[Senate Report 105-200]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 395
105th Congress                                                   Report
                                 SENATE

  2d Session                                                    105-200
_______________________________________________________________________


 
             DEPARTMENT OF DEFENSE APPROPRIATION BILL, 1999

                                _______
                                

     June 4 (legislative day, June 2), 1998.--Ordered to be printed

_______________________________________________________________________


   Mr. Stevens, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 2132]

    The Committee on Appropriations reports the bill (S. 2132) 
making appropriations for the Department of Defense for the 
fiscal year ending September 30, 1999, and for other purposes, 
reports favorably thereon and recommends that the bill do pass.


New obligational authority

Total of bill as reported to Senate.....................$250,518,092,000
Total of 1999 budget estimate........................... 250,998,803,000
Amount of fiscal year 1998 enacted...................... 247,708,522,000
The bill as reported to the Senate:
    Below fiscal year 1999 budget estimate..............     480,711,000
    Over enacted appropriations for fiscal year 1998....   2,809,570,000


                            C O N T E N T S

                              ----------                              
Background:
                                                                   Page
    Purpose of the bill..........................................     4
    Hearings.....................................................     4
    Summary of bill..............................................     4
    Government Performance and Results Act.......................     5
    Compliance with 302(b) allocation............................     6
Budgetary impact of the bill.....................................     6

                      TITLE I--MILITARY PERSONNEL

Military personnel...............................................     7
Military personnel, Army.........................................     9
Military personnel, Navy.........................................    10
Military personnel, Marine Corps.................................    10
Military personnel, Air Force....................................    10
Reserve and National Guard Personnel.............................    11
Reserve personnel, Army..........................................    11
Reserve personnel, Navy..........................................    11
Reserve personnel, Marine Corps..................................    11
Reserve personnel, Air Force.....................................    11
National Guard personnel, Army...................................    11
National Guard personnel, Air Force..............................    12

                  TITLE II--OPERATION AND MAINTENANCE

Operation and maintenance overview...............................    13
Servicewide operation and maintenance programs...................    14
Operation and maintenance, Army..................................    15
Operation and maintenance, Navy..................................    19
Operation and maintenance, Marine Corps..........................    23
Operation and maintenance, Air Force.............................    25
Operation and maintenance, defense-wide..........................    29
Reserve and National Guard operation and maintenance.............    33
Operation and maintenance, Army Reserve..........................    34
Operation and maintenance, Navy Reserve..........................    34
Operation and maintenance, Marine Corps Reserve..................    34
Operation and maintenance, Air Force Reserve.....................    34
Operation and maintenance, Army National Guard...................    34
Operation and maintenance, Air National Guard....................    36
Overseas contingency operations transfer fund....................    36
Court of Military Appeals........................................    36
Environmental restoration........................................    37
Environmental restoration, Army..................................    38
Environmental restoration, Navy..................................    38
Environmental restoration, Air Force.............................    38
Environmental restoration, defense-wide..........................    38
Environmental restoration, formerly used defense sites...........    38
Former Soviet Union threat reduction.............................    39
Overseas humanitarian, disaster, and civic aid...................    39

                         TITLE III--PROCUREMENT

Estimates and appropriation summary..............................    40
Items of special interest........................................    41
Aircraft procurement, Army.......................................    42
Missile procurement, Army........................................    45
Procurement of weapons and tracked combat vehicles, Army.........    47
Procurement of ammunition, Army..................................    50
Other procurement, Army..........................................    52
Aircraft procurement, Navy.......................................    59
Weapons procurement, Navy........................................    62
Procurement of ammunition, Navy and Marine Corps.................    65
Shipbuilding and conversion, Navy................................    66
Other procurement, Navy..........................................    68
Procurement, Marine Corps........................................    74
Aircraft procurement, Air Force..................................    77
Missile procurement, Air Force...................................    83
Procurement of ammunition, Air Force.............................    85
Other procurement, Air Force.....................................    86
Procurement, defense-wide........................................    90
National Guard and Reserve equipment.............................    93

          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

Summary of Committee action......................................    97
Research, development, test, and evaluation, Army................    98
Research, development, test, and evaluation, Navy................   109
Research, development, test, and evaluation, Air Force...........   119
Research, development, test, and evaluation, defense-wide........   129
Developmental test, and evaluation, defense......................   140
Operational test and evaluation, defense.........................   140

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

Defense working capital funds adjustments........................   141
National defense sealift fund....................................   141

          TITLE VI--OTHER DEPARTMENT OF DEFENSE APPROPRIATIONS

Chemical agents and munitions destruction, defense...............   142
Defense Health Program...........................................   143
Drug interdiction and counterdrug activities, defense............   145
Office of the Inspector General..................................   147

                      TITLE VII--RELATED AGENCIES

Central Intelligence Agency retirement and disability system fund   148
Community management staff.......................................   148
National security education trust fund...........................   148
Kaho'olawe Island conveyance, remediation and environmental 
  restoration trust fund.........................................   148

                               TITLE VIII

General provisions...............................................   150
Compliance with paragraph 7(c), rule 16, standing rules of the 
  Senate.........................................................   156
Compliance with paragraph 7(c), rule 26, standing rules of the 
  Senate.........................................................   156
Compliance with paragraph 12, rule 26, standing rules of the 
  Senate.........................................................   157

                               BACKGROUND

                          Purpose of the Bill

    This bill makes appropriations for the military functions 
of the Department of Defense for the period October 1, 1998, 
through September 30, 1999. Functional areas include the pay, 
allowances, and support of military personnel, operation and 
maintenance of the forces, procurement of equipment and 
systems, and research, development, test, and evaluation. 
Appropriations for military assistance, military construction, 
family housing, nuclear warheads, and civil defense are 
provided in other bills.

                                Hearings

    The Subcommittee on Department of Defense Appropriations 
began hearings on the fiscal year 1999 budget request on 
February 25, 1998, and concluded them on May 20, 1998, after 12 
separate sessions. The subcommittee heard testimony from 
representatives of the Department of Defense, other Federal 
agencies, representatives of organizations, and the public.

                          Summary of the Bill

    The Committee considered a total fiscal year 1999 budget 
request of $250,998,803,000 in new obligational authority for 
the military functions of the Department of Defense, excluding 
military assistance, military construction, family housing and 
civil defense. The fiscal year 1998 enacted amounts in this 
report do not include the fiscal year 1998 emergency 
supplemental funding appropriated in April 1998. The following 
table displays the recommendations for each title:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                          Fiscal year 1998   Fiscal year 1999      Committee    
                                                              enacted            request         recommendation 
----------------------------------------------------------------------------------------------------------------
Title I--Military personnel............................        69,470,505         70,777,086         70,486,263 
Title II--Operation and maintenance....................        82,895,461         83,542,237         83,540,513 
    (By transfer)......................................          (150,000)          (150,000)          (150,000)
Title III--Procurement.................................        45,647,215         47,849,546         48,568,838 
Title IV--Research, development, test, and evaluation..        37,891,324         36,078,577         36,107,571 
Title V--Revolving and management  funds...............         2,046,900            549,666            764,066 
Title VI--Other Department of Defense programs.........        11,821,037         11,770,568         11,992,118 
Title VII--Related agencies............................           354,980            360,123            364,123 
Title VIII--General provisions.........................        -2,418,900             71,000         -1,305,400 
    (Additional transfer authority)....................        (2,000,000)        (2,000,000)        (2,000,000)
                                                        --------------------------------------------------------
      Total, Department of Defense.....................       247,708,522        250,998,803        250,518,092 
          Scorekeeping adjustments.....................  .................        -1,858,600   .................
                                                        --------------------------------------------------------
            Grand total................................       247,708,522        249,140,203        250,518,092 
----------------------------------------------------------------------------------------------------------------

                     classified program adjustments

    The Committee recommends adjustments to certain classified 
programs, as explained in the classified annex to the 
Committee's report.

                 Government Performance and Results Act

    The Committee has closely examined the Department's 
performance plan for fiscal year 1999, and considered the 
extensive review undertaken by the General Accounting Office 
[GAO] to evaluate the compliance of the plan with the Results 
Act. The Committee commends the evaluation and recommendations 
presented by GAO, and anticipates the ongoing participation of 
GAO in monitoring the Department's compliance and progress 
under the Results Act.
    The Department of Defense faces many external factors, 
related to unpredictable international security challenges, 
that make specific, identifiable, and quantifiable data 
difficult to project and calculate. The Department's six 
strategic goals define broad mission priorities, but these 
parameters do not satisfy the criteria specified in the Results 
Act as performance goals. To better enable Congress and OMB to 
monitor the Department's compliance with the Results Act, the 
Committee recommends that the Secretary provide both mission 
and functional operational performance goals in the 
Department's fiscal year 2000 performance plan.
    Specifically, the Department should establish performance 
goals for recruiting and retention of military personnel, depot 
financial and logistics performance, real property maintenance, 
training priorities, unit readiness, weapons system testing, 
and contractor cost performance on procurement and research and 
development programs. These factors will present to the 
Congress a more specific and genuine measure of the 
effectiveness of Department of Defense programs and budget 
priorities.
    The defense reform initiative [DRI], led by the Deputy 
Secretary of Defense, should be an effective engine within the 
Department to utilize the Results Act to achieve the cost-
saving efficiencies and improvements described by the Secretary 
in testimony before the Committee. The performance plan for 
fiscal year 2000 should address DRI objectives for that year, 
and establish measures to assess DRI accomplishments. These 
revised performance goals and DRI proposals should accompany 
the fiscal year 2000 budget request to the Congress.
    The fiscal year 1999 performance plan was only of marginal 
benefit to the Congress, and limited in scope. The adjustments 
proposed for fiscal year 2000 will enhance the value of this 
plan to the Congress, and ensure improved compliance by the 
Department with the Results Act.

                   Compliance With 302(b) Allocation

    The Appropriations Committee conformed fully to the budget 
resolution for defense spending in its 302(b) allocation. This 
allocation divided the budget authority and outlays among the 
subcommittees with jurisdiction over discretionary spending. 
The Defense Subcommittee has the greatest share of defense 
spending. In this recommended bill, the Appropriations 
Committee has remained within the tight constraints of its 
302(b) allocation for defense.

                                            BUDGETARY IMPACT OF BILL                                            
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS  
                                                     AMENDED                                                    
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays        
                                                             ---------------------------------------------------
                                                               Committee    Amount  of   Committee    Amount  of
                                                               allocation      bill      allocation      bill   
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations                                                    
 to its subcommittees of amounts for 1999: Subcommittee on                                                      
 Defense:                                                                                                       
    Defense discretionary...................................      250,290      250,290      244,942  \1\ 244,942
    Nondefense discretionary................................           27           27           27           27
    Violent crime reduction fund............................  ...........  ...........  ...........  ...........
    Mandatory...............................................          202          202          202          202
Projections of outlays associated with the recommendation:                                                      
    1999....................................................  ...........  ...........  ...........  \2\ 168,173
    2000....................................................  ...........  ...........  ...........       50,899
    2001....................................................  ...........  ...........  ...........       17,345
    2002....................................................  ...........  ...........  ...........        7,501
    2003 and future years...................................  ...........  ...........  ...........        5,331
Financial assistance to State and local governments for 1999           NA  ...........           NA  ...........
----------------------------------------------------------------------------------------------------------------
\1\ Includes outlays from prior-year budget authority.                                                          
\2\ Excludes outlays from prior-year budget authority.                                                          
                                                                                                                
NA: Not applicable.                                                                                             


                                TITLE I

                           MILITARY PERSONNEL

    Funds appropriated under this title provide for pay and 
allowances, permanent change of station travel, and various 
other personnel costs for uniformed members of the Armed 
Forces. The Committee recommends funding for an active duty 
military personnel level of 1,395,778 for fiscal year 1999, as 
requested in the President's fiscal year 1999 budget. The 
Committee recommends funding for a Reserve and National Guard 
personnel level of 875,094 for fiscal year 1999, as requested 
in the budget estimate.
    A total of $70,777,086,000 is requested in the President's 
fiscal year 1999 budget for military personnel appropriations. 
This request includes $61,198,876,000 for active duty forces 
and $9,578,210,000 for the Reserves and Guard.

                      summary of committee action

    The Committee recommends appropriations totaling 
$70,486,263,000 in title I, military personnel, for fiscal year 
1999. This amount is $290,823,000 below the budget estimate.
    Committee appropriation recommendations are displayed in 
the following table:

                              SUMMARY OF MILITARY PERSONNEL APPROPRIATIONS, TITLE I                             
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Active Force:                                                                                                   
    Army........................................................      21,002,051      20,822,051        -180,000
    Navy........................................................      16,613,053      16,532,153         -80,900
    Marine Corps................................................       6,272,089       6,253,189         -18,900
    Air Force...................................................      17,311,683      17,205,660        -106,023
                                                                 -----------------------------------------------
      Subtotal..................................................      61,198,876      60,813,053        -385,823
                                                                 ===============================================
Guard/Reserve:                                                                                                  
    Army Reserve................................................       2,152,075       2,152,075  ..............
    Navy Reserve................................................       1,387,379       1,387,379  ..............
    Marine Corps Reserve........................................         401,888         401,888  ..............
    Air Force Reserve...........................................         856,176         856,176  ..............
    Army National Guard.........................................       3,404,595       3,499,595         +95,000
    Air National Guard..........................................       1,376,097       1,376,097  ..............
                                                                 -----------------------------------------------
      Subtotal..................................................       9,578,210       9,673,210         +95,000
                                                                 ===============================================
      Grand total...............................................      70,777,086      70,486,263        -290,823
----------------------------------------------------------------------------------------------------------------

    The following table summarizes adjustments to the 1999 
manpower request for Active, Guard, and Reserve Forces.

                                            RECOMMENDED END STRENGTH                                            
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Active Force:                                                                                                   
    Army........................................................         480,000         480,000  ..............
    Navy........................................................         372,696         372,696  ..............
    Marine Corps................................................         172,200         172,200  ..............
    Air Force...................................................         370,882         370,882  ..............
                                                                 -----------------------------------------------
      Subtotal..................................................       1,395,778       1,395,778  ..............
                                                                 ===============================================
Guard/Reserve:                                                                                                  
    Army Reserve................................................         208,000         208,000  ..............
    Navy Reserve................................................          90,843          90,843  ..............
    Marine Corps Reserve........................................          40,018          40,018  ..............
    Air Force Reserve...........................................          72,242          72,242  ..............
    Army National Guard.........................................         357,000         357,000  ..............
    Air National Guard..........................................         106,991         106,991  ..............
                                                                 -----------------------------------------------
      Subtotal..................................................         875,094         875,094  ..............
                                                                 ===============================================
      Grand total...............................................       2,270,872       2,270,872  ..............
----------------------------------------------------------------------------------------------------------------

                      full-time support strengths

    The Committee recommends Guard and Reserve full-time 
support end strength of 122,993 for fiscal year 1999. The 
following table summarizes adjustments to the 1999 Guard and 
Reserve full-time support end strength.

                                GUARD AND RESERVE FULL-TIME SUPPORT END STRENGTHS                               
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Army Reserve:                                                                                                   
    AGR.........................................................          11,804          11,804  ..............
    Technicians.................................................           5,205           5,205  ..............
Navy Reserve TAR................................................          15,590          15,590  ..............
Marine Corps Reserve............................................           2,362           2,362  ..............
Air Force Reserve:                                                                                              
    AGR.........................................................             991             991  ..............
    Technicians.................................................           9,761           9,761  ..............
Army National Guard:                                                                                            
    AGR.........................................................          21,763          21,763  ..............
    Technicians.................................................          22,179          22,179  ..............
Air National Guard:                                                                                             
    AGR.........................................................          10,930          10,930  ..............
    Technicians.................................................          22,408          22,408  ..............
                                                                 -----------------------------------------------
      Total:                                                                                                    
          AGR/TAR...............................................          63,440          63,440  ..............
          Technicians...........................................          59,553          59,553  ..............
----------------------------------------------------------------------------------------------------------------

    Pay raise.--The President's fiscal year 1999 budget request 
recommends a 3.1-percent pay raise for military personnel. The 
Committee supports this pay increase to help ensure that 
military compensation remains attractive and competitive with 
private sector pay, and that the military services continue to 
attract and retain highly qualified volunteers. This increase 
is effective January 1, 1999.
    Global military force policy [GMFP].--The global military 
force policy is a Department of Defense force management tool 
which allows the Secretary of Defense, and Chairman of the 
Joint Chiefs of Staff to balance the requirements of 
warfighting commanders in chief [CINC's] with limited service 
resources. CINC's require certain limited assets with unique 
mission capabilities to support ongoing operations. These 
assets, referred to as low density-high demand [LDHD], are 
stressed by a consistently high operational tempo.
    The Committee recognizes the Department's day-to-day 
efforts to balance limited assets against high CINC demand. 
Nevertheless, a pattern of LDHD assets stressed over the long 
term, suggests a mismatch between force structure and CINC 
requirements. Accordingly, the Committee requires the following 
report: not later than 90 days from enactment of this bill, the 
Secretary of Defense shall submit a report to the defense 
committees which describes necessary measures to modify the 
force structure of LDHD units, to include manpower and 
equipment. In identifying these force structure changes, the 
report shall describe cost savings to be found from within 
existing end strength levels of units less relevant to CINC 
demands, or warfighting needs. The report shall also describe 
any assets from each of the services and components which does 
not appear on the LDHD list, yet may substitute for LDHD 
assets. The Secretary may also provide any proposals for 
expanding or converting reserve component force structure to 
augment LDHD assets.
    Advance pay policy change.--The 1999 budget request 
contained $301,000,000 to implement a DOD policy change for 
obligation of funds for advance pay. After consultation with 
the Department of Defense, and the Senate authorization 
committee, the Committee concludes that these funds, and the 
policy change, are not required.

                        Military Personnel, Army

Appropriations, 1998.................................... $20,452,057,000
Budget estimate, 1999...................................  21,002,051,000
Committee recommendation................................  20,822,051,000

    The Committee recommends an appropriation of 
$20,882,051,000 for fiscal year 1999. This amount is 
$180,000,000 below the budget request.
    All recommended adjustments to the budget request, 
including those items discussed elsewhere in this report, are 
summarized below:

                        [In thousands of dollars]

                                                               Committee
        Program                                               adjustment

Advance pay policy change.....................................  -161,000
Personnel understrength savings...............................   -12,000
Foreign currency savings......................................    -7,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................  -180,000

Recommended appropriation

                                                              20,822,051

                        Military Personnel, Navy

Appropriations, 1998.................................... $16,493,518,000
Budget estimate, 1999...................................  16,613,053,000
Committee recommendation................................  16,532,153,000

    The Committee recommends an appropriation of 
$16,532,153,000 for fiscal year 1999. This amount is 
$80,900,000 below the budget request.
    All recommended adjustments to the budget request, 
including those items discussed elsewhere in this report, are 
summarized below:

                        [In thousands of dollars]

                                                               Committee
        Program                                               adjustment

Advance pay policy change.....................................   -69,000
Personnel understrength savings...............................    -6,600
Foreign currency savings......................................    -5,300
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................   -80,900

Recommended appropriation

                                                              16,532,153

                    Military Personnel, Marine Corps

Appropriations, 1998....................................  $6,137,899,000
Budget estimate, 1999...................................   6,272,089,000
Committee recommendation................................   6,253,189,000

    The Committee recommends an appropriation of $6,253,189,000 
for fiscal year 1999. This amount is $18,900,000 below the 
budget request.
    All recommended adjustments to the budget request, 
including those items discussed elsewhere in this report, are 
summarized below:

                        [In thousands of dollars]

                                                               Committee
        Program                                               adjustment

Advance pay policy change.....................................   -18,000
Personnel understrength savings...............................    -8,900
Foreign currency savings......................................    -2,000
Enlistment Bonus Program......................................    +5,000
Marine Corps college fund.....................................    +5,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................   -18,900

Recommended appropriation

                                                               6,253,189

                     Military Personnel, Air Force

Appropriations, 1998.................................... $17,102,120,000
Budget estimate, 1999...................................  17,311,683,000
Committee recommendation................................  17,205,660,000

    The Committee recommends an appropriation of 
$17,205,660,000 for fiscal year 1999. This amount is 
$106,023,000 below the budget request.
    All recommended adjustments to the budget request, 
including those items discussed elsewhere in this report, are 
summarized below:

                        [In thousands of dollars]

                                                               Committee
        Program                                               adjustment

Additional B-52 force structure...............................    +3,600
Advance pay policy change.....................................   -53,000
Personnel understrength savings...............................   -53,000
Foreign currency savings......................................    -3,623
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................  -106,023

Recommended appropriation

                                                              17,205,660

                  Reserve and National Guard Personnel

                    summary of committee adjustments

                        Reserve Personnel, Army

Appropriations, 1998....................................  $2,032,046,000
Budget estimate, 1999...................................   2,152,075,000
Committee recommendation................................   2,152,075,000

    The Committee recommends an appropriation of $2,152,075,000 
for fiscal year 1999, as recommended in the budget request.

                        Reserve Personnel, Navy

Appropriations, 1998....................................  $1,376,601,000
Budget estimate, 1999...................................   1,387,379,000
Committee recommendation................................   1,387,379,000

    The Committee recommends an appropriation of $1,387,379,000 
for fiscal year 1999, as recommended in the budget request.

                    Reserve Personnel, Marine Corps

Appropriations, 1998....................................    $391,770,000
Budget estimate, 1999...................................     401,888,000
Committee recommendation................................     401,888,000

    The Committee recommends an appropriation of $401,888,000 
for fiscal year 1999, as recommended in the budget request.

                      Reserve Personnel, Air Force

Appropriations, 1998....................................    $815,915,000
Budget estimate, 1999...................................     856,176,000
Committee recommendation................................     856,176,000

    The Committee recommends an appropriation of $856,176,000 
for fiscal year 1999, as recommended in the budget request.

                     National Guard Personnel, Army

Appropriations, 1998....................................  $3,333,867,000
Budget estimate, 1999...................................   3,404,595,000
Committee recommendation................................   3,499,595,000

    The Committee recommends an appropriation of $3,499,595,000 
for fiscal year 1999. This amount is $95,000,000 above the 
budget request.
    All recommended adjustments to the budget request, 
including those items discussed elsewhere in the report, are 
summarized below:

                        [In thousands of dollars]

                                                               Committee
        Program                                               adjustment

Schools and training..........................................   +86,000
Bonuses shortfall.............................................    +9,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................   +95,000

Recommended appropriation

                                                               3,499,595

                  National Guard Personnel, Air Force

Appropriations, 1998....................................  $1,334,712,000
Budget estimate, 1999...................................   1,376,097,000
Committee recommendation................................   1,376,097,000

    The Committee recommends an appropriation of $1,376,097,000 
for fiscal year 1999. This amount is equal to the budget 
request.

                                TITLE II

                       OPERATION AND MAINTENANCE

    The Committee recommends appropriations totaling 
$83,540,513,000 in title II, operation and maintenance, for 
fiscal year 1999. This is $1,724,000 below the budget estimate. 
The Committee also recommends that $150,000,000 be transferred 
from the national defense stockpile transaction fund. The 
Committee recommendations, by appropriation account, are 
compared with the budget estimate in the following table:

                                      SUMMARY OF OPERATION AND MAINTENANCE                                      
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                                                                  1999 budget       Committee         budget    
                                                                    estimate      recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
O&M:                                                                                                            
    Army......................................................      17,223,063       17,212,463          -10,600
        Transfer--stockpile...................................         (50,000)         (50,000)  ..............
    Navy......................................................      21,877,202       21,813,315          -63,887
        Transfer--stockpile...................................         (50,000)         (50,000)  ..............
    Marine Corps..............................................       2,523,703        2,576,190          +52,487
    Air Force.................................................      19,127,004       19,073,141          -53,863
        Transfer--stockpile...................................         (50,000)         (50,000)  ..............
    Defense-wide..............................................      10,750,601       10,259,231         -491,370
    Army Reserve..............................................       1,202,622        1,202,622   ..............
    Navy Reserve..............................................         928,639          928,639   ..............
    Marine Corps Reserve......................................         114,593          114,593   ..............
    Air Force Reserve.........................................       1,744,696        1,744,696   ..............
    Army National Guard.......................................       2,436,815        2,661,815         +225,000
    Air National Guard........................................       3,093,933        3,113,933          +20,000
Overseas contingency operations transfer fund.................         746,900          746,900   ..............
Pentagon renovation transfer fund.............................  ...............         279,820         +279,820
Contingency operations MWR fund...............................  ...............          50,000          +50,000
Court of Military Appeals.....................................           7,324            7,324   ..............
Environmental restoration:                                                                                      
    Army......................................................         377,640          370,640           -7,000
    Navy......................................................         281,600          274,600           -7,000
    Air Force.................................................         379,100          372,100           -7,000
    Defense-wide..............................................          26,091           23,091           -3,000
    Formerly used defense sites...............................         195,000          225,000          +30,000
Former Soviet Union threat reduction..........................         442,400          440,400           -2,000
Humanitarian assistance.......................................          63,311           50,000          -13,311
                                                               -------------------------------------------------
      Total...................................................      83,542,237       83,540,513           -1,724
----------------------------------------------------------------------------------------------------------------

                   operation and maintenance overview

    Appropriations under this title finance the cost of 
operating and maintaining U.S. Armed Forces, including Guard 
and Reserve components and Department of Defense agencies. 
These funds are used to purchase fuel and spare parts for 
training activities, pay civilian personnel, purchase supplies, 
equipment and service contracts for repairing weapons systems 
and facilities, and finance other personnel support programs.

             servicewide operation and maintenance programs

                     o&m support of military forces

                       real property maintenance

    In fiscal year 1998, the Committee added $724,620,000 to 
assist in reducing the extensive backlog of real property 
maintenance, with $360,000,000 provided in the ``Quality of 
life enhancements, defense'' account for the repair and 
improvement of housing, barracks, and dining facilities 
throughout the Department of Defense.
    This year, the Committee provides an additional 
$264,000,000, but has distributed these funds among the 
individual service operation and maintenance accounts for 
transfer into the ``Quality of life enhancements, defense'' 
account. As was the case with this account in preceding years, 
these funds will remain available for 2 years, until September 
30, 2000, and shall be used only for the maintenance and repair 
of barracks, dormitories or other personnel support facilities 
within the United States and its territories. The Committee 
directs each service Secretary to provide a report to the 
congressional defense committees on all additional projects to 
be funded prior to any obligation of funds or contract awards, 
and no later than March 15, 1999. This report shall include 
project description and location, estimated cost, and projected 
commencement and completion dates.

                    contingency operations mwr fund

    The Committee provides $50,000,000 in this new account to 
fund shortfalls in the morale, welfare, and recreational 
services available to troops deployed in support of contingency 
operations and their families, and to address retention and 
reenlistment shortfalls in critical military occupational 
specialties.

                    pentagon renovaton transfer fund

    The Committee has consolidated the funding for the 
Pentagon's ongoing renovation from the service and defensewide 
operation and maintenance accounts into a separate fund within 
title II. The total transferred to this new account from the 
Washington Headquarters Service includes the renovation 
payments attributed to the BMDO, DIA, NSA, NIMA, and DOHA. The 
Committee directs the Department of Defense to utilize this 
fund for future budget request submissions to the Congress, 
with a delineation of contributions by department and 
organization.

                   nato sustainment transfer account

    The Committee continues to harbor significant concerns 
regarding the actual costs of expanding and maintaining the 
NATO alliance. Over the months preceding the ratification vote 
on NATO expansion, the Committee's efforts to determine past 
expenditure levels and historical data on U.S. costs in support 
of NATO often resulted in the receipt of inconsistent or 
incomplete data. In an effort to bring greater visibility to 
the important contribution that the United States makes to the 
NATO alliance, the Committee directs the Secretary of Defense 
to establish a separate ``NATO sustainment transfer'' account 
and to move all NATO and NATO-related programs and funding into 
this account in future budget requests, commencing in fiscal 
year 2000.

                        fact-of-life adjustments

                         flying hour shortfalls

    The Committee has provided additional funds in the Navy and 
Air Force operation and maintenance accounts to mitigate the 
impact of identified shortfalls in flying hour funding.

                      foreign currency fluctuation

    The Committee has made adjustments to the accounts in this 
title which reflect projected savings as a result of favorable 
currency rate changes, as authorized in the Senate Armed 
Services Committee Report 105-189.

                       fuel pricing differential

    The Senate Armed Services Committee examined the impact of 
the current reduced prices for oil and fuel and noted that 
significant savings can be expected in fiscal year 1999 as a 
result of these changes. In light of a continuing downward 
trend in these prices, the Committee has reduced the operation 
and maintenance accounts to reflect an expected savings of 
$454,000,000.

                   civilian personnel underexecution

    The Committee has directed reductions in the service and 
defensewide operation and maintenance accounts in concert with 
the action taken in Senate Armed Services Committee Report 105-
189.

                defense acquisition university transfer

    The Committee supports the Department of Defense decision 
to move the Defense Acquisition University to the network of 
National Defense University institutions and expects that this 
consolidation will reap significant savings and efficiencies as 
a result of shared infrastructure, resources, and technical 
support. Subsequently, the Committee reduces the total amount 
appropriated by $8,500,000.

                    Operation and Maintenance, Army

Appropriations, 1998.................................... $16,754,306,000
Budget estimate, 1999...................................  17,223,063,000
Committee recommendation................................  17,212,463,000

    The Committee recommends an appropriation of 
$17,212,463,000. This is $10,600,000 below the budget estimate.

                    SUMMARY OF COMMITTEE ADJUSTMENTS

    Allocations of the Committee adjustments are made for each 
operation and maintenance, Army funding category identified in 
the Department's O-1 submission. A table showing the budget 
estimate, Committee adjustment, and recommended funding level 
by O-1 category is provided below. Proposed transfers of funds 
within budget activity funding categories in excess of 
$15,000,000 are subject to standard reprogramming procedures.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1999 budget       Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
               OPERATION AND MAINTENANCE, ARMY                                                                  
                                                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                            
    LAND FORCES:                                                                                                
        DIVISIONS............................................       1,091,232        1,098,732           +7,500 
        CORPS COMBAT FORCES..................................         299,739          299,739   ...............
        CORPS SUPPORT FORCES.................................         316,361          316,361   ...............
        ECHELON ABOVE CORPS FORCES...........................         434,579          434,579   ...............
        LAND FORCES OPERATIONS SUPPORT.......................         824,557          824,557   ...............
    LAND FORCES READINESS:                                                                                      
        FORCE READINESS OPERATIONS SUPPORT...................         973,814          974,814           +1,000 
        LAND FORCES SYSTEMS READINESS........................         375,038          375,038   ...............
        LAND FORCES DEPOT MAINTENANCE........................         570,723          570,723   ...............
    LAND FORCES READINESS SUPPORT:                                                                              
        BASE SUPPORT.........................................       2,332,231        2,332,231   ...............
        MAINTENANCE OF REAL PROPERTY.........................         641,651          641,651   ...............
        MANAGEMENT AND OPERATIONAL HEADQUARTERS..............         110,538          110,538   ...............
        UNIFIED COMMANDS.....................................          71,990           71,990   ...............
        MISCELLANEOUS ACTIVITIES.............................          63,478           63,478   ...............
                                                              --------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1...........................       8,105,931        8,114,431           +8,500 
                                                              ==================================================
BUDGET ACTIVITY 2: MOBILIZATION:                                                                                
    MOBILITY OPERATIONS:                                                                                        
        STRATEGIC MOBILIZATION...............................         314,541          314,541   ...............
        ARMY PREPOSITIONED STOCKS............................         165,349          165,349   ...............
        INDUSTRIAL PREPAREDNESS..............................          78,645           78,645   ...............
        MAINTENANCE OF REAL PROPERTY.........................          66,100           66,100   ...............
                                                              --------------------------------------------------
          TOTAL, BUDGET ACTIVITY 2...........................         624,635          624,635   ...............
                                                              ==================================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                     
    ACCESSION TRAINING:                                                                                         
        OFFICER ACQUISITION..................................          63,580           62,180           -1,400 
        RECRUIT TRAINING.....................................          14,264           14,264   ...............
        ONE STATION UNIT TRAINING............................          14,909           14,909   ...............
        RESERVE OFFICER TRAINING CORPS (ROTC)................         130,270          131,270           +1,000 
        BASE SUPPORT (ACADEMY ONLY)..........................          72,999           72,999   ...............
        MAINTENANCE OF REAL PROPERTY (ACADEMY ONLY)..........          42,979           42,979   ...............
    BASIC SKILL/ADVANCE TRAINING:                                                                               
        SPECIALIZED SKILL TRAINING...........................         215,964          215,964   ...............
        FLIGHT TRAINING......................................         226,501          226,501   ...............
        PROFESSIONAL DEVELOPMENT EDUCATION...................         192,720          185,020           -7,700 
        TRAINING SUPPORT.....................................         488,799          488,799   ...............
        BASE SUPPORT (OTHER TRAINING)........................         782,265          782,265   ...............
        MAINTENANCE OF REAL PROPERTY (OTHER TRAINING)........         258,927          258,927   ...............
    RECRUITING/OTHER TRAINING:                                                                                  
        RECRUITING AND ADVERTISING...........................         234,154          234,154   ...............
        EXAMINING............................................          71,593           71,593   ...............
        OFF-DUTY AND VOLUNTARY EDUCATION.....................         100,203          100,203   ...............
        CIVILIAN EDUCATION AND TRAINING......................          73,517           73,517   ...............
        JUNIOR ROTC..........................................          73,423           73,423   ...............
        BASE SUPPORT (RECRUITING LEASES).....................         178,496          178,496   ...............
                                                              --------------------------------------------------
          TOTAL, BUDGET ACTIVITY 3...........................       3,235,563        3,227,463           -8,100 
                                                              ==================================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                              
    SECURITY PROGRAMS: SECURITY PROGRAMS.....................         404,340          404,340   ...............
    LOGISTICS OPERATIONS:                                                                                       
        SERVICEWIDE TRANSPORTATION...........................         398,473          398,473   ...............
        CENTRAL SUPPLY ACTIVITIES............................         370,824          370,824   ...............
        LOGISTIC SUPPORT ACTIVITIES..........................         336,403          336,403   ...............
        AMMUNITION MANAGEMENT................................         400,299          400,299   ...............
    SERVICEWIDE SUPPORT:                                                                                        
        ADMINISTRATION.......................................         304,679          305,679           +1,000 
        SERVICEWIDE COMMUNICATIONS...........................         606,379          606,379   ...............
        MANPOWER MANAGEMENT..................................         142,081          142,081   ...............
        OTHER PERSONNEL SUPPORT..............................         150,483          150,483   ...............
        OTHER SERVICE SUPPORT................................         618,384          525,384          -93,000 
        ARMY CLAIMS ACTIVITIES...............................         118,886          118,886   ...............
        REAL ESTATE MANAGEMENT...............................          68,815           68,815   ...............
        BASE SUPPORT.........................................         700,689          700,689   ...............
        COMMISSARY OPERATIONS................................         338,400          338,400   ...............
        MAINTENANCE OF REAL PROPERTY.........................          82,578           88,078           +5,500 
    SUPPORT OF OTHER NATIONS:                                                                                   
        INTERNATIONAL MILITARY HEADQUARTERS..................         227,377          227,377   ...............
        NATO ENLARGEMENT.....................................  ...............  ...............  ...............
        MISC SUPPORT OF OTHER NATIONS........................          37,844           37,844   ...............
                                                              --------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4...........................       5,306,934        5,220,434          -86,500 
                                                              ==================================================
CLASSIFIED PROGRAMS UNDISTRIBUTED............................  ...............          -2,200           -2,200 
CIVILIAN PERSONNEL UNDERSTRENGTH.............................  ...............        -120,000         -120,000 
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE FUND...........         -50,000          -50,000   ...............
FUEL PRICING DIFFERENTIAL....................................  ...............         -36,000          -36,000 
FOREIGN CURRENCY FLUCTUATION.................................  ...............         -81,300          -81,300 
INFORMATION RESOURCE MANAGEMENT..............................  ...............  ...............  ...............
BASE SUPPORT.................................................  ...............         185,000         +185,000 
ECONOMIC ASSUMPTIONS.........................................  ...............  ...............  ...............
TDY EXPENSES.................................................  ...............  ...............  ...............
QDR CIVILIAN PERSONNEL REDUCTIONS............................  ...............  ...............  ...............
NON-BRAC CARETAKER STATUS....................................  ...............  ...............  ...............
MEMORIAL EVENTS..............................................  ...............  ...............  ...............
QUALITY OF LIFE/REAL PROPERTY MAINTENANCE....................  ...............         130,000         +130,000 
                                                              ==================================================
      TOTAL, OPERATION AND MAINTENANCE, ARMY.................      17,223,063       17,212,463          -10,600 
          TRANSFER...........................................         (50,000)         (50,000)  ...............
                                                              --------------------------------------------------
      TOTAL FUNDING AVAILABLE................................     (17,273,063)     (17,262,463)        (-10,600)
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

    Adjustments to the budget activities are as follows:

Budget activity 1: Operating forces:s of dollars]
     250 Ultra lightweight camouflage net system..............      +500
     250 Cold weather boots; 2d ID............................    +2,000
     250 Soldier life support systems.........................    +5,000
     550 Fort Chaffee Training Center.........................    +1,000
Budget activity 3: Training and recruiting:
    1500 Service academies; foreign students..................    -1,400
    1650 Air Battle Captain Program...........................    +1,000
    1950 Foreign military studies; Fort Leavenworth...........      +800
    1950 National Defense University consolidation............    -8,500
Budget activity 4: Administration and servicewide activities:
    3000 Advanced local emergency response team...............    +1,000
    3200 Pentagon renovation transfer.........................   -96,000
    3200 Army conservation and ecosystem management...........    +3,000
    3400 Rock Island bridge repairs...........................    +5,500
Undistributed:
    3710 Classified programs..................................    -2,200
    3715 Civilian personnel underexecution....................  -120,000
    3725 Fuel pricing differential............................   -36,000
    3730 Foreign currency fluctuation.........................   -81,300
    3775 Base support shortfalls..............................  +185,000
    3850 Quality of life, real property maintenance...........  +130,000

                         COMMITTEE ADJUSTMENTS

    Ammunition management.--The Committee commends the 
Department of the Army for its efforts to increase funding for 
ammunition care and maintenance in order to reduce the growing 
backlog developing in conventional munitions sustainment. In 
order to support this effort, the Committee has raised the 
legislated floor to $375,000,000 in fiscal year 1999.
    Fort Chaffee Maneuver Training Center.--The Committee 
recognizes that the Fort Chaffee Maneuver Training Center has 
received heavy usage by both Active and Reserve component units 
since its transfer to the Arkansas National Guard. However, the 
post's long-term viability as a training site is reduced by the 
deteriorating condition of many of its facilities. Therefore, 
the Committee provides $1,000,000 to commence the conversion of 
one of Fort Chaffee's old World War II known distance ranges 
into a remote electronic target system range.
    Domestic preparedness sustainment training.--The Committee 
recognizes the need to provide first responders with long-term 
training, refresher training, and realistic exercises to ensure 
proper preparation for chemical and biological incidents and 
terrorism. The Committee directs the Army to establish a 
Domestic Preparedness Sustainment Training Center in existing 
facilities at the Pine Bluff Arsenal, AR, and further directs 
that the Department of Defense work with the Department of 
Justice and other Federal agencies to incorporate the Domestic 
Preparedness Sustainment Training Center and Pine Bluff 
Arsenal's other unique research, laboratory, and production 
capabilities into national domestic preparedness planning.
    Advanced local emergency response team.--The U.S. Army 
Soldiers and Chemical Biological Command currently provides 
response training to the threat of urban terrorism to 120 
cities nationwide. An advanced local emergency response team 
[ALERT] could demonstrate the feasibility of the current 
training program and provide feedback to the Army for potential 
training modifications. The Committee provides $1,000,000 to 
initiate a pilot program in Charlotte, NC. These funds will 
support the purchase of equipment, support services, 
administrative services, and training.
    AIM XXI.--The Committee has fully funded the Army's depot 
maintenance requirements and directs the Army to give priority 
to the AIM XXI Program.
    Rotary wing aircraft sustainment project.--The Committee 
directs that $3,500,000 may be used for the rotary wing 
aircraft sustainment project at the Corpus Christi Army Depot.
    Air battle captain.--The Committee recommends $1,000,000 
for the Air Battle Captain Program and directs the Army to 
recruit no fewer than 15 ROTC cadets during fiscal year 1999. 
Within this amount, the Committee includes $200,000 
specifically for air battle captain recruitment efforts. The 
Committee is aware that the Army has neglected to recruit 
students for this program and is concerned that this has 
affected the cost effectiveness of the program.
    Hospital renovation.--The Committee recommends that, from 
within the funds allocated for Army maintenance of real 
property, $10,000,000 shall be made available only for 
infrastructure repairs at the Fitzsimmons Army Hospital.
    Walla Walla, WA.--This Committee is aware of the 
longstanding concern regarding deteriorating structures on the 
former Department of Defense site in Walla Walla, WA, which 
have most recently served as the U.S. Army Corps of Engineers' 
district headquarters. Previous Congresses have appropriated 
funds for studies, engineering, and bid documents. The 
Committee urges the Secretary to proceed with the demolition 
project.
    Environmental cleanup at the Rocky Mountain Arsenal, CO.--
The Rocky Mountain Arsenal [RMA] has been the focus of an 
aggressive soil and ground water contamination cleanup program 
since the mid-1980's. The contamination is the result of two 
decades of onsite disposal of hazardous waste associated with 
manufacturing and testing chemical agents and other munitions. 
In addition, portions of the arsenal were leased to Shell Oil 
for the manufacture of pesticides from 1952 to 1987.
    In 1987, RMA was listed on the National Priority List 
[NPL], with the Department of the Army placed in charge of the 
cleanup. The Army and Shell have spent nearly $1,000,000,000 to 
date for cleanup activities at RMA. The actual implementation 
of the remedy is moving forward. The dialog between the parties 
and regulators appears to be productive and the community is 
the beneficiary of oversight by the State of Colorado, U.S. 
Environmental Protection Agency, and tri-county health 
department. The RMA cleanup has become a model for Federal, 
State, and local cooperation when implementing cleanup 
projects, and changes and improvements have already been seen 
by all the parties. The Committee continues to support the RMA 
cleanup project and urges the Department of the Army to ensure 
that this critical cleanup is completed in a timely manner.

                    Operation and Maintenance, Navy

Appropriations, 1998.................................... $21,617,766,000
Budget estimate, 1999...................................  21,877,202,000
Committee recommendation................................  21,813,315,000

    The Committee recommends an appropriation of 
$21,813,315,000. This is $63,887,000 below the budget estimate.

                    SUMMARY OF COMMITTEE ADJUSTMENTS

    Allocations of the Committee adjustments are made for each 
operation and maintenance, Navy funding category identified in 
the Department's O-1 submission. A table showing the budget 
estimate, Committee adjustment, and recommended funding level 
by O-1 category is provided below. Proposed transfers of funds 
within budget activity funding categories in excess of 
$15,000,000 are subject to standard reprogramming procedures.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1999 budget       Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
               OPERATION AND MAINTENANCE, NAVY                                                                  
                                                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                            
    AIR OPERATIONS:                                                                                             
        MISSION AND OTHER FLIGHT OPERATIONS..................       2,089,630        2,142,130          +52,500 
        FLEET AIR TRAINING...................................         751,533          751,533   ...............
        INTERMEDIATE MAINTENANCE.............................          46,925           46,925   ...............
        AIR OPERATIONS AND SAFETY SUPPORT....................          88,459           88,459   ...............
        AIRCRAFT DEPOT MAINTENANCE...........................         735,731          735,731   ...............
        AIRCRAFT DEPOT OPERATIONS SUPPORT....................          20,249           20,249   ...............
        BASE SUPPORT.........................................         772,678          772,678   ...............
        MAINTENANCE OF REAL PROPERTY.........................         283,600          283,600   ...............
        JCS EXERCISES & HEADQUARTERS REDUCTION...............  ...............  ...............  ...............
    SHIP OPERATIONS:                                                                                            
        MISSION AND OTHER SHIP OPERATIONS....................       1,987,873   ...............  ...............
        SHIP OPERATIONAL SUPPORT AND TRAINING................         541,069          541,069   ...............
        INTERMEDIATE MAINTENANCE.............................         388,408          388,408   ...............
        SHIP DEPOT MAINTENANCE...............................       1,947,424        1,977,424          +30,000 
        SHIP DEPOT OPERATIONS SUPPORT........................       1,147,209        1,147,209   ...............
        BASE SUPPORT.........................................         832,789          832,789   ...............
        MAINTENANCE OF REAL PROPERTY.........................         248,601          248,601   ...............
        JCS EXERCISES & HEADQUARTERS REDUCTION...............  ...............  ...............  ...............
    COMBAT OPERATIONS/SUPPORT:                                                                                  
        COMBAT COMMUNICATIONS................................         234,450          234,450   ...............
        ELECTRONIC WARFARE...................................           7,734            7,734   ...............
        SPACE SYSTEMS AND SURVEILLANCE.......................         138,271          138,271   ...............
        WARFARE TACTICS......................................         134,014          140,014           +6,000 
        OPERATIONAL METEOROLOGY AND OCEANOGRAPHY.............         228,159          242,659          +14,500 
        COMBAT SUPPORT FORCES................................         444,072          444,072   ...............
        EQUIPMENT MAINTENANCE................................         170,937          170,937   ...............
        DEPOT OPERATIONS SUPPORT.............................             694              694   ...............
        BASE SUPPORT.........................................         312,259          312,259   ...............
        MAINTENANCE OF REAL PROPERTY.........................          52,603           52,603   ...............
    WEAPONS SUPPORT:                                                                                            
        CRUISE MISSILE.......................................         121,192          121,192   ...............
        FLEET BALLISTIC MISSILE..............................         812,041          812,041   ...............
        IN-SERVICE WEAPONS SYSTEMS SUPPORT...................          61,598           61,598   ...............
        WEAPONS MAINTENANCE..................................         389,469          419,469          +30,000 
        BASE SUPPORT.........................................         119,868          119,868   ...............
        MAINTENANCE OF REAL PROPERTY.........................          31,675           31,675   ...............
    WORKING CAPITAL FUND SUPPORT: NWCF SUPPORT...............          43,300           43,300   ...............
                                                              --------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1...............................      15,184,514       15,317,514         +133,000 
                                                              ==================================================
BUDGET ACTIVITY 2: MOBILIZATION:                                                                                
    READY RESERVE AND PREPOSITIONING FORCES: SHIP                                                               
     PREPOSITIONING AND SURGE................................         428,775          434,775           +6,000 
    ACTIVATIONS/INACTIVATIONS:                                                                                  
        AIRCRAFT ACTIVATIONS/INACTIVATIONS...................             651            8,151           +7,500 
        SHIP ACTIVATIONS/INACTIVATIONS.......................         511,976          511,976   ...............
    MOBILIZATION PREPAREDNESS:                                                                                  
        FLEET HOSPITAL PROGRAM...............................          23,496           23,496   ...............
        INDUSTRIAL READINESS.................................          16,166           16,166   ...............
        COAST GUARD SUPPORT..................................          17,229           17,229   ...............
                                                              --------------------------------------------------
          TOTAL, BUDGET ACTIVITY 2...........................         998,293        1,011,793          +13,500 
                                                              ==================================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                     
    ACCESSION TRAINING:                                                                                         
        OFFICER ACQUISITION..................................          75,643           74,243           -1,400 
        RECRUIT TRAINING.....................................           4,556            4,556   ...............
        RESERVE OFFICERS TRAINING CORPS (ROTC)...............          69,087           69,087   ...............
        BASE SUPPORT.........................................          57,036           57,036   ...............
        MAINTENANCE OF REAL PROPERTY.........................          81,371           81,371   ...............
    BASIC SKILLS AND ADVANCED TRAINING:                                                                         
        SPECIALIZED SKILL TRAINING...........................         237,916          239,916           +2,000 
        FLIGHT TRAINING......................................         315,874          315,874   ...............
        PROFESSIONAL DEVELOPMENT EDUCATION...................          71,780           73,280           +1,500 
        TRAINING SUPPORT.....................................         138,319          138,319   ...............
        BASE SUPPORT.........................................         331,607          331,607   ...............
        MAINTENANCE OF REAL PROPERTY.........................          92,400           92,400   ...............
    RECRUITING, AND OTHER TRAINING AND EDUCATION:                                                               
        RECRUITING AND ADVERTISING...........................         130,415          130,415   ...............
        OFF-DUTY AND VOLUNTARY EDUCATION.....................          74,669           74,669   ...............
        CIVILIAN EDUCATION AND TRAINING......................          37,425           37,425   ...............
        JUNIOR ROTC..........................................          22,830           22,830   ...............
        BASE SUPPORT.........................................             451              451   ...............
        MAINTENANCE OF REAL PROPERTY.........................              61               61   ...............
                                                              --------------------------------------------------
          TOTAL, BUDGET ACTIVITY 3...........................       1,741,440        1,743,540           +2,100 
                                                              ==================================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                              
    SERVICEWIDE SUPPORT:                                                                                        
        ADMINISTRATION.......................................         565,193          533,106          -32,087 
        EXTERNAL RELATIONS...................................          21,456           21,456   ...............
        CIVILIAN MANPOWER AND PERSON MANAGEMENT..............         140,247          140,247   ...............
        MILITARY MANPOWER AND PERSON MANAGEMENT..............         125,125          125,125   ...............
        OTHER PERSONNEL SUPPORT..............................         201,014          201,014   ...............
        SERVICEWIDE COMMUNICATIONS...........................         244,766          246,766           +2,000 
        BASE SUPPORT.........................................         228,046          228,046   ...............
        MAINTENANCE OF REAL PROPERTY.........................          44,827           44,827   ...............
        COMMISSARY OPERATIONS................................         255,000          255,000   ...............
    LOGISTICS OPERATIONS AND TECHNICAL SUPPORT:                                                                 
        SERVICEWIDE TRANSPORTATION...........................         144,245          144,245   ...............
        PLANNING, ENGINEERING AND DESIGN.....................         262,615          262,615   ...............
        ACQUISITION AND PROGRAM MANAGEMENT...................         473,159          473,159   ...............
        AIR SYSTEMS SUPPORT..................................         280,437          280,437   ...............
        HULL, MECHANICAL AND ELECTRICAL SUPPORT..............          55,467           55,467   ...............
        COMBAT/WEAPONS SYSTEMS...............................          41,700           41,700   ...............
        SPACE AND ELECTRONIC WARFARE SYSTEMS.................          72,178           72,178   ...............
        BASE SUPPORT.........................................         219,826          219,826   ...............
        MAINTENANCE OF REAL PROPERTY.........................          40,722           55,722          +15,000 
    SECURITY PROGRAMS:                                                                                          
        SECURITY PROGRAMS....................................         568,257          568,257   ...............
        BASE SUPPORT.........................................           8,814            8,814   ...............
        MAINTENANCE OF REAL PROPERTY.........................           1,426            1,426   ...............
    SUPPORT OF OTHER NATIONS: INTERNATIONAL HEADQUARTERS AND                                                    
     AGENCIES................................................           8,435            8,435   ...............
                                                              --------------------------------------------------
        TOTAL, BUDGET ACTIVITY 4.............................       4,002,955        3,987,868          -15,087 
                                                              ==================================================
CLASSIFIED PROGRAMS UNDISTRIBUTED............................  ...............             500             +500 
INFORMATION RESOURCE MANAGEMENT..............................  ...............  ...............  ...............
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE FUND...........         -50,000          -50,000   ...............
FUEL PRICING DIFFERENTIAL....................................  ...............        -167,000         -167,000 
FOREIGN CURRENCY FLUCTUATION.................................  ...............          -7,900           -7,900 
CIVILIAN PERSONNEL UNDERSTRENGTH.............................  ...............        -106,000         -106,000 
BASE SUPPORT.................................................  ...............          35,000          +35,000 
ENVIRONMENTAL COMPLIANCE.....................................  ...............  ...............  ...............
ECONOMIC ASSUMPTIONS.........................................  ...............  ...............  ...............
OTHER CONTRACTS..............................................  ...............  ...............  ...............
QUALITY OF LIFE/REAL PROPERTY MAINTENANCE....................  ...............          48,000          +48,000 
TDY EXPENSES.................................................  ...............  ...............  ...............
QDR CIVILIAN PERSONNEL REDUCTIONS............................  ...............  ...............  ...............
MAGIC LANTERN................................................  ...............  ...............  ...............
                                                              ==================================================
      TOTAL, OPERATION AND MAINTENANCE, NAVY.................      21,877,202       21,813,315          -63,887 
          TRANSFER...........................................         (50,000)         (50,000)  ...............
                                                              --------------------------------------------------
      TOTAL FUNDING AVAILABLE................................     (21,927,202)     (21,863,315)        (-63,887)
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

    Adjustments to the budget activities are as follows:

Budget activity 1: Operating forces:s of dollars]
    4400 ALQ-165; maintenance and repair......................    +9,000
    4400 Flying Hour Program shortfalls.......................   +43,500
    5000 Ship depot maintenance...............................   +16,000
    5000 Shipyard Apprentice Program..........................   +14,000
    5400 PMRF.................................................    +6,000
    5450 Navy Meteorology and Oceanography Command............    +7,000
    5450 National Oceanography Partnering Program.............    +7,500
    5950 Tomahawk recertification.............................   +15,000
    5950 Mk-45 overhaul line..................................   +10,000
    5950 CIWS overhaul........................................    +5,000
Budget activity 2: Mobilization:
    6350 Dredging to support inactive Reserve fleet...........    +6,000
    6450 Ship disposal initiative.............................    +7,500
Budget activity 3: Training and recruiting:
    6900 Service academies; foreign students..................    -1,400
    7200 NELP.................................................    +2,000
    7300 Experimental MBA Program.............................    +1,500
Budget activity 4: Administration and servicewide activities:
    8000 Pentagon renovation transfer.........................   -32,087
    8250 NISE-East............................................    +2,000
    8900 Adak facilities remediation and disposal.............   +15,000
Undistributed:
    9360 Classified programs..................................      +500
    9375 Fuel pricing differential............................  -167,000
    9380 Foreign currency fluctuation.........................    -7,900
    9390 Civilian personnel underexecution....................  -106,000
    9395 Base support shortfalls..............................   +35,000
    9425 Quality of life, real property maintenance...........   +48,000

                         COMMITTEE ADJUSTMENTS

                     O&M SUPPORT OF MILITARY FORCES

    Barrow landfill.--Of the funds provided in this account, 
the Committee directs the Department of the Navy to provide 
$2,500,000 for costs associated with the closure of the Barrow 
landfill. The Department of Defense sited, developed, and 
managed this landfill for 31 years, with the Naval Arctic 
Research Laboratory located at Barrow as the primary user of 
the facility. The Committee urges the Department of Defense to 
work with the North Slope Borough in closing the landfill and 
determining continuing funding responsibilities. These funds 
should be provided to the appropriate local government entity.
    Shipyard Apprenticeship Program.--The Committee recommends 
an increase of $14,000,000 to establish a new Shipyard 
Apprenticeship Program at the public shipyards. The downsizing 
over the past decade at our Navy shipyards has increased the 
average age of the shipyard worker to nearly 45 years, and 
limited the ability of Navy managers to hire new apprentices. 
The Committee believes this matter requires immediate attention 
and directs that the Navy initiate a program within the next 90 
days to address the aging work force at all four public 
shipyards. Funds have been added to augment working capital 
funds and other resources to ensure that this program is not 
forced to compete with depot maintenance requirements. The 
Committee expects these funds shall only be used to hire new 
apprentices, and that the funding provided shall be in addition 
to any other resources requested in the budget for work force 
revitalization. The Committee directs the Navy to report to the 
Appropriations Committees by April 1, 1999, on the 
implementation of this program, by shipyard.
    Lift bridge repair.--From within the amounts provided for 
real property maintenance and minor construction, $17,500,000 
shall be available only for repair and refurbishment of the 
lift bridge providing access to the former Philadelphia Navy 
Shipyard.
    Shipyard infrastructure repairs.--The Committee recommends 
that within the funds allocated for Navy maintenance of real 
property, $15,000,000 shall be used only for infrastructure 
repairs at the Charleston Naval Shipyard.
    Pacific Missile Range facility [PMRF].--The Committee 
recommends $40,222,0000 for operations at PMRF, an increase of 
$6,000,000 above the budget, to account for shortfalls in the 
request. The amount recommended is $6,196,000 less than 
provided for fiscal year 1998. A consolidated contract for 
range and base operations is expected to generate significant 
savings in the cost of operations at the range in the coming 
year. The Committee expects that additional funding will be 
made available to support range and base operations 
requirements if contract costs exceed current expectations.

                Operation and Maintenance, Marine Corps

Appropriations, 1998....................................  $2,372,635,000
Budget estimate, 1999...................................   2,523,703,000
Committee recommendation................................   2,576,190,000

    The Committee recommends an appropriation of 
$2,576,190,000. The recommendation is $52,487,000 above the 
budget request.

                    SUMMARY OF COMMITTEE ADJUSTMENTS

    Allocations of the Committee adjustments are made for each 
operation and maintenance, Marine Corps funding category 
identified in the Department's O-1 submission. A table showing 
the budget estimate, Committee adjustment, and recommended 
funding level by O-1 category is provided below. Proposed 
transfers of funds within budget activity funding categories in 
excess of $15,000,000 are subject to standard reprogramming 
procedures.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
             OPERATION AND MAINTENANCE, MARINE CORPS                                                            
                                                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                            
    EXPEDITIONARY FORCES:                                                                                       
        OPERATIONAL FORCES......................................         375,531         389,831         +14,300
        FIELD LOGISTICS.........................................         221,693         221,693  ..............
        DEPOT MAINTENANCE.......................................          78,713          78,713  ..............
        BASE SUPPORT............................................         692,716         692,716  ..............
        MAINTENANCE OF REAL PROPERTY............................         292,216         292,216  ..............
        JCS EXERCISES & HEADQUARTERS REDUCTION..................  ..............  ..............  ..............
    USMC PREPOSITIONING:                                                                                        
        MARITIME PREPOSITIONING.................................          81,325          81,325  ..............
        NORWAY PREPOSITIONING...................................           4,328           4,328  ..............
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..............................       1,746,522       1,760,822         +14,300
                                                                 ===============================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                     
    ACCESSION TRAINING:                                                                                         
        RECRUIT TRAINING........................................          10,202          10,202  ..............
        OFFICER ACQUISITION.....................................             289             289  ..............
        BASE SUPPORT............................................          53,526          53,526  ..............
        MAINTENANCE OF REAL PROPERTY............................          17,292          17,292  ..............
    BASIC SKILLS AND ADVANCED TRAINING:                                                                         
        SPECIALIZED SKILLS TRAINING.............................          28,269          28,269  ..............
        FLIGHT TRAINING.........................................             161             161  ..............
        PROFESSIONAL DEVELOPMENT EDUCATION......................           6,478           6,478  ..............
        TRAINING SUPPORT........................................          81,338          88,338          +7,000
        BASE SUPPORT............................................          55,771          55,771  ..............
        MAINTENANCE OF REAL PROPERTY............................          24,009          24,009  ..............
    RECRUITING AND OTHER TRAINING EDUCATION:                                                                    
        RECRUITING AND ADVERTISING..............................          80,798          80,798  ..............
        OFF-DUTY AND VOLUNTARY EDUCATION........................          15,016          15,016  ..............
        JUNIOR ROTC.............................................           9,201           9,201  ..............
        BASE SUPPORT............................................           8,496           8,496  ..............
        MAINTENANCE OF REAL PROPERTY............................           2,440           2,440  ..............
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 3..............................         393,286         400,286          +7,000
                                                                 ===============================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                              
    SERVICEWIDE SUPPORT:                                                                                        
        SPECIAL SUPPORT.........................................         224,668         215,155          -9,513
        SERVICEWIDE TRANSPORTATION..............................          29,630          29,630  ..............
        ADMINISTRATION..........................................          26,509          26,509  ..............
        BASE SUPPORT............................................          14,557          14,557  ..............
        MAINTENANCE OF REAL PROPERTY............................           1,931           1,931  ..............
        COMMISSARY OPERATIONS...................................          86,600          86,600  ..............
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..............................         383,895         374,382          -9,513
                                                                 ===============================================
FOREIGN CURRENCY FLUCTUATION....................................  ..............          -2,300          -2,300
FUEL PRICING DIFFERENTIAL.......................................  ..............          -8,000          -8,000
REAL PROPERTY MAINTENANCE.......................................  ..............  ..............  ..............
ECONOMIC ASSUMPTIONS............................................  ..............  ..............  ..............
QDR CIVILIAN PERSONNEL REDUCTIONS...............................  ..............  ..............  ..............
BASE SUPPORT....................................................  ..............          15,000         +15,000
QUALITY OF LIFE/REAL PROPERTY MAINTENANCE.......................  ..............          36,000         +36,000
CIVILIAN PERSONNEL UNDEREXECUTION...............................  ..............  ..............  ..............
TDY EXPENSES....................................................  ..............  ..............  ..............
                                                                 ===============================================
      TOTAL, OPERATION AND MAINTENANCE, MARINE CORPS............       2,523,703       2,576,190         +52,487
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

    Adjustments to the budget activities are as follows:

Budget activity 1: Operating forces:s of dollars]
    10050 Initial issue gear..................................   +12,600
    10050 NBC defense equipment...............................    +1,700
Budget activity 3: Training and recruiting:
    11000 Distance learning...................................    +7,000
Budget activity 4: Administration and servicewide activities:
    11650 Pentagon renovation transfer........................    -9,513
Undistributed:
    11915 Foreign currency fluctuation........................    -2,300
    11920 Fuel pricing differential...........................    -8,000
    11945 Base support shortfalls.............................   +15,000
    11950 Quality of life, real property maintenance..........   +36,000

                  Operation and Maintenance, Air Force

Appropriations, 1998.................................... $18,492,883,000
Budget estimate, 1999...................................  19,127,004,000
Committee recommendation................................  19,073,141,000

    The Committee recommends an appropriation of 
$19,073,141,000. This is $53,863,000 below the budget estimate.

                    SUMMARY OF COMMITTEE ADJUSTMENTS

    Allocations of the Committee adjustments are made for each 
operation and maintenance, Air Force funding category 
identified in the Department's O-1 submission. A table showing 
the budget estimate, Committee adjustment, and recommended 
funding level by O-1 category is provided below. Proposed 
transfers of funds within budget activity funding categories in 
excess of $15,000,000 are subject to standard reprogramming 
procedures.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1999 budget       Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
             OPERATION AND MAINTENANCE, AIR FORCE                                                               
                                                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                            
    AIR OPERATIONS:                                                                                             
        PRIMARY COMBAT FORCES................................       2,311,299        2,461,399         +150,100 
        PRIMARY COMBAT WEAPONS...............................         236,147          234,347           -1,800 
        COMBAT ENHANCEMENT FORCES............................         196,036          196,036   ...............
        AIR OPERATIONS TRAINING..............................         562,839          567,939           +5,100 
        DEPOT MAINTENANCE....................................       1,022,087        1,022,087   ...............
        COMBAT COMMUNICATIONS................................         958,706          958,706   ...............
        BASE SUPPORT.........................................       1,538,126        1,538,126   ...............
        MAINTENANCE OF REAL PROPERTY.........................         575,656          575,656   ...............
        JCS EXERCISES & HEADQUARTERS REDUCTION...............  ...............  ...............  ...............
    COMBAT RELATED OPERATIONS:                                                                                  
        GLOBAL C\3\I AND EARLY WARNING.......................         669,379          669,379   ...............
        NAVIGATION/WEATHER SUPPORT...........................         118,337          118,337   ...............
        OTHER COMBAT OPS SUPPORT PROGRAMS....................         221,593          221,593   ...............
        JCS EXERCISES........................................          30,521           30,521   ...............
        MANAGEMENT/OPERATIONAL HEADQUARTERS..................         117,540          117,540   ...............
        TACTICAL INTEL AND OTHER SPECIAL ACTIVITIES..........         227,980          227,980   ...............
    SPACE OPERATIONS:                                                                                           
        LAUNCH FACILITIES....................................         221,046          216,046           -5,000 
        LAUNCH VEHICLES......................................         102,064          102,064   ...............
        SPACE CONTROL SYSTEMS................................         246,940          257,940          +11,000 
        SATELLITE SYSTEMS....................................          36,152           36,152   ...............
        OTHER SPACE OPERATIONS...............................          85,292           90,292           +5,000 
        BASE SUPPORT.........................................         309,406          309,406   ...............
        MAINTENANCE OF REAL PROPERTY.........................         122,525          122,525   ...............
                                                              --------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1...........................       9,909,671       10,074,071         +164,400 
                                                              ==================================================
BUDGET ACTIVITY 2: MOBILIZATION:                                                                                
    MOBILITY OPERATIONS:                                                                                        
        AIRLIFT OPERATIONS...................................       1,326,774        1,326,774   ...............
        AIRLIFT OPERATIONS C\3\I.............................          21,676           21,676   ...............
        MOBILIZATION PREPAREDNESS............................         134,807          144,807          +10,000 
        DEPOT MAINTENANCE....................................         316,485          316,485   ...............
        PAYMENTS TO TRANSPORTATION BUSINESS AREA.............         470,000          470,000   ...............
        BASE SUPPORT.........................................         390,876          390,876   ...............
        MAINTENANCE OF REAL PROPERTY.........................         148,331          148,331   ...............
                                                              --------------------------------------------------
          TOTAL, BUDGET ACTIVITY 2...........................       2,808,949        2,818,949          +10,000 
                                                              ==================================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                     
    ACCESSION TRAINING:                                                                                         
        OFFICER ACQUISITION..................................          57,679           56,279           -1,400 
        RECRUIT TRAINING.....................................           4,360            4,360   ...............
        RESERVE OFFICER TRAINING CORPS (ROTC)................          46,522           46,522   ...............
        BASE SUPPORT (ACADEMIES ONLY)........................          58,828           58,828   ...............
        MAINTENANCE OF REAL PROPERTY (ACADEMIES ONLY)........          37,655           37,655   ...............
    BASIC SKILLS AND ADVANCED TRAINING:                                                                         
        SPECIALIZED SKILL TRAINING...........................         215,477          215,477   ...............
        FLIGHT TRAINING......................................         406,940          406,940   ...............
        PROFESSIONAL DEVELOPMENT EDUCATION...................          90,709           90,709   ...............
        TRAINING SUPPORT.....................................          65,742           65,742   ...............
        DEPOT MAINTENANCE....................................          12,186           12,186   ...............
        BASE SUPPORT (OTHER TRAINING)........................         370,961          370,961   ...............
        MAINTENANCE OF REAL PROPERTY (OTHER TRAINING)........         102,238          102,238   ...............
    RECRUITING, AND OTHER TRAINING AND EDUCATION:                                                               
        RECRUITING AND ADVERTISING...........................          54,775           54,775   ...............
        EXAMINING............................................           2,668            2,668   ...............
        OFF DUTY AND VOLUNTARY EDUCATION.....................          84,122           84,122   ...............
        CIVILIAN EDUCATION AND TRAINING......................          61,124           61,124   ...............
        JUNIOR ROTC..........................................          26,557           26,557   ...............
                                                              --------------------------------------------------
          TOTAL, BUDGET ACTIVITY 3...........................       1,698,543        1,697,143           -1,400 
                                                              ==================================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                              
    LOGISTICS OPERATIONS:                                                                                       
        LOGISTICS OPERATIONS.................................         706,893          706,893   ...............
        TECHNICAL SUPPORT ACTIVITIES.........................         389,685          389,685   ...............
        SERVICEWIDE TRANSPORTATION...........................         196,178          196,178   ...............
        DEPOT MAINTENANCE....................................          69,344           69,344   ...............
        BASE SUPPORT.........................................         916,165          916,165   ...............
        MAINTENANCE OF REAL PROPERTY.........................         257,685          257,685   ...............
    SERVICEWIDE ACTIVITIES:                                                                                     
        ADMINISTRATION.......................................         140,879          140,879   ...............
        SERVICEWIDE COMMUNICATIONS...........................         234,065          234,065   ...............
        PERSONNEL PROGRAMS...................................         127,718          127,718   ...............
        RESCUE AND RECOVERY SERVICES.........................          48,466           48,466   ...............
        ARMS CONTROL.........................................          30,005           30,005   ...............
        OTHER SERVICEWIDE ACTIVITIES.........................         517,780          465,580          -52,200 
        OTHER PERSONNEL SUPPORT..............................          31,828           31,828   ...............
        CIVIL AIR PATROL CORPORATION.........................          13,927           23,964          +10,037 
        COMMISSARY OPERATIONS................................         302,071          302,071   ...............
        BASE SUPPORT.........................................         180,221          180,221   ...............
        MAINTENANCE OF REAL PROPERTY.........................          26,067           26,067   ...............
    SECURITY PROGRAMS: SECURITY PROGRAMS.....................         557,256          557,256   ...............
    SUPPORT TO OTHER NATIONS: INTERNATIONAL SUPPORT..........          13,608           13,608   ...............
                                                              --------------------------------------------------
        TOTAL, BUDGET ACTIVITY 4.............................       4,759,841        4,717,678          -42,163 
                                                              ==================================================
CLASSIFIED PROGRAMS UNDISTRIBUTED............................  ...............          -1,000           -1,000 
CIVILIAN PERSONNEL UNDERSTRENGTH.............................  ...............         -83,600          -83,600 
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE FUND...........         -50,000          -50,000   ...............
FUEL PRICING DIFFERENTIAL....................................  ...............        -176,000         -176,000 
FOREIGN CURRENCY FLUCTUATION/BUDGET AMEND....................  ...............         -19,200          -19,200 
INFORMATION RESOURCE MANAGEMENT..............................  ...............          10,100          +10,100 
BASE SUPPORT.................................................  ...............          35,000          +35,000 
ECONOMIC ASSUMPTIONS.........................................  ...............  ...............  ...............
OTHER CONTRACTS..............................................  ...............  ...............  ...............
CHEMICAL/BIOLOGICAL DEFENSE--PACOM...........................  ...............  ...............  ...............
QUALITY OF LIFE/REAL PROPERTY MAINTENANCE....................  ...............          50,000          +50,000 
TDY EXPENSES.................................................  ...............  ...............  ...............
QDR--CIVLIAN PERSONNEL REDUCTIONS............................  ...............  ...............  ...............
                                                              ==================================================
      TOTAL, O&M, AIR FORCE..................................      19,127,004       19,073,141          -53,863 
          TRANSFER...........................................         (50,000)         (50,000)  ...............
                                                              --------------------------------------------------
      TOTAL FUNDING AVAILABLE................................     (19,177,004)     (19,123,141)        (-53,863)
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

    Adjustments to the budget activities are as follows:

Budget activity 1: Operating forces:s of dollars]
    12600 Flying hour shortfalls..............................  +110,000
    12600 B-52 attrition reserve..............................   +40,100
    12650 LANTIRN PMA Office..................................    -1,800
    12750 Combat training ranges..............................    +5,100
    13350 Maintenance of Delta-1/Delta-9 facilities...........    +5,000
    13350 Test launch delays..................................   -10,000
    13450 SPACECOM operations.................................   +11,000
    13550 University partnering for operational support.......    +5,000
Budget activity 2: Mobilization:
    13950 War reserve materials...............................   +10,000
Budget activity 3: Training and recruiting:
    14300 Service academies; foreign students.................    -1,400
Budget activity 4: Administration and servicewide activities:
    15950 Pentagon renovation transfer........................   -52,200
    16050 CAP Corporation.....................................   +10,037
Undistributed:
    16410 Classified programs.................................    -1,000
    16415 Civilian personnel underexecution...................   -83,600
    16425 Fuel pricing differential...........................  -176,000
    16430 Foreign currency fluctuation........................   -19,200
    16475 REMIS...............................................   +10,100
    16480 Base support shortfalls.............................   +35,000
    16505 Quality of life, real property maintenance..........   +50,000

                     O&M SUPPORT OF MILITARY FORCES

    Combat ranges.--Prior to obligating or expending any of the 
additional funds provided for combat training ranges, the 
Secretary of the Air Force shall provide a written report to 
the Senate Appropriations Committee detailing the plan for 
distribution of these funds to the various range facilities.
    B-52 attrition reserve aircraft.--The Committee directs 
that this funding be used to operate and maintain the current 
force structure of 94 B-52's and to continue standard 
maintenance and upgrades on the attrition reserve aircraft. 
Additionally, the Committee directs the Air Force to treat all 
94 B-52's now in the force structure as aircraft to be retained 
for the 6-year period beginning October 1, 1998.
    CINC support aircraft.--The Committee recognizes the 
challenges facing the Department due to the age, excessive 
support costs, and operational restrictions of the C-137 and C-
135 aircraft fleets. The Committee understands the Department 
has considered several options to address the lack of reliable, 
affordable, and appropriate aircraft assets to meet these 
requirements. Current mission needs and resources do not 
support dedicated, large, intercontinental support aircraft for 
each regional Commander in Chief [CINC]. The Committee 
especially rejects, and opposes any funding for the conversion 
of operational air refueling tanker aircraft for the CINC 
support mission.
    The Committee directs that the Deputy Secretary of Defense 
and the Vice Chairman of the Joint Chiefs implement the 
consolidation of all existing CINC support aircraft into a 
centrally managed pool, dispersed to key geographic locations. 
These aircraft should be available to support all departmental 
missions and requirements, not reserved for the use of a single 
headquarters. Allocation of aircraft assets should be made on a 
mission priority basis, irrespective of regional location. This 
plan should be presented to the congressional defense 
committees not later than March 1, 1999.
    The Committee includes funds in the procurement title of 
this bill to purchase two new C-37A aircraft to immediately 
address the need for aircraft replacement. These smaller 
aircraft, with drastically lower operation and support costs, 
will better meet the mission requirement for CINC 
transportation. These aircraft should be modified to the 
minimum level, remaining fairly common with similar aircraft 
serving similar purposes in the commercial marketplace. This 
approach ensures that the Department can recover a portion of 
this investment if the aircraft are subsequently replaced, or 
if leasing of such support aircraft can be initiated.
    One of the new aircraft should be deployed to MacDill Air 
Force Base as part of the pool to support the Southern, 
Central, Special Operations Forces and Atlantic Commands. The 
second new aircraft should be deployed to Hickam Air Force Base 
as part of the pool to support the Pacific Command--including 
Korea, the Pacific Air Forces, the Pacific Fleet, and U.S. Army 
Pacific. The plan presented by the Deputy Secretary of Defense 
and the Vice Chairman of the Joint Chiefs should address any 
additional requirement for replacement aircraft, and the 
deployment sites for the entire support fleet.
    C-130J schoolhouse training.--The Committee endorses the 
Air Force's decision to keep C-130 schoolhouse training 
centralized in the C-130 formal training unit [FTU] at Little 
Rock AFB, AR. Subsequently, the Committee directs the Air Force 
to examine the viability of basing C-130J's at Little Rock Air 
Force Base and implementing the C-130J schoolhouse training 
there and to report their findings to the Committee not later 
than February 1, 1999.
    Air Force Plant No. 34, Tulsa, OK.--The Committee commends 
the Department of the Air Force for the expeditious obligation 
of environmental cleanup funds for the ground contamination 
present at the facility as directed by the Committee in fiscal 
year 1998. The Committee, however, remains concerned about 
other environmental contamination present onsite, particularly 
in the above-ground structures. The Committee directs the 
Secretary of the Air Force to investigate these hazards and 
report on these risks to the congressional defense committees 
no later than March 1, 1999. The report should also include a 
detailed obligation schedule that fully addresses these 
concerns before the actual title transfer to the city of Tulsa.
    Radioactive iodine experimentation.--The Committee strongly 
encourages the Air Force to equitably and expeditiously resolve 
the pending claim filed on behalf of the Inupiat Eskimos who 
were subjected to radioactive iodine 131 experimentation by the 
Air Force in the mid-1950's. These Alaskan Natives were used as 
experimental subjects without informed consent by the Arctic 
Aeromedical Laboratory.

                        other air force programs

    Civil Air Patrol.--The Committee directs the Secretary of 
the Air Force to provide the following amounts for the Civil 
Air Patrol:

CAP operations:
    O&M.................................................     $20,654,000
    Procurement.........................................       4,941,000
    Counternarcotics....................................       3,715,000

    The amounts delineated above are $10,037,000 above the 
amount requested by the Air Force for Civil Air Patrol 
requirements.
    The Committee understands that the Air Force has been 
reviewing the question of the impact, if any, of the Federal 
Grant and Cooperative Agreement Act of 1977 to the Air Force's 
funding of the Civil Air Patrol. The Committee directs the Air 
Force to discontinue its efforts to implement changes to 
funding policies and procedures for the Civil Air Patrol, 
including application of the Federal Grant and Cooperative 
Agreement Act of 1977, so Congress can fully review the impact 
of these proposed changes. The Committee further directs that 
the Air Force and the Civil Air Patrol submit a joint report on 
possible improvements to funding policies and procedures to the 
Committee no later than December 1, 1998.

                Operation and Maintenance, Defense-Wide

Appropriations, 1998.................................... $10,369,740,000
Budget estimate, 1999...................................  10,750,601,000
Committee recommendation................................  10,259,231,000

    The Committee recommends an appropriation of 
$10,259,231,000. This is $491,370,000 below the budget 
estimate.

                    SUMMARY OF COMMITTEE ADJUSTMENTS

    Allocations of the Committee adjustments are made for each 
operation and maintenance, Defense-wide funding category 
identified in the Department's O-1 submission. A table showing 
the budget estimate, Committee adjustment, and recommended 
funding level by O-1 category is provided below. Proposed 
transfers of funds within budget activity funding categories in 
excess of $15,000,000 are subject to standard reprogramming 
procedures.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
             OPERATION AND MAINTENANCE, DEFENSE-WIDE                                                            
                                                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                            
    JOINT CHIEFS OF STAFF.......................................         410,065         417,065          +7,000
    SPECIAL OPERATIONS COMMAND..................................       1,149,328  ..............      -1,149,328
                                                                 -----------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................................       1,559,393         417,065      -1,142,328
                                                                 ===============================================
BUDGET ACTIVITY 2: MOBILIZATION: DEFENSE LOGISTICS AGENCY.......          38,934          38,934  ..............
                                                                 ===============================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                     
    DEFENSE ACQUISITION UNIVERSITY..............................  ..............  ..............  ..............
    AMERICAN FORCES INFORMATION SERVICE.........................          11,059          11,059  ..............
    DEFENSE HUMAN RESOURCES FIELD ACTIVITY......................  ..............  ..............  ..............
    DEFENSE SPECIAL WEAPONS AGENCY..............................  ..............  ..............  ..............
    SPECIAL OPERATIONS COMMAND..................................          42,408  ..............         -42,408
                                                                 -----------------------------------------------
      TOTAL, BUDGET ACTIVITY 3..................................          53,467          11,059         -42,408
                                                                 ===============================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                              
    AMERICAN FORCES INFORMATION SERVICE.........................          93,815          93,595            -220
    CIVIL MILITARY PROGRAMS.....................................          44,894          88,394         +43,500
    CLASSIFIED AND INTELLIGENCE.................................       3,803,561       3,767,161         -36,400
    DEFENSE CONTRACT AUDIT AGENCY...............................         330,087         330,087  ..............
    DEFENSE FINANCE AND ACCOUNTING SERVICE......................          83,277          83,277  ..............
    DEFENSE HUMAN RESOURCES ACTIVITY............................         198,923         192,923          -6,000
    DEFENSE INFORMATION SYSTEMS AGENCY..........................         771,106         763,706          -7,400
    DEFENSE INVESTIGATIVE SERVICE...............................  ..............  ..............  ..............
    DEFENSE LEGAL SERVICES AGENCY...............................           9,027           9,027  ..............
    DEFENSE LOGISTICS AGENCY....................................       1,140,137       1,153,137         +13,000
    PROCUREMENT TECHNICAL ASSISTANCE PROGRAM....................  ..............          17,000         +17,000
    DEFENSE POW/MISSING PERSONS OFFICE..........................          14,110          14,110  ..............
    DEFENSE SECURITY ASSISTANCE AGENCY..........................           4,610           4,610  ..............
    DEFENSE SECURITY SERVICE....................................          83,419          83,419  ..............
    DEFENSE SPECIAL WEAPONS AGENCY..............................  ..............  ..............  ..............
    DEFENSE SUPPORT ACTIVITIES..................................  ..............  ..............  ..............
    DEFENSE TECHNOLOGY SECURITY ADMINISTRATION..................  ..............  ..............  ..............
    DEFENSE THREAT REDUCTION AND TREATY COMPLIANCE AGENCY.......         304,745         251,445         -53,300
    DEPARTMENT OF DEFENSE DEPENDENTS EDUCATION..................       1,347,718       1,348,118            +400
    FEDERAL ENERGY MANAGEMENT PROGRAM...........................  ..............  ..............  ..............
    JOINT CHIEFS OF STAFF.......................................         139,616         112,716         -26,900
    OFFICE OF ECONOMIC ADJUSTMENT...............................          31,233          31,233  ..............
    OFFICE OF THE SECRETARY OF DEFENSE..........................         369,836         375,836          +6,000
    OFFICE OF THE SECRETARY OF DEFENSE (NO YEAR)................  ..............  ..............  ..............
    ON SITE INSPECTION AGENCY...................................  ..............  ..............  ..............
    SPECIAL OPERATIONS COMMAND..................................          47,117  ..............         -47,117
    WASHINGTON HEADQUARTERS SERVICE.............................         281,676         224,376         -57,300
    REPAIRS TO FEDERALLY-FUNDED SCHOOLS.........................  ..............          10,000         +10,000
                                                                 -----------------------------------------------
      TOTAL, BUDGET ACTIVITY 4..................................       9,098,907       8,954,170        -144,737
                                                                 ===============================================
BUDGET ACTIVITY 5: SPECIAL OPERATIONS COMMAND...................  ..............       1,252,503      +1,252,503
                                                                 ===============================================
LEGACY..........................................................  ..............          10,000         +10,000
CIVILIAN PERSONNEL UNDERSTRENGTH................................  ..............        -349,000        -349,000
FOREIGN CURRENCY FLUCTUATION....................................  ..............          -8,500          -8,500
FUEL PRICING DIFFERENTIAL.......................................  ..............         -67,000         -67,000
ECONOMIC ASSUMPTIONS............................................  ..............  ..............  ..............
INFORMATION RESOURCE MANAGEMENT.................................  ..............  ..............  ..............
PENTAGON RENOVATION SWING SPACE.................................  ..............  ..............  ..............
DEFENSE AUTOMATED PRINTING SERVICE..............................  ..............  ..............  ..............
QDR--6% REDUCTION...............................................  ..............  ..............  ..............
UNSPECIFIED REDUCTION...........................................            -100  ..............            +100
                                                                 ===============================================
      TOTAL, OPERATION AND MAINTENANCE, DEFENSE-WIDE............      10,750,601      10,259,231        -491,370
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

    Adjustments to the budget activities are as follows:

Budget activity 1: Operating forces:s of dollars]
    17050 Exercise Northern Edge..............................    +7,000
Budget activity 4: Administration and servicewide activities:
    17750 AFIS; Pentagon renovation transfer..................      -220
    17755 Civil-military programs.............................   +43,500
    17800 Classified programs.................................   -36,400
    18000 Human resources field activity consolidation........    -6,000
    18050 DISA; joint spectrum transfer.......................    -1,800
    18050 Pentagon renovation transfer........................    -5,600
    18200 DLA; automated data conversion system...............   +30,000
    18200 Procurement Technical Assistance Program [PTAP] 
      transfer................................................   -17,000
    18250 PTAP................................................   +17,000
    18475 DTRA; consolidation efficiencies....................   -27,400
    18475 Partnership For Peace; excessive growth.............   -15,400
    18475 PFP information management systems [PIMS]...........    +3,000
    18475 Treaty implementation delays........................   -13,500
    18500 DODDS Math Teacher Leadership Program...............      +400
    18600 JCS; Pentagon renovation transfer...................   -26,900
    18700 OSD; travel and other administration growth.........    -4,000
    18700 New Parent Support Program..........................   +10,000
    18900 WHS; Pentagon renovation transfer...................   -41,300
    18900 Pentagon renovation transfer--other agencies........   -16,000
    18920 Repairs to federally funded schools.................   +10,000
Budget activity 5: Special Operations Command:
           Maritime training..................................    +5,000
           CPRO training......................................    +7,650
           Language training..................................    +1,000
Undistributed:
    18960 Legacy..............................................   +10,000
    18970 Civilian personnel underexecution...................  -349,000
    18975 Foreign currency fluctuation........................    -8,500
    18980 Fuel pricing differential...........................   -67,000

                         COMMITTEE ADJUSTMENTS

    Northern Edge Joint Training and Exercise Program.--The 
Committee provides $7,000,000 for the U.S. Pacific Command's 
Northern Edge Joint Training and Exercise Program. This 
exercise program supports a series of joint and combined 
military exercises and training in the north Pacific region. 
Training scenarios range from military operations other than 
war to large-scale theater warfare.
    Defense Threat Reduction and Treaty Compliance Agency.--The 
Committee acknowledges the need confirmed by the defense reform 
initiative [DRI] to reduce the significant overlap and 
duplication of effort by the numerous organizations which were 
recently consolidated into this new agency. However, the 
savings estimated by the Department is considered to be overly 
conservative, considering the substantial number of 
assimilations and functional transfers, and reduces funding by 
$27,400,000. The Committee has also reduced funding by 
$13,500,000 as a result of expected delays in treaty 
implementation and scheduled inspections.
    Procurement Technical Assistance Program [PTAP].--The 
Committee commends the Department for including the Procurement 
Technical Assistance Program funding in this year's budget 
request and subsequently provides full funding for this 
worthwhile initiative. The Committee directs that PTAP be 
designated as a separate special interest program, with written 
approval by the Appropriations Committees required prior to any 
below-threshold reprogramming from this line.
    Partnership for Peace Program.--The Committee notes that 
the budget submission for the Partnership for Peace Program has 
increased by more than 22 percent over the fiscal year 1998 
level. This growth is considered excessive, in light of the 
difficult funding choices being faced in the readiness accounts 
of the active forces. Of the funds recommended by the 
Committee, $3,000,000 has been provided for the PFP information 
management system [PIMS].

                         other defense programs

    Legacy Program.--The Committee provides $10,000,000 for 
continuation of the Legacy Program. The Department is expected 
to program adequate funding for this program in fiscal year 
1999.
    Charleston Macalloy site.--The Committee notes the history 
of the Defense Logistics Agency [DLA] inventory location 429 
(Macalloy site), Charleston, SC, and its manufacture of the 
alloy, ferrochromium, for the Department of Defense. A 
remediation plan for this site is currently being developed 
which will address both Federal and State environmental issues 
associated with chromium pollutants. The Committee directs the 
Department to determine whether this site is eligible under the 
formerly used defense sites [FUDS] project criteria and report 
to the congressional defense committees by February 1, 1999, on 
the results of this assessment.
    Security locks.--Federal specification FF-L-2740A was 
established by the Inter-Agency Committee on Security Equipment 
as the standard for providing secure protection of sensitive 
classified material. The Committee has supported the Department 
of Defense's efforts to retrofit existing containers with 
security locks that conform to this specification and the 
Department's procurement of new conforming containers. However, 
the Committee is concerned that sensitive classified material 
in the possession of defense contractors is not subject to the 
same protection. While new containers purchased by defense 
contractors must have locks which meet or exceed this 
specification, there remain a number of older containers which 
fall below the prescribed standard.
    The Committee, therefore, directs the Under Secretary of 
Defense for Acquisition and Technology to report to the defense 
committees on the DOD plan to ensure that defense contractors 
in possession of classified material retrofit all security 
containers which do not have security locks which meet Federal 
specification FF-L-2740A, no later than December 15, 1998.
    Community retraining, reinvestment, and manufacturing 
initiative.--The Department is directed to make available, from 
existing funds, up to $8,000,000 for a community retraining, 
reinvestment, and manufacturing initiative to be conducted by 
an academic consortia with existing programs in manufacturing 
and retraining.

                        CIVIL-MILITARY PROGRAMS

    The Committee continues to support the Department's civil-
military programs and provides a total of $88,394,000 for 
fiscal year 1999 as follows:

                        [In thousands of dollars]

Youth Challenge Program.......................................    62,394
Innovative readiness training.................................    20,000
Starbase Youth Program........................................     6,000
                        -----------------------------------------------------------------
                        ________________________________________________
      Total...................................................    88,394

    The Committee directs the Department to report to the 
Committees on Appropriations on the status of the obligation of 
these funds not later than February 15, 1999.
    Innovative readiness training.--The Department has 
conducted civil-military innovative readiness training [IRT] 
throughout the United States since the early 1990's. Through 
the use of Active and Reserve component personnel, this program 
provides community support in the areas of health care, 
engineering, and infrastructure. These combat support and 
service support units gain valuable hands-on mission essential 
training. The Committee continues to strongly support this 
realistic training and endorses such projects as Guardcare and 
Walking Shield. The Committee believes that the Department 
should expand the scope of the readiness training initiatives 
to include native American groups when appropriate and 
compatible with mission requirements.

                Institute for National Security Studies

    The Committee commends the Institute for National Security 
studies at the National Defense University for its excellent 
analysis on national security issues. The INSS annual 
``Strategic Assessment'', ``Joint Force Quarterly'' and many 
groundbreaking conferences and war games, provide the kind of 
forward-looking debate that is needed in a democracy. INSS 
researchers provide the Department of Defense with a unique and 
innovative analytical capability that will help our Nation 
develop sound national security strategies for the future.

          Reserve and National Guard Operation and Maintenance

                Operation and Maintenance, Army Reserve

Appropriations, 1998....................................  $1,207,891,000
Budget estimate, 1999...................................   1,202,622,000
Committee recommendation................................   1,202,622,000

    The Committee recommends an appropriation of 
$1,202,622,000. This is equal to the budget request.
    Construction equipment rebuild programs.--The Committee 
encourages the Department of the Army to initiate and fund a 
rebuild program for graders and scrapers for the Army Reserve. 
The major end-item rebuild program has proved to be an 
important part of the Army's overall modernization strategy.

                Operation and Maintenance, Navy Reserve

Appropriations, 1998....................................    $921,711,000
Budget estimate, 1999...................................     928,639,000
Committee recommendation................................     928,639,000

    The Committee recommends an appropriation of $928,639,000. 
This is equal to the budget request.

            Operation and Maintenance, Marine Corps Reserve

Appropriations, 1998....................................    $116,366,000
Budget estimate, 1999...................................     114,593,000
Committee recommendation................................     114,593,000

    The Committee recommends an appropriation of $114,593,000. 
This is equal to the budget request.

              Operation and Maintenance, Air Force Reserve

Appropriations, 1998....................................  $1,632,030,000
Budget estimate, 1999...................................   1,744,696,000
Committee recommendation................................   1,744,696,000

    The Committee recommends an appropriation of 
$1,744,696,000. This is equal to the budget request.

             Operation and Maintenance, Army National Guard

Appropriations, 1998....................................  $2,419,632,000
Budget estimate, 1999...................................   2,436,815,000
Committee recommendation................................   2,661,815,000

    The Committee recommends an appropriation of 
$2,661,815,000. This is $225,000,000 above the budget request.
    All recommended adjustments to the budget request, 
including those items discussed elsewhere in this report, are 
summarized below:

                        [In thousands of dollars]

                                                               Committee
        Program                                              adjustments

Real property maintenance backlog.............................    65,000
Distance learning project/information management..............    35,000
Land forces operations........................................    53,500
Land forces readiness support.................................    14,000
Depot maintenance.............................................    37,500
Communication shortfalls......................................    20,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................   225,000

Recommended appropriations

                                                               2,661,815

    Real property maintenance, Army National Guard.--During the 
past several years, the Committee provided an increase for in-
house recurring maintenance and day-to-day repairs, as well as 
in-house and contract projects required to maintain, repair, 
and adapt facility infrastructure to meet mission needs. The 
Committee provides $65,000,000 for this purpose in fiscal year 
1999. The Committee intends for these funds to be used to 
reduce the growing Army National Guard real property 
maintenance project backlog within the 54 Army Guard 
organizations, not for studies or other administrative 
functions. The funds provided under this heading are in 
addition to any other funds appropriated to the Army for real 
property maintenance on behalf of the Army National Guard. The 
Committee directs the Chief of the National Guard Bureau 
provide to the Committee of Appropriations a report detailing 
how these funds will be allocated not later than March 1, 1999.
    Distance learning initiative.--The Committee provides an 
increase of $35,000,000 in the Army National Guard ``Operation 
and maintenance'' appropriation and $31,000,000 in the ``Other 
procurement, Army'' appropriation for distance learning and 
information management requirements. The Committee supports the 
regional distance learning initiative and creation of a 
distance learning network to reduce costs of training soldiers, 
as well as to track personnel and equipment inventories. The 
program is now fielded nationwide to include the territories. 
Over 200 classrooms will be fielded over the next year which 
will directly support National Guard readiness requirements and 
community development.
    The Committee directs that $4,600,000 of the funds provided 
under this heading be provided to the Montana Army Guard for a 
distance learning demonstration project that will expand access 
to informational, educational and governmental resources. These 
systems will serve as a means of delivering low cost military 
training to our National Guard forces and as a subsystem of the 
national disaster information network serving FEMA and the 
State disaster and emergency services. This project will 
provide a prototype of this type of training and integration 
within the National Guard and State organizations.
    The Committee directs that funding for the distance 
learning network be spent only for expansion and continuation 
of the program. The Committee further directs the National 
Guard Bureau provide to the congressional defense committees a 
report on how the Department intends to allocate funding for 
the distance learning program in fiscal year 1999 not later 
than November 15, 1999.
    DeBremmond Training Center.--Of the funds provided under 
this heading, the Committee provides an additional $250,000 to 
maintain and operate the DeBremmond Training Center in Roswell, 
NM.

             Operation and Maintenance, Air National Guard

Appropriations, 1998....................................  $3,013,282,000
Budget estimate, 1999...................................   3,093,933,000
Committee recommendation................................   3,113,933,000

    The Committee recommends an appropriation of 
$3,113,933,000. This is $20,000,000 above the President's 
budget.
    All recommended adjustments to the budget request, 
including those items discussed elsewhere in this report, are 
summarized below:

                        [In thousands of dollars]

                                                               Committee
        Program                                              adjustments

C-130 operations..............................................    10,000
Depot maintenance.............................................    10,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    20,000

Recommended appropriations

                                                               3,113,933

    C-130 operations.--The Committee recognizes the increased 
demand placed on C-130 aircraft operations within the Air 
National Guard and has provided $10,000,000 to address 
increased operations, maintenance, and supports costs. Such 
funds are intended to support both the C-130 aircraft assigned 
to operational squadrons and for full coverage of the cost of 
operating and maintaining those stand alone aircraft currently 
utilized by selected States.

             OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND

Appropriations, 1998....................................  $1,884,000,000
Budget estimate, 1999...................................     746,900,000
Committee recommendation................................     746,900,000

    The Committee retains this transfer fund for ongoing 
contingency operations in Southwest Asia and Bosnia and fully 
funds the original budget request. However, given the combined 
factors of the administration's announced intention to reduce 
force levels and discussions with allies during the Committee's 
April trip to Southwest Asia and Bosnia, no funds have been 
added for ongoing contingency operations, pending further 
refinement of requirements.
    In the fiscal year 1997 supplemental appropriations and 
rescissions report, the Committee directed a subdivision of the 
fund to delineate amounts appropriated by individual 
contingency operation. The Under Secretary of Defense 
(Comptroller) shall continue to notify the defense 
subcommittees 30 days in advance if the Department expects to 
exceed the total allotment for a given contingency and to 
provide quarterly reports to the defense subcommittees. These 
reports shall include amounts transferred and the requirements 
funded, in the same format as provided in supplemental and 
reprogramming requests.

                       Court of Military Appeals

Appropriations, 1998....................................      $6,952,000
Budget estimate, 1999...................................       7,324,000
Committee recommendation................................       7,324,000

    The Committee recommends an appropriation of $7,324,000 for 
activities of the Court of Military Appeals for fiscal year 
1999.

                       Environmental Restoration

Total Appropriations, 1998..............................  $1,296,937,000
Budget estimate, 1999...................................   1,259,431,000
Committee recommendation................................   1,265,431,000

    The Committee recommends a total amount for environmental 
restoration of $1,265,431,000. This is $6,000,000 above the 
budget estimate. The Committee agrees with the reductions 
proposed by the Senate Armed Services Committee in the 
environmental accounts for a total reduction of $24,000,000.
    Total environmental remediation contracts [TERC].--The 
Committee directs that not more than 25 percent of funding 
obligated by the Corps of Engineers for environmental 
remediation shall be executed through existing TERC contracts.
    Compliance with defense acquisition regulations.--For 
environmental restoration projects subject to the terms of 
section 52.2222 of the Defense Federal acquisition regulations 
[DFAR], the Committee directs that any awardee of contracts for 
such projects exceeding $1,000,000 shall submit a plan for 
compliance with section 52.2222 of the DFAR to the appropriate 
contracting office not later than 90 days after contract award.
    Notification of environmental contract awards.--The 
Committee remains concerned that the Department failed to fully 
accomplish the Committee's intent regarding adequate 
notification of the projects funded by this account. To ensure 
the Department complies with this direction, each military 
service shall notify interested State and local authorities and 
interested Members of Congress upon release of draft 
solicitations for contracts anticipated to exceed $1,000,000. 
The Committee directs that this requirement shall apply to all 
increments of indefinite delivery indefinite quantity-type 
contracts which meet this threshold.
    Building demolition and debris removal.--From funds 
available within this heading, the Committee directs the 
Department to conduct building demolition and debris removal 
for formerly used defense sites transferred to the Department 
of the Interior.
    Streamlining acquisition of environmentally preferred 
products.--Pollution prevention within the Department of 
Defense has proven to be financially viable with both short- 
and long-term savings. A critical element of pollution 
prevention is the purchase of environmentally preferred 
products [EPP's] as defined by Executive Order 12873. 
Accordingly, the Committee urges the Department, services, and 
Defense Logistics Agency to develop mechanisms to identify 
products that meet EPP standards established by appropriate 
Federal agencies or nongovernmental organizations. Further, the 
Department of Defense should include resources toward an 
interagency task force to examine Federal EPP standards, 
policies, and methods to encourage such Federal purchases, as 
well as provide resources to adequately develop the 
Department's procurement data bases so that appropriate 
environmental performance and content specifications, and other 
environmental attributes, can be properly included.
    The Committee has provided the following funding for each 
service:

                    Environmental Restoration, Army

Appropriations, 1998....................................    $375,337,000
Budget estimate, 1999...................................     377,640,000
Committee recommendation................................     370,640,000

    The Committee recommends an appropriation of $370,640,000 
for fiscal year 1999. This amount is $7,000,000 below the 
budget request.

                    Environmental Restoration, Navy

Appropriations, 1998....................................    $275,500,000
Budget estimate, 1999...................................     281,600,000
Committee recommendation................................     274,600,000

    The Committee recommends an appropriation of $274,600,000 
for fiscal year 1999. This amount is $7,000,000 below the 
budget request.

                  Environmental Restoration, Air Force

Appropriations, 1998....................................    $376,900,000
Budget estimate, 1999...................................     379,100,000
Committee recommendation................................     372,100,000

    The Committee recommends an appropriation of $372,100,000 
for fiscal year 1999. This amount is $7,000,000 below the 
budget request.

                Environmental Restoration, Defense-wide

Appropriations, 1998....................................     $26,900,000
Budget estimate, 1999...................................      26,091,000
Committee recommendation................................      23,091,000

    The Committee recommends an appropriation of $23,091,000 
for fiscal year 1999. This amount is $3,000,000 below the 
budget request.

         Environmental Restoration, Formerly Used Defense Sites

Appropriations, 1998....................................    $242,300,000
Budget estimate, 1999...................................     195,000,000
Committee recommendation................................     225,000,000

    The Committee recommends an appropriation of $225,000,000 
for fiscal year 1999. This amount is $30,000,000 above the 
budget request.
    All recommended adjustments to the budget request, 
including those items discussed elsewhere in this report, are 
summarized below:

                        [In thousands of dollars]

                                                               Committee
        Program                                               adjustment

Reduce backlog................................................    30,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    30,000

Recommended appropriation

                                                                 225,000

    Formerly used defense sites [FUDS].--The Committee commends 
the Army and the Corps of Engineers for their management of 
this program and provides an additional $30,000,000 to reduce 
the number of FUDS requiring investigation and remediation.
    Building demolition and debris removal in Alaska.--From 
funds available under this heading, the Department of Defense 
may perform removals of military buildings and debris located 
on formerly used defense sites [FUDS] on native-owned land, 
State land, or land owned, or managed by the United States. To 
minimize mobilization costs at such sites, building demolition 
and debris removal will be funded along with the removal of 
other hazardous materials at such sites and shall be given the 
same funding priority as the hazardous materials projects as 
that site.

                  Former Soviet Union Threat Reduction

Appropriations, 1998....................................    $382,200,000
Budget estimate, 1999...................................     442,400,000
Committee recommendation................................     440,400,000

    The Committee appropriates $440,400,000, the authorized 
level, for this program.
    Russian nuclear submarine dismantlement and disposal.--The 
Committee directs that $35,000,000 of the funds provided for 
the Former Soviet Union Threat Reduction Program be used to 
support Russian nuclear submarine dismantlement and disposal 
activities begun in fiscal year 1998. The Committee further 
directs that a status report regarding this program be provided 
to the Committee not later than February 15, 1999.

             Overseas Humanitarian, Disaster, and Civic Aid

Appropriations, 1998....................................     $47,130,000
Budget estimate, 1999...................................      63,311,000
Committee recommendation................................      50,000,000

    The Committee appropriates $50,000,000, the authorized 
level, for the Overseas Humanitarian, Disaster, and Civic Aid 
Program [OHDCA]. The Committee directs that none of the 
reduction should be taken against the Department's demining 
efforts. Of the funds provided for OHDCA, the Department may 
expend up to $1,000,000 for telemedicine efforts associated 
with rehabilitation of victims of landmines.

                               TITLE III

                              PROCUREMENT

                  Estimates and Appropriation Summary

    The President's Department of Defense fiscal year 1999 
title III procurement budget request totals $47,849,546,000. 
This request is $2,202,331,000 or 4.8 percent above the amounts 
Congress appropriated in fiscal year 1998 for procurement 
activities.
    Title III of the accompanying bill recommends a total of 
$48,568,838,000 in new budget authority. The total amount 
recommended is an increase of $719,292,000 to the fiscal year 
1999 budget request. The following table summarizes the 
procurement budget estimates, the Committee recommendations, 
and a comparison.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1999 budget       Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
Aircraft procurement, Army...................................       1,325,943        1,408,652          +82,709 
Missile procurement, Army....................................       1,205,768        1,188,739          -17,029 
Procurement of weapons and tracked combat vehicles, Army.....       1,433,608        1,484,055          +50,447 
Procurement of ammunition, Army..............................       1,008,855          998,655          -10,200 
Other procurement, Army......................................       3,198,811        3,395,729         +196,918 
                                                              --------------------------------------------------
      Subtotal, Army.........................................       8,172,985        8,475,830         +302,845 
                                                              ==================================================
Aircraft procurement, Navy...................................       7,466,734        7,473,403           +6,669 
Weapons procurement, Navy....................................       1,327,545        1,324,045           -3,500 
Procurement of ammunition, Navy and Marine  Corps............         429,539          480,739          +51,200 
Shipbuilding and conversion, Navy............................       6,252,672        6,067,272         -185,400 
Other procurement, Navy                                             3,937,737        3,886,475          -51,262 
Procurement, Marine Corps....................................         745,858          954,177         +208,319 
                                                              --------------------------------------------------
      Subtotal, Navy.........................................      20,160,085       20,186,111          +26,026 
                                                              ==================================================
Aircraft procurement, Air Force..............................       7,756,475        7,967,023         +210,548 
Missile procurement, Air Force...............................       2,359,803        2,219,299         -140,504 
Procurement of Ammunition, Air Force.........................         384,161          384,161   ...............
Other procurement, Air Force.................................       6,974,387        6,904,164          -70,223 
                                                              --------------------------------------------------
      Subtotal, Air Force....................................      17,474,826       17,474,647             -179 
                                                              ==================================================
Procurement, Defense-wide....................................       2,041,650        1,932,250         -109,400 
National Guard and Reserve equipment.........................  ...............         500,000         +500,000 
                                                              --------------------------------------------------
      Total, procurement.....................................      47,849,546       48,568,838         +719,292 
----------------------------------------------------------------------------------------------------------------

                       Items of Special Interest

                       committee recommendations

    The Committee has reflected a number of its funding 
adjustments in a table format. The Committee directs that the 
funding increases outlined in the tables which follow shall be 
provided only for the specific purposes outlined in the table 
entry.

                  procurement of product improvements

    A number of programs are currently procuring baseline 
system designs as an interim measure before transitioning 
preplanned product improvements into the systems. The Defense 
Department will likely relegate these baseline systems to a 
backup role once improved systems are available. Further, this 
approach establishes a production base with its associated 
fixed costs and minimum economic procurement quantities.
    The Committee believes that neither the current threat 
environment nor the urgency of schedule milestones justify this 
acquisition strategy. Indeed, the current outlook for defense 
spending demands that the Defense Department procure only those 
systems which will be our first line of defense in a crisis. 
For example, given the current armor threat, the Committee 
cannot support a schedule driven procurement of the brilliant 
antiarmor tank [BAT] munition, the sense and destroy munition 
[SADARM], the sensor fuzed weapon [SFW], and the wide area mine 
[WAM].
    The Committee believes that it is far more prudent to 
develop the near-term product improvements and to procure the 
objective system rather than a baseline capability. Thus, the 
Committee has proposed reductions to the procurement request 
for a number of programs, in order to limit procurement of 
baseline systems. The Committee has also provided increases in 
some cases to fully fund or accelerate the development of 
product improvements. In many cases, these product improvements 
add capability, enhance lethality, simplify manufacturing, and 
reduce operations and maintenance costs. The Committee endorses 
this more measured approach to acquisition, an approach which 
maintains a focus on both our long-term defense needs and our 
limited procurement resources. Within a disciplined procurement 
process, this does not have to mean that we always develop and 
never buy. It does mean that we can develop and procure the 
right system, and dispense with schedule driven procurement.

                             vehicle leases

    The Committee recommends several provisions which require 
the services to lease commercial vehicles, such as sedans, 
buses, ambulances, compact trucks, and utility vehicles, from 
funds made available in procurement appropriations. This action 
allows the services to exploit the competitive commercial 
leasing market, reduce base motor pool personnel and overhead, 
and plan for infrastructure reductions. The budget request for 
procurement of vehicles in the other procurement, Navy, Army, 
and Air Force, and procurement, Marine Corps and Defense-wide 
appropriations has been adjusted and the Committee has 
established a vehicle lease line in these same appropriations.

                             armored sedans

    The Committee is concerned with the Department of Defense's 
procurement of armored sedans. The Committee has adjusted the 
budget request for the individual services, and recommends that 
these vehicles be purchased or leased from within the 
``Procurement, Defense-wide'' appropriation.

                       Aircraft Procurement, Army

Appropriations, 1998....................................  $1,346,317,000
Budget estimate, 1999...................................   1,325,943,000
Committee recommendation................................   1,408,652,000

    The Committee recommends $1,408,652,000, an increase of 
$82,709,000 to the budget. This appropriation finances the 
acquisition of tactical and utility helicopters and airplanes, 
including associated electronics, communications equipment, and 
armament; modification and modernization of inservice aircraft; 
flight simulators; ground support equipment; production base 
support; and components and spare parts including transmissions 
and gearboxes.

                     COMMITTEE RECOMMENDED PROGRAM

    The Committee recommendation adds funds to increase 
procurement of utility helicopters, to continue multiyear 
procurement of heavy attack helicopter upgrades, and to upgrade 
cargo helicopters.
    The allowance also adjusts funding for programs as listed 
in the following tables and as discussed in the text which 
follows.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                               Budget              Senate            compared to
                                                      Qty.    estimate    Qty.    allowance   Qty.      budget  
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
             AIRCRAFT PROCUREMENT, ARMY                                                                         
                                                                                                                
AIRCRAFT:                                                                                                       
    FIXED WING:                                                                                                 
        ARL (TIARA)................................  ......      13,133  ......      13,133  ......  ...........
        C-XX (MEDIUM RANGE) AIRCRAFT...............  ......  ..........       6      30,000      +6      +30,000
        GUARDRAIL COMMON SENSOR (TIARA)............  ......       1,931  ......       1,931  ......  ...........
    ROTARY:                                                                                                     
        UH-60 BLACKHAWK (MYP)......................      22     218,820      30     292,765      +8      +73,945
        UH-60 BLACKHAWK (MYP) (AP-CY)..............  ......  ..........  ......  ..........  ......  ...........
                                                    ------------------------------------------------------------
          TOTAL, AIRCRAFT..........................  ......     233,884  ......     337,829  ......     +103,945
                                                    ============================================================
MODIFICATION OF AIRCRAFT:                                                                                       
    GUARDRAIL MODS (TIARA).........................  ......      36,079  ......      36,079  ......  ...........
    AH1F MODS......................................  ......         512  ......         512  ......  ...........
    AH-64 MODS.....................................  ......      52,902  ......      54,402  ......       +1,500
    CH-47 CARGO HELICOPTER MODS (MYP)..............  ......     101,176  ......      73,876  ......      -27,300
    C-12 CARGO AIRPLANE MODS.......................  ......       2,658  ......       8,658  ......       +6,000
    OH-58 MODS.....................................  ......          90  ......          90  ......  ...........
    C-20 AIRCRAFT MODS.............................  ......         799  ......         799  ......  ...........
    LONGBOW........................................  ......     570,096  ......     570,096  ......  ...........
    LONGBOW (AP-CY)................................  ......      41,683  ......      41,683  ......  ...........
    UH-1 MODS......................................  ......       3,789  ......       3,789  ......  ...........
    UH-60 MODS.....................................  ......      21,657  ......      21,657  ......  ...........
    KIOWA WARRIOR..................................  ......      40,446  ......      52,646  ......      +12,200
    EH-60 QUICKFIX MODS............................  ......       3,015  ......  ..........  ......       -3,015
    AIRBORNE AVIONICS..............................  ......      56,335  ......      56,335  ......  ...........
    ASE MODS.......................................  ......       2,743  ......       2,743  ......  ...........
    MODIFICATIONS LESS THAN $2.0M..................  ......       1,660  ......       1,660  ......  ...........
                                                    ------------------------------------------------------------
      TOTAL, MODIFICATION OF AIRCRAFT..............  ......     935,640  ......     925,025  ......      -10,615
                                                    ============================================================
SPARES AND REPAIR PARTS............................  ......      36,047  ......      36,047  ......  ...........
SUPPORT EQUIPMENT AND FACILITIES:                                                                               
    GROUND SUPPORT AVIONICS: AIRCRAFT SURVIVABILITY                                                             
     EQUIPMENT.....................................  ......       5,144  ......      18,944  ......      +13,800
    OTHER SUPPORT: AIRBORNE COMMAND & CONTROL......  ......      24,421  ......  ..........  ......      -24,421
    AVIONICS SUPPORT EQUIPMENT.....................  ......       2,555  ......       2,555  ......  ...........
        TRAINING DEVICES...........................  ......  ..........  ......  ..........  ......  ...........
        COMMON GROUND EQUIPMENT....................  ......      30,107  ......      30,107  ......  ...........
        AIRCREW INTEGRATED SYSTEMS.................  ......       9,050  ......       9,050  ......  ...........
        AIR TRAFFIC CONTROL........................  ......       5,691  ......       5,691  ......  ...........
        INDUSTRIAL FACILITIES......................  ......       1,493  ......       1,493  ......  ...........
        AIRBORNE COMMUNICATIONS....................  ......      41,911  ......      41,911  ......  ...........
                                                    ------------------------------------------------------------
          TOTAL, SUPPORT EQUIPMENT AND FACILITIES..  ......     120,372  ......     109,751  ......      -10,621
ECONOMIC ASSUMPTIONS...............................  ......  ..........  ......  ..........  ......  ...........
                                                    ============================================================
      TOTAL, AIRCRAFT PROCUREMENT, ARMY............  ......   1,325,943  ......   1,408,652  ......      +82,709
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Excess funds.--The reductions recommended by the Committee 
in the following table delete funds which are excess to firm 
program requirements based on delays in the release of prior-
year funds; late award of contract efforts; slow execution of 
prior-year funds; or differences between the budget request and 
the actual program plans.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1999 budget       Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
CH-47 cargo helicopter mods [MYP]............................         101,176           73,876          -27,300 
    Engine Upgrade Program delays............................  ...............         -27,300          -27,300 
----------------------------------------------------------------------------------------------------------------

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are not supported 
by firm requirements or out-year procurement funds; are 
premature until related, preliminary efforts are completed, and 
the results evaluated; are lower priority relative to other 
projects; are duplicative of other DOD projects; are increasing 
without a firm justification; or can be deferred without 
adversely affecting program activities.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1999 budget       Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
EH-60 quickfix mods..........................................           3,015   ...............          -3,015 
    Program reduction for testing delays.....................  ...............          -3,015           -3,015 
Airborne command and control.................................          24,421   ...............         -24,421 
    Army airborne command and control system [A\2\C\2\S]                                                        
     program delays..........................................  ...............         -24,421          -24,421 
----------------------------------------------------------------------------------------------------------------

    Program and project funding increases.--The Committee 
recommends the addition of funds for the following projects and 
programs to reflect congressional priorities; to rectify 
shortfalls in the budget request for activities; to implement 
increases endorsed and/or requested by the Army to address 
budget shortfalls; and to effect funding transfers recommended 
by the Committee or the Army.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1999 budget       Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
AH-64 mods...................................................          52,902           54,402           +1,500 
    AH-64 T701C engine upgrade...............................  ...............           1,500           +1,500 
Kiowa warrior................................................          40,446           52,646          +12,200 
    Crew station mission equipment trainer [CSMET]...........  ...............           2,600           +2,600 
    OH-58D system safety enhancement.........................  ...............           9,600           +9,600 
Aircraft survivability equipment.............................           5,144           18,944          +13,800 
    Aircraft survivability equipment trainer [ASET IV].......  ...............          13,800          +13,800 
----------------------------------------------------------------------------------------------------------------

    Authorization adjustments.--The Committee recommends the 
following adjustments based on the recommendations reported in 
the Senate bill authorizing programs and activities of the 
Department of Defense [DOD] for fiscal year 1999:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1999 budget       Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
C-XX (medium range) aircraft.................................  ...............          30,000          +30,000 
    Six additional aircraft \1\..............................  ...............          30,000          +30,000 
UH-60 Blackhawk [MYP] less AP................................         218,820          292,765          +73,945 
    Eight additional Blackhawks..............................  ...............          78,500          +78,500 
    Engineering change orders \2\............................  ...............          -4,555           -4,555 
C-12 cargo airplane mods.....................................           2,658            8,658           +6,000 
    C-12 avionics modernization..............................  ...............           6,000           +6,000 
----------------------------------------------------------------------------------------------------------------
\1\ Portion of the increase reflects Committee recommendations as outlined in the ``Program and project         
  increases'' heading of this report section.                                                                   
\2\ Program reduction recommended as described under the heading ``Program reductions and deferrals.''          

    UH-60Q MEDEVAC helicopter.--The UH-60Q is the No. 1 near-
term medical modernization program for the Army. Yet, the 
Army's funding strategy for this program does not begin until 
fiscal year 2002. The Committee expects the Army to accelerate 
this program and should begin funding this program in fiscal 
year 2000. The Secretary of the Army is directed to submit an 
acquisition strategy plan for the UH-60Q program to the 
Committee not later than January 15, 1999.

                       Missile Procurement, Army

Appropriations, 1998....................................    $762,409,000
Budget estimate, 1999...................................   1,205,768,000
Committee recommendation................................   1,188,739,000

    The Committee recommends an appropriation of $1,188,739,000 
for the Army's fiscal year 1999 ``Missile procurement'' 
account. The Committee's recommended funding level is 
$17,029,000 below the budget request.
    This appropriation finances the procurement, production, 
modification, and modernization of missiles, equipment, 
including ordnance, ground handling equipment, spare parts, and 
accessories therefore; specialized equipment and training 
devices; expansion of public and private plants, including the 
land necessary therefore, for the foregoing purposes, and such 
lands and interest therein, may be acquired, and construction 
prosecuted thereon prior to approval 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.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the President's budget:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                            Budget                Senate               compared 
                                                  Qty.     estimate     Qty.     allowance    Qty.     to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
           MISSILE PROCUREMENT, ARMY                                                                            
                                                                                                                
OTHER MISSILES:                                                                                                 
    SURFACE-TO-AIR MISSILE SYSTEM:                                                                              
        ENHANCED FIBER OPTIC GUIDED MISSILE                                                                     
         (EFOGM)..............................        96      13,716  ........  ..........       -96     -13,716
        AVENGER SYSTEM SUMMARY................        18      35,269        18      35,269  ........  ..........
    AIR-TO-SURFACE MISSILE SYSTEM: HELLFIRE                                                                     
     SYS SUMMARY..............................     2,000     360,625     2,000     360,625  ........  ..........
    ANTI-TANK/ASSAULT MISSILE SYSTEM:                                                                           
        JAVELIN (AAWS-M) SYSTEM SUM-  MARY....     3,316     319,988     3,316     349,988  ........     +30,000
        TOW 2 SYSTEM SUMMARY..................  ........  ..........  ........  ..........  ........  ..........
        MLRS ROCKET...........................       522      16,513       522  ..........  ........     -16,513
        MLRS LAUNCHER SYSTEMS.................        24      85,387        24     143,787  ........     +58,400
        ARMY TACTICAL MSL SYS (ATACMS)--SYS                                                                     
         SUM..................................        96      90,585        96      90,585  ........  ..........
        ATACMS/BAT............................        30      49,083        30      24,083  ........     -25,000
        BAT...................................       420     100,425       420      50,225  ........     -50,200
                                               -----------------------------------------------------------------
          TOTAL, OTHER MISSILES...............  ........   1,071,591  ........   1,054,562  ........     -17,029
                                               =================================================================
MODIFICATION OF MISSILES:                                                                                       
    MODIFICATIONS:                                                                                              
        PATRIOT MODS..........................  ........      15,259  ........      15,259  ........  ..........
        STINGER MODS..........................  ........      13,924  ........      13,924  ........  ..........
        AVENGER MODS..........................  ........       8,425  ........       8,425  ........  ..........
        ITAS/TOW MODS.........................  ........      62,478  ........      62,478  ........  ..........
        MLRS MODS.............................  ........       2,193  ........       2,193  ........  ..........
                                               -----------------------------------------------------------------
          TOTAL, MODIFICATION OF MIS-  SILES..  ........     102,279  ........     102,279  ........  ..........
SPARES AND REPAIR PARTS.......................  ........      23,718  ........      23,718  ........  ..........
SUPPORT EQUIPMENT AND FACILITIES:                                                                               
    AIR DEFENSE TARGETS.......................  ........       2,534  ........       2,534  ........  ..........
    ITEMS LESS THAN $2.0M (MISSILES)..........  ........         922  ........         922  ........  ..........
    MISSILE DEMILITARIZATION..................  ........       1,466  ........       1,466  ........  ..........
    PRODUCTION BASE SUPPORT...................  ........       3,258  ........       3,258  ........  ..........
                                               -----------------------------------------------------------------
      TOTAL, SUPPORT EQUIPMENT AND FACILITIES.  ........       8,180  ........       8,180  ........  ..........
ECONOMIC ASSUMPTIONS..........................  ........  ..........  ........  ..........  ........  ..........
                                               =================================================================
      TOTAL, MISSILE PROCUREMENT, ARMY........  ........   1,205,768  ........   1,188,739  ........     -17,029
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Program and project funding increases.--The Committee 
recommends the addition of funds for the following programs to 
reflect congressional priorities and to implement increases 
endorsed and/or requested by the Army to address budget 
shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Javelin [AAWS-M] system summary.................................         319,988         349,988         +30,000
MLRS launcher systems...........................................          85,387         143,787         +58,400
----------------------------------------------------------------------------------------------------------------

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are excess to firm 
program requirements based on delays in the release of prior-
year funds; late contract efforts; slow execution of prior-year 
funds; differences between the budget request and the actual 
program plans; or are lower priority relative to other 
programs.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
ATACMS/BAT......................................................          49,083          24,083         -25,000
BAT.............................................................         100,425          50,225         -50,200
----------------------------------------------------------------------------------------------------------------

    Army tactical missile system [ATACMS] BAT/BAT 
submunition.--Consistent with the observations outlined in the 
title III overview section of this report, the Committee 
recommends reductions to slow the initial rate production of 
the ATACMS BAT and the BAT submunition.

                           OTHER ADJUSTMENTS

    The Committee recommends incorporating the following 
adjustments to the budget estimate, in accordance with the 
Senate authorization committee action.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Enhanced fiber optic guided missile [EFOGM].....................          13,716  ..............         -13,716
MLRS rocket.....................................................          16,513  ..............         -16,513
----------------------------------------------------------------------------------------------------------------

    MLRS rockets.--The Committee understands that the Army 
projects significant foreign military sales for MLRS rockets. 
Should these sales fall short of projections, the Committee 
directs the Army to reprogram sufficient funds to keep the 
production line warm, maintain the equipment required for the 
guided MLRS production, and ensure that the capability to 
produce ER-MLRS rockets remains as a war contingency.
    MLRS launchers.--The Committee has included $50,000,000 
above the budget request to procure additional MLRS launchers 
for the National Guard. The Committee has also included an 
additional $8,400,000 to procure commercial off-the-shelf 
technology [COTS] to implement the joint technical 
architecture-Army [JTA-Army] as the new M270A1 launcher is 
fielded. The Committee has been informed that if these funds 
are not provided in fiscal year 1999, JTA-Army will have to be 
retrofitted into the launchers in the future at greater 
expense.
    Javelin.--The Committee recommends an additional 
$30,000,000 for Javelin. The Committee expects the additional 
missiles purchased will be provided to crisis response forces 
stationed in the Pacific.

        Procurement of Weapons and Tracked Combat Vehicles, Army

Appropriations, 1998....................................  $1,298,707,000
Budget estimate, 1999...................................   1,433,608,000
Committee recommendation................................   1,484,055,000

    The Committee recommends an appropriation of $1,484,055,000 
for the Army's fiscal year 1999 ``Procurement of weapons and 
tracked combat vehicles'' account. The Committee recommendation 
is $50,447,000 above the President's budget request.
    This appropriation provides for the procurement of tanks, 
armored personnel carriers, and combat engineer vehicles. Funds 
are also provided for the acquisition of crew-served weapons, 
grenade launchers, towed and self-propelled guns and howitzers, 
mortars, laser rangefinders, associated training equipment, 
modification of inservice equipment, initial spares and repair 
parts, major components, and production base support.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                               Budget               Senate             compared 
                                                      Qty.    estimate     Qty.    allowance   Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
            PROCUREMENT OF W&TCV, ARMY                                                                          
                                                                                                                
TRACKED COMBAT VEHICLES:                                                                                        
    ABRAMS TRNG DEV MOD...........................  .......       8,536  .......       8,536  ......  ..........
    BRADLEY BASE SUSTAINMENT......................  .......     285,844  .......     283,844  ......      -2,000
    BRADLEY FVS TRAINING DEVICES..................  .......      12,728  .......      12,728  ......  ..........
    HAB TRAINING DEVICES..........................  .......         386  .......         386  ......  ..........
    BRADLEY FVS TRAINING DEVICES (MOD)............  .......       2,075  .......       2,075  ......  ..........
    FIELD ARTILLERY AMMUNITION SUPPORT VEH........  .......  ..........  .......  ..........  ......  ..........
    ABRAMS TANK TRAINING DEVICES..................  .......      13,411  .......      13,411  ......  ..........
    COMMAND & CONTROL VEHICLE.....................       10      44,241       10      44,241  ......  ..........
MODIFICATION OF TRACKED COMBAT VEHICLES:                                                                        
    CARRIER, MOD..................................  .......      54,454  .......      54,454  ......  ..........
    FIST VEHICLE (MOD)............................  .......      20,720  .......      20,720  ......  ..........
    BFVS SERIES (MOD).............................  .......      58,998  .......      78,998  ......     +20,000
    HOWITZER, MED SP FT 155MM M109A6 (MOD)........  .......      11,339  .......      11,339  ......  ..........
    FAASV PIP TO FLEET............................  .......       3,157  .......       3,157  ......  ..........
    IMPROVED RECOVERY VEHICLE (M88 MOD)...........  .......      38,175  .......      55,075  ......     +16,900
    HEAVY ASSAULT BRIDGE (HAB) SYS (MOD)..........  .......      50,401  .......      43,748  ......      -6,653
    ARMORED VEH LAUNCH BRIDGE (AVLB) (MOD)........  .......         969  .......         969  ......  ..........
    M1 ABRAMS TANK (MOD)..........................  .......      53,301  .......      46,601  ......      -6,700
    ABRAMS UPGRADE PROGRAM........................  .......     412,661  .......     408,061  ......      -4,600
    ABRAMS UPGRADE PROGRAM (AP-CY)................  .......     262,942  .......     262,942  ......  ..........
    MODIFICATIONS LESS THAN $2.0M (TCV-WTCV)......  .......  ..........  .......  ..........  ......  ..........
SUPPORT EQUIPMENT AND FACILITIES:                                                                               
    ITEMS LESS THAN $2.0M (TCV-WTCV)..............  .......         132  .......         132  ......  ..........
    PRODUCTION BASE SUPPORT (TCV-WTCV)............  .......       8,861  .......       8,861  ......  ..........
                                                   -------------------------------------------------------------
      TOTAL, TRACKED COMBAT VEHICLES..............  .......   1,343,331  .......   1,360,278  ......     +16,947
                                                   =============================================================
WEAPONS AND OTHER COMBAT VEHICLES:                                                                              
    ARMOR MACHINE GUN, 7.62MM M240 SERIES.........      673       6,496      673      12,996  ......      +6,500
    MACHINE GUN, 5.56MM (SAW).....................    1,525       4,494    1,525       4,494  ......  ..........
    GRENADE LAUNCHER, AUTO, 40MM, MK19-3..........      697      12,191      697      15,191  ......      +3,000
    M16 RIFLE.....................................   16,067       6,829   16,067       6,829  ......  ..........
    5.56 CARBINE M4...............................    6,310       4,230    6,310       4,230  ......  ..........
MODIFICATION OF WEAPONS AND OTHER COMBAT VEHI:                                                                  
    M4 CARBINE MODS...............................  .......       5,149  .......       5,149  ......  ..........
    M119 MODIFICATIONS............................  .......       4,812  .......       4,812  ......  ..........
    M16 RIFLE MODS................................  .......       6,241  .......       5,241  ......      -1,000
    MODIFICATIONS LESS THAN $2.0M (WOCV-  WTCV)...  .......       1,128  .......       1,128  ......  ..........
SUPPORT EQUIPMENT AND FACILITIES:                                                                               
    ITEMS LESS THAN $2.0M (WOCV-WTCV).............  .......       1,164  .......       1,164  ......  ..........
    PRODUCTION BASE SUPPORT (WOCV-WTCV)...........  .......       5,140  .......       5,140  ......  ..........
    INDUSTRIAL PREPAREDNESS.......................  .......       3,959  .......       3,959  ......  ..........
    SMALL ARMS (SOLDIER ENH PROG).................  .......       5,233  .......       5,233  ......  ..........
                                                   -------------------------------------------------------------
      TOTAL, WEAPONS AND OTHER COMBAT VEHICLES....  .......      67,066  .......      75,566  ......      +8,500
SPARE AND REPAIR PARTS:                                                                                         
    SPARES AND REPAIR PARTS (WTCV)................  .......      23,211  .......      23,211  ......  ..........
    DIRECT SUPPORT ELECTRICAL TEST SETS (DSETS)...  .......  ..........  .......      25,000  ......     +25,000
ECONOMIC ASSUMPTIONS..............................  .......  ..........  .......  ..........  ......  ..........
                                                   =============================================================
      TOTAL, PROCUREMENT OF W&TCV, ARMY...........  .......   1,433,608  .......   1,484,055  ......     +50,447
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Program and project funding adjustments.--The Committee 
recommends the following adjustments to reflect congressional 
priorities; to implement increases endorsed and/or requested by 
the Army to address budget shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Bradley base sustainment........................................         285,844         283,844          -2,000
BFVS series (mod) armor tiles...................................          58,998          78,998         +20,000
M-1 Abrams tank (mod)...........................................          53,301          46,601          -6,700
Abrams upgrade program less AP..................................         412,661         408,061          -4,600
M-16 rifle mods.................................................           6,241           5,241          -1,000
DSETS...........................................................  ..............          25,000         +25,000
Heavy assault bridge............................................          50,401          43,748          -6,653
----------------------------------------------------------------------------------------------------------------

    Bradley fighting vehicles.--The Army's budget request 
includes $58,998,000 for the modification of Bradley fighting 
vehicles. The Committee recommends providing $78,998,000, an 
increase of $20,000,000 only for the procurement of armor 
tiles. The Committee recommends a reduction of $2,000,000 for 
software delays.
    M-1 Abrams tank modification.--The Army's budget request 
contained $20,300,000 for the procurement of M-1A1-D 
integration kits. Due to program savings, the Army was able to 
begin this procurement in fiscal year 1998, and the Committee 
recommends a decrease of $6,700,000. An additional decrease of 
$4,600,000 to the Abrams Upgrade Program is recommended in 
technical, engineering support, gun and gun mount overhead 
rates, and software turnover costs.
    Direct support electrical test sets [DSETS].--The Committee 
recommends an increase of $25,000,000 only for the procurement 
of DSETS and field test program sets [TPS]. The Committee 
recommends $5,000,000 for the Abrams Upgrade Program, 
$5,000,000 only for the procurement of TPS's for the Bradley 
fire integration support team vehicle, $5,000,000 for TPS's for 
the Bradley command and control vehicle, $5,000,000 for Bradley 
legacy fleet vehicle diagnostics, and $5,000,000 for TPS's for 
the Bradley linebacker Stinger missile subsystem.
    M-88A2 improved recovery vehicle.--The M-88A2 IRV is now 
being fielded to Army armor units to alleviate significant 
safety problems in recovery operations of M-1 tanks. The 
Committee strongly supports this program and understands that 
traction problems previously identified have now been resolved. 
The Army should continue this important program at an economic 
production rate of at least 24 vehicles per year until the 
service has achieved its inventory requirement for tank 
recovery vehicles.
    Heavy assault bridge.--The Committee recommends a decrease 
of $6,653,000 based on contract savings.

                           Other adjustments

    The Committee recommends incorporating the following 
adjustments to the budget estimate, in accordance with the 
Senate authorization committee action:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Grenade launcher MK-19-3........................................          12,191          15,191          +3,000
Armor machine gun, 7.62 mm M240 series..........................           6,496          12,996          +6,500
----------------------------------------------------------------------------------------------------------------

                    Procurement of Ammunition, Army

Appropriations, 1998....................................  $1,037,202,000
Budget estimate, 1999...................................   1,008,855,000
Committee recommendation................................     998,655,000

    The Committee recommends an appropriation of $998,655,000 
for Army ammunition for fiscal year 1999. This is $10,200,000 
below the President's budget request.
    This appropriation finances the acquisition of ammunition 
for training and war reserve stocks, modernization and 
maintenance of equipment and facilities (including 
construction), and maintenance of inactive ammunition 
facilities.

                     committee recommended programs

    The following table details the Committee recommendation in 
comparison with the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                                Budget              Senate             compared 
                                                       Qty.    estimate    Qty.    allowance   Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
           PROCUREMENT OF AMMUNITION, ARMY                                                                      
                                                                                                                
AMMUNITION:                                                                                                     
    SMALL/MEDIUM CAL AMMUNITION:                                                                                
        CTG, 5.56MM, ALL TYPES......................  ......      91,620  ......      77,620  ......     -14,000
        CTG 5.56MM ARMOR PIERCING M995..............   1,314       1,926   1,314       1,926  ......  ..........
        CTG, 7.62MM, ALL TYPES......................  ......      10,463  ......       7,263  ......      -3,200
        CTG 7.62MM ARMOR PIERCING XM993.............     922       1,926     922       1,926  ......  ..........
        CTG, 9MM, ALL TYPES.........................  ......       1,907  ......       1,907  ......  ..........
        CTG, .45 CAL, ALL TYPES.....................  ......           2  ......           2  ......  ..........
        CTG, .50 CAL, ALL TYPES.....................  ......      18,544  ......      18,544  ......  ..........
        CTG CAL .50 API MK211 MOD 0.................  ......  ..........  ......  ..........  ......  ..........
        CTG, 25MM, ALL TYPES........................  ......      59,618  ......      71,618  ......     +12,000
        CTG, 30MM, ALL TYPES........................  ......       9,061  ......       9,061  ......  ..........
        CTG, 40MM, ALL TYPES........................  ......      35,618  ......      35,618  ......  ..........
    MORTAR AMMUNITION:                                                                                          
        CTG MORTAR 60MM SMOKE WP M722...............  ......         375  ......         375  ......  ..........
        CTG MORTAR 60MM HE M720/M720A1 W/M734 FUZE..      47      20,528      47      20,528  ......  ..........
        CTG 81MM INFRARED (IR) ILLUM XM816..........      10       9,366      10       9,366  ......  ..........
        CTG MORTAR 120MM FULL RANGE PRACTICE M931...      97      39,703      97      39,703  ......  ..........
        CTG MORTAR 120MM HE M934 W/MO FUZE..........      33      29,087      33      29,087  ......  ..........
        CTG MORTAR 120MM ILLUM XM930 W/MTSQ FZ......  ......  ..........  ......  ..........  ......  ..........
    TANK AMMUNITION:                                                                                            
        CTG 120MM APFSDS-T M829A2/M829E3............       2       9,732       2       9,732  ......  ..........
        CTG 120MM HEAT-MP-T M830A1..................  ......  ..........  ......      15,000  ......     +15,000
        CTG TANK 120MM TP-T M831/M831A1.............     105      60,386     105      60,386  ......  ..........
        CTG TANK 120MM TPCSDS-T M865................     240     129,914     240     129,914  ......  ..........
    ARTILLERY AMMUNITION:                                                                                       
        CTG ARTY 75MM BLANK M337A1..................      34       1,566      34       1,566  ......  ..........
        CTG ARTY 105MM DPICM XM915..................  ......  ..........  ......  ..........  ......  ..........
        CTG ARTY 105MM HERA M913....................  ......         532  ......         532  ......  ..........
        PROJ ARTY 155MM SMOKE WP M825...............  ......  ..........  ......  ..........  ......  ..........
        PROJ ARTY 155MM HE M795.....................  ......  ..........  ......  ..........  ......  ..........
        PROJ ARTY 155MM SADARM M898.................     550      56,542     550      31,542  ......     -25,000
        PROJ ARTY 155MM HE M107.....................     124      25,650     124      25,650  ......  ..........
    ARTILLERY FUZES:                                                                                            
        FUZE ARTY ELEC TIME M767....................  ......  ..........  ......       5,000  ......      +5,000
        FUZE MULTI OPTION...........................       2       1,514       2       1,514  ......  ..........
    MINES:                                                                                                      
        MINE, TRAINING, ALL TYPES...................  ......         973  ......         973  ......  ..........
        MINE AT M87 (VOLCANO).......................  ......  ..........  ......      15,000  ......     +15,000
        WIDE AREA MUNITIONS.........................      65       9,625      65       9,625  ......  ..........
    ROCKETS:                                                                                                    
        BUNKER DEFEATING MUNITION (BDM).............  ......  ..........  ......  ..........  ......  ..........
        ROCKET, HYDRA 70, ALL TYPES.................  ......     126,055  ......     126,055  ......  ..........
    OTHER AMMUNITION:                                                                                           
        DEMOLITION MUNITIONS, ALL TYPES.............  ......       8,800  ......       8,800  ......  ..........
        GRENADES, ALL TYPES.........................  ......      21,382  ......      21,382  ......  ..........
        SIGNALS, ALL TYPES..........................  ......      12,985  ......      12,985  ......  ..........
        SIMULATORS, ALL TYPES.......................  ......       4,651  ......       4,651  ......  ..........
    MISCELLANEOUS:                                                                                              
        AMMO COMPONENTS, ALL TYPES..................  ......       7,241  ......       7,241  ......  ..........
        CAD/PAD ALL TYPES...........................  ......       2,320  ......       2,320  ......  ..........
        ITEMS LESS THAN $2 MILLION..................  ......       1,009  ......       1,009  ......  ..........
        AMMUNITION PECULIAR EQUIPMENT...............  ......      10,368  ......      10,368  ......  ..........
        FIRST DESTINATION TRANSPORTATION  (AMMO)....  ......       6,174  ......       6,174  ......  ..........
                                                     -----------------------------------------------------------
            TOTAL, AMMUNITION.......................  ......     827,163  ......     831,963  ......      +4,800
                                                     ===========================================================
AMMUNITION PRODUCTION BASE SUPPORT:                                                                             
    PRODUCTION BASE SUPPORT:                                                                                    
        PROVISION OF INDUSTRIAL FACILITIES..........  ......      47,660  ......      47,660  ......  ..........
        LAYAWAY OF INDUSTRIAL FACILITIES............  ......      15,362  ......      15,362  ......  ..........
        MAINTENANCE OF INACTIVE FACILITIES..........  ......      15,826  ......      15,826  ......  ..........
        CONVENTIONAL AMMO DEMILITARIZATION..........  ......      97,983  ......      82,983  ......     -15,000
        ARMS INITIATIVE.............................  ......       4,861  ......       4,861  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, AMMUNITION PRODUCTION BASE SUPPORT.  ......     181,692  ......     166,692  ......     -15,000
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......  ..........  ......  ..........
                                                     ===========================================================
      TOTAL, PROCUREMENT OF AMMUNITION, ARMY........  ......   1,008,855  ......     998,655  ......     -10,200
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

    Sense and destroy armor [SADARM].--The Army's budget 
request contained $56,542,000 for the procurement of basic 
SADARM. According to the Army, the product improved [PI] SADARM 
provides a 30-percent increase in effectiveness over basic 
SADARM. The Committee supports the development of PI SADARM, 
and recommends a decrease in basic SADARM of $25,000,000, and 
expects the Army to procure not less than 300 SADARM 
projectiles in 1999.
    Program and project funding adjustments.--The Committee 
recommends the adjustments for the following programs to 
reflect congressional priorities; to implement increases 
endorsed and/or requested by the Army to address budget 
shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Conventional ammunition demilitarization........................          97,983         -15,000          82,983
Ctg, 5.56 mm, all types.........................................          91,620          77,620         -14,000
Ctg, 7.62 mm, all types.........................................          10,463           7,263          -3,200
Ctg, 25 mm, all types...........................................          59,618          71,618         +12,000
Proj arty 155 mm SADARM M89.....................................          56,542          31,542         -25,000
Fuze arty elec time M767........................................  ..............           5,000          +5,000
Mine M87A1 (Volcano)............................................  ..............          15,000         +15,000
----------------------------------------------------------------------------------------------------------------

                           other adjustments

    The Committee recommends incorporating the following 
adjustment to the budget estimate, in accordance with the 
Senate authorization committee action:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Cartridge--tank 120 mm heat M830-A1.............................  ..............          15,000         +15,000
----------------------------------------------------------------------------------------------------------------

                        Other Procurement, Army

Appropriations, 1998....................................  $2,679,130,000
Budget estimate, 1999...................................   3,198,811,000
Committee recommendation................................   3,395,729,000

    The Committee recommends an appropriation of $3,395,729,000 
for the Army's fiscal year 1999 ``Other procurement'' account, 
$196,918,000 above the budget request.
    This appropriation finances the acquisition and lease of: 
tactical and commercial vehicles including trucks, 
semitrailers, and trailers of all types to provide mobility to 
field forces and the Army logistical system; communications and 
electronics equipment of all types to provide fixed, semifixed, 
and mobile strategic and tactical communications equipment; and 
other support equipment such as chemical defensive equipment, 
tactical bridging equipment, maintenance shop sets, 
construction equipment, floating and rail equipment, generators 
and power units, material-handling equipment, medical support 
equipment, special equipment for user testing, and training 
devices that are not specific to a particular weapon system. In 
each of these activities, funds are also included for 
modification of inservice equipment, spares and repair parts, 
and production base support.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                               Budget              Senate              compared 
                                                      Qty.    estimate    Qty.    allowance    Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
              OTHER PROCUREMENT, ARMY                                                                           
                                                                                                                
TACTICAL AND SUPPORT VEHICLES:                                                                                  
    TACTICAL VEHICLES:                                                                                          
        TACTICAL TRAILERS/DOLLY SETS...............  ......      11,948  ......      19,448  .......      +7,500
        SEMITRAILER FB BB/CONT TRANS 22 1/2 T......      97       2,625      97       2,625  .......  ..........
        SEMITRAILER LB 40T M870A1 (CCE)............      23       2,917      23       2,917  .......  ..........
        SEMITRAILER, TANK, 5000G...................      32       3,865      32       3,865  .......  ..........
        SEMITRAILER, TANK, 7500G, BULKHAUL.........      86       4,212      86       4,212  .......  ..........
        SEMITRAILER VAN CGO SUPPLY 12T 4WHL M129A2C      71       6,401      71       6,401  .......  ..........
        HI MOB MULTI-PURP WHLD VEH (HMMWV).........     110      12,144     110      77,844  .......     +65,700
        FAMILY OF MEDIUM TACTICAL VEH (FMTV).......   2,038     332,044   2,038     382,044  .......     +50,000
        FAMILY OF HEAVY TACTICAL VEHICLES (FHTV)...  ......     189,617  ......     189,617  .......  ..........
        ARMORED SECURITY VEHICLES (ASV)............  ......  ..........  ......  ..........  .......  ..........
        TRUCK, TRACTOR, LINE HAUL, M915/M916.......     440      59,503     440      59,503  .......  ..........
        TRUCK, TRACTOR, YARD TYPE, M878 (C/S)......      57       4,852      57       4,852  .......  ..........
        MEDIUM TRUCK EXTENDED SVC PGM (ESP)........   1,085      37,247   1,085      63,647  .......     +26,400
        LINE HAUL ESP..............................      62       4,883      62       4,883  .......  ..........
        HMMWV ESP..................................     387      24,832     387  ..........  .......     -24,832
        MODIFICATION OF IN SVC EQUIP...............  ......      13,306  ......      13,306  .......  ..........
        ITEMS LESS THAN $2.0M (TAC VEH)............  ......         186  ......         186  .......  ..........
    NON-TACTICAL VEHICLES:                                                                                      
        HEAVY ARMORED SEDAN........................      54       5,956  ......  ..........      -54      -5,956
        PASSENGER CARRYING VEHICLES................      37         867  ......  ..........      -37        -867
        GENERAL PURPOSE VEHICLES...................  ......       1,059  ......  ..........  .......      -1,059
        SPECIAL PURPOSE VEHICLES...................  ......       1,060  ......       1,060  .......  ..........
    SUPPORT EQUIPMENT AND FACILITIES:                                                                           
        SYSTEM FIELDING SUPPORT PEO................  ......         311  ......         311  .......  ..........
        PROJECT MANAGEMENT SUPPORT.................  ......       2,437  ......       1,437  .......      -1,000
        SYSTEM FIELDING SUPPORT (TACOM)............  ......       4,166  ......       3,166  .......      -1,000
                                                    ------------------------------------------------------------
          TOTAL, TACTICAL AND SUPPORT VE-  HICLES..  ......     726,438  ......     841,324  .......    +114,886
                                                    ============================================================
COMMUNICATIONS AND ELECTRONICS EQUIPMENT:                                                                       
    COMM--JOINT COMMUNICATIONS:                                                                                 
        COMBAT IDENTIFICATION PROGRAM..............  ......       4,890  ......       4,890  .......  ..........
        JCSE EQUIPMENT (USREDCOM)..................  ......       3,148  ......       3,148  .......  ..........
    COMM--SATELLITE COMMUNICATIONS:                                                                             
        DEFENSE SATELLITE COMMUNICATIONS SYSTEM                                                                 
         (SPAC.....................................  ......      94,616  ......      94,616  .......  ..........
        SHF TERM...................................  ......      25,328  ......      25,328  .......  ..........
        SAT TERM, EMUT (SPACE).....................  ......       2,485  ......       2,485  .......  ..........
        NAVSTAR GLOBAL POSITIONING SYSTEM (SPACE)..      14       6,866      14       6,866  .......  ..........
        GROUND COMMAND POST........................  ......  ..........  ......  ..........  .......  ..........
        SMART-T (SPACE)............................  ......      57,743  ......      57,743  .......  ..........
        SCAMP (SPACE)..............................  ......       4,708  ......       4,708  .......  ..........
        GLOBAL BRDCST SVC--GBS.....................  ......       5,873  ......       5,873  .......  ..........
        MOD OF IN-SVC EQUIP (TAC SAT)..............  ......       1,474  ......       1,474  .......  ..........
    COMM--C\3\ SYSTEM: ARMY GLOBAL CMD & CONTROL                                                                
     SYS (AGCCS)...................................  ......      20,562  ......      20,562  .......  ..........
    COMM--COMBAT COMMUNICATIONS:                                                                                
        ARMY DATA DISTRIBUTION SYSTEM (ADDS).......  ......      24,048  ......      52,048  .......     +28,000
        SINCGARS FAMILY............................  ......      13,212  ......      63,212  .......     +50,000
        JOINT TACTICAL AREA COMMS SYS..............  ......       9,925  ......       9,925  .......  ..........
        ACUS MOD PROGRAM (WIN-T/T).................  ......      97,080  ......     132,080  .......     +35,000
        C-E CONTINGENCY/FIELDING EQUIP.............  ......       2,166  ......       2,166  .......  ..........
        SOLDIER ENHANCEMENT PROGRAM COMM/                                                                       
         ELECTRONICS...............................  ......       4,593  ......       4,593  .......  ..........
        COMBAT SURVIVOR EVADER LOCATOR  (CSEL).....  ......      13,712  ......      13,712  .......  ..........
        MEDICAL COMM FOR CBT CASUALTY CARE (MC\4\).  ......       9,440  ......       9,440  .......  ..........
    COMM--INTELLIGENCE COMM: CI AUTOMATION                                                                      
     ARCHITECTURE..................................  ......       2,319  ......       2,319  .......  ..........
    INFORMATION SECUTITY:                                                                                       
        TSEC--ARMY KEY MGT SYS (AKMS)..............  ......      10,315  ......      10,315  .......  ..........
        INFORMATION SYSTEM SECURITY PROGRAM--ISSP..  ......      29,714  ......      33,714  .......      +4,000
    COMM--LONG HAUL COMMUNICATIONS:                                                                             
        TERRESTRIAL TRANSMISSION...................  ......       1,953  ......       1,953  .......  ..........
        BASE SUPPORT COMMUNICATIONS................  ......       1,124  ......       1,124  .......  ..........
        ARMY DISN ROUTER...........................  ......       3,614  ......       3,614  .......  ..........
        ELECTROMAG COMP PROG (EMCP)................  ......         452  ......         452  .......  ..........
        WW TECH CON IMP PROG (WWTCIP)..............  ......       2,031  ......       2,031  .......  ..........
    COMM--BASE COMMUNICATIONS:                                                                                  
        INFORMATION SYSTEMS........................  ......      91,213  ......     122,213  .......     +31,000
        DEFENSE MESSAGE SYSTEM (DMS)...............  ......      16,723  ......      16,723  .......  ..........
        LOCAL AREA NETWORK (LAN)...................  ......       9,978  ......       9,978  .......  ..........
        PENTAGON INFORMATION MGT AND TELE-  COM....  ......      39,195  ......      39,195  .......  ..........
    ELECT EQUIP--NAT FOR INT PROG (NFIP):                                                                       
        FOREIGN COUNTERINTELLIGENCE PROG  (FCI)....  ......         876  ......         876  .......  ..........
        GENERAL DEFENSE INTELL PROG (GDIP).........  ......      21,562  ......      21,562  .......  ..........
        ITEMS LESS THAN $2.0M (INTEL SPT)--TIARA...  ......  ..........  ......  ..........  .......  ..........
    ELECT EQUIP--TACT INT REL ACT (TIARA):                                                                      
        ALL SOURCE ANALYSIS SYS (ASAS) (TIARA).....  ......      24,117  ......      24,117  .......  ..........
        JTT/CIBS-M (TIARA).........................      56       5,340      56       5,340  .......  ..........
        IEW--GND BASE COMMON SENSORS  (TIARA)......  ......      25,388  ......  ..........  .......     -25,388
        JOINT STARS (ARMY) (TIARA).................  ......      87,229  ......      87,229  .......  ..........
        NATO-AGS...................................  ......  ..........  ......  ..........  .......  ..........
        INTEGRATED BROADCAST TERMINAL MODS (TIARA).  ......       6,487  ......       6,487  .......  ..........
        DIGITAL TOPOGRAPHIC SPT SYS (DTSS) (TIARA).      12      21,230      12      21,230  .......  ..........
        TACTICAL EXPLOITATION OF NATIONAL                                                                       
         CAPABILITY................................  ......       1,690  ......       1,690  .......  ..........
        JOINT TACTICAL GROUND STATION MODS.........  ......       2,638  ......       2,638  .......  ..........
        TROJAN (TIARA).............................  ......       3,991  ......       3,991  .......  ..........
        MOD OF IN-SVC EQUIP (INTEL SPT) (TIARA)....  ......       4,891  ......       4,891  .......  ..........
        CI HUMINT AUTOMATED TOOL SET (CHATS)                                                                    
         (TIARA)...................................  ......       3,700  ......       3,700  .......  ..........
        ITEMS LESS THAN $2.0M (TIARA)..............  ......         530  ......       2,530  .......      +2,000
    ELECT EQUIP--ELECTRONIC WARFARE (EW):                                                                       
        SHORTSTOP..................................  ......  ..........  ......  ..........  .......  ..........
        COUNTERINTELLIGENCE/SECURITY                                                                            
         COUNTERMEASURES...........................  ......       1,725  ......       1,725  .......  ..........
    ELECT EQUIP--TACTICAL SURV. (TAC SURV):                                                                     
        SENTINEL (FAAD GBS)........................      23      58,247      23      58,247  .......  ..........
        TARGET LOCATION OBSERVATION SYSTEM (TLOS)..     238      11,787     238      11,787  .......  ..........
        NIGHT VISION DEVICES.......................  ......      29,636  ......      53,136  .......     +23,500
        LTWT VIDEO RECON SYSTEM (LWVRS)............     110       3,364     110       9,364  .......      +6,000
        NIGHT VISION, THERMAL WPN SIGHT............   1,522      36,110   1,522      36,110  .......  ..........
        ARTILLERY ACCURACY EQUIP...................  ......      11,004  ......      11,004  .......  ..........
        MOD OF IN-SVC EQUIP (TAC SURV).............  ......       5,477  ......       5,477  .......  ..........
        INTEGRATED MET SYS SENSORS (IMETS)--TIARA..       5       4,890       5       4,890  .......  ..........
    ELECT EQUIP--TACTICAL C\2\ SYSTEMS:                                                                         
        TACTICAL OPERATIONS CENTERS................  ......      26,703  ......      26,703  .......  ..........
        ADV FIELD ARTILLERY TACT DATA SYS (AFATDS).     212      36,671     212      36,671  .......  ..........
        FIRE SUPPORT ADA CONVERSION................  ......  ..........  ......  ..........  .......  ..........
        CMBT SVC SUPT CONTROL SYS (CSSCS)..........     122       9,332     122       9,332  .......  ..........
        FAAD C\2\..................................       2      14,204       2      14,204  .......  ..........
        FORWARD ENTRY DEVICE (FED).................  ......      25,040  ......      25,040  .......  ..........
        STRIKER-COMMAND AND CONTROL SYS-  TEM......      15       6,025      15       6,025  .......  ..........
        LIFE CYCLE SOFTWARE SUPPORT (LCSS).........  ......       1,174  ......       1,174  .......  ..........
        LOGTECH....................................  ......       3,238  ......       9,238  .......      +6,000
        TC AIMS II.................................  ......         445  ......         445  .......  ..........
        GUN LAYING AND POS SYS (GLPS)..............     126      11,781     126      11,781  .......  ..........
        ISYSCON EQUIPMENT..........................  ......      34,175  ......      34,175  .......  ..........
        MANEUVER CONTROL SYSTEM (MCS)..............      96      13,033      96      13,033  .......  ..........
        STAMIS TACTICAL COMPUTERS (STACOMP)........   1,633      48,248   1,633      48,248  .......  ..........
        STANDARD INTEGRATED CMD POST SYS-  TEM.....  ......      26,827  ......      26,827  .......  ..........
    ELECT EQUIP--AUTOMATION:                                                                                    
        ARMY TRAINING XX1 MODERNIZATION............  ......      32,635  ......      32,635  .......  ..........
        AUTOMATED DATA PROCESSING EQUIP............  ......     130,712  ......     130,712  .......  ..........
        RESERVE COMPONENT AUTOMATION SYS (RCAS)....  ......     108,192  ......     108,192  .......  ..........
    ELECT EQUIP--AUDIO VISUAL SYS (A/V):                                                                        
        AFRTS......................................  ......         487  ......         487  .......  ..........
        ITEMS LESS THAN $2.0M (A/V)................  ......       4,597  ......       4,597  .......  ..........
        CALIBRATION SETS EQUIPMENT.................  ......  ..........  ......  ..........  .......  ..........
        INTEGRATED FAMILY OF TEST EQUIP (IFTE).....  ......  ..........  ......  ..........  .......  ..........
    ELECT EQUIP-TEST MEAS&DIAG EQUIP (TMDE):                                                                    
        ELECT EQUIP--SUPPORT: PRODUCTION BASE                                                                   
         SUPPORT (C-E).............................  ......         403  ......         403  .......  ..........
                                                    ------------------------------------------------------------
            TOTAL, COMMUNICATIONS AND ELECTRONICS                                                               
             EQUIPMENT.............................  ......   1,516,331  ......   1,676,443  .......    +160,112
                                                    ============================================================
OTHER SUPPORT EQUIPMENT:                                                                                        
    CHEMICAL DEFENSIVE EQUIPMENT:                                                                               
        GEN SMK MECH:MTRZD DUAL PURP M56...........      76      15,110      76      15,110  .......  ..........
        GENERATOR, SMOKE, MECH M58.................      38      10,622      38      10,622  .......  ..........
        LT VEH OBSCURANT SMK SYS...................   2,363       4,633   2,363       4,633  .......  ..........
    BRIDGING EQUIPMENT: RIBBON BRIDGE..............  ......       8,824  ......       8,824  .......  ..........
    ENGINEER (NON-CONSTRUCTION) EQUIPMENT:                                                                      
        METALLIC MINE DETECTOR, VEHICLE MOUNTED....       2       3,775       2       3,775  .......  ..........
        BN COUNTERMINE SIP.........................  ......       3,670  ......       3,670  .......  ..........
    COMBAT SERVICE SUPPORT EQUIPMENT:                                                                           
        AIR CONDITIONERS VARIOUS SIZE/CAPAC-  ITY..  ......       4,650  ......       4,650  .......  ..........
        KITCHEN, CONTAINERIZED, FIELD (CK).........      77       7,435      77       7,435  .......  ..........
        SANITATION CENTER, FIELD FEEDING (FSC).....     108       1,364     108       1,364  .......  ..........
        FIRETRUCKS.................................  ......      15,000  ......      15,000  .......  ..........
        TRUCK, FIREFIGHTING, MULTI-PURPOSE.........       6       1,708       6       1,708  .......  ..........
        ARMY SPACE HEATER, 120,000 BTU (ASH).......     110       1,061     110       1,061  .......  ..........
        LAUNDRY ADVANCED SYSTEM (LADS).............      19       7,216      19       7,216  .......  ..........
        FLOODLIGHT SET, ELEC, TRL MTD, 3  LIGHTS...     113       1,944     113       1,944  .......  ..........
        SOLDIER ENHANCEMENT........................  ......       4,832  ......       4,832  .......  ..........
        LAND WARRIOR...............................     255      51,380  ......  ..........     -255     -51,380
        FORCE PROVIDER.............................       4      24,418       4      24,418  .......  ..........
        REFRIGERATION EQUIPMENT....................  ......       1,930  ......       1,930  .......  ..........
        ITEMS LESS THAN $2.0M (CSS-EQ).............  ......       4,749  ......       4,749  .......  ..........
        TANK ASSEMBLY FAB COLLAPSIBLE POL 10000G...  ......  ..........  ......  ..........  .......  ..........
    PETROLEUM EQUIPMENT:                                                                                        
        TANK ASSEMBLY FAB COLL POL 50000 G.........      17       7,393      17       7,393  .......  ..........
        PUMP ASSY, REGULATED, 350 GPM..............      10         358      10         358  .......  ..........
        INLAND PETROLEUM DISTRIBUTION SYS-  TEM....  ......       8,342  ......       8,342  .......  ..........
        FORWARD AREA REFUELING SYS ADV AVIATION....      18       5,329      18       5,329  .......  ..........
        ITEMS LESS THAN $2.0M (POL)................  ......       4,657  ......       4,657  .......  ..........
    WATER EQUIPMENT:                                                                                            
        SMALL MOBILE WATER CHILLER (SMWC)..........     310       2,897     310       2,897  .......  ..........
        ITEMS LESS THAN $2.0M (WATER EQ)...........  ......       1,255  ......       1,255  .......  ..........
    MEDICAL EQUIPMENT: COMBAT SUPPORT MEDI-  CAL...  ......      25,807  ......      25,807  .......  ..........
    MAINTENANCE EQUIPMENT:                                                                                      
        SHOP EQ CONTACT MAINTENANCE TRK MTD (MYP)..     180       7,897     180       7,897  .......  ..........
        WELDING SHOP, TRAILER MTD..................      55       3,044      55       3,044  .......  ..........
        ITEMS LESS THAN $2.0M (MAINT EQ)...........  ......       4,754  ......       4,754  .......  ..........
    CONSTRUCTION EQUIPMENT:                                                                                     
        DIST, BITUM MATERIAL 1500G TRK MTD.........      20       4,377      20       4,377  .......  ..........
        ROLLER, VIBRATORY, SELF-PROPELLED  (CCE)...  ......  ..........  ......  ..........  .......  ..........
        HYDRAULIC EXCAVATOR........................      26       6,402      26       6,402  .......  ..........
        DEPLOYABLE UNIVERSAL COMBAT EARTH MOVERS...      23       9,388      23       9,388  .......  ..........
        TRUCK, DUMP, 20T (CCE).....................      66      13,305      66      13,305  .......  ..........
        CRUSHING/SCREENING PLANT, 150 TPH..........       2       3,801       2       3,801  .......  ..........
        CRANE, WHEEL MTD, 25T, 3/4 CU YD, RT.......      47      11,553      47      11,553  .......  ..........
        ITEMS LESS THAN $2.0M (CONST EQUIP)........  ......       1,929  ......       1,929  .......  ..........
    RAIL FLOAT CONTAINERIZATION EQUIPMENT:                                                                      
        PUSHER TUG, SMALL..........................       1       4,269       1       4,269  .......  ..........
        FLOATING CRANE, 100-250 TON................  ......  ..........  ......  ..........  .......  ..........
        CONTAINERIZED MAINTENANCE FACILITY.........       1       5,300       1       5,300  .......  ..........
        CAUSEWAY SYSTEMS...........................  ......      17,083  ......      17,083  .......  ..........
        RAILWAY CAR, FLAT, 100 TON.................     148      12,804     148      12,804  .......  ..........
        ITEMS LESS THAN $2.0M (FLOAT/RAIL).........  ......       3,235  ......       3,235  .......  ..........
    GENERATORS: GENERATORS AND ASSOCIATED EQUIP....  ......      82,749  ......      82,749  .......  ..........
    MATERIAL HANDLING EQUIPMENT:                                                                                
        TRUCK, FORK LIFT, DE, PT, RT, 50000 LB.....     101      20,588     101      20,588  .......  ..........
        ALL TERRAIN LIFTING ARTICULATING SYS-  TEM.      47      15,228      47      15,228  .......  ..........
        ROUGH TERRAIN CONTAINER CRANE..............      30      13,615      30      13,615  .......  ..........
        ITEMS LESS THAN $2.0M (MHE)................  ......       1,672  ......       1,672  .......  ..........
    TRAINING EQUIPMENT:                                                                                         
        COMBAT TRAINING CENTERS SUPPORT............  ......      47,395  ......      47,395  .......  ..........
        TRAINING DEVICES, NONSYSTEM................  ......      56,755  ......      44,655  .......     -12,100
        SIMNET/CLOSE COMBAT TACTICAL TRAINER.......  ......     113,927  ......      88,927  .......     -25,000
        FIRE SUPPORT COMBINED ARMS TACTICAL TRAINER  ......      28,124  ......      28,124  .......  ..........
    TEST MEASURE AND DIG EQUIPMENT (TMD):                                                                       
        CALIBRATION SETS EQUIPMENT.................  ......       9,984  ......       9,984  .......  ..........
        INTEGRATED FAMILY OF TEST EQUIPMENT (IFTE).  ......      54,051  ......      64,051  .......     +10,000
        TEST EQUIPMENT MODERNIZATION  (TEMOD)......  ......      13,797  ......      13,797  .......  ..........
    OTHER SUPPORT EQUIPMENT:                                                                                    
        RECONFIGURABLE SIMULATORS..................  ......       1,967  ......       1,967  .......  ..........
        PHYSICAL SECURITY SYSTEMS (OPA3)...........  ......      16,164  ......      16,164  .......  ..........
        SYSTEM FIELDING SUPPORT (OPA-3)............  ......       7,143  ......       7,143  .......  ..........
        BASE LEVEL COM'L EQUIPMENT.................  ......       9,697  ......       9,697  .......  ..........
        TRANSPORTATION AUTOMATED MEASURING SYS                                                                  
         (TRAMS....................................  ......  ..........  ......  ..........  .......  ..........
        ELECTRONIC REPAIR SHELTER..................       2       3,694       2       3,694  .......  ..........
        MODIFICATION OF IN-SVC EQUIPMENT (OPA-3)...  ......      17,667  ......      17,667  .......  ..........
        PRODUCTION BASE SUPPORT (OTH)..............  ......       2,274  ......       2,274  .......  ..........
        SPECIAL EQUIPMENT FOR USER TESTING.........  ......      15,062  ......      15,062  .......  ..........
        MA8975.....................................  ......       6,020  ......       6,020  .......  ..........
                                                    ------------------------------------------------------------
          TOTAL, OTHER SUPPORT EQUIPMENT...........  ......     877,073  ......     798,593  .......     -78,480
                                                    ============================================================
SPARE AND REPAIR PARTS:                                                                                         
    INITIAL SPARES--TSV............................  ......       4,433  ......       4,433  .......  ..........
    INITIAL SPARES--C&E............................  ......      73,362  ......      73,362  .......  ..........
    INITIAL SPARES--OTHER SUPPORT EQUIP............  ......       1,174  ......       1,174  .......  ..........
                                                    ------------------------------------------------------------
      TOTAL, SPARE AND REPAIR PARTS................  ......      78,969  ......      78,969  .......  ..........
                                                    ============================================================
RADIO FREQUENCY TECHNOLOGY.........................  ......  ..........  ......  ..........  .......  ..........
PALLETIZED LOADING SYSTEM ENHANCED.................  ......  ..........  ......  ..........  .......  ..........
VEHICLE LEASES.....................................  ......  ..........  ......         400  .......        +400
ECONOMIC ASSUMPTIONS...............................  ......  ..........  ......  ..........  .......  ..........
                                                    ============================================================
      TOTAL, OTHER PROCUREMENT, ARMY...............  ......   3,198,811  ......   3,395,729  .......    +196,918
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Program and project funding increases.--The Committee 
recommends the addition of funds for the following programs to 
reflect congressional priorities and to implement increases 
endorsed and/or requested by the Army to address budget 
shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Tactical trailers/dolly sets....................................          11,948          19,448          +7,500
Information System Security Program [ISSP]......................          29,714          33,714          +4,000
Information systems.............................................          91,213         122,213         +31,000
Items less than $2,000,000 [TIARA]..............................             530           2,530          +2,000
LTWT video reconnaissance system [LWVRS]........................           3,364           9,364          +6,000
LOGTECH.........................................................           3,238           9,238          +6,000
Integrated family of test equipment [IFTE]......................          54,051          64,051         +10,000
Vehicle lease...................................................  ..............  ..............            +400
----------------------------------------------------------------------------------------------------------------

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are excess to firm 
program requirements based on delays in the release of prior-
year funds; late contract efforts; slow execution of prior-year 
funds; differences between the budget request and the actual 
program plans; or are lower priority relative to other 
programs.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
HMMWV ESP.......................................................          24,832  ..............         -24,832
Heavy armored sedan.............................................           5,956  ..............          -5,956
Passenger carrying vehicles.....................................             867  ..............            -867
General purpose vehicles........................................           1,059  ..............          -1,059
IEW-GND base common sensors [TIARA].............................          25,388  ..............         -25,388
Land Warrior....................................................          51,380  ..............         -51,380
SIMNET/close combat tactical trainer............................         113,927          88,927         -25,000
----------------------------------------------------------------------------------------------------------------

    IEW-Gnd base common sensors [TIARA].--The Committee 
recommends a reduction based on significant technical 
difficulties and further delay of initial operational test and 
evaluation [IOT&E].
    Simnet/close combat tactical trainer [CCTT].--The Committee 
recommends a reduction based on delays as a result of a 1-year 
slip in operational test and evaluation [IOT&E].
    Land warrior.---The Committee recommends a reduction in the 
Land Warrior Program based on significant technical 
difficulties in hardware/software integration and schedule 
slip.

                           OTHER ADJUSTMENTS

    The Committee recommends incorporating the following 
adjustments to the budget estimate, in accordance with the 
Senate authorization committee action.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Hi MOB Multipurpose whld veh [HMMWV]............................          12,144          77,844         +65,700
Family of medium tactical vehicle [FMTV]........................         332,044         382,044         +50,000
Medium truck extended service program [ESP].....................          37,247          63,647         +26,400
Army data distribution system [ADDS]............................          24,048          52,048         +28,000
SINCGARS family.................................................          13,212          63,212         +50,000
ACUS mod program [WIN-T/T]......................................          97,080         132,080         +35,000
Project management support......................................           2,437           1,437          -1,000
System fielding support [TACOM].................................           4,166           3,166          -1,000
Training devices, nonsystem.....................................          56,755          44,655         -12,100
Night vision devices............................................          29,636          53,136         +23,500
----------------------------------------------------------------------------------------------------------------

    Tactical trailers/dolly sets.--The Committee recommends an 
additional $7,500,000 in tactical trailers/dolly sets only for 
the self-load/off-load trailer [SLOT].
    Firefighter Trainer Program.--The Committee recommends an 
additional $4,000,000 in nonsystem training devices only for 
the Firefighter Trainer Program.
    Night vision equipment.--The Committee recommends an 
additional $10,000,000 only for 25 mm generation III image 
intensifier tubes.
    Secure terminal equipment.--The Committee recommends an 
additional $4,000,000 in the Information System Security 
Program [ISSP] only for the Tactical Secure Terminal Equipment 
Program.
    Improved remotely monitored battlefield sensor system 
[IREMBASS].--The Committee recommends an additional $2,000,000 
in items less than $2,000,000 only for the IREMBASS Program.
    LOGTECH.--The Committee recommends an additional $6,000,000 
in LOGTECH only for the business process server.

                       Aircraft Procurement, Navy

Appropriations, 1998....................................  $6,535,444,000
Budget estimate, 1999...................................   7,466,734,000
Committee recommendation................................   7,473,403,000

    The Committee recommends $7,473,403,000, an increase of 
$6,669,000 to the budget request. This appropriation account 
finances the construction, procurement, production, 
modification, and modernization of aircraft, including ordnance 
systems, ground support equipment, flight simulators, spare 
parts, accessories, and specialized equipment; and expansion of 
public and private plants.

                     COMMITTEE RECOMMENDED PROGRAM

    The Committee recommendation increases funds to procure 
additional electronic countermeasure assets, to purchase Marine 
Corps' night targeting systems, and to accelerate modifications 
of the Navy's P-3 surveillance warfare aircraft. The 
Committee's adjustments are reflected in the following tables 
and discussed in the text which follows.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                               Budget              Senate            compared to
                                                      Qty.    estimate    Qty.    allowance   Qty.      budget  
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
             AIRCRAFT PROCUREMENT, NAVY                                                                         
                                                                                                                
COMBAT AIRCRAFT:                                                                                                
    AV-8B (V/STOL)HARRIER..........................      12     282,713      12     282,713  ......  ...........
    AV-8B (V/STOL)HARRIER (AP-CY)..................  ......      55,686  ......      55,686  ......  ...........
    F/A-18E/F (FIGHTER) HORNET.....................      30   2,787,783      30   2,787,783  ......  ...........
    F/A-18E/F (FIGHTER) HORNET (AP-CY).............  ......     109,438  ......     109,438  ......  ...........
    V-22 (MEDIUM LIFT).............................       7     610,766       7     610,766  ......  ...........
    V-22 (MEDIUM LIFT) (AP-CY).....................  ......      54,020  ......      54,020  ......  ...........
    E-2C (EARLY WARNING) HAWKEYE...................       3     206,384       3     206,384  ......  ...........
    E-2C (EARLY WARNING) HAWKEYE (AP-CY)...........  ......     182,947  ......     182,947  ......  ...........
                                                    ------------------------------------------------------------
      TOTAL, COMBAT AIRCRAFT.......................  ......   4,289,737  ......   4,289,737  ......  ...........
                                                    ============================================================
AIRLIFT AIRCRAFT:                                                                                               
    CH-60..........................................       4     106,027       4     106,027  ......  ...........
    CH-60 (AP-CY)..................................  ......      26,160  ......      26,160  ......  ...........
                                                    ------------------------------------------------------------
      TOTAL, AIRLIFT AIRCRAFT......................  ......     132,187  ......     132,187  ......  ...........
                                                    ============================================================
TRAINER AIRCRAFT:                                                                                               
    T-45TS (TRAINER) GOSHAWK.......................      15     282,667      15     282,667  ......  ...........
    T-45TS (TRAINER) GOSHAWK (AP-CY)...............  ......      60,159  ......       8,000  ......      -52,159
                                                    ------------------------------------------------------------
      TOTAL, TRAINER AIRCRAFT......................  ......     342,826  ......     290,667  ......      -52,159
                                                    ============================================================
OTHER AIRCRAFT: KC-130J............................  ......  ..........  ......  ..........  ......  ...........
MODIFICATION OF AIRCRAFT:                                                                                       
    EA-6 SERIES....................................  ......      75,735  ......      80,735  ......       +5,000
    AV-8 SERIES....................................  ......      99,109  ......      99,109  ......  ...........
    F-14 SERIES....................................  ......     223,661  ......     223,661  ......  ...........
    ADVERSARY......................................  ......       1,292  ......       1,292  ......  ...........
    ES-3 SERIES....................................  ......       5,172  ......  ..........  ......       -5,172
    F-18 SERIES....................................  ......     198,049  ......     198,049  ......  ...........
    H-46 SERIES....................................  ......      31,863  ......      31,863  ......  ...........
    AH-1W SERIES...................................  ......      22,394  ......      33,394  ......      +11,000
    H-53 SERIES....................................  ......      37,829  ......      37,829  ......  ...........
    SH-60 SERIES...................................  ......     137,997  ......     137,997  ......  ...........
    H-1 SERIES.....................................  ......      18,220  ......      18,220  ......  ...........
    H-3 SERIES.....................................  ......          34  ......          34  ......  ...........
    EP-3 SERIES....................................  ......       5,437  ......       7,437  ......       +2,000
    P-3 SERIES.....................................  ......     268,633  ......     279,133  ......      +10,500
    S-3 SERIES.....................................  ......      45,997  ......      45,997  ......  ...........
    E-2 SERIES.....................................  ......      91,502  ......      91,502  ......  ...........
    TRAINER A/C SERIES.............................  ......       7,399  ......       7,399  ......  ...........
    C-2A...........................................  ......      18,113  ......      18,113  ......  ...........
    C-130 SERIES...................................  ......       4,040  ......       4,040  ......  ...........
    FEWSG..........................................  ......         557  ......         557  ......  ...........
    CARGO/TRANSPORT A/C SERIES.....................  ......      27,179  ......      38,179  ......      +11,000
    E-6 SERIES.....................................  ......      64,660  ......      64,660  ......  ...........
    EXECUTIVE HELICOPTERS SERIES...................  ......      26,147  ......      26,147  ......  ...........
    SPECIAL PROJECT AIRCRAFT.......................  ......      17,729  ......      17,729  ......  ...........
    T-45 SERIES....................................  ......       8,499  ......       8,499  ......  ...........
    POWER PLANT CHANGES............................  ......      15,283  ......      15,283  ......  ...........
    COMMON ECM EQUIPMENT...........................  ......      37,375  ......      58,875  ......      +21,500
    COMMON AVIONICS CHANGES........................  ......     104,697  ......     104,697  ......  ...........
                                                    ------------------------------------------------------------
      TOTAL, MODIFICATION OF AIRCRAFT..............  ......   1,594,602  ......   1,650,430  ......      +55,828
                                                    ============================================================
AIRCRAFT SPARES AND REPAIR PARTS: SPARES AND REPAIR                                                             
 PARTS.............................................  ......     727,838  ......     727,838  ......  ...........
AIRCRAFT SUPPORT EQUIPMENT AND FACILITIES:                                                                      
    COMMON GROUND EQUIPMENT........................  ......     330,952  ......     333,952  ......       +3,000
    AIRCRAFT INDUSTRIAL FACILITIES.................  ......      13,753  ......      13,753  ......  ...........
    WAR CONSUMABLES................................  ......      11,197  ......      11,197  ......  ...........
    OTHER PRODUCTION CHARGES.......................  ......       7,552  ......       7,552  ......  ...........
    SPECIAL SUPPORT EQUIPMENT......................  ......      14,377  ......      14,377  ......  ...........
    FIRST DESTINATION TRANSPORTATION...............  ......       1,713  ......       1,713  ......  ...........
                                                    ------------------------------------------------------------
      TOTAL, AIRCRAFT SUPPORT EQUIPMENT AND                                                                     
       FACILITIES..................................  ......     379,544  ......     382,544  ......       +3,000
ECONOMIC ASSUMPTIONS...............................  ......  ..........  ......  ..........  ......  ...........
                                                    ============================================================
      TOTAL, AIRCRAFT PROCUREMENT, NAVY............  ......   7,466,734  ......   7,473,403  ......       +6,669
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are not supported 
by firm requirements or out-year procurement funds; are 
premature until related, preliminary efforts are completed, and 
the results evaluated; are lower priority relative to other 
projects; are duplicative of other DOD projects; are increasing 
without a firm justification; or can be deferred without 
adversely affecting program activities.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
T-45 advance procurement (CY)...................................          60,159           8,000         -52,159
    Multiyear procurement funds reduction.......................  ..............         -52,159         -52,159
ES-3 series.....................................................           5,172  ..............          -5,172
    Program reduction based on Navy deferral....................  ..............          -5,172          -5,172
----------------------------------------------------------------------------------------------------------------

    Program and project funding increases.--The Committee 
recommends the addition of funds for the following projects and 
programs to reflect congressional priorities; to rectify 
shortfalls in the budget request for activities; to implement 
increases endorsed and/or requested by the Navy to address 
budget shortfalls; and to effect funding transfers recommended 
by the Committee or the Navy.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
EA-6 series.....................................................          75,735          80,735          +5,000
    ALQ-99 band 9/10 transmitter................................  ..............           5,000          +5,000
Cargo/transport A/C series......................................          27,179          38,179         +11,000
    C-20 repair.................................................  ..............          11,000         +11,000
Common ECM equipment............................................          37,375          58,875         +21,500
    AN/ALR-67(V)2 radar warning receiver upgrades...............  ..............           5,000          +5,000
    AN/APR-39 radar warning receivers...........................  ..............           6,500          +6,500
    ALQ-165 suites..............................................  ..............          10,000         +10,000
Common ground equipment.........................................         330,952         333,952          +3,000
    Direct support squadron readiness training  [DSSRT].........  ..............           3,000          +3,000
----------------------------------------------------------------------------------------------------------------

    Authorization adjustments.--The Committee recommends the 
following adjustments based on the recommendations reported in 
the Senate bill authorizing programs and activities of the 
Department of Defense [DOD] for fiscal year 1999:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
AH-1W series....................................................          22,394          33,394         +11,000
    Super Cobra night targeting system..........................  ..............          11,000         +11,000
EP-3 series.....................................................           5,437           7,437          +2,000
    Spares and repairs..........................................  ..............           2,000          +2,000
P-3 series......................................................         268,633         279,133         +10,500
    Antisurface Warfare Improvement Program [AIP] kits..........  ..............          12,200         +12,200
    Lightweight environmentally sealed parachute assembly                                                       
     [LESPA] \1\................................................  ..............           7,400          +7,400
    P-3 weapon system trainer \2\...............................  ..............          -9,100          -9,100
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project increases'' heading of 
  this report section.                                                                                          
\2\ Program reduction recommended as described under the heading ``Program reductions and deferrals.''          

    T-45 advance procurement.--The Committee recommendation 
provides $8,000,000 for advance procurement costs associated 
with the planned procurement of 15 T-45 aircraft in fiscal year 
2000. The Committee recommendation deletes $52,159,000 of 
advance procurement funds budgeted to begin a multiyear 
procurement. The Committee fully supports T-45 procurement and 
applauds the Navy's compression of the schedule to reduce 
acquisition costs. However, the Committee believes the limited 
additional savings available through a multiyear procurement 
contract are not sufficient to justify this acquisition 
approach. Indeed, there is an equal chance that inflation 
savings and learning curve benefits will achieve comparable 
savings using annual contracts.
    The Committee has provided $8,000,000 for T-45 advance 
procurement. The Committee directs that these funds are 
available only to initiate the procurement of 15 T-45 aircraft 
in fiscal year 2000. The Committee will reconsider the Defense 
Department's request for T-45 multiyear procurement authority 
if the Department and industry can identify additional 
multiyear procurement savings adequate to justify multiyear 
acquisition authority.
    P-3 series.--The Committee recommends $279,133,000, an 
increase of $10,500,000 above the budget request as outlined in 
the table accompanying this report section. Within the funds 
appropriated pursuant to the budget request, the Committee 
directs that up to $5,000,000 is available for the replacement 
data storage system [RDSS].
    Common ECM equipment.--The Committee understands the acute 
shortage of ALQ-165 electronic warfare jamming devices has left 
the Department of the Navy without adequate numbers to support 
deploying F-14D's and F/A-18C/D's. The Marine Corps F/A-18's 
have only three suites remaining and some overseas deploying 
Navy squadrons will remain unprotected against specific threats 
the ALQ-165 counters for nearly 4 months. Therefore, the 
Committee has provided an increase of $10,000,000 for the 
procurement of 18 ALQ-165 suites. Additionally, the Committee 
directs the Department of the Navy to develop a program for 
fiscal year 2000 and beyond which fully satisfies the 
requirements of its deploying forces during the interim period 
until IDECM is fully operational.

                       Weapons Procurement, Navy

Appropriations, 1998....................................  $1,102,193,000
Budget estimate, 1999...................................   1,327,545,000
Committee recommendation................................   1,324,045,000

    The Committee recommends an appropriation of $1,324,045,000 
for the Navy's fiscal year 1999 ``Weapons procurement'' 
account, a decrease of $3,500,000 from the budget request.
    This appropriation finances the construction, procurement, 
production, modification, and modernization of strategic and 
tactical missiles, torpedoes, other weapons, related support 
equipment (including spare parts and accessories), and the 
expansion of public and private plants.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                                Budget              Senate             compared 
                                                       Qty.    estimate    Qty.    allowance   Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
              WEAPONS PROCUREMENT, NAVY                                                                         
                                                                                                                
BALLISTIC MISSILES:                                                                                             
    TRIDENT II......................................       5     260,652       5     260,652  ......  ..........
    TRIDENT II (AP-CY)..............................  ......      62,800  ......      42,800  ......     -20,000
    SUPPORT EQUIPMENT AND FACILITIES: MISSILE                                                                   
     INDUSTRIAL FACILITIES..........................  ......         198  ......         198  ......  ..........
                                                     -----------------------------------------------------------
        TOTAL, BALLISTIC MISSILES...................  ......     323,650  ......     303,650  ......     -20,000
OTHER MISSILES:                                                                                                 
    STRATEGIC MISSILES:                                                                                         
        TOMAHAWK....................................     114     129,758     114     129,758  ......  ..........
        ESSM........................................      28      35,672      28      35,672  ......  ..........
    TACTICAL MISSILES:                                                                                          
        AMRAAM......................................     115      62,641     115      51,641  ......     -11,000
        JSOW........................................     328     125,207     328     125,207  ......  ..........
        STANDARD MISSILE............................     120     225,702     120     210,702  ......     -15,000
        RAM.........................................     100      44,766     100      44,766  ......  ..........
        HELLFIRE....................................  ......  ..........  ......  ..........  ......  ..........
        PENGUIN.....................................  ......  ..........  ......       7,500  ......      +7,500
        AERIAL TARGETS..............................  ......      75,474  ......      75,474  ......  ..........
        DRONES AND DECOYS...........................  ......         298  ......      10,298  ......     +10,000
        OTHER MISSILE SUPPORT.......................  ......      15,238  ......      15,238  ......  ..........
    MODIFICATION OF MISSILES:                                                                                   
        SIDEWINDER MODS.............................  ......  ..........  ......  ..........  ......  ..........
        HARPOON MODS................................  ......      39,506  ......      39,506  ......  ..........
        STANDARD MISSILES MODS......................  ......      45,303  ......      45,303  ......  ..........
    SUPPORT EQUIPMENT AND FACILITIES: WEAPONS                                                                   
     INDUSTRIAL FACILITIES..........................  ......      27,133  ......      27,133  ......  ..........
    ORDNANCE SUPPORT EQUIPMENT: ORDNANCE SUPPORT                                                                
     EQUIPMENT......................................  ......       6,210  ......       6,210  ......  ..........
                                                     -----------------------------------------------------------
        TOTAL, OTHER MISSILES.......................  ......     832,908  ......     824,408  ......      -8,500
                                                     ===========================================================
TORPEDOES AND RELATED EQUIPMENT:                                                                                
    ASW TARGETS.....................................  ......       4,152  ......       4,152  ......  ..........
    MOD OF TORPEDOES AND RELATED EQUIP:                                                                         
        MK-46 TORPEDO MODS..........................  ......          15  ......          15  ......  ..........
        MK-48 TORPEDO ADCAP MODS....................  ......      52,813  ......      52,813  ......  ..........
    SUPPORT EQUIPMENT:                                                                                          
        TORPEDO SUPPORT EQUIPMENT...................  ......      24,206  ......      24,206  ......  ..........
        ASW RANGE SUPPORT...........................  ......      14,672  ......      14,672  ......  ..........
    DESTINATION TRANSPORTATION: FIRST DESTINATION                                                               
     TRANSPORTATION.................................  ......       1,979  ......       1,979  ......  ..........
                                                     -----------------------------------------------------------
        TOTAL, TORPEDOES AND RELATED EQUIP-  MENT...  ......      97,837  ......      97,837  ......  ..........
                                                     ===========================================================
OTHER WEAPONS:                                                                                                  
    GUNS AND GUN MOUNTS: SMALL ARMS AND WEAPONS.....  ......         874  ......         874  ......  ..........
    MODIFICATION OF GUNS AND GUN MOUNTS:                                                                        
        CIWS MODS...................................  ......       2,778  ......      12,778  ......     +10,000
        5/54 GUN MOUNT MODS.........................  ......         909  ......      15,909  ......     +15,000
        MK-75 76MM GUN MOUNT MODS...................  ......       1,951  ......       1,951  ......  ..........
        MODS UNDER $2 MILLION.......................  ......       1,279  ......       1,279  ......  ..........
    OTHER: PIONEER..................................  ......      19,441  ......      19,441  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, OTHER WEAPONS..........................  ......      27,232  ......      52,232  ......     +25,000
SPARES AND REPAIR PARTS.............................  ......      45,918  ......      45,918  ......  ..........
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......  ..........  ......  ..........
                                                     ===========================================================
      TOTAL, WEAPONS PROCUREMENT, NAVY..............  ......   1,327,545  ......   1,324,045  ......      -3,500
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are excess to firm 
program requirements based on delays in the release of prior-
year funds; late contract efforts; slow execution of prior-year 
funds; differences between the budget request and the actual 
program plans; or are lower priority relative to other 
programs.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Trident II (AP-CY)..............................................          62,800          42,800         -20,000
AMRAAM..........................................................          62,641          51,641         -11,000
Standard missile................................................         225,702         210,702         -15,000
----------------------------------------------------------------------------------------------------------------

    Trident II.--The Committee is uncertain how long the Navy 
will continue to procure Trident II missiles and believes that 
funding for advance procurement of the Trident II missile in 
fiscal year 2004 is premature. Therefore, the Committee 
recommends a reduction of $20,000,000.
    Tactical missiles.--The Committee recommends reductions in 
the advanced medium range air-to-air missile [AMRAAM], and 
standard missile based on recommendations from the GAO 
concerning savings in production resulting from the merger of 
Raytheon and Hughes missile systems companies. The Committee 
also recommends a $8,900,000 reduction in the standard missile 
block IVA support costs.
    Drones and Decoys.--The Committee recommends $10,000,000 
only for the procurement of the improved tactical air launched 
decoy [ITALD].

                           OTHER ADJUSTMENTS

    The Committee recommends incorporating the following 
adjustments to the budget estimate, in accordance with the 
Senate authorization committee action.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Penguin.........................................................  ..............           7,500          +7,500
Drones and decoys...............................................             298          10,298         +10,000
CIWS mods.......................................................           2,778          12,778         +10,000
5/54 gun mount mods.............................................             909          15,909         +15,000
----------------------------------------------------------------------------------------------------------------

            Procurement of Ammunition, Navy and Marine Corps

Appropriations, 1998....................................    $397,547,000
Budget estimate, 1999...................................     429,539,000
Committee recommendation................................     480,739,000

    The Committee recommends an appropriation of $480,739,000 
for Navy and Marine Corps ammunition for fiscal year 1999. This 
is $51,200,000 above the President's budget request.
    This appropriation finances the acquisition of ammunition, 
ammunition modernization, and ammunition-related material for 
the Navy and marine Corps.

                     committee recommended programs

    The following table details the Committee recommendation in 
comparison with the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                                Budget              Senate             compared 
                                                       Qty.    estimate    Qty.    allowance   Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
   PROCUREMENT OF AMMUNITION, NAVY & MARINE CORPS                                                               
                                                                                                                
PROC AMMO, NAVY:                                                                                                
    NAVY AMMUNITION:                                                                                            
        GENERAL PURPOSE BOMBS.......................  ......      22,904  ......      34,904  ......     +12,000
        JDAM........................................     898      41,363     898      41,363  ......  ..........
        2.75 INCH ROCKETS...........................  ......      16,147  ......      16,147  ......  ..........
        MACHINE GUN AMMUNITION......................  ......       8,816  ......       8,816  ......  ..........
        PRACTICE BOMBS..............................  ......      40,134  ......      40,134  ......  ..........
        CARTRIDGES & CART ACTUATED DEVICES..........  ......      25,982  ......      25,982  ......  ..........
        AIRCRAFT ESCAPE ROCKETS.....................  ......      10,370  ......      10,370  ......  ..........
        AIR EXPENDABLE COUNTERMEASURES..............  ......      29,059  ......      29,059  ......  ..........
        MARINE LOCATION MARKERS.....................  ......       1,350  ......       1,350  ......  ..........
        JATOS.......................................  ......       3,893  ......       3,893  ......  ..........
        5 INCH/54 GUN AMMUNITION....................  ......      21,853  ......      21,853  ......  ..........
        EXTENDED RANGE GUIDED MUNITIONS  (ERGM).....  ......      27,452  ......      37,452  ......     +10,000
        CIWS AMMUNITION.............................  ......         660  ......         660  ......  ..........
        76MM GUN AMMUNITION.........................  ......       3,761  ......       3,761  ......  ..........
        OTHER SHIP GUN AMMUNITION...................  ......       4,548  ......       4,548  ......  ..........
        SMALL ARMS & LANDING PARTY AMMO.............  ......       7,752  ......       7,752  ......  ..........
        PYROTECHNIC AND DEMOLITION..................  ......       8,938  ......       8,938  ......  ..........
        MINE NEUTRALIZATION DEVICES.................  ......       7,884  ......       7,884  ......  ..........
        20MM PGU-28.................................  ......  ..........  ......  ..........  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, PROC AMMO, NAVY....................  ......     282,866  ......     304,866  ......     +22,000
                                                     ===========================================================
PROC AMMO, MC:                                                                                                  
    MARINE CORPS AMMUNITION:                                                                                    
        5.56 MM, ALL TYPES..........................  ......      25,750  ......      26,250  ......        +500
        7.62 MM, ALL TYPES..........................  ......         196  ......         896  ......        +700
        LINEAR CHARGES, ALL TYPES...................  ......       7,603  ......       7,603  ......  ..........
        .50 CALIBER.................................  ......       1,180  ......       1,680  ......        +500
        40 MM, ALL TYPES............................  ......      11,565  ......      11,565  ......  ..........
        81MM, ALL TYPES.............................  ......      16,076  ......      16,076  ......  ..........
        120MM, ALL TYPES............................  ......      14,054  ......      18,054  ......      +4,000
        CTG 25MM, ALL TYPES.........................  ......       3,860  ......       4,860  ......      +1,000
        9 MM ALL TYPES..............................  ......       2,332  ......       3,332  ......      +1,000
        GRENADES, ALL TYPES.........................  ......       4,893  ......       5,893  ......      +1,000
        ROCKETS, ALL TYPES..........................  ......      21,346  ......      39,346  ......     +18,000
        DEMOLITION MUNITIONS, ALL TYPES.............  ......       7,737  ......       7,737  ......  ..........
        FUZE, ALL TYPES.............................  ......      13,645  ......      16,145  ......      +2,500
        NON LETHALS.................................  ......         984  ......         984  ......  ..........
        AMMO MODERNIZATION..........................  ......      12,007  ......      12,007  ......  ..........
        ITEMS LESS THAN $2 MIL......................  ......       3,445  ......       3,445  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, PROC AMMO, MC......................  ......     146,673  ......     175,873  ......     +29,200
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......  ..........  ......  ..........
                                                     ===========================================================
      TOTAL, PROCUREMENT OF AMMUNITION, NAVY &                                                                  
       MARINE CORPS.................................  ......     429,539  ......     480,739  ......     +51,200
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Program and project funding increases.--The Committee 
recommends the adjustment of funds for the following programs 
to reflect congressional priorities: to implement increases 
endorsed and/or requested by the service to address budget 
shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
General purpose bombs...........................................          22,904          34,904  ..............
GBU-24 enhanced guidance systems................................  ..............  ..............         +12,000
Extended range guided munitions [ERGM]..........................          27,452          37,452         +10,000
----------------------------------------------------------------------------------------------------------------

                           other adjustments

    The Committee recommends incorporating the following 
adjustment to the budget estimate, in accordance with the 
Senate authorization committee action:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Marine Corps ammunition:                                                                                        
    5.56 mm, all types..........................................          25,750          26,250            +500
    7.62 mm, all types..........................................             196             896            +700
    120 mm, all types...........................................          14,054          18,854          +4,800
    9 mm, all types.............................................           2,332           3,332          +1,000
    Grenades, all types.........................................           4,893           5,893          +1,000
    Rockets, all types..........................................          21,346          39,346         +18,000
    Fuze, all types.............................................          13,645          16,145          +2,500
----------------------------------------------------------------------------------------------------------------

                   Shipbuilding and Conversion, Navy

Appropriations, 1998....................................  $8,235,591,000
Budget estimate, 1999...................................   6,252,672,000
Committee recommendation................................   6,067,272,000

    The Committee recommends $6,067,272,000, a decrease of 
$185,400,000 from the budget request. This appropriation 
finances the construction; acquisition; and conversion of 
vessels, including armor and armament; plant equipment, 
appliances, and machine tools for production plants and 
facilities; procurement of long leadtime items; and detail 
design of vessels.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                       Senate   
                                                              Budget              Senate             compared to
                                                     Qty.    estimate    Qty.    allowance   Qty.      budget   
                                                                                                      estimate  
----------------------------------------------------------------------------------------------------------------
          SHIPBUILDING & CONVERSION, NAVY                                                                       
                                                                                                                
OTHER WARSHIPS:                                                                                                 
    CARRIER REPLACEMENT PROGRAM...................  ......  ..........  ......  ..........  ......  ............
    CARRIER REPLACEMENT PROGRAM (AP-CY)...........  ......     124,515  ......     124,515  ......  ............
    SSN-21........................................  ......  ..........  ......  ..........  ......  ............
    NEW SSN.......................................       1   1,498,165       1   1,498,165  ......  ............
    NEW SSN (AP-CY)...............................  ......     504,736  ......     504,736  ......  ............
    CVN REFUELING OVERHAULS.......................  ......  ..........  ......  ..........  ......  ............
    CVN REFUELING OVERHAULS (AP-CY)...............  ......     274,980  ......     274,980  ......  ............
    DDG-51........................................       3   2,672,078       3   2,672,078  ......  ............
    DDG-51 (AP-CY)................................  ......       7,396  ......       7,396  ......  ............
                                                   -------------------------------------------------------------
      TOTAL, OTHER WARSHIPS.......................  ......   5,081,870  ......   5,081,870  ......  ............
AMPHIBIOUS SHIPS:                                                                                               
    LPD-17........................................       1     638,780       1     638,780  ......  ............
    LPD-17 (AP-CY)................................  ......  ..........  ......  ..........  ......  ............
    LHD-8 (AP-CY).................................  ......  ..........  ......      50,000  ......       +50,000
                                                   -------------------------------------------------------------
      TOTAL, AMPHIBIOUS SHIPS.....................  ......     638,780  ......     688,780  ......       +50,000
                                                   =============================================================
AUXILIARIES, CRAFT, AND PRIOR-YEAR PROGRAM:                                                                     
    AUXILIARIES, CRAFT AND PRIOR YEAR PROGRAM COS:                                                              
        OCEANOGRAPHIC SHIPS.......................       1      60,341       1      60,341  ......  ............
        OCEANOGRAPHIC SHIPS (AP-CY)...............  ......  ..........  ......  ..........  ......  ............
        SERVICE CRAFT.............................  ......  ..........  ......  ..........  ......  ............
        STRATEGIC SEALIFT.........................       1     251,400       1  ..........  ......      -251,400
        LCAC LANDING CRAFT........................  ......  ..........  ......      16,000  ......       +16,000
        OUTFITTING................................  ......      95,680  ......      95,680  ......  ............
        POST DELIVERY.............................  ......     123,277  ......     123,277  ......  ............
        FIRST DESTINATION TRANSPORTATION..........  ......       1,324  ......       1,324  ......  ............
                                                   -------------------------------------------------------------
          TOTAL, AUXILIARIES, CRAFT, AND PRIOR-                                                                 
           YEAR PROGRAM...........................  ......     532,022  ......     296,622  ......      -235,400
ECONOMIC ASSUMPTIONS..............................  ......  ..........  ......  ..........  ......  ............
                                                   =============================================================
      TOTAL, SHIPBUILDING & CONVERSION, NAVY......  ......   6,252,672  ......   6,067,272  ......      -185,400
----------------------------------------------------------------------------------------------------------------

                           other adjustments

    The Committee recommends incorporating the following 
adjustments to the budget estimate, in accordance with the 
Senate authorization committee action:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
LHD-8 (AP)......................................................  ..............          50,000         +50,000
Strategic sealift...............................................         251,400  ..............        -251,400
LCAC landing craft..............................................  ..............          16,000         +16,000
----------------------------------------------------------------------------------------------------------------

                        Other Procurement, Navy

Appropriations, 1998....................................  $3,144,205,000
Budget estimate, 1999...................................   3,937,737,000
Committee recommendation................................   3,886,475,000

    The Committee recommends an appropriation of $3,886,475,000 
for the Navy's fiscal year 1999 ``Other procurement'' account, 
a decrease of $51,262,000 from the budget request.
    This appropriation finances the procurement of major 
equipment and weapons other than ships, aircraft, missiles, 
torpedoes, and guns. Equipment ranges from the latest 
electronic sensors for updating of naval forces to trucks, 
training equipment, and spare parts.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                               Budget              Senate              compared 
                                                      Qty.    estimate    Qty.    allowance    Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
              OTHER PROCUREMENT, NAVY                                                                           
                                                                                                                
SHIPS SUPPORT EQUIPMENT:                                                                                        
    SHIP PROPULSION EQUIPMENT:                                                                                  
        LM-2500 GAS TURBINE........................  ......       8,700  ......       8,700  .......  ..........
        ALLISON 501K GAS TURBINE...................  ......       6,737  ......       6,737  .......  ..........
        STEAM PROPULSION IMPROVEMENT...............  ......         617  ......         617  .......  ..........
        OTHER PROPULSION EQUIPMENT.................  ......      10,336  ......      10,336  .......  ..........
    GENERATORS: OTHER GENERATORS...................  ......       9,637  ......       8,437  .......      -1,200
    PUMPS: OTHER PUMPS.............................  ......       1,017  ......       1,017  .......  ..........
    PROPELLERS:                                                                                                 
        SUBMARINE PROPELLERS.......................  ......       7,937  ......       7,937  .......  ..........
        OTHER PROPELLERS AND SHAFTS................  ......       2,460  ......       2,460  .......  ..........
    NAVIGATION EQUIPMENT: OTHER NAVIGATION                                                                      
     EQUIPMENT.....................................  ......      45,259  ......      57,259  .......     +12,000
    UNDERWAY REPLENISHMENT EQUIPMENT: UNDERWAY                                                                  
     REPLENISHMENT EQUIPMENT.......................  ......       7,658  ......       7,658  .......  ..........
    PERISCOPES: SUB PERISCOPES AND IMAGING EQUIP...  ......      31,864  ......      31,864  .......  ..........
    OTHER SHIPBOARD EQUIPMENT:                                                                                  
        FIREFIGHTING EQUIPMENT.....................  ......      10,067  ......      10,067  .......  ..........
        COMMAND AND CONTROL SWITCHBOARD............  ......       9,787  ......       9,787  .......  ..........
        POLLUTION CONTROL EQUIPMENT................  ......     149,669  ......     123,669  .......     -26,000
        SUBMARINE SILENCING EQUIPMENT..............  ......       3,456  ......       3,456  .......  ..........
        SUBMARINE BATTERIES........................  ......       8,651  ......       8,651  .......  ..........
        SSN21 CLASS SUPPORT EQUIPMENT..............  ......      15,475  ......      15,475  .......  ..........
        STRATEGIC PLATFORM SUPPORT EQUIP...........  ......      10,345  ......      10,345  .......  ..........
        DSSP EQUIPMENT.............................  ......      10,470  ......      10,470  .......  ..........
        MINESWEEPING EQUIPMENT.....................  ......         394  ......         394  .......  ..........
        HM&E ITEMS UNDER $2 MILLION................  ......      58,121  ......      58,121  .......  ..........
        SURFACE IMA................................  ......         661  ......         661  .......  ..........
        RADIOLOGICAL CONTROLS......................  ......  ..........  ......  ..........  .......  ..........
    MINI/MICROMINI ELECTRONIC REPAIR...............  ......         518  ......         518  .......  ..........
    REACTOR PLANT EQUIPMENT:                                                                                    
        REACTOR POWER UNITS........................  ......     227,338  ......     227,338  .......  ..........
        REACTOR COMPONENTS.........................  ......     211,382  ......     211,382  .......  ..........
    OCEAN ENGINEERING:                                                                                          
        DIVING AND SALVAGE EQUIPMENT...............  ......       5,688  ......       5,688  .......  ..........
        EOD UNDERWATER EQUIPMENT...................  ......       8,174  ......       8,174  .......  ..........
    SMALL BOATS: STANDARD BOATS....................  ......       1,389  ......       1,389  .......  ..........
    TRAINING EQUIPMENT: OTHER SHIPS TRAINING                                                                    
     EQUIPMENT.....................................  ......       1,842  ......       1,842  .......  ..........
    PRODUCTION FACILITIES EQUIPMENT:                                                                            
        PRODUCTION SUPPORT FACILITIES..............  ......  ..........  ......  ..........  .......  ..........
        OPERATING FORCES IPE.......................  ......         673  ......         673  .......  ..........
    OTHER SHIP SUPPORT: NUCLEAR ALTERATIONS........  ......      96,752  ......      96,752  .......  ..........
                                                    ------------------------------------------------------------
      TOTAL, SHIPS SUPPORT EQUIPMENT...............  ......     963,074  ......     947,874  .......     -15,200
                                                    ============================================================
COMMUNICATIONS AND ELECTRONICS EQUIPMENT:                                                                       
    SHIP RADARS:                                                                                                
        AN/SPS-40..................................  ......          23  ......          23  .......  ..........
        AN/SPS-48..................................  ......  ..........  ......  ..........  .......  ..........
        AN/SPS-49..................................  ......       1,036  ......       1,036  .......  ..........
        MK-23 TARGET ACQUISITION SYSTEM............  ......           1  ......           1  .......  ..........
        RADAR SUPPORT..............................  ......       1,260  ......      10,260  .......      +9,000
        TISS.......................................  ......      11,756  ......      11,756  .......  ..........
    SHIP SONARS:                                                                                                
        SURFACE SONAR SUPPORT EQUIPMENT............  ......          15  ......          15  .......  ..........
        AN/SQQ-89 SURF ASW COMBAT SYSTEM...........  ......      27,432  ......      27,432  .......  ..........
        SSN ACOUSTICS..............................  ......     133,535  ......     148,535  .......     +15,000
        SURFACE SONAR WINDOWS AND DOME.............  ......           1  ......           1  .......  ..........
        SONAR SUPPORT EQUIPMENT....................  ......       8,915  ......       8,915  .......  ..........
        SONAR SWITCHES AND TRANSDUCERS.............  ......      12,785  ......      12,785  .......  ..........
    ASW ELECTRONIC EQUIPMENT:                                                                                   
        SUBMARINE ACOUSTIC WARFARE SYSTEM..........  ......       7,326  ......       7,326  .......  ..........
        SSTD.......................................  ......         836  ......         836  .......  ..........
        ACOUSTIC COMMUNICATIONS....................  ......         401  ......         401  .......  ..........
        FIXED SURVEILLANCE SYSTEM..................  ......       9,553  ......       9,553  .......  ..........
        SURTASS....................................  ......      12,712  ......      12,712  .......  ..........
        ASW OPERATIONS CENTER......................  ......       2,658  ......       2,658  .......  ..........
        CARRIER ASW MODULE.........................  ......         443  ......         443  .......  ..........
    ELECTRONIC WARFARE EQUIPMENT:                                                                               
        AN/SLQ-32..................................  ......       1,469  ......       1,469  .......  ..........
        AN/WLR-1...................................  ......       1,809  ......       1,809  .......  ..........
        INFORMATION WARFARE SYSTEMS................  ......       4,312  ......       4,312  .......  ..........
        EW SUPPORT EQUIPMENT.......................  ......  ..........  ......  ..........  .......  ..........
        C-3 COUNTERMEASURES........................  ......       6,080  ......       6,080  .......  ..........
    RECONNAISSANCE EQUIPMENT:                                                                                   
        SHIPBOARD CRYPTOLOGIC SYSTEMS..............  ......      40,238  ......      40,238  .......  ..........
        COMBAT DF..................................  ......  ..........  ......  ..........  .......  ..........
        OUTBOARD...................................  ......  ..........  ......  ..........  .......  ..........
        BATTLE GROUP PASSIVE HORIZON EXTEN.........  ......      73,542  ......      65,328  .......      -8,214
    SUBMARINE SURVEILLANCE EQUIPMENT:                                                                           
        AN/WLQ-4...................................  ......       2,858  ......       2,858  .......  ..........
        SUBMARINE SUPPORT EQUIPMENT PROG...........  ......       3,936  ......       3,936  .......  ..........
    OTHER SHIP ELECTRONIC EQUIPMENT:                                                                            
        NAVY TACTICAL DATA SYSTEM..................  ......          34  ......          34  .......  ..........
        COOPERATIVE ENGAGEMENT CAPABILITY..........  ......      47,332  ......      19,432  .......     -27,900
        JMCIS AFLOAT...............................  ......      38,324  ......      38,324  .......  ..........
        NAVAL TACTICAL COMMAND SUPPORT SYSTEM                                                                   
         (NTCSS)...................................  ......      73,333  ......      73,333  .......  ..........
        ATDLS......................................  ......      33,021  ......      33,021  .......  ..........
        MINESWEEPING SYSTEM REPLACEMENT............  ......      32,934  ......      17,039  .......     -15,895
        SHALLOW WATER MCM..........................  ......       8,913  ......       8,913  .......  ..........
        NAVSTAR GPS RECEIVERS (SPACE)..............  ......       9,542  ......       9,542  .......  ..........
        ARMED FORCES RADIO AND TV..................  ......      16,069  ......      16,069  .......  ..........
        STRATEGIC PLATFORM SUPPORT EQUIP...........  ......      12,687  ......      12,687  .......  ..........
    TRAINING EQUIPMENT:                                                                                         
        OTHER SPAWAR TRAINING EQUIPMENT............  ......       1,040  ......       1,040  .......  ..........
        OTHER TRAINING EQUIPMENT...................  ......      29,424  ......      29,424  .......  ..........
    AVIATION ELECTRONIC EQUIPMENT:                                                                              
        MATCALS....................................  ......      10,123  ......      10,123  .......  ..........
        SHIPBOARD AIR TRAFFIC CONTROL..............  ......       8,588  ......       8,588  .......  ..........
        AUTOMATIC CARRIER LANDING SYSTEM...........  ......      10,095  ......      10,095  .......  ..........
        NATIONAL AIR SPACE SYSTEM..................  ......      28,201  ......      28,201  .......  ..........
        AIR STATION SUPPORT EQUIPMENT..............  ......       6,776  ......       6,776  .......  ..........
        MICROWAVE LANDING SYSTEM...................  ......       5,249  ......       5,249  .......  ..........
        FACSFAC....................................  ......       4,633  ......       4,633  .......  ..........
        ID SYSTEMS.................................  ......      15,330  ......      15,330  .......  ..........
        SURFACE IDENTIFICATION SYSTEMS.............  ......       5,321  ......       5,321  .......  ..........
        TAC A/C MISSION PLANNING SYS(TAMPS)........  ......      23,666  ......      23,666  .......  ..........
    OTHER SHORE ELECTRONIC EQUIPMENT:                                                                           
        JMCIS ASHORE...............................  ......       4,517  ......       4,517  .......  ..........
        JMCIS OED..................................  ......         343  ......         343  .......  ..........
        TADIX-B....................................  ......      12,377  ......      12,377  .......  ..........
        JMCIS TACTICAL/MOBILE......................  ......       3,982  ......       3,982  .......  ..........
        RADIAC.....................................  ......       4,035  ......       4,035  .......  ..........
        GPETE......................................  ......       9,659  ......       9,659  .......  ..........
        INTEG COMBAT SYSTEM TEST FACILITY..........  ......       4,482  ......       6,482  .......      +2,000
        CALIBRATION STANDARDS......................  ......       1,871  ......       1,871  .......  ..........
        EMI CONTROL INSTRUMENTATION................  ......       7,536  ......       7,536  .......  ..........
        SHORE ELEC ITEMS UNDER $2 MILLION..........  ......       2,559  ......       2,559  .......  ..........
    SHIPBOARD COMMUNICATIONS:                                                                                   
        SHIPBOARD TACTICAL COMMUNICATIONS..........  ......      34,397  ......      38,397  .......      +4,000
        PORTABLE RADIOS............................  ......      10,913  ......      10,913  .......  ..........
        SINCGARS...................................  ......      27,888  ......      27,888  .......  ..........
        SHIP COMMUNICATIONS AUTOMATION.............  ......      90,638  ......      90,638  .......  ..........
        SHIP COMM ITEMS UNDER $2 MILLION...........  ......      24,220  ......      24,220  .......  ..........
    SUBMARINE COMMUNICATIONS:                                                                                   
        SHORE LF/VLF COMMUNICATIONS................  ......      13,028  ......      13,028  .......  ..........
        SUBMARINE COMMUNICATION EQUIPMENT..........  ......      64,583  ......      50,283  .......     -14,300
        ADVANCED VLF RECEIVER......................  ......      17,171  ......      17,171  .......  ..........
    SATELLITE COMMUNICATIONS:                                                                                   
        SATCOM SHIP TERMINALS (SPACE)..............  ......     145,193  ......     145,193  .......  ..........
        SATCOM SHORE TERMINALS (SPACE).............  ......      71,077  ......      71,077  .......  ..........
    SHORE COMMUNICATIONS:                                                                                       
        JCS COMMUNICATIONS EQUIPMENT...............  ......       3,363  ......       3,363  .......  ..........
        NSIPS......................................  ......       7,707  ......       7,707  .......  ..........
        JEDMICS....................................  ......  ..........  ......      10,000  .......     +10,000
        GCCS EQUIPMENT.............................  ......       2,944  ......       2,944  .......  ..........
        NAVAL SHORE COMMUNICATIONS.................  ......     113,546  ......     113,546  .......  ..........
    CRYPTOGRAPHIC EQUIPMENT: INFO SYSTEMS SECURITY                                                              
     PROGRAM (ISSP)................................  ......      45,990  ......      45,990  .......  ..........
    CRYPTOLOGIC EQUIPMENT: CRYPTOLOGIC                                                                          
     COMMUNICATIONS EQUIP..........................  ......      21,216  ......      21,216  .......  ..........
                                                    ------------------------------------------------------------
        TOTAL, COMMUNICATIONS AND ELECTRONICS                                                                   
         EQUIPMENT.................................  ......   1,530,802  ......   1,504,493  .......     -26,309
                                                    ============================================================
AVIATION SUPPORT EQUIPMENT:                                                                                     
    SONOBUOYS:                                                                                                  
        AN/SSQ-36 (BT).............................  ......       1,360  ......       1,360  .......  ..........
        AN/SSQ-53 (DIFAR)..........................  ......      37,257  ......      37,257  .......  ..........
        AN/SSQ-57 (SPECIAL PURPOSE)................  ......       2,435  ......       2,435  .......  ..........
        AN/SSQ-62 (DICASS).........................  ......      20,698  ......      20,698  .......  ..........
        AN/SSQ-101 (ADAR)..........................  ......      16,550  ......      16,550  .......  ..........
        SIGNAL, UNDERWATER SOUND (SUS).............  ......       1,302  ......       1,302  .......  ..........
    AIRCRAFT SUPPORT EQUIPMENT:                                                                                 
        WEAPONS RANGE SUPPORT EQUIPMENT............  ......       8,064  ......      23,064  .......     +15,000
        EXPEDITIONARY AIRFIELDS....................  ......       5,019  ......       5,019  .......  ..........
        AIRCRAFT REARMING EQUIPMENT................  ......      12,912  ......      12,912  .......  ..........
        AIRCRAFT LAUNCH & RECOVERY EQUIP-  MENT....  ......      39,749  ......      39,749  .......  ..........
        METEOROLOGICAL EQUIPMENT...................  ......      32,892  ......      32,892  .......  ..........
        OTHER PHOTOGRAPHIC EQUIPMENT...............  ......         623  ......         623  .......  ..........
        AVIATION LIFE SUPPORT......................  ......      22,277  ......      22,277  .......  ..........
        AIRBORNE MINE COUNTERMEASURES..............  ......      39,406  ......      39,406  .......  ..........
        LAMPS MK III SHIPBOARD EQUIPMENT...........  ......  ..........  ......  ..........  .......  ..........
        REWSON PHOTOGRAPHIC EQUIPMENT..............  ......         855  ......         855  .......  ..........
        STOCK SURVEILLANCE EQUIPMENT...............  ......  ..........  ......  ..........  .......  ..........
        OTHER AVIATION SUPPORT EQUIPMENT...........  ......       4,264  ......       4,264  .......  ..........
                                                    ------------------------------------------------------------
          TOTAL, AVIATION SUPPORT EQUIPMENT........  ......     245,663  ......     260,663  .......     +15,000
                                                    ============================================================
ORDNANCE SUPPORT EQUIPMENT:                                                                                     
    SHIP GUN SYSTEM EQUIPMENT: GUN FIRE CONTROL                                                                 
     EQUIPMENT.....................................  ......      20,203  ......      20,203  .......  ..........
    SHIP MISSILE SYSTEMS EQUIPMENT:                                                                             
        MK-92 FIRE CONTROL SYSTEM..................  ......         961  ......         961  .......  ..........
        HARPOON SUPPORT EQUIPMENT..................  ......  ..........  ......  ..........  .......  ..........
        TARTAR SUPPORT EQUIPMENT...................  ......           1  ......           1  .......  ..........
        POINT DEFENSE SUPPORT EQUIPMENT............  ......          38  ......          38  .......  ..........
        ENGAGEMENT SYSTEMS SUPPORT.................  ......         307  ......         307  .......  ..........
        NATO SEASPARROW............................  ......       5,156  ......       5,156  .......  ..........
        RAM GMLS...................................  ......      59,760  ......      59,760  .......  ..........
        SHIP SELF DEFENSE SYSTEM...................  ......      22,944  ......      22,944  .......  ..........
        AEGIS SUPPORT EQUIPMENT....................  ......      83,169  ......      95,169  .......     +12,000
        SURFACE TOMAHAWK SUPPORT EQUIP-  MENT......  ......      90,209  ......      90,209  .......  ..........
        SUBMARINE TOMAHAWK SUPPORT EQUIP...........  ......       3,961  ......       3,961  .......  ..........
        VERTICAL LAUNCH SYSTEMS....................  ......       7,791  ......       7,791  .......  ..........
    FBM SUPPORT EQUIPMENT:                                                                                      
        STRATEGIC PLATFORM SUPPORT EQUIP...........  ......       2,972  ......       2,972  .......  ..........
        STRATEGIC MISSILE SYSTEMS EQUIP............  ......     283,612  ......     283,612  .......  ..........
        ANTI-SHIP MISSILE DECOY SYSTEM.............  ......      21,504  ......      22,504  .......      +1,000
    ASW SUPPORT EQUIPMENT:                                                                                      
        SSN COMBAT CONTROL SYSTEMS.................  ......      17,460  ......      17,460  .......  ..........
        SUBMARINE ASW SUPPORT EQUIPMENT............  ......       3,740  ......       3,740  .......  ..........
        SURFACE ASW SUPPORT EQUIPMENT..............  ......       4,967  ......       4,967  .......  ..........
        ASW RANGE SUPPORT EQUIPMENT................  ......       4,562  ......       4,562  .......  ..........
    OTHER ORDNANCE SUPPORT EQUIPMENT:                                                                           
        EXPLOSIVE ORDNANCE DISPOSAL EQUIP..........  ......       7,274  ......       7,274  .......  ..........
        UNMANNED SEABORNE TARGET...................  ......       1,954  ......       1,954  .......  ..........
        INDUSTRIAL FACILITIES (CALIBRATION                                                                      
         EQUIPMENT)................................  ......       1,034  ......       1,034  .......  ..........
        STOCK SURVEILLANCE EQUIPMENT...............  ......       1,421  ......       1,421  .......  ..........
    OTHER EXPENDABLE ORDNANCE:                                                                                  
        FLEET MINE SUPPORT EQUIPMENT...............  ......          11  ......          11  .......  ..........
        SURFACE TRAINING DEVICE MODS...............  ......       5,891  ......       5,891  .......  ..........
        SUBMARINE TRAINING DEVICE MODS.............  ......      23,801  ......      23,801  .......  ..........
                                                    ------------------------------------------------------------
          TOTAL, ORDNANCE SUPPORT EQUIP-  MENT.....  ......     674,703  ......     687,703  .......     +13,000
                                                    ============================================================
    CIVIL ENGINEERING SUPPORT EQUIPMENT:                                                                        
        ARMORED SEDANS.............................  ......         255  ......  ..........  .......        -255
        PASSENGER CARRYING VEHICLES................     246       3,224  ......  ..........     -246      -3,224
        SPECIAL PURPOSE VEHICLES...................  ......       4,120  ......       4,120  .......  ..........
        CONSTRUCTION & MAINTENANCE EQUIP...........  ......       2,322  ......       2,322  .......  ..........
        FIRE FIGHTING EQUIPMENT....................  ......       1,034  ......       1,034  .......  ..........
        TACTICAL VEHICLES..........................  ......       1,251  ......       1,251  .......  ..........
        AMPHIBIOUS EQUIPMENT.......................  ......      27,688  ......      27,688  .......  ..........
        COMBAT CONSTRUCTION SUPPORT EQUIP..........  ......       1,125  ......       1,125  .......  ..........
        MOBILE UTILITIES SUPPORT EQUIPMENT.........  ......         425  ......         425  .......  ..........
        COLLATERAL EQUIPMENT.......................  ......  ..........  ......  ..........  .......  ..........
        OCEAN CONSTRUCTION EQUIPMENT...............  ......         419  ......         419  .......  ..........
        POLLUTION CONTROL EQUIPMENT................  ......      28,039  ......      28,039  .......  ..........
        VEHICLE LEASING............................  ......  ..........  ......         806  .......        +806
                                                    ------------------------------------------------------------
          TOTAL, CIVIL ENGINEERING SUPPORT                                                                      
           EQUIPMENT...............................  ......      69,902  ......      67,229  .......      -2,673
    SUPPLY SUPPORT EQUIPMENT:                                                                                   
        FORKLIFT TRUCKS............................  ......  ..........  ......  ..........  .......  ..........
        MATERIALS HANDLING EQUIPMENT...............  ......       6,824  ......       6,824  .......  ..........
        OTHER MATERIALS HANDLING EQUIPMENT.........  ......  ..........  ......  ..........  .......  ..........
        OTHER SUPPLY SUPPORT EQUIPMENT.............  ......       1,951  ......       1,951  .......  ..........
        FIRST DESTINATION TRANSPORTATION...........  ......       4,419  ......       4,419  .......  ..........
        SPECIAL PURPOSE SUPPLY SYSTEMS.............  ......      95,711  ......      68,631  .......     -27,080
                                                    ------------------------------------------------------------
          TOTAL, SUPPLY SUPPORT EQUIPMENT..........  ......     108,905  ......      81,825  .......     -27,080
                                                    ============================================================
PERSONNEL AND COMMAND SUPPORT EQUIPMENT:                                                                        
    TRAINING DEVICES: TRAINING SUPPORT EQUIPMENT...  ......       2,174  ......       2,174  .......  ..........
    COMMAND SUPPORT EQUIPMENT:                                                                                  
        COMMAND SUPPORT EQUIPMENT..................  ......      17,916  ......      17,916  .......  ..........
        MEDICAL SUPPORT EQUIPMENT..................  ......       2,536  ......       2,536  .......  ..........
        INTELLIGENCE SUPPORT EQUIPMENT.............  ......      21,684  ......      21,684  .......  ..........
        OPERATING FORCES SUPPORT EQUIPMENT.........  ......       4,684  ......       4,684  .......  ..........
        ENVIRONMENTAL SUPPORT EQUIPMENT............  ......      16,666  ......      16,666  .......  ..........
        PHYSICAL SECURITY EQUIPMENT................  ......  ..........  ......  ..........  .......  ..........
                                                    ------------------------------------------------------------
          TOTAL, PERSONNEL AND COMMAND SUPPORT                                                                  
           EQUIPMENT...............................  ......      65,660  ......      65,660  .......  ..........
OTHER:                                                                                                          
    SPARES AND REPAIR PARTS........................  ......     279,028  ......     271,028  .......      -8,000
    ECONOMIC ASSUMPTIONS...........................  ......  ..........  ......  ..........  .......  ..........
                                                    ============================================================
      TOTAL, OTHER PROCUREMENT, NAVY...............  ......   3,937,737  ......   3,886,475  .......     -51,262
----------------------------------------------------------------------------------------------------------------

    Navy tactical data system.--The Committee understands that 
Navy fleet training ranges currently rely on an older version 
of the advanced combat direction system which cannot support 
the Cooperative Engagement Capability [CEC] Program and other 
technologies. Installation of the AN/UYQ-70 advanced display 
system, CEC, the ACDS Block Computer 1 Program, and adaptation 
of the range ACDS interface translator at the ranges would take 
full advantage of these systems and ensure that the ranges 
maintain current technology to support fleet customers. The 
Committee encourages the Navy to proceed with this program 
expeditiously.

                   Committee recommended adjustments

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are excess to firm 
program requirements based on delays in the release of prior-
year funds; late contract efforts; slow execution of prior-year 
funds; differences between the budget request and the actual 
program plans; or are lower priority relative to other 
programs.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Other generators................................................           9,637           8,437          -1,200
    Excess funds................................................  ..............          -1,200          -1,200
Pollution control equipment.....................................         149,669         123,669         -26,000
    Shore-based program.........................................  ..............         -15,000         -15,000
    Ship-based program..........................................  ..............         -11,000         -11,000
Battle group passive horizon exten..............................          73,542          65,328          -8,214
    Excess to requirements......................................  ..............          -8,214          -8,214
Cooperative engagement capability...............................          47,332          19,432         -27,900
    Defer procurement due to schedule delays....................  ..............         -27,900         -27,900
Minesweeping system replacement.................................          32,934          17,039         -15,895
    Remote minehunting system...................................  ..............         -15,895         -15,895
Submarine communication equipment...............................          64,583          50,283         -14,300
    Submarine high data rate....................................  ..............  ..............         -14,300
Armored sedans..................................................             255  ..............            -255
    Excess to requirements......................................  ..............            -255            -255
Passenger carrying vehicles.....................................           3,224  ..............          -3,224
    Convert to leasing..........................................  ..............          -3,224          -3,224
Spares and repair parts.........................................         279,028         271,028          -8,000
    Excess to requirements......................................  ..............          -8,000          -8,000
----------------------------------------------------------------------------------------------------------------

    Program and project funding increases.--The Committee 
recommends the addition of funds for the following programs to 
reflect congressional priorities and to implement increases 
endorsed and/ or requested by the Navy to address budget 
shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Shipboard tactical communications...............................          34,397          38,397          +4,000
    Scaled integrated voice communications......................  ..............           4,000          +4,000
Weapons range support equipment.................................           8,064          23,064         +15,000
    Mobile remote emitter simulator for 2d location.............  ..............           5,000          +5,000
    PMRF upgrades...............................................  ..............          10,000         +10,000
Vehicle leasing.................................................  ..............             806            +806
    Conversion to leasing.......................................  ..............             806            +806
----------------------------------------------------------------------------------------------------------------

                           Other adjustments

    Authorization adjustments.--The Committee recommends 
incorporating the following adjustments to the budget estimate, 
in accordance with the Senate authorization committee action:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Other navigation equipment......................................          45,259          57,259         +12,000
    AN/WSN-7 inertial navigation system.........................  ..............          12,000         +12,000
Radar support...................................................           1,260          10,260          +9,000
    AN/BPS-15H surface search radar.............................  ..............           9,000          +9,000
SSN acoustics...................................................         133,535         148,535         +15,000
    Acoustic rapid commercial-off-the-shelf insertion [A-RCI]...  ..............          15,000         +15,000
INTEG combat system test facility...............................           4,482           6,482          +2,000
    Ship warfare systems center.................................  ..............           2,000          +2,000
JEDMICS.........................................................  ..............          10,000         +10,000
    JEDMICS computer security system............................  ..............          10,000         +10,000
Aegis support equipment.........................................          83,169          95,169         +12,000
    Smart ship equipment........................................  ..............          12,000         +12,000
Antiship missile decoy system...................................          21,504          22,504          +1,000
    NULKA assembly qulaification................................  ..............           1,000          +1,000
Special purpose supply systems..................................          95,711          68,631         -27,080
    Program reduction...........................................  ..............         -27,080         -27,080
----------------------------------------------------------------------------------------------------------------

                       Procurement, Marine Corps

Appropriations, 1998....................................    $482,398,000
Budget estimate, 1999...................................     745,858,000
Committee recommendation................................     954,177,000

    The Committee recommends an appropriation of $954,177,000 
for the ``Procurement, Marine Corps'' account for fiscal year 
1999, an increase of $208,319,000 to the budget request.
    This appropriation provides the Marine Corps with funds for 
the procurement, delivery, and modification of missiles, 
armament, communication equipment, tracked combat and wheeled 
vehicles, and various support equipment.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                                Budget              Senate             compared 
                                                       Qty.    estimate    Qty.    allowance   Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
              PROCUREMENT, MARINE CORPS                                                                         
                                                                                                                
WEAPONS AND COMBAT VEHICLES:                                                                                    
    TRACKED COMBAT VEHICLES:                                                                                    
        AAV7A1 PIP..................................  ......      89,934  ......      89,934  ......  ..........
        LAV PIP.....................................  ......       1,384  ......       1,384  ......  ..........
        LIGHT ARMORED VEHICLE.......................  ......  ..........  ......  ..........  ......  ..........
        MODIFICATION KITS (TRKD VEH)................  ......       5,726  ......      25,326  ......     +19,600
        ITEMS UNDER $2M (TRKD VEH)..................  ......          97  ......          97  ......  ..........
    ARTILLERY AND OTHER WEAPONS:                                                                                
        MOD KITS (ARTILLERY)........................  ......       1,809  ......       4,309  ......      +2,500
        ITEMS UNDER $2M (ALL OTHER).................  ......         105  ......         105  ......  ..........
        MARINE ENHANCEMENT PROGRAM..................  ......       2,075  ......       2,075  ......  ..........
    WEAPONS: 155MM LIGHTWEIGHT TOWED HOWIT-  ZER....  ......      10,002    ,002  ..........  ......            
                                                     -----------------------------------------------------------
        TOTAL, WEAPONS AND COMBAT VEHICLES..........  ......     111,132  ......     133,232  ......     +22,100
                                                     ===========================================================
GUIDED MISSILES AND EQUIPMENT:                                                                                  
    GUIDED MISSILES:                                                                                            
        HAWK MOD....................................  ......         981  ......         981  ......  ..........
        JAVELIN.....................................     741      82,842     741      82,842  ......  ..........
        PEDESTAL MOUNTED STINGER (PMS) (MYP)........  ......         218  ......       5,218  ......      +5,000
    OTHER SUPPORT: MODIFICATION KITS................  ......  ..........  ......  ..........  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, GUIDED MISSILES AND EQUIPMENT..........  ......      84,041  ......      89,041  ......      +5,000
                                                     ===========================================================
COMMUNICATIONS AND ELECTRONICS EQUIPMENT:                                                                       
    REPAIR AND TEST EQUIPMENT:                                                                                  
        AUTO TEST EQUIP SYS.........................  ......      19,312  ......      34,312  ......     +15,000
        GENERAL PURPOSE ELECTRONIC TEST  EQUIP......  ......       9,240  ......       9,240  ......  ..........
    INTELL/COMM EQUIPMENT (NON-TEL):                                                                            
        AN/TPQ-36 FIRE FINDER RADAR UPGRADE.........  ......         155  ......         155  ......  ..........
        INTELLIGENCE SUPPORT EQUIPMENT..............  ......      10,363  ......      10,363  ......  ..........
        MOD KITS (INTEL)............................  ......       4,791  ......       7,891  ......      +3,100
        ITEMS LESS THAN $2M (INTELL)................  ......  ..........  ......  ..........  ......  ..........
    REPAIR AND TEST EQUIPMENT (NON-TEL): GENERAL                                                                
     PURPOSE MECHANICAL TMDE........................  ......       4,416  ......       4,416  ......  ..........
    OTHER COMM/ELEC EQUIPMENT (NON-TEL): NIGHT                                                                  
     VISION EQUIPMENT...............................  ......      11,563  ......      50,063  ......     +38,500
    OTHER SUPPORT (NON-TEL):                                                                                    
        COMMAND POST SYSTEMS........................  ......       7,134  ......       7,134  ......  ..........
        MANEUVER C\2\ SYSTEMS.......................  ......      19,307  ......      19,307  ......  ..........
        RADIO SYSTEMS...............................  ......      52,902  ......      52,902  ......  ..........
        COMM SWITCHING & CONTROL SYSTEMS............  ......      75,781  ......      75,781  ......  ..........
        COMM & ELEC INFRASTRUCTURE SUPPORT..........  ......      57,862  ......     131,962  ......     +74,100
        MOD KITS MAGTF C41..........................  ......      27,427  ......      27,427  ......  ..........
        ITEMS LESS THAN $2M MAGTF C41...............  ......       2,436  ......       2,436  ......  ..........
        MODIFICATION KITS (OTHER)...................  ......  ..........  ......  ..........  ......  ..........
        ITEMS LESS THAN $2M (OTHER).................  ......       4,332  ......       4,332  ......  ..........
        AIR OPERATIONS C\2\ SYSTEMS.................  ......      11,505  ......      11,505  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, COMMUNICATIONS AND ELECTRONICS                                                                 
           EQUIPMENT................................  ......     318,526  ......     449,226  ......    +130,700
                                                     ===========================================================
SUPPORT VEHICLES:                                                                                               
    ADMINISTRATIVE VEHICLES:                                                                                    
        COMMERCIAL PASSENGER VEHICLES...............      37       1,248      37          53     -37      -1,195
        COMMERCIAL CARGO VEHICLES...................  ......       8,821  ......       7,624  ......      -1,197
        VEHICLE LEASES..............................  ......  ..........  ......         611  ......        +611
    TACTICAL VEHICLES:                                                                                          
        5/4T TRUCK HMMWV (MYP)......................  ......       1,745  ......       1,745  ......  ..........
        MEDIUM TACTICAL VEHICLE REPLACEMENT.........     240      83,717     240      83,717  ......  ..........
        LT TACTICAL VEHICLE REMANUFACTURE (LTRV)....  ......      39,263  ......      66,263  ......     +27,000
        LOGISTICS VEHICLE SYSTEM REP................  ......       3,106  ......       3,106  ......  ..........
    OTHER SUPPORT: ITEMS LESS THAN $2 MIL...........  ......       3,594  ......       3,594  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, SUPPORT VEHICLES.......................  ......     141,494  ......     166,713  ......     +25,219
                                                     ===========================================================
ENGINEER AND OTHER EQUIPMENT:                                                                                   
    ENVIRONMENTAL CONTROL EQUIP ASSORT..............  ......       3,013  ......       3,013  ......  ..........
    BULK LIQUID EQUIPMENT...........................  ......  ..........  ......  ..........  ......  ..........
    ADVANCED DEMOLITION KITS........................  ......       2,949  ......       2,949  ......  ..........
    POWER EQUIPMENT ASSORTED........................  ......       5,097  ......      14,597  ......      +9,500
    SHOP EQ CONTACT MAINTENANCE (SECM)..............  ......       5,972  ......      11,372  ......      +5,400
MATERIALS HANDLING EQUIPMENT:                                                                                   
    COMMAND SUPPORT EQUIPMENT.......................  ......         514  ......         514  ......  ..........
    AMPHIBIOUS RAID EQUIPMENT.......................  ......       3,723  ......       3,723  ......  ..........
    PHYSICAL SECURITY EQUIPMENT.....................  ......       1,856  ......       1,856  ......  ..........
    GARRISON MOBILE ENGR EQUIP......................  ......       5,509  ......       5,509  ......  ..........
    WAREHOUSE MODERNIZATION.........................  ......       1,495  ......       1,495  ......  ..........
    MATERIAL HANDLING EQUIP.........................  ......       6,453  ......      16,853  ......     +10,400
    FIRST DESTINATION TRANSPORTATION................  ......       1,864  ......       1,864  ......  ..........
GENERAL PROPERTY:                                                                                               
    FIELD MEDICAL EQUIPMENT.........................  ......       2,184  ......       2,184  ......  ..........
    TRAINING DEVICES................................  ......       3,305  ......       3,305  ......  ..........
    CONTAINER FAMILY................................  ......       7,074  ......       7,074  ......  ..........
OTHER SUPPORT:                                                                                                  
    MODIFICATION KITS...............................  ......       1,228  ......       1,228  ......  ..........
    ITEMS LESS THAN $2 MIL..........................  ......       1,853  ......       1,853  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, ENGINEER AND OTHER EQUIPMENT...........  ......      54,089  ......      79,389  ......     +25,300
SPARES AND REPAIR PARTS.............................  ......      36,576  ......      36,576  ......  ..........
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......  ..........  ......  ..........
                                                     ===========================================================
      TOTAL, PROCUREMENT, MARINE CORPS..............  ......     745,858  ......     954,177  ......    +208,319
----------------------------------------------------------------------------------------------------------------

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are excess to firm 
program requirements based on delays in the release of prior-
year funds; late contract efforts; slow execution of prior-year 
funds; differences between the budget request and the actual 
program plans; or are lower priority relative to other 
programs.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Commercial passenger vehicles...................................           1,248              53          -1,195
    Convert to leasing..........................................  ..............          -1,248          -1,248
    Sedan, law enforcement (procurement)........................  ..............             +53             +53
Commercial cargo vehicles.......................................           8,821           7,624          -1,197
    Convert to leasing..........................................  ..............          -1,197          -1,197
----------------------------------------------------------------------------------------------------------------

    Program and project funding increases.--The Committee 
recommends the addition of funds for the following programs to 
reflect congressional priorities; to implement increases 
endorsed and/or requested by the Marine Corps to address budget 
shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Mod kits (artillery)............................................           1,809           4,309          +2,500
    M4 carbines.................................................  ..............           2,500          +2,500
Auto test equipment system......................................          19,312          34,312         +15,000
    Direct support electrical system test sets [DSESTS].........  ..............          15,000         +15,000
Mod kits (intel)................................................           4,791           7,891          +3,100
    Improved remotely monitored battlefield sensors (IREMBOSS)..  ..............           3,100          +3,100
Vehicle leasing.................................................  ..............             611            +611
    Conversion to leasing.......................................  ..............             611            +611
----------------------------------------------------------------------------------------------------------------

    Auto test equipment system.--The Committee recommends an 
increase of $15,000,000 only to procure light armored vehicle 
[LAV] TOW2 direct support electrical system test sets [DSESTS].

                           Other adjustments

    The Committee recommends incorporating the following 
adjustments to the budget estimate, in accordance with the 
Senate authorization committee action:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Modification kits (tracked vehicles)............................           5,726          25,326         +19,600
    Modification kits for tracked vehicles......................  ..............           4,600          +4,600
    Joint task force enhanced core communications command System                                                
     [JECCS] \1\................................................  ..............          15,000         +15,000
Pedestal mounted Stinger (PMS) (MYP)............................             218           5,218          +5,000
    Avenger FLIR upgrades.......................................  ..............           5,000          +5,000
Night vision equipment..........................................          11,563          50,063         +38,500
    Borelights..................................................  ..............           1,000          +1,000
    Medium power laser illuminator [MPLI].......................  ..............           3,800          +3,800
    Laser aiming modules........................................  ..............           5,000          +5,000
    Gen III tubes...............................................  ..............           6,100          +6,100
    AN/AVS-6 night vision goggle OMNI IV retrofit \2\...........  ..............          22,600         +22,600
Communication and electric infrastructure support...............          57,862         131,962         +74,100
    Base telecommunications/computers...........................  ..............          74,100         +74,100
Light tactical vehicle remanufacture [LTRV].....................          39,263          66,263         +27,000
    Program increase............................................  ..............          27,000         +27,000
Power equipment assorted........................................           5,097          14,597          +9,500
    Power equipment.............................................  ..............           9,500          +9,500
Shop equipment contact maintenance [SECM].......................           5,972          11,372          +5,400
    Shop equipment contract maintenance.........................  ..............           5,400          +5,400
Material handling equipment.....................................           6,453          16,853         +10,400
    Material handling equipment.................................  ..............          10,400         +10,400
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project increases'' heading of 
  this report section.                                                                                          
\2\ Increase authorized under other procurement, Navy by SASC.                                                  

                    Aircraft Procurement, Air Force

Appropriations, 1998....................................  $6,480,983,000
Budget estimate, 1999...................................   7,756,475,000
Committee recommendation................................   7,967,023,000

    The Committee recommends $7,967,023,000, an increase of 
$210,548,000 to the budget request. This appropriation finances 
the construction, procurement, modernization, and modification 
of aircraft and equipment, including armor and armament, 
specialized ground-handling equipment, and flight training 
simulators, spare parts, and accessories; specialized 
equipment; and expansion of public and private plants, 
Government-owned equipment, and installation.

                     COMMITTEE RECOMMENDED PROGRAM

    The Committee recommendation increases funds to procure 
additional Air Force trainers, support aircraft, and weather 
reconnaissance aircraft while also accelerating fighter engine 
modifications and 135-type fleet reenginings. The Committee's 
adjustments are reflected in the following tables and discussed 
in the text which follows.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                               Budget              Senate            compared to
                                                      Qty.    estimate    Qty.    allowance   Qty.      budget  
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
          AIRCRAFT PROCUREMENT, AIR FORCE                                                                       
                                                                                                                
COMBAT AIRCRAFT:                                                                                                
    STRATEGIC OFFENSIVE:                                                                                        
        B-1B (MYP).................................  ......  ..........  ......  ..........  ......  ...........
        B-2A (MYP).................................  ......  ..........  ......  ..........  ......  ...........
    TACTICAL FORCES:                                                                                            
        ADVANCED TACTICAL FIGHTER..................       2     595,094       2     595,094  ......  ...........
        ADVANCED TACTICAL FIGHTER (AP-CY)..........  ......     190,210  ......     190,210  ......  ...........
        F-15A......................................  ......  ..........  ......  ..........  ......  ...........
        F-15A (AP-CY)..............................  ......  ..........  ......  ..........  ......  ...........
        F-16 C/D (MYP).............................  ......  ..........  ......  ..........  ......  ...........
                                                    ------------------------------------------------------------
          TOTAL, COMBAT AIRCRAFT...................  ......     785,304  ......     785,304  ......  ...........
                                                    ============================================================
AIRLIFT AIRCRAFT:                                                                                               
    TACTICAL AIRLIFT:                                                                                           
        C-17 (MYP).................................      13   2,596,992      13   2,596,992  ......  ...........
        C-17 (MYP) (AP-CY).........................  ......     303,500  ......     303,500  ......  ...........
        EC-130J....................................  ......  ..........  ......  ..........  ......  ...........
    OTHER AIRLIFT:                                                                                              
        C-130H.....................................  ......      11,176  ......      11,176  ......  ...........
        C-130J.....................................       1      63,782  ......      30,000      -1      -33,782
        WC-130.....................................  ......  ..........       1      75,400      +1      +75,400
                                                    ------------------------------------------------------------
          TOTAL, AIRLIFT AIRCRAFT..................  ......   2,975,450  ......   3,017,068  ......      +41,618
                                                    ============================================================
TRAINER AIRCRAFT: OPERATIONAL TRAINERS: JPATS......      19     107,086      22      97,186      +3       -9,900
OTHER AIRCRAFT:                                                                                                 
    HELICOPTERS: V-22 OSPREY.......................  ......      22,276  ......      22,276  ......  ...........
                                                    ============================================================
    MISSION SUPPORT AIRCRAFT:                                                                                   
        CIVIL AIR PATROL A/C.......................      27       2,619      27       2,619  ......  ...........
        SMALL VCX..................................  ......  ..........       2      79,600      +2      +79,600
        C-32A......................................       2     160,901       2     160,901  ......  ...........
        E-8C.......................................       2     463,051       2     463,051  ......  ...........
        E-8C (AP-CY)...............................  ......  ..........  ......  ..........  ......  ...........
        PREDATOR UAV...............................      15     114,492      15     114,492  ......  ...........
                                                    ------------------------------------------------------------
          TOTAL, OTHER AIRCRAFT....................  ......     763,339  ......     842,939  ......      +79,600
MODIFICATION OF INSERVICE AIRCRAFT:                                                                             
    STRATEGIC AIRCRAFT:                                                                                         
        B-2A.......................................  ......      15,681  ......      15,681  ......  ...........
        B-1B.......................................  ......      91,614  ......      58,514  ......      -33,100
        B-52.......................................  ......      38,308  ......      48,608  ......      +10,300
        F-117......................................  ......      25,654  ......      25,654  ......  ...........
    TACTICAL AIRCRAFT:                                                                                          
        A-10.......................................  ......      31,088  ......      31,088  ......  ...........
        F-15.......................................  ......     196,579  ......     236,579  ......      +40,000
        F-16.......................................  ......     229,319  ......     239,219  ......       +9,900
        EF-111.....................................  ......  ..........  ......  ..........  ......  ...........
        T/AT-37....................................  ......          90  ......          90  ......  ...........
    AIRLIFT AIRCRAFT:                                                                                           
        C-5........................................  ......      63,635  ......      63,635  ......  ...........
        C-9........................................  ......       9,462  ......       9,462  ......  ...........
        C-17A......................................  ......      45,704  ......      45,704  ......  ...........
        C-21.......................................  ......      59,938  ......      59,938  ......  ...........
        C-22.......................................  ......         180  ......         180  ......  ...........
        C-STOL.....................................  ......  ..........  ......  ..........  ......  ...........
        C-137......................................  ......  ..........  ......  ..........  ......  ...........
        C-141......................................  ......      33,412  ......      33,412  ......  ...........
    TRAINER AIRCRAFT:                                                                                           
        T-1........................................  ......       7,739  ......       7,739  ......  ...........
        T-3 (EFS) AIRCRAFT.........................  ......          95  ......          95  ......  ...........
        T-38.......................................  ......      53,570  ......      53,570  ......  ...........
        T-41 AIRCRAFT..............................  ......          95  ......          95  ......  ...........
        T-43.......................................  ......       2,233  ......       2,233  ......  ...........
    OTHER AIRCRAFT:                                                                                             
        KC-10A (ATCA)..............................  ......      43,710  ......      43,710  ......  ...........
        C-12.......................................  ......       3,820  ......       3,820  ......  ...........
        C-18.......................................  ......         354  ......         354  ......  ...........
        C-20 MODS..................................  ......       6,610  ......       6,610  ......  ...........
        VC-25A MOD.................................  ......       7,424  ......       7,424  ......  ...........
        C-130......................................  ......     119,592  ......     119,592  ......  ...........
        C-135......................................  ......     291,070  ......     381,070  ......      +90,000
        DARP.......................................  ......     139,242  ......      83,942  ......      -55,300
        E-3........................................  ......     114,181  ......     114,181  ......  ...........
        E-4........................................  ......      13,987  ......       9,317  ......       -4,670
        E-8........................................  ......      44,179  ......      50,179  ......       +6,000
        H-1........................................  ......       1,911  ......       1,911  ......  ...........
        H-60.......................................  ......      17,224  ......      17,224  ......  ...........
        OTHER AIRCRAFT.............................  ......      17,702  ......      17,702  ......  ...........
        PREDATOR MODS..............................  ......       3,469  ......       3,469  ......  ...........
    OTHER MODIFICATIONS:                                                                                        
        CLASSIFIED PROJECTS........................  ......       7,517  ......       7,517  ......  ...........
        PASSENGER SAFETY MODIFICATIONS.............  ......  ..........  ......      50,000  ......      +50,000
                                                    ------------------------------------------------------------
          TOTAL, MODIFICATION OF INSERVICE AIRCRAFT  ......   1,736,388  ......   1,849,518  ......     +113,130
                                                    ============================================================
AIRCRAFT SPARES AND REPAIR PARTS: SPARES AND REPAIR                                                             
 PARTS.............................................  ......     524,829  ......     551,829  ......      +27,000
                                                    ============================================================
AIRCRAFT SUPPORT EQUIPMENT AND FACILITIES:                                                                      
    COMMON SUPPORT EQUIPMENT.......................  ......     152,109  ......     152,109  ......  ...........
    POST PRODUCTION SUPPORT:                                                                                    
        A-10.......................................  ......      11,414  ......      11,414  ......  ...........
        B-2A.......................................  ......     189,869  ......     159,869  ......      -30,000
        C-5........................................  ......      28,502  ......      28,502  ......  ...........
        F-15 POST PRODUCTION SUPPORT...............  ......       7,851  ......       7,851  ......  ...........
        F-16 POST PRODUCTION SUPPORT...............  ......      27,289  ......      27,289  ......  ...........
    INDUSTRIAL PREPAREDNESS........................  ......      19,109  ......      19,109  ......  ...........
    WAR CONSUMABLES................................  ......      49,396  ......      49,396  ......  ...........
    MISC PRODUCTION CHARGES........................  ......     221,464  ......     210,564  ......      -10,900
    COMMON ECM EQUIPMENT...........................  ......       4,963  ......       4,963  ......  ...........
    DARP...........................................  ......     152,113  ......     152,113  ......  ...........
                                                    ------------------------------------------------------------
      TOTAL, AIRCRAFT SUPPORT EQUIPMENT AND                                                                     
       FACILITIES..................................  ......     864,079  ......     823,179  ......      -40,900
                                                    ============================================================
ECONOMIC ASSUMPTIONS...............................  ......  ..........  ......  ..........  ......  ...........
                                                    ============================================================
      TOTAL, AIRCRAFT PROCUREMENT, AIR FORCE.......  ......   7,756,475  ......   7,967,023  ......     +210,548
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are not supported 
by firm requirements or out-year procurement funds; are 
premature until related, preliminary efforts are completed, and 
the results evaluated; are lower priority relative to other 
projects; are duplicative of other DOD projects; are increasing 
without a firm justification; or can be deferred without 
adversely affecting program activities.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
JPATS...........................................................         107,086          97,186          -9,900
    Other Government cost growth................................  ..............          -4,000          -4,000
    Ground-based training system [GBTS] program delays..........  ..............         -15,000         -15,000
    Three additional aircraft \1\...............................  ..............           9,100          +9,100
B-1B............................................................          91,614          58,514         -33,100
    Towed decoy procurement.....................................  ..............         -33,100         -33,100
B-2A............................................................         189,869         159,869         -30,000
    Software investment.........................................  ..............         -20,000         -20,000
    Initial spares..............................................  ..............         -10,000         -10,000
Miscellaneous production charges................................         221,464         210,564         -10,900
    Global positioning system user equipment production testing.  ..............          -3,000          -3,000
    GPS undefined test hardware.................................  ..............          -2,700          -2,700
    Program reduction...........................................  ..............          -5,200          -5,200
----------------------------------------------------------------------------------------------------------------
\1\ Program adjustment recommended as described under the heading ``Authorization adjustments.''                

    Program and project funding increases.--The Committee 
recommends the addition of funds for the following projects and 
programs to reflect congressional priorities; to rectify 
shortfalls in the budget request for activities; to implement 
increases endorsed and/or requested by the Air Force to address 
budget shortfalls; and to effect funding transfers recommended 
by the Committee or the Air Force.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Small VCX.......................................................  ..............          79,600         +79,600
    Two CINC support aircraft...................................  ..............          79,600         +79,600
B-52............................................................          38,308          48,608         +10,300
    Modifications for 94 aircraft fleet.........................  ..............          10,300         +10,300
F-16............................................................         229,319         239,219          +9,900
    Digital terrain system [DTS]................................  ..............           5,900          +5,900
    600 gallon tanks............................................  ..............           4,000          +4,000
C-135...........................................................         291,070         381,070         +90,000
    Eight reengining modifications with leased en-  gines.......  ..............          90,000         +90,000
DARP............................................................         139,242          83,942         -55,300
    Theater airborne warning sensor [TAWS]......................  ..............           2,000          +2,000
    RC-135 reengining procurement reduction \1\.................  ..............         -57,300         -57,300
E-8.............................................................          44,179          50,179          +6,000
    Multiservice data link for JSTARS...........................  ..............           6,000          +6,000
Passenger safety modifications..................................  ..............          50,000         +50,000
    Aircraft safety modifications...............................  ..............          50,000         +50,000
Spares and repair parts.........................................         524,829         551,829         +27,000
    WC-130J modifications.......................................  ..............          27,000         +27,000
----------------------------------------------------------------------------------------------------------------
\1\ Program reduction based on transfer to the C-135 reengining lease initiative as descibed elsewhere in this  
  report.                                                                                                       

    Authorization adjustments.--The Committee recommends the 
following adjustments based on the recommendations reported in 
the Senate bill authorizing programs and activities of the 
Department of Defense [DOD] for fiscal year 1999:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
C-130J..........................................................          63,782          30,000         -33,782
    C-130J aircraft trainer.....................................  ..............          30,000         +30,000
    Active aircraft reduction \1\...............................  ..............         -63,782         -63,782
WC-130..........................................................  ..............          75,400         +75,400
    One WC-130J aircraft........................................  ..............          75,400         +75,400
F-15............................................................         196,579         236,579         +40,000
    F-15 ``E'' engine kits......................................  ..............          25,000         +25,000
    ALQ-135 band 1.5 low rate initial procurement...............  ..............          15,000         +15,000
----------------------------------------------------------------------------------------------------------------
\1\ Program reduction to transfer C-130 procurement funds to the ``National Guard and Reserve equipment''       
  account.                                                                                                      

    C-135.--The Committee has provided $90,000,000 to initiate 
a program for reengining 707-based aircraft with leased 
engines. The Committee understands that there are a number of 
commercial engines which could enhance the capability, improve 
the performance, and lower the maintenance costs of 707-based 
aircraft. The Committee also understands that the existing 
strong market for such commercial engines may permit DOD to 
lease these engines at favorable rates and with little or no 
lease termination liability. Accelerated reengining through 
leasing will allow DOD to realize substantial operations and 
maintenance cost savings on 707 platforms.
    The Committee directs that the $90,000,000 increase shall 
be available only to initiate a competitive program to modify 
135-series aircraft and install leased engines. The Committee 
believes that the funds provided may permit eight aircraft to 
be modified and reengined. The Committee directs that at least 
two of the modified aircraft be RC-135 Rivet Joints. The 
Committee has also recommended a reduction of $57,300,000 in 
the Defense Airborne Reconnaissance Program to shift the 
budgeted Rivet Joint reengining procurement into this new 
leasing program.
    Theater airborne warning sensor [TAWS].--The Committee 
recommendation provides $2,000,000 to complete testing and 
document the results of the TAWS demonstration effort. At the 
direction of the Congress, the Department of Defense 
reevaluated the need for airborne infrared detection and 
tracking of theater ballistic missiles. Based on this analysis, 
DOD concluded that the airborne warning and control system 
[AWACS] Eagle and Rivet Joint TAWS efforts should be brought to 
an orderly termination with the results transferred to the 
Airborne Laser [ABL] Program, a system which inherently 
provides this detection capability.
    The Committee endorses the Department of Defense conclusion 
on airborne infrared system requirements. Since DOD completed 
its assessment, development efforts have proceeded successfully 
on a new generation of ballistic missile warning sensors. Every 
Aegis ship can now detect and track theater ballistic missiles, 
providing a more accurate estimate of the launch point and 
impact point than TAWS. Furthermore, Aegis radar can track 
these missiles in all weather conditions, while infrared 
systems cannot. Indeed, at the recent Willow Dune ballistic 
missile launch exercise involving a variety of tracking 
sensors, TAWS was the only sensor not to detect the ballistic 
missile target. The space-based infrared system high component 
[SBIRS-High] will dramatically enhance our global ability to 
provide infrared surveillance of theater and strategic 
ballistic missile launches. Finally, the availability of 
upgraded Patriot advanced capability 3 [PAC-3] missile radars 
and THAAD ground-based radars [GBR] have significantly advanced 
the Pentagon's ground-based missile tracking capability. Thus, 
the Committee endorses bringing the TAWS Program to an orderly 
conclusion and transferring any lessons learned to the ABL 
Program.
    B-1B modifications.--The Committee recommendation deletes 
$33,100,000 budgeted for procurement of the ALE-50 towed decoy 
systems [TDS] for the B-1B aircraft fleet. Consistent with the 
observations contained in the ``Procurement of Product 
Improvements,'' the Committee believes these purchases should 
be deferred. The Committee urges the Defense Department to 
proceed with the block F upgrade which will install a more 
capable fiber optic towed decoy [FOTD].
    Commander in Chief [CINC] support aircraft.--The Committee 
recommendation provides $79,600,000 to purchase two C-37 
aircraft for use as CINC support aircraft. The Committee 
addresses this issue further in the O&M, Air Force section of 
this report.
    Onboard oxygen generating system [OBOGS].--The Committee 
now understands that OBOGS installations on the F-117 are under 
consideration. The maturity of the technology, the availability 
of several nondevelopmental candidates, and the accelerated 
implementation cost payback through O&M savings justify early 
OBOGS installations. The Air Force is directed to fund and 
conduct a 4-year nondevelopmental OBOGS installation program 
for the Active and Reserve inventory of F-16, A-10, and F-117 
aircraft starting in fiscal year 2001. The Committee further 
directs the Air Force to consider the benefits of maintaining 
maximum OBOGS hardware commonality in these installations. 
Given the availability of mature OBOGS technology, the 
Committee believes the Air Force can develop or implement its 
OBOGS installation plans without further R&D expenditures, 
except as minimally required for unique aircraft integration 
and test purposes.
    In addition, having already developed and initiated the 
production of OBOGS for the T-6A trainer, the Air Force is 
directed to exploit the benefits of hardware commonality 
through the installation of T-6A-common OBOGS on the T-38 
trainer starting in fiscal year 2001. Finally, the Air Force 
should assess whether inclusion of OBOGS installation 
provisions are appropriate during the T-38 avionics upgrade 
program.

                     Missile Procurement, Air Force

Appropriations, 1998....................................  $2,394,202,000
Budget estimate, 1999...................................   2,359,803,000
Committee recommendation................................   2,219,299,000

    The Committee recommends an appropriation of $2,219,299,000 
for the ``Missile procurement, Air Force'' account for fiscal 
year 1999. This recommendation is $140,504,000 below the budget 
request.
    This appropriation provides financing for the construction, 
procurement, and modification of missiles, rockets, spacecraft, 
and related equipment, including investment and repair parts, 
ground-handling equipment, and training devices; and the 
expansion of public and private plants, Government-owned 
equipment, and installations.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                                Budget              Senate             compared 
                                                       Qty.    estimate    Qty.    allowance   Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
           MISSILE PROCUREMENT, AIR FORCE                                                                       
                                                                                                                
BALLISTIC MISSILES: MISSILE REPLACEMENT EQ-BALLISTIC  ......       5,654  ......       5,654  ......  ..........
OTHER MISSILES:                                                                                                 
    STRATEGIC:                                                                                                  
        HAVE NAP....................................  ......  ..........  ......  ..........  ......  ..........
        ADVANCED CRUISE MISSILE.....................  ......       1,395  ......       1,395  ......  ..........
    TACTICAL:                                                                                                   
        JOINT STANDOFF WEAPON.......................     100      52,142     100      52,142  ......  ..........
        AMRAAM......................................     180     114,627     180      87,323  ......     -27,304
        AGM-130 POWERED GBU-15......................  ......         341  ......         341  ......  ..........
        TARGET DRONES...............................  ......      36,263  ......      26,263  ......     -10,000
        INDUSTRIAL FACILITIES.......................  ......       3,152  ......       3,152  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, OTHER MISSILES.....................  ......     207,920  ......     170,616  ......     -37,304
                                                     ===========================================================
MODIFICATION OF INSERVICE MISSILES:                                                                             
    CLASS IV:                                                                                                   
        CONVENTIONAL ALCM...........................  ......      10,034  ......      10,034  ......  ..........
        PEACEKEEPER (M-X)...........................  ......       9,615  ......       9,615  ......  ..........
        MM III MODIFICATIONS........................  ......      90,618  ......     120,618  ......     +30,000
        AGM-65H MAVERICK............................  ......  ..........  ......  ..........  ......  ..........
        AGM-88C HARM................................  ......  ..........  ......  ..........  ......  ..........
        MODIFICATIONS UNDER $2.0M...................  ......         219  ......         219  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, MODIFICATION OF INSERVICE MISSILES.  ......     110,486  ......     140,486  ......     +30,000
                                                     ===========================================================
MISSILE SPARES + REPAIR PARTS: SPARES AND REPAIR                                                                
 PARTS..............................................  ......      38,047  ......      38,047  ......  ..........
OTHER SUPPORT:                                                                                                  
    SPACE PROGRAMS:                                                                                             
        SPACEBORNE EQUIP (COMSEC)...................  ......       9,485  ......       9,485  ......  ..........
        GLOBAL POSITIONING (MYP) SPACE..............  ......      97,395  ......      97,395  ......  ..........
        GLOBAL POSITIONING (MYP) SPACE (AP-CY)......  ......      77,400  ......      77,400  ......  ..........
        NUDET DETECTION SYSTEM......................  ......       2,949  ......       2,949  ......  ..........
        INERTIAL UPPER STAGES SPACE.................  ......      48,012  ......      37,812  ......     -10,200
        TITAN SPACE BOOSTERS SPACE..................  ......     578,540  ......     548,540  ......     -30,000
        MEDIUM LAUNCH VEHICLE SPACE.................       5     188,406       5     188,406  ......  ..........
        MEDIUM LAUNCH VEHICLE SPACE (AP-CY).........  ......  ..........  ......  ..........  ......  ..........
        DEF METEOROLOGICAL SAT PROG SPACE...........  ......      36,066  ......      36,066  ......  ..........
        DEFENSE SUPPORT PROGRAM SPACE...............  ......      89,904  ......      89,904  ......  ..........
        DEFENSE SATELLITE COMM SYSTEM SPACE.........  ......      28,969  ......      28,969  ......  ..........
    SPECIAL PROGRAMS:                                                                                           
        SPECIAL UPDATE PROGRAMS.....................  ......     224,299  ......     131,299  ......     -93,000
        SPECIAL PROGRAMS............................  ......     616,271  ......     616,271  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, OTHER SUPPORT......................  ......   1,997,696  ......   1,864,496  ......    -133,200
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......  ..........  ......  ..........
                                                     ===========================================================
      TOTAL, MISSILE PROCUREMENT, AIR FORCE.........  ......   2,359,803  ......   2,219,299  ......    -140,504
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are excess to firm 
program requirements based on delays in the release of prior-
year funds; late contract efforts; slow execution of prior-year 
funds; differences between the budget request and the actual 
program plans; or are lower priority relative to other 
programs.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
AMRAAM..........................................................         114,627          87,327         -27,300
Target drones...................................................          36,263          26,263         -10,000
Inertial upper stages space.....................................          48,012          37,812         -10,200
Titan space boosters space......................................         578,540         548,540         -30,000
----------------------------------------------------------------------------------------------------------------

    Advanced-medium-range air-to-air missile [AMRAAM].--The 
Committee recommends a reduction to the AMRAAM missile based on 
a recommendation from the GAO concerning savings in production 
resulting from the merger of Raytheon and Hughes missile 
systems companies.
    Inertial upper stages space.--The Committee recommends a 
reduction based on a recommendation from the GAO that 
integration and launch support and engineering change order 
costs are lower than previously estimated.
    Titan space boosters.--The Committee recommends a reduction 
based on the Air Force decision to move from a 40 vehicle to a 
39 vehicle buy as well as savings due to renegotiated contract 
costs for the entire Titan IV program.
    Target drones.--The Committee recommends a reduction to 
target drones based on an Air Force decision to revise 
requirements and procurement plans for aerial targets since the 
submission of the budget.

                           OTHER ADJUSTMENTS

    The Committee recommends incorporating the following 
adjustments to the budget estimate, in accordance with the 
Senate authorization committee action.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
MM III modifications............................................          90,618         120,618         +30,000
----------------------------------------------------------------------------------------------------------------

                  Procurement of Ammunition, Air Force

Appropriations, 1998....................................    $395,534,000
Budget estimate, 1999...................................     384,161,000
Committee recommendation................................     384,161,000

    This appropriation finances the acquisition of ammunition, 
modifications, spares, weapons, and other ammunition-related 
items for the Air Force.
    The Committee recommends an appropriation of $384,161,000 
for the ``Procurement of ammunition, Air Force'' account for 
fiscal year 1999.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                         Senate 
                                                                                                        compared
                                                     Qty.       Budget      Qty.       Senate    Qty.      to   
                                                               estimate              allowance           budget 
                                                                                                        estimate
----------------------------------------------------------------------------------------------------------------
      PROCUREMENT OF AMMUNITION, AIR FORCE                                                                      
                                                                                                                
PROCUREMENT OF AMMO, AIR FORCE:                                                                                 
    ROCKETS:                                                                                                    
        2.75 INCH ROCKET MOTOR..................       6,139      3,399       6,139      3,399  ......  ........
        2.75 INCH ROCKET HEAD SIGNATURE.........  ..........  .........  ..........  .........  ......  ........
        2.75 INCH ROCKET, FLARE IR..............       2,530      2,693       2,530      2,693  ......  ........
        ITEMS LESS THAN $2,000,000..............  ..........      2,042  ..........      2,042  ......  ........
    CARTRIDGES:                                                                                                 
        5.56 MM.................................      20,026      5,394      20,026      5,394  ......  ........
        20 MM TRAINING..........................  ..........  .........  ..........  .........  ......  ........
        30 MM TRAINING..........................         769      5,495         769      5,495  ......  ........
        CARTRIDGE CHAFF RR-180..................         795     11,661         795     11,661  ......  ........
        CARTRIDGE CHAFF RR-188..................         876      2,548         876      2,548  ......  ........
        SIGNAL MK-4 MOD 3.......................         260        760         260        760  ......  ........
        ITEMS LESS THAN $2,000,000..............  ..........      5,447  ..........      5,447  ......  ........
    BOMBS:                                                                                                      
        MK-82 INERT/BDU-50......................      29,368     22,490      29,368     22,490  ......  ........
        GBU-28 HARD TARGET PENETRATOR...........         163     24,256         163     24,256  ......  ........
        GBU--37.................................          10        977          10        977  ......  ........
        BOMB PRACTICE 25 POUND..................     266,801      3,842     266,801      3,842  ......  ........
        2000 LB HE BOMB MK-84...................       1,928      9,391       1,928      9,391  ......  ........
        MK-84 BOMB-EMPTY........................       2,894      7,138       2,894      7,138  ......  ........
        SENSOR FUZED WEAPON.....................         295    125,992         295    125,992  ......  ........
        JOINT DIRECT ATTACK MUNITION............       2,187     53,157       2,187     53,157  ......  ........
        WIND CORRECTED MUNITIONS DISPENSER......         676     13,862         676     13,862  ......  ........
        ITEMS LESS THAN $2,000,000..............  ..........      2,149  ..........      2,149  ......  ........
    ITEMS LESS THAN $2,000,000:                                                                                 
        FLARE, IR MJU-7B:                                                                                       
            ASTE (INFRARED EXPENDABLE)..........      34,154      4,886      34,154      4,886  ......  ........
            FLARE, IR MJU-7B....................     355,826      8,882     355,826      8,882  ......  ........
            MJU-10B.............................     198,602     10,373     198,602     10,373  ......  ........
            M-206 CARTRIDGE FLARE...............     881,944     11,430     881,944     11,430  ......  ........
            CAD/PAD.............................  ..........     14,275  ..........     14,275  ......  ........
            LUU-19 FLARE........................       3,926      4,338       3,926      4,338  ......  ........
            REPLENISHMENT SPARES................  ..........      1,896  ..........      1,896  ......  ........
            MODIFICATIONS.......................  ..........         49  ..........         49  ......  ........
            ITEMS LESS THAN $2,000,000..........  ..........      4,447  ..........      4,447  ......  ........
        FUZES: JOINT PROGRAMMABLE FUSE  (JPF)...       3,861     15,326       3,861     15,326  ......  ........
                                                 ---------------------------------------------------------------
            TOTAL, AMMUNITION...................  ..........    378,595  ..........    378,595  ......  ........
                                                 ===============================================================
WEAPONS:                                                                                                        
    SMALL ARMS:                                                                                                 
        M-16 A2 RIFLE...........................  ..........      4,450  ..........      4,450  ......  ........
        9 MM COMPACT PISTOL.....................         345        232         345        232  ......  ........
        M-9 PISTOL..............................       1,576        767       1,576        767  ......  ........
        ITEMS LESS THAN $2,000,000..............  ..........        117  ..........        117  ......  ........
                                                 ---------------------------------------------------------------
          TOTAL, WEAPONS........................  ..........      5,566  ..........      5,566  ......  ........
ECONOMIC ASSUMPTIONS............................  ..........  .........  ..........  .........  ......  ........
                                                 ===============================================================
      TOTAL, PROCUREMENT OF AMMUNITION, AIR                                                                     
       FORCE....................................  ..........    384,161  ..........    384,161  ......  ........
----------------------------------------------------------------------------------------------------------------

                      Other Procurement, Air Force

Appropriations, 1998....................................  $6,592,909,000
Budget estimate, 1999...................................   6,974,387,000
Committee recommendation................................   6,904,164,000

    The Committee recommends an appropriation of $6,904,164,000 
for the ``Other procurement, Air Force'' account for fiscal 
year 1999. The recommendation is a decrease of $70,223,000 from 
the budget request.
    This appropriation provides for the procurement of weapons 
systems and equipment other than aircraft and missiles. 
Included are munitions, other weapons, the leasing of vehicles, 
electronic and telecommunications systems for command and 
control of operational forces, and ground support equipment for 
weapons systems and supporting structure.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                               Budget              Senate              compared 
                                                      Qty.    estimate    Qty.    allowance    Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
            OTHER PROCUREMENT, AIR FORCE                                                                        
                                                                                                                
VEHICULAR EQUIPMENT:                                                                                            
    PASSENGER CARRYING VEHICLES:                                                                                
        SEDAN, 4 DR 4X2............................      54         780      54  ..........  .......        -780
        STATION WAGON, 4X2.........................      22         413  ......  ..........  .......        -413
        BUSES......................................      92       5,174  ......  ..........      -92      -5,174
        AMBULANCES.................................       4         306  ......  ..........       -4        -306
        LAW ENFORCEMENT VEHICLE....................      95       1,817      95       1,817  .......  ..........
        ARMORED SEDAN..............................       1         239       1  ..........  .......        -239
    CARGO + UTILITY VEHICLES:                                                                                   
        TRUCK, CARGO-UTILITY, 3/4T, 4X4............     225       6,160  ......  ..........       -5      -6,160
        TRUCK, CARGO-UTILITY, 1/2T, 4X2............     104       2,612  ......  ..........  .......      -2,612
        TRUCK, PICKUP, 1/2T, 4X2...................     222       3,379  ......  ..........  .......      -3,379
        TRUCK, PICKUP, COMPACT.....................     196       2,445  ......  ..........  .......      -2,445
        TRUCK MULTI-STOP 1 TON 4X2.................     315       8,708     315       8,708  .......  ..........
        TRUCK CARRYALL.............................     160       3,898     160       3,898  .......  ..........
        COMMERCIAL UTILITY CARGO VEHICLE...........  ......  ..........  ......  ..........  .......  ..........
        FAMILY MEDIUM TACTICAL VEHICLES............  ......  ..........  ......  ..........  .......  ..........
        HIGH MOBILITY VEHICLE (MYP)................      75       4,172      75       4,172  .......  ..........
        TRUCK TRACTOR, OVER 5T.....................      55       3,611      55       3,611  .......  ..........
        TRUCK, UTILITY.............................     124       3,347  ......  ..........     -124      -3,347
        CAP VEHICLES...............................  ......         744  ......         744  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......       3,843  ......       3,843  .......  ..........
    SPECIAL PURPOSE VEHICLES:                                                                                   
        HMMWV, ARMORED.............................  ......  ..........  ......  ..........  .......  ..........
        TRACTOR, TOW, FLIGHTLINE...................     279       8,001     279       8,001  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......      12,680  ......      12,680  .......  ..........
    FIRE FIGHTING EQUIPMENT:                                                                                    
        TRUCK CRASH P-19...........................      13       6,023      13       6,023  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......       2,287  ......       2,287  .......  ..........
    MATERIALS HANDLING EQUIPMENT:                                                                               
        TRUCK, F/L 6,000 LB........................      84       2,328      84       2,328  .......  ..........
        TRUCK, F/L 10,000 LB.......................      56       4,295      56       4,295  .......  ..........
        60K A/C LOADER.............................      60      89,179      60      89,179  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......       3,200  ......       3,200  .......  ..........
    BASE MAINTENANCE SUPPORT:                                                                                   
        TRUCK, DUMP................................  ......  ..........  ......  ..........  .......  ..........
        RUNWAY SNOW REMOVAL AND CLEANING EQUIP.....      41       3,928      41       3,928  .......  ..........
        MODIFICATIONS..............................  ......         900  ......         900  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......       7,663  ......       7,663  .......  ..........
                                                    ------------------------------------------------------------
          TOTAL, VEHICULAR EQUIPMENT...............  ......     192,132  ......     167,277  .......     -24,855
                                                    ============================================================
ELECTRONICS AND TELECOMMUNICATIONS EQUIP:                                                                       
    COMM SECURITY EQUIPMENT (COMSEC):                                                                           
        COMSEC EQUIPMENT...........................  ......      30,311  ......      30,311  .......  ..........
        MODIFICATIONS (COMSEC).....................  ......         487  ......         487  .......  ..........
    INTELLIGENCE PROGRAMS:                                                                                      
        INTELLIGENCE DATA HANDLING SYS.............  ......      17,574  ......      17,574  .......  ..........
        INTELLIGENCE TRAINING EQUIPMENT............  ......       5,735  ......       5,735  .......  ..........
        INTELLIGENCE COMM EQUIP....................  ......       5,697  ......       5,697  .......  ..........
    ELECTRONICS PROGRAMS:                                                                                       
        AIR TRAFFIC CTRL/LAND SYS (ATCALS).........  ......  ..........       2      16,000       +2     +16,000
        NATIONAL AIRSPACE SYSTEM...................  ......      45,308  ......      45,308  .......  ..........
        THEATER AIR CONTROL SYS IMPROVEMENT........  ......      30,002  ......      30,002  .......  ..........
        WEATHER OBSERV/FORECAST....................  ......      18,581  ......      18,581  .......  ..........
        STRATEGIC COMMAND AND CONTROL..............  ......      10,848  ......      10,848  .......  ..........
        CHEYENNE MOUNTAIN COMPLEX..................  ......         896  ......         896  .......  ..........
        TAC SIGINT SUPPORT.........................  ......       1,883  ......       1,883  .......  ..........
    SPECIAL COMM-ELECTRONICS PROJECTS:                                                                          
        AUTOMATIC DATA PROCESSING EQUIP............  ......      33,190  ......      33,190  .......  ..........
        AF GLOBAL COMMAND & CONTROL SYS............  ......       5,819  ......       5,819  .......  ..........
        MOBILITY COMMAND AND CONTROL...............  ......       7,844  ......       7,844  .......  ..........
        AIR FORCE PHYSICAL SECURITY SYSTEM.........  ......      26,965  ......      26,965  .......  ..........
        COMBAT TRAINING RANGES.....................  ......      13,194  ......      13,194  .......  ..........
        MINIMUM ESSENTIAL EMERGENCY COMM NET.......  ......       1,545  ......       1,545  .......  ..........
        FORCE PROTECTION/ANTI-TERRORISM............  ......  ..........  ......  ..........  .......  ..........
        C\3\ COUNTERMEASURES.......................  ......      10,228  ......      17,728  .......      +7,500
        JOINT SURVEILLANCE SYSTEM..................  ......      11,137  ......  ..........  .......     -11,137
        BASE LEVEL DATA AUTO PROGRAM...............  ......      28,876  ......      27,000  .......      -1,876
        THEATER BATTLE MGT C2 SYS..................  ......      44,654  ......      44,654  .......  ..........
    AIR FORCE COMMUNICATIONS:                                                                                   
        INFORMATION TRANSMISSION SYSTEMS...........  ......      10,792  ......      10,792  .......  ..........
        BASE INFORMATION INFRASTRUCTURE............  ......     159,383  ......     158,383  .......      -1,000
        USCENTCOM..................................  ......       4,458  ......       4,458  .......  ..........
        AUTOMATED TELECOMMUNICATIONS PRG...........  ......      14,884  ......      14,884  .......  ..........
    DISA PROGRAMS:                                                                                              
        NAVSTAR GPS SPACE..........................  ......       1,447  ......       1,447  .......  ..........
        DEFENSE METEOROLOGICAL SAT PROG  SPACE.....  ......      10,735  ......      10,735  .......  ..........
        NUDET DETECTION SYS (NDS) SPACE............  ......       1,278  ......       1,278  .......  ..........
        AF SATELLITE CONTROL NETWORK SPACE.........  ......      26,007  ......      26,007  .......  ..........
        EASTERN/WESTERN RANGE I&M SPACE............  ......      93,848  ......      93,848  .......  ..........
        MILSATCOM SPACE............................  ......      28,233  ......      28,233  .......  ..........
        SPACE MODS SPACE...........................  ......       7,917  ......       7,917  .......  ..........
    ORGANIZATION AND BASE:                                                                                      
        TACTICAL C-E EQUIPMENT.....................  ......      31,064  ......      31,064  .......  ..........
        COMBAT SURVIVOR/EVADER LOCATER  RADIO......  ......      13,757  ......      13,757  .......  ..........
        RADIO EQUIPMENT............................  ......      12,203  ......      12,203  .......  ..........
        TV EQUIPMENT (AFRTV).......................  ......       1,984  ......       1,984  .......  ..........
        CCTV/AUDIOVISUAL EQUIPMENT.................  ......       3,195  ......       3,195  .......  ..........
        BASE COMM INFRASTRUCTURE...................  ......      27,829  ......      27,829  .......  ..........
        CAP COM & ELECT............................  ......         378  ......         378  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......       7,106  ......       7,106  .......  ..........
    MODIFICATIONS: COMM ELECT MODS.................  ......      57,701  ......      57,701  .......  ..........
                                                    ------------------------------------------------------------
      TOTAL, ELECTRONICS AND TELECOMMUNICATIONS                                                                 
       EQUIP.......................................  ......     864,973  ......     874,460  .......      +9,487
                                                    ============================================================
OTHER BASE MAINTENANCE AND SUPPORT EQUIP:                                                                       
    TEST EQUIPMENT:                                                                                             
        BASE/ALC CALIBRATION PACKAGE...............  ......      11,021  ......      11,021  .......  ..........
        PRIMARY STANDARDS LABORATORY PACK-  AGE....  ......       1,064  ......       1,064  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......       6,706  ......       6,706  .......  ..........
    PERSONAL SAFETY AND RESCUE EQUIP:                                                                           
        NIGHT VISION GOGGLES.......................  ......       8,118  ......       8,118  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......       3,528  ......       3,528  .......  ..........
    DEPOT PLANT + MATERIALS HANDLING EQ:                                                                        
        MECHANIZED MATERIAL HANDLING EQUIP.........  ......      14,516  ......      14,516  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......       4,124  ......       4,124  .......  ..........
    ELECTRICAL EQUIPMENT:                                                                                       
        GENERATORS-MOBILE ELECTRIC.................  ......       1,411  ......       1,411  .......  ..........
        FLOODLIGHTS................................  ......      10,714  ......      10,714  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......       2,356  ......       2,356  .......  ..........
    BASE SUPPORT EQUIPMENT:                                                                                     
        BASE PROCURED EQUIPMENT....................  ......       5,644  ......       5,644  .......  ..........
        MEDICAL/DENTAL EQUIPMENT...................  ......       8,703  ......       8,703  .......  ..........
        ENVIRONMENTAL PROJECTS.....................  ......         973  ......         973  .......  ..........
        AIR BASE OPERABILITY.......................  ......       5,363  ......      12,363  .......      +7,000
        PALLET AIR CARGO...........................  ......       2,001  ......       2,001  .......  ..........
        NET ASSEMBLY, 108 INCH X 88 INCH...........  ......       1,916  ......       1,916  .......  ..........
        BLADDERS FUEL..............................  ......       1,329  ......       1,329  .......  ..........
        AERIAL BULK FUEL DELIVERY SYSTEM...........  ......       4,320  ......       4,320  .......  ..........
        PHOTOGRAPHIC EQUIPMENT.....................  ......       5,576  ......       5,576  .......  ..........
        PRODUCTIVITY INVESTMENTS...................  ......      12,304  ......      12,304  .......  ..........
        MOBILITY EQUIPMENT.........................  ......      35,973  ......      35,973  .......  ..........
        DEPLOYMENT/EMPLOYMENT CONTAINERS...........  ......       2,258  ......       2,258  .......  ..........
        AIR CONDITIONERS...........................  ......      10,668  ......      10,668  .......  ..........
        ITEMS LESS THAN $2,000,000.................  ......      16,844  ......      16,844  .......  ..........
    SPECIAL SUPPORT PROJECTS:                                                                                   
        INTELLIGENCE PRODUCTION ACTIVITY...........  ......      72,605  ......      72,605  .......  ..........
        TECH SURV COUNTERMEASURES EQ...............  ......       2,035  ......       2,035  .......  ..........
        DARP RC135.................................  ......      12,656  ......      12,656  .......  ..........
        DARP, MRIGS................................  ......      79,613  ......      79,613  .......  ..........
        SELECTED ACTIVITIES........................  ......   5,322,644  ......   5,256,344  .......     -66,300
        SPECIAL UPDATE PROGRAM.....................  ......     179,813  ......     179,813  .......  ..........
        INDUSTRIAL PREPAREDNESS....................  ......       1,162  ......       1,162  .......  ..........
        MODIFICATIONS..............................  ......         170  ......         170  .......  ..........
        FIRST DESTINATION TRANSPORTATION...........  ......      16,442  ......      16,000  .......        -442
                                                    ------------------------------------------------------------
          TOTAL, OTHER BASE MAINTENANCE AND SUPPORT                                                             
           EQUIP...................................  ......   5,864,570  ......   5,804,828  .......     -59,742
                                                    ============================================================
SPARE AND REPAIR PARTS:                                                                                         
    SPARES AND REPAIR PARTS........................  ......      52,712  ......      52,712  .......  ..........
    VEHICLE LEASES.................................  ......  ..........  ......       4,887  .......      +4,887
ECONOMIC ASSUMPTIONS...............................  ......  ..........  ......  ..........  .......  ..........
CIVIL AIR PATROL...................................  ......  ..........  ......  ..........  .......  ..........
                                                    ============================================================
      TOTAL, OTHER PROCUREMENT, AIR FORCE..........  ......   6,974,387  ......   6,904,164  .......     -70,223
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

    The Committee recommends incorporating the following 
adjustment reflect congressional priorities; to implement 
increasese endorsed and/or requested by the Air Force to 
address budget shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Sedan, 4 dr 42.........................................             780  ..............            -780
Station wagon, 42......................................             413  ..............            -413
Buses...........................................................           5,174  ..............          -5,174
Ambulances......................................................             306  ..............            -306
Armored sedan...................................................             239  ..............            -239
Truck, cargo-utility, 3/4T, 44.........................           6,160  ..............          -6,160
Truck, cargo-utility, 1/2T, 42.........................           2,612  ..............          -2,612
Truck, pickup, 1/2T, 42................................           3,379  ..............          -3,379
Truck, pickup, compact..........................................           2,445  ..............          -2,445
Truck, utility..................................................           3,347  ..............          -3,347
Air traffic ctrl/land system [ATCALS]...........................  ..............          16,000         +16,000
C\3\ countermeasures............................................          10,228          17,728          +7,500
Joint surveillance system.......................................          11,137  ..............         -11,137
Base Level Data Auto Program....................................          28,876          27,000          -1,876
Base information infrastructure.................................         159,383         158,383          -1,000
Air base operability............................................           5,363          12,363          +7,000
First destination transport.....................................          16,442          16,000            -442
Vehicle leases..................................................  ..............           4,887          +4,887
----------------------------------------------------------------------------------------------------------------

    Mobile radar approach control [MRAC].--The Committee 
recommends an increase of $16,000,000 to air traffic control 
land systems only for the procurement of two MRAC systems for 
the Air National Guard.
    Secure terminal equipment [STE].--The Committee recommends 
an increase of $7,500,000 in C\3\ countermeasures for the 
procurement of only the STE.
    Spares information system.--The Committee recommends an 
increase of $3,000,000 in air base operability for the 
procurement of the spares information system for Hill Air Force 
Base. This system manages the workflow associated with 
modifying, reviewing, routing, and approving parts data for 
procurement.
    Supply asset tracking system [SATS].--The Committee 
recommends an increase of $4,000,000 in air base operability. 
The supply asset tracking system provides visibility of 
supplies from receipt to final issue. The increase is only for 
the procurement of SATS.

                       Procurement, Defense-Wide

Appropriations, 1998....................................  $2,106,444,000
Budget estimate, 1999...................................   2,041,650,000
Committee recommendation................................   1,932,250,000

    The Committee recommends an appropriation of $1,932,250,000 
for the ``Procurement, defense-wide'' account for fiscal year 
1999, a decrease of $109,400,000 from the budget request. This 
appropriation provides for procurement of capital equipment for 
the Office of the Secretary of Defense, the Defense Special 
Weapons Agency, the Defense Information Systems Agency, the 
Defense Logistics Agency, the Defense Investigative Service, 
the Defense Contract Audit Agency, the Defense Support Project 
Office, the Joint Staff, the On-Site Inspection Agency, the 
Defense Commissary Agency, special operations forces, chemical 
biological defense activities, and other classified and 
unclassified activities of the Department of Defense. The 
program includes procurement of automatic data processing 
equipment, mechanized material handling systems, the lease of 
general and special purpose vehicles, supplies, spare parts, 
communications equipment, expansion of public and private 
plants, acquisition of land, and for other purposes.

                     committee recommended program

    The following table details the Committee recommendations 
in comparison to the President's budget:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                                Budget              Senate             compared 
                                                       Qty.    estimate    Qty.    allowance   Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
              PROCUREMENT, DEFENSE-WIDE                                                                         
                                                                                                                
MAJOR EQUIPMENT:                                                                                                
    MAJOR EQUIPMENT, OSD/WHS:                                                                                   
        MOTOR VEHICLES..............................  ......         302  ......         302  ......  ..........
        MAJOR EQUIPMENT, OSD........................  ......     100,245  ......     100,245  ......  ..........
        MAJOR EQUIPMENT, WHS........................  ......      28,123  ......      28,123  ......  ..........
        ARMED FORCE INFORMATION SERVICE.............  ......       5,456  ......       5,456  ......  ..........
        DEPARTMENT OF DEFENSE EDUCATION ACTIVITY....  ......       1,590  ......       1,590  ......  ..........
        DEFENSE TECHNOLOGY SECURITY ADMINISTRATION..  ......  ..........  ......  ..........  ......  ..........
        DARP........................................  ......      77,435  ......      77,435  ......  ..........
    MAJOR EQUIPMENT, NSA: DEFENSE AIRBORNE                                                                      
     RECONNAISSANCE PROGRAM.........................  ......      11,988  ......      11,988  ......  ..........
    MAJOR EQUIPMENT, DSWA:                                                                                      
        VEHICLES....................................  ......  ..........  ......  ..........  ......  ..........
        OTHER MAJOR EQUIPMENT.......................  ......  ..........  ......  ..........  ......  ..........
    MAJOR EQUIPMENT, DISA:                                                                                      
        MOBILE SATELLITE SYSTEM TECHNOLOGIES........  ......       7,932  ......       7,932  ......  ..........
        INFORMATION SYSTEMS SECURITY................  ......      18,364  ......      18,364  ......  ..........
        CONTINUITY OF OPERATIONS....................  ......       4,060  ......       4,060  ......  ..........
        DEFENSE MESSAGE SYSTEM......................  ......      43,372  ......      43,372  ......  ..........
        GLOBAL COMMAND AND CONTROL SYSTEM...........  ......       4,379  ......       4,379  ......  ..........
        GLOBAL COMBAT SUPPORT SYSTEM................  ......       6,711  ......       6,711  ......  ..........
        STANDARD TACTICAL ENTRY POINT...............  ......      11,956  ......      11,956  ......  ..........
        PLANS & PROGRAM ANALYSIS SUPPORT CENTER.....  ......  ..........  ......  ..........  ......  ..........
        ITEMS LESS THAN $2 MILLION..................  ......      14,383  ......      14,383  ......  ..........
    MAJOR EQUIPMENT, DLA:                                                                                       
        DEFENSE SUPPORT ACTIVITIES..................  ......      68,682  ......      88,682  ......     +20,000
        AUTOMATIC DOCUMENT CONVERSION SYS-  TEM.....  ......  ..........  ......  ..........  ......  ..........
    MAJOR EQUIPMENT, DSS:                                                                                       
        VEHICLES....................................     267       3,200     267       3,200  ......  ..........
        OTHER CAPITAL EQUIPMENT.....................  ......       1,582  ......       1,582  ......  ..........
    MAJOR EQUIPMENT, DCAA: ITEMS LESS THAN $2                                                                   
     MILLION........................................  ......       3,667  ......       3,667  ......  ..........
    MAJOR EQUIPMENT, DSPO: MAJOR EQUIPMENT, DSPO....  ......      16,214  ......      16,214  ......  ..........
    MAJOR EQUIPMENT, TJS: MAJOR EQUIPMENT, TJS......  ......      33,536  ......      33,536  ......  ..........
    ON-SITE INSPECTION AGENCY: OTHER CAPITAL                                                                    
     EQUIPMENT......................................  ......  ..........  ......  ..........  ......  ..........
    BALLISTIC MISSILE DEFENSE ORGANIZATION:                                                                     
        PATRIOT PAC-3...............................      60     343,235  ......     192,735     -60    -150,500
        C4I.........................................  ......      22,827  ......      22,827  ......  ..........
        NAVY AREA TBDM PROGRAM......................      21      43,318      21      43,318  ......  ..........
        BMC3........................................  ......  ..........  ......  ..........  ......  ..........
    DEFENSE COMMISSARY AGENCY: EQUIPMENT............  ......  ..........  ......  ..........  ......  ..........
    DEF THREAT RED & TREATY COMP AGCY:                                                                          
        VEHICLES....................................  ......         134  ......         134  ......  ..........
        OTHER MAJOR EQUIPMENT.......................  ......      29,029  ......      29,029  ......  ..........
    DEFENSE SECURITY ASSISTANCE AGENCY: OTHER MAJOR                                                             
     EQUIPMENT......................................  ......          73  ......          73  ......  ..........
                                                     -----------------------------------------------------------
        TOTAL, MAJOR EQUIPMENT......................  ......     901,793  ......     771,293  ......    -130,500
                                                     ===========================================================
SPECIAL OPERATIONS COMMAND:                                                                                     
    AVIATION PROGRAMS:                                                                                          
        SOF ROTARY WING UPGRADES....................  ......      46,990  ......      46,990  ......  ..........
        SOF TRAINING SYSTEMS........................  ......       6,053  ......       6,053  ......  ..........
        CV-22 SOF MODIFICATION......................  ......       3,983  ......       3,983  ......  ..........
        MC-130H COMBAT TALON II.....................  ......      18,985  ......      18,985  ......  ..........
        AC-130U GUNSHIP ACQUISITION.................  ......      28,600  ......      28,600  ......  ..........
        C-130 MODIFICATIONS.........................  ......      58,359  ......      63,359  ......      +5,000
        OH-6 PROCUREMENT & MODIFICATIONS............  ......  ..........  ......  ..........  ......  ..........
        AIRCRAFT SUPPORT............................  ......         878  ......         878  ......  ..........
    SHIPBUILDING:                                                                                               
        PC,CYCLONE CLASS............................  ......  ..........  ......  ..........  ......  ..........
        ADVANCED SEAL DELIVERY SYSTEM (ASDS)........  ......      10,251  ......      10,251  ......  ..........
        ADVANCED SEAL DELIVERY SYSTEM (ASDS) (AP-CY)  ......         293  ......         293  ......  ..........
        MK VIII MOD 1--SEAL DELIVERY VEHICLE........  ......         589  ......         589  ......  ..........
        SUBMARINE CONVERSION........................  ......       5,990  ......       5,990  ......  ..........
        MK V SPECIAL OPERATIONS CRAFT (MK V SOC)....  ......  ..........  ......  ..........  ......  ..........
    AMMUNITION PROGRAMS:                                                                                        
        SOF ORDNANCE ACQUISITION....................  ......      15,707  ......      21,707  ......      +6,000
        SOF ORDNANCE REPLENISHMENT..................  ......      28,784  ......      28,784  ......  ..........
        REMOTE ACTIVATION MUNITION SYSTEMS..........  ......  ..........  ......  ..........  ......  ..........
    OTHER PROCUREMENT PROGRAMS:                                                                                 
        MARITIME EQUIPMENT MODIFICATIONS............  ......      26,012  ......      26,012  ......  ..........
        NAVAL SPECIAL WARFARE RIGID INFLATABLE BOAT.  ......      15,606  ......      15,606  ......  ..........
        SPARES AND REPAIR PARTS.....................  ......      40,237  ......      40,237  ......  ..........
        COMM EQUIPMENT & ELECTRONICS................  ......      68,064  ......      68,064  ......  ..........
        SOF INTELLIGENCE SYSTEMS....................  ......      19,148  ......      19,148  ......  ..........
        SOF SMALL ARMS & WEAPONS....................  ......      15,421  ......      15,421  ......  ..........
        SOF MARITIME EQUIPMENT......................  ......       2,060  ......       2,060  ......  ..........
        SOLDIER ENHANCEMENT PROGRAM.................  ......  ..........  ......  ..........  ......  ..........
        MISCELLANEOUS EQUIPMENT.....................  ......       9,714  ......       9,714  ......  ..........
        SOF PLANNING AND REHEARSAL SYSTEM...........  ......       1,027  ......       1,027  ......  ..........
        CLASSIFIED PROGRAMS.........................  ......      73,991  ......      84,091  ......     +10,100
        PSYOP EQUIPMENT.............................  ......       9,518  ......       9,518  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, SPECIAL OPERATIONS COMMAND.........  ......     506,260  ......     527,360  ......     +21,100
                                                     ===========================================================
CHEMICAL/BIOLOGICAL DEFENSE:                                                                                    
    CBDP:                                                                                                       
        INDIVIDUAL PROTECTION.......................  ......     128,423  ......     128,423  ......  ..........
        DECONTAMINATION.............................  ......      10,982  ......      10,982  ......  ..........
        JOINT BIO DEFENSE PROGRAM...................  ......      27,847  ......      27,847  ......  ..........
        COLLECTIVE PROTECTION.......................  ......      20,452  ......      20,452  ......  ..........
        CONTAMINATION AVOIDANCE.....................  ......      96,199  ......      96,199  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, CHEMICAL/BIOLOGICAL DEFENSE........  ......     283,903  ......     283,903  ......  ..........
CLASSIFIED PROGRAMS.................................  ......     349,694  ......     349,694  ......  ..........
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......  ..........  ......  ..........
                                                     ===========================================================
      TOTAL, PROCUREMENT, DEFENSE-WIDE..............  ......   2,041,650  ......   1,932,250  ......    -109,400
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Defense support activities......................................          68,682          88,682         +20,000
Automated document conversion systems...........................  ..............          20,000         +20,000
Patriot PAC-3...................................................         343,235         192,735        -150,500
C-130 modifications; silent shield..............................          58,359          63,359          +5,000
SOF ordnance acquisition; RAMS..................................          15,707          21,707          +6,000
Remote activation munition systems..............................  ..............           6,000          +6,000
Classified programs.............................................          73,991          84,091         +10,100
----------------------------------------------------------------------------------------------------------------

    Patriot advanced capability 3 [PAC-3].--The Committee 
provides $192,735,000, a decrease of $150,500,000 to the budget 
request for Patriot PAC-3 procurement. The reduction deletes 
$100,800,000 for the planned low rate initial procurement 
[LRIP] of 60 PAC-3 missiles, $15,000,000 for initial spares, 
$19,700,000 for nonrecurring tooling, and $15,000,000 for 
production support.
    The PAC-3 program's first intercept test has been delayed 
at least 10 months relative to the fiscal year 1998 program 
schedule. However, the Committee is encouraged by the PAC-3 
program's measured and thorough ground testing efforts which 
will, hopefully, pay dividends when the missile begins flight 
testing. However, because of these delays, the fiscal year 1998 
PAC-3 LRIP funds remain available to begin production of PAC-3 
missiles. The availability of the fiscal year 1998 LRIP funds 
make further appropriations for a fiscal year 1999 LRIP 
premature.
    The Committee continues to be concerned about the Ballistic 
Missile Defense Organization's plans to contract for the 
manufacture of missile interceptors based on a single intercept 
flight test. The Committee directs that the fiscal year 1998 
PAC-3 LRIP funds may not be obligated until the PAC-3 missile 
successfully completes three intercept flight tests.
    Vehicle leases.--The Committee recommends that funds 
provided for commercial vehicles are for leases rather than 
procurement.
    Automatic document conversion system.--The Committee 
recommends an additional $20,000,000 in major equipment, DLA 
only for the automated document conversion system [ADCS]. The 
Committee further directs the Department of Defense to submit a 
plan to the Committee by February 1, 1999, on the transition of 
the ADCS Program to service budgets, commencing with the fiscal 
year 2000 budget submission.

                  National Guard and Reserve Equipment

Appropriations, 1998....................................    $653,000,000
Budget estimate, 1999...................................................
Committee recommendation................................     500,000,000

    The Committee recommends a funding level of $500,000,000 
for National Guard and Reserve dedicated equipment. This 
recommendation is $500,000,000 above the budget request.
    The appropriation for this account includes direction for 
each Reserve or National Guard component commander to prepare 
and submit to the congressional defense committees a detailed 
assessment of that component's modernization priorities.
    The Committee maintains that the Reserves and National 
Guard should exercise control of funds provided for their 
modernization in this account. The separate submission of these 
assessments, directly from the components chiefs to the 
committees will ensure that the Reserve and National Guard 
priorities are addressed in the allocation of this 
appropriation.

                     committee recommended program

    The following tables detail the Committee recommendations 
in comparison to the President's budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                        Senate  
                                                                Budget              Senate             compared 
                                                       Qty.    estimate    Qty.    allowance   Qty.    to budget
                                                                                                       estimate 
----------------------------------------------------------------------------------------------------------------
         NATIONAL GUARD & RESERVE EQUIPMENT                                                                     
                                                                                                                
RESERVE EQUIPMENT:                                                                                              
    ARMY RESERVE: MISCELLANEOUS EQUIPMENT...........  ......  ..........  ......      45,000  ......     +45,000
    NAVY RESERVE:                                                                                               
        MISCELLANEOUS EQUIPMENT.....................  ......  ..........  ......      25,000  ......     +25,000
        C-9 REPLACEMENT.............................  ......  ..........  ......      40,000  ......     +40,000
    MARINE CORPS RESERVE: MISCELLANEOUS EQUIPMENT...  ......  ..........  ......      30,000  ......     +30,000
    AIR FORCE RESERVE: MISCELLANEOUS EQUIP-  MENT...  ......  ..........  ......      35,000  ......     +35,000
                                                     -----------------------------------------------------------
        TOTAL, RESERVE EQUIPMENT....................  ......  ..........  ......     175,000  ......    +175,000
                                                     ===========================================================
NATIONAL GUARD EQUIPMENT:                                                                                       
    ARMY NATIONAL GUARD: MISCELLANEOUS EQUIPMENT....  ......  ..........  ......      72,000  ......     +72,000
    AIR NATIONAL GUARD:                                                                                         
        MISCELLANEOUS EQUIPMENT.....................  ......  ..........  ......      40,000  ......     +40,000
        EC-130J.....................................  ......  ..........       1      85,000      +1     +85,000
        C-130J......................................  ......  ..........       2     128,000      +2    +128,000
                                                     -----------------------------------------------------------
          TOTAL, NATIONAL GUARD EQUIPMENT...........  ......  ..........  ......     325,000  ......    +325,000
                                                     ===========================================================
          TOTAL, NATIONAL GUARD & RESERVE EQUIPMENT.  ......  ..........  ......     500,000  ......    +500,000
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

                              army reserve

    Miscellaneous equipment.--The Committee recommends 
$45,000,000 for the procurement of unspecified miscellaneous 
equipment to improve the readiness ratings of Army Reserve 
units.

                              navy reserve

    Miscellaneous equipment.--The Committee recommends 
$25,000,000 for the procurement of unspecified miscellaneous 
equipment to improve the readiness ratings of Navy Reserve 
units.

                          marine corps reserve

    Miscellaneous equipment.--The Committee recommends 
$30,000,000 for the procurement of unspecified miscellaneous 
equipment to improve the readiness ratings of Marine Corps 
Reserve units.

                           air force reserve

    Miscellaneous equipment.--The Committee recommends 
$35,000,000 for the procurement of unspecified miscellaneous 
equipment to improve the readiness ratings of Air Force Reserve 
units.

                          army national guard

    Miscellaneous equipment.--The Committee recommends 
$72,000,000 for the procurement of unspecified miscellaneous 
equipment to improve the readiness ratings of Army National 
Guard units.

                           air national guard

    Miscellaneous equipment.--The Committee recommends 
$40,000,000 for the procurement of unspecified miscellaneous 
equipment to improve the readiness ratings of Air National 
Guard units.

                  National Guard and Reserve Aircraft

    The Committee recommends $253,000,000 for National Guard 
and Reserve aircraft. Of the recommended funds, $128,000,000 is 
provided for two C-130J aircraft, $85,000,000 is provided for 
one EC-130 aircraft, and $40,000,000 for one C-9 replacement 
aircraft for the Navy Reserve.
    Air Force Reserve and Air National Guard.--The Committee 
recognizes that the Air Force Reserve and Air National Guard 
units have been fully integrated into the total force and have 
performed superbly in many contingencies in the past and that 
it is essential they continue to do so in the future. 
Therefore, the Committee believes it is important that weapons 
systems assigned to the Air Reserve Forces be, if not 
identical, at least comparable to those of the active 
components. The Committee strongly recommends that the services 
structure their operational plans and budget submissions 
reflect this guidance.

                       items of special interest

    The Committee agrees that the National Guard and Reserve 
equipment program shall be executed by the heads of the Guard 
and Reserve components with priority consideration for 
miscellaneous equipment appropriations given to the following 
items:
    A2 ODS, counterdrug sensor upgrades, ALR-56M radar warning 
receivers, armored combat earth movers, ATARS MAEO sensors, 
battlefields sensors [IREMBOSS], 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, KC-135 
reengining, LITENING targeting pod system, M88 A2, material 
handling equipment product improvements, mobile electronic 
warfare support system, simulators, SINCGARS radios, onboard 
oxygen generating system, outfitting of the 220th ADA Patriot 
Battalion, Paladin, theater airborne reconnaissance system 
[TARS] upgrades, theater deployable communication equipment, 
UC-35A, UH-1 modernization, vibration management enhancement 
program, UH-60Q upgrades, WC-130J modifications, P-3 
modernization, KITS/LATR upgrades, master cranes, F-16 
intermediate avionics shop, medium truck extended service 
program, and trucks and support equipment for transportation 
companies.

                                TITLE IV

              RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

                      Summary of Committee Action

    The fiscal year 1999 Department of Defense budget request 
for research, development, test, and evaluation [RDT&E] totaled 
$36,078,577,000. Title IV of the accompanying Senate bill 
contains $36,107,571,000, an increase of $28,994,000 or 0.08 
percent, to the budget estimate. The recommended allowance is 
$1,783,753,000 below the fiscal year 1998 appropriation for 
RDT&E in title IV. The following table summarizes the budget 
estimates and Committee recommendations:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Research, development, test, and evaluation:                                                                    
    Army........................................................       4,780,545       4,891,640        +111,095
    Navy........................................................       8,108,923       8,215,519        +106,596
    Air Force...................................................      13,598,093      13,693,153         +95,060
    Defense-wide................................................       9,314,665       9,032,908        -281,757
Director of Test and Evaluation.................................         251,106         249,106          -2,000
Director of Operational Test and Evaluation.....................          25,245          25,245  ..............
                                                                 -----------------------------------------------
      Total, title IV, RDT&E....................................      36,078,577      36,107,571         +28,994
----------------------------------------------------------------------------------------------------------------

                       committee recommendations

    The Committee has reflected a number of its funding 
adjustments in a table format. The Committee directs that the 
funding increases outlined in the tables which follow shall be 
provided only for the specific purposes outlined in the table 
entry.

                    airborne reconnaissance transfer

    The reorganization of airborne reconnaissance within the 
Department of Defense has necessitated a transfer of Defense-
wide RDT&E funds to the services. Therefore, in accordance with 
departmental requests, or as a result of Committee action taken 
during review of the fiscal year 1999 budget request, the 
Committee has transferred funds from RDT&E, Defense-Wide, to 
service RDT&E accounts.

air directed surface-to-air missile [adsam] and air directed air-to-air 
                            missile [adaam]

    The Committee understands that the Department of Defense 
has been evaluating technologies and operational concepts to 
support the use of an aircraft-based sensor to perform 
targeting and fire control for missiles launched from other 
aircraft or ground platforms. Experimentation with this concept 
to date has been insufficient to exploit this capability and to 
understand the potential impacts on doctrine, command and 
control, and joint warfighting operations.
    The Committee believes that the performance of a number of 
current DOD missile systems could be enhanced using this 
airborne fire control concept. Further, the design of systems 
under development could be affected by exploiting ADSAM and 
ADAAM technologies. For example, the medium extended air 
defense system [MEADS] concept might more easily achieve its 
mobility and performance requirements by incorporating an 
airborne fire control radar.
    The Committee has made a series of recommendations to 
permit thorough testing and evaluation of this technology 
through demonstrations. The Committee has included funds in the 
appropriate accounts to permit the purchase of a limited number 
of modified Patriot advanced capability 3 [PAC-3] and standard 
missile block IVA missiles to support live fire testing of this 
concept. The Committee has also included additional funds to 
enable the planning, hardware modifications, and conduct of 
ADSAM and ADAAM experiments.
    Finally, the Committee has made reductions to slow the pace 
of a number of programs which could be affected by the results 
of ADSAM and ADAAM experiments. Specifically, the Committee has 
provided lower appropriations for MEADS, the Joint Land Attack 
Elevated Netted Sensor [JLENS] Program, and related activities.

           Research, Development, Test, and Evaluation, Army

Appropriations, 1998....................................  $5,156,507,000
Budget estimate, 1999...................................   4,780,545,000
Committee recommendation................................   4,891,640,000

    The Committee recommends an appropriation of $4,891,640,000 
for the Army's research, development, test, and evaluation 
programs, an increase of $111,095,000 to the budget request. 
The budget activities and programs funded under this 
appropriation are discussed below.

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Sensors and electronic survivability.--The Committee 
continues to support Army evaluation of the projectile 
detection and cueing program. The Committee is aware that the 
Army Research Lab [ARL] will receive five systems, one of which 
will be mounted on a high mobility multipurpose wheeled vehicle 
[HMMWV]. The Committee also recognizes that the program is in 
development for participation and evaluation under the Military 
Operations in Urban Terrain Advanced Concept Technology 
Demonstration Program. The Committee supports continued 
development of the system with previously appropriated funds 
and transition from an ARL effort to an Army Research, 
Development, and Engineering Center effort in fiscal year 2000 
and beyond.
    Weapons and munitions technology.--In the Department of 
Defense Appropriations Act, 1998, the Congress provided 
$5,000,000 for development and testing of plastic-cased 
ammunition. The Committee understands that the Navy and the 
Special Operations Command have expressed an interest in the 
potential of this technology to provide lighter ammunition. The 
Committee directs that fiscal year 1998 funds be released and 
that the execution of these funds be completed in coordination 
with the Office of Naval Research.
    Environmental quality technology.--The Committee recommends 
$51,742,000, an increase of $37,900,000 above the budget 
request. The Committee adds $20,000,000 for pollution 
prevention research and development initiatives, to be used 
only for the National Defense Center for Environmental 
Excellence to perform the materials and processes partnership 
for pollution prevention [MP\4\] initiative. In addition, the 
Committee provides $5,000,000 for the plasma energy pyrolysis 
system, $5,400,000 for the Small Business Development Center, 
$4,000,000 for agriculturally based bioremediation, and 
$3,500,000 for the Radford environmental development and 
management system. Within the remaining available funds, up to 
$5,000,000 is provided to the U.S. Army Construction 
Engineering Research Laboratory to continue research and 
development environmental compliance projects using the 
personnel and technologies available at the WETO facility.
    The Committee directs the U.S. Army Chemical Weapons School 
to work with a uniquely qualified educational institution to 
assess the ability of biogenic oils to replace petroleum oils 
to produce obscurant smoke during smoke training. The 
assessment shall include the chemical and physical 
characteristics of the produced smoke generated from the state-
of-the-art Army equipment. The toxicology and risk assessment 
will be produced and compared to provide the necessary data for 
evaluating the relative values to identify the preferable 
product.
    The Committee directs that $4,000,000 to continue the 
agriculturally based bioremediation program shall be 
administered by the U.S. Army Waterways Experiment Station, as 
program director with overall technical and fiscal management 
for test, evaluation, and demonstration of remediation 
technologies. The station shall work with the U.S. Department 
of Agriculture and military installations in the Pacific to 
conduct developmental work and project execution as necessary 
to restore contaminated sites in Pacific Island ecosystems.
    Aviation advanced technology.--The Committee provides an 
increase of $21,000,000 to conduct a live fire shootoff of the 
air-to-air Stinger and air-to-air Starstreak missiles as 
candidates for future procurement as a self-protection air-to-
air missile system. This shootoff will be an operational test 
with combat scenarios conducted from an AH-64D Longbow Apache 
helicopter against unenhanced targets in clutter to determine 
which missile provides the shortest time of engagement, highest 
probability of kill, and greatest ease of operation consistent 
with the Army's mission needs statement.
    Aerostat Joint Program Office.--The Committee 
recommendation deletes $58,937,000 from the budget request for 
the joint land attack elevated netted sensor [JLENS] aerostat-
based sensor program. Consistent with the observations outlined 
in the title IV overview section of this report, the Committee 
directs that the remaining funds be devoted to participation 
and support of air directed surface-to-air missile [ADSAM] and 
air directed air-to-air missile [ADAAM] demonstrations and to 
limited scope JLENS design and development activities. The 
Committee believes that the ADSAM and ADAAM experimentation 
will allow the Defense Department to make better informed 
determinations of airborne sensor requirements, command and 
control architecture needs, and the balance between aircraft 
and aerostat based sensors, as well as associated basing and 
survivability issues.
    Force XXI Warfighting Rapid Acquisition Program [WRAP].--
The Committee provides $69,528,000, a decrease of $30,000,000 
to the budget request. The Committee acknowledges that the 
brigade and division advanced warfighting experiments conducted 
in 1997 yielded a number of concepts which merited investment 
or acceleration. However, the Army does not have exercises of 
this scale planned in the remainder of 1998 or 1999. Further, 
many of the candidates for the fiscal year 1998 funds are 
projects which did not make the priority list earlier in the 
WRAP process.
    The Committee understands that the Army has a requirement 
for a drop zone capable, multiutility, commercially available 
vehicle for the movement of supplies and injured personnel in 
rugged terrain. The Committee recommends that the Army give 
consideration to the military GATOR in meeting this mission 
requirement under the competitive fiscal year 1999 Warfighting 
Rapid Acquisition Program.
    Landmine alternatives.--The Committee understands that the 
Department has launched a search for alternatives to 
antipersonnel landmines, including those that are used in mixed 
mine systems, with the goal of fielding such alternatives as 
soon as practicable. The Committee supports this effort and 
includes $12,500,000 for fiscal year 1999 for activities 
relating to the identification, adaptation, modification, 
research, and development of existing and new tactics, 
technologies, and operational concepts that (1) would produce a 
comparable combat capability to antipersonnel landmines, 
including those in mixed mine systems, and (2) are compliant 
with the Convention on the Prohibition of the Use, Stockpiling, 
Production and Transfer of Antipersonnel Mines and on Their 
Destruction. The Secretary of Defense shall submit a report to 
the congressional defense committees by March 1, 1999, 
describing progress made in identifying and fielding such 
alternative, and future plans in this effort.
    Management headquarters.--The Committee recommends 
$22,683,000 for management headquarters, of which $18,000,000 
shall be only for the Akamai project. Within this amount, not 
less than $4,000,000 shall be for hyperspectral diagnostic 
imaging and $2,000,000 shall be for the remote access to 
medical specialists program.
    Maintenance and repair [RPM] RDT&E.--The Committee 
recommends $80,233,000, an increase of $31,000,000 to the 
budget request. The Committee is very concerned about the level 
of maintenance and repair activities funded by the Army budget 
request for laboratories and major range and test facility 
bases [MRTFB's]. The Committee directs that $1,000,000 of the 
additional funds be used only for Cold Regions Research 
Laboratory maintenance and repairs. The Committee directs that 
$30,000,000 be used for activities such as heating and cooling 
system, road, water system, and roof maintenance and repair. Of 
this amount, $20,800,000 is provided for White Sands Missile 
Range and $9,200,000 is provided for Aberdeen Proving Ground 
and Dugway Proving Ground.

                           OTHER ADJUSTMENTS

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are not supported 
by firm requirements or out-year development and procurement 
funds; are premature until related, preliminary efforts are 
completed, and the results evaluated; are lower priority 
relative to other projects; are duplicative of other DOD 
projects; are increasing without a firm justification and out-
year transition commitments; or can be deferred without 
adversely affecting related program developments.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Defense research sciences.......................................         137,399         129,463          -7,936
    Scientific problems with military applications growth.......  ..............          -7,936          -7,936
University and industry research centers........................          48,459          45,138          -3,321
    Program growth reduction....................................  ..............          -3,321          -3,321
Sensors and electronic survivability............................          18,738          16,895          -1,843
    Data Base and Software Agent Program........................  ..............          -1,843          -1,843
Aviation technology.............................................          29,746          25,160          -4,586
    Air mobility concept........................................  ..............          -1,923          -1,923
    Precision kill and nonlethal weapon integration and manned/                                                 
     unmanned system technology.................................  ..............          -2,663          -2,663
Modeling and simulation technology..............................          27,981          24,153          -3,828
    Army after next applied research............................  ..............          -4,450          -4,450
    Standards development and testing...........................  ..............          -1,600          -1,600
    Advanced concepts and technology............................  ..............          -1,778          -1,778
    Photonics research \1\......................................  ..............          +4,000          +4,000
Ballistics technology...........................................          31,115          27,475          -3,640
    Electric gun technology.....................................  ..............          -3,640          -3,640
Dual Use Applications Program...................................          20,000          10,000         -10,000
    Program reduction...........................................  ..............         -10,000         -10,000
Army data distribution system...................................          17,281           6,300         -10,981
    Near-term digital radio.....................................  ..............         -10,981         -10,981
Comanche........................................................         367,823         349,208         -18,615
    Engineering changes.........................................  ..............          -8,615          -8,615
    Flight test program delays..................................  ..............         -10,000         -10,000
Follow-on to TOW................................................          48,106           8,106         -40,000
    Program reduction based on Army restructure.................  ..............         -35,000         -35,000
    Counteractive protection transfer...........................  ..............          -5,000          -5,000
Combat feeding, clothing, and equipment.........................          62,218          53,568          -8,650
    Contract modifications and engineering change proposals.....  ..............          -4,000          -4,000
    Land warrior product improvement............................  ..............          -4,650          -4,650
Weapons and munitions--eng dev..................................          37,725          35,725          -2,000
    Mortar fire control system contract savings.................  ..............          -2,000          -2,000
DUAP commercial operations and support savings..................          33,600          23,600         -10,000
    Program reduction...........................................  ..............         -10,000         -10,000
Army Kwajalein Atoll............................................         142,710         122,710         -20,000
    Program reduction...........................................  ..............         -20,000         -20,000
Concepts Experimentation Program................................          17,441          10,541          -6,900
    Program reduction for undefined experiments.................  ..............          -6,900          -6,900
Aerostat Joint Project Office...................................         103,937          45,000         -58,937
    Program reduction...........................................  ..............         -58,937         -58,937
Force Twenty-one [XXI], Warfighting Rapid Acquisition Program...          99,528          69,528         -30,000
    Program reduction...........................................  ..............         -30,000         -30,000
NATO Joint STARS................................................           6,405  ..............          -6,405
    Program reduction...........................................  ..............          -6,405          -6,405
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project funding increases''    
  heading of this report section.                                                                               

    Program and project funding increases.--The Committee 
recommends the addition of funds for the following projects and 
programs to reflect congressional priorities; to rectify 
shortfalls in the budget request for activities; to implement 
increases endorsed and/or requested by the Army to address 
budget shortfalls; and to effect funding transfers recommended 
by the Committee or the Army.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Combat vehicle and automotive technology........................          40,107          44,362          +4,255
    Alternative vehicle propulsion systems......................  ..............           2,500          +2,500
    Robotic and manned ground systems enhancements..............  ..............           4,500          +4,500
    Commerical automotive technology............................  ..............           2,500          +2,500
    Future infantry and combat system \2\.......................  ..............          -5,245          -5,245
Weapons and munitions technology................................          29,489          31,489          +2,000
    Future direct support weapon system.........................  ..............           2,000          +2,000
Electronics and electronic devices..............................          22,329          25,479          +3,150
    Improved high rate alkaline cell............................  ..............             700            +700
    Low cost reuseable alkaline manganese-zinc..................  ..............             900            +900
    Rechargeable coin cells.....................................  ..............             650            +650
    Coin cell zinc air..........................................  ..............             900            +900
Human factors engineering technology............................          13,369          18,169          +4,800
    MedTeams....................................................  ..............           4,800          +4,800
Command, control, communications technology.....................          19,746          22,546          +2,800
    Multimedia tactical adapter.................................  ..............           2,800          +2,800
Military engineering technology.................................          37,488          42,188          +4,700
    Cold regions research and development.......................  ..............           1,700          +1,700
    University partnering for operational support...............  ..............           3,000          +3,000
Medical technology..............................................          67,255          70,255          +3,000
    Life support for trauma and transport [LSTAT]...............  ..............           3,000          +3,000
Medical advanced technology.....................................          11,012          30,012         +19,000
    Nutrition research \1\......................................  ..............           2,000          +2,000
    Volume angiocat.............................................  ..............           4,000          +4,000
    WRAMC prostate research.....................................  ..............           2,000          +2,000
    Intravenous membrane oxygenator.............................  ..............           1,000          +1,000
    Disaster relief and emergency medical services [DREAMS].....  ..............          10,000         +10,000
Aviation advanced technology....................................          30,048          51,048         +21,000
    Starstreak missile testing..................................  ..............          21,000         +21,000
Landmine warfare and barrier advanced technology................          21,944          25,844          +3,900
    Ground penetrating radar....................................  ..............           3,900          +3,900
Joint Service Small Arms Program................................           5,173           8,673          +3,500
    Objective crew served weapon................................  ..............           3,500          +3,500
Night vision advanced technology................................          23,960          26,460          +2,500
    Low cost millimeter wave wire detection system..............  ..............           2,500          +2,500
Military engineering advanced technology........................          13,564          16,264          +2,700
    Full-scale prototyping of rapidly installed breakwaters and                                                 
     application of soil stabilization technology to coastal                                                    
     regions....................................................  ..............           2,700          +2,700
Armament enhancement initiative.................................          26,526          28,526          +2,000
    TERM-KE.....................................................  ..............          10,000         +10,000
    M829E3 development \2\......................................  ..............          -8,000          -8,000
Aviation--adv dev...............................................           7,487          11,487          +4,000
    3-D cockpit audio and helmet mounted displays...............  ..............           4,000          +4,000
Logistics and engineer equipment--adv dev.......................          17,478          19,978          +2,500
    Reverse osmosis water purification units....................  ..............           2,500          +2,500
Aircraft avionics...............................................           7,878          17,878         +10,000
    Army airborne command and control system [A\2\C\2\S]........  ..............          10,000         +10,000
Family of heavy tactical vehicles...............................  ..............           1,250          +1,250
    HETS highway use trailer....................................  ..............           1,250          +1,250
Engineer mobility equipment development.........................          63,069          66,569          +3,500
    DSESTS......................................................  ..............           3,500          +3,500
Aviation--eng dev...............................................           6,599          11,599          +5,000
    Retinal display technology..................................  ..............           5,000          +5,000
Landmine warfare/barrier--eng dev...............................          46,905          46,905  ..............
    Landmine alternatives.......................................          12,500         +12,500  ..............
    NSD-A program delays \2\....................................         -12,500         -12,500  ..............
Sense and destroy armament missile--eng dev.....................          20,813          33,813         +13,000
    SADARM product improvement acceleration.....................  ..............          13,000         +13,000
Threat simulator development....................................          11,935          13,935          +2,000
    Jamming simulator for Army Battle Laboratory................  ..............           2,000          +2,000
Munitions standardization, effectiveness, and safety............           8,497          12,497          +4,000
    Blast chamber:                                                                                              
        Lexington Blue Grass Army Depot.........................  ..............           2,000          +2,000
        Anniston Army Depot.....................................  ..............           2,000          +2,000
Pollution prevention............................................           8,694          10,694          +2,000
    Joint group on acquisition pollution prevention.............  ..............           2,000          +2,000
Environmental compliance........................................          44,116          51,116          +7,000
    Climate change fuel cell....................................  ..............           5,000          +5,000
    Low emissions gas boiler demo...............................  ..............           2,000          +2,000
Maintenance and repair (RPM)--RDT&E.............................          49,233          80,233         +31,000
    Aberdeen Proving Ground, Dugway Proving Ground, White Sands                                                 
     Missile Range..............................................  ..............          30,000         +30,000
    Cold Regions Research Laboratory............................  ..............           1,000          +1,000
Management headquarters (research and development)..............           4,683          22,683         +18,000
    Akamai......................................................  ..............          18,000         +18,000
Aircraft Engine Component Improvement Program...................           2,948           6,948          +4,000
    Aircraft fuel delivery technology...........................  ..............           2,000          +2,000
    FADEC technology on TH-67...................................  ..............           2,000          +2,000
Digitization....................................................          45,007          48,007          +3,000
    Digitization research at Fort Hood..........................  ..............           3,000          +3,000
Digital information technology test bed.........................  ..............           6,600          +6,600
End item industrial preparedness activities.....................          30,511          37,861          +7,350
    Munitions manufacturing technology..........................  ..............           5,000          +5,000
    Instrumented factory for gears [INFAC]......................  ..............           4,000          +4,000
    Undefined projects..........................................  ..............          -1,650          -1,650
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Authorization adjustments'' heading of this
  report section.                                                                                               
\2\ Program reduction as described under the heading ``Program reductions and deferrals.''                      

    Program transfers.--The Committee recommends the following 
funding adjustments to effect funding transfers requested by 
the Department of Defense, to align programs in the proper 
development category, to better link specific development 
projects with related efforts, or to restore funds to the 
traditional funding line in the budget.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Tactical unmanned aerial vehicles...............................          75,636          97,828         +22,192
    Transfer....................................................  ..............          37,192         +37,192
    Marinization................................................  ..............         -15,000         -15,000
Advanced technology.............................................  ..............           7,500          +7,500
    Transfer....................................................  ..............           7,500          +7,500
CIG/SS..........................................................  ..............           8,912          +8,912
    Transfer....................................................  ..............           8,912          +8,912
----------------------------------------------------------------------------------------------------------------

    Authorization adjustments.--The Committee recommends the 
following adjustments based on the recommendations reported in 
the Senate bill authorizing programs and activities of the 
Department of Defense [DOD] for fiscal year 1999:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                 1999 budget      Committee         budget    
                                                                    estimate      recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Tractor rose...................................................           6,000  ...............          -6,000
    Program reduction..........................................  ..............          -6,000           -6,000
Materials technology...........................................          10,137          15,137           +5,000
    Hardened Material Program..................................  ..............           5,000           +5,000
Missile technology.............................................          25,180          30,680           +5,500
    Acoustic detection.........................................  ..............           1,500           +1,500
    Scramjet missile technology................................  ..............           3,000           +3,000
    Counteractive protection \1\...............................  ..............           5,000           +5,000
    Compact kinetic energy missile \2\.........................  ..............          -4,000           -4,000
Environmental quality technology...............................          13,842          51,742          +37,900
    National Defense Center for Environmental Excellence.......  ..............          20,000          +20,000
    Plasma energy pyrolysis system [PEPS]......................  ..............           5,000           +5,000
    Small Business Development Center \1\......................  ..............           5,400           +5,400
    Agriculturally based bioremediation \1\....................  ..............           4,000           +4,000
    Radford environmental development and management system \1\  ..............           3,500           +3,500
Weapons and munitions advanced technology......................          24,555          29,055           +4,500
    Precision guided mortar munition...........................  ..............           4,500           +4,500
Combat vehicle and automotive advanced technology..............          54,435          49,535           -4,900
    Aluminum metal matrix......................................  ..............           6,500           +6,500
    Heavy truck propulsion systems \1\.........................  ..............           3,600           +3,600
    Geisel engine testing \1\..................................  ..............           2,000           +2,000
    Program reduction \2\......................................  ..............         -17,000          -17,000
Missile and rocket advanced technology.........................          86,096          92,096           +6,000
    Future missile technology integration......................  ..............           6,000           +6,000
Army missile defense systems integration (dem/val..............          12,240          38,240          +26,000
    Space and Missile Defense Battle Laboratory................  ..............          11,000          +11,000
    Tactical high-energy laser [THEL]..........................  ..............          15,000          +15,000
NATO research and development..................................          11,161           9,161           -2,000
    Program reduction..........................................  ..............          -2,000           -2,000
EW development.................................................          85,989          90,589           +4,600
    ATIRCM/CMWS integration....................................  ..............           8,600           +8,600
    Ground-based common sensor [GBCS] \2\......................  ..............          -4,000           -4,000
Radar development..............................................           2,786           6,786           +4,000
    Passive adjunct sensor capability..........................  ..............           4,000           +4,000
Firefinder.....................................................          19,822          20,722             +900
    AN/TPQ Firefinder radar upgrade--accelerate software.......  ..............             900             +900
Major T&E investment...........................................          40,284          32,142           -8,142
    Program reduction..........................................  ..............          -1,000           -1,000
    USAKA (Kwalalein Atoll) \2\................................  ..............          -7,142           -7,142
Army technical test instrumentation and targets................          33,439          40,439           +7,000
    Testing instrumentation and targets (WSMR).................  ..............           7,000           +7,000
Survivability/lethality analysis...............................          30,498          34,498           +4,000
    Information operations warfare vulnerability assessment....  ..............           4,000           +4,000
DOD high-energy laser test facility............................          15,022          23,022           +8,000
    Solid state laser..........................................  ..............           8,000           +8,000
Advanced field artillery tactical data system..................          35,111          40,381           +5,270
    Airspace deconfliction and technical fire support [AFATDS]                                                  
     enhancement...............................................  ..............          12,500          +12,500
    AFATDS 2000 software development \2\.......................  ..............          -7,230           -7,230
Combat vehicle improvement programs............................          94,756         108,256          +13,500
    M-1 large area flat panel displays.........................  ..............           7,000           +7,000
    DSESTS \1\.................................................  ..............           6,500           +6,500
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project increases'' heading of 
  the report section.                                                                                           
\2\ Program reduction recommended as described under the heading ``Program reductions and deferrals.''          

                     COMMITTEE RECOMMENDED PROGRAM

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
        RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, ARMY                                                       
                                                                                                                
BASIC RESEARCH:                                                                                                 
    IN-HOUSE LABORATORY INDEPENDENT RESEARCH....................          14,902          14,902  ..............
    DEFENSE RESEARCH SCIENCES...................................         137,399         129,463          -7,936
    UNIVERSITY AND INDUSTRY RESEARCH CENTERS....................          48,459          45,138          -3,321
                                                                 -----------------------------------------------
      TOTAL, BASIC RESEARCH.....................................         200,760         189,503         -11,257
                                                                 ===============================================
APPLIED RESEARCH:                                                                                               
    TRACTOR ROSE................................................           6,000  ..............          -6,000
    MATERIALS TECHNOLOGY........................................          10,137          15,137          +5,000
    SENSORS AND ELECTRONIC SURVIVABILITY........................          18,738          16,895          -1,843
    TRACTOR HIP.................................................          11,685          11,685  ..............
    AVIATION TECHNOLOGY.........................................          29,746          25,160          -4,586
    EW TECHNOLOGY...............................................          16,249          16,249  ..............
    MISSILE TECHNOLOGY..........................................          25,180          30,680          +5,500
    MODELING AND SIMULATION TECHNOLOGY..........................          27,981          24,153          -3,828
    COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY....................          40,107          44,362          +4,255
    BALLISTICS TECHNOLOGY.......................................          31,115          27,475          -3,640
    CHEMICAL, SMOKE AND EQUIPMENT DEFEATING TECHNOLOGY..........           5,116           5,116  ..............
    JOINT SERVICE SMALL ARMS PROGRAM............................           5,229           5,229  ..............
    WEAPONS AND MUNITIONS TECHNOLOGY............................          29,489          31,489          +2,000
    ELECTRONICS AND ELECTRONIC DEVICES..........................          22,329          25,479          +3,150
    NIGHT VISION TECHNOLOGY.....................................          19,157          19,157  ..............
    COUNTERMINE SYSTEMS.........................................          10,715          10,715  ..............
    HUMAN FACTORS ENGINEERING TECHNOLOGY........................          13,369          18,169          +4,800
    ENVIRONMENTAL QUALITY TECHNOLOGY............................          13,842          51,742         +37,900
    COMMAND, CONTROL, COMMUNICATIONS TECHNOLOGY.................          19,746          22,546          +2,800
    COMPUTER AND SOFTWARE TECHNOLOGY............................           2,185           2,185  ..............
    MILITARY ENGINEERING TECHNOLOGY.............................          37,488          42,188          +4,700
    MANPOWER/PERSONNEL/TRAINING TECHNOLOGY......................           8,602           8,602  ..............
    WARFIGHTER TECHNOLOGY.......................................          18,661          18,661  ..............
    MEDICAL TECHNOLOGY..........................................          67,255          70,255          +3,000
    ARMY ARTIFICIAL INTELLIGENCE TECHNOLOGY.....................           1,164           1,164  ..............
    DUAL USE APPLICATIONS PROGRAM...............................          20,000          10,000         -10,000
                                                                 -----------------------------------------------
      TOTAL, APPLIED RESEARCH...................................         511,285         554,493         +43,208
                                                                 ===============================================
ADVANCED TECHNOLOGY DEVELOPMENT:                                                                                
    WARFIGHTER ADVANCED TECHNOLOGY..............................          32,969          32,969  ..............
    MEDICAL ADVANCED TECHNOLOGY.................................          11,012          30,012         +19,000
    AVIATION ADVANCED TECHNOLOGY................................          30,048          51,048         +21,000
    WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY...................          24,555          29,055          +4,500
    COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHNOLOGY...........          54,435          49,535          -4,900
    COMMAND, CONTROL, COMMUNICATIONS ADVANCED TECHNOL-  OGY.....          20,109          20,109  ..............
    MANPOWER, PERSONNEL AND TRAINING ADVANCED TECHNOLOGY........           3,021           3,021  ..............
    TRACTOR HIKE................................................           9,873           9,873  ..............
    TRACTOR DIRT................................................              57              57  ..............
    TRACTOR RED.................................................           4,590           4,590  ..............
    TRACTOR ROSE................................................           2,016           2,016  ..............
    MILITARY HIV RESEARCH.......................................           5,710           5,710  ..............
    GLOBAL SURVEILLANCE/AIR DEFENSE/PRECISION STRIKE TECH.......           9,973           9,973  ..............
    EW TECHNOLOGY...............................................          11,508          11,508  ..............
    MISSILE AND ROCKET ADVANCED TECHNOLOGY......................          86,096          92,096          +6,000
    TRACTOR CAGE................................................           4,408           4,408  ..............
    LANDMINE WARFARE AND BARRIER ADVANCED TECHNOLOGY............          21,944          25,844          +3,900
    JOINT SERVICE SMALL ARMS PROGRAM............................           5,173           8,673          +3,500
    LINE-OF-SIGHT TECHNOLOGY DEMONSTRATION......................          20,099          20,099  ..............
    NIGHT VISION ADVANCED TECHNOLOGY............................          23,960          26,460          +2,500
    MILITARY ENGINEERING ADVANCED TECHNOLOGY....................          13,564          16,264          +2,700
    ADVANCED TACTICAL COMPUTER SCIENCE AND SENSOR TECH..........          18,456          18,456  ..............
    STRATEGIC ENVIRONMENTAL RESEARCH AND DEVELOPMENT PROGRAM/                                                   
     ENVIRONMENTAL SECURITY TECHNOLOGY..........................          54,419          54,419  ..............
    JOINT TACTICAL RADIO........................................          15,600          15,600  ..............
                                                                 -----------------------------------------------
      TOTAL, ADVANCED TECHNOLOGY DEVELOPMENT....................         483,595         541,795         +58,200
                                                                 ===============================================
DEMONSTRATION AND VALIDATION:                                                                                   
    ARMY MISSILE DEFENSE SYSTEMS INTEGRATION....................          12,240          38,240         +26,000
    LANDMINE WARFARE AND BARRIER--ADV DEV.......................           6,778           6,778  ..............
    ARMAMENT ENHANCEMENT INITIATIVE.............................          26,526          28,526          +2,000
    ARTILLERY PROPELLANT DEVELOPMENT............................  ..............  ..............  ..............
    ARMORED SYSTEM MODERNIZATION--ADV DEV.......................  ..............  ..............  ..............
    ADVANCED TANK ARMAMENT SYSTEM (ATAS)........................           8,928           8,928  ..............
    ARMY DATA DISTRIBUTION SYSTEM...............................          17,281           6,300         -10,981
    SOLDIER SUPPORT AND SURVIVABILITY...........................           7,581           7,581  ..............
    TACTICAL ELECTRONIC SURVEILLANCE SYSTEM--ADV DEV............  ..............  ..............  ..............
    NIGHT VISION SYSTEMS ADVANCED DEVELOPMENT...................           2,681           2,681  ..............
    NATO RESEARCH AND DEVELOPMENT...............................          11,161           9,161          -2,000
    AVIATION--ADV DEV...........................................           7,487          11,487          +4,000
    LOGISTICS AND ENGINEER EQUIPMENT--ADV DEV...................          17,478          19,978          +2,500
    COMBAT SERVICE SUPPORT CONTROL SYSTEM EVALUATION............          14,353          14,353  ..............
    MEDICAL SYSTEMS--ADV DEV....................................          11,414          11,414  ..............
    TRACTOR CAGE (DEM/VAL)......................................             966             966  ..............
    ARTILLERY SYSTEMS--DEM/VAL..................................         313,166         313,166  ..............
    SCAMP BLOCK II DEM/VAL......................................           7,969           7,969  ..............
                                                                 -----------------------------------------------
      TOTAL, DEMONSTRATION AND VALIDATION.......................         466,009         487,528         +21,519
                                                                 ===============================================
ENGINEERING AND MANUFACTURING DEVELOPMENT:                                                                      
    AIRCRAFT AVIONICS...........................................           7,878          17,878         +10,000
    COMANCHE....................................................         367,823         349,208         -18,615
    EW DEVELOPMENT..............................................          85,989          90,589          +4,600
    ALL SOURCE ANALYSIS SYSTEM..................................          28,081          28,081  ..............
    FOLLOW-ON TO TOW............................................          48,106           8,106         -40,000
    TRACTOR CAGE................................................           1,788           1,788  ..............
    MEDIUM TACTICAL VEHICLES....................................  ..............  ..............  ..............
    SMOKE, OBSCURANT AND TARGET DEFEATING SYS-ENG DEV...........             706             706  ..............
    JAVELIN.....................................................           5,277           5,277  ..............
    LANDMINE WARFARE............................................          23,189          23,189  ..............
    FAMILY OF HEAVY TACTICAL VEHICLES...........................  ..............           1,250          +1,250
    AIR TRAFFIC CONTROL.........................................           1,737           1,737  ..............
    ADVANCED COMMAND AND CONTROL VEHICLE (AC\2\V)...............  ..............  ..............  ..............
    TACTICAL UNMANNED GROUND VEHICLE (TUGV).....................           2,468           2,468  ..............
    ARMORED SYSTEMS MODERNIZATION (ASM)--ENG. DEV...............           4,500           4,500  ..............
    ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....................          63,069          66,569          +3,500
    NIGHT VISION SYSTEMS--ENG DEV...............................          21,311          21,311  ..............
    COMBAT FEEDING, CLOTHING, AND EQUIPMENT.....................          62,218          53,568          -8,650
    NON-SYSTEM TRAINING DEVICES--ENG DEV........................          64,035          64,035  ..............
    TERRAIN INFORMATION--ENG DEV................................           2,999           2,999  ..............
    INTEGRATED METEOROLOGICAL SUPPORT SYSTEM....................           1,790           1,790  ..............
    INTEGRATED BROADCAST SERVICE................................           4,447           4,447  ..............
    AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE...............           6,476           6,476  ..............
    AUTOMATIC TEST EQUIPMENT DEVELOPMENT........................           7,030           7,030  ..............
    DISTRIBUTIVE INTERACTIVE SIMULATIONS (DIS)..................           2,766           2,766  ..............
    TACTICAL EXPLOITATION OF NATIONAL CAPABILITIES..............          44,674          44,674  ..............
    BRILLIANT ANTI-ARMOR SUBMUNITION (BAT)......................         134,858         134,858  ..............
    JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM...............           5,503           5,503  ..............
    POSITIONING SYSTEMS DEVELOPMENT (SPACE).....................             379             379  ..............
    COMBINED ARMS TACTICAL TRAINER (CATT) CORE..................           7,533           7,533  ..............
    AVIATION--ENG DEV...........................................           6,599          11,599          +5,000
    WEAPONS AND MUNITIONS--ENG DEV..............................          37,725          35,725          -2,000
    LOGISTICS AND ENGINEER EQUIPMENT--ENG DEV...................          26,002          26,002  ..............
    COMMAND, CONTROL, COMMUNICATIONS SYSTEMS....................          16,404          16,404  ..............
    MEDICAL MATERIEL/MEDICAL BIOLOGICAL DEFENSE EQUIPMENT.......           5,338           5,338  ..............
    LANDMINE WARFARE/BARRIER--ENG DEV...........................          46,905          46,905  ..............
    SENSE AND DESTROY ARMAMENT MISSILE--ENG DEV.................          20,813          33,813         +13,000
    COMBAT IDENTIFICATION.......................................          13,471          13,471  ..............
    ARMY TACTICAL COMMAND AND CONTROL HARDWARE AND SOFTWARE.....          32,929          32,929  ..............
    RADAR DEVELOPMENT...........................................           2,786           6,786          +4,000
    FIREFINDER..................................................          19,822          20,722            +900
    DUAP COMMERCIAL OPERATIONS AND SUPPORT SAVINGS..............          33,600          23,600         -10,000
    ARTILLERY SYSTEMS--EMD......................................             100             100  ..............
                                                                 -----------------------------------------------
      TOTAL, ENGINEERING AND MANUFACTURING DEVELOPMENT..........       1,269,124       1,232,109         -37,015
                                                                 ===============================================
RDT&E MANAGEMENT SUPPORT:                                                                                       
    THREAT SIMULATOR DEVELOPMENT................................          11,935          13,935          +2,000
    TARGET SYSTEMS DEVELOPMENT..................................          13,127          13,127  ..............
    MAJOR T&E INVESTMENT........................................          40,284          32,142          -8,142
    RAND ARROYO CENTER..........................................          16,718          16,718  ..............
    ARMY KWAJALEIN ATOLL........................................         142,710         122,710         -20,000
    CONCEPTS EXPERIMENTATION PROGRAM............................          17,441          10,541          -6,900
    ARMY TEST RANGES AND FACILITIES.............................         119,553         119,553  ..............
    ARMY TECHNICAL TEST INSTRUMENTATION AND TARGETS.............          33,439          40,439          +7,000
    SURVIVABILITY/LETHALITY ANALYSIS............................          30,498          34,498          +4,000
    DOD HIGH ENERGY LASER TEST FACILITY.........................          15,022          23,022          +8,000
    AIRCRAFT CERTIFICATION......................................           2,924           2,924  ..............
    METEOROLOGICAL SUPPORT TO RDT&E ACTIVITIES..................           6,691           6,691  ..............
    MATERIEL SYSTEMS ANALYSIS...................................           9,711           9,711  ..............
    EXPLOITATION OF FOREIGN ITEMS...............................           4,031           4,031  ..............
    SUPPORT OF OPERATIONAL TESTING..............................          66,320          66,320  ..............
    ARMY EVALUATION CENTER......................................          25,526          25,526  ..............
    PROGRAMWIDE ACTIVITIES......................................          64,588          64,588  ..............
    TECHNICAL INFORMATION ACTIVITIES............................          16,251          16,251  ..............
    MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY.........           8,497          12,497          +4,000
    ENVIRONMENTAL CONSERVATION..................................           3,195           3,195  ..............
    POLLUTION PREVENTION........................................           8,694          10,694          +2,000
    ENVIRONMENTAL COMPLIANCE....................................          44,116          51,116          +7,000
    MINOR CONSTRUCTION (RPM)--RDT&E.............................           4,205           4,205  ..............
    MAINTENANCE AND REPAIR (RPM)--RDT&E.........................          49,233          80,233         +31,000
    REAL PROPERTY SERVICES (RPS)--RDT&E.........................          87,172          87,172  ..............
    BASE OPERATIONS--RDT&E......................................         230,029         230,029  ..............
    MANAGEMENT HEADQUARTERS (RESEARCH AND DEVELOPMENT)..........           4,683          22,683         +18,000
                                                                 -----------------------------------------------
      TOTAL, RDT&E MANAGEMENT SUPPORT...........................       1,076,593       1,124,551         +47,958
                                                                 ===============================================
OPERATIONAL SYSTEMS DEVELOPMENT:                                                                                
    MLRS PRODUCT IMPROVEMENT PROGRAM............................          20,244          20,244  ..............
    AEROSTAT JOINT PROJECT OFFICE...............................         103,937          45,000         -58,937
    ADV FIELD ARTILLERY TACTICAL DATA SYSTEM....................          35,111          40,381          +5,270
    COMBAT VEHICLE IMPROVEMENT PROGRAMS.........................          94,756         108,256         +13,500
    MANEUVER CONTROL SYSTEM.....................................          28,923          28,923  ..............
    AIRCRAFT MODIFICATIONS/PRODUCT IMPROVEMENT PROGRAMS.........          26,681          26,681  ..............
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............           2,948           6,948          +4,000
    DIGITIZATION................................................          45,007          48,007          +3,000
    FORCE XXI BATTLE COMMAND, BRIGADE AND BELOW (FBCB2).........          52,469          52,469  ..............
    FORCE TWENTY-ONE (XXI), WARFIGHTING RAPID ACQUISITION.......          99,528          69,528         -30,000
    MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT PROGRAM.............          11,252          11,252  ..............
    OTHER MISSILE PRODUCT IMPROVEMENT PROGRAMS..................           1,248           1,248  ..............
    TRACTOR RUT.................................................  ..............  ..............  ..............
    TRACTOR CARD................................................           3,993           3,993  ..............
    JOINT TACTICAL COMMUNICATIONS PROGRAM (TRI-TAC).............          35,941          35,941  ..............
    JOINT TACTICAL GROUND SYSTEM................................          12,229          12,229  ..............
    SPECIAL ARMY PROGRAM........................................           6,537          12,037          +5,500
    INFORMATION SYSTEMS SECURITY PROGRAM........................           7,433           7,433  ..............
    SATCOM GROUND ENVIRONMENT (SPACE)...........................          53,897          53,897  ..............
    WWMCCS/GLOBAL COMMAND AND CONTROL SYSTEM....................          17,543          17,543  ..............
    DIGITAL INFORMATION TECHNOLOGY TEST BED.....................  ..............           6,600          +6,600
    TRAFFIC CONTROL, APPROACH AND LANDING SYSTEM................  ..............  ..............  ..............
    SECURITY AND INVESTIGATIVE ACTIVITIES.......................             950             950  ..............
    TACTICAL UNMANNED AERIAL VEHICLES...........................          75,636          97,828         +22,192
    ADVANCED TECHNOLOGY.........................................  ..............           7,500          +7,500
    COMMON IMAGERY GROUND/SURFACE SYS...........................  ..............           8,912          +8,912
    END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.................          30,511          37,861          +7,350
    COUNTER MRL--TSPO...........................................  ..............  ..............  ..............
    NATO JOINT STARS............................................           6,405  ..............          -6,405
    STRIKER.....................................................  ..............  ..............  ..............
    MORTAR FIRE CONTROL.........................................  ..............  ..............  ..............
    RADIO FREQUENCY.............................................  ..............  ..............  ..............
    LIGHTWEIGHT LASER DESIGNATOR/RANGE FINDER...................  ..............  ..............  ..............
    COMBAT SYNTHETIC TRAINING ASSESSMENT RANGE..................  ..............  ..............  ..............
    ARMY AIRBORNE COMMAND AND CONTROL SYSTEM....................  ..............  ..............  ..............
    ECONOMIC ASSUMPTIONS........................................  ..............  ..............  ..............
                                                                 -----------------------------------------------
      TOTAL, OPERATIONAL SYSTEMS DEVELOPEMENT...................         773,179         761,661         -11,518
                                                                 ===============================================
      TOTAL, RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, ARMY..       4,780,545       4,891,640        +111,095
----------------------------------------------------------------------------------------------------------------

           Research, Development, Test, and Evaluation, Navy

Appropriations, 1998....................................  $8,115,686,000
Budget estimate, 1999...................................   8,108,923,000
Committee recommendation................................   8,215,519,000

    The Committee recommends an appropriation of $8,215,519,000 
for the Navy's research, development, test, and evaluation 
programs, an increase of $106,596,000 to the budget request.
    The budget activities and programs funded under this 
appropriation are discussed below.

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Defense research sciences.--The Committee directs that 
$500,000 within funds made available for this program shall be 
designated for continuing the Navy's cooperative marine mammal 
research program.
    Marine Corps advanced technology demonstration.--The 
Committee recommends $33,600,000 for the Sea Dragon Laboratory 
Program, an increase of $10,000,000. The Committee expects that 
the Marines will allocate $4,000,000 to provide full support 
for ongoing modeling and simulation efforts within this amount.
    Advanced technology transition.--The Committee notes that 
the SLICE advanced technology demonstration [ATD] has exceeded 
all expectations in its speed and ride quality performance. The 
Committee understands the Office of Naval Research intends to 
study additional futuristic hull form technologies using this 
program as a baseline in the coming years. As a transition to 
this next phase, the Committee recommends $10,000,000 to 
develop SLICE follow-on technology, specifically for a SLICE 
trailer ATD. This trailer will be available to support aegis 
testing to be conducted beginning in January 2000.
    Command, control, and communications technology.--The 
Committee recommends an increase of $11,000,000 for the ONR 
surveillance program to support evaluation of technologies for 
improving naval surveillance, tracking, and targeting 
capabilities in littoral operations. The Committee supports an 
expansion of current development and test efforts using an 
elevated ground-based site for cost-effective testing of 
airborne surveillance technologies. These funds shall be 
available for sensor development work, antenna and sensor 
testing, and site enhancements in conjunction with the UHF 
electronically scanned array ATD. The program will lead to the 
initiation of the Navy's follow-on Sensor Fusion and Network 
Centric Battlefield Demonstration Program. Not less than 
$1,000,000 of this amount is available to plan and develop 
suitable systems to support emerging requirements for sensor 
integration and testing.
    Cooperative engagement capability.--The Committee continues 
to support the U.S. Navy Cooperative Engagement Capability 
[CEC] Program and believes that a space augmented CEC has the 
potential to enhance greatly the systems effectiveness of air 
and missile defense programs. The Committee also believes that 
the Navy should work with the Air Force through the SBIRS 
requirements review process to pursue the integration of the 
CEC into the SBIRS system architecture. Therefore, the 
Committee recommends an increase of $10,000,000 for CEC SBIRS 
and Milstar range extension demonstrations.
    Carrier systems development.--The Committee recommends that 
$50,000,000 for future aircraft carrier system development be 
used exclusively for CVN-77 development.
    Airborne mine countermeasures.--The Committee supports the 
Navy's recent decision to seek full and complete competition 
for the airborne mine neutralization system [AMNS] and 
associated CH-60 integration. The Committee recommends an 
additional $2,000,000 to accelerate the evaluation of 
preplanned product improvements that will provide an autonomous 
operational capability to the system selected by the Navy.
    Standard missile.--The Committee recommendation provides an 
increase of $5,000,000 for the Standard Missile Program. The 
Committee directs that the additional funds are available only 
for the Navy to modify and build at least two Standard Missile 
test assets which will be dedicated to an ADSAM demonstration. 
The remaining funds should be used by the Navy to support and 
participate in the ADSAM and ADAAM experiments proposed by the 
Committee. Additional Committee observations on this issue are 
outlined in the title IV overview section of this report.
    CVX.--The Committee recommends $74,312,000 for future 
aircraft carrier research and development, a reduction of 
$115,688,000 from the budget. The Committee understands that 
the Navy is currently restructuring its CVX program, and plans 
to use $50,000,000 to introduce new technologies into the CVN-
77. The Committee has provided $50,000,000 for this purpose. 
The Committee has also included $5,000,000 in ship preliminary 
design and feasibility studies to establish a red team to study 
a futuristic aircraft carrier concept. Under this plan, the 
team should evaluate the merits of a carrier designed for the 
JSF aircraft and assume other STOVL and rotary wing aircraft 
will perform support missions. Furthermore, a primary goal of 
the program should be to reduce the crew requirements by 50 
percent, a trend increasingly common in commercial ships.
    The Committee has also been informed that as part of CVX 
restructuring, the Navy plans to focus their initial research 
efforts on the development of the next generation nuclear 
powerplant and electrical system in order to begin construction 
of CVX in 2006. The Committee expects the Navy to use the 
remaining CVX funding to begin development of this next 
generation nuclear powerplant.
    Common integrated electric drive systems.--The Committee is 
aware that an industry team has made a substantial investment 
to develop and demonstrate a domestic electric drive, at no 
cost to the Navy, for use in the Navy's Large Scale Vehicle 
[LSV II] Program. The Committee directs the Secretary of the 
Navy to provide a report to the Committee by March 1, 1999, 
which evaluates the installation of a common integrated 
electric drive system for DD-21, CV(X) and an NSSN variant with 
both a common integrated electric drive system and a 
conventional mechanical drive system. Additionally, the study 
should include an evaluation of secondary impacts, including 
but not limited to: life cycle, logistics, logistics train, 
manning, and operation and maintenance costs.
    Terfenol-D.--The Committee directs that $3,200,000 shall be 
available only to achieve further cost reductions in the 
application of terfenol-D, the magnetostrictive, iron/terbium/
dysprosium alloy for new high performance sonar systems.
    Low signature ejection technology [LOSET].--The Committee 
is aware of the need for the development of soft launch 
capability for the shoulder launched multipurpose assault 
weapon [SMAW]. Therefore, the Committee recommends an increase 
of $4,000,000 to the Marine Corps ``Ground combat/support 
system'' account for application of low signature ejection 
technology to the SMAW system.

                           OTHER ADJUSTMENTS

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are not supported 
by firm requirements or out-year development and procurement 
funds; are premature until related, preliminary efforts are 
completed, and the results evaluated; are lower priority 
relative to other projects; are duplicative of other DOD 
projects; are increasing without a firm justification and out-
year transition commitments; or can be deferred without 
adversely affecting related program developments.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Dual Use Applications Program...................................          20,000          10,000         -10,000
    Program decrease............................................  ..............         -10,000         -10,000
Air systems and weapons advanced technology.....................          48,143          43,143          -5,000
    VECTOR......................................................  ..............          -5,000          -5,000
Carrier systems development.....................................         154,307          74,307         -80,000
    Program reduction...........................................  ..............        -130,000        -130,000
    CVN-77 technology insertion.................................  ..............          50,000         +50,000
Shipboard system component development..........................          27,725          24,725          -3,000
    Shipboard aux systems development...........................  ..............          -3,000          -3,000
S-3 weapon system improvement...................................          31,469          26,469          -5,000
    Common support aircraft.....................................  ..............          -5,000          -5,000
Navy Energy Program.............................................           5,544           3,544          -2,000
    Facilities..................................................  ..............          -2,000          -2,000
Commercial operations and support savings initiative [COSSI]....          28,500          18,500         -10,000
    COSSI.......................................................  ..............         -10,000         -10,000
Target systems development......................................          54,800          50,800          -4,000
    Subsonic subscale aerial target.............................  ..............          -4,000          -4,000
Technical information services..................................           8,513           6,013          -2,500
    Slow enterprise development.................................  ..............          -2,500          -2,500
Depot maintenance (non-IF)......................................          69,967          49,967         -20,000
    Program reduction...........................................  ..............         -20,000         -20,000
----------------------------------------------------------------------------------------------------------------

    Program and project funding increases.--The Committee 
recommends the addition or designation of funds for the 
following projects and programs to reflect congressional 
priorities; to rectify shortfalls in the budget request for 
activities; to implement increases endorsed and/or requested by 
the Navy to address budget shortfalls; and to effect funding 
transfers recommended by the Committee or the Navy.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                 1999 budget      Committee         budget    
                                                                    estimate      recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences......................................         347,945         347,945   ..............
    Marine Mammals.............................................  ..............            (500)  ..............
Aircraft technology............................................          23,229          30,729           +7,500
    Vector thrusted ducted propeller...........................  ..............           7,500           +7,500
Oceanographic and atmospheric technology.......................          56,722          57,472             +750
    PM-10......................................................  ..............             750             +750
Undersea warfare weaponry technology...........................          34,856          44,356           +9,500
    Universal ``AA'' lithium carbon monofluoride bat-  tery....  ..............             500             +500
    Computational eng research.................................  ..............           3,000           +3,000
    Undersea weaponry warfare tech.............................  ..............           3,000           +3,000
    6.25 torpedo...............................................  ..............           3,000           +3,000
Manpower, personnel, and training adv tech dev.................          21,042          23,042           +2,000
    Integrated manufacturing studies...........................  ..............           2,000           +2,000
Environmental quality and logistics advanced technology........          20,919          26,919           +6,000
    Asbestos removal...........................................  ..............           4,000           +4,000
    Visualization of technical information.....................  ..............           2,000           +2,000
Undersea warfare advanced technology...........................          56,827          60,027           +3,200
    Terfenol-D.................................................  ..............           3,200           +3,200
Advanced technology transition.................................          74,392          84,392          +10,000
    SLICE trailer..............................................  ..............          10,000          +10,000
C\3\ advanced technology.......................................          22,294          29,794           +7,500
    National Technology Alliance Program.......................  ..............           7,500           +7,500
Advanced combat systems technology.............................           8,653           8,653   ..............
    Visualization architecture and technology..................  ..............          (2,000)  ..............
Surface and shallow water mine countermeasures.................          73,491          80,491           +7,000
    Remote minehunting system..................................  ..............           7,000           +7,000
Cooperative engagement.........................................         131,623         141,623          +10,000
    CEC space..................................................  ..............          10,000          +10,000
Environmental protection.......................................          59,438          61,938           +2,500
    Molten salt oxidation technology...........................  ..............           2,500           +2,500
Standard missile improvements..................................           1,320           6,320           +5,000
    Program increase...........................................  ..............           5,000           +5,000
H-1 upgrades...................................................          98,542         121,942          +23,400
    Accelerate H-1 upgrades program............................  ..............         121,942          +23,400
Airborne MCM...................................................          24,967          26,967           +2,000
    Program increase...........................................  ..............           2,000           +2,000
Air control....................................................           4,198           8,198           +4,000
    ECARS......................................................  ..............           4,000           +4,000
Submarine tactical warfare system..............................          28,573          30,573           +2,000
    Doppler radar..............................................  ..............           2,000           +2,000
Aviation improvements..........................................          64,956          68,956           +4,000
    Eddy current sensors.......................................  ..............           4,000           +4,000
Navy Science Assistance Program................................  ..............          12,000          +12,000
    LASH.......................................................  ..............          12,000          +12,000
Marine Corps ground combat/supporting arms sys-  tems..........          14,699          17,699           +3,000
    Automatic target tracker...................................  ..............           3,000           +3,000
----------------------------------------------------------------------------------------------------------------

    Authorization adjustments.--The Committee recommends the 
following adjustments based on the recommendations reported in 
the Senate bill authorizing programs and activities of the 
Department of Defense [DOD] for fiscal year 1999.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Air and surface launched weapons technology.....................          37,140          40,140          +3,000
    Rotary valved multiple combustor pulse detonation engine                                                    
     (RVMPDE)...................................................  ..............           3,000          +3,000
Ship, submarine, and logistics technology.......................          43,177          46,177          +3,000
    Stainless steel double hull.................................  ..............           3,000          +3,000
Communications, command, and control, intelligence, surveillance          65,033          68,033          +3,000
    UESA radar \1\..............................................  ..............          11,000         +11,000
    Strategic Sustainment Program reduction.....................  ..............          -8,000          -8,000
Materials, electronics, and computer technology.................          77,617          93,117         +15,500
    Thermal mgmt materials......................................  ..............           1,500          +1,500
    Advanced energy devices \1\.................................  ..............           1,000          +1,000
    Nanoscale materials and devices \1\.........................  ..............           1,000          +1,000
    Silicon carbide electronic material dev \1\.................  ..............           2,500          +2,500
    Electric drive propulsion...................................  ..............           2,000          +2,000
    Carbon/carbon heatshields...................................  ..............           2,500          +2,500
    Adv Materials Intelligent Processing Center \1\.............  ..............           5,000          +5,000
Precision strike and air defense technology.....................          58,306          54,406          -3,900
    Mobile offshore base........................................  ..............           5,000          +5,000
    Fleet advanced demo's \2\...................................  ..............          -8,900          -8,900
Surface ship and submarine HM&E advanced technol-  ogy..........          39,264          46,264          +7,000
    Composite helo hangar.......................................  ..............           5,000          +5,000
    Power electronic building blocks \1\........................  ..............           3,000          +3,000
    Advanced electronic systems.................................  ..............          -1,000          -1,000
Marine Corps advanced technology demonstration  [ATD]...........          41,931          52,931         +11,000
    Warfighting Lab.............................................  ..............          10,000         +10,000
    K-band training/test instrumentation system \1\.............  ..............           1,000          +1,000
Medical development.............................................          18,728          20,728          +2,000
    Freeze-dried blood..........................................  ..............           1,000          +1,000
    Directly transfusable cryoprotected blood prod-  ucts \1\...  ..............           1,000          +1,000
Mine and expeditionary warfare advanced technology..............          41,710          42,710          +1,000
    Advanced lightweight influence sweep system [ALISS].........  ..............           1,000          +1,000
Ship preliminary design and feasibility studies.................          42,668           8,000         -34,668
    SSGN study..................................................  ..............           1,000          +1,000
    CV feasibility studies \2\..................................  ..............         -35,688         -35,688
    CVX Red team................................................  ..............         (5,000)         (5,000)
Advanced surface machinery systems..............................          58,419          63,419          +5,000
    Intercooled recuperated gas turbine engine..................  ..............           5,000          +5,000
Marine Corps ground combat/support system.......................          37,133          50,633         +13,500
    Trajectory corrected munitions \1\..........................  ..............           7,500          +7,500
    SMAW follow-on \1\..........................................  ..............           4,000          +4,000
    Predator....................................................  ..............           2,000          +2,000
NATO research and development...................................          11,004           9,004          -2,000
    Program reduction...........................................  ..............          -2,000          -2,000
Land attack technology..........................................         110,104          92,404         -17,700
    Adv ship vertical gun.......................................  ..............         -10,000         -10,000
    Naval surface fire support integration......................  ..............          -7,700          -7,700
Joint Strike fighter [JSF]--dem/val.............................         463,402         478,402         +15,000
    Alternate Engine Program....................................  ..............          15,000         +15,000
Nonlethal weapons--dem/val......................................          22,592          35,892         +13,300
    Nonlethal...................................................  ..............          13,300         +13,300
Space and electronic warfare [SEW] architecture/engineering                                                     
 support........................................................          17,955          20,955          +3,000
    Adv comms and info tech.....................................  ..............           3,000          +3,000
Other helo development..........................................         231,120         253,120         +22,000
    SH-60 lamps \1\.............................................  ..............          15,000         +15,000
    Parametric airborne dipping sonar [PADS]....................  ..............           8,000          +8,000
    ASW and helo development CDR................................  ..............          -1,000          -1,000
EW development..................................................         128,586         138,586         +10,000
    IDECM radio frequency countermeasures system................  ..............          10,000         +10,000
Surface combatant combat system engineering.....................         132,561         134,561          +2,000
    Labs and field activities monitoring efforts................  ..............          -3,000          -3,000
    DDG 51 composite director room..............................  ..............           5,000          +5,000
SSN-688 and Trident modernization...............................          50,300          65,300         +15,000
    Multipurpose processor......................................  ..............          15,000         +15,000
New design SSN..................................................         218,816         231,816         +13,000
    Nonpropulsion electronics system............................  ..............           6,000          +6,000
    Sonar dome \1\..............................................  ..............           7,000          +7,000
Ship contract design/live fire T&E..............................         133,645         137,645          +4,000
    Smart propulsor product model...............................  ..............           4,000          +4,000
Ship self-defense--EMD..........................................         148,165         156,665          +8,500
    NULKA.......................................................  ..............           2,000          +2,000
    Infrared search and track [IRST]............................  ..............           6,500          +6,500
Medical development.............................................           4,321           5,321          +1,000
    Voice instruction device....................................  ..............           1,000          +1,000
Management, technical, and international support................          28,690          17,690         -11,000
    Program reduction...........................................  ..............         -11,000         -11,000
Test and evaluation support.....................................         260,601         245,601         -15,000
    Program reduction...........................................  ..............         -15,000         -15,000
SEW surveillance/reconnaissance support.........................          13,185          17,185          +4,000
    Global C\4\ISR visualization................................  ..............           4,000          +4,000
F/A-18 squadrons................................................         357,214         336,314         -20,900
    F/A-18 E/F tactical reconnaissance development..............  ..............         -23,400         -23,400
    Super Hornet Advanced Reconnaissance Program demonstration                                                  
     pods \1\...................................................  ..............          +2,500          +2,500
Consolidated training systems development.......................          28,390          35,390          +7,000
    Battle force tactical training..............................  ..............           7,000          +7,000
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project increases'' heading of 
  this report section.                                                                                          
\2\ Program reduction recommended as described under the heading ``Program reductions and deferrals.''          

    Program transfers.--The Committee recommends the following 
funding adjustments to effect funding transfers requested by 
the Department of Defense, to align programs in the proper 
development category, to better link specific development 
projects with related efforts, or to restore funds to the 
traditional funding line in the budget.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Maritime technology.............................................  ..............          20,000         +20,000
    Transfer....................................................  ..............          15,000         +15,000
    Program increase............................................  ..............           5,000          +5,000
Vertical takeoff landing........................................  ..............          10,000         +10,000
    Program increase............................................  ..............          10,000         +10,000
Advanced sensors................................................  ..............           8,448          +8,448
    Program increase............................................  ..............           8,448          +8,448
Common imagery ground/surface system............................  ..............           4,966          +4,966
    Program increase............................................  ..............           4,966          +4,966
----------------------------------------------------------------------------------------------------------------

                     COMMITTEE RECOMMENDED PROGRAM

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
        RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, NAVY                                                       
                                                                                                                
BASIC RESEARCH:                                                                                                 
    IN-HOUSE LABORATORY INDEPENDENT RESEARCH....................          14,734          14,734  ..............
    DEFENSE RESEARCH SCIENCES...................................         347,945         347,945  ..............
                                                                 -----------------------------------------------
      Total, BASIC RESEARCH.....................................         362,679         362,679  ..............
                                                                 ===============================================
APPLIED RESEARCH:                                                                                               
    AIR AND SURFACE LAUNCHED WEAPONS TECHNOLOGY.................          37,140          40,140          +3,000
    SHIP, SUBMARINE & LOGISTICS TECHNOLOGY......................          43,177          46,177          +3,000
    AIRCRAFT TECHNOLOGY.........................................          23,229          30,729          +7,500
    MARINE CORPS LANDING FORCE TECHNOLOGY.......................          12,132          12,132  ..............
    HISTORICALLY BLACK COLLEGES AND UNIVERSITIES................           4,699           4,699  ..............
    COMMUNICATIONS, COMMAND AND CONTROL, INTELLIGENCE...........          65,033          68,033          +3,000
    HUMAN SYSTEMS TECHNOLOGY....................................          29,722          29,722  ..............
    MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY..............          77,617          93,117         +15,500
    ELECTRONIC WARFARE TECHNOLOGY...............................          23,849          23,849  ..............
    UNDERSEA WARFARE SURVEILLANCE TECHNOLOGY....................          50,619          50,619  ..............
    MINE COUNTERMEASURES, MINING AND SPECIAL WARFARE............          45,928          45,928  ..............
    OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY....................          56,722          57,472            +750
    UNDERSEA WARFARE WEAPONRY TECHNOLOGY........................          34,856          44,356          +9,500
    DUAL USE APPLICATIONS PROGRAM...............................          20,000          10,000         -10,000
                                                                 -----------------------------------------------
      TOTAL, APPLIED RESEARCH...................................         524,723         556,973         +32,250
                                                                 ===============================================
ADVANCED TECHNOLOGY DEVELOPMENT:                                                                                
    AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY.................          48,143          43,143          -5,000
    PRECISION STRIKE AND AIR DEFENSE TECHNOLOGY.................          58,306          54,406          -3,900
    ADVANCED ELECTRONIC WARFARE TECHNOLOGY......................          17,169          17,169  ..............
    SURFACE SHIP & SUBMARINE HM&E ADVANCED TECHNOLOGY...........          39,264          46,264          +7,000
    MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD)........          41,931          52,931         +11,000
    MEDICAL DEVELOPMENT.........................................          18,728          20,728          +2,000
    MANPOWER, PERSONNEL AND TRAINING ADV TECH DEV...............          21,042          23,042          +2,000
    ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECHNOLOG......          20,919          26,919          +6,000
    UNDERSEA WARFARE ADVANCED TECHNOLOGY........................          56,827          60,027          +3,200
    MINE AND EXPEDITIONARY WARFARE ADVANCED TECHNOLOGY..........          41,710          42,710          +1,000
    ADVANCED TECHNOLOGY TRANSITION..............................          74,392          84,392         +10,000
    C3 ADVANCED TECHNOLOGY......................................          22,294          29,794          +7,500
    MARITIME TECHNOLOGY.........................................  ..............          20,000         +20,000
                                                                 -----------------------------------------------
      TOTAL, ADVANCED TECHNOLOGY DEVELOPMENT....................         460,725         521,525         +60,800
                                                                 ===============================================
DEMONSTRATION & VALIDATION:                                                                                     
    AIR/OCEAN TACTICAL APPLICATIONS.............................          28,824          28,824  ..............
    AVIATION SURVIVABILITY......................................           8,164           8,164  ..............
    ASW SYSTEMS DEVELOPMENT.....................................          20,184          20,184  ..............
    TACTICAL AIRBORNE RECONNAISSANCE............................           1,479           1,479  ..............
    ADVANCED COMBAT SYSTEMS TECHNOLOGY..........................           8,653           8,653  ..............
    SURFACE AND SHALLOW WATER MINE COUNTERMEASURES..............          73,491          80,491          +7,000
    ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT...............          68,402          68,402  ..............
    CARRIER SYSTEMS DEVELOPMENT.................................         154,307          74,307         -80,000
    SHIPBOARD SYSTEM COMPONENT DEVELOPMENT......................          27,725          24,725          -3,000
    SHIP COMBAT SURVIVABILITY...................................           7,595           7,595  ..............
    PILOT FISH..................................................         117,094         117,094  ..............
    RETRACT JUNIPER.............................................          11,055          11,055  ..............
    RADIOLOGICAL CONTROL........................................           3,600           3,600  ..............
    SURFACE ASW.................................................          11,871          11,871  ..............
    ADVANCED SUBMARINE SYSTEM DEVELOPMENT.......................          60,520          60,520  ..............
    SUBMARINE TACTICAL WARFARE SYSTEMS..........................           4,676           4,676  ..............
    SHIP CONCEPT ADVANCED DESIGN................................          14,900          14,900  ..............
    SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES...............          42,668           8,000         -34,668
    ADVANCED NUCLEAR POWER SYSTEMS..............................         118,342         118,342  ..............
    ADVANCED SURFACE MACHINERY SYSTEMS..........................          58,419          63,419          +5,000
    CHALK EAGLE.................................................         122,031         122,031  ..............
    COMBAT SYSTEM INTEGRATION...................................           9,654           9,654  ..............
    CONVENTIONAL MUNITIONS......................................          39,775          39,775  ..............
    MARINE CORPS ASSAULT VEHICLES...............................         104,822         104,822  ..............
    MARINE CORPS MINE/COUNTERMEASURES SYSTEMS--ADV DEV..........           1,958           1,958  ..............
    MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM...................          37,133          50,633         +13,500
    JOINT SERVICE EXPLOSIVE ORDNANCE DEVELOPMENT................          10,756          10,756  ..............
    COOPERATIVE ENGAGEMENT......................................         131,623         141,623         +10,000
    OCEAN ENGINEERING TECHNOLOGY DEVELOPMENT....................          15,257          15,257  ..............
    ENVIRONMENTAL PROTECTION....................................          59,438          61,938          +2,500
    NAVY ENERGY PROGRAM.........................................           4,592           4,592  ..............
    FACILITIES IMPROVEMENT......................................           1,861           1,861  ..............
    CHALK CORAL.................................................          97,552          97,552  ..............
    RETRACT MAPLE...............................................         117,186         117,186  ..............
    LINK PLUMERIA...............................................          22,123          22,123  ..............
    RETRACT ELM.................................................          11,665          11,665  ..............
    SHIP SELF DEFENSE--DEM/VAL..................................          12,337          12,337  ..............
    COMBAT SYSTEMS OCEANOGRAPHIC PERFORMANCE ASSESSMENT.........  ..............  ..............  ..............
    SPECIAL PROCESSES...........................................          81,743          81,743  ..............
    NATO RESEARCH AND DEVELOPMENT...............................          11,004           9,004          -2,000
    LAND ATTACK TECHNOLOGY......................................         110,104          92,404         -17,700
    JOINT STRIKE FIGHTER (JSF)--DEM/VAL.........................         463,402         478,402         +15,000
    NONLETHAL WEAPONS--DEM/VAL..................................          22,592          35,892         +13,300
    JOINT PRECISION APPROACH AND LANDING SYSTEMS................  ..............  ..............  ..............
    HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM (HDBTDS)........           9,827           9,827  ..............
    SPACE AND ELECTRONIC WARFARE (SEW) ARCHITECTURE/ENGINE......          17,955          20,955          +3,000
                                                                 -----------------------------------------------
      TOTAL, DEMONSTRATION & VALIDATION.........................       2,358,359       2,290,291         -68,068
                                                                 ===============================================
ENGINEERING & MANUFACTURING DEVEL:                                                                              
    TRAINING SYSTEM AIRCRAFT....................................             595             595  ..............
    OTHER HELO DEVELOPMENT......................................         231,120         253,120         +22,000
    AV-8B AIRCRAFT--ENG DEV.....................................          13,787          13,787  ..............
    STANDARDS DEVELOPMENT.......................................          51,987          51,987  ..............
    S-3 WEAPON SYSTEM IMPROVEMENT...............................          31,469          26,469          -5,000
    AIR/OCEAN EQUIPMENT ENGINEERING.............................           6,162           6,162  ..............
    P-3 MODERNIZATION PROGRAM...................................           3,046           3,046  ..............
    TACTICAL COMMAND SYSTEM.....................................          50,713          50,713  ..............
    H-1 UPGRADES................................................          98,542         121,942         +23,400
    ACOUSTIC SEARCH SENSORS.....................................          29,637          29,637  ..............
    V-22A.......................................................         355,142         355,142  ..............
    AIR CREW SYSTEMS DEVELOPMENT................................           9,454           9,454  ..............
    EW DEVELOPMENT..............................................         128,586         138,586         +10,000
    SURFACE COMBATANT COMBAT SYSTEM ENGINEERING.................         132,561         134,561          +2,000
    ARSENAL SHIP................................................  ..............  ..............  ..............
    LPD-17 CLASS SYSTEMS INTEGRATION............................           1,343           1,343  ..............
    TRI-SERVICE STANDOFF ATTACK MISSILE.........................           2,064           2,064  ..............
    VERTICAL LAUNCH ASROC.......................................  ..............  ..............  ..............
    STANDARD MISSILE IMPROVEMENTS...............................           1,320           6,320          +5,000
    AIRBORNE MCM................................................          24,967          26,967          +2,000
    SSN-688 AND TRIDENT MODERNIZATION...........................          50,300          65,300         +15,000
    AIR CONTROL.................................................           4,198           8,198          +4,000
    ENHANCED MODULAR SIGNAL PROCESSOR...........................           1,599           1,599  ..............
    SHIPBOARD AVIATION SYSTEMS..................................           8,531           8,531  ..............
    SHIP SURVIVABILITY..........................................           6,196           6,196  ..............
    COMBAT INFORMATION CENTER CONVERSION........................           4,704           4,704  ..............
    SUBMARINE COMBAT SYSTEM.....................................          11,710          11,710  ..............
    SWATH (SMALL WATERPLANE AREA TWIN HULL) OCEANOGRAPHIC.......  ..............  ..............  ..............
    NEW DESIGN SSN..............................................         218,816         231,816         +13,000
    SSN-21 DEVELOPMENTS.........................................          27,456          27,456  ..............
    SUBMARINE TACTICAL WARFARE SYSTEM...........................          28,573          30,573          +2,000
    SHIP CONTRACT DESIGN/LIVE FIRE T&E..........................         133,645         137,645          +4,000
    NAVY TACTICAL COMPUTER RESOURCES............................           8,249           8,249  ..............
    MINE DEVELOPMENT............................................              15              15  ..............
    UNGUIDED CONVENTIONAL AIR-LAUNCHED WEAPONS..................           5,183           5,183  ..............
    LIGHTWEIGHT TORPEDO DEVELOPMENT.............................           8,106           8,106  ..............
    MARINE CORPS MINE COUNTERMEASURES SYSTEMS--ENG DEV..........           3,855           3,855  ..............
    JOINT DIRECT ATTACK MUNITION................................          11,738          11,738  ..............
    JOINT SERVICE EXPLOSIVE ORDNANCE DEVELOPMENT................           7,037           7,037  ..............
    PERSONNEL, TRAINING, SIMULATION, AND HUMAN FACTORS..........           1,235           1,235  ..............
    NAVY ENERGY PROGRAM.........................................           5,544           3,544          -2,000
    BATTLE GROUP PASSIVE HORIZON EXTENSION SYSTEM...............           5,770           5,770  ..............
    JOINT STANDOFF WEAPON SYSTEMS...............................          73,022          73,022  ..............
    SHIP SELF DEFENSE--EMD......................................         148,165         156,665          +8,500
    MEDICAL DEVELOPMENT.........................................           4,321           5,321          +1,000
    NAVIGATION/ID SYSTEM........................................          42,301          42,301  ..............
    DISTRIBUTED SURVEILLANCE SYSTEM.............................          42,017          42,017  ..............
    COMMERCIAL OPERATIONS AND SUPPORT SAVINGS INITIATIVE........          28,500          18,500         -10,000
                                                                 -----------------------------------------------
      TOTAL, ENGINEERING & MANUFACTURING DEVEL..................       2,063,281       2,158,181         +94,900
                                                                 ===============================================
RDT&E MANAGEMENT SUPPORT:                                                                                       
    THREAT SIMULATOR DEVELOPMENT................................          24,400          24,400  ..............
    TARGET SYSTEMS DEVELOPMENT..................................          54,800          50,800          -4,000
    MAJOR T&E INVESTMENT........................................          17,281          17,281  ..............
    STUDIES AND ANALYSIS SUPPORT--NAVY..........................          10,132          10,132  ..............
    CENTER FOR NAVAL ANALYSES...................................          44,201          44,201  ..............
    FLEET TACTICAL DEVELOPMENT..................................           2,748           2,748  ..............
    TECHNICAL INFORMATION SERVICES..............................           8,513           6,013          -2,500
    MANAGEMENT, TECHNICAL & INTERNATIONAL SUPPORT...............          28,690          17,690         -11,000
    STRATEGIC TECHNICAL SUPPORT.................................           2,213           2,213  ..............
    RDT&E SCIENCE AND TECHNOLOGY MANAGEMENT.....................          64,455          64,455  ..............
    RDT&E INSTRUMENTATION MODERNIZATION.........................           8,530           8,530  ..............
    RDT&E SHIP AND AIRCRAFT SUPPORT.............................          57,421          57,421  ..............
    TEST AND EVALUATION SUPPORT.................................         260,601         245,601         -15,000
    OPERATIONAL TEST AND EVALUATION CAPABILITY..................           9,194           9,194  ..............
    NAVY SPACE AND ELECTRONIC WARFARE (SEW) SUPPORT.............           3,477           3,477  ..............
    SEW SURVEILLANCE/RECONAISSANCE SUPPORT......................          13,185          17,185          +4,000
    MARINE CORPS PROGRAM WIDE SUPPORT...........................           7,132           7,132  ..............
                                                                 -----------------------------------------------
      TOTAL, RDT&E MANAGEMENT SUPPORT...........................         616,973         588,473         -28,500
                                                                 ===============================================
OPERATIONAL SYSTEMS DEVELOPEMENT:                                                                               
    HARPOON MODIFICATIONS.......................................           1,965           1,965  ..............
    STRATEGIC SUB & WEAPONS SYSTEM SUPPORT......................          56,604          56,604  ..............
    SSBN SECURITY TECHNOLOGY PROGRAM............................          33,588          33,588  ..............
    SUBMARINE ACOUSTIC WARFARE DEVELOPMENT......................           8,328           8,328  ..............
    F/A-18 SQUADRONS............................................         357,214         336,314         -20,900
    E-2 SQUADRONS...............................................          47,797          47,797  ..............
    FLEET TELECOMMUNICATIONS (TACTICAL).........................          16,297          16,297  ..............
    TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER (TMPC)........          66,727          66,727  ..............
    INTEGRATED SURVEILLANCE SYSTEM..............................          19,772          19,772  ..............
    AMPHIBIOUS TACTICAL SUPPORT UNITS...........................           1,945           1,945  ..............
    CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT...................          28,390          35,390          +7,000
    ELECTRONIC WARFARE (EW) READINESS SUPPORT...................           3,716           3,716  ..............
    HARM IMPROVEMENT............................................          18,921          18,921  ..............
    TACTICAL DATA LINKS.........................................          49,757          49,757  ..............
    SURFACE ASW COMBAT SYSTEM INTEGRATION.......................           9,390           9,390  ..............
    MK-48 ADCAP.................................................          17,550          17,550  ..............
    AVIATION IMPROVEMENTS.......................................          64,956          68,956          +4,000
    NAVY SCIENCE ASSISTANCE PROGRAM.............................  ..............          12,000         +12,000
    F-14 UPGRADE................................................          12,947          12,947  ..............
    OPERATIONAL NUCLEAR POWER SYSTEMS...........................          54,183          54,183  ..............
    MARINE CORPS COMMUNICATIONS SYSTEMS.........................          50,594          50,594  ..............
    MARINE CORPS GROUND COMBAT/SUPPORTING ARMS SYSTEMS..........          14,699          17,699          +3,000
    MARINE CORPS COMBAT SERVICES SUPPORT........................           4,634           4,634  ..............
    TACTICAL AIM MISSILES.......................................          65,855          65,855  ..............
    ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM)...........           4,862           4,862  ..............
    SATELLITE COMMUNICATIONS (SPACE)............................          18,188          18,188  ..............
    INFORMATION SYSTEMS SECURITY PROGRAM........................          22,201          22,201  ..............
    WWMCCS/GLOBAL COMMAND AND CONTROL SYSTEM....................             469             469  ..............
    DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)............          11,671          11,671  ..............
    JOINT C4ISR BATTLE CENTER (JBC).............................           5,352           5,352  ..............
    JOINT MILITARY INTELLIGENCE PROGRAMS........................           2,302           2,302  ..............
    VERTICAL TAKEOFF LANDING....................................  ..............          10,000         +10,000
    ADVANCED SENSORS/TECH.......................................  ..............           8,448          +8,448
    COMMON IMAGERY GROUND/SURFACE SYS...........................  ..............           4,966          +4,966
    MANNED RECONNAISSANCE SYSTEMS...............................             342             342  ..............
    NAVAL SPACE SURVEILLANCE....................................             399             399  ..............
    DEPOT MAINTENANCE (NON-IF)..................................          69,967          49,967         -20,000
    INDUSTRIAL PREPAREDNESS.....................................          59,060          59,060  ..............
    CLASSIFIED PROGRAMS.........................................         521,541         528,241          +6,700
    ECONOMIC ASSUMPTIONS........................................  ..............  ..............  ..............
                                                                 -----------------------------------------------
      TOTAL, OPERATIONAL SYSTEMS DEVELOPEMENT...................       1,722,183       1,737,397         +15,214
                                                                 ===============================================
      TOTAL, RESEARCH, DEVELOPMENT, TEST, AND EVALUATION,  NAVY.       8,108,923       8,215,519        +106,596
----------------------------------------------------------------------------------------------------------------

         Research, Development, Test, and Evaluation, Air Force

Appropriations, 1998.................................... $14,507,804,000
Budget estimate, 1999...................................  13,598,093,000
Committee recommendation................................  13,693,153,000

    The Committee recommends an appropriation of 
$13,693,153,000 for the Air Force's research, development, 
test, and evaluation programs, an increase of $95,060,000 to 
the budget request.
    The budget activities and programs funded under this 
appropriation are discussed below.

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Airborne laser [ABL].--The Committee provides $235,219,000, 
a net decrease of $57,000,000 to the budget request for 
airborne laser development. The Committee recommendation 
deletes $97,000,000, consistent with the Senate-reported 
Department of Defense authorization bill. The reduction deletes 
funds for air vehicle integration and checkout and for purchase 
of the aircraft. The Committee has added $40,000,000 to support 
ground testing of ABL components as a risk reduction measure 
prior to proceeding with aircraft integration.
    In a 1994 briefing to the Committee, the Air Force outlined 
a risk mitigation approach for the Airborne Laser Program. One 
criteria the Air Force established prior to proceeding to ABL 
demonstrator development was propagation and lethality. The Air 
Force planned to determine whether we can kill the target by 
focusing sufficient lethal energy under representative 
operational conditions. The Committee does not believe that 
this criteria has been met. Therefore, the Committee has added 
$40,000,000 for ground testing and integration necessary to 
meet this criteria prior to proceeding with purchase of an 
aircraft and integration. These added funds should be used to 
conduct ground testing of a representative laser against a 
representative airborne target at appropriate separation 
distances. The tests should yield information on laser beam 
quality and energy deposition on the target.
    Spacetrack.--The Committee recommends $42,832,000 for the 
Spacetrack Program, an increase of $3,300,000. Of this amount, 
$1,400,000 is only for the spectrograph program underway at 
Maui space surveillance site. The balance of $1,900,000 is 
provided only to fully fund AEOS-related acquisition and 
research. Currently, AEOS research-related activities are 
conducted by the Air Force Research Laboratory (Phillips Lab) 
in conjunction with Air Force Space Command. The acquisition of 
the AEOS telescope combined with existing assets located at the 
site and nearby, will enable the Air Force to oversee a wide 
range of space and directed energy technology research for 
current and future Air Force, other defense, and scientific 
needs. This new capability will allow the activity to expand 
its research efforts while still serving the important mission 
requirements of Space Command. Limiting the site to supporting 
only the operational requirements of one user would marginalize 
the utility of and investment in AEOS. Therefore, the Committee 
directs the Air Force Research Laboratory to maintain 
responsibility for all defense and reimbursable research 
activities at the site. The Committee is also aware that Air 
Force Space Command is examining the use of the National Guard 
in managing its operations at the site. The Committee expects 
to be kept fully informed of this matter and directs that the 
Air Force report to the Committee prior to implementing any 
change in the utilization of the Guard.
    F-16 squadrons.--The Committee expresses its concern about 
the aging of F-16A/B aircraft flown by the Air National Guard 
Wings in North Dakota, Arkansas, Minnesota, and Montana. These 
aircraft are approaching, and in some cases have exceeded, 
their projected useful life. In order to ensure that these 
wings continue their role in our Nation's defense, the 
Committee provides $20,000,000 to define a service life 
extension and capability enhancement package for Air National 
Guard F-16A/B aircraft. The Committee directs that these funds 
be directed toward initiation of kit production in fiscal year 
2000 and subsequent delivery and installation of these kits at 
the earliest possible date.
    Major T&E investment.--The Committee has provided 
$5,000,000 to continue analysis and design of a hypersonic test 
facility which would be a one-of-a-kind, national test 
facility, capable of simulating true air conditions in Mach 
numbers of 8 and beyond. Presently there are no continuous flow 
facilities in the United States capable of simulating air flows 
beyond Mach 8. Such a test facility would create new hypersonic 
research, development, and test opportunities for DOD.
    Advanced spacecraft technology.--The Committee understands 
that the Air Force has initiated a solar orbit transfer 
vehicles [SOTV] flight demonstration program, scheduled to fly 
on the first EELV test flight in October 2001. The SOTV system 
potentially can reduce the cost of launch for DOD payloads and 
provide greater operational capability and improved 
survivability for satellites on orbit. The Committee also 
acknowledges the savings to the Government that can be achieved 
by utilizing space on the EELV test flight for the SOTV flight 
demonstration. The Committee recommends an increase of 
$7,500,000 for the SOTV flight demonstration program.
    Target systems development.--The Committee believes that 
the extensive electronic warfare [EW] capabilities of the BCPO 
are at risk of being lost to the DOD test, training, and 
evaluation communities because of escalating cost. The BCPO, a 
White Sands Missile Range asset, provides EW T&E, training and 
EW vulnerability assessments worldwide and is essential to the 
exploration of new equipment effectiveness and suitability 
testing and to the assessment of operational concepts 
applicable to DOD missions at large. While these capabilities 
are critical to DOD missions, it is difficult for development 
programs to bear the full operating and maintenance costs and 
flying hour rate charges. Therefore, the Committee has provided 
$8,000,000 only for the Air Force to pay the basic maintenance, 
operating, and upgrade costs for Big Crow assets.
    The Committee, therefore, directs that the Secretary of 
Defense provide a report no later than December 31, 1999, 
outlining a management and funding plan for sustaining Big Crow 
electronic warfare test assets in fiscal year 2000 and beyond.
    U-2 Program.--The U-2/TR-1 operated between 1985 and 1992 
without one single class A mishap. Since 1992 to the present, 
there have been seven. The Committee is extremely concerned 
about the high incidence of class A mishaps and supports the 
Department's efforts to initiate efforts, such as complete 
contractor logistics support, to ensure that this critical 
program is preserved.
    The Committee has provided $7,500,000 only for sustainment 
of the RAS-1R prime mission equipment until the next generation 
improvements, currently under contract, are available.
    The Committee has provided an additional $6,600,000 only to 
begin preliminary designs for glass cockpit ($3,000,000) and 
JP-8 conversion ($3,600,000) efforts. The Committee expects the 
Air Force to include funding for these much needed 
modernization programs in its fiscal year 2000 budget 
submission.

                           OTHER ADJUSTMENTS

    Excess funds.--The reductions recommended by the Committee 
in the following table delete funds which are excess to firm 
program requirements based on delays in the release of prior-
year funds; late award of contract efforts; slow execution of 
prior-year funds; or differences between the budget request and 
current actual program plans.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Titan space launch vehicles (space).............................          87,443          77,443         -10,000
    Redesign and Requalification Program delays.................  ..............         -10,000         -10,000
----------------------------------------------------------------------------------------------------------------

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are not supported 
by firm requirements or out-year development and procurement 
funds; are premature until related, preliminary efforts are 
completed, and the results evaluated; are lower priority 
relative to other projects; are duplicative of other DOD 
projects; are increasing without a firm justification and out-
year transition commitments; or can be deferred without 
adversely affecting related program developments.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                  1999 budget      Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
Dual Use Applications Program.................................          19,606          10,000           -9,606 
    Program reduction.........................................  ..............          -9,606           -9,606 
Intercontinental ballistic missile--dem/val...................          29,360          16,360          -13,000 
    Advanced inertial measurement unit [AIMU].................  ..............          -8,000           -8,000 
    AIMU interferometric fiber optic gyro.....................  ..............          -3,000           -3,000 
    Sensor/instrumentation integration........................  ..............          -2,000           -2,000 
Hard and Deeply Buried Target Defeat System [HDBTDS] Program..           9,803  ...............          -9,803 
Commercial operations and support savings initia-  tive.......          27,937          17,937          -10,000 
B-52 squadrons................................................           6,436           5,036           -1,400 
    JSOW integration delay....................................  ..............          -1,400           -1,400 
Advanced medium-range air-to-air missile  [AMRAAM]............          45,078          36,078           -9,000 
    AMRAAM P\3\I engineering and manufacturing development                                                      
     program delay............................................  ..............          -9,000           -9,000 
Joint surveillance and target attack radar system [Joint                                                        
 STARS].......................................................         123,793          98,793          -25,000 
    Radar Technology Insertion Program........................  ..............         -25,000          -25,000 
Missile and space technical collection........................          18,595          12,595           -6,000 
E-4B National Airborne Operations Center......................           4,233           2,143           -2,090 
    Development of A and B specs..............................  ..............          -2,090           -2,090 
NAVSTAR global positioning system (user equipment) (space)....          67,238          36,638          -30,600 
    Navigation warfare engineering and manufacturing                                                            
     development..............................................  ..............         -28,600          -28,600 
    Undefined product improvement efforts.....................  ..............          -2,000           -2,000 
C-5 airlift squadrons.........................................          47,940          33,736          -14,204 
    System design and test....................................  ..............          -8,415           -8,415 
    Preproduction fabrication.................................  ..............          -3,209           -3,209 
    Software development......................................  ..............          -2,580           -2,580 
C-17 aircraft.................................................         123,069         108,069          -15,000 
    Open architecture communications control unit.............  ..............         -15,000          -15,000 
KC-135's......................................................          11,093           1,093          -10,000 
    KC-135 CINC support aircraft..............................  ..............         -10,000          -10,000 
----------------------------------------------------------------------------------------------------------------

    Program and project funding increases.--The Committee 
recommends the addition or designation of funds for the 
following projects and programs to reflect congressional 
priorities; to rectify shortfalls in the budget request for 
activities; to implement increases endorsed and/or requested by 
the Air Force to address budget shortfalls; and to effect 
funding transfers recommended by the Committee or the Air 
Force.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                  1999 budget      Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
Defense research sciences.....................................         209,395         209,395   ...............
    National Solar Observatory................................  ..............            (650)            (650)
    Air Force Research Lab mission-focused research projects                                                    
     through Air Force Institute of Technology................  ..............          (5,000)          (5,000)
Advanced materials for weapon systems.........................          21,006          25,006           +4,000 
    Aerospace metals programs.................................  ..............           4,000           +4,000 
Advanced avionics for aerospace vehicles......................          26,442          29,442           +3,000 
    Enhanced recognition and sensing laser radar [ERASER].....  ..............           3,000           +3,000 
Advanced weapons technology...................................          40,153          46,153           +6,000 
    Field laser radar upgrades................................  ..............           6,000           +6,000 
Space-based infrared system [SBIRS] high EMD..................         538,438         543,238           +4,800 
    SABRS integration.........................................  ..............           4,800           +4,800 
Threat simulator development..................................          32,582          39,582           +7,000 
    Real-time electromagnetic digitally controlled processor                                                    
     [REDCAP]/digital integrated air defense system [DIADS]                                                     
     simulation integration with ECIT.........................  ..............           4,000           +4,000 
    REDCAP/DIADS:                                                                                               
        Simulation threat correlation.........................  ..............             600             +600 
        Special project laydowns..............................  ..............           1,000           +1,000 
        Technology proliferation..............................  ..............           1,400           +1,400 
Major T&E investment..........................................          34,518          39,518           +5,000 
    Hypersonic wind tunnel....................................  ..............           5,000           +5,000 
Pollution prevention..........................................           1,673           6,673           +5,000 
    Advanced low pollution coating technology.................  ..............           5,000           +5,000 
F-16 squadrons................................................         125,076         145,076          +20,000 
    Air National Guard Service Life Extension/Enhancement                                                       
     Program..................................................  ..............          20,000          +20,000 
Special Evaluation Program....................................          92,551         102,551          +10,000 
Sensor fuzed weapons..........................................           3,551           7,551           +4,000 
    Active laser sensor redesign in P\3\I program.............  ..............           4,000           +4,000 
Airborne warning and control system [AWACS]...................          28,189          36,189           +8,000 
    Mission computing and sensor processing modernization.....  ..............           8,000           +8,000 
Information warfare support...................................           1,375           3,375           +2,000 
    REDCAP/CATT modeling and simulation adapta-  tion.........  ..............           2,000           +2,000 
Foreign Technology Division...................................           1,234           1,834             +600 
Spacetrack (Space)............................................          39,532          42,832           +3,300 
    AEOS activities...........................................  ..............           3,300           +3,300 
Industrial preparedness.......................................          50,997          53,997           +3,000 
    Aerospace metals programs.................................  ..............           3,000           +3,000 
Productivity, Reliability, Availability, Maintainability                                                        
 Program Office [PRAMPO]......................................             970          14,970          +14,000 
    Aging Landing Gear Life Extension Program.................  ..............           6,000           +6,000 
    Blade repair facility.....................................  ..............           8,000           +8,000 
Cobra ball....................................................  ..............           8,000           +8,000 
    Advanced airborne sensor..................................  ..............           8,000           +8,000 
----------------------------------------------------------------------------------------------------------------

    Program transfers.--The Committee recommends the following 
funding adjustments to effect funding transfers requested by 
the Department of Defense, to align programs in the proper 
development category, to better link specific development 
projects with related efforts, or to restore funds to the 
traditional funding line in the budget.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Region/Sector Operation Control Center Modernization Program....          13,592          18,792          +5,200
    Procurement funds transfer..................................  ..............           5,200          +5,200
Endurance unmanned aerial vehicles..............................           4,307         155,457        +151,150
    Global Hawk transfer/increase...............................  ..............         115,051        +115,051
    CGS transfer................................................  ..............          36,099         +36,099
Advanced sensors/technology.....................................  ..............         134,768        +134,768
    Transfer....................................................  ..............         125,768        +125,768
    EO framing..................................................  ..............           9,000          +9,000
CIG/SS..........................................................  ..............          20,379         +20,379
    Transfer....................................................  ..............          20,379         +20,379
Manned reconnaissance systems...................................  ..............          21,566         +21,566
    Transfer....................................................  ..............           7,466          +7,466
    Fuel conversion.............................................  ..............           3,600          +3,600
    Glass cockpit...............................................  ..............           3,000          +3,000
    RAS-1R......................................................  ..............           7,500          +7,500
----------------------------------------------------------------------------------------------------------------

    Authorization adjustments.--The Committee recommends the 
following adjustments based on the recommendations reported in 
the Senate bill authorizing programs and activities of the 
Department of Defense [DOD] for fiscal year 1999:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Materials.......................................................          62,578          68,678          +6,100
    Friction stir welding.......................................  ..............           1,500          +1,500
    Environmentally safe aircraft coating \1\...................  ..............           2,000          +2,000
    Inorganic/organic optical limiters \1\......................  ..............           2,600          +2,600
Aerospace propulsion............................................          69,061          69,561            +500
    Variable displacement vane pump [VDVP]......................  ..............           2,000          +2,000
    Program reduction...........................................  ..............          -4,000          -4,000
    Thermophotovoltaics \1\.....................................  ..............           2,500          +2,500
Phillips Laboratory exploratory development.....................         116,139         125,139          +9,000
    HAARP.......................................................  ..............           9,000          +9,000
Aerospace propulsion subsystems integration.....................          30,814          27,814          -3,000
    Program reduction...........................................  ..............          -3,000          -3,000
Aerospace propulsion and power technology.......................          38,984          36,984          -2,000
    Program reduction...........................................  ..............          -2,000          -2,000
Crew systems and personnel protection technology................          16,603          35,103         +18,500
    Aircrew laser eye protection................................  ..............           5,500          +5,500
    Panoramic night vision goggles..............................  ..............           3,000          +3,000
    ACES II risk reduction \1\..................................  ..............           2,000          +2,000
    Helmet display technology \1\...............................  ..............           8,000          +8,000
Electronic combat technology....................................          25,553          39,553         +14,000
    AN/ALR-69 radar warning receiver improvements...............  ..............          14,000         +14,000
Ballistic missile technology....................................  ..............          16,000         +16,000
    GPS range safety development and demonstra-  tion...........  ..............          16,000         +16,000
Advanced spacecraft technology..................................          42,571          65,071         +22,500
    Range upgrades to support upper stage flight experiments....  ..............           5,000          +5,000
    Solar orbital transfer vehicle..............................  ..............           7,500          +7,500
    Micro-Satellite Technology Program..........................  ..............          10,000         +10,000
Airborne Laser Program..........................................         292,219         235,219         -57,000
    Aircraft purchase and integration...........................  ..............         -97,000         -97,000
    Ground testing and targets \2\..............................  ..............          40,000         +40,000
Satellite system survivability..................................  ..............          15,000         +15,000
NATO research and development (H)...............................          11,117          10,717            -400
    Program reduction...........................................  ..............            -400            -400
Variable stability in-flight simulator test aircraft............  ..............           7,400          +7,400
    NF-16D VISTA support........................................  ..............           3,800          +3,800
    NF-16D VISTA VSS:                                                                                           
        Improvements............................................  ..............           1,100          +1,100
        Ground simulator........................................  ..............           1,500          +1,500
        Hotbench................................................  ..............           1,000          +1,000
EW development..................................................          90,126         100,126         +10,000
    Classified adjustment.......................................  ..............          10,000         +10,000
Global positioning system block IIF (space).....................          62,591          84,591         +22,000
    Enhanced GPS................................................  ..............          22,000         +22,000
Target systems development......................................           1,666           9,666          +8,000
    KC-135 Big Crow Program.....................................  ..............           8,000          +8,000
Test and evaluation support.....................................         370,168         366,168          -4,000
    Program reduction...........................................  ..............          -4,000          -4,000
Development planning............................................           6,075           4,075          -2,000
    Program reduction...........................................  ..............          -2,000          -2,000
Theater battle management [TBM] C\4\I...........................          27,292          32,292          +5,000
    Theater battle management core system [TBMCS] development...  ..............           5,000          +5,000
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project funding increases''    
  heading of this report section.                                                                               
\2\ Program increase is further detailed in the report language contained in this report section.               

                     COMMITTEE RECOMMENDED PROGRAM

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
     RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, AIR FORCE                                                     
                                                                                                                
BASIC RESEARCH: DEFENSE RESEARCH SCIENCES.......................         209,395         209,395  ..............
APPLIED RESEARCH:                                                                                               
    MATERIALS...................................................          62,578          68,678          +6,100
    AEROSPACE FLIGHT DYNAMICS...................................          64,932          64,932  ..............
    ARMSTRONG LAB EXPLORATORY DEVELOPMENT.......................          60,805          60,805  ..............
    AEROSPACE PROPULSION........................................          69,061          69,561            +500
    AEROSPACE AVIONICS..........................................          65,549          65,549  ..............
    HYPERSONIC TECHNOLOGY PROGRAM...............................          16,649          16,649  ..............
    PHILLIPS LAB EXPLORATORY DEVELOPMENT........................         116,139         125,139          +9,000
    CONVENTIONAL MUNITIONS......................................          41,529          41,529  ..............
    COMMAND CONTROL AND COMMUNICATIONS..........................          65,175          65,175                
    DUAL USE APPLICATIONS PROGRAM...............................          19,606          10,000          -9,606
                                                                 -----------------------------------------------
      TOTAL, APPLIED RESEARCH...................................         582,023         588,017          +5,994
                                                                 ===============================================
ADVANCED TECHNOLOGY DEVELOPMENT:                                                                                
    LOGISTICS SYSTEMS TECHNOLOGY................................           8,677           8,677  ..............
    INTEGRATED DATA SYSTEMS.....................................  ..............  ..............  ..............
    ADVANCED MATERIALS FOR WEAPON SYSTEMS.......................          21,006          25,006          +4,000
    AEROSPACE PROPULSION SUBSYSTEMS INTEGRATION.................          30,814          27,814          -3,000
    ADVANCED AVIONICS FOR AEROSPACE VEHICLES....................          26,442          29,442          +3,000
    FLIGHT VEHICLE TECHNOLOGY...................................           7,035           7,035  ..............
    AEROSPACE STRUCTURES........................................          12,494          12,494  ..............
    AEROSPACE PROPULSION AND POWER TECHNOLOGY...................          38,984          36,984          -2,000
    PERSONNEL, TRAINING AND SIMULATION TECHNOLOGY...............           6,636           6,636  ..............
    CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY............          16,603          35,103         +18,500
    FLIGHT VEHICLE TECHNOLOGY INTEGRATION.......................           7,674           7,674  ..............
    ADVANCED AVIONICS INTEGRATION...............................          10,536          10,536  ..............
    ELECTRONIC COMBAT TECHNOLOGY................................          25,553          39,553         +14,000
    SPACE AND MISSILE ROCKET PROPULSION.........................          21,121          21,121  ..............
    BALLISTIC MISSILE TECHNOLOGY................................  ..............          16,000         +16,000
    ADVANCED SPACECRAFT TECHNOLOGY..............................          42,571          65,071         +22,500
    SPACE SYSTEMS ENVIRONMENTAL INTERACTIONS TECHNOLOGY.........           3,457           3,457  ..............
    CONVENTIONAL WEAPONS TECHNOLOGY.............................          23,244          23,244  ..............
    ADVANCED WEAPONS TECHNOLOGY.................................          40,153          46,153          +6,000
    WEATHER SYSTEMS TECHNOLOGY..................................           1,568           1,568  ..............
    ENVIRONMENTAL ENGINEERING TECHNOLOGY........................           2,663           2,663  ..............
    C\3\I SUBSYSTEM INTEGRATION.................................          11,025          11,025  ..............
    ADVANCED COMPUTING TECHNOLOGY...............................           7,827           7,827  ..............
    C\3\ ADVANCED DEVELOPMENT...................................          13,235          13,235  ..............
                                                                 -----------------------------------------------
      TOTAL, ADVANCED TECHNOLOGY DEVELOPMENT....................         379,318         458,318         +79,000
                                                                 ===============================================
DEMONSTRATION AND VALIDATION:                                                                                   
    INTELLIGENCE ADVANCED DEVELOPMENT...........................           4,615           4,615  ..............
    AIRBORNE LASER PROGRAM......................................         292,219         235,219         -57,000
    ADVANCED MILSATCOM (SPACE)..................................          54,413          54,413  ..............
    POLAR ADJUNCT (SPACE).......................................          41,508          41,508  ..............
    NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL...........          64,732          64,732  ..............
    SATELLITE SYSTEM SURVIVABILITY..............................  ..............          15,000         +15,000
    SPACE BASED INFRARED ARCHITECTURE (SPACE)--DEM/VAL..........         160,262         160,262  ..............
    COMMAND, CONTROL, AND COMMUNICATION APPLICATIONS............           7,770           7,770  ..............
    COMBAT IDENTIFICATION TECHNOLOGY............................           6,177           6,177  ..............
    NATO RESEARCH AND DEVELOPMENT(H)............................          11,117          10,717            -400
    JOINT STRIKE FIGHTER........................................         456,137         456,137  ..............
    INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.................          29,360          16,360         -13,000
    C-130J--DEM/VAL.............................................  ..............  ..............  ..............
    EVOLVED EXPENDABLE LAUNCH VEHICLE PROGRAM (SPACE)...........  ..............  ..............  ..............
    GLOBAL BROADCAST SERVICE....................................          70,147          70,147  ..............
    AIR FORCE/NRO PARTNERSHIP (AFNP)............................          17,645          17,645  ..............
    JOINT PRECISION APPROACH AND LANDING SYSTEMS--DEM/VAL.......          22,057          22,057  ..............
    SPACE-BASED LASER...........................................          35,000          35,000  ..............
    VARIABLE STABILITY IN-FLIGHT SIMULATOR TEST AIRCRAFT........  ..............           7,400          +7,400
    HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM (HDBTDS)........           9,803  ..............          -9,803
                                                                 -----------------------------------------------
      TOTAL, DEMONSTRATION & VALIDATION.........................       1,282,962       1,225,159         -57,803
                                                                 ===============================================
ENGINEERING AND MANUFACTURING DEVELOPMENT:                                                                      
    INTEGRATED AVIONICS PLANNING AND DEVELOPMENT................          10,762          10,762  ..............
    ENGINE MODEL DERIVATIVE PROGRAM (EMDP)......................  ..............  ..............  ..............
    NUCLEAR WEAPONS SUPPORT.....................................           4,977           4,977  ..............
    B-1B........................................................         195,385         195,385  ..............
    TRAINING SYSTEMS DEVELOPMENT................................           1,961           1,961  ..............
    SPECIALIZED UNDERGRADUATE PILOT TRAINING....................          55,563          55,563  ..............
    F-22 EMD....................................................       1,582,217       1,582,217  ..............
    B-2 ADVANCED TECHNOLOGY BOMBER..............................         131,247         131,247  ..............
    MANPOWER, PERSONNEL AND TRAINING DEVELOPMENT................  ..............  ..............  ..............
    EW DEVELOPMENT..............................................          90,126         100,126         +10,000
    SPACE BASED INFRARED SYSTEM (SBIRS) HIGH EMD................         538,438         543,238          +4,800
    SPACE BASED INFRARED SYSTEM (SBIRS) LOW EMD.................          33,328          33,328  ..............
    MILSTAR LDR/MDR SATELLITE COMMUNICATIONS (SPACE)............         550,940         550,940  ..............
    GLOBAL POSITIONING SYSTEM BLOCK IIF (SPACE).................          62,591          84,591         +22,000
    MUNITIONS DISPENSER DEVELOPMENT.............................           7,559           7,559  ..............
    ARMAMENT/ORDNANCE DEVELOPMENT...............................          12,037          12,037  ..............
    SUBMUNITIONS................................................           4,805           4,805  ..............
    JOINT STANDOFF LAND ATTACK MISSILE (JSLAM)..................  ..............  ..............  ..............
    AIR BASE OPERABILITY........................................           2,503           2,503  ..............
    JOINT DIRECT ATTACK MUNITION................................          12,204          12,204  ..............
    AEROMEDICAL/CHEMICAL DEFENSE SYSTEMS........................           3,336           3,336  ..............
    LIFE SUPPORT SYSTEMS........................................           3,744           3,744  ..............
    CIVIL, FIRE, ENVIRONMENTAL, SHELTER ENGINEERING.............           2,715           2,715  ..............
    JOINT STANDOFF WEAPONS SYSTEMS..............................          15,134          15,134  ..............
    COMBAT TRAINING RANGES......................................          14,581          14,581  ..............
    COMPUTER RESOURCE TECHNOLOGY TRANSITION (CRTT)..............             200             200  ..............
    INTELLIGENCE EQUIPMENT......................................           1,300           1,300  ..............
    JOINT TACTICAL INFORMATION DISTRIBUTION SYSTEM (JTIDS)......           7,956           7,956  ..............
    COMMON LOW OBSERVABLES VERIFICATION SYSTEM (CLOVERS)........           4,901           4,901  ..............
    JOINT INTEROPERABILITY OF TACTICAL COMMAND & CONTROL........           5,823           5,823  ..............
    COMMERCIAL OPERATIONS AND SUPPORT SAVINGS INITIATIVE........          27,937          17,937         -10,000
    INTERCONTINENTAL BALLISTIC MISSILE--EMD.....................          81,546          81,546  ..............
    EVOLVED EXPENDABLE LAUNCH VEHICLE PROGRAM (SPACE)...........         280,297         280,297  ..............
    RDT&E FOR AGING AIRCRAFT....................................           4,901           4,901  ..............
    JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM)...............  ..............  ..............  ..............
    COMBAT INTELLIGENCE SYSTEM..................................  ..............  ..............  ..............
    COMBAT SURVIVOR EVADER LOCATOR..............................  ..............  ..............  ..............
                                                                 -----------------------------------------------
      TOTAL, ENGINEERING AND MANUFACTURING DEVELOPMENT..........       3,751,014       3,777,814         +26,800
                                                                 ===============================================
RDT&E MANAGEMENT SUPPORT:                                                                                       
    SPACE TEST PROGRAM (SPACE)..................................  ..............  ..............  ..............
    THREAT SIMULATOR DEVELOPMENT................................          32,582          39,582          +7,000
    TARGET SYSTEMS DEVELOPMENT..................................           1,666           9,666          +8,000
    MAJOR T&E INVESTMENT........................................          34,518          39,518          +5,000
    RAND PROJECT AIR FORCE......................................          21,168          21,168  ..............
    RANCH HAND II EPIDEMIOLOGY STUDY............................           4,408           4,408  ..............
    SMALL BUSINESS INNOVATION RESEARCH..........................  ..............  ..............  ..............
    INITIAL OPERATIONAL TEST & EVALUATION.......................          24,541          24,541  ..............
    TEST AND EVALUATION SUPPORT.................................         370,168         366,168          -4,000
    DEVELOPMENT PLANNING........................................           6,075           4,075          -2,000
    ENVIRONMENTAL CONSERVATION..................................  ..............  ..............  ..............
    POLLUTION PREVENTION........................................           1,673           6,673          +5,000
    ENVIRONMENTAL COMPLIANCE....................................  ..............  ..............  ..............
    ROCKET SYSTEMS LAUNCH PROGRAM (SPACE).......................           7,865           7,865  ..............
    SPACE TEST PROGRAM (STP)....................................          45,933          45,933  ..............
    MINOR CONSTRUCTION (RPM)--RDT&E.............................  ..............  ..............  ..............
    MAINTENANCE AND REPAIR (RPM)--RDT&E.........................  ..............  ..............  ..............
    REAL PROPERTY SERVICES (RPS)--RDT&E.........................  ..............  ..............  ..............
    BASE OPERATIONS--RDT&E......................................  ..............  ..............  ..............
    INTERNATIONAL ACTIVITIES....................................           3,752           3,752  ..............
                                                                 -----------------------------------------------
      TOTAL, RDT&E MANAGEMENT SUPPORT...........................         554,349         573,349         +19,000
                                                                 ===============================================
OPERATIONAL SYSTEMS DEVELOPEMENT:                                                                               
    B-52 SQUADRONS..............................................           6,436           5,036          -1,400
    ADVANCED CRUISE MISSILE.....................................  ..............  ..............  ..............
    JOINT SURVEILLANCE SYSTEM...................................           2,175           2,175  ..............
    REGION/SECTOR OPERATION CONTROL CENTER MODERNIZATION........          13,592          18,792          +5,200
    NORTH ATLANTIC DEFENSE SYSTEM...............................             615             615  ..............
    A-10 SQUADRONS..............................................           2,312           2,312  ..............
    F-16 SQUADRONS..............................................         125,076         145,076         +20,000
    F-15E SQUADRONS.............................................         104,207         104,207  ..............
    MANNED DESTRUCTIVE SUPPRESSION..............................           2,443           2,443  ..............
    F-117A SQUADRONS............................................           5,147           5,147  ..............
    TACTICAL AIM MISSILES.......................................          52,966          52,966  ..............
    ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM)...........          45,078          36,078          -9,000
    PODDED RECONNAISSANCE SYSTEM................................  ..............  ..............  ..............
    AF TENCAP...................................................           6,447           6,447  ..............
    SPECIAL EVALUATION PROGRAM..................................          92,551         102,551         +10,000
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............          92,069          92,069  ..............
    SENSOR FUSED WEAPONS........................................           3,551           7,551          +4,000
    JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM)...............         132,870         132,870  ..............
    THEATER AIR CONTROL SYSTEMS.................................             431             431  ..............
    COMBAT INTELLIGENCE SYSTEM..................................           9,802           9,802  ..............
    AIRBORNE WARNING AND CONTROL SYSTEM (AWACS).................          28,189          36,189          +8,000
    ADVANCED COMMUNICATIONS SYSTEMS.............................           2,348           2,348  ..............
    EVALUATION AND ANALYSIS PROGRAM.............................          84,950          72,150         -12,800
    ADVANCED PROGRAM TECHNOLOGY.................................          74,707          74,707  ..............
    THEATER BATTLE MANAGEMENT (TBM) C\4\I.......................          27,292          32,292          +5,000
    JOINT SURVEILLANCE AND TARGET ATTACK RADAR SYSTEM...........         123,793          98,793         -25,000
    SEEK EAGLE..................................................          17,590          17,090            -500
    ADVANCED PROGRAM EVALUATION.................................         272,914         251,014         -21,900
    USAF MODELING AND SIMULATION................................          14,899          14,899  ..............
    WARGAMING AND SIMULATION CENTERS............................           5,287           5,287  ..............
    MISSION PLANNING SYSTEMS....................................          17,090          17,090  ..............
    TACTICAL INFORMATION PROGRAM (TIP)..........................          10,685          10,685  ..............
    INFORMATION WARFARE SUPPORT.................................           1,375           3,375          +2,000
    WAR RESERVE MATERIEL--EQUIPMENT/SECONDARY ITEMS.............           1,470           1,470  ..............
    THEATER MISSILE DEFENSES....................................          31,057          31,057  ..............
    TECHNICAL EVALUATION SYSTEM.................................         113,040         113,040  ..............
    SPECIAL EVALUATION SYSTEM...................................          61,119          61,119  ..............
    FOREIGN TECHNOLOGY DIVISION.................................           1,234           1,834            +600
    MISSILE AND SPACE TECHNICAL COLLECTION......................          18,595          12,595          -6,000
    MANAGEMENT HEADQUARTERS GDIP................................           1,241           1,241  ..............
    E-4B NATIONAL AIRBORNE OPERATIONS CENTER (NAOC).............           4,233           2,143          -2,090
    DEFENSE SATELLITE COMMUNICATIONS SYSTEM (SPACE).............          15,641          15,641  ..............
    MINIMUM ESSENTIAL EMERGENCY COMMUNICATIONS NETWORK..........          39,230          39,230  ..............
    INFORMATION SYSTEMS SECURITY PROGRAM........................           8,420           8,420  ..............
    GLOBAL COMBAT SUPPORT SYSTEM................................          17,973          17,973  ..............
    JOINT SPECTRUM CENTER (JSC).................................  ..............  ..............  ..............
    GLOBAL COMMAND AND CONTROL SYSTEM...........................          13,675          13,675  ..............
    WORLD-WIDE MILITARY COMMAND AND CONTROL SYSTEMS.............  ..............  ..............  ..............
    MILSTAR SATELLITE COMMUNICATIONS SYSTEM (SPACE).............           2,352           2,352  ..............
    SELECTED ACTIVITIES.........................................           3,000           3,000  ..............
    GLOBAL AIR TRAFFIC MANAGEMENT (GATM)........................          27,056          27,056  ..............
    SATELLITE CONTROL NETWORK (SPACE)...........................          56,622          56,622  ..............
    WEATHER SERVICE.............................................          10,649          10,649  ..............
    AIR TRAFFIC CONTROL, APPROACH, AND LANDING SYSTEM...........           4,729           4,729  ..............
    MEDIUM LAUNCH VEHICLES (SPACE)..............................           7,375           7,375  ..............
    SECURITY AND INVESTIGATIVE ACTIVITIES.......................             458             458  ..............
    NATIONAL AIRSPACE SYSTEM (NAS) PLAN.........................           1,881           1,881  ..............
    INERTIAL UPPER STAGE (IUS)..................................             558             558  ..............
    TITAN SPACE LAUNCH VEHICLES (SPACE).........................          87,443          77,443         -10,000
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.....................  ..............  ..............  ..............
    TACTICAL TERMINAL...........................................             237             237  ..............
    DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)............          20,432          20,432  ..............
    NAVSTAR GLOBAL POSITIONING SYSTEM (USER EQUIPMENT)..........          67,238          36,638         -30,600
    NAVSTAR GLOBAL POSITIONING SYSTEM (SPACE AND CONTROL).......          21,155          21,155  ..............
    EASTERN SPACE LAUNCH FACILITY (ESLF) (SPACE)................          24,578          24,578  ..............
    ENDURANCE UNMANNED AERIAL VEHICLES..........................           4,307         155,457        +151,150
    ADVANCED SENSORS/TECHNOLOGY.................................  ..............         134,768        +134,768
    COMMON IMSGERY GROUND/SURFACE SYS...........................  ..............          20,379         +20,379
    MANNED RECONNAISSANCE SYSTEMS...............................  ..............          21,566         +21,566
    NCMC--TW/AA SYSTEM..........................................           7,878           7,878  ..............
    SPACETRACK (SPACE)..........................................          39,532          42,832          +3,300
    DEFENSE SUPPORT PROGRAM (SPACE).............................          12,037          12,037  ..............
    NUDET DETECTION SYSTEM (SPACE)..............................          13,314          13,314  ..............
    SPACE ARCHITECT.............................................          13,714          13,714  ..............
    EVOLVED EXPENDABLE LAUNCH VEHICLE (EELV) (SPACE)............           3,316           3,316  ..............
    MODELING AND SIMULATION SUPPORT.............................           1,093           1,093  ..............
    C-5 AIRLIFT SQUADRONS.......................................          47,940          33,736         -14,204
    C-17 AIRCRAFT...............................................         123,069         108,069         -15,000
    AIR CARGO MATERIAL HANDLING-463-L) (NON-IF).................             512             512  ..............
    KC-135S.....................................................          11,093           1,093         -10,000
    DEPOT MAINTENANCE (NON-IF)..................................           1,500           1,500  ..............
    INDUSTRIAL PREPAREDNESS.....................................          50,997          53,997          +3,000
    PRODUCTIVITY, RELIABILITY, AVAILABILITY, MAINTAIN...........             970          14,970         +14,000
    JOINT LOGISTICS PROGRAM--AMMUNITION STANDARD SYSTEM.........          16,086          16,086  ..............
    SUPPORT SYSTEMS DEVELOPMENT.................................          23,010          23,010  ..............
    CRYPTOLOGIC/SIGINT-RELATED SKILL TRAINING...................  ..............  ..............  ..............
    CIVILIAN COMPENSATION PROGRAM...............................           6,756           6,756  ..............
    NATO JOINT STARS............................................  ..............  ..............  ..............
    COBRA BALL (FLD)............................................  ..............           8,000          +8,000
    CLASSIFIED PROGRAMS.........................................       4,420,330       4,189,930        -230,400
    ECONOMIC ASSUMPTIONS........................................  ..............  ..............  ..............
                                                                 -----------------------------------------------
      TOTAL, OPERATIONAL SYSTEMS DEVELOPMENT....................       6,839,032       6,861,101         +22,069
                                                                 ===============================================
      TOTAL, RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, AIR                                                   
       FORCE....................................................      13,598,093      13,693,153         +95,060
----------------------------------------------------------------------------------------------------------------

       Research, Development, Test, and Evaluation, Defense-wide

Appropriations, 1998....................................  $9,821,760,000
Budget estimate, 1999...................................   9,314,665,000
Committee recommendation................................   9,032,908,000

    The Committee recommends an appropriation of $9,032,908,000 
for defense-wide research, development, test, and evaluation 
programs, a decrease of $281,757,000 to the budget request.
    The budget activities and programs funded under this 
appropriation are discussed below.

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Defense research sciences.--The Committee recognizes the 
critical need for DOD to seek new technologies to prevent 
corrosion, reduce corrosion-related costs, and extend the life 
of aircraft in a manner compatible with environmental concerns. 
The current use of chromium positive ions, identified by the 
Environmental Protection Agency [EPA] as hazardous material, 
poses maintenance and removal problems for the Armed Services. 
The Committee is aware of interdisciplinary research in 
anticorrosion and provides $1,200,000 to support research on 
the improvement of testing methods, instrumentation, and 
procedures for characterizing coated aluminum clad systems used 
in aircraft fleets.
    The Committee further is aware of research on the 
applications of spectral hole burning [SHB], a technique which 
exploits lasers and developing optoelectronics technologies. 
Storage devices using SHB techniques and materials recently 
established a world record for bandwidth-spatial density. This 
technology holds great promise for meeting the high-speed 
network needs and high-density storage requirements of next 
generation computing and internet devices. The Committee 
directs that up to $2,000,000 shall be made available only for 
research on applications of SHB to optical time and frequency 
domain memory, signal processing, delay, routing, and optical 
frequency standards.
    The Committee also urges the Department of Defense to 
accommodate the funding levels recommended in the Senate-
reported Department of Defense authorization bill for 
continuation of the United States-Japan Management Training 
Program.
    The Committee encourages the Defense Advanced Research 
Projects Agency [DARPA] to support advanced acoustics research 
coordinated by a multiuniversity research institution with a 
regional advanced acoustics research and development program. 
In particular, the Committee supports research on medical 
ultrasound technology, which may have applications for 
noninvasive remote surgery as well as battlefield trauma, and 
research on the photoacoustic detection of chemical and 
biological warfare agents.
    Gulf war illness.--The Committee notes that the Department 
has spent considerable resources to determine what factors may 
have contributed to the gulf war illnesses afflicting thousands 
of veterans. The Department has a need to rapidly determine the 
exposure of deployed troops to environmental threats, including 
weapons of mass destruction. The same method could also help 
determine whether military personnel had been exposed to a 
chemical agent due to a terrorist attack, even if outward 
symptoms are not immediately apparent. The Committee directs 
the Department to establish a biomonitoring system to assess 
exposures of military personnel to weapons of mass destruction 
and other toxic substances. The Department shall establish this 
system in the most cost-effective manner.
    Computing systems and communications technology.--The 
Committee is aware that the sponsorship of the Software 
Engineering Institute [SEI] was transferred in June 1997, from 
the Defense Advanced Research Projects Agency [DARPA] to the 
Office of the Under Secretary of Defense for Acquisition and 
Technology, but that the funding request for SEI in fiscal year 
1999 is included within the programs administered by DARPA. The 
Committee recommendation provides $17,100,000, the budget 
request amount, only for continued activities at SEI.
    Advanced electronics technology.--The Committee directs 
that the $10,000,000 made available for mask research is 
provided to DARPA for support of x-ray masks for the F-22, 
Apache Longbow, and other defense programs.
    Defense Special Weapons Agency [DSWA].--The Committee is 
dismayed to learn that the Department is giving serious 
consideration to the fragmentation and transfer of the critical 
nuclear and WMD-related functions currently performed by Field 
Command DSWA. Previous studies and efficient management 
practices in an era of downsizing argue in favor of 
consolidated execution by a single entity. Field Command is 
already efficiently performing essential nuclear stockpile 
support, nuclear surety inspections, and WMD-related testing as 
a key member of the New Mexico nuclear corridor. These 
functions are fundamental and integral to the mission of the 
new Defense Threat Reduction Agency [DTRA] and shall be the 
responsibility of the new Agency. In the interest of efficiency 
and colocation of activities, the Committee believes that all 
of these functions should continue to be performed by DTRA at 
the present Field Command locations.
    Physical security equipment.--Of the amount appropriated 
for physical security, the Committee has included $3,000,000 
for analytic system and software for evaluating safe guards and 
security which has also been included by the authorizing 
committee.
    Humanitarian demining technologies.--The Committee 
continues to support demining research and development efforts 
and directs that within funds appropriated for this program, 
$800,000 is to be used for research and development of acoustic 
technologies.
    Pacific Disaster Center.--The Committee recommends 
$8,000,000 for the Pacific Disaster Center [PDC] to support 
current operations. The Committee has been informed that the 
Air Weather Service is interested in studying climatology 
impacts through modeling and simulation and believes the PDC 
should examine how it might aid this proposal. PDC should also 
examine ways to expand its current outreach efforts with the 
local community through continued use of and financial linkage 
to the economic development board.
    DOD's reorganization plan which combines the Office of the 
Assistant Secretary of Defense, C\3\I, and the Deputy Under 
Secretary of Defense for Space offers a unique opportunity for 
the newly formed organization to combine the efforts of several 
different projects with civilian and defense interests involved 
in emergency management. The programs include the Pacific 
Disaster Center, hazard support system, Project Wildfire, 
global disaster information network, and other related 
emergency management initiatives. The Committee believes 
continuity of management is critical to the success of the 
aforementioned programs and, therefore, directs that the office 
formerly under the Deputy Under Secretary of Defense for Space 
shall continue to maintain oversight over and responsibility 
for these programs within the newly formed organization.
    NATO imagery interoperability.--Of the funds provided for 
NATO R&D, $4,000,000 may be used for the purpose of modifying 
the image product library to make these systems compatible with 
NATO imagery formats outlined in applicable NATO 
standardization agreements 7023 and 4545.
    Information Systems Security Program.--The Committee 
directs that of the funds appropriated, $500,000 shall be 
available only for the high security computational structure 
project focused on mitigation of information warfare threats.
    Special operations technology development.--The Committee 
notes that wireless video links with extended ranges may have 
very broad applications ranging from force protection, 
surveillance, reconnaissance, counterdrug, and 
counterintelligence. Given the broad spectrum of applicability 
through U.S. military operations and requirements, the 
Committee encourages the Department to consider funding for the 
continued development of miniature audio visual surveillance 
systems.

                 BALLISTIC MISSILE DEFENSE ORGANIZATION

    Ballistic Missile Defense Organization [BMDO].--The 
Committee has provided $3,178,498,000 for research, 
development, test, and evaluation [RDT&E] efforts on national 
and theater ballistic missile defense systems and technologies. 
This appropriation represents an overall decrease of $442,000 
to the Ballistic Missile Defense Organization [BMDO] RDT&E 
budget request. The Committee also provides $258,880,000 for 
procurement of ballistic missile defense systems and 
components, a reduction of $150,500,000 to the budget request. 
Thus, the total appropriation for ballistic missile defense 
programs in this bill is $3,437,378,000. The Committee has made 
a number of adjustments to individual RDT&E accounts.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                  1999 budget      Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
Support technologies--applied research........................          86,866         100,866          +14,000 
    Wide bandgap semiconductor research.......................  ..............          14,000          +14,000 
Support technologies--advanced technology develop-  ment......         166,676         299,676         +133,000 
    Scorpius space launch technology development..............  ..............           5,000           +5,000 
    Excalibur space launch technology develop-  ment..........  ..............           5,000           +5,000 
    Space-based laser technology demonstrator.................  ..............          94,000          +94,000 
    Atmospheric intercept technology..........................  ..............          22,000          +22,000 
    Photoconduction on active pixel sensors...................  ..............           5,000           +5,000 
    Silicon thick film mirror coatings........................  ..............           2,000           +2,000 
Theater high-altitude area defense--TMD.......................         497,752         497,752   ...............
    User operational evaluation system........................  ..............        -180,000         -180,000 
    Demonstration/validation program continuation.............  ..............         180,000         +180,000 
NAVY theaterwide..............................................         190,446         295,446         +105,000 
    Navy Theaterwide Program increase.........................  ..............          70,000          +70,000 
    Navy theaterwide radar improvements competi-  tion........  ..............          35,000          +35,000 
MEADS concepts--dem/val.......................................          43,027          10,027          -33,000 
    MEADS Program termination.................................  ..............         -43,027          -43,027 
    MEADS support and participation in ADSAM experiments......  ..............          10,027          +10,027 
Boost phase intercept theater missile defense acquisition--dem/                                                 
 val..........................................................  ..............          10,000          +10,000 
Joint theater missile defense--dem/val........................         176,846         209,346          +32,500 
    Extended air defense testbed..............................  ..............           7,500           +7,500 
    Pacific Missile Range facility [PMRF] TMD upgrades........  ..............          20,000          +20,000 
    Optical-electro sensors...................................  ..............           5,000           +5,000 
    Kauai test facility [KTF].................................  ..............          (5,000)          (5,000)
BMD technical operations......................................         190,147         192,147           +2,000 
    Advanced Research Center [ARC]............................  ..............           7,000           +7,000 
    Program reduction.........................................  ..............          -5,000           -5,000 
International cooperative programs............................          50,676          62,676          +12,000 
    ARROW deployability/interoperability......................  ..............          12,000          +12,000 
Threat and countermeasures....................................          22,113          25,113           +3,000 
    Long-range missile feasibility assessment.................  ..............           3,000           +3,000 
Theater high-altitude area defense system--TMD--  EMD.........         323,942  ...............        -323,942 
    Program reduction.........................................  ..............        -323,942         -323,942 
Patriot PAC-3 theater missile defense acquisition--  EMD......         137,265         182,265          +45,000 
    Procurement funds transfer................................  ..............          40,000          +40,000 
    PAC-3 air directed surface-to-air missile test-  ing......  ..............           5,000           +5,000 
----------------------------------------------------------------------------------------------------------------

    Theater high altitude area defense [THAAD].--The Committee 
recommendation provides $497,752,000 for continuation of the 
THAAD Demonstration/Validation Program. The Committee has 
deleted all funds requested for THAAD engineering and 
manufacturing development.
    Within the amount proposed for the THAAD Demonstration/
Validation Program, the Committee has deleted all $180,000,000 
budgeted for the purchase of 40 user operational evaluation 
system [UOES] missiles. The Committee has repeatedly raised 
questions about the proposal to purchase 40 THAAD missiles 
based on a single intercept test. The Committee has restored 
these deleted funds to the demonstration/validation program to 
ensure fully funded continuation of THAAD development.
    Patriot PAC-3.--The Committee recommendation provides a 
total increase of $45,000,000 for continuation of the Patriot 
PAC-3 engineering and manufacturing development program. A 
portion of the increase, $40,000,000, has been transferred from 
PAC-3 procurement as requested by the Department of Defense. 
The Committee directs that the additional increase of 
$5,000,000 be devoted only to engineering changes and the 
production of at least two PAC-3 missiles which will be 
dedicated to ADSAM testing. Additional Committee observations 
on this issue are outlined in the title IV overview section of 
this report.
    Family of systems engineering and integration [FoS E&I].--
The Committee directs that $10,000,000 of the funds in this 
program element be dedicated to BMDO participation in the 
planning and conduct of ADSAM and ADAAM demonstrations. The 
Committee believes that the lessons learned could have long-
term benefits to both ballistic missile defense and air 
defense. Additional Committee observations on this issue are 
outlined in the title IV overview section of this report.
    BMD technical operations.--The Committee continues to 
support the efforts being performed at the Space and Missile 
Defense Command's Advanced Research Center [ARC]. The ARC has 
proven its worth in the development of both theater and 
national missile defense systems. Therefore, the Committee 
increases the amount available for the ARC by $7,000,000, 
providing a total of at least $14,756,000.

                           OTHER ADJUSTMENTS

    Program reductions and deferrals.--The following table 
lists program reductions recommended by the Committee to 
eliminate funds requested for programs which are not supported 
by firm requirements or out-year development and procurement 
funds; are premature until related, preliminary efforts are 
completed, and the results evaluated; are lower priority 
relative to other projects; are duplicative of other DOD 
projects; are increasing without a firm justification and out-
year transition commitments; or can be deferred without 
adversely affecting related program developments.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Next generation internet........................................          40,000          30,000         -10,000
    Program reduction...........................................  ..............         -10,000         -10,000
Computing systems and communications technology.................         417,723         346,323         -71,400
    Hand free interface development.............................  ..............          -7,500          -7,500
    Joint infrastructure protection.............................  ..............         -69,900         -69,900
    Software security research \1\..............................  ..............             500            +500
    Asset source for software engineering technology [ASSET] \2\  ..............           2,500          +2,500
    Reuse Technology Adoption Program \2\.......................  ..............           3,000          +3,000
Joint Warfighting Program.......................................          23,700          19,100          -4,600
    Program reduction...........................................  ..............          -4,600          -4,600
Command, control, and communications systems....................         200,100         177,000         -23,100
    Dynamic Data Bases Program growth...........................  ..............          -5,000          -5,000
    Joint Forward Air Component Commander [JFACC] acceleration..  ..............          -5,800          -5,800
    Dynamic multiuser information fusion [DMIF].................  ..............          -8,000          -8,000
    JSIMS Program reduction.....................................  ..............          -4,300          -4,300
Sensor and guidance technology..................................         213,154         233,054         +19,900
    Enhanced global positioning receiver [GPX]..................  ..............          -5,600          -5,600
    Low cost cruise missile defense airframe design and                                                         
     integration................................................  ..............          -7,500          -7,500
    Air directed surface-to-air missile demonstra-  tion \3\....  ..............          30,000         +30,000
    Large millimeter telescope \2\..............................  ..............           3,000          +3,000
Land warfare technology.........................................         108,490          93,490         -15,000
    Reconnaissance, surveillance, and targeting vehi-  cle......  ..............          -9,000          -9,000
    Tactical mobile robots acceleration.........................  ..............          -3,000          -3,000
    Situation Awareness System Program growth...................  ..............          -3,000          -3,000
Joint Wargaming Simulation Management Office....................          70,696          61,496          -9,200
    Program reduction...........................................  ..............          -9,200          -9,200
Physical security equipment.....................................          31,792          25,792          -6,000
    Program reduction...........................................  ..............          -6,000          -6,000
Industrial capabilities assessments.............................           2,937  ..............          -2,937
    Program reduction...........................................  ..............          -2,937          -2,937
----------------------------------------------------------------------------------------------------------------
\1\ Program adjustment recommended as described under the heading ``Authorization adjustments.''                
\2\ Increase reflects Committee recommendations as outlined in the ``Program and project increases'' heading of 
  this report section.                                                                                          
\3\ Recommended increase as outlined in the discussion section of this report heading.                          

    Program and project funding increases.--The Committee 
recommends the addition or designation of funds for the 
following projects and programs to reflect congressional 
priorities; to rectify shortfalls in the budget request for 
activities; to implement increases endorsed and/or requested by 
representatives of the Department of Defense [DOD] to address 
budget shortfalls; and to effect funding transfers recommended 
by the Committee or DOD.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
University research initiatives.................................         216,320         219,320          +3,000
    Southern Observatory for Astronomical Research [SOAR].......  ..............           3,000          +3,000
    Anticorrosion research on aluminum clad systems used in                                                     
     aircraft fleets............................................  ..............         (1,250)  ..............
    Defense Experimental Program to Stimulate Competitive                                                       
     Research [DEPSCoR] \1\.....................................  ..............        (20,000)  ..............
    Software quality and productivity...........................  ..............         (1,300)  ..............
Tactical technology.............................................         188,995         192,995          +4,000
    Center of Excellence for Research in Ocean Sciences [CEROS].  ..............           7,000          +7,000
    Simulation-based design.....................................  ..............           5,000          +5,000
    Microadaptive flow control..................................  ..............          -3,000          -3,000
    Counterartillery force protection...........................  ..............          -5,000          -5,000
Materials and electronics technology............................         244,408         271,408         +27,000
    Multitechnology integration in mixed-mode electronics [MIME]                                                
     \1\........................................................  ..............           8,000          +8,000
    3-D diamond electronics.....................................  ..............           9,000          +9,000
    Seamless high off chip connectivity [SHOCC].................  ..............           8,000          +8,000
    Cryogenic/superconducting electronics.......................  ..............           8,000          +8,000
    Electromagnetic pulse [EMP].................................  ..............           2,000          +2,000
    Sonoelectronics.............................................  ..............          -8,000          -8,000
Explosives demilitarization technology..........................          11,650          14,850          +3,200
    Program increase............................................  ..............           2,000          +2,000
    Demilitarization advanced cutting technology................  ..............           1,200          +1,200
Advanced electronics technologies...............................         244,737         261,337         +16,600
    Advanced lithography \1\....................................  ..............          10,000         +10,000
    Defense Techlink Center.....................................  ..............           1,000          +1,000
    Center for Advanced Microstructures and Devices [CAMD]......  ..............           4,000          +4,000
    Mask research and development...............................  ..............          10,000         +10,000
    Molecular Level Printing Program acceleration...............  ..............          -3,300          -3,300
    Submarine sensor suite development..........................  ..............          -5,100          -5,100
CALS initiative.................................................           1,863           6,863          +5,000
    IDE \1\.....................................................  ..............           5,000          +5,000
Humanitarian demining...........................................          17,234          19,234          +2,000
    Humanitarian demining.......................................  ..............           2,000          +2,000
Defense reconnaissance support activities (space)...............          40,504          48,504          +8,000
    Pacific Disaster Center.....................................  ..............           8,000          +8,000
Special operations tactical systems development.................         106,238         113,238          +7,000
    Special operations intelligence vehicle.....................  ..............           5,000          +5,000
    Light vehicle intercom system...............................  ..............           2,000          +2,000
----------------------------------------------------------------------------------------------------------------
\1\ Program adjustment recommended as described under the heading ``Authorization adjustments.''                

    Program transfers.--The Committee recommends the following 
funding adjustments to effect funding transfers requested by 
the Department of Defense, to align programs in the proper 
development category, to better link specific development 
projects with related efforts, or to restore funds to the 
traditional funding line in the budget.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Maritime technology.............................................          15,000  ..............         -15,000
Tactical unmanned aerial vehicles...............................          37,192  ..............         -37,192
Endurance unmanned aerial vehicles..............................         178,668  ..............        -178,668
    Dark Star termination.......................................  ..............         -52,518         -52,518
Airborne reconnaissance systems.................................         162,666          15,000        -147,666
Manned reconnaissance systems...................................          10,840           5,874          -4,966
Distributed common ground systems...............................          34,985           4,200         -30,785
DARP integration and support....................................          15,701  ..............         -15,701
----------------------------------------------------------------------------------------------------------------

    Authorization adjustments.--The Committee recommends the 
following adjustments based on the recommendations reported in 
the Senate bill authorizing programs and activities of the 
Department of Defense [DOD] for fiscal year 1999.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Chemical and Biological Defense Program.........................          25,282          30,282          +5,000
    Chemical and biological agent detection sensors.............  ..............           5,000          +5,000
Medical free electron laser.....................................           9,706          16,706          +7,000
    MFEL........................................................  ..............           7,000          +7,000
Biological warfare defense......................................          88,000          82,500          -5,500
    Program reduction...........................................  ..............          -7,000          -7,000
    Biological warfare multimedia demonstration.................  ..............           1,500          +1,500
Chemical and Biological Defense Program.........................          57,683          66,683          +9,000
    Chemical and biological agent detection sensors.............  ..............           5,000          +5,000
    Safeguard...................................................  ..............           4,000          +4,000
Integrated command and control technology.......................          34,000          42,000          +8,000
    High-definition systems.....................................  ..............           8,000          +8,000
WMD-related technologies........................................         203,598         221,598         +18,000
    Nuclear weapons effects technology base.....................  ..............          10,000         +10,000
    Thermionics.................................................  ..............           5,000          +5,000
    Deep Digger.................................................  ..............           3,000          +3,000
Counterterror technical support.................................          35,813          40,813          +5,000
    Facial recognition technology...............................  ..............           4,000          +4,000
    Pulsed fast neutron analysis \1\............................  ..............           1,000          +1,000
Counterproliferation support--adv dev...........................          70,611          77,611          +7,000
    HAARP.......................................................  ..............           3,000          +3,000
    Counterproliferation analysis planning system [CAPS] \1\....  ..............           4,000          +4,000
Generic logistics R&D technology demonstrations.................          17,788          21,788          +4,000
    Computer-assisted technology transfer [CATT]................  ..............           4,000          +4,000
Advanced concept technology demonstrations......................         116,330         110,330          -6,000
    Program reduction...........................................  ..............          -6,000          -6,000
High-Performance Computing Modernization Program................         140,927         163,927         +23,000
    Operation and upgrade of supercomputing centers purchased                                                   
     with research, development, test, and evaluation funds.....  ..............          20,000         +20,000
    High-Performance Visualization Center.......................  ..............           3,000          +3,000
Advanced sensor applications program............................          15,147          17,147          +2,000
    HAARP.......................................................  ..............           2,000          +2,000
NATO research and development...................................          10,762           8,462          -2,300
    Program reduction...........................................  ..............          -2,300          -2,300
Joint Robotics Program--eng dev.................................          11,307          18,307          +7,000
    Joint robotics technology...................................  ..............           6,000          +6,000
    Robotic combat support system [RCSS] with flail-head for                                                    
     demining...................................................  ..............           1,000          +1,000
Classified programs--C\3\I......................................             439           6,439          +6,000
    Program increase............................................  ..............           6,000          +6,000
Defense technology analysis.....................................           5,010           8,010          +3,000
    Commodity management system consolidation...................  ..............           3,000          +3,000
Defense technical information services [DTIC]...................          46,469          45,469          -1,000
    Program reduction...........................................  ..............          -1,000          -1,000
Classified programs.............................................       1,057,100       1,148,000         +91,000
    Program increase............................................  ..............          91,000         +91,000
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project increases'' heading of 
  this report section.                                                                                          

                     COMMITTEE RECOMMENDED PROGRAM

    The following table details the Committee recommendations 
in comparison to the budget request:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
    RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, DEFENSE-WIDE                                                   
                                                                                                                
BASIC RESEARCH:                                                                                                 
    IN-HOUSE LABORATORY INDEPENDENT RESEARCH....................           2,173           2,173  ..............
    DEFENSE RESEARCH SCIENCES...................................          65,102          65,102  ..............
    UNIVERSITY RESEARCH INITIATIVES.............................         216,320         219,320          +3,000
    GULF WAR ILLNESS............................................          19,646          19,646  ..............
    GOVERNMENT/INDUSTRY COSPONSORSHIP OF UNIVERSITY RE-  SEARCH.           9,870           9,870  ..............
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....................          25,282          30,282          +5,000
                                                                 -----------------------------------------------
      TOTAL, BASIC RESEARCH.....................................         338,393         346,393          +8,000
                                                                 ===============================================
APPLIED RESEARCH:                                                                                               
    NEXT GENERATION INTERNET....................................          40,000          30,000         -10,000
    SUPPORT TECHNOLOGIES--APPLIED RESEARCH......................          86,866         100,866         +14,000
    MEDICAL FREE ELECTRON LASER.................................           9,706          16,706          +7,000
    HISTORICALLY BLACK COLLEGES AND UNIVERSITIES................  ..............  ..............  ..............
    LINCOLN LABORATORY RESEARCH PROGRAM.........................          19,641          19,641  ..............
    COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY.............         417,723         346,323         -71,400
    BIOLOGICAL WARFARE DEFENSE..................................          88,000          82,500          -5,500
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....................          57,683          66,683          +9,000
    TACTICAL TECHNOLOGY.........................................         188,995         192,995          +4,000
    INTEGRATED COMMAND AND CONTROL TECHNOLOGY...................          34,000          42,000          +8,000
    MATERIALS AND ELECTRONICS TECHNOLOGY........................         244,408         271,408         +27,000
    WMD RELATED TECHNOLOGIES....................................         203,598         221,598         +18,000
    DEFENSE SPECIAL WEAPONS AGENCY..............................  ..............  ..............  ..............
    MEDICAL TECHNOLOGY..........................................           9,239           9,239  ..............
    COMMAND AND CONTROL RESEARCH................................           1,961           1,961  ..............
                                                                 -----------------------------------------------
      TOTAL, APPLIED RESEARCH...................................       1,401,820       1,401,920            +100
                                                                 ===============================================
ADVANCED TECHNOLOGY DEVELOPMENT:                                                                                
    MEDICAL ADVANCED TECHNOLOGY.................................           2,136           2,136  ..............
    EXPLOSIVES DEMILITARIZATION TECHNOLOGY......................          11,650          14,850          +3,200
    DEMINING....................................................  ..............  ..............  ..............
    ALTERNATIVE TO LANDMINES....................................           4,753           4,753  ..............
    COUNTERTERROR TECHNICAL SUPPORT.............................          35,813          40,813          +5,000
    COUNTERPROLIFERATION SUPPORT--ADV DEV.......................          70,611          77,611          +7,000
    COUNTERPROLIFERATION SUPPORT--ADV DEV.......................  ..............  ..............  ..............
    SUPPORT TECHNOLOGIES--ADVANCED TECHNOLOGY DEVELOP-  MENT....         166,676         299,676        +133,000
    JOINT DOD-DOE MUNITIONS TECHNOLOGY DEVELOPMENT..............          13,447          13,447  ..............
    AUTOMATIC TARGET RECOGNITION................................           5,081           5,081  ..............
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--ADVANCED DEV.......          42,762          42,762  ..............
    SPECIAL TECHNICAL SUPPORT...................................          11,337          11,337  ..............
    VERIFICATION TECHNOLOGY DEMONSTRATION.......................          63,052          63,052  ..............
    VERIFICATION TECHNOLOGY DEMONSTRATION.......................  ..............  ..............  ..............
    GENERIC LOGISTICS R&D TECHNOLOGY DEMONSTRATIONS.............          17,788          21,788          +4,000
    STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM....................  ..............  ..............  ..............
    JOINT WARFIGHTING PROGRAM...................................          23,700          19,100          -4,600
    AGILE PORT DEMONSTRATION....................................  ..............  ..............  ..............
    COOPERATIVE DOD/VA MEDICAL RESEARCH.........................  ..............  ..............  ..............
    ADVANCED ELECTRONICS TECHNOLOGIES...........................         244,737         261,337         +16,600
    MARITIME TECHNOLOGY.........................................          15,000  ..............         -15,000
    ELECTRIC VEHICLES...........................................  ..............  ..............  ..............
    ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS..................         116,330         110,330          -6,000
    COMMERCIAL TECHNOLOGY INSERTION PROGRAM.....................  ..............  ..............  ..............
    ELECTRONIC COMMERCE RESOURCE CENTERS........................  ..............  ..............  ..............
    HIGH PERFORMANCE COMPUTING MODERNIZATION PROGRAM............         140,927         163,927         +23,000
    COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS.................         200,100         177,000         -23,100
    COMMUNICATION AND SIMULATION TECHNOLOGY.....................          56,114          56,114  ..............
    SENSOR AND GUIDANCE TECHNOLOGY..............................         213,154         233,054         +19,900
    MARINE TECHNOLOGY...........................................          24,788          24,788  ..............
    LAND WARFARE TECHNOLOGY.....................................         108,490          93,490         -15,000
    CLASSIFIED DARPA PROGRAMS...................................          55,500          55,500  ..............
    JOINT STRIKE FIGHTER (JSF)--DEM/VAL.........................  ..............  ..............  ..............
    DUAL USE APPLICATIONS PROGRAMS..............................  ..............  ..............  ..............
    DUAL USE APPLICATION PROGRAMS...............................           6,000           6,000  ..............
    JOINT WARGAMING SIMULATION MANAGEMENT OFFICE................          70,696          61,496          -9,200
                                                                 -----------------------------------------------
      TOTAL, ADVANCED TECHNOLOGY DEVELOPMENT....................       1,720,642       1,859,442        +138,800
                                                                 ===============================================
DEMONSTRATION & VALIDATION:                                                                                     
    PHYSICAL SECURITY EQUIPMENT.................................          31,792          25,792          -6,000
    INTEGRATED DIAGNOSTICS......................................           3,436           3,436  ..............
    JOINT ROBOTICS PROGRAM......................................          16,217          16,217  ..............
    ADVANCED SENSOR APPLICATIONS PROGRAM........................          15,147          17,147          +2,000
    CALS INITIATIVE.............................................           1,863           6,863          +5,000
    NATO RESEARCH AND DEVELOPMENT...............................  ..............  ..............  ..............
    NATO RESEARCH AND DEVELOPMENT...............................          10,762           8,462          -2,300
    ENVIRONMENTAL SECURITY TECHNICAL CERTIFICATION PROGRAM......          17,051          17,051  ..............
    ALL SERVICE COMBAT IDENTIFICATION EVALUATION TEAM...........          13,014          13,014  ..............
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD..............         497,752         497,752  ..............
    NAVY THEATER WIDE...........................................         190,446         295,446        +105,000
    MEADS CONCEPTS--DEM/VAL.....................................          43,027          10,027         -33,000
    BOOST PHASE INTERCEPT THEATER MISSILE DEFENSE ACQUISIT......  ..............          10,000         +10,000
    NATIONAL MISSILE DEFENSE--DEM/VAL...........................         950,473         950,473  ..............
    JOINT THEATER MISSILE DEFENSE--DEM/VAL......................         176,846         209,346         +32,500
    FAMILY-OF SYSTEMS ENGINEERING AND INTEGRATION...............          96,915          96,915  ..............
    BMD TECHNICAL OPERATIONS....................................         190,147         192,147          +2,000
    INTERNATIONAL COOPERATIVE PROGRAMS..........................          50,676          62,676         +12,000
    THREAT AND COUNTERMEASURES..................................          22,113          25,113          +3,000
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--DEM/VAL............          60,404          60,404  ..............
    ASAT........................................................  ..............  ..............  ..............
    HUMANITARIAN DEMINING.......................................          17,234          19,234          +2,000
    TECHNICAL STUDIES, SUPPORT AND ANALYSIS.....................             980             980  ..............
    CRITICAL TECHNOLOGY SUPPORT.................................           2,618           2,618  ..............
                                                                 -----------------------------------------------
      TOTAL, DEMONSTRATION & VALIDATION.........................       2,408,913       2,541,113        +132,200
                                                                 ===============================================
ENGINEERING & MANUFACTURING DEVEL:                                                                              
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--EMD................         125,312         125,312  ..............
    JOINT ROBOTICS PROGRAM--ENG DEV.............................          11,307          18,307          +7,000
    ADVANCED IT SERVICES JOINT PROGRAM OFFICE (AITS-JPO)........          15,588          15,588  ..............
    JOINT TACTICAL INFORMATION DISTRIBUTION SYSTEM (JTIDS)......          30,512          30,512  ..............
    COMMERCIAL OPERATIONS AND SUPPORT SAVINGS INITIATIVE........          13,410          13,410  ..............
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD--EMD.........         323,942  ..............        -323,942
    PATRIOT PAC-3 THEATER MISSILE DEFENSE ACQUISITION--EM.......         137,265         182,265         +45,000
    NAVY AREA THEATER MISSILE DEFENSE--EMD......................         245,796         245,796  ..............
                                                                 -----------------------------------------------
      TOTAL, ENGINEERING & MANUFACTURING DEVELOPMENT............         903,132         631,190        -271,942
                                                                 ===============================================
RDT&E MANAGEMENT SUPPORT:                                                                                       
    UNEXPLODED ORDNANCE DETECTION AND CLEARANCE.................           1,273           1,273  ..............
    ASSESSMENTS AND EVALUATIONS.................................           3,916           3,916  ..............
    TECHNICAL STUDIES, SUPPORT AND ANALYSIS.....................          30,021          30,021  ..............
    USD(A&T)--CRITICAL TECHNOLOGY SUPPORT.......................  ..............  ..............  ..............
    BLACK LIGHT.................................................           5,000           5,000  ..............
    FOREIGN MATERIAL ACQUISITION AND EXPLOITATION...............          35,035          35,035  ..............
    INDUSTRIAL CAPABILITIES ASSESSMENTS.........................           2,937  ..............          -2,937
    JOINT THEATER AIR AND MISSILE DEFENSE ORGANIZATION..........          17,423          17,423  ..............
    CLASSIFIED PROGRAMS.........................................          13,755          13,755  ..............
    CLASSIFIED PROGRAM USD(P)...................................  ..............  ..............  ..............
    COUNTERPROLIFERATION SUPPORT................................           9,874           9,874  ..............
    COUNTERPROLIFERATION SUPPORT................................  ..............  ..............  ..............
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....................          24,922          24,922  ..............
    CLASSIFIED PROGRAMS--C\3\I..................................             439           6,439          +6,000
    SMALL BUSINESS INNOVATION RESEARCH ADMINISTRATION...........           1,820           1,820  ..............
    DEFENSE TECHNOLOGY ANALYSIS.................................           5,010           8,010          +3,000
    DEFENSE TECHNICAL INFORMATION SERVICES (DTIC)...............          46,469          45,469          -1,000
    DEFENSE TECHNICAL INFORMATION CENTER........................  ..............  ..............  ..............
    R&D IN SUPPORT OF DOD ENLISTMENT, TESTING AND EVAL..........           8,248           8,248  ..............
    MANAGEMENT HEADQUARTERS (RESEARCH AND DEVELOPMENT)..........          38,611          38,611  ..............
    C\3\I INTELLIGENCE PROGRAMS.................................           1,657           1,657  ..............
                                                                 -----------------------------------------------
      TOTAL, RDT&E MANAGEMENT SUPPORT...........................         246,410         251,473          +5,063
                                                                 ===============================================
OPERATIONAL SYSTEMS DEVELOPEMENT:                                                                               
    C\3\ INTEROPERABILITY.......................................          26,296          26,296  ..............
    JOINT ANALYTICAL MODEL IMPROVEMENT PROGRAM..................           1,847           1,847  ..............
    NATIONAL MILITARY COMMAND SYSTEM-WIDE SUPPORT...............           1,189           1,189  ..............
    DEFENSE INFO INFRASTRUCTURE ENGINEERING AND INTEGRATION.....           4,975           4,975  ..............
    LONG-HAUL COMMUNICATIONS (DCS)..............................          11,561          11,561  ..............
    SUPPORT OF THE NATIONAL COMMUNICATIONS SYSTEM...............           4,428           4,428  ..............
    MINIMUM ESSENTIAL EMERGENCY COMMUNICATIONS NETWORK..........           3,061           3,061  ..............
    INFORMATION SYSTEMS SECURITY PROGRAM........................         239,081         239,081  ..............
    C\4\I FOR THE WARRIOR.......................................           2,819           2,819  ..............
    C\4\I FOR THE WARRIOR.......................................           3,675           3,675  ..............
    JOINT SPECTRUM CENTER.......................................           8,839           8,839  ..............
    DEFENSE IMAGERY AND MAPPING PROGRAM.........................         114,417         114,417  ..............
    FOREIGN COUNTERINTELLIGENCE ACTIVITIES......................             418             418  ..............
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.....................  ..............  ..............  ..............
    DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES (SPACE)...........          40,504          48,504          +8,000
    JOINT C\4\ISR BATTLE CENTER (JBC)...........................  ..............  ..............  ..............
    C\3\I INTELLIGENCE PROGRAMS.................................           8,015           8,015  ..............
    TACTICAL UNMANNED AERIAL VEHICLES...........................          37,192  ..............         -37,192
    ENDURANCE UNMANNED AERIAL VEHICLES..........................         178,668  ..............        -178,668
    AIRBORNE RECONNAISSANCE SYSTEMS.............................         162,666          15,000        -147,666
    MANNED RECONNAISSANCE SYSTEMS...............................          10,840           5,874          -4,966
    MANNED RECONNAISSANCE SYSTEMS...............................           4,085           4,085  ..............
    DISTRIBUTED COMMON GROUND SYSTEMS...........................          34,985           4,200         -30,785
    DARP INTEGRATION AND SUPPORT................................          15,701  ..............         -15,701
    TACTICAL CRYPTOLOGIC ACTIVITIES.............................         104,510         104,510  ..............
    MANAGEMENT HEADQUARTERS (AUXILIARY FORCES)..................  ..............  ..............  ..............
    INDUSTRIAL PREPAREDNESS.....................................          26,231          26,231  ..............
    MANAGEMENT HEADQUARTERS (OJCS)..............................           9,617           9,617  ..............
    JOINT SIMULATION SYSTEM.....................................          24,775          24,775  ..............
    PARTNERSHIP FOR PEACE ACTIVITIES............................           1,957           1,957  ..............
    SMALL BUSINESS INNOVATIVE RESEARCH/SMALL BUS TECH TRAN......  ..............  ..............  ..............
    SPECIAL OPERATIONS TECHNOLOGY DEVELOPMENT...................           4,026           4,026  ..............
    SPECIAL OPERATIONS ADVANCED TECHNOLOGY DEVELOPMENT..........           8,020           8,020  ..............
    SPECIAL OPERATIONS TACTICAL SYSTEMS DEVELOPMENT.............         106,238         113,238          +7,000
    SPECIAL OPERATIONS INTELLIGENCE SYSTEMS DEVELOPMENT.........           1,805           1,805  ..............
    SOF MEDICAL TECHNOLOGY DEVELOPMENT..........................           2,015           2,015  ..............
    SOF OPERATIONAL ENHANCEMENTS................................          33,799          33,799  ..............
    CERP........................................................  ..............  ..............  ..............
    CLASSIFIED PROGRAMS.........................................       1,057,100       1,163,100        +106,000
    ECONOMIC ASSUMPTIONS........................................  ..............  ..............  ..............
                                                                 -----------------------------------------------
      TOTAL, OPERATIONAL SYSTEMS DEVELOPEMENT...................       2,295,355       2,001,377        -293,978
                                                                 ===============================================
      TOTAL, RESEARCH, DEVELOPMENT, TEST, AND EVALUATION,                                                       
       DEFENSE-WIDE.............................................       9,314,665       9,032,908        -281,757
----------------------------------------------------------------------------------------------------------------

               Developmental Test and Evaluation, Defense

Appropriations, 1998....................................    $258,183,000
Budget estimate, 1999...................................     251,106,000
Committee recommendation................................     249,106,000

    The Committee recommends an appropriation of $249,106,000 
for the ``Developmental test and evaluation, defense'' account, 
a decrease of $2,000,000 from the budget request.

                    Committee Recommended Adjustment

    Authorization adjustment.--The Committee recommends the 
following adjustment based on the recommendations reported in 
the Senate bill authorizing programs and activities of the 
Department of Defense [DOD] for fiscal year 1999.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Developmental test and evaluation...............................          96,253          94,253          -2,000
    Program reduction...........................................  ..............          -2,000          -2,000
----------------------------------------------------------------------------------------------------------------

                Operational Test and Evaluation, Defense

Appropriations, 1998....................................     $31,384,000
Budget estimate, 1999...................................      25,245,000
Committee recommendation................................      25,245,000

    The Committee recommends an appropriation of $25,245,000 
for the ``Operational test and evaluation, defense'' account.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

    The Committee recommends appropriations totaling 
$669,566,000 for title V, revolving and management funds. This 
is $251,400,000 above the budget request.
    The Committee provides funding for the defense working 
capital fund and the national defense sealift fund under this 
heading.

              defense working capital funding adjustments

Appropriations, 1998....................................    $971,952,000
Budget estimate, 1999...................................      94,500,000
Committee recommendation................................      94,500,000

    On May 18, 1998, the administration submitted a budget 
amendment that would allow the Secretary of Defense to transfer 
up to $350,000,000 from the national defense stockpile 
transaction fund to the defense working capital funds, 
providing that the amounts transferred be returned to the 
stockpile fund not later than September 30, 1999. The Committee 
has included $151,000,000 in transfer authority to support this 
emergent requirement.

                     national defense sealift fund

Appropriations, 1998....................................  $1,074,948,000
Budget estimate, 1999...................................     418,166,000
Committee recommendation................................     669,566,000

    This appropriation provides funds for the lease, operation, 
and supply of prepositioning ships; operation of the Ready 
Reserve Force; acquisition of large medium speed roll-on/roll-
off ships for the Military Sealift Command; and acquisition of 
ships for the Ready Reserve Force.
    The budget includes $335,000,000 for Ready Reserve Force 
and $83,166,000 for acquisition activities in fiscal year 1999.

                           Other adjustments

    The Committee recommends incorporating the following 
adjustments to the budget estimate, in accordance with the 
Senate authorization committee action:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1999 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Acquisition.....................................................          83,166         334,566        +251,400
----------------------------------------------------------------------------------------------------------------


                                TITLE VI

               OTHER DEPARTMENT OF DEFENSE APPROPRIATIONS

           Chemical Agents and Munitions Destruction, Defense

Appropriations, 1998....................................    $600,700,000
Budget estimate, 1999...................................     855,100,000
Committee recommendation................................     780,150,000

    The Committee recommends an appropriation of $780,150,000 
for the ``Chemical agents and munitions destruction, defense'' 
account for fiscal year 1999, a decrease of $74,950,000 from 
the budget estimate.
    The Chemical Stockpile Disposal Program provides resources 
to develop and test monitoring and disposal technology; equip, 
operate, and maintain disposal facilities; provide 
transportation of chemical agents and munitions onsite for 
disposal; dispose of all chemical agent destruction waste 
products; and decontaminate and dismantle all disposal 
equipment at the conclusion of toxic operations.

                       committee recommendations

              budget activity 1--research and development

    Research and development.--The fiscal year 1999 budget 
request includes $182,780,000 for the development of 
alternative technologies to incineration for disposal of 
chemical agents and the design, acquisition and testing of 
prototype equipment for the recovery and treatment of the 
nonstockpile chemical materiel. The Committee recommends 
$172,780,000, a decrease of $10,000,000 below the budget 
request as recommended by the Senate Armed Services Committee. 
The Committee provides an additional $5,000,000 to accelerate 
the development and fielding of the Army's mobile munitions 
assessment system.

                     budget activity 2--procurement

    Procurement.--The Department requested $140,670,000 for the 
procurement of process and support equipment used for the 
baseline destruction of chemical munitions in the stockpile, 
chemical stockpile emergency preparedness project [CSEPP] 
equipment, and the nonstockpile chemical material project 
[NSCMP] equipment. Also included are costs for initial spares, 
freight, software, maintenance and operations manuals relating 
to specific equipment, and design changes during construction 
and installation.
    The Committee recommends providing $115,670,000 for 
procurement activities in fiscal year 1999, a reduction of 
$25,000,000 from the budget request as authorized by the Senate 
Armed Services Committee.

             budget activity 3--operations and maintenance

    Operation and maintenance.--The fiscal year 1999 budget 
request includes $531,650,000 for operations and maintenance 
funds for management, technical, and operational, support 
required for demilitarization of the chemical stockpile, 
emergency response activities, and support to the Nonstockpile 
Chemical Material Program. The Committee recommends providing 
$491,700,000 a decrease of $40,000,000 below the budget request 
as recommended by the Senate Armed Services Committee.

                         Defense Health Program

Appropriations, 1998.................................... $10,369,075,000
Budget estimate, 1999...................................  10,055,822,000
Committee recommendation................................  10,337,322,000

    The Committee's recommendation for the Defense Health 
Program [DHP] provides $10,337,322,000, an amount $281,500,000 
above the budget request.

                    MEDICAL RESEARCH AND DEVELOPMENT

    The Committee lauds the medical research and development 
activities conducted by the Department of Defense. To better 
reflect the funds allocated to the Department of Defense for 
medical programs, the Committee has included the funding 
provided to the Department for medical research in the Defense 
Health Program.
    The Committee provides a total of $250,000,000 for medical 
research activities conducted by the Department. Of this 
amount, the Committee directs that not less than $135,000,000 
be available for peer review breast cancer research and not 
less than $40,000,000 be available for peer review prostate 
cancer research. The remaining funds are to be used for peer 
review medical research grants and activities that focus on 
issues pertinent to our military forces. Such efforts would 
include breast cancer; prostate cancer; diabetes; alcoholism 
research; sleep management; chemical weapons treatment; dental; 
DOD/VA medical research; dystrophic epidermolysis bullosa; 
disease management; emergency telemedicine; excel hematopoietic 
brain stem cell separation, cleansing, and enrichment 
technology; healthcare information protection; lung research; 
laser eye injury/eye cancer research and treatment; minimally 
invasive therapy; mustard gas antidote; national biodynamics; 
neurofibromatosis; nutrition; osteoporosis and bone-related 
diseases; ovarian cancer; prostate diagnostic imaging; retinal 
display technology for cardiovascular research; smoking 
cessation; digital mammography; and telemedicine. The Committee 
directs the Deputy Secretary of Defense work with the Surgeons 
General of the services to establish a medical research program 
that satisfies military objectives in this area.

                      OTHER COMMITTEE ADJUSTMENTS

    Digital mobile mammography.--The Committee continues to 
support this vital component of breast cancer research and 
encourages the Department to continue its efforts in this area.
    Uniformed Services University of Health Sciences [USUHS].--
The Committee recommends an addition of $8,310,000 to continue 
meeting funding requirements for USUHS within overall Defense 
Health Program funding.
    Graduate school of nursing.--The Committee recommends 
$2,300,000 for use in support of the graduate school of nursing 
advanced nursing programs that continue to contribute to 
readiness and the cost-effective health care delivery missions 
of the uniformed services.
    Pacific Island Health Care Program.--The Committee 
recommendation includes $5,000,000 in support of health care 
services to Pacific islanders.
    Cancer Control Program.--The Committee has provided 
$5,600,000 only to continue efforts of the Coastal Cancer 
Control Program.
    Center for Disaster Management [CDMHA] and the Casualty 
Care Research Center [CCRC].--The Committee suggests that 
$760,000 be provided from the Center of Excellence in Disaster 
Management funding to develop and expand distributed and 
distance learning, training, education, consultation, and 
technology transfer in the application of remotely deployed 
medicine for disaster needs assessment, clinical and logistical 
consultation, and data acquisition for evidence-based 
improvements in provision of services in domestic and 
international, military, and civilian setting.
    Alaska Federal Health Care Partnership [AFHCAN].--In order 
to better serve Federal beneficiaries, including active and 
retired military personnel, in remote areas of Alaska, a 
telemedicine network is being created that will link Indian 
Health Services, U.S. Coast Guard, Department of Defense, and 
Veterans Affairs sites. The Committee has provided $1,900,000 
to fund the Department's portion of this initiative.
    Postdoctoral education.--The Department is encouraged to 
increase postdoctoral training efforts for psychologists in 
those military medical centers where independent departments of 
psychology exist.
    Emergency medical care for children [EMCC].--The Committee 
is pleased with the progress of the Emergency Medical Services 
Program in Hawaii and urges the Tripler Army Medical Center to 
collaborate with EMCC in developing telehealth initiatives for 
prevention and treatment of ill and injured children and the 
education of emergency personnel in remote and rural areas.
    Army Institute of Behavioral and Social Sciences [ARI].--
The Committee urges the Defense Health Program to provide a 
total of $21,400,000 for ARI, the same funding level as fiscal 
year 1998.
    Air Force Research Laboratory [AFRL].--The Committee 
recommends $11,000,000 within the Defense Health Program 
resources to ensure that this program continues at last year's 
funding level.
    Defense Women's Health Research Program.--The Committee 
recognizes the importance of this issue and encourages the 
Department to support research in this area.
    Military nursing programs.--The Committee recommends 
$5,000,000 to support studies related to health maintenance and 
promotion, particularly in the operational setting, domestic 
violence, alternative health care delivery models, and 
enhancement of military nursing. The Committee encourages the 
Department to allot a portion of these funds for telemedicine/
telenursing initiatives at Tripler Army Medical Center.
    Disaster management training.--The Committee recommends 
$5,000,000 for the continuation of the Center of Excellence in 
Disaster Management and Humanitarian Assistance Program with 
Tripler Army Medical Center.
    Hepatitis C virus [HCV].--The Committee recommends that the 
Department conduct tests for HCV in all routine blood tests 
that are conducted for Active and Reserve personnel and screen 
Active and Reserve personnel who are separating or retiring 
from active duty for serologic evidence of hepatitis C 
infection.
    VA/DOD distance learning project.--The Committee urges the 
DOD to continue the VA/DOD distance learning pilot project to 
transition clinical nurse specialists to the role of nurse 
practitioners. To date, this effort has graduated 38 adult 
nurse practitioners.
    Dental research.--The Committee is pleased with the 
progress of dental research in the services and encourages the 
continuation of programs which advance the preventative and 
reconstructive applications of military dentistry.
    Military health services information management system.--
The Committee has provided an additional $10,000,000 to 
continue the force health protection system that will 
eventually be an integral part of the computerized medical 
record.
    Uniformed services treatment facilities [USTF's].--The 
Committee is concerned regarding quality-of-care issues 
identified within the USTF structure and does not believe that 
additional funding is warranted at this time. Therefore, the 
Committee is reducing USTF funding by $14,300,000, which is 
consistent with the fiscal year 1998 funding level.
    Brown tree snakes.--The Committee recommends $1,000,000 to 
continue efforts to prevent brown tree snakes from being 
introduced into new habitats through transportation of military 
cargo.
    PACMEDNET.--The Committee has provided $10,000,000 to 
continue this activity.
    All patient refined diagnostic related groups [APR-DRG].--
The Committee is pleased that the Department has made the APR-
DRG classification system available to all MTF's and encourages 
the Department to use APR-DRG in its TRICARE 3.0 contract for 
risk adjustment of financing, performance evaluation, and 
patient satisfaction assessment.
    Outlier payment adjustments.--The Committee notes that DOD 
is making progress in addressing children hospitals' need for 
outlier payment adjustments and encourages it to complete them 
expeditiously.

         Drug Interdiction and Counterdrug Activities, Defense

Appropriations, 1998....................................    $712,882,000
Budget estimate, 1999...................................     727,582,000
Committee recommendation................................     742,582,000

    The Committee recommends an appropriation of $742,582,000 
in title VI, Counternarcotics and Drug Interdiction Program for 
fiscal year 1999, an amount $15,000,000 above the requested 
fiscal year 1999 level.

                    Summary of Committee Adjustments

                                                            In thousands

National Guard................................................   $20,000
Gulf States initiative/Regional CD Training Academy...........     7,000
Caribbean/eastern Pacific surface interdiction................     8,000
Marijuana eradication.........................................     6,000
JIATF South...................................................   -17,000
Ground-based end-game operations--SOUTHCOM....................   -10,000
Ground-based end-game operations--Mexico......................    -6,000
Northeast Regional Counterdrug Training Center................     2,000
Counternarcotics Center at Hammer.............................     5,000

    Civil Air Patrol.--Funds made available to the Civil Air 
Patrol [CAP] in the fiscal year 1999 appropriation for Defense 
Department drug interdiction activities may be used for CAP's 
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 CAP employees; 
for travel and per diem expenses of CAP personnel in support of 
those missions; and for equipment needed for mission support or 
performance. The Air Force should waive reimbursement from 
Federal, State, and local government agencies for use of these 
funds.
    National Guard activities.--The Committee recognizes the 
valuable contributions the National Guard makes to the 
counterdrug effort and provides an additional $20,000,000.
    Marijuana eradication.--The Committee has provided an 
additional $6,000,000 for the conduct of marijuana eradication. 
These funds are to be used to address marijuana eradication 
shortfalls in the two States having the highest rate of outdoor 
cannabis cultivation as set forth in a 1996 report prepared by 
the DEA's Strategic Detection Unit of the domestic intelligence 
section.
    Gulf States counterdrug initiative.--The Committee has 
provided an additional $7,000,000 to support the Gulf States 
counterdrug initiative and the Regional Counterdrug Training 
Academy [RCTA]. The Committee directs that management of and 
funding for this program, with the exception of the RCTA, is to 
be transferred to the Joint Military Intelligence Program 
[JMIP].
    Riverine activities.--The Committee directs that $4,000,000 
of the funds provided for riverine activities be used to 
acquire RU 38B aircraft and sensors for riverine and coastal 
drug interdiction activities.
    Northeast Regional Counterdrug Training Center.--The 
Committee has provided $2,000,000 to establish a Northeast 
Regional Counterdrug Training Center. The Committee believes 
that an additional center will alleviate the overcrowding at 
and waiting lists for attendance at similar centers in other 
areas of the country. The Committee recognizes that Fort 
Indiantown Gap in Pennsylvania is uniquely suited to host such 
a counterdrug training center.
    Simulation-based counterdrug interoperability training 
module.--The Committee believes that distance learning and 
technology can be employed to allow for realistic training 
experiences without diverting operational resources from field 
service. For this reason, the Committee has provided $5,000,000 
for the purpose of creating a simulation-based counterdrug 
interoperability training module at Volpentest Hammer Training 
and Education Center.

                    Office of the Inspector General

Appropriations, 1998....................................    $138,380,000
Budget estimate, 1999...................................     132,064,000
Committee recommendation................................     132,064,000

    The Committee recommends an appropriation of $132,064,000 
for fiscal year 1999.

                               TITLE VII

                            RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

Appropriations, 1998....................................    $196,900,000
Budget estimate, 1999...................................     201,500,000
Committee recommendation................................     201,500,000

    The Committee recommends $201,500,000, the budget request 
for the Central Intelligence Agency [CIA] retirement and 
disability system fund. The CIA Retirement Act of 1984 for 
Certain Employees (Public Law 88-643) authorized the 
establishment of a CIA retirement and disability system for a 
limited number of CIA employees and authorized the 
establishment and maintenance of a fund from which benefits 
would be paid to qualified beneficiaries.

                       Community Management Staff

Appropriations, 1998....................................    $121,080,000
Budget estimate, 1999...................................     138,623,000
Committee recommendation................................     134,623,000

    The Committee recommends $134,623,000 for the community 
management staff.

                 National Security Education Trust Fund

Appropriations, 1998....................................      $2,000,000
Budget estimate, 1999...................................       5,000,000
Committee recommendation................................       3,000,000

    The Committee appropriates $3,000,000 from the national 
security education trust fund for continuation of this program.

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

Appropriations, 1998....................................     $35,000,000
Budget estimate, 1999...................................      15,000,000
Committee recommendation................................      25,000,000

    The Committee recommends $25,000,000 for the Kaho'olawe 
Island conveyance, remediation, and environmental restoration 
trust fund.
    Since its inception, the Kaho'olawe program has been 
managed by the Commander of Naval Base Pearl Harbor, under the 
general direction of the Pacific Fleet. The base commanders and 
staff have done a fine job in ensuring that the Navy's 
responsibilities were met fully and that the project was 
steered through many difficult challenges toward completion. As 
more of the work tends toward cleanup instead of the policy 
implications of how this would be achieved, the Committee 
believes that those with the greatest expertise for managing 
such operations, the Pacific Division of the Navy's Facility 
Engineering Command, should oversee day to day responsibility 
for the cleanup efforts. This does not relieve the Pacific 
Fleet of its responsibility, but recognizes that PACDIV can and 
should direct the cleanup operation. The Committee expects 
PACDIV to work closely with the Pacific Fleet Commander in 
managing this process.

                               TITLE VIII

                           GENERAL PROVISIONS

    The following lists general provisions proposed by the 
Committee. The Committee recommends inclusion of several 
proposals which have been incorporated in previous 
appropriations acts, provisions requested for inclusion by the 
Defense Department, and new provisions. The Committee 
recommendations are as follows:
    Sec. 8001. Publicity/propaganda limitation.--Retains 
provision which is carried annually in the DOD Appropriations 
Act prohibiting the use of funds for publicity or propaganda 
purposes not authorized by Congress.
    Sec. 8002. Compensation/employ of foreign nationals.--
Retains provision which is carried annually in DOD 
appropriations acts which limits salary increases for direct 
and indirect hire foreign nationals.
    Sec. 8003. Obligation rate of appropriations.--Retains an 
annual provision limiting obligation of appropriations for only 
1 year unless otherwise expressly provided.
    Sec. 8004. Obligations in last 2 months of fiscal year.--
Retains provision as addressed in previous years which controls 
end-of-year spending.
    Sec. 8005. Transfers.--The Committee retains an annual 
provision which provides transfer authority of $2,000,00,000.
    Sec. 8006. Working capital fund cash disbursements.--
Retains a provision carried in previous years.
    Sec. 8007. Special access programs notification.--Retains a 
provision carried in previous years.
    Sec. 8008. Multiyear procurement authority.--The Committee 
recommends providing multiyear authority for the following 
programs: Medium tactical vehicle replacement; E-2C aircraft; 
and Longbow Hellfire missile.
    Sec. 8009. Humanitarian and civic assistance.--Retains a 
provision carried in previous years.
    Sec. 8010. Civilian personnel ceilings.--Retains a 
provision carried in previous years.
    Sec. 8011. Overseas civilian work-years.--Retains a 
provision carried in previous years.
    Sec. 8012. Lobbying.--Retains a provision carried in 
previous years.
    Sec. 8013. Educational benefits and bonuses.--Retains a 
provision carried in previous years.
    Sec. 8014. Organizational analysis/contracting out.--
Retains a provision carried in previous years.
    Sec. 8015. Mentor-Protege Program.--Retains a provision 
carried in previous years.
    Sec. 8016. Anchor chains.--Retains a provision carried in 
previous years.
    Sec. 8017. CHAMPUS mental health benefits.--Retains a 
provision carried in previous years.
    Sec. 8018. POW/MIA family travel.--Retains a provision 
carried in previous year.
    Sec. 8019. Residual value negotiations.--Retains a 
provision requested by the administration and carried in 
previous years.
    Sec. 8020. Demilitarization of surplus firearms.--Retains a 
provision carried in previous years.
    Sec. 8021. Selective reenlistment bonus.--Retains a 
provision carried in previous years.
    Sec. 8022. Reserve component travel.--Retains a provision 
carried in previous years.
    Sec. 8023. Indian Financing Act incentives.--Retains and 
modifies a provision carried in previous years.
    Sec. 8024. Military leave for members of the Reserve 
component.--Retains a provision carried in previous years.
    Sec. 8025. A-76 studies.--Retains a provision carried in 
previous years.
    Sec. 8026. American Forces Information Service.--Retains a 
provision carried in previous years.
    Sec. 8027. Wage rate--civilian health.--Retains a provision 
carried in previous years.
    Sec. 8028. WC-130 weather reconnaissance.--Retains a 
provision carried in previous years.
    Sec. 8029. Workshops for the blind and handicapped.--
Retains a provision carried in previous years.
    Sec. 8030. CHAMPUS coordination of benefits.--Retains a 
provision carried in previous years.
    Sec. 8031. Burdensharing.--Retains a provision carried in 
previous years.
    Sec. 8032. Civil Air Patrol.--Retains a provision and 
modifies amounts appropriated for the Civil Air Patrol.
    Sec. 8033. Federally funded research and development 
centers.--Retains and modifies a provision carried in previous 
years.
    Sec. 8034. Carbon, alloy, or armor steel plate.--Retains a 
provision carried in previous years.
    Sec. 8035. Congressional defense committees definition.--
Retains a provision carried in previous years.
    Sec. 8036. Depot maintenance competition.--Retains a 
provision carried in previous years.
    Sec. 8037. Reciprocal trade agreements.--Retains a 
provision carried in previous years.
    Sec. 8038. Energy cost savings.--Retains a provision 
carried in previous year.
    Sec. 8039. Quarters allowance for the Reserve component.--
Retains a provision carried in previous years.
    Sec. 8040. Salaries/expenses of administrative 
activities.--Retains a provision carried in previous years.
    Sec. 8041. Marine Youth Program.--Retains a provision 
carried in previous years.
    Sec. 8042. Overseas military facility investment.--Retains 
and modifies a provision carried in previous years.
    Sec. 8043. NATO headquarters operating costs.--Retains a 
provision carried in previous years.
    Sec. 8044. Investment item unit cost.--Retains a provision 
requested by the administration and carried in previous years.
    Sec. 8045. DBOF investment item.--Retains a provision 
carried in previous years.
    Sec. 8046. Modification restrictions.--Retains a provision 
carried in previous years.
    Sec. 8047. CIA availability of funds.--Retains and modifies 
a provision carried in previous years.
    Sec. 8048. GDIP information system.--Retains a provision 
carried in previous years.
    Sec. 8049. Indian tribes environmental impact.--Retains a 
provision carried in previous years.
    Sec. 8050. National Science Center for Communications.--
Retains a provision carried in previous years.
    Sec. 8051. Medical facilities commander.--Retains a 
provision carried in previous years.
    Sec. 8052. Compliance With the Buy America Act.--Retains a 
provision requested by the administration and carried in 
previous years.
    Sec. 8053. Competition for consultants and studies 
programs.--Retains a provision requested by the administration 
and carried in previous years.
    Sec. 8054. Field operating agencies.--Retains a provision 
carried in previous years.
    Sec. 8055. Intelligence authorization.--Retains a provision 
carried in previous years.
    Sec. 8056. Adak leasing.--Retains and modifies a provision 
carried in previous years.
    Sec. 8057. Rescissions.--The Committee recommends a general 
provision rescinding funds from three programs as displayed 
below:

Fiscal year 1998:
    SCN/CVN refueling...................................     $25,000,000
    OPA/NATO AGS........................................      24,000,000
    APAF/F-15 advance procurement.......................      10,800,000
Fiscal year 1997: RDDW/theater high altitude area 
    defense [THAAD] EMD.................................      10,000,000

    Sec. 8058. Civilian technicians reductions.--Retains a 
provision carried in previous years.
    Sec. 8059. Prohibition on assistance to North Korea.--
Retains a provision carried in previous years.
    Sec. 8060. National Guard counterdrug activities.--Retains 
a provision carried in previous years.
    Sec. 8061. Reimbursement for Reserve component intelligence 
personnel.--Retains and modifies a provision carried in 
previous years.
    Sec. 8062. Civilian medical personnel reductions.--Retains 
a provision carried in previous years.
    Sec. 8063. Pentagon renovation cost ceiling.--Retains a 
provision carried in previous years.
    Sec. 8064. Counterdrug activities transfer.--Retains a 
provision carried in previous years.
    Sec. 8065. Energy and water efficiency.--Retains a 
provision carried in previous years.
    Sec. 8066. Ball and roller bearings.--Retains a provision 
carried in previous years.
    Sec. 8067. American Samoa transfer.--Retains a provision 
carried in previous years.
    Sec. 8068. Buy American computers--supercomputers.--Retains 
a provision carried in previous years.
    Sec. 8069. Naval shipyards/Mantech extension program.--
Retains a provision carried in previous years.
    Sec. 8070. Local hire in noncontiguous States.--Retains a 
provision carried in previous year.
    Sec. 8071. Peacekeeping costs of the United Nations.--
Retains a provision carried in previous years.
    Sec. 8072. Restrictions on transfer of equipment and 
supplies.--Retains a provision carried in previous years.
    Sec. 8073. Export Loan Guarantee Program.--Retains a 
provision carried in previous years.
    Sec. 8074. Financing U.S. assessed contribution to United 
Nations peacekeeping.--Retains a provision carried in previous 
years.
    Sec. 8075. Contractor bonuses due to business 
restructuring.--Retains a provision carried in previous years.
    Sec. 8076. Transportation of chemical weapons.--Retains a 
provision carried in previous years.
    Sec. 8077. Former Soviet Union/housing.--Retains a 
provision carried in previous years.
    Sec. 8078. Reserve peacetime support to active duty and 
civilian activities.--Retains a provision carried in previous 
years.
    Sec. 8079. SCN adjustments to closed accounts.--Retains a 
provision carried in previous years.
    Sec. 8080. Expired obligations and unexpended balances.--
Retains a provision carried in previous years.
    Sec. 8081. Shipbuilding transfers.--Retains a provision and 
modifies funding transfers for ship cost adjustments.
    Sec. 8082. Comptroller reporting requirement.--Retains a 
provision carried in previous years.
    Sec. 8083. Facilities supervision and administrative 
costs.--Retains a provision carried in previous years.
    Sec. 8084. Asia Pacific Center.--Retains a provision 
carried in previous years.
    Sec. 8085. National Guard distance learning.--Retains a 
provision carried in previous years.
    Sec. 8086. Fisher House trust fund.--Retains a provision 
carried in previous years.
    Sec. 8087. Crediting of travel card refunds.--Retains a 
provision carried in previous years.
    Sec. 8088. Withdrawal credits/Navy working capital fund.--
Retains a provision carried in previous years.
    Sec. 8089. Prompt Payment Act interest penalties.--Retains 
a provision carried in previous years.
    Sec. 8090. M-1 justification tables.--Retains a provision 
carried in previous years.
    Sec. 8091. Working capital fund budgeting.--Retains a 
provision carried in previous years.
    Sec. 8092. Prohibition against R&D funds for procurement.--
Retains a provision carried in previous years.
    Sec. 8093. NATO expansion.--Retains a provision carried in 
previous years.
    Sec. 8094. Buy American waivers.--Retains a provision 
carried in previous years.
    Sec. 8095. Satellite on-orbit incentives fees.--Inserts a 
new provision requested by the administration.
    Sec. 8096. Air Force working capital fund.--Inserts a new 
provision prohibiting advance billing in excess of 
$100,000,000.
    Sec. 8097. Defense reform initiative.--Reduces title II 
appropriations by $150,000,000 to reflect savings resulting 
from the Defense reform initiative, consistent with the action 
of the Senate Armed Services Committee.
    Sec. 8098. Revised economic assumptions.--The following 
table reflects the reestimation of inflation undertaken by the 
Office of Management and Budget in May 1998. The Committee 
recommends reductions to the specific appropriations identified 
in the table in those amounts, for a total of $400,600,000. The 
Committee expects the Department to distribute these reductions 
against each program and activity in each account reduced on 
the basis of these revised economic assumptions.

Impact of mid-session economic assumptions on fiscal year 1999 budget 
request

Title II--Operation and maintenance:s of dollars]
    Operation and maintenance:
        Army..................................................   -24,000
        Navy..................................................   -32,000
        Marine Corps..........................................    -4,000
        Air Force.............................................   -31,000
        Defense-wide..........................................   -17,600
        Army Reserve..........................................    -2,000
        Navy Reserve..........................................    -2,000
        Air Force Reserve.....................................    -2,000
        Army National Guard...................................    -4,000
        Air National Guard....................................    -4,000
    Environmental restoration:
        Army..................................................    -1,000
        Navy..................................................    -1,000
        Air Force.............................................    -1,000
        Defense-wide..........................................    -1,000
                    --------------------------------------------------------------
                    ____________________________________________________

          Total title II, operation and maintenance...........  -126,600
                    ==============================================================
                    ____________________________________________________
Title III--Procurement:
    Aircraft procurement, Army................................    -4,000
    Missile procurement, Army.................................    -4,000
    Weapons and tracked combat vehicles, Army.................    -4,000
    Procurement of ammunition, Army...........................    -3,000
    Other procurement, Army...................................    -9,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total, Army procurement.................................   -24,000
                    ==============================================================
                    ____________________________________________________
    Aircraft procurement, Navy................................   -22,000
    Weapons procurement, Navy.................................    -4,000
    Procurement of ammunition, Navy and Marine Corps..........    -1,000
    Shipbuilding and conversion, Navy.........................   -18,000
    Other procurement, Navy...................................   -12,000
    Procurement, Marine Corps.................................    -2,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total, Navy procurement.................................   -59,000
                    ==============================================================
                    ____________________________________________________
    Aircraft procurement, Air Force...........................   -23,000
    Missile procurement, Air Force............................    -7,000
    Procurement of ammunition, Air Force......................    -1,000
    Other procurement, Air Force..............................   -17,500
                    --------------------------------------------------------------
                    ____________________________________________________

      Total, Air Force procurement............................   -48,500
                    ==============================================================
                    ____________________________________________________
    Procurement, defense-wide.................................    -5,800
                    --------------------------------------------------------------
                    ____________________________________________________

      Total title III, Procurement............................  -137,300
                    ==============================================================
                    ____________________________________________________
Title IV--Research, development, test and evaluation:
    Research, development, test, and evaluation:
        Army..................................................   -10,000
        Navy..................................................   -20,000
        Air Force.............................................   -39,000
        Defense-wide..........................................   -26,700
                    --------------------------------------------------------------
                    ____________________________________________________

      Total, title IV, Research, development, test and 
      evaluation..............................................   -95,700
                    ==============================================================
                    ____________________________________________________
Title VI--Other DOD programs:
    Chemical agents and munitions destruction, Defense 
      procurement.............................................    -3,000
    Defense Health Program....................................   -36,000
    Drug interdiction, Defense................................    -2,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total title VI--Other DOD programs......................   -41,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total economic assumptions adjustments..................  -400,600

    Sec. 8099. Indemnification of aircraft engine leases.--The 
provision permits the Air Force to lease aircraft engines and 
utilize working capital fund cash balances in the event 
indemnification is required.
    Sec. 8100. Ship asset sale credit.--The provision 
authorizes and funds the management costs of the ship asset 
sales contained in the Senate-reported Department of Defense 
Authorization Act for Fiscal Year 1999.
    Sec. 8101. National defense stockpile asset sale credit.--
The provision enacts the national defense stockpile asset sales 
contained in the Senate-reported Department of Defense 
Authorization Act for Fiscal Year 1999.
    Sec. 8102. Liquidity of working capital funds.--Inserts a 
new provision enacting working capital fund cash management 
provisions as proposed by the Senate defense authorization 
committee.
    Sec. 8103. Limitation on civilian reductions.--Inserts a 
new provision that limits the Army's reduction of civilian work 
force levels at USARPAC and MRTFB's in fiscal year 1999 below 
levels assumed in this act without notification to the Congress 
30 days prior to implementation.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 7 of rule XVI requires that Committee reports on 
general appropriations bills identify each Committee amendment 
to the House bill ``which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.''
    Due to the early Committee action on the fiscal year 1999 
Defense appropriations bill, an original Senate bill was 
reported by the Appropriations Committee to the Senate.
    At the point when the Committee reports this measure, the 
Congress has not completed action on S. 2057, the Fiscal Year 
1999 Defense Authorization Act. As a consequence, the Committee 
has acted in good faith in its attempt to comply fully with 
requirements stipulated under paragraph 7, rule XVI.
    The Committee anticipates that Congress will authorize the 
amounts appropriated in this act.

COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, the Committee 
ordered reported en bloc S. 2132, an original DOD 
appropriations bill, an original Legislative Branch 
appropriations bill, 1999, and an original Energy and Water 
Development appropriations bill, 1999, each subject to 
amendment and each subject to its budget allocations, by a 
recorded vote of 27-0, a quorum being present. The vote was as 
follows:
        Yeas                          Nays
Chairman Stevens
Mr. Cochran
Mr. Domenici
Mr. Bond
Mr. Gorton
Mr. McConnell
Mr. Burns
Mr. Shelby
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mr. Craig
Mr. Faircloth
Mrs. Hutchison
Mr. Byrd
Mr. Inouye
Mr. Hollings
Mr. Leahy
Mr. Bumpers
Mr. Lautenberg
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kohl
Mrs. Murray
Mr. Dorgan
Mrs. Boxer

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee reports 
on a bill or joint resolution repealing or amending any statute 
or part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the committee.''
    The Committee bill as recommended contains no such 
provisions.

  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 1998 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL 
                                                                        YEAR 1999                                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      Senate Committee recommendation   
                                                                                                   Committee              compared with (+ or -)        
                        Item                          1998 appropriation    Budget estimate     recommendation   ---------------------------------------
                                                                                                                  1998 appropriation    Budget estimate 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
                       TITLE I                                                                                                                          
                                                                                                                                                        
                 MILITARY PERSONNEL                                                                                                                     
                                                                                                                                                        
Military Personnel, Army............................    $20,452,057,000     $21,002,051,000     $20,822,051,000       +$369,994,000       -$180,000,000 
    Emergency appropriations........................  ..................        297,700,000   ..................  ..................       -297,700,000 
Military Personnel, Navy............................     16,493,518,000      16,613,053,000      16,532,153,000         +38,635,000         -80,900,000 
    Emergency appropriations........................  ..................          9,700,000   ..................  ..................         -9,700,000 
Military Personnel, Marine Corps....................      6,137,899,000       6,272,089,000       6,253,189,000        +115,290,000         -18,900,000 
    Emergency appropriations........................  ..................          2,700,000   ..................  ..................         -2,700,000 
Military Personnel, Air Force.......................     17,102,120,000      17,311,683,000      17,205,660,000        +103,540,000        -106,023,000 
    Emergency appropriations........................  ..................         33,900,000   ..................  ..................        -33,900,000 
Reserve Personnel, Army.............................      2,032,046,000       2,152,075,000       2,152,075,000        +120,029,000   ..................
Reserve Personnel, Navy.............................      1,376,601,000       1,387,379,000       1,387,379,000         +10,778,000   ..................
    Emergency appropriations........................  ..................          2,200,000   ..................  ..................         -2,200,000 
Reserve Personnel, Marine Corps.....................        391,770,000         401,888,000         401,888,000         +10,118,000   ..................
Reserve Personnel, Air Force........................        815,915,000         856,176,000         856,176,000         +40,261,000   ..................
National Guard Personnel, Army......................      3,333,867,000       3,404,595,000       3,499,595,000        +165,728,000         +95,000,000 
National Guard Personnel, Air Force.................      1,334,712,000       1,376,097,000       1,376,097,000         +41,385,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, title I, Military Personnel............     69,470,505,000      70,777,086,000      70,486,263,000      +1,015,758,000        -290,823,000 
          Emergency appropriations..................  ..................        346,200,000   ..................  ..................       -346,200,000 
                                                     ===================================================================================================
                      TITLE II                                                                                                                          
                                                                                                                                                        
              OPERATION AND MAINTENANCE                                                                                                                 
                                                                                                                                                        
Operation and Maintenance, Army.....................     16,754,306,000      17,223,063,000      17,212,463,000        +458,157,000         -10,600,000 
    (By transfer--National Defense Stockpile).......        (50,000,000)        (50,000,000)        (50,000,000)  ..................  ..................
Operation and Maintenance, Navy.....................     21,617,766,000      21,877,202,000      21,813,315,000        +195,549,000         -63,887,000 
    (By transfer--National Defense Stockpile).......        (50,000,000)        (50,000,000)        (50,000,000)  ..................  ..................
Operation and Maintenance, Marine Corps.............      2,372,635,000       2,523,703,000       2,576,190,000        +203,555,000         +52,487,000 
Operation and Maintenance, Air Force................     18,492,883,000      19,127,004,000      19,073,141,000        +580,258,000         -53,863,000 
    (By transfer--National Defense Stockpile).......        (50,000,000)        (50,000,000)        (50,000,000)  ..................  ..................
Operation and Maintenance, Defense-Wide.............     10,369,740,000      10,750,601,000      10,259,231,000        -110,509,000        -491,370,000 
Operation and Maintenance, Army Reserve.............      1,207,891,000       1,202,622,000       1,202,622,000          -5,269,000   ..................
Operation and Maintenance, Navy Reserve.............        921,711,000         928,639,000         928,639,000          +6,928,000   ..................
Operation and Maintenance, Marine Corps Reserve.....        116,366,000         114,593,000         114,593,000          -1,773,000   ..................
Operation and Maintenance, Air Force Reserve........      1,632,030,000       1,744,696,000       1,744,696,000        +112,666,000   ..................
Operation and Maintenance, Army National Guard......      2,419,632,000       2,436,815,000       2,661,815,000        +242,183,000        +225,000,000 
Operation and Maintenance, Air National Guard.......      3,013,282,000       3,093,933,000       3,113,933,000        +100,651,000         +20,000,000 
Overseas Contingency Operations Transfer Fund.......      1,884,000,000         746,900,000         746,900,000      -1,137,100,000   ..................
    Emergency appropriations........................  ..................      1,512,400,000   ..................  ..................     -1,512,400,000 
United States Court of Appeals for the Armed Forces.          6,952,000           7,324,000           7,324,000            +372,000   ..................
Environmental Restoration, Army.....................        375,337,000         377,640,000         370,640,000          -4,697,000          -7,000,000 
Environmental Restoration, Navy.....................        275,500,000         281,600,000         274,600,000            -900,000          -7,000,000 
Environmental Restoration, Air Force................        376,900,000         379,100,000         372,100,000          -4,800,000          -7,000,000 
Environmental Restoration, Defense-Wide.............         26,900,000          26,091,000          23,091,000          -3,809,000          -3,000,000 
Environmental Restoration, Formerly Used Defense                                                                                                        
 Sites..............................................        242,300,000         195,000,000         225,000,000         -17,300,000         +30,000,000 
Overseas Humanitarian, Disaster, and Civic Aid......         47,130,000          63,311,000          50,000,000          +2,870,000         -13,311,000 
Former Soviet Union Threat Reduction................        382,200,000         442,400,000         440,400,000         +58,200,000          -2,000,000 
Pentagon renovation account.........................  ..................  ..................        279,820,000        +279,820,000        +279,820,000 
Contingency operations MWR fund.....................  ..................  ..................         50,000,000         +50,000,000         +50,000,000 
Quality of Life Enhancements, Defense...............        360,000,000   ..................  ..................       -360,000,000   ..................
    (By transfer)...................................  ..................  ..................       (264,000,000)      (+264,000,000)      (+264,000,000)
                                                     ---------------------------------------------------------------------------------------------------
      Total, title II, Operation and maintenance....     82,895,461,000      83,542,237,000      83,540,513,000        +645,052,000          -1,724,000 
          Emergency appropriations..................  ..................      1,512,400,000   ..................  ..................     -1,512,400,000 
          (By transfer).............................       (150,000,000)       (150,000,000)       (414,000,000)      (+264,000,000)      (+264,000,000)
                                                     ===================================================================================================
                      TITLE III                                                                                                                         
                                                                                                                                                        
                     PROCUREMENT                                                                                                                        
                                                                                                                                                        
Aircraft Procurement, Army..........................      1,346,317,000       1,325,943,000       1,408,652,000         +62,335,000         +82,709,000 
Missile Procurement, Army...........................        762,409,000       1,205,768,000       1,188,739,000        +426,330,000         -17,029,000 
Procurement of Weapons and Tracked Combat Vehicles,                                                                                                     
 Army...............................................      1,298,707,000       1,433,608,000       1,484,055,000        +185,348,000         +50,447,000 
Procurement of Ammunition, Army.....................      1,037,202,000       1,008,855,000         998,655,000         -38,547,000         -10,200,000 
Other Procurement, Army.............................      2,679,130,000       3,198,811,000       3,395,729,000        +716,599,000        +196,918,000 
Aircraft Procurement, Navy..........................      6,535,444,000       7,466,734,000       7,473,403,000        +937,959,000          +6,669,000 
Weapons Procurement, Navy...........................      1,102,193,000       1,327,545,000       1,324,045,000        +221,852,000          -3,500,000 
Procurement of Ammunition, Navy and Marine Corps....        397,547,000         429,539,000         480,739,000         +83,192,000         +51,200,000 
Shipbuilding and Conversion, Navy...................      8,235,591,000       6,252,672,000       6,067,272,000      -2,168,319,000        -185,400,000 
Other Procurement, Navy.............................      3,144,205,000       3,937,737,000       3,886,475,000        +742,270,000         -51,262,000 
Procurement, Marine Corps...........................        482,398,000         745,858,000         954,177,000        +471,779,000        +208,319,000 
Aircraft Procurement, Air Force.....................      6,480,983,000       7,756,475,000       7,967,023,000      +1,486,040,000        +210,548,000 
Missile Procurement, Air Force......................      2,394,202,000       2,359,803,000       2,219,299,000        -174,903,000        -140,504,000 
Procurement of Ammunition, Air Force................        398,534,000         384,161,000         384,161,000         -14,373,000   ..................
Other Procurement, Air Force........................      6,592,909,000       6,974,387,000       6,904,164,000        +311,255,000         -70,223,000 
Procurement, Defense-Wide...........................      2,106,444,000       2,041,650,000       1,932,250,000        -174,194,000        -109,400,000 
National Guard and Reserve Equipment................        653,000,000   ..................        500,000,000        -153,000,000        +500,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, title III, Procurement.................     45,647,215,000      47,849,546,000      48,568,838,000      +2,921,623,000        +719,292,000 
                                                     ===================================================================================================
                      TITLE IV                                                                                                                          
                                                                                                                                                        
     RESEARCH, DEVELOPMENT, TEST AND EVALUATION                                                                                                         
                                                                                                                                                        
Research, Development, Test and Evaluation, Army....      5,156,507,000       4,780,545,000       4,891,640,000        -264,867,000        +111,095,000 
Research, Development, Test and Evaluation, Navy....      8,115,686,000       8,108,923,000       8,215,519,000         +99,833,000        +106,596,000 
Research, Development, Test and Evaluation, Air                                                                                                         
 Force..............................................     14,507,804,000      13,598,093,000      13,693,153,000        -814,651,000         +95,060,000 
Research, Development, Test and Evaluation, Defense-                                                                                                    
 Wide...............................................      9,821,760,000       9,314,665,000       9,032,908,000        -788,852,000        -281,757,000 
Developmental Test and Evaluation, Defense..........        258,183,000         251,106,000         249,106,000          -9,077,000          -2,000,000 
Operational Test and Evaluation, Defense............         31,384,000          25,245,000          25,245,000          -6,139,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, title IV, Research, Development, Test                                                                                                      
       and Evaluation...............................     37,891,324,000      36,078,577,000      36,107,571,000      -1,783,753,000         +28,994,000 
                                                     ===================================================================================================
                       TITLE V                                                                                                                          
                                                                                                                                                        
           REVOLVING AND MANAGEMENT FUNDS                                                                                                               
                                                                                                                                                        
DBOF/Defense Working Capital Funds..................        971,952,000          94,500,000          94,500,000        -877,452,000   ..................
Transfer stockpile balances to working capital fund.  ..................       (350,000,000)       (151,000,000)      (+151,000,000)      (-199,000,000)
Reserve mobilization income insurance fund..........  ..................         37,000,000   ..................  ..................        -37,000,000 
National Defense Sealift Fund:                                                                                                                          
    Ready Reserve Force.............................        302,000,000         335,000,000         335,000,000         +33,000,000   ..................
    Acquisition.....................................        772,948,000          83,166,000         334,566,000        -438,382,000        +251,400,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total.........................................      1,074,948,000         418,166,000         669,566,000        -405,382,000        +251,400,000 
                                                     ===================================================================================================
      Total, title V, Revolving and Management Funds      2,046,900,000         549,666,000         764,066,000      -1,282,834,000        +214,400,000 
          (By transfer).............................  ..................       (350,000,000)       (151,000,000)      (+151,000,000)      (-199,000,000)
                                                     ===================================================================================================
                      TITLE VI                                                                                                                          
                                                                                                                                                        
        OTHER DEPARTMENT OF DEFENSE PROGRAMS                                                                                                            
                                                                                                                                                        
Defense Health Program:                                                                                                                                 
    Operation and maintenance.......................     10,095,007,000       9,653,435,000       9,684,935,000        -410,072,000         +31,500,000 
    Procurement.....................................        274,068,000         402,387,000         402,387,000        +128,319,000   ..................
    Research and development........................  ..................  ..................        250,000,000        +250,000,000        +250,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Defense Health Program.................     10,369,075,000      10,055,822,000      10,337,322,000         -31,753,000        +281,500,000 
Chemical Agents and Munitions Destruction, Defense:                                                                                                     
 \1\                                                                                                                                                    
    Operation and maintenance.......................        462,200,000         531,650,000         491,700,000         +29,500,000         -39,950,000 
    Procurement.....................................         72,200,000         140,670,000         115,670,000         +43,470,000         -25,000,000 
    Research, development, test, and evaluation.....         66,300,000         182,780,000         172,780,000        +106,480,000         -10,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Chemical Agents........................        600,700,000         855,100,000         780,150,000        +179,450,000         -74,950,000 
                                                     ===================================================================================================
Drug Interdiction and Counter-Drug Activities,                                                                                                          
 Defense............................................        712,882,000         727,582,000         742,582,000         +29,700,000         +15,000,000 
Office of the Inspector General.....................        138,380,000         132,064,000         132,064,000          -6,316,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, title VI, Other Department of Defense                                                                                                      
       Programs.....................................     11,821,037,000      11,770,568,000      11,992,118,000        +171,081,000        +221,550,000 
                                                     ===================================================================================================
                      TITLE VII                                                                                                                         
                                                                                                                                                        
                  RELATED AGENCIES                                                                                                                      
                                                                                                                                                        
Central Intelligence Agency Retirement and                                                                                                              
 Disability System Fund.............................        196,900,000         201,500,000         201,500,000          +4,600,000   ..................
Intelligence Community Management Account...........        121,080,000         138,623,000         134,623,000         +13,543,000          -4,000,000 
    Transfer to Department of Justice...............        (27,000,000)        (27,000,000)        (27,000,000)  ..................  ..................
Payment to Kaho'olawe Island Conveyance,                                                                                                                
 Remediation, and Environmental Restoration Fund....         35,000,000          15,000,000          25,000,000         -10,000,000         +10,000,000 
National Security Education Trust Fund..............          2,000,000           5,000,000           3,000,000          +1,000,000          -2,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, title VII, Related agencies............        354,980,000         360,123,000         364,123,000          +9,143,000          +4,000,000 
                                                     ===================================================================================================
                     TITLE VIII                                                                                                                         
                                                                                                                                                        
                 GENERAL PROVISIONS                                                                                                                     
                                                                                                                                                        
Additional transfer authority (sec. 8005)...........     (2,000,000,000)     (2,000,000,000)     (2,000,000,000)  ..................  ..................
Indian Financing Act incentives (sec. 8024).........          8,000,000           2,000,000           8,000,000   ..................         +6,000,000 
Disposal and lease of DOD real property (sec. 8044).         64,000,000          25,000,000   ..................        -64,000,000         -25,000,000 
Overseas Military Fac Investment Recovery (sec.                                                                                                         
 8049)..............................................         30,000,000          38,000,000          38,000,000          +8,000,000   ..................
Export loan guarantee PGM (sec. 8081)...............          1,000,000   ..................  ..................         -1,000,000   ..................
Rescissions (sec. 8064).............................       -176,100,000   ..................        -69,800,000        +106,300,000         -69,800,000 
Flying Hour/readiness offset (sec. 8043)............     -1,253,000,000   ..................  ..................     +1,253,000,000   ..................
FFRDC's/consultants (sec. 8035).....................        -71,800,000   ..................  ..................        +71,800,000   ..................
Advisory and assistance services (sec. 8041)........       -300,000,000   ..................  ..................       +300,000,000   ..................
RDT&E, Def-Wide dual-use program....................          2,000,000   ..................  ..................         -2,000,000   ..................
Fisher Houses (sec. 8100)...........................          1,000,000           1,000,000           1,000,000   ..................  ..................
Travel Cards (sec. 8101)............................          5,000,000           5,000,000           5,000,000   ..................  ..................
Warranties (sec. 8106)..............................        -75,000,000   ..................  ..................        +75,000,000   ..................
Excess Inventory (sec. 8105)........................       -100,000,000   ..................  ..................       +100,000,000   ..................
National Missile Defense Offset (sec. 8048).........       -474,000,000   ..................  ..................       +474,000,000   ..................
Intrepid (sec. 8097)................................         13,000,000   ..................  ..................        -13,000,000   ..................
Expiring Balances (sec. 8127).......................       -100,000,000   ..................  ..................       +100,000,000   ..................
National Security Strategy Study Group (sec. 8130)..          3,000,000   ..................  ..................         -3,000,000   ..................
Lexington Bluegrass (sec. 8128).....................          4,000,000   ..................  ..................         -4,000,000   ..................
Defense reform init (DRI) Title II savings (Sec.                                                                                                        
 xxx)...............................................  ..................  ..................       -150,000,000        -150,000,000        -150,000,000 
Fiscal year 1099 inflation adj savings (Sec. xxxx)..  ..................  ..................       -400,600,000        -400,600,000        -400,600,000 
Fiscal year 1999 RDT&E inflation adj savings (Sec.                                                                                                      
 xxxx)..............................................  ..................  ..................  ..................  ..................  ..................
Fiscal year 1999 Procurement inflation adj savings                                                                                                      
 (Sec. xxx).........................................  ..................  ..................  ..................  ..................  ..................
Sale and lease of ship assets (Sec. xxxx)...........  ..................  ..................       -637,000,000        -637,000,000        -637,000,000 
National Defense stockpile transaction fund asset                                                                                                       
 sale credit (Sec.  xxxx)...........................  ..................  ..................       -100,000,000        -100,000,000        -100,000,000 
Fiscal year 1999 Working capital fund scoring adj                                                                                                       
 (Sec. xxxx)........................................  ..................  ..................  ..................  ..................  ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, title VIII.............................     -2,418,900,000          71,000,000      -1,305,400,000      +1,113,500,000      -1,376,400,000 
                                                     ===================================================================================================
      Grand total...................................    247,708,522,000     250,998,803,000     250,518,092,000      +2,809,570,000        -480,711,000 
--------------------------------------------------------------------------------------------------------------------------------------------------------



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