[Senate Report 106-325]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 654
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-325

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



 
               INTELLIGENCE AUTHORIZATION ACT FOR FY 2001

                                _______
                                

                 June 29, 2000.--Ordered to be printed

                                _______
                                

    Mr. Warner, from the Committee on Armed Services, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 2507]

    The Committee on Armed Services, to which was referred the 
bill (S. 2507) to authorize appropriations for fiscal year 2001 
for intelligence and intelligence-related activities of the 
United States Government, the Community Management Account, and 
the Central Intelligence Agency Retirement and Disability 
System, and for other purposes, having considered the same, 
reports favorably thereon with amendments and recommends that 
the bill as amended do pass.

                          purpose of the bill

    S. 2507 would authorize appropriations and other matters 
for Fiscal Year 2001 for intelligence activities of the United 
States, including certain Department of Defense intelligence 
related activities within the jurisdiction of the Senate Armed 
Services Committee (SASC).
    The Senate Select Committee on Intelligence (SSCI) reported 
the bill on May 4, 2000, and it was referred to the Committee 
on Armed Services in accordance with section 3(b) of Senate 
Resolution 400, 94th Congress.

                       scope of committee review

    The committee conducted a detailed review of the 
intelligence community authorization request for Fiscal Year 
2001. The committee conducted hearings and met with the 
Chairman and Vice Chairman of the Senate Select Committee on 
Intelligence.
    The committee has carefully reviewed the report of the 
Select Committee on Intelligence (S. Rept. 106-279) and has 
incorporated the relevant budget decisions of the SSCI into S. 
2549, the National Defense Authorization Act for Fiscal Year 
2001, which the SASC reported to the Senate on May 12, 2000.
    The following explains the committee's proposed amendments 
to the bill as reported by the SSCI, as well as the committee's 
clarification to the report issued by the SSCI.

Two year extension of authority to engage in commercial activities as 
        security for intelligence collection activities

    Section 431(a) of Title 10, United States Code (USC), 
authorizes the Secretary of Defense to authorize the conduct of 
those commercial activities necessary to provide security for 
authorized intelligence collection activities abroad undertaken 
by the Department of Defense. Section 501 of S. 2507, as 
reported by the SSCI, would extend this authority by two years. 
The SASC has no objection to such an extension of authority. As 
a matter of committee jurisdiction, however, the SASC insists 
that amendments to Title 10, USC, be included in the Defense 
Authorization Act, not in the Intelligence Authorization Act. 
Therefore, the SASC proposes an amendment to S. 2507 as 
reported by the SSCI to strike section 501. The SASC intends, 
with the approval of the Senate, to include an identical 
provision in S. 2549.

Nuclear test monitoring equipment

    Section 502 of S. 2507, as reported by the SSCI, would 
amend subchapter II of chapter 138 of Title 10, USC, by 
providing the Secretary of Defense with authority to convey or 
otherwise provide to a foreign government equipment for 
monitoring nuclear test explosions and to install such 
equipment on foreign territory. Section 1206 of S. 2549 would 
provide similar authority, as well as other authorities, for 
DOD to manage this effort. Therefore, the SASC recommends an 
amendment to strike section 502 of S. 2507, as reported by the 
SSCI. The SASC intends to work with the SSCI to reconcile any 
differences in policy between the two committees on this matter 
prior to completion of the conference report on the National 
Defense Authorization Act for Fiscal Year 2001.

Experimental personnel management program for technical personnel for 
        certain elements of the intelligence community

    Section 503 of S. 2507, as reported by the SSCI, would 
authorize the Director of Central Intelligence (DCI) to carry 
out a program of experimental use of special personnel 
management authority in order to facilitate recruitment of 
eminent experts in science and engineering for research and 
development projects administered by the National Security 
Agency (NSA), the National Reconnaissance Office (NRO), the 
National Imagery and Mapping Agency (NIMA), and the Defense 
Intelligence Agency (DIA). Since these are all defense agencies 
under the personnel management system of the Department of 
Defense, the SASC objects to granting such authority to the 
DCI. The Secretary of Defense has alsostated that such an 
approach ``would take the unprecedented step of authorizing the DCI to 
appoint personnel across Executive Department lines to positions in 
DOD, without the Secretary of Defense's approval or involvement. This 
is inconsistent with the Secretary's responsibilities to manage the 
Department pursuant to 10 USC, section 113.'' The SASC recognizes the 
need for several of the intelligence agencies to have special hiring 
authority for select cases involving science and engineering 
specialties. Section 1113 of S. 2549 would extend such authority to the 
Secretary of Defense for filling positions, on a limited basis, in NSA 
and NIMA. For the reasons specified above, the SASC recommends an 
amendment to strike section 503 of S. 2507, as reported by the SSCI.

Prohibition on transfer of imagery analysts from General Defense 
        Intelligence Program to National Imagery and Mapping Agency 
        Program

    The SSCI report would direct the transfer of imagery 
analysts and systems support personnel from the General Defense 
Intelligence Program (GDIP) to the National Imagery and Mapping 
Agency Program (NIMAP). According to the Secretary of Defense: 
``The Combatant Commanders are unanimous in their opposition to 
this proposal, citing it as unnecessary and detrimental to the 
accomplishment of their missions.'' The SASC agrees that the 
Combatant Commanders need to retain control of these imagery 
analysts and support personnel. The overall allocation of 
imagery analysts was evaluated in 1996 when NIMA was 
established. There were good and sufficient reasons for those 
original decisions made in consolidating imagery professionals. 
Therefore, the SASC recommends an amendment that would prohibit 
the proposed transfer. However, the SASC does agree that it 
would be appropriate for the Secretary of Defense to assess 
options for strengthening the role of the NIMA Director as 
functional manager for imagery and geospacial programs. 
Therefore, the amendment proposed by the SASC would require the 
Secretary of Defense, in consultation with the DCI, to conduct 
such an assessment. The SASC believes that it may be possible 
for NIMA to assume overall control of those imagery analysts 
currently funded in the GDIP, while allowing the Combatant 
Commanders to retain day-to-day operational control over such 
personnel, similar to the current arrangement for signals 
intelligence personnel. The SASC directs the Secretary of 
Defense to evaluate such an option and include an evaluation of 
this option in his report on strengthening NIMA's authority.

Prohibition on transfer of collection management personnel from General 
        Defense Intelligence Program to Community Management Account

    The SSCI report would direct a transfer of resources and 
personnel who are performing multidiscipline requirements 
management and tasking from the GDIP to the Community 
Management Account. According to the Secretary of Defense: 
``The assets affected by this proposed move are the assets that 
function as my Intelligence Collection Manager, serving as the 
focal point for all DOD requirements. This move will restrict 
our intelligence efforts.'' The DCI has also registered 
objection to this transfer. The SASC agrees with these 
assessments and recommends an amendment that would prohibit the 
transfer of collection management personnel from the GDIP to 
the Community Management Account.

Authorized personnel ceiling for General Defense Intelligence Program

    The SSCI report would reduce funds available for GDIP 
military pay and would mandate a significant overall 
endstrength reduction of billets credited against the GDIP. The 
SASC understands the SSCI's concern regarding the fill rate for 
personnel funded in the GDIP. The SASC notes, however, that 
fill rates below fully authorized levels is common throughout 
the Department of Defense. The GDIP does not appear to be 
suffering personnel fill levels significantly below other 
comparable agencies. Nonetheless, the SASC agrees that the 
issue of fill rates at intelligence agencies in the Department 
of Defense should be assessed to determine whether these 
agencies can achieve higher personnel levels. Therefore, the 
committee directs the Secretary of Defense to conduct an 
assessment of all intelligence agencies within the Department 
of Defense to determine whether their personnel fill rates can 
be improved. A report on this assessment shall be submitted to 
the congressional defense and intelligence committees not later 
than April 1, 2001. The SASC, however, opposes the SSCI 
recommendation to cut GDIP billets. According to the Secretary 
of Defense: ``The loss of the billets and pay would materially 
reduce DIA's military intelligence collection, processing, and 
reporting capabilities, and a realignment of billets and pay 
would undermine severely the Department's accounting 
procedures.'' The SASC is concerned that reducing the personnel 
ceiling will not fix the fill rate problem, but would more 
likely just establish a lower ceiling against which unchanged 
fill rates would be applied. This outcome would certainly 
result in a severe reduction in personnel available to satisfy 
important DIA requirements. Therefore, the SASC recommends an 
amendment that would restore the billets proposed to be cut and 
transferred by the SSCI.

Measurement and Signature Intelligence

    The SSCI report would require that the DCI conduct a study 
of the utility and feasibility of various options for improving 
the management and organization of measurement and signature 
intelligence (MASINT). The SASC agrees that such a review is 
necessary, but is concerned that the SSCI language excludes the 
Secretary of Defense, who has a significant role in the area of 
MASINT. Therefore, the SASC recommends an amendment that would 
require that the DCI conduct such a review, in coordination 
with the Secretary of Defense.

Defense Attache System

    The SSCI report would require a significant cut in the 
budget request for Defense Attache System funding intended to 
be used for expansion into regional hot spots. The SASC is 
concerned that reducing the planned increase in defense HUMINT 
capabilities would be unwise, particularly at a time of 
increasing tension around the globe. The SASC urges the SSCI to 
reconsider its proposal and to support full funding for the 
Defense Attache System in conference.

National Reconnaissance Office operational support

    The SSCI would reduce funds for the NRO's operational 
support program. Such funds are used to provide training for 
the warfighter on NRO systems. As the Secretary of Defense has 
stated: ``The Commanders-in-Chief and other Defense activities 
that receive support through this program consider NRO 
personnel an invaluable, integrated component of their 
multidiscipline intelligence terms.'' The SASC strongly 
supports the NRO's efforts to provide space support to the 
warfighter, and urges the SSCI to support full funding of the 
NRO's budget request for operational support in conference.

                            committee action

    In accordance with the Legislative Reorganization Act of 
1946, as amended by the Legislative Reorganization Act of 1970, 
the committee approved a motion to report favorably to the 
Senate S. 2507 with amendments.

                              fiscal data

    The Committee will publish in the Congressional Record 
information on five-year cost projections when such information 
is received from the Congressional Budget Office.

                           regulatory impact

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires that a report on the regulatory impact of a 
bill be included in the report on the bill. The Committee finds 
that there is no regulatory impact in the cost of S. 2507.

                   comments from the executive branch

    On June 28, 2000, the committee received a letter from the 
Secretary of Defense and the Chairman of the Joint Chiefs of 
Staff regarding S. 2507, among other things. A copy of this 
letter appears below.

Hon. John W. Warner,
Chairman, Committee on Armed Services,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: As the Congress considers the FY 2001 
Intelligence Authorization legislation, we want to highlight 
for you several issues within the House and Senate bills to 
which we must object. We are very concerned about the potential 
negative impact of several fiscal marks and language on defense 
intelligence, and we are deeply troubled by language that would 
limit our abilities to execute responsibilities in support of 
military operations.
    Transfer Authority of the Director of Central Intelligence 
(DCI): The House Permanent Select Committee on Intelligence 
(HPSCI) recommends an amendment to section 104(d)(1) of the 
National Security Act of 1947 that both interferes with the 
Secretary's ability to object to the movement of DoD NFIP funds 
and personnel and restricts the Secretary's authority to 
delegate. The proposed language would allow the DCI or his 
delegated representative to effect changes to DoD NFIP programs 
unless the Secretary of Defense objects in writing. Further, it 
would limit the Secretary's authority to delegate such 
objections only to the Deputy Secretary. The requirement that 
such an objection be in writing is unnecessarily onerous and 
the delegation restriction infringes upon the Secretary's 
authority and responsibility to manage the Department, and is 
inconsistent with the intent of 10 USC Sec. 113(d). We strongly 
urge that Section 105 be deleted in its entirety and that we 
work together to address any concerns of the Congress that 
produced this language.
    Intelligence Community Communications Architect/
Architecture: The HPSCI mark directs the DCI to establish the 
position of Intelligence Community Communications Architect, 
with a 30-person professional staff with broad responsibilities 
for the development of a worldwide intelligence community 
telecommunications architecture and network. The HPSCI further 
recommends that $80M be transferred from NRO, NSA and DIA to 
the Community Management Account to fund architectural efforts. 
This unilateral and independent architectural office would 
seriously damage, if not totally destroy, the efforts of the 
DoD Chief Information Officer (CIO), who has ongoing activities 
with the IC and Defense Intelligence Component CIO's to advance 
interoperability between and among intelligence producers and 
consumers, and who has statutory responsibilities under the 
Clinger-Cohen Act. The IC is an integral mission partner in the 
DoD's Global Information Grid (GIG) that is being designed and 
implemented to address many of the concerns raised by the 
committee. The HPSCI's marks will perturbate existing 
relationships and potentially prevent pursuit of an efficient 
GIG strategy. We strongly urge the conference committee to 
delete these marks in their entirety and to reemphasize support 
for a DoD and DCI technological and managerial partnership to 
address these issues.
    Experimental Personnel Management Program: The Senate 
Select Committee on Intelligence (SSCI) proposes language that 
would take the unprecedented step of authorizing the DCI to 
appoint personnel across Executive Department lines to 
positions in the DoD, without the Secretary of Defense's 
approval or involvement. This is inconsistent with the 
Secretary's responsibilities to manage the Department pursuant 
to 10 USC Sec. 113. We would welcome, however, legislation to 
increase the statutory cap on Defense Intelligence Senior 
Executive Service positions, contained in 10 U.S.C. 1606(a), 
from 493 to 517.
    Collaboration: We very much appreciate the HPSCI's positive 
assessment of the Department's Joint Intelligence Virtual 
Architecture (JIVA) tool but we must oppose direction to 
transfer program oversight to the DCI's ADCI/A&P and further 
believe it is premature to declare JIVA the community standard 
for collaboration. we feel strongly that it would be counter-
productive both to prohibit further non-JIVA technology 
pursuits and to remove the program from the DoD oversight that 
has made it the success that the committee commends.
    General Defense Intelligence Program (GDIP): The SSCI 
proposed several reductions and realignments that would 
diminish Defense Intelligence capabilities.
    The SSCI recommends a reduction to GDIP military pay and 
further recommends that over 1,000 billets not be credited 
against the GDIP. The DIA accounts for military billets and pay 
in accordance with DoD policy. The loss of billets and pay 
would materially reduce DIA's military intelligence collection, 
processing, and reporting capabilities, and a realignment of 
billets and pay would undermine severely the Department's 
accounting procedures. We urge deletion of this language in its 
entirety.
    The SSCI recommends a transfer of resources and personnel 
who are performing Multidiscipline Requirements Management and 
Tasking from the GDIP to the Community Management Account. This 
is one of several provisions that we find personally 
disturbing. It would appear the committee is attempting to 
systematically dismantle organizations and functions that are 
historically and inherently Defense Intelligence activities and 
realign them to the DCI's Community Management Staff. The 
assets affected by this proposed move are the assets that 
function as Intelligence Collection Manager, serving as the 
focal point for all DoD requirements. This move will restrict 
our intelligence efforts.
    The SSCI recommends the transfer of imagery analysts and 
systems support personnel and resources from the GDIP to the 
NIMA. These resources provide direct support to the Service 
intelligence chiefs and the Commanders of the Combatant 
Commands. At the formation of NIMA, the Department made a 
conscious choice to exclude these resources from the 
consolidation. The Combatant Commanders are unanimous in their 
opposition to this proposal, citing it as unnecessary and 
detrimental to the accomplishment of their missions. They are 
adamant that such a transfer will deprive them of flexibility 
and undermine the unity of control within the Combatant 
Commands. We oppose this provision.
    The SSCI, in a mark entitled ``Balancing DAO Collection 
Capabilities,'' recommends a drastic cut to Defense Attache 
System funding that reverses the planned expansion into 
regional hot spots. The Committee is committed to sustaining 
and enhancing our ever increasingly important global HUMINT 
capabilities. We have made great progress since 
theconsolidation of all Defense HUMINT activities in 1995 and with 
continued congressional support we will continue to fine-tune our 
capabilities. Contrary to the assertions in the committee report, we 
are increasing our efforts against hard targets while at the same time 
expanding our attache system in response to requirements identified by 
the military theater Commanders-in-Chief. We urge restoration of these 
funds and seek your continued support of this most critical discipline.
    The SSCI eliminated all funds requested to design an 
addition to the Defense Intelligence Analysis Center at Bolling 
Air Force Base. Our desire and intent are to consolidate DIA 
Washington area personnel into a single, secure facility on a 
military installation. Collocation benefits from a business 
perspective are rather intuitive, but we must also face the 
reality of the potential terrorism threat that our intelligence 
personnel face every single day that they remain, in large 
numbers, in unsecure leased commercial facilities. The 
committee notes that the consolidation will not take place for 
several more years. We sincerely wish that we could make it 
happen today, but we cannot. With congressional support we can 
make it happen with all due haste. This cut only serves to 
prolong the time required to adequately protect our military 
and civilian personnel. We strongly urge restoration of the 
requested funds.
    National Imagery and Mapping Agency: The SSCI recommends a 
redirection of funds within the National Imagery and Mapping 
Program to boost funding for modernizing TPED functions within 
the U.S. Imagery and Geospatial System. NIMA's FY 2001 budget 
request already includes additional resources over last year's 
request, reflective of a community commitment to modernizing 
USIGS. NIMA made the difficult internal realignment decisions 
necessary to provide these additional funds. Any further 
perturbation will degrade NIMA's ability to support both 
national and tactical customers beyond already reduced levels. 
We strongly urge that this provision be deleted and that the 
Director of NIMA, in consultation with appropriate 
congressional committees, our offices, and that of the DCI, be 
afforded an opportunity to implement the difficult decisions 
that have already been reached.
    National Reconnaissance Office: We urge the conference 
committee to support the President's Budget request for the 
National Reconnaissance Program and we specifically request 
your support on the following items that impact Defense.
    Both the SSCI and HPSCI directed cuts against the NRO's 
Operational Support line. Operational Support funds provide 
training for the warfighter on NRO systems and ensures rapid, 
two-way communication between the warfighter and NRO management 
and ensure a high level of fidelity in support to the 
operational commander. The NRO is to be commended for deploying 
a first rate cadre of professionals who fully interact and 
coordinate their activities with other intelligence agency 
officers around the world. The Commanders-in-Chief and other 
Defense activities that receive support through this program 
consider NRO personnel an invaluable, integrated component of 
their multidiscipline intelligence teams. We urge full 
restoration of the funds requested for this activity.
    The HPSCI zeroed the request for the Discoverer II program. 
This is a critical demonstration program for the potential 
future of space-based radar collection. It meets all technical 
objectives and provides a necessary and timely step toward 
exploring new space sensing capabilities that could be 
incorporated into any future space-based radar system. An 
excellent partnership has been forged between the NRO, Air 
Force, Army and DARPA that ensures this demonstration effort 
addresses both military and national needs. We strongly urge 
full funding of this program.
    The HPSCI proposes language that prohibits the NRO from 
using Space and Missile Systems Center contracts to acquire 
launch vehicles and directs the NRO to assume direct 
responsibility and authority for their procurement needs by 
contracting directly with industry. Certainly there has been 
legitimate reason for concern in this arena, but we would urge 
a new review that we are confident will reveal a much improved 
management structure and contracting process that does not 
merit this language. Both the mandates and proscriptions of the 
HPSCI language could ultimately create inefficiencies of the 
very nature that the committee seeks to prevent. We encourage 
the Congress to work with the NRO to seek a satisfactory 
solution to its concerns and urge the conference committee to 
remove this well-intentioned but counterproductive provision.
    National Security Agency: While we understand the HPSCI's 
concerns about funding levels necessary to achieve successful 
NSA Transformation, we are disturbed that the House has 
recommended significant changes to NSA's Consolidated 
Cryptologic Program budget. We are convinced that the budget 
presented, as modified by the NSA Business Plan, provides the 
best plan for transformation given the 1-5 year change cycle 
required for transformation, and provides the most flexibility 
for implementation until early stage results are available. As 
such we object vigorously to large-scale funding shifts that 
will damage the Department's and NSA's ability to achieve their 
strategic goals. The House also included a provision regarding 
NSA acquisition, which directs the DCI's Senior Acquisition 
Executive to prepare a plan for review, approval, and 
monitoring of NSA's modernization effort. The Department, 
specifically the Office of Assistant Secretary of Defense for 
Command, Control, Communications, and Intelligence, must be 
involved in this effort.
    We appreciate your support and thank you for the 
opportunity to convey our concerns to the House and Senate on 
the FY 2001 Intelligence Authorization bills. We are sending 
identical letters to the Chairman and Ranking Minority Members 
of the House Armed Services Committee, the House and Senate 
Committees on Appropriations Subcommittees on Defense, and 
House Permanent and Senate Select Committees on Intelligence.
            Sincerely,
                                   Henry H. Shelton,
                                           Chairman of the Joint Chiefs 
                                               of Staff.
                                   William S. Cohen,
                                           Secretary of Defense.

                        changes in existing law

    Pursuant to the provisions of paragraph 12 of rule XXVI of 
the Standing Rules of the Senate, the changes in existing law 
made by certain portions of the bill have not been shown in 
this section of the report because, in the opinion of the 
Committee, it is necessary to dispense with showing such 
changes in order to expedite the business of the Senate and 
reduce the expenditure of funds.