2,802
    7600 OTHER                                                    1,698        1,698        1,698        1,698
                                                           -----------------------------------------------------
    7650   TOTAL, BUDGET ACTIVITY 5                             227,754      227,754      227,754      227,754
                                                           =====================================================
    7ACTIVITY 6: OTHER MILITARY PERSONNEL COSTS:
    7750 APPREHENSION OF MILITARY DESERTERS                         927          927          927          927
    7800 INTEREST ON UNIFORMED SERVICES SAVINGS                      16           16           16           16
    7850 DEATH GRATUITIES                                           990          990          990          990
    7900 UNEMPLOYMENT BENEFITS                                   27,846       27,846       27,846       27,846
    7950 SURVIVOR BENEFITS                                        1,614        1,614        1,614        1,614
    8000 EDUCATION BENEFITS                                       6,039       11,939       11,039        6,039
    8050 ADOPTION EXPENSES                                           47           47           47           47
    8100 ADVANCE MILITARY PAY                                    18,000  ...........  ...........  ...........
                                                           -----------------------------------------------------
    8150   TOTAL, BUDGET ACTIVITY 6                              55,479       43,379       42,479       37,479
                                                           =====================================================
    8200 LESS REIMBURSABLES                                     -32,036      -32,036      -32,036      -32,036
    8220 FOREIGN CURRENCY FLUCTUATION                       ...........       -3,200       -2,000  ...........
    8230 PERSONNEL UNDEREXECUTION                           ...........      -18,600       -8,900       -9,300
    8240 PAY RAISE INCREASE                                 ...........  ...........  ...........       18,598
                                                           -----------------------------------------------------
    8250   TOTAL, MILITARY PERSONNEL, MARINE CORPS            6,272,089    6,241,189    6,253,189    6,263,387
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 6: Other Military Personnel Costs:
    8100 Advance Military Pay...........................         -18,000
Undistributed:
    8230 Personnel Underexecution.......................          -9,300
    8240 Pay Raise Increase.............................          18,598

                     Military Personnel, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
    8300          MILITARY PERSONNEL, AIR FORCE
    83ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER:
    8400  BASIC PAY                                           3,346,985    3,346,985    3,346,985    3,346,985
    8450  RETIRED PAY ACCRUAL                                 1,010,789    1,010,789    1,010,789    1,010,789
    8600  BASIC ALLOWANCE FOR HOUSING                           579,333      579,333      579,333      579,333
    8650  BASIC ALLOWANCE FOR SUBSISTENCE                       136,285      136,285      136,285      136,285
    8700  INCENTIVE PAYS                                        208,497      208,497      208,497      208,497
    8750  SPECIAL PAYS                                          188.576      188,576      188,576      188,576
    8800  ALLOWANCES                                             92,782       92,782       92,782       92,782
    8850  SEPARATION PAY                                        108,876      108,876      108,876      108,876
    8900  SOCIAL SECURITY TAX                                   289,575      289,575      289,575      289,575
                                                           -----------------------------------------------------
    8950    TOTAL, BUDGET ACTIVITY 1                          5,961,698    5,961,698    5,961,698    5,961,698
                                                           =====================================================
    90ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED
       PERSONNEL:
    9050  BASIC PAY                                           5,851,982    5,851,982    5,851,982    5,851,982
    9100  RETIRED PAY ACCRUAL                                 1,767,299    1,767,299    1,767,299    1,767,299
    9250  BASIC ALLOWANCE FOR HOUSING                         1,008,454    1,008,454    1,008,454    1,008,454
    9300  INCENTIVE PAYS                                         25,744       25,744       25,744       25,744
    9350  SPECIAL PAYS                                           80,528       80,528       80,528       80,528
    9400  ALLOWANCES                                            415,835      415,835      415,835      415,835
    9450  SEPARATION PAY                                         66,262       66,262       66,262       66,262
    9500  SOCIAL SECURITY TAX                                   508,263      508,263      508,263      508,263
                                                           -----------------------------------------------------
    9550    TOTAL, BUDGET ACTIVITY 2                          9,724,367    9,724,367    9,724,367    9,724,367
                                                           =====================================================
    96ACTIVITY 3: PAY AND ALLOWANCES OF CADETS: ACADEMY
       CADETS:
    9650  ACADEMY CADETS                                         36,021       36,021       36,021       36,021
                                                           =====================================================
    97ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL:
    9800  BASIC ALLOWANCE FOR SUBSISTENCE                       683,108      683,108      683,108      683,108
    9850  SUBSISTENCE-IN-KIND                                   111,954      111,954      111,954      111,954
                                                           -----------------------------------------------------
    9900    TOTAL, BUDGET ACTIVITY 4                            795,062      795,062      795,062      795,062
                                                           =====================================================
    99ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL:
   10000  ACCESSION TRAVEL                                       54,193       54,193       54,193       54,193
   10050  TRAINING TRAVEL                                        56,225       56,225       56,225       56,225
   10100  OPERATIONAL TRAVEL                                    149,492      149,492      149,492      149,492
   10150  ROTATIONAL TRAVEL                                     443,964      443,964      443,964      443,964
   10200  SEPARATION TRAVEL                                      96,955       96,955       96,955       96,955
   10250  TRAVEL OF ORGANIZED UNITS                              27,455       27,455       27,455       27,455
   10300  NON-TEMPORARY STORAGE                                  22,714       22,714       22,714       22,714
   10350  TEMPORARY LODGING EXPENSE                              38,417       38,417       38,417       38,417
   10400  OTHER                                                   2,531        2,531        2,531        2,531
                                                           -----------------------------------------------------
   10450    TOTAL, BUDGET ACTIVITY 5                            891,946      891,946      891,946      891,946
                                                           =====================================================
   105ACTIVITY 6: OTHER MILITARY PERSONNEL COSTS:
   10550  APPREHENSION OF MILITARY DESERTERS                        100          100          100          100
   10600  INTEREST ON UNIFORMED SERVICES SAVINGS                    575          575          575          575
   10650  DEATH GRATUITIES                                        1,470        1,470        1,470        1,470
   10700  UNEMPLOYMENT BENEFITS                                  41,623       37,623       41,623       37,623
   10750  SURVIVOR BENEFITS                                       4,442        4,442        4,442        4,442
   10800  EDUCATION BENEFITS                                      5,193        5,193        5,193        5,193
   10850  ADOPTION EXPENSES                                         800          800          800          800
   10900  ADVANCE MILITARY PAY                                   53,000  ...........  ...........  ...........
   10920  OTHER                                                     550          550          550          550
                                                           -----------------------------------------------------
   10950    TOTAL, BUDGET ACTIVITY 6                            107,753       50,753       54,753       50,753
                                                           =====================================================
   11000  LESS REIMBURSABLES                                   -205,164     -205,164     -205,164     -205,164
   11010  FOREIGN CURRENCY FLUCTUATION                      ...........       -3,100       -3,623  ...........
   11020  PERSONNEL UNDEREXECUTION                          ...........      -50,000      -53,000      -97,000
   11030  B-52 FORCE STRUCTURE                              ...........  ...........        3,600        3,600
   11040  PAY RAISE INCREASE                                ...........  ...........  ...........       50,704
                                                           -----------------------------------------------------
   11050    TOTAL, MILITARY PERSONNEL, AIR FORCE             17,311,683   17,201,583   17,205,660   17,211,987
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 6: Other Military Personnel Costs:
    10700 Unemployment Benefits.........................          -4,000
    10900 Advance Military Pay..........................         -53,000
Undistributed:
    11020 Personnel Underexecution......................         -97,000
    11030 B-52 Force Structure..........................           3,600
    11040 Pay Raise Increase............................          50,704

                   National Guard and Reserve Forces

      The conferees agree to provide $9,719,751,000 in Reserve 
personnel appropriations, $9,810,398,000 in Operation and 
maintenance appropriations and $352,000,000 in National Guard 
and Reserve Equipment appropriations. These funds support a 
Selected Reserve strength of 877,290 as shown below.

                          Reserve End Strength

                           [Fiscal year 1999]
------------------------------------------------------------------------
                                                              Conference
                                         Budget   Conference  vs. Budget
------------------------------------------------------------------------
  Selected Reserve:
    Army Reserve.....................    208,000     208,000  ..........
    Navy Reserve.....................     90,843      91,039        +196
    Marine Corps Reserve.............     40,018      40,018  ..........
    Air Force Reserve................     74,242      74,242  ..........
    Army National Guard..............    357,000     357,000  ..........
    Air National Guard...............    106,991     106,991  ..........
                                      ----------------------------------
      Total..........................    877,094     877,290        +196
                                      ==================================
AGR/TARS:
    Army Reserve.....................     11,804      12,804      +1,000
    Navy Reserve.....................     15,590      15,618         +28
    Marine Corps Reserve.............      2,362       2,362  ..........
    Air Force Reserve................        991         991  ..........
    Army National Guard..............     21,763      21,763  ..........
    Air National Guard...............     10,930      10,930  ..........
                                      ----------------------------------
      Total..........................     63,440      64,468      +1,028
                                      ==================================
Technicians:
    Army Reserve.....................      6,474       6,474  ..........
    Air Force Reserve................      9,761       9,761  ..........
    Army National Guard..............     23,815      24,761        +946
    Air National Guard...............     22,750      22,750  ..........
                                      ----------------------------------
      Total..........................     62,800      63,746        +946
------------------------------------------------------------------------

                        Reserve Personnel, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   11150             RESERVE PERSONNEL, ARMY
   112ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:
   11250  PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48)         869,736      869,736      869,736      869,736
   11300  PAY GROUP B TRAINING (BACKFILL FOR ACTIVE DUTY)        26,345       26,345       26,345       26,345
   11350  PAY GROUP F TRAINING (RECRUITS)                       140,498      140,498      140,498      140,498
   11400  PAY GROUP P TRAINING (PIPELINE RECRUITS)                8,024        8,024        8,024        8,024
                                                           -----------------------------------------------------
   11500  TOTAL, BUDGET ACTIVITY 1                            1,044,603    1,044,603    1,044,603    1,044,603
                                                           =====================================================
   115ACTIVITY 2: OTHER TRAINING AND SUPPORT:
   11600  MOBILIZATION TRAINING                                   7,330        7,330        7,330        7,330
   11650  SCHOOL TRAINING                                        92,702       92,702       92,702       92,702
   11700  SPECIAL TRAINING                                      101,455      101,455      101,455      101,455
   11750  ADMINISTRATION AND SUPPORT                            795,108      795,108      795,108      795,108
   11800  EDUCATION BENEFITS                                     20,996       20,996       20,996       20,996
   11850  ROTC--SENIOR, JUNIOR SCHOLARSHIP                       57,547       57,547       57,547       57,547
   11900  HEALTH PROFESSION SCHOLARSHIP PROGRAM                  21,554       21,554       21,554       21,554
   11950  OTHER PROGRAMS                                         10,780       10,780       10,780       10,780
                                                           -----------------------------------------------------
   12000    TOTAL, BUDGET ACTIVITY 2                          1,107,472    1,107,472    1,107,472    1,107,472
                                                           =====================================================
   120PERSONNEL UNDEREXECUTION                              ...........       -5,400  ...........       -5,400
   120FULL TIME SUPPORT/AGR'S                               ...........       25,000  ...........       15,000
   120PAY RAISE INCREASE                                    ...........  ...........  ...........        5,377
                                                           -----------------------------------------------------
   12050    TOTAL RESERVE PERSONNEL, ARMY                     2,152,075    2,171,675    2,152,075    2,167,052
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

  Undistributed:        [In thousands of dollars]
    12010 Personnel Underexecution......................          -5,400
    12020 Full-time Support/AGR's.......................          15,000
    12030 Pay Raise Increase............................           5,377

                        Reserve Personnel, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   12100             RESERVE PERSONNEL, NAVY
   121ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:
   12200  PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48)         551,421      551,421      551,421      551,421
                                                           -----------------------------------------------------
   12350    TOTAL, BUDGET ACTIVITY 1                            551,421      551,421      551,421      551,421
                                                           =====================================================
   124ACTIVITY 2: OTHER TRAINING AND SUPPORT:
   12450  MOBILIZATION TRAINING                                   3,028        3,028        3,028        3,028
   12500  SCHOOL TRAINING                                         6,091        6,091        6,091        6,091
   12550  SPECIAL TRAINING                                       21,741       21,741       21,741       21,741
   12600  ADMINISTRATION AND SUPPORT                            757,567      757,567      757,567      757,567
   12650  EDUCATION BENEFITS                                      3,983        3,983        3,983        3,983
   12700  ROTC--SENIOR, JUNIOR, SCHOLARSHIP                      21,175       21,175       21,175       21,175
   12750  HEALTH PROFESSION SCHOLARSHIP PROGRAM                  18,892       18,892       18,892       18,892
   12800  OTHER PROGRAMS                                          3,481        3,481        3,481        3,481
                                                           -----------------------------------------------------
   12850    TOTAL, BUDGET ACTIVITY 2                            835,958      835,958      835,958      835,958
                                                           =====================================================
   128PERSONNEL UNDEREXECUTION                              ...........       -5,000  ...........       -5,000
   128CONTRIBUTORY SUPPORT TO CINCS                         ...........       10,000  ...........        5,000
   128ANNUAL TRAINING                                       ...........       33,000  ...........       33,000
   128P-3 SQUADRONS                                         ...........        2,600  ...........        2,600
   128PAY RAISE INCREASE                                    ...........  ...........  ...........        3,684
                                                           -----------------------------------------------------
   12900  TOTAL, RESERVE PERSONNEL, NAVY                      1,387,379    1,427,979    1,387,379    1,426,663
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Undistributed:
    12870 Personnel Underexecution......................          -5,000
    12880 Contributory Support to CINCs.................           5,000
    12890 Annual Training...............................          33,000
    12891 P-3 Squadrons.................................           2,600
    12895 Pay Raise Increase............................           3,684

                    Reserve Personnel, Marine Corps

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   12950         RESERVE PERSONNEL, MARINE CORPS
   130ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:
   13050  PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48)         142,438      142,438      142,438      142,438
   13100  PAY GROUP B TRAINING (BACKFILL FOR ACTIVE DUTY)        14,951       14,951       14,951       14,951
   13150  PAY GROUP F TRAINING (RECRUITS)                        57,276       57,276       57,276       57,276
   13200  PAY GROUP P TRAINING (PIPELINE RECRUITS)                  286          286          286          286
                                                           -----------------------------------------------------
   13300    TOTAL, BUDGET ACTIVITY 1                            214,951      214,951      214,951      214,951
                                                           =====================================================
   133ACTIVITY 2: OTHER TRAINING AND SUPPORT:
   13400  MOBILIZATION TRAINING                                   1,933        1,933        1,933        1,933
   13450  SCHOOL TRAINING                                         8,736        8,736        8,736        8,736
   13500  SPECIAL TRAINING                                       23,417       23,417       23,417       23,417
   13550  ADMINISTRATION AND SUPPORT                            126,402      126,402      126,402      126,402
   13600  EDUCATION BENEFITS                                     14,240       14,240       14,240       14,240
   13650  ROTC--SENIOR, JUNIOR, SCHOLARSHIP                       3,184        3,184        3,184        3,184
   13700  OTHER PROGRAMS                                          9,025        9,025        9,025        9,025
                                                           -----------------------------------------------------
   13750    TOTAL, BUDGET ACTIVITY 2                            186,937      186,937      186,937      186,937
                                                           =====================================================
   137PERSONNEL UNDEREXECUTION                              ...........       -2,000  ...........  ...........
   137INCREASED USE OF GUARD AND RESERVE                    ...........        3,400  ...........        3,400
   137JROTC                                                 ...........          225  ...........          225
   137PAY RAISE INCREASE                                    ...........  ...........  ...........        1,103
                                                           -----------------------------------------------------
   13800  TOTAL, RESERVE PERSONNEL, MARINE CORPS                401,888      403,513      401,888      406,616
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Undistributed:
    13770 Increased Use of Guard and Reserve............           3,400
    13780 JROTC Program.................................             225
    13790 Pay Raise Increase............................           1,103

                      Reserve Personnel, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   13850          RESERVE PERSONNEL, AIR FORCE
   139ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:
   13950  PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48)         419,362      419,362      419,362      419,362
   14000  PAY GROUP B TRAINING (BACKFILL FOR ACTIVE DUTY)        78,998       78,998       78,998       78,998
   14050  PAY GROUP F TRAINING (RECRUITS)                         4,452        4,452        4,452        4,452
                                                           -----------------------------------------------------
   14150    TOTAL, BUDGET ACTIVITY 1                            502,812      502,812      502,812      502,812
                                                           =====================================================
   142ACTIVITY 2: OTHER TRAINING AND SUPPORT:
   14250  MOBILIZATION TRAINING                                   2,779        2,779        2,779        2,779
   14300  SCHOOL TRAINING                                        62,254       62,254       62,254       62,254
   14350  SPECIAL TRAINING                                      143,526      143,526      143,526      143,526
   14400  ADMINISTRATION AND SUPPORT                             85,601       85,601       85,601       85,601
   14500  ROTC--SENIOR, JUNIOR, SCHOLARSHIP                      34,922       34,922       34,922       34,922
   14550  HEALTH PROFESSION SCHOLARSHIP                          24,282       24,282       24,282       24,282
                                                           -----------------------------------------------------
   14600    TOTAL, BUDGET ACTIVITY 2                            353,364      353,364      353,364      353,364
                                                           =====================================================
   146PERSONNEL UNDEREXECUTION                              ...........       -5,600  ...........       -6,000
   146PAY RAISE INCREASE                                    ...........  ...........  ...........        2,148
                                                           -----------------------------------------------------
   14650    TOTAL, RESERVE PERSONNEL, AIR FORCE                 856,176      850,576      856,176      852,324
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Undistributed:
    14610 Personnel Underexecution......................          -6,000
    14620 Pay Raise Increase............................           2,148

                     National Guard Personnel, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   14700         NATIONAL GUARD PERSONNEL, ARMY
   147ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:
   14800  PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48)       1,650,385    1,650,385    1,650,385    1,650,385
   14850  PAY GROUP F TRAINING (RECRUITS)                       154,688      154,688      154,688      154,688
   14900  PAY GROUP P TRAINING (PIPELINE RECRUITS)               12,867       12,867       12,867       12,867
                                                           -----------------------------------------------------
   15000    TOTAL, BUDGET ACTIVITY 1                          1,817,940    1,817,940    1,817,940    1,817,940
                                                           =====================================================
   150ACTIVITY 2: OTHER TRAINING AND SUPPORT:
   15100  SCHOOL TRAINING                                        81,189      126,189      167,189      146,189
   15150  SPECIAL TRAINING                                       28,845       58,845       28,845       49,845
   15200  ADMINISTRATION AND SUPPORT                          1,433,393    1,433,393    1,442,393    1,433,393
   15250  EDUCATION BENEFITS                                     43,228       43,228       43,228       43,228
                                                           -----------------------------------------------------
   15350    TOTAL, BUDGET ACTIVITY 2                          1,586,655    1,661,655    1,681,655    1,672,655
                                                           =====================================================
   153PERSONNEL UNDEREXECUTION                              ...........      -66,400  ...........      -10,000
   153PAY RAISE INCREASE                                    ...........  ...........  ...........        9,392
                                                           -----------------------------------------------------
   15400  TOTAL, NATIONAL GUARD PERSONNEL, ARMY               3,404,595    3,413,195    3,499,595    3,489,987
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 2: Other Training and Support:
    15100 School Training...............................          65,000
    15150 Special Training..............................          21,000
Undistributed:
    15360 Personnel Underexecution......................         -10,000
    15370 Pay Raise Increase............................           9,392

                  National Guard Personnel, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   15450       NATIONAL GUARD PERSONNEL, AIR FORCE
   155ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:
   15550  PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48)         590,972      590,972      590,972      590,972
   15600  PAY GROUP F TRAINING (RECRUITS)                        22,395       22,395       22,395       22,395
   15650  PAY GROUP P TRAINING (PIPELINE RECRUITS)                1,064        1,064        1,064        1,064
                                                           -----------------------------------------------------
   15750    TOTAL, BUDGET ACTIVITY 1                            614,431      614,431      614,431      614,431
                                                           =====================================================
   158ACTIVITY 2: OTHER TRAINING AND SUPPORT:
   15850  SCHOOL TRAINING                                        95,105       95,105       95,105       95,105
   15900  SPECIAL TRAINING                                       60,780       60,780       60,780       60,780
   15950  ADMINISTRATION AND SUPPORT                            598,634      598,634      598,634      598,634
   16000  EDUCATION BENEFITS                                      7,147        7,147        7,147        7,147
                                                           -----------------------------------------------------
   16100    TOTAL, BUDGET ACTIVITY 2                            761,666      761,666      761,666      761,666
                                                           =====================================================
   161PERSONNEL UNDEREXECUTION                              ...........       -3,100  ...........       -3,100
   161PAY RAISE INCREASE                                    ...........  ...........  ...........        4,112
                                                           -----------------------------------------------------
   16150    TOTAL, NATIONAL GUARD PERSONNEL, AIR FORCE        1,376,097    1,372,997    1,376,097    1,377,109
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Undistributed:
    16120 Personnel Underexecution......................          -3,100
    16130 Pay Raise Increase............................           4,112

                      air national guard engineers

      The conferees direct the Secretary of the Air Force to 
report no later than March 1, 1999, on how Air National Guard 
and Air Force Reserve civil engineering personnel are utilized 
in the war plans. The report should have the concurrence or 
view of the Chief of the National Guard Bureau and the Chief of 
the Air Force Reserve.

                  TITLE II--OPERATION AND MAINTENANCE

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                             Budget         House        Senate      Conference
----------------------------------------------------------------------------------------------------------------
   50000               RECAPITULATION
   500O & M, ARMY                                        17,223,063    16,936,503    17,212,463    17,185,623
   50100  TRANSFER--STOCKPILE                               (50,000)      (50,000)      (50,000)      (50,000)
   50110  TRANSFER TO QUALITY OF LIFE ENHANCEMENTS      ............  ............    (-130,000)  ............
   50120  TRANSFER TO PENTAGON RENOVATION TRANSFER      ............  ............     (-96,000)     (-96,000)
           FUND
   501O & M, NAVY                                        21,877,202    21,638,999    21,813,315    21,872,399
   50200  TRANSFER--STOCKPILE                               (50,000)      (50,000)      (50,000)      (50,000)
   50210  TRANSFER TO QUALITY OF LIFE ENHANCEMENTS      ............  ............     (-48,000)  ............
   50220  TRANSFER TO PENTAGON RENOVATION TRANSFER      ............  ............     (-32,087)     (-32,087)
           FUND
   502O & M, MARINE CORPS                                 2,523,703     2,585,118     2,576,190     2,578,718
   50260  TRANSFER TO QUALITY OF LIFE ENHANCEMENTS      ............  ............     (-36,000)  ............
   50270  TRANSFER TO PENTAGON RENOVATION TRANSFER      ............  ............      (-9,513)      (-9,513)
           FUND
   503O & M, AIR FORCE                                   19,127,004    19,024,233    19,064,941    19,021,045
   50350  TRANSFER--STOCKPILE                               (50,000)      (50,000)      (50,000)      (50,000)
   50360  TRANSFER TO QUALITY OF LIFE ENHANCEMENT       ............  ............     (-50,000)  ............
   50370  TRANSFER TO PENTAGON RENOVATION TRANSFER      ............  ............     (-52,200)     (-52,200)
           FUND
   504O & M, DEFENSEWIDE                                 10,750,601    10,804,542    10,259,231    10,914,076
   50470  TRANSFER TO PENTAGON RENOVATION TRANSFER      ............  ............  ............     (-90,020)
           FUND
   505O & M, ARMY RESERVE                                 1,202,622     1,201,222     1,202,622     1,202,622
   505O & M, NAVY RESERVE                                   928,639       949,039       928,639       957,239
   506O & M, MARINE CORPS RESERVE                           114,593       119,093       114,593       117,893
   506O & M, AIR FORCE RESERVE                            1,744,696     1,735,996     1,744,696     1,747,696
   507O & M, ARMY NATIONAL GUARD                          2,436,815     2,570,315     2,661,815     2,678,015
   507O & M, AIR NATIONAL GUARD                           3,093,933     3,075,233     3,113,933     3,106,933
   507OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND         746,900       746,900       746,900       439,400
   507PENTAGON RENOVATION TRANSFER FUND                 ............  ............      279,820   ............
   507TRANSFER                                          ............  ............  ............     (279,820)
   508UNITED STATES COURT OF APPEALS FOR THE ARMED            7,324         7,324         7,324         7,324
       FORCES
   508ENVIRONMENTAL RESTORATION, ARMY                       377,640       342,640       370,640       370,640
   509ENVIRONMENTAL RESTORATION, NAVY                       281,600       281,600       274,600       274,600
   509ENVIRONMENTAL RESTORATION, AIR FORCE                  379,100       379,100       372,100       372,100
   510ENVIRONMENTAL RESTORATION, DEFENSE-WIDE                26,091        26,091        23,091        26,091
   510ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE      195,000       195,000       225,000       225,000
       SITES
   512OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID         63,311        56,111        50,000        50,000
   513FORMER SOVIET UNION THREAT REDUCTION                  442,400       417,400       440,400       440,400
   513CONTINGENCY OPERATIONS MWR FUND                   ............  ............       50,000   ............
   514QUALITY OF LIFE ENHANCEMENTS, DEFENSE             ............      850,000   ............      455,000
   514TRANSFER                                          ............  ............     (264,000)  ............
                                                       ---------------------------------------------------------
   51600    GRAND TOTAL, O & M                           83,542,237    83,942,459    83,532,313    84,042,814
   516TRANSFERS                                            (150,000)     (150,000)    (-129,820)     (150,000)
                                                       ---------------------------------------------------------
   51700    TOTAL FUNDS AVAILABLE, O & M                 83,692,237    84,092,459    83,402,493    84,192,814
----------------------------------------------------------------------------------------------------------------

                           military readiness

      The conferees agree with the concerns delineated in 
Section 8160 of the Senate-passed fiscal year 1999 Defense 
Appropriations bill, and the concerns expressed in the report 
accompanying the House-passed fiscal year 1999 Defense 
Appropriations bill with regards to the indications of 
declining readiness within the Military Services.
      Accordingly, the conferees direct the Secretary of 
Defense to submit a report to the congressional defense 
committees not later than June 1, 1999, on the readiness of the 
Armed Forces of the United States. The Secretary shall include 
in the report detailed information on each of the following 
issues: (1) An assessment of current force structure and its 
sufficiency to execute the National Security Strategy; (2) A 
service-by-service outline of the force structure expected to 
be committed to a major regional contingency as envisioned in 
the National Security Strategy; (3) A comparison of the force 
structure outlined in item (2) with the service-by-service 
order of battle in Desert Shield/Desert Storm as a 
representative recent major regional conflict; (4) An 
assessment of the force structure and projected defense 
appropriations increases necessary to execute the National 
Security Strategy of the United States assuming current 
projected ground force levels assigned to the peacekeeping 
mission in Bosnia are unchanged; (5) A discussion of the United 
States ground, naval and air force levels in Bosnia that can be 
sustained without impacting the ability of the Armed Forces to 
execute the National Security Strategy assuming no increase in 
force structure or defense appropriations during the period in 
which forces are assigned to Bosnia; and (6) A complete 
assessment of recent trends in the measured readiness of United 
States forces with a focus on current manning shortfalls, 
recent declines in aviation mission capable rates, and below 
standard levels of ground forces training.

                operation and maintenance reprogrammings

      The conferees agree that proposed transfers of funds 
between O-1 budget activities in excess of $15,000,000 are 
subject to normal, prior approval reprogramming procedures. In 
addition, due to continuing concerns about force readiness and 
the diversion of Operation and Maintenance funds, the conferees 
agree that the Department should provide written notification 
to the congressional defense committees for the cumulative 
value of any and all transfers in excess of $15,000,000 from 
the following budget activities and subactivity group 
categories:
Operation and Maintenance, Army
      Land Forces: Divisions, Corps combat forces, Corps 
support forces, Echelon above corps forces, Land forces 
operations support; Land Forces Readiness: Land forces depot 
maintenance; Logistics operations: Ammunition management.
Operation and Maintenance, Navy
      Air Operations: Mission and other flight operations, 
Fleet air training, Aircraft depot maintenance; Ship 
Operations: Mission and other ship operations, Ship operational 
support and training, Intermediate maintenance, Ship depot 
maintenance.
Operation and Maintenance, Marine Corps
      Expeditionary Forces: Operational forces, depot 
maintenance.
Operation and Maintenance, Air Force
      Air Operations: Primary combat forces, Primary combat 
weapons, Air operations training, Depot maintenance; Mobility 
Operations: Airlift operations, Depot maintenance, Payments to 
the transportation business area; Basic Skills and Advanced 
Training: Depot maintenance; Logistics Operations: Depot 
maintenance.
      Further, the Department should follow prior approval 
reprogramming procedures for transfers in excess of $15,000,000 
out of the following budget subactivities.
Operation and Maintenance, Army
      Depot maintenance
Operation and Maintenance, Navy
      Aircraft depot maintenance,
      Ship depot maintenance
Operation and Maintenance, Marine Corps
      Depot maintenance
Operation and Maintenance, Air Force
      Air Operations, Depot maintenance,
      Mobility Operations, Depot maintenance,
      Basic Skills and Advanced Training, Depot maintenance, 
and
      Logistics Operations, Depot maintenance.

            operation and maintenance budget execution data

      The conferees support the position expressed in the House 
report accompanying the Defense Appropriations bill for fiscal 
year 1999 requiring the Department of Defense to provide the 
congressional defense committees with quarterly budget 
execution data. Such data should be provided not later than 
forty-five days past the close of each quarter of the fiscal 
year, and should be provided for each O-1 budget activity, 
activity group, and subactivity for each of the active, 
defense-wide, reserve and national guard components. For each 
O-1 budget activity, activity group and subactivity, these 
reports should include: the budget request and actual 
obligations; the DoD distribution of unallocated congressional 
adjustments to the budget request; all adjustments made by DoD 
during the process of rebaselining the O&M accounts; all 
adjustments resulting from below threshold reprogrammings; and 
all adjustments resulting from prior approval reprogramming 
requests.
      In addition, the conferees require that the Department of 
Defense provide semiannual written notifications to the 
congressional defense committees which summarize Operation and 
Maintenance budget execution to include the effect of 
rebaselining procedures, other below threshold reprogrammings, 
and prior approval reprogrammings. The conferees further direct 
that the Department of Defense provide the House and Senate 
Committees on Appropriations written notification 30 days prior 
to executing procedures to rebaseline the Operation and 
Maintenance accounts.

                   pentagon renovation transfer fund

      The conferees agree to Senate language which establishes 
the Pentagon Renovation Transfer Fund, totaling $279,820,000 by 
transfer from the active component and Defense-Wide Operation 
and Maintenance accounts.

             dod outsourcing and privatization initiatives

      The conferees are aware of large scale efforts by DoD to 
privatize many of its support and infrastructure functions in 
order to reduce costs and free up resources for readiness and 
modernization. For example, the Defense Reform Initiative 
projected that DoD could save $6 billion from competing 150,000 
civilian positions over the next five years. However, the 
conferees harbor significant concerns about DoD's privatization 
strategy, primarily due to the risk of building unrealistic 
savings estimates into the budget request. Specifically, these 
concerns include: (1) uncertainty as to the criteria used to 
select activities or functions as candidates for outsourcing; 
(2) the apparent lack of any method to validate savings assumed 
in DoD budget estimates; and, (3) the lack of any systems or 
methods to assess the impact of outsourcing on the readiness or 
combat power of DoD forces. Accordingly, the conferees direct 
that the Secretary of Defense submit a report, not later than 
March 31, 1999, which provides a detailed assessment of the 
results of DoD's privatization strategy to date. The report 
shall specify those functions or activities selected for 
outsourcing, and the criteria used to select these functions or 
activities. The report shall also detail the net savings 
achieved by outsourcing in fiscal years 1996-1998. This element 
of the report shall also include estimates of the number of 
contractor workyears compared to the number of civilian 
workyears required to perform functions which have been 
privatized.

                   lightweight maintenance enclosures

      The conferees direct that $5,000,000 of the funds made 
available in Operation and Maintenance, Marine Corps be used 
only for the acquisition of lightweight maintenance enclosures.

                     competitive banking procedures

      It is the conferees' intent that the provision of banking 
services provided by any bank or credit union on military 
installations and at facilities in the United States shall 
include the broad range of services including at least all of 
the following: the receipt of money for deposit, check or draft 
cashing services, the origination of loans or other extensions 
of credit, the issuance of promissory notes, and the provision 
of electronic banking and automated teller machines. The 
conferees direct the Department of Defense to submit a report 
to the Committees on Appropriations by February 1, 1999, on the 
DoD and services policies and procedures for provision of 
banking services on the basis of full and open competition.

                report on security in the taiwan strait

      On or before February 1, 1999, the Department of Defense 
shall provide to Congress a report, in both classified and 
unclassified form, detailing the security situation in the 
Taiwan Strait. Such report shall include an analysis of the 
military forces facing Taiwan from the People's Republic of 
China, evaluating recent additions to the offensive military 
capabilities of the People's Republic of China. It should also 
assess new challenges to the deterrent forces of the Republic 
of China on Taiwan, consistent with the commitments made by the 
United States in the Taiwan Relations Act, Public Law 96-8.

                    Operation and Maintenance, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
     100OPERATION AND MAINTENANCE, ARMY
     BUDGET ACTIVITY 1: OPERATING FORCES:
     20LAND FORCES:
     250 DIVISIONS                               1,091,232        1,152,432        1,098,732        1,172,932
     300 CORPS COMBAT FORCES                       299,739          299,739          299,739          299,739
     350 CORPS SUPPORT FORCES                      316,361          316,361          316,361          316,361
     400 ECHELON ABOVE CORPS FORCES                434,579          434,579          434,579          434,579
     450 LAND FORCES OPERATIONS SUPPORT            824,557          824,557          824,557          824,557
     50LAND FORCES READINESS:
     550 FORCE READINESS OPERATIONS                973,814          973,814          974,814          974,814
          SUPPORT
     600 LAND FORCES SYSTEMS READINESS             375,038          375,038          375,038          375,038
     650 LAND FORCES DEPOT MAINTENANCE             570,723          620,723          570,723          590,723
     70LAND FORCES READINESS SUPPORT:
     750 BASE SUPPORT                            2,332,231        2,549,179        2,332,231        2,334,231
     800 MAINTENANCE OF REAL PROPERTY              641,651          641,651          641,651          641,651
     850 MANAGEMENT AND OPERATIONAL                110,538          110,538          110,538          110,538
          HEADQUARTERS
     900 UNIFIED COMMANDS                           71,990           71,990           71,990           71,990
     950 MISCELLANEOUS ACTIVITIES                   63,478           63,478           63,478           63,478
                                           ---------------------------------------------------------------------
    1045   TOTAL, BUDGET ACTIVITY 1              8,105,931        8,434,079        8,114,431        8,210,631
                                           =====================================================================
    1BUDGET ACTIVITY 2: MOBILIZATION:
    110MOBILITY OPERATIONS:
    1200 STRATEGIC MOBILIZATION                    314,541          314,541          314,541          314,541
    1250 ARMY PREPOSITIONED STOCKS                 165,349          165,349          165,349          165,349
    1300 INDUSTRIAL PREPAREDNESS                    78,645           58,845           78,645           58,845
    1325 MAINTENANCE OF REAL PROPERTY               66,100           66,100           66,100           66,100
                                           ---------------------------------------------------------------------
    1350   TOTAL, BUDGET ACTIVITY 2                624,635          604,835          624,635          604,835
                                           =====================================================================
    1BUDGET ACTIVITY 3: TRAINING AND
      RECRUITING:
    145ACCESSION TRAINING:
    1500 OFFICER ACQUISITION                        63,580           63,580           62,180           62,180
    1550 RECRUIT TRAINING                           14,264           14,264           14,264           14,264
    1600 ONE STATION UNIT TRAINING                  14,909           14,909           14,909           14,909
    1650 RESERVE OFFICER TRAINING CORPS            130,270          130,270          131,270          131,270
          (ROTC)
    1700 BASE SUPPORT (ACADEMY ONLY)                72,999           78,631           72,999           72,999
    1750 MAINTENANCE OF REAL PROPERTY               42,979           42,979           42,979           42,979
          (ACADEMY ONLY)
    180BASIC SKILL/ADVANCE TRAINING:
    1850 SPECIALIZED SKILL TRAINING                215,964          215,964          215,964          215,964
    1900 FLIGHT TRAINING                           226,501          226,501          226,501          226,501
    1950 PROFESSIONAL DEVELOPMENT                  192,720           88,920          185,020           77,020
          EDUCATION
    2000 TRAINING SUPPORT                          488,799          488,799          488,799          488,799
    2050 BASE SUPPORT (OTHER TRAINING)             782,265          842,622          782,265          782,265
    2100 MAINTENANCE OF REAL PROPERTY              258,927          258,927          258,927          258,927
          (OTHER TRAINING)
    215RECRUITING/OTHER TRAINING:
    2200 RECRUITING AND ADVERTISING                234,154          234,154          234,154          234,154
    2250 EXAMINING                                  71,593           71,593           71,593           71,593
    2300 OFF-DUTY AND VOLUNTARY EDUCATION          100,203          101,203          100,203          100,203
    2350 CIVILIAN EDUCATION AND TRAINING            73,517           73,517           73,517           73,517
    2400 JUNIOR ROTC                                73,423           73,423           73,423           73,423
    2450 BASE SUPPORT (RECRUITING LEASES)          178,496          178,496          178,496          178,496
                                           ---------------------------------------------------------------------
    2500   TOTAL, BUDGET ACTIVITY 3              3,235,563        3,198,752        3,227,463        3,119,463
                                           =====================================================================
    2BUDGET ACTIVITY 4: ADMIN &
      SERVICEWIDE ACTIVITIES:
    260SECURITY PROGRAMS:
    2650 SECURITY PROGRAMS                         404,340          404,340          404,340          404,340
    270LOGISTICS OPERATIONS:
    2750 SERVICEWIDE TRANSPORTATION                398,473          398,473          398,473          398,473
    2800 CENTRAL SUPPLY ACTIVITIES                 370,824          370,824          370,824          370,824
    2850 LOGISTIC SUPPORT ACTIVITIES               336,403          342,403          336,403          342,403
    2900 AMMUNITION MANAGEMENT                     400,299          400,299          400,299          400,299
    295SERVICEWIDE SUPPORT:
    3000 ADMINISTRATION                            304,679          305,679          305,679          306,679
    3050 SERVICEWIDE COMMUNICATIONS                606,379          566,379          606,379          606,379
    3100 MANPOWER MANAGEMENT                       142,081          142,081          142,081          142,081
    3150 OTHER PERSONNEL SUPPORT                   150,483          150,483          150,483          150,483
    3200 OTHER SERVICE SUPPORT                     618,384          618,384          525,384          621,384
    3250 ARMY CLAIMS ACTIVITIES                    118,886          118,886          118,886          118,886
    3300 REAL ESTATE MANAGEMENT                     68,815           68,815           68,815           68,815
    3350 BASE SUPPORT                              700,689          754,752          700,689          708,689
    3375 COMMISSARY OPERATIONS                     338,400          338,400          338,400          338,400
    3400 MAINTENANCE OF REAL PROPERTY               82,578           82,578           88,078           88,078
    355SUPPORT OF OTHER NATIONS:
    3600 INTERNATIONAL MILITARY                    227,377          227,377          227,377          227,377
          HEADQUARTERS
    3650 MISC SUPPORT OF OTHER NATIONS              37,844           34,144           37,844           34,314
                                           ---------------------------------------------------------------------
    3700   TOTAL, BUDGET ACTIVITY 4              5,306,934        5,324,297        5,220,434        5,327,904
                                           =====================================================================
    3CLASSIFIED PROGRAMS UNDISTRIBUTED      ...............           4,500           -2,200            3,750
    3CIVILIAN PERSONNEL UNDERSTRENGTH       ...............        -164,000         -120,000          -62,700
    3GENERAL REDUCTION, NATIONAL DEFENSE           -50,000          -50,000          -50,000          -50,000
      STOCKPILE FUND
    3FOREIGN CURRENCY FLUCTUATION           ...............        -139,700          -81,300   ...............
    3BASE SUPPORT                           ...............  ...............         185,000          204,000
    3TDY EXPENSES                           ...............         -31,600   ...............         -31,600
    3MEMORIAL EVENTS                        ...............             400   ...............             400
    3HEADQUARTERS AND ADMIN ACTIVITIES      ...............         -38,500   ...............  ...............
    3RENTS                                  ...............          -7,000   ...............          -7,000
    3COMMUNICATIONS PURCHASES               ...............          -4,400   ...............          -4,400
    3FUEL REPRICING                         ...............         -22,300          -36,000   ...............
    3CONTRACT AND ADVISORY SERVICES         ...............         -40,200   ...............  ...............
    3MISC EQUIPMENT                         ...............         -20,000   ...............         -15,000
    3CRIMINAL INVESTIGATORS COMPUTERS &     ...............         -18,000   ...............         -18,000
      TRAINING EFFICIENCY
    3ADP LEGACY SYSTEM EFFICIENCIES         ...............         -96,660   ...............         -96,660
    3REAL PROPERTY MAINTENANCE              ...............  ...............         130,000   ...............
    4CONSEQUENCE MANAGEMENT                 ...............           2,000   ...............  ...............
                                           ---------------------------------------------------------------------
    4100 TOTAL, OPERATION AND MAINTENANCE,      17,223,063       16,936,503       17,212,463       17,185,623
          ARMY
    4TRANSFER                                      (50,000)         (50,000)         (50,000)         (50,000)
    4TRANSFER TO QUALITY OF LIFE            ...............  ...............       (-130,000)  ...............
      ENHANCEMENTS
    4TRANSFER TO PENTAGON RENOVATION        ...............  ...............        (-96,000)        (-96,000)
      TRANSFER FUND
                                           ---------------------------------------------------------------------
    4200   TOTAL FUNDING AVAILABLE             (17,273,063)     (16,986,503)     (17,036,463)     (17,139,623)
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    250 Readiness Training-National Training Center 
      (NTC).............................................          60,200
    250 Soldier life support systems....................          18,000
    250 Cold weather boots; 2ID.........................           2,000
    250 Parachute maintenance and repair................           1,000
    250 Ultra lightweight camouflage net system.........             500
    550 Fort Chaffee Training Center....................           1,000
    650 Depot Maintenance...............................          20,000
    750 Ft Irwin, George AFB............................           2,000
Budget Activity 2: Mobilization:
    1300 Industrial Preparedness........................         -19,800
Budget Activity 3: Training and Recruiting:
    1500 Service academies; foreign students............          -1,400
    1650 Air Battle Captain Program.....................           1,000
    1950 Foreign military students; Fort Leavenworth....             800
    1950 National Defense University consolidation......          -8,500
    1950 Defense Acquisition University.................        -108,000
Budget Activity 4: Administration and Servicewide 
    Activities:
    2850 Supercomputing Work............................           6,000
    3000 Advanced local emergency response team.........           1,000
    3000 Lewis & Clark..................................           1,000
    3200 Army conservation and ecosystem management.....           3,000
    3350 UC-35A Basing and Sustainment..................           8,000
    3400 Rock Island bridge repairs.....................           5,500
    3650 Program increase...............................             170
    3650 Misc Support to Other Nations..................          -3,700
Undistributed:
    3710 Classified Programs Undistributed..............           3,750
    3715 Civilian Personnel Underexecution..............         -62,700
    3775 Base support shortfalls........................         204,000
    3790 Temporary Duty Travel..........................         -31,600
    3835 Memorial Events................................             400
    3855 Rents..........................................          -7,000
    3865 Communications Purchases.......................          -4,400
    3895 Miscellaneous Equipment........................         -15,000
    3905 Criminal Investigators Computers & Training....         -18,000
    3925 ADP Legacy System efficiencies.................         -96,660

               domestic preparedness sustainment training

      The conferees direct that of the funds provided in 
Operation and Maintenance, Army, $1,500,000 be used only to 
commence establishment of a Domestic Preparedness Sustainment 
Training Center at Pine Bluff Arsenal, as recommended in Senate 
Report 105-200.

                             army arsenals

      The conferees are concerned about the effect of DoD's 
outsourcing and privatization initiatives on certain critical 
defense functions. Accordingly, the conferees direct that the 
Army provide 90 days prior notice to the congressional defense 
committees before awarding any new contracts pursuant to A-76 
related studies at Pine Bluff Arsenal, Pine Bluff, Arkansas; 
Rock Island Arsenal, Rock Island, Illinois; or Watervliet 
Arsenal, Watervliet, New York.

                rotary wing aircraft sustainment project

      The conferees direct that $3,500,000 shall be used for 
the rotary wing aircraft sustainment project at the Corpus 
Christi Army Depot, from within the funds provided in Operation 
and Maintenance, Army.

              army institute for professional development

      The conferees agree that of the funds provided for 
Operation and Maintenance, Army, $1,000,000 should be used only 
for the Army Institute for Professional Development.

                    Operation and Maintenance, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
    4250OPERATION AND MAINTENANCE, NAVY
    4BUDGET ACTIVITY 1: OPERATING FORCES:
    435AIR OPERATIONS:
    4400 MISSION AND OTHER FLIGHT                2,089,630        2,134,630        2,142,130        2,098,630
          OPERATIONS
    4450 FLEET AIR TRAINING                        751,533          751,533          751,533          751,533
    4500 INTERMEDIATE MAINTENANCE                   46,925           46,925           46,925           46,925
    4550 AIR OPERATIONS AND SAFETY SUPPORT          88,459           88,459           88,459           88,459
    4600 AIRCRAFT DEPOT MAINTENANCE                735,731          810,731          735,731          735,731
    4650 AIRCRAFT DEPOT OPERATIONS SUPPORT          20,249           20,249           20,249           20,249
    4700 BASE SUPPORT                              772,678          772,678          772,678          772,678
    4750 MAINTENANCE OF REAL PROPERTY              283,600          283,600          283,600          283,600
    580SHIP OPERATIONS:
    5850 MISSION AND OTHER SHIP OPERATIONS       1,987,873        1,987,873        1,987,873        1,987,873
    4900 SHIP OPERATIONAL SUPPORT AND              541,069          541,069          541,069          541,069
          TRAINING
    4950 INTERMEDIATE MAINTENANCE                  388,408          388,408          388,408          388,408
    5000 SHIP DEPOT MAINTENANCE                  1,947,424        2,037,424        1,977,424        1,977,424
    5050 SHIP DEPOT OPERATIONS SUPPORT           1,147,209        1,147,209        1,147,209        1,147,209
    5100 BASE SUPPORT                              832,789          832,789          832,789          832,789
    5150 MAINTENANCE OF REAL PROPERTY              248,601          248,601          248,601          248,601
    520COMBAT OPERATIONS/SUPPORT:
    5250 COMBAT COMMUNICATIONS                     234,450          234,450          234,450          234,450
    5300 ELECTRONIC WARFARE                          7,734            7,734            7,734            7,734
    5350 SPACE SYSTEMS AND SURVEILLANCE            138,271          138,271          138,271          138,271
    5400 WARFARE TACTICS                           134,014          134,014          140,014          140,014
    5450 OPERATIONAL METEOROLOGY AND               228,159          228,159          242,659          242,659
          OCEANOGRAPY
    5500 COMBAT SUPPORT FORCES                     444,072          444,072          444,072          444,072
    5550 EQUIPMENT MAINTENANCE                     170,937          171,937          170,937          171,937
    5600 DEPOT OPERATIONS SUPPORT                      694              694              694              694
    5650 BASE SUPPORT                              312,259          312,259          312,259          312,259
    5700 MAINTENANCE OF REAL PROPERTY               52,603           52,603           52,603           52,603
    575WEAPONS SUPPORT:
    5800 CRUISE MISSILE                            121,192          116,292          121,192          116,292
    5850 FLEET BALLISTIC MISSILE                   812,041          812,041          812,041          812,041
    5900 IN-SERVICE WEAPONS SYSTEMS                 61,598           61,598           61,598           61,598
          SUPPORT
    5950 WEAPONS MAINTENANCE                       389,469          394,469          419,469          419,469
    6000 BASE SUPPORT                              119,868          119,868          119,868          119,868
    6050 MAINTENANCE OF REAL PROPERTY               31,675           31,675           31,675           31,675
    610WORKING CAPITAL FUND SUPPORT:
    6150 NWCF SUPPORT                               43,300           43,300           43,300           43,300
                                           ---------------------------------------------------------------------
    6200   TOTAL, BUDGET ACTIVITY 1             15,184,514       15,395,614       15,317,514       15,270,114
                                           =====================================================================
    6BUDGET ACTIVITY 2: MOBILIZATION:
    630 READY RESERVE AND PREPOSITIONING
        FORCES:
    6350 SHIP PREPOSITIONING AND SURGE             428,775          428,775          434,775          432,775
    6ACTIVATIONS/INACTIVATIONS:
    6450 AIRCRAFT ACTIVATIONS/                         651              651            8,151            8,151
          INACTIVATIONS
    6500 SHIP ACTIVATIONS/INACTIVATIONS            511,976          511,976          511,976          511,976
    6MOBILIZATION PREPAREDNESS:
    6600 FLEET HOSPITAL PROGRAM                     23,496           23,496           23,496           23,496
    6650 INDUSTRIAL READINESS                       16,166           14,466           16,166           14,466
    6700 COAST GUARD SUPPORT                        17,229           17,229           17,229           17,229
                                           ---------------------------------------------------------------------
    6750   TOTAL, BUDGET ACTIVITY 2                998,293          996,593        1,011,793        1,008,093
                                           =====================================================================
    6BUDGET ACTIVITY 3: TRAINING AND
      RECRUITING:
    685ACCESSION TRAINING:
    6900 OFFICER ACQUISITION                        75,643           75,643           74,243           74,243
    6950 RECRUIT TRAINING                            4,556            4,556            4,556            4,556
    7000 RESERVE OFFICERS TRAINING CORPS            69,087           69,087           69,087           69,087
          (ROTC)
    7050 BASE SUPPORT                               57,036           57,036           57,036           57,036
    7100 MAINTENANCE OF REAL PROPERTY               81,371           81,371           81,371           81,371
    7BASIC SKILLS AND ADVANCED TRAINING:
    7200 SPECIALIZED SKILL TRAINING                237,916          237,916          237,916          237,916
    7250 FLIGHT TRAINING                           315,874          315,874          315,874          315,874
    7300 PROFESSIONAL DEVELOPMENT                   71,780           71,780           73,280           73,280
          EDUCATION
    7350 TRAINING SUPPORT                          138,319          145,319          138,319          145,319
    7400 BASE SUPPORT                              331,607          331,607          331,607          331,607
    7450 MAINTENANCE OF REAL PROPERTY               92,400           92,400           92,400           92,400
    7RECRUITING, AND OTHER TRAINING AND
      EDUCATION:
    7550 RECRUITING AND ADVERTISING                130,415          151,215          130,415          130,415
    7600 OFF-DUTY AND VOLUNTARY EDUCATION           74,669           74,669           74,669           74,669
    7650 CIVILIAN EDUCATION AND TRAINING            37,425           37,425           37,425           37,425
    7700 JUNIOR ROTC                                22,830           22,830           22,830           22,830
    7750 BASE SUPP0ORT                                 451              451              451              451
    7800 MAINTENANCE OF REAL PROPERTY                   61               61               61               61
                                           ---------------------------------------------------------------------
    7850   TOTAL, BUDGET ACTIVITY 3              1,741,440        1,769,240        1,743,540        1,748,540
                                           =====================================================================
    7BUDGET ACTIVITY 4: ADMIN. &
      SERVICEWIDE ACTIVITIES:
    795SERVICEWIDE SUPPORT:
    8000 ADMINISTRATION                            565,193          565,193          533,106          565,193
    8050 EXTERNAL RELATIONS                         21,456           21,456           21,456           21,456
    8100 CIVILIAN MANPOWER AND PERSON              140,247          103,847          140,247          122,247
          MANAGEMENT
    8150 MILITARY MANPOWER AND PERSON              125,125          125,125          125,125          125,125
          MANAGEMENT
    8200 OTHER PERSONNEL SUPPORT                   201,014          201,014          201,014          201,014
    8250 SERVICEWIDE COMMUNICATIONS                244,766          244,766          244,766          244,766
    8300 BASE SUPPORT                              228,046          228,046          228,046          228,046
    8400 MAINTENANCE OF REAL PROPERTY               44,827           44,827           44,827           44,827
    8425 COMMISSARY OPERATIONS                     255,000          255,000          255,000          255,000
    845LOGISTICS OPERATIONS AND TECHNICAL
        SUPPORT:
    8500 SERVICEWIDE TRANSPORTATION                144,245          144,245          144,245          144,245
    8550 PLANNING, ENGINEERING AND DESIGN          262,615          262,615          262,615          262,615
    8600 ACQUISITION AND PROGRAM                   473,159          475,659          473,159          475,659
          MANAGEMENT
    8650 AIR SYSTEMS SUPPORT                       280,437          280,437          280,437          280,437
    8700 HULL, MECHANICAL AND ELECTRICAL            55,467           55,467           55,467           55,467
          SUPPORT
    8750 COMBAT/WEAPONS SYSTEMS                     41,700           41,700           41,700           41,700
    8800 SPACE AND ELECTRONIC WARFARE               72,178           72,178           72,178           72,178
          SYSTEMS
    8850 BASE SUPPORT                              219,826          220,176          219,826          220,176
    8900 MAINTENANCE OF REAL PROPERTY               40,722           40,722           55,722           55,722
    895SECURITY PROGRAMS:
    9000 SECURITY PROGRAMS                         568,257          568,257          568,257          568,257
    9050 BASE SUPPORT                                8,814            8,814            8,814            8,814
    9100 MAINTENANCE OF REAL PROPERTY                1,426            1,426            1,426            1,426
    915SUPPORT OF OTHER NATIONS:
    9200 INTERNATIONAL HEADQUARTERS AND              8,435            8,435            8,435            8,435
          AGENCIES
                                           ---------------------------------------------------------------------
    9350   TOTAL, BUDGET ACTIVITY 4              4,002,955        3,969,405        3,987,868        4,003,805
                                           =====================================================================
    9CLASSIFIED PROGRAMS UNDISTRIBUTED      ...............          17,367              500           17,867
    9GENERAL REDUCTION, NATIONAL DEFENSE           -50,000          -50,000          -50,000          -50,000
      STOCKPILE FUND
    9FOREIGN CURRENCY FLUCTUATION           ...............         -15,900           -7,900   ...............
    9CIVILIAN PERSONNEL UNDERSTRENGTH       ...............         -95,000         -106,000          -14,300
    9BASE SUPPORT                           ...............  ...............          35,000           39,000
    9REAL PROPERTY MAINTENANCE              ...............  ...............          48,000   ...............
    9TDY EXPENSES                           ...............         -22,900   ...............         -22,900
    9HEADQUARTERS AND ADMIN ACTIVITIES      ...............         -32,900   ...............  ...............
    9EXCESS CARRY OVER (NCCOSC)             ...............         -52,000   ...............         -26,000
    9FUEL REPRICING                         ...............        -108,700         -167,000   ...............
    9FEDERAL EXCISE/STATE TAXES FOR FUELS   ...............          -3,000   ...............          -3,000
    9CONTRACT AND ADVISORY SERVICES         ...............         -31,000   ...............  ...............
    9MISC EQUIPMENT                         ...............         -15,000   ...............         -15,000
    9ADP LEGACY SYSTEMS EFFICIENCIES        ...............         -87,820   ...............         -87,820
    9NAVY ENVIRONMENTAL LEADERSHIP PROGRAM  ...............           4,000   ...............           3,000
    9EXECUTIVE EDUCATION DEMONSTRATION      ...............           1,000   ...............           1,000
      PROJECT
                                           ---------------------------------------------------------------------
    9750 TOTAL, OPERATION AND MAINTENANCE,      21,877,202       21,638,999       21,813,315       21,872,399
          NAVY
                                           =====================================================================
    9TRANSFER                                      (50,000)         (50,000)         (50,000)         (50,000)
    9TRANSFER TO QUALITY OF LIFE            ...............  ...............        (-48,000)  ...............
      ENHANCEMENTS
    9TRANSFER TO PENTAGON RENOVATION        ...............  ...............        (-32,087)        (-32,087)
      TRANSFER FUND
                                           ---------------------------------------------------------------------
    9850 TOTAL FUNDING AVAILABLE               (21,927,202)     (21,688,999)     (21,783,228)     (21,890,312)
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    4400 ALQ-165 maintenance and repair.................           9,000
    5000 Ship depot maintenance.........................          16,000
    5000 Shipyard Apprentice Program....................          14,000
    5400 PMRF...........................................           6,000
    5450 National Oceanography Partnering Program.......           7,500
    5450 Navy Meteorology and Oceanography Command......           7,000
    5550 Reverse Osmosis Desalinators...................           1,000
    5800 Tactical Tomahawk..............................          -4,900
    5950 Tomahawk recertification.......................          15,000
    5950 Mk-45 overhaul line............................          10,000
    5950 CIWS overhaul..................................           5,000
Budget Activity 2: Mobilization:
    6350 Dredging support inactive Reserve fleet........           4,000
    6450 Ship disposal initiative.......................           7,500
    6650 Industrial Preparedness........................          -1,700
Budget Activity 3: Training and Recruiting:
    6900 Service academies; foreign students............          -1,400
    7300 Experimental MBA Program.......................           1,500
    7350 Interactive Distance Learning Courses--
      Electricity & Electronics.........................           4,000
    7350 CNET...........................................           3,000
Budget Activity 4: Administration and Servicewide 
    Activities:
    8100 Personnel Management program growth............         -18,000
    8250 NISE-East......................................           1,000
    8600 ATIS...........................................           2,500
    8850 Removal of Docks at Sound Lab..................             350
    8900 Adak facilities remediation and disposal.......          15,000
Undistributed:
    9360 Classified Programs Undistributed..............          17,867
    9390 Civilian Personnel Underexecution..............         -14,300
    9395 Base support shortfalls........................          39,000
    9430 Temporary Duty Travel..........................         -22,900
    9470 Excess Carryover (NCCOSC)......................         -26,000
    9490 Federal Excise/State Sales Tax for fuels.......          -3,000
    9510 Miscellaneous Equipment........................         -15,000
    9520 ADP Legacy System efficiencies.................         -87,820
    9540 Navy Environmental Leadership Program (East 
      Coast)............................................           3,000
    9590 Executive Education Demonstration Project......           1,000

                        ship disposal initiative

      The conferees concur with the Senate allocation of 
$7,500,000 for a ship disposal initiative. This program is not 
related to Section 8124 of this Act regarding ship scrapping.

                  nas lemoore quality of life projects

      The conferees agree that the Navy must place priority on 
constructing and upgrading quality of life facilities at Naval 
Air Station Lemoore. The lack of adequate support facilities at 
this location is having an adverse impact on F/A-18 pilot 
retention rates. The conferees direct the Secretary of the Navy 
to review the five-year plan for quality of life projects at 
this location and take appropriate actions to add new projects 
to the plan and to accelerate implementation of all quality of 
life projects at this location.

                Operation and Maintenance, Marine Corps

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
    9900OPERATION AND MAINTENANCE, MARINE
                      CORPS
    99BUDGET ACTIVITY 1: OPERATING FORCES:
   10000EXPEDITIONARY FORCES:
   10050  OPERATIONAL FORCES                       375,531          400,531          389,831          389,831
   10100  FIELD LOGISTICS                          221,693          221,693          221,693          221,693
   10150  DEPOT MAINTENANCE                         78,713           99,413           78,713           99,413
   10200  BASE SUPPORT                             692,716          701,539          692,716          692,716
   10250  MAINTENANCE OF REAL PROPERTY             292,216          292,216          292,216          292,216
   10300USMC PREPOSITIONING:
   10350  MARITIME PREPOSITIONING                   81,325           81,325           81,325           81,325
   10400  NORWAY PREPOSITIONING                      4,328            4,328            4,328            4,328
                                           ---------------------------------------------------------------------
   10450    TOTAL, BUDGET ACTIVITY 1             1,746,522        1,801,045        1,760,822        1,781,522
                                           =====================================================================
   105BUDGET ACTIVITY 3: TRAINING AND
       RECRUITING:
   10550ACCESSION TRAINING:
   10600  RECRUIT TRAINING                          10,202           10,202           10,202           10,202
   10650  OFFICER ACQUISITION                          289              289              289              289
   10700  BASE SUPPORT                              53,526           54,208           53,526           53,526
   10750  MAINTENANCE OF REAL PROPERTY              17,292           17,292           17,292           17,292
   10800BASIC SKILLS AND ADVANCED
         TRAINING:
   10850  SPECIALIZED SKILLS TRAINING               28,269           28,269           28,269           28,269
   10900  FLIGHT TRAINING                              161              161              161              161
   10950  PROFESSIONAL DEVELOPMENT                   6,478            6,478            6,478            6,478
           EDUCATION
   11000  TRAINING SUPPORT                          81,338           81,338           88,338           87,338
   11050  BASE SUPPORT                              55,771           56,481           55,771           55,771
   11100  MAINTENANCE OF REAL PROPERTY              24,009           24,009           24,009           24,009
   11150RECRUITING AND OTHER TRAINING
         EDUCATION:
   11200  RECRUITING AND ADVERTISING                80,798           92,798           80,798           80,798
   11250  OFF-DUTY AND VOLUNTARY EDUCATION          15,016           15,016           15,016           15,016
   11300  JUNIOR ROTC                                9,201           10,616            9,201           10,616
   11350  BASE SUPPORT                               8,496            8,496            8,496            8,496
   11400  MAINTENANCE OF REAL PROPERTY               2,440            2,440            2,440            2,440
                                           ---------------------------------------------------------------------
   11450    TOTAL, BUDGET ACTIVITY 3               393,286          408,093          400,286          400,701
                                           =====================================================================
   11150RECRUITING AND OTHER TRAINING
         EDUCATION:
   11200  RECRUITING AND ADVERTISING                80,798           92,798           80,798           80,798
   11250  OFF-DUTY AND VOLUNTARY EDUCATION          15,016           15,016           15,016           15,016
   11300  JUNIOR ROTC                                9,201           10,616            9,201           10,616
   11350  BASE SUPPORT                               8,496            8,496            8,496            8,496
   11400  MAINTENANCE OF REAL PROPERTY               2,440            2,440            2,440            2,440
                                           ---------------------------------------------------------------------
   11450    TOTAL, BUDGET ACTIVITY 3               393,286          408,093          400,286          400,701
                                           =====================================================================
   115BUDGET ACTIVITY 4: ADMIN &
       SERVICEWIDE ACTIVITIES:
   11550SERVICEWIDE SUPPORT:
   11650  SPECIAL SUPPORT                          224,668          224,668          215,155          224,668
   11700  SERVICEWIDE TRANSPORTATION                29,630           29,630           29,630           29,630
   11750  ADMINISTRATION                            26,509           26,509           26,509           26,509
   11800  BASE SUPPORT                              14,557           14,742           14,557           14,557
   11850  MAINTENANCE OF REAL PROPERTY               1,931            1,931            1,931            1,931
   11875  COMMISSARY OPERATIONS                     86,600           86,600           86,600           86,600
                                           ---------------------------------------------------------------------
   11900    TOTAL, BUDGET ACTIVITY 4               383,895          384,080          374,382          383,895
                                           =====================================================================
   119FOREIGN CURRENCY FLUCTUATION          ...............          -2,700           -2,300   ...............
   119FUEL PRICING DIFFERENTIAL             ...............  ...............          -8,000   ...............
   119REAL PROPERTY MAINTENANCE             ...............  ...............          36,000   ...............
   119BASE SUPPORT                          ...............  ...............          15,000           18,000
   119TDY EXPENSES                          ...............            -400   ...............            -400
   119MISC EQUIPMENT                        ...............          -5,000   ...............          -5,000
                                           ---------------------------------------------------------------------
   12300  TOTAL, OPERATION AND                   2,523,703        2,585,118        2,576,190        2,578,718
           MAINTENANCE, MARINE CORPS
                                           =====================================================================
   123TRANSFER TO QUALITY OF LIFE           ...............  ...............        (-36,000)  ...............
       ENHANCEMENTS
                                           ---------------------------------------------------------------------
   123TRANSFER TO PENTAGON RENOVATION       ...............  ...............         (-9,513)         (-9,153)
       TRANSFER FUND
                                           ---------------------------------------------------------------------
   12400  TOTAL FUNDING AVAILABLE               (2,523,703)      (2,585,118)      (2,530,677)      (2,569,205)
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    10050 Initial Issue Gear............................          12,600
    10050 NBC defense equipment.........................           1,700
    10150 Depot Maintenance.............................          20,700
Budget Activity 3: Training and Recruiting:
    11000 Distance learning.............................           6,000
    11300 Marine Corps Junior ROTC......................           1,415
Undistributed:
    11945 Base support shortfalls.......................          18,000
    11965 Temporary Duty Travel.........................            -400
    11975 Miscellaneous Equipment.......................          -5,000

                     marine corps depot maintenance

      The conferees are concerned about the substantial 
reduction in the Marine Corps depot maintenance budget from 
fiscal year 1998 to 1999 and the impact that this will have on 
the backlog of Marine Corps equipment. The conferees are also 
concerned that the budgeted depot maintenance program may have 
caused the Marine Corps to prematurely consider initiating 
reductions-in-force among its civilian personnel at the Marine 
Corps Logistics Base at Barstow. Accordingly, the conferees 
agree to increase funding for the Marine Corps depot 
maintenance program by $20,700,000 above the budget request to 
address this shortfall, and hereby direct the Marine Corps to 
include adequate funding in future budget submissions.

                  Operation and Maintenance, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
   124OPERATION AND MAINTENANCE, AIR FORCE
   125BUDGET ACTIVITY 1: OPERATING FORCES:
   12550AIR OPERATIONS:
   12600  PRIMARY COMBAT FORCES                  2,311,299        2,427,799        2,461,399        2,355,399
   12650  PRIMARY COMBAT WEAPONS                   236,147          236,147          234,347          234,347
   12700  COMBAT ENHANCEMENT FORCES                196,036          196,036          196,036          196,036
   12750  AIR OPERATIONS TRAINING                  562,839          562,839          567,939          567,939
   12775  DEPOT MAINTENANCE                      1,022,087        1,068,366        1,022,087        1,035,387
   12800  COMBAT COMMUNCIATIONS                    958,706          958,706          958,706          958,706
   12850  BASE SUPPORT                           1,538,126        1,620,152        1,538,126        1,538,126
   12900  MAINTENANCE OF REAL PROPERTY             575,656          575,656          575,656          575,656
   12950COMBAT RELATED OPERATIONS:
   13000  GLOBAL C3I AND EARLY WARNING             669,379          669,379          669,379          669,379
   13050  NAVIGATION/WEATHER SUPPORT               118,337          118,337          118,337          118,337
   13100  OTHER COMBAT OPS SUPPORT                 221,593          222,821          221,593          222,821
           PROGRAMS
   13150  JCS EXERCISES                             30,521           30,521           30,521           30,521
   13200  MANAGEMENT/OPERATIONAL                   117,540          117,540          117,540          117,540
           HEADQUARTERS
   13250  TACTICAL INTEL AND OTHER SPECIAL         227,980          227,980          227,980          227,980
           ACTIVITIES
   13300SPACE OPERATIONS:
   13350  LAUNCH FACILITIES                        221,046          221,046          216,046          216,046
   13400  LAUNCH VEHICLES                          102,064          102,064          102,064          102,064
   13450  SPACE CONTROL SYSTEMS                    246,940          246,940          257,940          253,940
   13500  SATELLITE SYSTEMS                         36,152           36,152           36,152           36,152
   13550  OTHER SPACE OPERATIONS                    85,292           85,292           90,292           90,292
   13600  BASE SUPPORT                             309,406          325,906          309,406          309,406
   13650  MAINTENANCE OF REAL PROPERTY             122,525          122,525          122,525          122,525
                                           ---------------------------------------------------------------------
   13700    TOTAL, BUDGET ACTIVITY 1             9,909,671       10,172,204       10,074,071        9,978,599
                                           =====================================================================
   137BUDGET ACTIVITY 2: MOBILIZATION:
   13800MOBILITY OPERATIONS:
   13850  AIRLIFT OPERATIONS                     1,326,774        1,383,774        1,326,774        1,326,774
   13900  AIRLIFT OPERATIONS C3I                    21,676           21,676           21,676           21,676
   13950  MOBILIZATION PREPAREDNESS                134,807          111,107          136,607          121,107
   13975  DEPOT MAINTENANCE                        316,485          330,815          316,485          316,485
   14000  PAYMENTS TO TRANSPORTATION               470,000          470,000          470,000          470,000
           BUSINESS AREA
   14050  BASE SUPPORT                             390,876          411,721          390,876          390,876
   14100  MAINTENANCE OF REAL PROPERTY             148,331          148,331          148,331          148,331
                                           ---------------------------------------------------------------------
   14150    TOTAL, BUDGET ACTIVITY 2             2,808,949        2,877,424        2,810,749        2,795,249
                                           =====================================================================
   142BUDGET ACTIVITY 3: TRAINING AND
       RECRUITING:
   14250ACCESSION TRAINING:
   14300  OFFICER ACQUISITION                       57,679           57,679           56,279           56,279
   14350  RECRUIT TRAINING                           4,360            4,360            4,360            4,360
   14400  RESERVE OFFICER TRAINING CORPS            46,522           46,522           46,522           46,522
           (ROTC)
   14450  BASE SUPPORT (ACADEMIES ONLY)             58,828           61,965           58,828           58,828
   14500  MAINTENANCE OF REAL PROPERTY              37,655           37,655           37,655           37,655
           (ACADEMIES ONLY)
   14550BASIC SKILLS AND ADVANCED
         TRAINING:
   14600  SPECIALIZED SKILL TRAINING               215,477          218,477          215,477          218,477
   14650  FLIGHT TRAINING                          406,940          406,940          406,940          406,940
   14700  PROFESSIONAL DEVELOPMENT                  90,709           90,709           90,709           90,709
           EDUCATION
   14750  TRAINING SUPPORT                          65,742           65,742           65,742           65,742
   14775  DEPOT MAINTENANCE                         12,186           12,738           12,186           12,186
   14800  BASE SUPPORT (OTHER TRAINING)            370,961          370,744          370,961          370,961
   14850  MAINTENANCE OF REAL PROPERTY             102,238          102,238          102,238          102,238
           (OTHER TRAINING)
   14900RECRUITING, AND OTHER TRAINING AND
         EDUCATION:
   14950  RECRUITING AND ADVERTISING                54,775           54,775           54,775           54,775
   15000  EXAMINING                                  2,668            2,668            2,668            2,668
   15050  OFF DUTY AND VOLUNTARY EDUCATION          84,122           84,122           84,122           84,122
   15100  CIVILIAN EDUCATION AND TRAINING           61,124           61,124           61,124           61,124
   15150  JUNIOR ROTC                               26,557           26,557           26,557           26,557
                                           ---------------------------------------------------------------------
   15200    TOTAL, BUDGET ACTIVITY 3             1,698,543        1,725,015        1,697,143        1,700,143
                                           =====================================================================
   152BUDGET ACTIVITY 4: ADMIN &
       SERVICEWIDE ACTIVITIES:
   15300LOGISTICS OPERATIONS:
   15350  LOGISTICS OPERATIONS                     706,893          706,893          706,893          706,893
   15400  TECHNICAL SUPPORT ACTIVITIES             389,685          389,685          389,685          389,685
   15450  SERVICEWIDE TRANSPORTATION               196,178          196,178          196,178          196,178
   15475  DEPOT MAINTENANCE                         69,344           72,484           69,344           69,344
   15500  BASE SUPPORT                             916,165          953,863          916,165          916,165
   15550  MAINTENANCE OF REAL PROPERTY             257,685          257,685          257,685          257,685
   15600SERVICEWIDE ACTIVITIES:
   15650  ADMINISTRATION                           140,879          140,879          140,879          140,879
   15700  SERVICEWIDE COMMUNICATIONS               234,065          234,065          234,065          234,065
   15750  PERSONNEL PROGRAMS                       127,718          104,518          127,718          115,718
   15800  RESCUE AND RECOVERY SERVICES              48,466           48,466           48,466           48,466
   15900  ARMS CONTROL                              30,005           30,005           30,005           30,005
   15950  OTHER SERVICEWIDE ACTIVITIES             517,780          517,780          465,580          517,780
   16000  OTHER PERSONNEL SUPPORT                   31,828           31,828           31,828           31,828
   16050  CIVIL AIR PATROL CORPORATION              13,927           19,697           23,964           22,310
   16075  COMMISSARY OPERATIONS                    302,071          302,071          302,071          302,071
   16100  BASE SUPPORT                             180,221          189,832          180,221          185,221
   16150  MAINTENANCE OF REAL PROPERTY              26,067           26,067           26,067           26,067
   16200SECURITY PROGRAMS:
   16250  SECURITY PROGRAMS                        557,256          557,256          557,256          557,256
   16300SUPPORT TO OTHER NATIONS:
   16350  INTERNATIONAL SUPPORT                     13,608           13,608           13,608           13,608
                                           ---------------------------------------------------------------------
   16400    TOTAL, BUDGET ACTIVITY 4             4,759,841        4,792,860        4,717,678        4,761,224
                                           =====================================================================
   164CLASSIFIED PROGRAMS UNDISTRIBUTED     ...............          -1,500           -1,000            2,000
   164CIVILIAN PERSONNEL UNDERSTRENGTH      ...............  ...............         -83,600   ...............
   164GENERAL REDUCTION, NATIONAL DEFENSE          -50,000          -50,000          -50,000          -50,000
       STOCKPILE FUND
   174FOREIGN CURRENCY FLUCTUATION          ...............         -29,400          -19,200   ...............
   164INFORMATION RESOURCE MANAGEMENT       ...............  ...............          10,100           10,100
   164BASE SUPPORT                          ...............  ...............          35,000           39,000
   165REAL PROPERTY MAINTENANCE             ...............  ...............          50,000   ...............
   165TDY EXPENSES                          ...............         -77,500   ...............         -77,500
   165HEADQUARTERS AND ADMIN ACTIVITIES     ...............        -105,200   ...............  ...............
   165RENTS                                 ...............          -2,000   ...............          -2,000
   165COMMUNICATIONS PURCHASES              ...............         -13,600   ...............         -13,600
   165FUEL REPRICING                        ...............        -116,000         -176,000   ...............
   165CONTRACT AND ADVISORY SERVICES        ...............         -30,900   ...............  ...............
   165MISC EQUIPMENT                        ...............         -15,000   ...............         -20,000
   175ADP LEGACY SYSTEMS EFFICIENCIES       ...............         -95,620   ...............         -95,620
   166ELIMINATION OF FIRST PROGRAM          ...............          -7,000   ...............          -7,000
   166MINORITY AVIATION TRAINING            ...............             450   ...............             450
                                           ---------------------------------------------------------------------
   16800  TOTAL, O&M, AIR FORCE                 19,127,004       19,024,233       19,064,941       19,021,045
                                           =====================================================================
   168TRANSFER                                     (50,000)         (50,000)         (50,000)         (50,000)
   168TRANSFER TO QUALITY OF LIFE           ...............  ...............        -(50,000)  ...............
       ENHANCEMENTS
   168TRANSFER TO PENTAGON RENOVATION       ...............  ...............        -(52,200)        -(52,200)
       TRANSFER FUND
                                           ---------------------------------------------------------------------
   16900  TOTAL FUNDING AVAILABLE              (19,177,004)     (19,074,233)     (19,012,741)     (19,018,845)
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    12600 B-52 attrition reserve........................          40,100
    12600 Battlelabs....................................           4,000
    12650 LANTIRN PMA Offices...........................          -1,800
    12750 Combat training ranges........................           5,100
    12775 Depot Maintenance-Air Operations..............          13,300
    13100 SIMVAL........................................           1,228
    13350 Maintenance of Delta-1/Delta-9 facilities.....           5,000
    13350 Test launch delays............................         -10,000
    13450 SPACECOM Operations...........................           7,000
    13550 University partnering for operational support.           5,000
Budget Activity 2: Mobilization:
    13950 Industrial Preparedness.......................         -13,700
Budget Activity 3: Training and Recruiting:
    14300 Service academies; foreign students...........          -1,400
    14600 Educational Satellite and Airspace Training 
      System............................................           3,000
Budget Activity 4: Administration and Servicewide 
    Support:
    15750 Personnel Management program growth...........         -12,000
    16050 Civil Air Patrol Corporation..................           5,770
    16050 CAP Counternarcotics OPTEMPO..................           2,613
    16100 Rail Easement.................................           5,000
Undistributed:
    16410 Classified Programs Undistributed.............           2,000
    16475 REMIS.........................................          10,100
    16480 Base support shortfalls.......................          39,000
    16510 Temporary Duty Travel.........................         -77,500
    16535 Rents.........................................          -2,000
    16545 Communications Purchases......................         -13,600
    16575 Miscellaneous Equipment.......................         -20,000
    16585 ADP Legacy System efficiencies................         -95,620
    16605 Elimination of First Program..................          -7,000
    16660 Minority Aviation Training....................             450

                            civil air patrol

      The conferees recognize that changes have occurred in the 
relationship between the Air Force and the Civil Air Patrol 
Corporation, in that the principal source of support from the 
Air Force to the Civil Air Patrol Corporation is not excess 
supplies and equipment, but appropriated funds from the Air 
Force budget. Also, changes in the Civil Air Patrol Corporation 
headquarters staff have affected the relationship and funding 
between Air Force and the Civil Air Patrol. Of the funds 
appropriated for the Civil Air Patrol Corporation, the 
conferees direct that no more than fifteen percent may be spent 
for the Civil Air Patrol Corporation headquarters staff and 
operations and the National Executive Committee and Board. 
Further, the Civil Air Patrol Corporation shall provide the 
Secretary of the Air Force with a quarterly execution report, 
detailing the utilization of appropriated funds.

                           flotation devices

      The conferees direct that of the funds provided in 
Operation and Maintenance, Air Force, $1,000,000 be used only 
to begin the planned acquisition of passive flotation devices.

                 finley air force station north dakota

      The conferees direct the Air Force to expedite the 
abatement of hazardous substances in housing located at the 
Finley Air Force Station.

                          havre air force base

      Of the funds available in Operation and Maintenance, Air 
Force, the conferees agree to provide the Bear Paw Development 
Council, Montana, $150,000 for redevelopment of the Havre Air 
Force Base and Training Site.

                Operation and Maintenance, Defense-Wide

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
   1695OPERATION AND MAINTENANCE, DEFENSE-
                      WIDE
   170BUDGET ACTIVITY 1: OPERATING FORCES:
   17050  JOINT CHIEFS OF STAFF                    410,065          412,065          417,065          414,065
   17100  SPECIAL OPERATIONS COMMAND             1,149,328        1,154,978   ...............       1,159,978
                                           ---------------------------------------------------------------------
   17150    TOTAL, BUDGET ACTIVITY 1             1,559,393        1,567,043          417,065        1,574,043
                                           =====================================================================
   172BUDGET ACTIVITY 2: MOBILIZATION:
   17250  DEFENSE LOGISTICS AGENCY                  38,934           38,934           38,934           38,934
                                           =====================================================================
   173BUDGET ACTIVITY 3: TRAINING AND
       RECRUITING:
   17400  DEFENSE ACQUISITION UNIVERSITY    ...............          95,000   ...............          95,000
   17450  AMERICAN FORCES INFORMATION               11,059           11,059           11,059           11,059
           SERVICE
   17600  SPECIAL OPERATIONS COMMAND                42,408           42,408   ...............          42,408
                                           ---------------------------------------------------------------------
   17650    TOTAL, BUDGET ACTIVITY 3                53,467          148,467           11,059          148,467
                                           =====================================================================
   177BUDGET ACTIVITY 4: ADMIN &
       SERVICEWIDE ACTIVITIES:
   17750  AMERICAN FORCES INFORMATION               93,815           93,815           93,595           93,815
           SERVICE
   17775  CIVIL MILITARY PROGRAMS                   44,894           44,894           88,394           87,394
   17800  CLASSIFIED AND INTELLIGENCE            3,803,561        3,845,018        3,767,161        3,798,361
   17900  DEFENSE CONTRACT AUDIT AGENCY            330,087          325,712          330,087          325,712
   17950  DEFENSE FINANCE AND ACCOUNTING            83,277           48,711           83,277           83,277
           SERVICE
   18000  DEFENSE HUMAN RESOURCES ACTIVITY         198,923          188,023          192,923          183,523
   18050  DEFENSE INFORMATION SYSTEMS              771,106          751,706          763,706          751,706
           AGENCY
   18150  DEFENSE LEGAL SERVICES AGENCY              9,027            9,027            9,027            9,027
   18200  DEFENSE LOGISTICS AGENCY               1,140,137        1,147,122        1,153,137        1,146,237
   18250  PROCUREMENT TECHNICAL ASSISTANCE  ...............  ...............          17,000   ...............
           PROGRAM
   18300  DEFENSE POW/MISSING PERSONS               14,110           14,110           14,110           14,110
           OFFICE
   18310  DEFENSE SECURITY ASSISTANCE                4,610   ...............           4,610            3,010
           AGENCY
   18320  DEFENSE SECURITY SERVICE                  83,419           81,219           83,419           83,419
   18475  DEFENSE THREAT REDUCTION AND             304,745          290,345          251,445          276,945
           TREATY COMPLIANCE AGENCY
   18500  DEPARTMENT OF DEFENSE DEPENDENTS       1,347,718        1,354,968        1,348,118        1,355,518
           EDUCATION
   18600  JOINT CHIEFS OF STAFF                    139,616          134,816          112,716          137,916
   18650  OFFICE OF ECONOMIC ADJUSTMENT             31,233           32,733           31,233           56,733
   18700  OFFICE OF THE SECRETARY OF               369,836          356,086          375,836          359,736
           DEFENSE
   18850  SPECIAL OPERATIONS COMMAND                47,117           47,117   ...............          47,117
   18900  WASHINGTON HEADQUARTERS SERVICE          281,676          270,676          224,376          264,276
   18920  REPAIRS TO FEDERALLY-FUNDED       ...............  ...............          10,000           10,000
           SCHOOLS
                                           ---------------------------------------------------------------------
   18950    TOTAL, BUDGET ACTIVITY 4             9,098,907        9,036,098        8,954,170        9,087,832
                                           =====================================================================
   189BUDGET ACTIVITY 5:
   18955  SPECIAL OPERATIONS COMMAND        ...............  ...............       1,252,503   ...............
   18960  LEGACY                            ...............  ...............          10,000           10,000
   18970  CIVILIAN PERSONNEL UNDERSTRENGTH  ...............  ...............        -349,000           -5,200
   18975  FOREIGN CURRENCY FLUCTUATION      ...............          -6,000           -8,500   ...............
   19100  UNDISTRIBUTED REDUCTION                     -100   ...............  ...............  ...............
   19110  IMPACT AID                        ...............          35,000   ...............          35,000
   19120  ADP LEGACY SYSTEMS EFFICIENCIES   ...............         -18,000   ...............         -18,000
   19130  ADMINISTRATIVE AND CONTRACTOR     ...............         -40,000   ...............  ...............
           SUPPORT
   19150  FUEL SAVINGS                      ...............  ...............         -67,000   ...............
   19230  MILITARY PERSONNEL INFORMATION    ...............          38,000   ...............          38,000
           SYSTEM
   19240  NIPC TECHNICAL SUPPORT            ...............           5,000   ...............           5,000
                                           ---------------------------------------------------------------------
   19350    TOTAL, OPERATION AND                10,750,601       10,804,542       10,259,231       10,914,076
             MAINTENANCE, DEFENSE-WIDE
   19375  TRANSFER TO PENTAGON RENOVATION   ...............  ...............        (-90,020)        (-90,020)
           TRANSFER FUND
                                           ---------------------------------------------------------------------
   19450    TOTAL FUNDING AVAILABLE            (10,750,601)     (10,804,542)     (10,169,211)     (10,824,056)
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    17050 JCS--Mobility Enhancements....................          10,000
    17050 JCS--Exercise Northern Edge...................           7,000
    17050 JCS--Joint Exercises..........................         -13,000
    17100 SOCOM--Joint Threat Warning System............           1,000
    17100 SOCOM--Counter Proliferation/WMD..............           7,650
    17100 SOCOM--Patrol Coastal Operations..............          -4,000
    17100 SOCOM--Maritime Training......................           5,000
    17100 SOCOM--Language Training......................           1,000
Budget Activity 3: Training and Recruiting:
    17400 DAU--Transfer.................................          95,000
Budget Activity 4: Administration and Servicewide 
    Activities:
    17775 Civil-Military Programs.......................          42,500
    17800 Classified and Intelligence...................          -5,200
    17900 DCAA--Within Grade Increases..................          -2,375
    17900 DCAA--Price Growth Error......................          -2,000
    1800 DHRA--DCPDS....................................          -7,000
    1800 DHRA--Field Activity Consolidation.............          -4,500
    18000 DHRA--Pay Rate Error..........................          -3,900
    18050 DISA--GCSS....................................         -10,900
    18050 DISA--Lower Priority Program Increases........          -6,700
    18050 DISA--Management Headquarters Reduction.......          -1,800
    18200 DLA--Equipment and Misc. Purchases............         -17,900
    18200 DLA--Warstopper Increase......................          -3,000
    18200 DLA--Improved Cargo Methods and Technologies..           2,000
    18200 DLA--Automated Document Conversion............          25,000
    18310 Defense Security Assistance Agency............          -1,600
    18475 DTRA--Partnership for Peace (National Guard)..           1,000
    18475 DTRA--Partnership for Peace excess growth.....         -15,400
    18475 DTRA--PfP Information Management System.......           2,000
    18475 DTRA--OSIA....................................         -15,400
    18500 DoDEA--Facility Maintenance Contract..........          -3,850
    18500 DoDEA--Math Leadership Program................             400
    18500 DoDEA--New Parent Support Program.............           8,000
    18500 DoDEA--Family Counseling and Crisis Services..           2,000
    18500 DoDEA--Desiccant Demo.........................           1,250
    18600 JCS--JMEANS...................................           3,100
    18600 JCS--Management Headquarters Reduction........          -4,800
    18650 OEA--Agile Port Capability Study..............             500
    18650 OEA--Fitzsimmons Army Hospital................          10,000
    18650 OEA--Shipyard Infrastructure Repair...........          10,000
    18650 OEA--Pico Rivera..............................           4,000
    18650 OEA--Planning.................................           1,000
    18700 SD--Youth Development and Leadership Program..             400
    18700 OSD--Lower Priority Program Increases.........         -10,500
    18900 WHS--Defense Travel Schedule Slip.............          -6,400
    18900 WHS--Lower Priority Program Increases.........         -10,000
    18900 WHS--White House Defense Fellows..............          -1,000
    18920 Repairs to Federally Funded Schools...........          10,000
Undistributed:
    18960 Legacy........................................          10,000
    18970 Civilian Personnel Underexecution.............          -5,200
    19110 Impact Aid....................................          35,000
    19120 ADP Legacy Systems efficiencies...............         -18,000
    19230 Military Personnel Information System.........          38,000
    19240 NIPC Technical Support........................           5,000

                        Civil/Military Programs

      The conferees recommend a total of $87,394,000 for the 
Department's civil/military programs. In addition, the 
conferees recommend a new general provision, Section 8131, 
which waives the limitation on expenditures for the National 
Guard Challenge Program for fiscal year 1999. The conferees 
recognize that both the Department of Justice and Department of 
Defense have taken steps in developing programs for at-risk 
youth. The National Guard's highly effective Youth Challenge 
Program is an example of 22 states working to make productive 
citizens out of high school drop-outs. The conferees encourage 
both Departments to work together, combining strengths and 
successes of each program, exchange ideas, and, when possible, 
share available resources to enhance and expand the 
effectiveness of these initiatives. The funding for the civil/
military programs for fiscal year 1999 follows:

                        [In thousands of dollars]

National Guard Youth Challenge Program..................          62,394
Innovative Readiness Training Program...................          20,000
Starbase Program........................................           5,000
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................          87,394

                  oea--shipyard infrastructure repairs

      The conferees have agreed to provide $10,000,000 only for 
shipyard infrastructure repairs as recommended by the Senate 
under the Operation and Maintenance, Navy appropriation 
account.

                              h.l. hunley

      Of the funding provided for the Legacy Program, the 
conferees agree to provide $300,000 to prepare conservation 
plans to preserve the H.L. Hunley, and to develop an emergency 
recovery plan associated with raising the ship.

                       on-site inspection agency

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

                             security locks

      The conferees agree with the Senate report language 
directing the Department of Defense to provide a report on 
their security locks retrofit program by December 15, 1998. 
Furthermore, the conferees agree that of the funds provided in 
this account $15,000,000 is for the purchase of additional 
security locks which meet federal specification FF-L-2740A.

                         job placement program

      The conferees are disappointed with the Department's lack 
of responsiveness to last year's direction to implement a job 
placement and community outreach services program. Therefore, 
the conferees again direct the Department to provide at least 
$6,000,000 from within available funds for the implementation 
of this effort which would market and coordinate involvement of 
existing qualified service providers through the Job Training 
Partnership Act, facilitate municipal offering of community 
outreach services and provide data for the evaluation of 
federal job placement programs.

                Operation and Maintenance, Army Reserve

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   19500     OPERATION AND MAINTENANCE, ARMY RESERVE
   195BUDGET ACTIVITY 1: OPERATING FORCES:
   19560LAND FORCES:
   19570  DIVISION FORCES                                        10,918       10,918       10,918       10,918
   19580  CORPS COMBAT FORCES                                    17,890       17,890       17,890       17,890
   19590  CORPS SUPPORT FORCES                                  165,897      165,897      165,897      165,897
   19595  ECHELON ABOVE CORPS FORCES                             86,565       86,565       86,565       86,565
   19600  MISSION OPERATIONS:
   19610  LAND FORCES OPERATIONS SUPPORT                        227,856      227,856      227,856      227,856
   19630LAND FORCES READINESS:
   19640  FORCES READINESS OPERATIONS SUPPORT                   123,824      123,824      123,824      123,824
   19650  LAND FORCES SYSTEM READINESS                           13,757       13,757       13,757       13,757
   19660  DEPOT MAINTENANCE                                      47,342       47,342       47,342       47,342
   196LAND FORCES READINESS SUPPORT:
   19680  BASE SUPPORT                                          305,760      305,760      305,760      305,760
   19690  MAINTENANCE OF REAL PROPERTY                           61,177       61,177       61,177       61,177
   19710  UNIFIED COMMANDS                                          107          107          107          107
   19720  MISCELLANEOUS ACTIVITIES                                1,383        1,383        1,383        1,383
                                                           -----------------------------------------------------
   19900    TOTAL, BUDGET ACTIVITY 1                          1,062,476    1,062,476    1,062,476    1,062,476
                                                           =====================================================
   199BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:
   20000ADMINISTRATION AND SERVICEWIDE ACTIVITIES:
   20025  STAFF MANAGEMENT HEADQUARTERS                          27,465       27,465       27,465       27,465
   20050  INFORMATION MANAGEMENT                                 23,601       23,601       23,601       23,601
   20060  PERSONNEL/FINANCIAL ADMINISTRATION                     47,327       47,327       47,327       47,327
   20070  RECRUITING AND ADVERTISING                             41,753       41,753       41,753       41,753
   20110  FUEL REPRICING                                    ...........       -1,400  ...........  ...........
                                                           -----------------------------------------------------
   20300    TOTAL, BUDGET ACTIVITY 4                            140,146      138,746      140,146      140,146
                                                           -----------------------------------------------------
   20700    TOTAL, OPERATION AND MAINTENANCE, ARMY RESERVE    1,202,622    1,201,222    1,202,622    1,202,622
----------------------------------------------------------------------------------------------------------------

                       army/navy reserve centers

      The conferees understand that there are two Army Reserve 
Centers in Florida and one in Youngstown, Ohio which are in 
extensive need of repair and renovation. In addition, the Navy 
Reserve has a facility located in Youngstown, Ohio, which is 
vacant and needs remediation. The conferees have provided 
additional funds for Real Property Maintenance for the Army 
Reserve and Navy Reserve, and directs that $2,000,000 be 
designated to each component to meet these requirements.

                    joint military training complex

      The conferees understand that several Reserve units in 
central Florida have been impacted by the closure of the 
Orlando Naval Training Center, and the Department is 
considering the possibility of developing a joint complex in 
the Orlando area. The conferees recommend that $300,000 of the 
funds provided for Operation and Maintenance, Army Reserve be 
used for feasibility studies and environmental assessments in 
the support of the joint complex.

                Operation and Maintenance, Navy Reserve

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   20850     OPERATION AND MAINTENANCE, NAVY RESERVE
   209BUDGET ACTIVITY 1: OPERATION FORCES:
   20950RESERVE AIR OPERATIONS:
   21000  MISSION AND OTHER FLIGHT OPERATIONS                   300,682      300,682      300,682      300,682
   21050  FLEET AIR TRAINING                                        484          484          484          484
   21100  INTERMEDIATE MAINTENANCE                               17,271       17,271       17,271       17,271
   21150  AIR OPERATION AND SAFETY SUPPORT                        3,044        3,044        3,044        3,044
   21200  AIRCRAFT DEPOT MAINTENANCE                            121,740      132,740      121,740      132,740
   21250  AIRCRAFT DEPOT OPS SUPPORT                                323          323          323          323
   21300  BASE SUPPORT                                          101,963      101,963      101,963      101,963
   21350  MAINTENANCE OF REAL PROPERTY                           24,370       24,370       24,370       24,370
   21400RESERVE SHIP OPERATIONS:
   21450  MISSION AND OTHER SHIP OPERATIONS                      61,924       71,924       61,924       71,924
   21500  SHIP OPERATIONAL SUPPORT AND TRAINING                     611          611          611          611
   21550  INTERMEDIATE MAINTENANCE                                9,472        9,472        9,472        9,472
   21600  SHIP DEPOT MAINTENANCE                                 79,257       79,257       79,257       79,257
   21650  SHIP DEPOT OPERATIONS SUPPORT                           1,459        1,459        1,459        1,459
   21700RESERVE COMBAT OPERATIONS SUPPORT:
   21800  COMBAT SUPPORT FORCES                                  28,355       28,355       28,355       28,355
   21850  BASE SUPPORT                                           34,411       34,411       34,411       34,411
   21900  MAINTENANCE OF REAL PROPERTY                            9,606        9,606        9,606        9,606
   21950RESERVE WEAPONS SUPPORT:
   22000  WEAPONS MAINTENANCE                                     5,217        5,217        5,217        5,217
                                                           -----------------------------------------------------
   22050    TOTAL, BUDGET ACTIVITY 1                            800,189      821,189      800,189      821,189
                                                           =====================================================
   221BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:
   22150ADMINISTRATION AND SERVICEWIDE ACTIVITIES:
   22200  ADMINISTRATION                                          6,209        6,209        6,209        6,209
   22250  CIVILIAN MANPOWER AND PERSONNEL MANAGEMENT              1,015        1,015        1,015        1,015
   22300  MILITARY MANPOWER AND PERSONNEL MANAGEMENT             25,420       25,420       25,420       25,420
   22400  SERVICEWIDE COMMUNICATIONS                             50,534       50,534       50,534       50,534
   22450  BASE SUPPORT                                           29,571       29,571       29,571       29,571
   22500  MAINTENANCE OF REAL PROPERTY                            7,182        7,182        7,182        7,182
   22550  COMBAT/WEAPONS SYSTEMS                                  5,398        5,398        5,398        5,398
   22600  GENERAL DEFENSE INTELLIGENCE PROGRAM                      587          587          587          587
   22605LOGISTICS OPERATIONS AND TECHNICAL SUPPORT:
   22610  AIR SYSTEMS SUPPORT                                     2,534        2,534        2,534        2,534
                                                           -----------------------------------------------------
   22750    TOTAL, BUDGET ACTIVITY 4                            128,450      128,450      128,450      128,450
                                                           =====================================================
   227FUEL REPRICING                                        ...........       -8,200  ...........  ...........
   227P-3 SQUADRONS                                         ...........        7,600  ...........        7,600
                                                           -----------------------------------------------------
   23150  TOTAL, OPERATION AND MAINTENANCE, NAVY RESERVE        928,639      949,039      928,639      957,239
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    21200 Aircraft Depot Maintenance/C-20 Repair........          11,000
    21450 Mission and Other Ship Operations/MCM Steaming 
      Days..............................................          10,000
Undistributed:
    22790 P-3 Squadrons.................................           7,600

                          navy reserve forces

      The conferees concur in the House direction of House 
Report 105-591, page 81, regarding Navy Reserve force structure 
and operations.

                      navy reserve training center

      The conferees understand the City of Gary, Indiana 
objects to the current leasing arrangement between the Navy and 
the City of Gary relating to the presence of a Naval Reserve 
Training Center on city-owned property. The conferees urge the 
Navy to negotiate with the City of Gary the relocation of its 
facility.

            Operation and Maintenance, Marine Corps Reserve

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   23300 OPERATION AND MAINTENANCE, MARINE CORPS RESERVE
   233BUDGET ACTIVITY 1: OPERATING FORCES:
   23400MISSION FORCES:
   23450  TRAINING                                               14,435       14,435       14,435       14,435
   23500  OPERATING FORCES                                       33,823       33,823       33,823       33,823
   23550  BASE SUPPORT                                           16,272       16,272       16,277       16,272
   23600  MAINTENANCE OF REAL PROPERTY                            6,976        6,976        6,976        6,976
   23650  DEPOT MAINTENANCE                                       2,821        2,821        2,821        2,821
                                                           -----------------------------------------------------
   23700    TOTAL, BUDGET ACTIVITY 1                             74,327       74,327       74,327       74,327
                                                           =====================================================
   237BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:
   23800ADMINISTRATION AND SERVICEWIDE ACTIVITIES:
   23850  RECRUITING AND ADVERTISING                              7,920        9,120        7,920        7,920
   23900  SPECIAL SUPPORT                                        11,080       11,080       11,080       11,080
   23950  SERVICEWIDE TRANSPORTATION                              4,714        4,714        4,714        4,714
   24000  ADMINISTRATION                                          8,763        8,763        8,763        8,763
   24050  BASE SUPPORT                                            7,789        7,789        7,789        7,789
   24110  INCREASED USE OF GUARD AND RESERVE                ...........        1,200  ...........        1,200
   24120  ACTIVE DUTY FOR SPECIAL WORK                      ...........        2,100  ...........        2,100
                                                           -----------------------------------------------------
   24200    TOTAL, BUDGET ACTIVITY 4                             40,266       44,766       40,266       43,566
                                                           -----------------------------------------------------
   24600    TOTAL, O&M, MARINE CORPS RESERVE                    114,593      119,093      114,593      117,893
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 4: Administration and Servicewide 
    Activities:
    24110 Increased Use of Guard and Reserve............           1,200
    24120 Active Duty for Special Work..................           2,100

              Operation and Maintenance, Air Force Reserve

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   24750  OPERATION AND MAINTENANCE, AIR FORCE RESERVE
   248BUDGET ACTIVITY 1: OPERATING FORCES:
   24850AIR OPERATIONS:
   24900  AIRCRAFT OPERATIONS                                 1,038,509    1,038,509    1,038,509    1,038,509
   24950  MISSION SUPPORT OPERATIONS                             40,926       40,926       40,926       40,926
   25000  BASE SUPPORT                                          223,606      223,606      223,606      223,606
   25050  MAINTENANCE OF REAL PROPERTY                           61,616       61,616       61,616       61,616
   25100  DEPOT MAINTENANCE                                     298,493      298,493      298,493      298,493
                                                           -----------------------------------------------------
   25150    TOTAL, BUDGET ACTIVITY 1                          1,663,150    1,663,150    1,663,150    1,663,150
                                                           =====================================================
   252BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:
   25250ADMINISTRATION AND SERVICEWIDE ACTIVITIES:
   25300  ADMINISTRATION                                         46,002       46,002       46,002       46,002
   25350  MILITARY MANPOWER AND PERSONNEL MANAGEMENT             20,205       20,205       20,205       20,205
   25400  RECRUITING AND ADVERTISING                              8,360       11,360        8,360       11,360
   25450  OTHER PERSONNEL SUPPORT                                 6,366        6,366        6,366        6,366
   25500  AUDIOVISUAL                                               613          613          613          613
   25520  FUEL REPRICING                                    ...........      -11,700  ...........  ...........
                                                           -----------------------------------------------------
   25550    TOTAL, BUDGET ACTIVITY 4                             81,546       72,846       81,546       84,546
                                                           -----------------------------------------------------
   25950    TOTAL, O&M AIR FORCE RESERVE                      1,744,696    1,735,996    1,744,696    1,747,696
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustment to the budget activities is as follows:

                        [In thousands of dollars]

Budget Activity 4: Administration and Servicewide 
    Activities:
    25400 Recruiting and Advertising....................           3,000

             Operation and Maintenance, Army National Guard

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   26100 OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD
   261BUDGET ACTIVITY 1: OPERATING FORCES:
   26200MISSION OPERATIONS:
   26210  LAND FORCES                                         1,302,542    1,402,542    1,361,042    1,402,542
   26220  LAND FORCES READINESS                                 144,113      144,113      144,113      164,113
   26230  LAND FORCES READINESS SUPPORT                         839,066      843,266      853,066      843,266
   26400  DEPOT MAINTENANCE                                 ...........  ...........       32,500  ...........
   26500  MAINTENANCE OF REAL PROPERTY                      ...........  ...........       65,000       45,000
                                                           -----------------------------------------------------
   26550    TOTAL, BUDGET ACTIVITY 1                          2,285,721    2,389,921    2,455,721    2,454,921
                                                           =====================================================
   266BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:
   26650ADMINISTRATION AND SERVICEWIDE ACTIVITIES:
   26800  PERSONNEL ADMINISTRATION                               59,249       59,249       59,249       59,249
   26850  STAFF MANAGEMENT                                       33,490       33,490       33,490       33,490
   26860  INFORMATION MANAGEMENT                                 21,793       24,593       76,793       66,793
   26900  RECRUITING AND ADVERTISING                             36,562       36,562       36,562       36,562
     -----------------------------------------------------------------------------------------------------------
   26905    TOTAL, BUDGET ACTIVITY 4                            151,094      153,894      206,094      196,094
                                                           =====================================================
   269FUEL REPRICING                                        ...........       -3,500  ...........  ...........
   269MILITARY (CIVILIAN) TECHNICIANS                       ...........       27,000  ...........       27,000
   269CONSEQUENCE MANAGEMENT                                ...........        3,000  ...........  ...........
     -----------------------------------------------------------------------------------------------------------
   27350  TOTAL, OPERATION AND MAINTENANCE, ARMY NAT.         2,436,815    2,570,315    2,661,815    2,678,015
           GUARD
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    26210 Land Forces/Ground Optempo....................         100,000
    26220 Land Forces Readiness/Depot Maintenance.......          20,000
    26230 Land Forces Readiness Support/Angel Gate 
      Academy...........................................           4,200
    26500 Maintenance of Real Property..................          45,000
Budget Activity 4: Administration and Servicewide 
    Activities:
    26860 Information Management/Distance Learning......          35,000
    26860 Information Management/Communications 
      Shortfall.........................................          10,000
Undistributed:
    26950 Military (civilian) Technicians...............          27,000

                 army national guard distance learning

      The conferees agree to provide an increase of $35,000,000 
in Operation and Maintenance, Army National Guard and an 
increase of $28,000,000 in Other Procurement, Army for distance 
learning and information management requirements.
      Of this amount, $2,800,000 is only to continue efforts to 
demonstrate cost effective ways to use the National Guard 
Distance Learning Network to meet DoD training requirements as 
provided for in House Report 105-591. In addition, $4,600,000 
is only for the Montana Army Guard for a distance learning 
demonstration project as described in Senate Report 105-200.

                        chicago military academy

      The conferees recommend that $10,000,000 of the funds 
provided for Operation and Maintenance, Army National Guard are 
for the conversion of the Eighth Regiment National Guard Armory 
into a Chicago Military Academy, in order to provide a JROTC 
instruction program.

                       camp dawson, west virginia

      The conferees urge the Army National Guard to develop a 
concept plan for the future of Camp Dawson.

                            camp dodge, iowa

      The conferees recommend that $6,000,000 of the funds 
available for Real Property Maintenance in Operation and 
Maintenance, Army National Guard be used for repair of storm 
damage at Camp Dodge, Iowa.

             Operation and Maintenance, Air National Guard

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
   27500  OPERATION AND MAINTENANCE, AIR NATIONAL GUARD
   275BUDGET ACTIVITY 1: OPERATION FORCES:
   27600AIR OPERATIONS:
   27650  AIRCRAFT OPERATIONS                                 1,935,880    1,937,380    1,945,880    1,945,880
   27700  MISSION SUPPORT OPERATIONS                            340,884      340,884      340,884      340,884
   27750  BASE SUPPORT                                          295,163      295,163      295,163      295,163
   27800  MAINTENANCE OF REAL PROPERTY                           82,633       82,633       82,633       82,633
   27850  DEPOT MAINTENANCE                                     428,708      428,708      438,708      428,708
                                                           -----------------------------------------------------
   27900    TOTAL, BUDGET ACTIVITY 1                          3,083,268    3,084,768    3,103,268    3,093,268
                                                           =====================================================
   279BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:
   28000SERVICEWIDE ACTIVITIES:
   28050  ADMINISTRATION                                          2,913        2,913        2,913        2,913
   28100  RECRUITING AND ADVERTISING                              7,752       10,752        7,752       10,752
   28110  FUEL REPRICING                                    ...........      -23,200  ...........  ...........
                                                           -----------------------------------------------------
   28150    TOTAL, BUDGET ACTIVITY 4                             10,665       -9,535       10,665       13,665
                                                           =====================================================
   28550    TOTAL, O&M, AIR NATIONAL GUARD                    3,093,933    3,075,233    3,113,933    3,106,933
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

    Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    27650 Aircraft Operations/159th Fighter Group/C-130 
      Operations........................................          10,000
Budget Activity 4: Administration and Servicewide 
    Activities:
    28100 Recruiting and Advertising....................           3,000

                       search and rescue support

      The conferees direct that the Air National Guard provide 
support for Coast Guard seasonal search and rescue mission 
requirements at the Francis S. Gabreski Airport in Hampton, New 
York. Assistance to the Coast Guard will include access to 
necessary facilities, runway, hangar, operations center, 
berthing, and maintenance spaces. Seasonal Coast Guard access 
will be maintained between April 15 and October 15, 1999. The 
Director of the Air National Guard and the Commandant of the 
Coast Guard shall enter into a memorandum of agreement (MOA) 
for use of these facilities and shall provide copies of that 
agreement to the Committees on Appropriations not later than 
December 1, 1998.

                   defense systems evaluation program

      The conferees direct that $2,250,000 of the funds 
provided for Operation and Maintenance, Air National Guard be 
for the Defense Systems Evaluation program for support of test 
and training operations at White Sands Missile Range, New 
Mexico, and Fort Bliss, Texas.

             Overseas Contingency Operations Transfer Fund

      The conferees agree to provide $439,400,000 for the 
Overseas Contingency Operations Transfer Fund. This amount 
covers estimated DoD costs of continuing operations in 
Southwest Asia.

          United States Court of Appeals for the Armed Forces

      The conference agreement provides $7,324,000 for the 
United States Court of Appeals for the Armed Forces as 
requested in the budget.

                    Environmental Restoration, Army

      The conferees agree to provide $370,640,000 for 
Environmental Restoration, Army.

                    Environmental Restoration, Navy

      The conferees agree to provide $274,600,000 for 
Environmental Restoration, Navy.

                  Environmental Restoration, Air Force

      The conferees agree to provide $372,100,000 for 
Environmental Restoration, Air Force.

                Environmental Restoration, Defense-wide

      The conferees agree to provide $26,091,000 for 
Environmental Restoration, Defense-Wide.

         Environmental Restoration, Formerly Used Defense Sites

      The conferees agree to provide $225,000,000 for 
Environmental Restoration, Formerly Used Defense Sites.

                 building demolition and debris removal

      To minimize mobilization costs at remote sites, the 
Department may perform building demolition and debris removal 
at formerly used defense sites (FUDS) using fiscal year 1999 
funds available under this heading. The conferees direct the 
Department to conduct building demolition and debris removal at 
the following formerly used defense sites: Collinson Point, 
Nuvagapak Point and Cape Sarichef, Alaska, or alternative sites 
in Alaska to optimize cost effectiveness on a regional basis.

                        charleston macalloy site

      The conferees concur with the Senate's recommended 
reporting requirements regarding the Defense Logistics Agency 
inventory location in Charleston, South Carolina. The conferees 
expect that, if the Department determines that this site is 
eligible for formerly used defense sites (FUDS) funding, 
$10,000,000 shall be made available as expeditiously as 
possible considering departmental policies on the allocation of 
such funds.

         government owned contractor operated (goco) facilities

      The conferees are concerned about the Army's limited 
progress in recovering the costs associated with environmental 
restoration at former ammunition production GOCO facilities. 
Therefore, the conferees direct the Army to take the following 
actions and, by the dates noted, report on their findings to 
the congressional defense committees.
      No later than March 30, 1999, the Army should (1) 
identify all GOCO ammunition production facilities, the 
contractors that operated the facilities, and the prime 
contract numbers of each contract for the operation of the 
facilities (2) document the current environmental cleanup 
status, including past and projected clean up costs, for each 
GOCO facility (3) compile a summary of historical third-party 
insurance coverage for each GOCO facility, including the names 
of all the insurers, policy numbers, policy periods, and terms, 
conditions, and limits of coverage (4) ascertain whether 
notices of accidents or occurrences, or other appropriate 
notices, have been given to each of the insurers, including any 
notices provided by the operating contractor, and (5) determine 
if any of the GOCO facilities was placed on a standby status 
and whether insurance coverage remained in force during that 
period.
      Not later than June 15, 1999, the conferees expect the 
Department to (1) file notices of claims with as many of the 
insurers as possible and to provide a timetable for filing all 
remaining notices of claims (2) prepare a detailed legal 
analysis of the potential claims for each of the GOCO 
facilities including an assessment of applicable case law, 
potential effect of specific indemnification provisions, 
pollution exclusion and limitations in the scope of coverage 
(3) analyze alternative approaches, such as pursuing claims in 
groups, to maximize insurance recovery, including legal 
strategy and timetables, and decide on a recommended course of 
action.

             notification of environmental contract awards

      The conferees direct each military service to notify 
interested State and local authorities and interested Members 
of Congress upon release of draft solicitations for contracts 
anticipated to exceed $5,000,000. The conferees further direct 
that this requirement shall also apply to all increments of 
indefinite delivery indefinite quantity-type contracts which 
meet this threshold.

   total environmental remediation contracts (terc)/remedial action 
                            contracts (rac)

      The conferees direct that not more than twenty-five 
percent of funding obligated by the Corps of Engineers for 
environmental remediation shall be executed through TERC 
contracts. Additionally, the conferees are concerned with the 
Navy's increasing reliance on the RAC to accomplish 
environmental remediation. Accordingly, the conferees direct 
the Secretary of the Navy to report to the congressional 
defense committees no later than January 15, 1999, on their use 
of RAC during fiscal year 1998. The conferees further direct 
that this information be provided quarterly throughout fiscal 
year 1999.

                   mitigation of environmental damage

      In entering into contracts for the mitigation of 
environmental damage on Indian lands, the Department is 
encouraged to extend a preference to Native American owned or 
operated businesses with experience in the mitigation of 
environmental damage or environmental technology.

             Overseas Humanitarian, Disaster, and Civic Aid

      The conferees agree to provide $50,000,000 for Overseas 
Humanitarian, Disaster, and Civic Aid.

                  Former Soviet Union Threat Reduction

      The conferees agree to provide $440,400,000, for the 
Former Soviet Union Threat Reduction program.

                  Quality of Life Enhancement, Defense

      The conferees agree to provide a total of $455,000,000 
for Quality of Life Enhancement, Defense. Given the substantial 
backlog of real property maintenance in the areas of barracks, 
dormitories and related facilities, the conferees direct that 
these funds be applied to workload for such projects within the 
United States and its territories. In the case of the Reserve 
components, these additional funds should be utilized to reduce 
the backlog in mission and support facilities. The conferees 
further direct the Secretaries of each of the Military Services 
to provide the congressional defense committees with a report 
on each additional project to be funded from funds available in 
this account prior to solicitation for these projects. This 
report shall include the location, estimated cost and projected 
commencement and completion dates for each project.

                         TITLE III--PROCUREMENT

      The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
                     SUMMARY
ARMY:
    AIRCRAFT....................................       1,325,943       1,400,338       1,408,652       1,388,268
    MISSILES....................................       1,205,768       1,140,623       1,188,739       1,226,335
    WEAPONS, TRACKED COMBAT VEHICLES............       1,433,608       1,513,540       1,484,055       1,548,340
    AMMUNITION..................................       1,008,855       1,099,155         998,655       1,065,955
    OTHER.......................................       3,198,811       3,101,130       3,395,729       3,339,486
                                                 ---------------------------------------------------------------
      TOTAL, ARMY...............................       8,172,985       8,254,786       8,475,830       8,568,384
                                                 ===============================================================
NAVY:
    AIRCRAFT....................................       7,466,734       7,599,968       7,473,403       7,541,709
    WEAPONS.....................................       1,327,545       1,191,219       1,324,045       1,211,419
    AMMUNITION..................................         429,539         473,803         488,939         484,203
    SHIPS.......................................       6,252,672       5,973,452       6,067,272       6,035,752
    OTHER.......................................       3,937,737       3,990,553       3,886,475       4,072,662
    MARINE CORPS................................         745,858         812,618         954,177         874,216
                                                 ---------------------------------------------------------------
      TOTAL, NAVY...............................      20,160,085      20,041,613      20,194,311      20,219,961
                                                 ===============================================================
AIR FORCE:
    AIRCRAFT....................................       7,756,475       8,384,735       7,967,023       8,095,507
    MISSILES....................................       2,359,803       2,191,527       2,219,299       2,069,827
    AMMUNITION..................................         384,161         388,925         384,161         379,425
    OTHER.......................................       6,974,387       7,034,217       6,904,164       6,960,483
                                                 ---------------------------------------------------------------
      TOTAL, AIR FORCE..........................      17,474,826      17,999,404      17,474,647      17,505,242
                                                 ===============================================================
DEFENSE-WIDE....................................       2,041,650       2,055,432       1,932,250       1,944,833
NATIONAL GUARD AND RESERVE EQUIPMENT............  ..............         120,000         500,000         352,000
                                                 ---------------------------------------------------------------
      TOTAL PROCUREMENT.........................      47,849,546      48,471,235      48,577,038      48,590,420
----------------------------------------------------------------------------------------------------------------

                       Aircraft Procurement, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           AIRCRAFT PROCUREMENT, ARMY
C-XX (MEDIUM RANGE) AIRCRAFT...................  ...........  ...........       30,000            5       27,000
UH-60 BLACKHAWK (MYP)..........................      218,820      297,320      292,765           29      272,365
AH-64 MODS.....................................       52,902       55,902       54,402  ...........       56,902
CH-47 CARGO HELICOPTER MODS (MYP)..............      101,176       88,476       73,876  ...........       81,176
C-12 CARGO AIRPLANE MODS.......................        2,658        9,658        8,658  ...........        8,658
KIOWA WARRIOR..................................       40,446       56,446       52,646  ...........       52,646
EH-60 QUICKFIX MODS............................        3,015        3,015  ...........  ...........  ...........
AIRCRAFT SURVIVABILITY EQUIPMENT...............        5,144       12,544       18,944  ...........       12,544
COMMON GROUND EQUIPMENT........................       30,107       31,307       30,107  ...........       31,307
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -1,584  ...........  ...........       -1,584
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
UH-60 BLACKHAWK (MYP).......................................      218,820      297,320      292,765      272,365
    Additional aircraft.....................................            0       78,500       78,500       58,100
    Engineering change orders...............................            0            0       -4,555       -4,555
AH-64 MODS..................................................       52,902       55,902       54,402       56,902
    VMEP for National Guard.................................            0        3,000            0        3,000
    AH-64 T701C engine upgrade..............................            0            0        1,500        1,000
KIOWA WARRIOR...............................................       40,446       56,446       52,646       52,646
    System safety enhancement...............................            0       16,000        9,600        9,600
    Crew station mission equipment trainer..................            0            0        2,600        2,600
----------------------------------------------------------------------------------------------------------------

                       Missile Procurement, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           MISSILE PROCUREMENT, ARMY
HELLFIRE SYS SUMMARY...........................      360,625      313,325      360,625        2,000      360,625
JAVELIN (AAWS-M) SYSTEM SUMMARY................      319,988      319,988      349,988        3,316      339,988
MLRS ROCKET....................................       16,513        3,413  ...........  ...........  ...........
MLRS LAUNCHER SYSTEMS..........................       85,387      110,387      143,787           24      123,787
ATACMS/BAT.....................................       49,083       49,083       24,083           30       49,083
BAT............................................      100,425      100,425       50,225          420      100,425
AVENGER MODS...................................        8,425  ...........        8,425  ...........        8,425
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -7,604  ...........  ...........       -7,604
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
MLRS LAUNCHER SYSTEMS...........................          85,387         110,387         143,787         123,787
    National Guard launchers....................               0          25,000          50,000               0
    COTS to procure joint technical architecture               0               0           8,400           8,400
    National Guard MLRS support equipment.......  ..............  ..............  ..............          30,000
----------------------------------------------------------------------------------------------------------------

        Procurement of Weapons and Tracked Combat Vehicles, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           PROCUREMENT OF W&TCV, ARMY
BRADLEY BASE SUSTAINMENT.......................      285,844      371,844      283,844  ...........      356,844
BFVS SERIES (MOD)..............................       58,998       58,998       78,998  ...........       75,498
IMPROVED RECOVERY VEHICLE (M88 MOD)............       38,175       38,175       55,075           21       51,075
HEAVY ASSAULT BRIDGE (HAB) SYS (MOD)...........       50,401       50,401       43,748  ...........       50,401
M1 ABRAMS TANK (MOD)...........................       53,301       58,301       46,601  ...........       36,301
ABRAMS UPGRADE PROGRAM.........................      412,661      403,661      408,061  ...........      419,061
ARMOR MACHINE GUN, 7.62MM M240 SERIES..........        6,496        6,496       12,996          673       11,496
GRENADE LAUNCHER, AUTO, 40MM, MK19-3...........       12,191       12,191       15,191          697       15,191
M16 RIFLE MODS.................................        6,241        6,241        5,241  ...........        5,241
DIRECT SUPPORT ELECTRICAL TEST SETS (DSETS)....  ...........  ...........       25,000  ...........       20,000
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -2,068  ...........  ...........       -2,068
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
BRADLEY BASE SUSTAINMENT........................         285,844         371,844         283,844         356,844
    A0 to ODS variant...........................               0          80,000               0          70,000
    AN/VIC-3....................................               0           6,000               0           3,000
    Software delays.............................               0               0          -2,000          -2,000
BFVS SERIES (MOD)...............................          58,998          58,998          78,998          75,498
    Reactive armor tiles........................               0               0          20,000          16,500
M1 ABRAMS TANK (MOD)............................          53,301          58,301          46,601          36,301
    AN/VIC-3....................................               0           5,000               0           3,000
    M1A1D program savings.......................               0          -6,700               0         -20,000
ABRAMS UPGRADE PROGRAM..........................         412,661         403,661         408,061         419,061
    M1A1D termination...........................               0         -20,000               0               0
    Tank upgrades...............................               0          11,000               0          11,000
    Overhead rates--M1A2 program................               0          -4,600               0          -4,600
DIRECT SUPPORT ELECTRICAL TEST SETS (DSETS).....               0               0          25,000          20,000
    Abrams upgrade program......................               0               0           5,000           4,000
    BFIST.......................................               0               0           5,000           4,000
    Bradley C2 vehicle..........................               0               0           5,000           4,000
    Bradley legacy fleet........................               0               0           5,000           4,000
    Bradley stinger.............................               0               0           5,000           4,000
----------------------------------------------------------------------------------------------------------------

                    Procurement of Ammunition, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
        PROCUREMENT OF AMMUNITION, ARMY
CTG, 5.56MM, ALL TYPES.........................       91,620       97,220       77,620  ...........       94,420
CTG, 7.62MM, ALL TYPES.........................       10,463       14,463        7,263  ...........       12,463
CTG, 25MM, ALL TYPES...........................       59,618       80,418       71,618  ...........       80,418
CTG MORTAR 60MM PRACTICE M766..................  ...........        5,000  ...........  ...........        2,500
CTG MORTAR 120MM HE M934 W/MO FUZE.............       29,087       38,087       29,087           33       37,087
CTG MORTAR 120MM ILLUM XM930 W/MTSQ FZ.........  ...........        8,500  ...........  ...........        5,000
CTG 120MM APFSDS-T M829A2/M829E3...............        9,732       19,732        9,732            2       14,732
CTG 120MM HEAT-MP-T M830A1.....................  ...........       10,000       15,000  ...........       10,000
CTG ARTY 105MM DPICM XM915.....................  ...........        7,500  ...........  ...........  ...........
CTG ARTY 105 M927..............................  ...........        5,000  ...........  ...........        5,000
PROJ ARTY 155MM SADARM M898....................       56,542       36,542       31,542          550       31,542
PROJ ARTY 155MM HE M107........................       25,650       35,650       25,650          124       32,650
FUZE ARTY ELEC TIME M767.......................  ...........  ...........        5,000  ...........        4,000
MINE AT M87 (VOLCANO)..........................  ...........  ...........       15,000  ...........       12,000
BUNKER DEFEATING MUNITION (BDM)................  ...........       10,000  ...........  ...........       10,000
PROVISION OF INDUSTRIAL FACILITIES.............       47,660       52,560       47,660  ...........       50,660
CONVENTIONAL AMMO DEMILITARIZATION.............       97,983       97,983       82,983  ...........       82,983
----------------------------------------------------------------------------------------------------------------

                     kinetic energy tank ammunition

      The conferees direct the Army to submit by December 1, 
1998, their plan for funding the M829A2 at a minimum sustaining 
rate until the M829E3 enters production.

                         m830a1 tank ammunition

      The conferees encourage the Army to include funding for 
the M830A1 and M830A1 to XM908 conversion programs in its 
fiscal year 2000 budget submission.

                        Other Procurement, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
            OTHER PROCUREMENT, ARMY
TACTICAL TRAILERS/DOLLY SETS...................       11,948       11,948       19,448  ...........       17,948
HI MOB MULTI-PURP WHLD VEH (HMMWV).............       12,144       58,476       77,844          110       67,144
FAMILY OF MEDIUM TACTICAL VEH (FMTV)...........      332,044      312,424      382,044        2,038      332,044
MEDIUM TRUCK EXTENDED SVC PGM (ESP)............       37,247       37,247       63,647        1,085       50,447
LINE HAUL ESP..................................        4,883        4,983        4,883           62        4,983
HEAVY ARMORED SEDAN............................        5,956        5,956  ...........           54        5,956
PASSENGER CARRYING VEHICLES....................          867          867  ...........           37          867
GENERAL PURPOSE VEHICLES.......................        1,059        1,059  ...........  ...........        1,059
PROJECT MANAGEMENT SUPPORT.....................        2,437        2,437        1,437  ...........        1,437
SYSTEM FIELDING SUPPORT (TACOM)................        4,166        4,166        3,166  ...........        3,166
SMART-T (SPACE)................................       57,743       33,143       57,743  ...........       57,743
ARMY DATA DISTRIBUTION SYSTEM (ADDS)...........       24,048       27,048       52,048  ...........       47,048
SINCGARS FAMILY................................       13,212       51,212       63,212  ...........       57,212
ACUS MOD PROGRAM (WIN-T/T).....................       97,080       97,080      132,080  ...........      129,830
INFORMATION SYSTEM SECURITY PROGRAM--ISSP......       29,714       31,714       33,714  ...........       33,714
INFORMATION SYSTEMS............................       91,213       91,213      122,213  ...........      119,213
ALL SOURCE ANALYSIS SYS (ASAS) (TIARA).........       24,117       24,117       24,117  ...........       30,867
JTT/CIBS-M (TIARA).............................        5,340       10,340        5,340           56       10,340
IEW--GND BASE COMMON SENSORS (TIARA)...........       25,388       14,188  ...........  ...........       12,071
JOINT STARS (ARMY) (TIARA).....................       87,229       90,229       87,229  ...........       87,229
TACTICAL EXPLOITATION OF NATIONAL CAPABILITY...        1,690        1,690        1,690  ...........        6,090
COMMON IMAGERY GRD/SURFACE SYS.................  ...........        2,508  ...........  ...........        2,508
ITEMS LESS THAN $2.0M (TIARA)..................          530          530        2,530  ...........        1,530
SHORTSTOP......................................  ...........       15,000  ...........  ...........       10,000
NIGHT VISION DEVICES...........................       29,636       38,636       53,136  ...........       43,636
LTWT VIDEO RECON SYSTEM (LWVRS)................        3,364        3,364        9,364          110        8,364
MOD OF IN-SVC EQUIP (TAC SURV).................        5,477       23,227        5,477  ...........       16,477
LOGTECH........................................        3,238        3,238        9,238  ...........        8,238
GUN LAYING AND POS SYS (GLPS)..................       11,781        6,331       11,781          126        6,331
ISYSCON EQUIPMENT..............................       34,175       10,175       34,175  ...........       15,175
ARMY TRAINING XX1 MODERNIZATION................       32,635  ...........       32,635  ...........       32,635
AUTOMATED DATA PROCESSING EQUIP................      130,712      120,712      130,712  ...........      123,712
ITEMS LESS THAN $2.0M (CSS-EQ).................        4,749        4,749        4,749  ...........        5,749
HYDRAULIC EXCAVATOR............................        6,402        8,902        6,402           26        6,402
CRANE, WHEEL MTD, 25T, 3/4 CU YD, RT...........       11,553       11,553       11,553           47       19,553
PUSHER TUG, SMALL..............................        4,269        8,569        4,269            3        8,569
FLOATING CRANE, 100-250 TON....................  ...........       15,000  ...........            1       15,000
GENERATORS AND ASSOCIATED EQUIP................       82,749       69,049       82,749  ...........       69,049
ROUGH TERRAIN CONTAINER CRANE..................       13,615        3,615       13,615           30        8,615
TRAINING DEVICES, NONSYSTEM....................       56,755       67,755       44,655  ...........       60,755
SIMNET/CLOSE COMBAT TACTICAL TRAINER...........      113,927       76,527       88,927  ...........       88,927
FIRE SUPPORT COMBINED ARMS TACTICAL TRAINER....       28,124  ...........       28,124  ...........       16,000
INTEGRATED FAMILY OF TEST EQUIPMENT (IFTE).....       54,051       69,051       64,051  ...........       66,551
BASE LEVEL COM'L EQUIPMENT.....................        9,697        9,697        9,697  ...........       12,697
MODIFICATION OF IN-SVC EQUIPMENT (OPA-3).......       17,667       22,467       17,667  ...........       22,667
VEHICLE LEASES.................................  ...........  ...........          400  ...........  ...........
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -4,030  ...........  ...........       -4,030
R-2000 ENGINE FLUSH SYSTEM.....................  ...........        5,000  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
ACUS MOD PROGRAM (WIN-T/T)..................................       97,080       97,080      132,080      129,830
    Program increase........................................            0            0       35,000       30,000
    High speed multiplexer (moved from 203761A).............            0            0            0        2,750
INFORMATION SYSTEM SECURITY PROGRAM--ISSP...................       29,714       31,714       33,714       33,714
    ``Uninterruptible'' universal power supply sys..........            0        2,000            0        1,000
    Tactical Secure Terminal Equipment......................            0            0        4,000        3,000
ALL SOURCE ANALYSIS SYS (ASAS) (TIARA)......................       24,117       24,117       24,117       30,867
    Analysis control team (Note: Transferred from 0203761A).            0            0            0        6,750
JOINT STARS (ARMY) (TIARA)..................................       87,229       90,229       87,229       87,229
    Common Ground Station (Note: Of the available funds,
     $2,000,000 is only to procure additional workstations
     for field units in Korea and Bosnia)...................            0        3,000            0            0
TACTICAL EXPLOITATION OF NATIONAL CAPABILITY................        1,690        1,690        1,690        6,090
    Grendier Brat (Note: Transferred from 0203761A).........            0            0            0        4,400
NIGHT VISION DEVICES........................................       29,636       38,636       53,136       43,636
    Increase procurement--various sytems....................            0        9,000            0        6,000
    25mm gen III image intensifier..........................            0            0       10,000        8,000
LTWT VIDEO RECON SYSTEM (LWVRS).............................        3,364        3,364        9,364        8,364
    Increase procurement....................................            0            0        6,000        5,000
MOD OF IN-SVC EQUIP (TAC SURV)..............................        5,477       23,227        5,477       16,477
    Firefinder..............................................            0       16,000            0       10,000
    Automated Integrated Surveying Instrument...............            0        1,750            0        1,000
AUTOMATED DATA PROCESSING EQUIP.............................      130,712      120,712      130,712      123,172
    Ammo AIT................................................            0       10,000            0       10,000
    JCALS...................................................            0      -20,000            0      -17,000
ITEMS LESS THAN $2.0M (CSS-EQ)..............................        4,749        4,749        4,749        5,749
    Lightweight maintenance shelters........................            0            0      [2,000]        1,000
HYDRAULIC EXCAVATOR.........................................        6,402        8,902        6,402        6,402
    Hydraulic excavator--active.............................            0        1,000            0            0
    Hydraulic excavator--reserves (Note: Funds are provided
     under Modification of In-service Equipment)............            0        1,500            0            0
CRANE, WHEEL MTD, 25T, 3/4 CU YD, RT........................       11,553       11,553       11,553       19,553
    All terrain cranes for the Army reserves................            0            0            0        8,000
TRAINING DEVICES, NONSYSTEM.................................       56,755       67,755       44,655       60,755
    Firefighter trainers....................................            0        3,000        4,000        3,000
    Aerial weapons scoring system...........................            0        3,000            0        2,000
    Engagement skills trainers--NTL GRD.....................            0        5,000            0        3,000
    MILES...................................................            0            0      -16,100       -8,000
    MILES--Cope Thunder exercise............................            0            0      [4,000]        4,000
BASE LEVEL COM'L EQUIPMENT..................................        9,697        9,697        9,697       12,697
    R-2000 Engine Flush System (Note: House provided funds
     under R-2000 Engine Flush System project)..............            0            0            0        3,000
MODIFICATION OF IN-SVC EQUIPMENT (OPA-3)....................       17,667       22,467       17,667       22,667
    Laser leveling systems..................................            0        4,800            0        3,500
    Laser leveling systems for hydraulic excavator systems
     (Note: House provided funds under Hydraulic Excavator
     Systems)...............................................            0            0            0        1,500
R-2000 ENGINE FLUSH SYSTEM (Note: Project is funded under
 base level com'l equipment)................................            0        5,000            0            0
----------------------------------------------------------------------------------------------------------------

                            tactical radios

      The conferees encourage FORSCOM to procure off-the-shelf 
radios such as the AN/PRC-138 and AKLR/MIBTR to meet the 82nd 
Airborne Division's requirement to replace its aging non-secure 
radios.

                       Aircraft Procurement, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           AIRCRAFT PROCUREMENT, NAVY
AV-8B (V/STOL) HARRIER.........................      282,713      279,513      282,713           12      279,513
F/A-18E/F (FIGHTER) HORNET.....................    2,787,783    2,568,083    2,787,783           30    2,772,783
V-22 (MEDIUM LIFT).............................      610,766      696,266      610,766            7      610,766
CH-60..........................................      106,027      144,027      106,027            5      125,027
T-45TS (TRAINER) GOSHAWK.......................      282,667      267,167      282,667           15      293,567
T-45TS (TRAINER) GOSHAWK (AP-CY)...............       60,159       60,159        8,000  ...........        8,000
KC-130J........................................  ...........      112,400  ...........            2      112,400
EA-6 SERIES....................................       75,735      114,735       80,735  ...........       95,735
AV-8 SERIES....................................       99,109      112,409       99,109  ...........       86,509
F-14 SERIES....................................      223,661      224,361      223,661  ...........      216,361
F-18 SERIES....................................      198,049      211,149      198,049  ...........      194,149
AH-1W SERIES...................................       22,394       27,894       33,394  ...........       27,894
H-1 SERIES.....................................       18,220       30,220       18,220  ...........       26,220
EP-3 SERIES....................................        5,437        6,937        7,437  ...........        7,437
P-3 SERIES.....................................      268,633      341,033      279,133  ...........      291,633
S-3 SERIES.....................................       45,997       69,797       45,997  ...........       45,997
E-2 SERIES.....................................       91,502       96,502       91,502  ...........       93,502
CARGO/TRANSPORT A/C SERIES.....................       27,179       27,179       38,179  ...........       27,179
E-6 SERIES.....................................       64,660       60,060       64,660  ...........       64,660
COMMON ECM EQUIPMENT...........................       37,375       33,075       58,875  ...........       37,075
COMMON AVIONICS CHANGES........................      104,697      109,197      104,697  ...........      102,697
SPARES AND REPAIR PARTS........................      727,838      719,438      727,838  ...........      727,838
COMMON GROUND EQUIPMENT........................      330,952      315,552      333,952  ...........      321,952
AIRCRAFT INDUSTRIAL FACILITIES.................       13,753       11,953       13,753  ...........       11,953
ADVISORY AND ASSISTANCE SERVICES...............  ...........      -15,394  ...........  ...........      -15,394
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
F/A-18E/F (FIGHTER) HORNET......................       2,787,783       2,568,083       2,787,783       2,772,783
    Reduction of aircraft.......................               0        -204,700               0               0
    Program reduction...........................               0         -15,000               0         -15,000
T-45TS (TRAINER) GOSHAWK........................         282,667         267,167         282,667         293,567
    Authorization reduction, GSE/training equip.               0         -15,500               0               0
    Aircraft pricing............................               0               0               0          10,900
AV-8 SERIES.....................................          99,109         112,409          99,109          86,509
    Transfer from RDT&E.........................               0          11,000               0               0
    ALR-67 antennas.............................               0           2,300               0           2,300
    OSCAR.......................................               0               0               0         -14,900
F-14 SERIES.....................................         223,661         224,361         223,661         216,361
    LANTIRN.....................................               0           8,000               0               0
    Authorization reduction, structural mods....               0          -7,300               0          -7,300
F-18 SERIES.....................................         198,049         211,149         198,049         194,149
    Modification of Naval Reserve aircraft......               0          17,000               0               0
    Authorization reduction, installation costs.               0          -3,900               0          -3,900
EP-3 SERIES.....................................           5,437           6,937           7,437           7,437
    Flat panel displays.........................               0           1,500               0             800
    JSAF test...................................               0               0           2,000           1,200
P-3 SERIES......................................         268,633         341,033         279,133         291,633
    Transfer from RDT&E.........................               0          28,700               0               0
    Lightweight environmentally sealed parachute
     assembly...................................               0          10,000           7,400           7,400
    One additional AIP kit......................               0          12,200          12,200          12,200
    Specific emitter identification.............               0          15,000               0           7,500
    Advanced digital recorders..................               0           6,500               0           5,000
    Weapon system trainer (Note: The conferees
     agree to the Senate direction that up to
     $5,000,000 is available for the replacement
     data storage system.)......................               0               0          -9,100          -9,100
COMMON ECM EQUIPMENT............................          37,375          33,075          58,875          37,075
    AN/ALR-67(V)2 radar warning receiver
     upgrades...................................               0           5,000           5,000           5,000
    IDECM, transfer to RDT&E....................               0          -9,300               0          -9,300
    AN/APR-39 radar warning receivers...........               0               0           6,500           4,000
    ALQ-165 suites..............................               0               0          10,000               0
COMMON AVIONICS CHANGES.........................         104,697         109,197         104,697         102,697
    Transfer from RDT&E.........................               0           6,500               0               0
    Authorization reduction, ARC-210 radio
     installs...................................               0          -2,000               0          -2,000
COMMON GROUND EQUIPMENT.........................         330,952         315,552         333,952         321,952
    Authorization reduction, CASS cost growth...               0         -15,400               0         -12,000
    Naval Reserve direct support squadron
     readiness training.........................               0               0           3,000           3,000
----------------------------------------------------------------------------------------------------------------

                       Weapons Procurement, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           WEAPONS PROCUREMENT, NAVY
TRIDENT II (AP-CY).............................       62,800       62,800       42,800  ...........       52,800
TOMAHAWK.......................................      129,758       33,258      129,758  ...........       33,258
AMRAAM.........................................       62,641       55,641       51,641          115       51,641
JSOW...........................................      125,207      110,207      125,207          328      117,707
SLAM-ER........................................  ...........       39,506  ...........           54       39,506
STANDARD MISSILE...............................      225,702      205,702      210,702          120      215,602
PENGUIN........................................  ...........       10,000        7,500  ...........  ...........
AERIAL TARGETS.................................       75,474       72,774       75,474  ...........       72,774
DRONES AND DECOYS..............................          298          298       10,298  ...........        8,298
HARPOON MODS...................................       39,506  ...........       39,506  ...........  ...........
WEAPONS INDUSTRIAL FACILITIES..................       27,133       24,333       27,133  ...........       26,133
MK-48 TORPEDO ADCAP MODS.......................       52,813       50,613       52,813  ...........       50,163
CIWS MODS......................................        2,778        6,778       12,778  ...........       10,778
5/54 GUN MOUNT MODS............................          909          909       15,909  ...........       13,909
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -4,126  ...........  ...........       -4,126
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
AMRAAM..........................................          62,641          55,641          51,641          51,641
    Program reduction/merger savings............               0          -7,000         -11,000         -11,000
STANDARD MISSILE................................         225,702         205,702         210,702         215,602
    Support costs...............................               0         -20,000               0          -4,000
    Block IVA support costs.....................               0               0          -8,900               0
    Program reduction/merger savings............               0               0          -6,100          -6,100
----------------------------------------------------------------------------------------------------------------

            Procurement of Ammunition, Navy and Marine Corps

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
 PROCUREMENT OF AMMUNITION, NAVY & MARINE CORP
GENERAL PURPOSE BOMBS..........................       22,904       22,904       34,904  ...........       31,904
JDAM...........................................       41,363       41,363       41,363          747       38,063
PRACTICE BOMBS.................................       40,134       60,134       40,134  ...........       55,134
EXTENDED RANGE GUIDED MUNITIONS (ERGM).........       27,452       27,452       37,452  ...........       27,452
5.56 MM, ALL TYPES.............................       25,750       26,350       26,250  ...........       26,250
.50 CALIBER....................................        1,180        1,180        1,680  ...........        1,680
60 MM, ALL TYPES...............................  ...........  ...........        8,200  ...........        7,000
120MM, ALL TYPES...............................       14,054       14,054       18,054  ...........       16,054
120MM TPCSDS-T M865............................  ...........          500  ...........  ...........          500
120 MM TP-T M831...............................  ...........          700  ...........  ...........          700
CTG 25MM, ALL TYPES............................        3,860        4,760        4,860  ...........        4,760
9 MM ALL TYPES.................................        2,332        3,132        3,332  ...........        3,132
GRENADES, ALL TYPES............................        4,893        8,093        5,893  ...........        5,893
ROCKETS, ALL TYPES.............................       21,346       38,346       39,346  ...........       39,346
DEMOLITION MUNITIONS, ALL TYPES................        7,737        8,337        7,737  ...........        8,337
FUZE, ALL TYPES................................       13,645       13,645       16,145  ...........       15,145
ADVISORY AND ASSISTANCE SERVICES...............  ...........         -736  ...........  ...........         -736
----------------------------------------------------------------------------------------------------------------

                   Shipbuilding and Conversion, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
        SHIPBUILDING & CONVERSION, NAVY
DDG-51.........................................    2,672,078    2,662,078    2,672,078            3    2,667,078
LHD-8 ADVANCE PROCUREMENT......................  ...........  ...........       50,000  ...........       45,000
OUTFITTING.....................................       95,680       80,680       95,680  ...........       90,680
POST DELIVERY..................................      123,277      114,977      123,277  ...........      117,277
ADVISORY AND ASSISTANCE SERVICES...............  ...........      -10,520  ...........  ...........      -10,520
----------------------------------------------------------------------------------------------------------------

                            nimitz overhaul

      The conferees withdraw direction in the fiscal year 1998 
conference report that $20,000,000 of the amount budgeted for 
the Nimitz overall is only for the ship self-defense system, 
since the Navy has requested and this Act provides funds in the 
fiscal year 1999 Other Procurement, Navy appropriation for the 
same purpose.

                                 lpd-17

      The Navy desires to move to the more capable advanced 
enclosed mast system (AEMS) for the LPD-17 class ships and has 
informed the Appropriations Committees it has sufficient funds 
for this program. The conferees direct the Navy to include the 
AEMS on LPD 17 and 18 and to provide sufficient funds for the 
AEMS on subsequent ships. Should additional funding be required 
the Navy is directed to request reprogramming or ship cost 
adjustments next year. The conferees concur with the House 
direction regarding the evaluation of combat systems and ship 
self defense alternatives for the LPD-17 class ships. Currently 
planned systems are not sufficient to meet the anti-ship cruise 
missile and other threat scenarios. The report to the 
Appropriations Committees shall include, but not be limited to, 
alternatives such as multi-function radars together with an 
evolved sea sparrow to enhance cruise missile defense and Navy 
plans to ensure the post delivery availability or backfit of 
enhanced combat system and ship self defense alternatives for 
the LPD-17 class ships.

                        Other Procurement, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
            OTHER PROCUREMENT, NAVY
OTHER GENERATORS...............................        9,637        9,637        8,437  ...........        8,437
OTHER NAVIGATION EQUIPMENT.....................       45,259       63,259       57,259  ...........       59,259
POLLUTION CONTROL EQUIPMENT....................      149,669      130,269      123,669  ...........      130,269
HM&E ITEMS UNDER $2.0 MILLION..................       58,121       55,021       58,121  ...........       56,121
REACTOR POWER UNITS............................      227,338      200,038      227,338  ...........      227,338
REACTOR COMPONENTS.............................      211,382      200,882      211,382  ...........      211,382
NUCLEAR ALTERATIONS............................       96,752       90,752       96,752  ...........       96,752
RADAR SUPPORT..................................        1,260       23,260       10,260  ...........       23,260
FFG UPGRADES...................................  ...........  ...........  ...........  ...........       11,000
AN/SQQ-89 SURF ASW COMBAT SYSTEM...............       27,432       18,732       27,432  ...........       23,432
SSN ACOUSTICS..................................      133,535      132,335      148,535  ...........      144,735
SONAR SWITCHES AND TRANSDUCERS.................       12,785       11,785       12,785  ...........       12,785
C-3 COUNTERMEASURES............................        6,080       12,580        6,080  ...........       10,080
BATTLE GROUP PASSIVE HORIZON EXTEN.............       73,542       73,542       65,328  ...........       65,328
NAVY TACTICAL DATA SYSTEM......................           34       10,034           34  ...........        8,034
COOPERATIVE ENGAGEMENT CAPABILITY..............       47,332       82,332       19,432  ...........       82,332
COMMON IMAGERY GRD/SURFACE SYS.................  ...........       65,827  ...........  ...........       65,827
MINESWEEPING SYSTEM REPLACEMENT................       32,934       17,034       17,039  ...........       17,039
STRATEGIC PLATFORM SUPPORT EQUIP...............       12,687       11,687       12,687  ...........       12,687
NATIONAL AIR SPACE SYSTEM......................       28,201  ...........       28,201  ...........        8,018
ID SYSTEMS.....................................       15,330       13,430       15,330  ...........       13,430
JMCIS TACTICAL/MOBILE..........................        3,982       25,982        3,982  ...........       23,982
INTEG COMBAT SYSTEM TEST FACILITY..............        4,482        4,482        6,482  ...........        6,482
SHORE ELEC ITEMS UNDER $2.0 MILLION............        2,559       10,559        2,559  ...........       10,559
SHIPBOARD TACTICAL COMMUNICATIONS..............       34,397       34,397       38,397  ...........       37,397
SHIP COMM ITEMS UNDER $2.0 MILLION.............       24,220       22,320       24,220  ...........       22,320
SUBMARINE COMMUNICATION EQUIPMENT..............       64,583       64,583       50,283  ...........       60,583
SATCOM SHIP TERMINALS (SPACE)..................      145,193      155,193      145,193  ...........      152,193
INTEGRATED BROADCAST SERVICE...................  ...........       10,271  ...........  ...........       10,271
JEDMICS........................................  ...........        5,000       10,000  ...........        7,000
NAVAL SHORE COMMUNICATIONS.....................      113,546      110,546      113,546  ...........      110,546
WEAPONS RANGE SUPPORT EQUIPMENT................        8,064       13,064       23,064  ...........       26,064
AIRCRAFT LAUNCH & RECOVERY EQUIPMENT...........       39,749       35,649       39,749  ...........       35,649
METEOROLOGICAL EQUIPMENT.......................       32,892       28,492       32,892  ...........       28,492
GUN FIRE CONTROL EQUIPMENT.....................       20,203       35,203       20,203  ...........       31,203
ENGAGEMENT SYSTEMS SUPPORT.....................          307  ...........          307  ...........  ...........
SHIP SELF DEFENSE SYSTEM.......................       22,944       43,944       22,944  ...........       38,944
AEGIS SUPPORT EQUIPMENT........................       83,169       85,169       95,169  ...........       94,169
SURFACE TOMAHAWK SUPPORT EQUIPMENT.............       90,209      103,009       90,209  ...........       98,009
STRATEGIC MISSILE SYSTEMS EQUIP................      283,612      278,612      283,612  ...........      278,612
ANTI-SHIP MISSILE DECOY SYSTEM.................       21,504        8,004       22,504  ...........       22,504
SURFACE TRAINING DEVICE MODS...................        5,891        6,891        5,891  ...........        6,891
ARMORED SEDANS.................................          255          255  ...........  ...........          255
PASSENGER CARRYING VEHICLES....................        3,224        3,224          246  ...........        2,540
POLLUTION CONTROL EQUIPMENT....................       28,039       22,539       28,039  ...........       21,039
VEHICLE LEASING................................  ...........  ...........          806  ...........          684
TRAINING SUPPORT EQUIPMENT.....................        2,174        7,174        2,174  ...........        5,174
COMMAND SUPPORT EQUIPMENT......................       17,916       19,916       17,916  ...........       19,916
OPERATING FORCES SUPPORT EQUIPMENT.............        4,684        6,184        4,684  ...........        6,184
SPARES AND REPAIR PARTS........................      279,028      247,528      271,028  ...........      247,528
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -4,594  ...........  ...........       -4,594
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
OTHER NAVIGATION EQUIPMENT......................          45,259          63,259          57,259          59,259
    WSN-7 ring laser gyro.......................               0          12,000          12,000          10,000
    WQN-2 doppler sonar velocity log............               0           6,000               0           2,000
    Doppler sonar velocity log alternate
     competitive source.........................               0               0               0           2,000
    (Note: This item was funded in RDT&E, Navy
     in the Senate bill)
POLLUTION CONTROL EQUIPMENT.....................         149,669         130,269         123,669         130,269
    Authorization reduction.....................               0         -19,400               0         -19,400
    Shore-based program.........................               0               0         -15,000               0
    Ship-based program..........................               0               0         -11,000               0
    (Note: The conferees direct that none of the
     reduction be applied to ship conversions of
     refrigeration equipment from refrigerant
     CFC-114 to ozone-friendly CFC substitutes)
FFG UPGRADES....................................               0               0               0          11,000
    (Note: These funds are only for FFG upgrades
     to support the Naval Reserve Force Western
     Hemisphere mission. Funding will allow for
     upgrades that include, but are not limited
     to, consoles, radar, and tracking software
     as well as maintenance logistics costs)
SSN ACOUSTICS...................................         133,535         132,335         148,535         144,735
    Authorization reduction.....................               0          -1,200               0               0
    Acoustic rapid COTS insertion...............               0               0          15,000          11,200
C-3 COUNTERMEASURES.............................           6,080          12,580           6,080          10,080
    Outlaw Bandit ship signature reduction kits.               0           6,000               0           4,000
    (Note: Outlaw Bandit funds provided in this
     Act in both RDT&E and OPN are of special
     interest)
    Cancelled MK-12 field changes...............               0          -1,900               0          -1,900
JMCIS TACTICAL/MOBILE...........................           3,982          25,982           3,982          23,982
    Littoral surveillance system................               0          12,000               0          12,000
    (Note: Funds are only to procure an
     engineering development model for
     operational use to support Naval Reserve
     operations of the Pacific Disaster Center).
    Mobile inshore undersea warfare van
     improvements...............................               0          10,000               0           8,000
    (Note: $4,000,000 is for MIUW improvements
     and $4,000,000 is only to establish
     integrated logistics support for the MIUW
     system)
    Submarine high data rate communications.....               0               0         -14,300          -4,000
WEAPONS RANGE SUPPORT EQUIPMENT.................           8,064          13,064          23,064          26,064
    Rangeless air combat training...............               0           5,000               0           5,000
    Mobile remote emitter simulator for 2nd
     location...................................               0               0           5,000           3,000
    PMRF upgrades...............................               0               0          10,000          10,000
AEGIS SUPPORT EQUIPMENT.........................          83,169          85,169          95,169          94,169
    Wireless sensors............................               0           2,000               0           1,000
    Smart ship equipment........................               0               0          12,000          10,000
SURFACE TOMAHAWK SUPPORT EQUIPMENT..............          90,209         103,009          92,209          98,009
    Afloat planning system......................               0          10,000               0           5,000
    Tactical Tomahawk...........................               0           2,800               0           2,800
----------------------------------------------------------------------------------------------------------------

                       Procurement, Marine Corps

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           PROCUREMENT, MARINE CORPS
MODIFICATION KITS (TRKD VEH)...................        5,726        5,726       25,326  ...........        7,726
MOD KITS (ARTILLERY)...........................        1,809        1,809        4,309  ...........        2,809
155MM LIGHTWEIGHT TOWED HOWITZER...............       10,002       10,002       10,002  ...........  ...........
PEDESTAL MOUNTED STINGER (PMS) (MYP)...........          218          218        5,218  ...........        3,218
AUTO TEST EQUIP SYS............................       19,312       19,312       34,312  ...........       29,312
MOD KITS (INTEL)...............................        4,791        4,791        7,891  ...........        7,391
ITEMS LESS THAN $2.OM (INTELL).................  ...........        2,000  ...........  ...........        2,000
NIGHT VISION EQUIPMENT.........................       11,563       11,563       50,063  ...........       33,663
COMMAND POST SYSTEMS...........................        7,134       12,134        7,134  ...........       17,134
COMM & ELEC INFRASTRUCTURE SUPPORT.............       57,862       89,862      131,962  ...........      105,862
MOD KITS MAGTF C41.............................       27,427       27,427       27,427  ...........       33,927
COMMERCIAL PASSENGER VEHICLES..................        1,248        1,248           53           37        1,248
COMMERCIAL CARGO VEHICLES......................        8,821        8,821        7,624  ...........        8,821
VEHICLE LEASES.................................  ...........  ...........          611  ...........  ...........
MEDIUM TACTICAL VEHICLE REPLACEMENT............       83,717       69,717       83,717          240       69,717
LT TACTICAL VEHICLE REMANUFACTURE (LTRV).......       39,263       72,763       66,263  ...........       69,263
POWER EQUIPMENT ASSORTED.......................        5,097        5,097       14,597  ...........        9,597
SHOP EQ CONTACT MAINTENANCE (SECM).............        5,972        5,972       11,372  ...........        8,372
COMMAND SUPPORT EQUIPMENT......................          514        4,914          514  ...........        4,914
MATERIAL HANDLING EQUIP........................        6,453       11,453       16,853  ...........       11,453
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -1,140  ...........  ...........       -1,140
----------------------------------------------------------------------------------------------------------------

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
MODIFICATION KITS (TRKD VEH)....................           5,726           5,726          25,326           7,726
    Mod kits for tracked vehicles...............               0               0           4,600           2,000
    JTF enhanced core communications............               0               0          15,000               0
    (Note: Funds are provided under Command Post
     Systems)
AUTO TEST EQUIPMENT SYSTEM......................          19,312          19,312          34,312          29,312
    DSESTS-LAV, TOW2 and Abrams.................               0               0          15,000          10,000
NIGHT VISION EQUIPMENT..........................          11,563          11,563          50,063          33,663
    Borelights..................................               0               0           1,000           1,000
    Medium power laser illuminator..............               0               0           3,800           2,000
Laser aiming modules............................               0               0           5,000           3,000
Gen III tubes...................................               0               0           6,100           6,100
AN/AVS-6 night vision goggle OMNI retrofit......               0               0          22,600          10,000
COMMAND POST SYSTEMS............................           7,134          12,134           7,134          17,134
    JTF Enhanced Core Communications............               0           5,000               0          10,000
    (Note: Senate added $15,000,000 under
     Modification Kits (Trked Vehicles))
COMM & ELEC INFRASTRUCTURE SUPPORT..............          57,862          89,862         131,962         105,862
    Upgrades--Quantico, 29 Palms, Barstow.......               0          32,000               0          32,000
    Upgrades non-specific.......................               0               0          74,100          16,000
    (Note: Funds are provided for Quantico MCB,
     29 Palms MCB, Barstow MCB, and Albany MCB)
MOD KITS MAGTF C41..............................          27,427          27,427          27,427          33,927
MEWSS...........................................               0               0               0           6,500
----------------------------------------------------------------------------------------------------------------

               direct support electrical system test sets

      The conferees urge the DoD to include the general purpose 
Direct Support Electrical System Test Sets (DSESTS) in the DoD 
automatic test system family. DSESTS are currently in use by 
the Army and Marine Corps as automatic test equipment (ATE) on 
several wheeled and tracked combat vehicles. DSESTS are proven 
test equipment that are comparable to other ATE included in the 
ATE family.

                    Aircraft Procurement, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
        AIRCRAFT PROCUREMENT, AIR FORCE
ADVANCED TACTICAL FIGHTER (F-22)...............      595,094      525,094      595,094            2      581,094
F-16 C/D (MYP).................................  ...........       60,000  ...........            1       30,000
EC-130J........................................  ...........       51,500  ...........            1       85,000
C-130J.........................................       63,782      237,782       30,000  ...........       30,000
WC-130.........................................  ...........       59,700       75,400            1       75,400
JPATS..........................................      107,086      102,186       97,186           22      106,186
CIVIL AIR PATROL A/C...........................        2,619        3,000        2,619           27        3,000
SMALL VCX......................................  ...........  ...........       79,600            1       39,800
E-8C (AP-CY)...................................  ...........       72,000  ...........  ...........       36,000
B-1B...........................................       91,614       91,614       58,514  ...........       91,614
B-52...........................................       38,308       38,308       48,608  ...........       46,608
F-15...........................................      196,579      241,579      236,579  ...........      241,579
F-16...........................................      229,319      235,319      239,219  ...........      239,119
C-5............................................       63,635       98,635       63,635  ...........       78,635
T-38...........................................       53,570       46,570       53,570  ...........       50,570
C-130..........................................      119,592      148,292      119,592  ...........      120,592
C-135..........................................      291,070      341,070      381,070  ...........      291,070
DARP...........................................      139,242      139,242       83,942  ...........      139,242
E-3............................................      114,181      107,181      114,181  ...........      114,181
E-4............................................       13,987       13,987        9,317  ...........        9,317
E-8............................................       44,179       44,179       50,179  ...........       44,179
PASSENGER SAFETY MODIFICATIONS.................  ...........       50,000       50,000  ...........       30,000
SPARES AND REPAIR PARTS........................      524,829      522,398      551,829  ...........      522,398
COMMON SUPPORT EQUIPMENT.......................      152,109      158,109      152,109  ...........      158,109
B-2A...........................................      189,869      275,869      159,869  ...........      239,869
F-16 POST PRODUCTION SUPPORT...................       27,289       42,289       27,289  ...........       37,289
WAR CONSUMABLES................................       49,396       49,396       49,396  ...........       34,720
MISC PRODUCTION CHARGES........................      221,464      207,864      210,564  ...........      207,064
COMMON ECM EQUIPMENT...........................        4,963       20,663        4,963  ...........       11,963
DARP...........................................      152,113      141,813      152,113  ...........      141,813
ADVISORY AND ASSISTANCE SERVICES...............  ...........      -11,490  ...........  ...........      -11,490
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
EC-130J.....................................................            0       51,500            0       85,000
  (Note: USAF will utilize all remaining unobligated EC-130J
   appropriations, regardless of fiscal year, to perform
   three Commando Solo (EC-130J) modifications)
C-130J......................................................       63,782      237,782       30,000       30,000
  Additional aircraft for Air National Guard................            0      174,000            0            0
  C-130J aircraft trainer...................................            0            0       30,000       30,000
  Active aircraft reduction.................................            0            0      -63,782      -63,782
JPATS.......................................................      107,086      102,186       97,186      106,186
  Three additional aircraft.................................            0        9,100        9,100        9,100
  GBTS concurrency..........................................            0      -14,000            0      -10,000
  GBTS delays...............................................            0            0      -15,000            0
  Other government cost growth..............................            0            0       -4,000            0
B-52........................................................       38,308       38,308       48,608       46,608
  Modifications for 94 aircraft fleet.......................            0            0       10,300       10,300
  Program reduction.........................................            0            0            0       -2,000
F-15........................................................      196,579      241,579      236,579      241,579
  ``E'' kit engine upgrades.................................            0       20,000       25,000       20,000
  ALQ-135 jammer............................................            0       25,000       15,000       25,000
F-16........................................................      229,319      235,319      239,219      239,119
  600 gal fuel tanks........................................            0        6,000        4,000        4,000
  Digital terrain system....................................            0            0        5,900        4,000
  ALR-56M...................................................            0            0            0        1,800
C-130.......................................................      119,592      148,292      119,592      120,592
  EC-130 modifications......................................            0       24,700            0            0
  Aluminum mesh system......................................            0        4,000            0        1,000
C-135.......................................................      291,070      341,070      381,070      291,070
  Reengine 2 KC-135 aircraft................................            0       50,000            0            0
  C-135 engine lease program................................            0            0       90,000            0
SPARES AND REPAIR PARTS.....................................      524,829      522,398      551,829      522,398
  PACER COIN................................................            0       -2,431            0       -2,431
  WC-130J modifications.....................................            0            0       27,000            0
B-2A........................................................      189,869      275,869      159,869      239,869
  B-2 upgrades..............................................            0       86,000            0       50,000
  Software investment.......................................            0            0      -20,000            0
  Initial spares............................................            0            0      -10,000            0
WAR CONSUMABLES.............................................       49,396       49,396       49,396       34,720
  LAU-117 contract savings..................................            0            0            0      -14,676
MISC PRODUCTION CHARGES.....................................      221,464      207,864      210,564      207,064
  Harm Targeting System.....................................            0      -10,100            0            0
  JTCTS.....................................................            0       -3,500            0       -3,500
  GPS user equipment production testing.....................            0            0       -3,000       -3,000
  GPS undefined hardware....................................            0            0       -2,700       -2,700
  Program reduction.........................................            0            0       -5,200       -5,200
COMMON ECM EQUIPMENT........................................        4,963       20,663        4,963       11,963
  ALQ-184 sustainment.......................................            0       10,000            0        5,000
  ALE-50 decoys.............................................            0        5,700            0        2,000
----------------------------------------------------------------------------------------------------------------

                DEFENSE AIRBORNE RECONNAISSANCE PROGRAM

      The conferees direct that the Air Force use the 
previously appropriated funds and, if necessary, a below 
threshold reprogramming to complete the demonstration and test 
of the Theater Airborne Warning System (TAWS). The conferees 
believe that any continuation of this program should be 
budgeted for in the Air Force's fiscal year 2000 request.

                     Missile Procurement, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
         MISSILE PROCUREMENT, AIR FORCE
AMRAAM.........................................      114,627       93,727       87,323          180       93,727
TARGET DRONES..................................       36,263       36,263       26,263  ...........       26,263
MM III MODIFICATIONS...........................       90,618      136,618      120,618  ...........      120,618
AGM-65H MAVERICK...............................  ...........        3,000  ...........  ...........        3,000
GLOBAL POSITIONING (MYP) SPACE (AP-CY).........       77,400  ...........       77,400  ...........  ...........
INERTIAL UPPER STAGES SPACE....................       48,012       46,012       37,812  ...........       44,012
TITAN SPACE BOOSTERS SPACE.....................      578,540      550,540      548,540  ...........      548,540
MEDIUM LAUNCH VEHICLE SPACE....................      188,406      177,406      188,406            5      177,406
DEFENSE SUPPORT PROGRAM SPACE..................       89,904       82,904       89,904  ...........       89,904
SPECIAL UPDATE PROGRAMS........................      224,299      204,999      131,299  ...........      151,299
SPECIAL PROGRAMS...............................      616,271      576,271      616,271  ...........      531,271
ADVISORY AND ASSISTANCE SERVICES...............  ...........      -11,676  ...........  ...........      -11,676
----------------------------------------------------------------------------------------------------------------

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
AMRAAM..........................................         114,627          93,727          87,323          93,727
    Merger savings/program reduction............               0         -20,900         -27,304         -20,900
    Restructured program........................               0               0         -10,000         -10,000
----------------------------------------------------------------------------------------------------------------

                  Procurement of Ammunition, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
      PROCUREMENT OF AMMUNITION, AIR FORCE
JOINT DIRECT ATTACK MUNITION...................       53,157       53,157       53,157        1,819       46,157
PRACTICE BOMBS.................................  ...........        5,000  ...........  ...........        2,500
ADVISORY AND ASSISTANCE SERVICES...............  ...........         -236  ...........  ...........         -236
----------------------------------------------------------------------------------------------------------------

                      Other Procurement, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
          OTHER PROCUREMENT, AIR FORCE
SEDAN, 4 DR 4X2................................          780          780  ...........  ...........  ...........
STATION WAGON, 4X2.............................          413          413  ...........  ...........  ...........
BUSES..........................................        5,174        5,174  ...........  ...........  ...........
AMBULANCES.....................................          306          306  ...........  ...........  ...........
ARMORED SEDAN..................................          239          239  ...........  ...........  ...........
TRUCK, CARGO-UTILITY, 3/4T, 4X4................        6,160        6,160  ...........  ...........  ...........
TRUCK, CARGO-UTILITY, 1/2T, 4X2................        2,612        2,612  ...........  ...........  ...........
TRUCK, PICKUP, 1/2T, 4X2.......................        3,379        3,379  ...........  ...........  ...........
TRUCK, PICKUP, COMPACT.........................        2,445        2,445  ...........  ...........  ...........
TRUCK, UTILITY.................................        3,347        3,347  ...........          124        3,347
CAP VEHICLES...................................          744        1,400          744  ...........        1,400
INTELLIGENCE DATA HANDLING SYS.................       17,574       21,174       17,574  ...........       20,674
INTELLIGENCE COMM EQUIP........................        5,697        8,697        5,697  ...........        8,697
AIR TRAFFIC CTRL/LAND SYS (ATCALS).............  ...........  ...........       16,000  ...........  ...........
NATIONAL AIRSPACE SYSTEM.......................       45,308       45,308       45,308  ...........       13,400
THEATER AIR CONTROL SYS IMPROVEMENT............       30,002       32,502       30,002  ...........       35,002
TAC SIGINT SUPPORT.............................        1,883  ...........        1,883  ...........  ...........
AUTOMATIC DATA PROCESSING EQUIP................       33,190       33,190       33,190  ...........       36,190
AF GLOBAL COMMAND & CONTROL SYS................        5,819        4,519        5,819  ...........        4,519
COMBAT TRAINING RANGES.........................       13,194       12,694       13,194  ...........       22,694
C3 COUNTERMEASURES.............................       10,228       10,228       17,728  ...........       17,728
BASE LEVEL DATA AUTO PROGRAM...................       28,876       28,876       27,000  ...........       27,000
BASE INFORMATION INFRASTRUCTURE................      159,383      180,383      158,383  ...........      159,383
AF SATELLITE CONTROL NETWORK SPACE.............       26,007       23,007       26,007  ...........       23,007
TACTICAL C-E EQUIPMENT.........................       31,064       27,364       31,064  ...........       27,364
COMBAT SURVIVOR/EVADER LOCATOR RADIO...........       13,757  ...........       13,757  ...........        3,000
CAP COM & ELECT................................          378          450          378  ...........          450
NIGHT VISION GOGGLES...........................        8,118        6,118        8,118  ...........        6,118
MECHANIZED MATERIAL HANDLING EQUIP.............       14,516       14,516       14,516  ...........       18,516
BASE PROCURED EQUIPMENT........................        5,644       10,244        5,644  ...........        7,744
AIR BASE OPERABILITY...........................        5,363        5,363       12,363  ...........        5,363
PRODUCTIVITY INVESTMENTS.......................       12,304       17,304       12,304  ...........       12,304
INTELLIGENCE PRODUCTION ACTIVITY...............       72,605       71,605       72,605  ...........       72,605
COMMON IMAGERY GRD/SURFACE SYS.................  ...........        5,681  ...........  ...........        5,681
DARP RC135.....................................       12,656       16,456       12,656  ...........       16,456
SELECTED ACTIVITIES............................    5,322,644    5,405,644    5,256,344  ...........    5,354,744
SPECIAL UPDATE PROGRAM.........................      179,813      149,813      179,813  ...........      169,813
FIRST DESTINATION TRANSPORTATION...............       16,442       16,442       16,000  ...........       16,000
SPARES AND REPAIR PARTS........................       52,712       52,712       52,712  ...........       49,012
VEHICLE LEASES.................................  ...........  ...........        4,887  ...........        2,400
VEHICLE PURCHASE...............................  ...........  ...........  ...........  ...........       12,200
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -4,802  ...........  ...........       -4,802
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
THEATER AIR CONTROL SYS IMPROVEMENT.............          30,002          32,502          30,002          35,002
    Mobile Radar Approach Control (RAPCON) for
     Air National Guard.........................               0           8,000               0           8,000
    Contract savings............................               0          -5,500               0          -3,000
AUTOMATIC DATA PROCESSING EQUIP.................          33,190          33,190          33,190          36,190
    Battle lab collaborative network............               0           3,000               0           3,000
    Commercially available equipment............               0          -3,000               0          -3,000
    Spares Information System (transfer)........               0               0               0           3,000
COMBAT TRAINING RANGES..........................          13,194          12,694          13,194          22,694
    Rangeless training..........................               0           5,000               0          15,000
    JTCTS.......................................               0          -5,500               0          -5,500
BASE INFORMATION INFRASTRUCTURE.................         159,383         180,383         158,383         159,383
    Base information protection improvements....               0          20,000               0               0
    Office of Security and Investigations
     computer crime investigations..............               0           1,000               0           1,000
    Program reduction...........................               0               0          -1,000          -1,000
MECHANIZED MATERIAL HANDLING EQUIP..............          14,516          14,516          14,516          18,516
    Supply Asset Tracking System (transfer).....               0               0               0           4,000
BASE PROCURED EQUIPMENT.........................           5,644          10,244           5,644           7,744
    Ultimate Building Machines for Air National
     Guard......................................               0           1,800               0             800
    Ultimate Building Machines for Air Force....               0             800               0             300
    Automated Integrated Surveying Equipment....               0           2,000               0           1,000
----------------------------------------------------------------------------------------------------------------

                       Procurement, Defense-Wide

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           PROCUREMENT, DEFENSE-WIDE
MAJOR EQUIPMENT, OSD...........................      100,245      137,245      100,245  ...........      120,245
DARP...........................................       77,435        3,419       77,435  ...........        3,419
DEFENSE AIRBORNE RECONNAISSANCE PROGRAM........       11,988        8,569       11,988  ...........       11,988
DEFENSE SUPPORT ACTIVITIES.....................       68,682       68,682       88,682  ...........       68,682
AUTOMATIC DOCUMENT CONVERSION SYSTEM...........  ...........       25,000  ...........  ...........       20,000
MAJOR EQUIPMENT, DSPO..........................       16,214  ...........       16,214  ...........        3,913
PATRIOT PAC-3..................................      343,235      303,235      192,735           40      248,235
C-130 MODIFICATIONS............................       58,359       58,359       63,359  ...........       60,859
SOF ORDNANCE ACQUISITION.......................       15,707       15,707       21,707  ...........       18,707
MARITIME EQUIPMENT MODIFICATIONS...............       26,012       22,012       26,012  ...........       22,012
CLASSIFIED PROGRAMS............................       73,991       79,084       84,091  ...........       84,091
CONSEQUENCE MANAGEMENT.........................  ...........       15,000  ...........  ...........  ...........
CLASSIFIED PROGRAMS............................      349,694      407,032      349,694  ...........      370,594
MILITARY PERSONNEL INFORMATION SYSTEM..........  ...........       12,000  ...........  ...........       12,000
----------------------------------------------------------------------------------------------------------------

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
MAJOR EQUIPMENT, OSD............................         100,245         137,245         100,245         120,245
    Mentor-Protege Program......................               0          10,000               0          10,000
    High Performance Computing Hardware.........               0          27,000               0          10,000
MAJOR EQUIPMENT, DSPO...........................          16,214               0          16,214           3,913
    Program reduction...........................               0          -7,826               0          -3,913
    IBS transfer................................               0          -8,388               0          -8,388
PATRIOT PAC-3...................................         343,235         303,235         192,735         248,235
    Reduction due to schedule slip..............               0               0        -150,500         -55,000
    Transfer....................................               0         -40,000               0         -40,000
CLASSIFIED PROGRAMS.............................          73,991          79,084          84,091          84,091
    Program increase............................               0           5,093               0               0
    Program increase............................               0               0          10,100          10,100
----------------------------------------------------------------------------------------------------------------

                 Patriot Advanced Capability 3 (PAC-3)

      The conferees agree to provide $248,235,000, a decrease 
of $95,000,000 to the budget request for Patriot PAC-3 
procurement, based on delays in the test program and in 
execution of the fiscal year (FY) 1998 Low Rate Initial 
Procurement (LRIP). The conferees direct that the FY 1998 PAC-3 
LRIP funds may not be obligated until the PAC-3 missile 
successfully completes two intercept flight tests.

                  National Guard and Reserve Equipment

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
       NATIONAL GUARD & RESERVE EQUIPMENT
RESERVE EQUIPMENT:
    ARMY RESERVE: MISCELLANEOUS EQUIPMENT......  ...........       20,000       45,000  ...........       20,000
    NAVY RESERVE:
        MISCELLANEOUS EQUIPMENT................  ...........       20,000       25,000  ...........       20,000
        C-9 REPLACEMENT........................  ...........  ...........       40,000  ...........       40,000
    MARINE CORPS RESERVE: MISCELLANEOUS
     EQUIPMENT.................................  ...........       20,000       30,000  ...........       20,000
    AIR FORCE RESERVE: MISCELLANEOUS EQUIPMENT.  ...........       20,000       35,000  ...........       20,000
NATIONAL GUARD EQUIPMENT:
    ARMY NATIONAL GUARD: MISCELLANEOUS
     EQUIPMENT.................................  ...........       20,000       72,000  ...........       20,000
    AIR NATIONAL GUARD:
        MISCELLANEOUS EQUIPMENT................  ...........       20,000       40,000  ...........       20,000
        C-130J.................................  ...........  ...........      128,000            3      192,000
        EC-130J................................  ...........  ...........       85,000  ...........  ...........
----------------------------------------------------------------------------------------------------------------

                        miscellaneous equipment

      The conferees agree that each of the Chiefs of the 
Reserve and National Guard components should exercise control 
of modernization funds provided in this account including 
aircraft and aircraft modernization. The conferees further 
agree that separate submissions of a detailed assessment of its 
modernization priorities by the component commanders is 
required to be submitted to the defense committees. The 
conferees expect the component commanders to give priority 
consideration to the following items: Reconfigurable Mission 
Simulator, Mobile Backscatter Radar, F-16 ALR-56M Radar Warning 
Receivers, P-3C Reserve Modernization, AN/PVS-7 and AN/PVS-14 
Night Vision Devices, C-17 Simulator, Early Production and 
Fielding Program, F-15 Night Vision Imaging Systems, Frequency 
Hopping Multiplexer, Full Mission Trainer Upgrades, MIDS System 
Integration, D7 Tractor Bulldozer PIP, D7 Tractor Bulldozer, 
IREMBASS, Sandbagger, CH-47 Internal Crashworthy Fuel Cells, 
A20DS, Counterdrug Sensor Upgrades, Armored Combat Earth 
Movers, ATARS MAEO Sensors, Bradley A20D, C-130 Modernization, 
C-130J Flight Simulators, C-22 Replacement, HH-60 Combat Rescue 
Upgrades, D-7 Bulldozers and Product Improvements, Engagement 
Skills Trainers, F-15 Fighter Data Link, F-16 Situation 
Awareness Data Link, F-16 Targeting Pods, F-16 Unit Training 
Devices, F-16 Midlife Update, Heavy Tactical Vehicles, Field 
Artillery Ammunition Support Vehicles, LITENING Targeting pod 
system, M88 A2, Material Handling Equipment Product 
Improvements, Mobile Electronic Warfare Support Systems, 
Simulators, SINCGARS radios, Onboard Oxygen Generating System, 
Outfitting of the 220th ADA Patriot Battalion, Paladin, Theater 
Aircommunication Equipment, UC-35A, UH-1 Modernization, 
Vibration Management Enhancement Program, UH-60Q Upgrades, WC-
130J Modifications, Masters Cranes, F-16 Intermediate Avionics 
Shop, Medium Truck Extended Service Program, MJU-52 IR 
Expendable Countermeasures and Trucks and Support Equipment for 
Transportation Companies.

                  national guard and reserve aircraft

      The conferees agree to provide $232,000,000 specifically 
for the acquisition and modernization of the following aircraft 
to support Reserve and National Guard missions:

C-9 replacement for the Navy Reserve....................     $40,000,000
C-130J aircraft for the Air National Guard (3)..........     192,000,000

          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

      The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
                       RECAPITULATION
RDTE, ARMY..................................................    4,780,545    4,967,446    4,891,640    5,031,788
RDTE, NAVY..................................................    8,108,923    8,297,986    8,215,519    8,636,649
RDTE, AIR FORCE.............................................   13,598,093   13,577,441   13,693,153   13,758,811
RDTE, DEFENSE-WIDE..........................................    9,314,665    8,776,318    9,032,908    9,036,551
DEVELOPMENTAL TEST AND EVALUATION...........................      251,106      263,606      249,106      258,606
OPERATIONAL TEST AND EVALUATION.............................       25,245       35,245       25,245       34,245
                                                             ---------------------------------------------------
      GRAND TOTAL, RDTE.....................................   36,078,577   35,918,042   36,107,571   36,756,650
----------------------------------------------------------------------------------------------------------------

            Research, Development, Test and Evaluation, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
          RESEARCH, DEVELOPMENT, TEST & EVAL, ARMY
IN-HOUSE LABORATORY INDEPENDENT RESEARCH....................       14,902       13,678       14,902       13,678
DEFENSE RESEARCH SCIENCES...................................      137,399      121,827      129,463      126,463
TRACTOR ROSE................................................        6,000        6,000  ...........  ...........
MATERIALS TECHNOLOGY........................................       10,137       10,137       15,137       13,137
SENSORS AND ELECTRONIC SURVIVABILITY........................       18,738       18,738       16,895       16,895
AVIATION TECHNOLOGY.........................................       29,746       29,746       25,160       25,160
MISSILE TECHNOLOGY..........................................       25,180       24,880       30,680       30,380
MODELING AND SIMULATION TECHNOLOGY..........................       27,981       22,531       24,153       21,653
COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY....................       40,107       30,107       44,362       39,562
BALLISTICS TECHNOLOGY.......................................       31,115       31,115       27,475       27,475
WEAPONS AND MUNITIONS TECHNOLOGY............................       29,489       25,689       31,489       29,189
ELECTRONICS AND ELECTRONIC DEVICES..........................       22,329       29,829       25,479       25,479
HUMAN FACTORS ENGINEERING TECHNOLOGY........................       13,369       21,169       18,169       16,619
ENVIRONMENTAL QUALITY TECHNOLOGY............................       13,842       42,342       51,742       64,842
MILITARY ENGINEERING TECHNOLOGY.............................       37,488       42,488       42,188       52,688
MEDICAL TECHNOLOGY..........................................       67,255      155,740       70,255      139,255
DUAL USE APPLICATIONS PROGRAM...............................       20,000       20,000       10,000       10,000
WARFIGHTER ADVANCED TECHNOLOGY..............................       32,969       27,369       32,969       30,669
MEDICAL ADVANCED TECHNOLOGY.................................       11.012      179,012       30,012      230,862
AVIATION ADVANCED TECHNOLOGY................................       30,048       40,048       51,048       45,048
WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY...................       24,555       27,055       29,055       25,055
COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHNOLOGY...........       54,435       54,435       49,535       61,735
COMMAND, CONTROL, COMMUNICATIONS ADVANCED TECHNOLOGY........       20,109       28,109       20,109       24,109
MISSILE AND ROCKET ADVANCED TECHNOLOGY......................       86,096       47,896       92,096       71,896
LANDMINE WARFARE AND BARRIER ADVANCED TECHNOLOGY............       21,944       24,944       25,844       23,944
JOINT SERVICE SMALL ARMS PROGRAM............................        5,173       10,673        8,673        9,673
LINE-OF-SIGHT TECHNOLOGY DEMONSTRATION......................       20,099  ...........       20,099       12,000
NIGHT VISION ADVANCED TECHNOLOGY............................       23,960       23,960       26,460       27,460
MILITARY ENGINEERING ADVANCED TECHNOLOGY....................       13,564       13,564       16,264       15,564
TACTICAL TOWED ARRAY SONAR (H)..............................       54,419  ...........       54,419  ...........
JOINT TACTICAL RADIO........................................       15,600       15,600       15,600       10,100
ARMY MISSILE DEFENSE SYSTEMS INTEGRATION....................       12,240       21,240       38,240       37,740
ARMAMENT ENHANCEMENT INITIATIVE.............................       26,526       46,526       28,526       36,026
ARMY DATA DISTRIBUTION SYSTEM...............................       17,281        6,281        6,300       15,281
NATO RESEARCH AND DEVELOPMENT...............................       11,161  ...........        9,161        4,161
AVIATION--ADV DEV...........................................        7,487       12,487       11,487       11,487
LOGISTICS AND ENGINEER EQUIPMENT--ADV DEV...................       17,478       17,478       19,978       18,978
ARTILLERY SYSTEMS--DEM/VAL..................................      313,166      313,166      313,166      317,166
AIRCRAFT AVIONICS...........................................        7,878        7,878       17,878       14,878
COMANCHE....................................................      367,823      391,823      349,208      367,823
EW DEVELOPMENT..............................................       85,989       90,989       90,589       86,989
ALL SOURCE ANALYSIS SYSTEM..................................       28,081       36,081       28,081       34,081
FOLLOW-ON TO TOW............................................       48,106       48,106        8,106  ...........
FAMILY OF HEAVY TACTICAL VEHICLES...........................  ...........        3,000        1,250        8,300
ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....................       63,069       76,069       66,569       71,069
COMBAT FEEDING, CLOTHING, AND EQUIPMENT.....................       62,218       82,218       53,568       68,218
TERRAIN INFORMATION--ENG DEV................................        2,999        2,999        2,999        6,229
AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE...............        6,476        6,476        6,476       11,606
AUTOMATIC TEST EQUIPMENT DEVELOPMENT........................        7,030       12,030        7,030       10,030
TACTICAL EXPLOITATION OF NATIONAL CAPABILITIES..............       44,674       40,074       44,674       44,674
BRILLIANT ANTI-ARMOR SUBMUNITION (BAT)......................      134,858      128,858      134,858      128,858
AVIATION--ENG DEV...........................................        6,599       12,599       11,599       11,599
WEAPONS AND MUNITIONS--ENG DEV..............................       37,725       40,725       35,725       35,725
LANDMINE WARFARE/BARRIER--ENG DEV...........................       46,905       41,405       46,905       52,905
SENSE AND DESTROY ARMAMENT MISSILE--ENG DEV.................       20,813  ...........       33,813       31,813
RADAR DEVELOPMENT...........................................        2,786        2,786        6,786        6,786
FIREFINDER..................................................       19,822       19,822       20,722       20,722
DUAP COMMERCIAL OPERATIONS AND SUPPORT SAVINGS..............       33,600       19,700       23,600       21,600
ARTILLERY SYSTEMS--EMD......................................          100        2,600          100        1,100
THREAT SIMULATOR DEVELOPMENT................................       11,935       11,935       13,935       12,935
MAJOR T&E INVESTMENT........................................       40,284       40,284       32,142       37,284
ARMY KWAJALEIN ATOLL........................................      142,710      142,710      122,710      134,710
CONCEPTS EXPERIMENTATION PROGRAM............................       17,441       17,441       10,541       10,541
ARMY TECHNICAL TEST INSTRUMENTATION AND TARGETS.............       33,439       43,439       40,439       43,939
SURVIVABILITY/LETHALITY ANALYSIS............................       30,498       36,498       34,498       34,498
DOD HIGH ENERGY LASER TEST FACILITY.........................       15,022       28,022       23,022       24,022
DISTRIB/IMAGERY COMMON-GRD SYSTEMS..........................  ...........        8,912  ...........  ...........
MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY.........        8,497       11,497       12,497       10,497
POLLUTION PREVENTION........................................        8,694        8,694       10,694       10,694
ENVIRONMENTAL COMPLIANCE....................................       44,116       47,116       51,116       49,116
MAINTENANCE AND REPAIR (RPM)--RDT&E.........................       49,233       49,233       80,233       80,233
MANAGEMENT HEADQUARTERS (RESEARCH AND DEVELOPMENT)..........        4,683        4,683       22,683       22,683
MLRS PRODUCT IMPROVEMENT PROGRAM............................       20,244       32,744       20,244       25,244
AEROSTAT JOINT PROJECT OFFICE...............................      103,937  ...........       45,000       15,000
AIRBORNE RECONNAISSANCE SYSTEMS.............................  ...........        7,500  ...........  ...........
ADV FIELD ARTILLERY TACTICAL DATA SYSTEM....................       35,111       35,111       40,381       34,881
COMBAT VEHICLE IMPROVEMENT PROGRAMS.........................       94,756      101,856      108,256      104,756
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............        2,948       11,948        6,948        6,948
DIGITIZATION................................................       45,007       45,007       48,007       47,007
FORCE TWENTY-ONE (XXI), WARFIGHTING RAPID ACQUISITION.......       99,528       64,528       69,528       27,168
TACTICAL SIMULATOR INTERFACE UNIT...........................  ...........  ...........  ...........        1,500
MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT PROGRAM.............       11,252       19,252       11,252       15,252
SPECIAL ARMY PROGRAM........................................        6,537        7,537       12,037        9,787
INFORMATION SYSTEMS SECURITY PROGRAM........................        7,433       12,433        7,433       11,433
DIGITAL INFORMATION TECHNOLOGY TEST BED.....................  ...........  ...........        6,600        3,500
TACTICAL UNMANNED AERIAL VEHICLES...........................       75,636       53,636       97,828       53,636
ADVANCED TECHNOLOGY.........................................  ...........  ...........        7,500        7,500
COMMON IMAGERY GROUND/SURFACE SYS...........................  ...........  ...........        8,912        8,912
END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.................       30,511       59,711       37,861       52,861
NATO JOINT STARS............................................        6,405        6,405  ...........        3,000
ADVISORY AND ASSISTANCE SERVICES............................  ...........      -20,000  ...........      -20,000
CONSEQUENCE MANAGEMENT......................................  ...........        15,00  ...........  ...........
CIVILIAN PERSONNEL UNDEREXECUTION...........................  ...........  ...........  ...........       -6,400
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES...................................      137,399      121,827      129,463      126,463
    Program Growth..........................................            0      -15,572            0       -3,000
    Nutrition research......................................            0      [3,700]            0      [3,700]
    Scientific problems with military applications growth...            0            0       -7,936       -7,936
UNIVERSITY AND INDUSTRY RESEARCH CENTERS (Note: The
 conferees direct that the reduction is to be allocated on a
 fair share basis)..........................................       48,459       45,138       45,138       45,138
AVIATION TECHNOLOGY.........................................       29,746       29,746       25,160       25,160
    Air mobility concept....................................            0            0       -1,923       -1,923
    Precision kill and nonlethal weapon integration and
     manned/unmanned system technology......................            0            0       -2,663       -2,663
MISSILE TECHNOLOGY..........................................       25,180       24,880       30,680       30,380
    MLRS Smart Tactical Rocket..............................            0         -300            0         -300
    Acoustic detection......................................            0            0        1,500        1,500
    Scramjet missile technology.............................            0            0        3,000        2,000
    Counteractive protection................................            0            0        5,000        2,000
    Compact kinetic energy missile..........................            0            0       -4,000            0
    Solid state dye lasers..................................            0            0      [3,000]      [2,000]
MODELING AND SIMULATION TECHNOLOGY..........................       27,981       22,531       24,153       21,653
    AAN applied research project............................            0       -5,450       -4,450       -5,450
    Standards development and testing.......................            0            0       -1,600       -1,600
    Advanced concepts and technology........................            0            0       -1,778       -1,778
    Photonics research......................................            0            0        4,000        2,500
COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY....................       40,107       30,107       44,362       39,562
    Next generation light truck.............................            0       -5,000            0       -2,500
    Future infantry and combat system.......................            0       -5,000       -5,245       -5,245
    Alternative vehicle propulsion system...................            0            0        2,500        1,700
    Robotic and manned ground systems enhancements..........            0            0        4,500        3,000
    Commercial automotive technology........................            0            0        2,500        2,500
BALLISTICS TECHNOLOGY.......................................       31,115       31,115       27,475       27,475
    Electric gun technology (Note: The conferees direct that
     the first priority for the available funding is ETC
     technology)............................................            0            0       -3,640       -3,640
WEAPONS AND MUNITIONS TECHNOLOGY............................       29,489       25,689       31,489       29,189
    SADARM sensor improvements..............................            0       -3,800            0       -1,300
    Future direct support weapon system (Note: The Army
     shall use the additional funding to produce a 5,000
     pound version of the howitzer using the soft-recoil
     technology)............................................            0            0        2,000        1,000
ELECTRONICS AND ELECTRONIC DEVICES..........................       22,329       29,829       25,479       25,479
    MEMS--deep silicon etching process technology (Note:
     MEMS funds transferred to DARPA).......................            0        7,500            0            0
    Improved high rate alkaline cell........................            0            0          700          700
    Low cost reuseable alkaline maganese-zinc...............            0            0          900          900
    Rechargeable coin cells.................................            0            0          650          650
    Coin cell zinc air......................................            0            0          900          900
HUMAN FACTORS ENGINEERING TECHNOLOGY........................       13,369       21,169       18,169       16,619
    Medical Teams...........................................            0        4,800        4,800        3,000
    Life Support Trauma and Transport.......................            0        3,000            0            0
    Pharmacokinetics Research...............................            0            0            0          250
ENVIRONMENTAL QUALITY TECHNOLOGY............................       13,842       42,342       51,742       64,842
    Plasma Energy Pyrolysis System..........................            0        3,000        5,000        3,000
    Sustainable Green Manufacturing initiative..............            0        5,000            0        3,000
    Computer based land management..........................            0        3,000            0        2,500
    ARO--chemical and hazardous material disposal...........            0        2,000            0        1,500
    Commercialization of Tech. to Lower Defense Costs
     Initiative.............................................            0        7,500            0        6,000
    Electronic Equipment Demanufacturing....................            0        8,000            0        6,000
    MP \4\ Initiative (NDCEE)...............................            0            0       20,000       15,000
    Lightweight spectrophotometer system....................            0        [500]            0        [500]
    Small Business Development Center.......................            0            0        5,400        4,000
    Agriculturally based bioremediation.....................            0            0        4,000        4,000
    Radford environmental development and management system.            0            0        3,500        2,000
    Western Environmental Technology Office.................            0            0      [5,000]        4,000
MILITARY ENGINEERING TECHNOLOGY.............................       37,488       42,488       42,188       52,688
    Construction Engineering Research Labs--fuel cells......            0        5,000            0        3,000
    Cold regions research and development...................            0            0        1,700        1,200
    University partnering for operational support...........            0            0        3,000        3,000
    GEOSAR (Note: transferred from DARPA)...................            0            0            0        8,000
MEDICAL TECHNOLOGY..........................................       67,255      155,740       70,255      139,255
    Disaster Relief and Emergency Medical Services..........            0        9,985            0       10,000
    LSTAT...................................................            0            0        3,000        2,000
    Advanced Cancer Detection...............................            0        3,500            0        3,500
    Diagnostic and surgical breast imaging..................            0        3,000            0        2,000
    Minimally invasive......................................            0       15,000            0       11,500
    Musculoskeletal injuries................................            0        3,000            0        2,000
    Neurofibromatosis.......................................            0       15,000            0       11,500
    Neurotoxin..............................................            0       25,000            0       20,000
    Osteoporosis............................................            0        5,000            0        2,500
    Pain....................................................            0        1,000            0      [1,000]
    Portable cardiopulmonary bypass pump and oxygenator.....            0        3,000            0        2,000
    Technology Roadmap......................................            0        2,000            0        2,000
    Teleradiology...........................................            0        3,000            0        3,000
MEDICAL ADVANCED TECHNOLOGY.................................       11,012      179,012       30,012      230,862
    Disaster Relief and Emergency Medical Services..........            0            0       10,000            0
    Assistive Technology....................................            0        8,000            0        6,000
    Diabetes................................................            0        9,000            0        4,500
    Digital x-ray...........................................            0        5,000            0        4,000
    National Medical Testbed................................            0       11,000            0        8,000
    Nutrition Research......................................            0            0        2,000            0
    Breast Cancer Peer Review...............................            0      135,000            0      135,000
    Intravenous membrane oxygenator.........................            0            0        1,000          850
    Prostate [Note: The conferees provide $50,000,000 for
     peer reviewed prostate research.]......................            0            0            0       50,000
    Prostate--Walter Reed [Note: The conferees provide
     $7,500,000 to continue the intramural research effort
     conducted by the Walter Reed Center for Prostate
     Disease Research in the area of prostate cancer
     detection and treatment.]..............................            0            0        2,000        7,500
    Volume Angiocat.........................................            0            0        4,000        4,000
WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY...................       24,555       27,055       29,055       25,055
    MLRS Smart Tactical Rocket..............................            0       -5,000            0       -5,000
    ER fluid recoil system..................................            0        5,000            0        2,500
    Precision guided mortar munition........................            0            0        4,500        3,000
COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHNOLOGY...........       54,435       54,435       49,535       61,735
    Aluminum metal matrix...................................            0            0        6,500        4,000
    Heavy truck propulsion systems..........................            0            0        3,600        2,500
    Diesel engine testing...................................            0            0        2,000          800
    Program reduction.......................................            0            0      -17,000            0
MISSILE AND ROCKET ADVANCED TECHNOLOGY......................       86,096       47,896       92,096       71,896
    EFOG....................................................            0      -35,700            0      -15,700
    MLRS Smart Tactical Rocket..............................            0       -2,500            0       -2,500
    Future missile technology integration...................            0            0        6,000        4,000
JOINT SERVICE SMALL ARMS PROGRAM............................        5,173       10,673        8,673        9,673
    Objective crew served weapon............................            0        3,500        3,500        3,500
    Objective individual combat weapon......................            0        2,000            0        1,000
NIGHT VISION ADVANCED TECHNOLOGY............................       23,960       23,960       26,460       27,460
    Millimeter wave technology (Note: funds are to be
     allocated for low cost millimeter wave technology
     ($500,000) and passive millimeter wave camera
     technology ($3,000,000)................................            0            0        2,500        3,500
JOINT TACTICAL RADIO........................................       15,600       15,600       15,600       10,100
    General Provision.......................................            0            0    [-10,981]       -5,500
ARMY MISSILE DEFENSE SYSTEMS INTEGRATION....................       12,240       21,240       38,240       37,740
    SSDC Battlelab..........................................            0        9,000       11,000        8,000
    Tactical High Energy Laser..............................            0            0       15,000       12,500
    Range upgrades to support upper stage flight experiments
     (Note: Senate provided funds under 0603401F)...........            0            0            0        5,000
ARMAMENT ENHANCEMENT INITIATIVE.............................       26,526       46,526       28,526       36,026
    Tank Extended Range Munition--Kinetic Energy............            0       20,000       10,000       17,500
    M829E3 development......................................            0            0       -8,000       -8,000
ARMY DATA DISTRIBUTION SYSTEM...............................       17,281        6,281        6,300       15,281
    Near Term Digital Tactical Radio........................            0      -11,000            0       -2,000
    General Provision.......................................            0            0     [10,981]            0
ARTILLERY SYSTEMS--DEM/VAL..................................      313,166      313,166      313,166      317,166
    Alternative transmission................................            0            0            0        4,000
EW DEVELOPMENT..............................................       85,989       90,989       90,589       86,989
    ATIRCM/CMWS integration.................................            0        5,000        8,600        5,000
    Ground base common sensor...............................            0            0       -4,000       -4,000
FAMILY OF HEAVY TACTICAL VEHICLES...........................            0        3,000        1,250        8,300
    Trailer development.....................................            0        3,000            0        2,500
    HETS highway use trailer................................            0            0        1,250        1,000
    Passenger Safety System for heavy tactical vehicles.....            0            0      [1,300]        1,000
    Forward repair system heavy (Note: Transferred from
     0203761A)..............................................            0            0            0        3,800
ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....................       63,069       76,069       66,569       71,069
    Grizzly--prototype (Note: Funds are to procure one
     Grizzly simulator).....................................            0       13,000            0        6,000
    DSESTS..................................................            0            0        3,500        2,000
COMBAT FEEDING, CLOTHING, AND EQUIPMENT.....................       62,218       82,218       53,568       68,218
    Transfer from OP, A.....................................            0       20,000            0       10,000
    Contract modification and engineering change proposals..            0            0       -4,000       -4,000
    Landwarrior product improvement.........................            0            0       -4,650            0
TERRAIN INFORMATION--ENG DEV................................        2,999        2,999        2,999        6,229
    Digital topographic support system (Note: Transferred
     from 0203761A).........................................            0            0            0        3,230
AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE...............        6,476        6,476        6,476       11,606
    Air and missile defense planning (Note: Transferred from
     0203761A)..............................................            0            0            0        5,130
AUTOMATIC TEST EQUIPMENT DEVELOPMENT........................        7,030       12,030        7,030       10,030
    IFTE (Note: Funds are only for IFTE off-system, pre-
     planned product improvements and related test program
     set development).......................................            0        5,000            0        3,000
WEAPONS AND MUNITIONS--ENG DEV..............................       37,725       40,725       35,725       35,725
    Trajectory correctable munition (Note: Transferred to
     USMC)..................................................            0        3,000            0            0
    Mortar fire control system contract savings.............            0            0       -2,000       -2,000
LANDMINE WARFARE/BARRIER--ENG DEV...........................       46,905       41,405       46,905       52,905
    Remote anti-armor mine system...........................            0       -5,500            0            0
    NSD-A program delays....................................            0            0      -12,000            0
    Landmine alternatives...................................            0            0       12,500            0
    NSD-A and mixed alternatives studies....................            0            0            0        6,000
MAJOR T&E INVESTMENT........................................       40,284       40,284       32,142       37,284
    Program reduction.......................................            0            0       -1,000            0
    USAKA (Kwajalein Atoll).................................            0            0       -7,142       -3,000
ARMY TECHNICAL TEST INSTRUMENTATION AND TARGETS.............       33,439       43,439       40,439       43,939
    Testing instrumentation and targets (WSMR)..............            0       10,000        7,000       10,000
    Phase III SBIR Characterization and Quantification of
     missile debris hazard to aircraft--WSMR................            0            0            0          500
DOD HIGH ENERGY LASER TEST FACILITY.........................       15,022       28,022       23,022       24,022
    Solid state laser.......................................            0        8,000        8,000        8,000
    Hybrid HMMWV............................................            0        5,000            0        1,000
MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY.........        8,497       11,497       12,497       10,497
    Environmentally sound technologies for demilitarization
     of ammunition..........................................            0        3,000            0            0
    Lexington Blue Grass Army Depot Blast Chamber...........            0            0        2,000        1,000
    Anniston Army Depot Blast Chamber.......................            0            0        2,000        1,000
ENVIRONMENTAL COMPLIANCE....................................       44,116       47,116       51,116       49,116
    Climate change fuel cell................................            0            0        5,000        3,000
    Low emissions gas boiler demo...........................            0        3,000        2,000        2,000
MAINTENANCE AND REPAIR (RPM)--RDT&E.........................       49,233       49,233       80,233       80,233
    White Sands Missile Range...............................            0            0       20,800       20,800
    Aberdeen Proving Ground (PG)/Dugway PG/Yuma PG..........            0            0        9,200        9,200
    Cold Regions Research Lab...............................            0            0        1,000        1,000
MANAGEMENT HEADQUARTERS (R&D)...............................        4,683        4,683       22,683       22,683
    Akamai (Note: Of the additional funds $4,000,000 is only
     for Hyperspectral diagonistic imaging and $2,000,000 is
     only for remote access to medical specialists program).            0            0       18,000       18,000
MLRS PRODUCT IMPROVEMENT PROGRAM............................       20,244       32,744       20,244       25,244
    Commercial component usage and joint service
     communications.........................................            0        8,300            0            0
    HIMARS..................................................            0        6,000            0        5,000
    Improved launcher mechanical system.....................            0        3,200            0            0
    Guided MLRS MOU.........................................            0       -5,000            0            0
ADV FIELD ARTILLERY TACTICAL DATA SYSTEM....................       35,111       35,111       40,439       34,881
    Airspace deconfliction and technical fire support
     (AFATDS) enhancement...................................            0            0       12,500        7,000
    AFATDS 2000 software development........................            0            0       -7,230       -7,230
COMBAT VEHICLE IMPROVEMENT PROGRAMS.........................       94,756      101,856      108,256      104,756
    M-1 Flat Panel Dispays (FED)............................            0        7,100        7,000        7,000
    DSESTS..................................................            0            0        6,500        3,000
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............        2,948       11,948        6,948        6,948
    Fadec...................................................            0        5,000        2,000        2,000
    Variable Vane Pump (Note: Funding is only for helicopter
     secondary power unit application)......................            0        4,000        2,000        2,000
DIGITIZATION................................................       45,007       45,007       48,007       47,007
    Digitization research at Ft. Hood.......................            0            0        3,000        2,000
    Digital intelligence situation mapboard.................            0            0      [2,000]      [2,000]
FORCE TWENTY-ONE (XXI), WARFIGHTING RAPID ACQUISITION.......       99,528       64,528       69,528       27,168
    Program reduction.......................................            0      -35,000      -30,000      -35,000
    Air and missile defense planning (Note: Transferred to
     0604741A)..............................................            0            0            0       -5,130
    Analysis control team (Note: Transferred to OPA P-67)...            0            0            0       -6,750
    Grenadier Brat (Note: Transferred to OPA P-75)..........            0            0            0       -4,400
    High speed multiplexer (Note: Transferred to OPA P-44)..            0            0            0       -2,750
    Digital topographic support system (Note: Transferred to
     0604716A)..............................................            0            0            0       -3,230
    Tactical simulation (Note: Transferred to new program
     element)...............................................            0            0            0       -1,500
    Forward repair system (Note: Transferred to 0604622A)...            0            0            0       -3,800
    CCTT (Note: The conferees deny funding for this
     initiative)............................................            0            0            0       -7,300
    Global combat support system (Note: The conferees deny
     funding for this initiative)...........................            0            0            0       -2,500
TACTICAL SIMULATION INTERFACE UNIT (Note: Transferred from
 0203761A)..................................................            0            0            0        1,500
END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.................       30,511       59,711       37,861       52,861
    Munitions manufacturing technology......................            0       13,200        5,000       10,000
    Instrumented factory for gears..........................            0        4,000        4,000        4,000
    Totally integrated munitions enterprise.................            0        9,000            0        7,000
    Composite armor vehicle technology......................            0        1,000            0          500
    Center for optics manufacturing.........................            0        2,000            0        1,000
    Undefined projects......................................            0            0       -1,650       -1,650
    Electronic circuit board manufacturing development
     center.................................................            0            0      [2,000]        1,500
ALTERNATIVE VEHICLE PROPULSION TECHNOLOGIES.................            0     [10,000]            0            0
CIVILIAN PERSONNEL UNDER EXECUTION..........................            0            0            0       -6,400
----------------------------------------------------------------------------------------------------------------

                     aerostat joint project office

      The conferees have provided $15,000,000 for the Aerostat 
program to participate in joint demonstrations of surveillance 
technologies and to continue development efforts. Within the 
available funds, the conferees urge the Defense Department to 
investigate issues associated with building and demonstrating a 
deployable mobile large aerostat system platform.

                   landmine warfare/barrier--eng dev

      The conferees understand that the Department has launched 
a search for alternatives to anti-personnel landmines with the 
goal of fielding such alternatives as soon as practicable. The 
conferees support this effort relating to the identification, 
adaptation, modification, research, and development of existing 
and new technologies and concepts that are militarily 
equivalent, cost effective and safe. These efforts should 
result in: (1) a combat capability that is equivalent to the 
combat capability provided by non-self destructing anti-
personnel landmines; (2) a combat capability that is equivalent 
to the combat capability provided by anti-personnel (AP) 
submunitions used in mixed anti-tank mine systems; or (3) a 
combat capability to replace the entire mixed munition.
      The conference recommendation provides a total of 
$23,200,000 as follows: $17,200,000 ($12,500,000 in RDT&E, Army 
and $4,700,000 in RDT&E, Defense-Wide) for the Army's current 
Non-Self Destruct Alternatives (NSD-A); $2,000,000 for studies 
of NSD-A designs, beyond man-in-the-loop technology; and 
$4,000,000 to research, identify and adapt technology and 
concepts that could replace capabilities now provided by mixed 
system or the AP submunitions in mixed systems. The Secretary 
of Defense shall submit a report to the congressional defense 
committees not later than April 1, 2000 and April 1, 2001, 
describing progress made in identifying and fielding such 
alternative, and future plans in this effort.
      The conferees direct that the Secretary of Defense obtain 
the recommendations of two appropriate scientific organizations 
regarding concepts that would provide comparable combat 
capabilities to current anti-personnel landmines and anti-
personnel landmines used in mixed systems.

                army missile defense systems integration

      The conferees are aware of the High Accuracy Guidance 
(HAG) system and its potential to improve the capability of the 
seeker found in certain missile defense interceptors. 
Therefore, the conferees strongly urge the Department to 
conduct additional tests of the HAG system.

                     ANTI-ARMOR WEAPONS MASTER PLAN

      The conferees agree with the House direction with regard 
to submission of an Anti-Tank Weapon Master Plan and further 
direct that the scope of the report be expanded to include all 
DoD weapon systems with an anti-armor capability.

  Ultra-Light Steel Based High mobility Multi-purpose Wheeled Vehicle 
                                (HMMWV)

      The conferees direct the Secretary of the Army to submit 
a report to the congressional defense committees with the 
fiscal year 2000 budget request assessing the potential 
benefits of integrating advanced commercially based tactical 
truck platforms incorporating leading edge ultra-steel concepts 
into its HMMWV fleet replacement plan.

                  Medical Research Program Management

      The conferees commend the Army for organizing outstanding 
medical research initiatives in various fields of study that 
have received high marks from independent review panels and 
from various advocacy groups. The conferees note especially the 
1997 review of the Army's breast cancer research program by the 
Institute of Medicine of the National Research Council. This 
review concluded that the Army's program ``fills a unique niche 
among public and private funding sources for cancer research . 
. . and is a promising vehicle for forging new ideas and 
scientific breakthroughs in the nation's fight against breast 
cancer.'' The conferees have received similar reports about the 
other medical research programs managed by the Army. The 
conferees expect the Army to continue its emphasis on 
coordinating and integrating its medical research programs with 
those of the National Institutes of Health to avoid duplication 
and to accelerate promising avenues of treatment. In setting 
annual research priorities, the Army should consider ways to 
maximize involvement from responsible advocacy and survivor 
groups, especially in the Prostate research program. The 
conferees also urge the Army to consider ways to lengthen the 
terms of peer review group members for the Neurofibromatosis 
program and other smaller programs to promote consistency of 
guidance and direction.

                           Metals Remediation

      The conferees urge the Department to provide up to 
$2,750,000 for a metals remediation demonstration project at 
Wheeler Army Air Field. This effort would demonstrate the 
technology in the fragile Pacific ecosystems and potentially 
reduce infrastructure and environmental cleanup costs.

                           Diabetes Research

      The conference agreement includes $4,500,000 to continue 
the successful diabetes research program currently underway. 
The conferees urge the Department to work to include the 
activities identified in House Report 105-591.

            Research, Development, Test and Evaluation, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
    RESEARCH, DEVELOPMENT, TEST & EVAL, NAVY
IN-HOUSE LABORATORY INDEPENDENT RESEARCH........          14,734          14,248          14,734          14,734
DEFENSE RESEARCH SCIENCES.......................         347,945         324,495         347,945         347,945
AIR AND SURFACE LAUNCHED WEAPONS TECHNOLOGY.....          37,140          41,140          40,140          41,140
SHIP, SUBMARINE & LOGISTICS TECHNOLOGY..........          43,177          45,177          46,177          56,677
AIRCRAFT TECHNOLOGY.............................          23,229          27,029          30,729          29,229
MARINE CORPS LANDING FORCE TECHNOLOGY...........          12,132          13,632          12,132          13,132
HISTORICALLY BLACK COLLEGES AND UNIVERSITIES....           4,699           6,699           4,699           6,699
COMMUNICATIONS, COMMAND AND CONTROL,
 INTELLIGENCE...................................          65,033          60,033          68,033          64,033
HUMAN SYSTEMS TECHNOLOGY........................          29,722          31,722          29,722          31,722
MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY..          77,617          80,617          93,117          88,117
ELECTRONIC WARFARE TECHNOLOGY...................          23,849          22,849          23,849          22,849
UNDERSEA WARFARE SURVEILLANCE TECHNOLOGY........          50,619          51,119          50,619          51,119
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY........          56,722          70,222          57,472          69,222
UNDERSEA WARFARE WEAPONRY TECHNOLOGY............          34,856          36,856          44,356          40,856
DUAL USE APPLICATIONS PROGRAM...................          20,000          20,000          10,000          10,000
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY.....          48,143          46,143          43,143          48,143
PRECISION STRIKE AND AIR DEFENSE TECHNOLOGY.....          58,306          62,306          54,406          54,406
SURFACE SHIP & SUBMARINE HM&E ADVANCED
 TECHNOLOGY.....................................          39,264          47,264          46,264          51,264
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION
 (ATD)..........................................          41,931          51,931          52,931          56,931
MEDICAL DEVELOPMENT.............................          18,728          69,028          20,728          68,728
MANPOWER, PERSONNEL AND TRAINING ADV TECH DEV...          21,042          26,042          23,042          26,542
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED
 TECHNOLOGY.....................................          20,919          20,919          26,919          22,919
UNDERSEA WARFARE ADVANCED TECHNOLOGY............          56,827          56,827          60,027          58,827
MINE AND EXPEDITIONARY WARFARE ADVANCED
 TECHNOLOGY.....................................          41,710          41,710          42,710          42,710
ADVANCED TECHNOLOGY TRANSITION..................          74,392          59,392          84,392          73,892
C3 ADVANCED TECHNOLOGY..........................          22,294          28,294          29,794          40,294
MARITIME TECHNOLOGY.............................  ..............  ..............          20,000          19,000
AIR/OCEAN TACTICAL APPLICATIONS.................          28,824          25,824          28,824          25,824
AVIATION SURVIVABILITY..........................           8,164          13,164           8,164          11,164
ASW SYSTEMS DEVELOPMENT.........................          20,184          35,184          20,184          26,184
ADVANCED COMBAT SYSTEMS TECHNOLOGY..............           8,653           6,653           8,653           6,653
ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT...          68,402          75,802          68,402          73,402
SURFACE SHIP TORPEDO DEFENSE....................  ..............           6,000  ..............           5,000
CARRIER SYSTEMS DEVELOPMENT.....................         154,307          64,307          74,307          74,307
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT..........          27,725          28,725          24,725          25,725
SHIP CONCEPT ADVANCED DESIGN....................          14,900          19,900          14,900          14,900
SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES...          42,668          42,668           8,000          44,596
ADVANCED SURFACE MACHINERY SYSTEMS..............          58,419          34,919          63,419          58,419
CONVENTIONAL MUNITIONS..........................          39,775          42,775          39,775          40,775
MARINE CORPS ASSAULT VEHICLES...................         104,822         108,822         104,822         104,822
MARINE CORPS MINE/COUNTERMEASURES SYSTEMS--ADV
 DEV............................................           1,958           2,958           1,958           1,958
MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM.......          37,133          39,633          50,633          53,133
COOPERATIVE ENGAGEMENT..........................         131,623         186,123         141,623         196,123
ENVIRONMENTAL PROTECTION........................          59,438          73,138          61,938          74,438
NAVY LOGISTICS PRODUCTIVITY.....................  ..............           3,000  ..............           3,000
RETRACT MAPLE...................................         117,186         115,686         117,186         115,686
RETRACT ELM.....................................          11,665          22,165          11,665          19,665
NATO RESEARCH AND DEVELOPMENT...................          11,004  ..............           9,004           9,004
LAND ATTACK TECHNOLOGY..........................         110,104         103,104          92,404         105,604
JOINT STRIKE FIGHTER (JSF)--DEM/VAL.............         463,402         463,402         478,402         470,902
NONLETHAL WEAPONS--DEM/VAL......................          22,592          25,092          35,892          34,592
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM
 (HDSTDS).......................................           9,827           9,827           9,827           3,000
SPACE AND ELECTRONIC WARFARE (SEW) ARCHITECTURE/
 ENGINE.........................................          17,955          17,955          20,955          19,955
OTHER HELO DEVELOPMENT..........................         231,120         231,620         253,120         262,120
AV-8B AIRCRAFT--ENG DEV.........................          13,787          50,387          13,787          40,587
S-3 WEAPON SYSTEM IMPROVEMENT...................          31,469           4,376          26,469           4,376
H-1 UPGRADES....................................          98,542         122,542         121,942         121,942
ACOUSTIC SEARCH SENSORS.........................          29,637          31,637          29,637          30,637
AIR CREW SYSTEMS DEVELOPMENT....................           9,454          12,454           9,454          11,954
EW DEVELOPMENT..................................         128,586         137,886         138,586         137,886
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING.....         132,561         169,061         134,561         164,061
STANDARD MISSILE IMPROVEMENTS...................           1,320           1,320           6,320          11,320
AIRBORNE MCM....................................          24,967          30,967          26,967          28,967
SSN-688 AND TRIDENT MODERNIZATION...............          50,300          60,300          65,300          62,300
AIR CONTROL.....................................           4,198           4,198           8,198           7,698
NEW DESIGN SSN..................................         218,816         240,816         231,816         235,816
SSN-21 DEVELOPMENTS.............................          27,456          22,456          27,456          22,456
SUBMARINE TACTICAL WARFARE SYSTEM...............          28,573          28,573          30,573          28,573
SHIP CONTRACT DESIGN/ LIVE FIRE T&E.............         133,645          60,845         137,645         130,717
NAVY TACTICAL COMPUTER RESOURCES................           8,249          44,749           8,249          28,249
NAVY ENERGY PROGRAM.............................           5,544           5,544           3,544           3,544
JOINT STANDOFF WEAPON SYSTEMS...................          73,022           8,022          73,022          48,022
LOW COST STAND-OFF WEAPON.......................  ..............          10,000  ..............  ..............
SHIP SELF DEFENSE--EMD..........................         148,165         148,165         156,665         156,665
MEDICAL DEVELOPMENT.............................           4,321           9,721           5,321           5,821
DISTRIBUTED SURVEILLANCE SYSTEM.................          42,017          55,417          42,017          50,017
COMMERCIAL OPERATIONS AND SUPPORT SAVINGS
 INITIATIVE.....................................          28,500          14,600          18,500          16,500
TARGET SYSTEMS DEVELOPMENT......................          54,800          54,800          50,800          54,800
MAJOR T&E INVESTMENT............................          17,281          23,281          17,281          21,281
STUDIES AND ANALYSIS SUPPORT-NAVY...............          10,132           6,132          10,132           6,132
TECHNICAL INFORMATION SERVICES..................           8,513           8,513           6,013           6,013
DISTRIB/IMAGERY COMMON GRD SYSTEMS..............  ..............           4,966  ..............  ..............
RDT&E SCIENCE AND TECHNOLOGY MANAGEMENT.........          64,455          54,455          64,455          64,455
RDT&E SHIP AND AIRCRAFT SUPPORT.................          57,421          55,421          57,421          55,421
TEST AND EVALUATION SUPPORT.....................         260,601         256,801         245,601         255,801
SEW SURVEILLANCE/RECONNAISSANCE SUPPORT.........          13,185          15,185          17,185          16,185
AIRBORNE RECONNAISSANCE SYS.....................  ..............          16,448  ..............  ..............
MARINE CORPS PROGRAM WIDE SUPPORT...............           7,132          14,632           7,132          13,632
SSBN SECURITY TECHNOLOGY PROGRAM................          33,588          28,588          33,588          31,088
F/A-18 SQUADRONS................................         357,214         288,805         336,314         308,805
TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER
 (TMPC).........................................          66,727         165,300          66,727         166,300
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT.......          28,390          32,490          35,390          36,890
HARM IMPROVEMENT................................          18,921          33,921          18,921          30,921
SURFACE ASW COMBAT SYSTEM INTEGRATION...........           9,390           9,390           9,390          13,390
AVIATION IMPROVEMENTS...........................          64,956          61,956          68,956          63,956
NAVY SCIENCE ASSISTANCE PROGRAM.................  ..............  ..............          12,000          12,000
MARINE CORPS COMMUNICATIONS SYSTEMS.............          50,594          56,390          50,594          55,390
MARINE CORPS GROUND COMBAT/SUPPORTING ARMS
 SYSTEMS........................................          14,699          14,699          17,699          18,699
TACTICAL UAV....................................  ..............          55,200  ..............          51,192
TACTICAL UAV (MC)...............................  ..............           8,000  ..............           6,000
VERTICAL TAKEOFF LANDING........................  ..............  ..............          10,000  ..............
ADVANCED SENSORS/TECH...........................  ..............  ..............           8,448          16,448
COMMON IMAGERY GROUND/SURFACE SYS...............  ..............  ..............           4,966           4,966
MANNED RECONNAISSANCE SYSTEMS...................             342          42,751             342          30,342
INTEGRATED BROADCAST SERVICE....................  ..............          14,580  ..............          14,580
DEPOT MAINTENANCE (NON-IF)......................          69,967  ..............          49,967          69,967
INDUSTRIAL PREPAREDNESS.........................          59,060          69,060          59,060          69,060
CLASSIFIED PROGRAMS.............................         521,541         542,041         528,241         531,741
ADVISORY AND ASSISTANCE SERVICES................  ..............         -50,000  ..............         -50,000
CIVILIAN PERSONNEL UNDEREXECUTION...............  ..............  ..............  ..............          -5,000
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                              Budget        House        Senate      Conference
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES................................      347,945      324,495       347,945       347,945
    Budget growth........................................            0      -23,450             0             0
    Marine mammal research...............................            0            0          (500)         (500)
      (Note: Other than marine mammal research, Defense
       Research Sciences funds may not be diverted to or
       augmented via below-threshold reprogramming for
       projects not requested in the fiscal year 1999
       budget)
SHIPS, SUBMARINE & LOGISTICS TECHNOLOGY..................       43,177       45,177        46,177        56,677
    Ship machinery component level intelligent
     distributed control systems for AUVs................            0        2,000             0         1,500
    Stainless steel double hull..........................            0            0         3,000         2,000
    High precision fabrication technology for large steel
     structural components requiring compound curvatures
     and precise dimensional control to be used in
     advanced ship designs...............................            0            0             0         5,000
    Bioenvironmental hazards.............................            0            0             0         5,000
      (Note: Bioenvironmental hazards was funded in a
       different line in the House bill)
AIRCRAFT TECHNOLOGY......................................       23,229       27,029        30,729        29,229
    Vectored thrust ducted propeller.....................            0        2,000         7,500         5,000
    Advanced 1000-plus line resolution charged coupled
     device II night vision camera.......................            0        1,800             0         1,000
COMMUNICATIONS, COMMAND AND CONTROL, INTELLIGENCE........       65,033       60,033        68,033        64,033
    Hybrid wireless fiber optic communications...........            0        1,000             0         1,000
    Infrared search and track............................            0       -1,000             0             0
    General reduction....................................            0       -5,000             0        -5,000
    USEA radar...........................................            0            0        11,000        11,000
    Strategic sustainment program........................            0            0        -8,000        -8,000
MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY...........       77,617       80,617        93,117        88,117
    Advanced energy devices..............................            0            0         1,000             0
    Nanoscale materials and devices......................            0            0         1,000             0
    Advanced materials intelligent processing center.....            0            0         5,000         3,000
    High temperature superconducting ship propulsion/
     auxiliary systems...................................            0            0         2,000         2,000
    Superconducting waveform generator...................            0        3,000             0         1,000
    Materials micronization technology...................            0            0             0         4,000
    Carbon-carbon materials for reentry bodies...........            0        1,000         2,500         1,500
    Silicon carbide semiconductor substrates.............            0        3,500         2,500         3,500
    Ultra-high thermal conductivity fibers...............            0        2,500         1,500         2,500
    Terfenol-D...........................................            0       (1,800)            0             0
    General reduction....................................            0       -7,000             0        -7,000
      (Note: Funds for materials micronization technology
       are only to initiate a program to demonstrate
       newly developed technology to micronize coal and
       other particles to sizes approaching five microns
       to reduce the cost of precursors for composite
       materials, fuel cell membranes, filtration
       technology, diesel fuel, and other materials and
       processes important to national defense)
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY.................       56,722       70,222        57,472        69,222
    Autonomous underwater vehicle and sensor development.            0       10,000             0        10,000
    Naval Surface Warfare Center South Florida test
     facility............................................            0        2,750             0         2,000
    PM-10 clean air study................................            0          750           750           500
UNDERSEA WARFARE WEAPONRY TECHNOLOGY.....................       34,856       36,856        44,356        40,856
    Micro electromechanical technology...................            0        2,000             0         1,000
    Lithium carbon monoflouride batteries for mine
     applications........................................            0            0           500             0
    Computational engineering research...................            0            0         3,000         3,000
    Half-length torpedo..................................            0            0         3,000         2,000
    6.25'' anti-torpedo torpedo..........................            0            0         3,000             0
DUAL USE APPLICATIONS PROGRAM............................       20,000       20,000        10,000        10,000
    National Technology Alliance Program.................            0      (15,000)            0             0
    Program decrease.....................................            0            0       -10,000       -10,000
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY..............       48,143       46,143        43,143        48,143
    VECTOR...............................................            0       -7,000        -5,000        -2,000
    DP-2.................................................            0        5,000             0         2,000
PRECISION STRIKE AND AIR DEFENSE TECHNOLOGY..............       58,306       62,306        54,406        54,406
    Mobile off-shore basing..............................            0        5,000         5,000         5,000
    General reduction....................................            0       -1,000             0             0
    Fleet ATDs...........................................            0            0        -8,900        -8,900
      (Note: Concerning mobile off-shore basing, the
       conferees do not agree to House language but
       direct that $1,000,000 of the $5,000,000 provided
       in this Act be provided to the OSD Office of
       Acquisition and Technology (PE 0603728D) only for
       joint community MOB assessments and studies)
SURFACE SHIP & SUBMARINE HM&E ADVANCED TECHNOLOGY........       39,264       47,264        46,264        51,264
    Power electronic building blocks.....................            0        6,000         3,000         6,000
    Power node converters................................            0        2,000             0         2,000
    Composite helicopter hangar..........................            0            0         5,000         5,000
    Advanced electronic systems..........................            0            0        -1,000        -1,000
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD).....       41,931       51,931        52,931        56,931
    BURRO project........................................            0        5,000         5,000         5,000
    SMAW product improvement program.....................            0        5,000             0         5,000
    Warfighting lab Modeling and Simulation..............            0            0         5,000         4,000
    K-band training and test instrumentation system......            0            0         1,000         1,000
MEDICAL DEVELOPMENT......................................       18,728       69,028        20,728        68,728
    Bone marrow donor program............................            0       34,000             0        34,000
    Naval blood research laboratory......................            0        3,000             0         1,500
    Dental research......................................            0        4,000             0         3,000
    National Biodynamics Laboratory......................            0        1,800             0         1,800
    Medical readiness telemedicine initiative............            0        4,500            0,         3,000
    Rural health.........................................            0        3,000             0         3,000
    Freeze dried blood...................................            0            0         1,000           850
    Directly transfusable cryoprotected blood products...            0            0         1,000           850
    Center for disaster management (Note: $1,000,000 is
     only for the Center for Disaster Management and
     Humanitarian Assistance)............................            0            0             0         1,000
    Telemedicine (Note: $1,000,000 is only for a
     university/community hospital telemedicine/
     telehealth consortium)..............................            0            0             0         1,000
MANPOWER, PERSONNEL AND TRAINING ADVANCED TECH
 DEVELOPMENT.............................................       21,042       26,042        23,042        26,542
    Advanced distributed learning........................            0        5,000             0         4,500
    Integrated manufacturing studies.....................            0            0         2,000         1,000
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECHNOLOGY..       20,919       20,919        26,919        22,919
    Asbestos removal.....................................            0            0         4,000             0
    Visualization of technical information...............            0            0         2,000         2,000
UNDERSEA WARFARE ADVANCED TECHNOLOGY.....................       56,827       56,827        60,027        58,827
    Terfenol-D...........................................            0            0         3,200         2,000
      (Note: The conferees direct that fiscal year 1998
       funds appropriated only for Terfenol-D be moved to
       this program for execution)
ADVANCED TECHNOLOGY TRANSITION...........................       74,392       59,392        84,392        73,892
    General reduction....................................            0      -15,000             0       -10,000
    SLICE trailer........................................            0            0        10,000         9,500
C3 ADVANCED TECHNOLOGY...................................       22,294       28,294        29,794        40,294
    Dominant battlespace command.........................            0        6,000             0         3,000
    National Technology Alliance Program.................            0            0         7,500        15,000
      (Note: The National Technology Alliance consists of
       the National Information Display Laboratory, the
       National Center for Applied Technologies, and the
       National Media Laboratory)
MARITIME TECHNOLOGY......................................            0            0        20,000        19,000
    Transfer from DARPA..................................            0            0        15,000        15,000
    Program increase.....................................            0            0         5,000         4,000
      (Note: The conferees direct the Secretary of the
       Navy to provide $2,400,000 to the Maritime
       Administration to complete testing of the
       potential interim solution to remediate potential
       damage resulting from oil spills from existing
       tank vessels such as the ``American Underpressure
       System.'' The conferees believe that this system
       may have significant defense applications and may
       also provide environmental safeguards for tank
       vessels.)
AVIATION SURVIVABILITY...................................        8,164       13,164         8,164        11,164
    Escape system dynamic flow test facility.............            0        3,000             0         1,000
    Helicopter aircrew integrated life support system....            0        2,000             0         2,000
ASW SYSTEMS DEVELOPMENT..................................       20,184       35,184        20,184        26,184
    Beartrap acoustic processor for SH-60B LAMPS
     helicopter..........................................            0        9,000             0         5,000
      (Note: Conferees do not agree to House language
       that these funds be solely for RAINBOW processors)
    Beartrap advanced ASW technologies...................            0        3,000             0             0
    SSQ-62 sonobuoy at-sea performance evaluation........            0        3,000             0         1,000
ADVANCED COMBAT SYSTEMS TECHNOLOGY.......................        8,653        6,653         8,653         6,653
    General reduction....................................            0       -2,000             0        -2,000
    Visualization architecture and technology............            0            0             0        (2,000)
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT...................       27,725       28,725        24,725        25,725
    150 Kilowatt static frequency converters.............            0        1,000             0         1,000
    Shipboard auxiliary systems development..............            0            0        -3,000        -3,000
SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES............       42,668       42,668         8,000        44,596
    SSGN study...........................................            0            0         1,000         1,000
    CV feasibility studies...............................            0            0       -35,688        -5,000
    CVX red team.........................................            0            0        (5,000)            0
    ADC(X)...............................................            0            0             0         5,928
      (Note: Funds for ADC(X) were requested in the
       budget and have been transferred to this line for
       execution based on Navy assessment of program
       maturity)
ADVANCED SURFACE MACHINERY SYSTEMS.......................       58,419       34,919        63,419        58,419
    Intercooled recuperated gas turbine engine...........            0      -23,500         5,000             0
MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM................       37,133       39.633        50,633        53,133
    Lightweight howitzer.................................            0        2,500             0         7,000
      (Note: Of the amount provided for lightweight
       howitzer, $4,500,000 is transferred from
       Procurement, Marine Corps)
    Trajectory corrected munitions.......................            0            0         7,500         5,000
    SMAW follow-on.......................................            0            0         4,000         3,000
    Predator.............................................            0            0         2,000         1,000
COOPERATIVE ENGAGEMENT...................................      131,623      186,123       141,623       196,123
    Aegis integration....................................            0       -9,500             0        -9,500
    LAMPS data link......................................            0       -3,000             0        -3,000
    Battlegroup developmental and operational testing....            0       20,000             0        20,000
    Design agent transition..............................            0       15,000             0        15,000
    Large network capability.............................            0       13,000             0        13,000
    Low cost common equipment set........................            0       10,000             0        10,000
    Land based network...................................            0        9,000             0         9,000
    CEC/SBIRS integration................................            0            0        10,000        10,000
ENVIRONMENTAL PROTECTION.................................       59,438       73,138        61,938        74,438
    Aviation depot maintenance technology................            0        2,700             0         2,000
    Resource recovery technology center..................            0        7,000             0         7,000
    Asbestos removal.....................................            0        4,000             0         4,000
    Molten salt oxidation technology.....................            0            0         2,500         2,000
NATO RESEARCH AND DEVELOPMENT............................       11,004            0         9,004         9,004
    VECTOR...............................................            0       -5,000             0             0
    General reduction....................................            0       -6,004        -2,000        -2,000
      (Note: Within the amount provided for NATO R&D,
       $1,000,000 is only for international cooperative
       R&D applying Norwegian mine clearing technology)
LAND ATTACK TECHNOLOGY...................................      110,104      103,104        92,404       105,604
    Vertical gun system..................................            0       -7,000       -10,000       -10,000
    Surface fire support integration.....................            0            0        -7,700        -2,500
    Extended range guided munition.......................            0            0             0         8,000
      (Note: ERGM was funded in the Procurement of
       Ammunition, Navy account in the Senate bill)
NONLETHAL WEAPONS--DEM/VAL...............................       22,592       25,092        35,892        34,592
    Joint non-lethal directorate human effects panel.....            0        2,500             0         2,000
    Accelerate non-lethal technologies...................            0            0         6,300         5,000
    Non-lethal tactical denial system....................            0            0         7,000         5,000
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM (HDBTDS).....        9,827        9,827         9,827         3,000
    Program reduction....................................            0            0        (9,827)       -9,827
    Analysis of alternative..............................            0            0             0         3,000
OTHER HELO DEVELOPMENT...................................      231,120      231,620       253,120       262,120
    LAMPS data link (transfer from CEC)..................            0        3,000             0         3,000
    CH-60 mine countermeasures testing...................            0       15,000             0        12,000
    Naval Air Warfare Center aircraft division ship
     ground station......................................            0        1,000             0         1,000
    Advanced low frequency sonar.........................            0      -18,500             0             0
    SH-60 LAMPS COTS acoustic/radar data processor.......            0            0        15,000        10,000
    Parametric airborne dipping sonar....................            0            0         8,000         6,000
    Helicopter development CDR...........................            0            0        -1,000        -1,000
AV-8B AIRCRAFT--ENG DEV..................................       13,787       50,387        13,787        40,587
    Open systems core avionics...........................            0       31,500             0        26,800
    Landing signal officer automated shipboard operating
     bulletin............................................            0        5,100             0             0
S-3 WEAPON SYSTEM IMPROVEMENT............................       31,469        4,376        26,469         4,376
    Common support aircraft..............................            0      -27,093        -5,000       -27,093
    Common support aircraft, floor amendment.............            0            0        (8,000)            0
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING..............      132,561      169,061       134,561       164,061
    CEC integration (transfer from CEC)..................            0        9,500             0         9,500
    Aegis baseline software development..................            0       27,000             0        20,000
    High dynamic range, low-cost, towed array receiver/
     beamformer sonar system.............................            0       (9,000)            0             0
    Labs and field activities monitoring efforts.........            0            0        -3,000        -3,000
    DDG-51 composite director room.......................            0            0         5,000         5,000
STANDARD MISSILE IMPROVEMENTS............................        1,320        1,320         6,320        11,320
    ADSAM demonstration..................................            0            0         5,000         5,000
    Optical correlators..................................            0            0             0         5,000
AIRBORNE MCM.............................................       24,967       30,967        29,967        28,967
    CH-60 borne autonomous mine destruction..............            0        2,000         2,000         2,000
    SWIMS acoustic projector.............................            0        4,000             0         2,000
NEW DESIGN SSN...........................................      218,816      240,816       231,816       235,816
    Submarine technology insertion.......................            0       10,000             0         5,000
    Glass-reinforced plastic/rubber sandwich sonar domes.            0        7,000         7,000         7,000
    Non-propulsion electronics...........................            0        5,000         6,000         5,000
SHIP CONTRACT DESIGN/LIVE FIRE T&E.......................      133,645       60,845       137,645       130,717
    DD-21................................................            0      -68,872             0             0
    ADC(X)...............................................            0       -5,928             0        -5,928
    Smart propulsor product model........................            0        2,000         4,000         3,000
NAVY TACTICAL COMPUTER RESOURCES.........................        8,249       44,749         8,249        28,249
    UYQ-70 display improvements..........................            0       17,000             0        15,000
    Virtual prototyping of electronic circuits...........            0       14,500             0             0
    Computer aided dead reckoning tracer.................            0        5,000             0         5,000
SHIPS SELF DEFENSE--EMD..................................      148,165      148,165       156,665       156,665
    Infrared search and track............................            0            0         6,500         6,500
    NULKA................................................            0            0         2,000         2,000
      (Note: Funds for infrared search and track are only
       to develop a production-representative IRST
       system, to support testing coincident with the
       multi-function radar system, whose development and
       testing must include deployment in a permanent
       installation in an active Navy warship)
MEDICAL DEVELOPMENT......................................        4,321        9,721         5,321         5,821
    Filtration materials with high-flow biocide
     characteristics.....................................            0        2,000             0        (2,000)
    Voice instructional device modifications.............            0        3,400         1,000         1,500
DISTRIBUTED SURVEILLANCE SYSTEM..........................       42,017       55,417        42,017        50,017
    All-optical deployable system........................            0        6,700             0         4,000
    ADS automation and data fusion.......................            0        6,700             0         4,000
TEST AND EVALUATION SUPPORT..............................      260,601      256,801       245,601       255,801
    General reduction....................................            0       -5,800       -15,000        -5,800
    Man-overboard indicator..............................            0        2,000             0         1,000
SEW SURVEILLANCE/RECONNAISSANCE SUPPORT..................       13,185       15,185        17,185        16,185
    COTS visualization software and database servers.....            0        2,000             0         1,000
    Global C4ISR visualization...........................            0            0         4,000         2,000
MARINE CORPS PROGRAM WIDE SUPPORT........................        7,132       14,632         7,132        13,632
    Interim biological agent detection system, phase III.            0        4,000             0         3,500
    Probable cause detection system......................            0        3,500             0         3,000
F/A-18 SQUADRONS.........................................      357,214      288,805       336,314       308,805
    Superhornet advanced reconnaissance pod..............            0      -43,409         2,500       -43,409
    Excessive budget growth..............................            0      -25,000             0        -5,000
    Tactical reconnaissance development..................            0            0       -23,400             0
TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER (TMPC).....       66,727      165,300        66,727       166,300
    Tactical tomahawk....................................            0       98,573             0        98,573
    Alternate turbine engine.............................            0            0        (1,000)        1,000
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT................       28,390       32,490        35,390        36,890
    Rangeless training...................................            0        5,000             0         2,500
    Conversion of BFTT trainer to Windows operating
     enviroinment........................................            0        6,000         7,000         6,000
    Joint tactical combat training system................            0       -6,900        (9,827)            0
SURFACE ASW COMBAT SYSTEM INTEGRATION....................        9,390        9,390         9,390        13,390
    High dynamic range, low-cost, towed array receiver/
     beamformer sonar system.............................            0            0             0         4,000
      (Note: this item was funded in the Surface
       Combatant Combat System Engineering program in the
       House bill)
AVIATION IMPROVEMENTS....................................       64,956       61,956        68,956        63,956
    Engine component improvement.........................            0       -3,000             0        -3,000
    Eddy current sensors.................................            0            0         4,000         2,000
MARINE CORPS COMMUNICATIONS SYSTEMS......................       50,594       56,390        50,594        55,390
    Joint task force enhanced communications.............            0        5,000             0         4,000
    Tactical control and analysis center.................            0          796             0           796
MARINE CORPS GROUND COMBAT/SUPPORTING ARMS SYSTEMS.......       14,699       14,699        17,699        18,699
    Automatic target tracker.............................            0            0         3,000         2,000
    Shortstop............................................            0            0        (5,000)        2,000
TACTICAL UAV.............................................            0       55,200             0        51,192
    Multiple participant competitive demonstration.......            0       14,008             0        10,000
    Multi-function self-aligned gate technology..........            0        4,000             0         4,000
    Common systems development (transfer from R&D Defense-
     wide)...............................................            0        5,048             0         5,048
    Tactical control system..............................            0       32,144             0        32,144
ADVANCED SENSORS/TECH....................................            0            0         8,448        16,448
    Program transfer.....................................            0            0         8,448         8,448
    EO framing (on-chip FMC).............................            0            0             0         8,000
      (Note: this item was funded in Advanced Sensors/
       Technology program in the Senate bill.)
DEPOT MAINTENANCE (NON-IF)...............................       69,967            0        49,967        69,967
    Transfer to APN......................................            0      -69,967             0             0
    General reduction....................................            0            0       -20,000             0
CIVILIAN PERSONNEL UNDERSTRENGTH.........................            0            0             0        -5,000
----------------------------------------------------------------------------------------------------------------

                common integrated electric drive systems

      The conferees agree to Senate direction requiring a 
report on a common integrated electric drive system for surface 
combatant ships, but direct that development of superconducting 
DC homopolar motor technology also be addressed in the report.

           vectored thrust ducted propeller (vdtp) helicopter

      The conferees direct the Navy to submit to the Congress 
by December 1, 1998, a specific plan for accomplishing a flight 
demonstration of the VDTP compound helicopter technology. The 
conferees reiterate last year's language which directed that 
the Navy's H-60 program office shall have the responsibility 
for the management and execution of this program.

      semi-autonomous underwater vehicle for intervention missions

      The conferees have just been advised of a potential 
funding shortfall for the Semi-Autonomous Underwater Vehicle 
for Intervention Missions (SAUVIM) program in the upcoming 
year. The conferees encourage the Navy to ensure that 
sufficient funding is provided for this program to carry it 
through until the end of 1999.

                               project m

      The Congress appropriated $5,000,000 in fiscal year 1998 
for Project M, including funds for a prototype system for 
surface ships. The Navy has yet to obligate funds for a surface 
ship application. Of the amount requested in the fiscal year 
1999 budget and appropriated in this Act for Project M, 
$1,000,000 is only to begin development of a prototype system 
for surface ships. The conferees direct that the Navy budget 
funds in the future to ensure an at-sea demonstration of a full 
scale active control of machinery raft within two years.

                                 adc(x)

      The conferees direct that fiscal year 1999 funds may not 
be obligated for an ADC(X) program unless the program plan 
includes ship construction in at least two shipyards.

                               icr engine

      The conferees agree to provide the amount requested in 
the budget to continue development of the intercooled 
recuperated gas turbine engine. The conferees direct the 
Secretary of Defense to limit obligation of additional funds, 
while allowing the program to proceed in an orderly basis, 
until an international memorandum of understanding has been 
promulgated ending United States government participation in 
the ICR development program after design review five at a cost 
of no more than $60,000,000 in fiscal year 1999 and subsequent 
fiscal years.

                           tactical tomahawk

      The conferees are aware that the contract solicitation 
for the tactical Tomahawk weapons control system does not 
specify the type of display to be used. The recent contract 
award for the standard Navy display system for air, surface, 
and subsurface applications specified that development of new 
configurations to meet legacy equipment replacement 
requirements would be accomplished under that contract. 
Accordingly, the Navy should avoid duplication in development 
costs and take advantage of the economies of scale and 
infrastructure support by developing the tactical Tomahawk 
display under this contract.

                           seawolf shock test

      The conferees agree to House language concerning system-
level, live-fire shock testing of Seawolf submarines and note 
that the Commander in Chief of the Atlantic Command has 
recently indicated that he has no requirement for such a test. 
The conferees fully endorse the existing live fire legislation 
and testing for weapon systems in a normal acquisition cycle. 
The conferees fully expect that the Defense Department will 
conduct such a test on the New Attack Submarine early in its 
production cycle, where the lessons-learned from the test can 
be incorporated into future production of that weapon system. 
The unique circumstances that caused the Congress not to 
support the Seawolf shock test should not be viewed either that 
Congress no longer requires live fire testing nor as a 
precedent for other weapon systems to be exempted from the 
requirements of law.

                           rangeless training

      The House proposed to terminate the Joint Tactical Combat 
Training System (JTCTS) and eliminate a total of $17,300,000 in 
four procurement or RDT&E line items. The House also proposed 
an alternate system, the integrated Large Area Tracking Range 
(LATR)/Kadena Interim Training System (KITS), and provided a 
total of $15,000,000 in three procurement or RDT&E line items. 
The Senate provided the amount requested by the Defense 
Department for JTCTS, with an increase of $9,827,000 in the 
Navy RDT&E account to provide an initial JTCTS system to 
support Cope Thunder exercises. The budget requested funds to 
initiate JTCTS production in fiscal year 1999.
      Since JTCTS has not entered into production, and 
development and testing has not been completed, there is an 
opportunity to ensure that the Defense Department has 
identified the best technical solution prior to expenditure of 
significant amounts of funds in future years for rangeless 
training equipment. The conferees also want assurance that 
combat training systems for tactical aircraft will be 
compatible with surface ship and submarine training range 
systems, to the extent practicable, for joint service exercise 
or Navy battlegroup training. The conferees direct that the 
Defense Department conduct a technical evaluation, using actual 
equipment, to compare the capabilities, performance, and costs 
of an integrated LATR/KITS system to JTCTS. The conferees 
therefore agree to provide the full amount requested in RDT&E 
for JTCTS, plus an additional $2,500,000 in the Navy RDT&E 
account only for LATR/KITS integration. The conferees agree to 
a reduction of a total of $9,000,000 in Air Force procurement 
accounts requested for JTCTS, but an increase of a total of 
$20,000,000 in Navy and Air Force Other Procurement accounts 
which is only for purchase of equipment needed to conduct the 
technical evaluation, and purchase of objective systems once 
reporting requirements in the next paragraph have been met. Of 
this amount, $8,000,000 is only to begin installation of a 
rangeless training system to support Cope Thunder exercises. 
Further, the conferees direct that the JTCTS RDT&E funds are 
provided to proceed with equipping CAG 5 with an initial JTCTS 
training capability in fiscal year 1999.
      The goal of the technical evaluation is to ensure that 
the Defense Department has identified the best technical 
solution to meet its rangeless training needs which minimizes 
technical risk at lowest life cycle cost based on performance 
of real equipment in a realistic environment. The conferees 
direct that no funds may be obligated for rangeless training 
production, other than those needed to conduct the technical 
evaluation, until the following criteria have been met:
      The Director of Operational Test and Evaluation in the 
Office of the Secretary of Defense has certified to the 
congressional defense committees that the Defense Department 
has established a technical evaluation between JTCTS and 
integrated LATR/KITS which is reasonable, realistic, and 
objective in order to determine the relative performance of the 
systems;
      The technical evaluation has been conducted and the 
results reported to the congressional defense committees; and
      The Undersecretary of Defense for Acquisition and 
Technology has certified to the congressional defense 
committees that the best technical solution to meet DOD 
rangeless training requirements at the best value has been 
identified and validated by the results of the technical 
evaluation. His certification should include a determination 
whether the most cost effective method to satisfy future Navy 
and Air Force training needs is to continue development and 
deployment of JTCTS, begin an evolutionary LATR/KITS system 
development and deployment, or expand the JTCTS program to 
include integrated LATR/KITS features.

         Research, Development, Test and Evaluation, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
     RESEARCH, DEVELOPMENT, TEST AND EVAL, AF
DEFENSE RESEARCH SCIENCES.......................         209,395         202,751         209,395         210,395
MATERIALS.......................................          62,578          72,578          68,678          75,278
AEROSPACE PROPULSION............................          69,061          74,061          69,561          69,561
PHILLIPS LAB EXPLORATORY DEVELOPMENT............         116,139         116,139         125,139         129,139
COMMAND CONTROL AND COMMUNICATIONS..............          65,175          67,675          65,175          72,175
DUAL USE APPLICATIONS PROGRAM...................          19,606          19,606          10,000          10,000
LOGISTICS SYSTEMS TECHNOLOGY....................           8,677           9,677           8,677           9,177
ADVANCED MATERIALS FOR WEAPON SYSTEMS...........          21,006          37,006          25,006          33,006
AEROSPACE PROPULSION SUBSYSTEMS INTEGRATION.....          30,814          30,814          27,814          27,814
ADVANCED AVIONICS FOR AEROSPACE VEHICLES........          26,442          26,442          29,442          28,642
AEROSPACE PROPULSION AND POWER TECHNOLOGY.......          38,984          38,984          36,984          36,984
CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY          16,603          22,603          35,103          30,053
ELECTRONIC COMBAT TECHNOLOGY....................          25,553          31,553          39,553          25,553
SPACE AND MISSILE ROCKET PROPULSION.............          21,121          25,121          21,121          24,121
ADVANCED SPACECRAFT TECHNOLOGY..................          42,571          54,571          65,071          60,571
ADVANCED WEAPONS TECHNOLOGY.....................          40,153          50,153          46,153          53,653
AIRBORNE LASER PROGRAM..........................         292,219         292,219         235,219         267,219
SATELLITE SYSTEM SURVIVABILITY..................  ..............  ..............          15,000           7,500
NATO RESEARCH AND DEVELOPMENT (H)...............          11,117  ..............          10,717           4,117
INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.....          29,360          42,360          16,360          27,337
GLOBAL BROADCAST SERVICE........................          70,147          67,947          70,147          70,147
AIR FORCE/NRO PARTNERSHIP (AFNP)................          17,645  ..............          17,645          17,645
SPACE-BASED LASER...............................          35,000          25,000          35,000          35,000
VARIABLE STABILITY IN-FLIGHT SIMULATOR TEST
 AIRCRAFT.......................................  ..............  ..............           7,400           4,000
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM
 (HDBTDS).......................................           9,803           9,803  ..............           3,000
F-22 EMD........................................       1,582,217       1,582,217       1,582,217       1,575,417
EW DEVELOPMENT..................................          90,126          95,126         100,126          98,626
SPACE BASED INFRARED SYSTEM (SBIRS) HIGH EMD....         538,438         538,438         543,238         541,938
GLOBAL POSITIONING SYSTEM BLOCK IIF (SPACE).....          62,591          62,591          84,591          73,591
LIFE SUPPORT SYSTEMS............................           3,744           6,744           3,744           6,244
COMBAT TRAINING RANGES..........................          14,581          13,181          14,581          14,581
COMPUTER RESOURCE TECHNOLOGY TRANSITION (CRTT)..             200           4,200             200           2,200
COMMERCIAL OPERATIONS AND SUPPORT SAVINGS
 INITIATIVE.....................................          27,937          14,037          17,937          15,937
EVOLVED EXPENDABLE LAUNCH VEHICLE PROGRAM
 (SPACE)........................................         280,297         230,297         280,297         260,297
THREAT SIMULATOR DEVELOPMENT....................          32,582          29,582          39,582          34,582
TARGET SYSTEMS DEVELOPMENT......................           1,666           1,666           9,666           6,666
MAJOR T&E INVESTMENT............................          34,518          42,018          39,518          41,068
INITIAL OPERATIONAL TEST & EVALUATION...........          24,541          24,541          24,541          29,541
TEST AND EVALUATION SUPPORT.....................         370,168         376,168         366,168         363,168
DEVELOPMENT PLANNING............................           6,075           6,075           4,075           4,075
POLLUTION PREVENTION............................           1,673           1,673           6,673           5,173
ROCKET SYSTEMS LAUNCH PROGRAM (SPACE)...........           7,865          18,865           7,865          14,865
B-52 SQUADRONS..................................           6,436           6,436           5,036           6,436
REGION/SECTOR OPERATION CONTROL CENTER
 MODERNIZATION..................................          13,592          21,792          18,792          21,792
F-16 SQUADRONS..................................         125,076         125,076         145,076         140,076
ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE
 (AMRAAM).......................................          45,078          15,078          36,078          36,078
SPECIAL EVALUATION PROGRAM......................          92,551          72,551         102,551         102,551
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...          92,069         117,069          92,069          97,069
JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM)...         132,870         129,870         132,870         129,870
AIRBORNE WARNING AND CONTROL SYSTEM (AWACS).....          28,189          28,189          36,189          34,189
EVALUATION AND ANALYSIS PROGRAM.................          84,950          84,950          72,150          72,150
ADVANCED PROGRAM TECHNOLOGY.....................          74,707          79,707          74,707          77,207
THEATER BATTLE MANAGEMENT (TBM) C4I.............          27,292          27,292          32,292          30,792
AIRBORNE RECON SYSTEMS..........................  ..............          47,362  ..............  ..............
JOINT SURVEILLANCE AND TARGET ATTACK RADAR
 SYSTEM.........................................         123,793          98,193          98,793         101,793
SEEK EAGLE......................................          17,590          19,590          17,090          19,090
ADVANCED PROGRAM EVALUATION.....................         272,914         260,914         251,014         208,314
TACTICAL INFORMATION PROGRAM (TIP)..............          10,685  ..............          10,685  ..............
INFORMATION WARFARE SUPPORT.....................           1,375           1,375           3,375           2,375
FOREIGN TECHNOLOGY DIVISION.....................           1,234           1,234           1,834           2,134
MISSILE AND SPACE TECHNICAL COLLECTION..........          18,595          26,595          12,595          20,595
E-4B NATIONAL AIRBORNE OPERATIONS CENTER (NAOC).           4,233           4,233           2,143           2,143
DEFENSE SATELLITE COMMUNICATIONS SYSTEM (SPACE).          15,641          13,141          15,641          14,141
INFORMATION SYSTEMS SECURITY PROGRAM............           8,420          10,420           8,420           9,420
SECURITY AND INVESTIGATIVE ACTIVITIES...........             458           1,458             458           1,458
TITAN SPACE LAUNCH VEHICLES (SPACE).............          87,443          87,443          77,443          77,443
DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)          20,432          17,932          20,432          17,932
NAVSTAR GLOBAL POSITIONING SYSTEM (USER
 EQUIPMENT).....................................          67,238          62,238          36,638          36,638
ENDURANCE UNMANNED AERIAL VEHICLES..............           4,307         182,975         155,457         188,957
ADVANCED SENSORS/TECHNOLOGY.....................  ..............  ..............         134,768         126,768
COMMON IMSGERY GROUND/SURFACE SYS...............  ..............  ..............          20,379  ..............
MANNED RECONNAISSANCE SYSTEMS...................  ..............          25,800          21,566          38,366
DISTRIBUTED COMMON GROUND/SURFACE SYSTEM
 INTEROPERABIL..................................  ..............          14,701  ..............          21,159
SPACETRACK (SPACE)..............................          39,532          38,532          42,832          45,832
C-5 AIRLIFT SQUADRONS...........................          47,940          47,940          33,736          33,736
C-17 AIRCRAFT...................................         123,069         123,069         108,069         119,069
KC-135S.........................................          11,093          11,093           1,093           1,093
INDUSTRIAL PREPAREDNESS.........................          50,997          50,997          53,997          52,997
PRODUCTIVITY, RELIABILITY, AVAILABILITY,
 MAINTAIN.......................................             970             970          14,970          10,470
COBRA BALL (FLD)................................  ..............  ..............           8,000           6,000
CLASSIFIED PROGRAMS.............................       4,420,330       4,188,138       4,189,930       4,281,116
CIVILIAN PERSONNEL UNDEREXECUTION...............  ..............  ..............  ..............          -9,600
ADVISORY AND ASSISTANCE SERVICES................  ..............         -40,000  ..............         -40,000
COMPASS CALL....................................  ..............          20,000  ..............          12,500
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES.......................         209,395         202,751         209,395         210,395
    Coal derived jet fuel.......................               0           3,500               0           3,000
    Center for Adaptive Optics..................               0           3,000               0           2,000
    Basic Research reduction....................               0         -13,144               0          -4,000
    Sacramento Peak Observatory.................               0           [650]           [650]           [650]
    Air Force Research Lab mission-focused
     research projects through AFIT.............               0               0         [3,000]         [3,000]
MATERIALS.......................................          62,578          72,578          68,678          75,278
    Advanced Material Research..................               0          10,000               0           8,000
    Friction stir welding.......................               0               0           1,500           1,200
    Environmentally safe aircraft coating.......               0               0           2,000           1,500
    Inorganic/organic optical limiters..........               0               0           2,600           2,000
AEROSPACE PROPULSION............................          69,061          74,061          69,561          69,561
    Variable dispacement vane pump for KC-135...               0           5,000           2,000           3,000
    Program reduction...........................               0               0          -4,000          -4,000
    Thermophotovoltaics.........................               0               0           2,500           1,500
PHILLIPS LAB EXPLORATORY DEVELOPMENT............         116,139         116,139         125,139         129,139
    HAARP.......................................               0               0           9,000           9 000
    Terabit.....................................               0               0               0           4,000
COMMAND CONTROL AND COMMUNICATIONS..............          65,175          67,676          65,175          72,175
    Protein memory..............................               0           2,500               0           2,000
    Cyber security program......................               0               0         [8,000]           5,000
ADVANCED MATERIALS FOR WEAPON SYSTEMS...........          21,006          37,006          25,006          33,006
    Advanced low observable coatings............               0           9,000               0           4,000
    National Center for Industrial
     Competitiveness............................               0           7,000               0           5,000
    Aerospace metals programs...................               0               0           4,000           3,000
CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY          16,603          22,603          35,103          30,053
    Ejection seat technology....................               0           3,000               0               0
    Aircrew laser eye protection................               0           3,000           5,500           4,250
    Panoramic night vision goggles..............               0               0           3,000           2,200
    ACES II risk reduction......................               0               0           2,000           2,000
    Helmet display technology...................               0               0           8,000           5,000
BALLISTIC MISSILE TECHNOLOGY....................               0          16,000          16,000          16,000
    Missile and GPS range safety technology dev.
     and demonstration..........................               0          16,000          16,000          16,000
ADVANCED SPACECRAFT TECHNOLOGY..................          42,571          54,571          65,071          60,571
    Scorpius....................................               0           5,000               0           2,500
    Miniature satellite threat reporting system.               0           7,000               0           5,000
    Range upgrades to support upper stage flight
     experiments................................               0               0           5,000               0
    Solar orbital transfer vehicle..............               0               0           7,500           4,500
    Micro-Satellite Technology Program..........               0               0          10,000           6,000
ADVANCED WEAPONS TECHNOLOGY.....................          40,153          50,153          46,153          53,653
    Geo Space Object Imaging....................               0          10,000               0           7,500
    Field laser radar upgrade...................               0               0           6,000           6,000
AIRBORNE LASER PROGRAM..........................         292,219         292,219         235,219         267,219
    Aircraft purchase and integration...........               0               0         -97,000               0
    Ground testing and targets..................               0               0          40,000               0
    Concurrency.................................               0               0               0         -25,000
INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.....          29,360          42,360          16,360          27,337
    Conventional ICBM ACTD......................               0          13,000               0          11,000
    Advanced IMU................................               0               0          -8,000          -6,000
    AIMU interferometer fiber opic gyro.........               0               0          -3,000          -3,000
    Sensor/instrumentation integration..........               0               0          -2,000          -2,000
    Evaluate force applications technologies of
     AF Global Studies..........................               0               0               0          -2,023
VARIABLE STABILITY IN-FLIGHT SIMULATOR TEST
 AIRCRAFT.......................................               0               0           7,400           4,000
    NF-16D VISTA support........................               0               0           3,800               0
    NF-16D VISTA VSS:
        Improvements............................               0               0           1,100               0
        Ground simulator........................               0               0           1,500               0
        Hotbench................................               0               0           1,000               0
        NF-16D VISTA Support and VSS............               0               0               0           4,000
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM
 (HDBTDS).......................................           9,803           9,803               0           3,000
    Complete Joint Analysis of Alternatives.....               0               0               0           3,000
F-22 EMD........................................       1,582,217       1,582,217       1,582,217       1,575,417
    Unused award fees identified by GAO.........               0               0               0          -6,800
EW DEVELOPMENT..................................          90,126          95,126         100,126          98,626
    Advanced flares for B-1 and C-17............               0           5,000               0           4,000
    Classified adjustment.......................               0               0          10,000               0
    PLAID for AN/ALR-69 (transfer from 0603270F)               0               0               0           4,500
THREAT SIMULATOR DEVELOPMENT....................          32,582          29,582          39,582          34,582
    JMASS delays................................               0          -3,000               0          -3,000
    REDCAP/DIADS................................               0               0               0           5,000
        Integration with ECIT...................               0               0           4,000               0
        Simulation threat correlation...........               0               0             600               0
        Special project laydowns................               0               0           1,000               0
        Technology proliferation................               0               0           1,400               0
MAJOR T&E INVESTMENT............................          34,518          42,018          39,518          41,068
    Santa Rosa Island range complex.............               0           5,000               0           2,500
    Eglin Range Complex.........................               0           2,500               0           1,250
    Hypersonic wind tunnel......................               0               0           5,000           2,800
TEST AND EVALUATION SUPPORT.....................         370,168         376,168         366,168         363,168
    Air Force Flight Test Center safety
     improvements...............................               0           6,000               0           3,000
    Program reduction...........................               0               0          -4,000         -10,000
JOINT SURVEILLANCE AND TARGET ATTACK RADAR
 SYSTEM.........................................         123,793          98,193          98,793         101,793
    RTIP reduction..............................               0         -25,600         -25,000         -25,000
    JSTARS multi-service datalink competition...               0               0               0           3,000
SEEK EAGLE......................................          17,590          19,590          17,090          19,090
    LongShot....................................               0           2,000               0           1,500
    Program reduction...........................               0               0            -500               0
NAVSTAR GLOBAL POSITIONING SYSTEM (USER
 EQUIPMENT).....................................          67,238          62,238          36,638          36,638
    NAVWAR pricing..............................               0          -5,000               0               0
    NAVWAR EMD..................................               0               0         -28,600         -28,600
    Undefined product improvement efforts.......               0               0          -2,000          -2,000
ENDURANCE UNMANNED AERIAL VEHICLES..............           4,307         182,975         155,457         188,957
    Darkstar....................................               0          40,518               0          34,000
    Global Hawk transfer/increase...............               0          90,051         115,051         102,551
    CGS transfer................................               0          48,099          36,099          48,099
ADVANCED SENSORS/TECHNOLOGY.....................               0               0         134,768         126,768
    Transfer....................................               0               0         125,768         125,768
    EO framing..................................               0               0           9,000               0
    High Data Rate Laser Comms..................               0               0               0           1,000
COMMON IMAGERY GROUND/SURFACE SYS...............               0               0          20,379               0
MANNED RECONNAISSANCE SYSTEMS...................               0          25,800          21,566          38,366
    U-2 transfers...............................               0          25,800           7,466          26,766
    Fuel conversion.............................               0               0           3,600           3,600
    Glass cockpit...............................               0               0           3,000           3,000
    RAS-1R......................................               0               0           7,500           5,000
DISTRIBUTED COMMON GROUND/SURFACE SYSTEM........               0          14,701               0          21,519
    INTEROPERABILITY, NIMA......................
SPACETRACK (SPACE)..............................          39,532          38,532          42,832          45,832
    HAVE STARE..................................               0          -1,000               0          -1,000
    AEOS activities.............................               0               0           3,300           7,300
    (NOTE: The AEOS activities increase is
     provided for the following: $1,400,000 is
     only for the spectrograph program;
     $1,300,000 is only for AEOS-related
     acquisition and research; and $4,000,000 is
     only for MSSS research and development
     efforts.)..................................
C-5 AIRLIFT SQUADRONS...........................          47,940          47,940          33,736          33,736
    System design and test......................               0               0          -8,415          -8,415
    Preproduction fabrication...................               0               0          -3,209          -3,209
    Software development........................               0               0          -2,580          -2,580
INDUSTRIAL PREPAREDNESS.........................          50,997          50,997          53,997          52,997
    Aerospace metals programs...................               0               0           3,000           2,000
    Wright Technology Network...................               0         [1,000]               0         [1,000]
PRODUCTIVITY, RELIABILITY, AVAILABILITY,
 MAINTAIN.......................................             970             970          14,970          10,470
    Aging Landing Gear Life Extension Program...               0               0           6,000           4,000
    Blade repair facility.......................               0               0           8,000           5,500
----------------------------------------------------------------------------------------------------------------

                            aviation safety

      The Committee understands that the U.S. Air Force is 
working with the Federal Aviation Administration (FAA) to use 
the capabilities at the FAA Airworthiness Assurance Center of 
Excellence and other FAA research resources for projects that 
will enhance the safety of both military and civilian aircraft. 
The Committee encourages increased coordination to maximize 
improvements in safety research and to avoid duplicative 
efforts.

                         airborne laser program

      The conferees have provided $267,219,000, a reduction of 
$25,000,000 to the budget request. The conferees direct that 
the first priority within the available funds shall be to 
conduct a meaningful ground demonstration of the capability to 
produce a high energy beam, compensate the beam for atmospheric 
disturbances, and measure the deposition of laser energy on a 
target under realistic test conditions. The funding level 
recommended by the conferees reduces concurrency in the program 
to enable the lessons learned from the test to be incorporated 
in the program.

              hard and deeply buried target defeat system

      The conferees have provided a total of $6,000,000, with 
$3,000,000 in the RDT&E, Navy account and $3,000,000 in the 
RDT&E, Air Force account. The conferees direct that the 
$6,000,000 shall be available only for completion of a joint 
analysis of alternatives (AOA) as well as planning efforts 
associated with establishing a joint hard and deeply buried 
target defeat program.

                       target SYSTEMS DEVelopment

      The conferees agree with the Senate direction with regard 
to the KC-135 Big Crow report and further direct that the 
report be provided no later than December 31, 1998.

                   tactical air reconnaissance system

      The conferees believe that if the Defense Department 
decides to acquire additional sensors for the AF Tactical Air 
Reconnaissance System (TARS) program, the Department should 
consider the CA 261, the MAEO and other sensors based on best 
value, capability and stated Air Force requirements.

                               warfighter

      The conferees continue to support the Warfighter-1 
program. The conferees are concerned however, that the license 
amendment for commercial operation of the Warfighter-1 sensor 
has still to be adjudicated 13 months after initial 
application. While the conferees recognize the importance of a 
stringent national security review before any commercial remote 
sensing license is granted, the excessive length of the review 
process may jeopardize program milestones and objectives.
      The conferees therefore, strongly encourage the Secretary 
of Defense and the Director of Central Intelligence to take 
immediate steps to resolve remaining license issues and report 
to the Committees on Appropriations no later than November 15, 
1998 on the resolution of all outstanding issues concerning the 
commercial operation of the Warfighter-1 program.

                evolved expendable launch vehicle (eelv)

      The conferees agree to provide $260,297,000 for the 
Evolved Expendable Launch Vehicle Program, a reduction of 
$20,000,000 to the budget request. The conferees also agree to 
House language directing that reports and certifications 
regarding the EELV program be provided to the Committees on 
Appropriations and necessary program information be provided to 
the Comptroller General. The conferees do not agree that the 
obligation of fiscal year 1999 appropriations for the EELV 
program should be restricted pending the receipt of said 
reports and certifications.

             defense satellite communications system (dscs)

      The conferees agree to the House language requiring the 
Air Force to report to the Committees on Appropriations on the 
resolution of difficulties associated with the completion of 
the operational requirements document for the DSCS follow-on 
system. The conferees do not agree that the report needs to be 
provided prior to the release of any draft RFP for the DSCS 
follow-on system.

        Research, Development, Test and Evaluation, Defense-Wide

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
   RESEARCH, DEVELOPMENT, TEST & EVAL, DEFWIDE
UNIVERSITY RESEARCH INITIATIVES.................         216,320         218,400         219,320         229,420
GULF WAR ILLNESS................................          19,646          19,646          19,646          23,796
GOVERNMENT/INDUSTRY COSPONSORSHIP OF UNIVERSITY
 RESEAR.........................................           9,870  ..............           9,870           4,870
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.........          25,282          25,282          30,282          28,782
NEXT GENERATION INTERNET........................          40,000          53,000          30,000          50,000
SUPPORT TECHNOLOGIES--APPLIED RESEARCH..........          86,866          81,866         100,866          97,866
MEDICAL FREE ELECTRON LASER.....................           9,706          17,206          16,706          14,706
COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY.         417,723         390,723         346,323         331,323
BIOLOGICAL WARFARE DEFENSE......................          88,000          88,000          82,500          82,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.........          57,683          57,683          66,683          63,583
TACTICAL TECHNOLOGY.............................         188,995         151,995         192,995         175,395
INTEGRATED COMMAND AND CONTROL TECHNOLOGY.......          34,000          40,000          42,000          40,000
MATERIALS AND ELECTRONICS TECHNOLOGY............         244,408         253,408         271,408         277,908
WMD RELATED TECHNOLOGIES........................         203,598         204,598         221,598         215,598
EXPLOSIVES DEMILITARIZATION TECHNOLOGY..........          11,650          13,650          14,850          14,650
COUNTERTERROR TECHNICAL SUPPORT.................          35,813          35,813          40,813          38,313
COUNTERPROLIFERATION SUPPORT--ADV DEV...........          70,611          55,611          77,611          53,111
SUPPORT TECHNOLOGIES--ADVANCED TECHNOLOGY
 DEVELOPMENT....................................         166,676         193,676         299,676         277,676
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--
 ADVANCED DEV...................................          42,762          55,262          42,762          51,762
VERIFICATION TECHNOLOGY DEMONSTRATION...........          63,052          48,052          63,052          58,052
GENERIC LOGISTICS R&D TECHNOLOGY DEMONSTRATIONS.          17,788          25,388          21,788          23,788
STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM........  ..............          59,419  ..............          59,419
JOINT WARFIGHTING PROGRAM.......................          23,700          23,700          19,100          19,100
COOPERATIVE DOD/VA MEDICAL RESEARCH.............  ..............          11,000  ..............           6,000
ADVANCED ELECTRONICS TECHNOLOGIES...............         244,737         264,537         261,337         264,637
MARITIME TECHNOLOGY.............................          15,000          15,000  ..............  ..............
ELECTRIC VEHICLES...............................  ..............  ..............  ..............           9,000
ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS......         116,330          81,076         110,330          89,830
HIGH PERFORMANCE COMPUTING MODERNIZATION PROGRAM         140,927         120,927         163,927         153,927
COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS.....         200,100         172,600         177,000         181,300
COMMUNICATION AND SIMULATION TECHNOLOGY.........          56,114          56,114          56,114          54,114
SENSOR AND GUIDANCE TECHNOLOGY..................         213,154         203,654         233,054         208,054
LAND WARFARE TECHNOLOGY.........................         108,490          96,890          93,490          92,990
CLASSIFIED DARPA PROGRAMS.......................          55,500          42,000          55,500          51,000
DUAL USE APPLICATION PROGRAMS...................           6,000  ..............           6,000           6,000
JOINT WARGAMING SIMULATION MANAGEMENT OFFICE....          70,696          70,696          61,496          61,496
PHYSICAL SECURITY EQUIPMENT.....................          31,792          31,792          25,792          25,792
ADVANCED SENSOR APPLICATIONS PROGRAM............          15,147          15,147          17,147          18,147
CALS INITIATIVE.................................           1,863          11,363           6,863           7,863
NATO RESEARCH AND DEVELOPMENT...................          10,762  ..............           8,462           5,762
THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD..         497,752         392,752         497,752         445,252
NAVY THEATER WIDE...............................         190,446         340,446         295,446         338,446
MEADS CONCEPTS--DEM/VAL.........................          43,027          43,027          10,027          10,027
BOOST PHASE INTERCEPT THEATER MISSILE DEFENSE
 ACQUISIT.......................................  ..............  ..............          10,000           6,500
JOINT THEATER MISSILE DEFENSE--DEM/VAL..........         176,846         176,846         209,346         207,846
BMD TECHNICAL OPERATIONS........................         190,147         190,147         192,147         191,147
INTERNATIONAL COOPERATIVE PROGRAMS..............          50,676          50,676          62,676          59,676
THREAT AND COUNTERMEASURES......................          22,113          22,113          25,113          24,613
HUMANITARIAN DEMINING...........................          17,234           8,234          19,234          18,734
JOINT ROBOTICS PROGRAM--ENG DEV.................          11,307          11,307          18,307          15,307
COMMERCIAL OPERATIONS AND SUPPORT SAVINGS
 INITIATIVE.....................................          13,410          13,410          13,410           8,000
THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD-
 EMD............................................         323,942          22,942  ..............  ..............
PATRIOT PAC-3 THEATER MISSILE DEFENSE
 ACQUISITION....................................         137,265         177,265         182,265         182,265
JOINT THEATER AIR AND MISSILE DEFENSE
 ORGANIZATION...................................          17,423          17,423          17,423         109,923
CLASSIFIED PROGRAM USD(P).......................  ..............           3,387  ..............           3,387
CLASSIFIED PROGRAMS--C3I........................             439             439           6,439           6,439
DEFENSE TECHNOLOGY ANALYSIS.....................           5,010           5,010           8,010           8,010
DEFENSE TECHNICAL INFORMATION SERVICES (DTIC)...          46,469          46,469          45,469          45,469
INFORMATION SYSTEMS SECURITY PROGRAM............         239,081         239,081         239,081         251,081
DEFENSE IMAGERY AND MAPPING PROGRAM.............         114,417         109,417         114,417         109,417
DISTRIB/IMAGERY COMMON GRD SYS..................  ..............           9,358  ..............           5,080
DISTRIB COMMON GRD SYS..........................  ..............           2,540  ..............  ..............
DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES
 (SPACE)........................................          40,504          30,617          48,504          44,609
AIRBORNE RECONNAISSANCE SYSTEMS.................         162,666  ..............          15,000  ..............
MANNED RECONNAISSANCE SYSTEMS...................          10,840  ..............           5,874  ..............
MANNED RECONNAISSANCE SYSTEMS...................           4,085           4,085           4,085           9,959
DISTRIBUTED COMMON GROUND SYSTEMS...............          34,985  ..............           4,200  ..............
TACTICAL CRYPTOLOGIC ACTIVITIES.................         104,510         201,810         104,510         115,564
PARTNERSHIP FOR PEACE ACTIVITIES................           1,957           5,957           1,957           4,957
SPECIAL OPERATIONS ADVANCED TECHNOLOGY
 DEVELOPMENT....................................           8,020          34,020           8,020          29,020
SPECIAL OPERATIONS TACTICAL SYSTEMS DEVELOPMENT.         106,238         106,238         113,238         107,738
SPECIAL OPERATIONS INTELLIGENCE SYSTEMS
 DEVELOPMENT....................................           1,805          10,805           1,805           8,805
SOF OPERATIONAL ENHANCEMENTS....................          33,799          47,604          33,799          45,599
CLASSIFIED PROGRAMS.............................       1,057,100       1,141,826       1,163,100       1,157,958
ADVISORY AND ASSISTANCE SERVICES................  ..............         -50,000  ..............         -50,000
CIVILIAN PERSONNEL UNDEREXECUTION...............  ..............  ..............  ..............          -7,200
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES.......................          65,102          65,102          65,102          65,102
    Interdisciplinary research in anticorrosion.               0               0         [1,200]         [1,000]
    Research on applications of spectral hole
     burning....................................               0               0         [2,000]         [1,400]
UNIVERSITY RESEARCH INITIATIVES.................         216,320         218,400         219,320         229,420
    Southern observatory for astronomical
     research (SOAR)............................               0               0           3,000           2,200
    Anticorrosion research on aluminum clad
     systems used in aircraft fleets............               0               0         [1,250]         [1,250]
    Defense Experimental Program to Stimulate
     Competitive Research.......................               0          15,000        [20,000]        [20,000]
    Software quality and productivity...........               0               0         [1,300]         [1,300]
    Photoacoustic detection device..............               0           1,800               0           1,200
    Medical ultrasound technology...............               0           1,600               0           1,200
    Program reduction...........................               0         -16,320               0               0
    Military Family Research Institute..........               0         [9,000]               0         [8,000]
    Acoustic sensor technology development
     planning...................................               0               0         [1,000]           1,000
    New Starts..................................               0               0               0           5,500
    Computational neuroscience (Note: $2,000,000
     shall be available only to add a multi-
     disciplinary URI topic area on
     computational neuroscience and vision
     studies for learning and human/machine
     interaction.)..............................               0               0               0           2,000
NEXT GENERATION INTERNET........................          40,000          53,000          30,000          50,000
    Program reduction...........................               0               0         -10,000               0
    Program increase............................               0          13,000               0          10,000
    Partnerships between centers with super
     computers purchased with DOD RDT&E funds
     and DOD MSRCs..............................               0               0               0         [5,000]
SUPPORT TECHNOLOGIES--APPLIED RESEARCH..........          86,866          81,866         100,866          97,866
    Wideband gap semiconductor research.........               0           5,000          14,000          11,000
    Space-based laser...........................               0         -10,000               0               0
COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY.         417,723         390,723         346,323         331,323
    Hand free interface.........................               0               0          -7,500          -7,500
    Joint infrastructure protection.............               0               0         -69,900         -69,900
    Software security research..................               0               0             500             500
    Asset source for software engineering
     technology [ASSET].........................               0               0           2,500           2,500
    Reuse technology adoption program...........               0               0           3,000           2,000
    Multi-spectral imaging......................               0           5,000               0           2,000
    Computer security...........................               0           2,000               0           1,000
    Networking..................................               0         -34,000               0         -20,000
    Applied Software Engineering (Note:
     $3,000,000 is only for the National Applied
     Software Engineering Center to perform a
     Microelectronics and Very Large-Scale
     Integration (VSLI) software initiative to
     demonstrate the integration of artificial
     intelligence software technologies with
     VLSI microelectronics circuits.)...........               0               0               0           3,000
BIOLOGICAL WARFARE DEFENSE......................          88,000          88,000          82,500          82,000
    Program reduction...........................               0               0          -7,000          -7,000
    Biological warfare multimedia demonstration.               0               0           1,500           1,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.........          57,683          57,683          66,683          63,583
    Chemical and biological detection sensor....               0               0           5,000           3,500
    Safeguard...................................               0               0           4,000           2,400
TACTICAL TECHNOLOGY.............................         188,995         151,995         192,995         175,395
    Center of excellence for research in ocean
     sciences [CEROS]...........................               0               0           7,000           7,000
    Simulation-based design.....................               0           2,000           5,000           2,000
    Microadaptive flow control..................               0               0          -3,000          -3,000
    Counterartillery force protection...........               0               0          -5,000          -5,000
    High performance algorithm development......               0          -5,600               0          -5,600
    Advanced fire support system................               0          -8,000               0          -4,000
    Program reduction...........................               0         -25,400               0          -5,000
MATERIALS AND ELECTRONICS TECHNOLOGY............         244,408         253,408         271,408         277,908
    Multitechnology integration in mixed-mode
     electronics [MIME].........................               0               0           8,000           5,000
    3-D diamond electronics.....................               0               0           9,000           5,500
    Seamless high off chip connectivity [SHOCC].               0               0           8,000           5,000
    Cryogenic/superconducting electronics.......               0               0           8,000           5,000
    Electromagnetic pulse [EMP].................               0               0           2,000               0
    Sonoelectronics.............................               0               0          -8,000          -8,000
    MEMS deep silicon etching process technology               0           7,500               0           7,000
    Nanophase magnetic particle (advanced
     materials research institute)..............               0           4,000               0           7,000
    Polymer materials and processing............               0           5,000               0           4,000
    Strategic Materials Manufacturing...........               0               0         [2,000]         [2,000]
    Laser diode array alignment (Note:
     $3,000,000 is only for the development of
     automated laser diode bar mounting
     techniques.)...............................               0               0               0           3,000
WMD RELATED TECHNOLOGIES........................         203,598         204,598         221,598         215,598
    Nuclear weapons effects technology..........               0               0          10,000           7,000
    Thermionics.................................               0               0           5,000           3,000
    Deep digger.................................               0               0           3,000           2,000
    Facial recognition technology...............               0           1,000               0               0
EXPLOSIVES DEMILITARIZATION TECHNOLOGY..........          11,650          13,650          14,850          14,650
    Program increase............................               0           2,000           2,000           2,000
    Demilitarization advanced cutting technology               0               0           1,200           1,000
COUNTERTERROR TECHNICAL SUPPORT.................          35,813          35,813          40,813          38,313
    Facial recognition technology...............               0               0           4,000           2,500
    Pulsed fast neutron analysis................               0               0           1,000               0
    Transfer....................................               0         -25,000               0               0
COUNTERPROLIFERATION SUPPORT--ADV DEV...........          70,611          55,611          77,611          53,111
    HAARP.......................................               0               0           3,000           1,500
    Counterproliferation analysis planning
     system [CAPS]..............................               0          10,000           4,000           6,000
    Transfer (special reconnaissance
     capabilities)..............................               0         -25,000               0         -25,000
SUPPORT TECHNOLOGIES--ADVANCED TECHN.
 DEVELOPMENT....................................         166,676         193,676         299,676         277,676
    Scorpius space launch tech..................               0           5,000           5,000           4,000
    Excalibur space launch tech.................               0               0           5,000           4,000
    Space-based laser demonstrator..............               0               0          94,000          74,000
    Atmospheric interceptor technology..........               0          22,000          22,000          22,000
    Photoconduction on active pixel sensors.....               0               0           5,000           5,000
    Silicon thick film mirror coatings..........               0               0           2,000           2,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--
 ADVANCED DEV...................................          42,762          55,262          42,762          51,762
    Biocide-based protective ensembles..........               0           2,500               0           1,500
    Exposure to low levels of chemical agents
     and sub-chronic exposures..................               0          10,000               0           7,500
VERIFICATION TECHNOLOGY DEMONSTRATION...........          63,052          48,052          63,052          58,052
    Program reduction...........................               0         -25,000               0         -15,000
    Nuclear detection, analysis and forensics
     systems (Note: $5,000,000 is only for
     continuation of the industry based program
     and $5,000,000 is only for accelerated
     development of nuclear detection systems.).               0          10,000               0          10,000
    Peer reviewed basic and applied research to
     support nuclear testing (Note: Of the
     $8,500,000, $7,300,000 shall be available
     only for basic peer-reviewed explosion
     seismology research; and $1,200,000 shall
     be available only for applied peer-reviewed
     explosion seismology research. The
     conferees direct that the applied seismic
     research program address the specific
     prioritized research topics recommended to
     the Department by the National Research
     Council.)..................................               0        [12,000]               0         [8,500]
STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM........               0          59,419               0          59,419
    Transfer from RDTE,A........................               0          54,419               0          54,419
    Environmental workers safety................               0           2,000               0           2,000
    Risk-based approach to research effects of
     toxic chemicals............................               0           3,000               0           3,000
ADVANCED ELECTRONICS TECHNOLOGIES...............         244,737         264,537         261,337         264,637
    X-ray masks for F-22, Apache Longbow........               0               0          10,000           7,000
    Advanced lithography........................               0               0          10,000           7,000
    Defense techlink center.....................               0               0           1,000           1,000
    Center for advanced microstructures and
     devices....................................               0         [4,000]           4,000           4,000
    Molecular level printing program
     acceleration...............................               0               0          -3,300          -3,300
    Submarine sensor suite development..........               0               0          -5,100          -5,100
    Cryogenic electronics.......................               0           9,500               0               0
    Laser plasma x-ray source technology........               0           7,000               0           6,000
    Nanotechnology and crystalline control
     arrays.....................................               0           3,300               0           3,300
HIGH PERFORMANCE COMPUTING MODERNIZATION PROGRAM         140,927         120,927         163,927         153,927
    Operation and upgrade of supercomputing
     centers, purchased with RDT&E funds........               0               0          20,000          20,000
    High performance visualization center.......               0               0           3,000           3,000
    Program reduction...........................               0         -20,000               0         -10,000
COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS.....         200,100         172,600         177,000         181,300
    Dynamic data bases program..................               0               0          -5,000          -5,000
    Joint forward air component commander
     [JFACC] acceleration.......................               0               0          -5,800          -5,800
    Dynamic multiuser information fusion [DMIF].               0               0          -8,000          -8,000
    JSIMS program reduction.....................               0               0          -4,300               0
    Program reduction...........................               0         -27,500               0               0
SENSOR AND GUIDANCE TECHNOLOGY..................         213,154         203,654         233,054         208,054
    Enhanced global positioning receiver (GPX)..               0               0          -5,600          -5,600
    Low cost cruise missile defense airframe
     design and integration.....................               0               0          -7,500          -7,500
    Air directed surface-to-air missile
     demonstration (ADSAM)......................               0               0          30,000               0
    Large millimeter telescope..................               0               0           3,000           1,500
    GPS Guidance Package........................               0           6,500               0           6,500
    GEOSAR (transfer to Army)...................               0          11,000               0               0
    Tactical Radar/Discoverer II................               0         -27,000               0               0
LAND WARFARE TECHNOLOGY.........................         108,490          96,890          93,490          92,990
    Reconnaissance, surveillance, and targeting
     vehicle....................................               0               0          -9,000          -4,500
    Tactical mobile robots acceleration.........               0               0          -3,000          -3,000
    Situational awareness system program growth.               0               0          -3,000          -8,000
    Program reduction...........................               0         -11,600               0               0
CLASSIFIED DARPA PROGRAMS.......................          55,500          42,000          55,200          51,000
    Program reduction--UCAV.....................               0         -13,500               0          -4,500
PHYSICAL SECURITY EQUIPMENT.....................          31,792          31,792          25,792          25,792
    Analytic system software for safeguards and
     security...................................               0               0         [3,000]         [3,000]
    Program reduction...........................               0               0          -6,000          -6,000
ADVANCED SENSOR APPLICATIONS PROGRAM............          15,147          15,147          17,147          18,147
    HAARP.......................................               0               0           2,000           2,000
    Stochastic Resonance Technology.............               0               0               0           1,000
CALS INITIATIVE.................................           1,863          11,363           6,863           7,863
    IDE/continuous acquisition and life-cycle
     support....................................               0           4,000           5,000           4,000
    Commodity management........................               0           3,000               0               0
    Paperless contracting.......................               0           2,500               0           2,000
THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD..         497,752         392,752         497,752         445,252
    User operational evaluation system (40
     missiles, spares)..........................               0               0        -180,000               0
    Demonstration/validation....................               0               0         180,000          52,500
    User operational evaluation system (40
     missiles)..................................               0        -105,000               0        -105,000
NAVY THEATER WIDE...............................         190,446         340,446         295,446         338,446
    Program increase............................               0         150,000          70,000         120,000
    Radar improvements competition..............               0               0          35,000          28,000
MEADS CONCEPTS--DEM/VAL.........................          43,027          43,027          10,027          10,027
    Program termination.........................               0               0         -43,027         -43,027
    Air directed surface-to-air missile
     demonstration (ADSAM)......................               0               0          10,027          10,027
JOINT THEATER MISSILE DEFENSE--DEM/VAL..........         176,846         176,846         209,346         207,846
    Extended air defense testbed................               0               0           7,500           6,000
    Pacific Missile Range Facility TMD upgrades.               0               0          20,000          20,000
    Optical-electro sensors.....................               0               0           5,000           5,000
    Kauai test facility.........................               0               0         [5,000]         [5,000]
FAMILY-OF-SYSTEMS ENGINEERING AND INTEGRATION...          96,915          96,915          96,915          96,915
    Air directed surface-to-air missile
     demonstration (ADSAM)......................               0               0        [10,000]        [10,000]
BMD TECHNICAL OPERATIONS........................         190,147         190,147         192,147         191,147
    Advanced research center....................               0               0           7,000           6,000
    Program reduction...........................               0               0          -5,000          -5,000
HUMANITARIAN DEMINING...........................          17,234           8,234          19,234          18,734
    Acoustic technologies.......................               0               0           [800]           [800]
    Humanitarian demining.......................               0               0           2,000           1,500
    Program reduction...........................               0          -9,000               0               0
JOINT ROBOTICS PROGRAM--ENG DEV.................          11,307          11,307          18,307          15,307
    Joint robotics technology...................               0               0           6,000           3,000
    Robotic combat support system [RCSS] with
     flailhead for demining.....................               0               0           1,000           1,000
PATRIOT PAC-3 THEATER MISSILE DEFENSE
 ACQUISITION....................................         137,265         177,265         182,265         182,265
    Transfer of funds...........................               0          40,000          40,000          40,000
    PAC-3 air directed surface-to-air missile
     testing....................................               0               0           5,000           5,000
JOINT THEATER AIR AND MISSILE DEFENSE
 ORGANIZATION...................................          17,423          17,423          17,423         109,923
    ADSAM Demonstration.........................               0               0               0          92,500
INFORMATION SYSTEMS SECURITY PROGRAM............         239,081         239,081         239,081         251,081
    High security computational structure
     project....................................               0               0           [500]           [500]
    Protection of vital data....................               0               0               0          12,000
DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES
 (SPACE)........................................          40,504          30,617          48,504          44,609
    IBS Transfer................................               0          -9,887               0          -3,895
    Pacific disaster center.....................               0               0           8,000           8,000
MANNED RECONNAISSANCE SYSTEMS...................           4,085           4,085           4,085           9,959
    U-2 transfer................................               0               0               0           5,874
TACTICAL CRYPTOLOGIC ACTIVITIES.................         104,510         201,810         104,510         115,564
    Adv Sensors transfer........................               0               0               0           6,359
    Adv Technology (NSA)........................               0               0               0           8,641
    DCP program decrease........................               0               0               0          -3,946
PARTNERSHIP FOR PEACE ACTIVITIES................           1,957           5,957           1,957           4,957
    International medical programs global
     satellite surveillance system..............               0           4,000               0           3,000
SPECIAL OPERATIONS ADVANCED TECHNOLOGY
 DEVELOPMENT....................................           8,020          34,020           8,020          29,020
    Advanced lightweight grenade launcher.......               0           1,000               0           1,000
    Special reconnaissance capabilities program.               0          25,000               0          20,000
SPECIAL OPERATIONS TACTICAL SYSTEMS DEVELOPMENT.         106,238         106,238         113,238         107,738
    Special operations intelligence vehicle.....               0               0           5,000               0
    Light vehicle intercom system...............               0               0           2,000           1,500
SPECIAL OPERATIONS INTELLIGENCE SYSTEMS
 DEVELOPMENT....................................           1,805          10,805           1,805           8,805
    Joint threat warning system.................               0           4,000               0           2,000
    Special operations intelligence vehicle.....               0           5,000               0           5,000
SOF OPERATIONAL ENHANCEMENTS....................          33,799          47,604          33,799          45,599
    Advanced special warfare craft/vsv..........               0           6,000               0           6,000
    Classified program..........................               0           7,805               0           5,800
----------------------------------------------------------------------------------------------------------------

                            missile defense

      The conferees are concerned by recent evidence that the 
theater ballistic missile threat is emerging more rapidly and 
in a more sophisticated form than previously projected. 
Further, the recent ballistic missile launch by North Korea 
clearly demonstrates that longer range missiles, even 
intercontinental class, could soon be within the reach of our 
adversaries. Thus, world events continue to clearly validate 
the Defense Department requirement for national missile 
defenses as well as a mix of upper and lower tier TMD systems 
to defend U.S. interests and forward-deployed forces.
      Testimony this year by the Chief of Naval Operations, 
Army Chief of Staff, and Director of the Ballistic Missile 
Defense Organization established that the department's two 
upper tier systems, THAAD and Navy Theater Wide, are 
complements, not substitutes, for each other. The conferees are 
concerned by the THAAD program's failure to achieve an 
intercept in five attempts. However, believing that additional 
testing is the appropriate course of action, the conferees have 
provided $445,252,000 to continue the THAAD Demonstration and 
Validation flight test program during fiscal year 1999.
      The Navy Theater Wide program offers the capability to 
defend a large area against the medium and longer range 
ballistic missiles our adversaries are seeking to acquire. The 
deployability of Navy Theater Wide systems will allow this 
nation to respond to the theater ballistic missile threat 
whenever and wherever required. The conferees have dedicated 
$338,446,000 to Navy Theater Wide development and strongly urge 
the Department of Defense to proceed aggressively with 
development and adequate testing.
      The conferees have also provided $950,473,000 for the 
development of a national missile defense system. The conferees 
are pleased that this program is now poised to make critical 
progress given the recent NMD contract award. The conferees 
view NMD as a national priority and place full responsibility 
on the Department of Defense to prudently and aggressively 
complete the technical work and testing necessary for an 
effective national missile defense system which can provide 
protection for all 50 states.
      The conferees also recognize the Airborne Laser as a high 
priority and promising program for our nation's defense. The 
program is proceeding on budget and schedule, and the conferees 
look forward to the results of ground demonstrations which will 
provide confidence in the capability of the ABL design.

              information systems security program (issp)

      The conferees have agreed to provide a total of 
$251,081,000 for the Information Systems Security Program 
(ISSP); $12,000,000 over the amount proposed by both the House 
and the Senate. In its recommendation, the House included a 
$15,000,000 increase in a different program element and 
directed that the funding be transferred to the ISSP. The 
conference agreement reduces the recommended increase to 
$12,000,000 and funds the program in the correct program 
element, which eliminates the need for a transfer of funds. The 
additional $12,000,000 is for a new program to establish a 
clearinghouse for information related to the protection of 
vital systems data as addressed in the classified annex 
accompanying the House-passed fiscal year 1999 Department of 
Defense Appropriations bill.

                 support technologies--applied research

      The conferees urge the Department of Defense to give 
strong consideration to the potential benefits, both military 
and civilian offered by the EXCEL Stem Cell process. Providing 
funding for the EXCEL program in fiscal year 1999 would ready 
technology for clinical trials and provide the nation with a 
new and aggressive treatment for individuals exposed to weapons 
of mass destruction.

                            GULF WAR ILLNESS

      The conferees have provided $23,796,000 for Gulf War 
Illness research, an increase over the budget of $4,150,000. 
The conferees agree that within this increase, $3,000,000 may 
be provided for research into Gulf War Syndrome that includes 
multi-disciplinary studies of fibromyalgia, chronic fatigue 
syndrome, multiple chemical sensitivity and the use of research 
methods of cognitive and computational neuroscience.

                   nuclear effects testing capability

      The conferees are concerned that insufficient resources 
and attention are being paid to ensure the continued 
survivability of weapon platforms and supporting C3I systems 
from the effects of a nuclear explosion, particularly in light 
of India and Pakistan's recent nuclear testing. With the 
termination of underground nuclear testing and the emerging 
nuclear capability of rogue states, there is an urgent national 
security requirement for continued above ground qualification 
and verification testing of new and upgraded military 
components and subsystems. The conferees agree that the current 
industry-based Defense Threat Reduction Agency X-ray simulator 
program should have increased funding for timely development of 
affordable pulsed power based x-ray test capabilities that were 
lost with the cessation of underground nuclear tests and 
encourage the Department to fund this program at adequate 
levels in future budgets.

               Developmental Test and Evaluation, Defense

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DEVELOPMENTAL TEST & EVAL. DEFENSE:
    CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT......      122,169      134,669      122,169      131,669
    DEVELOPMENT TEST AND EVALUATION.........................       96,253       96,253       94,253       94,253
----------------------------------------------------------------------------------------------------------------

                Explanation of Project Level Adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT..........      122,169      134,669      122,169      131,669
    Airborne separation video system........................            0        9,500            0        8,000
    Roadway simulator.......................................            0        3,000            0        1,500
----------------------------------------------------------------------------------------------------------------

                Operational Test and Evalaution, Defense

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
OPERATIONAL TEST & EVALUATION, DEFENSE:
    LIVE FIRE TESTING.......................................        9,934       19,934        9,934       18,934
----------------------------------------------------------------------------------------------------------------

                Explanation of Project Level Adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
LIVE FIRE TESTING...........................................        9,934       19,934        9,934       18,934
    Vulnerability assessments...............................            0        4,000            0        4,000
    Modeling and simulation.................................            0        6,000            0        5,000
----------------------------------------------------------------------------------------------------------------

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Defense Working Capital Funds...............................       94,500       94,500       94,500       94,500
National Defense Sealift Fund...............................      418,166      673,366      669,566      703,366
                                                             ---------------------------------------------------
    Total, Revolving and Management Funds...................      512,666      767,866      764,066      797,866
----------------------------------------------------------------------------------------------------------------

                     Defense Working Capital Funds

      The conferees agree to provide $94,500,000 for the 
Defense Working Capital Fund.

                           commissary funding

      In view of the Department of Defense decision to move the 
appropriations requested in support of commissary operations 
back into the Military Services' operation and maintenance 
accounts, the conferees expect to see a significant adjustment 
in the fiscal year 2000 budget request for the Defense 
Commissary Agency (DeCA) headquarters. The conferees direct the 
Department of Defense to report to the congressional defense 
committees on the adjusted responsibilities and purposes of the 
DeCA headquarters organization in light of this devolvement, no 
later than December 1, 1998.

                     National Defense Sealift Fund

      The conferees agree to provide $708,366,000, an increase 
of $290,200,000 to the budget request. The increase consists of 
$251,400,000 for a Large Medium Speed Roll-on/Roll-off (LMSR) 
ship, $28,800,000 to be transferred as specified in the House 
bill, and $10,000,000 only for Marine Corps' maritime 
prepositioning ship research and development.
      In fiscal year 1997, the Congress provided $250,000,000 
above the budget as an initiative to enhance the capabilities 
of the Maritime Prepositioning Force through procurement of two 
ships. The Congress recognized that these ships could not only 
significantly enhance the capability of the Marine Corps during 
combat operations but also provide a strategic national asset. 
In order to expedite fielding of the ships, the Marine Corps 
chose to convert used commercial ships rather than build new 
ones. The conferees recently discovered that, as was the case 
in conversion of used commercial ships for Army strategic 
sealift, the second and third MPF-E ship conversions have 
suffered significant cost and schedule difficulties. The 
conferees understand that the Navy issued a solicitation for 
the third MPF-E ship, but subsequently cancelled it after 
issues arose on the second ship. The conferees further 
understand that the Marine Corps must now divert a substantial 
amount of funds from the third ship to finance increased costs 
on the second ship in order to make it viable. Given the 
unfortunate recent events in this program, the conferees have 
rescinded $65,000,000 from the fiscal year 1997 funds for the 
third MPF-E ship and direct the Department of the Navy to use 
the remaining funds for the first two ships in order to keep 
their fielding on track. Since the third ship is no longer 
viable, the conferees agree to provide $10,000,000 only for 
maritime prepositioning ship research and development to begin 
work on design of a new-construction ship to meet MPF-2010 
requirements. The conferees suggest that the CVN-77 
``transition-ship'' model, to bridge from the capabilities of 
current MPF sealift ships to the objective future 
configuration, should be considered. The conferees direct the 
Secretary of Defense to develop and budget for a new-
construction maritime prepositioning ship program and to report 
by February 1, 1999 to the congressional defense committees on 
how technical issues in the MPF-E conversion program will be 
resolved and the new-construction program implemented.
      The conferees also agree to rescind funding appropriated 
in fiscal year 1996 for the National Defense Features (NDF) 
program by $20,000,000 because of serious funding shortages. 
The conferees continue to believe that the NDF program would 
provide great benefits to the defense sealift capabilities of 
the nation. Therefore, the conferees direct that the remaining 
$20,000,000 funding be available only for the NDF program and 
that no funds may be reprogrammed from this program without the 
approval of the Committees on Appropriations.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

      The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Defense Health..................................      10,055,822      10,127,622      10,337,322      10,149,872
Chemical Agents and Munitions Destruction, Army.         855,100         796,100         780,150         780,150
Drug Interdiction and Counter-Drug Activities,
 Defense........................................         727,582         764,595         742,582         735,582
Office of the Inspector General.................         132,064         132,064         132,064         132,064
                                                 ---------------------------------------------------------------
    Total, Other Department of Defense Programs.      11,770,568      11,820,381      11,992,118      11,797,668
----------------------------------------------------------------------------------------------------------------

                         Defense Health Program

                explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Epidermolysis Bullosa........................               0           1,000                0            1,000
Lyme Disease.................................               0               0           (3,000)          (3,000)
Brain Injury.................................               0           1,500                0            1,500
Breast Cancer................................               0          25,000                0          (25,000)
Molecular Genetics...........................               0           4,000                0            3,000
Nervous System Studies.......................               0           5,000                0            4,000
Ovarian Cancer...............................               0          10,000                0           10,000
Personal Identification Carrier..............               0           7,300                0            5,000
Post Polio...................................               0           1,000                0            1,000
POW Studies..................................               0           1,000                0              750
Prostate Cancer Research.....................               0          10,000                0                0
Non-invasive Prostate/Coronary Reversal......               0          (2,500)               0           (2,500)
Proton Beam..................................               0           6,000                0            4,000
Air Force Research Laboratory................               0               0          (11,000)         (11,000)
Alaska Federal Healthcare Partnership........               0               0            1,900            1,900
Brown Tree Snakes............................               0               0            1,000            1,000
Cancer Control Program.......................               0               0            5,600            5,600
Center for Disaster Management...............               0               0             (760)            (760)
Disaster Management Training.................               0               0            5,000            5,000
Graduate School of Nursing...................               0               0            2,300            2,300
Military Health Services Information
 Management..................................               0               0           10,000            8,500
Military Nursing Programs....................               0               0            5,000            5,000
Pacific Island Health Care...................               0               0            5,000            5,000
PACMEDNET....................................               0               0           10,000           10,000
Uniformed Services University of Health
 Sciences....................................               0               0           (8,310)          (8,310)
Medical Research and Development.............               0               0          250,000           19,500
USTF reduction...............................               0               0          -14,300                0
----------------------------------------------------------------------------------------------------------------

                               pacmednet

      The conferees have provided $10,000,000 to continue this 
activity, including implementation of automated clinical 
practice guidelines and outcome management on an individual, as 
well as a population, basis.

                      medical research activities

      Within the Defense Health Program, the conferees provide 
an additional $19,500,000 for medical research activities 
conducted by the Department. The funds are to be used for 
research that focuses on issues pertinent to our military 
forces.
      Such efforts would include: alcoholism research; sleep 
management; chemical weapons treatment; disease management; 
healthcare information protection; lung research; laser eye 
injury/eye cancer research and treatment; mustard gas anecdote; 
prostate diagnostic imaging; retinal display technology for 
cardiovascular research; smoking cessation; neurological 
examination equipment; digital mammography; Paget's disease; 
and pediatric asthma. The conferees direct the Deputy Secretary 
of Defense to work with the Surgeons General of the Services to 
establish a medical research program that satisfies military 
objectives in this area.

                 ablatable disc laser vision correction

      The conferees are aware of the successful clinical trials 
involving laser vision correction technology and believe this 
could have the potential to enhance the combat effectiveness, 
especially in critical night operations, for nearsighted 
military personnel. The conferees therefore encourage the 
Department to determine the cost-effectiveness, utility and 
desirability of ablatable disc laser vision correction 
technology for military personnel.

                           smoking cessation

      The conferees agree that not later than 60 days after 
enactment, effective tobacco cessation products and counseling 
may be provided for members of the Armed Forces (including 
retired members), former members of the Armed Forces entitled 
to retired or retainer pay and dependents of such members and 
former members who are identified as likely to benefit from 
such assistance in a manner that does not impose costs on the 
individual.

                       chronic disease management

      The conferees strongly request that the Department 
conduct a study of chronic disease management and the provision 
of comprehensive care for chronically ill patients outside the 
hospital emergency room. The conferees believe that such a 
study may result in a reduction in the number of emergency room 
visits for chronically ill patients and therefore has the 
potential to provide savings and a better quality of life.

                          dental care policies

      The conferees direct the Secretary of Defense to prepare 
and submit a report regarding the policies, practices and 
experience of the uniformed services pertaining to the 
provision of dental care to dependents, 18 years of age and 
younger, of active duty members of the uniformed services to 
the defense congressional oversight committees not later than 
March 15, 1999.

                         improving patient care

      The conferees are encouraged by Department of Defense 
efforts to reengineer medical care in accordance with Program 
Decision Memorandum (PDM) number 1, directed by the Under 
Secretary of Defense for Personnel and Readiness, the Director 
of Program Analysis and Evaluation and the Surgeons General. 
This initiative should improve inpatient and out-patient care 
in several major urban centers and provide for greater 
efficiency in the Military Health System. The conferees 
strongly urge the Department to continue such reengineering 
efforts and direct the Department to provide a report to the 
congressional defense committees on subsequent initiatives to 
accomplish these goals by February 15, 1999.

                            gallo institute

      The conferees strongly support the comprehensive efforts 
of the Cancer Institute of New Jersey and commend the work of 
the Gallo Institute to address prostate cancer.

            Chemical Agents and Munitions Destruction, Army

      The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY:
    CHEM DEMILITARIZATION--O&M.................      531,650      508,650      491,700  ...........      491,700
    CHEM DEMILITARIZATION--PROC................      140,670      124,670      115,670  ...........      115,670
    CHEM DEMILITARIZATION--RDTE................      182,780      162,780      172,780  ...........      172,780
----------------------------------------------------------------------------------------------------------------

         Drug Interdiction and Counter-Drug Activities, Defense

      The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Educate America's youth.........................          12,830          13,730          12,830          13,730
    Young Marines...............................             500           1,400             500           1,400
Increase safety of Citizens.....................          86,669         112,069         106,669         121,869
    Indiana HIDTA...............................               0             500               0           1,000
    Gulf States Counter-drug Initiative C31.....           1,147          10,147           8,147          10,147
    Gulf States Counter-drug Initiative RCTA....           2,209           3,209               0           3,809
    Multi-Jurisdictional Counter-drug Task Force           2,007           6,207               0           6,207
    C-26 Aircraft Photo Reconnaissance Upgrade..               0           5,500               0           5,000
    Marijuana Eradication/Guard Counter-drug
     Activities.................................               0           5,200           6,000           7,400
        Kentucky................................               0           5,200           3,800           5,200
        Hawaii..................................               0               0           2,200           2,200
    Northeast Counterdrug Training Center.......               0               0           2,000           2,000
    Counternarcotics Center at Hammer, WA.......               0               0           5,000           5,000
Reduce health and social costs..................          72,936          72,936          72,936          72,936
Shield America's frontiers......................         301,334         325,334         329,334         306,334
    National Guard Cargo/Mail Inspection........          29,000               0          29,000               0
    National Guard General Support..............         118,620         158,620         138,620         147,620
    Southwest Border Fence......................               0           5,000               0           3,000
    Caribbean/eastern Pacific Surface
     Interdiction...............................           8,500          12,500          16,500           8,500
    Southwest Border Information Systems........               0           4,000               0           2,000
Break drug sources of supply....................         253,813         240,526         220,813         220,713
    Southern Air Forces Counter-drug Support....          26,416           7,416          26,416          22,416
    Joint Interagency Task Force South..........          23,063           7,663           6,063           6,063
    Operation Caper Focus.......................               0          10,500               0               0
    Civil Air Patrol............................           1,187           3,800           1,187           1,187
    SOUTHCOM Observation/Spray Aircraft.........               0           8,000               0               0
    Ground-based End Game--SOUTHCOM.............          27,660          27,660          17,660          23,660
    Ground-based End Game--Mexico...............          16,000          16,000          10,000           7,900
                                                 ---------------------------------------------------------------
      Total.....................................         727,582         764,595         742,582         735,582
----------------------------------------------------------------------------------------------------------------

                   caribbean counter-drug enhancement

      The conferees direct that up to $8,500,000 may be made 
available to support restoration of enhanced counter-narcotics 
operations around the island of Hispaniola, for procurement of 
2 Schweizer observation/spray aircraft, and for upgrades for 3 
UH-1N helicopters for Colombia.

                    Office of the Inspector General

      The conferees agree to provide $132,064,000 for the 
Office of the Inspector General. Of this amount, $130,764,000 
shall be for operation and maintenance activities and 
$1,300,000 shall be for procurement.

                      TITLE VII--RELATED AGENCIES

      The conferees agree to the following amounts for Related 
Agencies:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Intelligence Community Management Account.......         138,623         136,123         134,623         129,123
Central Intelligence Agency Retirement and
 Disability System Fund.........................         201,500         201,500         201,500         201,500
Payment to Kaho'olawe Island Conveyance,
 Remediation, and Environmental Restoration
 Trust Fund.....................................          15,000          15,000          25,000          25,000
National Security Education Trust Fund..........           5,000           3,000           3,000           3,000
----------------------------------------------------------------------------------------------------------------

               intelligence community management account

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

                     TITLE VIII--GENERAL PROVISIONS

      The conference agreement incorporates general provisions 
of the House and Senate versions of the bill which were not 
amended. Those general provisions that were amended in 
conference follow:
      The conferees included a general provision (Section 8005) 
which amends language concerning transfer authority.
      The conferees included a general provision (Section 8014) 
which amends language requiring the Department of Defense to 
report to the Congress on contracting out Department of Defense 
functions performed by ten or more Department of Defense 
personnel.
      The conferees included a general provision (Section 8033) 
which amends House language to earmark funds for the Civil Air 
Patrol.
      The conferees included a general provision (Section 8034) 
governing the activities of defense federally funded research 
and development centers (FFRDCs).
      The conferees included a general provision (Section 8056) 
which amends Senate language authorizing intelligence 
activities.
      The conferees included a general provision (Section 8058) 
which amends language recommending rescissions. The rescissions 
are:
                                                              Conference
Fiscal year 1988:
    Shipbuilding and Conversion, Navy: Excess funds.....    -$19,431,327
Fiscal year 1989:
    Shipbuilding and Conversion, Navy: Excess funds.....     -17,407,490
Fiscal year 1990:
    Shipbuilding and Conversion, Navy: Excess funds.....     -18,974,163
Fiscal year 1991:
    Shipbuilding and Conversion, Navy: Excess funds.....      -1,819,438
Fiscal year 1992:
    Shipbuilding and Conversion, Navy: Excess funds.....      -3,307,524
Fiscal year 1993:
    Shipbuilding and Conversion, Navy: Excess funds.....      -4,540,746
Fiscal year 1997:
    Research, Development, Test and Evaluation, Defense-
      wide: THAAD.......................................     -67,000,000
    Missile Procurement, Air Force: Classified program..      -8,000,000
Fiscal year 1998:
    Missile Procurement, Army: EFOGM....................     -12,800,000
    Procurement of Weapons and Tracked Combat Vehicles, 
      Army: MIAID.......................................      -6,700,000
    Other Procurement, Army: NATO AGS...................     -24,000,000
    Shipbuilding and Conversion, Navy: CVN Refueling....     -35,000,000
    Weapons Procurement, Navy: MA-31 target delay.......      -2,000,000
    Other Procurement, Navy:
        NULKA decoy delay...............................     -15,000,000
        WLQ-4 cancelled requirements....................      -1,500,000
        Type 8B Mod 3 periscopes, cancelled requirement.      -3,000,000
        Other Navigation Equipment, contract savings....      -1,700,000
        Pollution Control Equipment, decommissioned 
          ships.........................................      -3,600,000
        Other training equipment, BFTT contract savings.      -1,400,000
        AN/SQQ-62 sonobouy, contract savings............      -2,300,000
                    --------------------------------------------------------
                    ____________________________________________________
          Subtotal......................................     -28,500,000
                    ========================================================
                    ____________________________________________________
    Procurement of Ammunition, Navy and Marine Corps: 
      JDAM..............................................     -12,560,000
    Aircraft Procurement, Air Force: F-15 Advance 
      Procurement.......................................      -8,934,000
    Missile Procurement, Air Force: Classified program..      -4,200,000
    Procurement of Ammunition, Air Force: JDAM..........     -14,106,000
    Other Procurement, Air Force: Classified program....      -3,508,000
    Research, Development, Test and Evaluation, Navy:
        NATO R&D, Vector................................      -3,000,000
        Navigation/ID systems...........................      -1,000,000
        Lightweight torpedo, contract savings...........      -1,500,000
        High Power Discriminator........................     -15,000,000
                    --------------------------------------------------------
                    ____________________________________________________
          Subtotal......................................     -20,500,000
                    ========================================================
                    ____________________________________________________
    Research, Development, Test and Evaluation, Air 
      Force:
        Terminated AAIS program.........................      -3,200,000
        NATO JSTARS.....................................      -7,000,000
        Classified program..............................      -7,420,000
                    --------------------------------------------------------
                    ____________________________________________________
          Subtotal......................................     -17,620,000
                    ========================================================
                    ____________________________________________________
    National Defense Sealift Fund:
        Defense features................................     -20,000,000
        MPF-E third ship program delay..................     -65,000,000
                    ========================================================
                    ____________________________________________________

      The conferees included a general provision (Section 8080) 
which amends House language making funds available for Reserve 
peacetime support to active duty and civilian activities.
      The conferees included a general provision (Section 8083) 
which amends a Senate provision transferring funds to cover 
unanticipated shipbuilding cost increases.
      The conferees included a general provision (Section 8090) 
which amends House language regarding the use of refunds from 
Government travel cards.
      The conferees included a general provision (Section 8095) 
which amends a Senate provision requiring the Department of 
Defense to identify costs incurred by the Department of Defense 
to support the North Atlantic Treaty Organization.
      The conferees included a general provision (Section 8099) 
which amends Senate language concerning reciprocal trade 
agreements and the condition under which the Secretary of 
Defense may issue waivers to the Buy America Act.
      The conferees included a general provision (Section 8101) 
to provide permanent clarification of the application of the 
``Brooks Act'' qualifications based selection (QBS) process to 
surveying, mapping, charting and geodesy contracts of the 
National Imagery and Mapping Agency (NIMA). The conferees 
expect the officials responsible for the Federal Acquisition 
Regulations (FAR) to strike and revise the last sentence of 
section 36.601-4(a)(4) of the FAR (48 CFR 36.601-4(a)(4)) to 
define ``Surveying and mapping'' in such a manner as to include 
contracts and subcontracts for services for Federal agencies 
for collecting, storing, retrieving, or disseminating graphical 
or digital data depicting natural or man made physical 
features, phenomena and boundaries of the earth and any 
information related thereto, including but not limited to 
surveys, maps, charts, remote sensing data and images and 
aerial photographic services.
      The conferees have included a general provision (Section 
8105) which amends Senate language reducing funds available to 
the Department of Defense by $70,000,000 for efficiencies 
realized as a result of the Defense Reform Initiative.
      The conferees included a general provision (Section 8106) 
which amends House language requiring the Secretary of Defense 
to submit an in-depth analysis of any proposed establishment or 
expansion of depot facilities by the Reserve components.
      The conferees included a general provision (Section 8109) 
which amends Senate language on National Defense Stockpile 
Asset sales.
      The conferees included a general provision (Section 8110) 
which amends House language related to the transfer of specific 
ships under certain conditions.
      The conferees included a general provision (Section 8114) 
which amends House language regarding the Cavalese, Italy 
accident.
      The conferees included a general provision (Section 8115) 
which amends Senate language regarding limitations on 
deployment of United States forces to Yugoslavia, Albania, or 
Macedonia.
      The conferees included a general provision (Section 8116) 
which amends House language prohibiting the expenditure of 
funds on developing or modernizing any information technology 
or national security system until that system has been 
independently certified as Year 2000 compliant.
      The conferees included a general provision (Section 8117) 
which amends House language requiring the Department to include 
Year 2000 simulations as part of their major military 
exercises.
      The conferees remain concerned about the progress the 
Department is making in bringing its systems into Year 2000 
compliance. However, the conferees are encouraged by the 
actions outlined in recent letters from the Secretary of 
Defense and Deputy Secretary of Defense regarding Year 2000 
compliance. The conferees believe a strong and sustained effort 
by the Department is critical to minimizing the risk.
      The conferees included a general provision (Section 8119) 
which amends Senate language requesting a report on the need 
for food stamp assistance by military families.
      The conferees included a general provision (Section 8120) 
which amends House language prohibiting the Department from 
contracting with the People's Republic of China (PRC) or the 
People's Liberation Army of the PRC.
      The conferees included a general provision (Section 8124) 
which amends Senate language regarding a vessel scrapping pilot 
program.
      The conferees included a general provision (Section 8125) 
which amends Senate language providing funds for work performed 
at Fort Wainwright, Alaska.
      The conferees included a general provision (Section 8128) 
which amends Senate language to express a sense of Congress 
regarding the use of child soldiers in armed conflicts.
      The conferees included a new general provision (Section 
8131) which waives limitations on expenditures for the National 
Guard Youth ChalleNGe Program for fiscal year 1999.
      The conferees included a new general provision (Section 
8132) which allows the Air Force to convey surplus relocatable 
shelters.
      The conferees included a new general provision (Section 
8133) which amends Senate language regarding the donation of 
surplus dental equipment to Indian Health Service facilities.
      The conferees included a new general provision (Section 
8134), reducing funds in Title III, Procurement, by 
$142,100,000. The House had recommended reducing the budget 
request by $142,100,000 in Title II, Operation and Maintenance, 
in order to reduce total funding requested for advisory and 
assistance services. The conferees have instead agreed to levy 
a $142,100,000 reduction against Title III.
      The conferees included a new general provision (Section 
8135) which reduces funding available for the Military 
Personnel and Operation and Maintenance accounts by 
$193,600,000 due to foreign currency fluctuation.
      The conferees included a new general provision (Section 
8136) which reduces funding available for the Operation and 
Maintenance accounts by $502,000,000 due to declining prices 
for bulk fuel.
      The conferees included a new general provision (Section 
8137) concerning the Global Positioning System. Section 8137 
requires the Secretary of Defense to develop a strategy to 
protect the integrity of the GPS frequency spectrum against 
interference and disruption. The conferees expect this strategy 
to be devised with the support of the Secretaries of State, 
Commerce, and Transportation, the director of the Office of 
Science and Technology Policy, and interested user and industry 
representatives. The required report shall include plans for 
collection and analysis of test and demonstration data to be 
completed in time for presentation by the United States at the 
World Radiocommunications Conference 2000. The report shall 
also include recommendations for additional filings for both 
space-based and ground-based services, as appropriate, to meet 
civil safety-of-life applications within existing international 
spectrum bands allocated for radionavigation satellite 
operations.
      The conferees included a new general provision (Section 
8138) which requires the Secretary of Defense to submit a 
report regarding military deployment rates for each service.
      The conferees have included a general provision (Section 
8139) which amends Senate language directing the Secretary of 
the Air Force to convey property at the former Pease Air Force 
Base to the Town of Newington, New Hampshire.
      The conferees have included a new general provision 
(Section 8142) which allows the Secretary of Defense to retain 
family housing at Fort Buchanan, Puerto Rico.
      The conferees have included a new general provision 
(Section 8143) which allows the Secretary of the Navy to convey 
the Magnolia housing area to the City of Seattle, Washington.
      The conferees have included a new general provision 
(Section 8144) which conveys an Army Reserve Center in Reading, 
Pennsylvania to the City of Reading, Pennsylvania.
      The conferees have included a new general provision 
(Section 8145) which directs the Secretary of the Air Force to 
obligate up to $7,646,000 of previously appropriated funds for 
demolition and related environmental restoration of 31 
buildings at the former Norton Air Force Base, California. 
Sufficient funds remain available for obligational adjustments 
within ``Base Realignment and Closure Account, Part I'' to 
absorb this cost within existing balances in the Base 
Realignment and Closure Accounts.
      The conferees have included a new general provision 
(Section 8146) which establishes a cash objective and policy 
for unbudgeted operating losses in the Defense Working Capital 
Funds.
      The conferees have included a new general provision 
(Section 8147) which addresses the Military Personnel 
Information Systems.
      The conferees concur in the direction in the House Report 
regarding military personnel information systems and the 
revised Defense Integrated Military Human Resources System 
(DIMHRS). Section 8147 establishes a revised DIMHRS program, a 
defense reform initiative enterprise pilot program for military 
and manpower personnel information systems. Manpower and 
personnel information systems shall include, but not be limited 
to, personnel, manpower, training, and compensation. Health and 
dependent systems should only be included for interoperability 
and coordination purposes. The conferees have provided the 
budget request for DIMHRS and the Navy Standard Integrated 
Personnel System (NSIPS) and direct that DIMHRS funding be used 
for the revised DIMHRS enterprise level pilot program. The 
conferees direct DoD to provide full funding for this revised 
program in future budget requests and defense plans. The 
conferees have provided an additional $38,000,000 in Operation 
and Maintenance, Defense-Wide and $12,000,000 in Procurement, 
Defense-Wide and direct these funds be obligated as directed in 
the House Report.
      The Department shall identify, develop and approve 
strategic functional requirements for the current and revised 
enterprise DIMHRS program through the Under Secretary of 
Defense for Personnel and Readiness, and in full coordination 
with the individual services and Joint Chiefs, no later than 
nine months from the date of enactment of this Act. The DoD 
Chief Information Officer and Director, Program Analysis and 
Evaluation, shall establish and incorporate into the budget 
process mission performance goals and measures and identify 
functional savings resulting from business process 
improvements. The Department shall identify changes to the 
planning, programming, and budgeting system needed to implement 
the revised DIMHRS enterprise solution including, but not 
limited to, instituting program elements and activity based 
costing for this enterprise solution. The conferees direct that 
configuration management and budget oversight of all manpower 
and personnel legacy systems be centralized with day to day 
operational management remaining with the services. The 
Department shall provide a report to the Appropriations 
Committees by May 1, 1999 on the revised enterprise DIMHRS, and 
how the revised program, budget changes and business process 
improvement changes comply with Appropriations Committee 
direction and with Public Laws 104-106 and 103-62.
      The conferees included a new general provision (Section 
8148) regarding a review of military compensation. The 
conferees are deeply concerned with the increasing demands 
placed on our military personnel, which affect the ability to 
recruit and retain the highly skilled personnel needed to 
maintain the all-volunteer force. Operating tempos, 
particularly for those forces deployed in support of 
contingency operations, are at historic high rates at the same 
time force structure has been reduced. People are working 
harder and under more challenging circumstances. At the same 
time, outside employment opportunities for highly skilled 
military personnel, especially in certain career fields, are 
readily available due to the nation's prolonged period of 
economic prosperity. In this environment, while none of our 
military personnel serve for financial advancement, we should 
not expect them to serve and suffer financial hardship.
      These competing demands are being compounded by a 
widespread perception within the force that there has been, and 
will continue to be, a steady erosion in those programs 
associated with military compensation and benefits. For 
example, the conferees note that while the Administration has 
in recent years proposed increases in pay rates consistent with 
existing legal limits, those increases have not reversed the 
gap between military and private compensation. Of even more 
concern, it is becoming steadily more apparent that the changes 
in the military retirement system enacted in 1986 are having a 
direct impact on the services' reenlistment rates, and have 
raised fundamental questions of equity between those service 
members who are under the previously established retirement 
structure and those who have joined the force since 1986. 
Finally, the conferees continue to observe persistent problems 
in other programs intended to provide for an adequate quality 
of life for service members and their families, including 
medical care, housing programs, and family support programs. 
The conferees are convinced that these problems, coupled with 
the high level of demands being placed on the force and the 
effects of a healthy economy, are directly responsible for the 
emergence of downward trends in recruiting and retention of 
personnel. If these interweaving issues are not dealt with 
soon, and in a meaningful manner, the conferees fear it could 
inevitably result in a dramatic decline in the capability of 
the nation's armed forces.
      The conferees believe that a long-term solution to these 
issues cannot be found by simply focusing on one aspect of 
these problems, such as pay or retirement, in isolation from 
the others. The complexity of these issues requires a more 
broad approach if the Department of Defense is to truly address 
the new and different demands confronting the military force of 
the future. Therefore, in Section 8148, the conferees direct 
the Secretary of Defense, in consultation with the nation's 
senior military leadership, to undertake a comprehensive 
reassessment of the array of existing compensation and benefit 
programs, and the need, if any, for changes in these programs 
in order to meet both future manpower and quality of life 
requirements. The conferees intend that this effort provide the 
underpinning for a total review of these programs and issues by 
both the executive and legislative branches as soon as 
possible, and therefore direct that the Secretary provide an 
interim report on these issues to the congressional defense 
committees within 60 days of the enactment of the fiscal year 
1999 Department of Defense Appropriations Act. In order to 
provide for full consideration of these matters in the next 
Congress, the Secretary is also directed to provide his 
recommendations on these issues to the Congress in conjunction 
with submission of the fiscal year 2000 budget request.

                   Conference total--with Comparisons

      The total new budget (obligational) authority for the 
fiscal year 1999 recommended by the Committee of Conference, 
with compari- 
sons to the fiscal year 1998 amount, the 1999 budget estimates, 
and the House and Senate bills for 1999 follow:

New budget (obligational) authority, fiscal year 1998...$247,708,522,000
Budget estimates of new (obligational) authority, fiscal 
    year 1999........................................... 250,998,803,000
House bill, fiscal year 1999............................ 250,727,097,000
Senate bill, fiscal year 1999........................... 250,518,092,000
Conference agreement, fiscal year 1999.................. 250,510,548,312
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      1998..............................................  +2,802,026,312
    Budget estimates of new (obligational) authority, 
      fiscal year 1999..................................    -488,254,688
    House bill, fiscal year 1999........................    -216,548,688
    Senate bill, fiscal year 1999.......................      -7,543,688

                                   Bill Young,
                                   Joe McDade,
                                   Jerry Lewis,
                                   Joe Skeen,
                                   David L. Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Ernest J. Istook, Jr.,
                                   Randy ``Duke'' Cunningham,
                                   Bob Livingston,
                                   John P. Murtha,
                                   Norman D. Dicks,
                                   W.G. (Bill) Hefner,
                                   Martin Olav Sabo,
                                   Julian C. Dixon,
                                   Peter J. Visclosky,
                                 Managers on the Part of the House.

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

                                
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