[Senate Report 105-45]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 108

105th Congress                                                   Report
 1st Session                     SENATE                          105-45

=======================================================================


 
             DEPARTMENT OF DEFENSE APPROPRIATION BILL, 1998

                                _______
                                

                 July 10, 1997.--Ordered to be printed

                                _______



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

                              R E P O R T

                         [To accompany S. 1005]

    The Committee on Appropriations reports the bill (S. 1005) 
making appropriations for the Department of Defense for the 
fiscal year ending September 30, 1998, and for other purposes, 
reports favorably thereon and recommends that the bill do pass.


New obligational authority

Total of bill as reported to Senate.....................$247,177,859,000
Total of 1998 budget estimate........................... 243,923,541,000
Amount of fiscal year 1997 enacted...................... 244,046,878,000
The bill as reported to the Senate:
    Above fiscal year 1998 budget estimate..............   3,254,318,000
    Over enacted appropriations for fiscal year 1997....   3,130,981,000



                            C O N T E N T S

                              ----------                              

Background:                                                        Page
    Purpose of the bill..........................................     4
    Hearings.....................................................     4
    Summary of bill..............................................     4
    Compliance with 602(b) allocation............................     7
Budgetary impact of the bill.....................................     7

                      TITLE I--MILITARY PERSONNEL

Military personnel...............................................     8
Military personnel, Army.........................................    11
Military personnel, Navy.........................................    11
Military personnel, Marine Corps.................................    11
Military personnel, Air Force....................................    12
Reserve and National Guard Personnel.............................    12
Reserve personnel, Army..........................................    13
Reserve personnel, Navy..........................................    13
Reserve personnel, Marine Corps..................................    13
Reserve personnel, Air Force.....................................    14
National Guard personnel, Army...................................    14
National Guard personnel, Air Force..............................    14

                  TITLE II--OPERATION AND MAINTENANCE

Operation and maintenance overview...............................    16
Servicewide operation and maintenance programs...................    17
Operation and maintenance, Army..................................    18
Operation and maintenance, Navy..................................    22
Operation and maintenance, Marine Corps..........................    26
Operation and maintenance, Air Force.............................    28
Operation and maintenance, defense-wide..........................    31
Reserve and National Guard operation and maintenance.............    35
Operation and maintenance, Army Reserve..........................    35
Operation and maintenance, Navy Reserve..........................    35
Operation and maintenance, Marine Corps Reserve..................    35
Operation and maintenance, Air Force Reserve.....................    36
Operation and maintenance, Army National Guard...................    36
Operation and maintenance, Air National Guard....................    37
Overseas contingency operations transfer fund....................    38
Court of Military Appeals........................................    39
Environmental restoration........................................    39
Environmental restoration, Army..................................    40
Environmental restoration, Navy..................................    40
Environmental restoration, Air Force.............................    40
Environmental restoration, defense-wide..........................    41
Environmental restoration, formerly used defense sites...........    41
Former Soviet Union threat reduction.............................    42
Overseas humanitarian, disaster, and civic aid...................    42

                         TITLE III--PROCUREMENT

Estimates and appropriation summary..............................    43
Items of special interest........................................    44
Aircraft procurement, Army.......................................    44
Missile procurement, Army........................................    47
Procurement of weapons and tracked combat vehicles, Army.........    49
Procurement of ammunition, Army..................................    51
Other procurement, Army..........................................    53
Aircraft procurement, Navy.......................................    59
Weapons procurement, Navy........................................    63
Procurement of ammunition, Navy and Marine Corps.................    66
Shipbuilding and conversion, Navy................................    68
Other procurement, Navy..........................................    70
Procurement, Marine Corps........................................    75
Aircraft procurement, Air Force..................................    78
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......................................    96
Research, development, test, and evaluation, Army................    96
Research, development, test, and evaluation, Navy................   106
Research, development, test, and evaluation, Air Force...........   115
Research, development, test, and evaluation, defense-wide........   123
Developmental test, and evaluation, defense......................   133
Operational test and evaluation, defense.........................   134

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

Defense working capital fund adjustments.........................   135
National defense sealift fund....................................   135

          TITLE VI--OTHER DEPARTMENT OF DEFENSE APPROPRIATIONS

Chemical agents and munitions destruction, defense...............   137
Defense Health Program...........................................   140
Drug interdiction and counterdrug activities, defense............   143
Office of the Inspector General..................................   144

                      TITLE VII--RELATED AGENCIES

Central Intelligence Agency retirement and disability system fund   146
Community management staff.......................................   146
National security education trust fund...........................   146
Kaho'olawe Island conveyance, remediation and environmental 
  restoration trust fund.........................................   146

                               TITLE VIII

General provisions...............................................   147
Compliance with paragraph 7(c), rule 16, standing rules of the 
  Senate.........................................................   152
Compliance with paragraph 7(c), rule 26, standing rules of the 
  Senate.........................................................   152
Compliance with paragraph 12, rule 26, standing rules of the 
  Senate.........................................................   153

                               BACKGROUND

                          Purpose of the Bill

    This bill makes appropriations for the military functions 
of the Department of Defense for the period October 1, 1997, 
through September 30, 1998. 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 1998 budget request on 
February 27, 1997, and concluded them on June 4, 1997, after 13 
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 1998 budget 
request of $243,523,541,000 in new obligational authority for 
the military functions of the Department of Defense, excluding 
military assistance, military construction, family housing and 
civil defense. The following table displays the recommendations 
for each title:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                          Fiscal year 1997   Fiscal year 1998      Committee    
                                                              enacted            request         recommendation 
----------------------------------------------------------------------------------------------------------------
Title I--Military personnel............................        70,016,500         69,411,762         69,683,671 
Title II--Operation and maintenance....................        79,163,222         82,280,940         82,714,551 
    (By transfer)......................................          (150,000)          (150,000)          (150,000)
Title III--Procurement.................................        43,815,484         41,585,178         45,393,284 
    (By transfer)......................................  .................          (400,000)  .................
Title IV--Research, development, test, and evaluation..        37,441,121         35,934,491         36,551,058 
Title V--Revolving and management  funds...............         2,375,902          2,163,378          1,388,078 
Title VI--Other Department of Defense programs.........        11,912,712         11,713,312         11,754,237 
Title VII--Related agencies............................           340,664            331,480            356,480 
Title VIII--General provisions.........................          -788,047            103,000           -663,500 
    (Additional transfer authority)....................        (2,000,000)        (2,500,000)        (2,000,000)
                                                        --------------------------------------------------------
      Total, Department of Defense.....................       244,277,558        243,523,541        247,177,859 
          Scorekeeping adjustments.....................          -230,680            400,000   .................
                                                        --------------------------------------------------------
            Grand total................................       244,046,878        243,923,541        247,177,859 
----------------------------------------------------------------------------------------------------------------

                      revised economic assumptions

    The following table reflects the reestimation of inflation 
undertaken by the Office of Management and Budget in June. The 
Committee recommends reductions to the specific appropriations 
identified in the table in those amounts, for a total of 
-$697,000,000. 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 1998 budget 
request

Title II--Operation and maintenance:s of dollars]
    Operation and maintenance:
        Army..................................................   -41,000
        Navy..................................................   -62,000
        Marine Corps..........................................    -7,000
        Air Force.............................................   -46,000
        Defense-wide..........................................   -29,000
    Environmental restoration, Defense........................    -7,000
    Former Soviet Union threat reduction......................    -1,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total title II, operation and maintenance...............  -193,000
                    ==============================================================
                    ____________________________________________________
Title III--Procurement:
    Aircraft procurement, Army................................    -8,000
    Missile procurement, Army.................................    -8,000
    Weapons and tracked combat vehicles, Army.................    -5,000
    Procurement of ammunition, Army...........................    -6,000
    Other procurement, Army...................................   -18,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total, Army procurement.................................   -45,000
                    ==============================================================
                    ____________________________________________________
    Aircraft procurement, Navy................................   -44,000
    Weapons procurement, Navy.................................    -8,000
    Shipbuilding and conversion, Navy.........................   -72,000
    Procurement of ammunition Navy and Marine Corps...........    -2,000
    Other procurement, Navy...................................   -19,000
    Procurement, Marine Corps.................................    -3,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total, Navy procurement.................................  -148,000
                    ==============================================================
                    ____________________________________________________
    Aircraft procurement, Air Force...........................   -48,000
    Missile procurement, Air Force............................   -18,000
    Procurement of ammunition, Air Force......................    -3,000
    Other procurement, Air Force..............................   -39,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total, Air Force procurement............................  -108,000
                    ==============================================================
                    ____________________________________________________
    Procurement, defense-wide.................................   -12,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total title III, Procurement............................  -313,000
                    ==============================================================
                    ____________________________________________________
Title IV--Research, development, test and evaluation:
    Research, development, test, and evaluation:
        Army..................................................   -17,000
        Navy..................................................   -38,000
        Air Force.............................................   -76,000
        Defense-wide..........................................   -49,000
    Development test and evaluation, Defense..................    -2,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total, title IV, Research, development, test and 
      evaluation..............................................  -182,000
                    ==============================================================
                    ____________________________________________________
Title VI--Other DOD programs:
    Chemical agents and munitions destruction, Defense 
      procurement.............................................    -5,000
    Drug interdiction, Defense................................    -4,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total title VI--Other DOD programs......................    -9,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total economic assumptions adjustments..................  -697,000

                     CLASSIFIED PROGRAM ADJUSTMENTS

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

                   Government Performance Results Act

    The Department of Defense concluded the ``Quadrennial 
Defense Review'' [QDR] on May 15, 1997. That report was 
transmitted to Congress, and has served as a central vehicle 
for hearings and deliberation over future Department of Defense 
and military priorities, organizational structure, and resource 
allocation. The Committee has reviewed the QDR report in 
considerable detail, and adjustments made to the President's 
budget request reflect in large part incorporation of 
priorities and issues raised in the QDR.
    The most important performance measure for the Department 
of Defense is deterrence. The absence of hostilities reflects 
the success of force readiness and modernization initiatives 
championed by Congress. While the QDR established the framework 
for future defense planning, it did not seek to quantify or 
highlight departmental programs that merit further assessment 
for streamlining, cost reduction, and improved performance.
    Specifically, the Committee expects the Department to 
closely monitor other agency plans and initiatives that could 
achieve significant improvements in defense activities. In 
financial management, travel administration, personnel 
management, facilities operations, industrial activities, and 
commissary operations, the Department can utilize the 
guidelines applied under the Results Act to achieve 
improvement.
    There are many critical customers within the Department 
that will directly benefit from these efforts. Military units 
in the field are dependent on the maintenance and support of 
equipment from depots. Military personnel and their families 
require housing and medical care that consume ever increasing 
portions of the defense budget. Failure to achieve anticipated 
savings in industrial functions and financial management 
systems drains resources that otherwise would meet critical 
military needs.
    The Committee hopes to maintain a dialog with the 
Department to build on the base of the QDR to bring elements of 
the Results Act into the noncombat functions and operations of 
the Department.

                   Compliance With 602(b) Allocation

    The Appropriations Committee conformed fully to the budget 
resolution for defense spending in its 602(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 
602(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 in the First Concurrent                                                        
 Resolution for 1998: Subcommittee on Defense:                                                                  
    Defense discretionary...................................      246,988      246,981      244,232  \1\ 244,202
    Nondefense discretionary................................  ...........  ...........            7            7
    Violent crime reduction fund............................  ...........  ...........  ...........  ...........
    Mandatory...............................................          197          197          197          197
Projections of outlays associated with the recommendation:                                                      
    1998....................................................  ...........  ...........  ...........  \2\ 164,713
    1999....................................................  ...........  ...........  ...........       48,618
    2000....................................................  ...........  ...........  ...........       18,135
    2001....................................................  ...........  ...........  ...........        7,980
    2002 and future year....................................  ...........  ...........  ...........        6,037
Financial assistance to State and local governments for 1998           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 1,421,501 for fiscal year 1998, 
9,878 positions below the level requested in the President's 
fiscal year 1998 budget. The Committee recommends funding for a 
Reserve and National Guard personnel level of 892,509 for 
fiscal year 1998, 891 positions above the level requested in 
the budget estimate.
    A total of $69,411,762,000 is requested in the President's 
fiscal year 1998 budget for military personnel appropriations. 
This request includes $60,295,530,000 for active duty forces 
and $9,116,232,000 for the Reserves and Guard.

                      summary of committee action

    The Committee recommends appropriations totaling 
$69,683,671,000 in title I, military personnel, for fiscal year 
1998. This amount is $271,909,000 above 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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Active Force:                                                                                                   
    Army........................................................      20,492,257      20,426,457         -65,800
    Navy........................................................      16,501,118      16,508,218          +7,100
    Marine Corps................................................       6,147,599       6,148,899          +1,300
    Air Force...................................................      17,154,556      17,206,056         +51,500
                                                                 -----------------------------------------------
      Subtotal..................................................      60,295,530      60,289,630          -5,900
                                                                 ===============================================
Guard/Reserve:                                                                                                  
    Army Reserve................................................       2,024,446       2,037,046         +12,600
    Navy Reserve................................................       1,375,401       1,374,901            -500
    Marine Corps Reserve........................................         381,070         384,770          +3,700
    Air Force Reserve...........................................         814,936         815,745            +809
    Army National Guard.........................................       3,200,667       3,446,867        +246,200
    Air National Guard..........................................       1,319,712       1,334,712         +15,000
                                                                 -----------------------------------------------
      Subtotal..................................................       9,116,232       9,394,041        +277,809
                                                                 ===============================================
      Grand total...............................................      69,411,762      69,683,671        +271,909
----------------------------------------------------------------------------------------------------------------

    The following table summarizes adjustments to the 1998 
manpower request for Active, Guard, and Reserve Forces.

                                            RECOMMENDED END STRENGTH                                            
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Active Force:                                                                                                   
    Army........................................................         495,000         485,000         -10,000
    Navy........................................................         390,802         390,802  ..............
    Marine Corps................................................         174,000         174,000  ..............
    Air Force...................................................         371,577         371,699            +122
                                                                 -----------------------------------------------
      Subtotal..................................................       1,431,379       1,421,501          -9,878
                                                                 ===============================================
Guard/Reserve:                                                                                                  
    Army Reserve................................................         208,000         208,000  ..............
    Navy Reserve................................................          94,294          94,294  ..............
    Marine Corps Reserve........................................          42,000          42,000  ..............
    Air Force Reserve...........................................          73,431          73,542            +111
    Army National Guard.........................................         366,516         366,516  ..............
    Air National Guard..........................................         107,377         108,157            +780
                                                                 -----------------------------------------------
      Subtotal..................................................         891,618         892,509            +891
                                                                 ===============================================
      Grand total...............................................       2,322,997       2,314,010          -8,987
----------------------------------------------------------------------------------------------------------------

                      full-time support strengths

    The Committee recommends Guard and Reserve full-time 
support end strength of 64,552 for fiscal year 1998, 211 
positions above the budget estimate. The following table 
summarizes adjustments to the 1998 Guard and Reserve full-time 
support end strength.

                                GUARD AND RESERVE FULL-TIME SUPPORT END STRENGTHS                               
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Army Reserve:                                                                                                   
    AGR.........................................................          11,500          11,500  ..............
    Technicians.................................................           6,501           6,501  ..............
Navy Reserve TAR................................................          16,136          16,136  ..............
Marine Corps Reserve............................................           2,559           2,559  ..............
Air Force Reserve:                                                                                              
    AGR.........................................................             963             963  ..............
    Technicians.................................................           9,622           9,733            +111
Army National Guard:                                                                                            
    AGR.........................................................          22,310          22,310  ..............
    Technicians.................................................          25,250          25,250  ..............
Air National Guard:                                                                                             
    AGR.........................................................          10,616          10,671             +55
    Technicians.................................................          22,968          23,068            +100
                                                                 -----------------------------------------------
      Total:                                                                                                    
          AGR/TAR...............................................          64,084          64,139             +55
          Technicians...........................................          64,341          64,552            +211
----------------------------------------------------------------------------------------------------------------

    Pay raise.--The President's fiscal year 1998 budget request 
recommends a 2.8-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 people. This increase is 
effective January 1, 1998.
    Career and educational counseling services.--The Committee 
understands the challenges involved in recruitment and 
retention of Reserve component personnel. Educational and 
career choices are important factors in recruiting these 
personnel. New counseling strategies have been developed using 
technology such as the Internet. Such counseling projects lend 
themselves to underserved areas, such as rural or remote areas, 
and have been successfully implemented by private firms. The 
use of such innovative and cost-effective counseling services 
could readily assist the Reserve component personnel as they 
select career paths with the military, aid in reducing 
attrition, and have a favorable impact on the ability of the 
military to retain experienced personnel over the long term. 
The Committee encourages the Department of Defense to consider 
programs, such as SERVE-SMART, which provides these kinds of 
benefits.
    Inactive duty training.--The Committee recommends a 
provision which allows certain members of Reserve component 
units authorization to travel in a space-required status on 
military aircraft.
    Retention of military leave for Federal employees.--The 
Committee rejects the budget request proposal to eliminate 
military leave for those members of the Reserve components who 
are Federal employees.
    Quality of life concerns.--The Committee is concerned that 
some members of the Armed Forces qualify for food stamps. The 
Committee urges the Department to evaluate compensation levels 
to service members to ensure that their quality of life is 
comparative to their civilian counterparts. The Committee hopes 
that the reform of the basic allowance for subsistence and 
housing and related allowances will help to rectify this 
inequity.

            military personnel contingency operations costs

    The fiscal year 1998 budget request contains funding for 
military personnel costs associated with Bosnia in the overseas 
contingency operations transfer fund. The Committee has 
transferred this funding to the respective military personnel 
appropriations. The following depicts the military personnel 
appropriations for contingency operations for both Bosnia and 
Southwest Asia. For Bosnia, the total is $213,600,000, and for 
Southwest Asia the amount is $76,100,000.

------------------------------------------------------------------------
                                                          Southwest Asia
                 Service                      Bosnia           [SWA]    
------------------------------------------------------------------------
Army....................................    $158,200,000      $4,500,000
Navy....................................       7,100,000      26,600,000
Marine Corps............................       1,300,000  ..............
Air Force...............................      47,000,000      43,300,000
Navy Reserve............................  ..............       1,700,000
                                         -------------------------------
      Total.............................     213,600,000      76,100,000
------------------------------------------------------------------------

                        Military Personnel, Army

Appropriations, 1997.................................... $20,633,998,000
Budget estimate, 1998...................................  20,492,257,000
Committee recommendation................................  20,426,457,000

    The Committee recommends an appropriation of 
$20,426,457,000 for fiscal year 1998. This amount is 
$65,800,000 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

10,000 end strength reduction.................................  -266,000
Additional recruiting support.................................    42,000
Transfer from contingency fund................................   158,200
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................   -65,800

Recommended appropriation

                                                              20,426,457

                        Military Personnel, Navy

Appropriations, 1997.................................... $16,986,976,000
Budget estimate, 1998...................................  16,501,118,000
Committee recommendation................................  16,508,218,000

    The Committee recommends an appropriation of 
$16,508,218,000 for fiscal year 1998. This amount is $7,100,000 
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

Transfer from contingency fund................................     7,100
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................     7,100

Recommended appropriation

                                                              16,508,218

                    Military Personnel, Marine Corps

Appropriations, 1997....................................  $6,111,728,000
Budget estimate, 1998...................................   6,147,599,000
Committee recommendation................................   6,148,899,000

    The Committee recommends an appropriation of $6,148,899,000 
for fiscal year 1998. This amount is $1,300,000 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

Transfer from contingency fund................................     1,300
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................     1,300

Recommended appropriation

                                                               6,148,899

                     Military Personnel, Air Force

Appropriations, 1997.................................... $17,069,490,000
Budget estimate, 1998...................................  17,154,556,000
Committee recommendation................................  17,206,056,000

    The Committee recommends an appropriation of 
$17,206,056,000 for fiscal year 1998. This amount is 
$51,500,000 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

Transfer from contingency fund................................    47,000
Additional B-52 force structure...............................     4,500
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    51,500

Recommended appropriation

                                                               7,206,056

                  Reserve and National Guard Personnel

                    summary of committee adjustments

    C-130 squadrons.--The Committee recommends an increase in 
the Air National Guard and Air Force Reserve end strength and 
funding to maintain C-130 units at 12 primary authorized 
aircraft [PAA] in fiscal year 1998. An additional 155 end 
strength and $4,000,000 in the ``National Guard personnel, Air 
Force'' appropriation and an additional 111 end strength and 
$1,409,000 in the ``Reserve personnel, Air Force'' 
appropriation accommodate this change. The Committee also 
recommends an increase in the operation and maintenance 
appropriations of the Air Force Reserve of $6,780,000, and of 
the Air National Guard of $13,063,000.
    Termination of the Reserve Mobilization Income Insurance 
Program.--The fiscal year 1998 Defense authorization bill 
proposes termination of the Reserve Mobilization Income 
Insurance Program. The Committee includes a provision which 
provides the Department authority to meet its financial 
obligations with respect to the termination of the program in 
the absence of a supplemental appropriation.

                        Reserve Personnel, Army

Appropriations, 1997....................................  $2,073,479,000
Budget estimate, 1998...................................   2,024,446,000
Committee recommendation................................   2,037,046,000

    The Committee recommends an appropriation of $2,037,046,000 
for fiscal year 1998. This amount is $12,600,000 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

Health Professional Scholarship Program.......................    -7,800
Restoral of military leave for Federal employees..............    20,400
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    12,600

Recommended appropriation

                                                               2,037,046

                        Reserve Personnel, Navy

Appropriations, 1997....................................  $1,405,606,000
Budget estimate, 1998...................................   1,375,401,000
Committee recommendation................................   1,374,901,000

    The Committee recommends an appropriation of $1,374,901,000 
for fiscal year 1998. This amount is $500,000 below 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

Health Professional Scholarship Program.......................    -9,000
Restoral of military leave for Federal employees..............     8,500
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................  -500,000

Recommended appropriation

                                                               1,374,901

                    Reserve Personnel, Marine Corps

Appropriations, 1997....................................    $388,643,000
Budget estimate, 1998...................................     381,070,000
Committee recommendation................................     384,770,000

    The Committee recommends an appropriation of $384,770,000 
for fiscal year 1998. This amount is $3,700,000 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

Restoral of military leave for Federal employees..............     3,700
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................     3,700

Recommended appropriation

                                                                 384,770

                      Reserve Personnel, Air Force

Appropriations, 1997....................................    $783,697,000
Budget estimate, 1998...................................     814,936,000
Committee recommendation................................     815,745,000

    The Committee recommends an appropriation of $815,745,000 
for fiscal year 1998. This amount is $809,000 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

Health Professional Scholarship Program.......................    -8,800
Restoral of military leave for Federal employees..............     8,200
C-130 force structure.........................................     1,409
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................       809

Recommended appropriation

                                                                 815,745

                     National Guard Personnel, Army

Appropriations, 1997....................................  $3,266,393,000
Budget estimate, 1998...................................   3,200,667,000
Committee recommendation................................   3,446,867,000

    The Committee recommends an appropriation of $3,446,867,000 
for fiscal year 1998. This amount is $246,200,000 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

Annual training...............................................    33,000
IDT...........................................................    20,000
IET...........................................................    35,000
Schools/special training......................................   115,000
Bonus/transition benefits.....................................    10,000
Restoral of military leave for Federal employees..............    33,200
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................   246,200

Recommended appropriation

                                                               3,446,867

                  National Guard Personnel, Air Force

Appropriations, 1997....................................  $1,296,490,000
Budget estimate, 1998...................................   1,319,712,000
Committee recommendation................................   1,334,712,000

    The Committee recommends an appropriation of $1,334,712,000 
for fiscal year 1998. This amount is $15,000,000 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

Restoral of military leave for Federal employees..............    11,000
C-130 force structure.........................................     4,000
                    --------------------------------------------------------------
                    ____________________________________________________

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

Recommended appropriation

                                                               1,334,712
                                TITLE II

                       OPERATION AND MAINTENANCE

    The Committee recommends appropriations totaling 
$82,714,551,000 in title II, operation and maintenance, for 
fiscal year 1998. This is $433,611,000 above 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]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1998 budget       Committee       Change from  
                                                                   estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
O&M:                                                                                                            
    Army.....................................................      17,049,484       16,913,473         -136,011 
        Transfer--stockpile..................................         (50,000)         (50,000)  ...............
    Navy.....................................................      21,508,130       21,576,419          +68,289 
        Transfer--stockpile..................................         (50,000)         (50,000)  ...............
    Marine Corps.............................................       2,301,345        2,328,535          +27,190 
    Air Force................................................      18,817,785       18,592,385         -225,400 
        Transfer--stockpile..................................         (50,000)         (50,000)  ...............
    Defense-wide.............................................      10,390,938       10,399,638           +8,700 
    Army Reserve.............................................       1,192,891        1,212,891          +20,000 
    Navy Reserve.............................................         834,711          834,211             -500 
    Marine Corps Reserve.....................................         110,366          110,366   ...............
    Air Force Reserve........................................       1,624,420        1,631,200           +6,780 
    Army National Guard......................................       2,258,932        2,449,932         +191,000 
    Air National Guard.......................................       2,991,219        3,010,282          +19,063 
Overseas contingency operations transfer fund................       1,467,500        1,889,000         +421,500 
Court of Military Appeals....................................           6,952            6,952   ...............
Environmental restoration:                                                                                      
    Army.....................................................         377,337          375,337           -2,000 
    Navy.....................................................         277,500          275,500           -2,000 
    Air Force................................................         378,900          376,900           -2,000 
    Defense-wide.............................................          27,900           26,900           -1,000 
    Formerly used defense sites..............................         202,300          242,300          +40,000 
Former Soviet Union threat reduction.........................         382,200          322,200          -60,000 
Humanitarian assistance......................................          80,130           40,130          -40,000 
Quality of life enhancements, defense........................  ...............         100,000         +100,000 
                                                              --------------------------------------------------
      Total..................................................      82,280,940       82,714,551         +433,611 
----------------------------------------------------------------------------------------------------------------

                   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

    Last year, the Committee added $600,000,000 to the service 
accounts for the repair and improvement of housing, barracks, 
and dining facilities throughout the Department of Defense.
    The Committee recognizes that significant backlogs still 
exist and provides an additional $380,000,000 to the services' 
real property maintenance accounts for projects within the 
United States and its territories. The Committee directs each 
service Secretary to provide a report to the congressional 
defense committees and the Under Secretary of Defense 
(Comptroller) on all additional projects to be funded prior to 
release of these funds and no later than October 31, 1997. This 
report shall include project location, estimated cost, and 
projected commencement and completion dates.

                             jcs exercises

    The Committee notes the ever-expanding requirements of the 
unified CINC's on a defense force that has been significantly 
reduced over the past 5 years. In addition to the enormous cost 
of contingency operations, the JCS Exercise Program has grown 
to include nearly 300 joint and foreign exercises in 95 
countries in fiscal year 1996 alone. As explained in the fiscal 
year 1997 supplemental appropriations report, the Committee 
believes that the current OPTEMPO and PERSTEMPO rates could be 
reduced if a greater effort were made to place some limits on 
the demands for service participation in overseas joint 
exercise schedules.
    Additionally, the Committee endorses the Secretary of 
Defense's intention to implement reductions in headquarters 
staffs and anticipates significant savings as a result of this 
streamlining initiative.

                   training infrastructure reductions

    A GAO study has determined that DOD end strengths and 
training workload have decreased at much greater rates than the 
training budget and subsequently identified savings across the 
service accounts. Reductions have been made in the Department's 
operation and maintenance accounts and the Committee encourages 
the Department to aggressively pursue further savings in these 
areas through consolidations and efficiencies.

                      pentagon reservation program

    The Committee again consolidates funding for the Pentagon's 
renovation in the ``Operation and maintenance, defense-wide'' 
account.

                 department of defense liaison function

    The Appropriations Committees channel most inquiries and 
requests for information through the comptroller organizations 
of the Defense Department and military services. While the 
Committee welcomes the contributions of all organizations of 
the Defense Department for assistance and information, the most 
effective primary interface has proven to be through the 
comptroller organizations with their respective liaison 
offices. This mechanism serves to ensure that the consistency 
and sufficient level of detail critical to the appropriations 
and budget process are provided in a timely manner. The 
workload generated by the budget process is large and is 
greatly facilitated by these separate appropriation liaison 
offices within the Department.

                       nato headquarters funding

    The Committee directs that funding in support of NATO 
headquarters continue to be maintained at fiscal year 1995 
levels and reduces the Army's request to this level.

                           dfas consolidation

    The Committee has followed with interest the Defense 
Finance and Accounting Service [DFAS] consolidation of more 
than 300 accounting offices into five large finance centers and 
15 operating locations [OPLOC's], in order to reduce the number 
of accounting and finance personnel while streamlining 
financial operations in the Department of Defense. However, 
there is concern that the current target number of OPLOC's is 
still in excess of the Department's overall finance and 
accounting requirements with many of these proposed centers 
requiring extensive alterations and construction.
    The Committee directs the Under Secretary of Defense 
(Comptroller) to review the total DFAS infrastructure 
requirement, including justification for each operating 
location, and report these findings to the congressional 
defense committees not later than October 15, 1997.

                    Operation and Maintenance, Army

Appropriations, 1997.................................... $17,519,340,000
Budget estimate, 1998...................................  17,049,484,000
Committee recommendation................................  16,913,473,000

    The Committee recommends an appropriation of 
$16,913,473,000. This is $136,011,000 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 
$20,000,000 are subject to standard reprogramming procedures.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
                 OPERATION AND MAINTENANCE, ARMY                                                                
                                                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                            
    LAND FORCES:                                                                                                
        DIVISIONS...............................................       1,221,794       1,161,494         -60,300
        CORPS COMBAT FORCES.....................................         350,942         327,242         -23,700
        CORPS SUPPORT FORCES....................................         323,190         323,190  ..............
        ECHELON ABOVE CORPS FORCES..............................         440,542         440,542  ..............
        LAND FORCES OPERATIONS SUPPORT..........................         658,067         658,067  ..............
    LAND FORCES READINESS:                                                                                      
        FORCE READINESS OPERATIONS SUPPORT......................         898,356         898,356  ..............
        LAND FORCES SYSTEMS READINESS...........................         346,651         346,651  ..............
        LAND FORCES DEPOT MAINTENANCE...........................         637,044         701,044         +64,000
    LAND FORCES READINESS SUPPORT:                                                                              
        BASE SUPPORT............................................       2,417,712       2,417,712  ..............
        MAINTENANCE OF REAL PROPERTY............................         693,328         743,328         +50,000
        MANAGEMENT AND OPERATIONAL HEADQUARTERS.................         130,012         131,212          +1,200
        UNIFIED COMMANDS........................................          70,620          63,620          -7,000
        MISCELLANEOUS ACTIVITIES................................         179,864         179,864  ..............
        CLASSIFIED PROGRAMS, UNDISTRIBUTED......................  ..............           1,800          +1,800
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..............................       8,368,122       8,394,122         +26,000
                                                                 ===============================================
BUDGET ACTIVITY 2: MOBILIZATION:                                                                                
    MOBILITY OPERATIONS:                                                                                        
        STRATEGIC MOBILIZATION..................................         317,241         317,241  ..............
        WAR RESERVE ACTIVITIES..................................         171,100         171,100  ..............
        INDUSTRIAL PREPAREDNESS.................................          78,103          78,103  ..............
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 2..............................         566,444         566,444  ..............
                                                                 ===============================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                     
    ACCESSION TRAINING:                                                                                         
        OFFICER ACQUISITION.....................................          63,992          63,992  ..............
        RECRUIT TRAINING........................................          12,620          12,620  ..............
        ONE STATION UNIT TRAINING...............................          14,723          14,723  ..............
        RESERVE OFFICER TRAINING CORPS (ROTC)...................         113,128         113,578            +450
        BASE SUPPORT (ACADEMY ONLY).............................          72,470          72,470  ..............
        MAINTENANCE OF REAL PROPERTY (ACADEMY ONLY).............          28,123          28,123  ..............
    BASIC SKILL/ ADVANCE TRAINING:                                                                              
        SPECIALIZED SKILL TRAINING..............................         217,202         217,202  ..............
        FLIGHT TRAINING.........................................         213,906         227,906         +14,000
        PROFESSIONAL DEVELOPMENT EDUCATION......................          69,594          69,594  ..............
        TRAINING SUPPORT........................................         484,484         482,484          -2,000
        BASE SUPPORT (OTHER TRAINING)...........................         897,433         897,433  ..............
        MAINTENANCE OF REAL PROPERTY (OTHER TRAINING)...........         321,089         350,089         +29,000
    RECRUITING/OTHER TRAINING:                                                                                  
        RECRUITING AND ADVERTISING..............................         222,718         241,718         +19,000
        EXAMINING...............................................          75,922          75,922  ..............
        OFF-DUTY AND VOLUNTARY EDUCATION........................          94,364          94,364  ..............
        CIVILIAN EDUCATION AND TRAINING.........................          81,481          81,481  ..............
        JUNIOR ROTC.............................................          73,439          73,439  ..............
        BASE SUPPORT (RECRUITING LEASES)........................         163,010         163,010  ..............
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 3..............................       3,219,698       3,280,148         +60,450
                                                                 ===============================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                              
    SECURITY PROGRAMS: SECURITY PROGRAMS........................         366,085         366,085  ..............
    LOGISTICS OPERATIONS:                                                                                       
        SERVICEWIDE TRANSPORTATION..............................         531,326         531,326  ..............
        CENTRAL SUPPLY ACTIVITIES...............................         405,371         405,371  ..............
        LOGISTIC SUPPORT ACTIVITIES.............................         253,138         275,038         +21,900
        AMMUNITION MANAGEMENT...................................         369,407         369,407  ..............
    SERVICEWIDE SUPPORT:                                                                                        
        ADMINISTRATION..........................................         294,972         294,972  ..............
        SERVICEWIDE COMMUNICATIONS..............................         620,825         632,925         +12,100
        MANPOWER MANAGEMENT.....................................         152,437         152,437  ..............
        OTHER PERSONNEL SUPPORT.................................         155,307         155,307  ..............
        OTHER SERVICE SUPPORT...................................         593,446         529,485         -63,961
        ARMY CLAIMS ACTIVITIES..................................         151,092         151,092  ..............
        REAL ESTATE MANAGEMENT..................................          63,526          63,526  ..............
        BASE SUPPORT............................................         667,779         667,779  ..............
        MAINTENANCE OF REAL PROPERTY............................         131,528         145,028         +13,500
    SUPPORT OF OTHER NATIONS:                                                                                   
        INTERNATIONAL MILITARY HEADQUARTERS.....................         270,413         255,413         -15,000
        MISC SUPPORT OF OTHER NATIONS...........................          34,568          34,568  ..............
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..............................       5,061,220       5,029,759         -31,461
CIVILIAN PERSONNEL UNDER EXECUTION..............................  ..............        -131,000        -131,000
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE FUND..............         -50,000         -50,000  ..............
FOREIGN CURRENCY ADJUSTMENT.....................................        -116,000        -135,000         -19,000
ECONOMIC ASSUMPTIONS............................................  ..............         -41,000         -41,000
                                                                 ===============================================
      TOTAL, OPERATION AND MAINTENANCE, ARMY....................      17,049,484      16,913,473        -136,011
          TRANSFER..............................................        (50,000)        (50,000)  ..............
                                                                 -----------------------------------------------
            TOTAL FUNDING AVAILABLE.............................    (17,099,484)    (16,963,473)      (-136,011)
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

    Adjustments to the budget activities are as follows:

Budget activity 1--Operating forces:s of dollars]
    Contingency operations transfer...........................   -80,300
    Organizational clothing and individual equipment..........    20,000
    Flying Hour Program.......................................   -30,000
    Hunter UAV................................................     6,300
    Drawdown costs............................................    35,000
    AIM XXI...................................................    29,000
    USARPAC Reserve component integration.....................     1,200
    JCS exercises and headquarters reduction..................   -15,000
    CP Tango modernization....................................     8,000
    Classified programs.......................................     1,800
Budget activity 3--Training and recruiting:
    Army Air Battle Captain Program...........................       450
    Army Pilot Modernization Program..........................    14,000
    Training infrastructure reduction.........................    -2,000
    Recruiter support.........................................     7,000
    College loan repayment program............................     5,000
    Enlisted advertising......................................     7,000
Budget activity 4--Administration and servicewide activities:
    Logistics automation......................................    21,900
    Force XXI architecture....................................     4,000
    C\2\ information systems security.........................     8,100
    Pentagon reservation transfer.............................   -66,961
    Army conservation and ecosystem management................     3,000
    Rock Island Arsenal Bridge................................     5,000
    International military headquarters.......................   -15,000
Other adjustments:
    Civilian personnel underexecution.........................  -131,000
    Foreign currency adjustment...............................  -135,000
    Real property maintenance and demolition..................    87,500
    Revised economic assumptions..............................   -41,000

                         COMMITTEE ADJUSTMENTS

    Flying Hour Program.--The Committee has been made aware of 
a modeling error in the Department's Flying Hour Program that 
has resulted in a significant overstatement of the requirements 
for fiscal year 1998 and beyond. The Committee has subsequently 
reduced funding by $30,000,000 and directs the Army to make a 
greater effort to keep the defense committees apprised of such 
developments as they occur or are discovered.
    RPM and demolition funding.--The Committee has provided 
$187,500,000 of additional funding for real property 
maintenance shortfalls in the Army; of this amount, 
$100,000,000 is for barracks renovation projects as identified 
by the Senate Armed Services Committee Report 105-29 and 
$15,000,000 is for demolition requirements previously 
identified by the Department.
    Rock Island Arsenal Bridge.--The Committee provides 
$5,000,000 of initial funding for the renovation and 
refurbishment of the Rock Island Arsenal Bridge in Iowa.
    Drawdown costs.--In recognition of the unfunded obligations 
incurred by the Army Materiel Command when directed by the 
administration to prepare, package, and ship equipment to U.S. 
allies and trading partners, the Committee has provided an 
additional $35,000,000 for these unanticipated costs.
    Hunter.--The utility of the Hunter system was fully 
validated during the recent national training exercise at Fort 
Irwin and the Committee is providing an additional $12,000,000 
for the operation of existing Hunter UAV systems. Of this 
amount, $6,300,000 is in addition to amounts requested for this 
program. The remaining $5,700,000 is to be derived from funds 
the Army had budgeted for Predator but are no longer required 
due to the transfer of Predator to the Air Force. The Army is 
strongly encouraged to make full use of this demonstrated 
warfighting asset.
    Army conservation and ecosystem management.--The Committee 
recommends an increase of $3,000,000 in the other service 
support line and directs that these funds shall be available 
only to continue ongoing Army conservation and ecosystem 
management programs. Funds shall be made available specifically 
for conservation and mitigation efforts in support of the 
improvements of Saddle Road, a defense access road which runs 
through the Pohakuloa Training Area.
    North Star Borough landfill.--Of the funds provided in this 
account, the Committee directs the Department of the Army to 
provide $5,000,000 for developmental costs associated with the 
expansion of the North Star Borough landfill. The Department of 
Defense will be one of the principal customers of this new 
facility, which will meet State and Federal environmental 
requirements.

                    Operation and Maintenance, Navy

Appropriations, 1997.................................... $20,061,961,000
Budget estimate, 1998...................................  21,508,130,000
Committee recommendation................................  21,576,419,000

    The Committee recommends an appropriation of 
$21,576,419,000. This is $68,289,000 above 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 
$20,000,000 are subject to standard reprogramming procedures.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
                 OPERATION AND MAINTENANCE, NAVY                                                                
                                                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                            
    AIR OPERATIONS:                                                                                             
        MISSION AND OTHER FLIGHT OPERATIONS.....................       2,101,423       2,035,663         -65,760
        FLEET AIR TRAINING......................................         667,112         682,112         +15,000
        INTERMEDIATE MAINTENANCE................................          58,087          58,087  ..............
        AIR OPERATIONS AND SAFETY SUPPORT.......................          73,248          73,248  ..............
        AIRCRAFT DEPOT MAINTENANCE..............................         716,300       1,012,094        +295,794
        AIRCRAFT DEPOT OPERATIONS SUPPORT.......................          21,575          21,575  ..............
        BASE SUPPORT............................................         789,892         789,892  ..............
        MAINTENANCE OF REAL PROPERTY............................         262,452         286,452         +24,000
        JCS EXERCISES & HEADQUARTERS REDUC-  TION...............  ..............          -7,500          -7,500
    SHIP OPERATIONS:                                                                                            
        MISSION AND OTHER SHIP OPERATIONS.......................       2,130,636       2,117,112         -13,524
        SHIP OPERATIONAL SUPPORT AND TRAINING...................         735,660         735,660  ..............
        INTERMEDIATE MAINTENANCE................................         511,125         511,125  ..............
        SHIP DEPOT MAINTENANCE..................................       2,040,690       2,040,690  ..............
        SHIP DEPOT OPERATIONS SUPPORT...........................         786,021         785,817            -204
        BASE SUPPORT............................................         840,646         840,646  ..............
        MAINTENANCE OF REAL PROPERTY............................         245,904         267,604         +21,700
        JCS EXERCISES & HEADQUARTERS REDUC-  TION...............  ..............          -7,500          -7,500
    COMBAT OPERATIONS/SUPPORT:                                                                                  
        COMBAT COMMUNICATIONS...................................         210,776         210,776  ..............
        ELECTRONIC WARFARE......................................           7,763           7,763  ..............
        SPACE SYSTEMS AND SURVEILLANCE..........................         136,869         136,869  ..............
        WARFARE TACTICS.........................................         125,892         125,892  ..............
        OPERATIONAL METEOROLOGY AND OCEANOGRAPHY................         209,188         228,688         +19,500
        COMBAT SUPPORT FORCES...................................         383,830         383,815             -15
        EQUIPMENT MAINTENANCE...................................         177,708         176,906            -802
        DEPOT OPERATIONS SUPPORT................................             908             908  ..............
        BASE SUPPORT............................................         317,266         317,266  ..............
        MAINTENANCE OF REAL PROPERTY............................          42,864          46,864          +4,000
        CLASSIFIED PROGRAMS UNDISTRIBUTED.......................  ..............           5,500          +5,500
    WEAPONS SUPPORT:                                                                                            
        CRUISE MISSILE..........................................          92,482          92,482  ..............
        FLEET BALLISTIC MISSILE.................................         811,451         811,451  ..............
        IN-SERVICE WEAPONS SYSTEMS SUPPORT......................          54,927          54,927  ..............
        WEAPONS MAINTENANCE.....................................         400,817         400,817  ..............
        BASE SUPPORT............................................          71,540          71,540  ..............
        MAINTENANCE OF REAL PROPERTY............................          27,516          30,016          +2,500
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..............................      15,052,568      15,345,257        +292,689
                                                                 ===============================================
BUDGET ACTIVITY 2: MOBILIZATION:                                                                                
    READY RESERVE AND PREPOSITIONING FORCES: SHIP PREPOSITIONING                                                
     AND SURGE..................................................         455,050         454,948             -82
    ACTIVATIONS/INACTIVATIONS:                                                                                  
        AIRCRAFT ACTIVATIONS/INACTIVATIONS......................           3,081           3,081  ..............
        SHIP ACTIVATIONS/INACTIVATIONS..........................         701,583         701,583  ..............
    MOBILIZATION PREPAREDNESS:                                                                                  
        FLEET HOSPITAL PROGRAM..................................          19,814          19,814  ..............
        INDUSTRIAL READINESS....................................          29,196          29,196  ..............
        COAST GUARD SUPPORT.....................................          18,363          18,363  ..............
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 2..............................       1,227,067       1,226,985             -82
                                                                 ===============================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                     
    ACCESSION TRAINING:                                                                                         
        OFFICER ACQUISITION.....................................          69,274          69,274  ..............
        RECRUIT TRAINING........................................           4,646           4,646  ..............
        RESERVE OFFICERS TRAINING CORPS  (ROTC).................          67,795          67,795  ..............
        BASE SUPPORT............................................          57,605          57,605  ..............
        MAINTENANCE OF REAL PROPERTY............................          74,215          74,215  ..............
    BASIC SKILLS AND ADVANCED TRAINING:                                                                         
        SPECIALIZED SKILL TRAINING..............................         236,487         218,487         -18,000
        FLIGHT TRAINING.........................................         314,790         314,790  ..............
        PROFESSIONAL DEVELOPMENT EDUCATION......................          69,044          64,044          -5,000
        TRAINING SUPPORT........................................         135,051         122,051         -13,000
        BASE SUPPORT............................................         339,627         339,627  ..............
        MAINTENANCE OF REAL PROPERTY............................          95,601         104,101          +8,500
    RECRUITING, AND OTHER TRAINING AND EDUCATION:                                                               
        RECRUITING AND ADVERTISING..............................         122,454         122,454  ..............
        OFF-DUTY AND VOLUNTARY EDUCATION........................          69,495          69,495  ..............
        CIVILIAN EDUCATION AND TRAINING.........................          29,198          29,198  ..............
        JUNIOR ROTC.............................................          23,642          23,642  ..............
        BASE SUPPORT............................................             445             445  ..............
        MAINTENANCE OF REAL PROPERTY............................              62              62  ..............
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 3..............................       1,709,431       1,681,931         -27,500
                                                                 ===============================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                              
    SERVICEWIDE SUPPORT:                                                                                        
        ADMINISTRATION..........................................         574,305         545,494         -28,811
        EXTERNAL RELATIONS......................................          24,141          24,141  ..............
        CIVILIAN MANPOWER AND PERSON MANAGEMENT.................         118,544         118,544  ..............
        MILITARY MANPOWER AND PERSON MANAGEMENT.................         124,405         124,405  ..............
        OTHER PERSONNEL SUPPORT.................................         199,446         199,446  ..............
        SERVICEWIDE COMMUNICATIONS..............................         260,056         259,749            -307
        BASE SUPPORT............................................         197,537         197,537  ..............
        MAINTENANCE OF REAL PROPERTY............................          39,623          42,923          +3,300
    LOGISTICS OPERATIONS AND TECHNICAL SUPPORT:                                                                 
        SERVICEWIDE TRANSPORTATION..............................         149,675         149,675  ..............
        PLANNING, ENGINEERING AND DESIGN........................         258,779         258,779  ..............
        ACQUISITION AND PROGRAM MANAGEMENT......................         491,005         491,005  ..............
        AIR SYSTEMS SUPPORT.....................................         271,149         271,149  ..............
        HULL, MECHANICAL AND ELECTRICAL SUPPORT.................          46,904          46,904  ..............
        COMBAT/WEAPONS SYSTEMS..................................          41,547          41,547  ..............
        SPACE AND ELECTRONIC WARFARE SYS-  TEMS.................          70,344          70,344  ..............
        BASE SUPPORT............................................         152,606         152,606  ..............
        MAINTENANCE OF REAL PROPERTY............................          20,470          22,470          +2,000
    SECURITY PROGRAMS:                                                                                          
        SECURITY PROGRAMS.......................................         536,691         536,691  ..............
        BASE SUPPORT............................................           6,886           6,886  ..............
        MAINTENANCE OF REAL PROPERTY............................           1,520           1,520  ..............
    SUPPORT OF OTHER NATIONS: INTERNATIONAL HEADQUARTERS AND                                                    
     AGENCIES...................................................           6,435           6,435  ..............
                                                                 -----------------------------------------------
        TOTAL, BUDGET ACTIVITY 4................................       3,592,064       3,568,246         -23,818
                                                                 ===============================================
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE FUND..............         -50,000         -50,000  ..............
FOREIGN CURRENCY ADJUSTMENT.....................................         -23,000         -21,000          +2,000
CIVILIAN PERSONNEL UNDER EXECUTION..............................  ..............        -113,000        -113,000
ECONOMIC ASSUMPTIONS............................................  ..............         -62,000         -62,000
                                                                 ===============================================
      TOTAL, OPERATION AND MAINTENANCE, NAVY....................      21,508,130      21,576,419         +68,289
          TRANSFER..............................................        (50,000)        (50,000)  ..............
                                                                 -----------------------------------------------
      TOTAL FUNDING AVAILABLE...................................    (21,558,130)    (21,626,419)       (+68,289)
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

    Adjustments to the budget activities are as follows:

Budget activity 1--Operating forces:s of dollars]
    Contingency operations transfer...........................   -84,511
    PMRF......................................................    15,000
    Aviation depot-level repairables [AVDLR's]................   300,000
    JCS exercises and headquarters reduction..................   -15,000
    Naval Meteorology and Oceanography Command................    19,500
    Classified programs.......................................     5,500
Budget activity 2--Mobilization: Contingency operations 
    transfer..................................................       -82
Budget activity 3--Training and recruiting: Training 
    infrastructure reductions.................................   -36,000
Budget activity 4--Administration and servicewide activities:
    Pentagon reservation transfer.............................   -28,811
    Contingency operations transfer...........................      -307
Other adjustments:
    Civilian personnel underexecution.........................  -113,000
    Foreign currency adjustment...............................   -21,000
    Real property maintenance.................................    66,000
    Revised economic assumptions..............................   -62,000

                         COMMITTEE ADJUSTMENTS

                     O&M SUPPORT OF MILITARY FORCES

    AVDLR's.--Significant funding shortfalls in the Navy's 
fiscal year 1998 Flying Hour Program, resulting from pricing 
miscalculations for aviation depot level repairables [AVDLR's], 
were identified by the Navy subsequent to submission of the 
budget request. The Committee is providing an additional 
$300,000,000 to fund this requirement as the Navy continues its 
efforts to develop a new pricing methodology that will predict 
AVDLR costs more accurately.
    Ship maintenance.--For each of the past several years the 
Committee has recommended and the Congress has approved 
increases to the Navy budget to provide adequate funding levels 
for Navy ship maintenance. The Congress has been careful to 
fund only those amounts that are well within the needs of the 
service and fully executable. The Committee ruefully notes that 
little of this additional funding has been made available to 
the public and private shipyards. Instead, it has been used by 
the Navy to absorb reductions levied against the ``Operation 
and maintenance'' appropriation, and to cover unexpected cost 
increases in other areas. The net result has been continued 
reductions in workers at public shipyards and outcries from the 
private sector over a lack of funding for ship repair. The 
Committee is increasingly frustrated by the inability to alter 
the Navy's behavior through discourse. Therefore, the Committee 
is recommending a legislative floor on ship maintenance at the 
amounts requested in the administration's budget for the 
program. Under this restrictive language, the Navy will be 
required by law to spend no less than the amounts it has 
requested for this program. The Committee understands fully 
that this limitation will reduce the flexibility of the Navy to 
manage other emergent requirements, but knows of no other 
mechanism to enforce the will of the Congress.
    RPM.--An additional $66,000,000 above the budget request 
has been provided by the Committee for unfunded real property 
maintenance projects. Of this amount, $3,200,000 shall be 
utilized to fund priority operational and safety requirements 
at Fallon Naval Air Station.
    Pacific Missile Range facility [PMRF].--The Committee 
recommends an increase of $15,000,000 for operations and 
improvements in utility services at the Pacific Missile Range 
facility. The Committee notes that severe budget reductions in 
fiscal year 1997 caused a serious degradation in the ability of 
the range to meet fleet training requirements and to satisfy 
the growing demand on the range for testing and evaluation by 
the Navy and other DOD customers. Therefore, the Committee 
directs that no general reductions shall be allocated against 
PMRF without the approval of the Committees on Appropriations 
of the House and Senate. In addition, the allocation includes 
$3,000,000 for utility upgrades, including electricity, power 
lines, water, and wastewater improvements and repairs.
    Naval Meteorology and Oceanography Command.--The Committee 
has provided an additional $19,500,000 for the Naval 
Meteorology and Oceanography Command. The Committee recognizes 
the requirement for adequate oceanographic survey data to 
support littoral operations and that the Navy has a survey 
backlog of 240 ship-years. Of these additional funds, 
$7,500,000 is provided for the National Oceanography 
Partnership Program to help reduce this backlog and $12,000,000 
is provided for equipment purchases, air operations, and 
contract support in support of survey operations and other data 
collection.
    U.S.S. Alabama.--In order to prevent environmental damage 
to the area surrounding the U.S.S. Alabama, the Committee 
directs the Department of the Navy to dispose of the fuel 
contained in the tanks and void areas on the U.S.S. Alabama. 
Funding for this project is to be provided from funds available 
in this account.

                Operation and Maintenance, Marine Corps

Appropriations, 1997....................................  $2,254,119,000
Budget estimate, 1998...................................   2,301,345,000
Committee recommendation................................   2,328,535,000

    The Committee recommends an appropriation of 
$2,328,535,000. The recommendation is $27,190,000 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 $20,000,000 are subject to standard reprogramming 
procedures.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
             OPERATION AND MAINTENANCE, MARINE CORPS                                                            
                                                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                            
    EXPEDITIONARY FORCES:                                                                                       
        OPERATIONAL FORCES......................................         345,077         364,077         +19,000
        FIELD LOGISTICS.........................................         183,660         183,660  ..............
        DEPOT MAINTENANCE.......................................         121,339         121,339  ..............
        BASE SUPPORT............................................         639,495         639,495  ..............
        MAINTENANCE OF REAL PROPERTY............................         263,593         286,193         +22,600
        JCS EXERCISES & HEADQUARTERS REDUC-  TION...............  ..............          -5,000          -5,000
        USMC PREPOSITIONING.....................................  ..............                                
        MARITIME PREPOSITIONING.................................          77,380          77,380  ..............
        NORWAY PREPOSITIONING...................................           3,603           3,603  ..............
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..............................       1,634,147       1,670,747         +36,600
                                                                 ===============================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                     
    ACCESSION TRAINING:                                                                                         
        RECRUIT TRAINING........................................           9,098           9,098  ..............
        OFFICER ACQUISITION.....................................             282             282  ..............
        BASE SUPPORT............................................          51,266          51,266  ..............
        MAINTENANCE OF REAL PROPERTY............................          18,115          19,715          +1,600
    BASIC SKILLS AND ADVANCED TRAINING:                                                                         
        SPECIALIZED SKILLS TRAINING.............................          28,647          33,147          +4,500
        FLIGHT TRAINING.........................................             156             156  ..............
        PROFESSIONAL DEVELOPMENT EDUCATION......................           5,803           5,803  ..............
        TRAINING SUPPORT........................................          78,749          77,649          -1,100
        BASE SUPPORT............................................          54,557          54,557  ..............
        MAINTENANCE OF REAL PROPERTY............................          25,051          27,251          +2,200
    RECRUITING AND OTHER TRAINING EDUCATION:                                                                    
        RECRUITING AND ADVERTISING..............................          74,442          74,442  ..............
        OFF-DUTY AND VOLUNTARY EDUCATION........................          15,063          15,063  ..............
        JUNIOR ROTC.............................................           9,006           9,006  ..............
        BASE SUPPORT............................................           8,100           8,100  ..............
        MAINTENANCE OF REAL PROPERTY............................           2,447           2,747            +300
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 3..............................         380,782         388,282          +7,500
                                                                 ===============================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                              
    SERVICEWIDE SUPPORT:                                                                                        
        SPECIAL SUPPORT.........................................         219,312         207,102         -12,210
        SERVICEWIDE TRANSPORTATION..............................          30,617          30,617  ..............
        ADMINISTRATION..........................................          26,105          26,105  ..............
        BASE SUPPORT............................................          12,370          12,370  ..............
        MAINTENANCE OF REAL PROPERTY............................           2,012           2,312            +300
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..............................         290,416         278,506         -11,910
                                                                 ===============================================
FOREIGN CURRENCY ADJUSTMENT.....................................          -4,000          -2,000          +2,000
ECONOMIC ASSUMPTIONS............................................  ..............          -7,000          -7,000
                                                                 ===============================================
      TOTAL, OPERATION AND MAINTENANCE, MARINE CORPS............       2,301,345       2,328,535         +27,190
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

    Adjustments to the budget activities are as follows:

Budget activity 1--Operating forces:s of dollars]
    Initial issue equipment...................................    10,000
    Personnel support equipment...............................     9,000
    JCS exercises and headquarters reduction..................    -5,000
Budget activity 3--Training and recruiting:
    Chemical biological incident response force [CBIRF].......     4,500
    Training infrastructure reductions........................    -1,100
Budget activity 4--Administration and servicewide support: 
    Pentagon reservation transfer.............................   -12,210
Other adjustments:
    Foreign currency adjustment...............................    -2,000
    Real property maintenance.................................    27,000
    Revised economic assumptions..............................    -7,000

                  Operation and Maintenance, Air Force

Appropriations, 1997.................................... $17,263,193,000
Budget estimate, 1998...................................  18,817,785,000
Committee recommendation................................  18,592,385,000

    The Committee recommends an appropriation of 
$18,592,385,000. This is $225,400,000 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 $20,000,000 are subject to standard reprogramming 
procedures.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
              OPERATION AND MAINTENANCE, AIR FORCE                                                              
                                                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                            
    AIR OPERATIONS:                                                                                             
        PRIMARY COMBAT FORCES...................................       2,719,301       2,571,801        -147,500
        PRIMARY COMBAT WEAPONS..................................         457,939         457,939  ..............
        COMBAT ENHANCEMENT FORCES...............................         253,099         256,199          +3,100
        AIR OPERATIONS TRAINING.................................         617,828         617,828  ..............
        COMBAT COMMUNICATIONS...................................         981,936         981,936  ..............
        BASE SUPPORT............................................       1,758,461       1,758,461  ..............
        MAINTENANCE OF REAL PROPERTY............................         576,409         626,009         +49,600
        JCS EXERCISES & HEADQUARTERS REDUC-  TION...............  ..............         -15,000         -15,000
        CLASSIFIED PROGRAMS UNDISTRIBUTED.......................  ..............             800            +800
    COMBAT RELATED OPERATIONS:                                                                                  
        GLOBAL C3I AND EARLY WARNING............................         712,916         712,916  ..............
        NAVIGATION/WEATHER SUPPORT..............................         131,608         131,608  ..............
        OTHER COMBAT OPS SUPPORT PROGRAMS.......................         205,449         205,449  ..............
        JCS EXERCISES...........................................          45,306          45,306  ..............
        MANAGEMENT/OPERATIONAL HEADQUARTERS.....................         113,400         113,400  ..............
        TACTICAL INTEL AND OTHER SPECIAL ACTIVITIES.............         231,411         231,411  ..............
    SPACE OPERATIONS:                                                                                           
        LAUNCH FACILITIES.......................................         226,956         226,956  ..............
        LAUNCH VEHICLES.........................................         105,576         105,576  ..............
        SPACE CONTROL SYSTEMS...................................         283,597         284,997          +1,400
        SATELLITE SYSTEMS.......................................          42,235          42,235  ..............
        OTHER SPACE OPERATIONS..................................          82,972          82,972  ..............
        BASE SUPPORT............................................         310,370         310,370  ..............
        MAINTENANCE OF REAL PROPERTY............................         119,869         130,269         +10,400
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..............................       9,974,638       9,877,438         -97,200
                                                                 ===============================================
BUDGET ACTIVITY 2: MOBILIZATION:                                                                                
    MOBILITY OPERATIONS:                                                                                        
        AIRLIFT OPERATIONS......................................       1,793,506       1,853,506         +60,000
        AIRLIFT OPERATIONS C3I..................................          16,267          16,267  ..............
        MOBILIZATION PREPAREDNESS...............................         145,868         145,868  ..............
        PAYMENTS TO TRANSPORTATION BUSINESS AREA................         514,000         514,000  ..............
        BASE SUPPORT............................................         427,865         427,865  ..............
        MAINTENANCE OF REAL PROPERTY............................         151,842         165,342         +13,500
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 2..............................       3,049,348       3,122,848         +73,500
                                                                 ===============================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                     
    ACCESSION TRAINING:                                                                                         
        OFFICER ACQUISITION.....................................          51,605          51,605  ..............
        RECRUIT TRAINING........................................           3,971           3,971  ..............
        RESERVE OFFICER TRAINING CORPS (ROTC)...................          47,611          47,611  ..............
        BASE SUPPORT (ACADEMIES ONLY)...........................          57,262          57,262  ..............
        MAINTENANCE OF REAL PROPERTY (ACADEMIES ONLY)...........          50,662          50,662  ..............
    BASIC SKILLS AND ADVANCED TRAINING:                                                                         
        SPECIALIZED SKILL TRAINING..............................         196,980         176,980         -20,000
        FLIGHT TRAINING.........................................         394,075         394,075  ..............
        PROFESSIONAL DEVELOPMENT EDUCATION......................          88,682          76,682         -12,000
        TRAINING SUPPORT........................................          63,296          51,296         -12,000
        BASE SUPPORT (OTHER TRAINING)...........................         370,436         370,436  ..............
        MAINTENANCE OF REAL PROPERTY (OTHER TRAINING)...........          87,072          96,372          +9,300
    RECRUITING, AND OTHER TRAINING AND EDUCATION:                                                               
        RECRUITING AND ADVERTISING..............................          55,059          55,059  ..............
        EXAMINING...............................................           2,212           2,212  ..............
        OFF DUTY AND VOLUNTARY EDUCATION........................          85,609          85,609  ..............
        CIVILIAN EDUCATION AND TRAINING.........................          67,183          67,183  ..............
        JUNIOR ROTC.............................................          26,052          26,052  ..............
                                                                 -----------------------------------------------
          TOTAL, BUDGET ACTIVITY 3..............................       1,647,747       1,613,047         -34,700
                                                                 ===============================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                              
    LOGISTICS OPERATIONS                                          ..............                                
        LOGISTICS OPERATIONS....................................         788,680         788,680  ..............
        TECHNICAL SUPPORT ACTIVITIES............................         390,267         390,267  ..............
        SERVICEWIDE TRANSPORTATION..............................         236,372         236,372  ..............
        BASE SUPPORT............................................         753,449         753,449  ..............
        MAINTENANCE OF REAL PROPERTY............................         194,617         213,217         +18,600
    SERVICEWIDE ACTIVITIES:                                                                                     
        ADMINISTRATION..........................................         126,642         126,642  ..............
        SERVICEWIDE COMMUNICATIONS..............................         297,316         300,016          +2,700
        PERSONNEL PROGRAMS......................................         100,343         100,343  ..............
        RESCUE AND RECOVERY SERVICES............................          55,881          55,881  ..............
        ARMS CONTROL............................................          29,565          29,565  ..............
        OTHER SERVICEWIDE ACTIVITIES............................         524,545         494,945         -29,600
        OTHER PERSONNEL SUPPORT.................................          33,623          33,623  ..............
        CIVIL AIR PATROL CORPORATION............................          17,927          22,327          +4,400
        BASE SUPPORT............................................         155,791         155,791  ..............
        MAINTENANCE OF REAL PROPERTY............................          10,728          12,828          +2,100
    SECURITY PROGRAMS: SECURITY PROGRAMS........................         510,046         482,846         -27,200
    SUPPORT TO OTHER NATIONS: INTERNATIONAL SUPPORT.............          13,260          13,260  ..............
                                                                 -----------------------------------------------
        TOTAL, BUDGET ACTIVITY 4................................       4,239,052       4,210,052         -29,000
                                                                 ===============================================
CIVILIAN PERSONNEL UNDER EXECUTION..............................  ..............         -82,000         -82,000
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE FUND..............         -50,000         -50,000  ..............
FOREIGN CURRENCY ADJUSTMENT.....................................         -43,000         -53,000         -10,000
ECONOMIC ASSUMPTIONS............................................  ..............         -46,000         -46,000
                                                                 ===============================================
      TOTAL, O&M, AIR FORCE.....................................      18,817,785      18,592,385        -225,400
          TRANSFER..............................................        (50,000)        (50,000)  ..............
                                                                 -----------------------------------------------
      TOTAL FUNDING AVAILABLE...................................    (18,867,785)    (18,642,385)      (-225,400)
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

    Adjustments to the budget activities are as follows:

Budget activity 1--Operating forces:s of dollars]
    AVDLR shortfall...........................................   240,000
    Contingency operations transfer...........................  -459,900
    SR-71.....................................................    30,000
    JCS exercises and headquarters reduction..................   -15,000
    B-52 attrition reserve....................................    42,400
    Classified programs.......................................       800
    NBC Defense Program.......................................     3,100
    Spacetrack................................................     1,400
Budget activity 2--Mobilization: AVDLR shortfall..............    60,000
Budget activity 3--Training and recruiting: Training 
    infrastructure reductions.................................   -44,000
Budget activity 4--Administration and servicewide activities:
    OSI shortfall.............................................     2,700
    Pentagon reservation transfer.............................   -29,600
    Civil Air Patrol..........................................     4,400
    Security programs.........................................   -27,200
Other adjustments:
    Civilian personnel underexecution.........................   -82,000
    Foreign currency adjustment...............................   -53,000
    Real property maintenance.................................   103,500
    Revised economic assumptions..............................   -46,000

                     O&M SUPPORT OF MILITARY FORCES

    AVDLR's.--The Committee understands that the Air Force 
currently foresees a significant increase in flying hours costs 
during fiscal year 1998 due to unanticipated AVDLR costing 
errors. The Committee has included a $300,000,000 increase in 
the active Air Force accounts for the combat and airlift flying 
hour programs, but will work with the Air Force to reallocate 
these funds to cover shortfalls identified in the Reserve and 
Guard components as required.
    B-52 aircraft.--The Committee provides a total of 
$57,300,000 to fund attrition reserve B-52 aircraft:

Operations and maintenance..............................     $42,400,000
Aircraft procurement; mods..............................      10,400,000

Military personnel

                                                               4,500,000

    Spacetrack.--The Committee recommends an increase of 
$1,400,000 for the Air Force Maui Space Surveillance System 
Center to support the AEOS system. The Committee notes that 
funding for this program was listed on the JCS unfunded 
priority list.
    Manufacturing Assistance Technology Pilot Program [M-
TAPP].--The Committee directs that $2,000,000 be provided out 
of appropriated funds for the Manufacturing Technology 
Assistance Pilot Program.

                        OTHER AIR FORCE PROGRAMS

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

CAP operations:
    O&M.................................................     $18,700,000
    Aircraft procurement................................       3,000,000
    Vehicle procurement.................................       1,000,000
    Comm/computer procurement...........................         600,000

    Counternarcotics

                                                               3,900,000

    The amounts delineated above are $4,400,000 above the 
amount requested by the Air Force for Civil Air Patrol 
operations and maintenance.
    Air Force Plant No. 3, Tulsa, OK.--The Committee is aware 
of the need to expedite the environmental remediation of Air 
Force Plant No. 3 in order to reap the economic benefit of its 
conveyance through continued job growth and development. In 
light of recently identified increased funding requirements for 
remediation, the Committee directs the Secretary of the Air 
Force to identify sufficient fiscal year 1998 funds to fast 
track the cleanup of Air Force Plant No. 3. In addition, the 
Committee directs the Secretary of the Air Force to submit a 
revised obligation and cleanup schedule for the facility to the 
congressional defense committees no later than November 15, 
1997.

                Operation and Maintenance, Defense-Wide

Appropriations, 1997.................................... $10,044,200,000
Budget estimate, 1998...................................  10,390,938,000
Committee recommendation................................  10,399,638,000

    The Committee recommends an appropriation of 
$10,399,638,000. This is $8,700,000 above 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 $20,000,000 are subject to standard reprogramming 
procedures.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
             OPERATION AND MAINTENANCE, DEFENSE-WIDE                                                            
                                                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES: JOINT CHIEFS OF STAFF......         541,169         454,007         -87,162
                                                                 -----------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................................         541,169         454,007         -87,162
                                                                 ===============================================
BUDGET ACTIVITY 2: MOBILIZATION: DEFENSE LOGISTICS AGENCY.......          27,260          27,260  ..............
                                                                 ===============================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                     
    DEFENSE ACQUISITION UNIVERSITY..............................          99,964          94,964          -5,000
    AMERICAN FORCES INFORMATION SERVICE.........................          11,586          11,586  ..............
    DEFENSE HUMAN RESOURCES FIELD ACTIVITY......................          14,200          14,200  ..............
    DEFENSE SPECIAL WEAPONS AGENCY..............................             475             475  ..............
    SPECIAL OPERATIONS COMMAND..................................          37,930          37,930  ..............
                                                                 -----------------------------------------------
      TOTAL, BUDGET ACTIVITY 3..................................         164,155         159,155          -5,000
                                                                 ===============================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                              
    AMERICAN FORCES INFORMATION SERVICE.........................          94,956          94,956  ..............
    CLASSIFIED AND INTELLIGENCE.................................       3,490,397       3,461,797         -28,600
    DEFENSE CONTRACT AUDIT AGENCY...............................         329,264         329,264  ..............
    DEFENSE FINANCE AND ACCOUNTING SERVICE......................          91,654          91,654  ..............
    DEFENSE HUMAN RESOURCES FIELD ACTIVITY......................         124,735         124,735  ..............
    DEFENSE INFORMATION SYSTEMS AGENCY..........................         725,858         690,258         -35,600
    DEFENSE INVESTIGATIVE SERVICE...............................         186,661         186,661  ..............
    DEFENSE LEGAL SERVICES AGENCY...............................           8,839           8,087            -752
    DEFENSE LOGISTICS AGENCY....................................       1,086,443       1,099,443         +13,000
    DEFENSE POW/MIA OFFICE......................................          14,195          14,195  ..............
    DEFENSE SPECIAL WEAPONS AGENCY..............................          87,837          87,837  ..............
    DEFENSE SUPPORT ACTIVITIES..................................          69,270          69,270  ..............
    DEFENSE TECHNOLOGY SECURITY ADMINISTRA-  TION...............          10,545          10,545  ..............
    DEPARTMENT OF DEFENSE DEPENDENTS EDUCA-  TION...............       1,321,196       1,321,496            +300
    JOINT CHIEFS OF STAFF.......................................         128,561         113,661         -14,900
    OFFICE OF ECONOMIC ADJUSTMENT...............................          40,217          40,217  ..............
    OFFICE OF THE SECRETARY OF DEFENSE..........................         406,894         399,056          -7,838
    CIVIL-MILITARY PROGRAMS.....................................  ..............          72,000         +72,000
    ON SITE INSPECTION AGENCY...................................         109,226          95,626         -13,600
    SPECIAL OPERATIONS COMMAND..................................          45,532          45,532  ..............
    WASHINGTON HEADQUARTERS SERVICE.............................         213,147         213,147  ..............
    CANADIAN CLEANUP............................................  ..............         -10,400         -10,400
    LEGACY......................................................  ..............          10,000         +10,000
    PENTAGON RENOVATION TRANSFER................................  ..............         137,652        +137,652
    REPAIRS TO FEDERALLY-FUNDED SCHOOLS.........................  ..............          10,000         +10,000
                                                                 -----------------------------------------------
      TOTAL, BUDGET ACTIVITY 4..................................       8,585,427       8,716,689        +131,262
                                                                 ===============================================
BUDGET ACTIVITY 5: SPECIAL OPERATIONS: SPECIAL OPERATIONS                                                       
 COMMAND........................................................       1,085,927       1,123,527         +37,600
                                                                 ===============================================
CIVILIAN PERSONNEL UNDER EXECUTION..............................  ..............         -42,000         -42,000
FOREIGN CURRENCY ADJUSTMENT.....................................  ..............         -10,000         -10,000
ECONOMIC ASSUMPTIONS............................................  ..............         -29,000         -29,000
                                                                 ===============================================
      TOTAL, OPERATION AND MAINTENANCE, DEFENSE-WIDE............      10,403,938      10,399,638          -4,300
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

    Adjustments to the budget activities are as follows:

Budget activity 1--Operating forces:s of dollars]
    Joint Chiefs of Staff.....................................   -48,000
        Partnership for Peace transfer........................   -44,162
        Exercise Northern Edge................................     5,000
Budget activity 3--Training and recruiting: Defense 
    Acquisition University....................................    -5,000
Budget activity 4--Administration and servicewide activities:
    Classified and intelligence; contingency operations 
      transfer................................................    -2,700
        Classified programs, undistributed....................   -25,900
    DISA; contingency operations transfer.....................   -28,600
        White House communications transfer to procurement....    -7,000
    Defense Legal Services Agency.............................      -752
    DLA; civilian personnel underexecution....................   -24,000
        PTAP..................................................    12,000
        Security locks........................................    25,000
    DODDS math teacher leadership development project.........       300
    Joint Chiefs of Staff.....................................   -14,900
    Office of the Secretary of Defense:
        PTAP funding transfer.................................   -12,000
        Partnership for Peace transfer........................    44,162
        Civil-military programs transfer......................   -40,000
    Civil-military programs...................................    72,000
    OSIA......................................................   -13,600
    Canadian cleanup..........................................   -10,400
    Legacy....................................................    10,000
    Pentagon reservation fund.................................   137,652
    Repairs to federally funded schools.......................    10,000
Budget activity 5--Special operations:
    Contingency operations transfer...........................    -3,200
    OPTEMPO...................................................    45,800
    JCS exercises and headquarters reduction..................    -5,000
Other adjustments:
    Civilian personnel underexecution.........................   -42,000
    Foreign currency fluctuation..............................   -10,000
    Revised economic assumptions..............................   -29,000

                         COMMITTEE ADJUSTMENTS

    SOCOM transfer.--A new budget activity has been established 
for funding the operation and maintenance requirements of 
Special Operations Command [SOCOM]. It is the intention of the 
Committee to provide further flexibility for SOCOM while 
maintaining proper funding for SOF capabilities and combat 
readiness. Additional funding of $26,400,000 has been provided 
to fund OPTEMPO and readiness requirements impacted by working 
capital fund price increases, $1,110,000 for systems 
survivability and $18,270,000 for emergent CP/WMD requirements.
    Partnership for Peace Program.--The Committee directs that 
funding for the Partnership for Peace Program be realigned from 
the Joint Chiefs of Staff to the Office of the Secretary of 
Defense. This action is intended to provide greater visibility 
for expenditures on this program and the Under Secretary of 
Defense (Comptroller) is directed to provide the congressional 
defense committees with quarterly execution data, commencing 
January 30, 1998. These reports should provide amounts 
obligated by date and a descriptive summary for each project or 
evolution.
    Northern Edge.--The Committee provides $5,000,000 for the 
U.S. Pacific Command's Northern Edge exercise.
    DLSA.--The Committee directs that travel and civilian 
personnel be reduced to fiscal year 1997 levels. The Department 
is further directed to reconsider the renovations requested in 
view of the reduced workload for this organization as a result 
of DOD downsizing and the significant potential for 
consolidation.
    Procurement Technical Assistance Program [PTAP].--In Senate 
Report 104-286, the Committee directed the Secretary of Defense 
to ensure that Defense Logistics Agency included funding for 
PTAP in its fiscal year 1998 request. Since this direction was 
not adhered to, $12,000,000 for this program shall be realigned 
from the Secretary of Defense to the Defense Logistics Agency 
for this program.
    DOD Teacher Innovation and Technology Education Center.--
The Committee is aware that the DOD Education Activity Office 
[DODEA] produced a planning document titled ``Technology 
Program Standards for the DODEA Technology Modernization 
Initiative''. Included in the document is a suggestion that a 
technology training academy be established in the Pacific. The 
Committee directs DODEA to provide an assessment of the 
technology training needs in the Pacific, and to prepare a 
comprehensive Technology Academy implementation plan to address 
these needs.
    Civil-military programs.--The Committee continues to 
support the Department's civil-military programs and 
$40,000,000 contained in the budget request for the Innovative 
Readiness Training [IRT], ChalleNGe, and Starbase Programs is 
provided as a separate activity. The Committee provides an 
additional $32,000,000 for these three programs.
    On Site Inspection Agency.--The Committee directs a 
reduction of $10,000,000 due to anticipated delays in treaty 
implementation. An additional $3,600,000 has been transferred 
to the overseas contingency operations transfer fund.
    Legacy Program.--The Committee recommends $10,000,000 for 
continuation of the Legacy Program. The Department is expected 
to program adequate funding for this program in fiscal year 
1999.
    DODDS mathematics teacher leadership development project.--
The Committee provides $300,000 to continue the DODDS 
mathematics teacher leadership development project.
    DPSC demolition.--The Committee directs that, out of the 
funds appropriated for Defense Logistics Agency, $7,500,000 
shall be made available for the demolition of the former DPSC 
building in Philadelphia, PA.
    Ethanol refueling.--The Committee directs the Defense Fuel 
Supply Center to commence modification of DOD installations 
fuel facilities to accommodate the refueling of ethanol-powered 
vehicles; $1,000,000 from within appropriated funds shall be 
utilized for this effort.

          Reserve and National Guard Operation and Maintenance

                    Summary of Committee Adjustments

    Inflation savings.--The Committee notes there are inflation 
savings in each of the Reserve component operation and 
maintenance appropriations. Because of the existing shortfalls 
in each of these accounts, the Committee directs that these 
savings be applied to these deficits.

                Operation and Maintenance, Army Reserve

Appropriations, 1997....................................  $1,119,436,000
Budget estimate, 1998...................................   1,192,891,000
Committee recommendation................................   1,212,891,000

    The Committee recommends an appropriation of 
$1,212,891,000. This is $20,000,000 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

Training......................................................    20,000
                    --------------------------------------------------------------
                    ____________________________________________________

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

Recommended appropriations

                                                               1,212,891

    Fort Chaffee.--The Committee directs the Army Reserve to 
provide $1,900,000 to support Reserve component training at 
Fort Chaffee.

                Operation and Maintenance, Navy Reserve

Appropriations, 1997....................................    $886,027,000
Budget estimate, 1998...................................     834,711,000
Committee recommendation................................     834,211,000

    The Committee recommends an appropriation of $834,211,000. 
This is $500,000 below the budget request.
    All recommended adjustments to the budget request, 
including those items discussed elsewherein this report, are 
summarized:

                        [In thousands of dollars]

                                                               Committee
        Program                                               adjustment

Transfer to contingency fund..................................      -500
                    --------------------------------------------------------------
                    ____________________________________________________

      Total Adjustments.......................................      -500

Recommended appropriation

                                                                 834,211

            Operation and Maintenance, Marine Corps Reserve

Appropriations, 1997....................................    $109,667,000
Budget estimate, 1998...................................     110,366,000
Committee recommendation................................     110,366,000

    The Committee recommends an appropriation of $110,366,000. 
This is equal to the budget request.

              Operation and Maintenance, Air Force Reserve

Appropriations, 1997....................................  $1,496,553,000
Budget estimate, 1998...................................   1,624,420,000
Committee recommendation................................   1,631,200,000

    The Committee recommends an appropriation of 
$1,631,200,000. This is $6,780,000 over the budget request.

                        [In thousands of dollars]

                                                               Committee
        Program                                              adjustments

C-130 force structure.........................................     6,780
                    --------------------------------------------------------------
                    ____________________________________________________

    Total adjustments.........................................     6,780

Recommended appropriations

                                                               1,631,200

             Operation and Maintenance, Army National Guard

Appropriations, 1997....................................  $2,254,477,000
Budget estimate, 1998...................................   2,258,932,000
Committee recommendation................................   2,449,932,000

    The Committee recommends an appropriation of 
$2,449,932,000. This is $191,000,000 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.............................   100,000
Distance learning project/information management..............    21,000
Training......................................................    45,000
Depot Maintenance.............................................    10,000
Stock funded secondary items..................................    15,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................   191,000

Recommended appropriations

                                                               2,449,932

    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 recommends $100,000,000 for this purpose in fiscal 
year 1998. 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.
    World Junior Biathlon Championships.--The World Junior 
Biathlon Championships will be held in Vermont beginning in 
February 1998. This event will involve approximately 25 
nations, totaling more than 200 foreign athletes and 150 
coaches. The Vermont National Guard and the Ethan Allen Nordic 
Center of Excellence will host the championship. The Committee 
encourages the Department of Defense to support this event.
    Distance learning initiative.--The Committee recommends an 
increase of $21,000,000 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. 
However, the Committee is concerned that this initiative has 
deviated from its original objectives. The program appears to 
be emphasizing State, local government, and community 
requirements rather than fulfilling the basic training 
requirements of Guard soldiers. Specifically, the expansion of 
the program to include the Junior Reserve Officers' Training 
Corps [JROTC] schools may not achieve this goal. The Committee 
reminds the Army National Guard that the primary purpose of 
this program is to improve overall readiness and create cost 
efficiencies within the Army National Guard. The Committee 
directs the National Guard Bureau to provide to the 
congressional defense committees a report on how the Department 
intends to allocate funding for this program in fiscal year 
1998 no later than November 15, 1997.
    Home station mobilization.--The Committee notes the success 
of the Oregon Army National Guard in testing home station 
mobilization and direct deployment to Germany for Operation 
Joint Endeavor. Studies indicated that home mobilization 
provides at least a 5-day advantage over centralized 
mobilization station and deployment processing. The Oregon unit 
deployed at 100 percent military occupational speciality 
qualification using in-state assets, reduced travel expenses, 
and arrived earlier and spent more time in the theater of 
operations. The Committee supports the expansion of this 
program during fiscal year 1998. The Committee directs the 
Department of the Army to provide a plan to expand home station 
mobilization to the congressional defense committees no later 
than December 10, 1997. This plan should address any 
recommended transfers of personnel or funding associated with 
increased home station mobilization of Army National Guard 
units.
    Army National Guard base support.--The Committee notes that 
the Army has transferred responsibility for several Army bases, 
such as Fort Chaffee, Fort Pickett, Indiantown Gap, Hunter-
Liggett, and Fort McClellan to the Army National Guard. The 
Army has a responsibility to ensure that the Army National 
Guard has adequate resources to maintain those training areas. 
The Committee directs the Department of the Army to provide 
sufficient funding in fiscal year 1998 to fully fund base 
operations at these installations.
    Training.--The Committee urges the National Guard to ensure 
its counterdrug activities are fully funded. In this regard, 
the Director, Army National Guard, may expend up to $25,000,000 
of additional funding provided for training by the Committee to 
satisfy this requirement.

             Operation and Maintenance, Air National Guard

Appropriations, 1997....................................  $2,716,379,000
Budget estimate, 1998...................................   2,991,219,000
Committee recommendation................................   3,010,282,000

    The Committee recommends an appropriation of 
$3,010,282,000. This is $19,063,000 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 force structure.........................................    13,063
C-130 operations..............................................     6,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    19,063

Recommended appropriations

                                                               3,010,282

    C-130 operations.--The Committee recognizes the increased 
demand placed on C-130 aircraft operations within the Air 
National Guard and has added $6,000,000 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.
    Search and rescue support.--The Committee directs that the 
Air National Guard provide support for Coast Guard seasonal 
search and rescue mission requirements at the Francis S. 
Gabreski Airport in Hampton, NY. Assistance to the Coast Guard 
will include access to necessary facilities, runway, hangar, 
operations center, berthing, and maintenance spaces. Seasonal 
Coast Guard access will be maintained between April 15 and 
October 15, 1998. The Director, Air National Guard and the 
Commandant of the Coast Guard shall enter into a memorandum of 
agreement [MOA] for use of these facilities and shall provide 
copies of that MOA to the House and Senate Committees on 
Appropriations not later than December 1, 1997.

             OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND

Appropriations, 1997....................................  $1,140,157,000
Budget estimate, 1998...................................   1,467,500,000
Committee recommendation................................   1,889,000,000

    The Committee retains this transfer fund for ongoing 
contingency operations in Southwest Asia and Bosnia and has 
shifted the amounts included in the services' fiscal year 1998 
operation and maintenance requests into this fund. Military 
personnel funds included in the fund in the budget request have 
been reallocated to the individual service accounts.
    The following table summarizes adjustments to the fiscal 
year 1998 budget request for the transfer fund:

------------------------------------------------------------------------
                                          Fiscal year       Committee   
               Category                   1998 request    recommendation
------------------------------------------------------------------------
O&M funding in support of Bosnia......   $1,253,900,000   $1,253,900,000
O&M funding in support of Southwest                                     
 Asia.................................  ...............      635,100,000
Military personnel, Bosnia............      213,600,000  ...............
                                       ---------------------------------
      Grand total.....................    1,467,500,000    1,889,000,000
------------------------------------------------------------------------

    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 notify the defense subcommittees 30 days in 
advance if the Department expects to exceed the total allotment 
for a given contingency and shall continue to provide quarterly 
reports to the defense subcommittees. These reports shall 
include amounts transferred and the requirements funded, as 
provided in supplemental and reprogramming requests.

                       Court of Military Appeals

Appropriations, 1997....................................      $6,797,000
Budget estimate, 1998...................................       6,952,000
Committee recommendation................................       6,952,000

    The Committee recommends an appropriation of $6,952,000 for 
activities of the Court of Military Appeals for fiscal year 
1998.

                       Environmental Restoration

Total Appropriations, 1997..............................  $1,314,016,000
Budget estimate, 1998...................................   1,263,937,000
Committee recommendation................................   1,296,937,000

    The Committee recommends a total amount for environmental 
restoration of $1,296,937,000. This is $33,000,000 above the 
budget estimate.
    Expiration of appropriations.--The fiscal year 1998 budget 
request proposed that funding in the environmental restoration 
appropriations remain available until completely expended. The 
Committee rejects this notion and believes that environmental 
remediation funding should be available for the same time 
period as the appropriation to which transferred.
    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.
    Cleanup of Canadian sites.--The budget request included a 
legislative proposal that would authorize payment of 
$100,000,000 to Canada for environmental cleanup of former 
United States sites in Canada. The Committee agrees with the 
fiscal year 1998 Defense authorization bill which does not 
include this provision.
    The Committee has provided the following funding for each 
service:

                    Environmental Restoration, Army

Appropriations, 1997....................................    $339,109,000
Budget estimate, 1998...................................     377,377,000
Committee recommendation................................     375,337,000

    The Committee recommends an appropriation of $375,337,000 
for fiscal year 1998. This amount is $2,000,000 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

Inflation savings.............................................    -2,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    -2,000

Recommended appropriation

                                                                 375,337

                    Environmental Restoration, Navy

Appropriations, 1997....................................    $287,788,000
Budget estimate, 1998...................................     277,500,000
Committee recommendation................................     275,500,000

    The Committee recommends an appropriation of $275,500,000 
for fiscal year 1998. This amount is $2,000,000 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

Inflation savings.............................................    -2,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    -2,000

Recommended appropriation

                                                                 275,500

                  Environmental Restoration, Air Force

Appropriations, 1997....................................    $394,010,000
Budget estimate, 1998...................................     378,900,000
Committee recommendation................................     376,900,000

    The Committee recommends an appropriation of $376,900,000 
for fiscal year 1998. This amount is $2,000,000 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

Inflation savings.............................................    -2,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    -2,000

Recommended appropriation

                                                                 376,900

                Environmental Restoration, Defense-wide

Appropriations, 1997....................................     $36,722,000
Budget estimate, 1998...................................      27,900,000
Committee recommendation................................      26,900,000

    The Committee recommends an appropriation of $26,900,00 for 
fiscal year 1998. This amount is $1,000,000 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

Inflation savings.............................................    -1,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    -1,000

Recommended appropriation

                                                                  26,900

         Environmental Restoration, Formerly Used Defense Sites

Appropriations, 1997....................................    $256,387,000
Budget estimate, 1998...................................     202,300,000
Committee recommendation................................     242,300,000

    The Committee recommends an appropriation of $242,300,000 
for fiscal year 1998. This amount is $40,000,000 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................................................    40,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    40,000

Recommended appropriation

                                                                 242,300

    Formerly used defense sites [FUDS].--Last year, the 
Committee directed that funding for the environmental 
restoration, FUDS be provided as a separate appropriation. The 
Committee commends the Army and the Corps of Engineers for 
their management of this program and provides an additional 
$40,000,000 to reduce the number of FUDS requiring 
investigation and remediation.

                  Former Soviet Union Threat Reduction

Appropriations, 1997....................................    $327,900,000
Budget estimate, 1998...................................     382,200,000
Committee recommendation................................     322,200,000

    This program was established in 1992 to promote 
denuclearization and reduce the threat of weapons proliferation 
in the former Soviet Union. The Committee has reduced this 
program by $60,000,000 in accordance with the action of the 
Senate Armed Services Committee.
    Russian nuclear submarine dismantlement and disposal.--
Based on consultations with the Commander of the Russian 
Pacific Fleet and the Commander of the United States Pacific 
Fleet, the Committee includes a new provision that makes 
$35,000,000 available only for support for dismantling and 
disposal of nuclear submarines and reactor components in the 
Russian far east. The Committee notes that virtually all 
funding provided under this heading in previous years has been 
obligated to support projects in European Russia. The Committee 
believes that to achieve the stated goals for this program, 
funding should be available to meet critical arms control and 
environmental safety needs in all parts of Russia.
    The funds provided for assistance in dismantling and 
disposing of nuclear submarines in the Russian far east should 
be managed by the United States Pacific Fleet, which has 
established effective working relations with the Russian Navy. 
The Commander, U.S. Pacific Fleet, shall provide the Committee 
with a plan for the obligation of these funds not later than 
January 15, 1998.
    Arctic military environmental cooperation [AMEC].--The 
Committee is encouraged by the efforts of AMEC to address 
important military environmental issues in the Arctic and 
directs that $5,000,000 of the funds appropriated in this 
account be used to continue cooperation with all appropriate 
militaries, particularly the Russian Federation, to address 
this effort. The Committee further directs that the Department 
allocate like funding in fiscal year 1999 for AMEC.

             Overseas Humanitarian, Disaster, and Civic Aid

Appropriations, 1997....................................     $49,000,000
Budget estimate, 1998...................................      80,130,000
Committee recommendation................................      40,130,000

    The Committee appropriates $40,130,000 for the Overseas 
Humanitarian, Disaster, and Civic Aid Program.
                               TITLE III

                              PROCUREMENT

                  Estimates and Appropriation Summary

    The President's Department of Defense fiscal year 1998 
title III procurement budget request totals $41,585,178,000. 
This request is $2,230,306,000 or 5.1 percent, below the 
amounts Congress appropriated in fiscal year 1997 for 
procurement activities.
    Title III of the accompanying bill recommends a total of 
$45,393,284,000 in new budget authority. The total amount 
recommended is an increase of $3,808,106,000 to the fiscal year 
1998 budget request. The following table summarizes the 
procurement budget estimates, the Committee recommendations, 
and a comparison.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1998 budget       Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
Aircraft procurement, Army...................................       1,029,459        1,356,959         +327,500 
    (By transfer--national defense stockpile)................        (133,000)  ...............       (-133,000)
Missile procurement, Army....................................       1,178,151        1,173,081           -5,070 
Procurement of weapons and tracked combat vehicles, Army.....       1,065,707        1,156,506          +90,799 
Procurement of ammunition, Army..............................         890,902        1,042,602         +151,700 
Other procurement, Army......................................       2,455,030        2,783,735         +328,705 
                                                              --------------------------------------------------
      Subtotal, Army.........................................       6,619,249        7,512,883         +893,634 
                                                              ==================================================
Aircraft procurement, Navy...................................       5,951,965        6,312,937         +360,972 
    (By transfer--national defense stockpile)................        (134,000)  ...............       (-134,000)
Weapons procurement, Navy....................................       1,136,293        1,138,393           +2,100 
Procurement of ammunition, Navy and Marine  Corps............         336,797          344,797           +8,000 
Shipbuilding and conversion, Navy............................       7,438,158        8,510,458       +1,072,300 
Other procurement, Navy                                             2,825,500        2,865,800          +40,300 
Procurement, Marine Corps....................................         374,306          440,106          +65,800 
                                                              --------------------------------------------------
      Subtotal, Navy.........................................      18,063,019       19,612,491       +1,549,472 
                                                              ==================================================
Aircraft procurement, Air Force..............................       5,684,847        6,375,847         +691,000 
    (By transfer--national defense stockpile)................        (133,000)  ...............       (-133,000)
Missile procurement, Air Force...............................       2,557,741        2,431,741         -126,000 
Procurement of Ammunition, Air Force.........................         403,984          400,984           -3,000 
Other procurement, Air Force.................................       6,561,253        6,653,053          +91,800 
                                                              --------------------------------------------------
      Subtotal, Air Force....................................      15,207,825       15,861,625         +653,800 
                                                              ==================================================
Procurement, Defense-wide....................................       1,695,085        1,753,285          +58,200 
National Guard and Reserve equipment.........................  ...............         653,000         +653,000 
                                                              --------------------------------------------------
      Total, procurement.....................................      41,585,178       45,393,284       +3,808,106 
----------------------------------------------------------------------------------------------------------------

                       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.

                       Aircraft Procurement, Army

Appropriations, 1997.................................... $1,348,434,000 
Budget estimate, 1998...................................  1,029,459,000 
    (By transfer--national defense stockpile)...........   (133,000,000)
Committee recommendation................................  1,356,959,000 

    The Committee recommends $1,356,959,000, an increase of 
$327,500,000 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.
    As in the case of the other aircraft procurement accounts, 
the Committee has denied the administration's request to sell 
additional assets from the national defense stockpile and use 
the proceeds to partially fund the three aircraft accounts. 
Current budget rules do no afford the Committee the option of 
using stockpile sales to augment discretionary appropriations. 
The $133,000,000 transfer, therefore, will not take place, but 
the Committee instead has provided sufficient budget authority 
to account for this budgetary shortfall.
    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)................................  ......      41,048  ......      41,048  ......  ...........
        C-XX (MEDIUM RANGE) AIRCRAFT...............  ......  ..........  ......      23,000  ......      +23,000
        GUARDRAIL COMMON SENSOR (TIARA)............  ......       3,388  ......       3,388  ......  ...........
    ROTARY:                                                                                                     
        UH-60 BLACKHAWK (MYP)......................      18     183,231      36     310,531     +18     +127,300
        UH-60 BLACKHAWK (MYP) (AP-CY)..............  ......      25,000  ......      25,000  ......  ...........
                                                    ------------------------------------------------------------
          TOTAL, AIRCRAFT..........................  ......     252,667  ......     402,967  ......     +150,300
MODIFICATION OF AIRCRAFT:                                                                                       
    GUARDRAIL MODS (TIARA).........................  ......      15,613  ......      15,613  ......  ...........
    AH1F MODS......................................  ......         451  ......         451  ......  ...........
    AH-64 MODS.....................................  ......      41,168  ......      41,168  ......  ...........
    CH-47 CARGO HELICOPTER MODS (MYP)..............  ......      63,854  ......      63,854  ......  ...........
    C-12 CARGO AIRPLANE MODS.......................  ......         613  ......       6,613  ......       +6,000
    OH-58 MODS.....................................  ......         748  ......         748  ......  ...........
    C-20 AIRCRAFT MODS.............................  ......         853  ......         853  ......  ...........
    LONGBOW........................................  ......     474,832  ......     474,832  ......  ...........
    LONGBOW (AP-CY)................................  ......      36,932  ......      36,932  ......  ...........
    UH-1 MODS......................................  ......       4,679  ......       2,679  ......       -2,000
    UH-60 MODS.....................................  ......      14,353  ......      23,853  ......       +9,500
    KIOWA WARRIOR..................................  ......      38,822  ......      53,822  ......      +15,000
    EH-60 QUICKFIX MODS............................  ......      38,140  ......      38,140  ......  ...........
    AIRBORNE AVIONICS..............................  ......      42,860  ......      42,860  ......  ...........
    ASE MODS.......................................  ......       4,578  ......      12,678  ......       +8,100
    MODIFICATIONS LESS THAN $2.0M..................  ......       1,735  ......       1,735  ......  ...........
                                                    ------------------------------------------------------------
      TOTAL, MODIFICATION OF AIRCRAFT..............  ......     780,231  ......     816,831  ......      +36,600
SPARES AND REPAIR PARTS............................  ......      27,546  ......      27,546  ......  ...........
SUPPORT EQUIPMENT AND FACILITIES:                                                                               
    GROUND SUPPORT AVIONICS: AIRCRAFT SURVIVABILITY                                                             
     EQUIPMENT.....................................  ......         905  ......         905  ......  ...........
    OTHER SUPPORT:                                                                                              
        AVIONICS SUPPORT EQUIPMENT.................  ......       2,701  ......       2,701  ......  ...........
        TRAINING DEVICES...........................  ......  ..........  ......      18,600  ......      +18,600
        COMMON GROUND EQUIPMENT....................  ......      30,636  ......      27,636  ......       -3,000
        AIRCREW INTEGRATED SYSTEMS.................  ......      12,472  ......      12,472  ......  ...........
        AIR TRAFFIC CONTROL........................  ......       5,802  ......       5,802  ......  ...........
        INDUSTRIAL FACILITIES......................  ......       2,049  ......       2,049  ......  ...........
        AIRBORNE COMMUNICATIONS....................  ......      47,450  ......      47,450  ......  ...........
                                                    ------------------------------------------------------------
          TOTAL, SUPPORT EQUIPMENT AND FACILITIES..  ......     102,015  ......     117,615  ......      +15,600
TRANSFER FROM NATIONAL DEFENSE STOCKPILE...........  ......    -133,000  ......  ..........  ......     +133,000
ECONOMIC ASSUMPTIONS...............................  ......  ..........  ......      -8,000  ......       -8,000
                                                    ============================================================
      TOTAL, AIRCRAFT PROCUREMENT, ARMY............  ......   1,029,459  ......   1,356,959  ......     +327,500
          TRANSFER.................................  ......   (133,000)  ......  ..........  ......   (-133,000)
                                                    ------------------------------------------------------------
      TOTAL FUNDING AVAILABLE......................  ......   1,162,459  ......   1,356,959  ......     +194,500
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    UH-60 Blackhawk [MYP].--The Committee recommends a total of 
$335,531,000 in procurement and advance procurement, which 
represents an increase of $127,300,000 to the budget request 
for a procurement of 36 Blackhawk utility helicopters and 
associated equipment. The Committee expects the procurement of 
these aircraft will result in the corresponding fielding of 36 
UH-60 series aircraft from the Army to the National Guard.
    C-12 cargo airplane mods.--The Army's budget request 
contains $613,000 for minor cockpit upgrades to the C-12 cargo 
aircraft. Because of budget constraints, the Army did not 
continue funding the ongoing avionics modernization of the 
Active, National Guard, and Reserve fleet of C-12 aircraft. The 
Committee recommends providing $6,613,000, an increase of 
$6,000,000 to continue this critical safety of flight program.
    UH-60 mods.--The Army's budget request includes $14,353,000 
for modifications to the UH-60 series helicopter. The Committee 
recommends providing $23,853,000, an increase of $9,500,000 
above the budget request.
    The Committee provides these additional funds only for the 
modification of UH-60 helicopters which perform extensive day 
and night operations, including search and rescue missions, in 
extreme cold temperatures, and over miles of open water. 
Necessary modifications include, but should not be limited to, 
high-performance hoists, forward looking infrared [FLIR], and 
aircraft cold weather heaters.
    Ground collision avoidance systems.--Military aircraft 
flight safety data show the occurrence each year of aviation 
accidents involving controlled flight into terrain [CFIT] due 
to the inadvertent distraction or unavoidable disorientation of 
pilots. Ground collision avoidance systems are designed to warn 
pilots of impending ground collisions due to these conditions. 
The Navy has officially recognized the inherent value of such a 
system and is procuring the ground proximity warning systems 
[GPWS] for much of its helicopter fleet. The Air Force has a 
goal for outfitting all Air Force aircraft with GPWS not later 
than 2005. Tactical missions of the Army routinely involve very 
low level, nap-of-the-Earth flight increasing both the risk of 
accidents and the value of a ground proximity warning system. 
The Committee directs the Secretary of the Army to study the 
utility, viability, and advantages of installing a ground 
collision system in Army aircraft and report the finding of the 
study to the congressional defense committees by February 1, 
1998. The report should include a comparison of the cost of 
providing such equipment for the Army aircraft with the burden 
of replacing lost aircraft and crews and should also include 
Army plans for acquisition of these systems.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
C-XX (UC-35)....................................................  ..............          23,000         +23,000
UH-1 mods.......................................................           4,679           2,679          -2,000
Kiowa warrior...................................................          38,822          53,822         +15,000
ASE mods........................................................           4,578          12,678          +8,100
Training devices................................................  ..............          18,600         +18,600
Common ground equipment.........................................          30,636          27,636          -3,000
----------------------------------------------------------------------------------------------------------------

                       Missile Procurement, Army

Appropriations, 1997....................................  $1,041,867,000
Budget estimate, 1998...................................   1,178,151,000
Committee recommendation................................   1,173,081,000

    The Committee recommends an appropriation of $1,173,081,000 
for the Army's fiscal year 1998 ``Missile procurement'' 
account. The Committee's recommended funding level is 
$5,070,000 below the President's budget request.
    This appropriation finances the procurement, production, 
modification, and modernization of missiles, equipment, 
including ordnance, ground handling equipment, spare parts, and 
accessories therefor; specialized equipment and training 
devices; expansion of public and private plants, including the 
land necessary therefor, for the foregoing purposes, and such 
lands and 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:                                                                              
        PATRIOT SYSTEM SUMMARY (MYP)..........        52     349,109        52     349,109  ........  ..........
        AVENGER SYSTEM SUMMARY................  ........  ..........  ........      13,000  ........     +13,000
    AIR-TO-SURFACE MISSILE SYSTEM: HELLFIRE                                                                     
     SYS SUMMARY..............................     1,465     279,687     1,465     268,987  ........     -10,700
    ANTI-TANK/ASSAULT MISSILE SYSTEM:                                                                           
        JAVELIN (AAWS-M) SYS SUM (MYP)........     1,080     143,112     1,080     143,112  ........  ..........
        TOW 2 SYSTEM SUMMARY..................  ........       1,326  ........       1,326  ........  ..........
        MLRS ROCKET...........................  ........       2,863  ........      19,863  ........     +17,000
        MLRS LAUNCHER SYSTEMS.................        29     102,649        35     127,749        +6     +25,100
        ARMY TACTICAL MSL SYS (ATACMS) (MYP)..       153      97,814       153      87,044  ........     -10,770
        BAT...................................       305      85,208       150      45,208      -155     -40,000
                                               -----------------------------------------------------------------
          TOTAL, OTHER MISSILES...............  ........   1,061,768  ........   1,055,398  ........      -6,370
MODIFICATION OF MISSILES:                                                                                       
    MODIFICATIONS:                                                                                              
        PATRIOT MODS..........................  ........      20,825  ........      20,825  ........  ..........
        STINGER MODS..........................  ........      12,411  ........      21,711  ........      +9,300
        ITAS/TOW MODS.........................  ........      62,755  ........      62,755  ........  ..........
        MLRS MODS.............................  ........       2,188  ........       2,188  ........  ..........
                                               -----------------------------------------------------------------
          TOTAL, MODIFICATION OF MIS-  SILES..  ........      98,179  ........     107,479  ........      +9,300
SPARES AND REPAIR PARTS.......................  ........      11,381  ........      11,381  ........  ..........
SUPPORT EQUIPMENT AND FACILITIES:                                                                               
    AIR DEFENSE TARGETS.......................  ........         998  ........         998  ........  ..........
    ITEMS LESS THAN $2.0 MILLION (MIS-  SILES)  ........         954  ........         954  ........  ..........
    MISSILE DEMILITARIZATION..................  ........       1,507  ........       1,507  ........  ..........
    PRODUCTION BASE SUPPORT...................  ........       3,364  ........       3,364  ........  ..........
                                               -----------------------------------------------------------------
      TOTAL, SUPPORT EQUIPMENT AND FACILITIES.  ........       6,823  ........  ..........     6,823  ..........
                                               =================================================================
ECONOMIC ASSUMPTIONS..........................  ........  ..........  ........      -8,000  ........      -8,000
                                               =================================================================
      TOTAL, MISSILE PROCUREMENT, ARMY........  ........   1,178,151  ........   1,173,081  ........      -5,070
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

    MLRS launcher systems.--The budget request includes 
$102,649,000 for the upgrade of 29 M270A1 multiple launch 
rocket system [MLRS] launchers. The Committee recommends 
providing $127,749,000, an increase of $25,100,000, to 
accelerate this important upgrade program.
    The Committee continues to support the Army's decision to 
convert MLRS battalion structure to a two by nine configuration 
and, therefore, provides additional funds to procure as many 
M270A1 upgrades as these funds allow.
    Army tactical missile system [ATACMS].--The President's 
budget request includes $97,814,000 to continue the multiyear 
procurement program of the Army's block IA tactical missile 
system. The Committee recommends providing $87,044,000, a 
reduction of $10,770,000 from the budget request.
    The General Accounting Office [GAO] has identified a total 
of $10,770,000 of excess funds within the ATACMS program as a 
result of favorable contract negotiations in fiscal years 1996 
and 1997 and similar estimated savings for the fiscal year 1998 
contract. The Committee expects these savings to be applied to 
the fiscal year 1998 program.
    BAT submunition.-- The budget request includes $85,208,000 
to produce 305 BAT submunitions in fiscal year 1998. The 
Committee recommends providing $45,208,000, a reduction of 
$40,000,000, for the procurement of 150 submunitions in fiscal 
year 1998.
    Because of continued development and testing problems with 
the BAT submunition, the Committee believes it reasonable to 
reduce the initial production rate of this system until such 
time as all problems are resolved.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Avenger (Slew-to-cue)...........................................  ..............          13,000         +13,000
Hellfire system summary.........................................         279,687         268,987         -10,700
MLRS rocket.....................................................           2,863          19,863         +17,000
Stinger mods....................................................          12,411          21,711          +9,300
----------------------------------------------------------------------------------------------------------------

        Procurement of Weapons and Tracked Combat Vehicles, Army

Appropriations, 1997....................................  $1,470,286,000
Budget estimate, 1998...................................   1,065,707,000
Committee recommendation................................   1,156,506,000

    The Committee recommends an appropriation of $1,156,506,000 
for the Army's fiscal year 1998 ``Procurement of weapons and 
tracked combat vehicles'' account. The Committee recommendation 
is $90,799,000 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...........................  .......       2,222  .......       2,222  ......  ..........
    BRADLEY BASE SUSTAINMENT......................  .......     125,591  .......     187,991  ......     +62,400
    BRADLEY FVS TRAINING DEVICES..................  .......       1,417  .......       1,417  ......  ..........
    ABRAMS TANK TRAINING DEVICES..................  .......      13,351  .......      13,351  ......  ..........
    COMMAND & CONTROL VEHICLE.....................        5      30,897        5      30,897  ......  ..........
MODIFICATION OF TRACKED COMBAT VEHICLES:                                                                        
    CARRIER, MOD..................................  .......      20,244  .......      40,244  ......     +20,000
    FIST VEHICLE (MOD)............................  .......      14,656  .......      14,656  ......  ..........
    BFVS SERIES (MOD).............................  .......      61,232  .......      61,232  ......  ..........
    HOWITZER, MED SP FT 155MM M109A6 (MOD)........  .......      18,706  .......      18,706  ......  ..........
    FAASV PIP TO FLEET............................  .......       1,922  .......       1,922  ......  ..........
    IMPROVED RECOVERY VEHICLE (M88 MOD)...........  .......      28,601  .......      14,000  ......     -14,601
    HEAVY ASSAULT BRIDGE (HAB) SYS (MOD)..........  .......      42,205  .......      42,205  ......  ..........
    M1 ABRAMS TANK (MOD)..........................  .......      29,843  .......      29,843  ......  ..........
    ABRAMS UPGRADE PROGRAM........................  .......     594,856  .......     594,856  ......  ..........
    MODIFICATIONS LESS THAN $2.0M (TCV-WTCV)......  .......       1,030  .......       1,030  ......  ..........
SUPPORT EQUIPMENT AND FACILITIES:                                                                               
    ITEMS LESS THAN $2.0 MILLION (TCV-WTCV).......  .......         139  .......         139  ......  ..........
    PRODUCTION BASE SUPPORT (TCV-WTCV)............  .......       8,942  .......       8,942  ......  ..........
                                                   -------------------------------------------------------------
      TOTAL, TRACKED COMBAT VEHICLES..............  .......     995,854  .......   1,063,653  ......     +67,799
WEAPONS AND OTHER COMBAT VEHICLES:                                                                              
    MACHINE GUN, 5.56MM (SAW).....................      406       5,569      406       5,569  ......  ..........
    GRENADE LAUNCHER, AUTO, 40MM, MK19-3..........  .......  ..........  .......      13,000  ......     +13,000
    M16 RIFLE.....................................   11,297       5,089   11,297       5,089  ......  ..........
    5.56 CARBINE M4...............................    7,484       5,089    7,484       5,089  ......  ..........
    MODIFICATION OF WEAPONS AND OTHER COMBAT VEHI:                                                              
        M4 CARBINE MODS...........................  .......       2,152  .......       2,152  ......  ..........
        MEDIUM MACHINE GUN (MODS).................  .......  ..........  .......      15,000  ......     +15,000
        M119 MODIFICATIONS........................  .......       4,977  .......       4,977  ......  ..........
        M16 RIFLE MODS............................  .......       7,603  .......       7,603  ......  ..........
        MODIFICATIONS LESS THAN $2.0M (WOCV-WTCV).  .......       1,406  .......       1,406  ......  ..........
    SUPPORT EQUIPMENT AND FACILITIES:                                                                           
        ITEMS LESS THAN $2.0 MILLION (WOCV-WTCV)..  .......       1,215  .......       1,215  ......  ..........
        PRODUCTION BASE SUPPORT (WOCV-  WTCV).....  .......       6,195  .......       6,195  ......  ..........
        INDUSTRIAL PREPAREDNESS...................  .......       5,758  .......       5,758  ......  ..........
        SMALL ARMS (SOLDIER ENH PROG).............  .......       4,178  .......       4,178  ......  ..........
                                                   -------------------------------------------------------------
          TOTAL, WEAPONS AND OTHER COMBAT VEHICLES  .......      49,231  .......      77,231  ......     +28,000
SPARE AND REPAIR PARTS:                                                                                         
    SPARES AND REPAIR PARTS (WTCV)................  .......      20,622  .......      20,622  ......  ..........
    ECONOMIC ASSUMPTIONS..........................  .......  ..........  .......      -5,000  ......      -5,000
                                                   =============================================================
      TOTAL, PROCUREMENT OF W&TCV, ARMY...........  .......   1,065,707  .......   1,156,506  ......     +90,799
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

    Bradley base sustainment.--The Army's budget request 
includes $125,591,000 to sustain the Bradley fighting vehicle 
production base through the continued upgrade of older 
generation Bradley fighting vehicles. The Committee recommends 
providing $187,991,000, an increase of $62,400,000 above the 
President's request, to ensure sufficient quantities to 
maintain an economic production base.
    Improved recovery vehicle [IRV].--The Army's budget request 
includes $28,606,000 for the modification of 12 M-88 series 
recovery vehicles to the M-88A2 IRV configuration. The 
Committee recommends $14,000,000 be provided in fiscal year 
1998 for these activities, a decrease of $14,601,000 from the 
request.
    Because of its inability to meet all validated 
requirements, the M-88A2 IRV is not being accepted by Army 
units. The Committee believes the modification rates of M-88's 
should be slowed until all requirements are met and the user 
will accept the vehicles. To assist in meeting these design 
requirements, the Committee has added $5,700,000 within the 
Army's ``Research and development'' account to initiate the 
traction enhancement program necessary for the IRV to meet user 
requirements.
    Small arms procurement and mobilization policy.--The 
Secretary of Defense is directed to restrict the procurement of 
all small arms production systems, components and parts, 
replenishment items, all service, and all systems support 
activities to the small arms mobilization base for reasons of 
national security. The small arms mobilization base means the 
firms comprising the small arms production industrial base, as 
described in the plan entitled ``Preservation of Critical 
Elements of the Small Arms Industrial Base'' dated January 8, 
1994, which was prepared by the Army Science Board. In exchange 
for managing all aspects of an awarded long-term small arms 
weapons system contract, the small arms mobilization base will 
agree to manage social/economic goals and to retain the 
necessary facilities and resources to support a small arms 
weapon system, which include, but are not limited to, research 
and development, production, procurement, replenishment, repair 
parts, overhaul-repair, warehouse-distribution, product 
engineering, and selected training for systems support.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Carrier, mod....................................................          20,244          40,244         +20,000
Grenade launcher, MK-19-3.......................................  ..............          13,000         +13,000
Medium machinegun (mods)........................................  ..............          15,000         +15,000
----------------------------------------------------------------------------------------------------------------

                    Procurement of Ammunition, Army

Appropriations, 1997....................................  $1,127,149,000
Budget estimate, 1998...................................     890,902,000
Committee recommendation................................   1,042,602,000

    The Committee recommends an appropriation of $1,042,602,000 
for Army ammunition for fiscal year 1998. This is $151,700,000 
above 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......................  ......      63,588  ......      63,588  ......  ..........
        CTG 5.56MM ARMOR PIERCING XM995.............   1,406       1,976   1,406       1,976  ......  ..........
        CTG, 7.62MM, ALL TYPES......................  ......       1,136  ......       1,136  ......  ..........
        CTG 7.62MM ARMOR PIERCING XM993.............   1,013       1,994   1,013       1,994  ......  ..........
        CTG, 9MM, ALL TYPES.........................  ......       4,229  ......       4,229  ......  ..........
        CTG, .45 CAL, ALL TYPES.....................  ......          73  ......          73  ......  ..........
        CTG, .50 CAL, ALL TYPES.....................  ......      19,977  ......      19,977  ......  ..........
        CTG CAL .50 API MK211 MOD 0.................     286       1,994     286       1,994  ......  ..........
        CTG, 25MM, ALL TYPES........................  ......      88,166  ......      88,166  ......  ..........
        CTG, 30MM, ALL TYPES........................  ......      10,357  ......      10,357  ......  ..........
        CTG, 40MM, ALL TYPES........................  ......      26,203  ......      33,203  ......      +7,000
    MORTAR AMMUNITION:                                                                                          
        CTG MORTAR 60MM SMOKE WP M722...............      23       4,744      23       4,744  ......  ..........
        CTG MORTAR 120MM FULL RANGE PRACTICE M931...      59      24,432      59      24,432  ......  ..........
        CTG MORTAR 120MM HE M934 W/MO FUZE..........      32      29,908      32      44,908  ......     +15,000
    TANK AMMUNITION:                                                                                            
        CTG 120MM APFSDS-T M829A2/M829E3............      21      72,920      21      72,920  ......  ..........
        CTG TANK 120MM TP-T M831/M831A1.............      80      52,226      80      62,026  ......      +9,800
        CTG TANK 120MM TPCSDS-T M865................     184     111,653     184     124,353  ......     +12,700
    ARTILLERY AMMUNITION:                                                                                       
        CTG ARTY 75MM BLANK M337A1..................      70       2,964      70       2,964  ......  ..........
        CTG ARTY 105MM DPICM XM915..................  ......  ..........  ......      10,000  ......     +10,000
        PROJ ARTY 155MM SMOKE WP M825...............  ......      12,586  ......      12,586  ......  ..........
        PROJ ARTY 155MM SADARM M898.................     507      67,909     507      67,909  ......  ..........
    ARTILLERY FUZES: FUZE MULTI OPTION..............  ......  ..........  ......      20,000  ......     +20,000
    MINES:                                                                                                      
        MINE AT/AP M87 (VOLCANO)....................  ......  ..........  ......      20,000  ......     +20,000
        WIDE AREA MUNITIONS.........................     215      15,323     215      15,323  ......  ..........
    ROCKETS: ROCKET, HYDRA 70, ALL TYPES............  ......      12,067  ......      48,267  ......     +36,200
    OTHER AMMUNITION:                                                                                           
        DEMOLITION MUNITIONS, ALL TYPES.............  ......      18,766  ......      18,766  ......  ..........
        GRENADES, ALL TYPES.........................  ......      14,637  ......      14,637  ......  ..........
        SIGNALS, ALL TYPES..........................  ......       7,862  ......       7,862  ......  ..........
        SIMULATORS, ALL TYPES.......................  ......       4,573  ......       4,573  ......  ..........
    MISCELLANEOUS:                                                                                              
        AMMO COMPONENTS, ALL TYPES..................  ......       4,823  ......       4,823  ......  ..........
        CAD/PAD ALL TYPES...........................  ......       1,087  ......       1,087  ......  ..........
        ITEMS LESS THAN $2 MILLION..................  ......         819  ......         819  ......  ..........
        AMMUNITION PECULIAR EQUIPMENT...............  ......       8,627  ......       8,627  ......  ..........
        FIRST DESTINATION TRANSPORTATION  (AMMO)....  ......       6,558  ......       6,558  ......  ..........
                                                     -----------------------------------------------------------
            TOTAL, AMMUNITION.......................  ......     694,177  ......     824,877  ......    +130,700
AMMUNITION PRODUCTION BASE SUPPORT:                                                                             
    PRODUCTION BASE SUPPORT:                                                                                    
        PROVISION OF INDUSTRIAL FACILITIES..........  ......      45,857  ......      45,857  ......  ..........
        LAYAWAY OF INDUSTRIAL FACILITIES............  ......      16,750  ......      16,750  ......  ..........
        MAINTENANCE OF INACTIVE FACILITIES..........  ......      23,000  ......      23,000  ......  ..........
        CONVENTIONAL AMMO DEMILITARIZATION..........  ......     106,118  ......      93,118  ......     -13,000
        ARMS INITIATIVE.............................  ......       5,000  ......      45,000  ......     +40,000
                                                     -----------------------------------------------------------
          TOTAL, AMMUNITION PRODUCTION BASE SUPPORT.  ......     196,725  ......     223,725  ......     +27,000
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......      -6,000  ......      -6,000
                                                     ===========================================================
      TOTAL, PROCUREMENT OF AMMUNITION, ARMY........  ......     890,902  ......   1,042,602  ......    +151,700
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

    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 Army to address budget 
shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Cartridge:                                                                                                      
    40 mm, all types............................................          26,203          33,203          +7,000
    Mortar 120 mm M-934.........................................          29,908          44,908         +15,000
    Artillery 105 mm XM-915.....................................  ..............          10,000         +10,000
Mine AT/AP M-87 (VOLCANO).......................................  ..............          20,000         +20,000
----------------------------------------------------------------------------------------------------------------

    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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Conventional ammunition demilitarization........................         106,118          93,118         -13,000
----------------------------------------------------------------------------------------------------------------

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Cartridge--tank 120 mm:                                                                                         
    M-831/M-831A1...............................................          52,226          62,026          +9,800
    M-865.......................................................         111,653         124,353         +12,700
Fuze artillery M-767............................................  ..............          20,000         +20,000
Rocket, hydra 70, all types.....................................          12,067          48,267         +36,200
ARMS initiative.................................................           5,000          45,000         +40,000
----------------------------------------------------------------------------------------------------------------

                        Other Procurement, Army

Appropriations, 1997....................................  $3,172,485,000
Budget estimate, 1998...................................   2,455,030,000
Committee recommendation................................   2,783,735,000

    The Committee recommends an appropriation of $2,783,735,000 
for the Army's fiscal year 1998 ``Other procurement'' account, 
$328,705,000 above the President's budget.
    This appropriation finances the acquisition 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...............  ......       8,053  ......      18,053  .......     +10,000
        SEMITRAILER FB BB/CONT TRANS 22 1/2 T......     350       9,361     350       9,361  .......  ..........
        SEMITRAILER LB 40T M870A1 (CCE)............       3         991       3         991  .......  ..........
        SEMITRAILER, TANK, 5000G...................      74       7,581      74       7,581  .......  ..........
        SEMITRAILER, TANK, 7500G, BULKHAUL.........     231      10,408     231      10,408  .......  ..........
        SEMITRAILER VAN CGO SUPPLY 12T 4WHL M129A2C      51       4,296      51       4,296  .......  ..........
        HI MOB MULTI-PURP WHLD VEH (HMMWV)(MYP)....     774      66,233     774     141,233  .......     +75,000
        FAMILY OF MEDIUM TACTICAL VEH (MYP)........   1,506     209,446   1,506     253,446  .......     +44,000
        FAMILY OF HEAVY TACTICAL VEHICLES  (MYP)...  ......       9,071  ......     137,071  .......    +128,000
        ARMORED SECURITY VEHICLES (COMBAT SPT)                                                                  
         TACTIC....................................      25       9,470      25       9,470  .......  ..........
        TRUCK, TRACTOR, LINE HAUL, M915/M916.......     293      36,079     293  ..........  .......     -36,079
        MODIFICATION OF IN SVC EQUIP...............  ......       3,610  ......       3,610  .......  ..........
        ITEMS LESS THAN $2.0 MILLION (TAC VEH).....  ......         189  ......         189  .......  ..........
    NON-TACTICAL VEHICLES:                                                                                      
        SUPPORT EQUIPMENT AND FACILITIES:                                                                       
            SYSTEM FIELDING SUPPORT PEO............  ......       1,876  ......       1,876  .......  ..........
            PROJECT MANAGEMENT SUPPORT.............  ......         596  ......         596  .......  ..........
            SYSTEM FIELDING SUPPORT (TACOM)........  ......         934  ......         934  .......  ..........
                                                    ------------------------------------------------------------
              TOTAL, TACTICAL AND SUPPORT VEHICLES.  ......     378,194  ......     599,115  .......    +220,921
COMMUNICATIONS AND ELECTRONICS EQUIPMENT:                                                                       
    COMM--JOINT COMMUNICATIONS: JCSE EQUIPMENT                                                                  
     (USREDCOM)....................................  ......       3,075  ......       3,075  .......  ..........
COMM--SATELLITE COMMUNICATIONS:                                                                                 
    DEFENSE SATELLITE COMMUNICATIONS SYSTEM (SPAC..  ......      87,643  ......  ..........   87,643  ..........
    SAT TERM, EMUT (SPACE).........................     207       7,264     207       7,264  .......  ..........
    NAVSTAR GLOBAL POSITIONING SYSTEM (SPACE)......      17       6,796      17       6,796  .......  ..........
    GROUND COMMAND POST............................  ......         589  ......         589  .......  ..........
    SMART-T (SPACE)................................  ......      22,762  ......      22,762  .......  ..........
    SCAMP (SPACE)..................................  ......       4,305  ......      16,605  .......     +12,300
    GLOBAL BRDCST SVC--GBS.........................  ......       4,967  ......       4,967  .......  ..........
    MOD OF IN-SVC EQUIP (TAC SAT)..................  ......       2,021  ......       2,021  .......  ..........
    COMM--COMBAT SUPPORT COMM:                                                                                  
        COMM--C3 SYSTEM: ARMY GLOBAL CMD & CONTROL                                                              
         SYS (AGCCS)...............................  ......      17,315  ......      17,315  .......  ..........
    COMM--COMBAT COMMUNICATIONS:                                                                                
        ARMY DATA DISTRIBUTION SYSTEM (ADDS).......  ......      57,165  ......      94,465  .......     +37,300
        SINCGARS FAMILY............................  ......     290,164  ......     290,164  .......  ..........
        JOINT TACTICAL AREA COMMS SYS..............  ......      10,684  ......      10,684  .......  ..........
        ACUS MOD PROGRAM (WIN-T/T).................  ......      82,391  ......     115,391  .......     +33,000
        C-E CONTINGENCY/FIELDING EQUIP.............  ......       2,023  ......       2,023  .......  ..........
        SOLDIER ENHANCEMENT PROGRAM COMM/                                                                       
         ELECTRONICS...............................  ......       1,003  ......       1,003  .......  ..........
        COMBAT SURVIVOR EVADER LOCATOR  (CSEL).....  ......       5,677  ......       5,677  .......  ..........
    COMM--INTELLIGENCE COMM: CI AUTOMATION                                                                      
     ARCHITECTURE..................................  ......       2,297  ......       2,297  .......  ..........
    INFORMATION SECUTITY:                                                                                       
        TSEC--ARMY KEY MGT SYS (AKMS)..............  ......       4,714  ......       4,714  .......  ..........
        INFORMATION SYSTEM SECURITY PROGRAM--ISSP..  ......      10,208  ......      10,208  .......  ..........
    COMM--LONG HAUL COMMUNICATIONS:                                                                             
        TERRESTRIAL TRANSMISSION...................  ......      20,811  ......      20,811  .......  ..........
        BASE SUPPORT COMMUNICATIONS................  ......       1,053  ......       1,053  .......  ..........
        ARMY DISN ROUTER...........................  ......       2,991  ......       2,991  .......  ..........
        ELECTROMAG COMP PROG (EMCP)................  ......         469  ......         469  .......  ..........
        WW TECH CON IMP PROG (WWTCIP)..............  ......         944  ......         944  .......  ..........
    COMM--BASE COMMUNICATIONS:                                                                                  
        INFORMATION SYSTEMS........................  ......      20,498  ......      51,498  .......     +31,000
        DEFENSE MESSAGE SYSTEM (DMS)...............  ......       7,962  ......       7,962  .......  ..........
        LOCAL AREA NETWORK (LAN)...................  ......      17,576  ......      17,576  .......  ..........
        PENTAGON INFORMATION MGT AND TELE-  COM....  ......      28,249  ......      28,249  .......  ..........
    ELECT EQUIP--NAT FOR INT PROG (NFIP):                                                                       
        FOREIGN COUNTERINTELLIGENCE PROG  (FCI)....  ......       3,897  ......       3,897  .......  ..........
        GENERAL DEFENSE INTELL PROG (GDIP).........  ......      18,856  ......      18,856  .......  ..........
    ELECT EQUIP--TACT INT REL ACT (TIARA):                                                                      
        ALL SOURCE ANALYSIS SYS (ASAS) (TIARA).....  ......       7,772  ......       7,772  .......  ..........
        JTT/CIBS-M (TIARA).........................      56      11,438      56       6,438  .......      -5,000
        IEW--GND BASE COMMON SENSORS  (TIARA)......  ......      26,817  ......  ..........  .......     -26,817
        JOINT STARS (ARMY) (TIARA).................  ......     118,873  ......     118,873  .......  ..........
        NATO-AGS...................................  ......      26,153  ......      26,153  .......  ..........
        INTEGRATED BROADCAST TERMINAL MODS (TIARA).  ......       3,294  ......       3,294  .......  ..........
        DIGITAL TOPOGRAPHIC SPT SYS (DTSS) (TIARA).       4       7,465       4       7,465  .......  ..........
        TACTICAL EXPLOITATION OF NATIONAL                                                                       
         CAPABILITIE...............................  ......       1,679  ......       1,679  .......  ..........
        JOINT TACTICAL GROUND STATION MODS.........  ......       2,913  ......       2,913  .......  ..........
        TROJAN (TIARA).............................  ......       3,828  ......       3,828  .......  ..........
        MOD OF IN-SVC EQUIP (INTEL SPT) (TIARA)....  ......       1,676  ......       1,676  .......  ..........
        ITEMS LESS THAN $2.0M (TIARA)..............  ......         526  ......         526  .......  ..........
    ELECT EQUIP--ELECTRONIC WARFARE (EW):                                                                       
     COUNTERINTELLIGENCE/SECURITY COUNTERMEASURES..  ......       2,325  ......       2,325  .......  ..........
    ELECT EQUIP--TACTICAL SURV. (TAC SURV):                                                                     
        SENTINEL...................................      12      41,014      12      61,214  .......     +20,200
        NIGHT VISION DEVICES.......................  ......      85,312  ......     121,312  .......     +36,000
        ARTILLERY ACCURACY EQUIP...................  ......       4,548  ......       4,548  .......  ..........
        MOD OF IN-SVC EQUIP (TAC SURV).............  ......       1,223  ......       1,223  .......  ..........
        INTEGRATED MET SYS SENSORS (IMETS)--TIARA..       2       1,379       2       1,379  .......  ..........
        SHF TERM...................................  ......      14,328  ......      14,328  .......  ..........
    ELECT EQUIP--TACTICAL C2 SYSTEMS:                                                                           
        ADV FIELD ARTILLERY TACT DATA SYS (AFATDS).     253      33,245     253      33,245  .......  ..........
        FIRE SUPPORT ADA CONVERSION................  ......       3,306  ......       3,306  .......  ..........
        CMBT SVC SUPT CONTROL SYS (CSSCS)..........      50       5,759      50       5,759  .......  ..........
        FAAD C2....................................       3      13,080       3      13,080  .......  ..........
        FORWARD ENTRY DEVICE (FED).................  ......       2,382  ......       2,382  .......  ..........
        LIFE CYCLE SOFTWARE SUPPORT (LCSS).........  ......       1,978  ......       1,978  .......  ..........
        LOGTECH....................................  ......       3,358  ......       3,358  .......  ..........
        TC AIMS II.................................  ......       2,197  ......       2,197  .......  ..........
        ISYSCON EQUIPMENT..........................  ......      10,645  ......      10,645  .......  ..........
        MANEUVER CONTROL SYSTEM (MCS)..............     145      15,699     145  ..........  .......     -15,699
        STAMIS TACTICAL COMPUTERS (STACOMP)........   1,615      36,124   1,615      36,124  .......  ..........
        STANDARD INTEGRATED CMD POST SYS-  TEM.....  ......      26,551  ......      26,551  .......  ..........
    ELECT EQUIP--AUTOMATION:                                                                                    
        ARMY TRAINING XX1 MODERNIZATION............  ......      25,238  ......      25,238  .......  ..........
        AUTOMATED DATA PROCESSING EQUIP............  ......     125,099  ......     125,099  .......  ..........
        RESERVE COMPONENT AUTOMATION SYS (RCAS)....  ......     114,323  ......      84,323  .......     -30,000
    ELECT EQUIP--AUDIO VISUAL SYS (A/V):                                                                        
        AFRTS......................................  ......         459  ......         459  .......  ..........
        ITEMS LESS THAN $2.0 MILLION (A/V).........  ......       2,624  ......       2,624  .......  ..........
    ELECT EQUIP-TEST MEAS&DIAG EQUIP (TMDE):                                                                    
     CALIBRATION SETS EQUIPMENT....................  ......  ..........  ......      25,000  .......     +25,000
    ELECT EQUIP--SUPPORT: PRODUCTION BASE SUPPORT                                                               
     (C-E).........................................  ......         418  ......         418  .......  ..........
                                                    ------------------------------------------------------------
        TOTAL, COMMUNICATIONS AND ELECTRONICS                                                                   
         EQUIPMENT.................................  ......   1,531,417  ......   1,648,701  .......    +117,284
OTHER SUPPORT EQUIPMENT:                                                                                        
    CHEMICAL DEFENSIVE EQUIPMENT:                                                                               
        GEN SMK MECH:MTRZD DUAL PURP M56...........      70      12,560      70      12,560  .......  ..........
        GENERATOR, SMOKE, MECH M58.................      34       9,159      34       9,159  .......  ..........
        LT VEH OBSCURANT SMK SYS...................     486       2,164     486       2,164  .......  ..........
    BRIDGING EQUIPMENT: RIBBON BRIDGE..............  ......       4,200  ......       4,200  .......  ..........
    ENGINEER (NON-CONSTRUCTION) EQUIPMENT:                                                                      
        METALLIC MINE DETECTOR, VEHICLE MOUNTED....      10      12,574      10      12,574  .......  ..........
        BN COUNTERMINE SIP.........................  ......       3,357  ......       3,357  .......  ..........
    COMBAT SERVICE SUPPORT EQUIPMENT:                                                                           
        AIR CONDITIONERS VARIOUS SIZE/CAPA-  CITY..  ......       1,468  ......       1,468  .......  ..........
        ARMY SPACE HEATER, 120,000 BTU (ASH).......      94         930      94         930  .......  ..........
        SOLDIER ENHANCEMENT........................  ......       1,709  ......       1,709  .......  ..........
        FORCE PROVIDER.............................       2      11,633       2      11,633  .......  ..........
        ITEMS LESS THAN $2.0 MILLION (CSS-EQ)......  ......       2,020  ......       2,020  .......  ..........
    PETROLEUM EQUIPMENT:                                                                                        
        TANK ASSEMBLY FAB COLLAPSIBLE POL 10000G...     116         949     116         949  .......  ..........
        INLAND PETROLEUM DISTRIBUTION SYS-  TEM....  ......       1,037  ......       1,037  .......  ..........
        ITEMS LESS THAN $2.0 MILLION (POL).........  ......       6,275  ......       6,275  .......  ..........
    WATER EQUIPMENT: ITEMS LESS THAN $2.0 MILLION                                                               
     (WATER EQ)....................................  ......       2,862  ......       2,862  .......  ..........
    MEDICAL EQUIPMENT: COMBAT SUPPORT MEDI-  CAL...  ......      11,808  ......      18,808  .......      +7,000
    MAINTENANCE EQUIPMENT:                                                                                      
        SHOP EQ CONTACT MAINTENANCE TRK MTD (MYP)..      28       1,635      28       1,635  .......  ..........
        ITEMS LESS THAN $2.0 MILLION (MAINT  EQ)...  ......       1,167  ......       1,167  .......  ..........
    CONSTRUCTION EQUIPMENT:                                                                                     
        ROLLER, VIBRATORY, SELF-PROPELLED  (CCE)...      90       6,072      90       6,072  .......  ..........
        HYDRAULIC EXCAVATOR........................      11       2,825      11       2,825  .......  ..........
        DEPLOYABLE UNIVERSAL COMBAT EARTH MOVERS...      23       8,885      23       8,885  .......  ..........
        CRANE, WHEEL MTD, 25T, 3/4 CU YD, RT.......      22       6,055      22       6,055  .......  ..........
        ITEMS LESS THAN $2.0 MILLION (CONST EQUIP).  ......         845  ......         845  .......  ..........
    RAIL FLOAT CONTAINERIZATION EQUIPMENT:                                                                      
        PUSHER TUG, SMALL..........................       2       6,755       2       6,755  .......  ..........
        FLOATING CRANE, 100-250 TON................       1      14,073       1      14,073  .......  ..........
        RAILWAY CAR, FLAT, 100 TON.................     165      17,755     165      17,755  .......  ..........
        ITEMS LESS THAN $2.0 MILLION (FLOAT/RAIL)..  ......       9,165  ......       9,165  .......  ..........
    GENERATORS: GENERATORS AND ASSOCIATED EQUIP....  ......       7,706  ......       7,706  .......  ..........
    MATERIAL HANDLING EQUIPMENT:                                                                                
        ALL TERRAIN LIFTING ARTICULATING SYS-  TEM.      34       3,554      34       3,554  .......  ..........
        ITEMS LESS THAN $2.0 MILLION (MHE).........  ......       1,724  ......       1,724  .......  ..........
    TRAINING EQUIPMENT:                                                                                         
        COMBAT TRAINING CENTERS SUPPORT............  ......      26,724  ......      26,724  .......  ..........
        TRAINING DEVICES, NONSYSTEM................  ......      49,668  ......      59,668  .......     +10,000
        SIMNET/CLOSE COMBAT TACTICAL TRAINER.......  ......      92,968  ......      71,468  .......     -21,500
        FIRE SUPPORT COMBINED ARMS TACTICAL TRAINER  ......      19,860  ......      19,860  .......  ..........
    TEST MEASURE AND DIG EQUIPMENT (TMD):                                                                       
        CALIBRATION SETS EQUIPMENT.................  ......       6,572  ......       6,572  .......  ..........
        INTEGRATED FAMILY OF TEST EQUIPMENT (IFTE).  ......      14,828  ......      14,828  .......  ..........
        TMDE MODERNIZATION (TMOD)..................  ......       6,572  ......       6,572  .......  ..........
        RECONFIGURABLE SIMULATORS..................  ......      13,823  ......      13,823  .......  ..........
        PHYSICAL SECURITY SYSTEMS (OPA3)...........  ......       6,472  ......       6,472  .......  ..........
        SYSTEM FIELDING SUPPORT (OPA-3)............  ......       4,941  ......       4,941  .......  ..........
        BASE LEVEL COM'L EQUIPMENT.................  ......       4,283  ......      17,283  .......     +13,000
        SHED PROFILOMETER..........................  ......       2,988  ......       2,988  .......  ..........
        ELECTRONIC REPAIR SHELTER..................       3       5,678       3       5,678  .......  ..........
        MODIFICATION OF IN-SVC EQUIPMENT (OPA-3)...  ......      16,659  ......      16,659  .......  ..........
        PRODUCTION BASE SUPPORT (OTH)..............  ......       2,241  ......       2,241  .......  ..........
        DEPOT MAINTENANCE OF OTHER END  ITEMS......  ......      24,819  ......      24,819  .......  ..........
        SPECIAL EQUIPMENT FOR USER TESTING.........  ......      14,922  ......      14,922  .......  ..........
        TRACTOR VAPOR..............................  ......       4,243  ......       4,243  .......  ..........
                                                    ------------------------------------------------------------
          TOTAL, OTHER SUPPORT EQUIPMENT...........  ......     491,182  ......     499,682  .......      +8,500
SPARE AND REPAIR PARTS:                                                                                         
    INITIAL SPARES--TSV............................  ......         101  ......         101  .......  ..........
    INITIAL SPARES--C&E............................  ......      53,284  ......      53,284  .......  ..........
    INITIAL SPARES--OTHER SUPPORT EQUIP............  ......         852  ......         852  .......  ..........
                                                    ------------------------------------------------------------
      TOTAL, SPARE AND REPAIR PARTS................  ......      54,237  ......      54,237  .......  ..........
ECONOMIC ASSUMPTIONS...............................  ......  ..........  ......     -18,000  .......     -18,000
                                                    ============================================================
      TOTAL, OTHER PROCUREMENT, ARMY...............  ......   2,455,030  ......   2,783,735  .......    +328,705
----------------------------------------------------------------------------------------------------------------

                   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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Tactical trailers/dolly sets....................................           8,053          18,053         +10,000
Scamp (space)...................................................           4,305          16,605         +12,300
Information systems.............................................          20,498          51,498         +31,000
Combat support medical..........................................          11,808          18,808          +7,000
----------------------------------------------------------------------------------------------------------------

    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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Truck, tractor, linehaul, M-915/916.............................          36,079  ..............         -36,079
JTT/CIBS-M (TIARA)..............................................          11,438           6,438          -5,000
IEW-ground based common sensors.................................          26,817  ..............         -26,817
Maneuver control system [MCS]...................................          15,699  ..............         -15,699
----------------------------------------------------------------------------------------------------------------

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
High mobility multipurpose wheeled vehicle [HMMWV] [MYP]........          66,233         141,233         +75,000
Family of medium tactical vehicle [MYP].........................         209,446         253,446         +44,000
Family of heavy tactical vehicles [MYP].........................           9,071         137,071        +128,000
Army data distribution system [ADDS]............................          57,165          94,465         +37,300
ACUS mod program [WIN-T/T]......................................          82,391         115,391         +33,000
Sentinel........................................................          41,014          61,214         +20,200
Night vision devices............................................          85,312         121,312         +36,000
Reserve component automation system [RCAS]......................         114,323          84,323         -30,000
Simnet/close combat tactical trainer............................          92,968          71,468         -21,500
Calibration sets equipment......................................  ..............          25,000         +25,000
Training devices, nonsystem.....................................          49,668          59,668         +10,000
Base level com'l equipment......................................           4,283          17,283         +13,000
----------------------------------------------------------------------------------------------------------------

    Medical Equipment Tracking Program.--The Committee 
recommends an appropriation of $7,000,000 in the combat 
support, medical line to allow the U.S. Army Medical Command to 
implement the Medical Equipment Tracking [MedTrak] Program. 
This program is part of the Command's medical total asset 
visibility [MTAV] initiative and is designed to provide users 
timely and accurate information on the status, identity, and 
location of medical equipment, supplies, and patients. 
Specifically, MedTrak will use automatic identification 
technology [AIT] to permit realtime tracking and management of 
critical medical equipment and its operational status. This 
funding will allow the MedTrak's system installation in the 
Army's medical centers, hospitals, and medical activities. 
Additionally, the Committee encourages the Army to move forward 
with the other elements of its overall MTAV initiative.
    Calibration sets equipment.--The Committee has provided 
$25,000,000 for the procurement of direct support electronic 
system test sets [DSETS] for the M-2 Bradley TOW 2 test program 
set and the Bradley ODS Linebacker test program set.
    Direct support electronic system test sets [DSETS].--The 
Committee is concerned that the Department of Defense has not 
included a general purpose test equipment system in DOD's 
automatic test system family. The direct support electrical 
systems test sets [DSETS] is currently the preferred automatic 
test equipment [ATE] for the Army and Marine Corps wheeled and 
track vehicles. DSETS is a proven ATE system that offers the 
advantages of a comparable useful life compared to other ATE 
and offers lower operational and support costs. Therefore, the 
Committee directs that DSETS be included in the DOD automatic 
test equipment family.
    Army data distribution system.--The Committee recommends an 
increase of $37,300,000 to the budget request to procure 
additional enhanced position location reporting systems 
[EPLRS].
    Firefighter Trainer Program.--The Committee has provided an 
additional $10,000,000 for nonsystem training devices, 
including $4,000,000 for the firefighter trainer program.
    National Guard training simulators.--The Committee notes 
the success of the National Guard training simulator program. 
This program has produced affordable, deployable simulators 
that have had a beneficial effect on readiness. The Committee 
recommends that this program be continued at its full funding 
level. The Committee also notes that there are sufficient funds 
available in the total Army training account to accomplish this 
objective.
    ACUS Modernization Program [WIN-T/T].--The Committee 
provides an additional $33,000,000 for continuing the ACUS 
Modernization Program to include downsizing the high mobility 
DGM assemblages, the AN/TSN-210, the CSCE, the single shelter 
switch with ATM for EAC, continuing the NMT, ESOP hardware, the 
10-meter quick erect antenna mast, and the high capacity line 
of sight radio assemblage.

                       Aircraft Procurement, Navy

Appropriations, 1997.................................... $7,027,010,000 
Budget estimate, 1998...................................  5,951,965,000 
    (By transfer--national defense stockpile)...........   (134,000,000)
Committee recommendation................................  6,312,937,000 

    The Committee recommends $6,312,937,000, an increase of 
$360,972,000 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 Navy trainer aircraft, to remanufacture the Marine 
Corps' vertical/short takeoff and landing aircraft, 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..........................      11     277,648      12     283,890      +1       +6,242
    AV-8B (V/STOL)HARRIER (AP-CY)..................  ......      18,914  ......      17,900  ......       -1,014
    F/A-18E/F (FIGHTER) HORNET.....................      20   2,101,100      20   2,101,100  ......  ...........
    F/A-18E/F (FIGHTER) HORNET (AP-CY).............  ......      90,475  ......      90,475  ......  ...........
    V-22 (MEDIUM LIFT).............................       5     472,007       7     627,007      +2     +155,000
    V-22 (MEDIUM LIFT) (AP-CY).....................  ......      69,659  ......      62,124  ......       -7,535
    E-2C (EARLY WARNING) HAWKEYE...................       3     236,474       3     236,474  ......  ...........
    E-2C (EARLY WARNING) HAWKEYE (AP-CY)...........  ......      19,481  ......      19,481  ......  ...........
                                                    ------------------------------------------------------------
      TOTAL, COMBAT AIRCRAFT.......................  ......   3,285,758  ......   3,438,451  ......     +152,693
AIRLIFT AIRCRAFT: CH-60 HELICOPTER (AP-CY).........  ......      31,837  ......  ..........  ......      -31,837
TRAINER AIRCRAFT:                                                                                               
    T-45TS (TRAINER) GOSHAWK.......................      12     243,960      18     291,899      +6      +47,939
    T-45TS (TRAINER) GOSHAWK (AP-CY)...............  ......       6,235  ......       6,235  ......  ...........
                                                    ------------------------------------------------------------
      TOTAL, TRAINER AIRCRAFT......................  ......     250,195  ......     298,134  ......      +47,939
OTHER AIRCRAFT:                                                                                                 
    MODIFICATION OF AIRCRAFT:                                                                                   
        EA-6 SERIES................................  ......      86,783  ......     126,783  ......      +40,000
        AV-8 SERIES................................  ......      32,647  ......      32,647  ......  ...........
        F-14 SERIES................................  ......     290,500  ......     275,200  ......      -15,300
        ADVERSARY..................................  ......         115  ......         115  ......  ...........
        ES-3 SERIES................................  ......       5,233  ......       5,233  ......  ...........
        F-18 SERIES................................  ......     156,213  ......     140,713  ......      -15,500
        H-46 SERIES................................  ......      33,480  ......      33,480  ......  ...........
        AH-1W SERIES...............................  ......      34,518  ......      34,518  ......  ...........
        H-53 SERIES................................  ......      35,704  ......      45,704  ......      +10,000
        SH-60 SERIES...............................  ......      74,300  ......      74,300  ......  ...........
        H-1 SERIES.................................  ......      18,489  ......      18,489  ......  ...........
        H-3 SERIES.................................  ......       1,417  ......       1,417  ......  ...........
        EP-3 SERIES................................  ......       4,386  ......       4,386  ......  ...........
        P-3 SERIES.................................  ......     164,907  ......     226,307  ......      +61,400
        S-3 SERIES.................................  ......      44,606  ......      44,606  ......  ...........
        E-2 SERIES.................................  ......      49,073  ......      85,210  ......      +36,137
        TRAINER A/C SERIES.........................  ......       7,919  ......       7,919  ......  ...........
        C-2A.......................................  ......      19,159  ......      19,159  ......  ...........
        C-130 SERIES...............................  ......      12,645  ......      12,645  ......  ...........
        FEWSG......................................  ......         537  ......         537  ......  ...........
        CARGO/TRANSPORT A/C SERIES.................  ......      29,911  ......      20,911  ......       -9,000
        E-6 SERIES.................................  ......      96,344  ......      96,344  ......  ...........
        EXECUTIVE HELICOPTERS SERIES...............  ......      22,763  ......      22,763  ......  ...........
        SPECIAL PROJECT AIRCRAFT...................  ......      16,527  ......      23,527  ......       +7,000
        T-45 SERIES................................  ......       5,442  ......       5,442  ......  ...........
        POWER PLANT CHANGES........................  ......      13,972  ......      15,572  ......       +1,600
        COMMON ECM EQUIPMENT.......................  ......      32,855  ......      32,855  ......  ...........
        COMMON AVIONICS CHANGES....................  ......     131,599  ......     117,439  ......      -14,160
                                                    ------------------------------------------------------------
          TOTAL, MODIFICATION OF AIRCRAFT..........  ......   1,422,044  ......   1,524,221  ......     +102,177
AIRCRAFT SPARES AND REPAIR PARTS: SPARES AND REPAIR                                                             
 PARTS.............................................  ......     740,214  ......     740,214  ......  ...........
AIRCRAFT SUPPORT EQUIPMENT AND FACILITIES:                                                                      
    COMMON GROUND EQUIPMENT........................  ......     287,114  ......     287,114  ......  ...........
    AIRCRAFT INDUSTRIAL FACILITIES.................  ......      17,585  ......      17,585  ......  ...........
    WAR CONSUMABLES................................  ......      16,014  ......      16,014  ......  ...........
    OTHER PRODUCTION CHARGES.......................  ......      10,185  ......      10,185  ......  ...........
    SPECIAL SUPPORT EQUIPMENT......................  ......      23,302  ......      23,302  ......  ...........
    FIRST DESTINATION TRANSPORTATION...............  ......       1,717  ......       1,717  ......  ...........
                                                    ------------------------------------------------------------
      TOTAL, AIRCRAFT SUPPORT EQUIPMENT AND                                                                     
       FACILITIE...................................  ......     355,917  ......     355,917  ......  ...........
TRANSFER FROM NATIONAL DEFENSE STOCKPILE...........  ......    -134,000  ......  ..........  ......     +134,000
ECONOMIC ASSUMPTIONS...............................  ......  ..........  ......     -44,000  ......      -44,000
                                                    ============================================================
      TOTAL, AIRCRAFT PROCUREMENT, NAVY............  ......   5,951,965  ......   6,312,937  ......     +360,972
          TRANSFER.................................  ......   (134,000)  ......  ..........  ......   (-134,000)
                                                    ------------------------------------------------------------
      TOTAL FUNDING AVAILABLE......................  ......   6,085,965  ......   6,312,937  ......     +226,972
----------------------------------------------------------------------------------------------------------------

                   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]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
F-14 series modifications.......................................         290,500         275,200         -15,300
    Critical systems modernization delay........................  ..............          -3,300          -3,300
    Precision strike late obligation............................  ..............         -12,000         -12,000
F-18 series modifications.......................................         156,213         140,713         -15,500
    Late obligations............................................  ..............         -15,500         -15,500
Cargo and transport aircraft modifications......................          29,911          20,911          -9,000
    C-9B/DC-9 upgrade standardization program  delay............  ..............          -9,000          -9,000
Common avionics changes.........................................         131,599         117,439         -14,160
    Low probability of intercept altimeter program delay........  ..............          -2,000          -2,000
    Systems engineering growth..................................  ..............          -1,200          -1,200
    Late obligation.............................................  ..............         -10,960         -10,960
----------------------------------------------------------------------------------------------------------------

    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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
AV-8B (V/STOL) Harrier advance procurement......................          18,914          17,900          -1,014
    Engine advance procurement..................................  ..............          -1,014          -1,014
V-22 (medium lift) advance procurement..........................          69,659          62,124          -7,535
    Engine advance procurement..................................  ..............          -7,535          -7,535
CH-60 helicopter advance procurement............................          31,837  ..............         -31,837
----------------------------------------------------------------------------------------------------------------

    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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
V-22 (medium lift)..............................................         472,007         627,007        +155,000
    Two additional V-22 aircraft................................  ..............        +180,000        +180,000
    Engineering change orders \1\...............................  ..............         -25,000         -25,000
EA-6 series modifications.......................................          86,783         126,783         +40,000
    Five center wing sections...................................  ..............         +25,000         +25,000
    Late obligations \1\........................................  ..............         -10,000         -10,000
    Support jamming upgrade \2\.................................  ..............         +25,000         +25,000
P-3 series modifications........................................         164,907         226,307         +61,400
    Two additional ASUW improvement program kits \2\............  ..............         +17,300         +17,300
    Seventeen additional sustained readiness program kits.......  ..............         +25,100         +25,100
    Lightweight environmentally sealed parachute assembly.......  ..............         +11,000         +11,000
    Replacement data storage system.............................  ..............          +8,000          +8,000
E-2 series modifications........................................          49,073          85,210         +36,137
    CEC modifications for E-2C's................................  ..............         +36,137         +36,137
Powerplant changes..............................................          13,972          15,572          +1,600
    Oil debris detection system.................................  ..............          +1,600          +1,600
----------------------------------------------------------------------------------------------------------------
\1\ Program adjustment recommended as described under the heading ``Excess funds.''                             
\2\ Program adjustment recommended as described under the heading ``Authorization adjustments.''                

    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 1998:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
AV-8B (V/STOL) Harrier..........................................         277,648         283,890          +6,242
    One additional AV-8B remanufacture..........................  ..............         +24,600         +24,600
    Multiyear procurement savings...............................  ..............         -12,510         -12,510
    Engineering change proposals \1\............................  ..............          -5,848          -5,848
T-45TS (trainer) Goshawk........................................         243,960         291,899         +47,939
    Six additional aircraft.....................................  ..............         +96,600         +96,600
    Multiyear procurement savings...............................  ..............         -51,084         -51,084
    Peculiar training equipment \2\.............................  ..............         +10,000         +10,000
    Engineering change orders \1\...............................  ..............          -3,728          -3,728
    Engine contract award savings \1\...........................  ..............          -3,849          -3,849
H-53 series modifications.......................................          35,704          45,704         +10,000
    Crash attenuating seats.....................................  ..............         +10,000         +10,000
----------------------------------------------------------------------------------------------------------------
\1\ Program reduction recommended as described under the heading ``Program reductions and deferrals.''          
\2\ Increase reflects Committee recommendations as outlined in the ``Program and project increases'' heading of 
  this report section.                                                                                          

    T-45TS (trainer) Goshawk.--The Committee recommends a 
number of adjustments in the T-45 aircraft procurement budget 
request, as outlined in the preceding table. Specifically, the 
Committee has added funds to procure 18 aircraft, an increase 
of 6 trainers over the budget request. The Committee has also 
included statutory language providing multiyear procurement 
authority for the T-45 program. The Committee recommendation 
assumes cost savings based on the implementation of a multiyear 
procurement strategy.
    Finally, the Committee provides an increase of $10,000,000 
for T-45 training equipment. The Committee directs that these 
additional funds shall be used only to accelerate the 
introduction of aircraft and training equipment to Naval Air 
Station Meridian.
    CH-60 helicopter advance procurement.--The Committee is 
aware of an advanced concept technology demonstration [ACTD] 
which evaluated commercial options for performing the vertical 
replenishment mission. While highlighted as a successful ACTD, 
the Navy's future plans to take advantage of commercial 
vertical replenishment services are not clear. Furthermore, the 
Committee understands that there has been a limited look at 
whether the V-22, which will soon be in the fleet, can perform 
remaining portions of the vertical replenishment mission.
    With these factors in mind, the Committee has recommended 
deferral of $31,837,000 requested for CH-60 advance 
procurement. The Committee believes that the Navy should 
develop a strategic plan for cost effectively meeting vertical 
replenishment requirements prior to proceeding with this 
$2,600,000,000 helicopter procurement program.
    E-2C modifications.--The Committee has provided 
$85,210,000, an increase of $36,137,000 to the budget request, 
for modifications of E-2C aircraft. The Committee directs that 
the additional funds shall only be available to support 
modification of E-2C's currently in the Navy aircraft inventory 
to make them compatible with cooperative engagement capability 
[CEC] equipment. The Committee understands that these 
modifications will permit accelerated introduction of airborne 
CEC capability to the fleet.
    Common ground equipment.--The Committee directs that 
$3,000,000 of the funds provided in this line shall be 
available only to procure direct support squadron readiness 
training computer-based training capability.
    Reef Point.--Based on CINC requirements and QDR mission 
scenario forecasts, a minimum of four Reef Point aircraft are 
required to meet current and projected needs. The Committee 
understands two Reef Point aircraft will reach the end of their 
service life in fiscal year 2001. In order to begin 
modification of two low-flight-hour airframes to accept 
existing Reef Point sensors, the Committee is providing 
$7,000,000 in fiscal year 1998. The Committee has been advised 
that a total of $26,600,000 is required to complete the 
modifications and the Department is directed to include funding 
in fiscal year 1999 and the out-years to complete this effort.

                       Weapons Procurement, Navy

Appropriations, 1997....................................  $1,389,913,000
Budget estimate, 1998...................................   1,136,293,000
Committee recommendation................................   1,138,393,000

    The Committee recommends an appropriation of $1,138,393,000 
for the Navy's fiscal year 1998 ``Weapons procurement'' 
account, an increase of $2,100,000 from the President's 
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......................................       7     292,248       5     227,248      -2     -65,000
    TRIDENT II (AP-CY)..............................  ......      47,021  ......      47,021  ......  ..........
    SUPPORT EQUIPMENT AND FACILITIES: MISSILE                                                                   
     INDUSTRIAL FACILITIES..........................  ......       2,143  ......       2,143  ......  ..........
                                                     -----------------------------------------------------------
        TOTAL, BALLISTIC MISSILES...................  ......     341,412  ......     276,412  ......     -65,000
OTHER MISSILES:                                                                                                 
    STRATEGIC MISSILES:                                                                                         
        TOMAHAWK....................................      65      51,820     110      71,820     +45     +20,000
        ESSM........................................  ......      15,529  ......      15,529  ......  ..........
    TACTICAL MISSILES:                                                                                          
        AMRAAM......................................     100      57,066     100      57,066  ......  ..........
        JSOW........................................     113      58,665     113      58,665  ......  ..........
        STANDARD MISSILE............................     127     196,492     127     196,492  ......  ..........
        RAM.........................................     100      44,082     100      44,082  ......  ..........
        PENGUIN.....................................  ......  ..........  ......      15,000  ......     +15,000
        AERIAL TARGETS..............................  ......      72,923  ......      66,723  ......      -6,200
        DRONES AND DECOYS...........................  ......         298  ......         298  ......  ..........
        OTHER MISSILE SUPPORT.......................  ......      18,294  ......      18,294  ......  ..........
    MODIFICATION OF MISSILES:                                                                                   
        SIDEWINDER MODS.............................  ......         333  ......         333  ......  ..........
        HARPOON MODS................................  ......      21,694  ......      21,694  ......  ..........
        STANDARD MISSILES MODS......................  ......      35,601  ......      50,901  ......     +15,300
    SUPPORT EQUIPMENT AND FACILITIES: WEAPONS                                                                   
     INDUSTRIAL FACILITIES..........................  ......      34,932  ......      34,932  ......  ..........
    ORDNANCE SUPPORT EQUIPMENT......................  ......       5,264  ......       5,264  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, OTHER MISSILES.........................  ......     612,993  ......     657,093  ......     +44,100
TORPEDOES AND RELATED EQUIPMENT:                                                                                
    ASW TARGETS.....................................  ......         685  ......         685  ......  ..........
    MOD OF TORPEDOES AND RELATED EQUIP:                                                                         
        MK-46 TORPEDO MODS..........................  ......         274  ......         274  ......  ..........
        MK-48 TORPEDO ADCAP MODS....................  ......      55,392  ......      55,392  ......  ..........
    SUPPORT EQUIPMENT:                                                                                          
        TORPEDO SUPPORT EQUIPMENT...................  ......      25,509  ......      25,509  ......  ..........
        ASW RANGE SUPPORT...........................  ......      11,847  ......      11,847  ......  ..........
    DESTINATION TRANSPORTATION: FIRST DESTINATION                                                               
     TRANSPORTATION.................................  ......       2,008  ......       2,008  ......  ..........
                                                     -----------------------------------------------------------
        TOTAL, TORPEDOES AND RELATED EQUIP-  MENT...  ......      95,715  ......      95,715  ......  ..........
OTHER WEAPONS:                                                                                                  
    GUNS AND GUN MOUNTS: SMALL ARMS AND WEAPONS.....  ......         994  ......         994  ......  ..........
    MODIFICATION OF GUNS AND GUN MOUNTS:                                                                        
        CIWS MODS...................................  ......        ,990  ......      24,990  ......     +15,000
        5/54 GUN MOUNT MODS.........................  ......         241  ......      13,241  ......     +13,000
        MODS UNDER $2 MILLION.......................  ......       1,320  ......       1,320  ......  ..........
    SUPPORT EQUIPMENT: PIONEER......................  ......       3,962  ......       6,962  ......      +3,000
    OTHER: PIONEER..................................  ......      42,723  ......      42,723  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, OTHER WEAPONS..........................  ......      59,230  ......      90,230  ......     +31,000
SPARES AND REPAIR PARTS.............................  ......      26,943  ......      26,943  ......  ..........
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......      -8,000  ......      -8,000
                                                     ===========================================================
      TOTAL, WEAPONS PROCUREMENT, NAVY..............  ......   1,136,293  ......   1,138,393  ......      +2,100
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

    Trident II missile.--The President's budget request 
includes $339,269,000 in procurement and advance procurement 
for the production of seven Trident II missiles in fiscal year 
1998. The Committee recommends providing a total of 
$274,269,000 for the production of five Trident missiles, a 
reduction of $65,000,000 from the budget request.
    Through fiscal year 1997, Congress has provided full 
funding for all Trident II missiles required to support the 10 
new construction Trident submarines. The funding request in 
fiscal year 1998 begins the production of 84 missiles for the 
four submarines proposed for backfit, beginning in May 2000. 
With the possibility that all four of the proposed backfit 
boats would be decommissioned under a START III agreement, the 
Committee believes it prudent to slow the production rate of 
the Trident II missiles specifically earmarked for the backfit 
submarines.
    The Committee recognizes that the five missiles in this 
bill will be excess to Navy requirements if the United States 
does not proceed with the Trident backfit program. Therefore, 
the Committee directs that the missiles procured in this bill 
be earmarked to be resold to the United Kingdom should the 
backfit program be canceled prior to the time the Royal Navy 
completes its acquisition of D-5 missiles.
    MK-15 close in weapons system [CIWS] (mods).--The Navy's 
budget request includes $9,990,000 for the procurement of 
ordnance upgrades (Ordalt) kits, installation, and engineering 
services of the block I upgrade for the Phalanx close in 
weapons system. The Committee recommends providing $24,990,000, 
an increase of $15,000,000 for this activity in fiscal year 
1998.
    The Committee notes the block I upgrade provides a 14-fold 
increase in search elevation angle, a 50-percent increase in 
onmount ammunition capacity and rate of fire, and significant 
reliability and maintainability improvements over the basic 
Phalanx system. The Committee believes the acceleration of this 
critical improvement in ship self-defense is essential to meet 
current and projected antiship missile threats for which there 
is no current means of self-defense.
    5/54 gun mount mods.--The Navy's budget request includes 
$241,000 for the procurement of gun safety, shock hardening, 
and fire support Ordalts kits for the 5 inch/54 MK-42 and MK-45 
gun mounts. The Committee recommends providing $13,241,000, an 
increase of $13,000,000 over the budget request.
    The Committee understand that rate of 10 overhauls annually 
is the minimum requirement for economic procurement of this 
vital system enhancement. The Committee, therefore, has 
provided sufficient funding for this level and expects the Navy 
to budget for this rate in fiscal year 1999.
    Pioneer.--The Committee agrees with the recommendation of 
the Senate defense authorization committee and has provided a 
total of $5,000,000 for the common automatic recovery system 
[CARS]. The CARS Program was authorized within defense-wide 
accounts; however, departmental officials have advised the 
Committee that this program is more appropriately funded within 
the Navy's accounts. Therefore, the Committee has provided 
$3,000,000 in the ``Weapons procurement, Navy'' account and 
$2,000,000 in the ``Research, development, test and evaluation, 
Navy'' account for the CARS Program.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Tomahawk missile................................................          51,820          71,820         +20,000
Penguin missile.................................................  ..............          15,000         +15,000
Aerial targets..................................................          72,923          66,723          -6,200
Standard missile modifications..................................          35,601          50,901         +15,300
----------------------------------------------------------------------------------------------------------------

            Procurement of Ammunition, Navy and Marine Corps

Appropriations, 1997....................................    $289,695,000
Budget estimate, 1998...................................     336,797,000
Committee recommendation................................     344,797,000

    The Committee recommends an appropriation of $344,797,000 
for Navy and Marine Corps ammunition for fiscal year 1998. This 
is $8,000,000 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 CORP                                                               
                                                                                                                
PROC AMMO, NAVY:                                                                                                
    NAVY AMMUNITION:                                                                                            
        AIR LAUNCHED ORDNANCE:                                                                                  
            GENERAL PURPOSE BOMBS...................  ......      12,849  ......      12,849  ......  ..........
            JDAM....................................     668      38,520     668      38,520  ......  ..........
            2.75 INCH ROCKETS.......................  ......      15,833  ......      15,833  ......  ..........
            MACHINE GUN AMMUNITION..................  ......       7,823  ......       7,823  ......  ..........
            PRACTICE BOMBS..........................  ......      41,766  ......      41,766  ......  ..........
            CARTRIDGES & CART ACTUATED DEVICES......  ......      24,373  ......      24,373  ......  ..........
            AIRCRAFT ESCAPE ROCKETS.................  ......       8,544  ......       8,544  ......  ..........
            AIR EXPENDABLE COUNTERMEASURES..........  ......      22,724  ......      22,724  ......  ..........
            MARINE LOCATION MARKERS.................  ......         655  ......         655  ......  ..........
            JATOS...................................  ......       4,517  ......       4,517  ......  ..........
        SHIP ORDNANCE:                                                                                          
            5 INCH/54 GUN AMMUNITION................  ......      27,669  ......      27,669  ......  ..........
            CIWS AMMUNITION.........................  ......         467  ......         467  ......  ..........
            76MM GUN AMMUNITION.....................  ......       3,446  ......       3,446  ......  ..........
            OTHER SHIP GUN AMMUNITION...............  ......       4,499  ......       4,499  ......  ..........
        OTHER ORDNANCE:                                                                                         
            SMALL ARMS & LANDING PARTY  AMMO........  ......       7,756  ......       7,756  ......  ..........
            PYROTECHNIC AND DEMOLITION..............  ......      10,216  ......      10,216  ......  ..........
            MINE NEUTRALIZATION DEVICES.............  ......       6,321  ......       6,321  ......  ..........
                                                     -----------------------------------------------------------
              TOTAL, PROC AMMO, NAVY................  ......     237,978  ......     237,978  ......  ..........
PROC AMMO, MC:                                                                                                  
    MARINE CORPS AMMUNITION:                                                                                    
        5.56 MM, ALL TYPES..........................  ......      33,000  ......      33,000  ......  ..........
        7.62 MM, ALL TYPES..........................  ......       2,900  ......       2,900  ......  ..........
        LINEAR CHARGES, ALL TYPES...................  ......       2,290  ......       2,290  ......  ..........
        .50 CALIBER.................................  ......       1,700  ......       1,700  ......  ..........
        40 MM, ALL TYPES............................  ......       5,701  ......       5,701  ......  ..........
        120MM, ALL TYPES............................  ......      15,481  ......      15,481  ......  ..........
        CTG 25MM, ALL TYPES.........................  ......       2,181  ......       2,181  ......  ..........
        9 MM ALL TYPES..............................  ......       3,684  ......       3,684  ......  ..........
        GRENADES, ALL TYPES.........................  ......       2,882  ......       2,882  ......  ..........
        ROCKETS, ALL TYPES..........................  ......      15,047  ......      25,047  ......     +10,000
        DEMOLITION MUNITIONS, ALL TYPES.............  ......         600  ......         600  ......  ..........
        NON LETHALS.................................  ......       2,000  ......       2,000  ......  ..........
        AMMO MODERNIZATION..........................  ......       9,888  ......       9,888  ......  ..........
        ITEMS LESS THAN $2.0 MILLION................  ......       1,465  ......       1,465  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, PROC AMMO, MC......................  ......      98,819  ......     108,819  ......     +10,000
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......      -2,000  ......      -2,000
                                                     ===========================================================
      TOTAL, PROCUREMENT OF AMMUNITION, NAVY &                                                                  
       MARINE CORP..................................  ......     336,797  ......     344,797  ......      +8,000
----------------------------------------------------------------------------------------------------------------

                              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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Shoulder launched multipurpose assault weapon  [SMAW]...........          15,047          25,047         +10,000
----------------------------------------------------------------------------------------------------------------

                   Shipbuilding and Conversion, Navy

Appropriations, 1997....................................  $5,613,665,000
Budget estimate, 1998...................................   7,438,158,000
Committee recommendation................................   8,510,458,000

    The Committee recommends $8,510,458,000, an increase of 
$1,072,300,000 over the budget. 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:                                                                                                 
    SSN-21........................................  ......     153,444  ......     153,444  ......  ............
    NEW SSN.......................................       1   2,314,903       1   2,314,903  ......  ............
    NEW SSN (AP-CY)...............................  ......     284,859  ......     284,859  ......  ............
    CVN-77 (AP)...................................  ......  ..........  ......     345,000  ......      +345,000
    CVN REFUELING OVERHAULS.......................       1   1,615,003       1   1,615,003  ......  ............
    CVN REFUELING OVERHAULS (AP-CY)...............  ......      92,855  ......      92,855  ......  ............
    DDG-51........................................       3   2,665,767       4   3,385,767      +1      +720,000
    DDG-51 (AP-CY)................................  ......     157,806  ......     157,806  ......  ............
                                                   -------------------------------------------------------------
      TOTAL, OTHER WARSHIPS.......................  ......   7,284,637  ......   8,349,637  ......    +1,065,000
AMPHIBIOUS SHIPS:                                                                                               
    AUXILIARIES, CRAFT, AND PRIOR-YEAR PROGRAM:                                                                 
        AUXILIARIES, CRAFT AND PRIOR YEAR PROGRAM                                                               
         COS:                                                                                                   
            OCEANOGRAPHIC SHIPS...................  ......  ..........       1      73,000      +1       +73,000
            SERVICE CRAFT.........................  ......      33,859  ......      33,859  ......  ............
            LCAC LANDING CRAFT....................  ......  ..........  ......      17,300  ......       +17,300
            OUTFITTING............................  ......      28,140  ......      24,140  ......        -4,000
            POST DELIVERY.........................  ......      90,177  ......      83,177  ......        -7,000
            FIRST DESTINATION TRANSPORTA-  TION...  ......       1,345  ......       1,345  ......  ............
                                                   -------------------------------------------------------------
                TOTAL, AUXILIARIES, CRAFT, AND                                                                  
                 PRIOR-YEAR PROGRAM...............  ......     153,521  ......     232,821  ......       +79,300
ECONOMIC ASSUMPTIONS..............................  ......  ..........  ......     -72,000  ......       -72,000
                                                   =============================================================
      TOTAL, SHIPBUILDING & CONVERSION, NAVY......  ......   7,438,158  ......   8,510,458  ......    +1,072,300
----------------------------------------------------------------------------------------------------------------

    DDG's.--The Navy's budget request includes a total of 
$2,823,573,000 for the procurement of three DDG-51's in fiscal 
year 1998 and advance procurement of future ships. The 
Committee recommends providing a total of $3,543,573,000, and 
increase of $720,000,000, for the procurement of four DDG-51's 
in fiscal year 1998 and advanced procurement of future DDG-
51's.
    The Chief of Naval Operations [CNO] sent a letter to the 
Committee stating that prior to the Congress providing 
multiyear approval for the DDG-51 program, each ship would have 
cost approximately $950,000,000. Now under the multiyear, the 
CNO writes, an additional DDG-51 in fiscal year 1998 would cost 
$720,000,000, a savings of $230,000,000 or 24 percent over the 
annual price. The Committee provides sufficient funds in its 
recommendations to buy this additional ship.
    Oceanographic ship (TAG-65).--The Committee agrees with the 
Senate Armed Services Committee statements regarding the 
inability of the current Navy fleet to meet oceanographic 
survey requirements. Therefore, the Committee has provided an 
increase of $73,000,000 for the construction of an 
oceanographic ship.
    LCAC SLEP.--The Committee recommends $17,300,000 for the 
continuation of service life extension program of the LCAC.
    The Committee notes that Congress provided $3,000,000 in 
fiscal year 1997 for advance procurement to allow the Navy to 
begin low rate initial production [LRIP] in fiscal year 1998. 
However, because of budget constraints, the Navy now plans to 
begin LRIP in fiscal year 2000. The Committee still believes 
that the 20- to 30-year extended craft life, the reduction of 
annual operating costs by 20 percent, the performance 
enhancements, and the increased operation range justify the 
acceleration of this program.
    Outfitting.--The budget request includes $28,140,000 for 
the Navy's ship outfitting program which acquires onboard 
repair parts, precommissioning crew support, and general use 
consumables and other items as defined by the baseline 
coordinate shipboard allowance list [COSAL]. The Committee 
recommends providing $24,140,000 for these activities in fiscal 
year 1998, a reduction of $4,000,000 from the budget request.
    Because of slippages in the delivery of ships, the prior-
year obligation rates and the expected rate for fiscal year 
1998 are below normal levels. The proposed adjustment by the 
Committee will properly align the funding requirements for 
outfitting items with the current and expected delivery dates 
of Navy ships.
    Post delivery.--The budget request includes $90,177,000 for 
post delivery activities for fiscal year 1998. The Committee 
recommends providing $83,177,000, a reduction of $7,000,000 
from the request.
    As is the case with outfitting, the delivery and shakedown 
schedules of Navy ships have slipped since the budget was 
formulated and thus reduced the funding requirement for post 
delivery activities in fiscal year 1998. The proposed reduction 
will properly align the funding requirements for post delivery 
activities with the current and expected delivery dates of Navy 
ships.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
CVN-77 (AP).....................................................  ..............         345,000        +345,000
----------------------------------------------------------------------------------------------------------------

                        Other Procurement, Navy

Appropriations, 1997....................................  $3,067,944,000
Budget estimate, 1998...................................   2,825,500,000
Committee recommendation................................   2,865,800,000

    The Committee recommends an appropriation of $2,865,800,000 
for the Navy's fiscal year 1998 ``Other procurement'' account, 
an increase of $40,300,000 above the President's budget.
    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.........................  ......       7,548  ......       7,548  ......  ..........
        ALLISON 505K GAS TURBINE....................  ......       5,897  ......       5,897  ......  ..........
        STEAM PROPULSION IMPROVEMENT................  ......         541  ......         541  ......  ..........
        OTHER PROPULSION EQUIPMENT..................  ......      12,077  ......      12,077  ......  ..........
    GENERATORS: OTHER GENERATORS....................  ......       1,810  ......       1,810  ......  ..........
    PUMPS: OTHER PUMPS..............................  ......         444  ......         444  ......  ..........
    PROPELLERS: OTHER PROPELLERS AND SHAFTS.........  ......       1,496  ......       1,496  ......  ..........
    NAVIGATION EQUIPMENT: OTHER NAVIGATION EQUIPMENT  ......      31,552  ......      49,552  ......     +18,000
    UNDERWAY REPLENISHMENT EQUIPMENT: UNDERWAY                                                                  
     REPLENISHMENT EQUIPMENT........................  ......       8,189  ......       8,189  ......  ..........
    PERISCOPES: SUB PERISCOPES & IMAGING EQUIP......  ......      32,131  ......      32,131  ......  ..........
    OTHER SHIPBOARD EQUIPMENT:                                                                                  
        FIREFIGHTING EQUIPMENT......................  ......      14,081  ......      14,081  ......  ..........
        COMMAND AND CONTROL SWITCHBOARD.............  ......       8,049  ......       8,049  ......  ..........
        POLLUTION CONTROL EQUIPMENT.................  ......     156,775  ......     135,775  ......     -21,000
        SUBMARINE SILENCING EQUIPMENT...............  ......       4,285  ......       4,285  ......  ..........
        SUBMARINE BATTERIES.........................  ......       9,043  ......       9,043  ......  ..........
        SSN21 CLASS SUPPORT EQUIPMENT...............  ......       6,442  ......       6,442  ......  ..........
        STRATEGIC PLATFORM SUPPORT EQUIP............  ......       6,435  ......       6,435  ......  ..........
        DSSP EQUIPMENT..............................  ......       7,269  ......       7,269  ......  ..........
        MINESWEEPING EQUIPMENT......................  ......       4,940  ......       4,940  ......  ..........
        HM&E ITEMS UNDER $2 MILLION.................  ......      51,059  ......      51,059  ......  ..........
        SURFACE IMA.................................  ......       2,026  ......       2,026  ......  ..........
        RADIOLOGICAL CONTROLS.......................  ......         163  ......         163  ......  ..........
        MINI/MICROMINI ELECTRONIC REPAIR............  ......         495  ......         495  ......  ..........
    REACTOR PLANT EQUIPMENT:                                                                                    
        REACTOR POWER UNITS.........................  ......     108,542  ......     108,542  ......  ..........
        REACTOR COMPONENTS..........................  ......     193,880  ......     193,880  ......  ..........
    OCEAN ENGINEERING:                                                                                          
        DIVING AND SALVAGE EQUIPMENT................  ......       4,860  ......       4,860  ......  ..........
        EOD UNDERWATER EQUIPMENT....................  ......       9,050  ......       9,050  ......  ..........
    SMALL BOATS: STANDARD BOATS.....................  ......       4,932  ......       4,932  ......  ..........
    TRAINING EQUIPMENT: OTHER SHIPS TRAINING                                                                    
     EQUIPMENT......................................  ......       1,815  ......       1,815  ......  ..........
    PRODUCTION FACILITIES EQUIPMENT:                                                                            
        PRODUCTION SUPPORT FACILITIES...............  ......         353  ......         353  ......  ..........
        OPERATING FORCES IPE........................  ......         888  ......         888  ......  ..........
    OTHER SHIP SUPPORT: NUCLEAR ALTERATIONS.........  ......      74,053  ......      74,053  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, SHIPS SUPPORT EQUIPMENT................  ......     771,120  ......     768,120  ......      -3,000
COMMUNICATIONS AND ELECTRONICS EQUIPMENT:                                                                       
    SHIP RADARS:                                                                                                
        AN/SPS-40...................................  ......         669  ......         669  ......  ..........
        AN/SPS-48...................................  ......         230  ......         230  ......  ..........
        AN/SPS-49...................................  ......      13,401  ......      13,401  ......  ..........
        MK-23 TARGET ACQUISITION SYSTEM.............  ......       1,923  ......       1,923  ......  ..........
        RADAR SUPPORT...............................  ......       1,708  ......      10,708  ......      +9,000
        TISS........................................  ......      13,703  ......      13,703  ......  ..........
    SHIP SONARS:                                                                                                
        SURFACE SONAR SUPPORT EQUIPMENT.............  ......       3,810  ......       3,810  ......  ..........
        AN/SQQ-89 SURF ASW COMBAT SYSTEM............  ......      16,628  ......      16,628  ......  ..........
        SSN ACOUSTICS...............................  ......      77,953  ......      85,953  ......      +8,000
        SONAR SUPPORT EQUIPMENT.....................  ......       5,430  ......       5,430  ......  ..........
        SONAR SWITCHES AND TRANSDUCERS..............  ......      11,574  ......      11,574  ......  ..........
    ASW ELECTRONIC EQUIPMENT:                                                                                   
        SUBMARINE ACOUSTIC WARFARE SYSTEM...........  ......       4,259  ......       4,259  ......  ..........
        SSTD........................................  ......         344  ......         344  ......  ..........
        ACOUSTIC COMMUNICATIONS.....................  ......         412  ......         412  ......  ..........
        FIXED SURVEILLANCE SYSTEM...................  ......      15,175  ......      15,175  ......  ..........
        SURTASS.....................................  ......       7,108  ......       7,108  ......  ..........
        ASW OPERATIONS CENTER.......................  ......       5,255  ......       5,255  ......  ..........
        CARRIER ASW MODULE..........................  ......          16  ......      12,016  ......     +12,000
    ELECTRONIC WARFARE EQUIPMENT:                                                                               
        AN/SLQ-32...................................  ......       2,119  ......       2,119  ......  ..........
        INFORMATION WARFARE SYSTEMS.................  ......       3,781  ......       3,781  ......  ..........
        EW SUPPORT EQUIPMENT........................  ......       4,216  ......       4,216  ......  ..........
        C-3 COUNTERMEASURES.........................  ......       6,891  ......       6,891  ......  ..........
    RECONNAISSANCE EQUIPMENT:                                                                                   
        COMBAT DF...................................  ......      10,473  ......      10,473  ......  ..........
        OUTBOARD....................................  ......      11,674  ......      11,674  ......  ..........
        BATTLE GROUP PASSIVE HORIZON EXTEN..........  ......      50,221  ......      50,221  ......  ..........
    SUBMARINE SURVEILLANCE EQUIPMENT:                                                                           
        AN/WLQ-4....................................  ......       4,479  ......       4,479  ......  ..........
        SUBMARINE SUPPORT EQUIPMENT PROG............  ......       6,904  ......       6,904  ......  ..........
    OTHER SHIP ELECTRONIC EQUIPMENT:                                                                            
        NAVY TACTICAL DATA SYSTEM...................  ......      14,335  ......      26,335  ......     +12,000
        JMCIS AFLOAT................................  ......      22,403  ......      34,403  ......     +12,000
        NAVAL TACTICAL COMMAND SUPPORT SYSTEM                                                                   
         (NTCSS)....................................  ......      49,710  ......      92,110  ......     +43,200
        ATDLS.......................................  ......      16,991  ......      16,991  ......  ..........
        MINESWEEPING SYSTEM REPLACEMENT.............  ......      15,848  ......      15,848  ......  ..........
        SHALLOW WATER MCM...........................  ......  ..........  ......      10,000  ......     +10,000
        NAVSTAR GPS RECEIVERS (SPACE)...............  ......       5,006  ......       5,006  ......  ..........
        ARMED FORCES RADIO AND TV...................  ......      15,665  ......      15,665  ......  ..........
        STRATEGIC PLATFORM SUPPORT EQUIP............  ......       7,499  ......       7,499  ......  ..........
    TRAINING EQUIPMENT:                                                                                         
        OTHER SPAWAR TRAINING EQUIPMENT.............  ......       3,569  ......       3,569  ......  ..........
        OTHER TRAINING EQUIPMENT....................  ......      24,529  ......      24,529  ......  ..........
    AVIATION ELECTRONIC EQUIPMENT:                                                                              
        MATCALS.....................................  ......       9,726  ......       9,726  ......  ..........
        SHIPBOARD AIR TRAFFIC CONTROL...............  ......       2,971  ......       2,971  ......  ..........
        AUTOMATIC CARRIER LANDING SYSTEM............  ......      13,200  ......      13,200  ......  ..........
        NATIONAL AIR SPACE SYSTEM...................  ......       2,239  ......       2,239  ......  ..........
        AIR STATION SUPPORT EQUIPMENT...............  ......       9,495  ......       9,495  ......  ..........
        MICROWAVE LANDING SYSTEM....................  ......       5,311  ......       5,311  ......  ..........
        FACSFAC.....................................  ......       7,001  ......       7,001  ......  ..........
        ID SYSTEMS..................................  ......      11,293  ......      11,293  ......  ..........
        TAC A/C MISSION PLANNING SYS(TAMPS).........  ......      15,722  ......      15,722  ......  ..........
    OTHER SHORE ELECTRONIC EQUIPMENT:                                                                           
        JMCIS ASHORE................................  ......       3,393  ......       3,393  ......  ..........
        JMCIS OED...................................  ......         343  ......         343  ......  ..........
        TADIX-B.....................................  ......       5,239  ......       5,239  ......  ..........
        JMCIS TACTICAL/MOBILE.......................  ......       2,888  ......       2,888  ......  ..........
        RADIAC......................................  ......       6,093  ......       6,093  ......  ..........
        GPETE.......................................  ......       7,461  ......       7,461  ......  ..........
        INTEG COMBAT SYSTEM TEST FACILITY...........  ......       3,877  ......       3,877  ......  ..........
        CALIBRATION STANDARDS.......................  ......       2,075  ......      20,075  ......     +18,000
        EMI CONTROL INSTRUMENTATION.................  ......       4,984  ......       4,984  ......  ..........
        SHORE ELEC ITEMS UNDER $2 MILLION...........  ......       3,425  ......       3,425  ......  ..........
    SHIPBOARD COMMUNICATIONS:                                                                                   
        SHIPBOARD TACTICAL COMMUNICATIONS...........  ......      24,497  ......      24,497  ......  ..........
        PORTABLE RADIOS.............................  ......       2,375  ......       2,375  ......  ..........
        SINCGARS....................................  ......       7,426  ......       7,426  ......  ..........
        SHIP COMMUNICATIONS AUTOMATION..............  ......      25,799  ......      49,799  ......     +24,000
        SHIP COMM ITEMS UNDER $2 MILLION............  ......      12,374  ......      12,374  ......  ..........
    SUBMARINE COMMUNICATIONS:                                                                                   
        SHORE LF/VLF COMMUNICATIONS.................  ......       7,751  ......       7,751  ......  ..........
        SUBMARINE COMMUNICATION EQUIPMENT...........  ......      37,239  ......      37,239  ......  ..........
        ADVANCED VLF RECEIVER.......................  ......       7,643  ......       7,643  ......  ..........
    SATELLITE COMMUNICATIONS:                                                                                   
        SATCOM SHIP TERMINALS (SPACE)...............  ......     107,608  ......     122,808  ......     +15,200
        SATCOM SHORE TERMINALS (SPACE)..............  ......       4,987  ......       4,987  ......  ..........
    SHORE COMMUNICATIONS:                                                                                       
        JCS COMMUNICATIONS EQUIPMENT................  ......       2,603  ......       2,603  ......  ..........
        GCCS EQUIPMENT..............................  ......       1,560  ......       1,560  ......  ..........
        NAVAL SHORE COMMUNICATIONS..................  ......      72,465  ......      96,465  ......     +24,000
    CRYPTOGRAPHIC EQUIPMENT: INFO SYSTEMS SECURITY                                                              
     PROGRAM (ISSP).................................  ......      31,667  ......      39,667  ......      +8,000
    CRYPTOLOGIC EQUIPMENT: CRYPTOLOGIC                                                                          
     COMMUNICATIONS EQUIP...........................  ......       7,122  ......       7,122  ......  ..........
                                                     -----------------------------------------------------------
        TOTAL, COMMUNICATION & ELECTRONICS EQUIPMENT  ......     925,763  ......   1,121,163  ......    +195,400
AVIATION SUPPORT EQUIPMENT:                                                                                     
    SONOBUOYS:                                                                                                  
        AN/SSQ-36 (BT)..............................  ......       1,402  ......       1,402  ......  ..........
        AN/SSQ-53 (DIFAR)...........................  ......      28,382  ......      47,382  ......     +19,000
        AN/SSQ-62 (DICASS)..........................  ......      24,291  ......      31,291  ......      +7,000
        SIGNAL, UNDERWATER SOUND (SUS)..............  ......         672  ......         672  ......  ..........
    AIRCRAFT SUPPORT EQUIPMENT:                                                                                 
        WEAPONS RANGE SUPPORT EQUIPMENT.............  ......       4,858  ......       4,858  ......  ..........
        EXPEDITIONARY AIRFIELDS.....................  ......       1,252  ......       1,252  ......  ..........
        AIRCRAFT REARMING EQUIPMENT.................  ......      10,356  ......      10,356  ......  ..........
        AIRCRAFT LAUNCH & RECOVERY EQUIP-  MENT.....  ......      29,630  ......      29,630  ......  ..........
        METEOROLOGICAL EQUIPMENT....................  ......      17,816  ......      17,816  ......  ..........
        OTHER PHOTOGRAPHIC EQUIPMENT................  ......         805  ......         805  ......  ..........
        AVIATION LIFE SUPPORT.......................  ......      15,345  ......      15,345  ......  ..........
        AIRBORNE MINE COUNTERMEASURES...............  ......      20,192  ......      20,192  ......  ..........
        LAMPS MK III SHIPBOARD EQUIPMENT............  ......       5,805  ......       5,805  ......  ..........
        REWSON PHOTOGRAPHIC EQUIPMENT...............  ......         693  ......         693  ......  ..........
        STOCK SURVEILLANCE EQUIPMENT................  ......       1,586  ......       1,586  ......  ..........
        OTHER AVIATION SUPPORT EQUIPMENT............  ......       6,165  ......       6,165  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, AVIATION SUPPORT EQUIPMENT.........  ......     169,250  ......     195,250  ......     +26,000
ORDNANCE SUPPORT EQUIPMENT:                                                                                     
    SHIP GUN SYSTEM EQUIPMENT: GUN FIRE CONTROL                                                                 
     EQUIPMENT......................................  ......       9,753  ......       9,753  ......  ..........
    SHIP MISSILE SYSTEMS EQUIPMENT:                                                                             
        MK-92 FIRE CONTROL SYSTEM...................  ......         906  ......         906  ......  ..........
        HARPOON SUPPORT EQUIPMENT...................  ......         243  ......         243  ......  ..........
        ENGAGEMENT SYSTEMS SUPPORT..................  ......       6,881  ......       6,881  ......  ..........
        NATO SEASPARROW.............................  ......       6,866  ......      14,866  ......      +8,000
        RAM GMLS....................................  ......      68,292  ......      68,292  ......  ..........
        SHIP SELF DEFENSE SYSTEM....................  ......       5,841  ......       5,841  ......  ..........
        AEGIS SUPPORT EQUIPMENT.....................  ......      26,813  ......      26,813  ......  ..........
        SURFACE TOMAHAWK SUPPORT EQUIPMENT..........  ......      65,502  ......      65,502  ......  ..........
        SUBMARINE TOMAHAWK SUPPORT EQUIP............  ......       1,425  ......       1,425  ......  ..........
        VERTICAL LAUNCH SYSTEMS.....................  ......       7,591  ......       7,591  ......  ..........
    FBM SUPPORT EQUIPMENT:                                                                                      
        STRATEGIC PLATFORM SUPPORT EQUIP............  ......       2,312  ......       2,312  ......  ..........
        STRATEGIC MISSILE SYSTEMS EQUIP.............  ......     231,528  ......      61,528  ......    -170,000
    ASW SUPPORT EQUIPMENT:                                                                                      
        SSN COMBAT CONTROL SYSTEMS..................  ......      20,511  ......      20,511  ......  ..........
        SUBMARINE ASW SUPPORT EQUIPMENT.............  ......       3,442  ......       3,442  ......  ..........
        SURFACE ASW SUPPORT EQUIPMENT...............  ......       5,929  ......       5,929  ......  ..........
        ASW RANGE SUPPORT EQUIPMENT.................  ......       3,551  ......       3,551  ......  ..........
    OTHER ORDNANCE SUPPORT EQUIPMENT:                                                                           
        EXPLOSIVE ORDNANCE DISPOSAL EQUIP...........  ......       7,521  ......       7,521  ......  ..........
        UNMANNED SEABORNE TARGET....................  ......       4,271  ......       2,271  ......      -2,000
        ANTI-SHIP MISSILE DECOY SYSTEM..............  ......      24,696  ......      33,696  ......      +9,000
        INDUSTRIAL FACILITIES (CALIBRATION                                                                      
         EQUIPMENT).................................  ......       1,373  ......       1,373  ......  ..........
        STOCK SURVEILLANCE EQUIPMENT................  ......       1,292  ......       1,292  ......  ..........
    OTHER EXPENDABLE ORDNANCE:                                                                                  
        FLEET MINE SUPPORT EQUIPMENT................  ......       5,269  ......       5,269  ......  ..........
        SURFACE TRAINING DEVICE MODS................  ......       4,829  ......       4,829  ......  ..........
        SUBMARINE TRAINING DEVICE MODS..............  ......      23,025  ......      23,025  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, ORDNANCE SUPPORT EQUIPMENT.........  ......     539,662  ......     384,662  ......    -155,000
CIVIL ENGINEERING SUPPORT EQUIPMENT:                                                                            
    ARMORED SEDANS..................................  ......         274  ......         274  ......  ..........
    PASSENGER CARRYING VEHICLES.....................     194       5,689     194       5,689  ......  ..........
    SPECIAL PURPOSE VEHICLES........................  ......       2,795  ......       2,795  ......  ..........
    CONSTRUCTION & MAINTENANCE EQUIP................  ......       3,700  ......       3,700  ......  ..........
    FIRE FIGHTING EQUIPMENT.........................  ......       1,543  ......       1,543  ......  ..........
    TACTICAL VEHICLES...............................  ......       2,459  ......       2,459  ......  ..........
    AMPHIBIOUS EQUIPMENT............................  ......       6,233  ......       6,233  ......  ..........
    COMBAT CONSTRUCTION SUPPORT EQUIP...............  ......         245  ......         245  ......  ..........
    MOBILE UTILITIES SUPPORT EQUIPMENT..............  ......       1,160  ......       1,160  ......  ..........
    COLLATERAL EQUIPMENT............................  ......         530  ......         530  ......  ..........
    OCEAN CONSTRUCTION EQUIPMENT....................  ......         332  ......         332  ......  ..........
    POLLUTION CONTROL EQUIPMENT.....................  ......      28,650  ......      25,050  ......      -3,600
                                                     -----------------------------------------------------------
      TOTAL, CIVIL ENGINEERING SUPPORT EQUIP-  MENT.  ......      53,610  ......      50,010  ......      -3,600
SUPPLY SUPPORT EQUIPMENT:                                                                                       
    FORKLIFT TRUCKS.................................  ......       6,328  ......       6,328  ......  ..........
    OTHER MATERIALS HANDLING EQUIPMENT..............  ......       2,063  ......       2,063  ......  ..........
    FIRST DESTINATION TRANSPORTATION................  ......       3,930  ......       3,930  ......  ..........
    SPECIAL PURPOSE SUPPLY SYSTEMS..................  ......      44,207  ......      44,207  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, SUPPLY SUPPORT EQUIPMENT...............  ......      56,528  ......      56,528  ......  ..........
PERSONNEL AND COMMAND SUPPORT EQUIPMENT:                                                                        
    TRAINING DEVICES: TRAINING SUPPORT EQUIP-  MENT.  ......       2,065  ......       2,065  ......  ..........
    COMMAND SUPPORT EQUIPMENT: COMMAND SUPPORT                                                                  
     EQUIPMENT......................................  ......      15,915  ......      15,915  ......  ..........
    PORT SECURITY UNIT EQUIPMENT....................  ......  ..........  ......      13,500  ......     +13,500
    INTELLIGENCE SUPPORT EQUIPMENT..................  ......      22,449  ......      22,449  ......  ..........
    OPERATING FORCES SUPPORT EQUIPMENT..............  ......       4,743  ......       4,743  ......  ..........
    ENVIRONMENTAL SUPPORT EQUIPMENT.................  ......      15,678  ......      21,678  ......      +6,000
                                                     -----------------------------------------------------------
      TOTAL, PERSONNEL AND COMMAND SUPPORT EQUIPMENT  ......      60,850  ......      80,350  ......     +19,500
OTHER:                                                                                                          
    SPARES AND REPAIR PARTS.........................  ......     248,717  ......     228,717  ......     -20,000
    ECONOMIC ASSUMPTIONS............................  ......  ..........  ......     -19,000  ......     -19,000
                                                     ===========================================================
      TOTAL, OTHER PROCUREMENT, NAVY................  ......   2,825,500  ......   2,865,800  ......     +40,300
----------------------------------------------------------------------------------------------------------------

                   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 Navy to address budget 
shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
SNN acoustics...................................................          77,953          85,953          +8,000
Carrier ASW module..............................................  ..............          12,000         +12,000
Shallow water MCM...............................................  ..............          10,000         +10,000
Calibration standards...........................................           2,075          20,075         +18,000
----------------------------------------------------------------------------------------------------------------

    SSN acoustics.--The Committee recommends an addition of 
$8,000,000 to increase from 20 to 40 the number of TB-23 towed 
array sonar upgrades.
    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 
projects.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Strategic missile systems equipment.............................         231,528          61,528        -170,000
Unmanned seaborne target........................................           4,271           2,271          -2,000
Pollution control equipment.....................................         156,775         135,775         -21,000
----------------------------------------------------------------------------------------------------------------

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Other navigation equipment......................................          31,552          49,552         +18,000
Radar support...................................................           1,708          10,708          +9,000
Navy tactical data system.......................................          14,335          26,335         +12,000
JMCIS AFLOAT....................................................          22,403          34,403         +12,000
Naval Tactical Command support system...........................          49,710          92,910         +43,000
Ship communications automation..................................          25,799          49,799         +24,000
SATCOM ship terminals (space)...................................         107,608         122,808         +15,200
Naval shore communications......................................          72,465          96,465         +24,000
Information Systems Security Program [ISSP].....................          31,667          39,667          +8,000
AN/SSQ-53 (DIFAR)...............................................          28,382          47,382         +19,000
AN/SSQ-62 (DICASS)..............................................          24,291          31,291          +7,000
NATO Seasparrow.................................................           6,866          14,866          +8,000
Antiship missile decoy system...................................          24,696          33,696          +9,000
Pollution control equipment.....................................          28,650          25,050          -3,600
Environmental support equipment.................................          15,678          21,678          +6,000
Spare and repair parts..........................................         248,717         228,717         -20,000
Port security unit equipment....................................  ..............          13,500         +13,500
----------------------------------------------------------------------------------------------------------------

    Environmental support equipment.--The Committee recommends 
an increase of $6,000,000 above the budget request to provide 
additional funding for procurement of oceanographic survey 
equipment, such as shallow-water multibeam systems, outfitting 
of hydrographic survey launches, high resolution acoustic 
imagery systems, upgraded survey and navigation equipment 
suites for use in cooperative international hydrographic 
programs, digital side-scan sonars, fly away survey suites that 
can be mounted aboard small vessels for surveys of opportunity, 
and unmanned undersea vehicles used for ocean data collection.

                       Procurement, Marine Corps

Appropriations, 1997....................................    $569,073,000
Budget estimate, 1998...................................     374,306,000
Committee recommendation................................     440,106,000

    The Committee recommends an appropriation of $440,106,000 
for the ``Procurement, Marine Corps'' account for fiscal year 
1998, an increase of $65,800,000 to the President's 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..................................  ......      13,520  ......      13,520  ......  ..........
        LAV PIP.....................................  ......         600  ......         600  ......  ..........
        LIGHT ARMORED VEHICLE.......................  ......       6,727  ......       6,727  ......  ..........
        MODIFICATION KITS (TRKD VEH)................  ......       4,483  ......       4,483  ......  ..........
        ITEMS UNDER $2.0 MILLION (TRKD VEH).........  ......          99  ......          99  ......  ..........
    ARTILLERY AND OTHER WEAPONS:                                                                                
        MOD KITS (ARTILLERY)........................  ......       1,787  ......       1,787  ......  ..........
        ITEMS UNDER $2.0 MILLION (ALL OTHER)........  ......         810  ......         810  ......  ..........
        MARINE ENHANCEMENT PROGRAM..................  ......       1,513  ......       1,513  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, WEAPONS AND COMBAT VEHICLES........  ......      29,539  ......      29,539  ......  ..........
GUIDED MISSILES AND EQUIPMENT:                                                                                  
    GUIDED MISSILES:                                                                                            
        HAWK MOD....................................  ......       3,475  ......       3,475  ......  ..........
        JAVELIN (MYP)...............................     194      42,146     194      59,146  ......     +17,000
        PEDESTAL MOUNTED STINGER (PMS) (MYP)........  ......         217  ......         217  ......  ..........
    OTHER SUPPORT: MODIFICATION KITS................  ......         842  ......         842  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, GUIDED MISSILES AND EQUIPMENT..........  ......      46,680  ......      63,680  ......     +17,000
COMMUNICATIONS AND ELECTRONICS EQUIPMENT:                                                                       
    REPAIR AND TEST EQUIPMENT:                                                                                  
        AUTO TEST EQUIP SYS.........................  ......      12,121  ......      12,121  ......  ..........
        GENERAL PURPOSE ELECTRONIC TEST  EQUIP......  ......       9,142  ......       9,142  ......  ..........
    OTHER COMM/ELEC EQUIPMENT:                                                                                  
        INTELL/COMM EQUIPMENT (NON-TEL):                                                                        
            AN/TPQ-36 FIRE FINDER RADAR UPGRADE.....  ......         172  ......         172  ......  ..........
            INTELLIGENCE SUPPORT EQUIPMENT..........  ......      16,413  ......      16,413  ......  ..........
            MOD KITS (INTEL)........................  ......       5,824  ......       5,824  ......  ..........
            ITEMS LESS THAN $2M (INTELL)............  ......         631  ......         631  ......  ..........
        REPAIR AND TEST EQUIPMENT (NON-TEL): GENERAL                                                            
         PURPOSE MECHANICAL TMDE....................  ......       2,179  ......      22,179  ......     +20,000
        OTHER COMM/ELEC EQUIPMENT (NON-TEL): NIGHT                                                              
         VISION EQUIPMENT...........................  ......  ..........  ......       7,000  ......      +7,000
        OTHER SUPPORT (NON-TEL):                                                                                
            COMMAND POST SYSTEMS....................  ......      13,923  ......      13,923  ......  ..........
            MANEUVER C2 SYSTEMS.....................  ......      15,690  ......      15,690  ......  ..........
            RADIO SYSTEMS...........................  ......      16,907  ......      16,907  ......  ..........
            COMM SWITCHING & CONTROL SYS-  TEMS.....  ......      44,741  ......      44,741  ......  ..........
            COMM & ELEC INFRASTRUCTURE SUPPORT......  ......      41,809  ......      66,609  ......     +24,800
            MOD KITS MAGTF C41......................  ......      22,974  ......      22,974  ......  ..........
            ITEMS LESS THAN $2.0 MILLION MAGTF C41..  ......         371  ......         371  ......  ..........
            MODIFICATION KITS (OTHER)...............  ......       1,734  ......       1,734  ......  ..........
            ITEMS LESS THAN $2.0 MILLION  (OTHER)...  ......       3,018  ......       3,018  ......  ..........
            AIR OPERATIONS C2 SYSTEMS...............  ......       9,371  ......       9,371  ......  ..........
                                                     -----------------------------------------------------------
              TOTAL, COMMUNICATIONS AND ELECTRONICS                                                             
               EQUIPMENT............................  ......     217,020  ......     268,820  ......     +51,800
SUPPORT VEHICLES:                                                                                               
    ADMINISTRATIVE VEHICLES:                                                                                    
        COMMERCIAL PASSENGER VEHICLES...............      40       1,276      40       1,276  ......  ..........
        COMMERCIAL CARGO VEHICLES...................  ......       6,946  ......       6,946  ......  ..........
    TACTICAL VEHICLES: 3/4T TRUCK HMMWV (MYP).......  ......         696  ......         696  ......  ..........
    OTHER SUPPORT: ITEMS LESS THAN $2 MILLION.......  ......         594  ......         594  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, SUPPORT VEHICLES.......................  ......       9,512  ......       9,512  ......  ..........
ENGINEER AND OTHER EQUIPMENT:                                                                                   
    ENVIRONMENTAL CONTROL EQUIP ASSORT..............  ......       1,968  ......       1,968  ......  ..........
    BULK LIQUID EQUIPMENT...........................  ......       7,913  ......       7,913  ......  ..........
    POWER EQUIPMENT ASSORTED........................  ......       3,627  ......       3,627  ......  ..........
MATERIALS HANDLING EQUIPMENT:                                                                                   
    COMMAND SUPPORT EQUIPMENT.......................  ......         613  ......         613  ......  ..........
    PHYSICAL SECURITY EQUIPMENT.....................  ......       1,514  ......       1,514  ......  ..........
    GARRISON MOBILE ENGR EQUIP......................  ......       2,998  ......       2,998  ......  ..........
    WAREHOUSE MODERNIZATION.........................  ......       1,584  ......       1,584  ......  ..........
    MATERIAL HANDLING EQUIP.........................  ......       5,241  ......       5,241  ......  ..........
    FIRST DESTINATION TRANSPORTATION................  ......       1,396  ......       1,396  ......  ..........
GENERAL PROPERTY:                                                                                               
    FIELD MEDICAL EQUIPMENT.........................  ......       1,081  ......       1,081  ......  ..........
    TRAINING DEVICES................................  ......      10,585  ......      10,585  ......  ..........
    CONTAINER FAMILY................................  ......       6,191  ......       6,191  ......  ..........
OTHER SUPPORT:                                                                                                  
    MODIFICATION KITS...............................  ......       1,215  ......       1,215  ......  ..........
    ITEMS LESS THAN $2 MILLION......................  ......         714  ......         714  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, ENGINEER AND OTHER EQUIPMENT...........  ......      46,640  ......      46,640  ......  ..........
SPARES AND REPAIR PARTS.............................  ......      24,915  ......      24,915  ......  ..........
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......      -3,000  ......      -3,000
                                                     ===========================================================
      TOTAL, PROCUREMENT, MARINE CORPS..............  ......     374,306  ......     440,106  ......     +65,800
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

    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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Repair and test equipment: General purpose mechanical TMDE......           2,179          22,179         +20,000
----------------------------------------------------------------------------------------------------------------

    General purpose mechanical TMDE.--The Committee has 
provided $20,000,000 for the procurement of ground and light 
armored vehicle [LAV]-AT TOW 2 automatic test equipment and 
test program sets [DSETS].

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Javelin (MVP)...................................................          42,146          59,146         +17,000
Night vision equipment..........................................  ..............           7,000          +7,000
Communications and electronics..................................          41,809          66,609         +24,800
----------------------------------------------------------------------------------------------------------------

                    Aircraft Procurement, Air Force

Appropriations, 1997.................................... $6,404,980,000 
Budget estimate, 1998...................................  5,684,847,000 
    (By transfer--national defense stockpile)...........   (133,000,000)
Committee recommendation................................  6,375,847,000 

    The Committee recommends $6,375,847,000, an increase of 
$691,000,000 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 airlift aircraft, fighters, tactical 
transports, trainers, and weather reconnaissance 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, AIR FORCE                                                                       
                                                                                                                
COMBAT AIRCRAFT:                                                                                                
    STRATEGIC OFFENSIVE:                                                                                        
        B-1B.......................................  ......      10,851  ......      10,851  ......  ...........
        B-2A.......................................  ......     174,086  ......     157,786  ......      -16,300
    TACTICAL FORCES:                                                                                            
        ADVANCED TACTICAL FIGHTER (AP-CY)..........  ......      80,864  ......  ..........  ......      -80,864
        F-15A......................................       3     159,000       6     259,800      +3     +100,800
        F-15A (AP-CY)..............................  ......      11,000  ......      11,000  ......  ...........
                                                    ------------------------------------------------------------
          TOTAL, COMBAT AIRCRAFT...................  ......     435,801  ......     439,437  ......       +3,636
AIRLIFT AIRCRAFT:                                                                                               
    TACTICAL AIRLIFT:                                                                                           
        C-17 (MYP).................................       9   1,923,311      11   2,341,811      +2     +418,500
        C-17 (MYP) (AP-CY).........................  ......     278,200  ......     278,200  ......  ...........
    OTHER AIRLIFT:                                                                                              
        C-130J.....................................       1      49,928  ......      48,000      -1       -1,928
        WC-130J....................................  ......  ..........       3     177,000      +3     +177,000
                                                    ------------------------------------------------------------
          TOTAL, AIRLIFT AIRCRAFT..................  ......   2,251,439  ......   2,845,011  ......     +593,572
TRAINER AIRCRAFT: OPERATIONAL TRAINERS: JPATS......      18      65,415      22      77,615      +4      +12,200
                                                    ------------------------------------------------------------
      TOTAL, TRAINER AIRCRAFT......................  ......      65,415  ......      77,615  ......      +12,200
OTHER AIRCRAFT:                                                                                                 
    HELICOPTERS:                                                                                                
        MISSION SUPPORT AIRCRAFT:                                                                               
            CIVIL AIR PATROL A/C...................      27       2,645      27       2,645  ......  ...........
            SMALL VCX (C-37).......................  ......  ..........       1       6,000      +1       +6,000
            LARGE VCX (C-32A)......................       2     190,116  ......  ..........      -2     -190,116
        OTHER AIRCRAFT:                                                                                         
            E-8C...................................       1     313,991       1     309,291  ......       -4,700
            E-8C (AP-CY)...........................  ......      22,400  ......      22,400  ......  ...........
            PREDATOR UAV...........................      15     116,506      15     116,506  ......  ...........
                                                    ------------------------------------------------------------
              TOTAL, OTHER AIRCRAFT................  ......     645,658  ......     456,842  ......     -188,816
MODIFICATION OF INSERVICE AIRCRAFT:                                                                             
    STRATEGIC AIRCRAFT:                                                                                         
        B-2A MODS..................................  ......      13,853  ......      13,853  ......  ...........
        B-1B MODS..................................  ......     114,245  ......      96,845  ......      -17,400
        B-52 MODS..................................  ......      28,907  ......      39,307  ......      +10,400
        F-117 MODS.................................  ......      28,296  ......      28,296  ......  ...........
    TACTICAL AIRCRAFT:                                                                                          
        A-10 MODS..................................  ......      24,971  ......      24,971  ......  ...........
        F-15 MODS..................................  ......     169,568  ......     197,568  ......      +28,000
        F-16 MODS..................................  ......     216,158  ......     217,058  ......         +900
        EF-111 MODS................................  ......         236  ......         236  ......  ...........
        T/AT-37 MODS...............................  ......          95  ......          95  ......  ...........
    AIRLIFT AIRCRAFT:                                                                                           
        C-5 MODS...................................  ......      83,036  ......      83,036  ......  ...........
        C-9 MODS...................................  ......      16,323  ......      16,323  ......  ...........
        C-17 MODS..................................  ......      59,053  ......      59,053  ......  ...........
        C-21 MODS..................................  ......       6,911  ......       6,911  ......  ...........
        C-22 MODS..................................  ......         276  ......         276  ......  ...........
        C-STOL MODS................................  ......          51  ......          51  ......  ...........
        C-137 MODS.................................  ......       2,262  ......       2,262  ......  ...........
        C-141 MODS.................................  ......      30,705  ......      30,705  ......  ...........
    TRAINER AIRCRAFT:                                                                                           
        T-1 MODS...................................  ......       6,974  ......       6,974  ......  ...........
        T-3 MODS...................................  ......         100  ......         100  ......  ...........
        T-38 MODS..................................  ......      14,806  ......      14,806  ......  ...........
        T-41 MODS..................................  ......         100  ......         100  ......  ...........
        T-43 MODS..................................  ......      10,256  ......      10,256  ......  ...........
    OTHER AIRCRAFT:                                                                                             
        KC-10 MODS.................................  ......      14,533  ......      14,533  ......  ...........
        C-12 MODS..................................  ......       4,680  ......       4,680  ......  ...........
        C-18 MODS..................................  ......         272  ......         272  ......  ...........
        C-20 MODS..................................  ......       6,535  ......       6,535  ......  ...........
        VC-25A MOD.................................  ......      10,760  ......      10,760  ......  ...........
        C-130 MODS.................................  ......      94,511  ......      94,511  ......  ...........
        C-135 MODS.................................  ......     137,861  ......     137,861  ......  ...........
        E-3 MODS...................................  ......     134,659  ......     123,559  ......      -11,100
        E-4 MODS...................................  ......      11,385  ......      11,385  ......  ...........
        H-1 MODS...................................  ......       2,778  ......       3,578  ......         +800
        H-60 MODS..................................  ......      16,852  ......      16,852  ......  ...........
        OTHER AIRCRAFT MODS........................  ......      33,065  ......      33,065  ......  ...........
    OTHER MODIFICATIONS:                                                                                        
        CLASSIFIED PROJECTS MODS...................  ......       7,552  ......       7,552  ......  ...........
        PASSENGER SAFETY MODIFICATIONS.............  ......  ..........  ......      75,000  ......      +75,000
        DARP MODS..................................  ......      67,136  ......     163,736  ......      +96,600
                                                    ------------------------------------------------------------
          TOTAL, MODIFICATION OF INSERVICE AIRCRAFT  ......   1,369,761  ......   1,552,961  ......     +183,200
AIRCRAFT SPARES AND REPAIR PARTS: SPARES AND REPAIR                                                             
 PARTS.............................................  ......     350,010  ......     350,010  ......  ...........
AIRCRAFT SUPPORT EQUIPMENT AND FACILITIES:                                                                      
    COMMON SUPPORT EQUIPMENT.......................  ......     151,238  ......     151,238  ......  ...........
    POST PRODUCTION SUPPORT:                                                                                    
        A-10 POST PROD SUPP........................  ......       2,753  ......       2,753  ......  ...........
        F-15 POST PROD SUPP........................  ......       8,089  ......       8,089  ......  ...........
        F-16 POST PROD SUPP........................  ......      22,402  ......      22,402  ......  ...........
        INDUSTRIAL PREPAREDNESS....................  ......      25,855  ......      25,855  ......  ...........
        WAR CONSUMABLES............................  ......      67,565  ......      67,565  ......  ...........
        MISC PRODUCTION CHARGES....................  ......     275,804  ......     267,012  ......       -8,792
        COMMON ECM EQUIPMENT.......................  ......       4,564  ......       4,564  ......  ...........
        DARP.......................................  ......     141,493  ......     141,493  ......  ...........
                                                    ------------------------------------------------------------
          TOTAL, AIRCRAFT SUPPORT EQUIPMENT AND                                                                 
           FACILITIES..............................  ......     699,763  ......     690,971  ......       -8,792
TRANSFER FROM NATIONAL DEFENSE STOCKPILE...........  ......    -133,000  ......  ..........  ......     +133,000
ECONOMIC ASSUMPTIONS...............................  ......  ..........  ......     -37,000  ......      -37,000
                                                    ============================================================
      TOTAL, AIRCRAFT PROCUREMENT, AIR FORCE.......  ......   5,684,847  ......   6,375,847  ......     +691,000
          TRANSFER.................................  ......   (133,000)  ......  ..........  ......   (-133,000)
                                                    ------------------------------------------------------------
      TOTAL FUNDING AVAILABLE......................  ......   5,817,847  ......   6,375,847  ......     +558,000
----------------------------------------------------------------------------------------------------------------

                   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]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
B-2A............................................................         174,086         157,786         -16,300
    Increased other Government costs............................  ..............         -10,100         -10,100
    Engineering change orders growth............................  ..............          -6,200          -6,200
E-8C............................................................         313,991         309,291          -4,700
    Systems engineering growth..................................  ..............          -4,700          -4,700
E-3 modifications...............................................         134,659         123,559         -11,100
    Extend sentry computers and displays concur-  rency.........  ..............          -8,600          -8,600
    Offensive counter air change orders.........................  ..............          -2,500          -2,500
----------------------------------------------------------------------------------------------------------------

    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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
LARGE VCX (C-32A)...............................................         190,116  ..............        -190,116
    Convert two aircraft purchase to lease......................  ..............        -190,116        -190,116
B-1B modifications..............................................         114,245          96,845         -17,400
    Block D modification concurrency............................  ..............         -17,400         -17,400
Miscellaneous production charges................................         275,804         267,012          -8,792
----------------------------------------------------------------------------------------------------------------

    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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
C-17............................................................       1,923,311       2,341,811        +418,500
    Two additional aircraft.....................................  ..............        +440,200        +440,200
    Late obligation and favorable contract negotia- tion........  ..............         -21,700         -21,700
Small VCX (C-37)................................................  ..............           6,000          +6,000
    One additional aircraft.....................................  ..............          +6,000          +6,000
B-52 modifications..............................................          28,907          39,307         +10,400
F-16 modifications..............................................         216,158         217,058            +900
    HARM targeting system [HTS] upgrades........................  ..............          +3,500          +3,500
    600-gallon fuel tanks.......................................  ..............         +10,000         +10,000
    Late obligations \1\........................................  ..............         -12,600         -12,600
H-1 modifications...............................................           2,778           3,578            +800
    Oil debris detection system.................................  ..............            +800            +800
Passenger safety modifications..................................  ..............          75,000         +75,000
----------------------------------------------------------------------------------------------------------------
\1\ Program adjustment recommended as described under the heading ``Excess funds.''                             

    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 1998:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Advanced tactical fighter advance procurement...................          80,864  ..............         -80,864
F-15A...........................................................         159,000         259,800        +100,800
    Three additional F-15E's....................................  ..............        +100,800        +100,800
C-130J..........................................................          49,928          48,000          -1,928
    One C-130J (shifted to NGRE account)........................  ..............         -49,928         -49,928
    C-130J spares and logistics.................................  ..............         +48,000         +48,000
WC-130J.........................................................  ..............         177,000        +177,000
    Three WC-130J's.............................................  ..............        +177,000        +177,000
JPATS...........................................................          65,415          77,615         +12,200
    Four additional aircraft....................................  ..............         +12,200         +12,200
F-15 modifications..............................................         169,568         197,568         +28,000
    F100-220E engine upgrade....................................  ..............         +22,800         +22,800
    MIDS fighter data link terminals \1\........................  ..............          +5,200          +5,200
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project increases'' heading of 
  this report section.                                                                                          

    C-17.--The Committee has provided $2,341,811,000 for 
procurement of C-17 aircraft, an increase of $418,500,000 to 
the budget request amount. The Committee recommendation 
includes an increase of $440,200 to purchase two additional C-
17 aircraft, bringing the number to 11 aircraft in fiscal year 
1998. The Committee recommendation also deletes $21,700,000 
based on favorable contract negotiations and delayed obligation 
of funds.
    Procurement of additional C-17 aircraft at this time offers 
a number of benefits. First, this increase provides a smoother 
ramp to the projected procurement rate of 13 in fiscal year 
1999. Second, the Committee has reviewed the C-17 program 
carefully and found the program to be on track and making solid 
strides on reducing unit cost while producing a high-quality 
aircraft. Third, speeding the pace of acquisition will bring 
down the cost of the remaining aircraft by accelerating 
progress on the production learning curve. Finally, the C-17 
has proven to be an essential element in successful conduct of 
the Bosnia mission. Procuring these additional aircraft will 
allow the Department of Defense to field C-17 aircraft earlier 
with active and Air National Guard units, providing necessary 
airlift capability.
    Large VCX.--Last year, the Congress approved a plan to 
lease C-32 executive transport aircraft, with an option to 
purchase in the future. However, the Air Force budget request 
seeks $190,116,000 to purchase two of these aircraft. The 
Committee has provided no funds to proceed with the immediate 
purchase of these aircraft.
    The Air Force has indicated that the purchase option is 
being executed immediately because of impediments posed by the 
need to indemnify the leasing agent. To address this problem, 
the Committee has included a general provision which provides 
the Secretary of the Air Force with the necessary statutory 
authority to indemnify the leasing agent. The Committee further 
directs that the Air Force shall use available funds in the 
``Operation and maintenance, Air Force'' account to execute the 
lease of two VC-32 aircraft in fiscal year 1998.
    Small VCX.--No funds were requested in the fiscal year 1998 
budget to make additional purchases of C-37A aircraft. The 
Committee understands that favorable competitive negotiations 
have resulted in a contract savings of $27,100,000 from the 
fiscal year 1997 appropriation. The Committee recommendation 
provides $6,000,000 in the C-37A aircraft procurement activity 
in fiscal year 1998. The Committee directs that the budget 
increase of $6,000,000 be combined with the fiscal year 1997 
contract savings to purchase one additional aircraft for the 
U.S. Army. The Committee understands that the Army will trade 
in an existing aircraft to facilitate the purchase and 
equipping of this new C-37A.
    Global air traffic management.--The Committee recognizes 
the need for military aircraft to operate efficiently in an 
increasingly congested air traffic system. The Committee also 
recognizes that the civil aviation community is already using 
commercially available equipment to operate in this environment 
and is shaping the evolution of the future air traffic systems. 
The Committee applauds the Air Force for initiating the global 
air traffic management [GATM] effort and directs the Air Force 
to use commercial off-the-shelf [COTS]/commercial 
nondevelopmental item [NDI] solutions in order to ensure near 
term and future compatibility with civilian systems and to 
reduce the cost of implementing nontactical GATM capabilities.

                         manned reconnaissance

                    summary of committee adjustments

                        [In thousands of dollars]

                                                               Committee
        Program                                              adjustments

U-2 senior glass..................................................24,000
U-2 SYERS......................................................... 5,000
RJ reengining.....................................................52,600
RJ heat exchangers................................................ 6,000
SR-71............................................................. 9,000

    U-2 fuel conversion.--The U-2 requires special fuel that 
can withstand extremely cold temperatures for long periods 
without turning to slush. Because of this special need, fuel 
costs are very high and logistics support is time intensive. 
The Committee understands that it is technically feasible to 
convert the U-2 to the commonly used aircraft fuel, JP-8. The 
Committee directs the Air Force to review this issue to 
determine if U-2 fuel conversion would be beneficial in terms 
of cost, logistics, and performance. The results of this review 
should be provided to the congressional defense oversight 
committees by March 15, 1998.
    SR-71.--The Committee has provided $9,000,000 in 
procurement for the SR-71. This funding is to be used to modify 
film cameras to electro-optical, enhance radar processing and 
installation of the GPS navigation system and electronic 
intelligence system.

                     Missile Procurement, Air Force

Appropriations, 1997....................................  $2,297,145,000
Budget estimate, 1998...................................   2,557,741,000
Committee recommendation................................   2,431,741,000

    The Committee recommends an appropriation of $2,431,741,000 
for the ``Missile procurement, Air Force'' account for fiscal 
year 1998. This recommendation is $126,000,000 below the 
President's 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 EQUIPMENT--BALLISTIC:                                                                   
     MISSILE REPLACEMENT EQ--BALLISTIC..............  ......      27,604  ......      27,604  ......  ..........
OTHER MISSILES:                                                                                                 
    STRATEGIC:                                                                                                  
        HAVE NAP....................................  ......  ..........  ......      39,000  ......     +39,000
        ADVANCED CRUISE MISSILE.....................  ......         843  ......         843  ......  ..........
    TACTICAL:                                                                                                   
        JOINT STANDOFF WEAPON.......................  ......       1,139  ......       1,139  ......  ..........
        AMRAAM......................................     173     117,768     173      76,668  ......     -41,100
        AGM-130 POWERED GBU-15......................  ......       1,539  ......       1,539  ......  ..........
    TARGET DRONES...................................  ......      25,718  ......      25,718  ......  ..........
    INDUSTRIAL FACILITIES: MISSILE INDUSTRIAL                                                                   
     FACILITIES.....................................  ......       3,492  ......       3,492  ......  ..........
                                                     -----------------------------------------------------------
        TOTAL, OTHER MISSILES.......................  ......     150,499  ......     148,399  ......      -2,100
MODIFICATION OF INSERVICE MISSILES                                                                              
    CLASS IV:                                                                                                   
        PEACEKEEPER(M-X)............................  ......       5,250  ......       5,250  ......  ..........
        MM III MODIFICATIONS........................  ......     106,899  ......     106,899  ......  ..........
        AGM-88A HARM................................  ......  ..........  ......       9,600  ......      +9,600
        MODIFICATIONS UNDER $2.0M...................  ......         199  ......         199  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, MODIFICATION OF INSERVICE MISSILES.  ......     112,348  ......     121,948  ......      +9,600
    MISSILE SPARES + REPAIR PARTS: SPARES AND REPAIR                                                            
     PARTS..........................................  ......      28,808  ......      28,808  ......  ..........
OTHER SUPPORT:                                                                                                  
    SPACE PROGRAMS:                                                                                             
        SPACEBORNE EQUIP (COMSEC)...................  ......       9,304  ......       9,304  ......  ..........
        GLOBAL POSITIONING (MYP) SPACE..............       3     163,837       3     163,837  ......  ..........
        NUDET DETECTION SYSTEM......................  ......       1,194  ......       1,194  ......  ..........
        INERTIAL UPPER STAGES SPACE.................  ......      49,990  ......      49,990  ......  ..........
        TITAN SPACE BOOSTERS SPACE..................  ......     555,304  ......     455,304  ......    -100,000
        MEDIUM LAUNCH VEHICLE SPACE.................       4     165,783       4     165,783  ......  ..........
        MEDIUM LAUNCH VEHICLE SPACE (AP-CY).........  ......      52,715  ......      52,715  ......  ..........
        DEF METEOROLOGICAL SAT PROG SPACE...........  ......      35,243  ......      35,243  ......  ..........
        DEFENSE SUPPORT PROGRAM (MYP) SPACE.........  ......     113,708  ......     113,708  ......  ..........
        DEFENSE SATELLITE COMM SYSTEM SPACE.........  ......      76,434  ......      76,434  ......  ..........
    SPECIAL PROGRAMS:                                                                                           
        SPECIAL UPDATE PROGRAMS.....................  ......     241,570  ......     241,570  ......  ..........
        SPECIAL PROGRAMS............................  ......     773,400  ......     757,900  ......     -15,500
                                                     -----------------------------------------------------------
          TOTAL, OTHER SUPPORT......................  ......   2,238,482  ......   2,122,982  ......    -115,500
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......     -18,000  ......     -18,000
                                                     ===========================================================
      TOTAL, MISSILE PROCUREMENT, AIR FORCE.........  ......   2,557,741  ......   2,431,741  ......    -126,000
----------------------------------------------------------------------------------------------------------------

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    AGM-142 Have Nap.--The budget request did not include 
funding for the continued procurement of the AGM-142 Have Nap 
missile in fiscal year 1998. The Committee recommends providing 
$39,000,000 to exercise a priced option for the procurement of 
50 missiles in fiscal year 1998.
    Advanced medium range air-to-air missile [AMRAAM].--The Air 
Force budget request includes $117,768,000 for the procurement 
of 173 AMRAAM's in fiscal year 1998. The Committee recommends 
providing $76,668,000, a reduction of $41,100,000 from the 
budget request.
    A recent Defense inspector general audit report (No. 97-
157) concluded, in part, that the Department of the Air Force 
overpaid the AMRAAM contractor about $41,100,000 for 
manufacturing material, out of a total manufacturing material 
cost of $562,900,000 for 2,343 missiles from fiscal years 1991 
through 1994. The report goes on to recommend that the Air 
Force request a voluntary refund of the overpayment for lots 5 
through 8 and review pricing on lots 9 and 10 for additional 
excess prices. In light of the expected refund, the Committee 
recommends an equal reduction from the request and directs the 
Air Force to apply the moneys recovered from the contractor to 
fully fund the procurement of 173 AMRAAM's in fiscal year 1998.
    AGM-88A high speed antiradiation missile [HARM].--The 
budget request included no funds for the procurement or 
modification of the HARM for fiscal year 1998. The Committee 
recommends providing $9,600,000 for the procurement and 
installation of as many block IV seekers as these funds will 
allow.
    The Air Force has still not met its inventory objective of 
HARM block IV assets for deployment against advanced threat 
radars. The most cost-effective way to meet this inventory 
objective entails conversion of existing block III HARM's to 
the upgraded block IV version. The funds provided will allow 
the continued modification of block III missiles to the block 
IV configuration, thus allowing the Air Force to get closer to 
its validated inventory objectives.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Titan space boosters............................................         555,304         455,304        -100,000
----------------------------------------------------------------------------------------------------------------

                  Procurement of Ammunition, Air Force

Appropriations, 1997....................................    $293,153,000
Budget estimate, 1998...................................     403,984,000
Committee recommendation................................     400,984,000

    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 $400,984,000 
for the ``Procurement of ammunition, Air Force'' account for 
fiscal year 1998. The recommendation is a decrease of 
$3,000,000 from the budget request.

                     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..................      23,718      8,856      23,718      8,856  ......  ........
        2.75 INCH ROCKET HEAD SIGNATURE.........      13,940        919      13,940        919  ......  ........
        ITEMS LESS THAN $2,000,000..............  ..........         50  ..........         50  ......  ........
    CARTRIDGES:                                                                                                 
        5.56 MM.................................      23,273      7,590      23,273      7,590  ......  ........
        30 MM TRAINING..........................       3,278     27,447       3,278     27,447  ......  ........
        CARTRIDGE CHAFF RR-180..................         845     12,088         845     12,088  ......  ........
        SIGNAL MK-4 MOD 3.......................         596      1,122         596      1,122  ......  ........
        ITEMS LESS THAN $2,000,000..............  ..........      4,097  ..........      4,097  ......  ........
    BOMBS:                                                                                                      
        MK-82 INERT/BDU-50......................      30,672     22,218      30,672     22,218  ......  ........
        BOMB PRACTICE 25 POUND..................     397,760      5,613     397,760      5,613  ......  ........
        MK-84 BOMB--EMPTY.......................         994      2,482         994      2,482  ......  ........
        SENSOR FUZED WEAPON.....................         556    153,861         556    153,861  ......  ........
        JOINT DIRECT ATTACK MUNITION............       2,673     61,307       2,673     61,307  ......  ........
        WIND CORRECTED MUNITIONS DISPENSER......         280     19,871         280     19,871  ......  ........
        ITEMS LESS THAN $2,000,000..............  ..........        167  ..........        167  ......  ........
    ITEMS LESS THAN $2,000,000:                                                                                 
        FLARE, IR MJU-7B:                                                                                       
            FLARE, IR MJU-7B....................     662,280     14,698     662,280     14,698  ......  ........
            MJU-10B.............................     190,824     11,477     190,824     11,477  ......  ........
            M-206 CARTRIDGE FLARE...............   1,099,600     17,507   1,099,600     17,507  ......  ........
            CAD/PAD.............................  ..........     12,821  ..........     12,821  ......  ........
            REPLENISHMENT SPARES................  ..........        979  ..........        979  ......  ........
            MODIFICATIONS.......................  ..........        149  ..........        149  ......  ........
            ITEMS LESS THAN $2,000,000..........  ..........      4,608  ..........      4,608  ......  ........
        FUZES: JOINT PROGRAMMABLE FUSE  (JPF)...       1,170      5,880       1,170      5,880  ......  ........
                                                 ---------------------------------------------------------------
            TOTAL, AMMUNITION...................  ..........    395,807  ..........    395,807  ......  ........
                                                 ===============================================================
WEAPONS:                                                                                                        
    SMALL ARMS:                                                                                                 
        M-16 A2 RIFLE...........................  ..........      6,009  ..........      6,009  ......  ........
        9MM COMPACT PISTOL......................         260        183         260        183  ......  ........
        M-9 PISTOL..............................       2,265      1,127       2,265      1,127  ......  ........
        ITEMS LESS THAN $2,000,000..............  ..........        858  ..........        858  ......  ........
                                                 ---------------------------------------------------------------
          TOTAL, WEAPONS........................  ..........      8,177  ..........      8,177  ......  ........
                                                 ===============================================================
ECONOMIC ASSUMPTIONS............................  ..........  .........  ..........     -3,000  ......    -3,000
                                                 ===============================================================
      TOTAL, PROCUREMENT OF AMMUNITION, AIR                                                                     
       FORCE....................................  ..........    403,984  ..........    400,984  ......    -3,000
----------------------------------------------------------------------------------------------------------------

                      Other Procurement, Air Force

Appropriations, 1997....................................  $5,944,680,000
Budget estimate, 1998...................................   6,561,253,000
Committee recommendation................................   6,653,053,000

    The Committee recommends an appropriation of $6,653,053,000 
for the ``Other procurement, Air Force'' account for fiscal 
year 1998. The recommendation is an increase of $91,800,000 
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, 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.............................      88       1,520      88       1,520  ......  ..........
        STATION WAGON, 4X2..........................       7         120       7         120  ......  ..........
        BUSES.......................................      17         929      17         929  ......  ..........
        AMBULANCES..................................       3         247       3         247  ......  ..........
        LAW ENFORCEMENT VEHICLE.....................      80       1,603      80       1,603  ......  ..........
        ARMORED SEDAN...............................       1         232       1         232  ......  ..........
    CARGO + UTILITY VEHICLES:                                                                                   
        TRUCK, CARGO--UTILITY, 3/4T, 4X4............     154       4,414     154       4,414  ......  ..........
        TRUCK, CARGO--UTILITY, 1/2T, 4X2............     106       2,575     106       2,575  ......  ..........
        TRUCK, PICKUP, 1/2T, 4X2....................     292       4,006     292       4,006  ......  ..........
        TRUCK, PICKUP, COMPACT......................     206       2,681     206       2,681  ......  ..........
        TRUCK MULTI-STOP 1 TON 4X2..................     301       8,219     301       8,219  ......  ..........
        TRUCK CARRYALL..............................     150       3,548     150       3,548  ......  ..........
        COMMERCIAL UTILITY CARGO VEHICLE............      43       1,451      43       1,451  ......  ..........
        MEDIUM TACTICAL VEHICLE.....................      21       2,594      21       2,594  ......  ..........
        HIGH MOBILITY VEHICLE (MYP).................     100       5,165     100       5,165  ......  ..........
        TRUCK TRACTOR, OVER 5T......................      27       1,916      27       1,916  ......  ..........
        CAP VEHICLES................................  ......         746  ......         746  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       5,025  ......       5,025  ......  ..........
    SPECIAL PURPOSE VEHICLES:                                                                                   
        HMMWV, ARMORED..............................     125      24,181     125      24,181  ......  ..........
        TRACTOR, TOW, FLIGHTLINE....................     124       3,837     124       3,837  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       6,738  ......       6,738  ......  ..........
    FIRE FIGHTING EQUIPMENT:                                                                                    
        TRUCK CRASH P-19............................       7       2,048       7       2,048  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       3,652  ......       3,652  ......  ..........
    MATERIALS HANDLING EQUIPMENT:                                                                               
        TRUCK, F/L 10,000 LB........................      26       1,758      26       1,758  ......  ..........
        60K A/C LOADER..............................      60      83,143      60      83,143  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       2,148  ......       2,148  ......  ..........
    BASE MAINTENANCE SUPPORT:                                                                                   
        TRUCK, DUMP 5CY.............................      32       2,087      32       2,087  ......  ..........
        MODIFICATIONS...............................  ......         200  ......         200  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       3,833  ......       3,833  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, VEHICULAR EQUIPMENT................  ......     180,616  ......     180,616  ......  ..........
                                                     ===========================================================
ELECTRONICS AND TELECOMMUNICATIONS EQUIP:                                                                       
    COMM SECURITY EQUIPMENT (COMSEC):                                                                           
        COMSEC EQUIPMENT............................  ......      27,494  ......      27,494  ......  ..........
        MODIFICATIONS (COMSEC)......................  ......         476  ......         476  ......  ..........
    INTELLIGENCE PROGRAMS:                                                                                      
        INTELLIGENCE DATA HANDLING SYS..............  ......      20,739  ......      20,739  ......  ..........
        INTELLIGENCE TRAINING EQUIPMENT.............  ......       2,473  ......       2,473  ......  ..........
        INTELLIGENCE COMM EQUIP.....................  ......       7,644  ......       7,644  ......  ..........
    ELECTRONICS PROGRAMS:                                                                                       
        NATIONAL AIRSPACE SYSTEM....................  ......      16,615  ......      16,615  ......  ..........
        THEATER AIR CONTROL SYS IMPROVEMENT.........  ......      38,329  ......      38,329  ......  ..........
        WEATHER OBSERV/FORCAST......................  ......      18,013  ......      18,013  ......  ..........
        STRATEGIC COMMAND AND CONTROL...............  ......      20,505  ......      20,505  ......  ..........
        CHEYENNE MOUNTAIN COMPLEX...................  ......         737  ......         737  ......  ..........
        TAC SIGINT SUPPORT..........................  ......       4,114  ......       4,114  ......  ..........
    SPECIAL COMM--ELECTRONICS PROJECTS:                                                                         
        AUTOMATIC DATA PROCESSING EQUIP.............  ......      36,105  ......      36,105  ......  ..........
        AF GLOBAL COMMAND & CONTROL SYS.............  ......       7,319  ......       7,319  ......  ..........
        MOBILITY COMMAND AND CONTROL................  ......       6,728  ......       6,728  ......  ..........
        AIR FORCE PHYSICAL SECURITY SYSTEM..........  ......      15,112  ......      15,112  ......  ..........
        COMBAT TRAINING RANGES......................  ......      13,272  ......      13,272  ......  ..........
        MINIMUM ESSENTIAL EMERGENCY COMM  NET.......  ......       3,488  ......       3,488  ......  ..........
        FORCE PROTECTION/ANTI-TERRORISM.............  ......      54,439  ......      54,439  ......  ..........
        C\3\ COUNTERMEASURES........................  ......      14,904  ......      14,904  ......  ..........
        BASE LEVEL DATA AUTO PROGRAM................  ......      46,778  ......      55,678  ......      +8,900
        THEATER BATTLE MGT C\2\ SYS.................  ......      48,989  ......      48,989  ......  ..........
    AIR FORCE COMMUNICATIONS:                                                                                   
        INFORMATION TRANSMISSION SYSTEMS............  ......      10,889  ......      10,889  ......  ..........
        BASE INFORMATION INFRASTRUCTURE.............  ......      88,945  ......      88,945  ......  ..........
        USCENTCOM...................................  ......       4,031  ......       4,031  ......  ..........
        AUTOMATED TELECOMMUNICATIONS PRG............  ......      15,900  ......      15,900  ......  ..........
    DISA PROGRAMS:                                                                                              
        NAVSTAR GPS SPACE...........................  ......       3,129  ......       3,129  ......  ..........
        DEFENSE METEOROLOGICAL SAT PROG  SPAC.......  ......      11,898  ......      11,898  ......  ..........
        NUDET DETECTION SYS (NDS) SPACE.............  ......       7,995  ......       7,995  ......  ..........
        AF SATELLITE CONTROL NETWORK SPACE..........  ......      32,197  ......      32,197  ......  ..........
        EASTERN/WESTERN RANGE I&M SPACE.............  ......      81,957  ......      81,957  ......  ..........
        MILSATCOM SPACE.............................  ......      20,353  ......      20,353  ......  ..........
        SPACE MODS SPACE............................  ......      18,932  ......      18,932  ......  ..........
    ORGANIZATION AND BASE:                                                                                      
        TACTICAL C-E EQUIPMENT......................  ......      16,968  ......      54,968  ......     +38,000
        COMBAT SURVIVOR/EVADER LOCATER  RADIO.......  ......       5,731  ......       5,731  ......  ..........
        RADIO EQUIPMENT.............................  ......      12,844  ......      12,844  ......  ..........
        TV EQUIPMENT (AFRTV)........................  ......       2,112  ......       2,112  ......  ..........
        CCTV/AUDIOVISUAL EQUIPMENT..................  ......       3,969  ......       3,969  ......  ..........
        BASE COMM INFRASTRUCTURE....................  ......      30,874  ......      30,874  ......  ..........
        CAP COM & ELECT.............................  ......         387  ......         387  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       8,960  ......       8,960  ......  ..........
    MODIFICATIONS: COMM ELECT MODS..................  ......      53,260  ......      53,260  ......  ..........
                                                     -----------------------------------------------------------
      TOTAL, ELECTRONICS AND TELECOMMUNICATIONS                                                                 
       EQUIP........................................  ......     835,604  ......     882,504  ......     +46,900
                                                     ===========================================================
OTHER BASE MAINTENANCE AND SUPPORT EQUIP:                                                                       
    TEST EQUIPMENT:                                                                                             
        BASE/ALC CALIBRATION PACKAGE................  ......      10,468  ......      10,468  ......  ..........
        PRIMARY STANDARDS LABORATORY PACK-  AGE.....  ......       1,665  ......       1,665  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       9,627  ......       9,627  ......  ..........
    PERSONAL SAFETY AND RESCUE EQUIP:                                                                           
        NIGHT VISION GOGGLES........................  ......       2,371  ......       2,371  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       3,509  ......       3,509  ......  ..........
    DEPOT PLANT + MATERIALS HANDLING EQ:                                                                        
        MECHANIZED MATERIAL HANDLING EQUIP..........  ......      10,747  ......      10,747  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       3,980  ......       3,980  ......  ..........
    ELECTRICAL EQUIPMENT:                                                                                       
        GENERATORS--MOBILE ELECTRIC.................  ......       3,692  ......       3,692  ......  ..........
        FLOODLIGHTS SET TYPE NF2D...................  ......       7,696  ......       7,696  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       3,968  ......       3,968  ......  ..........
    BASE SUPPORT EQUIPMENT:                                                                                     
        BASE PROCURED EQUIPMENT.....................  ......       6,855  ......       6,855  ......  ..........
        MEDICAL/DENTAL EQUIPMENT....................  ......      13,295  ......      13,295  ......  ..........
        ENVIRONMENTAL PROJECTS......................  ......       1,000  ......       1,000  ......  ..........
        AIR BASE OPERABILITY........................  ......       4,214  ......       4,214  ......  ..........
        PALLET AIR CARGO............................  ......       1,189  ......       1,189  ......  ..........
        NET ASSEMBLY, 108 INCH X 88 INCH............  ......       2,998  ......       2,998  ......  ..........
        BLADDERS FUEL...............................  ......       2,749  ......       2,749  ......  ..........
        AERIAL BULK FUEL DELIVERY SYSTEM............  ......       2,097  ......       2,097  ......  ..........
        PHOTOGRAPHIC EQUIPMENT......................  ......       6,063  ......       6,063  ......  ..........
        PRODUCTIVITY INVESTMENTS....................  ......       5,980  ......      10,980  ......      +5,000
        MOBILITY EQUIPMENT..........................  ......      26,524  ......      26,524  ......  ..........
        DEPLOYMENT/EMPLOYMENT CONTAINERS............  ......       2,013  ......       2,013  ......  ..........
        AIR CONDITIONERS............................  ......       9,627  ......       9,627  ......  ..........
        ITEMS LESS THAN $2,000,000..................  ......       9,731  ......       9,731  ......  ..........
    SPECIAL SUPPORT PROJECTS:                                                                                   
        INTELLIGENCE PRODUCTION ACTIVITY............  ......      60,572  ......      49,272  ......     -11,300
        TECH SURV COUNTERMEASURES EQ................  ......       1,998  ......       1,998  ......  ..........
        DARP RC135..................................  ......      12,778  ......      12,778  ......  ..........
        DARP, MRIGS.................................  ......      66,279  ......      66,279  ......  ..........
        SELECTED ACTIVITIES.........................  ......   5,003,960  ......   5,080,160  ......     +76,200
        SPECIAL UPDATE PROGRAM......................  ......     174,830  ......     174,830  ......  ..........
        INDUSTRIAL PREPAREDNESS.....................  ......       1,243  ......       1,243  ......  ..........
        MODIFICATIONS...............................  ......         193  ......         193  ......  ..........
        FIRST DESTINATION TRANSPORTATION............  ......      15,351  ......      15,351  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, OTHER BASE MAINTENANCE AND SUPPORT                                                             
           EQUIP....................................  ......   5,489,262  ......   5,559,162  ......     +69,900
                                                     ===========================================================
SPARE AND REPAIR PARTS:                                                                                         
    SPARES AND REPAIR PARTS.........................  ......      55,771  ......      55,771  ......  ..........
    ECONOMIC ASSUMPTIONS............................  ......  ..........  ......     -25,000  ......     -25,000
                                                     ===========================================================
      TOTAL, OTHER PROCUREMENT, AIR FORCE...........  ......   6,561,253  ......   6,653,053  ......     +91,800
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

    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 Air Force to address budget 
shortfalls.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Base Level Data Auto Program....................................          46,778          55,678          +8,900
Productivity investments........................................           5,980          10,980          +5,000
----------------------------------------------------------------------------------------------------------------

    Supply asset tracking system.--The Committee recommends an 
addition of $5,000,000 for Air Force logistics productivity 
investments. These additional funds are for the initial 
implementation of the supply asset tracking systems. The 
prototype of this system has been tested very successfully, and 
will incorporate into the Air Force's logistics operations the 
automatic identification technology [AIT] practices and 
technologies currently being used very successfully in 
commercial and other departmental organizations. The Committee 
recommends the Air Force focus initial SATS implementation at 
key Air Combat Command bases where SATS will be able to 
demonstrate a near-term impact on readiness.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Tactical C-E equipment..........................................          16,968          54,968         +38,000
----------------------------------------------------------------------------------------------------------------

                       Procurement, Defense-Wide

Appropriations, 1997....................................  $1,978,005,000
Budget estimate, 1998...................................   1,695,085,000
Committee recommendation................................   1,753,285,000

    The Committee recommends an appropriation of $1,753,285,000 
for the ``Procurement, defense-wide'' account for fiscal year 
1998, an increase of $58,200,000 above the budget estimate. 
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, 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:                                                                                   
        MAJOR EQUIPMENT, OSD........................  ......     104,601  ......     104,601  ......  ..........
        MAJOR EQUIPMENT, WHS........................  ......      18,956  ......      18,956  ......  ..........
        ARMED FORCE INFORMATION SERVICE.............  ......       8,037  ......       8,037  ......  ..........
        DEPARTMENT OF DEFENSE EDUCATION ACTIVITY....  ......       1,609  ......       1,609  ......  ..........
        DEFENSE TECHNOLOGY SECURITY ADMINISTRATION..  ......         688  ......         688  ......  ..........
        DARP........................................  ......      97,452  ......      97,452  ......  ..........
    MAJOR EQUIPMENT, NSA: DEFENSE AIRBORNE                                                                      
     RECONNAISSANCE PROGRAM.........................  ......      14,380  ......      14,380  ......  ..........
    MAJOR EQUIPMENT, DSWA:                                                                                      
        VEHICLES....................................  ......         218  ......         218  ......  ..........
        OTHER MAJOR EQUIPMENT.......................  ......      17,199  ......      17,199  ......  ..........
    MAJOR EQUIPMENT, DISA:                                                                                      
        WWMCCS ADP SYSTEMS..........................  ......       3,748  ......       3,748  ......  ..........
        MOBILE SATELLITE SYSTEM TECHNOLOGIES........  ......       9,990  ......       9,990  ......  ..........
        INFORMATION SYSTEMS SECURITY................  ......      19,585  ......      19,585  ......  ..........
        CONTINUITY OF OPERATIONS....................  ......       4,637  ......       4,637  ......  ..........
        DEFENSE MESSAGE SYSTEM......................  ......      44,470  ......      44,470  ......  ..........
        GLOBAL COMBAT SUPPORT SYSTEM................  ......       5,889  ......       5,889  ......  ..........
        PLANS & PROGRAM ANALYSIS SUPPORT CENTER.....  ......       3,900  ......       3,900  ......  ..........
        ITEMS LESS THAN $2 MILLION..................  ......       7,461  ......      14,461  ......      +7,000
    MAJOR EQUIPMENT, DLA:                                                                                       
        DEFENSE SUPPORT ACTIVITIES..................  ......      21,814  ......      21,814  ......  ..........
        AUTOMATIC DOCUMENT CONVERSION SYS-  TEM.....  ......  ..........  ......      20,000  ......     +20,000
MAJOR EQUIPMENT, DMA:                                                                                           
    MAJOR EQUIPMENT, DIS:                                                                                       
        VEHICLES....................................     258       3,100     258       3,100  ......  ..........
        OTHER CAPITAL EQUIPMENT.....................  ......       1,837  ......       1,837  ......  ..........
    MAJOR EQUIPMENT, DCAA: ITEMS LESS THAN $2                                                                   
     MILLION........................................  ......       3,786  ......       3,786  ......  ..........
    MAJOR EQUIPMENT, DSPO: MAJOR EQUIPMENT, DSPO....  ......      19,334  ......      19,334  ......  ..........
    MAJOR EQUIPMENT, TJS: MAJOR EQUIPMENT, TJS......  ......      46,847  ......      36,847  ......     -10,000
    ON-SITE INSPECTION AGENCY: OTHER CAPITAL                                                                    
     EQUIPMENT......................................  ......         112  ......         112  ......  ..........
    BALLISTIC MISSILE DEFENSE ORGANIZATION:                                                                     
        DEFENSE COMMISSARY AGENCY, DECA: EQUIPMENT..  ......       1,970  ......       1,970  ......  ..........
                                                     -----------------------------------------------------------
            TOTAL, MAJOR EQUIPMENT..................  ......     461,620  ......     478,620  ......     +17,000
                                                     ===========================================================
SPECIAL OPERATIONS COMMAND:                                                                                     
    AVIATION PROGRAMS:                                                                                          
        SOF ROTARY WING UPGRADES....................  ......      36,042  ......      76,542  ......     +40,500
        SOF TRAINING SYSTEMS........................  ......       3,352  ......       3,352  ......  ..........
        MC-130H COMBAT TALON II.....................  ......      34,656  ......      34,656  ......  ..........
        AC-130U GUNSHIP ACQUISITION.................  ......      55,105  ......      55,105  ......  ..........
        C-130 MODIFICATIONS.........................  ......      96,592  ......      96,592  ......  ..........
        OH-6 PROCUREMENT & MODIFICATIONS............  ......       7,997  ......       7,997  ......  ..........
        AIRCRAFT SUPPORT............................  ......       3,041  ......       3,041  ......  ..........
    SHIPBUILDING:                                                                                               
        ADVANCED SEAL DELIVERY SYSTEM (ASDS)........  ......      38,800  ......      38,800  ......  ..........
        ADVANCED SEAL DELIVERY SYSTEM (ASDS) (AP-CY)  ......       2,465  ......       2,465  ......  ..........
        MK VIII MOD 1--SEAL DELIVERY VEHICLE........       3       2,229       3       2,229  ......  ..........
        SUBMARINE CONVERSION........................  ......      17,157  ......      17,157  ......  ..........
        MK V SPECIAL OPERATIONS CRAFT (MK V SOC)....       6      36,402       6      36,402  ......  ..........
    AMMUNITION PROGRAMS:                                                                                        
        SOF ORDNANCE ACQUISITION....................  ......      17,202  ......      17,202  ......  ..........
        SOF ORDNANCE REPLENISHMENT..................  ......      33,379  ......      33,379  ......  ..........
        REMOTE ACTIVATION MUNITION SYSTEMS..........  ......  ..........  ......       2,000  ......      +2,000
    OTHER PROCUREMENT PROGRAMS:                                                                                 
        MARITIME EQUIPMENT MODIFICATIONS............  ......       9,807  ......       9,807  ......  ..........
        NAVAL SPECIAL WARFARE RIGID INFLATABLE BOAT.  ......      18,121  ......      18,121  ......  ..........
        SPARES AND REPAIR PARTS.....................  ......      42,538  ......      42,538  ......  ..........
        COMM EQUIPMENT & ELECTRONICS................  ......      57,406  ......      57,406  ......  ..........
        SOF INTELLIGENCE SYSTEMS....................  ......      21,175  ......      23,175  ......      +2,000
        SOF SMALL ARMS & WEAPONS....................  ......      10,269  ......      12,669  ......      +2,400
        SOF MARITIME EQUIPMENT......................  ......         598  ......         598  ......  ..........
        SOLDIER ENHANCEMENT PROGRAM.................  ......  ..........  ......       2,300  ......      +2,300
        MISCELLANEOUS EQUIPMENT.....................  ......       5,646  ......       5,646  ......  ..........
        SOF PLANNING AND REHEARSAL SYSTEM (SOFPARS).  ......         568  ......         568  ......  ..........
        CLASSIFIED PROGRAMS.........................  ......     108,339  ......     108,339  ......  ..........
        PSYOP EQUIPMENT.............................  ......      10,280  ......      10,280  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, SPECIAL OPERATIONS COMMAND.........  ......     669,166  ......     718,366  ......     +49,200
                                                     ===========================================================
CHEMICAL/BIOLOGICAL DEFENSE:                                                                                    
    CBDP:                                                                                                       
        INDIVIDUAL PROTECTION.......................  ......      64,855  ......      64,855  ......  ..........
        DECONTAMINATION.............................  ......          24  ......          24  ......  ..........
        JOINT BIO DEFENSE PROGRAM...................  ......      65,432  ......      65,432  ......  ..........
        COLLECTIVE PROTECTION.......................  ......      17,316  ......      17,316  ......  ..........
        CONTAMINATION AVOIDANCE.....................  ......      62,383  ......      62,383  ......  ..........
                                                     -----------------------------------------------------------
          TOTAL, CHEMICAL/BIOLOGICAL DEFENSE........  ......     210,050  ......     210,050  ......  ..........
                                                     ===========================================================
DEFENSE-WIDE: CLASSIFIED PROGRAMS...................  ......     354,289  ......     358,289  ......      +4,000
                                                     -----------------------------------------------------------
      TOTAL, DEFENSE-WIDE...........................  ......     354,289  ......     358,289  ......      +4,000
                                                     ===========================================================
ECONOMIC ASSUMPTIONS................................  ......  ..........  ......     -12,000  ......     -12,000
                                                     ===========================================================
      TOTAL, PROCUREMENT, DEFENSE-WIDE..............  ......   1,695,085  ......   1,753,285  ......     +58,200
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

    Defense Information Systems Agency (items less than 
$2,000,000).--The budget request includes $7,461,000 for 
various equipment purchases for the Defense Information Systems 
Agency [DISA]. The Committee recommends providing $14,461,000, 
an increase of $7,000,000 above the budget request.
    During the budget formulation process, an error was made by 
the Department whereby $7,000,000 was budgeted within DISA's 
operation and maintenance budget for the procurement of 
equipment for the White House Communications Agency [WHCA] 
which, because of threshold limitations, should have been 
included within the ``Procurement'' account. The Committee, at 
the request of the Department, recommends providing an 
additional $7,000,000 in procurement authority for WHCA 
requirements and has made a corresponding reduction in DISA's 
operation and maintenance budget request.
    Automatic document conversion system [ADCS].--The budget 
request did not contain any funds for ADCS. The Committee 
recognizes and supports the efforts by the Department to 
digitize all weapons system data bases. Therefore, the 
Committee recommends $20,000,000 for the continued purchase of 
ADCS hardware and software.
    Major equipment, the joint staff.--The budget request 
includes $46,847,000 for the joint staff command, control, and 
communications requirements. The Committee recommends a 
decrease of $10,000,000 due to excessive program growth.
    Secure telephone equipment.--In fiscal year 1997, the 
defense appropriations conferees earmarked $17,000,000 for 
secure telephone equipment within the ``Procurement, defense-
wide'' account. The Department of Defense has not released this 
funding. The Committee directs the Department of Defense to 
provide $17,000,000 for secure telephone equipment from the 
``Procurement, defense-wide'' account in fiscal year 1998.

                       Special Operations Forces

    Soldier enhancement program.--The Committee recommends 
providing $2,300,000 for the second and final increment of 
funds to procure advanced individual body armor for all Special 
Operations Forces [SOF]. A letter from the commander in chief, 
U.S. Special Operations Command [USSOCOM], dated March 14, 
1997, stated that 3,804 SOF personnel do not have individual 
body armor and that the $1,500,000 provided by Congress in 
fiscal year 1997 will go a long way toward meeting SOF's body 
armor requirements.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
SOF rotary wing upgrades........................................          36,042          76,542         +40,500
Remote activation munition systems..............................  ..............           2,000          +2,000
SOF intelligence systems........................................          21,175          23,175          +2,000
SOF small arms and weapons......................................          10,269          12,669          +2,400
----------------------------------------------------------------------------------------------------------------

                  National Guard and Reserve Equipment

Appropriations, 1997....................................    $780,000,000
Budget estimate, 1998...................................................
Committee recommendation................................     653,000,000

    The Committee recommends a funding level of $653,000,000 
for National Guard and Reserve dedicated equipment. This 
recommendation is $653,000,000 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...........  ......  ..........  ......      65,000  ......     +65,000
    NAVY RESERVE:                                                                                               
        MISCELLANEOUS EQUIPMENT.....................  ......  ..........  ......      40,000  ......     +40,000
        C-9 REPLACEMENT AIRCRAFT....................  ......  ..........       1      40,000      +1     +40,000
    MARINE CORPS RESERVE: MISCELLANEOUS EQUIPMENT...  ......  ..........  ......      40,000  ......     +40,000
    AIR FORCE RESERVE:                                                                                          
        MISCELLANEOUS EQUIPMENT.....................  ......  ..........  ......      40,000  ......     +40,000
        WC-130 SPARES/SUPPORT EQUIPMENT.............  ......  ..........  ......      29,700  ......     +29,700
                                                     -----------------------------------------------------------
          TOTAL, RESERVE EQUIPMENT..................  ......  ..........  ......     254,700  ......    +254,700
NATIONAL GUARD EQUIPMENT:                                                                                       
    ARMY NATIONAL GUARD: MISCELLANEOUS EQUIPMENT....  ......  ..........  ......     140,000  ......    +140,000
    AIR NATIONAL GUARD:                                                                                         
        MISCELLANEOUS EQUIPMENT.....................  ......  ..........  ......      40,000  ......     +40,000
        C-130J......................................  ......  ..........       2      95,800      +2     +95,800
        EC-130......................................  ......  ..........       1      70,500      +1     +70,500
        KC-135R RE-ENGINING UPGRADES................  ......  ..........       2      52,000      +2     +52,000
                                                     -----------------------------------------------------------
          TOTAL, NATIONAL GUARD EQUIPMENT...........  ......  ..........  ......     398,300  ......    +398,300
                                                     ===========================================================
          TOTAL, NATIONAL GUARD & RESERVE EQUIPMENT.  ......  ..........  ......     653,000  ......    +653,000
----------------------------------------------------------------------------------------------------------------

                   committee recommended adjustments

                              army reserve

    Miscellaneous equipment.--The Committee recommends 
$65,000,000 for the procurement of unspecified miscellaneous 
equipment to improve the readiness ratings of Army Reserve 
units.

                              navy reserve

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

                          marine corps reserve

    Miscellaneous equipment.--The Committee recommends 
$40,000,000 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 
$40,000,000 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 
$140,000,000 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 $206,300,000 for National Guard 
and Reserve aircraft. Of the recommended funds, $95,800,000 is 
provided for two C-130J aircraft, $70,500,000 is provided for 
one EC-130 aircraft, and $52,000,000 for two KC-135R reengining 
upgrades for the Air Guard. In addition, the Committee has 
provided $29,700,000 for WC-130 spares/support equipment for 
the Air Force Reserve.
    The Committee has also provided $65,000,000 for the ``Army 
Reserve miscellaneous equipment'' account. The Committee 
understands that the Army is inadequately equipped to meet its 
medium cargo helicopter requirement. The Committee expects the 
Army to consider this in allocating the recommended funds as 
well as in future budget submissions.

                       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: Air defense alerting device [ADAD], A-2 Bradley 
upgrades, ALR-56 radar warning receiver, AN/TQM-41 MMS, 
Avenger, theater deployable communication package, Dragon 
missile upgrade, multiple launch rocket system [MLRS], magic 
lantern spares, small arms simulators, senior scout 
modifications, field artillery ammunition support vehicles 
[FAASVS], KC-135 reengining, night vision devices and driver's 
night viewers, heavy equipment transport system [HETS], 
Paladin, M-1A2 tanks, CH-47 FADEC, CH-53E helicopters, CH-47D 
helicopters, medium truck extended service programs [ESP], 
onboard oxygen generating system field evaluation for the Air 
National Guard, M-270 launcher mechanical system [ILMS], high 
mobility multipurpose wheeled vehicles, LITENING targeting pod 
system.
                                TITLE IV

              RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

                      Summary of Committee Action

    The fiscal year 1998 Department of Defense budget request 
for research, development, test, and evaluation [RDT&E] totaled 
$35,934,491,000. Title IV of the accompanying Senate bill 
contains $36,551,058,000, an increase of $616,567,000 or 1.7 
percent, to the budget estimate. The recommended allowance is 
$890,063,000 below the fiscal year 1997 appropriation for RDT&E 
in title IV. The following table summarizes the budget 
estimates and Committee recommendations:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Research, development, test, and evaluation:                                                                    
    Army........................................................       4,510,843       4,984,083        +473,240
    Navy........................................................       7,611,022       7,532,846         -78,176
    Air Force...................................................      14,451,379      14,142,873        -308,506
    Defense-wide................................................       9,069,680       9,608,689        +539,009
Director of Test and Evaluation.................................         268,183         251,183         -17,000
Director of Operational Test and Evaluation.....................          23,384          31,384          +8,000
                                                                 -----------------------------------------------
      Total, title IV, RDT&E....................................      35,934,491      36,551,058        +616,567
----------------------------------------------------------------------------------------------------------------

                       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.

           Research, Development, Test, and Evaluation, Army

Appropriations, 1997....................................  $5,062,763,000
Budget estimate, 1998...................................   4,510,843,000
Committee recommendation................................   4,984,083,000

    The Committee recommends an appropriation of $4,984,083,000 
for the Army's research, development, test, and evaluation 
programs, an increase of $473,240,000 to the budget request. 
The budget activities and programs funded under this 
appropriation are discussed below.

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Military engineering advanced technology.--The Committee 
directs that $4,500,000 of the funds provided in this program 
element shall be available only to continue testing and 
development efforts on the advanced light antiarmor weapons 
system [ALAWS].
    Landmine warfare and barrier advanced technology; landmine 
warfare/barrier--engineering development.--The Committee 
recommendation deletes $13,873,000 from the budget request for 
landmine warfare/barrier--engineering development. The 
recommendation deletes the funds requested for the airborne 
standoff minefield detection system [ASTAMIDS]. Based on 
technical difficulties, ASTAMIDS is not prepared to go into 
engineering and manufacturing development [EMD].
    The Committee has added $7,000,000 within the landmine 
warfare and barrier advanced technology program element to 
continue development of an airborne mine detection capability. 
The Committee restates its belief that promising alternative 
technologies, such as hyperspectral sensors, should be 
evaluated by the Army in defining a cost-effective approach to 
airborne mine detection.
    Light tactical wheeled vehicles.--The Committee directs 
that the Army conduct an evaluation of the gator medicus 
vehicle and its potential to meet future light vehicle 
requirements. The gator may be well suited to the Air Force 
MEEP program requirement. The Army should work jointly with the 
other services in evaluating the gator's capability and cost 
advantage.
    Environmental quality technology.--The Committee recommends 
$58,419,000, an increase of $40,900,000 to the budget request. 
The Committee directs that $5,400,000 of the additional funds 
shall be used only to continue ongoing efforts with an 
established small business development center to be 
administered as in previous years. The existing program focuses 
on developing agricultural-industrial products of interest to 
defense and civilian consumers. Additionally, the Committee 
provides an increase of $4,000,000 only for the continuation of 
the joint effort of the Army Environmental Center and the 
Department of Agriculture to demonstrate the efficacy and cost 
effectiveness of agriculturally based bioremediation to restore 
contaminated military and civilian sites in fragile and 
geographically isolated Pacific island ecosystems.
    Mustard gas research.--The Committee encourages the 
Department to establish a public/private research initiative to 
investigate the possibility of veterans' exposure to mustard 
gas and the effects of mustard gas. The Committee provides 
$1,000,000 only for this purpose.
    Neurofibromatosis.--The Committee endorses the Army's 
successful ongoing neurofibromatosis research effort and urges 
the Army to support this important project in 1998.
    Prostate imaging technology.--The Committee is concerned 
about the quality and efficacy of prostate diagnostic imaging, 
and believes prostate cancer detection and treatment would 
greatly benefit from more accurate and refined equipment and 
procedures. The Committee directs the Department to establish a 
public/private research project in coordination with 
appropriate Government agencies and private institutions to 
explore promising technologies for improvement of prostate 
diagnostic imaging. The Committee provides $5,000,000 only for 
this purpose in the Medical Advanced Technology Program 
element.
    Management headquarters (research and development).--The 
Committee allocates $31,337,000, increasing the budget request 
by $26,500,000. The Committee directs that the added funds 
shall be made available only to continue the Akamai project 
under the jurisdiction of the Tripler Army Medical Center. The 
Committee directs that of this amount $2,700,000 shall be made 
available to continue to investigate new technologies including 
dual mode hyperspectral fluorescence imaging. The Committee 
further directs that up to $10,000,000 may be used to support 
operational modeling of theater medical information 
infrastructure for forward deployed forces in Alaska and Korea.
    Consolidation of overseas medical research facilities.--The 
Committee is concerned about the numerous overseas medical 
research facilities operated by the Department. While the 
Committee believes medical research in overseas theaters is 
needed and can yield significant results, it questions the 
duplication of programs and facilities in this effort. The 
Committee directs the Department to examine this issue and 
submit a report by April 30, 1998, to the congressional defense 
committees as to the cost savings potential and mission impact 
of consolidation of the Department's overseas medical research 
facilities.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Defense research sciences.......................................         138,165         136,798          -1,367
    Scientific problems with military applications..............  ..............          -4,867          -4,867
    Defense information warfare initiative \1\..................  ..............          +3,500          +3,500
EW development..................................................          66,212          67,712          +1,500
    Suite of integrated infrared countermeasures................  ..............          -6,000          -6,000
    ATIRCM \1\..................................................  ..............          +7,500          +7,500
Light tactical wheeled vehicles.................................           9,909  ..............          -9,909
Engineer mobility equipment development.........................          56,196          50,196          -6,000
    Breacher late obligation and system manage-  ment...........  ..............          -6,000          -6,000
Brilliant antiarmor submunition [BAT]...........................         202,302         187,302         -15,000
    BAT P\3\I...................................................  ..............         -15,000         -15,000
Landmine warfare/barrier--eng dev...............................          22,605           8,732         -13,873
    Airborne standoff minefield detection system................  ..............         -13,873         -13,873
Digitization....................................................         156,960         120,043         -36,917
    Force XXI initiatives.......................................  ..............         -36,917        -36,917 
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project funding increases''    
  heading of this report section.                                                                               

    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]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Aviation technology.............................................          27,282          25,982          -1,300
    Budget correction...........................................  ..............          -1,300          -1,300
Weapons and munitions technology................................          26,980          30,876          +3,896
    Budget correction...........................................  ..............          -1,104          -1,104
    Plastic-cased ammunition \1\................................  ..............          +5,000          +5,000
Armament enhancement initiative.................................          40,313          33,313          -7,000
    Smart top attack............................................  ..............         -17,000         -17,000
    X-rod/term K-E antitank round \1\...........................  ..............         +10,000         +10,000
Artillery systems--demonstration/validation.....................         324,380         301,321         -23,059
    Management Reserve..........................................  ..............         -23,059         -23,059
Army Kwajalein Atoll............................................         138,769         124,769         -14,000
SATCOM ground environment (space)...............................          57,827          56,227          -1,600
    SMART-T polar modification..................................  ..............          -1,600          -1,600
----------------------------------------------------------------------------------------------------------------
\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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Sensors and electronic survivability............................          19,294          21,794          +2,500
    Projectile detection and cueing [PDCue] development and                                                     
     evaluation.................................................  ..............          +2,500          +2,500
EW technology...................................................          16,528          19,528          +3,000
    Shortstop electronic protection system [SEPS]...............  ..............          +3,000          +3,000
Missile technology..............................................          22,335          26,335          +4,000
    Solid-state dye lasers......................................  ..............          +4,000          +4,000
Aviation advanced technology....................................          31,330          34,330          +3,000
    STARSTREAK..................................................  ..............          +3,000          +3,000
Combat vehicle and automotive technology........................          33,112          58,112         +25,000
    National Automotive Center \1\..............................  ..............          +4,000          +4,000
    Joint Robotic Development Program on Ground Vehicle                                                         
     Survivability..............................................  ..............          +6,000          +6,000
    Air defense alerting device [ADAD] integration on the                                                       
     Bradley Stinger fighting vehicle...........................  ..............          +5,000          +5,000
    High-output diesel engine testing...........................  ..............          +1,000          +1,000
    HMMWV 6.2L engine rebuild program...........................  ..............          +4,000          +4,000
    Alternative vehicle propulsion systems program..............  ..............          +5,000          +5,000
Environmental quality technology................................          17,519          58,419         +40,900
    Radford Environmental Development and Management Program \1\  ..............          +6,000          +6,000
    Plasma energy pyrolysis system \1\..........................  ..............          +8,700          +8,700
    Environmental compliance projects at the WETO facility......  ..............          +8,800          +8,800
    Small Business Development Program..........................  ..............          +5,400          +5,400
    Agriculturally based bioremediation in Pacific Island                                                       
     ecosystems.................................................  ..............          +4,000          +4,000
    Bioremediation Education Science and Technology Center......  ..............          +4,000          +4,000
    Resource Recovery Technology Center.........................  ..............          +4,000          +4,000
Military engineering technology.................................          36,422          47,422         +11,000
    Cold Regions Research and Engineering Labora-  tory.........  ..............          +1,000          +1,000
    Center for Geosciences Atmospheric Research.................  ..............         +10,000         +10,000
Medical advanced technology.....................................          10,677         196,277        +185,600
    Intravenous membrane oxygenator technology \1\..............  ..............          +1,000          +1,000
    MRE nutrition research \1\..................................  ..............          +3,600          +3,600
    Mustard gas research........................................  ..............          +1,000          +1,000
    Breast cancer...............................................  ..............        +175,000        +175,000
    Prostate diagnostic imaging.................................  ..............          +5,000          +5,000
Joint Service Small Arms Program................................           4,786           7,786          +3,000
    Objective crew-served weapon................................  ..............          +3,000          +3,000
Electronics and electronic devices..............................          20,192          26,042          +5,850
    Rechargeable coin cells.....................................  ..............            +500            +500
    AA zinc air battery.........................................  ..............          +1,500          +1,500
    Advanced nonmetallic rechargeable battery system............  ..............            +600            +600
    Low-cost reuseable alkaline manganese zinc..................  ..............          +1,000          +1,000
    Enzyme-based chemical and biological agent detection                                                        
     technology.................................................  ..............          +2,250          +2,250
Human factors engineering technology............................          14,256          19,356          +5,100
    Emergency medical teams coordination [MEDTEAMS].............  ..............          +5,100          +5,100
Weapons and munitions advanced technology.......................          18,255          30,255         +12,000
    Precision-guided mortar munition program....................  ..............          +4,000          +4,000
    Trajectory correctable munitions............................  ..............          +8,000          +8,000
Joint Service Small Arms Program................................           4,754           7,754          +3,000
    Objective individual combat weapon..........................  ..............          +3,000          +3,000
Military engineering advanced technology........................          12,231          24,331         +12,100
    Rapidly installed breakwater technology.....................  ..............          +2,000          +2,000
    Civil engineer assistance to forward deployed engineer                                                      
     forces.....................................................  ..............          +2,000          +2,000
    Combat engineering systems logistics over the shore.........  ..............          +8,100          +8,100
Aviation advanced development...................................           7,132          12,132          +5,000
    Virtual retinal display.....................................  ..............          +5,000          +5,000
Air traffic control.............................................           1,705           4,705          +3,000
    ATNAVICS....................................................  ..............          +3,000          +3,000
Advanced command and control vehicle [AC\2\V]...................           8,867          11,867          +3,000
    AC\2\V Test Program sets....................................  ..............          +3,000          +3,000
Nonsystem training devices......................................          76,749          81,749          +5,000
    Battle lab reconfigurable simulator initiative..............  ..............          +5,000          +5,000
Air defense command, control, and intelligence--eng dev.........          18,350          22,350          +4,000
    Forward area air defense system/ground-based sensor                                                         
     [Sentinel].................................................  ..............          +4,000          +4,000
Weapons and munitions--eng dev..................................           3,577           5,077          +1,500
    Mk 19 grenade launcher dev..................................  ..............          +1,500          +1,500
Threat simulator development....................................          14,004          18,004          +4,000
    Distributed compatible interactive simulation radar [DCRS]..  ..............          +4,000          +4,000
Environmental compliance........................................          51,378          58,378          +7,000
    Fuel cell technology development............................  ..............          +5,000          +5,000
    Low emissions natural gas boiler demonstration..............  ..............          +2,000          +2,000
Maintenance and repair [RPM] RDT&E..............................          85,119          86,419          +1,300
    Cold Regions Research Lab maintenance/repair................  ..............          +1,300          +1,300
Management headquarters.........................................           4,837          31,337         +26,500
    Akamai......................................................  ..............         +26,500         +26,500
MLRS Product Improvement Program................................          26,678          40,378         +13,700
    Guided MLRS.................................................  ..............          +8,100          +8,100
    MLRS improved launcher mechanical system  [ILMS]............  ..............          +5,600          +5,600
Aerostat Joint Project Office...................................          86,193          96,193         +10,000
    Aerostat development........................................  ..............         +10,000         +10,000
Combat vehicle improvement programs.............................         136,520         176,720         +40,200
    Abrams SEP \1\..............................................  ..............          +8,000          +8,000
    Field emission display [FED] flat panel displays for M-1                                                    
     Abrams tank \1\............................................  ..............         +12,000         +12,000
    Air defense alerting device integration on Bradley Stinger                                                  
     fighting vehicle...........................................  ..............          +4,000          +4,000
    AN/VVR-1 laser warning receiver development.................  ..............          +4,000          +4,000
    M-7 Bradley fire support team [BFIST] Vehicle Test Program                                                  
     sets.......................................................  ..............          +3,000          +3,000
    Bradley A3 Test Program sets................................  ..............          +3,500          +3,500
    Heavy recovery vehicle traction control system..............  ..............          +5,700          +5,700
End item industrial preparedness activities.....................          44,326          57,326         +13,000
    Totally integrated munitions enterprise.....................  ..............          +5,000          +5,000
    Instrumented Factory for Gears Program [INFAC]..............  ..............          +4,000          +4,000
    Electronic Circuit Board Manufacturing Development Center...  ..............          +4,000          +4,000
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Authorization adjustments'' heading of this
  report section.                                                                                               

    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 1998:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                 1998 budget      Committee         budget    
                                                                    estimate      recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
University and industry research centers.......................          45,576          52,876           +7,300
    Army federated labs........................................  ..............          +2,300           +2,300
    Hypervelocity physics project \1\..........................  ..............          +1,000           +1,000
    Electric rail gun..........................................  ..............          +4,000           +4,000
Materials technology...........................................           9,811          13,811           +4,000
    Advanced composite shrouds.................................  ..............          +4,000           +4,000
Combat vehicle and automotive advanced technology..............          32,685          35,285           +2,600
    Aluminum metal matrix composites...........................  ..............          +9,000           +9,000
    Commercial derivative engine for palletized loading system                                                  
     \1\.......................................................  ..............          +3,600           +3,600
    Program adjustment \2\.....................................  ..............         -10,000          -10,000
Command, control, and communications advanced technology.......          19,688          28,688           +9,000
    Wave Net Program...........................................  ..............          +4,000           +4,000
    Army Data Analysis Center \1\..............................  ..............          +5,000           +5,000
Tractor Rose...................................................           9,204          11,204           +2,000
Missile and rocket advanced technology.........................         117,139         120,139           +3,000
    Future Missile Technology Integration Program..............  ..............          +3,000           +3,000
Landmine warfare and barrier advanced technology...............          19,332          32,932          +13,600
    Standoff ground penetrating radar development..............  ..............          +3,900           +3,900
    Vehicle-mounted mine detection.............................  ..............          +2,700           +2,700
    Airborne standoff minefield detection system \1\...........  ..............          +7,000           +7,000
Army missile defense systems integration (demonstration/                                                        
 validation)...................................................          24,138          87,638          +63,500
    Tactical High-Energy Laser Program.........................  ..............         +41,500          +41,500
    Battle Integration Center..................................  ..............         (27,000)         +22,000
All source analysis system.....................................          24,045          27,245           +3,200
    All Source Analysis Program................................  ..............          +3,200           +3,200
DOD high-energy laser test facility............................          14,952          29,952          +15,000
    THEL range support.........................................  ..............         +10,000          +10,000
    Solid state laser \1\......................................  ..............          +5,000           +5,000
Programwide activities.........................................          86,208          82,208           -4,000
International cooperative research and development.............           1,581  ...............          -1,581
Aircraft Modifications/Product Improvement Program.............           2,609          32,609          +30,000
    Improved cargo helicopter..................................  ..............         +30,000          +30,000
Missile/Air Defense Product Improvement Program................          17,412          31,412          +14,000
    Patriot anticruise missile upgrade.........................  ..............         +10,000          +10,000
    Stinger target acquisition sensor study and pre-EMD efforts                                                 
     \1\.......................................................  ..............          +4,000           +4,000
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project funding increases''    
  heading of this report section.                                                                               
\2\ Program reductions 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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
        RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, ARMY                                                       
                                                                                                                
BASIC RESEARCH:                                                   ..............                                
    IN-HOUSE LABORATORY INDEPENDENT RESEARCH....................          15,113          15,113  ..............
    DEFENSE RESEARCH SCIENCES...................................         138,165         136,798          -1,367
    UNIVERSITY AND INDUSTRY RESEARCH CENTERS....................          45,576          52,876          +7,300
                                                                 -----------------------------------------------
      TOTAL, BASIC RESEARCH.....................................         198,854         204,787          +5,933
                                                                 ===============================================
EXPLORATORY DEVELOPMENT:                                                                                        
    MATERIALS TECHNOLOGY........................................           9,811          13,811          +4,000
    SENSORS AND ELECTRONIC SURVIVABILITY........................          19,294          21,794          +2,500
    TRACTOR HIP.................................................           7,242           7,242  ..............
    AVIATION TECHNOLOGY.........................................          27,282          25,982          -1,300
    EW TECHNOLOGY...............................................          16,528          19,528          +3,000
    MISSILE TECHNOLOGY..........................................          22,335          26,335          +4,000
    MODELING AND SIMULATION TECHNOLOGY..........................          21,059          21,059  ..............
    COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY....................          33,112          58,112         +25,000
    BALLISTICS TECHNOLOGY.......................................          33,317          33,317  ..............
    CHEMICAL, SMOKE AND EQUIPMENT DEFEATING TECHNOLOGY..........           4,739           4,739  ..............
    JOINT SERVICE SMALL ARMS PROGRAM............................           4,786           7,786          +3,000
    WEAPONS AND MUNITIONS TECHNOLOGY............................          26,980          30,876          +3,896
    ELECTRONICS AND ELECTRONIC DEVICES..........................          20,192          26,042          +5,850
    NIGHT VISION TECHNOLOGY.....................................          17,304          17,304  ..............
    COUNTERMINE SYSTEMS.........................................          10,598          10,598  ..............
    HUMAN FACTORS ENGINEERING TECHNOLOGY........................          14,256          19,356          +5,100
    ENVIRONMENTAL QUALITY TECHNOLOGY............................          17,519          58,419         +40,900
    COMMAND, CONTROL, COMMUNICATIONS TECHNOLOGY.................          16,838          16,838  ..............
    COMPUTER AND SOFTWARE TECHNOLOGY............................             679             679  ..............
    MILITARY ENGINEERING TECHNOLOGY.............................          36,422          47,422         +11,000
    MANPOWER/PERSONNEL/TRAINING TECHNOLOGY......................           9,014           9,014  ..............
    LOGISTICS TECHNOLOGY........................................          17,689          17,689  ..............
    MEDICAL TECHNOLOGY..........................................          74,684          74,684  ..............
    ARMY ARTIFICIAL INTELLIGENCE TECHNOLOGY.....................           1,255           1,255  ..............
                                                                 -----------------------------------------------
      TOTAL, EXPLORATORY DEVELOPMENT............................         462,935         569,881        +106,946
                                                                 ===============================================
ADVANCED DEVELOPMENT:                                                                                           
    LOGISTICS ADVANCED TECHNOLOGY...............................          35,469          35,469  ..............
    MEDICAL ADVANCED TECHNOLOGY.................................          10,677         196,277        +185,600
    AVIATION ADVANCED TECHNOLOGY................................          31,330          34,330          +3,000
    WEAPONS AND MUNITIONS ADVANCED TECHNOL-  OGY................          18,255          30,255         +12,000
    COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHNOLOGY...........          32,685          35,285          +2,600
    COMMAND, CONTROL, COMMUNICATIONS ADVANCED TECHNOLOGY........          19,688          28,688          +9,000
    MANPOWER, PERSONNEL AND TRAINING ADVANCED TECHNOLOGY........           3,003           3,003  ..............
    TRACTOR HIKE................................................          14,350          14,350  ..............
    TRACTOR DIRT................................................           3,393           3,393  ..............
    TRACTOR RED.................................................           5,572           5,572  ..............
    TRACTOR ROSE................................................           9,204          11,204          +2,000
    MILITARY HIV RESEARCH.......................................           2,713           2,713  ..............
    GLOBAL SURVEILLANCE/AIR DEFENSE/PRECISION STRIKE TECHN......          11,664          11,664  ..............
    EW TECHNOLOGY...............................................           8,182           8,182  ..............
    MISSILE AND ROCKET ADVANCED TECHNOLOGY......................         117,139         120,139          +3,000
    TRACTOR CAGE................................................           6,412           6,412  ..............
    LANDMINE WARFARE AND BARRIER ADVANCED TECHNOLOGY............          19,332          32,932         +13,600
    JOINT SERVICE SMALL ARMS PROGRAM............................           4,754           7,754          +3,000
    LINE-OF-SIGHT TECHNOLOGY DEMONSTRATION......................          13,000          13,000  ..............
    NIGHT VISION ADVANCED TECHNOLOGY............................          19,299          19,299  ..............
    MILITARY ENGINEERING ADVANCED TECHNOLOGY....................          12,231          24,331         +12,100
    ADVANCED TACTICAL COMPUTER SCIENCE AND SENSOR TECH..........          19,970          19,970  ..............
                                                                 -----------------------------------------------
        TOTAL, ADVANCED DEVELOPMENT.............................         418,322         664,222        +245,900
                                                                 ===============================================
DEMONSTRATION & VALIDATION:                                                                                     
    ARMY MISSILE DEFENSE SYSTEMS INTEGRATION (DEM/VAL)..........          24,138          87,638         +63,500
    LANDMINE WARFARE AND BARRIER--ADV DEV.......................          18,882          18,882  ..............
    ARMAMENT ENHANCEMENT INITIATIVE.............................          40,313          33,313          -7,000
    ARTILLERY PROPELLANT DEVELOPMENT............................           8,521           8,521  ..............
    ARMORED SYSTEM MODERNIZATION--ADV DEV.......................           2,007           2,007  ..............
    ADVANCED TANK ARMAMENT SYSTEM (ATAS)........................           8,982           8,982  ..............
    ARMY DATA DISTRIBUTION SYSTEM...............................          21,214          21,214  ..............
    SOLDIER SUPPORT AND SURVIVABILITY...........................           7,557           7,557  ..............
    TACTICAL ELECTRONIC SURVEILLANCE SYSTEM--ADV DEV............          20,920          20,920  ..............
    NIGHT VISION SYSTEMS ADVANCED DEVELOPMENT...................           2,939           2,939  ..............
    NATO RESEARCH AND DEVELOPMENT...............................          13,168          13,168  ..............
    AVIATION--ADV DEV...........................................           7,132          12,132          +5,000
    LOGISTICS AND ENGINEER EQUIPMENT--ADV DEV...................           6,783           6,783  ..............
    COMBAT SERVICE SUPPORT CONTROL SYSTEM EVALUATION AND A......           7,673           7,673  ..............
    MEDICAL SYSTEMS--ADV DEV....................................           6,765           6,765  ..............
    TRACTOR CAGE (DEM/VAL)......................................           1,948           1,948  ..............
    ARTILLERY SYSTEMS--DEM/VAL..................................         324,380         301,321         -23,059
    SCAMP BLOCK II DEM/VAL......................................              73              73  ..............
                                                                 -----------------------------------------------
      TOTAL, DEMONSTRATION & VALIDATION.........................         523,395         561,836         +38,441
                                                                 ===============================================
ENGINEERING & MANUFACTURING DEVEL:                                                                              
    AIRCRAFT AVIONICS...........................................          21,669          21,669  ..............
    COMANCHE....................................................         282,009         282,009  ..............
    EW DEVELOPMENT..............................................          66,212          67,712          +1,500
    ALL SOURCE ANALYSIS SYSTEM..................................          24,045          27,245          +3,200
    FOLLOW-ON TO TOW............................................          13,949          13,949  ..............
    TRACTOR CAGE................................................              11              11  ..............
    MEDIUM TACTICAL VEHICLES....................................           3,729           3,729  ..............
    JAVELIN.....................................................           8,018           8,018  ..............
    LANDMINE WARFARE............................................          19,800          19,800  ..............
    AIR TRAFFIC CONTROL.........................................           1,705           4,705          +3,000
    ADVANCED COMMAND AND CONTROL VEHICLE (AC2V).................           8,867          11,867          +3,000
    TACTICAL UNMANNED GROUND VEHICLE (TUGV).....................           2,687           2,687  ..............
    LIGHT TACTICAL WHEELED VEHICLES.............................           9,909  ..............          -9,909
    ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....................          56,196          50,196          -6,000
    NIGHT VISION SYSTEMS--ENG DEV...............................          33,456          33,456  ..............
    COMBAT FEEDING, CLOTHING, AND EQUIPMENT.....................          55,964          55,964  ..............
    NON-SYSTEM TRAINING DEVICES--ENG DEV........................          76,749          81,749          +5,000
    TERRAIN INFORMATION--ENG DEV................................           2,942           2,942  ..............
    INTEGRATED METEOROLOGICAL SUPPORT SYSTEM....................           1,946           1,946  ..............
    INTEGRATED BROADCAST SERVICE................................           4,499           4,499  ..............
    AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE--ENG DE.......          18,350          22,350          +4,000
    AUTOMATIC TEST EQUIPMENT DEVELOPMENT........................           2,582           2,582  ..............
    DISTRIBUTIVE INTERACTIVE SIMULATIONS (DIS)--ENGINEERI.......          20,895          20,895  ..............
    TACTICAL EXPLOITATION OF NATIONAL CAPABILITIES--EMD.........          19,113          19,113  ..............
    BRILLIANT ANTI-ARMOR SUBMUNITION (BAT)......................         202,302         187,302         -15,000
    JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM...............           6,940           6,940  ..............
    POSITIONING SYSTEMS DEVELOPMENT (SPACE).....................             419             419  ..............
    COMBINED ARMS TACTICAL TRAINER (CATT).......................           2,823           2,823  ..............
    AVIATION--ENG DEV...........................................           5,109           5,109  ..............
    WEAPONS AND MUNITIONS--ENG DEV..............................           3,577           5,077          +1,500
    LOGISTICS AND ENGINEER EQUIPMENT--ENG DEV...................          28,039          28,039  ..............
    COMMAND, CONTROL, COMMUNICATIONS SYSTEMS--ENG DEV...........          11,052          11,052  ..............
    MEDICAL MATERIEL/MEDICAL BIOLOGICAL DEFENSE EQUIPMENT.......           4,483           4,483  ..............
    LANDMINE WARFARE/BARRIER--ENG DEV...........................          22,605           8,732         -13,873
    SENSE AND DESTROY ARMAMENT MISSILE--ENG DEV.................          22,372          22,372  ..............
    COMBAT IDENTIFICATION.......................................          19,784          19,784  ..............
    ARMY TACTICAL COMMAND & CONTROL HARDWARE & SOFTWARE.........          20,022          20,022  ..............
    FIREFINDER..................................................           2,564           2,564  ..............
                                                                 -----------------------------------------------
      TOTAL, ENGINEERING & MANUFACTURING DEVELOPMENT............       1,107,393       1,083,811         -23,582
                                                                 ===============================================
RDT&E MANAGEMENT SUPPORT:                                                                                       
    THREAT SIMULATOR DEVELOPMENT................................          14,004          18,004          +4,000
    TARGET SYSTEMS DEVELOPMENT..................................          11,688          11,688  ..............
    MAJOR T&E INVESTMENT........................................          40,449          40,449  ..............
    RAND ARROYO CENTER..........................................          17,576          17,576  ..............
    ARMY KWAJALEIN ATOLL........................................         138,769         124,769         -14,000
    ARMY TEST RANGES AND FACILITIES.............................         122,117         122,117  ..............
    ARMY TECHNICAL TEST INSTRUMENTATION AND TARGETS.............          33,184          33,184  ..............
    SURVIVABILITY/LETHALITY ANALYSIS............................          32,330          32,330  ..............
    DOD HIGH ENERGY LASER TEST FACILITY.........................          14,952          29,952         +15,000
    AIRCRAFT CERTIFICATION......................................           2,919           2,919  ..............
    METEOROLOGICAL SUPPORT TO RDT&E ACTIVITIES..................           6,434           6,434  ..............
    MATERIEL SYSTEMS ANALYSIS...................................          29,707          29,707  ..............
    EXPLOITATION OF FOREIGN ITEMS...............................           7,762           7,762  ..............
    SUPPORT OF OPERATIONAL TESTING..............................          81,672          81,672  ..............
    PROGRAMWIDE ACTIVITIES......................................          86,208          82,208          -4,000
    INTERNATIONAL COOPERATIVE RESEARCH AND DEVELOPMENT..........           1,581  ..............          -1,581
    TECHNICAL INFORMATION ACTIVITIES............................          15,451          15,451  ..............
    MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY.........           6,317           6,317  ..............
    ENVIRONMENTAL CONSERVATION..................................           1,778           1,778  ..............
    POLLUTION PREVENTION........................................           5,353           5,353  ..............
    ENVIRONMENTAL COMPLIANCE....................................          51,378          58,378          +7,000
    MINOR CONSTRUCTION (RPM)--RDT&E.............................           4,393           4,393  ..............
    MAINTENANCE AND REPAIR (RPM)--RDT&E.........................          85,119          86,419          +1,300
    REAL PROPERTY SERVICES (RPS)--RDT&E.........................          88,945          88,945  ..............
    BASE OPERATIONS--RDT&E......................................         231,653         231,653  ..............
    MANAGEMENT HEADQUARTERS (RESEARCH AND DEVELOPMENT)..........           4,837          31,337         +26,500
                                                                 -----------------------------------------------
        TOTAL, RDT&E MANAGEMENT SUPPORT.........................       1,136,576       1,170,795         +34,219
                                                                 ===============================================
OPERATIONAL SYSTEMS DEVELOPMENT:                                                                                
    MLRS PRODUCT IMPROVEMENT PROGRAM............................          26,678          40,378         +13,700
    AEROSTAT JOINT PROJECT OFFICE...............................          86,193          96,193         +10,000
    ADV FIELD ARTILLERY TACTICAL DATA SYSTEM....................          39,039          39,039  ..............
    COMBAT VEHICLE IMPROVEMENT PROGRAMS.........................         136,520         176,720         +40,200
    MANEUVER CONTROL SYSTEM.....................................          25,641          25,641  ..............
    AIRCRAFT MODIFICATIONS/PRODUCT IMPROVEMENT PROGRAMS.........           2,609          32,609         +30,000
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............           2,940           2,940  ..............
    DIGITIZATION................................................         156,960         120,043         -36,917
    MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT PROGRAM.............          17,412          31,412         +14,000
    OTHER MISSILE PRODUCT IMPROVEMENT PROGRAMS..................           1,255           1,255  ..............
    TRACTOR RUT.................................................           2,111           2,111  ..............
    TRACTOR CARD................................................           6,690           6,690  ..............
    JOINT TACTICAL COMMUNICATIONS PROGRAM (TRI-TAC).............           8,983           8,983  ..............
    JOINT TACTICAL GROUND SYSTEM................................           3,195           3,195  ..............
    SPECIAL ARMY PROGRAM........................................           5,547           5,547  ..............
    INFORMATION SYSTEMS SECURITY PROGRAM........................           9,647           9,647  ..............
    SATCOM GROUND ENVIRONMENT (SPACE)...........................          57,827          56,227          -1,600
    WWMCCS/GLOBAL COMMAND AND CONTROL SYSTEM....................          15,045          15,045  ..............
    TRAFFIC CONTROL, APPROACH AND LANDING SYSTEM................             750             750  ..............
    SECURITY AND INVESTIGATIVE ACTIVITIES.......................             500             500  ..............
    END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.................          44,326          57,326         +13,000
    NATO JOINT STARS............................................          13,500          13,500  ..............
                                                                 -----------------------------------------------
      TOTAL, OPERATIONAL SYSTEMS DEVELOPMENT....................         663,368         745,751         +82,383
                                                                 ===============================================
ECONOMIC ASSUMPTIONS............................................  ..............         -17,000         -17,000
                                                                 ===============================================
      TOTAL, RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, ARMY..       4,510,843       4,984,083        +473,240
----------------------------------------------------------------------------------------------------------------

           Research, Development, Test, and Evaluation, Navy

Appropriations, 1997....................................  $8,208,946,000
Budget estimate, 1998...................................   7,611,022,000
Committee recommendation................................   7,532,846,000

    The Committee recommends an appropriation of $7,532,846,000 
for the Navy's research, development, test, and evaluation 
programs, a decrease of $78,176,000 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.
    Oceanographic and atmospheric technology.--The Committee 
has provided $2,750,000 to implement the consolidation of the 
Naval Surface Warfare Center [NCSW] south Florida test 
facility. These funds will allow the Navy to continue their 
collaborative marine vehicle technology and other research and 
development activities under pending memoranda of understanding 
[MOU's].
    Marine Corps advanced technology demonstration.--The 
Committee recommends $15,000,000 for the Sea Dragon Laboratory 
Program. Included in this amount is $2,450,000 for modeling and 
simulation efforts as initiated by the Committee last year.
    Advanced technology transition.--The Committee encourages 
the Navy to continue its efforts in the development and 
demonstration of advanced technologies for the support of 
littoral warfare, and notes the favorable progress made in 
exploiting SWATH technology to develop an affordable, minimally 
manned, multimission, stable platform suitable for a wide 
variety of high-risk missions. The Committee is aware of an 
interest by the Navy and Marine Corps to evaluate the use of a 
SWATH hull-form like the SLICE technology demonstrator as a 
platform with modular containers for antisubmarine warfare, 
mine countermeasures, and command and control missions. The 
Committee recommends an increase of $5,000,000, directs the 
Navy to reprogram any additional funds necessary to initiate 
this effort in fiscal year 1998, and to establish a funded 
development program beginning in fiscal year 1998.
    Asbestos removal.--The Committee is concerned about the 
potential environmental threat associated with the disposal of 
large volumes of asbestos from the Navy's surface fleet and 
submarine inactivation program. Accordingly, the Committee 
directs that $2,000,000 be provided for the development of an 
asbestos thermochemical conversion pilot plant. This pilot 
plant should be located at Puget Sound Naval Shipyard and be 
used in conjunction with the ongoing submarine inactivation 
program.
    Freeze-dried blood research.--The Committee recommends 
further Navy freeze-dried blood research. The Committee 
anticipates significant results from this continued emphasis on 
blood research, and is hopeful that future increases will not 
be needed to support this effort. The Committee provides 
$2,500,000 only for this purpose.
    National crash survival data bank.--The Committee notes 
that the Naval Biodynamics Laboratory has conducted intensive 
test, study, and analyses of the human body's response to 
crashes. The Committee urges the Navy to ensure this data is 
not lost but is used to reduce crash-related fatalities and 
serious injuries.
    Photomagnetic materials research.--The Committee recommends 
$350,000 for photomagnetic material research in conjunction 
with a cooperative research and development agreement that has 
been established by the Navy.
    Cooperative engagement capability.--The Committee continues 
to support the U.S. Navy Cooperative Engagement Capability 
[CEC] Program. In particular, the Committee supports the use of 
space-based assets to provide range extension and enhanced 
sensor capability for CEC. Accordingly, the Committee 
recommends an increase of $10,000,000 in funding for CEC in 
fiscal year 1998 to build on earlier studies and begin 
preliminary engineering work associated with incorporating 
satellite range extension and space-based sensors in CEC.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Command, control, and communications technology.................          65,566          56,566          -9,000
    Strategic systems...........................................  ..............          -9,000          -9,000
Air systems and weapons advanced technology.....................          35,093          27,693          -7,400
    Integrated HP turbine engine technology.....................  ..............          -7,400          -7,400
Undersea warfare advanced technology............................          54,785          46,385          -8,400
    Shallow water surveillance advanced technology..............  ..............          -3,000          -3,000
    Beartrap advanced technology................................  ..............          -5,400          -5,400
S-3 weapons system improvement..................................           4,735             930          -3,805
    Common support aircraft.....................................  ..............          -3,805          -3,805
Arsenal ship....................................................         102,994          66,994         -36,000
Triservice standoff attack missile..............................           9,644           5,456          -4,188
    Ground and flight testing...................................  ..............          -4,188          -4,188
Mine countermeasures, mining, and special warfare...............          42,737          21,600         -21,137
----------------------------------------------------------------------------------------------------------------

    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]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
EW development..................................................         101,803          91,127         -10,676
    Joint emitter targeting system..............................  ..............          -2,000          -2,000
    Common missile warning system...............................  ..............          -6,000          -6,000
    ICAP III late award.........................................  ..............          -2,676          -2,676
F/A-18 squadrons................................................         316,976         290,976         -26,000
    Test and evaluation.........................................  ..............         -26,000         -26,000
Target systems development......................................          48,308          45,308          -3,000
Distributed surveillance system.................................          33,048          23,048         -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 Navy to address budget shortfalls; and to effect funding 
transfers recommended by the Committee or the Navy.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                  1998 budget      Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
Manpower, personnel, and training advanced technology                                                           
 development..................................................          18,812          20,042           +1,230 
    Virtual reality training research.........................  ..............          +1,230           +1,230 
Cooperative engagement........................................         139,229         149,229          +10,000 
    Space.....................................................  ..............         +10,000          +10,000 
Other Helo development........................................          73,354         113,354          +40,000 
    Air Interoperability Center...............................  ..............          +5,000           +5,000 
    LAMPS SH-60R..............................................  ..............         +25,000          +25,000 
    Parametric airborne dipping sonar [PADS] \1\..............  ..............         +10,000          +10,000 
P-3 Modernization Program.....................................           3,191          15,191          +12,000 
    P-3 AIP sensors...........................................  ..............         +12,000          +12,000 
New design SSN................................................         311,076         316,076           +5,000 
    Enhanced sonar dome demonstration/valida-  tion...........  ..............          +5,000           +5,000 
Navy Energy Program...........................................           2,088           4,588           +2,500 
    Natural gas cooling systems...............................  ..............          +2,500           +2,500 
Consolidated training systems development.....................          58,956          63,956           +5,000 
    PMRF sensors..............................................  ..............          +5,000           +5,000 
Marine Corps communications systems...........................          38,296          40,296           +2,000 
    Tactical hand-held radio..................................  ..............          +2,000           +2,000 
Environmental protection......................................          52,401          54,401           +2,000 
    Asbestos removal..........................................  ..............          +2,000           +2,000 
    Hospital desiccant demonstration..........................  ..............          (1,500)          (1,500)
Navy science assistance program...............................  ..............         +12,000          +12,000 
    LASH hyperspectral........................................  ..............         +12,000          +12,000 
Joint standoff weapon systems.................................          71,526          80,526           +9,000 
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Authorization adjustments'' heading of this
  report section.                                                                                               

    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 1998:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                  1998 budget      Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
Surface ship technology.......................................          46,859          52,859           +6,000 
    Power electronic building blocks..........................  ..............          +6,000           +6,000 
Materials, electronics, and computer technology...............          76,653          80,153           +3,500 
    Vacuum electronics........................................  ..............          -4,000           -4,000 
    Second source carbon fibers...............................  ..............          +2,000           +2,000 
    Photomagnetic material research...........................  ..............            +350             +350 
    Plasma quench technology..................................  ..............          +3,000           +3,000 
    Advanced Material Intelligent Processing Cen-  ter \1\....  ..............          +2,500           +2,500 
Oceanographic and atmospheric technology......................          48,211          66,961          +18,750 
    National Oceanographic Partnership Program [NOPP].........  ..............         +16,000          +16,000 
    NCSW test facility \1\....................................  ..............          +2,750           +2,750 
    PM-10 \1\.................................................  ..............            +750             +750 
Undersea warfare weaponry technology..........................          35,736          43,736           +8,000 
    6.25 torpedo project......................................  ..............          +4,000           +4,000 
    Undersea warfare and weapons technology \1\...............  ..............          +4,000           +4,000 
Ship propulsion system........................................          39,737          49,737          +10,000 
    Composite helicopter hangar...............................  ..............         +10,000          +10,000 
Marine Corps advanced technology demonstration [ATD]..........          34,178          51,178          +17,000 
    Sea Dragon................................................  ..............         +15,000          +15,000 
    CARS......................................................  ..............          +2,000           +2,000 
    Modeling and simulation \1\...............................  ..............          (2,450)          (2,450)
Carrier systems development...................................          98,587         115,587          +17,000 
Space and electronic warfare..................................           4,705           9,705           +5,000 
Shipboard system component development........................          19,194          19,194   ...............
    Navy service ship fuel cell...............................  ..............          (1,000)          (1,000)
Medical development...........................................          18,332          19,632           +1,300 
    Freeze-dried blood research...............................  ..............          +2,500           +2,500 
    Fleet health technology \2\...............................  ..............          -1,200           -1,200 
Environmental quality and logistics advanced technology.......          18,249          28,249          +10,000 
    Permanent fuel cell.......................................  ..............          +1,750           +1,750 
    Visualization of technical information project \1\........  ..............          +2,000           +2,000 
    Smart base \1\............................................  ..............          +6,250           +6,250 
Advanced technology transition................................          87,285          72,285          -15,000 
    Advanced technology transition............................  ..............         -20,000          -15,000 
    High-frequency surface wave radar.........................  ..............          (4,000)          (4,000)
    SWATH technology development \1\..........................  ..............          +5,000           +5,000 
    Affordble Array Technology Program........................  ..............          (4,900)          (4,900)
Surface and shallow water mine countermeasures................          58,231          76,431          +18,200 
    Integrated combat weapons systems.........................  ..............         +10,300          +10,300 
    Remote minehunting systems................................  ..............          +7,900           +7,900 
Ship preliminary design and feasibility studies...............          38,682          63,682          +25,000 
    CG modifications..........................................  ..............         +25,000          +25,000 
Joint strike fighter [JSF]--demonstration/validation..........         448,855         476,855          +28,000 
    Alternative engine development............................  ..............         +28,000          +28,000 
Surface combatant combat system engineering...................          87,934         122,934          +35,000 
    High-power discriminator..................................  ..............         +35,000          +35,000 
SSN-688 and Trident modernization.............................          42,294          67,294          +25,000 
    Multipurpose processor....................................  ..............         +25,000          +25,000 
Ship contract design/live fire T&E............................          75,713         100,713          +25,000 
    DD-21 schedule risk.......................................  ..............         +25,000          +25,000 
Ship self-defense--EMD........................................         132,270         134,270           +2,000 
    Nulka ship sets...........................................  ..............          +2,000           +2,000 
Management, technical, and international support..............          24,305          19,305           -5,000 
Test and evaluation support...................................         263,934         251,934          -12,000 
Industrial preparedness.......................................  ..............          54,000          +54,000 
    Mantech...................................................  ..............         +50,000          +50,000 
    Center for integrated manufacturing studies \1\...........  ..............          +4,000           +4,000 
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project funding increases''    
  heading of this 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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
        RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, NAVY                                                       
                                                                                                                
BASIC RESEARCH:                                                                                                 
    IN-HOUSE INDEPENDENT LABORATORY RESEARCH....................          15,834          15,834  ..............
    DEFENSE RESEARCH SCIENCES...................................         366,283         366,283  ..............
                                                                 -----------------------------------------------
      TOTAL, BASIC RESEARCH.....................................         382,117         382,117  ..............
                                                                 ===============================================
EXPLORATORY DEVELOPMENT:                                                                                        
    SURFACE/AEROSPACE SURVEILLANCE AND WEAPONS TECHNOLOGY.......          32,273          32,273  ..............
    SURFACE SHIP TECHNOLOGY.....................................          46,859          52,859          +6,000
    AIRCRAFT TECHNOLOGY.........................................          23,590          23,590  ..............
    MARINE CORPS LANDING FORCE TECHNOLOGY.......................          13,043          13,043  ..............
    COMMAND, CONTROL, AND COMMUNICATIONS TECHNOLOGY.............          65,566          56,566          -9,000
    READINESS, TRAINING, AND ENVIRONMENTAL QUALITY TECHNOL......          31,762          31,762  ..............
    MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY..............          76,653          80,153          +3,500
    ELECTRONIC WARFARE TECHNOLOGY...............................          22,810          22,810  ..............
    UNDERSEA SURVEILLANCE WEAPON TECHNOLOGY.....................          51,033          51,033  ..............
    MINE COUNTERMEASURES, MINING AND SPECIAL WARFARE............          42,737          21,600         -21,137
    OCEANOGRAPHIC AND ATMOSPHERIC TECHNOL-  OGY.................          48,211          66,961         +18,750
    UNDERSEA WARFARE WEAPONRY TECHNOLOGY........................          35,736          43,736          +8,000
                                                                 -----------------------------------------------
      TOTAL, EXPLORATORY DEVELOPMENT............................         490,273         496,386          +6,113
                                                                 ===============================================
ADVANCED DEVELOPMENT:                                                                                           
    AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY.................          35,093          27,693          -7,400
    PRECISION STRIKE AND AIR DEFENSE............................          43,320          43,320  ..............
    ADVANCED ELECTRONIC WARFARE TECHNOLOGY......................          18,144          18,144  ..............
    SHIP PROPULSION SYSTEM......................................          39,737          49,737         +10,000
    MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD)........          34,178          51,178         +17,000
    MEDICAL DEVELOPMENT.........................................          18,332          19,632          +1,300
    MANPOWER, PERSONNEL AND TRAINING ADV TECH DEV...............          18,812          20,042          +1,230
    ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECHNOLOG......          18,249          28,249         +10,000
    UNDERSEA WARFARE ADVANCED TECHNOLOGY........................          54,785          46,385          -8,400
    SHALLOW WATER MCM DEMOS.....................................          41,602          41,602  ..............
    ADVANCED TECHNOLOGY TRANSITION..............................          87,285          72,285         -15,000
    C\3\ ADVANCED TECHNOLOGY....................................          23,768          23,768  ..............
                                                                 -----------------------------------------------
      TOTAL, ADVANCED DEVELOPMENT...............................         433,305         442,035          +8,730
                                                                 ===============================================
DEMONSTRATION & VALIDATION:                                                                                     
    AIR/OCEAN TACTICAL APPLICATIONS.............................          16,017          16,017  ..............
    AVIATION SURVIVABILITY......................................           7,859           7,859  ..............
    ASW SYSTEMS DEVELOPMENT.....................................          22,869          22,869  ..............
    TACTICAL AIRBORNE RECONNAISSANCE............................          10,607          10,607  ..............
    ADVANCED COMBAT SYSTEMS TECHNOLOGY..........................           5,232           5,232  ..............
    SURFACE AND SHALLOW WATER MINE COUNTERMEASURES..............          58,231          76,431         +18,200
    ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT...............          61,122          61,122  ..............
    CARRIER SYSTEMS DEVELOPMENT.................................          98,587         115,587         +17,000
    SHIPBOARD SYSTEM COMPONENT DEVELOPMENT......................          19,194          19,194  ..............
    SHIP COMBAT SURVIVABILITY...................................           7,050           7,050  ..............
    PILOT FISH..................................................         118,728         118,728  ..............
    RETRACT JUNIPER.............................................           9,776           9,776  ..............
    RADIOLOGICAL CONTROL........................................           3,030           3,030  ..............
    SURFACE ASW.................................................           5,704           5,704  ..............
    ADVANCED SUBMARINE SYSTEM DEVELOPMENT.......................          59,067          59,067  ..............
    SUBMARINE TACTICAL WARFARE SYSTEMS..........................           4,931           4,931  ..............
    SHIP CONCEPT ADVANCED DESIGN................................          16,198          16,198  ..............
    SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES...............          38,682          63,682         +25,000
    ADVANCED NUCLEAR POWER SYSTEMS..............................         125,357         125,357  ..............
    ADVANCED SURFACE MACHINERY SYSTEMS..........................          49,741          49,741  ..............
    CHALK EAGLE.................................................         137,442         137,442  ..............
    COMBAT SYSTEM INTEGRATION...................................           7,739           7,739  ..............
    CONVENTIONAL MUNITIONS......................................          34,190          34,190  ..............
    ADVANCED WARHEAD DEVELOPMENT (MK-50.........................           2,012           2,012  ..............
    MARINE CORPS ASSAULT VEHICLES...............................          60,134          60,134  ..............
    MARINE CORPS GROUND COMBAT/SUPPORT SYS-  TEM................          36,464          36,464  ..............
    JOINT SERVICE EXPLOSIVE ORDNANCE DEVELOPMENT................          10,701          10,701  ..............
    COOPERATIVE ENGAGEMENT......................................         139,229         149,229         +10,000
    OCEAN ENGINEERING TECHNOLOGY DEVELOP-  MENT.................          12,658          12,658  ..............
    ENVIRONMENTAL PROTECTION....................................          52,401          54,401          +2,000
    NAVY ENERGY PROGRAM.........................................           4,159           4,159  ..............
    FACILITIES IMPROVEMENT......................................           1,720           1,720  ..............
    CHALK CORAL.................................................          94,358          94,358  ..............
    RETRACT MAPLE...............................................         120,033         120,033  ..............
    LINK PLUMERIA...............................................          29,433          29,433  ..............
    RETRACT ELM.................................................          21,822          21,822  ..............
    SHIP SELF DEFENSE--DEM/VAL..................................           9,961           9,961  ..............
    COMBAT SYSTEMS OCEANOGRAPHIC PERFORMANCE ASSESSMENT.........          11,706          11,706  ..............
    SPECIAL PROCESSES...........................................          81,439          81,439  ..............
    NATO RESEARCH AND DEVELOPMENT...............................          13,330          13,330  ..............
    LAND ATTACK TECHNOLOGY......................................          37,809          37,809  ..............
    JOINT STRIKE FIGHTER (JSF)--DEM/VAL.........................         448,855         476,855         +28,000
    NONLETHAL WEAPONS--DEM/VAL..................................          16,807          16,807  ..............
    JOINT PRECISION APPROACH AND LANDING SYSTEM--DEM/VAL........           2,993           2,993  ..............
    HARDENED TARGET MUNITIONS...................................           4,987           4,987  ..............
    SPACE AND ELECTRONIC WARFARE (SEW) ARCHITECTURE/ENGINE......           4,705           9,705          +5,000
                                                                 -----------------------------------------------
        TOTAL, DEMONSTRATION & VALIDATION.......................       2,135,069       2,240,269        +105,200
                                                                 ===============================================
ENGINEERING & MANUFACTURING DEVEL:                                                                              
    TRAINING SYSTEM AIRCRAFT....................................             403             403  ..............
    OTHER HELO DEVELOPMENT......................................          73,354         113,304         +39,950
    AV-8B AIRCRAFT--ENG DEV.....................................          11,034          11,034  ..............
    STANDARDS DEVELOPMENT.......................................          36,297          38,297          +2,000
    S-3 WEAPON SYSTEM IMPROVEMENT...............................           4,735             930          -3,805
    AIR/OCEAN EQUIPMENT ENGINEERING.............................           6,129           6,129  ..............
    P-3 MODERNIZATION PROGRAM...................................           3,191          15,191         +12,000
    TACTICAL COMMAND SYSTEM.....................................          31,518          31,518  ..............
    H-1 UPGRADES................................................          80,735          80,735  ..............
    ACOUSTIC SEARCH SENSORS.....................................          16,947          16,947  ..............
    V-22A.......................................................         529,495         529,495  ..............
    AIR CREW SYSTEMS DEVELOPMENT................................          12,111          12,111  ..............
    EW DEVELOPMENT..............................................         101,803          91,127         -10,676
    SURFACE COMBATANT COMBAT SYSTEM ENGINEERING.................          87,934         122,934         +35,000
    ARSENAL SHIP................................................         102,994          66,994         -36,000
    LPD-17 CLASS SYSTEMS INTEGRATION............................             471             471  ..............
    TRI-SERVICE STANDOFF ATTACK MISSILE.........................           9,644           5,456          -4,188
    STANDARD MISSILE IMPROVEMENTS...............................             549             549  ..............
    AIRBORNE MCM................................................          16,503          16,503  ..............
    SSN-688 AND TRIDENT MODERNIZATION...........................          42,294          67,294         +25,000
    AIR CONTROL.................................................           9,298           9,298  ..............
    ENHANCED MODULAR SIGNAL PROCESSOR...........................           3,462           3,462  ..............
    SHIPBOARD AVIATION SYSTEMS..................................           9,225           9,225  ..............
    SHIP SURVIVABILITY..........................................           6,081           6,081  ..............
    COMBAT INFORMATION CENTER CONVERSION........................          11,325          11,325  ..............
    SUBMARINE COMBAT SYSTEM.....................................          23,701          23,701  ..............
    NEW DESIGN SSN..............................................         311,076         316,076          +5,000
    SSN-21 DEVELOPMENTS.........................................          49,542          49,542  ..............
    SUBMARINE TACTICAL WARFARE SYSTEM...........................          45,663          45,663  ..............
    SHIP CONTRACT DESIGN/ LIVE FIRE T&E.........................          75,713         100,713         +25,000
    NAVY TACTICAL COMPUTER RESOURCES............................           4,794           4,794  ..............
    MINE DEVELOPMENT............................................           2,815           2,815  ..............
    UNGUIDED CONVENTIONAL AIR-LAUNCHED WEAPONS..................          28,890          28,890  ..............
    LIGHTWEIGHT TORPEDO DEVELOPMENT.............................          17,290          17,290  ..............
    MARINE CORPS MINE COUNTERMEASURES SYSTEMS--ENG DEV..........             950             950  ..............
    JOINT DIRECT ATTACK MUNITION................................          12,714          12,714  ..............
    JOINT SERVICE EXPLOSIVE ORDNANCE DEVELOPMENT................           6,613           6,613  ..............
    PERSONNEL, TRAINING, SIMULATION, AND HUMAN FACTORS..........           1,022           1,022  ..............
    NAVY ENERGY PROGRAM.........................................           2,088           4,588          +2,500
    BATTLE GROUP PASSIVE HORIZON EXTENSION SYSTEM...............           4,531           4,531  ..............
    JOINT STANDOFF WEAPON SYSTEMS...............................          71,526          80,526          +9,000
    SHIP SELF DEFENSE--EMD......................................         132,270         134,270          +2,000
    MEDICAL DEVELOPMENT.........................................           3,620           3,620  ..............
    NAVIGATION/ID SYSTEM........................................          50,370          50,370  ..............
    DISTRIBUTED SURVEILLANCE SYSTEM.............................          33,048          23,048         -10,000
                                                                 -----------------------------------------------
      TOTAL, ENGINEERING & MANUFACTURING DEVELOPMENT............       2,085,768       2,178,549         +92,781
                                                                 ===============================================
RDT&E MANAGEMENT SUPPORT:                                                                                       
    THREAT SIMULATOR DEVELOPMENT................................          12,860          12,860  ..............
    TARGET SYSTEMS DEVELOPMENT..................................          48,308          45,308          -3,000
    MAJOR T&E INVESTMENT........................................          33,236          33,236  ..............
    STUDIES AND ANALYSIS SUPPORT--NAVY..........................           8,755           8,755  ..............
    CENTER FOR NAVAL ANALYSES...................................          43,476          43,476  ..............
    FLEET TACTICAL DEVELOPMENT..................................           2,747           2,747  ..............
    TECHNICAL INFORMATION SERVICES..............................           8,763           8,763  ..............
    MANAGEMENT, TECHNICAL & INTERNATIONAL SUPPORT...............          24,305          19,305          -5,000
    STRATEGIC TECHNICAL SUPPORT.................................           2,110           2,110  ..............
    RDT&E SCIENCE AND TECHNOLOGY MANAGEMENT.....................          57,591          57,591  ..............
    RDT&E INSTRUMENTATION MODERNIZATION.........................           8,546           8,546  ..............
    RDT&E SHIP AND AIRCRAFT SUPPORT.............................          48,596          48,596  ..............
    TEST AND EVALUATION SUPPORT.................................         263,934         251,934         -12,000
    OPERATIONAL TEST AND EVALUATION CAPABILITY..................           9,107           9,107  ..............
    NAVY SPACE AND ELECTRONIC WARFARE (SEW) SUPPORT.............           2,783           2,783  ..............
    SEW SURVEILLANCE/RECONAISSANCE SUPPORT......................          11,941          11,941  ..............
    MARINE CORPS PROGRAM WIDE SUPPORT...........................           8,207           8,207  ..............
                                                                 -----------------------------------------------
      TOTAL, RDT&E MANAGEMENT SUPPORT...........................         595,265         575,265         -20,000
                                                                 ===============================================
OPERATIONAL SYSTEMS DEVELOPMENT:                                                                                
    STRATEGIC SUB & WEAPONS SYSTEM SUPPORT......................          44,419          44,419  ..............
    SSBN SECURITY TECHNOLOGY PROGRAM............................          24,726          24,726  ..............
    SUBMARINE ACOUSTIC WARFARE DEVELOPMENT......................           6,058           6,058  ..............
    F/A-18 SQUADRONS............................................         316,976         290,976         -26,000
    E-2 SQUADRONS...............................................          64,852          64,852  ..............
    FLEET TELECOMMUNICATIONS (TACTICAL).........................          19,336          19,336  ..............
    TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER (TMPC)........          93,359          93,359  ..............
    INTEGRATED SURVEILLANCE SYSTEM..............................           9,882           9,882  ..............
    AMPHIBIOUS TACTICAL SUPPORT UNITS...........................             672             672  ..............
    CONSOLIDATED TRAINING SYSTEMS DEVELOP-  MENT................          58,956          63,956          +5,000
    ELECTRONIC WARFARE (EW) READINESS SUPPORT...................           1,626           1,626  ..............
    HARM IMPROVEMENT............................................           6,169           6,169  ..............
    TACTICAL DATA LINKS.........................................          41,375          41,375  ..............
    SURFACE ASW COMBAT SYSTEM INTEGRATION.......................           7,991           7,991  ..............
    MK-48 ADCAP.................................................          10,786          10,786  ..............
    AVIATION IMPROVEMENTS.......................................          60,025          60,025  ..............
    NAVY SCIENCE ASSISTANCE PROGRAM.............................  ..............          12,000         +12,000
    F-14 UPGRADE................................................          11,704          11,704  ..............
    OPERATIONAL NUCLEAR POWER SYSTEMS...........................          55,998          55,998  ..............
    MARINE CORPS COMMUNICATIONS SYSTEMS.........................          38,296          40,296          +2,000
    MARINE CORPS GROUND COMBAT/SUPPORTING ARMS SYSTEMS..........          12,568          12,568  ..............
    MARINE CORPS COMBAT SERVICES SUPPORT........................           5,048           5,048  ..............
    TACTICAL AIM MISSILES.......................................          60,079          60,079  ..............
    ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM)...........           5,700           5,700  ..............
    SATELLITE COMMUNICATIONS (SPACE)............................          17,026          17,026  ..............
    INFORMATION SYSTEMS SECURITY PROGRAM........................          20,291          20,291  ..............
    WWMCCS/GLOBAL COMMAND AND CONTROL SYSTEM....................             498             498  ..............
    DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)............           3,165           3,165  ..............
    JOINT MILITARY INTELLIGENCE PROGRAMS........................           2,412           2,412  ..............
    MANNED RECONNAISSANCE SYSTEMS...............................             344             344  ..............
    NAVAL SPACE SURVEILLANCE....................................             399             399  ..............
    INDUSTRIAL PREPAREDNESS.....................................  ..............          54,000         +54,000
    CLASSIFIED PROGRAM..........................................         488,489         188,489        -300,000
                                                                 -----------------------------------------------
      TOTAL, OPERATIONAL SYSTEMS DEVELOPMENT....................       1,489,225       1,236,225        -253,000
                                                                 ===============================================
ECONOMIC ASSUMPTIONS............................................  ..............         -18,000         -18,000
                                                                 ===============================================
      TOTAL, RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, NAVY..       7,611,022       7,532,846         -78,176
----------------------------------------------------------------------------------------------------------------

         Research, Development, Test, and Evaluation, Air Force

Appropriations, 1997.................................... $14,499,606,000
Budget estimate, 1998...................................  14,451,379,000
Committee recommendation................................  14,142,873,000

    The Committee recommends an appropriation of 
$14,142,873,000 for the Air Force's research, development, 
test, and evaluation programs, a decrease of $308,506,000 to 
the budget request.
    The budget activities and programs funded under this 
appropriation are discussed below.

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    F-22 EMD.--The Committee recommendation provides 
$1,858,234,000 for continued development of the F-22 advanced 
tactical fighter, a reduction of $213,000,000 to the budget 
request. The Committee has also recommended that $80,864,000 
budgeted for advanced procurement in the ``Aircraft 
procurement, Air Force'' account be deleted.
    The Committee endorses continued development of the F-22 
fighter. The Committee reduction to the engineering and 
manufacturing development [EMD] program deletes funds budgeted 
for termination liability in fiscal year 1998. Termination 
liability funds are required in the event the Department of 
Defense terminates the program. At the end of the fiscal year, 
termination liability funds from the previous fiscal year 
basically become the initial funding for the next fiscal year. 
The Committee does not expect the F-22 program to be terminated 
in fiscal year 1998; therefore, the termination liability funds 
are not required. Further, the Committee understands that the 
prime contractor agreed to absorb a portion of the fiscal year 
1997 termination liability. The Committee expects that this 
reduction will have no impact on the F-22 EMD program.
    The Committee, however, remains concerned about the 
potential cost growth in the F-22 EMD and production program. 
The Committee has recommended deletion of the F-22 advanced 
procurement funds to ensure the program stays focused on 
completion of the EMD program. A number of critical issues lie 
ahead in fiscal year 1998--software development, avionics 
integration, flight testing, and producibility initiatives. The 
Committee believes there must be demonstrable progress on each 
of these matters before the Defense Department and the Congress 
can proceed with the production program with confidence.
    Joint air-to-surface standoff missile [JASSM].--The 
Committee has provided $107,021,000, a reduction to the budget 
request of $96,300,000. The specific program reductions are 
outlined in this section's Committee table under the heading 
``Program reductions and deferrals.''
    The Committee understands that the Department of Defense is 
proceeding with an analysis of alternatives for meeting the 
JASSM mission requirements in a joint manner. The Committee 
strongly endorses a thorough and fair evaluation of all 
possible options--existing missiles, modifications of existing 
missiles, and new missile systems. The Committee has completed 
a careful review of the two JASSM concepts as well as SLAM-ER. 
SLAM-ER offers a modified existing system, with demonstrated 
capability and known cost and performance. The JASSM candidates 
offer improved performance and potential cost advantages; 
however, the promises of JASSM remain to be proven.
    A recent Joint Requirements Oversight Council endorsed the 
requirement for JASSM, but did not resolve the acquisition 
strategy issue. The Committee believes that the Department of 
Defense must make a conscious, joint decision about its future 
acquisition of a long-range, precision strike weapon. The 
analysis of alternatives should provide the sound analytical 
basis necessary for defining a joint acquisition strategy.
    With this in mind, the Committee has recommended a 
reduction without prejudice in the JASSM program. The Committee 
reduction deletes funds for premature aircraft integration and 
test support efforts, while also reducing program office and 
mission support costs.
    The Committee believes that the funds provided will allow 
the JASSM program to continue to make measured progress on the 
competing designs while also providing refined information for 
the analysis of alternatives.
    Advanced spacecraft technology.--The Committee expects that 
the increase provided for the solar thermionic orbital transfer 
vehicle shall be used for both development work and for the 
upper stage flight demonstration.
    Air traffic control, approach, and landing system.--The 
Committee recommendation for this program element provides an 
additional $6,900,000 only for air traffic control simulators. 
The Committee directs that this increase be devoted to 
upgrading simulators being used in training activities at 
Keesler Air Force Base.

                           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 outyear 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 
outyear transition commitments; or can be deferred without 
adversely affecting related program developments.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                  1998 budget      Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
Defense research sciences.....................................         226,832         222,249           -4,583 
    Math and computer science.................................  ..............          -2,755           -2,755 
    Electronics...............................................  ..............          -1,828           -1,828 
    National Solar Observatory \1\............................  ..............            (650)            (650)
Aerospace propulsion..........................................          69,303          60,577           -8,726 
    Turbine engine technology.................................  ..............          -6,861           -6,861 
    High thermal stability hydrocarbon fuel...................  ..............          -1,865           -1,865 
Aerospace avionics............................................          69,401          66,484           -2,917 
    Evaluate photonic and A-to-D technology...................  ..............          -2,701           -2,701 
    Inertial navigation unit components.......................  ..............          -3,216           -3,216 
    Environmental laser mapping \1\...........................  ..............          +3,000           +3,000 
Phillips Lab exploratory development..........................         111,136         112,009             +873 
    Tactical missile propulsion technologies..................  ..............          -3,127           -3,127 
    Coherent laser diode arrays...............................  ..............          -3,000           -3,000 
    Integrated high payoff rocket propulsion technology \1\...  ..............          +2,000           +2,000 
    HAARP \1\.................................................  ..............          +5,000           +5,000 
Aerospace propulsion subsystems integration...................          30,564          27,031           -3,533 
    Aircraft propulsion subsystem integration.................  ..............          -3,533           -3,533 
Aerospace propulsion and power technology.....................          37,014          35,183           -1,831 
    Advanced turbine engine gas generator.....................  ..............          -1,831           -1,831 
Conventional weapons technology...............................          26,227          23,187           -3,040 
    Next generation air-to-air threats........................  ..............          -3,040           -3,040 
F-22 EMD......................................................       2,071,234       1,858,234         -213,000 
    Termination liability.....................................  ..............        -213,000         -213,000 
EW development................................................          78,465          82,308           +3,843 
    Common missile warning system [CMWS]......................  ..............          -6,157           -6,157 
    Advanced flares for C-17 and B-1 \1\......................  ..............         +10,000          +10,000 
Joint air-to-surface standoff missile [JASSM].................         203,321         107,021          -96,300 
    Weapon systems development................................  ..............         -18,200          -18,200 
    Test support..............................................  ..............         -49,400          -49,400 
    Program office/mission support............................  ..............         -10,900          -10,900 
    Aircraft integration costs................................  ..............         -17,800          -17,800 
    Alternate engine source study \1\.........................  ..............          (5,000)          (5,000)
Advanced program technology...................................          95,056          71,556          -23,500 
Advanced program evaluation...................................         214,011         205,219           -8,792 
NATO joint STARS..............................................          36,061          23,061          -13,000 
    Phase II proposal preparation.............................  ..............          -3,000           -3,000 
    Interim logistics support long lead.......................  ..............         -10,000          -10,000 
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project funding increases''    
  heading of this report section.                                                                               

    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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Electronic combat technology....................................          25,621          24,121          -1,500
    Laser based infrared countermeasures........................  ..............          -1,500          -1,500
----------------------------------------------------------------------------------------------------------------

    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]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Materials.......................................................          70,224          71,224          +1,000
    Inorganic/organic optical limiters..........................  ..............          +1,000          +1,000
Armstrong Lab exploratory development...........................          76,102          79,102          +3,000
    Portable direct digital x ray...............................  ..............          +3,000          +3,000
Hypersonic Technology Program...................................           9,840          12,840          +3,000
    Hypersonic wind tunnel design study.........................  ..............          +3,000          +3,000
Advanced materials for weapon systems...........................          20,596          30,096          +9,500
    Infrared signature suppression materials....................  ..............          +6,000          +6,000
    Electrochemical fatigue sensor..............................  ..............          +3,500          +3,500
Threat simulator development....................................          51,846          56,746          +4,900
    Digital integrated air defense system [IADS]................  ..............          +2,400          +2,400
    Digital IADS integration with ECIT..........................  ..............          +2,000          +2,000
    Airborne radar maintenance..................................  ..............            +500            +500
Pollution prevention............................................           5,880          10,880          +5,000
    Environmental systems management analysis and reporting                                                     
     network system [E-SMART]...................................  ..............          +5,000          +5,000
F-16 squadrons..................................................         100,233         115,233         +15,000
    Digital terrain systems.....................................  ..............         +15,000         +15,000
Air traffic control, approach, and landing system...............           6,571          13,471          +6,900
    Air traffic control simulators..............................  ..............          +6,900          +6,900
Spacetrack (space)..............................................          28,573          36,073          +7,500
    AEOS development and integration with MSSS..................  ..............          +7,500          +7,500
Cobra ball......................................................  ..............          12,000         +12,000
    Advanced airborne sensor....................................  ..............         +12,000         +12,000
Productivity, Reliability, Availability, Maintainability Program                                                
 Office [PRAMPO]................................................           1,032          11,032         +10,000
    Blade repair facility.......................................  ..............         +10,000         +10,000
----------------------------------------------------------------------------------------------------------------

    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 1998:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Advanced spacecraft technology..................................          40,846         100,846         +60,000
    Clementine..................................................  ..............         +50,000         +50,000
    Solar thermionic orbital transfer vehicle...................  ..............         +10,000         +10,000
Advanced weapons technology.....................................          41,238          59,238         +18,000
    Geosynchronous space object imaging.........................  ..............         +15,000         +15,000
    High energy laser technology \1\............................  ..............          -3,000          -3,000
    Field ladar demonstrator [FLD] upgrades \2\.................  ..............          +6,000          +6,000
C\3\ advanced development.......................................          12,897          13,897          +1,000
    Survivable asynchronous transfer mode.......................  ..............          +1,000          +1,000
Variable stability in-flight simulator test aircraft............  ..............           8,000          +8,000
Intercontinental ballistic missile--Engineering and                                                             
 manufacturing development [EMD]................................         137,944         152,944         +15,000
    Mark-21 Guidance Replacement Program........................  ..............         +15,000         +15,000
Development planning............................................           6,049           4,549          -1,500
Major T&E investment............................................          47,336          41,336          -6,000
Maintenance and repair [RPM]--RDT&E.............................          55,200          58,000          +2,800
    Landing gear life extension.................................  ..............          +6,000          +6,000
    Infrastructure support......................................  ..............          -3,200          -3,200
AGM-86C conventional air-launched cruise missile system.........  ..............           3,500          +3,500
Theater battle management [TBM] C\4\I...........................          24,013          28,013          +4,000
    Theater battle management core systems  [TBMCS].............  ..............          +4,000          +4,000
Joint surveillance and target attack radar system [Joint STARS].         119,189         124,189          +5,000
    Joint STARS cruise missile defense technology...............  ..............          +5,000          +5,000
----------------------------------------------------------------------------------------------------------------
\1\ Program reductions as described under the heading ``Program reductions and deferrals.''                     
\2\ Increase reflects Committee recommendations as outlined in the ``Program and project funding 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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
       RESEARCH DEVELOPMENT TEST AND EVALUATION AIR FORCE                                                       
                                                                                                                
BASIC RESEARCH: DEFENSE RESEARCH SCIENCES.......................         226,832         222,249          -4,583
EXPLORATORY DEVELOPMENT:                                          ..............                                
    MATERIALS...................................................          70,224          71,224          +1,000
    AEROSPACE FLIGHT DYNAMICS...................................          60,509          60,509  ..............
    ARMSTRONG LAB EXPLORATORY DEVELOPMENT.......................          76,102          79,102          +3,000
    AEROSPACE PROPULSION........................................          69,303          60,577          -8,726
    AEROSPACE AVIONICS..........................................          69,401          66,484          -2,917
    HYPERSONIC TECHNOLOGY PROGRAM...............................           9,840          12,840          +3,000
    PHILLIPS LAB EXPLORATORY DEVELOPMENT........................         111,136         112,009            +873
    CONVENTIONAL MUNITIONS......................................          40,772          40,772  ..............
    COMMAND CONTROL AND COMMUNICATIONS..........................          86,067          86,067  ..............
                                                                 -----------------------------------------------
      TOTAL, EXPLORATORY DEVELOPMENT............................         593,354         589,584          -3,770
                                                                 ===============================================
ADVANCED DEVELOPMENT:                                                                                           
    LOGISTICS SYSTEMS TECHNOLOGY................................          15,338          15,338  ..............
    INTEGRATED DATA SYSTEMS.....................................          19,753          19,753  ..............
    ADVANCED MATERIALS FOR WEAPON SYSTEMS.......................          20,596          30,096          +9,500
    AEROSPACE PROPULSION SUBSYSTEMS INTEGRATION.................          30,564          27,031          -3,533
    ADVANCED AVIONICS FOR AEROSPACE VEHICLES....................          26,507          26,507  ..............
    FLIGHT VEHICLE TECHNOLOGY...................................           5,766           5,766  ..............
    AEROSPACE STRUCTURES........................................          15,032          15,032  ..............
    AEROSPACE PROPULSION AND POWER TECHNOL-  OGY................          37,014          35,183          -1,831
    PERSONNEL, TRAINING AND SIMULATION TECHNOLOGY...............           6,147           6,147  ..............
    CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY............          17,204          17,204  ..............
    FLIGHT VEHICLE TECHNOLOGY INTEGRATION.......................           7,795           7,795  ..............
    ADVANCED AVIONICS INTEGRATION...............................          12,716          12,716  ..............
    ELECTRONIC COMBAT TECHNOLOGY................................          25,621          24,121          -1,500
    SPACE AND MISSILE ROCKET PROPULSION.........................          16,247          16,247  ..............
    ADVANCED SPACECRAFT TECHNOLOGY..............................          40,846         100,846         +60,000
    SPACE SYSTEMS ENVIRONMENTAL INTERACTIONS TECHNOLOGY.........           3,151           3,151  ..............
    CONVENTIONAL WEAPONS TECHNOLOGY.............................          26,227          23,187          -3,040
    ADVANCED WEAPONS TECHNOLOGY.................................          41,238          59,238         +18,000
    WEATHER SYSTEMS TECHNOLOGY..................................           2,036           2,036  ..............
    ENVIRONMENTAL ENGINEERING TECHNOLOGY........................           4,084           4,084  ..............
    C3I SUBSYSTEM INTEGRATION...................................           9,922           9,922  ..............
    ADVANCED COMPUTING TECHNOLOGY...............................           5,613           5,613  ..............
    C3 ADVANCED DEVELOPMENT.....................................          12,897          13,897          +1,000
                                                                 -----------------------------------------------
      TOTAL, ADVANCED DEVELOPMENT...............................         402,314         480,910         +78,596
                                                                 ===============================================
DEMONSTRATION & VALIDATION:                                                                                     
    INTELLIGENCE ADVANCED DEVELOPMENT...........................           4,738           4,738  ..............
    AIRBORNE LASER TECHNOLOGY...................................         157,136         157,136  ..............
    ADVANCED MILSATCOM (SPACE)..................................          41,448          41,448  ..............
    POLAR ADJUNCT (SPACE).......................................          29,585          29,585  ..............
    NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL SAT.......          51,504          51,504  ..............
    SPACE BASED INFRARED ARCHITECTURE (SPACE)--DEM/VAL..........         222,401         222,401  ..............
    COMMAND, CONTROL, AND COMMUNICATION APPLICATIONS............           7,650           7,650  ..............
    COMBAT IDENTIFICATION TECHNOLOGY............................           1,395           1,395  ..............
    NATO RESEARCH AND DEVELOPMENT...............................          13,433          13,433  ..............
    JOINT STRIKE FIGHTER (JSF)--DEM/VAL.........................         458,052         458,052  ..............
    INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.................          32,837          32,837  ..............
    C-130J--DEM/VAL.............................................           3,968           3,968  ..............
    EVOLVED EXPENDABLE LAUNCH VEHICLE PROGRAM (SPACE)...........          63,260          63,260  ..............
    GLOBAL BROADCAST SERVICE....................................          56,977          56,977  ..............
    VARIABLE STABILITY IN-FLIGHT SIMULATOR TEST AIRCRAFT........  ..............           8,000          +8,000
    HARDENED TARGET MUNITIONS...................................           4,981           4,981  ..............
                                                                 -----------------------------------------------
      TOTAL, DEMONSTRATION & VALIDATION.........................       1,149,365       1,157,365          +8,000
                                                                 ===============================================
ENGINEERING & MANUFACTURING DEVEL                                                                               
    INTEGRATED AVIONICS PLANNING AND DEVELOPMENT................          16,494          16,494  ..............
    ENGINE MODEL DERIVATIVE PROGRAM (EMDP)......................             741             741  ..............
    NUCLEAR WEAPONS SUPPORT.....................................           4,782           4,782  ..............
    B-1B........................................................         216,886         216,886  ..............
    TRAINING SYSTEMS DEVELOPMENT................................           4,305           4,305  ..............
    SPECIALIZED UNDERGRADUATE PILOT TRAINING....................          80,238          80,238  ..............
    F-22 EMD....................................................       2,071,234       1,858,234        -213,000
    B-2 ADVANCED TECHNOLOGY BOMBER..............................         355,750         355,750  ..............
    MANPOWER, PERSONNEL AND TRAINING DEVELOPMENT................           4,534           4,534  ..............
    EW DEVELOPMENT..............................................          78,465          82,308          +3,843
    SPACE BASED INFRARED ARCHITECTURE (SPACE)--EMD..............         338,413         338,413  ..............
    MILSTAR LDR/MDR SATELLITE COMMUNICATIONS (SPACE)............         676,690         676,690  ..............
    GLOBAL POSITIONING SYSTEM BLOCK IIF (SPACE).................          71,094          71,094  ..............
    MUNITIONS DISPENSER DEVELOPMENT.............................          18,076          18,076  ..............
    ARMAMENT/ORDNANCE DEVELOPMENT...............................           1,597           1,597  ..............
    SUBMUNITIONS................................................           4,956           4,956  ..............
    AIR BASE OPERABILITY........................................           1,424           1,424  ..............
    JOINT DIRECT ATTACK MUNITION................................          19,553          19,553  ..............
    AEROMEDICAL/CHEMICAL DEFENSE SYSTEMS........................           4,354           4,354  ..............
    LIFE SUPPORT SYSTEMS........................................           3,726           3,726  ..............
    CIVIL, FIRE, ENVIRONMENTAL, SHELTER ENGINEERING.............           2,698           2,698  ..............
    JOINT STANDOFF WEAPONS SYSTEMS..............................          24,676          24,676  ..............
    COMBAT TRAINING RANGES......................................          20,331          20,331  ..............
    COMPUTER RESOURCE TECHNOLOGY TRANSITION (CRTT)..............           1,459           1,459  ..............
    INTELLIGENCE EQUIPMENT......................................           1,287           1,287  ..............
    JOINT TACTICAL INFORMATION DISTRIBUTION SYSTEM (JTIDS)......           8,557           8,557  ..............
    JOINT INTEROPERABILITY OF TACTICAL COMMAND & CONTROL........           5,929           5,929  ..............
    INTERCONTINENTAL BALLISTIC MISSILE--EMD.....................         137,944         152,944         +15,000
    EVOLVED EXPENDABLE LAUNCH VEHICLE PROGRAM (SPACE)...........          28,376          28,376  ..............
    SENSOR FUSED WEAPONS........................................          19,804          19,804  ..............
    JOINT AIR-TO-SURFACE STANDOFF MISSILE  (JASSM)..............         203,321         107,021         -96,300
    COMBAT INTELLIGENCE SYSTEM..................................          12,267          12,267  ..............
    COMBAT SURVIVOR EVADER LOCATOR..............................           4,315           4,315  ..............
                                                                 -----------------------------------------------
      TOTAL, ENGINEERING & MANUFACTURING DEVELOPMENT............       4,444,276       4,153,819        -290,457
                                                                 ===============================================
RDT&E MANAGEMENT SUPPORT:                                                                                       
    SPACE TEST PROGRAM (SPACE)..................................          42,241          42,241  ..............
    THREAT SIMULATOR DEVELOPMENT................................          51,846          56,746          +4,900
    TARGET SYSTEMS DEVELOPMENT..................................           4,780           4,780  ..............
    MAJOR T&E INVESTMENT........................................          47,336          41,336          -6,000
    RAND PROJECT AIR FORCE......................................          21,768          21,768  ..............
    RANCH HAND II EPIDEMIOLOGY STUDY............................          10,933          10,933  ..............
    INITIAL OPERATIONAL TEST & EVALUATION.......................          28,319          28,319  ..............
    TEST AND EVALUATION SUPPORT.................................         389,348         389,348  ..............
    DEVELOPMENT PLANNING........................................           6,049           4,549          -1,500
    ENVIRONMENTAL CONSERVATION..................................          11,914          11,914  ..............
    POLLUTION PREVENTION........................................           5,880          10,880          +5,000
    ENVIRONMENTAL COMPLIANCE....................................          17,126          17,126  ..............
    ROCKET SYSTEMS LAUNCH PROGRAM (SPACE).......................           8,013           8,013  ..............
    MINOR CONSTRUCTION (RPM)--RDT&E.............................           1,853           1,853  ..............
    MAINTENANCE AND REPAIR (RPM)--RDT&E.........................          55,200          58,000          +2,800
    REAL PROPERTY SERVICES (RPS)--RDT&E.........................          49,614          49,614  ..............
    BASE OPERATIONS--RDT&E......................................          65,365          65,365  ..............
    INTERNATIONAL ACTIVITIES....................................           3,715           3,715  ..............
                                                                 -----------------------------------------------
      TOTAL, RDT&E MANAGEMENT SUPPORT...........................         821,300         826,500          +5,200
                                                                 ===============================================
OPERATIONAL SYSTEMS DEVELOPEMENT:                                                                               
    B-52 SQUADRONS..............................................           3,427           3,427  ..............
    ADVANCED CRUISE MISSILE.....................................           2,393           2,393  ..............
    JOINT SURVEILLANCE SYSTEM...................................           2,020           2,020  ..............
    REGION/SECTOR OPERATION CONTROL CENTER MODERNIZATION........          20,512          20,512  ..............
    NORTH ATLANTIC DEFENSE SYSTEM...............................           1,442           1,442  ..............
    F-16 SQUADRONS..............................................         100,233         115,233         +15,000
    F-15E SQUADRONS.............................................         137,538         137,538  ..............
    MANNED DESTRUCTIVE SUPPRESSION..............................          13,561          13,561  ..............
    F-117A SQUADRONS............................................           9,520           9,520  ..............
    TACTICAL AIM MISSILES.......................................          53,171          53,171  ..............
    ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM)...........          50,781          50,781  ..............
    PODDED RECONNAISSANCE SYSTEM................................             299             299  ..............
    AF TENCAP...................................................          15,251          15,251  ..............
    SPECIAL EVALUATION PROGRAM..................................          73,107          73,107  ..............
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............          93,122          93,122  ..............
    AGM-86C CONVENTIONAL AIR-LAUNCHED CRUISE MISSILE SYSTEM.....  ..............           3,500          +3,500
    THEATER AIR CONTROL SYSTEMS.................................             393             393  ..............
    AIRBORNE WARNING AND CONTROL SYSTEM (AWACS).................          46,807          46,807  ..............
    ADVANCED COMMUNICATIONS SYSTEMS.............................           2,966           2,966  ..............
    EVALUATION AND ANALYSIS PROGRAM.............................          74,917          74,917  ..............
    ADVANCED PROGRAM TECHNOLOGY.................................          95,056          71,556         -23,500
    THEATER BATTLE MANAGEMENT (TBM) C4I.........................          24,013          28,013          +4,000
    JOINT SURVEILLANCE AND TARGET ATTACK RADAR SYSTEM...........         119,189         124,189          +5,000
    SEEK EAGLE..................................................          17,716          17,716  ..............
    ADVANCED PROGRAM EVALUATION.................................         214,011         205,219          -8,792
    USAF MODELING AND SIMULATION................................          21,718          21,718  ..............
    MISSION PLANNING SYSTEMS....................................          16,526          16,526  ..............
    THEATER MISSILE DEFENSES....................................          29,182          29,182  ..............
    TECHNICAL EVALUATION SYSTEM.................................         105,645         105,645  ..............
    SPECIAL EVALUATION SYSTEM...................................          40,344          40,344  ..............
    MANAGEMENT HEADQUARTERS GDIP................................           1,360           1,360  ..............
    DEFENSE SATELLITE COMMUNICATIONS SYSTEM (SPACE).............          10,547          10,547  ..............
    MINIMUM ESSENTIAL EMERGENCY COMMUNICATIONS NETWORK..........          34,409          34,409  ..............
    INFORMATION SYSTEMS SECURITY PROGRAM........................           5,298           5,298  ..............
    GLOBAL COMBAT SUPPORT SYSTEM................................          20,894          20,894  ..............
    ELECTROMAGNETIC COMPATIBILITY ANALYSIS CENTER (ECAC)........           7,844           7,844  ..............
    WORLD-WIDE MILITARY COMMAND AND CONTROL SYSTEMS.............           6,820           6,820  ..............
    MILSTAR SATELLITE COMMUNICATIONS SYSTEM (SPACE).............          12,871          12,871  ..............
    SELECTED ACTIVITIES.........................................           3,000           3,000  ..............
    SATELLITE CONTROL NETWORK (SPACE)...........................          80,011          80,011  ..............
    WEATHER SERVICE.............................................           9,057           9,057  ..............
    AIR TRAFFIC CONTROL, APPROACH, AND LANDING SYSTEM...........           6,571          13,471          +6,900
    MEDIUM LAUNCH VEHICLES (SPACE)..............................           5,719           5,719  ..............
    SECURITY AND INVESTIGATIVE ACTIVITIES.......................             530             530  ..............
    NATIONAL AIRSPACE SYSTEM (NAS) PLAN.........................          12,830          12,830  ..............
    UPPER STAGE SPACE VEHICLES (SPACE)..........................           3,337           3,337  ..............
    TITAN SPACE LAUNCH VEHICLES (SPACE).........................          82,384          82,384  ..............
    TACTICAL TERMINAL...........................................             258             258  ..............
    DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)............          14,076          14,076  ..............
    NAVSTAR GLOBAL POSITIONING SYSTEM (USER EQUIPMENT)..........          46,300          46,300  ..............
    NAVSTAR GLOBAL POSITIONING SYSTEM (SPACE AND CONTROL).......          26,685          26,685  ..............
    EASTERN SPACE LAUNCH FACILITY (ESLF)  (SPACE)...............          34,186          34,186  ..............
    NCMC--TW/AA SYSTEM..........................................           7,362           7,362  ..............
    SPACETRACK (SPACE)..........................................          28,573          36,073          +7,500
    DEFENSE SUPPORT PROGRAM (SPACE).............................          23,193          23,193  ..............
    NUDET DETECTION SYSTEM (SPACE)..............................          14,145          14,145  ..............
    SPACE ARCHITECT.............................................          14,590          14,590  ..............
    C-5 AIRLIFT SQUADRONS.......................................           9,751           9,751  ..............
    C-17 AIRCRAFT...............................................         113,605         113,605  ..............
    AIR CARGO MATERIAL HANDLING (463-L) (NON-  IF)..............           7,947           7,947  ..............
    KC-135S.....................................................           1,992           1,992  ..............
    DEPOT MAINTENANCE (NON-IF)..................................           1,482           1,482  ..............
    INDUSTRIAL PREPAREDNESS.....................................          48,429          48,429  ..............
    PRODUCTIVITY, RELIABILITY, AVAILABILITY, MAINTAIN. PRO......           1,032          11,032         +10,000
    SUPPORT SYSTEMS DEVELOPMENT.................................           3,657           3,657  ..............
    CRYPTOLOGIC/SIGINT-RELATED SKILL TRAINING...................           1,427           1,427  ..............
    CIVILIAN COMPENSATION PROGRAM...............................           6,497           6,497  ..............
    NATO JOINT STARS............................................          36,061          23,061         -13,000
    COBRA BALL (FLD)............................................  ..............          12,000         +12,000
    CLASSIFIED PROGRAM..........................................       4,684,348       4,640,248         -44,100
                                                                 -----------------------------------------------
      TOTAL, OPERATIONAL SYSTEMS DEVELOPEMENT...................       6,813,938       6,788,446         -25,492
                                                                 ===============================================
ECONOMIC ASSUMPTIONS............................................  ..............         -76,000         -76,000
                                                                 ===============================================
      TOTAL, RESEARCH DEVELOPMENT TEST AND EVALUATION AIR FORCE.      14,451,379      14,142,873        -308,506
----------------------------------------------------------------------------------------------------------------

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

Appropriations, 1997....................................  $9,362,800,000
Budget estimate, 1998...................................   9,069,680,000
Committee recommendation................................   9,608,689,000

    The Committee recommends an appropriation of $9,608,689,000 
for defense-wide research, development, test, and evaluation 
programs, an increase of $539,009,000 to the budget request.
    The budget activities and programs funded under this 
appropriation are discussed below.

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Demining.--The Committee has provided an increase to the 
budget request amount for demining research and development 
efforts. The Committee directs that acoustic techniques for 
mine detection be included in the candidates evaluated in 
allocating the additional funds.
    Counterterror technical support.--The Committee understands 
that the program plans to spend as much as $5,000,000 
conducting explosives tests at an existing academic test 
facility. The Committee endorses this program and has 
recommended full funding of the budget request to permit these 
tests to proceed as planned.
    Verification technology demonstration.--The Committee 
directs that $3,000,000 within this program element shall be 
available for the Caribbean radiation early warning system 
[CREWS]. The Committee recommends that these funds be executed 
under the direction of the OSD Nuclear Treaty Program Office 
for the purpose of applying existing monitoring capabilities in 
the Center for Monitoring Research to the creation of CREWS.
    United States-Japan management training.--The Committee 
recognizes the accomplishments made under the United States-
Japan Management Training Program. The Committee directs that 
up to $10,000,000 may be made available to continue this 
program from within funds recommended for the University 
Research Initiatives Program element within this account or 
from funds recommended for the Defense Research Sciences 
Program element within the ``Research, development, test, and 
evaluation, Air Force'' account.
    Defense reconnaissance support activities (Space).--The 
Committee recommendations includes an increase of $8,000,000 
only for continued activities at the Pacific Disaster Center. 
The Committee expects these funds to be used to expedite 
modeling technologies underway to ensure the earliest possible 
full operation of the Center and to serve as the model for 
other disaster and related activities. The Committee expects 
the technologies to be designed using software for massively 
parallel computers.

                 BALLISTIC MISSILE DEFENSE ORGANIZATION

    Ballistic Missile Defense Organization [BMDO].--The 
Committee has provided $3,226,644,000 for research, 
development, test, and evaluation [RDT&E] efforts on national 
and theater ballistic missile defense systems and technologies. 
This appropriation represents an overall increase of 
$644,700,000 to the Ballistic Missile Defense Organization 
[BMDO] RDT&E budget request. The Committee has also approved 
the budget request amount for procurement of missile defense 
systems, $386,400,000, in the respective military service 
procurement accounts. Thus, the total appropriation for 
ballistic missile defense programs in this bill is 
$3,613,044,000, consistent with the Senate-reported bill 
authorizing DOD programs for fiscal year 1998. The Committee 
has made a number of adjustments to individual RDT&E accounts.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Support technologies--applied research..........................         101,932         115,932         +14,000
    Wide bandgap electronics....................................  ..............         +14,000         +14,000
Support technologies--advanced technology develop-  ment........         147,557         351,957        +204,400
    Advanced intercept technology...............................  ..............         +40,000         +40,000
    Space-based laser...........................................  ..............        +118,000        +118,000
    Midcourse space experiment..................................  ..............          +6,400          +6,400
    APEX Program................................................  ..............         +10,000         +10,000
    Russian-American observational satellites  [RAMOS]..........  ..............         +15,000         +15,000
    Photo conduction on active pixel sensor technol-  ogy.......  ..............          +5,000          +5,000
    Scorpius....................................................  ..............         +10,000         +10,000
Theater high-altitude area defense system--TMD--demonstration/                                                  
 validation.....................................................         294,647         353,427         +58,780
Navy theaterwide missile defense demonstration/validation.......         194,898         274,898         +80,000
Boost phase intercept theater missile: Defense acquisition--                                                    
 demonstration/validation.......................................          12,885          17,885          +5,000
National missile defense--demonstration/validation..............         504,091         978,091        +474,000
Joint theater missile defense--demonstration/valida-  tion......         542,619         612,619         +70,000
    Extended air defense test bed [EADTB].......................  ..............          +9,600          +9,600
    Advanced Research Center....................................  ..............          +7,000          +7,000
    ARROW.......................................................  ..............         +15,000         +15,000
    Kauai test facility [KTF]...................................  ..............          +5,000          +5,000
    Pacific missile range facility [PMRF].......................  ..............  ..............  ..............
    Upgrades for theater missile defense........................  ..............         +33,400         +33,400
Theater high-altitude area defense system--TMD-- EMD............         261,480  ..............        -261,480
----------------------------------------------------------------------------------------------------------------

    National missile defense.--The Committee has provided an 
increase of $474,000,000 to the budget request for national 
missile defense, recommending a total appropriation of 
$978,091,000 for this important national priority.
    The increase reflects the Committee's stated support for 
timely development and thorough testing of the national missile 
defense system concept. The Defense Department is currently 
holding a competition for NMD system concepts. Following this 
competition, the Defense Department will be in a better 
position to assess the cost and schedule plans for NMD 
development.
    The Committee believes that the military services and the 
Ballistic Missile Defense Organization must work closely 
together in order to develop the most cost effective national 
missile defense system. The Committee believes that existing 
assets should be considered wherever possible in order to 
develop the most cost-effective initial capability to defend 
the Nation against intercontinental ballistic missiles. With 
this goal in mind, the Committee endorses a careful and 
thorough assessment of the Minuteman booster and other existing 
infrastructure to support the most cost effective and 
expeditious development, testing, deployment, and initial 
operating capability.
    Joint theater missile defense.--The Committee 
recommendation provides $612,619,000 for joint theater missile 
defense, an increase of $70,000,000 to the budget request. Of 
the additional funds, $33,400,000 is provided only to satisfy 
congressionally mandated multiple simultaneous engagement 
requirements. The Committee directs that this increase shall be 
used only to support upgrade of the Pacific Missile Range 
Facility as required to meet its role as the test and 
evaluation range for the Navy's tactical ballistic missile 
defense programs.
    Advanced research center.--The Committee supports the 
efforts being performed at the Space and Strategic Defense 
Command's Advanced Research Center [ARC]. The ARC continues to 
be a valuable tool in support of the Army's development of both 
theater and national missile defense systems. Therefore, the 
Committee recommends an increase of $7,000,000, providing a 
total of at least $18,000,000 to fund the SSDC's ARC.

                           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 outyear 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 
outyear transition commitments; or can be deferred without 
adversely affecting related program developments.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Government/industry cosponsorship of university re-  search.....          14,713           9,713          -5,000
Next generation internet........................................          40,000          10,000         -30,000
Biological warfare defense......................................          61,600          55,100          -6,500
Tactical technology.............................................         157,329         158,329          +1,000
    Compact lasers..............................................  ..............          -3,000          -3,000
    Chemically specific detection...............................  ..............          -3,000          -3,000
    Center of Excellence for Research in Ocean Sciences \1\.....  ..............          +7,000          +7,000
Joint Warfighting Program.......................................          14,172           9,172          -5,000
Commercial Technology Insertion Program.........................          47,889          20,000         -27,889
Command, control, and communications systems....................         163,800         153,800         -10,000
    JFACC phase 3 capabilities..................................  ..............         -10,000         -10,000
Marine technology...............................................          69,143          21,943         -47,200
    Arsenal ship................................................  ..............         -47,200         -47,200
Joint Wargaming Simulation Management Office....................          71,338          66,338          -5,000
Joint Theater Air and Missile Defense Organization..............          23,100          12,900         -10,200
    Maintain requirements section of master plan................  ..............         -10,200         -10,200
Partnership for Peace activities................................           1,993  ..............          -1,993
----------------------------------------------------------------------------------------------------------------
\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 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]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 1998 budget       Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
Materials and electronics technology.........................         192,192          224,692          +32,500 
    Seamless high off-chip connectivity  [SHOCC] \1\.........  ...............          +7,500           +7,500 
    Hard carbon based coatings \1\...........................  ...............          +1,000           +1,000 
    Multitechnology integration in mixed mode electronics....  ...............          +9,000           +9,000 
    Life support trauma and transport........................  ...............          +4,000           +4,000 
    3-D electronics..........................................  ...............          +5,000           +5,000 
    Cryogenic electronics....................................  ...............          +6,000           +6,000 
Chemical and biological defense program......................          60,023           66,023           +6,000 
    SAFEGUARD................................................  ...............          +6,000           +6,000 
Demining.....................................................           7,663           18,063          +10,400 
    Humanitarian demining technologies.......................  ...............         +10,400          +10,400 
    Mechanical clearance support.............................  ...............          (1,000)          (1,000)
    Remote area disassembly vehicle..........................  ...............          (3,000)          (3,000)
Joint DOD-DOE munitions technology development...............          16,141           17,700           +1,559 
    Program increase.........................................  ...............          +1,559           +1,559 
Special technical support....................................          11,750           14,750           +3,000 
    Evaluating Maritime Combatant Craft Equipment Program....  ...............          +3,000           +3,000 
Generic logistics R&D technology demonstration...............          17,267           24,867           +7,600 
    Computer-assisted technology transfer....................  ...............          +7,600           +7,600 
Strategic Environmental Research Program.....................          54,874           57,874           +3,000 
    Green energetics.........................................  ...............          +3,000           +3,000 
Agile port demonstration.....................................  ...............          10,000          +10,000 
Cooperative DOD/VA medical research..........................  ...............          15,000          +15,000 
Electric vehicles............................................  ...............          15,000          +15,000 
Land warfare technology......................................          82,580           81,980             -600 
    Active structural control................................  ...............          +4,400           +4,400 
    Small unit operations \2\................................  ...............          -5,000           -5,000 
Environmental Security Technical Certification Program.......          15,164           20,164           +5,000 
    Climate Change Fuel Cell Program.........................  ...............          +5,000           +5,000 
Defense support activities...................................           5,992            8,992           +3,000 
    Commodity Management System Consolidation Program........  ...............          +3,000           +3,000 
Defense reconnaissance support activities (space)............          49,403           57,403           +8,000 
    Pacific Disaster Center..................................  ...............          +8,000           +8,000 
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Authorization adjustments'' heading of this
  report section.                                                                                               
\2\ Program reductions as described under the heading ``Program reductions and deferrals.''                     

    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 1998.

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                  1998 budget      Committee       Change from  
                             Item                                  estimate      recommendation  budget estimate
----------------------------------------------------------------------------------------------------------------
University research initiatives...............................         237,788         251,788          +14,000 
    DEPSCoR...................................................  ..............         (20,000)         +10,000 
    Southern Observatory for Astronomical Research [SOAR] \1\.  ..............          +4,000           +4,000 
Computing systems and communications technology...............         341,752         344,252           +2,500 
    Reuse technology adoption.................................  ..............          +2,500           +2,500 
Integrated command and control technology.....................          37,000          55,000          +18,000 
    Flat Panel Display Program................................  ..............         +18,000          +18,000 
    High-definition optoelectric digital camera \1\...........  ..............          (2,000)          (2,000)
Defense Special Weapons Agency................................         211,971         226,971          +15,000 
    Nuclear weapons effects core competencies.................  ..............         +15,000          +15,000 
Counterterror technical support...............................          34,863          40,863           +6,000 
    Pulsed fast neutron analysis [PFNA].......................  ..............          +3,000           +3,000 
    Antibiological device [ABD] \1\...........................  ..............          +3,000           +3,000 
Counterproliferation support--advanced develop-  ment.........          58,264          61,264           +3,000 
    HAARP.....................................................  ..............          +3,000           +3,000 
Verification technology demonstration.........................          83,370          73,370          -10,000 
    Caribbean radiation early warning system \1\..............  ..............          (3,000)          (3,000)
Advanced electronics technologies.............................         277,044         295,044          +18,000 
    Lithographic and Alternative Semiconductor Processing                                                       
     Techniques [LAST] Center.................................  ..............         +23,000          +23,000 
    Point source x-ray lithography............................  ..............          +3,000           +3,000 
    MT-06 program reduction...................................  ..............          -3,000           -3,000 
    Defense Techlink rural technology transfer project \1\....  ..............          +1,000           +1,000 
    Center for Advanced Microstructures Devices [CAMD] \1\....  ..............          +4,000           +4,000 
    MAFET \2\.................................................  ..............         -10,000          -10,000 
    Institute for Advanced Flexible Manufacturing.............  ..............          (4,000)          (4,000)
Advanced concept technology demonstrations....................         121,076         101,076          -20,000 
High-performance computing modernization......................         126,211         151,211          +25,000 
    Operation, maintenance, and upgrade of supercomputers                                                       
     purchased with DOD RDT&E  funds..........................  ..............         +25,000          +25,000 
Sensor and guidance technology................................         166,855         162,855           -4,000 
    Large millimeter wave telescope [LMT].....................  ..............          +3,000           +3,000 
    Tactical Radar Program \2\................................  ..............          -7,000           -7,000 
Dual Use Applications Program.................................         225,000         125,000         -100,000 
Joint Robotics Program........................................          23,196          32,196           +9,000 
    UGV/VTC development.......................................  ..............          +9,000           +9,000 
Advanced Sensor Applications Program..........................          15,379          18,379           +3,000 
    HAARP.....................................................  ..............          +3,000           +3,000 
CALS initiative...............................................           1,916           5,916           +4,000 
    CALS integrated data environment [IDE]....................  ..............          +4,000           +4,000 
ASAT..........................................................  ..............          50,000          +50,000 
Technical studies, support, and analysis......................          38,376          30,376           -8,000 
Management headquarters (auxiliary forces)....................           1,926           7,626           +5,700 
    Command Intelligence Architecture/Planning Program [CIAP].  ..............          +5,700           +5,700 
Special operations tactical systems development...............          73,073          75,773           +2,700 
    Remote act. munitions.....................................  ..............          +1,000           +1,000 
    Helmet....................................................  ..............          +1,700           +1,700 
Special operations intelligence systems development...........           4,914           8,914           +4,000 
    JTWS......................................................  ..............          +4,000           +4,000 
SOF operational enhancements..................................          26,357          17,757           -8,600 
    .50 caliber ball ammo.....................................  ..............            +400             +400 
    Program adjustment \2\....................................  ..............          -9,000           -9,000 
----------------------------------------------------------------------------------------------------------------
\1\ Increase reflects Committee recommendations as outlined in the ``Program and project funding increases''    
  heading of this report section.                                                                               
\2\ Program reductions as described under the heading ``Program reductions and deferrals.''                     

             DEFENSE AIRBORNE RECONNAISSANCE OFFICE [DARO]

    Since 1979, Congress has provided more than $3,000,000,000 
to the Department of Defense for the purpose of developing 
unmanned aerial vehicles [UAV]. To date, no system has reached 
full operational capability. Despite this track record, the 
Department continues to spend almost 40 percent of its airborne 
reconnaissance budget on UAV development, blatantly ignoring 
congressional direction with regard to rivet joint reengining, 
U-2 upgrades, SR-71 funding, and other manned reconnaissance 
requirements. The Committee is unaware of any other major DOD 
program where current, proven systems that are used on a daily 
basis throughout the world have been consistently sacrificed 
for almost 20 years' worth of yet-to-be realized technology 
development.
    The Committee does not disagree with the potential value of 
UAV's; however, the Committee is discouraged with results of 
the remaining three UAV ACTD programs and believes it is time 
to review DOD's entire UAV strategy. Consequently, the 
Committee places a 1-year moratorium on the initiation of any 
ACTD or other type of new start for UAV's. During this period, 
OSD and the services are directed to develop a strategy for the 
development and acquisition of UAV systems that are cost 
effective and satisfy the core priority requirements of each 
service. This new strategy should be submitted with the fiscal 
year 1999 budget submission. The Committee looks forward to 
working with the Department to establish a more coherent and 
less advanced technology driven program that, once the systems 
are proven, can be built upon to provide the value envisioned 
over the past 20 years.
    High band subsystem.--The Committee understands that 
testing of the high band subsystem of joint SIGINT avionics 
family [JSAF] has been delayed by at least 5 months due to 
contractor slips in upgrades to the EP-3 test platform. The 
Committee encourages the Department to closely monitor this 
situation to ensure that testing of the subsystem commences not 
later than December 15, 1997. The Committee expects to be kept 
fully apprised of the status of this program.

                    SUMMARY OF COMMITTEE ADJUSTMENTS

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Outrider UAV....................................................          87,497  ..............         -87,497
Global hawk advanced development................................          16,171  ..............         -16,171
JSAF high band subsystem digitization...........................  ..............           5,000          +5,000
----------------------------------------------------------------------------------------------------------------

    Outrider UAV.--The Committee denies funding for this 
program and directs that it be terminated. The Committee also 
recommends a rescission of $20,000,000 in fiscal year 1997 
funds.
    Global Hawk advanced development.--The Committee denies 
funding for any JSAF development, integration, and testing on 
the Global Hawk.
    Joint SIGINT avionics family [JSAF].--The Committee is 
providing an additional $5,000,000 for risk reduction efforts 
to develop a digital capability in the high band subsystem.

                     COMMITTEE RECOMMENDED PROGRAM

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

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                                    Change from 
                              Item                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
    RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, DEFENSE-WIDE                                                   
                                                                                                                
BASIC RESEARCH:                                                   ..............                                
    IN-HOUSE LABORATORY INDEPENDENT RESEARCH....................           2,169           2,169  ..............
    DEFENSE RESEARCH SCIENCES...................................          76,009          76,009  ..............
    UNIVERSITY RESEARCH INITIATIVES.............................         237,788         251,788         +14,000
    GOVERNMENT/INDUSTRY COSPONSORSHIP OF UNIV RESEARCH..........          14,713           9,713          -5,000
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....................          25,190          25,190  ..............
                                                                 -----------------------------------------------
      TOTAL, BASIC RESEARCH.....................................         355,869         364,869          +9,000
                                                                 ===============================================
EXPLORATORY DEVELOPMENT:                                                                                        
    NEXT GENERATION INTERNET....................................          40,000          10,000         -30,000
    SUPPORT TECHNOLOGIES--APPLIED RESEARCH......................         101,932         115,932         +14,000
    MEDICAL FREE ELECTRON LASER.................................          20,841          20,841  ..............
    HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCU) SC......          11,485          11,485  ..............
    LINCOLN LABORATORY RESEARCH PROGRAM.........................          20,474          20,474  ..............
    COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY.............         341,752         344,252          +2,500
    BIOLOGICAL WARFARE DEFENSE..................................          61,600          55,100          -6,500
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....................          60,023          66,023          +6,000
    TACTICAL TECHNOLOGY.........................................         157,329         158,329          +1,000
    INTEGRATED COMMAND AND CONTROL TECHNOLOGY...................          37,000          55,000         +18,000
    MATERIALS AND ELECTRONICS TECHNOLOGY........................         192,192         224,692         +32,500
    DEFENSE SPECIAL WEAPONS AGENCY..............................         211,971         226,971         +15,000
    MEDICAL TECHNOLOGY..........................................           8,987           8,987  ..............
    COMMAND AND CONTROL RESEARCH................................           1,937           1,937  ..............
                                                                 -----------------------------------------------
      TOTAL, EXPLORATORY DEVELOPMENT............................       1,267,523       1,320,023         +52,500
                                                                 ===============================================
ADVANCED DEVELOPMENT:                                                                                           
    MEDICAL ADVANCED TECHNOLOGY.................................           2,778           2,778  ..............
    EXPLOSIVES DEMILITARIZATION TECHNOLOGY......................          12,259          12,259  ..............
    DEMINING....................................................           7,663          18,063         +10,400
    ALTERNATIVE TO LANDMINES....................................           2,990           2,990  ..............
    COUNTERTERROR TECHNICAL SUPPORT.............................          34,863          40,863          +6,000
    COUNTERPROLIFERATION SUPPORT--ADV DEV.......................          58,264          61,264          +3,000
    SUPPORT TECHNOLOGIES--ADVANCED TECHNOLOGY DEVELOPMEN........         147,557         351,957        +204,400
    JOINT DOD-DOE MUNITIONS TECHNOLOGY DEVELOPMENT..............          16,141          17,700          +1,559
    AUTOMATIC TARGET RECOGNITION................................           4,789           4,789  ..............
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--ADVANCED DEV.......          41,223          41,223  ..............
    SPECIAL TECHNICAL SUPPORT...................................          11,750          14,750          +3,000
    VERIFICATION TECHNOLOGY DEMONSTRATION.......................          83,370          73,370         -10,000
    GENERIC LOGISTICS R&D TECHNOLOGY DEMONSTRATIONS.............          17,267          24,867          +7,600
    STRATEGIC ENVIRONMENTAL RESEARCH PRO-  GRAM.................          54,874          57,874          +3,000
    JOINT WARFIGHTING PROGRAM...................................          14,172           9,172          -5,000
    AGILE PORT DEMONSTRATION....................................  ..............          10,000         +10,000
    COOPERATIVE DOD/VA MEDICAL RESEARCH.........................  ..............          15,000         +15,000
    ADVANCED ELECTRONICS TECHNOLOGIES...........................         277,044         295,044         +18,000
    MARITIME TECHNOLOGY.........................................          37,408          37,408  ..............
    ELECTRIC VEHICLES...........................................  ..............          15,000         +15,000
    ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS..................         121,076         101,076         -20,000
    COMMERCIAL TECHNOLOGY INSERTION PROGRAM.....................          47,889          20,000         -27,889
    ELECTRONIC COMMERCE RESOURCE CENTERS........................          14,972          14,972  ..............
    HIGH PERFORMANCE COMPUTING MODERNIZATION PROGRAM............         126,211         151,211         +25,000
    COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS.................         163,800         153,800         -10,000
    COMMUNICATION AND SIMULATION TECHNOLOGY.....................          75,938          75,938  ..............
    SENSOR AND GUIDANCE TECHNOLOGY..............................         166,855         162,855          -4,000
    MARINE TECHNOLOGY...........................................          69,143          21,943         -47,200
    LAND WARFARE TECHNOLOGY.....................................          82,580          81,980            -600
    CLASSIFIED DARPA PROGRAMS...................................         134,977         134,977  ..............
    JOINT STRIKE FIGHTER (JSF)--DEM/VAL.........................          23,900          23,900  ..............
    DUAL USE APPLICATIONS PROGRAMS..............................         225,000         125,000        -100,000
    JOINT WARGAMING SIMULATION MANAGEMENT OFFICE................          71,338          66,338         8-5,000
                                                                 -----------------------------------------------
        TOTAL, ADVANCED DEVELOPMENT.............................       2,148,091       2,240,361         +92,270
                                                                 ===============================================
DEMONSTRATION & VALIDATION:                                                                                     
    PHYSICAL SECURITY EQUIPMENT.................................          31,553          31,553  ..............
    INTEGRATED DIAGNOSTICS......................................           6,514           6,514  ..............
    JOINT ROBOTICS PROGRAM......................................          23,196          32,196          +9,000
    ADVANCED SENSOR APPLICATIONS PROGRAM........................          15,379          18,379          +3,000
    CALS INITIATIVE.............................................           1,916           5,916          +4,000
    NATO RESEARCH AND DEVELOPMENT...............................          13,584          13,584  ..............
    ENVIRONMENTAL SECURITY TECHNICAL CERTIFICATION PROGRAM......          15,164          20,164          +5,000
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD--DEM/........         294,647         353,427         +58,780
    NAVY THEATER WIDE MISSILE DEFENSE--DEM/VAL..................         194,898         274,898         +80,000
    MEADS CONCEPTS--DEM/VAL.....................................          47,956          47,956  ..............
    BOOST PHASE INTERCEPT THEATER MISSILE DEFENSE ACQUISIT......          12,885          17,885          +5,000
    NATIONAL MISSILE DEFENSE--DEM/VAL...........................         504,091         978,091        +474,000
    JOINT THEATER MISSILE DEFENSE--DEM/VAL......................         542,619         612,619         +70,000
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--DEM/VAL............          55,145          55,145  ..............
    ASAT........................................................  ..............          50,000         +50,000
                                                                 -----------------------------------------------
      TOTAL, DEMONSTRATION & VALIDATION.........................       1,759,547       2,518,327        +758,780
                                                                 ===============================================
ENGINEERING & MANUFACTURING DEVEL:                                                                              
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--EMD................         120,535         120,535  ..............
    JOINT TACTICAL INFORMATION DISTRIBUTION SYSTEM (JTIDS)......          55,429          55,429  ..............
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD--EMD.........         261,480  ..............        -261,480
    PATRIOT PAC-3 THEATER MISSILE DEFENSE ACQUISITION--EM.......         206,057         206,057  ..............
    NAVY AREA THEATER MISSILE DEFENSE--EMD......................         267,822         267,822  ..............
                                                                 -----------------------------------------------
      TOTAL, ENGINEERING & MANUFACTURING DEVELOPMENT............         911,323         649,843        -261,480
                                                                 ===============================================
RDT&E MANAGEMENT SUPPORT:                                                                                       
    TECHNICAL STUDIES, SUPPORT AND ANALYSIS.....................          38,376          30,376          -8,000
    TECHNICAL SUPPORT TO USD(A)--CRITICAL TECHNOLOGY............           2,690           2,690  ..............
    BLACK LIGHT.................................................           4,683           4,683  ..............
    FOREIGN MATERIAL ACQUISITION AND EXPLOITA-  TION............          37,474          37,474  ..............
    JOINT THEATER AIR AND MISSILE DEFENSE ORGANIZATION..........          23,100          12,900         -10,200
    CLASSIFIED PROGRAM USD(P)...................................           5,979           5,979  ..............
    COUNTERPROLIFERATION SUPPORT................................           7,047           7,047  ..............
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....................          18,730          18,730  ..............
    CLASSIFIED PROGRAMS--C\3\I..................................             357             357  ..............
    SMALL BUSINESS INNOVATIVE RESEARCH ADMINISTRATION...........           1,738           1,738  ..............
    DEFENSE SUPPORT ACTIVITIES..................................           5,992           8,992          +3,000
    DEFENSE TECHNICAL INFORMATION CENTER........................          46,930          46,930  ..............
    R&D IN SUPPORT OF DOD ENLISTMENT, TESTING AND EVALUATI......           8,285           8,285  ..............
    MANAGEMENT HEADQUARTERS (RESEARCH AND DEVELOPMENT)..........          39,193          39,193  ..............
                                                                 -----------------------------------------------
        TOTAL, RDT&E MANAGEMENT SUPPORT.........................         240,574         225,374         -15,200
                                                                 ===============================================
OPERATIONAL SYSTEMS DEVELOPMENT:                                                                                
    C\3\ INTEROPERABILITY.......................................          25,670          25,670  ..............
    JOINT ANALYTICAL MODEL IMPROVEMENT PRO-  GRAM...............           2,186           2,186  ..............
    NATIONAL MILITARY COMMAND SYSTEM-WIDE SUPPORT...............           2,064           2,064  ..............
    JOINT/DEFENSE INFORMATION SYSTEMS ENGINEERING AND INTE......           4,721           4,721  ..............
    LONG-HAUL COMMUNICATIONS (DCS)..............................          14,520          14,520  ..............
    SUPPORT OF THE NATIONAL COMMUNICATIONS SYSTEM...............           4,552           4,552  ..............
    MINIMUM ESSENTIAL EMERGENCY COMMUNICATIONS NETWORK (ME......           2,381           2,381  ..............
    INFORMATION SYSTEMS SECURITY PROGRAM........................         258,593         258,593  ..............
    C\4\I FOR THE WARRIOR.......................................           5,554           5,554  ..............
    DEFENSE IMAGERY AND MAPPING PROGRAM.........................         109,430         109,430  ..............
    FOREIGN COUNTERINTELLIGENCE ACTIVITIES......................             419             419  ..............
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.....................           4,460           4,460  ..............
    DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES (SPACE)...........          49,403          57,403          +8,000
    C\3\I INTELLIGENCE PROGRAMS.................................           6,249           6,249  ..............
    TACTICAL UAVS...............................................         122,004          34,507         -87,497
    ENDURANCE UAVS..............................................         216,712         216,712  ..............
    AIRBORNE RECONNAISSANCE SYSTEMS.............................         212,961         201,790         -11,171
    MANNED RECONNAISSANCE SYSTEMS...............................          27,784          27,784  ..............
    DISTRIBUTED COMMON GROUND SYSTEMS...........................          37,653          37,653  ..............
    DARP MANAGEMENT SUPPORT.....................................          21,543          21,543  ..............
    TACTICAL CRYPTOLOGIC ACTIVITIES.............................          96,667          96,667  ..............
    MANAGEMENT HEADQUARTERS (AUXILIARY  FORCES).................           1,926           7,626          +5,700
    INDUSTRIAL PREPAREDNESS.....................................           8,720           8,720  ..............
    MANAGEMENT HEADQUARTERS (OJCS)..............................          10,035          10,035  ..............
    JOINT SIMULATION SYSTEM.....................................          24,321          24,321  ..............
    PARTNERSHIP FOR PEACE ACTIVITIES............................           1,993  ..............          -1,993
    SPECIAL OPERATIONS TECHNOLOGY DEVELOP-  MENT................           4,161           4,161  ..............
    SPECIAL OPERATIONS ADVANCED TECHNOLOGY DEVELOPMENT..........           8,009           8,009  ..............
    SPECIAL OPERATIONS TACTICAL SYSTEMS DEVELOPMENT.............          73,073          75,773          +2,700
    SPECIAL OPERATIONS INTELLIGENCE SYSTEMS DEVELOPMENT.........           4,914           8,914          +4,000
    SOF MEDICAL TECHNOLOGY DEVELOPMENT..........................           2,029           2,029  ..............
    SOF OPERATIONAL ENHANCEMENTS................................          26,357          17,757          -8,600
    CLASSIFIED PROGRAM..........................................         995,689       1,036,689         +41,000
                                                                 -----------------------------------------------
      TOTAL, OPERATIONAL SYSTEMS DEVELOPMENT....................       2,386,753       2,338,892         -47,861
                                                                 ===============================================
ECONOMIC ASSUMPTIONS............................................  ..............         -49,000         -49,000
                                                                 ===============================================
      TOTAL, RESEARCH, DEVELOPMENT, TEST, AND EVALUATION,                                                       
       DEFENSE-WIDE.............................................       9,069,680       9,608,689        +539,009
----------------------------------------------------------------------------------------------------------------

               Developmental Test and Evaluation, Defense

Appropriations, 1997....................................    $282,038,000
Budget estimate, 1998...................................     268,183,000
Committee recommendation................................     251,183,000

    The Committee recommends an appropriation of $251,183,000 
for the ``Developmental test and evaluation, defense'' account, 
a decrease of $17,000,000 from the budget request.

                    Committee Recommended Adjustment

    Central test and evaluation investment program.--The 
Committee recommends $116,353,000, a decrease of $15,000,000 to 
the budget request based on delayed execution of fiscal year 
1997 projects.

                Operational Test and Evaluation, Defense

Appropriations, 1997....................................     $24,968,000
Budget estimate, 1998...................................      23,384,000
Committee recommendation................................      31,384,000

    The Committee recommends an appropriation of $31,384,000 
for the ``Operational test and evaluation, defense'' account, 
an increase of $8,000,000 to the budget request.

                    Committee Recommended Adjustment

    Operational test and evaluation.--The Committee recommends 
$21,187,000, which includes an increase of $8,000,000 only for 
the operational field assessment program.
                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

    The Committee recommends appropriations totaling 
$1,191,426,000 for title V, revolving and management funds. 
This is $675,300,000 below 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, 1997....................................    $947,900,000
Budget estimate, 1998...................................     971,952,000
Committee recommendation................................     871,952,000

    The Committee's recommendations provide $871,952,000 for 
the defense working capital fund, a reduction of $100,000,000. 
The Committee directs that all revenues resulting from the DOD 
policy that increased the price of tobacco products sold in the 
Defense Commissary Agency [DeCA] be immediately applied to 
costs incurred by DeCA operations currently funded in this 
account. Additionally, the Committee expects that in the 
future, DOD will consult with the congressional defense 
committees prior to making unilateral decisions regarding fund 
distributions of this magnitude.

                     national defense sealift fund

Appropriations, 1997....................................  $1,428,002,000
Budget estimate, 1998...................................   1,191,426,000
Committee recommendation................................     516,126,000

    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 $302,000,000 for Ready Reserve Force 
and $889,426,000 for acquisition activities in fiscal year 
1998.

                   COMMITTEE RECOMMENDED ADJUSTMENTS

    Acquisition.--The Department's budget request includes 
$889,426,000 for the construction of sealift ships for fiscal 
year 1998. Of this amount, $581,300,000 would be for the 
procurement of two large medium speed roll-on/roll-off [LMSR] 
ships, $131,500,000 for the payment of cost growth in prior-
year LMSR procurement, $70,000,000 advance procurement for a 
new construction LMSR in fiscal year 1999, and $30,100,000 for 
the completion of prior-year ships.
    The Committee follows the Senate Armed Services Committee's 
decision to undertake a construction pause on the LMSR program 
until such time as the Department verifies the appropriate 
prepositioning policy for the Army. In this light, the 
Committee recommends providing the authorized level of 
$238,126,000 for acquisition, a reduction of $651,300,000 from 
the budget request.

                           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                                  1998 budget      Committee        budget    
                                                                     estimate     recommendation     estimate   
----------------------------------------------------------------------------------------------------------------
Ready Reserve Force:                                                                                            
    Prior-year contract savings.................................  ..............         -25,000         -25,000
    MPF recapitalization study..................................  ..............           1,000          +1,000
----------------------------------------------------------------------------------------------------------------

                                TITLE VI

               OTHER DEPARTMENT OF DEFENSE APPROPRIATIONS

           Chemical Agents and Munitions Destruction, Defense

Appropriations, 1997....................................    $758,447,000
Budget estimate, 1998...................................     620,700,000
Committee recommendation................................     609,700,000

    The Committee recommends an appropriation of $609,700,000 
for the ``Chemical agents and munitions destruction, defense'' 
account for fiscal year 1998, a decrease of $11,000,000 to the 
budget estimate.
    The Chemical Stockpile Disposal Program [CSDP], mandated by 
Congress in section 1412 of the 1986 Defense Authorization Act 
(Public Law 99-145), directed the Department of Defense to 
destroy the complete unitary chemical stockpile by September 
30, 1994. The Fiscal Year 1989 Defense Authorization Act 
(Public Law 100-456) extended the program completion date to 
April 30, 1997. The Fiscal Year 1992 Defense Authorization Act 
(Public Law 102-190) again extended the program completion date 
to July 31, 1999. Finally, the Fiscal Year 1993 Defense 
Authorization Act (Public Law 102-484) further extended the 
completion date to December 31, 2004.
    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 Department has included 
$66,300,000 for research, development, test and evaluation 
activities of the Chemical Stockpile Disposal Program for 
fiscal year 1998. For fiscal year 1998, the Department has 
budgeted $25,500,000 to conduct research, in parallel with the 
reverse assembly/incineration (baseline) technology, to select 
an alternative technology or technologies to be used at the 
bulk chemical storage sites at Aberdeen, MD, and Newport, IN. 
The Department has also budgeted $40,800,000 for continued 
development, design, purchase, installation, and acceptance 
testing of equipment for the nonstockpile chemical material 
project; and for continued evaluation of nonstockpile disposal 
technologies, and for continued development of nonintrusive 
analysis systems for munitions and their surrounding 
environment.
    The Committee recommends providing $70,300,000, an increase 
of $4,000,000 above the budget request, for CDSP research and 
development activities in fiscal year 1998. The additional 
$4,000,000 is to accelerate the development and deployment of 
the Army's mobile munitions assessment system.

                     budget activity 2--procurement

    Procurement.--The Department has requested $82,200,000 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 $77,200,000 for 
procurement activities in fiscal year 1998, a reduction of 
$5,000,000 from the budget request as authorized by the Senate 
Armed Services Committee.

             budget activity 3--operations and maintenance

    Operation and maintenance.--The fiscal year 1998 budget 
request includes $472,200,000 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 
$467,200,000 a decrease of $5,000,000 below the budget request 
as recommended by the Senate Armed Services Committee.
    Transportation of chemical weapons.--The Committee 
continues to oppose the study of or the actual transportation 
of assembled chemical munitions from or to any of the nine 
stockpile storage sites. In 1983, after extensive studies, the 
Department of Defense reported to Congress that the 
transportation of assembled chemical weapons around the United 
States was not a viable option because of the potential for 
accidents/incidents in populated areas having to be traversed 
during transportation. Further, the studies concluded that the 
condition and stability of the assembled chemical weapons were 
such that the potential for a handling accident/incident was 
also beyond the acceptable levels of risk.
    The Committee notes that now, more than 12 years later, 
nothing has changed that would make a new study of 
transportation anything more than an explication of the 
oblivious. Further, the assemble chemical stockpile is now 12 
years older and thus a new study would most certainly prove 
that the handling/transportation risk would be even greater 
than the unacceptable level in 1983.
    The Committee again includes a general provision which 
directly prohibits the study of or the movement of any chemical 
munitions or agent to Johnston Atoll.
    Economic assumptions.--As explained elsewhere in this 
report, the Department's midyear review has reduced the 
expected inflation rates for fiscal year 1998. The Committee, 
in accordance with data provided by the Department, recommends 
a general reduction of $5,000,000 to the ``Chemical agents and 
munitions destruction, defense'' account and has applied 
$4,000,000 of this reduction to the ``Procurement'' account and 
$1,000,000 to the ``Research and development'' account.
    Future use of the facilities.--The Committee again includes 
a general provision prohibiting the expenditure of any Federal 
funds for the study of the possible future use of these 
facilities. The Committee does not intend this provision to 
apply to the CAMDS facility at Tooele, UT.
    Chemical Stockpile Emergency Preparedness Program 
[CSEPP].--In the 1997 National Defense Authorization Act 
(Public Law 104-21, section 1076) the Congress mandated, and 
the President's signature enacted into law the following:

          ``(a) Report.--Not later than 120 days after the date 
        of the enactment of this Act, the Secretary of the Army 
        shall submit to the Committee on Armed Services of the 
        Senate and the Committee on National Security of the 
        House of Representatives a report assessing the 
        implementation and success of the establishment of 
        site-specific Integrated Product and Process Teams as a 
        management tool for the Chemical Stockpile Emergency 
        Preparedness Program.
          (b) Contingent Mandated Reforms.--If at the end of 
        the 120-day period beginning on the date of the 
        enactment of this Act the Secretary of the Army and the 
        Director of the Federal Emergency Management Agency 
        have been unsuccessful in implementing a site-specific 
        Integrated Product and Process Team with each of the 
        affected States, the Secretary of the Army shall--
          (1) assume full control and responsibility for the 
        Chemical Stockpile Emergency Preparedness Program 
        (eliminating the role of the Director of the Federal 
        Emergency Management Agency as joint manager of the 
        program);
          (2) establish programmatic agreement with each of the 
        affected States regarding program requirements, 
        implementation schedules, training and exercise 
        requirements, and funding (to include direct grants for 
        program support);
          (3) clearly define the goals of the program; and
          (4) establish fiscal constraints for the program.''

    The Committee notes that the 120 days have passed and the 
Secretary of the Army has neither provided the report nor has 
he assumed full control and responsibility for the CSEPP. 
Further, the General Accounting Office has recently published 
its fourth highly critical study of the management and 
accounting weaknesses of CSEPP (GAO/NSIAD-97-91).
    While the continued cooperation of the Army and the Federal 
Emergency Management Agency [FEMA] is vital to the success of 
the CSEPP, the Committee is concerned that these two agencies 
have lost sight of the ultimate goal of this program which 
remains the safety and preparedness of the local communities 
surrounding the eight chemical stockpile sites. The Committee 
is hopeful that while the Army and FEMA negotiate the future 
roles and responsibilities of each of their agencies within the 
CSEPP, that neither loses sight that the local communities are 
the ones who have and will continue to suffer from the 
mismanagement of the CSEPP. The Committee is further hopeful 
that the local communities will have an avenue for input into 
the CSEPP and that their views are taken into consideration in 
the management restructuring process being undertaken by the 
Federal Government.

                         Defense Health Program

Appropriations, 1997.................................... $10,207,308,000
Budget estimate, 1998...................................  10,040,650,000
Budget amendment, 1998..................................     261,000,000
Amended budget estimate, 1998...........................  10,301,650,000
Committee recommendation................................  10,317,675,000

    The Committee's recommendation for the Defense Health 
Program [DHP] provides $10,317,675,000, an amount $16,025,000 
above the amount requested. All recommended adjustments to the 
budget request, including items discussed elsewhere in this 
report, are summarized below:

                    Defense Health Program Shortfall

    The Department originally requested $10,040,650,000 for the 
Defense Health Program [DHP], $274,068,000 of which is for 
procurement. Subsequent to the submission of the President's 
budget to Congress, the administration submitted a budget 
amendment seeking to redress underfunding of the DHP account in 
the fiscal year 1998 budget. The amendment requested that 
Congress shift a total of $261,000,000 in foreign currency 
savings from other accounts to DHP. The amendment retained 
$13,000,000 in foreign currency savings in DHP to fully fund 
the fiscal year 1998 DHP shortfall of $274,000,000. Because of 
the Committee's commitment to fully fund DHP, the realignment 
of these funds has been incorporated into the Committee 
recommendation. Further, the Committee has opted not to 
decrement the DHP by $20,000,000 in inflation savings but, 
instead, directs that the $20,000,000, and Committee increase, 
be provided to the services as illustrated in the table below.
    Once again, the Committee has had to accommodate a 
significant funding shortfall in the Defense Health Program. 
DHP historical trends indicate that funding requirements 
increase annually, yet the amount requested by the Department 
for DHP in fiscal year 1998 was approximately $164,000,000 less 
than the fiscal year 1997 appropriated level. As the Department 
is aware, this Committee places great importance on the welfare 
of the beneficiaries of this program and has always provided 
additional funds when needed. However, this does not provide a 
license for the Department to use that knowledge and 
consistently underfund the program. The Committee deplores the 
failure of the Office of the Assistant Secretary of Defense for 
Health Affairs to effectively manage and budget for this 
critical program. There is no acceptable explanation for a 
second, consecutive year of significant misestimation. The 
Committee expects the Office of the Assistant Secretary of 
Defense for Health Affairs to work closely with the services to 
ensure that this very important program is fully funded in 
fiscal year 1999.
    The table below illustrates the realignment of funds and 
Committee increases to accommodate the above-described 
shortfalls.

                                              SHORTFALL REALIGNMENT                                             
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                     Military      Operation and                
               Funding increases and realignments                    personnel      maintenance   Defense health
----------------------------------------------------------------------------------------------------------------
Foreign currency and inflation savings:                                                                         
    Army........................................................         -37,000        -116,000        153,000 
    Navy........................................................          -9,000         -23,000         32,000 
    Marine Corps................................................          -4,000          -4,000          8,000 
    Air Force...................................................         -12,000         -43,000         55,000 
    Defense-wide................................................  ..............         -13,000         13,000 
    Defense health (foreign currency savings)...................  ..............  ..............        (13,000)
    Defense health (inflation savings)..........................  ..............  ..............        (20,000)
    Committee increase..........................................  ..............  ..............         (1,500)
                                                                 -----------------------------------------------
      Total.....................................................  ..............  ..............        261,000 
                                                                 ===============================================
Allocation of inflation savings (Committee increase):                                                           
    Army........................................................  ..............  ..............        (10,500)
    Navy........................................................  ..............  ..............         (4,500)
    Air Force...................................................  ..............  ..............         (6,500)
                                                                 -----------------------------------------------
      Total.....................................................  ..............  ..............        (21,500)
----------------------------------------------------------------------------------------------------------------

    Other adjustments to the budget request, including those 
items discussed elsewhere in this report, are summarized below:

                        [In thousands of dollars]

                                                               Committee
        Program                                               adjustment

Health Professional Scholarship Program (tax liability).......   -70,800
Hepatitis A vaccine...........................................    25,000
Military health services system information management........    10,000
Uniformed Services University of the Health Sciences..........    13,000
Pacific Island Health Care Program............................     5,000
Brown tree snakes.............................................     1,000
Cancer Control Program........................................     8,925
Army Research Institute.......................................     5,400
Committee increase............................................     1,500
Military nursing research.....................................     5,000
Disaster management training..................................     5,000
Holloman Air Force Base.......................................     7,000
                    --------------------------------------------------------------
                    ____________________________________________________

      Total adjustments.......................................    16,025
Recommended appropriation.....................................10,317,675

    Health Professional Scholarship Program [HPSP] tax 
liability.--The Committee denies funding in the amount of 
$70,800,000 in DHP operations and maintenance for the HPSP tax 
libability. Funding in the amount of $25,600,000 in the Reserve 
personnel accounts for HPSP is also denied.
    Hepatitis A vaccine.--The Committee has provided an 
additional $25,000,000 to acquire the hepatitis A vaccine.
    Defense Breast Cancer Research Program.--The Committee 
recommends $175,000,000 to continue the highly successful Army 
peer-reviewed Breast Cancer Research Program. These funds are 
provided in the ``Research, development, test, and evaluation, 
Army'' appropriation.
    Digital mobile mammography.--This activity is an 
inextricable component of breast cancer research that serves 
the needs of active and retired military personnel and their 
beneficiaries. The Committee fully supports the Department's 
efforts in this area and strongly encourages its continuation.
    Military health services system information management.--
The Committee supports attempts to create an information 
management system that provides ready access to complete 
medical records of beneficiaries, identify service member 
health problems and solutions for the duration of a service 
member's eligibility for military medical care. For these 
reasons, the Committee is providing an additional $10,000,000 
to implement some of these promising commercial-off-the-shelf 
technologies.
    Mountain Home AFB pharmacy.--The Department shall provide 
funding equal to the fiscal year 1996 level for the Mountain 
Home AFB pharmacy.
    Uniformed Services University of the Health Sciences 
[USUHS].--The Committee recommends an addition of $13,000,000 
to fully fund the requirements of USUHS, noting that a 
reduction was assumed in the budget request in anticipation 
that the university would be closed. Of this amount, $2,000,000 
is to be used in support of the Graduate School of Nursing 
advanced nursing programs that contribute to the readiness and 
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.
    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.
    Cancer Control Program.--Recognizing the impact of base 
closure on this medically underserved area, the Committee has 
provided $8,925,000 to the Charleston Navy Hospital only for 
the continuation of their efforts to establish a cancer control 
program.
    Wallace-Kettering Neuroscience Institute.--The Committee is 
aware of the excellent work being performed at the Wallace-
Kettering Neuroscience Institute with regard to treatments to 
those suffering from neurological diseases and disorders and 
encourages the Department to consider funding a portion of this 
effort.
    Postdoctoral education.--The Department is again encouraged 
to increase postdoctoral training efforts for psychologists in 
those military medical centers where independent departments of 
psychology exist.
    Army Research Institute for Behavioral and Social Sciences 
[ARI].--ARI conducts personnel and behavioral research in such 
areas as sexual harassment, multiracial and gender integration 
and leadership development. The Committee understands that the 
ARI has been considered for elimination. The Committee believes 
that ARI is an important tool and recommends an additional 
$5,400,000 for this activity.
    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 research.--The Committee recommends 
$5,000,000 for research related to health maintenance and 
promotion, particularly in the operational setting, domestic 
violence, alternative health care delivery models, and 
enhancement of military nursing.
    Disaster management training.--The Committee recommends an 
additional $5,000,000 for the continuation of a Center of 
Excellence in Disaster Management and Humanitarian Assistance 
Program with Tripler Army Medical Center.
    VA/DOD distance learning pilot project.--The Committee 
encourages the DOD to continue the VA/DOD distance learning 
pilot project to transition clinical nurse specialists to the 
role of nurse practitioners. This collaborative program with 
the USUHS Graduate School of Nursing will increase the number 
of primary care providers.
    Holloman Air Force Base.--The Committee supports the 
innovative cooperation between Holloman Air Force Base and 
Gerald Champion Memorial Hospital in Alamogordo to provide 
health care to military and civilian personnel. The Committee 
is providing $7,000,000 to facilitate costs associated with 
this integration.
    Smoking cessation.--The Committee urges the Department to 
ensure the services implement a robust and coordinated plan for 
smoking cessation and directs the Assistant Secretary of 
Defense for Health Affairs to provide a report regarding 
current plans and programs for smoking cessation not later than 
March 15, 1998.
    Health sciences centers.--The Committee notes that the 
University of Colorado Health Sciences Center, a major TRICARE 
health provider that serves active duty members, retirees, and 
their families, plans to institute eye and cardiovascular 
research centers. The Committee recommends that the Department 
work with the health sciences centers to seek opportunities for 
the eye and cardiovascular research centers to benefit DHP 
beneficiaries.
    Independent research institutes.--The Committee encourages 
the Department of Defense open eligibility for Department funds 
in support of research-related training and equipment to not-
for-profit research institutes that conduct basic and clinical 
research in the biomedical and behavioral sciences.
    Dental research.--The Committee is pleased with the 
progress of dental research in the services and encourages the 
continuation of programs which advance the preventive and 
reconstructive applications of military dentistry.
    Fort Drum.--As provided in the Senate-reported DOD 
authorization bill, the Committee directs that within funds 
available for DHP in the procurement account, $4,000,000 be 
used for the Diagnostic Center of Excellence for Breast and 
Prostate Cancer at Fort Drum.
    Hepatitis C.--The Department of Defense shall determine 
rates of hepatitis C infection among personnel who served in 
deployments overseas or who received blood plasma products from 
individuals infected with hepatitis C and provide counseling 
and access to treatment for personnel as needed.

         Drug Interdiction and Counterdrug Activities, Defense

Appropriations, 1997....................................    $807,800,000
Budget estimate, 1998...................................     652,582,000
Committee recommendation................................     691,482,000

    The Committee recommends an appropriation of $691,482,000 
in title VI, Counternarcotics and Drug Interdiction Program for 
fiscal year 1998, an amount $38,900,000 above the requested 
fiscal year 1998 level.

                    Summary of Committee Adjustments

    National Guard activities.--The Committee recognizes the 
valuable contributions the National Guard makes to the 
counterdrug effort and provides an additional $25,000,000. This 
matter is further addressed in the ``Operations and 
maintenance, National Guard'' account
    Civil Air Patrol.--Funds made available to the Civil Air 
Patrol [CAP] in the fiscal year 1998 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 the 
Federal, State, and local government agencies for use of these 
funds.
    Gulf States counterdrug initiative.--The Committee has 
provided an additional $6,700,000 to support the Gulf States 
counterdrug initiative, $800,000 of which is for the Regional 
Counterdrug Training Academy.
    The Committee is concerned with regard to plans to transfer 
the C\3\I portion of this program to the Defense Information 
Systems Agency and directs that this transfer be delayed until 
the effects of such a transfer can be determined. In this 
regard, the Department is directed to provide a report to the 
congressional defense committees by January 15, 1998, setting 
forth the reason for this transfer and what benefit, if any, to 
GSCI such a transfer would achieve.
    Regional police information system.--The Committee has 
provided an additional $3,000,000 for this system.
    National Interagency Counterdrug Institute [NICI].--NICI is 
the only Federal activity that provides joint counterdrug 
training for military and law enforcement leaders and related 
information sharing and analytical services. The Committee 
supports this program and encourages DOD to provide up to 
$3,900,000 in available funds for this vital operation.
    Riverine interdiction initiative.--The Committee supports 
the Senate authorizing committee's action regarding this 
initiative and provides an additional $4,200,000.

                    Office of the Inspector General

Appropriations, 1997....................................    $139,157,000
Budget estimate, 1998...................................     138,380,000
Committee recommendation................................     135,380,000

    The Committee recommends an appropriation of $135,380,000 
for fiscal year 1998. This amount is $3,000,000 below the 
budget request. The Committee directs the Office of the 
Inspector General to derive efficiencies through a refocusing 
of its investigation efforts toward areas that will provide 
tangible improvements to the Department of Defense 
organization.
                               TITLE VII

                            RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

Appropriations, 1997....................................    $196,400,000
Budget estimate, 1998...................................     196,900,000
Committee recommendation................................     196,900,000

    The Committee recommends $196,900,000, 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, 1997....................................    $129,164,000
Budget estimate, 1998...................................     122,580,000
Committee recommendation................................     122,580,000

    The Committee recommends $122,580,000 for the community 
management staff.

                 National Security Education Trust Fund

Appropriations, 1997....................................      $5,100,000
Budget estimate, 1998...................................       2,000,000
Committee recommendation................................       2,000,000

    The Committee appropriates $2,000,000 from the national 
security education trust fund for continuation of this program.

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

Appropriations, 1997....................................     $10,000,000
Budget estimate, 1998...................................      10,000,000
Committee recommendation................................      35,000,000

    The Committee recommends $35,000,000 for the Kaho'olawe 
Island conveyance, remediation, and environmental restoration 
trust fund. The Committee notes that the Navy is in its final 
stages for selecting a contractor for its omnibus cleanup 
program and recommends the additional funding to expedite the 
remediation of Kaho'olawe.
                               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 $2,000,000,000, 
instead of the $2,500,000,000 requested by the administration. 
Provision also includes proviso authorizing use of up to 
$20,000,000 in transfer authority to terminate Reserve 
Mobilization Insurance Program.
    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. CHAMPUS pricing reform.--Retains a provision 
carried in previous years.
    Sec. 8009. Multiyear procurement authority.--The Committee 
recommends providing multiyear authority for the following 
programs: Apache longbow radar, T-45 trainer aircraft, and AV-
8B remanufactured aircraft.
    Sec. 8010. Humanitarian and civic assistance.--Retains a 
provision carried in previous years.
    Sec. 8011. Civilian personnel ceilings.--Retains a 
provision carried in previous years.
    Sec. 8012. Overseas civilian work-years.--Retains a 
provision carried in previous years.
    Sec. 8013. Lobbying.--Retains a provision carried in 
previous years.
    Sec. 8014. Educational benefits and bonuses.--Retains a 
provision carried in previous years.
    Sec. 8015. Organizational analysis/contracting out.--
Retains a provision carried in previous years.
    Sec. 8016. Mentor-Protege Program.--Retains a provision 
carried in previous years.
    Sec. 8017. Anchor chains.--Retains a provision carried in 
previous years.
    Sec. 8018. CHAMPUS mental health benefits.--Retains a 
provision carried in previous year.
    Sec. 8019. POW/MIA family travel.--Retains a provision 
carried in previous year.
    Sec. 8020. Residual value negotiations.--Retains a 
provision requested by the administration and carried in 
previous years.
    Sec. 8021. Demilitarization of surplus firearms.--Retains a 
provision carried in previous years.
    Sec. 8022. Selective reenlistment bonus.--Retains a 
provision carried in previous years.
    Sec. 8023. Reserve component travel.--Inserts a new 
provision permitting members of Reserve component units to 
travel in a space-required status.
    Sec. 8024. Indian Financing Act incentives.--Retains and 
modifies a provision carried in previous years.
    Sec. 8025. VC-137 lease.--Inserts a new provision 
permitting funds within the defense business operations fund to 
be used for indemnification requirements associated with the 
VC-137 mission.
    Sec. 8026. 9 mm handgun.--Retains a provision carried in 
previous years.
    Sec. 8027. Relocation to the National Capital region.--
Retains a provision and makes a modification requested by the 
administration.
    Sec. 8028. Military leave for members of the Reserve 
component.--Retains a provision carried in previous years.
    Sec. 8029. A-76 studies.--Retains a provision carried in 
previous years.
    Sec. 8030. American Forces Information Service.--Retains a 
provision carried in previous years.
    Sec. 8031. Wage rate--civilian health.--Retains a provision 
carried in previous years.
    Sec. 8032. WC-130 weather reconnaissance.--Retains a 
provision carried in previous years.
    Sec. 8033. Workshops for the blind and handicapped.--
Retains a provision carried in previous years.
    Sec. 8034. CHAMPUS coordination of benefits.--Retains a 
provision carried in previous years.
    Sec. 8035. Burdensharing.--Retains a provision carried in 
previous years.
    Sec. 8036. Civil Air Patrol.--Retains a provision and 
modifies amounts appropriated for the Civil Air Patrol.
    Sec. 8037. Federally funded research and development 
centers.--Retains a provision carried in previous years.
    Sec. 8038. Chemical weapons studies.--Retains a provision 
carried in previous years.
    Sec. 8039. Carbon, alloy or armor steel plate.--Retains a 
provision carried in previous years.
    Sec. 8040. Congressional defense committees definition.--
Retains a provision carried in previous years.
    Sec. 8041. Depot maintenance competition.--Retains a 
provision carried in previous years.
    Sec. 8042. Advisory and assistance services.--Inserts a new 
provision which makes reductions in titles II, III, and IV of 
the bill to reflect savings to be achieved from decreased use 
of advisory and assistance services by the Department of 
Defense, recognizing a General Accounting Office study which 
concludes that DOD underreports its current use of advisory and 
assistance services.
    Sec. 8043. Energy cost savings.--Retains a provision 
carried in previous year.
    Sec. 8044. Air Force flying hours shortfall.--Inserts a new 
provision reducing Air Force procurement and RDT&E accounts to 
fund shortfalls in the flying hour program.
    Sec. 8045. Nonexcess property leases.--Retains a provision 
carried in previous years.
    Sec. 8046. Quarters allowance for the Reserve component.--
Retains a provision carried in previous years.
    Sec. 8047. Salaries/expenses of administrative 
activities.--Retains a provision carried in previous years.
    Sec. 8048. Navy flying hours shortfall.--Inserts a new 
provision reducing Navy procurement and RDT&E accounts to fund 
shortfalls in the flying hour program.
    Sec. 8049. Overseas military facilities investments.--
Retains a provision carried in previous year.
    Sec. 8050. NATO headquarters operating costs.--Retains a 
provision carried in previous years.
    Sec. 8051. Investment item unit cost.--Retains a provision 
requested by the administration and carried in previous years.
    Sec. 8052. DBOF investment item.-- Retains a provision 
carried in previous years.
    Sec. 8053. Modification restrictions.--Retains a provision 
carried in previous years.
    Sec. 8054. CIA availability of funds.--Retains a provision 
carried in previous years.
    Sec. 8055. GDIP information system.--Retains a provision 
carried in previous years.
    Sec. 8056. Indian tribes environmental impact.--Retains a 
provision carried in previous years.
    Sec. 8057. National Science Center for Communications.--
Retains a provision carried in previous years.
    Sec. 8058. Medical facilities commander.--Retains a 
provision carried in previous years.
    Sec. 8059. Compliance with the Buy America Act.--Retains a 
provision requested by the administration and carried in 
previous years.
    Sec. 8060. Competition for consultants and studies 
programs.--Retains a provision requested by the administration 
and carried in previous years.
    Sec. 8061. Intelligence authorization.--Retains a provision 
carried in previous years.
    Sec. 8062. Field operating agencies.--Retains a provision 
carried in previous years.
    Sec. 8063. Adak leasing.--Retains a provision carried in 
previous years.
    Sec. 8064. Rescissions.--The Committee recommends a general 
provision rescinding funds from three programs as displayed 
below.

        Fiscal year 1997
Aircraft procurement, Navy/EA-6 series--band 9/10 
    transmitters........................................     $40,000,000
Research, development, test, and evaluation, Defense-
    wide/tactical UAV--outrider.........................      20,000,000
Research, development, test, and evaluation, Defense-
    wide/follow-on TMD--airborne sensors for ballistic 
    missile tracking....................................       9,700,000
Research, development, test, and evaluation, Air Force/
    classified program..................................      25,000,000

    Sec. 8065. Civilian technicians reductions.--Retains a 
provision carried in previous years.
    Sec. 8066. Prohibition on assistance to North Korea.--
Retains a provision carried in previous years.
    Sec. 8067. National Guard counterdrug activities.--Retains 
a provision carried in previous years.
    Sec. 8068. Reimbursement for Reserve component intelligence 
personnel.--Retains a provision carried in previous years.
    Sec. 8069. Civilian medical personnel reductions.--Retains 
a provision carried in previous years.
    Sec. 8070. CHAMPUS refund.--Retains a provision carried in 
previous years.
    Sec. 8071. Pentagon renovation cost ceiling.--Retains a 
provision carried in previous years.
    Sec. 8072. Energy and water efficiency.--Retains a 
provision carried in previous years.
    Sec. 8073. Ball and roller bearings.--Retains a provision 
carried in previous years.
    Sec. 8074. American Samoa transfer.--Retains a provision 
carried in previous years.
    Sec. 8075. Buy American computers--supercomputers.--Retains 
a provision carried in previous years.
    Sec. 8076. Coast Guard transfer.--Retains a provision 
transferring $300,000,000 of the funds appropriated in this act 
to the U.S. Coast Guard.
    Sec. 8077. Local hire in noncontiguous States.--Retains a 
provision carried in previous year.
    Sec. 8078. Peacekeeping costs of the United Nations.--
Retains a provision carried in previous years.
    Sec. 8079. Restrictions on transfer of equipment and 
supplies.--Retains a provision carried in previous years.
    Sec. 8080. Export Loan Guarantee Program.--Retains a 
provision carried in previous years.
    Sec. 8081. Financing U.S. assessed contribution to United 
Nations peacekeeping.--Retains a provision carried in previous 
years.
    Sec. 8082. Contractor bonuses due to business 
restructuring.--Retains a provision carried in previous years.
    Sec. 8083. Transportation of chemical weapons.--Retains a 
provision carried previous years.
    Sec. 8084. Former Soviet Union/housing.--Retains a 
provision carried in previous years.
    Sec. 8085. Reserve peacetime support to active duty and 
civilian activities.--Retains a provision carried in previous 
years.
    Sec. 8086. SCN adjustments to closed accounts.--Retains a 
provision carried in previous years.
    Sec. 8087. B-2 expenditures and obligations.--Retains and 
modifies a provision requested by the administration which 
allows prior-year funds that were available for the B-2 
aircraft program to remain available for expenditure until 
September 30, 2003.
    Sec. 8088. Expired obligations and unexpended balances.--
Retains a provision carried in previous years.
    Sec. 8089. Shipbuilding transfers.--Retains a provision and 
modifies funding transfers for ship cost adjustments.
    Sec. 8090. Prohibition of restructuring costs.--Retains a 
provision carried in previous years.
    Sec. 8091. High security locks.--Retains a provision 
carried in previous years.
    Sec. 8092. Facilities supervision and administrative 
costs.--Retains a provision carried in previous years.
    Sec. 8093. Asia Pacific Center.--Retains a provision 
carried in previous years.
    Sec. 8094. National Guard distance learning.--Retains a 
provision carried in previous years.
    Sec. 8095. Prompt Payment Act interest penalties.--Inserts 
a new provision requested by the administration that allows 
payment of interest penalties from DOD agency or service funds.
    Sec. 8096. Army C-37 acquisition.--Inserts a new provision 
requested by the administration which provides required 
statutory authority and direction to permit the Army to acquire 
a C-37 aircraft, trading in existing C-20 aircraft in partial 
payment for the acquisition.
    Sec. 8097. Shipbuilding industrial base enhancement.--
Inserts a new provision which earmarks $250,000 from the 
Maritime Technology Program to assist with a pilot project 
facilitating the transfer of commercial cruise shipbuilding 
technology and expertise to U.S. shipyards and enables the 
operation of one U.S.-flag foreign built cruise ship and two 
U.S. constructed cruise ships.
    Sec. 8098. Obligation of prior-year funds.--Inserts a new 
provision which directs the Defense Department to obligate 
prior-year funds appropriated for university research 
initiatives.
  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 1998 
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. 924, the Fiscal Year 
1998 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 en 
bloc ordered reported S. 1005, an original DOD appropriations 
bill and S. 1004, an original Energy and Water Development 
appropriations bill, 1998, subject to amendment and subject to 
their budget allocations, by a recorded vote of 28-0, a quorum 
being present. The vote was as follows:
        Yeas                          Nays
Chairman Stevens
Mr. Cochran
Mr. Specter
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.''

  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 1997 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL 
                                                                        YEAR 1998                                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      Senate Committee recommendation   
                                                                                                   Committee              compared with (+ or -)        
                        Item                          1997 appropriation    Budget estimate     recommendation   ---------------------------------------
                                                                                                                  1997 appropriation    Budget estimate 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
                       TITLE I                                                                                                                          
                                                                                                                                                        
                 MILITARY PERSONNEL                                                                                                                     
                                                                                                                                                        
Military Personnel, Army............................    $20,633,998,000     $20,492,257,000     $20,426,457,000       -$207,541,000        -$65,800,000 
Military Personnel, Navy............................     16,986,976,000      16,501,118,000      16,508,218,000        -478,758,000          +7,100,000 
Military Personnel, Marine Corps....................      6,111,728,000       6,147,599,000       6,148,899,000         +37,171,000          +1,300,000 
Military Personnel, Air Force.......................     17,069,490,000      17,154,556,000      17,206,056,000        +136,566,000         +51,500,000 
Reserve Personnel, Army.............................      2,073,479,000       2,024,446,000       2,037,046,000         -36,433,000         +12,600,000 
Reserve Personnel, Navy.............................      1,405,606,000       1,375,401,000       1,374,901,000         -30,705,000            -500,000 
Reserve Personnel, Marine Corps.....................        388,643,000         381,070,000         384,770,000          -3,873,000          +3,700,000 
Reserve Personnel, Air Force........................        783,697,000         814,936,000         815,745,000         +32,048,000            +809,000 
National Guard Personnel, Army......................      3,266,393,000       3,200,667,000       3,446,867,000        +180,474,000        +246,200,000 
National Guard Personnel, Air Force.................      1,296,490,000       1,319,712,000       1,334,712,000         +38,222,000         +15,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, title I, Military Personnel............     70,016,500,000      69,411,762,000      69,683,671,000        -332,829,000        +271,909,000 
                                                     ===================================================================================================
                      TITLE II                                                                                                                          
                                                                                                                                                        
              OPERATION AND MAINTENANCE                                                                                                                 
                                                                                                                                                        
Operation and Maintenance, Army.....................     17,519,340,000      17,049,484,000      16,913,473,000        -605,867,000        -136,011,000 
    (By transfer--National Defense Stockpile).......        (50,000,000)        (50,000,000)        (50,000,000)  ..................  ..................
Operation and Maintenance, Navy.....................     20,061,961,000      21,508,130,000      21,576,419,000      +1,514,458,000         +68,289,000 
    (By transfer--National Defense Stockpile).......        (50,000,000)        (50,000,000)        (50,000,000)  ..................  ..................
Operation and Maintenance, Marine Corps.............      2,254,119,000       2,301,345,000       2,328,535,000         +74,416,000         +27,190,000 
Operation and Maintenance, Air Force................     17,263,193,000      18,817,785,000      18,592,385,000      +1,329,192,000        -225,400,000 
    (By transfer--National Defense Stockpile).......        (50,000,000)        (50,000,000)        (50,000,000)  ..................  ..................
Operation and Maintenance, Defense-Wide.............     10,044,200,000      10,390,938,000      10,399,638,000        +355,438,000          +8,700,000 
Operation and Maintenance, Army Reserve.............      1,119,436,000       1,192,891,000       1,212,891,000         +93,455,000         +20,000,000 
Operation and Maintenance, Navy Reserve.............        886,027,000         834,711,000         834,211,000         -51,816,000            -500,000 
Operation and Maintenance, Marine Corps Reserve.....        109,667,000         110,366,000         110,366,000            +699,000   ..................
Operation and Maintenance, Air Force Reserve........      1,496,553,000       1,624,420,000       1,631,200,000        +134,647,000          +6,780,000 
Operation and Maintenance, Army National Guard......      2,254,477,000       2,258,932,000       2,449,932,000        +195,455,000        +191,000,000 
Operation and Maintenance, Air National Guard.......      2,716,379,000       2,991,219,000       3,010,282,000        +293,903,000         +19,063,000 
Overseas Contingency Operations Transfer Fund.......      1,140,157,000       1,467,500,000       1,889,000,000        +748,843,000        +421,500,000 
United States Court of Appeals for the Armed Forces.          6,797,000           6,952,000           6,952,000            +155,000   ..................
Environmental Restoration, Army.....................        339,109,000         377,337,000         375,337,000         +36,228,000          -2,000,000 
Environmental Restoration, Navy.....................        287,788,000         277,500,000         275,500,000         -12,288,000          -2,000,000 
Environmental Restoration, Air Force................        394,010,000         378,900,000         376,900,000         -17,110,000          -2,000,000 
Environmental Restoration, Defense-Wide.............         36,722,000          27,900,000          26,900,000          -9,822,000          -1,000,000 
Environmental Restoration, Formerly Used Defense                                                                                                        
 Sites..............................................        256,387,000         202,300,000         242,300,000         -14,087,000         +40,000,000 
Overseas Humanitarian, Disaster, and Civic Aid......         49,000,000          80,130,000          40,130,000          -8,870,000         -40,000,000 
Former Soviet Union Threat Reduction................        327,900,000         382,200,000         322,200,000          -5,700,000         -60,000,000 
Quality of Life Enhancements, Defense...............        600,000,000   ..................        100,000,000        -500,000,000        +100,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, title II, Operation and maintenance....     79,163,222,000      82,280,940,000      82,714,551,000      +3,551,329,000        +433,611,000 
          (By transfer).............................       (150,000,000)       (150,000,000)       (150,000,000)  ..................  ..................
                                                     ===================================================================================================
                      TITLE III                                                                                                                         
                                                                                                                                                        
                     PROCUREMENT                                                                                                                        
                                                                                                                                                        
Aircraft Procurement, Army..........................      1,348,434,000       1,029,459,000       1,356,959,000          +8,525,000        +327,500,000 
    (By transfer--National Defense Stockpile).......  ..................       (133,000,000)  ..................  ..................      (-133,000,000)
Missile Procurement, Army...........................      1,041,867,000       1,178,151,000       1,173,081,000        +131,214,000          -5,070,000 
Procurement of Weapons and Tracked Combat Vehicles,                                                                                                     
 Army...............................................      1,470,286,000       1,065,707,000       1,156,506,000        -313,780,000         +90,799,000 
Procurement of Ammunition, Army.....................      1,127,149,000         890,902,000       1,042,602,000         -84,547,000        +151,700,000 
Other Procurement, Army.............................      3,172,485,000       2,455,030,000       2,783,735,000        -388,750,000        +328,705,000 
Aircraft Procurement, Navy..........................      7,027,010,000       5,951,965,000       6,312,937,000        -714,073,000        +360,972,000 
    (By transfer--National Defense Stockpile).......  ..................       (134,000,000)  ..................  ..................      (-134,000,000)
Weapons Procurement, Navy...........................      1,389,913,000       1,136,293,000       1,138,393,000        -251,520,000          +2,100,000 
Procurement of Ammunition, Navy and Marine Corps....        289,695,000         336,797,000         344,797,000         +55,102,000          +8,000,000 
Shipbuilding and Conversion, Navy...................      5,613,665,000       7,438,158,000       8,510,458,000      +2,896,793,000      +1,072,300,000 
Other Procurement, Navy.............................      3,067,944,000       2,825,500,000       2,865,800,000        -202,144,000         +40,300,000 
Procurement, Marine Corps...........................        569,073,000         374,306,000         440,106,000        -128,967,000         +65,800,000 
Aircraft Procurement, Air Force.....................      6,404,980,000       5,684,847,000       6,375,847,000         -29,133,000        +691,000,000 
    (By transfer--National Defense Stockpile).......  ..................       (133,000,000)  ..................  ..................      (-133,000,000)
Missile Procurement, Air Force......................      2,297,145,000       2,557,741,000       2,431,741,000        +134,596,000        -126,000,000 
Procurement of Ammunition, Air Force................        293,153,000         403,984,000         400,984,000        +107,831,000          -3,000,000 
Other Procurement, Air Force........................      5,944,680,000       6,561,253,000       6,653,053,000        +708,373,000         +91,800,000 
Procurement, Defense-Wide...........................      1,978,005,000       1,695,085,000       1,753,285,000        -224,720,000         +58,200,000 
National Guard and Reserve Equipment................        780,000,000   ..................        653,000,000        -127,000,000        +653,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, title III, Procurement.................     43,815,484,000      41,585,178,000      45,393,284,000      +1,577,800,000      +3,808,106,000 
          (By transfer).............................  ..................       (400,000,000)  ..................  ..................      (-400,000,000)
                                                     ===================================================================================================
                      TITLE IV                                                                                                                          
                                                                                                                                                        
     RESEARCH, DEVELOPMENT, TEST AND EVALUATION                                                                                                         
                                                                                                                                                        
Research, Development, Test and Evaluation, Army....      5,062,763,000       4,510,843,000       4,984,083,000         -78,680,000        +473,240,000 
Research, Development, Test and Evaluation, Navy....      8,208,946,000       7,611,022,000       7,532,846,000        -676,100,000         -78,176,000 
Research, Development, Test and Evaluation, Air                                                                                                         
 Force..............................................     14,499,606,000      14,451,379,000      14,142,873,000        -356,733,000        -308,506,000 
Research, Development, Test and Evaluation, Defense-                                                                                                    
 Wide...............................................      9,362,800,000       9,069,680,000       9,608,689,000        +245,889,000        +539,009,000 
Developmental Test and Evaluation, Defense..........        282,038,000         268,183,000         251,183,000         -30,855,000         -17,000,000 
Operational Test and Evaluation, Defense............         24,968,000          23,384,000          31,384,000          +6,416,000          +8,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, title IV, Research, Development, Test                                                                                                      
       and Evaluation...............................     37,441,121,000      35,934,491,000      36,551,058,000        -890,063,000        +616,567,000 
                                                     ===================================================================================================
                       TITLE V                                                                                                                          
                                                                                                                                                        
           REVOLVING AND MANAGEMENT FUNDS                                                                                                               
                                                                                                                                                        
DBOF/Defense Working Capital Funds..................        947,900,000          33,400,000          33,400,000        -914,500,000   ..................
Military Commissary Fund, Defense...................  ..................        938,552,000         838,552,000        +838,552,000        -100,000,000 
National Defense Sealift Fund:                                                                                                                          
    Ready Reserve Force.............................        266,000,000         302,000,000         278,000,000         +12,000,000         -24,000,000 
    Acquisition.....................................      1,162,002,000         889,426,000         238,126,000        -923,876,000        -651,300,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total.........................................      1,428,002,000       1,191,426,000         516,126,000        -911,876,000        -675,300,000 
                                                     ===================================================================================================
      Total, title V, Revolving and Management Funds      2,375,902,000       2,163,378,000       1,388,078,000        -987,824,000        -775,300,000 
                                                     ===================================================================================================
                      TITLE VI                                                                                                                          
                                                                                                                                                        
        OTHER DEPARTMENT OF DEFENSE PROGRAMS                                                                                                            
                                                                                                                                                        
Defense Health Program:                                                                                                                                 
    Operation and maintenance.......................      9,937,838,000      10,027,582,000      10,043,607,000        +105,769,000         +16,025,000 
    Procurement.....................................        269,470,000         274,068,000         274,068,000          +4,598,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, Defense Health Program.................     10,207,308,000      10,301,650,000      10,317,675,000        +110,367,000         +16,025,000 
Chemical Agents and Munitions Destruction, Defense:                                                                                                     
 \1\                                                                                                                                                    
    Operation and maintenance.......................        478,947,000         472,200,000         467,200,000         -11,747,000          -5,000,000 
    Procurement.....................................        191,200,000          82,200,000          77,200,000        -114,000,000          -5,000,000 
    Research, development, test, and evaluation.....         88,300,000          66,300,000          70,300,000         -18,000,000          +4,000,000 
Economic assumptions................................  ..................  ..................         -5,000,000          -5,000,000          -5,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Chemical Agents........................        758,447,000         620,700,000         609,700,000        -148,747,000         -11,000,000 
Drug Interdiction and Counter-Drug Activities,                                                                                                          
 Defense............................................        807,800,000         652,582,000         691,482,000        -116,318,000         +38,900,000 
Office of the Inspector General.....................        139,157,000         138,380,000         135,380,000          -3,777,000          -3,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, title VI, Other Department of Defense                                                                                                      
       Programs.....................................     11,912,712,000      11,713,312,000      11,754,237,000        -158,475,000         +40,925,000 
                                                     ===================================================================================================
                      TITLE VII                                                                                                                         
                                                                                                                                                        
                  RELATED AGENCIES                                                                                                                      
                                                                                                                                                        
Central Intelligence Agency Retirement and                                                                                                              
 Disability System Fund.............................        196,400,000         196,900,000         196,900,000            +500,000   ..................
Intelligence Community Management Account...........        102,164,000          95,580,000         122,580,000         +20,416,000         +27,000,000 
    Transfer to Dept of Justice.....................         27,000,000          27,000,000   ..................        -27,000,000         -27,000,000 
Payment to Kaho'olawe Island Conveyance,                                                                                                                
 Remediation, and Environmental Restoration Fund....         10,000,000          10,000,000          35,000,000         +25,000,000         +25,000,000 
National Security Education Trust Fund..............          5,100,000           2,000,000           2,000,000          -3,100,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, title VII, Related agencies............        340,664,000         331,480,000         356,480,000         +15,816,000         +25,000,000 
                                                     ===================================================================================================
                     TITLE VIII                                                                                                                         
                                                                                                                                                        
                 GENERAL PROVISIONS                                                                                                                     
                                                                                                                                                        
Additional transfer authority (sec. 8005)...........     (2,000,000,000)     (2,500,000,000)     (2,000,000,000)  ..................      (-500,000,000)
Indian Financing Act incentives (sec. 8024).........  ..................  ..................          8,000,000          +8,000,000          +8,000,000 
Disposal and lease of DOD real property (sec. 8045).         26,565,000          64,000,000          64,000,000         +37,435,000   ..................
Overseas Military Fac Investment Recovery (sec.                                                                                                         
 8049)..............................................          1,000,000          30,000,000          30,000,000         +29,000,000   ..................
National Science Center, Army (sec. 8060)...........            120,000   ..................  ..................           -120,000   ..................
Export loan guarantee PGM (sec. 8080)...............          1,000,000           1,000,000           1,000,000   ..................  ..................
Rescissions (sec. 8064).............................       -137,108,000   ..................        -94,700,000         +42,408,000         -94,700,000 
Coast Guard transfer (sec. 8076)....................        300,000,000   ..................        300,000,000   ..................       +300,000,000 
Navy/Air Force advance billing (secs. 8044/8048)....  ..................  ..................       -600,000,000        -600,000,000        -600,000,000 
Excess funded carryover (sec. 8088).................       -150,000,000   ..................  ..................       +150,000,000   ..................
RDT&E general reduction (sec. 8136).................       -680,552,000   ..................  ..................       +680,552,000   ..................
Air Force DBOF pass through (sec. 8096).............       -194,500,000   ..................  ..................       +194,500,000   ..................
FFRDC's (sec. 8037).................................       -154,572,000   ..................        -71,800,000         +82,772,000         -71,800,000 
Advisory and assistance services (sec. 8042)........  ..................  ..................       -300,000,000        -300,000,000        -300,000,000 
Weapons of Mass Destruction (sec. 8128).............        100,000,000   ..................  ..................       -100,000,000   ..................
Anti-terrorism, counter-terrorism, and security                                                                                                         
 enhancement activities:                                                                                                                                
    Emergency funding, fiscal year 1997 (sec. 8137).        230,680,000   ..................  ..................       -230,680,000   ..................
    General reduction (sec. 8138)...................       -230,680,000   ..................  ..................       +230,680,000   ..................
RDT&E, Def-Wide dual-use program (Title V--sec.                                                                                                         
 5803)..............................................        100,000,000           2,000,000   ..................       -100,000,000          -2,000,000 
Fisher Houses (sec. 8055)...........................  ..................          1,000,000   ..................  ..................         -1,000,000 
Travel Cards (sec. 8056)............................  ..................          5,000,000   ..................  ..................         -5,000,000 
Army C-37 aircraft (sec. 8096)......................  ..................  ..................  ..................  ..................  ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, title VIII.............................       -788,047,000         103,000,000        -663,500,000        +124,547,000        -766,500,000 
                                                     ===================================================================================================
      Grand total...................................    244,277,558,000     243,523,541,000     247,177,859,000      +2,900,301,000      +3,654,318,000 
          (By transfer).............................       (150,000,000)       (550,000,000)       (150,000,000)  ..................      (-400,000,000)
                                                                                                                                                        
                   RECAPITULATION                                                                                                                       
                                                                                                                                                        
Title I--Military Personnel.........................     70,016,500,000      69,411,762,000      69,683,671,000        -332,829,000        +271,909,000 
Title II--Operation and Maintenance.................     79,163,222,000      82,280,940,000      82,714,551,000      +3,551,329,000        +433,611,000 
      (By transfer).................................       (150,000,000)       (150,000,000)       (150,000,000)  ..................  ..................
Title III--Procurement..............................     43,815,484,000      41,585,178,000      45,393,284,000      +1,577,800,000      +3,808,106,000 
    (By transfer)...................................  ..................       (400,000,000)  ..................  ..................      (-400,000,000)
Title IV--Research, Development, Test and Evaluation     37,441,121,000      35,934,491,000      36,551,058,000        -890,063,000        +616,567,000 
Title V--Revolving and Management Funds.............      2,375,902,000       2,163,378,000       1,388,078,000        -987,824,000        -775,300,000 
Title VI--Other Department of Defense Programs......     11,912,712,000      11,713,312,000      11,754,237,000        -158,475,000         +40,925,000 
Title VII--Related agencies.........................        340,664,000         331,480,000         356,480,000         +15,816,000         +25,000,000 
Title VIII--General provisions......................       -788,047,000         103,000,000        -663,500,000        +124,547,000        -766,500,000 
    (Additional transfer authority).................     (2,000,000,000)     (2,500,000,000)     (2,000,000,000)  ..................      (-500,000,000)
                                                     ---------------------------------------------------------------------------------------------------
      Total, Department of Defense..................    244,277,558,000     243,523,541,000     247,177,859,000      +2,900,301,000      +3,654,318,000 
          Scorekeeping adjustments..................       -230,680,000         400,000,000   ..................       +230,680,000        -400,000,000 
                                                     ---------------------------------------------------------------------------------------------------
            Grand total.............................    244,046,878,000     243,923,541,000     247,177,859,000      +3,130,981,000      +3,254,318,000 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Included in budget under procurement title.                                                                                                         



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